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 April 30, 2016:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		291,821	131,357	—		423,178
Restricted cash and investments	15,228					13,669			28,897
Inventory					6,860,713	424,638			7,285,351
Property, construction and office equipment, net					120,597	16,151			136,748
Receivables, prepaid expenses and other assets	98				182,880	142,522	(54,363	)	271,137
Mortgage loans held for sale						124,677			124,677
Customer deposits held in escrow					63,432	4,206			67,638
Investments in unconsolidated entities					102,640	321,628			424,268
Investments in foreclosed real estate and distressed loans						14,576			14,576
Investments in and advances to consolidated entities	4,037,451		2,738,380		4,740		(6,780,571	)	—
Deferred tax assets, net of valuation allowances	187,755								187,755
	4,240,532		2,738,380		7,626,823	1,193,424	(6,834,934	)	8,964,225
LIABILITIES AND EQUITY
Liabilities
Loans payable					711,293				711,293
Senior notes			2,676,778				15,283		2,692,061
Mortgage company loan facility						100,000			100,000
Customer deposits					318,293	9,965			328,258
Accounts payable					279,987	1,087			281,074
Accrued expenses			33,595		371,576	255,928	(55,901	)	605,198
Advances from consolidated entities					1,833,805	713,316	(2,547,121	)	—
Income taxes payable	81,393								81,393
Total liabilities	81,393		2,710,373		3,514,954	1,080,296	(2,587,739	)	4,799,277
Equity
Stockholders’ equity
Common stock	1,779				48	3,006	(3,054	)	1,779
Additional paid-in capital	718,013		49,400			1,734	(51,134	)	718,013
Retained earnings (deficits)	3,757,436		(21,393	)	4,111,821	102,579	(4,193,007	)	3,757,436
Treasury stock, at cost	(315,479	)							(315,479	)
Accumulated other comprehensive loss	(2,610	)							(2,610	)
Total stockholders’ equity	4,159,139		28,007		4,111,869	107,319	(4,247,195	)	4,159,139
Noncontrolling interest						5,809			5,809
Total equity	4,159,139		28,007		4,111,869	113,128	(4,247,195	)	4,164,948
	4,240,532		2,738,380		7,626,823	1,193,424	(6,834,934	)	8,964,225

Condensed Consolidating Balance Sheet at October 31, 2015:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		783,599		135,394	—		918,993
Marketable securities							10,001			10,001
Restricted cash and investments	15,227				499		1,069			16,795
Inventory					6,530,698		466,818			6,997,516
Property, construction and office equipment, net					121,178		15,577			136,755
Receivables, prepaid expenses and other assets	52				149,268		178,680	(43,870	)	284,130
Mortgage loans held for sale							123,175			123,175
Customer deposits held in escrow					51,767		4,338			56,105
Investments in unconsolidated entities					115,999		296,861			412,860
Investments in foreclosed real estate and distressed loans							51,730			51,730
Investments in and advances to consolidated entities	4,067,722		2,726,428		4,740			(6,798,890	)	—
Deferred tax assets, net of valuation allowances	198,455									198,455
	4,281,456		2,726,428		7,757,748		1,283,643	(6,842,760	)	9,206,515
LIABILITIES AND EQUITY
Liabilities
Loans payable					1,000,439					1,000,439
Senior notes			2,669,860					19,941		2,689,801
Mortgage company loan facility							100,000			100,000
Customer deposits					271,124		13,185			284,309
Accounts payable					236,436		517			236,953
Accrued expenses			25,699		361,089		266,411	(45,133	)	608,066
Advances from consolidated entities					1,932,075		850,374	(2,782,449	)	—
Income taxes payable	58,868									58,868
Total liabilities	58,868		2,695,559		3,801,163		1,230,487	(2,807,641	)	4,978,436
Equity
Stockholders’ equity
Common stock	1,779				48		3,006	(3,054	)	1,779
Additional paid-in capital	728,125		49,400				1,734	(51,134	)	728,125
Retained earnings (deficits)	3,595,202		(18,531	)	3,956,568		42,894	(3,980,931	)	3,595,202
Treasury stock, at cost	(100,040	)								(100,040	)
Accumulated other comprehensive loss	(2,478	)			(31	)				(2,509	)
Total stockholders’ equity	4,222,588		30,869		3,956,585		47,634	(4,035,119	)	4,222,557
Noncontrolling interest							5,522			5,522
Total equity	4,222,588		30,869		3,956,585		53,156	(4,035,119	)	4,228,079
	4,281,456		2,726,428		7,757,748		1,283,643	(6,842,760	)	9,206,515

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the six months ended April 30, 2016:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					1,874,962	225,750		(56,589	)	2,044,123
Cost of revenues					1,478,061	110,867		(6,046	)	1,582,882
Selling, general and administrative	22		1,920		260,530	35,201		(47,537	)	250,136
	22		1,920		1,738,591	146,068		(53,583	)	1,833,018
Income (loss) from operations	(22	)	(1,920	)	136,371	79,682		(3,006	)	211,105
Other:
Income from unconsolidated entities					10,333	7,423				17,756
Other income – net	4,711				13,395	10,539		(292	)	28,353
Intercompany interest income			72,977					(72,977	)	—
Interest expense			(75,714	)		(563	)	76,277		—
Income from subsidiaries	252,525				92,425			(344,950	)	—
Income (loss) before income taxes	257,214		(4,657	)	252,524	97,081		(344,948	)	257,214
Income tax provision (benefit)	94,980		(1,794	)	97,272	37,396		(132,874	)	94,980
Net income (loss)	162,234		(2,863	)	155,252	59,685		(212,074	)	162,234
Other comprehensive (loss) income	(132	)			31					(101	)
Total comprehensive income (loss)	162,102		(2,863	)	155,283	59,685		(212,074	)	162,133

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the six months ended April 30, 2015:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					1,724,050		33,152		(51,167	)	1,706,035
Cost of revenues					1,332,727		3,095		(7,278	)	1,328,544
Selling, general and administrative	37		1,822		226,194		27,090		(41,144	)	213,999
	37		1,822		1,558,921		30,185		(48,422	)	1,542,543
Income (loss) from operations	(37	)	(1,822	)	165,129		2,967		(2,745	)	163,492
Other:
Income from unconsolidated entities					7,434		3,694				11,128
Other income – net	4,670				18,033		13,588		(356	)	35,935
Intercompany interest income			72,393						(72,393	)	—
Interest expense			(75,228	)			(266	)	75,494		—
Income from subsidiaries	205,922				15,326				(221,248	)	—
Income (loss) before income taxes	210,555		(4,657	)	205,922		19,983		(221,248	)	210,555
Income tax provision (benefit)	61,300		(1,762	)	77,900		7,559		(83,697	)	61,300
Net income (loss)	149,255		(2,895	)	128,022		12,424		(137,551	)	149,255
Other comprehensive loss	(201	)			(12	)					(213	)
Total comprehensive income (loss)	149,054		(2,895	)	128,010		12,424		(137,551	)	149,042

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three months ended April 30, 2016:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					1,090,366	55,527		(30,336	)	1,115,557
Cost of revenues					853,260	20,780		(3,469	)	870,571
Selling, general and administrative	10		951		134,625	17,228		(24,474	)	128,340
	10		951		987,885	38,008		(27,943	)	998,911
Income (loss) from operations	(10	)	(951	)	102,481	17,519		(2,393	)	116,646
Other:
Income from unconsolidated entities					7,336	1,782				9,118
Other income – net	2,320				5,226	6,346		741		14,633
Intercompany interest income			36,480					(36,480	)	—
Interest expense			(37,819	)		(315	)	38,134		—
Income from subsidiaries	138,087				23,043			(161,130	)	—
Income (loss) before income taxes	140,397		(2,290	)	138,086	25,332		(161,128	)	140,397
Income tax provision (benefit)	51,343		(882	)	53,168	9,744		(62,030	)	51,343
Net income (loss)	89,054		(1,408	)	84,918	15,588		(99,098	)	89,054
Other comprehensive loss	155				4					159
Total comprehensive income (loss)	89,209		(1,408	)	84,922	15,588		(99,098	)	89,213

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three months ended April 30, 2015:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					861,896		17,550		(26,863	)	852,583
Cost of revenues					680,515		1,429		(3,432	)	678,512
Selling, general and administrative	23		914		114,151		13,701		(21,104	)	107,685
	23		914		794,666		15,130		(24,536	)	786,197
Income (loss) from operations	(23	)	(914	)	67,230		2,420		(2,327	)	66,386
Other:
Income from unconsolidated entities					2,712		3,515				6,227
Other income – net	2,300				7,800		3,003		816		13,919
Intercompany interest income			36,200						(36,200	)	—
Interest expense			(37,576	)			(135	)	37,711		—
Income from subsidiaries	84,255				6,513				(90,768	)	—
Income (loss) before income taxes	86,532		(2,290	)	84,255		8,803		(90,768	)	86,532
Income tax provision (benefit)	18,602		(871	)	32,093		3,349		(34,571	)	18,602
Net income (loss)	67,930		(1,419	)	52,162		5,454		(56,197	)	67,930
Other comprehensive income (loss)	(23	)			(7	)					(30	)
Total comprehensive income (loss)	67,907		(1,419	)	52,155		5,454		(56,197	)	67,900

Condensed Consolidating Statement of Cash Flows for the six months ended April 30, 2016:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash (used in) provided by operating activities	45,565		11,996		(166,251	)	104,238		(11,428	)	(15,880	)
Cash flow provided by (used in) investing activities:
Purchase of property and equipment - net					(6,626	)	(698	)			(7,324	)
Sale and redemption of marketable securities							10,000				10,000
Investment in unconsolidated entities					(1,763	)	(19,620	)			(21,383	)
Return of investments in unconsolidated entities					22,236		6,242				28,478
Investment in foreclosed real estate and distressed loans							(866	)			(866	)
Return of investments in foreclosed real estate and distressed loans							33,435				33,435
Dividend received - intercompany					5,000				(5,000	)	—
Intercompany advances	179,030		(11,953	)					(167,077	)	—
Net cash provided by (used in) investing activities	179,030		(11,953	)	18,847		28,493		(172,077	)	42,340
Cash flow used in financing activities:
Debt issuance costs for senior notes			(43	)							(43	)
Proceeds from loans payable					100,000		721,984				821,984
Principal payments of loans payable					(397,927	)	(721,984	)			(1,119,911	)
Proceeds from stock-based benefit plans	5,003										5,003
Excess tax benefits from stock-based compensation	665										665
Purchase of treasury stock	(230,263	)									(230,263	)
Receipts related to noncontrolling interest, net							290				290
Dividend paid - intercompany							(5,000	)	5,000		—
Intercompany advances					(46,447	)	(132,058	)	178,505		—
Net cash used in financing activities	(224,595	)	(43	)	(344,374	)	(136,768	)	183,505		(522,275	)
Net decrease in cash and cash equivalents	—		—		(491,778	)	(4,037	)	—		(495,815	)
Cash and cash equivalents, beginning of period	—		—		783,599		135,394		—		918,993
Cash and cash equivalents, end of period	—		—		291,821		131,357		—		423,178

Condensed Consolidating Statement of Cash Flows for the six months ended April 30, 2015:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash (used in) provided by operating activities	(48,714	)	4,290		15,173		(2,631	)	(6,060	)	(37,942	)
Cash flow (used in) provided by investing activities:
Purchase of property and equipment — net					(5,037	)	(847	)			(5,884	)
Sale and redemption of marketable securities					2,000						2,000
Investments in unconsolidated entities					(2,253	)	(25,452	)			(27,705	)
Return of investments in unconsolidated entities					5,797		4,840				10,637
Investment in foreclosed real estate and distressed loans							(1,697	)			(1,697	)
Return of investments in foreclosed real estate and distressed loans							14,592				14,592
Net increase in cash from purchase of joint venture interest					3,848						3,848
Intercompany advances	18,228		(4,290	)					(13,938	)	—
Net cash (used in) provided by investing activities	18,228		(4,290	)	4,355		(8,564	)	(13,938	)	(4,209	)
Cash flow (used in) provided by financing activities:
Proceeds from loans payable							529,053				529,053
Principal payments of loans payable					(22,556	)	(550,282	)			(572,838	)
Proceeds from stock-based benefit plans	34,057										34,057
Excess tax benefits from stock-based compensation	3,045										3,045
Purchase of treasury stock	(6,616	)									(6,616	)
Receipts related to noncontrolling interest							1,292				1,292
Intercompany advances					(63,450	)	43,452		19,998		—
Net cash (used in) provided by financing activities	30,486		—		(86,006	)	23,515		19,998		(12,007	)
Net (decrease) increase in cash and cash equivalents	—		—		(66,478	)	12,320		—		(54,158	)
Cash and cash equivalents, beginning of period	—		—		455,714		130,601		—		586,315
Cash and cash equivalents, end of period	—		—		389,236		142,921		—		532,157