UNAUDITED QUARTERLY INFORMATION

(000’s omitted, except per share data)



	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Total (a)
2014
Homebuilding:
Revenues	$	1,093,999	$	1,254,989	$	1,561,273	$	1,786,464	$	5,696,725
Cost of revenues	833,614		959,524		1,198,908		1,374,951		4,366,997
Income before income taxes (b)	108,435		58,573		214,051		254,118		635,177
Financial Services:
Revenues	$	24,895	$	31,198	$	33,452	$	36,093	$	125,638
Income before income taxes (c)	21,594		9,108		10,877		13,002		54,581
Consolidated results:
Revenues	$	1,118,894	$	1,286,187	$	1,594,725	$	1,822,557	$	5,822,363
Income before income taxes	130,029		67,681		224,928		267,120		689,758
Income tax expense (d)	55,210		25,801		84,383		50,025		215,420
Net income	$	74,819	$	41,880	$	140,545	$	217,095	$	474,338
Net income per share:
Basic	$	0.19	$	0.11	$	0.37	$	0.58	$	1.27
Diluted	$	0.19	$	0.11	$	0.37	$	0.58	$	1.26
Number of shares used in calculation:
Basic	383,991		376,072		373,531		369,533		370,377
Effect of dilutive securities	3,815		3,592		3,761		3,734		3,725
Diluted	387,806		379,664		377,292		373,267		374,102


(a)	Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently.

(b)

Homebuilding income before income taxes includes losses on debt retirement of $8.6 million in the 1st Quarter; charges of $84.5 million to increase general liability insurance reserves in the 2nd Quarter; and costs associated with the relocation of our corporate headquarters of $8.7 million, offset by favorable adjustments of $15.2 million to decrease general liability insurance reserves in the 4th Quarter.


(c)	Financial Services expenses in the 1st Quarter includes a reduction in loan origination liabilities totaling $18.6 million.


(d)	Income tax expense in the 4th Quarter includes a benefit of $49.6 million related to the resolution of certain tax matters and the reversal of valuation allowance related to certain state deferred tax assets.

UNAUDITED QUARTERLY INFORMATION

(000’s omitted, except per share data)



	1st Quarter		2nd Quarter		3rd Quarter			4th Quarter		Total (a)
2013
Homebuilding:
Revenues	$	1,125,883	$	1,240,060	$	1,547,742		$	1,624,959	$	5,538,644
Cost of revenues	923,488		1,011,528		1,230,070			1,249,868		4,414,954
Income before income taxes (b)	68,037		21,971		163,594			225,511		479,113
Financial Services:
Revenues	$	36,873	$	39,362	$	34,336		$	30,380	$	140,951
Income before income taxes	14,313		16,359		11,128			6,909		48,709
Consolidated results:
Revenues	$	1,162,756	$	1,279,422	$	1,582,078		$	1,655,339	$	5,679,595
Income before income taxes	82,350		38,330		174,722			232,420		527,822
Income tax expense (benefit) (c)	588		1,913		(2,107,162		)	12,367		(2,092,294		)
Net income	$	81,762	$	36,417	$	2,281,884		$	220,053	$	2,620,116
Net income per share:
Basic	$	0.21	$	0.09	$	5.92		$	0.58	$	6.79
Diluted	$	0.21	$	0.09	$	5.87		$	0.57	$	6.72
Number of shares used in calculation:
Basic	384,228		385,389		382,883			379,879		383,077
Effect of dilutive securities	6,093		5,791		3,220			3,845		3,789
Diluted	390,321		391,180		386,103			383,724		386,866


(a)	Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently.


(b)	Homebuilding income before income taxes in the 2nd Quarter includes charges totaling $66.6 million consisting of losses on debt retirements, costs associated with the relocation of our corporate headquarters, and a contractual dispute related to a previously completed luxury community.


(c)	Income tax expense (benefit) includes a benefit of $2.1 billion and $73.7 million in the 3rd Quarter and 4th Quarter, respectively, related to the reversal of substantially all of the valuation allowance previously recorded against our deferred tax assets.