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).

Consolidating Balance Sheet at October 31, 2018



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		1,011,863	170,332	—		1,182,195
Inventory					7,493,205	105,014			7,598,219
Property, construction, and office equipment, net					169,265	24,016			193,281
Receivables, prepaid expenses, and other assets					291,299	392,559	(133,080	)	550,778
Mortgage loans held for sale						170,731			170,731
Customer deposits held in escrow					116,332	1,241			117,573
Investments in unconsolidated entities					44,329	387,484			431,813
Investments in and advances to consolidated entities	4,791,629		2,916,557		91,740	126,872	(7,926,798	)	—
	4,791,629		2,916,557		9,218,033	1,378,249	(8,059,878	)	10,244,590
LIABILITIES AND EQUITY
Liabilities
Loans payable					686,801				686,801
Senior notes			2,861,375						2,861,375
Mortgage company loan facility						150,000			150,000
Customer deposits					405,318	5,546			410,864
Accounts payable					361,655	443			362,098
Accrued expenses	471		37,341		600,907	462,128	(127,266	)	973,581
Advances from consolidated entities					1,551,196	476,040	(2,027,236	)	—
Income taxes payable	30,959								30,959
Total liabilities	31,430		2,898,716		3,605,877	1,094,157	(2,154,502	)	5,475,678
Equity
Stockholders’ equity
Common stock	1,779				48	3,006	(3,054	)	1,779
Additional paid-in capital	727,053		49,400			93,734	(143,134	)	727,053
Retained earnings (deficit)	5,161,551		(31,559	)	5,612,108	178,639	(5,759,188	)	5,161,551
Treasury stock, at cost	(1,130,878	)							(1,130,878	)
Accumulated other comprehensive loss	694								694
Total stockholders’ equity	4,760,199		17,841		5,612,156	275,379	(5,905,376	)	4,760,199
Noncontrolling interest						8,713			8,713
Total equity	4,760,199		17,841		5,612,156	284,092	(5,905,376	)	4,768,912
	4,791,629		2,916,557		9,218,033	1,378,249	(8,059,878	)	10,244,590

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
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					321,092	297,681		(74,074	)	544,699
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

Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2018



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					6,899,891		453,073		(209,706	)	7,143,258
Cost of revenues					5,427,753		303,962		(58,708	)	5,673,007
Selling, general and administrative	77		3,162		709,265		83,003		(111,472	)	684,035
	77		3,162		6,137,018		386,965		(170,180	)	6,357,042
Income (loss) from operations	(77	)	(3,162	)	762,873		66,108		(39,526	)	786,216
Other:
Income from unconsolidated entities					44,646		40,594				85,240
Other income - net					30,561		(2,950	)	34,849		62,460
Intercompany interest income			142,084		1,649		4,422		(148,155	)	—
Interest expense			(138,922	)	(4,422	)	(2,111	)	145,455		—
Income from consolidated subsidiaries	933,993				106,063				(1,040,056	)	—
Income (loss) before income taxes	933,916		—		941,370		106,063		(1,047,433	)	933,916
Income tax provision (benefit)	185,765				187,248		21,097		(208,345	)	185,765
Net income (loss)	748,151		—		754,122		84,966		(839,088	)	748,151
Other comprehensive income	2,926										2,926
Total comprehensive income (loss)	751,077		—		754,122		84,966		(839,088	)	751,077

Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2017



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					5,668,610		336,671		(190,223	)	5,815,058
Cost of revenues					4,414,461		223,243		(75,401	)	4,562,303
Selling, general and administrative	58		4,033		633,000		77,115		(108,634	)	605,572
	58		4,033		5,047,461		300,358		(184,035	)	5,167,875
Income (loss) from operations	(58	)	(4,033	)	621,149		36,313		(6,188	)	647,183
Other:
Income from unconsolidated entities					12,271		103,795				116,066
Other income - net	10,574				26,653		10,674		3,161		51,062
Intercompany interest income			156,366		48		4,365		(160,779	)	—
Interest expense			(162,882	)	(4,365	)	(1,819	)	169,066		—
Income from consolidated subsidiaries	803,795				142,779				(946,574	)	—
Income (loss) before income taxes	814,311		(10,549	)	798,535		153,328		(941,314	)	814,311
Income tax provision (benefit)	278,816		(3,612	)	273,418		52,500		(322,306	)	278,816
Net income (loss)	535,495		(6,937	)	525,117		100,828		(619,008	)	535,495
Other comprehensive income	1,426										1,426
Total comprehensive income (loss)	536,921		(6,937	)	525,117		100,828		(619,008	)	536,921

Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2016



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					4,984,356	361,685		(176,533	)	5,169,508
Cost of revenues					3,919,729	288,044		(63,708	)	4,144,065
Selling, general and administrative	75		3,809		556,558	74,328		(101,652	)	533,118
	75		3,809		4,476,287	362,372		(165,360	)	4,677,183
Income (loss) from operations	(75	)	(3,809	)	508,069	(687	)	(11,173	)	492,325
Other:
Income from unconsolidated entities					16,913	23,835				40,748
Other income - net	9,501				25,609	17,456		3,388		55,954
Intercompany interest income			145,828					(145,828	)	—
Interest expense			(151,410	)		(2,203	)	153,613		—
Income from consolidated subsidiaries	579,601				29,010			(608,611	)	—
Income (loss) before income taxes	589,027		(9,391	)	579,601	38,401		(608,611	)	589,027
Income tax provision (benefit)	206,932		(3,299	)	203,614	13,490		(213,805	)	206,932
Net income (loss)	382,095		(6,092	)	375,987	24,911		(394,806	)	382,095
Other comprehensive income (loss)	(858	)			31					(827	)
Total comprehensive income (loss)	381,237		(6,092	)	376,018	24,911		(394,806	)	381,268

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2018



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	(4,270	)	5,439		523,136		68,995		9,101		602,401
Cash flow provided by (used in) investing activities:
Purchase of property and equipment — net					(28,064	)	(168	)			(28,232	)
Investment in unconsolidated entities					(1,676	)	(25,815	)			(27,491	)
Return of investments in unconsolidated entities					29,242		103,948				133,190
Investment in distressed loans and foreclosed real estate							(966	)			(966	)
Return of investments in distressed loans and foreclosed real estate							4,765				4,765
Dividends received intercompany											—
Investment paid intercompany											—
Intercompany advances	555,741		(401,908	)					(153,833	)	—
Net cash provided by (used in) investing activities	555,741		(401,908	)	(498	)	81,764		(153,833	)	81,266
Cash flow (used in) provided by financing activities:
Proceeds from issuance of senior notes			400,000								400,000
Proceeds from loans payable					590,000		2,040,835				2,630,835
Debt issuance costs			(3,531	)							(3,531	)
Principal payments of loans payable					(679,184	)	(2,010,980	)			(2,690,164	)
Proceeds from stock-based benefit plans	13,392										13,392
Purchase of treasury stock	(503,159	)									(503,159	)
Dividends paid	(61,704	)									(61,704	)
Receipts related to noncontrolling interest							30				30
Dividends paid intercompany							(6,000	)	6,000		—
Investment received intercompany											—
Intercompany advances					45,205		(183,937	)	138,732		—
Net cash (used in) provided by financing activities	(551,471	)	396,469		(43,979	)	(160,052	)	144,732		(214,301	)
Net increase (decrease) in cash and cash equivalents	—		—		478,659		(9,293	)	—		469,366
Cash and cash equivalents, beginning of period	—		—		533,204		179,625		—		712,829
Cash and cash equivalents, end of period	—		—		1,011,863		170,332		—		1,182,195

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2017



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	201,766		9,955		292,802		469,948		(9,424	)	965,047
Cash flow provided by (used in) investing activities:
Purchase of property and equipment — net					(20,439	)	(8,433	)			(28,872	)
Sale and redemption of marketable securities and restricted investments — net	10,631						7,418				18,049
Investment in unconsolidated entities					(3,744	)	(118,590	)			(122,334	)
Return of investments in unconsolidated entities					58,610		136,895				195,505
Investment in distressed loans and foreclosed real estate							(710	)			(710	)
Return of investments in distressed loans and foreclosed real estate							13,765				13,765
Acquisition of a business					(83,088	)					(83,088	)
Investment paid intercompany					(45,000	)			45,000		—
Intercompany advances	51,071		226,511						(277,582	)	—
Net cash provided by (used in) investing activities	61,702		226,511		(93,661	)	30,345		(232,582	)	(7,685	)
Cash flow (used in) provided by financing activities:
Net proceeds from issuance of senior notes			455,483								455,483
Proceeds from loans payable					250,068		1,370,975				1,621,043
Debt issuance costs			(4,449	)							(4,449	)
Principal payments of loans payable					(538,527	)	(1,460,830	)			(1,999,357	)
Redemption of senior notes			(687,500	)							(687,500	)
Proceeds from stock-based benefit plans	66,000										66,000
Purchase of treasury stock	(290,881	)									(290,881	)
Dividends paid	(38,587	)									(38,587	)
Investment received intercompany							45,000		(45,000	)	—
Intercompany advances					39,082		(326,088	)	287,006		—
Net cash used in financing activities	(263,468	)	(236,466	)	(249,377	)	(370,943	)	242,006		(878,248	)
Net decrease in cash and cash equivalents	—		—		(50,236	)	129,350		—		79,114
Cash and cash equivalents, beginning of period	—		—		583,440		50,275		—		633,715
Cash and cash equivalents, end of period	—		—		533,204		179,625		—		712,829

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2016



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	62,579		14,768		116,116		(22,737	)	(19,841	)	150,885
Cash flow (used in) provided by investing activities:
Purchase of property and equipment — net					(27,835	)	(591	)			(28,426	)
Sale and redemption of marketable securities							10,000				10,000
Investment in unconsolidated entities					(2,637	)	(67,018	)			(69,655	)
Return of investments in unconsolidated entities					32,857		14,949				47,806
Investment in distressed loans and foreclosed real estate							(1,133	)			(1,133	)
Return of investments in distressed loans and foreclosed real estate							49,619				49,619
Dividend received - intercompany					5,000				(5,000	)	—
Investment paid intercompany					(5,000	)			5,000		—
Intercompany advances	323,207		(14,733	)					(308,474	)	—
Net cash (used in) provided by investing activities	323,207		(14,733	)	2,385		5,826		(308,474	)	8,211
Cash flow provided by (used in) financing activities:
Proceeds from loans payable					550,000		1,893,496				2,443,496
Debt issuance costs			(35	)	(4,868	)					(4,903	)
Principal payments of loans payable					(714,089	)	(1,783,496	)			(2,497,585	)
Proceeds from stock-based benefit plans	6,986										6,986
Purchase of treasury stock	(392,772	)									(392,772	)
Receipts related to noncontrolling interest							404				404
Dividend paid - intercompany							(5,000	)	5,000		—
Investment received intercompany							5,000		(5,000	)	—
Intercompany advances					(149,703	)	(178,612	)	328,315		—
Net cash provided by (used in) financing activities	(385,786	)	(35	)	(318,660	)	(68,208	)	328,315		(444,374	)
Net increase in cash and cash equivalents	—		—		(200,159	)	(85,119	)	—		(285,278	)
Cash and cash equivalents, beginning of period	—		—		783,599		135,394		—		918,993
Cash and cash equivalents, end of period	—		—		583,440		50,275		—		633,715