10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended April 30, 2023

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 001-09186

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.)
1140 Virginia Drive	Fort Washington	Pennsylvania	19034
(Address of principal executive offices)			(Zip Code)

(215) 938-8000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	TOL	New York Stock Exchange

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 þ No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐	Non-accelerated filer	☐
Smaller reporting company	☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

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

At May 30, 2023, there were approximately 109,342,000 shares of Common Stock, par value $0.01 per share, 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 (Unaudited)	2
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)	3
Condensed Consolidated Statements of Changes in Equity (Unaudited)	4
Condensed Consolidated Statements of Cash Flows (Unaudited)	6
Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3. Quantitative and Qualitative Disclosures About Market Risk	43
Item 4. Controls and Procedures	44
PART II. Other Information
Item 1. Legal Proceedings	45
Item 1A. Risk Factors	45
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 6. Exhibits	46
SIGNATURES	47

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 (the “Exchange Act”). One can identify these statements by the fact that they do not relate to matters of a strictly historical or factual nature and generally discuss or relate to future events. These statements contain words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “may,” “can,” “could,” “might,” “should,” “likely”, “will” and other words or phrases of similar meaning. Such statements may include, but are not limited to, information and statements regarding: expectations regarding interest rates and inflation; the markets in which we operate or may operate; our strategic objectives and priorities; our land acquisition, land development and capital allocation plans and priorities; housing market conditions; demand for our homes; anticipated operating results and guidance; home deliveries; financial resources and condition; changes in revenues, in profitability and in margins; changes in accounting treatment; cost of revenues, including expected labor and material costs; availability of labor and materials; selling, general, and administrative expenses; interest expense; inventory write-downs; home warranty and construction defect claims; 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; our ability to acquire or dispose of land and pursue real estate opportunities; our ability to gain approvals to develop land, open new communities and deliver homes; our ability to market, construct and sell homes and properties; the rate at which we deliver homes from backlog; our ability to secure materials and subcontractors; our ability to produce the liquidity and capital necessary to conduct normal business operations or to expand and take advantage of opportunities; and the outcome of legal proceedings, investigations, and claims.

From time to time, forward-looking statements also are included in other reports on Forms 10-K, 10-Q, and 8-K; in press releases; in presentations; on our website; and in other materials released to the public. 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. This can occur as a result of incorrect assumptions or as a consequence of known or unknown risks and uncertainties. Therefore, we caution you not to place undue reliance on our forward-looking statements. The major risks and uncertainties – and assumptions that are made – that affect our business and may cause actual results to differ from these forward-looking statements include, but are not limited to:

•the effect of general economic conditions, including employment rates, housing starts, interest rate levels, home affordability, inflation, consumer sentiment, availability of financing for home mortgages and strength of the U.S. dollar;

•market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions;

•the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such land;

•access to adequate capital on acceptable terms;

•geographic concentration of our operations;

•levels of competition;

•the price and availability of lumber, other raw materials, home components;

•the impact of labor shortages, including on our subcontractors, supply chain and municipalities;

•the effect of U.S. trade policies, including the imposition of tariffs and duties on home building products and retaliatory measures taken by other countries;

•the effects of weather and the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters;

•risks arising from acts of war, terrorism or outbreaks of contagious diseases, such as COVID-19;

•federal and state tax policies;

•transportation costs;

•the effect of land use, environmental and other governmental laws and regulations;

•legal proceedings or disputes and the adequacy of reserves;

•risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, indebtedness, financial condition, losses and future prospects;

•the effect of potential loss of key management personnel;

•changes in accounting principles; and

•risks related to unauthorized access to our computer systems, theft of our and our homebuyers’ confidential information or other forms of cyber-attack.

Many of the factors mentioned above, elsewhere in this report or in other reports or public statements made by us will be important in determining our future performance. Consequently, actual results may differ materially from those that might be anticipated from our forward-looking statements.

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.

For a further discussion of factors that we believe could cause our actual results to differ materially from expected and historical results, see “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K filed with the SEC and in this report.

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 year refer to our fiscal years ended or ending October 31.

1

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

TOLL BROTHERS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

	April 30, 2023		October 31, 2022
	(unaudited)
ASSETS
Cash and cash equivalents	$	761,945	$	1,346,754
Inventory (1)	9,107,878		8,733,326
Property, construction, and office equipment – net	298,168		287,827
Receivables, prepaid expenses, and other assets	697,612		747,228
Mortgage loans held for sale – at fair value	112,603		185,150
Customer deposits held in escrow	123,627		136,115
Investments in unconsolidated entities (1)	887,643		852,314
	$	11,989,476	$	12,288,714
LIABILITIES AND EQUITY
Liabilities
Loans payable	$	1,136,235	$	1,185,275
Senior notes	1,595,727		1,995,271
Mortgage company loan facility	102,489		148,863
Customer deposits	662,559		680,588
Accounts payable	550,900		619,411
Accrued expenses	1,334,197		1,345,987
Income taxes payable	171,643		291,479
Total liabilities	5,553,750		6,266,874
Equity
Stockholders’ equity
Preferred stock, none issued	—		—
Common stock, 127,937 shares issued at April 30, 2023 and October 31, 2022	1,279		1,279
Additional paid-in capital	697,583		716,786
Retained earnings	6,632,502		6,166,732
Treasury stock, at cost — 18,505 and 18,312 shares at April 30, 2023 and October 31, 2022, respectively	(945,019)		(916,327)
Accumulated other comprehensive income ("AOCI")	33,875		37,618
Total stockholders’ equity	6,420,220		6,006,088
Noncontrolling interest	15,506		15,752
Total equity	6,435,726		6,021,840
	$	11,989,476	$	12,288,714

(1)    As of April 30, 2023 and October 31, 2022, inventory and investments in unconsolidated entities include $84.3 million and $81.3 million, respectively, of assets related to consolidated variable interest entities (“VIEs”). See Note 3, “Investments in Unconsolidated Entities” for additional information regarding VIEs.

See accompanying notes.

2

TOLL BROTHERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Amounts in thousands, except per share data)

(Unaudited)

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Revenues:
Home sales	$	2,490,098	$	2,186,529	$	4,239,520	$	3,873,881
Land sales and other	16,881		91,012		47,628		194,741
	2,506,979		2,277,541		4,287,148		4,068,622
Cost of revenues:
Home sales	1,832,878		1,659,265		3,133,801		2,948,792
Land sales and other	20,850		92,981		63,285		192,598
	1,853,728		1,752,246		3,197,086		3,141,390
Selling, general and administrative	227,537		243,637		439,034		470,507
Income from operations	425,714		281,658		651,028		456,725
Other:
(Loss) income from unconsolidated entities	(5,302)		2,933		(9,735)		24,970
Other income – net	10,180		11,224		43,095		14,936
Income before income taxes	430,592		295,815		684,388		496,631
Income tax provision	110,376		75,222		172,642		124,134
Net income	$	320,216	$	220,593	$	511,746	$	372,497
Other comprehensive (loss) income – net of tax	(279)		13,608		(3,743)		18,310
Total comprehensive income	$	319,937	$	234,201	$	508,003	$	390,807
Per share:
Basic earnings	$	2.88	$	1.87	$	4.60	$	3.12
Diluted earnings	$	2.85	$	1.85	$	4.56	$	3.08
Weighted-average number of shares:
Basic	111,214		117,839		111,306		119,418
Diluted	112,184		118,925		112,260		120,891

See accompanying notes.

3

TOLL BROTHERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Amounts in thousands)

(Unaudited)

For the three months ended April 30, 2023 and 2022:

	Common Stock		Addi- tional Paid-in Capital		Retained Earnings		Treasury Stock		AOCI		Non-controlling Interest		Total Equity
Balance, January 31, 2023	$	1,279	$	696,115	$	6,335,574	$	(865,775)	$	34,154	$	15,647	$	6,216,994
Net income					320,216								320,216
Purchase of treasury stock							(83,846)						(83,846)
Exercise of stock options, stock based compensation issuances, and employee stock purchase plan issuances			(1,173)				4,602						3,429
Stock-based compensation			2,641										2,641
Dividends declared					(23,288)								(23,288)
Other comprehensive loss									(279)				(279)
Loss attributable to non-controlling interest											(141)		(141)
Balance, April 30, 2023	$	1,279	$	697,583	$	6,632,502	$	(945,019)	$	33,875	$	15,506	$	6,435,726
Balance, January 31, 2022	$	1,279	$	711,558	$	5,100,841	$	(563,618)	$	5,811	$	45,579	$	5,301,450
Net income					220,593								220,593
Purchase of treasury stock							(106,511)						(106,511)
Exercise of stock options, stock based compensation issuances, and employee stock purchase plan issuances			(312)				733						421
Stock-based compensation			3,405										3,405
Dividends declared					(23,495)								(23,495)
Other comprehensive income									13,608				13,608
Income attributable to non-controlling interest											65		65
Capital distributions – net											(29,870)		(29,870)
Balance, April 30, 2022	$	1,279	$	714,651	$	5,297,939	$	(669,396)	$	19,419	$	15,774	$	5,379,666

4

For the six months ended April 30, 2023 and 2022:

	Common Stock		Addi- tional Paid-in Capital		Retained Earnings		Treasury Stock		AOCI		Non-controlling Interest		Total Equity
	$		$		$		$		$		$		$
Balance, October 31, 2022	$	1,279	$	716,786	$	6,166,732	$	(916,327)	$	37,618	$	15,752	$	6,021,840
Net income					511,746								511,746
Purchase of treasury stock							(93,203)						(93,203)
Exercise of stock options, stock based compensation issuances, and employee stock purchase plan issuances			(36,228)				64,511						28,283
Stock-based compensation			17,025										17,025
Dividends declared					(45,976)								(45,976)
Other comprehensive loss									(3,743)				(3,743)
Loss attributable to non-controlling interest											(246)		(246)
Balance, April 30, 2023	$	1,279	$	697,583	$	6,632,502	$	(945,019)	$	33,875	$	15,506	$	6,435,726
Balance, October 31, 2021	$	1,279	$	714,453	$	4,969,839	$	(391,656)	$	1,109	$	45,431	$	5,340,455
Net income					372,497								372,497
Purchase of treasury stock							(292,279)						(292,279)
Exercise of stock options, stock based compensation issuances, and employee stock purchase plan issuances			(16,822)				14,539						(2,283)
Stock-based compensation			17,020										17,020
Dividends declared					(44,397)								(44,397)
Other comprehensive income									18,310				18,310
Income attributable to non-controlling interest											86		86
Capital distributions - net											(29,743)		(29,743)
Balance, April 30, 2022	$	1,279	$	714,651	$	5,297,939	$	(669,396)	$	19,419	$	15,774	$	5,379,666

See accompanying notes.

5

TOLL BROTHERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

	Six months ended April 30,
	2023		2022
Cash flow provided by (used in) operating activities:
Net income	$	511,746	$	372,497
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	34,093		33,536
Stock-based compensation	17,025		17,020
Loss (income) from unconsolidated entities	9,735		(24,970)
Distributions of earnings from unconsolidated entities	30,447		29,636
Deferred tax provision	8,646		6,797
Impairment charges and write-offs	36,773		11,225
Other	2,371		2,831
Changes in operating assets and liabilities:
Inventory	(299,940)		(890,202)
Origination of mortgage loans	(705,500)		(931,958)
Sale of mortgage loans	783,959		1,027,696
Receivables, prepaid expenses, and other assets	4,233		(239)
Current income taxes – net	(127,199)		(14,321)
Customer deposits – net	(5,541)		110,460
Accounts payable and accrued expenses	(155,277)		45,020
Net cash provided by (used in) operating activities	145,571		(204,972)
Cash flow used in investing activities:
Purchase of property, construction, and office equipment – net	(39,544)		(39,140)
Investments in unconsolidated entities	(117,221)		(121,282)
Return of investments in unconsolidated entities	48,564		88,371
Proceeds from the sale of assets	9,041		—
Other	—		194
Net cash used in investing activities	(99,160)		(71,857)
Cash flow used in financing activities:
Proceeds from loans payable	1,652,710		1,826,068
Debt issuance costs	(5,265)		—
Principal payments of loans payable	(1,771,636)		(1,879,318)
Redemption of senior notes	(400,000)		(409,856)
Proceeds (payments) related to stock-based benefit plans – net	28,286		(2,279)
Purchase of treasury stock	(93,089)		(284,276)
Dividends paid	(46,306)		(44,255)
Payments related to noncontrolling interest – net	—		(25,766)
Net cash used in financing activities	(635,300)		(819,682)
Net decrease in cash, cash equivalents, and restricted cash	(588,889)		(1,096,511)
Cash, cash equivalents, and restricted cash, beginning of period	1,398,550		1,684,412
Cash, cash equivalents, and restricted cash, end of period	$	809,661	$	587,901

See accompanying notes.

6

TOLL BROTHERS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Significant Accounting Policies

Basis of Presentation

Our condensed consolidated financial statements include the accounts of Toll Brothers, Inc. (the “Company,” “we,” “us,” or “our”), a Delaware corporation, and its majority owned subsidiaries. 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 we have effective control of the entity, in which case we would consolidate the entity.

Our 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, 2022 balance sheet amounts and disclosures have been derived from our October 31, 2022 audited financial statements. Since the 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, they should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022 (“2022 Form 10-K”). In the opinion of management, the unaudited condensed consolidated financial statements include all recurring adjustments necessary to present fairly our financial position as of April 30, 2023; the results of our operations and changes in equity for the three-month and six-month periods ended April 30, 2023 and 2022; and our cash flows for the six-month periods ended April 30, 2023 and 2022. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

Use of Estimates

The preparation of financial statements in accordance with GAAP requires estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Estimates and assumptions may prove to be incorrect for a variety of reasons, whether as a result of the risks and uncertainties our business is subject to or for other reasons. In times of economic disruption when uncertainty regarding future economic conditions is heightened, our estimates and assumptions are subject to greater variability. Actual results could differ from the estimates and assumptions we make and such differences may be material.

Revenue Recognition

Home sales revenues: Revenues and cost of revenues from home sales are recognized at the time each home is delivered and title and possession are transferred to the buyer. For the majority of our home closings, our performance obligation to deliver a home is satisfied in less than one year from the date a binding sale agreement is signed. In certain states where we build, we are not able to complete certain outdoor features prior to the closing of the home. To the extent these separate performance obligations are not complete upon the home closing, we defer a portion of the home sales revenues related to these obligations and subsequently recognize the revenue upon completion of such obligations. As of April 30, 2023, the home sales revenues and related costs we deferred related to these obligations were immaterial. Our contract liabilities, consisting of deposits received from customers for sold but undelivered homes, totaled $662.6 million and $680.6 million at April 30, 2023 and October 31, 2022, respectively. Of the outstanding customer deposits held as of October 31, 2022, we recognized $152.2 million and $275.1 million in home sales revenues during the three months and six months ended April 30, 2023. Of the outstanding customer deposits held as of October 31, 2021, we recognized $132.9 million and $243.8 million in home sales revenues during the three and six months ended April 30, 2022.

Land sales and other revenues: Our revenues from land sales and other generally consist of: (1) land sales to joint ventures in which we retain an interest; (2) lot sales to third-party builders within our master-planned communities; (3) bulk sales to third parties of land we have decided no longer meets our development criteria; and (4) sales of commercial and retail properties generally located at our high-rise urban luxury condominium buildings. In general, our performance obligation for each of these land sales is fulfilled upon the delivery of the land, which generally coincides with the receipt of cash consideration from the counterparty. For land sale transactions that contain repurchase options, revenues and related costs are not recognized until the repurchase option expires. In addition, when we sell land to a joint venture in which we retain an interest, we do not recognize revenue or gains on the sale to the extent of our retained interest in such joint venture.

Forfeited Customer Deposits: Forfeited customer deposits are recognized in “Home sales revenues” in our Condensed Consolidated Statements of Operations and Comprehensive Income in the period in which we determine that the customer will not complete the purchase of the home and we have the right to retain the deposit.

7

Sales Incentives: In order to promote sales of our homes, we may offer our home buyers sales incentives. These incentives vary by type of incentive and by amount on a community-by-community and home-by-home basis. Incentives are reflected as a reduction in home sales revenues. Incentives are recognized at the time the home is delivered to the home buyer and we receive the sales proceeds.

Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “Reference Rate Reform (Topic 848),” as amended by ASU 2021-01 in January 2021 and ASU 2022-06 in December 2022 (“ASC 848”), directly addressing the effects of reference rate reform on financial reporting as a result of the cessation of the publication of certain London Interbank Offered Rate (“LIBOR”) rates beginning December 31, 2021. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform by virtue of referencing LIBOR or another reference rate expected to be discontinued. This guidance became effective on March 12, 2020 and can be adopted no later than December 31, 2024, with early adoption permitted. We elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance on our consolidated financial statements and may apply other elections as applicable as additional changes in the market occur.

Reclassification

Certain prior period amounts have been reclassified to conform to the fiscal 2023 presentation.

2. Inventory

Inventory at April 30, 2023 and October 31, 2022 consisted of the following (amounts in thousands):

	April 30, 2023		October 31, 2022
Land controlled for future communities	$	170,613	$	240,751
Land owned for future communities	876,561		808,851
Operating communities	8,060,704		7,683,724
	$	9,107,878	$	8,733,326

Operating communities include communities offering homes for sale; communities that have sold all available home sites but have not completed delivery of the homes 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.

Backlog consists of homes under contract but not yet delivered to our home buyers (“backlog”).

The amounts we have provided for inventory impairment charges and the expensing of costs that we believe not to be recoverable, for the periods indicated, which are included in home sales cost of revenues, are shown in the table below (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Land controlled for future communities	$	5,844	$	2,192	$	8,448	$	2,985
Land owned for future communities	325		—		325		1,440
Operating communities	4,900		—		10,300		—
	$	11,069	$	2,192	$	19,073	$	4,425

We have also recognized $4.7 million and $17.7 million of impairment charges on land held for sale included in land sales and other cost of revenues during the three-month and six-month periods ended April 30, 2023, respectively. We recognized $5.2 million of similar charges during the three-month and six-month periods ended April 30, 2022.

See Note 13, “Commitments and Contingencies,” for information regarding land purchase commitments.

At April 30, 2023, we evaluated our land purchase contracts, including those to acquire land for apartment developments, to determine whether any of the selling entities were variable interest entities (“VIEs”) and, if they were, whether we were the

8

primary beneficiary of any of them. Under these land purchase contracts, we do not possess legal title to the land; our risk is generally limited to deposits paid to the sellers and predevelopment costs incurred; and the creditors of the sellers generally have no recourse against us. At April 30, 2023, we determined that 236 land purchase contracts, with an aggregate purchase price of $3.75 billion, on which we had made aggregate deposits totaling $414.6 million, were VIEs, and that we were not the primary beneficiary of any VIE related to our land purchase contracts. At October 31, 2022, we determined that 237 land purchase contracts, with an aggregate purchase price of $3.89 billion, on which we had made aggregate deposits totaling $417.6 million, were VIEs and that we were not the primary beneficiary of any VIE related to our land purchase contracts.

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

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Interest capitalized, beginning of period	$	215,197	$	247,942	$	209,468	$	253,938
Interest incurred	37,862		31,888		74,716		62,893
Interest expensed to home sales cost of revenues	(37,558)		(40,822)		(62,638)		(73,259)
Interest expensed to land sales and other cost of revenues	(1,350)		(219)		(4,827)		(3,628)
Interest capitalized on investments in unconsolidated entities	(2,668)		(1,516)		(5,161)		(2,806)
Previously capitalized interest transferred to investments in unconsolidated entities	—		—		(244)		—
Previously capitalized interest on investments in unconsolidated entities transferred to inventory	277		60		446		195
Interest capitalized, end of period	$	211,760	$	237,333	$	211,760	$	237,333

During the three months ended April 30, 2023 and 2022, we recognized approximately $(588,000) and $(17,616,000) of net (gains) losses related to our interest rate swaps which is included in accumulated other comprehensive income, respectively, and approximately $(1,000,000) and $106,000 of net (gains) losses were reclassified out of accumulated other comprehensive income to home sales cost of revenues, respectively. During the six months ended April 30, 2023 and 2022, we recognized approximately $3,709,000 and $(23,363,000) of net losses (gains) related to our interest rate swaps which is included in accumulated other comprehensive income, respectively, and approximately $(1,362,000) and $182,000 of net (gains) losses were reclassified out of accumulated other comprehensive income to home sales cost of revenues, respectively.

3. Investments in Unconsolidated Entities

We have investments in various unconsolidated entities and our ownership interest in these investments ranges from 5.0% to 50%. These entities are structured as joint ventures and either: (i) develop land for the joint venture participants and for sale to outside builders (“Land Development Joint Ventures”); (ii) develop for-sale homes (“Home Building Joint Ventures”); (iii) develop luxury for-rent residential apartments and single family homes, commercial space, and a hotel (“Rental Property Joint Ventures”); or (iv) provide financing and land banking to residential builders and developers for the acquisition and development of land and home sites (“Gibraltar Joint Ventures”).

The table below provides information as of April 30, 2023, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Number of unconsolidated entities	16		3		43		4		66
Investment in unconsolidated entities (1)	$	341,358	$	66,271	$	468,336	$	11,678	$	887,643
Number of unconsolidated entities with funding commitments by the Company	9		—		22		1		32
Company’s remaining funding commitment to unconsolidated entities (2)	$	215,524	$	—	$	107,524	$	11,570	$	334,618

(1)    Our total investment includes $104.8 million related to 13 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $201.2 million as of April 30, 2023. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 20% to 50%.

(2)    Our remaining funding commitment includes approximately $106.2 million related to our unconsolidated joint venture-related variable interests in VIEs.

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The table below provides information as of October 31, 2022, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Number of unconsolidated entities	15		3		41		4		63
Investment in unconsolidated entities (1)	$	343,314	$	49,385	$	441,399	$	18,216	$	852,314
Number of unconsolidated entities with funding commitments by the Company	9		1		18		1		29
Company’s remaining funding commitment to unconsolidated entities (2)	$	180,812	$	20,072	$	90,900	$	12,533	$	304,317

(1)    Our total investment includes $100.2 million related to 13 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $200.0 million as of October 31, 2022. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 20% to 50%.

(2)    Our remaining funding commitment includes approximately $105.0 million related to our unconsolidated joint venture-related variable interests in VIEs.

Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at April 30, 2023, regarding the debt financing obtained by category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Total
Number of joint ventures with debt financing	11		2		40		53
Aggregate loan commitments	$	576,959	$	219,650	$	3,638,795	$	4,435,404
Amounts borrowed under loan commitments	$	449,637	$	78,114	$	2,036,446	$	2,564,197

The table below provides information at October 31, 2022, regarding the debt financing obtained by category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Total
Number of joint ventures with debt financing	10		2		35		47
Aggregate loan commitments	$	557,185	$	219,650	$	3,317,261	$	4,094,096
Amounts borrowed under loan commitments	$	444,306	$	17,583	$	1,774,567	$	2,236,456

More specific and/or recent information regarding our investments in, advances to, and future commitments to these entities is provided below.

New Joint Ventures

The table below provides information on joint ventures entered into during the six-months ended April 30, 2023 ($ amounts in thousands):

	Land Development Joint Ventures		Rental Property Joint Ventures
Number of unconsolidated joint ventures entered into during the period	1		2
Investment balance at April 30, 2023	$	11,755	$	4,795

The table below provides information on joint ventures entered into during the six-months ended April 30, 2022 ($ amounts in thousands):

	Land Development Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures
Number of unconsolidated joint ventures entered into during the period	2		7		1
Investment balance at April 30, 2022	$	13,816	$	69,513	$	2,093

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Results of Operations and Intra-entity Transactions

From time to time, certain of our land development and rental property joint ventures sell assets to unrelated parties or to our joint venture partner. None of our joint ventures sold assets in the three or six-month periods ended April 30, 2023 or the three-month period ended April 30, 2022. In the six-month period ended April 30, 2022, one of our joint ventures sold its assets and we recognized $21.0 million in “Income from unconsolidated entities” on our Condensed Consolidated Statements of Operations and Comprehensive Income.

There were no other-than-temporary impairment charges recognized in the three-month or six-month periods ended April 30, 2023 and 2022.

In the three-month periods ended April 30, 2023 and 2022, we purchased land from unconsolidated entities, principally related to our acquisition of lots from our Land Development Joint Ventures, totaling $52.4 million and $14.1 million, respectively. In the six-month periods ended April 30, 2023 and 2022, we purchased land from unconsolidated entities, principally related to our acquisition of lots from our Land Development Joint Ventures, totaling $69.1 million and $37.9 million, respectively. Our share of income from the lots we acquired was insignificant in each period. In the three-month periods ended April 30, 2023 and 2022, we sold land to unconsolidated entities, which principally involved land sales to our Rental Property Joint Ventures, totaling $8.2 million and $73.9 million, respectively. In the six-month periods ended April 30, 2023 and 2022, we sold land to unconsolidated entities, which principally involved land sales to our Rental Property Joint Ventures, totaling $8.2 million and $151.9 million, respectively. These amounts are included in “Land sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income and are generally sold at or near our land basis.

Guarantees

The unconsolidated entities in which we have investments generally finance their activities with a combination of partner equity and debt financing. In some instances, we have guaranteed portions of debt of unconsolidated entities. These guarantees may include any or all of the following: (i) project completion guarantees, including any cost overruns; (ii) repayment guarantees, generally covering a percentage of the outstanding loan; (iii) carry cost guarantees, which cover costs such as interest, real estate taxes, and insurance; (iv) an environmental indemnity provided to the lender that holds the lender harmless from and against losses arising from the discharge of hazardous materials from the property and non-compliance with applicable environmental laws; and (v) indemnification of the lender from “bad boy acts” of the unconsolidated entity or its partners.

In some instances, we and our joint venture partner have provided joint and several guarantees in connection with loans to unconsolidated entities. In these situations, we generally seek to implement a reimbursement agreement with our partner that provides that neither party is responsible for more than its proportionate share or agreed upon share of the guarantee; however, we are not always successful. In addition, if the joint venture partner does not have adequate financial resources to meet its obligations under such a reimbursement agreement, we may be liable for more than our proportionate share.

We believe that, as of April 30, 2023, in the event we become legally obligated to perform under a guarantee of an obligation of an unconsolidated entity due to a triggering event, the collateral in such entity should be sufficient to repay a significant portion of the obligation. If it is not, we and our partners would need to contribute additional capital to the venture.

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Information with respect to certain of the Company’s unconsolidated entities’ outstanding debt obligations, loan commitments and our guarantees thereon are as follows ($ amounts in thousands):

	April 30, 2023		October 31, 2022
Loan commitments in the aggregate	$	3,181,400	$	2,858,800
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1)	$	654,400	$	597,800
Debt obligations borrowed in the aggregate	$	1,436,200	$	1,110,900
Our maximum estimated exposure under repayment and carry cost guarantees of the debt obligations borrowed	$	487,600	$	390,500
Estimated fair value of guarantees provided by us related to debt and other obligations	$	19,000	$	16,900
Terms of guarantees	1 month - 3.9 years		1 month - 3.7 years

(1)    At April 30, 2023 and October 31, 2022, our maximum estimated exposure under repayment and carry cost guarantees includes approximately $95.0 million related to our unconsolidated Joint Venture VIEs.

The maximum exposure estimates presented above do not take into account any recoveries from the underlying collateral or any reimbursement from our partners. In addition, they do not include any potential exposures related to project completion guarantees or the indemnities noted above, which are not estimable. We have not made payments under any of the outstanding guarantees, nor have we been called upon to do so.

Variable Interest Entities

We have both unconsolidated and consolidated joint venture-related variable interests in VIEs. Information regarding our involvement in unconsolidated joint-venture related variable interests in VIEs has been disclosed throughout information presented above.

The table below provides information as of April 30, 2023 and October 31, 2022, regarding our consolidated joint venture-related variable interests in VIEs ($ amounts in thousands):

	Balance Sheet Classification	April 30, 2023		October 31, 2022
Number of Joint Venture VIEs that the Company is the primary beneficiary and consolidates		6		5
Carrying value of consolidated VIEs assets	Inventory and investments in unconsolidated entities	$	84,300	$	81,300
Our partners’ interests in consolidated VIEs	Noncontrolling interest	$	9,600	$	9,700

Our ownership interest in the above consolidated Joint Venture VIEs ranges from 80% to 98%.

As shown above, we are the primary beneficiary of certain VIEs due to our controlling financial interest in such ventures as we have the power to direct the activities that most significantly impact the joint ventures’ performance and the obligation to absorb expected losses or receive benefits from the joint ventures. The assets of these VIEs can only be used to settle the obligations of the VIEs. In addition, in certain of the joint ventures, in the event additional contributions are required to be funded to the joint ventures prior to the admission of any additional investor at a future date, we will fund 100% of such contributions, including our partner’s pro rata share, which we expect would be funded through an interest-bearing loan. For other VIEs, we are not the primary beneficiary because the power to direct the activities of such VIEs that most significantly impact their performance was either shared by us and such VIEs’ other partners or such activities were controlled by our partner. For VIEs where the power to direct significant activities is shared, business plans, budgets, and other major decisions are required to be unanimously approved by all partners. Management and other fees earned by us are nominal and believed to be at market rates, and there is no significant economic disproportionality between us and other partners.

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Joint Venture Condensed Combined Financial Information

The Condensed Combined Balance Sheets, as of the dates indicated, and the Condensed Combined Statements of Operations, for the periods indicated, for the unconsolidated entities in which we have an investment are included below (in thousands):

Condensed Combined Balance Sheets:

	April 30, 2023		October 31, 2022
Cash and cash equivalents	$	135,511	$	254,884
Inventory	1,342,879		1,256,215
Loans receivable – net	44,807		48,217
Rental properties	1,887,721		1,702,690
Rental properties under development	1,596,007		1,413,607
Other assets	364,735		305,250
Total assets	$	5,371,660	$	4,980,863
Debt – net of deferred financing costs	$	2,555,116	$	2,248,754
Other liabilities	392,710		399,818
Partners’ equity	2,423,834		2,332,291
Total liabilities and equity	$	5,371,660	$	4,980,863
Company’s net investment in unconsolidated entities (1)	$	887,643	$	852,314

(1)    Our underlying equity in the net assets of the unconsolidated entities was less than our net investment in unconsolidated entities by $4.4 million and $18.5 million as of April 30, 2023 and October 31, 2022, respectively, and these differences are primarily a result of unrealized gains on our retained joint venture interests; distributions from entities in excess of the carrying amount of our net investment; interest capitalized on our investments; other than temporary impairments we have recognized; gains recognized from the sale of our ownership interests; and the estimated fair value of the guarantees provided to the joint ventures.

Condensed Combined Statements of Operations:

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Revenues	$	125,397	$	130,771	$	237,116	$	286,523
Cost of revenues	78,613		86,219		137,966		194,701
Other expenses	56,655		39,172		119,729		82,776
Total expenses	135,268		125,391		257,695		277,477
Loss on disposition of loans and real estate owned	—		—		—		(113)
(Loss) income from operations	(9,871)		5,380		(20,579)		8,933
Other (loss) income (2)	(2,276)		7,064		(3,632)		40,410
(Loss) income before income taxes	(12,147)		12,444		(24,211)		49,343
Income tax (benefit) expense	(148)		74		(166)		156
Net (loss) income	(11,999)		12,370		(24,045)		49,187
Company’s (loss) income from unconsolidated entities (3)	$	(5,302)	$	2,933	$	(9,735)	$	24,970

(2)    The six months ended April 30, 2022 includes $29.9 million, related to the sale of assets by our Rental Property Joint Ventures.

(3)    Differences between our (loss) income from unconsolidated entities and the underlying net (loss) income of the entities are primarily a result of distributions from entities in excess of the carrying amount of our investment; promote earned on the gains recognized by joint ventures and those promoted cash flows being distributed; other than temporary impairments we have recognized; recoveries of previously incurred charges; unrealized gains on our retained joint venture interests; gains recognized from the sale of our investment to our joint venture partner; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired.

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4. Receivables, Prepaid Expenses, and Other Assets

Receivables, prepaid expenses, and other assets at April 30, 2023 and October 31, 2022, consisted of the following (amounts in thousands):

	April 30, 2023		October 31, 2022
Expected recoveries from insurance carriers and others	$	35,873	$	41,527
Improvement cost receivable	57,190		60,812
Escrow cash held by our wholly owned captive title company	47,716		51,796
Properties held for rental apartment and commercial development	261,980		224,593
Prepaid expenses	28,312		44,307
Right-of-use asset	118,803		116,660
Derivative assets	37,493		71,929
Other	110,245		135,604
	$	697,612	$	747,228

5. Loans Payable, Senior Notes, and Mortgage Company Loan Facility

Loans Payable

At April 30, 2023 and October 31, 2022, loans payable consisted of the following (amounts in thousands):

	April 30, 2023		October 31, 2022
Senior unsecured term loan	$	650,000	$	650,000
Loans payable – other	489,869		537,043
Deferred issuance costs	(3,634)		(1,768)
	$	1,136,235	$	1,185,275

Senior Unsecured Term Loan

We are party to a $650.0 million senior unsecured term loan facility (the “Term Loan Facility”) with a syndicate of banks. On February 14, 2023, we entered into an amendment to the Term Loan Facility to extend the maturity date of $487.5 million of outstanding term loans to February 14, 2028, with $60.9 million due on November 1, 2026 and the remaining $101.6 million due on November 1, 2025. In addition, this amendment replaced the LIBOR-based interest rate provisions applicable to borrowings under the Term Loan Facility with Secured Overnight Financing Rate (“SOFR”)-based interest rate provisions. At April 30, 2023, other than $101.6 million of term loans scheduled to mature on November 1, 2025 and the $60.9 million scheduled to mature on November 1, 2026, there were no payments required before the final maturity date on the Term Loan Facility. At April 30, 2023, the interest rate on the Term Loan Facility was 5.95% per annum. We and substantially all of our 100%-owned home building subsidiaries are guarantors under the Term Loan Facility. The Term Loan Facility contains substantially the same financial covenants as the New Revolving Credit Facility described below.

In November 2020, we entered into five interest rate swap transactions to hedge $400.0 million of the Term Loan Facility. The interest rate swaps effectively fix the interest cost on the $400.0 million at 0.369% plus the spread set forth in the pricing schedule in the Term Loan Facility through October 2025. The spread at April 30, 2023 was 1.15%. These interest rate swaps were designated as cash flow hedges.

Revolving Credit Facility

On February 14, 2023, we entered into a new five-year $1.905 billion senior unsecured revolving credit facility (the “New Revolving Credit Facility”) with a syndicate of banks that is scheduled to mature on February 14, 2028. The New Revolving Credit Facility replaced our existing $1.905 billion revolving credit facility, which was terminated in connection with the execution of the new agreement. The New Revolving Credit Facility provides us with a committed borrowing capacity of $1.905 billion, which we have the ability to increase up to $3.00 billion with the consent of lenders. The terms of the New Revolving Credit Facility are substantially the same as the prior revolving credit facility, except that the LIBOR-based interest rate provisions have been replaced with SOFR-based provisions. Toll Brothers, Inc. and substantially all of its home building subsidiaries are guarantors of the borrower’s obligations under the New Revolving Credit Facility.

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Under the terms of the New Revolving Credit Facility, at April 30, 2023, our maximum leverage ratio, as defined, was not permitted to exceed 1.75 to 1.00, and we were required to maintain a minimum tangible net worth, as defined, of no less than approximately $4.04 billion. Under the terms of the New Revolving Credit Facility, at April 30, 2023, our leverage ratio was approximately 0.32 to 1.00, and our tangible net worth was approximately $6.37 billion. Based upon the terms of the New Revolving Credit Facility, our ability to repurchase our common stock was limited to approximately $3.63 billion as of April 30, 2023. In addition, under the provisions of the New Revolving Credit Facility, our ability to pay cash dividends was limited to approximately $2.33 billion as of April 30, 2023.

At April 30, 2023, we had no outstanding borrowings under the New Revolving Credit Facility and had approximately $116.0 million of outstanding letters of credit that were issued under the New Revolving Credit Facility. At April 30, 2023, the interest rate on outstanding borrowings under the New Revolving Credit Facility would have been 6.10% per annum.

Loans Payable – Other

“Loans payable – other” primarily represents purchase money mortgages on properties we acquired that the seller had financed, project-level financing, and various revenue bonds that were issued by government entities on our behalf to finance community infrastructure and our manufacturing facilities. At April 30, 2023, the weighted-average interest rate on “Loans payable – other” was 4.22% per annum.

Senior Notes

At April 30, 2023, we had four issues of senior notes outstanding with an aggregate principal amount of $1.60 billion.

In our second quarter of fiscal 2023, we redeemed all $400.0 million principal amount of 4.375% Senior Notes due April 15, 2023, at par, plus accrued interest.

In our first quarter of fiscal 2022, we redeemed the remaining $409.9 million principal amount of 5.875% Senior Notes due February 15, 2022, at par, plus accrued interest.

Mortgage Company Loan Facility

Toll Brothers Mortgage Company (“TBMC”), our wholly owned mortgage subsidiary, has a mortgage warehousing agreement (the “Warehousing Agreement”) with a bank, which has been amended from time to time, to finance the origination of mortgage loans by TBMC. The Warehousing Agreement is accounted for as a secured borrowing under ASC 860, “Transfers and Servicing.” The Warehousing Agreement provides for loan purchases up to $75.0 million, subject to certain sublimits. In addition, the Warehousing Agreement provides for an accordion feature under which TBMC may request that the aggregate commitments under the Warehousing Agreement be increased to an amount up to $150.0 million for a short period of time. The Warehousing Agreement was set to expire, as amended, on March 31, 2023, and borrowings thereunder bore interest at the Bloomberg Short-Term Bank Yield Index Rate (“BSBY”) plus 1.75% per annum (with a BSBY floor of 0.50%). In March 2023, the Warehousing Agreement was amended to extend the expiration date to March 30, 2024 and borrowings thereunder bear interest at BSBY plus 1.75% per annum (with a BSBY floor of 0.50%). At April 30, 2023, the interest rate on the Warehousing Agreement was 6.80% per annum.

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6. Accrued Expenses

Accrued expenses at April 30, 2023 and October 31, 2022 consisted of the following (amounts in thousands):

	April 30, 2023		October 31, 2022
Land, land development, and construction	$	418,048	$	334,975
Compensation and employee benefits	170,448		223,609
Escrow liability associated with our wholly owned captive title company	40,459		44,115
Self-insurance	245,687		251,576
Warranty	149,395		164,409
Lease liabilities	142,901		139,664
Deferred income	47,846		50,973
Interest	32,212		31,988
Commitments to unconsolidated entities	31,744		26,905
Other	55,457		77,773
	$	1,334,197	$	1,345,987

The table below provides, for the periods indicated, a reconciliation of the changes in our warranty accrual (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Balance, beginning of period	$	156,895	$	143,043	$	164,409	$	145,062
Additions – homes closed during the period	10,084		13,745		17,270		23,200
Change in accruals for homes closed in prior years – net	(73)		715		2,023		3,672
Charges incurred	(17,511)		(13,512)		(34,307)		(27,943)
Balance, end of period	$	149,395	$	143,991	$	149,395	$	143,991

Since fiscal 2014, we have received water intrusion claims from owners of homes built since 2002 in communities located in Pennsylvania and Delaware. Our recorded estimated repair costs to resolve these claims were approximately $44.2 million at April 30, 2023 and $46.9 million at October 31, 2022, and are included in the Warranty accrued expense above. We continue to perform review procedures to assess, among other things, the number of affected homes, whether repairs are likely to be required, and the extent of such repairs.

Our review process, conducted quarterly, includes an analysis of many factors to determine whether a claim is likely to be received and the estimated costs to resolve any such claim, including: the closing dates of the homes; the number of claims received; our inspection of homes; an estimate of the number of homes we expect to repair; the type and cost of repairs that have been performed in each community; the estimated costs to remediate pending and future claims; the expected recovery from our insurance carriers and suppliers; and the previously recorded amounts related to these claims. We also monitor legal developments relating to these types of claims and review the volume, relative merits and adjudication of claims in litigation or arbitration. Our review process includes a number of estimates that are based on assumptions with uncertain outcomes. Due to the degree of judgment required in making these estimates and the inherent uncertainty in potential outcomes, it is reasonably possible that our actual costs and recoveries could differ from those recorded and such differences could be material. In addition, due to such uncertainty, we are unable to estimate the range of any such differences.

7. Income Taxes

We recorded income tax provisions of $110.4 million and $75.2 million for the three months ended April 30, 2023 and 2022, respectively. The effective tax rate was 25.6% for the three months ended April 30, 2023, compared to 25.4% for the three months ended April 30, 2022. We recorded income tax provisions of $172.6 million and $124.1 million for the six months ended April 30, 2023 and 2022, respectively. The effective tax rate was 25.2% for the six months ended April 30, 2023, compared to 25.0% for the six months ended April 30, 2022. The income tax provisions for all periods included the provision for state income taxes, interest accrued on anticipated tax assessments, excess tax benefits related to stock-based compensation, federal energy efficient home credits and other permanent differences.

We are subject to state tax in the jurisdictions in which we operate. We estimate our state tax liability based upon the individual taxing authorities’ regulations, estimates of income by taxing jurisdiction, and our ability to utilize certain tax-saving strategies.

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Based on our estimate of the allocation of income or loss among the various taxing jurisdictions and changes in tax regulations and their impact on our tax strategies, we estimate that our state income tax rate for the full fiscal year 2023 will be approximately 5.7%. Our state income tax rate for the full fiscal year 2022 was 5.6%.

At April 30, 2023, we had $5.8 million of gross unrecognized tax benefits, including interest and penalties. If these unrecognized tax benefits were to reverse in the future, they would have a beneficial impact on our effective tax rate at that time. During the next 12 months, it is reasonably possible that our unrecognized tax benefits will change, but we are not able to provide a range of such change. The possible changes would be principally due to the expiration of tax statutes, settlements with taxing jurisdictions, increases due to new tax positions taken, and the accrual of estimated interest and penalties.

8. Stock-Based Benefit Plans

We grant stock options and various types of restricted stock units to our employees and our non-employee directors. Additionally, we have an employee stock purchase plan that allows employees to purchase our stock at a discount. Information regarding the amount of total stock-based compensation expense and tax benefit recognized by us, for the periods indicated, is as follows (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Total stock-based compensation expense recognized	$	2,641	$	3,405	$	17,025	$	17,020
Income tax benefit recognized	$	666	$	855	$	4,304	$	4,268

At April 30, 2023 and October 31, 2022, the aggregate unamortized value of unvested stock-based compensation awards was approximately $21.8 million and $15.5 million, respectively.

9. Stockholders’ Equity

Stock Repurchase Program

From time to time since fiscal 2017, our Board of Directors has renewed its authorization to repurchase up to 20 million shares of our common stock in open market transactions, privately negotiated transactions (including accelerated share repurchases), issuer tender offers or other financial arrangements or transactions. Most recently, on May 17, 2022, our Board of Directors renewed its authorization to repurchase 20 million shares of our common stock. Shares may be repurchased for general corporate purposes, including to obtain shares for the Company’s equity awards and other employee benefit plans. The Board of Directors did not fix any expiration date for this repurchase program.

The table below provides, for the periods indicated, information about our share repurchase programs:

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Number of shares purchased (in thousands)	1,443		2,205		1,630		5,219
Average price per share	$	58.14	$	48.30	$	57.20	$	56.01
Remaining authorization at April 30 (in thousands)	12,947		7,344		12,947		7,344

Cash Dividends

On March 9, 2023, our Board of Directors approved an increase in our quarterly cash dividend from $0.20 per share to $0.21 per share, which was previously increased from $0.17 to $0.20 in March 2022. During the three month periods ended April 30, 2023 and 2022, we declared and paid cash dividends of $0.21 and $0.20 per share, respectively, to our shareholders. During the six months ended April 30, 2023 and 2022, we declared and paid cash dividends of $0.41 and $0.37 per share, respectively, to our shareholders.

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Accumulated Other Comprehensive Income (Loss)

The changes in each component of accumulated other comprehensive income (loss) (“AOCI”), for the periods indicated, were as follows (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Employee Retirement Plans
Beginning balance	$	2,492	$	(5,685)	$	2,475	$	(6,024)
Losses reclassified from AOCI to net income (1)	24		451		47		903
Less: Tax benefit (2)	(6)		(113)		(12)		(226)
Net losses reclassified from AOCI to net income	18		338		35		677
Other comprehensive loss – net of tax	18		338		35		677
Ending balance	$	2,510	$	(5,347)	$	2,510	$	(5,347)
Derivative Instruments
Beginning balance	$	31,662	$	11,496	$	35,143	$	7,133
Gains (losses) on derivative instruments	588		17,616		(3,709)		23,363
Less: Tax (expense) benefit	(138)		(4,425)		948		(5,866)
Net gains (losses) on derivative instruments	450		13,191		(2,761)		17,497
(Gains) losses reclassified from AOCI to net income (3)	(1,000)		106		(1,362)		182
Less: Tax expense (benefit) (2)	253		(27)		345		(46)
Net (gains) losses reclassified from AOCI to net income	(747)		79		(1,017)		136
Other comprehensive (income) loss – net of tax	(297)		13,270		(3,778)		17,633
Ending balance	$	31,365	$	24,766	$	31,365	$	24,766
Total AOCI ending balance	$	33,875	$	19,419	$	33,875	$	19,419

(1) Reclassified to “Other income – net”

(2) Reclassified to “Income tax provision”

(3) Reclassified to “Cost of revenues – home sales”

10. Earnings per Share Information

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

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Numerator:
Net income as reported	$	320,216	$	220,593	$	511,746	$	372,497
Denominator:
Basic weighted-average shares	111,214		117,839		111,306		119,418
Common stock equivalents (1)	970		1,086		954		1,473
Diluted weighted-average shares	112,184		118,925		112,260		120,891
Other information:
Weighted-average number of antidilutive options and restricted stock units (2)	168		214		334		209
Shares issued under stock incentive and employee stock purchase plans	103		17		1,437		424

(1)    Common stock equivalents represent the dilutive effect of outstanding in-the-money stock options using the treasury stock method and shares expected to be issued upon the conversion of restricted stock units under our equity award programs.

(2)    Weighted-average number of antidilutive options and restricted stock units are based upon the average closing price of our common stock on the New York Stock Exchange for the period.

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11. Fair Value Disclosures

Financial Instruments

The table below provides, as of the dates indicated, a summary of assets/(liabilities) related to our financial instruments, measured at fair value on a recurring basis (amounts in thousands):

		Fair value
Financial Instrument	Fair value hierarchy	April 30, 2023		October 31, 2022
Residential Mortgage Loans Held for Sale	Level 2	$	112,603	$	185,150
Forward Loan Commitments — Residential Mortgage Loans Held for Sale	Level 2	$	1,396	$	9,184
Interest Rate Lock Commitments (“IRLCs”)	Level 2	$	(2,884)	$	(17,734)
Forward Loan Commitments — IRLCs	Level 2	$	2,884	$	17,734
Interest Rate Swap Contracts	Level 2	$	33,214	$	45,010

At April 30, 2023 and October 31, 2022, the carrying value of cash and cash equivalents, escrow cash held by our wholly owned captive title company, and customer deposits held in escrow approximated fair value.

The fair values of the interest rate swap contracts are included in “Receivables, prepaid expenses and other assets” in our Condensed Consolidated Balance Sheets and are determined using widely accepted valuation techniques including discounted cash flow analysis based on the expected cash flows of each swap contract. Although the Company has determined that the significant inputs, such as interest yield curve and discount rate, used to value its interest rate swap contracts fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our counterparties and our own credit risk utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of April 30, 2023, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our interest rate swap contract positions and have determined that the credit valuation adjustments were not significant to the overall valuation of our interest rate swap contracts. As a result, we have determined that our interest rate swap contracts valuations in their entirety are classified in Level 2 of the fair value hierarchy.

Mortgage Loans Held for Sale

At the end of the reporting period, we determine the fair value of our mortgage loans held for sale and the forward loan commitments we have entered into as a hedge against the interest rate risk of our mortgage loans and commitments using the market approach to determine fair value.

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

	Aggregate unpaid principal balance		Fair value		Fair value greater (less) than principal balance
At April 30, 2023	$	115,286	$	112,603	$	(2,683)
At October 31, 2022	$	193,746	$	185,150	$	(8,596)

Inventory

We recognize inventory impairment charges and land 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. Estimated fair value is primarily determined by discounting the estimated future cash flow of each community. In determining the fair value related to land impairments, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. We record land impairments related to land parcels we plan to sell to third parties within land sales and other cost of revenues. See Note 1, “Significant Accounting Policies – Inventory,” in our 2022 Form 10-K for additional information regarding our methodology for determining fair value. Impairments on operating communities were insignificant during the three-month and six-month periods ended April 30, 2023 and 2022 and, accordingly, we did not disclose the ranges of certain quantitative unobservable inputs utilized in determining the fair value of such impaired operating communities.

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Debt

The table below provides, as of the dates indicated, the book value, excluding any bond discounts, premiums, and deferred issuance costs, and estimated fair value of our debt (amounts in thousands):

		April 30, 2023				October 31, 2022
	Fair value hierarchy	Book value		Estimated fair value		Book value		Estimated fair value
Loans payable (1)	Level 2	$	1,139,869	$	1,123,766	$	1,187,043	$	1,180,893
Senior notes (2)	Level 1	1,600,000		1,536,985		2,000,000		1,822,255
Mortgage company loan facility (3)	Level 2	102,489		102,489		148,863		148,863
		$	2,842,358	$	2,763,240	$	3,335,906	$	3,152,011

(1)    The estimated fair value of loans payable was based upon contractual cash flows discounted at interest rates that we believed were available to us for loans with similar terms and remaining maturities as of the applicable valuation date.

(2)    The estimated fair value of our senior notes is based upon their market prices as of the applicable valuation date.

(3)    We believe that the carrying value of our mortgage company loan borrowings approximates their fair value.

12. Other Income – Net

The table below provides the significant components of other income – net (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Income (loss) from ancillary businesses	$	2,858	$	12,334	$	(91)	$	14,294
Management fee income earned by home building operations	659		1,037		2,062		2,375
Gain on litigation settlements – net	—		—		27,683		—
Other	6,663		(2,147)		13,441		(1,733)
Total other income – net	$	10,180	$	11,224	$	43,095	$	14,936

Income from ancillary businesses is generated by our mortgage, title, landscaping, smart home technology, Gibraltar, apartment living and golf course and country club operations. The table below provides, for the periods indicated, revenues and expenses for our ancillary businesses (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Revenues	$	33,275	$	31,890	$	61,181	$	59,586
Expenses	$	30,417	$	19,556	$	61,272	$	45,292

In the three-month and six-month periods ended April 30, 2022, our smart home technology business recognized a $9.0 million gain from a bulk sale of security monitoring accounts, which is included in income from ancillary businesses above.

In addition, in the three months ended April 30, 2023 and 2022, our apartment living operations earned fees from unconsolidated entities of $6.4 million and $4.8 million, respectively. In the six-month periods ended April 30, 2023 and 2022, our apartment living operations earned fees from unconsolidated entities of $12.6 million and $9.6 million, respectively. Fees earned by our apartment living operations are included in income from ancillary businesses.

13. Commitments and Contingencies

Legal Proceedings

We are involved in various claims and litigation arising principally in the ordinary course of business. We believe that adequate provision for resolution of all current claims and pending litigation has been made and that the disposition of these matters will not have a material adverse effect on our results of operations and liquidity or on our financial condition.

20

Land Purchase Contracts

Generally, our agreements to acquire land parcels do not require us to purchase those land parcels, although we, in some cases, forfeit any deposit balance outstanding if and when we terminate an agreement. Information regarding our land purchase contracts, as of the dates indicated, is provided in the table below (amounts in thousands):

	April 30, 2023		October 31, 2022
Aggregate purchase price:
Unrelated parties	$	4,031,720	$	4,279,660
Unconsolidated entities that the Company has investments in	33,503		42,057
Total	$	4,065,223	$	4,321,717
Deposits against aggregate purchase price	$	450,800	$	463,452
Additional cash required to acquire land	3,614,423		3,858,265
Total	$	4,065,223	$	4,321,717
Amount of additional cash required to acquire land included in accrued expenses	$	119,141	$	34,994

In addition, we expect to purchase approximately 8,400 additional home sites over a number of years from several joint ventures in which we have interests; the purchase prices of these home sites will be determined at a future date.

At April 30, 2023, we also had purchase contracts to acquire land for apartment developments of approximately $330.8 million, of which we had outstanding deposits in the amount of $13.2 million. We intend to acquire and develop these projects in joint ventures with unrelated parties in the future.

We have additional land parcels under option that have been excluded from the aggregate purchase price 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.

Investments in Unconsolidated Entities

At April 30, 2023, we had investments in a number of unconsolidated entities, were committed to invest or advance additional funds, and had guaranteed a portion of the indebtedness and/or loan commitments of these entities. See Note 3, “Investments in Unconsolidated Entities,” for more information regarding our commitments to these entities.

Surety Bonds and Letters of Credit

At April 30, 2023, we had outstanding surety bonds amounting to $836.6 million, primarily related to our obligations to governmental entities to construct improvements in our communities. We estimate that approximately $344.2 million of work remains on these improvements. We have an additional $303.9 million of surety bonds outstanding that guarantee other obligations. We do not believe that it is probable that any outstanding bonds will be drawn upon.

At April 30, 2023, we had outstanding letters of credit of $116.0 million under our New Revolving Credit Facility. These letters of credit were issued to secure various financial obligations, including insurance policy deductibles and other claims, land deposits, and security to complete improvements in communities in which we are operating. We do not believe that it is probable that any outstanding letters of credit will be drawn upon.

At April 30, 2023, we had provided financial guarantees of $25.7 million related to fronted letters of credit to secure obligations related to certain of our insurance policy deductibles and other claims.

Backlog

At April 30, 2023, we had agreements of sale outstanding to deliver 7,574 homes with an aggregate sales value of $8.38 billion.

21

Mortgage Commitments

Our mortgage subsidiary provides mortgage financing for a portion of our home closings. For those home buyers to whom our mortgage subsidiary provides mortgages, we determine whether the home buyer qualifies for the mortgage based upon information provided by the home buyer and other sources. For those home buyers who qualify, our 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, our mortgage subsidiary agrees to sell the proposed mortgage loan to one of several outside recognized mortgage financing institutions (“investors”) that is willing to honor the terms and conditions, including interest rate, committed to the home buyer. We believe that these investors have adequate financial resources to honor their commitments to our mortgage subsidiary.

Mortgage loans are sold to investors with limited recourse provisions derived from industry-standard representations and warranties in the relevant agreements. These representations and warranties primarily involve the absence of misrepresentations by the borrower or other parties, the appropriate underwriting of the loan and in some cases, a required minimum number of payments to be made by the borrower. The Company generally does not retain any other continuing interest related to mortgage loans sold in the secondary market.

Information regarding our mortgage commitments, as of the dates indicated, is provided in the table below (amounts in thousands):

	April 30, 2023		October 31, 2022
Aggregate mortgage loan commitments:
IRLCs	$	452,156	$	669,631
Non-IRLCs	2,030,535		2,429,063
Total	$	2,482,691	$	3,098,694
Investor commitments to purchase:
IRLCs	$	452,156	$	669,631
Mortgage loans held for sale	106,006		186,666
Total	$	558,162	$	856,297

14. Information on Segments

We operate in the following five geographic segments, with current operations generally located in the states listed below:

Eastern Region:

•The North region: Connecticut, Delaware, Illinois, Massachusetts, Michigan, New Jersey, New York and Pennsylvania;

•The Mid-Atlantic region: Georgia, Maryland, North Carolina, Tennessee and Virginia;

•The South region: Florida, South Carolina and Texas;

Western Region:

•The Mountain region: Arizona, Colorado, Idaho, Nevada and Utah;

•The Pacific region: California, Oregon and Washington.

Our geographic reporting segments are consistent with how our chief operating decision makers are assessing operating performance and allocating capital.

At October 31, 2022, we concluded that our City Living operations were no longer a reportable operating segment, primarily due to their insignificance as a result of the change in structure and shift in strategy. Amounts reported in prior periods have been restated to conform to the fiscal 2023 presentation. The realignment did not have any impact on our consolidated financial position, results of operations, earnings per share or cash flows for the periods presented.

22

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

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
			(restated)				(restated)
Revenues:
North	$	381,316	$	398,907	$	704,110	$	754,041
Mid-Atlantic	309,587		268,250		498,704		511,127
South	519,351		326,351		912,232		569,870
Mountain	674,234		653,558		1,154,446		1,115,858
Pacific	605,870		541,495		970,638		926,444
Total home building	2,490,358		2,188,561		4,240,130		3,877,340
Corporate and other	(260)		(2,032)		(610)		(3,459)
	2,490,098		2,186,529		4,239,520		3,873,881
Land sales and other revenues	16,881		91,012		47,628		194,741
Total consolidated	$	2,506,979	$	2,277,541	$	4,287,148	$	4,068,622
Income (loss) before income taxes:
North	$	50,922	$	50,717	$	87,556	$	96,384
Mid-Atlantic	64,428		43,837		87,351		77,285
South	88,721		42,974		141,167		65,551
Mountain	133,942		104,962		221,246		175,973
Pacific	157,524		116,743		236,501		179,798
Total home building	495,537		359,233		773,821		594,991
Corporate and other	(64,945)		(63,418)		(89,433)		(98,360)
Total consolidated	$	430,592	$	295,815	$	684,388	$	496,631

“Corporate and other” is comprised principally of general corporate expenses such as our executive offices; 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 our apartment rental development business and our high-rise urban luxury condominium business, and income from our Rental Property Joint Ventures and Gibraltar Joint Ventures.

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

	April 30, 2023		October 31, 2022
North	$	1,394,986	$	1,464,995
Mid-Atlantic	1,143,351		1,049,043
South	2,371,522		2,137,568
Mountain	2,781,482		2,785,603
Pacific	2,240,371		2,174,065
Total home building	9,931,712		9,611,274
Corporate and other	2,057,764		2,677,440
Total consolidated	$	11,989,476	$	12,288,714

“Corporate and other” is comprised principally of cash and cash equivalents, restricted cash, investments in our Rental Property Joint Ventures, expected recoveries from insurance carriers and suppliers, our Gibraltar investments and operations, manufacturing facilities, and our mortgage and title subsidiaries.

23

The amounts we have provided for inventory impairment charges and the expensing of costs that we believe not to be recoverable, for the periods indicated, which are included in home sales cost of revenues, were as follows (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
			(restated)				(restated)
North	$	290	$	443	$	431	$	769
Mid-Atlantic	5,080		706		6,320		1,145
South	30		466		481		609
Mountain	5,487		342		5,618		444
Pacific	182		235		6,223		1,458
Total consolidated	$	11,069	$	2,192	$	19,073	$	4,425

We have also recognized $4.7 million of land impairment charges included in land sales and other cost of revenues during the three-month period ended April 30, 2023, of which $2.2 million and $2.5 million were in our Pacific and Corporate and other segments, respectively. In the six-month period ended April 30, 2023, we recognized $17.7 million of land impairment charges included in land sales and other cost of revenues, of which $2.7 million, $10.3 million, $2.2 million, and $2.5 million were in our North, Mid-Atlantic, Pacific and Corporate and other segments, respectively. We recognized $5.2 million of similar charges in our North segment during the three-month or six-month periods ended April 30, 2022.

15. Supplemental Disclosure to Condensed Consolidated Statements of Cash Flows

The following are supplemental disclosures to the Condensed Consolidated Statements of Cash Flows, for the periods indicated (amounts in thousands):

	Six months ended April 30,
	2023		2022
Cash flow information:
Income tax paid – net	$	291,196	$	131,658
Noncash activity:
Cost of inventory acquired through seller financing, municipal bonds, or included in accrued expenses - net	$	110,759	$	180,576
Accrued treasury share purchases	$	—	$	8,003
Transfer of other assets to investment in unconsolidated entities - net	$	2,765	$	55,202
Transfer of other assets to property, construction and office equipment - net	$	12,268	$	—
Unrealized (loss) gain on derivatives	$	(11,796)	$	23,731
	At April 30,
	2023		2022
Cash, cash equivalents, and restricted cash
Cash and cash equivalents	$	761,945	$	535,038
Restricted cash included in receivables, prepaid expenses, and other assets	47,716		52,863
Total cash, cash equivalents, and restricted cash shown on the Condensed Consolidated Statements of Cash Flows	$	809,661	$	587,901

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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 together 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, notes thereto, and the related MD&A contained in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022 (“2022 Form 10-K”). It also should be read in conjunction with the disclosure under “Statement on Forward-Looking Information” and “Risk Factors” in this report and in our 2022 Form 10-K.

Unless otherwise stated in this report, net contracts signed represents a number or value equal to the gross number or value of contracts for the sale of homes signed during the relevant period, less the number or value of contracts canceled during the relevant period (irrespective of whether the contract was signed during the relevant period or in a prior period). Backlog consists of homes under contract but not yet delivered to our home buyers (“backlog”). Backlog conversion represents the percentage of homes delivered in the period from backlog at the beginning of the period (“backlog conversion”).

OVERVIEW

Our Business Environment and Current Outlook

In the three months ended April 30, 2023, home sales revenue increased 14% as compared to the three months ended April 30, 2022. In the quarter, we delivered 2,492 homes with an average delivered price of $999,200, as compared to 2,407 delivered homes at an average price of $908,400 in the second quarter of fiscal 2022. The increase in average delivered price and home sales revenues in the three months ended April 30, 2023 reflects the strong demand for our homes that existed through the first half of fiscal 2022, as many of the homes delivered in our second quarter of fiscal 2023 were contracted prior to the softening in demand that began in May 2022 and continued through the end of the 2022 calendar year.

Since January 2023, we have experienced an increase in demand as compared to the second half of the 2022 calendar year. In the three months ended April 30, 2023, we signed 2,333 net contracts with an aggregate value of $2.28 billion as compared to 2,874 net contracts with an aggregate value of $3.09 billion in the three months ended April 30, 2022. Although net signed contracts decreased 19% in units and 26% in dollars, respectively, on a year-over-year basis in the second quarter, this decline was primarily due to very strong levels of demand for our homes in the prior year period. Demand in the second half of calendar 2022 was negatively impacted by the steep increases in mortgage rates in 2022, as well as uncertainty regarding the direction of the economy as a result of higher inflation, the rise in interest rates and other macro-economic conditions. In recent months, mortgage rates have stabilized, which we believe has led to improved buyer confidence. In addition, the new home market has benefited from very low levels of resale inventory on the market. As a result of these factors, as well as the impact of seasonal trends and our offering targeted incentives, we experienced an increase in buyer traffic and demand at the start of calendar 2023 that has continued through our second quarter. Although is it difficult to predict the near-term direction of interest rates, consumer confidence and the overall economy, and their potential impacts on new home demand, we believe that over the long term we will continue to benefit from strong housing market fundamentals, including demographic and migration trends and the overall shortage of homes for sale in the United States.

Our backlog at April 30, 2023 was 7,574 homes and $8.38 billion, down 36% in units and 28% in dollars as compared to our backlog at April 30, 2022. Although we have experienced modest improvements in build times (the time it takes from contract signing to delivery of the completed home) over the six months ended April 30, 2023, build times remain extended due to the impacts of supply chain, labor and other disruptions that have impacted the construction industry in recent years.

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Financial and Operational Highlights

In the three-month period ended April 30, 2023, we recognized $2.51 billion of revenues, consisting of $2.49 billion of home sales revenue and $16.9 million of land sales and other revenue, and net income of $320.2 million, as compared to $2.28 billion of revenues, consisting of $2.19 billion of home sales revenue and $91.0 million of land sales and other revenue, and $220.6 million of net income in the three-month period ended April 30, 2022.

In the three-month periods ended April 30, 2023 and 2022, the value of net contracts signed was $2.28 billion (2,333 homes) and $3.09 billion (2,874 homes), respectively.

In the six-month period ended April 30, 2023, we recognized $4.29 billion of revenues, consisting of $4.24 billion of home sales revenues and $47.6 million of land sales and other revenues, and net income of $511.7 million, as compared to $4.07 billion of revenues, consisting of $3.87 billion of home sales revenues and $194.7 million of land sales and other revenues, and $372.5 million of net income in the six-month period ended April 30, 2022.

In the six-month periods ended April 30, 2023 and 2022, the value of net contracts signed was $3.73 billion (3,794 homes) and $6.08 billion (5,803 homes), respectively.

The value of our backlog at April 30, 2023 was $8.38 billion (7,574 homes), as compared to our backlog at April 30, 2022 of $11.71 billion (11,768 homes). Our backlog at October 31, 2022 was $8.87 billion (8,098 homes), as compared to backlog of $9.50 billion (10,302 homes) at October 31, 2021.

At April 30, 2023, we had $761.9 million of cash and cash equivalents on hand and approximately $1.79 billion available under our $1.905 billion revolving credit facility. On February 14, 2023, we entered into a new $1.905 billion senior unsecured revolving credit facility that is scheduled to terminate on February 14, 2028 (the “New Revolving Credit Facility”), which replaced our existing $1.905 revolving credit facility. At April 30, 2023, we had no borrowings and we had approximately $116.0 million of outstanding letters of credit under the New Revolving Credit Facility. In addition, we entered into an amendment to the Term Loan Facility to extend the maturity date of $487.5 million of outstanding term loans to February 14, 2028, with $60.9 million due on November 1, 2026 and the remaining $101.6 million due on November 1, 2025.

At April 30, 2023, we owned or controlled through options approximately 71,300 home sites, as compared to approximately 76,000 at October 31, 2022; and approximately 80,900 at October 31, 2021. Of the approximately 71,300 total home sites that we owned or controlled through options at April 30, 2023, we owned approximately 36,300 and controlled approximately 35,000 through options. Of the 36,300 home sites owned, approximately 17,900 were substantially improved. In addition, as of April 30, 2023, we expect to purchase approximately 8,400 additional home sites over several years from certain of the joint ventures in which we have interests, at prices to be determined.

At April 30, 2023, we were selling from 350 communities, compared to 348 at October 31, 2022; and 328 at April 30, 2022.

At April 30, 2023, our total stockholders’ equity and our debt to total capitalization ratio were $6.42 billion and 0.31 to 1.00, respectively.

26

RESULTS OF OPERATIONS – OVERVIEW

The following table compares certain items in our Condensed Consolidated Statements of Operations and Comprehensive Income and other supplemental information for the three months and six months ended April 30, 2023 and 2022 ($ amounts in millions, unless otherwise stated). For more information regarding results of operations by segment, see “Segments” in this MD&A.

	Three months ended April 30,								Six months ended April 30,
	2023			2022			% Change		2023			2022			% Change
Revenues:
Home sales	$	2,490.1		$	2,186.5		14	%	$	4,239.5		$	3,873.9		9	%
Land sales and other	16.9			91.0					47.6			194.7
	2,507.0			2,277.5			10	%	4,287.1			4,068.6			5	%
Cost of revenues:
Home sales	1,832.9			1,659.3			10	%	3,133.8			2,948.8			6	%
Land sales and other	20.9			93.0					63.3			192.6
	1,853.7			1,752.2			6	%	3,197.1			3,141.4			2	%
Selling, general and administrative	227.5			243.6			(7)	%	439.0			470.5			(7)	%
Income from operations	425.7			281.7			51	%	651.0			456.7			43	%
Other
(Loss) income from unconsolidated entities	(5.3)			2.9			(281)	%	(9.7)			25.0			(139)	%
Other income – net	10.2			11.2			(9)	%	43.1			14.9			189	%
Income before income taxes	430.6			295.8			46	%	684.4			496.6			38	%
Income tax provision	110.4			75.2			47	%	172.6			124.1			39	%
Net income	$	320.2		$	220.6		45	%	$	511.7		$	372.5		37	%
Supplemental information:
Home sales cost of revenues as a percentage of home sales revenues	73.6		%	75.9		%			73.9		%	76.1		%
Land sales and other cost of revenues as a percentage of land sales and other revenues	123.5		%	102.2		%			132.9		%	98.9		%
SG&A as a percentage of home sale revenues	9.1		%	11.1		%			10.4		%	12.1		%
Effective tax rate	25.6		%	25.4		%			25.2		%	25.0		%
Deliveries – units	2,492			2,407			4	%	4,318			4,336			—	%
Deliveries – average delivered price (in ‘000s)	$	999.2		$	908.4		10	%	$	981.8		$	893.4		10	%
Net contracts signed – value	$	2,275.3		$	3,090.3		(26)	%	$	3,729.5		$	6,083.3		(39)	%
Net contracts signed – units	2,333			2,874			(19)	%	3,794			5,803			(35)	%
Net contracts signed – average contracted price (in ‘000s)	$	975.3		$	1,075.2		(9)	%	$	983.0		$	1,048.3		(6)	%
	At April 30,								At October 31,
	2023			2022			% Change		2022			2021			% Change
Backlog – value	$	8,376.3		$	11,706.2		(28)	%	$	8,874.1		$	9,499.1		(7)	%
Backlog – units	7,574			11,768			(36)	%	8,098			10,302			(21)	%
Backlog – average contracted price (in ‘000s)	$	1,105.9		$	994.7		11	%	$	1,095.8		$	922.1		19	%

Note: Due to rounding, amounts may not add. “Net contracts signed – value” is net of all cancellations that occurred in the period. It includes the value of each binding agreement of sale that was signed in the period, plus the value of all options that were selected during the period, regardless of when the initial agreement of sale related to such options was signed.

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Home Sales Revenues and Home Sales Cost of Revenues

Three months ended April 30, 2023 compared to the three months ended April 30, 2022

The increase in home sale revenues for the three months ended April 30, 2023, as compared to the three months ended April 30, 2022, was attributable to a 10% increase in the average price of homes delivered and a 4% increase in the number of homes delivered. The increase in the average delivered home price was mainly due to sales price increases as well as a shift in the number of homes delivered to more expensive areas and/or products, most notably in the North and Mid-Atlantic regions. The increase in the number of homes delivered in the three months ended April 30, 2023 was primarily due to more deliveries of quick move-in (or “spec”) homes, coupled with a higher backlog conversion in the three months ended April 30, 2023 compared to the three months ended April 30, 2022, primarily as a result an improvement in build times. These factors are offset, in part, by a decrease in the number of homes in backlog at October 31, 2022, as compared to the number of homes in backlog at October 31, 2021, most significantly in the North and Mountain regions.

The decrease in home sales cost of revenues, as a percentage of home sales revenues, in the three months ended April 30, 2023, as compared to the three months ended April 30, 2022, was principally due to a shift in the mix of revenues to higher margin products/areas, sales price increases outpacing cost increases, offset, in part, by higher inventory impairment charges in the fiscal 2023 period. In addition, interest expense as a percentage of home sales revenues was lower in the fiscal 2023 period. In the three months ended April 30, 2023 and 2022, interest expense, as a percentage of home sales revenues, was 1.5% and 1.9%, respectively.

Six months ended April 30, 2023 compared to the six months ended April 30, 2022

The increase in home sale revenues for the six months ended April 30, 2023, as compared to the six months ended April 30, 2022, was primarily attributable to a 10% increase in the average price of homes delivered. The increase in the average delivered home price was mainly due to sales price increases, as well as an increase in homes delivered in more expensive product types/geographic regions.

The decrease in home sales cost of revenues, as a percentage of home sales revenues, for the six months ended April 30, 2023, as compared to the six months ended April 30, 2022, was principally due to a shift in the mix of revenues to higher margin products/areas, sales price increases outpacing cost increases, and lower interest expense as a percentage of home sales revenues, offset, in part, by higher inventory impairment charges in the fiscal 2023 period. In the six months ended April 30, 2023 and 2022, interest expense, as a percentage of home sales revenues, was 1.5% and 1.9%, respectively.

Land Sales and Other Revenues and Land Sales and Other Cost of Revenues

Our revenues from land sales and other generally consist of the following: (1) land sales to joint ventures in which we retain an interest; (2) lot sales to third-party builders within our master-planned communities; (3) bulk sales to third parties of land we have decided no longer meets our development criteria; and (4) sales of commercial and retail properties generally located at our City Living buildings. Land sales to joint ventures in which we retain an interest are generally sold at our land basis and therefore little to no gross margin is earned on these sales. The increase in land sales and other cost of revenues as a percentage of land sales and other revenues was primarily due to $4.7 million and $17.7 million of impairment charges recognized in the three months and six months ended April 30, 2023, respectively, in connection with planned land sales. This compares to $5.2 million of land sales and other impairment charges recognized in both the three months and six months ended April 30, 2022.

Selling, General and Administrative Expenses (“SG&A”)

SG&A spending decreased by $16.1 million in the three-month period ended April 30, 2023, as compared to the three-month period ended April 30, 2022. As a percentage of home sales revenues, SG&A was 9.1% in the three months ended April 30, 2023, as compared to 11.1% in the three months ended April 30, 2022. The decrease in SG&A expenditures was due primarily to reduced commissions and marketing spend in the fiscal 2023 period, coupled with lower headcount and the impact of other fixed cost control measures. The decrease in SG&A as a percentage of revenues was due to lower SG&A spending relative to the 14% increase in revenues.

SG&A spending decreased by $31.5 million in the fiscal 2023 six-month period, as compared to the fiscal 2022 six-month period. As a percentage of home sales revenues, SG&A was 10.4% in the fiscal 2023 period, as compared to 12.1% in the fiscal 2022 period. The dollar decrease in SG&A was primarily due to reduced commissions and marketing spend in the fiscal 2023 period, coupled with lower headcount and the impact of other fixed cost control measures. The decrease in SG&A as a percentage of revenues was due to revenues increasing 9% year-over-year in the fiscal 2023 period, while SG&A spending decreased 7%. The reduction in SG&A, as a percentage of revenues, was primarily due to reduced headcount, commissions and marketing spend in the fiscal 2023 six-month period, as compared to the fiscal 2022 six-month period.

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Income from Unconsolidated Entities

We have investments in joint ventures to (i) develop land for the joint venture participants and for sale to outside builders (“Land Development Joint Ventures”); (ii) develop for-sale homes (“Home Building Joint Ventures”); (iii) develop luxury for-rent residential apartments and single family homes, commercial space, and a hotel (“Rental Property Joint Ventures”); and (iv) invest in distressed loans and real estate and provide financing and land banking to residential builders and developers for the acquisition and development of land and home sites (“Gibraltar Joint Ventures”).

We recognize our proportionate share of the earnings and losses from these unconsolidated entities. Many of our unconsolidated entities are land development projects, high-rise/mid-rise condominium construction projects, or for-rent apartment and for-rent single-family home projects, which do not generate revenues and earnings for a number of years during the development of the properties. Once development is complete for land development projects and high-rise/mid-rise condominium construction projects, these unconsolidated entities will generally, over a relatively short period of time, generate revenues and earnings until all of the assets of the entity are sold. Further, once for-rent apartments and for-rent single-family home projects are complete and stabilized, we may monetize a portion of these projects through a recapitalization or a sale of all or a portion of our ownership interest in the joint venture, generally resulting in an income-producing event. Because of the long development periods associated with these entities, the earnings recognized from these entities may vary significantly from quarter to quarter and year to year.

In the three-month period ended April 30, 2023, we recognized a loss from unconsolidated entities of $5.3 million as compared to income of $2.9 million in the prior year period. This $8.2 million decrease was primarily due to higher losses by one of our Rental Property Joint Ventures that is currently in the lease-up phase, losses incurred by Home Building Joint Ventures that were formed during the three-months ended October 31, 2022, and lower earnings from a Land Development Joint Venture due to reduced lot sales.

In the six-month period ended April 30, 2023, we recognized a loss from unconsolidated entities of $9.7 million, as compared to income of $25.0 million in the prior year period. This decrease of $34.7 million was primarily due to a $21.0 million gain in the fiscal 2022 period related to a property sale by one of our Rental Property Joint Ventures, higher losses by one of our Rental Property Joint Ventures that is currently in the lease-up phase, losses incurred by a Home Building Joint Venture that was formed during the three-months ended October 31, 2022, and lower earnings from a Land Development Joint Venture due to reduced lot sales.

Other Income – Net

The table below provides, for the periods indicated, the components of “Other income – net” (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Income (loss) from ancillary businesses	$	2,858	$	12,334	$	(91)	$	14,294
Management fee income earned by home building operations	659		1,037		2,062		2,375
Gain on litigation settlements – net	—		—		27,683		—
Other	6,663		(2,147)		13,441		(1,733)
Total other income – net	$	10,180	$	11,224	$	43,095	$	14,936

The decrease in income from ancillary businesses in the three months ended April 30, 2023, as compared to the three months ended April 30, 2022, was mainly due to the fiscal 2022 period benefiting from the bulk sale of security monitoring accounts by our smart home technologies business, which resulted in gain of $9.0 million. In addition, the fiscal 2023 period had lower income from our mortgage operations due to lower volume and reduced spreads, offset, in part, by lower operating losses incurred in our apartment living operations.

The decrease in income from ancillary businesses in the six months ended April 30, 2023 was mainly due to the fiscal 2022 period benefiting from the bulk sale of security monitoring accounts by our smart home technologies business, which resulted in gain of $9.0 million. In addition, the fiscal 2023 period had lower income from our mortgage operations due to lower volume and reduced spreads, offset, in part, by lower operating losses incurred in our apartment living operations.

The decreases in management fee income earned by our home building operations in the three and six month periods ended April 30, 2023 were primarily related to a decrease in fees from two of our land development joint ventures.

The gain on litigation settlements - net in six months ended April 30, 2023 primarily relates to the settlement of an open insurance claim. No similar gains occurred in the fiscal 2022 periods.

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The increase in “other” in the three and six month periods ended April 30, 2023 was primarily due to an increase in interest income as a result of higher interest rates.

Income Before Income Taxes

For the three-month period ended April 30, 2023, we reported income before income taxes of $430.6 million, as compared to $295.8 million in the three-month period ended April 30, 2022.

For the six-month period ended April 30, 2023, we reported income before income taxes of $684.4 million, as compared to $496.6 million in the three-month period ended April 30, 2022.

Income Tax Provision

In the three-month periods ended April 30, 2023 and April 30, 2022, we recognized income tax provisions of $110.4 million and $75.2 million, respectively. Based upon the federal statutory rate of 21.0% for the fiscal 2023 and 2022 periods, our federal tax provisions would have been $90.4 million and $62.1 million, in the three-month periods ended April 30, 2023 and 2022, respectively. The difference between the tax provisions recognized and the tax provision based on the federal statutory rate was mainly due to the provision for state income taxes and permanent differences, offset, in part, by energy tax credits.

We recognized income tax provisions of $172.6 million and $124.1 million in the six-month periods ended April 30, 2023 and April 30, 2022, respectively. Based upon the federal statutory rate of 21.0% for the fiscal 2023 and 2022 periods, our federal tax provisions would have been $143.7 million and $104.3 million, in the six-month periods ended April 30, 2023 and April 30, 2022, respectively. The difference between the tax provisions recognized and the tax provision based on the federal statutory rate was mainly due to the provision for state income taxes and permanent differences, offset, in part, by energy tax credits and excess tax benefits related to stock-based compensation.

Contracts

In the three-month periods ended April 30, 2023 and 2022, the value of net contracts signed was $2.28 billion (2,333 homes) and $3.09 billion (2,874 homes), respectively. The aggregate value of net contracts signed decreased $815.0 million, or 26.4%, in the three-month period ended April 30, 2023, as compared to the three-month period ended April 30, 2022. The decrease in the aggregate value of net contracts signed was due to a 9.3% decrease in the average value of each signed contract and an 18.8% decrease in the number of net contracts signed. The decrease in the average value of each signed contract is principally due to a shift in the number of contracts signed to less expensive areas and/or products and an increase in sales incentives due to a moderation in demand. The decrease in the number of net contracts signed reflects this moderation in demand, as compared to the very strong prior year period.

In the six-month periods ended April 30, 2023 and 2022, the value of net contracts signed was $3.73 billion (3,794 homes) and $6.08 billion (5,803 homes), respectively. The aggregate value of net contracts signed decreased $2.35 billion, or 38.7%, in the six-month period ended April 30, 2023, as compared to the six-month period ended April 30, 2022. The decrease in the aggregate value of net contracts signed was due to a 34.6% decrease in the number of net contracts signed and a 6.2% decrease in the average value attributed to each signed contract. The decrease in the number of net contracts signed reflects a moderation in demand from the strong prior year period. The decrease in the average value attributed to each signed contract is principally due to a shift in the number of contracts signed to less expensive areas and/or products and an increase in sales incentives due to the moderation in demand.

Backlog

The value of our backlog at April 30, 2023 decreased 28.4% to $8.38 billion (7,574 homes), as compared to $11.71 billion (11,768 homes) at April 30, 2022. Our backlog at October 31, 2022 and 2021 was $8.87 billion (8,098 homes) and $9.50 billion (10,302 homes), respectively.

For more information regarding results of operations by segment, see “Segments” in this MD&A.

CAPITAL RESOURCES AND LIQUIDITY

Funding for our business has been, and continues to be, provided principally by cash flow from operating activities before inventory additions, credit arrangements with third parties, and the public capital markets.

Our cash flows from operations generally provide us with a significant source of liquidity. Our cash flows provided by operating activities, supplemented with our short-term borrowings and long-term debt, have been sufficient to fund our operations while allowing us to invest in activities that support the long-term growth of our Company. Our primary uses of cash include inventory additions in the form of land acquisitions and deposits to obtain control of land, land development, working capital to fund day-to-day operations, and investments in existing and future unconsolidated joint ventures. We may also use

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cash to fund capital expenditures such as investments in our information technology systems. From time to time we use some or all of the remaining available cash flow to repay debt, and to fund share repurchases and dividends on our common stock. We believe our sources of cash and liquidity will continue to be adequate to fund operations, finance our strategic operating initiatives, repay debt, fund our share repurchases and pay dividends for the foreseeable future.

At April 30, 2023, we had $761.9 million of cash and cash equivalents on hand and approximately $1.79 billion available for borrowing under our revolving credit facility. On February 14, 2023, we entered into the $1.905 billion New Revolving Credit Facility with a syndicate of banks that is scheduled to mature on February 14, 2028. The New Revolving Credit Facility replaced the prior $1.905 revolving credit facility, which was terminated in connection with the execution of the new agreement. The New Revolving Credit Facility provides us with a committed borrowing capacity of $1.905 billion, which we have the ability to increase up to $3.0 billion with the consent of lenders. The terms of the New Revolving Credit Facility are substantially the same as the prior agreement, except that the LIBOR-based interest rate provisions have been replaced with SOFR-based provisions. Toll Brothers, Inc. and substantially all of its home building subsidiaries are guarantors of the borrower’s obligations under the New Revolving Credit Facility. Also on February 14, 2023, we entered into an amendment to the Term Loan Facility to extend the maturity date of $487.5 million of outstanding term loans to February 14, 2028, with $60.9 million due on November 1, 2026 and the remaining $101.6 million due on November 1, 2025.

Short-term Liquidity and Capital Resources

For at least the next twelve months, we expect our principal demand for funds will be for inventory additions in the form of land acquisition, deposits to control land and land development, operating expenses, including our general and administrative expenses, investments and funding of capital improvements, investments in existing and future unconsolidated joint ventures, community level debt repayment, common stock repurchases, and dividend payments. Demand for funds include interest and principal payments on current and future debt financing. We expect to meet our short-term liquidity requirements primarily through our cash and cash equivalents on hand and net cash flows provided by operations. Additional sources of funds include distributions from our unconsolidated joint ventures, borrowing capacity under our New Revolving Credit Facility, and borrowings from banks and other lenders.

Toll Brothers Mortgage Company (“TBMC”) has a mortgage warehousing agreement with a lender (the “Warehousing Agreement”) that provides funds for the origination of mortgage loans by TBMC. The agreement is scheduled to expire on March 30, 2024. While we intend to refinance the TBMC Warehousing Agreement prior to its maturity, there can be no assurances that it can be renewed or replaced on commercially reasonable terms upon its expiration. However, we believe we have adequate liquidity to meet TBMC’s anticipated financing needs.

We believe we will have sufficient liquidity available to fund our business needs, commitments and contractual obligations in a timely manner for the next twelve months. We may, however, seek additional financing to fund future growth or refinance our existing indebtedness through the debt capital markets, but we cannot be assured that such financing will be available on favorable terms, or at all.

Long-term Liquidity and Capital Resources

Beyond the next twelve months, our principal demands for funds will be for the payments of the principal amount of our long-term debt as it becomes due or matures, land purchases and inventory additions needed to grow our business, long-term capital investments and investments in unconsolidated joint ventures, common stock repurchases, and dividend payments.

Over the longer term, to the extent the sources of capital described above are insufficient to meet our needs, we may also conduct additional public offerings of our securities, refinance debt or dispose of certain assets to fund our operating activities and debt service. We expect these resources will be adequate to fund our ongoing operating activities as well as provide capital for investment in future land purchases and related development activities and future joint ventures.

Material Cash Requirements

We are a party to many agreements that include contractual obligations and commitments to make payments to third parties. These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the Condensed Consolidated Balance Sheet as of April 30, 2023, while others are considered future commitments. Our contractual obligations primarily consist of long-term debt and related interest payments, payments due on our mortgage company loan facility, purchase obligations related to expected acquisition of land under purchase agreements and land development agreements (many of which are secured by letters of credit or surety bonds), operating leases, and obligations under our deferred compensation plan, supplemental executive retirement plans, and 401(k) savings plans. We also enter into certain short-term lease commitments, commitments to fund our existing or future unconsolidated joint ventures, letters of credit and other purchase obligations in the normal course of business. For more information regarding our primary obligations, refer to Note 5, “Loans Payable, Senior Notes, and Mortgage Company Loan Facility,” and Note 13, “Commitments and

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Contingencies,” to the Condensed Consolidated Financial Statements for amounts outstanding as of April 30, 2023, related to debt and commitments and contingencies, respectively.

We also operate through a number of joint ventures and have undertaken various commitments as a result of those arrangements. At April 30, 2023, we had investments in these entities of $887.6 million and were committed to invest or advance up to an additional $334.6 million to these entities if they require additional funding. At April 30, 2023, we had agreed to terms for the acquisition of 338 home sites from three joint ventures for an estimated aggregate purchase price of $33.5 million. In addition, we expect to purchase approximately 8,400 additional home sites over a number of years from several joint ventures in which we have interests. The purchase price of these home sites will be determined at a future date.

The unconsolidated joint ventures in which we have investments generally finance their activities with a combination of partner equity and debt financing. In some instances, we and our joint venture partner have guaranteed debt of unconsolidated entities. These guarantees may include any or all of the following: (i) project completion guarantees, including any cost overruns; (ii) repayment guarantees, generally covering a percentage of the outstanding loan; (iii) carry cost guarantees, which cover costs such as interest, real estate taxes, and insurance; (iv) an environmental indemnity provided to the lender that holds the lender harmless from and against losses arising from the discharge of hazardous materials from the property and non-compliance with applicable environmental laws; and (v) indemnification of the lender from “bad boy acts” of the unconsolidated entity.

In these situations where we have joint and several guarantees with our joint venture partner, we generally seek to implement a reimbursement agreement with our partner that provides that neither party is responsible for more than its proportionate share or agreed-upon share of the guarantee; however, we are not always successful. In addition, if the joint venture partner does not have adequate financial resources to meet its obligations under such a reimbursement agreement, we may be liable for more than our proportionate share. We believe that, as of April 30, 2023, in the event we become legally obligated to perform under a guarantee of the obligation of an unconsolidated entity due to a triggering event, the collateral in such entity should be sufficient to repay all or a significant portion of the obligation. If it is not, we and our partners would need to contribute additional capital to the entity. At April 30, 2023, we had guaranteed the debt of certain unconsolidated entities that have loan commitments aggregating $3.18 billion, of which, if the full amount of the debt obligations were borrowed, we estimate $654.4 million to be our maximum exposure related to repayment and carry cost guarantees. At April 30, 2023, the unconsolidated entities had borrowed an aggregate of $1.44 billion, of which we estimate $487.6 million to be our maximum exposure related to repayment and carry cost guarantees. The terms of these guarantees generally range from 1 month to 3.9 years. These maximum exposure estimates do not take into account any recoveries from the underlying collateral or any reimbursement from our partners. Nor do they include any potential exposures related to project completion guarantees or the indemnities noted above, which are not estimable.

For more information regarding these joint ventures, see Note 3, “Investments in Unconsolidated Entities” in the Notes to Condensed Consolidated Financial Statements.

Debt Service Requirements

Our financing strategy is to ensure liquidity and access to capital markets, to maintain a balanced profile of debt maturities, and to manage our exposure to floating interest rate volatility.

Outside of the normal course of operations, one of our principal liquidity needs is the payment of principal and interest on outstanding indebtedness. We are required by the terms of certain loan documents to meet certain covenants, such as financial ratios and reporting requirements. As of April 30, 2023, we were in compliance with all such covenants and requirements on our term loan, credit facility and other loans payable. Refer to Note 5, “Loans Payable, Senior Notes, and Mortgage Company Loan Facility” in the Notes to the Condensed Consolidated Financial Statements.

Operating Activities

At April 30, 2023 and October 31, 2022, we had $761.9 million and $1.35 billion, respectively, of cash and cash equivalents. Cash provided by operating activities during the six-month period ended April 30, 2023 was $145.6 million. Cash provided by operating activities during the fiscal 2023 period was primarily related to net income (adjusted for stock-based compensation, impairments, depreciation and amortization, income and distributions of earnings from unconsolidated entities and deferred taxes); mortgage loans sold, net of mortgage loans originated; and a decrease in receivables, prepaid expenses, and other assets. This activity was offset, in part, an increase in inventory, a decrease in accounts payable and accrued expenses, a decrease in current income taxes - net and a decrease in customer deposits – net.

Cash used in operating activities during the six-month period ended April 30, 2022 was $205.0 million. Cash used in operating activities during the fiscal 2022 period was primarily related to an increase in inventory, an increase in current income taxes - net and an increase in receivables, prepaid expenses, and other assets. This activity was offset, in part, by net income (adjusted

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for stock-based compensation, impairments, depreciation and amortization, income and distributions of earnings from unconsolidated entities and deferred taxes); mortgage loans sold, net of mortgage loans originated; an increase in customer deposits – net and an increase in accounts payable and accrued expenses.

Investing Activities

In the six-month period ended April 30, 2023, cash used in investing activities was $99.2 million, which was primarily related to $117.2 million used to fund our investments in unconsolidated entities and $39.5 million used for the purchase of property and equipment. This activity was offset, in part, by $48.6 million of cash received as returns from our investments in unconsolidated entities and $9.0 million of cash proceeds from the sale of assets.

In the six-month period ended April 30, 2022, cash used in investing activities was $71.9 million, which was primarily related to $121.3 million used to fund our investments in unconsolidated entities and $39.1 million used for the purchase of property

and equipment. This activity was offset, in part, by $88.4 million of cash received as returns from our investments in unconsolidated entities.

Financing Activities

We used $635.3 million of cash in financing activities in the six-month period ended April 30, 2023, primarily for the redemption of $400.0 million of senior notes, payments of $118.9 million of loans payable, net of borrowings, the payment of dividends on our common stock of $46.3 million, the repurchase of $93.1 million of our common stock and payments of $5.3 million of debt issuance costs. This activity was offset, in part, by $28.3 million of proceeds related to stock-based benefit plans - net.

We used $819.7 million of cash in financing activities in the six-month period ended April 30, 2022, primarily for the redemption of $409.9 million of senior notes; the repurchase of $284.3 million of our common stock; payments of $53.3 million of loans payable, net of borrowings, the payment of dividends on our common stock of $44.3 million and payments related to noncontrolling interest - net of $25.8 million.

CRITICAL ACCOUNTING ESTIMATES

As disclosed in our 2022 Form 10-K, our most critical accounting estimates relate to inventory, cost of revenue recognition, warranty and self-insurance, and investments in unconsolidated entities. Since October 31, 2022, there have been no material changes to those critical accounting estimates.

SUPPLEMENTAL GUARANTOR INFORMATION

At April 30, 2023, our 100%-owned subsidiary, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), had issued and outstanding $1.60 billion aggregate principal amount of senior notes maturing on various dates between November 15, 2025 and November 1, 2029 (the “Senior Notes”). For further information regarding the Senior Notes, see Note 5 to our Consolidated Condensed Financial Statements under the caption “Senior Notes.”

The obligations of the Subsidiary Issuer to pay principal, premiums, if any, and interest are guaranteed jointly and severally on a senior basis by Toll Brothers, Inc. and substantially all of its 100%-owned home building subsidiaries (the “Guarantor Subsidiaries” and, together with us, the “Guarantors”). The guarantees are full and unconditional, and the Subsidiary Issuer and each of the Guarantor Subsidiaries are consolidated subsidiaries of Toll Brothers, Inc. Our non-home building subsidiaries and several of our home building subsidiaries (together, the “Non-Guarantor Subsidiaries”) do not guarantee the Senior Notes. The Subsidiary Issuer generates no operating revenues and does not have any independent operations other than the financing of our other subsidiaries by lending the proceeds of its public debt offerings, including the Senior Notes. Our home building operations are conducted almost entirely through the Guarantor Subsidiaries. Accordingly, the Subsidiary Issuer’s cash flow and ability to service the Senior Notes is dependent upon the earnings of the Company’s subsidiaries and the distribution of those earnings to the Subsidiary Issuer, whether by dividends, loans or otherwise. Holders of the Senior Notes have a direct claim only against the Subsidiary Issuer and the Guarantors. The obligations of the Guarantors under their guarantees will be limited as necessary to recognize certain defenses generally available to guarantors (including those that relate to fraudulent conveyance or transfer, voidable preference or similar laws affecting the rights of creditors generally) under applicable law.

The indentures under which the Senior Notes were issued provide that any of our subsidiaries that provide a guarantee of our obligations under the New Revolving Credit Facility will guarantee the Senior Notes. The indentures further provide that any Guarantor Subsidiary may be released from its guarantee so long as (i) no default or event of default exists or would result from release of such guarantee; (ii) the Guarantor Subsidiary being released has consolidated net worth of less than 5% of the Company’s consolidated net worth as of the end of our most recent fiscal quarter; (iii) the Guarantor Subsidiaries released from their guarantees in any fiscal year comprise in the aggregate less than 10% (or 15% if and to the extent necessary to permit the cure of a default) of our consolidated net worth as of the end of our most recent fiscal quarter; (iv) such release would not have

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a material adverse effect on ours and our subsidiaries’ home building business; and (v) the Guarantor Subsidiary is released from its guaranty under the New Revolving Credit Facility. If there are no guarantors under the New Revolving Credit Facility, all Guarantor Subsidiaries under the indentures will be released from their guarantees.

The following summarized financial information is presented for Toll Brothers, Inc., the Subsidiary Issuer, and the Guarantor Subsidiaries on a combined basis after intercompany transactions and balances have been eliminated among Toll Brothers, Inc., the Subsidiary Issuer and the Guarantor Subsidiaries, as well as their investment in, and equity in earnings from the Non-Guarantor Subsidiaries.

Summarized Balance Sheet Data (Amounts in millions):

	April 30, 2023
Assets
Cash	$	594.1
Inventory	$	8,951.7
Amount due from Non-Guarantor Subsidiaries	$	758.5
Total assets	$	11,000.7
Liabilities & Stockholders' Equity
Loans payable	$	1,099.7
Senior notes	$	1,595.7
Total liabilities	$	4,946.8
Stockholders' equity	$	6,053.8

Summarized Statement of Operations Data (Amounts in millions):

	For the six months ended April 30, 2023
Revenues	$	4,196.4
Cost of revenues	$	3,124.5
Selling, general and administrative	$	436.7
Income before income taxes	$	667.1
Net income	$	498.8

34

SEGMENTS

We operate in the following five geographic segments, with current operations generally located in the states listed below:

•The North region: Connecticut, Delaware, Illinois, Massachusetts, Michigan, New Jersey, New York and Pennsylvania;

•The Mid-Atlantic region: Georgia, Maryland, North Carolina, Tennessee and Virginia;

•The South region: Florida, South Carolina and Texas;

•The Mountain region: Arizona, Colorado, Idaho, Nevada and Utah; and

•The Pacific region: California, Oregon and Washington.

At October 31, 2022, we concluded that our City Living operations were no longer a reportable operating segment, primarily due to their insignificance as a result of the change in structure and shift in strategy. Amounts reported in prior periods have been restated to conform to the fiscal 2023 presentation. The realignment did not have any impact on our consolidated financial position, results of operations, earnings per share or cash flows for the periods presented.

The tables below summarize information related to units delivered and revenues, net contracts signed, and income (loss) before income taxes, by segment, for the periods indicated, and information related to backlog, by segment, as of the dates indicated.

Units Delivered and Revenues:

	Three months ended April 30,
	Revenues ($ in millions)						Units Delivered				Average Delivered Price ($ in thousands)
	2023		2022		% Change		2023	2022	% Change		2023		2022		% Change
			(restated)					(restated)					(restated)
North	$	381.3	$	398.9	(4)	%	408	494	(17)	%	$	934.6	$	807.5	16	%
Mid-Atlantic	309.6		268.2		15	%	274	276	(1)	%	$	1,129.9	$	971.9	16	%
South	519.4		326.4		59	%	659	447	47	%	$	788.1	$	730.1	8	%
Mountain	674.2		653.5		3	%	767	814	(6)	%	$	879.1	$	802.9	9	%
Pacific	605.9		541.5		12	%	384	376	2	%	$	1,577.8	$	1,440.1	10	%
Total home building	2,490.4		2,188.5		14	%	2,492	2,407	4	%	$	999.3	$	909.2	10	%
Other	(0.3)		(2.0)
Total home sales revenue	2,490.1		2,186.5		14	%	2,492	2,407	4	%	$	999.2	$	908.4	10	%
Land sales and other revenue	16.9		91.0
Total revenue	$	2,507.0	$	2,277.5

35

	Six months ended April 30,
	Revenues ($ in millions)						Units Delivered				Average Delivered Price ($ in thousands)
	2023		2022		% Change		2023	2022	% Change		2023		2022		% Change
			(restated)					(restated)					(restated)
North	$	704.1	$	754.0	(7)	%	765	912	(16)	%	$	920.4	$	826.8	11	%
Mid-Atlantic	498.7		511.1		(2)	%	440	552	(20)	%	$	1,133.4	$	925.9	22	%
South	912.3		569.9		60	%	1,148	794	45	%	$	794.7	$	717.8	11	%
Mountain	1,154.4		1,115.9		3	%	1,315	1,417	(7)	%	$	877.9	$	787.4	11	%
Pacific	970.6		926.5		5	%	650	661	(2)	%	$	1,493.2	$	1,401.7	7	%
Total home building	4,240.1		3,877.4		9	%	4,318	4,336	—	%	$	982.0	$	894.2	10	%
Other	(0.6)		(3.5)
Total home sales revenue	4,239.5		3,873.9		9	%	4,318	4,336	—	%	$	981.8	$	893.4	10	%
Land sales and other revenue	47.6		194.7
Total revenue	$	4,287.1	$	4,068.6

Net Contracts Signed:

	Three months ended April 30,
	Net Contract Value ($ in millions)						Net Contracted Units				Average Contracted Price ($ in thousands)
	2023		2022		% Change		2023	2022	% Change		2023		2022		% Change
			(restated)					(restated)					(restated)
North	$	366.1	$	457.9	(20)	%	396	479	(17)	%	$	924.4	$	955.8	(3)	%
Mid-Atlantic	325.4		286.6		14	%	316	254	24	%	$	1,029.7	$	1,128.4	(9)	%
South	590.9		573.7		3	%	749	616	22	%	$	789.0	$	931.3	(15)	%
Mountain	449.4		943.3		(52)	%	529	1,002	(47)	%	$	849.5	$	941.4	(10)	%
Pacific	543.5		828.8		(34)	%	343	523	(34)	%	$	1,584.6	$	1,584.7	—	%
Total consolidated	$	2,275.3	$	3,090.3	(26)	%	2,333	2,874	(19)	%	$	975.3	$	1,075.2	(9)	%

	Six months ended April 30,
	Net Contract Value ($ in millions)						Net Contracted Units				Average Contracted Price ($ in thousands)
	2023		2022		% Change		2023	2022	% Change		2023		2022		% Change
			(restated)					(restated)					(restated)
North	$	681.3	$	896.7	(24)	%	724	963	(25)	%	$	941.0	$	931.2	1	%
Mid-Atlantic	589.5		647.2		(9)	%	567	620	(9)	%	$	1,039.7	$	1,043.9	—	%
South	919.4		1,185.1		(22)	%	1,164	1,353	(14)	%	$	789.9	$	875.9	(10)	%
Mountain	713.3		1,701.4		(58)	%	828	1,801	(54)	%	$	861.5	$	944.7	(9)	%
Pacific	826.0		1,652.9		(50)	%	511	1,066	(52)	%	$	1,616.4	$	1,550.6	4	%
Total consolidated	$	3,729.5	$	6,083.3	(39)	%	3,794	5,803	(35)	%	$	983.0	$	1,048.3	(6)	%

36

Backlog:

	At April 30,
	Backlog Value ($ in millions)						Backlog Units				Average Backlog Price ($ in thousands)
	2023		2022		% Change		2023	2022	% Change		2023		2022		% Change
			(restated)					(restated)					(restated)
North	$	1,097.6	$	1,637.2	(33)	%	1,081	1,788	(40)	%	$	1,015.3	$	915.7	11	%
Mid-Atlantic	1,052.3		1,140.0		(8)	%	969	1,120	(13)	%	$	1,085.9	$	1,017.9	7	%
South	2,362.4		2,581.0		(8)	%	2,539	3,029	(16)	%	$	930.4	$	852.1	9	%
Mountain	2,161.1		3,607.7		(40)	%	2,037	3,982	(49)	%	$	1,060.9	$	906.0	17	%
Pacific	1,702.9		2,740.3		(38)	%	948	1,849	(49)	%	$	1,796.3	$	1,482.0	21	%
Total consolidated	$	8,376.3	$	11,706.2	(28)	%	7,574	11,768	(36)	%	$	1,105.9	$	994.7	11	%

	At October 31,
	Backlog Value ($ in millions)						Backlog Units				Average Backlog Price ($ in thousands)
	2022		2021		% Change		2022	2021	% Change		2022		2021		% Change
North	$	1,119.5	$	1,494.2	(25)	%	1,122	1,737	(35)	%	$	997.8	$	860.2	16	%
Mid-Atlantic	960.5		1,004.5		(4)	%	842	1,053	(20)	%	$	1,140.7	$	954.0	20	%
South	2,352.5		1,965.2		20	%	2,523	2,470	2	%	$	932.4	$	795.6	17	%
Mountain	2,597.3		3,021.9		(14)	%	2,524	3,598	(30)	%	$	1,029.0	$	839.9	23	%
Pacific	1,844.3		2,013.3		(8)	%	1,087	1,444	(25)	%	$	1,696.7	$	1,394.3	22	%
Total consolidated	$	8,874.1	$	9,499.1	(7)	%	8,098	10,302	(21)	%	$	1,095.8	$	922.1	19	%

Income (Loss) Before Income Taxes ($ amounts in millions):

	Three months ended April 30,						Six months ended April 30,
	2023		2022		% Change		2023		2022		% Change
			(restated)						(restated)
North	$	50.9	$	50.7	—	%	$	87.6	$	96.4	(9)	%
Mid-Atlantic	64.4		43.8		47	%	87.3		77.3		13	%
South	88.7		43.0		106	%	141.2		65.5		116	%
Mountain	133.9		105.0		28	%	221.2		176.0		26	%
Pacific	157.5		116.7		35	%	236.5		179.8		32	%
Total home building	495.4		359.2		38	%	773.8		595.0		30	%
Corporate and other	(64.8)		(63.4)		(2)	%	(89.4)		(98.4)		9	%
Total consolidated	$	430.6	$	295.8	46	%	$	684.4	$	496.6	38	%

“Corporate and other” is comprised principally of general corporate expenses such as our executive offices; 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 our apartment rental development business and our high-rise urban luxury condominium business; and income from our Rental Property Joint Ventures and Gibraltar Joint Ventures.

37

FISCAL 2023 COMPARED TO FISCAL 2022 (Restated)

North

	Three months ended April 30,								Six months ended April 30,
	2023			2022			Change		2023			2022			Change
Units Delivered and Revenues:
Home sales revenues ($ in millions)	$	381.3		$	398.9		(4)	%	$	704.1		$	754.0		(7)	%
Units delivered	408			494			(17)	%	765			912			(16)	%
Average delivered price ($ in thousands)	$	934.6		$	807.5		16	%	$	920.4		$	826.8		11	%
Net Contracts Signed:
Net contract value ($ in millions)	$	366.1		$	457.9		(20)	%	$	681.3		$	896.7		(24)	%
Net contracted units	396			479			(17)	%	724			963			(25)	%
Average contracted price ($ in thousands)	$	924.4		$	955.8		(3)	%	$	941.0		$	931.2		1	%
Home sales cost of revenues as a percentage of home sale revenues	80.0		%	78.1		%			79.3		%	78.0		%
Income before income taxes ($ in millions)	$	50.9		$	50.7		—	%	$	87.6		$	96.4		(9)	%
Number of selling communities at April 30,	47			55			(15)	%

The decreases in the number of homes delivered in the fiscal 2023 periods were mainly due to a decrease in the number of homes in backlog at October 31, 2022, as compared to the number of homes in backlog at October 31, 2021, offset, in part by higher backlog conversion and an increase in spec homes delivered. The increases in the average price of homes delivered in the fiscal 2023 periods were primarily due to sales price increases and a shift in the number of homes delivered to more expensive areas and/or products.

The decreases in the number of net contracts signed in the fiscal 2023 periods were mainly due to a decrease in the average number of selling communities, as well as weakened demand. The decrease in the average value of each contract signed in the three-month fiscal 2023 period was mainly due to a shift in the number of contracts signed to less expensive areas and/or products and an increase in sales incentives. The increase in the average value of each contract signed in the six-month fiscal 2023 period was mainly due to a shift in the number of contracts signed to more expensive areas and/or products.

The increase in income before income taxes in the three-month fiscal 2023 period was attributable to lower SG&A costs, offset, in part, by lower earnings from decreased revenue and higher home sales cost of revenues, as a percentage of home sale revenues. The increase in home sales cost of revenues, as a percentage of home sales revenues, in the three-month fiscal 2023 period was primarily due to a shift in product mix/areas to lower-margin areas, offset, in part, by lower interest expense as a percentage of home sales revenues. In addition, we recognized an impairment charge of $5.2 million related to office space within one of our Hoboken, New Jersey condominium projects in connection with a planned sale in the three-month fiscal 2022 period.

The decrease in income before income taxes in the six-month fiscal 2023 period was attributable to lower earnings from decreased revenue and higher home sales cost of revenues, as a percentage of home sale revenues, offset, in part, by lower SG&A costs. The increase in home sales cost of revenues, as a percentage of home sales revenues, in the six-month fiscal 2023 period was primarily due to a shift in product mix/areas to lower-margin areas, offset, in part, by lower interest expense as a percentage of home sales revenues. In addition, we recognized $2.7 million of land impairment charges during the six-month fiscal 2023 period in connection with a planned land sale. We also recorded an impairment charge of $5.2 million related to office space within one of our Hoboken, New Jersey condominium projects in connection with a planned sale in the six-month fiscal 2022 period.

38

Mid-Atlantic

	Three months ended April 30,								Six months ended April 30,
	2023			2022			Change		2023			2022			Change
Units Delivered and Revenues:
Home sales revenues ($ in millions)	$	309.6		$	268.2		15	%	$	498.7		$	511.1		(2)	%
Units delivered	274			276			(1)	%	440			552			(20)	%
Average delivered price ($ in thousands)	$	1,129.9		$	971.9		16	%	$	1,133.4		$	925.9		22	%
Net Contracts Signed:
Net contract value ($ in millions)	$	325.4		$	286.6		14	%	$	589.5		$	647.2		(9)	%
Net contracted units	316			254			24	%	567			620			(9)	%
Average contracted price ($ in thousands)	$	1,029.7		$	1,128.4		(9)	%	$	1,039.7		$	1,043.9		—	%
Home sales cost of revenues as a percentage of home sale revenues	72.9		%	76.4		%			72.9		%	76.9		%
Income before income taxes ($ in millions)	$	64.4		$	43.8		47	%	$	87.3		$	77.3		13	%
Number of selling communities at April 30,	37			35			6	%

The slight decrease in the number of homes delivered in the three-month fiscal 2023 period was mainly due to a decrease in the number of homes in backlog at October 31, 2022, as compared to the number of homes in backlog at October 31, 2021, offset, in part, by higher backlog conversion, and an increase in spec homes delivered. The increase in the average price of homes delivered in the three-month fiscal 2023 period was primarily due to a shift in the number of homes delivered to more expensive areas and/or products and sales price increases.

The decrease in the number of homes delivered in the six-month fiscal 2023 period was mainly due to a decrease in the number of homes in backlog at October 31, 2022, as compared to the number of homes in backlog at October 31, 2021. The increase in the average price of homes delivered in the six-month fiscal 2023 period was primarily due to a shift in the number of homes delivered to more expensive areas and/or products and sales price increases.

The increase in the number of net contracts signed in the three-month fiscal 2023 period was mainly due to an increase in the number of selling communities and improved demand. The decrease in the average value of each contract signed in the three-month fiscal 2023 period was mainly due to a shift in the number of contracts signed to less expensive areas and/or products and an increase in sales incentives.

The decrease in the number of net contracts signed in the six-month fiscal 2023 period was mainly due to weakened demand, offset, in part, by an increase in the number of selling communities. The average value of each contract signed in the six-month fiscal 2023 period was flat with the six-month fiscal 2022 period.

The increase in income before income taxes in the three-month fiscal 2023 period was mainly due to higher earnings from increased revenue, lower home sales cost of revenues, as a percentage of home sales revenues and lower SG&A costs. The decrease in home sales cost of revenues, as a percentage of home sales revenues, in the fiscal 2023 period was primarily due to a shift in product mix/areas to higher-margin areas and lower interest expense as a percentage of home sales revenues. This decrease in home sales cost of revenues, as a percentage of home sales revenues, were offset, in part, by an increase in impairment charges in the three-month fiscal 2023 period.

The increase in income before income taxes in the six-month fiscal 2023 period was mainly due to lower home sales cost of revenues, as a percentage of home sales revenues and lower SG&A costs. The decrease in home sales cost of revenues, as a percentage of home sales revenues, in the six-month fiscal 2023 period was primarily due to a shift in product mix/areas to higher-margin areas and lower interest expense as a percentage of home sales revenues. This decrease was offset, in part, by an increase in impairment charges in the fiscal 2023 period. In addition, we recognized a $10.3 million land impairment charge, included in land sales and other cost of revenues, during the six-month fiscal 2023 period in connection with a planned land sale. No similar charges were recognized in the six-month fiscal 2022 period.

39

South

	Three months ended April 30,								Six months ended April 30,
	2023			2022			Change		2023			2022			Change
Units Delivered and Revenues:
Home sales revenues ($ in millions)	$	519.4		$	326.4		59	%	$	912.3		$	569.9		60	%
Units delivered	659			447			47	%	1,148			794			45	%
Average delivered price ($ in thousands)	$	788.1		$	730.1		8	%	$	794.7		$	717.8		11	%
Net Contracts Signed:
Net contract value ($ in millions)	$	590.9		$	573.7		3	%	$	919.4		$	1,185.1		(22)	%
Net contracted units	749			616			22	%	1,164			1,353			(14)	%
Average contracted price ($ in thousands)	$	789.0		$	931.3		(15)	%	$	789.9		$	875.9		(10)	%
Home sales cost of revenues as a percentage of home sale revenues	75.2		%	77.9		%			75.9		%	77.9		%
Income before income taxes ($ in millions)	$	88.7		$	43.0		106	%	$	141.2		$	65.5		116	%
Number of selling communities at April 30,	108			91			19	%

The increases in the number of homes delivered in the fiscal 2023 periods were mainly due to an increase in the number of homes in backlog at October 31, 2022, as compared to the number of homes in backlog at October 31, 2021, an increase in spec homes delivered, and higher backlog conversion. The increases in the average price of homes delivered in the fiscal 2023 periods were primarily due to sales price increases and a shift in the number of homes delivered to more expensive areas.

The increase in the number of net contracts signed in the three-month fiscal 2023 period was due principally to improved demand and an increase in the number of selling communities. The decrease in the average value of each contract signed in the three-month fiscal 2023 period was primarily due to a shift in the number of contracts signed to less expensive areas or product types and increased sales incentives.

The decrease in the number of net contracts signed in the six-month fiscal 2023 period was due principally to a decline in demand, offset, in part, by an increase in the number of selling communities. The decrease in the average value of each contract signed in the six-month fiscal 2023 period was primarily due to a shift in the number of contracts signed to less expensive areas or product types and increased sales incentives.

The increases in income before income taxes in the fiscal 2023 periods were principally due to higher earnings from increased revenues and lower home sales cost of revenues, as a percentage of home sale revenues, offset, in part, by higher SG&A costs. The decreases in home sales cost of revenues, as a percentage of home sales revenues, in the fiscal 2023 periods were primarily due to a shift in product mix/areas to higher-margin areas and lower interest expense as a percentage of home sales revenues.

40

Mountain

	Three months ended April 30,								Six months ended April 30,
	2023			2022			Change		2023			2022			Change
Units Delivered and Revenues:
Home sales revenues ($ in millions)	$	674.2		$	653.5		3	%	$	1,154.4		$	1,115.9		3	%
Units delivered	767			814			(6)	%	1,315			1,417			(7)	%
Average delivered price ($ in thousands)	$	879.1		$	802.9		9	%	$	877.9		$	787.4		11	%
Net Contracts Signed:
Net contract value ($ in millions)	$	449.4		$	943.3		(52)	%	$	713.3		$	1,701.4		(58)	%
Net contracted units	529			1,002			(47)	%	828			1,801			(54)	%
Average contracted price ($ in thousands)	$	849.5		$	941.4		(10)	%	$	861.5		$	944.7		(9)	%
Home sales cost of revenues as a percentage of home sale revenues	73.9		%	76.7		%			73.6		%	76.1		%
Income before income taxes ($ in millions)	$	133.9		$	105.0		28	%	$	221.2		$	176.0		26	%
Number of selling communities at April 30,	111			103			8	%

The decreases in the number of homes delivered in the fiscal 2023 periods were mainly due to decreases in the number of homes in backlog at October 31, 2022, as compared to the number of homes in backlog at October 31, 2021, partially offset by higher backlog conversion and an increase in spec homes delivered in the fiscal 2023 periods. The increases in the average price of homes delivered in the fiscal 2023 periods were primarily due to sales price increases.

The decreases in the number of net contracts signed in the fiscal 2023 periods were primarily due to weakened demand, offset, in part, by an increase in the number of selling communities. The decreases in the average value of each contract signed in the fiscal 2023 periods were mainly due to a shift in the number of contracts signed to less expensive areas or product types and increased sales incentives.

The increases in income before income taxes in the fiscal 2023 periods were due mainly to higher earnings from increased revenues in the fiscal 2023 period, lower home sales cost of revenues, as a percentage of home sale revenues and lower SG&A costs. The decreases in home sales cost of revenues, as a percentage of home sales revenues, in the fiscal 2023 periods were primarily due to a shift in product mix/areas to higher-margin areas and sales price increases, offset, in part, by an increase in impairments charges in the fiscal 2023 periods.

41

Pacific

	Three months ended April 30,								Six months ended April 30,
	2023			2022			Change		2023			2022			Change
Units Delivered and Revenues:
Home sales revenues ($ in millions)	$	605.9		$	541.5		12	%	$	970.6		$	926.5		5	%
Units delivered	384			376			2	%	650			661			(2)	%
Average delivered price ($ in thousands)	$	1,577.8		$	1,440.1		10	%	$	1,493.2		$	1,401.7		7	%
Net Contracts Signed:
Net contract value ($ in millions)	$	543.5		$	828.8		(34)	%	$	826.0		$	1,652.9		(50)	%
Net contracted units	343			523			(34)	%	511			1,066			(52)	%
Average contracted price ($ in thousands)	$	1,584.6		$	1,584.7		—	%	$	1,616.4		$	1,550.6		4	%
Home sales cost of revenues as a percentage of home sale revenues	68.0		%	71.7		%			68.8		%	72.9		%
Income before income taxes ($ in millions)	$	157.5		$	116.7		35	%	$	236.5		$	179.8		32	%
Number of selling communities at April 30,	47			44			7	%

The increase in the number of homes delivered in the three-month fiscal 2023 period was mainly due to higher backlog conversion, an increase in spec homes delivered, offset, in part, by a decrease in the number of homes in backlog at October 31, 2022, as compared to the number of homes in backlog at October 31, 2021. The increase in the average price of homes delivered in the three-month fiscal 2023 period was primarily due to a shift in the number of homes delivered to more expensive areas and/or products and sales price increases.

The decrease in the number of homes delivered in the six-month fiscal 2023 period was mainly due to a decrease in the number of homes in backlog at October 31, 2022, as compared to the number of homes in backlog at October 31, 2021, partially offset by higher backlog conversion and an increase in spec homes delivered. The increase in the average price of homes delivered in the six-month fiscal 2023 period was primarily due to a shift in the number of homes delivered to more expensive areas and/or products and sales price increases.

The decreases in the number of net contracts signed in the fiscal 2023 periods were primarily due to a decrease in demand, offset, in part, by an increase in the number of selling communities in the fiscal 2023 periods. The average value of each contract signed in the three-month fiscal 2023 period was flat with the three-month fiscal 2022 period. The increase in the average value of each contract signed in the six-month fiscal 2023 period was mainly due to a shift in product mix and sales price increases.

The increases in income before income taxes in the fiscal 2023 periods were mainly due to higher earnings from increased revenues in the fiscal 2023 period, lower home sales cost of revenues, as a percentage of home sales revenues and lower SG&A costs. In addition, we recognized a $2.2 million land impairment charge, included in land sales and other cost of revenues, during the three-month and six-month fiscal 2023 periods in connection with a planned land sale. No similar charges were recognized in the fiscal 2022 periods. The decreases in home sales cost of revenues, as a percentage of home sales revenues, were primarily due to a shift in product mix/areas to higher-margin areas and sales price increases, coupled with lower interest expense as a percentage of home sales revenues. Home sales cost of revenues, as a percentage of home sales revenues, were also impacted by increased impairment charges in the 2023 periods compared to the fiscal 2022 periods.

Corporate and Other

In the three months ended April 30, 2023 and 2022, loss before income taxes was $64.8 million and $63.4 million, respectively. The increase in the loss before income taxes in the fiscal 2023 period was principally due to lower earnings from our mortgage company operations primarily due to reduced volume and increased competition resulting in decreased spreads, higher losses incurred by our Rental Property Joint Ventures, offset by increased interest income due to higher interest rates and lower SG&A costs. We also recognized a $2.5 million land impairment charge during the three-month fiscal 2023 period in connection with a planned land sale. In addition, the fiscal 2022 period benefited from a $9.0 million gain related to the bulk sale of security monitoring accounts by our smart home technologies business.

In the six months ended April 30, 2023 and 2022, loss before income taxes was $89.4 million and $98.4 million, respectively. The decrease in the loss before income taxes in the fiscal 2023 period was principally due to a $27.7 million gain on litigation settlements - net, recognized in the fiscal 2023 period, lower SG&A costs, and increased interest income due to higher interest

42

rates. These increases are offset, in part, by a $21.0 million gain recognized in the fiscal 2022 period related to a property sale by one of our Rental Property Joint Ventures, a $9.0 million gain related to the bulk sale of security monitoring accounts by our smart home technologies business during the fiscal 2022 period, lower earnings from our mortgage and title company operations primarily due to a decrease in volume, and higher losses incurred by our Rental Property Joint Ventures. In addition, we recognized a $2.5 million land impairment charge during the six-month fiscal 2023 period in connection with a planned land sale.

AVAILABLE INFORMATION

Our principal Internet address is www.tollbrothers.com, and our Investor Relations website is located at investors.tollbrothers.com. We make our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act available through our Investor Relations website, free of charge, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.

We provide information about our business and financial performance, including our company overview, on our Investor Relations website. Additionally, we webcast our earnings calls and certain events we participate in with members of the investment community on our Investor Relations website. Corporate governance information, including our codes of ethics, corporate governance guidelines, and board committee charters, is also available on our Investor Relations website. The content of our websites is not incorporated by reference into this Quarterly Report on Form 10-Q or in any other report or document we file with the SEC, and any references to our websites are intended to be inactive textual references only.

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 value of the debt instrument, but do affect our earnings and cash flow. We generally do not have the obligation to prepay fixed-rate debt before maturity, and, as a result, interest rate risk and changes in fair 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 April 30, 2023, our debt obligations by scheduled maturity, weighted-average interest rates, and estimated fair value (amounts in thousands):

	Fixed-rate debt			Variable-rate debt (a),(b)
Fiscal year of maturity	Amount		Weighted- average interest rate	Amount		Weighted- average interest rate
2023	$	137,183	3.79%	$	104,099	6.72%
2024	121,446		4.44%	—
2025	95,400		5.28%	—
2026	387,148		4.82%	101,563		5.95%
2027	469,088		4.83%	60,937		5.95%
Thereafter	877,993		4.02%	487,500		5.95%
Bond discounts, premiums and deferred issuance costs - net	(7,906)			—
Total	$	2,080,352	4.42%	$	754,099	6.06%
Fair value at April 30, 2023	$	2,009,141		$	754,099

(a)    Based upon the amount of variable-rate debt outstanding at April 30, 2023, and holding the variable-rate debt balance constant, each 1% increase in interest rates would increase the interest incurred by us by approximately $7.5 million per year, without consideration of the Company’s interest rate swap transactions.

(b)    In November 2020, we entered into five interest rate swap transactions to hedge $400.0 million of the Term Loan Facility, which is included in the variable-rate debt column in the table above. The interest rate swaps effectively fix the interest cost on the $400.0 million at 0.369% plus the spread set forth in the pricing schedule in the Term Loan Facility through October 2025. The spread was 1.15% as of April 30, 2023. These interest rate swaps were designated as cash flow hedges.

43

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 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 SEC’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.

We continue to implement a new enterprise resource planning (“ERP”) system that affects many of our financial processes and is expected to improve the efficiency and effectiveness of certain financial and business transaction processes, as well as the underlying systems environment. The new ERP system will be a significant component of our internal control over financial reporting. Other than the ERP system implementation noted above, there has not been any change in our internal control over financial reporting (as that term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during our quarter ended April 30, 2023, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

44

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are involved in various claims and litigation arising principally in the ordinary course of business. We believe that adequate provision for resolution of all current claims and pending litigation has been made and that 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 Part I, Item 1A., “Risk Factors” in our 2022 Form 10-K.

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

Issuer Purchases of Equity Securities

During the three-month period ended April 30, 2023, we repurchased the following shares of our common stock:

Period	Total number of shares purchased (a)	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs (b)	Maximum number of shares that may yet be purchased under the plans or programs (b)
	(in thousands)			(in thousands)	(in thousands)
February 1, 2023 to February 28, 2023	60	$	58.08	60	14,329
March 1, 2023 to March 31, 2023	1,042	$	58.20	1,042	13,287
April 1, 2023 to April 30, 2023	341	$	57.97	341	12,947
Total	1,443	$	58.14	1,443

(a)    Our stock incentive plans permit us to withhold from the total number of shares that otherwise would be issued to a performance based restricted stock unit recipient or a restricted stock unit recipient upon distribution that number of shares having a fair value at the time of distribution equal to the applicable income tax withholdings due and remit the remaining shares to the recipient. During the three months ended April 30, 2023, we withheld 1,894 of the shares subject to performance based restricted stock units and/or restricted stock units to cover approximately $111,300 of income tax withholdings and we issued the remaining 4,841 shares to the recipients. The shares withheld are not included in the total number of shares purchased in the table above.

Our stock incentive plans also permit participants to exercise non-qualified stock options using a “net exercise” method. 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-month period ended April 30, 2023, the net exercise method was not employed to exercise options.

(b)    On May 17, 2022, our Board of Directors authorized the repurchase of 20 million shares of our common stock in open market transactions, privately negotiated transactions (including accelerated share repurchases), issuer tender offers or other financial arrangements or transactions for general corporate purposes, including to obtain shares for the Company’s equity award and other employee benefit plans. This authorization terminated, effective May 17, 2022, the existing authorization that had been in effect since March 10, 2020. Our Board of Directors did not fix any expiration date for the current share repurchase program.

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

April 30, 2023.

45

Dividends

During the six months ended April 30, 2023, we paid cash dividends of $0.41 per share to our shareholders. 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 results of operations, our capital requirements, our operating and financial condition, and any contractual limitations then in effect. Our revolving credit agreement and term loan agreement each require us to maintain a minimum tangible net worth (as defined in the applicable agreement), which restricts the amount of dividends we may pay. At April 30, 2023, under our bank credit agreements, we could have paid up to approximately $2.33 billion of cash dividends.

ITEM 6. EXHIBITS

4.1*	Twenty-Ninth Supplemental Indenture dated as of January 31, 2023 to the Indenture dated as of February 7, 2012 by and among the party listed on Schedule A hereto and The Bank of New York Mellon, as successor trustee
10.1	Credit Agreement, dated as of February 14, 2023, by and among First Huntingdon Finance Corp., Toll Brothers, Inc., the Lenders party thereto and Mizuho Bank, Ltd. as Administrative Agent, is hereby incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 15, 2023
10.2	Amendment No. 5, dated as of February 14, 2023, to the Credit Agreement, dated as of February 3, 2014 (as amended by Amendment No. 1, dated as of May 19, 2016, Amendment No. 2, dated as of August 2, 2016, Amendment No. 3, dated as of November 1, 2018 and Amendment No. 4, dated as of October 31, 2019), among First Huntingdon Finance Corp., Toll Brothers, Inc., the Lenders party thereto and Truist Bank, as Administrative Agent, is hereby incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 15, 2023
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	The following financial statements from Toll Brothers, Inc. Quarterly Report on Form 10-Q for the quarter ended April 30, 2023, filed on June 1, 2023, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income, (iii) Condensed Consolidated Statements of Changes in Equity, (iv) Condensed Consolidated Statements of Cash Flows, and (v) the Notes to Condensed Consolidated Financial Statements
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

* Filed electronically herewith.

46

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:	June 1, 2023	By:	/s/ Martin P. Connor
			Martin P. Connor Senior Vice President and Chief Financial Officer (Principal Financial Officer)
Date:	June 1, 2023	By:	/s/ Michael J. Grubb
			Michael J. Grubb Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)

47

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: June 1, 2023

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: June 1, 2023

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 on Form 10-Q of Toll Brothers, Inc. (the “Company”) for the quarter ended April 30, 2023, 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: June 1, 2023

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 on Form 10-Q of Toll Brothers, Inc. (the “Company”) for the quarter ended April 30, 2023, 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: June 1, 2023

XML

Document and Entity Information Document - shares	6 Months Ended
	Apr. 30, 2023	May 30, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 30, 2023
Document Transition Report	false
Entity File Number	001-09186
Entity Registrant Name	Toll Brothers, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-2416878
Entity Address, Address Line One	1140 Virginia Drive
Entity Address, City or Town	Fort Washington
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19034
City Area Code	215
Local Phone Number	938-8000
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	TOL
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		109,342,000
Entity Central Index Key	0000794170
Current Fiscal Year End Date	--10-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2023	Oct. 31, 2022
ASSETS
Cash and cash equivalents	$ 761,945	$ 1,346,754
Inventory	9,107,878	8,733,326
Property, construction and office equipment, net	298,168	287,827
Receivables, prepaid expenses and other assets	697,612	747,228
Mortgage loans held for sale, at fair value	112,603	185,150
Customer deposits held in escrow	123,627	136,115
Investments in unconsolidated entities	887,643	852,314
Total assets	11,989,476	12,288,714
Liabilities:
Loans payable	1,136,235	1,185,275
Senior notes	1,595,727	1,995,271
Mortgage company loan facility	102,489	148,863
Customer deposits	662,559	680,588
Accounts payable	550,900	619,411
Accrued expenses	1,334,197	1,345,987
Income taxes payable	171,643	291,479
Total liabilities	5,553,750	6,266,874
Stockholders' equity:
Preferred stock, none issued	0	0
Common stock, 127,937 shares issued April 30, 2023 and October 31, 2022, respectively	1,279	1,279
Additional paid-in capital	697,583	716,786
Retained earnings	6,632,502	6,166,732
Treasury stock, at cost - 18,505 and 18,312 shares at April 30, 2023 and October 31, 2022, respectively	(945,019)	(916,327)
Total AOCI ending balance	33,875	37,618
Total stockholders' equity	6,420,220	6,006,088
Noncontrolling interest	15,506	15,752
Total equity	6,435,726	6,021,840
Total liabilities and stockholders' equity	11,989,476	12,288,714
Variable Interest Entity, Primary Beneficiary [Member]
ASSETS
Investments in unconsolidated entities	$ 84,300	$ 81,300

XML

Condensed Consolidated Balance Sheets (Parenthetical) - shares shares in Thousands	Apr. 30, 2023	Oct. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, shares issued	0	0
Common stock, shares issued	127,937	127,937
Treasury stock, at cost	18,505	18,312

XML

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Revenues	$ 2,506,979	$ 2,277,541	$ 4,287,148	$ 4,068,622
Cost of revenues	1,853,728	1,752,246	3,197,086	3,141,390
Selling, general and administrative	227,537	243,637	439,034	470,507
Income from operations	425,714	281,658	651,028	456,725
Other:
(Loss) income from unconsolidated entities	(5,302)	2,933	(9,735)	24,970
Other income - net	10,180	11,224	43,095	14,936
Income before income taxes	430,592	295,815	684,388	496,631
Income tax provision	110,376	75,222	172,642	124,134
Net income	320,216	220,593	511,746	372,497
Other comprehensive income, net of tax:
Other comprehensive (loss) income - net of tax	(279)	13,608	(3,743)	18,310
Total comprehensive income	$ 319,937	$ 234,201	$ 508,003	$ 390,807
Per share:
Basic earnings	$ 2.88	$ 1.87	$ 4.60	$ 3.12
Diluted earnings	$ 2.85	$ 1.85	$ 4.56	$ 3.08
Weighted average number of shares:
Basic	111,214	117,839	111,306	119,418
Diluted	112,184	118,925	112,260	120,891
Home Building [Member]
Revenues	$ 2,490,098	$ 2,186,529	$ 4,239,520	$ 3,873,881
Cost of revenues	1,832,878	1,659,265	3,133,801	2,948,792
Land [Member]
Revenues	16,881	91,012	47,628	194,741
Cost of revenues	$ 20,850	$ 92,981	$ 63,285	$ 192,598

XML

Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]
Beginning balance at Oct. 31, 2021	$ 5,340,455	$ 1,279	$ 714,453	$ 4,969,839	$ (391,656)	$ 1,109	$ 45,431
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	372,497			372,497
Purchase of treasury stock	(292,279)				(292,279)
Exercise of stock options, stock based compensation issuances, and employee stock purchase plan issuances	(2,283)		(16,822)		14,539
Stock-based compensation	17,020		17,020
Dividends declared	(44,397)			(44,397)
Other Comprehensive Income (Loss), Net of Tax	18,310					18,310
Net income (loss) attributable to noncontrolling interest	86						86
Capital contributions (distributions) – net	(29,743)						(29,743)
Ending balance at Apr. 30, 2022	5,379,666	1,279	714,651	5,297,939	(669,396)	19,419	15,774
Beginning balance at Jan. 31, 2022	5,301,450	1,279	711,558	5,100,841	(563,618)	5,811	45,579
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	220,593			220,593
Purchase of treasury stock	(106,511)				(106,511)
Exercise of stock options, stock based compensation issuances, and employee stock purchase plan issuances	421		(312)		733
Stock-based compensation	3,405		3,405
Dividends declared	(23,495)			(23,495)
Other Comprehensive Income (Loss), Net of Tax	13,608					13,608
Net income (loss) attributable to noncontrolling interest	65						65
Capital contributions (distributions) – net	(29,870)						(29,870)
Ending balance at Apr. 30, 2022	5,379,666	1,279	714,651	5,297,939	(669,396)	19,419	15,774
Beginning balance at Oct. 31, 2022	6,021,840	1,279	716,786	6,166,732	(916,327)	37,618	15,752
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	511,746			511,746
Purchase of treasury stock	(93,203)				(93,203)
Exercise of stock options, stock based compensation issuances, and employee stock purchase plan issuances	28,283		(36,228)		64,511
Stock-based compensation	17,025		17,025
Dividends declared	(45,976)			(45,976)
Other Comprehensive Income (Loss), Net of Tax	(3,743)					(3,743)
Net income (loss) attributable to noncontrolling interest	(246)						(246)
Ending balance at Apr. 30, 2023	6,435,726	1,279	697,583	6,632,502	(945,019)	33,875	15,506
Beginning balance at Jan. 31, 2023	6,216,994	1,279	696,115	6,335,574	(865,775)	34,154	15,647
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	320,216			320,216
Purchase of treasury stock	(83,846)				(83,846)
Exercise of stock options, stock based compensation issuances, and employee stock purchase plan issuances	3,429		(1,173)		4,602
Stock-based compensation	2,641		2,641
Dividends declared	(23,288)			(23,288)
Other Comprehensive Income (Loss), Net of Tax	(279)					(279)
Net income (loss) attributable to noncontrolling interest	(141)						(141)
Ending balance at Apr. 30, 2023	$ 6,435,726	$ 1,279	$ 697,583	$ 6,632,502	$ (945,019)	$ 33,875	$ 15,506

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022
Cash flow provided by (used in) operating activities:
Net income	$ 511,746	$ 372,497
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	34,093	33,536
Stock-based compensation	17,025	17,020
Income (Loss) from unconsolidated entities	9,735	(24,970)
Distributions of earnings from unconsolidated entities	30,447	29,636
Deferred tax (benefit) provision	8,646	6,797
Impairment charges and write offs	36,773	11,225
Other	2,371	2,831
Changes in operating assets and liabilities
Inventory	(299,940)	(890,202)
Origination of mortgage loans	(705,500)	(931,958)
Sale of mortgage loans	783,959	1,027,696
Receivables, prepaid expenses and other assets	4,233	(239)
Current income taxes, net	(127,199)	(14,321)
Customer deposits, net	(5,541)	110,460
Accounts payable and accrued expenses	(155,277)	45,020
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	145,571	(204,972)
Cash flow (used in) provided by investing activities:
Purchase of property, construction and office equipment - net	(39,544)	(39,140)
Investments in and advances to unconsolidated entities	(117,221)	(121,282)
Return of investments in unconsolidated entities	48,564	88,371
Proceeds from the sale of assets	9,041	0
Other	0	194
Net Cash (Used in) Provided By Investing Activities, Continuing Operations	(99,160)	(71,857)
Cash flow used in financing activities:
Proceeds from loans payable	1,652,710	1,826,068
Debt issuance costs for loans payable	(5,265)	0
Repayments of loans payable	(1,771,636)	(1,879,318)
Redemption of senior notes	(400,000)	(409,856)
(Payments) proceeds from stock-based benefit plans	28,286	(2,279)
Purchase of treasury stock	(93,089)	(284,276)
Dividends paid	(46,306)	(44,255)
Payments related to noncontrolling interests - net	0	(25,766)
Net Cash Used in Financing Activities, Continuing Operations	(635,300)	(819,682)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect	(588,889)	(1,096,511)
Cash, Cash Equivalents, and Restricted Cash , beginning of period	1,398,550	1,684,412
Cash, Cash Equivalents, and Restricted Cash, end of period	$ 809,661	$ 587,901

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Significant Accounting Policies

6 Months Ended

Apr. 30, 2023

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Significant Accounting Policies

Basis of Presentation

Our condensed consolidated financial statements include the accounts of Toll Brothers, Inc. (the “Company,” “we,” “us,” or “our”), a Delaware corporation, and its majority owned subsidiaries. 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 we have effective control of the entity, in which case we would consolidate the entity.

Our 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, 2022 balance sheet amounts and disclosures have been derived from our October 31, 2022 audited financial statements. Since the 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, they should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022 (“2022 Form 10-K”). In the opinion of management, the unaudited condensed consolidated financial statements include all recurring adjustments necessary to present fairly our financial position as of April 30, 2023; the results of our operations and changes in equity for the three-month and six-month periods ended April 30, 2023 and 2022; and our cash flows for the six-month periods ended April 30, 2023 and 2022. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

Use of Estimates

The preparation of financial statements in accordance with GAAP requires estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Estimates and assumptions may prove to be incorrect for a variety of reasons, whether as a result of the risks and uncertainties our business is subject to or for other reasons. In times of economic disruption when uncertainty regarding future economic conditions is heightened, our estimates and assumptions are subject to greater variability. Actual results could differ from the estimates and assumptions we make and such differences may be material.

Revenue Recognition

Home sales revenues: Revenues and cost of revenues from home sales are recognized at the time each home is delivered and title and possession are transferred to the buyer. For the majority of our home closings, our performance obligation to deliver a home is satisfied in less than one year from the date a binding sale agreement is signed. In certain states where we build, we are not able to complete certain outdoor features prior to the closing of the home. To the extent these separate performance obligations are not complete upon the home closing, we defer a portion of the home sales revenues related to these obligations and subsequently recognize the revenue upon completion of such obligations. As of April 30, 2023, the home sales revenues and related costs we deferred related to these obligations were immaterial. Our contract liabilities, consisting of deposits received from customers for sold but undelivered homes, totaled $662.6 million and $680.6 million at April 30, 2023 and October 31, 2022, respectively. Of the outstanding customer deposits held as of October 31, 2022, we recognized $152.2 million and $275.1 million in home sales revenues during the three months and six months ended April 30, 2023. Of the outstanding customer deposits held as of October 31, 2021, we recognized $132.9 million and $243.8 million in home sales revenues during the three and six months ended April 30, 2022.

Land sales and other revenues: Our revenues from land sales and other generally consist of: (1) land sales to joint ventures in which we retain an interest; (2) lot sales to third-party builders within our master-planned communities; (3) bulk sales to third parties of land we have decided no longer meets our development criteria; and (4) sales of commercial and retail properties generally located at our high-rise urban luxury condominium buildings. In general, our performance obligation for each of these land sales is fulfilled upon the delivery of the land, which generally coincides with the receipt of cash consideration from the counterparty. For land sale transactions that contain repurchase options, revenues and related costs are not recognized until the repurchase option expires. In addition, when we sell land to a joint venture in which we retain an interest, we do not recognize revenue or gains on the sale to the extent of our retained interest in such joint venture.

Forfeited Customer Deposits: Forfeited customer deposits are recognized in “Home sales revenues” in our Condensed Consolidated Statements of Operations and Comprehensive Income in the period in which we determine that the customer will not complete the purchase of the home and we have the right to retain the deposit.

Sales Incentives: In order to promote sales of our homes, we may offer our home buyers sales incentives. These incentives vary by type of incentive and by amount on a community-by-community and home-by-home basis. Incentives are reflected as a reduction in home sales revenues. Incentives are recognized at the time the home is delivered to the home buyer and we receive the sales proceeds.

Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “Reference Rate Reform (Topic 848),” as amended by ASU 2021-01 in January 2021 and ASU 2022-06 in December 2022 (“ASC 848”), directly addressing the effects of reference rate reform on financial reporting as a result of the cessation of the publication of certain London Interbank Offered Rate (“LIBOR”) rates beginning December 31, 2021. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform by virtue of referencing LIBOR or another reference rate expected to be discontinued. This guidance became effective on March 12, 2020 and can be adopted no later than December 31, 2024, with early adoption permitted. We elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance on our consolidated financial statements and may apply other elections as applicable as additional changes in the market occur.

Reclassification

Certain prior period amounts have been reclassified to conform to the fiscal 2023 presentation.

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Inventory

6 Months Ended

Apr. 30, 2023

Inventory Disclosure [Abstract]

Inventory

Inventory

Inventory at April 30, 2023 and October 31, 2022 consisted of the following (amounts in thousands):

	April 30, 2023		October 31, 2022
Land controlled for future communities	$	170,613	$	240,751
Land owned for future communities	876,561		808,851
Operating communities	8,060,704		7,683,724
	$	9,107,878	$	8,733,326

Operating communities include communities offering homes for sale; communities that have sold all available home sites but have not completed delivery of the homes 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.

Backlog consists of homes under contract but not yet delivered to our home buyers (“backlog”).

The amounts we have provided for inventory impairment charges and the expensing of costs that we believe not to be recoverable, for the periods indicated, which are included in home sales cost of revenues, are shown in the table below (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Land controlled for future communities	$	5,844	$	2,192	$	8,448	$	2,985
Land owned for future communities	325		—		325		1,440
Operating communities	4,900		—		10,300		—
	$	11,069	$	2,192	$	19,073	$	4,425

We have also recognized $4.7 million and $17.7 million of impairment charges on land held for sale included in land sales and other cost of revenues during the three-month and six-month periods ended April 30, 2023, respectively. We recognized $5.2 million of similar charges during the three-month and six-month periods ended April 30, 2022.

See Note 13, “Commitments and Contingencies,” for information regarding land purchase commitments.

At April 30, 2023, we evaluated our land purchase contracts, including those to acquire land for apartment developments, to determine whether any of the selling entities were variable interest entities (“VIEs”) and, if they were, whether we were the

primary beneficiary of any of them. Under these land purchase contracts, we do not possess legal title to the land; our risk is generally limited to deposits paid to the sellers and predevelopment costs incurred; and the creditors of the sellers generally have no recourse against us. At April 30, 2023, we determined that 236 land purchase contracts, with an aggregate purchase price of $3.75 billion, on which we had made aggregate deposits totaling $414.6 million, were VIEs, and that we were not the primary beneficiary of any VIE related to our land purchase contracts. At October 31, 2022, we determined that 237 land purchase contracts, with an aggregate purchase price of $3.89 billion, on which we had made aggregate deposits totaling $417.6 million, were VIEs and that we were not the primary beneficiary of any VIE related to our land purchase contracts.

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

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Interest capitalized, beginning of period	$	215,197	$	247,942	$	209,468	$	253,938
Interest incurred	37,862		31,888		74,716		62,893
Interest expensed to home sales cost of revenues	(37,558)		(40,822)		(62,638)		(73,259)
Interest expensed to land sales and other cost of revenues	(1,350)		(219)		(4,827)		(3,628)
Interest capitalized on investments in unconsolidated entities	(2,668)		(1,516)		(5,161)		(2,806)
Previously capitalized interest transferred to investments in unconsolidated entities	—		—		(244)		—
Previously capitalized interest on investments in unconsolidated entities transferred to inventory	277		60		446		195
Interest capitalized, end of period	$	211,760	$	237,333	$	211,760	$	237,333

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Investments in Unconsolidated Entities

6 Months Ended

Apr. 30, 2023

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Investments in Unconsolidated Entities

Investments in Unconsolidated Entities

We have investments in various unconsolidated entities and our ownership interest in these investments ranges from 5.0% to 50%. These entities are structured as joint ventures and either: (i) develop land for the joint venture participants and for sale to outside builders (“Land Development Joint Ventures”); (ii) develop for-sale homes (“Home Building Joint Ventures”); (iii) develop luxury for-rent residential apartments and single family homes, commercial space, and a hotel (“Rental Property Joint Ventures”); or (iv) provide financing and land banking to residential builders and developers for the acquisition and development of land and home sites (“Gibraltar Joint Ventures”).

The table below provides information as of April 30, 2023, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Number of unconsolidated entities	16		3		43		4		66
Investment in unconsolidated entities (1)	$	341,358	$	66,271	$	468,336	$	11,678	$	887,643
Number of unconsolidated entities with funding commitments by the Company	9		—		22		1		32
Company’s remaining funding commitment to unconsolidated entities (2)	$	215,524	$	—	$	107,524	$	11,570	$	334,618

(1)    Our total investment includes $104.8 million related to 13 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $201.2 million as of April 30, 2023. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 20% to 50%.

(2)    Our remaining funding commitment includes approximately $106.2 million related to our unconsolidated joint venture-related variable interests in VIEs.

The table below provides information as of October 31, 2022, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Number of unconsolidated entities	15		3		41		4		63
Investment in unconsolidated entities (1)	$	343,314	$	49,385	$	441,399	$	18,216	$	852,314
Number of unconsolidated entities with funding commitments by the Company	9		1		18		1		29
Company’s remaining funding commitment to unconsolidated entities (2)	$	180,812	$	20,072	$	90,900	$	12,533	$	304,317

(1)    Our total investment includes $100.2 million related to 13 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $200.0 million as of October 31, 2022. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 20% to 50%.

(2)    Our remaining funding commitment includes approximately $105.0 million related to our unconsolidated joint venture-related variable interests in VIEs.

Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at April 30, 2023, regarding the debt financing obtained by category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Total
Number of joint ventures with debt financing	11		2		40		53
Aggregate loan commitments	$	576,959	$	219,650	$	3,638,795	$	4,435,404
Amounts borrowed under loan commitments	$	449,637	$	78,114	$	2,036,446	$	2,564,197

The table below provides information at October 31, 2022, regarding the debt financing obtained by category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Total
Number of joint ventures with debt financing	10		2		35		47
Aggregate loan commitments	$	557,185	$	219,650	$	3,317,261	$	4,094,096
Amounts borrowed under loan commitments	$	444,306	$	17,583	$	1,774,567	$	2,236,456

More specific and/or recent information regarding our investments in, advances to, and future commitments to these entities is provided below.

New Joint Ventures

The table below provides information on joint ventures entered into during the six-months ended April 30, 2023 ($ amounts in thousands):

	Land Development Joint Ventures		Rental Property Joint Ventures
Number of unconsolidated joint ventures entered into during the period	1		2
Investment balance at April 30, 2023	$	11,755	$	4,795

The table below provides information on joint ventures entered into during the six-months ended April 30, 2022 ($ amounts in thousands):

	Land Development Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures
Number of unconsolidated joint ventures entered into during the period	2		7		1
Investment balance at April 30, 2022	$	13,816	$	69,513	$	2,093

Results of Operations and Intra-entity Transactions

From time to time, certain of our land development and rental property joint ventures sell assets to unrelated parties or to our joint venture partner. None of our joint ventures sold assets in the three or six-month periods ended April 30, 2023 or the three-month period ended April 30, 2022. In the six-month period ended April 30, 2022, one of our joint ventures sold its assets and we recognized $21.0 million in “Income from unconsolidated entities” on our Condensed Consolidated Statements of Operations and Comprehensive Income.

There were no other-than-temporary impairment charges recognized in the three-month or six-month periods ended April 30, 2023 and 2022.

In the three-month periods ended April 30, 2023 and 2022, we purchased land from unconsolidated entities, principally related to our acquisition of lots from our Land Development Joint Ventures, totaling $52.4 million and $14.1 million, respectively. In the six-month periods ended April 30, 2023 and 2022, we purchased land from unconsolidated entities, principally related to our acquisition of lots from our Land Development Joint Ventures, totaling $69.1 million and $37.9 million, respectively. Our share of income from the lots we acquired was insignificant in each period. In the three-month periods ended April 30, 2023 and 2022, we sold land to unconsolidated entities, which principally involved land sales to our Rental Property Joint Ventures, totaling $8.2 million and $73.9 million, respectively. In the six-month periods ended April 30, 2023 and 2022, we sold land to unconsolidated entities, which principally involved land sales to our Rental Property Joint Ventures, totaling $8.2 million and $151.9 million, respectively. These amounts are included in “Land sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income and are generally sold at or near our land basis.

Guarantees

The unconsolidated entities in which we have investments generally finance their activities with a combination of partner equity and debt financing. In some instances, we have guaranteed portions of debt of unconsolidated entities. These guarantees may include any or all of the following: (i) project completion guarantees, including any cost overruns; (ii) repayment guarantees, generally covering a percentage of the outstanding loan; (iii) carry cost guarantees, which cover costs such as interest, real estate taxes, and insurance; (iv) an environmental indemnity provided to the lender that holds the lender harmless from and against losses arising from the discharge of hazardous materials from the property and non-compliance with applicable environmental laws; and (v) indemnification of the lender from “bad boy acts” of the unconsolidated entity or its partners.

In some instances, we and our joint venture partner have provided joint and several guarantees in connection with loans to unconsolidated entities. In these situations, we generally seek to implement a reimbursement agreement with our partner that provides that neither party is responsible for more than its proportionate share or agreed upon share of the guarantee; however, we are not always successful. In addition, if the joint venture partner does not have adequate financial resources to meet its obligations under such a reimbursement agreement, we may be liable for more than our proportionate share.

We believe that, as of April 30, 2023, in the event we become legally obligated to perform under a guarantee of an obligation of an unconsolidated entity due to a triggering event, the collateral in such entity should be sufficient to repay a significant portion of the obligation. If it is not, we and our partners would need to contribute additional capital to the venture.

Information with respect to certain of the Company’s unconsolidated entities’ outstanding debt obligations, loan commitments and our guarantees thereon are as follows ($ amounts in thousands):

	April 30, 2023		October 31, 2022
Loan commitments in the aggregate	$	3,181,400	$	2,858,800
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1)	$	654,400	$	597,800
Debt obligations borrowed in the aggregate	$	1,436,200	$	1,110,900
Our maximum estimated exposure under repayment and carry cost guarantees of the debt obligations borrowed	$	487,600	$	390,500
Estimated fair value of guarantees provided by us related to debt and other obligations	$	19,000	$	16,900
Terms of guarantees	1 month - 3.9 years		1 month - 3.7 years

(1)    At April 30, 2023 and October 31, 2022, our maximum estimated exposure under repayment and carry cost guarantees includes approximately $95.0 million related to our unconsolidated Joint Venture VIEs.

The maximum exposure estimates presented above do not take into account any recoveries from the underlying collateral or any reimbursement from our partners. In addition, they do not include any potential exposures related to project completion guarantees or the indemnities noted above, which are not estimable. We have not made payments under any of the outstanding guarantees, nor have we been called upon to do so.

Variable Interest Entities

We have both unconsolidated and consolidated joint venture-related variable interests in VIEs. Information regarding our involvement in unconsolidated joint-venture related variable interests in VIEs has been disclosed throughout information presented above.

The table below provides information as of April 30, 2023 and October 31, 2022, regarding our consolidated joint venture-related variable interests in VIEs ($ amounts in thousands):

	Balance Sheet Classification	April 30, 2023		October 31, 2022
Number of Joint Venture VIEs that the Company is the primary beneficiary and consolidates		6		5
Carrying value of consolidated VIEs assets	Inventory and investments in unconsolidated entities	$	84,300	$	81,300
Our partners’ interests in consolidated VIEs	Noncontrolling interest	$	9,600	$	9,700

Our ownership interest in the above consolidated Joint Venture VIEs ranges from 80% to 98%.

As shown above, we are the primary beneficiary of certain VIEs due to our controlling financial interest in such ventures as we have the power to direct the activities that most significantly impact the joint ventures’ performance and the obligation to absorb expected losses or receive benefits from the joint ventures. The assets of these VIEs can only be used to settle the obligations of the VIEs. In addition, in certain of the joint ventures, in the event additional contributions are required to be funded to the joint ventures prior to the admission of any additional investor at a future date, we will fund 100% of such contributions, including our partner’s pro rata share, which we expect would be funded through an interest-bearing loan. For other VIEs, we are not the primary beneficiary because the power to direct the activities of such VIEs that most significantly impact their performance was either shared by us and such VIEs’ other partners or such activities were controlled by our partner. For VIEs where the power to direct significant activities is shared, business plans, budgets, and other major decisions are required to be unanimously approved by all partners. Management and other fees earned by us are nominal and believed to be at market rates, and there is no significant economic disproportionality between us and other partners.

Joint Venture Condensed Combined Financial Information

The Condensed Combined Balance Sheets, as of the dates indicated, and the Condensed Combined Statements of Operations, for the periods indicated, for the unconsolidated entities in which we have an investment are included below (in thousands):

Condensed Combined Balance Sheets:

	April 30, 2023		October 31, 2022
Cash and cash equivalents	$	135,511	$	254,884
Inventory	1,342,879		1,256,215
Loans receivable – net	44,807		48,217
Rental properties	1,887,721		1,702,690
Rental properties under development	1,596,007		1,413,607
Other assets	364,735		305,250
Total assets	$	5,371,660	$	4,980,863
Debt – net of deferred financing costs	$	2,555,116	$	2,248,754
Other liabilities	392,710		399,818
Partners’ equity	2,423,834		2,332,291
Total liabilities and equity	$	5,371,660	$	4,980,863
Company’s net investment in unconsolidated entities (1)	$	887,643	$	852,314

(1)    Our underlying equity in the net assets of the unconsolidated entities was less than our net investment in unconsolidated entities by $4.4 million and $18.5 million as of April 30, 2023 and October 31, 2022, respectively, and these differences are primarily a result of unrealized gains on our retained joint venture interests; distributions from entities in excess of the carrying amount of our net investment; interest capitalized on our investments; other than temporary impairments we have recognized; gains recognized from the sale of our ownership interests; and the estimated fair value of the guarantees provided to the joint ventures.

Condensed Combined Statements of Operations:

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Revenues	$	125,397	$	130,771	$	237,116	$	286,523
Cost of revenues	78,613		86,219		137,966		194,701
Other expenses	56,655		39,172		119,729		82,776
Total expenses	135,268		125,391		257,695		277,477
Loss on disposition of loans and real estate owned	—		—		—		(113)
(Loss) income from operations	(9,871)		5,380		(20,579)		8,933
Other (loss) income (2)	(2,276)		7,064		(3,632)		40,410
(Loss) income before income taxes	(12,147)		12,444		(24,211)		49,343
Income tax (benefit) expense	(148)		74		(166)		156
Net (loss) income	(11,999)		12,370		(24,045)		49,187
Company’s (loss) income from unconsolidated entities (3)	$	(5,302)	$	2,933	$	(9,735)	$	24,970

(2)    The six months ended April 30, 2022 includes $29.9 million, related to the sale of assets by our Rental Property Joint Ventures.

(3)    Differences between our (loss) income from unconsolidated entities and the underlying net (loss) income of the entities are primarily a result of distributions from entities in excess of the carrying amount of our investment; promote earned on the gains recognized by joint ventures and those promoted cash flows being distributed; other than temporary impairments we have recognized; recoveries of previously incurred charges; unrealized gains on our retained joint venture interests; gains recognized from the sale of our investment to our joint venture partner; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired.

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Receivables, Prepaid Expenses, and Other Assets

6 Months Ended

Apr. 30, 2023

Receivables, prepaid expenses and other assets [Abstract]

Receivables, Prepaid Expenses, and Other Assets

Receivables, Prepaid Expenses, and Other AssetsReceivables, prepaid expenses, and other assets at April 30, 2023 and October 31, 2022, consisted of the following (amounts in thousands):

	April 30, 2023		October 31, 2022
Expected recoveries from insurance carriers and others	$	35,873	$	41,527
Improvement cost receivable	57,190		60,812
Escrow cash held by our wholly owned captive title company	47,716		51,796
Properties held for rental apartment and commercial development	261,980		224,593
Prepaid expenses	28,312		44,307
Right-of-use asset	118,803		116,660
Derivative assets	37,493		71,929
Other	110,245		135,604
	$	697,612	$	747,228

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Loans Payable, Senior Notes and Mortgage Company Loan Facility

6 Months Ended

Apr. 30, 2023

Debt Disclosure [Abstract]

Loans Payable, Senior Notes, and Mortgage Company Loan Facility

Loans Payable, Senior Notes, and Mortgage Company Loan Facility

Loans Payable

At April 30, 2023 and October 31, 2022, loans payable consisted of the following (amounts in thousands):

	April 30, 2023		October 31, 2022
Senior unsecured term loan	$	650,000	$	650,000
Loans payable – other	489,869		537,043
Deferred issuance costs	(3,634)		(1,768)
	$	1,136,235	$	1,185,275

Senior Unsecured Term Loan

We are party to a $650.0 million senior unsecured term loan facility (the “Term Loan Facility”) with a syndicate of banks. On February 14, 2023, we entered into an amendment to the Term Loan Facility to extend the maturity date of $487.5 million of outstanding term loans to February 14, 2028, with $60.9 million due on November 1, 2026 and the remaining $101.6 million due on November 1, 2025. In addition, this amendment replaced the LIBOR-based interest rate provisions applicable to borrowings under the Term Loan Facility with Secured Overnight Financing Rate (“SOFR”)-based interest rate provisions. At April 30, 2023, other than $101.6 million of term loans scheduled to mature on November 1, 2025 and the $60.9 million scheduled to mature on November 1, 2026, there were no payments required before the final maturity date on the Term Loan Facility. At April 30, 2023, the interest rate on the Term Loan Facility was 5.95% per annum. We and substantially all of our 100%-owned home building subsidiaries are guarantors under the Term Loan Facility. The Term Loan Facility contains substantially the same financial covenants as the New Revolving Credit Facility described below.

In November 2020, we entered into five interest rate swap transactions to hedge $400.0 million of the Term Loan Facility. The interest rate swaps effectively fix the interest cost on the $400.0 million at 0.369% plus the spread set forth in the pricing schedule in the Term Loan Facility through October 2025. The spread at April 30, 2023 was 1.15%. These interest rate swaps were designated as cash flow hedges.

Revolving Credit Facility

On February 14, 2023, we entered into a new five-year $1.905 billion senior unsecured revolving credit facility (the “New Revolving Credit Facility”) with a syndicate of banks that is scheduled to mature on February 14, 2028. The New Revolving Credit Facility replaced our existing $1.905 billion revolving credit facility, which was terminated in connection with the execution of the new agreement. The New Revolving Credit Facility provides us with a committed borrowing capacity of $1.905 billion, which we have the ability to increase up to $3.00 billion with the consent of lenders. The terms of the New Revolving Credit Facility are substantially the same as the prior revolving credit facility, except that the LIBOR-based interest rate provisions have been replaced with SOFR-based provisions. Toll Brothers, Inc. and substantially all of its home building subsidiaries are guarantors of the borrower’s obligations under the New Revolving Credit Facility.

Under the terms of the New Revolving Credit Facility, at April 30, 2023, our maximum leverage ratio, as defined, was not permitted to exceed 1.75 to 1.00, and we were required to maintain a minimum tangible net worth, as defined, of no less than approximately $4.04 billion. Under the terms of the New Revolving Credit Facility, at April 30, 2023, our leverage ratio was approximately 0.32 to 1.00, and our tangible net worth was approximately $6.37 billion. Based upon the terms of the New Revolving Credit Facility, our ability to repurchase our common stock was limited to approximately $3.63 billion as of April 30, 2023. In addition, under the provisions of the New Revolving Credit Facility, our ability to pay cash dividends was limited to approximately $2.33 billion as of April 30, 2023.

At April 30, 2023, we had no outstanding borrowings under the New Revolving Credit Facility and had approximately $116.0 million of outstanding letters of credit that were issued under the New Revolving Credit Facility. At April 30, 2023, the interest rate on outstanding borrowings under the New Revolving Credit Facility would have been 6.10% per annum.

Loans Payable – Other

“Loans payable – other” primarily represents purchase money mortgages on properties we acquired that the seller had financed, project-level financing, and various revenue bonds that were issued by government entities on our behalf to finance community infrastructure and our manufacturing facilities. At April 30, 2023, the weighted-average interest rate on “Loans payable – other” was 4.22% per annum.

Senior Notes

At April 30, 2023, we had four issues of senior notes outstanding with an aggregate principal amount of $1.60 billion.

In our second quarter of fiscal 2023, we redeemed all $400.0 million principal amount of 4.375% Senior Notes due April 15, 2023, at par, plus accrued interest.

In our first quarter of fiscal 2022, we redeemed the remaining $409.9 million principal amount of 5.875% Senior Notes due February 15, 2022, at par, plus accrued interest.

Mortgage Company Loan Facility

Toll Brothers Mortgage Company (“TBMC”), our wholly owned mortgage subsidiary, has a mortgage warehousing agreement (the “Warehousing Agreement”) with a bank, which has been amended from time to time, to finance the origination of mortgage loans by TBMC. The Warehousing Agreement is accounted for as a secured borrowing under ASC 860, “Transfers and Servicing.” The Warehousing Agreement provides for loan purchases up to $75.0 million, subject to certain sublimits. In addition, the Warehousing Agreement provides for an accordion feature under which TBMC may request that the aggregate commitments under the Warehousing Agreement be increased to an amount up to $150.0 million for a short period of time. The Warehousing Agreement was set to expire, as amended, on March 31, 2023, and borrowings thereunder bore interest at the Bloomberg Short-Term Bank Yield Index Rate (“BSBY”) plus 1.75% per annum (with a BSBY floor of 0.50%). In March 2023, the Warehousing Agreement was amended to extend the expiration date to March 30, 2024 and borrowings thereunder bear interest at BSBY plus 1.75% per annum (with a BSBY floor of 0.50%). At April 30, 2023, the interest rate on the Warehousing Agreement was 6.80% per annum.

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Accrued Expenses

6 Months Ended

Apr. 30, 2023

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

Accrued expenses at April 30, 2023 and October 31, 2022 consisted of the following (amounts in thousands):

	April 30, 2023		October 31, 2022
Land, land development, and construction	$	418,048	$	334,975
Compensation and employee benefits	170,448		223,609
Escrow liability associated with our wholly owned captive title company	40,459		44,115
Self-insurance	245,687		251,576
Warranty	149,395		164,409
Lease liabilities	142,901		139,664
Deferred income	47,846		50,973
Interest	32,212		31,988
Commitments to unconsolidated entities	31,744		26,905
Other	55,457		77,773
	$	1,334,197	$	1,345,987

The table below provides, for the periods indicated, a reconciliation of the changes in our warranty accrual (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Balance, beginning of period	$	156,895	$	143,043	$	164,409	$	145,062
Additions – homes closed during the period	10,084		13,745		17,270		23,200
Change in accruals for homes closed in prior years – net	(73)		715		2,023		3,672
Charges incurred	(17,511)		(13,512)		(34,307)		(27,943)
Balance, end of period	$	149,395	$	143,991	$	149,395	$	143,991

Since fiscal 2014, we have received water intrusion claims from owners of homes built since 2002 in communities located in Pennsylvania and Delaware. Our recorded estimated repair costs to resolve these claims were approximately $44.2 million at April 30, 2023 and $46.9 million at October 31, 2022, and are included in the Warranty accrued expense above. We continue to perform review procedures to assess, among other things, the number of affected homes, whether repairs are likely to be required, and the extent of such repairs.

Our review process, conducted quarterly, includes an analysis of many factors to determine whether a claim is likely to be received and the estimated costs to resolve any such claim, including: the closing dates of the homes; the number of claims received; our inspection of homes; an estimate of the number of homes we expect to repair; the type and cost of repairs that have been performed in each community; the estimated costs to remediate pending and future claims; the expected recovery from our insurance carriers and suppliers; and the previously recorded amounts related to these claims. We also monitor legal developments relating to these types of claims and review the volume, relative merits and adjudication of claims in litigation or arbitration. Our review process includes a number of estimates that are based on assumptions with uncertain outcomes. Due to the degree of judgment required in making these estimates and the inherent uncertainty in potential outcomes, it is reasonably possible that our actual costs and recoveries could differ from those recorded and such differences could be material. In addition, due to such uncertainty, we are unable to estimate the range of any such differences.

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Income Taxes

6 Months Ended

Apr. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We recorded income tax provisions of $110.4 million and $75.2 million for the three months ended April 30, 2023 and 2022, respectively. The effective tax rate was 25.6% for the three months ended April 30, 2023, compared to 25.4% for the three months ended April 30, 2022. We recorded income tax provisions of $172.6 million and $124.1 million for the six months ended April 30, 2023 and 2022, respectively. The effective tax rate was 25.2% for the six months ended April 30, 2023, compared to 25.0% for the six months ended April 30, 2022. The income tax provisions for all periods included the provision for state income taxes, interest accrued on anticipated tax assessments, excess tax benefits related to stock-based compensation, federal energy efficient home credits and other permanent differences.

We are subject to state tax in the jurisdictions in which we operate. We estimate our state tax liability based upon the individual taxing authorities’ regulations, estimates of income by taxing jurisdiction, and our ability to utilize certain tax-saving strategies.

Based on our estimate of the allocation of income or loss among the various taxing jurisdictions and changes in tax regulations and their impact on our tax strategies, we estimate that our state income tax rate for the full fiscal year 2023 will be approximately 5.7%. Our state income tax rate for the full fiscal year 2022 was 5.6%.

At April 30, 2023, we had $5.8 million of gross unrecognized tax benefits, including interest and penalties. If these unrecognized tax benefits were to reverse in the future, they would have a beneficial impact on our effective tax rate at that time. During the next 12 months, it is reasonably possible that our unrecognized tax benefits will change, but we are not able to provide a range of such change. The possible changes would be principally due to the expiration of tax statutes, settlements with taxing jurisdictions, increases due to new tax positions taken, and the accrual of estimated interest and penalties.

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Stock-Based Benefit Plans

6 Months Ended

Apr. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Benefit Plans

Stock-Based Benefit Plans

We grant stock options and various types of restricted stock units to our employees and our non-employee directors. Additionally, we have an employee stock purchase plan that allows employees to purchase our stock at a discount. Information regarding the amount of total stock-based compensation expense and tax benefit recognized by us, for the periods indicated, is as follows (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Total stock-based compensation expense recognized	$	2,641	$	3,405	$	17,025	$	17,020
Income tax benefit recognized	$	666	$	855	$	4,304	$	4,268

At April 30, 2023 and October 31, 2022, the aggregate unamortized value of unvested stock-based compensation awards was approximately $21.8 million and $15.5 million, respectively.

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Stockholders' Equity

6 Months Ended

Apr. 30, 2023

Stock Repurchase Program [Abstract]

Stockholders’ Equity

Stockholders’ Equity

Stock Repurchase Program

From time to time since fiscal 2017, our Board of Directors has renewed its authorization to repurchase up to 20 million shares of our common stock in open market transactions, privately negotiated transactions (including accelerated share repurchases), issuer tender offers or other financial arrangements or transactions. Most recently, on May 17, 2022, our Board of Directors renewed its authorization to repurchase 20 million shares of our common stock. Shares may be repurchased for general corporate purposes, including to obtain shares for the Company’s equity awards and other employee benefit plans. The Board of Directors did not fix any expiration date for this repurchase program.

The table below provides, for the periods indicated, information about our share repurchase programs:

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Number of shares purchased (in thousands)	1,443		2,205		1,630		5,219
Average price per share	$	58.14	$	48.30	$	57.20	$	56.01
Remaining authorization at April 30 (in thousands)	12,947		7,344		12,947		7,344

Cash Dividends

On March 9, 2023, our Board of Directors approved an increase in our quarterly cash dividend from $0.20 per share to $0.21 per share, which was previously increased from $0.17 to $0.20 in March 2022. During the three month periods ended April 30, 2023 and 2022, we declared and paid cash dividends of $0.21 and $0.20 per share, respectively, to our shareholders. During the six months ended April 30, 2023 and 2022, we declared and paid cash dividends of $0.41 and $0.37 per share, respectively, to our shareholders.

Accumulated Other Comprehensive Income (Loss)

The changes in each component of accumulated other comprehensive income (loss) (“AOCI”), for the periods indicated, were as follows (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Employee Retirement Plans
Beginning balance	$	2,492	$	(5,685)	$	2,475	$	(6,024)
Losses reclassified from AOCI to net income (1)	24		451		47		903
Less: Tax benefit (2)	(6)		(113)		(12)		(226)
Net losses reclassified from AOCI to net income	18		338		35		677
Other comprehensive loss – net of tax	18		338		35		677
Ending balance	$	2,510	$	(5,347)	$	2,510	$	(5,347)
Derivative Instruments
Beginning balance	$	31,662	$	11,496	$	35,143	$	7,133
Gains (losses) on derivative instruments	588		17,616		(3,709)		23,363
Less: Tax (expense) benefit	(138)		(4,425)		948		(5,866)
Net gains (losses) on derivative instruments	450		13,191		(2,761)		17,497
(Gains) losses reclassified from AOCI to net income (3)	(1,000)		106		(1,362)		182
Less: Tax expense (benefit) (2)	253		(27)		345		(46)
Net (gains) losses reclassified from AOCI to net income	(747)		79		(1,017)		136
Other comprehensive (income) loss – net of tax	(297)		13,270		(3,778)		17,633
Ending balance	$	31,365	$	24,766	$	31,365	$	24,766
Total AOCI ending balance	$	33,875	$	19,419	$	33,875	$	19,419

(1) Reclassified to “Other income – net”

(2) Reclassified to “Income tax provision”

(3) Reclassified to “Cost of revenues – home sales”

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Earnings Per Share Information

6 Months Ended

Apr. 30, 2023

Earnings Per Share [Abstract]

Earnings per Share Information

Earnings per Share Information

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

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Numerator:
Net income as reported	$	320,216	$	220,593	$	511,746	$	372,497
Denominator:
Basic weighted-average shares	111,214		117,839		111,306		119,418
Common stock equivalents (1)	970		1,086		954		1,473
Diluted weighted-average shares	112,184		118,925		112,260		120,891
Other information:
Weighted-average number of antidilutive options and restricted stock units (2)	168		214		334		209
Shares issued under stock incentive and employee stock purchase plans	103		17		1,437		424

(1)    Common stock equivalents represent the dilutive effect of outstanding in-the-money stock options using the treasury stock method and shares expected to be issued upon the conversion of restricted stock units under our equity award programs.

(2)    Weighted-average number of antidilutive options and restricted stock units are based upon the average closing price of our common stock on the New York Stock Exchange for the period.

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Fair Value Disclosures

6 Months Ended

Apr. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Disclosures

Financial Instruments

The table below provides, as of the dates indicated, a summary of assets/(liabilities) related to our financial instruments, measured at fair value on a recurring basis (amounts in thousands):

		Fair value
Financial Instrument	Fair value hierarchy	April 30, 2023		October 31, 2022
Residential Mortgage Loans Held for Sale	Level 2	$	112,603	$	185,150
Forward Loan Commitments — Residential Mortgage Loans Held for Sale	Level 2	$	1,396	$	9,184
Interest Rate Lock Commitments (“IRLCs”)	Level 2	$	(2,884)	$	(17,734)
Forward Loan Commitments — IRLCs	Level 2	$	2,884	$	17,734
Interest Rate Swap Contracts	Level 2	$	33,214	$	45,010

At April 30, 2023 and October 31, 2022, the carrying value of cash and cash equivalents, escrow cash held by our wholly owned captive title company, and customer deposits held in escrow approximated fair value.

The fair values of the interest rate swap contracts are included in “Receivables, prepaid expenses and other assets” in our Condensed Consolidated Balance Sheets and are determined using widely accepted valuation techniques including discounted cash flow analysis based on the expected cash flows of each swap contract. Although the Company has determined that the significant inputs, such as interest yield curve and discount rate, used to value its interest rate swap contracts fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our counterparties and our own credit risk utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of April 30, 2023, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our interest rate swap contract positions and have determined that the credit valuation adjustments were not significant to the overall valuation of our interest rate swap contracts. As a result, we have determined that our interest rate swap contracts valuations in their entirety are classified in Level 2 of the fair value hierarchy.

Mortgage Loans Held for Sale

At the end of the reporting period, we determine the fair value of our mortgage loans held for sale and the forward loan commitments we have entered into as a hedge against the interest rate risk of our mortgage loans and commitments using the market approach to determine fair value.

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

	Aggregate unpaid principal balance		Fair value		Fair value greater (less) than principal balance
At April 30, 2023	$	115,286	$	112,603	$	(2,683)
At October 31, 2022	$	193,746	$	185,150	$	(8,596)

Inventory

We recognize inventory impairment charges and land 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. Estimated fair value is primarily determined by discounting the estimated future cash flow of each community. In determining the fair value related to land impairments, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. We record land impairments related to land parcels we plan to sell to third parties within land sales and other cost of revenues. See Note 1, “Significant Accounting Policies – Inventory,” in our 2022 Form 10-K for additional information regarding our methodology for determining fair value. Impairments on operating communities were insignificant during the three-month and six-month periods ended April 30, 2023 and 2022 and, accordingly, we did not disclose the ranges of certain quantitative unobservable inputs utilized in determining the fair value of such impaired operating communities.

Debt

The table below provides, as of the dates indicated, the book value, excluding any bond discounts, premiums, and deferred issuance costs, and estimated fair value of our debt (amounts in thousands):

		April 30, 2023				October 31, 2022
	Fair value hierarchy	Book value		Estimated fair value		Book value		Estimated fair value
Loans payable (1)	Level 2	$	1,139,869	$	1,123,766	$	1,187,043	$	1,180,893
Senior notes (2)	Level 1	1,600,000		1,536,985		2,000,000		1,822,255
Mortgage company loan facility (3)	Level 2	102,489		102,489		148,863		148,863
		$	2,842,358	$	2,763,240	$	3,335,906	$	3,152,011

(1)    The estimated fair value of loans payable was based upon contractual cash flows discounted at interest rates that we believed were available to us for loans with similar terms and remaining maturities as of the applicable valuation date.

(2)    The estimated fair value of our senior notes is based upon their market prices as of the applicable valuation date.

(3)    We believe that the carrying value of our mortgage company loan borrowings approximates their fair value.

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Other Income - Net

6 Months Ended

Apr. 30, 2023

Other Income and Expenses [Abstract]

Other Income - net

Other Income – Net

The table below provides the significant components of other income – net (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Income (loss) from ancillary businesses	$	2,858	$	12,334	$	(91)	$	14,294
Management fee income earned by home building operations	659		1,037		2,062		2,375
Gain on litigation settlements – net	—		—		27,683		—
Other	6,663		(2,147)		13,441		(1,733)
Total other income – net	$	10,180	$	11,224	$	43,095	$	14,936

Income from ancillary businesses is generated by our mortgage, title, landscaping, smart home technology, Gibraltar, apartment living and golf course and country club operations. The table below provides, for the periods indicated, revenues and expenses for our ancillary businesses (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Revenues	$	33,275	$	31,890	$	61,181	$	59,586
Expenses	$	30,417	$	19,556	$	61,272	$	45,292

In the three-month and six-month periods ended April 30, 2022, our smart home technology business recognized a $9.0 million gain from a bulk sale of security monitoring accounts, which is included in income from ancillary businesses above.

In addition, in the three months ended April 30, 2023 and 2022, our apartment living operations earned fees from unconsolidated entities of $6.4 million and $4.8 million, respectively. In the six-month periods ended April 30, 2023 and 2022, our apartment living operations earned fees from unconsolidated entities of $12.6 million and $9.6 million, respectively. Fees earned by our apartment living operations are included in income from ancillary businesses.

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Commitments and Contingencies

6 Months Ended

Apr. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

Legal Proceedings

We are involved in various claims and litigation arising principally in the ordinary course of business. We believe that adequate provision for resolution of all current claims and pending litigation has been made and that the disposition of these matters will not have a material adverse effect on our results of operations and liquidity or on our financial condition.

Land Purchase Contracts

Generally, our agreements to acquire land parcels do not require us to purchase those land parcels, although we, in some cases, forfeit any deposit balance outstanding if and when we terminate an agreement. Information regarding our land purchase contracts, as of the dates indicated, is provided in the table below (amounts in thousands):

	April 30, 2023		October 31, 2022
Aggregate purchase price:
Unrelated parties	$	4,031,720	$	4,279,660
Unconsolidated entities that the Company has investments in	33,503		42,057
Total	$	4,065,223	$	4,321,717
Deposits against aggregate purchase price	$	450,800	$	463,452
Additional cash required to acquire land	3,614,423		3,858,265
Total	$	4,065,223	$	4,321,717
Amount of additional cash required to acquire land included in accrued expenses	$	119,141	$	34,994

In addition, we expect to purchase approximately 8,400 additional home sites over a number of years from several joint ventures in which we have interests; the purchase prices of these home sites will be determined at a future date.

At April 30, 2023, we also had purchase contracts to acquire land for apartment developments of approximately $330.8 million, of which we had outstanding deposits in the amount of $13.2 million. We intend to acquire and develop these projects in joint ventures with unrelated parties in the future.

We have additional land parcels under option that have been excluded from the aggregate purchase price 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.

Investments in Unconsolidated Entities

At April 30, 2023, we had investments in a number of unconsolidated entities, were committed to invest or advance additional funds, and had guaranteed a portion of the indebtedness and/or loan commitments of these entities. See Note 3, “Investments in Unconsolidated Entities,” for more information regarding our commitments to these entities.

Surety Bonds and Letters of Credit

At April 30, 2023, we had outstanding surety bonds amounting to $836.6 million, primarily related to our obligations to governmental entities to construct improvements in our communities. We estimate that approximately $344.2 million of work remains on these improvements. We have an additional $303.9 million of surety bonds outstanding that guarantee other obligations. We do not believe that it is probable that any outstanding bonds will be drawn upon.

At April 30, 2023, we had outstanding letters of credit of $116.0 million under our New Revolving Credit Facility. These letters of credit were issued to secure various financial obligations, including insurance policy deductibles and other claims, land deposits, and security to complete improvements in communities in which we are operating. We do not believe that it is probable that any outstanding letters of credit will be drawn upon.

At April 30, 2023, we had provided financial guarantees of $25.7 million related to fronted letters of credit to secure obligations related to certain of our insurance policy deductibles and other claims.

Backlog

At April 30, 2023, we had agreements of sale outstanding to deliver 7,574 homes with an aggregate sales value of $8.38 billion.

Mortgage Commitments

Our mortgage subsidiary provides mortgage financing for a portion of our home closings. For those home buyers to whom our mortgage subsidiary provides mortgages, we determine whether the home buyer qualifies for the mortgage based upon information provided by the home buyer and other sources. For those home buyers who qualify, our 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, our mortgage subsidiary agrees to sell the proposed mortgage loan to one of several outside recognized mortgage financing institutions (“investors”) that is willing to honor the terms and conditions, including interest rate, committed to the home buyer. We believe that these investors have adequate financial resources to honor their commitments to our mortgage subsidiary.

Mortgage loans are sold to investors with limited recourse provisions derived from industry-standard representations and warranties in the relevant agreements. These representations and warranties primarily involve the absence of misrepresentations by the borrower or other parties, the appropriate underwriting of the loan and in some cases, a required minimum number of payments to be made by the borrower. The Company generally does not retain any other continuing interest related to mortgage loans sold in the secondary market.

Information regarding our mortgage commitments, as of the dates indicated, is provided in the table below (amounts in thousands):

	April 30, 2023		October 31, 2022
Aggregate mortgage loan commitments:
IRLCs	$	452,156	$	669,631
Non-IRLCs	2,030,535		2,429,063
Total	$	2,482,691	$	3,098,694
Investor commitments to purchase:
IRLCs	$	452,156	$	669,631
Mortgage loans held for sale	106,006		186,666
Total	$	558,162	$	856,297

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Information on Segments

6 Months Ended

Apr. 30, 2023

Segment Reporting [Abstract]

Information on Segments

Information on Segments

We operate in the following five geographic segments, with current operations generally located in the states listed below:

Eastern Region:

•The North region: Connecticut, Delaware, Illinois, Massachusetts, Michigan, New Jersey, New York and Pennsylvania;

•The Mid-Atlantic region: Georgia, Maryland, North Carolina, Tennessee and Virginia;

•The South region: Florida, South Carolina and Texas;

Western Region:

•The Mountain region: Arizona, Colorado, Idaho, Nevada and Utah;

•The Pacific region: California, Oregon and Washington.

Our geographic reporting segments are consistent with how our chief operating decision makers are assessing operating performance and allocating capital.

At October 31, 2022, we concluded that our City Living operations were no longer a reportable operating segment, primarily due to their insignificance as a result of the change in structure and shift in strategy. Amounts reported in prior periods have been restated to conform to the fiscal 2023 presentation. The realignment did not have any impact on our consolidated financial position, results of operations, earnings per share or cash flows for the periods presented.

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

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
			(restated)				(restated)
Revenues:
North	$	381,316	$	398,907	$	704,110	$	754,041
Mid-Atlantic	309,587		268,250		498,704		511,127
South	519,351		326,351		912,232		569,870
Mountain	674,234		653,558		1,154,446		1,115,858
Pacific	605,870		541,495		970,638		926,444
Total home building	2,490,358		2,188,561		4,240,130		3,877,340
Corporate and other	(260)		(2,032)		(610)		(3,459)
	2,490,098		2,186,529		4,239,520		3,873,881
Land sales and other revenues	16,881		91,012		47,628		194,741
Total consolidated	$	2,506,979	$	2,277,541	$	4,287,148	$	4,068,622
Income (loss) before income taxes:
North	$	50,922	$	50,717	$	87,556	$	96,384
Mid-Atlantic	64,428		43,837		87,351		77,285
South	88,721		42,974		141,167		65,551
Mountain	133,942		104,962		221,246		175,973
Pacific	157,524		116,743		236,501		179,798
Total home building	495,537		359,233		773,821		594,991
Corporate and other	(64,945)		(63,418)		(89,433)		(98,360)
Total consolidated	$	430,592	$	295,815	$	684,388	$	496,631

“Corporate and other” is comprised principally of general corporate expenses such as our executive offices; 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 our apartment rental development business and our high-rise urban luxury condominium business, and income from our Rental Property Joint Ventures and Gibraltar Joint Ventures.

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

	April 30, 2023		October 31, 2022
North	$	1,394,986	$	1,464,995
Mid-Atlantic	1,143,351		1,049,043
South	2,371,522		2,137,568
Mountain	2,781,482		2,785,603
Pacific	2,240,371		2,174,065
Total home building	9,931,712		9,611,274
Corporate and other	2,057,764		2,677,440
Total consolidated	$	11,989,476	$	12,288,714

“Corporate and other” is comprised principally of cash and cash equivalents, restricted cash, investments in our Rental Property Joint Ventures, expected recoveries from insurance carriers and suppliers, our Gibraltar investments and operations, manufacturing facilities, and our mortgage and title subsidiaries.

The amounts we have provided for inventory impairment charges and the expensing of costs that we believe not to be recoverable, for the periods indicated, which are included in home sales cost of revenues, were as follows (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
			(restated)				(restated)
North	$	290	$	443	$	431	$	769
Mid-Atlantic	5,080		706		6,320		1,145
South	30		466		481		609
Mountain	5,487		342		5,618		444
Pacific	182		235		6,223		1,458
Total consolidated	$	11,069	$	2,192	$	19,073	$	4,425

We have also recognized $4.7 million of land impairment charges included in land sales and other cost of revenues during the three-month period ended April 30, 2023, of which $2.2 million and $2.5 million were in our Pacific and Corporate and other segments, respectively. In the six-month period ended April 30, 2023, we recognized $17.7 million of land impairment charges included in land sales and other cost of revenues, of which $2.7 million, $10.3 million, $2.2 million, and $2.5 million were in our North, Mid-Atlantic, Pacific and Corporate and other segments, respectively. We recognized $5.2 million of similar charges in our North segment during the three-month or six-month periods ended April 30, 2022

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Supplemental Disclosure to Condensed Consolidated Statements of Cash Flows

6 Months Ended

Apr. 30, 2023

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosure to Statements of Cash Flows

Supplemental Disclosure to Condensed Consolidated Statements of Cash FlowsThe following are supplemental disclosures to the Condensed Consolidated Statements of Cash Flows, for the periods indicated (amounts in thousands):

	Six months ended April 30,
	2023		2022
Cash flow information:
Income tax paid – net	$	291,196	$	131,658
Noncash activity:
Cost of inventory acquired through seller financing, municipal bonds, or included in accrued expenses - net	$	110,759	$	180,576
Accrued treasury share purchases	$	—	$	8,003
Transfer of other assets to investment in unconsolidated entities - net	$	2,765	$	55,202
Transfer of other assets to property, construction and office equipment - net	$	12,268	$	—
Unrealized (loss) gain on derivatives	$	(11,796)	$	23,731
	At April 30,
	2023		2022
Cash, cash equivalents, and restricted cash
Cash and cash equivalents	$	761,945	$	535,038
Restricted cash included in receivables, prepaid expenses, and other assets	47,716		52,863
Total cash, cash equivalents, and restricted cash shown on the Condensed Consolidated Statements of Cash Flows	$	809,661	$	587,901

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Significant Accounting Policies (Policies)

6 Months Ended

Apr. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Our condensed consolidated financial statements include the accounts of Toll Brothers, Inc. (the “Company,” “we,” “us,” or “our”), a Delaware corporation, and its majority owned subsidiaries. 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 we have effective control of the entity, in which case we would consolidate the entity.

Our 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, 2022 balance sheet amounts and disclosures have been derived from our October 31, 2022 audited financial statements. Since the 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, they should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022 (“2022 Form 10-K”). In the opinion of management, the unaudited condensed consolidated financial statements include all recurring adjustments necessary to present fairly our financial position as of April 30, 2023; the results of our operations and changes in equity for the three-month and six-month periods ended April 30, 2023 and 2022; and our cash flows for the six-month periods ended April 30, 2023 and 2022. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

Use of Estimates, Policy

Use of Estimates

The preparation of financial statements in accordance with GAAP requires estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Estimates and assumptions may prove to be incorrect for a variety of reasons, whether as a result of the risks and uncertainties our business is subject to or for other reasons. In times of economic disruption when uncertainty regarding future economic conditions is heightened, our estimates and assumptions are subject to greater variability. Actual results could differ from the estimates and assumptions we make and such differences may be material.

Revenue Recognition

Revenue Recognition

Home sales revenues: Revenues and cost of revenues from home sales are recognized at the time each home is delivered and title and possession are transferred to the buyer. For the majority of our home closings, our performance obligation to deliver a home is satisfied in less than one year from the date a binding sale agreement is signed. In certain states where we build, we are not able to complete certain outdoor features prior to the closing of the home. To the extent these separate performance obligations are not complete upon the home closing, we defer a portion of the home sales revenues related to these obligations and subsequently recognize the revenue upon completion of such obligations. As of April 30, 2023, the home sales revenues and related costs we deferred related to these obligations were immaterial. Our contract liabilities, consisting of deposits received from customers for sold but undelivered homes, totaled $662.6 million and $680.6 million at April 30, 2023 and October 31, 2022, respectively. Of the outstanding customer deposits held as of October 31, 2022, we recognized $152.2 million and $275.1 million in home sales revenues during the three months and six months ended April 30, 2023. Of the outstanding customer deposits held as of October 31, 2021, we recognized $132.9 million and $243.8 million in home sales revenues during the three and six months ended April 30, 2022.

Land sales and other revenues: Our revenues from land sales and other generally consist of: (1) land sales to joint ventures in which we retain an interest; (2) lot sales to third-party builders within our master-planned communities; (3) bulk sales to third parties of land we have decided no longer meets our development criteria; and (4) sales of commercial and retail properties generally located at our high-rise urban luxury condominium buildings. In general, our performance obligation for each of these land sales is fulfilled upon the delivery of the land, which generally coincides with the receipt of cash consideration from the counterparty. For land sale transactions that contain repurchase options, revenues and related costs are not recognized until the repurchase option expires. In addition, when we sell land to a joint venture in which we retain an interest, we do not recognize revenue or gains on the sale to the extent of our retained interest in such joint venture.

Forfeited Customer Deposits: Forfeited customer deposits are recognized in “Home sales revenues” in our Condensed Consolidated Statements of Operations and Comprehensive Income in the period in which we determine that the customer will not complete the purchase of the home and we have the right to retain the deposit.

Sales Incentives: In order to promote sales of our homes, we may offer our home buyers sales incentives. These incentives vary by type of incentive and by amount on a community-by-community and home-by-home basis. Incentives are reflected as a reduction in home sales revenues. Incentives are recognized at the time the home is delivered to the home buyer and we receive the sales proceeds.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “Reference Rate Reform (Topic 848),” as amended by ASU 2021-01 in January 2021 and ASU 2022-06 in December 2022 (“ASC 848”), directly addressing the effects of reference rate reform on financial reporting as a result of the cessation of the publication of certain London Interbank Offered Rate (“LIBOR”) rates beginning December 31, 2021. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform by virtue of referencing LIBOR or another reference rate expected to be discontinued. This guidance became effective on March 12, 2020 and can be adopted no later than December 31, 2024, with early adoption permitted. We elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance on our consolidated financial statements and may apply other elections as applicable as additional changes in the market occur.

Reclassification

ReclassificationCertain prior period amounts have been reclassified to conform to the fiscal 2023 presentation.

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Inventory (Tables)

6 Months Ended

Apr. 30, 2023

Inventory Disclosure [Abstract]

Inventory

Inventory at April 30, 2023 and October 31, 2022 consisted of the following (amounts in thousands):

	April 30, 2023		October 31, 2022
Land controlled for future communities	$	170,613	$	240,751
Land owned for future communities	876,561		808,851
Operating communities	8,060,704		7,683,724
	$	9,107,878	$	8,733,326

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

The amounts we have provided for inventory impairment charges and the expensing of costs that we believe not to be recoverable, for the periods indicated, which are included in home sales cost of revenues, are shown in the table below (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Land controlled for future communities	$	5,844	$	2,192	$	8,448	$	2,985
Land owned for future communities	325		—		325		1,440
Operating communities	4,900		—		10,300		—
	$	11,069	$	2,192	$	19,073	$	4,425

Interest incurred, capitalized and expensed

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

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Interest capitalized, beginning of period	$	215,197	$	247,942	$	209,468	$	253,938
Interest incurred	37,862		31,888		74,716		62,893
Interest expensed to home sales cost of revenues	(37,558)		(40,822)		(62,638)		(73,259)
Interest expensed to land sales and other cost of revenues	(1,350)		(219)		(4,827)		(3,628)
Interest capitalized on investments in unconsolidated entities	(2,668)		(1,516)		(5,161)		(2,806)
Previously capitalized interest transferred to investments in unconsolidated entities	—		—		(244)		—
Previously capitalized interest on investments in unconsolidated entities transferred to inventory	277		60		446		195
Interest capitalized, end of period	$	211,760	$	237,333	$	211,760	$	237,333

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Investments in Unconsolidated Entities (Tables)

6 Months Ended

Apr. 30, 2023

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Summary of Joint Venture Information

he table below provides information as of April 30, 2023, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Number of unconsolidated entities	16		3		43		4		66
Investment in unconsolidated entities (1)	$	341,358	$	66,271	$	468,336	$	11,678	$	887,643
Number of unconsolidated entities with funding commitments by the Company	9		—		22		1		32
Company’s remaining funding commitment to unconsolidated entities (2)	$	215,524	$	—	$	107,524	$	11,570	$	334,618

(1)    Our total investment includes $104.8 million related to 13 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $201.2 million as of April 30, 2023. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 20% to 50%.

(2)    Our remaining funding commitment includes approximately $106.2 million related to our unconsolidated joint venture-related variable interests in VIEs.

The table below provides information as of October 31, 2022, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Number of unconsolidated entities	15		3		41		4		63
Investment in unconsolidated entities (1)	$	343,314	$	49,385	$	441,399	$	18,216	$	852,314
Number of unconsolidated entities with funding commitments by the Company	9		1		18		1		29
Company’s remaining funding commitment to unconsolidated entities (2)	$	180,812	$	20,072	$	90,900	$	12,533	$	304,317

(1)    Our total investment includes $100.2 million related to 13 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $200.0 million as of October 31, 2022. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 20% to 50%.

(2)    Our remaining funding commitment includes approximately $105.0 million related to our unconsolidated joint venture-related variable interests in VIEs.

Summary of Joint Ventures Borrowing information

Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at April 30, 2023, regarding the debt financing obtained by category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Total
Number of joint ventures with debt financing	11		2		40		53
Aggregate loan commitments	$	576,959	$	219,650	$	3,638,795	$	4,435,404
Amounts borrowed under loan commitments	$	449,637	$	78,114	$	2,036,446	$	2,564,197

The table below provides information at October 31, 2022, regarding the debt financing obtained by category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Total
Number of joint ventures with debt financing	10		2		35		47
Aggregate loan commitments	$	557,185	$	219,650	$	3,317,261	$	4,094,096
Amounts borrowed under loan commitments	$	444,306	$	17,583	$	1,774,567	$	2,236,456

New joint venture formations

The table below provides information on joint ventures entered into during the six-months ended April 30, 2023 ($ amounts in thousands):

	Land Development Joint Ventures		Rental Property Joint Ventures
Number of unconsolidated joint ventures entered into during the period	1		2
Investment balance at April 30, 2023	$	11,755	$	4,795

The table below provides information on joint ventures entered into during the six-months ended April 30, 2022 ($ amounts in thousands):

	Land Development Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures
Number of unconsolidated joint ventures entered into during the period	2		7		1
Investment balance at April 30, 2022	$	13,816	$	69,513	$	2,093

Summary of Unconsolidated Entities Debt Obligations, Loan Commitments and Guarantees

Information with respect to certain of the Company’s unconsolidated entities’ outstanding debt obligations, loan commitments and our guarantees thereon are as follows ($ amounts in thousands):

	April 30, 2023		October 31, 2022
Loan commitments in the aggregate	$	3,181,400	$	2,858,800
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1)	$	654,400	$	597,800
Debt obligations borrowed in the aggregate	$	1,436,200	$	1,110,900
Our maximum estimated exposure under repayment and carry cost guarantees of the debt obligations borrowed	$	487,600	$	390,500
Estimated fair value of guarantees provided by us related to debt and other obligations	$	19,000	$	16,900
Terms of guarantees	1 month - 3.9 years		1 month - 3.7 years

(1)    At April 30, 2023 and October 31, 2022, our maximum estimated exposure under repayment and carry cost guarantees includes approximately $95.0 million related to our unconsolidated Joint Venture VIEs.

Consolidated Joint Venture Related Variable Interest Entities

The table below provides information as of April 30, 2023 and October 31, 2022, regarding our consolidated joint venture-related variable interests in VIEs ($ amounts in thousands):

	Balance Sheet Classification	April 30, 2023		October 31, 2022
Number of Joint Venture VIEs that the Company is the primary beneficiary and consolidates		6		5
Carrying value of consolidated VIEs assets	Inventory and investments in unconsolidated entities	$	84,300	$	81,300
Our partners’ interests in consolidated VIEs	Noncontrolling interest	$	9,600	$	9,700

Our ownership interest in the above consolidated Joint Venture VIEs ranges from 80% to 98%.

Condensed balance sheet

Condensed Combined Balance Sheets:

	April 30, 2023		October 31, 2022
Cash and cash equivalents	$	135,511	$	254,884
Inventory	1,342,879		1,256,215
Loans receivable – net	44,807		48,217
Rental properties	1,887,721		1,702,690
Rental properties under development	1,596,007		1,413,607
Other assets	364,735		305,250
Total assets	$	5,371,660	$	4,980,863
Debt – net of deferred financing costs	$	2,555,116	$	2,248,754
Other liabilities	392,710		399,818
Partners’ equity	2,423,834		2,332,291
Total liabilities and equity	$	5,371,660	$	4,980,863
Company’s net investment in unconsolidated entities (1)	$	887,643	$	852,314

(1)    Our underlying equity in the net assets of the unconsolidated entities was less than our net investment in unconsolidated entities by $4.4 million and $18.5 million as of April 30, 2023 and October 31, 2022, respectively, and these differences are primarily a result of unrealized gains on our retained joint venture interests; distributions from entities in excess of the carrying amount of our net investment; interest capitalized on our investments; other than temporary impairments we have recognized; gains recognized from the sale of our ownership interests; and the estimated fair value of the guarantees provided to the joint ventures.

Condensed statements of operations and comprehensive income

Condensed Combined Statements of Operations:

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Revenues	$	125,397	$	130,771	$	237,116	$	286,523
Cost of revenues	78,613		86,219		137,966		194,701
Other expenses	56,655		39,172		119,729		82,776
Total expenses	135,268		125,391		257,695		277,477
Loss on disposition of loans and real estate owned	—		—		—		(113)
(Loss) income from operations	(9,871)		5,380		(20,579)		8,933
Other (loss) income (2)	(2,276)		7,064		(3,632)		40,410
(Loss) income before income taxes	(12,147)		12,444		(24,211)		49,343
Income tax (benefit) expense	(148)		74		(166)		156
Net (loss) income	(11,999)		12,370		(24,045)		49,187
Company’s (loss) income from unconsolidated entities (3)	$	(5,302)	$	2,933	$	(9,735)	$	24,970

(2)    The six months ended April 30, 2022 includes $29.9 million, related to the sale of assets by our Rental Property Joint Ventures.

(3)    Differences between our (loss) income from unconsolidated entities and the underlying net (loss) income of the entities are primarily a result of distributions from entities in excess of the carrying amount of our investment; promote earned on the gains recognized by joint ventures and those promoted cash flows being distributed; other than temporary impairments we have recognized; recoveries of previously incurred charges; unrealized gains on our retained joint venture interests; gains recognized from the sale of our investment to our joint venture partner; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired.

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Receivables, Prepaid Expenses, and Other Assets (Tables)

6 Months Ended

Apr. 30, 2023

Receivables, prepaid expenses and other assets [Abstract]

Receivables, Prepaid Expenses, and Other Assets [Table Text Block]

Receivables, prepaid expenses, and other assets at April 30, 2023 and October 31, 2022, consisted of the following (amounts in thousands):

	April 30, 2023		October 31, 2022
Expected recoveries from insurance carriers and others	$	35,873	$	41,527
Improvement cost receivable	57,190		60,812
Escrow cash held by our wholly owned captive title company	47,716		51,796
Properties held for rental apartment and commercial development	261,980		224,593
Prepaid expenses	28,312		44,307
Right-of-use asset	118,803		116,660
Derivative assets	37,493		71,929
Other	110,245		135,604
	$	697,612	$	747,228

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Loans Payable, Senior Notes and Mortgage Company Loan Facility Loans Payable (Tables)

6 Months Ended

Apr. 30, 2023

Debt Disclosure [Abstract]

Loans Payable [Text Block]

At April 30, 2023 and October 31, 2022, loans payable consisted of the following (amounts in thousands):

	April 30, 2023		October 31, 2022
Senior unsecured term loan	$	650,000	$	650,000
Loans payable – other	489,869		537,043
Deferred issuance costs	(3,634)		(1,768)
	$	1,136,235	$	1,185,275

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Accrued Expenses (Tables)

6 Months Ended

Apr. 30, 2023

Payables and Accruals [Abstract]

Accrued expenses

Accrued expenses at April 30, 2023 and October 31, 2022 consisted of the following (amounts in thousands):

	April 30, 2023		October 31, 2022
Land, land development, and construction	$	418,048	$	334,975
Compensation and employee benefits	170,448		223,609
Escrow liability associated with our wholly owned captive title company	40,459		44,115
Self-insurance	245,687		251,576
Warranty	149,395		164,409
Lease liabilities	142,901		139,664
Deferred income	47,846		50,973
Interest	32,212		31,988
Commitments to unconsolidated entities	31,744		26,905
Other	55,457		77,773
	$	1,334,197	$	1,345,987

Changes in the warranty accrual

The table below provides, for the periods indicated, a reconciliation of the changes in our warranty accrual (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Balance, beginning of period	$	156,895	$	143,043	$	164,409	$	145,062
Additions – homes closed during the period	10,084		13,745		17,270		23,200
Change in accruals for homes closed in prior years – net	(73)		715		2,023		3,672
Charges incurred	(17,511)		(13,512)		(34,307)		(27,943)
Balance, end of period	$	149,395	$	143,991	$	149,395	$	143,991

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Stock-Based Benefit Plans (Tables)

6 Months Ended

Apr. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-based compensation expense and income tax benefit recognized

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

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Total stock-based compensation expense recognized	$	2,641	$	3,405	$	17,025	$	17,020
Income tax benefit recognized	$	666	$	855	$	4,304	$	4,268

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Stockholders' Equity (Tables)

6 Months Ended

Apr. 30, 2023

Stock Repurchase Program [Abstract]

Stock repurchase program

The table below provides, for the periods indicated, information about our share repurchase programs:

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Number of shares purchased (in thousands)	1,443		2,205		1,630		5,219
Average price per share	$	58.14	$	48.30	$	57.20	$	56.01
Remaining authorization at April 30 (in thousands)	12,947		7,344		12,947		7,344

Schedule of Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The changes in each component of accumulated other comprehensive income (loss) (“AOCI”), for the periods indicated, were as follows (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Employee Retirement Plans
Beginning balance	$	2,492	$	(5,685)	$	2,475	$	(6,024)
Losses reclassified from AOCI to net income (1)	24		451		47		903
Less: Tax benefit (2)	(6)		(113)		(12)		(226)
Net losses reclassified from AOCI to net income	18		338		35		677
Other comprehensive loss – net of tax	18		338		35		677
Ending balance	$	2,510	$	(5,347)	$	2,510	$	(5,347)
Derivative Instruments
Beginning balance	$	31,662	$	11,496	$	35,143	$	7,133
Gains (losses) on derivative instruments	588		17,616		(3,709)		23,363
Less: Tax (expense) benefit	(138)		(4,425)		948		(5,866)
Net gains (losses) on derivative instruments	450		13,191		(2,761)		17,497
(Gains) losses reclassified from AOCI to net income (3)	(1,000)		106		(1,362)		182
Less: Tax expense (benefit) (2)	253		(27)		345		(46)
Net (gains) losses reclassified from AOCI to net income	(747)		79		(1,017)		136
Other comprehensive (income) loss – net of tax	(297)		13,270		(3,778)		17,633
Ending balance	$	31,365	$	24,766	$	31,365	$	24,766
Total AOCI ending balance	$	33,875	$	19,419	$	33,875	$	19,419

(1) Reclassified to “Other income – net”

(2) Reclassified to “Income tax provision”

(3) Reclassified to “Cost of revenues – home sales”

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Earnings Per Share Information (Tables)

6 Months Ended

Apr. 30, 2023

Earnings Per Share [Abstract]

Income per share calculation

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

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Numerator:
Net income as reported	$	320,216	$	220,593	$	511,746	$	372,497
Denominator:
Basic weighted-average shares	111,214		117,839		111,306		119,418
Common stock equivalents (1)	970		1,086		954		1,473
Diluted weighted-average shares	112,184		118,925		112,260		120,891
Other information:
Weighted-average number of antidilutive options and restricted stock units (2)	168		214		334		209
Shares issued under stock incentive and employee stock purchase plans	103		17		1,437		424

(1)    Common stock equivalents represent the dilutive effect of outstanding in-the-money stock options using the treasury stock method and shares expected to be issued upon the conversion of restricted stock units under our equity award programs.

(2)    Weighted-average number of antidilutive options and restricted stock units are based upon the average closing price of our common stock on the New York Stock Exchange for the period.

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Fair Value Disclosures (Tables)

6 Months Ended

Apr. 30, 2023

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

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

The table below provides, as of the dates indicated, a summary of assets/(liabilities) related to our financial instruments, measured at fair value on a recurring basis (amounts in thousands):

		Fair value
Financial Instrument	Fair value hierarchy	April 30, 2023		October 31, 2022
Residential Mortgage Loans Held for Sale	Level 2	$	112,603	$	185,150
Forward Loan Commitments — Residential Mortgage Loans Held for Sale	Level 2	$	1,396	$	9,184
Interest Rate Lock Commitments (“IRLCs”)	Level 2	$	(2,884)	$	(17,734)
Forward Loan Commitments — IRLCs	Level 2	$	2,884	$	17,734
Interest Rate Swap Contracts	Level 2	$	33,214	$	45,010

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

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

	Aggregate unpaid principal balance		Fair value		Fair value greater (less) than principal balance
At April 30, 2023	$	115,286	$	112,603	$	(2,683)
At October 31, 2022	$	193,746	$	185,150	$	(8,596)

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

The table below provides, as of the dates indicated, the book value, excluding any bond discounts, premiums, and deferred issuance costs, and estimated fair value of our debt (amounts in thousands):

		April 30, 2023				October 31, 2022
	Fair value hierarchy	Book value		Estimated fair value		Book value		Estimated fair value
Loans payable (1)	Level 2	$	1,139,869	$	1,123,766	$	1,187,043	$	1,180,893
Senior notes (2)	Level 1	1,600,000		1,536,985		2,000,000		1,822,255
Mortgage company loan facility (3)	Level 2	102,489		102,489		148,863		148,863
		$	2,842,358	$	2,763,240	$	3,335,906	$	3,152,011

(1)    The estimated fair value of loans payable was based upon contractual cash flows discounted at interest rates that we believed were available to us for loans with similar terms and remaining maturities as of the applicable valuation date.

(2)    The estimated fair value of our senior notes is based upon their market prices as of the applicable valuation date.

(3)    We believe that the carrying value of our mortgage company loan borrowings approximates their fair value.

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Other Income - Net (Tables)

6 Months Ended

Apr. 30, 2023

Other Income and Expenses [Abstract]

Other Income - net

The table below provides the significant components of other income – net (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Income (loss) from ancillary businesses	$	2,858	$	12,334	$	(91)	$	14,294
Management fee income earned by home building operations	659		1,037		2,062		2,375
Gain on litigation settlements – net	—		—		27,683		—
Other	6,663		(2,147)		13,441		(1,733)
Total other income – net	$	10,180	$	11,224	$	43,095	$	14,936

Revenues and expenses of non-core ancillary businesses

The table below provides, for the periods indicated, revenues and expenses for our ancillary businesses (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
Revenues	$	33,275	$	31,890	$	61,181	$	59,586
Expenses	$	30,417	$	19,556	$	61,272	$	45,292

In the three-month and six-month periods ended April 30, 2022, our smart home technology business recognized a $9.0 million gain from a bulk sale of security monitoring accounts, which is included in income from ancillary businesses above.

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Commitments and Contingencies (Tables)

6 Months Ended

Apr. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Company land purchase commitments

Information regarding our land purchase contracts, as of the dates indicated, is provided in the table below (amounts in thousands):

	April 30, 2023		October 31, 2022
Aggregate purchase price:
Unrelated parties	$	4,031,720	$	4,279,660
Unconsolidated entities that the Company has investments in	33,503		42,057
Total	$	4,065,223	$	4,321,717
Deposits against aggregate purchase price	$	450,800	$	463,452
Additional cash required to acquire land	3,614,423		3,858,265
Total	$	4,065,223	$	4,321,717
Amount of additional cash required to acquire land included in accrued expenses	$	119,141	$	34,994

Company mortgage commitments

Information regarding our mortgage commitments, as of the dates indicated, is provided in the table below (amounts in thousands):

	April 30, 2023		October 31, 2022
Aggregate mortgage loan commitments:
IRLCs	$	452,156	$	669,631
Non-IRLCs	2,030,535		2,429,063
Total	$	2,482,691	$	3,098,694
Investor commitments to purchase:
IRLCs	$	452,156	$	669,631
Mortgage loans held for sale	106,006		186,666
Total	$	558,162	$	856,297

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Information on Segments (Tables)

6 Months Ended

Apr. 30, 2023

Segment Reporting [Abstract]

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

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

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
			(restated)				(restated)
Revenues:
North	$	381,316	$	398,907	$	704,110	$	754,041
Mid-Atlantic	309,587		268,250		498,704		511,127
South	519,351		326,351		912,232		569,870
Mountain	674,234		653,558		1,154,446		1,115,858
Pacific	605,870		541,495		970,638		926,444
Total home building	2,490,358		2,188,561		4,240,130		3,877,340
Corporate and other	(260)		(2,032)		(610)		(3,459)
	2,490,098		2,186,529		4,239,520		3,873,881
Land sales and other revenues	16,881		91,012		47,628		194,741
Total consolidated	$	2,506,979	$	2,277,541	$	4,287,148	$	4,068,622
Income (loss) before income taxes:
North	$	50,922	$	50,717	$	87,556	$	96,384
Mid-Atlantic	64,428		43,837		87,351		77,285
South	88,721		42,974		141,167		65,551
Mountain	133,942		104,962		221,246		175,973
Pacific	157,524		116,743		236,501		179,798
Total home building	495,537		359,233		773,821		594,991
Corporate and other	(64,945)		(63,418)		(89,433)		(98,360)
Total consolidated	$	430,592	$	295,815	$	684,388	$	496,631

“Corporate and other” is comprised principally of general corporate expenses such as our executive offices; 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 our apartment rental development business and our high-rise urban luxury condominium business, and income from our Rental Property Joint Ventures and Gibraltar Joint Ventures.

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

	April 30, 2023		October 31, 2022
North	$	1,394,986	$	1,464,995
Mid-Atlantic	1,143,351		1,049,043
South	2,371,522		2,137,568
Mountain	2,781,482		2,785,603
Pacific	2,240,371		2,174,065
Total home building	9,931,712		9,611,274
Corporate and other	2,057,764		2,677,440
Total consolidated	$	11,989,476	$	12,288,714

“Corporate and other” is comprised principally of cash and cash equivalents, restricted cash, investments in our Rental Property Joint Ventures, expected recoveries from insurance carriers and suppliers, our Gibraltar investments and operations, manufacturing facilities, and our mortgage and title subsidiaries.

Schedule of inventory impairments by segment

The amounts we have provided for inventory impairment charges and the expensing of costs that we believe not to be recoverable, for the periods indicated, which are included in home sales cost of revenues, were as follows (amounts in thousands):

	Three months ended April 30,				Six months ended April 30,
	2023		2022		2023		2022
			(restated)				(restated)
North	$	290	$	443	$	431	$	769
Mid-Atlantic	5,080		706		6,320		1,145
South	30		466		481		609
Mountain	5,487		342		5,618		444
Pacific	182		235		6,223		1,458
Total consolidated	$	11,069	$	2,192	$	19,073	$	4,425

We have also recognized $4.7 million of land impairment charges included in land sales and other cost of revenues during the three-month period ended April 30, 2023, of which $2.2 million and $2.5 million were in our Pacific and Corporate and other segments, respectively. In the six-month period ended April 30, 2023, we recognized $17.7 million of land impairment charges included in land sales and other cost of revenues, of which $2.7 million, $10.3 million, $2.2 million, and $2.5 million were in our North, Mid-Atlantic, Pacific and Corporate and other segments, respectively. We recognized $5.2 million of similar charges in our North segment during the three-month or six-month periods ended April 30, 2022

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Supplemental Disclosure to Condensed Consolidated Statements of Cash Flows (Tables)

6 Months Ended

Apr. 30, 2023

Supplemental Cash Flow Elements [Abstract]

Supplemental disclosures to the statements of cash flows

The following are supplemental disclosures to the Condensed Consolidated Statements of Cash Flows, for the periods indicated (amounts in thousands):

	Six months ended April 30,
	2023		2022
Cash flow information:
Income tax paid – net	$	291,196	$	131,658
Noncash activity:
Cost of inventory acquired through seller financing, municipal bonds, or included in accrued expenses - net	$	110,759	$	180,576
Accrued treasury share purchases	$	—	$	8,003
Transfer of other assets to investment in unconsolidated entities - net	$	2,765	$	55,202
Transfer of other assets to property, construction and office equipment - net	$	12,268	$	—
Unrealized (loss) gain on derivatives	$	(11,796)	$	23,731
	At April 30,
	2023		2022
Cash, cash equivalents, and restricted cash
Cash and cash equivalents	$	761,945	$	535,038
Restricted cash included in receivables, prepaid expenses, and other assets	47,716		52,863
Total cash, cash equivalents, and restricted cash shown on the Condensed Consolidated Statements of Cash Flows	$	809,661	$	587,901

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Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022	Oct. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract liabilities consisting of customer deposits	$ 662,559		$ 662,559		$ 680,588
Home Building [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract liabilities, revenue recognized	$ 152,200	$ 132,900	$ 275,100	$ 243,800

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Inventory (Details) - USD ($) $ in Thousands	Apr. 30, 2023	Oct. 31, 2022
Total Inventory
Inventory	$ 9,107,878	$ 8,733,326
Land controlled for future communities [Member]
Total Inventory
Inventory	170,613	240,751
Land Owned for Future Communities [Member]
Total Inventory
Inventory	876,561	808,851
Operating communities [Member]
Total Inventory
Inventory	$ 8,060,704	$ 7,683,724

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Inventory (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Schedule of inventory [Line Items]
Inventory Write-down	$ 11,069	$ 2,192	$ 19,073	$ 4,425
Land and Land Improvements
Schedule of inventory [Line Items]
Inventory Write-down	4,700	5,200	17,700	5,200
Land controlled for future communities [Member]
Schedule of inventory [Line Items]
Inventory Write-down	5,844	2,192	8,448	2,985
Land Owned for Future Communities [Member]
Schedule of inventory [Line Items]
Inventory Write-down	325	0	325	1,440
Operating communities [Member]
Schedule of inventory [Line Items]
Inventory Write-down	$ 4,900	$ 0	$ 10,300	$ 0

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Inventory (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
Interest capitalized, beginning of period	$ 215,197	$ 247,942	$ 209,468	$ 253,938
Interest incurred	37,862	31,888	74,716	62,893
Interest capitalized on investments in unconsolidated entities	(2,668)	(1,516)	(5,161)	(2,806)
Real Estate Inventory Capitalized Interest Transferred to Unconsolidated Entities	0	0	(244)	0
Previously capitalized interest on investments in unconsolidated entities transferred to inventory	277	60	446	195
Interest capitalized, end of period	211,760	237,333	211,760	237,333
Home Building [Member]
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
Interest expensed to cost of revenues	(37,558)	(40,822)	(62,638)	(73,259)
Land [Member]
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
Interest expensed to cost of revenues	$ (1,350)	$ (219)	$ (4,827)	$ (3,628)

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Inventory (Details Textual) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023 USD ($)	Apr. 30, 2022 USD ($)	Apr. 30, 2023 USD ($)	Apr. 30, 2022 USD ($)	Oct. 31, 2022 USD ($)
Variable Interest Entity [Line Items]
Purchase obligation	$ 4,065,223		$ 4,065,223		$ 4,321,717
Home Building [Member]
Real estate inventory capitalized interest costs [Line Items]
Interest expensed to cost of revenues	$ 37,558	$ 40,822	$ 62,638	$ 73,259
VariableInterestEntityNotPrimaryBeneficiaryAggregatedDisclosureMember [Member]
Variable Interest Entity [Line Items]
Number of VIE Land Purchase Contracts (in ones)	236		236		237
Interest Rate Swap [Member] | Home Building [Member]
Real estate inventory capitalized interest costs [Line Items]
Interest expensed to cost of revenues	$ (1,000)	106	$ (1,362)	182
Interest Rate Swap [Member] | AOCI Attributable to Parent [Member]
Real estate inventory capitalized interest costs [Line Items]
Interest costs incurred	(588)	$ (17,616)	3,709	$ (23,363)
Land Purchase Commitment To Unrelated Party [Member]
Variable Interest Entity [Line Items]
Purchase obligation	4,031,720		4,031,720		$ 4,279,660
Land Purchase Commitment To Unrelated Party [Member] | VariableInterestEntityNotPrimaryBeneficiaryAggregatedDisclosureMember [Member]
Variable Interest Entity [Line Items]
Purchase obligation	3,750,000		3,750,000		3,890,000
Land Parcel Purchase Commitment [Member]
Variable Interest Entity [Line Items]
Deposits against aggregate purchase commitments	450,800		450,800		463,452
Land Parcel Purchase Commitment [Member] | VariableInterestEntityNotPrimaryBeneficiaryAggregatedDisclosureMember [Member]
Variable Interest Entity [Line Items]
Deposits against aggregate purchase commitments	$ 414,600		$ 414,600		$ 417,600

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Investments in Unconsolidated Entities (Details 1) $ in Thousands	Apr. 30, 2023 USD ($) joint_ventures	Oct. 31, 2022 USD ($) joint_ventures
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_ventures	66	63
Investment in unconsolidated entities (1)	$ 887,643	$ 852,314
Number of joint venture with funding commitments | joint_ventures	32	29
Other commitment	$ 334,618	$ 304,317
Land Development Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_ventures	16	15
Investment in unconsolidated entities (1)	$ 341,358	$ 343,314
Number of joint venture with funding commitments | joint_ventures	9	9
Home Building Joint Ventures, Total [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_ventures	3	3
Investment in unconsolidated entities (1)	$ 66,271	$ 49,385
Number of joint venture with funding commitments | joint_ventures	0	1
Rental Joint Ventures, including the Trust [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_ventures	43	41
Investment in unconsolidated entities (1)	$ 468,336	$ 441,399
Number of joint venture with funding commitments | joint_ventures	22	18
Gibraltar Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_ventures	4	4
Investment in unconsolidated entities (1)	$ 11,678	$ 18,216
Number of joint venture with funding commitments | joint_ventures	1	1
Variable Interest Entity, Not Primary Beneficiary [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_ventures	13	13
Investment in unconsolidated entities (1)	$ 104,800	$ 100,200
Other commitment	$ 106,200	$ 105,000
Variable Interest Entity, Not Primary Beneficiary [Member] | Minimum [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest	20.00%	20.00%
Variable Interest Entity, Not Primary Beneficiary [Member] | Maximum [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest	50.00%	50.00%
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Land Development Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Other commitment	$ 215,524	$ 180,812
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Home Building Joint Ventures, Total [Member]
Schedule of Equity Method Investments [Line Items]
Other commitment	0	20,072
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Rental Joint Ventures, including the Trust [Member]
Schedule of Equity Method Investments [Line Items]
Other commitment	107,524	90,900
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Gibraltar Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Other commitment	11,570	12,533
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Schedule of Equity Method Investments [Line Items]
Other commitment	$ 201,200	$ 200,000

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Investments in Unconsolidated Entities (Details 2) $ in Thousands	Apr. 30, 2023 USD ($) joint_ventures	Oct. 31, 2022 USD ($) joint_ventures
Schedule of Equity Method Investments [Line Items]
Number of joint ventures with loan commitments | joint_ventures	53	47
Line of credit facility, maximum borrowing capacity	$ 4,435,404	$ 4,094,096
Amounts borrowed under commitments	$ 2,564,197	$ 2,236,456
Land Development Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures with loan commitments | joint_ventures	11	10
Line of credit facility, maximum borrowing capacity	$ 576,959	$ 557,185
Amounts borrowed under commitments	$ 449,637	$ 444,306
Home Building Joint Ventures, Total [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures with loan commitments | joint_ventures	2	2
Line of credit facility, maximum borrowing capacity	$ 219,650	$ 219,650
Amounts borrowed under commitments	$ 78,114	$ 17,583
Rental Joint Ventures, including the Trust [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures with loan commitments | joint_ventures	40	35
Line of credit facility, maximum borrowing capacity	$ 3,638,795	$ 3,317,261
Amounts borrowed under commitments	$ 2,036,446	$ 1,774,567

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Investments in Unconsolidated Entities (Details 3) $ in Thousands	6 Months Ended
	Apr. 30, 2023 USD ($) joint_ventures	Apr. 30, 2022 USD ($) joint_ventures	Oct. 31, 2022 USD ($)
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated entities (1)	$ 887,643		$ 852,314
Variable Interest Entity, Primary Beneficiary [Member]
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated entities (1)	84,300		81,300
Land Development Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated entities (1)	341,358		343,314
Rental Joint Ventures, including the Trust [Member]
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated entities (1)	468,336		441,399
Gibraltar Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated entities (1)	$ 11,678		$ 18,216
Newly Formed Joint Ventures [Member] | Land Development Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Number of JVs formed in the period | joint_ventures	1	2
Investment in unconsolidated entities (1)	$ 11,755	$ 13,816
Newly Formed Joint Ventures [Member] | Rental Joint Ventures, including the Trust [Member]
Schedule of Equity Method Investments [Line Items]
Number of JVs formed in the period | joint_ventures	2	7
Investment in unconsolidated entities (1)	$ 4,795	$ 69,513
Newly Formed Joint Ventures [Member] | Gibraltar Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Number of JVs formed in the period | joint_ventures		1
Investment in unconsolidated entities (1)		$ 2,093

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Investments in Unconsolidated Entities (Details 4) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jan. 31, 2023	Apr. 30, 2023	Oct. 31, 2022
Schedule of Equity Method Investments [Line Items]
Line of credit facility, maximum borrowing capacity		$ 4,435,404	$ 4,094,096
Long-term line of credit		2,564,197	2,236,456
Variable Interest Entity, Not Primary Beneficiary [Member]
Schedule of Equity Method Investments [Line Items]
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1)		95,000	95,000
Equity Method Investee [Member]
Schedule of Equity Method Investments [Line Items]
Estimated fair value of guarantees provided by us related to debt and other obligations		19,000	16,900
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member]
Schedule of Equity Method Investments [Line Items]
Line of credit facility, maximum borrowing capacity		3,181,400	2,858,800
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1)		654,400	597,800
Long-term line of credit		1,436,200	1,110,900
Maximum repapyment and carry cost guarantee obligation for borrowings by JV		$ 487,600	$ 390,500
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member] | Minimum [Member]
Schedule of Equity Method Investments [Line Items]
Terms of guarantees	1 month	1 month
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member] | Maximum [Member]
Schedule of Equity Method Investments [Line Items]
Terms of guarantees	3.7 years	3.9 years

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Investments in Unconsolidated Entities (Details 5) $ in Thousands	6 Months Ended
	Apr. 30, 2023 USD ($) joint_ventures	Apr. 30, 2022 USD ($) joint_ventures	Oct. 31, 2022 USD ($) joint_ventures
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of joint ventures | joint_ventures	66		63
Investment in unconsolidated entities (1)	$ 887,643		$ 852,314
Other commitment	$ 334,618		$ 304,317
Variable Interest Entity, Not Primary Beneficiary [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of joint ventures | joint_ventures	13		13
Investment in unconsolidated entities (1)	$ 104,800		$ 100,200
Other commitment	106,200		105,000
Variable Interest Entity, Not Primary Beneficiary [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Other commitment	$ 201,200		$ 200,000
Rental Joint Ventures, including the Trust [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of joint ventures | joint_ventures	43		41
Investment in unconsolidated entities (1)	$ 468,336		$ 441,399
Rental Joint Ventures, including the Trust [Member] | Newly Formed Joint Ventures [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investment in unconsolidated entities (1)	$ 4,795	$ 69,513
Number of JVs formed in the period | joint_ventures	2	7
Rental Joint Ventures, including the Trust [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Other commitment	$ 107,524		$ 90,900
Land Development Joint Ventures [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of joint ventures | joint_ventures	16		15
Investment in unconsolidated entities (1)	$ 341,358		$ 343,314
Land Development Joint Ventures [Member] | Newly Formed Joint Ventures [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investment in unconsolidated entities (1)	$ 11,755	$ 13,816
Number of JVs formed in the period | joint_ventures	1	2
Land Development Joint Ventures [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Other commitment	$ 215,524		$ 180,812
Gibraltar Joint Ventures [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of joint ventures | joint_ventures	4		4
Investment in unconsolidated entities (1)	$ 11,678		$ 18,216
Gibraltar Joint Ventures [Member] | Newly Formed Joint Ventures [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investment in unconsolidated entities (1)		$ 2,093
Number of JVs formed in the period | joint_ventures		1
Gibraltar Joint Ventures [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Other commitment	$ 11,570		$ 12,533
Minimum [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Ownership interest	20.00%		20.00%
Maximum [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Ownership interest	50.00%		50.00%

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Investments in Unconsolidated Entities (Details 6) $ in Thousands	Apr. 30, 2023 USD ($) joint_ventures	Oct. 31, 2022 USD ($) joint_ventures
Statement of Investments in and Advances to Unconsolidated Entities [Line Items]
Number of joint ventures | joint_ventures	66	63
Investment in unconsolidated entities (1)	$ 887,643	$ 852,314
Total assets	$ 11,989,476	$ 12,288,714
Variable Interest Entity, Primary Beneficiary [Member]
Statement of Investments in and Advances to Unconsolidated Entities [Line Items]
Number of joint ventures | joint_ventures	6	5
Investment in unconsolidated entities (1)	$ 84,300	$ 81,300
Noncontrolling Interest in Variable Interest Entity	$ 9,600	$ 9,700
Variable Interest Entity, Primary Beneficiary [Member] | Minimum [Member]
Statement of Investments in and Advances to Unconsolidated Entities [Line Items]
Ownership interest	80.00%
Variable Interest Entity, Primary Beneficiary [Member] | Maximum [Member]
Statement of Investments in and Advances to Unconsolidated Entities [Line Items]
Ownership interest	98.00%

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Investments in Unconsolidated Entities (Details 7) - USD ($) $ in Thousands	Apr. 30, 2023	Oct. 31, 2022	Apr. 30, 2022	Oct. 31, 2021
Condensed Balance Sheets:
Cash and cash equivalents	$ 809,661	$ 1,398,550	$ 587,901	$ 1,684,412
Inventory	9,107,878	8,733,326
Other Assets	110,245	135,604
Total assets	11,989,476	12,288,714
Stockholders' Equity Attributable to Noncontrolling Interest	15,506	15,752
Total liabilities and stockholders' equity	11,989,476	12,288,714
Investments in unconsolidated entities	887,643	852,314
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity	(4,400)	(18,500)
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Condensed Balance Sheets:
Cash and cash equivalents	135,511	254,884
Inventory	1,342,879	1,256,215
Loans Receivable, Net	44,807	48,217
Rental Properties	1,887,721	1,702,690
Rental properties under development	1,596,007	1,413,607
Other Assets	364,735	305,250
Total assets	5,371,660	4,980,863
Debt, net of deferred financing costs	2,555,116	2,248,754
Other Liabilities	392,710	399,818
Members' Equity	2,423,834	2,332,291
Total liabilities and stockholders' equity	5,371,660	4,980,863
Investments in unconsolidated entities	$ 887,643	$ 852,314

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Investments in Unconsolidated Entities (Details 8) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Condensed Statements of Operations and Comprehensive Income:
Income before income taxes	$ 430,592	$ 295,815	$ 684,388	$ 496,631
Income Tax Expense (Benefit)	110,376	75,222	172,642	124,134
Net Income (Loss) Attributable to Noncontrolling Interest	141	(65)	246	(86)
Net income	320,216	220,593	511,746	372,497
Company's (loss) income from unconsolidated entities	(5,302)	2,933	(9,735)	24,970
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Condensed Statements of Operations and Comprehensive Income:
Revenues	125,397	130,771	237,116	286,523
Cost of Revenue	78,613	86,219	137,966	194,701
Other expenses	56,655	39,172	119,729	82,776
Total expenses	135,268	125,391	257,695	277,477
Loss on disposition of loans and real estate owned	0	0	0	(113)
Income before income taxes	(9,871)	5,380	(20,579)	8,933
Other Income	(2,276)	7,064	(3,632)	40,410
Net Income Before Noncontrolling Interest	(12,147)	12,444	(24,211)	49,343
Income Tax Expense (Benefit)	(148)	74	(166)	156
Net income (loss)	(11,999)	12,370	(24,045)	49,187
Company's (loss) income from unconsolidated entities	$ (5,302)	$ 2,933	$ (9,735)	24,970
Gain (Loss) on Disposition of Property Plant Equipment				$ 29,900

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Investments in Unconsolidated Entities (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022	Oct. 31, 2022
Schedule of Equity Method Investments [Line Items]
Line of credit facility, maximum borrowing capacity	$ 4,435,404		$ 4,435,404		$ 4,094,096
Long-term line of credit	2,564,197		2,564,197		2,236,456
Investment in unconsolidated entities (1)	887,643		887,643		852,314
Revenues	2,506,979	$ 2,277,541	4,287,148	$ 4,068,622
Land [Member]
Schedule of Equity Method Investments [Line Items]
Revenues	16,881	$ 91,012	47,628	194,741
Variable Interest Entity, Not Primary Beneficiary [Member]
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated entities (1)	104,800		104,800		100,200
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1)	$ 95,000		$ 95,000		$ 95,000
Rental Joint Ventures, including Trusts i and II [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Realized Gain (Loss) on Disposal				$ 21,000

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Investments in Unconsolidated Entities (Details Textual 1) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023 USD ($) joint_ventures	Apr. 30, 2022 USD ($)	Apr. 30, 2023 USD ($) joint_ventures	Apr. 30, 2022 USD ($)	Oct. 31, 2022 USD ($) joint_ventures
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_ventures	66		66		63
Line of credit facility, maximum borrowing capacity	$ 4,435,404		$ 4,435,404		$ 4,094,096
Proceeds from Equity Method Investment, Distribution			30,447	$ 29,636
Long-term line of credit	2,564,197		2,564,197		2,236,456
Total assets	$ 11,989,476		$ 11,989,476		$ 12,288,714
Co-venturer [Member] | Minimum [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	5.00%		5.00%
Co-venturer [Member] | Maximum [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	50.00%		50.00%
Land Development Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_ventures	16		16		15
Land Development Joint Ventures [Member] | Equity Method Investee [Member]
Schedule of Equity Method Investments [Line Items]
Revenues	$ 52,400	$ 14,100	$ 69,100	37,900
Rental Joint Ventures, including the Trust [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_ventures	43		43		41
Variable Interest Entity, Not Primary Beneficiary [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_ventures	13		13		13
Rental Joint Ventures, including Trusts i and II [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Realized Gain (Loss) on Disposal				21,000
Land sales earnings, net	$ 8,200	73,900	$ 8,200	$ 151,900
Equity Method Investment, Number of Joint Ventures with Realized Gain (Loss) on Disposal Amount	0	$ 0	$ 0
Home Building Joint Ventures, Total [Member]
Schedule of Equity Method Investments [Line Items]
Other than Temporary Impairment Losses, Investments	$ 0

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Receivables, Prepaid Expenses, and Other Assets (Details) - USD ($) $ in Thousands	Apr. 30, 2023	Oct. 31, 2022
Receivables, prepaid expenses and other assets [Abstract]
Expected recoveries from insurance carriers and others	$ 35,873	$ 41,527
Improvement cost receivable	57,190	60,812
Escrow cash held by our wholly owned captive title company	47,716	51,796
Properties held for rental apartment and commercial development	261,980	224,593
Prepaid expenses	28,312	44,307
Right-of-use asset	118,803	116,660
Derivative assets	37,493	71,929
Other Assets	110,245	135,604
Receivables, prepaid expenses and other assets	$ 697,612	$ 747,228
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid Expense and Other Assets	Prepaid Expense and Other Assets

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Loans Payable, Senior Notes and Mortgage Company Loan Facility Loans Payable (Details) - USD ($) $ in Thousands	Apr. 30, 2023	Oct. 31, 2022
Debt Instrument [Line Items]
Other Loans Payable	$ 489,869	$ 537,043
Loans payable	1,136,235	1,185,275
Senior unsecured term loan [Member]
Debt Instrument [Line Items]
Unsecured Long-term Debt, Noncurrent	650,000	650,000
Deferred Finance Costs, Net	$ (3,634)	$ (1,768)

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Loans Payable, Senior Notes and Mortgage Company Loan Facility Term Loan Facility (Details Textual 1) $ in Thousands	6 Months Ended
	Apr. 30, 2023 USD ($)	Feb. 14, 2023 USD ($)	Oct. 31, 2022 USD ($)	Oct. 31, 2021 USD ($)	Nov. 30, 2020 USD ($) numberOfInterestRateSwaps
Senior unsecured term loan due February 14 2028
Debt Instrument [Line Items]
Repayments of Debt	$ 0
Senior unsecured term loan [Member]
Debt Instrument [Line Items]
Unsecured Long-term Debt, Noncurrent	$ 650,000		$ 650,000
Senior unsecured term loan [Member] | Interest Rate Swap [Member]
Debt Instrument [Line Items]
Unsecured Long-term Debt, Noncurrent					$ 400,000
Number of Interest Rate Derivatives Held | numberOfInterestRateSwaps					5
Derivative, Fixed Interest Rate					0.369%
Fixed interest rate spread	1.15%
Senior unsecured term loan due November 1 2026
Debt Instrument [Line Items]
Unsecured Long-term Debt, Noncurrent	$ 650,000
Debt Instrument, Interest Rate at Period End	5.95%
Senior unsecured term loan due November 1 2026 | Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Unsecured Long-term Debt, Noncurrent		$ 60,900
Senior unsecured term loan due November 1 2025 | Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Unsecured Long-term Debt, Noncurrent		101,600		$ 101,600
Senior unsecured term loan due February 14 2028
Debt Instrument [Line Items]
Unsecured Long-term Debt, Noncurrent		$ 487,500
Guarantor Subsidiaries [Member] | Toll Brothers
Debt Instrument [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	100.00%

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Loans Payable, Senior Notes and Mortgage Company Loan Facility Credit Facility (Details Textual 2) - USD ($) $ in Thousands	6 Months Ended
	Apr. 30, 2023	Feb. 14, 2023	Oct. 31, 2022	Oct. 31, 2021
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 4,435,404		$ 4,094,096
Long-term line of credit	$ 2,564,197		$ 2,236,456
Oct 2021 Revolving Credit Facility Extension Agreement
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity				$ 1,905,000
Maximum Permissible Leverage Ratio	175.00%
Minimum Net Worth Required for Compliance	$ 4,040,000
Existing Leverage Ratio	0.32
Tangible Net Worth	$ 6,370,000
Ability to repurchase common stock	3,630,000
Ability to pay dividends	2,330,000
Long-term line of credit	0
Letters of Credit Outstanding, Amount	$ 116,000
Debt Instrument, Interest Rate at Period End	6.10%
Feb 2023 Revolving Credit Facility Extension Agreement
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		$ 1,905,000
Line of credit facility, additional borrowing capacity amount		$ 3,000,000

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Loans Payable, Senior Notes and Mortgage Company Loan Facility Loans Payable - Other (Details Textual 3)	Apr. 30, 2023
Loans Payable [Member]
Debt Instrument [Line Items]
Debt, Weighted Average Interest Rate	4.22%

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Loans Payable, Senior Notes and Mortgage Company Loan Facility Senior Notes Payable (Details Textual 4) $ in Thousands			6 Months Ended
	Apr. 17, 2023 USD ($)	Nov. 15, 2021 USD ($)	Apr. 30, 2023 USD ($) debtissuances	Apr. 30, 2022 USD ($)	Oct. 31, 2022 USD ($)
Senior Note Payable (Textual) [Abstract]
Number of issuances of senior debt | debtissuances			4
Repayments of Senior Debt			$ 400,000	$ 409,856
Senior notes			1,595,727		$ 1,995,271
Senior Notes [Member]
Senior Note Payable (Textual) [Abstract]
Debt Instrument, Face Amount			$ 1,600,000
5.875% Senior Notes due 2022
Senior Note Payable (Textual) [Abstract]
Repayments of Senior Debt		$ 409,900
Interest rate on notes			4.375%	5.875%
4.375% Senior Notes due 2023
Senior Note Payable (Textual) [Abstract]
Repayments of Senior Debt	$ 400,000

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Loans Payable, Senior Notes and Mortgage Company Loan Facility Mortgage Company Loan Facility (Details Textual 5) - USD ($) $ in Thousands	1 Months Ended
	Mar. 31, 2023	Apr. 30, 2022	Apr. 30, 2023	Oct. 31, 2022
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 4,435,404	$ 4,094,096
Warehouse Agreement Borrowings [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity			75,000
Line of credit facility, maximum borrowing capacity			$ 150,000
Debt Instrument, Interest Rate, Effective Percentage			6.80%
Bloomsberg Short-Term Bank Yield Index (BSBY) | Warehouse Agreement Borrowings [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.75%	1.75%
Bloomsberg Short-Term Bank Yield Index (BSBY) | Warehouse Agreement Borrowings [Member] | Interest Rate Floor
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.50%	0.50%

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Accrued Expenses (Details) - USD ($) $ in Thousands	Apr. 30, 2023	Jan. 31, 2023	Oct. 31, 2022	Apr. 30, 2022	Jan. 31, 2022	Oct. 31, 2021
Accrued expenses
Land, land development, and construction	$ 418,048		$ 334,975
Compensation and employee benefits	170,448		223,609
Escrow liability associated with our wholly owned captive title company	40,459		44,115
Self-insurance	245,687		251,576
Warranty	149,395	$ 156,895	164,409	$ 143,991	$ 143,043	$ 145,062
Lease Liabilities	$ 142,901		$ 139,664
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accrued expenses, Total		Accrued expenses, Total
Deferred income	$ 47,846		$ 50,973
Interest	32,212		31,988
Commitments to unconsolidated entities	31,744		26,905
Other	55,457		77,773
Accrued expenses, Total	$ 1,334,197		$ 1,345,987

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Accrued Expenses (Detail Textuals) - USD ($) $ in Thousands	45 Months Ended
	Jul. 31, 2020	Apr. 30, 2023	Jan. 31, 2023	Oct. 31, 2022	Apr. 30, 2022	Jan. 31, 2022	Oct. 31, 2021	Oct. 31, 2019
Loss Contingencies [Line Items]
Standard and Extended Product Warranty Accrual		$ 149,395	$ 156,895	$ 164,409	$ 143,991	$ 143,043	$ 145,062
Loss Contingency, Receivable		35,873		41,527
Water intrusion related [Member]
Loss Contingencies [Line Items]
Loss Contingency, Estimate of Possible Loss								$ 324,400
Standard and Extended Product Warranty Accrual		$ 44,200		$ 46,900
Other Assets [Member] | Water intrusion related [Member]
Loss Contingencies [Line Items]
Product Liability Contingency, Third Party Recovery	$ 152,600

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Accrued Expenses (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Changes in the warranty accrual
Balance, beginning of year	$ 156,895	$ 143,043	$ 164,409	$ 145,062
Additions - homes closed during the period	10,084	13,745	17,270	23,200
Charges incurred	(17,511)	(13,512)	(34,307)	(27,943)
Balance, end of year	149,395	143,991	149,395	143,991
Warranty change, homes closed in prior period, other [Member]
Changes in the warranty accrual
Increase in accruals for homes closed in prior years - net	$ (73)	$ 715	$ 2,023	$ 3,672

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Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022	Oct. 31, 2022
Income Taxes (Textual) [Abstract]
Income tax provision	$ 110,376	$ 75,222	$ 172,642	$ 124,134
Effective Income Tax Rate Reconciliation, Percent	25.60%	25.40%	25.20%	25.00%
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent			5.70%		5.60%
Unrecognized Tax Benefits	$ 5,800		$ 5,800

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Stock-Based Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense recognized	$ 2,641	$ 3,405	$ 17,025	$ 17,020
Income tax benefit recognized	$ 666	$ 855	$ 4,304	$ 4,268

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Stock-Based Benefit Plans (Details Textual) - USD ($) $ in Millions	Apr. 30, 2023	Oct. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized value of unvested stock-based compensation awards	$ 21.8	$ 15.5

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Stockholders' Equity (Details) - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Stock Repurchase Program [Abstract]
Number of shares purchased	1,443	2,205	1,630	5,219
Average price per share	$ 58.14	$ 48.30	$ 57.20	$ 56.01
Remaining authorization at April 30:	12,947	7,344	12,947	7,344

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Stockholders' Equity (Details Textual) - $ / shares shares in Millions				3 Months Ended		6 Months Ended
	Mar. 09, 2023	Mar. 08, 2022	Mar. 09, 2021	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022	May 17, 2022	Oct. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, dividends, declared and paid (in dollars per share)	$ 0.21	$ 0.20	$ 0.17	$ 0.21	$ 0.20	$ 0.41	$ 0.37
December 2019 Repurchase Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, number of shares authorized to be repurchased (in shares)									20
May 2022 Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, number of shares authorized to be repurchased (in shares)								20

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Stockholders' Equity (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			$ 37,618
Other Comprehensive Income (Loss), Net of Tax	$ (279)	$ 13,608	(3,743)	$ 18,310
Ending balance	33,875	19,419	33,875	19,419
Total AOCI ending balance	33,875	19,419	33,875	19,419
Defined Benefit Plan, Unfunded Plan [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	2,492	(5,685)	2,475	(6,024)
Losses reclassified from AOCI to net income (1)	24	451	47	903
Less: Tax benefit (2)	(6)	(113)	(12)	(226)
Net losses reclassified from AOCI to net income	18	338	35	677
Other Comprehensive Income (Loss), Net of Tax	18	338	35	677
Ending balance	2,510	(5,347)	2,510	(5,347)
Total AOCI ending balance	2,510	(5,347)	2,510	(5,347)
Interest Rate Swap [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	31,662	11,496	35,143	7,133
Other Comprehensive Income (Loss), Net of Tax	(297)	13,270	(3,778)	17,633
Ending balance	31,365	24,766	31,365	24,766
Gains (losses) on derivative instruments	588	17,616	(3,709)	23,363
Less: Tax (expense) benefit	(138)	(4,425)	948	(5,866)
Net gains (losses) on derivative instruments	450	13,191	(2,761)	17,497
(Gains) losses reclassified from AOCI to net income (3)	(1,000)	106	(1,362)	182
Less: Tax expense (benefit) (2)	253	(27)	345	(46)
Net (gains) losses reclassified from AOCI to net income	(747)	79	(1,017)	136
Total AOCI ending balance	$ 31,365	$ 24,766	$ 31,365	$ 24,766

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Earnings Per Share Information (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Earnings Per Share [Abstract]
Net income as reported	$ 320,216	$ 220,593	$ 511,746	$ 372,497
Basic weighted-average shares (in shares)	111,214	117,839	111,306	119,418
Common stock equivalents (in shares)	970	1,086	954	1,473
Diluted weighted-average shares (in shares)	112,184	118,925	112,260	120,891
Debt Instrument [Line Items]
Shares issued under stock incentive and employee stock purchase plans (in shares)	103	17	1,437	424
Restricted Stock Units RSU And Employee Stock Option Member [Member]
Debt Instrument [Line Items]
Weighted-average number of antidilutive options and restricted stock units (in shares)	168	214	334	209

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Fair Value Disclosures (Level 4 FV of Fin Instr) (Details) - Fair Value, Recurring [Member] - Level 2 [Member] - USD ($) $ in Thousands	Apr. 30, 2023	Oct. 31, 2022
Forward Contracts [Member] | Residential Mortgage [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Derivative Asset	$ 1,396	$ 9,184
Interest Rate Swap [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Derivative Asset	33,214	45,010
Assets Held-for-sale [Member] | Residential Mortgage [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Loans Held-for-sale, Fair Value Disclosure	112,603	185,150
Interest Rate Lock Commitments [Member] | Forward Contracts [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Derivative Asset	2,884	17,734
Interest Rate Lock Commitments [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Derivative Liability	$ (2,884)	$ (17,734)

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Fair Value Disclosures (Level 4 loan UPB vs FV) (Details 1) - USD ($) $ in Thousands	Apr. 30, 2023	Oct. 31, 2022
Aggregate unpaid principal and fair value of mortgage loans held for sale
Mortgage Loans on Real Estate, Commercial and Consumer, Net	$ 112,603	$ 185,150
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Assets Held-for-sale [Member] | Residential Mortgage [Member]
Aggregate unpaid principal and fair value of mortgage loans held for sale
Aggregate unpaid principal balance	115,286	193,746
Mortgage Loans on Real Estate, Commercial and Consumer, Net	112,603	185,150
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables	$ (2,683)	$ (8,596)

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Fair Value Disclosures (Level 4 debt fv) (Details 2) - USD ($) $ in Thousands	Apr. 30, 2023	Oct. 31, 2022
Book value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	$ 2,842,358	$ 3,335,906
Book value [Member] | Fair Value, Inputs, Level 2 [Member] | Loans Payable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	1,139,869	1,187,043
Book value [Member] | Fair Value, Inputs, Level 2 [Member] | Warehouse Agreement Borrowings [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	102,489	148,863
Book value [Member] | Fair Value, Inputs, Level 1 [Member] | Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	1,600,000	2,000,000
Estimate fair value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	2,763,240	3,152,011
Estimate fair value [Member] | Fair Value, Inputs, Level 2 [Member] | Loans Payable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	1,123,766	1,180,893
Estimate fair value [Member] | Fair Value, Inputs, Level 2 [Member] | Warehouse Agreement Borrowings [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	102,489	148,863
Estimate fair value [Member] | Fair Value, Inputs, Level 1 [Member] | Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	$ 1,536,985	$ 1,822,255

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Fair Value Disclosures (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Fair value inputs, assets, quantitative information [Line Items]
Inventory Write-down	$ 11,069	$ 2,192	$ 19,073	$ 4,425
Land Owned for Future Communities [Member]
Fair value inputs, assets, quantitative information [Line Items]
Inventory Write-down	$ 325	$ 0	$ 325	$ 1,440

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Other Income - Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Other Nonoperating Income By Component [Line Items]
Income (loss) from ancillary businesses	$ 2,858	$ 12,334	$ (91)	$ 14,294
Management fee income earned by home building operations	2,506,979	2,277,541	4,287,148	4,068,622
Other	6,663	(2,147)	13,441	(1,733)
Total other income - net	10,180	11,224	43,095	14,936
Revenues and expenses of non-core ancillary businesses
Revenues	33,275	31,890	61,181	59,586
Expenses	30,417	19,556	61,272	45,292
Other Income
Other Nonoperating Income By Component [Line Items]
Gain (Loss) Related to Litigation Settlement	0	0	27,683	0
Management Fee [Member]
Other Nonoperating Income By Component [Line Items]
Management fee income earned by home building operations	$ 659	$ 1,037	$ 2,062	$ 2,375

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Other Income - Net (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Schedule of Equity Method Investments [Line Items]
Income from Ancillary Businesses, net	$ 2,858	$ 12,334	$ (91)	$ 14,294
Security Monitoring Business
Schedule of Equity Method Investments [Line Items]
Gain (Loss) on Disposition of Other Assets		9,000		9,000
Apartment living [Member]
Schedule of Equity Method Investments [Line Items]
Income from Ancillary Businesses, net	$ 6,400	$ 4,800	$ 12,600	$ 9,600

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Commitments and Contingencies (Details) - USD ($) $ in Thousands	Apr. 30, 2023	Oct. 31, 2022
Company's land purchase commitments
Purchase obligation	$ 4,065,223	$ 4,321,717
Land Purchase Commitment To Unrelated Party [Member]
Company's land purchase commitments
Purchase obligation	4,031,720	4,279,660
Land Purchase Commitment To JV [Member]
Company's land purchase commitments
Purchase obligation	33,503	42,057
Land Parcel Purchase Commitment [Member]
Company's land purchase commitments
Deposits against aggregate purchase commitments	450,800	463,452
Additional cash required to acquire land	3,614,423	3,858,265
Amount of Additional Cash Required to Acquire Land Included in Accrued Expenses	$ 119,141	$ 34,994

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Commitments and Contingencies (Details Textual 1) $ in Thousands	Apr. 30, 2023 USD ($) home_sites	Oct. 31, 2022 USD ($)
Long-term Purchase Commitment [Line Items]
Purchase obligation	$ 4,065,223	$ 4,321,717
Minimum [Member] | Co-venturer [Member]
Long-term Purchase Commitment [Line Items]
Equity Method Investment, Ownership Percentage	5.00%
Land for Apartment Development Purchase Commitment [Member]
Long-term Purchase Commitment [Line Items]
Purchase obligation	$ 330,800
Deposits against aggregate purchase commitments	$ 13,200
Land Development Joint Ventures [Member] | Commitment To Acquire Home Sites [Member]
Long-term Purchase Commitment [Line Items]
Unrecorded Unconditional Purchase Obligation, Maximum Quantity | home_sites	8,400

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Commitments and Contingencies (Details Textual 2) $ in Thousands	Apr. 30, 2023 USD ($) luxury_homes
Backlog Information [Abstract]
Number of homes to be delivered (in ones) | luxury_homes	7,574
Aggregate sales value of outstanding homes to be delivered	$ 8,380,000
Oct 2021 Revolving Credit Facility Extension Agreement
Loss Contingencies [Line Items]
Outstanding letter of credit	116,000
Surety Bond Construction Improvements [Member]
Loss Contingencies [Line Items]
Outstanding Surety Bonds Amount	836,600
Amount of work remains on improvements in the Company's various communities	344,200
Surety Bond Other Obligations [Member]
Loss Contingencies [Line Items]
Additional outstanding surety bonds	303,900
Financial Guarantee
Loss Contingencies [Line Items]
Outstanding Surety Bonds Amount	$ 25,700

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Commitments and Contingencies (Details 1) - Loan Origination Commitments [Member] - USD ($) $ in Thousands	Apr. 30, 2023	Oct. 31, 2022
Company's mortgage commitments
Unused Commitments to Extend Credit	$ 2,482,691	$ 3,098,694
Investor commitments to purchase	558,162	856,297
Interest Rate Lock Commitments [Member]
Company's mortgage commitments
Unused Commitments to Extend Credit	452,156	669,631
Investor commitments to purchase	452,156	669,631
Non Interest Rate Lock Commitments [Member]
Company's mortgage commitments
Unused Commitments to Extend Credit	2,030,535	2,429,063
Mortgage Receivable [Member]
Company's mortgage commitments
Investor commitments to purchase	$ 106,006	$ 186,666

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Information on Segments (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Segment Reporting Information [Line Items]
Inventory Write-down	$ 11,069	$ 2,192	$ 19,073	$ 4,425
Traditional Homebuilding [Member]
Segment Reporting Information [Line Items]
Inventory Write-down	11,069	2,192	19,073	4,425
North [Member] | Traditional Homebuilding [Member]
Segment Reporting Information [Line Items]
Inventory Write-down	290	443	431	769
Mid-Atlantic [Member] | Traditional Homebuilding [Member]
Segment Reporting Information [Line Items]
Inventory Write-down	5,080	706	6,320	1,145
Pacific [Member] | Traditional Homebuilding [Member]
Segment Reporting Information [Line Items]
Inventory Write-down	182	235	6,223	1,458
Land and Land Improvements
Segment Reporting Information [Line Items]
Inventory Write-down	4,700	$ 5,200	17,700	$ 5,200
Land and Land Improvements | Corporate and other [Member]
Segment Reporting Information [Line Items]
Inventory Write-down	2,500		2,500
Land and Land Improvements | North [Member]
Segment Reporting Information [Line Items]
Inventory Write-down			2,700
Land and Land Improvements | Mid-Atlantic [Member]
Segment Reporting Information [Line Items]
Inventory Write-down			10,300
Land and Land Improvements | Pacific [Member]
Segment Reporting Information [Line Items]
Inventory Write-down	$ 2,200		$ 2,200

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Information on Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022	Oct. 31, 2022
Revenues
Revenues	$ 2,506,979	$ 2,277,541	$ 4,287,148	$ 4,068,622
Income (loss) before income taxes
Income before income taxes	430,592	295,815	684,388	496,631
Total assets
Total assets	11,989,476		11,989,476		$ 12,288,714
Inventory Write-down	11,069	2,192	19,073	4,425
Corporate and other [Member]
Revenues
Revenues	(260)	(2,032)	(610)	(3,459)
Income (loss) before income taxes
Income before income taxes	(64,945)	(63,418)	(89,433)	(98,360)
Total assets
Total assets	2,057,764		2,057,764		2,677,440
Traditional Homebuilding [Member]
Revenues
Revenues	2,490,358	2,188,561	4,240,130	3,877,340
Income (loss) before income taxes
Income before income taxes	495,537	359,233	773,821	594,991
Total assets
Total assets	9,931,712		9,931,712		9,611,274
Inventory Write-down	11,069	2,192	19,073	4,425
North [Member] | Traditional Homebuilding [Member]
Revenues
Revenues	381,316	398,907	704,110	754,041
Income (loss) before income taxes
Income before income taxes	50,922	50,717	87,556	96,384
Total assets
Total assets	1,394,986		1,394,986		1,464,995
Inventory Write-down	290	443	431	769
Mid-Atlantic [Member] | Traditional Homebuilding [Member]
Revenues
Revenues	309,587	268,250	498,704	511,127
Income (loss) before income taxes
Income before income taxes	64,428	43,837	87,351	77,285
Total assets
Total assets	1,143,351		1,143,351		1,049,043
Inventory Write-down	5,080	706	6,320	1,145
South [Member] | Traditional Homebuilding [Member]
Revenues
Revenues	519,351	326,351	912,232	569,870
Income (loss) before income taxes
Income before income taxes	88,721	42,974	141,167	65,551
Total assets
Total assets	2,371,522		2,371,522		2,137,568
Inventory Write-down	30	466	481	609
Mountain [Member] | Traditional Homebuilding [Member]
Revenues
Revenues	674,234	653,558	1,154,446	1,115,858
Income (loss) before income taxes
Income before income taxes	133,942	104,962	221,246	175,973
Total assets
Total assets	2,781,482		2,781,482		2,785,603
Inventory Write-down	5,487	342	5,618	444
Pacific [Member] | Traditional Homebuilding [Member]
Revenues
Revenues	605,870	541,495	970,638	926,444
Income (loss) before income taxes
Income before income taxes	157,524	116,743	236,501	179,798
Total assets
Total assets	2,240,371		2,240,371		$ 2,174,065
Inventory Write-down	182	235	6,223	1,458
Home Building [Member]
Revenues
Revenues	2,490,098	2,186,529	4,239,520	3,873,881
Land and Land Improvements
Total assets
Inventory Write-down	4,700	$ 5,200	17,700	$ 5,200
Land and Land Improvements | Corporate and other [Member]
Total assets
Inventory Write-down	2,500		2,500
Land and Land Improvements | North [Member]
Total assets
Inventory Write-down			2,700
Land and Land Improvements | Mid-Atlantic [Member]
Total assets
Inventory Write-down			10,300
Land and Land Improvements | Pacific [Member]
Total assets
Inventory Write-down	$ 2,200		$ 2,200

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Supplemental Disclosure to Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Oct. 31, 2022	Oct. 31, 2021
Cash flow information:
Income tax paid – net	$ 291,196	$ 131,658
Noncash activity:
Cost of inventory acquired through seller financing, municipal bonds, or included in accrued expenses - net	110,759	180,576
Accrued treasury share purchases	0	8,003
Transfer of other assets to investment in unconsolidated entities - net	2,765	55,202
Transfer of other assets to property, construction and office equipment - net	12,268	0
Unrealized (loss) gain on derivatives	(11,796)	23,731
Cash, cash equivalents, and restricted cash
Cash and cash equivalents	761,945	535,038	$ 1,346,754
Restricted cash included in receivables, prepaid expenses, and other assets	47,716	52,863
Total cash, cash equivalents, and restricted cash shown on the Condensed Consolidated Statements of Cash Flows	$ 809,661	$ 587,901	$ 1,398,550	$ 1,684,412