Information on Operating Segments

9 Months Ended

Jul. 31, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Information on Operating Segments

We operate in two reportable segments: traditional home building and urban infill. We build and sell homes in traditional home building markets consisting of detached and attached homes in luxury residential communities located in affluent suburban markets that cater to move-up, empty-nester, active-adult, age-qualified, and second-home buyers in the United States (“Traditional Home Building”). We also build and sell homes in urban infill markets through Toll Brothers City Living^® (“City Living”).

We have determined that our Traditional Home Building operations operate in four geographic segments: North, Mid-Atlantic, South, and West. The states comprising each geographic segment are as follows:

North:    Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey, and New York

Mid-Atlantic:    Delaware, Maryland, Pennsylvania, and Virginia

South:    Florida, North Carolina, and Texas

West:    Arizona, California, Colorado, Nevada, and Washington

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

	Nine months ended July 31,						Three months ended July 31,
	2015			2014			2015			2014
Revenues:
Traditional Home Building:
North	$	463,159		$	428,415		$	180,705		$	163,530
Mid-Atlantic	579,195			552,362			228,304			202,791
South	611,288			576,589			233,504			239,902
West	895,397			889,476			324,988			381,640
Traditional Home Building	2,549,039			2,446,842			967,501			987,863
City Living	185,007			114,070			60,510			68,994
Total	$	2,734,046		$	2,560,912		$	1,028,011		$	1,056,857
Income (loss) before income taxes:
Traditional Home Building:
North	$	27,918		$	34,892		$	14,487		$	17,740
Mid-Atlantic	50,251			72,427			9,432			26,518
South	100,960			77,642			38,360			36,690
West	145,495			153,371			53,866			73,859
Traditional Home Building	324,624			338,332			116,145			154,807
City Living	80,314			35,351			22,309			26,387
Corporate and other	(86,919		)	(57,639		)	(30,990		)	(29,869		)
Total	$	318,019		$	316,044		$	107,464		$	151,325

“Corporate and other” is comprised principally of general corporate expenses such as the offices of our executive officers; the corporate finance, accounting, audit, tax, human resources, risk management, information technology, marketing, and legal groups; interest income; income from certain of our ancillary businesses, including Gibraltar; and income from a number of our unconsolidated entities.

Total assets for each of our reportable and geographic segments, as of the dates indicated, are shown in the table below (amounts in thousands):

	July 31, 2015		October 31, 2014
Traditional Home Building:
North	$	1,082,469	$	1,053,787
Mid-Atlantic	1,278,025		1,267,563
South	1,243,930		1,165,600
West	2,911,580		2,676,164
Traditional Home Building	6,516,004		6,163,114
City Living	898,451		834,949
Corporate and other	1,216,440		1,418,839
Total	$	8,630,895	$	8,416,902

“Corporate and other” is comprised principally of cash and cash equivalents, marketable securities, restricted cash, deferred tax assets, the assets of our Gibraltar investments, manufacturing facilities, and our mortgage subsidiary.

Inventory for each of our reportable and geographic segments, as of the dates indicated, is shown in the table below (amounts in thousands):

	Land controlled for future communities		Land owned for future communities		Operating communities		Total
Balances at April 30, 2015:
Traditional Home Building:
North	$	12,097	$	176,753	$	865,117	$	1,053,967
Mid-Atlantic	32,616		251,726		953,884		1,238,226
South	4,223		286,806		776,280		1,067,309
West	26,136		1,140,623		1,649,494		2,816,253
Traditional Home Building	75,072		1,855,908		4,244,775		6,175,755
City Living	1,299		488,797		325,027		815,123
	$	76,371	$	2,344,705	$	4,569,802	$	6,990,878
Balances at October 31, 2014:
Traditional Home Building:
North	$	12,007	$	171,780	$	834,266	$	1,018,053
Mid-Atlantic	29,169		209,506		994,859		1,233,534
South	10,971		219,904		793,835		1,024,710
West	22,122		1,391,028		1,177,820		2,590,970
Traditional Home Building	74,269		1,992,218		3,800,780		5,867,267
City Living	48,264		363,656		211,134		623,054
	$	122,533	$	2,355,874	$	4,011,914	$	6,490,321

The amounts we have provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable for each our of geographic segments, for the periods indicated, are shown in the table below (amounts in thousands):

	Nine months ended July 31,				Three months ended July 31,
	2015		2014		2015		2014
Traditional Home Building:
North	$	14,347	$	3,198	$	2,805	$	51
Mid-Atlantic	15,793		5,865		15,158		5,539
South	720		704		6		365
West	419		131				37
Total	$	31,279	$	9,898	$	17,969	$	5,992

Investments in unconsolidated entities for each of our reportable and geographic segments, as of the dates indicated, are shown in the table below (amounts in thousands):

	July 31, 2015		October 31, 2014
Traditional Home Building:
Mid-Atlantic	$	12,167	$	11,841
South	99,888		98,362
West	53,140		59,573
Traditional Home Building	165,195		169,776
City Living	49,488		159,953
Corporate and other	120,242		117,349
Total	$	334,925	$	447,078

“Corporate and other” is comprised of our investments in the Rental Property Joint Ventures (including the Trust and Trust II) and the Structured Asset Joint Venture. In the first quarter of fiscal 2015, a Rental Property Joint Venture that was previously included in the Mid-Atlantic geographic segment was reclassified to “Corporate and other.” Our investment balance in this joint venture at October 31, 2014, of $12.4 million, was reclassified in the table above to conform to the fiscal 2015 presentation.