Supplemental Guarantor Information (Tables)

9 Months Ended

Jul. 31, 2020

Supplemental Guarantor Information [Abstract]

Senior Notes issued by Subsidiary Issuer [Table Text Block]

At July 31, 2020, our 100%-owned subsidiary, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), has issued the following outstanding senior notes (amounts in thousands):

	Original amount issued and amount outstanding
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).

Condensed Consolidating Balance Sheet at July 31, 2020:

	Toll Brothers, Inc.	Subsidiary Issuer	Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations	Consolidated
ASSETS
Cash and cash equivalents	—	—	434,550	124,798	—	559,348
Inventory			7,941,516	92,999		8,034,515
Property, construction and office equipment, net			311,670	1,843		313,513
Receivables, prepaid expenses and other assets	5,412		266,760	776,158	(79,914)	968,416
Mortgage loans held for sale, at fair value				161,540		161,540
Customer deposits held in escrow			77,678	416		78,094
Investments in unconsolidated entities			44,524	368,242		412,766
Investments in and advances to consolidated entities	4,803,019	2,719,647	185,516	206,698	(7,914,880)	—
Income taxes receivable	9,239					9,239
	4,817,670	2,719,647	9,262,214	1,732,694	(7,994,794)	10,537,431
LIABILITIES AND EQUITY
Liabilities
Loans payable			1,082,262	34,020	(34,257)	1,082,025
Senior notes		2,661,301				2,661,301
Mortgage company loan facility				122,189		122,189
Customer deposits			435,281	1,727		437,008
Accounts payable			375,859	41		375,900
Accrued expenses	6,551	40,505	600,656	417,937	(50,827)	1,014,822
Advances from consolidated entities			328,899	666,132	(995,031)	—
Income taxes payable	118,058					118,058
Total liabilities	124,609	2,701,806	2,822,957	1,242,046	(1,080,115)	5,811,303
Equity
Stockholders’ equity
Common stock	1,529		48	3,006	(3,054)	1,529
Additional paid-in capital	722,115	49,400		199,034	(248,434)	722,115
Retained earnings (deficit)	4,996,819	(31,559)	6,439,209	237,554	(6,663,191)	4,978,832
Treasury stock, at cost	(1,022,406)					(1,022,406)
Accumulated other comprehensive loss	(4,996)					(4,996)
Total stockholders’ equity	4,693,061	17,841	6,439,257	439,594	(6,914,679)	4,675,074
Noncontrolling interest				51,054		51,054
Total equity	4,693,061	17,841	6,439,257	490,648	(6,914,679)	4,726,128
	4,817,670	2,719,647	9,262,214	1,732,694	(7,994,794)	10,537,431

Condensed 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, at fair value				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

Condensed Consolidating Statement of Operations and Comprehensive Income for the nine months ended July 31, 2020:

	Toll Brothers, Inc.	Subsidiary Issuer	Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations	Consolidated
Revenues:
Home sales			4,415,086	26,297		4,441,383
Land sales and other			68,142	159,691	(137,224)	90,609
	—	—	4,483,228	185,988	(137,224)	4,531,992
Cost of revenues:
Home sales			3,613,839	20,717	(5,031)	3,629,525
Land sales and other			43,303	97,368	(59,712)	80,959
	—	—	3,657,142	118,085	(64,743)	3,710,484
Selling, general and administrative	200	53	554,591	45,828	(68,853)	531,819
Income (loss) from operations	(200)	(53)	271,495	22,075	(3,628)	289,689
Other:
Income (loss) from unconsolidated entities			14,589	(9,285)		5,304
Other income – net			16,719	11,158	(2,960)	24,917
Intercompany interest income		98,080	4,539	4,020	(106,639)	—
Interest expense		(98,027)	(4,129)	(5,071)	107,227	—
Income from subsidiaries	320,111		22,898		(343,009)	—
Income before income taxes	319,911	—	326,111	22,897	(349,009)	319,910
Income tax provision	72,603		74,010	5,197	(79,207)	72,603
Net income	247,308	—	252,101	17,700	(269,802)	247,307
Other comprehensive income, net of tax	835					835
Total comprehensive income	248,143	—	252,101	17,700	(269,802)	248,142

Condensed Consolidating Statement of Operations and Comprehensive Income for the nine months ended July 31, 2019:

	Toll Brothers, Inc.	Subsidiary Issuer	Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations	Consolidated
Revenues:
Home sales			4,707,462	80,873		4,788,335
Land sales and other			52,712	144,913	(140,994)	56,631
	—	—	4,760,174	225,786	(140,994)	4,844,966
Cost of revenues:
Home sales			3,753,209	64,397	741	3,818,347
Land sales and other			14,935	79,406	(50,935)	43,406
	—	—	3,768,144	143,803	(50,194)	3,861,753
Selling, general and administrative	491	2,022	552,772	55,346	(83,313)	527,318
Income (loss) from operations	(491)	(2,022)	439,258	26,637	(7,487)	455,895
Other:
Income from unconsolidated entities			8,786	8,973		17,759
Other income – net			15,986	15,521	9,360	40,867
Intercompany interest income		99,853	1,752	4,782	(106,387)	—
Interest expense		(97,831)	(4,782)	(1,901)	104,514	—
Income from subsidiaries	515,012		54,012		(569,024)	—
Income before income taxes	514,521	—	515,012	54,012	(569,024)	514,521
Income tax provision	126,829		126,951	13,313	(140,264)	126,829
Net income	387,692	—	388,061	40,699	(428,760)	387,692
Other comprehensive income, net of tax	168					168
Total comprehensive income	387,860	—	388,061	40,699	(428,760)	387,860

Condensed Consolidating Statement of Operations and Comprehensive Income for the three months ended July 31, 2020:

	Toll Brothers, Inc.	Subsidiary Issuer	Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations	Consolidated
Revenues:
Home sales			1,616,151	11,661		1,627,812
Land sales and other			24,178	46,762	(47,263)	23,677
	—	—	1,640,329	58,423	(47,263)	1,651,489
Cost of revenues:
Home sales			1,311,978	9,431	(2,473)	1,318,936
Land sales and other			17,173	26,281	(21,195)	22,259
	—	—	1,329,151	35,712	(23,668)	1,341,195
Selling, general and administrative	100	17	169,550	12,837	(21,855)	160,649
Income (loss) from operations	(100)	(17)	141,628	9,874	(1,740)	149,645
Other:
(Loss) income from unconsolidated entities			(126)	(2,440)		(2,566)
Other income – net			2,651	682	1,453	4,786
Intercompany interest income		32,438	1,609	1,218	(35,265)	—
Interest expense		(32,421)	(1,327)	(1,805)	35,553	—
Income from subsidiaries	151,965		7,529		(159,494)	—
Income before income taxes	151,865	—	151,964	7,529	(159,493)	151,865
Income tax provision	37,104		37,222	1,951	(39,173)	37,104
Net income	114,761	—	114,742	5,578	(120,320)	114,761
Other comprehensive income, net of tax	279					279
Total comprehensive income	115,040	—	114,742	5,578	(120,320)	115,040

Condensed Consolidating Statement of Operations and Comprehensive Income for the three months ended July 31, 2019:

	Toll Brothers, Inc.	Subsidiary Issuer	Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations	Consolidated
Revenues:
Home sales			1,740,111	16,859		1,756,970
Land sales and other			21,919	37,269	(50,467)	8,721
	—	—	1,762,030	54,128	(50,467)	1,765,691
Cost of revenues:
Home sales			1,387,423	13,432	900	1,401,755
Land sales and other			6,956	16,605	(17,329)	6,232
	—	—	1,394,379	30,037	(16,429)	1,407,987
Selling, general and administrative		627	197,722	19,251	(30,891)	186,709
Income (loss) from operations	—	(627)	169,929	4,840	(3,147)	170,995
Other:
Income from unconsolidated entities			245	6,955		7,200
Other income - net			3,731	1,271	3,719	8,721
Intercompany interest income		32,849	882	1,802	(35,533)	—
Interest expense		(32,222)	(1,802)	(937)	34,961	—
Income from consolidated subsidiaries	186,916		13,931		(200,847)	—
Income before income taxes	186,916	—	186,916	13,931	(200,847)	186,916
Income tax provision	40,598		40,596	2,764	(43,360)	40,598
Net income	146,318	—	146,320	11,167	(157,487)	146,318
Other comprehensive income, net of tax	56					56
Total comprehensive income	146,374	—	146,320	11,167	(157,487)	146,374

Condensed Consolidating Statement of Cash Flows for the nine months ended July 31, 2020:

	Toll Brothers, Inc.	Subsidiary Issuer	Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations	Consolidated
Net cash provided by (used in) operating activities	44,865	15,106	267,618	(177,176)	(8,818)	141,595
Cash flow (used in) provided by investing activities:
Purchase of property, construction, and office equipment - net			(74,769)	(232)		(75,001)
Investments in unconsolidated entities			(697)	(46,613)		(47,310)
Return of investments in unconsolidated entities			9,507	33,132		42,639
Investment in foreclosed real estate and distressed loans				(866)		(866)
Return of investments in foreclosed real estate and distressed loans				1,751		1,751
Acquisition of a business			(60,349)			(60,349)
Proceeds from the sale of golf club properties and an office building				15,617		15,617
Investment paid - intercompany			(85,631)		85,631	—
Intercompany advances	620,406	(15,106)			(605,300)	—
Net cash (used in) provided by investing activities	620,406	(15,106)	(211,939)	2,789	(519,669)	(123,519)
Cash flow (used in) provided by financing activities:
Proceeds from loans payable			1,424,770	1,825,240		3,250,010
Principal payments of loans payable			(1,479,520)	(1,854,911)		(3,334,431)
Proceeds from stock-based benefit plans, net	11,252					11,252
Purchase of treasury stock	(633,873)					(633,873)
Dividends paid	(42,650)					(42,650)
Payments related to noncontrolling interest, net				(1,935)		(1,935)
Dividend paid - intercompany				(6,000)	6,000	—
Investment received - intercompany				85,628	(85,628)	—
Intercompany advances			(648,276)	40,161	608,115	—
Net cash (used in) provided by financing activities	(665,271)	—	(703,026)	88,183	528,487	(751,627)
Net decrease in cash, cash equivalents, and restricted cash	—	—	(647,347)	(86,204)	—	(733,551)
Cash, cash equivalents, and restricted cash, beginning of period	—	—	1,082,090	237,553	—	1,319,643
Cash, cash equivalents, and restricted cash, end of period	—	—	434,743	151,349	—	586,092

Condensed Consolidating Statement of Cash Flows for the nine months ended July 31, 2019:

	Toll Brothers, Inc.	Subsidiary Issuer	Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations	Consolidated
Net cash provided by (used in) operating activities	39,943	5,214	197,142	(213,999)	(5,839)	22,461
Cash flow (used in) provided by investing activities:
Purchase of property, construction, and office equipment - net			(61,847)	569		(61,278)
Investments in unconsolidated entities			(3,256)	(40,004)		(43,260)
Return of investments in unconsolidated entities			1,350	111,023		112,373
Investment in foreclosed real estate and distressed loans				(602)		(602)
Return of investments in foreclosed real estate and distressed loans				1,649		1,649
Business acquisitions			(92,840)			(92,840)
Investment paid - intercompany			(71,628)		71,628	—
Proceeds from the sale of a golf club property			15,319	18,220		33,539
Intercompany advances	170,230	344,786			(515,016)	—
Net cash (used in) provided by investing activities	170,230	344,786	(212,902)	90,855	(443,388)	(50,419)
Cash flow (used in) provided by financing activities:
Proceeds from loans payable			300,000	1,640,998		1,940,998
Debt issuance costs			(1,948)			(1,948)
Principal payments of loans payable			(55,829)	(1,640,998)		(1,696,827)
Redemption of senior notes		(350,000)				(350,000)
Proceeds from stock-based benefit plans, net	5,441					5,441
Purchase of treasury stock	(167,474)					(167,474)
Dividends paid	(48,140)					(48,140)
Receipts related to noncontrolling interest, net				49		49
Investment received - intercompany				71,628	(71,628)	—
Intercompany advances			(598,468)	77,613	520,855	—
Net cash (used in) provided by financing activities	(210,173)	(350,000)	(356,245)	149,290	449,227	(317,901)
Net (decrease) increase in cash, cash equivalents, and restricted cash	—	—	(372,005)	26,146	—	(345,859)
Cash, cash equivalents, and restricted cash, beginning of period	—	—	1,011,867	171,072	—	1,182,939
Cash, cash equivalents, and restricted cash, end of period	—	—	639,862	197,218	—	837,080