10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

☑ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended October 31, 2019

☐ 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 001-09186

TOLL BROTHERS, INC.

(Exact name of Registrant as specified in its charter)

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

Registrant’s telephone number, including area code

(215) 938-8000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock (par value $.01)	TOL	New York Stock Exchange
Guarantee of Toll Brothers Finance Corp. 5.625% Senior Notes due 2024	TOL/24	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:    None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes þ No o

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Act. Yes o No þ

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 ☑ No o

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

Large accelerated filer	☑		Accelerated filer	☐
Non-accelerated filer	☐	(Do not check if a smaller reporting company)	Smaller reporting company	☐
			Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

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

As of April 30, 2019, the aggregate market value of our Common Stock held by non-affiliates (all persons other than executive officers and directors of Registrant) of the Registrant was approximately $5,115,920,000.

As of December 19, 2019, there were approximately 138,696,000 shares of our Common Stock outstanding.

Documents Incorporated by Reference: Portions of the proxy statement of Toll Brothers, Inc. with respect to the 2020 Annual Meeting of Stockholders, scheduled to be held on March 10, 2020, are incorporated by reference into Part III of this report.

TABLE OF CONTENTS

		Page
PART I
	ITEM 1. BUSINESS	1
	ITEM 1A. RISK FACTORS	11
	ITEM 1B. UNRESOLVED STAFF COMMENTS	18
	ITEM 2. PROPERTIES	19
	ITEM 3. LEGAL PROCEEDINGS	19
	ITEM 4. MINE SAFETY DISCLOSURES	19
PART II
	ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	20
	ITEM 6. SELECTED FINANCIAL DATA	22
	ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	23
	ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	46
	ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	46
	ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	46
	ITEM 9A. CONTROLS AND PROCEDURES	46
	ITEM 9B. OTHER INFORMATION	47
PART III
	ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	48
	ITEM 11. EXECUTIVE COMPENSATION	49
	ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	49
	ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS; DIRECTOR INDEPENDENCE	49
	ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES	49
PART IV
	ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES	49
SIGNATURES		57
The following exhibits have been filed electronically with this Form 10-K:
	EXHIBIT 4.41
	EXHIBIT 4.42
	EXHIBIT 4.43
	EXHIBIT 10.28
	EXHIBIT 10.29
	EXHIBIT 10.30
	EXHIBIT 10.31
	EXHIBIT 21
	EXHIBIT 23
	EXHIBIT 31.1
	EXHIBIT 31.2
	EXHIBIT 32.1
	EXHIBIT 32.2
	EXHIBIT101
	EXHIBIT 101.INS
	EXHIBIT 104

PART I

ITEM 1. BUSINESS

Toll Brothers, Inc., a corporation incorporated in Delaware in May 1986, began doing business through predecessor entities in 1967. 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 year refer to our fiscal years ended or ending October 31.

General

We design, build, market, sell, and arrange financing for an array of luxury residential single-family detached, attached home, master planned resort-style golf, and urban low-, mid-, and high-rise communities, principally on land we develop and improve, as we continue to pursue our strategy of broadening our product lines, price points and geographic footprint. We cater to luxury first-time, move-up, empty-nester, active-adult, affordable luxury and second-home buyers in the United States (“Traditional Home Building Product”), as well as urban and suburban renters. We also design, build, market, and sell urban low-, mid-, and high-rise condominiums through Toll Brothers City Living^® (“City Living”). At October 31, 2019, we were operating in 23 states, as well as in the District of Columbia.

In the five years ended October 31, 2019, we delivered 35,146 homes from 724 communities, including 8,107 homes from 426 communities in fiscal 2019. At October 31, 2019, we had 715 communities containing approximately 59,200 home sites that we owned or controlled through options.

Backlog consists of homes under contract but not yet delivered to our home buyers. We had a backlog of $5.26 billion (6,266 homes) at October 31, 2019; we expect to deliver approximately 93% of these homes in fiscal 2020.

We operate our own architectural, engineering, mortgage, title, land development, golf course development, and landscaping subsidiaries. We also operate our own security company, TBI Smart Home Solutions, which provides homeowners with home automation and technology options. In addition, we operate our own lumber distribution, house component assembly, and manufacturing operations.

We are developing several land parcels for master planned communities in which we intend to build homes on a portion of the lots and sell the remaining lots to other builders. Two of these master planned communities are being developed 100% by us, and the remaining communities are being developed through joint ventures with other builders or financial partners.

In addition to our residential for-sale business, we also develop and operate for-rent apartments primarily through joint ventures. These projects are located in multiple metropolitan areas throughout the country and are being operated or developed, (or we expect will be developed) with partners under the brand names Toll Brothers Apartment Living and Toll Brothers Campus Living.^® At October 31, 2019, we or joint ventures in which we have an interest controlled 56 land parcels as for-rent apartment projects containing approximately 18,300 units.

Primarily through several joint ventures, our wholly-owned subsidiary, Gibraltar Capital and Asset Management, LLC (“Gibraltar”), provides builders and developers with land banking and venture capital, owns certain foreclosed real estate, and is a participant in an entity that owns and controls a portfolio of loans and real estate.

See “Investments in Unconsolidated Entities” below for more information relating to our joint ventures.

Acquisitions

As part of our strategy to expand our geographic footprint and product offerings, in fiscal 2019, we acquired substantially all of the assets and operations of Sharp Residential, LLC (“Sharp”) and Sabal Homes LLC (“Sabal”), for approximately $92.8 million and $69.6 million, respectively, in cash. Sharp operates in metropolitan Atlanta, Georgia; Sabal operates in the Charleston, Greenville, and Myrtle Beach, South Carolina markets. The assets acquired, based on our preliminary purchase price allocations, were primarily inventory, including approximately 2,550 home sites owned or controlled through land purchase agreements. In connection with these acquisitions, we assumed contracts to deliver 204 homes with an aggregate value of $96.1 million. The average price of those undelivered homes was approximately $471,100 as of the applicable acquisition date. As a result of these acquisitions, our selling community count increased by 22 communities.

Our Communities and Homes

Our traditional home building communities are generally located in affluent suburban areas near major highways providing access to major cities and are generally located on land we have either acquired and developed or acquired fully approved and, in some cases, improved. Our City Living communities currently operate in Hoboken and Jersey City, New Jersey; New York

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City, New York; Philadelphia, Pennsylvania; the suburbs of Washington, D.C.; Los Angeles, California; and Seattle, Washington.

At October 31, 2019, we were operating in the following major suburban and urban residential markets:

• Boston, Massachusetts, metropolitan area

• Fairfield, Hartford, and New Haven Counties, Connecticut

• Westchester and Dutchess Counties, New York

• Boroughs of Manhattan and Brooklyn in New York City

• Central and northern New Jersey

• Philadelphia, Pennsylvania, metropolitan area

• Lehigh Valley area of Pennsylvania

• Virginia and Maryland suburbs of Washington, D.C.

• Raleigh and Charlotte, North Carolina, metropolitan areas

• Charleston, Greenville, and Myrtle Beach, South Carolina

• Atlanta, Georgia, metropolitan area

• Southeast and southwest coasts and the Jacksonville, Orlando, and Tampa areas of Florida

• Detroit, Michigan, metropolitan area

• Chicago, Illinois, metropolitan area

• Dallas, Houston, and Austin, Texas, metropolitan areas

• Denver, Colorado, metropolitan area and Fort Collins, Colorado

• Phoenix, Arizona, metropolitan area

• Las Vegas and Reno, Nevada, metropolitan areas

• Boise, Idaho, metropolitan area

• Salt Lake City, Utah, metropolitan area

• San Diego and Palm Springs, California, areas

• Los Angeles, California, metropolitan area

• San Francisco Bay, Sacramento, and San Jose areas of northern California,

• Seattle, Washington, metropolitan area, and

• Portland, Oregon, metropolitan area.

We develop individual stand-alone communities as well as multi-product, master planned communities. Our master planned communities, many of which include golf courses and other country club-type amenities, enable us to offer multiple home types and sizes to a broad range of move-up, empty-nester, active-adult, and second-home buyers. We seek to realize efficiencies from shared common costs, such as land development and infrastructure, over the several communities within the master planned community.

Each of our detached home communities offers several home plans with the opportunity for home buyers to select various exterior styles. We design each community to fit existing land characteristics. We strive to achieve diversity among architectural styles within a community by offering a variety of house models and several exterior design options for each model, preserving existing trees and foliage whenever feasible, and curving street layouts to allow relatively few homes to be seen from any vantage point. Our communities have attractive entrances with distinctive signage and landscaping. We believe that our added attention to detail gives each community a diversified neighborhood appearance that enhances home values.

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Our traditional attached home communities generally offer one- to four-story homes, provide for limited exterior options, and often include commonly owned recreational facilities, such as clubhouses, playing fields, swimming pools, and tennis courts.

We are continuously developing new designs to replace or augment existing ones to ensure that our homes reflect current consumer tastes. We use our own architectural staff and also engage unaffiliated architectural firms to develop new designs.

In our Traditional Home Building Product communities, a wide selection of options is available to home buyers for additional charges. The number and complexity of options in our Traditional Home Building Product typically increase with the size and base selling price of our homes. Major options include additional garages, extra fireplaces, guest suites, finished lofts, and other additional rooms. We also offer numerous interior fit-out options such as flooring, wall tile, plumbing fixtures, lighting and home-automation and security technologies.

We market our high-quality homes to upscale luxury home buyers, generally comprised of those persons who have previously owned a principal residence and who are seeking to buy a larger or more desirable home — the so-called “move-up” market. We believe our reputation as a builder of homes for this market enhances our competitive position with respect to the sale of our smaller, more moderately priced homes.

We continue to pursue growth initiatives by expanding our geographic footprint and by broadening our product lines and price points to appeal to buyers across the demographic spectrum. In addition to our traditional “move-up” home buyer, we are focusing on the “empty-nester” market, the millennial generation, and the affordable luxury buyer.

We market to the “empty-nester” market, which we believe has strong growth potential. We have developed a number of home designs with features such as one-story living and first-floor master bedroom suites, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and recreation centers that we believe appeal to this category of home buyers. We have integrated certain of these designs and features in some of our other home types and communities. As of October 31, 2019, we were selling from 39 active-adult communities, in which at least one home occupant must be at least 55 years of age. We expect to open additional active-adult communities during the next few years.

As the millennial generation enters its prime family formation years, we continue to focus on this group with our core suburban homes, affordable luxury offerings, urban condominiums and luxury rental apartment products.

We have developed and are developing, on our own or through joint ventures with third parties, a number of high-density, high-, mid- and low-rise urban luxury communities to serve a growing market of affluent move-up families, empty-nesters, and young professionals seeking to live in or close to major cities. These communities are currently marketed under our City Living brand. These communities, which we are currently developing or planning to develop on our own or through joint ventures, are located in Los Angeles, California; Bethesda, Maryland; Hoboken and Jersey City, New Jersey; the boroughs of Manhattan and Brooklyn, New York; Philadelphia, Pennsylvania; and Seattle, Washington.

A majority of our City Living communities are high-rise projects and take an extended period of time to construct. We generally start selling homes in these communities after construction has commenced and, by the time construction has been completed, we typically have a significant number of homes in backlog. Once construction has been completed, the homes in backlog in these communities are generally delivered quickly.

We believe that the demographics supporting the luxury first-time, move-up, empty-nester, active-adult, affordable luxury and second-home upscale markets will provide us with an opportunity for growth in the future. We continue to believe that many of our communities are in desirable locations that are difficult to replace and that many of these communities have substantial embedded value that may be realized in the future.

At October 31, 2019, we were selling homes from 333 communities, compared to 315 communities at October 31, 2018, and 305 communities at October 31, 2017.

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The following table summarizes certain information with respect to our operating communities at October 31, 2019:

	Total number of operating communities	Number of selling communities	Homes approved	Homes closed	Homes under contract but not closed	Home sites available
Traditional Home Building:
North	59	50	9,227	5,747	1,076	2,404
Mid-Atlantic	71	56	10,183	6,233	1,159	2,791
South	106	93	10,848	5,206	1,339	4,303
West	102	94	11,408	3,949	1,738	5,721
California	40	36	5,040	2,170	842	2,028
Traditional Home Building	378	329	46,706	23,305	6,154	17,247
City Living	5	4	948	589	112	247
Total	383	333	47,654	23,894	6,266	17,494

At October 31, 2019, significant site improvements had not yet commenced on approximately 7,000 of the 17,494 available home sites. Of the 17,494 available home sites, approximately 1,700 were not yet owned by us but were controlled through options.

Of our 383 operating communities at October 31, 2019, a total of 333 communities were offering homes for sale; 48 communities were sold out but not all homes had been completed and delivered; and two communities had been temporarily shut down and are expected to reopen in fiscal 2020. Of the 333 communities in which homes were being offered for sale at October 31, 2019, a total of 270 were detached home communities and 63 were attached home communities.

At October 31, 2019, we had 1,120 homes (exclusive of model homes) under construction or completed but not under contract in our traditional communities, of which 745 were in detached home communities and 375 were in attached home communities. At October 31, 2019, we had 364 homes (exclusive of model homes) under construction or completed but not under contract in four City Living communities that were wholly owned.

As a result of our wide product and geographic diversity, we have a wide range of base sales prices. The general range of base sales prices for our different lines of homes at October 31, 2019 was as follows:

Traditional Home Building Product
Detached homes
Move-up	$	230,000	to	$	792,000
Executive	335,000		to	1,543,000
Estate	320,000		to	3,010,000
Active-adult	317,000		to	723,000
Attached homes
Flats	$	262,000	to	$	1,683,000
Townhomes/Carriage homes	292,000		to	1,480,000
Active-adult	274,000		to	840,000
City Living Product	$	413,000	to	$	7,175,000

In fiscal 2019, of the 8,107 homes delivered, 21% had a delivered price of less than $500,000; 35% had a delivered price of between $500,000 and $750,000; 20% had a delivered price of between $750,000 and $1,000,000; 18% had a delivered price of between $1,000,000 and $2,000,000; and 6% had a delivered price of over $2,000,000. Of the homes delivered in fiscal 2019, approximately 22% of our home buyers paid the full purchase price in cash; the remaining home buyers borrowed approximately 68% of the value of the home.

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The table below provides the average value of options purchased by our home buyers, including lot premiums, and the value of the options as a percent of the base selling price of the homes purchased in fiscal 2019, 2018, and 2017:

	2019				2018				2017
	Option value (in thousands)		Percent of base selling price		Option value (in thousands)		Percent of base selling price		Option value (in thousands)		Percent of base selling price
Overall	$	178	24.4	%	$	165	22.8	%	$	152	22.0	%
Traditional Home Building Product
Detached	$	203	26.6	%	$	189	24.8	%	$	178	24.9	%
Attached	$	99	18.8	%	$	94	19.6	%	$	77	16.7	%
City Living Product	$	31	2.5	%	$	25	1.3	%	$	32	2.2	%

In general, our attached homes and City Living products do not offer significant structural options to our home buyer and thus they have a smaller option value as a percentage of base selling price.

For more information regarding revenues, net contracts signed, income (loss) before income taxes, and assets by segment, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Segments” in Item 7 of this Form 10-K.

Land Policy

Before entering into an agreement to purchase a land parcel, we complete extensive comparative studies and analyses that assist us in evaluating the acquisition. In addition to purchasing land parcels outright, we often attempt to enter into option agreements to purchase land for future communities. We have also entered into several joint ventures with other builders or developers to develop land for the use of the joint venture participants or for sale to third parties.

Our business is subject to many risks, including risks associated with obtaining the necessary approvals on a property and completing the land improvements on it. In order to reduce the financial risk associated with land acquisitions and holdings and to more efficiently manage our capital, where practicable, we enter into option agreements (also referred to herein as “land purchase contracts,” “purchase agreements,” or “options”) to purchase land, on a non-recourse basis, thereby limiting our financial exposure to amounts expended in obtaining any necessary governmental approvals, the costs incurred in the planning and design of the community, and, in some cases, some or all of the cost of the option (the deposit). Option agreements enable us to obtain necessary governmental approvals before we acquire title to the land, and allow us to acquire lots over a specified period of time at pre-determined prices. The use of these agreements may increase our overall cost basis in the land that we eventually acquire, but reduces our risk by allowing us to obtain the necessary development approvals before acquiring the land or allowing us to delay the acquisition to a later date. Historically, as approvals were obtained, the value of the purchase agreements and land generally increased; however, in any given time period, this may not happen. We have the ability to extend some of these purchase agreements for varying periods of time, in some cases by making an additional payment and, in other cases, without making any additional payment. Our purchase agreements are typically subject to numerous conditions, including, but not limited to, the ability to obtain necessary governmental approvals for the proposed community. Our deposit under an agreement may be returned to us if all approvals are not obtained, although predevelopment costs usually will not be recoverable. We generally have the right to cancel any of our agreements to purchase land by forfeiture of some or all of the deposits we have made pursuant to the agreement.

During fiscal 2019 and 2018, we acquired control of approximately 13,900 and 13,400 home sites, respectively, net of options terminated and lots sold. At October 31, 2019, we controlled approximately 59,200 home sites, as compared to approximately 53,400 home sites at October 31, 2018, and approximately 48,300 home sites at October 31, 2017.

We are developing several parcels of land for master planned communities in which we intend to build homes on a portion of the lots and sell the remaining lots to other builders. Two of these master planned communities are being developed 100% by us, and the remaining communities are being developed through joint ventures with other builders or financial partners. At October 31, 2019, our Land Development Joint Ventures owned approximately 10,100 home sites. At October 31, 2019, we had agreed to acquire 130 home sites and expect to purchase approximately 2,500 additional home sites from several of our Land Development Joint Ventures over a number of years.

Our ability to continue development activities over the long term will be dependent upon, among other things, a suitable economic environment and our continued ability to locate and enter into options or agreements to purchase land, obtain

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governmental approvals for suitable parcels of land, and consummate the acquisition and complete the development of such land.

The following is a summary of home sites for future communities that we either owned or controlled through options or purchase agreements at October 31, 2019, as distinguished from our operating communities:

	Number of communities	Number of home sites
Traditional Home Building:
North	41	3,769
Mid-Atlantic	51	3,992
South	89	8,976
West	102	12,628
California	41	5,154
Traditional Home Building	324	34,519
City Living	8	951
Total	332	35,470

Of the 35,470 planned home sites at October 31, 2019, we owned 14,466 and controlled 21,004 through options and purchase agreements.

At October 31, 2019, the aggregate purchase price of land parcels subject to option and purchase agreements in operating communities and future communities was approximately $2.36 billion (including $10.8 million of land to be acquired from joint ventures in which we have invested). Of the $2.36 billion of land purchase commitments, we paid or deposited $168.8 million, and, if we acquire all of these land parcels, we will be required to pay an additional $2.19 billion. The purchases of these land parcels are expected to occur over the next several years. We have additional land parcels under option that have been excluded from the aforementioned aggregate purchase price since we do not believe that we will complete the purchase of these land parcels and no additional funds will be required from us to terminate these contracts. These option contracts have either been written off or written down to the estimated amount that we expect to recover when the contracts are terminated.

We have a substantial amount of land currently under control for which approvals have been obtained or are being sought. We devote significant resources to locating suitable land for future development and obtaining the required approvals on land under our control. There can be no assurance that the necessary development approvals will be secured for the land currently under our control or for land that we may acquire control of in the future or that, upon obtaining such development approvals, we will elect to complete the purchases of land under option or complete the development of land that we own. We generally have been successful in obtaining governmental approvals in the past. We believe that we have an adequate supply of land in our existing communities and proposed communities (assuming that all properties are developed) to maintain our operations at current levels for several years.

Community Development

We typically expend considerable effort in developing a concept for each community, which includes determining the size, style, and price range of the homes; the layout of the streets and individual home sites; and the overall community design. After the necessary governmental subdivision and other approvals have been obtained, which may take several years, we improve the land by clearing and grading it; installing roads, underground utility lines, recreational amenities, and distinctive entrance features; and staking out individual home sites.

We act as a general contractor for most of our projects. Subcontractors perform all home construction and land development work, generally under fixed-price contracts. We generally have multiple sources for the materials we purchase, and we have not experienced significant delays due to unavailability of necessary materials. See “Manufacturing/Distribution Facilities” in Item 2 of this Form 10-K.

Our construction managers coordinate subcontracting activities and supervise all aspects of construction work and quality control. One of the ways in which we seek to achieve home buyer satisfaction is by providing our construction managers with incentive compensation arrangements based upon each home buyer’s satisfaction, as expressed by the buyers’ responses on pre- and post-closing questionnaires.

The most significant variable affecting the timing of our revenue stream, other than housing demand, is the opening of the community for sale, which generally occurs shortly after receipt of final land regulatory approvals. Receipt of approvals

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permits us to begin the process of obtaining executed sales contracts from home buyers. Although our sales and construction activities vary somewhat by season, which can affect the timing of closings, any such seasonal effect is relatively insignificant compared to the effect of the timing of receipt of final regulatory approvals, the opening of the community, and the subsequent timing of closings.

Marketing and Sales

We believe that our marketing strategy for our Traditional Home Building Product lines of homes, has enhanced our reputation as a builder and developer of high quality upscale homes. We believe this reputation results in greater demand for all of our lines of homes. We generally include attractive decorative features even in our less expensive homes, based on our belief that these enhancements improve our marketing and sales effort.

In determining the prices for our homes, we utilize, in addition to management’s extensive experience, an internally developed value analysis program that compares our homes with homes offered by other builders in each local marketing area. In our application of this program, we assign a positive or negative dollar value to differences between our product features and those of our competitors, such as house and community amenities, location, and reputation.

We typically have a sales office in each community that is staffed by our own sales personnel. Sales personnel are generally compensated with both salary and commission. A significant portion of our sales is also derived from the introduction of customers to our communities by local real estate agents.

We expend great effort and cost in designing and decorating our model homes, which play an important role in our marketing. Interior decorating varies among the models and is carefully selected to reflect the lifestyles of prospective buyers.

Visitors to our website, www.TollBrothers.com, can obtain detailed information regarding our communities and homes across the country, take panoramic or video tours of our homes, and design their own home based upon our available floor plans and options. We also advertise in newspapers, in other local and regional publications, and on billboards and online media sites.

We have a two-step sales process. The first step takes place when a potential home buyer visits one of our communities and decides to purchase one of our homes, at which point the home buyer signs a non-binding deposit agreement and provides a small, refundable deposit. This deposit will reserve, for a short period of time, the home site or unit that the home buyer has selected. This deposit also locks in the base price of the home. Because these deposit agreements are non-binding, they are not recorded as signed contracts, nor are they recorded in backlog. Deposit rates are tracked on a weekly basis to help us monitor the strength or weakness in demand in each of our communities. If demand for homes in a particular community is strong, we determine whether the base selling prices in that community should be increased. If demand for the homes in a particular community is weak, we determine whether or not sales incentives and/or discounts on home prices should be adjusted.

The second step in the sales process occurs when we sign a binding agreement of sale with the home buyer and the home buyer gives us a cash down payment that is generally non-refundable. Cash down payments currently average approximately 7% of the total purchase price of a home. Between the time that the home buyer signs the non-binding deposit agreement and the binding agreement of sale, he or she is required to complete a financial questionnaire that gives us the ability to evaluate whether the home buyer has the financial resources necessary to purchase the home. If we determine that the home buyer is not financially qualified, we will not enter into an agreement of sale with the home buyer. During fiscal 2019, 2018, and 2017, our customers signed net contracts for $6.71 billion (8,075 homes), $7.60 billion (8,519 homes), and $6.83 billion (8,175 homes), respectively. When we report net contracts signed, the number and value of contracts signed are reported net of all cancellations occurring during the reporting period, whether signed in that reporting period or in a prior period. Only outstanding agreements of sale that have been signed by both the home buyer and us as of the end of the period for which we are reporting are included in backlog.

Customer Mortgage Financing

We maintain relationships with a widely-diversified group of mortgage financial institutions, many of which are among the largest in the industry. We believe that regional and community banks continue to recognize the long-term value in creating relationships with affluent customers such as our home buyers, and these banks continue to provide these 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 attractive credit profiles, as compared to the average home buyer.

Our mortgage subsidiary provides mortgage financing for a portion of our home closings. Our mortgage subsidiary determines whether the home buyer qualifies for the mortgage that he or she is seeking based upon information provided by the home buyer and other sources. For those home buyers who qualify, our mortgage subsidiary provides the home buyer with a mortgage commitment that specifies the terms and conditions of a proposed mortgage loan based upon then-current market conditions.

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Information about the number and amount of loans funded by our mortgage subsidiary is contained in the table below.

Fiscal year	Total Toll Brothers, Inc. settlements (a)	TBI Mortgage Company financed settlements* (b)	Gross capture rate (b/a)	Amount financed (in millions)
2019	8,107	3,259	40.2%	$	1,572.1
2018	8,265	2,918	35.3%	$	1,411.6
2017	7,151	2,407	33.7%	$	1,168.4
2016	6,098	2,523	41.4%	$	1,240.9
2015	5,525	2,103	38.1%	$	1,001.2

* Amounts under “TBI Mortgage Company financed settlements” exclude brokered and referred loans, which amounted to approximately 4.0%, 5.0%, 3.6%, 4.2%, and 6.2%, of our home closings in fiscal 2019, 2018, 2017, 2016, and 2015, respectively.

Prior to the actual closing of the home and funding of the mortgage, the home buyer may lock in an interest rate based upon the terms of the commitment. At the time of rate lock, our mortgage subsidiary agrees to sell the proposed mortgage loan to one of several outside recognized mortgage financing institutions (“investors”) that are willing to honor the terms and conditions, including the interest rate, committed to the home buyer. We believe that these investors have adequate financial resources to honor their commitments to our mortgage subsidiary. At October 31, 2019, our mortgage subsidiary was committed to fund $1.93 billion of mortgage loans. Of these commitments, $565.6 million, as well as $208.6 million of mortgage loans receivable, have “locked-in” interest rates as of October 31, 2019. Our mortgage subsidiary funds its commitments through a combination of its own capital, capital provided from us, its loan facility, and the sale of mortgage loans to various investors. Our mortgage subsidiary has commitments from investors to acquire all $774.2 million of these locked-in loans and receivables. Our home buyers have not locked in the interest rate on the remaining $1.36 billion of mortgage loan commitments as of October 31, 2019.

Backlog

We had a backlog of $5.26 billion (6,266 homes) at October 31, 2019; $5.52 billion (6,105 homes) at October 31, 2018; and $5.06 billion (5,851 homes) at October 31, 2017. Of the 6,266 homes in backlog at October 31, 2019, approximately 93% are expected to be delivered by October 31, 2020.

Competition

The home building business is highly competitive and fragmented. We compete with numerous home builders of varying sizes, ranging from local to national in scope, some of which have greater sales and financial resources than we do. Sales of existing homes also provide competition. We compete primarily on the basis of price, location, design, quality, service, and reputation. We believe our financial stability, relative to many others in our industry, is a favorable competitive factor.

Investments in Unconsolidated Entities

We have investments in various unconsolidated entities. These entities include Land Development Joint Ventures, Home Building Joint Ventures, Rental Property Joint Ventures, and Gibraltar Joint Ventures. At October 31, 2019, we had investments of $366.3 million in these unconsolidated entities and were committed to invest or advance up to an additional $38.8 million to these entities if they require additional funding.

In fiscal 2019, 2018, and 2017, we recognized income from the unconsolidated entities in which we had an investment of $24.9 million, $85.2 million, and $116.1 million, respectively. In addition, we earned construction and management fee income from these unconsolidated entities of $21.8 million in fiscal 2019, $19.2 million in fiscal 2018, and $19.1 million in fiscal 2017.

Land Development Joint Ventures

At October 31, 2019, we have investments in eight Land Development Joint Ventures to develop land. Some of these Land Development Joint Ventures develop land for the sole use of the venture participants, including us, and others develop land for sale to the joint venture participants and to unrelated builders. At October 31, 2019, we had approximately $110.3 million invested in our Land Development Joint Ventures and funding commitments of $28.6 million to two of the Land Development Joint Ventures which will be funded if additional investments in the ventures are required. At October 31, 2019, three of these joint ventures had aggregate loan commitments of $100.9 million and outstanding borrowings against these commitments of $88.3 million. At October 31, 2019, our Land Development Joint Ventures owned approximately 10,100 home sites.

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At October 31, 2019, we had agreed to acquire 130 home sites from one of our Land Development Joint Ventures for an aggregate purchase price of approximately $10.8 million. In addition, we expect to purchase approximately 2,500 additional home sites over a number of years from several of these joint ventures. The purchase prices of these home sites will be determined at a future date.

Home Building Joint Ventures

At October 31, 2019, we had an aggregate of $60.5 million of investments in four Home Building Joint Ventures to develop approximately 100 luxury for-sale homes. At October 31, 2019, we had $1.4 million of funding commitments to one of these joint ventures. In fiscal 2019, the value of net contracts signed by our Home Building Joint Ventures was $131.0 million (40 homes), and they delivered $374.6 million (186 homes) of revenue. At October 31, 2019, our Home Building Joint Ventures had a backlog of undelivered homes of $76.3 million (26 homes).

Rental Property Joint Ventures

As part of our strategy to diversify product lines, over the past several years, we acquired control of a number of land parcels as for-rent apartment projects, including several student housing sites. At October 31, 2019, we had an aggregate of $174.3 million of investments in 20 Rental Property Joint Ventures. At October 31, 2019, we or joint ventures in which we have an interest controlled 56 land parcels as for-rent apartment projects containing approximately 18,300 units. At October 31, 2019, joint ventures in which we had an interest had aggregate loan commitments of $1.39 billion and outstanding borrowings against these commitments of $1.02 billion.These projects are located in multiple metropolitan areas throughout the country and are being operated or developed (or we expect will be developed) with partners under the brand names Toll Brothers Apartment Living and Toll Brothers Campus Living.

In fiscal 2019, one of our Rental Property Joint Ventures, located in Phoenixville, Pennsylvania, sold its assets to an unrelated party for $77.8 million. From our investment in this joint venture, we received cash of $7.4 million and recognized a gain from this sale of $3.8 million in fiscal 2019. In fiscal 2018, three of our Rental Property Joint Ventures sold their assets to unrelated parties for $477.5 million. These joint ventures had owned, developed, and operated multifamily rental properties located in suburban Washington, D.C. and Westborough, Massachusetts, and a student housing community in College Park, Maryland. From our investment in these joint ventures, we received cash of $79.1 million and recognized gains from these sales of $67.2 million in fiscal 2018. The gains recognized from these sales are included in “Income from unconsolidated entities” in our Consolidated Statement of Operations and Comprehensive Income included in Item 15(a)1 of this Form 10-K.

At October 31, 2019, we had approximately 2,000 units in for-rent apartment projects that were occupied or ready for occupancy, 1,700 units in the lease-up stage, 8,400 units in the design phase or under development, and 6,200 units in the planning stage. Of the 18,300 units at October 31, 2019, 7,700 were owned by joint ventures in which we have an interest; approximately 4,400 were owned by us; and 6,200 were under contract to be purchased by us.

Gibraltar Joint Ventures

Over the past three years, we, through Gibraltar, entered into several ventures with an institutional investor to provide builders and developers with land banking and venture capital. We have approximately a 25% interest in these ventures. These ventures will finance builders’ and developers’ acquisition and development of land and home sites and pursue other complementary investment strategies. We may invest up to $100.0 million in these ventures. As of October 31, 2019, we had an investment of $20.5 million in these ventures.

Regulation and Environmental Matters

We are subject to various local, state, and federal statutes, ordinances, rules, and regulations concerning zoning, building design, construction, and similar matters, including local regulations that impose restrictive zoning and density requirements. In a number of our markets, there has been an increase in state and local legislation authorizing the acquisition of land as dedicated open space, mainly by governmental, quasi-public, and nonprofit entities. In addition, we are subject to various licensing, registration, and filing requirements in connection with the construction, advertisement, and sale of homes in our communities. The impact of these laws and requirements has been to increase our overall costs, and they may have delayed, and in the future may delay, the opening of communities, or may have caused, and in the future may cause, us to conclude that development of particular communities would not be economically feasible, even if any or all necessary governmental approvals were obtained. See “Land Policy” in this Item 1. We also may be subject to periodic delays or may be precluded entirely from developing communities due to building moratoriums in one or more of the areas in which we operate. Generally, such moratoriums often relate to insufficient water or sewage facilities or inadequate road capacity.

In order to secure certain approvals in some areas, we may be required to provide affordable housing at below market rental or sales prices. The impact of these requirements on us depends on how the various state and local governments in the areas in

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which we engage, or intend to engage, in development implement their programs for affordable housing. To date, these restrictions have not had a material impact on us.

We also are subject to a variety of local, state, and federal statutes, ordinances, rules, and regulations concerning protection of public health and the environment (“environmental laws”). The particular environmental laws that apply to any given community vary according to the location and environmental condition of the site and the present and former uses of the site. Complying with these environmental laws may result in delays, may cause us to incur substantial compliance and other costs, and/or may prohibit or severely restrict development in certain environmentally sensitive regions or areas.

Before consummating an acquisition, we generally engage independent environmental consultants to evaluate land for the potential of hazardous or toxic materials, wastes, or substances, and we believe that because of this, we have not been significantly affected to date by the presence of such materials on our land.

Our mortgage subsidiary is subject to various state and federal statutes, rules, and regulations, including those that relate to licensing, lending operations, and other areas of mortgage origination and financing. The impact of those statutes, rules, and regulations can be to increase our home buyers’ cost of financing, increase our cost of doing business, and restrict our home buyers’ access to some types of loans.

Insurance/Warranty

All of our homes are sold under our limited warranty as to workmanship and mechanical equipment. Many homes also come with a limited multi-year warranty as to structural integrity.

We maintain insurance, subject to deductibles and self-insured amounts, to protect us against various risks associated with our activities, including, among others, general liability, “all-risk” property, construction defects, workers’ compensation, automobile, and employee fidelity. We accrue for our expected costs associated with the deductibles and self-insured amounts.

Employees

At October 31, 2019, we employed approximately 5,100 persons full-time. At October 31, 2019, we were subject to one collective bargaining agreement that covered less than 2% of our employees. We believe our employee relations are good.

Available Information

We file annual, quarterly and current reports, proxy statements, and other information with the Securities and Exchange Commission (the “SEC”). These filings are available over the internet at the SEC’s website at http://www.sec.gov.

Our principal Internet address is www.TollBrothers.com. We make our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 available through our website under “Investor Relations” (our “Investor Relations website”), free of charge, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.

We provide information about our business and financial performance, including our corporate profile, on our Investor Relations website. Additionally, we webcast our earnings calls and certain events we participate in with members of the investment community on our Investor Relations website. Further corporate governance information, including our code of ethics and business conduct, corporate governance guidelines, and board committee charters, is also available on our Investor Relations website. The content of our websites is not incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC, and any references to our websites are intended to be inactive textual references only.

FORWARD-LOOKING STATEMENTS

Certain information included in this report or in other materials we have filed or will file with the 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. One 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 future events. These statements contain words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “may,” “can,” “could,” “might,” “should,” and other words or phrases of similar meaning. Such statements may include, but are not limited to, information related to: market conditions; demand for our homes; 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; home warranty and construction defect claims; unrecognized

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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 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, investigations, and claims.

From time to time, forward-looking statements also are included in other reports on Forms 10-Q and 8-K; in press releases; in presentations; on our website; and in other materials released to the public. 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. This can occur as a result of incorrect assumptions or as a consequence of known or unknown risks and uncertainties. Many factors mentioned in this report or in other reports or public statements made by us, such as market conditions, government regulation and the competitive environment, will be important in determining our future performance. Consequently, actual results may differ materially from those that might be anticipated from our forward-looking statements.

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 discussion of factors that we believe could cause our actual results to differ materially from expected and historical results, see “Item 1A – Risk Factors” below. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995, and all of our forward-looking statements are expressly qualified in their entirety by the cautionary statements contained or referenced in this section.

INFORMATION ABOUT OUR EXECUTIVE OFFICERS

Information about our executive officers is incorporated by reference from Part III, Item 10 of this Form 10-K.

ITEM 1A. RISK FACTORS

We are subject to demand fluctuations in the housing industry. Any reduction in demand would adversely affect our business, results of operations, and financial condition.

Demand for our homes is subject to fluctuations, often due to factors outside of our control, such as employment levels, consumer confidence and spending, housing demand, availability of financing for homebuyers, interest rates, availability and prices of new homes compared to existing inventory, and demographic trends. In a housing market downturn, our sales and results of operations will be adversely affected; we may have significant inventory impairments and other write-offs; our gross margins may decline significantly from historical levels; and we may incur substantial losses from operations. At any particular time, we cannot predict whether housing market conditions will improve, deteriorate or continue as they exist at that time.

Adverse changes in economic conditions in markets where we conduct our operations and where prospective purchasers of our homes live could reduce the demand for homes and, as a result, could adversely affect our business, results of operations, and financial condition.

Adverse changes in economic conditions in markets where we conduct our operations and where prospective purchasers of our homes live have had and may in the future have a negative impact on our business. Adverse changes in employment levels, job growth, consumer confidence, interest rates, perceptions regarding the strength of the housing market, and population growth, or an oversupply of homes for sale may reduce demand or depress prices for our homes and cause home buyers to cancel their agreements to purchase our homes. This, in turn, could adversely affect our results of operations and financial condition.

Our ability to execute on our business strategies is uncertain, and we may be unable to achieve our goals.

Our strategy includes growing our business by expanding our luxury brand to new price points, product lines and geographies. We cannot assure you that (i) our strategies, and any related initiatives or actions, will be successful or that they will generate growth, earnings or returns at any particular level or within any particular time frame; (ii) in the future we will achieve positive operational or financial results or results in any particular metric or measure equal to or better than those attained in the past; or (iii) we will perform in any period as well as other homebuilders. We also cannot provide any assurance that we will be able to maintain our strategies, and any related initiatives or actions, in the future and, due to unexpectedly favorable or unfavorable market conditions or other factors, we may determine that we need to adjust, refine or abandon all or portions of our strategies, and any related initiatives or actions, though we cannot guarantee that any such adjustments will be successful. The failure of any one or more of our present strategies, or any related initiatives or actions, or the failure of any adjustments that we may pursue or implement, would likely have an adverse effect on our ability to increase the value and profitability of our business;

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on our ability to operate our business in the ordinary course; on our overall liquidity; and on our consolidated financial statements, and the effect, in each case, could be material.

A significant portion of our revenues and income from operations is generated from California in our Traditional Home Building segment.

A significant portion of our revenues and income from operations are concentrated in California. Factors beyond our control could have a material adverse effect on our revenues and/or income from operations generated in California. These factors include, but are not limited to: changes in the regulatory and fiscal environment; prolonged economic downturns; high levels of foreclosures; lack of affordability; a decline in foreign buyer demand; severe weather including drought and the risk of local governments imposing building moratoriums; natural disasters such as earthquakes and wild fires; environmental incidents; and declining population and/or growth rates and the related reduction in housing demand in these regions. If home sale activity or selling prices decline in California, our costs may not decline at all or at the same rate and, as a result, our consolidated financial results may be adversely affected.

In the construction of a high-rise building, whether a for-sale or a for-rent property, we incur significant costs before we can begin construction, sell and deliver the units to our customers, or commence the collection of rent and recover our costs. We may be subject to delays in construction that could lead to higher costs that could adversely affect our operating results. Changing market conditions during the construction period could negatively impact selling prices and rents, which could adversely affect our operating results.

Before a high-rise building generates any revenues, we make significant expenditures to acquire land; to obtain permits, development approvals, and entitlements; and to construct the building. It generally takes several years for us to acquire the land and construct, market, and deliver units or lease units in a high-rise building. Completion times vary on a building-by-building basis depending on the complexity of the project, its stage of development when acquired, and the regulatory and community issues involved. As a result of these potential delays in the completion of a building, we face the risk that demand for housing may decline during the period and we may be forced to sell or lease units at a loss or for prices that generate lower profit margins than we initially anticipated. Furthermore, if construction is delayed, we may face increased costs as a result of inflation or other causes and/or asset carrying costs (including interest on funds used to acquire land and construct the building). These costs can be significant and can adversely affect our operating results. In addition, if values of the building or units decline, we may also be required to recognize material write-downs of the book value of the building in accordance with U.S. generally accepted accounting principles.

Increases in cancellations of existing agreements of sale could have an adverse effect on our business.

Our backlog reflects agreements of sale with our home buyers for homes that have not yet been delivered. We have received a deposit from our home buyer for each home reflected in our backlog, and generally we have the right to retain the deposit if the home buyer does not complete the purchase. In some cases, however, a home buyer may cancel the agreement of sale and receive a complete or partial refund of the deposit for reasons such as state and local law, the home buyer’s inability to obtain mortgage financing, his or her inability to sell his or her current home, or our inability to complete and deliver the home within the specified time. At October 31, 2019, we had 6,266 homes with a sales value of $5.26 billion in backlog. If economic conditions decline, if mortgage financing becomes less available, or if our homes become less attractive due to conditions at or in the vicinity of our communities, we could experience an increase in home buyers canceling their agreements of sale with us, which could have an adverse effect on our business and results of operations.

The home building industry is highly competitive, and, if other home builders are more successful or offer better value to our customers, our business could decline.

We operate in a very competitive environment in which we face competition from a number of other home builders in each market in which we operate. We compete with large national and regional home building companies and with smaller local home builders for land, financing, raw materials, and skilled management and labor resources. We also compete with the resale home market, also referred to as the “previously owned or existing” home market. An oversupply of homes available for sale or the heavy discounting of home prices by some of our competitors could adversely affect demand for our homes and the results of our operations. An increase in competitive conditions can have any of the following impacts on us: delivery of fewer homes; sale of fewer homes or higher cancellations by our home buyers; an increase in selling incentives and/or reduction of prices; and realization of lower gross margins due to lower selling prices or an inability to increase selling prices to offset increased costs of the homes delivered. If we are unable to compete effectively in our markets, our business could decline disproportionately to that of our competitors.

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If we are not able to obtain suitable financing, or if the interest rates on our debt are increased, or if our credit ratings are lowered, our business and results of operations may decline.

Our business and results of operations depend substantially on our ability to obtain financing, whether from bank borrowings or from financing in the public debt markets. Each of our $1.9 billion revolving credit facility and our $800.0 million term loan matures in November 2024, and $2.67 billion of our senior notes become due and payable at various times from February 2022 through November 2029. We cannot be certain that we will be able to continue to replace existing financing or find additional sources of financing in the future on favorable terms or at all.

If we are not able to obtain suitable financing at reasonable terms or replace existing debt and credit facilities when they become due or expire, our costs for borrowings will likely increase and our revenues may decrease or we could be precluded from continuing our operations at current levels.

Increases in interest rates can make it more difficult and/or expensive for us to obtain the funds we need to operate our business. The amount of interest we incur on our revolving bank credit facility and term loan fluctuates based on changes in short-term interest rates and the amount of borrowings we incur. Increases in interest rates generally and/or any downgrade in the ratings that national rating agencies assign to our outstanding debt securities could increase the interest rates we must pay on any subsequent issuances of debt securities, and any such ratings downgrade could also make it more difficult for us to sell such debt securities.

If home buyers are not able to obtain suitable financing, our results of operations may decline.

Our results of operations also depend on the ability of our potential home buyers to obtain mortgages for the purchase of our homes. Any uncertainty in the mortgage markets and its impact on the overall mortgage market, including the tightening of credit standards, future increases in the effective cost of home mortgage financing (including as a result of changes to federal tax law), and increased government regulation, could adversely affect the ability of our customers to obtain financing for a home purchase, thus preventing our potential home buyers from purchasing our homes. In addition, where our potential home buyers must sell their existing homes in order to buy a home from us, increases in mortgage costs and/or lack of availability of mortgages could prevent the buyers of our potential home buyers’ existing homes from obtaining the mortgages they need to complete their purchases, which would result in our potential home buyers’ inability to buy a home from us. Similar risks apply to those buyers whose contracts are in our backlog of homes to be delivered. If our home buyers, potential buyers, or buyers of our home buyers’ current homes cannot obtain suitable financing, our sales and results of operations could be adversely affected.

If our ability to resell mortgages to investors is impaired, our home buyers may be required to find alternative financing.

Generally, when our mortgage subsidiary closes a mortgage for a home buyer at a previously locked-in rate, it already has an agreement in place with an investor to acquire the mortgage following the closing. Should the resale market for our mortgages decline or the underwriting standards of our investors become more stringent, our ability to sell future mortgages could be adversely affected and either we would have to commit our own funds to long-term investments in mortgage loans, which could, among other things, delay the time when we recognize revenues from home sales on our statements of operations, or our home buyers would be required to find an alternative source of financing. If our home buyers cannot obtain another source of financing in order to purchase our homes, our sales and results of operations could be adversely affected.

If land is not available at reasonable prices, our sales and results of operations could decrease.

In the long term, our operations depend on our ability to obtain land at reasonable prices for the development of our residential communities. At October 31, 2019, we had approximately 59,200 home sites that we owned or controlled through options. In the future, changes in the general availability of land, competition for available land, availability of financing to acquire land, zoning regulations that limit housing density, and other market conditions may hurt our ability to obtain land for new residential communities at prices that will allow us to make a reasonable profit. If the supply of land appropriate for development of our residential communities becomes more limited because of these factors or for any other reason, the cost of land could increase and/or the number of homes that we are able to sell and build could be reduced.

If the market value of our land and homes declines, our results of operations will likely decrease.

The market value of our land and housing inventories depends on market conditions. We acquire land for expansion into new markets and for replacement of land inventory and expansion within our current markets. If housing demand decreases below what we anticipated when we acquired our inventory, we may not be able to make profits similar to what we have made in the past, may experience less than anticipated profits, and/or may not be able to recover our costs when we sell and build homes.

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Due to the significant decline in our business during the 2006–2011 downturn in the housing industry, we recognized significant write-downs of our inventory.

Failure by our employees or representatives to comply with laws and regulations may harm us.

We are required to comply with laws and regulations that govern all aspects of our business including land acquisition, development, home construction, labor and employment, mortgage origination, title and escrow operations, sales and warranty. It is possible that our employees or entities engaged by us, such as subcontractors, could intentionally or unintentionally violate some of these laws and regulations. Although we endeavor to take immediate action if we become aware of such violations, we may incur fines or penalties as a result of these actions and our reputation with governmental agencies and our customers could be damaged.

Negative publicity could negatively impact sales, which could cause our revenues or results of operations to decline.

Our business strategy relies heavily on our brand, which is critical to our success. Unfavorable media or investor and analyst reports related to our industry, company, brand, marketing, personnel, operations, business performance, or prospects may affect our stock price and the performance of our business, regardless of its accuracy or inaccuracy. Furthermore, the speed at which negative publicity is disseminated has increased dramatically through the use of electronic communication, including social media outlets, websites and other digital platforms. Our success in maintaining and enhancing our brand depends on our ability to adapt to this rapidly changing media environment. Adverse publicity or negative commentary from any media outlets could damage our reputation and reduce the demand for our homes, which would adversely affect our business.

In addition, we can be affected by poor relations with the residents of communities we develop because efforts made by us to resolve issues or disputes that may arise in connection with the operation or development of their communities, or in connection with the transition of a homeowners association, could be deemed unsatisfactory by the affected residents and subsequent actions by these residents could adversely affect sales or our reputation. In addition, we could decide or be required to make material expenditures related to the settlement of such issues or disputes, which could adversely affect our results of operations.

We rely on subcontractors to construct our homes and on building supply companies to supply components for the construction of our homes. The failure of our subcontractors to properly construct our homes or defects in the components we obtain from building supply companies could have an adverse effect on us.

We engage subcontractors to perform the actual construction of our homes and purchase components used in the construction of our homes from building supply companies. Despite our quality control efforts, we may discover that our subcontractors were engaging in improper construction practices or that the components purchased from building supply companies are not performing as specified. The occurrence of such events could require us to repair the homes in accordance with our standards and as required by law. The cost of satisfying our legal obligations in these instances may be significant, and we may be unable to recover the cost of repair from subcontractors, suppliers and insurers. For example, we have incurred or expect to incur significant costs to repair homes built in Pennsylvania and Delaware. See Note 7 – “Accrued Expenses” in Item 15(a)1 of this Form 10-K for additional information regarding warranty charges.

We participate in certain joint ventures where we may be adversely impacted by the failure of the joint venture or its participants to fulfill their obligations.

We have investments in and commitments to certain joint ventures with unrelated parties. These joint ventures may borrow money to help finance their activities. In certain circumstances, the joint venture participants, including ourselves, are required to provide guarantees of certain obligations relating to the joint ventures. In most of these joint ventures, we do not have a controlling interest and, as a result, are not able to require these joint ventures or their participants to honor their obligations or renegotiate them on acceptable terms. If the joint ventures or their participants do not honor their obligations, we may be required to expend additional resources or suffer losses, which could be significant.

Government regulations and legal challenges may delay the start or completion of our communities, increase our expenses, or limit our home building activities, which could have a negative impact on our operations.

We must obtain the approval of numerous governmental authorities in connection with our development activities, and these governmental authorities often have broad discretion in exercising their approval authority. We incur substantial costs related to compliance with legal and regulatory requirements. Any increase in legal and regulatory requirements may cause us to incur substantial additional costs or, in some cases, cause us to determine that the property is not feasible for development.

Various local, state, and federal statutes, ordinances, rules, and regulations concerning building, zoning, sales, accessibility, anti-discrimination, and similar matters apply to and/or affect the housing industry. Governmental regulation affects construction activities as well as sales activities, mortgage lending activities, and other dealings with home buyers, including

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anti-discrimination laws such as the Fair Housing Act and data privacy laws such as the California Consumer Privacy Act. The industry also has experienced an increase in state and local legislation and regulations that limit the availability or use of land. Municipalities may also restrict or place moratoriums on the availability of utilities, such as water and sewer taps. In some areas, municipalities may enact growth control initiatives, which will restrict the number of building permits available in a given year. In addition, we may be required to apply for additional approvals or modify our existing approvals because of changes in local circumstances or applicable law. If municipalities in which we operate take actions like these, it could have an adverse effect on our business by causing delays, increasing our costs, or limiting our ability to operate in those municipalities. Further, we may experience delays and increased expenses as a result of legal challenges to our proposed communities, whether brought by governmental authorities or private parties.

Our mortgage subsidiary is subject to various state and federal statutes, rules, and regulations, including those that relate to licensing, lending operations, and other areas of mortgage origination and financing. The impact of those statutes, rules, and regulations can increase our home buyers’ cost of financing, increase our cost of doing business, and restrict our home buyers’ access to some types of loans.

Increases in taxes or government fees could increase our costs, and adverse changes in tax laws or their interpretation could reduce demand for our homes and negatively affect our operating results.

Increases in real estate taxes and other local government fees, such as fees imposed on developers to fund schools, open space, and road improvements, and/or provide low- and moderate-income housing, could increase our costs and have an adverse effect on our operations. In addition, increases in local real estate taxes could adversely affect our potential home buyers, who may consider those costs in determining whether to make a new home purchase and decide, as a result, not to purchase one of our homes.

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law, which, among other things, (i) limits the federal deduction for mortgage interest so that it only applies to the first $750,000 of a new mortgage (as compared to $1 million under previous tax law) and (ii) introduced a $10,000 cap on the federal deduction for state and local taxes. These changes could reduce the perceived affordability of homeownership, and therefore the demand for homes, and/or have a moderating impact on home sales prices, in areas with relatively high housing prices and/or high state and local income taxes and real estate taxes, including in certain of our markets in California, New Jersey and New York. Any further changes in the income tax laws that would reduce or eliminate tax deductions or incentives to homeowners could make housing less affordable or otherwise reduce the demand for housing, which in turn could reduce our sales and hurt our results of operations. Further, while we believe that our recorded tax balances are adequate, it is not possible to predict the effects of possible changes

in the tax laws or changes in their interpretation and whether they could have a material adverse impact on our operating

results. We have filed our tax returns in prior years based upon certain filing positions we believe are appropriate. If the

Internal Revenue Service or state taxing authorities disagree with these filing positions, we may owe additional taxes.

We are subject to extensive environmental regulations, which may cause us to incur additional operating expenses, subject us to longer construction cycle times, or result in material fines or harm to our reputation.

We are subject to a variety of local, state and federal statutes, ordinances, rules and regulations concerning the protection of health and the environment, including those regulating the emission or discharge of materials into the environment, the management of storm water runoff at construction sites, the handling, use, storage and disposal of hazardous substances, impacts to wetlands and other sensitive environments, and the remediation of contamination at properties that we own or develop. The environmental regulations applicable to each community in which we operate vary greatly depending on the location of the community site, the site's environmental conditions and the present and former use of the site. Environmental regulations may cause delays, may cause us to incur substantial compliance, remediation or other costs, and can prohibit or severely restrict development and homebuilding activity. In addition, noncompliance with these regulations could result in fines and penalties, obligations to remediate, permit revocations or other sanctions; and contamination or other environmental conditions at or in the vicinity of our developments may result in claims against us for personal injury, property damage or other losses.

From time to time, the United States Environmental Protection Agency and other federal or state agencies review homebuilders' compliance with environmental laws and may levy fines and penalties for failure to strictly comply with applicable environmental laws or impose additional requirements for future compliance as a result of past failures. Any such actions taken with respect to us may increase our costs or harm our reputation. Further, we expect that increasingly stringent requirements will be imposed on homebuilders in the future. Environmental regulations can also have an adverse impact on the availability and price of certain raw materials such as lumber. Our communities in California are especially susceptible to restrictive government regulations and environmental laws, particularly surrounding water usage due to continuing drought conditions within that region.

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Adverse weather conditions, natural disasters, and other conditions could disrupt the development of our communities, which could harm our sales and results of operations.

Adverse weather conditions and natural disasters, such as hurricanes, tornadoes, earthquakes, floods, droughts, and wildfires, can have serious effects on our ability to develop our residential communities. We also may be affected by unforeseen engineering, environmental, or geological conditions or problems, including conditions or problems which arise on lands of third parties in the vicinity of our communities, but nevertheless negatively impact our communities. Any of these adverse events or circumstances could cause delays in or prevent the completion of, or increase the cost of, developing one or more of our residential communities and, as a result, could harm our sales and results of operations.

If we experience shortages or increased costs of labor and supplies or other circumstances beyond our control, there could be delays or increased costs in developing our communities, which could adversely affect our operating results.

Our ability to develop residential communities may be adversely affected by circumstances beyond our control, including work stoppages, labor disputes, and shortages of qualified trades people, such as carpenters, roofers, masons, electricians, and plumbers; changes in laws relating to union organizing activity; lack of availability of adequate utility infrastructure and services; our need to rely on local subcontractors who may not be adequately capitalized or insured; and shortages, delays in availability, or fluctuations in prices of building materials. Any of these circumstances could give rise to delays in the start or completion of, or could increase the cost of, developing one or more of our residential communities. We may not be able to recover these increased costs by raising our home prices because the price for each home is typically set months prior to its delivery pursuant to the agreement of sale with the home buyer. If that happens, our operating results could be harmed.

We are subject to one collective bargaining agreement that covers less than 2% of our employees. We have not experienced any work stoppages due to strikes by unionized workers, but we cannot make assurances that there will not be any work stoppages due to strikes or other job actions in the future. We engage independent contractors that employ non-unionized workers to construct our homes. At any given point in time, the employees of those subcontractors, who are not yet represented by a union, may be unionized.

Product liability claims and litigation and warranty claims that arise in the ordinary course of business may be costly, which could adversely affect our business.

As a home builder, we are subject to construction defect and home warranty claims arising in the ordinary course of business. These claims are common in the home building industry and can be costly. In addition, the costs of insuring against construction defect and product liability claims are high, and the amount of coverage offered by insurance companies is currently limited. There can be no assurance that this coverage will not be further restricted and become more costly. If the limits or coverages of our current and former insurance programs prove inadequate, or we are not able to obtain adequate, or reasonably priced, insurance against these types of claims in the future, or the amounts currently provided for future warranty or insurance claims are inadequate, we may experience losses that could negatively impact our financial results.

We record expenses and liabilities based on the estimated costs required to cover our self-insured liability under our insurance policies and estimated costs of potential claims and claim adjustment expenses that are above our coverage limits or that are not covered by our insurance policies. These estimated costs are based on an analysis of our historical claims and industry data, and include an estimate of claims incurred but not yet reported. The projection of losses related to these liabilities requires actuarial assumptions that are subject to variability due to uncertainties regarding construction defect claims relative to our markets and the types of product we build, insurance industry practices, and legal or regulatory actions and/or interpretations, among other factors. Key assumptions used in these estimates include claim frequencies, severities, and settlement patterns, which can occur over an extended period of time. In addition, changes in the frequency and severity of reported claims and the estimates to settle claims can impact the trends and assumptions used in the actuarial analysis, which could be material to our consolidated financial statements. Due to the degree of judgment required and the potential for variability in these underlying assumptions, our actual future costs could differ from those estimated, and the difference could be material to our consolidated financial statements.

Over the past several years, we have had a significant number of water intrusion claims related to homes we built in Pennsylvania and Delaware. See Note 7 – “Accrued Expenses” in Item 15(a)1 of this Form 10-K for additional information regarding these warranty charges.

Our cash flows and results of operations could be adversely affected if legal claims are brought against us and are not resolved in our favor.

Claims have been brought against us in various legal proceedings that have not had, and are not expected to have, a material adverse effect on our business or financial condition. Should such claims be resolved in an unfavorable manner or should additional claims be filed in the future, it is possible that our cash flows and results of operations could be adversely affected.

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We could be adversely impacted by the loss of key management personnel or if we fail to attract qualified personnel.

Our future success depends, to a significant degree, on the efforts of our senior management and our ability to attract qualified personnel. Our operations could be adversely affected if key members of our senior management leave our employ or we cannot attract qualified personnel to manage our business.

Our multi-unit buildings are subject to swings in delivery volume due to their extended construction time, levels of pre-sales, and quick delivery of units once buildings are complete.

Our quarterly operating results will fluctuate depending on the timing of completion of construction of our multi-unit buildings, levels of pre-sales and the relatively short delivery time of the pre-sold units once the building is completed. Depending on the number of multi-unit buildings that are completed in a quarter, our quarterly operating results may be uneven and may be marked by lower revenues and earnings in some quarters than in others.

Our quarterly operating results may fluctuate due to the seasonal nature of our business.

Our quarterly operating results fluctuate with the seasons; normally, a significant portion of our agreements of sale are entered into with customers in the winter and spring months. Construction of one of our traditional homes typically proceeds after signing the agreement of sale with our customer and can require seven months or more to complete. Weather-related problems may occur from time to time, delaying starts or closings or increasing costs and reducing profitability. In addition, delays in opening new communities or new sections of existing communities could have an adverse impact on home sales and revenues. Expenses are not incurred and recognized evenly throughout the year. Because of these factors, our quarterly operating results may be uneven and may be marked by lower revenues and earnings in some quarters than in others.

Increased domestic or international instability could have an adverse effect on our operations.

Increased domestic or international instability could adversely impact the economy and significantly reduce the number of new contracts signed, increase the number of cancellations of existing contracts, and/or increase our operating expenses, which could adversely affect our business.

Information technology failures and data security breaches could harm our business.

We use information technology and other computer resources to carry out important operational and marketing activities as well as maintain our business records, including information provided by our customers. Many of these resources are provided to us and/or maintained on our behalf by third-party service providers pursuant to agreements that specify certain security and service level standards. Our ability to conduct our business may be impaired if these resources are compromised, degraded, damaged or fail, whether due to a virus or other harmful circumstance, intentional penetration or disruption of our information technology resources by a third party, natural disaster, hardware or software corruption, failure or error (including a failure of security controls incorporated into or applied to such hardware or software), telecommunications system failure, service provider error or failure, intentional or unintentional personnel actions (including the failure to follow our security protocols), or lost connectivity to our networked resources. A significant and extended disruption in the functioning of these resources could impair our operations, damage our reputation and cause us to lose customers, sales and revenue.

In addition, breaches of our data security systems, including by cyber-attacks, could result in the unintended public disclosure or the misappropriation of our proprietary information or personal and confidential information, about our employees, consumers who view our homes, home buyers, mortgage loan applicants and business partners, requiring us to incur significant expense to address and resolve these kinds of issues. The release of confidential information may lead to identity theft and related fraud, litigation or other proceedings against us by affected individuals and/or business partners and/or by regulators, and the outcome of such proceedings, which could include penalties or fines, could have a material and adverse effect on our reputation, business, financial condition and results of operations. Depending on its nature, a particular breach or series of breaches of our systems may result in the unauthorized use, appropriation or loss of confidential or proprietary information on a one-time or continuing basis, which may not be detected for a period of time. In addition, the costs of maintaining adequate protection against such threats, as they develop in the future (or as legal requirements related to data security increase) could be material. As previously disclosed, in the third quarter of 2019, after learning that certain loan applicants who had submitted applications to our mortgage subsidiary during the year had experienced identity theft, we investigated these incidents, found that unauthorized access to applicant data had occurred on a service provider’s system, and took a number of steps to block such access and enhance the security of our customers’ information. In addition, we notified all potentially impacted mortgage loan applicants of this security incident, offered credit monitoring services, and notified applicable regulatory agencies. Despite these efforts, we cannot assure you that similar cyber incidents will not occur in the future. 

We are implementing a new enterprise resource planning system, and challenges with the implementation of the system may impact our business and operations.

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We are in the process of implementing a complex, multi-year implementation of a new enterprise resource planning system (“ERP”). The ERP implementation requires the integration of the new ERP with multiple new and existing information systems and business processes, and is designed to accurately maintain our books and records and provide information to our management team important to the operation of the business. Our ERP implementation will continue to require ongoing investment. If the system as it currently stands or after necessary investments does not result in our ability to maintain accurate books and records, our financial condition, results of operations and cash flows could be negatively impacted. Additionally, conversion from our old system to the ERP may cause inefficiencies until the ERP is stabilized and mature. The implementation of our ERP mandated new procedures and many new key controls over financial reporting. These procedures and controls are not yet mature in their operation and not fully tested by our internal auditors. If we are unable to adequately implement and maintain procedures and controls relating to our ERP, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

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ITEM 2. PROPERTIES

Headquarters

Our corporate office, which we lease from an unrelated party, contains approximately 200,000 square feet and is located in Horsham, Pennsylvania.

Manufacturing/Distribution Facilities

We own a manufacturing facility of approximately 225,000 square feet located in Morrisville, Pennsylvania; manufacturing facilities totaling approximately 150,000 square feet located in Emporia, Virginia; and a manufacturing facility of approximately 134,000 square feet located in Knox, Indiana. We lease, from an unrelated party, a facility of approximately 56,000 square feet located in Fairless Hills, Pennsylvania. In addition, we own a 34,000-square foot manufacturing, warehouse, and office facility in Culpepper, Virginia. At these facilities, we manufacture open wall panels, roof and floor trusses, and certain interior and exterior millwork to supply a portion of our construction needs. These facilities supply components used in our North, Mid-Atlantic, and portions of our South geographic segments. These operations also permit us to purchase wholesale lumber, sheathing, windows, doors, certain other interior and exterior millwork, and other building materials to supply to our communities. We believe that increased efficiencies, cost savings, and productivity result from the operation of these plants and from the wholesale purchase of materials.

ITEM 3. LEGAL PROCEEDINGS

We are involved in various claims and litigation arising principally in the ordinary course of business. We believe that adequate provision for resolution of all current claims and pending litigation has been made and that the disposition of these matters will not have a material adverse effect on our results of operations and liquidity or on our financial condition.

In March 2018, the Pennsylvania Attorney General informed the Company that it was conducting a review of our construction of stucco homes in Pennsylvania after January 1, 2005 and requested that we voluntarily produce documents and information. The Company has produced documents and information in response to this request and, in addition, has produced requested information and documents in response to a subpoena issued in the second quarter of fiscal 2019. Management cannot at this time predict the eventual scope or outcome of this matter.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Shares of our common stock are listed on the New York Stock Exchange (“NYSE”) under the symbol “TOL”. At December 19, 2019, there were approximately 536 record holders of our common stock.

Issuer Purchases of Equity Securities

During the three months ended October 31, 2019, we repurchased the following shares of our common stock:

Period	Total number of shares purchased (a)	Average price paid per share		Total number of shares purchased as part of a publicly announced plan or program (b)	Maximum number of shares that may yet be purchased under the plan or program (b)
	(in thousands)			(in thousands)	(in thousands)
August 1, 2019 to August 31, 2019	1,735	$	35.61	1,735	14,070
September 1, 2019 to September 30, 2019	114	$	36.25	114	13,956
October 1, 2019 to October 31, 2019	3	$	39.82	3	13,953
Total	1,852			1,852

(a) Our stock incentive plans permit us to withhold from the total number of shares that otherwise would be issued to a performance based restricted stock unit recipient or 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 recipient. During the three months ended October 31, 2019, we withheld 330 of the shares subject to performance based restricted stock units and restricted stock units to cover approximately $13,000 of income tax withholdings and we issued the remaining 909 shares to the recipients. The shares withheld are not included in the total number of shares purchased in the table above.

Our stock incentive plans also permit participants to exercise non-qualified stock options using a “net exercise” method. 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 October 31, 2019, no participant employed the net exercise method to exercise options.

(b) On December 11, 2019, our Board of Directors authorized the repurchase of 20 million shares of our common stock in open market transactions, privately negotiated transactions (including accelerated share repurchases), issuer tender offers or other financial arrangements or transactions for general corporate purposes, including to obtain shares for the Company’s equity award and other employee benefit plans. This new authorization terminated, effective December 11 2019, the existing authorization that had been in effect since December 12, 2018 and pursuant to which we had authority to acquire approximately 14 million shares as of October 31, 2019. The Board of Directors did not fix any expiration date for the current share repurchase program.

Subsequent to October 31, 2019, we repurchased approximately 3.6 million shares of our common stock at an average price of $39.58 per share, substantially all of which were purchased under the repurchase program authorized by our Board of Directors on December 11, 2019.

Our revolving credit agreement and term loan agreement each require us to maintain a minimum tangible net worth (as defined in the respective agreements), which limit the amount of share repurchases we may make. Based upon these provisions, our ability to repurchase our common stock was limited to approximately $3.53 billion as of October 31, 2019

Dividends

During fiscal 2019, we paid aggregate cash dividends of $0.44 per share to our shareholders. The payment of dividends is within the discretion of our Board of Directors and any decision to pay dividends in the future will depend upon an evaluation

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of a number of factors, including our results of operations, our capital requirements, our operating and financial condition, and any contractual limitations then in effect. Our revolving credit agreement and term loan agreement each require us to maintain a minimum tangible net worth (as defined in the respective agreement), which restricts the amount of dividends we may pay. At October 31, 2019, under the most restrictive provisions of our revolving credit agreement and term loan agreement, we could have paid up to approximately $2.32 billion of cash dividends.

Stockholder Return Performance Graph

The following graph and chart compares the five-year cumulative total return (assuming that an investment of $100 was made on October 31, 2014, and that dividends were reinvested) from October 31, 2014 to October 31, 2019, for (a) our common stock, (b) the S&P Homebuilding Index and (c) the S&P 500^®:

Comparison of 5 Year Cumulative Total Return Among Toll Brothers, Inc., the S&P 500^®, and

the S&P Homebuilding Index

October 31:	2014	2015	2016	2017	2018	2019
Toll Brothers, Inc.	100.00	112.58	85.88	144.98	107.12	128.07
S&P 500®	100.00	105.20	109.94	135.93	145.91	166.81
S&P Homebuilding	100.00	115.76	109.22	163.54	131.42	192.42

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ITEM 6. SELECTED FINANCIAL DATA

The following tables set forth selected consolidated financial and housing data at and for each of the five fiscal years in the period ended October 31, 2019. They should be read in conjunction with the Consolidated Financial Statements and Notes thereto listed in Item 15(a)1 of this Form 10-K beginning at page F-1 and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 7 of this Form 10-K.

Summary Consolidated Statements of Operations and Balance Sheets (amounts in thousands, except per share data):

Year ended October 31:	2019		2018		2017		2016		2015
Home Sales Revenues	$	7,080,379	$	7,143,258	$	5,815,058	$	5,169,508	$	4,171,248
Income before income taxes	$	787,170	$	933,916	$	814,311	$	589,027	$	535,562
Net income	$	590,007	$	748,151	$	535,495	$	382,095	$	363,167
Earnings per share:
Basic	$	4.07	$	4.92	$	3.30	$	2.27	$	2.06
Diluted	$	4.03	$	4.85	$	3.17	$	2.18	$	1.97
Weighted average number of shares outstanding:
Basic	145,008		151,984		162,222		168,261		176,425
Diluted	146,501		154,201		169,487		175,973		184,703
Cash dividends declared per share	$	0.44	$	0.41	$	0.24	$	—	$	—

At October 31:	2019		2018		2017		2016		2015
Cash, cash equivalents, and marketable securities	$	1,286,014	$	1,182,195	$	712,829	$	633,715	$	928,994
Inventory	$	7,873,048	$	7,598,219	$	7,281,453	$	7,353,967	$	6,997,516
Total assets	$	10,828,138	$	10,244,590	$	9,445,225	$	9,736,789	$	9,206,515
Debt:
Loans payable	$	1,111,449	$	686,801	$	637,416	$	871,079	$	1,000,439
Senior debt	2,659,898		2,861,375		2,462,463		2,694,372		2,689,801
Mortgage company loan facility	150,000		150,000		120,145		210,000		100,000
Total debt	$	3,921,347	$	3,698,176	$	3,220,024	$	3,775,451	$	3,790,240
Equity	$	5,118,693	$	4,768,912	$	4,537,090	$	4,235,202	$	4,228,079

Housing Data

Year ended October 31:	2019		2018		2017		2016		2015
Closings:
Number of homes	8,107		8,265		7,151		6,098		5,525
Value (in thousands)	$	7,080,379	$	7,143,258	$	5,815,058	$	5,169,508	$	4,171,248
Net contracts signed:
Number of homes	8,075		8,519		8,175		6,719		5,910
Value (in thousands)	$	6,710,937	$	7,604,265	$	6,828,277	$	5,649,570	$	4,955,579

At October 31:	2019		2018		2017		2016		2015
Backlog:
Number of homes	6,266		6,105		5,851		4,685		4,064
Value (in thousands)	$	5,257,091	$	5,522,523	$	5,061,517	$	3,984,065	$	3,504,004
Number of selling communities	333		315		305		310		288
Home sites:
Owned	36,567		32,503		31,341		34,137		35,872
Controlled	22,663		20,919		16,970		14,700		8,381
Total	59,230		53,422		48,311		48,837		44,253

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (“MD&A”)

This discussion and analysis is based on, should be read together with, and is qualified in its entirety by, the Consolidated Financial Statements and Notes thereto in Item 15(a)1 of this Form 10-K, beginning at page F-1.  It also should be read in conjunction with the disclosure under “Forward-Looking Statements” in Part I of this Form 10-K.

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 year refer to our fiscal years ended or ending October 31.

Unless otherwise stated in this report, 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. Backlog consists of homes under contract but not yet delivered to our home buyers (“backlog”). Backlog conversion represents the percentage of homes delivered in the period from backlog at the beginning of the period (“backlog conversion”).

This discussion and analysis does not address certain items in respect of fiscal 2017 in reliance on amendments to disclosure requirements adopted by the SEC in 2019. A discussion and analysis of fiscal 2017 may be found in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the fiscal year ended October 31, 2018, filed with the SEC on December 20, 2018.

OVERVIEW

Our Business

We design, build, market, sell, and arrange financing for an array of luxury residential single-family detached, attached home, master planned resort-style golf, and urban low-, mid-, and high-rise communities, principally on land we develop and improve, as we continue to pursue our strategy of broadening our product lines, price points and geographic footprint. We cater to luxury first-time, move-up, empty-nester, active-adult, affordable luxury and second-home buyers in the United States (“Traditional Home Building Product”), as well as urban and suburban renters. We also design, build, market, and sell urban low-, mid-, and high-rise condominiums through Toll Brothers City Living^® (“City Living”). At October 31, 2019, we were operating in 23 states, as well as in the District of Columbia.

In the five years ended October 31, 2019, we delivered 35,146 homes from 724 communities, including 8,107 homes from 426 communities in fiscal 2019. At October 31, 2019, we had 715 communities containing approximately 59,200 home sites that we owned or controlled through options.

We are developing several land parcels for master planned communities in which we intend to build homes on a portion of the lots and sell the remaining lots to other builders. Two of these master planned communities are being developed 100% by us, and the remaining communities are being developed through joint ventures with other builders or financial partners.

In addition to our residential for-sale business, we also develop and operate for-rent apartments through joint ventures. See the section entitled “Toll Brothers Apartment Living/Toll Brothers Campus Living” below.

We operate our own architectural, engineering, mortgage, title, land development, golf course development, and landscaping subsidiaries. We also operate our own security company, TBI Smart Home Solutions, which provides homeowners with home automation and a full range of technology options. In addition, we operate our own lumber distribution, house component assembly, and manufacturing operations.

We have investments in various unconsolidated entities. We have investments in joint ventures (i) to develop land for the joint venture participants and for sale to outside builders (“Land Development Joint Ventures”); (ii) to develop for-sale homes (“Home Building Joint Ventures”); (iii) to develop luxury for-rent residential apartments, commercial space and a hotel (“Rental Property Joint Ventures”); and (iv) to invest in distressed loans and real estate and provide financing and land banking for residential builders and developers for the acquisition and development of land and home sites (“Gibraltar Joint Ventures”).

Financial Highlights

In fiscal 2019, we recognized $7.08 billion of home sales revenues and net income of $590.0 million, as compared to $7.14 billion of revenues and net income of $748.2 million in fiscal 2018.

In fiscal 2019 and 2018, the value of net contracts signed was $6.71 billion (8,075 homes) and $7.60 billion (8,519 homes), respectively. The value of our backlog at October 31, 2019 was $5.26 billion (6,266 homes), as compared to our backlog at October 31, 2018 of $5.52 billion (6,105 homes).

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At October 31, 2019, we had $1.29 billion of cash and cash equivalents and approximately $1.73 billion available for borrowing under our $1.905 billion revolving credit facility (the “Revolving Credit Facility”) that matures in November 2024. At October 31, 2019, we had no outstanding borrowings under the Revolving Credit Facility and had outstanding letters of credit of approximately $177.9 million.

In fiscal 2017, our Board of Directors approved the initiation of quarterly cash dividends to shareholders. During fiscal 2019 and 2018, we paid aggregate cash dividends of $0.44 and $0.41 per share, respectively, to our shareholders. In December 2019, we declared a quarterly cash dividend of $0.11 which will be paid on January 24, 2020 to shareholders of record on the close of business on January 10, 2020.

At October 31, 2019, our total equity and our debt to total capitalization ratio were $5.12 billion and 0.44 to 1.00, respectively.

Acquisitions

As part of our strategy to expand our geographic footprint and product offerings, in fiscal 2019, we acquired substantially all of the assets and operations of Sharp Residential, LLC (“Sharp”) and Sabal Homes LLC (“Sabal”), for approximately $92.8 million and $69.6 million, respectively, in cash. Sharp operates in metropolitan Atlanta, Georgia; Sabal operates in the Charleston, Greenville, and Myrtle Beach, South Carolina markets. The assets acquired, based on our preliminary purchase price allocations, was primarily inventory, including approximately 2,550 home sites owned or controlled through land purchase agreements. In connection with these acquisitions, we assumed contracts to deliver 204 homes with an aggregate value of $96.1 million. The average price of undelivered homes at the dates of acquisitions was approximately $471,100. As a result of these acquisitions, our selling community count increased by 22 communities.

Our Business Environment and Current Outlook

Over the past several years, sales prices for both new and resale homes have generally increased, which has reduced housing affordability in many markets, including in California, where we have a significant presence. In addition, late in fiscal 2018 and in the first half of fiscal 2019, interest rates on mortgage loans increased. These conditions resulted in a moderation in demand for our homes late in fiscal 2018 into fiscal 2019, as well as margin compression on contracts signed during this period. Late in the spring of 2019, market conditions improved as interest rates on mortgage loans decreased and as home builders increased sales incentives to improve sales pace. Buyer demand for our homes steadily improved throughout the year, and, in the three months ended October 31, 2019, the number of contracts we signed had increased 18% in units and 12% in dollars compared to the three months ended October 31, 2018. For full year fiscal 2019, we signed 8,075 contracts for the sale of Traditional Home Building Product and City Living units with an aggregate value of $6.71 billion, compared to 8,519 contracts with an aggregate value of $7.60 billion in fiscal 2018.

As we enter fiscal 2020, we continue to see solid economic fundamentals underlying the housing market, as consumer confidence has been healthy, household formations have been strong, and there continues to be a limited supply of homes across most of our markets. As the nation's leading builder of luxury homes, we remain committed to meeting the demands of our discerning customers, who continue to pursue distinctive, high-quality homes in desirable locations. At the same time, we are strategically focused on broadening our portfolio through targeted expansion in high-potential markets and product-line diversification that includes increasing our presence in more affordable luxury communities. With a supportive economy as a backdrop, we expect this strategy to improve revenue growth and capital efficiency as we increase community count and seek to deliver more units with more rapid cycle times.

Tax Reform

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law, which changed many longstanding foreign and domestic corporate and individual tax rules, as well as rules pertaining to the deductibility of employee compensation and benefits. These changes include: (i) reducing the corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017; (ii) eliminating the corporate alternative minimum tax; (iii) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017; (iv) repeal of the domestic production activities deduction for tax years beginning after December 31, 2017; and (v) establishing new limits on the federal tax deductions individual taxpayers may take as a result of mortgage loan interest payments, and state and local tax payments, including real estate taxes.

As required under accounting rules, we remeasured our net deferred tax liability for the tax law change, which resulted in an income tax benefit of $35.5 million in fiscal 2018. See Note 8, “Income Taxes” in Notes to Condensed Consolidated Financial Statements in Item 15(a)1 of this Form 10-K for additional information regarding the impact of the Tax Act.

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Competitive Landscape

The home building business is highly competitive and fragmented. We compete with numerous home builders of varying sizes, ranging from local to national in scope, some of which have greater sales and financial resources than we do. Sales of existing homes, whether by a homeowner or by a financial institution that has acquired a home through a foreclosure, also provide competition. We compete primarily based on price, location, design, quality, service, and reputation. We believe our financial stability, relative to many others in our industry, provides us with a competitive advantage.

Land Acquisition and Development

Our business is subject to many risks because of the extended 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. In certain cases, we attempt to reduce some of these risks and improve our capital efficiency by utilizing one or more of the following methods: controlling land for future development through options, which enable us to obtain necessary governmental approvals 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.

During fiscal 2019 and 2018, we acquired control of approximately 13,900 and 13,400 home sites, respectively, net of options terminated and home sites sold. At October 31, 2019, we controlled approximately 59,200 home sites, as compared to approximately 53,400 home sites at October 31, 2018, and approximately 48,300 home sites at October 31, 2017. In addition, at October 31, 2019, we expect to purchase approximately 2,500 additional home sites from several land development joint ventures in which we have an interest, at prices not yet determined.

Of the approximately 59,200 total home sites that we owned or controlled through options at October 31, 2019, we owned approximately 36,600 and controlled approximately 22,600 through options. Of the 59,200 home sites, approximately 16,800 were substantially improved.

In addition, at October 31, 2019, our Land Development Joint Ventures owned approximately 10,100 home sites (including 130 home sites included in the 22,600 controlled through options), and our Home Building Joint Ventures owned approximately 100 home sites.

At October 31, 2019, we were selling from 333 communities, compared to 315 communities at October 31, 2018, and 305 communities at October 31, 2017.

Customer Mortgage Financing

We maintain relationships with a widely-diversified group of mortgage financial institutions, many of which are among the largest 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 these customers with financing.

We believe that our home buyers generally are, and should continue to be, well-positioned to secure mortgages due to their typically lower loan-to-value ratios and attractive credit profiles, as compared to the average home buyer.

Toll Brothers Apartment Living/Toll Brothers Campus Living

In addition to our residential for-sale business, we also develop and operate for-rent apartments through joint ventures. At October 31, 2019, we or joint ventures in which we have an interest controlled 56 land parcels as for-rent apartment projects containing approximately 18,300 units. These projects, which are located in multiple metropolitan areas throughout the country, are being operated, are being developed or will be developed with partners under the brand names Toll Brothers Apartment Living and Toll Brothers Campus Living.

In fiscal 2019, one of our Rental Property Joint Ventures, located in located in Phoenixville, Pennsylvania, sold its assets to an unrelated party for $77.8 million. From our investment in this joint venture, we received cash of $7.4 million and recognized a gain from this sale of $3.8 million in fiscal 2019. In fiscal 2018, three of our Rental Property Joint Ventures sold their assets to unrelated parties for $477.5 million. These joint ventures had owned, developed, and operated multifamily rental properties located in suburban Washington, D.C. and Westborough, Massachusetts, and a student housing community in College Park, Maryland. From our investment in these joint ventures, we received cash of $79.1 million and recognized gains from these sales of $67.2 million in fiscal 2018. The gains recognized from these sales are included in “Income from unconsolidated entities” in our Consolidated Statement of Operations and Comprehensive Income included in Item 15(a)1 of this Form 10-K.

At October 31, 2019, we had approximately 2,000 units in for-rent apartment projects that were occupied or ready for

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occupancy, 1,700 units in the lease-up stage, 8,400 units in the design phase or under development, and 6,200 units in the planning stage. Of the 18,300 units at October 31, 2019, 7,700 were owned by joint ventures in which we have an interest; approximately 4,400 were owned by us; and 6,200 were under contract to be purchased by us.

CONTRACTS AND BACKLOG

The aggregate value of net sales contracts signed decreased 11.7% in fiscal 2019, as compared to fiscal 2018. The value of net sales contracts signed was $6.71 billion (8,075 homes) in fiscal 2019 and $7.60 billion (8,519 homes) in fiscal 2018. The decrease in the aggregate value of net contracts signed in fiscal 2019, as compared to fiscal 2018, was due to decreases in the number of net contracts signed and average value of each contract signed of 5% and 7%, respectively. The decrease in the number of net contracts signed in fiscal 2019, as compared to fiscal 2018, was primarily due to decreased demand and a lack of inventory in certain locations in fiscal 2019, as compared to fiscal 2018, offset, in part, by an increase in the average number of selling communities and contracts signed in the metropolitan Atlanta, Georgia market and several markets in South Carolina in fiscal 2019 from the Sharp and Sabal acquisitions. The decrease in average price of net contracts signed in fiscal 2019, as compared to fiscal 2018, was principally due to a shift in the number of contracts signed to less expensive areas and/or products resulting in part from our strategy to broaden of our geographic footprint, product types and price points in fiscal 2019.

The value of our backlog at October 31, 2019, 2018, and 2017 was $5.26 billion (6,266 homes), $5.52 billion (6,105 homes), and $5.06 billion (5,851 homes), respectively. Approximately 93% of the homes in backlog at October 31, 2019 are expected to be delivered by October 31, 2020. The 4.8% decrease in the value of homes in backlog at October 31, 2019, as compared to October 31, 2018, was due to home deliveries with an aggregate value of $7.08 billion in fiscal 2019, offset, in part, by our signing net contracts with a value of $6.71 billion in fiscal 2019.

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

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CRITICAL ACCOUNTING POLICIES

We believe the following critical accounting policies reflect the more significant judgments and estimates used in the preparation of our consolidated financial statements.

Inventory

Inventory is stated at cost unless an impairment exists, in which case it is written down to fair value in accordance with U.S. generally accepted accounting principles (“GAAP”). In addition to direct land acquisition, land development, and home construction costs, costs also include interest, real estate taxes, and direct overhead related to development and construction, which are capitalized to inventory during periods beginning with the commencement of development and ending with the completion of construction. For those communities that have been temporarily closed, no additional capitalized interest is allocated to the community’s inventory until it reopens, and other carrying costs are expensed as incurred. Once a parcel of land has been approved for development and we open the community, it can typically take four or more years to fully develop, sell, and deliver all the homes in that community. Longer or shorter time periods are possible depending on the number of home sites in a community and the sales and delivery pace of the homes in a community. Our master planned communities, consisting of several smaller communities, may take up to 10 years or more to complete. Because our inventory is considered a long-lived asset under GAAP, we are required to regularly review the carrying value of each of our communities and write down the value of those communities when we believe the values are not recoverable.

Operating Communities: When the profitability of an operating community deteriorates, the sales pace declines significantly, or some other factor indicates a possible impairment in the recoverability of the asset, the asset is reviewed for impairment by comparing the estimated future undiscounted cash flow for the community to its carrying value. If the estimated future undiscounted cash flow is less than the community’s carrying value, the carrying value is written down to its estimated fair value. Estimated fair value is primarily determined by discounting the estimated future cash flow of each community. The impairment is charged to cost of home sales revenues in the period in which the impairment is determined. In estimating the future undiscounted cash flow of a community, we use various estimates such as (i) the expected sales pace in a community, based upon general economic conditions that will have a short-term or long-term impact on the market in which the community is located and on competition within the market, including the number of home sites available and pricing and incentives being offered in other communities owned by us or by other builders; (ii) the expected sales prices and sales incentives to be offered in a community; (iii) costs expended to date and expected to be incurred in the future, including, but not limited to, land and land development costs, home construction, interest, and overhead costs; (iv) alternative product offerings that may be offered in a community that will have an impact on sales pace, sales price, building cost, or the number of homes that can be built in a particular community; and (v) alternative uses for the property, such as the possibility of a sale of the entire community to another builder or the sale of individual home sites.

Future Communities: We evaluate all land held for future communities or future sections of operating communities, whether owned or optioned, to determine whether or not we expect to proceed with the development of the land as originally contemplated. This evaluation encompasses the same types of estimates used for operating communities described above, as well as an evaluation of the regulatory environment in which the land is located and the estimated probability of obtaining the necessary approvals, the estimated time and cost it will take to obtain those approvals, and the possible concessions that may be required to be given in order to obtain them. Concessions may include cash payments to fund improvements to public places such as parks and streets, dedication of a portion of the property for use by the public or as open space, or a reduction in the density or size of the homes to be built. Based upon this review, we decide (i) as to land under contract to be purchased, whether the contract will likely be terminated or renegotiated, and (ii) as to land we own, whether the land will likely be developed as contemplated or in an alternative manner, or should be sold. We then further determine whether costs that have been capitalized to the community are recoverable or should be written off. The write-off is charged to cost of home sales revenues in the period in which the need for the write-off is determined.

The estimates used in the determination of the estimated cash flows and fair value of both current and future communities are based on factors known to us at the time such estimates are made and our expectations of future operations and economic conditions. Should the estimates or expectations used in determining estimated fair value deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to current and future communities and such amounts could be material.

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We provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable in each of the three fiscal years ended October 31, 2019, 2018, and 2017, as shown in the table below (amounts in thousands):

	2019		2018		2017
Land controlled for future communities	$	11,285	$	2,820	$	1,949
Land owned for future communities	—		2,185		3,050
Operating communities	31,075		30,151		9,795
	$	42,360	$	35,156	$	14,794

The table below provides, for the periods indicated, the number of operating communities that we reviewed for potential impairment, the number of operating communities in which we recognized impairment charges, the amount of impairment charges recognized, and, as of the end of the period indicated, the fair value of those communities, net of impairment charges

($ amounts in thousands):

		Impaired operating communities
Three months ended:	Number of communities tested	Number of communities	Fair value of communities, net of impairment charges		Impairment charges recognized
Fiscal 2019:
January 31	49	5	$	37,282	$	5,785
April 30	64	6	$	36,159	17,495
July 31	69	3	$	5,436	1,100
October 31	71	7	$	18,910	6,695
					$	31,075
Fiscal 2018:
January 31	64	5	$	13,318	$	3,736
April 30	65	4	$	21,811	13,325
July 31	55	5	$	43,063	9,065
October 31	43	6	$	24,692	4,025
					$	30,151
Fiscal 2017:
January 31	57	2	$	8,372	$	4,000
April 30	46	6	$	25,092	2,935
July 31	53	4	$	5,965	1,360
October 31	51	1	$	6,982	1,500
					$	9,795

Income Taxes — Valuation Allowance

We assess the need for valuation allowances for deferred tax assets in each period based on whether it is more-likely-than-not that some portion of the deferred tax asset would not be realized. If, based on the available evidence, it is more-likely-than-not that such asset will not be realized, a valuation allowance is established against a deferred tax asset. The realization of a deferred tax asset ultimately depends on the existence of sufficient taxable income in either the carryback or carryforward periods under tax law. This assessment considers, among other matters, the nature, consistency, and magnitude of current and cumulative income and losses; forecasts of future profitability; the duration of statutory carryback or carryforward periods; our experience with operating loss and tax credit carryforwards being used before expiration; tax planning alternatives; and outlooks for the U.S. housing industry and broader economy. Changes in existing tax laws or rates could also affect our actual tax results. Due to uncertainties in the estimation process, particularly with respect to changes in facts and circumstances in future reporting periods, actual results could differ from the estimates used in our assessment that could have a material impact on our consolidated results of operations or financial position.

Our deferred tax assets consist principally of the timing of deductibility of accrued expenses, inventory impairments, inventory valuation differences, state tax net operating loss carryforwards, and stock-based compensation expense. In accordance with

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GAAP, we assess whether a valuation allowance should be established based on our determination of whether it was more likely than not that some portion or all of the deferred tax assets would not be realized. At October 31, 2019 and 2018, we determined that it was more-likely-than-not that our deferred tax assets would be realized. Accordingly, at October 31, 2019 and 2018, we did not have valuation allowances recorded against our federal or state deferred tax assets. During fiscal 2017, we reversed the remaining $32.2 million of state deferred tax valuation allowances.

We file tax returns in the various states in which we do business. Each state has its own statutes regarding the use of tax loss carryforwards. Some of the states in which we do business do not allow for the carryforward of losses, while others allow for carryforwards for five years to 20 years.

Revenue and Cost Recognition

Home sales revenues and cost recognition: Revenues and cost of revenues from home sales are recognized at the time each home is delivered and title and possession are transferred to the buyer. For the majority of our home closings, our performance obligation to deliver a home is satisfied in less than one year from the date a binding sale agreement is signed.

For our standard attached and detached homes, land, land development, and related costs, both incurred and estimated to be incurred in the future, are amortized to the cost of homes closed based upon the total number of homes to be constructed in each community. Any changes resulting from a change in the estimated number of homes to be constructed or in the estimated costs subsequent to the commencement of delivery of homes are allocated to the remaining undelivered homes in the community. Home construction and related costs are charged to the cost of homes closed under the specific identification method. For our master planned communities, the estimated land, common area development, and related costs, including the cost of golf courses, net of their estimated residual value, are allocated to individual communities within a master planned community on a relative sales value basis. Any changes resulting from a change in the estimated number of homes to be constructed or in the estimated costs are allocated to the remaining home sites in each of the communities of the master planned community.

For high-rise/mid-rise projects, land, land development, construction, and related costs, both incurred and estimated to be incurred in the future, are generally amortized to the cost of units closed based upon an estimated relative sales value of the units closed to the total estimated sales value. Any changes resulting from a change in the estimated total costs or revenues of the project are allocated to the remaining units to be delivered.

Forfeited Customer Deposits: Forfeited customer deposits are recognized in “Home sales revenues” in our Consolidated Statements of Operations and Comprehensive Income in the period in which we determine that the customer will not complete the purchase of the home and we have the right to retain the deposit.

Sales Incentives: In order to promote sales of our homes, we may offer our home buyers sales incentives. These incentives will vary by type of incentive and by amount on a community-by-community and home-by-home basis. Incentives are reflected as a reduction in home sales revenues. Incentives are recognized at the time the home is delivered to the home buyer and we receive the sales proceeds.

On November 1, 2018, we adopted Accounting Standards Codification (“ASC”) Topic 606 “Revenue from Contracts with Customers” (“ASC 606”), which supersedes the revenue recognition requirements in Accounting Standards Codification Topic 605, “Revenue Recognition,” and most industry-specific guidance. See Note 1, “Significant Accounting Policies” in Notes to Consolidated Financial Statements in Item 15(a)1 of this Form 10-K for additional information regarding the impact of the adoption of ASC 606.

Warranty and Self-Insurance

Warranty: We provide all of our home buyers with a limited warranty as to workmanship and mechanical equipment. We also provide many of our home buyers with a limited 10-year warranty as to structural integrity. We accrue 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. Adjustments to our warranty liabilities related to homes delivered in prior years are recorded in the period in which a change in our estimate occurs. Over the past several years, we have had a significant number of warranty claims related primarily to homes built in Pennsylvania and Delaware. See Note 7 – “Accrued Expenses” in Item 15(a)1 of this Form 10-K for additional information regarding these warranty charges.

Self-Insurance: We maintain, and require the majority of our subcontractors to maintain, general liability insurance (including construction defect and bodily injury coverage) and workers’ compensation insurance. These insurance policies protect us against a portion of our risk of loss from claims related to our home building activities, subject to certain self-insured retentions, deductibles and other coverage limits (“self-insured liability”). We also provide general liability insurance for our subcontractors in Arizona, California, Colorado, Nevada, Washington, and certain areas of Texas, where eligible subcontractors

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are enrolled as insureds under our general liability insurance policies in each community in which they perform work. For those enrolled subcontractors, we absorb their general liability associated with the work performed on our homes within the applicable community as part of our overall general liability insurance and our self-insurance through our captive insurance subsidiary.

We record expenses and liabilities based on the estimated costs required to cover our self-insured liability and the estimated costs of potential claims and claim adjustment expenses that are not covered by our insurance policies. These estimated costs are based on an analysis of our historical claims and industry data, and include an estimate of claims incurred but not yet reported (“IBNR”).

We engage a third-party actuary that uses our historical claim and expense data, input from our internal legal and risk management groups, as well as industry data, to estimate our liabilities related to unpaid claims, IBNR associated with the risks that we are assuming for our self-insured liability and other required costs to administer current and expected claims. These estimates are subject to uncertainty due to a variety of factors, the most significant being the long period of time between the delivery of a home to a home buyer and when a structural warranty or construction defect claim is made, and the ultimate resolution of the claim. Though state regulations vary, construction defect claims are reported and resolved over a prolonged period of time, which can extend for 10 years or longer. As a result, the majority of the estimated liability relates to IBNR. Adjustments to our liabilities related to homes delivered in prior years are recorded in the period in which a change in our estimate occurs.

The projection of losses related to these liabilities requires actuarial assumptions that are subject to variability due to uncertainties regarding construction defect claims relative to our markets and the types of product we build, insurance industry practices and legal or regulatory actions and/or interpretations, among other factors. Key assumptions used in these estimates include claim frequencies, severities and settlement patterns, which can occur over an extended period of time. In addition, changes in the frequency and severity of reported claims and the estimates to settle claims can impact the trends and assumptions used in the actuarial analysis, which could be material to our consolidated financial statements. Due to the degree of judgment required, and the potential for variability in these underlying assumptions, our actual future costs could differ from those estimated, and the difference could be material to our consolidated financial statements.

OFF-BALANCE SHEET ARRANGEMENTS

We also operate through a number of joint ventures. We earn construction and management fee income from many of these joint ventures. Our investments in these entities are generally accounted for using the equity method of accounting. We are a party to several joint ventures with unrelated parties to develop and sell land that is owned by the joint ventures. We recognize our proportionate share of the earnings from the sale of home sites to other builders, including our joint venture partners. We do not recognize earnings from the home sites we purchase from these ventures at the time of our purchase; instead, our cost basis in the home sites is reduced by our share of the earnings realized by the joint venture from those home sites.

At October 31, 2019, we had investments in these entities of $366.3 million, and were committed to invest or advance up to an additional $38.8 million to these entities if they require additional funding. At October 31, 2019, we had agreed to terms for the acquisition of 130 home sites from one Land Development Joint Ventures for an estimated aggregate purchase price of $10.8 million. In addition, we expect to purchase approximately 2,500 additional home sites over a number of years from several of these joint ventures; the purchase price of these home sites will be determined at a future date.

The unconsolidated entities in which we have investments generally finance their activities with a combination of partner equity and debt financing. In some instances, we and our partners have guaranteed debt of certain unconsolidated entities. These guarantees may include any or all of the following: (i) project completion guarantees, including any cost overruns; (ii) repayment guarantees, generally covering a percentage of the outstanding loan; (iii) carry cost guarantees, which cover costs such as interest. real estate taxes, and insurance; (iv) an environmental indemnity provided to the lender that holds the lender harmless from and against losses arising from the discharge of hazardous materials from the property and non-compliance with applicable environmental laws; and (v) indemnification of the lender from “bad boy acts” of the unconsolidated entity.

In some instances, the guarantees provided in connection with loans to an unconsolidated entity are joint and several. In these situations, we generally have a reimbursement agreement with our partner that provides that neither party is responsible for more than its proportionate share or agreed-upon share of the guarantee; however, if the joint venture partner does not have adequate financial resources to meet its obligations under the reimbursement agreement, we may be liable for more than our proportionate share.

We believe that as of October 31, 2019, in the event we become legally obligated to perform under a guarantee of the obligation of an unconsolidated entity due to a triggering event, the collateral should be sufficient to repay all or a significant portion of the obligation. If it is not, we and our partners would need to contribute additional capital to the entity. At October 31, 2019, we had guaranteed the debt of certain unconsolidated entities with loan commitments aggregating $1.53 billion, of which, if the

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full amount of the debt obligations were borrowed, we estimate $299.1 million to be our maximum exposure related to repayment and carry cost guarantees. At October 31, 2019, the unconsolidated entities had borrowed an aggregate of $1.14 billion, of which we estimate $239.6 million to be our maximum exposure related to repayment and carry cost guarantees. These maximum exposure estimates do not take into account any recoveries from the underlying collateral or any reimbursement from our partners.

For more information regarding these joint ventures, see Note 4, “Investments in Unconsolidated Entities” in the Notes to Consolidated Financial Statements in Item 15(a)1 of this Form 10-K.

The trends, uncertainties or other factors that impact our business and the industry in general also impact 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. In addition, for our unconsolidated entities that own, develop, and manage for-rent residential apartments, we review rental trends, expected future expenses, and expected future cash flows to determine estimated fair values of the properties. See “Critical Accounting Policies - Inventory” contained in this MD&A 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 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 recognized charges in connection with one Land Development Joint Venture of $1.0 million in fiscal 2019; two Land Development Joint Ventures of $6.0 million in fiscal 2018; and $2.0 million in fiscal 2017 at one Land Development Joint Venture.

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RESULTS OF OPERATIONS

The following table compares certain items in our Consolidated Statements of Operations and Comprehensive Income and other supplemental information for fiscal 2019 and 2018 ($ amounts in millions, unless otherwise stated). For more information regarding results of operations by operating segment, see “Segments” in this MD&A.

	Years ended October 31,
	2019			2018			% Change
Revenues:(1)
Home sales	$	7,080.4		$	7,143.3		(1	)%
Land sales	143.6			—
	7,224.0			7,143.3			1	%
Cost of revenues:(1)
Home sales	5,678.9			5,673.0			—	%
Land sales	129.7			—
	5,808.6			5,673.0			2	%
Selling, general and administrative	734.5			684.0			7	%
Income from operations	680.8			786.2			(13	)%
Other:
Income from unconsolidated entities	24.9			85.2			(71	)%
Other income - net	81.5			62.5			30	%
Income before income taxes	787.2			933.9			(16	)%
Income tax provision	197.2			185.8			6	%
Net income	$	590.0		$	748.2		(21	)%
Supplemental information:
Home sales cost of revenues as a percentage of home sales revenues	80.2		%	79.4		%
Land sales cost of revenues as a percentage of land sales revenues (1)	90.3		%
SG&A as a percentage of home sales revenues	10.4		%	9.6		%
Effective tax rate	25.1		%	19.9		%
Deliveries – units	8,107			8,265			(2	)%
Deliveries – average selling price (2)	$	873.4		$	864.3		1	%
Net contracts signed – value	$	6,710.9		$	7,604.3		(12	)%
Net contracts signed – units	8,075			8,519			(5	)%
Net contracts signed – average selling price (2)	$	831.1		$	892.6		(7	)%
	At October 31,
	2019			2018			% Change
Backlog – value	$	5,257.1		$	5,522.5		(5	)%
Backlog – units	6,266			6,105			3	%
Backlog – average selling price (2)	$	839.0		$	904.6		(7	)%

(1) On November 1, 2018, we adopted ASC 606. Upon adoption, land sale activity is presented as part of income from operations where previously it was included in "Other income - net." In fiscal 2018, we recognized land sales revenues and land sales cost of revenues of $134.3 million and $128.0 million, respectively. Further, retained customer deposits, which totaled $13.2 million in fiscal 2019, are included in “Home sales revenue” where previously they were included in “Other income – net.” In fiscal 2018, retained customer deposits were $8.9 million. Prior periods are not restated.

(2) $ amounts in thousands.

Note: Amounts may not add due to rounding.

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FISCAL 2019 COMPARED TO FISCAL 2018

HOME SALES REVENUES AND HOME SALES COST OF REVENUES

The decrease in home sales revenues in fiscal 2019, as compared to fiscal 2018, was attributable to a 2% decrease in the number of homes delivered, offset, in part, by a 1% increase in the average price of the homes delivered. The decrease in the number of homes delivered was primarily due to a moderation in demand, particularly in California, which we experienced beginning in the fourth quarter of fiscal 2018 through the third quarter of fiscal 2019. This decrease was partially offset by contracts we signed in the metropolitan Atlanta, Georgia market and several markets in South Carolina in fiscal 2019 from the Sharp and Sabal acquisitions and an increase in the number of selling communities, primarily in our South and West regions, in fiscal 2019, as compared to fiscal 2018. The increase in the average delivered home price was mainly due to price increases in homes delivered in California and the West region and a shift in the number of homes delivered to more expensive areas and/or products in California, New Jersey, Virginia, and the West region in fiscal 2019, as compared to fiscal 2018. These increases were partially offset by a shift in the number of homes delivered to less expensive areas in City Living in fiscal 2019, as compared to fiscal 2018 and a decrease in the number of homes delivered in California where home prices were higher, in fiscal 2019, as compared to fiscal 2018.

Home sales cost of revenues, as a percentage of homes sales revenues, in fiscal 2019 was 80.2%, as compared to 79.4% in fiscal 2018. The increase in fiscal 2019 was primarily due to higher land, land development, material and labor costs; a shift in the mix of our home sales revenues to lower margin products/areas; the recovery of approximately $9.7 million from litigation settlements in fiscal 2018; a $7.0 million benefit in fiscal 2018 from the reversal of an accrual related to an indemnification obligation related to the Shapell acquisition that expired; and higher inventory impairment charges in fiscal 2019, as compared to fiscal 2018. These increases were offset, in part, by a state reimbursement of previously expensed environmental clean-up costs received in fiscal 2019; a benefit in fiscal 2019 from the reversal of accruals for certain Home Owners Associations (“HOA”) turnovers that were no longer required; price increases in homes delivered in California and the West region; and lower interest expense in fiscal 2019 compared to fiscal 2018.

Interest cost in fiscal 2019 was $185.0 million or 2.6% of home sales revenues, as compared to $190.7 million or 2.7% of home sales revenues in fiscal 2018. We recognized inventory impairments and write-offs of $42.4 million or 0.6% of home sales revenues and $35.2 million or 0.5% of home sales revenues in fiscal 2019 and fiscal 2018, respectively.

LAND SALES REVENUES AND LAND SALES COST OF REVENUES

Our revenues from land sales generally consist of the following: (1) land sales to joint ventures in which we retain an interest; (2) lot sales to third-party builders within our master planned communities; and (3) bulk land sales to third parties of land we have decided no longer meets our development criteria. In fiscal 2019, we recognized a gain of $9.3 million from the sale of land to two newly formed Rental Property Joint Ventures in which we have interests of 25%.

Prior to the adoption of ASC 606, land sales activity was reported within “Other income – net” in our Condensed Consolidated Statements of Operations and Comprehensive Income. In fiscal 2018, we recognized land sales revenues and land sales cost of revenues of $134.3 million and $128.0 million, respectively.

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

SG&A spending increased by $50.5 million in fiscal 2019 compared to fiscal 2018. As a percentage of home sales revenues, SG&A was 10.4% and 9.6% in fiscal 2019 and 2018, respectively. The dollar increase in SG&A was due primarily to increased compensation costs due to a higher number of employees and normal compensation increases, increased sales and marketing costs, and costs related to the implementation of new enterprise information technology systems. The higher sales and marketing costs were the result of the increased number of selling communities, increased spending on advertising, and higher design studio operating costs. The increased number of employees was due primarily to the increase in the number of current and future selling communities.

INCOME FROM UNCONSOLIDATED ENTITIES

We recognize our proportionate share of the earnings and losses from the various unconsolidated entities in which we have an investment. Many of our unconsolidated entities are land development projects, high-rise/mid-rise condominium construction projects, or for-rent apartments projects, which do not generate revenues and earnings for a number of years during the development of the property. Once development is complete for land development projects and high-rise/mid-rise condominium construction projects, these unconsolidated entities will generally, over a relatively short period of time, generate revenues and earnings until all of the assets of the entity are sold. Further, once for-rent apartments projects are complete and stabilized, we may monetize a portion of these projects through a recapitalization or a sale of all or a portion of our ownership

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interest in the joint venture, resulting in an income producing event. Because of the long development periods associated with these entities, the earnings recognized from these entities may vary significantly from quarter to quarter and year to year.

The decrease in income from unconsolidated entities from $85.2 million in fiscal 2018 to $24.9 million in fiscal 2019, was due mainly to $67.2 million of gains recognized in fiscal 2018 from asset sales by three of our Rental Property Joint Ventures located in College Park, Maryland, Herndon, Virginia, and Westborough, Massachusetts, and an increase in losses in several Rental Property Join Ventures related to the commencement of operations and lease up activities in fiscal 2019, as compared to fiscal 2018. These decreases were offset, in part, by a $3.8 million gain recognized in fiscal 2019 from an asset sale by one of our Rental Property Joint Ventures located in Phoenixville, Pennsylvania; higher earnings from two of our Home Building Joint Ventures; and a $3.0 million decrease in impairment charges recognized in fiscal 2019 as compared to fiscal 2018.

OTHER INCOME - NET

The table below provides the components of “Other Income – net” for the years ended October 31, 2019 and 2018 (amounts in thousands):

	2019		2018
Income from ancillary businesses	$	53,568	$	25,692
Management fee income from home building unconsolidated entities, net	9,948		11,740
Income from land sales	—		6,331
Retained customer deposits	—		8,937
Other	17,986		9,760
Total other income – net	$	81,502	$	62,460

As a result of our adoption of ASC 606 on November 1, 2018, land sale activity is presented as part of income from operations where previously it was included in “Other income – net.” In addition, retained customer deposits are included in “Home sales revenue” where previously they were included in “Other income – net.” Prior periods are not restated. See Note 1, “Significant Accounting Policies – Recent Accounting Pronouncements” in Notes to Consolidated Financial Statements in this Form 10-K for additional information regarding the adoption of ASC 606.

The increase in income from ancillary businesses in fiscal 2019, as compared to fiscal 2018, was mainly due to gains recognized of $35.1 million from the sale of seven golf clubs in fiscal 2019 and lower losses incurred in our apartment living operations in fiscal 2019, as compared to fiscal 2018, partially offset by a $10.7 million gain from a bulk sale of security monitoring accounts by our home control solutions business in fiscal 2018.

Management fee income from home building unconsolidated entities presented above primarily represents fees earned by our City Living and Traditional Home Building operations. In addition, in fiscal 2019 and 2018, our apartment living operations earned fees from unconsolidated entities of $11.9 million and $7.5 million, respectively. Fees earned by our apartment living operations are included in income from ancillary businesses.

The increase in “other” in fiscal 2019 was principally due to higher interest income earned in fiscal 2019 compared to fiscal 2018, offset, in part, by $2.6 million received in fiscal 2018 from the resolution of a matter involving defective floor joists.

INCOME BEFORE INCOME TAXES

In fiscal 2019, we reported income before income taxes of $787.2 million or 10.9% of revenues, as compared to $933.9 million, or 13.1% of revenues in fiscal 2018.

INCOME TAX PROVISION

We recognized a $197.2 million income tax provision in fiscal 2019. Based upon the federal statutory rate of 21.0% for fiscal 2019, our federal tax provision would have been $165.3 million. The difference between the tax provision recognized and the tax provision based on the federal statutory rate was mainly due to the provision for state income taxes of $37.9 million and an increase in unrecognized tax benefits of $2.2 million, offset, in part, by the reversal of $5.3 million of previously accrued tax provisions on uncertain tax positions that were no longer necessary due to the expiration of the statute of limitations and a benefit of $2.1 million from excess tax benefits related to stock-based compensation.

We recognized a $185.8 million income tax provision in fiscal 2018. Based upon the blended federal statutory rate of 23.3% for fiscal 2018, our federal tax provision would have been $217.9 million. The difference between the tax provision recognized and the tax provision based on the federal statutory rate was mainly due to tax law changes of $38.7 million; a benefit of $18.2 million related to the utilization of domestic production activities deductions; the reversal of $4.7 million of previously accrued

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tax provisions on uncertain tax positions that were no longer necessary due to the expiration of the statute of limitations and settlements with certain taxing jurisdictions; a benefit of $4.2 million from excess tax benefits related to stock-based compensation; and $15.2 million of permanent and other differences, which primarily relates to the recognition of Section 45L energy credits and tax planning transactions that benefited the Company’s state net operating loss carryforwards, offset, in part, by the provision for state income taxes of $47.1 million. See Note 8, “Income Taxes” in Item 15(a)1 of this Form 10-K for additional information regarding the impact of the Tax Act.

CAPITAL RESOURCES AND LIQUIDITY

Funding for our business has been, and continues to be, provided principally by cash flow from operating activities before inventory additions, unsecured bank borrowings, and the public debt markets.

Fiscal 2019

At October 31, 2019, we had $1.29 billion of cash and cash equivalents and approximately $1.73 billion available for borrowing under our Revolving Credit Facility.

Cash provided by operating activities during fiscal 2019 was $437.7 million. It was generated primarily from $590.0 million of net income plus $26.2 million of stock-based compensation, $72.1 million of depreciation and amortization, $42.4 million of inventory impairments and write-offs, and a net deferred tax benefit of $102.8 million; offset, in part, by a $40.2 million increase in inventory; an increase of $185.3 million in receivables, prepaid assets, and other assets; an increase of $45.6 million in mortgage loans held for sale; and a decrease of $64.5 million in accounts payable and accrued expenses.

Cash used in investing activities during fiscal 2019 was $75.9 million, primarily related to $162.4 million used to acquired Sharp and Sabal; $87.0 million for the purchase of property and equipment; and $56.6 million used to fund investments in unconsolidated entities. This activity was offset, in part, by $151.1 million of cash received as returns on our investments in unconsolidated entities, foreclosed real estate, and distressed loans and proceeds of $79.6 million of cash received from sales of golf club properties and an office buildings in several separate transactions with unrelated third parties.

We used $258.5 million of cash from financing activities in fiscal 2019, primarily for the repayment of $600.0 million of senior notes; the repurchase of $233.5 million of our common stock; and payment of $63.6 million of dividends on our common stock, offset, in part, by the net proceeds of $396.4 million from the issuance of $400.0 million aggregate principal amount of 3.80% Senior Notes due 2029; borrowings of $227.4 million of other loans payable, net of new repayments; and the proceeds of $17.4 million from our stock-based benefit plans.

Fiscal 2018

At October 31, 2018, we had $1.18 billion of cash and cash equivalents on hand and approximately $1.13 billion available for borrowing under our Revolving Credit Facility.

Cash provided by operating activities during fiscal 2018 was $588.2 million. It was generated primarily from $748.2 million of net income plus $28.3 million of stock-based compensation, $25.3 million of depreciation and amortization, $35.2 million of inventory impairments and write-offs; and an increase of $57.9 million in accounts payable and accrued expenses; offset, in part, by a $143.6 million increase in inventory; an increase of $99.6 million in receivables, prepaid assets, and other assets; an increase of $38.9 million in mortgage loans held for sale; and a net deferred tax benefit of $21.9 million.

Cash provided by investing activities during fiscal 2018 was $81.3 million. The cash generated by investing activities was primarily related to $138.0 million of cash received as returns on our investments in unconsolidated entities, foreclosed real estate, and distressed loans, offset, in part, by $28.2 million for the purchase of property and equipment and $27.5 million used to fund investments in unconsolidated entities.

We used $214.3 million of cash from financing activities in fiscal 2018, primarily for repurchase of $503.2 million of our common stock; the repayment of $89.2 million of other loans payable, net of new borrowings; and payment of $61.7 million of dividends on our common stock, offset, in part, by the net proceeds of $396.5 million from the issuance of $400.0 million aggregate principal amount of 4.35% Senior Notes due 2028, the borrowings of $29.9 million on our mortgage company loan facility, net of new borrowings; and the proceeds of $13.4 million from our stock-based benefit plans.

Other

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 own a supply of several years of home sites, we do not need to buy home sites immediately to replace those that we deliver. In addition, we generally do not begin construction of our detached homes until we have a signed contract with the home buyer. Should our business decline, we believe that our inventory levels would decrease as we complete and

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deliver the homes under construction but do not commence construction of as many new homes, as we complete the improvements on the land we already own, and as we sell and deliver the speculative homes that are currently in inventory, resulting in additional cash flow from operations. In addition, we might delay, decrease, or curtail our acquisition of additional land, which would further reduce our inventory levels and cash needs. At October 31, 2019, we owned or controlled through options approximately 59,200 home sites, as compared to approximately 53,400 at October 31, 2018; and approximately 48,300 at October 31, 2017. Of the approximately 59,200 home sites owned or controlled through options at October 31, 2019, we owned approximately 36,600. Of our owned home sites at October 31, 2019, significant improvements were completed on approximately 16,800 of them.

At October 31, 2019, the aggregate purchase price of land parcels under option and purchase agreements was approximately $2.36 billion (including $10.8 million of land to be acquired from joint ventures in which we have invested). Of the $2.36 billion of land purchase commitments, we had paid or deposited $168.8 million and, if we acquire all of these land parcels, we will be required to pay an additional $2.19 billion. The purchases of these land parcels are scheduled over the next several years. In addition, we expect to purchase approximately 2,500 additional home sites over a number of years from several of these joint ventures. 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.

During the past several years, we have made a number of investments in unconsolidated entities related to the acquisition and development of land for future home sites, the construction of luxury for-sale condominiums, and for-rent apartments. Our investment activities related to investments in and distributions of investments from unconsolidated entities are contained in the Consolidated Statements of Cash Flows under “Net cash (used in) provided by investing activities,” At October 31, 2019, we had investments in these entities of $366.3 million, and were committed to invest or advance up to an additional $38.8 million to these entities if they require additional funding. At October 31, 2019, we had purchase commitments to acquire land for apartment developments of approximately $280.2 million, of which we had outstanding deposits in the amount of $13.7 million. We intend to develop these apartment projects in joint ventures with unrelated parties in the future.

On October 31, 2019, we amended and restated our existing $1.295 billion Revolving Credit Agreement, dated as of May 19, 2016, to, among other things: (i) increase the aggregate revolving credit commitments under the Revolving Credit Facility from $1.295 billion to $1.905 billion; (ii) extend the Revolving Credit Facility termination date from May 19, 2021 to November 1, 2024; (iii) modify the pricing for outstanding commitments, borrowings and letters of credit under the facility, as set forth in the pricing schedule that is attached to the Revolving Credit Facility; (iv) modify the accordion feature to permit the aggregate revolving credit commitments under the Revolving Credit Facility to be increased to up to $2.5 billion, subject to certain conditions and availability of bank commitments; and (iv) modify certain provisions relating to financial maintenance and negative covenants. Under the terms of the amended and restated Revolving Credit Facility, our maximum leverage ratio (as defined in the credit agreement) may not exceed 1.75 to 1.00 and we are required to maintain a minimum tangible net worth (as defined in the credit agreement) of no less than approximately $2.70 billion. Under the terms of the Revolving Credit Facility, at October 31, 2019, our leverage ratio was approximately 0.50 to 1.00 and our tangible net worth was approximately $5.02 billion. Based upon the minimum tangible net worth requirement, our ability to repurchase our common stock was limited to approximately $3.53 billion as of October 31, 2019. At October 31, 2019, we had no outstanding borrowings under the Revolving Credit Facility and had outstanding letters of credit of approximately $177.9 million.

On October 31, 2018, we had a $800.0 million, five-year senior unsecured term loan facility (the “Term Loan Facility”) with a syndicate of banks. On October 31, 2019, we entered into an amendment to the Term Loan Facility to, among other things, extend the maturity date from November 1, 2023 to November 1, 2024, with no principal payments being required before the maturity date.

We believe that we will have adequate resources and sufficient access to the capital markets and external financing sources to continue to fund our current operations and meet our contractual obligations. Due to the uncertainties 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.

INFLATION

The long-term impact of inflation on us is manifested in increased costs for land, land development, construction, and overhead. We generally enter into contracts to acquire land a significant period of time before development and sales efforts begin. Accordingly, to the extent land acquisition costs are fixed, subsequent increases or decreases in the sales prices of homes will affect our profits. Because the sales price of each of our homes is fixed at the time a buyer enters into a contract to purchase a home and because we generally contract to sell our homes before we begin construction, any inflation of costs in excess of those anticipated may result in lower gross margins. We generally attempt to minimize that effect by entering into

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fixed-price contracts with our subcontractors and material suppliers for specified periods of time, which generally do not exceed one year.

In general, housing demand is adversely affected by increases in interest rates and housing costs. Interest rates, the length of time that land remains in inventory, and the proportion of inventory that is financed affect our interest costs. If we are unable to raise sales prices enough to compensate for higher costs, or if mortgage interest rates increase significantly, affecting prospective buyers’ ability to adequately finance home purchases, our home sales revenues, gross margins, and net income could be adversely affected. Increases in sales prices, whether the result of inflation or demand, may affect the ability of prospective buyers to afford new homes.

CONTRACTUAL OBLIGATIONS

The following table summarizes our estimated contractual payment obligations at October 31, 2019 (amounts in millions):

	2020		2021 – 2022		2023 – 2024		Thereafter		Total
Senior notes (a)	$	127.8	$	658.1	$	818.2	$	1,770.2	$	3,374.3
Loans payable (a)	121.3		144.2		99.7		940.7		1,305.9
Mortgage company loan facility (a)(b)	152.8								152.8
Operating lease obligations	15.4		22.7		14.5		218.2		270.8
Purchase obligations (c)	1,541.9		1,010.2		263.5		92.5		2,908.1
Retirement plans (d)	13.4		13.4		14.7		62.6		104.1
	$	1,972.6	$	1,848.6	$	1,210.6	$	3,084.2	$	8,116.0

(a) Amounts include estimated annual interest payments until maturity of the debt. Of the amounts indicated, $2.66 billion of the senior notes, $1.11 billion of loans payable, $150.0 million of the mortgage company loan facility, and $31.3 million of accrued interest were recorded on our October 31, 2019 Consolidated Balance Sheet.

(b) In December 2019, we amended the mortgage company warehousing agreement to, among other things, extend the maturity date to December 4, 2020.

(c) Amounts represent our expected acquisition of land under purchase agreements and the estimated remaining amount of the contractual obligation for land development agreements secured by letters of credit and surety bonds. Of the total amount indicated, $14.6 million was recorded on our October 31, 2019 Consolidated Balance Sheet.

(d) Amounts represent our obligations under our deferred compensation plan, supplemental executive retirement plans and our 401(k) salary deferral savings plans. Of the total amount indicated, $82.7 million was recorded on our October 31, 2019 Consolidated Balance Sheet.

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SEGMENTS

We operate in two segments: Traditional Home Building and City Living, our urban development division. Within Traditional Home Building, we operate in five geographic segments around the United States: (1) the North, consisting of Connecticut, Illinois, Massachusetts, Michigan, New Jersey, and New York; (2) the Mid-Atlantic, consisting of Delaware, Maryland, Pennsylvania, and Virginia; (3) the South, consisting of Florida, Georgia, North Carolina, South Carolina, and Texas; (4) the West, consisting of Arizona, Colorado, Idaho, Nevada, Oregon, Utah, and Washington, and (5) California.

The following tables summarize information related to revenues, net contracts signed, and income (loss) before income taxes by segment for fiscal years 2019, 2018, and 2017. Information related to backlog and assets by segment at October 31, 2019 and 2018, has also been provided.

Units Delivered and Revenues:

	Fiscal 2019 Compared to Fiscal 2018
	Revenues ($ in millions)							Units Delivered				Average Delivered Price ($ in thousands)
	2019			2018		% Change		2019	2018	% Change		2019		2018		% Change
Traditional Home Building:
North	$	923.3		$	975.7	(5	)%	1,325	1,453	(9	)%	$	696.8	$	671.5	4	%
Mid-Atlantic	1,112.8			1,141.1		(2	)%	1,708	1,800	(5	)%	651.5		633.9		3	%
South	1,244.6			1,045.4		19	%	1,725	1,391	24	%	721.5		751.5		(4	)%
West	1,418.0			1,451.4		(2	)%	1,965	2,130	(8	)%	721.6		681.4		6	%
California	2,129.5			2,208.7		(4	)%	1,180	1,322	(11	)%	1,804.7		1,670.7		8	%
Traditional Home Building	6,828.2			6,822.3		—	%	7,903	8,096	(2	)%	864.0		842.7		3	%
City Living	253.2			321.0		(21	)%	204	169	21	%	1,241.2		1,899.4		(35	)%
Other	(1.0		)
Total homes sales revenue	7,080.4			$	7,143.3	(1	)%	8,107	8,265	(2	)%	$	873.4	$	864.3	1	%
Land sales revenue	143.6
Total revenue	$	7,224.0		$	7,143.3

Net Contracts Signed:

	Fiscal 2019 Compared to Fiscal 2018
	Net Contract Value ($ in millions)						Net Contracted Units				Average Contracted Price ($ in thousands)
	2019		2018		% Change		2019	2018	% Change		2019		2018		% Change
Traditional Home Building:
North	$	910.1	$	928.1	(2	)%	1,303	1,334	(2	)%	$	698.5	$	695.7	—	%
Mid-Atlantic	1,137.8		1,158.3		(2	)%	1,725	1,799	(4	)%	659.6		643.9		2	%
South	1,177.3		1,132.7		4	%	1,705	1,502	14	%	690.5		754.1		(8	)%
West	1,705.7		1,510.5		13	%	2,303	2,133	8	%	740.6		708.2		5	%
California	1,555.3		2,596.9		(40	)%	889	1,568	(43	)%	1,749.5		1,656.2		6	%
Traditional Home Building	6,486.2		7,326.5		(11	)%	7,925	8,336	(5	)%	818.4		878.9		(7	)%
City Living	224.7		277.8		(19	)%	150	183	(18	)%	1,498.3		1,518.0		(1	)%
Total	$	6,710.9	$	7,604.3	(12	)%	8,075	8,519	(5	)%	$	831.1	$	892.6	(7	)%

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Backlog at October 31:

	October 31, 2019 Compared to October 31, 2018
	Backlog Value ($ in millions)						Backlog Units				Average Backlog Price ($ in thousands)
	2019		2018		% Change		2019	2018	% Change		2019		2018		% Change
Traditional Home Building:
North	$	757.1	$	768.5	(1	)%	1,076	1,098	(2	)%	$	703.6	$	699.9	1	%
Mid-Atlantic	785.1		758.8		3	%	1,159	1,142	1	%	677.4		664.4		2	%
South	930.0		903.2		3	%	1,339	1,166	15	%	694.6		774.6		(10	)%
West	1,321.2		1,031.1		28	%	1,738	1,400	24	%	760.2		736.5		3	%
California	1,314.1		1,883.3		(30	)%	842	1,133	(26	)%	1,560.7		1,662.2		(6	)%
Traditional Home Building	5,107.5		5,344.9		(4	)%	6,154	5,939	4	%	829.9		900.0		(8	)%
City Living	149.6		177.6		(16	)%	112	166	(33	)%	1,335.6		1,069.7		25	%
Total	$	5,257.1	$	5,522.5	(5	)%	6,266	6,105	3	%	$	839.0	$	904.6	(7	)%

Income (Loss) Before Income Taxes ($ amounts in millions):

	2019			2018			% Change
Traditional Home Building:
North	$	55.9		$	56.5		(1	)%
Mid-Atlantic	64.8			90.6			(28	)%
South	117.5			110.3			7	%
West	170.4			213.3			(20	)%
California	452.4			494.3			(8	)%
Traditional Home Building	861.0			965.0			(11	)%
City Living	70.1			78.1			(10	)%
Corporate and other	(143.9		)	(109.2		)	(32	)%
Total	$	787.2		$	933.9		(16	)%

“Corporate and other” is comprised principally of general corporate expenses such as 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 our Rental Property Joint Ventures and Gibraltar Joint Ventures.

Total Assets ($ amounts in millions):

	At October 31,
	2019		2018
Traditional Home Building:
North	$	917.5	$	970.9
Mid-Atlantic	1,177.4		1,130.4
South	1,412.5		1,237.7
West	2,057.4		1,580.2
California	2,339.7		2,734.0
Traditional Home Building	7,904.5		7,653.2
City Living	529.5		516.2
Corporate and other	2,394.1		2,075.2
Total	$	10,828.1	$	10,244.6

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“Corporate and other” is comprised principally of cash and cash equivalents, restricted cash, income taxes receivable, investments in properties held for rental apartments, expected recoveries from insurance carriers and suppliers, our Gibraltar investments and operations, manufacturing facilities, and our mortgage and title subsidiaries.

Traditional Home Building

North

	Year ended October 31,
	2019			2018			% Change
Units Delivered and Home Sales Revenues:
Home sales revenues ($ in millions)	$	923.3		$	975.7		(5	)%
Units delivered	1,325			1,453			(9	)%
Average delivered price ($ in thousands)	$	696.8		$	671.5		4	%
Net Contracts Signed:
Net contract value ($ in millions)	$	910.1		$	928.1		(2	)%
Net contracted units	1,303			1,334			(2	)%
Average contracted price ($ in thousands)	$	698.5		$	695.7		—	%
Home sales cost of revenues as a percentage of home sales revenues	85.4		%	86.7		%
Income before income taxes ($ in millions)	$	55.9		$	56.5		(1	)%
Number of selling communities at October 31,	50			57			(12	)%

The decrease in the number of homes delivered in fiscal 2019 was mainly due to a decrease in the number of homes in backlog at October 31, 2018, as compared to the number of homes in backlog at October 31, 2017. The increase in the average price of homes delivered in fiscal 2019 was due primarily to a shift in the number of homes delivered to more expensive areas and/or products in fiscal 2019, as compared to fiscal 2018, particularly in Michigan and New Jersey.

The decrease in the number of net contracts signed in fiscal 2019, as compared to fiscal 2018, was principally due to a decrease in demand in fiscal 2019, as compared to fiscal 2018.

The decrease in income before income taxes in fiscal 2019 was principally attributable to lower home sales cost of revenues, as a percentage of home sale revenues, offset, in part, by lower earnings from decreased home sales revenues and higher SG&A costs in fiscal 2019, as compared to fiscal 2018. The decrease in home sales cost of revenues, as a percentage of home sales revenues, in fiscal 2019 was primarily due to a shift in product mix/areas to higher-margin areas and lower inventory impairment charges in fiscal 2019, as compared to fiscal 2018.

Inventory impairment charges were $17.5 million in fiscal 2019, as compared to $19.7 million in fiscal 2018. During fiscal 2019, we determined that the pricing assumptions used in prior impairment reviews for one operating community located in Illinois needed to be reduced primarily because weaker-than-expected market conditions drove a lack of improvement and/or a decrease in customer demand for homes in the community. As a result of the reduction in expected sales prices, we determined that this community was impaired. Accordingly, the carrying value was written down in the fiscal 2019 period to its estimated fair value, which resulted in a charge to income before income taxes of $6.6 million. In addition, with respect to two communities located in Illinois, we decided to sell their remaining lots in bulk sales rather than sell and construct homes. As a result, the carrying values of these communities were written down to their estimated fair values, which resulted in a charge to income before income taxes of $4.9 million in fiscal 2019.

During fiscal 2018, we determined that the pricing assumptions used in prior impairment reviews for one operating community located in Connecticut needed to be reduced, primarily due to a lack of improvement and/or a decrease in customer demand as a result of weaker than expected market conditions. As a result of the reduction in expected sales prices, we determined that this community was impaired. Accordingly, its carrying value was written down to its estimated fair value, which resulted in a charge to income before income taxes of $12.0 million in fiscal 2018. In addition, with respect to two communities located in Illinois and Minnesota, we decided to sell their remaining lots in bulk sales rather than sell and construct homes. As a result, the carrying values of these communities were written down to their estimated fair values, which resulted in a charge to income before income taxes of $4.4 million in fiscal 2018.

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Mid-Atlantic

	Year ended October 31,
	2019			2018			% Change
Units Delivered and Home Sales Revenues:
Home sales revenues ($ in millions)	$	1,112.8		$	1,141.1		(2	)%
Units delivered	1,708			1,800			(5	)%
Average delivered price ($ in thousands)	$	651.5		$	633.9		3	%
Net Contracts Signed:
Net contract value ($ in millions)	$	1,137.8		$	1,158.3		(2	)%
Net contracted units	1,725			1,799			(4	)%
Average contracted price ($ in thousands)	$	659.6		$	643.9		2	%
Home sales cost of revenues as a percentage of home sales revenues	86.3		%	84.4		%
Income (loss) before income taxes ($ in millions)	$	64.8		$	90.6		(28	)%
Number of selling communities at October 31,	56			62			(10	)%

The decrease in the number of homes delivered in fiscal 2019 was mainly due to lower backlog conversion in fiscal 2019, as compared to fiscal 2018. The increase in the average price of homes delivered in fiscal 2019 was primarily due to a shift in the number of homes delivered to more expensive areas and/or products in fiscal 2019, as compared to fiscal 2018.

The decrease in the number of net contracts signed in fiscal 2019 was principally due to a decrease in the average number of selling communities in fiscal 2019, as compared to fiscal 2018. The increase in the average value of each contract signed in fiscal 2019 was mainly due to shifts in the number of contracts signed to more expensive areas and/or products in fiscal 2019, as compared to fiscal 2018.

The decrease in income before income taxes in fiscal 2019 was mainly due to increases in home sales costs of revenues, as a percentage of home sale revenues; lower earnings on decreased home sales revenues; and increases in SG&A costs in fiscal 2019, as compared to fiscal 2018. This decrease was partially offset by a $4.0 million impairment charge recognized in fiscal 2018 related to one Land Development Joint Venture located in Maryland. The increase in home sales costs of revenues, as a percentage of home sale revenues, in fiscal 2019 was primarily due to higher material and labor costs in fiscal 2019, as compared to fiscal 2018.

Inventory impairment charges were $8.5 million and $9.8 million in fiscal 2019 and 2018, respectively. During our review of operating communities for impairment in fiscal 2019, we determined that the pricing assumptions used in prior impairment reviews for two operating communities located in Pennsylvania needed to be reduced primarily because weaker-than-expected market conditions drove a lack of improvement and/or a decrease in customer demand for homes in the community. As a result of the reduction in expected sales prices, we determined that these communities were impaired. Accordingly, the carrying value of these communities were written down to their estimated fair values, which resulted in a charge to income before income taxes of $8.0 million in fiscal 2019.

In fiscal 2018, we decided to sell a portion of the lots in a bulk sale in one community located in Maryland, primarily due to increases in site costs and a lack of improvement in customer demand as a result of weaker than expected market conditions. The carrying value of this community was written down to its estimated fair value resulting in a charge to income before income taxes in fiscal 2018 of $6.7 million.

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South

	Year ended October 31,
	2019			2018			% Change
Units Delivered and Home Sale Revenues:
Home sales revenues ($ in millions)	$	1,244.6		$	1,045.4		19	%
Units delivered	1,725			1,391			24	%
Average delivered price ($ in thousands)	$	721.5		$	751.5		(4	)%
Net Contracts Signed:
Net contract value ($ in millions)	$	1,177.3		$	1,132.7		4	%
Net contracted units	1,705			1,502			14	%
Average contracted price ($ in thousands)	$	690.5		$	754.1		(8	)%
Home sales cost of revenues as a percentage of home sales revenues	84.2		%	83.3		%
Income before income taxes ($ in millions)	$	117.5		$	110.3		7	%
Number of selling communities at October 31,	93			69			35	%

The increase in the number of homes delivered in fiscal 2019 was mainly due to the delivery of 137 homes in metropolitan Atlanta, Georgia and several markets in South Carolina from the Sharp and Sabal acquisitions; an increase in the number of homes in backlog at October 31, 2018, as compared to the number of homes in backlog at October 31, 2017; and higher backlog conversion in fiscal 2019, as compared to fiscal 2018. The decrease in the average price of homes delivered in fiscal 2019 was primarily due to a shift in the number of homes delivered to less expensive areas and/or products in fiscal 2019, as compared to fiscal 2018.

The increase in the number of net contracts signed in fiscal 2019 was mainly due to contracts we signed in the metropolitan Atlanta, Georgia market and several markets in South Carolina in fiscal 2019 and an increase in the number of selling communities, primarily in Florida, in fiscal 2019, as compared to fiscal 2018, offset, in part, by decreased demand. The decrease in the average value of each contract signed in fiscal 2019 was mainly due to shifts in the number of contracts signed to less expensive areas and/or products in fiscal 2019, as compared to fiscal 2018.

The increase in income before income taxes in fiscal 2019 was principally due to higher earnings from increased home sales revenues, offset, in part, by higher cost of home sales revenues, as a percentage of home sales revenues. The increase in home sales cost of revenues, as a percentage of home sales revenues, in fiscal 2019 was primarily due to higher material and labor costs and a shift in product mix/areas to lower-margin areas in fiscal 2019, as compared to fiscal 2018.

Inventory impairment charges were $9.5 million and $3.8 million in fiscal 2019 and 2018, respectively. During fiscal 2019, we decided to sell the remaining lots in a bulk sale in one community located in Texas rather than sell and construct homes, primarily due to a lack of improvement and/or a decrease in customer demand. As a result, the carrying value of this community was written down to its estimated fair value, which resulted in a charge to income before income taxes of $1.5 million in fiscal 2019. In addition, we terminated three purchase agreements to acquire land parcels in Texas and forfeited the deposit balances outstanding. We wrote off the deposits resulting in a charges to income before income taxes of $4.2 million in fiscal 2019.

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West

	Year ended October 31,
	2019			2018			% Change
Units Delivered and Home Sales Revenues:
Home sales revenues ($ in millions)	$	1,418.0		$	1,451.4		(2	)%
Units delivered	1,965			2,130			(8	)%
Average delivered price ($ in thousands)	$	721.6		$	681.4		6	%
Net Contracts Signed:
Net contract value ($ in millions)	$	1,705.7		$	1,510.5		13	%
Net contracted units	2,303			2,133			8	%
Average contracted price ($ in thousands)	$	740.6		$	708.2		5	%
Home sales cost of revenues as a percentage of home sales revenues	79.3		%	78.2		%
Income before income taxes ($ in millions)	$	170.4		$	213.3		(20	)%
Number of selling communities at October 31,	94			83			13	%

The decrease in the number of homes delivered in fiscal 2019 was mainly due to lower backlog conversion in fiscal 2019, as compared to fiscal 2018. The increase in the average price of homes delivered in fiscal 2019 was primarily due to a shift in the number of homes delivered to more expensive areas and/or products and price increases in fiscal 2019, as compared to fiscal 2018.

The increase in the number of net contracts signed in fiscal 2019 was principally due to an increase in the average number of selling communities in fiscal 2019, as compared to fiscal 2018, and an increase in demand, primarily in the fourth quarter of fiscal 2019. The increase in the average value of each contract signed in fiscal 2019 was mainly due to a shift in the number of contracts signed to more expensive areas and/or products in fiscal 2019, as compared to fiscal 2018.

The decrease in income before income taxes in fiscal 2019 was due mainly to higher SG&A costs; higher home sales cost of revenues, as a percentage of home sales revenues; and lower earnings from decreased revenues, in fiscal 2019, as compared to fiscal 2018. The increase in home sales cost of revenues, as a percentage of home sales revenues, was primarily due to a shift in product mix/areas to lower-margin areas in fiscal 2019, as compared to fiscal 2018.

California

	Year ended October 31,
	2019			2018			% Change
Units Delivered and Home Sales Revenues:
Home sales revenues ($ in millions)	$	2,129.5		$	2,208.7		(4	)%
Units delivered	1,180			1,322			(11	)%
Average delivered price ($ in thousands)	$	1,804.7		$	1,670.7		8	%
Net Contracts Signed:
Net contract value ($ in millions)	$	1,555.3		$	2,596.9		(40	)%
Net contracted units	889			1,568			(43	)%
Average contracted price ($ in thousands)	$	1,749.5		$	1,656.2		6	%
Home sales cost of revenues as a percentage of home sales revenues	74.0		%	72.9		%
Income before income taxes ($ in millions)	452.4			494.3			(8	)%
Number of selling communities at October 31,	36			38			(5	)%

The decrease in the number of homes delivered in fiscal 2019 was mainly due to lower backlog conversion in fiscal 2019, as compared to fiscal 2018, offset, in part, by the increased number of homes in backlog at October 31, 2018, as compared to the

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number of homes in backlog at October 31, 2017. The increase in the average price of homes delivered in 2019 was primarily due to a shift in the number of homes delivered to more expensive areas and/or products and increased selling prices of homes delivered in fiscal 2019, as compared to fiscal 2018.

The decrease in the number of net contracts signed in fiscal 2019 was principally due to a decrease in demand and reduced availability of lots in fiscal 2019, as compared to fiscal 2018. The increase in the average value of each contract signed in fiscal 2019 was mainly due to a shift in the number of contracts signed to more expensive areas and/or products in fiscal 2019, as compared to fiscal 2018.

The decrease in income before income taxes in fiscal 2019 was primarily due to lower earnings from the decreased home sales revenues and higher home sales cost of revenues, as a percentage of home sales revenues, in fiscal 2019, as compared to fiscal 2018, partially offset by lower SG&A costs in fiscal 2019. The increase in home sales cost of revenues, as a percentage of home sales revenues, was primarily due to a shift in product mix/areas to lower-margin areas in fiscal 2019, as compared to fiscal 2018, and a $7.0 million benefit in fiscal 2018 from the reversal of an accrual related to the Shapell acquisition that has expired.

City Living

	Year ended October 31,
	2019			2018			% Change
Units Delivered and Home Sales Revenues:
Home sales revenues ($ in millions)	$	253.2		$	321.0		(21	)%
Units delivered	204			169			21	%
Average delivered price ($ in thousands)	$	1,241.2		$	1,899.4		(35	)%
Net Contracts Signed:
Net contract value ($ in millions)	$	224.7		$	277.8		(19	)%
Net contracted units	150			183			(18	)%
Average contracted price ($ in thousands)	$	1,498.3		$	1,518.0		(1	)%
Home sales cost of revenues as a percentage of home sales revenues	70.6		%	75.1		%
Income before income taxes ($ in millions)	$	70.1		$	78.1		(10	)%
Number of selling communities at October 31,	4			6			(33	)%

The increase in the number of homes delivered in fiscal 2019 was mainly attributable to homes delivered at a building located in Jersey City, New Jersey, which commenced deliveries in the fourth quarter of fiscal 2018. The decrease in the average price of homes delivered in fiscal 2019 was primarily due to a shift in the number of homes delivered to less expensive buildings in fiscal 2019, as compared to fiscal 2018, offset, in part, by the delivery of two homes in fiscal 2019 in a building located in New York City, New York, where the average price was $13.6 million. In fiscal 2019 and 2018, 7% and 37%, respectively, of the units delivered were located in New York City, where average home prices were higher.

The decrease in the number of net contracts signed in fiscal 2019 was primarily due to a decrease in demand. The decrease in the average sales price of net contracts signed in fiscal 2019, as compared to fiscal 2018, was principally due to a shift to less expensive units in fiscal 2019, as compared to fiscal 2018, offset, in part, by the sale of two home in fiscal 2019 period in a building located in New York City, New York, where the average price was $13.6 million.

The decrease in income before income taxes in fiscal 2019 was mainly due to lower earnings from decreased home sales revenues and a decrease in earnings from our investments in unconsolidated entities, in fiscal 2019, as compared to fiscal 2018. This decrease was partially offset by lower home sales cost of revenues, as a percentage of home sale revenues, in fiscal 2019. The lower home sales cost of revenues, as a percentage of home sale revenues, in fiscal 2019 was due primarily to a shift in the number of homes delivered to buildings with higher margins; a state reimbursement of previously expensed environmental clean-up costs received in fiscal 2019; a benefit in fiscal 2019 from the reversal of accruals for certain HOA turnovers that were no longer required; and lower interest costs in fiscal 2019, as compared to fiscal 2018. These decreases were offset, in part, by impairment charges of $4.8 million in fiscal 2019. As a result of decreased demand, we wrote down the carrying value of units in two buildings, located in Maryland and New York, New York, to their estimated fair value, which resulted in impairment charges of $4.8 million in fiscal 2019.

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In fiscal 2019, earnings from our investments in unconsolidated entities decreased $2.8 million as compared to fiscal 2018. This decrease was primarily due a shift in the number of homes delivered to buildings with lower margins and a shift in the number of homes delivered in joint ventures where our ownership percentage was lower in fiscal 2019, as compared to fiscal 2018. The tables below provide information related to deliveries, home sales revenues and net contracts signed by our City Living Home Building Joint Ventures, for the periods indicated, and the related backlog for the dates indicated ($ amounts in millions):

	Year ended October 31,
	2019 Units	2018 Units	2019 $		2018 $
Deliveries and home sales revenues	147	14	$	330.8	$	65.7
Net contracts signed	39	102	$	128.1	$	245.6

	At October 31,
	2019 Units	2018 Units	2019 $		2018 $
Backlog	26	134	$	76.3	$	279.0

Corporate and other

In fiscal 2019 and 2018, loss before income taxes was $143.9 million and $109.2 million, respectively. The increase in the loss before income taxes in fiscal 2019 was principally attributable to $67.2 million of gains recognized in fiscal 2018 from asset sales by our Rental Property Joint Ventures located in College Park, Maryland, Herndon, Virginia, and Westborough, Massachusetts; a $10.7 million gain from a bulk sale of security monitoring accounts by our home control solutions business in fiscal 2018; an increase in losses in several Rental Property Joint Ventures due to the commencement of operations and lease up activities in fiscal 2019; and higher SG&A costs in fiscal 2019 compared to fiscal 2018. These increases were partially offset by gains recognized of $35.1 million from the sale of seven golf clubs in fiscal 2019; a $9.3 million gain recognized from the sales of land to newly formed Rental Property Joint Ventures in fiscal 2019; a $3.8 million gain recognized in fiscal 2019 from an asset sale by a Rental Property Joint Venture in Phoenixville, Pennsylvania; and higher interest income in fiscal 2019.

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ITEM 7A. 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 affect 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 following table shows our debt obligations by scheduled maturity, weighted-average interest rates, and estimated fair value as of October 31, 2019 ($ amounts in thousands):

	Fixed-rate debt				Variable-rate debt (a)
Fiscal year of maturity	Amount			Weighted- average interest rate (%)	Amount			Weighted- average interest rate (%)
2020	$	84,096		4.33%	$	150,000		3.68%
2021	52,713			3.89%	150			1.26%
2022	437,668			5.85%	150			1.26%
2023	421,461			4.42%	150			1.26%
2024	290,595			5.41%	150			1.26%
Thereafter	1,684,410			4.52%	812,910			3.06%
Bond discounts, premiums, and deferred issuance costs, net	(9,978		)		(3,128		)
Total	$	2,960,965		4.77%	$	960,382		3.16%
Fair value at October 31, 2019	$	3,121,573			$	963,510

(a) Based upon the amount of variable-rate debt outstanding at October 31, 2019, and holding the variable-rate debt balance constant, each 1% increase in interest rates would increase the interest incurred by us by approximately $9.6 million per year.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The financial statements, listed in Item 15(a)(1) beginning on page F-1 of this report are incorporated herein by reference.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not applicable.

ITEM 9A. CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness of Disclosure 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, (“Exchange Act”), as of the end of the period covered by this report (“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 SEC’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.

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Management’s Annual Report on Internal Control Over Financial Reporting and Attestation Report of the Independent Registered Public Accounting Firm

Management’s Annual Report on Internal Control Over Financial Reporting and the attestation report of our independent registered public accounting firm on internal control over financial reporting on pages F-1 and F-2, respectively, are incorporated herein by reference.

The Company is in the process of evaluating the existing controls and procedures of each of Sharp Residential, LLC and Sabal Homes LLC and integrating their controls into the Company’s internal control over financial reporting. In accordance with SEC Staff guidance permitting a company to exclude an acquired business from management’s assessment of the effectiveness of internal control over financial reporting for the year in which the acquisition is completed, we have excluded each of Sharp Residential, LLC and Sabal Homes LLC from the Company’s assessment of the effectiveness of internal control over financial reporting as of October 31, 2019. These companies represented less than 2% of the Company’s total assets as of October 31, 2019 and less than 1% of the Company’s revenues for the fiscal year ended October 31, 2019.  The Company's acquisition of each of these companies is discussed in Note 2 to its Consolidated Financial Statements for fiscal 2019.

Changes in Internal Control Over Financial Reporting

We are in the process of a complex implementation of a new ERP system that affects many of our financial processes. This project is expected to improve the efficiency and effectiveness of certain financial and business transaction processes, as well as the underlying systems environment. The new ERP system will be a significant component of our internal control over financial reporting. Other than the ERP system implementation noted above, there has not been any change in our internal control over financial reporting (as that term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during our quarter ended October 31, 2019, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.  For a discussion of risks related to the implementation of our new ERP system, see “Risk Factors - We are implementing a new enterprise resource planning system, and challenges with the system may impact our business and operations.”

ITEM 9B. OTHER INFORMATION

Not applicable.

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The following table includes information with respect to all persons serving as executive officers as of the date of this

Form 10-K. All executive officers serve at the pleasure of our Board of Directors.

Name	Age	Positions
Douglas C. Yearley, Jr.	59	Chairman of the Board, President and Chief Executive Officer
James W. Boyd	63	Executive Vice President and Co-Chief Operating Officer
Robert Parahus	56	Executive Vice President and Co-Chief Operating Officer
Martin P. Connor	55	Senior Vice President and Chief Financial Officer

Douglas C. Yearley, Jr. joined us in 1990 as assistant to the Chief Executive Officer with responsibility for land acquisitions. He has been an officer since 1994, holding the position of Senior Vice President from January 2002 until November 2005, the position of Regional President from November 2005 until November 2009, and the position of Executive Vice President from November 2009 until June 2010, when he was promoted to Chief Executive Officer. On November 1, 2018, he was appointed to the position of Chairman of the Board and Chief Executive Officer and was appointed President effective November 1, 2019. Mr. Yearley was elected a Director in June 2010.

James W. Boyd initially joined us in 1983 and remained until 1985, when he launched his own independent development company, before rejoining the Company in 1993 to serve in various positions, including Regional President from 2005 through October 31, 2019. He was appointed to the position of Executive Vice President and Co-Chief Operating Officer effective November 1, 2019, with responsibility for the Company’s western region. Prior to his appointment to Executive Vice President and Co-Chief Operating Officer, Mr. Boyd oversaw the Company’s homebuilding operations in California, Nevada and Idaho.

Robert Parahus joined us in 1986 and served in various positions with us, including Regional President from 2006 through October 31, 2019. He was appointed to the position of Executive Vice President and Co-Chief Operating Officer effective November 1, 2019, with responsibility for the Company’s eastern region. Prior to his appointment to Executive Vice President and Co-Chief Operating Officer, Mr. Parahus oversaw the Company’s homebuilding operations in New Jersey, New York, Connecticut, Massachusetts and Florida, and had oversight responsibility for Toll Integrated Systems, the Company’s building component manufacturing operations.

Martin P. Connor joined us as Vice President and Assistant Chief Financial Officer in December 2008 and was appointed a Senior Vice President in December 2009. Mr. Connor was appointed to his current position of Senior Vice President and Chief Financial Officer in September 2010. From June 2008 to December 2008, Mr. Connor was President of Marcon Advisors LLC, a finance and accounting consulting firm that he founded. From October 2006 to June 2008, Mr. Connor was Chief Financial Officer and Director of Operations for O’Neill Properties, a diversified commercial real estate developer in the Mid-Atlantic area. Prior to October 2006, he spent over 20 years at Ernst & Young LLP as an Audit and Advisory Business Services Partner, responsible for the real estate practice for Ernst & Young LLP in the Philadelphia marketplace. During the period from 1998 to 2005, he served on the Toll Brothers, Inc. engagement.

The other information required by this item will be included in the “Election of Directors” and “Corporate Governance” sections of our Proxy Statement for the 2020 Annual Meeting of Stockholders (the “2020 Proxy Statement”).

Code of Ethics

We have adopted a Code of Ethics for the Principal Executive Officer and Senior Financial Officers (“Code of Ethics”) that applies to our principal executive officer, principal financial officer, principal accounting officer, controller, and persons performing similar functions designated by our Board of Directors. The Code of Ethics is available on our Internet website at www.TollBrothers.com under “Investor Relations – Corporate Governance.” If we were to amend or waive any provision of our Code of Ethics, we intend to satisfy our disclosure obligations with respect to any such waiver or amendment by posting such information on our Internet website set forth above rather than by filing a Form 8-K.

Indemnification of Directors and Officers

Our Certificate of Incorporation and Bylaws provide for indemnification of our directors and officers. We have also entered into individual indemnification agreements with each of our directors.

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ITEM 11. EXECUTIVE COMPENSATION

The information required by this item will be included in the “Executive Compensation” section of our 2020 Proxy Statement and is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required in this item will be included in the “Voting Securities and Beneficial Ownership” and “Equity Compensation Plan Information” sections of our 2020 Proxy Statement and is incorporated herein by reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS; DIRECTOR INDEPENDENCE

The information required in this item will be included in the “Corporate Governance” and “Certain Relationships and Transactions” sections of our 2020 Proxy Statement and is incorporated herein by reference.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required in this item will be included in the “Ratification of the Re-Appointment of Independent Registered Public Accounting Firm” section of the 2020 Proxy Statement and is incorporated herein by reference.

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a) Financial Statements and Financial Statement Schedules

	Page
1. Financial Statements
Management’s Annual Report on Internal Control Over Financial Reporting	F-1
Reports of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets	F-6
Consolidated Statements of Operations and Comprehensive Income	F-7
Consolidated Statements of Changes in Equity	F-8
Consolidated Statements of Cash Flows	F-9
Notes to Consolidated Financial Statements	F-10

2. Financial Statement Schedules

None

Financial statement schedules have been omitted because either they are not applicable or the required information is included in the financial statements or notes hereto.

(b) Exhibits

The following exhibits are included with this report or incorporated herein by reference:

Exhibit Number	Description
3.1	Second Restated Certificate of Incorporation of the Registrant, dated September 8, 2005, is hereby incorporated by reference to Exhibit 3.1 of the Registrant’s Form 10-Q for the quarter ended July 31, 2005.
3.2	Certificate of Amendment of the Second Restated Certificate of Incorporation of the Registrant, filed with the Secretary of State of the State of Delaware, is hereby incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 22, 2010.

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Exhibit Number	Description
3.3	Certificate of Amendment of the Second Restated Certificate of Incorporation of the Registrant, dated as of March 16, 2011, is hereby incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 18, 2011.
3.4	Certificate of Amendment of the Second Restated Certificate of Incorporation of the Registrant, dated as of March 8, 2016, is hereby incorporated by reference to Annex B to the Registrant’s definitive proxy statement on Schedule 14A its 2016 Annual Meeting of Stockholders filed with the Securities and Exchange Commission on February 2, 2016.
3.5	Bylaws of the Registrant, as Amended and Restated June 11, 2008, are hereby incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 13, 2008.
3.6	Amendment to the By-laws of the Registrant, dated as of September 24, 2009, is hereby incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 24, 2009.
3.7	Amendment to the By-laws of the Registrant, dated as of June 15, 2011, is hereby incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 16, 2011.
3.8	Amendment to the By-laws of the Registrant, dated as of January 20, 2016, is hereby incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on January 20, 2016.
3.9	Amendment to the By-laws of the Registrant, dated as of September 20, 2016, is hereby incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 20, 2016.
4.1	Specimen Stock Certificate is hereby incorporated by reference to Exhibit 4.1 of the Registratant’s Form 10-K for the year ended October 31, 2017.
4.2	Indenture, dated as of February 7, 2012, among Toll Brothers Finance Corp., the Registrant and the other guarantors named therein and The Bank of New York Mellon, as trustee, is hereby incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 7, 2012.
4.3	Authorizing Resolutions, dated as of January 31, 2012, relating to the $300,000,000 principal amount of 5.875% Senior Notes due 2022 of Toll Brothers Finance Corp. guaranteed on a senior basis by the Registrant and certain of its subsidiaries, is hereby incorporated by reference Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 7, 2012.
4.4	Form of Global Note for Toll Brothers Finance Corp.’s 5.875% Senior Notes due 2022 is hereby incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 7, 2012.
4.5	Authorizing Resolutions, dated as of April 3, 2013, relating to the $300,000,000 principal amount of 4.375% Senior Notes due 2023 of Toll Brothers Finance Corp. guaranteed on a senior basis by the Registrant and certain of its subsidiaries, is hereby incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on April 10, 2013.
4.6	Authorizing Resolutions, dated as of May 8, 2013, relating to the $100,000,000 principal amount of 4.375% Senior Notes due 2023 of Toll Brothers Finance Corp. guaranteed on a senior basis by Toll Brothers, Inc. and certain of its subsidiaries is hereby incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 13, 2013.
4.7	Form of Global Note for Toll Brothers Finance Corp.’s 4.375% Senior Notes due 2023 is hereby incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on April 10, 2013.
4.8	Authorizing Resolutions, dated as of November 21, 2013, relating to the $250,000,000 principal amount of 5.625% Senior Notes due 2024 of Toll Brothers Finance Corp. guaranteed on a senior basis by the Registrant and certain of its subsidiaries, is hereby incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 21, 2013.

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Exhibit Number	Description
4.9	Form of Global Note for Toll Brothers Finance Corp.’s 5.625% Senior Notes due 2024 is hereby incorporated by reference to Exhibit 4.5 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 21, 2013.
4.10	Authorizing Resolutions, dated as of October 30, 2015, relating to the $350,000,000 principal amount of 4.875% Senior Notes due 2025 of Toll Brothers Finance Corp. guaranteed on a senior basis by the Registrant and certain of its subsidiaries, is hereby incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 30, 2015.
4.11	Form of Global Note for Toll Brothers Finance Corp.’s 4.875% Senior Notes due 2025 is hereby incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 30, 2015.
4.12	Authorizing Resolutions, dated as of March 10, 2017, relating to the $300,000,000 principal amount of 4.875% Senior Notes due 2027 of Toll Brothers Finance Corp. guaranteed on a senior basis by the Registrant and certain of its subsidiaries, is hereby incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 10, 2017.
4.13	Form of Global Note for Toll Brothers Finance Corp.’s 4.875% Senior Notes due 2027 is hereby incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 10, 2017.
4.14	Authorizing Resolutions, dated as of June 12, 2017, relating to the $150,000,000 principal amount of 4.875% Senior Notes due 2027 of Toll Brothers Finance Corp. guaranteed on a senior basis by the Registrant and certain of its subsidiaries, is hereby incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 12, 2017.
4.15	Form of Global Note for Toll Brothers Finance Corp.’s 4.875% Senior Notes due 2027 is hereby incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 12, 2017
4.16	Authorizing Resolution, dated as of January 22, 2018, relating to the $400,000,000 aggregate principal amount of 4.350% Senior Notes due 2028 of Toll Brothers Finance Corp., guaranteed on a senior basis by Toll Brothers, Inc. and certain of its subsidiaries, is hereby incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on January 22, 2018.
4.17	Form of Global Note for the Issuer’s 4.350% Senior Notes due 2028 is hereby incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on January 22, 2018.
4.18	Authorizing Resolution, dated as of September 12, 2019, relating to the $400,000,000 aggregate principal amount of 3.800% Senior Notes due 2029 of Toll Brothers Finance Corp., guaranteed on a senior basis by Toll Brothers, Inc. and certain of its subsidiaries, is hereby incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 12, 2019.
4.19	Form of Global Note for the Issuer’s 3.800% Senior Notes due 2029 is hereby incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 12, 2019.
4.20	First Supplemental Indenture dated as of April 27, 2012, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.3 of the Registrant’s Form 10-Q for the quarter ended April 30, 2012.
4.21	Second Supplemental Indenture dated as of April 30, 2013, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.4 of the Registrant’s Form 10-Q for the quarter ended April 30, 2013.
4.22	Third Supplemental Indenture dated as of April 30, 2014, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.1 of the Registrant’s Form 10-Q for the quarter ended April 30, 2014.

51

Exhibit Number	Description
4.23	Fourth Supplemental Indenture dated as of July 31, 2014, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.1 of the Registrant’s Form 10-Q for the quarter ended July 31, 2014.
4.24	Fifth Supplemental Indenture dated as of October 31, 2014, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.55 of the Registrant’s Form 10-K for the year ended October 31, 2014.
4.25	Sixth Supplemental Indenture dated as of January 30, 2015, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.3 of the Registrant’s Form 10-Q for the quarter ended January 31, 2015.
4.26	Seventh Supplemental Indenture dated as of April 30, 2015, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.3 of the Registrant’s Form 10-Q for the quarter ended April 30, 2015.
4.27	Eighth Supplemental Indenture dated as of October 30, 2015, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.34 of the Registrant’s Form 10-K for the year ended October 31, 2015.
4.28	Ninth Supplemental Indenture dated as of January 29, 2016, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.2 of the Registrant’s Form 10-Q for the quarter ended January 31, 2016.
4.29	Tenth Supplemental Indenture dated as of April 29, 2016, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.2 of the Registrant’s Form 10-Q for the quarter ended April 30, 2016.
4.30	Eleventh Supplemental Indenture dated as of October 31, 2016, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.41 of the Registrant’s Form 10-K for the year ended October 31, 2016.
4.31	Twelfth Supplemental Indenture dated as of October 31, 2016, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.42 of the Registrant’s Form 10-K for the year ended October 31, 2016.
4.32	Thirteenth Supplemental Indenture dated as of January 31, 2017, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.2 of the Registrant’s Form 10-Q for the quarter ended January 31, 2017.
4.33	Fourteenth Supplemental Indenture dated as of April 28, 2017, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.2 of the Registrant’s Form 10-Q for the quarter ended April 30, 2017.
4.34	Fifteenth Supplemental Indenture dated as of July 31, 2017, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.2 of the Registrant’s Form 10-Q for the quarter ended July 31, 2017.
4.35	Sixteenth Supplemental Indenture dated as of October 31, 2017, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.55 of the Registrant’s Form 10-K for the year ended October 31, 2017.

52

Exhibit Number	Description
4.36	Seventeenth Supplemental Indenture dated as of October 31, 2017, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.56 of the Registrant’s Form 10-K for the year ended October 31, 2017.
4.37	Eighteenth Supplemental Indenture dated as of April 13, 2018, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.3 of the Registrant’s Form 10-Q for the quarter ended April 30, 2018.
4.38	Nineteenth Supplemental Indenture dated as of April 30, 2018, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.4 of the Registrant’s Form 10-Q for the quarter ended April 30, 2018.
4.39	Twentieth Supplemental Indenture dated as of October 31, 2018, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.62 of the Registrant’s Form 10-K for the year ended October 31, 2018.
4.40	Twenty-First Supplemental Indenture dated as of January 31, 2019, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.2 on the Registrant’s Form 10-Q fro the quarter ended January 31, 2019.
4.41	Twenty-Second Supplemental Indenture dated as of October 30, 2019, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee.**
4.42	Twenty-third Supplemental Indenture dated as of October 30, 2019, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee.**
4.43	Description of Certain of Registrant’s Securities**
10.1	Amended and Restated Credit Agreement, dated as of October 31,2019, among the First Huntingdon Finance Corp., Toll Brothers, Inc., and the lenders party thereto and Citibank, N.A., as Administrative Agent, is hereby incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 1, 2019.
10.2	Credit Agreement by and among First Huntingdon Finance Corp., Toll Brothers, Inc., the lenders party thereto and SunTrust Bank, as Administrative Agent dated February 3, 2014, is hereby incorporated by reference to Exhibit 10.2 of the Registrant’s Form 8-K filed with the Securities and Exchange Commission on February 5, 2014
10.3	Amendment No. 1, dated as of May 19, 2016, to the Credit Agreement, dated as of February 3, 2014, among First Huntingdon Finance Corp., Toll Brothers, Inc., the Lenders party thereto and SunTrust Bank, as Administrative Agent, is hereby incorporated by reference to Exhibit 10.2 of the Registrant’s Form 8-K filed with the Securities and Exchange Commission on May 24, 2016.
10.4	Amendment No. 2, dated August 2, 2016, to Credit Agreement dated as of February 3, 2014, as amended, by and among First Huntingdon Finance Corp., Toll Brothers, Inc., the designated guarantors party thereto, the lenders party thereto and SunTrust Bank, as Administrative Agent, is hereby incorporated by reference to Exhibit 10.1 of the Registrant’s Form 8-K filed with the Securities and Exchange Commission on August 4, 2016.
10.5	Amendment No. 3, dated November 1, 2018, to Credit Agreement dated as of February 3, 2014, as amended, by and among First Huntingdon Finance Corp., Toll Brothers, Inc., the designated guarantors party thereto, the lenders party thereto and SunTrust Bank, as Administrative Agent, is hereby incorporated by reference to Exhibit 10.1 of the Registrant’s Form 8-K filed with the Securities and Exchange Commission on November 2, 2018.

53

Exhibit Number	Description
10.6	Amendment No. 4, dated as of October 31, 2019, to the Credit Agreement, dated as of February 3, 2014,as amended, by and First Huntingdon Finance Corp., Toll Brothers, Inc., the designated guarantors party thereto, the lenders party thereto and SunTrust Bank, as Administrative Agent, is hereby incorporated by reference to Exhibit 10.2 of the Registrant’s Form 8-K filed with the Securities and Exchange Commission on November 1, 2019.
10.7*	Toll Brothers, Inc. Employee Stock Purchase Plan (2017) is hereby incorporated by reference to Annex A to the Registrant’s Definitive Proxy Statement on Schedule 14A for its 2017 Annual Meeting of Stockholders filed with the SEC on January 31, 2017.
10.8*	Amendment No. 1, dated as of December 13, 2017, to the Toll Brothers, Inc. Employee Stock Purchase Plan (2017) is hereby incorporated by reference to Exhibit 10.7 of the Registrant’s Form 10-K for the year ended October 31, 2017.
10.9*	Amendment No. 2, dated as of June 19, 2018, to the Toll Brothers, Inc. Employee Stock Purchase Plan (2017) is hereby incorporated by reference to Exhibit 10.8 of the Registrant’s Form 10-K for the year ended October 31, 2018.
10.10*	Toll Brothers, Inc. Amended and Restated Stock Incentive Plan for Employees (2007) (amended and restated as of September 17, 2008, is hereby incorporated by reference to Exhibit 4.1 of the Registrant’s Amendment No. 1 to its Registration Statement on Form S-8 (No. 333-143367) filed with the Securities and Exchange Commission on October 29, 2008.
10.11*	Form of Non-Qualified Stock Option Grant pursuant to the Toll Brothers, Inc. Stock Incentive Plan for Employees (2007) is hereby incorporated by reference to Exhibit 10.1 of the Registrant’s Form 8-K filed with the Securities and Exchange Commission on December 19, 2007.
10.12*	Form of Addendum to Non-Qualified Stock Option Grant pursuant to the Toll Brothers, Inc. Stock Incentive Plan for Employees (2007) is hereby incorporated by reference to Exhibit 10.3 of the Registrant’s Form 10-Q for the quarter ended July 31, 2007.
10.13*	Form of Stock Award Grant pursuant to the Toll Brothers, Inc. Stock Incentive Plan for Employees (2007) is hereby incorporated by reference to Exhibit 10.4 of the Registrant’s Form 10-Q for the quarter ended July 31, 2007.
10.14*	Toll Brothers, Inc. Stock Incentive Plan for Employees (2014) is hereby incorporated by reference to Annex A to the Registrant’s definitive proxy statement on Schedule 14A for its 2014 Annual Meeting of Stockholders filed with the SEC on February 3, 2014.
10.15*	Form of Non-Qualified Stock Option Grant pursuant to the Toll Brothers, Inc. Stock Incentive Plan for Employees (2014) is incorporated by reference to Exhibit 10.16 of the Registrant’s Form 10-K for the period ended October 31, 2014.
10.16*	Form of Restricted Stock Unit Agreement (Performance Based) pursuant to the Toll Brothers, Inc. Stock Incentive Plan for Employees (2014) is incorporated by reference to Exhibit 10.17 of the Registrant’s Form 10-K for the period ended October 31, 2014.
10.17*	Form of Non-Qualified Stock Option Grant, is hereby incorporated by reference to Exhibit 10.18 of the Registrant’s Form 10-K for the year ended October 31, 2016.
10.18*	Form of Restricted Stock Unit Agreement (Performance Based), is hereby incorporated by reference to Exhibit 10.19 of the Registrant’s Form 10-K for the year ended October 31, 2016.
10.19*	Form of Restricted Stock Unit Agreement (Total Shareholder Return Performance Based), is hereby incorporated by reference to Exhibit 10.20 of the Registrant’s Form 10-K for the year ended October 31, 2016.
10.20*	Toll Brothers, Inc. Amended and Restated Stock Incentive Plan for Non-Employee Directors (2007) (amended and restated as of September 17, 2008) is hereby incorporated by reference to Exhibit 4.1 of the Registrant’s Amendment No. 1 to its Registration Statement on Form S-8 (No. 333-144230) filed with the Securities and Exchange Commission on October 29, 2008.
10.21*	Form of Non-Qualified Stock Option Grant pursuant to the Toll Brothers, Inc. Stock Incentive Plan for Non-Employee Directors (2007) is hereby incorporated by reference to Exhibit 10.2 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on December 19, 2007.

54

Exhibit Number	Description
10.22*	Form of Addendum to Non-Qualified Stock Option Grant pursuant to the Toll Brothers, Inc. Amended and Restated Stock Incentive Plan for Non-Employee Directors (2007) is hereby incorporated by reference to Exhibit 10.6 of the Registrant’s Form 10-Q for the quarter ended July 31, 2007.
10.23*	Form of Restricted Stock Unit Award Agreement pursuant to the Toll Brothers, Inc. Amended and Restated Stock Incentive Plan for Non-Employee Directors (2007) is incorporated by reference to Exhibit 10.21 of the Registrant’s Form 10-K for the period ended October 31, 2014.
10.24*	Toll Brothers, Inc. Stock Incentive Plan for Non-Executive Directors (2016) is hereby incorporated by reference to Annex A to the Registrant’s definitive proxy statement on Schedule 14A for its 2016 Annual Meeting of Stockholders filed with the Securities and Exchange Commission on February 2, 2016.
10.25*	Form of Non-Qualified Stock Option Grant (Non-Executive Directors), is hereby incorporated by reference to Exhibit 10.26 of the Registrant’s Form 10-K for the year ended October 31, 2016.
10.26*	Form of Restricted Stock Unit Agreement (Non-Executive Directors), is hereby incorporated by reference to Exhibit 10.27 of the Registrant’s Form 10-K for the year ended October 31, 2016.
10.27*	Toll Brothers, Inc. 2019 Omnibus Incentive Plan, is hereby incorporated by reference to Exhibit 10.2 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 14, 2019.
10.28*	Form of Non-Qualified Stock Option Grant pursuant to the Toll Brothers, Inc. 2019 Omnibus Incentive Plan.**
10.29*	Form of Restricted Stock Unit Agreement pursuant to the Toll Brothers, Inc. 2019 Omnibus Incentive Plan.**
10.30*	Form of Restricted Stock Unit Agreement (Performance Based) pursuant to the Toll Brothers, Inc. 2019 Omnibus Incentive Plan.**
10.31*	Form of Restricted Stock Unit Agreement (Total Shareholder Return Performance Based), pursuant to the Toll Brothers, Inc. 2019 Omnibus Incentive Plan.**
10.32*	Toll Brothers, Inc. Senior Officer Bonus Plan is hereby incorporated by reference to Annex A to the Registrant’s definitive proxy statement on Schedule 14A for its 2015 Annual Meeting of Stockholders filed with the Securities and Exchange Commission on January 30, 2015.
10.33*	Toll Brothers, Inc. Supplemental Executive Retirement Plan, as amended effective as of October 29, 2019, is hereby incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 10-Q filed with the Securities and Exchange Commission on October 30, 2019.
10.34*	Toll Bros., Inc. Non-Qualified Deferred Compensation Plan, amended and restated as of November 1, 2008, is incorporated by reference to Exhibit 10.45 of the Registrant’s Form 10-K for the period ended October 31, 2008.
10.35*	Amendment Number 1 dated November 1, 2010 to the Toll Bros., Inc. Non-Qualified Deferred Compensation Plan, amended and restated as of November 1, 2008, is incorporated by reference to Exhibit 10.40 of the Registrant’s Form 10-K for the period ended October 31, 2010.
10.36*	Amendment Number 2 dated December 30, 2010 to the Toll Bros., Inc. Non-Qualified Deferred Compensation Plan, amended and restated as of November 1, 2008 is incorporated by reference to Exhibit 10.28 of the Registrant’s Form 10-K for the period ended October 31, 2014.
10.37*	Amendment Number 3 dated December 22, 2011 to the Toll Bros., Inc. Non-Qualified Deferred Compensation Plan, amended and restated as of November 1, 2008, is incorporated by reference to Exhibit 10.29 of the Registrant’s Form 10-K for the period ended October 31, 2014.
10.38*	Toll Bros., Inc. Nonqualified Deferred Compensation Plan, amended and restated effective as of December 31, 2014, is incorporated by reference to Exhibit 10.1 of the Registrant’s Form 10-Q for the quarter ended January 31, 2015.
10.39*	Toll Brothers, Inc. Executive Severance Plan, is hereby incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 14, 2019.

55

Exhibit Number	Description
10.40*	Form of Indemnification Agreement between the Registrant and the members of its Board of Directors, is hereby incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 17, 2009.
10.41*	Advisory and Non-Competition Agreement between the Registrant and Robert I. Toll, dated as of October 17, 2018, is hereby incorporated by reference to Exhibit 10.34 to the Registrant’s Form 10-K for the year ended October 31, 2018.
10.42*	Advisory and Non-Competition Agreement Extension between the Registrant and Robert I. Toll, dated as of October 29, 2019, is hereby incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 30, 2019.
21**	Subsidiaries of the Registrant.
23**	Consent of Ernst & Young LLP, Independent Registered Public Accountant.
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	The following financial statements from Toll Brothers, Inc. Annual Report on Form 10-K for the year ended October 31, 2019, filed on [December XX, 2019], formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations and Comprehensive Income, (iii) Consolidated Statements of Changes in Equity, (iv) Consolidated Statements of Cash Flows, and (v) the Notes to Consolidated Financial Statements.
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

*	This exhibit is a management contract or compensatory plan or arrangement required to be filed as an exhibit to this report.
**	Filed electronically herewith.

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves; they should not be relied on for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

56

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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, in the Township of Horsham, Commonwealth of Pennsylvania, on December 26, 2019.

TOLL BROTHERS, INC.
By:	/s/ Douglas C. Yearley, Jr.
	Douglas C. Yearley, Jr. Chief Executive Officer (Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ Douglas C. Yearley, Jr.	Chairman of the Board and Chief Executive	December 26, 2019
Douglas C. Yearley, Jr.	Officer (Principal Executive Officer)
/s/ Martin P. Connor	Senior Vice President and Chief Financial Officer	December 26, 2019
Martin P. Connor	(Principal Financial Officer)
/s/ Michael J. Grubb	Senior Vice President and Chief Accounting	December 26, 2019
Michael J. Grubb	Officer (Principal Accounting Officer)
/s/ Edward G. Boehne	Director	December 26, 2019
Edward G. Boehne
/s/ Richard J. Braemer	Director	December 26, 2019
Richard J. Braemer
/s/ Christine N. Garvey	Director	December 26, 2019
Christine N. Garvey
/s/ Karen H. Grimes	Director	December 26, 2019
Karen H. Grimes
/s/ Carl B. Marbach	Director	December 26, 2019
Carl B. Marbach
/s/ John A. McLean	Director	December 26, 2019
John A. McLean
/s/ Stephen A. Novick	Director	December 26, 2019
Stephen A. Novick

57

Signature	Title	Date
/s/ Wendell E. Pritchett	Director	December 26, 2019
Wendell E. Pritchett
/s/ Paul E. Shapiro	Director	December 26, 2019
Paul E. Shapiro
/s/ Robert I. Toll	Director	December 26, 2019
Robert I. Toll

58

Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in the Securities Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed 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. Internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Under the supervision and with the participation of our management, including our principal executive officer and our principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework). Based on this evaluation under the framework in Internal Control — Integrated Framework, our management concluded that our internal control over financial reporting was effective as of October 31, 2019.

During fiscal 2019, we completed the acquisitions of each of Sharp Residential, LLC (“Sharp”) and Sabal Homes LLC (“Sabal”). In accordance with SEC Staff guidance permitting a company to exclude an acquired business from management’s assessment of the effectiveness of internal control over financial reporting for the year in which the acquisition is completed, we have excluded each of Sharp and Sabal from the Company’s assessment of the effectiveness of internal control over financial reporting as of October 31, 2019. These companies represented less than 2% of the Company’s total assets as of October 31, 2019 and less than 1% of the Company’s revenues for the fiscal year ended October 31, 2019.

Our independent registered public accounting firm, Ernst & Young LLP, has issued its report, which is included herein, on the effectiveness of our internal control over financial reporting.

F-1

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Toll Brothers, Inc.

Opinion on Internal Control over Financial Reporting

We have audited Toll Brothers, Inc.’s internal control over financial reporting as of October 31, 2019, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Toll Brothers, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of October 31, 2019, based on the COSO criteria.

As indicated in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of Sharp Residential, LLC or Sabal Homes, LLC, which are included in the 2019 consolidated financial statements of the Company and constitute less than 2% of total assets as of October 31, 2019 and less than 1% of revenues for the year then ended. Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of Sharp Residential, LLC or Sabal Homes, LLC.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the 2019 consolidated financial statements of the Company and our report dated December 26, 2019 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania

December 26, 2019

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Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Toll Brothers, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Toll Brothers, Inc. (the Company) as of October 31, 2019 and 2018, the related consolidated statements of operations and comprehensive income, changes in equity and cash flows for each of the three years in the period ended October 31, 2019, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at October 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended October 31, 2019, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of October 31, 2019, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated December 26, 2019 expressed an unqualified opinion thereon.

Adoption of ASU No. 2014-09

As discussed in Note 1 to the consolidated financial statements, the Company changed its method of accounting for revenue recognition, inventory and cost of revenues in 2019 due to the adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), and related Subtopic ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Water Intrusion Reserves

Description of the Matter

As described in Note 7 of the consolidated financial statements, the Company accrues for the estimated repair costs to be incurred for known and unknown water intrusion claims from owners of certain homes built in Pennsylvania and Delaware. At October 31, 2019, the Company had an accrued liability for water intrusion claims of $124.6 million, representing its best estimate of the expected costs related to known and future water intrusion claims. The Company calculated the estimated liability for water intrusion claims using assumptions that are subject to significant uncertainty, including the number of homes that require repairs, outcomes of litigation or arbitrations, the extent of repairs required, the repair procedures employed, and the expected costs of those repairs or costs incurred to otherwise settle the homeowner’s claim. Due to the degree of judgment required in making these assumptions and the inherent uncertainty of certain outcomes, it is reasonably possible that the actual costs will differ from the amount accrued. If it is reasonably

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possible that such additional costs may be incurred and the effect on the financial statements is material, the Company discloses an estimate of the amount or range of additional costs or a statement that such an estimate cannot be made within the notes to the financial statements.

Auditing the Company’s accounting for water intrusion claims, and the related disclosures, was especially challenging as evaluating the likelihood and amount of cost was highly subjective and required significant judgment. In particular, management’s estimates were sensitive to assumptions about the number of claims and the costs to settle the claims, which are projected to be resolved over an extended period of time, and the amount accrued by the Company was sensitive to relatively small changes in those assumptions.

How We Addressed the Matter in Our Audit
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over management’s review of the accrual calculation, including controls over the significant assumptions and the data inputs utilized in the calculations, as well as the financial statement disclosures. For example, we tested controls over management’s review of the accrual calculation, including its review of the significant assumptions and the data inputs utilized in the calculations. We also tested controls over management’s review of the disclosure in the notes to the consolidated financial statements for compliance with generally accepted accounting principles. To test the estimated liability and related financial statement disclosures for water intrusion claims, we performed audit procedures that included, among others, testing the significant assumptions discussed above and the underlying data used by the Company in its analysis. We compared the significant assumptions used by management to historical water intrusion claims data, historical data about additional homes delivered by the Company that could potentially be subject to water intrusion claims, and historical costs incurred to either repair homes or otherwise settle water intrusion claims from homeowners. We also reviewed contractual agreements and evaluated management’s conclusions about the Company’s legal and contractual obligations with respect to water intrusion claims. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the accrual for water intrusion claims that would result from changes in the assumptions. We recalculated the Company’s liability for water intrusion claims using management’s data and evaluated the disclosure of the liability in the Company’s consolidated financial statements.

Insurance Receivable

Description of the Matter

As described in Note 7 of the consolidated financial statements, the Company recorded a receivable for expected recoveries from insurance carriers. At October 31, 2019, the Company recorded an estimated insurance receivable of $97.9 million, inclusive of amounts that are subject to dispute with the Company’s insurance carriers. Auditing management’s accounting for the existence of insurance receivable was especially challenging due to the complexity and variability of the underlying claims. Evaluating the likelihood and amount of recoveries from insurance carriers was highly subjective and required significant judgment. In particular, as stated in Note 7. of the consolidated financial statements, management’s estimates were sensitive to assumptions about the amount of losses that the Company will incur on warranty related repairs by policy year and management’s conclusions about the legal merits that support the pending and future insurance claims.

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How We Addressed the Matter in Our Audit
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over management’s review of the expected recoveries from insurance carriers and the recorded receivable, including controls over the significant assumptions and the data inputs used to calculate the expected recoverable amount, as well as the financial statement disclosures. For example, we tested controls over management’s review of the insurance policies and related coverage, the legal merits of the claims made and the expected amounts to be covered under those insurance policies. To test the expected recoveries from insurance carriers, we performed audit procedures that included, among others, reading and understanding the Company’s insurance policies, testing the claims submitted under the Company’s insurance policies to verify the completeness, occurrence and measurement of the loss, and, when applicable, vouching cash receipts from the insurance carrier for previously submitted claims. We also tested the Company’s calculation of the losses the Company expects to incur on warranty related repairs by policy year. We reviewed communications between the Company and its insurance carriers and evaluated management’s conclusions about the legal merits of the insurance claims with respect to the recorded receivable by performing procedures that included, among others, reviewing correspondence from external counsel regarding the legal merits of the Company’s insurance claims.

Inventory Impairment

Description of the Matter

As described in Note 1 of the consolidated financial statements, the Company states its inventory at cost unless an impairment exists, in which case the inventory is written down to fair value. For the year ended October 31, 2019, the Company recorded inventory impairment charges of $31.1 million. The Company regularly evaluates whether there are any impairment indicators for inventory present at the community level. If impairment indicators are present, the Company reviews the carrying value of each community’s inventory by comparing the estimated future undiscounted cash flow to the carrying value. For inventory for which the carrying value exceeds the future undiscounted cash flows, the Company writes down the carrying value of the inventory to its estimated fair value primarily based on a discounted cash flow model. Auditing management’s accounting for inventory impairment, its tests for recoverability and, when applicable, its measurement of impairment losses, was especially challenging and involved a high degree of subjectivity as a result of the assumptions and estimates inherent in these evaluations. In particular, management’s assumptions and estimates included future sales prices, the pace of future sales, and the applicable discount rates, which were sensitive to expectations about future demand, operations and economic factors. Additionally, the fair value of certain communities was highly sensitive to relatively small changes in one or more of those assumptions.

How We Addressed the Matter in Our Audit
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over management’s inventory impairment review process. For example, we tested controls over management’s review of the significant assumptions and data inputs utilized in the calculation of future undiscounted and discounted cash flows. To test the Company’s estimated future cash flows used to test for the recoverability of a community and, if applicable, the measurement of an impairment loss, we performed audit procedures that included, among others, testing the significant assumptions discussed above and the underlying data used by the Company in its impairment analyses, evaluating the methodologies applied by management, and recalculating the total undiscounted and discounted cash flows in each analysis. In certain cases, we involved our internal real estate valuation specialists to assist in performing these procedures. We compared the significant assumptions used by management to historical sales data, sales trends, and observable market-specific data. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of inventory that would result from changes in the assumptions.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 1983.

Philadelphia, Pennsylvania

December 26, 2019

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CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

	October 31,
	2019			2018
ASSETS
Cash and cash equivalents	$	1,286,014		$	1,182,195
Inventory	7,873,048			7,598,219
Property, construction, and office equipment, net	273,412			193,281
Receivables, prepaid expenses, and other assets (1)	715,441			550,778
Mortgage loans held for sale, at fair value	218,777			170,731
Customer deposits held in escrow	74,403			117,573
Investments in unconsolidated entities	366,252			431,813
Income taxes receivable	20,791			—
	$	10,828,138		$	10,244,590
LIABILITIES AND EQUITY
Liabilities
Loans payable	$	1,111,449		$	686,801
Senior notes	2,659,898			2,861,375
Mortgage company loan facility	150,000			150,000
Customer deposits	385,596			410,864
Accounts payable	348,599			362,098
Accrued expenses	950,932			973,581
Income taxes payable	102,971			30,959
Total liabilities	5,709,445			5,475,678
Equity
Stockholders’ equity
Preferred stock, none issued	—			—
Common stock, 152,937 and 177,937 shares issued at October 31, 2019 and 2018, respectively	1,529			1,779
Additional paid-in capital	726,879			727,053
Retained earnings	4,774,422			5,161,551
Treasury stock, at cost — 11,999 and 31,774 shares at October 31, 2019 and 2018, respectively	(425,183		)	(1,130,878		)
Accumulated other comprehensive (loss) income	(5,831		)	694
Total stockholders’ equity	5,071,816			4,760,199
Noncontrolling interest	46,877			8,713
Total equity	5,118,693			4,768,912
	$	10,828,138		$	10,244,590

(1) As of October 31, 2019 and 2018, receivables, prepaid expenses, and other assets include $145.8 million and $19.7 million, respectively, of assets related to consolidated variable interest entities ("VIEs"). See Note 4, “Investments in Unconsolidated Entities” for additional information regarding VIEs.

See accompanying notes.

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Amounts in thousands, except per share data)

	Year ended October 31,
	2019			2018		2017
Revenues:
Home sales	$	7,080,379		$	7,143,258	$	5,815,058
Land sales	143,587			—		—
	7,223,966			7,143,258		5,815,058
Cost of revenues:
Home sales	5,678,914			5,673,007		4,562,303
Land sales	129,704			—		—
	5,808,618			5,673,007		4,562,303
Selling, general and administrative	734,548			684,035		605,572
Income from operations	680,800			786,216		647,183
Other:
Income from unconsolidated entities	24,868			85,240		116,066
Other income – net	81,502			62,460		51,062
Income before income taxes	787,170			933,916		814,311
Income tax provision	197,163			185,765		278,816
Net income	$	590,007		$	748,151	$	535,495
Other comprehensive (loss) income, net of tax	(6,525		)	2,926		1,426
Total comprehensive income	$	583,482		$	751,077	$	536,921
Per share:
Basic earnings	$	4.07		$	4.92	$	3.30
Diluted earnings	$	4.03		$	4.85	$	3.17
Weighted-average number of shares:
Basic	145,008			151,984		162,222
Diluted	146,501			154,201		169,487

See accompanying notes.

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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Amounts in thousands)

	Common Stock				Addi- tional Paid-in Capital		Retained Earnings		Treasury Stock		Accum- ulated Other Compre- hensive Loss		Stock-holders’ Equity		Non-controlling Interest		Total Equity
	Shares		$		$		$		$		$		$		$		$
Balance, November 1, 2016	177,937		1,779		728,464		3,977,297		(474,912	)	(3,336	)	4,229,292		5,910		4,235,202
Net income							535,495						535,495				535,495
Purchase of treasury stock									(290,881	)			(290,881	)			(290,881	)
Exercise of stock options and stock based compensation issuances					(36,896	)			101,799				64,903				64,903
Employee stock purchase plan issuances					81				1,140				1,221				1,221
Stock-based compensation					28,466								28,466				28,466
Dividends declared							(38,728	)					(38,728	)			(38,728	)
Other comprehensive income											1,426		1,426				1,426
Loss attributable to non-controlling interest													—		(14	)	(14	)
Balance, October 31, 2017	177,937		1,779		720,115		4,474,064		(662,854	)	(1,910	)	4,531,194		5,896		4,537,090
Cumulative effect adjustment upon adoption of ASU 2016-09 and ASU 2018-02					372		1,413				(322	)	1,463				1,463
Net income							748,151						748,151				748,151
Purchase of treasury stock									(503,159	)			(503,159	)			(503,159	)
Exercise of stock options and stock based compensation issuances					(21,789	)			33,969				12,180				12,180
Employee stock purchase plan issuances					43				1,166				1,209				1,209
Stock-based compensation					28,312								28,312				28,312
Dividends declared							(62,077	)					(62,077	)			(62,077	)
Other comprehensive income											2,926		2,926				2,926
Loss attributable to non-controlling interest													—		(15	)	(15	)
Capital contribution													—		2,832		2,832
Balance, October 31, 2018	177,937		1,779		727,053		5,161,551		(1,130,878	)	694		4,760,199		8,713		4,768,912
Cumulative effect adjustment upon adoption of ASC 606, net of tax							(17,987	)					(17,987	)			(17,987	)
Net income							590,007						590,007				590,007
Purchase of treasury stock									(233,523	)			(233,523	)			(233,523	)
Exercise of stock options and stock based compensation issuances					(26,368	)			42,392				16,024				16,024
Employee stock purchase plan issuances					14				1,309				1,323				1,323
Stock-based compensation					26,180								26,180				26,180
Cancellation of treasury stock	(25,000	)	(250	)			(895,267	)	895,517				—				—
Dividends declared							(63,882	)					(63,882	)			(63,882	)
Other comprehensive loss											(6,525	)	(6,525	)			(6,525	)
Loss attributable to non-controlling interest													—		(19	)	(19	)
Capital contributions													—		38,183		38,183
Balance, October 31, 2019	152,937		1,529		726,879		4,774,422		(425,183	)	(5,831	)	5,071,816		46,877		5,118,693

See accompanying notes.

F-8

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

	Year ended October 31,
	2019			2018			2017
Cash flow provided by operating activities:
Net income	$	590,007		$	748,151		$	535,495
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	72,149			25,259			25,361
Stock-based compensation	26,180			28,312			28,466
Income from unconsolidated entities	(24,868		)	(85,240		)	(116,066		)
Distributions of earnings from unconsolidated entities	31,799			86,099			134,291
Income from foreclosed real estate and distressed loans	(947		)	(1,551		)	(4,937		)
Deferred tax provision (benefit)	102,764			(21,930		)	217,864
Change in deferred tax valuation allowances							(32,154		)
Inventory impairments and write-offs	42,360			35,156			14,794
Gain on sales of golf club properties and an office building	(36,277		)
Other	(1,042		)	3,111			1,395
Changes in operating assets and liabilities
(Increase) decrease in inventory	(40,236		)	(143,598		)	129,666
Origination of mortgage loans	(1,611,496		)	(1,449,494		)	(1,217,274		)
Sale of mortgage loans	1,565,944			1,410,627			1,332,207
Increase in receivables, prepaid expenses, and other assets	(185,261		)	(99,604		)	(60,944		)
Increase in income taxes receivable	(20,791		)
Increase (decrease) in customer deposits – net	14,041			(718		)	37,967
(Decrease) increase in accounts payable and accrued expenses	(64,518		)	57,927			(140,463		)
Decrease in income taxes payable	(22,147		)	(4,296		)	(23,970		)
Net cash provided by operating activities	437,661			588,211			861,698
Cash flow (used in) provided by investing activities:
Purchase of property, construction, and office equipment – net	(86,971		)	(28,232		)	(28,872		)
Sale and redemption of marketable securities and restricted investments — net							18,049
Investments in unconsolidated entities	(56,560		)	(27,491		)	(122,334		)
Return of investments in unconsolidated entities	147,927			133,190			195,505
Investment in foreclosed real estate and distressed loans	(731		)	(966		)	(710		)
Return of investments in foreclosed real estate and distressed loans	3,147			4,765			13,765
Proceeds from sales of golf club properties and an office building	79,647
Acquisitions of businesses	(162,373		)				(83,088		)
Net cash (used in) provided by investing activities	(75,914		)	81,266			(7,685		)
Cash flow used in financing activities:
Proceeds from issuance of senior notes	400,000			400,000			455,483
Proceeds from loans payable	2,699,028			2,630,835			1,621,043
Debt issuance costs	(6,180		)	(3,531		)	(4,449		)
Principal payments of loans payable	(2,471,616		)	(2,690,164		)	(1,999,357		)
Redemption of senior notes	(600,000		)				(687,500		)
Proceeds from stock-based benefit plans, net	17,369			13,392			66,000
Purchase of treasury stock	(233,523		)	(503,159		)	(290,881		)
Dividends paid	(63,641		)	(61,704		)	(38,587		)
Receipts related to noncontrolling interest, net	49			30
Net cash used in financing activities	(258,514		)	(214,301		)	(878,248		)
Net increase (decrease) in cash, cash equivalents, and restricted cash	103,233			455,176			(24,235		)
Cash, cash equivalents, and restricted cash, beginning of period	1,216,410			761,234			785,469
Cash, cash equivalents, and restricted cash, end of period	$	1,319,643		$	1,216,410		$	761,234

See accompanying notes.

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Notes to Consolidated Financial Statements

1. Significant Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Toll Brothers, Inc. (the “Company,” “we,” “us,” or “our”), a Delaware corporation, and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Investments in 50% or less owned partnerships and affiliates are accounted for using the equity method unless it is determined that we have effective control of the entity, in which case we would consolidate the entity.

References herein to fiscal year refer to our fiscal years ended or ending October 31.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents

Liquid investments or investments with original maturities of three months or less are classified as cash equivalents. Our cash balances exceed federally insurable limits. We monitor the cash balances in our operating accounts and adjust the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, we have experienced no loss or lack of access to cash in its operating accounts.

Inventory

Inventory is stated at cost unless an impairment exists, in which case it is written down to fair value in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment” (“ASC 360”). In addition to direct land acquisition costs, land development costs, and home construction costs, costs also include interest, real estate taxes, and direct overhead related to development and construction, which are capitalized to inventory during the period beginning with the commencement of development and ending with the completion of construction. For those communities that have been temporarily closed, no additional capitalized interest is allocated to a community’s inventory until it reopens. While the community remains closed, carrying costs such as real estate taxes are expensed as incurred.

We capitalize certain interest costs to qualified inventory during the development and construction period of our communities in accordance with ASC 835-20, “Capitalization of Interest” (“ASC 835-20”). Capitalized interest is charged to home sales cost of sales revenues when the related inventory is delivered. Interest incurred on home building indebtedness in excess of qualified inventory, as defined in ASC 835-20, is charged to the Consolidated Statements of Operations and Comprehensive Income in the period incurred.

Once a parcel of land has been approved for development and we open one of our typical communities, it may take 4 or more years to fully develop, sell, and deliver all the homes in such community. Longer or shorter time periods are possible depending on the number of home sites in a community and the sales and delivery pace of the homes in a community. Our master planned communities, consisting of several smaller communities, may take up to 10 years or more to complete. Because our inventory is considered a long-lived asset under GAAP, we are required, under ASC 360, to regularly review the carrying value of each community and write down the value of those communities for which we believe the values are not recoverable.

Operating Communities: When the profitability of an operating community deteriorates, the sales pace declines significantly, or some other factor indicates a possible impairment in the recoverability of the asset, the asset is reviewed for impairment by comparing the estimated future undiscounted cash flow for the community to its carrying value. If the estimated future undiscounted cash flow is less than the community’s carrying value, the carrying value is written down to its estimated fair value. Estimated fair value is primarily determined by discounting the estimated future cash flow of each community. The impairment is charged to home sales cost of revenues in the period in which the impairment is determined. In estimating the future undiscounted cash flow of a community, we use various estimates such as (i) the expected sales pace in a community, based upon general economic conditions that will have a short-term or long-term impact on the market in which the community is located and on competition within the market, including the number of home sites available and pricing and incentives being offered in other communities owned by us or by other builders; (ii) the expected sales prices and sales incentives to be offered in a community; (iii) costs expended to date and expected to be incurred in the future, including, but not limited to, land and land development, home construction, interest, and overhead costs; (iv) alternative product offerings that may be offered in a

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community that will have an impact on sales pace, sales price, building cost, or the number of homes that can be built on a particular site; and (v) alternative uses for the property such as the possibility of a sale of the entire community to another builder or the sale of individual home sites.

Future Communities: We evaluate all land held for future communities or future sections of operating communities, whether owned or under contract, to determine whether or not we expect to proceed with the development of the land as originally contemplated. This evaluation encompasses the same types of estimates used for operating communities described above, as well as an evaluation of the regulatory environment applicable to the land and the estimated probability of obtaining the necessary approvals, the estimated time and cost it will take to obtain the approvals, and the possible concessions that may be required to be given in order to obtain them. Concessions may include cash payments to fund improvements to public places such as parks and streets, dedication of a portion of the property for use by the public or as open space, or a reduction in the density or size of the homes to be built. Based upon this review, we decide (i) as to land under contract to be purchased, whether the contract will likely be terminated or renegotiated, and (ii) as to land owned, whether the land will likely be developed as contemplated or in an alternative manner, or should be sold. We then further determine whether costs that have been capitalized to the community are recoverable or should be written off. The write-off is charged to home sales cost of revenues in the period in which the need for the write-off is determined.

The estimates used in the determination of the estimated cash flows and fair value of both current and future communities are based on factors known to us at the time such estimates are made and our expectations of future operations and economic conditions. Should the estimates or expectations used in determining estimated fair value deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to current and future communities and such amounts could be material.

Variable Interest Entities

We are required to consolidate variable interest entities (“VIEs”) in which we have a controlling financial interest in accordance with ASC 810, “Consolidation” (“ASC 810”). A controlling financial interest will have both of the following characteristics: (i) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

Our variable interest in VIEs may be in the form of equity ownership, contracts to purchase assets, management services and development agreements between us and a VIE, loans provided by us to a VIE or other member, and/or guarantees provided by members to banks and other parties.

We have a significant number of land purchase contracts and investments in unconsolidated entities which we evaluate in accordance with ASC 810. We analyze our land purchase contracts and the unconsolidated entities in which we have an investment to determine whether the land sellers and unconsolidated entities are VIEs and, if so, whether we are the primary beneficiary. We examine specific criteria and use our judgment when determining if we are the primary beneficiary of a VIE. Factors considered in determining whether we are the primary beneficiary include risk and reward sharing, experience and financial condition of other member(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, level of economic disproportionality between us and the other member(s), and contracts to purchase assets from VIEs. The determination whether an entity is a VIE and, if so, whether we are the primary beneficiary may require significant judgment.

Property, Construction, and Office Equipment

Property, construction, and office equipment are recorded at cost and are stated net of accumulated depreciation of $252.5 million and $145.0 million at October 31, 2019 and 2018, respectively. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. In fiscal 2019, 2018, and 2017, we recognized $67.6 million, $21.0 million, and $18.7 million of depreciation expense, respectively.

Mortgage Loans Held for Sale

Residential mortgage loans held for sale are measured at fair value in accordance with the provisions of ASC 825, “Financial Instruments” (“ASC 825”). We believe the use of ASC 825 improves consistency of mortgage loan valuations between the date the borrower locks in the interest rate on the pending mortgage loan and the date of the mortgage loan sale. At the end of the reporting period, we determine the fair value of our mortgage loans held for sale and the forward loan commitments we have entered into as a hedge against the interest rate risk of our mortgage loans 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 such pricing is applied to the mortgage loan portfolio. We recognize the difference between the fair value and the unpaid principal balance of mortgage loans held for sale as a gain or loss. In addition, we recognize the fair value of our forward loan

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commitments as a gain or loss. Interest income on mortgage loans held for sale is calculated based upon the stated interest rate of each loan. In addition, the recognition of net origination costs and fees associated with residential mortgage loans originated are expensed as incurred. These gains and losses, interest income, and origination costs and fees are recognized in “Other income - net” in the Consolidated Statements of Operations and Comprehensive Income.

Investments in Unconsolidated Entities

In accordance with ASC 323, “Investments—Equity Method and Joint Ventures,” 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 the investment 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 from the unconsolidated entity. In addition, for rental properties, we review rental trends, expected future expenses, and expected cash flows to determine estimated fair values of the properties.

Our unconsolidated entities that develop land or develop for-sale homes and condominiums evaluate their inventory in a similar manner as we do. See “Inventory” above for more detailed disclosure on our evaluation of inventory. For our unconsolidated entities that own, develop, and manage for-rent residential apartments, we review rental trends, expected future expenses, and expected future cash flows to determine estimated fair values of the properties. If a valuation adjustment is recorded by an unconsolidated entity related to its assets, our proportionate share is reflected in income from unconsolidated entities with a corresponding decrease to our investment in unconsolidated entities.

We are a party to several joint ventures with unrelated parties to develop and sell land that is owned by the joint ventures. We recognize our proportionate share of the earnings from the sale of home sites to other builders, including our joint venture partners. We do not recognize earnings from the home sites we purchase from these ventures at the time of purchase; instead, our cost basis in those home sites is reduced by our share of the earnings realized by the joint venture from sales of those home sites to us.

We are also a party to several other joint ventures. We recognize our proportionate share of the earnings and losses of our unconsolidated entities.

Fair Value Disclosures

We use 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 that 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.

Treasury Stock

Treasury stock is recorded at cost. Issuance of treasury stock is accounted for on a first-in, first-out basis. Differences between the cost of treasury stock and the re-issuance proceeds are charged to additional paid-in capital. When treasury stock is canceled, any excess purchase price over par value is charged directly to retained earnings.

Revenue and Cost Recognition

As discussed under “Recent Accounting Pronouncements” below, on November 1, 2018, we adopted Accounting Standards Codification (“ASC”) Topic 606 “Revenue from Contracts with Customers” (“ASC 606”). As a result of this adoption, we updated our revenue recognition policies effective November 1, 2018, as follows:

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Home sales revenues: Revenues and cost of revenues from home sales are recognized at the time each home is delivered and title and possession are transferred to the buyer. For the majority of our home closings, our performance obligation to deliver a home is satisfied in less than one year from the date a binding sale agreement is signed. In certain states where we build, we are not able to complete certain outdoor features prior to the closing of the home. Effective November 1, 2018, to the extent these separate performance obligations are not complete upon the home closing, we defer a portion of the home sales revenues related to these obligations and subsequently recognize the revenue upon completion of such obligations. As of October 31, 2019, the home sales revenues and related costs we deferred related to these obligations were immaterial. Our contract liabilities, consisting of deposits received from customers for sold but undelivered homes, totaled $385.6 million and $410.9 million at October 31, 2019 and October 31, 2018, respectively. Of the outstanding customer deposits held as of October 31, 2018, we recognized $367.8 million in home sales revenues during the fiscal year ended October 31, 2019.

For our standard attached and detached homes, land, land development, and related costs, both incurred and estimated to be incurred in the future, are amortized to the cost of homes closed based upon the total number of homes to be constructed in each community. Any changes resulting from a change in the estimated number of homes to be constructed or in the estimated land, land development, and related costs subsequent to the commencement of delivery of homes are allocated to the remaining undelivered homes in the community. Home construction and related costs are charged to the cost of homes closed under the specific identification method. The estimated land, common area development, and related costs of master planned communities, including the cost of golf courses, net of their estimated residual value, are allocated to individual communities within a master planned community on a relative sales value basis. Any changes resulting from a change in the estimated number of homes to be constructed or in the estimated costs are allocated to the remaining home sites in each of the communities of the master planned community.

For high-rise/mid-rise projects, land, land development, construction, and related costs, both incurred and estimated to be incurred in the future, are generally amortized to the cost of units closed based upon an estimated relative sales value of the units closed to the total estimated sales value. Any changes resulting from a change in the estimated total costs or revenues of the project are allocated to the remaining units to be delivered.

Land sales revenues: Our revenues from land sales generally consist of: (1) lot sales to third-party builders within our master planned communities; (2) land sales to joint ventures in which we retain an interest; and (3) bulk land sales to third parties of land we have decided no longer meets our development criteria. In general, our performance obligation for each of these land sales is fulfilled upon the delivery of the land, which generally coincides with the receipt of cash consideration from the counterparty. Effective November 1, 2018, in land sale transactions that contain repurchase options, revenues and related costs are not recognized until the repurchase option expires. In addition, when we sell land to a joint venture in which we retain an interest, we do not recognize revenue or gains on the sale to the extent of our retained interest in such joint venture.

Forfeited Customer Deposits: Effective November 1, 2018, forfeited customer deposits are recognized in “Home sales revenues” in our Consolidated Statements of Operations and Comprehensive Income in the period in which we determine that the customer will not complete the purchase of the home and we have the right to retain the deposit.

Sales Incentives: In order to promote sales of our homes, we may offer our home buyers sales incentives. These incentives will vary by type of incentive and by amount on a community-by-community and home-by-home basis. Incentives are reflected as a reduction in home sales revenues. Incentives are recognized at the time the home is delivered to the home buyer and we receive the sales proceeds.

Advertising Costs

We expense advertising costs as incurred. Advertising costs were $38.5 million, $28.5 million, and $26.1 million for the years ended October 31, 2019, 2018, and 2017, respectively.

Warranty and Self-Insurance

Warranty: We provide all of our home buyers with a limited warranty as to workmanship and mechanical equipment. We also provide many of our home buyers with a limited 10-year warranty as to structural integrity. We accrue 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. Adjustments to our warranty liabilities related to homes delivered in prior periods are recorded in the period in which a change in our estimate occurs. Over the past several years, we have had a significant number of warranty claims related primarily to homes built in Pennsylvania and Delaware. See Note 7 – “Accrued Expenses” for additional information regarding these warranty charges.

Self-Insurance: We maintain, and require the majority of our subcontractors to maintain, general liability insurance (including construction defect and bodily injury coverage) and workers’ compensation insurance. These insurance policies protect us against a portion of our risk of loss from claims related to our home building activities, subject to certain self-insured

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retentions, deductibles and other coverage limits (“self-insured liability”). We also provide general liability insurance for our subcontractors in Arizona, California, Colorado, Nevada, Washington, and certain areas of Texas, where eligible subcontractors are enrolled as insureds under our general liability insurance policies in each community in which they perform work. For those enrolled subcontractors, we absorb their general liability associated with the work performed on our homes within the applicable community as part of our overall general liability insurance and our self-insured liability.

We record expenses and liabilities based on the estimated costs required to cover our self-insured liability and the estimated costs of potential claims and claim adjustment expenses that are above our coverage limits or that are not covered by our insurance policies. These estimated costs are based on an analysis of our historical claims and industry data, and include an estimate of claims incurred but not yet reported (“IBNR”).

We engage a third-party actuary that uses our historical claim and expense data, input from our internal legal and risk management groups, as well as industry data, to estimate our liabilities related to unpaid claims, IBNR associated with the risks that we are assuming for our self-insured liability, and other required costs to administer current and expected claims. These estimates are subject to uncertainty due to a variety of factors, the most significant being the long period of time between the delivery of a home to a home buyer and when a structural warranty or construction defect claim may be made, and the ultimate resolution of the claim. Though state regulations vary, construction defect claims may be reported and resolved over a prolonged period of time, which can extend for 10 years or longer. As a result, the majority of the estimated liability relates to IBNR. Adjustments to our liabilities related to homes delivered in prior years are recorded in the period in which a change in our estimate occurs.

The projection of losses related to these liabilities requires actuarial assumptions that are subject to variability due to uncertainties regarding construction defect claims relative to our markets and the types of product we build, insurance industry practices, and legal or regulatory actions and/or interpretations, among other factors. Key assumptions used in these estimates include claim frequencies, severities, and settlement patterns, which can occur over an extended period of time. In addition, changes in the frequency and severity of reported claims and the estimates to settle claims can impact the trends and assumptions used in the actuarial analysis, which could be material to our consolidated financial statements. Due to the degree of judgment required, and the potential for variability in these underlying assumptions, our actual future costs could differ from those estimated, and the difference could be material to our consolidated financial statements.

Stock-Based Compensation

We account for our stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation” (“ASC 718”). We use a lattice model for the valuation of our stock option grants. The option pricing models used are designed to estimate the value of options that, unlike employee stock options and restricted stock units, can be traded at any time and are transferable. In addition to restrictions on trading, employee stock options and restricted stock units may include other restrictions such as vesting periods. Further, such models require the input of highly subjective assumptions, including the expected volatility of the stock price. Stock-based compensation expense is generally included in “Selling, general and administrative” expense in our Consolidated Statements of Operations and Comprehensive Income.

Legal Expenses

Transactional legal expenses for land acquisition and entitlement, and financing are capitalized and expensed over their appropriate life. We expense legal fees related to litigation, warranty and insurance claims when incurred.

Income Taxes

We account for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). Deferred tax assets and liabilities are recorded based on temporary differences between the amounts reported for financial reporting purposes and the amounts reported for income tax purposes. In accordance with the provisions of ASC 740, we assess the realizability of our deferred tax assets. A valuation allowance must be established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. See “Income Taxes – Valuation Allowance” below.

Federal and state income taxes are calculated on reported pre-tax earnings based on current tax law and also include, in the applicable period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provisions differ from the amounts currently receivable or payable because certain items of income and expense are recognized for financial reporting purposes in different periods than for income tax purposes. Significant judgment is required in determining income tax provisions and evaluating tax positions. We establish reserves for income taxes when, despite the belief that our tax positions are fully supportable, we believe that our positions may be challenged and disallowed by various tax authorities. The consolidated tax provisions and related accruals include the impact of such reasonably estimable disallowances as deemed appropriate. To the extent that the probable tax outcome of these matters changes, such changes in estimates will impact the income tax provision in the period in which such determination is made.

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ASC 740 clarifies the accounting for uncertainty in income taxes recognized and prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 requires a company to recognize the financial statement effect of a tax position when it is “more-likely-than-not” (defined as a substantiated likelihood of more than 50%), based on the technical merits of the position, that the position will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to be recognized in the financial statements based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Our inability to determine that a tax position meets the more-likely-than-not recognition threshold does not mean that the Internal Revenue Service (“IRS”) or any other taxing authority will disagree with the position that we have taken.

If a tax position does not meet the more-likely-than-not recognition threshold, despite our belief that our filing position is supportable, the benefit of that tax position is not recognized in the Consolidated Statements of Operations and Comprehensive Income and we are required to accrue potential interest and penalties until the uncertainty is resolved. Potential interest and penalties are recognized as a component of the provision for income taxes. Differences between amounts taken in a tax return and amounts recognized in the financial statements are considered unrecognized tax benefits. We believe that we have a reasonable basis for each of our filing positions and intend to defend those positions if challenged by the IRS or other taxing jurisdiction. If the IRS or other taxing authorities do not disagree with our position, and after the statute of limitations expires, we will recognize the unrecognized tax benefit in the period that the uncertainty of the tax position is eliminated.

Income Taxes — Valuation Allowance

We assess the need for valuation allowances for deferred tax assets in each period based on whether it is more-likely-than-not that some portion of the deferred tax asset would not be realized. If, based on the available evidence, it is more-likely-than-not that such asset will not be realized, a valuation allowance is established against a deferred tax asset. The realization of a deferred tax asset ultimately depends on the existence of sufficient taxable income in either the carryback or carryforward periods under tax law. This assessment considers, among other matters, the nature, consistency, and magnitude of current and cumulative income and losses; forecasts of future profitability; the duration of statutory carryback or carryforward periods; our experience with operating loss and tax credit carryforwards being used before expiration; tax planning alternatives: and outlooks for the U.S. housing industry and broader economy. Changes in existing tax laws or rates could also affect our actual tax results. Due to uncertainties in the estimation process, particularly with respect to changes in facts and circumstances in future reporting periods, actual results could differ from the estimates used in our assessment that could have a material impact on our consolidated results of operations or financial position.

Segment Reporting

We operate in two segments: traditional home building and urban infill. We build and sell homes for detached and attached homes in luxury residential communities located in affluent suburban markets and cater to move-up, empty-nester, active-adult, 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, New Jersey, and New York

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

South:        Florida, Georgia, North Carolina, South Carolina and Texas

West:        Arizona, Colorado, Idaho, Nevada, Oregon, Utah and Washington

California:    California

In fiscal 2018, we acquired land and commenced development activities in the Salt Lake City, Utah and Portland, Oregon markets. We opened communities in these markets in fiscal 2019. In addition, as a result of two acquisitions, we commenced operations in Georgia and South Carolina in fiscal 2019. In fiscal 2018, we discontinued the sale of homes in Minnesota. Our operations in Minnesota were immaterial to the North geographic segment.

Related Party Transactions

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See Note 4, “Investments in Unconsolidated Entities - Rental Property Joint Ventures” for information regarding Toll Brothers Realty Trust.

Recent Accounting Pronouncements

In May 2014, the FASB created ASC 606 with the issuance ASU No. 2014-09, “Revenue from Contracts with Customers,” which provides guidance for revenue recognition. ASC 606 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets. ASC 606 supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition,” and most industry-specific guidance. ASC 606 also supersedes some cost guidance included in ASC Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the previous guidance. These judgments and estimates include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 “Revenue from Contracts with Customers” (“ASU 2015-14”), which delayed the effective date of ASC 606 by one year. ASC 606, as amended by ASU 2015-14, became effective for our fiscal year beginning November 1, 2018, and we adopted the new standard under the modified retrospective transition method applied to contracts that were not completed as of November 1, 2018. We elected to apply the practical expedient which allows us to immediately expense incremental costs of obtaining a contract that would otherwise have been recognized in one year or less. We recognized the cumulative effect, net of tax, of applying ASC 606 as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the previous accounting standards. The adoption of ASC 606 did not have a material impact on our Consolidated Balance Sheet or Consolidated Statement of Operations or Comprehensive Income, and there have been no significant changes to our internal controls, processes, or systems as a result of implementing this new standard. However, the adoption of ASC 606 resulted in the following changes:

• Prior to adoption of ASC 606, we capitalized certain costs related to our marketing efforts, including sales offices and model home upgrades and furnishings within “Inventory” on our Consolidated Balance Sheets and amortized such costs through “Selling, general, and administrative” on our Consolidated Statements of Operations and Comprehensive Income. As of November 1, 2018, we reclassified $104.8 million to “Property, construction, and office equipment, net” on our Consolidated Balance Sheets, primarily related to sales offices and model home improvement costs. The amortization of such costs will remain unchanged and will continue to be included in “Selling, general, and administrative” on our Consolidated Statements of Operations and Comprehensive Income. Additionally, we recorded a net cumulative effect adjustment to retained earnings of approximately $13.2 million for certain other marketing costs that no longer qualify for capitalization under the new guidance, and such costs will be expensed as incurred in the future.

• Prior to adoption of ASC 606, we recorded our land sale revenues, net of their related expenses, within “Other income – net” on our Consolidated Statements of Operations and Comprehensive Income. As of November 1, 2018, we are presenting this activity in income from operations and breaking out the components of land sales revenues and land sales cost of revenues on our Consolidated Statements of Operations and Comprehensive Income. In addition, due to the existence of certain repurchase options in existing agreements to sell lots to third party builders in our master planned communities, both for wholly owned projects as well as projects in which we are a joint venture partner, we recorded a net cumulative effect adjustment to retained earnings of approximately $4.6 million to account for previously settled lots for which the related repurchase option had not yet expired. Because the amount of the deferred earning is not material to our consolidated financial statements, we have elected to recognize the revenue and related expenses for such lots in future periods when such repurchase options expire rather than account for them as leases under ASC 840, “Leases.”

• Prior to adoption of ASC 606, retained customer deposits were classified in “Other income – net” on our Consolidated Statements of Operations and Comprehensive Income. As of November 1, 2018, retained customer deposits, which totaled $13.2 million for our fiscal year ending October 31, 2019, are included in “Home sales revenue” on our Consolidated Statements of Operations and Comprehensive Income. Prior period balances for retained customer deposits have not been reclassified and are not material to our consolidated financial statements.

In February 2017, the FASB issued ASU No. 2017-05, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” (“ASU 2017-05”). ASU 2017-05 is meant to clarify the scope of the original guidance within Subtopic

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610-20 that was issued in connection with ASC 606, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. ASU 2017-05 also added guidance for partial sales of nonfinancial assets. ASU 2017-05 became effective for our fiscal year beginning November 1, 2018 and we adopted ASU 2017-05 concurrent with our adoption of ASC 606. The adoption of ASU 2017-05 did not have a material effect on our consolidated financial statements and disclosures.

In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”), which provides guidance on the classification of restricted cash in the statement of cash flows. ASU 2016-18 became effective for our fiscal year beginning November 1, 2018 and resulted in a change in the presentation to our Consolidated Statement of Cash Flows but did not have a material effect on our other consolidated financial statements or disclosures. As a result of the adoption of ASU No. 2016-18, net cash provided by operations on the Consolidated Statement of Cash Flows for the years ended October 31, 2018 and 2017, decreased by $14.2 million and $103.4 million, respectively.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which is intended to reduce diversity in practice in how certain transactions are classified and makes eight targeted changes to how cash receipts and cash payments are presented in the statement of cash flows. ASU 2016-15 became effective for our fiscal year beginning November 1, 2018 and did not have a material effect on our consolidated financial statements and disclosures.

In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”), which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and provide additional disclosures. In July 2018, the FASB issued ASU No. 2018-11, “Leases: Targeted Improvements” (“ASU 2018-11”), which provides an entity with the option to apply the transition provisions of the new standard at its adoption date instead of at its earliest comparative period presented. ASU 2018-11 also provides an entity with a practical expedient that permits lessors to not separate nonlease components from the associated lease component if certain conditions are met. ASU 2016-02, as amended by ASU 2018-11, is effective for our fiscal year beginning November 1, 2019, at which time we will adopt the new standard using a modified retrospective approach. We expect to elect the package of transition practical expedients, which allows us to carry forward our historical assessment of (1) whether contracts are or contain leases, (2) lease classification, and (3) initial direct costs. In addition, we expect to elect the practical expedient that allows lessees the option to account for lease and non-lease components together as a single component for all classes of underlying assets. Upon adoption, we currently estimate the increase to our balance sheet will be approximately 1% of assets and approximately 2% of liabilities. While the recognition of such lease assets and liabilities will impact our Consolidated Balance Sheet and require additional disclosure, we do not expect that the new standard will have a material impact on our other consolidated financial statements. We also do not expect significant changes to our business processes, systems, or internal controls as a result of implementing the standard. 

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses. ASU 2016-13 is effective for our fiscal year beginning November 1, 2020, with early adoption permitted as of November 1, 2019. We are currently evaluating the impact that the adoption of ASU 2016-13 may have on our consolidated financial statements and disclosures.

2. Acquisitions

In fiscal 2019, we acquired substantially all of the assets and operations of Sharp Residential, LLC (“Sharp”) and Sabal Homes LLC (“Sabal”), for approximately $162.4 million in cash. Sharp operates in metropolitan Atlanta, Georgia; Sabal operates in the Charleston, Greenville, and Myrtle Beach, South Carolina markets. The assets acquired, based on our preliminary purchase price allocations, were primarily inventory, including approximately 2,550 home sites owned or controlled through land purchase agreements. In connection with these acquisitions, we assumed contracts to deliver 204 homes with an aggregate value of $96.1 million. The average price of undelivered homes at the dates of acquisitions was approximately $471,100. As a result of these acquisitions, our selling community count increased by 22 communities.

In November 2016, we acquired all of the assets and operations of Coleman Real Estate Holdings, LLC (“Coleman”) for approximately $83.1 million in cash. The assets acquired were primarily inventory, including approximately 1,750 home sites owned or controlled through land purchase agreements. As part of the acquisition, we assumed contracts to deliver 128 homes with an aggregate value of $38.8 million. The average price of the undelivered homes at the date of acquisition was approximately $303,000. As a result of this acquisition, our selling community count increased by 15 communities at the acquisition date.

The acquisitions discussed above were accounted for as a business combination and were not material to our results of operations or financial condition.

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3. Inventory

Inventory at October 31, 2019 and 2018 consisted of the following (amounts in thousands):

	2019		2018
Land controlled for future communities	$	182,929	$	139,985
Land owned for future communities	868,202		916,616
Operating communities	6,821,917		6,541,618
	$	7,873,048	$	7,598,219

Operating communities include communities offering homes for sale, communities that have sold all available home sites but have not completed delivery of the homes, communities that were previously offering homes for sale but are temporarily closed due to business conditions or non-availability of improved home sites and that are expected to reopen within 12 months of the end of the fiscal year being reported on, and communities preparing to open for sale. The carrying value attributable to operating communities includes the cost of homes under construction, land and land development costs, the carrying cost of home sites in current and future phases of these communities, and the carrying cost of model homes.

Communities that were previously offering homes for sale but are temporarily closed due to business conditions, do not have any remaining backlog, and are not expected to reopen within 12 months of the end of the fiscal period being reported on have been classified as land owned for future communities. Backlog consists of homes under contract but not yet delivered to our home buyers (“backlog”).

Information regarding the classification, number, and carrying value of these temporarily closed communities at October 31, 2019, 2018, and 2017, is provided in the table below ($ amounts in thousands):

	2019		2018		2017
Land owned for future communities:
Number of communities	16		17		14
Carrying value (in thousands)	$	120,857	$	124,426	$	110,732
Operating communities:
Number of communities	1		1		6
Carrying value (in thousands)	$	2,871	$	2,622	$	26,749

We provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable in each of the three fiscal years ended October 31, 2019, 2018, and 2017, as shown in the table below (amounts in thousands):

Charge:	2019		2018		2017
Land controlled for future communities	$	11,285	$	2,820	$	1,949
Land owned for future communities	—		2,185		3,050
Operating communities	31,075		30,151		9,795
	$	42,360	$	35,156	$	14,794

See Note 12, “Fair Value Disclosures,” for information regarding the number of operating communities that we tested for potential impairment, the number of operating communities in which we recognized impairment charges, the amount of impairment charges recognized, and the fair value of those communities, net of impairment charges.

See Note 15, “Commitments and Contingencies,” for information regarding land purchase commitments.

At October 31, 2019, we evaluated our land purchase contracts, including those to acquire land for apartment developments, to determine whether any of the selling entities were VIEs and, if they were, whether we were the primary beneficiary of any of them. Under these land purchase contracts, we do not possess legal title to the land; our maximum exposure to loss is generally limited to deposits paid to the sellers and predevelopment costs incurred; and the creditors of the sellers generally have no recourse against us. At October 31, 2019, we determined that 127 land purchase contracts, with an aggregate purchase price of $2.00 billion, on which we had made aggregate deposits totaling $149.2 million, were VIEs, but that we were not the primary beneficiary of any VIE related to such land purchase contracts. At October 31, 2018, we determined that 110 land purchase contracts, with an aggregate purchase price of $1.88 billion, on which we had made aggregate deposits totaling $120.5 million, were VIEs, but that we were not the primary beneficiary of any VIE related to such land purchase contracts.

F-18

Interest incurred, capitalized, and expensed in each of the three fiscal years ended October 31, 2019, 2018, and 2017, was as follows (amounts in thousands):

	2019			2018			2017
Interest capitalized, beginning of year	$	319,364		$	352,049		$	369,419
Interest incurred	178,035			165,977			175,944
Interest expensed to home sales cost of revenues	(185,045		)	(190,734		)	(172,832		)
Interest expensed to land sales cost of revenues	(1,787		)
Interest expensed in other income				(3,760		)	(4,823		)
Interest reclassified to property, construction and office equipment							(485		)
Interest capitalized on investments in unconsolidated entities	(4,571		)	(7,220		)	(8,824		)
Previously capitalized interest transferred to investments in unconsolidated entities							(8,708		)
Previously capitalized interest on investments in unconsolidated entities transferred to inventory	5,327			3,052			2,358
Interest capitalized, end of year	$	311,323		$	319,364		$	352,049

During fiscal 2017, we reclassified 9.0 million of inventory related to two golf courses to property, construction, and office equipment and such amount was net of $3.5 million transferred to accrued liabilities related to deferred golf membership fees. The amounts were reclassified due to the completion of construction of the facilities and the substantial completion of the master planned communities of which the golf facilities are a part.

4. Investments in Unconsolidated Entities

We have investments in various unconsolidated entities. These entities, which are structured as joint ventures (i) develop land for the joint venture participants and for sale to outside builders (“Land Development Joint Ventures”); (ii) develop for-sale homes (“Home Building Joint Ventures”); (iii) develop luxury for-rent residential apartments, commercial space, and a hotel (“Rental Property Joint Ventures”), which includes our investment in Toll Brothers Realty Trust (the “Trust”); and (iv) invest in distressed loans and real estate and provide financing and land banking to residential builders and developers for the acquisition and development of land and home sites (“Gibraltar Joint Ventures”). In fiscal 2019, 2018 and 2017, we recognized income from the unconsolidated entities in which we had an investment of $24.9 million, $85.2 million, and $116.1 million, respectively.

The table below provides information as of October 31, 2019, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Number of unconsolidated entities	8		4		20		9		41
Investment in unconsolidated entities	$	110,306	$	60,512	$	174,292	$	21,142	$	366,252
Number of unconsolidated entities with funding commitments by the Company	2		1		2		1		6
Company’s remaining funding commitment to unconsolidated entities	$	28,586	$	1,400	$	539	$	8,271	$	38,796

Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at October 31, 2019, regarding the debt financing obtained by category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Total
Number of joint ventures with debt financing	3		2		18		23
Aggregate loan commitments	$	100,859	$	133,453	$	1,393,838	$	1,628,150
Amounts borrowed under commitments	$	88,252	$	133,453	$	1,017,788	$	1,239,493

More specific and/or recent information regarding our investments in and future commitments to these entities is provided below.

F-19

Land Development Joint Ventures

In fiscal 2019, our Land Development Joint Ventures sold approximately 934 lots and recognized revenues of $261.7 million . We acquired 293 of these lots for $137.1 million. Our share of the joint venture income from the lots we acquired was insignificant. We recognized a charge in connection with one Land Development Joint Venture of $1.0 million in fiscal 2019.

In fiscal 2018, our Land Development Joint Ventures sold approximately 986 lots and recognized revenues of $351.4 million. We acquired 259 of these lots for $153.2 million. Our share of the income from the lots we acquired of $1.7 million was deferred by reducing our basis in those lots acquired. We recognized charges in connection with two Land Development Joint Ventures of $6.0 million in fiscal 2018.

In the fourth quarter of fiscal 2019, we entered into a joint venture with an unrelated party to purchase and develop a parcel of land located in Houston, Texas. The joint venture expects to develop approximately 263 home sites on this land in multiple phases. We have a 50% interest in this joint venture. The joint venture intends to sell approximately 50% of the value of the home sites to each of the members of the joint venture. At October 31, 2019, we had an investment of $5.9 million in this joint venture. The joint venture expects to secure third-party financing at a later date.

Home Building Joint Ventures

Our Home Building Joint Ventures are delivering homes in New York City and Jupiter, Florida. In fiscal 2019 and 2018, our Home Building Joint Ventures delivered 186 homes with a sales value of $374.6 million, and 100 homes with a sales value of $148.0 million, respectively.

Subsequent event

In November 2019, one of our Home Building Joint Ventures refinanced its existing $236.5 million construction loan with a $76.6 million post-construction loan that matures November 2021. We and an affiliate of our partner provided certain guarantees under the loan agreement. We estimate that our maximum exposure under these guarantees, if the full amount of the loan commitment was borrowed, would be $76.6 million without taking into account any recoveries from the underlying collateral or any reimbursement from our partner.

Rental Property Joint Ventures

As of October 31, 2019, our Rental Property Joint Ventures owned 25 for-rent apartment projects and a hotel, which are located in multiple metropolitan areas throughout the country. At October 31, 2019, these joint ventures had approximately 2,000 units that were occupied or ready for occupancy, 1,700 units in the lease-up stage, and 4,100 units in the design phase or under development. In addition, we either own or have under contract, approximately 10,900 units, of which 800 units are under active development; we intend to develop these units in joint ventures with unrelated parties in the future.

In fiscal 2019, we entered into five separate joint ventures with unrelated parties to develop luxury for-rent residential apartment projects located in Harrison, New York, Frisco, Texas, Atlanta, Georgia, Orange, California, and Dallas, Texas. Prior to the formation of these joint ventures, we acquired the properties and incurred approximately $145.1 million of land and land development costs. Our partners acquired interests in these entities ranging from 63.5% to 75% for an aggregate amount of $110.0 million and we recognized a gain on land sales of $9.3 million in fiscal 2019. At October 31, 2019, we had an aggregate investment of $48.8 million in these joint ventures. Concurrent with their formation, these joint ventures entered into construction loan agreements for an aggregate amount of $340.1 million. At October 31, 2019, the joint ventures had $39.3 million outstanding borrowings under these construction loan facilities.

In addition, in fiscal 2019, we entered into four separate joint ventures with unrelated parties to develop luxury for-rent residential apartment projects and student housing communities located in Boston, Massachusetts, San Diego, California, Tempe, Arizona and Miami, Florida. We contributed an aggregate of $79.6 million for our initial ownership interests in these joint ventures, which ranged from 50% to 98%. Due to our controlling financial interest, our power to direct the activities that most significantly impact each joint venture’s performance, and/or our obligation to absorb expected losses or receive benefits from these joint ventures, we consolidated these joint ventures at October 31, 2019. The carrying value of these joint ventures’ assets totaling $125.0 million are reflected in “Receivables, prepaid expenses, and other assets” in our Consolidated Balance Sheet as of October 31, 2019. Our partners’ interests aggregating $37.9 million in the joint ventures are reflected as a component of “Noncontrolling interest” in our Consolidated Balance Sheet as of October 31, 2019. These joint ventures intend to obtain additional equity investors and secure third-party financing at a later date. At such time, it is expected that these entities would no longer be consolidated.

In the second quarter of fiscal 2019, we entered into a joint venture with unrelated parties to develop, build, and operate single-family rental communities. As of October 31, 2019, we have committed to invest up to $60.0 million in this joint venture, of which $1.0 million has been invested.

F-20

In fiscal 2019, one of our Rental Property Joint Ventures, in which we had a 25% interest, sold its assets to an unrelated party for $77.8 million. The joint venture had owned, developed, and operated a multifamily residential community in Phoenixville, Pennsylvania. In connection with the sale, the joint venture repaid its entire $47.0 million loan. We received cash of $7.4 million and recognized a gain of $3.8 million, which is included in “Income from unconsolidated entities” in our Consolidated Statements of Operations and Comprehensive Income.

We have an investment in a joint venture in which we have a 50% interest that developed a luxury hotel in conjunction with a high-rise luxury condominium project in New York City developed by a related Home Building Joint Venture. The hotel commenced operations in February 2017. At October 31, 2019, we had an investment of $21.0 million in this joint venture. In the fourth quarter of fiscal 2019, the joint venture refinanced its existing $80.0 million, three-year term loan with a three-year, $120.0 million term loan, of which $110.0 million was advanced to the joint venture at closing. The proceeds from the refinancing were distributed to the members.

In fiscal 2018, we entered into four joint ventures with unrelated parties to develop luxury for-rent residential apartment projects located in suburban Atlanta, Georgia; Belmont, Massachusetts; and Washington, D.C. Prior to the formation of these joint ventures, we acquired the properties and incurred approximately $140.0 million of land and land development costs. Our partners acquired interests in these entities ranging from 50% to 75% for an aggregate amount of $80.3 million. At October 31, 2019, we had an investment of $65.6 million in these joint ventures. In fiscal 2018, several of these joint ventures entered into construction loan agreements for an aggregate amount of $166.1 million to finance the development of these projects. At October 31, 2019, the joint ventures had $156.1 million of outstanding borrowings under the construction loan facilities.

In addition, in fiscal 2018 we entered into a joint venture with an unrelated party to develop a luxury for-rent residential apartment project in a suburb of Boston, Massachusetts. We contributed cash of $15.9 million for our initial 85% ownership interest in this joint venture. Due to our controlling financial interest, our power to direct the activities that most significantly impact the joint venture’s performance, and our obligation to absorb expected losses or receive benefits from the joint venture, we consolidated this joint venture at October 31, 2019. The carrying value of the joint venture’s assets totaling $20.8 million are reflected in “Receivables, prepaid expenses, and other assets” in our Consolidated Balance Sheet at October 31, 2019. Our partner’s 15% interest of $3.1 million in the joint venture is reflected as a component of “Noncontrolling interest” in our Consolidated Balance Sheet as of October 31, 2019. The joint venture expects to admit an additional investor and secure third-party financing at a later date.

In fiscal 2018, three of our Rental Property Joint Ventures sold their assets to unrelated parties for $477.5 million. These joint ventures had owned, developed, and operated multifamily rental properties located in suburban Washington, D.C. and Westborough, Massachusetts, and a student housing community in College Park, Maryland. In connection with these sales, the joint ventures’ aggregate outstanding loan balance of $239.6 million was repaid. From our investment in these joint ventures, we received cash of $79.1 million and recognized gains from these sales of $67.2 million in fiscal 2018, which is included in “Income from unconsolidated entities” in our Consolidated Statement of Operations and Comprehensive Income.

In fiscal 2017, we sold one-half of our 50% interest in two of our Rental Property Joint Ventures to an unrelated party. In connection with these sales, we, along with our partners, recapitalized the joint ventures and refinanced the existing $166.3 million in construction loans with 10-year fixed rate loans totaling $189.0 million. As a result of these transactions, we received cash of $54.9 million and recognized gains of $26.7 million in fiscal 2017, which is included in “Income from unconsolidated entities” in our Consolidated Statements of Operations and Comprehensive Income. At October 31, 2019, we had a 25% interest in each of these joint ventures.

In 1998, we formed the Trust to invest in commercial real estate opportunities. The Trust is effectively owned one-third by us; one-third by current and former members of our senior management; and one-third by an unrelated party. As of October 31, 2019, our investment in the Trust was zero as cumulative distributions received from the Trust have been in excess of the carrying amount of our net investment. We provide development, finance, and management services to the Trust and recognized fees under the terms of various agreements in the amounts of $1.0 million, $2.0 million, and $2.0 million in fiscal 2019, 2018 and 2017, respectively. In fiscal 2019 and 2018, we received distributions of $3.9 million and $27.7 million, respectively, from the Trust, of which the full amount was recognized as income and included in “Income from unconsolidated entities” in our fiscal 2019 and 2018 Consolidated Statements of Operations and Comprehensive Income. No distributions were received from the Trust in fiscal 2017.

Subsequent events

In November 2019, we entered into a joint venture with an unrelated party to develop a for-rent residential apartment project in Dallas, Texas. Prior to the formation of this joint venture, we acquired the property and incurred approximately $19.0 million of land and land development costs. Our partner acquired a 50% interest in this entity for approximately $9.2 million, of which $7.7 million was distributed to us. Our initial investment is $11.9 million. Concurrent with its formation, the joint venture

F-21

entered into a $42.0 million construction loan agreement to finance the development of this project. We and an affiliate of our partner provided certain guarantees under the construction loan agreement. We estimate that our maximum exposure under these guarantees, if the full amount of the loan commitment was borrowed, would be $42.0 million without taking into account any recoveries from the underlying collateral or any reimbursement from our partner.

In December 2019, we sold all of our ownership interest in one of our Rental Property Joint Ventures to our partner for cash of $16.8 million, net of closing costs. The joint venture had owned, developed, and operated multifamily residential apartments in northern New Jersey. In connection with the sale, the joint venture’s existing $76.0 million loan was assumed by our partner. We expect to recognize a gain of approximately $10.0 million in the first quarter of fiscal 2019 from the sale.

In December 2019, we entered into a joint venture with an unrelated party to develop a for-rent student housing community in State College, Pennsylvania. Prior to the formation of this joint venture, we acquired the property and incurred approximately $32.0 million of land and land development costs. Our partner acquired a 70% interest in this entity for approximately $22.2 million, of which $17.9 million was distributed to us. Our initial investment is $12.9 million. Concurrent with its formation, the joint venture entered into a $79.5 million construction loan agreement to finance the development of this project. We and an affiliate of our partner provided certain guarantees under the construction loan agreement. We estimate that our maximum exposure under these guarantees, if the full amount of the loan commitment was borrowed, would be $79.5 million without taking into account any recoveries from the underlying collateral or any reimbursement from our partner.

Gibraltar Joint Ventures

We, through our wholly owned subsidiary, Gibraltar Capital and Asset Management, LLC (“Gibraltar”), have entered into eight ventures with an institutional investor to provide builders and developers with land banking and venture capital, two of which were formed in fiscal 2019. These ventures will finance builders’ and developers’ acquisition and development of land and home sites and pursue other complementary investment strategies. We are also a member in a separate venture with the same institutional investor, which purchased, from Gibraltar, certain foreclosed real estate owned and distressed loans in fiscal 2016. Our ownership interest in these ventures is approximately 25%. We may invest up to $100.0 million in these ventures. As of October 31, 2019, we had an investment of $20.5 million in these ventures.

Guarantees

The unconsolidated entities in which we have investments generally finance their activities with a combination of partner equity and debt financing. In some instances, we and our partners have guaranteed debt of certain unconsolidated entities. These guarantees may include any or all of the following: (i) project completion guarantees, including any cost overruns; (ii) repayment guarantees, generally covering a percentage of the outstanding loan; (iii) carry cost guarantees, which cover costs such as interest, real estate taxes, and insurance; (iv) an environmental indemnity provided to the lender that holds the lender harmless from and against losses arising from the discharge of hazardous materials from the property and non-compliance with applicable environmental laws; and (v) indemnification of the lender from “bad boy acts” of the unconsolidated entity.

In some instances, the guarantees provided in connection with loans to an unconsolidated entity are joint and several. In these situations, we generally have a reimbursement agreement with our partner that provides that neither party is responsible for more than its proportionate share or agreed upon share of the guarantee; however, if the joint venture partner does not have adequate financial resources to meet its obligations under the reimbursement agreement, we may be liable for more than our proportionate share.

We believe that, as of October 31, 2019, in the event we become legally obligated to perform under a guarantee of an obligation of an unconsolidated entity due to a triggering event, the collateral in such entity should be sufficient to repay a significant portion of the obligation. If it is not, we and our partners would need to contribute additional capital to the venture. At October 31, 2019, certain unconsolidated entities have loan commitments aggregating $1.53 billion, of which, if the full amount of the debt obligations were borrowed, we estimate $299.1 million to be our maximum exposure related solely to repayment and carry cost guarantees. At October 31, 2019, the unconsolidated entities had borrowed an aggregate of $1.14 billion, of which we estimate $239.6 million to be our maximum exposure related solely to repayment and carry cost guarantees. The terms of these guarantees generally range from 2 months to 9.7 years. These maximum exposure estimates do not take into account any recoveries from the underlying collateral or any reimbursement from our partners.

As of October 31, 2019, the estimated aggregate fair value of the guarantees provided by us related to debt and other obligations of certain unconsolidated entities was approximately $5.6 million. We have not made payments under any of the guarantees, nor have we been called upon to do so.

F-22

Variable Interest Entities

At October 31, 2019 and 2018, we determined that 18 and 11, respectively, of our joint ventures were VIEs under the guidance within ASC 810. For 13 and 10 of these VIEs as of October 31, 2019 and 2018, respectively, we concluded that we were not the primary beneficiary of these VIEs because the power to direct the activities of such VIEs that most significantly impact their performance was either shared by us and such VIEs’ other partners or such activities were controlled by our partner. For VIEs where the power to direct significant activities is shared, business plans, budgets, and other major decisions are required to be unanimously approved by all members. Management and other fees earned by us are nominal and believed to be at market rates, and there is no significant economic disproportionality between us and other members. The information presented below regarding the investments, commitments, and guarantees in unconsolidated entities deemed to be VIEs is also included in the information provided above.

As of October 31, 2019, we have consolidated five Rental Property Joint Ventures. We had one consolidated Rental Property Joint Venture as of October 31, 2018. The carrying value of these joint ventures’ assets totaled $145.8 million and $19.7 million as reflected in “Receivables, prepaid expenses, and other assets” in our Consolidated Balance Sheet as of October 31, 2019 and 2018, respectively. Our partners’ interests aggregating $41.0 million and $2.8 million in the joint ventures are reflected as a component of “Noncontrolling interest” in our Consolidated Balance Sheet as of October 31, 2019 and 2018, respectively. These joint ventures were determined to be VIEs due to their current inability to finance their activities without additional subordinated financial support as well as our partners’ inability to participate in the significant decisions of the joint venture and their lack of substantive kick-out rights. We further concluded that we are the primary beneficiary of these VIEs due to our controlling financial interest in such ventures as we have the power to direct the activities that most significantly impact the joint ventures’ performance and the obligation to absorb expected losses or receive benefits from the joint ventures. The assets of these VIEs can only be used to settle the obligations of the VIEs. In addition, in certain of the joint ventures, in the event additional contributions are required to be funded to the joint ventures prior to the admission of any additional investor at a future date, we will fund 100% of such contributions, including our partner’s pro rata share, which we expect would be funded through an interest-bearing loan.

At October 31, 2019 and 2018, our investments in our unconsolidated entities deemed to be VIEs, which are included in “Investments in unconsolidated entities” in our Consolidated Balance Sheets, totaled $37.0 million and $33.8 million, respectively. At October 31, 2019, the maximum exposure of loss to our investments in these entities was limited to our investments in the unconsolidated VIEs, except with regard to $76.0 million of loan guarantees and $8.3 million of additional commitments to fund the VIEs. Of our potential exposure for these loan guarantees, $76.0 million is related to repayment and carry cost guarantees, of which $76.0 million was borrowed at October 31, 2019. At October 31, 2018, the maximum exposure of loss to our investments in these entities was limited to our investments in the unconsolidated VIEs, except with regard to $70.0 million of loan guarantees and $10.8 million of additional commitments to fund the VIEs. Of our potential exposure for these loan guarantees, $70.0 million is related to repayment and carry cost guarantees, of which $70.0 million was borrowed at October 31, 2018.

Joint Venture Condensed Financial Information

The Condensed Balance Sheets, as of the dates indicated, and the Condensed Statements of Operations and Comprehensive Income, for the periods indicated, for the unconsolidated entities in which we have an investment, aggregated by type of business, are included below (in thousands).

F-23

Condensed Balance Sheets:

	October 31, 2019
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Cash and cash equivalents	$	23,669	$	38,115	$	20,647	$	3,388	$	85,819
Inventory	247,866		313,991				17,369		579,226
Loan receivables, net							56,545		56,545
Rental properties					1,021,848				1,021,848
Rental properties under development					535,197				535,197
Real estate owned							12,267		12,267
Other assets	96,602		78,916		36,879		364		212,761
Total assets	$	368,137	$	431,022	$	1,614,571	$	89,933	$	2,503,663
Debt, net of deferred financing costs	$	88,050	$	132,606	$	1,006,201			$	1,226,857
Other liabilities	49,302		33,959		84,735		7,831		175,827
Members’ equity	230,785		264,457		523,635		81,686		1,100,563
Noncontrolling interest							416		416
Total liabilities and equity	$	368,137	$	431,022	$	1,614,571	$	89,933	$	2,503,663
Company’s net investment in unconsolidated entities (1)	$	110,306	$	60,512	$	174,292	$	21,142	$	366,252

	October 31, 2018
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Cash and cash equivalents	$	47,409	$	22,834	$	23,750	$	8,469	$	102,462
Inventory	403,670		557,157				13,163		973,990
Loan receivables, net							40,065		40,065
Rental properties					808,785				808,785
Rental properties under development					437,586				437,586
Real estate owned							14,838		14,838
Other assets	93,322		49,723		21,917		1,067		166,029
Total assets	$	544,401	$	629,714	$	1,292,038	$	77,602	$	2,543,755
Debt, net of deferred financing costs	$	125,557	$	284,959	$	735,482	$	—	$	1,145,998
Other liabilities	29,096		72,897		51,992		4,585		158,570
Members’ equity	389,748		271,858		504,564		69,804		1,235,974
Noncontrolling interest							3,213		3,213
Total liabilities and equity	$	544,401	$	629,714	$	1,292,038	$	77,602	$	2,543,755
Company’s net investment in unconsolidated entities (1)	$	176,593	$	65,936	$	171,216	$	18,068	$	431,813

(1) Differences between our net investment in unconsolidated entities and our underlying equity in the net assets of the entities are primarily a result of impairments related to our investments in unconsolidated entities; interest capitalized on our investments; the estimated fair value of the guarantees provided to the joint ventures; unrealized gains on our retained joint venture interests; gains recognized from the sale of our ownership interests; and distributions from entities in excess of the carrying amount of our net investment.

F-24

Condensed Statements of Operations and Comprehensive Income:

	For the year ended October 31, 2019
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures			Gibraltar Joint Ventures			Total
Revenues	$	261,677	$	374,587	$	99,401		$	21,377		$	757,042
Cost of revenues	247,070		333,008		68,502			13,234			661,814
Other expenses	4,662		15,389		58,928			1,880			80,859
Total expenses	251,732		348,397		127,430			15,114			742,673
Gain on disposition of loans and REO								4,383			4,383
Income (loss) from operations	9,945		26,190		(28,029		)	10,646			18,752
Other income	3,079		6,144		16,651			12,793			38,667
Income (loss) before income taxes	13,024		32,334		(11,378		)	23,439			57,419
Income tax provision	193		457								650
Net income (loss) including earnings from noncontrolling interests	12,831		31,877		(11,378		)	23,439			56,769
Less: income attributable to noncontrolling interest								(9,593		)	(9,593		)
Net income (loss) attributable to controlling interest	$	12,831	$	31,877	$	(11,378	)	$	13,846		$	47,176
Company’s equity (deficit) in earnings of unconsolidated entities (2)	$	6,160	$	17,004	$	(824	)	$	2,528		$	24,868

	For the year ended October 31, 2018
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures			Gibraltar Joint Ventures			Total
Revenues	$	351,397	$	148,002	$	121,276		$	19,592		$	640,267
Cost of revenues	317,363		112,469		74,946			17,817			522,595
Other expenses	9,125		8,630		61,502			3,201			82,458
Total expenses	326,488		121,099		136,448			21,018			605,053
Gain on disposition of loans and REO								53,192			53,192
Income (loss) from operations	24,909		26,903		(15,172		)	51,766			88,406
Other income	5,939		2,134		222,744			1,937			232,754
Income before income taxes	30,848		29,037		207,572			53,703			321,160
Income tax provision	86		767								853
Net income including earnings from noncontrolling interests	30,762		28,270		207,572			53,703			320,307
Less: income attributable to noncontrolling interest								(28,297		)	(28,297		)
Net income attributable to controlling interest	$	30,762	$	28,270	$	207,572		$	25,406		$	292,010
Company’s equity in earnings of unconsolidated entities (2)	$	3,392	$	14,069	$	62,204		$	5,575		$	85,240

F-25

	For the year ended October 31, 2017
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures			Gibraltar Joint Ventures			Total
Revenues	$	288,440	$	475,260	$	115,519		$	10,090		$	889,309
Cost of revenues	191,965		286,446		70,108			14,428			562,947
Other expenses	6,508		13,102		59,503			3,942			83,055
Total expenses	198,473		299,548		129,611			18,370			646,002
Gain on disposition of loans and REO								48,079			48,079
Income (loss) from operations	89,967		175,712		(14,092		)	39,799			291,386
Other income	4,723		7,317		1,556			432			14,028
Income (loss) before income taxes	94,690		183,029		(12,536		)	40,231			305,414
Income tax provision	94		7,473		95						7,662
Net income (loss) including earnings from noncontrolling interests	94,596		175,556		(12,631		)	40,231			297,752
Less: income attributable to noncontrolling interest								(20,439		)	(20,439		)
Net income (loss) attributable to controlling interest	94,596		175,556		(12,631		)	19,792			277,313
Company’s equity in earnings of unconsolidated entities (2)	$	13,007	$	77,339	$	21,458		$	4,262		$	116,066

(2) Differences between our equity in earnings of unconsolidated entities and the underlying net income (loss) of the entities are primarily a result of a basis difference of an acquired joint venture interest; distributions from entities in excess of the carrying amount of our net investment; recoveries of previously incurred charges; unrealized gains on our retained joint venture interests; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired.

5. Receivables, Prepaid Expenses, and Other Assets

Receivables, prepaid expenses, and other assets at October 31, 2019 and 2018, consisted of the following (amounts in thousands):

	2019		2018
Expected recoveries from insurance carriers and others	$	114,162	$	126,291
Improvement cost receivable	100,864		96,937
Escrow cash held by our captive title company	32,863		33,471
Properties held for rental apartment and commercial development	367,072		193,015
Prepaid expenses	26,041		23,065
Other	74,439		77,999
	$	715,441	$	550,778

See Note 7, “Accrued Expenses,” for additional information regarding the expected recoveries from insurance carriers and others.

As of October 31, 2019 and 2018, properties held for rental apartment and commercial development include $145.8 million and $19.7 million, respectively, of assets related to consolidated VIEs. See Note 4, “Investments in Unconsolidated Entities” for additional information regarding VIEs.

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6. Loans Payable, Senior Notes, and Mortgage Company Loan Facility

Loans Payable

At October 31, 2019 and 2018, loans payable consisted of the following (amounts in thousands):

	2019			2018
Senior unsecured term loan	$	800,000		$	500,000
Loans payable – other	314,577			188,115
Deferred issuance costs	(3,128		)	(1,314		)
	$	1,111,449		$	686,801

Senior Unsecured Term Loan

At October 31, 2019, we had a $800.0 million, five-year senior unsecured term loan facility (the “Term Loan Facility”) with a syndicate of banks. On November 1, 2018, we amended the Term Loan Facility to, among other things, (i) increase the size of the outstanding term loan from $500.0 million to $800.0 million; (ii) extend the maturity date from August 2021 to November 1, 2023 (which was subsequently extended to November 1, 2024), with no principal payments being required before the maturity date; (iii) provide an accordion feature under which we may, subject to certain conditions set forth in the agreement, increase the Term Loan Facility up to a maximum aggregate amount of $1.0 billion; (iv) revise certain provisions to reduce the interest rate applicable on outstanding borrowings; and (v) modify certain provisions relating to existing financial maintenance and negative covenants. We subsequently amended the maturity date on October 31, 2019 to extend it to November 1, 2024. We and substantially all of our 100%-owned home building subsidiaries are guarantors under the Term Loan Facility.

Under the terms of the Term Loan Facility, at October 31, 2019, our maximum leverage ratio, as defined, may not exceed 1.75 to 1.00, and we are required to maintain a minimum tangible net worth, as defined, of no less than approximately $2.70 billion. Under the terms of the Term Loan Facility, at October 31, 2019, our leverage ratio was approximately 0.50 to 1.00, and our tangible net worth was approximately $5.02 billion. Based upon the limitations related to our repurchase of common stock in the Term Loan Facility, our ability to repurchase our common stock was limited to approximately $3.53 billion as of October 31, 2019. In addition, our ability to pay cash dividends was limited to approximately $2.32 billion as of October 31, 2019.

Under the Term Loan Facility, as amended, we may select interest rates equal to (i) London Interbank Offered Rate (“LIBOR”) plus an applicable margin, (ii) the base rate (as defined in the agreement) plus an applicable margin, or (iii) the federal funds/Euro rate (as defined in the agreement) plus an applicable margin, in each case, based on our leverage ratio. At October 31, 2019, the interest rate on the Term Loan Facility was 3.11% per annum.

We and substantially all of our 100%-owned home building subsidiaries are guarantors under the Term Loan Facility. The Term Loan Facility contains substantially the same financial covenants as the Revolving Credit Facility, as described below.

Revolving Credit Facility

We have a $1.905 billion senior unsecured, five-year revolving credit facility (the “Revolving Credit Facility”) with a syndicate of banks that is scheduled to expire on November 1, 2024. On October 31, 2019, we amended our Revolving Credit Facility to replace our existing $1.295 billion revolving credit facility, which was scheduled to mature in May 2021. Under the amended terms, up to 100% of the commitment is available for letters of credit. The Revolving Credit Facility, as amended, has an accordion feature under which we may, subject to certain conditions set forth in the agreement, increase the Revolving Credit Facility up to a maximum aggregate amount of $2.5 billion. Prior to the amendment, the maximum aggregate amount of the accordion feature was $2.0 billion. We may select interest rates for the Revolving Credit Facility equal to (i) LIBOR plus an applicable margin or (ii) the lenders’ base rate plus an applicable margin, which in each case is based on our credit rating and leverage ratio. At October 31, 2019, the interest rate on outstanding borrowings under the Revolving Credit Facility would have been 3.31% per annum. We are obligated to pay an undrawn commitment fee that is based on the average daily unused amount of the Aggregate Credit Commitment and our credit ratings and leverage ratio. Any proceeds from borrowings under the Revolving Credit Facility may be used for general corporate purposes. We and substantially all of our 100%-owned home building subsidiaries are guarantors under the Revolving Credit Facility.

Under the terms of the Revolving Credit Facility, at October 31, 2019, our maximum leverage ratio (as defined in the credit agreement) may not exceed 1.75 to 1.00, and we are required to maintain a minimum tangible net worth (as defined in the credit agreement) of no less than approximately $2.70 billion. Under the terms of the Revolving Credit Facility, at October 31, 2019, our leverage ratio was approximately 0.50 to 1.00 and our tangible net worth was approximately $5.02 billion. Based upon the limitations related to our repurchase of common stock in the Revolving Credit Facility, our ability to repurchase our

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common stock was limited to approximately $3.53 billion as of October 31, 2019. In addition, under the provisions of the Revolving Credit Facility, our ability to pay cash dividends was limited to approximately $2.32 billion as of October 31, 2019.

At October 31, 2019, we had no outstanding borrowings under the Revolving Credit Facility and had outstanding letters of credit of approximately $177.9 million.

Loans Payable – Other

“Loans payable – other” primarily represent purchase money mortgages on properties we acquired that the seller had financed and various revenue bonds that were issued by government entities on our behalf to finance community infrastructure and our manufacturing facilities. Information regarding our loans payable at October 31, 2019 and 2018, is included in the table below ($ amounts in thousands):

	2019			2018
Aggregate loans payable at October 31	$	314,577		$	188,115
Weighted-average interest rate	4.49		%	4.68		%
Interest rate range	1.26% - 7.00%			1.15% - 7.87%
Loans secured by assets
Carrying value of loans secured by assets	$	314,577		$	152,281
Carrying value of assets securing loans	$	850,381		$	467,164

The contractual maturities of “Loans payable – other” as of October 31, 2019, ranged from two months to 27 years.

Senior Notes

At October 31, 2019 and 2018, senior notes consisted of the following (amounts in thousands):

	2019			2018
4.00% Senior Notes due December 31, 2018	$	—		$	350,000
6.75% Senior Notes due November 1, 2019	—			250,000
5.875% Senior Notes due February 15, 2022	419,876			419,876
4.375% Senior Notes due April 15, 2023	400,000			400,000
5.625% Senior Notes due January 15, 2024	250,000			250,000
4.875% Senior Notes due November 15, 2025	350,000			350,000
4.875% Senior Notes due March 15, 2027	450,000			450,000
4.35% Senior Notes due February 15, 2028	400,000			400,000
3.80% Senior Notes due November 1, 2029	400,000			—
Bond discounts, premiums, and deferred issuance costs, net	(9,978		)	(8,501		)
	$	2,659,898		$	2,861,375

The senior notes are the unsecured obligations of Toll Brothers Finance Corp., our 100%-owned subsidiary. The payment of principal and interest is fully and unconditionally guaranteed, jointly and severally, by us and substantially all of our 100%-owned home building subsidiaries (together with Toll Brothers Finance Corp., the “Senior Note Parties”). The senior notes rank equally in right of payment with all the Senior Note Parties’ existing and future unsecured senior indebtedness, including the Revolving Credit Facility and the Term Loan Facility. The senior notes are structurally subordinated to the prior claims of creditors, including trade creditors, of our subsidiaries that are not guarantors of the senior notes. Each series of senior notes is redeemable in whole or in part at any time at our option, at prices that vary based upon the then-current rates of interest and the remaining original term of the senior notes to be redeemed.

On October 31, 2019, we redeemed, prior to maturity, the $250.0 million of then-outstanding principal amount of 6.75% Senior Notes due November 1, 2019, at par, plus accrued interest.

In September 2019, we issued $400.0 million aggregate principal amount of 3.80% Senior Notes due 2029. The Company received $396.4 million of net proceeds from the issuance of these senior notes.

On November 30, 2018, we redeemed, prior to maturity, the $350.0 million of then-outstanding principal amount of 4.00% Senior Notes due December 31, 2018, at par, plus accrued interest.

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In January 2018, we issued $400.0 million aggregate principal amount of 4.350% Senior Notes due 2028. The Company received $396.4 million of net proceeds from the issuance of these senior notes.

On September 15, 2017, we redeemed all $287.5 million aggregate principal amount of the 0.5% Exchangeable Senior Notes for cash at a redemption price of 100% of their principal amount, plus accrued and unpaid interest. The 0.5% Exchangeable Senior Notes were exchangeable into shares of our common stock at an exchange rate of 20.3749 shares per $1,000 principal amount of notes, corresponding to an initial exchange price of approximately $49.08 per share of common stock. If all of the 0.5% Exchangeable Senior Notes were exchanged, we would have issued approximately 5.9 million shares of our common stock. Shares issuable upon conversion of the 0.5% Exchangeable Senior Notes were included in the calculation of diluted earnings per share.

Mortgage Company Loan Facility

In October 2017, TBI Mortgage^® Company (“TBI Mortgage”), our wholly owned mortgage subsidiary, entered into a mortgage warehousing agreement (“Warehousing Agreement”) with a bank to finance the origination of mortgage loans by TBI Mortgage. The Warehousing Agreement is accounted for as a secured borrowing under ASC 860, “Transfers and Servicing.” In December 2018, the Warehousing Agreement was amended to provide for loan purchases up to $75.0 million, subject to certain sublimits. In addition, the Warehousing Agreement, as amended, provides for an accordion feature under which TBI Mortgage may request that the aggregate commitments under the Warehousing Agreement be increased to an amount up to $150.0 million for a short period of time. Prior to the December 2018 amendment, the Warehousing Agreement was operating pursuant to the December 2017 amendment which had substantially similar terms to the December 2018 amendment. The Warehousing Agreement, as amended, expires on December 6, 2019, and borrowings thereunder bear interest at LIBOR plus 1.90% per annum. At October 31, 2019, the interest rate on the Warehousing Agreement was 3.68% per annum. In addition, we are subject to an under usage fee based on outstanding balances, as defined in the Warehousing Agreement. Borrowings under this facility are included in the fiscal 2020 maturities.

At each of October 31, 2019 and 2018, there was $150.0 million outstanding under the Warehousing Agreement, which are included in liabilities in our Consolidated Balance Sheets. At October 31, 2019 and 2018, amounts outstanding under the agreement were collateralized by $208.6 million and $163.2 million, respectively, of mortgage loans held for sale, which are included in assets in our Consolidated Balance Sheets. As of October 31, 2019, there were no aggregate outstanding purchase price limitations reducing the amount available to TBI Mortgage. There are several restrictions on purchased loans under the agreement, including that they cannot be sold to others, they cannot be pledged to anyone other than the agent, and they cannot support any other borrowing or repurchase agreements.

Subsequent event

In December 2019, TBI Mortgage amended the Warehousing Agreement to extend the expiration date to December 4, 2020 on substantially the same terms as the existing agreement.

General

As of October 31, 2019, the annual aggregate maturities of our loans and notes during each of the next five fiscal years are as follows (amounts in thousands):

	Amount
2020	$	234,096
2021	$	52,863
2022	$	437,818
2023	$	421,611
2024	$	290,745

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7. Accrued Expenses

Accrued expenses at October 31, 2019 and 2018, consisted of the following (amounts in thousands):

	2019		2018
Land, land development and construction	$	192,658	$	213,641
Compensation and employee benefits	183,592		159,374
Escrow liability	31,587		32,543
Self-insurance	193,405		168,012
Warranty	201,886		258,831
Deferred income	51,678		42,179
Interest	31,307		40,325
Commitments to unconsolidated entities	9,283		10,553
Other	55,536		48,123
	$	950,932	$	973,581

At the time each home is closed and title and possession are transferred to the home buyer, we record an initial accrual for expected warranty costs on that home. Our initial accrual for expected warranty costs is based upon historical warranty claim experience. Adjustments to our warranty liabilities related to homes delivered in prior periods are recorded in the period in which a change in our estimate occurs. The table below provides a reconciliation of the changes in our warranty accrual during fiscal 2019, 2018, and 2017 as follows (amounts in thousands):

	2019			2018			2017
Balance, beginning of year	$	258,831		$	329,278		$	370,992
Additions - homes closed during the year	35,475			37,045			31,798
Addition - liabilities acquired	855						1,495
Increase in accruals for homes closed in prior years	6,023			6,162			6,226
Reclassification from other accruals							1,082
Charges incurred	(99,298		)	(113,654		)	(82,315		)
Balance, end of year	$	201,886		$	258,831		$	329,278

Since fiscal 2014, we have received water intrusion claims from owners of homes built since 2002 in communities located in Pennsylvania and Delaware (which are in our Mid-Atlantic region). During fiscal 2019, we continued to receive water intrusion claims from homeowners in this region, mostly related to older homes, and we continue to perform review procedures to assess, among other things, the number of affected homes, whether repairs are likely to be required, and the extent of such repairs.

Our review process, conducted quarterly, includes an analysis of many factors applicable to these communities to determine whether a claim is likely to be received and the estimated costs to resolve any such claim, including: the closing dates of the homes; the number of claims received; our inspection of homes; an estimate of the number of homes we expect to repair; the type and cost of repairs that have been performed in each community; the estimated costs to remediate pending and future claims; the expected recovery from our insurance carriers and suppliers; and the previously recorded amounts related to these claims. We also monitor legal developments relating to these types of claims and review the volume, relative merits and adjudication of claims in litigation or arbitration.

As of October 31, 2019, our recorded aggregate estimated repair costs to be incurred for known and unknown water intrusion claims was $324.4 million, which was unchanged from October 31, 2018, and our recorded aggregate expected recoveries from insurance carriers and suppliers were approximately $152.6 million, which was also unchanged from October 31, 2018. Our recorded remaining estimated repair costs, which reflects a reduction for the aggregate amount expended to resolve claims, were approximately $124.6 million at October 31, 2019 and $177.6 million at October 31, 2018. Our recorded remaining expected recoveries from insurance carriers and suppliers were approximately $97.9 million at October 31, 2019 and $109.3 million at October 31, 2018. As noted above, our review process includes a number of estimates that are based on assumptions with uncertain outcomes, including, but not limited to, the number of homes to be repaired, the extent of repairs needed, the repair procedures employed, the cost of those repairs, outcomes of litigation or arbitrations, and expected recoveries from insurance carriers and suppliers. Due to the degree of judgment required in making these estimates and the inherent uncertainty in potential outcomes, it is reasonably possible that our actual costs and recoveries could differ from those recorded and such

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differences could be material. In addition, due to such uncertainty, we are unable to estimate the range of any such differences. With respect to our insurance receivables, disputes between homebuilders and carriers over coverage positions relating to construction defect claims are common, and resolution of claims with carriers involves the exchange of significant amounts of information and frequently involves legal action. While our primary insurance carrier has funded substantially all of the water intrusion claims that we have submitted to it to date, other insurance carriers have disputed coverage for the same claims under policies that are substantially the same. As a result, we entered arbitration proceedings during the third quarter of fiscal 2019 with these carriers. Based on the legal merits that support our pending insurance claims, review by legal counsel, our history of collecting significant amounts funded by our primary carrier under policies that are substantially the same, and the high credit ratings of our insurance carriers, we believe collection of our remaining recorded insurance receivables is probable. However, due to the complexity of the underlying claims and the variability of the other factors described above, it is reasonably possible that our actual insurance recoveries could materially differ from those recorded. Resolution of these known and unknown claims is expected to take several years.

8. Income Taxes

The following table provides a reconciliation of our effective tax rate from the federal statutory tax rate for the fiscal years ended October 31, 2019, 2018, and 2017 ($ amounts in thousands):

	2019				2018				2017
	$		%*		$		%*		$		%*
Federal tax provision at statutory rate	165,306		21.0		217,914		23.3		285,009		35.0
State tax provision, net of federal benefit	37,898		4.8		47,073		5.0		34,656		4.3
Domestic production activities deduction			—		(18,168	)	(1.9	)	(12,835	)	(1.6	)
Other permanent differences	188		—		(3,726	)	(0.4	)	(1,468	)	(0.2	)
Reversal of accrual for uncertain tax positions	(5,348	)	(0.7	)	(4,741	)	(0.5	)	(3,981	)	(0.5	)
Accrued interest on anticipated tax assessments	453		0.1		737		0.1		984		0.1
Increase in unrecognized tax benefits	2,153		0.3		1,122		0.1				—
Valuation allowance — reversed			—				—		(32,154	)	(3.9	)
Changes in tax law	(523	)	(0.1	)	(38,740	)	(4.1	)			—
Excess stock compensation benefit	(2,143	)	(0.3	)	(4,236	)	(0.5	)			—
Other	(821	)	(0.1	)	(11,470	)	(1.2	)	8,605		1.1
Income tax provision*	197,163		25.0		185,765		19.9		278,816		34.2

* Due to rounding, amounts may not add.

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law, which changed many longstanding foreign and domestic corporate and individual tax rules, as well as rules pertaining to the deductibility of employee compensation and benefits. The Tax Act, among other changes, reduced the corporate income tax rate from 35% to 21% and repealed the domestic production activities deduction effective for tax years beginning after December 31, 2017. For companies with a fiscal year that does not end on December 31, the change in law requires the application of a blended tax rate for the year of the change. Our blended tax rate for our fiscal year ending October 31, 2018 was 23.3%. Thereafter, the applicable statutory rate will be 21%. ASC 740, “Income Taxes” (“ASC 740”), requires all companies to reflect the effects of the new law in the period in which the law was enacted. Accordingly, we reduced the statutory tax rate applied to earnings from 35% in fiscal 2017 to 23.3% in fiscal 2018 and to 21% in fiscal 2019. In addition, we remeasured our net deferred tax liability for the tax law change, which resulted in an income tax benefit of $35.5 million in fiscal 2018.

We are subject to state tax in the jurisdictions in which we operate. We estimate our state tax liability based upon the individual taxing authorities’ regulations, estimates of income by taxing jurisdiction, and our ability to utilize certain tax-saving strategies. Based on our estimate of the allocation of income or loss among the various taxing jurisdictions and changes in tax regulations and their impact on our tax strategies, we estimated that our rate for state income taxes, before federal benefit, will be 6.1% in fiscal 2019. Our state income tax rate, before federal benefit, was 6.6% and 6.5% in fiscal 2018 and 2017, respectively.

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The following table provides information regarding the provision (benefit) for income taxes for each of the fiscal years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019		2018			2017
Federal	$	161,904	$	157,836		$	278,095
State	35,259		27,929			721
	$	197,163	$	185,765		$	278,816
Current	$	94,399	$	207,695		$	93,106
Deferred	102,764		(21,930		)	185,710
	$	197,163	$	185,765		$	278,816

The components of income taxes payable at October 31, 2019 and 2018 are set forth below (amounts in thousands):

	2019		2018
Current	$	7,897	$	28,804
Deferred	95,074		2,155
	$	102,971	$	30,959

The following table provides a reconciliation of the change in the unrecognized tax benefits for the years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019			2018			2017
Balance, beginning of year	$	12,222		$	16,993		$	30,272
Increase in benefit as a result of tax positions taken in prior years	2,148			2,140			1,575
Increase in benefit as a result of tax positions taken in current year	1,126			949			431
Decrease in benefit as a result of settlements	(2,670		)	(4,707		)	(9,174		)
Decrease in benefit as a result of lapse of statute of limitations	(4,929		)	(3,153		)	(6,111		)
Balance, end of year	$	7,897		$	12,222		$	16,993

The statute of limitations has expired on our federal tax returns for fiscal years through 2015.

Our unrecognized tax benefits are included in the current portion of “Income taxes payable” on our Consolidated Balance Sheets. If these unrecognized tax benefits reverse in the future, they would have a beneficial impact on our effective tax rate at that time. During the next 12 months, it is reasonably possible that the amount of unrecognized tax benefits will change, but we are not able to provide a range of such change. The anticipated changes will be principally due to the expiration of tax statutes, settlements with taxing jurisdictions, increases due to new tax positions taken, and the accrual of estimated interest and penalties.

The amounts accrued for interest and penalties are included in the current portion of “Income taxes payable” on our Consolidated Balance Sheets. The following table provides information as to the amounts recognized in our tax provision, before reduction for applicable taxes and reversal of previously accrued interest and penalties, of potential interest and penalties in the fiscal years ended October 31, 2019, 2018, and 2017, and the amounts accrued for potential interest and penalties at October 31, 2019 and 2018 (amounts in thousands):

Expense recognized in the Consolidated Statements of Operations and Comprehensive Income
Fiscal year
2019	$	593
2018	$	1,152
2017	$	1,513

Accrued at:
October 31, 2019	$	1,169
October 31, 2018	$	2,115

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The components of net deferred tax assets and liabilities at October 31, 2019 and 2018 are set forth below (amounts in thousands):

	2019			2018
Deferred tax assets:
Accrued expenses	$	54,162		$	54,531
Impairment charges	43,583			51,124
Inventory valuation differences	55,313			42,765
Stock-based compensation expense	23,928			27,949
Amounts related to unrecognized tax benefits	311			1,197
State tax, net operating loss carryforwards	67,718			73,288
Other	18			125
Total assets	245,033			250,979
Deferred tax liabilities:
Capitalized interest	44,196			43,982
Deferred income	277,005			181,839
Expenses taken for tax purposes not for book	3,571			5,477
Depreciation	5,024			6,877
Deferred marketing	10,311			14,959
Total liabilities	340,107			253,134
Net deferred tax liabilities	(95,074		)	(2,155		)

In accordance with GAAP, we assess whether a valuation allowance should be established based on our determination of whether it is more-likely-than-not that some portion or all of the deferred tax assets would not be realized. At October 31, 2019 and 2018, we determined that it was more-likely-than-not that our deferred tax assets would be realized. Accordingly, at October 31, 2019 and 2018, we did not have valuation allowances recorded against our federal or state deferred tax assets. During fiscal 2017, due to improved operating results, we reversed $32.2 million of state deferred tax asset valuation allowances.

We file tax returns in the various states in which we do business. Each state has its own statutes regarding the use of tax loss carryforwards. Some of the states in which we do business do not allow for the carryforward of losses, while others allow for carryforwards for 5 years to 20 years.

9. Stockholders’ Equity

Our authorized capital stock consists of 400 million shares of common stock, $0.01 par value per share (“common stock”), and 15 million shares of preferred stock, $0.01 par value per share. At October 31, 2019, we had 140.9 million shares of common stock issued and outstanding, 6.7 million shares of common stock reserved for outstanding stock options and restricted stock units, 7.7 million shares of common stock reserved for future stock option and award issuances, and 407,000 shares of common stock reserved for issuance under our employee stock purchase plan. As of October 31, 2019, no shares of preferred stock have been issued.

Cash Dividends

On February 21, 2017, our Board of Directors approved the initiation of quarterly cash dividends to shareholders. During the fiscal years ended October 31, 2019 and October 31, 2018, we declared and paid aggregate cash dividends of $0.44 and $0.41 per share, respectively, to our shareholders. Subsequent to October 31, 2019, we declared a quarterly cash dividend of $0.11 per share which will be paid on January 24, 2020 to shareholders of record on the close of business on January 10, 2020.

Stock Repurchase Program

In each year since fiscal 2017, our Board of Directors has renewed its authorization to repurchase up to 20 million shares of our common stock in open market transactions, privately negotiated transactions (including accelerated share repurchases), issuer tender offers or other financial arrangements or transactions for general corporate purposes, including to obtain shares for the Company’s equity award and other employee benefit plans. Most recently, on December 11, 2019, our Board of Directors authorized the repurchase of 20 million shares of our common stock and terminated, effective the same date, the existing

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authorization that had been in effect since December 12, 2018. The Board of Directors did not fix any expiration date for this repurchase program.

The following table provides information about the share repurchase programs for the fiscal years ended October 31, 2019, 2018, and 2017:

	2019		2018		2017
Number of shares purchased (in thousands)	6,619		12,108		7,694
Average price per share	$	35.28	$	41.56	$	37.81
Remaining authorization at October 31 (in thousands)	13,953		10,989		8,144

Subsequent to October 31, 2019, we repurchased approximately 3.6 million shares of our common stock at an average price of $39.58 per share, substantially all of which were purchased under the repurchase program authorized by our Board of Directors on December 11, 2019.

Transfer Restriction

On March 17, 2010, our Board of Directors adopted a Certificate of Amendment to the Second Restated Certificate of Incorporation of the Company (the “Certificate of Amendment”). The Certificate of Amendment includes an amendment approved by our stockholders at the 2010 Annual Meeting of Stockholders that restricts certain transfers of our common stock. The Certificate of Amendment’s transfer restrictions generally restrict any direct or indirect transfer of our common stock if the effect would be to increase the direct or indirect ownership of any Person (as defined in the Certificate of Amendment) from less than 4.95% to 4.95% or more of our common stock or increase the ownership percentage of a Person owning or deemed to own 4.95% or more of our common stock. Any direct or indirect transfer attempted in violation of this restriction would be void as of the date of the prohibited transfer as to the purported transferee.

10. Stock-Based Benefit Plans

We grant stock options, restricted stock, and various types of restricted stock units to our employees and our nonemployee directors under our stock incentive plans. On March 12, 2019, shareholders approved the Toll Brothers, Inc. 2019 Omnibus Incentive Plan (the “Omnibus Plan”), which, succeeded the Toll Brothers, Inc. Stock Incentive Plan for Employees (2014) and the Toll Brothers, Inc. Stock Incentive Plan for Non-Executive Directors (2016) with respect to prospective equity awards, and no additional equity awards may be granted under such prior plans. As a result, the Omnibus Plan is the sole plan that new equity awards may be granted to employees (including executive officers), directors and other eligible participants under the plan. The Omnibus Plan provides for the granting of incentive stock options (solely to employees) and nonqualified stock options with a term of up to 10 years at a price not less than the market price of the stock at the date of grant. The Omnibus Plan also provide for the issuance of stock appreciation rights and restricted and unrestricted stock awards and stock units, which may be performance-based. At October 31, 2019, 2018, and 2017, we had 7.7 million; 5.1 million; and 5.8 million shares, respectively, available for grant under the Omnibus Plan.

Prior to the adoption of the Omnibus Plan, the Company had granted equity awards under four separate stock incentive plans for employees, officers, and directors with respect to which equity awards remained outstanding as of October 31, 2019. No additional equity awards may be granted under these plans. Stock options granted under these plans were made with a term of up to 10 years at a price not less than the market price of the stock at the date of grant. Stock options and restricted stock units granted under these plans generally vested over a four-year period for employees and a two-year period for nonemployee directors.

The following table provides information regarding the amount of total stock-based compensation expense recognized by us for fiscal 2019, 2018, and 2017 (amounts in thousands):

	2019		2018		2017
Total stock-based compensation expense recognized	$	26,180	$	28,312	$	28,466
Income tax benefit recognized	$	6,749	$	7,902	$	11,125

At October 31, 2019, 2018, and 2017, the aggregate unamortized value of outstanding stock-based compensation awards was approximately $18.7 million, $20.9 million, and $24.2 million, respectively.

Information about our more significant stock-based compensation programs is outlined below.

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Stock Options:

Stock options granted to employees generally vest over a four-year period, although certain grants may vest over a longer or shorter period. Stock options granted to nonemployee directors generally vest over a two-year period. Shares issued upon the exercise of a stock option are either from shares held in treasury or newly issued shares.

The fair value of each option award is estimated on the date of grant using a lattice-based option valuation model that uses ranges of assumptions noted in the following table. Expected volatilities were based on implied volatilities from traded options on our stock, historical volatility of our 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 ranges set forth below result 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 following table summarizes the weighted-average assumptions and fair value used for stock option grants in each of the fiscal years ended October 31, 2019, 2018, and 2017:

	2019	2018	2017
Expected volatility	28.61% - 31.34%	27.66% - 31.83%	29.93% - 41.05%
Weighted-average volatility	30.46%	30.33%	34.72%
Risk-free interest rate	2.65% - 2.76%	2.17% - 2.35%	1.96% - 2.52%
Expected life (years)	4.63 - 8.50	5.00 - 8.50	4.60 - 9.24
Dividends	1.36%	0.67%	none
Weighted-average fair value per share of options granted	$10.22	$16.09	$12.16

The fair value of stock option grants is recognized evenly over the vesting period of the options or over the period between the grant date and the time the option becomes nonforfeitable by the employee, whichever is shorter. Information regarding the stock compensation expense related to stock options for fiscal 2019, 2018 and 2017 was as follows (amounts in thousands):

	2019		2018		2017
Stock compensation expense recognized - options	$	5,181	$	7,497	$	10,337

At October 31, 2019, total compensation cost related to nonvested stock option awards not yet recognized was approximately $4.7 million, and the weighted-average period over which we expect to recognize such compensation costs was approximately 1.2 years.

The following table summarizes stock option activity for our plans during each of the fiscal years ended October 31, 2019, 2018, and 2017 (amounts in thousands, except per share amounts):

	2019				2018				2017
	Number of options		Weighted- average exercise price		Number of options		Weighted- average exercise price		Number of options		Weighted- average exercise price
Balance, beginning	5,503		$	28.84	6,120		$	27.60	8,514		$	26.36
Granted	344		32.42		210		47.84		595		31.61
Exercised	(1,044	)	21.87		(797	)	24.16		(2,863	)	24.54
Canceled	(23	)	34.47		(30	)	33.08		(126	)	32.10
Balance, ending	4,780		$	30.59	5,503		$	28.84	6,120		$	27.60
Options exercisable, at October 31,	3,799		$	29.52	4,231		$	27.03	4,266		$	25.42

The weighted average remaining contractual life (in years) for options outstanding and exercisable at October 31, 2019, was 4.8 and 4.0, respectively.

The intrinsic value of options outstanding and exercisable is the difference between the fair market value of our common stock on the applicable date (“Measurement Value”) and the exercise price of those options that had an exercise price that was less than the Measurement Value. The intrinsic value of options exercised is the difference between the fair market value of our common stock on the date of exercise and the exercise price.

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The following table provides information pertaining to the intrinsic value of options outstanding and exercisable at October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019		2018		2017
Intrinsic value of options outstanding	$	45,551	$	30,477	$	112,886
Intrinsic value of options exercisable	$	39,350	$	29,010	$	87,978

Information pertaining to the intrinsic value of options exercised and the fair market value of options that became vested or modified in each of the fiscal years ended October 31, 2019, 2018, and 2017, is provided below (amounts in thousands):

	2019		2018		2017
Intrinsic value of options exercised	$	16,491	$	18,165	$	32,951
Fair market value of options vested	$	7,723	$	10,007	$	10,897

Our stock option plans permit optionees to exercise stock options using a “net exercise” method at the discretion of the Executive Compensation Committee of the Board of Directors (“Executive Compensation Committee”). In a net exercise, we withhold from the total number of shares that otherwise would be issued to an optionee 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 minimum income tax withholdings and remit the remaining shares to the optionee. In fiscal 2018, the net exercise method was not utilized to exercise options.

The following table provides information regarding the use of the net exercise method for fiscal 2019 and 2017:

	2019		2017
Options exercised	33,250		15,000
Shares withheld	21,842		14,472
Shares issued	11,408		528
Average fair market value per share withheld	$	33.03	$	32.98
Aggregate fair market value of shares withheld (in thousands)	$	721	$	477

Performance-Based Restricted Stock Units:

In fiscal 2019, 2018, and 2017, the Executive Compensation Committee approved awards of performance-based restricted stock units (“Performance-Based RSUs”) relating to shares of our common stock to certain members of our senior management. The number of shares earned for Performance-Based RSUs are based on the attainment of certain operational performance metrics approved by the Executive Compensation Committee in the year of grant. The number of shares underlying the Performance-Based RSUs that may be issued to the recipients ranges from, 0% to 150% for grants awarded in fiscal 2019 and 0% to 110% for grants awarded in fiscal 2018 and prior, of the base award depending on actual achievement as compared to the target performance goals. Shares earned based on actual performance generally vest pro-rata over a four-year period provided the recipients continue to be employed by us 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 our common stock to be issued multiplied by the closing price of our common stock on the New York Stock Exchange (“NYSE”) on the date the Performance-Based RSU awards were approved by the Executive Compensation Committee (“Valuation Date”). We evaluate the performance goals quarterly and estimate the number of shares underlying the Performance-Based RSUs that are probable of being issued. The following table provides information regarding the issuance, valuation assumptions, and amortization of the Performance-Based RSUs issued in fiscal 2019, 2018, and 2017:

	2019		2018		2017
Number of shares underlying Performance-Based RSUs to be issued	158,721		135,554		168,417
Aggregate number of Performance-Based RSUs outstanding at October 31	645,538		786,857		940,117
Closing price of our common stock on Valuation Date	$	34.86	$	47.84	$	31.61
Aggregate grant date fair value of Performance-Based RSUs issued (in thousands)	$	5,533	$	6,485	$	5,324
Performance-Based RSU expense recognized (in thousands)	$	5,514	$	6,949	$	7,031
Unamortized value of Performance-Based RSUs at October 31 (in thousands)	$	3,431	$	3,824	$	4,599

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Shares earned with respect to Performance-Based RSUs issued in December 2012, 2013, and 2014 were delivered in fiscal 2017, 2018, and 2019, respectively. The recipients of these Performance-Based RSUs elected to use a portion of the shares underlying the Performance-Based RSUs to pay the required income withholding taxes on the payout. In fiscal 2019, the gross value of the payout was $9.7 million (300,040 shares), the minimum income tax withholding was $4.0 million (123,409 shares) and the net value of the shares delivered was $5.7 million (176,631 shares). In fiscal 2018, the gross value of the payout was $13.7 million (288,814 shares), the minimum income tax withholding was $6.0 million (126,330 shares) and the net value of the shares delivered was $7.7 million (162,484 shares). In fiscal 2017, the gross value of the payout was $9.6 million (302,514 shares), the minimum income tax withholding was $4.2 million (133,098 shares) and the net value of the shares delivered was $5.4 million (169,416 shares).

Total Shareholder Return Restricted Stock Units:

In fiscal 2019, 2018, and 2017, the Executive Compensation Committee approved awards of relative total shareholder return performance-based restricted stock units (“TSR RSUs”) relating to 48,710, 39,411 and 46,361 target shares, respectively, of our common stock to certain members of our senior management. Shares underlying the TSR RSUs granted are earned by comparing our total shareholder return during specified performance periods to the total shareholder returns of companies in a performance peer group as defined in the award document. The specified performance periods are as follows:

	Performance Period	Target Number of TSR RSUs issued
Fiscal 2019	November 1, 2018 to October 31, 2021	48,710
Fiscal 2018	November 1, 2017 to October 31, 2020	39,411
Fiscal 2017	November 1, 2016 to October 31, 2019	46,361

The TSR RSUs generally vest at the end of a 3-year period provided the recipients continue to be employed by us as specified in the award document. Based upon our ranking in the performance peer group, the recipient of the TSR RSUs may earn a total award ranging from 0% to 150% for awards granted in fiscal 2019 and 0% to 200% for awards granted in fiscal 2018 and prior, of the target number of TSR RSUs granted. In fiscal 2019, recipients of the fiscal 2017 TSR RSUs earned 0% of the target based on total shareholder return ranking in the performance peer group during the three-year period ending October 31, 2019. In fiscal 2018, recipients earned 76.81% of the 52,679 target TSR RSUs awarded in fiscal 2016 based upon our total shareholder return ranking in the performance peer group during the three-year period ended October 31, 2018. In fiscal 2017, recipients of earned 83.05% of the 57,230 target TSR RSUs awarded in fiscal 2016 based upon our total shareholder return ranking in the performance peer group during the two-year period ended October 31, 2017.

We estimated the fair value of the TSR RSUs at the grant date using a Monte Carlo simulation. The following table summarizes the assumptions used in the Monte Carlo simulation and the fair value per share of the TSR RSUs granted in fiscal 2019, 2018, and 2017:

	2019	2018	2017
Weighted-average volatility	29.06%	26.58%	26.91%
Risk-free interest rate	2.64%	1.92%	1.52%
Dividends	none	none	none
Weighted-average fair value per share of TSR RSUs	$36.46	$52.62	$39.21

The length of each performance period was used as the expected term in the simulation for each respective tranche.

The following table provides information on expense recognized and the unamortized value of our TSR RSUs for fiscal 2019, 2018, and 2017 (amounts in thousands):

	2019		2018		2017
TSR RSUs expense recognized	$	1,673	$	2,502	$	3,400
Unamortized value of TSR RSUs at October 31	$	1,875	$	1,773	$	2,200

Our stock incentive plans permit us to withhold from the total number of shares that otherwise would be issued to a TSR RSU 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. The following table provides

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information regarding the number of shares withheld, the income tax withholding due, and the remaining shares issued to the recipients for fiscal 2019 and 2018:

	2019		2018
Number of shares withheld	16,643		13,974
Income tax withholdings due	$	537,902	$	470,364
Remaining shares issued to the recipients	23,817		33,553

Time-Based Restricted Stock Units:

In fiscal 2019, 2018, and 2017, we issued time-based restricted stock units (“RSUs”) to various officers, employees, and nonemployee directors. These RSUs generally vest in annual installments over a two- to four-year period. The value of the RSUs was determined to be equal to the number of shares of our common stock underlying the RSUs multiplied by the closing price of our common stock on the NYSE on the date the RSUs were awarded. The following table provides information regarding these RSUs for fiscal 2019, 2018, and 2017:

	2019		2018		2017
Time-Based RSUs issued:
Number of RSUs issued	449,380		296,790		377,564
Weighted average closing price per share of our common stock on date of issuance	$	33.04	$	47.84	$	31.61
Aggregate fair value of RSUs issued (in thousands)	$	14,848	$	14,198	$	11,935
Time-Based RSU expense recognized (in thousands):	$	13,627	$	11,193	$	7,572

	2019		2018		2017
At October 31:
Aggregate number of Time-Based RSUs outstanding	1,137,936		850,853		673,224
Cumulative unamortized value of Time-Based RSUs (in thousands)	$	8,694	$	8,818	$	6,783

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. The following table provides information regarding the number of shares withheld, the income tax withholding due, and the remaining shares issued to the recipients for fiscal 2019, 2018, and 2017:

	2019		2018		2017
Number of shares withheld	29,681		23,289		20,400
Income tax withholdings due	$	1,042	$	1,145	$	664,300
Remaining shares issued to the recipients	82,795		58,552		52,757

Employee Stock Purchase Plan

Our employee stock purchase plan enables substantially all employees to purchase our common stock at 95% of the market price of the stock on specified offering dates without restriction or at 85% of the market price of the stock on specified offering dates subject to restrictions. The plan, which terminates in December 2027, provides that 500,000 shares be reserved for purchase. At October 31, 2019, 407,000 shares were available for issuance.

The following table provides information regarding our employee stock purchase plan for fiscal 2019, 2018, and 2017:

	2019		2018		2017
Shares issued	41,744		35,471		33,314
Average price per share	$	31.80	$	34.08	$	32.25
Compensation expense recognized (in thousands)	$	184	$	171	$	147

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11. Earnings Per Share Information

Information pertaining to the calculation of earnings per share for each of the fiscal years ended October 31, 2019, 2018, and 2017, is as follows (amounts in thousands):

	2019		2018		2017
Numerator:
Net income as reported	$	590,007	$	748,151	$	535,495
Plus: Interest and costs attributable to 0.5% Exchangeable Senior Notes, net of income tax benefit (a)					1,434
Numerator for diluted earnings per share	$	590,007	$	748,151	$	536,929
Denominator:
Basic weighted-average shares	145,008		151,984		162,222
Common stock equivalents (b)	1,493		2,217		2,147
Shares attributable to 0.5% Exchangeable Senior Notes (a)					5,118
Diluted weighted-average shares	146,501		154,201		169,487
Other information:
Weighted-average number of antidilutive options and restricted stock units (c)	1,156		813		1,966
Shares issued under stock incentive and employee stock purchase plans	1,394		1,066		3,116

(a) On September 15, 2017, we redeemed these notes.

(b) Common stock equivalents represent the dilutive effect of outstanding in-the-money stock options using the treasury stock method and shares expected to be issued under our restricted stock units programs.

(c) Weighted-average number of antidilutive options and restricted stock units are based upon the average of the average quarterly closing prices of our common stock on the NYSE for the year.

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12. Fair Value Disclosures

Financial Instruments

A summary of assets and (liabilities) at October 31, 2019 and 2018, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (amounts in thousands):

		Fair value
Financial Instrument	Fair value hierarchy	October 31, 2019			October 31, 2018
Residential Mortgage Loans Held for Sale	Level 2	$	218,777		$	170,731
Forward Loan Commitments – Residential Mortgage Loans Held for Sale	Level 2	$	298		$	1,750
Interest Rate Lock Commitments (“IRLCs”)	Level 2	$	964		$	(4,366	)
Forward Loan Commitments – IRLCs	Level 2	$	(964	)	$	4,366

At October 31, 2019 and 2018, the carrying value of cash and cash equivalents and customer deposits held in escrow approximated fair value.

Mortgage Loans Held for Sale

At the end of the reporting period, we determine the fair value of our mortgage loans held for sale and the forward loan commitments we have entered into as a hedge against the interest rate risk of our mortgage loans and commitments using the market approach to determine fair value. The evaluation is based on the current market pricing of mortgage loans with similar terms and values as of the reporting date and the application of such pricing to the mortgage loan portfolio. We recognize the difference between the fair value and the unpaid principal balance of mortgage loans held for sale as a gain or loss. In addition, we recognize the fair value of our forward loan commitments as a gain or loss. These gains and losses are included in “Other income – net” in our Consolidated Statements of Operations and Comprehensive Income. Interest income on mortgage loans held for sale is calculated based upon the stated interest rate of each loan and is also included in “Other income – net.”

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

At October 31,	Aggregate unpaid principal balance		Fair value		Excess
2019	$	216,280	$	218,777	$	2,497
2018	$	170,728	$	170,731	$	3

IRLCs represent individual borrower agreements that commit us 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. We utilize 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 we agree 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. We estimate 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. The fair values of IRLCs and forward loan commitments are included in either “Receivables, prepaid expenses and other assets” or “Accrued expenses” in our Consolidated Balance Sheets, as appropriate. To manage the risk of non-performance of investors regarding the Forward Commitments, we assess the creditworthiness of the investors on a periodic basis.

Inventory

We recognize inventory impairment charges based on the difference in the carrying value of the inventory and its fair value at the time of the evaluation. The fair value of 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,” for additional information regarding our methodology on determining fair value. As further discussed in Note 1, determining the fair value of a community’s inventory involves a number of variables, many of which are interrelated. If we used a different input for any of the various unobservable inputs used in our impairment analysis, the results

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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:

Three months ended:	Selling price per unit ($ in thousands)	Sales pace per year (in units)	Discount rate
Fiscal 2019:
January 31	836 - 13,495	2 - 12	12.5% - 15.8%
April 30	372 - 1,915	2 - 19	12.0% - 26.0%
July 31	530 - 1,113	2 - 9	7.8% - 13%
October 31	478 - 857	2 - 5	13.8% - 14.5%
Fiscal 2018:
January 31	381 - 1,029	7 - 10	13.8% - 19.0%
April 30	485 - 522	10 - 16	16.9%
July 31(1)	–	–	–
October 31	470 - 1071	4 - 23	13.5% - 16.3%

(1) The impairment charges recognized were related to our decisions to sell lots in a bulk sale in certain communities rather than sell and construct homes as previously intended. The sale price per lot used in the fair value determination for these bulk sales ranged from $10,000 to $155,000.

The table below provides, for the periods indicated, the number of operating communities that we reviewed for potential impairment, the number of operating communities in which we recognized impairment charges, the amount of impairment charges recognized, and, as of the end of the period indicated, the fair value of those communities, net of impairment charges

($ amounts in thousands):

		Impaired operating communities
Three months ended:	Number of communities tested	Number of communities	Fair value of communities, net of impairment charges		Impairment charges recognized
Fiscal 2019:
January 31	49	5	$	37,282	$	5,785
April 30	64	6	$	36,159	17,495
July 31	69	3	$	5,436	1,100
October 31	71	7	$	18,910	6,695
					$	31,075
Fiscal 2018:
January 31	64	5	$	13,318	$	3,736
April 30	65	4	$	21,811	13,325
July 31	55	5	$	43,063	9,065
October 31	43	6	$	24,692	4,025
					$	30,151
Fiscal 2017:
January 31	57	2	$	8,372	$	4,000
April 30	46	6	$	25,092	2,935
July 31	53	4	$	5,965	1,360
October 31	51	1	$	6,982	1,500
					$	9,795

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Debt

The table below provides, as of the dates indicated, the book value and estimated fair value of our debt at October 31, 2019 and 2018 (amounts in thousands):

		2019				2018
	Fair value hierarchy	Book value		Estimated fair value		Book value		Estimated fair value
Loans payable (a)	Level 2	$	1,114,577	$	1,112,040	$	688,115	$	687,974
Senior notes (b)	Level 1	2,669,876		2,823,043		2,869,876		2,779,270
Mortgage company loan facility (c)	Level 2	150,000		150,000		150,000		150,000
		$	3,934,453	$	4,085,083	$	3,707,991	$	3,617,244

(a) The estimated fair value of loans payable was based upon contractual cash flows discounted at interest rates that we believed were available to us for loans with similar terms and remaining maturities as of the applicable valuation date.

(b) The estimated fair value of our senior notes is based upon their market prices as of the applicable valuation date.

(c) We believe that the carrying value of our mortgage company loan borrowings approximates their fair value.

13. Employee Retirement and Deferred Compensation Plans

Salary Deferral Savings Plans

We maintain salary deferral savings plans covering substantially all employees. We recognized an expense, net of plan forfeitures, with respect to the plans of $14.1 million, $12.6 million, and $12.3 million for the fiscal years ended October 31, 2019, 2018, and 2017, respectively.

Deferred Compensation Plan

We have an unfunded, nonqualified deferred compensation plan that permits eligible employees to defer a portion of their compensation. The deferred compensation, together with certain of our contributions, earns various rates of return depending upon when the compensation was deferred. A portion of the deferred compensation and interest earned may be forfeited by a participant if he or she elects to withdraw the compensation prior to the end of the deferral period. We accrued $31.1 million and $27.0 million at October 31, 2019 and 2018, respectively, for our obligations under the plan.

Defined Benefit Retirement Plans

We have two unfunded defined benefit retirement plans. Retirement benefits generally vest when the participant reaches normal retirement age. Such age was reduced from age 62 to age 58 in fiscal 2019. Unrecognized prior service costs are being amortized over the period from the date participants enter the plans until their interests are fully vested. We used a 2.61%, 4.06%, and 3.19% discount rate in our calculation of the present value of our projected benefit obligations at October 31, 2019, 2018, and 2017, respectively. The rates represent the approximate long-term investment rate at October 31 of the fiscal year for which the present value was calculated. Information related to the plans is based on actuarial information calculated as of October 31, 2019, 2018 and 2017.

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Information related to our retirement plans for each of the fiscal years ended October 31, 2019, 2018, and 2017, is as follows (amounts in thousands):

	2019			2018			2017
Plan costs:
Service cost	$	403		$	568		$	619
Interest cost	1,416			1,198			1,142
Amortization of prior service cost	506			936			969
Amortization of unrecognized losses	—			17			137
	$	2,325		$	2,719		$	2,867
Projected benefit obligation:
Beginning of year	$	35,515		$	38,222		$	38,980
Plan amendments adopted during year	4,956
Service cost	403			568			619
Interest cost	1,416			1,198			1,142
Benefit payments	(1,358		)	(1,358		)	(1,318		)
Change in unrecognized gain/loss	4,138			(3,115		)	(1,201		)
Projected benefit obligation, end of year	$	45,070		$	35,515		$	38,222
Unamortized prior service cost:
Beginning of year	$	870		$	1,806		$	2,775
Plan amendments adopted during year	4,956
Amortization of prior service cost	(506		)	(936		)	(969		)
Unamortized prior service cost, end of year	$	5,320		$	870		$	1,806
Accumulated unrecognized (loss) gain, October 31	$	(2,567	)	$	1,571		$	(1,560	)
Accumulated benefit obligation, October 31	$	45,070		$	35,515		$	38,222
Accrued benefit obligation, October 31	$	45,070		$	35,515		$	38,222

The accrued benefit obligation is included in accrued expenses on our Consolidated Balance Sheets.

The table below provides, based upon the estimated retirement dates of the participants in the retirement plans, the amounts of benefits we would be required to pay in each of the next five fiscal years and for the five fiscal years ended October 31, 2029 in the aggregate (in thousands):

Year ending October 31,	Amount
2020	$	1,687
2021	$	2,526
2022	$	2,785
2023	$	3,046
2024	$	3,077
November 1, 2024 – October 31, 2029	$	16,878

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14. Accumulated Other Comprehensive (Loss) Income

Accumulated other comprehensive (loss) income was primarily related to employee retirement plans. The tables below provide, for the fiscal years ended October 31, 2019, 2018 and 2017, the components of accumulated other comprehensive (loss) income (amounts in thousands):

	2019			2018			2017
Balance, beginning of period	$	694		$	(1,910	)	$	(3,336	)
Other comprehensive (loss) income before reclassifications	(9,094		)	3,115			1,201
Gross amounts reclassified from accumulated other comprehensive income	304			953			1,105
Income tax benefit (expense)	2,265			(1,142		)	(880		)
Other comprehensive (loss) income, net of tax	(6,525		)	2,926			1,426
Adoption of ASU 2018-02	—			(322		)
Balance, end of period	$	(5,831	)	$	694		$	(1,910	)

During the first quarter of fiscal 2018, we elected to reclassify the stranded tax effects resulting from the Tax Act related to employee retirement plans from accumulated other comprehensive income to retained earnings. See Note 1, “Significant Accounting Polices,” for additional information regarding the adoption of ASU 2018-02.

Reclassifications for the amortization of the employee retirement plans are included in “Other income – net” in the Consolidated Statements of Operations and Comprehensive Income.

15. Commitments and Contingencies

Legal Proceedings

We are involved in various claims and litigation arising principally in the ordinary course of business. We believe that adequate provision for resolution of all current claims and pending litigation has been made and that the disposition of these matters will not have a material adverse effect on our results of operations and liquidity or on our financial condition.

In March 2018, the Pennsylvania Attorney General informed the Company that it was conducting a review of our construction of stucco homes in Pennsylvania after January 1, 2005 and requested that we voluntarily produce documents and information. The Company has produced documents and information in response to this request and, in addition, has produced requested information and documents in response to a subpoena issued in the second quarter of fiscal 2019. Management cannot at this time predict the eventual scope or outcome of this matter.

Land Purchase Commitments

Generally, our agreements to acquire land parcels do not require us to purchase those land parcels, although we, in some cases, forfeit any deposit balance outstanding if and when we terminate an agreement. If market conditions are weak, approvals needed to develop the land are uncertain, or other factors exist that make the purchase undesirable, we may choose not to acquire the land. Whether a purchase agreement is legally terminated or not, we review the amount recorded for the land parcel subject to the purchase agreement to determine whether the amount is recoverable. While we may not have formally terminated the purchase agreements for those land parcels that we do not expect to acquire, we write off any nonrefundable deposits and costs previously capitalized to such land parcels in the periods that we determine such costs are not recoverable.

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Information regarding our land purchase commitments at October 31, 2019 and 2018, is provided in the table below (amounts in thousands):

	2019		2018
Aggregate purchase commitments:
Unrelated parties	$	2,349,900	$	2,404,660
Unconsolidated entities that the Company has investments in	10,826		128,235
Total	$	2,360,726	$	2,532,895
Deposits against aggregate purchase commitments	$	168,778	$	168,421
Credits to be received from unconsolidated entities			79,168
Additional cash required to acquire land	2,191,948		2,285,306
Total	$	2,360,726	$	2,532,895
Amount of additional cash required to acquire land included in accrued expenses	$	14,620	$	40,103

In addition, we expect to purchase approximately 2,500 additional home sites over a number of years from several joint ventures in which we have investments; the purchase prices of these home sites will be determined at a future date.

At October 31, 2019, we also had purchase commitments to acquire land for apartment developments of approximately $280.2 million, of which we had outstanding deposits in the amount of $13.7 million.

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.

Investments in Unconsolidated Entities

At October 31, 2019, we had investments in a number of unconsolidated entities, were committed to invest or advance additional funds, and had guaranteed a portion of the indebtedness and/or loan commitments of these entities. See Note 4, “Investments in Unconsolidated Entities,” for more information regarding our commitments to these entities.

Surety Bonds and Letters of Credit

At October 31, 2019, we had outstanding surety bonds amounting to $777.2 million, primarily related to our obligations to governmental entities to construct improvements in our communities. We estimate that $402.6 million of work remains on these improvements. We have an additional $179.7 million of surety bonds outstanding that guarantee other obligations. We do not believe it is probable that any outstanding bonds will be drawn upon.

At October 31, 2019, we had outstanding letters of credit of $177.9 million under our Revolving Credit Facility. These letters of credit were issued to secure our various financial obligations, including insurance policy deductibles and other claims, land deposits, and security to complete improvements in communities in which we are operating. We do not believe that it is probable that any outstanding letters of credit will be drawn upon.

Backlog

At October 31, 2019, we had agreements of sale outstanding to deliver 6,266 homes with an aggregate sales value of $5.26 billion.

Mortgage Commitments

Our mortgage subsidiary provides mortgage financing for a portion of our home closings. For those home buyers to whom our mortgage subsidiary provides mortgages, we determine whether the home buyer qualifies for the mortgage based upon information provided by the home buyer and other sources. For those home buyers who qualify, our mortgage subsidiary provides the home buyer with a mortgage commitment that specifies the terms and conditions of a proposed mortgage loan based upon then-current market conditions. Prior to the actual closing of the home and funding of the mortgage, the home buyer will lock in an interest rate based upon the terms of the commitment. At the time of rate lock, our mortgage subsidiary agrees to sell the proposed mortgage loan to one of several outside recognized mortgage financing institutions (“investors”) that is willing to honor the terms and conditions, including interest rate, committed to the home buyer. We believe that these investors have adequate financial resources to honor their commitments to our mortgage subsidiary.

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Information regarding our mortgage commitments at October 31, 2019 and 2018, is provided in the table below (amounts in thousands):

	2019		2018
Aggregate mortgage loan commitments:
IRLCs	$	565,634	$	614,255
Non-IRLCs	1,364,972		1,329,674
Total	$	1,930,606	$	1,943,929
Investor commitments to purchase:
IRLCs	$	565,634	$	614,255
Mortgage loans receivable	208,591		163,208
Total	$	774,225	$	777,463

Lease Commitments

We lease certain facilities, equipment, and properties held for rental apartment operation or development under non-cancelable operating leases which, in the case of the rental properties, are 99-year leases. Rental expenses incurred by us under these operating leases were (amounts in thousands):

Year ending October 31,	Amount
2019	$	20,180
2018	$	15,783
2017	$	14,505

At October 31, 2019, future minimum rent payments under our operating leases were (amounts in thousands):

Year ending October 31,	Amount
2020	$	15,430
2021	12,576
2022	10,082
2023	7,800
2024	6,691
Thereafter	218,221
	$	270,800

16. Other Income – Net

The table below provides the components of “Other income – net” for the years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019			2018		2017
Interest income	$	19,017		$	8,570	$	5,988
Income from ancillary businesses	53,568			25,692		18,934
Management fee income from home building unconsolidated entities, net	9,948			11,740		12,902
Retained customer deposits	—			8,937		5,801
Income from land sales	—			6,331		8,621
Other	(1,031		)	1,190		(1,184		)
Total other income – net	$	81,502		$	62,460	$	51,062

As a result of our adoption of ASC 606 as of November 1, 2018, revenues and cost of revenues from land sales are presented as separate components on our Consolidated Statement of Operations and Comprehensive Income. In addition, retained customer deposits are presented in home sales revenues on our Consolidated Statement of Operations and Comprehensive Income. Because we elected to apply the modified retrospective method of adoption, prior periods have not been restated to reflect these

F-46

changes in presentation. See Note 1, “Significant Accounting Policies – Recent Accounting Pronouncements” for additional information regarding the impact of the adoption of ASC 606.

Management fee income from home building unconsolidated entities presented above primarily represents fees earned by our City Living and Traditional Home Building operations. In addition, in fiscal 2019, 2018 and 2017, our apartment living operations earned fees from unconsolidated entities of $11.9 million, $7.5 million, and $6.2 million, respectively. Fees earned by our apartment living operations are included in income from ancillary businesses above.

Income from ancillary businesses is generated by our mortgage, title, landscaping, security monitoring, Gibraltar, apartment living, and golf course and country club operations. The table below provides revenues and expenses for these ancillary businesses for the years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019		2018		2017
Revenues	$	150,114	$	158,051	$	134,116
Expenses	$	132,823	$	132,359	$	115,182
Other income	$	36,277

In fiscal 2019, we sold seven of our golf club properties to third parties for $64.3 million and we recognized a gain of $35.1 million during the year ended October 31, 2019 as a result of these sales.

In fiscal 2018, we recognized a $10.7 million gain from a bulk sale of security monitoring accounts by our home control solutions business, which is included in income from ancillary businesses above. In addition, in fiscal 2018, we recognized a $3.5 million write-down of a commercial property operated by Toll Brothers Apartment Living, which is included in income from ancillary businesses above.

The table below provides revenues and expenses recognized from land sales for the years ended October 31, 2018, and 2017 (amounts in thousands):

	2018		2017
Revenue	$	134,327	$	284,928
Expense	127,996		281,030
Deferred gains recognized			4,723
	$	6,331	$	8,621

Land sale revenues for the year ended October 31, 2018 included $80.3 million related to sale transactions with four Rental Property Joint Ventures in which we have interests ranging from 25% to 50%. On one of these transactions, we recognized a gain of $1.0 million in fiscal 2018. In addition, due to our continued involvement in the joint venture primarily through guarantees provided on the joint venture’s debt, we deferred $3.8 million of the gain realized on this sale. We will recognize the deferred gain into income as the guarantees provided expire.

Land sale revenues for the year ended October 31, 2017 included $257.8 million related to sale transactions with two Home Building Joint Ventures and a Rental Property Joint Venture in which we have interests ranging from 20% to 25%. No gain or loss was realized on the sales related to the Home Building Joint Ventures.

The deferred gains recognized in the fiscal 2017 period relate to the sale of a property in fiscal 2015 to a Home Building Joint Venture in which we had a 25% interest. Due to our continued involvement in this unconsolidated entity through our ownership interest and guarantees provided on the entity’s debt, we deferred the $9.3 million gain realized on the sale. We recognized the gain as units were sold to the ultimate home buyers, which is included in deferred gains recognized above. In the fourth quarter of fiscal 2017, we purchased the remaining inventory from this Home Building Joint Venture. The remaining unamortized deferred gain was used to reduce the basis of the inventory acquired.

See Note 4, “Investments in Unconsolidated Entities,” for more information on these transactions.

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17. Information on Segments

The table below summarizes revenue and income (loss) before income taxes for our segments for each of the fiscal years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	Revenue							Income (loss) before income taxes
	2019			2018		2017		2019			2018			2017
Traditional Home Building:
North	$	923,299		$	975,648	$	775,540	$	55,897		$	56,530		$	50,393
Mid-Atlantic	1,112,817			1,141,130		1,030,269		64,739			90,573			105,740
South	1,244,571			1,045,395		923,953		117,533			110,304			112,809
West	1,418,041			1,451,353		1,151,697		170,389			213,269			153,188
California	2,129,461			2,208,733		1,550,494		452,350			494,247			345,138
Traditional Home Building	6,828,189			6,822,259		5,431,953		860,908			964,923			767,268
City Living	253,189			320,999		383,105		70,133			78,149			193,852
Corporate and other	(999		)					(143,871		)	(109,156		)	(146,809		)
Total home sales revenue	7,080,379			7,143,258		5,815,058		787,170			933,916			814,311
Land sales revenue	143,587			—		—
Total revenue	$	7,223,966		$	7,143,258	$	5,815,058	$	787,170		$	933,916		$	814,311

“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 our Rental Property Joint Ventures and Gibraltar Joint Ventures.

Total assets for each of our segments at October 31, 2019 and 2018, are shown in the table below (amounts in thousands):

	2019		2018
Traditional Home Building:
North	$	917,506	$	970,854
Mid-Atlantic	1,177,387		1,130,417
South	1,412,563		1,237,744
West	2,057,389		1,580,199
California	2,339,677		2,733,956
Traditional Home Building	7,904,522		7,653,170
City Living	529,507		516,238
Corporate and other	2,394,109		2,075,182
	$	10,828,138	$	10,244,590

“Corporate and other” is comprised principally of cash and cash equivalents, restricted cash, income tax receivable, investments in our Rental Property Joint Ventures, expected recoveries from insurance carriers and suppliers, our Gibraltar investments and operations, manufacturing facilities, and our mortgage and title subsidiaries.

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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 October 31, 2019
Traditional Home Building:
North	$	24,575	$	64,129	$	764,015	$	852,719
Mid-Atlantic	53,375		96,634		964,188		1,114,197
South	15,622		134,697		1,056,384		1,206,703
West	25,340		34,165		1,924,387		1,983,892
California	64,017		353,186		1,842,935		2,260,138
Traditional Home Building	182,929		682,811		6,551,909		7,417,649
City Living			185,391		270,008		455,399
	$	182,929	$	868,202	$	6,821,917	$	7,873,048
Balances at October 31, 2018
Traditional Home Building:
North	$	17,414	$	99,383	$	803,692	$	920,489
Mid-Atlantic	48,553		123,218		906,990		1,078,761
South	12,305		95,309		957,321		1,064,935
West	22,905		109,671		1,419,989		1,552,565
California	32,441		391,221		2,146,370		2,570,032
Traditional Home Building	133,618		818,802		6,234,362		7,186,782
City Living	6,367		97,814		307,256		411,437
	$	139,985	$	916,616	$	6,541,618	$	7,598,219

The amounts we have provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable for each of our segments, for the years ended October 31, 2019, 2018, and 2017, are shown in the table below (amounts in thousands):

	2019		2018		2017
Traditional Home Building:
North	$	17,488	$	19,698	$	6,528
Mid-Atlantic	8,514		9,818		6,905
South	9,457		3,802		1,184
West	1,074		907		106
California	1,027		147		43
Traditional Home Building	37,560		34,372		14,766
City Living	4,800		15		28
Corporate and other			769
	$	42,360	$	35,156	$	14,794

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

	Investments in unconsolidated entities				Equity in earnings (losses) from unconsolidated entities
	At October 31,				Year ended October 31,
	2019		2018		2019			2018			2017
Traditional Home Building:
Mid-Atlantic	$	8,525	$	7,823				$	(4,000	)	$	(2,000	)
South	91,956		84,610		19,098			$	12,263		$	9,185
West								(63		)	2,529
California	9,825		84,160		(37		)	2,404			7,509
Traditional Home Building	110,306		176,593		19,061			10,604			17,223
City Living	60,512		65,936		4,103			6,857			73,123
Corporate and other	195,434		189,284		1,704			67,779			25,720
	$	366,252	$	431,813	$	24,868		$	85,240		$	116,066

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

18. Supplemental Disclosure to Consolidated Statements of Cash Flows

The following are supplemental disclosures to the Consolidated Statements of Cash Flows for each of the fiscal years ended October 31, 2019, 2018 and 2017 (amounts in thousands):

	2019			2018			2017
Cash flow information:
Interest paid, net of amount capitalized	$	35,422		$	20,812		$	21,578
Income tax payments	$	141,681		$	215,092		$	119,852
Income tax refunds	$	4,344		$	3,101		$	2,776
Noncash activity:
Cost of inventory acquired through seller financing, municipal bonds, or accrued liabilities, net	$	213,824		$	185,633		$	61,877
Financed portion of land sale							$	625
(Increase) decrease in inventory for capitalized interest, our share of earnings, and allocation of basis difference in land purchased from unconsolidated entities	$	(5,300	)	$	(1,320	)	$	11,760
Reclassification from inventory to property, construction, and office equipment, net due to the adoption of ASC 606	$	104,807
Net decrease in inventory and retained earnings due to the adoption of ASC 606	$	8,989
Net increase in accrued expenses and decrease in retained earnings due to the adoption of ASC 606	$	6,541
Net decrease in investment in unconsolidated entities and retained earnings due to the adoption of ASC 606	$	2,457
Cost of inventory acquired through foreclosure				4,609
Reclassification of deferred income from inventory to accrued liabilities							$	3,520
Cancellation of treasury stock	$	895,517
Non-controlling interest	$	38,134		$	2,801
Reclassification of inventory to property, construction, and office equipment							$	8,990
Decrease (increase) in unrecognized gain in defined benefit plans	$	4,138		$	(3,115	)	$	(1,201	)
Defined benefit plan amendment	$	4,956
Deferred tax decrease related to stock-based compensation activity included in additional paid-in capital							$	5,232
Income tax benefit (expense) recognized in total comprehensive income	$	2,265		$	(1,141	)	$	(880	)

F-50

	2019			2018		2017
Transfer of other assets to inventory, net	$	7,100		$	16,763
Transfer of inventory to investment in unconsolidated entities						$	72,757
Transfer of investment in unconsolidated entities to inventory						$	14,328
Transfer of other assets to investment in unconsolidated entities, net	$	44,139		$	60,971	1,308
Reclassification of deferred income from accrued expenses to investment in unconsolidated entities				$	5,995
Increase in investments in unconsolidated entities for change in the fair value of debt guarantees	$	928		$	623	$	130
Miscellaneous (decreases) increases to investments in unconsolidated entities	$	(1,876	)	$	1,776	$	5,117
Business Acquisitions:
Fair value of assets purchased	$	173,516				$	88,465
Liabilities assumed	$	11,143				$	5,377
Cash paid	$	162,373				$	83,088
	At October 31,
	2019			2018		2017
Cash, cash equivalents, and restricted cash
Cash and cash equivalents	$	1,286,014		$	1,182,195	$	712,829
Restricted cash and cash held by our captive title company included in receivables, prepaid expenses, and other assets	$	33,629		$	34,215	$	48,405
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows	$	1,319,643		$	1,216,410	$	761,234

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19. Supplemental Guarantor Information

Our 100%-owned subsidiary, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), has issued the following Senior Notes (amounts in thousands):

	Original amount issued and amount outstanding at October 31, 2019
5.875% Senior Notes due February 15, 2022	$	419,876
4.375% Senior Notes due April 15, 2023	$	400,000
5.625% Senior Notes due January 15, 2024	$	250,000
4.875% Senior Notes due November 15, 2025	$	350,000
4.875% Senior Notes due March 15, 2027	$	450,000
4.350% Senior Notes due February 15, 2028	$	400,000
3.80% Senior Notes due November 1, 2029	$	400,000

The obligations of the Subsidiary Issuer to pay principal, premiums, if any, and interest are guaranteed jointly and severally on a senior basis by us and substantially all of our 100%-owned home building subsidiaries (the “Guarantor Subsidiaries”). The guarantees are full and unconditional. Our non-home building subsidiaries and several of our home building subsidiaries (together, the “Nonguarantor Subsidiaries”) do not guarantee the debt. The Subsidiary Issuer generates no operating revenues and does not have any independent operations other than the financing of our other subsidiaries by lending the proceeds from the above-described debt issuances. The indentures under which the Senior Notes were issued provide that any of our subsidiaries that provide a guarantee of the Revolving Credit Facility will guarantee the Senior Notes. The indentures further provide that any Guarantor Subsidiary may be released from its guarantee, so long as (1) no default or event of default exists or would result from release of such guarantee, (2) the Guarantor Subsidiary being released has consolidated net worth of less than 5% of our consolidated net worth as of the end of our most recent fiscal quarter, (3) the Guarantor Subsidiaries released from their guarantees in any fiscal year comprise in the aggregate less than 10% (or 15% if and to the extent necessary to permit the cure of a default) of our consolidated net worth as of the end of our most recent fiscal quarter, (4) such release would not have a material adverse effect on our and our subsidiaries home building business, and (5) the Guarantor Subsidiary is released from its guarantee under the Revolving Credit Facility. If there are no guarantors under the Revolving Credit Facility, all Guarantor Subsidiaries under the indentures will be released from their guarantees.

Separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management has determined that such disclosures would not be material to investors.

F-52

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

Consolidating Balance Sheet at October 31, 2019

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		1,082,067	203,947	—		1,286,014
Inventory					7,791,759	81,289			7,873,048
Property, construction, and office equipment, net					263,140	10,272			273,412
Receivables, prepaid expenses, and other assets					224,681	610,541	(119,781	)	715,441
Mortgage loans held for sale						218,777			218,777
Customer deposits held in escrow					74,303	100			74,403
Investments in unconsolidated entities					50,594	315,658			366,252
Investments in and advances to consolidated entities	5,172,737		2,704,551		163,371	147,413	(8,188,072	)	—
Income taxes receivable	20,791								20,791
	5,193,528		2,704,551		9,649,915	1,587,997	(8,307,853	)	10,828,138
LIABILITIES AND EQUITY
Liabilities
Loans payable					1,109,614	36,092	(34,257	)	1,111,449
Senior notes			2,659,898						2,659,898
Mortgage company loan facility						150,000			150,000
Customer deposits					383,583	2,013			385,596
Accounts payable					347,715	884			348,599
Accrued expenses	754		26,812		569,476	443,180	(89,290	)	950,932
Advances from consolidated entities					1,052,370	503,058	(1,555,428	)	—
Income taxes payable	102,971								102,971
Total liabilities	103,725		2,686,710		3,462,758	1,135,227	(1,678,975	)	5,709,445
Equity
Stockholders’ equity
Common stock	1,529				48	3,006	(3,054	)	1,529
Additional paid-in capital	726,879		49,400			177,034	(226,434	)	726,879
Retained earnings (deficit)	4,792,409		(31,559	)	6,187,109	225,853	(6,399,390	)	4,774,422
Treasury stock, at cost	(425,183	)							(425,183	)
Accumulated other comprehensive loss	(5,831	)							(5,831	)
Total stockholders’ equity	5,089,803		17,841		6,187,157	405,893	(6,628,878	)	5,071,816
Noncontrolling interest						46,877			46,877
Total equity	5,089,803		17,841		6,187,157	452,770	(6,628,878	)	5,118,693
	5,193,528		2,704,551		9,649,915	1,587,997	(8,307,853	)	10,828,138

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Consolidating Balance Sheet at October 31, 2018

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		1,011,863	170,332	—		1,182,195
Inventory					7,493,205	105,014			7,598,219
Property, construction, and office equipment, net					169,265	24,016			193,281
Receivables, prepaid expenses, and other assets					291,299	392,559	(133,080	)	550,778
Mortgage loans held for sale						170,731			170,731
Customer deposits held in escrow					116,332	1,241			117,573
Investments in unconsolidated entities					44,329	387,484			431,813
Investments in and advances to consolidated entities	4,791,629		2,916,557		91,740	126,872	(7,926,798	)	—
	4,791,629		2,916,557		9,218,033	1,378,249	(8,059,878	)	10,244,590
LIABILITIES AND EQUITY
Liabilities
Loans payable					686,801				686,801
Senior notes			2,861,375						2,861,375
Mortgage company loan facility						150,000			150,000
Customer deposits					405,318	5,546			410,864
Accounts payable					361,655	443			362,098
Accrued expenses	471		37,341		600,907	462,128	(127,266	)	973,581
Advances from consolidated entities					1,551,196	476,040	(2,027,236	)	—
Income taxes payable	30,959								30,959
Total liabilities	31,430		2,898,716		3,605,877	1,094,157	(2,154,502	)	5,475,678
Equity
Stockholders’ equity
Common stock	1,779				48	3,006	(3,054	)	1,779
Additional paid-in capital	727,053		49,400			93,734	(143,134	)	727,053
Retained earnings (deficit)	5,161,551		(31,559	)	5,612,108	178,639	(5,759,188	)	5,161,551
Treasury stock, at cost	(1,130,878	)							(1,130,878	)
Accumulated other comprehensive loss	694								694
Total stockholders’ equity	4,760,199		17,841		5,612,156	275,379	(5,905,376	)	4,760,199
Noncontrolling interest						8,713			8,713
Total equity	4,760,199		17,841		5,612,156	284,092	(5,905,376	)	4,768,912
	4,791,629		2,916,557		9,218,033	1,378,249	(8,059,878	)	10,244,590

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Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2019

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues:
Home sales					6,980,549		99,830				7,080,379
Land sales and other					112,972		260,843		(230,228	)	143,587
	—		—		7,093,521		360,673		(230,228	)	7,223,966
Cost of revenues:
Home sales					5,595,685		79,400		3,829		5,678,914
Land sales and other					59,338		180,162		(109,796	)	129,704
	—		—		5,655,023		259,562		(105,967	)	5,808,618
Selling, general and administrative	542		2,715		775,030		75,905		(119,644	)	734,548
Income (loss) from operations	(542	)	(2,715	)	663,468		25,206		(4,617	)	680,800
Other:
Income from unconsolidated entities					12,930		11,938				24,868
Other income - net					48,052		26,352		7,098		81,502
Intercompany interest income			135,087		2,616		5,781		(143,484	)	—
Interest expense			(132,372	)	(5,781	)	(2,850	)	141,003		—
Income from consolidated subsidiaries	787,712				66,427				(854,139	)	—
Income (loss) before income taxes	787,170		—		787,712		66,427		(854,139	)	787,170
Income tax provision (benefit)	197,163				197,298		16,637		(213,935	)	197,163
Net income (loss)	590,007		—		590,414		49,790		(640,204	)	590,007
Other comprehensive income	(6,525	)									(6,525	)
Total comprehensive income (loss)	583,482		—		590,414		49,790		(640,204	)	583,482

Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2018

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					6,899,891		453,073		(209,706	)	7,143,258
Cost of revenues					5,427,753		303,962		(58,708	)	5,673,007
Selling, general and administrative	77		3,162		709,265		83,003		(111,472	)	684,035
	77		3,162		6,137,018		386,965		(170,180	)	6,357,042
Income (loss) from operations	(77	)	(3,162	)	762,873		66,108		(39,526	)	786,216
Other:
Income from unconsolidated entities					44,646		40,594				85,240
Other income - net					30,561		(2,950	)	34,849		62,460
Intercompany interest income			142,084		1,649		4,422		(148,155	)	—
Interest expense			(138,922	)	(4,422	)	(2,111	)	145,455		—
Income from consolidated subsidiaries	933,993				106,063				(1,040,056	)	—
Income (loss) before income taxes	933,916		—		941,370		106,063		(1,047,433	)	933,916
Income tax provision (benefit)	185,765				187,248		21,097		(208,345	)	185,765
Net income (loss)	748,151		—		754,122		84,966		(839,088	)	748,151
Other comprehensive income	2,926										2,926
Total comprehensive income (loss)	751,077		—		754,122		84,966		(839,088	)	751,077

F-55

Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2017

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					5,668,610		336,671		(190,223	)	5,815,058
Cost of revenues					4,414,461		223,243		(75,401	)	4,562,303
Selling, general and administrative	58		4,033		633,000		77,115		(108,634	)	605,572
	58		4,033		5,047,461		300,358		(184,035	)	5,167,875
Income (loss) from operations	(58	)	(4,033	)	621,149		36,313		(6,188	)	647,183
Other:
Income from unconsolidated entities					12,271		103,795				116,066
Other income - net	10,574				26,653		10,674		3,161		51,062
Intercompany interest income			156,366		48		4,365		(160,779	)	—
Interest expense			(162,882	)	(4,365	)	(1,819	)	169,066		—
Income from consolidated subsidiaries	803,795				142,779				(946,574	)	—
Income (loss) before income taxes	814,311		(10,549	)	798,535		153,328		(941,314	)	814,311
Income tax provision (benefit)	278,816		(3,612	)	273,418		52,500		(322,306	)	278,816
Net income (loss)	535,495		(6,937	)	525,117		100,828		(619,008	)	535,495
Other comprehensive income	1,426										1,426
Total comprehensive income (loss)	536,921		(6,937	)	525,117		100,828		(619,008	)	536,921

F-56

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2019

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	76,828		(8,413	)	559,660		(180,837	)	(9,577	)	437,661
Cash flow provided by (used in) investing activities:
Purchase of property and equipment — net					(86,936	)	(35	)			(86,971	)
Investment in unconsolidated entities					(11,202	)	(45,358	)			(56,560	)
Return of investments in unconsolidated entities					3,304		144,623				147,927
Investment in distressed loans and foreclosed real estate							(731	)			(731	)
Return of investments in distressed loans and foreclosed real estate							3,147				3,147
Proceeds from sales of golf club properties and an office building					58,154		21,493				79,647
Acquisitions of businesses					(162,373	)					(162,373	)
Investment paid intercompany					(71,631	)			71,631		—
Intercompany advances	202,967		212,005						(414,972	)	—
Net cash provided by (used in) investing activities	202,967		212,005		(270,684	)	123,139		(343,341	)	(75,914	)
Cash flow (used in) provided by financing activities:
Proceeds from issuance of senior notes			400,000								400,000
Proceeds from loans payable					300,000		2,399,028				2,699,028
Debt issuance costs			(3,592	)	(2,588	)					(6,180	)
Principal payments of loans payable					(72,588	)	(2,399,028	)			(2,471,616	)
Redemption of senior notes			(600,000	)							(600,000	)
Proceeds from stock-based benefit plans	17,369										17,369
Purchase of treasury stock	(233,523	)									(233,523	)
Dividends paid	(63,641	)									(63,641	)
Receipts related to noncontrolling interest							49				49
Investment received intercompany							71,628		(71,628	)	—
Intercompany advances					(443,577	)	19,031		424,546		—
Net cash (used in) provided by financing activities	(279,795	)	(203,592	)	(218,753	)	90,708		352,918		(258,514	)
Net increase in cash, cash equivalents, and restricted cash	—		—		70,223		33,010		—		103,233
Cash, cash equivalents, and restricted cash, beginning of period	—		—		1,011,867		204,543		—		1,216,410
Cash, cash equivalents, and restricted cash, end of period	—		—		1,082,090		237,553		—		1,319,643

F-57

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2018

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	(4,270	)	5,439		521,640		56,301		9,101		588,211
Cash flow provided by (used in) investing activities:
Purchase of property and equipment — net					(28,064	)	(168	)			(28,232	)
Investment in unconsolidated entities					(1,676	)	(25,815	)			(27,491	)
Return of investments in unconsolidated entities					29,242		103,948				133,190
Investment in distressed loans and foreclosed real estate							(966	)			(966	)
Return of investments in distressed loans and foreclosed real estate							4,765				4,765
Intercompany advances	555,741		(401,908	)					(153,833	)	—
Net cash provided by (used in) investing activities	555,741		(401,908	)	(498	)	81,764		(153,833	)	81,266
Cash flow (used in) provided by financing activities:
Proceeds from issuance of senior notes			400,000								400,000
Proceeds from loans payable					590,000		2,040,835				2,630,835
Debt issuance costs			(3,531	)							(3,531	)
Principal payments of loans payable					(679,184	)	(2,010,980	)			(2,690,164	)
Proceeds from stock-based benefit plans	13,392										13,392
Purchase of treasury stock	(503,159	)									(503,159	)
Payments related to noncontrolling interest							30				30
Dividends paid intercompany							(6,000	)	6,000		—
Dividends paid	(61,704	)									(61,704	)
Intercompany advances					45,205		(183,937	)	138,732		—
Net cash (used in) provided by financing activities	(551,471	)	396,469		(43,979	)	(160,052	)	144,732		(214,301	)
Net increase (decrease) in cash, cash equivalents, and restricted cash	—		—		477,163		(21,987	)	—		455,176
Cash, cash equivalents, and restricted cash, beginning of period	—		—		534,704		226,530		—		761,234
Cash, cash equivalents, and restricted cash, end of period	—		—		1,011,867		204,543		—		1,216,410

F-58

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2017

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	200,721		9,955		294,302		366,144		(9,424	)	861,698
Cash flow (used in) provided by investing activities:
Purchase of property and equipment — net					(20,439	)	(8,433	)			(28,872	)
Sale and redemption of marketable securities and restricted investments - net	10,631						7,418				18,049
Investment in unconsolidated entities					(3,744	)	(118,590	)			(122,334	)
Return of investments in unconsolidated entities					58,610		136,895				195,505
Investment in distressed loans and foreclosed real estate							(710	)			(710	)
Return of investments in distressed loans and foreclosed real estate							13,765				13,765
Acquisition of a business					(83,088	)					(83,088	)
Investment paid intercompany					(45,000	)			45,000		—
Intercompany advances	51,071		226,511						(277,582	)	—
Net cash (used in) provided by investing activities	61,702		226,511		(93,661	)	30,345		(232,582	)	(7,685	)
Cash flow (used in) provided by financing activities:
Net proceeds from issuance of senior notes			455,483								455,483
Proceeds from loans payable					250,068		1,370,975				1,621,043
Debt issuance costs			(4,449	)							(4,449	)
Principal payments of loans payable					(538,527	)	(1,460,830	)			(1,999,357	)
Redemption of senior notes			(687,500	)							(687,500	)
Proceeds from stock-based benefit plans	66,000										66,000
Purchase of treasury stock	(290,881	)									(290,881	)
Dividends paid	(38,587	)									(38,587	)
Investment received intercompany							45,000		(45,000	)	—
Intercompany advances					39,082		(326,088	)	287,006		—
Net cash (used in) provided by financing activities	(263,468	)	(236,466	)	(249,377	)	(370,943	)	242,006		(878,248	)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(1,045	)	—		(48,736	)	25,546		—		(24,235	)
Cash, cash equivalents, and restricted cash, beginning of period	1,045		—		583,440		200,984		—		785,469
Cash, cash equivalents, and restricted cash, end of period	—		—		534,704		226,530		—		761,234

`

F-59

20. Summary Consolidated Quarterly Financial Data (Unaudited)

The table below provides summary income statement data for each quarter of fiscal 2019 and 2018 (amounts in thousands, except per share data):

	Three Months Ended
	October 31		July 31		April 30		January 31
Fiscal 2019:
Revenue:
Home sales	$	2,292,044	$	1,756,970	$	1,712,057	$	1,319,308
Land sales	$	86,956	$	8,721	$	4,037	$	43,873
Gross profit:
Home sales	$	431,477	$	355,215	$	337,710	$	277,063
Land sales	$	658	$	2,489	$	1,116	$	9,620
Income before income taxes	$	272,649	$	186,916	$	176,159	$	151,446
Net income	$	202,315	$	146,318	$	129,324	$	112,050
Earnings per share (a)
Basic	$	1.43	$	1.01	$	0.88	$	0.76
Diluted	$	1.41	$	1.00	$	0.87	$	0.76
Weighted-average number of shares
Basic	141,909		144,750		146,622		146,751
Diluted	143,567		146,275		148,129		148,032
Fiscal 2018:
Revenue	$	2,455,238	$	1,913,353	$	1,599,199	$	1,175,468
Gross profit	$	524,487	$	403,734	$	301,042	$	240,988
Income before income taxes	$	396,473	$	253,097	$	152,748	$	131,598
Net income	$	310,976	$	193,258	$	111,810	$	132,107
Earnings per share (a)
Basic	$	2.10	$	1.28	$	0.73	$	0.85
Diluted	$	2.08	$	1.26	$	0.72	$	0.83
Weighted-average number of shares
Basic	148,066		151,257		152,731		155,882
Diluted	149,603		153,173		155,129		158,897

(a) Due to rounding, the sum of the quarterly earnings per share amounts may not equal the reported earnings per share for the year.

F-60

EX-4.41

Exhibit 4.41

THIS TWENTY-SECOND SUPPLEMENTAL INDENTURE, dated as of October 30, 2019, by and among TOLL BROTHERS FINANCE CORP. (the “Issuer”), the parties listed on Schedule A hereto (each a “Surviving Guarantor” and collectively, the “Surviving Guarantors”) and THE BANK OF NEW YORK MELLON, as trustee (the “Trustee”).

WHEREAS, in connection with the mergers of certain Guarantors (each a "Merged Guarantor" as listed on Schedule B hereto) with and into the Surviving Guarantor appearing next to such Merged Guarantor on Schedule B hereto, each of the Surviving Guarantors is executing and delivering this Twenty-Second Supplemental Indenture to affirm its obligations under the Indenture (as defined on Exhibit A attached hereto) pursuant to Sections 5.01 and 10.01(1) thereof; and

WHEREAS, the consent of Holders to the execution and delivery of this Twenty-Second Supplemental Indenture is not required, and all other actions required to be taken under the Indenture with respect to this Twenty-Second Supplemental Indenture have been taken.

NOW, THEREFORE IT IS AGREED:

Section 1.Definitions. Capitalized terms used in this Twenty-Second Supplemental Indenture and not otherwise defined herein (including Exhibit A attached hereto) shall have the meanings ascribed to them in the Indenture.

Section 2.Joinder. Each Surviving Guarantor agrees that by its entering into this Twenty-Second Supplemental Indenture, such Surviving Guarantor hereby ratifies, approves and confirms in all respects its obligations under the Original Indenture both in its own capacity and as successor to each Merged Guarantor.

Section 3.Ratification of Indenture. This Twenty-Second Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Indenture, and as supplemented and modified hereby, the Indenture is in all respects ratified and confirmed, and the Indenture and this Twenty-Second Supplemental Indenture shall be read, taken and construed as one and the same instrument.

Section 4.Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof.

Section 5.Successors and Assigns. All covenants and agreements in this Twenty-Second Supplemental Indenture by each Surviving Guarantor shall bind each such Surviving Guarantor’s successors and assigns, whether so expressed or not.

Section 6.Separability Clause. In case any one or more of the provisions contained in this Twenty-Second Supplemental Indenture shall for any reason be held to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

Section 7.Governing Law. This Twenty-Second Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York. This Twenty-Second Supplemental Indenture is subject to the provisions of the TIA that are required to be part of this Twenty-Second Supplemental Indenture and shall, to the extent applicable, be governed by such provisions.

Section 8.Counterparts. This Twenty-Second Supplemental Indenture may be executed in any number of counterparts, and each of such counterparts shall for all purposes be deemed to be an original, but all such counterparts shall together constitute one and the same instrument.

Section 9.Role of Trustee. The recitals contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Twenty-Second Supplemental Indenture.

[SIGNATURES ON THE FOLLOWING PAGE]

- 2 -    

IN WITNESS WHEREOF, the parties hereto have caused this Twenty-Second Supplemental Indenture to be duly executed as of the date first above written.

TOLL BROTHERS FINANCE CORP.,
as Issuer
By:	/s/ Michael J. Grubb
	Name: Michael J. Grubb
	Title: Senior Vice President
THE SURVIVING GUARANTORS NAMED ON
SCHEDULE A HERETO,
as Guarantors
By:	/s/ Michael J. Grubb
	Name: Michael J. Grubb
	Title: Designated Officer

THE BANK OF NEW YORK MELLON,
as Trustee
By:	/s/ Laurence J. O'Brien
	Name: Laurence J. O'Brien
	Title: Vice President

- 3 -    

SCHEDULE A

SURVIVING GUARANTORS

Toll Mid-Atlantic LP Company, Inc. (a Delaware corporation)

Toll Northeast LP Company, Inc. (a Delaware corporation)

Toll Southeast LP Company, Inc. (a Delaware corporation)

- 4 -    

SCHEDULE B

LIST OF MERGERS

MERGING GUARANTORSSURVIVING GUARANTORS

Delaware Corps to be mergedDelaware Corp to be merged into

Toll Centennial Corp.                Toll Mid-Atlantic LP Company, Inc.

Toll Land Corp. No. 50                Toll Mid-Atlantic LP Company, Inc.

Toll VA Member Two, Inc.                Toll Mid-Atlantic LP Company, Inc.

Delaware LLC to be mergedDelaware LLC to be merged into

Toll VA LLC                    Toll Mid-Atlantic LP Company, Inc.

Florida LP to be mergedFlorida LP to be merged into

Toll Ft. Myers Limited Partnership            Toll Southeast LP Company, Inc.

Michigan LP to be mergedMichigan LP to be merged into

Silverman-Toll Limited Partnership            Toll Mid-Atlantic LP Company, Inc.

New York Corp to be mergedNew York Corp to be merged into

110-112 Third Ave. Realty Corp.            Toll Northeast LP Company, Inc.

Virginia LPs to be mergedVirginia LPs to be merged into

South Riding Partners Amberlea LP            Toll Mid-Atlantic LP Company, Inc.    

South Riding Partners, L.P.            Toll Mid-Atlantic LP Company, Inc.    

Virginia LLCs to be mergedVirginia LLCs to be merged into

South Riding Realty LLC                Toll Mid-Atlantic LP Company, Inc.

Toll Stratford LLC                Toll Mid-Atlantic LP Company, Inc.

- 5 -    

EXHIBIT A

For purposes of this Twenty-Second Supplemental Indenture, the term “Indenture” shall mean that certain Indenture, dated as of February 7, 2012 (the “Original Indenture”) by and among Toll Brothers Finance Corp., Toll Brothers, Inc. as Guarantor, the other Guarantors identified therein and the Trustee, as supplemented by: (i) the Authorizing Resolutions, related to the issuance of $300,000,000 aggregate principal amount of 5.875% Senior Notes due 2022 (the “5.875% Senior Notes”) by Toll Brothers Finance Corp. (the “Issuer”) and the issuance of related guarantees by Toll Brothers, Inc. (the “Company”) and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of January 31, 2012; (ii)  the issuance of $119,876,000 aggregate principal amount of 5.875% Senior Notes issued by the Issuer and the issuance of related guarantees by the Company and the other Guarantors in an exchange for a portion of the Issuer’s outstanding 6.875% Senior Notes due 2012 and 5.95% Senior Notes due 2013; (iii) the First Supplemental Indenture dated as of April 27, 2012 (the “First Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such First Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (iv) the Authorizing Resolutions relating to the $300,000,000 principal amount of 4.375% Senior Notes due 2023 of the Issuer and the issuance of related guarantees by the Company and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of April 3, 2013; (v) the Second Supplemental Indenture dated as of April 29, 2013 (the “Second Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Second Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (vi) the Authorizing Resolutions relating to the $100,000,000 principal amount of 4.375% Senior Notes due 2023 of the Issuer and the issuance of related guarantees by the Company and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of May 8, 2013; (vii) the Authorizing Resolutions relating to the $350,000,000 principal amount of 4.000% Senior Notes due 2018 of the Issuer and the issuance of related guarantees by the Company and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of November 21, 2013; (viii) the Authorizing Resolutions, dated as of November 21, 2013, relating to the $250,000,000 principal amount of 5.625% Senior Notes due 2024 of the Issuer and the issuance of related guarantees by the Company and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of November 21, 2013; (ix) the Third Supplemental Indenture dated as of April 30, 2014 (the “Third Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Third Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (x) the Fourth Supplemental Indenture dated as of July 31, 2014 (the “Fourth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Fourth Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (xi) the Fifth Supplemental Indenture dated as of October 31, 2014 (the “Fifth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Fifth Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (xii) the Sixth Supplemental Indenture dated as of January 30, 2015 (the “Sixth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Sixth Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (xiii) the Seventh Supplemental Indenture dated as of April 30, 2015 (the “Seventh Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Seventh Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (xiv) the Eighth Supplemental Indenture dated as of October 30, 2015 (the “Eighth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Eighth Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (xv) the Authorizing Resolutions, dated as of October 30, 2015, relating to the $350,000,000 principal amount of 4.875% Senior Notes due 2025 of the Issuer and the issuance of related guarantees by the Company and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of October 30, 2015; and (xvi) the Ninth Supplemental Indenture dated as of January 29, 2016 (the “Ninth Supplemental Indenture”), by and between the party listed on Schedule A thereto (who, pursuant to such Ninth Supplemental Indenture, affirmed its obligation as a Guarantor) and the Trustee; (xvii) the Tenth Supplemental Indenture dated as of April 29, 2016 (the

- 6 -    

“Tenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Tenth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xviii) the Eleventh Supplemental Indenture dated as of October 31, 2016 (the “Eleventh Supplemental Indenture”), by and among the Issuer, the parties listed on Schedule A thereto (who, pursuant to such Eleventh Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xix) the Twelfth Supplemental Indenture dated as of October 31, 2016 (the “Twelfth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Twelfth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xx) the Thirteenth Supplemental Indenture dated as of January 31, 2017 (the “Thirteenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Thirteenth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xxi) the Authorizing Resolutions relating to the $300,000,000 aggregate principal amount of 4.875% Senior Notes due 2027 of the Issuer and the issuance of related guarantees by the Company and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities Listed on Schedule I thereto dated as of March 10, 2017; (xxii) the Fourteenth Supplemental Indenture dated as of April 28, 2017 (the “Fourteenth Supplemental Indenture”), by and among the Issuer, the party listed on Schedule A thereto (who, pursuant to such Fourteenth Supplemental Indenture, affirmed its obligations as a Guarantor) and the Trustee; (xxiii) the Authorizing Resolutions relating to the add-on offering of $150,000,000 aggregate principal amount of 4.875% Senior Notes due 2027 of the Issuer and the issuance of the related guarantees by the Company and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities Listed on Schedule I thereto dated as of June 12, 2017; (xxiv) the Fifteenth Supplemental Indenture dated as of July 31, 2017 (the “Fifteenth Supplemental Indenture”), by and among the Issuer, the parties listed on Schedule A thereto (who, pursuant to such Fifteenth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xxv) the Sixteenth Supplemental Indenture dated as of October 31, 2017 (the “Sixteenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Sixteenth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xxvi) the Seventeenth Supplemental Indenture dated as of October 31, 2017 (the “Seventeenth Supplemental Indenture”), by and among the Issuer, the parties listed on Schedule A thereto (who, pursuant to such Seventeenth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xxvii) the Authorizing Resolutions related to the issuance of $400,000,000 aggregate principal amount of 4.350% Senior Notes due 2028 by the Issuer and the issuance of related guarantees by the Company and the other Guarantors attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of January 22, 2018; (xxviii) the Eighteenth Supplemental Indenture dated as of April 13, 2018 (the “Eighteenth Supplemental Indenture”), by and among the Issuer, the parties listed on Schedule A thereto (who, pursuant to such Eighteenth Supplemental Indenture,affirmed their obligations as Guarantors) and the Trustee; (xxix) the Nineteenth Supplemental Indenture dated as of April 30, 2018 (the “Nineteenth SupplementalIndenture”), by and among the Issuer, the party listed on Schedule A thereto (who, pursuant to such Nineteenth Supplemental Indenture, affirmed its obligations as Guarantor) and the Trustee; (xxx) the Twentieth Supplemental Indentured dated as of October 31, 2018 (the “Twentieth SupplementalIndenture”), by and among the Issuer, the parties listed on Schedule A thereto (who, pursuant to such Twentieth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xxxi) the Twenty-First Supplemental Indenture dated as of January 31, 2019 (the “Twenty-First SupplementalIndenture”), by and among the Issuer, the parties listed on Schedule A thereto (who, pursuant to such Twenty-First Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xxxii) the Authorizing Resolutions related to the issuance of $400,000,000 aggregate principal amount of 3.800% Senior Notes due 2029 by the Issuer and the issuance of related guarantees by the Company and the other Guarantors attached as Exhibit A to the Joint Action of Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of September 12, 2019; and as may be further supplemented (including by this Twenty-Second Supplemental Indenture) and/or amended.

- 7 -    

EX-4.42

Exhibit 4.42

THIS TWENTY-THIRD SUPPLEMENTAL INDENTURE, dated as of October 30, 2019, by and among TOLL BROTHERS FINANCE CORP. (the “Issuer”), the parties listed on Schedule A hereto (each an “Additional Guarantor” and collectively, the “Additional Guarantors”) and THE BANK OF NEW YORK MELLON, as trustee (the “Trustee”). Capitalized terms used in this Twenty-Third Supplemental Indenture and not otherwise defined herein (including terms used on Exhibit A attached hereto) shall have the meanings ascribed to them in the Indenture, dated as of February 7, 2012, by and among the Issuer, Toll Brothers, Inc., as Guarantor, the other Guarantors identified therein and the Trustee (as more fully described on Exhibit A attached hereto).

RECITALS

WHEREAS, Section 4.04 of the Indenture provides that if in accordance with the provisions of the Revolving Credit Facility the Company adds, or causes to be added, any Subsidiary that was not a Guarantor at the time of execution of the Original Indenture as a guarantor under the Revolving Credit Facility, such Subsidiary shall contemporaneously become a Guarantor under the Indenture;

WHEREAS, desiring to become a Guarantor under the Indenture, each of the Additional Guarantors is executing and delivering this Twenty-Third Supplemental Indenture; and

WHEREAS, the consent of Holders to the execution and delivery of this Twenty-Third Supplemental Indenture is not required, and all other actions required to be taken under the Indenture with respect to this Twenty-Third Supplemental Indenture have been taken.

NOW, THEREFORE IT IS AGREED:

Section 1.Joinder. Each Additional Guarantor agrees that by its entering into this Twenty-Third Supplemental Indenture, it hereby unconditionally guarantees all of the Issuer’s obligations under (i) the 5.875% Senior Notes due February 15, 2022, (ii) the 4.375% Senior Notes due April 15, 2023, (iii) the 5.625% Senior Notes due January 15, 2024, (iv) the 4.875% Senior Notes due November 15, 2025, (v) the 4.875% Senior Notes due March 15, 2027, (vi) the 4.350% Senior Notes due February 15, 2028; (vii) the 3.800% Senior Notes due November 1, 2029; (viii) any other Securities of any Series that has the benefit of Guarantees of other Subsidiaries of the Company, and (ix) the Indenture (as it relates to all such Series) on the terms set forth in the Indenture, as if each Additional Guarantor was a party to the Original Indenture.

Section 2.Ratification of Indenture. This Twenty-Third Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Indenture, and as supplemented and modified hereby, the Indenture is in all respects ratified and confirmed, and the Indenture and this Twenty-Third Supplemental Indenture shall be read, taken and construed as one and the same instrument.

Section 3.Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof.

Section 4.Successors and Assigns. All covenants and agreements in this Twenty-Third Supplemental Indenture by the Additional Guarantors shall bind each Additional Guarantor’s successors and assigns, whether so expressed or not.

Section 5.Separability Clause. In case any one or more of the provisions contained in this Twenty-Third Supplemental Indenture shall for any reason be held to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

Section 6.Governing Law. This Twenty-Third Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York. This Twenty-Third Supplemental Indenture is subject to the provisions of the TIA that are required to be part of this Twenty-Third Supplemental Indenture and shall, to the extent applicable, be governed by such provisions.

Section 7.Counterparts. This Twenty-Third Supplemental Indenture may be executed in any number of counterparts, and each of such counterparts shall for all purposes be deemed to be an original, but all such counterparts shall together constitute one and the same instrument.

Section 8.Role of Trustee. The recitals contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Twenty-Third Supplemental Indenture.

IN WITNESS WHEREOF, the parties hereto have caused this Twenty-Third Supplemental Indenture to be duly executed as of the date first above written.

TOLL BROTHERS FINANCE CORP., as Issuer
By:	/s/ Michael J. Grubb
	Name: Michael J. Grubb
	Title: Senior Vice President
THE ADDITIONAL GUARANTORS NAMED ON
SCHEDULE A HERETO, as Guarantors
By:	/s/ Michael J. Grubb
	Name: Michael J. Grubb
	Title: Designated Officer

THE BANK OF NEW YORK MELLON,
as Trustee
By:	/s/ Laurence J. O'Brien
	Name: Laurence J. O'Brien
	Title: Vice President

[SIGNATURE PAGE TO TWENTY-THIRD SUPPLEMENTAL INDENTURE

TO INDENTURE DATED AS OF FEBRUARY 7, 2012]

SCHEDULE A

Additional Guarantors as of October 30, 2019

2686-2690 Broadway LLC

2686-2690 Broadway Member LLC

EXHIBIT A

For purposes of this Twenty-Third Supplemental Indenture, the term “Indenture” shall mean that certain Indenture, dated as of February 7, 2012 (the “Original Indenture”) by and among Toll Brothers Finance Corp., Toll Brothers, Inc. as Guarantor, the other Guarantors identified therein and the Trustee, as supplemented by: (i) the Authorizing Resolutions, related to the issuance of $300,000,000 aggregate principal amount of 5.875% Senior Notes due 2022 (the “5.875% Senior Notes”) by Toll Brothers Finance Corp. (the “Issuer”) and the issuance of related guarantees by Toll Brothers, Inc. (the “Company”) and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of January 31, 2012; (ii)  the issuance of $119,876,000 aggregate principal amount of 5.875% Senior Notes issued by the Issuer and the issuance of related guarantees by the Company and the other Guarantors in an exchange for a portion of the Issuer’s outstanding 6.875% Senior Notes due 2012 and 5.95% Senior Notes due 2013; (iii) the First Supplemental Indenture dated as of April 27, 2012 (the “First Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such First Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (iv) the Authorizing Resolutions relating to the $300,000,000 principal amount of 4.375% Senior Notes due 2023 of the Issuer and the issuance of related guarantees by the Company and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of April 3, 2013; (v) the Second Supplemental Indenture dated as of April 29, 2013 (the “Second Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Second Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (vi) the Authorizing Resolutions relating to the $100,000,000 principal amount of 4.375% Senior Notes due 2023 of the Issuer and the issuance of related guarantees by the Company and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of May 8, 2013; (vii) the Authorizing Resolutions relating to the $350,000,000 principal amount of 4.000% Senior Notes due 2018 of the Issuer and the issuance of related guarantees by the Company and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of November 21, 2013; (viii) the Authorizing Resolutions, dated as of November 21, 2013, relating to the $250,000,000 principal amount of 5.625% Senior Notes due 2024 of the Issuer and the issuance of related guarantees by the Company and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of November 21, 2013; (ix) the Third Supplemental Indenture dated as of April 30, 2014 (the “Third Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Third Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (x) the Fourth Supplemental Indenture dated as of July 31, 2014 (the “Fourth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Fourth Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (xi) the Fifth Supplemental Indenture dated as of October 31, 2014 (the “Fifth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Fifth Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (xii) the Sixth Supplemental Indenture dated as of January 30, 2015 (the “Sixth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Sixth Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (xiii) the Seventh Supplemental Indenture dated as of April 30, 2015 (the “Seventh Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Seventh Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (xiv) the Eighth Supplemental Indenture dated as of October 30, 2015 (the “Eighth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Eighth Supplemental Indenture, affirmed their obligation as Guarantors) and the Trustee; (xv) the Authorizing Resolutions, dated as of October 30, 2015, relating to the $350,000,000 principal amount of 4.875% Senior Notes due 2025 of the Issuer and the issuance of related guarantees by the Company and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of October 30, 2015; and (xvi) the Ninth Supplemental Indenture dated as of January 29, 2016 (the

“Ninth Supplemental Indenture”), by and between the party listed on Schedule A thereto (who, pursuant to such Ninth Supplemental Indenture, affirmed its obligation as a Guarantor) and the Trustee; (xvii) the Tenth Supplemental Indenture dated as of April 29, 2016 (the “Tenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Tenth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xviii) the Eleventh Supplemental Indenture dated as of October 31, 2016 (the “Eleventh Supplemental Indenture”), by and among the Issuer, the parties listed on Schedule A thereto (who, pursuant to such Eleventh Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xix) the Twelfth Supplemental Indenture dated as of October 31, 2016 (the “Twelfth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Twelfth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xx) the Thirteenth Supplemental Indenture dated as of January 31, 2017 (the “Thirteenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Thirteenth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xxi) the Authorizing Resolutions relating to the $300,000,000 aggregate principal amount of 4.875% Senior Notes due 2027 of the Issuer and the issuance of related guarantees by the Company and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities Listed on Schedule I thereto dated as of March 10, 2017; (xxii) the Fourteenth Supplemental Indenture dated as of April 28, 2017 (the “Fourteenth Supplemental Indenture”), by and among the Issuer, the party listed on Schedule A thereto (who, pursuant to such Fourteenth Supplemental Indenture, affirmed its obligations as a Guarantor) and the Trustee; (xxiii) the Authorizing Resolutions relating to the add-on offering of $150,000,000 aggregate principal amount of 4.875% Senior Notes due 2027 of the Issuer and the issuance of the related guarantees by the Company and the other Guarantors, attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities Listed on Schedule I thereto dated as of June 12, 2017; (xxiv) the Fifteenth Supplemental Indenture, dated as of July 31, 2017 (the “Fifteenth Supplemental Indenture”), by and among the Issuer, the parties listed on Schedule A thereto (who, pursuant to such Fifteenth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xxv) the Sixteenth Supplemental Indenture, dated as of October 31, 2017 (the “Sixteenth Supplemental Indenture”), by and among the Issuer, the parties listed on Schedule A thereto (who, pursuant to such Sixteenth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xxvi) the Seventeenth Supplemental Indenture dated as of October 31, 2017 (the “Seventeenth Supplemental Indenture”), by and among the Issuer, the parties listed on Schedule A thereto (who, pursuant to such Seventeenth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xxvii) the Authorizing Resolutions related to the issuance of $400,000,000 aggregate principal amount of 4.350% Senior Notes due 2028 by the Issuer and the issuance of related guarantees by the Company and the other Guarantors attached as Exhibit A to the Joint Action of the Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of January 22, 2018; (xxviii) the Eighteenth Supplemental Indenture dated as of April 13, 2018 (the “Eighteenth Supplemental Indenture”), by and among the Issuer, the parties listed on Schedule A thereto (who, pursuant to such Eighteenth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xxix) the Nineteenth Supplemental Indenture dated as of April 30, 2018 (the “Nineteenth Supplemental Indenture”), by and among the Issuer, the party listed on Schedule A thereto (who, pursuant to such Nineteenth Supplemental Indenture, affirmed its obligations as Guarantor) and the Trustee; (xxx) the Twentieth Supplemental Indenture dated as of October 31, 2018 (the “Twentieth Supplemental Indenture”), by and among the Issuer, the parties listed on Schedule A thereto (who, pursuant to such Twentieth Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xxxi) the Twenty-First Supplemental Indenture dated as of January 31, 2019 (the “Twenty-First Supplemental Indenture”), by and among the Issuer, the parties listed on Schedule A thereto (who, pursuant to such Twenty-First Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; (xxxii) the Authorizing Resolutions related to the issuance of $400,000,000 aggregate principal amount of 3.800% Senior Notes due 2029 by the Issuer and the issuance of related guarantees by the Company and the other Guarantors attached as Exhibit A to the Joint Action of Persons Authorized to Act on Behalf of Each of Toll Brothers Finance Corp., Toll Brothers, Inc. and Each of the Entities listed on Schedule I thereto dated as of September 12, 2019; (xxxiv) the Twenty-Second Supplemental Indenture dated as of October 30, 2019 (the “Twenty-Second Supplemental Indenture”), by and among the Issuer, the parties listed on Schedule A thereto (who, pursuant to such Twenty-Second Supplemental Indenture, affirmed their obligations as Guarantors) and the Trustee; and as may be further supplemented (including by this Twenty-Third Supplemental Indenture) and/or amended.

EX-4.43

Exhibit 4.43

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES

EXCHANGE ACT OF 1934

Toll Brothers, Inc. has two class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: (a) our common stock and (b) our guarantee of the 5.625% Senior Notes due 2024 (the “Senior Notes”) issued by Toll Brothers Finance Corp. (“Toll Brothers Finance”), a wholly owned subsidiary of Toll Brothers, Inc.

In this Exhibit 4.43, when we refer to “Toll Brothers Inc.,” the “Company,” “we,” “us” or “our” or when we otherwise refer to ourselves, we mean Toll Brothers, Inc., excluding, unless otherwise expressly stated or the context requires, our subsidiaries; all references to “common stock” refer only to common stock issued by us and not to any common stock issued by any subsidiary.

DESCRIPTION OF COMMON STOCK

The general terms and provisions of our common stock are summarized below. This summary does not purport to be complete and is subject to, and is qualified in its entirety by express reference to, the provisions of our restated certificate of incorporation, as amended, and by-laws, as amended, each of which is filed as an exhibit to the Annual Report on Form 10‑K of which this Exhibit 4.43 is a part. We encourage you to read our restated certificate of incorporation, as amended and by-laws, as amended, and the applicable provisions of the General Corporation Law of the State of Delaware (the “Delaware General Corporation Law”) for additional information.

As of October 31, 2019, our authorized capital stock consisted of 400,000,000 shares of common stock, $.01 par value per share, and 15,000,000 shares of preferred stock, $.01 par value per share.

Common Stock

Subject to the rights and preferences of any holders of our preferred stock, of which there were none as of October 31, 2019, the holders of our common stock are entitled to one vote per share on all matters that require a vote of the common stockholders. In addition, the holders of our common stock are entitled to receive such dividends as legally may be declared by the Board of Directors and to receive pro rata our net assets available for distribution to such holders upon liquidation. There are no cumulative voting, preemptive, conversion or redemption rights applicable to our common stock. All outstanding shares of common stock are fully paid and non-assessable.

On March 17, 2010, the Board of Directors of the Company adopted a Certificate of Amendment to the Second Restated Certificate of Incorporation of the Company (the “Certificate of Amendment”). The Certificate of Amendment includes an amendment approved by the Company’s stockholders at the 2010 Annual Meeting which restricts certain transfers of the Company’s common stock in order to preserve the tax treatment of the Company’s net operating and unrealized tax losses. The Certificate of Amendment’s transfer restrictions generally restrict any direct or indirect transfer of the Company’s common stock if the effect would be to increase the direct or indirect ownership of any Person (as defined in the Certificate of Amendment) from less than 4.95% to 4.95% or more of the Company’s common stock, or increase the ownership percentage of a Person owning or deemed to own 4.95% or more of the Company’s common stock. Any direct or indirect transfer attempted in violation of this restriction would be void as of the date of the prohibited transfer as to the purported transferee.

Except as otherwise specifically provided by law or as set forth in “Anti-Takeover Effects of our Certificate of Incorporation, our Bylaws and Delaware Law-Board of Directors and Restrictions On Removal” below, all matters coming before a meeting of stockholders are determined by a majority of the votes cast affirmatively or negatively.

Our common stock is traded on the New York Stock Exchange under the symbol “TOL.”

The registrar and transfer agent for our common stock is American Stock Transfer & Trust Company, LLC.

Anti-Takeover Effects of our Certificate of Incorporation, our Bylaws, our Rights Plan and Delaware Law

Blank Check Preferred Stock. Our Certificate of Incorporation provides for 15,000,000 authorized shares of preferred stock. The existence of authorized but unissued shares of preferred stock may enable the Board of Directors to render more difficult or to discourage an attempt to obtain control of the Company by means of a merger, tender offer, proxy contest or otherwise. For example, if in the due exercise of its fiduciary obligations, the Board of Directors were to determine that a takeover proposal is not in the best interests of the Company, the Board of Directors could cause shares of preferred stock to be issued without stockholder approval in one or more private offerings or other transactions that might dilute the voting or other rights of the proposed acquiror or insurgent stockholder or stockholder group. In this regard, the Certificate of Incorporation grants our Board of Directors broad power to establish the rights and preferences of authorized and unissued shares of preferred stock. The issuance of shares of preferred stock could decrease the amount of earnings and assets available for distribution to holders of shares of common stock, may make it more difficult to change the composition of our Board of Directors and may discourage or make difficult any attempt by a person or group to obtain control of us.

Board of Directors and Restrictions On Removal. Our Certificate of Incorporation provides for the annual election of the entire Board of Directors each year.

Our bylaws provide that any election of directors that is not a contested election will be determined by a majority of the votes cast. For the purposes of the applicable section of our bylaws, a “majority of the votes cast” means that the number of votes cast “for” a nominee or matter must exceed the number of votes cast “against” that nominee or matter (with “abstentions” and “broker non-votes” not counted as a vote cast with respect to that nominee or matter). Any contested election of directors will be determined by a plurality of the votes cast. An election will be deemed contested if the secretary of Toll Brothers, Inc. receives a notice that a stockholder has nominated a person for election to the Board of Directors in compliance with the notice requirements set forth in our bylaws and such nomination has not been withdrawn on or prior to the tenth day before we first mail our notice of meeting for such meeting to the stockholders. Any incumbent director who fails to receive a majority of the votes cast in an election that is not a contested election will offer to resign from the Board of Directors promptly after certification by Toll Brothers, Inc. of the election results. A nominating and corporate governance committee established in accordance with our bylaws shall consider the resignation offer and make a recommendation to the Board of Directors as to whether to either (i) accept the offer of resignation or (ii) reject the offer and seek to address the underlying cause or causes of the “against” votes. The Board of Directors will take formal action on the nominating and corporate governance committee’s recommendation within 90 days from the date of the certification of the election results and cause its decision and the rationale behind its decision to be promptly publicly disclosed by Toll Brothers, Inc. Any director who offers to resign as a result of a failure to receive the majority vote required for re-election will not participate in the nominating and corporate governance committee’s or the Board of Director’s deliberations or vote on whether to accept his or her resignation offer. All elections of directors will be by written ballot unless otherwise provided in our Certificate of Incorporation.

Our Certificate of Incorporation also provides that:

• any vacancy on the Board of Directors or any newly created directorship will be filled by the remaining directors then in office, though they may constitute less than a quorum; and

• advance notice of stockholder nominations for the elections of directors must be given in the manner provided by our bylaws.

Our Certificate of Incorporation provides that any director may be removed from office, with or without cause, by the affirmative vote of the holders of 66 2/3% of the combined voting power of our then outstanding shares of stock entitled to vote generally in the election of directors, voting as a single class.

Our Certificate of Incorporation requires a 66⅔% stockholder vote necessary to alter, amend or repeal certain provisions of our Certificate of Incorporation (including with respect to certain matters related to our Board of Directors) and all other provisions of our bylaws adopted by the Board of Directors. These provisions may make it more difficult to change the composition of our Board of Directors and may discourage or make difficult any attempt by a person or group to obtain control of us.

Delaware Anti-Takeover Statute. We are subject to Section 203 of the Delaware General Corporation Law, which, subject to certain exceptions, prohibits a Delaware corporation from engaging in any business combination with any interested stockholder for a period of three years following the date that such stockholder became an interested stockholder, unless (a) prior to such date, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder, (b) upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the number of shares outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (i) by persons who are directors and also officers and (ii) by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer or (c) at or subsequent to such time the business combination is approved by the board of directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder. The application of Section 203 of the Delaware General Corporation Law may discourage or make difficult any attempt by a person or group to obtain control of us.

Section 203 of the Delaware General Corporation Law defines the term “business combination” to include: (a) any merger or consolidation involving the corporation or any of its direct or indirect majority-owned subsidiaries and the interested stockholder or another entity if the merger or consolidation is caused by the interested stockholder; (b) any sale, lease, exchange, mortgage, pledge or transfer of 10% or more of either the aggregate market value of all of the assets of the corporation determined on a consolidated basis or the aggregate market value of all the outstanding stock of the corporation or any of its direct or indirect majority-owned subsidiaries involving the interested stockholder; (c) subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation or by any of its direct or indirect majority-owned subsidiaries of any stock of the corporation or that subsidiary to the interested stockholder; (d) subject to certain exceptions, any transaction involving the corporation or any of its direct or indirect majority-owned subsidiaries that has the effect of increasing the proportionate share of the stock of any class or series of the corporation or that subsidiary owned by the interested stockholder; or (e) the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation or any of its direct or indirect majority-owned subsidiaries. In general, Section 203 defines an “interested stockholder” as any entity or person owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled by such entity or person.

DESCRIPTION OF THE SENIOR NOTES

The Senior Notes were issued by Toll Brothers Finance under an indenture (the “Base Indenture”), dated as of February 7, 2012, among Toll Brothers Finance, as issuer, the guarantors named therein, including Toll Brothers, Inc. (collectively, the “Guarantors”), and The Bank of New York Mellon as trustee (the “Trustee”), as amended and supplemented by the resolutions dated on or about November 21, 2013 authorizing the Senior Notes (the “Resolutions” and, together with the Base Indenture, the “Indenture”). Capitalized terms that are used but not otherwise defined herein have the meanings assigned to them in the Indenture.

The statements under this caption relating to the Senior Notes and the Indenture are brief summaries only, are not complete and are subject to, and are qualified in their entirety by reference to, all of the provisions of the Indenture and the Form of Global Notes for the Senior Notes, each of which is filed as an exhibit to the Annual Report on Form 10‑K of which this Exhibit 4.43 is a part. We encourage you to read the Indenture and the Form of Global Notes for the Senior Notes for more information.

General

As of October 31, 2019, $250 million aggregate principal amount of Senior Notes were outstanding. The Senior Notes will mature on January 15, 2024. Interest on the Senior Notes accrues at a rate of 5.625% per annum, is computed on the basis of a 360-day year of twelve 30-day months and is payable semi-annually in arrears on each January 15 and July 15 (each an “Interest Payment Date”). Interest accrues from the date it was most recently paid or duly provided for. Toll Brothers Finance will pay interest to the persons in whose names the Senior Notes are registered at the close of business on January 1 or July 1, as the case may be, before any Interest Payment Date. If any Interest Payment Date or maturity date of any of the Senior Notes is not a business day at any place of payment, then payment of principal, premium, if any, and interest need not be made at such place of payment on that date but may be made on the next succeeding business day at that place of payment, and no interest will accrue on the amount payable for the period from and after such Interest Payment Date or maturity date, as the case may be.

The Senior Notes are not entitled to the benefit of any sinking fund provisions.

Toll Brothers Finance expect that payments of principal, premium, if any, and interest to owners of beneficial interests in global notes in respect of the 2024 notes will be made in accordance with the procedures of The Depository Trust Company (“DTC”) and its participants in effect from time to time. DTC will act as the depositary for such global notes.

The Senior Notes were issued only in fully registered form without coupons, in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The Senior Notes will initially be represented by one or more global notes in book-entry form.

The principal of, premium, if any, and interest on the Senior Notes is payable, and, subject to certain restrictions on transfer, the Senior Notes may be surrendered for registration of transfer or exchange, at the office or agency maintained by Toll Brothers Finance for that purpose; provided that payments of interest may be made at Toll Brothers Finance’s option by check mailed to the address of the persons entitled thereto or by transfer to an account maintained by the payee with a bank located in the United States. The office or agency initially maintained by Toll Brothers Finance for the foregoing purposes will be the corporate trust office of the Trustee. No service charge will be made for any registration of transfer or exchange of the Senior Notes, but Toll Brothers Finance may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

The Indenture does not limit the amount of indebtedness that Toll Brothers Finance, Toll Brothers, Inc. or any of Toll Brothers, Inc.’s subsidiaries may issue. The Indenture provides only limited protection against significant corporate events that could adversely affect investments in the Senior Notes.

The Senior Notes currently are traded on the New York Stock Exchange under the symbol “TOL/24”

Ranking

The Senior Notes are unsecured and unsubordinated obligations of Toll Brothers Finance. The Senior Notes rank equally and ratably with the other unsecured and unsubordinated indebtedness of Toll Brothers Finance.

Guarantees

Toll Brothers, Inc. conducts its operations through its subsidiaries and, therefore, it is primarily dependent on the earnings and cash flows of its subsidiaries to meet its debt service obligations. Any right Toll Brothers Finance, Toll Brothers, Inc. or Toll Brothers, Inc.’s creditors have to participate in the assets of any of Toll Brothers, Inc.’s subsidiaries upon any liquidation or reorganization of any such subsidiary will be subject to the prior claims of that subsidiary’s creditors, including trade creditors. Accordingly, the Senior Notes are structurally subordinated to the prior claims of creditors of Toll Brothers, Inc.’s subsidiaries other than Toll Brothers Finance. The Senior Notes do, however, have the benefit of the guarantees (each, a “Guarantee” and collectively, the “Guarantees”) from Toll Brothers, Inc. and all of Toll Brothers, Inc.’s subsidiaries that are guarantors under Toll Brother Finance’s revolving credit facility (each, a “Guarantor” and collectively, the “Guarantors”). The Senior Notes and the Guarantee of Toll Brothers, Inc. are structurally subordinated to the prior claims of creditors of non-guarantor subsidiaries of Toll Brothers, Inc., including trade creditors.

Payment of principal of, premium, if any, and interest on the Senior Notes is fully and unconditionally guaranteed, jointly and severally, on a senior basis by each of the Guarantors. Each Guarantee is a full and unconditional unsecured senior obligation of the Guarantor issuing such Guarantee, ranking equal in right of payment with all existing and future debt of the Guarantor that is pari passu with the Guarantee. Each Guarantee from a Guarantor is effectively subordinated to the secured debt of that Guarantor.

The Indenture provides that, in the event any Guarantee would constitute or result in a fraudulent conveyance in violation of applicable federal law or other similar law of any relevant jurisdiction, the liability of the Guarantor under such Guarantee will be reduced to the maximum amount, after giving effect to all other contingent and fixed liabilities of such Guarantor and after giving effect to certain collections from or payments made by or on behalf of any other Guarantor, permissible under the applicable federal law or other similar law.

Toll Brothers, Inc.’s subsidiaries are separate and distinct legal entities and have no obligation, contingent or otherwise, to pay any amounts due pursuant to the Senior Notes or to make any funds available therefor, whether by dividends, loans or other payments, other than if and as expressly provided in the Guarantees. The payment of dividends and the making of loans and advances to Toll Brothers, Inc. by its subsidiaries are subject to contractual, statutory or regulatory restrictions, are contingent upon the earnings of those subsidiaries and are subject to various business considerations.

The Indenture provides that any subsidiary of Toll Brothers, Inc. that provides a guarantee of the Revolving Credit Facility will guarantee the Senior Notes. The Indenture further provides that any Guarantor other than Toll Brothers, Inc. may be released from its Guarantee so long as (1) no Default or Event of Default exists or would result from release of such Guarantee, (2) the Guarantor being released has Consolidated Net Worth of less than 5% of Toll Brothers, Inc.’s Consolidated Net Worth as of the end of the most recent fiscal quarter, (3) the Guarantors released from their Guarantees in any year end period comprise in the aggregate less than 10% (or 15% if and to the extent necessary to permit the cure of a Default) of Toll Brothers, Inc.’s Consolidated Net Worth as of the end of the most recent fiscal quarter, (4) such release would not have a material adverse effect on the homebuilding business of Toll Brothers, Inc. and its subsidiaries and (5) the Guarantor is released from its guaranty(ees) under the Revolving Credit Facility. If there are no guarantors under the Revolving Credit Facility, Guarantors under the Indenture, other than Toll Brothers, Inc., will be released from their Guarantees.

Further Issuances

Toll Brothers Finance may, from time to time, without the consent of the holders of the Senior Notes, create and issue additional Senior Notes (“Additional Notes”) having the same terms as the Senior Notes, except for the issue date, issue

price and, in some cases, the first interest payment date for such Additional Notes. Toll Brothers Finance will not, however, issue such Additional Notes unless they are fungible for U.S. federal income tax purposes with the Senior Notes. Any Additional Notes will constitute part of the same series as the Senior Notes.

Optional Redemption

Prior to October 15, 2023 Toll Brothers Finance may, at its option, redeem the Senior Notes in whole at any time, or in part from time to time, on at least 30 but not more than 60 days’ prior notice, at a redemption price equal to the greater of:

    •     100% of the principal amount of the Senior Notes being redeemed, and

    •     the present value of the Remaining Scheduled Payments on the Senior Notes being redeemed on the redemption date, discounted to the date of redemption, on a semi-annual basis, at the Treasury Rate plus 50 basis points.

Toll Brothers Finance will also pay accrued and unpaid interest on the Senior Notes to the date of redemption. In determining the redemption price and accrued interest, interest will be calculated on the basis of a 360-day year consisting of twelve 30-day months.

On and after October 15, 2023, Toll Brothers Finance may, at its option, redeem the Senior Notes in whole at any time, or in part from time to time, at a redemption price equal to 100% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest on the principal amount of the Senior Notes being redeemed to the redemption date.

If money sufficient to pay the redemption price of and accrued and unpaid interest on the Senior Notes to be redeemed is deposited with the Trustee on or before the redemption date, on and after the redemption date interest will cease to accrue on the Senior Notes (or such portions thereof) called for redemption and such Senior Notes will cease to be outstanding.

In determining whether to redeem the Senior Notes, Toll Brothers Finance will generally consider one or more of the following factors:

    •         prevailing interest rates;

    •         available cash; and

    •         other business considerations.

“Comparable Treasury Issue” means, with respect to the Senior Notes, the United States Treasury security selected by the Reference Treasury Dealer as having a maturity comparable to the remaining term of the Senior Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Senior Notes.

“Comparable Treasury Price” means, with respect to any redemption date, (1) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (2) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.

“Quotation Agent” means one of the Reference Treasury Dealers appointed by us.

“Reference Treasury Dealer” means (A) Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBS Securities Inc. and SunTrust Robinson Humphrey, Inc. (or their respective successors or affiliates which are Primary Treasury Dealers), and any successor; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government

securities dealer in New York City (a “Primary Treasury Dealer”), Toll Brothers Finance will substitute therefor another Primary Treasury Dealer; and (B) any other Primary Treasury Dealer(s) selected by us.

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m. on the third business day preceding such redemption date.

“Remaining Scheduled Payments” means, with respect to any Senior Notes, the remaining scheduled payments of the principal thereof to be redeemed and interest thereon that would be due after the related redemption date but for such redemption; provided, however, that, if such redemption date is not an interest payment date with respect to such Senior Note, the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to such redemption date.

“Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

Certain Covenants

Restrictions on Secured Debt. The Indenture provides that Toll Brothers Finance and Toll Brothers, Inc. will not, and will not cause or permit a Restricted Subsidiary to, create, incur, assume or guarantee any Secured Debt unless the Senior Notes will be secured equally and ratably with (or prior to) such Secured Debt, with certain exceptions. This restriction does not prohibit the creation, incurrence, assumption or guarantee of Secured Debt that is secured by:

(1) Security Interests in model homes, homes held for sale, homes that are under contract for sale, contracts for the sale of homes, land (improved or unimproved), manufacturing plants, warehouses or office buildings and fixtures and equipment located thereat or thereon;

(2) Security Interests in property at the time of its acquisition by Toll Brothers Finance, Toll Brothers, Inc. or a Restricted Subsidiary, including Capitalized Lease Obligations, which Security Interests secure obligations assumed by Toll Brothers Finance, Toll Brothers, Inc. or a Restricted Subsidiary, or in the property of a corporation or other entity at the time it is merged into or consolidated with Toll Brothers Finance, Toll Brothers, Inc. or a Restricted Subsidiary (other than Secured Debt created in contemplation of the acquisition of such property or the consummation of such a merger or where the Security Interest attaches to or affects the property of Toll Brothers Finance, Toll Brothers, Inc. or a Restricted Subsidiary prior to such transaction);

(3) Security Interests arising from conditional sales agreements or title retention agreements with respect to property acquired by Toll Brothers Finance, Toll Brothers, Inc. or a Restricted Subsidiary;

(4) Security Interests incurred in connection with pollution control, industrial revenue, water, sewage or any similar item; and

(5) Security Interests securing Indebtedness of a Restricted Subsidiary owing to Toll Brothers Finance, Toll Brothers, Inc. or to another Restricted Subsidiary that is wholly-owned (directly or indirectly) by Toll Brothers, Inc. or Security Interests securing Toll Brothers Finance Indebtedness owing to a Guarantor.

Additionally, such permitted Secured Debt includes any amendment, restatement, supplement, renewal, replacement, extension or refunding, in whole or in part, of Secured Debt permitted at the time of the original incurrence thereof.

In addition, Toll Brothers Finance and the Guarantors may create, incur, assume or guarantee Secured Debt, without equally and ratably securing the Senior Notes, if immediately thereafter the sum of (1) the aggregate principal amount of all Secured Debt outstanding (excluding Secured Debt permitted under clauses (1) through (5) above and any Secured Debt in relation to which the Senior Notes have been equally and ratably secured) and (2) all Attributable Debt (as

defined below) in respect of Sale and Lease-back Transactions (as defined below) (excluding Attributable Debt in respect of Sale and Lease-back Transactions as to which the provisions of clauses (1) through (3) described under “Restrictions on Sale and Lease-back Transactions” have been complied with) as of the date of determination would not exceed 20% of Consolidated Net Tangible Assets.

The provisions described above with respect to limitations on Secured Debt are not applicable to Non-Recourse Indebtedness by virtue of the definition of Secured Debt, and will not restrict or limit Toll Brothers Finance’s or any Guarantors’ ability to create, incur, assume or guarantee any unsecured Indebtedness, or the ability of any subsidiary which is not a Restricted Subsidiary to create, incur, assume or guarantee any secured or unsecured Indebtedness.

Restrictions on Sale and Lease-Back Transactions. The Indenture provides that Toll Brothers Finance and Toll Brothers, Inc. will not, and will not permit any Restricted Subsidiary to, enter into any Sale and Lease-back Transaction, unless:

(1) notice is promptly given to the Trustee of the Sale and Lease-back Transaction;

(2) fair value is received by Toll Brothers Finance, Toll Brothers, Inc. or the relevant Restricted Subsidiary for the property sold (as determined in good faith by Toll Brothers, Inc. communicated in writing to the Trustee); and

(3) Toll Brothers Finance, Toll Brothers, Inc. or a Restricted Subsidiary, within 365 days after the completion of the Sale and Lease-back Transaction, applies, or enters into a definitive agreement to apply within such 365-day period, an amount equal to the net proceeds of such Sale and Lease-back Transaction:

    •    to the redemption, repayment or retirement of (a) senior notes of any series under the Existing Indentures (including the cancellation by the Trustee of any senior notes of any series delivered by Toll Brothers Finance to the Trustee), (b) Indebtedness of ours that ranks equally with the Senior Notes, or (c) Indebtedness of any Guarantor that ranks equally with the Guarantee of such Guarantor, and/or

    •    to the purchase by Toll Brothers Finance, Toll Brothers, Inc. or any Restricted Subsidiary of property used in their respective trade or businesses.

This provision will not apply to a Sale and Lease-back Transaction that relates to a sale of a property that occurs within 180 days from the latest of (x) the date of acquisition of the property by Toll Brothers Finance, Toll Brothers, Inc. or a Restricted Subsidiary, (y) the date of the completion of construction of that property or (z) the date of commencement of full operations on that property. In addition, Toll Brothers Finance and the Guarantors may, without complying with the above restrictions, enter into a Sale and Lease-back Transaction if immediately thereafter the sum of (1) the aggregate principal amount of all Secured Debt outstanding (excluding Secured Debt permitted under clauses (1) through (5) described in “Restrictions on Secured Debt” above and any Secured Debt in relation to which the Senior Notes have been equally and ratably secured) and (2) all Attributable Debt in respect of Sale and Lease-back Transactions (excluding Attributable Debt in respect of Sale and Lease-back Transactions as to which the provisions of clauses (1) through (3) above have been complied with) as of the date of determination would not exceed 20% of Consolidated Net Tangible Assets.

Change of Control Repurchase Event

If a change of control repurchase event occurs, unless Toll Brothers Finance has exercised its right to redeem the Senior Notes as described above, Toll Brothers Finance will make an offer to each holder of Senior Notes to repurchase all or any part (in amounts of $2,000 or in integral multiples of $1,000 in excess thereof) of that holder’s Senior Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of Senior Notes repurchased plus any accrued and unpaid interest on the Senior Notes repurchased to the date of purchase. Within 30 days following any change of control repurchase event or, at Toll Brothers Finance’s option, prior to any change of control, but after the public announcement of the change of control, Toll Brothers Finance will mail a notice to each holder, with a copy to the Trustee, describing the transaction or transactions that constitute or may constitute the change of control repurchase event and offering to repurchase Senior Notes on the payment date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed. The notice shall, if mailed prior to the date of

consummation of the change of control, state that the offer to purchase is conditioned on the change of control repurchase event occurring on or prior to the payment date specified in the notice. Toll Brothers Finance will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations under the Exchange Act to the extent those laws and regulations are applicable in connection with the repurchase of the Senior Notes as a result of a change of control repurchase event. To the extent that the provisions of any securities laws or regulations conflict with the change of control repurchase event provisions of the Senior Notes, Toll Brothers Finance will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the change of control repurchase event provisions of the Senior Notes by virtue of such conflict.

On the change of control repurchase event payment date, Toll Brothers Finance will, to the extent lawful:

1. accept for payment all Senior Notes or portions of Senior Notes properly tendered pursuant to its offer;

2. deposit with the paying agent an amount equal to the aggregate purchase price in respect of all Senior Notes or portions of Senior Notes properly tendered; and

3. deliver or cause to be delivered to the Trustee the Senior Notes properly accepted, together with an officers’ certificate stating the aggregate principal amount of Senior Notes being purchased by us.

The paying agent will promptly mail to each holder of Senior Notes properly tendered the purchase price for the Senior Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each holder a new Senior Note equal in principal amount to any unpurchased portion of any Senior Notes surrendered; provided that each new Senior Note will be in a principal amount of $2,000 or an integral multiple of $1,000.

Toll Brothers Finance will not be required to make an offer to repurchase the Senior Notes upon a change of control repurchase event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by Toll Brothers Finance and such third party purchases all Senior Notes properly tendered and not withdrawn under its offer.

The term “below investment grade rating event” means the Senior Notes are rated below investment grade (defined below) by all three rating agencies on any date from the date of the public notice of an arrangement that could result in a change of control until the end of the 60-day period following public notice of the occurrence of a change of control (which period shall be extended so long as the rating of the Senior Notes is under publicly announced consideration for possible downgrade by any of the rating agencies); provided that a below investment grade rating event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular change of control (and thus shall not be deemed a below investment grade rating event for purposes of the definition of change of control repurchase event) if the rating agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the trustee in writing at Toll Brothers Finance’s request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable change of control (whether or not the applicable change of control shall have occurred at the time of the below investment grade rating event).

The term “change of control” means the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) becomes the beneficial owner, directly or indirectly, of more than 50% of Toll Brothers, Inc.’s voting stock (defined below), measured by voting power rather than number of shares. Notwithstanding the foregoing, a transaction will not be deemed to involve a change of control if (1) Toll Brothers Inc. becomes a wholly owned subsidiary of a holding company and (2) the holders of the voting stock of such holding company immediately following that transaction are substantially the same as the holders of Toll Brothers Finance’s voting stock immediately prior to that transaction.

The term “change of control repurchase event” means the occurrence of both a change of control and a below investment grade rating event.

The term “Fitch” means Fitch Ratings.

The term “investment grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating categories of Moody’s); a rating of BBB- or better by Fitch (or its equivalent under any successor rating categories of Fitch); a rating of BBB- or better by S&P (or its equivalent under any successor rating categories of S&P); and the equivalent investment grade credit rating from any additional rating agency (defined below) or rating agencies selected by us.

The term “Moody’s” means Moody’s Investors Service, Inc.

The term “rating agency” means (1) each of Moody’s, Fitch and S&P; and (2) if any of Moody’s, Fitch or S&P ceases to rate the Senior Notes or fails to make a rating of the Senior Notes publicly available (for reasons outside of Toll Brothers Finance’s control), a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by Toll Brothers Finance (as certified by a resolution of its board of directors) as a replacement agency for Moody’s, Fitch or S&P, or all three, as the case may be.

The term “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

The term “voting stock” of any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date means the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person.

Definitions

“Attributable Debt” means, with respect to a Sale and Lease-back Transaction, the present value (discounted at the weighted average effective interest cost per annum of the outstanding senior notes of all series issued by Toll Brothers Finance, compounded semiannually) of the obligation of the lessee for rental payments during the remaining term of the lease included in such transaction, including any period for which such lease has been extended or may, at the option of the lessor, be extended or, if earlier, until the earliest date on which the lessee may terminate such lease upon payment of a penalty (in which case the obligation of the lessee for rental payments shall include such penalty), after excluding all amounts required to be paid on account of maintenance and repairs, insurance, taxes, assessments, water and utility rates and similar charges.

“Revolving Credit Facility” means the Credit Agreement by and among First Huntingdon Finance Corp., Toll Brothers, Inc. and the Lenders named therein dated August 1, 2013, and any related documents (including, without limitation, any guarantees or security documents), as such agreements (and such related documents) may be amended, restated, supplemented, renewed, replaced by the existing lenders or by successors or otherwise modified from time to time, including any agreement(s) extending the maturity of or refinancing or refunding all or any portion of the indebtedness or increasing the amount to be borrowed under such agreement(s) or any successor agreement(s), whether or not by or among the same parties.

“Consolidated Net Tangible Assets” means the total amount of assets which would be included on a combined balance sheet of Toll Brothers Finance and the Guarantors under accounting principles generally accepted in the United States (less applicable reserves and other properly deductible items) after deducting therefrom:

(1) all short-term liabilities, except for liabilities payable by their terms more than one year from the date of determination (or renewable or extendible at the option of the obligor for a period ending more than one year after such date) and liabilities in respect of retiree benefits other than pensions for which the Restricted Subsidiaries are required to accrue pursuant to Statement of Financial Accounting Standards No. 106;

(2) investments in subsidiaries that are not Restricted Subsidiaries; and

(3) all goodwill, trade names, trademarks, patents, unamortized debt discount, unamortized expense incurred in the issuance of debt and other tangible assets.

“Consolidated Net Worth” of any person means the consolidated stockholders’ equity of the person determined in accordance with accounting principles generally accepted in the United States.

“Existing Indentures” means (1) the Indenture dated as of November 22, 2002, among the Issuer, the guarantors named therein and The Bank of New York Mellon (as successor to J.P. Morgan Trust Company, National Association), as trustee, as amended and supplemented by the First Supplemental Indenture through the Twenty-Second Supplemental Indenture and as may be further amended and supplemented, (2) the Indenture dated as of April 20, 2009, among the Issuer, the guarantors named therein and The Bank of New York Mellon, as trustee, as amended and supplemented by the First Supplemental Indenture through the Fourth Supplemental Indenture, the resolutions dated as of April 20, 2009 authorizing the 8.910% Senior Notes due 2017 and the resolutions dated as of September 22, 2009 authorizing the 6.750% Senior Notes due 2019, and as may be further amended and supplemented, (3) the Indenture dated as of February 7, 2012, among the Issuer, the guarantors named therein and The Bank of New York Mellon, as trustee, as amended and supplemented by the First Supplemental Indenture and the Second Supplemental Indenture and the resolutions dated as of January 31, 2012 authorizing the 5.875% Senior Notes due 2022 and the resolutions dated as of April 3, 2013 and May 8, 2013 authorizing the 4.375% Senior Notes due 2023, and as may be further amended and supplemented and (4) the Indenture dated as of September 11, 2012, among the Issuer, the guarantors named therein and The Bank of New York Mellon, as trustee, pursuant to which the 0.5% Exchangeable Senior Notes due 2032 were issued, as amended and supplemented by the First Supplemental Indenture, and as may be further amended and supplemented.

“Indebtedness” means (1) any liability of any person (A) for borrowed money, (B) evidenced by a bond, note, debenture or similar instrument (including a purchase money obligation) given in connection with the acquisition of any businesses, properties or assets of any kind (other than a trade payable or a current liability arising in the ordinary course of business), (C) for the payment of money relating to a Capitalized Lease Obligation or (D) for all Redeemable Capital Stock valued at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; (2) any liability of others described in the preceding clause (1) that such person has guaranteed or that is otherwise its legal liability; (3) all Indebtedness referred to in (but not excluded from) clauses (1) and (2) above of other persons and all dividends of other persons, the payment of which is secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Security Interest upon or in property (including, without limitation, accounts and contract rights) owned by such person, even though such person has not assumed or become liable for the payment of such Indebtedness; and (4) any amendment, supplement, modification, deferral, renewal, extension or refunding of any liability of the types referred to in clauses (1), (2) and (3) above.

“Non-Recourse Indebtedness” means Indebtedness or other obligations secured by a lien on property to the extent that the liability for the Indebtedness or other obligations is limited to the security of the property without liability on the part of Toll Brothers, Inc., Toll Brothers Finance or any Restricted Subsidiary (other than the Restricted Subsidiary which holds title to the property) for any deficiency.

“Redeemable Capital Stock” means any capital stock of Toll Brothers Finance, Toll Brothers, Inc. or any subsidiary of Toll Brothers, Inc. that, either by its terms, by the terms of any security into which it is convertible or exchangeable or otherwise, (1) is or upon the happening of an event or passage of time would be required to be redeemed on or prior to the final stated maturity of the Senior Notes or (2) is redeemable at the option of the holder thereof at any time prior to such final stated maturity or (3) is convertible into or exchangeable for debt securities at any time prior to such final stated maturity.

“Restricted Subsidiary” means any Guarantor other than Toll Brothers, Inc.

“Sale and Lease-back Transaction” means a sale or transfer made by Toll Brothers Finance, Toll Brothers, Inc. or a Restricted Subsidiary (except a sale or transfer made to Toll Brothers Finance, Toll Brothers, Inc. or another Restricted Subsidiary) of any property which is either (a) a manufacturing facility, office building or warehouse whose book value equals or exceeds 1% of Consolidated Net Tangible Assets as of the date of determination or (b) another property (not including a model home) which exceeds 5% of Consolidated Net Tangible Assets as of the date of determination, if such sale or transfer is made with the agreement, commitment or intention of leasing such property to Toll Brothers Finance, Toll Brothers, Inc. or a Restricted Subsidiary for more than a three-year term.

“Secured Debt” means any Indebtedness which is secured by (1) a Security Interest in any of the property of Toll Brothers Finance, Toll Brothers, Inc. or any Restricted Subsidiary or (2) a Security Interest in shares of stock owned directly or indirectly by Toll Brothers Finance, Toll Brothers, Inc. or a Restricted Subsidiary in a corporation or in equity interests owned by Toll Brothers Finance, Toll Brothers, Inc. or a Restricted Subsidiary in a partnership or other entity not organized as a corporation or in Toll Brothers, Inc.’s rights or the rights of a Restricted Subsidiary in respect of Indebtedness of a corporation, partnership or other entity in which Toll Brothers Finance, Toll Brothers, Inc. or a Restricted Subsidiary has an equity interest; provided that “Secured Debt” shall not include Non-Recourse Indebtedness, as such categories of assets are determined in accordance with accounting principles generally accepted in the United States. The securing in the foregoing manner of any such Indebtedness which immediately prior thereto was not Secured Debt shall be deemed to be the creation of Secured Debt at the time security is given.

“Security Interests” means any mortgage, pledge, lien, encumbrance or other security interest which secures the payment or performance of an obligation.

“Significant Subsidiary” means any Subsidiary (1) whose revenues exceed 10% of Toll Brothers, Inc.’s total revenues, in each case for the most recent fiscal year, or (2) whose net worth exceeds 10% of Toll Brothers, Inc.’s total stockholders’ equity, in each case as of the end of the most recent fiscal year.

“Subsidiary” means any person of which Toll Brothers, Inc., at the time of determination by Toll Brothers, Inc., directly and/or indirectly through one or more Subsidiaries, owns more than 50% of the shares of Voting Stock.

“Voting Stock” means any class or classes of capital stock pursuant to which the holders thereof have the general voting power under ordinary circumstances to elect at least a majority of the board of directors, managers or trustees of any person (irrespective of whether or not, at the time, stock of any other class or classes shall have, or might have, voting power by reason of the happening of any contingency).

Consolidation, Merger and Sale of Assets

Neither Toll Brothers Finance nor any of the Guarantors will consolidate with or merge with or into or sell, assign, transfer or lease all or substantially all of its assets to another person unless:

(1) such person is a corporation, in the case of Toll Brothers Finance or Toll Brothers, Inc., or any other legal entity in the case of any other Guarantor, organized under the laws of the United States of America or any state thereof;

(2) such person assumes by supplemental indenture, in a form reasonably satisfactory to the Trustee, all the obligations of Toll Brothers Finance or such Guarantor, as the case may be, relating to the Senior Notes or, the Guarantee, as the case may be, and the Indenture; and

(3) immediately after the transaction no Default or Event of Default exists; provided that this clause (3) will not restrict or be applicable to a consolidation, merger, sale, assignment, transfer or lease of a Guarantor with or into Toll Brothers Finance, Toll Brothers, Inc. or another Subsidiary that is, or concurrently with the completion of such consolidation, merger, sale, assignment, transfer, or lease becomes, a Guarantor.

Upon any such consolidation, merger, sale, assignment or transfer (including any merger, sale, assignment, transfer or consolidation described in the proviso at the end of the immediately preceding clause), the successor corporation or legal entity, as applicable, will be substituted for Toll Brothers Finance or such Guarantor, as applicable, under the Indenture. The successor may then exercise every power and right of Toll Brothers Finance or such Guarantor, as applicable, under the Indenture, and Toll Brothers Finance or such Guarantor, as applicable, will be released from all of its respective liabilities and obligations in respect of the Senior Notes or the Guarantee, as applicable, and the Indenture. If Toll Brothers Finance or any Guarantor leases all or substantially all of its assets, the lessee will be the successor to Toll Brothers Finance or such Guarantor, as applicable, and may exercise every power and right of Toll Brothers Finance or such Guarantor, as the case may be, under the Indenture, but Toll Brothers Finance or such Guarantor, as the case may

be, will not be released from its respective obligations to pay the principal of and premium, if any, and interest, if any, on the Senior Notes.

Events of Default

Each of the following is an Event of Default with respect to the Senior Notes under the Indenture:

(1) the failure by Toll Brothers Finance or a Guarantor to pay interest on the Senior Notes when the same becomes due and payable and the continuance of any such failure for a period of 30 days;

(2) the failure by Toll Brothers Finance or a Guarantor to pay the principal of the Senior Notes when the same becomes due and payable at maturity, upon acceleration or otherwise, or the failure to redeem any of the Senior Notes if and when required pursuant to any Special Mandatory Redemption;

(3) the failure by Toll Brothers Finance, Toll Brothers, Inc. or any Guarantor which is a Significant Subsidiary to comply with any of its agreements or covenants in, or provisions of, the Senior Notes, the Guarantees (as they relate to the Senior Notes) or the Indenture (as they relate to the Senior Notes), other than a failure specifically dealt with elsewhere in the Indenture, and such failure shall not have been remedied within 60 days after receipt of written notice of such failure by Toll Brothers Finance and Toll Brothers, Inc. from the Trustee or by Toll Brothers Finance, Toll Brothers, Inc. and the Trustee from the holders of at least 25% in aggregate principal amount of the then outstanding Senior Notes;

(4) any default under an instrument evidencing or securing any of Toll Brothers Finance’s Indebtedness or the Indebtedness of any Guarantor (other than Non-Recourse Indebtedness) aggregating $10,000,000 or more in aggregate principal amount, resulting in the acceleration of such Indebtedness, or due to the failure to pay such Indebtedness at maturity upon acceleration or otherwise;

(5) any Guarantee with respect to the Senior Notes by Toll Brothers, Inc. or a Guarantor that is a Significant Subsidiary shall for any reason cease to be, or be asserted in writing by Toll Brothers, Inc. or such Guarantor or Toll Brothers Finance, as applicable, not to be, in full force and effect and enforceable in accordance with its terms (other than by reason of the termination of the Indenture or the release or discharge of any such Guarantee in accordance with the terms of the Indenture); provided, however, that if Toll Brothers, Inc. or such Guarantor or Toll Brothers Finance, as applicable, asserts in writing that such Guarantee is not in full force and effect and enforceable in accordance with its terms, such assertion shall not constitute an Event of Default for purposes of this paragraph if (A) such written assertion is accompanied by an opinion of counsel of each of Toll Brothers Finance, Toll Brothers, Inc. and such Guarantor to the effect that, as a matter of law, the defect or defects rendering such Guarantee unenforceable can be remedied within 10 days of the date of such assertion, (B) each of Toll Brothers Finance and Toll Brothers, Inc. delivers an officers’ certificate to the effect that Toll Brothers, Inc., such Guarantor or Toll Brothers Finance, as applicable, represents that such defect or defects shall be so remedied within such 10-day period, and (C) such defect or defects are in fact so remedied within such 10-day period; and

(6) certain events of bankruptcy, insolvency or reorganization involving us, Toll Brothers, Inc. or any Significant Subsidiary.

Toll Brothers Finance may cure any Event of Default that relates exclusively to a Guarantor other than Toll Brothers, Inc. to the extent such Guarantor is released from its Guarantee to the extent permitted by the provisions of the Indenture.

The Indenture provides that if an Event of Default (other than an Event of Default described in clause (6) above) shall have occurred and be continuing, either the Trustee by notice to Toll Brothers Finance and Toll Brothers, Inc., or the holders of at least 25% in aggregate principal amount of Senior Notes then outstanding by notice to Toll Brothers Finance, Toll Brothers, Inc. and the Trustee, may declare the principal amount of all the Senior Notes and interest, if any, accrued thereon to be due and payable immediately. If an Event of Default with respect to Toll Brothers Finance, Toll Brothers, Inc. or any Significant Subsidiary specified in clause (6) above occurs, all amounts due and payable on the Senior Notes will become and be immediately due and payable without any declaration, notice or other act on the part of the Trustee, Toll Brothers Finance, Toll Brothers, Inc. or any holder. Holders of a majority in principal amount of the

then outstanding Senior Notes may rescind an acceleration with respect to the Senior Notes and its consequence (except an acceleration due to nonpayment of principal or interest on the Senior Notes) if the rescission would not conflict with any judgment or decree and if all past Events of Default have been cured or waived.

No such rescission shall extend to or shall affect any subsequent Event of Default, or shall impair any right or power consequent thereon.

The Trustee, subject to the duty of the Trustee during default to act with the required standard of care, is entitled to be indemnified by the holders of the Senior Notes before proceeding to exercise any right or power under the Indenture at the request of the holders of the Senior Notes. The Indenture also provides that the holders of a majority in principal amount of the outstanding Senior Notes may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee.

No holder of Senior Notes has any right to institute any proceeding with respect to the Indenture or pursue any remedy thereunder, unless: (1) the holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Senior Notes, (2) the holders of at least 25% in aggregate principal amount of the outstanding Senior Notes shall have made written request, and offered indemnity satisfactory to the Trustee against any loss, liability or expense to the Trustee to pursue the remedy, (3) the Trustee shall have failed to comply with the request for 60 days after its receipt of such notice and offer of indemnity and (4) no written request inconsistent with such written request has been given to the Trustee during the 60-day period by the holders of a majority in aggregate principal amount of the outstanding Senior Notes under the Indenture. However, any right of a holder of Senior Notes to receive payment of the principal of and any interest on the Senior Notes on or after the dates expressed in the Senior Notes or to bring suit for the enforcement of any such payment on or after such dates shall be absolute and unconditional and shall not be impaired or affected without the consent of such holder.

The Indenture contains a covenant that Toll Brothers Finance and Toll Brothers, Inc. each will file with the Trustee within 120 days after the end of their respective fiscal years, a certificate as to the absence of any Default or specifying any Default that exists.

Modification and Waiver

Toll Brothers Finance and the Trustee, with the written consent of the holders of at least a majority of the principal amount of the outstanding Senior Notes affected by the amendment, may execute supplemental indentures adding any provisions to or changing or eliminating any of the provisions of the Indenture or modifying the rights of the holders of the Senior Notes, except that no such supplemental indenture may, without the consent of the holder of each outstanding Senior Note affected by the supplemental indenture, among other things:

(1) change the final maturity of the Senior Notes, or reduce the rate or extend the time of payment of interest on the Senior Notes, or reduce the principal amount of the Senior Notes, or impair the right to institute suit for payment of the Senior Notes;

(2) reduce the percentage of Senior Notes, the consent of the holders of which is required for any such supplemental indenture, for any waiver of compliance with certain provisions of the Indenture or certain Defaults under the Indenture and their consequences provided in the Indenture or any other covenant or provision;

(3) modify any of the provisions regarding the modification of the Indenture, waivers of past Defaults or Events of Default in the payment of principal of, premium if any, or interest on any of the Senior Notes and waivers of certain covenants, except to increase any percentage or to provide that certain other provisions of the Indenture cannot be modified or waived without the consent of the holder of each outstanding Senior Notes affected thereby;

(4) alter the provisions (including related definitions) with respect to redemption of Senior Notes or Toll Brothers Finance’s duty to offer to purchase or redeem such Senior Notes pursuant to the resolutions authorizing the Senior Notes or the Indenture;

(5) modify the ranking or priority of the Senior Notes or the related Guarantees in a manner adverse to the holders of Senior Notes; or

(6) make any Senior Note payable at a place or in money other than that stated in the Senior Note.

The holders of a majority in principal amount of the outstanding Senior Notes may, on behalf of the holders of all Senior Notes, waive any past Default under the Indenture relating to the Senior Notes without notice to any holder. However, without the consent of the holders of the Senior Notes affected, no amendment, supplement or waiver, including any waiver of past Defaults as permitted in the Indenture, will effect any of the actions contemplated by the immediately preceding clauses (1) through (6). Each series of debt securities issued under the Indenture will vote as a separate class.

Neither Toll Brothers Finance’s Board of Directors nor the Board of Directors of any Guarantor has the power to waive any of the covenants of the Indenture including those relating to consolidation, merger or sale of assets.

Toll Brothers Finance and the Trustee may modify or amend provisions of the Indenture, the Guarantees or the Senior Notes without notice to or the consent of any holder for any of the following purposes:

(1) to evidence the succession of another person to Toll Brothers Finance or any Guarantor under the Indenture, the Guarantees or the Senior Notes, respectively;

(2) to add to Toll Brothers Finance’s covenants or the covenants of any Guarantor for the benefit of the holders of the Senior Notes or to surrender any right or power conferred upon Toll Brothers Finance or such Guarantor by the Indenture;

(3) to add Events of Default for the benefit of the holders of the Senior Notes;

(4) to change or eliminate any provisions of the Indenture, provided that any such change or elimination shall become effective only when there are no outstanding Senior Notes;

(5) to secure any Senior Notes or Guarantees under the Indenture;

(6) to establish the form or terms of the senior notes or Guarantees of any new series;

(7) to add Guarantors;

(8) to provide for the acceptance of appointment by a successor Trustee or facilitate the administration of the trusts under the Indenture by more than one Trustee;

(9) to close the Indenture to authentication and delivery of additional series of senior notes;

(10) to supplement any of the provisions of the Indenture to the extent necessary to permit or facilitate defeasance and discharge of the Senior Notes, provided that such action shall not adversely affect the rights of the holders of the Senior Notes;

(11) to remove a Guarantor with respect to any Senior Notes which, in accordance with the terms of the Indenture, ceases to be liable in respect of its Guarantee;

(12) to cure any ambiguity, omission, defect or inconsistency in the Indenture, provided that such action does not adversely affect the interests of holders of the Senior Notes;

(13) to provide that specific provisions of the Indenture will not apply to a series not previously issued under the Indenture;

(14) to provide for uncertificated Senior Notes in addition to or in place of certificated Senior Notes; and

(15) to make any other change that does not adversely affect the interests of holders of the Senior Notes.

Defeasance Provisions

Defeasance and Discharge. The Indenture provides that Toll Brothers Finance will be discharged from any and all obligations with respect to the outstanding Senior Notes (except for certain obligations to register the transfer or exchange of the Senior Notes, replace stolen, lost, destroyed or mutilated Senior Notes, maintain offices or agencies and hold moneys for payment in trust) upon the deposit with the Trustee, in trust, of money in U.S. Dollars, U.S. government obligations or a combination thereof which through the payment of interest and principal thereof in accordance with their terms will provide money in an amount sufficient to pay the principal of and interest on, and any mandatory sinking fund payments with respect to, the outstanding Senior Notes on the stated maturity date of the payments in accordance with the terms of the Indenture and the Senior Notes. This type of discharge may only occur if Toll Brothers Finance deliver to the Trustee an opinion of counsel to the effect that there has been a change in applicable federal income tax law or Toll Brothers Finance have received from, or there has been published by, the United States Internal Revenue Service a ruling to the effect that the holders of the Senior Notes will not recognize income, gain or loss for federal income tax purposes as a result of that discharge and will be subject to federal income tax on the same amount, in the same manner and at the same times as would have been the case if the discharge had not occurred. In order to be discharged the deposit of cash in U.S. Dollars and/or U.S. government obligations will not result in a Default under the Indenture, or constitute a default under any material instrument to which Toll Brothers Finance, Toll Brothers, Inc. or any of the Subsidiaries is a party or by which they or any of their property are bound. In addition, this type of discharge may only occur so long as no Event of Default or event which, with notice or lapse of time, would become an Event of Default with respect to the Senior Notes has occurred and is continuing on the date cash in U.S. Dollars and/or U.S. government obligations are deposited in trust and other conditions specified in the Indenture are satisfied. The term “government obligations” means securities of the government which issued the currency in which the Senior Notes are denominated or in which interest is payable or of government agencies backed by the full faith and credit of that government.

Defeasance of Certain Covenants. The Indenture also provides that Toll Brothers Finance may omit to comply with certain covenants described above under “Certain Covenants” and “Consolidation, Merger and Sale of Assets” with respect to the Senior Notes if Toll Brothers Finance comply with the following conditions and the Senior Notes shall thereafter be deemed not “outstanding” for the purpose of any direction, waiver, consent or declaration or act of the holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes under the Indenture. In order to exercise this option, Toll Brothers Finance will be required to deposit with the Trustee money in U.S. Dollars, U.S. government obligations or a combination thereof which through the payment of interest and principal thereof in accordance with their terms will provide money in an amount sufficient to pay the principal of (and premium, if any) and interest on the outstanding Senior Notes on the stated maturity date of the payments in accordance with the terms of the Indenture and the Senior Notes. In order to be discharged, the deposit of cash and/or government obligations must not result in a Default under the Indenture, or constitute a default under any material instrument to which Toll Brothers Finance, Toll Brothers, Inc. or any of the Subsidiaries is a party or by which they or any of their property are bound. In addition, this type of discharge may only occur so long as no Event of Default or event which, with notice or lapse of time, would become an Event of Default with respect to the Senior Notes has occurred and is continuing on the date cash and/or government obligations are deposited in trust and other conditions specified in the Indenture are satisfied. Toll Brothers Finance will also be required to deliver to the Trustee an opinion of counsel to the effect that the deposit and related covenant defeasance will not cause the holders of the Senior Notes to recognize income, gain or loss for federal income tax purposes and that those holders will be subject to federal income tax on the same amount, in the same manner and at the same times as would have been the case if the deposit and covenant defeasance had not occurred, and to satisfy other conditions specified in the Indenture.

Covenant Defeasance and Events of Default. In the event Toll Brothers Finance exercise its option to effect covenant defeasance with respect to the Senior Notes and the Senior Notes are declared due and payable because of the occurrence of any Event of Default, the amount of money and government obligations on deposit with the Trustee will be sufficient to pay amounts due on the senior notes of that series at the time of their stated maturity dates but may not be sufficient to

pay amounts due on the Senior Notes at the time of the acceleration resulting from such Event of Default. However, Toll Brothers Finance will remain liable for such payments.

Governing Law

The Indenture, the Senior Notes and the Guarantees are governed by the laws of the State of New York.

Regarding the Trustee

The Bank of New York Mellon is the trustee under the Indenture pursuant to which the Senior Notes were issued and acts as indenture trustee for numerous corporate securities issuances, including for other series of debt securities of which Toll Brothers Finance is the issuer.

Global Notes and Book-Entry System

The Senior Notes were issued in the form of one or more registered notes in global form, without interest coupons. Such global notes were deposited on the issue date either with DTC and registered in the name of Cede & Co., as nominee of DTC, or remained in the custody of the Trustee under the Indenture pursuant to the FAST Balance Certificate Agreement between DTC and the Trustee. Beneficial interests in the global notes may not be exchanged for certificated notes except in the circumstances described below. All interests in global notes may be subject to the procedures and requirements of DTC.

The Indenture provides that, if the Depository notifies Toll Brothers Finance that it is unwilling or unable to continue as depository for the global notes or if at any time the Depository ceases to be a clearing agency registered under the Exchange Act and Toll Brothers Finance do not appoint a successor depository within 90 days, or if there shall have occurred and be continuing an Event of Default or an event which, with the giving of notice or lapse of time, or both, would constitute an Event of Default with respect to the Senior Notes, then Toll Brothers Finance will issue certificated notes in exchange for the global note. In addition, Toll Brothers Finance may at any time and in its sole discretion determine not to have the Senior Notes represented by a global note and, in such event, will issue certificated notes in exchange for the global note. In any such instance, an owner of a beneficial interest in a global note will be entitled to physical delivery of certificated notes equal in principal amount to its beneficial interest and to have the certificated notes registered in its name. Toll Brothers Finance expect that instructions for registering the certificated notes would be based upon directions received from the Depository with respect to ownership of the beneficial interests in a global note.

EX-10.28

Exhibit 10.28

TOLL BROTHERS, INC.

2019 OMNIBUS INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AWARD

THIS NON-QUALIFIED STOCK OPTION AWARD (the “Agreement”) is made as of [_____] (the “Effective Date”) by TOLL BROTHERS, INC., a Delaware corporation (the “Company”) under the Toll Brothers, Inc. 2019 Omnibus Incentive Plan (the “Plan”), to [_____] (the “Optionee”). All capitalized terms contained in this Agreement shall have the meaning set forth in the Plan unless otherwise defined herein.

WITNESSETH :

1.    Grant. As of the Effective Date, the Company granted to the Optionee an option (the “Option”) to purchase on the terms and conditions hereinafter set forth all or any part of an aggregate of [_____]shares of the Company’s Common Stock, par value $0.01 per share, (the “Option Shares”), at the purchase price of $[_____] per share (the “Exercise Price”). Subject to Paragraph 2 below, the Optionee shall have the cumulative right to exercise the Option, and the Option is only exercisable, with respect to [_____]% of the Option Shares on or after each of the first four anniversary dates of the Effective Date.

The Committee may, in its sole discretion, accelerate the date on which the Optionee may purchase Option Shares.

2.    Term. (a) The Option granted hereunder shall expire in all events at 5:00 p.m. (local Philadelphia, Pennsylvania time) on [_____], unless sooner terminated as provided below.

(b)Retirement. If, at a time when the Optionee could not have been terminated for Cause, the Optionee voluntarily terminates his or her employment with the Company and its Affiliates on or after the attainment of either (i) age 58 and following the completion of at least ten years of service to the Company or any of its Affiliates or (ii) age 62 following the completion of at least five years of service to the Company or any of its Affiliates (“Retirement”), then the Option shall continue to vest pursuant to the vesting schedule set forth in Paragraph 1 of this Agreement and shall continue to be exercisable as set forth in Paragraph 2(a).

(c)Disability or Death. If, at a time when the Optionee could not have been terminated for Cause, the Optionee terminates his or her employment with the Company and its Affiliates due to Optionee’s death or Disability, then the Option shall immediately become exercisable and shall continue to be exercisable as set forth in Paragraph 2(a).

(d)Change in Control. In the event that the Optionee’s employment with the Company and its Affiliates is terminated under circumstances that would meet the definition of a “Change in Control Covered Termination” under the Company’s Executive Severance Plan in effect on the Date of Grant (regardless of whether Optionee is eligible for benefits under the Executive Severance Plan), then the Option shall immediately become exercisable and shall continue to be exercisable as set forth in Paragraph 2(a).

(e)Termination for Cause. The Option shall immediately terminate upon termination of the Optionee’s employment with the Company and its Affiliates if the Optionee is terminated from employment and the Committee (or, with respect to any Optionee who is not an “officer” as defined for purposes of Section 16 of the Exchange Act, as amended, its designee) determines that the Optionee was dismissed for Cause. In addition to the immediate termination of the Option, if the Optionee is determined to have been dismissed for Cause, the Optionee shall automatically forfeit all Option Shares that the Company has not yet delivered upon refund by the Company of the Exercise Price for such Option Shares.

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(f)Voluntary Termination or Dismissal Without Cause. Except as otherwise set forth in this Paragraph 2, the Option shall terminate upon the earlier of the termination date set forth in Paragraph 2(a) and 90 days after the Optionee’s employment with the Company and its Affiliates is terminated by reason of (i) Optionee’s voluntary termination or (ii) dismissal without Cause. During such 90-day period the Optionee may purchase any remaining Option Shares which could have been purchased on the date Optionee’s employment terminated but may not purchase any Option Shares which would otherwise first become purchasable during such 90-day period.

3.    Blackout Periods. The Committee reserves the right to suspend or limit the Optionee’s rights to exercise and sell shares acquired through the exercise of options to comply with the Company’s Insider Trading Policy, any applicable law, or at any other times that it deems appropriate.

4.    General Rules. To the extent otherwise exercisable, this Option may be exercised in whole or in part except that this Option may in no event be exercised (i) with respect to fractional shares or (ii) after the expiration of the Option term for any reason under Paragraph 2 hereof.

5.    Transfers.     Except as otherwise provided herein or in any separate provisions applicable to this Option, the Option is transferable by the Optionee only by will or pursuant to the laws of descent and distribution in the event of the Optionee’s death, in which event the Option may be exercised by the heirs or legal representatives of the Optionee. Notwithstanding the foregoing, a Non-qualified Stock Option may be transferred pursuant to the terms of a “qualified domestic relations order,” within the meaning of Sections 401(a)(13) and 414(p) of the Code or within the meaning of Title I of the Employee Retirement Income Security Act of 1974, as amended. Any attempt at assignment, transfer, pledge or disposition of the Option contrary to the provisions hereof or the levy of any execution, attachment or similar process upon the Option shall be null and void and without effect. Any exercise of the Option by a person other than the Optionee shall be accompanied by appropriate proofs of the right of such person to exercise the Option.

6.    Method of Exercise and Payment.

(a)    Method of Exercise. The Option may be exercised by written notice to the Company specifying the number of Option Shares to be purchased or by any other means permitted by the Committee. The notice shall be accompanied by payment of the aggregate Exercise Price of the Option Shares being purchased. Such exercise shall be effective upon the actual receipt by the Company of such notice and payment. For these purposes, the Optionee shall be deemed to have made the payment required for exercise of the Option at such time as it is determined that satisfactory arrangements have been made to ensure payment of all amounts as are required to be paid by Optionee in connection with the exercise of the Option.

(b)    Medium of Payment. An Optionee may pay for Option Shares, and the amount of any tax withholding required under Paragraph 6(c) below, (i) in cash, (ii) by certified check payable to the order of the Company (iii) by means of arranging through a broker designated by the Company to have the broker remit sufficient proceeds from the sale of such shares, (iv) by means of a net issuance (as described below), (v) by a combination of the foregoing, or (vi) by such other method as the Committee may determine to be appropriate from time to time.

The Optionee may arrange for exercise of an Option and payment of the Exercise Price by means of a net issuance of shares as described below, provided, however, that exercise by means of a net issuance shall be permitted only as follows: (x) if the Optionee is an officer (as defined for purposes of Section 16 of the Securities Exchange Act of 1934, as amended) at the time of exercise, then a net issuance must be approved in advance by the Committee, and (y) if the Optionee is not an officer (as defined for purposes of Section 16 of the Securities Exchange Act of 1934, as amended) at the time of exercise, then a net issuance must be approved in advance by the Committee or, if and to the extent the Committee so determines, the Company’s General Counsel or other officer of the Company. If a net issuance of shares is so approved and the Optionee chooses to exercise in that manner, the exercise of the Option shall be treated as follows: Upon notice of exercise, the Optionee shall be deemed, as of the date of exercise, to have received all of the shares of Common Stock subject to the Option (or such portion of such shares as corresponds to the portion of the Option being exercised), and shall simultaneously be deemed to have

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delivered back to the Company that number of such shares as have a fair market value (determined as of the date of exercise) equal to the Exercise Price required to be paid on exercise of the Option (or portion being exercised) and any additional amounts required to be paid by the Optionee in connection with the exercise of the Option.

(c)    Withholding. In addition to payment of the Exercise Price for the Option Shares being purchased, as a condition to the issuance of Option Shares and the delivery of any such Option Shares, the Optionee shall be required to remit to the Company an amount sufficient to satisfy any federal, state and/or local tax withholding requirements arising in connection with the exercise of the Option. If the Company for any reason does not require the Optionee to make a payment sufficient to satisfy such withholding requirements, any tax withholding payments made by the Company or any Affiliate to any federal, state or local tax authority with respect to the exercise of the Option shall constitute a personal obligation of the Optionee to the Company, payable upon demand or, at the option of the Company, by deduction from future compensation payable to the Optionee. In addition, at the request of the Optionee, with consent of the Committee (which may be unreasonably withheld), or to the extent it is determined by the Committee to be necessary or appropriate in connection with any applicable federal, state or local tax withholding obligations, the Company may withhold a portion of the Option Shares that would otherwise be issuable to the Optionee on the exercise of the Option. In such event, the portion of the withholding obligation thus satisfied shall be equal to the fair market value of the Option Shares so withheld determined as of the date the Option is exercised.

7.    Adjustments on Changes in Common Stock. The Option is granted subject to the provisions of Section 11 of the Plan.

8.    Legal Requirements. If the listing, registration or qualification of the Option Shares upon any securities exchange or under any federal or state law, or the consent or approval of any governmental regulatory body is necessary as a condition of or in connection with the purchase of such Option Shares, the Company shall not be obligated to issue or deliver the Option Shares as to which the Option has been exercised unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained. If registration is considered unnecessary by the Company or its counsel, the Company may cause a legend to be placed on the Option Shares being issued calling attention to the fact that they have been acquired for investment and have not been registered. The Committee may from time to time impose any other conditions on the Option Shares it deems necessary or advisable to ensure that Option Shares are issued and resold in compliance with the Securities Act of 1933, as amended.

9.    Administration. The Option has been granted pursuant to, and is subject to the terms and provisions of, the Plan. All questions of interpretation and application of the Plan and the Option shall be determined by the Committee, or its designee, and such determination shall be final, binding and conclusive. The Option shall not be treated as an incentive stock option (as such term is defined in section 422(b) of the Code) for federal income tax purposes.

10.    Notices. Any notice to the Company under this Agreement shall be made in care of the Committee to the office of the General Counsel, at the Company’s main offices. Any notice to be given to the Optionee shall be addressed to the Optionee at the address then appearing on the personnel records of the Company or the Affiliate of the Company by which he is employed, or at such other address as either party hereafter may designate in writing to the other. The Company may provide any notice hereunder through electronic means, including through the Company’s equity plan administrator.

11.    Employment. Nothing herein contained shall affect the right of the Company or any Affiliate to terminate the Optionee’s employment, services, responsibilities, duties, or authority to represent the Company or any Affiliate at any time for any reason whatsoever.

12.    Certain Covenants. In order to induce the Company to enter in this Agreement and grant the Option, Optionee acknowledges and agrees as follows:

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(a)     Confidentiality. At all times during the term of Optionee’s employment with the Company or its Affiliates, and at all times thereafter, Optionee shall hold in confidence, and not use, except for the benefit of the Company and its Affiliates, or disclose to any person, firm, corporation, or other entity without written authorization of the Company, any Confidential Information (as defined below) that Optionee obtains or creates. Optionee further agrees not to make copies of such Confidential Information except as authorized by the Company. “Confidential Information” means information that the Company or its Affiliates has or will develop, acquire, create, compile, discover, or own, that has value in or to the business of the Company or its Affiliates that is not generally known and that the Company wishes to maintain as confidential. Optionee understands that Confidential Information includes, but is not limited to, any and all non-public information that relates to the actual or anticipated business and/or products, research, or development of the Company or its Affiliates, or to the Company’s or its Affiliate’s technical data, trade secrets, or know-how, including, but not limited to, research, product plans, or other information regarding the Company’s or its Affiliate’s products or services and markets, customer lists, and customers (including, but not limited to, customers of the Company or its Affiliates on whom Optionee called or with whom Optionee may become acquainted during the term of his or her employment), software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, and other business information disclosed by the Company or its Affiliates either directly or indirectly in writing, orally, or by drawings or inspection of premises, parts, equipment, or other Company property. Notwithstanding the foregoing, Confidential Information shall not include (i) any of the foregoing items that have become publicly and widely known through no unauthorized disclosure by Optionee or others who were under confidentiality obligations as to the item or items involved or (ii) any information that Optionee is required to disclose to, or by, any U.S. federal, state or local governmental or law enforcement branch, agency or entity (collectively, a “Governmental Entity”); provided, however, that in such event Optionee will give the Company prompt written notice thereof so that the Company or its Affiliate may seek an appropriate protective order and/or waive in writing compliance with the confidentiality provisions in this Agreement.

(b)    Permitted Disclosure. Nothing in this Agreement shall prohibit or impede Optionee from communicating, cooperating or filing a complaint with any Governmental Entity with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise making disclosures to any Governmental Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation, provided that in each case such communications and disclosures are consistent with applicable law. Optionee understands that Optionee does not need the prior authorization of (or to give notice to) the Company regarding any such communication or disclosure. Optionee further understands and acknowledge that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (i) in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Optionee understands and acknowledges further that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. Notwithstanding the foregoing, under no circumstance will Optionee be authorized to disclose any information covered by attorney-client privilege or attorney work product of the Company or any of its Affiliates without prior written consent of the Company’s General Counsel or other officer designated by the Company.

(c)    Non-Disparagement. Optionee agrees that during the term of Optionee’s employment with the Company or its Affiliates, and at all times thereafter, Optionee will not make any disparaging or defamatory comments regarding the Company or any of its Affiliates or their respective current or former directors, officers, or employees in any respect or make any comments concerning any aspect of Optionee’s relationship with the Company or any of its Affiliates or any conduct or events which precipitated any termination of Optionee’s employment from the Company or any of its Affiliates. However, Optionee’s obligations under this subparagraph (c) shall not apply to (i) disclosures required by applicable law, regulation, or order of a court or governmental agency or (ii) disclosures or communications described in Section 12(b) of this Agreement or otherwise protected from restriction under applicable law.

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(d)    Non-Solicitation. Optionee agrees that during the term of Optionee’s employment with the Company and its Affiliates, and for the one-year period thereafter, Optionee shall not, directly or indirectly for Optionee’s own account or for the account of any other individual or entity, (A) encourage, solicit, or induce, or in any manner attempt to encourage, solicit, or induce, any person employed by, or providing consulting services to, the Company or any of its Affiliates to terminate such person’s employment or services (or in the case of a consultant, materially reducing such services) with the Company or any of its Affiliates, (B) hire any individual who was employed by the Company or any of its Affiliates within the six (6)-month period prior to the date of such hiring, or (C) encourage, solicit, or induce, or in any manner attempt to encourage, solicit, or induce, any current or prospective client, customer, licensee, supplier, or other business relation of the Company or any of its Affiliates, or any such relation that was a client, customer, licensee or other business relation within the prior six (6)-month period, in each case, with whom Optionee transacted business or whose identity became known to Optionee in connection with Optionee’s relationship with, or employment by, the Company or any of its Affiliates, to cease doing business with or reduce the amount of business conducted with the Company or its Affiliates, or in any way interfere with the relationship between any such relation and the Company or any of its Affiliates.

13.    Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws’ provisions thereof. OPTIONEE IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION, OR OTHER PROCEEDING INSTITUTED BY OR AGAINST OPTIONEE IN RESPECT OF OPTIONEE’S RIGHT OR OBLIGATIONS HEREUNDER.

14.    Acceptance of Terms and Conditions. By physically or electronically acknowledging this Award, Optionee agrees to and acknowledges the following:

(a)    Optionee acknowledges receipt of a copy of the Plan prospectus, included in which is a summary of the terms of the Plan. The summary contained therein is qualified in its entirety by reference to the terms of the Plan, copies of which are available with the Company’s public filings with the United States Securities and Exchange Commission at www.sec.gov, or by oral or written request directed to the Company. Optionee represents that Optionee is familiar with the terms and provisions of the Plan, and hereby accepts the Option, subject to all of the terms and provisions thereof. Optionee agrees to hereby accept as binding, conclusive and final all decisions or interpretations of the Committee, or its designee, upon any questions arising under the Plan or this Agreement.

(b)    Optionee understands and agrees that this Agreement and the Plan constitute a binding agreement between Optionee and the Company and represents the entire understanding between Optionee and the Company regarding the Option, and that any prior agreements, commitments or negotiations concerning the Option are replaced and superseded;

(c)    Optionee acknowledge the authority of the Committee and its designees to administer and interpret the terms and conditions set forth in this Agreement and the Plan; and

(d)    Optionee acknowledges that this Agreement contains restrictions that may impact your Optionee’s ability to take certain actions during and after Optionee’s employment with the Company and that any breach of the covenants contained in this Agreement, including but not limited to those contained in Section 13, may constitute Detrimental Activity as such term is defined in the Plan.

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EX-10.29

Exhibit 10.29

TOLL BROTHERS, INC.
2019 OMNIBUS INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD

This Restricted Stock Unit Award (this “Agreement”) documents the grant of [_____] Restricted Stock Units (the “RSUs”) by Toll Brothers, Inc. (the “Company”) pursuant to the terms of the Toll Brothers, Inc. 2019 Omnibus Incentive Plan (the “Plan”), on this [_____] (the “Date of Grant”) to [_______] (the “Grantee.”) Subject to the terms of the Plan and this Agreement, each RSU represents the right to receive one share of Common Stock at the date specified herein (each a “Share”).

1.Definitions. All capitalized terms contained in this Agreement shall have the meaning set forth in the Plan unless otherwise defined herein.

2.Non-Transferability of the RSUs. Grantee shall not be permitted to sell, transfer, pledge, assign or otherwise dispose of the RSUs at any time. Notwithstanding the foregoing, in the event of Grantee’s death, the RSUs may be transferred by will or by the laws of descent and distribution.

3.Vesting.

(a)     Vesting Schedule / Restricted Period. The RSUs shall, except to the extent accelerated vesting is provided for under the terms of the Plan or as set forth in this Agreement, become [__]% vested on [_____].

(b)     Retirement. If, at a time when the Grantee could not have been terminated for Cause, the Grantee voluntarily terminates his or her employment with the Company and its Affiliates on or after the attainment of either (i) age 58 and following the completion of at least ten years of service to the Company or any of its Affiliates or (ii) age 62 following the completion of at least five years of service to the Company or any of its Affiliates (“Retirement”), then the RSU shall continue to vest pursuant to the vesting schedule set forth in Paragraph 3(a) as though the Grantee had not voluntarily terminated employment.

(c)     Death or Disability. If, at a time when the Grantee could not have been terminated for Cause, the Grantee terminates his or her employment with the Company and its Affiliates due to Grantee’s death or Disability, then all unvested RSUs shall immediately vest.

(d)     Change in Control. In the event that the Grantee’s employment with the Company and its Affiliates is terminated under circumstances that would meet the definition of a “Change in Control Covered Termination” under the Company’s Executive Severance Plan in effect on the Date of Grant (regardless of whether Grantee is eligible for benefits under the Executive Severance Plan), then all unvested RSUs shall immediately vest.

(e)     Other Termination. If the Grantee’s employment terminates for any reason not described above, then any RSUs (and all deferred dividends paid or credited thereon) that have not vested as of the date of such termination shall automatically be forfeited and returned to the Company.

4.Dividends. Grantee shall not be entitled to any cash, securities or property that would have been paid or distributed as dividends with respect to the Shares subject to this Agreement prior to the date the Shares are delivered to Grantee; provided, however, that the Company shall keep a hypothetical account in which any such items shall be recorded, and shall pay to Grantee the amount of such dividends (in cash or in kind as determined by the Company) on the same date that the Shares to which such payments or distributions relate are required to be delivered under this Agreement.

5.Delivery of Shares.

(a)     Full Vesting. Shares subject to the RSUs that vest (together with any payment due pursuant to Paragraph 4 in respect of such Shares) shall be delivered to Grantee (or the person to whom ownership rights may have passed by will or the laws of descent and distribution), on or as soon as administratively practicable after, the first to occur of the following, in all cases subject to paragraph (c) below:

(i)     For RSUs that have vested pursuant to Paragraph 3(a) “Vesting Schedule / Restricted Period” and Paragraph 3(b) “Retirement,” [____].

(ii)     For RSUs that have vested pursuant to Paragraph 3(c) “Death or Disability,” the date of Grantee’s termination of employment due to death or Disability.

(iii)     For RSUs that have vested pursuant to Paragraph 3(d) “Change in Control,” the date the Grantee’s termination would meet the definition of a Change in Control Covered Termination if the Grantee were an eligible Participant under the Executive Severance Plan.

(b)     Partial Vesting. If RSUs have vested pursuant to Paragraph 3(a) and Grantee’s employment with the Company or any of its Affiliates terminates for any reason (other than those set forth in Paragraphs 3(b) through 3(d) and other than for Cause) before the date set forth in Paragraph 5(a)(i) above, then, subject to paragraph (c) below, Shares subject to any RSUs that have vested on or before the date on which the Grantee’s employment terminates (together with any payment due pursuant to Paragraph 4 in respect of such Shares) shall be delivered to Grantee on or as soon as administratively practicable after, 30 days following Grantee’s last day of employment with the Company. Any RSUs that have not vested on or before the date on which such Grantee’s employment terminates shall be forfeited on such date, and no Shares shall be delivered nor payment made in respect of such RSUs.

(c)     Certain Limitations. Notwithstanding the foregoing provisions of this Paragraph 5, delivery of Shares by reason of Grantee’s termination of employment shall be delayed until the six (6) month anniversary of the date of Grantee’s termination of employment to the extent necessary to comply with Code Section 409A(a)(B)(i), and the determination of whether or not there has been a termination of Grantee’s employment with the Company shall be made by the Committee consistent with the definition of “separation from service” (as that phrase is used for purposes of Code Section 409A, and as set forth in Treasury Regulation Section 1.409A-1(h)).

The Company shall, without payment from Grantee (or the person to whom ownership rights may have passed by will or the laws of descent and distribution) for the Shares, other than any required withholding taxes, as provided for in Paragraph 8 below, (i) deliver to Grantee (or such other person) a certificate for the Shares being delivered or (ii) deliver electronically to an account designated by Grantee (or such other person) the Shares being delivered, in either case without any legend or restrictions, except for such restrictions as may be imposed by the Committee, in its sole judgment, consistent with the terms of the Plan. The Company may condition delivery of the Shares upon the prior receipt from Grantee (or such other person) of any undertakings which it may determine are required to assure that the Shares being delivered are being issued in compliance with federal and state securities laws. The right to any fractional Shares shall be satisfied in cash, measured by the product of the fractional amount times the fair market value of a Share on the date the Share would otherwise have been delivered, as determined by the Committee.

1.Termination for Cause. All of the RSUs and Grantee’s rights to receive Shares, whether or not vested, and any payment hereunder shall be forfeited if Grantee is terminated from employment and the Committee (or, with respect to any Optionee who is not an “officer” as defined for purposes of Section 16 of the Exchange Act, its designee) determines that the Grantee was dismissed for Cause.

2.

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3.Rights of Grantee. Grantee shall have none of the rights of a shareholder at any time prior to the delivery of the Shares subject to this Agreement, except as expressly set forth in the Plan or herein.

4.Withholding Taxes. Grantee shall be responsible to pay to the Company the amount of withholding taxes as determined by the Company with respect to the date the Shares are delivered. If Grantee does not arrange for payment of the applicable withholding taxes by providing such amount to the Company in cash prior to the date established by the Company as the deadline for such payment, Grantee shall be treated as having elected to relinquish to the Company a portion of the Shares that would otherwise have been transferred to Grantee having a fair market value, based on the closing price of the Common Stock on the New York Stock Exchange on the business day immediately preceding the date of delivery of the Shares, equal to the amount of such applicable withholding taxes, in lieu of paying such amount to the Company in cash. Grantee authorizes the Company to withhold in accordance with applicable law from any compensation payable to him or her any taxes required to be withheld for federal, state or local law in connection with this Agreement.

5.Notices. Any notice to the Company under this Agreement shall be made in care of the Committee to the office of the General Counsel, at the Company’s main offices. Any notice to be given to the Grantee shall be addressed to the Grantee at the address then appearing on the personnel records of the Company or the Affiliate of the Company by which he or she is employed, or at such other address as either party hereafter may designate in writing to the other. The Company may provide any notice hereunder through electronic means, including through the Company’s equity plan administrator.

6.Legal Requirements. If the listing, registration or qualification of Shares deliverable in respect of an RSU upon any securities exchange or under any federal or state law, or the consent or approval of any governmental regulatory body is necessary as a condition of or in connection with the issuance of such Shares, the Company shall not be obligated to issue or deliver such Shares unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained. If registration is considered unnecessary by the Company or its counsel, the Company may cause a legend to be placed on any Shares being issued calling attention to the fact that they have been acquired for investment and have not been registered. The Committee may from time to time impose any other conditions on the Shares it deems necessary or advisable to ensure that Shares are issued and resold in compliance with the Securities Act of 1933, as amended.

7.Grant of RSU Not to Affect Service. The grant of the RSUs shall not confer upon Grantee any right to continue as an employee of the Company or to serve in any other capacity for the Company or any Affiliate.

8.Acceleration. The Committee shall have the authority to accelerate vesting in its own discretion in amounts and under circumstances where the Committee deems it equitable to do so and on conditions reasonably imposed by the Committee.

9.Certain Covenants. In order to induce the Company to enter in this Agreement and grant the RSU, Grantee acknowledges and agrees as follows:

(a) Confidentiality. At all times during the term of Grantee’s employment with the Company or its Affiliates, and at all times thereafter, Grantee shall hold in confidence, and not use, except for the benefit of the Company and its Affiliates, or disclose to any person, firm, corporation, or other entity without written authorization of the Company, any Confidential Information (as defined below) that Grantee obtains or creates. Grantee further agrees not to make copies of such Confidential Information except as authorized by the Company. “Confidential Information” means information that the Company or its Affiliates has or will develop, acquire, create, compile, discover, or own, that has value in or to the business of the Company or its Affiliates that is not generally known and that the Company wishes to maintain as confidential. Grantee understands that Confidential Information includes, but is not limited to, any and all non-public information that relates to the actual or anticipated business and/or products, research, or development of the Company or its Affiliates, or to the Company’s or its Affiliate’s technical

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data, trade secrets, or know-how, including, but not limited to, research, product plans, or other information regarding the Company’s or its Affiliate’s products or services and markets, customer lists, and customers (including, but not limited to, customers of the Company or its Affiliates on whom Grantee called or with whom Grantee may become acquainted during the term of his or her employment), software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, and other business information disclosed by the Company or its Affiliates either directly or indirectly in writing, orally, or by drawings or inspection of premises, parts, equipment, or other Company property. Notwithstanding the foregoing, Confidential Information shall not include (i) any of the foregoing items that have become publicly and widely known through no unauthorized disclosure by Grantee or others who were under confidentiality obligations as to the item or items involved or (ii) any information that Grantee is required to disclose to, or by, any U.S. federal, state or local governmental or law enforcement branch, agency or entity (collectively, a “Governmental Entity”); provided, however, that in such event Grantee will give the Company prompt written notice thereof so that the Company or its Affiliate may seek an appropriate protective order and/or waive in writing compliance with the confidentiality provisions in this Agreement.

(b) Permitted Disclosure. Nothing in this Agreement shall prohibit or impede Grantee from communicating, cooperating or filing a complaint with any Governmental Entity with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise making disclosures to any Governmental Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation, provided that in each case such communications and disclosures are consistent with applicable law. Grantee understands that Grantee does not need the prior authorization of (or to give notice to) the Company regarding any such communication or disclosure. Grantee further understands and acknowledge that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (i) in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Grantee understands and acknowledges further that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. Notwithstanding the foregoing, under no circumstance will Grantee be authorized to disclose any information covered by attorney-client privilege or attorney work product of the Company or any of its Affiliates without prior written consent of the Company’s General Counsel or other officer designated by the Company.

(c) Non-Disparagement. Grantee agrees that during the term of Grantee’s employment with the Company or its Affiliates, and at all times thereafter, Grantee will not make any disparaging or defamatory comments regarding the Company or any of its Affiliates or their respective current or former directors, officers, or employees in any respect or make any comments concerning any aspect of Grantee’s relationship with the Company or any of its Affiliates or any conduct or events which precipitated any termination of Grantee’s employment from the Company or any of its Affiliates. However, Optionee’s obligations under this subparagraph (c) shall not apply to (i) disclosures required by applicable law, regulation, or order of a court or governmental agency or (ii) disclosures or communications described in Section 13(b) of this Agreement or otherwise protected from restriction under applicable law.

(d) Non-Solicitation. Grantee agrees that during the term of Grantee’s employment with the Company and its Affiliates, and for the one-year period thereafter, Grantee shall not, directly or indirectly for Grantee’s own account or for the account of any other individual or entity, (A) encourage, solicit, or induce, or in any manner attempt to encourage, solicit, or induce, any person employed by, or providing consulting services to, the Company or any of its Affiliates to terminate such person’s employment or services (or in the case of a consultant, materially reducing such services) with the Company or any of its Affiliates, (B) hire any individual who was employed by the Company or any of its Affiliates within the six (6)-month period prior to the date of such hiring, or (C) encourage, solicit, or induce, or in any manner attempt to encourage, solicit, or induce, any current or prospective client, customer, licensee, supplier, or other business relation of the Company or any of its Affiliates, or any such relation that was a client, customer, licensee or other business relation within the prior six (6)-month period, in each case, with whom Grantee transacted business or whose identity became known to Grantee in

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connection with Grantee’s relationship with, or employment by, the Company or any of its Affiliates, to cease doing business with or reduce the amount of business conducted with the Company or its Affiliates, or in any way interfere with the relationship between any such relation and the Company or any of its Affiliates.

10.    Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws’ provisions thereof. OPTIONEE IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION, OR OTHER PROCEEDING INSTITUTED BY OR AGAINST OPTIONEE IN RESPECT OF OPTIONEE’S RIGHT OR OBLIGATIONS HEREUNDER.

11.    Acceptance of Terms and Conditions. By physically or electronically acknowledging this Award, Grantee agrees to and acknowledges the following:

(a)     Grantee acknowledges receipt of a copy of the Plan prospectus, included in which is a summary of the terms of the Plan. The summary contained therein is qualified in its entirety by reference to the terms of the Plan, copies of which are available with the Company’s public filings with the United States Securities and Exchange Commission at www.sec.gov, or by oral or written request directed to the Company. Grantee represents that Grantee is familiar with the terms and provisions of the Plan, and hereby accepts the RSUs, subject to all of the terms and provisions thereof. Grantee agrees to hereby accept as binding, conclusive and final all decisions or interpretations of the Committee, or its designee, upon any questions arising under the Plan or this Agreement.

(b)     Grantee understands and agrees that this Agreement and the Plan constitute a binding agreement between Grantee and the Company and represent the entire understanding between Grantee and the Company regarding the Award, and that any prior agreements, commitments or negotiations concerning the Award are replaced and superseded;

(c)     Grantee acknowledges the authority of the Committee, or its designee, to administer and interpret the terms and conditions set forth in this Agreement and the Plan; and

(d)     Grantee acknowledges that this Agreement contains provisions that may impact your ability to take certain actions during and after your employment with the Company, and that any breach of the covenants contained in this Agreement, including but not limited to those contained in Section 13, may constitute Detrimental Activity as such term is defined in the Plan.

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EX-10.30

Exhibit 10.30

TOLL BROTHERS, INC. 2019 OMNIBUS INCENTIVE PLAN

RESTRICTED STOCK UNIT AGREEMENT

PERFORMANCE BASED AWARD

This Restricted Stock Unit Agreement (this “Agreement”) documents the grant of [____]Restricted Stock Units (the “RSUs”) by Toll Brothers, Inc. (the “Company”) pursuant to the terms of the Toll Brothers, Inc. 2019 Omnibus Incentive Plan (the “Plan”), on this [____] (the “Date of Grant”) to [____] (the “Grantee.”) Subject to the terms of the Plan and this Agreement, each RSU represents the right to receive one share of Common Stock at the date specified herein, or such greater or lesser number of shares of Common Stock as provided in Schedule A hereto (the “Shares”).

1.Definitions. All capitalized terms contained in this Agreement shall have the meaning set forth in the Plan unless otherwise defined herein (including Schedule A).

2.Performance-Based Vesting. The RSUs shall, except to the extent accelerated vesting is provided for under the terms of the Plan or as set forth in this Agreement, become vested and Grantee shall be entitled to receipt of the Shares subject to the RSUs only if the performance metrics, if any, described in Paragraph 1 of Schedule A, attached hereto and made a part hereof, are satisfied; and only if Grantee satisfies such continuing service requirements and conditions as are provided in Paragraph 2 of Schedule A.

3.Vesting Upon Death or Disability; Retirement.

(a)     Death or Disability. Notwithstanding any of the provisions in Paragraph 2, the RSUs shall become fully vested in the event the Grantee’s service as an employee of the Company and its Affiliates terminates by reason of the Grantee’s death, or by reason of the Grantee’s Disability, with the RSU vesting based on (i) deemed Target level performance if the termination occurs during the Performance Period or (ii) actual performance during the Performance Period if the termination occurs following the end of the Performance Period.

(b)     Retirement. Notwithstanding any of the provisions in Paragraph 2, in the event the Grantee’s service as an employee of the Company and its Affiliates terminates due to Grantee’s voluntary termination on or after attainment of either (i) age 58 and following the completion of at least ten years of service to the Company or any of its Affiliates or (ii) age 62 following the completion of at least five years of service to the Company or any of its Affiliates (“Retirement”), at any time prior to the end of the Service Vesting Period, the Grantee shall be entitled eligible to receive all of the earned RSUs (based on actual performance over the Performance Period) that Grantee otherwise would have earned had Grantee remain employed through the end of the Service Vesting Period.

4.Vesting Upon Change in Control Covered Termination. Notwithstanding any of the provisions of Paragraph 2, in the event that the Grantee’s employment with the Company and its Affiliates is terminated under circumstances that would meet the definition of a “Change in Control Covered Termination” under the Company’s Executive Severance Plan in effect on the Date of Grant (regardless of whether Grantee is eligible for benefits under the Executive Severance Plan), then the RSU shall become fully vested, with the RSU vesting based on (i) deemed Target level performance if the Change of Control Covered Termination occurs during the Performance Period or (ii) actual performance during the Performance Period if the Change of Control Covered Termination occurs following the end of the Performance Period.

5.Delivery of Shares. Shares subject to RSUs that vest (together with any payments due pursuant to Paragraph 6 in respect of such Shares) shall be delivered to Grantee (or the person to whom ownership rights may have passed by will or the laws of descent and distribution), on or as soon as administratively practicable after the first to occur of the following, in cases subject to Paragraph (d) below:

(a)     For RSUs that have vested pursuant to Paragraphs 2 “Performance-Based Vesting” or 3(b) “Retirement,” the date set forth in Paragraph 2 of Schedule A;

(b)     For RSUs that have vested pursuant to Paragraph 3(a) “Death or Disability,” the date of Grantee’s termination of employment;

(c)     For RSUs that have vested pursuant to Paragraph 4 “Vesting Upon Change in Control Covered Termination,” the date of the Grantee’s Change in Control Covered Termination;

(d)     Delivery of the Shares by reason of Grantee’s termination of employment shall be delayed until the six (6) month anniversary of the date of Grantee’s termination of employment to the extent necessary to comply with Code Section 409A(a)(B)(i), and the determination of whether or not there has been a termination of Grantee’s employment with the Company shall be made by the Committee consistent with the definition of “separation from service” (as that phrase is used for purposes of Code Section 409A, and as set forth in Treasury Regulation Section 1.409A-1(h)).

The Company shall, without payment from Grantee (or the person to whom ownership rights may have passed by will or the laws of descent and distribution) for the Shares, other than any required withholding taxes, as provided in Paragraph 10, below, (i) deliver to Grantee (or such other person) a certificate for the Shares being delivered or (ii) deliver electronically to an account designated by Grantee (or such other person) the Shares being delivered, in either case without any legend or restrictions, except for such restrictions as may be imposed by the Committee, in its sole judgment, consistent with the terms of the Plan. The Company may condition delivery of the Shares upon the prior receipt from Grantee (or such other person) of any undertakings which it may determine are required to assure that the Shares being delivered are being issued in compliance with federal and state securities laws. The right to any fractional Shares shall be satisfied in cash, measured by the product of the fractional amount times the fair market value of a Share on the date the Share would otherwise have been delivered, as determined by the Committee.

6.Dividends. Grantee shall not be entitled to any cash, securities or property that would have been paid or distributed as dividends with respect to the Shares subject to this Agreement prior to the date the Shares are delivered to Grantee; provided, however, that the Company shall keep a hypothetical account in which any such items shall be recorded, and shall pay to Grantee the amount of such dividends (in cash or in kind as determined by the Company) on the same date that the Shares to which such payments or distributions relate are required to be delivered under this Agreement.

7.Forfeiture. All of the RSUs and Grantee’s rights to receive Shares, whether or not vested, and any payment hereunder shall be forfeited if Grantee is terminated from employment and the Committee (or, with respect to any Grantee who is not an “officer” as defined for purposes of Paragraph 16 of the Exchange Act, its designee) determines that the Grantee was dismissed for Cause. If Grantee’s service as an employee of the Company terminates for any reason other than death, Disability, Retirement, a Change in Control Covered Termination or termination for Cause, then upon that termination Grantee shall forfeit all RSUs that have not become vested on or before the date of such termination, and no Shares shall be delivered nor payment made in respect of such RSUs.

8.Non-Transferability of the RSUs. Grantee shall not be permitted to sell, transfer, pledge, assign or otherwise dispose of the RSUs at any time. Notwithstanding the foregoing, in the event of Grantee’s death, the RSUs may be transferred by will or by the laws of descent and distribution.

9.Rights of Grantee. Grantee shall have none of the rights of a shareholder at any time prior to the delivery of the Shares subject to this Agreement, except as expressly set forth in the Plan or herein.

10.Withholding Taxes. Grantee shall be responsible to pay to the Company the amount of withholding taxes as determined by the Company on the date the Shares are delivered. At the Grantee’s option, Grantee shall have the right to relinquish to the Company a portion of the Shares having a fair market value, based on the closing price of the Common Stock on the NYSE on such delivery date, equal to the amount the Grantee would otherwise be required to pay to the Company on such delivery date by reason of applicable withholding taxes, in lieu of paying that amount to the Company in cash. Grantee authorizes the Company to withhold in accordance with applicable law from any compensation payable to him or her any taxes required to be withheld for federal, state or local law in connection with this Agreement.

11.Notices. Any notice to the Company under this Agreement shall be made in care of the Committee to the office of the General Counsel, at the Company’s main offices. Any notice to be given to the Grantee shall be addressed to the Grantee at the address then appearing on the personnel records of the Company or the Affiliate of the Company by which he or she is employed, or at such other address as either party hereafter may designate in

writing to the other. The Company may provide any notice hereunder through electronic means, including through the Company’s equity plan administrator.

12.Legal Requirements. If the listing, registration or qualification of Shares deliverable in respect of an RSU upon any securities exchange or under any federal or state law, or the consent or approval of any governmental regulatory body is necessary as a condition of or in connection with the issuance of such Shares, the Company shall not be obligated to issue or deliver such Shares unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained. If registration is considered unnecessary by the Company or its counsel, the Company may cause a legend to be placed on any Shares being issued calling attention to the fact that they have been acquired for investment and have not been registered. The Committee may from time to time impose any other conditions on the Shares it deems necessary or advisable to ensure that Shares are issued and resold in compliance with the Securities Act of 1933, as amended.

13.Grant of RSU Not to Affect Service. The grant of the RSUs shall not confer upon Grantee any right to continue as an employee of the Company or to serve in any other capacity for the Company or any Affiliate.

14.Acceleration. The Committee shall have the authority to accelerate vesting in its own discretion in amounts and under circumstances where the Committee deems it equitable to do so and on conditions reasonably imposed by the Committee.

15.Certain Covenants. In order to induce the Company to enter in this Agreement and grant the RSU, Grantee acknowledges and agrees as follows:

(a)     Confidentiality. At all times during the term of Grantee’s employment with the Company or its Affiliates, and at all times thereafter, Grantee shall hold in confidence, and not use, except for the benefit of the Company and its Affiliates, or disclose to any person, firm, corporation, or other entity without written authorization of the Company, any Confidential Information (as defined below) that Grantee obtains or creates. Grantee further agrees not to make copies of such Confidential Information except as authorized by the Company. “Confidential Information” means information that the Company or its Affiliates has or will develop, acquire, create, compile, discover, or own, that has value in or to the business of the Company or its Affiliates that is not generally known and that the Company wishes to maintain as confidential. Grantee understands that Confidential Information includes, but is not limited to, any and all non-public information that relates to the actual or anticipated business and/or products, research, or development of the Company or its Affiliates, or to the Company’s or its Affiliate’s technical data, trade secrets, or know-how, including, but not limited to, research, product plans, or other information regarding the Company’s or its Affiliate’s products or services and markets, customer lists, and customers (including, but not limited to, customers of the Company or its Affiliates on whom Grantee called or with whom Grantee may become acquainted during the term of his or her employment), software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, and other business information disclosed by the Company or its Affiliates either directly or indirectly in writing, orally, or by drawings or inspection of premises, parts, equipment, or other Company property. Notwithstanding the foregoing, Confidential Information shall not include (i) any of the foregoing items that have become publicly and widely known through no unauthorized disclosure by Grantee or others who were under confidentiality obligations as to the item or items involved or (ii) any information that Grantee is required to disclose to, or by, any U.S. federal, state or local governmental or law enforcement branch, agency or entity (collectively, a “Governmental Entity”); provided, however, that in such event Grantee will give the Company prompt written notice thereof so that the Company or its Affiliate may seek an appropriate protective order and/or waive in writing compliance with the confidentiality provisions in this Agreement.

(b)     Permitted Disclosure. Nothing in this Agreement shall prohibit or impede Grantee from communicating, cooperating or filing a complaint with any Governmental Entity with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise making disclosures to any Governmental Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation, provided that in each case such communications and disclosures are consistent with applicable law. Grantee understands that Grantee does not need the prior authorization of (or to give notice to) the Company regarding any such communication or disclosure. Grantee further understands and acknowledge that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (i) in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating

a suspected violation of law, or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Grantee understands and acknowledges further that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. Notwithstanding the foregoing, under no circumstance will Grantee be authorized to disclose any information covered by attorney-client privilege or attorney work product of the Company or any of its Affiliates without prior written consent of the Company’s General Counsel or other officer designated by the Company.

(c)     Non-Disparagement. Grantee agrees that during the term of Grantee’s employment with the Company or its Affiliates, and at all times thereafter, Grantee will not make any disparaging or defamatory comments regarding the Company or any of its Affiliates or their respective current or former directors, officers, or employees in any respect or make any comments concerning any aspect of Grantee’s relationship with the Company or any of its Affiliates or any conduct or events which precipitated any termination of Grantee’s employment from the Company or any of its Affiliates. However, Optionee’s obligations under this subparagraph (c) shall not apply to (i) disclosures required by applicable law, regulation, or order of a court or governmental agency or (ii) disclosures or communications described in Paragraph 13(b) of this Agreement or otherwise protected from restriction under applicable law.

(d)     Non-Solicitation. Grantee agrees that during the term of Grantee’s employment with the Company and its Affiliates, and for the one-year period thereafter, Grantee shall not, directly or indirectly for Grantee’s own account or for the account of any other individual or entity, (A) encourage, solicit, or induce, or in any manner attempt to encourage, solicit, or induce, any person employed by, or providing consulting services to, the Company or any of its Affiliates to terminate such person’s employment or services (or in the case of a consultant, materially reducing such services) with the Company or any of its Affiliates, (B) hire any individual who was employed by the Company or any of its Affiliates within the six (6)-month period prior to the date of such hiring, or (C) encourage, solicit, or induce, or in any manner attempt to encourage, solicit, or induce, any current or prospective client, customer, licensee, supplier, or other business relation of the Company or any of its Affiliates, or any such relation that was a client, customer, licensee or other business relation within the prior six (6)-month period, in each case, with whom Grantee transacted business or whose identity became known to Grantee in connection with Grantee’s relationship with, or employment by, the Company or any of its Affiliates, to cease doing business with or reduce the amount of business conducted with the Company or its Affiliates, or in any way interfere with the relationship between any such relation and the Company or any of its Affiliates.

16.Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws’ provisions thereof. OPTIONEE IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION, OR OTHER PROCEEDING INSTITUTED BY OR AGAINST OPTIONEE IN RESPECT OF OPTIONEE’S RIGHT OR OBLIGATIONS HEREUNDER.

17.Acceptance of Terms and Conditions. By physically or electronically acknowledging this Award, Grantee agrees to and acknowledges the following:

(a)     Grantee acknowledges receipt of a copy of the Plan prospectus, included in which is a summary of the terms of the Plan. The summary contained therein is qualified in its entirety by reference to the terms of the Plan, copies of which are available with the Company’s public filings with the United States Securities and Exchange Commission at www.sec.gov, or by oral or written request directed to the Company. Grantee represents that he is familiar with the terms and provisions of the Plan, and hereby accepts the RSUs, subject to all of the terms and provisions thereof. Grantee agrees to hereby accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan or this Agreement;

(b)     Grantee understands and agrees that this Agreement and the Plan constitute a binding agreement between Grantee and the Company and represent the entire understanding between Grantee and the Company regarding the Award, and that any prior agreements, commitments or negotiations concerning the Award are replaced and superseded;

(c)     Grantee acknowledges the authority of the Committee, or its designee, to administer and interpret the terms and conditions set forth in this Agreement and the Plan; and

(d)     Grantee acknowledges that this Agreement contains provisions that may impact your ability to take certain actions during and after your employment with the Company, and that any breach of the covenants contained in this Agreement, including but not limited to those contained in Paragraph 15, may constitute Detrimental Activity as such term is defined in the Plan.        

SCHEDULE A

PERFORMANCE-BASED RESTRICTED STOCK UNITS

(1) [DESCRIPTION OF PERFORMANCE METRICS]

(2) [DESCRIPTION OF ADDITIONAL SERVICE-BASED VESTING PERIOD]

EX-10.31

Exhibit 10.31

TOLL BROTHERS, INC.
2019 OMNIBUS INCENTIVE PLAN

RESTRICTED STOCK UNIT AGREEMENT

(TOTAL SHAREHOLDER RETURN PERFORMANCE BASED)

This Restricted Stock Unit Agreement (this “Agreement”) documents the grant of a number of Restricted Stock Units (the “RSUs”) as set forth on Schedule A attached hereto by Toll Brothers, Inc. (the “Company”) pursuant to the terms of the Toll Brothers, Inc. 2019 Omnibus Incentive Plan (the “Plan”) on this [_____](the “Date of Grant”) to [_____](the “Grantee”). Subject to the terms of the Plan and this Agreement, each RSU represents the right to receive one share of Common Stock at the date specified herein, or such greater or lesser number of shares of Common Stock as provided in Schedule A hereto (the “Shares”).

1.    Definitions. All capitalized terms contained in this Agreement shall have the meaning set forth in the Plan unless otherwise defined herein (including Schedule A).

2.    Performance-Based Vesting. The RSUs shall, except to the extent accelerated vesting is provided for under the terms of the Plan or as set forth in this Agreement, become vested and Grantee shall be entitled to receipt of the Shares subject to the RSUs only if the performance metrics, if any, described in Schedule A, attached hereto and made a part hereof, are satisfied; subject to the Grantee’s continued employment through the Performance Measurement Date.

3.    Vesting Upon Death or Disability; Retirement.

(a)     Death or Disability. Notwithstanding any of the provisions in Section 2, the Target Award with respect to any non-completed TSR Measurement Period shall become fully vested in the event the Grantee’s service as an employee of the Company and its Affiliates terminates by reason of the Grantee’s death, or by reason of the Grantee’s Disability prior to the Performance Measurement Date.

(b)     Retirement. Notwithstanding any of the provisions in Section 2, in the event the Grantee’s service as an employee or as a member of the Board of the Company terminates due to Grantee’s voluntary termination on or after attainment of either (i) age 58 and following the completion of at least ten years of service to the Company or any of its Affiliates or (ii) age 62 following the completion of at least five years of service to the Company or any of its Affiliates (“Retirement”) at any time prior to the Performance Measurement Date, the Grantee shall remain be entitled to receive all Vested RSUs (based on actual performance over the full TSR Measurement Period) that Grantee otherwise would have earned had Grantee remain employed through the Performance Measurement Date.

4.    Vesting Upon Change in Control Covered Termination. Notwithstanding any of the provisions of Section 2, in the event that the Grantee’s employment with the Company and its Affiliates is terminated under circumstances that would meet the definition of a “Change in Control Covered Termination” under the Company’s Executive Severance Plan in effect on the Date of Grant (regardless of whether Grantee is eligible for benefits under the Executive Severance Plan) during the TSR Measurement Period, then the Target Award number of RSUs shall become fully vested.

5.    Delivery of Shares. Shares subject to RSUs that vest (together with any payments due pursuant to Paragraph 6 in respect of such Shares) shall be delivered Grantee (or the person to whom ownership rights may have passed by will or the laws of descent and distribution), on or as soon as administratively practicable after the first to occur of the following, in all cases subject to Paragraph 5(d):

(a)     For RSUs that have vested under Paragraphs 2 “Performance-Based Vesting” or 3(b) “Retirement”, a date selected by the Company between [_____] and [_____];

(b)     For RSUs that have vested under Paragraph 3(a) “Death or Disability”, the date of Grantee’s termination of employment;

(c)     For RSUs that have vested under Paragraph 4 “Vesting Upon Change in Control Covered Termination,” the date of the Grantee’s Change in Control Covered Termination;

(d)     Delivery of the Shares by reason of Grantee’s termination of employment shall be delayed until the six (6) month anniversary of the date of Grantee’s termination of employment to the extent necessary to comply with Code Section 409A(a)(B)(i), and the determination of whether or not there has been a termination of Grantee’s employment with the Company shall be made by the Committee consistent with the definition of “separation from service” (as that phrase is used for purposes of Code Section 409A, and as set forth in Treasury Regulation Section 1.409A-1(h)).

The Company shall, without payment from Grantee (or the person to whom ownership rights may have passed by will or the laws of descent and distribution) for the Shares, other than any required withholding taxes, as provided in Paragraph 10, below, (i) deliver to Grantee (or such other person) a certificate for the Shares being delivered or (ii) deliver electronically to an account designated by Grantee (or such other person) the Shares being delivered, in either case without any legend or restrictions, except for such restrictions as may be imposed by the Committee, in its sole judgment, consistent with the terms of the Plan. The Company may condition delivery of the Shares upon the prior receipt from Grantee (or such other person) of any undertakings which it may determine are required to assure that the Shares being delivered are being issued in compliance with federal and state securities laws. The right to any fractional Shares shall be satisfied in cash, measured by the product of the fractional amount times the fair market value of a Share on the date the Share would otherwise have been delivered, as determined by the Committee.

6.    Dividends. Grantee shall not be entitled to any cash, securities or property that would have been paid or distributed as dividends with respect to the Shares subject to this Agreement prior to the date the Shares are delivered to Grantee; provided, however, that the Company shall keep a hypothetical account in which any such items shall be recorded, and shall pay to Grantee the amount of such dividends (in cash or in kind as determined by the Company) on the same date and to the same extent (if at all) that the Shares to which such payments or distributions relate are required to be delivered under this Agreement.

7.    Forfeiture. All of the RSUs and Grantee’s rights to receive Shares, whether or not vested, and any payment hereunder shall be forfeited if Grantee is terminated from employment and the Committee (or, with respect to any Grantee who is not an “officer” as defined for purposes of Paragraph 16 of the Exchange Act, its designee) determines that the Grantee was dismissed for Cause. If Grantee’s service as an employee of the Company terminates for any reason other than death, Disability, Retirement, a Change in Control Covered Termination or termination for Cause, then upon that termination Grantee shall forfeit all RSUs that have not become vested on or before the date of such termination, and no Shares shall be delivered nor payment made in respect of such RSUs.

8.    Non-Transferability of the RSUs. Grantee shall not be permitted to sell, transfer, pledge, assign or otherwise dispose of the RSUs at any time. Notwithstanding the foregoing, in the event of Grantee’s death, the RSUs may be transferred by will or by the laws of descent and distribution.

9.    Rights of Grantee. Grantee shall have none of the rights of a shareholder at any time prior to the delivery of the Shares subject to this Agreement, except as expressly set forth in the Plan or herein.

10.    Withholding Taxes. Grantee shall be responsible to pay to the Company the amount of withholding taxes as determined by the Company on the date the Shares are delivered. At the Grantee’s option, Grantee shall have the right to relinquish to the Company a portion of the Shares having a fair market value, based on the closing price of the Common Stock on the NYSE on such delivery date, equal to the amount the Grantee would otherwise be required to pay to the Company on such delivery date by reason of applicable withholding taxes, in lieu of paying that amount to the Company in cash. Grantee authorizes the Company to withhold in accordance with applicable law from any compensation payable to him or her any taxes required to be withheld for federal, state or local law in connection with this Agreement.

11.    Notices. Any notice to the Company under this Agreement shall be made in care of the Committee to the office of the General Counsel, at the Company’s main offices. Any notice to be given to the Grantee shall be addressed to the Grantee at the address then appearing on the personnel records of the Company or the Affiliate of the Company by which he or she is employed, or at such other address as either party hereafter may designate in writing to the other. The Company may provide any notice hereunder through electronic means, including through the Company’s equity plan administrator.

12.    Legal Requirements. If the listing, registration or qualification of Shares deliverable in respect of an RSU upon any securities exchange or under any federal or state law, or the consent or approval of any governmental regulatory body is necessary as a condition of or in connection with the issuance of such Shares, the Company shall not be obligated to issue or deliver such Shares unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained. If registration is considered unnecessary by the Company or its counsel, the Company may cause a legend to be placed on any Shares being issued calling attention to the fact that they have been acquired for investment and have not been registered. The Committee may from time to time impose any other conditions on the Shares it deems necessary or advisable to ensure that Shares are issued and resold in compliance with the Securities Act of 1933, as amended.

13.    Grant of RSU Not to Affect Service. The grant of the RSUs shall not confer upon Grantee any right to continue as an employee of the Company or to serve in any other capacity for the Company or any Affiliate.

14.    Acceleration. The Committee shall have the authority to accelerate vesting in its own discretion in amounts and under circumstances where the Committee deems it equitable to do so and on conditions reasonably imposed by the Committee.

15.    Certain Covenants. In order to induce the Company to enter in this Agreement and grant the RSU, Grantee acknowledges and agrees as follows:

(a)     Confidentiality. At all times during the term of Grantee’s employment with the Company or its Affiliates, and at all times thereafter, Grantee shall hold in confidence, and not use, except for the benefit of the Company and its Affiliates, or disclose to any person, firm, corporation, or other entity without written authorization of the Company, any Confidential Information (as defined below) that Grantee obtains or creates. Grantee further agrees not to make copies of such Confidential Information except as authorized by the Company. “Confidential Information” means information that the Company or its Affiliates has or will develop, acquire, create, compile, discover, or own, that has value in or to the business of the Company or its Affiliates that is not generally known and that the Company wishes to maintain as confidential. Grantee understands that Confidential Information includes, but is not limited to, any and all non-public information that relates to the actual or anticipated business and/or products, research, or development of the Company or its Affiliates, or to the Company’s or its Affiliate’s technical data, trade secrets, or know-how, including, but not limited to, research, product plans, or other information regarding the Company’s or its Affiliate’s products or services and markets, customer lists, and customers (including, but not limited to, customers of the Company or its Affiliates on whom Grantee called or with whom Grantee may become acquainted during the term of his or her employment), software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, and other business information disclosed by the Company or its Affiliates either directly or indirectly in writing, orally, or by drawings or inspection of premises, parts, equipment, or other Company property. Notwithstanding the foregoing, Confidential Information shall not include (i) any of the foregoing items that have become publicly and widely known through no unauthorized disclosure by Grantee or others who were under confidentiality obligations as to the item or items involved or (ii) any information that Grantee is required to disclose to, or by, any U.S. federal, state or local governmental or law enforcement branch, agency or entity (collectively, a “Governmental Entity”); provided, however, that in such event Grantee will give the Company prompt written notice thereof so that the Company or its Affiliate may seek an appropriate protective order and/or waive in writing compliance with the confidentiality provisions in this Agreement.

(b)     Permitted Disclosure. Nothing in this Agreement shall prohibit or impede Grantee from communicating, cooperating or filing a complaint with any Governmental Entity with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise making disclosures to any Governmental Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation, provided that in each case such communications and disclosures are consistent with applicable law. Grantee understands that Grantee does not need the prior authorization of (or to give notice to) the Company regarding any such communication or disclosure. Grantee further understands and acknowledge that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (i) in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Grantee understands and acknowledges further that an individual who files a lawsuit fo

r retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. Notwithstanding the foregoing, under no circumstance will Grantee be authorized to disclose any information covered by attorney-client privilege or attorney work product of the Company or any of its Affiliates without prior written consent of the Company’s General Counsel or other officer designated by the Company.

(c)     Non-Disparagement. Grantee agrees that during the term of Grantee’s employment with the Company or its Affiliates, and at all times thereafter, Grantee will not make any disparaging or defamatory comments regarding the Company or any of its Affiliates or their respective current or former directors, officers, or employees in any respect or make any comments concerning any aspect of Grantee’s relationship with the Company or any of its Affiliates or any conduct or events which precipitated any termination of Grantee’s employment from the Company or any of its Affiliates. However, Optionee’s obligations under this subparagraph (c) shall not apply to (i) disclosures required by applicable law, regulation, or order of a court or governmental agency or (ii) disclosures or communications described in Paragraph 13(b) of this Agreement or otherwise protected from restriction under applicable law.

(d)     Non-Solicitation. Grantee agrees that during the term of Grantee’s employment with the Company and its Affiliates, and for the one-year period thereafter, Grantee shall not, directly or indirectly for Grantee’s own account or for the account of any other individual or entity, (A) encourage, solicit, or induce, or in any manner attempt to encourage, solicit, or induce, any person employed by, or providing consulting services to, the Company or any of its Affiliates to terminate such person’s employment or services (or in the case of a consultant, materially reducing such services) with the Company or any of its Affiliates, (B) hire any individual who was employed by the Company or any of its Affiliates within the six (6)-month period prior to the date of such hiring, or (C) encourage, solicit, or induce, or in any manner attempt to encourage, solicit, or induce, any current or prospective client, customer, licensee, supplier, or other business relation of the Company or any of its Affiliates, or any such relation that was a client, customer, licensee or other business relation within the prior six (6)-month period, in each case, with whom Grantee transacted business or whose identity became known to Grantee in connection with Grantee’s relationship with, or employment by, the Company or any of its Affiliates, to cease doing business with or reduce the amount of business conducted with the Company or its Affiliates, or in any way interfere with the relationship between any such relation and the Company or any of its Affiliates.

16.    Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws’ provisions thereof. OPTIONEE IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION, OR OTHER PROCEEDING INSTITUTED BY OR AGAINST OPTIONEE IN RESPECT OF OPTIONEE’S RIGHT OR OBLIGATIONS HEREUNDER.

17.    Acceptance of Terms and Conditions. By physically or electronically acknowledging this Award, Grantee agrees to and acknowledges the following:

(a)     Grantee acknowledges receipt of a copy of the Plan prospectus, included in which is a summary of the terms of the Plan. The summary contained therein is qualified in its entirety by reference to the terms of the Plan, copies of which are available with the Company’s public filings with the United States Securities and Exchange Commission at www.sec.gov, or by oral or written request directed to the Company. Grantee represents that he is familiar with the terms and provisions of the Plan, and hereby accepts the RSUs, subject to all of the terms and provisions thereof. Grantee agrees to hereby accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan or this Agreement;

(b)     Grantee understands and agrees that this Agreement and the Plan constitute a binding agreement between Grantee and the Company and represent the entire understanding between Grantee and the Company regarding the Award, and that any prior agreements, commitments or negotiations concerning the Award are replaced and superseded;

(c)     Grantee acknowledges the authority of the Committee, or its designee, to administer and interpret the terms and conditions set forth in this Agreement and the Plan; and

(d)     Grantee acknowledges that this Agreement contains provisions that may impact your ability to take certain actions during and after your employment with the Company, and that any breach of the covenants contained in this Agreement, including but not limited to those contained in Paragraph 15, may constitute Detrimental Activity as such term is defined in the Plan.

SCHEDULE A

Target Award: ____________ RSUs

1. [DEFINITIONS]

2. [PERFORMANCE VESTING CONDITIONS]

3. [DETERMINATION OF AWARD]

4. [SETTLEMENT OF RSUS]

EX-21

Exhibit 21

SUBSIDIARIES OF TOLL BROTHERS, INC.

As of October 31, 2019

A.    Corporations

1. 110-112 Third Ave. Realty Corp., a New York corporation.

2. Dominion III Corp., a Delaware corporation.

3. ESE Consultants, Inc., a Delaware corporation.

4. ESE Consultants, Inc., a Texas corporation.

5. ESE of North Carolina, PC, a North Carolina professional corporation.

6. First Brandywine Investment Corp. II, a Delaware corporation.

7. First Brandywine Investment Corp. IV, a Delaware corporation.

8. First Huntingdon Finance Corp., a Delaware corporation.

9. GCAM Holding Co., Inc., a Delaware corporation.

10. Hampton Pointe Club, Inc., a South Carolina non-profit corporation.

11. HQZ Acquisitions, Inc., a Michigan corporation.

12. Jupiter Country Club, Inc., a Florida non-profit corporation.

13. Philmont Insurance Company, a Vermont corporation.

14. PRD Investors, Inc., a Delaware corporation.

15. Shapell Homes, Inc., a Delaware corporation.

16. Shapell Industries, Inc., a Delaware corporation.

17. The Silverman Building Companies, Inc., a Michigan corporation.

18. TBI Mortgage Company, a Delaware corporation.

19. TBI Smart Home Solutions, Inc., a New Jersey corporation.

20. TB Proprietary Corp., a Delaware corporation.

21. TIS Logistics, Inc., a Pennsylvania corporation.

22. Toll Apartments LP Company, Inc., a Delaware corporation.

23. Toll Architecture, Inc., a Delaware corporation.

24. Toll Architecture I, P.A., a Delaware professional corporation.

25. Toll Bros. of Arizona, Inc., an Arizona corporation.

26. Toll Bros. of North Carolina, Inc., a North Carolina corporation.

27. Toll Bros. of North Carolina II, Inc., a North Carolina corporation.

28. Toll Bros., Inc., a Pennsylvania corporation.

29. Toll Bros., Inc., a Texas corporation.

30. Toll Brothers AZ Construction Company, an Arizona corporation.

31. Toll Brothers Canada USA, Inc., a Delaware corporation.

32. Toll Brothers Finance Corp., a Delaware corporation.

33. Toll Brothers International Holdings, Inc., a Delaware corporation.

34. Toll Brothers Real Estate, Inc., a Pennsylvania corporation.

35. Toll CA Holdings, Inc., a Delaware corporation.

36. Toll Corp., a Delaware corporation.

37. Toll DC GP Corp., a District of Columbia corporation.

38. Toll Diamond Corp., a Delaware corporation.

39. Toll Golden Corp., a Delaware corporation.

40. Toll Holdings, Inc., a Delaware corporation.

41. Toll Land Corp. No. 6, a Pennsylvania corporation.

42. Toll Mid-Atlantic V Corp., a Delaware corporation.

43. Toll Mid-Atlantic LP Company, Inc., a Delaware corporation.

44. Toll MI VII Corp., a Michigan corporation.

45. Toll NJX-I Corp., a Delaware corporation.

46. Toll Northeast V Corp., a Delaware corporation.

47. Toll Northeast LP Company, Inc., a Delaware corporation.

48. Toll Northeast Services, Inc., a Delaware corporation.

49. Toll NV GP Corp., a Nevada corporation.

50. Toll Realty Holdings Corp. I, a Delaware corporation.

51. Toll Realty Holdings Corp. II, a Delaware corporation.

52. Toll Rental Holdings, Inc., a Delaware corporation.

53. Toll Southeast Inc., a Delaware corporation.

54. Toll Southeast LP Company, Inc., a Delaware corporation.

55. Toll SW Holding I Corp., a Nevada corporation.

56. Toll VA GP Corp., a Delaware corporation.

57. Toll West Inc., a Delaware corporation.

58. Toll WV GP Corp., a West Virginia corporation.

59. Upper K Investors, Inc., a Delaware corporation.

60. Valeria Sewerage Works Corporation, a New York corporation.

61. Westminster Abstract Company, a Pennsylvania corporation.

62. Westminster Insurance Agency, Inc., a Pennsylvania corporation.

63. Westminster Title Company, Inc., a California corporation.

B.    Partnerships

1. Ashford Land Company, L.P., a Delaware limited partnership.

2. Audubon Ridge, L.P., a Pennsylvania limited partnership.

3. Belmont Land, L.P., a Virginia limited partnership.

4. Binks Estates Limited Partnership, a Florida limited partnership.

5. The Bird Estate Limited Partnership, a Massachusetts limited partnership.

6. Broad Run Associates, L.P., a Pennsylvania limited partnership.

7. Broad Washington, L.P., a Delaware limited partnership.

8. Byers Commercial LP, a Pennsylvania limited partnership.

9. CC Estates Limited Partnership, a Massachusetts limited partnership.

10. Cold Spring Hunt, L.P., a Pennsylvania limited partnership.

11. Coleman-Toll Limited Partnership, a Nevada limited partnership.

12. Dominion Country Club, L.P., a Virginia limited partnership.

13. Estates at Princeton Junction, L.P., a New Jersey limited partnership.

14. Fairfax Investment, L.P., a Virginia limited partnership.

15. First Brandywine Partners, L.P., a Delaware partnership.

16. Gibraltar Road LP, a Pennsylvania limited partnership.

17. Greens at Waynesborough, L.P., a Pennsylvania limited partnership.

18. Hoboken Land LP, a New Jersey limited partnership.

19. Hockessin Chase, L.P., a Delaware limited partnership.

20. Laurel Creek, L.P., a New Jersey limited partnership.

21. Loudoun Valley Associates, L.P., a Virginia limited partnership.

22. NC Country Club Estates Limited Partnership, a North Carolina limited partnership.

23. Plymouth Apartments Management LP, a Pennsylvania limited partnership.

24. Reston Note Co. LP, a Virginia limited partnership.

25. Sorrento at Dublin Ranch I LP, a California limited partnership.

26. Sorrento at Dublin Ranch III LP, a California limited partnership.

27. South Riding Amberlea LP, a Virginia limited partnership.

28. South Riding, L.P., a Virginia limited partnership.

29. South Riding Partners Amberlea LP, a Virginia limited partnership.

30. South Riding Partners, L.P., a Virginia limited partnership.

31. Southport Landing Limited Partnership, a Connecticut limited partnership.

32. Springton Pointe, L.P., a Pennsylvania limited partnership.

33. Stone Mill Estates, L.P. a Pennsylvania limited partnership.

34. Swedesford Chase, L.P., a Pennsylvania limited partnership.

35. TBI/Palm Beach Limited Partnership, a Florida limited partnership.

36. Toll Apartments, LP, a Delaware limited partnership.

37. Toll at Brier Creek Limited Partnership, a North Carolina limited partnership.

38. Toll at Westlake, L.P., a New Jersey limited partnership.

39. Toll at Whippoorwill, L.P., a New York limited partnership.

40. Toll Brooklyn L.P., a New York limited partnership.

41. Toll Brooklyn Pier GP L.P., a New York limited partnership.

42. Toll Brooklyn Pier L.P., a New York limited partnership.

43. Toll Brothers AZ Limited Partnership, an Arizona limited partnership.

44. Toll CA, L.P., a California limited partnership.

45. Toll CA II, L.P., a California limited partnership.

46. Toll CA III, L.P., a California limited partnership.

47. Toll CA IV, L.P., a California limited partnership.

48. Toll CA V, L.P., a California limited partnership.

49. Toll CA VI, L.P., a California limited partnership.

50. Toll CA VII, L.P., a California limited partnership.

51. Toll CA VIII, L.P., a California limited partnership.

52. Toll CA IX, L.P., a California limited partnership.

53. Toll CA X, L.P., a California limited partnership.

54. Toll CA XI, L.P., a California limited partnership.

55. Toll CA XII, L.P., a California limited partnership.

56. Toll CA XIX, L.P., a California limited partnership.

57. Toll CA XX, L.P., a California limited partnership.

58. Toll CO, L.P., a Colorado limited partnership.

59. Toll CO II, L.P., a Colorado limited partnership.

60. Toll CO III, L.P., a Colorado limited partnership.

61. Toll CP Limited Partnership, a Maryland limited partnership.

62. Toll CT Limited Partnership, a Connecticut limited partnership.

63. Toll CT II Limited Partnership, a Connecticut limited partnership.

64. Toll CT III Limited Partnership, a Connecticut limited partnership.

65. Toll CT IV Limited Partnership, a Connecticut limited partnership.

66. Toll DE LP, a Delaware limited partnership.

67. Toll DE II LP, a Delaware limited partnership.

68. Toll District 7 LP, a California limited partnership.

69. Toll Dolington LP, a Pennsylvania limited partnership.

70. Toll Estero Limited Partnership, a Florida limited partnership.

71. Toll FL Limited Partnership, a Florida limited partnership.

72. Toll FL II Limited Partnership, a Florida limited partnership.

73. Toll FL III Limited Partnership, a Florida limited partnership.

74. Toll FL IV Limited Partnership, a Florida limited partnership.

75. Toll FL V Limited Partnership, a Florida limited partnership.

76. Toll FL VI Limited Partnership, a Florida limited partnership.

77. Toll FL VII Limited Partnership, a Florida limited partnership.

78. Toll FL VIII Limited Partnership, a Florida limited partnership.

79. Toll FL X Limited Partnership, a Florida limited partnership.

80. Toll FL XI Limited Partnership, a Florida limited partnership.

81. Toll FL XII Limited Partnership, a Florida limited partnership.

82. Toll FL XIII Limited Partnership, a Florida limited partnership.

83. Toll French Creek LP, a Pennsylvania limited partnership.

84. Toll GA LP, a Georgia limited partnership.

85. Toll Gibraltar LP, a Pennsylvania limited partnership.

86. Toll Grove LP, a New Jersey limited partnership.

87. Toll Hudson LP, a New Jersey limited partnership.

88. Toll IL HWCC, L.P., an Illinois limited partnership.

89. Toll IL, L.P., an Illinois limited partnership.

90. Toll IL II, L.P., an Illinois limited partnership.

91. Toll IL III, L.P., an Illinois limited partnership.

92. Toll IL IV, L.P., an Illinois limited partnership.

93. Toll IL WSB, L.P., an Illinois limited partnership.

94. Toll Jacksonville Limited Partnership, a Florida limited partnership.

95. Toll Land IV Limited Partnership, a New Jersey limited partnership.

96. Toll Land V Limited Partnership, a New York limited partnership.

97. Toll Land VI Limited Partnership, a New York limited partnership.

98. Toll Land IX Limited Partnership, a Virginia limited partnership.

99. Toll Land X Limited Partnership, a Virginia limited partnership.

100. Toll Land XI Limited Partnership, a New Jersey limited partnership.

101. Toll Land XV Limited Partnership, a Virginia limited partnership.

102. Toll Land XVI Limited Partnership, a New Jersey limited partnership.

103. Toll Land XVIII Limited Partnership, a Connecticut limited partnership.

104. Toll Land XIX Limited Partnership, a California limited partnership.

105. Toll Land XX Limited Partnership, a California limited partnership.

106. Toll Land XXI Limited Partnership, a Virginia limited partnership.

107. Toll Land XXII Limited Partnership, a California limited partnership.

108. Toll Land XXIII Limited Partnership, a California limited partnership.

109. Toll Land XXV Limited Partnership, a New Jersey limited partnership.

110. Toll MA Land Limited Partnership, a Massachusetts limited partnership.

111. Toll MA Land III Limited Partnership, a Massachusetts limited partnership.

112. Toll MD AF Limited Partnership, a Maryland limited partnership.

113. Toll MD Limited Partnership, a Maryland limited partnership.

114. Toll MD II Limited Partnership, a Maryland limited partnership.

115. Toll MD III Limited Partnership, a Maryland limited partnership.

116. Toll MD IV Limited Partnership, a Maryland limited partnership.

117. Toll MD V Limited Partnership, a Maryland limited partnership.

118. Toll MD VI Limited Partnership, a Maryland limited partnership.

119. Toll MD VII Limited Partnership, a Maryland limited partnership.

120. Toll MD VIII Limited Partnership, a Maryland limited partnership.

121. Toll MD IX Limited Partnership, a Maryland limited partnership.

122. Toll MD X Limited Partnership, a Maryland limited partnership.

123. Toll MD XI Limited Partnership, a Maryland limited partnership.

124. Toll MI Limited Partnership, a Michigan limited partnership.

125. Toll MI II Limited Partnership, a Michigan limited partnership.

126. Toll MI III Limited Partnership, a Michigan limited partnership.

127. Toll MI IV Limited Partnership, a Michigan limited partnership.

128. Toll MI V Limited Partnership, a Michigan limited partnership.

129. Toll MI VI Limited Partnership, a Michigan limited partnership.

130. Toll MN, L.P., a Minnesota limited partnership.

131. Toll MN II, L.P., a Minnesota limited partnership.

132. Toll Naples Limited Partnership, a Florida limited partnership.

133. Toll Naval Associates, a Pennsylvania general partnership.

134. Toll NC, L.P., a North Carolina limited partnership.

135. Toll NC II LP, a North Carolina limited partnership.

136. Toll NC III LP, a North Carolina limited partnership.

137. Toll NJ, L.P., a New Jersey limited partnership.

138. Toll NJ II, L.P., a New Jersey limited partnership.

139. Toll NJ III, L.P., a New Jersey limited partnership.

140. Toll NJ IV, L.P., a New Jersey limited partnership.

141. Toll NJ VI, L.P., a New Jersey limited partnership.

142. Toll NJ VII, L.P., a New Jersey limited partnership.

143. Toll NJ VIII, L.P., a New Jersey limited partnership.

144. Toll NJ IX, L.P., a New Jersey limited partnership.

145. Toll NJ XI, L.P., a New Jersey limited partnership.

146. Toll NJ XII LP, a New Jersey limited partnership.

147. Toll NV Limited Partnership, a Nevada limited partnership.

148. Toll NY L.P., a New York limited partnership.

149. Toll NY III L.P., a New York limited partnership.

150. Toll NY IV L.P., a New York limited partnership.

151. Toll NY V L.P., a New York limited partnership.

152. Toll Orlando Limited Partnership, a Florida limited partnership.

153. Toll PA, L.P., a Pennsylvania limited partnership.

154. Toll PA II, L.P., a Pennsylvania limited partnership.

155. Toll PA III, L.P., a Pennsylvania limited partnership.

156. Toll PA IV, L.P., a Pennsylvania limited partnership.

157. Toll PA V, L.P., a Pennsylvania limited partnership.

158. Toll PA VI, L.P., a Pennsylvania limited partnership.

159. Toll PA VIII, L.P., a Pennsylvania limited partnership.

160. Toll PA IX, L.P., a Pennsylvania limited partnership.

161. Toll PA X, L.P., a Pennsylvania limited partnership.

162. Toll PA XI, L.P., a Pennsylvania limited partnership.

163. Toll PA XII, L.P., a Pennsylvania limited partnership.

164. Toll PA XIII, L.P., a Pennsylvania limited partnership.

165. Toll PA XIV, L.P., a Pennsylvania limited partnership.

166. Toll PA XV, L.P., a Pennsylvania limited partnership.

167. Toll PA XVI, L.P., a Pennsylvania limited partnership.

168. Toll PA XVII, L.P., a Pennsylvania limited partnership.

169. Toll PA XVIII, L.P., a Pennsylvania limited partnership.

170. Toll PA XIX, L.P., a Pennsylvania limited partnership.

171. Toll PA Development LP, a Pennsylvania limited partnership.

172. Toll PA Management LP, a Pennsylvania limited partnership.

173. Toll Plaza, LP, a Pennsylvania limited partnership.

174. Toll Realty Holdings LP, a Delaware limited partnership.

175. Toll RI, L.P., a Rhode Island limited partnership.

176. Toll RI II, L.P., a Rhode Island limited partnership.

177. Toll SC, L.P., a South Carolina limited partnership.

178. Toll SC II, L.P., a South Carolina limited partnership.

179. Toll SC III, L.P., a South Carolina limited partnership.

180. Toll SC IV, L.P., a South Carolina limited partnership.

181. Toll Stonebrae LP, a California limited partnership.

182. Toll VA, L.P., a Virginia limited partnership.

183. Toll VA II, L.P., a Virginia limited partnership.

184. Toll VA III, L.P., a Virginia limited partnership.

185. Toll VA IV, L.P., a Virginia limited partnership.

186. Toll VA V, L.P., a Virginia limited partnership.

187. Toll VA VI, L.P., a Virginia limited partnership.

188. Toll VA VII, L.P., a Virginia limited partnership.

189. Toll VA VIII, L.P., a Virginia limited partnership.

190. Toll WV, L.P., a West Virginia limited partnership.

191. Toll YL II, L.P., a California limited partnership.

192. Toll Washington Square LP, a Delaware limited partnership.

193. Toll-Dublin, L.P., a California limited partnership.

194. Dolington Land LP, a Pennsylvania limited partnership (66.6% owned by one of Registrant’s subsidiaries)

C. Joint Venture (Wholly-Owned)

1. Porter Ranch Development Co., a California joint venture.

D.    Limited Liability Companies

1. 31 E. Thomas Road LLC, an Arizona limited liability company.

2. 55 West 17th Street Partners LLC, a New York limited liability company.

3. 89 Park Avenue LLC, a New York limited liability company.

4. 100 Barrow Street LLC, a New York limited liability company.

5. 100 Barrow Street Member LLC, a New York limited liability company.

6. 122-130 East 23rd Street Owner LLC, a New York limited liability company.

7. 122-130 East 23rd Street Owner Member LLC, a New York limited liability company.

8. 126-142 Morgan Street Urban Renewal LLC, a New Jersey limited liability company.

9. 134 Bay Street LLC, a Delaware limited liability company.

10. 353-357 Broadway Owner LLC, a New York limited liability company.

11. 353-357 Broadway Owner Member LLC, a New York limited liability company.

12. 435 North Broad Associates LLC, a Delaware limited liability company.

13. 700 Grove Street Urban Renewal, LLC, a New Jersey limited liability company.

14. 1400 Hudson LLC, a New Jersey limited liability company.

15. 1450 Washington LLC, a New Jersey limited liability company.

16. 1451 Hudson LLC, a New Jersey limited liability company.

17. 1500 Garden St. LLC, a New Jersey limited liability company.

18. 2686-2690 Broadway LLC, a New York limited liability company.

19. 2686-2690 Broadway Member LLC, a Delaware limited liability company.

20. Approvals Management LLC, a Delaware limited liability company.

21. Approvals Management Member LLC, a Delaware limited liability company.

22. Arbor Hills Development LLC, a Michigan limited liability company.

23. Arbors Porter Ranch, LLC, a California limited liability company.

24. Belmont Country Club I LLC, a Virginia limited liability company.

25. Belmont Country Club II LLC, a Virginia limited liability company.

26. Block 255 LLC, a New Jersey limited liability company.

27. Block 268 LLC, a New Jersey limited liability company.

28. Brier Creek Country Club I LLC, a North Carolina limited liability company.

29. Brier Creek Country Club II LLC, a North Carolina limited liability company.

30. Broad Washington GP, LLC, a Delaware limited liability company.

31. Byers Commercial LLC, a Delaware limited liability company.

32. Component Systems I LLC, a Delaware limited liability company.

33. Component Systems II LLC, a Delaware limited liability company.

34. Corporate Drive Apartments LLC, a New York limited liability company.

35. CWG Construction Company LLC, a New Jersey limited liability company.

36. CWG Management LLC, a New Jersey limited liability company.

37. Dominion Valley Country Club I LLC, a Virginia limited liability company.

38. Dominion Valley Country Club II LLC, a Virginia limited liability company.

39. East Windsor Investments I LLC, a New Jersey limited liability company.

40. East Windsor Investments II LLC, a New Jersey limited liability company.

41. Enclave at Long Valley I LLC, a New Jersey limited liability company.

42. Enclave at Long Valley II LLC, a New Jersey limited liability company.

43. First Brandywine LLC I, a Delaware limited liability company.

44. First Brandywine LLC II, a Delaware limited liability company.

45. First Avenue Sutton Member LLC, a Delaware limited liability company.

46. French Creek Acquisition GP, LLC, a Delaware limited liability company.

47. Frenchman’s Reserve Realty, LLC, a Florida limited liability company.

48. GB LB-ESSEX1 LLC, a Delaware limited liability company.

49. GCAM REO LLC, a Delaware limited liability company.

50. Gibraltar AB Investments LLC, a Delaware limited liability company.

51. Gibraltar Asset Management Services LLC, a Delaware limited liability company.

52. Gibraltar BBI Investments LLC, a Delaware limited liability company.

53. Gibraltar BMI LLC, a Delaware limited liability company.

54. Gibraltar Capital and Asset Management LLC, a Delaware limited liability company.

55. Gibraltar Real Estate Capital LLC, a Delaware limited liability company.

56. Golden Triangle Financial LLC, a Delaware limited liability company.

57. Goshen Road Land Company LLC, a Pennsylvania limited liability company.

58. Hampton Hall Investments LLC, a South Carolina limited liability company.

59. Hasentree Country Club I LLC, a North Carolina limited liability company.

60. Hasentree Country Club II LLC, a North Carolina limited liability company.

61. Hatboro Road Associates LLC, a Pennsylvania limited liability company.

62. HBNE Real Estate Investments I LLC, a Delaware limited liability company.

63. HBNE Real Estate Investments II LLC, a Delaware limited liability company.

64. HBSE Real Estate Investments I LLC, a Delaware limited liability company.

65. HBSE Real Estate Investments II LLC, a Delaware limited liability company.

66. HBWC Real Estate Investments I LLC, a Delaware limited liability company.

67. HBWC Real Estate Investments II LLC, a Delaware limited liability company.

68. Heritage Manor Development, LLC, a Massachusetts limited liability company.

69. HM Investments LLC, a Virginia limited liability company.

70. HM Investments II LLC, a Virginia limited liability company.

71. Hoboken Cove LLC, a New Jersey limited liability company.

72. Hoboken Land I LLC, a Delaware limited liability company.

73. Idaho TradeUp LLC, an Idaho limited liability company.

74. Jacksonville TBI Realty, LLC, a Florida limited liability company.

75. Liseter Land Company LLC, a Pennsylvania limited liability company.

76. Liseter, LLC, a Delaware limited liability company.

77. LL Parcel E, LLC, a New York limited liability company.

78. LL Parcel I, LLC, a New York limited liability company.

79. Long Meadows TBI, LLC, a Maryland limited liability company.

80. Martinsburg Ventures, L.L.C., a Virginia limited liability company.

81. Medway Residential LLC, a Delaware limited liability company.

82. Mizner Realty, L.L.C., a Florida limited liability company.

83. Morgan Street JV LLC, a Delaware limited liability company.

84. Naples TBI Realty, LLC, a Florida limited liability company.

85. Northville Lake Village Apartments Limited Liability Company, a Michigan limited liability company.

86. Orlando TBI Realty LLC, a Florida limited liability company.

87. Placentia Development Company, LLC, a California limited liability company.

88. Plum Canyon Master LLC, a Delaware limited liability company.

89. PRD Investors, LLC, a Delaware limited liability company.

90. PT Maxwell Holdings, LLC, a New Jersey limited liability company.

91. P.T. Maxwell, L.L.C., a New Jersey limited liability company.

92. QOF IA, LLC, a Delaware limited liability company.

93. QOF IB, LLC, a Delaware limited liability company.

94. QOF II, LLC, a Delaware limited liability company.

95. QOF III, LLC, a Delaware limited liability company.

96. QOF IV, LLC, a Delaware limited liability company.

97. QOZB IA, LLC, a Delaware limited liability company.

98. QOZB IB, LLC, a Delaware limited liability company.

99. QOZB III, LLC, a Delaware limited liability company.

100. Rancho Costera LLC, a Delaware limited liability company.

101. Regency at Denville, LLC, a New Jersey limited liability company.

102. Regency at Dominion Valley LLC, a Virginia limited liability company.

103. Regency at Washington I LLC, a New Jersey limited liability company.

104. Regency at Washington II LLC, a New Jersey limited liability company.

105. The Regency Golf Club I LLC, a Virginia limited liability company.

106. The Regency Golf Club II LLC, a Virginia limited liability company.

107. Ridge at Alta Vista Investments I LLC, a Texas limited liability company.

108. Ridge at Alta Vista Investments II LLC, a Texas limited liability company.

109. Ridge Residential LLC, a Delaware limited liability company.

110. Saugus Residential LLC, a Delaware limited liability company.

111. Scituate Residential LLC, a Delaware limited liability company.

112. Shapell Hold Properties No. 1, LLC, a Delaware limited liability company.

113. Shapell Land Company, LLC, a Delaware limited liability company.

114. Snowmass Club I LLC, a Colorado limited liability company.

115. Snowmass Club II LLC, a Colorado limited liability company.

116. South Riding Realty LLC, a Virginia limited liability company.

117. SR Amberlea LLC, a Virginia limited liability company.

118. SRLP II LLC, a Virginia limited liability company.

119. State College Apartments LLC, a Delaware limited liability company.

120. Sterling Grove Country Club LLC, an Arizona limited liability company.

121. Tampa TBI Realty LLC, a Florida limited liability company.

122. TB Decatur LLC, a Delaware limited liability company.

123. TB Ennis LLC, a Delaware limited liability company.

124. TB Frisco Square LLC, a Delaware limited liability company.

125. TBH Radnor LLC, a Delaware limited liability company.

126. TB Kent Partners LLC, a Delaware limited liability company.

127. TB Norwalk Apartments LLC, a Delaware limited liability company.

128. TB Plano 1 LLC, a Delaware limited liability company.

129. TB Point Two Welborn LLC, a Delaware limited liability company.

130. TB Port Liberte LLC, a Delaware limited liability company.

131. TB Public Ledger LLC, a Delaware limited liability company.

132. TB Rivercrest LLC, a Delaware limited liability company.

133. TB Van Buren LLC, a Delaware limited liability company.

134. TB Warm Springs LLC, a California limited liability company.

135. TB West Commerce LLC, a Delaware limited liability company.

136. TB Wheeler Apartments LLC, a Delaware limited liability company.

137. TB White Plains Apartments LLC, a Delaware limited liability company.

138. TL Oil & Gas LLC, a Texas limited liability company.

139. Toll 7th Terrace LLC, a Delaware limited liability company.

140. Toll Apartments Construction Management LLC, a Delaware limited liability company.

141. Toll Apartments Development LLC, a Delaware limited liability company.

142. Toll Apartments GP, LLC, a Delaware limited liability company.

143. Toll Apartments Management LLC, a Delaware limited liability company.

144. Toll Austin TX LLC, a Texas limited liability company.

145. Toll Austin TX II LLC, a Texas limited liability company.

146. Toll Austin TX III LLC, a Texas limited liability company.

147. Toll BBC LLC, a Texas limited liability company.

148. Toll BBC II LLC, a Texas limited liability company.

149. Toll BCCC, LLC, an Illinois limited liability company.

150. Toll Brothers Fort Monmouth LLC, a New Jersey limited liability company.

151. Toll CA I LLC, a California limited liability company.

152. Toll CA III LLC, a California limited liability company.

153. Toll CA Note II LLC, a California limited liability company.

154. Toll Cedar Hunt LLC, a Virginia limited liability company.

155. Toll CO I LLC, a Colorado limited liability company.

156. Toll College Park LLC, a Maryland limited liability company.

157. Toll Commerce LLC, a Delaware limited liability company.

158. Toll Corners LLC, a Delaware limited liability company.

159. Toll Dallas TX LLC, a Texas limited liability company.

160. Toll Damonte LLC, a Nevada limited liability company.

161. Toll DC IV LLC, a District of Columbia limited liability company.

162. Toll DC Development LLC, a Delaware limited liability company.

163. Toll DC Holdings LLC, a Delaware limited liability company.

164. Toll DC Management LLC, a Delaware limited liability company.

165. Toll-Dublin, LLC, a California limited liability company.

166. Toll East 23rd Street LLC, a Delaware limited liability company.

167. Toll E. 33rd Street LLC, a Delaware limited liability company.

168. Toll EB, LLC, a Delaware limited liability company.

169. Toll Equipment, L.L.C., a Delaware limited liability company.

170. Toll First Avenue LLC, a New York limited liability company.

171. Toll FL I, LLC, a Florida limited liability company.

172. Toll FL II LLC, a Florida limited liability company.

173. Toll FL III LLC, a Florida limited liability company.

174. Toll FL IV LLC, a Florida limited liability company.

175. Toll FL V LLC, a Florida limited liability company.

176. Toll GC LLC, a New York limited liability company.

177. Toll GC II LLC, a New York limited liability company.

178. Toll Gibraltar I LLC, a Pennsylvania limited liability company.

179. Toll Gibraltar II LLC, a Pennsylvania limited liability company.

180. Toll Glastonbury LLC, a Connecticut limited liability company.

181. Toll Henderson LLC, a Nevada limited liability company.

182. Toll Henderson II LLC, a Nevada limited liability company.

183. Toll Hoboken LLC, a Delaware limited liability company.

184. Toll Holmdel Urban Renewal LLC, a New Jersey limited liability company.

185. Toll Houston Land LLC, a Texas limited liability company.

186. Toll Houston TX LLC, a Texas limited liability company.

187. Toll Huntington LLC, a Delaware limited liability company.

188. Toll ID I LLC, an Idaho limited liability company.

189. Toll IN LLC, an Indiana limited liability company.

190. Toll Inspirada LLC, a Nevada limited liability company.

191. Toll Jupiter LLC, a Florida limited liability company.

192. Toll Lakes at Creekside GP LLC, a Texas limited liability company.

193. Toll Land VII LLC, a New York limited liability company.

194. Toll Landscape, L.L.C., a Delaware limited liability company.

195. Toll Landscape II, L.L.C., a Delaware limited liability company.

196. Toll Lexington LLC, a New York limited liability company.

197. Toll Lexington GC LLC, a New York limited liability company.

198. Toll MA I LLC, a Massachusetts limited liability company.

199. Toll MA II LLC, a Massachusetts limited liability company.

200. Toll MA III LLC, a Massachusetts limited liability company.

201. Toll MA IV LLC, a Massachusetts limited liability company.

202. Toll MA Development LLC, a Massachusetts limited liability company.

203. Toll MA Holdings LLC, a Delaware limited liability company.

204. Toll MA Land II GP LLC, a Delaware limited liability company.

205. Toll MA Management LLC, a Massachusetts limited liability company.

206. Toll Maxwell LLC, a New Jersey limited liability company.

207. Toll MD I, L.L.C., a Maryland limited liability company.

208. Toll MD II LLC, a Maryland limited liability company.

209. Toll MD III LLC, a Maryland limited liability company.

210. Toll MD IV LLC, a Maryland limited liability company.

211. Toll MD Realty LLC, a Maryland limited liability company.

212. Toll Mid-Atlantic II LLC, a Delaware limited liability company.

213. Toll Midwest LLC, a Delaware limited liability company.

214. Toll Milano LLC, a Delaware limited liability company.

215. Toll Morgan Street LLC, a Delaware limited liability company.

216. Toll NC I LLC, a North Carolina limited liability company.

217. Toll NC IV LLC, a North Carolina limited liability company.

218. Toll NC Note LLC, a North Carolina limited liability company.

219. Toll NC Note II LLC, a North Carolina limited liability company.

220. Toll Needham LLC, a Delaware limited liability company.

221. Toll NJ I, L.L.C., a New Jersey limited liability company.

222. Toll NJ II, L.L.C., a New Jersey limited liability company.

223. Toll NJ III, LLC, a New Jersey limited liability company.

224. Toll NJ IV LLC, a New Jersey limited liability company.

225. Toll NJ Apartments Management LLC, a New Jersey limited liability company.

226. Toll Northeast II LLC, a Delaware limited liability company.

227. Toll Northeast VIII LLC, a Delaware limited liability company.

228. Toll North LV LLC, a Nevada limited liability company.

229. Toll North Reno LLC, a Nevada limited liability company.

230. Toll NV GP I LLC, a Nevada limited liability company.

231. Toll NV Holdings LLC, a Nevada limited liability company.

232. Toll NY II LLC, a New York limited liability company.

233. Toll Oak Creek Golf LLC, a Maryland limited liability company.

234. Toll Orange Terrace LLC, a Delaware limited liability company.

235. Toll Park Avenue South LLC, a Delaware limited liability company.

236. Toll Parkland GSC LLC, a Florida limited liability company.

237. Toll Parkland LLC, a Florida limited liability company.

238. Toll PA Twin Lakes LLC, a Pennsylvania limited liability company.

239. Toll Plaza, LLC, a Pennsylvania limited liability company.

240. Toll Plymouth LLC, a Pennsylvania limited liability company.

241. Toll Port Imperial LLC, a New Jersey limited liability company.

242. Toll Prasada LLC, an Arizona limited liability company.

243. Toll Provost Square I LLC, a Delaware limited liability company.

244. Toll San Antonio TX LLC, a Texas limited liability company.

245. Toll Sienna Member LLC, a Texas limited liability company.

246. Toll Southeast II LLC, a Delaware limited liability company.

247. Toll South LV LLC, a Nevada limited liability company.

248. Toll South Reno LLC, a Nevada limited liability company.

249. Toll Southwest LLC, a Delaware limited liability company.

250. Toll Southwest II LLC, a Delaware limited liability company.

251. Toll Sparks LLC, a Nevada limited liability company.

252. Toll Stratford LLC, a Virginia limited liability company.

253. Toll SW Holding LLC, a Nevada limited liability company.

254. Toll Sutton Member Holdings LLC, a New York limited liability company.

255. Toll Technology Investments, L.L.C., a Delaware limited liability company.    

256. Toll TX Note LLC, a Texas limited liability company.

257. Toll VA III L.L.C., a Virginia limited liability company.

258. Toll Van Wyck, LLC, a New York limited liability company.

259. Toll Vanderbilt II LLC, a Rhode Island limited liability company.

260. Toll Warren Urban Renewal LLC, a New Jersey limited liability company.

261. Toll Warren 25 Urban Renewal LLC, a New Jersey limited liability company.

262. Toll Washington Square GP LLC, a Delaware limited liability company.

263. Toll WBLH Member LLC, a Maryland limited liability company.

264. Toll West Coast LLC, a Delaware limited liability company.

265. Toll West Coast II LLC, a Delaware limited liability company.

266. Upper K Investors, LLC, a Delaware limited liability company.

267. Upper K-Shapell, LLC, a Delaware limited liability company.

268. Vanderbilt Capital LLC, a Rhode Island limited liability company.

269. Van Wyck Residential I LLC, a New York limited liability company.

270. Van Wyck Residential II LLC, a New York limited liability company.

271. Virginia Construction Co. I, LLC, a Virginia limited liability company.

272. Virginia Construction Co. II, LLC, a Virginia limited liability company.

273. West Chester Partners Apartments LLC, a Pennsylvania limited liability company.

274. Westminster Title Agency, LLC, a Maryland limited liability company.

275. TB-CC II 7th Terrace LLC, a Delaware limited liability company (owned 71% by one of Registrant’s subsidiaries)

276. 7th Terrace Investors LLC, a Delaware limited liability company (100% owned by TB-CC II 7th Terrace LLC)

277. 7th Terrace Property Owner LLC, a Delaware limited liability company (100% owned by 7th Terrace Investors LLC)

278. TB-CCF Commerce LLC, a Delaware limited liability company (85% owned by one of Registrant’s subsidiaries)

279. 120 Commerce Holdings LLC (100% owned by TB-CCF Commerce LLC)

280. 120 Commerce Apartments LLC (100% owned by 120 Commerce Holdings LLC)

281. TB-CDG Orange Terrace LLC, a Delaware limited liability company (86.7% owned by one of Registrant’s subsidiaries)

282. Orange Terrace Investors, LLC, a Delaware limited liability company (100% owned by TB-CDG Orange Terrace LLC)

283. Orange Terrace Property Owner, LLC, a Delaware limited liability company (100% owned by Orange Terrace Investors, LLC)

284. TB-MBPA Milano LLC, a Delaware limited liability company (97.7% owned by one of Registrant’s subsidiaries)

285. TB Milano Holdings LLC, a Delaware limited liability company (100% owned by TB-MBPA Milano LLC)

286. TB Milano Apartments LLC, a Delaware limited liability company (100% owned by TB Milano Holdings LLC)

EX-23

Exhibit 23

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

1. Registration Statement (Form S-8 No. 333-143367) pertaining to the Stock Incentive Plan for Employees (2007) of Toll Brothers, Inc., as amended,

2. Registration Statement (Form S-8 No. 333-144230) pertaining to the Stock Incentive Plan for Non-Employee Directors (2007) of Toll Brothers, Inc., as amended,

3. Registration Statement (Form S-4 No. 333-179380) of Toll Brothers, Inc. Toll Corp., First Huntingdon Finance Corp., Toll Brothers Finance Corp., and the additional registrants named therein and in the related Prospectus,

4. Registration Statement (Form S-8 No. 333-194533) pertaining to the Toll Brothers, Inc. Stock Incentive Plan for Employees (2014),

5. Registration Statement (Form S-8 No. 333-211918) pertaining to the Toll Brothers, Inc. Stock Incentive Plan for Non-Executive Directors (2016),

6. Registration Statement (Form S-8 No. 333-217628) pertaining to the Toll Brothers, Inc. Employee Stock Purchase Plan (2017),

7. Registration Statement (Form S-3 No. 333-222996) of Toll Brothers, Inc., Toll Corp., First Huntingdon Finance Corp., Toll Brothers Finance Corp., and the additional registrants named therein, and in the related Prospectus; and

8. Registration Statement (Form S-8 No. 333-232005) pertaining to the Toll Brothers, Inc. 2019 Omnibus Incentive Plan,

of our reports dated December 26, 2019 with respect to the consolidated financial statements of Toll Brothers, Inc. and the effectiveness of internal control over financial reporting of Toll Brothers, Inc., included in this Annual Report (Form 10-K) of Toll Brothers, Inc. for the year ended October 31, 2019.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania

December 26, 2019

EX-31.1

Exhibit 31.1

CERTIFICATION

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

1.    I have reviewed this Annual Report on Form 10-K 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: December 26, 2019

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Martin P. Connor, certify that:

1.    I have reviewed this Annual Report on Form 10-K 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: December 26, 2019

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 Annual Report on Form 10-K of Toll Brothers, Inc. (the “Company”) for the year ended October 31, 2019, 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: December 26, 2019

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 Annual Report on Form 10-K of Toll Brothers, Inc. (the “Company”) for the year ended October 31, 2019, 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: December 26, 2019

XML

Receivables, Prepaid Expenses and Other Assets

12 Months Ended

Oct. 31, 2019

Receivables, prepaid expenses and other assets [Abstract]

Receivables, prepaid expenses and other assets [Text Block]

5. Receivables, Prepaid Expenses, and Other Assets

Receivables, prepaid expenses, and other assets at October 31, 2019 and 2018, consisted of the following (amounts in thousands):

	2019		2018
Expected recoveries from insurance carriers and others	$	114,162	$	126,291
Improvement cost receivable	100,864		96,937
Escrow cash held by our captive title company	32,863		33,471
Properties held for rental apartment and commercial development	367,072		193,015
Prepaid expenses	26,041		23,065
Other	74,439		77,999
	$	715,441	$	550,778

See Note 7, “Accrued Expenses,” for additional information regarding the expected recoveries from insurance carriers and others.

As of October 31, 2019 and 2018, properties held for rental apartment and commercial development include $145.8 million and $19.7 million, respectively, of assets related to consolidated VIEs. See Note 4, “Investments in Unconsolidated Entities” for additional information regarding VIEs.

XML

Supplemental Disclosure to Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2015	Nov. 01, 2018	Nov. 02, 2017	Oct. 31, 2016
Cash flow information:
Interest paid, net of amount capitalized	$ 35,422	$ 20,812	$ 21,578
Income tax payment	141,681	215,092	119,852
Income tax refunds	4,344	3,101	2,776
Noncash activity:
Cost of inventory acquired through seller financing or municipal bonds, net	213,824	185,633	61,877
Financed portion of land sale			625
Reduction in inventory for our share of earnings in land purchased from unconsolidated entities and allocation of basis difference	(5,300)	(1,320)	11,760
Cost of inventory acquired through foreclosure		4,609
Reclassification of deferred income from inventory to accrued liabilities			3,520
Treasury Stock, Retired, Cost Method, Amount	0
Cost of Other Inventory Acquired	38,134	2,801
Reclassification of inventory to property, construction and office equipment			8,990
Increase (decrease) in unrecognized losses in defined benefit plans	4,138	(3,115)	(1,201)
Defined benefit retirement plan amendment	4,956
Deferred tax decrease related to stock-based compensation activity included in additional paid-in capital			5,232
Income tax (expense) benefit recognized in total comprehensive income	2,265	(1,141)	(880)
Noncash transfer of other assets to inventory	7,100	16,763
Transfer of inventory to investment in unconsolidated entities			72,757
Transfer of investment in unconsolidated entities to inventory			14,328
Transfer of other assets to investment in unconsolidated entities	44,139	60,971	1,308
Reclassification deferred income from accrued expenses to investment in unconsolidated entities		5,995
Increase in investments in unconsolidated entities for change in the fair value of debt guarantees	928	623	130
Miscellaneous (decreases) increases to investments in unconsolidated entities	(1,876)	1,776	5,117
Acquisition of a Business:
Fair value of assets purchased, excluding cash acquired	173,516		88,465
Liabilities Assumed	11,143		5,377
Payments to Acquire Businesses, Net of Cash Acquired	162,373		83,088
Cash and Cash Equivalents, at Carrying Value	1,286,014	1,182,195	712,829
Restricted Cash and Cash Equivalents	33,629	34,215	48,405
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	1,319,643	1,216,410	761,234				$ 785,469
Accounting Standards Update 2014-09 [Member]
Noncash activity:
Reclassification of Inventory to Property, Construction and Office Equipment, Net					$ 104,807
Net decrease in inventory and retained earnings for adoption of ASU 2014-09					8,989
Net increase in accrued expenses and decrease in retained earnings due to adoption of ASU 2014-09					6,541
Net decrease in investment in unconsolidated entities and retained earnings due to adoption of ASU 2014-09					$ 2,457
Treasury Stock [Member]
Noncash activity:
Treasury Stock, Retired, Cost Method, Amount	$ 895,517

XML

Supplemental Guarantor Information (Level 4 CF) (Details 3) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jul. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Cash flow (used in) provided by operating activities:
Net cash provided by (used in) operating activities		$ 437,661	$ 588,211	$ 861,698
Cash flow from investing activities:
Purchase of property and equipment - net		(86,971)	(28,232)	(28,872)
Sale and redemption of marketable securities and restricted investments - net				18,049
Payments to Acquire Equity Method Investments		(56,560)	(27,491)	(122,334)
Return of investments in unconsolidated entities		147,927	133,190	195,505
Investment in foreclosed real estate and distressed loans		(731)	(966)	(710)
Return of investments in foreclosed real estate and distressed loans		3,147	4,765	13,765
Proceeds from Sale of Productive Assets		79,647
Acquisition of a business, net of cash acquired		(162,373)		(83,088)
Investments paid intercompany		0		0
Intercompany investing activites (to) from consolidated entities		0	0	0
Net cash (used in) provided by investing activities		(75,914)	81,266	(7,685)
Cash flow from financing activities:
Proceeds from issuance of senior notes		400,000	400,000	455,483
Proceeds from loans payable		2,699,028	2,630,835	1,621,043
Debt issuance costs		(6,180)	(3,531)	(4,449)
Repayments of Notes Payable		(2,471,616)	(2,690,164)	(1,999,357)
Repayments of senior notes		(600,000)		(687,500)
(Payments) proceeds from stock-based benefit plans		17,369	13,392	66,000
Purchase of treasury stock		(233,523)	(503,159)	(290,881)
Payments of Dividends		(63,641)	(61,704)	(38,587)
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees			0
Receipts (payments) related to noncontrolling interest, net		49	30
Investment received intercompany		0		0
Intercompany financing advances (to) from consolidated entities		0	0	0
Net cash provided by (used in) financing activities		(258,514)	(214,301)	(878,248)
Net increase (decrease) in cash and cash equivalents		103,233	455,176	(24,235)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period	$ 761,234	1,216,410	761,234	785,469
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period		1,319,643	1,216,410	761,234
Toll Brothers Inc. [Member]
Cash flow (used in) provided by operating activities:
Net cash provided by (used in) operating activities		76,828	(4,270)	200,721
Cash flow from investing activities:
Purchase of property and equipment - net
Sale and redemption of marketable securities and restricted investments - net				10,631
Payments to Acquire Equity Method Investments
Return of investments in unconsolidated entities
Investment in foreclosed real estate and distressed loans
Return of investments in foreclosed real estate and distressed loans
Proceeds from Sale of Productive Assets
Acquisition of a business, net of cash acquired
Investments paid intercompany
Intercompany investing activites (to) from consolidated entities		202,967	555,741	51,071
Net cash (used in) provided by investing activities		202,967	555,741	61,702
Cash flow from financing activities:
Proceeds from issuance of senior notes
Proceeds from loans payable
Debt issuance costs
Repayments of Notes Payable
Repayments of senior notes
(Payments) proceeds from stock-based benefit plans		17,369	13,392	66,000
Purchase of treasury stock		(233,523)	(503,159)	(290,881)
Payments of Dividends		(63,641)	(61,704)	(38,587)
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees
Receipts (payments) related to noncontrolling interest, net
Investment received intercompany
Intercompany financing advances (to) from consolidated entities
Net cash provided by (used in) financing activities		(279,795)	(551,471)	(263,468)
Net increase (decrease) in cash and cash equivalents		0	0	(1,045)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period	0	0	0	1,045
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period		0	0	0
Subsidiary Issuer [Member]
Cash flow (used in) provided by operating activities:
Net cash provided by (used in) operating activities		(8,413)	5,439	9,955
Cash flow from investing activities:
Purchase of property and equipment - net
Sale and redemption of marketable securities and restricted investments - net
Payments to Acquire Equity Method Investments
Return of investments in unconsolidated entities
Investment in foreclosed real estate and distressed loans
Return of investments in foreclosed real estate and distressed loans
Proceeds from Sale of Productive Assets
Acquisition of a business, net of cash acquired
Investments paid intercompany
Intercompany investing activites (to) from consolidated entities		212,005	(401,908)	226,511
Net cash (used in) provided by investing activities		212,005	(401,908)	226,511
Cash flow from financing activities:
Proceeds from issuance of senior notes		400,000	400,000	455,483
Proceeds from loans payable
Debt issuance costs		(3,592)	(3,531)	(4,449)
Repayments of Notes Payable
Repayments of senior notes		(600,000)		(687,500)
(Payments) proceeds from stock-based benefit plans
Purchase of treasury stock
Payments of Dividends
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees
Receipts (payments) related to noncontrolling interest, net
Investment received intercompany
Intercompany financing advances (to) from consolidated entities
Net cash provided by (used in) financing activities		(203,592)	396,469	(236,466)
Net increase (decrease) in cash and cash equivalents		0	0	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period	0	0	0	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period		0	0	0
Guarantor Subsidiaries [Member]
Cash flow (used in) provided by operating activities:
Net cash provided by (used in) operating activities		559,660	521,640	294,302
Cash flow from investing activities:
Purchase of property and equipment - net		(86,936)	(28,064)	(20,439)
Sale and redemption of marketable securities and restricted investments - net
Payments to Acquire Equity Method Investments		(11,202)	(1,676)	(3,744)
Return of investments in unconsolidated entities		3,304	29,242	58,610
Investment in foreclosed real estate and distressed loans
Return of investments in foreclosed real estate and distressed loans
Proceeds from Sale of Productive Assets		58,154
Acquisition of a business, net of cash acquired		(162,373)		(83,088)
Investments paid intercompany		(71,631)		(45,000)
Intercompany investing activites (to) from consolidated entities
Net cash (used in) provided by investing activities		(270,684)	(498)	(93,661)
Cash flow from financing activities:
Proceeds from issuance of senior notes
Proceeds from loans payable		300,000	590,000	250,068
Debt issuance costs		(2,588)
Repayments of Notes Payable		(72,588)	(679,184)	(538,527)
Repayments of senior notes
(Payments) proceeds from stock-based benefit plans
Purchase of treasury stock
Payments of Dividends
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees
Receipts (payments) related to noncontrolling interest, net
Investment received intercompany
Intercompany financing advances (to) from consolidated entities		(443,577)	45,205	39,082
Net cash provided by (used in) financing activities		(218,753)	(43,979)	(249,377)
Net increase (decrease) in cash and cash equivalents		70,223	477,163	(48,736)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period	534,704	1,011,867	534,704	583,440
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period		1,082,090	1,011,867	534,704
Non-Guarantor Subsidiaries [Member]
Cash flow (used in) provided by operating activities:
Net cash provided by (used in) operating activities		(180,837)	56,301	366,144
Cash flow from investing activities:
Purchase of property and equipment - net		(35)	(168)	(8,433)
Sale and redemption of marketable securities and restricted investments - net				7,418
Payments to Acquire Equity Method Investments		(45,358)	(25,815)	(118,590)
Return of investments in unconsolidated entities		144,623	103,948	136,895
Investment in foreclosed real estate and distressed loans		(731)	(966)	(710)
Return of investments in foreclosed real estate and distressed loans		3,147	4,765	13,765
Proceeds from Sale of Productive Assets		21,493
Acquisition of a business, net of cash acquired
Investments paid intercompany
Intercompany investing activites (to) from consolidated entities
Net cash (used in) provided by investing activities		123,139	81,764	30,345
Cash flow from financing activities:
Proceeds from issuance of senior notes
Proceeds from loans payable		2,399,028	2,040,835	1,370,975
Debt issuance costs
Repayments of Notes Payable		(2,399,028)	(2,010,980)	(1,460,830)
Repayments of senior notes
(Payments) proceeds from stock-based benefit plans
Purchase of treasury stock
Payments of Dividends
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees			(6,000)
Receipts (payments) related to noncontrolling interest, net		49	30
Investment received intercompany		71,628		45,000
Intercompany financing advances (to) from consolidated entities		19,031	(183,937)	(326,088)
Net cash provided by (used in) financing activities		90,708	(160,052)	(370,943)
Net increase (decrease) in cash and cash equivalents		33,010	(21,987)	25,546
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period	226,530	204,543	226,530	200,984
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period		237,553	204,543	226,530
Eliminations [Member]
Cash flow (used in) provided by operating activities:
Net cash provided by (used in) operating activities		(9,577)	9,101	(9,424)
Cash flow from investing activities:
Purchase of property and equipment - net
Sale and redemption of marketable securities and restricted investments - net
Payments to Acquire Equity Method Investments
Return of investments in unconsolidated entities
Investment in foreclosed real estate and distressed loans
Return of investments in foreclosed real estate and distressed loans
Proceeds from Sale of Productive Assets
Acquisition of a business, net of cash acquired
Investments paid intercompany		71,631		45,000
Intercompany investing activites (to) from consolidated entities		(414,972)	(153,833)	(277,582)
Net cash (used in) provided by investing activities		(343,341)	(153,833)	(232,582)
Cash flow from financing activities:
Proceeds from issuance of senior notes
Proceeds from loans payable
Debt issuance costs
Repayments of Notes Payable
Repayments of senior notes
(Payments) proceeds from stock-based benefit plans
Purchase of treasury stock
Payments of Dividends
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees			6,000
Receipts (payments) related to noncontrolling interest, net
Investment received intercompany		(71,628)		(45,000)
Intercompany financing advances (to) from consolidated entities		424,546	138,732	287,006
Net cash provided by (used in) financing activities		352,918	144,732	242,006
Net increase (decrease) in cash and cash equivalents		0	0	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period	$ 0	0	0	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period		$ 0	$ 0	$ 0

XML

Stockholders' Equity

12 Months Ended

Oct. 31, 2019

Stockholders' Equity Note [Abstract]

Stock Issuance and Stock Repurchase Program

Stockholders’ Equity

Our authorized capital stock consists of 400 million shares of common stock, $0.01 par value per share (“common stock”), and 15 million shares of preferred stock, $0.01 par value per share. At October 31, 2019, we had 140.9 million shares of common stock issued and outstanding, 6.7 million shares of common stock reserved for outstanding stock options and restricted stock units, 7.7 million shares of common stock reserved for future stock option and award issuances, and 407,000 shares of common stock reserved for issuance under our employee stock purchase plan. As of October 31, 2019, no shares of preferred stock have been issued.

Cash Dividends

On February 21, 2017, our Board of Directors approved the initiation of quarterly cash dividends to shareholders. During the fiscal years ended October 31, 2019 and October 31, 2018, we declared and paid aggregate cash dividends of $0.44 and $0.41 per share, respectively, to our shareholders. Subsequent to October 31, 2019, we declared a quarterly cash dividend of $0.11 per share which will be paid on January 24, 2020 to shareholders of record on the close of business on January 10, 2020.

Stock Repurchase Program

In each year since fiscal 2017, our Board of Directors has renewed its authorization to repurchase up to 20 million shares of our common stock in open market transactions, privately negotiated transactions (including accelerated share repurchases), issuer tender offers or other financial arrangements or transactions for general corporate purposes, including to obtain shares for the Company’s equity award and other employee benefit plans. Most recently, on December 11, 2019, our Board of Directors authorized the repurchase of 20 million shares of our common stock and terminated, effective the same date, the existing

authorization that had been in effect since December 12, 2018. The Board of Directors did not fix any expiration date for this repurchase program.

The following table provides information about the share repurchase programs for the fiscal years ended October 31, 2019, 2018, and 2017:

	2019		2018		2017
Number of shares purchased (in thousands)	6,619		12,108		7,694
Average price per share	$	35.28	$	41.56	$	37.81
Remaining authorization at October 31 (in thousands)	13,953		10,989		8,144

Subsequent to October 31, 2019, we repurchased approximately 3.6 million shares of our common stock at an average price of $39.58 per share, substantially all of which were purchased under the repurchase program authorized by our Board of Directors on December 11, 2019.

Transfer Restriction

On March 17, 2010, our Board of Directors adopted a Certificate of Amendment to the Second Restated Certificate of Incorporation of the Company (the “Certificate of Amendment”). The Certificate of Amendment includes an amendment approved by our stockholders at the 2010 Annual Meeting of Stockholders that restricts certain transfers of our common stock. The Certificate of Amendment’s transfer restrictions generally restrict any direct or indirect transfer of our common stock if the effect would be to increase the direct or indirect ownership of any Person (as defined in the Certificate of Amendment) from less than 4.95% to 4.95% or more of our common stock or increase the ownership percentage of a Person owning or deemed to own 4.95% or more of our common stock. Any direct or indirect transfer attempted in violation of this restriction would be void as of the date of the prohibited transfer as to the purported transferee.

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Stockholders' Equity (Tables)

12 Months Ended

Oct. 31, 2019

Stock Repurchase Program [Abstract]

Stock repurchase program

The following table provides information about the share repurchase programs for the fiscal years ended October 31, 2019, 2018, and 2017:

	2019		2018		2017
Number of shares purchased (in thousands)	6,619		12,108		7,694
Average price per share	$	35.28	$	41.56	$	37.81
Remaining authorization at October 31 (in thousands)	13,953		10,989		8,144

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Commitments and Contingencies (Details 1) - Loan Origination Commitments [Member] - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018
Company's mortgage commitments
Unused Commitments to Extend Credit	$ 1,930,606	$ 1,943,929
Investor commitments to purchase	774,225	777,463
Interest Rate Lock Commitments [Member]
Company's mortgage commitments
Unused Commitments to Extend Credit	565,634	614,255
Investor commitments to purchase	565,634	614,255
Non IRLC [Member]
Company's mortgage commitments
Unused Commitments to Extend Credit	1,364,972	1,329,674
Mortgage loans receivable [Member]
Company's mortgage commitments
Investor commitments to purchase	$ 208,591	$ 163,208

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Employee Retirement and Deferred Compensation Plans (Details Textual) $ in Millions	12 Months Ended
	Oct. 31, 2019 USD ($)	Oct. 31, 2018 USD ($)	Oct. 31, 2017 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Cost	$ 14.1	$ 12.6	$ 12.3
Number of Unfunded Defined Benefit Retirement Plans	2
Normal retirement age	58
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	2.61%	4.06%	3.19%
Defined Benefit Plan Unfunded Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Accrued for obligations under the plan	$ 31.1	$ 27.0

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Receivables, Prepaid Expenses and Other Assets (Tables)

12 Months Ended

Oct. 31, 2019

Receivables, prepaid expenses and other assets [Abstract]

Receivables, prepaid expenses, and other assets [Table Text Block]

Receivables, prepaid expenses, and other assets at October 31, 2019 and 2018, consisted of the following (amounts in thousands):

	2019		2018
Expected recoveries from insurance carriers and others	$	114,162	$	126,291
Improvement cost receivable	100,864		96,937
Escrow cash held by our captive title company	32,863		33,471
Properties held for rental apartment and commercial development	367,072		193,015
Prepaid expenses	26,041		23,065
Other	74,439		77,999
	$	715,441	$	550,778

See Note 7, “Accrued Expenses,” for additional information regarding the expected recoveries from insurance carriers and others.

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Cash flow provided by operating activities:
Net income	$ 590,007	$ 748,151	$ 535,495
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	72,149	25,259	25,361
Stock-based compensation	26,180	28,312	28,466
Income from unconsolidated entities	(24,868)	(85,240)	(116,066)
Distributions of earnings from unconsolidated entities	31,799	86,099	134,291
Income from distressed loans and foreclosed real estate	(947)	(1,551)	(4,937)
Deferred tax provision	102,764	(21,930)	217,864
Change in deferred tax valuation allowances			(32,154)
Inventory impairments and write-offs	42,360	35,156	14,794
Gain (Loss) on Disposition of Business	(36,277)
Other	(1,042)	3,111	1,395
Changes in operating assets and liabilities
Decrease (increase) in inventory	(40,236)	(143,598)	129,666
Origination of mortgage loans	(1,611,496)	(1,449,494)	(1,217,274)
Sale of mortgage loans	1,565,944	1,410,627	1,332,207
(Increase) decrease in receivables, prepaid expenses and other assets	(185,261)	(99,604)	(60,944)
Increase in Income Taxes Receivable	(20,791)
Increase in customer deposits	14,041	(718)	37,967
Increase (decrease) in accounts payable and accrued expenses	(64,518)	57,927	(140,463)
Increase (decrease) in income taxes payable	(22,147)	(4,296)	(23,970)
Net cash provided by (used in) operating activities	437,661	588,211	861,698
Cash flow provided by (used in) investing activities:
Purchase of property and equipment - net	(86,971)	(28,232)	(28,872)
Sale and redemption of marketable securities and restricted investments - net			18,049
Investment in unconsolidated entities	(56,560)	(27,491)	(122,334)
Return of investments in unconsolidated entities	147,927	133,190	195,505
Investment in foreclosed real estate and distressed loans	(731)	(966)	(710)
Return of investments in foreclosed real estate and distressed loans	3,147	4,765	13,765
Proceeds from Sale of Productive Assets	79,647
Acquisition of a business, net of cash acquired	(162,373)		(83,088)
Net cash (used in) provided by investing activities	(75,914)	81,266	(7,685)
Cash flow (used in) provided by financing activities:
Proceeds from issuance of senior notes	400,000	400,000	455,483
Proceeds from loans payable	2,699,028	2,630,835	1,621,043
Debt issuance costs	(6,180)	(3,531)	(4,449)
Repayments of Notes Payable	(2,471,616)	(2,690,164)	(1,999,357)
Repayments of senior notes	(600,000)		(687,500)
(Payments) proceeds from stock-based benefit plans	17,369	13,392	66,000
Purchase of treasury stock	(233,523)	(503,159)	(290,881)
Payments of Dividends	(63,641)	(61,704)	(38,587)
Receipts (payments) related to noncontrolling interest, net	49	30
Net cash provided by (used in) financing activities	(258,514)	(214,301)	(878,248)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect	103,233	455,176	(24,235)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period	1,216,410	761,234	785,469
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period	$ 1,319,643	$ 1,216,410	$ 761,234

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Employee Retirement and Deferred Compensation Plans (Tables)

12 Months Ended

Oct. 31, 2019

Retirement Benefits [Abstract]

Schedule of Net Benefit Costs

Information related to our retirement plans for each of the fiscal years ended October 31, 2019, 2018, and 2017, is as follows (amounts in thousands):

	2019			2018			2017
Plan costs:
Service cost	$	403		$	568		$	619
Interest cost	1,416			1,198			1,142
Amortization of prior service cost	506			936			969
Amortization of unrecognized losses	—			17			137
	$	2,325		$	2,719		$	2,867
Projected benefit obligation:
Beginning of year	$	35,515		$	38,222		$	38,980
Plan amendments adopted during year	4,956
Service cost	403			568			619
Interest cost	1,416			1,198			1,142
Benefit payments	(1,358		)	(1,358		)	(1,318		)
Change in unrecognized gain/loss	4,138			(3,115		)	(1,201		)
Projected benefit obligation, end of year	$	45,070		$	35,515		$	38,222
Unamortized prior service cost:
Beginning of year	$	870		$	1,806		$	2,775
Plan amendments adopted during year	4,956
Amortization of prior service cost	(506		)	(936		)	(969		)
Unamortized prior service cost, end of year	$	5,320		$	870		$	1,806
Accumulated unrecognized (loss) gain, October 31	$	(2,567	)	$	1,571		$	(1,560	)
Accumulated benefit obligation, October 31	$	45,070		$	35,515		$	38,222
Accrued benefit obligation, October 31	$	45,070		$	35,515		$	38,222

Schedule of Expected Benefit Payments [Table Text Block]

The table below provides, based upon the estimated retirement dates of the participants in the retirement plans, the amounts of benefits we would be required to pay in each of the next five fiscal years and for the five fiscal years ended October 31, 2029 in the aggregate (in thousands):

Year ending October 31,	Amount
2020	$	1,687
2021	$	2,526
2022	$	2,785
2023	$	3,046
2024	$	3,077
November 1, 2024 – October 31, 2029	$	16,878

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Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018
ASSETS
Cash and cash equivalents	$ 1,286,014	$ 1,182,195
Inventory	7,873,048	7,598,219
Property, construction and office equipment, net	273,412	193,281
Receivables, prepaid expenses, and other assets	715,441	550,778
Mortgage loans held for sale	218,777	170,731
Customer deposits held in escrow	74,403	117,573
Investments in unconsolidated entities	366,252	431,813
Income Taxes Receivable	20,791	0
Total assets	10,828,138	10,244,590
Liabilities:
Loans payable	1,111,449	686,801
Senior notes	2,659,898	2,861,375
Mortgage company loan facility	150,000	150,000
Customer deposits	385,596	410,864
Accounts payable	348,599	362,098
Accrued expenses	950,932	973,581
Income taxes payable	102,971	30,959
Total liabilities	5,709,445	5,475,678
Stockholders' equity:
Preferred stock, none issued	0	0
Common stock, 152,937 and 177,937 shares issued at October 31, 2019 and October 31, 2018, respectively	1,529	1,779
Additional paid-in capital	726,879	727,053
Retained earnings	4,774,422	5,161,551
Treasury stock, at cost -- 11,999 shares and 31,774 shares at October 31, 2019 and October 31, 2018, respectively	(425,183)	(1,130,878)
Accumulated other comprehensive loss	(5,831)	694
Total stockholders' equity	5,071,816	4,760,199
Noncontrolling interest	46,877	8,713
Total equity	5,118,693	4,768,912
Total liabilities and stockholders' equity	10,828,138	$ 10,244,590
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity, Consolidated, Carrying Amount, Assets	$ 125,000

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Investments in Unconsolidated Entities (Details Textual)	1 Months Ended		3 Months Ended								9 Months Ended	12 Months Ended
	Dec. 31, 2019 USD ($)	Nov. 30, 2019 USD ($)	Oct. 31, 2019 USD ($) joint_ventures rental_units	Jul. 31, 2019 USD ($)	Apr. 30, 2019 USD ($)	Jan. 31, 2019 USD ($)	Oct. 31, 2018 USD ($) joint_ventures	Jul. 31, 2018 USD ($)	Apr. 30, 2018 USD ($)	Jan. 31, 2018 USD ($)	Jul. 31, 2019 USD ($)	Oct. 31, 2019 USD ($) joint_ventures home_sites rental_units Homes_sold	Oct. 31, 2018 USD ($) joint_ventures home_sites Homes_sold	Oct. 31, 2017 USD ($) joint_ventures	Dec. 20, 2019 USD ($)	Dec. 19, 2019 USD ($)	Nov. 07, 2019 USD ($)	Jun. 25, 2019 USD ($)	May 10, 2018 USD ($)	Apr. 30, 2017 USD ($)
Schedule of Equity Method Investments [Line Items]
Number Of Entities That Are Considered Variable Interest Entities | joint_ventures			18				11					18	11
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Income (loss) from unconsolidated entities												$ 24,868,000	$ 85,240,000	$ 116,066,000
Equity Method Investment, Summarized Financial Information, Revenue												757,042,000	640,267,000	889,309,000
Investments in unconsolidated entities			$ 366,252,000				$ 431,813,000					366,252,000	431,813,000
Revenue from Contract with Customer, Including Assessed Tax							$ 2,455,238,000	$ 1,913,353,000	$ 1,599,199,000	$ 1,175,468,000		7,223,966,000	7,143,258,000	5,815,058,000
Funding Commitments to Joint Ventures			38,796,000									38,796,000
Line of Credit Facility, Maximum Borrowing Capacity			1,628,150,000									1,628,150,000
Amounts borrowed under commitments			$ 1,239,493,000									$ 1,239,493,000
Number of Joint Ventures | joint_ventures			41									41
Land sales, net												$ 0	$ 6,331,000	8,621,000
Equity Method Investee [Member]
Schedule of Equity Method Investments [Line Items]
Number Of Unconsolidated Entities That Are Considered Variable Interest Entities | joint_ventures			13				10					13	10
Land Development Joint Ventures [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Home sites sold | home_sites												934	986
Line of Credit Facility, Maximum Borrowing Capacity			$ 100,859,000									$ 100,859,000
Amounts borrowed under commitments			88,252,000									$ 88,252,000
rental property joint ventures suburban Philadelphia and Jersey City NJ [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Long-term Debt														$ 189,000,000.0
Debt Instrument, Term														10 years
Amounts borrowed under commitments																				$ 166,300,000
Rental Property Joint Ventures sold fiscal 2018 [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Assets, Fair Value Disclosure																			$ 477,500,000
Land development joint venture Houston TX [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of home sites included in acquisition | home_sites												263
rental property joint ventures fiscal 2018 new [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity							$ 166,100,000						$ 166,100,000
Amounts borrowed under commitments			156,100,000									$ 156,100,000
Rental Property Joint Venture Phoenixville, PA [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage												25.00%
Assets, Fair Value Disclosure																		$ 77,800,000
Home Building Joint Ventures, Total [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Home sites sold | Homes_sold												186	100
Equity Method Investment, Summarized Financial Information, Revenue												$ 374,600,000	$ 148,000,000.0
Line of Credit Facility, Maximum Borrowing Capacity			133,453,000									133,453,000
Amounts borrowed under commitments			$ 133,453,000									$ 133,453,000
Rental Joint Ventures, including Trusts i and II [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of Real Estate Properties | joint_ventures			25									25
Line of Credit Facility, Maximum Borrowing Capacity			$ 1,393,838,000									$ 1,393,838,000
Amounts borrowed under commitments			$ 1,017,788,000									$ 1,017,788,000
Toll Brothers Realty Trust [Member] | Co-venturer [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Ownership Percentage			33.30%									33.30%
Toll Brothers Realty Trust [Member] | Management [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Ownership Percentage			33.30%									33.30%
Home Building Joint Venture Metro New York Five [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity			$ 236,500,000									$ 236,500,000
Rental Property Joint Venture Metro New York [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Long-term Debt			110,000,000.0	$ 80,000,000.0							$ 80,000,000.0	$ 110,000,000.0
Debt Instrument, Term												3 years
Line of Credit Facility, Maximum Borrowing Capacity			120,000,000.0									$ 120,000,000.0
Rental Property Joint Ventures new fiscal 2019 [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity			340,100,000									340,100,000
Amounts borrowed under commitments			$ 39,300,000									$ 39,300,000
rental property joint ventures suburban Philadelphia and Jersey City NJ [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Ownership Percentage			25.00%									25.00%								50.00%
Equity Method Investment, Realized Gain (Loss) on Disposal														$ 26,700,000
Number of Real Estate Properties | joint_ventures														2
Proceeds from Sale of Equity Method Investments														$ 54,900,000
Rental Property Joint Ventures sold fiscal 2018 [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Equity Method Investment, Realized Gain (Loss) on Disposal													$ 67,200,000
Number of Real Estate Properties | joint_ventures							3						3
Proceeds from Sale of Equity Method Investments													$ 79,100,000
rental property joint ventures fiscal 2018 new [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in unconsolidated entities			$ 65,600,000									$ 65,600,000
Number of Real Estate Properties | joint_ventures							4						4
Rental Property Joint Ventures Boston MA, San Diego CA and Miami FL [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of Real Estate Properties | joint_ventures							4						4
Rental Property Joint Ventures new fiscal 2019 [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in unconsolidated entities			$ 48,800,000									$ 48,800,000
Number of Real Estate Properties | joint_ventures			5									5
Land sales, net											$ 9,300,000
Single Family Build to Rent JV [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in unconsolidated entities			$ 1,000,000.0									$ 1,000,000.0
Single Family Build to Rent JV [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Funding Commitments to Joint Ventures			60,000,000.0									60,000,000.0
Rental Property Joint Venture Metro New York [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in unconsolidated entities			$ 21,000,000.0									$ 21,000,000.0
Ownership Percentage			50.00%									50.00%
Land Development Joint Ventures [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Income (loss) from unconsolidated entities												$ 6,160,000	$ 3,392,000	13,007,000
Equity Method Investment, Summarized Financial Information, Revenue												261,677,000	351,397,000	288,440,000
Other than Temporary Impairment Losses, Investments												1,000,000.0	6,000,000.0
Investments in unconsolidated entities			$ 110,306,000				$ 176,593,000					$ 110,306,000	$ 176,593,000
Number of Joint Ventures | joint_ventures			8									8
Land Development Joint Ventures [Member] | Equity Method Investee [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Home sites sold | home_sites												293	259
Equity Method Investment, Summarized Financial Information, Revenue												$ 137,100,000	$ 153,200,000
Equity Method Investment, Deferred Gain on Sale													1,700,000
Land Development Joint Ventures [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Funding Commitments to Joint Ventures			$ 28,586,000									28,586,000
Toll Brothers Realty Trust [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in unconsolidated entities			$ 0									$ 0
Ownership Percentage			33.30%									33.30%
Equity Method Investment, Realized Gain (Loss) on Disposal												$ 3,900,000	27,700,000
Partners' Capital Account, Distributions												0
Property Management Fee Revenue												1,000,000.0	2,000,000.0	2,000,000.0
Gibraltar Land Banking & Development Joint Ventures [Member] [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in unconsolidated entities			$ 20,500,000									$ 20,500,000
Ownership Percentage			25.00%									25.00%
Number of Joint Ventures | joint_ventures			8									8
Number of JVs formed in the period | joint_ventures												2
Gibraltar Land Banking & Development Joint Ventures [Member] [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Funding Commitments to Joint Ventures			$ 100,000,000.0									$ 100,000,000.0
Land development joint venture Houston TX [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in unconsolidated entities			$ 5,900,000									$ 5,900,000
Ownership Percentage			50.00%									50.00%
Rental Property Joint Venture Phoenixville, PA [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Equity Method Investment, Realized Gain (Loss) on Disposal												$ 3,800,000
Proceeds from Sale of Equity Method Investments												$ 7,400,000
Subsequent Event [Member] | Rental Property Joint Venture State College PA [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity															$ 79,500,000
Subsequent Event [Member] | Rental Property Joint Venture Dallas TX [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity																	$ 42,000,000.0
Subsequent Event [Member] | Rental Property Joint Ventures Northern New Jersey [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity																$ 76,000,000.0
Subsequent Event [Member] | Home Building Joint Venture Metro New York Five [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Amounts borrowed under commitments		$ 76,600,000
Guarantees, Repayment and Carry Cost, Maximum		76,600,000
Subsequent Event [Member] | Rental Property Joint Venture State College PA [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in unconsolidated entities															$ 12,900,000
Proceeds from Sale of Real Estate	$ 17,900,000
Subsequent Event [Member] | Rental Property Joint Venture State College PA [Member] | Co-venturer [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Ownership Percentage															70.00%
Subsequent Event [Member] | Rental Property Joint Venture Dallas TX [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in unconsolidated entities																	$ 11,900,000
Proceeds from Sale of Real Estate		7,700,000
Subsequent Event [Member] | Rental Property Joint Venture Dallas TX [Member] | Co-venturer [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Ownership Percentage																	50.00%
Subsequent Event [Member] | Rental Property Joint Ventures Northern New Jersey [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Equity Method Investment, Realized Gain (Loss) on Disposal	10,000,000.0
Proceeds from Sale of Equity Method Investments	16,800,000
In Planning Phase [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of Units in Real Estate Property | rental_units			10,900									10,900
Lease up Stage [Member] | Rental Joint Ventures, including Trusts i and II [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of Units in Real Estate Property | rental_units			1,700									1,700
Occupied or Ready for Occupancy [Member] | Rental Joint Ventures, including Trusts i and II [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of Units in Real Estate Property | rental_units			2,000									2,000
Asset under Construction [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of Units in Real Estate Property | rental_units			800									800
Asset under Construction [Member] | Rental Joint Ventures, including Trusts i and II [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of Units in Real Estate Property | rental_units			4,100									4,100
Line of Credit [Member] | Rental Property Joint Ventures sold fiscal 2018 [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity																			$ 239,600,000
Line of Credit [Member] | Rental Property Joint Venture Phoenixville, PA [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity																		$ 47,000,000.0
Rental Joint Ventures, including Trusts i and II [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of Real Estate Properties | joint_ventures			5									5
Rental Property Joint Venture State College PA [Member] | Subsequent Event [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Payments to Acquire and Develop Real Estate	32,000,000.0
rental property joint ventures fiscal 2018 new [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Payments to Acquire and Develop Real Estate													140,000,000.0
Rental Property Joint Ventures new fiscal 2019 [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Payments to Acquire and Develop Real Estate												$ 145,100,000
Land development joint venture Houston TX [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Expected Percentage Of Homes To Be Sold To Each Joint Venture Partner			50.00%
Rental Property Joint Ventures Boston MA, San Diego CA and Miami FL [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Real Estate Investment Property, at Cost			$ 79,600,000									$ 79,600,000
Rental Property Joint Venture Woburn MA [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Real Estate Investment Property, at Cost							15,900,000						$ 15,900,000
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage													85.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners			15.00%									15.00%
Rental Property Joint Venture Dallas TX [Member] | Subsequent Event [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Payments to Acquire and Develop Real Estate		19,000,000.0
Variable Interest Entity, Primary Beneficiary [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Variable Interest Entity, Consolidated, Carrying Amount, Assets			$ 125,000,000.0									$ 125,000,000.0
Variable Interest Entity, Primary Beneficiary [Member] | Rental Joint Ventures, including Trusts i and II [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Variable Interest Entity, Consolidated, Carrying Amount, Assets			145,800,000				19,700,000					145,800,000	$ 19,700,000
Noncontrolling Interest in Variable Interest Entity			41,000,000.0				$ 2,800,000					41,000,000.0	2,800,000
Variable Interest Entity, Primary Beneficiary [Member] | Rental Property Joint Ventures Boston MA, San Diego CA and Miami FL [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Noncontrolling Interest in Variable Interest Entity			37,900,000									37,900,000
Variable Interest Entity, Primary Beneficiary [Member] | Rental Property Joint Venture Woburn MA [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Variable Interest Entity, Consolidated, Carrying Amount, Assets			20,800,000									20,800,000
Noncontrolling Interest in Variable Interest Entity			3,100,000									3,100,000
Land [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Revenue from Contract with Customer, Including Assessed Tax			$ 86,956,000	$ 8,721,000	$ 4,037,000	$ 43,873,000						143,587,000	0	$ 0
Land [Member] | rental property joint ventures fiscal 2018 new [Member] | Co-venturer [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Revenue from Contract with Customer, Including Assessed Tax													$ 80,300,000
Land [Member] | Rental Property Joint Ventures new fiscal 2019 [Member] | Co-venturer [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Revenue from Contract with Customer, Including Assessed Tax												$ 110,000,000.0
Land [Member] | Subsequent Event [Member] | Rental Property Joint Venture State College PA [Member] | Co-venturer [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Revenue from Contract with Customer, Including Assessed Tax	$ 22,200,000
Land [Member] | Subsequent Event [Member] | Rental Property Joint Venture Dallas TX [Member] | Co-venturer [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Revenue from Contract with Customer, Including Assessed Tax		$ 9,200,000
Minimum [Member] | rental property joint ventures fiscal 2018 new [Member] | Co-venturer [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Ownership Percentage							50.00%						50.00%
Minimum [Member] | Rental Property Joint Ventures new fiscal 2019 [Member] | Co-venturer [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Ownership Percentage			63.50%									63.50%
Minimum [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Rental Property Joint Ventures new fiscal 2019 [Member] | Co-venturer [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Ownership Percentage			50.00%									50.00%
Maximum [Member] | rental property joint ventures fiscal 2018 new [Member] | Co-venturer [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Ownership Percentage							75.00%						75.00%
Maximum [Member] | Rental Property Joint Ventures new fiscal 2019 [Member] | Co-venturer [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Ownership Percentage			75.00%									75.00%
Maximum [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Rental Property Joint Ventures new fiscal 2019 [Member] | Co-venturer [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Ownership Percentage			98.00%									98.00%
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity			$ 1,530,000,000									$ 1,530,000,000
Amounts borrowed under commitments			1,140,000,000									1,140,000,000
Maximum repapyment and carry cost guarantee obligation for borrowings by JV			239,600,000									239,600,000
Guarantees, Repayment and Carry Cost, Maximum			$ 299,100,000									$ 299,100,000
Indirect Guarantee of Indebtedness [Member] | Subsequent Event [Member] | Rental Property Joint Venture State College PA [Member] | Equity Method Investee [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Guarantor Obligations, Maximum Exposure, Undiscounted															$ 79,500,000
Indirect Guarantee of Indebtedness [Member] | Subsequent Event [Member] | Rental Property Joint Venture Dallas TX [Member] | Equity Method Investee [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Guarantor Obligations, Maximum Exposure, Undiscounted																	$ 42,000,000.0

XML

Acquisition (Detail Textuals)	1 Months Ended	12 Months Ended
	Nov. 30, 2016 USD ($) communities home_sites	Oct. 31, 2019 USD ($) communities home_sites luxury_homes	Oct. 31, 2018 USD ($)	Oct. 31, 2017 USD ($)	May 20, 2019 USD ($) home_sites	Nov. 07, 2016 USD ($) home_sites
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired		$ 162,373,000		$ 83,088,000
Number of Homes to be Delivered | luxury_homes		6,266
Sales Value of Outstanding Deliver Homes		$ 5,260,000,000
Sharp Residential [Member]
Business Acquisition [Line Items]
Business Acquisition, Name of Acquired Entity		Sharp Residential, LLC
Sabal Homes [Member]
Business Acquisition [Line Items]
Business Acquisition, Name of Acquired Entity		Sabal Homes LLC
Sharp Residential and Sabal Homes [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired		$ 162,400,000
Number of home sites included in acquisition | home_sites		2,550
Number of Homes to be Delivered | home_sites					204
Sales Value of Outstanding Deliver Homes					$ 96,100,000
Average Sales Price of Backlog					$ 471,100
Business acquisition, number of selling communities | communities		22
Coleman Holdings LLC [Member]
Business Acquisition [Line Items]
Business Acquisition, Name of Acquired Entity	Coleman Real Estate Holdings, LLC
Payments to Acquire Businesses, Net of Cash Acquired	$ 83,100,000
Number of home sites included in acquisition | home_sites	1,750
Number of Homes to be Delivered | home_sites						128
Sales Value of Outstanding Deliver Homes						$ 38,800,000
Average Sales Price of Backlog						$ 303,000
Business acquisition, number of selling communities | communities	15

XML

Inventory (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Real estate inventory capitalized interest costs [Line Items]
Interest capitalized, beginning of period	$ 319,364	$ 352,049	$ 369,419
Interest incurred	178,035	165,977	175,944
Interest expensed to cost of revenues			(172,832)
Write-off against other income		(3,760)	(4,823)
Interest Reclassified to Property Construction and Office Equipment			(485)
Capitalized interest on investments in unconsolidated entities	(4,571)	(7,220)	(8,824)
Real Estate Inventory Capitalized Interest Transferred to Unconsolidated Entities			(8,708)
Previously capitalized interest in unconsolidated entities transferred to inventory	5,327	3,052	2,358
Interest capitalized, end of period	311,323	319,364	352,049
Home Building [Member]
Real estate inventory capitalized interest costs [Line Items]
Interest expensed to cost of revenues	(185,045)	(190,734)
Land [Member]
Real estate inventory capitalized interest costs [Line Items]
Interest expensed to cost of revenues	$ (1,787)

XML

Stock-Based Benefit Plans (Stock Options - Assumptions Table) (Details 1) - Share-based Payment Arrangement, Option [Member] - $ / shares	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Weighted-average assumptions and the fair value used for stock option grants
Weighted-average volatility	30.46%	30.33%	34.72%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	1.36%	0.67%	0.00%
Weighted-average grant date fair value per share of options granted	$ 10.22	$ 16.09	$ 12.16
Minimum [Member]
Weighted-average assumptions and the fair value used for stock option grants
Expected volatility	28.61%	27.66%	29.93%
Risk-free interest rate	2.65%	2.17%	1.96%
Expected life (years)	4 years 230 days	5 years	4 years 219 days
Maximum [Member]
Weighted-average assumptions and the fair value used for stock option grants
Expected volatility	31.34%	31.83%	41.05%
Risk-free interest rate	2.76%	2.35%	2.52%
Expected life (years)	8 years 6 months	8 years 6 months	9 years 88 days

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Income Taxes (Details 2) - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018
Income Tax Disclosure [Abstract]
Accrued Income Taxes, Current	$ 7,897	$ 28,804
Deferred Tax Liabilities, Net	95,074	2,155
Accrued Income Taxes	$ 102,971	$ 30,959

XML

Accrued Expenses Product Liability Contingency (Detail Textuals) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2017	Oct. 31, 2016
Product Warranty Liability [Line Items]
Loss Contingency, Receivable	$ 126,291	$ 114,162
Standard and Extended Product Warranty Accrual	258,831	201,886	$ 329,278	$ 370,992
Water intrusion related [Member]
Product Warranty Liability [Line Items]
Loss Contingency, Estimate of Possible Loss		324,400
Standard and Extended Product Warranty Accrual	177,600	124,600
Other Assets [Member] | Water intrusion related [Member]
Product Warranty Liability [Line Items]
Loss Contingency, Receivable	109,300	$ 97,900
Product Liability Contingency, Third Party Recovery	$ 152,600

XML

Stockholders' Equity (Details) - $ / shares	1 Months Ended	12 Months Ended
	Dec. 31, 2019	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Share Repurchase Program
Number of shares purchased		6,619,000	12,108,000	7,694,000
Average price per share		$ 35.28	$ 41.56	$ 37.81
Remaining authorization at October 31		13,953,000	10,989,000	8,144,000
Subsequent Event [Member]
Share Repurchase Program
Number of shares purchased	3,600,000
Average price per share	$ 39.58

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Supplemental Guarantor Information (Tables)

12 Months Ended

Oct. 31, 2019

Supplemental Guarantor Information [Abstract]

Senior Notes issued by Subsidiary Issuer [Table Text Block]

Our 100%-owned subsidiary, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), has issued the following Senior Notes (amounts in thousands):

	Original amount issued and amount outstanding at October 31, 2019
5.875% Senior Notes due February 15, 2022	$	419,876
4.375% Senior Notes due April 15, 2023	$	400,000
5.625% Senior Notes due January 15, 2024	$	250,000
4.875% Senior Notes due November 15, 2025	$	350,000
4.875% Senior Notes due March 15, 2027	$	450,000
4.350% Senior Notes due February 15, 2028	$	400,000
3.80% Senior Notes due November 1, 2029	$	400,000

Supplemental Consolidated Financial Information

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

Consolidating Balance Sheet at October 31, 2019

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		1,082,067	203,947	—		1,286,014
Inventory					7,791,759	81,289			7,873,048
Property, construction, and office equipment, net					263,140	10,272			273,412
Receivables, prepaid expenses, and other assets					224,681	610,541	(119,781	)	715,441
Mortgage loans held for sale						218,777			218,777
Customer deposits held in escrow					74,303	100			74,403
Investments in unconsolidated entities					50,594	315,658			366,252
Investments in and advances to consolidated entities	5,172,737		2,704,551		163,371	147,413	(8,188,072	)	—
Income taxes receivable	20,791								20,791
	5,193,528		2,704,551		9,649,915	1,587,997	(8,307,853	)	10,828,138
LIABILITIES AND EQUITY
Liabilities
Loans payable					1,109,614	36,092	(34,257	)	1,111,449
Senior notes			2,659,898						2,659,898
Mortgage company loan facility						150,000			150,000
Customer deposits					383,583	2,013			385,596
Accounts payable					347,715	884			348,599
Accrued expenses	754		26,812		569,476	443,180	(89,290	)	950,932
Advances from consolidated entities					1,052,370	503,058	(1,555,428	)	—
Income taxes payable	102,971								102,971
Total liabilities	103,725		2,686,710		3,462,758	1,135,227	(1,678,975	)	5,709,445
Equity
Stockholders’ equity
Common stock	1,529				48	3,006	(3,054	)	1,529
Additional paid-in capital	726,879		49,400			177,034	(226,434	)	726,879
Retained earnings (deficit)	4,792,409		(31,559	)	6,187,109	225,853	(6,399,390	)	4,774,422
Treasury stock, at cost	(425,183	)							(425,183	)
Accumulated other comprehensive loss	(5,831	)							(5,831	)
Total stockholders’ equity	5,089,803		17,841		6,187,157	405,893	(6,628,878	)	5,071,816
Noncontrolling interest						46,877			46,877
Total equity	5,089,803		17,841		6,187,157	452,770	(6,628,878	)	5,118,693
	5,193,528		2,704,551		9,649,915	1,587,997	(8,307,853	)	10,828,138

Consolidating Balance Sheet at October 31, 2018

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		1,011,863	170,332	—		1,182,195
Inventory					7,493,205	105,014			7,598,219
Property, construction, and office equipment, net					169,265	24,016			193,281
Receivables, prepaid expenses, and other assets					291,299	392,559	(133,080	)	550,778
Mortgage loans held for sale						170,731			170,731
Customer deposits held in escrow					116,332	1,241			117,573
Investments in unconsolidated entities					44,329	387,484			431,813
Investments in and advances to consolidated entities	4,791,629		2,916,557		91,740	126,872	(7,926,798	)	—
	4,791,629		2,916,557		9,218,033	1,378,249	(8,059,878	)	10,244,590
LIABILITIES AND EQUITY
Liabilities
Loans payable					686,801				686,801
Senior notes			2,861,375						2,861,375
Mortgage company loan facility						150,000			150,000
Customer deposits					405,318	5,546			410,864
Accounts payable					361,655	443			362,098
Accrued expenses	471		37,341		600,907	462,128	(127,266	)	973,581
Advances from consolidated entities					1,551,196	476,040	(2,027,236	)	—
Income taxes payable	30,959								30,959
Total liabilities	31,430		2,898,716		3,605,877	1,094,157	(2,154,502	)	5,475,678
Equity
Stockholders’ equity
Common stock	1,779				48	3,006	(3,054	)	1,779
Additional paid-in capital	727,053		49,400			93,734	(143,134	)	727,053
Retained earnings (deficit)	5,161,551		(31,559	)	5,612,108	178,639	(5,759,188	)	5,161,551
Treasury stock, at cost	(1,130,878	)							(1,130,878	)
Accumulated other comprehensive loss	694								694
Total stockholders’ equity	4,760,199		17,841		5,612,156	275,379	(5,905,376	)	4,760,199
Noncontrolling interest						8,713			8,713
Total equity	4,760,199		17,841		5,612,156	284,092	(5,905,376	)	4,768,912
	4,791,629		2,916,557		9,218,033	1,378,249	(8,059,878	)	10,244,590

Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2019

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues:
Home sales					6,980,549		99,830				7,080,379
Land sales and other					112,972		260,843		(230,228	)	143,587
	—		—		7,093,521		360,673		(230,228	)	7,223,966
Cost of revenues:
Home sales					5,595,685		79,400		3,829		5,678,914
Land sales and other					59,338		180,162		(109,796	)	129,704
	—		—		5,655,023		259,562		(105,967	)	5,808,618
Selling, general and administrative	542		2,715		775,030		75,905		(119,644	)	734,548
Income (loss) from operations	(542	)	(2,715	)	663,468		25,206		(4,617	)	680,800
Other:
Income from unconsolidated entities					12,930		11,938				24,868
Other income - net					48,052		26,352		7,098		81,502
Intercompany interest income			135,087		2,616		5,781		(143,484	)	—
Interest expense			(132,372	)	(5,781	)	(2,850	)	141,003		—
Income from consolidated subsidiaries	787,712				66,427				(854,139	)	—
Income (loss) before income taxes	787,170		—		787,712		66,427		(854,139	)	787,170
Income tax provision (benefit)	197,163				197,298		16,637		(213,935	)	197,163
Net income (loss)	590,007		—		590,414		49,790		(640,204	)	590,007
Other comprehensive income	(6,525	)									(6,525	)
Total comprehensive income (loss)	583,482		—		590,414		49,790		(640,204	)	583,482

Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2018

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					6,899,891		453,073		(209,706	)	7,143,258
Cost of revenues					5,427,753		303,962		(58,708	)	5,673,007
Selling, general and administrative	77		3,162		709,265		83,003		(111,472	)	684,035
	77		3,162		6,137,018		386,965		(170,180	)	6,357,042
Income (loss) from operations	(77	)	(3,162	)	762,873		66,108		(39,526	)	786,216
Other:
Income from unconsolidated entities					44,646		40,594				85,240
Other income - net					30,561		(2,950	)	34,849		62,460
Intercompany interest income			142,084		1,649		4,422		(148,155	)	—
Interest expense			(138,922	)	(4,422	)	(2,111	)	145,455		—
Income from consolidated subsidiaries	933,993				106,063				(1,040,056	)	—
Income (loss) before income taxes	933,916		—		941,370		106,063		(1,047,433	)	933,916
Income tax provision (benefit)	185,765				187,248		21,097		(208,345	)	185,765
Net income (loss)	748,151		—		754,122		84,966		(839,088	)	748,151
Other comprehensive income	2,926										2,926
Total comprehensive income (loss)	751,077		—		754,122		84,966		(839,088	)	751,077

Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2017

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					5,668,610		336,671		(190,223	)	5,815,058
Cost of revenues					4,414,461		223,243		(75,401	)	4,562,303
Selling, general and administrative	58		4,033		633,000		77,115		(108,634	)	605,572
	58		4,033		5,047,461		300,358		(184,035	)	5,167,875
Income (loss) from operations	(58	)	(4,033	)	621,149		36,313		(6,188	)	647,183
Other:
Income from unconsolidated entities					12,271		103,795				116,066
Other income - net	10,574				26,653		10,674		3,161		51,062
Intercompany interest income			156,366		48		4,365		(160,779	)	—
Interest expense			(162,882	)	(4,365	)	(1,819	)	169,066		—
Income from consolidated subsidiaries	803,795				142,779				(946,574	)	—
Income (loss) before income taxes	814,311		(10,549	)	798,535		153,328		(941,314	)	814,311
Income tax provision (benefit)	278,816		(3,612	)	273,418		52,500		(322,306	)	278,816
Net income (loss)	535,495		(6,937	)	525,117		100,828		(619,008	)	535,495
Other comprehensive income	1,426										1,426
Total comprehensive income (loss)	536,921		(6,937	)	525,117		100,828		(619,008	)	536,921

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2019

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	76,828		(8,413	)	559,660		(180,837	)	(9,577	)	437,661
Cash flow provided by (used in) investing activities:
Purchase of property and equipment — net					(86,936	)	(35	)			(86,971	)
Investment in unconsolidated entities					(11,202	)	(45,358	)			(56,560	)
Return of investments in unconsolidated entities					3,304		144,623				147,927
Investment in distressed loans and foreclosed real estate							(731	)			(731	)
Return of investments in distressed loans and foreclosed real estate							3,147				3,147
Proceeds from sales of golf club properties and an office building					58,154		21,493				79,647
Acquisitions of businesses					(162,373	)					(162,373	)
Investment paid intercompany					(71,631	)			71,631		—
Intercompany advances	202,967		212,005						(414,972	)	—
Net cash provided by (used in) investing activities	202,967		212,005		(270,684	)	123,139		(343,341	)	(75,914	)
Cash flow (used in) provided by financing activities:
Proceeds from issuance of senior notes			400,000								400,000
Proceeds from loans payable					300,000		2,399,028				2,699,028
Debt issuance costs			(3,592	)	(2,588	)					(6,180	)
Principal payments of loans payable					(72,588	)	(2,399,028	)			(2,471,616	)
Redemption of senior notes			(600,000	)							(600,000	)
Proceeds from stock-based benefit plans	17,369										17,369
Purchase of treasury stock	(233,523	)									(233,523	)
Dividends paid	(63,641	)									(63,641	)
Receipts related to noncontrolling interest							49				49
Investment received intercompany							71,628		(71,628	)	—
Intercompany advances					(443,577	)	19,031		424,546		—
Net cash (used in) provided by financing activities	(279,795	)	(203,592	)	(218,753	)	90,708		352,918		(258,514	)
Net increase in cash, cash equivalents, and restricted cash	—		—		70,223		33,010		—		103,233
Cash, cash equivalents, and restricted cash, beginning of period	—		—		1,011,867		204,543		—		1,216,410
Cash, cash equivalents, and restricted cash, end of period	—		—		1,082,090		237,553		—		1,319,643

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2018

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	(4,270	)	5,439		521,640		56,301		9,101		588,211
Cash flow provided by (used in) investing activities:
Purchase of property and equipment — net					(28,064	)	(168	)			(28,232	)
Investment in unconsolidated entities					(1,676	)	(25,815	)			(27,491	)
Return of investments in unconsolidated entities					29,242		103,948				133,190
Investment in distressed loans and foreclosed real estate							(966	)			(966	)
Return of investments in distressed loans and foreclosed real estate							4,765				4,765
Intercompany advances	555,741		(401,908	)					(153,833	)	—
Net cash provided by (used in) investing activities	555,741		(401,908	)	(498	)	81,764		(153,833	)	81,266
Cash flow (used in) provided by financing activities:
Proceeds from issuance of senior notes			400,000								400,000
Proceeds from loans payable					590,000		2,040,835				2,630,835
Debt issuance costs			(3,531	)							(3,531	)
Principal payments of loans payable					(679,184	)	(2,010,980	)			(2,690,164	)
Proceeds from stock-based benefit plans	13,392										13,392
Purchase of treasury stock	(503,159	)									(503,159	)
Payments related to noncontrolling interest							30				30
Dividends paid intercompany							(6,000	)	6,000		—
Dividends paid	(61,704	)									(61,704	)
Intercompany advances					45,205		(183,937	)	138,732		—
Net cash (used in) provided by financing activities	(551,471	)	396,469		(43,979	)	(160,052	)	144,732		(214,301	)
Net increase (decrease) in cash, cash equivalents, and restricted cash	—		—		477,163		(21,987	)	—		455,176
Cash, cash equivalents, and restricted cash, beginning of period	—		—		534,704		226,530		—		761,234
Cash, cash equivalents, and restricted cash, end of period	—		—		1,011,867		204,543		—		1,216,410

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2017

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	200,721		9,955		294,302		366,144		(9,424	)	861,698
Cash flow (used in) provided by investing activities:
Purchase of property and equipment — net					(20,439	)	(8,433	)			(28,872	)
Sale and redemption of marketable securities and restricted investments - net	10,631						7,418				18,049
Investment in unconsolidated entities					(3,744	)	(118,590	)			(122,334	)
Return of investments in unconsolidated entities					58,610		136,895				195,505
Investment in distressed loans and foreclosed real estate							(710	)			(710	)
Return of investments in distressed loans and foreclosed real estate							13,765				13,765
Acquisition of a business					(83,088	)					(83,088	)
Investment paid intercompany					(45,000	)			45,000		—
Intercompany advances	51,071		226,511						(277,582	)	—
Net cash (used in) provided by investing activities	61,702		226,511		(93,661	)	30,345		(232,582	)	(7,685	)
Cash flow (used in) provided by financing activities:
Net proceeds from issuance of senior notes			455,483								455,483
Proceeds from loans payable					250,068		1,370,975				1,621,043
Debt issuance costs			(4,449	)							(4,449	)
Principal payments of loans payable					(538,527	)	(1,460,830	)			(1,999,357	)
Redemption of senior notes			(687,500	)							(687,500	)
Proceeds from stock-based benefit plans	66,000										66,000
Purchase of treasury stock	(290,881	)									(290,881	)
Dividends paid	(38,587	)									(38,587	)
Investment received intercompany							45,000		(45,000	)	—
Intercompany advances					39,082		(326,088	)	287,006		—
Net cash (used in) provided by financing activities	(263,468	)	(236,466	)	(249,377	)	(370,943	)	242,006		(878,248	)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(1,045	)	—		(48,736	)	25,546		—		(24,235	)
Cash, cash equivalents, and restricted cash, beginning of period	1,045		—		583,440		200,984		—		785,469
Cash, cash equivalents, and restricted cash, end of period	—		—		534,704		226,530		—		761,234

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Commitments and Contingencies (Tables)

12 Months Ended

Oct. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Company purchase commitments

Information regarding our land purchase commitments at October 31, 2019 and 2018, is provided in the table below (amounts in thousands):

	2019		2018
Aggregate purchase commitments:
Unrelated parties	$	2,349,900	$	2,404,660
Unconsolidated entities that the Company has investments in	10,826		128,235
Total	$	2,360,726	$	2,532,895
Deposits against aggregate purchase commitments	$	168,778	$	168,421
Credits to be received from unconsolidated entities			79,168
Additional cash required to acquire land	2,191,948		2,285,306
Total	$	2,360,726	$	2,532,895
Amount of additional cash required to acquire land included in accrued expenses	$	14,620	$	40,103

Company mortgage commitments

Information regarding our mortgage commitments at October 31, 2019 and 2018, is provided in the table below (amounts in thousands):

	2019		2018
Aggregate mortgage loan commitments:
IRLCs	$	565,634	$	614,255
Non-IRLCs	1,364,972		1,329,674
Total	$	1,930,606	$	1,943,929
Investor commitments to purchase:
IRLCs	$	565,634	$	614,255
Mortgage loans receivable	208,591		163,208
Total	$	774,225	$	777,463

Lessee, Operating Lease, Disclosure [Table Text Block]

Rental expenses incurred by us under these operating leases were (amounts in thousands):

Year ending October 31,	Amount
2019	$	20,180
2018	$	15,783
2017	$	14,505

Future minimum rent payments under these operating leases [Text Block]

At October 31, 2019, future minimum rent payments under our operating leases were (amounts in thousands):

Year ending October 31,	Amount
2020	$	15,430
2021	12,576
2022	10,082
2023	7,800
2024	6,691
Thereafter	218,221
	$	270,800

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Significant Accounting Policies (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017	Nov. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	$ 437,661	$ 588,211	$ 861,698
Customer Advances and Deposits	385,596	410,864
Accounting Standards Update 2016-18 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		$ 14,200	$ 103,400
Maximum [Member] | Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease, Right-of-Use Asset, % Estimate				1.00%
Operating Lease Liability, % Estimate				2.00%
Home Building [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract with Customer, Liability, Revenue Recognized	$ 367,800

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Stock-Based Benefit Plans (Stock Options - Net Exercise Method Table) (Details 6) - Share-based Payment Arrangement, Option [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercised	1,044,000	797,000	2,863,000
Net exercise method [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercised	33,250		15,000
Shares tendered	21,842		14,472
Shares issued	11,408		528
Average Fair Market Value Per Share Withheld	$ 33.03		$ 32.98
Aggregate Fair Market Value of Shares Withheld	$ 721		$ 477

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Receivables, Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018
Receivables, prepaid expenses and other assets [Abstract]
Expected recoveries from insurance carriers and supplies	$ 114,162	$ 126,291
Improvement cost receivable	100,864	96,937
Escrow cash held by our captive title company	32,863	33,471
Property held for rental development	367,072	193,015
Prepaid expenses	26,041	23,065
Other	74,439	77,999
Receivables, prepaid expenses, and other assets	$ 715,441	$ 550,778

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Loans Payable, Senior Notes, and Mortgage Company Loan Facility Credit Facility (Details Textual 2) $ in Thousands	12 Months Ended
	Oct. 31, 2019 USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,628,150
Long-term line of credit	1,239,493
Oct 2019 Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,905,000
Line of Credit Facility, term of contract	5 years
Line of credit facility, available for letters of credit	100.00%
Line of Credit Facility Contingent Increase To Maximum Borrowing Capacity	$ 2,500,000
Debt Instrument, Interest Rate, Effective Percentage	3.31%
May 2016 Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,295,000
Debt Instrument, Maturity Date	May 01, 2021
Line of Credit Facility Contingent Increase To Maximum Borrowing Capacity	$ 2,000,000
Maximum Permissible Leverage Ratio	175.00%
Minimum Net Worth Required for Compliance	$ 2,700,000
Existing Leverage Ratio	0.50
Tangible Net Worth	$ 5,020,000
Ability to repurchase common stock	3,530,000
Ability to pay dividends	2,320,000
Long-term line of credit	0
Letters of Credit Outstanding, Amount	$ 177,900
Guarantor Subsidiaries [Member]
Line of Credit Facility [Line Items]
Subsidiary of Company, Ownership Percentage by Parent	100.00%

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Stock-Based Benefit Plans ESPP (ESPP) (Details 10) - Employee Stock [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Discounted Market Price of Common Stock on Specified Offering Dates without Restriction under Employee Stock Purchase Plan	95.00%
Discounted Market Price of Common Stock on Specified Offering Dates Subject to Restrictions under Employee Stock Purchase Plan	85.00%
Shares Reserved for Employee Stock Purchase Plan	500,000
Common Stock, Capital Shares Reserved for Future Issuance	407,000
Stock Issued During Period, Shares, Employee Stock Purchase Plans	41,744	35,471	33,314
Employee Stock Ownership Plan (ESOP), Weighted Average Purchase Price of Shares Purchased	$ 31.80	$ 34.08	$ 32.25
Employee Stock Ownership Plan (ESOP), Compensation Expense	$ 184	$ 171	$ 147

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Significant Accounting Policies (Policies)

12 Months Ended

Oct. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation Policy [Text Block]

Basis of Presentation

The consolidated financial statements include the accounts of Toll Brothers, Inc. (the “Company,” “we,” “us,” or “our”), a Delaware corporation, and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Investments in 50% or less owned partnerships and affiliates are accounted for using the equity method unless it is determined that we have effective control of the entity, in which case we would consolidate the entity.

References herein to fiscal year refer to our fiscal years ended or ending October 31.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

Liquid investments or investments with original maturities of three months or less are classified as cash equivalents. Our cash balances exceed federally insurable limits. We monitor the cash balances in our operating accounts and adjust the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, we have experienced no loss or lack of access to cash in its operating accounts.

Inventory [Policy Text Block]

Inventory

Inventory is stated at cost unless an impairment exists, in which case it is written down to fair value in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment” (“ASC 360”). In addition to direct land acquisition costs, land development costs, and home construction costs, costs also include interest, real estate taxes, and direct overhead related to development and construction, which are capitalized to inventory during the period beginning with the commencement of development and ending with the completion of construction. For those communities that have been temporarily closed, no additional capitalized interest is allocated to a community’s inventory until it reopens. While the community remains closed, carrying costs such as real estate taxes are expensed as incurred.

We capitalize certain interest costs to qualified inventory during the development and construction period of our communities in accordance with ASC 835-20, “Capitalization of Interest” (“ASC 835-20”). Capitalized interest is charged to home sales cost of sales revenues when the related inventory is delivered. Interest incurred on home building indebtedness in excess of qualified inventory, as defined in ASC 835-20, is charged to the Consolidated Statements of Operations and Comprehensive Income in the period incurred.

Once a parcel of land has been approved for development and we open one of our typical communities, it may take 4 or more years to fully develop, sell, and deliver all the homes in such community. Longer or shorter time periods are possible depending on the number of home sites in a community and the sales and delivery pace of the homes in a community. Our master planned communities, consisting of several smaller communities, may take up to 10 years or more to complete. Because our inventory is considered a long-lived asset under GAAP, we are required, under ASC 360, to regularly review the carrying value of each community and write down the value of those communities for which we believe the values are not recoverable.

Operating Communities: When the profitability of an operating community deteriorates, the sales pace declines significantly, or some other factor indicates a possible impairment in the recoverability of the asset, the asset is reviewed for impairment by comparing the estimated future undiscounted cash flow for the community to its carrying value. If the estimated future undiscounted cash flow is less than the community’s carrying value, the carrying value is written down to its estimated fair value. Estimated fair value is primarily determined by discounting the estimated future cash flow of each community. The impairment is charged to home sales cost of revenues in the period in which the impairment is determined. In estimating the future undiscounted cash flow of a community, we use various estimates such as (i) the expected sales pace in a community, based upon general economic conditions that will have a short-term or long-term impact on the market in which the community is located and on competition within the market, including the number of home sites available and pricing and incentives being offered in other communities owned by us or by other builders; (ii) the expected sales prices and sales incentives to be offered in a community; (iii) costs expended to date and expected to be incurred in the future, including, but not limited to, land and land development, home construction, interest, and overhead costs; (iv) alternative product offerings that may be offered in a

community that will have an impact on sales pace, sales price, building cost, or the number of homes that can be built on a particular site; and (v) alternative uses for the property such as the possibility of a sale of the entire community to another builder or the sale of individual home sites.

Future Communities: We evaluate all land held for future communities or future sections of operating communities, whether owned or under contract, to determine whether or not we expect to proceed with the development of the land as originally contemplated. This evaluation encompasses the same types of estimates used for operating communities described above, as well as an evaluation of the regulatory environment applicable to the land and the estimated probability of obtaining the necessary approvals, the estimated time and cost it will take to obtain the approvals, and the possible concessions that may be required to be given in order to obtain them. Concessions may include cash payments to fund improvements to public places such as parks and streets, dedication of a portion of the property for use by the public or as open space, or a reduction in the density or size of the homes to be built. Based upon this review, we decide (i) as to land under contract to be purchased, whether the contract will likely be terminated or renegotiated, and (ii) as to land owned, whether the land will likely be developed as contemplated or in an alternative manner, or should be sold. We then further determine whether costs that have been capitalized to the community are recoverable or should be written off. The write-off is charged to home sales cost of revenues in the period in which the need for the write-off is determined.

The estimates used in the determination of the estimated cash flows and fair value of both current and future communities are based on factors known to us at the time such estimates are made and our expectations of future operations and economic conditions. Should the estimates or expectations used in determining estimated fair value deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to current and future communities and such amounts could be material.

Capitalization of Interest Costs Policy [Text Block]

We capitalize certain interest costs to qualified inventory during the development and construction period of our communities in accordance with ASC 835-20, “Capitalization of Interest” (“ASC 835-20”). Capitalized interest is charged to home sales cost of sales revenues when the related inventory is delivered. Interest incurred on home building indebtedness in excess of qualified inventory, as defined in ASC 835-20, is charged to the Consolidated Statements of Operations and Comprehensive Income in the period incurred.

Estimated fair values Policy [Text Block]

The estimates used in the determination of the estimated cash flows and fair value of both current and future communities are based on factors known to us at the time such estimates are made and our expectations of future operations and economic conditions. Should the estimates or expectations used in determining estimated fair value deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to current and future communities and such amounts could be material.

Consolidation, Policy [Policy Text Block]

Variable Interest Entities

We are required to consolidate variable interest entities (“VIEs”) in which we have a controlling financial interest in accordance with ASC 810, “Consolidation” (“ASC 810”). A controlling financial interest will have both of the following characteristics: (i) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

Our variable interest in VIEs may be in the form of equity ownership, contracts to purchase assets, management services and development agreements between us and a VIE, loans provided by us to a VIE or other member, and/or guarantees provided by members to banks and other parties.

We have a significant number of land purchase contracts and investments in unconsolidated entities which we evaluate in accordance with ASC 810. We analyze our land purchase contracts and the unconsolidated entities in which we have an investment to determine whether the land sellers and unconsolidated entities are VIEs and, if so, whether we are the primary beneficiary. We examine specific criteria and use our judgment when determining if we are the primary beneficiary of a VIE. Factors considered in determining whether we are the primary beneficiary include risk and reward sharing, experience and financial condition of other member(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, level of economic disproportionality between us and the other member(s), and contracts to purchase assets from VIEs. The determination whether an entity is a VIE and, if so, whether we are the primary beneficiary may require significant judgment.

Property, Plant and Equipment, Policy [Policy Text Block]

Property, Construction, and Office Equipment

Property, construction, and office equipment are recorded at cost and are stated net of accumulated depreciation of $252.5 million and $145.0 million at October 31, 2019 and 2018, respectively. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. In fiscal 2019, 2018, and 2017, we recognized $67.6 million, $21.0 million, and $18.7 million of depreciation expense, respectively.

Mortgage Loans Held for Sale [Policy Text Block]

Mortgage Loans Held for Sale

Residential mortgage loans held for sale are measured at fair value in accordance with the provisions of ASC 825, “Financial Instruments” (“ASC 825”). We believe the use of ASC 825 improves consistency of mortgage loan valuations between the date the borrower locks in the interest rate on the pending mortgage loan and the date of the mortgage loan sale. At the end of the reporting period, we determine the fair value of our mortgage loans held for sale and the forward loan commitments we have entered into as a hedge against the interest rate risk of our mortgage loans 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 such pricing is applied to the mortgage loan portfolio. We recognize the difference between the fair value and the unpaid principal balance of mortgage loans held for sale as a gain or loss. In addition, we recognize the fair value of our forward loan

commitments as a gain or loss. Interest income on mortgage loans held for sale is calculated based upon the stated interest rate of each loan. In addition, the recognition of net origination costs and fees associated with residential mortgage loans originated are expensed as incurred. These gains and losses, interest income, and origination costs and fees are recognized in “Other income - net” in the Consolidated Statements of Operations and Comprehensive Income.

Investments in Unconsolidated Entities [Policy Text Block]

Investments in Unconsolidated Entities

In accordance with ASC 323, “Investments—Equity Method and Joint Ventures,” 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 the investment 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 from the unconsolidated entity. In addition, for rental properties, we review rental trends, expected future expenses, and expected cash flows to determine estimated fair values of the properties.

Our unconsolidated entities that develop land or develop for-sale homes and condominiums evaluate their inventory in a similar manner as we do. See “Inventory” above for more detailed disclosure on our evaluation of inventory. For our unconsolidated entities that own, develop, and manage for-rent residential apartments, we review rental trends, expected future expenses, and expected future cash flows to determine estimated fair values of the properties. If a valuation adjustment is recorded by an unconsolidated entity related to its assets, our proportionate share is reflected in income from unconsolidated entities with a corresponding decrease to our investment in unconsolidated entities.

We are a party to several joint ventures with unrelated parties to develop and sell land that is owned by the joint ventures. We recognize our proportionate share of the earnings from the sale of home sites to other builders, including our joint venture partners. We do not recognize earnings from the home sites we purchase from these ventures at the time of purchase; instead, our cost basis in those home sites is reduced by our share of the earnings realized by the joint venture from sales of those home sites to us.

We are also a party to several other joint ventures. We recognize our proportionate share of the earnings and losses of our unconsolidated entities.

Fair Value Disclosures [Policy Text Block]

Fair Value Disclosures

We use 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 that 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.

Treasury Stock Policy [Text Block]

Treasury Stock

Treasury stock is recorded at cost. Issuance of treasury stock is accounted for on a first-in, first-out basis. Differences between the cost of treasury stock and the re-issuance proceeds are charged to additional paid-in capital. When treasury stock is canceled, any excess purchase price over par value is charged directly to retained earnings.

Revenue [Policy Text Block]

Revenue and Cost Recognition

As discussed under “Recent Accounting Pronouncements” below, on November 1, 2018, we adopted Accounting Standards Codification (“ASC”) Topic 606 “Revenue from Contracts with Customers” (“ASC 606”). As a result of this adoption, we updated our revenue recognition policies effective November 1, 2018, as follows:

Home sales revenues: Revenues and cost of revenues from home sales are recognized at the time each home is delivered and title and possession are transferred to the buyer. For the majority of our home closings, our performance obligation to deliver a home is satisfied in less than one year from the date a binding sale agreement is signed. In certain states where we build, we are not able to complete certain outdoor features prior to the closing of the home. Effective November 1, 2018, to the extent these separate performance obligations are not complete upon the home closing, we defer a portion of the home sales revenues related to these obligations and subsequently recognize the revenue upon completion of such obligations. As of October 31, 2019, the home sales revenues and related costs we deferred related to these obligations were immaterial. Our contract liabilities, consisting of deposits received from customers for sold but undelivered homes, totaled $385.6 million and $410.9 million at October 31, 2019 and October 31, 2018, respectively. Of the outstanding customer deposits held as of October 31, 2018, we recognized $367.8 million in home sales revenues during the fiscal year ended October 31, 2019.

For our standard attached and detached homes, land, land development, and related costs, both incurred and estimated to be incurred in the future, are amortized to the cost of homes closed based upon the total number of homes to be constructed in each community. Any changes resulting from a change in the estimated number of homes to be constructed or in the estimated land, land development, and related costs subsequent to the commencement of delivery of homes are allocated to the remaining undelivered homes in the community. Home construction and related costs are charged to the cost of homes closed under the specific identification method. The estimated land, common area development, and related costs of master planned communities, including the cost of golf courses, net of their estimated residual value, are allocated to individual communities within a master planned community on a relative sales value basis. Any changes resulting from a change in the estimated number of homes to be constructed or in the estimated costs are allocated to the remaining home sites in each of the communities of the master planned community.

For high-rise/mid-rise projects, land, land development, construction, and related costs, both incurred and estimated to be incurred in the future, are generally amortized to the cost of units closed based upon an estimated relative sales value of the units closed to the total estimated sales value. Any changes resulting from a change in the estimated total costs or revenues of the project are allocated to the remaining units to be delivered.

Land sales revenues: Our revenues from land sales generally consist of: (1) lot sales to third-party builders within our master planned communities; (2) land sales to joint ventures in which we retain an interest; and (3) bulk land sales to third parties of land we have decided no longer meets our development criteria. In general, our performance obligation for each of these land sales is fulfilled upon the delivery of the land, which generally coincides with the receipt of cash consideration from the counterparty. Effective November 1, 2018, in land sale transactions that contain repurchase options, revenues and related costs are not recognized until the repurchase option expires. In addition, when we sell land to a joint venture in which we retain an interest, we do not recognize revenue or gains on the sale to the extent of our retained interest in such joint venture.

Forfeited Customer Deposits: Effective November 1, 2018, forfeited customer deposits are recognized in “Home sales revenues” in our Consolidated Statements of Operations and Comprehensive Income in the period in which we determine that the customer will not complete the purchase of the home and we have the right to retain the deposit.

Sales Incentives: In order to promote sales of our homes, we may offer our home buyers sales incentives. These incentives will vary by type of incentive and by amount on a community-by-community and home-by-home basis. Incentives are reflected as a reduction in home sales revenues. Incentives are recognized at the time the home is delivered to the home buyer and we receive the sales proceeds.

Advertising Cost [Policy Text Block]

Advertising Costs

We expense advertising costs as incurred. Advertising costs were $38.5 million, $28.5 million, and $26.1 million for the years ended October 31, 2019, 2018, and 2017, respectively.

Warranty Costs Policy [Text Block]

Warranty and Self-Insurance

Warranty: We provide all of our home buyers with a limited warranty as to workmanship and mechanical equipment. We also provide many of our home buyers with a limited 10-year warranty as to structural integrity. We accrue 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. Adjustments to our warranty liabilities related to homes delivered in prior periods are recorded in the period in which a change in our estimate occurs. Over the past several years, we have had a significant number of warranty claims related primarily to homes built in Pennsylvania and Delaware. See Note 7 – “Accrued Expenses” for additional information regarding these warranty charges.

Self-insurance [Text Block]

Self-Insurance: We maintain, and require the majority of our subcontractors to maintain, general liability insurance (including construction defect and bodily injury coverage) and workers’ compensation insurance. These insurance policies protect us against a portion of our risk of loss from claims related to our home building activities, subject to certain self-insured

retentions, deductibles and other coverage limits (“self-insured liability”). We also provide general liability insurance for our subcontractors in Arizona, California, Colorado, Nevada, Washington, and certain areas of Texas, where eligible subcontractors are enrolled as insureds under our general liability insurance policies in each community in which they perform work. For those enrolled subcontractors, we absorb their general liability associated with the work performed on our homes within the applicable community as part of our overall general liability insurance and our self-insured liability.

We record expenses and liabilities based on the estimated costs required to cover our self-insured liability and the estimated costs of potential claims and claim adjustment expenses that are above our coverage limits or that are not covered by our insurance policies. These estimated costs are based on an analysis of our historical claims and industry data, and include an estimate of claims incurred but not yet reported (“IBNR”).

We engage a third-party actuary that uses our historical claim and expense data, input from our internal legal and risk management groups, as well as industry data, to estimate our liabilities related to unpaid claims, IBNR associated with the risks that we are assuming for our self-insured liability, and other required costs to administer current and expected claims. These estimates are subject to uncertainty due to a variety of factors, the most significant being the long period of time between the delivery of a home to a home buyer and when a structural warranty or construction defect claim may be made, and the ultimate resolution of the claim. Though state regulations vary, construction defect claims may be reported and resolved over a prolonged period of time, which can extend for 10 years or longer. As a result, the majority of the estimated liability relates to IBNR. Adjustments to our liabilities related to homes delivered in prior years are recorded in the period in which a change in our estimate occurs.

The projection of losses related to these liabilities requires actuarial assumptions that are subject to variability due to uncertainties regarding construction defect claims relative to our markets and the types of product we build, insurance industry practices, and legal or regulatory actions and/or interpretations, among other factors. Key assumptions used in these estimates include claim frequencies, severities, and settlement patterns, which can occur over an extended period of time. In addition, changes in the frequency and severity of reported claims and the estimates to settle claims can impact the trends and assumptions used in the actuarial analysis, which could be material to our consolidated financial statements. Due to the degree of judgment required, and the potential for variability in these underlying assumptions, our actual future costs could differ from those estimated, and the difference could be material to our consolidated financial statements.

Share-based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

We account for our stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation” (“ASC 718”). We use a lattice model for the valuation of our stock option grants. The option pricing models used are designed to estimate the value of options that, unlike employee stock options and restricted stock units, can be traded at any time and are transferable. In addition to restrictions on trading, employee stock options and restricted stock units may include other restrictions such as vesting periods. Further, such models require the input of highly subjective assumptions, including the expected volatility of the stock price. Stock-based compensation expense is generally included in “Selling, general and administrative” expense in our Consolidated Statements of Operations and Comprehensive Income.

Legal Costs, Policy [Policy Text Block]

Legal Expenses

Transactional legal expenses for land acquisition and entitlement, and financing are capitalized and expensed over their appropriate life. We expense legal fees related to litigation, warranty and insurance claims when incurred.

Income Tax, Policy [Policy Text Block]

Income Taxes

We account for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). Deferred tax assets and liabilities are recorded based on temporary differences between the amounts reported for financial reporting purposes and the amounts reported for income tax purposes. In accordance with the provisions of ASC 740, we assess the realizability of our deferred tax assets. A valuation allowance must be established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. See “Income Taxes – Valuation Allowance” below.

Federal and state income taxes are calculated on reported pre-tax earnings based on current tax law and also include, in the applicable period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provisions differ from the amounts currently receivable or payable because certain items of income and expense are recognized for financial reporting purposes in different periods than for income tax purposes. Significant judgment is required in determining income tax provisions and evaluating tax positions. We establish reserves for income taxes when, despite the belief that our tax positions are fully supportable, we believe that our positions may be challenged and disallowed by various tax authorities. The consolidated tax provisions and related accruals include the impact of such reasonably estimable disallowances as deemed appropriate. To the extent that the probable tax outcome of these matters changes, such changes in estimates will impact the income tax provision in the period in which such determination is made.

ASC 740 clarifies the accounting for uncertainty in income taxes recognized and prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 requires a company to recognize the financial statement effect of a tax position when it is “more-likely-than-not” (defined as a substantiated likelihood of more than 50%), based on the technical merits of the position, that the position will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to be recognized in the financial statements based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Our inability to determine that a tax position meets the more-likely-than-not recognition threshold does not mean that the Internal Revenue Service (“IRS”) or any other taxing authority will disagree with the position that we have taken.

If a tax position does not meet the more-likely-than-not recognition threshold, despite our belief that our filing position is supportable, the benefit of that tax position is not recognized in the Consolidated Statements of Operations and Comprehensive Income and we are required to accrue potential interest and penalties until the uncertainty is resolved. Potential interest and penalties are recognized as a component of the provision for income taxes. Differences between amounts taken in a tax return and amounts recognized in the financial statements are considered unrecognized tax benefits. We believe that we have a reasonable basis for each of our filing positions and intend to defend those positions if challenged by the IRS or other taxing jurisdiction. If the IRS or other taxing authorities do not disagree with our position, and after the statute of limitations expires, we will recognize the unrecognized tax benefit in the period that the uncertainty of the tax position is eliminated.

Income Taxes - Valuation Allowance [Policy Text Block]

Income Taxes — Valuation Allowance

We assess the need for valuation allowances for deferred tax assets in each period based on whether it is more-likely-than-not that some portion of the deferred tax asset would not be realized. If, based on the available evidence, it is more-likely-than-not that such asset will not be realized, a valuation allowance is established against a deferred tax asset. The realization of a deferred tax asset ultimately depends on the existence of sufficient taxable income in either the carryback or carryforward periods under tax law. This assessment considers, among other matters, the nature, consistency, and magnitude of current and cumulative income and losses; forecasts of future profitability; the duration of statutory carryback or carryforward periods; our experience with operating loss and tax credit carryforwards being used before expiration; tax planning alternatives: and outlooks for the U.S. housing industry and broader economy. Changes in existing tax laws or rates could also affect our actual tax results. Due to uncertainties in the estimation process, particularly with respect to changes in facts and circumstances in future reporting periods, actual results could differ from the estimates used in our assessment that could have a material impact on our consolidated results of operations or financial position.

Geographic Segment Reporting Policy [Text Block]

Segment Reporting

We operate in two segments: traditional home building and urban infill. We build and sell homes for detached and attached homes in luxury residential communities located in affluent suburban markets and cater to move-up, empty-nester, active-adult, 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, New Jersey, and New York

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

South:        Florida, Georgia, North Carolina, South Carolina and Texas

West:        Arizona, Colorado, Idaho, Nevada, Oregon, Utah and Washington

California:    California

In fiscal 2018, we acquired land and commenced development activities in the Salt Lake City, Utah and Portland, Oregon markets. We opened communities in these markets in fiscal 2019. In addition, as a result of two acquisitions, we commenced operations in Georgia and South Carolina in fiscal 2019. In fiscal 2018, we discontinued the sale of homes in Minnesota. Our operations in Minnesota were immaterial to the North geographic segment.

Related Party Transactions [Policy Text Block]

Related Party Transactions

See Note 4, “Investments in Unconsolidated Entities - Rental Property Joint Ventures” for information regarding Toll Brothers Realty Trust.

Recent Accounting Pronouncements [Policy Text Block]

Recent Accounting Pronouncements

In May 2014, the FASB created ASC 606 with the issuance ASU No. 2014-09, “Revenue from Contracts with Customers,” which provides guidance for revenue recognition. ASC 606 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets. ASC 606 supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition,” and most industry-specific guidance. ASC 606 also supersedes some cost guidance included in ASC Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the previous guidance. These judgments and estimates include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 “Revenue from Contracts with Customers” (“ASU 2015-14”), which delayed the effective date of ASC 606 by one year. ASC 606, as amended by ASU 2015-14, became effective for our fiscal year beginning November 1, 2018, and we adopted the new standard under the modified retrospective transition method applied to contracts that were not completed as of November 1, 2018. We elected to apply the practical expedient which allows us to immediately expense incremental costs of obtaining a contract that would otherwise have been recognized in one year or less. We recognized the cumulative effect, net of tax, of applying ASC 606 as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the previous accounting standards. The adoption of ASC 606 did not have a material impact on our Consolidated Balance Sheet or Consolidated Statement of Operations or Comprehensive Income, and there have been no significant changes to our internal controls, processes, or systems as a result of implementing this new standard. However, the adoption of ASC 606 resulted in the following changes:

• Prior to adoption of ASC 606, we capitalized certain costs related to our marketing efforts, including sales offices and model home upgrades and furnishings within “Inventory” on our Consolidated Balance Sheets and amortized such costs through “Selling, general, and administrative” on our Consolidated Statements of Operations and Comprehensive Income. As of November 1, 2018, we reclassified $104.8 million to “Property, construction, and office equipment, net” on our Consolidated Balance Sheets, primarily related to sales offices and model home improvement costs. The amortization of such costs will remain unchanged and will continue to be included in “Selling, general, and administrative” on our Consolidated Statements of Operations and Comprehensive Income. Additionally, we recorded a net cumulative effect adjustment to retained earnings of approximately $13.2 million for certain other marketing costs that no longer qualify for capitalization under the new guidance, and such costs will be expensed as incurred in the future.

• Prior to adoption of ASC 606, we recorded our land sale revenues, net of their related expenses, within “Other income – net” on our Consolidated Statements of Operations and Comprehensive Income. As of November 1, 2018, we are presenting this activity in income from operations and breaking out the components of land sales revenues and land sales cost of revenues on our Consolidated Statements of Operations and Comprehensive Income. In addition, due to the existence of certain repurchase options in existing agreements to sell lots to third party builders in our master planned communities, both for wholly owned projects as well as projects in which we are a joint venture partner, we recorded a net cumulative effect adjustment to retained earnings of approximately $4.6 million to account for previously settled lots for which the related repurchase option had not yet expired. Because the amount of the deferred earning is not material to our consolidated financial statements, we have elected to recognize the revenue and related expenses for such lots in future periods when such repurchase options expire rather than account for them as leases under ASC 840, “Leases.”

• Prior to adoption of ASC 606, retained customer deposits were classified in “Other income – net” on our Consolidated Statements of Operations and Comprehensive Income. As of November 1, 2018, retained customer deposits, which totaled $13.2 million for our fiscal year ending October 31, 2019, are included in “Home sales revenue” on our Consolidated Statements of Operations and Comprehensive Income. Prior period balances for retained customer deposits have not been reclassified and are not material to our consolidated financial statements.

In February 2017, the FASB issued ASU No. 2017-05, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” (“ASU 2017-05”). ASU 2017-05 is meant to clarify the scope of the original guidance within Subtopic

610-20 that was issued in connection with ASC 606, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. ASU 2017-05 also added guidance for partial sales of nonfinancial assets. ASU 2017-05 became effective for our fiscal year beginning November 1, 2018 and we adopted ASU 2017-05 concurrent with our adoption of ASC 606. The adoption of ASU 2017-05 did not have a material effect on our consolidated financial statements and disclosures.

In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”), which provides guidance on the classification of restricted cash in the statement of cash flows. ASU 2016-18 became effective for our fiscal year beginning November 1, 2018 and resulted in a change in the presentation to our Consolidated Statement of Cash Flows but did not have a material effect on our other consolidated financial statements or disclosures. As a result of the adoption of ASU No. 2016-18, net cash provided by operations on the Consolidated Statement of Cash Flows for the years ended October 31, 2018 and 2017, decreased by $14.2 million and $103.4 million, respectively.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which is intended to reduce diversity in practice in how certain transactions are classified and makes eight targeted changes to how cash receipts and cash payments are presented in the statement of cash flows. ASU 2016-15 became effective for our fiscal year beginning November 1, 2018 and did not have a material effect on our consolidated financial statements and disclosures.

In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”), which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and provide additional disclosures. In July 2018, the FASB issued ASU No. 2018-11, “Leases: Targeted Improvements” (“ASU 2018-11”), which provides an entity with the option to apply the transition provisions of the new standard at its adoption date instead of at its earliest comparative period presented. ASU 2018-11 also provides an entity with a practical expedient that permits lessors to not separate nonlease components from the associated lease component if certain conditions are met. ASU 2016-02, as amended by ASU 2018-11, is effective for our fiscal year beginning November 1, 2019, at which time we will adopt the new standard using a modified retrospective approach. We expect to elect the package of transition practical expedients, which allows us to carry forward our historical assessment of (1) whether contracts are or contain leases, (2) lease classification, and (3) initial direct costs. In addition, we expect to elect the practical expedient that allows lessees the option to account for lease and non-lease components together as a single component for all classes of underlying assets. Upon adoption, we currently estimate the increase to our balance sheet will be approximately 1% of assets and approximately 2% of liabilities. While the recognition of such lease assets and liabilities will impact our Consolidated Balance Sheet and require additional disclosure, we do not expect that the new standard will have a material impact on our other consolidated financial statements. We also do not expect significant changes to our business processes, systems, or internal controls as a result of implementing the standard. 

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses. ASU 2016-13 is effective for our fiscal year beginning November 1, 2020, with early adoption permitted as of November 1, 2019. We are currently evaluating the impact that the adoption of ASU 2016-13 may have on our consolidated financial statements and disclosures.

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Employee Retirement and Deferred Compensation Plans

12 Months Ended

Oct. 31, 2019

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits Disclosure

Employee Retirement and Deferred Compensation Plans

Salary Deferral Savings Plans

We maintain salary deferral savings plans covering substantially all employees. We recognized an expense, net of plan forfeitures, with respect to the plans of $14.1 million, $12.6 million, and $12.3 million for the fiscal years ended October 31, 2019, 2018, and 2017, respectively.

Deferred Compensation Plan

We have an unfunded, nonqualified deferred compensation plan that permits eligible employees to defer a portion of their compensation. The deferred compensation, together with certain of our contributions, earns various rates of return depending upon when the compensation was deferred. A portion of the deferred compensation and interest earned may be forfeited by a participant if he or she elects to withdraw the compensation prior to the end of the deferral period. We accrued $31.1 million and $27.0 million at October 31, 2019 and 2018, respectively, for our obligations under the plan.

Defined Benefit Retirement Plans

We have two unfunded defined benefit retirement plans. Retirement benefits generally vest when the participant reaches normal retirement age. Such age was reduced from age 62 to age 58 in fiscal 2019. Unrecognized prior service costs are being amortized over the period from the date participants enter the plans until their interests are fully vested. We used a 2.61%, 4.06%, and 3.19% discount rate in our calculation of the present value of our projected benefit obligations at October 31, 2019, 2018, and 2017, respectively. The rates represent the approximate long-term investment rate at October 31 of the fiscal year for which the present value was calculated. Information related to the plans is based on actuarial information calculated as of October 31, 2019, 2018 and 2017.

Information related to our retirement plans for each of the fiscal years ended October 31, 2019, 2018, and 2017, is as follows (amounts in thousands):

	2019			2018			2017
Plan costs:
Service cost	$	403		$	568		$	619
Interest cost	1,416			1,198			1,142
Amortization of prior service cost	506			936			969
Amortization of unrecognized losses	—			17			137
	$	2,325		$	2,719		$	2,867
Projected benefit obligation:
Beginning of year	$	35,515		$	38,222		$	38,980
Plan amendments adopted during year	4,956
Service cost	403			568			619
Interest cost	1,416			1,198			1,142
Benefit payments	(1,358		)	(1,358		)	(1,318		)
Change in unrecognized gain/loss	4,138			(3,115		)	(1,201		)
Projected benefit obligation, end of year	$	45,070		$	35,515		$	38,222
Unamortized prior service cost:
Beginning of year	$	870		$	1,806		$	2,775
Plan amendments adopted during year	4,956
Amortization of prior service cost	(506		)	(936		)	(969		)
Unamortized prior service cost, end of year	$	5,320		$	870		$	1,806
Accumulated unrecognized (loss) gain, October 31	$	(2,567	)	$	1,571		$	(1,560	)
Accumulated benefit obligation, October 31	$	45,070		$	35,515		$	38,222
Accrued benefit obligation, October 31	$	45,070		$	35,515		$	38,222

The accrued benefit obligation is included in accrued expenses on our Consolidated Balance Sheets.

The table below provides, based upon the estimated retirement dates of the participants in the retirement plans, the amounts of benefits we would be required to pay in each of the next five fiscal years and for the five fiscal years ended October 31, 2029 in the aggregate (in thousands):

Year ending October 31,	Amount
2020	$	1,687
2021	$	2,526
2022	$	2,785
2023	$	3,046
2024	$	3,077
November 1, 2024 – October 31, 2029	$	16,878

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Other Income - Net (Details) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Other Nonoperating Income By Component [Line Items]
Interest income					$ 19,017	$ 8,570	$ 5,988
Income from Ancillary Businesses					53,568	25,692	18,934
Management fee income from home building unconsolidated entities, net	$ 2,455,238	$ 1,913,353	$ 1,599,199	$ 1,175,468	7,223,966	7,143,258	5,815,058
Retained customer deposits					0	8,937	5,801
Land sales, net					0	6,331	8,621
Other					(1,031)	1,190	(1,184)
Total other income - net					81,502	62,460	51,062
Revenues and expenses of non-core ancillary businesses
Revenue					150,114	158,051	134,116
Expense					132,823	132,359	115,182
Gain (Loss) on Disposition of Business					36,277
Management Fee [Member]
Other Nonoperating Income By Component [Line Items]
Management fee income from home building unconsolidated entities, net					$ 9,948	11,740	12,902
Land sales prior [Member]
Other Nonoperating Income By Component [Line Items]
Management fee income from home building unconsolidated entities, net						$ 134,327	$ 284,928

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Information on Segments (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Income (loss) before income taxes
Income before income taxes	$ 272,649	$ 186,916	$ 176,159	$ 151,446	$ 396,473	$ 253,097	$ 152,748	$ 131,598	$ 787,170	$ 933,916	$ 814,311
Revenue from Contract with Customer, Including Assessed Tax					2,455,238	$ 1,913,353	$ 1,599,199	$ 1,175,468	7,223,966	7,143,258	5,815,058
Total assets
Total assets	10,828,138				10,244,590				10,828,138	10,244,590
North [Member]
Income (loss) before income taxes
Income before income taxes									55,897	56,530	50,393
Revenue from Contract with Customer, Including Assessed Tax									923,299	975,648	775,540
Total assets
Total assets	917,506				970,854				917,506	970,854
Mid-Atlantic [Member]
Income (loss) before income taxes
Income before income taxes									64,739	90,573	105,740
Revenue from Contract with Customer, Including Assessed Tax									1,112,817	1,141,130	1,030,269
Total assets
Total assets	1,177,387				1,130,417				1,177,387	1,130,417
South [Member]
Income (loss) before income taxes
Income before income taxes									117,533	110,304	112,809
Revenue from Contract with Customer, Including Assessed Tax									1,244,571	1,045,395	923,953
Total assets
Total assets	1,412,563				1,237,744				1,412,563	1,237,744
West [Member]
Income (loss) before income taxes
Income before income taxes									170,389	213,269	153,188
Revenue from Contract with Customer, Including Assessed Tax									1,418,041	1,451,353	1,151,697
Total assets
Total assets	2,057,389				1,580,199				2,057,389	1,580,199
California [Member]
Income (loss) before income taxes
Income before income taxes									452,350	494,247	345,138
Revenue from Contract with Customer, Including Assessed Tax									2,129,461	2,208,733	1,550,494
Total assets
Total assets	2,339,677				2,733,956				2,339,677	2,733,956
Traditional Homebuilding [Member]
Income (loss) before income taxes
Income before income taxes									860,908	964,923	767,268
Revenue from Contract with Customer, Including Assessed Tax									6,828,189	6,822,259	5,431,953
Total assets
Total assets	7,904,522				7,653,170				7,904,522	7,653,170
City Living [Member]
Income (loss) before income taxes
Income before income taxes									70,133	78,149	193,852
Revenue from Contract with Customer, Including Assessed Tax									253,189	320,999	383,105
Total assets
Total assets	529,507				516,238				529,507	516,238
Corporate and other [Member]
Income (loss) before income taxes
Income before income taxes									(143,871)	(109,156)	(146,809)
Revenue from Contract with Customer, Including Assessed Tax									(999)
Total assets
Total assets	2,394,109				$ 2,075,182				2,394,109	2,075,182
Home Building [Member]
Income (loss) before income taxes
Revenue from Contract with Customer, Including Assessed Tax	2,292,044	1,756,970	1,712,057	1,319,308					7,080,379	7,143,258	5,815,058
Land [Member]
Income (loss) before income taxes
Revenue from Contract with Customer, Including Assessed Tax	$ 86,956	$ 8,721	$ 4,037	$ 43,873					$ 143,587	$ 0	$ 0

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Information on Segments

12 Months Ended

Oct. 31, 2019

Segment Reporting [Abstract]

Information on Segments

Information on Segments

The table below summarizes revenue and income (loss) before income taxes for our segments for each of the fiscal years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	Revenue							Income (loss) before income taxes
	2019			2018		2017		2019			2018			2017
Traditional Home Building:
North	$	923,299		$	975,648	$	775,540	$	55,897		$	56,530		$	50,393
Mid-Atlantic	1,112,817			1,141,130		1,030,269		64,739			90,573			105,740
South	1,244,571			1,045,395		923,953		117,533			110,304			112,809
West	1,418,041			1,451,353		1,151,697		170,389			213,269			153,188
California	2,129,461			2,208,733		1,550,494		452,350			494,247			345,138
Traditional Home Building	6,828,189			6,822,259		5,431,953		860,908			964,923			767,268
City Living	253,189			320,999		383,105		70,133			78,149			193,852
Corporate and other	(999		)					(143,871		)	(109,156		)	(146,809		)
Total home sales revenue	7,080,379			7,143,258		5,815,058		787,170			933,916			814,311
Land sales revenue	143,587			—		—
Total revenue	$	7,223,966		$	7,143,258	$	5,815,058	$	787,170		$	933,916		$	814,311

“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 our Rental Property Joint Ventures and Gibraltar Joint Ventures.

Total assets for each of our segments at October 31, 2019 and 2018, are shown in the table below (amounts in thousands):

	2019		2018
Traditional Home Building:
North	$	917,506	$	970,854
Mid-Atlantic	1,177,387		1,130,417
South	1,412,563		1,237,744
West	2,057,389		1,580,199
California	2,339,677		2,733,956
Traditional Home Building	7,904,522		7,653,170
City Living	529,507		516,238
Corporate and other	2,394,109		2,075,182
	$	10,828,138	$	10,244,590

“Corporate and other” is comprised principally of cash and cash equivalents, restricted cash, income tax receivable, investments in our Rental Property Joint Ventures, expected recoveries from insurance carriers and suppliers, our Gibraltar investments and operations, manufacturing facilities, and our mortgage and title subsidiaries.

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 October 31, 2019
Traditional Home Building:
North	$	24,575	$	64,129	$	764,015	$	852,719
Mid-Atlantic	53,375		96,634		964,188		1,114,197
South	15,622		134,697		1,056,384		1,206,703
West	25,340		34,165		1,924,387		1,983,892
California	64,017		353,186		1,842,935		2,260,138
Traditional Home Building	182,929		682,811		6,551,909		7,417,649
City Living			185,391		270,008		455,399
	$	182,929	$	868,202	$	6,821,917	$	7,873,048
Balances at October 31, 2018
Traditional Home Building:
North	$	17,414	$	99,383	$	803,692	$	920,489
Mid-Atlantic	48,553		123,218		906,990		1,078,761
South	12,305		95,309		957,321		1,064,935
West	22,905		109,671		1,419,989		1,552,565
California	32,441		391,221		2,146,370		2,570,032
Traditional Home Building	133,618		818,802		6,234,362		7,186,782
City Living	6,367		97,814		307,256		411,437
	$	139,985	$	916,616	$	6,541,618	$	7,598,219

The amounts we have provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable for each of our segments, for the years ended October 31, 2019, 2018, and 2017, are shown in the table below (amounts in thousands):

	2019		2018		2017
Traditional Home Building:
North	$	17,488	$	19,698	$	6,528
Mid-Atlantic	8,514		9,818		6,905
South	9,457		3,802		1,184
West	1,074		907		106
California	1,027		147		43
Traditional Home Building	37,560		34,372		14,766
City Living	4,800		15		28
Corporate and other			769
	$	42,360	$	35,156	$	14,794

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

	Investments in unconsolidated entities				Equity in earnings (losses) from unconsolidated entities
	At October 31,				Year ended October 31,
	2019		2018		2019			2018			2017
Traditional Home Building:
Mid-Atlantic	$	8,525	$	7,823				$	(4,000	)	$	(2,000	)
South	91,956		84,610		19,098			$	12,263		$	9,185
West								(63		)	2,529
California	9,825		84,160		(37		)	2,404			7,509
Traditional Home Building	110,306		176,593		19,061			10,604			17,223
City Living	60,512		65,936		4,103			6,857			73,123
Corporate and other	195,434		189,284		1,704			67,779			25,720
	$	366,252	$	431,813	$	24,868		$	85,240		$	116,066

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

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Significant Accounting Policies (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017	Nov. 01, 2018	Nov. 02, 2017
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Retained customer deposits	$ 0	$ 8,937	$ 5,801
Accounting Standards Update 2014-09 [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Reclassification of Inventory to Property, Construction and Office Equipment, Net				$ 104,807
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets				13,200
Land sales prior [Member] | Accounting Standards Update 2014-09 [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets				$ 4,600
Home Building [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Retained customer deposits	$ 13,200

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Supplemental Disclosure to Statements of Cash Flows (Tables)

12 Months Ended

Oct. 31, 2019

Supplemental Cash Flow Elements [Abstract]

Supplemental disclosures to the consolidated statements of cash flows

The following are supplemental disclosures to the Consolidated Statements of Cash Flows for each of the fiscal years ended October 31, 2019, 2018 and 2017 (amounts in thousands):

	2019			2018			2017
Cash flow information:
Interest paid, net of amount capitalized	$	35,422		$	20,812		$	21,578
Income tax payments	$	141,681		$	215,092		$	119,852
Income tax refunds	$	4,344		$	3,101		$	2,776
Noncash activity:
Cost of inventory acquired through seller financing, municipal bonds, or accrued liabilities, net	$	213,824		$	185,633		$	61,877
Financed portion of land sale							$	625
(Increase) decrease in inventory for capitalized interest, our share of earnings, and allocation of basis difference in land purchased from unconsolidated entities	$	(5,300	)	$	(1,320	)	$	11,760
Reclassification from inventory to property, construction, and office equipment, net due to the adoption of ASC 606	$	104,807
Net decrease in inventory and retained earnings due to the adoption of ASC 606	$	8,989
Net increase in accrued expenses and decrease in retained earnings due to the adoption of ASC 606	$	6,541
Net decrease in investment in unconsolidated entities and retained earnings due to the adoption of ASC 606	$	2,457
Cost of inventory acquired through foreclosure				4,609
Reclassification of deferred income from inventory to accrued liabilities							$	3,520
Cancellation of treasury stock	$	895,517
Non-controlling interest	$	38,134		$	2,801
Reclassification of inventory to property, construction, and office equipment							$	8,990
Decrease (increase) in unrecognized gain in defined benefit plans	$	4,138		$	(3,115	)	$	(1,201	)
Defined benefit plan amendment	$	4,956
Deferred tax decrease related to stock-based compensation activity included in additional paid-in capital							$	5,232
Income tax benefit (expense) recognized in total comprehensive income	$	2,265		$	(1,141	)	$	(880	)

	2019			2018		2017
Transfer of other assets to inventory, net	$	7,100		$	16,763
Transfer of inventory to investment in unconsolidated entities						$	72,757
Transfer of investment in unconsolidated entities to inventory						$	14,328
Transfer of other assets to investment in unconsolidated entities, net	$	44,139		$	60,971	1,308
Reclassification of deferred income from accrued expenses to investment in unconsolidated entities				$	5,995
Increase in investments in unconsolidated entities for change in the fair value of debt guarantees	$	928		$	623	$	130
Miscellaneous (decreases) increases to investments in unconsolidated entities	$	(1,876	)	$	1,776	$	5,117
Business Acquisitions:
Fair value of assets purchased	$	173,516				$	88,465
Liabilities assumed	$	11,143				$	5,377
Cash paid	$	162,373				$	83,088
	At October 31,
	2019			2018		2017
Cash, cash equivalents, and restricted cash
Cash and cash equivalents	$	1,286,014		$	1,182,195	$	712,829
Restricted cash and cash held by our captive title company included in receivables, prepaid expenses, and other assets	$	33,629		$	34,215	$	48,405
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows	$	1,319,643		$	1,216,410	$	761,234

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Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Oct. 31, 2019

Equity [Abstract]

Schedule of Accumulated Other Comprehensive (Loss) Income

The tables below provide, for the fiscal years ended October 31, 2019, 2018 and 2017, the components of accumulated other comprehensive (loss) income (amounts in thousands):

	2019			2018			2017
Balance, beginning of period	$	694		$	(1,910	)	$	(3,336	)
Other comprehensive (loss) income before reclassifications	(9,094		)	3,115			1,201
Gross amounts reclassified from accumulated other comprehensive income	304			953			1,105
Income tax benefit (expense)	2,265			(1,142		)	(880		)
Other comprehensive (loss) income, net of tax	(6,525		)	2,926			1,426
Adoption of ASU 2018-02	—			(322		)
Balance, end of period	$	(5,831	)	$	694		$	(1,910	)

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Stock-Based Benefit Plans (Performance-based RSUs) (Details 7) - USD ($)	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017	Dec. 20, 2016	Dec. 18, 2015	Dec. 16, 2014
Performance-Based Restricted Stock Units
Stock based expense recognized	$ 26,180,000	$ 28,312,000	$ 28,466,000
Unamortized value of RSUs	$ 18,700,000	$ 20,900,000	$ 24,200,000
Restricted Stock Units (RSUs) [Member] | Vesting Based On Performance [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum Percentage of Units Issued to Recipients of Base Award	0.00%	0.00%
Maximum Percentage of Units Issued to Recipients of Base Award	150.00%	110.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Performance-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	158,721	135,554	168,417
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	645,538	786,857	940,117
Share Price				$ 34.86	$ 47.84	$ 31.61
Fair value of restricted stock units issued	$ 5,533,000	$ 6,485,000	$ 5,324,000
Stock based expense recognized	5,514,000	6,949,000	7,031,000
Unamortized value of RSUs	3,431,000	3,824,000	4,599,000
gross value of stock awarded related to restricted stock units	$ 9,700,000	$ 13,700,000	$ 9,600,000
Gross shares distributed related to restricted stock	300,040	288,814	302,514
Value of shares withheld for income taxes on restricted shares issued	$ 4,000,000.0	$ 6,000,000.0	$ 4,200,000
Shares withheld for income taxes related to share issued for RSU	123,409	126,330	133,098
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	$ 5,700,000	$ 7,700,000	$ 5,400,000
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	176,631	162,484	169,416

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Receivables, Prepaid Expenses and Other Assets Receivables, prepaid expenses and other assets (Details Textual) - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018
Receivables, prepaid expenses and other assets [Line Items]
Escrow Deposit	$ 32,863	$ 33,471
Variable Interest Entity, Primary Beneficiary [Member]
Receivables, prepaid expenses and other assets [Line Items]
Variable Interest Entity, Consolidated, Carrying Amount, Assets	$ 125,000

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Loans Payable, Senior Notes, and Mortgage Company Loan Facility Loans Payable - other (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
Debt Instrument [Line Items]
Other Loans Payable	$ 314,577	$ 188,115
Debt, Weighted Average Interest Rate	4.49%	4.68%
Loans secured by assets [Abstract]
Secured Debt	$ 314,577	$ 152,281
Value of Assets Securing Loans	$ 850,381	$ 467,164
Loans Payable Contractual Maturities Term Minimum	2 months
Loans Payable Contractual Maturities Term Maximum	27 years
Minimum [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	1.26%	1.15%
Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	7.00%	7.87%

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Earnings Per Share Information (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017	Sep. 05, 2012
Earnings Per Share [Abstract]
Net Income Attributable to Parent	$ 202,315	$ 146,318	$ 129,324	$ 112,050	$ 310,976	$ 193,258	$ 111,810	$ 132,107	$ 590,007	$ 748,151	$ 535,495
Interest on Convertible Debt, Net of Tax											1,434
Net Income Available to Common Stockholders, Diluted									$ 590,007	$ 748,151	$ 536,929
Basic weighted-average shares	141,909	144,750	146,622	146,751	148,066	151,257	152,731	155,882	145,008	151,984	162,222
Common stock equivalents									1,493	2,217	2,147
Incremental Common Shares Attributable to Conversion of Debt Securities											5,118
Diluted weighted-average shares	143,567	146,275	148,129	148,032	149,603	153,173	155,129	158,897	146,501	154,201	169,487
Debt Instrument [Line Items]
Shares Issued under Stock Incentive and Employee Stock Purchase Plans									1,394	1,066	3,116
Restricted Stock Units RSU And Employee Stock Option Member [Member]
Debt Instrument [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount									1,156	813	1,966
Senior Notes Due 2032 [Member]
Earnings Per Share [Abstract]
Debt Instrument, Interest Rate, Stated Percentage												0.50%

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Accumulated Other Comprehensive Loss

12 Months Ended

Oct. 31, 2019

Equity [Abstract]

Accumulated Other Comprehensive Loss and Total Comprehensive Income (Loss)

Accumulated Other Comprehensive (Loss) Income

Accumulated other comprehensive (loss) income was primarily related to employee retirement plans. The tables below provide, for the fiscal years ended October 31, 2019, 2018 and 2017, the components of accumulated other comprehensive (loss) income (amounts in thousands):

	2019			2018			2017
Balance, beginning of period	$	694		$	(1,910	)	$	(3,336	)
Other comprehensive (loss) income before reclassifications	(9,094		)	3,115			1,201
Gross amounts reclassified from accumulated other comprehensive income	304			953			1,105
Income tax benefit (expense)	2,265			(1,142		)	(880		)
Other comprehensive (loss) income, net of tax	(6,525		)	2,926			1,426
Adoption of ASU 2018-02	—			(322		)
Balance, end of period	$	(5,831	)	$	694		$	(1,910	)

During the first quarter of fiscal 2018, we elected to reclassify the stranded tax effects resulting from the Tax Act related to employee retirement plans from accumulated other comprehensive income to retained earnings. See Note 1, “Significant Accounting Polices,” for additional information regarding the adoption of ASU 2018-02.

Reclassifications for the amortization of the employee retirement plans are included in “Other income – net” in the Consolidated Statements of Operations and Comprehensive Income.

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Other Income (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Schedule of Equity Method Investments [Line Items]
Income from Ancillary Businesses	$ 53,568	$ 25,692	$ 18,934
Proceeds from Sale of Productive Assets	79,647
Gain (Loss) on Disposition of Business	36,277
Golf Club Properties [Member]
Schedule of Equity Method Investments [Line Items]
Proceeds from Sale of Productive Assets	64,300
Gain (Loss) on Disposition of Business	35,100
Security Monitoring Business [Member]
Schedule of Equity Method Investments [Line Items]
Income from Ancillary Businesses		10,700
Apartment living [Member]
Schedule of Equity Method Investments [Line Items]
Income from Ancillary Businesses		3,500
Apartment living [Member]
Schedule of Equity Method Investments [Line Items]
Income from Ancillary Businesses	$ 11,900	$ 7,500	$ 6,200

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Information on Segments (Details 1) - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018
Inventory
Inventory	$ 7,873,048	$ 7,598,219
Land controlled for future communities [Member]
Inventory
Inventory	182,929	139,985
Land Owned for Future Communities [Member]
Inventory
Inventory	868,202	916,616
Operating communities [Member]
Inventory
Inventory	6,821,917	6,541,618
North [Member]
Inventory
Inventory	852,719	920,489
North [Member] | Land controlled for future communities [Member]
Inventory
Inventory	24,575	17,414
North [Member] | Land Owned for Future Communities [Member]
Inventory
Inventory	64,129	99,383
North [Member] | Operating communities [Member]
Inventory
Inventory	764,015	803,692
Mid-Atlantic [Member]
Inventory
Inventory	1,114,197	1,078,761
Mid-Atlantic [Member] | Land controlled for future communities [Member]
Inventory
Inventory	53,375	48,553
Mid-Atlantic [Member] | Land Owned for Future Communities [Member]
Inventory
Inventory	96,634	123,218
Mid-Atlantic [Member] | Operating communities [Member]
Inventory
Inventory	964,188	906,990
South [Member]
Inventory
Inventory	1,206,703	1,064,935
South [Member] | Land controlled for future communities [Member]
Inventory
Inventory	15,622	12,305
South [Member] | Land Owned for Future Communities [Member]
Inventory
Inventory	134,697	95,309
South [Member] | Operating communities [Member]
Inventory
Inventory	1,056,384	957,321
West [Member]
Inventory
Inventory	1,983,892	1,552,565
West [Member] | Land controlled for future communities [Member]
Inventory
Inventory	25,340	22,905
West [Member] | Land Owned for Future Communities [Member]
Inventory
Inventory	34,165	109,671
West [Member] | Operating communities [Member]
Inventory
Inventory	1,924,387	1,419,989
California [Member]
Inventory
Inventory	2,260,138	2,570,032
California [Member] | Land controlled for future communities [Member]
Inventory
Inventory	64,017	32,441
California [Member] | Land Owned for Future Communities [Member]
Inventory
Inventory	353,186	391,221
California [Member] | Operating communities [Member]
Inventory
Inventory	1,842,935	2,146,370
Traditional Homebuilding [Member]
Inventory
Inventory	7,417,649	7,186,782
Traditional Homebuilding [Member] | Land controlled for future communities [Member]
Inventory
Inventory	182,929	133,618
Traditional Homebuilding [Member] | Land Owned for Future Communities [Member]
Inventory
Inventory	682,811	818,802
Traditional Homebuilding [Member] | Operating communities [Member]
Inventory
Inventory	6,551,909	6,234,362
City Living [Member]
Inventory
Inventory	455,399	411,437
City Living [Member] | Land controlled for future communities [Member]
Inventory
Inventory		6,367
City Living [Member] | Land Owned for Future Communities [Member]
Inventory
Inventory	185,391	97,814
City Living [Member] | Operating communities [Member]
Inventory
Inventory	$ 270,008	$ 307,256

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Supplemental Disclosure to Statements of Cash Flows

12 Months Ended

Oct. 31, 2019

Supplemental Cash Flow Elements [Abstract]

Cash Flow, Supplemental Disclosures [Text Block]

Supplemental Disclosure to Consolidated Statements of Cash Flows

The following are supplemental disclosures to the Consolidated Statements of Cash Flows for each of the fiscal years ended October 31, 2019, 2018 and 2017 (amounts in thousands):

	2019			2018			2017
Cash flow information:
Interest paid, net of amount capitalized	$	35,422		$	20,812		$	21,578
Income tax payments	$	141,681		$	215,092		$	119,852
Income tax refunds	$	4,344		$	3,101		$	2,776
Noncash activity:
Cost of inventory acquired through seller financing, municipal bonds, or accrued liabilities, net	$	213,824		$	185,633		$	61,877
Financed portion of land sale							$	625
(Increase) decrease in inventory for capitalized interest, our share of earnings, and allocation of basis difference in land purchased from unconsolidated entities	$	(5,300	)	$	(1,320	)	$	11,760
Reclassification from inventory to property, construction, and office equipment, net due to the adoption of ASC 606	$	104,807
Net decrease in inventory and retained earnings due to the adoption of ASC 606	$	8,989
Net increase in accrued expenses and decrease in retained earnings due to the adoption of ASC 606	$	6,541
Net decrease in investment in unconsolidated entities and retained earnings due to the adoption of ASC 606	$	2,457
Cost of inventory acquired through foreclosure				4,609
Reclassification of deferred income from inventory to accrued liabilities							$	3,520
Cancellation of treasury stock	$	895,517
Non-controlling interest	$	38,134		$	2,801
Reclassification of inventory to property, construction, and office equipment							$	8,990
Decrease (increase) in unrecognized gain in defined benefit plans	$	4,138		$	(3,115	)	$	(1,201	)
Defined benefit plan amendment	$	4,956
Deferred tax decrease related to stock-based compensation activity included in additional paid-in capital							$	5,232
Income tax benefit (expense) recognized in total comprehensive income	$	2,265		$	(1,141	)	$	(880	)

	2019			2018		2017
Transfer of other assets to inventory, net	$	7,100		$	16,763
Transfer of inventory to investment in unconsolidated entities						$	72,757
Transfer of investment in unconsolidated entities to inventory						$	14,328
Transfer of other assets to investment in unconsolidated entities, net	$	44,139		$	60,971	1,308
Reclassification of deferred income from accrued expenses to investment in unconsolidated entities				$	5,995
Increase in investments in unconsolidated entities for change in the fair value of debt guarantees	$	928		$	623	$	130
Miscellaneous (decreases) increases to investments in unconsolidated entities	$	(1,876	)	$	1,776	$	5,117
Business Acquisitions:
Fair value of assets purchased	$	173,516				$	88,465
Liabilities assumed	$	11,143				$	5,377
Cash paid	$	162,373				$	83,088
	At October 31,
	2019			2018		2017
Cash, cash equivalents, and restricted cash
Cash and cash equivalents	$	1,286,014		$	1,182,195	$	712,829
Restricted cash and cash held by our captive title company included in receivables, prepaid expenses, and other assets	$	33,629		$	34,215	$	48,405
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows	$	1,319,643		$	1,216,410	$	761,234

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Inventory (Tables)

12 Months Ended

Oct. 31, 2019

Inventory Disclosure [Abstract]

Inventory

Inventory at October 31, 2019 and 2018 consisted of the following (amounts in thousands):

	2019		2018
Land controlled for future communities	$	182,929	$	139,985
Land owned for future communities	868,202		916,616
Operating communities	6,821,917		6,541,618
	$	7,873,048	$	7,598,219

Temporarily Closed communities

Information regarding the classification, number, and carrying value of these temporarily closed communities at October 31, 2019, 2018, and 2017, is provided in the table below ($ amounts in thousands):

	2019		2018		2017
Land owned for future communities:
Number of communities	16		17		14
Carrying value (in thousands)	$	120,857	$	124,426	$	110,732
Operating communities:
Number of communities	1		1		6
Carrying value (in thousands)	$	2,871	$	2,622	$	26,749

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

We provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable in each of the three fiscal years ended October 31, 2019, 2018, and 2017, as shown in the table below (amounts in thousands):

Charge:	2019		2018		2017
Land controlled for future communities	$	11,285	$	2,820	$	1,949
Land owned for future communities	—		2,185		3,050
Operating communities	31,075		30,151		9,795
	$	42,360	$	35,156	$	14,794

Interest incurred, capitalized and expensed

Interest incurred, capitalized, and expensed in each of the three fiscal years ended October 31, 2019, 2018, and 2017, was as follows (amounts in thousands):

	2019			2018			2017
Interest capitalized, beginning of year	$	319,364		$	352,049		$	369,419
Interest incurred	178,035			165,977			175,944
Interest expensed to home sales cost of revenues	(185,045		)	(190,734		)	(172,832		)
Interest expensed to land sales cost of revenues	(1,787		)
Interest expensed in other income				(3,760		)	(4,823		)
Interest reclassified to property, construction and office equipment							(485		)
Interest capitalized on investments in unconsolidated entities	(4,571		)	(7,220		)	(8,824		)
Previously capitalized interest transferred to investments in unconsolidated entities							(8,708		)
Previously capitalized interest on investments in unconsolidated entities transferred to inventory	5,327			3,052			2,358
Interest capitalized, end of year	$	311,323		$	319,364		$	352,049

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Loans Payable, Senior Notes, and Mortgage Company Loan Facility

12 Months Ended

Oct. 31, 2019

Debt Disclosure [Abstract]

Loans Payable, Senior Notes, and Mortgage Company Warehouse Loan

Loans Payable, Senior Notes, and Mortgage Company Loan Facility

Loans Payable

At October 31, 2019 and 2018, loans payable consisted of the following (amounts in thousands):

	2019			2018
Senior unsecured term loan	$	800,000		$	500,000
Loans payable – other	314,577			188,115
Deferred issuance costs	(3,128		)	(1,314		)
	$	1,111,449		$	686,801

Senior Unsecured Term Loan

At October 31, 2019, we had a $800.0 million, five-year senior unsecured term loan facility (the “Term Loan Facility”) with a syndicate of banks. On November 1, 2018, we amended the Term Loan Facility to, among other things, (i) increase the size of the outstanding term loan from $500.0 million to $800.0 million; (ii) extend the maturity date from August 2021 to November 1, 2023 (which was subsequently extended to November 1, 2024), with no principal payments being required before the maturity date; (iii) provide an accordion feature under which we may, subject to certain conditions set forth in the agreement, increase the Term Loan Facility up to a maximum aggregate amount of $1.0 billion; (iv) revise certain provisions to reduce the interest rate applicable on outstanding borrowings; and (v) modify certain provisions relating to existing financial maintenance and negative covenants. We subsequently amended the maturity date on October 31, 2019 to extend it to November 1, 2024. We and substantially all of our 100%-owned home building subsidiaries are guarantors under the Term Loan Facility.

Under the terms of the Term Loan Facility, at October 31, 2019, our maximum leverage ratio, as defined, may not exceed 1.75 to 1.00, and we are required to maintain a minimum tangible net worth, as defined, of no less than approximately $2.70 billion. Under the terms of the Term Loan Facility, at October 31, 2019, our leverage ratio was approximately 0.50 to 1.00, and our tangible net worth was approximately $5.02 billion. Based upon the limitations related to our repurchase of common stock in the Term Loan Facility, our ability to repurchase our common stock was limited to approximately $3.53 billion as of October 31, 2019. In addition, our ability to pay cash dividends was limited to approximately $2.32 billion as of October 31, 2019.

Under the Term Loan Facility, as amended, we may select interest rates equal to (i) London Interbank Offered Rate (“LIBOR”) plus an applicable margin, (ii) the base rate (as defined in the agreement) plus an applicable margin, or (iii) the federal funds/Euro rate (as defined in the agreement) plus an applicable margin, in each case, based on our leverage ratio. At October 31, 2019, the interest rate on the Term Loan Facility was 3.11% per annum.

We and substantially all of our 100%-owned home building subsidiaries are guarantors under the Term Loan Facility. The Term Loan Facility contains substantially the same financial covenants as the Revolving Credit Facility, as described below.

Revolving Credit Facility

We have a $1.905 billion senior unsecured, five-year revolving credit facility (the “Revolving Credit Facility”) with a syndicate of banks that is scheduled to expire on November 1, 2024. On October 31, 2019, we amended our Revolving Credit Facility to replace our existing $1.295 billion revolving credit facility, which was scheduled to mature in May 2021. Under the amended terms, up to 100% of the commitment is available for letters of credit. The Revolving Credit Facility, as amended, has an accordion feature under which we may, subject to certain conditions set forth in the agreement, increase the Revolving Credit Facility up to a maximum aggregate amount of $2.5 billion. Prior to the amendment, the maximum aggregate amount of the accordion feature was $2.0 billion. We may select interest rates for the Revolving Credit Facility equal to (i) LIBOR plus an applicable margin or (ii) the lenders’ base rate plus an applicable margin, which in each case is based on our credit rating and leverage ratio. At October 31, 2019, the interest rate on outstanding borrowings under the Revolving Credit Facility would have been 3.31% per annum. We are obligated to pay an undrawn commitment fee that is based on the average daily unused amount of the Aggregate Credit Commitment and our credit ratings and leverage ratio. Any proceeds from borrowings under the Revolving Credit Facility may be used for general corporate purposes. We and substantially all of our 100%-owned home building subsidiaries are guarantors under the Revolving Credit Facility.

Under the terms of the Revolving Credit Facility, at October 31, 2019, our maximum leverage ratio (as defined in the credit agreement) may not exceed 1.75 to 1.00, and we are required to maintain a minimum tangible net worth (as defined in the credit agreement) of no less than approximately $2.70 billion. Under the terms of the Revolving Credit Facility, at October 31, 2019, our leverage ratio was approximately 0.50 to 1.00 and our tangible net worth was approximately $5.02 billion. Based upon the limitations related to our repurchase of common stock in the Revolving Credit Facility, our ability to repurchase our

common stock was limited to approximately $3.53 billion as of October 31, 2019. In addition, under the provisions of the Revolving Credit Facility, our ability to pay cash dividends was limited to approximately $2.32 billion as of October 31, 2019.

At October 31, 2019, we had no outstanding borrowings under the Revolving Credit Facility and had outstanding letters of credit of approximately $177.9 million.

Loans Payable – Other

“Loans payable – other” primarily represent purchase money mortgages on properties we acquired that the seller had financed and various revenue bonds that were issued by government entities on our behalf to finance community infrastructure and our manufacturing facilities. Information regarding our loans payable at October 31, 2019 and 2018, is included in the table below ($ amounts in thousands):

	2019			2018
Aggregate loans payable at October 31	$	314,577		$	188,115
Weighted-average interest rate	4.49		%	4.68		%
Interest rate range	1.26% - 7.00%			1.15% - 7.87%
Loans secured by assets
Carrying value of loans secured by assets	$	314,577		$	152,281
Carrying value of assets securing loans	$	850,381		$	467,164

The contractual maturities of “Loans payable – other” as of October 31, 2019, ranged from two months to 27 years.

Senior Notes

At October 31, 2019 and 2018, senior notes consisted of the following (amounts in thousands):

	2019			2018
4.00% Senior Notes due December 31, 2018	$	—		$	350,000
6.75% Senior Notes due November 1, 2019	—			250,000
5.875% Senior Notes due February 15, 2022	419,876			419,876
4.375% Senior Notes due April 15, 2023	400,000			400,000
5.625% Senior Notes due January 15, 2024	250,000			250,000
4.875% Senior Notes due November 15, 2025	350,000			350,000
4.875% Senior Notes due March 15, 2027	450,000			450,000
4.35% Senior Notes due February 15, 2028	400,000			400,000
3.80% Senior Notes due November 1, 2029	400,000			—
Bond discounts, premiums, and deferred issuance costs, net	(9,978		)	(8,501		)
	$	2,659,898		$	2,861,375

The senior notes are the unsecured obligations of Toll Brothers Finance Corp., our 100%-owned subsidiary. The payment of principal and interest is fully and unconditionally guaranteed, jointly and severally, by us and substantially all of our 100%-owned home building subsidiaries (together with Toll Brothers Finance Corp., the “Senior Note Parties”). The senior notes rank equally in right of payment with all the Senior Note Parties’ existing and future unsecured senior indebtedness, including the Revolving Credit Facility and the Term Loan Facility. The senior notes are structurally subordinated to the prior claims of creditors, including trade creditors, of our subsidiaries that are not guarantors of the senior notes. Each series of senior notes is redeemable in whole or in part at any time at our option, at prices that vary based upon the then-current rates of interest and the remaining original term of the senior notes to be redeemed.

On October 31, 2019, we redeemed, prior to maturity, the $250.0 million of then-outstanding principal amount of 6.75% Senior Notes due November 1, 2019, at par, plus accrued interest.

In September 2019, we issued $400.0 million aggregate principal amount of 3.80% Senior Notes due 2029. The Company received $396.4 million of net proceeds from the issuance of these senior notes.

On November 30, 2018, we redeemed, prior to maturity, the $350.0 million of then-outstanding principal amount of 4.00% Senior Notes due December 31, 2018, at par, plus accrued interest.

In January 2018, we issued $400.0 million aggregate principal amount of 4.350% Senior Notes due 2028. The Company received $396.4 million of net proceeds from the issuance of these senior notes.

On September 15, 2017, we redeemed all $287.5 million aggregate principal amount of the 0.5% Exchangeable Senior Notes for cash at a redemption price of 100% of their principal amount, plus accrued and unpaid interest. The 0.5% Exchangeable Senior Notes were exchangeable into shares of our common stock at an exchange rate of 20.3749 shares per $1,000 principal amount of notes, corresponding to an initial exchange price of approximately $49.08 per share of common stock. If all of the 0.5% Exchangeable Senior Notes were exchanged, we would have issued approximately 5.9 million shares of our common stock. Shares issuable upon conversion of the 0.5% Exchangeable Senior Notes were included in the calculation of diluted earnings per share.

Mortgage Company Loan Facility

In October 2017, TBI Mortgage^® Company (“TBI Mortgage”), our wholly owned mortgage subsidiary, entered into a mortgage warehousing agreement (“Warehousing Agreement”) with a bank to finance the origination of mortgage loans by TBI Mortgage. The Warehousing Agreement is accounted for as a secured borrowing under ASC 860, “Transfers and Servicing.” In December 2018, the Warehousing Agreement was amended to provide for loan purchases up to $75.0 million, subject to certain sublimits. In addition, the Warehousing Agreement, as amended, provides for an accordion feature under which TBI Mortgage may request that the aggregate commitments under the Warehousing Agreement be increased to an amount up to $150.0 million for a short period of time. Prior to the December 2018 amendment, the Warehousing Agreement was operating pursuant to the December 2017 amendment which had substantially similar terms to the December 2018 amendment. The Warehousing Agreement, as amended, expires on December 6, 2019, and borrowings thereunder bear interest at LIBOR plus 1.90% per annum. At October 31, 2019, the interest rate on the Warehousing Agreement was 3.68% per annum. In addition, we are subject to an under usage fee based on outstanding balances, as defined in the Warehousing Agreement. Borrowings under this facility are included in the fiscal 2020 maturities.

At each of October 31, 2019 and 2018, there was $150.0 million outstanding under the Warehousing Agreement, which are included in liabilities in our Consolidated Balance Sheets. At October 31, 2019 and 2018, amounts outstanding under the agreement were collateralized by $208.6 million and $163.2 million, respectively, of mortgage loans held for sale, which are included in assets in our Consolidated Balance Sheets. As of October 31, 2019, there were no aggregate outstanding purchase price limitations reducing the amount available to TBI Mortgage. There are several restrictions on purchased loans under the agreement, including that they cannot be sold to others, they cannot be pledged to anyone other than the agent, and they cannot support any other borrowing or repurchase agreements.

Subsequent event

In December 2019, TBI Mortgage amended the Warehousing Agreement to extend the expiration date to December 4, 2020 on substantially the same terms as the existing agreement.

General

As of October 31, 2019, the annual aggregate maturities of our loans and notes during each of the next five fiscal years are as follows (amounts in thousands):

	Amount
2020	$	234,096
2021	$	52,863
2022	$	437,818
2023	$	421,611
2024	$	290,745

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Supplemental Guarantor Information (Level 4 Senior Note table) (Details) - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018	Jan. 31, 2018	Sep. 05, 2012
Supplemental Guarantor Information (Textual) [Abstract]
Senior notes	$ 2,659,898	$ 2,861,375
Senior Notes Due 2022 [Member]
Supplemental Guarantor Information (Textual) [Abstract]
Senior notes	$ 419,876
Interest rate on notes	5.875%
Senior Notes Due 2023 [Member]
Supplemental Guarantor Information (Textual) [Abstract]
Senior notes	$ 400,000
Interest rate on notes	4.375%
Senior Notes Due 2024 [Member]
Supplemental Guarantor Information (Textual) [Abstract]
Senior notes	$ 250,000
Interest rate on notes	5.63%
4.875% Senior Notes Due 2025 [Member]
Supplemental Guarantor Information (Textual) [Abstract]
Senior notes	$ 350,000	350,000
Interest rate on notes	4.875%
4.875% Senior Notes Due 2027 [Member]
Supplemental Guarantor Information (Textual) [Abstract]
Senior notes	$ 450,000	450,000
Interest rate on notes	4.875%
4.350% Senior Notes Due 2028 [Member]
Supplemental Guarantor Information (Textual) [Abstract]
Senior notes	$ 400,000	400,000	$ 400,000
Interest rate on notes	4.35%		4.35%
Senior Notes Due 2032 [Member]
Supplemental Guarantor Information (Textual) [Abstract]
Interest rate on notes				0.50%
3.80% Senior Notes Due 2029 [Member]
Supplemental Guarantor Information (Textual) [Abstract]
Senior notes	$ 400,000	$ 0
Interest rate on notes	3.80%

XML

Supplemental Guarantor Information (Level 4 Textuals) (Details)	Oct. 31, 2019
Subsidiary Issuer [Member]
Entity Information [Line Items]
Subsidiary of Company, Ownership Percentage by Parent	100.00%
Guarantor Subsidiaries [Member]
Entity Information [Line Items]
Subsidiary of Company, Ownership Percentage by Parent	100.00%

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Stock-Based Benefit Plans

12 Months Ended

Oct. 31, 2019

Stock-Based Benefit Plans [Abstract]

Stock-Based Benefit Plans

Stock-Based Benefit Plans

We grant stock options, restricted stock, and various types of restricted stock units to our employees and our nonemployee directors under our stock incentive plans. On March 12, 2019, shareholders approved the Toll Brothers, Inc. 2019 Omnibus Incentive Plan (the “Omnibus Plan”), which, succeeded the Toll Brothers, Inc. Stock Incentive Plan for Employees (2014) and the Toll Brothers, Inc. Stock Incentive Plan for Non-Executive Directors (2016) with respect to prospective equity awards, and no additional equity awards may be granted under such prior plans. As a result, the Omnibus Plan is the sole plan that new equity awards may be granted to employees (including executive officers), directors and other eligible participants under the plan. The Omnibus Plan provides for the granting of incentive stock options (solely to employees) and nonqualified stock options with a term of up to 10 years at a price not less than the market price of the stock at the date of grant. The Omnibus Plan also provide for the issuance of stock appreciation rights and restricted and unrestricted stock awards and stock units, which may be performance-based. At October 31, 2019, 2018, and 2017, we had 7.7 million; 5.1 million; and 5.8 million shares, respectively, available for grant under the Omnibus Plan.

Prior to the adoption of the Omnibus Plan, the Company had granted equity awards under four separate stock incentive plans for employees, officers, and directors with respect to which equity awards remained outstanding as of October 31, 2019. No additional equity awards may be granted under these plans. Stock options granted under these plans were made with a term of up to 10 years at a price not less than the market price of the stock at the date of grant. Stock options and restricted stock units granted under these plans generally vested over a four-year period for employees and a two-year period for nonemployee directors.

The following table provides information regarding the amount of total stock-based compensation expense recognized by us for fiscal 2019, 2018, and 2017 (amounts in thousands):

	2019		2018		2017
Total stock-based compensation expense recognized	$	26,180	$	28,312	$	28,466
Income tax benefit recognized	$	6,749	$	7,902	$	11,125

At October 31, 2019, 2018, and 2017, the aggregate unamortized value of outstanding stock-based compensation awards was approximately $18.7 million, $20.9 million, and $24.2 million, respectively.

Information about our more significant stock-based compensation programs is outlined below.

Stock Options:

Stock options granted to employees generally vest over a four-year period, although certain grants may vest over a longer or shorter period. Stock options granted to nonemployee directors generally vest over a two-year period. Shares issued upon the exercise of a stock option are either from shares held in treasury or newly issued shares.

The fair value of each option award is estimated on the date of grant using a lattice-based option valuation model that uses ranges of assumptions noted in the following table. Expected volatilities were based on implied volatilities from traded options on our stock, historical volatility of our 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 ranges set forth below result 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 following table summarizes the weighted-average assumptions and fair value used for stock option grants in each of the fiscal years ended October 31, 2019, 2018, and 2017:

	2019	2018	2017
Expected volatility	28.61% - 31.34%	27.66% - 31.83%	29.93% - 41.05%
Weighted-average volatility	30.46%	30.33%	34.72%
Risk-free interest rate	2.65% - 2.76%	2.17% - 2.35%	1.96% - 2.52%
Expected life (years)	4.63 - 8.50	5.00 - 8.50	4.60 - 9.24
Dividends	1.36%	0.67%	none
Weighted-average fair value per share of options granted	$10.22	$16.09	$12.16

The fair value of stock option grants is recognized evenly over the vesting period of the options or over the period between the grant date and the time the option becomes nonforfeitable by the employee, whichever is shorter. Information regarding the stock compensation expense related to stock options for fiscal 2019, 2018 and 2017 was as follows (amounts in thousands):

	2019		2018		2017
Stock compensation expense recognized - options	$	5,181	$	7,497	$	10,337

At October 31, 2019, total compensation cost related to nonvested stock option awards not yet recognized was approximately $4.7 million, and the weighted-average period over which we expect to recognize such compensation costs was approximately 1.2 years.

The following table summarizes stock option activity for our plans during each of the fiscal years ended October 31, 2019, 2018, and 2017 (amounts in thousands, except per share amounts):

	2019				2018				2017
	Number of options		Weighted- average exercise price		Number of options		Weighted- average exercise price		Number of options		Weighted- average exercise price
Balance, beginning	5,503		$	28.84	6,120		$	27.60	8,514		$	26.36
Granted	344		32.42		210		47.84		595		31.61
Exercised	(1,044	)	21.87		(797	)	24.16		(2,863	)	24.54
Canceled	(23	)	34.47		(30	)	33.08		(126	)	32.10
Balance, ending	4,780		$	30.59	5,503		$	28.84	6,120		$	27.60
Options exercisable, at October 31,	3,799		$	29.52	4,231		$	27.03	4,266		$	25.42

The weighted average remaining contractual life (in years) for options outstanding and exercisable at October 31, 2019, was 4.8 and 4.0, respectively.

The intrinsic value of options outstanding and exercisable is the difference between the fair market value of our common stock on the applicable date (“Measurement Value”) and the exercise price of those options that had an exercise price that was less than the Measurement Value. The intrinsic value of options exercised is the difference between the fair market value of our common stock on the date of exercise and the exercise price.

The following table provides information pertaining to the intrinsic value of options outstanding and exercisable at October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019		2018		2017
Intrinsic value of options outstanding	$	45,551	$	30,477	$	112,886
Intrinsic value of options exercisable	$	39,350	$	29,010	$	87,978

Information pertaining to the intrinsic value of options exercised and the fair market value of options that became vested or modified in each of the fiscal years ended October 31, 2019, 2018, and 2017, is provided below (amounts in thousands):

	2019		2018		2017
Intrinsic value of options exercised	$	16,491	$	18,165	$	32,951
Fair market value of options vested	$	7,723	$	10,007	$	10,897

Our stock option plans permit optionees to exercise stock options using a “net exercise” method at the discretion of the Executive Compensation Committee of the Board of Directors (“Executive Compensation Committee”). In a net exercise, we withhold from the total number of shares that otherwise would be issued to an optionee 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 minimum income tax withholdings and remit the remaining shares to the optionee. In fiscal 2018, the net exercise method was not utilized to exercise options.

The following table provides information regarding the use of the net exercise method for fiscal 2019 and 2017:

	2019		2017
Options exercised	33,250		15,000
Shares withheld	21,842		14,472
Shares issued	11,408		528
Average fair market value per share withheld	$	33.03	$	32.98
Aggregate fair market value of shares withheld (in thousands)	$	721	$	477

Performance-Based Restricted Stock Units:

In fiscal 2019, 2018, and 2017, the Executive Compensation Committee approved awards of performance-based restricted stock units (“Performance-Based RSUs”) relating to shares of our common stock to certain members of our senior management. The number of shares earned for Performance-Based RSUs are based on the attainment of certain operational performance metrics approved by the Executive Compensation Committee in the year of grant. The number of shares underlying the Performance-Based RSUs that may be issued to the recipients ranges from, 0% to 150% for grants awarded in fiscal 2019 and 0% to 110% for grants awarded in fiscal 2018 and prior, of the base award depending on actual achievement as compared to the target performance goals. Shares earned based on actual performance generally vest pro-rata over a four-year period provided the recipients continue to be employed by us 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 our common stock to be issued multiplied by the closing price of our common stock on the New York Stock Exchange (“NYSE”) on the date the Performance-Based RSU awards were approved by the Executive Compensation Committee (“Valuation Date”). We evaluate the performance goals quarterly and estimate the number of shares underlying the Performance-Based RSUs that are probable of being issued. The following table provides information regarding the issuance, valuation assumptions, and amortization of the Performance-Based RSUs issued in fiscal 2019, 2018, and 2017:

	2019		2018		2017
Number of shares underlying Performance-Based RSUs to be issued	158,721		135,554		168,417
Aggregate number of Performance-Based RSUs outstanding at October 31	645,538		786,857		940,117
Closing price of our common stock on Valuation Date	$	34.86	$	47.84	$	31.61
Aggregate grant date fair value of Performance-Based RSUs issued (in thousands)	$	5,533	$	6,485	$	5,324
Performance-Based RSU expense recognized (in thousands)	$	5,514	$	6,949	$	7,031
Unamortized value of Performance-Based RSUs at October 31 (in thousands)	$	3,431	$	3,824	$	4,599

Shares earned with respect to Performance-Based RSUs issued in December 2012, 2013, and 2014 were delivered in fiscal 2017, 2018, and 2019, respectively. The recipients of these Performance-Based RSUs elected to use a portion of the shares underlying the Performance-Based RSUs to pay the required income withholding taxes on the payout. In fiscal 2019, the gross value of the payout was $9.7 million (300,040 shares), the minimum income tax withholding was $4.0 million (123,409 shares) and the net value of the shares delivered was $5.7 million (176,631 shares). In fiscal 2018, the gross value of the payout was $13.7 million (288,814 shares), the minimum income tax withholding was $6.0 million (126,330 shares) and the net value of the shares delivered was $7.7 million (162,484 shares). In fiscal 2017, the gross value of the payout was $9.6 million (302,514 shares), the minimum income tax withholding was $4.2 million (133,098 shares) and the net value of the shares delivered was $5.4 million (169,416 shares).

Total Shareholder Return Restricted Stock Units:

In fiscal 2019, 2018, and 2017, the Executive Compensation Committee approved awards of relative total shareholder return performance-based restricted stock units (“TSR RSUs”) relating to 48,710, 39,411 and 46,361 target shares, respectively, of our common stock to certain members of our senior management. Shares underlying the TSR RSUs granted are earned by comparing our total shareholder return during specified performance periods to the total shareholder returns of companies in a performance peer group as defined in the award document. The specified performance periods are as follows:

	Performance Period	Target Number of TSR RSUs issued
Fiscal 2019	November 1, 2018 to October 31, 2021	48,710
Fiscal 2018	November 1, 2017 to October 31, 2020	39,411
Fiscal 2017	November 1, 2016 to October 31, 2019	46,361

The TSR RSUs generally vest at the end of a 3-year period provided the recipients continue to be employed by us as specified in the award document. Based upon our ranking in the performance peer group, the recipient of the TSR RSUs may earn a total award ranging from 0% to 150% for awards granted in fiscal 2019 and 0% to 200% for awards granted in fiscal 2018 and prior, of the target number of TSR RSUs granted. In fiscal 2019, recipients of the fiscal 2017 TSR RSUs earned 0% of the target based on total shareholder return ranking in the performance peer group during the three-year period ending October 31, 2019. In fiscal 2018, recipients earned 76.81% of the 52,679 target TSR RSUs awarded in fiscal 2016 based upon our total shareholder return ranking in the performance peer group during the three-year period ended October 31, 2018. In fiscal 2017, recipients of earned 83.05% of the 57,230 target TSR RSUs awarded in fiscal 2016 based upon our total shareholder return ranking in the performance peer group during the two-year period ended October 31, 2017.

We estimated the fair value of the TSR RSUs at the grant date using a Monte Carlo simulation. The following table summarizes the assumptions used in the Monte Carlo simulation and the fair value per share of the TSR RSUs granted in fiscal 2019, 2018, and 2017:

	2019	2018	2017
Weighted-average volatility	29.06%	26.58%	26.91%
Risk-free interest rate	2.64%	1.92%	1.52%
Dividends	none	none	none
Weighted-average fair value per share of TSR RSUs	$36.46	$52.62	$39.21

The length of each performance period was used as the expected term in the simulation for each respective tranche.

The following table provides information on expense recognized and the unamortized value of our TSR RSUs for fiscal 2019, 2018, and 2017 (amounts in thousands):

	2019		2018		2017
TSR RSUs expense recognized	$	1,673	$	2,502	$	3,400
Unamortized value of TSR RSUs at October 31	$	1,875	$	1,773	$	2,200

Our stock incentive plans permit us to withhold from the total number of shares that otherwise would be issued to a TSR RSU 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. The following table provides

information regarding the number of shares withheld, the income tax withholding due, and the remaining shares issued to the recipients for fiscal 2019 and 2018:

	2019		2018
Number of shares withheld	16,643		13,974
Income tax withholdings due	$	537,902	$	470,364
Remaining shares issued to the recipients	23,817		33,553

Time-Based Restricted Stock Units:

In fiscal 2019, 2018, and 2017, we issued time-based restricted stock units (“RSUs”) to various officers, employees, and nonemployee directors. These RSUs generally vest in annual installments over a two- to four-year period. The value of the RSUs was determined to be equal to the number of shares of our common stock underlying the RSUs multiplied by the closing price of our common stock on the NYSE on the date the RSUs were awarded. The following table provides information regarding these RSUs for fiscal 2019, 2018, and 2017:

	2019		2018		2017
Time-Based RSUs issued:
Number of RSUs issued	449,380		296,790		377,564
Weighted average closing price per share of our common stock on date of issuance	$	33.04	$	47.84	$	31.61
Aggregate fair value of RSUs issued (in thousands)	$	14,848	$	14,198	$	11,935
Time-Based RSU expense recognized (in thousands):	$	13,627	$	11,193	$	7,572

	2019		2018		2017
At October 31:
Aggregate number of Time-Based RSUs outstanding	1,137,936		850,853		673,224
Cumulative unamortized value of Time-Based RSUs (in thousands)	$	8,694	$	8,818	$	6,783

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. The following table provides information regarding the number of shares withheld, the income tax withholding due, and the remaining shares issued to the recipients for fiscal 2019, 2018, and 2017:

	2019		2018		2017
Number of shares withheld	29,681		23,289		20,400
Income tax withholdings due	$	1,042	$	1,145	$	664,300
Remaining shares issued to the recipients	82,795		58,552		52,757

Employee Stock Purchase Plan

Our employee stock purchase plan enables substantially all employees to purchase our common stock at 95% of the market price of the stock on specified offering dates without restriction or at 85% of the market price of the stock on specified offering dates subject to restrictions. The plan, which terminates in December 2027, provides that 500,000 shares be reserved for purchase. At October 31, 2019, 407,000 shares were available for issuance.

The following table provides information regarding our employee stock purchase plan for fiscal 2019, 2018, and 2017:

	2019		2018		2017
Shares issued	41,744		35,471		33,314
Average price per share	$	31.80	$	34.08	$	32.25
Compensation expense recognized (in thousands)	$	184	$	171	$	147

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Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Parent [Member]	Noncontrolling Interest [Member]
Shares, Issued at Oct. 31, 2016		177,937
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Oct. 31, 2016	$ 4,235,202	$ 1,779	$ 728,464	$ 3,977,297	$ (474,912)	$ (3,336)	$ 4,229,292	$ 5,910
Net income	$ 535,495			535,495			535,495
Number of shares purchased	7,694
Purchase of treasury stock, value	$ (290,881)				(290,881)		(290,881)
Exercise of stock options and stock-based compensation issuances, shares
Exercise of stock options and stock-based compensation issuances, value	64,903		(36,896)		101,799		64,903
Employee stock purchase issuances, shares
Employee stock purchase issuances, value	1,221		81		1,140		1,221
Stock-based compensation	28,466		28,466				28,466
Dividends, Common Stock, Cash	(38,728)			(38,728)			(38,728)
Treasury Stock, Retired, Cost Method, Amount
Other Comprehensive Income (Loss)	1,426					1,426	1,426
Noncontrolling Interest, Increase from Subsidiary Equity Issuance	(14)						0	(14)
Capital contribution (distribution)
Shares, Issued at Oct. 31, 2017		177,937
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Oct. 31, 2017	4,537,090	$ 1,779	720,115	4,474,064	(662,854)	(1,910)	4,531,194	5,896
Net income	$ 748,151			748,151			748,151
Number of shares purchased	12,108
Purchase of treasury stock, value	$ (503,159)				(503,159)		(503,159)
Exercise of stock options and stock-based compensation issuances, shares
Exercise of stock options and stock-based compensation issuances, value	12,180		(21,789)		33,969		12,180
Employee stock purchase issuances, shares
Employee stock purchase issuances, value	1,209		43		1,166		1,209
Stock-based compensation	28,312		28,312				28,312
Dividends, Common Stock, Cash	(62,077)			(62,077)			(62,077)
Treasury Stock, Retired, Cost Method, Amount
Other Comprehensive Income (Loss)	2,926					2,926	2,926
Income (loss) attributable to noncontrolling interest	(15)						0	(15)
Noncontrolling Interest, Increase from Subsidiary Equity Issuance	2,832						0	2,832
Capital contribution (distribution)	30
Shares, Issued at Oct. 31, 2018		177,937
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Oct. 31, 2018	4,768,912	$ 1,779	727,053	5,161,551	(1,130,878)	694	4,760,199	8,713
Cumulative Effect of New Accounting Principle in Period of Adoption	1,463		372	1,413		(322)	1,463
Net income	$ 590,007			590,007			590,007
Number of shares purchased	6,619
Purchase of treasury stock, value	$ (233,523)				(233,523)		(233,523)
Exercise of stock options and stock-based compensation issuances, shares
Exercise of stock options and stock-based compensation issuances, value	16,024		(26,368)		42,392		16,024
Employee stock purchase issuances, shares
Employee stock purchase issuances, value	1,323		14		1,309		1,323
Stock-based compensation	26,180		26,180				26,180
Dividends, Common Stock, Cash	(63,882)			(63,882)			(63,882)
Treasury Stock, Shares, Retired		(25,000)
Treasury Stock, Retired, Cost Method, Amount	0	$ (250)		(895,267)	895,517		0
Other Comprehensive Income (Loss)	(6,525)					(6,525)	(6,525)
Income (loss) attributable to noncontrolling interest	(19)						0	(19)
Noncontrolling Interest, Increase from Subsidiary Equity Issuance	38,183						0	38,183
Capital contribution (distribution)	49
Shares, Issued at Oct. 31, 2019		152,937
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Oct. 31, 2019	5,118,693	$ 1,529	726,879	4,774,422	(425,183)	(5,831)	5,071,816	46,877
Cumulative Effect of New Accounting Principle in Period of Adoption	$ (17,987)			$ (17,987)			$ (17,987)

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Fair Value Disclosures (Tables)

12 Months Ended

Oct. 31, 2019

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

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

A summary of assets and (liabilities) at October 31, 2019 and 2018, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (amounts in thousands):

		Fair value
Financial Instrument	Fair value hierarchy	October 31, 2019			October 31, 2018
Residential Mortgage Loans Held for Sale	Level 2	$	218,777		$	170,731
Forward Loan Commitments – Residential Mortgage Loans Held for Sale	Level 2	$	298		$	1,750
Interest Rate Lock Commitments (“IRLCs”)	Level 2	$	964		$	(4,366	)
Forward Loan Commitments – IRLCs	Level 2	$	(964	)	$	4,366

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

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

At October 31,	Aggregate unpaid principal balance		Fair value		Excess
2019	$	216,280	$	218,777	$	2,497
2018	$	170,728	$	170,731	$	3

Fair value of inventory adjusted for impairment

The table below provides, for the periods indicated, the number of operating communities that we reviewed for potential impairment, the number of operating communities in which we recognized impairment charges, the amount of impairment charges recognized, and, as of the end of the period indicated, the fair value of those communities, net of impairment charges

($ amounts in thousands):

		Impaired operating communities
Three months ended:	Number of communities tested	Number of communities	Fair value of communities, net of impairment charges		Impairment charges recognized
Fiscal 2019:
January 31	49	5	$	37,282	$	5,785
April 30	64	6	$	36,159	17,495
July 31	69	3	$	5,436	1,100
October 31	71	7	$	18,910	6,695
					$	31,075
Fiscal 2018:
January 31	64	5	$	13,318	$	3,736
April 30	65	4	$	21,811	13,325
July 31	55	5	$	43,063	9,065
October 31	43	6	$	24,692	4,025
					$	30,151
Fiscal 2017:
January 31	57	2	$	8,372	$	4,000
April 30	46	6	$	25,092	2,935
July 31	53	4	$	5,965	1,360
October 31	51	1	$	6,982	1,500
					$	9,795

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

The table below provides, as of the dates indicated, the book value and estimated fair value of our debt at October 31, 2019 and 2018 (amounts in thousands):

		2019				2018
	Fair value hierarchy	Book value		Estimated fair value		Book value		Estimated fair value
Loans payable (a)	Level 2	$	1,114,577	$	1,112,040	$	688,115	$	687,974
Senior notes (b)	Level 1	2,669,876		2,823,043		2,869,876		2,779,270
Mortgage company loan facility (c)	Level 2	150,000		150,000		150,000		150,000
		$	3,934,453	$	4,085,083	$	3,707,991	$	3,617,244

(a) The estimated fair value of loans payable was based upon contractual cash flows discounted at interest rates that we believed were available to us for loans with similar terms and remaining maturities as of the applicable valuation date.

(b) The estimated fair value of our senior notes is based upon their market prices as of the applicable valuation date.

(c)

We believe that the carrying value of our mortgage company loan borrowings approximates their fair value.

Operating communities [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis, Valuation Techniques [Table Text Block]

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

Three months ended:	Selling price per unit ($ in thousands)	Sales pace per year (in units)	Discount rate
Fiscal 2019:
January 31	836 - 13,495	2 - 12	12.5% - 15.8%
April 30	372 - 1,915	2 - 19	12.0% - 26.0%
July 31	530 - 1,113	2 - 9	7.8% - 13%
October 31	478 - 857	2 - 5	13.8% - 14.5%
Fiscal 2018:
January 31	381 - 1,029	7 - 10	13.8% - 19.0%
April 30	485 - 522	10 - 16	16.9%
July 31(1)	–	–	–
October 31	470 - 1071	4 - 23	13.5% - 16.3%

(1)

The impairment charges recognized were related to our decisions to sell lots in a bulk sale in certain communities rather than sell and construct homes as previously intended. The sale price per lot used in the fair value determination for these bulk sales ranged from $10,000 to $155,000.

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Document and Entity Information Document (Details) - USD ($)	12 Months Ended
	Oct. 31, 2019	Dec. 19, 2019	Apr. 30, 2019
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Oct. 31, 2019
Document Transition Report	false
Entity File Number	001-09186
Entity Registrant Name	TOLL BROTHERS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-2416878
Entity Address, Address Line One	250 Gibraltar Road
Entity Address, City or Town	Horsham
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19044
City Area Code	215
Local Phone Number	938-8000
Title of 12(g) Security	None
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 5,115,920,000
Entity Common Stock, Shares Outstanding		138,696,000
Senior Notes Due 2024 [Member] | NEW YORK STOCK EXCHANGE, INC. [Member]
Entity Information [Line Items]
Title of 12(b) Security	Guarantee of Toll Brothers Finance Corp. 5.625% Senior Notes due 2024
Trading Symbol	TOL/24
Security Exchange Name	NYSE
Common Stock [Member] | NEW YORK STOCK EXCHANGE, INC. [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common Stock (par value $.01)
Trading Symbol	TOL
Security Exchange Name	NYSE

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Income Taxes (Tables)

12 Months Ended

Oct. 31, 2019

Income Tax Disclosure [Abstract]

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

The following table provides a reconciliation of our effective tax rate from the federal statutory tax rate for the fiscal years ended October 31, 2019, 2018, and 2017 ($ amounts in thousands):

	2019				2018				2017
	$		%*		$		%*		$		%*
Federal tax provision at statutory rate	165,306		21.0		217,914		23.3		285,009		35.0
State tax provision, net of federal benefit	37,898		4.8		47,073		5.0		34,656		4.3
Domestic production activities deduction			—		(18,168	)	(1.9	)	(12,835	)	(1.6	)
Other permanent differences	188		—		(3,726	)	(0.4	)	(1,468	)	(0.2	)
Reversal of accrual for uncertain tax positions	(5,348	)	(0.7	)	(4,741	)	(0.5	)	(3,981	)	(0.5	)
Accrued interest on anticipated tax assessments	453		0.1		737		0.1		984		0.1
Increase in unrecognized tax benefits	2,153		0.3		1,122		0.1				—
Valuation allowance — reversed			—				—		(32,154	)	(3.9	)
Changes in tax law	(523	)	(0.1	)	(38,740	)	(4.1	)			—
Excess stock compensation benefit	(2,143	)	(0.3	)	(4,236	)	(0.5	)			—
Other	(821	)	(0.1	)	(11,470	)	(1.2	)	8,605		1.1
Income tax provision*	197,163		25.0		185,765		19.9		278,816		34.2

* Due to rounding, amounts may not add.

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The following table provides information regarding the provision (benefit) for income taxes for each of the fiscal years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019		2018			2017
Federal	$	161,904	$	157,836		$	278,095
State	35,259		27,929			721
	$	197,163	$	185,765		$	278,816
Current	$	94,399	$	207,695		$	93,106
Deferred	102,764		(21,930		)	185,710
	$	197,163	$	185,765		$	278,816

Schedule of Components of Income Taxes Payable [Table Text Block]

The components of income taxes payable at October 31, 2019 and 2018 are set forth below (amounts in thousands):

	2019		2018
Current	$	7,897	$	28,804
Deferred	95,074		2,155
	$	102,971	$	30,959

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

The following table provides a reconciliation of the change in the unrecognized tax benefits for the years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019			2018			2017
Balance, beginning of year	$	12,222		$	16,993		$	30,272
Increase in benefit as a result of tax positions taken in prior years	2,148			2,140			1,575
Increase in benefit as a result of tax positions taken in current year	1,126			949			431
Decrease in benefit as a result of settlements	(2,670		)	(4,707		)	(9,174		)
Decrease in benefit as a result of lapse of statute of limitations	(4,929		)	(3,153		)	(6,111		)
Balance, end of year	$	7,897		$	12,222		$	16,993

Tax Benefits potential interest and penalties

The following table provides information as to the amounts recognized in our tax provision, before reduction for applicable taxes and reversal of previously accrued interest and penalties, of potential interest and penalties in the fiscal years ended October 31, 2019, 2018, and 2017, and the amounts accrued for potential interest and penalties at October 31, 2019 and 2018 (amounts in thousands):

Expense recognized in the Consolidated Statements of Operations and Comprehensive Income
Fiscal year
2019	$	593
2018	$	1,152
2017	$	1,513

Accrued at:
October 31, 2019	$	1,169
October 31, 2018	$	2,115

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of net deferred tax assets and liabilities at October 31, 2019 and 2018 are set forth below (amounts in thousands):

	2019			2018
Deferred tax assets:
Accrued expenses	$	54,162		$	54,531
Impairment charges	43,583			51,124
Inventory valuation differences	55,313			42,765
Stock-based compensation expense	23,928			27,949
Amounts related to unrecognized tax benefits	311			1,197
State tax, net operating loss carryforwards	67,718			73,288
Other	18			125
Total assets	245,033			250,979
Deferred tax liabilities:
Capitalized interest	44,196			43,982
Deferred income	277,005			181,839
Expenses taken for tax purposes not for book	3,571			5,477
Depreciation	5,024			6,877
Deferred marketing	10,311			14,959
Total liabilities	340,107			253,134
Net deferred tax liabilities	(95,074		)	(2,155		)

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Commitments and Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
Company's purchase commitments
Purchase Obligation	$ 2,360,726	$ 2,532,895
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures	366,252	431,813
Land Purchase Commitment To Unrelated Party [Member]
Company's purchase commitments
Purchase Obligation	2,349,900	2,404,660
Land Purchase Commitment To JV [Member]
Company's purchase commitments
Purchase Obligation	10,826	128,235
Land Parcel Purchase Commitment [Member]
Company's purchase commitments
Deposits against aggregate purchase commitments	168,778	168,421
Additional cash required to acquire land	2,191,948	2,285,306
Total	2,360,726	2,532,895
Amount of Additional Cash Required to Acquire Land Included in Accrued Expenses	14,620	40,103
Land Development Joint Venture, Irvine, California [Member] | Land Parcel Purchase Commitment [Member]
Company's purchase commitments
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures		$ 79,168

XML

Fair Value Disclosures (Level 4 debt fv) (Details 4) - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	$ 3,934,453	$ 3,707,991
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	2,669,876	2,869,876
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Loans Payable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	1,114,577	688,115
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Warehouse Agreement Borrowings [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	150,000	150,000
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	4,085,083	3,617,244
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	2,823,043	2,779,270
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Loans Payable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	1,112,040	687,974
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Warehouse Agreement Borrowings [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	$ 150,000	$ 150,000

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Investments in Unconsolidated Entities (Tables)

12 Months Ended

Oct. 31, 2019

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

Summary of Joint Venture Information [Table Text Block]

The table below provides information as of October 31, 2019, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Number of unconsolidated entities	8		4		20		9		41
Investment in unconsolidated entities	$	110,306	$	60,512	$	174,292	$	21,142	$	366,252
Number of unconsolidated entities with funding commitments by the Company	2		1		2		1		6
Company’s remaining funding commitment to unconsolidated entities	$	28,586	$	1,400	$	539	$	8,271	$	38,796

Summary of Joint Ventures Borrowing information [Table Text Block]

Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at October 31, 2019, regarding the debt financing obtained by category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Total
Number of joint ventures with debt financing	3		2		18		23
Aggregate loan commitments	$	100,859	$	133,453	$	1,393,838	$	1,628,150
Amounts borrowed under commitments	$	88,252	$	133,453	$	1,017,788	$	1,239,493

Condensed balance sheet aggregated by type of business

Condensed Balance Sheets:

	October 31, 2019
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Cash and cash equivalents	$	23,669	$	38,115	$	20,647	$	3,388	$	85,819
Inventory	247,866		313,991				17,369		579,226
Loan receivables, net							56,545		56,545
Rental properties					1,021,848				1,021,848
Rental properties under development					535,197				535,197
Real estate owned							12,267		12,267
Other assets	96,602		78,916		36,879		364		212,761
Total assets	$	368,137	$	431,022	$	1,614,571	$	89,933	$	2,503,663
Debt, net of deferred financing costs	$	88,050	$	132,606	$	1,006,201			$	1,226,857
Other liabilities	49,302		33,959		84,735		7,831		175,827
Members’ equity	230,785		264,457		523,635		81,686		1,100,563
Noncontrolling interest							416		416
Total liabilities and equity	$	368,137	$	431,022	$	1,614,571	$	89,933	$	2,503,663
Company’s net investment in unconsolidated entities (1)	$	110,306	$	60,512	$	174,292	$	21,142	$	366,252

	October 31, 2018
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Cash and cash equivalents	$	47,409	$	22,834	$	23,750	$	8,469	$	102,462
Inventory	403,670		557,157				13,163		973,990
Loan receivables, net							40,065		40,065
Rental properties					808,785				808,785
Rental properties under development					437,586				437,586
Real estate owned							14,838		14,838
Other assets	93,322		49,723		21,917		1,067		166,029
Total assets	$	544,401	$	629,714	$	1,292,038	$	77,602	$	2,543,755
Debt, net of deferred financing costs	$	125,557	$	284,959	$	735,482	$	—	$	1,145,998
Other liabilities	29,096		72,897		51,992		4,585		158,570
Members’ equity	389,748		271,858		504,564		69,804		1,235,974
Noncontrolling interest							3,213		3,213
Total liabilities and equity	$	544,401	$	629,714	$	1,292,038	$	77,602	$	2,543,755
Company’s net investment in unconsolidated entities (1)	$	176,593	$	65,936	$	171,216	$	18,068	$	431,813

(1)

Differences between our net investment in unconsolidated entities and our underlying equity in the net assets of the entities are primarily a result of impairments related to our investments in unconsolidated entities; interest capitalized on our investments; the estimated fair value of the guarantees provided to the joint ventures; unrealized gains on our retained joint venture interests; gains recognized from the sale of our ownership interests; and distributions from entities in excess of the carrying amount of our net investment.

Condensed statements of operations aggregate by type of business

Condensed Statements of Operations and Comprehensive Income:

	For the year ended October 31, 2019
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures			Gibraltar Joint Ventures			Total
Revenues	$	261,677	$	374,587	$	99,401		$	21,377		$	757,042
Cost of revenues	247,070		333,008		68,502			13,234			661,814
Other expenses	4,662		15,389		58,928			1,880			80,859
Total expenses	251,732		348,397		127,430			15,114			742,673
Gain on disposition of loans and REO								4,383			4,383
Income (loss) from operations	9,945		26,190		(28,029		)	10,646			18,752
Other income	3,079		6,144		16,651			12,793			38,667
Income (loss) before income taxes	13,024		32,334		(11,378		)	23,439			57,419
Income tax provision	193		457								650
Net income (loss) including earnings from noncontrolling interests	12,831		31,877		(11,378		)	23,439			56,769
Less: income attributable to noncontrolling interest								(9,593		)	(9,593		)
Net income (loss) attributable to controlling interest	$	12,831	$	31,877	$	(11,378	)	$	13,846		$	47,176
Company’s equity (deficit) in earnings of unconsolidated entities (2)	$	6,160	$	17,004	$	(824	)	$	2,528		$	24,868

	For the year ended October 31, 2018
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures			Gibraltar Joint Ventures			Total
Revenues	$	351,397	$	148,002	$	121,276		$	19,592		$	640,267
Cost of revenues	317,363		112,469		74,946			17,817			522,595
Other expenses	9,125		8,630		61,502			3,201			82,458
Total expenses	326,488		121,099		136,448			21,018			605,053
Gain on disposition of loans and REO								53,192			53,192
Income (loss) from operations	24,909		26,903		(15,172		)	51,766			88,406
Other income	5,939		2,134		222,744			1,937			232,754
Income before income taxes	30,848		29,037		207,572			53,703			321,160
Income tax provision	86		767								853
Net income including earnings from noncontrolling interests	30,762		28,270		207,572			53,703			320,307
Less: income attributable to noncontrolling interest								(28,297		)	(28,297		)
Net income attributable to controlling interest	$	30,762	$	28,270	$	207,572		$	25,406		$	292,010
Company’s equity in earnings of unconsolidated entities (2)	$	3,392	$	14,069	$	62,204		$	5,575		$	85,240

	For the year ended October 31, 2017
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures			Gibraltar Joint Ventures			Total
Revenues	$	288,440	$	475,260	$	115,519		$	10,090		$	889,309
Cost of revenues	191,965		286,446		70,108			14,428			562,947
Other expenses	6,508		13,102		59,503			3,942			83,055
Total expenses	198,473		299,548		129,611			18,370			646,002
Gain on disposition of loans and REO								48,079			48,079
Income (loss) from operations	89,967		175,712		(14,092		)	39,799			291,386
Other income	4,723		7,317		1,556			432			14,028
Income (loss) before income taxes	94,690		183,029		(12,536		)	40,231			305,414
Income tax provision	94		7,473		95						7,662
Net income (loss) including earnings from noncontrolling interests	94,596		175,556		(12,631		)	40,231			297,752
Less: income attributable to noncontrolling interest								(20,439		)	(20,439		)
Net income (loss) attributable to controlling interest	94,596		175,556		(12,631		)	19,792			277,313
Company’s equity in earnings of unconsolidated entities (2)	$	13,007	$	77,339	$	21,458		$	4,262		$	116,066

(2)

Differences between our equity in earnings of unconsolidated entities and the underlying net income (loss) of the entities are primarily a result of a basis difference of an acquired joint venture interest; distributions from entities in excess of the carrying amount of our net investment; recoveries of previously incurred charges; unrealized gains on our retained joint venture interests; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired.

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Inventory (Details) - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018
Total Inventory
Inventory	$ 7,873,048	$ 7,598,219
Land controlled for future communities [Member]
Total Inventory
Inventory	182,929	139,985
Land Owned for Future Communities [Member]
Total Inventory
Inventory	868,202	916,616
Operating communities [Member]
Total Inventory
Inventory	$ 6,821,917	$ 6,541,618

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Inventory (Details Textual) $ in Thousands	12 Months Ended
	Oct. 31, 2019 USD ($)	Oct. 31, 2018 USD ($)	Oct. 31, 2017 USD ($)
Inventory (Textual) [Abstract]
Reclassification of inventory to property, construction and office equipment			$ 8,990
Deferred income relcassed from inventory to accrued liabilities, non-cash			3,520
Non cash transfer of investment in unconsolidated investments to inventory			$ 14,328
Purchase Obligation	$ 2,360,726	$ 2,532,895
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member]
Variable Interest Entity [Line Items]
Number of VIE Land Purchase Contracts	127	110
Land Purchase Commitment To Unrelated Party [Member]
Inventory (Textual) [Abstract]
Purchase Obligation	$ 2,349,900	$ 2,404,660
Land Purchase Commitment To Unrelated Party [Member] | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member]
Inventory (Textual) [Abstract]
Purchase Obligation	2,000,000	1,880,000
Land Parcel Purchase Commitment [Member]
Inventory (Textual) [Abstract]
Deposit Assets	168,778	168,421
Land Parcel Purchase Commitment [Member] | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member]
Inventory (Textual) [Abstract]
Deposit Assets	$ 149,200	$ 120,500

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Investments in Unconsolidated Entities Investments in Unconsolidated Entities (Details Textual 2) $ in Thousands	12 Months Ended
	Oct. 31, 2019 USD ($) joint_ventures	Oct. 31, 2018 USD ($) joint_ventures
Statement of Investments in and Advances to Unconsolidated Entities [Line Items]
Amounts borrowed under commitments	$ 1,239,493
Investments in unconsolidated entities	366,252	$ 431,813
Other Commitment	38,796
Line of Credit Facility, Maximum Borrowing Capacity	1,628,150
Equity Method Investee [Member]
Statement of Investments in and Advances to Unconsolidated Entities [Line Items]
Guarantees, Fair Value Disclosure	$ 5,600
Number Of Unconsolidated Entities That Are Considered Variable Interest Entities | joint_ventures	13	10
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member]
Statement of Investments in and Advances to Unconsolidated Entities [Line Items]
Amounts borrowed under commitments	$ 1,140,000
Maximum repapyment and carry cost guarantee obligation for borrowings by JV	239,600
Line of Credit Facility, Maximum Borrowing Capacity	1,530,000
Guarantees, Repayment and Carry Cost, Maximum	$ 299,100
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member] | Minimum [Member]
Statement of Investments in and Advances to Unconsolidated Entities [Line Items]
Guarantor Obligations, Term	P2M
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member] | Maximum [Member]
Statement of Investments in and Advances to Unconsolidated Entities [Line Items]
Guarantor Obligations, Term	P9Y8M12D
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | Equity Method Investee [Member]
Statement of Investments in and Advances to Unconsolidated Entities [Line Items]
Investments in unconsolidated entities	$ 37,000	$ 33,800
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member]
Statement of Investments in and Advances to Unconsolidated Entities [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	76,000	70,000
Maximum repapyment and carry cost guarantee obligation for borrowings by JV	76,000	70,000
Guarantees, Repayment and Carry Cost, Maximum	76,000	70,000
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Ventures [Member] | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | Equity Method Investee [Member]
Statement of Investments in and Advances to Unconsolidated Entities [Line Items]
Other Commitment	$ 8,300	$ 10,800

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Stock-Based Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock based expense recognized	$ 26,180	$ 28,312	$ 28,466
Share-based Payment Arrangement, Expense, Tax Benefit	6,749	7,902	11,125
Unamortized value of stock compensation	$ 18,700	$ 20,900	$ 24,200

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Income Taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Income Tax Expense, Continuing Operations, by Jurisdiction [Abstract]
Federal Income Tax Expense, Continuing Operations	$ 161,904	$ 157,836	$ 278,095
State and Local Income Tax Expense (Benefit), Continuing Operations	35,259	27,929	721
Current Income Tax Expense	94,399	207,695	93,106
Deferred Income Tax Expense (Benefit)	102,764	(21,930)	185,710
Income tax provision	$ 197,163	$ 185,765	$ 278,816

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Accrued Expenses (Details) - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Accrued expenses
Land, land development and construction	$ 192,658	$ 213,641
Compensation and employee benefits	183,592	159,374
Escrow liability	31,587	32,543
Self-insurance	193,405	168,012
Warranty	201,886	258,831	$ 329,278	$ 370,992
Deferred Income	51,678	42,179
Interest	31,307	40,325
Commitments to unconsolidated entities	9,283	10,553
Other	55,536	48,123
Accrued expenses, Total	$ 950,932	$ 973,581

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Income Taxes (Detail Textuals 1) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Corporate Taxes per the Tax Cuts and Jobs Acts (TCJA) [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	23.30%	35.00%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount	$ 523	$ 38,740
TCJA Impact on Beginning Net DTL [Member]
Corporate Taxes per the Tax Cuts and Jobs Acts (TCJA) [Abstract]
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount		$ (35,500)

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Fair Value Disclosures (Level 4 loan UPB vs FV) (Details 1) - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018
Aggregate unpaid principal and fair value of mortgage loans held for sale
Mortgage Loans on Real Estate, Commercial and Consumer, Net	$ 218,777	$ 170,731
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Assets Held-for-sale [Member] | Residential Mortgage [Member]
Aggregate unpaid principal and fair value of mortgage loans held for sale
Loans Receivable Held-for-sale, Amount	216,280	170,728
Mortgage Loans on Real Estate, Commercial and Consumer, Net	218,777	170,731
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables	$ 2,497	$ 3

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Loans Payable, Senior Notes, and Mortgage Company Loan Facility Senior Notes (Details Textual 3) - USD ($)	1 Months Ended		3 Months Ended		12 Months Ended
	Nov. 30, 2018	Sep. 30, 2012	Oct. 31, 2019	Jan. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017	Nov. 02, 2018	Sep. 15, 2017	Sep. 05, 2012
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 1,628,150,000		$ 1,628,150,000
Senior Note Payable (Textual) [Abstract]
Percentage of Holding In Subsidiary			100.00%		100.00%
Issued Senior Notes			$ 2,659,898,000		$ 2,659,898,000	$ 2,861,375,000
Repayments of Senior Debt					$ 600,000,000		$ 687,500,000
Senior unsecured term loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date	Nov. 01, 2023				Nov. 01, 2024
Maximum borrowing capacity for unsecured long-term debt			1,000,000,000.0		$ 1,000,000,000.0
Maximum Permissible Leverage Ratio					175.00%
Unsecured Long-term Debt, Noncurrent			800,000,000		$ 800,000,000	500,000,000		$ 500,000,000.0
Minimum Net Worth Required for Compliance			2,700,000,000		$ 2,700,000,000
Existing Leverage Ratio					0.50
Tangible Net Worth			5,020,000,000.00		$ 5,020,000,000.00
Ability to repurchase common stock			$ 3,530,000,000		$ 3,530,000,000
Senior Note Payable (Textual) [Abstract]
Debt Instrument, Interest Rate, Effective Percentage			3.11%		3.11%
Ability to pay dividends			$ 2,320,000,000		$ 2,320,000,000
6.75% Senior Notes due 2019 [Member]
Senior Note Payable (Textual) [Abstract]
Interest rate on notes			6.75%		6.75%
Issued Senior Notes			$ 0		$ 0	250,000,000
Repayments of Senior Debt					$ 250,000,000.0
3.80% Senior Notes Due 2029 [Member]
Senior Note Payable (Textual) [Abstract]
Interest rate on notes			3.80%		3.80%
Issued Senior Notes			$ 400,000,000		$ 400,000,000	0
Proceeds from Debt, Net of Issuance Costs			$ 396,400,000
4.0% Senior Notes due 2018 [Member]
Senior Note Payable (Textual) [Abstract]
Interest rate on notes			4.00%	4.00%	4.00%
Issued Senior Notes			$ 0		$ 0	350,000,000
Repayments of Senior Debt				$ 350,000,000.0
4.350% Senior Notes Due 2028 [Member]
Senior Note Payable (Textual) [Abstract]
Interest rate on notes			4.35%	4.35%	4.35%
Issued Senior Notes			$ 400,000,000	$ 400,000,000.0	$ 400,000,000	400,000,000
Proceeds from Debt, Net of Issuance Costs				$ 396,400,000
0.5% Exchangeable Senior Notes Due 2032 [Member]
Senior Note Payable (Textual) [Abstract]
Interest rate on notes									0.50%
Debt Instrument, Redemption Price, Percentage							100.00%
Debt Instrument, Repurchase Date							Sep. 15, 2017
Debt Instrument, Repurchase Amount									$ 287,500,000
Debt Conversion, Convertible, number of shares issued per note exchanged		20.3749
PrincipalAmountDenomination										$ 1,000
Debt Instrument, Convertible, Conversion Price										$ 49.08
Additional common share if convertible debt exchanged			5,900,000
4.875% Senior Notes Due 2027 [Member]
Senior Note Payable (Textual) [Abstract]
Interest rate on notes			4.875%		4.875%
Issued Senior Notes			$ 450,000,000		$ 450,000,000	450,000,000
4.875% Senior Notes Due 2025 [Member]
Senior Note Payable (Textual) [Abstract]
Interest rate on notes			4.875%		4.875%
Issued Senior Notes			$ 350,000,000		$ 350,000,000	350,000,000
Guarantor Subsidiaries [Member]
Senior Note Payable (Textual) [Abstract]
Noncontrolling Interest, Ownership Percentage by Parent			100.00%		100.00%
Issued Senior Notes
Repayments of Senior Debt

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Stock-Based Benefit Plans (Stock Options Intrinsic and Fair Value Table) (Details 5) - Share-based Payment Arrangement, Option [Member] - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value	$ 16,491	$ 18,165	$ 32,951
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Total Fair Value	$ 7,723	$ 10,007	$ 10,897

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Investments in Unconsolidated Entities (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Condensed Statements of Operations:
Revenues	$ 757,042	$ 640,267	$ 889,309
Cost of revenues	661,814	522,595	562,947
Other expenses	80,859	82,458	83,055
Total expenses	742,673	605,053	646,002
Gain on disposition of loans and REO	4,383	53,192	48,079
Income (loss) from operations	18,752	88,406	291,386
Other income (expense)	38,667	232,754	14,028
Net income (loss) before noncontrolling interest	57,419	321,160	305,414
Equity Method Investment, Summarized Financial Information, Income Tax Provision	650	853	7,662
Equity Method Investment, Summarized Financial Information, Net Income Including Earnings from Noncontrolling Interests	56,769	320,307	297,752
Less: Net income attributable to noncontrolling interest	(9,593)	(28,297)	(20,439)
Net income (loss)	47,176	292,010	277,313
Income (loss) from unconsolidated entities	24,868	85,240	116,066
Land Development Joint Ventures [Member]
Condensed Statements of Operations:
Revenues	261,677	351,397	288,440
Cost of revenues	247,070	317,363	191,965
Other expenses	4,662	9,125	6,508
Total expenses	251,732	326,488	198,473
Gain on disposition of loans and REO
Income (loss) from operations	9,945	24,909	89,967
Other income (expense)	3,079	5,939	4,723
Net income (loss) before noncontrolling interest	13,024	30,848	94,690
Equity Method Investment, Summarized Financial Information, Income Tax Provision	193	86	94
Equity Method Investment, Summarized Financial Information, Net Income Including Earnings from Noncontrolling Interests	12,831	30,762	94,596
Less: Net income attributable to noncontrolling interest
Net income (loss)	12,831	30,762	94,596
Income (loss) from unconsolidated entities	6,160	3,392	13,007
Home Building Joint Ventures, Total [Member]
Condensed Statements of Operations:
Revenues	374,587	148,002	475,260
Cost of revenues	333,008	112,469	286,446
Other expenses	15,389	8,630	13,102
Total expenses	348,397	121,099	299,548
Gain on disposition of loans and REO
Income (loss) from operations	26,190	26,903	175,712
Other income (expense)	6,144	2,134	7,317
Net income (loss) before noncontrolling interest	32,334	29,037	183,029
Equity Method Investment, Summarized Financial Information, Income Tax Provision	457	767	7,473
Equity Method Investment, Summarized Financial Information, Net Income Including Earnings from Noncontrolling Interests	31,877	28,270	175,556
Less: Net income attributable to noncontrolling interest
Net income (loss)	31,877	28,270	175,556
Income (loss) from unconsolidated entities	17,004	14,069	77,339
Rental Property Joint Ventures, including Trust I [Member]
Condensed Statements of Operations:
Revenues	99,401	121,276	115,519
Cost of revenues	68,502	74,946	70,108
Other expenses	58,928	61,502	59,503
Total expenses	127,430	136,448	129,611
Gain on disposition of loans and REO
Income (loss) from operations	(28,029)	(15,172)	(14,092)
Other income (expense)	16,651	222,744	1,556
Net income (loss) before noncontrolling interest	(11,378)	207,572	(12,536)
Equity Method Investment, Summarized Financial Information, Income Tax Provision			95
Equity Method Investment, Summarized Financial Information, Net Income Including Earnings from Noncontrolling Interests	(11,378)	207,572	(12,631)
Less: Net income attributable to noncontrolling interest
Net income (loss)	(11,378)	207,572	(12,631)
Income (loss) from unconsolidated entities	(824)	62,204	21,458
Gibraltar Joint Ventures [Member]
Condensed Statements of Operations:
Revenues	21,377	19,592	10,090
Cost of revenues	13,234	17,817	14,428
Other expenses	1,880	3,201	3,942
Total expenses	15,114	21,018	18,370
Gain on disposition of loans and REO	4,383	53,192	48,079
Income (loss) from operations	10,646	51,766	39,799
Other income (expense)	12,793	1,937	432
Net income (loss) before noncontrolling interest	23,439	53,703	40,231
Equity Method Investment, Summarized Financial Information, Income Tax Provision
Equity Method Investment, Summarized Financial Information, Net Income Including Earnings from Noncontrolling Interests	23,439	53,703	40,231
Less: Net income attributable to noncontrolling interest	(9,593)	(28,297)	(20,439)
Net income (loss)	13,846	25,406	19,792
Income (loss) from unconsolidated entities	$ 2,528	$ 5,575	$ 4,262

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Loans Payable, Senior Notes, and Mortgage Company Loan Facility Term Loan Facility (Detail Textuals 1) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Nov. 30, 2018	Oct. 31, 2019	Nov. 02, 2018	Oct. 31, 2018
Senior unsecured term loan [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity for unsecured long-term debt		$ 1,000,000
Maximum Permissible Leverage Ratio		175.00%
Unsecured Long-term Debt, Noncurrent		$ 800,000	$ 500,000	$ 500,000
Debt Instrument, Maturity Date	Nov. 01, 2023	Nov. 01, 2024
Debt Instrument, Term		5 years
Debt Instrument, Interest Rate, Effective Percentage		3.11%
Guarantor Subsidiaries [Member]
Debt Instrument [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent		100.00%

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Stock-Based Benefit Plans (Nonperformance-based RSUs) (Details 9) - USD ($)	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017	Dec. 20, 2016	Dec. 18, 2015	Dec. 16, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based expense recognized	$ 26,180,000	$ 28,312,000	$ 28,466,000
Summary of aggregate number and unamortized value of outstanding non-performance based RSUs
Unamortized value of RSUs	$ 18,700,000	$ 20,900,000	$ 24,200,000
Restricted Stock Units (RSUs) [Member] | Vesting Based On Service [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	449,380	296,790	377,564
Share Price				$ 33.04	$ 47.84	$ 31.61
Fair value of restricted stock units issued	$ 14,848,000	$ 14,198,000	$ 11,935,000
Stock based expense recognized	$ 13,627,000	$ 11,193,000	$ 7,572,000
Summary of aggregate number and unamortized value of outstanding non-performance based RSUs
Aggregate outstanding RSUs	1,137,936	850,853	673,224
Unamortized value of RSUs	$ 8,694,000	$ 8,818,000	$ 6,783,000
Shares withheld for income taxes related to share issued for RSU	29,681	23,289	20,400
Value of shares withheld for income taxes on restricted shares issued	$ 1,042	$ 1,145	$ 664,300
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	82,795	58,552	52,757

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Summary Consolidated Quarterly Financial Data (Unaudited) Summary Consolidated Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Oct. 31, 2019

Summary Consolidated Quarterly Financial Data (Unaudited) [Abstract]

Schedule of Quarterly Financial Information [Table Text Block]

The table below provides summary income statement data for each quarter of fiscal 2019 and 2018 (amounts in thousands, except per share data):

	Three Months Ended
	October 31		July 31		April 30		January 31
Fiscal 2019:
Revenue:
Home sales	$	2,292,044	$	1,756,970	$	1,712,057	$	1,319,308
Land sales	$	86,956	$	8,721	$	4,037	$	43,873
Gross profit:
Home sales	$	431,477	$	355,215	$	337,710	$	277,063
Land sales	$	658	$	2,489	$	1,116	$	9,620
Income before income taxes	$	272,649	$	186,916	$	176,159	$	151,446
Net income	$	202,315	$	146,318	$	129,324	$	112,050
Earnings per share (a)
Basic	$	1.43	$	1.01	$	0.88	$	0.76
Diluted	$	1.41	$	1.00	$	0.87	$	0.76
Weighted-average number of shares
Basic	141,909		144,750		146,622		146,751
Diluted	143,567		146,275		148,129		148,032
Fiscal 2018:
Revenue	$	2,455,238	$	1,913,353	$	1,599,199	$	1,175,468
Gross profit	$	524,487	$	403,734	$	301,042	$	240,988
Income before income taxes	$	396,473	$	253,097	$	152,748	$	131,598
Net income	$	310,976	$	193,258	$	111,810	$	132,107
Earnings per share (a)
Basic	$	2.10	$	1.28	$	0.73	$	0.85
Diluted	$	2.08	$	1.26	$	0.72	$	0.83
Weighted-average number of shares
Basic	148,066		151,257		152,731		155,882
Diluted	149,603		153,173		155,129		158,897

(a) Due to rounding, the sum of the quarterly earnings per share amounts may not equal the reported earnings per share for the year.

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Other Income - Net (Tables)

12 Months Ended

Oct. 31, 2019

Other Income and Expenses [Abstract]

Other Income - net [Table Text Block]

The table below provides the components of “Other income – net” for the years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019			2018		2017
Interest income	$	19,017		$	8,570	$	5,988
Income from ancillary businesses	53,568			25,692		18,934
Management fee income from home building unconsolidated entities, net	9,948			11,740		12,902
Retained customer deposits	—			8,937		5,801
Income from land sales	—			6,331		8,621
Other	(1,031		)	1,190		(1,184		)
Total other income – net	$	81,502		$	62,460	$	51,062

Revenues and Expenses of Non Core Ancillary Businesses [Table Text Block]

The table below provides revenues and expenses for these ancillary businesses for the years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019		2018		2017
Revenues	$	150,114	$	158,051	$	134,116
Expenses	$	132,823	$	132,359	$	115,182
Other income	$	36,277

Schedule of revenues and expenses from land sales [Table Text Block]

The table below provides revenues and expenses recognized from land sales for the years ended October 31, 2018, and 2017 (amounts in thousands):

	2018		2017
Revenue	$	134,327	$	284,928
Expense	127,996		281,030
Deferred gains recognized			4,723
	$	6,331	$	8,621

Land sale revenues for the year ended October 31, 2018 included $80.3 million related to sale transactions with four Rental Property Joint Ventures in which we have interests ranging from 25% to 50%. On one of these transactions, we recognized a gain of $1.0 million in fiscal 2018. In addition, due to our continued involvement in the joint venture primarily through guarantees provided on the joint venture’s debt, we deferred $3.8 million of the gain realized on this sale. We will recognize the deferred gain into income as the guarantees provided expire.

Land sale revenues for the year ended October 31, 2017 included $257.8 million related to sale transactions with two Home Building Joint Ventures and a Rental Property Joint Venture in which we have interests ranging from 20% to 25%. No gain or loss was realized on the sales related to the Home Building Joint Ventures.

The deferred gains recognized in the fiscal 2017 period relate to the sale of a property in fiscal 2015 to a Home Building Joint Venture in which we had a 25% interest. Due to our continued involvement in this unconsolidated entity through our ownership interest and guarantees provided on the entity’s debt, we deferred the $9.3 million gain realized on the sale. We recognized the gain as units were sold to the ultimate home buyers, which is included in deferred gains recognized above. In the fourth quarter of fiscal 2017, we purchased the remaining inventory from this Home Building Joint Venture. The remaining unamortized deferred gain was used to reduce the basis of the inventory acquired.

See Note 4, “Investments in Unconsolidated Entities,” for more information on these transactions.

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Other Income - Net

12 Months Ended

Oct. 31, 2019

Other Income and Expenses [Abstract]

Other Income - net [Text Block]

Other Income – Net

The table below provides the components of “Other income – net” for the years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019			2018		2017
Interest income	$	19,017		$	8,570	$	5,988
Income from ancillary businesses	53,568			25,692		18,934
Management fee income from home building unconsolidated entities, net	9,948			11,740		12,902
Retained customer deposits	—			8,937		5,801
Income from land sales	—			6,331		8,621
Other	(1,031		)	1,190		(1,184		)
Total other income – net	$	81,502		$	62,460	$	51,062

As a result of our adoption of ASC 606 as of November 1, 2018, revenues and cost of revenues from land sales are presented as separate components on our Consolidated Statement of Operations and Comprehensive Income. In addition, retained customer deposits are presented in home sales revenues on our Consolidated Statement of Operations and Comprehensive Income. Because we elected to apply the modified retrospective method of adoption, prior periods have not been restated to reflect these

changes in presentation. See Note 1, “Significant Accounting Policies – Recent Accounting Pronouncements” for additional information regarding the impact of the adoption of ASC 606.

Management fee income from home building unconsolidated entities presented above primarily represents fees earned by our City Living and Traditional Home Building operations. In addition, in fiscal 2019, 2018 and 2017, our apartment living operations earned fees from unconsolidated entities of $11.9 million, $7.5 million, and $6.2 million, respectively. Fees earned by our apartment living operations are included in income from ancillary businesses above.

Income from ancillary businesses is generated by our mortgage, title, landscaping, security monitoring, Gibraltar, apartment living, and golf course and country club operations. The table below provides revenues and expenses for these ancillary businesses for the years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019		2018		2017
Revenues	$	150,114	$	158,051	$	134,116
Expenses	$	132,823	$	132,359	$	115,182
Other income	$	36,277

In fiscal 2019, we sold seven of our golf club properties to third parties for $64.3 million and we recognized a gain of $35.1 million during the year ended October 31, 2019 as a result of these sales.

In fiscal 2018, we recognized a $10.7 million gain from a bulk sale of security monitoring accounts by our home control solutions business, which is included in income from ancillary businesses above. In addition, in fiscal 2018, we recognized a $3.5 million write-down of a commercial property operated by Toll Brothers Apartment Living, which is included in income from ancillary businesses above.

The table below provides revenues and expenses recognized from land sales for the years ended October 31, 2018, and 2017 (amounts in thousands):

	2018		2017
Revenue	$	134,327	$	284,928
Expense	127,996		281,030
Deferred gains recognized			4,723
	$	6,331	$	8,621

Land sale revenues for the year ended October 31, 2018 included $80.3 million related to sale transactions with four Rental Property Joint Ventures in which we have interests ranging from 25% to 50%. On one of these transactions, we recognized a gain of $1.0 million in fiscal 2018. In addition, due to our continued involvement in the joint venture primarily through guarantees provided on the joint venture’s debt, we deferred $3.8 million of the gain realized on this sale. We will recognize the deferred gain into income as the guarantees provided expire.

Land sale revenues for the year ended October 31, 2017 included $257.8 million related to sale transactions with two Home Building Joint Ventures and a Rental Property Joint Venture in which we have interests ranging from 20% to 25%. No gain or loss was realized on the sales related to the Home Building Joint Ventures.

The deferred gains recognized in the fiscal 2017 period relate to the sale of a property in fiscal 2015 to a Home Building Joint Venture in which we had a 25% interest. Due to our continued involvement in this unconsolidated entity through our ownership interest and guarantees provided on the entity’s debt, we deferred the $9.3 million gain realized on the sale. We recognized the gain as units were sold to the ultimate home buyers, which is included in deferred gains recognized above. In the fourth quarter of fiscal 2017, we purchased the remaining inventory from this Home Building Joint Venture. The remaining unamortized deferred gain was used to reduce the basis of the inventory acquired.

See Note 4, “Investments in Unconsolidated Entities,” for more information on these transactions.

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Commitments and Contingencies Commitments and Contingencies (Details Textual 1) $ in Millions	Oct. 31, 2019 USD ($) luxury_homes
Backlog Information [Abstract]
Number of homes to be delivered | luxury_homes	6,266
Aggregate sales value of outstanding homes to be delivered	$ 5,260.0
May 2016 Revolving Credit Facility [Member]
Loss Contingencies [Line Items]
Letters of Credit Outstanding, Amount	177.9
Surety Bond Construction Improvements [Member]
Loss Contingencies [Line Items]
Outstanding Surety Bonds Amount	777.2
Amount of work remains on improvements in the Company's various communities	402.6
Surety Bond Other Obligations [Member]
Loss Contingencies [Line Items]
Additional outstanding surety bonds	$ 179.7

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Other Income - Net (Details Textuals 1) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2015
Loss Contingencies [Line Items]
Land sales earnings, net	$ 0	$ 6,331	$ 8,621
Rental Property Joint Venture Metro Washington, D.C. Two [Member]
Loss Contingencies [Line Items]
Retail Land Sales, Installment Method, Gross Profit, Deferred		3,800
Land sales earnings, net		1,000
Home Building Joint Venture Metro New York Four, Home Building Joint Venture Metro New York Five, and Rental Property Joint Venture Princeton Junction [Member]
Loss Contingencies [Line Items]
Land sales earnings, net		$ 80,300	$ 257,800
Home Building Joint Venture Metro New York Three [Member]
Loss Contingencies [Line Items]
Retail Land Sales, Installment Method, Gross Profit, Deferred				$ 9,300
Equity Method Investment, Ownership Percentage				25.00%
Minimum [Member] | Home Building Joint Venture Metro New York Four [Member]
Loss Contingencies [Line Items]
Equity Method Investment, Ownership Percentage			20.00%
Minimum [Member] | Rental Property Joint Venture Atlanta, GA [Member]
Loss Contingencies [Line Items]
Equity Method Investment, Ownership Percentage		25.00%
Maximum [Member] | Home Building Joint Venture Metro New York Four [Member]
Loss Contingencies [Line Items]
Equity Method Investment, Ownership Percentage			25.00%
Maximum [Member] | Rental Property Joint Ventures Belmont MA and 2 Washington D.C. [Member]
Loss Contingencies [Line Items]
Equity Method Investment, Ownership Percentage		50.00%

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Summary Consolidated Quarterly Financial Data (Unaudited)

12 Months Ended

Oct. 31, 2019

Summary Consolidated Quarterly Financial Data (Unaudited) [Abstract]

Quarterly Financial Information [Text Block]

Summary Consolidated Quarterly Financial Data (Unaudited)

The table below provides summary income statement data for each quarter of fiscal 2019 and 2018 (amounts in thousands, except per share data):

	Three Months Ended
	October 31		July 31		April 30		January 31
Fiscal 2019:
Revenue:
Home sales	$	2,292,044	$	1,756,970	$	1,712,057	$	1,319,308
Land sales	$	86,956	$	8,721	$	4,037	$	43,873
Gross profit:
Home sales	$	431,477	$	355,215	$	337,710	$	277,063
Land sales	$	658	$	2,489	$	1,116	$	9,620
Income before income taxes	$	272,649	$	186,916	$	176,159	$	151,446
Net income	$	202,315	$	146,318	$	129,324	$	112,050
Earnings per share (a)
Basic	$	1.43	$	1.01	$	0.88	$	0.76
Diluted	$	1.41	$	1.00	$	0.87	$	0.76
Weighted-average number of shares
Basic	141,909		144,750		146,622		146,751
Diluted	143,567		146,275		148,129		148,032
Fiscal 2018:
Revenue	$	2,455,238	$	1,913,353	$	1,599,199	$	1,175,468
Gross profit	$	524,487	$	403,734	$	301,042	$	240,988
Income before income taxes	$	396,473	$	253,097	$	152,748	$	131,598
Net income	$	310,976	$	193,258	$	111,810	$	132,107
Earnings per share (a)
Basic	$	2.10	$	1.28	$	0.73	$	0.85
Diluted	$	2.08	$	1.26	$	0.72	$	0.83
Weighted-average number of shares
Basic	148,066		151,257		152,731		155,882
Diluted	149,603		153,173		155,129		158,897

(a)

Due to rounding, the sum of the quarterly earnings per share amounts may not equal the reported earnings per share for the year.

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Information on Segments (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items]
Investments in unconsolidated entities	$ 366,252	$ 431,813
Income (loss) from unconsolidated entities	24,868	85,240	$ 116,066
Mid-Atlantic [Member]
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items]
Investments in unconsolidated entities	8,525	7,823
Income (loss) from unconsolidated entities		(4,000)	(2,000)
South [Member]
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items]
Investments in unconsolidated entities	91,956	84,610
Income (loss) from unconsolidated entities	19,098	12,263	9,185
West [Member]
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items]
Investments in unconsolidated entities
Income (loss) from unconsolidated entities		(63)	2,529
California [Member]
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items]
Investments in unconsolidated entities	9,825	84,160
Income (loss) from unconsolidated entities	(37)	2,404	7,509
Traditional Homebuilding [Member]
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items]
Investments in unconsolidated entities	110,306	176,593
Income (loss) from unconsolidated entities	19,061	10,604	17,223
City Living [Member]
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items]
Investments in unconsolidated entities	60,512	65,936
Income (loss) from unconsolidated entities	4,103	6,857	73,123
Corporate and other [Member]
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items]
Investments in unconsolidated entities	195,434	189,284
Income (loss) from unconsolidated entities	$ 1,704	$ 67,779	$ 25,720

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Commitments and Contingencies (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Operating Leases, Rent Expense, Net [Abstract]
Operating Leases, Rent Expense	$ 20,180	$ 15,783	$ 14,505

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Consolidated Balance Sheets (Parenthetical) - shares shares in Thousands	Oct. 31, 2019	Oct. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, shares issued	0	0
Common stock, shares issued	152,937	177,937
Treasury stock, at cost	11,999	31,774

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Significant Accounting Policies

12 Months Ended

Oct. 31, 2019

Significant Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Significant Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Toll Brothers, Inc. (the “Company,” “we,” “us,” or “our”), a Delaware corporation, and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Investments in 50% or less owned partnerships and affiliates are accounted for using the equity method unless it is determined that we have effective control of the entity, in which case we would consolidate the entity.

References herein to fiscal year refer to our fiscal years ended or ending October 31.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents

Liquid investments or investments with original maturities of three months or less are classified as cash equivalents. Our cash balances exceed federally insurable limits. We monitor the cash balances in our operating accounts and adjust the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, we have experienced no loss or lack of access to cash in its operating accounts.

Inventory

Inventory is stated at cost unless an impairment exists, in which case it is written down to fair value in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment” (“ASC 360”). In addition to direct land acquisition costs, land development costs, and home construction costs, costs also include interest, real estate taxes, and direct overhead related to development and construction, which are capitalized to inventory during the period beginning with the commencement of development and ending with the completion of construction. For those communities that have been temporarily closed, no additional capitalized interest is allocated to a community’s inventory until it reopens. While the community remains closed, carrying costs such as real estate taxes are expensed as incurred.

We capitalize certain interest costs to qualified inventory during the development and construction period of our communities in accordance with ASC 835-20, “Capitalization of Interest” (“ASC 835-20”). Capitalized interest is charged to home sales cost of sales revenues when the related inventory is delivered. Interest incurred on home building indebtedness in excess of qualified inventory, as defined in ASC 835-20, is charged to the Consolidated Statements of Operations and Comprehensive Income in the period incurred.

Once a parcel of land has been approved for development and we open one of our typical communities, it may take 4 or more years to fully develop, sell, and deliver all the homes in such community. Longer or shorter time periods are possible depending on the number of home sites in a community and the sales and delivery pace of the homes in a community. Our master planned communities, consisting of several smaller communities, may take up to 10 years or more to complete. Because our inventory is considered a long-lived asset under GAAP, we are required, under ASC 360, to regularly review the carrying value of each community and write down the value of those communities for which we believe the values are not recoverable.

Operating Communities: When the profitability of an operating community deteriorates, the sales pace declines significantly, or some other factor indicates a possible impairment in the recoverability of the asset, the asset is reviewed for impairment by comparing the estimated future undiscounted cash flow for the community to its carrying value. If the estimated future undiscounted cash flow is less than the community’s carrying value, the carrying value is written down to its estimated fair value. Estimated fair value is primarily determined by discounting the estimated future cash flow of each community. The impairment is charged to home sales cost of revenues in the period in which the impairment is determined. In estimating the future undiscounted cash flow of a community, we use various estimates such as (i) the expected sales pace in a community, based upon general economic conditions that will have a short-term or long-term impact on the market in which the community is located and on competition within the market, including the number of home sites available and pricing and incentives being offered in other communities owned by us or by other builders; (ii) the expected sales prices and sales incentives to be offered in a community; (iii) costs expended to date and expected to be incurred in the future, including, but not limited to, land and land development, home construction, interest, and overhead costs; (iv) alternative product offerings that may be offered in a

community that will have an impact on sales pace, sales price, building cost, or the number of homes that can be built on a particular site; and (v) alternative uses for the property such as the possibility of a sale of the entire community to another builder or the sale of individual home sites.

Future Communities: We evaluate all land held for future communities or future sections of operating communities, whether owned or under contract, to determine whether or not we expect to proceed with the development of the land as originally contemplated. This evaluation encompasses the same types of estimates used for operating communities described above, as well as an evaluation of the regulatory environment applicable to the land and the estimated probability of obtaining the necessary approvals, the estimated time and cost it will take to obtain the approvals, and the possible concessions that may be required to be given in order to obtain them. Concessions may include cash payments to fund improvements to public places such as parks and streets, dedication of a portion of the property for use by the public or as open space, or a reduction in the density or size of the homes to be built. Based upon this review, we decide (i) as to land under contract to be purchased, whether the contract will likely be terminated or renegotiated, and (ii) as to land owned, whether the land will likely be developed as contemplated or in an alternative manner, or should be sold. We then further determine whether costs that have been capitalized to the community are recoverable or should be written off. The write-off is charged to home sales cost of revenues in the period in which the need for the write-off is determined.

The estimates used in the determination of the estimated cash flows and fair value of both current and future communities are based on factors known to us at the time such estimates are made and our expectations of future operations and economic conditions. Should the estimates or expectations used in determining estimated fair value deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to current and future communities and such amounts could be material.

Variable Interest Entities

We are required to consolidate variable interest entities (“VIEs”) in which we have a controlling financial interest in accordance with ASC 810, “Consolidation” (“ASC 810”). A controlling financial interest will have both of the following characteristics: (i) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

Our variable interest in VIEs may be in the form of equity ownership, contracts to purchase assets, management services and development agreements between us and a VIE, loans provided by us to a VIE or other member, and/or guarantees provided by members to banks and other parties.

We have a significant number of land purchase contracts and investments in unconsolidated entities which we evaluate in accordance with ASC 810. We analyze our land purchase contracts and the unconsolidated entities in which we have an investment to determine whether the land sellers and unconsolidated entities are VIEs and, if so, whether we are the primary beneficiary. We examine specific criteria and use our judgment when determining if we are the primary beneficiary of a VIE. Factors considered in determining whether we are the primary beneficiary include risk and reward sharing, experience and financial condition of other member(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, level of economic disproportionality between us and the other member(s), and contracts to purchase assets from VIEs. The determination whether an entity is a VIE and, if so, whether we are the primary beneficiary may require significant judgment.

Property, Construction, and Office Equipment

Property, construction, and office equipment are recorded at cost and are stated net of accumulated depreciation of $252.5 million and $145.0 million at October 31, 2019 and 2018, respectively. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. In fiscal 2019, 2018, and 2017, we recognized $67.6 million, $21.0 million, and $18.7 million of depreciation expense, respectively.

Mortgage Loans Held for Sale

Residential mortgage loans held for sale are measured at fair value in accordance with the provisions of ASC 825, “Financial Instruments” (“ASC 825”). We believe the use of ASC 825 improves consistency of mortgage loan valuations between the date the borrower locks in the interest rate on the pending mortgage loan and the date of the mortgage loan sale. At the end of the reporting period, we determine the fair value of our mortgage loans held for sale and the forward loan commitments we have entered into as a hedge against the interest rate risk of our mortgage loans 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 such pricing is applied to the mortgage loan portfolio. We recognize the difference between the fair value and the unpaid principal balance of mortgage loans held for sale as a gain or loss. In addition, we recognize the fair value of our forward loan

commitments as a gain or loss. Interest income on mortgage loans held for sale is calculated based upon the stated interest rate of each loan. In addition, the recognition of net origination costs and fees associated with residential mortgage loans originated are expensed as incurred. These gains and losses, interest income, and origination costs and fees are recognized in “Other income - net” in the Consolidated Statements of Operations and Comprehensive Income.

Investments in Unconsolidated Entities

In accordance with ASC 323, “Investments—Equity Method and Joint Ventures,” 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 the investment 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 from the unconsolidated entity. In addition, for rental properties, we review rental trends, expected future expenses, and expected cash flows to determine estimated fair values of the properties.

Our unconsolidated entities that develop land or develop for-sale homes and condominiums evaluate their inventory in a similar manner as we do. See “Inventory” above for more detailed disclosure on our evaluation of inventory. For our unconsolidated entities that own, develop, and manage for-rent residential apartments, we review rental trends, expected future expenses, and expected future cash flows to determine estimated fair values of the properties. If a valuation adjustment is recorded by an unconsolidated entity related to its assets, our proportionate share is reflected in income from unconsolidated entities with a corresponding decrease to our investment in unconsolidated entities.

We are a party to several joint ventures with unrelated parties to develop and sell land that is owned by the joint ventures. We recognize our proportionate share of the earnings from the sale of home sites to other builders, including our joint venture partners. We do not recognize earnings from the home sites we purchase from these ventures at the time of purchase; instead, our cost basis in those home sites is reduced by our share of the earnings realized by the joint venture from sales of those home sites to us.

We are also a party to several other joint ventures. We recognize our proportionate share of the earnings and losses of our unconsolidated entities.

Fair Value Disclosures

We use 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 that 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.

Treasury Stock

Treasury stock is recorded at cost. Issuance of treasury stock is accounted for on a first-in, first-out basis. Differences between the cost of treasury stock and the re-issuance proceeds are charged to additional paid-in capital. When treasury stock is canceled, any excess purchase price over par value is charged directly to retained earnings.

Revenue and Cost Recognition

As discussed under “Recent Accounting Pronouncements” below, on November 1, 2018, we adopted Accounting Standards Codification (“ASC”) Topic 606 “Revenue from Contracts with Customers” (“ASC 606”). As a result of this adoption, we updated our revenue recognition policies effective November 1, 2018, as follows:

Home sales revenues: Revenues and cost of revenues from home sales are recognized at the time each home is delivered and title and possession are transferred to the buyer. For the majority of our home closings, our performance obligation to deliver a home is satisfied in less than one year from the date a binding sale agreement is signed. In certain states where we build, we are not able to complete certain outdoor features prior to the closing of the home. Effective November 1, 2018, to the extent these separate performance obligations are not complete upon the home closing, we defer a portion of the home sales revenues related to these obligations and subsequently recognize the revenue upon completion of such obligations. As of October 31, 2019, the home sales revenues and related costs we deferred related to these obligations were immaterial. Our contract liabilities, consisting of deposits received from customers for sold but undelivered homes, totaled $385.6 million and $410.9 million at October 31, 2019 and October 31, 2018, respectively. Of the outstanding customer deposits held as of October 31, 2018, we recognized $367.8 million in home sales revenues during the fiscal year ended October 31, 2019.

For our standard attached and detached homes, land, land development, and related costs, both incurred and estimated to be incurred in the future, are amortized to the cost of homes closed based upon the total number of homes to be constructed in each community. Any changes resulting from a change in the estimated number of homes to be constructed or in the estimated land, land development, and related costs subsequent to the commencement of delivery of homes are allocated to the remaining undelivered homes in the community. Home construction and related costs are charged to the cost of homes closed under the specific identification method. The estimated land, common area development, and related costs of master planned communities, including the cost of golf courses, net of their estimated residual value, are allocated to individual communities within a master planned community on a relative sales value basis. Any changes resulting from a change in the estimated number of homes to be constructed or in the estimated costs are allocated to the remaining home sites in each of the communities of the master planned community.

For high-rise/mid-rise projects, land, land development, construction, and related costs, both incurred and estimated to be incurred in the future, are generally amortized to the cost of units closed based upon an estimated relative sales value of the units closed to the total estimated sales value. Any changes resulting from a change in the estimated total costs or revenues of the project are allocated to the remaining units to be delivered.

Land sales revenues: Our revenues from land sales generally consist of: (1) lot sales to third-party builders within our master planned communities; (2) land sales to joint ventures in which we retain an interest; and (3) bulk land sales to third parties of land we have decided no longer meets our development criteria. In general, our performance obligation for each of these land sales is fulfilled upon the delivery of the land, which generally coincides with the receipt of cash consideration from the counterparty. Effective November 1, 2018, in land sale transactions that contain repurchase options, revenues and related costs are not recognized until the repurchase option expires. In addition, when we sell land to a joint venture in which we retain an interest, we do not recognize revenue or gains on the sale to the extent of our retained interest in such joint venture.

Forfeited Customer Deposits: Effective November 1, 2018, forfeited customer deposits are recognized in “Home sales revenues” in our Consolidated Statements of Operations and Comprehensive Income in the period in which we determine that the customer will not complete the purchase of the home and we have the right to retain the deposit.

Sales Incentives: In order to promote sales of our homes, we may offer our home buyers sales incentives. These incentives will vary by type of incentive and by amount on a community-by-community and home-by-home basis. Incentives are reflected as a reduction in home sales revenues. Incentives are recognized at the time the home is delivered to the home buyer and we receive the sales proceeds.

Advertising Costs

We expense advertising costs as incurred. Advertising costs were $38.5 million, $28.5 million, and $26.1 million for the years ended October 31, 2019, 2018, and 2017, respectively.

Warranty and Self-Insurance

Warranty: We provide all of our home buyers with a limited warranty as to workmanship and mechanical equipment. We also provide many of our home buyers with a limited 10-year warranty as to structural integrity. We accrue 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. Adjustments to our warranty liabilities related to homes delivered in prior periods are recorded in the period in which a change in our estimate occurs. Over the past several years, we have had a significant number of warranty claims related primarily to homes built in Pennsylvania and Delaware. See Note 7 – “Accrued Expenses” for additional information regarding these warranty charges.

Self-Insurance: We maintain, and require the majority of our subcontractors to maintain, general liability insurance (including construction defect and bodily injury coverage) and workers’ compensation insurance. These insurance policies protect us against a portion of our risk of loss from claims related to our home building activities, subject to certain self-insured

retentions, deductibles and other coverage limits (“self-insured liability”). We also provide general liability insurance for our subcontractors in Arizona, California, Colorado, Nevada, Washington, and certain areas of Texas, where eligible subcontractors are enrolled as insureds under our general liability insurance policies in each community in which they perform work. For those enrolled subcontractors, we absorb their general liability associated with the work performed on our homes within the applicable community as part of our overall general liability insurance and our self-insured liability.

We record expenses and liabilities based on the estimated costs required to cover our self-insured liability and the estimated costs of potential claims and claim adjustment expenses that are above our coverage limits or that are not covered by our insurance policies. These estimated costs are based on an analysis of our historical claims and industry data, and include an estimate of claims incurred but not yet reported (“IBNR”).

We engage a third-party actuary that uses our historical claim and expense data, input from our internal legal and risk management groups, as well as industry data, to estimate our liabilities related to unpaid claims, IBNR associated with the risks that we are assuming for our self-insured liability, and other required costs to administer current and expected claims. These estimates are subject to uncertainty due to a variety of factors, the most significant being the long period of time between the delivery of a home to a home buyer and when a structural warranty or construction defect claim may be made, and the ultimate resolution of the claim. Though state regulations vary, construction defect claims may be reported and resolved over a prolonged period of time, which can extend for 10 years or longer. As a result, the majority of the estimated liability relates to IBNR. Adjustments to our liabilities related to homes delivered in prior years are recorded in the period in which a change in our estimate occurs.

The projection of losses related to these liabilities requires actuarial assumptions that are subject to variability due to uncertainties regarding construction defect claims relative to our markets and the types of product we build, insurance industry practices, and legal or regulatory actions and/or interpretations, among other factors. Key assumptions used in these estimates include claim frequencies, severities, and settlement patterns, which can occur over an extended period of time. In addition, changes in the frequency and severity of reported claims and the estimates to settle claims can impact the trends and assumptions used in the actuarial analysis, which could be material to our consolidated financial statements. Due to the degree of judgment required, and the potential for variability in these underlying assumptions, our actual future costs could differ from those estimated, and the difference could be material to our consolidated financial statements.

Stock-Based Compensation

We account for our stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation” (“ASC 718”). We use a lattice model for the valuation of our stock option grants. The option pricing models used are designed to estimate the value of options that, unlike employee stock options and restricted stock units, can be traded at any time and are transferable. In addition to restrictions on trading, employee stock options and restricted stock units may include other restrictions such as vesting periods. Further, such models require the input of highly subjective assumptions, including the expected volatility of the stock price. Stock-based compensation expense is generally included in “Selling, general and administrative” expense in our Consolidated Statements of Operations and Comprehensive Income.

Legal Expenses

Transactional legal expenses for land acquisition and entitlement, and financing are capitalized and expensed over their appropriate life. We expense legal fees related to litigation, warranty and insurance claims when incurred.

Income Taxes

We account for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). Deferred tax assets and liabilities are recorded based on temporary differences between the amounts reported for financial reporting purposes and the amounts reported for income tax purposes. In accordance with the provisions of ASC 740, we assess the realizability of our deferred tax assets. A valuation allowance must be established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. See “Income Taxes – Valuation Allowance” below.

Federal and state income taxes are calculated on reported pre-tax earnings based on current tax law and also include, in the applicable period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provisions differ from the amounts currently receivable or payable because certain items of income and expense are recognized for financial reporting purposes in different periods than for income tax purposes. Significant judgment is required in determining income tax provisions and evaluating tax positions. We establish reserves for income taxes when, despite the belief that our tax positions are fully supportable, we believe that our positions may be challenged and disallowed by various tax authorities. The consolidated tax provisions and related accruals include the impact of such reasonably estimable disallowances as deemed appropriate. To the extent that the probable tax outcome of these matters changes, such changes in estimates will impact the income tax provision in the period in which such determination is made.

ASC 740 clarifies the accounting for uncertainty in income taxes recognized and prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 requires a company to recognize the financial statement effect of a tax position when it is “more-likely-than-not” (defined as a substantiated likelihood of more than 50%), based on the technical merits of the position, that the position will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to be recognized in the financial statements based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Our inability to determine that a tax position meets the more-likely-than-not recognition threshold does not mean that the Internal Revenue Service (“IRS”) or any other taxing authority will disagree with the position that we have taken.

If a tax position does not meet the more-likely-than-not recognition threshold, despite our belief that our filing position is supportable, the benefit of that tax position is not recognized in the Consolidated Statements of Operations and Comprehensive Income and we are required to accrue potential interest and penalties until the uncertainty is resolved. Potential interest and penalties are recognized as a component of the provision for income taxes. Differences between amounts taken in a tax return and amounts recognized in the financial statements are considered unrecognized tax benefits. We believe that we have a reasonable basis for each of our filing positions and intend to defend those positions if challenged by the IRS or other taxing jurisdiction. If the IRS or other taxing authorities do not disagree with our position, and after the statute of limitations expires, we will recognize the unrecognized tax benefit in the period that the uncertainty of the tax position is eliminated.

Income Taxes — Valuation Allowance

We assess the need for valuation allowances for deferred tax assets in each period based on whether it is more-likely-than-not that some portion of the deferred tax asset would not be realized. If, based on the available evidence, it is more-likely-than-not that such asset will not be realized, a valuation allowance is established against a deferred tax asset. The realization of a deferred tax asset ultimately depends on the existence of sufficient taxable income in either the carryback or carryforward periods under tax law. This assessment considers, among other matters, the nature, consistency, and magnitude of current and cumulative income and losses; forecasts of future profitability; the duration of statutory carryback or carryforward periods; our experience with operating loss and tax credit carryforwards being used before expiration; tax planning alternatives: and outlooks for the U.S. housing industry and broader economy. Changes in existing tax laws or rates could also affect our actual tax results. Due to uncertainties in the estimation process, particularly with respect to changes in facts and circumstances in future reporting periods, actual results could differ from the estimates used in our assessment that could have a material impact on our consolidated results of operations or financial position.

Segment Reporting

We operate in two segments: traditional home building and urban infill. We build and sell homes for detached and attached homes in luxury residential communities located in affluent suburban markets and cater to move-up, empty-nester, active-adult, 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, New Jersey, and New York

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

South:        Florida, Georgia, North Carolina, South Carolina and Texas

West:        Arizona, Colorado, Idaho, Nevada, Oregon, Utah and Washington

California:    California

In fiscal 2018, we acquired land and commenced development activities in the Salt Lake City, Utah and Portland, Oregon markets. We opened communities in these markets in fiscal 2019. In addition, as a result of two acquisitions, we commenced operations in Georgia and South Carolina in fiscal 2019. In fiscal 2018, we discontinued the sale of homes in Minnesota. Our operations in Minnesota were immaterial to the North geographic segment.

Related Party Transactions

See Note 4, “Investments in Unconsolidated Entities - Rental Property Joint Ventures” for information regarding Toll Brothers Realty Trust.

Recent Accounting Pronouncements

In May 2014, the FASB created ASC 606 with the issuance ASU No. 2014-09, “Revenue from Contracts with Customers,” which provides guidance for revenue recognition. ASC 606 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets. ASC 606 supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition,” and most industry-specific guidance. ASC 606 also supersedes some cost guidance included in ASC Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the previous guidance. These judgments and estimates include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 “Revenue from Contracts with Customers” (“ASU 2015-14”), which delayed the effective date of ASC 606 by one year. ASC 606, as amended by ASU 2015-14, became effective for our fiscal year beginning November 1, 2018, and we adopted the new standard under the modified retrospective transition method applied to contracts that were not completed as of November 1, 2018. We elected to apply the practical expedient which allows us to immediately expense incremental costs of obtaining a contract that would otherwise have been recognized in one year or less. We recognized the cumulative effect, net of tax, of applying ASC 606 as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the previous accounting standards. The adoption of ASC 606 did not have a material impact on our Consolidated Balance Sheet or Consolidated Statement of Operations or Comprehensive Income, and there have been no significant changes to our internal controls, processes, or systems as a result of implementing this new standard. However, the adoption of ASC 606 resulted in the following changes:

• Prior to adoption of ASC 606, we capitalized certain costs related to our marketing efforts, including sales offices and model home upgrades and furnishings within “Inventory” on our Consolidated Balance Sheets and amortized such costs through “Selling, general, and administrative” on our Consolidated Statements of Operations and Comprehensive Income. As of November 1, 2018, we reclassified $104.8 million to “Property, construction, and office equipment, net” on our Consolidated Balance Sheets, primarily related to sales offices and model home improvement costs. The amortization of such costs will remain unchanged and will continue to be included in “Selling, general, and administrative” on our Consolidated Statements of Operations and Comprehensive Income. Additionally, we recorded a net cumulative effect adjustment to retained earnings of approximately $13.2 million for certain other marketing costs that no longer qualify for capitalization under the new guidance, and such costs will be expensed as incurred in the future.

• Prior to adoption of ASC 606, we recorded our land sale revenues, net of their related expenses, within “Other income – net” on our Consolidated Statements of Operations and Comprehensive Income. As of November 1, 2018, we are presenting this activity in income from operations and breaking out the components of land sales revenues and land sales cost of revenues on our Consolidated Statements of Operations and Comprehensive Income. In addition, due to the existence of certain repurchase options in existing agreements to sell lots to third party builders in our master planned communities, both for wholly owned projects as well as projects in which we are a joint venture partner, we recorded a net cumulative effect adjustment to retained earnings of approximately $4.6 million to account for previously settled lots for which the related repurchase option had not yet expired. Because the amount of the deferred earning is not material to our consolidated financial statements, we have elected to recognize the revenue and related expenses for such lots in future periods when such repurchase options expire rather than account for them as leases under ASC 840, “Leases.”

• Prior to adoption of ASC 606, retained customer deposits were classified in “Other income – net” on our Consolidated Statements of Operations and Comprehensive Income. As of November 1, 2018, retained customer deposits, which totaled $13.2 million for our fiscal year ending October 31, 2019, are included in “Home sales revenue” on our Consolidated Statements of Operations and Comprehensive Income. Prior period balances for retained customer deposits have not been reclassified and are not material to our consolidated financial statements.

In February 2017, the FASB issued ASU No. 2017-05, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” (“ASU 2017-05”). ASU 2017-05 is meant to clarify the scope of the original guidance within Subtopic

610-20 that was issued in connection with ASC 606, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. ASU 2017-05 also added guidance for partial sales of nonfinancial assets. ASU 2017-05 became effective for our fiscal year beginning November 1, 2018 and we adopted ASU 2017-05 concurrent with our adoption of ASC 606. The adoption of ASU 2017-05 did not have a material effect on our consolidated financial statements and disclosures.

In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”), which provides guidance on the classification of restricted cash in the statement of cash flows. ASU 2016-18 became effective for our fiscal year beginning November 1, 2018 and resulted in a change in the presentation to our Consolidated Statement of Cash Flows but did not have a material effect on our other consolidated financial statements or disclosures. As a result of the adoption of ASU No. 2016-18, net cash provided by operations on the Consolidated Statement of Cash Flows for the years ended October 31, 2018 and 2017, decreased by $14.2 million and $103.4 million, respectively.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which is intended to reduce diversity in practice in how certain transactions are classified and makes eight targeted changes to how cash receipts and cash payments are presented in the statement of cash flows. ASU 2016-15 became effective for our fiscal year beginning November 1, 2018 and did not have a material effect on our consolidated financial statements and disclosures.

In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”), which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and provide additional disclosures. In July 2018, the FASB issued ASU No. 2018-11, “Leases: Targeted Improvements” (“ASU 2018-11”), which provides an entity with the option to apply the transition provisions of the new standard at its adoption date instead of at its earliest comparative period presented. ASU 2018-11 also provides an entity with a practical expedient that permits lessors to not separate nonlease components from the associated lease component if certain conditions are met. ASU 2016-02, as amended by ASU 2018-11, is effective for our fiscal year beginning November 1, 2019, at which time we will adopt the new standard using a modified retrospective approach. We expect to elect the package of transition practical expedients, which allows us to carry forward our historical assessment of (1) whether contracts are or contain leases, (2) lease classification, and (3) initial direct costs. In addition, we expect to elect the practical expedient that allows lessees the option to account for lease and non-lease components together as a single component for all classes of underlying assets. Upon adoption, we currently estimate the increase to our balance sheet will be approximately 1% of assets and approximately 2% of liabilities. While the recognition of such lease assets and liabilities will impact our Consolidated Balance Sheet and require additional disclosure, we do not expect that the new standard will have a material impact on our other consolidated financial statements. We also do not expect significant changes to our business processes, systems, or internal controls as a result of implementing the standard. 

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses. ASU 2016-13 is effective for our fiscal year beginning November 1, 2020, with early adoption permitted as of November 1, 2019. We are currently evaluating the impact that the adoption of ASU 2016-13 may have on our consolidated financial statements and disclosures.

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Stock-Based Benefit Plans (Tables)

12 Months Ended

Oct. 31, 2019

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation expense recognized

The following table provides information regarding the amount of total stock-based compensation expense recognized by us for fiscal 2019, 2018, and 2017 (amounts in thousands):

	2019		2018		2017
Total stock-based compensation expense recognized	$	26,180	$	28,312	$	28,466
Income tax benefit recognized	$	6,749	$	7,902	$	11,125

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

The following table summarizes the weighted-average assumptions and fair value used for stock option grants in each of the fiscal years ended October 31, 2019, 2018, and 2017:

	2019	2018	2017
Expected volatility	28.61% - 31.34%	27.66% - 31.83%	29.93% - 41.05%
Weighted-average volatility	30.46%	30.33%	34.72%
Risk-free interest rate	2.65% - 2.76%	2.17% - 2.35%	1.96% - 2.52%
Expected life (years)	4.63 - 8.50	5.00 - 8.50	4.60 - 9.24
Dividends	1.36%	0.67%	none
Weighted-average fair value per share of options granted	$10.22	$16.09	$12.16

Share-based Payment Arrangement, Option, Activity [Table Text Block]

The following table summarizes stock option activity for our plans during each of the fiscal years ended October 31, 2019, 2018, and 2017 (amounts in thousands, except per share amounts):

	2019				2018				2017
	Number of options		Weighted- average exercise price		Number of options		Weighted- average exercise price		Number of options		Weighted- average exercise price
Balance, beginning	5,503		$	28.84	6,120		$	27.60	8,514		$	26.36
Granted	344		32.42		210		47.84		595		31.61
Exercised	(1,044	)	21.87		(797	)	24.16		(2,863	)	24.54
Canceled	(23	)	34.47		(30	)	33.08		(126	)	32.10
Balance, ending	4,780		$	30.59	5,503		$	28.84	6,120		$	27.60
Options exercisable, at October 31,	3,799		$	29.52	4,231		$	27.03	4,266		$	25.42

Intrinsic Value of Options Outstanding and Exercisable [Table Text Block]

The following table provides information pertaining to the intrinsic value of options outstanding and exercisable at October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019		2018		2017
Intrinsic value of options outstanding	$	45,551	$	30,477	$	112,886
Intrinsic value of options exercisable	$	39,350	$	29,010	$	87,978

Intrinsic Value of Options Exercised and Fair Value of Options [Table Text Block]

Information pertaining to the intrinsic value of options exercised and the fair market value of options that became vested or modified in each of the fiscal years ended October 31, 2019, 2018, and 2017, is provided below (amounts in thousands):

	2019		2018		2017
Intrinsic value of options exercised	$	16,491	$	18,165	$	32,951
Fair market value of options vested	$	7,723	$	10,007	$	10,897

Information Regarding the Use of the Net Exercise Method [Table Text Block]

The following table provides information regarding the use of the net exercise method for fiscal 2019 and 2017:

	2019		2017
Options exercised	33,250		15,000
Shares withheld	21,842		14,472
Shares issued	11,408		528
Average fair market value per share withheld	$	33.03	$	32.98
Aggregate fair market value of shares withheld (in thousands)	$	721	$	477

Share-based Payment Arrangement, Option [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation expense recognized

Information regarding the stock compensation expense related to stock options for fiscal 2019, 2018 and 2017 was as follows (amounts in thousands):

	2019		2018		2017
Stock compensation expense recognized - options	$	5,181	$	7,497	$	10,337

Employee Stock [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

The following table provides information regarding our employee stock purchase plan for fiscal 2019, 2018, and 2017:

	2019		2018		2017
Shares issued	41,744		35,471		33,314
Average price per share	$	31.80	$	34.08	$	32.25
Compensation expense recognized (in thousands)	$	184	$	171	$	147

Vesting Based On Service [Member] | Restricted Stock Units (RSUs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

The following table provides information regarding these RSUs for fiscal 2019, 2018, and 2017:

	2019		2018		2017
Time-Based RSUs issued:
Number of RSUs issued	449,380		296,790		377,564
Weighted average closing price per share of our common stock on date of issuance	$	33.04	$	47.84	$	31.61
Aggregate fair value of RSUs issued (in thousands)	$	14,848	$	14,198	$	11,935
Time-Based RSU expense recognized (in thousands):	$	13,627	$	11,193	$	7,572

	2019		2018		2017
At October 31:
Aggregate number of Time-Based RSUs outstanding	1,137,936		850,853		673,224
Cumulative unamortized value of Time-Based RSUs (in thousands)	$	8,694	$	8,818	$	6,783

Schedule of the number of shares withheld, the income tax withholding due, and the remaining shares issued [Table Text Block]

The following table provides information regarding the number of shares withheld, the income tax withholding due, and the remaining shares issued to the recipients for fiscal 2019, 2018, and 2017:

	2019		2018		2017
Number of shares withheld	29,681		23,289		20,400
Income tax withholdings due	$	1,042	$	1,145	$	664,300
Remaining shares issued to the recipients	82,795		58,552		52,757

Vesting Based On Performance [Member] | Restricted Stock Units (RSUs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

The following table provides information regarding the issuance, valuation assumptions, and amortization of the Performance-Based RSUs issued in fiscal 2019, 2018, and 2017:

	2019		2018		2017
Number of shares underlying Performance-Based RSUs to be issued	158,721		135,554		168,417
Aggregate number of Performance-Based RSUs outstanding at October 31	645,538		786,857		940,117
Closing price of our common stock on Valuation Date	$	34.86	$	47.84	$	31.61
Aggregate grant date fair value of Performance-Based RSUs issued (in thousands)	$	5,533	$	6,485	$	5,324
Performance-Based RSU expense recognized (in thousands)	$	5,514	$	6,949	$	7,031
Unamortized value of Performance-Based RSUs at October 31 (in thousands)	$	3,431	$	3,824	$	4,599

Vesting based on total shareholder return [Member] | Restricted Stock Units (RSUs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation expense recognized

The following table provides information on expense recognized and the unamortized value of our TSR RSUs for fiscal 2019, 2018, and 2017 (amounts in thousands):

	2019		2018		2017
TSR RSUs expense recognized	$	1,673	$	2,502	$	3,400
Unamortized value of TSR RSUs at October 31	$	1,875	$	1,773	$	2,200

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

The specified performance periods are as follows:

	Performance Period	Target Number of TSR RSUs issued
Fiscal 2019	November 1, 2018 to October 31, 2021	48,710
Fiscal 2018	November 1, 2017 to October 31, 2020	39,411
Fiscal 2017	November 1, 2016 to October 31, 2019	46,361

Schedule of Share-based Payment Award, Total Shareholder Return RSUs, Valuation Assumptions [Table Text Block]

The following table summarizes the assumptions used in the Monte Carlo simulation and the fair value per share of the TSR RSUs granted in fiscal 2019, 2018, and 2017:

	2019	2018	2017
Weighted-average volatility	29.06%	26.58%	26.91%
Risk-free interest rate	2.64%	1.92%	1.52%
Dividends	none	none	none
Weighted-average fair value per share of TSR RSUs	$36.46	$52.62	$39.21

Schedule of the number of shares withheld, the income tax withholding due, and the remaining shares issued [Table Text Block]

The following table provides

information regarding the number of shares withheld, the income tax withholding due, and the remaining shares issued to the recipients for fiscal 2019 and 2018:

	2019		2018
Number of shares withheld	16,643		13,974
Income tax withholdings due	$	537,902	$	470,364
Remaining shares issued to the recipients	23,817		33,553

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Employee Retirement and Deferred Compensation Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2015	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Projected benefit obligation [Roll Forward]
Plan amendments adopted during year	$ 4,956
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease)	4,138	(3,115)	$ (1,201)
Unamortized Prior Service Cost [Roll Forward]
Plan amendments adopted during year	4,956
Supplemental Employee Retirement Plan [Member]
Plan costs
Service cost	403	568	619
Interest cost	1,416	1,198	1,142
Amortization of prior service obligation	506	936	969
Amortization of unrecognized losses	0	17	137
Total costs	2,325	2,719	2,867
Projected benefit obligation [Roll Forward]
Projected Benefit Obligation, beginning of year	35,515	38,222	38,980
Plan amendments adopted during year	4,956
Service cost	403	568	619
Interest cost	1,416	1,198	1,142
Defined Benefit Plan, Benefit Obligation, Benefits Paid	(1,358)	(1,358)	(1,318)
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease)	4,138	(3,115)	(1,201)
Projected Benefit Obligation, end of year	45,070	35,515	38,222
Unamortized Prior Service Cost [Roll Forward]
Unamorized Prior Service Cost, beginning of year	870	1,806	2,775
Plan amendments adopted during year	4,956
Amortization of prior service cost					$ (506)	$ (936)	$ (969)
Unamorized Prior Service Cost, end of year	5,320	870	1,806
Accumulated unrecognized loss					(2,567)	1,571	(1,560)
Accumulated Benefit Obligation					45,070	35,515	38,222
Accrued Benefit Obligation	$ 35,515	$ 38,222	$ 38,222		45,070	$ 35,515	$ 38,222
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year					1,687
Defined Benefit Plan, Expected Future Benefit Payment, Year Two					2,526
Defined Benefit Plan, Expected Future Benefit Payment, Year Three					2,785
Defined Benefit Plan, Expected Future Benefit Payment, Year Four					3,046
Defined Benefit Plan, Expected Future Benefit Payment, Year Five					3,077
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter					$ 16,878

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Fair Value Disclosures (Level 4 Inv Impair inputs) (Details 2)	3 Months Ended								9 Months Ended	12 Months Ended
	Oct. 31, 2019 USD ($) Homes_sold	Jul. 31, 2019 USD ($) Homes_sold	Apr. 30, 2019 USD ($) Homes_sold	Jan. 31, 2019 USD ($) Homes_sold	Oct. 31, 2018 USD ($)	Jul. 31, 2018 USD ($)	Apr. 30, 2018 USD ($)	Jan. 31, 2018 USD ($)	Jul. 31, 2018 USD ($)	Oct. 31, 2018 USD ($)
Fair value inputs, assets, quantitative information [Line Items]
Revenues										$ 7,143,258,000
Operating communities [Member] | Minimum [Member]
Fair value inputs, assets, quantitative information [Line Items]
Average selling price									$ 10,000
Operating communities [Member] | Maximum [Member]
Fair value inputs, assets, quantitative information [Line Items]
Average selling price									$ 155,000
Operating communities [Member] | Minimum [Member]
Fair value inputs, assets, quantitative information [Line Items]
Average selling price	$ 478,000	$ 530,000	$ 372,000	$ 836,000	$ 470,000	$ 0	$ 485,000	$ 381,000
Sales Pace	2	2	2	2	4	0	10	7
Fair Value Input, Discount Rate	13.80%	7.80%	12.00%	12.50%	13.50%	0.00%	16.90%	13.80%
Operating communities [Member] | Maximum [Member]
Fair value inputs, assets, quantitative information [Line Items]
Average selling price	$ 857,000	$ 1,113,000	$ 1,915,000	$ 13,495,000	$ 1,071,000	$ 0	$ 522,000	$ 1,029,000
Sales Pace	5	9	19	12	23	0	16	10
Fair Value Input, Discount Rate	14.50%	13.00%	26.00%	15.80%	16.30%	0.00%	16.90%	19.00%

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Loans Payable, Senior Notes, and Mortgage Company Loan Facility (Tables)

12 Months Ended

Oct. 31, 2019

Credit Facility, Loans Payable, Senior Notes, and Mortgage Company Loan Facility [Abstract]

Schedule of Debt [Table Text Block]

At October 31, 2019 and 2018, loans payable consisted of the following (amounts in thousands):

	2019			2018
Senior unsecured term loan	$	800,000		$	500,000
Loans payable – other	314,577			188,115
Deferred issuance costs	(3,128		)	(1,314		)
	$	1,111,449		$	686,801

Schedule of Loans Payable [Table Text Block]

Information regarding our loans payable at October 31, 2019 and 2018, is included in the table below ($ amounts in thousands):

	2019			2018
Aggregate loans payable at October 31	$	314,577		$	188,115
Weighted-average interest rate	4.49		%	4.68		%
Interest rate range	1.26% - 7.00%			1.15% - 7.87%
Loans secured by assets
Carrying value of loans secured by assets	$	314,577		$	152,281
Carrying value of assets securing loans	$	850,381		$	467,164

The contractual maturities of “Loans payable – other” as of October 31, 2019, ranged from two months to 27 years.

Schedule of Debt Instrument [Table Text Block]

At October 31, 2019 and 2018, senior notes consisted of the following (amounts in thousands):

	2019			2018
4.00% Senior Notes due December 31, 2018	$	—		$	350,000
6.75% Senior Notes due November 1, 2019	—			250,000
5.875% Senior Notes due February 15, 2022	419,876			419,876
4.375% Senior Notes due April 15, 2023	400,000			400,000
5.625% Senior Notes due January 15, 2024	250,000			250,000
4.875% Senior Notes due November 15, 2025	350,000			350,000
4.875% Senior Notes due March 15, 2027	450,000			450,000
4.35% Senior Notes due February 15, 2028	400,000			400,000
3.80% Senior Notes due November 1, 2029	400,000			—
Bond discounts, premiums, and deferred issuance costs, net	(9,978		)	(8,501		)
	$	2,659,898		$	2,861,375

Schedule of Maturities of Long-term Debt [Table Text Block]

As of October 31, 2019, the annual aggregate maturities of our loans and notes during each of the next five fiscal years are as follows (amounts in thousands):

	Amount
2020	$	234,096
2021	$	52,863
2022	$	437,818
2023	$	421,611
2024	$	290,745

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Fair Value Disclosures

12 Months Ended

Oct. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Fair Value Disclosures

Financial Instruments

A summary of assets and (liabilities) at October 31, 2019 and 2018, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (amounts in thousands):

		Fair value
Financial Instrument	Fair value hierarchy	October 31, 2019			October 31, 2018
Residential Mortgage Loans Held for Sale	Level 2	$	218,777		$	170,731
Forward Loan Commitments – Residential Mortgage Loans Held for Sale	Level 2	$	298		$	1,750
Interest Rate Lock Commitments (“IRLCs”)	Level 2	$	964		$	(4,366	)
Forward Loan Commitments – IRLCs	Level 2	$	(964	)	$	4,366

At October 31, 2019 and 2018, the carrying value of cash and cash equivalents and customer deposits held in escrow approximated fair value.

Mortgage Loans Held for Sale

At the end of the reporting period, we determine the fair value of our mortgage loans held for sale and the forward loan commitments we have entered into as a hedge against the interest rate risk of our mortgage loans and commitments using the market approach to determine fair value. The evaluation is based on the current market pricing of mortgage loans with similar terms and values as of the reporting date and the application of such pricing to the mortgage loan portfolio. We recognize the difference between the fair value and the unpaid principal balance of mortgage loans held for sale as a gain or loss. In addition, we recognize the fair value of our forward loan commitments as a gain or loss. These gains and losses are included in “Other income – net” in our Consolidated Statements of Operations and Comprehensive Income. Interest income on mortgage loans held for sale is calculated based upon the stated interest rate of each loan and is also included in “Other income – net.”

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

At October 31,	Aggregate unpaid principal balance		Fair value		Excess
2019	$	216,280	$	218,777	$	2,497
2018	$	170,728	$	170,731	$	3

IRLCs represent individual borrower agreements that commit us 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. We utilize 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 we agree 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. We estimate 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. The fair values of IRLCs and forward loan commitments are included in either “Receivables, prepaid expenses and other assets” or “Accrued expenses” in our Consolidated Balance Sheets, as appropriate. To manage the risk of non-performance of investors regarding the Forward Commitments, we assess the creditworthiness of the investors on a periodic basis.

Inventory

We recognize inventory impairment charges based on the difference in the carrying value of the inventory and its fair value at the time of the evaluation. The fair value of 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,” for additional information regarding our methodology on determining fair value. As further discussed in Note 1, determining the fair value of a community’s inventory involves a number of variables, many of which are interrelated. If we used a different input for any of the various unobservable inputs used in our 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:

Three months ended:	Selling price per unit ($ in thousands)	Sales pace per year (in units)	Discount rate
Fiscal 2019:
January 31	836 - 13,495	2 - 12	12.5% - 15.8%
April 30	372 - 1,915	2 - 19	12.0% - 26.0%
July 31	530 - 1,113	2 - 9	7.8% - 13%
October 31	478 - 857	2 - 5	13.8% - 14.5%
Fiscal 2018:
January 31	381 - 1,029	7 - 10	13.8% - 19.0%
April 30	485 - 522	10 - 16	16.9%
July 31(1)	–	–	–
October 31	470 - 1071	4 - 23	13.5% - 16.3%

(1) The impairment charges recognized were related to our decisions to sell lots in a bulk sale in certain communities rather than sell and construct homes as previously intended. The sale price per lot used in the fair value determination for these bulk sales ranged from $10,000 to $155,000.

The table below provides, for the periods indicated, the number of operating communities that we reviewed for potential impairment, the number of operating communities in which we recognized impairment charges, the amount of impairment charges recognized, and, as of the end of the period indicated, the fair value of those communities, net of impairment charges

($ amounts in thousands):

		Impaired operating communities
Three months ended:	Number of communities tested	Number of communities	Fair value of communities, net of impairment charges		Impairment charges recognized
Fiscal 2019:
January 31	49	5	$	37,282	$	5,785
April 30	64	6	$	36,159	17,495
July 31	69	3	$	5,436	1,100
October 31	71	7	$	18,910	6,695
					$	31,075
Fiscal 2018:
January 31	64	5	$	13,318	$	3,736
April 30	65	4	$	21,811	13,325
July 31	55	5	$	43,063	9,065
October 31	43	6	$	24,692	4,025
					$	30,151
Fiscal 2017:
January 31	57	2	$	8,372	$	4,000
April 30	46	6	$	25,092	2,935
July 31	53	4	$	5,965	1,360
October 31	51	1	$	6,982	1,500
					$	9,795

Debt

The table below provides, as of the dates indicated, the book value and estimated fair value of our debt at October 31, 2019 and 2018 (amounts in thousands):

		2019				2018
	Fair value hierarchy	Book value		Estimated fair value		Book value		Estimated fair value
Loans payable (a)	Level 2	$	1,114,577	$	1,112,040	$	688,115	$	687,974
Senior notes (b)	Level 1	2,669,876		2,823,043		2,869,876		2,779,270
Mortgage company loan facility (c)	Level 2	150,000		150,000		150,000		150,000
		$	3,934,453	$	4,085,083	$	3,707,991	$	3,617,244

(a) The estimated fair value of loans payable was based upon contractual cash flows discounted at interest rates that we believed were available to us for loans with similar terms and remaining maturities as of the applicable valuation date.

(b) The estimated fair value of our senior notes is based upon their market prices as of the applicable valuation date.

(c)

We believe that the carrying value of our mortgage company loan borrowings approximates their fair value.

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Investments in Unconsolidated Entities

12 Months Ended

Oct. 31, 2019

Investments in and Advances to Unconsolidated Entities [Abstract]

Investments in Unconsolidated Entities

Investments in Unconsolidated Entities

We have investments in various unconsolidated entities. These entities, which are structured as joint ventures (i) develop land for the joint venture participants and for sale to outside builders (“Land Development Joint Ventures”); (ii) develop for-sale homes (“Home Building Joint Ventures”); (iii) develop luxury for-rent residential apartments, commercial space, and a hotel (“Rental Property Joint Ventures”), which includes our investment in Toll Brothers Realty Trust (the “Trust”); and (iv) invest in distressed loans and real estate and provide financing and land banking to residential builders and developers for the acquisition and development of land and home sites (“Gibraltar Joint Ventures”). In fiscal 2019, 2018 and 2017, we recognized income from the unconsolidated entities in which we had an investment of $24.9 million, $85.2 million, and $116.1 million, respectively.

The table below provides information as of October 31, 2019, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Number of unconsolidated entities	8		4		20		9		41
Investment in unconsolidated entities	$	110,306	$	60,512	$	174,292	$	21,142	$	366,252
Number of unconsolidated entities with funding commitments by the Company	2		1		2		1		6
Company’s remaining funding commitment to unconsolidated entities	$	28,586	$	1,400	$	539	$	8,271	$	38,796

Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at October 31, 2019, regarding the debt financing obtained by category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Total
Number of joint ventures with debt financing	3		2		18		23
Aggregate loan commitments	$	100,859	$	133,453	$	1,393,838	$	1,628,150
Amounts borrowed under commitments	$	88,252	$	133,453	$	1,017,788	$	1,239,493

More specific and/or recent information regarding our investments in and future commitments to these entities is provided below.

Land Development Joint Ventures

In fiscal 2019, our Land Development Joint Ventures sold approximately 934 lots and recognized revenues of $261.7 million . We acquired 293 of these lots for $137.1 million. Our share of the joint venture income from the lots we acquired was insignificant. We recognized a charge in connection with one Land Development Joint Venture of $1.0 million in fiscal 2019.

In fiscal 2018, our Land Development Joint Ventures sold approximately 986 lots and recognized revenues of $351.4 million. We acquired 259 of these lots for $153.2 million. Our share of the income from the lots we acquired of $1.7 million was deferred by reducing our basis in those lots acquired. We recognized charges in connection with two Land Development Joint Ventures of $6.0 million in fiscal 2018.

In the fourth quarter of fiscal 2019, we entered into a joint venture with an unrelated party to purchase and develop a parcel of land located in Houston, Texas. The joint venture expects to develop approximately 263 home sites on this land in multiple phases. We have a 50% interest in this joint venture. The joint venture intends to sell approximately 50% of the value of the home sites to each of the members of the joint venture. At October 31, 2019, we had an investment of $5.9 million in this joint venture. The joint venture expects to secure third-party financing at a later date.

Home Building Joint Ventures

Our Home Building Joint Ventures are delivering homes in New York City and Jupiter, Florida. In fiscal 2019 and 2018, our Home Building Joint Ventures delivered 186 homes with a sales value of $374.6 million, and 100 homes with a sales value of $148.0 million, respectively.

Subsequent event

In November 2019, one of our Home Building Joint Ventures refinanced its existing $236.5 million construction loan with a $76.6 million post-construction loan that matures November 2021. We and an affiliate of our partner provided certain guarantees under the loan agreement. We estimate that our maximum exposure under these guarantees, if the full amount of the loan commitment was borrowed, would be $76.6 million without taking into account any recoveries from the underlying collateral or any reimbursement from our partner.

Rental Property Joint Ventures

As of October 31, 2019, our Rental Property Joint Ventures owned 25 for-rent apartment projects and a hotel, which are located in multiple metropolitan areas throughout the country. At October 31, 2019, these joint ventures had approximately 2,000 units that were occupied or ready for occupancy, 1,700 units in the lease-up stage, and 4,100 units in the design phase or under development. In addition, we either own or have under contract, approximately 10,900 units, of which 800 units are under active development; we intend to develop these units in joint ventures with unrelated parties in the future.

In fiscal 2019, we entered into five separate joint ventures with unrelated parties to develop luxury for-rent residential apartment projects located in Harrison, New York, Frisco, Texas, Atlanta, Georgia, Orange, California, and Dallas, Texas. Prior to the formation of these joint ventures, we acquired the properties and incurred approximately $145.1 million of land and land development costs. Our partners acquired interests in these entities ranging from 63.5% to 75% for an aggregate amount of $110.0 million and we recognized a gain on land sales of $9.3 million in fiscal 2019. At October 31, 2019, we had an aggregate investment of $48.8 million in these joint ventures. Concurrent with their formation, these joint ventures entered into construction loan agreements for an aggregate amount of $340.1 million. At October 31, 2019, the joint ventures had $39.3 million outstanding borrowings under these construction loan facilities.

In addition, in fiscal 2019, we entered into four separate joint ventures with unrelated parties to develop luxury for-rent residential apartment projects and student housing communities located in Boston, Massachusetts, San Diego, California, Tempe, Arizona and Miami, Florida. We contributed an aggregate of $79.6 million for our initial ownership interests in these joint ventures, which ranged from 50% to 98%. Due to our controlling financial interest, our power to direct the activities that most significantly impact each joint venture’s performance, and/or our obligation to absorb expected losses or receive benefits from these joint ventures, we consolidated these joint ventures at October 31, 2019. The carrying value of these joint ventures’ assets totaling $125.0 million are reflected in “Receivables, prepaid expenses, and other assets” in our Consolidated Balance Sheet as of October 31, 2019. Our partners’ interests aggregating $37.9 million in the joint ventures are reflected as a component of “Noncontrolling interest” in our Consolidated Balance Sheet as of October 31, 2019. These joint ventures intend to obtain additional equity investors and secure third-party financing at a later date. At such time, it is expected that these entities would no longer be consolidated.

In the second quarter of fiscal 2019, we entered into a joint venture with unrelated parties to develop, build, and operate single-family rental communities. As of October 31, 2019, we have committed to invest up to $60.0 million in this joint venture, of which $1.0 million has been invested.

In fiscal 2019, one of our Rental Property Joint Ventures, in which we had a 25% interest, sold its assets to an unrelated party for $77.8 million. The joint venture had owned, developed, and operated a multifamily residential community in Phoenixville, Pennsylvania. In connection with the sale, the joint venture repaid its entire $47.0 million loan. We received cash of $7.4 million and recognized a gain of $3.8 million, which is included in “Income from unconsolidated entities” in our Consolidated Statements of Operations and Comprehensive Income.

We have an investment in a joint venture in which we have a 50% interest that developed a luxury hotel in conjunction with a high-rise luxury condominium project in New York City developed by a related Home Building Joint Venture. The hotel commenced operations in February 2017. At October 31, 2019, we had an investment of $21.0 million in this joint venture. In the fourth quarter of fiscal 2019, the joint venture refinanced its existing $80.0 million, three-year term loan with a three-year, $120.0 million term loan, of which $110.0 million was advanced to the joint venture at closing. The proceeds from the refinancing were distributed to the members.

In fiscal 2018, we entered into four joint ventures with unrelated parties to develop luxury for-rent residential apartment projects located in suburban Atlanta, Georgia; Belmont, Massachusetts; and Washington, D.C. Prior to the formation of these joint ventures, we acquired the properties and incurred approximately $140.0 million of land and land development costs. Our partners acquired interests in these entities ranging from 50% to 75% for an aggregate amount of $80.3 million. At October 31, 2019, we had an investment of $65.6 million in these joint ventures. In fiscal 2018, several of these joint ventures entered into construction loan agreements for an aggregate amount of $166.1 million to finance the development of these projects. At October 31, 2019, the joint ventures had $156.1 million of outstanding borrowings under the construction loan facilities.

In addition, in fiscal 2018 we entered into a joint venture with an unrelated party to develop a luxury for-rent residential apartment project in a suburb of Boston, Massachusetts. We contributed cash of $15.9 million for our initial 85% ownership interest in this joint venture. Due to our controlling financial interest, our power to direct the activities that most significantly impact the joint venture’s performance, and our obligation to absorb expected losses or receive benefits from the joint venture, we consolidated this joint venture at October 31, 2019. The carrying value of the joint venture’s assets totaling $20.8 million are reflected in “Receivables, prepaid expenses, and other assets” in our Consolidated Balance Sheet at October 31, 2019. Our partner’s 15% interest of $3.1 million in the joint venture is reflected as a component of “Noncontrolling interest” in our Consolidated Balance Sheet as of October 31, 2019. The joint venture expects to admit an additional investor and secure third-party financing at a later date.

In fiscal 2018, three of our Rental Property Joint Ventures sold their assets to unrelated parties for $477.5 million. These joint ventures had owned, developed, and operated multifamily rental properties located in suburban Washington, D.C. and Westborough, Massachusetts, and a student housing community in College Park, Maryland. In connection with these sales, the joint ventures’ aggregate outstanding loan balance of $239.6 million was repaid. From our investment in these joint ventures, we received cash of $79.1 million and recognized gains from these sales of $67.2 million in fiscal 2018, which is included in “Income from unconsolidated entities” in our Consolidated Statement of Operations and Comprehensive Income.

In fiscal 2017, we sold one-half of our 50% interest in two of our Rental Property Joint Ventures to an unrelated party. In connection with these sales, we, along with our partners, recapitalized the joint ventures and refinanced the existing $166.3 million in construction loans with 10-year fixed rate loans totaling $189.0 million. As a result of these transactions, we received cash of $54.9 million and recognized gains of $26.7 million in fiscal 2017, which is included in “Income from unconsolidated entities” in our Consolidated Statements of Operations and Comprehensive Income. At October 31, 2019, we had a 25% interest in each of these joint ventures.

In 1998, we formed the Trust to invest in commercial real estate opportunities. The Trust is effectively owned one-third by us; one-third by current and former members of our senior management; and one-third by an unrelated party. As of October 31, 2019, our investment in the Trust was zero as cumulative distributions received from the Trust have been in excess of the carrying amount of our net investment. We provide development, finance, and management services to the Trust and recognized fees under the terms of various agreements in the amounts of $1.0 million, $2.0 million, and $2.0 million in fiscal 2019, 2018 and 2017, respectively. In fiscal 2019 and 2018, we received distributions of $3.9 million and $27.7 million, respectively, from the Trust, of which the full amount was recognized as income and included in “Income from unconsolidated entities” in our fiscal 2019 and 2018 Consolidated Statements of Operations and Comprehensive Income. No distributions were received from the Trust in fiscal 2017.

Subsequent events

In November 2019, we entered into a joint venture with an unrelated party to develop a for-rent residential apartment project in Dallas, Texas. Prior to the formation of this joint venture, we acquired the property and incurred approximately $19.0 million of land and land development costs. Our partner acquired a 50% interest in this entity for approximately $9.2 million, of which $7.7 million was distributed to us. Our initial investment is $11.9 million. Concurrent with its formation, the joint venture

entered into a $42.0 million construction loan agreement to finance the development of this project. We and an affiliate of our partner provided certain guarantees under the construction loan agreement. We estimate that our maximum exposure under these guarantees, if the full amount of the loan commitment was borrowed, would be $42.0 million without taking into account any recoveries from the underlying collateral or any reimbursement from our partner.

In December 2019, we sold all of our ownership interest in one of our Rental Property Joint Ventures to our partner for cash of $16.8 million, net of closing costs. The joint venture had owned, developed, and operated multifamily residential apartments in northern New Jersey. In connection with the sale, the joint venture’s existing $76.0 million loan was assumed by our partner. We expect to recognize a gain of approximately $10.0 million in the first quarter of fiscal 2019 from the sale.

In December 2019, we entered into a joint venture with an unrelated party to develop a for-rent student housing community in State College, Pennsylvania. Prior to the formation of this joint venture, we acquired the property and incurred approximately $32.0 million of land and land development costs. Our partner acquired a 70% interest in this entity for approximately $22.2 million, of which $17.9 million was distributed to us. Our initial investment is $12.9 million. Concurrent with its formation, the joint venture entered into a $79.5 million construction loan agreement to finance the development of this project. We and an affiliate of our partner provided certain guarantees under the construction loan agreement. We estimate that our maximum exposure under these guarantees, if the full amount of the loan commitment was borrowed, would be $79.5 million without taking into account any recoveries from the underlying collateral or any reimbursement from our partner.

Gibraltar Joint Ventures

We, through our wholly owned subsidiary, Gibraltar Capital and Asset Management, LLC (“Gibraltar”), have entered into eight ventures with an institutional investor to provide builders and developers with land banking and venture capital, two of which were formed in fiscal 2019. These ventures will finance builders’ and developers’ acquisition and development of land and home sites and pursue other complementary investment strategies. We are also a member in a separate venture with the same institutional investor, which purchased, from Gibraltar, certain foreclosed real estate owned and distressed loans in fiscal 2016. Our ownership interest in these ventures is approximately 25%. We may invest up to $100.0 million in these ventures. As of October 31, 2019, we had an investment of $20.5 million in these ventures.

Guarantees

The unconsolidated entities in which we have investments generally finance their activities with a combination of partner equity and debt financing. In some instances, we and our partners have guaranteed debt of certain unconsolidated entities. These guarantees may include any or all of the following: (i) project completion guarantees, including any cost overruns; (ii) repayment guarantees, generally covering a percentage of the outstanding loan; (iii) carry cost guarantees, which cover costs such as interest, real estate taxes, and insurance; (iv) an environmental indemnity provided to the lender that holds the lender harmless from and against losses arising from the discharge of hazardous materials from the property and non-compliance with applicable environmental laws; and (v) indemnification of the lender from “bad boy acts” of the unconsolidated entity.

In some instances, the guarantees provided in connection with loans to an unconsolidated entity are joint and several. In these situations, we generally have a reimbursement agreement with our partner that provides that neither party is responsible for more than its proportionate share or agreed upon share of the guarantee; however, if the joint venture partner does not have adequate financial resources to meet its obligations under the reimbursement agreement, we may be liable for more than our proportionate share.

We believe that, as of October 31, 2019, in the event we become legally obligated to perform under a guarantee of an obligation of an unconsolidated entity due to a triggering event, the collateral in such entity should be sufficient to repay a significant portion of the obligation. If it is not, we and our partners would need to contribute additional capital to the venture. At October 31, 2019, certain unconsolidated entities have loan commitments aggregating $1.53 billion, of which, if the full amount of the debt obligations were borrowed, we estimate $299.1 million to be our maximum exposure related solely to repayment and carry cost guarantees. At October 31, 2019, the unconsolidated entities had borrowed an aggregate of $1.14 billion, of which we estimate $239.6 million to be our maximum exposure related solely to repayment and carry cost guarantees. The terms of these guarantees generally range from 2 months to 9.7 years. These maximum exposure estimates do not take into account any recoveries from the underlying collateral or any reimbursement from our partners.

As of October 31, 2019, the estimated aggregate fair value of the guarantees provided by us related to debt and other obligations of certain unconsolidated entities was approximately $5.6 million. We have not made payments under any of the guarantees, nor have we been called upon to do so.

Variable Interest Entities

At October 31, 2019 and 2018, we determined that 18 and 11, respectively, of our joint ventures were VIEs under the guidance within ASC 810. For 13 and 10 of these VIEs as of October 31, 2019 and 2018, respectively, we concluded that we were not the primary beneficiary of these VIEs because the power to direct the activities of such VIEs that most significantly impact their performance was either shared by us and such VIEs’ other partners or such activities were controlled by our partner. For VIEs where the power to direct significant activities is shared, business plans, budgets, and other major decisions are required to be unanimously approved by all members. Management and other fees earned by us are nominal and believed to be at market rates, and there is no significant economic disproportionality between us and other members. The information presented below regarding the investments, commitments, and guarantees in unconsolidated entities deemed to be VIEs is also included in the information provided above.

As of October 31, 2019, we have consolidated five Rental Property Joint Ventures. We had one consolidated Rental Property Joint Venture as of October 31, 2018. The carrying value of these joint ventures’ assets totaled $145.8 million and $19.7 million as reflected in “Receivables, prepaid expenses, and other assets” in our Consolidated Balance Sheet as of October 31, 2019 and 2018, respectively. Our partners’ interests aggregating $41.0 million and $2.8 million in the joint ventures are reflected as a component of “Noncontrolling interest” in our Consolidated Balance Sheet as of October 31, 2019 and 2018, respectively. These joint ventures were determined to be VIEs due to their current inability to finance their activities without additional subordinated financial support as well as our partners’ inability to participate in the significant decisions of the joint venture and their lack of substantive kick-out rights. We further concluded that we are the primary beneficiary of these VIEs due to our controlling financial interest in such ventures as we have the power to direct the activities that most significantly impact the joint ventures’ performance and the obligation to absorb expected losses or receive benefits from the joint ventures. The assets of these VIEs can only be used to settle the obligations of the VIEs. In addition, in certain of the joint ventures, in the event additional contributions are required to be funded to the joint ventures prior to the admission of any additional investor at a future date, we will fund 100% of such contributions, including our partner’s pro rata share, which we expect would be funded through an interest-bearing loan.

At October 31, 2019 and 2018, our investments in our unconsolidated entities deemed to be VIEs, which are included in “Investments in unconsolidated entities” in our Consolidated Balance Sheets, totaled $37.0 million and $33.8 million, respectively. At October 31, 2019, the maximum exposure of loss to our investments in these entities was limited to our investments in the unconsolidated VIEs, except with regard to $76.0 million of loan guarantees and $8.3 million of additional commitments to fund the VIEs. Of our potential exposure for these loan guarantees, $76.0 million is related to repayment and carry cost guarantees, of which $76.0 million was borrowed at October 31, 2019. At October 31, 2018, the maximum exposure of loss to our investments in these entities was limited to our investments in the unconsolidated VIEs, except with regard to $70.0 million of loan guarantees and $10.8 million of additional commitments to fund the VIEs. Of our potential exposure for these loan guarantees, $70.0 million is related to repayment and carry cost guarantees, of which $70.0 million was borrowed at October 31, 2018.

Joint Venture Condensed Financial Information

The Condensed Balance Sheets, as of the dates indicated, and the Condensed Statements of Operations and Comprehensive Income, for the periods indicated, for the unconsolidated entities in which we have an investment, aggregated by type of business, are included below (in thousands).

Condensed Balance Sheets:

	October 31, 2019
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Cash and cash equivalents	$	23,669	$	38,115	$	20,647	$	3,388	$	85,819
Inventory	247,866		313,991				17,369		579,226
Loan receivables, net							56,545		56,545
Rental properties					1,021,848				1,021,848
Rental properties under development					535,197				535,197
Real estate owned							12,267		12,267
Other assets	96,602		78,916		36,879		364		212,761
Total assets	$	368,137	$	431,022	$	1,614,571	$	89,933	$	2,503,663
Debt, net of deferred financing costs	$	88,050	$	132,606	$	1,006,201			$	1,226,857
Other liabilities	49,302		33,959		84,735		7,831		175,827
Members’ equity	230,785		264,457		523,635		81,686		1,100,563
Noncontrolling interest							416		416
Total liabilities and equity	$	368,137	$	431,022	$	1,614,571	$	89,933	$	2,503,663
Company’s net investment in unconsolidated entities (1)	$	110,306	$	60,512	$	174,292	$	21,142	$	366,252

	October 31, 2018
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Cash and cash equivalents	$	47,409	$	22,834	$	23,750	$	8,469	$	102,462
Inventory	403,670		557,157				13,163		973,990
Loan receivables, net							40,065		40,065
Rental properties					808,785				808,785
Rental properties under development					437,586				437,586
Real estate owned							14,838		14,838
Other assets	93,322		49,723		21,917		1,067		166,029
Total assets	$	544,401	$	629,714	$	1,292,038	$	77,602	$	2,543,755
Debt, net of deferred financing costs	$	125,557	$	284,959	$	735,482	$	—	$	1,145,998
Other liabilities	29,096		72,897		51,992		4,585		158,570
Members’ equity	389,748		271,858		504,564		69,804		1,235,974
Noncontrolling interest							3,213		3,213
Total liabilities and equity	$	544,401	$	629,714	$	1,292,038	$	77,602	$	2,543,755
Company’s net investment in unconsolidated entities (1)	$	176,593	$	65,936	$	171,216	$	18,068	$	431,813

(1) Differences between our net investment in unconsolidated entities and our underlying equity in the net assets of the entities are primarily a result of impairments related to our investments in unconsolidated entities; interest capitalized on our investments; the estimated fair value of the guarantees provided to the joint ventures; unrealized gains on our retained joint venture interests; gains recognized from the sale of our ownership interests; and distributions from entities in excess of the carrying amount of our net investment.

Condensed Statements of Operations and Comprehensive Income:

	For the year ended October 31, 2019
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures			Gibraltar Joint Ventures			Total
Revenues	$	261,677	$	374,587	$	99,401		$	21,377		$	757,042
Cost of revenues	247,070		333,008		68,502			13,234			661,814
Other expenses	4,662		15,389		58,928			1,880			80,859
Total expenses	251,732		348,397		127,430			15,114			742,673
Gain on disposition of loans and REO								4,383			4,383
Income (loss) from operations	9,945		26,190		(28,029		)	10,646			18,752
Other income	3,079		6,144		16,651			12,793			38,667
Income (loss) before income taxes	13,024		32,334		(11,378		)	23,439			57,419
Income tax provision	193		457								650
Net income (loss) including earnings from noncontrolling interests	12,831		31,877		(11,378		)	23,439			56,769
Less: income attributable to noncontrolling interest								(9,593		)	(9,593		)
Net income (loss) attributable to controlling interest	$	12,831	$	31,877	$	(11,378	)	$	13,846		$	47,176
Company’s equity (deficit) in earnings of unconsolidated entities (2)	$	6,160	$	17,004	$	(824	)	$	2,528		$	24,868

	For the year ended October 31, 2018
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures			Gibraltar Joint Ventures			Total
Revenues	$	351,397	$	148,002	$	121,276		$	19,592		$	640,267
Cost of revenues	317,363		112,469		74,946			17,817			522,595
Other expenses	9,125		8,630		61,502			3,201			82,458
Total expenses	326,488		121,099		136,448			21,018			605,053
Gain on disposition of loans and REO								53,192			53,192
Income (loss) from operations	24,909		26,903		(15,172		)	51,766			88,406
Other income	5,939		2,134		222,744			1,937			232,754
Income before income taxes	30,848		29,037		207,572			53,703			321,160
Income tax provision	86		767								853
Net income including earnings from noncontrolling interests	30,762		28,270		207,572			53,703			320,307
Less: income attributable to noncontrolling interest								(28,297		)	(28,297		)
Net income attributable to controlling interest	$	30,762	$	28,270	$	207,572		$	25,406		$	292,010
Company’s equity in earnings of unconsolidated entities (2)	$	3,392	$	14,069	$	62,204		$	5,575		$	85,240

	For the year ended October 31, 2017
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures			Gibraltar Joint Ventures			Total
Revenues	$	288,440	$	475,260	$	115,519		$	10,090		$	889,309
Cost of revenues	191,965		286,446		70,108			14,428			562,947
Other expenses	6,508		13,102		59,503			3,942			83,055
Total expenses	198,473		299,548		129,611			18,370			646,002
Gain on disposition of loans and REO								48,079			48,079
Income (loss) from operations	89,967		175,712		(14,092		)	39,799			291,386
Other income	4,723		7,317		1,556			432			14,028
Income (loss) before income taxes	94,690		183,029		(12,536		)	40,231			305,414
Income tax provision	94		7,473		95						7,662
Net income (loss) including earnings from noncontrolling interests	94,596		175,556		(12,631		)	40,231			297,752
Less: income attributable to noncontrolling interest								(20,439		)	(20,439		)
Net income (loss) attributable to controlling interest	94,596		175,556		(12,631		)	19,792			277,313
Company’s equity in earnings of unconsolidated entities (2)	$	13,007	$	77,339	$	21,458		$	4,262		$	116,066

(2)

Differences between our equity in earnings of unconsolidated entities and the underlying net income (loss) of the entities are primarily a result of a basis difference of an acquired joint venture interest; distributions from entities in excess of the carrying amount of our net investment; recoveries of previously incurred charges; unrealized gains on our retained joint venture interests; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired.

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Supplemental Guarantor Information (Level 4 IS) (Details 2) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax					$ 2,455,238	$ 1,913,353	$ 1,599,199	$ 1,175,468	$ 7,223,966	$ 7,143,258	$ 5,815,058
Cost of Goods and Services Sold									5,808,618	5,673,007	4,562,303
Selling, general and administrative									734,548	684,035	605,572
Total										6,357,042	5,167,875
Income (loss) from operations									680,800	786,216	647,183
Other [Abstract]
Income (loss) from unconsolidated entities									24,868	85,240	116,066
Other income - net									81,502	62,460	51,062
Intercompany interest income									0	0	0
Interest Expense									0	0	0
Loss from subsidiaries									0	0	0
Income (loss) before income tax benefit	$ 272,649	$ 186,916	$ 176,159	$ 151,446	396,473	253,097	152,748	131,598	787,170	933,916	814,311
Income tax provision									197,163	185,765	278,816
Net income	202,315	146,318	129,324	112,050	$ 310,976	$ 193,258	$ 111,810	$ 132,107	590,007	748,151	535,495
Other Comprehensive Income (Loss), Net of Tax									(6,525)	2,926	1,426
Comprehensive Income (Loss), Net of Tax, Attributable to Parent									583,482	751,077	536,921
Toll Brothers Inc. [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax									0
Cost of Goods and Services Sold									0
Selling, general and administrative									542	77	58
Total										77	58
Income (loss) from operations									(542)	(77)	(58)
Other [Abstract]
Income (loss) from unconsolidated entities
Other income - net											10,574
Intercompany interest income
Interest Expense
Loss from subsidiaries									787,712	933,993	803,795
Income (loss) before income tax benefit									787,170	933,916	814,311
Income tax provision									197,163	185,765	278,816
Net income									590,007	748,151	535,495
Other Comprehensive Income (Loss), Net of Tax									(6,525)	2,926	1,426
Comprehensive Income (Loss), Net of Tax, Attributable to Parent									583,482	751,077	536,921
Subsidiary Issuer [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax									0
Cost of Goods and Services Sold									0
Selling, general and administrative									2,715	3,162	4,033
Total										3,162	4,033
Income (loss) from operations									(2,715)	(3,162)	(4,033)
Other [Abstract]
Income (loss) from unconsolidated entities
Other income - net
Intercompany interest income									135,087	142,084	156,366
Interest Expense									(132,372)	(138,922)	(162,882)
Loss from subsidiaries
Income (loss) before income tax benefit									0	0	(10,549)
Income tax provision											(3,612)
Net income									0	0	(6,937)
Other Comprehensive Income (Loss), Net of Tax
Comprehensive Income (Loss), Net of Tax, Attributable to Parent									0	0	(6,937)
Guarantor Subsidiaries [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax									7,093,521	6,899,891	5,668,610
Cost of Goods and Services Sold									5,655,023	5,427,753	4,414,461
Selling, general and administrative									775,030	709,265	633,000
Total										6,137,018	5,047,461
Income (loss) from operations									663,468	762,873	621,149
Other [Abstract]
Income (loss) from unconsolidated entities									12,930	44,646	12,271
Other income - net									48,052	30,561	26,653
Intercompany interest income									2,616	1,649	48
Interest Expense									(5,781)	(4,422)	(4,365)
Loss from subsidiaries									66,427	106,063	142,779
Income (loss) before income tax benefit									787,712	941,370	798,535
Income tax provision									197,298	187,248	273,418
Net income									590,414	754,122	525,117
Other Comprehensive Income (Loss), Net of Tax
Comprehensive Income (Loss), Net of Tax, Attributable to Parent									590,414	754,122	525,117
Non-Guarantor Subsidiaries [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax									360,673	453,073	336,671
Cost of Goods and Services Sold									259,562	303,962	223,243
Selling, general and administrative									75,905	83,003	77,115
Total										386,965	300,358
Income (loss) from operations									25,206	66,108	36,313
Other [Abstract]
Income (loss) from unconsolidated entities									11,938	40,594	103,795
Other income - net									26,352	(2,950)	10,674
Intercompany interest income									5,781	4,422	4,365
Interest Expense									(2,850)	(2,111)	(1,819)
Loss from subsidiaries
Income (loss) before income tax benefit									66,427	106,063	153,328
Income tax provision									16,637	21,097	52,500
Net income									49,790	84,966	100,828
Other Comprehensive Income (Loss), Net of Tax
Comprehensive Income (Loss), Net of Tax, Attributable to Parent									49,790	84,966	100,828
Eliminations [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax									(230,228)	(209,706)	(190,223)
Cost of Goods and Services Sold									(105,967)	(58,708)	(75,401)
Selling, general and administrative									(119,644)	(111,472)	(108,634)
Total										(170,180)	(184,035)
Income (loss) from operations									(4,617)	(39,526)	(6,188)
Other [Abstract]
Income (loss) from unconsolidated entities
Other income - net									7,098	34,849	3,161
Intercompany interest income									(143,484)	(148,155)	(160,779)
Interest Expense									141,003	145,455	169,066
Loss from subsidiaries									(854,139)	(1,040,056)	(946,574)
Income (loss) before income tax benefit									(854,139)	(1,047,433)	(941,314)
Income tax provision									(213,935)	(208,345)	(322,306)
Net income									(640,204)	(839,088)	(619,008)
Other Comprehensive Income (Loss), Net of Tax
Comprehensive Income (Loss), Net of Tax, Attributable to Parent									(640,204)	(839,088)	(619,008)
Home Building [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax	2,292,044	1,756,970	1,712,057	1,319,308					7,080,379	7,143,258	5,815,058
Cost of Goods and Services Sold									5,678,914	5,673,007	4,562,303
Home Building [Member] | Toll Brothers Inc. [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax
Cost of Goods and Services Sold
Home Building [Member] | Subsidiary Issuer [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax
Cost of Goods and Services Sold
Home Building [Member] | Guarantor Subsidiaries [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax									6,980,549
Cost of Goods and Services Sold									5,595,685
Home Building [Member] | Non-Guarantor Subsidiaries [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax									99,830
Cost of Goods and Services Sold									79,400
Home Building [Member] | Eliminations [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax
Cost of Goods and Services Sold									3,829
Land [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax	$ 86,956	$ 8,721	$ 4,037	$ 43,873					143,587	0	0
Cost of Goods and Services Sold									129,704	$ 0	$ 0
Land [Member] | Toll Brothers Inc. [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax
Cost of Goods and Services Sold
Land [Member] | Subsidiary Issuer [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax
Cost of Goods and Services Sold
Land [Member] | Guarantor Subsidiaries [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax									112,972
Cost of Goods and Services Sold									59,338
Land [Member] | Non-Guarantor Subsidiaries [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax									260,843
Cost of Goods and Services Sold									180,162
Land [Member] | Eliminations [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenue from Contract with Customer, Including Assessed Tax									(230,228)
Cost of Goods and Services Sold									$ (109,796)

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Income Taxes

12 Months Ended

Oct. 31, 2019

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

The following table provides a reconciliation of our effective tax rate from the federal statutory tax rate for the fiscal years ended October 31, 2019, 2018, and 2017 ($ amounts in thousands):

	2019				2018				2017
	$		%*		$		%*		$		%*
Federal tax provision at statutory rate	165,306		21.0		217,914		23.3		285,009		35.0
State tax provision, net of federal benefit	37,898		4.8		47,073		5.0		34,656		4.3
Domestic production activities deduction			—		(18,168	)	(1.9	)	(12,835	)	(1.6	)
Other permanent differences	188		—		(3,726	)	(0.4	)	(1,468	)	(0.2	)
Reversal of accrual for uncertain tax positions	(5,348	)	(0.7	)	(4,741	)	(0.5	)	(3,981	)	(0.5	)
Accrued interest on anticipated tax assessments	453		0.1		737		0.1		984		0.1
Increase in unrecognized tax benefits	2,153		0.3		1,122		0.1				—
Valuation allowance — reversed			—				—		(32,154	)	(3.9	)
Changes in tax law	(523	)	(0.1	)	(38,740	)	(4.1	)			—
Excess stock compensation benefit	(2,143	)	(0.3	)	(4,236	)	(0.5	)			—
Other	(821	)	(0.1	)	(11,470	)	(1.2	)	8,605		1.1
Income tax provision*	197,163		25.0		185,765		19.9		278,816		34.2

* Due to rounding, amounts may not add.

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law, which changed many longstanding foreign and domestic corporate and individual tax rules, as well as rules pertaining to the deductibility of employee compensation and benefits. The Tax Act, among other changes, reduced the corporate income tax rate from 35% to 21% and repealed the domestic production activities deduction effective for tax years beginning after December 31, 2017. For companies with a fiscal year that does not end on December 31, the change in law requires the application of a blended tax rate for the year of the change. Our blended tax rate for our fiscal year ending October 31, 2018 was 23.3%. Thereafter, the applicable statutory rate will be 21%. ASC 740, “Income Taxes” (“ASC 740”), requires all companies to reflect the effects of the new law in the period in which the law was enacted. Accordingly, we reduced the statutory tax rate applied to earnings from 35% in fiscal 2017 to 23.3% in fiscal 2018 and to 21% in fiscal 2019. In addition, we remeasured our net deferred tax liability for the tax law change, which resulted in an income tax benefit of $35.5 million in fiscal 2018.

We are subject to state tax in the jurisdictions in which we operate. We estimate our state tax liability based upon the individual taxing authorities’ regulations, estimates of income by taxing jurisdiction, and our ability to utilize certain tax-saving strategies. Based on our estimate of the allocation of income or loss among the various taxing jurisdictions and changes in tax regulations and their impact on our tax strategies, we estimated that our rate for state income taxes, before federal benefit, will be 6.1% in fiscal 2019. Our state income tax rate, before federal benefit, was 6.6% and 6.5% in fiscal 2018 and 2017, respectively.

The following table provides information regarding the provision (benefit) for income taxes for each of the fiscal years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019		2018			2017
Federal	$	161,904	$	157,836		$	278,095
State	35,259		27,929			721
	$	197,163	$	185,765		$	278,816
Current	$	94,399	$	207,695		$	93,106
Deferred	102,764		(21,930		)	185,710
	$	197,163	$	185,765		$	278,816

The components of income taxes payable at October 31, 2019 and 2018 are set forth below (amounts in thousands):

	2019		2018
Current	$	7,897	$	28,804
Deferred	95,074		2,155
	$	102,971	$	30,959

The following table provides a reconciliation of the change in the unrecognized tax benefits for the years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	2019			2018			2017
Balance, beginning of year	$	12,222		$	16,993		$	30,272
Increase in benefit as a result of tax positions taken in prior years	2,148			2,140			1,575
Increase in benefit as a result of tax positions taken in current year	1,126			949			431
Decrease in benefit as a result of settlements	(2,670		)	(4,707		)	(9,174		)
Decrease in benefit as a result of lapse of statute of limitations	(4,929		)	(3,153		)	(6,111		)
Balance, end of year	$	7,897		$	12,222		$	16,993

The statute of limitations has expired on our federal tax returns for fiscal years through 2015.

Our unrecognized tax benefits are included in the current portion of “Income taxes payable” on our Consolidated Balance Sheets. If these unrecognized tax benefits reverse in the future, they would have a beneficial impact on our effective tax rate at that time. During the next 12 months, it is reasonably possible that the amount of unrecognized tax benefits will change, but we are not able to provide a range of such change. The anticipated changes will be principally due to the expiration of tax statutes, settlements with taxing jurisdictions, increases due to new tax positions taken, and the accrual of estimated interest and penalties.

The amounts accrued for interest and penalties are included in the current portion of “Income taxes payable” on our Consolidated Balance Sheets. The following table provides information as to the amounts recognized in our tax provision, before reduction for applicable taxes and reversal of previously accrued interest and penalties, of potential interest and penalties in the fiscal years ended October 31, 2019, 2018, and 2017, and the amounts accrued for potential interest and penalties at October 31, 2019 and 2018 (amounts in thousands):

Expense recognized in the Consolidated Statements of Operations and Comprehensive Income
Fiscal year
2019	$	593
2018	$	1,152
2017	$	1,513

Accrued at:
October 31, 2019	$	1,169
October 31, 2018	$	2,115

The components of net deferred tax assets and liabilities at October 31, 2019 and 2018 are set forth below (amounts in thousands):

	2019			2018
Deferred tax assets:
Accrued expenses	$	54,162		$	54,531
Impairment charges	43,583			51,124
Inventory valuation differences	55,313			42,765
Stock-based compensation expense	23,928			27,949
Amounts related to unrecognized tax benefits	311			1,197
State tax, net operating loss carryforwards	67,718			73,288
Other	18			125
Total assets	245,033			250,979
Deferred tax liabilities:
Capitalized interest	44,196			43,982
Deferred income	277,005			181,839
Expenses taken for tax purposes not for book	3,571			5,477
Depreciation	5,024			6,877
Deferred marketing	10,311			14,959
Total liabilities	340,107			253,134
Net deferred tax liabilities	(95,074		)	(2,155		)

In accordance with GAAP, we assess whether a valuation allowance should be established based on our determination of whether it is more-likely-than-not that some portion or all of the deferred tax assets would not be realized. At October 31, 2019 and 2018, we determined that it was more-likely-than-not that our deferred tax assets would be realized. Accordingly, at October 31, 2019 and 2018, we did not have valuation allowances recorded against our federal or state deferred tax assets. During fiscal 2017, due to improved operating results, we reversed $32.2 million of state deferred tax asset valuation allowances.

We file tax returns in the various states in which we do business. Each state has its own statutes regarding the use of tax loss carryforwards. Some of the states in which we do business do not allow for the carryforward of losses, while others allow for carryforwards for 5 years to 20 years.

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Stockholders' Equity (Details Textual) - $ / shares		1 Months Ended	12 Months Ended
	Dec. 11, 2019	Dec. 31, 2019	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017	May 23, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Shares Authorized			400,000,000
Common Stock, Par or Stated Value Per Share			$ 0.01
Preferred Stock, Shares Authorized			15,000,000
Preferred Stock, Par or Stated Value Per Share			$ 0.01
Common Stock, Shares, Outstanding			140,900,000
Common Stock Reserved for Outstanding Stock Options and Restricted Stock Units			6,700,000
Preferred Stock, Shares Issued			0	0
Common Stock, Dividends, Per Share, Declared			$ 0.44	$ 0.41
Treasury Stock, Shares, Acquired			6,619,000	12,108,000	7,694,000
Treasury Stock Acquired, Average Cost Per Share			$ 35.28	$ 41.56	$ 37.81
Percentage of Ownership of Company's Common Stock for Restricts Certain Transfers			4.95%
Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Dividends, Per Share, Declared	$ 0.11
Treasury Stock, Shares, Acquired		3,600,000
Treasury Stock Acquired, Average Cost Per Share		$ 39.58
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance			7,700,000
May 2016 Repurchase Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorization to repurchase shares						20,000,000
December 2019 Repurchase Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorization to repurchase shares			20,000,000

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Accrued Expenses (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Change in warranty accruals for home closed in prior periods [Line Items]
Loss Contingency, Receivable	$ 114,162	$ 126,291
Changes in the warranty accrual
Balance, beginning of year	258,831	329,278	$ 370,992
Additions - homes closed during the year	35,475	37,045	31,798
Addition - liabilities acquired	855		1,495
Reclassification from other accruals			1,082
Charges incurred	(99,298)	(113,654)	(82,315)
Balance, end of year	201,886	258,831	329,278
Warranty change, homes closed in prior period, other [Member]
Changes in the warranty accrual
Increase (decrease) to accruals for homes closed in prior periods	6,023	6,162	$ 6,226
Water intrusion related [Member]
Changes in the warranty accrual
Balance, beginning of year	177,600
Balance, end of year	124,600	177,600
Other Assets [Member] | Water intrusion related [Member]
Change in warranty accruals for home closed in prior periods [Line Items]
Loss Contingency, Receivable	$ 97,900	$ 109,300

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Loans Payable, Senior Notes, and Mortgage Company Loan Facility Mortgage Company Loan Facility (Details Textual 4) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2019	Oct. 31, 2019	Oct. 31, 2018
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 1,628,150
Mortgage company loan facility		150,000	$ 150,000
Mortgage Loans on Real Estate, Commercial and Consumer, Net		218,777	170,731
Warehouse Agreement Borrowings [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity		75,000
Line of Credit Facility, Maximum Borrowing Capacity		$ 150,000
Debt Instrument, Maturity Date		Dec. 06, 2019
Debt Instrument, Interest Rate, Effective Percentage		3.68%
Mortgage company loan facility		$ 150,000	150,000
Mortgage Loans on Real Estate, Commercial and Consumer, Net		208,600	$ 163,200
Aggregate Outstanding Purchase Price Limitations		$ 0
London Interbank Offered Rate (LIBOR) [Member] | Warehouse Agreement Borrowings [Member]
Line of Credit Facility [Line Items]
Interest Rate on Loan Commitments in Addition to Libor		1.90%
Minimum [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		1.26%	1.15%
Subsequent Event [Member] | Warehouse Agreement Borrowings [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Maturity Date	Dec. 04, 2020

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Income Taxes (Details 5) - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018
Components of Deferred Tax Assets and Liabilities [Abstract]
Deferred Tax Assets Accrued Expenses	$ 54,162	$ 54,531
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Impairment Losses	43,583	51,124
Deferred Tax Assets, Inventory	55,313	42,765
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost	23,928	27,949
Deferred Tax Asset Unrecognized Tax Benefits	311	1,197
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	67,718	73,288
Deferred Tax Assets, Other	18	125
Deferred Tax Assets, Gross	245,033	250,979
Deferred Tax Liabilities, Deferred Expense, Capitalized Interest	44,196	43,982
Deferred Tax Liabilities, Tax Deferred Income	277,005	181,839
Deferred tax liability, expenses taken for tax not for book	3,571	5,477
Deferred Tax Liabilities, Property, Plant and Equipment	5,024	6,877
Deferred Tax Liabilities Marketing	10,311	14,959
Deferred Tax Liabilities, Gross	340,107	253,134
Deferred Tax Liabilities, Net	$ (95,074)	$ (2,155)

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Income Taxes (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Reconciliation of change in gross unrecognized tax benefits
Balance, beginning of year	$ 12,222	$ 16,993	$ 30,272
Increase in benefit as a result of tax positions taken in prior years	2,148	2,140	1,575
Increase in benefit as a result of tax positions taken in current year	1,126	949	431
Decrease in benefit as a result of settlements	(2,670)	(4,707)	(9,174)
Decrease in benefit as a result of lapse of statute of limitations	(4,929)	(3,153)	(6,111)
Balance, end of year	$ 7,897	$ 12,222	$ 16,993

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Stock-Based Benefit Plans (Stock Options - Expense Table) (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Stock-based compensation expense recognized
Stock based expense recognized	$ 26,180	$ 28,312	$ 28,466
Share-based Payment Arrangement, Option [Member]
Stock-based compensation expense recognized
Stock based expense recognized	$ 5,181	$ 7,497	$ 10,337

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Inventory (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Schedule of inventory [Line Items]
Inventory Write-down	$ 42,360	$ 35,156	$ 14,794
Land controlled for future communities [Member]
Schedule of inventory [Line Items]
Inventory Write-down	11,285	2,820	1,949
Land Owned for Future Communities [Member]
Schedule of inventory [Line Items]
Inventory Write-down	0	2,185	3,050
Operating communities [Member]
Schedule of inventory [Line Items]
Inventory Write-down	$ 31,075	$ 30,151	$ 9,795

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Investments in Unconsolidated Entities Investments in Unconsolidated Entities (Details 2) $ in Thousands	Oct. 31, 2019 USD ($) joint_ventures
Schedule of Equity Method Investments [Line Items]
Number of joint ventures with loan commitments | joint_ventures	23
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,628,150
Amounts borrowed under commitments	$ 1,239,493
Land Development Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures with loan commitments | joint_ventures	3
Line of Credit Facility, Maximum Borrowing Capacity	$ 100,859
Amounts borrowed under commitments	$ 88,252
Home Building Joint Ventures, Total [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures with loan commitments | joint_ventures	2
Line of Credit Facility, Maximum Borrowing Capacity	$ 133,453
Amounts borrowed under commitments	$ 133,453
Rental Property Joint Ventures, including Trust I [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures with loan commitments | joint_ventures	18
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,393,838
Amounts borrowed under commitments	$ 1,017,788

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Acquisition

12 Months Ended

Oct. 31, 2019

Business Combinations [Abstract]

Acquisition

Acquisitions

In fiscal 2019, we acquired substantially all of the assets and operations of Sharp Residential, LLC (“Sharp”) and Sabal Homes LLC (“Sabal”), for approximately $162.4 million in cash. Sharp operates in metropolitan Atlanta, Georgia; Sabal operates in the Charleston, Greenville, and Myrtle Beach, South Carolina markets. The assets acquired, based on our preliminary purchase price allocations, were primarily inventory, including approximately 2,550 home sites owned or controlled through land purchase agreements. In connection with these acquisitions, we assumed contracts to deliver 204 homes with an aggregate value of $96.1 million. The average price of undelivered homes at the dates of acquisitions was approximately $471,100. As a result of these acquisitions, our selling community count increased by 22 communities.

In November 2016, we acquired all of the assets and operations of Coleman Real Estate Holdings, LLC (“Coleman”) for approximately $83.1 million in cash. The assets acquired were primarily inventory, including approximately 1,750 home sites owned or controlled through land purchase agreements. As part of the acquisition, we assumed contracts to deliver 128 homes with an aggregate value of $38.8 million. The average price of the undelivered homes at the date of acquisition was approximately $303,000. As a result of this acquisition, our selling community count increased by 15 communities at the acquisition date.

The acquisitions discussed above were accounted for as a business combination and were not material to our results of operations or financial condition.

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Earnings Per Share Information (Tables)

12 Months Ended

Oct. 31, 2019

Earnings Per Share [Abstract]

Calculation of income per share

Information pertaining to the calculation of earnings per share for each of the fiscal years ended October 31, 2019, 2018, and 2017, is as follows (amounts in thousands):

	2019		2018		2017
Numerator:
Net income as reported	$	590,007	$	748,151	$	535,495
Plus: Interest and costs attributable to 0.5% Exchangeable Senior Notes, net of income tax benefit (a)					1,434
Numerator for diluted earnings per share	$	590,007	$	748,151	$	536,929
Denominator:
Basic weighted-average shares	145,008		151,984		162,222
Common stock equivalents (b)	1,493		2,217		2,147
Shares attributable to 0.5% Exchangeable Senior Notes (a)					5,118
Diluted weighted-average shares	146,501		154,201		169,487
Other information:
Weighted-average number of antidilutive options and restricted stock units (c)	1,156		813		1,966
Shares issued under stock incentive and employee stock purchase plans	1,394		1,066		3,116

(a) On September 15, 2017, we redeemed these notes.

(b) Common stock equivalents represent the dilutive effect of outstanding in-the-money stock options using the treasury stock method and shares expected to be issued under our restricted stock units programs.

(c)

Weighted-average number of antidilutive options and restricted stock units are based upon the average of the average quarterly closing prices of our common stock on the NYSE for the year.

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Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Accumulated Other Comprehensive Loss [Line Items]
Accumulated Other Comprehensive (Loss) Income, Net of Tax, beginning of period	$ 694	$ (1,910)	$ (3,336)
Other comprehensive (loss) income before reclassifications	(9,094)	3,115	1,201
Gross amounts reclassified from accumulated other comprehensive income	304	953	1,105
Income tax benefit (expense)	2,265	(1,142)	(880)
Other comprehensive income (loss), net of tax	(6,525)	2,926	1,426
Adoption of ASU 2018-02	(17,987)	1,463
Accumulated Other Comprehensive (Loss) Income, Net of Tax, end of period	(5,831)	694	(1,910)
Accounting Standards Update 2018-02 [Member]
Accumulated Other Comprehensive Loss [Line Items]
Adoption of ASU 2018-02	$ 0	$ (322)

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Fair Value Disclosures (Level 4 inventory fv) (Details 3) $ in Thousands	3 Months Ended												12 Months Ended
	Oct. 31, 2019 USD ($)	Jul. 31, 2019 USD ($)	Apr. 30, 2019 USD ($)	Jan. 31, 2019 USD ($)	Oct. 31, 2018 USD ($)	Jul. 31, 2018 USD ($)	Apr. 30, 2018 USD ($)	Jan. 31, 2018 USD ($)	Oct. 31, 2017 USD ($)	Jul. 31, 2017 USD ($)	Apr. 30, 2017 USD ($)	Jan. 31, 2017 USD ($)	Oct. 31, 2019 USD ($)	Oct. 31, 2018 USD ($)	Oct. 31, 2017 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Inventory impairments and write-offs													$ 42,360	$ 35,156	$ 14,794
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Operating communities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of Operating Communities Tested	71	69	64	49	43	55	65	64	51	53	46	57
Number of Communities impaired	7	3	6	5	6	5	4	5	1	4	6	2
Fair Value Of Communities Net Of Impairment Charges	$ 18,910	$ 5,436	$ 36,159	$ 37,282	$ 24,692	$ 43,063	$ 21,811	$ 13,318	$ 6,982	$ 5,965	$ 25,092	$ 8,372	18,910	24,692	6,982
Inventory impairments and write-offs	$ 6,695	$ 1,100	$ 17,495	$ 5,785	$ 4,025	$ 9,065	$ 13,325	$ 3,736	$ 1,500	$ 1,360	$ 2,935	$ 4,000	$ 31,075	$ 30,151	$ 9,795

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Accrued Expenses (Tables)

12 Months Ended

Oct. 31, 2019

Payables and Accruals [Abstract]

Accrued expenses

Accrued expenses at October 31, 2019 and 2018, consisted of the following (amounts in thousands):

	2019		2018
Land, land development and construction	$	192,658	$	213,641
Compensation and employee benefits	183,592		159,374
Escrow liability	31,587		32,543
Self-insurance	193,405		168,012
Warranty	201,886		258,831
Deferred income	51,678		42,179
Interest	31,307		40,325
Commitments to unconsolidated entities	9,283		10,553
Other	55,536		48,123
	$	950,932	$	973,581

Changes in the warranty accrual

The table below provides a reconciliation of the changes in our warranty accrual during fiscal 2019, 2018, and 2017 as follows (amounts in thousands):

	2019			2018			2017
Balance, beginning of year	$	258,831		$	329,278		$	370,992
Additions - homes closed during the year	35,475			37,045			31,798
Addition - liabilities acquired	855						1,495
Increase in accruals for homes closed in prior years	6,023			6,162			6,226
Reclassification from other accruals							1,082
Charges incurred	(99,298		)	(113,654		)	(82,315		)
Balance, end of year	$	201,886		$	258,831		$	329,278

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Commitments and Contingencies (Details 3) $ in Thousands	Oct. 31, 2019 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Operating Leases, Future Minimum Payments Due, Next Twelve Months	$ 15,430
Operating Leases, Future Minimum Payments, Due in Two Years	12,576
Operating Leases, Future Minimum Payments, Due in Three Years	10,082
Operating Leases, Future Minimum Payments, Due in Four Years	7,800
Operating Leases, Future Minimum Payments, Due in Five Years	6,691
Operating Leases, Future Minimum Payments, Due Thereafter	218,221
Operating Leases, Future Minimum Payments Due	$ 270,800

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Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Revenue from Contract with Customer, Including Assessed Tax					$ 2,455,238	$ 1,913,353	$ 1,599,199	$ 1,175,468	$ 7,223,966	$ 7,143,258	$ 5,815,058
Cost of Goods and Services Sold									5,808,618	5,673,007	4,562,303
Selling, general and administrative									734,548	684,035	605,572
Income from operations									680,800	786,216	647,183
Other:
Income (loss) from unconsolidated entities									24,868	85,240	116,066
Other income - net									81,502	62,460	51,062
Income before income taxes	$ 272,649	$ 186,916	$ 176,159	$ 151,446	396,473	253,097	152,748	131,598	787,170	933,916	814,311
Income tax provision									197,163	185,765	278,816
Net income	$ 202,315	$ 146,318	$ 129,324	$ 112,050	$ 310,976	$ 193,258	$ 111,810	$ 132,107	590,007	748,151	535,495
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Other comprehensive income (loss), net of tax									(6,525)	2,926	1,426
Total comprehensive income									$ 583,482	$ 751,077	$ 536,921
Income per share:
Basic	$ 1.43	$ 1.01	$ 0.88	$ 0.76	$ 2.10	$ 1.28	$ 0.73	$ 0.85	$ 4.07	$ 4.92	$ 3.30
Diluted	$ 1.41	$ 1.00	$ 0.87	$ 0.76	$ 2.08	$ 1.26	$ 0.72	$ 0.83	$ 4.03	$ 4.85	$ 3.17
Weighted average number of shares:
Basic	141,909	144,750	146,622	146,751	148,066	151,257	152,731	155,882	145,008	151,984	162,222
Diluted	143,567	146,275	148,129	148,032	149,603	153,173	155,129	158,897	146,501	154,201	169,487
Home Building [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 2,292,044	$ 1,756,970	$ 1,712,057	$ 1,319,308					$ 7,080,379	$ 7,143,258	$ 5,815,058
Cost of Goods and Services Sold									5,678,914	5,673,007	4,562,303
Land [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 86,956	$ 8,721	$ 4,037	$ 43,873					143,587	0	0
Cost of Goods and Services Sold									$ 129,704	$ 0	$ 0

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Document and Entity Information	12 Months Ended
	Oct. 31, 2019
Document and Entity Information [Abstract]
Entity Central Index Key	0000794170
Current Fiscal Year End Date	--10-31
Document Type	10-K
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false

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Inventory

12 Months Ended

Oct. 31, 2019

Inventory Disclosure [Abstract]

Inventory

Inventory

Inventory at October 31, 2019 and 2018 consisted of the following (amounts in thousands):

	2019		2018
Land controlled for future communities	$	182,929	$	139,985
Land owned for future communities	868,202		916,616
Operating communities	6,821,917		6,541,618
	$	7,873,048	$	7,598,219

Operating communities include communities offering homes for sale, communities that have sold all available home sites but have not completed delivery of the homes, communities that were previously offering homes for sale but are temporarily closed due to business conditions or non-availability of improved home sites and that are expected to reopen within 12 months of the end of the fiscal year being reported on, and communities preparing to open for sale. The carrying value attributable to operating communities includes the cost of homes under construction, land and land development costs, the carrying cost of home sites in current and future phases of these communities, and the carrying cost of model homes.

Communities that were previously offering homes for sale but are temporarily closed due to business conditions, do not have any remaining backlog, and are not expected to reopen within 12 months of the end of the fiscal period being reported on have been classified as land owned for future communities. Backlog consists of homes under contract but not yet delivered to our home buyers (“backlog”).

Information regarding the classification, number, and carrying value of these temporarily closed communities at October 31, 2019, 2018, and 2017, is provided in the table below ($ amounts in thousands):

	2019		2018		2017
Land owned for future communities:
Number of communities	16		17		14
Carrying value (in thousands)	$	120,857	$	124,426	$	110,732
Operating communities:
Number of communities	1		1		6
Carrying value (in thousands)	$	2,871	$	2,622	$	26,749

We provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable in each of the three fiscal years ended October 31, 2019, 2018, and 2017, as shown in the table below (amounts in thousands):

Charge:	2019		2018		2017
Land controlled for future communities	$	11,285	$	2,820	$	1,949
Land owned for future communities	—		2,185		3,050
Operating communities	31,075		30,151		9,795
	$	42,360	$	35,156	$	14,794

See Note 12, “Fair Value Disclosures,” for information regarding the number of operating communities that we tested for potential impairment, the number of operating communities in which we recognized impairment charges, the amount of impairment charges recognized, and the fair value of those communities, net of impairment charges.

See Note 15, “Commitments and Contingencies,” for information regarding land purchase commitments.

At October 31, 2019, we evaluated our land purchase contracts, including those to acquire land for apartment developments, to determine whether any of the selling entities were VIEs and, if they were, whether we were the primary beneficiary of any of them. Under these land purchase contracts, we do not possess legal title to the land; our maximum exposure to loss is generally limited to deposits paid to the sellers and predevelopment costs incurred; and the creditors of the sellers generally have no recourse against us. At October 31, 2019, we determined that 127 land purchase contracts, with an aggregate purchase price of $2.00 billion, on which we had made aggregate deposits totaling $149.2 million, were VIEs, but that we were not the primary beneficiary of any VIE related to such land purchase contracts. At October 31, 2018, we determined that 110 land purchase contracts, with an aggregate purchase price of $1.88 billion, on which we had made aggregate deposits totaling $120.5 million, were VIEs, but that we were not the primary beneficiary of any VIE related to such land purchase contracts.

Interest incurred, capitalized, and expensed in each of the three fiscal years ended October 31, 2019, 2018, and 2017, was as follows (amounts in thousands):

	2019			2018			2017
Interest capitalized, beginning of year	$	319,364		$	352,049		$	369,419
Interest incurred	178,035			165,977			175,944
Interest expensed to home sales cost of revenues	(185,045		)	(190,734		)	(172,832		)
Interest expensed to land sales cost of revenues	(1,787		)
Interest expensed in other income				(3,760		)	(4,823		)
Interest reclassified to property, construction and office equipment							(485		)
Interest capitalized on investments in unconsolidated entities	(4,571		)	(7,220		)	(8,824		)
Previously capitalized interest transferred to investments in unconsolidated entities							(8,708		)
Previously capitalized interest on investments in unconsolidated entities transferred to inventory	5,327			3,052			2,358
Interest capitalized, end of year	$	311,323		$	319,364		$	352,049

During fiscal 2017, we reclassified 9.0 million of inventory related to two golf courses to property, construction, and office equipment and such amount was net of $3.5 million transferred to accrued liabilities related to deferred golf membership fees. The amounts were reclassified due to the completion of construction of the facilities and the substantial completion of the master planned communities of which the golf facilities are a part.

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Supplemental Guarantor Information (Level 4 BS) (Details 1) - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
ASSETS
Cash and cash equivalents	$ 1,286,014	$ 1,182,195	$ 712,829
Inventory	7,873,048	7,598,219
Property, construction and office equipment, net	273,412	193,281
Receivables, prepaid expenses, and other assets	715,441	550,778
Mortgage loans held for sale	218,777	170,731
Customer deposits held in escrow	74,403	117,573
Investments in unconsolidated entities	366,252	431,813
Investments in and Advances to Affiliates, Amount of Equity	0	0
Income Taxes Receivable	20,791	0
Total assets	10,828,138	10,244,590
Liabilities:
Loans payable	1,111,449	686,801
Senior notes	2,659,898	2,861,375
Mortgage company loan facility	150,000	150,000
Customer deposits	385,596	410,864
Accounts payable	348,599	362,098
Accrued expenses	950,932	973,581
Advances from Affiliiate	0	0
Income taxes payable	102,971	30,959
Total liabilities	5,709,445	5,475,678
Stockholders’ equity:
Common stock	1,529	1,779
Additional paid-in capital	726,879	727,053
Retained earnings	4,774,422	5,161,551
Treasury stock, at cost -- 11,999 shares and 31,774 shares at October 31, 2019 and October 31, 2018, respectively	(425,183)	(1,130,878)
Accumulated other comprehensive loss	(5,831)	694	(1,910)	$ (3,336)
Total stockholders' equity	5,071,816	4,760,199
Noncontrolling interest	46,877	8,713
Total equity	5,118,693	4,768,912	$ 4,537,090	$ 4,235,202
Total liabilities and stockholders' equity	10,828,138	10,244,590
Toll Brothers Inc. [Member]
ASSETS
Cash and cash equivalents	0	0
Inventory
Property, construction and office equipment, net
Receivables, prepaid expenses, and other assets
Mortgage loans held for sale
Customer deposits held in escrow
Investments in unconsolidated entities
Investments in and Advances to Affiliates, Amount of Equity	5,172,737	4,791,629
Income Taxes Receivable	20,791
Total assets	5,193,528	4,791,629
Liabilities:
Loans payable
Senior notes
Mortgage company loan facility
Customer deposits
Accounts payable
Accrued expenses	754	471
Advances from Affiliiate
Income taxes payable	102,971	30,959
Total liabilities	103,725	31,430
Stockholders’ equity:
Common stock	1,529	1,779
Additional paid-in capital	726,879	727,053
Retained earnings	4,792,409	5,161,551
Treasury stock, at cost -- 11,999 shares and 31,774 shares at October 31, 2019 and October 31, 2018, respectively	(425,183)	(1,130,878)
Accumulated other comprehensive loss	(5,831)	694
Total stockholders' equity	5,089,803	4,760,199
Noncontrolling interest
Total equity	5,089,803	4,760,199
Total liabilities and stockholders' equity	5,193,528	4,791,629
Subsidiary Issuer [Member]
ASSETS
Cash and cash equivalents	0	0
Inventory
Property, construction and office equipment, net
Receivables, prepaid expenses, and other assets
Mortgage loans held for sale
Customer deposits held in escrow
Investments in unconsolidated entities
Investments in and Advances to Affiliates, Amount of Equity	2,704,551	2,916,557
Income Taxes Receivable
Total assets	2,704,551	2,916,557
Liabilities:
Loans payable
Senior notes	2,659,898	2,861,375
Mortgage company loan facility
Customer deposits
Accounts payable
Accrued expenses	26,812	37,341
Advances from Affiliiate
Income taxes payable
Total liabilities	2,686,710	2,898,716
Stockholders’ equity:
Common stock
Additional paid-in capital	49,400	49,400
Retained earnings	(31,559)	(31,559)
Treasury stock, at cost -- 11,999 shares and 31,774 shares at October 31, 2019 and October 31, 2018, respectively
Accumulated other comprehensive loss
Total stockholders' equity	17,841	17,841
Noncontrolling interest
Total equity	17,841	17,841
Total liabilities and stockholders' equity	2,704,551	2,916,557
Guarantor Subsidiaries [Member]
ASSETS
Cash and cash equivalents	1,082,067	1,011,863
Inventory	7,791,759	7,493,205
Property, construction and office equipment, net	263,140	169,265
Receivables, prepaid expenses, and other assets	224,681	291,299
Mortgage loans held for sale
Customer deposits held in escrow	74,303	116,332
Investments in unconsolidated entities	50,594	44,329
Investments in and Advances to Affiliates, Amount of Equity	163,371	91,740
Income Taxes Receivable
Total assets	9,649,915	9,218,033
Liabilities:
Loans payable	1,109,614	686,801
Senior notes
Mortgage company loan facility
Customer deposits	383,583	405,318
Accounts payable	347,715	361,655
Accrued expenses	569,476	600,907
Advances from Affiliiate	1,052,370	1,551,196
Income taxes payable
Total liabilities	3,462,758	3,605,877
Stockholders’ equity:
Common stock	48	48
Additional paid-in capital
Retained earnings	6,187,109	5,612,108
Treasury stock, at cost -- 11,999 shares and 31,774 shares at October 31, 2019 and October 31, 2018, respectively
Accumulated other comprehensive loss
Total stockholders' equity	6,187,157	5,612,156
Noncontrolling interest
Total equity	6,187,157	5,612,156
Total liabilities and stockholders' equity	9,649,915	9,218,033
Non-Guarantor Subsidiaries [Member]
ASSETS
Cash and cash equivalents	203,947	170,332
Inventory	81,289	105,014
Property, construction and office equipment, net	10,272	24,016
Receivables, prepaid expenses, and other assets	610,541	392,559
Mortgage loans held for sale	218,777	170,731
Customer deposits held in escrow	100	1,241
Investments in unconsolidated entities	315,658	387,484
Investments in and Advances to Affiliates, Amount of Equity	147,413	126,872
Income Taxes Receivable
Total assets	1,587,997	1,378,249
Liabilities:
Loans payable	36,092
Senior notes
Mortgage company loan facility	150,000	150,000
Customer deposits	2,013	5,546
Accounts payable	884	443
Accrued expenses	443,180	462,128
Advances from Affiliiate	503,058	476,040
Income taxes payable
Total liabilities	1,135,227	1,094,157
Stockholders’ equity:
Common stock	3,006	3,006
Additional paid-in capital	177,034	93,734
Retained earnings	225,853	178,639
Treasury stock, at cost -- 11,999 shares and 31,774 shares at October 31, 2019 and October 31, 2018, respectively
Accumulated other comprehensive loss
Total stockholders' equity	405,893	275,379
Noncontrolling interest	46,877	8,713
Total equity	452,770	284,092
Total liabilities and stockholders' equity	1,587,997	1,378,249
Eliminations [Member]
ASSETS
Cash and cash equivalents	0	0
Inventory
Property, construction and office equipment, net
Receivables, prepaid expenses, and other assets	(119,781)	(133,080)
Mortgage loans held for sale
Customer deposits held in escrow
Investments in unconsolidated entities
Investments in and Advances to Affiliates, Amount of Equity	(8,188,072)	(7,926,798)
Income Taxes Receivable
Total assets	(8,307,853)	(8,059,878)
Liabilities:
Loans payable	(34,257)
Senior notes
Mortgage company loan facility
Customer deposits
Accounts payable
Accrued expenses	(89,290)	(127,266)
Advances from Affiliiate	(1,555,428)	(2,027,236)
Income taxes payable
Total liabilities	(1,678,975)	(2,154,502)
Stockholders’ equity:
Common stock	(3,054)	(3,054)
Additional paid-in capital	(226,434)	(143,134)
Retained earnings	(6,399,390)	(5,759,188)
Treasury stock, at cost -- 11,999 shares and 31,774 shares at October 31, 2019 and October 31, 2018, respectively
Accumulated other comprehensive loss
Total stockholders' equity	(6,628,878)	(5,905,376)
Noncontrolling interest
Total equity	(6,628,878)	(5,905,376)
Total liabilities and stockholders' equity	$ (8,307,853)	$ (8,059,878)

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Summary Consolidated Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Quarterly Summary of Income Statement Data [Abstract]
Revenue from Contract with Customer, Including Assessed Tax					$ 2,455,238	$ 1,913,353	$ 1,599,199	$ 1,175,468	$ 7,223,966	$ 7,143,258	$ 5,815,058
Gross Profit					524,487	403,734	301,042	240,988
Income before income taxes	$ 272,649	$ 186,916	$ 176,159	$ 151,446	396,473	253,097	152,748	131,598	787,170	933,916	814,311
Net income	$ 202,315	$ 146,318	$ 129,324	$ 112,050	$ 310,976	$ 193,258	$ 111,810	$ 132,107	$ 590,007	$ 748,151	$ 535,495
Earnings Per Share [Abstract]
Earnings Per Share, Basic	$ 1.43	$ 1.01	$ 0.88	$ 0.76	$ 2.10	$ 1.28	$ 0.73	$ 0.85	$ 4.07	$ 4.92	$ 3.30
Earnings Per Share, Diluted	$ 1.41	$ 1.00	$ 0.87	$ 0.76	$ 2.08	$ 1.26	$ 0.72	$ 0.83	$ 4.03	$ 4.85	$ 3.17
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Basic weighted-average shares	141,909	144,750	146,622	146,751	148,066	151,257	152,731	155,882	145,008	151,984	162,222
Weighted Average Number of Shares Outstanding, Diluted	143,567	146,275	148,129	148,032	149,603	153,173	155,129	158,897	146,501	154,201	169,487
Home Building [Member]
Quarterly Summary of Income Statement Data [Abstract]
Revenue from Contract with Customer, Including Assessed Tax	$ 2,292,044	$ 1,756,970	$ 1,712,057	$ 1,319,308					$ 7,080,379	$ 7,143,258	$ 5,815,058
Gross Profit	431,477	355,215	337,710	277,063
Land [Member]
Quarterly Summary of Income Statement Data [Abstract]
Revenue from Contract with Customer, Including Assessed Tax	86,956	8,721	4,037	43,873					$ 143,587	$ 0	$ 0
Gross Profit	$ 658	$ 2,489	$ 1,116	$ 9,620

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Accrued Expenses

12 Months Ended

Oct. 31, 2019

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

Accrued expenses at October 31, 2019 and 2018, consisted of the following (amounts in thousands):

	2019		2018
Land, land development and construction	$	192,658	$	213,641
Compensation and employee benefits	183,592		159,374
Escrow liability	31,587		32,543
Self-insurance	193,405		168,012
Warranty	201,886		258,831
Deferred income	51,678		42,179
Interest	31,307		40,325
Commitments to unconsolidated entities	9,283		10,553
Other	55,536		48,123
	$	950,932	$	973,581

At the time each home is closed and title and possession are transferred to the home buyer, we record an initial accrual for expected warranty costs on that home. Our initial accrual for expected warranty costs is based upon historical warranty claim experience. Adjustments to our warranty liabilities related to homes delivered in prior periods are recorded in the period in which a change in our estimate occurs. The table below provides a reconciliation of the changes in our warranty accrual during fiscal 2019, 2018, and 2017 as follows (amounts in thousands):

	2019			2018			2017
Balance, beginning of year	$	258,831		$	329,278		$	370,992
Additions - homes closed during the year	35,475			37,045			31,798
Addition - liabilities acquired	855						1,495
Increase in accruals for homes closed in prior years	6,023			6,162			6,226
Reclassification from other accruals							1,082
Charges incurred	(99,298		)	(113,654		)	(82,315		)
Balance, end of year	$	201,886		$	258,831		$	329,278

Since fiscal 2014, we have received water intrusion claims from owners of homes built since 2002 in communities located in Pennsylvania and Delaware (which are in our Mid-Atlantic region). During fiscal 2019, we continued to receive water intrusion claims from homeowners in this region, mostly related to older homes, and we continue to perform review procedures to assess, among other things, the number of affected homes, whether repairs are likely to be required, and the extent of such repairs.

Our review process, conducted quarterly, includes an analysis of many factors applicable to these communities to determine whether a claim is likely to be received and the estimated costs to resolve any such claim, including: the closing dates of the homes; the number of claims received; our inspection of homes; an estimate of the number of homes we expect to repair; the type and cost of repairs that have been performed in each community; the estimated costs to remediate pending and future claims; the expected recovery from our insurance carriers and suppliers; and the previously recorded amounts related to these claims. We also monitor legal developments relating to these types of claims and review the volume, relative merits and adjudication of claims in litigation or arbitration.

As of October 31, 2019, our recorded aggregate estimated repair costs to be incurred for known and unknown water intrusion claims was $324.4 million, which was unchanged from October 31, 2018, and our recorded aggregate expected recoveries from insurance carriers and suppliers were approximately $152.6 million, which was also unchanged from October 31, 2018. Our recorded remaining estimated repair costs, which reflects a reduction for the aggregate amount expended to resolve claims, were approximately $124.6 million at October 31, 2019 and $177.6 million at October 31, 2018. Our recorded remaining expected recoveries from insurance carriers and suppliers were approximately $97.9 million at October 31, 2019 and $109.3 million at October 31, 2018. As noted above, our review process includes a number of estimates that are based on assumptions with uncertain outcomes, including, but not limited to, the number of homes to be repaired, the extent of repairs needed, the repair procedures employed, the cost of those repairs, outcomes of litigation or arbitrations, and expected recoveries from insurance carriers and suppliers. Due to the degree of judgment required in making these estimates and the inherent uncertainty in potential outcomes, it is reasonably possible that our actual costs and recoveries could differ from those recorded and such

differences could be material. In addition, due to such uncertainty, we are unable to estimate the range of any such differences. With respect to our insurance receivables, disputes between homebuilders and carriers over coverage positions relating to construction defect claims are common, and resolution of claims with carriers involves the exchange of significant amounts of information and frequently involves legal action. While our primary insurance carrier has funded substantially all of the water intrusion claims that we have submitted to it to date, other insurance carriers have disputed coverage for the same claims under policies that are substantially the same. As a result, we entered arbitration proceedings during the third quarter of fiscal 2019 with these carriers. Based on the legal merits that support our pending insurance claims, review by legal counsel, our history of collecting significant amounts funded by our primary carrier under policies that are substantially the same, and the high credit ratings of our insurance carriers, we believe collection of our remaining recorded insurance receivables is probable. However, due to the complexity of the underlying claims and the variability of the other factors described above, it is reasonably possible that our actual insurance recoveries could materially differ from those recorded. Resolution of these known and unknown claims is expected to take several years.

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Earnings Per Share Information

12 Months Ended

Oct. 31, 2019

Earnings Per Share [Abstract]

Income per Share Information

Earnings Per Share Information

Information pertaining to the calculation of earnings per share for each of the fiscal years ended October 31, 2019, 2018, and 2017, is as follows (amounts in thousands):

	2019		2018		2017
Numerator:
Net income as reported	$	590,007	$	748,151	$	535,495
Plus: Interest and costs attributable to 0.5% Exchangeable Senior Notes, net of income tax benefit (a)					1,434
Numerator for diluted earnings per share	$	590,007	$	748,151	$	536,929
Denominator:
Basic weighted-average shares	145,008		151,984		162,222
Common stock equivalents (b)	1,493		2,217		2,147
Shares attributable to 0.5% Exchangeable Senior Notes (a)					5,118
Diluted weighted-average shares	146,501		154,201		169,487
Other information:
Weighted-average number of antidilutive options and restricted stock units (c)	1,156		813		1,966
Shares issued under stock incentive and employee stock purchase plans	1,394		1,066		3,116

(a) On September 15, 2017, we redeemed these notes.

(b) Common stock equivalents represent the dilutive effect of outstanding in-the-money stock options using the treasury stock method and shares expected to be issued under our restricted stock units programs.

(c)

Weighted-average number of antidilutive options and restricted stock units are based upon the average of the average quarterly closing prices of our common stock on the NYSE for the year.

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Income Taxes (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Tax Benefits potential Interest and Penalties
Tax Benefits potential Interest and Penalties	$ 593	$ 1,152	$ 1,513
Tax Benefit Amount Accrued for potential Interest and Penalties
Tax Benefit Amount Accrued for potential Interest and Penalties	$ 1,169	$ 2,115

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Stock-Based Benefit Plans (Stock Option Activity Table) (Details 3) - Share-based Payment Arrangement, Option [Member] - $ / shares shares in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning outstanding balance, stock options	5,503	6,120	8,514
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	344	210	595
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	(1,044)	(797)	(2,863)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	(23)	(30)	(126)
Ending outstanding balance, stock options	4,780	5,503	6,120
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	3,799	4,231	4,266
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 28.84	$ 27.60	$ 26.36
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	32.42	47.84	31.61
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	21.87	24.16	24.54
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price	34.47	33.08	32.10
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	30.59	28.84	27.60
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 29.52	$ 27.03	$ 25.42

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Stock-Based Benefit Plans (Details Textual) $ in Thousands	12 Months Ended
	Oct. 31, 2019 USD ($) shares	Oct. 31, 2018 USD ($) shares	Oct. 31, 2017 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized value of stock compensation	$ 18,700	$ 20,900	$ 24,200
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares	7,700,000	5,100,000	5,800,000
Inactive Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock incentive plans	4
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized value of stock compensation	$ 4,700
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	4 years 9 months 18 days
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	1 year 2 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	4 years
Inactive Plans [Member] | Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Inactive Plans [Member] | Stock Option Non Employee Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	2 years
Active plans [Member] | Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Active plans [Member] | Stock Option Non Employee Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	2 years
Vesting Based On Service [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized value of stock compensation	$ 8,694	$ 8,818	$ 6,783
Vesting based on total shareholder return [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Maximum [Member] | Vesting Based On Service [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Minimum [Member] | Vesting Based On Service [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	2 years

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Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Reconciliation of Company's effective tax rate from federal statutory rate
Federal tax provision at statutory rate	$ 165,306	$ 217,914	$ 285,009
State tax provision, net of federal benefit	37,898	47,073	34,656
Domestic production activities deduction		(18,168)	(12,835)
Other permanent differences	188	(3,726)	(1,468)
Reversal of accrual for uncertain tax positions	(5,348)	(4,741)	(3,981)
Accrued interest on anticipated tax assessments	453	737	984
Increase in unrecognized tax benefits	2,153	1,122
Valuation allowance - recognized	0
Valuation allowance - reversed			(32,154)
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount	(523)	(38,740)
Effective Income Tax Rate Reconciliation, Tax Benefit from Stock Compensation	(2,143)	(4,236)
Other	(821)	(11,470)	8,605
Income tax provision	$ 197,163	$ 185,765	$ 278,816
Federal tax provision at statutory rate, percentage	21.00%	23.30%	35.00%
State tax provision, net of federal benefit, percentage	4.80%	5.00%	4.30%
Domestic production activities deduction, Percent	0.00%	(1.90%)	(1.60%)
Other permanent differences, Percent	0.00%	(0.40%)	(0.20%)
Reversal of accrual for uncertain tax positions, percent	(0.70%)	(0.50%)	(0.50%)
Accrued interest on anticipated tax assessments, percentage	0.10%	0.10%	0.10%
Increase in unrecognized tax benefits, percentage	0.30%	0.10%	0.00%
Valuation allowance - reversed, percentage	0.00%	0.00%	(3.90%)
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent	(0.10%)	(4.10%)	0.00%
Effective Income Tax Rate Reconciliation Tax Benefit from Stock Compensation, Percent	(0.30%)	(0.50%)	0.00%
Other, percentage	(0.10%)	(1.20%)	1.10%
Income tax provision, percentage	25.00%	19.90%	34.20%

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Loans Payable, Senior Notes, and Mortgage Company Loan Facility (Details 4) $ in Thousands	Oct. 31, 2019 USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	$ 234,096
Long-term Debt, Maturities, Repayments of Principal in Year Two	52,863
Long-term Debt, Maturities, Repayments of Principal in Year Three	437,818
Long-term Debt, Maturities, Repayments of Principal in Year Four	421,611
Long-term Debt, Maturities, Repayments of Principal in Year Five	$ 290,745

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Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Income tax disclosures [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	23.30%	35.00%
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent	4.80%	5.00%	4.30%
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range Not Possible	During the next 12 months, it is reasonably possible that the amount of unrecognized tax benefits will change, but we are not able to provide a range of such change.
Valuation allowance - reversed			$ (32,154)
State and Local Jurisdiction [Member]
Income tax disclosures [Line Items]
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent	6.10%	6.60%	6.50%
State Net Operating Loss Carryforwards [Member] | Minimum [Member]
Income tax disclosures [Line Items]
net operating loss, carryback expiration periods	5 years
State Net Operating Loss Carryforwards [Member] | Maximum [Member]
Income tax disclosures [Line Items]
net operating loss, carryback expiration periods	20 years

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Inventory (Details 1) $ in Thousands	Oct. 31, 2019 USD ($) communities	Oct. 31, 2018 USD ($) communities	Oct. 31, 2017 USD ($) communities
Operating communities [Member]
Temporarily Closed communities
Number of Communities | communities	1	1	6
Carrying Value | $	$ 2,871	$ 2,622	$ 26,749
Land Owned for Future Communities [Member]
Temporarily Closed communities
Number of Communities | communities	16	17	14
Carrying Value | $	$ 120,857	$ 124,426	$ 110,732

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Investments in Unconsolidated Entities Investments in Unconsolidated Entities (Details 1) $ in Thousands	Oct. 31, 2019 USD ($) joint_ventures	Oct. 31, 2018 USD ($)
Schedule of Investments [Line Items]
Number of Joint Ventures | joint_ventures	41
Investments in unconsolidated entities | $	$ 366,252	$ 431,813
Number of joint venture with funding commitments | joint_ventures	6
Other Commitment | $	$ 38,796
Land Development Joint Ventures [Member]
Schedule of Investments [Line Items]
Number of Joint Ventures | joint_ventures	8
Investments in unconsolidated entities | $	$ 110,306	176,593
Number of joint venture with funding commitments | joint_ventures	2
Home Building Joint Ventures, Total [Member]
Schedule of Investments [Line Items]
Number of Joint Ventures | joint_ventures	4
Investments in unconsolidated entities | $	$ 60,512	65,936
Number of joint venture with funding commitments | joint_ventures	1
Rental Property Joint Ventures, including Trust I [Member]
Schedule of Investments [Line Items]
Number of Joint Ventures | joint_ventures	20
Investments in unconsolidated entities | $	$ 174,292	171,216
Number of joint venture with funding commitments | joint_ventures	2
Gibraltar Joint Ventures [Member]
Schedule of Investments [Line Items]
Number of Joint Ventures | joint_ventures	9
Investments in unconsolidated entities | $	$ 21,142	$ 18,068
Number of joint venture with funding commitments | joint_ventures	1
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Land Development Joint Ventures [Member]
Schedule of Investments [Line Items]
Other Commitment | $	$ 28,586
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Home Building Joint Ventures, Total [Member]
Schedule of Investments [Line Items]
Other Commitment | $	1,400
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Rental Property Joint Ventures, including Trust I [Member]
Schedule of Investments [Line Items]
Other Commitment | $	539
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Gibraltar Joint Ventures [Member]
Schedule of Investments [Line Items]
Other Commitment | $	$ 8,271

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Stock-Based Benefit Plans (Stock Options Intrinsic Value Table) (Details 4) - Share-based Payment Arrangement, Option [Member] - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 45,551	$ 30,477	$ 112,886
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 39,350	$ 29,010	$ 87,978

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Investments in Unconsolidated Entities (Details 4) - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018
Condensed Balance Sheets:
Cash and cash equivalents	$ 85,819	$ 102,462
Inventory	579,226	973,990
Loan receivables, net	56,545	40,065
Rental properties	1,021,848	808,785
Rental properties under development	535,197	437,586
Real estate owned	12,267	14,838
Other assets	212,761	166,029
Total assets	2,503,663	2,543,755
Debt	1,226,857	1,145,998
Other liabilities	175,827	158,570
Members' equity	1,100,563	1,235,974
Noncontrolling interest	416	3,213
Total liabilities and equity	2,503,663	2,543,755
Investments in unconsolidated entities	366,252	431,813
Land Development Joint Ventures [Member]
Condensed Balance Sheets:
Cash and cash equivalents	23,669	47,409
Inventory	247,866	403,670
Loan receivables, net
Rental properties
Rental properties under development
Real estate owned
Other assets	96,602	93,322
Total assets	368,137	544,401
Debt	88,050	125,557
Other liabilities	49,302	29,096
Members' equity	230,785	389,748
Noncontrolling interest
Total liabilities and equity	368,137	544,401
Investments in unconsolidated entities	110,306	176,593
Home Building Joint Ventures, Total [Member]
Condensed Balance Sheets:
Cash and cash equivalents	38,115	22,834
Inventory	313,991	557,157
Loan receivables, net
Rental properties
Rental properties under development
Real estate owned
Other assets	78,916	49,723
Total assets	431,022	629,714
Debt	132,606	284,959
Other liabilities	33,959	72,897
Members' equity	264,457	271,858
Noncontrolling interest
Total liabilities and equity	431,022	629,714
Investments in unconsolidated entities	60,512	65,936
Rental Property Joint Ventures, including Trust I [Member]
Condensed Balance Sheets:
Cash and cash equivalents	20,647	23,750
Inventory
Loan receivables, net
Rental properties	1,021,848	808,785
Rental properties under development	535,197	437,586
Real estate owned
Other assets	36,879	21,917
Total assets	1,614,571	1,292,038
Debt	1,006,201	735,482
Other liabilities	84,735	51,992
Members' equity	523,635	504,564
Noncontrolling interest
Total liabilities and equity	1,614,571	1,292,038
Investments in unconsolidated entities	174,292	171,216
Gibraltar Joint Ventures [Member]
Condensed Balance Sheets:
Cash and cash equivalents	3,388	8,469
Inventory	17,369	13,163
Loan receivables, net	56,545	40,065
Rental properties
Rental properties under development
Real estate owned	12,267	14,838
Other assets	364	1,067
Total assets	89,933	77,602
Debt		0
Other liabilities	7,831	4,585
Members' equity	81,686	69,804
Noncontrolling interest	416	3,213
Total liabilities and equity	89,933	77,602
Investments in unconsolidated entities	$ 21,142	$ 18,068

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Loans Payable, Senior Notes, and Mortgage Company Loan Facility Loans Payable (Details) - USD ($) $ in Thousands	Oct. 31, 2019	Nov. 02, 2018	Oct. 31, 2018
Debt Instrument [Line Items]
Long-term line of credit	$ 1,239,493
Other Loans Payable	314,577		$ 188,115
Loans payable	1,111,449		686,801
May 2016 Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term line of credit	0
Senior unsecured term loan [Member]
Debt Instrument [Line Items]
Unsecured Long-term Debt, Noncurrent	800,000	$ 500,000	500,000
Deferred Finance Costs, Net	$ (3,128)		$ (1,314)

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Stock-Based Benefit Plans Stock-Based Benefit Plans (TSR RSUs) (Details 8) - USD ($)	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	$ 26,180,000	$ 28,312,000	$ 28,466,000
Unamortized value of stock compensation	$ 18,700,000	$ 20,900,000	24,200,000
Restricted Stock Units (RSUs) [Member] | Vesting based on total shareholder return [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld for income taxes related to share issued for RSU	16,643	13,974
Value of shares withheld for income taxes on restricted shares issued	$ 537,902	$ 470,364
Share-based Payment Arrangement, Expense	1,673,000	2,502,000	3,400,000
Unamortized value of stock compensation	$ 1,875,000	$ 1,773,000	$ 2,200,000
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	23,817	33,553
Vesting Based On Performance [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld for income taxes related to share issued for RSU	123,409	126,330	133,098
Value of shares withheld for income taxes on restricted shares issued	$ 4,000,000.0	$ 6,000,000.0	$ 4,200,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	158,721	135,554	168,417
Minimum Percentage of Units Issued to Recipients of Base Award	0.00%	0.00%
Maximum Percentage of Units Issued to Recipients of Base Award	150.00%	110.00%
Share-based Payment Arrangement, Expense	$ 5,514,000	$ 6,949,000	$ 7,031,000
Unamortized value of stock compensation	$ 3,431,000	$ 3,824,000	$ 4,599,000
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	176,631	162,484	169,416
Vesting based on total shareholder return [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	48,710	39,411	46,361
Minimum Percentage of Units Issued to Recipients of Base Award	0.00%	0.00%
Maximum Percentage of Units Issued to Recipients of Base Award	150.00%	200.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	29.06%	26.58%	26.91%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.64%	1.92%	1.52%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Payments	$ 0	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 36.46	$ 52.62	$ 39.21
Vesting based on total shareholder return [Member] | Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	57,230
Share-based compensation, percent of total sharehold return RSUs earned during the performance period	0.00%	76.81%	83.05%
Vesting based on total shareholder return [Member] | Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		52,679

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Fair Value Disclosures (Level 4 FV of Fin Instr) (Details) - Fair Value, Recurring [Member] - Level 2 [Member] - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018
Forward Contracts [Member] | Residential Mortgage [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Derivative Asset	$ 298	$ 1,750
Assets Held-for-sale [Member] | Residential Mortgage [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Loans Held-for-sale, Fair Value Disclosure	218,777	170,731
Interest Rate Lock Commitments [Member] | Forward Contracts [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Derivative Liability	(964)
Derivative Asset		4,366
Interest Rate Lock Commitments [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Derivative Liability		$ (4,366)
Derivative Asset	$ 964

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Loans Payable, Senior Notes, and Mortgage Company Loan Facility Senior Notes (Details 3) - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018	Jan. 31, 2018
Senior Notes [Abstract]
Senior notes	$ 2,659,898	$ 2,861,375
4.0% Senior Notes due 2018 [Member]
Senior Notes [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	4.00%		4.00%
Senior notes	$ 0	350,000
6.75% Senior Notes due 2019 [Member]
Senior Notes [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	6.75%
Senior notes	$ 0	250,000
5.875 % senior notes due 2022 [Member]
Senior Notes [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	5.875%
Senior notes	$ 419,876	419,876
4.375% Senior Notes due 2023 [Member]
Senior Notes [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	4.375%
Senior notes	$ 400,000	400,000
5.625% Senior notes due 2024 [Member]
Senior Notes [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	5.625%
Senior notes	$ 250,000	250,000
4.875% Senior Notes Due 2025 [Member]
Senior Notes [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	4.875%
Senior notes	$ 350,000	350,000
4.875% Senior Notes Due 2027 [Member]
Senior Notes [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	4.875%
Senior notes	$ 450,000	450,000
4.350% Senior Notes Due 2028 [Member]
Senior Notes [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	4.35%		4.35%
Senior notes	$ 400,000	400,000	$ 400,000
3.80% Senior Notes Due 2029 [Member]
Senior Notes [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	3.80%
Senior notes	$ 400,000	0
Senior Notes [Member]
Senior Notes [Abstract]
Deferred Finance Costs, Net	$ (9,978)	$ (8,501)

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Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Entity Information [Line Items]
Number of Operating Segments	2
Additional Significant Accounting Policies (Textual) [Abstract]
Number of geographic segments	5
Number of years to complete a community	4 years
Number of years to complete a master planned community	10 years
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 252.5	$ 145.0
Depreciation	67.6	21.0	$ 18.7
Advertising Expense	$ 38.5	$ 28.5	$ 26.1
warranty period, structural integrity	10 years
Construction defect claims, reported and resolved, period of time	10 years
More Likely Than Not Definition Threshold	50.00%

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Information on Segments (Tables)

12 Months Ended

Oct. 31, 2019

Segment Reporting [Abstract]

Revenue and income (loss) before income taxes and total assets [Table Text Block]

Total assets for each of our segments at October 31, 2019 and 2018, are shown in the table below (amounts in thousands):

	2019		2018
Traditional Home Building:
North	$	917,506	$	970,854
Mid-Atlantic	1,177,387		1,130,417
South	1,412,563		1,237,744
West	2,057,389		1,580,199
California	2,339,677		2,733,956
Traditional Home Building	7,904,522		7,653,170
City Living	529,507		516,238
Corporate and other	2,394,109		2,075,182
	$	10,828,138	$	10,244,590

“Corporate and other” is comprised principally of cash and cash equivalents, restricted cash, income tax receivable, investments in our Rental Property Joint Ventures, expected recoveries from insurance carriers and suppliers, our Gibraltar investments and operations, manufacturing facilities, and our mortgage and title subsidiaries.

The table below summarizes revenue and income (loss) before income taxes for our segments for each of the fiscal years ended October 31, 2019, 2018, and 2017 (amounts in thousands):

	Revenue							Income (loss) before income taxes
	2019			2018		2017		2019			2018			2017
Traditional Home Building:
North	$	923,299		$	975,648	$	775,540	$	55,897		$	56,530		$	50,393
Mid-Atlantic	1,112,817			1,141,130		1,030,269		64,739			90,573			105,740
South	1,244,571			1,045,395		923,953		117,533			110,304			112,809
West	1,418,041			1,451,353		1,151,697		170,389			213,269			153,188
California	2,129,461			2,208,733		1,550,494		452,350			494,247			345,138
Traditional Home Building	6,828,189			6,822,259		5,431,953		860,908			964,923			767,268
City Living	253,189			320,999		383,105		70,133			78,149			193,852
Corporate and other	(999		)					(143,871		)	(109,156		)	(146,809		)
Total home sales revenue	7,080,379			7,143,258		5,815,058		787,170			933,916			814,311
Land sales revenue	143,587			—		—
Total revenue	$	7,223,966		$	7,143,258	$	5,815,058	$	787,170		$	933,916		$	814,311

“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 our Rental Property Joint Ventures and Gibraltar Joint Ventures.

Schedule of inventory, by segment [Table Text Block]

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 October 31, 2019
Traditional Home Building:
North	$	24,575	$	64,129	$	764,015	$	852,719
Mid-Atlantic	53,375		96,634		964,188		1,114,197
South	15,622		134,697		1,056,384		1,206,703
West	25,340		34,165		1,924,387		1,983,892
California	64,017		353,186		1,842,935		2,260,138
Traditional Home Building	182,929		682,811		6,551,909		7,417,649
City Living			185,391		270,008		455,399
	$	182,929	$	868,202	$	6,821,917	$	7,873,048
Balances at October 31, 2018
Traditional Home Building:
North	$	17,414	$	99,383	$	803,692	$	920,489
Mid-Atlantic	48,553		123,218		906,990		1,078,761
South	12,305		95,309		957,321		1,064,935
West	22,905		109,671		1,419,989		1,552,565
California	32,441		391,221		2,146,370		2,570,032
Traditional Home Building	133,618		818,802		6,234,362		7,186,782
City Living	6,367		97,814		307,256		411,437
	$	139,985	$	916,616	$	6,541,618	$	7,598,219

Schedule of inventory impairments, by segment [Table Text Block]

The amounts we have provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable for each of our segments, for the years ended October 31, 2019, 2018, and 2017, are shown in the table below (amounts in thousands):

	2019		2018		2017
Traditional Home Building:
North	$	17,488	$	19,698	$	6,528
Mid-Atlantic	8,514		9,818		6,905
South	9,457		3,802		1,184
West	1,074		907		106
California	1,027		147		43
Traditional Home Building	37,560		34,372		14,766
City Living	4,800		15		28
Corporate and other			769
	$	42,360	$	35,156	$	14,794

Schedule of investments in unconsolidated entities and equity in earnings (losses) from unconsolidated entities, by segment [Table Text Block]

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

	Investments in unconsolidated entities				Equity in earnings (losses) from unconsolidated entities
	At October 31,				Year ended October 31,
	2019		2018		2019			2018			2017
Traditional Home Building:
Mid-Atlantic	$	8,525	$	7,823				$	(4,000	)	$	(2,000	)
South	91,956		84,610		19,098			$	12,263		$	9,185
West								(63		)	2,529
California	9,825		84,160		(37		)	2,404			7,509
Traditional Home Building	110,306		176,593		19,061			10,604			17,223
City Living	60,512		65,936		4,103			6,857			73,123
Corporate and other	195,434		189,284		1,704			67,779			25,720
	$	366,252	$	431,813	$	24,868		$	85,240		$	116,066

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

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Information on Segments (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Schedule of inventory impairments, by segment [Line Items]
Inventory Write-down	$ 42,360	$ 35,156	$ 14,794
North [Member]
Schedule of inventory impairments, by segment [Line Items]
Inventory Write-down	17,488	19,698	6,528
Mid-Atlantic [Member]
Schedule of inventory impairments, by segment [Line Items]
Inventory Write-down	8,514	9,818	6,905
South [Member]
Schedule of inventory impairments, by segment [Line Items]
Inventory Write-down	9,457	3,802	1,184
West [Member]
Schedule of inventory impairments, by segment [Line Items]
Inventory Write-down	1,074	907	106
California [Member]
Schedule of inventory impairments, by segment [Line Items]
Inventory Write-down	1,027	147	43
Traditional Homebuilding [Member]
Schedule of inventory impairments, by segment [Line Items]
Inventory Write-down	37,560	34,372	14,766
City Living [Member]
Schedule of inventory impairments, by segment [Line Items]
Inventory Write-down	4,800	15	28
Corporate and other [Member]
Schedule of inventory impairments, by segment [Line Items]
Inventory Write-down		$ 769

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Commitments and Contingencies

12 Months Ended

Oct. 31, 2019

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Proceedings

We are involved in various claims and litigation arising principally in the ordinary course of business. We believe that adequate provision for resolution of all current claims and pending litigation has been made and that the disposition of these matters will not have a material adverse effect on our results of operations and liquidity or on our financial condition.

In March 2018, the Pennsylvania Attorney General informed the Company that it was conducting a review of our construction of stucco homes in Pennsylvania after January 1, 2005 and requested that we voluntarily produce documents and information. The Company has produced documents and information in response to this request and, in addition, has produced requested information and documents in response to a subpoena issued in the second quarter of fiscal 2019. Management cannot at this time predict the eventual scope or outcome of this matter.

Land Purchase Commitments

Generally, our agreements to acquire land parcels do not require us to purchase those land parcels, although we, in some cases, forfeit any deposit balance outstanding if and when we terminate an agreement. If market conditions are weak, approvals needed to develop the land are uncertain, or other factors exist that make the purchase undesirable, we may choose not to acquire the land. Whether a purchase agreement is legally terminated or not, we review the amount recorded for the land parcel subject to the purchase agreement to determine whether the amount is recoverable. While we may not have formally terminated the purchase agreements for those land parcels that we do not expect to acquire, we write off any nonrefundable deposits and costs previously capitalized to such land parcels in the periods that we determine such costs are not recoverable.

Information regarding our land purchase commitments at October 31, 2019 and 2018, is provided in the table below (amounts in thousands):

	2019		2018
Aggregate purchase commitments:
Unrelated parties	$	2,349,900	$	2,404,660
Unconsolidated entities that the Company has investments in	10,826		128,235
Total	$	2,360,726	$	2,532,895
Deposits against aggregate purchase commitments	$	168,778	$	168,421
Credits to be received from unconsolidated entities			79,168
Additional cash required to acquire land	2,191,948		2,285,306
Total	$	2,360,726	$	2,532,895
Amount of additional cash required to acquire land included in accrued expenses	$	14,620	$	40,103

In addition, we expect to purchase approximately 2,500 additional home sites over a number of years from several joint ventures in which we have investments; the purchase prices of these home sites will be determined at a future date.

At October 31, 2019, we also had purchase commitments to acquire land for apartment developments of approximately $280.2 million, of which we had outstanding deposits in the amount of $13.7 million.

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.

Investments in Unconsolidated Entities

At October 31, 2019, we had investments in a number of unconsolidated entities, were committed to invest or advance additional funds, and had guaranteed a portion of the indebtedness and/or loan commitments of these entities. See Note 4, “Investments in Unconsolidated Entities,” for more information regarding our commitments to these entities.

Surety Bonds and Letters of Credit

At October 31, 2019, we had outstanding surety bonds amounting to $777.2 million, primarily related to our obligations to governmental entities to construct improvements in our communities. We estimate that $402.6 million of work remains on these improvements. We have an additional $179.7 million of surety bonds outstanding that guarantee other obligations. We do not believe it is probable that any outstanding bonds will be drawn upon.

At October 31, 2019, we had outstanding letters of credit of $177.9 million under our Revolving Credit Facility. These letters of credit were issued to secure our various financial obligations, including insurance policy deductibles and other claims, land deposits, and security to complete improvements in communities in which we are operating. We do not believe that it is probable that any outstanding letters of credit will be drawn upon.

Backlog

At October 31, 2019, we had agreements of sale outstanding to deliver 6,266 homes with an aggregate sales value of $5.26 billion.

Mortgage Commitments

Our mortgage subsidiary provides mortgage financing for a portion of our home closings. For those home buyers to whom our mortgage subsidiary provides mortgages, we determine whether the home buyer qualifies for the mortgage based upon information provided by the home buyer and other sources. For those home buyers who qualify, our mortgage subsidiary provides the home buyer with a mortgage commitment that specifies the terms and conditions of a proposed mortgage loan based upon then-current market conditions. Prior to the actual closing of the home and funding of the mortgage, the home buyer will lock in an interest rate based upon the terms of the commitment. At the time of rate lock, our mortgage subsidiary agrees to sell the proposed mortgage loan to one of several outside recognized mortgage financing institutions (“investors”) that is willing to honor the terms and conditions, including interest rate, committed to the home buyer. We believe that these investors have adequate financial resources to honor their commitments to our mortgage subsidiary.

Information regarding our mortgage commitments at October 31, 2019 and 2018, is provided in the table below (amounts in thousands):

	2019		2018
Aggregate mortgage loan commitments:
IRLCs	$	565,634	$	614,255
Non-IRLCs	1,364,972		1,329,674
Total	$	1,930,606	$	1,943,929
Investor commitments to purchase:
IRLCs	$	565,634	$	614,255
Mortgage loans receivable	208,591		163,208
Total	$	774,225	$	777,463

Lease Commitments

We lease certain facilities, equipment, and properties held for rental apartment operation or development under non-cancelable operating leases which, in the case of the rental properties, are 99-year leases. Rental expenses incurred by us under these operating leases were (amounts in thousands):

Year ending October 31,	Amount
2019	$	20,180
2018	$	15,783
2017	$	14,505

At October 31, 2019, future minimum rent payments under our operating leases were (amounts in thousands):

Year ending October 31,	Amount
2020	$	15,430
2021	12,576
2022	10,082
2023	7,800
2024	6,691
Thereafter	218,221
	$	270,800

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Commitments and Contingencies (Details Textual) $ in Thousands	Oct. 31, 2019 USD ($) home_sites	Oct. 31, 2018 USD ($)
Long-term Purchase Commitment [Line Items]
Purchase Obligation	$ 2,360,726	$ 2,532,895
Land for Apartment Development Purchase Commitment [Member]
Long-term Purchase Commitment [Line Items]
Purchase Obligation	280,200
Deposit Assets	$ 13,700
Commitment To Acquire Home Sites [Member] | Land Development Joint Ventures [Member]
Long-term Purchase Commitment [Line Items]
Unrecorded Unconditional Purchase Obligation, Maximum Quantity | home_sites	2,500

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Other income (Details 1) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017
Other Nonoperating Income By Component [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 2,455,238	$ 1,913,353	$ 1,599,199	$ 1,175,468	$ 7,223,966	$ 7,143,258	$ 5,815,058
Expense					5,808,618	5,673,007	4,562,303
Land sales earnings, net					$ 0	6,331	8,621
Land sales prior [Member]
Other Nonoperating Income By Component [Line Items]
Revenue from Contract with Customer, Including Assessed Tax						134,327	284,928
Expense						127,996	281,030
Home Building Joint Venture Metro New York Three [Member]
Other Nonoperating Income By Component [Line Items]
Deferred Revenue, Revenue Recognized							$ 4,723

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Supplemental Guarantor Information

12 Months Ended

Oct. 31, 2019

Supplemental Guarantor Information [Abstract]

Supplemental Guarantor Information [Text Block]

. Supplemental Guarantor Information

Our 100%-owned subsidiary, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), has issued the following Senior Notes (amounts in thousands):

	Original amount issued and amount outstanding at October 31, 2019
5.875% Senior Notes due February 15, 2022	$	419,876
4.375% Senior Notes due April 15, 2023	$	400,000
5.625% Senior Notes due January 15, 2024	$	250,000
4.875% Senior Notes due November 15, 2025	$	350,000
4.875% Senior Notes due March 15, 2027	$	450,000
4.350% Senior Notes due February 15, 2028	$	400,000
3.80% Senior Notes due November 1, 2029	$	400,000

The obligations of the Subsidiary Issuer to pay principal, premiums, if any, and interest are guaranteed jointly and severally on a senior basis by us and substantially all of our 100%-owned home building subsidiaries (the “Guarantor Subsidiaries”). The guarantees are full and unconditional. Our non-home building subsidiaries and several of our home building subsidiaries (together, the “Nonguarantor Subsidiaries”) do not guarantee the debt. The Subsidiary Issuer generates no operating revenues and does not have any independent operations other than the financing of our other subsidiaries by lending the proceeds from the above-described debt issuances. The indentures under which the Senior Notes were issued provide that any of our subsidiaries that provide a guarantee of the Revolving Credit Facility will guarantee the Senior Notes. The indentures further provide that any Guarantor Subsidiary may be released from its guarantee, so long as (1) no default or event of default exists or would result from release of such guarantee, (2) the Guarantor Subsidiary being released has consolidated net worth of less than 5% of our consolidated net worth as of the end of our most recent fiscal quarter, (3) the Guarantor Subsidiaries released from their guarantees in any fiscal year comprise in the aggregate less than 10% (or 15% if and to the extent necessary to permit the cure of a default) of our consolidated net worth as of the end of our most recent fiscal quarter, (4) such release would not have a material adverse effect on our and our subsidiaries home building business, and (5) the Guarantor Subsidiary is released from its guarantee under the Revolving Credit Facility. If there are no guarantors under the Revolving Credit Facility, all Guarantor Subsidiaries under the indentures will be released from their guarantees.

Separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management has determined that such disclosures would not be material to investors.

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

Consolidating Balance Sheet at October 31, 2019

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		1,082,067	203,947	—		1,286,014
Inventory					7,791,759	81,289			7,873,048
Property, construction, and office equipment, net					263,140	10,272			273,412
Receivables, prepaid expenses, and other assets					224,681	610,541	(119,781	)	715,441
Mortgage loans held for sale						218,777			218,777
Customer deposits held in escrow					74,303	100			74,403
Investments in unconsolidated entities					50,594	315,658			366,252
Investments in and advances to consolidated entities	5,172,737		2,704,551		163,371	147,413	(8,188,072	)	—
Income taxes receivable	20,791								20,791
	5,193,528		2,704,551		9,649,915	1,587,997	(8,307,853	)	10,828,138
LIABILITIES AND EQUITY
Liabilities
Loans payable					1,109,614	36,092	(34,257	)	1,111,449
Senior notes			2,659,898						2,659,898
Mortgage company loan facility						150,000			150,000
Customer deposits					383,583	2,013			385,596
Accounts payable					347,715	884			348,599
Accrued expenses	754		26,812		569,476	443,180	(89,290	)	950,932
Advances from consolidated entities					1,052,370	503,058	(1,555,428	)	—
Income taxes payable	102,971								102,971
Total liabilities	103,725		2,686,710		3,462,758	1,135,227	(1,678,975	)	5,709,445
Equity
Stockholders’ equity
Common stock	1,529				48	3,006	(3,054	)	1,529
Additional paid-in capital	726,879		49,400			177,034	(226,434	)	726,879
Retained earnings (deficit)	4,792,409		(31,559	)	6,187,109	225,853	(6,399,390	)	4,774,422
Treasury stock, at cost	(425,183	)							(425,183	)
Accumulated other comprehensive loss	(5,831	)							(5,831	)
Total stockholders’ equity	5,089,803		17,841		6,187,157	405,893	(6,628,878	)	5,071,816
Noncontrolling interest						46,877			46,877
Total equity	5,089,803		17,841		6,187,157	452,770	(6,628,878	)	5,118,693
	5,193,528		2,704,551		9,649,915	1,587,997	(8,307,853	)	10,828,138

Consolidating Balance Sheet at October 31, 2018

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		1,011,863	170,332	—		1,182,195
Inventory					7,493,205	105,014			7,598,219
Property, construction, and office equipment, net					169,265	24,016			193,281
Receivables, prepaid expenses, and other assets					291,299	392,559	(133,080	)	550,778
Mortgage loans held for sale						170,731			170,731
Customer deposits held in escrow					116,332	1,241			117,573
Investments in unconsolidated entities					44,329	387,484			431,813
Investments in and advances to consolidated entities	4,791,629		2,916,557		91,740	126,872	(7,926,798	)	—
	4,791,629		2,916,557		9,218,033	1,378,249	(8,059,878	)	10,244,590
LIABILITIES AND EQUITY
Liabilities
Loans payable					686,801				686,801
Senior notes			2,861,375						2,861,375
Mortgage company loan facility						150,000			150,000
Customer deposits					405,318	5,546			410,864
Accounts payable					361,655	443			362,098
Accrued expenses	471		37,341		600,907	462,128	(127,266	)	973,581
Advances from consolidated entities					1,551,196	476,040	(2,027,236	)	—
Income taxes payable	30,959								30,959
Total liabilities	31,430		2,898,716		3,605,877	1,094,157	(2,154,502	)	5,475,678
Equity
Stockholders’ equity
Common stock	1,779				48	3,006	(3,054	)	1,779
Additional paid-in capital	727,053		49,400			93,734	(143,134	)	727,053
Retained earnings (deficit)	5,161,551		(31,559	)	5,612,108	178,639	(5,759,188	)	5,161,551
Treasury stock, at cost	(1,130,878	)							(1,130,878	)
Accumulated other comprehensive loss	694								694
Total stockholders’ equity	4,760,199		17,841		5,612,156	275,379	(5,905,376	)	4,760,199
Noncontrolling interest						8,713			8,713
Total equity	4,760,199		17,841		5,612,156	284,092	(5,905,376	)	4,768,912
	4,791,629		2,916,557		9,218,033	1,378,249	(8,059,878	)	10,244,590

Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2019

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues:
Home sales					6,980,549		99,830				7,080,379
Land sales and other					112,972		260,843		(230,228	)	143,587
	—		—		7,093,521		360,673		(230,228	)	7,223,966
Cost of revenues:
Home sales					5,595,685		79,400		3,829		5,678,914
Land sales and other					59,338		180,162		(109,796	)	129,704
	—		—		5,655,023		259,562		(105,967	)	5,808,618
Selling, general and administrative	542		2,715		775,030		75,905		(119,644	)	734,548
Income (loss) from operations	(542	)	(2,715	)	663,468		25,206		(4,617	)	680,800
Other:
Income from unconsolidated entities					12,930		11,938				24,868
Other income - net					48,052		26,352		7,098		81,502
Intercompany interest income			135,087		2,616		5,781		(143,484	)	—
Interest expense			(132,372	)	(5,781	)	(2,850	)	141,003		—
Income from consolidated subsidiaries	787,712				66,427				(854,139	)	—
Income (loss) before income taxes	787,170		—		787,712		66,427		(854,139	)	787,170
Income tax provision (benefit)	197,163				197,298		16,637		(213,935	)	197,163
Net income (loss)	590,007		—		590,414		49,790		(640,204	)	590,007
Other comprehensive income	(6,525	)									(6,525	)
Total comprehensive income (loss)	583,482		—		590,414		49,790		(640,204	)	583,482

Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2018

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					6,899,891		453,073		(209,706	)	7,143,258
Cost of revenues					5,427,753		303,962		(58,708	)	5,673,007
Selling, general and administrative	77		3,162		709,265		83,003		(111,472	)	684,035
	77		3,162		6,137,018		386,965		(170,180	)	6,357,042
Income (loss) from operations	(77	)	(3,162	)	762,873		66,108		(39,526	)	786,216
Other:
Income from unconsolidated entities					44,646		40,594				85,240
Other income - net					30,561		(2,950	)	34,849		62,460
Intercompany interest income			142,084		1,649		4,422		(148,155	)	—
Interest expense			(138,922	)	(4,422	)	(2,111	)	145,455		—
Income from consolidated subsidiaries	933,993				106,063				(1,040,056	)	—
Income (loss) before income taxes	933,916		—		941,370		106,063		(1,047,433	)	933,916
Income tax provision (benefit)	185,765				187,248		21,097		(208,345	)	185,765
Net income (loss)	748,151		—		754,122		84,966		(839,088	)	748,151
Other comprehensive income	2,926										2,926
Total comprehensive income (loss)	751,077		—		754,122		84,966		(839,088	)	751,077

Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2017

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					5,668,610		336,671		(190,223	)	5,815,058
Cost of revenues					4,414,461		223,243		(75,401	)	4,562,303
Selling, general and administrative	58		4,033		633,000		77,115		(108,634	)	605,572
	58		4,033		5,047,461		300,358		(184,035	)	5,167,875
Income (loss) from operations	(58	)	(4,033	)	621,149		36,313		(6,188	)	647,183
Other:
Income from unconsolidated entities					12,271		103,795				116,066
Other income - net	10,574				26,653		10,674		3,161		51,062
Intercompany interest income			156,366		48		4,365		(160,779	)	—
Interest expense			(162,882	)	(4,365	)	(1,819	)	169,066		—
Income from consolidated subsidiaries	803,795				142,779				(946,574	)	—
Income (loss) before income taxes	814,311		(10,549	)	798,535		153,328		(941,314	)	814,311
Income tax provision (benefit)	278,816		(3,612	)	273,418		52,500		(322,306	)	278,816
Net income (loss)	535,495		(6,937	)	525,117		100,828		(619,008	)	535,495
Other comprehensive income	1,426										1,426
Total comprehensive income (loss)	536,921		(6,937	)	525,117		100,828		(619,008	)	536,921

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2019

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	76,828		(8,413	)	559,660		(180,837	)	(9,577	)	437,661
Cash flow provided by (used in) investing activities:
Purchase of property and equipment — net					(86,936	)	(35	)			(86,971	)
Investment in unconsolidated entities					(11,202	)	(45,358	)			(56,560	)
Return of investments in unconsolidated entities					3,304		144,623				147,927
Investment in distressed loans and foreclosed real estate							(731	)			(731	)
Return of investments in distressed loans and foreclosed real estate							3,147				3,147
Proceeds from sales of golf club properties and an office building					58,154		21,493				79,647
Acquisitions of businesses					(162,373	)					(162,373	)
Investment paid intercompany					(71,631	)			71,631		—
Intercompany advances	202,967		212,005						(414,972	)	—
Net cash provided by (used in) investing activities	202,967		212,005		(270,684	)	123,139		(343,341	)	(75,914	)
Cash flow (used in) provided by financing activities:
Proceeds from issuance of senior notes			400,000								400,000
Proceeds from loans payable					300,000		2,399,028				2,699,028
Debt issuance costs			(3,592	)	(2,588	)					(6,180	)
Principal payments of loans payable					(72,588	)	(2,399,028	)			(2,471,616	)
Redemption of senior notes			(600,000	)							(600,000	)
Proceeds from stock-based benefit plans	17,369										17,369
Purchase of treasury stock	(233,523	)									(233,523	)
Dividends paid	(63,641	)									(63,641	)
Receipts related to noncontrolling interest							49				49
Investment received intercompany							71,628		(71,628	)	—
Intercompany advances					(443,577	)	19,031		424,546		—
Net cash (used in) provided by financing activities	(279,795	)	(203,592	)	(218,753	)	90,708		352,918		(258,514	)
Net increase in cash, cash equivalents, and restricted cash	—		—		70,223		33,010		—		103,233
Cash, cash equivalents, and restricted cash, beginning of period	—		—		1,011,867		204,543		—		1,216,410
Cash, cash equivalents, and restricted cash, end of period	—		—		1,082,090		237,553		—		1,319,643

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2018

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	(4,270	)	5,439		521,640		56,301		9,101		588,211
Cash flow provided by (used in) investing activities:
Purchase of property and equipment — net					(28,064	)	(168	)			(28,232	)
Investment in unconsolidated entities					(1,676	)	(25,815	)			(27,491	)
Return of investments in unconsolidated entities					29,242		103,948				133,190
Investment in distressed loans and foreclosed real estate							(966	)			(966	)
Return of investments in distressed loans and foreclosed real estate							4,765				4,765
Intercompany advances	555,741		(401,908	)					(153,833	)	—
Net cash provided by (used in) investing activities	555,741		(401,908	)	(498	)	81,764		(153,833	)	81,266
Cash flow (used in) provided by financing activities:
Proceeds from issuance of senior notes			400,000								400,000
Proceeds from loans payable					590,000		2,040,835				2,630,835
Debt issuance costs			(3,531	)							(3,531	)
Principal payments of loans payable					(679,184	)	(2,010,980	)			(2,690,164	)
Proceeds from stock-based benefit plans	13,392										13,392
Purchase of treasury stock	(503,159	)									(503,159	)
Payments related to noncontrolling interest							30				30
Dividends paid intercompany							(6,000	)	6,000		—
Dividends paid	(61,704	)									(61,704	)
Intercompany advances					45,205		(183,937	)	138,732		—
Net cash (used in) provided by financing activities	(551,471	)	396,469		(43,979	)	(160,052	)	144,732		(214,301	)
Net increase (decrease) in cash, cash equivalents, and restricted cash	—		—		477,163		(21,987	)	—		455,176
Cash, cash equivalents, and restricted cash, beginning of period	—		—		534,704		226,530		—		761,234
Cash, cash equivalents, and restricted cash, end of period	—		—		1,011,867		204,543		—		1,216,410

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2017

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	200,721		9,955		294,302		366,144		(9,424	)	861,698
Cash flow (used in) provided by investing activities:
Purchase of property and equipment — net					(20,439	)	(8,433	)			(28,872	)
Sale and redemption of marketable securities and restricted investments - net	10,631						7,418				18,049
Investment in unconsolidated entities					(3,744	)	(118,590	)			(122,334	)
Return of investments in unconsolidated entities					58,610		136,895				195,505
Investment in distressed loans and foreclosed real estate							(710	)			(710	)
Return of investments in distressed loans and foreclosed real estate							13,765				13,765
Acquisition of a business					(83,088	)					(83,088	)
Investment paid intercompany					(45,000	)			45,000		—
Intercompany advances	51,071		226,511						(277,582	)	—
Net cash (used in) provided by investing activities	61,702		226,511		(93,661	)	30,345		(232,582	)	(7,685	)
Cash flow (used in) provided by financing activities:
Net proceeds from issuance of senior notes			455,483								455,483
Proceeds from loans payable					250,068		1,370,975				1,621,043
Debt issuance costs			(4,449	)							(4,449	)
Principal payments of loans payable					(538,527	)	(1,460,830	)			(1,999,357	)
Redemption of senior notes			(687,500	)							(687,500	)
Proceeds from stock-based benefit plans	66,000										66,000
Purchase of treasury stock	(290,881	)									(290,881	)
Dividends paid	(38,587	)									(38,587	)
Investment received intercompany							45,000		(45,000	)	—
Intercompany advances					39,082		(326,088	)	287,006		—
Net cash (used in) provided by financing activities	(263,468	)	(236,466	)	(249,377	)	(370,943	)	242,006		(878,248	)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(1,045	)	—		(48,736	)	25,546		—		(24,235	)
Cash, cash equivalents, and restricted cash, beginning of period	1,045		—		583,440		200,984		—		785,469
Cash, cash equivalents, and restricted cash, end of period	—		—		534,704		226,530		—		761,234

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