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).

Consolidating Balance Sheet at October 31, 2016



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		583,440	50,275	—		633,715
Restricted cash and investments	11,708					19,583			31,291
Inventory					6,896,205	457,806	(44	)	7,353,967
Property, construction, and office equipment, net					153,663	15,913			169,576
Receivables, prepaid expenses, and other assets	77				319,319	299,978	(36,616	)	582,758
Mortgage loans held for sale						248,601			248,601
Customer deposits held in escrow					50,079	2,978			53,057
Investments in unconsolidated entities					101,999	394,412			496,411
Investments in and advances to consolidated entities	4,112,876		2,741,160		20,519	90,671	(6,965,226	)	—
Deferred tax assets, net of valuation allowances	167,413								167,413
	4,292,074		2,741,160		8,125,224	1,580,217	(7,001,886	)	9,736,789
LIABILITIES AND EQUITY
Liabilities
Loans payable					871,079				871,079
Senior notes			2,683,823				10,549		2,694,372
Mortgage company loan facility						210,000			210,000
Customer deposits					292,794	16,305			309,099
Accounts payable					280,107	1,848			281,955
Accrued expenses			32,559		610,958	469,527	(40,744	)	1,072,300
Advances from consolidated entities					1,737,682	747,026	(2,484,708	)	—
Income taxes payable	62,782								62,782
Total liabilities	62,782		2,716,382		3,792,620	1,444,706	(2,514,903	)	5,501,587
Equity
Stockholders’ equity
Common stock	1,779				48	3,006	(3,054	)	1,779
Additional paid-in capital	728,464		49,400			6,734	(56,134	)	728,464
Retained earnings	3,977,297		(24,622	)	4,332,556	119,861	(4,427,795	)	3,977,297
Treasury stock, at cost	(474,912	)							(474,912	)
Accumulated other comprehensive loss	(3,336	)							(3,336	)
Total stockholders’ equity	4,229,292		24,778		4,332,604	129,601	(4,486,983	)	4,229,292
Noncontrolling interest						5,910			5,910
Total equity	4,229,292		24,778		4,332,604	135,511	(4,486,983	)	4,235,202
	4,292,074		2,741,160		8,125,224	1,580,217	(7,001,886	)	9,736,789

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 and investments	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		230,410	(43,870	)	335,860
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 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	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

Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2016



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					4,984,356	317,018		(131,866	)	5,169,508
Cost of revenues					4,000,112	163,970		(20,017	)	4,144,065
Selling, general and administrative	75		3,809		558,686	73,488		(100,676	)	535,382
	75		3,809		4,558,798	237,458		(120,693	)	4,679,447
Income (loss) from operations	(75	)	(3,809	)	425,558	79,560		(11,173	)	490,061
Other:
Income from unconsolidated entities					16,913	23,835				40,748
Other income - net	9,501				27,873	17,456		3,388		58,218
Intercompany interest income			145,828					(145,828	)	—
Interest expense			(151,410	)		(2,203	)	153,613		—
Income from consolidated subsidiaries	579,601				109,257			(688,858	)	—
Income (loss) before income taxes	589,027		(9,391	)	579,601	118,648		(688,858	)	589,027
Income tax provision (benefit)	206,932		(3,299	)	203,614	41,681		(241,996	)	206,932
Net income (loss)	382,095		(6,092	)	375,987	76,967		(446,862	)	382,095
Other comprehensive (loss) income	(858	)			31					(827	)
Total comprehensive income (loss)	381,237		(6,092	)	376,018	76,967		(446,862	)	381,268

Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2015



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					4,213,776	77,226		(119,754	)	4,171,248
Cost of revenues					3,276,078	12,909		(19,717	)	3,269,270
Selling, general and administrative	113		3,560		481,943	60,377		(90,885	)	455,108
	113		3,560		3,758,021	73,286		(110,602	)	3,724,378
Income (loss) from operations	(113	)	(3,560	)	455,755	3,940		(9,152	)	446,870
Other:
Income from unconsolidated entities					14,034	7,085				21,119
Other income - net	9,429				34,098	21,724		2,322		67,573
Intercompany interest income			137,362					(137,362	)	—
Interest expense			(143,193	)		(999	)	144,192		—
Income from consolidated subsidiaries	526,246				22,359			(548,605	)	—
Income (loss) before income taxes	535,562		(9,391	)	526,246	31,750		(548,605	)	535,562
Income tax provision (benefit)	172,395		(3,628	)	203,296	12,265		(211,933	)	172,395
Net income (loss)	363,167		(5,763	)	322,950	19,485		(336,672	)	363,167
Other comprehensive income (loss)	311				18					329
Total comprehensive income (loss)	363,478		(5,763	)	322,968	19,485		(336,672	)	363,496

Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2014



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries	Nonguarantor Subsidiaries		Eliminations		Consolidated
Revenues					3,950,509	79,097		(118,004	)	3,911,602
Cost of revenues					3,098,048	9,406		(25,617	)	3,081,837
Selling, general and administrative	132		3,670		457,808	55,721		(84,815	)	432,516
	132		3,670		3,555,856	65,127		(110,432	)	3,514,353
Income (loss) from operations	(132	)	(3,670	)	394,653	13,970		(7,572	)	397,249
Other:
Income from unconsolidated entities					40,588	553				41,141
Other income - net	9,403				40,594	15,416		779		66,192
Intercompany interest income			148,177					(148,177	)	—
Interest expense			(153,898	)		(1,072	)	154,970		—
Income from consolidated subsidiaries	495,311				19,476			(514,787	)	—
Income (loss) before income taxes	504,582		(9,391	)	495,311	28,867		(514,787	)	504,582
Income tax (benefit) provision	164,550		(3,609	)	190,349	11,094		(197,834	)	164,550
Net income (loss)	340,032		(5,782	)	304,962	17,773		(316,953	)	340,032
Other comprehensive (loss) income	(677	)			202	24				(451	)
Total comprehensive income (loss)	339,355		(5,782	)	305,164	17,797		(316,953	)	339,581

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2016



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	60,465		14,768		105,709		(12,330	)	(19,841	)	148,771
Cash flow provided by (used in) investing activities:
Purchase of property and equipment — net					(27,835	)	(591	)			(28,426	)
Sale and redemption of marketable securities							10,000				10,000
Investment in unconsolidated entities					(2,637	)	(67,018	)			(69,655	)
Return of investments in unconsolidated entities					32,857		14,949				47,806
Investment in distressed loans and foreclosed real estate							(1,133	)			(1,133	)
Return of investments in distressed loans and foreclosed real estate							49,619				49,619
Dividends received intercompany					5,000				(5,000	)	—
Investment paid intercompany					(5,000	)			5,000		—
Intercompany advances	323,207		(14,733	)					(308,474	)	—
Net cash provided by (used in) investing activities	323,207		(14,733	)	2,385		5,826		(308,474	)	8,211
Cash flow (used in) provided by financing activities:
Debt issuance costs for senior notes			(35	)							(35	)
Proceeds from loans payable					550,000		1,893,496				2,443,496
Debt issuance costs for loans payable					(4,868	)					(4,868	)
Principal payments of loans payable					(714,089	)	(1,783,496	)			(2,497,585	)
Proceeds from stock-based benefit plans	6,986										6,986
Excess tax benefits from stock-based compensation	2,114										2,114
Purchase of treasury stock	(392,772	)									(392,772	)
Receipts related to noncontrolling interest							404				404
Dividends paid intercompany							(5,000	)	5,000		—
Investment received intercompany							5,000		(5,000	)	—
Intercompany advances					(139,296	)	(189,019	)	328,315		—
Net cash (used in) provided by financing activities	(383,672	)	(35	)	(308,253	)	(78,615	)	328,315		(442,260	)
Net decrease in cash and cash equivalents	—		—		(200,159	)	(85,119	)	—		(285,278	)
Cash and cash equivalents, beginning of period	—		—		783,599		135,394		—		918,993
Cash and cash equivalents, end of period	—		—		583,440		50,275		—		633,715

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2015



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	45,366		2,156		100,487		(78,246	)	(9,581	)	60,182
Cash flow (used in) provided by investing activities:
Purchase of property and equipment — net					(10,181	)	734				(9,447	)
Sale and redemption of marketable securities					2,000						2,000
Investment in unconsolidated entities					(4,552	)	(119,388	)			(123,940	)
Return of investments in unconsolidated entities					23,213		16,553				39,766
Investment in distressed loans and foreclosed real estate							(2,624	)			(2,624	)
Return of investments in distressed loans and foreclosed real estate							37,625				37,625
Net increase in cash from purchase of joint venture interest					3,848						3,848
Intercompany advances	(29,620	)	(48,981	)					78,601		—
Net cash (used in) provided by investing activities	(29,620	)	(48,981	)	14,328		(67,100	)	78,601		(52,772	)
Cash flow provided by (used in) financing activities:
Net proceeds from issuance of senior notes			350,000								350,000
Debt issuance costs for senior notes			(3,175	)							(3,175	)
Proceeds from loans payable					400,000		1,554,432				1,954,432
Principal payments of loans payable					(113,745	)	(1,545,713	)			(1,659,458	)
Redemption of senior notes			(300,000	)							(300,000	)
Proceeds from stock-based benefit plans	39,514										39,514
Excess tax benefits from stock-based compensation	1,628										1,628
Purchase of treasury stock	(56,888	)									(56,888	)
Payments related to noncontrolling interest							(785	)			(785	)
Intercompany advances					(73,185	)	142,205		(69,020	)	—
Net cash provided by (used in) financing activities	(15,746	)	46,825		213,070		150,139		(69,020	)	325,268
Net increase in cash and cash equivalents	—		—		327,885		4,793		—		332,678
Cash and cash equivalents, beginning of period	—		—		455,714		130,601		—		586,315
Cash and cash equivalents, end of period	—		—		783,599		135,394		—		918,993

Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2014



	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	137,023		15,644		279,724		(102,540	)	(16,651	)	313,200
Cash flow (used in) provided by investing activities:
Purchase of property and equipment — net					(13,161	)	(1,913	)			(15,074	)
Purchase of marketable securities											—
Sale and redemption of marketable securities					40,242						40,242
Investment in unconsolidated entities					(16,683	)	(96,346	)			(113,029	)
Return of investments in unconsolidated entities					63,581		10,264				73,845
Investment in distressed loans and foreclosed real estate							(2,089	)			(2,089	)
Return of investments in distressed loans and foreclosed real estate							53,130				53,130
Acquisition of a business					(1,489,116	)					(1,489,116	)
Dividend received - intercompany					15,000				(15,000	)	—
Intercompany advances	(302,591	)	(342,945	)					645,536		—
Net cash used in investing activities	(302,591	)	(342,945	)	(1,400,137	)	(36,954	)	630,536		(1,452,091	)
Cash flow provided by (used in) financing activities:
Proceeds from issuance of senior notes			600,000								600,000
Debt issuance costs for senior notes			(4,739	)							(4,739	)
Proceeds from loans payable					1,156,300		1,073,071				2,229,371
Debt issuance costs for loans payable					(3,063	)					(3,063	)
Principal payments of loans payable					(704,320	)	(1,062,795	)			(1,767,115	)
Redemption of senior notes			(267,960	)							(267,960	)
Net proceeds from issuance of common stock	220,365										220,365
Proceeds from stock-based benefit plans	28,364										28,364
Excess tax benefits from stock-based compensation	7,593										7,593
Purchase of treasury stock	(90,754	)									(90,754	)
Receipts related to noncontrolling interest							172				172
Dividend paid - intercompany							(15,000	)	15,000		—
Intercompany advances					457,108		171,777		(628,885	)	—
Net cash provided by financing activities	165,568		327,301		906,025		167,225		(613,885	)	952,234
Net (decrease) increase in cash and cash equivalents	—		—		(214,388	)	27,731		—		(186,657	)
Cash and cash equivalents, beginning of period	—		—		670,102		102,870		—		772,972
Cash and cash equivalents, end of period	—		—		455,714		130,601		—		586,315