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 January 31, 2018:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		344,828	163,449	—		508,277
Restricted cash and investments					1,500	959			2,459
Inventory					7,487,983	225,813			7,713,796
Property, construction and office equipment, net					162,349	23,810			186,159
Receivables, prepaid expenses and other assets	1,064				320,275	327,295	(88,644	)	559,990
Mortgage loans held for sale						70,488			70,488
Customer deposits held in escrow					111,782	7,636			119,418
Investments in unconsolidated entities					53,953	395,795			449,748
Investments in and advances to consolidated entities	4,460,274		2,913,133		91,740	126,964	(7,592,111	)	—
Deferred tax assets, net of valuation allowances	7,564								7,564
	4,468,902		2,913,133		8,574,410	1,342,209	(7,680,755	)	9,617,899
LIABILITIES AND EQUITY
Liabilities
Loans payable					631,791				631,791
Senior notes			2,859,689						2,859,689
Mortgage company loan facility						38,344			38,344
Customer deposits					404,880	16,685			421,565
Accounts payable					284,423	2,969			287,392
Accrued expenses	9,908		35,603		521,213	444,437	(96,933	)	914,228
Advances from consolidated entities					1,731,178	607,425	(2,338,603	)	—
Total liabilities	9,908		2,895,292		3,573,485	1,109,860	(2,435,536	)	5,153,009
Equity
Stockholders’ equity
Common stock	1,779				48	3,006	(3,054	)	1,779
Additional paid-in capital	709,800		49,400			93,734	(143,134	)	709,800
Retained earnings (deficit)	4,595,233		(31,559	)	5,000,877	129,713	(5,099,031	)	4,595,233
Treasury stock, at cost	(845,668	)							(845,668	)
Accumulated other comprehensive loss	(2,150	)							(2,150	)
Total stockholders’ equity	4,458,994		17,841		5,000,925	226,453	(5,245,219	)	4,458,994
Noncontrolling interest						5,896			5,896
Total equity	4,458,994		17,841		5,000,925	232,349	(5,245,219	)	4,464,890
	4,468,902		2,913,133		8,574,410	1,342,209	(7,680,755	)	9,617,899

Condensed Consolidating Balance Sheet at October 31, 2017:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		533,204	179,625		—		712,829
Restricted cash and investments					1,500	982				2,482
Inventory					7,017,331	264,122				7,281,453
Property, construction and office equipment, net					165,464	24,083				189,547
Receivables, prepaid expenses and other assets					319,592	296,699		(74,074	)	542,217
Mortgage loans held for sale						132,922				132,922
Customer deposits held in escrow					96,956	5,061				102,017
Investments in unconsolidated entities					66,897	414,861				481,758
Investments in and advances to consolidated entities	4,589,228		2,514,649		91,740	126,799		(7,322,416	)	—
	4,589,228		2,514,649		8,292,684	1,445,154		(7,396,490	)	9,445,225
LIABILITIES AND EQUITY
Liabilities
Loans payable					637,416					637,416
Senior notes			2,462,463							2,462,463
Mortgage company loan facility						120,145				120,145
Customer deposits					377,083	18,943				396,026
Accounts payable					271,617	3,606				275,223
Accrued expenses	141		34,345		563,577	440,631		(79,341	)	959,353
Advances from consolidated entities					1,584,957	659,904		(2,244,861	)	—
Income taxes payable	57,893					(384	)			57,509
Total liabilities	58,034		2,496,808		3,434,650	1,242,845		(2,324,202	)	4,908,135
Equity
Stockholders’ equity
Common stock	1,779				48	3,006		(3,054	)	1,779
Additional paid-in capital	720,115		49,400			93,734		(143,134	)	720,115
Retained earnings (deficit)	4,474,064		(31,559	)	4,857,986	99,673		(4,926,100	)	4,474,064
Treasury stock, at cost	(662,854	)								(662,854	)
Accumulated other comprehensive loss	(1,910	)								(1,910	)
Total stockholders’ equity	4,531,194		17,841		4,858,034	196,413		(5,072,288	)	4,531,194
Noncontrolling interest						5,896				5,896
Total equity	4,531,194		17,841		4,858,034	202,309		(5,072,288	)	4,537,090
	4,589,228		2,514,649		8,292,684	1,445,154		(7,396,490	)	9,445,225

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three months ended January 31, 2018:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					1,115,354		104,114		(44,000	)	1,175,468
Cost of revenues					874,808		77,487		(17,815	)	934,480
Selling, general and administrative	18		840		162,079		20,173		(25,843	)	157,267
	18		840		1,036,887		97,660		(43,658	)	1,091,747
Income (loss) from operations	(18	)	(840	)	78,467		6,454		(342	)	83,721
Other:
Income from unconsolidated entities					5,132		33,748				38,880
Other income – net					5,885		1,044		2,068		8,997
Intercompany interest income			32,695				1,023		(33,718	)	—
Interest expense			(31,855	)	(1,023	)	(368	)	33,246		—
Income from subsidiaries	131,616				41,901				(173,517	)	—
Income before income taxes	131,598		—		130,362		41,901		(172,263	)	131,598
Income tax (benefit) provision	(509	)			(12,529	)	11,861		668		(509	)
Net income	132,107		—		142,891		30,040		(172,931	)	132,107
Other comprehensive income	171										171
Total comprehensive income	132,278		—		142,891		30,040		(172,931	)	132,278

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three months ended January 31, 2017:



	Toll Brothers, Inc.	Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues				915,823	45,696		(40,789	)	920,730
Cost of revenues				724,257	29,471		(20,726	)	733,002
Selling, general and administrative		968		143,881	16,948		(24,702	)	137,095
	—	968		868,138	46,419		(45,428	)	870,097
Income (loss) from operations	—	(968	)	47,685	(723	)	4,639		50,633
Other:
Income from unconsolidated entities				5,144	41,301				46,445
Other income – net	2,393			7,251	4,500		(1,441	)	12,703
Intercompany interest income		36,496					(36,496	)	—
Interest expense		(37,895	)		(663	)	38,558		—
Income from subsidiaries	107,388			42,048			(149,436	)	—
Income (loss) before income taxes	109,781	(2,367	)	102,128	44,415		(144,176	)	109,781
Income tax provision (benefit)	39,365	(849	)	36,621	15,926		(51,698	)	39,365
Net income (loss)	70,416	(1,518	)	65,507	28,489		(92,478	)	70,416
Other comprehensive income	169								169
Total comprehensive income (loss)	70,585	(1,518	)	65,507	28,489		(92,478	)	70,585

Condensed Consolidating Statement of Cash Flows for the three months ended January 31, 2018:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash (used in) provided by operating activities	(67,018	)	1,894		(361,168	)	99,370		(2,879	)	(329,801	)
Cash flow provided by (used in) investing activities:
Purchase of property and equipment - net					(741	)	(953	)			(1,694	)
Investment in unconsolidated entities					(1,158	)	(3,264	)			(4,422	)
Return of investments in unconsolidated entities					14,550		21,703				36,253
Investment in foreclosed real estate and distressed loans							(92	)			(92	)
Return of investments in foreclosed real estate and distressed loans							1,505				1,505
Intercompany advances	271,988		(398,484	)					126,496		—
Net cash provided by (used in) investing activities	271,988		(398,484	)	12,651		18,899		126,496		31,550
Cash flow provided by (used in) financing activities:
Net proceeds from issuance of senior notes			400,000								400,000
Debt issuance costs for senior notes			(3,410	)							(3,410	)
Proceeds from loans payable					350,000		239,819				589,819
Principal payments of loans payable					(366,120	)	(321,620	)			(687,740	)
Proceeds from stock-based benefit plans	7,580										7,580
Purchase of treasury stock	(200,257	)									(200,257	)
Dividends paid	(12,293	)									(12,293	)
Intercompany advances					176,261		(52,644	)	(123,617	)	—
Net cash provided by (used in) financing activities	(204,970	)	396,590		160,141		(134,445	)	(123,617	)	93,699
Net decrease in cash and cash equivalents	—		—		(188,376	)	(16,176	)	—		(204,552	)
Cash and cash equivalents, beginning of period	—		—		533,204		179,625		—		712,829
Cash and cash equivalents, end of period	—		—		344,828		163,449		—		508,277

Condensed Consolidating Statement of Cash Flows for the three months ended January 31, 2017:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	(36,218	)	6,311		(266,885	)	324,816		(3,856	)	24,168
Cash flow (used in) provided by investing activities:
Purchase of property and equipment — net					(6,393	)	79				(6,314	)
Sale and redemption of marketable securities and restricted investments — net	10,631						7,418				18,049
Investments in unconsolidated entities					(267	)	(99,674	)			(99,941	)
Return of investments in unconsolidated entities					9,950		23,303				33,253
Investment in foreclosed real estate and distressed loans							(274	)			(274	)
Return of investments in foreclosed real estate and distressed loans							1,852				1,852
Acquisition of a business					(85,183	)					(85,183	)
Investment paid - intercompany					45,000				(45,000	)	—
Intercompany advances	14,992		(6,311	)					(8,681	)	—
Net cash (used in) provided by investing activities	25,623		(6,311	)	(36,893	)	(67,296	)	(53,681	)	(138,558	)
Cash flow (used in) provided by financing activities:
Proceeds from loans payable							360,382				360,382
Principal payments of loans payable					(3,491	)	(513,342	)			(516,833	)
Proceeds from stock-based benefit plans	25,831										25,831
Purchase of treasury stock	(15,236	)									(15,236	)
Investment received - intercompany							45,000		(45,000	)	—
Intercompany advances					4,333		(106,870	)	102,537		—
Net cash (used in) provided by financing activities	10,595		—		842		(214,830	)	57,537		(145,856	)
Net (decrease) increase in cash and cash equivalents	—		—		(302,936	)	42,690		—		(260,246	)
Cash and cash equivalents, beginning of period	—		—		583,440		50,275		—		633,715
Cash and cash equivalents, end of period	—		—		280,504		92,965		—		373,469