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Published: 2020-12-07 16:52:10 ET
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EX-99.1 2 tol-dec2020commreclass.htm EX-99.1 Document

EXHIBIT 99.1

The purpose of this schedule is to provide investors with historical information that has been recast to reflect the Company's reclassification of sales commissions paid to third-party brokers from home sales cost of revenues to selling, general and administrative expense ("SG&A") in its Consolidated Statements of Operations and Comprehensive Income. The reclassification aligns the treatment of sale commissions paid to third-party brokers with the treatment of sales commissions paid to in-house salespersons, and is consistent with the manner in which the majority of the Company's peers treat such commissions. The reclassification had the effect of lowering home sales cost of revenues (and increasing homes sales gross margin) and increasing SG&A by the amount of sale commissions paid to third-party brokers. The tables provide unaudited recast information, on a consolidated basis and for each segment, for the previously reported years ended October 31, 2019 and October 31, 2018; the three month periods ended January 31, April 30, July 31 and October 31 of each fiscal 2019 and 2018; and the three month periods ended January 31, April 30, and July 31 of fiscal 2020 ($ in millions).

Consolidated:
Fiscal 2020Fiscal 2019Fiscal 2018
Q1Q2Q3Q4FYQ1Q2Q3Q4FYQ1Q2Q3Q4FY
Cost of home sales revenue:
As previously reported$1,059.9 $1,250.7 $1,318.9 $1,042.2 $1,374.3 $1,401.8 $1,860.6 $5,678.9 $934.5 $1,298.2 $1,509.6 $1,930.8 $5,673.0 
Less: Third-party broker commissions reclassed26.8 29.7 32.8 $49.3 $138.6 26.0 35.5 36.4 46.8 144.7 23.2 28.6 37.0 47.4 136.2 
As restated$1,033.1 $1,221.0 $1,286.1 $1,993.9 $5,534.1 $1,016.2 $1,338.9 $1,365.3 $1,813.8 $5,534.2 $911.2 $1,269.6 $1,472.7 $1,883.3 $5,536.8 
Third-party broker comm as % of revenues2.1%2.0%2.0%2.0%2.0%2.0%2.1%2.1%2.0%2.0%2.0%1.8%1.9%1.9%1.9%
SG&A:
As previously reported$191.8 $179.4 $160.6 $162.2 $178.4 $186.7 $207.2 $734.5 $157.3 $166.7 $174.1 $186.0 $684.0 
As restated$218.5 $209.1 $193.5 $246.3 $867.4 $188.2 $213.8 $223.1 $254.0 $879.2 $180.5 $195.3 $211.0 $233.4 $820.2 



Home Sales Cost of Revenues as a Percentage of Home Sales Revenues by Segment:
Fiscal 2020Fiscal 2019Fiscal 2018
Q1Q2Q3Q4FYQ1Q2Q3Q4FYQ1Q2Q3Q4FY
North
As previously reported86.8 %85.3 %87.0 %83.7 %89.5 %84.3 %86.7 %86.2 %86.4 %88.9 %85.0 %84.8 %86.0 %
As restated85.4 %84.0 %85.8 %88.3 %86.3 %82.5 %88.2 %82.9 %85.3 %84.9 %85.3 %87.8 %83.8 %83.8 %85.0 %
Mid-Atlantic
As previously reported84.5 %91.7 %85.5 %83.9 %85.7 %86.8 %85.7 %85.7 %82.5 %84.3 %86.1 %84.3 %84.5 %
As restated82.3 %89.2 %83.1 %81.0 %83.6 %81.6 %83.3 %84.4 %83.5 %83.4 %80.1 %82.1 %83.9 %81.8 %82.2 %
South
As previously reported84.7 %82.9 %81.3 %84.1 %82.7 %83.4 %83.4 %83.4 %85.1 %82.2 %81.3 %82.9 %82.7 %
As restated82.3 %80.6 %79.1 %78.9 %79.9 %81.8 %80.3 %81.1 %81.1 %81.1 %83.2 %80.1 %79.2 %80.6 %80.5 %
Mountain
As previously reported81.6 %81.4 %80.5 %78.8 %81.1 %79.8 %82.5 %80.7 %80.4 %81.0 %79.9 %80.1 %80.3 %
As restated79.5 %79.7 %78.8 %79.1 %79.2 %77.0 %79.1 %78.0 %80.7 %78.9 %78.7 %79.3 %78.1 %78.4 %78.6 %
Pacific
As previously reported77.0 %78.5 %75.6 %73.2 %73.7 %73.7 %75.0 %74.0 %72.6 %74.2 %72.0 %72.4 %72.7 %
As restated74.8 %76.3 %73.1 %75.9 %75.2 %71.0 %71.4 %71.5 %72.6 %71.7 %70.4 %72.1 %69.8 %70.1 %70.5 %
City Living
As previously reported69.0 %62.6 %64.0 %76.1 %65.6 %70.6 %72.1 %70.6 %73.2 %81.1 %73.3 %71.9 %75.2 %
As restated66.9 %60.8 %62.1 %51.2 %61.7 %73.7 %63.1 %67.0 %69.4 %67.8 %70.5 %79.5 %70.3 %69.1 %72.7 %