SUPPLEMENTAL GUARANTOR INFORMATION

All of the Company’s 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, directly or indirectly, by the Company. The Company’s subsidiaries engaged in the financial services segment and certain other subsidiaries do not guarantee the Company’s 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

March 31, 2016



	D.R. Horton, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
	(In millions)
ASSETS
Cash and cash equivalents	$	1,036.3	$	114.0	$	73.8	$	—		$	1,224.1
Restricted cash	8.6		2.8		—		—			11.4
Investments in subsidiaries	3,727.7		—		—		(3,727.7		)	—
Inventories	2,780.0		5,408.4		28.2		—			8,216.6
Deferred income taxes	173.8		347.6		5.2		—			526.6
Property and equipment, net	61.9		50.2		37.4		—			149.5
Other assets	128.1		236.6		106.5		(2.5		)	468.7
Mortgage loans held for sale	—		—		616.1		—			616.1
Goodwill	—		87.2		—		—			87.2
Intercompany receivables	1,888.2		—		—		(1,888.2		)	—
Total Assets	$	9,804.6	$	6,246.8	$	867.2	$	(5,618.4	)	$	11,300.2
LIABILITIES & EQUITY
Accounts payable and other liabilities	$	394.7	$	875.6	$	118.2	$	—		$	1,388.5
Intercompany payables	—		1,798.6		89.6		(1,888.2		)	—
Notes payable	3,159.0		8.3		495.4		—			3,662.7
Total Liabilities	3,553.7		2,682.5		703.2		(1,888.2		)	5,051.2
Stockholders’ equity	6,250.9		3,564.3		163.4		(3,730.2		)	6,248.4
Noncontrolling interests	—		—		0.6		—			0.6
Total Equity	6,250.9		3,564.3		164.0		(3,730.2		)	6,249.0
Total Liabilities & Equity	$	9,804.6	$	6,246.8	$	867.2	$	(5,618.4	)	$	11,300.2

NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Balance Sheet

September 30, 2015



	D.R. Horton, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
	(In millions)
ASSETS
Cash and cash equivalents	$	1,217.7	$	94.6	$	71.5	$	—		$	1,383.8
Restricted cash	7.4		2.3		—		—			9.7
Investments in subsidiaries	3,479.7		—		—		(3,479.7		)	—
Inventories	2,597.3		5,184.3		25.4		—			7,807.0
Deferred income taxes	179.9		373.0		5.2		—			558.1
Property and equipment, net	54.6		52.7		36.7		—			144.0
Other assets	199.5		240.4		90.3		—			530.2
Mortgage loans held for sale	—		—		631.0		—			631.0
Goodwill	—		87.2		—		—			87.2
Intercompany receivables	1,932.2		—		—		(1,932.2		)	—
Total Assets	$	9,668.3	$	6,034.5	$	860.1	$	(5,411.9	)	$	11,151.0
LIABILITIES & EQUITY
Accounts payable and other liabilities	$	447.2	$	872.8	$	124.1	$	—		$	1,444.1
Intercompany payables	—		1,856.7		75.5		(1,932.2		)	—
Notes payable	3,326.8		6.8		477.9		—			3,811.5
Total Liabilities	3,774.0		2,736.3		677.5		(1,932.2		)	5,255.6
Stockholders’ equity	5,894.3		3,298.2		181.5		(3,479.7		)	5,894.3
Noncontrolling interests	—		—		1.1		—			1.1
Total Equity	5,894.3		3,298.2		182.6		(3,479.7		)	5,895.4
Total Liabilities & Equity	$	9,668.3	$	6,034.5	$	860.1	$	(5,411.9	)	$	11,151.0

NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Three Months Ended March 31, 2016



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Homebuilding:
Revenues	$	864.4		$	1,836.6		$	—		$	—		$	2,701.0
Cost of sales	694.9			1,482.3			(7.9		)	—			2,169.3
Gross profit	169.5			354.3			7.9			—			531.7
Selling, general and administrative expense	118.8			137.7			1.7			—			258.2
Equity in (income) of subsidiaries	(244.4		)	—			—			244.4			—
Other (income)	(5.4		)	(2.1		)	(2.1		)	—			(9.6		)
Homebuilding pre-tax income	300.5			218.7			8.3			(244.4		)	283.1
Financial Services:
Revenues	—			—			66.9			—			66.9
General and administrative expense	—			—			51.0			—			51.0
Interest and other (income)	—			—			(1.5		)	—			(1.5		)
Financial services pre-tax income	—			—			17.4			—			17.4
Income before income taxes	300.5			218.7			25.7			(244.4		)	300.5
Income tax expense	105.4			76.4			9.4			(85.8		)	105.4
Net income	$	195.1		$	142.3		$	16.3		$	(158.6	)	$	195.1
Comprehensive income	$	192.5		$	142.3		$	16.3		$	(158.6	)	$	192.5

NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Six Months Ended March 31, 2016



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Homebuilding:
Revenues	$	1,660.0		$	3,407.5		$	—		$	(5.4	)	$	5,062.1
Cost of sales	1,333.7			2,736.1			(5.5		)	(2.9		)	4,061.4
Gross profit	326.3			671.4			5.5			(2.5		)	1,000.7
Selling, general and administrative expense	230.8			266.9			3.9			—			501.6
Equity in (income) of subsidiaries	(442.6		)	—			—			442.6			—
Other (income)	(6.2		)	(2.8		)	(4.0		)	—			(13.0		)
Homebuilding pre-tax income	544.3			407.3			5.6			(445.1		)	512.1
Financial Services:
Revenues	—			—			122.2			—			122.2
General and administrative expense	—			—			97.1			—			97.1
Interest and other (income)	—			—			(4.6		)	—			(4.6		)
Financial services pre-tax income	—			—			29.7			—			29.7
Income before income taxes	544.3			407.3			35.3			(445.1		)	541.8
Income tax expense	189.0			141.5			13.1			(154.6		)	189.0
Net income	$	355.3		$	265.8		$	22.2		$	(290.5	)	$	352.8
Comprehensive income	$	353.9		$	265.8		$	22.2		$	(290.5	)	$	351.4

NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Three Months Ended March 31, 2015



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Homebuilding:
Revenues	$	727.0		$	1,611.5		$	—		$	—		$	2,338.5
Cost of sales	593.7			1,297.8			0.5			—			1,892.0
Gross profit (loss)	133.3			313.7			(0.5		)	—			446.5
Selling, general and administrative expense	112.4			124.4			5.6			—			242.4
Equity in (income) of subsidiaries	(208.5		)	—			—			208.5			—
Other (income)	(0.7		)	(1.1		)	(2.7		)	—			(4.5		)
Homebuilding pre-tax income (loss)	230.1			190.4			(3.4		)	(208.5		)	208.6
Financial Services:
Revenues	—			—			59.5			—			59.5
General and administrative expense	—			—			40.7			—			40.7
Interest and other (income)	—			—			(2.7		)	—			(2.7		)
Financial services pre-tax income	—			—			21.5			—			21.5
Income before income taxes	230.1			190.4			18.1			(208.5		)	230.1
Income tax expense	82.2			67.7			6.9			(74.6		)	82.2
Net income	$	147.9		$	122.7		$	11.2		$	(133.9	)	$	147.9
Comprehensive income	$	147.9		$	122.7		$	11.2		$	(133.9	)	$	147.9

NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Six Months Ended March 31, 2015



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Homebuilding:
Revenues	$	1,423.8		$	3,167.7		$	—		$	—		$	4,591.5
Cost of sales	1,147.7			2,554.9			3.9			—			3,706.5
Gross profit (loss)	276.1			612.8			(3.9		)	—			885.0
Selling, general and administrative expense	222.6			245.6			12.2			—			480.4
Equity in (income) of subsidiaries	(396.3		)	—			—			396.3			—
Other (income)	(1.0		)	(2.5		)	(6.6		)	—			(10.1		)
Homebuilding pre-tax income (loss)	450.8			369.7			(9.5		)	(396.3		)	414.7
Financial Services:
Revenues	—			—			109.2			—			109.2
General and administrative expense	—			—			78.6			—			78.6
Interest and other (income)	—			—			(5.5		)	—			(5.5		)
Financial services pre-tax income	—			—			36.1			—			36.1
Income before income taxes	450.8			369.7			26.6			(396.3		)	450.8
Income tax expense	160.4			130.9			10.3			(141.2		)	160.4
Net income	$	290.4		$	238.8		$	16.3		$	(255.1	)	$	290.4
Comprehensive income	$	290.4		$	238.8		$	16.3		$	(255.1	)	$	290.4

NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Cash Flows

Six Months Ended March 31, 2016



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
OPERATING ACTIVITIES
Net cash (used in) provided by operating activities	$	(42.4	)	$	84.0		$	30.7		$	(45.4	)	$	26.9
INVESTING ACTIVITIES
Purchases of property and equipment	(20.5		)	(6.1		)	(19.2		)	5.4			(40.4		)
Increase in restricted cash	(1.2		)	(0.5		)	—			—			(1.7		)
Net principal increase of other mortgage loans and real estate owned	—			—			(0.4		)	—			(0.4		)
Proceeds from sale of debt securities collateralized by residential real estate	35.8			—			—			—			35.8
Intercompany advances	43.9			—			—			(43.9		)	—
Net cash provided by (used in) investing activities	58.0			(6.6		)	(19.6		)	(38.5		)	(6.7		)
FINANCING ACTIVITIES
Proceeds from notes payable	—			—			17.6			—			17.6
Repayment of notes payable	(170.1		)	(0.5		)	—			—			(170.6		)
Intercompany advances	—			(57.5		)	13.6			43.9			—
Proceeds from stock associated with certain employee benefit plans	28.4			—			—			—			28.4
Excess income tax benefit from employee stock awards	3.9			—			—			—			3.9
Cash dividends paid	(59.2		)	—			(40.0		)	40.0			(59.2		)
Net cash used in financing activities	(197.0		)	(58.0		)	(8.8		)	83.9			(179.9		)
(Decrease) increase in cash and cash equivalents	(181.4		)	19.4			2.3			—			(159.7		)
Cash and cash equivalents at beginning of period	1,217.7			94.6			71.5			—			1,383.8
Cash and cash equivalents at end of period	$	1,036.3		$	114.0		$	73.8		$	—		$	1,224.1

NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Cash Flows

Six Months Ended March 31, 2015



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
OPERATING ACTIVITIES
Net cash used in operating activities	$	(35.5	)	$	(74.0	)	$	(44.3	)	$	(15.0	)	$	(168.8	)
INVESTING ACTIVITIES
(Purchases of) proceeds from sale of property and equipment	(15.0		)	(11.0		)	2.0			—			(24.0		)
Increase in restricted cash	(0.2		)	(0.2		)	—			—			(0.4		)
Net principal increase of other mortgage loans and real estate owned	—			—			(4.9		)	—			(4.9		)
Intercompany advances	(120.9		)	—			—			120.9			—
Net cash used in investing activities	(136.1		)	(11.2		)	(2.9		)	120.9			(29.3		)
FINANCING ACTIVITIES
Proceeds from notes payable	1,312.0			—			38.3			—			1,350.3
Repayment of notes payable	(1,097.7		)	(0.3		)	(0.3		)	—			(1,098.3		)
Intercompany advances	—			92.0			28.9			(120.9		)	—
Proceeds from stock associated with certain employee benefit plans	21.0			—			—			—			21.0
Excess income tax benefit from employee stock awards	6.7			—			—			—			6.7
Cash dividends paid	(45.7		)	—			(15.0		)	15.0			(45.7		)
Net cash provided by financing activities	196.3			91.7			51.9			(105.9		)	234.0
Increase in cash and cash equivalents	24.7			6.5			4.7			—			35.9
Cash and cash equivalents at beginning of period	497.4			89.5			74.9			—			661.8
Cash and cash equivalents at end of period	$	522.1		$	96.0		$	79.6		$	—		$	697.7