11 unchanged sentences
Changes in Internal Control Over Financial Reporting
−Removed: We are in the process of a complex implementation of a new ERP system that affects many of our financial processes.
−Removed: This project is expected to improve the efficiency and effectiveness of certain financial and business transaction processes, as well as the underlying systems environment.
−Removed: The new ERP system will be a significant component of our internal control over financial reporting.
−Removed: 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 October 31, 2023, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
−Removed: For a discussion of risks related to the implementation of our new ERP system, see “Risk Factors - Risks Related to Our Business and Industry - We are implementing a new enterprise resource planning system, and challenges with the implementation of the system may impact our business and operations.”
+Added: 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 October 31, 2024, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
OTHER INFORMATION
1 unchanged sentence
During the period covered by this Annual Report on Form 10-K, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K .
+Added: DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
+Added: Not applicable.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
5 unchanged sentences
Connor 60 Senior Vice President and Chief Financial Officer
−Removed: joined us in 1990 as assistant to the Chief Executive Officer with responsibility for land acquisitions.
+Added: joined us in 1990, specializing in land acquisitions and project finance.
He has been an officer since 1994, holding the position of Senior Vice President from January 2002 until November 2005, the position of Regional President from November 2005 until November 2009, and the position of Executive Vice President from November 2009 until June 2010, when he was promoted to Chief Executive Officer.
On November 1, 2018, he was appointed to the position of Chairman of the Board and Chief Executive Officer.
−Removed: Yearley was elected a Director in June 2010.
+Added: Yearley was first elected as a Director in June 2010.
Robert Parahus joined us in 1986 and served in various positions with us, including Regional President from 2006 through October 31, 2019.
During this time, he oversaw the Company’s home building operations in New Jersey, New York, Connecticut, Massachusetts, and Florida, and had oversight responsibility for Toll Integrated Systems, the Company’s building component manufacturing operations.
−Removed: He was appointed to the position of Executive Vice President and Co-Chief Operating Officer effective November 1, 2019, with responsibility for the Company’s eastern region.
+Added: He was appointed to the position of Executive Vice President and Co-Chief Operating Officer effective November 1, 2019, with responsibility for the Company’s North, Mid-Atlantic, and South regions.
Effective November 1, 2021, Mr.
10 unchanged sentences
Connor is a director of Univest Financial Corporation, a publicly traded banking and financial services provider serving customers primarily in Pennsylvania and New Jersey.
−Removed: The other information required by this item will be included in the “Election of Directors” and “Corporate Governance” sections of our Proxy Statement for the 2024 Annual Meeting of Stockholders (the “2024 Proxy Statement”).
Code of Ethics
1 unchanged sentence
The Code of Ethics is available on our Internet website at www.tollbrothers.com under “Investor Relations – Corporate Governance.” If we were to amend or waive any provision of our Code of Ethics, we intend to satisfy our disclosure obligations with respect to any such waiver or amendment by posting such information on our Internet website set forth above rather than by filing a Form 8-K.
+Added: Insider Trading Policy
+Added: The Company has an insider trading policy governing the purchase, sale and other dispositions of the Company’s securities that applies to all Company personnel, including directors, officers, employees, and other covered persons, as well as the Company itself.
+Added: The Company also follows procedures for the repurchase of its securities.
+Added: The Company believes that its insider trading policy and repurchase procedures are reasonably designed to promote compliance with insider trading laws, rules and regulations, and listing standards applicable to the Company.
+Added: A copy of the Company’s insider trading policy is filed as Exhibit 19.1 to this Form 10-K.
Indemnification of Directors and Officers
1 unchanged sentence
We have also entered into individual indemnification agreements with each of our directors.
+Added: The remaining information required by this Item 10 will be included in our Proxy Statement for the 2025 Annual Meeting of Stockholders (the “2025 Proxy Statement”), and is incorporated herein by reference.
EXECUTIVE COMPENSATION
73 unchanged sentences
4.39 Twenty-seventh Supplemental Indenture dated as of July 29, 2022, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporated by reference to Exhibit 4.1 of the Registrant’s Form 10-Q for the quarter ended July 31, 2022.
−Removed: 4.40 Twenty-eighth Supplemental Indenture dated as of October 31, 2022, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporate by reference to Exhibit 4.43 of the Registrants’s Form 10-K for the year ended October 31, 2022.
−Removed: 4.41 Twenty-ninth Supplemental Indenture dated as of January 31, 2023, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporate by reference to Exhibit 4.1 of the Registrants’s Form 10-Q for the quarter ended January 31, 2023.
−Removed: 4.42 Thirtieth Supplemental Indenture dated as of July 31, 2023, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporate by reference to Exhibit 4.1 of the Registrants’s Form 10-Q for the quarter ended July 31, 2023.
+Added: 4.40 Twenty-eighth Supplemental Indenture dated as of October 31, 2022, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporate d by reference to Exhibit 4.43 of the Registrants’s Form 10-K for the year ended October 31, 2022.
+Added: 4.41 Twenty-ninth Supplemental Indenture dated as of January 31, 2023, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporate d by reference to Exhibit 4.1 of the Registrants’s Form 10-Q for the quarter ended January 31, 2023.
+Added: 4.42 Thirtieth Supplemental Indenture dated as of July 31, 2023, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee, is hereby incorporate d by reference to Exhibit 4.1 of the Registrants’s Form 10-Q for the quarter ended July 31, 2023.
Exhibit Number Description
−Removed: 4.43 Thirty-first Supplemental Indenture dated as of October 31, 2023, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee.**
+Added: 4.43 Thirty-first Supplemental Indenture dated as of October 31, 2023, to the Indenture dated as of February 7, 2012 by and among the parties listed on Schedule A thereto, and The Bank of New York Mellon, as successor Trustee , is hereby incorporate d by re ference to Exhib it 4.43 of the Registrant ’ s Form 10-K for the year ended October 31, 2023 .
+Added: 4.44 Thirty-Second Supplemental Indenture dated as of April 30, 2024 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 truste e , is hereby incorporate d by re ference to Exhi bit 4.1 of the Registra nt ’ s Form 10-Q for the quarter en ded July 31, Apri l 30, 2024.
+Added: 4.45 Thirty-Third Supplemental Indenture dated as of July 31, 2024 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 truste e, is hereby incorporate d by re ference to Exhi bit 4.1 of the Regi strant ’ s Form 10-Q for the quarter ended July 31, 2024.
+Added: 4.46 Thirty-Fourth Supplemental Indenture dated as of October 31, 2024 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.**
4.47 Description of Certain of Registrant’s Securities is hereby incorporated by reference to Exhibit 4.44 of the Registrant’s Form 10-K for the year ended October 31, 2021.
16 unchanged sentences
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
+Added: Exhibit Number Description
10.8 Term Loan Extension Agreements, effective as of October 31, 2020, with respect to the Term Loan Credit Agreement dated as of February 3, 2014 (as amended by Amendment No.
10 unchanged sentences
Employee Stock Purchase Plan (2017) is hereby incorporated by reference to Annex A to the Registrant’s Definitive Proxy Statement on Schedule 14A for its 2017 Annual Meeting of Stockholders filed with the SEC on January 31, 2017.
−Removed: Exhibit Number Description
10.11* Amendment No.
5 unchanged sentences
10.13* Toll Brothers, Inc.
−Removed: Amended and Restated Stock Incentive Plan for Employees (2007) (amended and restated as of September 17, 2008, is hereby incorporated by reference to Exhibit 4.1 of the Registrant’s Amendment No.
−Removed: 1 to its Registration Statement on Form S-8 (No.
−Removed: 333-143367) filed with the Securities and Exchange Commission on October 29, 2008.
−Removed: 10.14* Form of Non-Qualified Stock Option Grant pursuant to the Toll Brothers, Inc.
−Removed: Stock Incentive Plan for Employees (2007) is hereby incorporated by reference to Exhibit 10.1 of the Registrant’s Form 8-K filed with the Securities and Exchange Commission on December 19, 2007.
−Removed: 10.15* Form of Addendum to Non-Qualified Stock Option Grant pursuant to the Toll Brothers, Inc.
−Removed: Stock Incentive Plan for Employees (2007) is hereby incorporated by reference to Exhibit 10.3 of the Registrant’s Form 10-Q for the quarter ended July 31, 2007.
−Removed: 10.16* Toll Brothers, Inc.
Stock Incentive Plan for Employees (2014) is hereby incorporated by reference to Annex A to the Registrant’s definitive proxy statement on Schedule 14A for its 2014 Annual Meeting of Stockholders filed with the SEC on February 3, 2014.
13 unchanged sentences
10.20* Form of Non-Qualified Stock Option Grant (Non-Executive Directors), is hereby incorporated by reference to Exhibit 10.26 of the Registrant’s Form 10-K for the year ended October 31, 2016.
+Added: 10.21* Form of Restricted Stock Unit Agreement (Non-Executive Directors) pursuant to the Toll Brothers, Inc.
+Added: 2019 Omnibus Incentive Plan**
10.22* Toll Brothers, Inc.
2019 Omnibus Incentive Plan, is hereby incorporated by reference to Exhibit 10.2 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 14, 2019.
+Added: Exhibit Number Description
10.23* Form of Non-Qualified Stock Option Grant pursuant to the Toll Brothers, Inc.
2 unchanged sentences
2019 Omnibus Incentive Plan, is hereby incorporated by reference to Exhibit 10.29 of the Registrant’s Form 10-K for the year ended October 31, 2019.
−Removed: Exhibit Number Description
10.25* Form of Restricted Stock Unit Agreement (Performance Based) pursuant to the Toll Brothers, Inc.
1 unchanged sentence
10.26* Toll Brothers, Inc.
−Removed: Supplemental Executive Retirement Plan, as amended effective as of
−Removed: October 29, 2019, is hereby incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 10-Q filed with the Securities and Exchange Commission on October 30, 2019.
+Added: Supplemental Executive Retirement Plan, as amended effective as of October 29, 2019, is hereby incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 10-Q filed with the Securities and Exchange Commission on October 30, 2019.
10.27* Toll Bros., Inc.
7 unchanged sentences
10.31* Toll Bros., Inc.
−Removed: Nonqualified Deferred Compensation Plan, amended and restated effective as of
−Removed: December 31, 2014, is incorporated by reference to Exhibit 10.1 of the Registrant’s Form 10-Q for the quarter ended January 31, 2015.
+Added: Nonqualified Deferred Compensation Plan, amended and restated effective as of December 31, 2014, is incorporated by reference to Exhibit 10.1 of the Registrant’s Form 10-Q for the quarter ended January 31, 2015.
10.32* Toll Brothers, Inc.
1 unchanged sentence
10.33* Form of Indemnification Agreement between the Registrant and the members of its Board of Directors, 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 March 17, 2009.
+Added: 19.1** Insider Trading Policy.
21** Subsidiaries of the Registrant.
10 unchanged sentences
97* Compensation Clawback Policy .
+Added: Exhibit Number Description
101 The following financial statements from Toll Brothers, Inc.
2 unchanged sentences
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.
−Removed: Exhibit Number Description
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
27 unchanged sentences
Kan Director December 20, 2024
−Removed: Marbach Director December 20, 2023
McLean Director December 20, 2024
1 unchanged sentence
Pritchett Director December 20, 2024
+Added: /s/ Judith A.
+Added: Reinsdorf Director December 20, 2024
Signature Title Date
+Added: /s/ Katherine A.
+Added: Sandstrom Director December 20, 2024
Shapiro Director December 20, 2024
58 unchanged sentences
Critical Audit Matters
−Removed: The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:
+Added: The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit and risk committee and that:
(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.
5 unchanged sentences
The Company’s accrual for self-insurance was $242.3 million as of October 31, 2024.
−Removed: The Company records expenses and accrues liabilities based on the estimated costs required to cover its self-insured liability under its insurance policies and the estimated costs of potential claims and claim adjustment expenses that are above coverage limits or that are not covered by insurance policies.
+Added: The Company records expenses and accrues liabilities based on the estimated costs required to cover its self-insured liability and the estimated costs of potential claims and claim adjustment expenses that are above coverage limits or that are not covered by insurance policies.
These estimated costs are based on an analysis of historical claims and industry data.
23 unchanged sentences
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over management’s inventory impairment review process.
−Removed: For example, we tested controls over management’s review of the significant assumptions and data inputs utilized in the calculation of future undiscounted and discounted cash flows, if applicable.
−Removed: To test the Company’s estimated future cash flows used to test for the recoverability of a community and, if applicable, the measurement of an impairment loss, we performed audit procedures that included, among others, testing the significant assumptions discussed above and the underlying data used by the Company in its impairment analyses, evaluating the methodologies applied by management, and recalculating the total undiscounted and discounted cash flows, if applicable, in each analysis.
+Added: For example, we tested controls over management’s review of the significant assumptions and data inputs utilized in the calculation of future undiscounted cash flows.
+Added: To test the Company’s estimated future cash flows used to test for the recoverability of a community and, if applicable, the measurement of an impairment loss, we performed audit procedures that included, among others, testing the significant assumptions discussed above and the underlying data used by the Company in its impairment analyses, evaluating the methodologies applied by management, and recalculating the total undiscounted cash flows in each analysis.
In certain cases, we involved our internal real estate valuation specialists to assist in performing these procedures.
29 unchanged sentences
Preferred stock, none issued — —
−Removed: Common stock, 112,937 and 127,937 shares issued at October 31, 2023 and October 31, 2022, respectively 1,129 1,279
+Added: Common stock, 112,937 shares issued at October 31, 2024 and October 31, 2023 1,129 1,129
Additional paid-in capital 694,713 698,548
22 unchanged sentences
Income from operations 2,040,187 1,724,755 1,508,626
−Removed: Income from unconsolidated entities 50,098 23,723 74,035
+Added: (Loss) income from unconsolidated entities ( 23,843 ) 50,098 23,723
Other income – net 69,296 67,518 171,377
−Removed: Expenses related to early retirement of debt — — ( 35,211 )
Income before income taxes 2,085,640 1,842,371 1,703,726
1 unchanged sentence
Net income $ 1,571,195 $ 1,372,071 $ 1,286,500
−Removed: Other comprehensive income – net of tax 3,292 36,509 8,307
+Added: Other comprehensive (loss) income – net of tax ( 9,633 ) 3,292 36,509
Total comprehensive income $ 1,561,562 $ 1,375,363 $ 1,323,009
12 unchanged sentences
Balance, 10/31/2021 127,937 1,279 714,453 4,969,839 ( 391,656 ) 1,109 5,295,024 45,431 5,340,455
−Removed: Cumulative effect adjustment upon adoption of ASU 2016-13, net of tax ( 595 ) ( 595 ) ( 595 )
Net income 1,286,500 1,286,500 1,286,500
Purchase of treasury stock ( 542,739 ) ( 542,739 ) ( 542,739 )
−Removed: Exercise of stock options, and stock based compensation issuances, and employee stock purchase plan issuances ( 26,006 ) 36,489 10,483 10,483
+Added: Exercise of stock options, and stock based compensation issuances, and employee stock plan issuances ( 18,762 ) 18,068 ( 694 ) ( 694 )
Stock-based compensation 21,095 21,095 21,095
−Removed: Cancellation of treasury stock
−Removed: ( 25,000 ) ( 250 ) ( 950,315 ) 950,565 — —
Dividends declared
1 unchanged sentence
Other comprehensive income 36,509 36,509 36,509
−Removed: Loss attributable to non-controlling interest — ( 6,770 ) ( 6,770 )
+Added: Income attributable to non-controlling interest — 64 64
Capital distributions, net — ( 29,743 ) ( 29,743 )
2 unchanged sentences
Purchase of treasury stock ( 565,950 ) ( 565,950 ) ( 565,950 )
−Removed: Exercise of stock options, and stock based compensation issuances, and employee stock purchase plan issuances ( 18,762 ) 18,068 ( 694 ) ( 694 )
+Added: Exercise of stock options, and stock based compensation issuances, and employee stock plan issuances ( 43,043 ) 91,308 48,265 48,265
Stock-based compensation 24,805 24,805 24,805
+Added: Cancellation of treasury stock ( 15,000 ) ( 150 ) ( 771,669 ) 771,819 — —
Dividends declared
1 unchanged sentence
Other comprehensive income 3,292 3,292 3,292
−Removed: Income attributable to non-controlling interest — 64 64
−Removed: Capital distributions, net — ( 29,743 ) ( 29,743 )
+Added: Loss attributable to non-controlling interest
+Added: — ( 666 ) ( 666 )
+Added: Capital contributions, net — 960 960
Balance, 10/31/2023 112,937 1,129 698,548 6,675,719 ( 619,150 ) 40,910 6,797,156 16,046 6,813,202
1 unchanged sentence
Purchase of treasury stock ( 627,920 ) ( 627,920 ) ( 627,920 )
−Removed: Exercise of stock options, and stock based compensation issuances, and employee stock purchase plan issuances ( 43,043 ) 91,308 48,265 48,265
+Added: Exercise of stock options, and stock based compensation issuances, and employee stock plan issuances ( 33,393 ) 37,523 4,130 4,130
Stock-based compensation 29,558 29,558 29,558
−Removed: Cancellation of treasury stock
−Removed: ( 15,000 ) ( 150 ) ( 771,669 ) 771,819 — —
Dividends declared ( 93,558 ) ( 93,558 ) ( 93,558 )
−Removed: Other comprehensive income 3,292 3,292 3,292
+Added: Other comprehensive loss ( 9,633 ) ( 9,633 ) ( 9,633 )
Loss attributable to non-controlling interest — ( 1,093 ) ( 1,093 )
11 unchanged sentences
Stock-based compensation 29,558 24,805 21,095
−Removed: Income from unconsolidated entities ( 50,098 ) ( 23,723 ) ( 74,035 )
+Added: Loss (income) from unconsolidated entities 23,843 ( 50,098 ) ( 23,723 )
Distributions of earnings from unconsolidated entities 39,276 88,393 32,316
2 unchanged sentences
(Gain) loss on sale of assets ( 5,042 ) ( 416 ) 576
−Removed: Other 3,181 3,781 ( 406 )
−Removed: Expenses related to early retirement of debt — — 35,211
+Added: Other - net ( 1,544 ) 3,181 3,781
Changes in operating assets and liabilities:
12 unchanged sentences
Proceeds from the sale of assets, including ownership interests in unconsolidated entities 1,139 26,049 28,309
−Removed: Other — 196 652
+Added: Other – net ( 3,242 ) — 196
Net cash used in investing activities ( 167,618 ) ( 150,601 ) ( 153,176 )
5 unchanged sentences
Proceeds (payments) related to stock-based benefit plans – net 4,131 48,269 ( 690 )
−Removed: Purchase of treasury stock ( 561,595 ) ( 542,739 ) ( 378,256 )
+Added: Purchase of treasury stock and excise tax payment ( 627,061 ) ( 561,595 ) ( 542,739 )
Dividends paid ( 93,401 ) ( 91,082 ) ( 88,901 )
1 unchanged sentence
Net cash used in financing activities ( 816,455 ) ( 1,170,038 ) ( 1,119,502 )
−Removed: Net (decrease) increase in cash, cash equivalents, and restricted cash ( 54,209 ) ( 285,862 ) 287,808
−Removed: Cash, cash equivalents, and restricted cash, beginning of period 1,398,550 1,684,412 1,396,604
−Removed: Cash, cash equivalents, and restricted cash, end of period $ 1,344,341 $ 1,398,550 $ 1,684,412
+Added: Net increase (decrease) in cash, cash equivalents, and restricted cash 26,094 ( 54,209 ) ( 285,862 )
+Added: Cash, cash equivalents, and restricted cash, beginning of year 1,344,341 1,398,550 1,684,412
+Added: Cash, cash equivalents, and restricted cash, end of year $ 1,370,435 $ 1,344,341 $ 1,398,550
See accompanying notes.
5 unchanged sentences
All significant intercompany accounts and transactions have been eliminated.
−Removed: 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.
References herein to fiscal year refer to our fiscal years ended or ending October 31.
5 unchanged sentences
Cash and Cash Equivalents
−Removed: Liquid investments or investments with original maturities of three months or less are classified as cash equivalents.
+Added: Investments with original maturities of three months or less are classified as cash equivalents.
Our cash balances exceed federally insurable limits.
9 unchanged sentences
Interest incurred on home building indebtedness in excess of qualified inventory, as defined in ASC 835-20, is charged to the Consolidated Statements of Operations and Comprehensive Income in the period incurred.
−Removed: During fiscal 2023, 2022 and 2021, the Company’s qualified inventory exceeded its indebtedness and substantially all interest incurred was capitalized to inventory.
+Added: During fiscal 2024, 2023 and 2022, the Company’s qualified inventory exceeded its indebtedness and substantially all interest incurred, excluding interest related to our mortgage company subsidiary’s operations, was capitalized to inventory.
See Note 3, “Inventory”.
8 unchanged sentences
The impairment is charged to home sales cost of revenues in the period in which the impairment is determined.
−Removed: In estimating the future undiscounted cash flow of a community, we use various estimates such as (i) the expected sales pace in a community, based upon general economic conditions that will have a short-term or long-term impact on the market in which the community
−Removed: is located and on competition within the market, including the number of home sites available and pricing and incentives being offered in other communities owned by us or by other builders;
+Added: In estimating the future undiscounted cash flow of a community, we use various estimates such as (i) the expected sales pace in a community, based upon general economic conditions that will have a short-term or long-term impact on the market in which the community is located and on competition within the market, including the number of home sites available and pricing and incentives being
+Added: offered in other communities owned by us or by other builders;
(ii) the expected sales prices and sales incentives to be offered in a community;
17 unchanged sentences
We have a significant number of land purchase contracts and financial interests in other entities which we evaluate in accordance with ASC 810.
−Removed: We analyze our land purchase contracts and the entities in which we have an investment to determine whether the land sellers and entities are VIEs and, if so, whether we are the primary beneficiary (“PB”).
+Added: We analyze our land purchase contracts and the entities in which we have an investment to determine whether the land sellers and entities are VIEs and, if so, whether we are the primary beneficiary.
We examine specific criteria and use our judgment when determining if we are the primary beneficiary of a VIE.
17 unchanged sentences
Investments in Unconsolidated Entities
+Added: We have investments in a number of unconsolidated entities, including joint ventures, with independent third parties.
+Added: 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.
+Added: Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of these entities.
+Added: Additionally, we track cumulative earnings and distributions from our investments in unconsolidated entities.
+Added: For cash flow classification, to the extent distributions do not exceed cumulative earnings, we designate such distributions as return on capital and reflected in the operating section of our Consolidated Statements of Cash Flows.
+Added: Distributions in excess of cumulative earnings are treated as return of capital and reflected in the investing section of our Consolidated Statements of Cash Flows.
In accordance with ASC 323, “Investments—Equity Method and Joint Ventures,” we review each of our investments on a quarterly basis for indicators of impairment.
−Removed: A series of operating losses of an investee, the inability to recover our invested capital, or other factors may indicate that a loss in value of our investment in the unconsolidated entity has occurred.
+Added: A series of net operating losses of an investee, the inability to recover our invested capital, or other factors may indicate that a loss in value of our investment in the unconsolidated entity has occurred.
If a loss exists, we further review the investment to determine if the loss is other than temporary, in which case we write down the investment to its estimated fair value.
−Removed: The evaluation of our investment in unconsolidated entities entails a detailed cash flow analysis using many estimates, including, but not limited to, expected sales pace, expected sales prices, expected incentives, costs incurred and anticipated, sufficiency of financing and capital, competition, market conditions, and anticipated cash receipts, in order to determine projected future distributions from the unconsolidated entity.
+Added: The evaluation of our investment in unconsolidated entities, other than those that own rental properties, entails a detailed cash flow analysis using many estimates, including, but not limited to, expected sales pace, expected sales prices, expected incentives, costs incurred and anticipated, sufficiency of financing and capital, competition, market conditions, and anticipated cash receipts, in order to determine projected future distributions from the unconsolidated entity.
In addition, for investments in rental properties, we review rental trends, expected future expenses, and expected cash flows to determine estimated fair values of the properties.
7 unchanged sentences
instead, our cost basis in those home sites is reduced by our share of the earnings realized by the joint venture from sales of those home sites to us.
−Removed: We are also a party to several other joint ventures.
−Removed: We recognize our proportionate share of the earnings and losses of our unconsolidated entities.
Fair Value Disclosures
19 unchanged sentences
When treasury stock is cancelled, any excess purchase price over par value is charged directly to retained earnings.
−Removed: In fiscal 2023 and 2021, we cancelled 15 million and 25 million shares of treasury stock, respectively.
+Added: In fiscal 2023, we cancelled 15 million shares of treasury stock.
+Added: No treasury stock was cancelled in fiscal 2024 and 2022.
Revenue and Cost Recognition
2 unchanged sentences
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.
−Removed: In certain states where we build, we are not able to complete certain outdoor features prior to the closing of the home.
+Added: In certain states where we build, we may not be 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 the portion of the home sales revenues related to these obligations and subsequently recognize the revenue upon completion of such obligations.
15 unchanged sentences
(3) bulk land sales to third parties of land we have decided no longer meets our development criteria;
−Removed: and (4) sales of commercial and retail
−Removed: properties generally located at our high-rise urban luxury condominium projects.
+Added: (4) sales of land parcels to third parties (typically because there is a superior economic use of the property);
+Added: and (5) sales of commercial and retail properties generally located at our high-rise urban luxury condominium projects.
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.
1 unchanged sentence
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.
+Added: In fiscal 2024, we sold a parcel of land to a commercial developer for net cash proceeds of $ 180.7 million , which resulted in a pre-tax gain of $ 175.2 million during the year ended October 31, 2024.
Forfeited Customer Deposits:
−Removed: Forfeited customer deposits are recognized in “Home sales revenues” in our 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.
+Added: Forfeited customer deposits are recognized in “Home sales revenues” in our Consolidated Statements of Operations and Comprehensive Income in the period in which the customer defaults on or cancels the contract and we determine that we have the right to retain the deposit.
Sales Incentives:
4 unchanged sentences
Advertising Costs
−Removed: We expense advertising costs as incurred.
+Added: Advertising costs are expensed as incurred.
Advertising costs, including brochures and signage, were $ 63.1 million, $ 49.6 million, and $ 42.5 million for the years ended October 31, 2024, 2023, and 2022, respectively.
5 unchanged sentences
Adjustments to our warranty liabilities related to homes delivered in prior periods are recorded in the period in which a change in our estimate occurs.
−Removed: Over the past several years, we have had a significant number of warranty claims related primarily to homes built in Pennsylvania and Delaware.
−Removed: See Note 7 – “Accrued Expenses” for additional information regarding these warranty charges.
Self-Insurance:
5 unchanged sentences
These estimated costs are based on an analysis of our historical claims and industry data, and include an estimate of claims incurred but not yet reported (“IBNR”).
−Removed: We engage a third-party actuary that uses our historical claim and expense data, input from our internal legal and risk management groups, as well as industry data, to estimate our liabilities related to unpaid claims, IBNR associated with the risks that we are assuming for our self-insured liability, and other required costs to administer current and expected claims.
+Added: We engage a third-party actuary that uses our historical claim and expense data, input from our internal legal and risk management groups, as well as industry data, to estimate our liabilities, on an undiscounted basis, related to unpaid claims, IBNR associated with the risks that we are assuming for our self-insured liability, and other required costs to administer current and expected claims.
These estimates are subject to uncertainty due to a variety of factors, the most significant being the long period of time between the delivery of a home to a home buyer and when a structural warranty or construction defect claim may be made, and the ultimate resolution of the claim.
Though state regulations vary, construction defect claims may be reported and resolved over a prolonged period of time, which can extend for 10 years or longer.
−Removed: As a result, the majority of the estimated liability relates to IBNR.
+Added: As a result, the majority of the estimated
+Added: liability relates to IBNR.
Adjustments to our liabilities related to homes delivered in prior years are recorded in the period in which a change in our estimate occurs.
4 unchanged sentences
Stock-Based Compensation
−Removed: We account for our stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation” (“ASC 718”).
−Removed: We use a lattice model for the valuation of our stock option grants.
+Added: We measure compensation cost for share-based compensation on the grant date.
+Added: Fair value for restricted stock units is determined based on the quoted price of our common shares on the New York Stock Exchange on the grant date, adjusted for post-vesting restrictions applicable to retirement eligible participants.
+Added: We used a lattice model for the valuation of our stock option grants.
The option pricing models used are designed to estimate the value of options that, unlike employee stock options and restricted stock units, can be traded at any time and are transferable.
In addition to restrictions on trading, employee stock options and restricted stock units may include other restrictions such as vesting periods.
−Removed: Further, such models require the input of subjective assumptions, including the expected volatility of the stock price.
+Added: Further, such models require the input of highly subjective assumptions, including the expected volatility of the stock price.
+Added: We recognize compensation expense ratably over the shorter of the vesting period or the period between the grant date and the time the award becomes nonforfeitable by the participant.
+Added: For shared-based awards containing performance conditions, we estimate the fair value of the award by evaluating the performance conditions quarterly and estimating the number of shares underlying award that are probable of being issued.
+Added: Based on this estimate, we recognize compensation expense ratably over the vesting period.
+Added: We record cumulative adjustments in the period in which estimates change.
Stock-based compensation expense is generally included in “Selling, general and administrative” expense in our Consolidated Statements of Operations and Comprehensive Income.
3 unchanged sentences
We expense legal fees related to litigation, warranty and insurance claims when incurred.
−Removed: We account for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”).
Deferred tax assets and liabilities are recorded based on temporary differences between the amounts reported for financial reporting purposes and the amounts reported for income tax purposes.
−Removed: In accordance with the provisions of ASC 740, we assess the realizability of our deferred tax assets.
A valuation allowance must be established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized.
3 unchanged sentences
Significant judgment is required in determining income tax provisions and evaluating tax positions.
−Removed: We establish reserves for income taxes when, despite the belief that our tax positions are fully supportable, we believe that our positions may be challenged and disallowed by various tax authorities.
−Removed: The consolidated tax provisions and related accruals include the impact of such reasonably estimable disallowances as deemed appropriate.
−Removed: To the extent that the probable tax outcome of these matters changes, such changes in estimates will impact the income tax provision in the period in which such determination is made.
−Removed: ASC 740 clarifies the accounting for uncertainty in income taxes recognized and prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.
+Added: ASC 740, “Income Taxes” (“ASC 740”) clarifies the accounting for uncertainty in income taxes recognized and prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.
ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.
5 unchanged sentences
Differences between amounts taken in a tax return and amounts recognized in the financial statements are considered unrecognized tax benefits.
−Removed: We believe that we have a reasonable basis for each of our filing positions and intend to defend those positions if challenged by the IRS or other taxing jurisdiction.
+Added: We believe that we have a reasonable basis for each of our filing positions and intend to defend those positions if challenged by the IRS or other taxing jurisdictions.
If the IRS or other taxing authorities do not disagree with our position, and after the statute of limitations expires, we will recognize the unrecognized tax benefit in the period that the uncertainty of the tax position is eliminated.
2 unchanged sentences
If, based on the available evidence, it is more-likely-than-not that such asset will not be realized, a valuation allowance is established against a deferred tax asset.
−Removed: The realization of a
−Removed: deferred tax asset ultimately depends on the existence of sufficient taxable income in either the carryback or carryforward periods under tax law.
+Added: The realization of a deferred tax asset ultimately depends on the existence of sufficient taxable income in either the carryback or carryforward periods under tax law.
This assessment considers, among other matters, the nature, consistency, and magnitude of current and cumulative income and losses;
8 unchanged sentences
Segment Reporting
−Removed: We operate in the following five geographic segments, with current operations generally located in the states listed below:
−Removed: Eastern Region:
+Added: During fiscal 2024 and 2023, we operated in the following five geographic segments, with operations generally located in the states listed below:
• The North region:
4 unchanged sentences
Florida, South Carolina and Texas;
−Removed: Western Region:
• The Mountain region:
5 unchanged sentences
In November 2024, the FASB issued ASU No.
+Added: 2024-03, “Income Statement—Reporting Comprehensive Income—Expense
+Added: Disaggregation Disclosures (Subtopic 220-40):
+Added: Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the financial statements.
+Added: ASU 2024-03 will be effective for our fiscal year 2028.
+Added: The amendments in this update are to be applied on a prospective basis, with the option for retrospective application.
+Added: Early adoption is permitted.
+Added: We are currently evaluating the impact this standard will have on our disclosures.
+Added: In November 2023, the FASB issued ASU No.
2023-07, “Segment Reporting (Topic 280):
4 unchanged sentences
Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis.
−Removed: We are currently reviewing the impact that the adoption of ASU 2023-07 may have on our consolidated financial statements and disclosures.
−Removed: In June 2016, the FASB issued ASU No.
−Removed: 2016-13, “Financial Instruments - Credit Losses (Topic 326):
−Removed: Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”).
−Removed: ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses.
−Removed: ASU 2016-13 became effective for our fiscal year beginning November 1, 2020, and we adopted the standard under the modified retrospective transition method.
−Removed: As a result of the adoption, we recognized a cumulative effect adjustment, net of tax, of $ 0.6 million to the opening balance of retained earnings.
−Removed: The adoption of ASU 2016-13 did not have a material impact on our consolidated financial statements or disclosures, and there have been no significant changes to our internal controls, processes, or systems as a result of implementing this new standard.
−Removed: In March 2020, the 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.
−Removed: 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.
−Removed: This guidance became effective on March 12, 2020 and can be adopted no later than December 31, 2024, with early adoption permitted.
−Removed: 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.
−Removed: Application of these expedients preserves the presentation of derivatives consistent with past presentation.
−Removed: 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.
+Added: We are currently evaluating the impact this standard will have on our disclosures.
+Added: In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740):
+Added: Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires expanded disclosure of our income tax rate reconciliation and income taxes paid.
+Added: ASU 2023-09 will be effective for our fiscal year ending October 31, 2026 and may be applied either retrospectively or prospectively.
+Added: We are currently evaluating the impact this standard will have on our disclosures.
+Added: In March 2024, the SEC issued final rules on the enhancement and standardization of climate-related disclosures.
+Added: The rules require disclosure of material climate-related risks;
+Added: activities to mitigate or adapt to such risks;
+Added: governance and management of
+Added: and material greenhouse gas (GHG) emissions from operations owned or controlled (Scope 1) and/or indirect emissions from purchased energy consumed in operations (Scope 2).
+Added: Additionally, the rules require disclosures in the notes to the financial statements of the effects of severe weather events and other natural conditions, subject to certain materiality thresholds.
+Added: On March 15, 2024, a federal appellate court imposed a temporary stay pending judicial review of these new rules and on April 4, 2024, the SEC voluntarily stayed implementation pending completion of the judicial review.
+Added: We are currently awaiting the outcome of the litigation or other actions the SEC may take with respect to this rule.
Reclassification
3 unchanged sentences
This acquisition was accounted for as an asset acquisition and was not material to our results of operations or financial condition.
−Removed: In fiscal 2021, we acquired substantially all of the assets and operations of a privately-held home builder with operations in Las Vegas, Nevada for approximately $ 38.8 million in cash.
−Removed: The assets acquired were primarily inventory for future communities, including approximately 550 home sites owned or controlled through land purchase agreements.
−Removed: This acquisition was accounted for as an asset acquisition and was not material to our results of operations or financial condition.
−Removed: Inventory at October 31, 2023 and 2022 consisted of the following (amounts in thousands):
+Added: Major components of inventory at October 31, 2024 and 2023 consisted of the following (amounts in thousands):
+Added: October 31, 2024 October 31, 2023
+Added: Land deposits and costs of future communities $ 620,040 $ 549,035
+Added: Land and land development costs 2,532,221 2,631,147
+Added: Land and land development costs associated with homes under construction 3,617,266 2,916,334
+Added: Total land and land development costs 6,769,527 6,096,516
+Added: Homes under construction 2,458,541 2,515,484
+Added: Model homes (1)
+Added: 484,857 445,578
+Added: $ 9,712,925 $ 9,057,578
+Added: (1) Includes the allocated land and land development costs associated with each of our model homes in operation.
+Added: The following table provides a summary of the composition of our inventory based on community status at October 31, 2024 and October 31, 2023 (amounts in thousands):
+Added: October 31, 2024 October 31,
Land controlled for future communities $ 200,166 $ 173,175
6 unchanged sentences
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.
−Removed: Communities that were previously offering homes for sale but are temporarily closed due to business conditions, do not have any remaining backlog, and are not expected to reopen within 12 months of the end of the fiscal period being reported on are included in land owned for future communities.
Backlog consists of homes under contract but not yet delivered to our home buyers (“backlog”).
−Removed: The amounts we have provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable in each of the three fiscal years ended October 31, 2023, 2022, and 2021, are shown in the table below (amounts in thousands):
+Added: The amounts we have provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable, included in home sales cost of revenues, in each of the three fiscal years ended October 31, 2024, 2023, and 2022, are shown in the table below (amounts in thousands):
2024 2023 2022
3 unchanged sentences
$ 59,441 $ 30,706 $ 32,741
−Removed: We have also recognized $ 30.6 million and $ 6.8 million of impairment charges on land held for sale included in land sales and other cost of revenues during the fiscal years ended October 31, 2023 and 2022, respectively.
+Added: We have also recognized $ 4.4 million, $ 30.6 million, and $ 6.8 million of impairment charges on land held for sale included in land sales and other cost of revenues during the fiscal years ended October 31, 2024, 2023, and 2022, respectively.
See Note 14, “Commitments and Contingencies,” for information regarding land purchase contracts.
5 unchanged sentences
At October 31, 2023, we determined that 251 land purchase contracts, with an aggregate purchase price of $ 3.79 billion, on which we had made aggregate deposits totaling $ 421.4 million, were VIEs, but that we were not the primary beneficiary of any VIE related to such land purchase contracts.
+Added: See Note 7, “Accrued Expenses,” for information regarding liabilities related to consolidated inventory not owned.
Interest incurred, capitalized, and expensed in each of the three fiscal years ended October 31, 2024, 2023, and 2022, was as follows (amounts in thousands):
4 unchanged sentences
Interest expensed to land sales and other cost of revenues ( 3,142 ) ( 10,787 ) ( 5,788 )
−Removed: Interest reclassified to property, construction and office equipment - net — — ( 1,034 )
Interest capitalized on investments in unconsolidated entities ( 8,404 ) ( 9,783 ) ( 6,699 )
4 unchanged sentences
We have investments in various unconsolidated entities and our ownership interest in these investments range from 2.5 % to 50 %.
−Removed: These entities, which are structured as joint ventures either (i) develop land for the joint venture participants and for sale to outside builders (“Land Development Joint Ventures”);
+Added: 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”);
−Removed: (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”).
−Removed: The table below provides information as of October 31, 2023, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands):
+Added: or (iii) develop luxury for-rent residential apartments and single family homes, commercial space, and a hotel (“Rental Property Joint Ventures”).
+Added: The table below provides information as of October 31, 2024, regarding active joint ventures that we were invested in, by joint venture category ($ amounts in thousands):
Joint Ventures Home Building
Joint Ventures Rental Property
−Removed: Joint Ventures Gibraltar
+Added: Joint Ventures Other
Joint Ventures Total
5 unchanged sentences
$ 242,966 $ — $ 65,444 $ 4,427 $ 312,837
−Removed: (1) Our total investment includes $ 121.6 million related to 11 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $ 329.3 million as of October 31, 2023, inclusive of our investment in these joint ventures.
+Added: (1) Our total investment includes $ 158.0 million related to eight unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $ 369.8 million as of October 31, 2024, inclusive of our investment in these joint ventures.
Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 25 % to 50 % .
(2) Our remaining funding commitment includes approximately $ 109.6 million related to our unconsolidated joint venture-related variable interests in VIEs.
−Removed: 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):
+Added: The table below provides information as of October 31, 2023, regarding active joint ventures that we were invested in, by joint venture category ($ amounts in thousands):
Joint Ventures Home Building
Joint Ventures Rental Property
−Removed: Joint Ventures Gibraltar
+Added: Joint Ventures Other
Joint Ventures Total
5 unchanged sentences
$ 204,438 $ — $ 184,266 $ 12,066 $ 400,770
−Removed: (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.
+Added: (1) Our total investment includes $ 121.6 million related to 11 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $ 329.3 million as of October 31, 2023, inclusive of our investment in joint ventures.
Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 25 % to 50 % .
20 unchanged sentences
The table below provides information on joint ventures entered into during fiscal 2024 ($ amounts in thousands):
+Added: Land Development Joint Ventures
+Added: Number of unconsolidated joint ventures entered into during the period 1
+Added: Investment balance at October 31, 2024
+Added: The table below provides information on joint ventures entered into during fiscal 2023 ($ amounts in thousands):
Land Development Joint Ventures Rental Property Joint Ventures
5 unchanged sentences
Noncontrolling interests in consolidated joint ventures at October 31, 2023
−Removed: The table below provides information on joint ventures entered into during fiscal 2022 ($ amounts in thousands):
−Removed: Land Development Joint Ventures Home Building Joint Ventures Rental Property Joint Ventures Gibraltar Joint Ventures
−Removed: Number of unconsolidated joint ventures entered into during the period 3 2 12 1
−Removed: Investment balance at October 31, 2022
−Removed: $ 48,600 $ 48,700 $ 132,200 2,700
Results of Operations and Intra-entity Transactions
−Removed: In fiscal 2023, 2022 and 2021, certain of our Rental Property Joint Ventures sold their underlying assets to unrelated parties or to our joint venture partner.
−Removed: In connection with these sales, we recognized gains of $ 50.9 million, $ 21.0 million, and $ 74.8 million, respectively, which is included in “Income from unconsolidated entities” in our Consolidated Statements of Operations and Comprehensive Income.
+Added: From time to time, certain of our rental property joint ventures sell assets to unrelated parties.
+Added: In fiscal 2024, 2023 and 2022, certain of our Rental Property Joint Ventures sold their underlying assets and we recognized our proportionate share of the gains of $ 24.1 million, $ 50.9 million, and $ 21.0 million, respectively, which is included in “(Loss) income from unconsolidated entities” in our Consolidated Statements of Operations and Comprehensive Income.
In fiscal 2023, we sold our ownership interest in one of our Rental Property Joint Ventures and recognized a gain of $ 16.0 million, which is included in “Income from unconsolidated entities” in our Consolidated Statements of Operations and Comprehensive Income.
No similar gains were recognized in fiscal 2024 or 2022.
−Removed: In fiscal 2022 and 2021, we recognized other-than-temporary impairment charges on our investments in certain Home Building and Rental Property Joint Ventures of $ 8.0 million and $ 2.1 million, respectively.
−Removed: No other-than-temporary impairment charges were recognized in fiscal 2023.
+Added: In fiscal 2024, and 2022, we recognized other-than-temporary impairment charges on our investments in certain Rental Property Joint Ventures of $ 6.6 million and $ 8.0 million, respectively.
+Added: No similar impairments were recognized in fiscal 2023.
In fiscal 2024, 2023 and 2022, we purchased land from unconsolidated entities, principally related to our acquisition of lots from our Land Development Joint Ventures, totaling $ 139.2 million, $ 110.7 million, and $ 54.8 million, respectively.
Our share of income from the lots we acquired was insignificant in each period.
−Removed: We sold land to unconsolidated entities, which principally involved land sales to our Home Building and Rental Property Joint Ventures, totaling $ 44.2 million, $ 434.2 million and $ 227.8 million in our fiscal 2023, 2022 and 2021.
+Added: In our normal course of business, we may contribute land to certain of our joint ventures in exchange for an ownership interest.
+Added: In fiscal 2023 and 2022, we sold land to unconsolidated entities, which principally involved land sales to our Home Building and Rental Property Joint Ventures, totaling $ 44.2 million and $ 434.2 million, respectively.
These amounts are included in “Land sales and other revenue” on our Consolidated Statements of Operations and Comprehensive Income and are generally sold at or near our land basis.
+Added: No similar land sales to unconsolidated entities occurred in fiscal 2024.
At October 31, 2024 and 2023, we had receivables due from joint ventures totaling $ 9.8 million and $ 12.6 million, respectively, primarily related to amounts we funded on behalf of our partners that had not yet been reimbursed and amounts due to us for management fees earned.
8 unchanged sentences
In some instances, we and our joint venture partner have provided joint and several guarantees in connection with loans to unconsolidated entities.
−Removed: 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;
+Added: In these situations, we generally seek to implement a reimbursement agreement with our partner that
+Added: 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.
−Removed: We believe that, as of October 31, 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.
+Added: We believe that, as of October 31, 2024, 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 all or a significant portion of the obligation.
If it is not, we and our partners would need to contribute additional capital to the venture.
8 unchanged sentences
Terms of guarantees 1 month -
−Removed: 4.0 years 1 month -
−Removed: (1) At October 31, 2023 and 2022, our maximum estimated exposure under repayment and carry cost guarantees includes approximately $ 102.3 million and $ 95.0 million, respectively, related to our unconsolidated Joint Venture VIEs.
+Added: 1 month - 4.0 years
+Added: (1) At October 31, 2024 and 2023, our maximum estimated exposure under repayment and carry cost guarantees includes approximately $ 102.3 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 nor do they include any potential exposures related to project completion guarantees or the indemnities noted above, which are not estimable.
5 unchanged sentences
Balance Sheet Classification October 31, 2024 October 31, 2023
−Removed: Number of Joint Venture VIEs that the Company is the PB and consolidates
+Added: Number of Joint Venture VIEs that the Company is the primary beneficiary and consolidates
Carrying value of consolidated VIEs assets Receivables, prepaid expenses and other assets and Investments in unconsolidated entities $ 105,300 $ 89,600
1 unchanged sentence
Our ownership interest in the above consolidated Joint Venture VIEs ranges from 75 % to 98 %.
−Removed: As shown above, we have concluded we are the PB 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.
+Added: The income/losses generated from such joint ventures were not material.
+Added: 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.
−Removed: For other VIEs, we have concluded that we are not the PB 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.
+Added: 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
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.
6 unchanged sentences
Ventures Home
−Removed: Rental Property Joint Ventures Gibraltar
+Added: Rental Property Joint Ventures Other
Ventures Total
15 unchanged sentences
Ventures Home
−Removed: Rental Property Joint Ventures Gibraltar
+Added: Rental Property Joint Ventures Other
Ventures Total
12 unchanged sentences
$ 351,154 $ 65,285 $ 531,823 $ 10,779 $ 959,041
−Removed: (1) Our underlying equity in the net assets of the unconsolidated entities was less than our net investment in unconsolidated entities by $ 40.9 million and $ 18.5 million as of October 31, 2023 and 2022, respectively, and these differences are primarily a result of interest capitalized on our investments;
+Added: (1) Our underlying equity in the net assets of the unconsolidated entities was more than our net investment in unconsolidated entities by $ 3.0 million and $ 40.9 million as of October 31, 2024 and 2023, respectively, and these differences are primarily a result of interest capitalized on our investments;
the estimated fair value of the guarantees provided to the joint ventures;
7 unchanged sentences
Ventures Home
−Removed: Rental Property Joint Ventures Gibraltar
+Added: Rental Property Joint Ventures Other
Ventures Total
4 unchanged sentences
Income (loss) from operations 56,663 46,892 ( 117,219 ) 5,241 ( 8,423 )
−Removed: Other income (2)
+Added: Other income (loss) (2)
9,478 ( 176 ) 162,885 3,026 175,213
Income before income taxes 66,141 46,716 45,666 8,267 166,790
−Removed: Income tax provision (benefit) 214 367 ( 940 ) — ( 359 )
+Added: Income tax provision 268 37 291 — 596
Net income $ 65,873 $ 46,679 $ 45,375 $ 8,267 $ 166,194
−Removed: Company’s equity in earnings of unconsolidated entities (3)
+Added: Company’s equity in earnings (losses) of unconsolidated entities (3)
$ 10,724 $ ( 6,324 ) $ ( 30,339 ) $ 2,096 $ ( 23,843 )
2 unchanged sentences
Ventures Home
−Removed: Rental Property Joint Ventures Gibraltar
+Added: Rental Property Joint Ventures Other
Ventures Total
3 unchanged sentences
Total expenses 210,185 33,784 319,062 22,084 585,115
−Removed: Loss on disposition of loans and REO — — — ( 113 ) ( 113 )
Income (loss) from operations 30,180 4,340 ( 80,411 ) 6,137 ( 39,754 )
1 unchanged sentence
2,500 205 102,865 241 105,811
−Removed: Income (loss) before income taxes 48,639 11,902 ( 1,128 ) 9,927 69,340
+Added: Income before income taxes 32,680 4,545 22,454 6,378 66,057
Income tax provision (benefit) 214 367 ( 940 ) — ( 359 )
−Removed: Net income (loss) $ 48,291 $ 11,394 $ ( 521 ) $ 9,927 $ 69,091
−Removed: Company’s equity (deficit) in earnings of unconsolidated entities (3)
+Added: Net income $ 32,466 $ 4,178 $ 23,394 $ 6,378 $ 66,416
+Added: Company’s equity in earnings of unconsolidated entities (3)
$ 13,178 $ 972 $ 34,327 $ 1,621 $ 50,098
2 unchanged sentences
Ventures Home
−Removed: Rental Property Joint Ventures Gibraltar
+Added: Rental Property Joint Ventures Other
Ventures Total
6 unchanged sentences
Other income (2) 23,292 804 36,805 — 60,901
−Removed: 8,807 317 177,777 — 186,901
Income (loss) before income taxes 48,639 11,902 ( 1,128 ) 9,927 69,340
1 unchanged sentence
Net income (loss) 48,291 11,394 ( 521 ) 9,927 69,091
−Removed: Company’s equity (deficit) in earnings of unconsolidated entities (3)
+Added: Company’s equity in earnings (losses) of unconsolidated entities (3)
$ 20,402 $ 1,068 $ ( 335 ) $ 2,588 $ 23,723
26 unchanged sentences
Senior Unsecured Term Loan
−Removed: We are party to a $ 650.0 million senior unsecured term loan facility (the “Term Loan Facility”) with a syndicate of banks.
−Removed: 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.
−Removed: In addition, this amendment replaced the London Interbank Offered Rate (“LIBOR”)-based interest rate provisions applicable to borrowings under the Term Loan Facility with Secured Overnight Financing Rate (“SOFR”)-based interest rate provisions.
−Removed: At October 31, 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 are no payments required before the final maturity date on the Term Loan Facility.
−Removed: The Term Loan Facility provides an accordion feature under which we may, subject to certain conditions set forth in the agreement, increase the Term Loan Facility up to a maximum aggregate amount of $ 1.5 billion.
−Removed: Under the Term Loan Facility, as amended, we may select interest rates equal to (i) SOFR plus an applicable margin, (ii) the base rate (as defined in the agreement) plus an applicable margin, or (iii) the federal funds/Euro rate (as defined in the agreement) plus an applicable margin, in each case, based on our leverage ratio.
+Added: We are party to a $ 650.0 million senior unsecured term loan facility (the “Term Loan Facility”) with a syndicate of banks of which $ 487.5 million matures February 14, 2028, $ 101.6 million matures on November 1, 2025 and the remaining $ 60.9 million matures on November 1, 2026.
+Added: There are no payments required before these stated maturity dates.
+Added: Under the Term Loan Facility, we may select interest rates equal to (i) SOFR plus an applicable margin, (ii) the base rate (as defined in the agreement) plus an applicable margin, or (iii) the federal funds/Euro rate (as defined in the agreement) plus an applicable margin, in each case, based on our leverage ratio.
At October 31, 2024, the interest rate on the Term Loan Facility was 5.73 % per annum.
1 unchanged sentence
and substantially all of its 100 %-owned home building subsidiaries are guarantors under the Term Loan Facility.
−Removed: The Term Loan Facility contains substantially the same financial covenants as the New Revolving Credit Facility, as described below.
+Added: The Term Loan Facility contains substantially the same financial covenants as the 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 through October 2025.
2 unchanged sentences
Revolving Credit Facility
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: At October 31, 2024, we had a $ 1.955 billion senior unsecured revolving credit facility (the “Revolving Credit Facility”) with a syndicate of banks that is scheduled to mature on February 14, 2028.
+Added: The Revolving Credit Facility provides us with a committed borrowing capacity of $ 1.955 billion, which we have the ability to increase up to $ 3.00 billion with the consent of lenders.
+Added: Under the Revolving Credit Facility, up to 100 % of the commitment is available for letters of credit.
Toll Brothers, Inc.
−Removed: and substantially all of its 100 %-owned home building subsidiaries are guarantors of the borrower’s obligations under the New Revolving Credit Facility.
−Removed: Under the New Revolving Credit Facility, up to 100 % of the commitment is available for letters of credit.
−Removed: The New Revolving Credit Facility has an accordion feature under which we may, subject to certain conditions set forth in the agreement, increase the New Revolving Credit Facility up to a maximum aggregate amount of $ 3.00 billion.
−Removed: We may select interest rates for the New Revolving Credit Facility equal to (i) SOFR plus an applicable margin or (ii) the lenders’ base rate plus an applicable margin, which in each case is based on our credit rating and leverage ratio.
−Removed: At October 31, 2023, the interest rate on outstanding borrowings under the New Revolving Credit Facility would have been 6.50 % per annum.
−Removed: We are obligated to pay an undrawn commitment fee that is based on the average daily unused amount of the Aggregate Credit Commitment and our credit ratings and leverage ratio.
−Removed: Any proceeds from borrowings under the New Revolving Credit Facility may be used for general corporate purposes.
−Removed: Under the terms of the New Revolving Credit Facility, at October 31, 2023, our maximum leverage ratio (as defined in the credit agreement) was not permitted to exceed 1.75 to 1.00, and we were required to maintain a minimum tangible net worth (as defined in the credit agreement) of no less than approximately $ 3.98 billion.
−Removed: Under the terms of the New Revolving Credit Facility, at October 31, 2023, our leverage ratio was approximately 0.24 to 1.00 and our tangible net worth was approximately
−Removed: $ 6.75 billion.
−Removed: Based upon the terms of the New Revolving Credit Facility, our ability to repurchase our common stock was limited to approximately $ 3.60 billion as of October 31, 2023 and our ability to pay cash dividends was limited to approximately $ 2.76 billion as of October 31, 2023.
−Removed: At October 31, 2023, we had no outstanding borrowings under the New Revolving Credit Facility and had outstanding letters of credit of $ 118.9 million.
+Added: and substantially all of its 100 %-owned home building subsidiaries are guarantors of the borrower’s obligations under the Revolving Credit Facility.
+Added: Both our Revolving Credit Facility and Term Loan Facility require us to maintain certain financial covenants, which include not exceeding a defined maximum leverage ratio and maintaining a minimum tangible net worth.
+Added: In addition, our ability to repurchase our common stock and pay cash dividends is limited by these agreements.
+Added: However, during fiscal 2024, these limitations did not meaningfully restrict the amount of cash dividends paid or stock repurchased.
+Added: We were in compliance with all covenants and requirements as of October 31, 2024.
+Added: At October 31, 2024, we had no outstanding borrowings under the Revolving Credit Facility and had outstanding letters of credit of $ 180.0 million.
+Added: At October 31, 2024, the interest rate on outstanding borrowings under the Revolving Credit Facility would have been 6.03 % per annum.
Loans Payable – Other
7 unchanged sentences
Carrying value of assets securing loans $ 1,326,440 $ 1,416,034
−Removed: The contractual maturities of “Loans payable – other” as of October 31, 2023, ranged from one month to 29.5 years .
+Added: The contractual maturities of “Loans payable – other” as of October 31, 2024, ranged from one day to 28.9 years .
At October 31, 2024 and 2023, senior notes consisted of the following (amounts in thousands):
−Removed: 4.375% Senior Notes due April 15, 2023 $ — $ 400,000
4.875% Senior Notes due November 15, 2025 $ 350,000 $ 350,000
6 unchanged sentences
The payment of principal and interest is fully and unconditionally guaranteed, jointly and severally, by us and substantially all of our 100 %-owned home building subsidiaries (together with Toll Brothers Finance Corp., the “Senior Note Parties”).
−Removed: The senior notes rank equally in right of payment with all the Senior Note Parties’ existing and future unsecured senior indebtedness, including the New Revolving Credit Facility and the Term Loan Facility.
−Removed: The senior notes are subordinated to the prior claims of creditors, including trade creditors, of our subsidiaries that are not guarantors of the senior notes.
+Added: The senior notes rank equally in right of payment with all the Senior Note Parties’ existing and future unsecured senior indebtedness, including the Revolving Credit Facility and the Term Loan Facility.
+Added: The senior notes are structurally subordinated to the prior claims of creditors, including trade creditors, of our subsidiaries that are not guarantors of the senior notes.
Each series of senior notes is redeemable in whole or in part at any time at our option, at prices that vary based upon the then-current rates of interest and the remaining original term of the senior notes to be redeemed.
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.
−Removed: In November 2021, we redeemed the remaining $ 409.9 million principal amount of 5.875 % Senior Notes due February 15, 2022, at par, plus accrued interest.
−Removed: In March 2021, we redeemed, prior to maturity, all $ 250.0 million aggregate principal amount of our then-outstanding 5.625 % Senior Notes due 2024.
−Removed: In connection with this redemption, we incurred a pre-tax charge of $ 34.2 million, inclusive of the write-off of unamortized deferred financing costs, which is recorded in our Consolidated Statement of Operations and Comprehensive Income.
−Removed: In the first quarter of fiscal 2021, we redeemed, prior to maturity, approximately $ 10.0 million of the $ 409.9 million then-outstanding principal amount of 5.875 % Senior Notes due February 15, 2022, plus accrued interest.
Mortgage Company Loan Facility
−Removed: Toll Brothers Mortgage Company (“TBMC”), our wholly owned mortgage subsidiary, has a mortgage warehousing agreement (“Warehousing Agreement”) with a bank, which has been amended from time to time, to finance the origination of mortgage loans by TBMC.
−Removed: 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.
−Removed: 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.
−Removed: We are also subject to an under usage fee based on outstanding balances, as defined in the Warehousing Agreement.
−Removed: Before the amendment in March 2023, the Warehousing Agreement was set to expire on March 31, 2023.
−Removed: In March 2023, the Warehousing Agreement was amended to extend the expiration date to March 30, 2024 and borrowings thereunder to bear interest at the Bloomberg Short-Term Yield Index Rate (“BSBY”) plus 1.75 % per annum (with a BSBY floor of 0.50 %).
−Removed: At October 31, 2023, the interest rate on the Warehousing Agreement was 7.15 % per annum.
−Removed: Borrowings under this facility are included in the fiscal 2024 maturities in the table below.
−Removed: At each of October 31, 2023 and 2022, there was $ 100.1 million and $ 148.9 million, respectively, outstanding under the Warehousing Agreement, which are included in liabilities in our Consolidated Balance Sheets.
−Removed: At October 31, 2023 and 2022, amounts outstanding under the agreement were collateralized by $ 104.7 million and $ 187.2 million, respectively, of mortgage loans held for sale, which are included in assets in our Consolidated Balance Sheets.
−Removed: As of October 31, 2023, there were no aggregate outstanding purchase price limitations reducing the amount available to TBMC.
−Removed: There are several restrictions on purchased loans under the agreement, including that they cannot be sold to others, they cannot be pledged to anyone other than the agent, and they cannot support any other borrowing or repurchase agreements.
+Added: During fiscal 2023 and until December 2023, our wholly owned mortgage subsidiary, Toll Brothers Mortgage Company ("TBMC"), was party to a mortgage warehousing facility that contained substantially the same terms as those described in the paragraph below.
On December 5, 2023, TBMC executed a new Warehousing Agreement (“New Warehousing Agreement”) with a bank which provides for loan purchases up to $ 75.0 million, subject to certain sublimits.
In addition, the New Warehousing Agreement, provides for an accordion feature under which TBMC may request that the aggregate commitments under the New Warehousing Agreement be increased to an amount up to $ 150.0 million for a short period of time.
−Removed: TMBC is also subject to an under usage fee based on outstanding balances, as defined in the New Warehousing Agreement.
−Removed: The New Warehousing Agreement is set to expire on December 3, 2024 and bears interest at SOFR plus 1.75 % per annum (with a SOFR floor of 2.50 %).
+Added: TBMC is also subject to an under usage fee based on outstanding balances, as defined in the New Warehousing Agreement.
+Added: Prior to its scheduled expiration on December 3, 2024, the New Warehousing Agreement was amended to extend the expiration date to December 2, 2025.
+Added: No other changes were made to the terms of the New Warehousing Agreement as a result of the amendment.
+Added: The New Warehousing Agreement bears interest at SOFR plus 1.75 % per annum (with a SOFR floor of 2.50 %).
+Added: At October 31, 2024, the interest rate on the New Warehousing Agreement was 6.59 % per annum.
+Added: At October 31, 2024 and 2023, there was $ 150.0 million and $ 100.1 million, respectively, outstanding under the agreements which are included in liabilities in our Consolidated Balance Sheets.
+Added: At October 31, 2024 and 2023, amounts outstanding under the agreements were collateralized by $ 182.8 million and $ 104.7 million, respectively, of mortgage loans held for sale, which are included in assets in our Consolidated Balance Sheets.
+Added: As of October 31, 2024, there were no aggregate outstanding purchase price limitations reducing the amount available to TBMC.
+Added: There are several restrictions on purchased loans under the agreement, including that they cannot be sold to others, they cannot be pledged to anyone other than the agent, and they cannot support any other borrowing or repurchase agreements.
As of October 31, 2024, the annual aggregate maturities of our loans and notes during each of the next five fiscal years are as follows (amounts in thousands):
7 unchanged sentences
Land, land development and construction $ 356,613 $ 286,516
+Added: Liabilities related to consolidated inventory not owned 388,778 268,630
Compensation and employee benefits 208,394 212,684
10 unchanged sentences
Our initial accrual for expected warranty costs is based upon historical warranty claim experience.
−Removed: Adjustments to our warranty liabilities related to homes delivered in prior periods are recorded in the period in which a change in our estimate occurs.
+Added: Adjustments to our warranty liabilities related to homes delivered in prior periods are recorded in the period in
+Added: which a change in our estimate occurs.
The table below provides a reconciliation of the changes in our warranty accrual during fiscal 2024, 2023, and 2022 (amounts in thousands):
4 unchanged sentences
Increase in accruals for homes closed in prior years - net 3,150 12,739 10,433
−Removed: Increase in accruals expected to be recovered from third parties (1)
+Added: (Decrease) increase in accruals expected to be recovered from third parties (1)
( 6,000 ) 58,000 29,000
Reclassification from self-insurance accruals — 696 —
−Removed: Decrease to water intrusion accrual — — ( 11,823 )
Charges incurred ( 50,249 ) ( 74,622 ) ( 62,659 )
Balance, end of year $ 189,258 $ 206,171 $ 164,409
−Removed: (1) These increases in accruals for warranty charges are expected to be recovered from our insurance carriers or suppliers, which are recorded as receivables included in “Receivables, prepaid expenses, and other assets” on our Consolidated Balance Sheets.
−Removed: Since fiscal 2014, we have received water intrusion claims from owners of homes built since 2002 in communities located in Pennsylvania and Delaware (which are in our North region).
−Removed: Our recorded remaining estimated repair costs, which reflects a reduction for the aggregate amount expended to resolve claims, were approximately $ 41.1 million at October 31, 2023 and $ 46.9 million at October 31, 2022.
−Removed: 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.
−Removed: 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:
−Removed: the closing dates of the homes;
−Removed: the number of claims received;
−Removed: our inspection of homes;
−Removed: an estimate of the number of homes we expect to repair;
−Removed: the type and cost of repairs that have been performed in each community;
−Removed: the estimated costs to remediate pending and future claims;
−Removed: the expected recovery from our insurance carriers and suppliers;
−Removed: and the previously recorded amounts related to these claims.
−Removed: 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.
−Removed: Our review process includes a number of estimates that are based on assumptions with uncertain outcomes.
−Removed: 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 .
−Removed: However, based on the facts and circumstances currently known, we do not believe that any such differences would be material.
+Added: (1) The (decrease) increase in accruals for warranty charges are expected to be recovered from our insurance carriers or suppliers, which are recorded as receivables included in “Receivables, prepaid expenses, and other assets” on our Consolidated Balance Sheets.
The following table provides a reconciliation of our effective tax rate from the federal statutory tax rate for the fiscal years ended October 31, 2024, 2023, and 2022 ($ amounts in thousands):
15 unchanged sentences
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.
−Removed: 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 rate for state income taxes, before federal benefit, will be 6.2 % in fiscal 2023.
+Added: 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 estimated that our rate for state income taxes, before federal benefit, will be 6.3 % in fiscal 2024.
Our state income tax rate, before federal benefit, was 6.2 % and 5.6 % in fiscal 2023 and 2022, respectively.
16 unchanged sentences
Increase in benefit as a result of tax positions taken in current year 3,142 2,733 833
+Added: Decrease in benefit as a result of settlements ( 1,782 ) — —
Decrease in benefit as a result of lapse of statute of limitations ( 493 ) ( 776 ) ( 1,987 )
7 unchanged sentences
The amounts accrued for interest and penalties are included in the current portion of “Income taxes payable” on our Consolidated Balance Sheets.
−Removed: The following table provides information as to the amounts recognized in our tax provision, before reduction for applicable taxes and reversal of previously accrued interest and penalties, of potential interest and penalties in each of the three fiscal years ended October 31, 2023, 2022, and 2021, and the amounts accrued for potential interest and penalties at October 31, 2023 and 2022 (amounts in thousands):
+Added: The following table provides information as to the amounts recognized in our tax provision, before reduction for applicable taxes and reversal of previously accrued interest and penalties, of potential interest and penalties in the fiscal years ended October 31, 2024, 2023, and 2022, and the amounts accrued for potential interest and penalties at October 31, 2024 and 2023 (amounts in thousands):
Expense recognized in the Consolidated Statements of Operations and Comprehensive Income
30 unchanged sentences
Cash Dividends
−Removed: On February 21, 2017, our Board of Directors approved the initiation of quarterly cash dividends to shareholders.
−Removed: In March 2023, our Board of Directors approved an increase in the quarterly dividend from $ 0.20 to $ 0.21 per share, which was previously increased from $ 0.17 to $ 0.20 in March 2022.
−Removed: During fiscal years 2023, 2022 and 2021, we declared and paid aggregate cash dividends of $ 0.83 , $ 0.77 and $ 0.62 per share, respectively, to our shareholders.
+Added: In March 2024, our Board of Directors approved an increase in the quarterly dividend from $ 0.21 to $ 0.23 per share.
+Added: During the fiscal years October 31, 2024, 2023 and 2022, we declared and paid aggregate cash dividends of $ 0.90 , $ 0.83 and $ 0.77 per share, respectively, to our shareholders.
Stock Repurchase Program
−Removed: 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 for general corporate purposes, including to obtain shares for the Company’s equity award and other employee benefit plans.
−Removed: On May 17, 2022, our Board of Directors renewed its authorization to repurchase 20 million shares of our common stock and terminated, effective the same date, the existing authorization that had been in effect since March 10, 2020.
+Added: From time to time, 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 for general corporate purposes, including to obtain shares for the Company’s equity award and other employee benefit plans.
+Added: Most recently, on December 13, 2023, the Board of Directors renewed its authorization to repurchase 20 million shares of our common stock and terminated, effective the same date, the existing authorization that had been in effect since May 17, 2022.
The Board of Directors did not fix any expiration date for this repurchase program.
−Removed: On December 13, 2023, the Board of Directors renewed its authorization to repurchase 20 million shares of our common stock and terminated, effective the same date, the existing authorization that had been in effect since May 17, 2022.
The following table provides information about the share repurchase programs for the fiscal years ended October 31, 2024, 2023, and 2022:
5 unchanged sentences
(1) Average price per share includes costs associated with the purchases.
−Removed: For the fiscal 2023 period, it also includes the excise tax accrued on our share repurchases as a result of the Inflation Reduction Act of 2022.
+Added: For the fiscal 2024 and 2023 periods, it also includes the excise tax accrued on our share repurchases as a result of the Inflation Reduction Act of 2022.
Transfer Restriction
3 unchanged sentences
Any direct or indirect transfer attempted in violation of this restriction would be void as of the date of the prohibited transfer as to the purported transferee.
−Removed: Accumulated Other Comprehensive Income
−Removed: The changes in each component of accumulated other comprehensive income (“AOCI”), for fiscal years ended October 31, 2023, 2022, and 2021, were as follows (amounts in thousands):
+Added: Accumulated Other Comprehensive Income (Loss)
+Added: The changes in each component of accumulated other comprehensive income (loss) (“AOCI”), for fiscal years ended October 31, 2024, 2023, and 2022, were as follows (amounts in thousands):
2024 2023 2022
1 unchanged sentence
Beginning balance $ 3,080 $ 2,475 $ ( 6,024 )
−Removed: Gains arising during the period 736 9,573 152
−Removed: Tax expense ( 199 ) ( 2,424 ) ( 316 )
+Added: Gains (losses) arising during the period ( 2,314 ) 736 9,573
+Added: Tax expense (benefit) 593 ( 199 ) ( 2,424 )
Net gains (losses) arising during the period ( 1,721 ) 537 7,149
−Removed: Losses reclassified from AOCI to net income (1)
+Added: Net (gains) losses reclassified from AOCI to net income (1)
( 457 ) 92 1,805
−Removed: Tax benefit (2)
+Added: Tax (expense) benefit (2)
116 ( 24 ) ( 455 )
−Removed: Net losses reclassified from AOCI to net income 68 1,350 1,338
−Removed: Other comprehensive income, net of tax 605 8,499 1,174
+Added: Net (losses) gains reclassified from AOCI to net income ( 341 ) 68 1,350
+Added: Other comprehensive (loss) income, net of tax ( 2,062 ) 605 8,499
Ending balance $ 1,018 $ 3,080 $ 2,475
4 unchanged sentences
Net gains on derivative instruments 43 6,259 28,034
−Removed: (Gains) losses reclassified from AOCI to net income (3)
+Added: (Losses) gains reclassified from AOCI to net income (3)
( 10,695 ) ( 4,784 ) ( 32 )
1 unchanged sentence
3,081 1,212 8
−Removed: Net (gains) losses reclassified from AOCI to net income ( 3,572 ) ( 24 ) 158
−Removed: Other comprehensive income, net of tax 2,687 28,010 7,133
+Added: Net (losses) gains reclassified from AOCI to net income ( 7,614 ) ( 3,572 ) ( 24 )
+Added: Other comprehensive (loss) income, net of tax ( 7,571 ) 2,687 28,010
Ending balance $ 30,259 $ 37,830 $ 35,143
4 unchanged sentences
Stock-Based Benefit Plans
−Removed: We grant stock options, restricted stock, and various types of restricted stock units to our employees and our non-employee directors under our stock incentive plans.
+Added: We grant various types of restricted stock units to our employees and our non-employee directors under our stock incentive plans.
+Added: We also granted stock options to certain of our employees and non-employee directors through fiscal year 2023.
Restricted stock unit awards may be based on performance conditions, market conditions or service over a requisite time period (time-based).
4 unchanged sentences
As a result, the Omnibus Plan is the sole plan out of which new equity awards may be granted to employees (including executive officers), directors and other eligible participants under the plan.
−Removed: The Omnibus Plan provides for the granting of incentive stock options (solely to employees) and nonqualified stock options with a term of up to 10 years at a price not less than the market price of the stock at the date of grant.
+Added: The Omnibus Plan provides for the granting of incentive stock options and nonqualified stock options with a term of up to 10 years at a price not less than the market price of the stock at the date of grant.
The Omnibus Plan also provides for the issuance of stock appreciation rights and restricted and unrestricted stock awards and stock units, which may be performance-based.
−Removed: Stock options and restricted stock units granted under the Omnibus Plan generally vest over a four-year period for employees and a two-year period for non-employee directors.
+Added: Stock options and restricted stock units granted under the Omnibus Plan generally vest over a four-year period for employees and prior to fiscal 2024, a two-year period for non-employee directors.
+Added: Beginning in fiscal 2024, stock-based compensation awards granted to non-employee directors vest over a one-year period.
Shares issued upon the exercise of a stock option or settlement of restricted stock units are either from shares held in treasury or newly issued shares.
10 unchanged sentences
The number of shares underlying the Performance-Based RSUs that may be issued to the recipients ranges from 0 % to 150 % of the base award depending on actual achievement as compared to the target performance goals.
−Removed: Shares earned based on actual performance vest pro-rata over a four-year period (provided the recipients continue to be employed by us as specified in the award document) or cliff-vest at the end of a three-year performance period.
−Removed: The value of the Performance-Based RSUs was determined to be equal to the estimated number of shares of our common stock to be issued multiplied by the closing price of our common stock on the New York Stock Exchange (“NYSE”) on the date the Performance-Based RSUs were approved by the Executive Compensation Committee (“Valuation Date”), adjusted for post-vesting restrictions applicable to retirement eligible participants.
−Removed: Compensation expense related to these grants is based on the Company’s performance against the related performance criteria, the elapsed portion of the performance period and the grant date fair value of the award.
−Removed: To estimate the fair value of the award, we evaluate the performance goals quarterly and estimate the number of shares underlying the Performance-Based RSUs that are probable of being issued.
+Added: Shares earned based on actual performance vest pro-rata over a four-year period (provided the recipients continue to be employed by us as specified in the award document) or cliff-vest at the end of a three-year performance period measured from the grant date.
+Added: Compensation expense related to these grants is based on the Company’s performance against the related performance criteria, the elapsed portion of the performance or vesting period and the grant date fair value of the award.
A summary of the status of our nonvested Performance-Based RSUs as of October 31, 2024, and changes during the year ended October 31, 2024, is presented below:
10 unchanged sentences
Aggregate grant date fair value of Performance-Based RSUs issued (in thousands) $ 5,795 $ 7,244 $ 6,156
−Removed: Performance-Based RSUs expense recognized (in thousands) $ 5,838 $ 4,346 $ 5,989
+Added: Performance-Based RSU expense recognized (in thousands) $ 6,713 $ 5,838 $ 4,346
Fair market value of Performance-Based RSUs vested (in thousands) $ 4,864 $ 5,595 $ 4,514
2 unchanged sentences
We issue time-based restricted stock units (“Time-Based RSUs”) to various officers, employees, and non-employee directors on an annual basis.
−Removed: These Time-Based RSUs generally vest in annual installments over a two-year (for non-employee directors) or four-year (for employees) period and are generally settled at the end of such period.
−Removed: The value of the Time-Based RSUs are determined to be equal to the number of shares of our common stock underlying the Time-Based RSUs multiplied by the closing price of our common stock on the NYSE on the date the Time-Based RSUs are awarded, adjusted for post-vesting restrictions applicable to retirement eligible participants.
−Removed: The fair value of Time-Based RSUs is expensed evenly over the shorter of the vesting period or the period between the grant date and the time the award becomes nonforfeitable to the participant.
−Removed: A summary of our Time-Based RSUs nonvested shares as of October 31, 2023, and changes during the year ended October 31, 2023, is presented below:
+Added: A summary of our nonvested Time-Based RSUs as of October 31, 2024, and changes during the year ended October 31, 2024, is presented below (share amounts in thousands):
Number of shares (in thousands) Weighted-average grant date fair value
10 unchanged sentences
Aggregate fair value of Time-Based RSUs issued (in thousands) $ 14,761 $ 11,114 $ 12,591
−Removed: Time-Based RSUs expense recognized (in thousands):
+Added: Time-Based RSU expense recognized (in thousands):
$ 22,365 $ 18,340 $ 15,738
17 unchanged sentences
Shares issued under stock incentive and employee stock purchase plans 910 2,026 507
−Removed: (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 under our restricted stock units programs.
−Removed: (2) Weighted-average number of antidilutive options and restricted stock units are based upon the average of the average quarterly closing prices of our common stock on the NYSE for the year.
+Added: (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.
+Added: (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.
Fair Value Disclosures
2 unchanged sentences
Financial Instrument Fair value hierarchy October 31, 2024 October 31, 2023
−Removed: Residential Mortgage Loans Held for Sale Level 2 $ 110,555 $ 185,150
−Removed: Forward Loan Commitments – Residential Mortgage Loans Held for Sale Level 2 $ 2,234 $ 9,184
+Added: Mortgage Loans Held for Sale Level 2 $ 191,242 $ 110,555
+Added: Forward Loan Commitments – Mortgage Loans Held for Sale Level 2 $ 2,152 $ 2,234
Interest Rate Lock Commitments (“IRLCs”) Level 2 $ ( 962 ) $ ( 4,135 )
26 unchanged sentences
To manage the risk of non-performance of investors regarding the Forward Commitments, we assess the creditworthiness of the investors on a periodic basis.
−Removed: We recognize inventory impairment charges based on the difference in the carrying value of the inventory and its fair value at the time of the evaluation.
+Added: We recognize inventory impairment 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.
+Added: 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.
+Added: 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,” for additional information regarding our methodology on determining fair value.
1 unchanged sentence
If we used a different input for any of the various unobservable inputs used in our impairment analysis, the results of the analysis may have been different, absent any other changes.
−Removed: Impairments of inventory were insignificant in each of the three fiscal years ended October 31, 2023, 2022, and 2021 and, accordingly, we did not disclose the ranges of certain quantitative unobservable inputs utilized in determining the fair value of these impaired communities.
+Added: Impairments on operating communities were not significant in each of the three fiscal years ended October 31, 2024, 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.
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 at October 31, 2024 and 2023 (amounts in thousands):
19 unchanged sentences
A portion of the deferred compensation and interest earned may be forfeited by a participant if he or she elects to withdraw the compensation prior to the end of the deferral period.
−Removed: We accrued $ 35.6 million and $ 35.7 million at October 31, 2023 and 2022, respectively, for our obligations under the plan.
+Added: We accrued $ 36.6 million and $ 35.6 million at October 31, 2024 and 2023, respectively, for our obligations under the plan, which is included in “Accrued expenses” in the Consolidated Balance Sheets.
Defined Benefit Retirement Plans
18 unchanged sentences
Benefit payments ( 2,818 ) ( 2,748 ) ( 2,544 )
−Removed: Change in unrecognized (gain) loss ( 1,957 ) ( 9,573 ) ( 908 )
+Added: Change in unrecognized loss (gain) 1,910 ( 1,957 ) ( 9,573 )
Projected benefit obligation, end of year $ 37,034 $ 35,376 $ 36,904
4 unchanged sentences
Unamortized prior service cost, end of year $ 2,665 $ 3,442 $ 3,678
−Removed: Accumulated unrecognized gain (loss), October 31 $ 7,926 $ 7,285 $ ( 2,288 )
+Added: Accumulated unrecognized gain, October 31 $ 4,378 $ 7,926 $ 7,285
Accumulated benefit obligation, October 31 $ 37,034 $ 35,376 $ 36,904
32 unchanged sentences
At October 31, 2024, we had outstanding surety bonds amounting to $ 820.2 million, primarily related to our obligations to governmental entities to construct improvements in our communities.
−Removed: We estimate that approximately $ 355.6 million of work remains on these improvements.
We have an additional $ 337.3 million of surety bonds outstanding that guarantee other obligations.
−Removed: We do not believe it is probable that any outstanding bonds will be drawn upon.
−Removed: At October 31, 2023, we had outstanding letters of credit of $ 118.9 million under our New Revolving Credit Facility.
+Added: Although significant construction and development activities have been completed related to these improvements, the bonds are generally not released until all construction and development activities are completed and acceptance by the counterparty is received.
+Added: The aggregate amount of surety bonds outstanding is in excess of the estimated cost of the remaining work to be performed.
+Added: We do not believe that it is probable that any outstanding bonds will be drawn upon.
+Added: At October 31, 2024, we had outstanding letters of credit of $ 180.0 million under our Revolving Credit Facility.
These letters of credit were issued to secure our various financial obligations, including insurance policy deductibles and other claims, land deposits, and security to complete improvements in communities in which we are operating.
32 unchanged sentences
At October 31, 2023, ROU assets and lease liabilities were $ 102.8 million and $ 123.9 million, respectively.
−Removed: Payments on lease liabilities totaled $ 20.2 million, $ 17.7 million, and $ 19.4 million for the years ending October 31, 2023, 2022, and 2021, respectively.
+Added: Payments on lease liabilities totaled $ 22.5 million and $ 20.2 million, and $ 17.7 million for the years ending October 31, 2024, 2023, and 2022 respectively.
Lease expense includes costs for leases with terms in excess of one year as well as short-term leases with terms of one year or less.
−Removed: For the fiscal years ending October 31, 2023, 2022, and 2021, our total lease expense was $ 27.1 million, $ 25.6 million,
−Removed: and $ 22.2 million, respectively, inclusive of variable lease costs of approximately $ 4.2 million, $ 3.3 million, and $ 3.1 million, respectively.
+Added: For the fiscal years ending October 31, 2024, 2023, and 2022, our total lease expense was $ 24.3 million, $ 27.1 million, and $ 25.6 million, respectively, inclusive of variable lease costs of approximately $ 4.1 million, $ 4.2 million, and $ 3.3 million, respectively.
Short-term lease costs and sublease income was de minimis.
17 unchanged sentences
Other Income – Net
−Removed: The table below provides the components of “Other income – net” for the years ended October 31, 2023, 2022, and 2021 (amounts in thousands):
+Added: The table below provides the significant components of “Other income – net” for the years ended October 31, 2024, 2023, and 2022 (amounts in thousands):
2024 2023 2022
2 unchanged sentences
Management fee income earned by home building operations 4,297 4,462 7,968
−Removed: 4,462 7,968 1,646
Gain on litigation settlements – net — 27,683 141,234
−Removed: 27,683 141,234 —
Other 6,968 ( 2,606 ) ( 8,673 )
Total other income – net $ 69,296 $ 67,518 $ 171,377
−Removed: $ 67,518 $ 171,377 $ 40,614
In fiscal 2022, we entered into a $ 192.5 million settlement agreement with Southern California Gas Company to resolve our claims associated with a natural gas leak that occurred from October 2015 through February 2016 at the Aliso Canyon underground storage facility located near certain of our communities in southern California.
2 unchanged sentences
Coincident with this settlement, we seeded a new Toll Brothers charitable foundation with $ 10.0 million which was recorded in Selling, general and administrative in our Consolidated Statements of Operations and Comprehensive Income in fiscal 2022.
−Removed: Income from ancillary businesses is generated by our mortgage, title, landscaping, smart home technology, Gibraltar, apartment living, city living, and golf course and country club operations.
+Added: Income from ancillary businesses is generated by our mortgage, title, landscaping, smart home technology, apartment living, city living, and golf course and country club operations.
The table below provides revenues and expenses for these ancillary businesses for the years ended October 31, 2024, 2023, and 2022 (amounts in thousands):
2 unchanged sentences
Expenses $ 146,081 $ 137,426 $ 110,842
−Removed: In fiscal 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.
−Removed: In fiscal 2023 and fiscal 2022, we recognized $ 8.4 million and $ 0.3 million of write-offs related to previously incurred costs that we believed not to be recoverable in our apartment rental development business operations, respectively.
−Removed: In fiscal 2023, income from ancillary businesses included management fees earned on our apartment rental development, high-rise urban luxury condominium, and Gibraltar unconsolidated entities and operations totaling $ 34.7 million.
−Removed: In fiscal 2022 and 2021, income from ancillary businesses included management fees earned on our apartment rental development and Gibraltar unconsolidated entities and operations totaling $ 25.9 million and $ 22.7 million, respectively.
+Added: In fiscal 2024 and 2022, our smart home technology business recognized gains of $ 4.4 million and $ 9.0 million, respectively, from bulk sales of security monitoring accounts, which is included in income from ancillary businesses above.
+Added: No similar gains were recognized in fiscal 2023.
+Added: In fiscal 2024, 2023 and 2022, we recognized $ 8.9 million and $ 8.4 million, and $ 0.3 million, of write-offs related to previously incurred costs that we believed not to be recoverable in our apartment rental development business operations, respectively.
+Added: In fiscal 2024 and 2023, income from ancillary businesses included management fees earned on our apartment rental development, high-rise urban luxury condominium, and other unconsolidated entities and operations totaling $ 35.7 million and $ 34.7 million, respectively.
+Added: In fiscal 2022, income from ancillary businesses included management fees earned on our apartment rental development and other unconsolidated entities and operations totaling $ 25.9 million.
Prior to fiscal 2023, management fees earned on our high-rise luxury condominium unconsolidated entities were included in “Management fees earned by home building operations” above.
13 unchanged sentences
Land sales and other revenue (2)
+Added: 283,408 128,911 564,388
Total consolidated $ 10,846,740 $ 9,994,937 $ 10,275,558 $ 2,085,640 $ 1,842,371 $ 1,703,726
−Removed: (1) Included in our fourth quarter of fiscal 2022 is a $ 141.2 million net gain related to a favorable litigation settlement as further discussed in Note 15, “Other Income - Net”.
+Added: (1) Included in fiscal 2022 is a $ 141.2 million net gain related to a favorable litigation settlement as further discussed in Note 15, “Other Income - Net”.
+Added: (2) Land sales and other revenues by segment has been provided in the table below.
“Corporate and other” is comprised principally of general corporate expenses such as our executive offices;
2 unchanged sentences
income from certain of our ancillary businesses, including our apartment rental development business and our high-rise urban luxury condominium operations;
−Removed: and income from our Rental Property Joint Ventures and Gibraltar Joint Ventures.
+Added: and income from our Rental Property Joint Ventures and Other Joint Ventures.
+Added: Land sales and other revenues for each of the fiscal years ended October 31, 2024, 2023, and 2022 are shown in the table below (amounts in thousands):
+Added: 2024 2023 2022
+Added: North $ 4,486 $ 32,620 $ 139,439
+Added: Mid-Atlantic (1)
+Added: 208,436 13,169 38,423
+Added: South 25,930 19,014 24,415
+Added: Mountain 28,277 1,140 8,897
+Added: Pacific 1,365 8,705 30,900
+Added: Total home building 268,494 74,648 242,074
+Added: Corporate and other 14,914 54,263 322,314
+Added: Total consolidated $ 283,408 $ 128,911 $ 564,388
+Added: (1) Included in the year ended October 31, 2024 is a $ 185.0 million land sale to a commercial developer in February 2024, which is further discussed in Note 1, “Significant Accounting Policies”.
+Added: “Corporate and other” is comprised principally of activities from our apartment rental development business.
Total assets for each of our segments at October 31, 2024 and 2023, are shown in the table below (amounts in thousands):
7 unchanged sentences
Total consolidated $ 13,367,932 $ 12,527,018
−Removed: “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, our apartment rental development and high-rise urban luxury condominium businesses, and our mortgage and title subsidiaries.
+Added: “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, manufacturing facilities, our apartment rental development operations, and our mortgage and title subsidiaries.
Inventory for each of our segments, as of the dates indicated, is shown in the table below (amounts in thousands):
22 unchanged sentences
Total consolidated $ 59,441 $ 30,706 $ 32,741
−Removed: In the year ended October 31, 2023, we recognized $ 30.6 million of land impairment charges included in land sales and other cost of revenues, of which $ 15.6 million, $ 10.3 million, $ 2.2 million, and $ 2.5 million were in our North, Mid-Atlantic, Pacific
−Removed: and Corporate and other segments, respectively.
+Added: In the year ended October 31, 2024, we recognized $ 4.4 million of land impairment charges included in land sales and other cost of revenues, of which $ 0.6 million and $ 3.8 million were in our Mid-Atlantic and Corporate and other segments, respectively.
+Added: In the year ended October 31, 2023 we recognized $ 30.6 million of land impairment charges included in land sales and other cost of revenues, of which $ 15.6 million, $ 10.3 million, $ 2.2 million, and $ 2.5 million were in our North, Mid-Atlantic, Pacific and Corporate and other segments, respectively.
In the year ended October 31, 2022 we recognized $ 6.8 million of land impairment charges included in land sales and other cost of revenues in our North segment.
12 unchanged sentences
Total consolidated $ 1,007,417 $ 959,041 $ ( 23,843 ) $ 50,098 $ 23,723
−Removed: “Corporate and other” is comprised of our investments in the Rental Property Joint Ventures and the Gibraltar Joint Ventures.
+Added: “Corporate and other” is comprised of our investments in the Rental Property Joint Ventures and Other Joint Ventures.
Supplemental Disclosure to Consolidated Statements of Cash Flows
5 unchanged sentences
Cost of inventory acquired through seller financing, municipal bonds, or included in accrued expenses - net $ 186,714 $ 359,042 $ 273,893
−Removed: Reclassification from inventory to property, construction, and office equipment - net $ 1,170 $ — $ 39,309
Transfer of inventory to investment in unconsolidated entities $ 4,167 $ 1,000 $ 46,019
+Added: Transfer of investment in unconsolidated entities to inventory
+Added: $ 9,049 $ 1,675 $ 474
Transfer of other assets to investment in unconsolidated entities, net $ — $ 47,780 $ 100,123
Transfer of other assets to property, construction, and office equipment - net $ 133,020 $ 47,280 $ 16,168
+Added: Income tax expense recognized in total comprehensive income $ 6,197 $ 6,710 $ 11,519
Unrealized (loss) gain on derivatives $ ( 19,959 ) $ ( 9,767 ) $ 34,680
+Added: Accrued excise tax and other share repurchases $ 5,213 $ 4,355 $ —
+Added: Miscellaneous increases (decreases) to investments in unconsolidated entities $ 7,468 $ ( 5,917 ) $ 797
At October 31,
11 unchanged sentences
Land sales and other (1)
+Added: $ 73,458 $ 3,472 $ 190,466 $ 16,012
Gross profit (loss):
1 unchanged sentence
Land sales and other (1)
+Added: $ 34,465 $ ( 5,306 ) $ 177,487 $ 5,851
Income before income taxes $ 621,073 $ 503,627 $ 649,779 $ 311,161
12 unchanged sentences
Income before income taxes $ 604,966 $ 553,017 $ 430,592 $ 253,796
−Removed: $ 841,144 $ 365,951 $ 295,815 $ 200,816
Net income $ 445,536 $ 414,789 $ 320,216 $ 191,530
−Removed: $ 640,536 $ 273,467 $ 220,593 $ 151,904
Earnings per share (2)
4 unchanged sentences
Diluted 108,388 111,123 112,184 112,336
−Removed: (1) Included in our fourth quarter of fiscal 2022 is a $ 141.2 million net gain related to a favorable litigation settlement as further discussed in Note 15, “Other Income - Net”.
+Added: (1) Land sales and other revenue and gross profit in the three months ended April 30, 2024 included $ 185.0 million and $ 124.1 million, respectively, related to the sale of a single parcel of land in northern Virginia to a commercial developer.
(2) Due to rounding, the sum of the quarterly earnings per share amounts may not equal the reported earnings per share for the year.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.