XML 36 R25.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Investments in Unconsolidated Entities (Tables) | 9 Months Ended
--- | ---
Jul. 31, 2022
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] |
Summary of Joint Venture Information | The table below provides information as of July 31, 2022, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands):
| Land Development Joint Ventures |  | Home Building Joint Ventures |  | Rental Property Joint Ventures |  | Gibraltar Joint Ventures |  | Total
Number of unconsolidated entities | 15 |  | 1 |  | 41 |  | 4 |  | 61
Investment in unconsolidated entities (1) | $ | 320,263 |  |  | $ | 3,972 |  |  | $ | 426,850 |  |  | $ | 16,481 |  |  | $ | 767,566 |
Number of unconsolidated entities with funding commitments by the Company | 12 |  | — |  | 16 |  | 1 |  |  | 29
Company’s remaining funding commitment to unconsolidated entities (2) | $ | 121,728 |  |  | $ | — |  |  | $ | 103,108 |  |  | $ | 13,326 |  |  | $ | 238,162 |
(1) Our total investment includes $97.6 million related to 13 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $199.9 million as of July 31, 2022. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 20% to 50%. (2) Our remaining funding commitment includes approximately $104.9 million related to our unconsolidated joint venture-related variable interests in VIEs.
Summary of Joint Ventures Borrowing information | Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at July 31, 2022, regarding the debt financing obtained by category ($ amounts in thousands):
| Land Development Joint Ventures |  |  |  | Rental Property Joint Ventures |  |  |  | Total
Number of joint ventures with debt financing | 8 |  |  |  | 34 |  |  |  | 42
Aggregate loan commitments | $ | 532,685 |  |  |  |  | $ | 3,262,234 |  |  |  |  | $ | 3,794,919 |
Amounts borrowed under loan commitments | $ | 419,031 |  |  |  |  | $ | 1,646,157 |  |  |  |  | $ | 2,065,188 |
New joint venture formations | The table below provides information on joint ventures entered into during the nine-months ended July 31, 2022 ($ amounts in thousands):
| Land Development Joint Ventures |  | Rental Property Joint Ventures |  | Gibraltar Joint Ventures
Number of unconsolidated joint ventures entered into during the period | 3 |  | 11 |  | 1 |
Investment balance at July 31, 2022 | $ | 44,500 |  |  | $ | 118,600 |  |  | $ | 2,400 |
In the first quarter of fiscal 2022, we entered into a joint venture with an unrelated party to develop a luxury for-rent residential apartment project in Washington, D.C. on land which we contributed to the venture. Under the terms of the joint venture agreement, our partner had the right to put their interest back to us if certain conditions were not satisfied. Accordingly, the land we contributed and subsequent additional spend, which had a carrying value of $60.1 million, was previously recorded on our balance sheet under “Receivables, prepaid expenses, and other assets.” During our third quarter of fiscal 2022, the put option lapsed and we deconsolidated this land and recognized the land sale. The table below provides information on joint ventures entered into during the nine-months ended July 31, 2021 ($ amounts in thousands):
| Land Development Joint Ventures |  | Rental Property Joint Ventures
Number of unconsolidated joint ventures entered into during the period | 4 |  |  | 4
Investment balance at July 31, 2021 | $ | 102,700 |  |  | $ | 51,300 |
Subsequent event In August 2022, we entered into two joint ventures with an unrelated party to develop two luxury condominium communities in the New York City metropolitan area. Prior to the formation of these ventures, we capitalized approximately $106.5 million of land and land development costs. Our partner acquired a 55% interest in these ventures for approximately $51.6 million, which equaled our pro-rata cost basis. We received cash of $61.2 million as a result of these formations, which included a combination of partner and loan proceeds, resulting in our initial investment in these ventures of $45.5 million. Concurrent with their formation, the joint ventures entered into construction loan agreements aggregating $219.7 million to finance the remaining development of these projects, of which $17.6 million was borrowed at the closing of the ventures. We, and an affiliate of our partner, provided certain guarantees under the construction loan agreements. We estimate that our maximum exposure under recourse guarantees, if the full amount of the loan commitments were borrowed, would be $44.9 million without taking into account any recoveries from the underlying collateral or any reimbursement from our partner.
Summary of Unconsolidated Entities Debt Obligations, Loan Commitments and Guarantees | Information with respect to certain of the Company’s unconsolidated entities’ outstanding debt obligations, loan commitments and our guarantees thereon are as follows ($ amounts in thousands):
| July 31, 2022 |  |  |
Loan commitments in the aggregate | $ | 2,623,200 |  |  |  |
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1) | $ | 544,600 |  |  |  |
Debt obligations borrowed in the aggregate | $ | 980,600 |  |  |  |
Our maximum estimated exposure under repayment and carry cost guarantees of the debt obligations borrowed | $ | 306,500 |  |  |  |
Estimated fair value of guarantees provided by us related to debt and other obligations | $ | 15,300 |  |  |  |
Terms of guarantees | 1 month - 3.9 years |  |  |
(1) Our maximum estimated exposure under repayment and carry cost guarantees includes approximately $95.0 million related to our unconsolidated Joint Venture VIEs.
Condensed balance sheet | Condensed Combined Balance Sheets:
| July 31, 2022 |  | October 31, 2021
Cash and cash equivalents | $ | 233,544 |  |  | $ | 153,582 |
Inventory | 1,062,469 |  |  | 964,962 |
Loans receivable – net | 38,666 |  |  | 86,727 |
Rental properties | 1,581,268 |  |  | 1,496,355 |
Rental properties under development | 1,303,236 |  |  | 697,659 |
Other assets | 296,201 |  |  | 227,579 |
Total assets | $ | 4,515,384 |  |  | $ | 3,626,864 |
Debt – net of deferred financing costs | $ | 2,040,702 |  |  | $ | 1,677,619 |
Other liabilities | 308,845 |  |  | 248,545 |
Members’ equity | 2,165,837 |  |  | 1,700,700 |
Total liabilities and equity | $ | 4,515,384 |  |  | $ | 3,626,864 |
Company’s net investment in unconsolidated entities (1) | $ | 767,566 |  |  | $ | 599,101 |
(1) Our underlying equity in the net assets of the unconsolidated entities was (less) more than our net investment in unconsolidated entities by $(5.4) million and $16.5 million as of July 31, 2022 and October 31, 2021, respectively, and these differences are primarily a result of other than temporary impairments we have recognized; interest capitalized on our investments; the estimated fair value of the guarantees provided to the joint ventures; unrealized gains on our retained joint venture interests; gains recognized from the sale of our ownership interests; and distributions from entities in excess of the carrying amount of our net investment.
Condensed statements of operations and comprehensive income | Condensed Combined Statements of Operations:
| Three months ended July 31, |  | Nine months ended July 31,
| 2022 |  | 2021 |  | 2022 |  | 2021
Revenues | $ | 114,542 |  |  | $ | 89,304 |  |  | $ | 401,065 |  |  | $ | 268,257 |
Cost of revenues | 60,566 |  |  | 52,414 |  |  | 256,256 |  |  | 209,273 |
Other expenses | 45,967 |  |  | 37,497 |  |  | 128,742 |  |  | 107,968 |
Total expenses | 106,533 |  |  | 89,911 |  |  | 384,998 |  |  | 317,241 |
Loss on disposition of loans and real estate owned | — |  |  | (2,575) |  |  | (113) |  |  | (2,785) |
Income (loss) from operations | 8,009 |  |  | (3,182) |  |  | 15,954 |  |  | (51,769) |
Other income (2) | 3,919 |  |  | 44,065 |  |  | 44,156 |  |  | 79,398 |
Income before income taxes | 11,928 |  |  | 40,883 |  |  | 60,110 |  |  | 27,629 |
Income tax expense (benefit) | 37 |  |  | 27 |  |  | 194 |  |  | (1,632) |
Net income including earnings from noncontrolling interests | 11,891 |  |  | 40,856 |  |  | 59,916 |  |  | 29,261 |
Less: income attributable to noncontrolling interest | — |  |  | — |  |  | — |  |  | (174) |
Net income attributable to controlling interest | $ | 11,891 |  |  | $ | 40,856 |  |  | $ | 59,916 |  |  | $ | 29,087 |
Company’s equity in earnings of unconsolidated entities (3) | $ | 2,984 |  |  | $ | 16,636 |  |  | $ | 27,954 |  |  | $ | 28,313 |
(2) The nine months ended July 31, 2022 includes $29.9 million related to the sale of an asset by one Rental Property Joint Venture. The three months and nine months ended July 31, 2021 includes $42.3 million and $74.9 million, respectively, related to the sale of assets by our Rental Property Joint Ventures. (3) Differences between our equity in earnings of unconsolidated entities and the underlying net income (loss) of the entities are primarily a result of distributions from entities in excess of the carrying amount of our investment; promote earned on the gains recognized by joint ventures and those promoted cash flows being distributed; other than temporary impairments we have recognized; recoveries of previously incurred charges; unrealized gains on our retained joint venture interests; gains recognized from the sale of our investment to our joint venture partner; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired.
Consolidated Joint Venture Related Variable Interest Entities | The table below provides information as of July 31, 2022 and October 31, 2021, regarding our consolidated joint venture-related variable interests in VIEs ($ amounts in thousands):
| Balance Sheet Classification | July 31, 2022 | October 31, 2021
Number of Joint Venture VIEs that the Company is the primary beneficiary and consolidates |  | 5 |  | 5 |
Carrying value of consolidated VIEs assets | Receivables prepaid expenses, and other assets and Investments in unconsolidated entities | $ | 82,000 |  | $ | 90,800 |
Our partners’ interests in consolidated VIEs | Noncontrolling interest | $ | 9,700 |  | $ | 39,400 |
Our ownership interest in the above consolidated Joint Venture VIEs ranges from 82% to 98%.

X
- Definition Consolidated Joint Venture Related Variable Interest Entities + References No definition available. + Details
Name: | tol_ConsolidatedJointVentureRelatedVariableInterestEntitiesTableTextBlock
Namespace Prefix: | tol_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Equity method investment summarized balance sheet. + References No definition available. + Details
Name: | tol_EquityMethodInvestmentSummarizedBalanceSheetTableTextBlock
Namespace Prefix: | tol_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Equity Method Investment Summarized Statements of Operations [Table Text Block] [Table Text Block] + References No definition available. + Details
Name: | tol_EquityMethodInvestmentSummarizedStatementsOfOperationsTableTextBlockTableTextBlock
Namespace Prefix: | tol_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition New joint venture formations + References No definition available. + Details
Name: | tol_NewJointVentureFormationsTableTextBlock
Namespace Prefix: | tol_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Summary of Unconsolidated Entities Debt Obligations, Loan Commitments and Guarantees + References No definition available. + Details
Name: | tol_SummaryOfUnconsolidatedEntitiesDebtObligationsLoanCommitmentsAndGuaranteesTableTextBlock
Namespace Prefix: | tol_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Summary of Joint Venture Information [Table Text Block] + References No definition available. + Details
Name: | tol_SummaryofJointVentureInformationTableTextBlock
Namespace Prefix: | tol_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Summary of Joint Ventures Borrowing information [Table Text Block] + References No definition available. + Details
Name: | tol_SummaryofJointVenturesBorrowinginformationTableTextBlock
Namespace Prefix: | tol_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsInAndAdvancesToAffiliatesScheduleOfInvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration