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Stock-Based Benefit Plans | 12 Months Ended
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Oct. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Stock-Based Benefit Plans | Stock-Based Benefit Plans We grant various types of restricted stock units to our employees and our non-employee directors under our stock incentive plans. 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). 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 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 prior to fiscal 2024, a two-year period for non-employee directors. 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. At October 31, 2024, 2023, and 2022, we had 3.2 million; 3.7 million; and 5.0 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 2024, 2023, and 2022 (amounts in thousands):
| 2024 |  | 2023 |  | 2022
Total stock-based compensation expense recognized | $ | 29,558 |  |  | $ | 24,805 |  |  | $ | 21,095 |
Income tax benefit recognized | $ | 7,555 |  |  | $ | 6,291 |  |  | $ | 5,312 |
At October 31, 2024, the aggregate unamortized value of outstanding stock-based compensation awards was approximately $21.8 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 2024, 2023, and 2022, 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 measured from the grant date. 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:
| Number of shares (in thousands) |  | Weighted-average grant date fair value
Nonvested at November 1, 2023 | 253 |  |  | $ | 41.60 |
Granted | 67 |  |  | $ | 82.97 |
Vested | (114) |  |  | $ | 42.70 |
Nonvested at October 31, 2024 | 206 |  |  | $ | 54.51 |
The following table provides information regarding the issuance, valuation assumptions, and amortization of the Performance-Based RSUs issued in fiscal 2024, 2023, and 2022:
| 2024 |  | 2023 |  | 2022
Estimated number of shares underlying Performance-Based RSUs to be issued | 67,499 |  |  | 126,068 |  |  | 71,576 |
Aggregate number of Performance-Based RSUs outstanding at October 31 | 346,630 |  |  | 442,961 |  |  | 507,604 |
Weighted-average fair value per share of Performance-Based RSUs issued | $ | 33.98 |  |  | $ | 34.70 |  |  | $ | 45.41 |
Aggregate grant date fair value of Performance-Based RSUs issued (in thousands) | $ | 5,795 |  |  | $ | 7,244 |  |  | $ | 6,156 |
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 |
Shares earned with respect to Performance-Based RSUs granted in December 2017, 2018, and 2019 were delivered in fiscal 2022, 2023, and 2024, 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. 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
Nonvested at November 1, 2023 | 1,015 |  |  | $ | 50.64 |
Granted | 240 |  |  | $ | 94.13 |
Vested | (374) |  |  | $ | 46.47 |
Forfeited | (22) |  |  | $ | 66.53 |
Nonvested at October 31, 2024 | 859 |  |  | $ | 64.20 |
The following table provides additional information on the Time-Based RSUs for fiscal 2024, 2023, and 2022:
| 2024 |  | 2023 |  | 2022
Time-Based RSUs issued: |  |  |  |  |
Number of Time-Based RSUs issued | 372,973 |  |  | 324,399 |  |  | 276,421 |
Weighted-average fair value per share of Time-Based RSUs issued | $ | 39.58 |  |  | $ | 34.26 |  |  | $ | 45.55 |
Aggregate fair value of Time-Based RSUs issued (in thousands) | $ | 14,761 |  |  | $ | 11,114 |  |  | $ | 12,591 |
Time-Based RSU expense recognized (in thousands): | $ | 22,365 |  |  | $ | 18,340 |  |  | $ | 15,738 |
Fair market value of Time-Based RSUs vested (in thousands): | $ | 17,378 |  |  | $ | 14,592 |  |  | $ | 13,925 |
| 2024 |  | 2023 |  | 2022
At October 31: |  |  |  |  |
Aggregate number of Time-Based RSUs outstanding | 1,344,851 |  |  | 1,500,097 |  |  | 1,315,303 |
Cumulative unamortized value of Time-Based RSUs (in thousands) | $ | 21,587 |  |  | $ | 22,836 |  |  | $ | 14,902 |

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