SUPPLEMENTAL GUARANTOR INFORMATION

All of the Company’s homebuilding senior notes and the homebuilding 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 associated with the Forestar land development operation, the financial services operations and certain other subsidiaries do not guarantee the Company’s homebuilding senior notes or the homebuilding 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) its ceasing to guarantee any of the Company’s publicly traded debt securities and ceasing to guarantee any of the Company’s obligations under the homebuilding revolving credit facility.

NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Balance Sheet

March 31, 2019



	D.R. Horton, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
	(In millions)
ASSETS
Cash and cash equivalents	$	405.4	$	104.3	$	189.1	$	—		$	698.8
Restricted cash	7.6		1.8		23.0		—			32.4
Investment in subsidiaries	6,739.8		—		—		(6,739.8		)	—
Inventories	4,458.3		6,527.4		955.2		(20.6		)	11,920.3
Mortgage loans held for sale	—		—		796.5		—			796.5
Deferred income taxes, net	52.1		92.3		24.6		2.9			171.9
Property and equipment, net	112.2		76.8		253.3		(4.4		)	437.9
Other assets	328.7		402.5		129.6		(75.1		)	785.7
Goodwill	—		134.3		29.2		—			163.5
Intercompany receivables	596.9		—		—		(596.9		)	—
Total Assets	$	12,701.0	$	7,339.4	$	2,400.5	$	(7,433.9	)	$	15,007.0
LIABILITIES & EQUITY
Accounts payable and other liabilities	$	625.2	$	1,034.1	$	272.1	$	(80.8	)	$	1,850.6
Intercompany payables	—		298.9		298.0		(596.9		)	—
Notes payable	2,697.8		1.9		922.7		—			3,622.4
Total Liabilities	3,323.0		1,334.9		1,492.8		(677.7		)	5,473.0
Stockholders’ equity	9,378.0		6,004.5		735.7		(6,757.9		)	9,360.3
Noncontrolling interests	—		—		172.0		1.7			173.7
Total Equity	9,378.0		6,004.5		907.7		(6,756.2		)	9,534.0
Total Liabilities & Equity	$	12,701.0	$	7,339.4	$	2,400.5	$	(7,433.9	)	$	15,007.0

NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Balance Sheet

September 30, 2018



	D.R. Horton, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
	(In millions)
ASSETS
Cash and cash equivalents	$	908.1	$	158.7	$	406.3	$	—		$	1,473.1
Restricted cash	6.6		2.0		24.3		—			32.9
Investment in subsidiaries	6,344.9		—		—		(6,344.9		)	—
Inventories	4,037.1		5,824.1		545.0		(11.2		)	10,395.0
Mortgage loans held for sale	—		—		796.4		—			796.4
Deferred income taxes, net	69.2		105.0		17.3		2.5			194.0
Property and equipment, net	111.2		66.1		230.7		(6.9		)	401.1
Other assets	306.6		361.3		90.2		(45.2		)	712.9
Goodwill	—		80.0		29.2		—			109.2
Intercompany receivables	246.2		27.3		—		(273.5		)	—
Total Assets	$	12,029.9	$	6,624.5	$	2,139.4	$	(6,679.2	)	$	14,114.6
LIABILITIES & EQUITY
Accounts payable and other liabilities	$	590.8	$	1,000.4	$	210.1	$	(49.1	)	$	1,752.2
Intercompany payables	—		—		273.5		(273.5		)	—
Notes payable	2,443.9		2.1		757.5		—			3,203.5
Total Liabilities	3,034.7		1,002.5		1,241.1		(322.6		)	4,955.7
Stockholders’ equity	8,995.2		5,622.0		722.8		(6,355.6		)	8,984.4
Noncontrolling interests	—		—		175.5		(1.0		)	174.5
Total Equity	8,995.2		5,622.0		898.3		(6,356.6		)	9,158.9
Total Liabilities & Equity	$	12,029.9	$	6,624.5	$	2,139.4	$	(6,679.2	)	$	14,114.6

NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Three Months Ended March 31, 2019



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Revenues	$	1,575.2		$	2,419.7		$	173.5		$	(39.7	)	$	4,128.7
Cost of sales	1,249.8			1,989.5			52.4			(35.0		)	3,256.7
Selling, general and administrative expense	193.3			164.9			86.0			—			444.2
Gain on sale of assets	—			—			(26.8		)	(2.5		)	(29.3		)
Other (income) expense	(1.1		)	(0.4		)	(4.2		)	—			(5.7		)
Income before income taxes	133.2			265.7			66.1			(2.2		)	462.8
Income tax expense	31.4			62.3			15.2			(0.5		)	108.4
Equity in net income of subsidiaries, net of tax	253.5			—			—			(253.5		)	—
Net income	355.3			203.4			50.9			(255.2		)	354.4
Net income attributable to noncontrolling interests	—			—			0.6			2.5			3.1
Net income attributable to D.R. Horton, Inc.	$	355.3		$	203.4		$	50.3		$	(257.7	)	$	351.3

NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Six Months Ended March 31, 2019



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Revenues	$	2,910.9		$	4,501.4		$	304.1		$	(68.7	)	$	7,647.7
Cost of sales	2,307.0			3,670.9			90.4			(60.5		)	6,007.8
Selling, general and administrative expense	351.2			330.8			165.0			—			847.0
Gain on sale of assets	(2.0		)	—			(26.8		)	(2.5		)	(31.3		)
Other (income) expense	(2.0		)	(0.8		)	(11.5		)	—			(14.3		)
Income before income taxes	256.7			500.5			87.0			(5.7		)	838.5
Income tax expense	60.6			118.1			20.0			(1.3		)	197.4
Equity in net income of subsidiaries, net of tax	449.4			—			—			(449.4		)	—
Net income	645.5			382.4			67.0			(453.8		)	641.1
Net income attributable to noncontrolling interests	—			—			—			2.7			2.7
Net income attributable to D.R. Horton, Inc.	$	645.5		$	382.4		$	67.0		$	(456.5	)	$	638.4

NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Three Months Ended March 31, 2018



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Revenues	$	1,288.0		$	2,402.7		$	117.5		$	(13.5	)	$	3,794.7
Cost of sales	1,026.2			1,926.9			19.4			(10.9		)	2,961.6
Selling, general and administrative expense	156.9			164.8			79.2			—			400.9
Gain on sale of assets	—			—			(1.1		)	—			(1.1		)
Other (income) expense	(1.7		)	(0.7		)	(9.1		)	—			(11.5		)
Income before income taxes	106.6			311.7			29.1			(2.6		)	444.8
Income tax expense	20.7			67.4			5.9			—			94.0
Equity in net income of subsidiaries, net of tax	267.5			—			—			(267.5		)	—
Net income	353.4			244.3			23.2			(270.1		)	350.8
Net loss attributable to noncontrolling interests	—			—			(0.2		)	—			(0.2		)
Net income attributable to D.R. Horton, Inc.	$	353.4		$	244.3		$	23.4		$	(270.1	)	$	351.0

NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Operations

Six Months Ended March 31, 2018



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
Revenues	$	2,451.9		$	4,455.1		$	234.1		$	(13.5	)	$	7,127.6
Cost of sales	1,941.6			3,567.0			44.1			(10.9		)	5,541.8
Selling, general and administrative expense	309.1			316.4			159.6			—			785.1
Gain on sale of assets	—			—			(14.5		)	—			(14.5		)
Other (income) expense	(2.1		)	(0.7		)	(18.1		)	—			(20.9		)
Income before income taxes	203.3			572.4			63.0			(2.6		)	836.1
Income tax expense	71.8			205.3			19.3			—			296.4
Equity in net income of subsidiaries, net of tax	410.8			—			—			(410.8		)	—
Net income	$	542.3		$	367.1		$	43.7		$	(413.4	)	$	539.7
Net loss attributable to noncontrolling interests	—			—			(0.6		)	—			(0.6		)
Net income attributable to D.R. Horton, Inc.	$	542.3		$	367.1		$	44.3		$	(413.4	)	$	540.3

NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Cash Flows

Six Months Ended March 31, 2019



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
OPERATING ACTIVITIES
Net cash used in operating activities	$	(76.5	)	$	(61.5	)	$	(245.0	)	$	(78.7	)	$	(461.7	)
INVESTING ACTIVITIES
Expenditures for property and equipment	(16.7		)	(16.9		)	(36.2		)	—			(69.8		)
Proceeds from sale of assets	10.4			—			73.4			—			83.8
Expenditures related to multi-family rental properties	—			—			(28.3		)	—			(28.3		)
Return of investment in unconsolidated entities	—			—			4.4			—			4.4
Net principal increase of other mortgage loans and real estate owned	—			—			(1.6		)	—			(1.6		)
Intercompany advances	(42.4		)	—			—			42.4			—
Payments related to business acquisitions	(301.3		)	—			(8.3		)	—			(309.6		)
Net cash (used in) provided by investing activities	(350.0		)	(16.9		)	3.4			42.4			(321.1		)
FINANCING ACTIVITIES
Proceeds from notes payable	1,775.0			—			40.0			—			1,815.0
Repayment of notes payable	(1,524.9		)	(1.1		)	(5.0		)	—			(1,531.0		)
Advances on mortgage repurchase facility, net	—			—			53.0			—			53.0
Intercompany advances	—			24.9			17.5			(42.4		)	—
Proceeds from stock associated with certain employee benefit plans	22.3			—			—			—			22.3
Cash paid for shares withheld for taxes	(19.5		)	—			—			—			(19.5		)
Cash dividends paid	(111.9		)	—			(78.7		)	78.7			(111.9		)
Repurchases of common stock	(216.2		)	—			—			—			(216.2		)
Distributions to noncontrolling interests, net	—			—			(3.7		)	—			(3.7		)
Net cash (used in) provided by financing activities	(75.2		)	23.8			23.1			36.3			8.0
Decrease in cash, cash equivalents and restricted cash	(501.7		)	(54.6		)	(218.5		)	—			(774.8		)
Cash, cash equivalents and restricted cash at beginning of period	914.7			160.7			430.6			—			1,506.0
Cash, cash equivalents and restricted cash at end of period	$	413.0		$	106.1		$	212.1		$	—		$	731.2

NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)

Consolidating Statement of Cash Flows

Six Months Ended March 31, 2018



	D.R. Horton, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In millions)
OPERATING ACTIVITIES
Net cash (used in) provided by operating activities	$	(147.3	)	$	269.9		$	(184.4	)	$	(37.0	)	$	(98.8	)
INVESTING ACTIVITIES
Expenditures for property and equipment	(21.4		)	(15.0		)	(3.1		)	—			(39.5		)
Proceeds from sale of assets	—			—			253.4			—			253.4
Expenditures related to multi-family rental properties	—			—			(44.5		)	5.0			(39.5		)
Return of investment in unconsolidated entities	—			—			15.1			—			15.1
Intercompany advances	266.3			—			—			(266.3		)	—
Payments related to business acquisitions, net of cash acquired	(560.0		)	—			401.9			—			(158.1		)
Net cash (used in) provided by investing activities	(315.1		)	(15.0		)	622.8			(261.3		)	31.4
FINANCING ACTIVITIES
Proceeds from notes payable	1,912.3			—			1.3			—			1,913.6
Repayment of notes payable	(1,740.2		)	(2.3		)	(10.0		)	—			(1,752.5		)
Advances on mortgage repurchase facility, net	—			—			69.8			—			69.8
Intercompany advances	—			(291.0		)	24.7			266.3			—
Proceeds from stock associated with certain employee benefit plans	32.7			—			—			—			32.7
Cash paid for shares withheld for taxes	(10.3		)	—			—			—			(10.3		)
Cash dividends paid	(94.1		)	—			(32.0		)	32.0			(94.1		)
Repurchases of common stock	(47.9		)	—			—			—			(47.9		)
Distributions to noncontrolling interests, net	—			—			(2.0		)	—			(2.0		)
Net cash provided by (used in) financing activities	52.5			(293.3		)	51.8			298.3			109.3
(Decrease) increase in cash, cash equivalents and restricted cash	(409.9		)	(38.4		)	490.2			—			41.9
Cash, cash equivalents and restricted cash at beginning of period	788.7			156.0			79.6			—			1,024.3
Cash, cash equivalents and restricted cash at end of period	$	378.8		$	117.6		$	569.8		$	—		$	1,066.2