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 D. R. Horton, Inc. and other subsidiaries (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.

As described in Note A, the assets, liabilities and operating results of certain subsidiaries previously included in the Company’s homebuilding operations have been reclassified to its financial services and other operations. The accompanying condensed consolidating balance sheet as of September 30, 2015 and the condensed consolidating statements of operations for fiscal 2015 and 2014 reflect these reclassifications. The impact to the following condensed consolidating financial statements is limited to reclassifications within the Non-Guarantor Subsidiaries column. Additionally, certain other reclassifications were made to prior year amounts to conform to the current year presentation.

NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Balance Sheet

September 30, 2016



	D.R. Horton, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
	(In millions)
ASSETS
Cash and cash equivalents	$	1,076.4	$	154.0	$	72.8	$	—		$	1,303.2
Restricted cash	7.4		2.1		—		—			9.5
Investments in subsidiaries	4,118.6		—		—		(4,118.6		)	—
Inventories	2,822.1		5,425.7		93.1		—			8,340.9
Deferred income taxes	159.3		314.1		2.9		—			476.3
Property and equipment, net	72.0		49.9		78.7		(5.2		)	195.4
Other assets	168.7		274.2		56.7		—			499.6
Mortgage loans held for sale	—		—		654.0		—			654.0
Goodwill	—		80.0		—		—			80.0
Intercompany receivables	1,604.5		—		—		(1,604.5		)	—
Total Assets	$	10,029.0	$	6,300.0	$	958.2	$	(5,728.3	)	$	11,558.9
LIABILITIES & EQUITY
Accounts payable and other liabilities	$	444.1	$	933.1	$	119.2	$	(1.8	)	$	1,494.6
Intercompany payables	—		1,417.1		187.4		(1,604.5		)	—
Notes payable	2,789.0		9.3		473.0		—			3,271.3
Total Liabilities	3,233.1		2,359.5		779.6		(1,606.3		)	4,765.9
Stockholders’ equity	6,795.9		3,940.5		178.1		(4,122.0		)	6,792.5
Noncontrolling interests	—		—		0.5		—			0.5
Total Equity	6,795.9		3,940.5		178.6		(4,122.0		)	6,793.0
Total Liabilities & Equity	$	10,029.0	$	6,300.0	$	958.2	$	(5,728.3	)	$	11,558.9

NOTE P – 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		39.6		—			146.9
Other assets	199.5		240.4		87.4		—			527.3
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 P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Year Ended September 30, 2016



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Homebuilding:
Revenues	$	3,947.5		$	7,930.3		$	—		$	(16.0	)	$	11,861.8
Cost of sales	3,163.6			6,357.5			(7.7		)	(10.8		)	9,502.6
Gross profit	783.9			1,572.8			7.7			(5.2		)	2,359.2
Selling, general and administrative expense	503.8			592.7			3.8			—			1,100.3
Goodwill impairment	—			7.2			—			—			7.2
Equity in (income) of subsidiaries	(1,071.0		)	—			—			1,071.0			—
Other (income) expense	(7.6		)	(3.9		)	(1.2		)	—			(12.7		)
Homebuilding pre-tax income	1,358.7			976.8			5.1			(1,076.2		)	1,264.4
Financial Services and Other:
Revenues	—			—			295.6			—			295.6
General and administrative expense	—			—			220.0			—			220.0
Interest and other (income) expense	—			—			(13.5		)	—			(13.5		)
Financial services and other pre-tax income	—			—			89.1			—			89.1
Income before income taxes	1,358.7			976.8			94.2			(1,076.2		)	1,353.5
Income tax expense	469.0			334.9			35.5			(372.2		)	467.2
Net income	$	889.7		$	641.9		$	58.7		$	(704.0	)	$	886.3
Comprehensive income	$	888.3		$	641.9		$	58.7		$	(704.0	)	$	884.9

NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Year Ended September 30, 2015



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Homebuilding:
Revenues	$	3,334.6		$	7,224.4		$	—		$	—		$	10,559.0
Cost of sales	2,698.1			5,834.3			3.3			—			8,535.7
Gross profit (loss)	636.5			1,390.1			(3.3		)	—			2,023.3
Selling, general and administrative expense	461.2			538.8			3.0			—			1,003.0
Goodwill impairment	—			9.8			—			—			9.8
Equity in (income) of subsidiaries	(945.9		)	—			—			945.9			—
Other (income) expense	(2.2		)	(4.9		)	(0.7		)	—			(7.8		)
Homebuilding pre-tax income (loss)	1,123.4			846.4			(5.6		)	(945.9		)	1,018.3
Financial Services and Other:
Revenues	—			—			265.0			—			265.0
General and administrative expense	—			—			183.0			—			183.0
Interest and other (income) expense	—			—			(23.1		)	—			(23.1		)
Financial services and other pre-tax income	—			—			105.1			—			105.1
Income before income taxes	1,123.4			846.4			99.5			(945.9		)	1,123.4
Income tax expense	372.7			277.2			37.4			(314.6		)	372.7
Net income	$	750.7		$	569.2		$	62.1		$	(631.3	)	$	750.7
Comprehensive income	$	750.7		$	568.4		$	62.1		$	(631.3	)	$	749.9

NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Year Ended September 30, 2014



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Homebuilding:
Revenues	$	2,547.4		$	5,299.9		$	11.2		$	—		$	7,858.5
Cost of sales	2,038.0			4,222.5			8.1			—			6,268.6
Gross profit	509.4			1,077.4			3.1			—			1,589.9
Selling, general and administrative expense	388.3			433.0			5.6			—			826.9
Equity in (income) of subsidiaries	(691.8		)	—			—			691.8			—
Other (income) expense	(1.3		)	(3.3		)	(0.9		)	—			(5.5		)
Homebuilding pre-tax income (loss)	814.2			647.7			(1.6		)	(691.8		)	768.5
Financial Services and Other:
Revenues	—			—			166.4			—			166.4
General and administrative expense	—			—			138.5			—			138.5
Interest and other (income) expense	—			—			(17.8		)	—			(17.8		)
Financial services and other pre-tax income	—			—			45.7			—			45.7
Income before income taxes	814.2			647.7			44.1			(691.8		)	814.2
Income tax expense	280.7			222.1			16.6			(238.7		)	280.7
Net income	$	533.5		$	425.6		$	27.5		$	(453.1	)	$	533.5
Comprehensive income	$	533.5		$	425.9		$	27.5		$	(453.1	)	$	533.8

NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Cash Flows

Year Ended September 30, 2016



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
OPERATING ACTIVITIES
Net cash provided by (used in) operating activities	$	115.1		$	596.7		$	(16.0	)	$	(77.8	)	$	618.0
INVESTING ACTIVITIES
Purchases of property and equipment	(40.7		)	(14.3		)	(47.1		)	16.0			(86.1		)
Decrease in restricted cash	—			0.2			—			—			0.2
Net principal decrease of other mortgage loans and real estate owned	—			—			19.7			—			19.7
Proceeds from the sale of debt securities collateralized by residential real estate	35.8			—			—			—			35.8
Intercompany advances	409.9			—			—			(409.9		)	—
Payments related to acquisition of a business	(82.2		)	—			—			—			(82.2		)
Net cash provided by (used in) investing activities	322.8			(14.1		)	(27.4		)	(393.9		)	(112.6		)
FINANCING ACTIVITIES
Repayment of notes payable	(542.9		)	(1.9		)	(4.9		)	—			(549.7		)
Intercompany advances	—			(521.3		)	111.4			409.9			—
Proceeds from stock associated with certain employee benefit plans	72.4			—			—			—			72.4
Excess income tax benefit from employee stock awards	10.0			—			—			—			10.0
Cash dividends paid	(118.7		)	—			(61.8		)	61.8			(118.7		)
Net cash (used in) provided by financing activities	(579.2		)	(523.2		)	44.7			471.7			(586.0		)
(Decrease) increase in cash and cash equivalents	(141.3		)	59.4			1.3			—			(80.6		)
Cash and cash equivalents at beginning of year	1,217.7			94.6			71.5			—			1,383.8
Cash and cash equivalents at end of year	$	1,076.4		$	154.0		$	72.8		$	—		$	1,303.2

NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Cash Flows

Year Ended September 30, 2015



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
OPERATING ACTIVITIES
Net cash provided by (used in) operating activities	$	308.2		$	530.1		$	(106.3	)	$	(31.6	)	$	700.4
INVESTING ACTIVITIES
Purchases of property and equipment	(24.5		)	(24.8		)	(6.8		)	—			(56.1		)
Proceeds from the sale of property and equipment to a related party	56.0			—			—			—			56.0
Increase in restricted cash	(0.4		)	(0.3		)	—			—			(0.7		)
Net principal increase of other mortgage loans and real estate owned	—			—			(8.9		)	—			(8.9		)
Purchases of debt securities collateralized by residential real estate	(14.8		)	—			—			—			(14.8		)
Intercompany advances	444.7			—			—			(444.7		)	—
Payments related to acquisition of a business	(70.9		)	—			—			—			(70.9		)
Net cash provided by (used in) investing activities	390.1			(25.1		)	(15.7		)	(444.7		)	(95.4		)
FINANCING ACTIVITIES
Proceeds from notes payable	1,472.0			—			118.7			—			1,590.7
Repayment of notes payable	(1,432.5		)	(6.3		)	(17.4		)	—			(1,456.2		)
Intercompany advances	—			(493.6		)	48.9			444.7			—
Proceeds from stock associated with certain employee benefit plans	61.8			—			—			—			61.8
Excess income tax benefit from employee stock awards	12.3			—			—			—			12.3
Cash dividends paid	(91.6		)	—			(31.6		)	31.6			(91.6		)
Net cash provided by (used in) financing activities	22.0			(499.9		)	118.6			476.3			117.0
Increase (decrease) in cash and cash equivalents	720.3			5.1			(3.4		)	—			722.0
Cash and cash equivalents at beginning of year	497.4			89.5			74.9			—			661.8
Cash and cash equivalents at end of year	$	1,217.7		$	94.6		$	71.5		$	—		$	1,383.8

NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Cash Flows

Year Ended September 30, 2014



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
OPERATING ACTIVITIES
Net cash used in operating activities	$	(257.4	)	$	(293.9	)	$	(57.5	)	$	(52.6	)	$	(661.4	)
INVESTING ACTIVITIES
Purchases of property and equipment	(63.9		)	(28.0		)	(8.3		)	—			(100.2		)
Decrease (increase) in restricted cash	69.7			(0.9		)	(1.0		)	—			67.8
Net principal increase of other mortgage loans and real estate owned	—			—			(5.6		)	—			(5.6		)
Intercompany advances	(385.7		)	—			—			385.7			—
Payments related to acquisition of a business	(244.1		)	—			—			—			(244.1		)
Net cash used in investing activities	(624.0		)	(28.9		)	(14.9		)	385.7			(282.1		)
FINANCING ACTIVITIES
Proceeds from notes payable	1,307.0			—			120.6			—			1,427.6
Repayment of notes payable	(796.8		)	—			(0.1		)	—			(796.9		)
Intercompany advances	—			373.9			11.8			(385.7		)	—
Proceeds from stock associated with certain employee benefit plans	45.2			—			—			—			45.2
Excess income tax benefit from employee stock awards	0.6			—			—			—			0.6
Cash dividends paid	(48.6		)	—			(52.6		)	52.6			(48.6		)
Net cash provided by financing activities	507.4			373.9			79.7			(333.1		)	627.9
(Decrease) increase in cash and cash equivalents	(374.0		)	51.1			7.3			—			(315.6		)
Cash and cash equivalents at beginning of year	871.4			38.4			67.6			—			977.4
Cash and cash equivalents at end of year	$	497.4		$	89.5		$	74.9		$	—		$	661.8