XML 42 R25.htm IDEA: XBRL DOCUMENT v3.20.4
Other Income - Net
 12 Months Ended
Oct. 31, 2020
Other Income and Expenses [Abstract]  
Other Income - net [Text Block] Other Income – Net
The table below provides the components of “Other income – net” for the years ended October 31, 2020, 2019, and 2018 (amounts in thousands):
202020192018
Interest income$10,009 $19,017 $8,570 
Income from ancillary businesses25,540 53,568 25,692 
Management fee income from home building unconsolidated entities, net3,636 9,948 11,740 
Retained customer deposits— — 8,937 
Income from land sales— — 6,331 
Directly expensed interest(2,440)— — 
Other(1,052)(1,031)1,190 
Total other income – net$35,693 $81,502 $62,460 
As a result of our adoption of ASC 606 as of November 1, 2018, revenues and cost of revenues from land sales are presented as separate components on our Consolidated Statement of Operations and Comprehensive Income. In addition, retained customer deposits are presented in home sales revenues on our Consolidated Statement of Operations and Comprehensive Income. Because we elected to apply the modified retrospective method of adoption, prior periods have not been restated to reflect these changes in presentation. See Note 1, “Significant Accounting Policies – Recent Accounting Pronouncements” for additional information regarding the impact of the adoption of ASC 606.
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 2020, 2019 and 2018, our apartment living operations earned fees from unconsolidated entities of $14.0 million, $11.9 million, and $7.5 million, respectively. Fees earned by our apartment living operations are included in income from ancillary businesses above.
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, 2020, 2019, and 2018 (amounts in thousands):
202020192018
Revenues$118,855 $150,114 $158,051 
Expenses$106,285 $132,823 $132,359 
Other income$12,970 $36,277 $— 
In fiscal 2020, we sold one of our golf club properties to a third party for $15.6 million and recognized a gain of $9.1 million. In addition, we recognized a previously deferred gain of $3.8 million related to the sale of a golf club property from fiscal 2019.
In fiscal 2019, we sold seven of our golf club properties to third parties for $64.3 million and we recognized a gain of $35.1 million during the year ended October 31, 2019 as a result of these sales.
In fiscal 2018, we 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.
The table below provides revenues and expenses recognized from land sales for the year ended October 31, 2018 (amounts in thousands):
2018
Revenue$134,327 
Expense127,996 
$6,331 
Land sale revenues for the year ended October 31, 2018 included $80.3 million related to sale transactions with four 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.
See Note 4, “Investments in Unconsolidated Entities,” for more information on these transactions.