0000950123-11-025922.txt : 20110517 0000950123-11-025922.hdr.sgml : 20110517 20110316154153 ACCESSION NUMBER: 0000950123-11-025922 CONFORMED SUBMISSION TYPE: CORRESP PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20110316 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TOLL BROTHERS INC CENTRAL INDEX KEY: 0000794170 STANDARD INDUSTRIAL CLASSIFICATION: OPERATIVE BUILDERS [1531] IRS NUMBER: 232416878 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: CORRESP BUSINESS ADDRESS: STREET 1: 250 GIBRALTAR ROAD CITY: HORSHAM STATE: PA ZIP: 19044 BUSINESS PHONE: 2159388000 MAIL ADDRESS: STREET 1: 250 GIBRALTAR ROAD CITY: HORSHAM STATE: PA ZIP: 19044 CORRESP 1 filename1.htm Correspondence
LETTERHEAD
March 16, 2011
VIA EDGAR AND OVERNIGHT DELIVERY
Mr. Terence O’Brien
Accounting Branch Chief
Division of Corporation Finance
United States Securities and Exchange Commission
100 F Street, N.E.
Mail Stop 7010
Washington, D.C. 20549-7010
     
RE:
  Toll Brothers, Inc.
 
  Form 10-K for the Fiscal Year Ended October 31, 2010
 
  Filed December 22, 2009
 
  File No. 001-09186
Dear Mr. O’Brien:
We have reviewed your letter of March 4, 2011 regarding the Toll Brothers, Inc. Annual Report on Form 10-K for the fiscal year ended October 31, 2010 (the “Form 10-K”) and are responding to your comments. To facilitate your review, we have included each comment to which we are responding herein prior to our response to that comment. This document is being submitted via EDGAR. In addition, we have sent you a paper copy.
We wish to thank you and Ms. Do for your time and for providing us with the opportunity to discuss your letter on Friday, March 11, 2011. We understand that your review and comments are to assist us in compliance with applicable disclosure requirements and to enhance the overall disclosure in our filings. We share these objectives and continue to respond to your comments with these goals in mind.

 

 

 

Form 10-K for the Year Ended October 31, 2010
Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A)
1.   Please tell us and disclose in future filings the amount of losses from mortgage put-backs in each of the three years presented.
The mortgage put-back costs for the last three fiscal years ended October 31 were as follows (amounts in thousands):
         
Fiscal 2008
   $ 1,340  
Fiscal 2009
   $ 753  
Fiscal 2010
   $ (255 ) -- recovery
As we stated during our call, these amounts are clearly immaterial to our financial statements. Accordingly, we do not believe that specific disclosure of these amounts offers the user/reader of our financial statements any meaningful insight into Toll Brothers, Inc. We will continue to monitor future results and adjust our disclosures accordingly.
2.   Please tell us the amount of revenue, costs and expenses and profit from your financial services operations during the periods presented. Tell us the amount of assets attributable to TBI Mortgage and any other mortgage or related operations. Please tell us which reportable segment includes your mortgage operations.
As we noted in our February 22, 2011 letter, our mortgage subsidiary is auxiliary to and financially supported by our homebuilding operations. As such, we operate the mortgage subsidiary at breakeven without any notable gain or loss. Any excess costs above revenues are included in cost of revenues in our statement of operations. As revenue and expenses net to zero and are not broken out separately, they are not included in a segment. The mortgage subsidiary’s assets are included in “corporate and other” in our segment reporting. Information regarding revenue, expenses and assets for the last three fiscal years ended October 31 is as follows (amounts in thousands):
                         
Fiscal year   2010     2009     2008  
 
                        
Revenue
   $ 11,727     $ 7,503     $ 13,122  
Expenses
     11,727       7,503       13,122  
Profit
     —       —       —  
 
                        
Assets at October 31:
   $ 96,400     $ 46,500     $ 54,100  

 

 

 

Should you have any additional comments or need further clarification of our responses, please contact me.
Yours truly,
         
/s/ Joseph R. Sicree      
Joseph R. Sicree     
Senior Vice President --
Chief Accounting Officer 		    
Direct telephone: 215 938 8045
Fax: 215 938 8422
E-mail: jsicree@tollbrothersinc.com