Supplemental Guarantor information

All of our senior notes are guaranteed jointly and severally on a senior basis by each of the Company's wholly-owned Homebuilding subsidiaries and certain other wholly-owned subsidiaries (collectively, the “Guarantors”). Such guaranties are full and unconditional. Supplemental consolidating financial information of the Company, including such information for the Guarantors, is presented below. Investments in subsidiaries are presented using the equity method of accounting. Separate financial statements of the Guarantors are not provided as the consolidating financial information contained herein provides a more meaningful disclosure to allow investors to determine the nature of the assets held by, and the operations of, the combined groups.

CONDENSED CONSOLIDATING BALANCE SHEET

JUNE 30, 2014

($000’s omitted)



	Unconsolidated							Eliminating Entries			Consolidated PulteGroup, Inc.
	PulteGroup, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminating Entries			Consolidated PulteGroup, Inc.
ASSETS
Cash and equivalents	$	229,437	$	883,148		$	58,349	$	—		$	1,170,934
Restricted cash	86,865		2,650			12,092		—			101,607
House and land inventory	—		4,196,250			871		—			4,197,121
Land held for sale	—		79,294			1,034		—			80,328
Land, not owned, under option agreements	—		27,294			—		—			27,294
Residential mortgage loans available- for-sale	—		—			221,607		—			221,607
Investments in unconsolidated entities	71		36,008			4,052		—			40,131
Other assets	33,546		394,187			69,257		—			496,990
Intangible assets	—		129,598			—		—			129,598
Deferred tax assets, net	1,989,109		17			12,600		—			2,001,726
Investments in subsidiaries and intercompany accounts, net	4,367,644		321,859			5,602,526		(10,292,029		)	—
	$	6,706,672	$	6,070,305		$	5,982,388	$	(10,292,029	)	$	8,467,336
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, customer deposits, accrued and other liabilities	$	59,933	$	1,523,482		$	178,677	$	—		$	1,762,092
Income tax liabilities	193,147		(1		)	—		—			193,146
Financial Services debt	—		—			58,506		—			58,506
Senior notes	1,815,548		—			—		—			1,815,548
Total liabilities	2,068,628		1,523,481			237,183		—			3,829,292
Total shareholders’ equity	4,638,044		4,546,824			5,745,205		(10,292,029		)	4,638,044
	$	6,706,672	$	6,070,305		$	5,982,388	$	(10,292,029	)	$	8,467,336

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2013

($000’s omitted)



	Unconsolidated							Eliminating Entries			Consolidated PulteGroup, Inc.
	PulteGroup, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminating Entries			Consolidated PulteGroup, Inc.
ASSETS
Cash and equivalents	$	262,364	$	1,188,999		$	128,966	$	—		$	1,580,329
Restricted cash	58,699		2,635			11,381		—			72,715
House and land inventory	—		3,977,851			710		—			3,978,561
Land held for sale	—		60,701			1,034		—			61,735
Land, not owned, under option agreements	—		24,024			—		—			24,024
Residential mortgage loans available- for-sale	—		—			287,933		—			287,933
Investments in unconsolidated entities	68		41,319			3,936		—			45,323
Other assets	50,251		359,228			51,142		—			460,621
Intangible assets	—		136,148			—		—			136,148
Deferred tax assets, net	2,074,137		17			12,600		—			2,086,754
Investments in subsidiaries and intercompany accounts, net	4,532,950		(16,513		)	5,939,784		(10,456,221		)	—
	$	6,978,469	$	5,774,409		$	6,437,486	$	(10,456,221	)	$	8,734,143
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, customer deposits, accrued and other liabilities	$	65,334	$	1,413,752		$	236,258	$	—		$	1,715,344
Income tax liabilities	206,015		—			—		—			206,015
Financial Services debt	—		—			105,664		—			105,664
Senior notes	2,058,168		—			—		—			2,058,168
Total liabilities	2,329,517		1,413,752			341,922		—			4,085,191
Total shareholders’ equity	4,648,952		4,360,657			6,095,564		(10,456,221		)	4,648,952
	$	6,978,469	$	5,774,409		$	6,437,486	$	(10,456,221	)	$	8,734,143

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the three months ended June 30, 2014

($000’s omitted)



	Unconsolidated												Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	1,246,462		$	—		$	—		$	1,246,462
Land sale revenues	—			8,527			—			—			8,527
	—			1,254,989			—			—			1,254,989
Financial Services	—			357			30,841			—			31,198
	—			1,255,346			30,841			—			1,286,187
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			952,692			—			—			952,692
Land sale cost of revenues	—			6,832			—			—			6,832
	—			959,524			—			—			959,524
Financial Services expenses	197			81			21,836			—			22,114
Selling, general and administrative expenses	—			229,146			621			—			229,767
Other expense (income), net	(16		)	9,117			223			—			9,324
Interest income	(118		)	(994		)	(3		)	—			(1,115		)
Interest expense	203			—			—			—			203
Equity in (earnings) loss of unconsolidated entities	(1		)	(1,288		)	(22		)	—			(1,311		)
Intercompany interest	566			2,004			(2,570		)	—			—
Income (loss) before income taxes and equity in income (loss) of subsidiaries	(831		)	57,756			10,756			—			67,681
Income tax expense (benefit)	(3,795		)	18,868			10,728			—			25,801
Income (loss) before equity in income (loss) of subsidiaries	2,964			38,888			28			—			41,880
Equity in income (loss) of subsidiaries	38,916			264			48,919			(88,099		)	—
Net income (loss)	41,880			39,152			48,947			(88,099		)	41,880
Other comprehensive income	21			—			—			—			21
Comprehensive income (loss)	$	41,901		$	39,152		$	48,947		$	(88,099	)	$	41,901

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the three months ended June 30, 2013

($000’s omitted)



	Unconsolidated												Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	1,219,675		$	—		$	—		$	1,219,675
Land sale revenues	—			20,385			—			—			20,385
	—			1,240,060			—			—			1,240,060
Financial Services	—			492			38,870			—			39,362
	—			1,240,552			38,870			—			1,279,422
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			990,818			—			—			990,818
Land sale cost of revenues	—			20,710			—			—			20,710
	—			1,011,528			—			—			1,011,528
Financial Services expenses	208			80			22,747			—			23,035
Selling, general and administrative expenses	—			149,975			556			—			150,531
Other expense (income), net	23,057			33,118			1,164			—			57,339
Interest income	(88		)	(1,003		)	(21		)	—			(1,112		)
Interest expense	166			—			—			—			166
Equity in (earnings) loss of unconsolidated entities	—			(319		)	(76		)	—			(395		)
Intercompany interest	415			1			(416		)	—			—

Income (loss) before income taxes and equity in income (loss) of subsidiaries	(23,758		)	47,172			14,916			—			38,330
Income tax expense (benefit)	(24		)	(3,572		)	5,509			—			1,913
Income (loss) before equity in income (loss) of subsidiaries	(23,734		)	50,744			9,407			—			36,417
Equity in income (loss) of subsidiaries	60,151			10,555			26,502			(97,208		)	—
Net income (loss)	36,417			61,299			35,909			(97,208		)	36,417
Other comprehensive income	148			—			—			—			148
Comprehensive income (loss)	$	36,565		$	61,299		$	35,909		$	(97,208	)	$	36,565

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the six months ended June 30, 2014

($000’s omitted)



	Unconsolidated												Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	2,334,477		$	—		$	—		$	2,334,477
Land sale revenues	—			14,511			—			—			14,511
	—			2,348,988			—			—			2,348,988
Financial Services	—			735			55,358			—			56,093
	—			2,349,723			55,358			—			2,405,081
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			1,781,295			—			—			1,781,295
Land sale cost of revenues	—			11,843			—			—			11,843
	—			1,793,138			—			—			1,793,138
Financial Services expenses	397			158			24,881			—			25,436
Selling, general and administrative expenses	—			373,871			784			—			374,655
Other expense, net	8,552			14,098			505			—			23,155
Interest income	(239		)	(1,965		)	(22		)	—			(2,226		)
Interest expense	416			—			—			—			416
Equity in (earnings) loss of unconsolidated entities	(4		)	(7,090		)	(108		)	—			(7,202		)
Intercompany interest	819			3,948			(4,767		)	—			—
Income (loss) before income taxes and equity in income (loss) of subsidiaries	(9,941		)	173,565			34,085			—			197,709
Income tax expense (benefit)	(3,877		)	71,594			13,293			—			81,010
Income (loss) before equity in income (loss) of subsidiaries	(6,064		)	101,971			20,792			—			116,699
Equity in income (loss) of subsidiaries	122,763			21,151			109,135			(253,049		)	—
Net income (loss)	116,699			123,122			129,927			(253,049		)	116,699
Other comprehensive income	61			—			—			—			61
Comprehensive income	$	116,760		$	123,122		$	129,927		$	(253,049	)	$	116,760

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the six months ended June 30, 2013

($000’s omitted)



	Unconsolidated												Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	2,319,427		$	—		$	—		$	2,319,427
Land sale revenues	—			46,516			—			—			46,516
	—			2,365,943			—			—			2,365,943
Financial Services	—			1,111			75,124			—			76,235
	—			2,367,054			75,124			—			2,442,178
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			1,892,288			—			—			1,892,288
Land sale cost of revenues	—			42,728			—			—			42,728
	—			1,935,016			—			—			1,935,016
Financial Services expenses	416			224			44,983			—			45,623
Selling, general and administrative expenses	—			278,866			1,291			—			280,157
Other expense (income), net	23,041			37,521			1,549			—			62,111
Interest income	(165		)	(2,058		)	(62		)	—			(2,285		)
Interest expense	373			—			—			—			373
Equity in (earnings) loss of unconsolidated entities	1,460			(346		)	(611		)	—			503
Intercompany interest	175,280			(172,398		)	(2,882		)	—			—
Income (loss) before income taxes and equity in income (loss) of subsidiaries	(200,405		)	290,229			30,856			—			120,680
Income tax expense (benefit)	129			(7,966		)	10,338			—			2,501
Income (loss) before equity in income (loss) of subsidiaries	(200,534		)	298,195			20,518			—			118,179
Equity in income (loss) of subsidiaries	318,713			21,976			201,461			(542,150		)	—
Net income (loss)	118,179			320,171			221,979			(542,150		)	118,179
Other comprehensive income	196			—			—			—			196
Comprehensive income (loss)	$	118,375		$	320,171		$	221,979		$	(542,150	)	$	118,375

CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended June 30, 2014

($000’s omitted)



	Unconsolidated											Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries		Consolidated PulteGroup, Inc.
Net cash provided by (used in) operating activities	$	59,307		$	(19,311	)	$	34,286		$	—	$	74,282
Cash flows from investing activities:
Distributions from unconsolidated entities	—			7,577			—			—		7,577
Investments in unconsolidated entities	—			—			(9		)	—		(9		)
Net change in loans held for investment	—			—			(6,791		)	—		(6,791		)
Change in restricted cash related to letters of credit	(28,166		)	—			—			—		(28,166		)
Proceeds from the sale of property and equipment	—			98			—			—		98
Capital expenditures	—			(30,908		)	(2,113		)			(33,021		)
Net cash provided by (used in) investing activities	(28,166		)	(23,233		)	(8,913		)	—		(60,312		)
Cash flows from financing activities:
Financial Services borrowings (repayments)	—			—			(47,158		)	—		(47,158		)
Other borrowings (repayments)	(249,765		)	9,632			—			—		(240,133		)
Stock option exercises	5,789			—			—			—		5,789
Stock repurchases	(103,711		)	—			—			—		(103,711		)
Dividends paid	(38,152		)	—			—			—		(38,152		)
Intercompany activities, net	321,771			(272,939		)	(48,832		)			—
Net cash provided by (used in) financing activities	(64,068		)	(263,307		)	(95,990		)	—		(423,365		)
Net increase (decrease) in cash and equivalents	(32,927		)	(305,851		)	(70,617		)	—		(409,395		)
Cash and equivalents at beginning of period	262,364			1,188,999			128,966			—		1,580,329
Cash and equivalents at end of period	$	229,437		$	883,148		$	58,349		$	—	$	1,170,934

CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended June 30, 2013

($000’s omitted)



	Unconsolidated											Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries		Consolidated PulteGroup, Inc.
Net cash provided by (used in) operating activities	$	(167,506	)	$	429,101		$	73,470		$	—	$	335,065
Cash flows from investing activities:
Distributions from unconsolidated entities	—			200			—			—		200
Investments in unconsolidated entities	—			(807		)	—			—		(807		)
Net change in loans held for investment	—			—			18			—		18
Change in restricted cash related to letters of credit	4,222			—			—			—		4,222
Proceeds from the sale of property and equipment	—			9			—			—		9
Capital expenditures	—			(10,029		)	(988		)	—		(11,017		)
Net cash provided by (used in) investing activities	4,222			(10,627		)	(970		)	—		(7,375		)
Cash flows from financing activities:
Financial Services borrowings (repayments)	—			—			(78,929		)	—		(78,929		)
Other borrowings (repayments)	(454,335		)	1,385			—			—		(452,950		)
Stock option exercises	18,544			—			—			—		18,544
Stock repurchases	(6,447		)	—			—			—		(6,447		)
Intercompany activities, net	650,741			(547,848		)	(102,893		)	—		—
Net cash provided by (used in) financing activities	208,503			(546,463		)	(181,822		)	—		(519,782		)
Net increase (decrease) in cash and equivalents	45,219			(127,989		)	(109,322		)	—		(192,092		)
Cash and equivalents at beginning of period	146,168			1,063,943			194,649			—		1,404,760
Cash and equivalents at end of period	$	191,387		$	935,954		$	85,327		$	—	$	1,212,668