SUPPLEMENTAL GUARANTOR INFORMATION

All of the Company's senior and convertible senior notes and the unsecured revolving credit facility are fully and unconditionally guaranteed, on a joint and several basis, by substantially all of the Company's homebuilding subsidiaries (collectively, Guarantor Subsidiaries). Each of the Guarantor Subsidiaries is 100% owned. The Company's subsidiaries engaged in the financial services segment and certain other subsidiaries do not guarantee the Company's senior and convertible senior notes and the unsecured revolving credit facility (collectively, Non-Guarantor Subsidiaries). In lieu of providing separate financial statements for the Guarantor Subsidiaries, consolidating condensed financial statements are presented below. Separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management has determined that they are not material to investors.

The guarantees by a Guarantor Subsidiary will be automatically and unconditionally released and discharged upon: (1) the sale or other disposition of its common stock whereby it is no longer a subsidiary of the Company; (2) the sale or other disposition of all or substantially all of its assets (other than to the Company or another Guarantor); (3) its merger or consolidation with an entity other than the Company or another Guarantor; or (4) depending on the provisions of the applicable indenture, either (a) its proper designation as an unrestricted subsidiary, (b) its ceasing to guarantee any of the Company's publicly traded debt securities, or (c) its ceasing to guarantee any of the Company's obligations under the revolving credit facility.

Consolidating Balance Sheet

December 31, 2012



	D.R. Horton, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
	(In millions)
ASSETS
Cash and cash equivalents	$	526.6	$	18.9	$	21.4	$	—		$	566.9
Marketable securities, available-for-sale	96.7		—		—		—			96.7
Restricted cash	54.0		0.7		0.1		—			54.8
Investments in subsidiaries	2,157.4		—		—		(2,157.4		)	—
Inventories	1,651.4		3,345.7		18.0		—			5,015.1
Deferred income taxes	220.1		463.4		—		—			683.5
Property and equipment, net	25.4		27.5		29.0		—			81.9
Other assets	126.8		270.1		104.7		—			501.6
Mortgage loans held for sale	—		—		307.9		—			307.9
Goodwill	—		38.9		—		—			38.9
Intercompany receivables	1,480.7		—		—		(1,480.7		)	—
Total Assets	$	6,339.1	$	4,165.2	$	481.1	$	(3,638.1	)	$	7,347.3
LIABILITIES & EQUITY
Accounts payable and other liabilities	$	306.8	$	705.2	$	128.5	$	—		$	1,140.5
Intercompany payables	—		1,450.3		30.4		(1,480.7		)	—
Notes payable	2,421.9		2.4		169.4		—			2,593.7
Total Liabilities	2,728.7		2,157.9		328.3		(1,480.7		)	3,734.2
Total stockholders’ equity	3,610.4		2,007.3		150.1		(2,157.4		)	3,610.4
Noncontrolling interests	—		—		2.7		—			2.7
Total Equity	3,610.4		2,007.3		152.8		(2,157.4		)	3,613.1
Total Liabilities & Equity	$	6,339.1	$	4,165.2	$	481.1	$	(3,638.1	)	$	7,347.3

NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Balance Sheet

September 30, 2012



	D.R. Horton, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
	(In millions)
ASSETS
Cash and cash equivalents	$	968.9	$	56.3	$	22.5	$	—		$	1,047.7
Marketable securities, available-for-sale	298.0		—		—		—			298.0
Restricted cash	48.7		0.5		0.1		—			49.3
Investments in subsidiaries	2,120.8		—		—		(2,120.8		)	—
Inventories	1,375.1		2,770.6		19.5		—			4,165.2
Income taxes receivable	14.4		—		—		—			14.4
Deferred income taxes	227.6		481.9		—		—			709.5
Property and equipment, net	20.7		20.7		31.2		—			72.6
Other assets	127.8		271.1		108.4		—			507.3
Mortgage loans held for sale	—		—		345.3		—			345.3
Goodwill	—		38.9		—		—			38.9
Intercompany receivables	1,022.6		—		—		(1,022.6		)	—
Total Assets	$	6,224.6	$	3,640.0	$	527.0	$	(3,143.4	)	$	7,248.2
LIABILITIES & EQUITY
Accounts payable and other liabilities	$	329.8	$	700.0	$	130.6	$	—		$	1,160.4
Intercompany payables	—		986.8		35.8		(1,022.6		)	—
Notes payable	2,302.7		2.6		187.8		—			2,493.1
Total Liabilities	2,632.5		1,689.4		354.2		(1,022.6		)	3,653.5
Total stockholders’ equity	3,592.1		1,950.6		170.2		(2,120.8		)	3,592.1
Noncontrolling interests	—		—		2.6		—			2.6
Total Equity	3,592.1		1,950.6		172.8		(2,120.8		)	3,594.7
Total Liabilities & Equity	$	6,224.6	$	3,640.0	$	527.0	$	(3,143.4	)	$	7,248.2

NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Three Months Ended December 31, 2012



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Homebuilding:
Revenues	$	406.2		$	823.6		$	3.4		$	—		$	1,233.2
Cost of sales	327.0			665.7			9.6			—			1,002.3
Gross profit (loss)	79.2			157.9			(6.2		)	—			230.9
Selling, general and administrative expense	64.0			75.1			1.7			—			140.8
Equity in (income) of subsidiaries	(94.9		)	—			—			94.9			—
Interest expense	3.2			—			—			—			3.2
Other (income)	(1.0		)	(1.1		)	(1.2		)	—			(3.3		)
	107.9			83.9			(6.7		)	(94.9		)	90.2
Financial Services:
Revenues, net of recourse and reinsurance expense	—			—			41.9			—			41.9
General and administrative expense	—			—			25.7			—			25.7
Interest expense	—			—			1.0			—			1.0
Interest and other (income)	—			—			(2.5		)	—			(2.5		)
	—			—			17.7			—			17.7
Income before income taxes	107.9			83.9			11.0			(94.9		)	107.9
Income tax expense	41.6			26.8			1.5			(28.3		)	41.6
Net income	$	66.3		$	57.1		$	9.5		$	(66.6	)	$	66.3
Comprehensive income	$	66.2		$	57.1		$	9.5		$	(66.6	)	$	66.2

NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Three Months Ended December 31, 2011



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Homebuilding:
Revenues	$	293.9		$	590.0		$	1.7		$	—		$	885.6
Cost of sales	244.4			487.1			5.5			—			737.0
Gross profit (loss)	49.5			102.9			(3.8		)	—			148.6
Selling, general and administrative expense	55.4			61.4			2.2			—			119.0
Equity in (income) of subsidiaries	(41.1		)	—			—			41.1			—
Interest expense	6.9			—			—			—			6.9
Gain on early retirement of debt, net	(0.1		)	—			—			—			(0.1		)
Other (income)	(0.8		)	(0.6		)	(0.8		)	—			(2.2		)
	29.2			42.1			(5.2		)	(41.1		)	25.0
Financial Services:
Revenues, net of recourse and reinsurance expense	—			—			21.0			—			21.0
General and administrative expense	—			—			18.9			—			18.9
Interest expense	—			—			0.9			—			0.9
Interest and other (income)	—			—			(3.0		)	—			(3.0		)
	—			—			4.2			—			4.2
Income (loss) before income taxes	29.2			42.1			(1.0		)	(41.1		)	29.2
Income tax expense	1.5			0.9			0.1			(1.0		)	1.5
Net income (loss)	$	27.7		$	41.2		$	(1.1	)	$	(40.1	)	$	27.7
Comprehensive income (loss)	$	27.8		$	41.2		$	(1.1	)	$	(40.1	)	$	27.8

NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Cash Flows

Three Months Ended December 31, 2012



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
OPERATING ACTIVITIES
Net cash (used in) provided by operating activities	$	(186.2	)	$	(491.3	)	$	51.0		$	(30.0	)	$	(656.5	)
INVESTING ACTIVITIES
Purchases of property and equipment	(6.5		)	(3.7		)	(3.8		)	—			(14.0		)
Purchases of marketable securities	(26.8		)	—			—			—			(26.8		)
Proceeds from the sale or maturity of marketable securities	226.7			—			—			—			226.7
Increase in restricted cash	(5.3		)	(0.2		)	—			—			(5.5		)
Net principal increase of other mortgage loans and real estate owned	—			—			(0.2		)	—			(0.2		)
Purchases of debt securities collateralized by residential real estate	(18.6		)	—			—			—			(18.6		)
Payment related to acquisition of a business	(9.4		)	—			—			—			(9.4		)
Net cash provided by (used in) investing activities	160.1			(3.9		)	(4.0		)	—			152.2
FINANCING ACTIVITIES
Net change in notes payable	100.0			—			(18.4		)	—			81.6
Net change in intercompany receivables/payables	(458.1		)	457.8			0.3			—			—
Proceeds from stock associated with certain employee benefit plans	2.1			—			—			—			2.1
Cash dividends paid	(60.2		)	—			(30.0		)	30.0			(60.2		)
Net cash (used in) provided by financing activities	(416.2		)	457.8			(48.1		)	30.0			23.5
Decrease in cash and cash equivalents	(442.3		)	(37.4		)	(1.1		)	—			(480.8		)
Cash and cash equivalents at beginning of period	968.9			56.3			22.5			—			1,047.7
Cash and cash equivalents at end of period	$	526.6		$	18.9		$	21.4		$	—		$	566.9

NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Cash Flows

Three Months Ended December 31, 2011



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Total
	(In millions)
OPERATING ACTIVITIES
Net cash (used in) provided by operating activities	$	(8.5	)	$	(6.3	)	$	13.1		$	—	$	(1.7	)
INVESTING ACTIVITIES
Purchases of property and equipment	(0.7		)	(1.6		)	(0.1		)	—		(2.4		)
Purchases of marketable securities	(24.4		)	—			—			—		(24.4		)
Proceeds from the sale or maturity of marketable securities	21.5			—			—			—		21.5
Decrease (increase) in restricted cash	4.6			—			(0.1		)	—		4.5
Net principal increase of other mortgage loans and real estate owned	—			—			(1.6		)	—		(1.6		)
Net cash provided by (used in) investing activities	1.0			(1.6		)	(1.8		)	—		(2.4		)
FINANCING ACTIVITIES
Net change in notes payable	(11.7		)	(0.9		)	29.5			—		16.9
Net change in intercompany receivables/payables	47.9			(7.7		)	(40.2		)	—		—
Proceeds from stock associated with certain employee benefit plans	4.6			—			—			—		4.6
Cash dividends paid	(11.9		)	—			—			—		(11.9		)
Net cash provided by (used in) financing activities	28.9			(8.6		)	(10.7		)	—		9.6
Increase (decrease) in cash and cash equivalents	21.4			(16.5		)	0.6			—		5.5
Cash and cash equivalents at beginning of period	681.3			31.3			20.0			—		732.6
Cash and cash equivalents at end of period	$	702.7		$	14.8		$	20.6		$	—	$	738.1