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 operating results of certain subsidiaries previously included in the Company’s homebuilding operations have been reclassified to its financial services and other operations. These reclassifications are limited to the Non-Guarantor Subsidiaries column of the condensed consolidating statement of operations for the three and nine months ended June 30, 2016.

NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Balance Sheet

June 30, 2017



	D.R. Horton, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
	(In millions)
ASSETS
Cash and cash equivalents	$	329.3	$	89.8	$	93.3	$	—		$	512.4
Restricted cash	8.5		2.4		—		—			10.9
Investments in subsidiaries	4,595.5		—		—		(4,595.5		)	—
Inventories	3,586.1		5,837.2		130.7		—			9,554.0
Deferred income taxes	142.9		237.9		2.9		—			383.7
Property and equipment, net	104.3		58.4		125.3		(5.2		)	282.8
Other assets	204.9		252.6		68.4		—			525.9
Mortgage loans held for sale	—		—		627.4		—			627.4
Goodwill	—		80.0		—		—			80.0
Intercompany receivables	1,422.0		—		—		(1,422.0		)	—
Total Assets	$	10,393.5	$	6,558.3	$	1,048.0	$	(6,022.7	)	$	11,977.1
LIABILITIES & EQUITY
Accounts payable and other liabilities	$	511.8	$	967.7	$	136.2	$	(1.8	)	$	1,613.9
Intercompany payables	—		1,139.2		282.8		(1,422.0		)	—
Notes payable	2,442.1		11.0		473.4		—			2,926.5
Total Liabilities	2,953.9		2,117.9		892.4		(1,423.8		)	4,540.4
Stockholders’ equity	7,439.6		4,440.4		155.1		(4,598.9		)	7,436.2
Noncontrolling interests	—		—		0.5		—			0.5
Total Equity	7,439.6		4,440.4		155.6		(4,598.9		)	7,436.7
Total Liabilities & Equity	$	10,393.5	$	6,558.3	$	1,048.0	$	(6,022.7	)	$	11,977.1

NOTE N – 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 N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Three Months Ended June 30, 2017



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Homebuilding:
Revenues	$	1,332.0		$	2,352.3		$	0.2		$	—		$	3,684.5
Cost of sales	1,056.7			1,900.9			3.5			—			2,961.1
Gross profit (loss)	275.3			451.4			(3.3		)	—			723.4
Selling, general and administrative expense	148.5			159.9			1.1			—			309.5
Equity in (income) of subsidiaries	(317.0		)	—			—			317.0			—
Other (income) expense	(0.7		)	(0.2		)	(0.4		)	—			(1.3		)
Homebuilding pre-tax income (loss)	444.5			291.7			(4.0		)	(317.0		)	415.2
Financial Services and Other:
Revenues	—			—			91.9			—			91.9
General and administrative expense	—			—			65.0			—			65.0
Interest and other (income) expense	—			—			(2.4		)	—			(2.4		)
Financial services and other pre-tax income	—			—			29.3			—			29.3
Income before income taxes	444.5			291.7			25.3			(317.0		)	444.5
Income tax expense	155.5			101.3			9.8			(111.1		)	155.5
Net income	$	289.0		$	190.4		$	15.5		$	(205.9	)	$	289.0
Comprehensive income	$	289.0		$	190.4		$	15.5		$	(205.9	)	$	289.0

NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Nine Months Ended June 30, 2017



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Homebuilding:
Revenues	$	3,344.5		$	6,293.0		$	37.5		$	—		$	9,675.0
Cost of sales	2,670.0			5,072.9			36.0			—			7,778.9
Gross profit	674.5			1,220.1			1.5			—			1,896.1
Selling, general and administrative expense	415.7			452.8			3.9			—			872.4
Equity in (income) of subsidiaries	(851.8		)	—			—			851.8			—
Other (income) expense	(5.9		)	(1.1		)	(0.8		)	—			(7.8		)
Homebuilding pre-tax income (loss)	1,116.5			768.4			(1.6		)	(851.8		)	1,031.5
Financial Services and Other:
Revenues	—			—			256.9			—			256.9
General and administrative expense	—			—			183.1			—			183.1
Interest and other (income) expense	—			—			(11.2		)	—			(11.2		)
Financial services and other pre-tax income	—			—			85.0			—			85.0
Income before income taxes	1,116.5			768.4			83.4			(851.8		)	1,116.5
Income tax expense	391.4			267.7			31.5			(299.2		)	391.4
Net income	$	725.1		$	500.7		$	51.9		$	(552.6	)	$	725.1
Comprehensive income	$	725.1		$	500.7		$	51.9		$	(552.6	)	$	725.1

NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Three Months Ended June 30, 2016



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Homebuilding:
Revenues	$	1,040.8		$	2,118.6		$	—		$	(10.6	)	$	3,148.8
Cost of sales	836.9			1,693.2			0.8			(7.9		)	2,523.0
Gross profit (loss)	203.9			425.4			(0.8		)	(2.7		)	625.8
Selling, general and administrative expense	126.6			151.5			1.2			—			279.3
Equity in (income) of subsidiaries	(303.3		)	—			—			303.3			—
Other (income) expense	(0.7		)	(0.6		)	(0.6		)	—			(1.9		)
Homebuilding pre-tax income (loss)	381.3			274.5			(1.4		)	(306.0		)	348.4
Financial Services and Other:
Revenues	—			—			83.1			—			83.1
General and administrative expense	—			—			57.5			—			57.5
Interest and other (income) expense	—			—			(4.6		)	—			(4.6		)
Financial services and other pre-tax income	—			—			30.2			—			30.2
Income before income taxes	381.3			274.5			28.8			(306.0		)	378.6
Income tax expense	130.6			92.4			10.8			(105.0		)	128.8
Net income	$	250.7		$	182.1		$	18.0		$	(201.0	)	$	249.8
Comprehensive income	$	250.7		$	182.1		$	18.0		$	(201.0	)	$	249.8

NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Nine Months Ended June 30, 2016



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Homebuilding:
Revenues	$	2,700.7		$	5,526.1		$	—		$	(16.0	)	$	8,210.8
Cost of sales	2,170.5			4,429.3			(4.7		)	(10.8		)	6,584.3
Gross profit	530.2			1,096.8			4.7			(5.2		)	1,626.5
Selling, general and administrative expense	357.4			418.4			2.6			—			778.4
Equity in (income) of subsidiaries	(745.9		)	—			—			745.9			—
Other (income) expense	(6.9		)	(3.4		)	(0.9		)	—			(11.2		)
Homebuilding pre-tax income	925.6			681.8			3.0			(751.1		)	859.3
Financial Services and Other:
Revenues	—			—			205.4			—			205.4
General and administrative expense	—			—			157.1			—			157.1
Interest and other (income) expense	—			—			(12.8		)	—			(12.8		)
Financial services and other pre-tax income	—			—			61.1			—			61.1
Income before income taxes	925.6			681.8			64.1			(751.1		)	920.4
Income tax expense	319.6			234.0			23.9			(259.7		)	317.8
Net income	$	606.0		$	447.8		$	40.2		$	(491.4	)	$	602.6
Comprehensive income	$	604.6		$	447.8		$	40.2		$	(491.4	)	$	601.2

NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Cash Flows

Nine Months Ended June 30, 2017



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
OPERATING ACTIVITIES
Net cash (used in) provided by operating activities	$	(397.8	)	$	239.1		$	42.9		$	(75.0	)	$	(190.8	)
INVESTING ACTIVITIES
Purchases of property and equipment	(44.6		)	(18.8		)	(40.1		)	—			(103.5		)
Increase in restricted cash	(1.1		)	(0.3		)	(8.5		)	—			(9.9		)
Net principal decrease of other mortgage loans and real estate owned	—			—			5.3			—			5.3
Purchases of debt securities collateralized by residential real estate	(8.8		)	—			—			—			(8.8		)
Intercompany advances	187.3			—			—			(187.3		)	—
Payments related to acquisition of a business	(4.1		)	—			—			—			(4.1		)
Net cash provided by (used in) investing activities	128.7			(19.1		)	(43.3		)	(187.3		)	(121.0		)
FINANCING ACTIVITIES
Proceeds from notes payable	700.0			—			0.4			—			700.4
Repayment of notes payable	(1,050.0		)	(1.4		)	—			—			(1,051.4		)
Intercompany advances	—			(282.8		)	95.5			187.3			—
Proceeds from stock associated with certain employee benefit plans	34.3			—			—			—			34.3
Excess income tax benefit from employee stock awards	10.5			—			—			—			10.5
Cash dividends paid	(112.2		)	—			(75.0		)	75.0			(112.2		)
Repurchases of common stock	(60.6		)	—			—			—			(60.6		)
Net cash (used in) provided by financing activities	(478.0		)	(284.2		)	20.9			262.3			(479.0		)
(Decrease) increase in cash and cash equivalents	(747.1		)	(64.2		)	20.5			—			(790.8		)
Cash and cash equivalents at beginning of period	1,076.4			154.0			72.8			—			1,303.2
Cash and cash equivalents at end of period	$	329.3		$	89.8		$	93.3		$	—		$	512.4

NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Cash Flows

Nine Months Ended June 30, 2016



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
OPERATING ACTIVITIES
Net cash (used in) provided by operating activities	$	(9.0	)	$	160.3		$	(17.3	)	$	(45.4	)	$	88.6
INVESTING ACTIVITIES
Purchases of property and equipment	(33.1		)	(15.6		)	(21.9		)	5.4			(65.2		)
Increase in restricted cash	(1.3		)	(0.8		)	—			—			(2.1		)
Net principal decrease of other mortgage loans and real estate owned	—			—			4.3			—			4.3
Proceeds from sale of debt securities collateralized by residential real estate	35.8			—			—			—			35.8
Intercompany advances	70.6			—			—			(70.6		)	—
Net cash provided by (used in) investing activities	72.0			(16.4		)	(17.6		)	(65.2		)	(27.2		)
FINANCING ACTIVITIES
Proceeds from notes payable	—			—			26.3			—			26.3
Repayment of notes payable	(542.9		)	(1.0		)	—			—			(543.9		)
Intercompany advances	—			(138.4		)	67.8			70.6			—
Proceeds from stock associated with certain employee benefit plans	61.8			—			—			—			61.8
Excess income tax benefit from employee stock awards	6.3			—			—			—			6.3
Cash dividends paid	(88.9		)	—			(40.0		)	40.0			(88.9		)
Net cash (used in) provided by financing activities	(563.7		)	(139.4		)	54.1			110.6			(538.4		)
(Decrease) increase in cash and cash equivalents	(500.7		)	4.5			19.2			—			(477.0		)
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	$	717.0		$	99.1		$	90.7		$	—		$	906.8