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Stock-Based Benefit Plans | 12 Months Ended
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Oct. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-Based Benefit Plans | Stock-Based Benefit Plans We grant stock options, restricted stock, and various types of restricted stock units to our employees and our non-employee directors under our stock incentive plans. Restricted stock unit awards may be based on performance conditions, market conditions or service over a requisite time period (time-based). On March 12, 2019, shareholders approved the Toll Brothers, Inc. 2019 Omnibus Incentive Plan (the “Omnibus Plan”), which succeeded the Toll Brothers, Inc. Stock Incentive Plan for Employees (2014) and the Toll Brothers, Inc. Stock Incentive Plan for Non-Executive Directors (2016) with respect to equity awards granted after its adoption, and no additional equity awards may be granted under such prior plans. As a result, the Omnibus Plan is the sole plan out of which new equity awards may be granted to employees (including executive officers), directors and other eligible participants under the plan. The Omnibus Plan provides for the granting of incentive stock options (solely to employees) and nonqualified stock options with a term of up to 10 years at a price not less than the market price of the stock at the date of grant. The Omnibus Plan also provides for the issuance of stock appreciation rights and restricted and unrestricted stock awards and stock units, which may be performance-based. Stock options and restricted stock units granted under the Omnibus Plan generally vest over a four-year period for employees and a two-year period for non-employee directors. Shares issued upon the exercise of a stock option or settlement of restricted stock units are either from shares held in treasury or newly issued shares. At October 31, 2023, 2022, and 2021, we had 3.7 million; 5.0 million; and 5.7 million shares, respectively, available for grant under the plans. The following table provides information regarding the amount of total stock-based compensation expense recognized by us for fiscal year 2023, 2022, and 2021 (amounts in thousands):
| 2023 |  | 2022 |  | 2021
Total stock-based compensation expense recognized | $ | 24,805 |  |  | $ | 21,095 |  |  | $ | 23,187 |
Income tax benefit recognized | $ | 6,291 |  |  | $ | 5,312 |  |  | $ | 5,910 |
At October 31, 2023, the aggregate unamortized value of outstanding stock-based compensation awards was approximately $23.2 million and the weighted-average period over which we expect to recognize such compensation costs was approximately 2.5 years. Performance-Based Restricted Stock Units: In fiscal 2023, 2022, and 2021, the Executive Compensation Committee approved awards of performance-based restricted stock units (“Performance-Based RSUs”) relating to shares of our common stock to certain members of our senior management. The number of shares earned for Performance-Based RSUs is based on the attainment of certain operational performance metrics approved by the Executive Compensation Committee in the year of grant. The number of shares underlying the Performance-Based RSUs that may be issued to the recipients ranges from 0% to 150% of the base award depending on actual achievement as compared to the target performance goals. Shares earned based on actual performance vest pro-rata over a four-year period (provided the recipients continue to be employed by us as specified in the award document) or cliff-vest at the end of a three-year performance period. The value of the Performance-Based RSUs was determined to be equal to the estimated number of shares of our common stock to be issued multiplied by the closing price of our common stock on the New York Stock Exchange (“NYSE”) on the date the Performance-Based RSUs were approved by the Executive Compensation Committee (“Valuation Date”), adjusted for post-vesting restrictions applicable to retirement eligible participants. Compensation expense related to these grants is based on the Company’s performance against the related performance criteria, the elapsed portion of the performance period and the grant date fair value of the award. To estimate the fair value of the award, we evaluate the performance goals quarterly and estimate the number of shares underlying the Performance-Based RSUs that are probable of being issued. A summary of the status of our nonvested Performance-Based RSUs as of October 31, 2023, and changes during the year ended October 31, 2023, is presented below:
| Number of shares (in thousands) |  | Weighted-average grant date fair value
Nonvested at November 1, 2022 | 280 |  |  | $ | 39.79 |
Granted | 126 |  |  | $ | 39.44 |
Vested | (153) |  |  | $ | 36.53 |
Nonvested at October 31, 2023 | 253 |  |  | $ | 41.60 |
The following table provides information regarding the issuance, valuation assumptions, and amortization of the Performance-Based RSUs issued in fiscal 2023, 2022, and 2021:
| 2023 |  | 2022 |  | 2021
Estimated number of shares underlying Performance-Based RSUs to be issued | 126,068 |  |  | 71,576 |  |  | 128,894 |
Aggregate number of Performance-Based RSUs outstanding at October 31 | 442,961 |  |  | 507,604 |  |  | 539,592 |
Weighted-average fair value per share of Performance-Based RSUs issued | $ | 34.70 |  |  | $ | 45.41 |  |  | $ | 29.87 |
Aggregate grant date fair value of Performance-Based RSUs issued (in thousands) | $ | 7,244 |  |  | $ | 6,156 |  |  | $ | 5,030 |
Performance-Based RSUs expense recognized (in thousands) | $ | 5,838 |  |  | $ | 4,346 |  |  | $ | 5,989 |
Fair market value of Performance-Based RSUs vested (in thousands) | $ | 5,595 |  |  | $ | 4,514 |  |  | $ | 5,084 |
Shares earned with respect to Performance-Based RSUs granted in December 2016, 2017, and 2018 were delivered in fiscal 2021, 2022, and 2023, respectively. Time-Based Restricted Stock Units: We issue time-based restricted stock units (“Time-Based RSUs”) to various officers, employees, and non-employee directors on an annual basis. These Time-Based RSUs generally vest in annual installments over a two-year (for non-employee directors) or four-year (for employees) period and are generally settled at the end of such period. The value of the Time-Based RSUs are determined to be equal to the number of shares of our common stock underlying the Time-Based RSUs multiplied by the closing price of our common stock on the NYSE on the date the Time-Based RSUs are awarded, adjusted for post-vesting restrictions applicable to retirement eligible participants. The fair value of Time-Based RSUs is expensed evenly over the shorter of the vesting period or the period between the grant date and the time the award becomes nonforfeitable to the participant. 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:
| Number of shares (in thousands) |  | Weighted-average grant date fair value
Nonvested at November 1, 2022 | 842 |  |  | $ | 47.18 |
Granted | 549 |  |  | $ | 51.65 |
Vested | (336) |  |  | $ | 43.44 |
Forfeited | (40) |  |  | $ | 52.28 |
Nonvested at October 31, 2023 | 1,015 |  |  | $ | 50.64 |
The following table provides additional information on the Time-Based RSUs for fiscal 2023, 2022, and 2021:
| 2023 |  | 2022 |  | 2021
Time-Based RSUs issued: |  |  |  |  |
Number of Time-Based RSUs issued | 324,399 |  |  | 276,421 |  |  | 386,017 |
Weighted-average fair value per share of Time-Based RSUs issued | $ | 34.26 |  |  | $ | 45.55 |  |  | $ | 33.21 |
Aggregate fair value of Time-Based RSUs issued (in thousands) | $ | 11,114 |  |  | $ | 12,591 |  |  | $ | 12,820 |
Time-Based RSUs expense recognized (in thousands): | $ | 18,340 |  |  | $ | 15,738 |  |  | $ | 14,531 |
Fair market value of Time-Based RSUs vested (in thousands): | $ | 14,592 |  |  | $ | 13,925 |  |  | $ | 14,029 |
| 2023 |  | 2022 |  | 2021
At October 31: |  |  |  |  |
Aggregate number of Time-Based RSUs outstanding | 1,500,097 |  |  | 1,315,303 |  |  | 1,312,710 |
Cumulative unamortized value of Time-Based RSUs (in thousands) | $ | 22,836 |  |  | $ | 14,902 |  |  | $ | 12,919 |

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