Supplemental consolidating financial information of Toll Brothers, Inc., the Subsidiary Issuer, the Guarantor Subsidiaries, the Nonguarantor Subsidiaries, and the eliminations to arrive at Toll Brothers, Inc. on a consolidated basis is presented below ($ amounts in thousands).

Condensed Consolidating Balance Sheet at January 31, 2016:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		178,762		157,482	—		336,244
Restricted cash	15,192				255		13,903			29,350
Inventory					6,756,683		423,367			7,180,050
Property, construction and office equipment, net					119,303		15,443			134,746
Receivables, prepaid expenses and other assets	108				175,176		169,600	(51,417	)	293,467
Mortgage loans held for sale							73,145			73,145
Customer deposits held in escrow					57,012		1,290			58,302
Investments in unconsolidated entities					109,031		305,833			414,864
Investments in foreclosed real estate and distressed loans							48,576			48,576
Investments in and advances to consolidated entities	4,004,727		2,740,891		4,740			(6,750,358	)	—
Deferred tax assets, net of valuation allowances	194,693									194,693
	4,214,720		2,740,891		7,400,962		1,208,639	(6,801,775	)	8,763,437
LIABILITIES AND EQUITY
Liabilities
Loans payable					615,298					615,298
Senior notes			2,673,316					17,573		2,690,889
Mortgage company loan facility							63,907			63,907
Customer deposits					293,703		7,579			301,282
Accounts payable					263,955		497			264,452
Accrued expenses			38,160		352,643		269,844	(53,570	)	607,077
Advances from consolidated entities					1,870,150		747,531	(2,617,681	)	—
Income taxes payable	64,567									64,567
Total liabilities	64,567		2,711,476		3,395,749		1,089,358	(2,653,678	)	4,607,472
Equity
Stockholders’ equity
Common stock	1,779				48		3,006	(3,054	)	1,779
Additional paid-in capital	718,412		49,400				1,734	(51,134	)	718,412
Retained earnings (deficits)	3,668,382		(19,985	)	4,005,169		108,725	(4,093,909	)	3,668,382
Treasury stock, at cost	(235,654	)								(235,654	)
Accumulated other comprehensive loss	(2,766	)			(4	)				(2,770	)
Total stockholders’ equity	4,150,153		29,415		4,005,213		113,465	(4,148,097	)	4,150,149
Noncontrolling interest							5,816			5,816
Total equity	4,150,153		29,415		4,005,213		119,281	(4,148,097	)	4,155,965
	4,214,720		2,740,891		7,400,962		1,208,639	(6,801,775	)	8,763,437

Condensed Consolidating Balance Sheet at October 31, 2015:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		783,599		135,394	—		918,993
Marketable securities							10,001			10,001
Restricted cash	15,227				499		1,069			16,795
Inventory					6,530,698		466,818			6,997,516
Property, construction and office equipment, net					121,178		15,577			136,755
Receivables, prepaid expenses and other assets	52				149,268		178,680	(43,870	)	284,130
Mortgage loans held for sale							123,175			123,175
Customer deposits held in escrow					51,767		4,338			56,105
Investments in unconsolidated entities					115,999		296,861			412,860
Investments in foreclosed real estate and distressed loans							51,730			51,730
Investments in and advances to consolidated entities	4,067,722		2,726,428		4,740			(6,798,890	)	—
Deferred tax assets, net of valuation allowances	198,455									198,455
	4,281,456		2,726,428		7,757,748		1,283,643	(6,842,760	)	9,206,515
LIABILITIES AND EQUITY
Liabilities
Loans payable					1,000,439					1,000,439
Senior notes			2,669,860					19,941		2,689,801
Mortgage company loan facility							100,000			100,000
Customer deposits					271,124		13,185			284,309
Accounts payable					236,436		517			236,953
Accrued expenses			25,699		361,089		266,411	(45,133	)	608,066
Advances from consolidated entities					1,932,075		850,374	(2,782,449	)	—
Income taxes payable	58,868									58,868
Total liabilities	58,868		2,695,559		3,801,163		1,230,487	(2,807,641	)	4,978,436
Equity
Stockholders’ equity
Common stock	1,779				48		3,006	(3,054	)	1,779
Additional paid-in capital	728,125		49,400				1,734	(51,134	)	728,125
Retained earnings (deficits)	3,595,202		(18,531	)	3,956,568		42,894	(3,980,931	)	3,595,202
Treasury stock, at cost	(100,040	)								(100,040	)
Accumulated other comprehensive loss	(2,478	)			(31	)				(2,509	)
Total stockholders’ equity	4,222,588		30,869		3,956,585		47,634	(4,035,119	)	4,222,557
Noncontrolling interest							5,522			5,522
Total equity	4,222,588		30,869		3,956,585		53,156	(4,035,119	)	4,228,079
	4,281,456		2,726,428		7,757,748		1,283,643	(6,842,760	)	9,206,515

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three months ended January 31, 2016:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					784,596	170,223		(26,253	)	928,566
Cost of revenues					624,801	90,087		(2,577	)	712,311
Selling, general and administrative	12		969		125,905	17,973		(23,063	)	121,796
	12		969		750,706	108,060		(25,640	)	834,107
Income (loss) from operations	(12	)	(969	)	33,890	62,163		(613	)	94,459
Other:
Income from unconsolidated entities					2,997	5,641				8,638
Other income – net	2,391				8,169	4,193		(1,033	)	13,720
Intercompany interest income			36,497					(36,497	)	—
Interest expense			(37,895	)		(248	)	38,143		—
Income from subsidiaries	114,438				69,382			(183,820	)	—
Income (loss) before income taxes	116,817		(2,367	)	114,438	71,749		(183,820	)	116,817
Income tax provision (benefit)	43,637		(912	)	44,104	27,652		(70,844	)	43,637
Net income (loss)	73,180		(1,455	)	70,334	44,097		(112,976	)	73,180
Other comprehensive (loss) income	(288	)			27					(261	)
Total comprehensive income (loss)	72,892		(1,455	)	70,361	44,097		(112,976	)	72,919

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three months ended January 31, 2015:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					862,154		15,602		(24,304	)	853,452
Cost of revenues					652,212		1,666		(3,846	)	650,032
Selling, general and administrative	14		908		112,043		13,389		(20,040	)	106,314
	14		908		764,255		15,055		(23,886	)	756,346
Income (loss) from operations	(14	)	(908	)	97,899		547		(418	)	97,106
Other:
Income from unconsolidated entities					4,722		179				4,901
Other income – net	2,370				10,233		10,585		(1,172	)	22,016
Intercompany interest income			36,193						(36,193	)	—
Interest expense			(37,652	)			(131	)	37,783		—
Income from subsidiaries	121,667				8,813				(130,480	)	—
Income (loss) before income taxes	124,023		(2,367	)	121,667		11,180		(130,480	)	124,023
Income tax provision (benefit)	42,698		(891	)	45,808		4,209		(49,126	)	42,698
Net income (loss)	81,325		(1,476	)	75,859		6,971		(81,354	)	81,325
Other comprehensive loss	(178	)			(5	)					(183	)
Total comprehensive income (loss)	81,147		(1,476	)	75,854		6,971		(81,354	)	81,142

Condensed Consolidating Statement of Cash Flows for the three months ended January 31, 2016:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash (used in) provided by operating activities	18,482		14,528		(178,283	)	132,051		(10,003	)	(23,225	)
Cash flow provided by (used in) investing activities:
Purchase of property and equipment - net					(1,667	)	74				(1,593	)
Sale and redemption of marketable securities							10,000				10,000
Investment in unconsolidated entities					(1,445	)	(10,393	)			(11,838	)
Return of investments in unconsolidated entities					12,167		2,637				14,804
Investment in foreclosed real estate and distressed loans							(694	)			(694	)
Return of investments in foreclosed real estate and distressed loans							5,321				5,321
Dividend received - intercompany					5,000				(5,000	)	—
Intercompany advances	126,587		(14,464	)					(112,123	)	—
Net cash provided by (used in) investing activities	126,587		(14,464	)	14,055		6,945		(117,123	)	16,000
Cash flow used in financing activities:
Debt issuance costs for senior notes			(64	)							(64	)
Proceeds from loans payable							339,854				339,854
Principal payments of loans payable					(394,592	)	(375,947	)			(770,539	)
Proceeds from stock-based benefit plans	4,769										4,769
Excess tax benefits from stock-based compensation	297										297
Purchase of treasury stock	(150,135	)									(150,135	)
Receipts related to noncontrolling interest, net							294				294
Dividend paid - intercompany							(5,000	)	5,000		—
Intercompany advances					(46,017	)	(76,109	)	122,126		—
Net cash used in financing activities	(145,069	)	(64	)	(440,609	)	(116,908	)	127,126		(575,524	)
Net (decrease) increase in cash and cash equivalents	—		—		(604,837	)	22,088		—		(582,749	)
Cash and cash equivalents, beginning of period	—		—		783,599		135,394		—		918,993
Cash and cash equivalents, end of period	—		—		178,762		157,482		—		336,244

Condensed Consolidating Statement of Cash Flows for the three months ended January 31, 2015:



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash (used in) provided by operating activities	(48,956	)	6,870		6,618		6,418		(3,998	)	(33,048	)
Cash flow (used in) provided by investing activities:
Purchase of property and equipment — net					(2,528	)	(356	)			(2,884	)
Sale and redemption of marketable securities					2,000						2,000
Investments in unconsolidated entities					(595	)	(18,089	)			(18,684	)
Return of investments in unconsolidated entities					1,500		4,840				6,340
Investment in foreclosed real estate and distressed loans							(1,468	)			(1,468	)
Return of investments in foreclosed real estate and distressed loans							6,592				6,592
Intercompany advances	35,559		(6,870	)					(28,689	)	—
Net cash (used in) provided by investing activities	35,559		(6,870	)	377		(8,481	)	(28,689	)	(8,104	)
Cash flow (used in) provided by financing activities:
Proceeds from loans payable							214,624				214,624
Principal payments of loans payable					(12,988	)	(259,346	)			(272,334	)
Proceeds from stock-based benefit plans	17,773										17,773
Excess tax benefits from stock-based compensation	1,866										1,866
Purchase of treasury stock	(6,242	)									(6,242	)
Receipts related to noncontrolling interest							50				50
Intercompany advances					(83,821	)	51,134		32,687		—
Net cash (used in) provided by financing activities	13,397		—		(96,809	)	6,462		32,687		(44,263	)
Net (decrease) increase in cash and cash equivalents	—		—		(89,814	)	4,399		—		(85,415	)
Cash and cash equivalents, beginning of period	—		—		455,714		130,601				586,315
Cash and cash equivalents, end of period	—		—		365,900		135,000		—		500,900