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Loans Payable, Senior Notes and Mortgage Company Loan Facility | 9 Months Ended
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Jul. 31, 2022
Debt Disclosure [Abstract] |
Loans Payable, Senior Notes, and Mortgage Company Loan Facility | Loans Payable, Senior Notes, and Mortgage Company Loan Facility Loans Payable At July 31, 2022 and October 31, 2021, loans payable consisted of the following (amounts in thousands):
| July 31, 2022 |  | October 31, 2021
Senior unsecured term loan | $ | 650,000 |  |  | $ | 650,000 |
Loans payable – other | 552,290 |  |  | 364,042 |
Deferred issuance costs | (2,112) |  |  | (2,508) |
| $ | 1,200,178 |  |  | $ | 1,011,534 |
Senior Unsecured Term Loan We are party to a $650.0 million senior unsecured term loan facility (the “Term Loan Facility”) with a syndicate of banks. On October 31, 2021, we entered into term loan extension agreements to extend the maturity date of $548.4 million of outstanding term loans from November 1, 2025 to November 1, 2026, with the remainder of the term loans remaining due November 1, 2025. Other than $101.6 million of term loans that are scheduled to mature on November 1, 2025, there are no payments required before the final maturity date on the Term Loan Facility. At July 31, 2022, the interest rate on the Term Loan Facility was 3.43% per annum. We and substantially all of our 100%-owned home building subsidiaries are guarantors under the Term Loan Facility. The Term Loan Facility contains substantially the same financial covenants as the 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. The interest rate swaps effectively fix the interest cost on the $400.0 million at 0.369% plus the spread set forth in the pricing schedule in the Term Loan Facility. The spread at July 31, 2022 was 1.05%. These interest rate swaps were designated as cash flow hedges. Revolving Credit Facility We have a $1.905 billion, senior unsecured revolving credit facility (the “Revolving Credit Facility”) with a syndicate of banks. On October 31, 2021, we entered into extension letter agreements which extended the maturity date of $1.78 billion of the revolving loans and commitments under the Revolving Credit Facility from November 1, 2025 to November 1, 2026, with the remainder of the revolving loans and commitments continuing to terminate on November 1, 2025. We and substantially all of our 100%-owned home building subsidiaries are guarantors under the Revolving Credit Facility. Under the terms of the Revolving Credit Facility, at July 31, 2022, our maximum leverage ratio, as defined, may not exceed 1.75 to 1.00, and we are required to maintain a minimum tangible net worth, as defined, of no less than approximately $2.09 billion. Under the terms of the Revolving Credit Facility, at July 31, 2022, our leverage ratio was approximately 0.50 to 1.00, and our tangible net worth was approximately $5.47 billion. Based upon the terms of the Revolving Credit Facility, our ability to repurchase our common stock was limited to approximately $4.28 billion as of July 31, 2022. In addition, under the provisions of the Revolving Credit Facility, our ability to pay cash dividends was limited to approximately $3.38 billion as of July 31, 2022. At July 31, 2022, we had no outstanding borrowings under the Revolving Credit Facility and had approximately $94.2 million of outstanding letters of credit that were issued under the Revolving Credit Facility. At July 31, 2022, the interest rate on outstanding borrowings under the Revolving Credit Facility would have been 3.56% per annum. In August 2022, we borrowed $400.0 million under our Revolving Credit Facility. Loans Payable – Other “Loans payable – other” primarily represents purchase money mortgages on properties we acquired that the seller had financed, project-level financing, and various revenue bonds that were issued by government entities on our behalf to finance community infrastructure and our manufacturing facilities. At July 31, 2022, the weighted-average interest rate on “Loans payable – other” was 4.00% per annum. Senior Notes At July 31, 2022, we had five issues of senior notes outstanding with an aggregate principal amount of $2.00 billion. In our first quarter of fiscal 2022, we redeemed the remaining $409.9 million principal amount of 5.875% Senior Notes due February 15, 2022, at par, plus accrued interest. Mortgage Company Loan Facility Toll Brothers Mortgage Company (“TBI Mortgage”), our wholly owned mortgage subsidiary, has a mortgage warehousing agreement (the “Warehousing Agreement”) with a bank, which has been amended from time to time, to finance the origination of mortgage loans by TBI Mortgage. The Warehousing Agreement is accounted for as a secured borrowing under ASC 860, “Transfers and Servicing.” The Warehousing Agreement provides for loan purchases up to $75.0 million, subject to certain sublimits. In addition, the Warehousing Agreement provides for an accordion feature under which TBI Mortgage 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. Before amendment and restatement, the Warehousing Agreement was set to expire on April 2, 2022, and borrowings thereunder bore interest at LIBOR plus 1.75% per annum. In April 2022, the Warehousing Agreement was amended and restated to extend the expiration date to March 31, 2023 and borrowings thereunder will bear interest at the Bloomberg Short-Term Bank Yield Index Rate (“BSBY”) (with a BSBY floor of 0.50%) plus 1.75% per annum. At July 31, 2022, the interest rate on the Warehousing Agreement, as amended and restated, was 4.05% per annum

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 + Details
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