8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): December 6, 2007

Toll Brothers, Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware	001-09186	23-2416878
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

250 Gibraltar Road, Horsham, PA	19044
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (215) 938-8000

(Former Name or Former Address, if Changed Since Last Report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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TABLE OF CONTENTS

	ITEM 2.02.     RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
	ITEM 9.01.     FINANCIAL STATEMENTS AND EXHIBITS
SIGNATURES
PRESS RELEASE

ITEM 2.02.     RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

     On December 6, 2007, Toll Brothers, Inc. issued a press release which contained Toll Brothers, Inc.’s results of operations for its three-month and twelve-month periods ended October 31, 2007, a copy of which release is attached hereto as Exhibit 99.1 to this report.

     The information hereunder shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ITEM 9.01.     FINANCIAL STATEMENTS AND EXHIBITS

     (c). Exhibits.

     The following Exhibit is furnished as part of this Current Report on Form 8-K:

Exhibit
No.	Item
99.1*	Press release of Toll Brothers, Inc. dated December 6, 2007 announcing its financial results for the three-month and twelve- month periods ended October 31, 2007.

* Filed electronically herewith.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

	TOLL BROTHERS, INC.
Dated: December 6, 2007	By:	Joseph R. Sicree
		Joseph R. Sicree
		Senior Vice President, Chief Accounting Officer

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EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE	CONTACT: Frederick N. Cooper (215) 938-8312
December 6, 2007	fcooper@tollbrothersinc.com
	Joseph R. Sicree (215) 938-8045
	jsicree@tollbrothersinc.com

TOLL BROTHERS REPORTS 4TH QTR AND FY 2007 RESULTS

Horsham, PA, December 6, 2007 — Toll Brothers, Inc. (NYSE:TOL) (www.tollbrothers.com), the nation’s leading builder of luxury homes, today reported final results for its fourth quarter and fiscal year ended October 31, 2007.

In FY 2007’s fourth quarter, the Company generated a net loss of $81.8 million, or $0.52 per share diluted, compared to FY 2006’s fourth-quarter net income of $173.8 million, or $1.07 per share diluted. FY 2007’s fourth-quarter net loss included $314.9 million of pre-tax write-downs ($200.0 million, or $1.22 per share diluted, after-tax). Total pre-tax write-downs for both the fourth quarter and FY 2007 included $59.2 million of write-downs related to joint ventures. In FY 2006, fourth-quarter pre-tax write-downs totaled $115.0 million ($68.7 million, or $0.42 per share diluted, after-tax). Excluding write-downs, FY 2007’s fourth-quarter earnings were $0.72 per share diluted, compared to $1.49 per share diluted in FY 2006’s fourth quarter.

FY 2007’s full year net income was $35.7 million, or $0.22 per share diluted, compared to FY 2006’s same period results of $687.2 million, or $4.17 per share diluted. In FY 2007, twelve-month net income was reduced by write-downs and a first-quarter goodwill impairment charge which, combined, totaled $687.7 million pre-tax ($428.9 million, or $2.61 per share diluted, after-tax). In FY 2006, twelve-month net income was reduced by $152.0 million of pre-tax write-downs ($92.7 million, or $0.56 per share diluted, after-tax). Excluding write-downs and the goodwill impairment charge, FY 2007’s twelve-month earnings were $2.83 per share diluted, compared to $4.73 per share diluted in FY 2006’s twelve-month period.

The Company’s Stockholders’ Equity at FYE 2007 was $3.53 billion, compared to $3.42 billion at FYE 2006.

FY 2007’s fourth-quarter total revenues were $1.17 billion, compared to FY 2006’s fourth-quarter total revenues of $1.81 billion. FY 2007’s twelve-month total revenues were $4.65 billion, compared to the twelve-month record of $6.12 billion in FY 2006. FY 2007’s year-end backlog was $2.85 billion, compared to FY 2006’s year-end backlog of $4.49 billion.

FY 2007’s fourth-quarter net signed contracts were $365.3 million, compared to FY 2006’s fourth-quarter total of $706.3 million. FY 2007’s twelve-month net contracts were $3.01 billion, compared to FY 2006’s twelve-month total of $4.46 billion. In FY 2007’s fourth quarter, the Company signed 1,073 gross contracts (before cancellations), a 33% decline from the 1,595 signed in FY 2006’s fourth quarter. Net of cancellations, fourth-quarter contracts totaled 656 units, down 35% from 1,010 units in the fourth quarter of FY 2006. Fourth-quarter FY 2007 cancellations totaled 417 units, versus 585 units in fourth-quarter FY 2006; FY 2007’s fourth-quarter cancellations were

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38.9% of current-quarter contracts and 8.3% of beginning-quarter backlog, compared to 36.7% and 7.3%, respectively, in the fourth quarter of FY 2006.

The Company ended its FY 2007 fourth quarter with $900 million in cash and more than $1.2 billion available under its bank credit facility, which matures in 2011. Its net debt-to-capital ratio ⁽¹⁾ at October 31, 2007 stood at 26.8%, its lowest level ever, compared to 31.8% one year ago. The Company, which has continued to renegotiate, and in some cases, reduce its optioned land positions, ended FY 2007’s fourth quarter with approximately 59,300 lots owned and optioned, compared to approximately 91,200 at its peak at the second-quarter-end of FY 2006. The Company ended the fourth quarter with 315 selling communities, down from the peak of 325 at second-quarter-end, and expects to be selling from approximately 300 communities by Fiscal Year End 2008.

Robert I. Toll, chairman and chief executive officer, stated: “By many measures, Fiscal 2007 was the most challenging of the forty years that Toll Brothers has been in business. 1974 was perhaps rougher, but the difficult times only lasted one year. Confronted with this extremely difficult environment, our team still produced revenues of $4.6 billion and net income of $35.7 million, which was our twenty-second consecutive year of profitability. Stockholders’ Equity grew to $3.53 billion at FYE 2007. However, since going public in 1986, we’ve reported our first quarterly loss after 85 consecutive profitable quarters. The loss was driven by $315 million of (non-cash) pre-tax inventory-related impairments and related write-downs, which resulted in a fourth quarter net loss of $0.52 per share. Before write-downs, fourth quarter net income was a positive $118 million, or $0.72 per share; however the fact that we took such substantial write-downs this quarter, on top of the nearly $488 million of pre-tax inventory-related write-downs in the previous four quarters, reflects the market’s continued weakness.”

Joel H. Rassman, chief financial officer, stated: “With FY 2007 contracts of $3.01 billion and a year-end backlog of $2.85 billion, down 33% and 36%, respectively from one year ago, we expect that revenues in FY 2008 will be below those of FY 2007. Given the numerous uncertainties related to sales paces, sales prices, mortgage markets, cancellations, market direction and the potential for and size of future impairments, in the current climate it is particularly difficult to provide guidance for FY 2008. As a result, we will not provide earnings guidance at this time. However, subject to the caveats above, we offer the guidance that follows. We currently estimate that we will deliver between 3,900 and 5,100 homes in FY 2008 at an average delivered price of between $630,000 and $650,000 per home. We believe that, as a result of continuing incentives and slower sales per community, our cost of sales as a percent of revenues, before taking into account write-downs, will be higher in FY 2008 than in FY 2007. Additionally, based on FY 2008’s lower projected revenues, our SG&A, which we expect to be lower in absolute terms in FY 2008 than in FY 2007, will likely be higher as a percentage of revenues.”

Robert I. Toll continued: “We believe that motivated sellers, excess supply, and low interest rates make now an attractive time to buy a home, but weak consumer confidence continues to buck these positives. Broader concerns about the nation’s economy have magnified worries about potential price declines in the housing market.

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“It’s not a matter of if, but a matter of when, this oversupply is absorbed. Then we shall return to better times. I believe those who wanted to buy but didn’t will kick themselves for their reticence, but the biggest hurdle for our clients right now is their concern about their ability to sell their old homes. An inability to obtain mortgages does not appear to be a problem for our buyers, but probably is a problem for our buyers’ buyers.

“Having navigated through previous downturns, we focus on ensuring ourselves adequate financial liquidity. At FYE 2007 we had about $1.2 billion available and unused under our bank credit facility, which expires in March 2011. This, combined with our $900 million in cash, gave us approximately $2.1 billion of available liquidity. In addition, we have no maturities on our $1.5 billion of outstanding public debt until 2011 and its average maturity is over 5.6 years. We have also strategically trimmed our land position by 35% in the past eighteen months.

“We also have streamlined our staffing operation to better match our reduced production. Unfortunately, we’ve had experience at this, having worked through the major downturns of 1974, 1980 and 1988.

“We have been devoting significant time and resources to identifying opportunities that may arise from the difficulties in the market. We have maintained active deal teams in most of our regions and have established and are constantly refreshing our network of relationships.

“This downturn may be our toughest test yet, but I believe our great team is up to the challenge. We still believe the demographics exist to hugely support the housing market. Pent-up demand has to be building. Immigration is at record levels and large amounts of wealth have been created. With interest rates still quite low and very few new lots moving through the approval process, as soon as we remove the fear of dropping home prices, we may witness a faster and stronger recovery than anticipated.”

Toll Brothers’ financial highlights for the fourth-quarter and fiscal year ended October 31, 2007 (unaudited):

• FY 2007’s fourth-quarter net loss was $81.8 million, or $0.52 per share diluted, compared to FY 2006’s fourth-quarter net income of $173.8 million, or $1.07 per share diluted. In FY 2007, fourth-quarter net loss included pre-tax write-downs of $314.9 million, or $1.22 per share diluted. $242.9 million of the write-downs were attributable to operating communities and owned land, $59.2 million was attributable to unconsolidated entities in which the Company has an investment, and $12.8 million was attributable to optioned land. In FY 2006, fourth-quarter pre-tax write-downs totaled $115.0 million. FY 2007 fourth-quarter earnings per share, excluding write-downs, were $0.72 per share diluted, down 52% versus FY 2006 earnings, excluding write-downs.

• FY 2007’s twelve-month net income was $35.7 million, or $0.22 per share diluted, compared to FY 2006’s twelve-month net income of $687.2 million, or $4.17 per share diluted. In FY 2007, twelve-month net income included pre-tax write-downs and a goodwill impairment charge totaling $687.7 million, or $2.61 per share diluted. $581.6 million of the write-downs was attributable to operating communities and owned land, $59.2 million was attributable to unconsolidated entities in which the Company has an

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• investment, and $37.9 million was attributable to optioned land. In FY 2006, twelve-month pre-tax write-downs totaled $152.0 million. FY 2007 twelve-month earnings per share, including write-downs, declined 95% versus FY 2006; excluding write-downs and the impairment charge, earnings were $2.83 per share diluted, down 40% versus FY 2006’s earnings, excluding write-downs.

• The Company’s Shareholders’ Equity at FYE 2007 rose 3% to $3.53 billion compared to $3.42 billion at FYE 2006.

• FY 2007’s fourth-quarter total revenues of $1.17 billion decreased 35% from FY 2006’s fourth-quarter total revenues of $1.81 billion. FY 2007’s fourth-quarter home building revenues of $1.17 billion decreased 35% from FY 2006’s fourth-quarter home building revenues of $1.81 billion. Revenues from land sales totaled $2.0 million in FY 2007’s fourth quarter, compared to $0.3 million in FY 2006’s fourth quarter.

• FY 2007’s twelve-month total revenues of $4.65 billion decreased 24% from FY 2006’s twelve-month total revenues of $6.12 billion, the Company’s fiscal-year record. FY 2007’s twelve-month home building revenues of $4.64 billion decreased 24% from FY 2006’s twelve-month home building revenues of $6.12 billion, also the fiscal-year record. Revenues from land sales totaled $11.9 million in FY 2007’s, compared to $8.2 million in FY 2006.

• In addition, in the Company’s fourth quarter and full fiscal year 2007, unconsolidated entities in which the Company had an interest delivered $9.1 million and $56.1 million of homes, respectively, compared to $11.8 million and $107.1 million during the fourth quarter and full fiscal year, respectively, of FY 2006. The Company’s share of profits from the delivery of these homes is included in “Equity Earnings from Unconsolidated Entities” on the Company’s Income Statement.

• In FY 2007, the Company’s fiscal year-end backlog of $2.85 billion decreased 36% from FY 2006’s fiscal-year-end backlog of $4.49 billion. In addition, at 2007’s fiscal-year-end, unconsolidated entities in which the Company had an interest had a backlog of $79.3 million.

• The Company signed 1,073 gross contracts totaling approximately $693.7 million in FY 2007’s fourth quarter, a decline of 33% and 38%, respectively, compared to the 1,595 gross contracts totaling $1.12 billion signed in FY 2006’s fourth quarter.

• In FY 2007, fourth quarter cancellations totaled 417, compared to 347, 384, 436, 585 and 317 in FY 2007’s third, second and first quarters and FY 2006’s fourth and third quarters, respectively. FY 2006’s third quarter was the first period in which cancellations reached elevated levels in the current housing downturn. FY 2007’s fourth quarter cancellation rate (current-quarter cancellations divided by current-quarter signed contracts) rose to 38.9% versus 23.8%, 18.9%, 29.8%, respectively, in the preceding third, second and first quarters of 2007, and 36.7% and 18.0%, respectively, in FY 2006’s fourth and third quarters. As a percentage of beginning-quarter backlog, FY 2007’s fourth quarter cancellation rate was 8.3% compared to 6.0%, 6.5% and 6.7% in the third, second and first quarters of FY 2007, respectively, and 7.3% and 3.6% in the fourth and third quarters of FY 2006, respectively.

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• The Company’s FY 2007 fourth-quarter net contracts of 656 units, or approximately $365.2 million, declined by 35% and 48%, respectively, compared to FY 2006’s fourth-quarter contracts of 1,010 units, or $706.3 million. In addition, in FY 2007’s fourth quarter, unconsolidated entities in which the Company had an interest signed contracts of approximately $20.0 million.

• FY 2007’s twelve-month net contracts of approximately $3.01 billion declined by 33% from FY 2006’s twelve-month total of $4.46 billion. In addition, in FY 2007’s twelve-month period, unconsolidated entities in which the Company had an interest signed contracts of approximately $117.4 million.

⁽¹⁾Net debt-to-capital is calculated as total debt minus mortgage warehouse loans minus cash, divided by total debt minus mortgage warehouse loans minus cash plus stockholders’ equity.

Toll Brothers will be broadcasting live via the Investor Relations section of its website, www.tollbrothers.com, a conference call hosted by chairman and chief executive officer Robert I. Toll at 2:00 p.m. (EST) today, December 6, 2007, to discuss these results and its outlook for FY 2008. To access the call, enter the Toll Brothers website, then click on the Investor Relations page, and select “Conference Calls”. Participants are encouraged to log on at least fifteen minutes prior to the start of the presentation to register and download any necessary software. The call can be heard live with an on-line replay which will follow and continue through January 31, 2008.

Toll Brothers, Inc. is the nation’s leading builder of luxury homes. The Company began business in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol “TOL”. The Company serves move-up, empty-nester, active-adult and second-home home buyers and operates in 22 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and West Virginia.

Toll Brothers builds luxury single-family detached and attached home communities, master planned luxury residential resort-style golf communities and urban low-, mid- and high-rise communities, principally on land it develops and improves. The Company operates its own architectural, engineering, mortgage, title, land development and land sale, golf course development and management and landscape subsidiaries. The Company also operates its own lumber distribution and house component assembly and manufacturing operations.

Toll Brothers, a FORTUNE 500 Company, is the only publicly traded national home building company to have won all three of the industry’s highest honors: America’s Best Builder from the National Association of Home Builders, the National Housing Quality Award, and Builder of the Year. Toll Brothers proudly supports the communities in which it builds; among other philanthropic pursuits, the Company sponsors the Toll Brothers — Metropolitan Opera International Radio Network, bringing opera to neighborhoods throughout the world. For more information, visit tollbrothers.com.

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Certain information included herein and in other Company reports, SEC filings, verbal or written statements and presentations is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, information related to anticipated operating results, financial resources, changes in revenues, changes in profitability, changes in margins, changes in accounting treatment, interest expense, land-related write-downs, home buyer cancellations, growth and expansion, anticipated income to be realized from our investments in unconsolidated entities, the ability to acquire land, the ability to gain approvals and to 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 in the future, industry trends, and stock market valuations. Such forward-looking information involves important risks and uncertainties that could significantly affect actual results and cause them to differ materially from expectations expressed herein and in other Company reports, SEC filings, statements and presentations. These risks and uncertainties include local, regional and national economic conditions, the demand for homes, domestic and international political events, uncertainties created by terrorist attacks, the effects of governmental regulation, the competitive environment in which the Company operates, fluctuations in interest rates, changes in home prices, the availability and cost of land for future growth, the availability of capital, uncertainties and fluctuations in capital and securities markets, changes in tax laws and their interpretation, legal proceedings, the availability of adequate insurance at reasonable cost, the ability of customers to obtain adequate and affordable financing for the purchase of homes, the ability of home buyers to sell their existing homes, the availability and cost of labor and materials, and weather conditions.

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TOLL BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)

	October 31,			October 31,
	2007			2006
	(Unaudited)
ASSETS
Cash and cash equivalents	$	900,337		$	632,524
Inventory		5,572,655			6,095,702
Property, construction and office equipment, net		84,265			99,089
Receivables, prepaid expenses and other assets		135,910			160,446
Contracts receivable		46,525			170,111
Mortgage loans receivable		93,189			130,326
Customer deposits held in escrow		34,367			49,676
Investments in and advances to unconsolidated entities		183,171			245,667
Deferred tax assets, net		169,897
	$	7,220,316		$	7,583,541
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Loans payable	$	696,814		$	736,934
Senior notes		1,142,306			1,141,167
Senior subordinated notes		350,000			350,000
Mortgage company warehouse loan		76,730			119,705
Customer deposits		260,155			360,147
Accounts payable		236,877			292,171
Accrued expenses		724,229			825,288
Income taxes payable		197,960			334,500
Total liabilities		3,685,071			4,159,912
Minority interest		8,011			7,703
Stockholders’ equity
Preferred stock, none issued
Common Stock		1,570			1,563
Additional paid-in capital		227,561			220,783
Retained earnings		3,298,925			3,263,274
Treasury stock		(425	)		(69,694	)
Accumulated other comprehensive income		(397	)
Total stockholders’ equity		3,527,234			3,415,926
	$	7,220,316		$	7,583,541

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TOLL BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)

	Twelve Months Ended					Three Months Ended
	October 31,					October 31,
	2007			2006		2007			2006
Revenues:
Completed contract	$	4,495,600		$	5,945,169	$	1,138,705		$	1,777,077
Percentage of completion		139,493			170,111		28,603			31,424
Land sales		11,886			8,173		2,032			250
		4,646,979			6,123,453		1,169,340			1,808,751
Costs of revenues:
Completed contract		3,905,907			4,263,200		1,094,508			1,350,450
Percentage of completion		108,954			132,268		21,414			21,749
Land sales		8,069			6,997		1,628			155
Interest		102,447			121,993		26,189			33,548
		4,125,377			4,524,458		1,143,739			1,405,902
Selling, general and administrative		516,728			573,404		120,465			144,063
Goodwill impairment		8,973			—		—			—
(Loss) income from operations		(4,099	)		1,025,591		(94,864	)		258,786
Other:
(Loss)earnings from unconsolidated entities		(40,353	)		48,361		(55,728	)		11,699
Interest and other		115,132			52,664		29,533			20,672
Income (loss) before income taxes		70,680			1,126,616		(121,059	)		291,157
Income taxes		35,029			439,403		(39,218	)		117,363
Net income (loss)	$	35,651		$	687,213	$	(81,841	)	$	173,794
Earnings (loss) per share:
Basic	$	0.23		$	4.45	$	(0.52	)	$	1.13
Diluted	$	0.22		$	4.17	$	(0.52	)	$	1.07
Weighted average number of shares:
Basic		155,318			154,300		156,787			153,641
Diluted		164,166			164,852		156,787			163,139
Additional information:
Interest incurred	$	136,758		$	135,166	$	34,056		$	34,287
Depreciation and amortization	$	31,849		$	32,627	$	7,603		$	8,984
Interest expense by source of revenue:
Completed contract	$	97,246		$	116,405	$	25,527		$	32,636
Percentage of completion		4,797			4,552		540			869
Land sales		404			1,036		122			43
	$	102,447		$	121,993	$	26,189		$	33,548

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	Toll Brothers operates in four geographic segments:
North:	Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey, New York, Ohio (2006 only) and Rhode Island
Mid-Atlantic:	Delaware, Maryland, Pennsylvania, Virginia and West Virginia
South:	Florida, Georgia (2007 only), North Carolina, South Carolina and Texas
West:	Arizona, California, Colorado and Nevada

	Three Months Ended						Three Months Ended
	October 31,						October 31,
	Units						$ (Millions)
HOME BUILDING REVENUES	2007			2006			2007			2006
COMPLETED CONTRACT COMMUNITIES
North		432			584		$	313.4		$	403.2
Mid-Atlantic		516			743			325.5			481.9
South		345			588			187.2			344.1
West		357			587			312.6			547.8
Total		1,650			2,502		$	1,138.7		$	1,777.0
PERCENTAGE OF COMPLETION(2)
North							$	18.7		$	25.2
South								9.9			9.3
West											(3.0	)
Total		—			—		$	28.6		$	31.5
TOTAL
North		432			584		$	332.1		$	428.4
Mid-Atlantic		516			743			325.5			481.9
South		345			588			197.1			353.4
West		357			587			312.6			544.8
Total consolidated		1,650			2,502		$	1,167.3		$	1,808.5
CONTRACTS
COMPLETED CONTRACT COMMUNITIES (1)
North		249			321		$	159.2		$	218.4
Mid-Atlantic		291			345			174.2			218.8
South		113			201			55.7			117.8
West		17			131			(15.5	)		145.3
Total		670			998		$	373.6		$	700.3
PERCENTAGE OF COMPLETION
North		(13	)		13		$	(7.4	)	$	7.8
South		(1	)		(1	)		(0.9	)		(1.8	)
Total		(14	)		12		$	(8.3	)	$	6.0
TOTAL
North		236			334		$	151.8		$	226.2
Mid-Atlantic		291			345			174.2			218.8
South		112			200			54.8			116.0
West		17			131			(15.5	)		145.3
Total consolidated		656			1,010		$	365.3		$	706.3

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	At October 31,				At October 31,
	Units				$ (Millions)
BACKLOG	2007		2006		2007			2006
COMPLETED CONTRACT COMMUNITIES(1)
North		1,431		1,440	$	1,051.0		$	1,036.7
Mid-Atlantic		973		1,605		676.7			1,064.7
South		789		1,591		428.9			896.4
West		674		1,505		667.6			1,336.3
Total		3,867		6,141	$	2,824.2		$	4,334.1
PERCENTAGE OF COMPLETION(2)
North		66		316	$	38.7		$	210.4
South		17		76		46.7			114.0
Less revenue recognized on units remaining in backlog						(55.2	)		(170.1	)
Total		83		392	$	30.2		$	154.3
TOTAL
North		1,497		1,756	$	1,089.7		$	1,247.1
Mid-Atlantic		973		1,605		676.7			1,064.7
South		806		1,667		475.6			1,010.4
West		674		1,505		667.6			1,336.3
Less revenue recognized on units remaining in backlog						(55.2	)		(170.1	)
Total consolidated		3,950		6,533	$	2,854.4		$	4,488.4

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	Twelve Months Ended				Twelve Months Ended
	October 31,				October 31,
	Units				$ (Millions)
HOME BUILDING REVENUES	2007		2006		2007		2006
COMPLETED CONTRACT COMMUNITIES
North		1,467		1,983	$	993.1	$	1,333.9
Mid-Atlantic		2,137		2,697		1,338.4		1,777.5
South		1,631		2,017		922.3		1,124.8
West		1,452		1,904		1,241.8		1,709.0
Total		6,687		8,601	$	4,495.6	$	5,945.2
PERCENTAGE OF COMPLETION(2)
North					$	91.0	$	110.3
South						48.5		59.8
Total		—		—	$	139.5	$	170.1
TOTAL
North		1,467		1,983	$	1,084.1	$	1,444.2
Mid-Atlantic		2,137		2,697		1,338.4		1,777.5
South		1,631		2,017		970.8		1,184.6
West		1,452		1,904		1,241.8		1,709.0
Total consolidated		6,687		8,601	$	4,635.1	$	6,115.3
CONTRACTS
COMPLETED CONTRACT COMMUNITIES (1)
North		1,458		1,612	$	1,007.4	$	1,134.2
Mid-Atlantic		1,505		1,942		950.4		1,262.8
South		829		1,290		454.9		784.3
West		621		1,255		573.0		1,220.3
Total		4,413		6,099	$	2,985.7	$	4,401.6
PERCENTAGE OF COMPLETION
North		27		61	$	22.0	$	43.1
South				4		2.4		16.0
Total		27		65	$	24.4	$	59.1
TOTAL
North		1,485		1,673	$	1,029.4	$	1,177.3
Mid-Atlantic		1,505		1,942		950.4		1,262.8
South		829		1,294		457.3		800.3
West		621		1,255		573.0		1,220.3
Total consolidated		4,440		6,164	$	3,010.1	$	4,460.7

*more*

⁽¹⁾Completed contract communities contracts and backlog include certain projects that have extended sales and construction cycles. Information related to these projects’ contracts signed in the three-month and twelve-month periods ended October 31, 2007 and 2006, and the backlog of undelivered homes at October 31, 2007 and 2006 are provided below:

Contracts —
Three Months Ended October 31,
	2007			2006		2007			2006
	Units			Units		$(Mill)			$(Mill)
North		28			48	$	25.9		$	49.1
Mid-Atlantic		2			6		1.3			2.2
West		(6	)		3		(4.4	)		0.5
Total		24			57	$	22.8		$	51.8

Contracts —
Twelve Months Ended October 31,
	2007			2006		2007			2006
	Units			Units		$(Mill)			$(Mill)
North		329			240	$	325.4		$	228.4
Mid-Atlantic		14			28		6.4			10.6
West		(6	)		19		(4.0	)		12.7
Total		337			287	$	327.8		$	251.7

Backlog at October 31,
	2007		2006		2007		2006
	Units		Units		$(Mill)		$(Mill)
North		533		256	$	499.0	$	244.0
Mid-Atlantic		72		58		30.0		23.6
West		20		26		14.2		18.2
Total		625		340	$	543.2	$	285.8

⁽²⁾Percentage of Completion deliveries in the three-month and twelve-month periods ended October 31, 2007 are provided below:

Deliveries for the three-month period ended October 31,

	2007		2006		2007		2006
	Units		Units		$(Mill)		$(Mill)
North		53			$	30.2
South		—				—
Total		53		—	$	30.2		—

Deliveries for the twelve-month period ended October 31,

	2007		2006		2007		2006
	Units		Units		$ (Mill)		$ (Mill)
North		277			$	193.7
South		59				69.6
Total		336		—	$	263.3		—

*more*

Unconsolidated entities:

The Company has investments in and advances to several entities that are accounted for using the equity method of accounting. Information on revenues, contracts signed and backlog are provided below:

	2007		2006		2007		2006
	Units		Units		$(Mill)		$(Mill)
Revenues
Three months ended October 31,		10		19	$	9.1	$	11.8
Twelve months ended October 31,		76		186	$	56.1	$	107.1
Contracts
Three months ended October 31,		28		25	$	20.0	$	17.2
Twelve months ended October 31,		159		108	$	117.4	$	69.1
Backlog at October 31,		108		25	$	79.3	$	18.0

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