Supplemental consolidating financial information of Toll Brothers, Inc., the Subsidiary Issuer, the Guarantor Subsidiaries, the Nonguarantor Subsidiaries, and the eliminations to arrive at Toll Brothers, Inc. on a consolidated basis is presented below ($ amounts in thousands).

Condensed Consolidating Balance Sheet at July 31, 2015:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		264,661		130,147	—		394,808
Marketable securities							10,008			10,008
Restricted cash	15,176				1,295		1,449			17,920
Inventory					6,514,285		476,593			6,990,878
Property, construction and office equipment, net					122,704		15,893			138,597
Receivables, prepaid expenses and other assets	96		14,165		172,371		124,971	(35,844	)	275,759
Mortgage loans held for sale							127,405			127,405
Customer deposits held in escrow					46,748		1,548			48,296
Investments in unconsolidated entities					117,890		217,035			334,925
Investments in foreclosed real estate and distressed loans							59,459			59,459
Investments in and advances to consolidated entities	3,933,234		2,385,178		4,740			(6,323,152	)	—
Deferred tax assets, net of valuation allowances	232,840									232,840
	4,181,346		2,399,343		7,244,694		1,164,508	(6,358,996	)	8,630,895
LIABILITIES AND EQUITY
Liabilities
Loans payable					866,876					866,876
Senior notes			2,333,761					22,307		2,356,068
Mortgage company loan facility							100,000			100,000
Customer deposits					287,588		12,023			299,611
Accounts payable					242,439		331			242,770
Accrued expenses			33,316		366,699		217,141	(37,888	)	579,268
Advances from consolidated entities					1,654,104		786,914	(2,441,018	)	—
Income taxes payable	60,316									60,316
Total liabilities	60,316		2,367,077		3,417,706		1,116,409	(2,456,599	)	4,504,909
Equity
Stockholders’ equity
Common stock	1,779				48		3,006	(3,054	)	1,779
Additional paid-in capital	728,501		49,400				1,734	(51,134	)	728,501
Retained earnings (deficits)	3,448,039		(17,134	)	3,826,989		38,354	(3,848,209	)	3,448,039
Treasury stock, at cost	(54,438	)								(54,438	)
Accumulated other comprehensive loss	(2,851	)			(49	)				(2,900	)
Total stockholders’ equity	4,121,030		32,266		3,826,988		43,094	(3,902,397	)	4,120,981
Noncontrolling interest							5,005			5,005
Total equity	4,121,030		32,266		3,826,988		48,099	(3,902,397	)	4,125,986
	4,181,346		2,399,343		7,244,694		1,164,508	(6,358,996	)	8,630,895

Condensed Consolidating Balance Sheet at October 31, 2014:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		455,714		130,601	—		586,315
Marketable securities					1,997		10,029			12,026
Restricted cash	15,211				2,070		1,061			18,342
Inventory					6,260,303		230,018			6,490,321
Property, construction and office equipment, net					126,586		16,424			143,010
Receivables, prepaid expenses and other assets			16,802		114,863		137,496	(17,589	)	251,572
Mortgage loans held for sale							101,944			101,944
Customer deposits held in escrow					39,912		2,161			42,073
Investments in unconsolidated entities					132,096		314,982			447,078
Investments in foreclosed real estate and distressed loans							73,800			73,800
Investments in and advances to consolidated entities	3,714,788		2,677,448		4,740			(6,396,976	)	—
Deferred tax assets, net of valuation allowances	250,421									250,421
	3,980,420		2,694,250		7,138,281		1,018,516	(6,414,565	)	8,416,902
LIABILITIES AND EQUITY
Liabilities
Loans payable					653,269		992			654,261
Senior notes			2,625,712					29,332		2,655,044
Mortgage company loan facility							90,281			90,281
Customer deposits					221,084		2,715			223,799
Accounts payable					225,106		241			225,347
Accrued expenses			31,906		386,223		181,649	(18,301	)	581,477
Advances from consolidated entities					2,018,981		708,167	(2,727,148	)	—
Income taxes payable	125,996									125,996
Total liabilities	125,996		2,657,618		3,504,663		984,045	(2,716,117	)	4,556,205
Equity
Stockholders’ equity
Common stock	1,779				48		3,006	(3,054	)	1,779
Additional paid-in capital	712,162		49,400				1,734	(51,134	)	712,162
Retained earnings (deficits)	3,232,035		(12,768	)	3,633,618		23,410	(3,644,260	)	3,232,035
Treasury stock, at cost	(88,762	)								(88,762	)
Accumulated other comprehensive loss	(2,790	)			(48	)				(2,838	)
Total stockholders’ equity	3,854,424		36,632		3,633,618		28,150	(3,698,448	)	3,854,376
Noncontrolling interest							6,321			6,321
Total equity	3,854,424		36,632		3,633,618		34,471	(3,698,448	)	3,860,697
	3,980,420		2,694,250		7,138,281		1,018,516	(6,414,565	)	8,416,902

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the nine months ended July 31, 2015:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					2,764,788	53,963		(84,705	)	2,734,046
Cost of revenues					2,158,932	6,933		(12,927	)	2,152,938
Selling, general and administrative	66		2,689		349,861	43,827		(66,269	)	330,174
	66		2,689		2,508,793	50,760		(79,196	)	2,483,112
Income (loss) from operations	(66	)	(2,689	)	255,995	3,203		(5,509	)	250,934
Other:
Income from unconsolidated entities					11,332	5,748				17,080
Other income – net	7,049				26,697	15,672		587		50,005
Intercompany interest income			105,134					(105,134	)	—
Interest expense			(109,469	)		(587	)	110,056		—
Income from subsidiaries	311,036				17,012			(328,048	)	—
Income (loss) before income taxes	318,019		(7,024	)	311,036	24,036		(328,048	)	318,019
Income tax provision (benefit)	102,015		(2,657	)	117,665	9,092		(124,100	)	102,015
Net income (loss)	216,004		(4,367	)	193,371	14,944		(203,948	)	216,004
Other comprehensive loss	(62	)								(62	)
Total comprehensive income (loss)	215,942		(4,367	)	193,371	14,944		(203,948	)	215,942

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the nine months ended July 31, 2014:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					2,587,940	53,075		(80,103	)	2,560,912
Cost of revenues					2,029,097	6,809		(16,644	)	2,019,262
Selling, general and administrative	98		2,762		330,591	40,898		(62,178	)	312,171
	98		2,762		2,359,688	47,707		(78,822	)	2,331,433
Income (loss) from operations	(98	)	(2,762	)	228,252	5,368		(1,281	)	229,479
Other:
Income (loss) from unconsolidated entities					38,271	(79	)			38,192
Other income – net	7,033				31,632	13,427		(3,719	)	48,373
Intercompany interest income			111,984					(111,984	)	—
Interest expense			(116,246	)		(738	)	116,984		—
Income from subsidiaries	309,109				10,954			(320,063	)	—
Income (loss) before income taxes	316,044		(7,024	)	309,109	17,978		(320,063	)	316,044
Income tax provision (benefit)	107,536		(2,631	)	115,792	6,734		(119,895	)	107,536
Net income (loss)	208,508		(4,393	)	193,317	11,244		(200,168	)	208,508
Other comprehensive income	153				170	14				337
Total comprehensive income (loss)	208,661		(4,393	)	193,487	11,258		(200,168	)	208,845

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three months ended July 31, 2015:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					1,040,738	20,811		(33,538	)	1,028,011
Cost of revenues					826,205	3,838		(5,649	)	824,394
Selling, general and administrative	29		867		123,667	16,737		(25,125	)	116,175
	29		867		949,872	20,575		(30,774	)	940,569
Income (loss) from operations	(29	)	(867	)	90,866	236		(2,764	)	87,442
Other:
Income from unconsolidated entities					3,898	2,054				5,952
Other income – net	2,379				8,664	2,084		943		14,070
Intercompany interest income			32,741					(32,741	)	—
Interest expense			(34,241	)		(321	)	34,562		—
Income from subsidiaries	105,114				1,686			(106,800	)	—
Income (loss) before income taxes	107,464		(2,367	)	105,114	4,053		(106,800	)	107,464
Income tax provision (benefit)	40,715		(895	)	39,765	1,533		(40,403	)	40,715
Net income (loss)	66,749		(1,472	)	65,349	2,520		(66,397	)	66,749
Other comprehensive loss	139				12					151
Total comprehensive income (loss)	66,888		(1,472	)	65,361	2,520		(66,397	)	66,900

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three months ended July 31, 2014:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					1,067,863		19,808		(30,814	)	1,056,857
Cost of revenues					822,804		2,750		(8,322	)	817,232
Selling, general and administrative	29		897		116,944		14,462		(22,351	)	109,981
	29		897		939,748		17,212		(30,673	)	927,213
Income (loss) from operations	(29	)	(897	)	128,115		2,596		(141	)	129,644
Other:
Income from unconsolidated entities					693		257				950
Other income – net	2,373				13,817		6,219		(1,678	)	20,731
Intercompany interest income			35,877						(35,877	)	—
Interest expense			(37,347	)			(349	)	37,696		—
Income from subsidiaries	148,981				6,356				(155,337	)	—
Income (loss) before income taxes	151,325		(2,367	)	148,981		8,723		(155,337	)	151,325
Income tax provision (benefit)	53,618		(880	)	55,568		3,253		(57,941	)	53,618
Net income (loss)	97,707		(1,487	)	93,413		5,470		(97,396	)	97,707
Other comprehensive income (loss)	(3	)			(19	)	2				(20	)
Total comprehensive income (loss)	97,704		(1,487	)	93,394		5,472		(97,396	)	97,687

Condensed Consolidating Statement of Cash Flows for the nine months ended July 31, 2015:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash (used in) provided by operating activities	(7,795	)	7,730		(17,570	)	(85,025	)	(8,591	)	(111,251	)
Cash flow (used in) provided by investing activities:
Purchase of property and equipment - net					(5,954	)	(1,291	)			(7,245	)
Sale and redemption of marketable securities					2,000						2,000
Investment in and advances to unconsolidated entities					(3,172	)	(36,109	)			(39,281	)
Return of investments in unconsolidated entities					20,261		14,542				34,803
Investment in foreclosed real estate and distressed loans							(2,096	)			(2,096	)
Return of investments in foreclose real estate and distressed loans							23,372				23,372
Net increase in cash from purchase of joint venture interest					3,848						3,848
Intercompany advances	(25,308	)	292,270						(266,962	)	—
Net cash (used in) provided by investing activities	(25,308	)	292,270		16,983		(1,582	)	(266,962	)	15,401
Cash flow (used in) provided by financing activities:
Proceeds from loans payable					250,000		966,094				1,216,094
Principal payments of loans payable					(86,166	)	(957,376	)			(1,043,542	)
Redemption of senior notes			(300,000	)							(300,000	)
Proceeds from stock-based benefit plans	35,246										35,246
Excess tax benefits from stock-based compensation	4,603										4,603
Purchase of treasury stock	(6,746	)									(6,746	)
(Payments) receipts related to noncontrolling interest, net							(1,312	)			(1,312	)
Intercompany advances					(354,300	)	78,747		275,553		—
Net cash (used in) provided by financing activities	33,103		(300,000	)	(190,466	)	86,153		275,553		(95,657	)
Net (decrease) increase in cash and cash equivalents	—		—		(191,053	)	(454	)	—		(191,507	)
Cash and cash equivalents, beginning of period	—		—		455,714		130,601		—		586,315
Cash and cash equivalents, end of period	—		—		264,661		130,147		—		394,808

Condensed Consolidating Statement of Cash Flows for the nine months ended July 31, 2014:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash (used in) provided by operating activities	101,864		18,079		(4,242	)	(64,371	)	(12,714	)	38,616
Cash flow (used in) provided by investing activities:
Purchase of property and equipment — net					(9,145	)	(355	)			(9,500	)
Sale and redemption of marketable securities					40,243						40,243
Investment in and advances to unconsolidated entities					(15,604	)	(77,435	)			(93,039	)
Return of investments in unconsolidated entities					40,413		10,264				50,677
Investment in foreclosed real estate and distressed loans							(1,127	)			(1,127	)
Return of investments in foreclose real estate and distressed loans							40,675				40,675
Acquisition of a business, net of cash acquired					(1,489,116	)					(1,489,116	)
Dividend received – intercompany					15,000				(15,000	)	—
Intercompany advances	(348,664	)	(345,419	)					694,083		—
Net cash used in investing activities	(348,664	)	(345,419	)	(1,418,209	)	(27,978	)	679,083		(1,461,187	)
Cash flow provided by (used in) financing activities:
Proceeds from issuance of senior notes			600,000								600,000
Debt issuance costs for senior notes			(4,700	)							(4,700	)
Proceeds from loans payable					1,141,300		729,580				1,870,880
Debt issuance costs for loans payable					(3,005	)					(3,005	)
Principal payments of loans payable					(701,098	)	(716,750	)			(1,417,848	)
Redemption of senior notes			(267,960	)							(267,960	)
Net proceeds from issuance of common stock	220,365										220,365
Proceeds from stock-based benefit plans	26,555										26,555
Excess tax benefits from stock-based compensation	221										221
Purchase of treasury stock	(341	)									(341	)
Receipts related to noncontrolling interest							81				81
Dividend paid – intercompany							(15,000	)	15,000		—
Intercompany advances					569,662		111,707		(681,369	)	—
Net cash provided by financing activities	246,800		327,340		1,006,859		109,618		(666,369	)	1,024,248
Net (decrease) increase in cash and cash equivalents	—		—		(415,592	)	17,269		—		(398,323	)
Cash and cash equivalents, beginning of period	—		—		670,102		102,870		—		772,972
Cash and cash equivalents, end of period	—		—		254,510		120,139		—		374,649