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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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