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Stock-Based Benefit Plans
 12 Months Ended
Oct. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Benefit Plans Stock-Based Benefit Plans
We grant stock options, restricted stock, and various types of restricted stock units to our employees and our non-employee directors under our stock incentive plans. Restricted stock unit awards may be based on performance conditions, market conditions or service over a requisite time period (time-based). On March 12, 2019, shareholders approved the Toll Brothers, Inc. 2019 Omnibus Incentive Plan (the “Omnibus Plan”), which succeeded the Toll Brothers, Inc. Stock Incentive Plan for Employees (2014) and the Toll Brothers, Inc. Stock Incentive Plan for Non-Executive Directors (2016) with respect to equity awards granted after its adoption, and no additional equity awards may be granted under such prior plans. As a result, the Omnibus Plan is the sole plan out of which new equity awards may be granted to employees (including executive officers), directors and other eligible participants under the plan. The Omnibus Plan provides for the granting of incentive stock options (solely to employees) and nonqualified stock options with a term of up to 10 years at a price not less than the market price of the stock at the date of grant. The Omnibus Plan also provides for the issuance of stock appreciation rights and restricted and unrestricted stock awards and stock units, which may be performance-based. Stock options and restricted stock units granted under the Omnibus Plan generally vest over a four-year period for employees and a two-year period for non-employee directors. Shares issued upon the exercise of a stock option or settlement of restricted stock units are either from shares held in treasury or newly issued shares. At October 31, 2022, 2021, and 2020, we had 5.0 million; 5.7 million; and 6.7 million shares, respectively, available for grant under the plans.
The following table provides information regarding the amount of total stock-based compensation expense recognized by us for fiscal year 2022, 2021, and 2020 (amounts in thousands):
202220212020
Total stock-based compensation expense recognized$21,095 $23,187 $24,326 
Income tax benefit recognized$5,312 $5,910 $6,227 
At October 31, 2022, the aggregate unamortized value of outstanding stock-based compensation awards was approximately $15.5 million and the weighted-average period over which we expect to recognize such compensation costs was approximately 2.4 years.
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 ranges of assumptions noted in the following table. Expected volatilities were based on a combination of implied volatilities from traded options on our stock, historical volatility of our 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 ranges set forth below result from certain groups of employees exhibiting different behaviors impacting exercisability. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.
The following table summarizes the weighted-average assumptions and fair value used for stock option grants in each of the fiscal years ended October 31, 2022, 2021, and 2020:
 202220212020
Expected volatility43.65%43.33%27.42% - 28.30%
Weighted-average volatility43.65%43.33%27.42%
Risk-free interest rate1.23%0.49%1.72% - 1.78%
Expected life (years)5.755.754.64 - 5.76
Dividends1.01%0.96%1.11%
Weighted-average fair value per share of options granted
$24.36$15.88$9.68
The fair value of stock option grants is recognized evenly over the vesting period of the options or over the period between the grant date and the time the option becomes nonforfeitable by the employee, whichever is shorter. Information regarding the stock compensation expense related to stock options for fiscal 2022, 2021 and 2020 was as follows (amounts in thousands):
202220212020
Stock compensation expense recognized - options$791 $1,812 $3,144 
The following table summarizes stock option activity for our plans during the fiscal year ended October 31, 2022 (amounts in thousands, except per share amounts):
 2022
Number
of
options		Weighted-
average
exercise
price		Weighted- average remaining contractual life (in years)Aggregate intrinsic value
Balance, November 1,2,998 $34.10 
Granted9 $67.15 
Exercised(180)$31.35 
Cancelled(4)$43.65 
Balance, October 31,2,823 $34.37 3.19 years$25,835 
Options exercisable, at October 31,2,657 $34.09 2.96 years$24,843 
Information pertaining to the intrinsic value of options exercised and the fair market value of options that became vested or modified in each of the fiscal years ended October 31, 2022, 2021, and 2020, is provided below (amounts in thousands):
202220212020
Intrinsic value of options exercised$6,179 $16,328 $23,281 
Fair market value of options vested$2,025 $3,578 $5,926 
Performance-Based Restricted Stock Units:
In fiscal 2022, 2021, and 2020, the Executive Compensation Committee approved awards of performance-based restricted stock units (“Performance-Based RSUs”) relating to shares of our common stock to certain members of our senior management. The number of shares earned for Performance-Based RSUs is based on the attainment of certain operational performance metrics approved by the Executive Compensation Committee in the year of grant. The number of shares underlying the Performance-Based RSUs that may be issued to the recipients ranges from 0% to 150% of the base award depending on actual achievement as compared to the target performance goals. Shares earned based on actual performance vest pro-rata over a four-year period (provided the recipients continue to be employed by us as specified in the award document) or cliff-vest at the end of a three-year performance period.
The value of the Performance-Based RSUs was determined to be equal to the estimated number of shares of our common stock to be issued multiplied by the closing price of our common stock on the New York Stock Exchange (“NYSE”) on the date the Performance-Based RSU awards were approved by the Executive Compensation Committee (“Valuation Date”), adjusted for post-vesting restrictions applicable to retirement eligible participants. Compensation expense related to these grants is based on the Company’s performance against the related performance criteria, the elapsed portion of the performance period and the grant date fair value of the award. To estimate the fair value of the award, we evaluate the performance goals quarterly and estimate the number of shares underlying the Performance-Based RSUs that are probable of being issued.
A summary of the status of our nonvested Performance-Based RSUs as of October 31, 2022, and changes during the year ended October 31, 2022, is presented below (share amounts in thousands):
2022Weighted-average grant date fair value
Nonvested at November 1,329 $35.87 
Granted/Target72 $53.45 
Vested(121)$37.19 
Nonvested at October 31, 280 $39.79 

The following table provides information regarding the issuance, valuation assumptions, and amortization of the Performance-Based RSUs issued in fiscal 2022, 2021, and 2020:
 202220212020
Estimated number of shares underlying Performance-Based RSUs to be issued71,576 128,894 116,423 
Aggregate number of Performance-Based RSUs outstanding at October 31507,604 539,592 579,115 
Weighted-average fair value per share of Performance-Based RSUs issued$45.41 $29.87 $32.55 
Aggregate grant date fair value of Performance-Based RSUs issued (in thousands)$6,156 $5,030 $3,790 
Performance-Based RSU expense recognized (in thousands)$4,346 $5,989 $5,986 
Fair market value of Performance-Based RSUs vested (in thousands)$4,514 $5,084 $5,638 
Shares earned with respect to Performance-Based RSUs granted in December 2015, 2016, and 2017 were delivered in fiscal 2020, 2021, and 2022, respectively.
Time-Based Restricted Stock Units:
We issue time-based restricted stock units (“Time-Based RSUs”) to various officers, employees, and non-employee directors on an annual basis. These Time-Based RSUs generally vest in annual installments over a two-year (for non-employee directors) or four-year (for employees) period and are generally settled at the end of such period. The value of the Time-Based RSUs are determined to be equal to the number of shares of our common stock underlying the Time-Based RSUs multiplied by the closing price of our common stock on the NYSE on the date the Time-Based RSUs are awarded, adjusted for post-vesting restrictions applicable to retirement eligible participants. The fair value of Time-Based RSUs is expensed evenly over the shorter of the vesting period or the period between the grant date and the time the award becomes nonforfeitable by the participant.

A summary of our Time-Based RSUs nonvested shares as of October 31, 2022, and changes during the year ended October 31, 2022, is presented below (share amounts in thousands):
2022Weighted-average grant date fair value
Nonvested at November 1,911 $39.45 
Granted316 $61.77 
Vested(348)$39.96 
Forfeited(37)$49.36 
Nonvested at October 31,842 $47.18 
The following table provides additional information on the Time-Based RSUs for fiscal 2022, 2021, and 2020:
202220212020
Time-Based RSUs issued:  
Number of Time-Based RSUs issued276,421 386,017 461,280 
Weighted-average fair value per share of Time-Based RSUs issued$45.55 $33.21 $37.43 
Aggregate fair value of Time-Based RSUs issued (in thousands)$12,591 $12,820 $17,267 
Time-Based RSU expense recognized (in thousands):$15,738 $14,531 $12,744 
Fair market value of Time-Based RSUs vested (in thousands):$13,925 $14,029 $11,837 
202220212020
At October 31:  
Aggregate number of Time-Based RSUs outstanding1,315,303 1,312,710 1,315,371 
Cumulative unamortized value of Time-Based RSUs (in thousands)
$14,902 $12,919 $10,972 
Employee Stock Purchase Plan (“ESPP”)
Our ESPP enables substantially all employees to purchase our common stock at 95% of the market price of the stock on specified offering dates without restriction or at 85% of the market price of the stock on specified offering dates subject to restrictions. The ESPP, which is scheduled to terminate in December 2027, provides that 500,000 shares be reserved for purchase. At October 31, 2022, 282,000 shares were available for issuance. In fiscal 2022, 2021 and 2020, we issued 38,932 shares, 31,257 shares, and 54,235 shares under the ESPP, respectively. The expense recognized in all fiscal periods was not material.