10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 31, 2012

or

¨ 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 1-9186

TOLL BROTHERS, INC.

(Exact name of registrant as specified in its charter)

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

(215) 938-8000

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

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  x    No  ¨

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  x    No  ¨

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

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

At March 1, 2012, there were approximately 166,729,000 shares of Common Stock, $.01 par value, outstanding.

TOLL BROTHERS, INC.

TABLE OF CONTENTS

	Page No.
Statement on Forward-Looking Information		1
PART I. Financial Information
Item 1. Financial Statements
Condensed Consolidated Balance Sheets at January 31, 2012 (Unaudited) and October 31, 2011		2
Condensed Consolidated Statements of Operations for the Three Months Ended January 31, 2012 and 2011 (Unaudited)		3
Condensed Consolidated Statements of Cash Flows for the Three Months Ended January 31, 2012 and 2011 (Unaudited)		4
Notes to Condensed Consolidated Financial Statements (Unaudited)		5
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		32
Item 3. Quantitative and Qualitative Disclosures About Market Risk		47
Item 4. Controls and Procedures		47
PART II. Other Information
Item 1. Legal Proceedings		48
Item 1A. Risk Factors		48
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		49
Item 6. Exhibits		50
SIGNATURES		51

STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information included in this report or in other materials we have filed or will file with the Securities and Exchange Commission ( “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. You 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 estimates or other expectations regarding future events. They contain words such as “anticipate,” “estimate,” “expect,” “envision,” “project,” “intend,” “plan,” “believe,” “may,” “can,” “could,” “might,” “should” and other words or phrases of similar meaning in connection with any discussion of future operating or financial performance. Such statements may include, but are not limited to, information related to: 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; unrecognized 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 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; and legal proceedings and claims.

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. Consequently, actual results may differ materially from those that might be anticipated from our forward looking statements. Therefore, we caution you not to place undue reliance on our forward-looking statements. The factors that could cause actual results to differ from those expressed or implied by our forward-looking statements include, among others: local, regional, national, and international economic conditions; demand for homes; changes in consumer confidence; changes in interest rates; unemployment rates; changes in sales conditions, including home prices, in the markets where we build homes; conditions in our newly entered markets and newly acquired operations; the competitive environment in which we operate; the availability and cost of land for future growth; conditions that could result in inventory write-downs or write-downs associated with investments in unconsolidated entities; the ability to recover our deferred tax assets; the availability of capital; uncertainties in the capital and securities markets; liquidity in the credit markets; changes in tax laws and their interpretation; effects of governmental legislation and regulation; the outcome of various legal proceedings; the availability of adequate insurance at reasonable cost; the impact of construction defect, product liability and home warranty claims, including the adequacy of self-insurance accruals and the applicability and sufficiency of our insurance coverage; the ability of customers to obtain financing for the purchase of homes; the ability of customers to sell their existing homes; the ability of the participants in various joint ventures to honor their commitments; the availability and cost of labor and building and construction materials; the cost of raw materials; construction delays; domestic and international political events; and weather conditions. This statement is provided as permitted by the Private Securities Litigation Reform Act of 1995.

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 2012,” and to “fiscal 2011,” “fiscal 2010,” “fiscal 2009,” and “fiscal 2008” refer to our fiscal years ending October 31, 2012, October 31, 2011, October 31, 2010, October 31, 2009, and October 31, 2008, respectively.

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.

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PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

TOLL BROTHERS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

		September 30,			September 30,
	January 31, 2012			October 31, 2011
	(unaudited)
ASSETS
Cash and cash equivalents	$	575,694		$	906,340
Marketable securities		143,729			233,572
Restricted cash		48,241			19,760
Inventory		3,655,100			3,416,723
Property, construction and office equipment, net		101,499			99,712
Receivables, prepaid expenses and other assets		98,191			105,576
Mortgage loans receivable		36,911			63,175
Customer deposits held in escrow		25,089			14,859
Investments in and advances to unconsolidated entities		193,626			126,355
Investments in non-performing loan portfolios and foreclosed real estate		96,822			69,174
	$	4,974,902		$	5,055,246
LIABILITIES AND EQUITY
Liabilities
Loans payable	$	93,279		$	106,556
Senior notes		1,491,442			1,490,972
Mortgage company warehouse loan		31,864			57,409
Customer deposits		97,334			83,824
Accounts payable		105,311			96,817
Accrued expenses		451,414			521,051
Income taxes payable		100,276			106,066
Total liabilities		2,370,920			2,462,695
Equity
Stockholders’ equity
Preferred stock, none issued
Common stock, 168,689 and 168,675 shares issued at January 31, 2012 and October 31, 2011, respectively		1,687			1,687
Additional paid-in capital		399,743			400,382
Retained earnings		2,231,465			2,234,251
Treasury stock, at cost—2,021 shares and 2,946 shares at January 31, 2012 and October 31, 2011, respectively		(31,531	)		(47,065	)
Accumulated other comprehensive loss		(3,563	)		(2,902	)
Total stockholders’ equity		2,597,801			2,586,353
Noncontrolling interest		6,181			6,198
Total equity		2,603,982			2,592,551
	$	4,974,902		$	5,055,246

See accompanying notes

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TOLL BROTHERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share data)

(Unaudited)

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Revenues	$	321,955		$	334,116
Cost of revenues		271,608			281,965
Selling, general and administrative		69,637			61,251
Interest expense					1,112
		341,245			344,328
Loss from operations		(19,290	)		(10,212	)
Other:
Income (loss) from unconsolidated entities		6,687			(11,002	)
Interest and other		6,195			4,167
Loss before income tax benefit		(6,408	)		(17,047	)
Income tax benefit		(3,622	)		(20,464	)
Net (loss) income	$	(2,786	)	$	3,417
(Loss) income per share:
Basic	$	(0.02	)	$	0.02
Diluted	$	(0.02	)	$	0.02
Weighted average number of shares:
Basic		166,311			166,677
Diluted		166,311			168,121

See accompanying notes

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TOLL BROTHERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Cash flow used in operating activities:
Net (loss) income	$	(2,786	)	$	3,417
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization		5,229			4,387
Stock-based compensation		5,626			5,373
Impairments of investments in unconsolidated entities					20,000
Income from unconsolidated entities		(6,687	)		(8,998	)
Distributions of earnings from unconsolidated entities		872			2,793
Income from non-performing loan portfolios and foreclosed real estate		(4,138	)
Deferred tax benefit		(1,246	)		(6,589	)
Deferred tax valuation allowances		1,246			6,589
Inventory impairments and write-offs		8,120			5,126
Change in fair value of mortgage loans receivable and derivative instruments		346			714
Gain on marketable securities		(39	)
Changes in operating assets and liabilities
Increase in inventory		(108,468	)		(120,875	)
Origination of mortgage loans		(120,662	)		(182,659	)
Sale of mortgage loans		146,895			233,891
(Increase) decrease in restricted cash		(28,481	)		8,498
Decrease in receivables, prepaid expenses and other assets		11,929			7,937
Increase in customer deposits		3,230			2,277
Decrease in accounts payable and accrued expenses		(67,127	)		(38,987	)
Decrease in income taxes payable		(5,790	)		(20,082	)
Net cash used in operating activities		(161,931	)		(77,188	)
Cash flow used in investing activities:
Purchase of property and equipment—net		(3,540	)		(4,281	)
Purchase of marketable securities					(119,238	)
Sale and redemption of marketable securities		88,217			102,500
Investment in and advances to unconsolidated entities		(71,784	)
Return of investments in unconsolidated entities		15,333			6,305
Investment in non-performing loan portfolios and foreclosed real estate		(26,410	)
Return of investments in non-performing loan portfolios and foreclosed real estate		3,702
Acquisition of a business		(144,746	)
Net cash used in investing activities		(139,228	)		(14,714	)
Cash flow used in financing activities:
Proceeds from loans payable		199,139			266,035
Principal payments of loans payable		(237,896	)		(329,754	)
Proceeds from stock-based benefit plans		9,334			3,323
Purchase of treasury stock		(64	)		(163	)
Net cash used in financing activities		(29,487	)		(60,559	)
Net decrease in cash and cash equivalents		(330,646	)		(152,461	)
Cash and cash equivalents, beginning of period		906,340			1,039,060
Cash and cash equivalents, end of period	$	575,694		$	886,599

See accompanying notes

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TOLL BROTHERS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements include the accounts of Toll Brothers, Inc. (the “Company”), a Delaware corporation, and those majority-owned subsidiaries it controls. 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 the Company has effective control of the entity, in which case the entity would be consolidated.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. The October 31, 2011 balance sheet amounts and disclosures included herein have been derived from the Company’s October 31, 2011 audited financial statements. Since the accompanying condensed consolidated financial statements do not include all the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements, the Company suggests that they be read in conjunction with the consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended October 31, 2011. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary to present fairly the Company’s financial position as of January 31, 2012, the results of its operations for the three-month periods ended January 31, 2012 and 2011, and its cash flows for the three-month periods ended January 31, 2012 and 2011. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year.

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 re-opens. While the community remains closed, carrying costs such as real estate taxes are expensed as incurred.

The Company capitalizes certain interest costs to qualified inventory during the development and construction period of its communities in accordance with ASC 835-20, “Capitalization of Interest” (“ASC 835-20”). Capitalized interest is charged to cost of revenues when the related inventory is delivered. Interest incurred on homebuilding indebtedness in excess of qualified inventory, as defined in ASC 835-20, is charged directly to operations in the period incurred.

Once a parcel of land has been approved for development and the Company opens one of its typical communities, it may take four 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. The Company’s master planned communities, consisting of several smaller communities, may take up to ten years or more to complete. Because the Company’s inventory is considered a long-lived asset under GAAP, the Company is required, under ASC 360, to regularly review the carrying value of each community and write down the value of those communities for which it believes the values have been impaired.

Current Communities: When the profitability of a current 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

5

discounting the estimated future cash flow of each community. The impairment is charged to cost of revenues in the period in which the impairment is determined. In estimating the future undiscounted cash flow of a community, the Company uses various estimates such as: (a) 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 the Company or by other builders; (b) the expected sales prices and sales incentives to be offered in a community; (c) 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; (d) 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 (e) 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: The Company evaluates all land held for future communities or future sections of current communities, whether owned or under contract, to determine whether or not it expects to proceed with the development of the land as originally contemplated. This evaluation encompasses the same types of estimates used for current 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 will 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, the Company decides (a) as to land under contract to be purchased, whether the contract will likely be terminated or renegotiated, and (b) as to land owned, whether the land will likely be developed as contemplated or in an alternative manner, or should be sold. The Company then further determines whether costs that have been capitalized to the community are recoverable or should be written off. The write-off is charged to 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 the Company at the time such estimates are made and its expectations of future operations and economic conditions. Should the estimates or expectations used in determining estimated fair value deteriorate in the future, the Company may be required to recognize additional impairment charges and write-offs related to current and future communities.

Variable Interest Entities: The Company has a significant number of land purchase contracts and several investments in unconsolidated entities which it evaluates in accordance with ASC 810, “Consolidation” (“ASC 810”). The Company analyzes its land purchase contracts and the unconsolidated entities in which it has an investment to determine whether the land sellers and unconsolidated entities are variable interest entities (“VIEs”) and, if so, whether the Company is the primary beneficiary. If the Company is determined to be the primary beneficiary of a VIE, it must consolidate the VIE. A VIE is an entity with insufficient equity investment or in which the equity investors lack some of the characteristics of a controlling financial interest. In determining whether it is the primary beneficiary, the Company considers, among other things, whether it has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, including, but not limited to, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE. The Company also considers whether it has the obligation to absorb losses of or the right to receive benefits from the VIE.

Fair Value Disclosures

The Company uses 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 which 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.

6

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.

2. Acquisition

In November 2011, the Company acquired substantially all of the assets of CamWest Development LLC (“CamWest”) for approximately $144.7 million in cash. The assets acquired were primarily inventory. As part of the acquisition, the Company assumed contracts to deliver approximately 29 homes with an aggregate value of $13.7 million. The average price of the homes in backlog was approximately $471,000. The assets the Company acquired included approximately 1,245 home sites owned and 254 home sites controlled through land purchase agreements. The Company’s selling community count increased by 15 communities at the acquisition date. The acquisition of the assets of CamWest was not material to the Company’s results of operations or its financial condition.

3. Inventory

Inventory at January 31, 2012 and October 31, 2011 consisted of the following (amounts in thousands):

		September 30,		September 30,
	January 31,		October 31,
	2012		2011
Land controlled for future communities	$	43,215	$	46,581
Land owned for future communities		1,068,747		979,145
Operating communities		2,543,138		2,390,997
	$	3,655,100	$	3,416,723

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 twelve months of the end of the fiscal period 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, less impairment charges recognized against the communities.

Communities that were previously offering homes for sale but are temporarily closed due to business conditions that do not have any remaining backlog and are not expected to reopen within twelve months of the end of the fiscal period being reported on have been classified as land owned for future communities

Information regarding the classification, number and carrying value of these temporarily closed communities, as of the date indicated, is provided in the table below.

		September 30,		September 30,
	January 31,		October 31,
	2012		2011
Land owned for future communities:
Number of communities		44		43
Carrying value (in thousands)	$	245,025	$	256,468
Operating communities:
Number of communities		6		2
Carrying value (in thousands)	$	49,723	$	11,076

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During the three-month period ended January 31, 2011, the Company reclassified $20.0 million of inventory related to commercial retail space located in one of its high-rise projects to property, construction and office equipment. The $20.0 million was reclassified due to the completion of construction of the facilities and the substantial completion of the high-rise project of which the facilities are a part.

The Company provided for inventory impairment charges and the expensing of costs that it believed not to be recoverable, for the periods indicated; these are shown in the table below (amounts in thousands).

		September 30,		September 30,
	Three months ended January 31,
	2012		2011
Charge (recovery):
Land controlled for future communities	$	777	$	(349	)
Land owned for future communities		918
Operating communities		6,425		5,475
	$	8,120	$	5,126

At January 31, 2012, the Company evaluated its land purchase contracts to determine if any of the selling entities were VIEs and, if they were, whether the Company was the primary beneficiary of any of them. Under these land purchase contracts, the Company does not possess legal title to the land and its risk is generally limited to deposits paid to the sellers and the creditors of the sellers generally have no recourse against the Company. At January 31, 2012, the Company determined that 57 land purchase contracts, with an aggregate purchase price of $437.9 million, on which it had made aggregate deposits totaling $25.5 million, were VIEs, and that it was not the primary beneficiary of any VIE related to its land purchase contracts.

Interest incurred, capitalized and expensed, for the periods indicated, was as follows (amounts in thousands):

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Interest capitalized, beginning of period	$	298,757		$	267,278
Interest incurred		28,899			29,716
Interest expensed to cost of revenues		(16,321	)		(18,082	)
Interest directly expensed to operations					(1,112	)
Write-off against other income					(70	)
Interest reclassified to property, construction and office equipment					(3,000	)
Interest capitalized, end of period	$	311,335		$	274,730

Inventory impairment charges are recognized against all inventory costs of a community, such as land, land improvements, cost of home construction and capitalized interest. The amounts included in the table directly above reflect the gross amount of capitalized interest without allocation of any impairment charges recognized. The Company estimates that, had inventory impairment charges been allocated on a pro rata basis to the individual components of inventory, capitalized interest at January 31, 2012 and 2011 would have been reduced by approximately $53.9 million and $53.8 million, respectively.

4. Investments in and Advances to Unconsolidated Entities

The Company has investments in and advances to various unconsolidated entities.

Development Joint Ventures

The Company has investments in and advances to a number of joint ventures with unrelated parties to develop land (“Development Joint Ventures”). Some of these Development Joint Ventures develop land for the sole use of the venture participants, including the Company, and others develop land for sale to the joint venture participants and to unrelated builders. The Company recognizes its share of earnings from the sale of home sites by the Development Joint Ventures to other builders. With regard to home sites the Company purchases from the Development Joint Ventures, the Company reduces its cost basis in those home sites by its share of the earnings on the home sites it purchases. At January 31, 2012, the Company had approximately $8.6 million, net of impairment charges, invested in or advanced to the Development Joint Ventures. In addition, the Company has a funding commitment of $3.5 million to one Development Joint Venture should an additional investment in that venture be required.

8

Some of the impairments related to Development Joint Ventures since 2008 were attributable to the Company’s investment in South Edge LLC (“South Edge”), a Development Joint Venture organized to develop a master planned community in the City of Henderson, Nevada. In 2008 and 2009, based on the deterioration of the real estate market in Nevada and the filing of lawsuits against the Company and the other parent companies of the members of South Edge by lenders to South Edge to collect on completion guaranties executed in favor of the lenders, the Company recognized impairments which totaled $70.3 million.

During fiscal 2010, the members of South Edge engaged in negotiations with the lenders to settle the lenders’ claims. Based on the status of the lawsuits and the ongoing negotiations, the Company believed that it had adequately provided for a settlement of these claims.

In December 2010, some of the lenders filed an involuntary bankruptcy petition against South Edge, claiming that the involuntary bankruptcy filing triggered obligations on payment guarantees executed by the Company and the other parent companies of the members of South Edge in favor of the lenders. In February, 2011, the Bankruptcy Court upheld the involuntary petition and appointed a trustee to take over the operations of South Edge. Based on this court decision, the potential liability under the payment guaranty and the further erosion in the value of the real property owned by South Edge, the Company recorded additional impairments of $20 million in the first quarter of fiscal 2011 and $9.6 million in the second quarter of fiscal 2011. The Company reversed $3.9 million of previously recognized impairments on South Edge in the fourth quarter of fiscal 2011 based on its evaluation of its expected potential liability at that time. The total cumulative impairment recognized for South Edge through January 31, 2012 was $96 million.

During the third quarter of fiscal 2011, the Company and a majority of the members of South Edge reached an agreement with the lenders and the bankruptcy trustee to settle the disputes involving South Edge. The settlement provided, among other things, for payments by the members of South Edge to the lenders (the Company’s share was $63.2 million, $57.6 million of which was paid in November 2011) and the conveyance of the real estate free of the prior debt owned by South Edge to a new joint venture organized by four of the members of South Edge.

The Company believes it has made adequate provision at January 31, 2012 for any remaining liabilities with respect to South Edge. The Company’s investment in the successor joint venture to South Edge is carried at nominal value.

The Company did not recognize any impairment charges in connection with the Development Joint Ventures in the three-month period ended January 31, 2012.

Planned Community Joint Venture

The Company entered into a joint venture in October 2008 for the development and sale of homes in a master planned community (the “Planned Community Joint Venture”). During both fiscal 2009 and 2010, the joint venture’s performance was as expected and the Company estimated that the fair value of its investment exceeded its carrying value at the end of each of the reporting periods. In the early part of fiscal 2011, the Company saw signs of increased sales activity consistent with the seasonality of that market and it continued to believe the investment was not impaired. In the late spring of 2011, demand for homes in this community unexpectedly weakened. When the Company evaluates the carrying value of its investment, it considers the current and long-term outlook for the operations of the community and the anticipated period of time, if ever, it would take for the fair value of the investment to recover above the carrying value of the investment. Applying that standard, the Company’s review of the joint venture’s expected future performance based on its historical performance and market conditions at that time, as well as expected sales paces and prices and the joint venture’s expected cash flows led the Company to determine that the value of its investment was impaired and that this impairment was other than temporary. As a result, in the second quarter of fiscal 2011, the Company recognized an impairment charge of $10.0 million. That market continued to worsen and, in the fourth quarter of fiscal 2011, the Company determined that the value of its investment was further impaired and that this impairment was other than temporary and the Company recognized an additional impairment charge of $5.2 million. Therefore, as of January 31, 2012, the Company had recognized cumulative impairment charges in connection with the Planned Community Joint Venture of $15.2 million.

At January 31, 2012, the Company had an investment of $30.7 million, net of the $15.2 million of impairments recognized, in this Planned Community Joint Venture. At January 31, 2012, the participants had agreed to contribute additional funds of up to $8.3 million each, if required. If a participant fails to make a required capital contribution, the other participant may make the additional contribution and diminish the non-contributing participant’s ownership interest.

9

At January 31, 2012, this joint venture did not have any indebtedness.

Condominium Joint Ventures

At January 31, 2012, the Company had an aggregate of $119.4 million of investments in and advances to five joint ventures with unrelated parties to develop luxury for-sale and rental residential units and commercial space (“Condominium Joint Ventures”).

In December 2011, the Company entered into a joint venture to develop a high-rise luxury for-sale/rental project in the metro-New York market. The Company has invested $76.7 million and is committed to make additional investments of $37.5 million. Under the terms of the agreement, upon completion of the construction of the building, the Company will acquire ownership of the top eighteen floors of the building to sell, for its own account, luxury condominium units and its partner will receive ownership of the lower floors containing residential, for lease units and retail space.

As of January 31, 2012, the Company had recognized cumulative impairment charges against its investments in the Condominium Joint Ventures and its pro rata share of impairment charges recognized by these Condominium Joint Ventures in the amount of $63.9 million. The Company did not recognize any impairment charges in connection with its Condominium Joint Ventures in the three-month period ended January 31, 2012 and 2011.

Toll Brothers Realty Trust and Trust II

In fiscal 2005, the Company, together with the Pennsylvania State Employees Retirement System (“PASERS”), formed Toll Brothers Realty Trust II (“Trust II”) to be in a position to invest in commercial real estate opportunities. Trust II is owned 50% by the Company and 50% by an affiliate of PASERS. At January 31, 2012, the Company had an investment of $0.4 million in Trust II. Prior to the formation of Trust II, the Company formed Toll Brothers Realty Trust (the “Trust”) in 1998 to invest in commercial real estate opportunities. The Trust is effectively owned one-third by the Company; one-third by Robert I. Toll, Bruce E. Toll (and members of his family), Douglas C. Yearley, Jr. and former members of the Company’s senior management; and one-third by an affiliate of PASERS (collectively, the “Shareholders”). As of January 31, 2012, the Company had a net investment in the Trust of $0.3 million. The Company provides development, finance and management services to the Trust and recognized fees under the terms of various agreements in the amounts of $0.5 million in each of the three-month periods ended January 31, 2012 and 2011. The Company believes that the transactions between itself and the Trust were on terms no less favorable than it would have agreed to with unrelated parties.

Structured Asset Joint Venture

In July 2010, the Company, through Gibraltar Capital and Asset Management LLC (“Gibraltar”), invested $29.1 million in a joint venture in which it is a 20% participant with two unrelated parties to purchase a 40% interest in an entity that owns and controls a portfolio of loans and real estate (“Structured Asset Joint Venture”). At January 31, 2012, the Company had an investment of $34.2 million in this Structured Asset Joint Venture. At January 31, 2012, the Company did not have any commitments to make additional contributions to the joint venture and has not guaranteed any of the joint venture’s liabilities. If the joint venture needs additional capital and a participant fails to make a requested capital contribution, the other participants may make a contribution in consideration for a preferred return or may make the additional capital contribution and diminish the non-contributing participant’s ownership interest.

General

At January 31, 2012, the Company had accrued $2.6 million of aggregate exposure with respect to its estimated obligations to unconsolidated entities in which it has an investment. The Company’s investments in these entities are accounted for using the equity method. The Company recognized $20.0 million of impairment charges related to its investments in and advances to its Development Joint Ventures in the three-month period ended January 31, 2011. The Company did not recognize any impairment charges related to its investments in and advances to unconsolidated entities in the three-month period ended January 31, 2012. The fiscal 2011 impairment charges related to these entities are included in “Loss from unconsolidated entities” in the Company’s consolidated statement of operations for the three month period ended January 31, 2011.

The condensed consolidated balance sheets, as of the dates indicated and the condensed consolidated statements of operations, for the periods indicated, for the Company’s unconsolidated entities in which it has an investment, aggregated by type of business, are as follows (in thousands):

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Condensed Balance Sheets:

		September 30,		September 30,		September 30,		September 30,		September 30,
	January 31, 2012
	Develop- ment Joint Ventures		Home Building Joint Ventures		Toll Brothers Realty Trust I and II		Structured Asset Joint Venture		Total
Cash and cash equivalents	$	13,067	$	9,282	$	10,620	$	29,996	$	62,965
Inventory		191,031		296,781		5,542				493,354
Non-performing loan portfolio								288,130		288,130
Rental properties						176,979				176,979
Real estate owned (“REO”)						1,087		239,573		240,660
Other assets (1)		21,047		58,989		9,033		172,024		261,093
Total assets	$	225,145	$	365,052	$	203,261	$	729,723	$	1,523,181
Debt (1)	$	71,444	$	35,363	$	198,066	$	311,562	$	616,435
Other liabilities		21,127		9,363		4,473		424		35,387
Members’ equity		132,574		320,326		722		170,995		624,617
Non-controlling interest								246,742		246,742
Total liabilities and equity	$	225,145	$	365,052	$	203,261	$	729,723	$	1,523,181
Company’s net investment in unconsolidated entities (2)	$	8,592	$	150,135	$	700	$	34,199	$	193,626

		September 30,		September 30,		September 30,		September 30,		September 30,
	October 31, 2011
	Develop- ment Joint Ventures		Home Building Joint Ventures		Toll Brothers Realty Trust I and II		Structured Asset Joint Venture		Total
Cash and cash equivalents	$	14,190	$	10,663	$	11,726	$	48,780	$	85,359
Inventory		218,339		170,239		5,501				394,079
Non-performing loan portfolio								295,044		295,044
Rental properties						178,339				178,339
Real estate owned						1,087		230,872		231,959
Other assets (1)		150,316		20,080		9,675		159,143		339,214
Total assets	$	382,845	$	200,982	$	206,328	$	733,839	$	1,523,994
Debt (1)	$	327,856	$	50,515	$	198,927	$	310,847	$	888,145
Other liabilities		5,352		9,745		3,427		382		18,906
Members’ equity		49,637		140,722		3,974		172,944		367,277
Non-controlling interest								249,666		249,666
Total liabilities and equity	$	382,845	$	200,982	$	206,328	$	733,839	$	1,523,994
Company’s net investment in unconsolidated entities (2)	$	17,098	$	72,734	$	1,872	$	34,651	$	126,355

(1) Included in other assets at January 31, 2012 and October 31, 2011 of the Structured Asset Joint Venture is $165.5 million and $152.6 million, respectively, of restricted cash held in a defeasance account which will be used to repay debt of the Structured Asset Joint Venture.

(2) Differences between the Company’s net investment in unconsolidated entities and its underlying equity in the net assets of the entities is primarily a result of impairments related to the Company’s investments in unconsolidated entities, a loan made to one of the entities by the Company, and distributions from entities in excess of the carrying amount of the Company’s net investment.

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Condensed Statements of Operations:

		September 30,		September 30,		September 30,			September 30,			September 30,
	For the three months ended January 31, 2012
	Develop- ment Joint Ventures		Home Building Joint Ventures		Toll Brothers Realty Trust I and II			Structured Asset Joint Venture			Total
Revenues	$	33,584	$	23,430	$	9,476		$	8,133		$	74,623
Cost of revenues		31,771		17,794		3,343			11,067			63,975
Other expenses		225		945		6,785			2,631			10,586
Loss on disposition of loans and REO									44			44
Total expenses—net		31,996		18,739		10,128			13,742			74,605
Income (loss) from operations		1,588		4,691		(652	)		(5,609	)		18
Other income		2,653		5					137			2,795
Net income (loss) before noncontrolling interest		4,241		4,696		(652	)		(5,472	)		2,813
Less: Net loss attributable to noncontrolling interest									(3,283	)		(3,283	)
Net income (loss)	$	4,241		4,696	$	(652	)	$	(2,189	)	$	6,096
Company’s equity in earnings (losses) of unconsolidated entities (3)	$	1,996	$	4,520	$	623		$	(452	)	$	6,687

		September 30,			September 30,		September 30,			September 30,			September 30,
	For the three months ended January 31, 2011
	Develop- ment Joint Ventures			Home Building Joint Ventures		Toll Brothers Realty Trust I and II			Structured Asset Joint Venture			Total
Revenues	$	1,085		$	88,014	$	9,150		$	12,002		$	110,251
Cost of revenues		1,159			69,169		3,489			9,558			83,375
Other expenses		157			3,009		6,002			3,271			12,439
Gain on disposition of loans and REO										(11,374	)		(11,374	)
Total expenses—net		1,316			72,178		9,491			1,455			84,440
Income (loss) from operations		(231	)		15,836		(341	)		10,547			25,811
Other income		2,379			36					88			2,503
Net income (loss) before noncontrolling interest		2,148			15,872		(341	)		10,635			28,314
Less: Net income attributable to noncontrolling interest										(6,383	)		(6,383	)
Net income (loss)	$	2,148		$	15,872	$	(341	)		4,252		$	21,931
Company’s equity in (losses) earnings of unconsolidated entities (3)	$	(20,000	)	$	7,934	$	464		$	600		$	(11,002	)

(3) Differences between the Company’s equity in earnings (losses) of unconsolidated entities and the underlying net income (loss) of the entities is primarily a result of impairments related to the Company’s investment in unconsolidated entities, distributions from entities in excess of the carrying amount of the Company’s net investment, and the Company’s share of the entities’ profits related to home sites purchased by the Company which reduces the Company’s cost basis of the home sites.

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5. Investments in Non-Performing Loan Portfolios and Foreclosed Real Estate

In December 2011, Gibraltar acquired a portfolio of non-performing loans consisting of 11 loans with an unpaid principal balance of approximately $51.4 million. The portfolio includes non-performing loans secured primarily by commercial land and buildings in various stages of completion.

The following table summarizes for the portfolios acquired the accretable yield and the nonaccretable difference on our investments in those non-performing loans portfolios as of their acquisition dates (amounts in thousands).

		September 30,
	Three months ended January 31, 2012
Contractually required payments, including interest	$	52,524
Nonaccretable difference		(5,125	)
Cash flows expected to be collected		47,399
Accretable difference		(20,514	)
Non-performing loans carrying amount	$	26,885

The Company’s investment in non-performing loan portfolios consisted of the following as of the dates indicated (amounts in thousands):

		September 30,			September 30,
	January 31, 2012			October 31, 2011
Unpaid principal balance	$	216,620		$	171,559
Discount on acquired loans		(126,286	)		(108,325	)
Carrying value	$	90,334		$	63,234

The Company’s earnings from the portfolios and management fees earned are included in interest and other income in its condensed consolidated statements of operations. In the three-month period ended January 31, 2012, the Company recognized $2.1 million of earnings from its investments in the loan portfolios.

The activity in the accretable yield for the Company’s investment in the non-performing loan portfolios for the three months ended January 31, 2012 was as follows (amounts in thousands):

		September 30,
Balance at October 31, 2011	$	42,326
Additions		20,514
Accretion		(3,228	)
Reductions from foreclosures and other dispositions		(1,648	)
Other		(120	)
Balance at January 31, 2012	$	57,844

The additions to accretable yield and the accretion of interest income are based on various estimates regarding loan performance and the value of the underlying real estate securing the loans. As the Company continues to obtain updated information regarding the loans and the underlying collateral, the accretable yield may change. Therefore, the amount of accretable income recorded in the three month period ended January 31, 2012 is not necessarily indicative of expected future results.

6. Subsequent Event/Senior Notes Payable

On February 7, 2012, the Company, through Toll Brothers Finance Corp., issued $300 million principal amount of 5.875% Senior Notes due 2022 (the “5.875% Senior Notes”). The Company received $296.2 million of net proceeds from the issuance of the 5.875% Senior Notes.

On March 5, 2012, the Company, through Toll Brothers Finance Corp., issued an additional $119.9 million principal amount of its 5.875% Senior Notes in exchange for $80.7 million principal amount of its 6.875% Senior Notes due 2012 and for $36.9 million principal amount of its 5.95% Senior Notes due 2013. The Company expects to recognize a charge of approximately $1.1 million in the quarter ending April 30, 2012 representing the aggregate costs associated with the exchange of both series of notes.

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7. Accrued Expenses

Accrued expenses at January 31, 2012 and October 31, 2011 consisted of the following (amounts in thousands):

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Land, land development and construction	$	103,955	$	109,574
Compensation and employee benefit		91,016		96,037
Insurance and litigation		127,260		130,714
Commitments to unconsolidated entities		2,609		60,130
Warranty		43,109		42,474
Interest		29,611		25,968
Other		53,854		56,154
	$	451,414	$	521,051

The Company accrues for expected warranty costs at the time each home is closed and title and possession are transferred to the home buyer. Costs are accrued based upon historical experience. The table below provides, for the periods indicated, a reconciliation of the changes in the Company’s warranty accrual (amounts in thousands):

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Balance, beginning of period	$	42,474		$	45,835
Additions – homes closed during the period		1,871			1,929
Addition – liabilities acquired		731
Increase (decrease) in accruals for homes closed in prior periods		1,783			(66	)
Charges incurred		(3,750	)		(1,770	)
Balance, end of period	$	43,109		$	45,928

8. Income Taxes

The table below provides, for the periods indicated, a reconciliation of the Company’s effective tax rate from the federal statutory tax rate (amounts in thousands).

		September 30,			September 30,			September 30,			September 30,
	Three months ended January 31,
	2012						2011
	$			%*			$			%*
Federal tax (benefit) provision at statutory rate		(2,243	)		(35.0	)		(5,966	)		(35.0	)
State taxes, net of federal benefit		(271	)		(4.2	)		(554	)		(3.3	)
Reversal of state tax provisions – finalization of audits								(2,340	)		(13.7	)
Increase in unrecognized tax benefits		1,500			23.4
Reversal of accrual for uncertain tax positions		(5,279	)		(82.4	)		(17,954	)		(105.3	)
Increase in deferred tax assets – net		(525	)		(8.2	)
Valuation allowance – recognized		4,089			63.8			7,027			41.2
Valuation allowance – reversed		(2,843	)		(44.3	)		(1,260	)		(7.4	)
Accrued interest on anticipated tax assessments		1,950			30.4			813			4.8
Other								(230	)		(1.3	)
Tax provision (benefit)		(3,622	)		(56.5	)		(20,464	)		(120.0	)

* Due to rounding, amounts may not add.

14

The Company currently operates in 20 states and is subject to various state tax jurisdictions. The Company estimates its state tax liability based upon the individual taxing authorities’ regulations, estimates of income by taxing jurisdiction and the Company’s ability to utilize certain tax-saving strategies. Due primarily to a change in the Company’s estimate of the allocation of income or loss, as the case may be, among the various taxing jurisdictions and changes in tax regulations and their impact on the Company’s tax strategies, the Company’s estimated rate for state income taxes was 6.5% and 5.0% for fiscal 2012 and 2011, respectively.

The Company recognizes in its tax benefit potential interest and penalties. Information as to the amounts recognized in its tax benefit, before reduction for applicable taxes and reversal of previously accrued interest and penalties, of potential interest and penalties in the three-month periods ended January 31, 2012 and 2011, and the amounts accrued for potential interest and penalties at January 31, 2012 and October 31, 2011 are set forth in the table below (amounts in thousands).

		September 30,
Recognized in statements of operations:
Three-month period ended January 31, 2012	$	3,000
Three-month period ended January 31, 2011	$	1,250
Accrued at:
January 31, 2012	$	29,500
October 31, 2011	$	29,200

The table below provides, for the periods indicated, a reconciliation of the change in the unrecognized tax benefits (amounts in thousands).

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Balance, beginning of period	$	104,669		$	160,446
Increase in benefit as a result of tax positions taken in prior years		4,500			1,250
Decrease in benefit as a result of resolution of uncertain tax positions		(4,000	)		(17,954	)
Decrease in benefit as a result of completion of tax audits		(4,122	)		(3,600	)
Balance, end of period	$	101,047		$	140,142

The Company’s unrecognized tax benefits are included in “Income taxes payable” on the Company’s Condensed Consolidated Balance Sheets. If these unrecognized tax benefits reverse in the future, they would have a beneficial impact on the Company’s effective tax rate at that time. During the next twelve months, it is reasonably possible that the amount of unrecognized tax benefits will change. The anticipated changes will be principally due to expiration of tax statutes, settlements with taxing jurisdictions, increases due to new tax positions taken and the accrual of estimated interest and penalties.

The Company is allowed to carry forward tax losses for 20 years and apply such tax losses to future taxable income to realize federal deferred tax assets. As of January 31, 2012, the Company estimates that it will have approximately $52.0 million of tax loss carryforwards, resulting from losses that it expects to recognize on its fiscal 2011 tax return. In addition, the Company expects to be able to reverse previously recognized valuation allowances against future tax provisions during any future period for which it reports book income before income taxes. The Company will continue to review its deferred tax assets in accordance with ASC 740.

At January 31, 2012 and October 31, 2011, the Company had recorded cumulative valuation allowances against its entire net deferred federal tax asset of $354.6 million and $353.4 million, respectively.

For state tax purposes, due to past and projected losses in certain jurisdictions where the Company does not have carryback potential and/or cannot sufficiently forecast future taxable income, the Company has recognized net cumulative valuation allowances against its state deferred tax assets of $74.0 million as of January 31, 2012. In 2011, the Company took steps to merge a number of entities to better align financial and tax reporting and to reduce administrative complexity going forward. Some of these mergers occurred in higher state tax jurisdictions creating additional state tax deferred assets of $28.9 million, offset entirely by an increase in the state tax valuation allowance. Future valuation allowances in these jurisdictions may continue to be recognized if the Company believes it will not generate sufficient future taxable income to utilize any future state deferred tax assets.

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9. Stock-Based Benefit Plans

The Company grants stock options, restricted stock and various types of restricted stock units to its employees and its non-employee directors. Beginning in fiscal 2012, the Company changed the mix of stock-based compensation to its employees by reducing the number of stock options it grants and, in their place, issued non-performance based restricted stock units as a form of compensation. The Company also has an employee stock purchase plan that allows employees to purchase Company stock at a discount. In the three-month period ended January 31, 2012, the Company issued 941,678 shares under its stock-based benefit plans.

Information regarding the amount of total stock-based compensation expense recognized by the Company, for the periods indicated, is as follows (amounts in thousands):

		September 30,		September 30,
	2012		2011
Three months ended January 31:	$	5,626	$	5,373

At January 31, 2012 and October 31, 2011, the aggregate unamortized value of outstanding stock-based compensation awards was approximately $23.3 million and $12.7 million, respectively.

Due to the losses recognized by the Company over the past several years and its inability to forecast future pre-tax profits, the Company has not recognized a tax benefit on its stock-based compensation expense in the fiscal 2012 and 2011 periods.

Information about the Company’s more significant stock-based compensation programs is outlined below.

Stock Options:

The fair value of each option award is estimated on the date of grant using a lattice-based option valuation model that uses assumptions noted in the following table. The lattice-based option valuation model incorporates ranges of assumptions for inputs, which are disclosed in the table below. Expected volatilities were based on implied volatilities from traded options on the Company’s stock, historical volatility of the Company’s 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 range given below results 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 weighted-average assumptions and the fair value used for stock option grants in fiscal 2012 and 2011 were as follows:

	September 30,	September 30,
	2012	2011
Expected volatility	44.20% – 50.24%	45.38% – 49.46%
Weighted-average volatility	46.99%	47.73%
Risk-free interest rate	0.78% – 1.77%	1.64% – 3.09%
Expected life (years)	4.59 – 9.06	4.29 – 8.75
Dividends	none	none
Number of options issued (in thousands)
Weighted-average grant date fair value per share of options granted	$8.70	$7.94

Stock compensation expense, related to stock options, for the periods indicated, was as follows (amounts in thousands):

		September 30,		September 30,
	2012		2011
Three months ended January 31:	$	3,522	$	4,588

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Performance-Based Restricted Stock Units:

In December 2011, the Executive Compensation Committee of the Company’s Board of Directors approved awards of performance-based restricted stock units (“Performance-Based RSUs”) relating to shares of the Company’s common stock to certain of its senior management. The use of Performance-Based RSUs replaced the use of stock price-based restricted stock units awarded in prior years. The Performance-Based RSUs are based on the attainment of certain performance metrics of the Company in fiscal 2012. The number of shares underlying the Performance-Based RSUs that will be issued to the recipients may range from 90% to 110% of the base award depending on actual performance metrics as compared to the target performance metrics. The Performance-Based RSUs vest over a four-year period; provided the recipients continue to be employed by the Company or serve on the board of directors of the Company (as applicable) 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 the Company’s common stock to be issued multiplied by the closing price of the Company’s common stock on the NYSE on the date the Performance-Based RSUs were awarded. The Company evaluates the performance-based metrics quarterly and estimates the number of shares underlying the RSUs that will be issued. Information regarding the issuance, valuation assumptions and amortization of the Company’s Performance-Based RSUs issued in fiscal 2012 is as follows:

		September 30,
	2012
Estimated number to be issued		350,000
Closing price of the Company’s common stock on date of issuance	$	20.50
Estimated aggregate fair value of Performance-Based RSUs issued (in thousands)	$	7,185
Performance-Based RSU expense recognized in the three months ended January 31, 2012 (in thousands):	$	936
Unamortized value of Performance-Based RSUs at January 31, 2012 (in thousands):	$	6,249

Stock Price-Based Restricted Stock Units:

In each of December 2010, 2009 and 2008, the Executive Compensation Committee of the Company’s Board of Directors approved awards of market performance-based restricted stock units (“Stock Price-Based RSUs”) relating to shares of the Company’s common stock. The Stock Price-Based RSUs will vest and the recipients will be entitled to receive the underlying shares if the average closing price of the Company’s common stock on the New York Stock Exchange (“NYSE”), measured over any 20 consecutive trading days ending on or prior to five years from date of issuance of the Stock Price-Based RSUs increases 30% or more over the closing price of the Company’s common stock on the NYSE on the date of issuance (“Target Price”), provided the recipients continue to be employed by the Company or serve on the board of directors of the Company (as applicable) as specified in the award document. The Company determined the aggregate value of the Stock Price-Based RSUs using a lattice-based option pricing model.

Information regarding the amortization of the Company’s Stock Price-Based RSUs, for the periods indicated, is as follows (amounts in thousands):

		September 30,
Three months ended January 31, 2012	$	848
Three months ended January 31, 2011	$	752

Information regarding the aggregate number of outstanding Stock Price-Based RSUs and aggregate unamortized value of the outstanding Stock Price-Based RSUs, as of the date indicated, is as follows:

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Aggregate outstanding Stock Price-Based RSUs		706,000		706,000
Cumulative unamortized value of Stock Price-Based RSUs (in thousands)	$	4,081	$	4,929

17

Non-Performance Based Restricted Stock Units:

In December 2011 and 2010, the Company issued restricted stock units (“RSUs”). These RSUs generally vest in annual installments over a four-year period. The value of the RSUs was determined to be equal to the number of shares of the Company’s common stock to be issued pursuant to the RSUs, multiplied by the closing price of the Company’s common stock on the NYSE on the date the RSUs were awarded. Information regarding these RSUs is as follows:

		September 30,		September 30,
	2012		2011
Number of RSUs issued		107,820		15,497
Closing price of the Company’s common stock on date of issuance	$	20.50	$	19.32
Aggregate fair value of RSUs issued (in thousands)	$	2,210	$	299

Information regarding the amortization of the Company’s RSUs, for the periods indicated, is as follows (amounts in thousands):

		September 30,		September 30,
	2012		2011
Three months ended January 31:	$	314	$	27

Information regarding the aggregate number of outstanding RSUs and aggregate unamortized value of the outstanding RSUs, as of the date indicated, is as follows:

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Aggregate outstanding RSUs		138,814		30,994
Cumulative unamortized value of RSUs (in thousands)	$	2,275	$	379

10. Employee Retirement Plans

The Company has two unfunded supplemental retirement plans (“SERPs”) for certain employees. The table below provides, for the periods indicated, costs recognized and payments made related to its SERPs (amounts in thousands):

		September 30,		September 30,
	Three months  ended January 31,
	2012		2011
Service cost	$	97	$	76
Interest cost		303		323
Amortization of prior service obligation		184		173
Amortization of unrecognized losses		17
Total costs	$	601	$	572
Benefits paid	$	115	$	34

18

11. Accumulated Other Comprehensive Loss and Total Comprehensive (Loss) Income

Accumulated other comprehensive loss at January 31, 2012 and January 31, 2011 was primarily related to employee retirement plans.

The table below provides, for the periods indicated, the components of total comprehensive (loss) income (amounts in thousands):

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Net (loss) income as reported	$	(2,786	)	$	3,417
Changes in pension liability		(109	)		173
Change in fair value of available-for-sale securities		243			64
Unrealized loss on derivative held by equity investee		(795	)
Comprehensive (loss) income	$	(3,447	)	$	3,654

12. Stock Repurchase Program

In March 2003, the Company’s Board of Directors authorized the repurchase of up to 20 million shares of its common stock, par value $.01, from time to time, in open market transactions or otherwise, for the purpose of providing shares for its various employee benefit plans. The table below provides, for the periods indicated, information about the Company’s share repurchase program.

		September 30,		September 30,
	Three months ended January 31,
	2012		2011
Number of shares purchased		3,000		8,000
Average price per share	$	20.61	$	19.23
Remaining authorization at January 31 (in thousands):		8,783		11,822

13. (Loss) Income per Share Information

The table below provides, for the periods indicated, information pertaining to the calculation of (loss) income per share, common stock equivalents, weighted average number of anti-dilutive option and shares issued (amounts in thousands):

		September 30,		September 30,
	Three months ended January 31,
	2012		2011
Basic weighted-average shares		166,311		166,677
Common stock equivalents (a)		—		1,444
Diluted weighted-average shares		166,311		168,121
Common stock equivalents excluded from diluted weighted-average shares due to anti-dilutive effect (a)		796		—
Weighted average number of anti-dilutive options (b)		5,906		8,383
Shares issued under stock incentive and employee stock purchase plans		942		414

(a) Common stock equivalents represent the dilutive effect of outstanding in-the-money stock options. For the three-month period ended January 31, 2012, there were no incremental shares attributed to outstanding options to purchase common stock because the Company had a net loss in the period and any incremental shares would be anti-dilutive.

(b) Based upon the average closing price of the Company’s common stock on the NYSE for the period.

19

14. Fair Value Disclosures

The table below provides, as of the date indicated, a summary of assets (liabilities) related to the Company’s financial instruments, measured at fair value on a recurring basis (amounts in thousands).

	September 30,		September 30,			September 30,
		Fair value
Financial Instrument	Fair value hierarchy	January 31, 2012			October 31, 2011
Corporate Securities	Level 1	$	143,729		$	233,572
Residential Mortgage Loans Held for Sale	Level 2	$	36,911		$	63,175
Forward Loan Commitments—Residential Mortgage Loans Held for Sale	Level 2	$	(96	)	$	218
Interest Rate Lock Commitments (“IRLCs”)	Level 2	$	85		$	(147	)
Forward Loan Commitments—IRLCs	Level 2	$	(85	)	$	147

At January 31, 2012 and October 31, 2011, the carrying value of cash and cash equivalents and restricted cash approximated fair value.

At the end of the reporting period, the Company determines the fair value of its mortgage loans held for sale and the forward loan commitments it has entered into as a hedge against the interest rate risk of its 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 by applying such pricing to the mortgage loan portfolio. The Company recognizes the difference between the fair value and the unpaid principal balance of mortgage loans held for sale as a gain or loss. In addition, the Company recognizes the fair value of its forward loan commitments as a gain or loss. These gains and losses are included in interest and other income. Interest income on mortgage loans held for sale is calculated based upon the stated interest rate of each loan and is included in “interest and other income”.

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

		September 30,		September 30,		September 30,
	Aggregate unpaid principal balance		Fair value		Excess
At January 31, 2012	$	36,532	$	36,911	$	379
At October 31, 2011	$	62,765	$	63,175	$	410

IRLCs represent individual borrower agreements that commit the Company 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. The Company utilizes 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 the Company agrees 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. The Company estimates 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. To manage the risk of non-performance of investors regarding the Forward Commitments, the Company assesses the credit worthiness of the investors on a periodic basis.

The table below provides, as of the date indicated, the amortized cost, gross unrealized holding gains, gross unrealized holding losses and fair value of marketable securities (amounts in thousands).

		September 30,			September 30,
	January 31, 2012			October 31, 2011
Amortized cost	$	143,766		$	233,852
Gross unrealized holding gains		46			28
Gross unrealized holding losses		(83	)		(308	)
Fair value	$	143,729		$	233,572

20

The remaining contractual maturities of marketable securities as of January 31, 2012 ranged from less than one month to nine months.

The Company recognizes 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. See Note 1, “Significant Accounting Policies, Inventory” for additional information regarding the Company’s methodology on determining fair value. The table below provides, for the periods indicated, the fair value of inventory whose carrying value was adjusted and the amount of impairment charges recognized (amounts in thousands).

		September 30,		September 30,
	Fair value of inventory, net of impairment		Impairment charges recognized
Three months ended:
January 31, 2012	$	49,758	$	6,425
January 31, 2011	$	56,105	$	5,475

Gibraltar’s portfolio of non-performing loans was recorded at fair value at inception based on the acquisition price as determined by Level 3 inputs. The estimated fair value was determined using Level 3 inputs and was based on discounted future cash flows generated by the loans discounted at the rates used to value the portfolios at the acquisition dates. The table below provides, as of the date indicated, the carrying amount and estimated fair value of the non-performing loan portfolios (amounts in thousands).

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Carrying amount	$	90,334	$	63,234
Estimated fair value	$	91,667	$	64,539

The table below provides, as of the date indicated, the book value and estimated fair value of the Company’s debt (amounts in thousands).

		September 30,		September 30,		September 30,		September 30,
	January 31, 2012				October 31, 2011
	Book value		Estimated fair value		Book value		Estimated fair value
Loans payable (a)	$	93,279	$	88,137	$	106,556	$	98,950
Senior notes (b)		1,499,371		1,634,469		1,499,371		1,614,010
Mortgage company warehouse loan (c)		31,864		31,864		57,409		57,409
	$	1,624,514	$	1,754,470	$	1,663,336	$	1,770,369

(a) The estimated fair value of loans payable was based upon their indicated market prices or the interest rates that the Company believed were available to it for loans with similar terms and remaining maturities as of the applicable valuation date.

(b) The estimated fair value of the Company’s senior notes is based upon their indicated market prices.

(c) The Company believes that the carrying value of its mortgage company loan borrowings approximates their fair value.

15. Interest and Other Income

Interest and other income includes the activity of the Company’s non-core ancillary businesses which include its mortgage, title, landscaping, security monitoring, structured loan and non-performing portfolio group and golf course and country club operations. The table below provides, for the periods indicated, revenues and expenses for the Company’s non-core ancillary businesses (amounts in thousands).

		September 30,		September 30,
	Three months ended January 31,
	2012		2011
Revenue	$	17,311	$	13,823
Expense	$	14,089	$	13,266

21

16. Legal Proceedings

The Company is involved in various claims and litigation arising principally in the ordinary course of business.

In January 2006, the Company received a request for information pursuant to Section 308 of the Clean Water Act from Region 3 of the U.S. Environmental Protection Agency (“EPA”) concerning storm water discharge practices in connection with its homebuilding projects in the states that comprise EPA Region 3. The Company provided information to the EPA pursuant to the request. The U.S. Department of Justice (“DOJ”) has assumed responsibility for the oversight of this matter and has alleged that the Company has violated regulatory requirements applicable to storm water discharges and that it may seek injunctive relief and/or civil penalties. The Company is presently engaged in settlement discussions with representatives from the DOJ and the EPA.

On November 4, 2008, a shareholder derivative action was filed in the Chancery Court of Delaware by Milton Pfeiffer against Robert I. Toll, Zvi Barzilay, Joel H. Rassman, Bruce E. Toll, Paul E. Shapiro, Robert S. Blank, Carl B. Marbach, and Richard J. Braemer. The plaintiff purports to bring his claims on behalf of Toll Brothers, Inc. and alleges that the director and officer defendants breached their fiduciary duties to the Company and its stockholders with respect to their sales of shares of the Company’s common stock during the period beginning on December 9, 2004 and ending on November 8, 2005. The plaintiff alleges that such stock sales were made while in possession of non-public, material information about the Company. The plaintiff seeks contribution and indemnification from the individual director and officer defendants for costs and expenses incurred by us in connection with defending a now-settled related class action. In addition, again purportedly on the Company’s behalf, the plaintiff seeks disgorgement of the defendants’ profits from their stock sales.

On March 4, 2009, a second shareholder derivative action was brought by Oliverio Martinez in the U.S. District Court for the Eastern District of Pennsylvania. The case was brought against the eleven then-current members of the Company’s board of directors and its Chief Accounting Officer. This complaint alleges breaches of fiduciary duty, waste of corporate assets, and unjust enrichment during the period from February 2005 to November 2006. The complaint further alleges that certain of the defendants sold the Company’s stock during this period while in possession of allegedly non-public, material information and plaintiff seeks disgorgement of profits from these sales. The complaint also asserts a claim for equitable indemnity for costs and expenses incurred by the Company in connection with a now-settled related class action lawsuit.

On April 1, 2009, a third shareholder derivative action was filed by William Hall, also in the U.S. District Court for the Eastern District of Pennsylvania, against the eleven then-current members of the Company’s board of directors and its Chief Accounting Officer. This complaint is identical to the previous shareholder complaint filed in Philadelphia and, on July 14, 2009, the two cases were consolidated. On April 30, 2010, the plaintiffs filed an amended consolidated complaint.

The Company’s Certificate of Incorporation and Bylaws provide for indemnification of its directors and officers. The Company has also entered into individual indemnification agreements with each of its directors.

Due to the high degree of judgment required in determining the amount of potential loss related to the various claims and litigation in which the Company is involved, including those noted above, and the inherent variability in predicting future settlements and judicial decisions, the Company cannot estimate a range of reasonably possible losses in excess of its accruals for these matters. The Company believes that adequate provision for resolution of all claims and pending litigation has been made for probable losses and the disposition of these matters will not have a material adverse effect on the Company’s results of operations and liquidity or on its financial condition.

17. Commitments and Contingencies

Land Purchase Commitments

Generally, the Company’s option and purchase agreements to acquire land parcels do not require the Company to purchase those land parcels, although the Company may, in some cases, forfeit any deposit balance outstanding if and when it terminates an option and purchase agreement. If market conditions are weak, approvals needed to develop the land are uncertain or other factors exist that make the purchase undesirable, the Company may not expect to acquire the land. Whether an option and purchase agreement is legally terminated or not, the Company reviews the amount recorded for the land parcel subject to the option and purchase agreement to determine if the amount is recoverable. While the Company may not have formally terminated the option and purchase agreements for those land parcels that it does not expect to acquire, it has written off any non-refundable deposits and costs previously capitalized to such land parcels in the periods that it determined such costs were not recoverable.

22

Information regarding the Company’s purchase commitments, as of the date indicated, is provided in the table below (amounts in thousands).

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Aggregate purchase commitments:
Unrelated parties	$	539,636	$	551,905
Unconsolidated entities that the Company has investments in		124,387		12,471
Total	$	664,023	$	564,376
Deposits against aggregate purchase commitments	$	32,199	$	37,987
Credit to be received from amounts previously contributed to unconsolidated entities		75,600
Additional cash required to acquire land		556,224		526,389
Total	$	664,023	$	564,376

The Company has additional land parcels under option that have been excluded from the aforementioned aggregate purchase amounts since it does not believe that it will complete the purchase of these land parcels and no additional funds will be required from the Company to terminate these contracts.

Investments in and Advances to Unconsolidated Entities

See Note 4, “Investments in and Advances to Unconsolidated Entities,” for more information regarding the Company’s commitments to these entities.

Surety Bonds and Letters of Credit

At January 31, 2012, the Company had outstanding surety bonds amounting to $367.1 million, primarily related to its obligations to various governmental entities to construct improvements in the Company’s various communities. The Company estimates that $206.6 million of work remains on these improvements. The Company has an additional $65.7 million of surety bonds outstanding that guarantee other obligations of the Company. The Company does not believe it is probable that any outstanding bonds will be drawn upon.

At January 31, 2012, the Company had outstanding letters of credit of $83.5 million, including $70.2 million under its credit facility and $13.3 million collateralized by restricted cash. These letters of credit were issued to secure various financial obligations of the Company including insurance policy deductibles and other claims, land deposits and security to complete improvements in communities which it is operating. The Company believes it is not probable that any outstanding letters of credit will be drawn upon.

Backlog

At January 31, 2012, the Company had agreements of sale outstanding to deliver 1,784 homes with an aggregate sales value of $1.1 billion.

Mortgage Commitments

The Company’s mortgage subsidiary provides mortgage financing for a portion of the Company’s home closings. For those home buyers to whom the Company’s mortgage subsidiary provides mortgages, it determines whether the home buyer qualifies for the mortgage he or she is seeking based upon information provided by the home buyer and other sources. For those home buyers that qualify, the Company’s 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, the Company’s mortgage subsidiary agrees to sell the proposed mortgage loan to one of several outside recognized mortgage financing institutions (“investors”), which is willing to honor the terms and conditions, including interest rate, committed to the home buyer. The Company believes that these investors have adequate financial resources to honor their commitments to its mortgage subsidiary.

23

Information regarding the Company’s mortgage commitments, as of the date indicated, is provided in the table below (amounts in thousands).

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Aggregate mortgage loan commitments:
IRLCs	$	92,623	$	129,553
Non-IRLCs		342,633		306,722
Total	$	435,256	$	436,275
Investor commitments to purchase:
IRLCs	$	92,623	$	129,553
Mortgage loans receivable		34,385		60,680
Total	$	127,008	$	190,233

18. Geographic Segments

Revenue and (loss) income before income taxes for each of the Company’s geographic segments, for the periods indicated, were as follows (amounts in thousands):

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Revenue:
North	$	75,580		$	82,497
Mid-Atlantic		100,799			103,815
South		76,466			61,903
West		69,110			85,901
Total	$	321,955		$	334,116
(Loss) income before income taxes:
North	$	1,201		$	7,068
Mid-Atlantic		10,642			8,088
South		(2,077	)		(1,348	)
West		5,603			(15,240	)
Corporate and other		(21,777	)		(15,615	)
Total	$	(6,408	)	$	(17,047	)

“Corporate and other” is comprised principally of general corporate expenses such as the Offices of the Executive Chairman, the Chief Executive Officer and President, and the corporate finance, accounting, audit, tax, human resources, risk management, marketing and legal groups, directly expensed interest, interest income and income from the Company’s ancillary businesses and income (loss) from a number of its unconsolidated entities.

Total assets for each of the Company’s geographic segments, as of the date indicated, are shown in the table below (amounts in thousands).

		September 30,		September 30,
	January 31, 2012		October 31, 2011
North	$	1,102,276	$	1,060,215
Mid-Atlantic		1,305,586		1,235,847
South		771,461		760,097
West		785,085		650,844
Corporate and other		1,010,494		1,348,243
Total	$	4,974,902	$	5,055,246

Corporate and other is comprised principally of cash and cash equivalents, marketable securities, restricted cash, the assets of the Company’s manufacturing facilities and mortgage subsidiary, and its Gibraltar investments.

24

The Company provided for inventory impairment charges and the expensing of costs that it believed not to be recoverable and write-downs of its investments in unconsolidated entities (including its pro-rata share of impairment charges recognized by the unconsolidated entities in which it has an investment) for the periods indicated, is shown in the table below; the net carrying value of inventory and investments in and advances to unconsolidated entities for each of the Company’s geographic segments, as of the date indicated, is also shown (amounts in thousands).

		September 30,		September 30,		September 30,			September 30,
	Net Carrying Value				Three months ended
	At January 31,		At October 31,		January 31,
	2012		2011		2012			2011
Inventory:
Land controlled for future communities:
North	$	11,462	$	19,390	$	24		$	158
Mid-Atlantic		22,045		21,592		199			66
South		5,016		3,812		555			306
West		4,692		1,787		(1	)		(879	)
		43,215		46,581		777			(349	)
Land owned for future communities:
North		244,835	$	231,085
Mid-Atlantic		473,981		455,818
South		132,936		125,461		918
West		216,995		166,781
		1,068,747		979,145		918			—
Operating communities:
North		764,010		738,473		2,265			1,275
Mid-Atlantic		682,497		659,081
South		551,990		539,582		4,160
West		544,641		453,861					4,200
		2,543,138		2,390,997		6,425			5,475
Total	$	3,655,100	$	3,416,723	$	8,120		$	5,126
Investments in and advances to unconsolidated entities:
North	$	119,389	$	40,734
South		30,746		32,000
West		8,592		17,098				$	20,000
Corporate		34,899		36,523
Total	$	193,626	$	126,355	$	—		$	20,000

25

19. Supplemental Disclosure to Statements of Cash Flows

The following are supplemental disclosures to the statements of cash flows for the three months ended January 31, 2012 and 2011 (amounts in thousands):

		September 30,			September 30,
	2012			2011
Cash flow information:
Interest paid, net of amount capitalized				$	587
Interest capitalized, net of amount paid	$	766
Income tax payment	$	2,093
Income tax refunds				$	381
Non-cash activity:
Cost of inventory acquired through seller financing municipal bonds or recorded due to VIE criteria, net	$	431		$	21,584
Increase in SERP benefits	$	310
Miscellaneous (decreases) increases to inventory	$	(75	)	$	2,137
Reclassification of inventory to property, construction and office equipment				$	20,005
(Increase) reduction of investments in unconsolidated entities due to increase/reduction in letters of credit or accrued liabilities	$	(26	)	$	19,106
Transfer of inventory to investment in non-performing loan portfolios and foreclosed real estate	$	802
Transfer of inventory to investment in unconsolidated entities	$	5,793
Unrealized loss on derivative held by equity investee	$	795
Miscellaneous (decreases) increases to investments in unconsolidated entities	$	(18	)	$	540
Acquisition of a Business:
Fair value of assets purchased	$	149,959
Liabilities assumed	$	5,213
Cash paid	$	144,746

20. Supplemental Guarantor Information

A 100% owned subsidiary of the Company, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), issued $300 million of 6.875% Senior Notes due 2012 on November 22, 2002; $250 million of 5.95% Senior Notes due 2013 on September 3, 2003; $300 million of 4.95% Senior Notes due 2014 on March 16, 2004; $300 million of 5.15% Senior Notes due 2015 on June 2, 2005; $400 million of 8.91% Senior Notes due 2017 on April 13, 2009; and $250 million of 6.75% Senior Notes due 2019 on September 22, 2009. Through January 31, 2012, the Subsidiary Issuer has redeemed $160.2 million of its 6.875% Senior Notes due 2012, $108.4 million of its 5.95% Senior Notes due 2013 and $32.0 million of its 4.95% Senior Notes due 2014. The obligations of the Subsidiary Issuer to pay principal, premiums, if any, and interest is guaranteed jointly and severally on a senior basis by the Company and substantially all of the Company’s 100% owned home building subsidiaries (the “Guarantor Subsidiaries”). The guarantees are full and unconditional. The Company’s non-home building subsidiaries and several of its home building subsidiaries (the “Non-Guarantor Subsidiaries”) do not guarantee the debt. 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. Prior to the above described senior debt issuances, the Subsidiary Issuer did not have any operations.

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

26

Condensed Consolidating Balance Sheet at January 31, 2012

	Toll								Non-
	Brothers,			Subsidiary		Guarantor			Guarantor
	Inc.			Issuer		Subsidiaries			Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents							441,916			133,778						575,694
Marketable securities							143,729									143,729
Restricted cash		28,307					18,434			1,500						48,241
Inventory							3,496,927			158,173						3,655,100
Property, construction and office equipment, net							98,408			3,091						101,499
Receivables, prepaid expenses and other assets					6,444		75,622			17,827			(1,702	)		98,191
Mortgage loans receivable										36,911						36,911
Customer deposits held in escrow							23,309			1,780						25,089
Investments in and advances to unconsolidated entities							77,473			116,153						193,626
Investments in non-performing loan portfolios and foreclosed real estate										96,822						96,822
Investments in and advances to consolidated entities		2,671,770			1,513,343		(943,024	)		(236,201	)		(3,005,888	)		—
		2,700,077			1,519,787		3,432,794			329,834			(3,007,590	)		4,974,902
LIABILITIES AND EQUITY
Liabilities:
Loans payable							92,079			1,200						93,279
Senior notes					1,491,442											1,491,442
Mortgage company warehouse loan										31,864						31,864
Customer deposits							93,356			3,978						97,334
Accounts payable							103,491			1,820						105,311
Accrued expenses					28,345		306,994			117,857			(1,782	)		451,414
Income taxes payable		102,276								(2,000	)					100,276
Total liabilities		102,276			1,519,787		595,920			154,719			(1,782	)		2,370,920
Equity:
Stockholders’ equity:
Common stock		1,687					3,054			2,003			(5,057	)		1,687
Additional paid-in capital		399,743					1,366			2,734			(4,100	)		399,743
Retained earnings		2,231,465					2,836,017			164,197			(3,000,214	)		2,231,465
Treasury stock, at cost		(31,531	)													(31,531	)
Accumulated other comprehensive loss		(3,563	)				(3,563	)					3,563			(3,563	)
Total stockholders’ equity		2,597,801			—		2,836,874			168,934			(3,005,808	)		2,597,801
Noncontrolling interest										6,181						6,181
Total equity		2,597,801			—		2,836,874			175,115			(3,005,808	)		2,603,982
		2,700,077			1,519,787		3,432,794			329,834			(3,007,590	)		4,974,902

27

Condensed Consolidating Balance Sheet at October 31, 2011

	Toll								Non-
	Brothers,			Subsidiary		Guarantor			Guarantor
	Inc.			Issuer		Subsidiaries			Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents							775,300			131,040						906,340
Marketable securities							233,572									233,572
Restricted cash							19,084			676						19,760
Inventory							2,911,211			505,512						3,416,723
Property, construction and office equipment, net							77,001			22,711						99,712
Receivables, prepaid expenses and other assets					6,768		74,980			26,067			(2,239	)		105,576
Mortgage loans receivable										63,175						63,175
Customer deposits held in escrow							10,682			4,177						14,859
Investments in and advances to unconsolidated entities							86,481			39,874						126,355
Investments in non-performing loan portfolios and foreclosed real estate										69,174						69,174
Investments in and advances to consolidated entities		2,694,419			1,508,550		(727,258	)		(467,395	)		(3,008,316	)		—
		2,694,419			1,515,318		3,461,053			395,011			(3,010,555	)		5,055,246
LIABILITIES AND EQUITY
Liabilities:
Loans payable							61,994			44,562						106,556
Senior notes					1,490,972											1,490,972
Mortgage company warehouse loan										57,409						57,409
Customer deposits							71,388			12,436						83,824
Accounts payable							96,645			172						96,817
Accrued expenses					24,346		320,021			178,965			(2,281	)		521,051
Income taxes payable		108,066								(2,000	)					106,066
Total liabilities		108,066			1,515,318		550,048			291,544			(2,281	)		2,462,695
Equity:
Stockholders’ equity:
Common stock		1,687					3,054			2,003			(5,057	)		1,687
Additional paid-in capital		400,382					1,366			2,734			(4,100	)		400,382
Retained earnings		2,234,251					2,909,487			92,532			(3,002,019	)		2,234,251
Treasury stock, at cost		(47,065	)													(47,065	)
Accumulated other comprehensive loss		(2,902	)				(2,902	)					2,902			(2,902	)
Total stockholders’ equity		2,586,353			—		2,911,005			97,269			(3,008,274	)		2,586,353
Noncontrolling interest										6,198						6,198
Total equity		2,586,353			—		2,911,005			103,467			(3,008,274	)		2,592,551
		2,694,419			1,515,318		3,461,053			395,011			(3,010,555	)		5,055,246

28

Condensed Consolidating Statement of Operations for the three months ended January 31, 2012 ($ in thousands):

	Toll									Non-
	Brothers,			Subsidiary			Guarantor			Guarantor
	Inc.			Issuer			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Revenues								327,692			12,386		(18,123	)		321,955
Cost of revenues								271,277			2,281		(1,950	)		271,608
Selling, general and administrative		13			478			73,256			9,550		(13,660	)		69,637
Interest expense					25,286								(25,286	)		—
		13			25,764			344,533			11,831		(40,896	)		341,245
Loss from operations		(13	)		(25,764	)		(16,841	)		555		22,773			(19,290	)
Other
Income from unconsolidated entities								5,229			1,458					6,687
Interest and other		7			25,764			5,212			233		(25,021	)		6,195
Loss from subsidiaries		(6,402	)										6,402			—
Loss before income tax benefit		(6,408	)		—			(6,400	)		2,246		4,154			(6,408	)
Income tax (benefit) provision		(3,622	)					(3,618	)		1,269		2,349			(3,622	)
Net (loss) income		(2,786	)		—			(2,782	)		977		1,805			(2,786	)

Condensed Consolidating Statement of Operations for the three months ended January 31, 2011 ($ in thousands):

	Toll									Non-
	Brothers,			Subsidiary			Guarantor			Guarantor
	Inc.			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues								325,055			25,150			(16,089	)		334,116
Cost of revenues								269,275			15,947			(3,257	)		281,965
Selling, general and administrative		28			341			63,988			8,528			(11,634	)		61,251
Interest expense					25,845			1,112						(25,845	)		1,112
		28			26,186			334,375			24,475			(40,736	)		344,328
Loss (income) from operations		(28	)		(26,186	)		(9,320	)		675			24,647			(10,212	)
Other
(Loss) income from unconsolidated entities								6,521			(17,523	)					(11,002	)
Interest and other					26,186			(14,220	)		(1,538	)		(6,261	)		4,167
Loss from subsidiaries		(17,019	)											17,019			—
Loss before income tax benefit		(17,047	)		—			(17,019	)		(18,386	)		35,405			(17,047	)
Income tax benefit		(20,464	)					(22,359	)		(22,058	)		44,417			(20,464	)
Net income		3,417			—			5,340			3,672			(9,012	)		3,417

29

Condensed Consolidating Statement of Cash Flows for the three months ended January 31, 2012 ($ in thousands):

		000000			000000			000000			000000			000000			000000
	Toll									Non-
	Brothers,			Subsidiary			Guarantor			Guarantor
	Inc.			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash flow used in operating activities:
Net (loss) income		(2,786	)					(2,782	)		977			1,805			(2,786	)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization					794			4,419			16						5,229
Stock-based compensation		5,626															5,626
Income (loss) from unconsolidated entities								(7,729	)		1,042						(6,687	)
Distributions of earnings from unconsolidated entities								872									872
Income from non-performing loan portfolios and foreclosed real estate											(4,138	)					(4,138	)
Deferred tax benefit		(1,246	)														(1,246	)
Deferred tax valuation allowances		1,246															1,246
Inventory impairments and write-offs								8,120									8,120
Change in fair value of mortgage loans receivable and derivative instruments											346						346
Gain on marketable securities								(39	)								(39	)
Changes in operating assets and liabilities
Increase in inventory								(100,509	)		(7,959	)					(108,468	)
Origination of mortgage loans											(120,662	)					(120,662	)
Sale of mortgage loans											146,895						146,895
(Increase) decrease in restricted cash		(28,307	)					650			(824	)					(28,481	)
Decrease (increase) in receivables, prepaid expenses and other assets		22,096			(4,793	)		(177,441	)		174,480			(2,413	)		11,929
Increase (decrease) in customer deposits								9,291			(6,061	)					3,230
(Decrease) increase in accounts payable and accrued expenses		(109	)		3,999			(11,553	)		(60,072	)		608			(67,127	)
Decrease in income taxes payable		(5,790	)														(5,790	)
Net cash (used in) provided by operating activities		(9,270	)		—			(276,701	)		124,040			—			(161,931	)
Cash flow used in investing activities:
Purchase of property and equipment—net								(2,711	)		(829	)					(3,540	)
Sale and redemption of marketable securities								88,217									88,217
Investment in and advances to unconsolidated entities								(256	)		(71,528	)					(71,784	)
Return of investments in unconsolidated entities								15,333									15,333
Investment in non-performing loan portfolios and foreclosed real estate											(26,410	)					(26,410	)
Return of investments in non-performing loan portfolios and foreclosed real estate											3,702						3,702
Acquisition of a business								(144,746	)								(144,746	)
Net cash used in investing activities								(44,163	)		(95,065	)					(139,228	)
Cash flow (used in) provided by financing activities:
Proceeds from loans payable											199,139						199,139
Principal payments of loans payable								(12,520	)		(225,376	)					(237,896	)
Proceeds from stock-based benefit plans		9,334															9,334
Purchase of treasury stock		(64	)														(64	)
Net cash (used in) provided by financing activities		9,270						(12,520	)		(26,237	)					(29,487	)
Net decrease (increase) in cash and cash equivalents		—			—			(333,384	)		2,738			—			(330,646	)
Cash and cash equivalents, beginning of year								775,300			131,040						906,340
Cash and cash equivalents, end of year		—			—			441,916			133,778			—			575,694

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Condensed Consolidating Statement of Cash Flows for the three months ended January 31, 2011 ($ in thousands):

	Toll									Non-
	Brothers,			Subsidiary			Guarantor			Guarantor
	Inc.			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash flow from operating activities:
Net income		3,417						5,340			3,672			(9,012	)		3,417
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		28			807			3,239			313						4,387
Stock-based compensation		5,373															5,373
Impairments of investments in unconsolidated entities											20,000						20,000
Income from unconsolidated entities								(5,922	)		(3,076	)					(8,998	)
Distributions of earnings from unconsolidated entities								593			2,200						2,793
Inventory impairments and write-offs								5,126									5,126
Deferred tax benefit		(6,589	)														(6,589	)
Deferred tax valuation allowance		6,589															6,589
Change in fair value of mortgage loans receivable and derivative instruments											714						714
Changes in operating assets and liabilities
Decrease in inventory								(39,214	)		(81,661	)					(120,875	)
Origination of mortgage loans											(182,659	)					(182,659	)
Sale of mortgage loans											233,891						233,891
Decrease in restricted cash								8,498									8,498
Decrease (increase) in receivables, prepaid expenses and other assets		8,712			(3,709	)		(69,228	)		63,393			8,769			7,937
Increase (decrease) in customer deposits								(1,183	)		3,460						2,277
(Decrease) increase in accounts payable and accrued expenses		(608	)		2,902			(41,317	)		(207	)		243			(38,987	)
Decrease in income taxes payable		(20,082	)														(20,082	)
Net cash (used in) provided by operating activities		(3,160	)		—			(134,068	)		60,040			—			(77,188	)
Cash flow from investing activities:
Purchase of property and equipment								(1,189	)		(3,092	)					(4,281	)
Purchase of marketable securities								(119,238	)								(119,238	)
Sale of marketable securities								102,500									102,500
Return of investments from unconsolidated entities								6,305									6,305
Net cash used in investing activities								(11,622	)		(3,092	)					(14,714	)
Cash flow from financing activities:
Proceeds from loans payable											266,035						266,035
Principal payments of loans payable								(6,794	)		(322,960	)					(329,754	)
Proceeds from stock-based benefit plans		3,323															3,323
Purchase of treasury stock		(163	)														(163	)
Net cash (used in) provided by financing activities		3,160						(6,794	)		(56,925	)					(60,559	)
Net (decrease) increase in cash and cash equivalents		—			—			(152,484	)		23			—			(152,461	)
Cash and cash equivalents, beginning of period		—			—			930,387			108,673			—			1,039,060
Cash and cash equivalents, end of period		—			—			777,903			108,696			—			886,599

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (“MD&A”)

This discussion and analysis is based on, should be read with, and is qualified in its entirety by, the accompanying unaudited condensed consolidated financial statements and related notes, as well as our consolidated financial statements and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations as contained in our Annual Report on Form 10-K for the fiscal year ended October 31, 2011. It also should be read in conjunction with the disclosure under “Statement on Forward-Looking Information” in this report.

Unless otherwise stated, 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 cancelled during the relevant period, which includes contracts that were signed during the relevant period and in prior periods.

OVERVIEW

Financial Highlights

In the three-month period ended January 31, 2012, we recognized $322.0 million of revenues and reported a net loss of $2.8 million and a pre-tax loss of $6.4 million, as compared to $334.1 million of revenues, net income of $3.4 million and a pre-tax loss of $17.0 million in the three-month period ended January 31, 2011. Fiscal 2012 first quarter pre-tax loss included $8.1 million of inventory impairments and write-offs. Fiscal 2011 first quarter pre-tax loss included $5.1 million of inventory impairments and write-offs and a $20.0 million impairment charge related to our investments in unconsolidated entities. During the fiscal 2012 period we recognized an income tax benefit of $3.6 million, as compared to an income tax benefit of $20.5 million in the fiscal 2011 period.

Our Challenging Business Environment and Current Outlook

The ongoing downturn in the U.S. housing market, which began in the fourth quarter of our fiscal 2005, has been the longest and most severe since the Great Depression. The value of our net contracts signed in fiscal 2011 was $1.60 billion, a decline of 78% from the $7.15 billion of net contracts signed in fiscal 2005. The downturn, which we believe started with a decline in consumer confidence, an overall softening of demand for new homes and an oversupply of homes available for sale, has been exacerbated by, among other things, a decline in the overall economy, increased unemployment, the increased number of vacant homes, fear of job loss, a decline in home prices and the resulting reduction in home equity, the large number of homes that are or will be available due to foreclosures, the inability of some of our home buyers or some prospective buyers of their homes to sell their current home, and the direct and indirect impact of tightened availability of mortgage loans.

We continue to believe that many of our markets and housing in general have reached bottom; however, we expect that there may be more periods of volatility in the future. We also believe that our target customers generally have remained employed during this downturn, but that many have deferred their home buying decisions because of concerns over the direction of the economy and media headlines suggesting that home prices continue to decline. We continue to believe that, once the economy and consumer confidence improve and the unemployment rate declines, pent-up demand will be released and, gradually, more buyers will enter the market. We continue to believe that the key to a full recovery in our business depends on these factors as well as a sustained stabilization of financial markets and home prices.

We also believe that the medium and long-term futures for us and the homebuilding industry are bright. A 2011 Harvard University study projects that under both low- and high- growth scenarios, housing demand in the 2010-2020 period should exceed that of the previous three decades. In many markets, the pipeline of approved and improved home sites has dwindled as builders and developers have lacked both the capital and the economic benefit for bringing sites through approvals. Therefore, we believe when demand picks up, builders and developers with approved land in well-located markets will be poised to benefit. We believe that this will be particularly true for us because our land portfolio is heavily weighted in the metro-Washington, DC to metro-Boston corridor where land is scarce, approvals are more difficult to obtain and overbuilding has been relatively less prevalent than in the Southeast and Western regions.

We continue to seek a balance between our short-term goal of selling homes in a tough market and our long-term goal of maximizing the value of our communities. We continue to believe that many of our communities are in desirable locations that are difficult to replace and in markets where approvals have been increasingly difficult to obtain. We believe that many of these communities have substantial embedded value that may be realized in the future and that this value should not necessarily be sacrificed in the current soft market.

32

Although, historically, our first fiscal quarter is the most challenging time to gauge sentiment among home buyers, in general, the market feels healthier to us than it did in the comparable period of fiscal 2011. The urban metro-New York City market remains very strong. We are also encouraged by the continued health of the Washington, DC-to-Boston corridor, along with Houston, Dallas, Raleigh, and more recently Southern California, including metro-San Diego. We are also seeing some recovery on the east coast of Florida, in the Detroit suburbs and metro Phoenix.

Competitive Landscape

Based on our experience during prior downturns in the housing industry, we believe that attractive land acquisition opportunities arise in difficult times for those builders that have the financial strength to take advantage of them. In the current challenging environment, we believe our strong balance sheet, liquidity, access to capital, broad geographic presence, diversified product line, experienced personnel and national brand name all position us well for such opportunities now and in the future.

We continue to see reduced competition from the small and mid-sized private builders that had been our primary competitors in the luxury market. We believe that many of these builders are no longer in business and that access to capital by the surviving private builders is already severely constrained. We envision that there will be fewer and more selective lenders serving our industry when the market rebounds and that those lenders likely will gravitate to the homebuilding companies that offer them the greatest security, the strongest balance sheets and the broadest array of potential business opportunities. We believe that this reduced competition, combined with attractive long-term demographics, will reward those well-capitalized builders that can persevere through the current challenging environment.

As market conditions improve over time, we believe that geographic and product diversification, access to lower-cost capital and strong demographics will benefit those builders, like us who can control land and persevere through the increasingly difficult regulatory approval process. We believe that these factors favor the large publicly traded homebuilding companies with the capital and expertise to control home sites and gain market share. We also believe that over the past five years, many builders and land developers reduced the number of home sites that were taken through the approval process. The process continues to be difficult and lengthy, and the political pressure from no-growth proponents continues to increase, but we believe our expertise in taking land through the approval process and our already-approved land positions will allow us to grow in the years to come, as market conditions improve.

Land Acquisition and Development

Because of the 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, we are subject to many risks. In certain cases, we attempt to reduce some of these risks by utilizing one or more of the following methods: controlling land for future development through options (also referred to herein as “land purchase contracts” or “option and purchase agreements”), thus allowing the necessary governmental approvals to be obtained 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. Our risk reduction strategy of generally not commencing the construction of a detached home until we have an agreement of sale with a buyer was effective prior to this current downturn in the housing market, but, due to the number of cancellations of agreements of sale that we had during fiscal 2007, 2008 and 2009, many of which were for homes on which we had commenced construction, the number of homes under construction in detached single-family communities for which we did not have an agreement of sale increased. With our contract cancellation rates returning to more normal levels in fiscal 2010 through the end of the current fiscal quarter, and the sale of these units which we had under construction related to the cancellations, we have reduced the number of unsold units to more historical levels. In addition, over the past several years, the number of our attached-home communities has grown, resulting in an increase in the number of unsold units under construction.

In response to the decline in market conditions over the past several years, we have re-evaluated and renegotiated or cancelled many of our land purchase contracts. In addition, we have sold, and may continue to sell, certain parcels of land that we have identified as non-strategic. As a result, we reduced our land position from a high of approximately 91,200 home sites at April 30, 2006 to approximately 39,700 home sites at January 31, 2012. We

33

continue to position ourselves for the anticipated recovery through the opportunistic and, we believe, prudent purchase of land and the continued growth of our community count. Based on our belief that the housing market has bottomed, the increased attractiveness of land available for purchase and the revival of demand in certain areas, we have begun to increase our land positions. During fiscal 2011, we acquired control of approximately 5,300 home sites (net of options terminated) and in the three-month period ended January 31, 2012, 2,800 home sites (net of options terminated) including approximately 1,500 home sites that were acquired in the CamWest asset purchase. Of the 39,700 home sites controlled at January 31, 2012, we owned approximately 32,400. Of these 32,400 home sites, significant improvements were completed on approximately 12,200 of them. At January 31, 2012 and 2011, we were selling from 228 and 200 communities, respectively. At October 31, 2011, we were selling from 215 communities, compared to 195 communities at October 31, 2010. Our November 2011 acquisition of CamWest assets increased our selling community count by 15.

We expect to be selling from 235 to 255 communities at October 31, 2012. At January 31, 2012, we had 50 communities that were temporarily closed due to market conditions and 48 communities that we had acquired the land for but have temporarily decided not to open. We expect to reopen 4 communities by November 1, 2012.

Availability of Customer Mortgage Financing

We maintain relationships with a widely diversified group of mortgage financial institutions, many of which are among the largest and, we believe, most reliable 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 such 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. Nevertheless, in recent years, tightened credit standards have shrunk the pool of potential home buyers and hindered accessibility of or eliminated certain loan products previously available to our home buyers. Our home buyers continue to face stricter mortgage underwriting guidelines, higher down payment requirements and narrower appraisal guidelines than in the past. In addition, some of our home buyers continue to find it more difficult to sell their existing homes as prospective buyers of their homes may face difficulties obtaining a mortgage. In addition, other potential buyers may have little or negative equity in their existing homes and may not be able to or willing to purchase a larger or more expensive home.

While the range of mortgage products available to a potential home buyer is not what it was in 2005 – 2007, we have seen improvements over the past year. Indications from industry participants, including commercial banks, mortgage banks, mortgage REITS and mortgage insurance companies are that availability, parameters and pricing of jumbo loans are all improving. We believe that improvement should not only enhance financing alternatives for existing jumbo buyers, but should help to offset the reduction in Fannie Mae/Freddie Mac-eligible loan amounts in some markets. Based on the mortgages provided by our mortgage subsidiary during the past 15 months, we do not expect the change in the Fannie Mae/Freddie Mac-eligible loan amounts to have a significant impact on our business.

There has been significant media attention given to mortgage put-backs, a practice by which a buyer of a mortgage loan tries to recoup losses from the loan originator. We do not believe this is a material issue for our mortgage subsidiary. Of the approximately 14,300 loans sold by our mortgage subsidiary since November 1, 2004, only 26 have been the subject of either actual indemnification payments or take-backs or contingent liability loss provisions related thereto. We believe that this is due to (i) our typical home buyer’s financial position and sophistication, (ii) on average, our home buyers who use mortgage financing to purchase a home pay approximately 30% of the purchase price in cash, (iii) our general practice of not originating certain loan types such as option adjustable rate mortgages and down payment assistance products, and our origination of very few sub-prime, high loan-to-value and no documentation loans and (iv) our elimination of “early payment default” provisions from each of our agreements with our mortgage investors several years ago.

The Dodd-Frank Wall Street Reform and Consumer Protection Act provides for a number of new requirements relating to residential mortgage lending practices, many of which are subject to further rule making. These include, among others, minimum standards for mortgages and related lender practices, the definitions and parameters of a Qualified Mortgage and a Qualified Residential Mortgage, future risk retention requirements, limitations on certain fees, prohibition of certain tying arrangements, and remedies for borrowers in foreclosure proceedings in the event that a lender violates fee limitations or minimum standards. The ultimate effect of such provisions on lending institutions, including our mortgage subsidiary, will depend on the rules that are ultimately promulgated.

34

Gibraltar

We continue to look for other distressed real estate opportunities through Gibraltar. Gibraltar continues to selectively review a steady flow of new opportunities, including FDIC and bank portfolios and other distressed real estate investments. In December 2011, Gibraltar acquired three portfolios of non-performing loans consisting of 11 loans with an unpaid principal balance of approximately $51.4 million. The portfolio included non-performing loans secured by commercial land and buildings in various stages of completion. The portfolios that Gibraltar previously acquired were primarily residential acquisition, development, and construction loans secured by properties in various stages of completion.

At January 31, 2012, Gibraltar had direct investments in loan portfolios, real estate owned and a participation in a loan portfolio of approximately $96.8 million and an investment in a structured asset joint venture of $34.2 million. At January 31, 2012, Gibraltar directly, through a loan participation and through a joint venture, controlled 338 loans and properties with a net unpaid principal or estimated fair value of approximately $668.3 million.

During the three-month periods ended January 31, 2012 and 2011, we recognized net income of $1.7 million and $0.2 million from the Gibraltar operations, respectively.

CONTRACTS AND BACKLOG

The aggregate value of gross sales contracts signed increased 44.3% in the three-month period ended January 31, 2012, as compared to the three-month period ended January 31, 2011. The value of gross sales contracts signed was $470.3 million (695 homes) and $325.9 million (581 homes) in the three-month period ended January 31, 2012 and 2011, respectively. The increase in the aggregate value of gross contracts signed in the three-month period ended January 31, 2012, as compared to the comparable period of fiscal 2011, was the result of a 19.6% increase in the number of gross contracts signed, and a 20.6% increase in the average value of each contract signed. The increase in the number of gross contracts signed was primarily due to increased demand and the increase in the number of selling communities in the fiscal 2012 period, as compared to the fiscal 2011 period. Approximately 70% of the increase in the average value of each contract signed was due to the sales contracts signed at one of our luxury high-rise developments in the metro-New York market which averaged approximately $4.1 million each.

The aggregate value of net contracts signed increased 44.8% in the three-month period ended January 31, 2012, as compared to the three-month period ended January 31, 2011. The value of net contracts signed was $444.7 million (652 homes) in the fiscal 2012 period and $307.2 million (548 homes) in the fiscal 2011 period. The increase in the fiscal 2012 period, as compared to the fiscal 2011 period, was the result of a 21.7% increase in the average price of each contract signed and a 19.0% increase in the number of net contracts signed. Excluding the sales contracts signed in the high-rise development discussed above, the average price of net contracts signed in the fiscal 2012 period increased 6% over the average price of net contracts signed in the fiscal 2011 period.

In the three-month period ended January 31, 2012, home buyers cancelled $25.6 million (43 homes) of signed contracts, representing 5.4% of the gross value of contracts signed and 6.2% of the gross number of contracts signed. In the three-month period ended January 31, 2011, home buyers cancelled $18.7 million (33 homes) of signed contracts, representing 5.7% of the gross value of contracts signed and 5.7% of the gross number of contracts signed. The average value of the contracts cancelled in the three-month period of fiscal 2012 increased approximately 5.0%, as compared to the three-month period of fiscal 2011.

Backlog consists of homes under contract but not yet delivered to our home buyers. The value of our backlog at January 31, 2012 of $1.12 billion (1,784 homes) increased 35.4%, as compared to our backlog at January 31, 2011 of $825.2 million (1,472 homes). Our backlog at October 31, 2011 and 2010 was $981.1 million (1,667 homes) and $852.1 million (1,494 homes), respectively. The value of backlog at January 31, 2012, as compared to the backlog at October 31, 2011, increased approximately $136.4 million. This increase was attributable to the value of net contracts signed in the three-month period ended January 31, 2012 exceeding the value of the homes delivered in the same period. The value of backlog at January 31, 2011, as compared to the backlog at October 31, 2010, decreased approximately $26.9 million. This decrease was attributable to the value of homes delivered in the three-month period ended January 31, 2011 exceeding the value of net contracts signed in the same period.

For more information regarding revenues, gross contracts signed, contract cancellations and net contracts signed by geographic segment, see “Geographic 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 re-opens, 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. 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 ten 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 for which we believe the values have been impaired.

Current Communities: When the profitability of a current 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 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: (a) 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; (b) the expected sales prices and sales incentives to be offered in a community; (c) costs expended to date and expected to be incurred in the future, including, but not limited to, land and land development costs, home construction costs, interest costs and overhead costs; (d) 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 (e) 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 current 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 current 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 will 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 (a) as to land under contract to be purchased, whether the contract will likely be terminated or renegotiated, and (b) 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 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.

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In the three-month periods ended January 31, 2012 and 2011, we recognized impairment charges of $6.4 million and $5.5 million, respectively. In the three-month period ended January 31, 2012, we wrote-off costs of $1.7 million that we do not believe to be recoverable; in the comparable period of fiscal 2011, we recovered $0.4 million of previously written-off costs.

The table below provides, for the periods indicated, 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, as of the end of the period indicated, the fair value of those communities, net of impairment charges ($ amounts in millions).

		September 30,		September 30,		September 30,		September 30,
			Impaired operating communities
					Fair value of
					communities,
	Number of				net of
	communities		Number of		impairment		Impairment
	tested		communities		charges		charges
Three months ended:
Fiscal 2012:
January 31		113		8	$	49,758	$	6,425
Fiscal 2011:
January 31		143		6	$	56,105	$	5,475
April 30		142		9	$	40,765		10,725
July 31		129		2	$	867		175
October 31		114		3	$	3,367		710
							$	17,085

Variable Interest Entities: We have a significant number of land purchase contracts and several investments in unconsolidated entities which we evaluate in accordance with ASC 810, “Consolidation” (“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 variable interest entities (“VIEs”) and, if so, whether we are the primary beneficiary. If we are determined to be the primary beneficiary of the VIE, we must consolidate it. A VIE is an entity with insufficient equity investment or in which the equity investors lack some of the characteristics of a controlling financial interest. In determining whether we are the primary beneficiary, we consider, among other things, whether we have the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, including, but not limited to, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE. We also consider whether we have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. At January 31, 2012, the Company had determined that 57 land purchase contracts, with an aggregate purchase price of $437.9 million, on which we had made aggregate deposits totaling $25.5 million, were VIEs, and that we were not the primary beneficiary of any VIE related to these land purchase contracts.

OFF-BALANCE SHEET ARRANGEMENTS

We have investments in and advances to various unconsolidated entities. At January 31, 2012, we had investments in and advances to these entities, net of impairment charges recognized, of $193.6 million, and were committed to invest or advance $49.3 million to these entities if they require additional funding.

The trends, uncertainties or other factors that have negatively impacted our business and the industry in general have also impacted 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 as we do. See “Critical Accounting Policies – Inventory” 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 (loss) income from

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unconsolidated entities with a corresponding decrease to our investment in unconsolidated entities. During the three-months ended January 31, 2012, based upon our evaluation of the fair value of our investments in unconsolidated entities, we determined that there were no impairments of our investments in these joint ventures. During the three-months ended January 31, 2011, based upon our evaluation of the fair value of our investments in unconsolidated entities, we determined that there was an impairment to our investment in a development joint venture. See Note 4 – “Investments and Advances to Unconsolidated Entities – Development Joint Ventures” in the Condensed Consolidated Financial Statements for more information concerning this impairment.

On October 27, 2011, a bankruptcy court issued an order confirming a plan of reorganization for South Edge, LLC (“South Edge”), a Nevada land development joint venture which was the subject of an involuntary bankruptcy petition filed in December, 2010. Pursuant to the plan of reorganization, South Edge settled litigation regarding a loan made by a syndicate of lenders to South Edge having a principal balance of $327.9 million, for which we had executed certain completion guarantees and conditional repayment guarantees. In November 2011, we made a payment of $57.6 million as our share of the settlement. We believe we have made adequate provision at January 31, 2012 for any remaining exposure to lenders which are not parties to the agreement. Our carrying value of our investment in the successor joint venture to South Edge is carried at nominal value. See Note 4 – “Investments and Advances to Unconsolidated Entities – Development Joint Ventures” in the Condensed Consolidated Financial Statements for more information concerning this venture.

In December 2011, we entered into a joint venture to develop a high-rise luxury for-sale/rental project in the metro-New York market. We invested $76.7 million and were committed to make additional contributions of $37.5 million. Under the terms of the agreement, upon completion of the construction of the building, we will acquire ownership of the top eighteen floors of the building to sell, for our own account, luxury condominium units and our partner will receive ownership of the lower floors containing residential, for lease units and retail space.

Under the Securities and Exchange Commission Regulation S-X, TMF Kent Partners, LLC (“TMF”) and KTL 303 LLC (“KTL”) are deemed significant joint ventures. TMF was formed to acquire land and construct two luxury condominium buildings comprising a total of 450 residential units and a parking garage, located in Brooklyn, New York (the “Property”). Building 1, comprised of 180 units, was completed in fiscal 2008 and was substantially settled out as of October 31, 2010. TMF began construction of Building 2, comprised of 270 units, in fiscal 2008 and commenced settlement of units in October 2010. As of January 31, 2012, 216 units in Building 2 have been settled. TMF expects to be substantially settled out by October 31, 2012. We have a 50% ownership interest in TMF.

KTL was formed to develop, finance, construct and market a 14 story luxury condominium building, comprised of 128 residential units and approximately 14,500 square feet of commercial space, located in Manhattan, New York. KTL began construction of the building in fiscal 2008 and commenced settling units in fiscal 2010. As of January 31, 2012, KTL had one unit left to settle. KTL expects to be settled out by October 31, 2012. We have a 50% ownership interest in KTL.

Our investments in these entities are accounted for using the equity method.

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RESULTS OF OPERATIONS

The following table sets forth, for the three-month periods ended January 31, 2012 and 2011, a comparison of certain statement of operations items ($ in millions):

		September 30,			September 30,			September 30,			September 30,
	Three months ended January 31,
	2012						2011
	$			%*			$			%*
Revenues		322.0						334.1
Cost of revenues		271.6			84.4			282.0			84.4
Selling, general and administrative		69.6			21.6			61.3			18.3
Interest expense								1.1			0.3
		341.2			106.0			344.3			103.1
Loss from operations		(19.3	)		(6.0	)		(10.2	)		(3.1	)
Other
Income (loss) from unconsolidated entities		6.7						(11.0	)
Interest and other		6.2						4.2
Loss before income tax benefit		(6.4	)					(17.0	)
Income tax benefit		(3.6	)					(20.5	)
Net loss		(2.8	)					3.4

* Percent of revenues

Note: Due to rounding, amounts may not add.

REVENUES AND COST OF REVENUES

Revenues for the three months ended January 31, 2012 were lower than those for the comparable period of fiscal 2011 by approximately $12.2 million, or 3.6%. This decrease was attributable to a 2.6% decrease in the average price of the homes delivered in the fiscal 2012 period as compared to the fiscal 2011 period and an 1.1% decrease in the number of homes delivered in the fiscal 2012 period, as compared to the fiscal 2011 period.

Cost of revenues as a percentage of revenues was 84.4% in the three-month periods ended January 31, 2012 and 2011. In the three-month periods ended January 31, 2012 and 2011, we recognized inventory impairment charges and write-offs of $8.1 million and $5.1 million, respectively. Cost of revenues as a percentage of revenues, excluding impairments, was 81.8% of revenues in the three-month period ended January 31, 2012, as compared to 82.9% in the fiscal 2011 period. The decrease in cost of revenues, excluding inventory impairment charges, as a percentage of revenue in the fiscal 2012 period, as compared to the comparable period of fiscal 2011, was due primarily to lower costs on the homes delivered in the fiscal 2012 period than those delivered in the fiscal 2011 period and lower interest cost in the fiscal 2012 period as compared to the fiscal 2011 period. The lower costs were due to the delivery of fewer quick-delivery homes in the fiscal 2012 period, as compared to the fiscal 2011 period, as our supply of quick-delivery homes has dwindled and from the continued benefits realized from cost savings of our new centralized purchasing initiatives, offset, in part, by the impact of purchase accounting on the homes closed from our acquisition of CamWest in November 2011. In the three-month periods ended January 31, 2012 and 2011, interest cost as a percentage of revenues was 5.1% and 5.4%, respectively.

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

SG&A increased by $8.4 million in the three-month period ended January 31, 2012, as compared to the three-month period ended January 31, 2011. The fiscal 2011 period SG&A was reduced due to approximately $6.0 million related to an insurance recovery and the reversal of accruals no longer needed due to changes in estimates. Excluding the aforementioned $6.0 million, SG&A, as a percentage of revenues, was 21.6% in the three-month period ended January 31, 2012, as compared to 16.5% in the fiscal 2011 period. The increase in SG&A, as a percentage of revenues, was due primarily to increased compensation costs and increased sales and marketing costs. The increased compensation costs and increased sales and marketing costs were due primarily to the increased number of communities we had open in the fiscal 2012 period, as compared to the fiscal 2011 period.

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INTEREST EXPENSE

Interest incurred on average homebuilding indebtedness in excess of average qualified inventory is charged directly to the statement of operations in the period incurred. Interest expensed directly to the statement of operations in the three-month period ended January 31, 2011 was $1.1 million. Due to the increase in qualified inventory and the capitalization of all interest incurred on our homebuilding indebtedness, we did not have any directly expensed interest in three-month period ended January 31, 2012.

INCOME (LOSS) FROM UNCONSOLIDATED ENTITIES

We are a participant in several joint ventures. We recognize our proportionate share of the earnings and losses from these entities. The trends, uncertainties or other factors that have negatively impacted our business and the industry in general and which are discussed in the “Overview” section of this MD&A have also impacted the unconsolidated entities in which we have investments. Most of our joint ventures are land development projects or high-rise/mid-rise construction projects and do not generate revenues and earnings for a number of years during the development of the property. Once development is complete, the joint ventures will generally, over a relatively short period of time, generate revenues and earnings until all the assets of the entity are sold. Because there is not a steady flow of revenues and earnings from these entities, the earnings recognized from these entities will vary significantly from year to year.

In the three-month period ended January 31, 2012, we recognized $6.7 million of income from unconsolidated entities, as compared to an $11.0 million loss from unconsolidated entities in the fiscal 2011 period. The loss in the fiscal 2011 period included a $20.0 million impairment charge that we recognized on our investments in unconsolidated entities. No impairment charge was recognized in the fiscal 2012 period. See “Off-Balance Sheet Arrangements” in this MD&A for information related to this impairment charge. Excluding the $20.0 million impairment charge recognized in the fiscal 2011 period, income from unconsolidated entities decreased in the fiscal 2012 period by $2.3 million, as compared to the fiscal 2011 period. The decrease in income was due principally to lower income generated from our condominium joint ventures, primarily due to the delivery of fewer units in the fiscal 2012 period than in the 2011 period, and a loss realized from our structured asset joint venture, offset, in part, by higher income generated in the fiscal 2012 period, as compared to fiscal 2011 period, from our development joint ventures.

INTEREST AND OTHER INCOME

For the three months ended January 31, 2012 and 2011, interest and other income was $6.2 million and $4.2 million, respectively. The increase in interest and other income in the three-month period ended January 31, 2012, as compared to the fiscal 2011 period, was primarily due to a $2.7 million increase in income from our ancillary businesses in the fiscal 2012 period, as compared to the fiscal 2011 period, offset, in part, by a $1.0 million decrease in the gains on land sales in the fiscal 2012 period, as compared to the fiscal 2011 period.

LOSS BEFORE INCOME TAX BENEFIT

For the three-month period ended January 31, 2012, we reported a loss before income tax benefit of $6.4 million, as compared to a loss before income tax benefit of $17.0 million in the three-month period ended January 31, 2011.

INCOME TAX BENEFIT

We recognized a $3.6 million tax benefit in the three-month period ended January 31, 2012. Based upon the federal statutory rate of 35%, our tax benefit would have been $2.2 million. The difference between the tax benefit recognized and the tax benefit based on the federal statutory rate was due primarily to the reversal of $5.3 million of previously accrued taxes on uncertain tax positions (net of federal tax provision), offset, in part, by $2.0 million of accrued interest and penalties (net of federal tax provision) and a $1.5 million increase in our provision for uncertain tax positions.

We recognized a $20.5 million tax benefit in the first quarter of fiscal 2011 due primarily to the reversal of $18.0 million of previously accrued taxes on uncertain tax positions that were resolved during the period, and the reversal of $2.3 million of state tax liabilities (net of federal tax provision) due to the settlement of a state income tax audit at a lower amount than provided.

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CAPITAL RESOURCES AND LIQUIDITY

Funding for our business has been provided principally by cash flow from operating activities before inventory additions, unsecured bank borrowings and the public debt and equity markets. At January 31, 2012, we had $575.7 million of cash and cash equivalents and $143.7 million of marketable securities. At October 31, 2011, we had $906.3 million of cash and cash equivalents and $233.6 million of marketable securities. Cash used in operating activities during the three-month period ended January 31, 2012 was $161.9 million. Cash used in operating activities during the fiscal 2012 period was primarily used to fund the purchase of inventory, reduce accounts payable and accrued liabilities, including the payment of $57.6 million to fund the litigation settlement related to South Edge, and to replace letters of credit with cash deposits, offset, in part, by the sale of mortgage loans, net of mortgage originations. In the three-month period ended January 31, 2012, cash used in our investing activities was $139.2 million, net of $88.2 million of sales and redemptions of marketable securities and $19.0 million of cash received as returns on our investments in unconsolidated entities and in non-performing loan portfolios and foreclosed real estate. The gross cash used in investing activities of $246.4 million included $144.7 million for the acquisition of the assets of CamWest, $70.9 million to fund a new joint venture project in New York City and $26.4 for investments in a non-performing loan portfolio. We also used $29.5 million of cash in financing activities in the three-month period ended January 31, 2012, primarily for the repayment of $25.5 million of our mortgage company warehouse loan, net of new borrowings under it, and the repayment of other loans payable.

At January 31, 2011, we had $1.10 billion of cash and cash equivalents and marketable securities on hand, a decline of $135.9 million from October 31, 2010. Cash used in operating activities during the three-month period ended January 31, 2011 was $77.2 million. Cash used in operating activities during the fiscal 2011 period was primarily used to fund the purchase of inventory and reduce accounts payable and accrued liabilities, and was offset, in part, by the sale of mortgage loans, net of mortgage originations. We used $14.7 million of cash in our investing activities in the three-month period ended January 31, 2011, primarily for investments in marketable securities, net of sales of marketable securities. We also used $60.6 million of cash in financing activities in the three-month period ended January 31, 2011, primarily for the repayment of $53.0 million of our mortgage warehouse loan, net of new borrowings under it, and the repayment of other loans payable.

On February 7, 2012, we issued $300 million principal amount of 5.875% Senior Notes due 2022 (the “5.875% Senior Notes”) and received $296.2 million of net proceeds from the issuance of the 5.875% Senior Notes.

On March 5, 2012, we issued an additional $119.9 million principal of our 5.875% Senior Notes due 2022 in exchange for $80.7 million principal amount of our 6.875% Senior Notes due 2012 and for $36.9 million principal amount of our 5.95% Senior Notes due 2013. We expect to recognize a charge of approximately $1.1 million in the quarter ending April 30, 2012 representing the aggregate costs associated with the exchange of both series of notes.

At January 31, 2012, the aggregate purchase price of land parcels under option and purchase agreements was approximately $664.0 million. Of the $664.0 million of land purchase commitments, we had paid or deposited $32.2 million, we will receive a credit for amounts previously contributed to unconsolidated entities of $75.6 million, and, if we acquire all of these land parcels, we will be required to pay $556.2 million. The purchases of these land parcels are scheduled over the next several years. 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.

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 approximately 32,400 home sites at January 31, 2012, we do not need to buy home sites immediately to replace those which we deliver. In addition, we generally do not begin construction of our single-family detached homes until we have a signed contract with the home buyer, although in the past several years, due to the high cancellation rate of customer contracts and the increase in the number of attached-home communities from which we were operating (all of the units of which are generally not sold prior to the commencement of construction), the number of speculative homes in our inventory increased significantly. Should our business decline from present levels, we believe that our inventory levels would decrease as we complete and deliver the homes under construction but do not commence construction of as many new homes and not incur additional costs to improve land we already own and as we sell and deliver the speculative homes that are currently in inventory, all of which should result in additional cash flow from operations. In addition, we might curtail our acquisition of additional land which would further reduce our inventory levels and cash needs. We have begun to see land being offered at prices that we believe are attractive based on current market conditions and have entered into several contracts to acquire land in the last several months. During the three-month period ended January 31, 2012, we acquired control of approximately 2,800 lots (net of lot options terminated), including the approximately 1,245 home sites owned and 254 home sites controlled through land purchase agreements acquired in the CamWest

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asset acquisition. At January 31, 2012, we owned or controlled through options approximately 39,700 home sites, as compared to approximately 37,500 at October 31, 2011, 35,700 at January 31, 2011, and approximately 91,200 at April 30, 2006, our peak in terms of home sites owned or controlled through options. Of the 39,700 home sites owned or controlled through options at January 31, 2012, we owned approximately 32,400; significant improvements were completed on approximately 12,200 of them.

At January 31, 2012, we had $814.8 million available to us under our $885.0 million revolving credit facility with 12 banks, which matures in October 2014. At January 31, 2012, we had no outstanding borrowings under the new credit facility but had outstanding letters of credit of approximately $70.2 million. At January 31, 2012, interest would have been payable on borrowings under our credit facility at 2.75% (subject to adjustment based upon our debt rating and leverage ratios) above the Eurodollar rate or at other specified variable rates as selected by us from time to time. We are obligated to pay an undrawn commitment fee of 0.50% (subject to adjustment based upon our debt rating and leverage ratios) based on the average daily unused amount of the credit facility. Under the terms of the credit facility, we are not permitted to allow our maximum leverage ratio (as defined in the credit agreement) to exceed 1.75 to 1.00, and we are required to maintain a minimum tangible net worth (as defined in the credit agreement) of approximately $1.87 billion at January 31, 2012. At January 31, 2012, our leverage ratio was approximately 0.34 to 1.00, and our tangible net worth was approximately $2.56 billion. Based upon the minimum tangible net worth requirement at January 31, 2012, our ability to pay dividends was limited to an aggregate amount of approximately $683.1 million and our ability to repurchase our common stock was limited to an aggregate amount of approximately $988.7 million at January 31, 2012. In addition, at January 31, 2012, we had $13.0 million of letters of credit outstanding which were not part of our credit facility; these letters of credit were collateralized by $13.3 million of cash deposits.

We believe that we will be able to continue to fund our current operations and meet our contractual obligations through a combination of existing cash resources and other sources of credit. Due to the tight credit markets and the uncertainties that exist 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; moreover, if we are able to replace all or some of such facilities, we may be subjected to more restrictive borrowing terms and conditions.

GEOGRAPHIC SEGMENTS

We operate in four geographic segments around the United States: the North, consisting of Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey and New York; the Mid-Atlantic, consisting of Delaware, Maryland, Pennsylvania and Virginia; the South, consisting of Florida, North Carolina, South Carolina, and Texas; and the West, consisting of Arizona, California, Colorado, Nevada and Washington.

The tables below summarize information related to revenues, gross contracts signed, contract cancellations and net contracts signed provided on units delivered by geographic segment for the three-month periods ended January 31, 2012 and 2011, and information related to backlog by geographic segment at January 31, 2012 and 2011 and October 31, 2011 and 2010.

		September 30,		September 30,		September 30,		September 30,
	Total number of contracts				Total value of contracts
	2012		2011		2012		2011
Revenues - Three months ended January 31:	Units		Units		(In millions)		(In millions)
North		137		149	$	75.6	$	82.5
Mid-Atlantic		179		179		100.8		103.8
South		135		115		76.5		61.9
West		113		127		69.1		85.9
		564		570	$	322.0	$	334.1

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		September 30,			September 30,			September 30,			September 30,
	Total number of contracts						Total value of contracts
	2012			2011			2012			2011
Gross contracts signed - Three months ended January 31:	Units			Units			(In millions)			(In millions)
North		215			148		$	185.8		$	82.5
Mid-Atlantic		189			196			109.3			112.0
South		171			133			103.9			73.9
West		120			104			71.3			57.5
		695			581		$	470.3		$	325.9
	Total number of contracts						Total value of contracts
	2012			2011			2012			2011
Contracts cancellations - Three months ended January 31:	Units			Units			(In millions)			(In millions)
North		14			16		$	7.3		$	8.8
Mid-Atlantic		7			6			5.1			3.2
South		12			7			7.6			4.7
West		10			4			5.6			2.0
		43			33		$	25.6		$	18.7
	Total number of contracts						Total value of contracts
	2012			2011			2012			2011
Net contracts signed - Three months ended January 31:	Units			Units			(In millions)			(In millions)
North		201			132		$	178.5		$	73.7
Mid-Atlantic		182			190			104.2			108.8
South		159			126			96.3			69.2
West		110			100			65.7			55.5
		652			548		$	444.7		$	307.2
Contracts cancellations as a percentage of gross contracts	Total number of contracts						Total value of contracts
signed - Three months ended January 31:	2012			2011			2012			2011
North		6.5	%		10.8	%		3.9	%		10.6	%
Mid-Atlantic		3.7	%		3.1	%		4.7	%		2.9	%
South		7.0	%		5.3	%		7.3	%		6.4	%
West		8.3	%		3.8	%		7.8	%		3.5	%
Total		6.2	%		5.7	%		5.4	%		5.7	%
	Total number of contracts						Total value of contracts
	2012			2011			2012			2011
Backlog at January 31:	Units			Units			(In millions)			(In millions)
North		617			504		$	410.3		$	250.6
Mid-Atlantic		490			486			292.4			289.4
South		466			307			283.0			166.9
West		211			175			131.8			118.3
		1,784			1,472		$	1,117.5		$	825.2

43

		September 30,		September 30,		September 30,		September 30,
	Total number of contracts				Total value of contracts
	2011		2010		2011		2010
Backlog at October 31:	Units		Units		(In millions)		(In millions)
North		553		521	$	307.4	$	259.3
Mid-Atlantic		487		475		288.9		284.4
South		442		296		263.2		159.7
West		185		202		121.6		148.7
		1,667		1,494	$	981.1	$	852.1

Revenues and (Loss) Income Before Income Taxes:

The following table summarizes by geographic segment total revenues and (loss) income before income taxes for the three-month periods ended January 31, 2012 and 2011 (amounts in millions):

		September 30,		September 30,
	Three months ended January 31,
	2012		2011
Revenue:
North	$	75.6	$	82.5
Mid-Atlantic		100.8		103.8
South		76.5		61.9
West		69.1		85.9
Total	$	322.0	$	334.1

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
(Loss) income before income taxes:
North	$	1.2		$	7.1
Mid-Atlantic		10.7			8.1
South		(2.1	)		(1.4	)
West		5.6			(15.2	)
Corporate and other (a)		(21.8	)		(15.6	)
Total	$	(6.4	)	$	(17.0	)

(a) Corporate and other is comprised principally of general corporate expenses such as the Offices of the Chief Executive Officer and President, and the corporate finance, accounting, audit, tax, human resources, risk management, marketing and legal groups, directly expensed interest, interest income and income (loss) from our ancillary businesses.

North

Revenues in the three months ended January 31, 2012 were lower than those for the comparable period of fiscal 2011 by $6.9 million, or 8.4%. The decrease in revenues was attributable to a decrease in the number of homes delivered. The decrease in the number of homes delivered in the fiscal 2012 period, as compared to the fiscal 2011 period, was primarily due to a decrease in the number of settlements in the fiscal 2012 period in Connecticut, Illinois and Minnesota as the result of the lower backlog in communities located in these states at October 31, 2011, as compared to October 31, 2010, and a decrease, in the fiscal 2012 period, as compared to the fiscal 2011, in the number of settlements at several of our high-rise communities where unit availability had diminished, offset, in part, by an increase in the number of settlements in Massachusetts and New Jersey in the fiscal 2012 period, as compared to the fiscal 2011 period, primarily due to higher backlog in communities located in these states at October 31, 2011, as compared to October 31, 2010.

The value of net contracts signed in the three months ended January 31, 2012 was $178.5 million, a 142.0% increase from the $73.7 million of net contracts signed during the three months ended January 31, 2011. This increase was primarily due to a 52.3% increase in the number of net contracts signed and to a 59.0% increase in the average value of each net contract. The increase in the number of net contracts signed in the fiscal 2012 period, as compared to the fiscal 2011 period, was primarily due to the contracts signed, in the fiscal 2012 period, at three high-rise buildings located in the New York urban market, which opened for sale in the second half of fiscal 2011.

44

The increase in the average sales price of net contracts signed in the fiscal 2012 period, as compared to the fiscal 2011 period, was primarily attributable to sales at the Touraine, a high-rise building located in the New York urban markets that opened for sale in the fourth quarter of fiscal 2011. In the three-month period ended January 31, 2012, the Touraine signed 16 contracts with an average sales value of approximately $4.1 million each.

For the three months ended January 31, 2012 and 2011, we reported income before income taxes of $1.2 million and $7.1 million, respectively. The decrease in income in the fiscal 2012 period, as compared to the fiscal 2011 period, was primarily attributable to a decrease in income from unconsolidated entities from $8.2 million in the fiscal 2012 period to $4.6 million in the fiscal 2011 period and an increase in impairment charges in the fiscal 2012 period, as compared to the fiscal 2011 period. The $3.6 million decrease in income from unconsolidated entities in the fiscal 2012 period was due principally to a decrease in income generated from two of our high-rise construction joint ventures where unit availability has diminished since the fiscal 2011 period. In the three months ended January 31, 2012 and 2011, we recognized inventory impairment charges of $2.3 million and $1.4 million, respectively.

Mid-Atlantic

For the three months ended January 31, 2012, revenues were lower than those for the three months ended January 31, 2011 by $3.0 million, or 2.9%, primarily due to a decrease in the average sales price of the homes delivered. The decrease in the average price of the homes delivered in the fiscal 2012 period, as compared to the fiscal 2011 period, was primarily related to a shift in the number of homes delivered to less expensive products and/or locations.

The value of net contracts signed during the three-month period ended January 31, 2011 decreased by $4.5 million, or 4.2%, from the three-month period ended January 31, 2011. The decrease was primarily due to a decrease in the number of net contracts signed from 190 in the fiscal 2011 period to 182 in the fiscal 2012 period. The decrease in the number of net contracts signed was due primarily to the fiscal 2011 period being a stronger sales quarter in this region in which net contracts signed increased 18% as compared to the three months ended January 31, 2010.

We reported income before income taxes for three-month periods ended January 31, 2012 and 2011 of $10.7 million and $8.1 million, respectively. The increase in the income before income taxes was primarily due to lower cost of revenues as a percentage of revenues in the fiscal 2012 period, as compared to the fiscal 2011 period. The decrease in the cost of revenues as a percentage of revenues was primarily due to lower home construction costs on the homes delivered in the fiscal 2012 period as compared to those delivered in the fiscal 2011 period. The lower costs were due to the continued benefits realized from cost savings of our new centralized purchasing initiatives and the delivery of fewer quick-delivery homes in the fiscal 2012 period, as compared to the fiscal 2011 period, as our supply of such homes had dwindled. Generally, we give higher sales incentives on quick-delivery homes than our to be built homes.

South

Revenues in the three months ended January 31, 2012 were higher than those in the comparable period of fiscal 2011 by $14.6 million, or 23.5%. This increase was attributable to a 17.4% increase in the number of homes delivered and a 5.2% increase in the average price of the homes delivered. The increase in the number of homes delivered in the fiscal 2012 period, as compared to the fiscal 2011 period, was primarily due to a higher backlog at October 31, 2011, as compared to October 31, 2010, which was the result of an increase in the number of selling communities in fiscal 2011 as compared to fiscal 2010. The increase in the average price of the homes delivered in the three-month period ended January 31, 2012, as compared to the three-month period ended January 31, 2011, was primarily attributable to a shift in the number of homes delivered to more expensive areas and/or products in the fiscal 2012 period, as compared to the fiscal 2011 period.

For the three months ended January 31, 2012, the value of net contracts signed increased by $27.1 million, or 39.2%, as compared to the fiscal 2011 period. The increase was attributable to increases of 26.2% and 10.3% in the number and average value of net contracts signed, respectively. The increase in the number of net contracts signed in the three-month period ended January 31, 2012, as compared to the three-month period ended January 31, 2011, was primarily due to an increase in the number of net contracts signed in Florida as the result of increased demand and an increase in the number of selling communities in the fiscal 2012 period as compared to the fiscal 2011 period, offset, in part, by a decrease in the number of net contracts signed in Texas. The increase in the average sales price of net contracts signed was primarily due to a shift in the number of contracts signed to more expensive areas and/or products in the fiscal 2012 period, as compared to the fiscal 2011 period.

45

For the three months ended January 31, 2012 and 2011, we reported losses before income taxes of $2.1 million and $1.4 million, respectively. The increase in the loss before income taxes was primarily due to an increase in inventory impairment charges and write-offs in the 2012 period, as compared to the fiscal 2011 period, partially offset by lower costs on homes delivered in the fiscal 2012 period as compared to the fiscal 2011 period and higher earnings from the increased amount of revenues in the fiscal 2012 period, as compared to the fiscal 2011 period. In the three-month periods ended January 31, 2012 and 2011, we recognized inventory impairment charges and write-offs of $5.6 million and $0.3 million, respectively. Cost of revenues as a percentage of revenues, excluding impairments, was 82.1% of revenues in the three-month period ended January 31, 2012, as compared to 85.5% in the fiscal 2011 period. The decrease in cost of revenues, excluding inventory impairment charges, as a percentage of revenue in the fiscal 2012 period, as compared to the fiscal 2011 period, was due primarily to lower costs on the homes delivered in the fiscal 2012 period than those delivered in the fiscal 2011 period. The lower costs were due to the delivery of fewer quick-delivery homes in the fiscal 2012 period, as compared to the fiscal 2011 period, as our supply of such homes has dwindled, and to reduced sales incentives in general on the homes delivered in fiscal 2012, as compared to fiscal 2011. Generally, we give higher sales incentives on quick-delivery homes than on our to be built homes. In addition, reduced costs were realized in fiscal 2012 because fewer homes were delivered from certain higher cost communities in the fiscal 2012 period, as compared to the fiscal 2011 period, as these communities closed out.

West

Revenues in the three-month period ended January 31, 2012 were lower than those in the three-month period ended January 31, 2011 by $16.8 million, or 19.6%. The decrease in revenues was attributable to an 11.0% decrease in the number of homes delivered and a 9.6% decrease in the average sales price of the homes delivered. The decrease in the number of homes delivered in the fiscal 2012 period, as compared to fiscal 2011, was primarily due to a decrease in the number of homes delivered in California as the result of lower backlog of homes at October 31, 2011, as compared to October 31, 2010, offset, in part, by the delivery of 23 homes in Washington from CamWest. The decrease in the average price of the homes delivered was primarily due to a shift in the number of homes delivered to less expensive products and/or locations, primarily in Arizona and Washington, in the fiscal 2012 period, as compared to the fiscal 2011 period.

The value of net contracts signed during the three months ended January 31, 2012 increased $10.2 million, or 18.4%, as compared to the fiscal 2011 period. This increase was due to a 10.0% increase in the number of net contracts signed and a 7.6% increase in the average value of each net contract signed. The increase in the number of net contracts signed was due to an increase in the number of selling communities in the fiscal 2012 period, as compared to the fiscal 2011 period. The increase in the average sales price of net contracts signed was primarily due to a shift in the number of contracts signed to more expensive areas and/or products in the fiscal 2012 period, as compared to the fiscal 2011 period.

We reported income before income taxes for the three-month period ended January 31, 2012 of $5.6 million as compared to a loss before income taxes of $15.2 million for the three-month period ended January 31, 2011. The increase in income before income taxes was primarily due to a $20.0 million impairment charge that we recognized on our South Edge investment in the fiscal 2011 period and a $3.2 million decrease in inventory impairment charges and write-offs in the fiscal 2012 period, as compared to the fiscal 2011 period, offset, in part, by higher cost of revenues, excluding inventory impairment charges, as a percentage of revenues, in the fiscal 2012 period, as compared to the fiscal 2011 period. In the three-month periods ended January 31, 2012 and 2011, we recognized inventory impairment charges and write-offs of $0.1 million and $3.3 million, respectively. Cost of revenues as a percentage of revenues, excluding impairments, was 82.2% of revenues in the three-month period ended January 31, 2012, as compared to 80.5% in the fiscal 2011 period. The increase in cost of revenues, excluding inventory impairment charges, as a percentage of revenue in the fiscal 2012 period, as compared to the fiscal 2011 period, was primarily due to the impact of purchase accounting on the homes delivered in the fiscal 2012 period from our acquisition of CamWest.

Other

For the three months ended January 31, 2012 and 2011, other loss before income taxes was $21.8 million and $15.6 million, respectively. The increase in the loss was primarily due to higher unallocated SG&A of $7.5 million and a $1.1 million decrease in income from an unconsolidated entity, in the fiscal 2012 period, as compared to the fiscal 2011 period, offset, in part, by a $2.7 million increase in income from our ancillary business in the fiscal 2012 period, as compared to the fiscal 2011 period. The increase in unallocated SG&A in the three months ended January 31, 2012, as compared to the three months ended January 31, 2011, was primarily due to an insurance claim recovery and the reversal of previously accrued costs due to changes in accounting estimates in the three months ended January 31, 2011.

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ITEM 3. 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 impact 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 table below sets forth, at January 31, 2012, our debt obligations, principal cash flows by scheduled maturity, weighted-average interest rates and estimated fair value (amounts in thousands):

		September 30,			September 30,			September 30,		September 30,
	Fixed-rate debt						Variable-rate debt
				Weighted-					Weighted-
Fiscal year of				average					average
maturity	Amount			interest rate			Amount		interest rate
2012	$	23,597			3.47	%	$	32,014		3.48	%
2013		292,524			6.31	%		150		0.27	%
2014		274,058			4.93	%		150		0.27	%
2015		301,718			5.15	%		150		0.27	%
2016		1,808			5.83	%		150		0.27	%
Thereafter		686,250			7.95	%		11,945		0.18	%
Discount		(7,929	)
Total	$	1,572,026			6.52	%	$	44,559		2.56	%
Fair value at January 31, 2012	$	1,709,911					$	44,559

Based upon the amount of variable-rate debt outstanding at January 31, 2012, and holding the variable-rate debt balance constant, each 1% increase in interest rates would increase the interest incurred by us by approximately $0.45 million per year.

ITEM 4. 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 (the “Exchange Act”), as of the end of the period covered by this report (the “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 Securities and Exchange Commission’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.

There has not been any change in internal control over financial reporting during our quarter ended January 31, 2012 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

47

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are involved in various claims and litigation arising principally in the ordinary course of business.

In January 2006, we received a request for information pursuant to Section 308 of the Clean Water Act from Region 3 of the U.S. Environmental Protection Agency (“EPA”) concerning storm water discharge practices in connection with our homebuilding projects in the states that comprise EPA Region 3. We provided information to the EPA pursuant to the request. The U.S. Department of Justice (“DOJ”) has assumed responsibility for the oversight of this matter and has alleged that we have violated regulatory requirements applicable to storm water discharges and that it may seek injunctive relief and/or civil penalties. We are presently engaged in settlement discussions with representatives from the DOJ and the EPA.

On November 4, 2008, a shareholder derivative action was filed in the Chancery Court of Delaware by Milton Pfeiffer against Robert I. Toll, Zvi Barzilay, Joel H. Rassman, Bruce E. Toll, Paul E. Shapiro, Robert S. Blank, Carl B. Marbach, and Richard J. Braemer. The plaintiff purports to bring his claims on behalf of Toll Brothers, Inc. and alleges that the director and officer defendants breached their fiduciary duties to us and our stockholders with respect to their sales of shares of our common stock during the period from December 9, 2004 to November 8, 2005. The plaintiff alleges that such stock sales were made while in possession of non-public, material information about us. The plaintiff seeks contribution and indemnification from the individual director and officer defendants for costs and expenses incurred by us in connection with defending a now-settled related class action. In addition, again purportedly on our behalf, the plaintiff seeks disgorgement of the defendants’ profits from their stock sales.

On March 4, 2009, a second shareholder derivative action was brought by Oliverio Martinez in the U.S. District Court for the Eastern District of Pennsylvania. The case was brought against the eleven then-current members of our board of directors and the Company’s Chief Accounting Officer. This complaint alleges breaches of fiduciary duty, waste of corporate assets, and unjust enrichment during the period from February 2005 to November 2006. The complaint further alleges that certain of the defendants sold our stock during this period while in possession of allegedly non-public, material information and plaintiff seeks disgorgement of profits from these sales. The complaint also asserts a claim for equitable indemnity for costs and expenses incurred by us in connection with defending a now-settled related class action lawsuit.

On April 1, 2009, a third shareholder derivative action was filed by William Hall, also in the U.S. District Court for the Eastern District of Pennsylvania, against the eleven then-current members of our board of directors and the Company’s Chief Accounting Officer. This complaint is identical to the previous shareholder complaint filed in Philadelphia and, on July 14, 2009, the two cases were consolidated. On April 30, 2010, the plaintiffs filed an amended consolidated complaint.

The Company’s 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.

We believe the disposition of these matters will not have a material adverse effect on our results of operations and liquidity or on our financial condition.

ITEM 1A. RISK FACTORS

There have been no material changes in our risk factors as previously disclosed in our Form 10-K for the fiscal year ended October 31, 2011.

48

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the three months ended January 31, 2012, we repurchased the following shares of our common stock:

		September 30,		September 30,		September 30,		September 30,
					Total number		Maximum
			Average		of shares		number of shares
	Total number		price		purchased as part of		that may yet be
	of shares		paid per		publicly announced		purchased under the
Period	purchased (a)(b)		share		plans or programs (c)		plans or programs (c)
	(in thousands)				(in thousands)		(in thousands)
November 1, 2011 to November 30, 2011		1	$	18.85		1		8,785
December 1, 2011 to December 31, 2011		5	$	20.43		1		8,784
January 1, 2012 to January 31, 2012		1	$	22.56		1		8,783
		7	$	20.59		3

(a) The terms of our Restricted Stock Unit awards (“RSUs”) permit us to withhold from the total number of shares of our common stock that an employee is entitled to receive upon distribution pursuant to an RSU that number of shares having a fair market value at the time of distribution equal to the applicable income tax withholdings, and remit the remaining shares to the employee. During the three months ended January 31, 2012, we withheld 20 shares subject to RSUs with a fair market value per share of $18.86 to cover income taxes on distributions and distributed 42 shares to employees. The 20 shares withheld are not included in the total number of shares purchased in the table above.

(b) Our stock incentive plans permit participants to exercise non-qualified stock options using a “net exercise” method at the discretion of the Executive Compensation Committee of our Board of Directors. 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 months ended January 31, 2012, the net exercise method was employed to exercise options to acquire 215,912 shares of our common stock; we withheld 118,186 of the shares subject to the options to cover $2.4 million of option exercise costs and income tax withholdings and issued the remaining 97,726 shares to the participants. The 118,186 shares withheld under the net exercise method are not included in the total number of shares purchased in the table above. In addition, our stock incentive plans also permit participants to use the fair market value of Company common stock they own to pay for the exercise of stock options (“stock swap method”). During the three months ended January 31, 2012, the Company received 4,065 shares with an average fair market value per share of $20.57 for the exercise of 7,688 options using the stock swap method. The 4,065 shares used under the stock swap method are included in the total number of shares purchased in the table above.

(c) On March 20, 2003, we announced that our Board of Directors had authorized the repurchase of up to 20 million shares of our common stock, par value $.01, from time to time, in open market transactions or otherwise, for the purpose of providing shares for our various employee benefit plans. The Board of Directors did not fix an expiration date for the repurchase program.

Except as set forth above, we have not repurchased any of our equity securities during the three-month period ended January 31, 2012.

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 of a number of factors, including our earnings, capital requirements, our operating and financial condition, and any contractual limitations then in effect. In addition, our credit facility requires us to maintain a minimum tangible net worth (as defined in the credit agreement), which restricts the amount of dividends we may pay. At January 31, 2012, under the most restrictive of these provisions, we could have paid up to approximately $683.1 million of cash dividends.

We have not paid any cash dividends on our common stock to date and expect that, for the foreseeable future, we will not do so. Rather, we will follow a policy of retaining earnings in order to finance future growth in our business and, from time to time, repurchase shares of our common stock.

49

ITEM 6. EXHIBITS

4.1*	Eighteenth Supplemental Indenture dated as of October 27, 2011 by and among the parties listed on Schedule A thereto, and Bank of New York Mellon, as Successor Trustee, is filed herewith.
4.2*	Nineteenth Supplemental Indenture dated as of November 1, 2011 by and among the parties listed on Schedule A thereto, and Bank of New York Mellon, as Successor Trustee, is filed herewith.
4.3*	First Supplemental Indenture dated as of October 27, 2011 by and among the parties listed on Schedule A hereto, and Bank of New York Mellon, as Trustee, is filed herewith.
4.4*	Second Supplemental Indenture dated as of November 1, 2011 by and among the parties listed on Schedule A thereto, and Bank of New York Mellon, as Trustee, is filed herewith.
4.5	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.
4.6	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 to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 7, 2012.
4.7	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.
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.INS**	XBRL Instance Document
101.SCH**	XBRL Schema Document
101.CAL**	XBRL Calculation Linkbase Document
101.LAB**	XBRL Labels Linkbase Document
101.PRE**	XBRL Presentation Linkbase Document
101.DEF**	XBRL Definition Linkbase Document

* Filed electronically herewith.

** Furnished electronically herewith.

50

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 thereunto duly authorized.

	TOLL BROTHERS, INC. (Registrant)
Date: March 8, 2012	By:	/s/ Martin P. Connor
		Martin P. Connor
		Senior Vice President, Treasurer and Chief Financial Officer (Principal Financial Officer)
Date: March 8, 2012	By:	/s/ Joseph R. Sicree
		Joseph R. Sicree
		Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)

51

EX-4.1

EXHIBIT 4.1

THIS EIGHTEENTH SUPPLEMENTAL INDENTURE, dated as of OCTOBER 27, 2011, by and among the parties listed on Schedule A hereto (each an “Additional Guarantor” and collectively, the “Additional Guarantors”) and THE BANK OF NEW YORK MELLON, as successor to J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION and BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION, as trustee (the “Trustee”). Capitalized terms used in this Eighteenth 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 (as defined on Exhibit A attached hereto).

RECITALS

WHEREAS, Section 4.04 of the Indenture provides that if in accordance with the provisions of the Bank 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 Bank 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 Eighteenth Supplemental Indenture; and

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

NOW, THEREFORE IT IS AGREED:

Section 1. Joinder. Each Additional Guarantor agrees that by its entering into this Eighteenth Supplemental Indenture it hereby unconditionally guarantees all of the Issuer’s obligations under (i) the 6.875% Senior Notes, (ii) the 5.95% Senior Notes, (iii) the 4.95% Senior Notes, (iv) the 5.15% Senior Notes, (v) any other Securities of any Series that has the benefit of Guarantees of other Subsidiaries of the Company, and (vi) the Indenture (as it relates to all such Series) on the terms set forth in the Indenture, as if each such Additional Guarantor was a party to the Original Indenture.

Section 2. Ratification of Indenture. This Eighteenth 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 Eighteenth 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 Eighteenth Supplemental Indenture by each Additional Guarantor shall bind each such 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 Eighteenth 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 Eighteenth Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York. This Eighteenth Supplemental Indenture is subject to the provisions of the TIA that are required to be part of this Eighteenth Supplemental Indenture and shall, to the extent applicable, be governed by such provisions.

Section 7. Counterparts. This Eighteenth 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 Eighteenth Supplemental Indenture.

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

THE ADDITIONAL GUARANTORS NAMED ON SCHEDULE A HERETO, as Guarantors

By: /s/ Joseph R. Sicree

Name: Joseph R. Sicree

Title: Designated Officer

THE BANK OF NEW YORK MELLON

as Trustee

By: /s/ Mary Miselis

Name: Mary Miselis

Title: Vice President

SCHEDULE A

Company Name	Member
Toll Midwest LLC	Toll Northeast LP Company, Inc.
Toll Southwest LLC	Toll Bros., Inc.
Toll West Coast LLC	Toll Bros., Inc.

EXHIBIT A

For purposes of this Eighteenth Supplemental Indenture, the term “Indenture” shall mean that certain Indenture, dated as of November 22, 2002 (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 6.875% Senior Notes due 2012 (the “6.875% 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 November 22, 2002; (ii) the First Supplemental Indenture, dated May 1, 2003 (the “First Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such First Supplemental Indenture, thereby became Guarantors) and the Trustee; (iii) the Authorizing Resolutions, related to the issuance of $250,000,000 aggregate principal amount of 5.95% Senior Notes due 2013 (the “5.95% Senior Notes”) 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 September 3, 2003; (iv) the Second Supplemental Indenture, dated November 3, 2003 (the “Second Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Second Supplemental Indenture, thereby became Guarantors) and the Trustee; (v) the Third Supplemental Indenture, dated January 26, 2004 (the “Third Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Third Supplemental Indenture, thereby became Guarantors) and the Trustee; (vi) the Fourth Supplemental Indenture, dated March 1, 2004 (the “Fourth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Fourth Supplemental Indenture, thereby became Guarantors) and the Trustee; (vii) the Authorizing Resolutions, related to the issuance of $300,000,000 aggregate principal amount of 4.95% Senior Notes due 2014 (the “4.95% Senior Notes”) 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 March 9, 2004; (viii) the Fifth Supplemental Indenture, dated September 20, 2004 (the “Fifth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Fifth Supplemental Indenture, thereby became Guarantors) and the Trustee; (ix) the Sixth Supplemental Indenture, dated as of October 28, 2004 (the “Sixth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Sixth Supplemental Indenture, thereby became Guarantors) and the Trustee; (x) the Seventh Supplemental Indenture, dated as of October 31, 2004 (the “Seventh Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Seventh Supplemental Indenture, thereby became Guarantors) and the Trustee; (xi) the Eighth Supplemental Indenture, dated as of January 31, 2005 (the “Eighth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Eighth Supplemental Indenture, thereby became Guarantors) and the Trustee; (xii) the Authorizing Resolutions, related to the issuance of $300,000,000 aggregate principal amount of 5.15% Senior Notes due 2015 (the “5.15% Senior Notes”) 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 May 26, 2005; (xiii) the Ninth Supplemental Indenture, dated as of June 6, 2005 (the “Ninth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Ninth Supplemental Indenture, thereby became Guarantors) and the Trustee; (xiv) the Tenth Supplemental Indenture, dated as of August 1, 2005 (the “Tenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Tenth Supplemental Indenture, thereby became Guarantors) and the Trustee; (xv) the Eleventh Supplemental Indenture, dated as of January 31, 2006 (the “Eleventh Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Eleventh Supplemental Indenture, thereby became Guarantors) and the Trustee; (xvi) the Twelfth Supplemental Indenture, dated as of April 30, 2006 (the “Twelfth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Twelfth Supplemental Indenture, thereby became Guarantors) and the Trustee; (xvii) the Thirteenth Supplemental Indenture, dated as of July 31, 2006 (the “Thirteenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Thirteenth Supplemental Indenture, thereby became Guarantors) and the Trustee; (xviii) the Fourteenth Supplemental Indenture, dated as of October 31, 2006 (the “Fourteenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Fourteenth Supplemental Indenture, thereby became Guarantors) and the Trustee; (xix) the Fifteenth Supplemental Indenture, dated as of June 25, 2007 (the “Fifteenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Fifteenth Supplemental Indenture, thereby became Guarantors) and the Trustee; (xx) the Sixteenth Supplemental Indenture, dated as of June 27, 2007 (the “Sixteenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Sixteenth Supplemental Indenture, reaffirmed their obligations under the Indenture) and the Trustee; and (xxi) the Seventeenth Supplemental Indenture, dated as of January 31, 2008 (the “Seventeenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Seventeenth Supplemental Indenture, reaffirmed their obligations under the Indenture) and the Trustee, and as may be further supplemented (including by this Eighteenth Supplemental Indenture) and/or amended.

EX-4.2

EXHIBIT 4.2

THIS NINETEENTH SUPPLEMENTAL INDENTURE, dated as of NOVEMBER 1, 2011, by and among the parties listed on Schedule A hereto (each an “Additional Guarantor” and collectively, the “Additional Guarantors”) and THE BANK OF NEW YORK MELLON, as successor to J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION and BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION, as trustee (the “Trustee”). Capitalized terms used in this Nineteenth 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 (as defined on Exhibit A attached hereto).

RECITALS

WHEREAS, Section 4.04 of the Indenture provides that if in accordance with the provisions of the Bank 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 Bank 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 Nineteenth Supplemental Indenture; and

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

NOW, THEREFORE IT IS AGREED:

Section 1. Joinder. Each Additional Guarantor agrees that by its entering into this Nineteenth Supplemental Indenture it hereby unconditionally guarantees all of the Issuer’s obligations under (i) the 6.875% Senior Notes, (ii) the 5.95% Senior Notes, (iii) the 4.95% Senior Notes, (iv) the 5.15% Senior Notes, (v) any other Securities of any Series that has the benefit of Guarantees of other Subsidiaries of the Company, and (vi) the Indenture (as it relates to all such Series) on the terms set forth in the Indenture, as if each such Additional Guarantor was a party to the Original Indenture.

Section 2. Ratification of Indenture. This Nineteenth 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 Nineteenth 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 Nineteenth Supplemental Indenture by each Additional Guarantor shall bind each such 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 Nineteenth 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 Nineteenth Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York. This Nineteenth Supplemental Indenture is subject to the provisions of the TIA that are required to be part of this Nineteenth h Supplemental Indenture and shall, to the extent applicable, be governed by such provisions.

Section 7. Counterparts. This Nineteenth 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 Nineteenth Supplemental Indenture.

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

THE ADDITIONAL GUARANTORS NAMED

ON SCHEDULE A HERETO, as Guarantors

By: /s/ Joseph R. Sicree

Name: Joseph R. Sicree

Title: Designated Officer

THE BANK OF NEW YORK MELLON,

as Trustee

By: /s/ Mary Miselis

Name: Mary Miselis

Title: Vice President

SCHEDULE A

New Guarantors as of November 1, 2011

	State of Organization
Limited Liability Companies
1450 Washington LLC	New Jersey
Hatboro Road Associates LLC	Pennsylvania
PT Maxwell Holdings, LLC	New Jersey
PT Maxwell, L.L.C.	New Jersey
Toll CA I LLC	California
Toll CA Note II LLC	California
Toll FL IV LLC	Florida
Toll Houston TX LLC	Texas
Toll Lexington LLC	New York
Toll MA I LLC	Massachusetts
Toll MA II LLC	Massachusetts
Toll NC I LLC	North Carolina
Toll NC IV LLC	North Carolina
Toll NC Note II LLC	North Carolina
Toll NC Note LLC	North Carolina
Toll TX Note LLC	Texas
Partnerships
Toll CT III Limited Partnership	Connecticut
Toll DE II LP	Delaware
Toll FL X Limited Partnership	Florida
Toll MD XI Limited Partnership	Maryland
Toll NC III LP	North Carolina
Toll NY II L.P.	New York
Toll NY III L.P.	New York
Toll NY IV L.P.	New York
Toll PA XIV, L.P.	Pennsylvania
Toll PA XV, L.P.	Pennsylvania
Toll SC IV, L.P.	South Carolina
Toll WA LP	Washington
Corporations
Toll WA GP Corp.	Washington

EXHIBIT A

For purposes of this Nineteenth Supplemental Indenture, the term “Indenture” shall mean that certain Indenture, dated as of November 22, 2002 (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 6.875% Senior Notes due 2012 (the “6.875% 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 November 22, 2002; (ii) the First Supplemental Indenture, dated May 1, 2003 (the “First Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such First Supplemental Indenture, thereby became Guarantors) and the Trustee; (iii) the Authorizing Resolutions, related to the issuance of $250,000,000 aggregate principal amount of 5.95% Senior Notes due 2013 (the "5.95% Senior Notes") 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 September 3, 2003; (iv) the Second Supplemental Indenture, dated November 3, 2003 (the "Second Supplemental Indenture"), by and among the parties listed on Schedule A thereto (who, pursuant to such Second Supplemental Indenture, thereby became Guarantors) and the Trustee; (v) the Third Supplemental Indenture, dated January 26, 2004 (the "Third Supplemental Indenture"), by and among the parties listed on Schedule A thereto (who, pursuant to such Third Supplemental Indenture, thereby became Guarantors) and the Trustee; (vi) the Fourth Supplemental Indenture, dated March 1, 2004 (the “Fourth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Fourth Supplemental Indenture, thereby became Guarantors) and the Trustee; (vii) the Authorizing Resolutions, related to the issuance of $300,000,000 aggregate principal amount of 4.95% Senior Notes due 2014 (the “4.95% Senior Notes”) 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 March 9, 2004; (viii) the Fifth Supplemental Indenture, dated September 20, 2004 (the “Fifth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Fifth Supplemental Indenture, thereby became Guarantors) and the Trustee; (ix) the Sixth Supplemental Indenture, dated as of October 28, 2004 (the “Sixth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Sixth Supplemental Indenture, thereby became Guarantors) and the Trustee; (x) the Seventh Supplemental Indenture, dated as of October 31, 2004 (the “Seventh Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Seventh Supplemental Indenture, thereby became Guarantors) and the Trustee; (xi) the Eighth Supplemental Indenture, dated as of January 31, 2005 (the “Eighth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Eighth Supplemental Indenture, thereby became Guarantors) and the Trustee; (xii) the Authorizing Resolutions, related to the issuance of $300,000,000 aggregate principal amount of 5.15% Senior Notes due 2015 (the “5.15% Senior Notes”) 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 May 26, 2005; (xiii) the Ninth Supplemental Indenture, dated as of June 6, 2005 (the “Ninth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Ninth Supplemental Indenture, thereby became Guarantors) and the Trustee; (xiv) the Tenth Supplemental Indenture, dated as of August 1, 2005 (the “Tenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Tenth Supplemental Indenture, thereby became Guarantors) and the Trustee; (xv) the Eleventh Supplemental Indenture, dated as of January 31, 2006 (the “Eleventh Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Eleventh Supplemental Indenture, thereby became Guarantors) and the Trustee; (xvi) the Twelfth Supplemental Indenture, dated as of April 30, 2006 (the “Twelfth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Twelfth Supplemental Indenture, thereby became Guarantors) and the Trustee; (xvii) the Thirteenth Supplemental Indenture, dated as of July 31, 2006 (the “Thirteenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Thirteenth Supplemental Indenture, thereby became Guarantors) and the Trustee; (xviii) the Fourteenth Supplemental Indenture, dated as of October 31, 2006 (the “Fourteenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Fourteenth Supplemental Indenture, thereby became Guarantors) and the Trustee; (xix) the Fifteenth Supplemental Indenture, dated as of June 25, 2007 (the “Fifteenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Fifteenth Supplemental Indenture, thereby became Guarantors) and the Trustee; (xx) the Sixteenth Supplemental Indenture, dated as of June 27, 2007 (the “Sixteenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Sixteenth Supplemental Indenture, reaffirmed their obligations under the Indenture) and the Trustee; (xxi) the Seventeenth Supplemental Indenture, dated as of January 31, 2008 (the “Seventeenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Seventeenth Supplemental Indenture, reaffirmed their obligations under the Indenture) and the Trustee; and (xxii) the Eighteenth Supplemental Indenture, dated as of October 27, 2011 (the “Eighteenth Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such Seventeenth Supplemental Indenture, reaffirmed their obligations under the Indenture) and the Trustee, and as may be further supplemented (including by this Nineteenth Supplemental Indenture) and/or amended.

EX-4.3

EXHIBIT 4.3

THIS FIRST SUPPLEMENTAL INDENTURE, dated as of OCTOBER 27, 2011, by and among 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 First 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 (as defined on Exhibit A attached hereto).

RECITALS

WHEREAS, Section 4.04 of the Indenture provides that if in accordance with the provisions of the Bank 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 Bank 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 First Supplemental Indenture; and

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

NOW, THEREFORE IT IS AGREED:

Section 1. Joinder. Each Additional Guarantor agrees that by its entering into this First Supplemental Indenture it hereby unconditionally guarantees all of the Issuer’s obligations under (i) the 8.91% Senior Notes, (ii) the 6.75% Senior Notes, (iii) any other Securities of any Series that has the benefit of Guarantees of other Subsidiaries of the Company, and (vi) the Indenture (as it relates to all such Series) on the terms set forth in the Indenture, as if each such Additional Guarantor was a party to the Original Indenture.

Section 2. Ratification of Indenture. This First 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 First 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 First Supplemental Indenture by each Additional Guarantor shall bind each such 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 First 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 First Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York. This First Supplemental Indenture is subject to the provisions of the TIA that are required to be part of this First Supplemental Indenture and shall, to the extent applicable, be governed by such provisions.

Section 7. Counterparts. This First 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 First Supplemental Indenture.

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

THE ADDITIONAL GUARANTORS NAMED

ON SCHEDULE A HERETO, as Guarantors

By: /s/ Joseph R. Sicree

Name: Joseph R. Sicree

Title: Designated Officer

THE BANK OF NEW YORK MELLON,

as Trustee

By: /s/ Mary Miselis

Name: Mary Miselis

Title: Vice President

SCHEDULE A

Company Name	Member
Toll Midwest LLC	Toll Northeast LP Company, Inc.
Toll Southwest LLC	Toll Bros., Inc.
Toll West Coast LLC	Toll Bros., Inc.

EXHIBIT A

For purposes of this First Supplemental Indenture, the term “Indenture” shall mean that certain Indenture, dated as of April 20, 2009 (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 $400,000,000 aggregate principal amount of 8.91% Senior Notes due 2017 (the “8.91% 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 April 20, 2009; (ii) the Authorizing Resolutions, related to the issuance of $250,000,000 aggregate principal amount of 6.75% Senior Notes due 2019 (the "6.75% Senior Notes") 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 September 22, 2009; and as may be further supplemented (including by this First Supplemental Indenture) and/or amended.

EX-4.4

EXHIBIT 4.4

THIS SECOND SUPPLEMENTAL INDENTURE, dated as of NOVEMBER 1, 2011, by and among 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 First 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 (as defined on Exhibit A attached hereto).

RECITALS

WHEREAS, Section 4.04 of the Indenture provides that if in accordance with the provisions of the Bank 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 Bank 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 Second Supplemental Indenture; and

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

NOW, THEREFORE IT IS AGREED:

Section 1. Joinder. Each Additional Guarantor agrees that by its entering into this Second Supplemental Indenture it hereby unconditionally guarantees all of the Issuer’s obligations under (i) the 8.91% Senior Notes, (ii) the 6.75% Senior Notes, (iii) any other Securities of any Series that has the benefit of Guarantees of other Subsidiaries of the Company, and (ii) the Indenture (as it relates to all such Series) on the terms set forth in the Indenture, as if each such Additional Guarantor was a party to the Original Indenture.

Section 2. Ratification of Indenture. This 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 Second 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 First Supplemental Indenture by each Additional Guarantor shall bind each such 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 SecondSupplemental 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 Second Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York. This Second Supplemental Indenture is subject to the provisions of the TIA that are required to be part of this Second Supplemental Indenture and shall, to the extent applicable, be governed by such provisions.

Section 7. Counterparts. This 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 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 Second Supplemental Indenture.

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

THE ADDITIONAL GUARANTORS NAMED

ON SCHEDULE A HERETO, as Guarantors

By: /s/ Joseph R. Sicree

Name: Joseph R. Sicree

Title: Designated Officer

THE BANK OF NEW YORK MELLON,

as Trustee

By: /s/ Mary Miselis

Name: Mary Miselis

Title: Vice President

SCHEDULE A

New Guarantors as of November 1, 2011

	State of Organization
Limited Liability Companies
1450 Washington LLC	New Jersey
Hatboro Road Associates LLC	Pennsylvania
PT Maxwell Holdings, LLC	New Jersey
PT Maxwell, L.L.C.	New Jersey
Toll CA I LLC	California
Toll CA Note II LLC	California
Toll FL IV LLC	Florida
Toll Houston TX LLC	Texas
Toll Lexington LLC	New York
Toll MA I LLC	Massachusetts
Toll MA II LLC	Massachusetts
Toll NC I LLC	North Carolina
Toll NC IV LLC	North Carolina
Toll NC Note II LLC	North Carolina
Toll NC Note LLC	North Carolina
Toll TX Note LLC	Texas
Partnerships
Toll CT III Limited Partnership	Connecticut
Toll DE II LP	Delaware
Toll FL X Limited Partnership	Florida
Toll MD XI Limited Partnership	Maryland
Toll NC III LP	North Carolina
Toll NY II L.P.	New York
Toll NY III L.P.	New York
Toll NY IV L.P.	New York
Toll PA XIV, L.P.	Pennsylvania
Toll PA XV, L.P.	Pennsylvania
Toll SC IV, L.P.	South Carolina
Toll WA LP	Washington
Corporations
Toll WA GP Corp.	Washington

EXHIBIT A

For purposes of this Second Supplemental Indenture, the term “Indenture” shall mean that certain Indenture, dated as of April 20, 2009 (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 $400,000,000 aggregate principal amount of 8.91% Senior Notes due 2017 (the “8.91% 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 April 20, 2009; (ii) the Authorizing Resolutions, related to the issuance of $250,000,000 aggregate principal amount of 6.75% Senior Notes due 2019 (the "6.75% Senior Notes") 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 September 22, 2009; and (iii) the First Supplemental Indenture, dated as of October 27, 2011 (the “First Supplemental Indenture”), by and among the parties listed on Schedule A thereto (who, pursuant to such First Supplemental Indenture, thereby became Guarantors) and the Trustee; and as may be further supplemented (including by this Second Supplemental Indenture) and/or amended.

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Douglas C. Yearley Jr., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q 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: March 8, 2012

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Martin P. Connor, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q 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: March 8, 2012

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 Quarterly Report of Toll Brothers, Inc. (the “Company”) on Form 10-Q for the three months ended January 31, 2012, 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: March 8, 2012

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 Quarterly Report of Toll Brothers, Inc. (the “Company”) on Form 10-Q for the three months ended January 31, 2012, 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: March 8, 2012

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Commitments and Contingencies (Tables)

3 Months Ended

Jan. 31, 2012

Legal Proceedings, Commitments and Contingencies [Abstract]

Company purchase commitments

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Aggregate purchase commitments:
Unrelated parties	$	539,636	$	551,905
Unconsolidated entities that the Company has investments in		124,387		12,471
Total	$	664,023	$	564,376
Deposits against aggregate purchase commitments	$	32,199	$	37,987
Credit to be received from amounts previously contributed to unconsolidated entities		75,600
Additional cash required to acquire land		556,224		526,389
Total	$	664,023	$	564,376

Company mortgage commitments

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Aggregate mortgage loan commitments:
IRLCs	$	92,623	$	129,553
Non-IRLCs		342,633		306,722
Total	$	435,256	$	436,275
Investor commitments to purchase:
IRLCs	$	92,623	$	129,553
Mortgage loans receivable		34,385		60,680
Total	$	127,008	$	190,233

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Subsequent Event/Senior Notes Payable (Details Textual) (USD $)	1 Months Ended	3 Months Ended
	Feb. 29, 2012	Apr. 30, 2012	Jan. 31, 2012	Oct. 31, 2011	Feb. 07, 2012 5.875 % senior notes due 2022 [Member]	Feb. 07, 2012 Senior notes issued for cash [Member]	Mar. 05, 2012 Senior notes issued through an exchange [Member]	Mar. 31, 2012 6.875% Senior notes due 2012 [Member]	Mar. 05, 2012 6.875% Senior notes due 2012 [Member]	Mar. 31, 2012 5.95% Senior notes due 2013 [Member]	Mar. 05, 2012 5.95% Senior notes due 2013 [Member]
Senior Note Payable (Textual) [Abstract]
Issued Senior Notes			$ 1,491,442,000	$ 1,490,972,000		$ 300,000,000	$ 119,900,000
Interest rate on notes					5.875%			6.875%		5.95%
Proceeds from issuance of the Senior Notes	296,200,000
Senior Notes Exchanged									80,700,000		36,900,000
Costs associated with the exchange of both series of notes		$ 1,100,000

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Inventory (Details Textual) (USD $)	3 Months Ended
	Jan. 31, 2012 Contracts	Jan. 31, 2011
Inventory (Textual) [Abstract]
Reclassification of inventory to property, construction and office equipment	$ 0	$ 20,005,000
Aggregate purchase price of lands	437,900,000
Deposits for purchase of lands with VIE entities	25,500,000
Number of VIE Land Purchase Contracts	57
Reduction in Capitalized Interest	$ 53,900,000	$ 53,800,000

XML

Stock Repurchase Program (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011	Mar. 31, 2003
Share Repurchase Program
Number of shares purchased	3,000	8,000
Average price per share	$ 20.61	$ 19.23
Remaining authorization at January 31:	8,783	11,822	20,000
Stock Repurchase Program (Textual) [Abstract]
Authorization to repurchase shares	8,783	11,822	20,000
Par value of common stock repurchased			$ 0.01

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Accrued Expenses (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2012	Oct. 31, 2011	Jan. 31, 2011	Oct. 31, 2010
Accrued expenses
Land, land development and construction	$ 103,955	$ 109,574
Compensation and employee benefits	91,016	96,037
Insurance and litigation	127,260	130,714
Commitments to unconsolidated entities	2,609	60,130
Warranty	43,109	42,474	45,928	45,835
Interest	29,611	25,968
Other	53,854	56,154
Accrued expenses, Total	$ 451,414	$ 521,051

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Interest and Other Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Revenues and expenses of non-core ancillary businesses
Revenue	$ 17,311	$ 13,823
Expense	$ 14,089	$ 13,266

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Inventory (Details 1) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2012 Community	Oct. 31, 2011 Community
Land owned for future communities [Member]
Temporarily Closed communities
Number of Communities	44	43
Carrying Value	$ 245,025	$ 256,468
Operating communities [Member]
Temporarily Closed communities
Number of Communities	6	2
Carrying Value	$ 49,723	$ 11,076

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Employee Retirement Plans (Tables)

3 Months Ended

Jan. 31, 2012

Employee Retirement Plans [Abstract]

Costs and payments related to supplemental retirement plans

		September 30,		September 30,
	Three months  ended January 31,
	2012		2011
Service cost	$	97	$	76
Interest cost		303		323
Amortization of prior service obligation		184		173
Amortization of unrecognized losses		17
Total costs	$	601	$	572
Benefits paid	$	115	$	34

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Commitments and Contingencies (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2012	Oct. 31, 2011
Company's purchase commitments
Aggregate purchase commitments unrelated parties	$ 539,636	$ 551,905
Unconsolidated entities that the Company has investments in	124,387	12,471
Total	664,023	564,376
Deposits against aggregate purchase commitments	32,199	37,987
Credits to be received from amounts previously contributed to unconsolidated entities	75,600	0
Additional cash required to acquire land	$ 556,224	$ 526,389

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Fair Value Disclosures (Details 1) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2012	Oct. 31, 2011
Aggregate unpaid principal and fair value of mortgage loans held for sale
Aggregate unpaid principal balance	$ 36,532	$ 62,765
Fair Value	36,911	63,175
Excess	$ 379	$ 410

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Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Reconciliation of Company's effective tax rate from federal statutory rate
Federal tax (benefit) provision at statutory rate	$ (2,243)	$ (5,966)
State taxes, net of federal benefit	(271)	(554)
Reversal of state tax provisions- finalization of audits		(2,340)
Increase in unrecognized tax benefits	1,500
Reversal of accrual for uncertain tax positions	(5,279)	(17,954)
Increase in deferred tax assets-net	(525)
Valuation allowance - recognized	4,089	7,027
Valuation allowance - reversed	(2,843)	(1,260)
Accrued interest on anticipated tax assessments	1,950	813
Other		(230)
Income tax benefit	$ (3,622)	$ (20,464)
Federal tax (benefit) provision at statutory rate, percentage	(35.00%)	(35.00%)
State taxes net of federal benefit, percentage	(4.20%)	(3.30%)
Reversal of state tax provisions- finalization of audits, percentage		(13.70%)
Increase in unrecognized tax benefits, percentage	23.40%
Reversal of accrual for uncertain tax positions, percentage	(82.40%)	(105.30%)
Increase in deferred tax assets-net, percentage	(8.20%)
Valuation allowance - recognized, percentage	63.80%	41.20%
Valuation allowance - reversed, percentage	(44.30%)	(7.40%)
Accrued interest on anticipated tax assessments, percentage	30.40%	4.80%
Other, percentage		(1.30%)
Tax provision (benefit), percentage	(56.50%)	(120.00%)

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Fair Value Disclosures (Details 4) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2012	Oct. 31, 2011
Carrying value and estimated fair value of non performing loan portfolio
Carrying amount of non performing loan portfolio	$ 90,334	$ 63,234
Estimated fair value of non performing loan portfolio	$ 91,667	$ 64,539

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Supplemental Guarantor Information (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Supplemental Condensed Consolidating Statement of Operations
Revenues	$ 321,955	$ 334,116
Cost of revenues	271,608	281,965
Selling, general and administrative	69,637	61,251
Interest expense	0	1,112
Total	341,245	344,328
Loss from operations	(19,290)	(10,212)
Other:
Income (loss) from unconsolidated entities	6,687	(11,002)
Interest and other	6,195	4,167
Loss from subsidiaries	0
Loss before income tax benefit	(6,408)	(17,047)
Income tax benefit	(3,622)	(20,464)
Net (loss) income	(2,786)	3,417
Toll Brothers Inc. [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenues	0	0
Cost of revenues	0	0
Selling, general and administrative	13	28
Total	13	28
Loss from operations	(13)	(28)
Other:
Income (loss) from unconsolidated entities	0
Interest and other	7
Loss from subsidiaries	(6,402)	(17,019)
Loss before income tax benefit	(6,408)	(17,047)
Income tax benefit	(3,622)	(20,464)
Net (loss) income	(2,786)	3,417
Subsidiary Issuer [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenues	0	0
Cost of revenues	0	0
Selling, general and administrative	478	341
Interest expense	25,286	25,845
Total	25,764	26,186
Loss from operations	(25,764)	(26,186)
Other:
Income (loss) from unconsolidated entities	0
Interest and other	25,764	26,186
Loss from subsidiaries	0
Loss before income tax benefit	0
Income tax benefit	0
Net (loss) income	0	0
Guarantor Subsidiaries [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenues	327,692	325,055
Cost of revenues	271,277	269,275
Selling, general and administrative	73,256	63,988
Interest expense	0	1,112
Total	344,533	334,375
Loss from operations	(16,841)	(9,320)
Other:
Income (loss) from unconsolidated entities	5,229	6,521
Interest and other	5,212	(14,220)
Loss from subsidiaries	0
Loss before income tax benefit	(6,400)	(17,019)
Income tax benefit	(3,618)	(22,359)
Net (loss) income	(2,782)	5,340
Non-Guarantor Subsidiaries [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenues	12,386	25,150
Cost of revenues	2,281	15,947
Selling, general and administrative	9,550	8,528
Interest expense	0
Total	11,831	24,475
Loss from operations	555	675
Other:
Income (loss) from unconsolidated entities	1,458	(17,523)
Interest and other	233	(1,538)
Loss from subsidiaries	0
Loss before income tax benefit	2,246	(18,386)
Income tax benefit	1,269	(22,058)
Net (loss) income	977	3,672
Eliminations [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenues	(18,123)	(16,089)
Cost of revenues	(1,950)	(3,257)
Selling, general and administrative	(13,660)	(11,634)
Interest expense	(25,286)	(25,845)
Total	(40,896)	(40,736)
Loss from operations	22,773	24,647
Other:
Income (loss) from unconsolidated entities	0
Interest and other	(25,021)	(6,261)
Loss from subsidiaries	6,402	17,019
Loss before income tax benefit	4,154	35,405
Income tax benefit	2,349	44,417
Net (loss) income	$ 1,805	$ (9,012)

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Commitments and Contingencies (Details Textual) (USD $)	Jan. 31, 2012 Homes
Commitments and Contingencies (Additional Textual) [Abstract]
Outstanding letter of credit	$ 83,500,000
Commitments and Contingencies (Textual) [Abstract]
Outstanding surety bonds	367,100,000
Amount of work remains on improvements in the Company's various communities	206,600,000
Additional outstanding surety bonds	65,700,000
Outstanding letter of credit collateralized by restricted cash	13,300,000
Number of homes to be delivered	1,784
Aggregate sales value of outstanding homes to be delivered	1,100,000,000
New credit facility [Member]
Commitments and Contingencies (Additional Textual) [Abstract]
Outstanding letter of credit	$ 70,200,000

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Supplemental Guarantor Information (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Cash flow used in operating activities:
Net (loss) income	$ (2,786)	$ 3,417
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	5,229	4,387
Stock-based compensation	5,626	5,373
Impairment of investment in unconsolidated entities	0	20,000
Income from unconsolidated entities	(6,687)	(8,998)
Distributions of earnings from unconsolidated entities	872	2,793
Income from non-performing loan portfolios and foreclosed real estate	(4,138)
Deferred tax benefit	(1,246)	(6,589)
Deferred tax valuation allowances	1,246	6,589
Inventory impairments and write-offs	8,120	5,126
Change in fair value of mortgage loans receivable and derivative instruments	346	714
Gain on marketable securities	(39)
Changes in operating assets and liabilities
Increase in Inventory	(108,468)	(120,875)
Origination of mortgage loans	(120,662)	(182,659)
Sale of mortgage loans	146,895	233,891
(Increase) decrease in restricted cash	(28,481)	8,498
Decrease in receivables, prepaid expenses and other assets	11,929	7,937
Increase in customer deposits	3,230	2,277
(Decrease) increase in accounts payable and accrued expenses	(67,127)	(38,987)
Decrease in income taxes payable	(5,790)	(20,082)
Net cash used in operating activities	(161,931)	(77,188)
Cash flow from investing activities:
Purchase of property and equipment - net	(3,540)	(4,281)
Purchase of marketable securities	0	(119,238)
Sale and redemption of marketable securities	88,217	102,500
Investment in and advances to unconsolidated entities	(71,784)	0
Return of investments in unconsolidated entities	15,333	6,305
Investment in non-performing loan portfolios and foreclosed real estate	(26,410)
Return of investments in non-performing loan portfolios and foreclosed real estate	3,702
Acquisition of a business	(144,746)	0
Net cash used in investing activities	(139,228)	(14,714)
Cash flow from financing activities:
Proceeds from loans payable	199,139	266,035
Principal payments of loans payable	(237,896)	(329,754)
Proceeds from stock-based benefit plans	9,334	3,323
Purchase of treasury stock	(64)	(163)
Net cash used in financing activities	(29,487)	(60,559)
Net decrease in cash and cash equivalents	(330,646)	(152,461)
Cash and cash equivalents, beginning of period	906,340	1,039,060
Cash and cash equivalents, end of period	575,694	886,599
Toll Brothers Inc. [Member]
Cash flow used in operating activities:
Net (loss) income	(2,786)	3,417
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	0	28
Stock-based compensation	5,626	5,373
Deferred tax benefit	(1,246)	(6,589)
Deferred tax valuation allowances	1,246	6,589
Changes in operating assets and liabilities
(Increase) decrease in restricted cash	(28,307)
Decrease in receivables, prepaid expenses and other assets	22,096	8,712
(Decrease) increase in accounts payable and accrued expenses	(109)	(608)
Decrease in income taxes payable	(5,790)	(20,082)
Net cash used in operating activities	(9,270)	(3,160)
Cash flow from financing activities:
Proceeds from stock-based benefit plans	9,334	3,323
Purchase of treasury stock	(64)	(163)
Net cash used in financing activities	9,270	3,160
Cash and cash equivalents, beginning of period	0	0
Cash and cash equivalents, end of period	0	0
Subsidiary Issuer [Member]
Cash flow used in operating activities:
Net (loss) income	0	0
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	794	807
Changes in operating assets and liabilities
Decrease in receivables, prepaid expenses and other assets	(4,793)	(3,709)
(Decrease) increase in accounts payable and accrued expenses	3,999	2,902
Cash flow from financing activities:
Cash and cash equivalents, beginning of period	0	0
Cash and cash equivalents, end of period	0	0
Guarantor Subsidiaries [Member]
Cash flow used in operating activities:
Net (loss) income	(2,782)	5,340
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	4,419	3,239
Income from unconsolidated entities	(7,729)	(5,922)
Distributions of earnings from unconsolidated entities	872	593
Inventory impairments and write-offs	8,120	5,126
Gain on marketable securities	39
Changes in operating assets and liabilities
Increase in Inventory	(100,509)	(39,214)
(Increase) decrease in restricted cash	650	8,498
Decrease in receivables, prepaid expenses and other assets	(177,441)	(69,228)
Increase in customer deposits	9,291	(1,183)
(Decrease) increase in accounts payable and accrued expenses	(11,553)	(41,317)
Net cash used in operating activities	(276,701)	(134,068)
Cash flow from investing activities:
Purchase of property and equipment - net	(2,711)	(1,189)
Purchase of marketable securities	0	(119,238)
Sale and redemption of marketable securities	88,217	102,500
Investment in and advances to unconsolidated entities	(256)	0
Return of investments in unconsolidated entities	15,333	6,305
Acquisition of a business	(144,746)
Net cash used in investing activities	(44,163)	(11,622)
Cash flow from financing activities:
Principal payments of loans payable	(12,520)	(6,794)
Net cash used in financing activities	(12,520)	(6,794)
Net decrease in cash and cash equivalents	(333,384)	(152,484)
Cash and cash equivalents, beginning of period	775,300	930,387
Cash and cash equivalents, end of period	441,916	777,903
Non-Guarantor Subsidiaries [Member]
Cash flow used in operating activities:
Net (loss) income	977	3,672
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	16	313
Impairment of investment in unconsolidated entities	0	20,000
Income from unconsolidated entities	1,042	(3,076)
Distributions of earnings from unconsolidated entities	0	2,200
Income from non-performing loan portfolios and foreclosed real estate	(4,138)
Change in fair value of mortgage loans receivable and derivative instruments	346	714
Changes in operating assets and liabilities
Increase in Inventory	(7,959)	(81,661)
Origination of mortgage loans	(120,662)	(182,659)
Sale of mortgage loans	146,895	233,891
(Increase) decrease in restricted cash	(824)
Decrease in receivables, prepaid expenses and other assets	174,480	63,393
Increase in customer deposits	(6,061)	3,460
(Decrease) increase in accounts payable and accrued expenses	(60,072)	(207)
Net cash used in operating activities	124,040	60,040
Cash flow from investing activities:
Purchase of property and equipment - net	(829)	(3,092)
Investment in and advances to unconsolidated entities	(71,528)	0
Investment in non-performing loan portfolios and foreclosed real estate	(26,410)
Return of investments in non-performing loan portfolios and foreclosed real estate	3,702
Net cash used in investing activities	(95,065)	(3,092)
Cash flow from financing activities:
Proceeds from loans payable	199,139	266,035
Principal payments of loans payable	(225,376)	(322,960)
Net cash used in financing activities	(26,237)	(56,925)
Net decrease in cash and cash equivalents	2,738	23
Cash and cash equivalents, beginning of period	131,040	108,673
Cash and cash equivalents, end of period	133,778	108,696
Eliminations [Member]
Cash flow used in operating activities:
Net (loss) income	1,805	(9,012)
Changes in operating assets and liabilities
Decrease in receivables, prepaid expenses and other assets	(2,413)	8,769
(Decrease) increase in accounts payable and accrued expenses	608	243
Cash flow from financing activities:
Cash and cash equivalents, beginning of period	0	0
Cash and cash equivalents, end of period	$ 0	$ 0

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Fair Value Disclosures (Details 5) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Oct. 31, 2011
Book value and estimated fair value of the Company's debt
Loans payable (a)	$ 93,279	$ 106,556
Senior notes	1,491,442	1,490,972
Mortgage company warehouse loan (c)	31,864	57,409
Fair Value Disclosures (Textual) [Abstract]
Marketable securities debt maturity date range low	1 month
Marketable securities debt maturity date range high	9 months
Book value [Member]
Book value and estimated fair value of the Company's debt
Loans payable (a)	93,279	106,556
Senior notes	1,499,371	1,499,371
Mortgage company warehouse loan (c)	31,864	57,409
Total debt	1,624,514	1,663,336
Estimate fair value [Member]
Book value and estimated fair value of the Company's debt
Loans payable (a)	88,137	98,950
Senior notes	1,634,469	1,614,010
Mortgage company warehouse loan (c)	31,864	57,409
Total debt	$ 1,754,470	$ 1,770,369

XML

(Loss) Income Per Share Information (Details) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
(Loss) Income Per Share Information [Abstract]
Basic weighted-average shares	166,311	166,677
Common stock equivalents		1,444
Diluted weighted-average shares	166,311	168,121
Common stock equivalents excluded from diluted weighted-average shares due to anti-dilutive effect	796
Weighted average number of anti-dilutive options	5,906	8,383
Shares issued under stock incentive and employee stock purchase plans	942	414

XML

Supplemental Guarantor Information

3 Months Ended

Jan. 31, 2012

Supplemental Guarantor Information [Abstract]

Supplemental Guarantor Information

20. Supplemental Guarantor Information

A 100% owned subsidiary of the Company, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), issued $300 million of 6.875% Senior Notes due 2012 on November 22, 2002; $250 million of 5.95% Senior Notes due 2013 on September 3, 2003; $300 million of 4.95% Senior Notes due 2014 on March 16, 2004; $300 million of 5.15% Senior Notes due 2015 on June 2, 2005; $400 million of 8.91% Senior Notes due 2017 on April 13, 2009; and $250 million of 6.75% Senior Notes due 2019 on September 22, 2009. Through January 31, 2012, the Subsidiary Issuer has redeemed $160.2 million of its 6.875% Senior Notes due 2012, $108.4 million of its 5.95% Senior Notes due 2013 and $32.0 million of its 4.95% Senior Notes due 2014. The obligations of the Subsidiary Issuer to pay principal, premiums, if any, and interest is guaranteed jointly and severally on a senior basis by the Company and substantially all of the Company’s 100% owned home building subsidiaries (the “Guarantor Subsidiaries”). The guarantees are full and unconditional. The Company’s non-home building subsidiaries and several of its home building subsidiaries (the “Non-Guarantor Subsidiaries”) do not guarantee the debt. 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. Prior to the above described senior debt issuances, the Subsidiary Issuer did not have any operations.

Supplemental consolidating financial information of Toll Brothers, Inc., the Subsidiary Issuer, the Guarantor Subsidiaries, the Non-Guarantor 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 January 31, 2012

	Toll								Non-
	Brothers,			Subsidiary		Guarantor			Guarantor
	Inc.			Issuer		Subsidiaries			Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents							441,916			133,778						575,694
Marketable securities							143,729									143,729
Restricted cash		28,307					18,434			1,500						48,241
Inventory							3,496,927			158,173						3,655,100
Property, construction and office equipment, net							98,408			3,091						101,499
Receivables, prepaid expenses and other assets					6,444		75,622			17,827			(1,702	)		98,191
Mortgage loans receivable										36,911						36,911
Customer deposits held in escrow							23,309			1,780						25,089
Investments in and advances to unconsolidated entities							77,473			116,153						193,626
Investments in non-performing loan portfolios and foreclosed real estate										96,822						96,822
Investments in and advances to consolidated entities		2,671,770			1,513,343		(943,024	)		(236,201	)		(3,005,888	)		—
		2,700,077			1,519,787		3,432,794			329,834			(3,007,590	)		4,974,902
LIABILITIES AND EQUITY
Liabilities:
Loans payable							92,079			1,200						93,279
Senior notes					1,491,442											1,491,442
Mortgage company warehouse loan										31,864						31,864
Customer deposits							93,356			3,978						97,334
Accounts payable							103,491			1,820						105,311
Accrued expenses					28,345		306,994			117,857			(1,782	)		451,414
Income taxes payable		102,276								(2,000	)					100,276
Total liabilities		102,276			1,519,787		595,920			154,719			(1,782	)		2,370,920
Equity:
Stockholders’ equity:
Common stock		1,687					3,054			2,003			(5,057	)		1,687
Additional paid-in capital		399,743					1,366			2,734			(4,100	)		399,743
Retained earnings		2,231,465					2,836,017			164,197			(3,000,214	)		2,231,465
Treasury stock, at cost		(31,531	)													(31,531	)
Accumulated other comprehensive loss		(3,563	)				(3,563	)					3,563			(3,563	)
Total stockholders’ equity		2,597,801			—		2,836,874			168,934			(3,005,808	)		2,597,801
Noncontrolling interest										6,181						6,181
Total equity		2,597,801			—		2,836,874			175,115			(3,005,808	)		2,603,982
		2,700,077			1,519,787		3,432,794			329,834			(3,007,590	)		4,974,902

Condensed Consolidating Balance Sheet at October 31, 2011

	Toll								Non-
	Brothers,			Subsidiary		Guarantor			Guarantor
	Inc.			Issuer		Subsidiaries			Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents							775,300			131,040						906,340
Marketable securities							233,572									233,572
Restricted cash							19,084			676						19,760
Inventory							2,911,211			505,512						3,416,723
Property, construction and office equipment, net							77,001			22,711						99,712
Receivables, prepaid expenses and other assets					6,768		74,980			26,067			(2,239	)		105,576
Mortgage loans receivable										63,175						63,175
Customer deposits held in escrow							10,682			4,177						14,859
Investments in and advances to unconsolidated entities							86,481			39,874						126,355
Investments in non-performing loan portfolios and foreclosed real estate										69,174						69,174
Investments in and advances to consolidated entities		2,694,419			1,508,550		(727,258	)		(467,395	)		(3,008,316	)		—
		2,694,419			1,515,318		3,461,053			395,011			(3,010,555	)		5,055,246
LIABILITIES AND EQUITY
Liabilities:
Loans payable							61,994			44,562						106,556
Senior notes					1,490,972											1,490,972
Mortgage company warehouse loan										57,409						57,409
Customer deposits							71,388			12,436						83,824
Accounts payable							96,645			172						96,817
Accrued expenses					24,346		320,021			178,965			(2,281	)		521,051
Income taxes payable		108,066								(2,000	)					106,066
Total liabilities		108,066			1,515,318		550,048			291,544			(2,281	)		2,462,695
Equity:
Stockholders’ equity:
Common stock		1,687					3,054			2,003			(5,057	)		1,687
Additional paid-in capital		400,382					1,366			2,734			(4,100	)		400,382
Retained earnings		2,234,251					2,909,487			92,532			(3,002,019	)		2,234,251
Treasury stock, at cost		(47,065	)													(47,065	)
Accumulated other comprehensive loss		(2,902	)				(2,902	)					2,902			(2,902	)
Total stockholders’ equity		2,586,353			—		2,911,005			97,269			(3,008,274	)		2,586,353
Noncontrolling interest										6,198						6,198
Total equity		2,586,353			—		2,911,005			103,467			(3,008,274	)		2,592,551
		2,694,419			1,515,318		3,461,053			395,011			(3,010,555	)		5,055,246

Condensed Consolidating Statement of Operations for the three months ended January 31, 2012 ($ in thousands):

	Toll									Non-
	Brothers,			Subsidiary			Guarantor			Guarantor
	Inc.			Issuer			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Revenues								327,692			12,386		(18,123	)		321,955
Cost of revenues								271,277			2,281		(1,950	)		271,608
Selling, general and administrative		13			478			73,256			9,550		(13,660	)		69,637
Interest expense					25,286								(25,286	)		—
		13			25,764			344,533			11,831		(40,896	)		341,245
Loss from operations		(13	)		(25,764	)		(16,841	)		555		22,773			(19,290	)
Other
Income from unconsolidated entities								5,229			1,458					6,687
Interest and other		7			25,764			5,212			233		(25,021	)		6,195
Loss from subsidiaries		(6,402	)										6,402			—
Loss before income tax benefit		(6,408	)		—			(6,400	)		2,246		4,154			(6,408	)
Income tax (benefit) provision		(3,622	)					(3,618	)		1,269		2,349			(3,622	)
Net (loss) income		(2,786	)		—			(2,782	)		977		1,805			(2,786	)

Condensed Consolidating Statement of Operations for the three months ended January 31, 2011 ($ in thousands):

	Toll									Non-
	Brothers,			Subsidiary			Guarantor			Guarantor
	Inc.			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues								325,055			25,150			(16,089	)		334,116
Cost of revenues								269,275			15,947			(3,257	)		281,965
Selling, general and administrative		28			341			63,988			8,528			(11,634	)		61,251
Interest expense					25,845			1,112						(25,845	)		1,112
		28			26,186			334,375			24,475			(40,736	)		344,328
Loss (income) from operations		(28	)		(26,186	)		(9,320	)		675			24,647			(10,212	)
Other
(Loss) income from unconsolidated entities								6,521			(17,523	)					(11,002	)
Interest and other					26,186			(14,220	)		(1,538	)		(6,261	)		4,167
Loss from subsidiaries		(17,019	)											17,019			—
Loss before income tax benefit		(17,047	)		—			(17,019	)		(18,386	)		35,405			(17,047	)
Income tax benefit		(20,464	)					(22,359	)		(22,058	)		44,417			(20,464	)
Net income		3,417			—			5,340			3,672			(9,012	)		3,417

Condensed Consolidating Statement of Cash Flows for the three months ended January 31, 2012 ($ in thousands):

		000000			000000			000000			000000			000000			000000
	Toll									Non-
	Brothers,			Subsidiary			Guarantor			Guarantor
	Inc.			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash flow used in operating activities:
Net (loss) income		(2,786	)					(2,782	)		977			1,805			(2,786	)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization					794			4,419			16						5,229
Stock-based compensation		5,626															5,626
Income (loss) from unconsolidated entities								(7,729	)		1,042						(6,687	)
Distributions of earnings from unconsolidated entities								872									872
Income from non-performing loan portfolios and foreclosed real estate											(4,138	)					(4,138	)
Deferred tax benefit		(1,246	)														(1,246	)
Deferred tax valuation allowances		1,246															1,246
Inventory impairments and write-offs								8,120									8,120
Change in fair value of mortgage loans receivable and derivative instruments											346						346
Gain on marketable securities								(39	)								(39	)
Changes in operating assets and liabilities
Increase in inventory								(100,509	)		(7,959	)					(108,468	)
Origination of mortgage loans											(120,662	)					(120,662	)
Sale of mortgage loans											146,895						146,895
(Increase) decrease in restricted cash		(28,307	)					650			(824	)					(28,481	)
Decrease (increase) in receivables, prepaid expenses and other assets		22,096			(4,793	)		(177,441	)		174,480			(2,413	)		11,929
Increase (decrease) in customer deposits								9,291			(6,061	)					3,230
(Decrease) increase in accounts payable and accrued expenses		(109	)		3,999			(11,553	)		(60,072	)		608			(67,127	)
Decrease in income taxes payable		(5,790	)														(5,790	)
Net cash (used in) provided by operating activities		(9,270	)		—			(276,701	)		124,040			—			(161,931	)
Cash flow used in investing activities:
Purchase of property and equipment—net								(2,711	)		(829	)					(3,540	)
Sale and redemption of marketable securities								88,217									88,217
Investment in and advances to unconsolidated entities								(256	)		(71,528	)					(71,784	)
Return of investments in unconsolidated entities								15,333									15,333
Investment in non-performing loan portfolios and foreclosed real estate											(26,410	)					(26,410	)
Return of investments in non-performing loan portfolios and foreclosed real estate											3,702						3,702
Acquisition of a business								(144,746	)								(144,746	)
Net cash used in investing activities								(44,163	)		(95,065	)					(139,228	)
Cash flow (used in) provided by financing activities:
Proceeds from loans payable											199,139						199,139
Principal payments of loans payable								(12,520	)		(225,376	)					(237,896	)
Proceeds from stock-based benefit plans		9,334															9,334
Purchase of treasury stock		(64	)														(64	)
Net cash (used in) provided by financing activities		9,270						(12,520	)		(26,237	)					(29,487	)
Net decrease (increase) in cash and cash equivalents		—			—			(333,384	)		2,738			—			(330,646	)
Cash and cash equivalents, beginning of year								775,300			131,040						906,340
Cash and cash equivalents, end of year		—			—			441,916			133,778			—			575,694

Condensed Consolidating Statement of Cash Flows for the three months ended January 31, 2011 ($ in thousands):

	Toll									Non-
	Brothers,			Subsidiary			Guarantor			Guarantor
	Inc.			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash flow from operating activities:
Net income		3,417						5,340			3,672			(9,012	)		3,417
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		28			807			3,239			313						4,387
Stock-based compensation		5,373															5,373
Impairments of investments in unconsolidated entities											20,000						20,000
Income from unconsolidated entities								(5,922	)		(3,076	)					(8,998	)
Distributions of earnings from unconsolidated entities								593			2,200						2,793
Inventory impairments and write-offs								5,126									5,126
Deferred tax benefit		(6,589	)														(6,589	)
Deferred tax valuation allowance		6,589															6,589
Change in fair value of mortgage loans receivable and derivative instruments											714						714
Changes in operating assets and liabilities
Decrease in inventory								(39,214	)		(81,661	)					(120,875	)
Origination of mortgage loans											(182,659	)					(182,659	)
Sale of mortgage loans											233,891						233,891
Decrease in restricted cash								8,498									8,498
Decrease (increase) in receivables, prepaid expenses and other assets		8,712			(3,709	)		(69,228	)		63,393			8,769			7,937
Increase (decrease) in customer deposits								(1,183	)		3,460						2,277
(Decrease) increase in accounts payable and accrued expenses		(608	)		2,902			(41,317	)		(207	)		243			(38,987	)
Decrease in income taxes payable		(20,082	)														(20,082	)
Net cash (used in) provided by operating activities		(3,160	)		—			(134,068	)		60,040			—			(77,188	)
Cash flow from investing activities:
Purchase of property and equipment								(1,189	)		(3,092	)					(4,281	)
Purchase of marketable securities								(119,238	)								(119,238	)
Sale of marketable securities								102,500									102,500
Return of investments from unconsolidated entities								6,305									6,305
Net cash used in investing activities								(11,622	)		(3,092	)					(14,714	)
Cash flow from financing activities:
Proceeds from loans payable											266,035						266,035
Principal payments of loans payable								(6,794	)		(322,960	)					(329,754	)
Proceeds from stock-based benefit plans		3,323															3,323
Purchase of treasury stock		(163	)														(163	)
Net cash (used in) provided by financing activities		3,160						(6,794	)		(56,925	)					(60,559	)
Net (decrease) increase in cash and cash equivalents		—			—			(152,484	)		23			—			(152,461	)
Cash and cash equivalents, beginning of period		—			—			930,387			108,673			—			1,039,060
Cash and cash equivalents, end of period		—			—			777,903			108,696			—			886,599

XML

Investments in and Advances to Unconsolidated Entities (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Condensed Statements of Operations:
Revenues	$ 74,623	$ 110,251
Cost of revenues	63,975	83,375
Other expenses	10,586	12,439
Loss/ Gain on disposition of loans and REO	44	(11,374)
Total expenses - net	74,605	84,440
Income (loss) from operations	18	25,811
Other income	2,795	2,503
Net income (loss) before noncontrolling interest	2,813	28,314
Less: Net income attributable to noncontrolling interest	(3,283)	(6,383)
Net income (loss)	6,096	21,931
Company's equity in (losses) earnings of unconsolidated entities (3)	6,687	(11,002)
Development Joint Venture [Member]
Condensed Statements of Operations:
Revenues	33,584	1,085
Cost of revenues	31,771	1,159
Other expenses	225	157
Total expenses - net	31,996	1,316
Income (loss) from operations	1,588	(231)
Other income	2,653	2,379
Net income (loss) before noncontrolling interest	4,241	2,148
Net income (loss)	4,241	2,148
Company's equity in (losses) earnings of unconsolidated entities (3)	1,996	(20,000)
Home Building Joint Ventures [Member]
Condensed Statements of Operations:
Revenues	23,430	88,014
Cost of revenues	17,794	69,169
Other expenses	945	3,009
Total expenses - net	18,739	72,178
Income (loss) from operations	4,691	15,836
Other income	5	36
Net income (loss) before noncontrolling interest	4,696	15,872
Net income (loss)	4,696	15,872
Company's equity in (losses) earnings of unconsolidated entities (3)	4,520	7,934
Toll Brothers Realty Trust I and II [Member]
Condensed Statements of Operations:
Revenues	9,476	9,150
Cost of revenues	3,343	3,489
Other expenses	6,785	6,002
Total expenses - net	10,128	9,491
Income (loss) from operations	(652)	(341)
Net income (loss) before noncontrolling interest	(652)	(341)
Net income (loss)	(652)	(341)
Company's equity in (losses) earnings of unconsolidated entities (3)	623	464
Structured Asset Joint Venture [Member]
Condensed Statements of Operations:
Revenues	8,133	12,002
Cost of revenues	11,067	9,558
Other expenses	2,631	3,271
Loss/ Gain on disposition of loans and REO	44	(11,374)
Total expenses - net	13,742	1,455
Income (loss) from operations	(5,609)	10,547
Other income	137	88
Net income (loss) before noncontrolling interest	(5,472)	10,635
Less: Net income attributable to noncontrolling interest	(3,283)	(6,383)
Net income (loss)	(2,189)	4,252
Company's equity in (losses) earnings of unconsolidated entities (3)	$ (452)	$ 600

XML

Supplemental Guarantor Information (Tables)

3 Months Ended

Jan. 31, 2012

Supplemental Guarantor Information [Abstract]

Supplemental Consolidated Financial Information

	Toll								Non-
	Brothers,			Subsidiary		Guarantor			Guarantor
	Inc.			Issuer		Subsidiaries			Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents							441,916			133,778						575,694
Marketable securities							143,729									143,729
Restricted cash		28,307					18,434			1,500						48,241
Inventory							3,496,927			158,173						3,655,100
Property, construction and office equipment, net							98,408			3,091						101,499
Receivables, prepaid expenses and other assets					6,444		75,622			17,827			(1,702	)		98,191
Mortgage loans receivable										36,911						36,911
Customer deposits held in escrow							23,309			1,780						25,089
Investments in and advances to unconsolidated entities							77,473			116,153						193,626
Investments in non-performing loan portfolios and foreclosed real estate										96,822						96,822
Investments in and advances to consolidated entities		2,671,770			1,513,343		(943,024	)		(236,201	)		(3,005,888	)		—
		2,700,077			1,519,787		3,432,794			329,834			(3,007,590	)		4,974,902
LIABILITIES AND EQUITY
Liabilities:
Loans payable							92,079			1,200						93,279
Senior notes					1,491,442											1,491,442
Mortgage company warehouse loan										31,864						31,864
Customer deposits							93,356			3,978						97,334
Accounts payable							103,491			1,820						105,311
Accrued expenses					28,345		306,994			117,857			(1,782	)		451,414
Income taxes payable		102,276								(2,000	)					100,276
Total liabilities		102,276			1,519,787		595,920			154,719			(1,782	)		2,370,920
Equity:
Stockholders’ equity:
Common stock		1,687					3,054			2,003			(5,057	)		1,687
Additional paid-in capital		399,743					1,366			2,734			(4,100	)		399,743
Retained earnings		2,231,465					2,836,017			164,197			(3,000,214	)		2,231,465
Treasury stock, at cost		(31,531	)													(31,531	)
Accumulated other comprehensive loss		(3,563	)				(3,563	)					3,563			(3,563	)
Total stockholders’ equity		2,597,801			—		2,836,874			168,934			(3,005,808	)		2,597,801
Noncontrolling interest										6,181						6,181
Total equity		2,597,801			—		2,836,874			175,115			(3,005,808	)		2,603,982
		2,700,077			1,519,787		3,432,794			329,834			(3,007,590	)		4,974,902

	Toll								Non-
	Brothers,			Subsidiary		Guarantor			Guarantor
	Inc.			Issuer		Subsidiaries			Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents							775,300			131,040						906,340
Marketable securities							233,572									233,572
Restricted cash							19,084			676						19,760
Inventory							2,911,211			505,512						3,416,723
Property, construction and office equipment, net							77,001			22,711						99,712
Receivables, prepaid expenses and other assets					6,768		74,980			26,067			(2,239	)		105,576
Mortgage loans receivable										63,175						63,175
Customer deposits held in escrow							10,682			4,177						14,859
Investments in and advances to unconsolidated entities							86,481			39,874						126,355
Investments in non-performing loan portfolios and foreclosed real estate										69,174						69,174
Investments in and advances to consolidated entities		2,694,419			1,508,550		(727,258	)		(467,395	)		(3,008,316	)		—
		2,694,419			1,515,318		3,461,053			395,011			(3,010,555	)		5,055,246
LIABILITIES AND EQUITY
Liabilities:
Loans payable							61,994			44,562						106,556
Senior notes					1,490,972											1,490,972
Mortgage company warehouse loan										57,409						57,409
Customer deposits							71,388			12,436						83,824
Accounts payable							96,645			172						96,817
Accrued expenses					24,346		320,021			178,965			(2,281	)		521,051
Income taxes payable		108,066								(2,000	)					106,066
Total liabilities		108,066			1,515,318		550,048			291,544			(2,281	)		2,462,695
Equity:
Stockholders’ equity:
Common stock		1,687					3,054			2,003			(5,057	)		1,687
Additional paid-in capital		400,382					1,366			2,734			(4,100	)		400,382
Retained earnings		2,234,251					2,909,487			92,532			(3,002,019	)		2,234,251
Treasury stock, at cost		(47,065	)													(47,065	)
Accumulated other comprehensive loss		(2,902	)				(2,902	)					2,902			(2,902	)
Total stockholders’ equity		2,586,353			—		2,911,005			97,269			(3,008,274	)		2,586,353
Noncontrolling interest										6,198						6,198
Total equity		2,586,353			—		2,911,005			103,467			(3,008,274	)		2,592,551
		2,694,419			1,515,318		3,461,053			395,011			(3,010,555	)		5,055,246

	Toll									Non-
	Brothers,			Subsidiary			Guarantor			Guarantor
	Inc.			Issuer			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Revenues								327,692			12,386		(18,123	)		321,955
Cost of revenues								271,277			2,281		(1,950	)		271,608
Selling, general and administrative		13			478			73,256			9,550		(13,660	)		69,637
Interest expense					25,286								(25,286	)		—
		13			25,764			344,533			11,831		(40,896	)		341,245
Loss from operations		(13	)		(25,764	)		(16,841	)		555		22,773			(19,290	)
Other
Income from unconsolidated entities								5,229			1,458					6,687
Interest and other		7			25,764			5,212			233		(25,021	)		6,195
Loss from subsidiaries		(6,402	)										6,402			—
Loss before income tax benefit		(6,408	)		—			(6,400	)		2,246		4,154			(6,408	)
Income tax (benefit) provision		(3,622	)					(3,618	)		1,269		2,349			(3,622	)
Net (loss) income		(2,786	)		—			(2,782	)		977		1,805			(2,786	)

	Toll									Non-
	Brothers,			Subsidiary			Guarantor			Guarantor
	Inc.			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues								325,055			25,150			(16,089	)		334,116
Cost of revenues								269,275			15,947			(3,257	)		281,965
Selling, general and administrative		28			341			63,988			8,528			(11,634	)		61,251
Interest expense					25,845			1,112						(25,845	)		1,112
		28			26,186			334,375			24,475			(40,736	)		344,328
Loss (income) from operations		(28	)		(26,186	)		(9,320	)		675			24,647			(10,212	)
Other
(Loss) income from unconsolidated entities								6,521			(17,523	)					(11,002	)
Interest and other					26,186			(14,220	)		(1,538	)		(6,261	)		4,167
Loss from subsidiaries		(17,019	)											17,019			—
Loss before income tax benefit		(17,047	)		—			(17,019	)		(18,386	)		35,405			(17,047	)
Income tax benefit		(20,464	)					(22,359	)		(22,058	)		44,417			(20,464	)
Net income		3,417			—			5,340			3,672			(9,012	)		3,417

		000000			000000			000000			000000			000000			000000
	Toll									Non-
	Brothers,			Subsidiary			Guarantor			Guarantor
	Inc.			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash flow used in operating activities:
Net (loss) income		(2,786	)					(2,782	)		977			1,805			(2,786	)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization					794			4,419			16						5,229
Stock-based compensation		5,626															5,626
Income (loss) from unconsolidated entities								(7,729	)		1,042						(6,687	)
Distributions of earnings from unconsolidated entities								872									872
Income from non-performing loan portfolios and foreclosed real estate											(4,138	)					(4,138	)
Deferred tax benefit		(1,246	)														(1,246	)
Deferred tax valuation allowances		1,246															1,246
Inventory impairments and write-offs								8,120									8,120
Change in fair value of mortgage loans receivable and derivative instruments											346						346
Gain on marketable securities								(39	)								(39	)
Changes in operating assets and liabilities
Increase in inventory								(100,509	)		(7,959	)					(108,468	)
Origination of mortgage loans											(120,662	)					(120,662	)
Sale of mortgage loans											146,895						146,895
(Increase) decrease in restricted cash		(28,307	)					650			(824	)					(28,481	)
Decrease (increase) in receivables, prepaid expenses and other assets		22,096			(4,793	)		(177,441	)		174,480			(2,413	)		11,929
Increase (decrease) in customer deposits								9,291			(6,061	)					3,230
(Decrease) increase in accounts payable and accrued expenses		(109	)		3,999			(11,553	)		(60,072	)		608			(67,127	)
Decrease in income taxes payable		(5,790	)														(5,790	)
Net cash (used in) provided by operating activities		(9,270	)		—			(276,701	)		124,040			—			(161,931	)
Cash flow used in investing activities:
Purchase of property and equipment—net								(2,711	)		(829	)					(3,540	)
Sale and redemption of marketable securities								88,217									88,217
Investment in and advances to unconsolidated entities								(256	)		(71,528	)					(71,784	)
Return of investments in unconsolidated entities								15,333									15,333
Investment in non-performing loan portfolios and foreclosed real estate											(26,410	)					(26,410	)
Return of investments in non-performing loan portfolios and foreclosed real estate											3,702						3,702
Acquisition of a business								(144,746	)								(144,746	)
Net cash used in investing activities								(44,163	)		(95,065	)					(139,228	)
Cash flow (used in) provided by financing activities:
Proceeds from loans payable											199,139						199,139
Principal payments of loans payable								(12,520	)		(225,376	)					(237,896	)
Proceeds from stock-based benefit plans		9,334															9,334
Purchase of treasury stock		(64	)														(64	)
Net cash (used in) provided by financing activities		9,270						(12,520	)		(26,237	)					(29,487	)
Net decrease (increase) in cash and cash equivalents		—			—			(333,384	)		2,738			—			(330,646	)
Cash and cash equivalents, beginning of year								775,300			131,040						906,340
Cash and cash equivalents, end of year		—			—			441,916			133,778			—			575,694

	Toll									Non-
	Brothers,			Subsidiary			Guarantor			Guarantor
	Inc.			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash flow from operating activities:
Net income		3,417						5,340			3,672			(9,012	)		3,417
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		28			807			3,239			313						4,387
Stock-based compensation		5,373															5,373
Impairments of investments in unconsolidated entities											20,000						20,000
Income from unconsolidated entities								(5,922	)		(3,076	)					(8,998	)
Distributions of earnings from unconsolidated entities								593			2,200						2,793
Inventory impairments and write-offs								5,126									5,126
Deferred tax benefit		(6,589	)														(6,589	)
Deferred tax valuation allowance		6,589															6,589
Change in fair value of mortgage loans receivable and derivative instruments											714						714
Changes in operating assets and liabilities
Decrease in inventory								(39,214	)		(81,661	)					(120,875	)
Origination of mortgage loans											(182,659	)					(182,659	)
Sale of mortgage loans											233,891						233,891
Decrease in restricted cash								8,498									8,498
Decrease (increase) in receivables, prepaid expenses and other assets		8,712			(3,709	)		(69,228	)		63,393			8,769			7,937
Increase (decrease) in customer deposits								(1,183	)		3,460						2,277
(Decrease) increase in accounts payable and accrued expenses		(608	)		2,902			(41,317	)		(207	)		243			(38,987	)
Decrease in income taxes payable		(20,082	)														(20,082	)
Net cash (used in) provided by operating activities		(3,160	)		—			(134,068	)		60,040			—			(77,188	)
Cash flow from investing activities:
Purchase of property and equipment								(1,189	)		(3,092	)					(4,281	)
Purchase of marketable securities								(119,238	)								(119,238	)
Sale of marketable securities								102,500									102,500
Return of investments from unconsolidated entities								6,305									6,305
Net cash used in investing activities								(11,622	)		(3,092	)					(14,714	)
Cash flow from financing activities:
Proceeds from loans payable											266,035						266,035
Principal payments of loans payable								(6,794	)		(322,960	)					(329,754	)
Proceeds from stock-based benefit plans		3,323															3,323
Purchase of treasury stock		(163	)														(163	)
Net cash (used in) provided by financing activities		3,160						(6,794	)		(56,925	)					(60,559	)
Net (decrease) increase in cash and cash equivalents		—			—			(152,484	)		23			—			(152,461	)
Cash and cash equivalents, beginning of period		—			—			930,387			108,673			—			1,039,060
Cash and cash equivalents, end of period		—			—			777,903			108,696			—			886,599

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Fair Value Disclosures (Details 3) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Fair value of inventory adjusted for impairment
Fair value of communities, net of impairment charges	$ 49,758	$ 56,105
Inventory impairments and write-offs	8,120	5,126
Land Owned for Future Communities and Operating Communities [Member]
Fair value of inventory adjusted for impairment
Inventory impairments and write-offs	$ 6,425	$ 5,475

XML

Fair Value Disclosures (Tables)

3 Months Ended

Jan. 31, 2012

Fair Value Disclosures [Abstract]

Summary of assets and (liabilities), measured at fair value on a recurring basis

	September 30,		September 30,			September 30,
		Fair value
Financial Instrument	Fair value hierarchy	January 31, 2012			October 31, 2011
Corporate Securities	Level 1	$	143,729		$	233,572
Residential Mortgage Loans Held for Sale	Level 2	$	36,911		$	63,175
Forward Loan Commitments—Residential Mortgage Loans Held for Sale	Level 2	$	(96	)	$	218
Interest Rate Lock Commitments (“IRLCs”)	Level 2	$	85		$	(147	)
Forward Loan Commitments—IRLCs	Level 2	$	(85	)	$	147

Aggregate unpaid principal and fair value of mortgage loans held for sale

		September 30,		September 30,		September 30,
	Aggregate unpaid principal balance		Fair value		Excess
At January 31, 2012	$	36,532	$	36,911	$	379
At October 31, 2011	$	62,765	$	63,175	$	410

Summary of amortized cost gross unrealized holding gains and losses

		September 30,			September 30,
	January 31, 2012			October 31, 2011
Amortized cost	$	143,766		$	233,852
Gross unrealized holding gains		46			28
Gross unrealized holding losses		(83	)		(308	)
Fair value	$	143,729		$	233,572

Fair value of inventory adjusted for impairment

		September 30,		September 30,
	Fair value of inventory, net of impairment		Impairment charges recognized
Three months ended:
January 31, 2012	$	49,758	$	6,425
January 31, 2011	$	56,105	$	5,475

Carrying value and estimated fair value of non performing loan portfolio

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Carrying amount	$	90,334	$	63,234
Estimated fair value	$	91,667	$	64,539

Book value and estimated fair value of the Company's debt

		September 30,		September 30,		September 30,		September 30,
	January 31, 2012				October 31, 2011
	Book value		Estimated fair value		Book value		Estimated fair value
Loans payable (a)	$	93,279	$	88,137	$	106,556	$	98,950
Senior notes (b)		1,499,371		1,634,469		1,499,371		1,614,010
Mortgage company warehouse loan (c)		31,864		31,864		57,409		57,409
	$	1,624,514	$	1,754,470	$	1,663,336	$	1,770,369

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Investments in Non-Performing Loan Portfolios and Foreclosed Real Estate (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Oct. 31, 2011
Summary of accretable yield and nonaccretable difference on investments in non-performing loans portfolios
Contractually required payments, including interest	$ 52,524
Nonaccretable difference	(5,125)
Cash flows expected to be collected	47,399
Accretable difference	(20,514)
Non-performing loans carrying amount	26,885
Investment in non-performing loan portfolios
Unpaid principal balance	216,620	171,559
Discount on acquired loans	(126,286)	(108,325)
Carrying value	90,334	63,234
Activity in accretable yield for investment in non-performing loan portfolios
Beginning Balance	42,326
Additions	20,514
Accretions	(3,228)
Reductions from foreclosures and other dispositions	(1,648)
Other	(120)
Ending Balance	$ 57,844

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Stock-Based Benefit Plans (Details Textual) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Oct. 31, 2011
Stock Based Benefit Plans (Additional Textual) [Abstract]
Shares issued under stock-based benefit plans	941,678
Aggregate unamortized value of outstanding stock based compensation awards	$ 23.3	$ 12.7
Percentage increases over closing price	30.00%
Performance Based Restricted Stock Units [Member]
Stock Based Benefit Plans (Textual) [Abstract]
Minimum percentage of units issued to the recipients of the base award	90.00%
Maximum percentage of units issued to the recipients of the base award	110.00%
RSU vesting period	Over a four-year period
Number of consecutive trading days	20 days
Average closing price of company common stock	measured over any 20 consecutive trading days ending on or prior to 5 years from date of issuance
Period of issuance of stock price based RSU	5 years
Non-Performance Based Restricted Stock Units [Member]
Stock Based Benefit Plans (Textual) [Abstract]
RSU vesting period	Over a four-year period

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Stock-Based Benefit Plans (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		12 Months Ended
	Jan. 31, 2012	Jan. 31, 2011	Oct. 31, 2012	Oct. 31, 2011
Weighted-average assumptions and the fair value used for stock option grants
Number of options issued (in thousands)
Stock-based compensation expense recognized and estimated amount to be recognized
Stock-compensation expense recognized	$ 5,626	$ 5,373
Stock Option [Member]
Weighted-average assumptions and the fair value used for stock option grants
Expected volatility			44.20%	45.38%
Weighted-average volatility			46.99%	47.73%
Risk-free interest rate				1.64%
Dividends
Weighted-average grant date fair value per share of options granted			8.7	7.94
Stock-based compensation expense recognized and estimated amount to be recognized
Stock-compensation expense recognized	$ 3,522	$ 4,588
Maximum [Member]
Weighted-average assumptions and the fair value used for stock option grants
Risk-free interest rate			1.77%
Expected life (years)			9.06	8.75
Maximum [Member] | Stock Option [Member]
Weighted-average assumptions and the fair value used for stock option grants
Expected volatility			50.24%	49.46%
Maximum [Member] | Employee Stock Option [Member] | Stock Option [Member]
Weighted-average assumptions and the fair value used for stock option grants
Risk-free interest rate				3.09%
Minimum [Member]
Weighted-average assumptions and the fair value used for stock option grants
Risk-free interest rate			0.78%
Expected life (years)			4.59	4.29

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Inventory (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Interest incurred, capitalized and expensed
Interest capitalized, beginning of period	$ 298,757	$ 267,278
Interest incurred	28,899	29,716
Interest expensed to cost of revenues	(16,321)	(18,082)
Interest directly expensed to statement of operations	0	(1,112)
Write-off against other income		(70)
Interest reclassified to property construction and office equipment		(3,000)
Interest capitalized, end of period	$ 311,335	$ 274,730

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Investments in and Advances to Unconsolidated Entities

3 Months Ended

Jan. 31, 2012

Investments in and Advances to Unconsolidated Entities [Abstract]

Investments in and Advances to Unconsolidated Entities (TO BE UPDATED BY LEGAL)

4. Investments in and Advances to Unconsolidated Entities

The Company has investments in and advances to various unconsolidated entities.

Development Joint Ventures

The Company has investments in and advances to a number of joint ventures with unrelated parties to develop land (“Development Joint Ventures”). Some of these Development Joint Ventures develop land for the sole use of the venture participants, including the Company, and others develop land for sale to the joint venture participants and to unrelated builders. The Company recognizes its share of earnings from the sale of home sites by the Development Joint Ventures to other builders. With regard to home sites the Company purchases from the Development Joint Ventures, the Company reduces its cost basis in those home sites by its share of the earnings on the home sites it purchases. At January 31, 2012, the Company had approximately $8.6 million, net of impairment charges, invested in or advanced to the Development Joint Ventures. In addition, the Company has a funding commitment of $3.5 million to one Development Joint Venture should an additional investment in that venture be required.

Some of the impairments related to Development Joint Ventures since 2008 were attributable to the Company’s investment in South Edge LLC (“South Edge”), a Development Joint Venture organized to develop a master planned community in the City of Henderson, Nevada. In 2008 and 2009, based on the deterioration of the real estate market in Nevada and the filing of lawsuits against the Company and the other parent companies of the members of South Edge by lenders to South Edge to collect on completion guaranties executed in favor of the lenders, the Company recognized impairments which totaled $70.3 million.

During fiscal 2010, the members of South Edge engaged in negotiations with the lenders to settle the lenders’ claims. Based on the status of the lawsuits and the ongoing negotiations, the Company believed that it had adequately provided for a settlement of these claims.

In December 2010, some of the lenders filed an involuntary bankruptcy petition against South Edge, claiming that the involuntary bankruptcy filing triggered obligations on payment guarantees executed by the Company and the other parent companies of the members of South Edge in favor of the lenders. In February, 2011, the Bankruptcy Court upheld the involuntary petition and appointed a trustee to take over the operations of South Edge. Based on this court decision, the potential liability under the payment guaranty and the further erosion in the value of the real property owned by South Edge, the Company recorded additional impairments of $20 million in the first quarter of fiscal 2011 and $9.6 million in the second quarter of fiscal 2011. The Company reversed $3.9 million of previously recognized impairments on South Edge in the fourth quarter of fiscal 2011 based on its evaluation of its expected potential liability at that time. The total cumulative impairment recognized for South Edge through January 31, 2012 was $96 million.

During the third quarter of fiscal 2011, the Company and a majority of the members of South Edge reached an agreement with the lenders and the bankruptcy trustee to settle the disputes involving South Edge. The settlement provided, among other things, for payments by the members of South Edge to the lenders (the Company’s share was $63.2 million, $57.6 million of which was paid in November 2011) and the conveyance of the real estate free of the prior debt owned by South Edge to a new joint venture organized by four of the members of South Edge.

The Company believes it has made adequate provision at January 31, 2012 for any remaining liabilities with respect to South Edge. The Company’s investment in the successor joint venture to South Edge is carried at nominal value.

The Company did not recognize any impairment charges in connection with the Development Joint Ventures in the three-month period ended January 31, 2012.

Planned Community Joint Venture

The Company entered into a joint venture in October 2008 for the development and sale of homes in a master planned community (the “Planned Community Joint Venture”). During both fiscal 2009 and 2010, the joint venture’s performance was as expected and the Company estimated that the fair value of its investment exceeded its carrying value at the end of each of the reporting periods. In the early part of fiscal 2011, the Company saw signs of increased sales activity consistent with the seasonality of that market and it continued to believe the investment was not impaired. In the late spring of 2011, demand for homes in this community unexpectedly weakened. When the Company evaluates the carrying value of its investment, it considers the current and long-term outlook for the operations of the community and the anticipated period of time, if ever, it would take for the fair value of the investment to recover above the carrying value of the investment. Applying that standard, the Company’s review of the joint venture’s expected future performance based on its historical performance and market conditions at that time, as well as expected sales paces and prices and the joint venture’s expected cash flows led the Company to determine that the value of its investment was impaired and that this impairment was other than temporary. As a result, in the second quarter of fiscal 2011, the Company recognized an impairment charge of $10.0 million. That market continued to worsen and, in the fourth quarter of fiscal 2011, the Company determined that the value of its investment was further impaired and that this impairment was other than temporary and the Company recognized an additional impairment charge of $5.2 million. Therefore, as of January 31, 2012, the Company had recognized cumulative impairment charges in connection with the Planned Community Joint Venture of $15.2 million.

At January 31, 2012, the Company had an investment of $30.7 million, net of the $15.2 million of impairments recognized, in this Planned Community Joint Venture. At January 31, 2012, the participants had agreed to contribute additional funds of up to $8.3 million each, if required. If a participant fails to make a required capital contribution, the other participant may make the additional contribution and diminish the non-contributing participant’s ownership interest.

At January 31, 2012, this joint venture did not have any indebtedness.

Condominium Joint Ventures

At January 31, 2012, the Company had an aggregate of $119.4 million of investments in and advances to five joint ventures with unrelated parties to develop luxury for-sale and rental residential units and commercial space (“Condominium Joint Ventures”).

In December 2011, the Company entered into a joint venture to develop a high-rise luxury for-sale/rental project in the metro-New York market. The Company has invested $76.7 million and is committed to make additional investments of $37.5 million. Under the terms of the agreement, upon completion of the construction of the building, the Company will acquire ownership of the top eighteen floors of the building to sell, for its own account, luxury condominium units and its partner will receive ownership of the lower floors containing residential, for lease units and retail space.

As of January 31, 2012, the Company had recognized cumulative impairment charges against its investments in the Condominium Joint Ventures and its pro rata share of impairment charges recognized by these Condominium Joint Ventures in the amount of $63.9 million. The Company did not recognize any impairment charges in connection with its Condominium Joint Ventures in the three-month period ended January 31, 2012 and 2011.

Toll Brothers Realty Trust and Trust II

In fiscal 2005, the Company, together with the Pennsylvania State Employees Retirement System (“PASERS”), formed Toll Brothers Realty Trust II (“Trust II”) to be in a position to invest in commercial real estate opportunities. Trust II is owned 50% by the Company and 50% by an affiliate of PASERS. At January 31, 2012, the Company had an investment of $0.4 million in Trust II. Prior to the formation of Trust II, the Company formed Toll Brothers Realty Trust (the “Trust”) in 1998 to invest in commercial real estate opportunities. The Trust is effectively owned one-third by the Company; one-third by Robert I. Toll, Bruce E. Toll (and members of his family), Douglas C. Yearley, Jr. and former members of the Company’s senior management; and one-third by an affiliate of PASERS (collectively, the “Shareholders”). As of January 31, 2012, the Company had a net investment in the Trust of $0.3 million. The Company provides development, finance and management services to the Trust and recognized fees under the terms of various agreements in the amounts of $0.5 million in each of the three-month periods ended January 31, 2012 and 2011. The Company believes that the transactions between itself and the Trust were on terms no less favorable than it would have agreed to with unrelated parties.

Structured Asset Joint Venture

In July 2010, the Company, through Gibraltar Capital and Asset Management LLC (“Gibraltar”), invested $29.1 million in a joint venture in which it is a 20% participant with two unrelated parties to purchase a 40% interest in an entity that owns and controls a portfolio of loans and real estate (“Structured Asset Joint Venture”). At January 31, 2012, the Company had an investment of $34.2 million in this Structured Asset Joint Venture. At January 31, 2012, the Company did not have any commitments to make additional contributions to the joint venture and has not guaranteed any of the joint venture’s liabilities. If the joint venture needs additional capital and a participant fails to make a requested capital contribution, the other participants may make a contribution in consideration for a preferred return or may make the additional capital contribution and diminish the non-contributing participant’s ownership interest.

General

At January 31, 2012, the Company had accrued $2.6 million of aggregate exposure with respect to its estimated obligations to unconsolidated entities in which it has an investment. The Company’s investments in these entities are accounted for using the equity method. The Company recognized $20.0 million of impairment charges related to its investments in and advances to its Development Joint Ventures in the three-month period ended January 31, 2011. The Company did not recognize any impairment charges related to its investments in and advances to unconsolidated entities in the three-month period ended January 31, 2012. The fiscal 2011 impairment charges related to these entities are included in “Loss from unconsolidated entities” in the Company’s consolidated statement of operations for the three month period ended January 31, 2011.

The condensed consolidated balance sheets, as of the dates indicated and the condensed consolidated statements of operations, for the periods indicated, for the Company’s unconsolidated entities in which it has an investment, aggregated by type of business, are as follows (in thousands):

Condensed Balance Sheets:

		September 30,		September 30,		September 30,		September 30,		September 30,
	January 31, 2012
	Develop- ment Joint Ventures		Home Building Joint Ventures		Toll Brothers Realty Trust I and II		Structured Asset Joint Venture		Total
Cash and cash equivalents	$	13,067	$	9,282	$	10,620	$	29,996	$	62,965
Inventory		191,031		296,781		5,542				493,354
Non-performing loan portfolio								288,130		288,130
Rental properties						176,979				176,979
Real estate owned (“REO”)						1,087		239,573		240,660
Other assets (1)		21,047		58,989		9,033		172,024		261,093
Total assets	$	225,145	$	365,052	$	203,261	$	729,723	$	1,523,181
Debt (1)	$	71,444	$	35,363	$	198,066	$	311,562	$	616,435
Other liabilities		21,127		9,363		4,473		424		35,387
Members’ equity		132,574		320,326		722		170,995		624,617
Non-controlling interest								246,742		246,742
Total liabilities and equity	$	225,145	$	365,052	$	203,261	$	729,723	$	1,523,181
Company’s net investment in unconsolidated entities (2)	$	8,592	$	150,135	$	700	$	34,199	$	193,626

		September 30,		September 30,		September 30,		September 30,		September 30,
	October 31, 2011
	Develop- ment Joint Ventures		Home Building Joint Ventures		Toll Brothers Realty Trust I and II		Structured Asset Joint Venture		Total
Cash and cash equivalents	$	14,190	$	10,663	$	11,726	$	48,780	$	85,359
Inventory		218,339		170,239		5,501				394,079
Non-performing loan portfolio								295,044		295,044
Rental properties						178,339				178,339
Real estate owned						1,087		230,872		231,959
Other assets (1)		150,316		20,080		9,675		159,143		339,214
Total assets	$	382,845	$	200,982	$	206,328	$	733,839	$	1,523,994
Debt (1)	$	327,856	$	50,515	$	198,927	$	310,847	$	888,145
Other liabilities		5,352		9,745		3,427		382		18,906
Members’ equity		49,637		140,722		3,974		172,944		367,277
Non-controlling interest								249,666		249,666
Total liabilities and equity	$	382,845	$	200,982	$	206,328	$	733,839	$	1,523,994
Company’s net investment in unconsolidated entities (2)	$	17,098	$	72,734	$	1,872	$	34,651	$	126,355

(1) Included in other assets at January 31, 2012 and October 31, 2011 of the Structured Asset Joint Venture is $165.5 million and $152.6 million, respectively, of restricted cash held in a defeasance account which will be used to repay debt of the Structured Asset Joint Venture.

(2) Differences between the Company’s net investment in unconsolidated entities and its underlying equity in the net assets of the entities is primarily a result of impairments related to the Company’s investments in unconsolidated entities, a loan made to one of the entities by the Company, and distributions from entities in excess of the carrying amount of the Company’s net investment.

Condensed Statements of Operations:

		September 30,		September 30,		September 30,			September 30,			September 30,
	For the three months ended January 31, 2012
	Develop- ment Joint Ventures		Home Building Joint Ventures		Toll Brothers Realty Trust I and II			Structured Asset Joint Venture			Total
Revenues	$	33,584	$	23,430	$	9,476		$	8,133		$	74,623
Cost of revenues		31,771		17,794		3,343			11,067			63,975
Other expenses		225		945		6,785			2,631			10,586
Loss on disposition of loans and REO									44			44
Total expenses—net		31,996		18,739		10,128			13,742			74,605
Income (loss) from operations		1,588		4,691		(652	)		(5,609	)		18
Other income		2,653		5					137			2,795
Net income (loss) before noncontrolling interest		4,241		4,696		(652	)		(5,472	)		2,813
Less: Net loss attributable to noncontrolling interest									(3,283	)		(3,283	)
Net income (loss)	$	4,241		4,696	$	(652	)	$	(2,189	)	$	6,096
Company’s equity in earnings (losses) of unconsolidated entities (3)	$	1,996	$	4,520	$	623		$	(452	)	$	6,687

		September 30,			September 30,		September 30,			September 30,			September 30,
	For the three months ended January 31, 2011
	Develop- ment Joint Ventures			Home Building Joint Ventures		Toll Brothers Realty Trust I and II			Structured Asset Joint Venture			Total
Revenues	$	1,085		$	88,014	$	9,150		$	12,002		$	110,251
Cost of revenues		1,159			69,169		3,489			9,558			83,375
Other expenses		157			3,009		6,002			3,271			12,439
Gain on disposition of loans and REO										(11,374	)		(11,374	)
Total expenses—net		1,316			72,178		9,491			1,455			84,440
Income (loss) from operations		(231	)		15,836		(341	)		10,547			25,811
Other income		2,379			36					88			2,503
Net income (loss) before noncontrolling interest		2,148			15,872		(341	)		10,635			28,314
Less: Net income attributable to noncontrolling interest										(6,383	)		(6,383	)
Net income (loss)	$	2,148		$	15,872	$	(341	)		4,252		$	21,931
Company’s equity in (losses) earnings of unconsolidated entities (3)	$	(20,000	)	$	7,934	$	464		$	600		$	(11,002	)

(3) Differences between the Company’s equity in earnings (losses) of unconsolidated entities and the underlying net income (loss) of the entities is primarily a result of impairments related to the Company’s investment in unconsolidated entities, distributions from entities in excess of the carrying amount of the Company’s net investment, and the Company’s share of the entities’ profits related to home sites purchased by the Company which reduces the Company’s cost basis of the home sites.

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Stock-Based Benefit Plans (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Stock-based compensation expense recognized and estimated amount to be recognized
Stock-compensation expense recognized	$ 5,626	$ 5,373

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Significant Accounting Policies (Details)	3 Months Ended
	Jan. 31, 2012
Additional Significant Accounting Policies (Textual) [Abstract]
Condition for accounting in investments as per equity method	Investments in 50% or less owned partnerships and affiliates are accounted for using the equity method unless it is determined that the Company has effective control of the entity, in which case the entity would be consolidated.
Percentage investment in partnerships and affiliates up to which accounted as equity method investment	50.00%
Minimum period to develop sell and deliver home in community after land development approval	4 years
Minimum Period to Develop Master Planned Communities	10 years

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Investments in Non-Performing Loan Portfolios and Foreclosed Real Estate (Tables)

3 Months Ended

Jan. 31, 2012

Investments in Non-Performing Loan Portfolios and Foreclosed Real Estate [Abstract]

Summary of accretable yield and nonaccretable difference on investments in non-performing loans portfolios

		September 30,
	Three months ended January 31, 2012
Contractually required payments, including interest	$	52,524
Nonaccretable difference		(5,125	)
Cash flows expected to be collected		47,399
Accretable difference		(20,514	)
Non-performing loans carrying amount	$	26,885

Investment in non-performing loan portfolios

		September 30,			September 30,
	January 31, 2012			October 31, 2011
Unpaid principal balance	$	216,620		$	171,559
Discount on acquired loans		(126,286	)		(108,325	)
Carrying value	$	90,334		$	63,234

Activity in accretable yield for investment in non-performing loan portfolios

		September 30,
Balance at October 31, 2011	$	42,326
Additions		20,514
Accretion		(3,228	)
Reductions from foreclosures and other dispositions		(1,648	)
Other		(120	)
Balance at January 31, 2012	$	57,844

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Investments in and Advances to Unconsolidated Entities (Tables)

3 Months Ended

Jan. 31, 2012

Investments in and Advances to Unconsolidated Entities [Abstract]

Condensed balance sheet aggregated by type of business

		September 30,		September 30,		September 30,		September 30,		September 30,
	January 31, 2012
	Develop- ment Joint Ventures		Home Building Joint Ventures		Toll Brothers Realty Trust I and II		Structured Asset Joint Venture		Total
Cash and cash equivalents	$	13,067	$	9,282	$	10,620	$	29,996	$	62,965
Inventory		191,031		296,781		5,542				493,354
Non-performing loan portfolio								288,130		288,130
Rental properties						176,979				176,979
Real estate owned (“REO”)						1,087		239,573		240,660
Other assets (1)		21,047		58,989		9,033		172,024		261,093
Total assets	$	225,145	$	365,052	$	203,261	$	729,723	$	1,523,181
Debt (1)	$	71,444	$	35,363	$	198,066	$	311,562	$	616,435
Other liabilities		21,127		9,363		4,473		424		35,387
Members’ equity		132,574		320,326		722		170,995		624,617
Non-controlling interest								246,742		246,742
Total liabilities and equity	$	225,145	$	365,052	$	203,261	$	729,723	$	1,523,181
Company’s net investment in unconsolidated entities (2)	$	8,592	$	150,135	$	700	$	34,199	$	193,626

		September 30,		September 30,		September 30,		September 30,		September 30,
	October 31, 2011
	Develop- ment Joint Ventures		Home Building Joint Ventures		Toll Brothers Realty Trust I and II		Structured Asset Joint Venture		Total
Cash and cash equivalents	$	14,190	$	10,663	$	11,726	$	48,780	$	85,359
Inventory		218,339		170,239		5,501				394,079
Non-performing loan portfolio								295,044		295,044
Rental properties						178,339				178,339
Real estate owned						1,087		230,872		231,959
Other assets (1)		150,316		20,080		9,675		159,143		339,214
Total assets	$	382,845	$	200,982	$	206,328	$	733,839	$	1,523,994
Debt (1)	$	327,856	$	50,515	$	198,927	$	310,847	$	888,145
Other liabilities		5,352		9,745		3,427		382		18,906
Members’ equity		49,637		140,722		3,974		172,944		367,277
Non-controlling interest								249,666		249,666
Total liabilities and equity	$	382,845	$	200,982	$	206,328	$	733,839	$	1,523,994
Company’s net investment in unconsolidated entities (2)	$	17,098	$	72,734	$	1,872	$	34,651	$	126,355

Condensed statements of operations aggregate by type of business

		September 30,		September 30,		September 30,			September 30,			September 30,
	For the three months ended January 31, 2012
	Develop- ment Joint Ventures		Home Building Joint Ventures		Toll Brothers Realty Trust I and II			Structured Asset Joint Venture			Total
Revenues	$	33,584	$	23,430	$	9,476		$	8,133		$	74,623
Cost of revenues		31,771		17,794		3,343			11,067			63,975
Other expenses		225		945		6,785			2,631			10,586
Loss on disposition of loans and REO									44			44
Total expenses—net		31,996		18,739		10,128			13,742			74,605
Income (loss) from operations		1,588		4,691		(652	)		(5,609	)		18
Other income		2,653		5					137			2,795
Net income (loss) before noncontrolling interest		4,241		4,696		(652	)		(5,472	)		2,813
Less: Net loss attributable to noncontrolling interest									(3,283	)		(3,283	)
Net income (loss)	$	4,241		4,696	$	(652	)	$	(2,189	)	$	6,096
Company’s equity in earnings (losses) of unconsolidated entities (3)	$	1,996	$	4,520	$	623		$	(452	)	$	6,687

		September 30,			September 30,		September 30,			September 30,			September 30,
	For the three months ended January 31, 2011
	Develop- ment Joint Ventures			Home Building Joint Ventures		Toll Brothers Realty Trust I and II			Structured Asset Joint Venture			Total
Revenues	$	1,085		$	88,014	$	9,150		$	12,002		$	110,251
Cost of revenues		1,159			69,169		3,489			9,558			83,375
Other expenses		157			3,009		6,002			3,271			12,439
Gain on disposition of loans and REO										(11,374	)		(11,374	)
Total expenses—net		1,316			72,178		9,491			1,455			84,440
Income (loss) from operations		(231	)		15,836		(341	)		10,547			25,811
Other income		2,379			36					88			2,503
Net income (loss) before noncontrolling interest		2,148			15,872		(341	)		10,635			28,314
Less: Net income attributable to noncontrolling interest										(6,383	)		(6,383	)
Net income (loss)	$	2,148		$	15,872	$	(341	)		4,252		$	21,931
Company’s equity in (losses) earnings of unconsolidated entities (3)	$	(20,000	)	$	7,934	$	464		$	600		$	(11,002	)

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Accrued Expenses (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Changes in the warranty accrual
Balance, beginning of year	$ 42,474	$ 45,835
Additions - homes closed during the year	1,871	1,929
Addition - liabilities acquired	731
Increase (decrease) to accruals for homes closed in prior periods	1,783	(66)
Charges incurred	(3,750)	(1,770)
Balance, end of year	$ 43,109	$ 45,928

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Acquisition (Details) (USD $)	1 Months Ended
	Nov. 30, 2011 Site Homes Community
Acquisition (Textual) [Abstract]
Cash spent by Company in acquisition of assets of Cam West Development LLC	$ 144,700,000
Number of homes delivered	29
Aggregate value of homes delivered	13,700,000
Average price of the homes in backlog	$ 471,000
Number of home sites owned included in assets	1,245
Number of home sites controlled through land purchase agreements	254
Increase in Number of Selling Community Count	15

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Accrued Expenses (Tables)

3 Months Ended

Jan. 31, 2012

Accrued Expenses [Abstract]

Accrued expenses

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Land, land development and construction	$	103,955	$	109,574
Compensation and employee benefit		91,016		96,037
Insurance and litigation		127,260		130,714
Commitments to unconsolidated entities		2,609		60,130
Warranty		43,109		42,474
Interest		29,611		25,968
Other		53,854		56,154
	$	451,414	$	521,051

Changes in the warranty accrual

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Balance, beginning of period	$	42,474		$	45,835
Additions – homes closed during the period		1,871			1,929
Addition – liabilities acquired		731
Increase (decrease) in accruals for homes closed in prior periods		1,783			(66	)
Charges incurred		(3,750	)		(1,770	)
Balance, end of period	$	43,109		$	45,928

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Income Taxes (Tables)

3 Months Ended

Jan. 31, 2012

Income Taxes [Abstract]

Reconciliation of Company's effective tax rate from federal statutory rate

		September 30,			September 30,			September 30,			September 30,
	Three months ended January 31,
	2012						2011
	$			%*			$			%*
Federal tax (benefit) provision at statutory rate		(2,243	)		(35.0	)		(5,966	)		(35.0	)
State taxes, net of federal benefit		(271	)		(4.2	)		(554	)		(3.3	)
Reversal of state tax provisions – finalization of audits								(2,340	)		(13.7	)
Increase in unrecognized tax benefits		1,500			23.4
Reversal of accrual for uncertain tax positions		(5,279	)		(82.4	)		(17,954	)		(105.3	)
Increase in deferred tax assets – net		(525	)		(8.2	)
Valuation allowance – recognized		4,089			63.8			7,027			41.2
Valuation allowance – reversed		(2,843	)		(44.3	)		(1,260	)		(7.4	)
Accrued interest on anticipated tax assessments		1,950			30.4			813			4.8
Other								(230	)		(1.3	)
Tax provision (benefit)		(3,622	)		(56.5	)		(20,464	)		(120.0	)

Tax Benefits potential interest and penalties

		September 30,
Recognized in statements of operations:
Three-month period ended January 31, 2012	$	3,000
Three-month period ended January 31, 2011	$	1,250

Tax benefit amount accrued for potential Interest and penalties

Accrued at:
January 31, 2012	$	29,500
October 31, 2011	$	29,200

Reconciliation of change in gross unrecognized tax benefits

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Balance, beginning of period	$	104,669		$	160,446
Increase in benefit as a result of tax positions taken in prior years		4,500			1,250
Decrease in benefit as a result of resolution of uncertain tax positions		(4,000	)		(17,954	)
Decrease in benefit as a result of completion of tax audits		(4,122	)		(3,600	)
Balance, end of period	$	101,047		$	140,142

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Inventory

3 Months Ended

Jan. 31, 2012

Inventory [Abstract]

Inventory

3. Inventory

Inventory at January 31, 2012 and October 31, 2011 consisted of the following (amounts in thousands):

		September 30,		September 30,
	January 31,		October 31,
	2012		2011
Land controlled for future communities	$	43,215	$	46,581
Land owned for future communities		1,068,747		979,145
Operating communities		2,543,138		2,390,997
	$	3,655,100	$	3,416,723

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 twelve months of the end of the fiscal period 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, less impairment charges recognized against the communities.

Communities that were previously offering homes for sale but are temporarily closed due to business conditions that do not have any remaining backlog and are not expected to reopen within twelve months of the end of the fiscal period being reported on have been classified as land owned for future communities

Information regarding the classification, number and carrying value of these temporarily closed communities, as of the date indicated, is provided in the table below.

		September 30,		September 30,
	January 31,		October 31,
	2012		2011
Land owned for future communities:
Number of communities		44		43
Carrying value (in thousands)	$	245,025	$	256,468
Operating communities:
Number of communities		6		2
Carrying value (in thousands)	$	49,723	$	11,076

During the three-month period ended January 31, 2011, the Company reclassified $20.0 million of inventory related to commercial retail space located in one of its high-rise projects to property, construction and office equipment. The $20.0 million was reclassified due to the completion of construction of the facilities and the substantial completion of the high-rise project of which the facilities are a part.

The Company provided for inventory impairment charges and the expensing of costs that it believed not to be recoverable, for the periods indicated; these are shown in the table below (amounts in thousands).

		September 30,		September 30,
	Three months ended January 31,
	2012		2011
Charge (recovery):
Land controlled for future communities	$	777	$	(349	)
Land owned for future communities		918
Operating communities		6,425		5,475
	$	8,120	$	5,126

At January 31, 2012, the Company evaluated its land purchase contracts to determine if any of the selling entities were VIEs and, if they were, whether the Company was the primary beneficiary of any of them. Under these land purchase contracts, the Company does not possess legal title to the land and its risk is generally limited to deposits paid to the sellers and the creditors of the sellers generally have no recourse against the Company. At January 31, 2012, the Company determined that 57 land purchase contracts, with an aggregate purchase price of $437.9 million, on which it had made aggregate deposits totaling $25.5 million, were VIEs, and that it was not the primary beneficiary of any VIE related to its land purchase contracts.

Interest incurred, capitalized and expensed, for the periods indicated, was as follows (amounts in thousands):

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Interest capitalized, beginning of period	$	298,757		$	267,278
Interest incurred		28,899			29,716
Interest expensed to cost of revenues		(16,321	)		(18,082	)
Interest directly expensed to operations					(1,112	)
Write-off against other income					(70	)
Interest reclassified to property, construction and office equipment					(3,000	)
Interest capitalized, end of period	$	311,335		$	274,730

Inventory impairment charges are recognized against all inventory costs of a community, such as land, land improvements, cost of home construction and capitalized interest. The amounts included in the table directly above reflect the gross amount of capitalized interest without allocation of any impairment charges recognized. The Company estimates that, had inventory impairment charges been allocated on a pro rata basis to the individual components of inventory, capitalized interest at January 31, 2012 and 2011 would have been reduced by approximately $53.9 million and $53.8 million, respectively.

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Stock-Based Benefit Plans (Tables)

3 Months Ended

Jan. 31, 2012

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation expense recognized and estimated amount to be recognized

		September 30,		September 30,
	2012		2011
Three months ended January 31:	$	5,626	$	5,373

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Aggregate outstanding Stock Price-Based RSUs		706,000		706,000
Cumulative unamortized value of Stock Price-Based RSUs (in thousands)	$	4,081	$	4,929

Summary of aggregate number and unamortized value of outstanding RSUs

		September 30,		September 30,
	2012		2011
Three months ended January 31:	$	314	$	27

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Aggregate outstanding RSUs		138,814		30,994
Cumulative unamortized value of RSUs (in thousands)	$	2,275	$	379

Weighted-average assumptions and the fair value used for stock option grants

	September 30,	September 30,
	2012	2011
Expected volatility	44.20% – 50.24%	45.38% – 49.46%
Weighted-average volatility	46.99%	47.73%
Risk-free interest rate	0.78% – 1.77%	1.64% – 3.09%
Expected life (years)	4.59 – 9.06	4.29 – 8.75
Dividends	none	none
Number of options issued (in thousands)
Weighted-average grant date fair value per share of options granted	$8.70	$7.94

Performance-based restricted stock units

		September 30,		September 30,
	2012		2011
Three months ended January 31:	$	3,522	$	4,588

Stock price-based restricted stock units

		September 30,
	2012
Estimated number to be issued		350,000
Closing price of the Company’s common stock on date of issuance	$	20.50
Estimated aggregate fair value of Performance-Based RSUs issued (in thousands)	$	7,185
Performance-Based RSU expense recognized in the three months ended January 31, 2012 (in thousands):	$	936
Unamortized value of Performance-Based RSUs at January 31, 2012 (in thousands):	$	6,249

Non-performance based restricted stock units

		September 30,
Three months ended January 31, 2012	$	848
Three months ended January 31, 2011	$	752

Employee Stock Option [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation expense recognized and estimated amount to be recognized

		September 30,		September 30,
	2012		2011
Number of RSUs issued		107,820		15,497
Closing price of the Company’s common stock on date of issuance	$	20.50	$	19.32
Aggregate fair value of RSUs issued (in thousands)	$	2,210	$	299

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Geographic Segments (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011	Oct. 31, 2011
Inventory
Inventory impairments and write-offs	$ 8,120	$ 5,126
Inventory	3,655,100		3,416,723
Investments in unconsolidated entities
Investments in and advances to unconsolidated entities	193,626		126,355
Impairment of investment in unconsolidated entities	0	20,000
Land controlled for future communities [Member]
Inventory
Inventory impairments and write-offs	777	(349)
Inventory	43,215		46,581
Operating communities [Member]
Inventory
Inventory impairments and write-offs	6,425	5,475
Inventory	2,543,138		2,390,997
Land owned for future communities [Member]
Inventory
Inventory impairments and write-offs	918
Inventory	1,068,747		979,145
North [Member]
Investments in unconsolidated entities
Investments in and advances to unconsolidated entities	119,389		40,734
North [Member] | Land controlled for future communities [Member]
Inventory
Inventory impairments and write-offs	24	158
Inventory	11,462		19,390
North [Member] | Operating communities [Member]
Inventory
Inventory impairments and write-offs	2,265	1,275
Inventory	764,010		738,473
North [Member] | Land owned for future communities [Member]
Inventory
Inventory	244,835		231,085
Mid-Atlantic [Member] | Land controlled for future communities [Member]
Inventory
Inventory impairments and write-offs	199	66
Inventory	22,045		21,592
Mid-Atlantic [Member] | Operating communities [Member]
Inventory
Inventory	682,497		659,081
Mid-Atlantic [Member] | Land owned for future communities [Member]
Inventory
Inventory	473,981		455,818
South [Member]
Investments in unconsolidated entities
Investments in and advances to unconsolidated entities	30,746		32,000
South [Member] | Land controlled for future communities [Member]
Inventory
Inventory impairments and write-offs	555	306
Inventory	5,016		3,812
South [Member] | Operating communities [Member]
Inventory
Inventory impairments and write-offs	4,160
Inventory	551,990		539,582
South [Member] | Land owned for future communities [Member]
Inventory
Inventory impairments and write-offs	918
Inventory	132,936		125,461
West [Member]
Investments in unconsolidated entities
Investments in and advances to unconsolidated entities	8,592		17,098
Impairment of investment in unconsolidated entities		20,000
West [Member] | Land controlled for future communities [Member]
Inventory
Inventory impairments and write-offs	(1)	(879)
Inventory	4,692		1,787
West [Member] | Operating communities [Member]
Inventory
Inventory impairments and write-offs		4,200
Inventory	544,641		453,861
West [Member] | Land owned for future communities [Member]
Inventory
Inventory	216,995		166,781
Corporate and other [Member]
Investments in unconsolidated entities
Investments in and advances to unconsolidated entities	$ 34,899		$ 36,523

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Geographic Segments (Tables)

3 Months Ended

Jan. 31, 2012

Geographic Segments [Abstract]

Revenue and (loss) income before income taxes and total assets

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Revenue:
North	$	75,580		$	82,497
Mid-Atlantic		100,799			103,815
South		76,466			61,903
West		69,110			85,901
Total	$	321,955		$	334,116
(Loss) income before income taxes:
North	$	1,201		$	7,068
Mid-Atlantic		10,642			8,088
South		(2,077	)		(1,348	)
West		5,603			(15,240	)
Corporate and other		(21,777	)		(15,615	)
Total	$	(6,408	)	$	(17,047	)

		September 30,		September 30,
	January 31, 2012		October 31, 2011
North	$	1,102,276	$	1,060,215
Mid-Atlantic		1,305,586		1,235,847
South		771,461		760,097
West		785,085		650,844
Corporate and other		1,010,494		1,348,243
Total	$	4,974,902	$	5,055,246

Inventory impairment charges, net carrying value of investing, and write-downs of investments

		September 30,		September 30,		September 30,			September 30,
	Net Carrying Value				Three months ended
	At January 31,		At October 31,		January 31,
	2012		2011		2012			2011
Inventory:
Land controlled for future communities:
North	$	11,462	$	19,390	$	24		$	158
Mid-Atlantic		22,045		21,592		199			66
South		5,016		3,812		555			306
West		4,692		1,787		(1	)		(879	)
		43,215		46,581		777			(349	)
Land owned for future communities:
North		244,835	$	231,085
Mid-Atlantic		473,981		455,818
South		132,936		125,461		918
West		216,995		166,781
		1,068,747		979,145		918			—
Operating communities:
North		764,010		738,473		2,265			1,275
Mid-Atlantic		682,497		659,081
South		551,990		539,582		4,160
West		544,641		453,861					4,200
		2,543,138		2,390,997		6,425			5,475
Total	$	3,655,100	$	3,416,723	$	8,120		$	5,126
Investments in and advances to unconsolidated entities:
North	$	119,389	$	40,734
South		30,746		32,000
West		8,592		17,098				$	20,000
Corporate		34,899		36,523
Total	$	193,626	$	126,355	$	—		$	20,000

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Investments in Non-Performing Loan Portfolios and Foreclosed Real Estate (Details Textual) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended
	Dec. 31, 2011 Loans	Jan. 31, 2012
Investments in Non-Performing Loan Portfolios and Foreclosed Real Estate (Textual) [Abstract]
Number of loan in portfolio	11
Loan portfolio outstanding balance	$ 51.4
Company recognized earnings from its investments in the loan portfolios		$ 2.1

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Fair Value Disclosures (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2012	Oct. 31, 2011
Corporate Securities [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Fair value of securities	$ 143,729	$ 233,572
Fair Value, Measurements, Recurring [Member] | Forward Loan Commitments - Residential Mortgage Loans Held for Sale [Member] | Level 2 [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Fair value of commitments	(96)	218
Fair Value, Measurements, Recurring [Member] | Interest Rate Lock Commitments [Member] | Level 2 [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Fair value of commitments	85	(147)
Fair Value, Measurements, Recurring [Member] | Forward Loan Commitments [Member] | Level 2 [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Fair value of commitments	(85)	147
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Loans Held-for-Sale [Member] | Level 2 [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Fair value of loans	$ 36,911	$ 63,175

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jan. 31, 2012	Oct. 31, 2011
ASSETS
Cash and cash equivalents	$ 575,694	$ 906,340
Marketable securities	143,729	233,572
Restricted cash	48,241	19,760
Inventory	3,655,100	3,416,723
Property, construction and office equipment, net	101,499	99,712
Receivables, prepaid expenses and other assets	98,191	105,576
Mortgage loans receivable	36,911	63,175
Customer deposits held in escrow	25,089	14,859
Investments in and advances to unconsolidated entities	193,626	126,355
Investments in non-performing loan portfolios and foreclosed real estate	96,822	69,174
Total assets	4,974,902	5,055,246
Liabilities:
Loans payable	93,279	106,556
Senior notes	1,491,442	1,490,972
Mortgage company warehouse loan	31,864	57,409
Customer deposits	97,334	83,824
Accounts payable	105,311	96,817
Accrued expenses	451,414	521,051
Income taxes payable	100,276	106,066
Total liabilities	2,370,920	2,462,695
Stockholders' equity:
Preferred stock, none issued
Common stock,168,689 and 168,675 shares issued at January 31, 2012 and October 31, 2011, respectively	1,687	1,687
Additional paid-in capital	399,743	400,382
Retained earnings	2,231,465	2,234,251
Treasury stock, at cost --2,021 shares and 2,946 shares at January 31, 2012 and October 31, 2011, respectively	(31,531)	(47,065)
Accumulated other comprehensive loss	(3,563)	(2,902)
Total stockholders' equity	2,597,801	2,586,353
Noncontrolling interest	6,181	6,198
Total equity	2,603,982	2,592,551
Total liabilities and stockholders' equity	$ 4,974,902	$ 5,055,246

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Inventory (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011	Oct. 31, 2011
Total Inventory
Inventory	$ 3,655,100		$ 3,416,723
Inventory impairment charges and expensing of costs that not to be recoverable
Inventory impairments and write-offs	8,120	5,126
Land controlled for future communities [Member]
Total Inventory
Inventory	43,215		46,581
Inventory impairment charges and expensing of costs that not to be recoverable
Inventory impairments and write-offs	777	(349)
Land owned for future communities [Member]
Total Inventory
Inventory	1,068,747		979,145
Inventory impairment charges and expensing of costs that not to be recoverable
Inventory impairments and write-offs	918
Operating communities [Member]
Total Inventory
Inventory	2,543,138		2,390,997
Inventory impairment charges and expensing of costs that not to be recoverable
Inventory impairments and write-offs	$ 6,425	$ 5,475

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Significant Accounting Policies

3 Months Ended

Jan. 31, 2012

Significant Accounting Policies [Abstract]

Significant Accounting Policies

1. Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements include the accounts of Toll Brothers, Inc. (the “Company”), a Delaware corporation, and those majority-owned subsidiaries it controls. 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 the Company has effective control of the entity, in which case the entity would be consolidated.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. The October 31, 2011 balance sheet amounts and disclosures included herein have been derived from the Company’s October 31, 2011 audited financial statements. Since the accompanying condensed consolidated financial statements do not include all the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements, the Company suggests that they be read in conjunction with the consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended October 31, 2011. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary to present fairly the Company’s financial position as of January 31, 2012, the results of its operations for the three-month periods ended January 31, 2012 and 2011, and its cash flows for the three-month periods ended January 31, 2012 and 2011. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year.

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 re-opens. While the community remains closed, carrying costs such as real estate taxes are expensed as incurred.

The Company capitalizes certain interest costs to qualified inventory during the development and construction period of its communities in accordance with ASC 835-20, “Capitalization of Interest” (“ASC 835-20”). Capitalized interest is charged to cost of revenues when the related inventory is delivered. Interest incurred on homebuilding indebtedness in excess of qualified inventory, as defined in ASC 835-20, is charged directly to operations in the period incurred.

Once a parcel of land has been approved for development and the Company opens one of its typical communities, it may take four 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. The Company’s master planned communities, consisting of several smaller communities, may take up to ten years or more to complete. Because the Company’s inventory is considered a long-lived asset under GAAP, the Company is required, under ASC 360, to regularly review the carrying value of each community and write down the value of those communities for which it believes the values have been impaired.

Current Communities: When the profitability of a current 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 revenues in the period in which the impairment is determined. In estimating the future undiscounted cash flow of a community, the Company uses various estimates such as: (a) 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 the Company or by other builders; (b) the expected sales prices and sales incentives to be offered in a community; (c) 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; (d) 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 (e) 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: The Company evaluates all land held for future communities or future sections of current communities, whether owned or under contract, to determine whether or not it expects to proceed with the development of the land as originally contemplated. This evaluation encompasses the same types of estimates used for current 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 will 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, the Company decides (a) as to land under contract to be purchased, whether the contract will likely be terminated or renegotiated, and (b) as to land owned, whether the land will likely be developed as contemplated or in an alternative manner, or should be sold. The Company then further determines whether costs that have been capitalized to the community are recoverable or should be written off. The write-off is charged to 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 the Company at the time such estimates are made and its expectations of future operations and economic conditions. Should the estimates or expectations used in determining estimated fair value deteriorate in the future, the Company may be required to recognize additional impairment charges and write-offs related to current and future communities.

Variable Interest Entities: The Company has a significant number of land purchase contracts and several investments in unconsolidated entities which it evaluates in accordance with ASC 810, “Consolidation” (“ASC 810”). The Company analyzes its land purchase contracts and the unconsolidated entities in which it has an investment to determine whether the land sellers and unconsolidated entities are variable interest entities (“VIEs”) and, if so, whether the Company is the primary beneficiary. If the Company is determined to be the primary beneficiary of a VIE, it must consolidate the VIE. A VIE is an entity with insufficient equity investment or in which the equity investors lack some of the characteristics of a controlling financial interest. In determining whether it is the primary beneficiary, the Company considers, among other things, whether it has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, including, but not limited to, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE. The Company also considers whether it has the obligation to absorb losses of or the right to receive benefits from the VIE.

Fair Value Disclosures

The Company uses 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 which 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.

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Income Taxes (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Reconciliation of change in gross unrecognized tax benefits
Balance, November 1,	$ 104,669	$ 160,446
Increase in benefit as a result of tax positions taken in prior years	4,500	1,250
Decrease in benefit as a result of resolution of uncertain tax positions	(4,000)	(17,954)
Decrease in benefit as a result of completion of tax audits	(4,122)	(3,600)
Balance, January 31,	$ 101,047	$ 140,142

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Stock Repurchase Program (Tables)

3 Months Ended

Jan. 31, 2012

Stock Repurchase Program [Abstract]

Stock repurchase program

		September 30,		September 30,
	Three months ended January 31,
	2012		2011
Number of shares purchased		3,000		8,000
Average price per share	$	20.61	$	19.23
Remaining authorization at January 31 (in thousands):		8,783		11,822

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Stock-Based Benefit Plans (Details 4) (USD $) In Thousands, except Share data, unless otherwise specified	Jan. 31, 2012	Oct. 31, 2011
Stock Price Based Restricted Stock Units [Member]
Summary of aggregate number and unamortized value of outstanding stock price based RSUs
Aggregate outstanding RSUs	706,000	706,000
Cumulative unamortized value of RSUs	$ 4,081	$ 4,929
Non-Performance Based Restricted Stock Units [Member]
Summary of aggregate number and unamortized value of outstanding stock price based RSUs
Aggregate outstanding RSUs	138,814	30,994
Cumulative unamortized value of RSUs	$ 2,275	$ 379

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Commitments and Contingencies

3 Months Ended

Jan. 31, 2012

Legal Proceedings, Commitments and Contingencies [Abstract]

Commitments and Contingencies

17. Commitments and Contingencies

Land Purchase Commitments

Generally, the Company’s option and purchase agreements to acquire land parcels do not require the Company to purchase those land parcels, although the Company may, in some cases, forfeit any deposit balance outstanding if and when it terminates an option and purchase agreement. If market conditions are weak, approvals needed to develop the land are uncertain or other factors exist that make the purchase undesirable, the Company may not expect to acquire the land. Whether an option and purchase agreement is legally terminated or not, the Company reviews the amount recorded for the land parcel subject to the option and purchase agreement to determine if the amount is recoverable. While the Company may not have formally terminated the option and purchase agreements for those land parcels that it does not expect to acquire, it has written off any non-refundable deposits and costs previously capitalized to such land parcels in the periods that it determined such costs were not recoverable.

Information regarding the Company’s purchase commitments, as of the date indicated, is provided in the table below (amounts in thousands).

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Aggregate purchase commitments:
Unrelated parties	$	539,636	$	551,905
Unconsolidated entities that the Company has investments in		124,387		12,471
Total	$	664,023	$	564,376
Deposits against aggregate purchase commitments	$	32,199	$	37,987
Credit to be received from amounts previously contributed to unconsolidated entities		75,600
Additional cash required to acquire land		556,224		526,389
Total	$	664,023	$	564,376

The Company has additional land parcels under option that have been excluded from the aforementioned aggregate purchase amounts since it does not believe that it will complete the purchase of these land parcels and no additional funds will be required from the Company to terminate these contracts.

Investments in and Advances to Unconsolidated Entities

See Note 4, “Investments in and Advances to Unconsolidated Entities,” for more information regarding the Company’s commitments to these entities.

Surety Bonds and Letters of Credit

At January 31, 2012, the Company had outstanding surety bonds amounting to $367.1 million, primarily related to its obligations to various governmental entities to construct improvements in the Company’s various communities. The Company estimates that $206.6 million of work remains on these improvements. The Company has an additional $65.7 million of surety bonds outstanding that guarantee other obligations of the Company. The Company does not believe it is probable that any outstanding bonds will be drawn upon.

At January 31, 2012, the Company had outstanding letters of credit of $83.5 million, including $70.2 million under its credit facility and $13.3 million collateralized by restricted cash. These letters of credit were issued to secure various financial obligations of the Company including insurance policy deductibles and other claims, land deposits and security to complete improvements in communities which it is operating. The Company believes it is not probable that any outstanding letters of credit will be drawn upon.

Backlog

At January 31, 2012, the Company had agreements of sale outstanding to deliver 1,784 homes with an aggregate sales value of $1.1 billion.

Mortgage Commitments

The Company’s mortgage subsidiary provides mortgage financing for a portion of the Company’s home closings. For those home buyers to whom the Company’s mortgage subsidiary provides mortgages, it determines whether the home buyer qualifies for the mortgage he or she is seeking based upon information provided by the home buyer and other sources. For those home buyers that qualify, the Company’s 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, the Company’s mortgage subsidiary agrees to sell the proposed mortgage loan to one of several outside recognized mortgage financing institutions (“investors”), which is willing to honor the terms and conditions, including interest rate, committed to the home buyer. The Company believes that these investors have adequate financial resources to honor their commitments to its mortgage subsidiary.

Information regarding the Company’s mortgage commitments, as of the date indicated, is provided in the table below (amounts in thousands).

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Aggregate mortgage loan commitments:
IRLCs	$	92,623	$	129,553
Non-IRLCs		342,633		306,722
Total	$	435,256	$	436,275
Investor commitments to purchase:
IRLCs	$	92,623	$	129,553
Mortgage loans receivable		34,385		60,680
Total	$	127,008	$	190,233

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(Loss) Income Per Share Information (Tables)

3 Months Ended

Jan. 31, 2012

(Loss) Income Per Share Information [Abstract]

Calculation of (loss) income per share

		September 30,		September 30,
	Three months ended January 31,
	2012		2011
Basic weighted-average shares		166,311		166,677
Common stock equivalents (a)		—		1,444
Diluted weighted-average shares		166,311		168,121
Common stock equivalents excluded from diluted weighted-average shares due to anti-dilutive effect (a)		796		—
Weighted average number of anti-dilutive options (b)		5,906		8,383
Shares issued under stock incentive and employee stock purchase plans		942		414

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Supplemental Disclosure to Statements of Cash Flows

3 Months Ended

Jan. 31, 2012

Supplemental Disclosure to Statements of Cash Flows [Abstract]

Supplemental Disclosure to Statements of Cash Flows

19. Supplemental Disclosure to Statements of Cash Flows

The following are supplemental disclosures to the statements of cash flows for the three months ended January 31, 2012 and 2011 (amounts in thousands):

		September 30,			September 30,
	2012			2011
Cash flow information:
Interest paid, net of amount capitalized				$	587
Interest capitalized, net of amount paid	$	766
Income tax payment	$	2,093
Income tax refunds				$	381
Non-cash activity:
Cost of inventory acquired through seller financing municipal bonds or recorded due to VIE criteria, net	$	431		$	21,584
Increase in SERP benefits	$	310
Miscellaneous (decreases) increases to inventory	$	(75	)	$	2,137
Reclassification of inventory to property, construction and office equipment				$	20,005
(Increase) reduction of investments in unconsolidated entities due to increase/reduction in letters of credit or accrued liabilities	$	(26	)	$	19,106
Transfer of inventory to investment in non-performing loan portfolios and foreclosed real estate	$	802
Transfer of inventory to investment in unconsolidated entities	$	5,793
Unrealized loss on derivative held by equity investee	$	795
Miscellaneous (decreases) increases to investments in unconsolidated entities	$	(18	)	$	540
Acquisition of a Business:
Fair value of assets purchased	$	149,959
Liabilities assumed	$	5,213
Cash paid	$	144,746

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Employee Retirement Plans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Costs and payments related to supplemental retirement plans
Service cost	$ 97	$ 76
Interest cost	303	323
Amortization of prior service obligation	184	173
Amortization of unrecognized losses	17
Total costs	601	572
Benefits paid	$ 115	$ 34

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Acquisition

3 Months Ended

Jan. 31, 2012

Acquisition [Abstract]

Acquisition

2. Acquisition

In November 2011, the Company acquired substantially all of the assets of CamWest Development LLC (“CamWest”) for approximately $144.7 million in cash. The assets acquired were primarily inventory. As part of the acquisition, the Company assumed contracts to deliver approximately 29 homes with an aggregate value of $13.7 million. The average price of the homes in backlog was approximately $471,000. The assets the Company acquired included approximately 1,245 home sites owned and 254 home sites controlled through land purchase agreements. The Company’s selling community count increased by 15 communities at the acquisition date. The acquisition of the assets of CamWest was not material to the Company’s results of operations or its financial condition.

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Condensed Consolidated Balance Sheets (Parenthetical)	Jan. 31, 2012	Oct. 31, 2011
Condensed Consolidated Balance Sheets [Abstract]
Preferred stock, shares issued
Common stock, shares issued	168,689	168,675
Treasury stock, at cost	2,021	2,946

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Stock Repurchase Program

3 Months Ended

Jan. 31, 2012

Stock Repurchase Program [Abstract]

Stock Repurchase Program

12. Stock Repurchase Program

In March 2003, the Company’s Board of Directors authorized the repurchase of up to 20 million shares of its common stock, par value $.01, from time to time, in open market transactions or otherwise, for the purpose of providing shares for its various employee benefit plans. The table below provides, for the periods indicated, information about the Company’s share repurchase program.

		September 30,		September 30,
	Three months ended January 31,
	2012		2011
Number of shares purchased		3,000		8,000
Average price per share	$	20.61	$	19.23
Remaining authorization at January 31 (in thousands):		8,783		11,822

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Document and Entity Information	3 Months Ended
	Jan. 31, 2012	Mar. 01, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	TOLL BROTHERS INC
Entity Central Index Key	0000794170
Document Type	10-Q
Document Period End Date	Jan. 31, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--10-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		166,729,000

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(Loss) Income Per Share Information

3 Months Ended

Jan. 31, 2012

(Loss) Income Per Share Information [Abstract]

(Loss) Income per Share Information

13. (Loss) Income per Share Information

The table below provides, for the periods indicated, information pertaining to the calculation of (loss) income per share, common stock equivalents, weighted average number of anti-dilutive option and shares issued (amounts in thousands):

		September 30,		September 30,
	Three months ended January 31,
	2012		2011
Basic weighted-average shares		166,311		166,677
Common stock equivalents (a)		—		1,444
Diluted weighted-average shares		166,311		168,121
Common stock equivalents excluded from diluted weighted-average shares due to anti-dilutive effect (a)		796		—
Weighted average number of anti-dilutive options (b)		5,906		8,383
Shares issued under stock incentive and employee stock purchase plans		942		414

(a) Common stock equivalents represent the dilutive effect of outstanding in-the-money stock options. For the three-month period ended January 31, 2012, there were no incremental shares attributed to outstanding options to purchase common stock because the Company had a net loss in the period and any incremental shares would be anti-dilutive.

(b) Based upon the average closing price of the Company’s common stock on the NYSE for the period.

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Commitments and Contingencies (Details 1) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2012	Oct. 31, 2011
Company's mortgage commitments
Aggregate mortgage loan commitments	$ 435,256	$ 436,275
Investor commitments to purchase	127,008	190,233
Mortgage loans receivable [Member]
Company's mortgage commitments
Investor commitments to purchase	34,385	60,680
Interest Rate Lock Commitments [Member]
Company's mortgage commitments
Aggregate mortgage loan commitments	92,623	129,553
Investor commitments to purchase	92,623	129,553
Non IRLC [Member]
Company's mortgage commitments
Aggregate mortgage loan commitments	$ 342,633	$ 306,722

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Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Condensed Consolidated Statements of Operations [Abstract]
Revenues	$ 321,955	$ 334,116
Cost of revenues	271,608	281,965
Selling, general and administrative	69,637	61,251
Interest expense	0	1,112
Total	341,245	344,328
Loss from operations	(19,290)	(10,212)
Other:
Income (loss) from unconsolidated entities	6,687	(11,002)
Interest and other	6,195	4,167
Loss before income tax benefit	(6,408)	(17,047)
Income tax benefit	(3,622)	(20,464)
Net (loss) income	$ (2,786)	$ 3,417
(Loss) income per share:
Basic	$ (0.02)	$ 0.02
Diluted	$ (0.02)	$ 0.02
Weighted average number of shares:
Basic	166,311	166,677
Diluted	166,311	168,121

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Accrued Expenses

3 Months Ended

Jan. 31, 2012

Accrued Expenses [Abstract]

Accrued Expenses

7. Accrued Expenses

Accrued expenses at January 31, 2012 and October 31, 2011 consisted of the following (amounts in thousands):

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Land, land development and construction	$	103,955	$	109,574
Compensation and employee benefit		91,016		96,037
Insurance and litigation		127,260		130,714
Commitments to unconsolidated entities		2,609		60,130
Warranty		43,109		42,474
Interest		29,611		25,968
Other		53,854		56,154
	$	451,414	$	521,051

The Company accrues for expected warranty costs at the time each home is closed and title and possession are transferred to the home buyer. Costs are accrued based upon historical experience. The table below provides, for the periods indicated, a reconciliation of the changes in the Company’s warranty accrual (amounts in thousands):

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Balance, beginning of period	$	42,474		$	45,835
Additions – homes closed during the period		1,871			1,929
Addition – liabilities acquired		731
Increase (decrease) in accruals for homes closed in prior periods		1,783			(66	)
Charges incurred		(3,750	)		(1,770	)
Balance, end of period	$	43,109		$	45,928

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Subsequent Event/Senior Notes Payable

3 Months Ended

Jan. 31, 2012

Senior Notes Payable [Abstract]

Subsequent Event/Senior Notes Payable

6. Subsequent Event/Senior Notes Payable

On February 7, 2012, the Company, through Toll Brothers Finance Corp., issued $300 million principal amount of 5.875% Senior Notes due 2022 (the “5.875% Senior Notes”). The Company received $296.2 million of net proceeds from the issuance of the 5.875% Senior Notes.

On March 5, 2012, the Company, through Toll Brothers Finance Corp., issued an additional $119.9 million principal amount of its 5.875% Senior Notes in exchange for $80.7 million principal amount of its 6.875% Senior Notes due 2012 and for $36.9 million principal amount of its 5.95% Senior Notes due 2013. The Company expects to recognize a charge of approximately $1.1 million in the quarter ending April 30, 2012 representing the aggregate costs associated with the exchange of both series of notes.

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Geographic Segments

3 Months Ended

Jan. 31, 2012

Geographic Segments [Abstract]

Geographic Segments

18. Geographic Segments

Revenue and (loss) income before income taxes for each of the Company’s geographic segments, for the periods indicated, were as follows (amounts in thousands):

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Revenue:
North	$	75,580		$	82,497
Mid-Atlantic		100,799			103,815
South		76,466			61,903
West		69,110			85,901
Total	$	321,955		$	334,116
(Loss) income before income taxes:
North	$	1,201		$	7,068
Mid-Atlantic		10,642			8,088
South		(2,077	)		(1,348	)
West		5,603			(15,240	)
Corporate and other		(21,777	)		(15,615	)
Total	$	(6,408	)	$	(17,047	)

“Corporate and other” is comprised principally of general corporate expenses such as the Offices of the Executive Chairman, the Chief Executive Officer and President, and the corporate finance, accounting, audit, tax, human resources, risk management, marketing and legal groups, directly expensed interest, interest income and income from the Company’s ancillary businesses and income (loss) from a number of its unconsolidated entities.

Total assets for each of the Company’s geographic segments, as of the date indicated, are shown in the table below (amounts in thousands).

		September 30,		September 30,
	January 31, 2012		October 31, 2011
North	$	1,102,276	$	1,060,215
Mid-Atlantic		1,305,586		1,235,847
South		771,461		760,097
West		785,085		650,844
Corporate and other		1,010,494		1,348,243
Total	$	4,974,902	$	5,055,246

Corporate and other is comprised principally of cash and cash equivalents, marketable securities, restricted cash, the assets of the Company’s manufacturing facilities and mortgage subsidiary, and its Gibraltar investments.

The Company provided for inventory impairment charges and the expensing of costs that it believed not to be recoverable and write-downs of its investments in unconsolidated entities (including its pro-rata share of impairment charges recognized by the unconsolidated entities in which it has an investment) for the periods indicated, is shown in the table below; the net carrying value of inventory and investments in and advances to unconsolidated entities for each of the Company’s geographic segments, as of the date indicated, is also shown (amounts in thousands).

		September 30,		September 30,		September 30,			September 30,
	Net Carrying Value				Three months ended
	At January 31,		At October 31,		January 31,
	2012		2011		2012			2011
Inventory:
Land controlled for future communities:
North	$	11,462	$	19,390	$	24		$	158
Mid-Atlantic		22,045		21,592		199			66
South		5,016		3,812		555			306
West		4,692		1,787		(1	)		(879	)
		43,215		46,581		777			(349	)
Land owned for future communities:
North		244,835	$	231,085
Mid-Atlantic		473,981		455,818
South		132,936		125,461		918
West		216,995		166,781
		1,068,747		979,145		918			—
Operating communities:
North		764,010		738,473		2,265			1,275
Mid-Atlantic		682,497		659,081
South		551,990		539,582		4,160
West		544,641		453,861					4,200
		2,543,138		2,390,997		6,425			5,475
Total	$	3,655,100	$	3,416,723	$	8,120		$	5,126
Investments in and advances to unconsolidated entities:
North	$	119,389	$	40,734
South		30,746		32,000
West		8,592		17,098				$	20,000
Corporate		34,899		36,523
Total	$	193,626	$	126,355	$	—		$	20,000

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Fair Value Disclosures

3 Months Ended

Jan. 31, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures

14. Fair Value Disclosures

The table below provides, as of the date indicated, a summary of assets (liabilities) related to the Company’s financial instruments, measured at fair value on a recurring basis (amounts in thousands).

	September 30,		September 30,			September 30,
		Fair value
Financial Instrument	Fair value hierarchy	January 31, 2012			October 31, 2011
Corporate Securities	Level 1	$	143,729		$	233,572
Residential Mortgage Loans Held for Sale	Level 2	$	36,911		$	63,175
Forward Loan Commitments—Residential Mortgage Loans Held for Sale	Level 2	$	(96	)	$	218
Interest Rate Lock Commitments (“IRLCs”)	Level 2	$	85		$	(147	)
Forward Loan Commitments—IRLCs	Level 2	$	(85	)	$	147

At January 31, 2012 and October 31, 2011, the carrying value of cash and cash equivalents and restricted cash approximated fair value.

At the end of the reporting period, the Company determines the fair value of its mortgage loans held for sale and the forward loan commitments it has entered into as a hedge against the interest rate risk of its 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 by applying such pricing to the mortgage loan portfolio. The Company recognizes the difference between the fair value and the unpaid principal balance of mortgage loans held for sale as a gain or loss. In addition, the Company recognizes the fair value of its forward loan commitments as a gain or loss. These gains and losses are included in interest and other income. Interest income on mortgage loans held for sale is calculated based upon the stated interest rate of each loan and is included in “interest and other income”.

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

		September 30,		September 30,		September 30,
	Aggregate unpaid principal balance		Fair value		Excess
At January 31, 2012	$	36,532	$	36,911	$	379
At October 31, 2011	$	62,765	$	63,175	$	410

IRLCs represent individual borrower agreements that commit the Company 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. The Company utilizes 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 the Company agrees 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. The Company estimates 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. To manage the risk of non-performance of investors regarding the Forward Commitments, the Company assesses the credit worthiness of the investors on a periodic basis.

The table below provides, as of the date indicated, the amortized cost, gross unrealized holding gains, gross unrealized holding losses and fair value of marketable securities (amounts in thousands).

		September 30,			September 30,
	January 31, 2012			October 31, 2011
Amortized cost	$	143,766		$	233,852
Gross unrealized holding gains		46			28
Gross unrealized holding losses		(83	)		(308	)
Fair value	$	143,729		$	233,572

The remaining contractual maturities of marketable securities as of January 31, 2012 ranged from less than one month to nine months.

The Company recognizes 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. See Note 1, “Significant Accounting Policies, Inventory” for additional information regarding the Company’s methodology on determining fair value. The table below provides, for the periods indicated, the fair value of inventory whose carrying value was adjusted and the amount of impairment charges recognized (amounts in thousands).

		September 30,		September 30,
	Fair value of inventory, net of impairment		Impairment charges recognized
Three months ended:
January 31, 2012	$	49,758	$	6,425
January 31, 2011	$	56,105	$	5,475

Gibraltar’s portfolio of non-performing loans was recorded at fair value at inception based on the acquisition price as determined by Level 3 inputs. The estimated fair value was determined using Level 3 inputs and was based on discounted future cash flows generated by the loans discounted at the rates used to value the portfolios at the acquisition dates. The table below provides, as of the date indicated, the carrying amount and estimated fair value of the non-performing loan portfolios (amounts in thousands).

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Carrying amount	$	90,334	$	63,234
Estimated fair value	$	91,667	$	64,539

The table below provides, as of the date indicated, the book value and estimated fair value of the Company’s debt (amounts in thousands).

		September 30,		September 30,		September 30,		September 30,
	January 31, 2012				October 31, 2011
	Book value		Estimated fair value		Book value		Estimated fair value
Loans payable (a)	$	93,279	$	88,137	$	106,556	$	98,950
Senior notes (b)		1,499,371		1,634,469		1,499,371		1,614,010
Mortgage company warehouse loan (c)		31,864		31,864		57,409		57,409
	$	1,624,514	$	1,754,470	$	1,663,336	$	1,770,369

(a) The estimated fair value of loans payable was based upon their indicated market prices or the interest rates that the Company believed were available to it for loans with similar terms and remaining maturities as of the applicable valuation date.

(b) The estimated fair value of the Company’s senior notes is based upon their indicated market prices.

(c) The Company believes that the carrying value of its mortgage company loan borrowings approximates their fair value.

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Supplemental Disclosure to Statements of Cash Flows (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Cash flow information:
Interest paid, net of amount capitalized	$ 0	$ 587
Interest capitalized, net of amount paid	766
Income tax payment	2,093
Income tax refunds		381
Non-cash activity:
Cost of inventory acquired through seller financing municipal bonds or recorded due to VIE criteria, net	431	21,584
Increase in SERP Benefits	310
Miscellaneous (decreases) increases to inventory	(75)	2,137
Reclassification of inventory to property, construction and office equipment	0	20,005
(Increase) reduction of investments in unconsolidated entities due to increase/reduction in letters of credit or accrued liabilities	(26)	19,106
Transfer of Inventory to Investment in Non-Performing Loan Portfolios and Foreclosed Real Estate	802
Transfer of inventory to investment in unconsolidated entities	5,793
Unrealized loss on derivative held by equity investee	795
Miscellaneous (decreases) increases to investments in unconsolidated entities	(18)	540
Acquisition of a Business:
Fair value of assets purchased	149,959	0
Liabilities assumed	5,213	0
Cash paid	$ 144,746	$ 0

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Employee Retirement Plans

3 Months Ended

Jan. 31, 2012

Employee Retirement Plans [Abstract]

Employee Retirement Plans

10. Employee Retirement Plans

The Company has two unfunded supplemental retirement plans (“SERPs”) for certain employees. The table below provides, for the periods indicated, costs recognized and payments made related to its SERPs (amounts in thousands):

		September 30,		September 30,
	Three months  ended January 31,
	2012		2011
Service cost	$	97	$	76
Interest cost		303		323
Amortization of prior service obligation		184		173
Amortization of unrecognized losses		17
Total costs	$	601	$	572
Benefits paid	$	115	$	34

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Income Taxes (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2012 State	Jan. 31, 2011	Oct. 31, 2011
Income Taxes (Textual) [Abstract]
State taxes net of federal benefit, percentage	6.50%	5.00%
Time period of forward tax losses	20 years
Tax loss carryforwards	$ 52.0
Valuation allowances against our entire net deferred federal tax assets	354.6		353.4
Recognized cumulative valuation allowances against state deferred tax assets	74.0
State tax deferred tax assets	$ 28.9
Number of states	20

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Income Taxes

3 Months Ended

Jan. 31, 2012

Income Taxes [Abstract]

Income Taxes

8. Income Taxes

The table below provides, for the periods indicated, a reconciliation of the Company’s effective tax rate from the federal statutory tax rate (amounts in thousands).

		September 30,			September 30,			September 30,			September 30,
	Three months ended January 31,
	2012						2011
	$			%*			$			%*
Federal tax (benefit) provision at statutory rate		(2,243	)		(35.0	)		(5,966	)		(35.0	)
State taxes, net of federal benefit		(271	)		(4.2	)		(554	)		(3.3	)
Reversal of state tax provisions – finalization of audits								(2,340	)		(13.7	)
Increase in unrecognized tax benefits		1,500			23.4
Reversal of accrual for uncertain tax positions		(5,279	)		(82.4	)		(17,954	)		(105.3	)
Increase in deferred tax assets – net		(525	)		(8.2	)
Valuation allowance – recognized		4,089			63.8			7,027			41.2
Valuation allowance – reversed		(2,843	)		(44.3	)		(1,260	)		(7.4	)
Accrued interest on anticipated tax assessments		1,950			30.4			813			4.8
Other								(230	)		(1.3	)
Tax provision (benefit)		(3,622	)		(56.5	)		(20,464	)		(120.0	)

* Due to rounding, amounts may not add.

The Company currently operates in 20 states and is subject to various state tax jurisdictions. The Company estimates its state tax liability based upon the individual taxing authorities’ regulations, estimates of income by taxing jurisdiction and the Company’s ability to utilize certain tax-saving strategies. Due primarily to a change in the Company’s estimate of the allocation of income or loss, as the case may be, among the various taxing jurisdictions and changes in tax regulations and their impact on the Company’s tax strategies, the Company’s estimated rate for state income taxes was 6.5% and 5.0% for fiscal 2012 and 2011, respectively.

The Company recognizes in its tax benefit potential interest and penalties. Information as to the amounts recognized in its tax benefit, before reduction for applicable taxes and reversal of previously accrued interest and penalties, of potential interest and penalties in the three-month periods ended January 31, 2012 and 2011, and the amounts accrued for potential interest and penalties at January 31, 2012 and October 31, 2011 are set forth in the table below (amounts in thousands).

		September 30,
Recognized in statements of operations:
Three-month period ended January 31, 2012	$	3,000
Three-month period ended January 31, 2011	$	1,250
Accrued at:
January 31, 2012	$	29,500
October 31, 2011	$	29,200

The table below provides, for the periods indicated, a reconciliation of the change in the unrecognized tax benefits (amounts in thousands).

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Balance, beginning of period	$	104,669		$	160,446
Increase in benefit as a result of tax positions taken in prior years		4,500			1,250
Decrease in benefit as a result of resolution of uncertain tax positions		(4,000	)		(17,954	)
Decrease in benefit as a result of completion of tax audits		(4,122	)		(3,600	)
Balance, end of period	$	101,047		$	140,142

The Company’s unrecognized tax benefits are included in “Income taxes payable” on the Company’s Condensed Consolidated Balance Sheets. If these unrecognized tax benefits reverse in the future, they would have a beneficial impact on the Company’s effective tax rate at that time. During the next twelve months, it is reasonably possible that the amount of unrecognized tax benefits will change. The anticipated changes will be principally due to expiration of tax statutes, settlements with taxing jurisdictions, increases due to new tax positions taken and the accrual of estimated interest and penalties.

The Company is allowed to carry forward tax losses for 20 years and apply such tax losses to future taxable income to realize federal deferred tax assets. As of January 31, 2012, the Company estimates that it will have approximately $52.0 million of tax loss carryforwards, resulting from losses that it expects to recognize on its fiscal 2011 tax return. In addition, the Company expects to be able to reverse previously recognized valuation allowances against future tax provisions during any future period for which it reports book income before income taxes. The Company will continue to review its deferred tax assets in accordance with ASC 740.

At January 31, 2012 and October 31, 2011, the Company had recorded cumulative valuation allowances against its entire net deferred federal tax asset of $354.6 million and $353.4 million, respectively.

For state tax purposes, due to past and projected losses in certain jurisdictions where the Company does not have carryback potential and/or cannot sufficiently forecast future taxable income, the Company has recognized net cumulative valuation allowances against its state deferred tax assets of $74.0 million as of January 31, 2012. In 2011, the Company took steps to merge a number of entities to better align financial and tax reporting and to reduce administrative complexity going forward. Some of these mergers occurred in higher state tax jurisdictions creating additional state tax deferred assets of $28.9 million, offset entirely by an increase in the state tax valuation allowance. Future valuation allowances in these jurisdictions may continue to be recognized if the Company believes it will not generate sufficient future taxable income to utilize any future state deferred tax assets.

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Stock-Based Benefit Plans

3 Months Ended

Jan. 31, 2012

Stock-Based Benefit Plans [Abstract]

Stock-Based Benefit Plans

9. Stock-Based Benefit Plans

The Company grants stock options, restricted stock and various types of restricted stock units to its employees and its non-employee directors. Beginning in fiscal 2012, the Company changed the mix of stock-based compensation to its employees by reducing the number of stock options it grants and, in their place, issued non-performance based restricted stock units as a form of compensation. The Company also has an employee stock purchase plan that allows employees to purchase Company stock at a discount. In the three-month period ended January 31, 2012, the Company issued 941,678 shares under its stock-based benefit plans.

Information regarding the amount of total stock-based compensation expense recognized by the Company, for the periods indicated, is as follows (amounts in thousands):

		September 30,		September 30,
	2012		2011
Three months ended January 31:	$	5,626	$	5,373

At January 31, 2012 and October 31, 2011, the aggregate unamortized value of outstanding stock-based compensation awards was approximately $23.3 million and $12.7 million, respectively.

Due to the losses recognized by the Company over the past several years and its inability to forecast future pre-tax profits, the Company has not recognized a tax benefit on its stock-based compensation expense in the fiscal 2012 and 2011 periods.

Information about the Company’s more significant stock-based compensation programs is outlined below.

Stock Options:

The fair value of each option award is estimated on the date of grant using a lattice-based option valuation model that uses assumptions noted in the following table. The lattice-based option valuation model incorporates ranges of assumptions for inputs, which are disclosed in the table below. Expected volatilities were based on implied volatilities from traded options on the Company’s stock, historical volatility of the Company’s 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 range given below results 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 weighted-average assumptions and the fair value used for stock option grants in fiscal 2012 and 2011 were as follows:

	September 30,	September 30,
	2012	2011
Expected volatility	44.20% – 50.24%	45.38% – 49.46%
Weighted-average volatility	46.99%	47.73%
Risk-free interest rate	0.78% – 1.77%	1.64% – 3.09%
Expected life (years)	4.59 – 9.06	4.29 – 8.75
Dividends	none	none
Number of options issued (in thousands)
Weighted-average grant date fair value per share of options granted	$8.70	$7.94

Stock compensation expense, related to stock options, for the periods indicated, was as follows (amounts in thousands):

		September 30,		September 30,
	2012		2011
Three months ended January 31:	$	3,522	$	4,588

Performance-Based Restricted Stock Units:

In December 2011, the Executive Compensation Committee of the Company’s Board of Directors approved awards of performance-based restricted stock units (“Performance-Based RSUs”) relating to shares of the Company’s common stock to certain of its senior management. The use of Performance-Based RSUs replaced the use of stock price-based restricted stock units awarded in prior years. The Performance-Based RSUs are based on the attainment of certain performance metrics of the Company in fiscal 2012. The number of shares underlying the Performance-Based RSUs that will be issued to the recipients may range from 90% to 110% of the base award depending on actual performance metrics as compared to the target performance metrics. The Performance-Based RSUs vest over a four-year period; provided the recipients continue to be employed by the Company or serve on the board of directors of the Company (as applicable) 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 the Company’s common stock to be issued multiplied by the closing price of the Company’s common stock on the NYSE on the date the Performance-Based RSUs were awarded. The Company evaluates the performance-based metrics quarterly and estimates the number of shares underlying the RSUs that will be issued. Information regarding the issuance, valuation assumptions and amortization of the Company’s Performance-Based RSUs issued in fiscal 2012 is as follows:

		September 30,
	2012
Estimated number to be issued		350,000
Closing price of the Company’s common stock on date of issuance	$	20.50
Estimated aggregate fair value of Performance-Based RSUs issued (in thousands)	$	7,185
Performance-Based RSU expense recognized in the three months ended January 31, 2012 (in thousands):	$	936
Unamortized value of Performance-Based RSUs at January 31, 2012 (in thousands):	$	6,249

Stock Price-Based Restricted Stock Units:

In each of December 2010, 2009 and 2008, the Executive Compensation Committee of the Company’s Board of Directors approved awards of market performance-based restricted stock units (“Stock Price-Based RSUs”) relating to shares of the Company’s common stock. The Stock Price-Based RSUs will vest and the recipients will be entitled to receive the underlying shares if the average closing price of the Company’s common stock on the New York Stock Exchange (“NYSE”), measured over any 20 consecutive trading days ending on or prior to five years from date of issuance of the Stock Price-Based RSUs increases 30% or more over the closing price of the Company’s common stock on the NYSE on the date of issuance (“Target Price”), provided the recipients continue to be employed by the Company or serve on the board of directors of the Company (as applicable) as specified in the award document. The Company determined the aggregate value of the Stock Price-Based RSUs using a lattice-based option pricing model.

Information regarding the amortization of the Company’s Stock Price-Based RSUs, for the periods indicated, is as follows (amounts in thousands):

		September 30,
Three months ended January 31, 2012	$	848
Three months ended January 31, 2011	$	752

Information regarding the aggregate number of outstanding Stock Price-Based RSUs and aggregate unamortized value of the outstanding Stock Price-Based RSUs, as of the date indicated, is as follows:

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Aggregate outstanding Stock Price-Based RSUs		706,000		706,000
Cumulative unamortized value of Stock Price-Based RSUs (in thousands)	$	4,081	$	4,929

Non-Performance Based Restricted Stock Units:

In December 2011 and 2010, the Company issued restricted stock units (“RSUs”). These RSUs generally vest in annual installments over a four-year period. The value of the RSUs was determined to be equal to the number of shares of the Company’s common stock to be issued pursuant to the RSUs, multiplied by the closing price of the Company’s common stock on the NYSE on the date the RSUs were awarded. Information regarding these RSUs is as follows:

		September 30,		September 30,
	2012		2011
Number of RSUs issued		107,820		15,497
Closing price of the Company’s common stock on date of issuance	$	20.50	$	19.32
Aggregate fair value of RSUs issued (in thousands)	$	2,210	$	299

Information regarding the amortization of the Company’s RSUs, for the periods indicated, is as follows (amounts in thousands):

		September 30,		September 30,
	2012		2011
Three months ended January 31:	$	314	$	27

Information regarding the aggregate number of outstanding RSUs and aggregate unamortized value of the outstanding RSUs, as of the date indicated, is as follows:

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Aggregate outstanding RSUs		138,814		30,994
Cumulative unamortized value of RSUs (in thousands)	$	2,275	$	379

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Accumulated Other Comprehensive Loss and Comprehensive (Loss) Income

3 Months Ended

Jan. 31, 2012

Accumulated Other Comprehensive Loss and Total Comprehensive (Loss) Income [Abstract]

Accumulated Other Comprehensive Loss and Total Comprehensive (Loss) Income

11. Accumulated Other Comprehensive Loss and Total Comprehensive (Loss) Income

Accumulated other comprehensive loss at January 31, 2012 and January 31, 2011 was primarily related to employee retirement plans.

The table below provides, for the periods indicated, the components of total comprehensive (loss) income (amounts in thousands):

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Net (loss) income as reported	$	(2,786	)	$	3,417
Changes in pension liability		(109	)		173
Change in fair value of available-for-sale securities		243			64
Unrealized loss on derivative held by equity investee		(795	)
Comprehensive (loss) income	$	(3,447	)	$	3,654

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Stock-Based Benefit Plans (Details 3) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Stock Price-Based RSUs issued
RSU expense recognized	$ 5,626	$ 5,373
Stock Price Based Restricted Stock Units [Member]
Stock Price-Based RSUs issued
RSU expense recognized	$ 848	$ 752

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Supplemental Guarantor Information (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2012	Oct. 31, 2011	Jan. 31, 2011	Oct. 31, 2010
ASSETS
Cash and cash equivalents	$ 575,694	$ 906,340	$ 886,599	$ 1,039,060
Marketable securities	143,729	233,572
Restricted cash	48,241	19,760
Inventory	3,655,100	3,416,723
Property, construction and office equipment, net	101,499	99,712
Receivables, prepaid expenses and other assets	98,191	105,576
Mortgage loans receivable	36,911	63,175
Customer deposits held in escrow	25,089	14,859
Investments in and advances to unconsolidated entities	193,626	126,355
Investments in non-performing loan portfolios and foreclosed real estate	96,822	69,174
Investments in and advances to consolidated entities	0	0
Total assets	4,974,902	5,055,246
Liabilities:
Loans payable	93,279	106,556
Senior notes	1,491,442	1,490,972
Mortgage company warehouse loan	31,864	57,409
Customer deposits	97,334	83,824
Accounts payable	105,311	96,817
Accrued expenses	451,414	521,051
Income taxes payable	100,276	106,066
Total liabilities	2,370,920	2,462,695
Stockholders' equity:
Common stock	1,687	1,687
Additional paid-in capital	399,743	400,382
Retained earnings	2,231,465	2,234,251
Treasury stock, at cost --2,021 shares and 2,946 shares at January 31, 2012 and October 31, 2011, respectively	(31,531)	(47,065)
Accumulated other comprehensive loss	(3,563)	(2,902)
Total stockholders' equity	2,597,801	2,586,353
Noncontrolling interest	6,181	6,198
Total equity	2,603,982	2,592,551
Total liabilities and stockholders' equity	4,974,902	5,055,246
Toll Brothers Inc. [Member]
ASSETS
Cash and cash equivalents	0	0	0	0
Marketable securities	0	0
Restricted cash	28,307	0
Inventory	0	0
Property, construction and office equipment, net	0	0
Receivables, prepaid expenses and other assets	0	0
Mortgage loans receivable	0	0
Customer deposits held in escrow	0	0
Investments in and advances to unconsolidated entities	0	0
Investments in non-performing loan portfolios and foreclosed real estate	0	0
Investments in and advances to consolidated entities	2,671,770	2,694,419
Total assets	2,700,077	2,694,419
Liabilities:
Loans payable	0	0
Senior notes	0	0
Mortgage company warehouse loan	0	0
Customer deposits	0	0
Accounts payable	0	0
Accrued expenses	0	0
Income taxes payable	102,276	108,066
Total liabilities	102,276	108,066
Stockholders' equity:
Common stock	1,687	1,687
Additional paid-in capital	399,743	400,382
Retained earnings	2,231,465	2,234,251
Treasury stock, at cost --2,021 shares and 2,946 shares at January 31, 2012 and October 31, 2011, respectively	(31,531)	(47,065)
Accumulated other comprehensive loss	(3,563)	(2,902)
Total stockholders' equity	2,597,801	2,586,353
Noncontrolling interest	0	0
Total equity	2,597,801	2,586,353
Total liabilities and stockholders' equity	2,700,077	2,694,419
Subsidiary Issuer [Member]
ASSETS
Cash and cash equivalents	0	0	0	0
Marketable securities	0	0
Restricted cash	0	0
Inventory	0	0
Property, construction and office equipment, net	0	0
Receivables, prepaid expenses and other assets	6,444	6,768
Mortgage loans receivable	0	0
Customer deposits held in escrow	0	0
Investments in and advances to unconsolidated entities	0	0
Investments in non-performing loan portfolios and foreclosed real estate	0	0
Investments in and advances to consolidated entities	1,513,343	1,508,550
Total assets	1,519,787	1,515,318
Liabilities:
Loans payable	0	0
Senior notes	1,491,442	1,490,972
Mortgage company warehouse loan	0	0
Customer deposits	0	0
Accounts payable	0	0
Accrued expenses	28,345	24,346
Income taxes payable	0	0
Total liabilities	1,519,787	1,515,318
Stockholders' equity:
Common stock	0	0
Additional paid-in capital	0	0
Retained earnings	0	0
Treasury stock, at cost --2,021 shares and 2,946 shares at January 31, 2012 and October 31, 2011, respectively	0	0
Accumulated other comprehensive loss	0	0
Total stockholders' equity	0	0
Noncontrolling interest	0	0
Total equity	0	0
Total liabilities and stockholders' equity	1,519,787	1,515,318
Guarantor Subsidiaries [Member]
ASSETS
Cash and cash equivalents	441,916	775,300	777,903	930,387
Marketable securities	143,729	233,572
Restricted cash	18,434	19,084
Inventory	3,496,927	2,911,211
Property, construction and office equipment, net	98,408	77,001
Receivables, prepaid expenses and other assets	75,622	74,980
Mortgage loans receivable	0	0
Customer deposits held in escrow	23,309	10,682
Investments in and advances to unconsolidated entities	77,473	86,481
Investments in non-performing loan portfolios and foreclosed real estate	0	0
Investments in and advances to consolidated entities	(943,024)	(727,258)
Total assets	3,432,794	3,461,053
Liabilities:
Loans payable	92,079	61,994
Senior notes	0	0
Mortgage company warehouse loan	0	0
Customer deposits	93,356	71,388
Accounts payable	103,491	96,645
Accrued expenses	306,994	320,021
Income taxes payable	0	0
Total liabilities	595,920	550,048
Stockholders' equity:
Common stock	3,054	3,054
Additional paid-in capital	1,366	1,366
Retained earnings	2,836,017	2,909,487
Treasury stock, at cost --2,021 shares and 2,946 shares at January 31, 2012 and October 31, 2011, respectively	0	0
Accumulated other comprehensive loss	(3,563)	(2,902)
Total stockholders' equity	2,836,874	2,911,005
Noncontrolling interest	0	0
Total equity	2,836,874	2,911,005
Total liabilities and stockholders' equity	3,432,794	3,461,053
Non-Guarantor Subsidiaries [Member]
ASSETS
Cash and cash equivalents	133,778	131,040	108,696	108,673
Marketable securities	0	0
Restricted cash	1,500	676
Inventory	158,173	505,512
Property, construction and office equipment, net	3,091	22,711
Receivables, prepaid expenses and other assets	17,827	26,067
Mortgage loans receivable	36,911	63,175
Customer deposits held in escrow	1,780	4,177
Investments in and advances to unconsolidated entities	116,153	39,874
Investments in non-performing loan portfolios and foreclosed real estate	96,822	69,174
Investments in and advances to consolidated entities	(236,201)	(467,395)
Total assets	329,834	395,011
Liabilities:
Loans payable	1,200	44,562
Senior notes	0	0
Mortgage company warehouse loan	31,864	57,409
Customer deposits	3,978	12,436
Accounts payable	1,820	172
Accrued expenses	117,857	178,965
Income taxes payable	(2,000)	(2,000)
Total liabilities	154,719	291,544
Stockholders' equity:
Common stock	2,003	2,003
Additional paid-in capital	2,734	2,734
Retained earnings	164,197	92,532
Treasury stock, at cost --2,021 shares and 2,946 shares at January 31, 2012 and October 31, 2011, respectively	0	0
Accumulated other comprehensive loss	0	0
Total stockholders' equity	168,934	97,269
Noncontrolling interest	6,181	6,198
Total equity	175,115	103,467
Total liabilities and stockholders' equity	329,834	395,011
Eliminations [Member]
ASSETS
Cash and cash equivalents	0	0	0	0
Marketable securities	0	0
Restricted cash	0	0
Inventory	0	0
Property, construction and office equipment, net	0	0
Receivables, prepaid expenses and other assets	(1,702)	(2,239)
Mortgage loans receivable	0	0
Customer deposits held in escrow	0	0
Investments in and advances to unconsolidated entities	0	0
Investments in non-performing loan portfolios and foreclosed real estate	0	0
Investments in and advances to consolidated entities	(3,005,888)	(3,008,316)
Total assets	(3,007,590)	(3,010,555)
Liabilities:
Loans payable	0	0
Senior notes	0	0
Mortgage company warehouse loan	0	0
Customer deposits	0	0
Accounts payable	0	0
Accrued expenses	(1,782)	(2,281)
Income taxes payable	0	0
Total liabilities	(1,782)	(2,281)
Stockholders' equity:
Common stock	(5,057)	(5,057)
Additional paid-in capital	(4,100)	(4,100)
Retained earnings	(3,000,214)	(3,002,019)
Treasury stock, at cost --2,021 shares and 2,946 shares at January 31, 2012 and October 31, 2011, respectively	0	0
Accumulated other comprehensive loss	3,563	2,902
Total stockholders' equity	(3,005,808)	(3,008,274)
Noncontrolling interest	0	0
Total equity	(3,005,808)	(3,008,274)
Total liabilities and stockholders' equity	$ (3,007,590)	$ (3,010,555)

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Stock-Based Benefit Plans (Details 5) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		12 Months Ended		3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011	Oct. 31, 2012 Non-Performance Based Restricted Stock Units [Member]	Oct. 31, 2011 Non-Performance Based Restricted Stock Units [Member]	Jan. 31, 2012 Non-Performance Based RSU expense recognized [Member]	Jan. 31, 2011 Non-Performance Based RSU expense recognized [Member]
Non-Performance Based Restricted Stock Units
Issuance of restricted stock and stock units, shares			107,820	15,497
Closing price of the Company's common stock on date of issuance			$ 20.50	$ 19.32
Aggregate fair value of RSUs issued			$ 2,210	$ 299
RSU Expense Recognized
RSU expense recognized	$ 5,626	$ 5,373			$ 314	$ 27

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Stock-Based Benefit Plans (Details 2) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended			12 Months Ended
	Jan. 31, 2012	Jan. 31, 2011	Jan. 31, 2012 Performance Based Restricted Stock Units [Member]	Oct. 31, 2012 Performance Based Restricted Stock Units [Member]
Performance-Based Restricted Stock Units
Issuance of restricted stock and stock units, shares				350,000
Closing price of the Company's common stock on date of issuance				$ 20.50
Estimated aggregate fair value of performance-based RSUs issued (in thousands)				$ 7,185
RSU expense recognized	5,626	5,373	936
Unamortized value of performance-based RSUs at January 31, 2012			$ 6,249

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Accumulated Other Comprehensive Loss and Comprehensive (Loss) Income (Tables)

3 Months Ended

Jan. 31, 2012

Accumulated Other Comprehensive Loss and Total Comprehensive (Loss) Income [Abstract]

Components of total comprehensive income (loss)

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Net (loss) income as reported	$	(2,786	)	$	3,417
Changes in pension liability		(109	)		173
Change in fair value of available-for-sale securities		243			64
Unrealized loss on derivative held by equity investee		(795	)
Comprehensive (loss) income	$	(3,447	)	$	3,654

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Investments in and Advances to Unconsolidated Entities (Details Textual) (USD $)	3 Months Ended							3 Months Ended			3 Months Ended			3 Months Ended			24 Months Ended	51 Months Ended	3 Months Ended			3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011	Nov. 30, 2011	Oct. 31, 2011	Jan. 31, 2012 Structured Asset Joint Venture [Member]	Oct. 31, 2011 Structured Asset Joint Venture [Member]	Jul. 31, 2010 Structured Asset Joint Venture [Member]	Jan. 31, 2012 PASERS [Member]	Jan. 31, 2012 Toll Brothers Inc. [Member]	Oct. 31, 2011 Toll Brothers Inc. [Member]	Jan. 31, 2011 Development Joint Venture [Member]	Jan. 31, 2012 Development Joint Venture [Member]	Oct. 31, 2011 Development Joint Venture [Member]	Oct. 31, 2011 South Edge LLC [Member]	Apr. 30, 2011 South Edge LLC [Member]	Jan. 31, 2011 South Edge LLC [Member]	Oct. 31, 2009 South Edge LLC [Member]	Jan. 31, 2012 South Edge LLC [Member]	Jan. 31, 2012 Condominium Joint Ventures [Member]	Jan. 31, 2011 Condominium Joint Ventures [Member]	Dec. 31, 2011 Condominium Joint Ventures [Member]	Jan. 31, 2012 Planned Community Joint Venture [Member]	Oct. 31, 2011 Planned Community Joint Venture [Member]	Apr. 30, 2011 Planned Community Joint Venture [Member]	Jan. 31, 2012 Trust I [Member]	Jan. 31, 2011 Trust I [Member]	Jan. 31, 2012 Trust II [Member]	Jan. 31, 2012 Unconsolidated Entities [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investment in or advanced to development Joint Ventures, net of Impairment charges												$ 8,600,000
Impairment Charges	0	20,000,000									20,000,000				9,600,000	20,000,000			0	0			5,200,000	10,000,000
Cumulative impairment recognized in Investment																	70,300,000	96,000,000
Investments in joint ventures	193,626,000			126,355,000	34,199,000	34,651,000	29,100,000		0	0		8,592,000	17,098,000						119,400,000		76,700,000	30,700,000			300,000		400,000
Contribution of additional funds if required																			37,500,000			8,300,000
Structured Asset Joint Venture Description						It is a 20% participant with two unrelated parties to purchase a 40% interest in an entity that owns and controls a portfolio of loans and real estate
Funding Commitments related to one Development Joint Venture												3,500,000
Owned by an affiliate of PASERS								50.00%
Percentage ownership held by company									50.00%
Development finance and management services recognized during period																									500,000	500,000
Aggregate exposure with respect to its estimated obligations	2,609,000			60,130,000																								2,600,000
Cumulative impairment charges in connection with joint ventures																			63,900,000			15,200,000
Payment for legal settlement	63,200,000		57,600,000
Reverse impairment charge														3,900,000
Investments in and Advances to Unconsolidated Entities Additional (Textual) [Abstract]
Restricted cash held in defeasance account used to repay debt	$ 165,500,000			$ 152,600,000

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Legal Proceedings

3 Months Ended

Jan. 31, 2012

Legal Proceedings, Commitments and Contingencies [Abstract]

Legal Proceedings

16. Legal Proceedings

The Company is involved in various claims and litigation arising principally in the ordinary course of business.

In January 2006, the Company received a request for information pursuant to Section 308 of the Clean Water Act from Region 3 of the U.S. Environmental Protection Agency (“EPA”) concerning storm water discharge practices in connection with its homebuilding projects in the states that comprise EPA Region 3. The Company provided information to the EPA pursuant to the request. The U.S. Department of Justice (“DOJ”) has assumed responsibility for the oversight of this matter and has alleged that the Company has violated regulatory requirements applicable to storm water discharges and that it may seek injunctive relief and/or civil penalties. The Company is presently engaged in settlement discussions with representatives from the DOJ and the EPA.

On November 4, 2008, a shareholder derivative action was filed in the Chancery Court of Delaware by Milton Pfeiffer against Robert I. Toll, Zvi Barzilay, Joel H. Rassman, Bruce E. Toll, Paul E. Shapiro, Robert S. Blank, Carl B. Marbach, and Richard J. Braemer. The plaintiff purports to bring his claims on behalf of Toll Brothers, Inc. and alleges that the director and officer defendants breached their fiduciary duties to the Company and its stockholders with respect to their sales of shares of the Company’s common stock during the period beginning on December 9, 2004 and ending on November 8, 2005. The plaintiff alleges that such stock sales were made while in possession of non-public, material information about the Company. The plaintiff seeks contribution and indemnification from the individual director and officer defendants for costs and expenses incurred by us in connection with defending a now-settled related class action. In addition, again purportedly on the Company’s behalf, the plaintiff seeks disgorgement of the defendants’ profits from their stock sales.

On March 4, 2009, a second shareholder derivative action was brought by Oliverio Martinez in the U.S. District Court for the Eastern District of Pennsylvania. The case was brought against the eleven then-current members of the Company’s board of directors and its Chief Accounting Officer. This complaint alleges breaches of fiduciary duty, waste of corporate assets, and unjust enrichment during the period from February 2005 to November 2006. The complaint further alleges that certain of the defendants sold the Company’s stock during this period while in possession of allegedly non-public, material information and plaintiff seeks disgorgement of profits from these sales. The complaint also asserts a claim for equitable indemnity for costs and expenses incurred by the Company in connection with a now-settled related class action lawsuit.

On April 1, 2009, a third shareholder derivative action was filed by William Hall, also in the U.S. District Court for the Eastern District of Pennsylvania, against the eleven then-current members of the Company’s board of directors and its Chief Accounting Officer. This complaint is identical to the previous shareholder complaint filed in Philadelphia and, on July 14, 2009, the two cases were consolidated. On April 30, 2010, the plaintiffs filed an amended consolidated complaint.

The Company’s Certificate of Incorporation and Bylaws provide for indemnification of its directors and officers. The Company has also entered into individual indemnification agreements with each of its directors.

Due to the high degree of judgment required in determining the amount of potential loss related to the various claims and litigation in which the Company is involved, including those noted above, and the inherent variability in predicting future settlements and judicial decisions, the Company cannot estimate a range of reasonably possible losses in excess of its accruals for these matters. The Company believes that adequate provision for resolution of all claims and pending litigation has been made for probable losses and the disposition of these matters will not have a material adverse effect on the Company’s results of operations and liquidity or on its financial condition.

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Significant Accounting Policies (Policies)

3 Months Ended

Jan. 31, 2012

Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements include the accounts of Toll Brothers, Inc. (the “Company”), a Delaware corporation, and those majority-owned subsidiaries it controls. 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 the Company has effective control of the entity, in which case the entity would be consolidated.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. The October 31, 2011 balance sheet amounts and disclosures included herein have been derived from the Company’s October 31, 2011 audited financial statements. Since the accompanying condensed consolidated financial statements do not include all the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements, the Company suggests that they be read in conjunction with the consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended October 31, 2011. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary to present fairly the Company’s financial position as of January 31, 2012, the results of its operations for the three-month periods ended January 31, 2012 and 2011, and its cash flows for the three-month periods ended January 31, 2012 and 2011. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year.

Inventory

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 re-opens. While the community remains closed, carrying costs such as real estate taxes are expensed as incurred.

The Company capitalizes certain interest costs to qualified inventory during the development and construction period of its communities in accordance with ASC 835-20, “Capitalization of Interest” (“ASC 835-20”). Capitalized interest is charged to cost of revenues when the related inventory is delivered. Interest incurred on homebuilding indebtedness in excess of qualified inventory, as defined in ASC 835-20, is charged directly to operations in the period incurred.

Once a parcel of land has been approved for development and the Company opens one of its typical communities, it may take four 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. The Company’s master planned communities, consisting of several smaller communities, may take up to ten years or more to complete. Because the Company’s inventory is considered a long-lived asset under GAAP, the Company is required, under ASC 360, to regularly review the carrying value of each community and write down the value of those communities for which it believes the values have been impaired.

Current Communities: When the profitability of a current 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 revenues in the period in which the impairment is determined. In estimating the future undiscounted cash flow of a community, the Company uses various estimates such as: (a) 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 the Company or by other builders; (b) the expected sales prices and sales incentives to be offered in a community; (c) 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; (d) 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 (e) 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: The Company evaluates all land held for future communities or future sections of current communities, whether owned or under contract, to determine whether or not it expects to proceed with the development of the land as originally contemplated. This evaluation encompasses the same types of estimates used for current 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 will 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, the Company decides (a) as to land under contract to be purchased, whether the contract will likely be terminated or renegotiated, and (b) as to land owned, whether the land will likely be developed as contemplated or in an alternative manner, or should be sold. The Company then further determines whether costs that have been capitalized to the community are recoverable or should be written off. The write-off is charged to 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 the Company at the time such estimates are made and its expectations of future operations and economic conditions. Should the estimates or expectations used in determining estimated fair value deteriorate in the future, the Company may be required to recognize additional impairment charges and write-offs related to current and future communities.

Variable Interest Entities: The Company has a significant number of land purchase contracts and several investments in unconsolidated entities which it evaluates in accordance with ASC 810, “Consolidation” (“ASC 810”). The Company analyzes its land purchase contracts and the unconsolidated entities in which it has an investment to determine whether the land sellers and unconsolidated entities are variable interest entities (“VIEs”) and, if so, whether the Company is the primary beneficiary. If the Company is determined to be the primary beneficiary of a VIE, it must consolidate the VIE. A VIE is an entity with insufficient equity investment or in which the equity investors lack some of the characteristics of a controlling financial interest. In determining whether it is the primary beneficiary, the Company considers, among other things, whether it has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, including, but not limited to, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE. The Company also considers whether it has the obligation to absorb losses of or the right to receive benefits from the VIE.

Fair Value Disclosures

Fair Value Disclosures

The Company uses 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 which 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.

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Investments in and Advances to Unconsolidated Entities (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2012	Oct. 31, 2011	Jul. 31, 2010
Condensed Balance Sheets:
Cash and cash equivalents	$ 62,965	$ 85,359
Inventory	493,354	394,079
Non-performing loan portfolio	288,130	295,044
Rental properties	176,979	178,339
Real estate owned ("REO")	240,660	231,959
Other assets	261,093	339,214
Total assets	1,523,181	1,523,994
Debt	616,435	888,145
Other liabilities	35,387	18,906
Member's equity	624,617	367,277
Non-controlling interest	246,742	249,666
Total liabilities and equity	1,523,181	1,523,994
Investments in and advances to unconsolidated entities	193,626	126,355
Development Joint Venture [Member]
Condensed Balance Sheets:
Cash and cash equivalents	13,067	14,190
Inventory	191,031	218,339
Non-performing loan portfolio	0	0
Rental properties	0	0
Real estate owned ("REO")	0	0
Other assets	21,047	150,316
Total assets	225,145	382,845
Debt	71,444	327,856
Other liabilities	21,127	5,352
Member's equity	132,574	49,637
Non-controlling interest	0	0
Total liabilities and equity	225,145	382,845
Investments in and advances to unconsolidated entities	8,592	17,098
Home Building Joint Ventures [Member]
Condensed Balance Sheets:
Cash and cash equivalents	9,282	10,663
Inventory	296,781	170,239
Non-performing loan portfolio	0	0
Rental properties	0	0
Real estate owned ("REO")	0	0
Other assets	58,989	20,080
Total assets	365,052	200,982
Debt	35,363	50,515
Other liabilities	9,363	9,745
Member's equity	320,326	140,722
Non-controlling interest	0	0
Total liabilities and equity	365,052	200,982
Investments in and advances to unconsolidated entities	150,135	72,734
Toll Brothers Realty Trust I and II [Member]
Condensed Balance Sheets:
Cash and cash equivalents	10,620	11,726
Inventory	5,542	5,501
Non-performing loan portfolio	0	0
Rental properties	176,979	178,339
Real estate owned ("REO")	1,087	1,087
Other assets	9,033	9,675
Total assets	203,261	206,328
Debt	198,066	198,927
Other liabilities	4,473	3,427
Member's equity	722	3,974
Non-controlling interest	0	0
Total liabilities and equity	203,261	206,328
Investments in and advances to unconsolidated entities	700	1,872
Structured Asset Joint Venture [Member]
Condensed Balance Sheets:
Cash and cash equivalents	29,996	48,780
Inventory	0	0
Non-performing loan portfolio	288,130	295,044
Rental properties	0	0
Real estate owned ("REO")	239,573	230,872
Other assets	172,024	159,143
Total assets	729,723	733,839
Debt	311,562	310,847
Other liabilities	424	382
Member's equity	170,995	172,944
Non-controlling interest	246,742	249,666
Total liabilities and equity	729,723	733,839
Investments in and advances to unconsolidated entities	$ 34,199	$ 34,651	$ 29,100

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Supplemental Disclosure to Statements of Cash Flows (Tables)

3 Months Ended

Jan. 31, 2012

Supplemental Disclosure to Statements of Cash Flows [Abstract]

Supplemental disclosures to the statements of cash flows

		September 30,			September 30,
	2012			2011
Cash flow information:
Interest paid, net of amount capitalized				$	587
Interest capitalized, net of amount paid	$	766
Income tax payment	$	2,093
Income tax refunds				$	381
Non-cash activity:
Cost of inventory acquired through seller financing municipal bonds or recorded due to VIE criteria, net	$	431		$	21,584
Increase in SERP benefits	$	310
Miscellaneous (decreases) increases to inventory	$	(75	)	$	2,137
Reclassification of inventory to property, construction and office equipment				$	20,005
(Increase) reduction of investments in unconsolidated entities due to increase/reduction in letters of credit or accrued liabilities	$	(26	)	$	19,106
Transfer of inventory to investment in non-performing loan portfolios and foreclosed real estate	$	802
Transfer of inventory to investment in unconsolidated entities	$	5,793
Unrealized loss on derivative held by equity investee	$	795
Miscellaneous (decreases) increases to investments in unconsolidated entities	$	(18	)	$	540
Acquisition of a Business:
Fair value of assets purchased	$	149,959
Liabilities assumed	$	5,213
Cash paid	$	144,746

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Cash flow used in operating activities:
Net (loss) income	$ (2,786)	$ 3,417
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	5,229	4,387
Stock-based compensation	5,626	5,373
Impairment of investment in unconsolidated entities	0	20,000
Income from unconsolidated entities	(6,687)	(8,998)
Distributions of earnings from unconsolidated entities	872	2,793
Income from non-performing loan portfolios and foreclosed real estate	(4,138)
Deferred tax benefit	(1,246)	(6,589)
Deferred tax valuation allowances	1,246	6,589
Inventory impairments and write-offs	8,120	5,126
Change in fair value of mortgage loans receivable and derivative instruments	346	714
Gain on marketable securities	(39)
Changes in operating assets and liabilities
Increase in Inventory	(108,468)	(120,875)
Origination of mortgage loans	(120,662)	(182,659)
Sale of mortgage loans	146,895	233,891
(Increase) decrease in restricted cash	(28,481)	8,498
Decrease in receivables, prepaid expenses and other assets	11,929	7,937
Increase in customer deposits	3,230	2,277
Decrease in accounts payable and accrued expenses	(67,127)	(38,987)
Decrease in income taxes payable	(5,790)	(20,082)
Net cash used in operating activities	(161,931)	(77,188)
Cash flow used in investing activities:
Purchase of property and equipment - net	(3,540)	(4,281)
Purchase of marketable securities	0	(119,238)
Sale and redemption of marketable securities	88,217	102,500
Investment in and advances to unconsolidated entities	(71,784)	0
Return of investments in unconsolidated entities	15,333	6,305
Investment in non-performing loan portfolios and foreclosed real estate	(26,410)
Return of investments in non-performing loan portfolios and foreclosed real estate	3,702
Acquisition of a business	(144,746)	0
Net cash used in investing activities	(139,228)	(14,714)
Cash flow used in financing activities:
Proceeds from loans payable	199,139	266,035
Principal payments of loans payable	(237,896)	(329,754)
Proceeds from stock-based benefit plans	9,334	3,323
Purchase of treasury stock	(64)	(163)
Net cash used in financing activities	(29,487)	(60,559)
Net decrease in cash and cash equivalents	(330,646)	(152,461)
Cash and Cash Equivalents, at Carrying Value	$ 575,694	$ 886,599

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Supplemental Guarantor Information (Details Textual) (USD $) In Millions, unless otherwise specified	Jan. 31, 2012 Senior Notes Due 2012 [Member]	Nov. 22, 2002 Senior Notes Due 2012 [Member]	Jan. 31, 2012 Senior Notes Due 2013 [Member]	Sep. 03, 2003 Senior Notes Due 2013 [Member]	Jan. 31, 2012 Senior Notes Due 2014 [Member]	Mar. 16, 2004 Senior Notes Due 2014 [Member]	Jun. 02, 2005 Senior Notes Due 2015 [Member]	Apr. 13, 2009 Senior Notes Due 2017 [Member]	Sep. 22, 2009 Senior Notes Due 2019 [Member]	Jan. 31, 2012 Subsidiary Issuer [Member]	Jan. 31, 2012 Guarantor Subsidiaries [Member]
Supplemental Guarantor Information (Textual) [Abstract]
Subsidiary of the Company, Toll Brothers Finance Corp.										100.00%	100.00%
Issued Senior Notes		$ 300		$ 250		$ 300	$ 300	$ 400	$ 250
Interest rate on notes	6.875%	6.875%	5.95%	5.95%	4.95%	4.95%	5.15%	8.91%	6.75%
Redemption of Senior Notes	$ 160.2		$ 108.4		$ 32.0

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Investments in Non-Performing Loan Portfolios and Foreclosed Real Estate

3 Months Ended

Jan. 31, 2012

Investments in Non-Performing Loan Portfolios and Foreclosed Real Estate [Abstract]

Investments in Non-Performing Loan Portfolios and Foreclosed Real Estate

5. Investments in Non-Performing Loan Portfolios and Foreclosed Real Estate

In December 2011, Gibraltar acquired a portfolio of non-performing loans consisting of 11 loans with an unpaid principal balance of approximately $51.4 million. The portfolio includes non-performing loans secured primarily by commercial land and buildings in various stages of completion.

The following table summarizes for the portfolios acquired the accretable yield and the nonaccretable difference on our investments in those non-performing loans portfolios as of their acquisition dates (amounts in thousands).

		September 30,
	Three months ended January 31, 2012
Contractually required payments, including interest	$	52,524
Nonaccretable difference		(5,125	)
Cash flows expected to be collected		47,399
Accretable difference		(20,514	)
Non-performing loans carrying amount	$	26,885

The Company’s investment in non-performing loan portfolios consisted of the following as of the dates indicated (amounts in thousands):

		September 30,			September 30,
	January 31, 2012			October 31, 2011
Unpaid principal balance	$	216,620		$	171,559
Discount on acquired loans		(126,286	)		(108,325	)
Carrying value	$	90,334		$	63,234

The Company’s earnings from the portfolios and management fees earned are included in interest and other income in its condensed consolidated statements of operations. In the three-month period ended January 31, 2012, the Company recognized $2.1 million of earnings from its investments in the loan portfolios.

The activity in the accretable yield for the Company’s investment in the non-performing loan portfolios for the three months ended January 31, 2012 was as follows (amounts in thousands):

		September 30,
Balance at October 31, 2011	$	42,326
Additions		20,514
Accretion		(3,228	)
Reductions from foreclosures and other dispositions		(1,648	)
Other		(120	)
Balance at January 31, 2012	$	57,844

The additions to accretable yield and the accretion of interest income are based on various estimates regarding loan performance and the value of the underlying real estate securing the loans. As the Company continues to obtain updated information regarding the loans and the underlying collateral, the accretable yield may change. Therefore, the amount of accretable income recorded in the three month period ended January 31, 2012 is not necessarily indicative of expected future results.

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Income Taxes (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011	Oct. 31, 2011
Tax Benefits potential Interest and Penalties
Tax Benefits potential Interest and Penalties	$ 3,000	$ 1,250
Tax Benefit Amount Accrued for potential Interest and Penalties
Tax Benefit Amount Accrued for potential Interest and Penalties	$ 29,500		$ 29,200

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Geographic Segments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011	Oct. 31, 2011
Revenues
Revenues	$ 321,955	$ 334,116
(Loss) income before income taxes
(Loss) income before income taxes	(6,408)	(17,047)
Total assets
Total assets	4,974,902		5,055,246
North [Member]
Revenues
Revenues	75,580	82,497
(Loss) income before income taxes
(Loss) income before income taxes	1,201	7,068
Total assets
Total assets	1,102,276		1,060,215
Mid-Atlantic [Member]
Revenues
Revenues	100,799	103,815
(Loss) income before income taxes
(Loss) income before income taxes	10,642	8,088
Total assets
Total assets	1,305,586		1,235,847
South [Member]
Revenues
Revenues	76,466	61,903
(Loss) income before income taxes
(Loss) income before income taxes	(2,077)	(1,348)
Total assets
Total assets	771,461		760,097
West [Member]
Revenues
Revenues	69,110	85,901
(Loss) income before income taxes
(Loss) income before income taxes	5,603	(15,240)
Total assets
Total assets	785,085		650,844
Corporate and other [Member]
(Loss) income before income taxes
(Loss) income before income taxes	(21,777)	(15,615)
Total assets
Total assets	$ 1,010,494		$ 1,348,243

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Accumulated Other Comprehensive Loss and Comprehensive (Loss) Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Accumulated Other Comprehensive Loss and Total Comprehensive Income (Loss)
Net (loss) income as reported	$ (2,786)	$ 3,417
Changes in pension liability	(109)	173
Change in fair value of available-for-sale securities	243	64
Unrealized loss on derivative held by equity investee	(795)
Comprehensive (loss) income	$ (3,447)	$ 3,654

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Inventory (Tables)

3 Months Ended

Jan. 31, 2012

Inventory [Abstract]

Inventory

		September 30,		September 30,
	January 31,		October 31,
	2012		2011
Land controlled for future communities	$	43,215	$	46,581
Land owned for future communities		1,068,747		979,145
Operating communities		2,543,138		2,390,997
	$	3,655,100	$	3,416,723

Temporarily Closed communities

		September 30,		September 30,
	January 31,		October 31,
	2012		2011
Land owned for future communities:
Number of communities		44		43
Carrying value (in thousands)	$	245,025	$	256,468
Operating communities:
Number of communities		6		2
Carrying value (in thousands)	$	49,723	$	11,076

Inventory impairment charges and expensing of costs that it is believed not to be recoverable

		September 30,		September 30,
	Three months ended January 31,
	2012		2011
Charge (recovery):
Land controlled for future communities	$	777	$	(349	)
Land owned for future communities		918
Operating communities		6,425		5,475
	$	8,120	$	5,126

Interest incurred, capitalized and expensed

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Interest capitalized, beginning of period	$	298,757		$	267,278
Interest incurred		28,899			29,716
Interest expensed to cost of revenues		(16,321	)		(18,082	)
Interest directly expensed to operations					(1,112	)
Write-off against other income					(70	)
Interest reclassified to property, construction and office equipment					(3,000	)
Interest capitalized, end of period	$	311,335		$	274,730

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Fair Value Disclosures (Details 2) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2012	Oct. 31, 2011
Summary of amortized cost gross unrealized holding gains and losses
Amortized cost	$ 143,766	$ 233,852
Gross unrealized holding gains	46	28
Gross unrealized holding losses	(83)	(308)
Fair value	$ 143,729	$ 233,572

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Interest and Other Income (Tables)

3 Months Ended

Jan. 31, 2012

Interest and Other Income [Abstract]

Revenues and expenses of non-core ancillary businesses

		September 30,		September 30,
	Three months ended January 31,
	2012		2011
Revenue	$	17,311	$	13,823
Expense	$	14,089	$	13,266

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Interest and Other Income

3 Months Ended

Jan. 31, 2012

Interest and Other Income [Abstract]

Interest and Other Income

15. Interest and Other Income

Interest and other income includes the activity of the Company’s non-core ancillary businesses which include its mortgage, title, landscaping, security monitoring, structured loan and non-performing portfolio group and golf course and country club operations. The table below provides, for the periods indicated, revenues and expenses for the Company’s non-core ancillary businesses (amounts in thousands).

		September 30,		September 30,
	Three months ended January 31,
	2012		2011
Revenue	$	17,311	$	13,823
Expense	$	14,089	$	13,266