Other Income – Net

The table below provides the components of “Other income – net” for the years ended October 31, 2018, 2017, and 2016 (amounts in thousands):



	2018		2017			2016
Interest income	$	8,570	$	5,988		$	2,443
Income from ancillary businesses	25,692		18,934			24,119
Management fee income from home building unconsolidated entities, net	11,740		12,902			10,270
Retained customer deposits	8,937		5,801			5,866
Income from land and other sales	6,331		8,621			13,327
Other	1,190		(1,184		)	(71		)
Total other income – net	$	62,460	$	51,062		$	55,954

Management fee income from home building unconsolidated entities presented above primarily represents fees earned by our City Living and Traditional Home Building operations. In addition, in fiscal 2018, 2017 and 2016, our apartment living operations earned fees from unconsolidated entities of $7.5 million, $6.2 million, and $6.1 million, respectively. Fees earned by our apartment living operations are included in income from ancillary businesses above.

In fiscal 2018, our security monitoring business recognized a $10.7 million gain from a bulk sale of security monitoring accounts by our home control solutions business, which is included in income from ancillary businesses above. In addition, in fiscal 2018, we recognized a $3.5 million write-down of a commercial property operated by Toll Brothers Apartment Living, which is included in income from ancillary businesses above. In fiscal 2016, our security monitoring business recognized a gain of $1.6 million from a bulk sale of security monitoring accounts in fiscal 2015, which is included in income from ancillary businesses above.

As discussed in Note 1, “Significant Accounting Policies,” as a result of our adoption of ASU 2017-07 on November 1, 2017, pension costs, other than service costs, are included in “Other” above. We reclassified costs totaling $2.2 million and $2.3 million in fiscal 2017 and 2016, respectively, due to this adoption.

Income from ancillary businesses is generated by our mortgage, title, landscaping, security monitoring, Gibraltar, apartment living, and golf course and country club operations. The table below provides revenues and expenses for these ancillary businesses for the years ended October 31, 2018, 2017, and 2016 (amounts in thousands):



	2018		2017		2016
Revenue	$	158,051	$	134,116	$	126,741
Expense	$	132,359	$	115,182	$	102,622

The table below provides revenues and expenses recognized from land sales for the years ended October 31, 2018, 2017, and 2016 (amounts in thousands):



	2018			2017			2016
Revenue	$	134,327		$	284,928		$	85,268
Expense	(124,162		)	(278,034		)	(70,488		)
Deferred gains on land sales to joint ventures	(3,834		)	(2,996		)	(2,999		)
Deferred gains recognized				4,723			1,546
	$	6,331		$	8,621		$	13,327

Land sale revenues for the year ended October 31, 2018 included $80.3 million related to sale transactions with four new Rental Property Joint Ventures in which we have interests ranging from 25% to 50%. On one of these transactions, we recognized a gain of $1.0 million in fiscal 2018. In addition, due to our continued involvement in the joint venture primarily through guarantees provided on the joint venture’s debt, we deferred $3.8 million of the gain realized on this sale. We will recognize the deferred gain into income as the guarantees provided expire.

Land sale revenues for the year ended October 31, 2017 included $257.8 million related to sale transactions with two new Home Building Joint Ventures and a Rental Property Joint Venture in which we have interests ranging from 20% to 25%. No gain or loss was realized on the sales related to the Home Building Joint Ventures. Due to our continued involvement in the new Rental Property Joint Venture through our retained ownership interest and guarantees provided on the joint venture’s debt, we deferred the $3.0 million gain realized on this sale. We will recognize the deferred gain into income as the guarantees provided expire and when we sell our ownership interest in the Rental Property Joint Venture.

Land sale revenues for the year ended October 31, 2016 included $38.1 million related to a sale transaction with a new Rental Property Joint Venture in which we have a 50% interest. Due to our continued involvement in the joint venture through our ownership interest, we deferred 50% of the gain realized on the sale of $3.0 million. We will recognize the deferred gain into income when we sell our ownership interest in the Rental Property Joint Venture.

The deferred gains recognized in the fiscal 2017 and 2016 periods relate to the sale of a property in fiscal 2015 to a Home Building Joint Venture in which we had a 25% interest. Due to our continued involvement in this unconsolidated entity through our ownership interest and guarantees provided on the entity’s debt, we deferred the $9.3 million gain realized on the sale. We recognized the gain as units were sold to the ultimate home buyers which is included in deferred gains recognized above. In the fourth quarter of fiscal 2017, we purchased the remaining inventory from this Home Building Joint Venture. The remaining unamortized deferred gain was used to reduce the basis of the inventory acquired.

See Note 4, “Investments in Unconsolidated Entities,” for more information on these transactions.

Subsequent event

In December 2018, we sold one of our golf club properties to a third party for $18.5 million. We expect to recognize a gain of approximately $12.5 million in our first quarter of fiscal 2019 as a result of this sale.