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, 2015

($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	$	—	$	403,725	$	56,636	$	—		$	460,361
Restricted cash	—		3,974		13,200		—			17,174
House and land inventory	—		4,888,410		150		—			4,888,560
Land held for sale	—		87,479		1,034		—			88,513
Land, not owned, under option agreements	—		98,264		—		—			98,264
Residential mortgage loans available- for-sale	—		—		269,544		—			269,544
Investments in unconsolidated entities	84		35,848		4,300		—			40,232
Other assets	24,532		466,360		70,142		—			561,034
Intangible assets	—		116,665		—		—			116,665
Deferred tax assets, net	1,609,795		13		7,801		—			1,617,609
Investments in subsidiaries and intercompany accounts, net	4,671,339		729,467		6,024,707		(11,425,513		)	—
	$	6,305,750	$	6,830,205	$	6,447,514	$	(11,425,513	)	$	8,157,956
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, customer deposits, accrued and other liabilities	$	67,137	$	1,558,523	$	174,412	$	—		$	1,800,072
Income tax liabilities	48,774		—		—		—			48,774
Financial Services debt	—		—		119,271		—			119,271
Senior notes	1,583,580		—		—		—			1,583,580
Total liabilities	1,699,491		1,558,523		293,683		—			3,551,697
Total shareholders’ equity	4,606,259		5,271,682		6,153,831		(11,425,513		)	4,606,259
	$	6,305,750	$	6,830,205	$	6,447,514	$	(11,425,513	)	$	8,157,956

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 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	$	7,454	$	1,157,307		$	128,101		$	—		$	1,292,862
Restricted cash	3,710		1,513			11,135			—			16,358
House and land inventory	—		4,391,445			655			—			4,392,100
Land held for sale	—		100,156			1,034			—			101,190
Land, not owned, under option agreements	—		30,186			—			—			30,186
Residential mortgage loans available- for-sale	—		—			339,531			—			339,531
Securities purchased under agreements to resell	22,000		—			(22,000		)	—			—
Investments in unconsolidated entities	74		36,126			4,168			—			40,368
Other assets	34,214		421,145			57,673			—			513,032
Intangible assets	—		123,115			—			—			123,115
Deferred tax assets, net	1,712,853		15			7,800			—			1,720,668
Investments in subsidiaries and intercompany accounts, net	4,963,831		967,032			6,359,441			(12,290,304		)	—
	$	6,744,136	$	7,228,040		$	6,887,538		$	(12,290,304	)	$	8,569,410
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, customer deposits, accrued and other liabilities	$	71,874	$	1,514,954		$	170,104		$	—		$	1,756,932
Income tax liabilities	48,747		(25		)	—			—			48,722
Financial Services debt	—		—			140,241			—			140,241
Senior notes	1,818,561		—			—			—			1,818,561
Total liabilities	1,939,182		1,514,929			310,345			—			3,764,456
Total shareholders’ equity	4,804,954		5,713,111			6,577,193			(12,290,304		)	4,804,954
	$	6,744,136	$	7,228,040		$	6,887,538		$	(12,290,304	)	$	8,569,410

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

For the three months ended June 30, 2015

($000’s omitted)



	Unconsolidated												Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	1,243,077		$	—		$	—		$	1,243,077
Land sale revenues	—			6,460			—			—			6,460
	—			1,249,537			—			—			1,249,537
Financial Services	—			—			30,754			—			30,754
	—			1,249,537			30,754			—			1,280,291
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			953,280			—			—			953,280
Land sale cost of revenues	—			5,312			—			—			5,312
	—			958,592			—			—			958,592
Financial Services expenses	101			(92		)	20,758			—			20,767
Selling, general and administrative expenses	—			129,457			662			—			130,119
Other expense (income), net	(6		)	4,947			57			—			4,998
Interest income	—			(856		)	—			—			(856		)
Interest expense	208			—			—			—			208
Equity in earnings of unconsolidated entities	(4		)	(952		)	(208		)	—			(1,164		)
Intercompany interest	(6,781		)	9,269			(2,488		)	—			—
Income (loss) before income taxes and equity in income (loss) of subsidiaries	6,482			149,172			11,973			—			167,627
Income tax expense (benefit)	2,462			57,270			4,571			—			64,303
Income (loss) before equity in income (loss) of subsidiaries	4,020			91,902			7,402			—			103,324
Equity in income (loss) of subsidiaries	99,304			7,332			92,596			(199,232		)	—
Net income (loss)	103,324			99,234			99,998			(199,232		)	103,324
Other comprehensive income	21			—			—			—			21
Comprehensive income (loss)	$	103,345		$	99,234		$	99,998		$	(199,232	)	$	103,345

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

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 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 six months ended June 30, 2015

($000’s omitted)



	Unconsolidated												Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	2,331,235		$	—		$	—		$	2,331,235
Land sale revenues	—			24,002			—			—			24,002
	—			2,355,237			—			—			2,355,237
Financial Services	—			—			58,352			—			58,352
	—			2,355,237			58,352			—			2,413,589
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			1,794,425			—			—			1,794,425
Land sale cost of revenues	—			18,691			—			—			18,691
	—			1,813,116			—			—			1,813,116
Financial Services expenses	288			(261		)	43,281			—			43,308
Selling, general and administrative expenses	—			290,285			1,146			—			291,431
Other expense, net	(9		)	6,243			(100		)	—			6,134
Interest income	(3		)	(1,958		)	6			—			(1,955		)
Interest expense	395			—			—			—			395
Equity in (earnings) loss of unconsolidated entities	(10		)	(1,854		)	(407		)	—			(2,271		)
Intercompany interest	943			3,847			(4,790		)	—			—
Income (loss) before income taxes and equity in income (loss) of subsidiaries	(1,604		)	245,819			19,216			—			263,431
Income tax expense (benefit)	(609		)	98,365			7,380			—			105,136
Income (loss) before equity in income (loss) of subsidiaries	(995		)	147,454			11,836			—			158,295
Equity in income (loss) of subsidiaries	159,290			11,669			144,659			(315,618		)	—
Net income (loss)	158,295			159,123			156,495			(315,618		)	158,295
Other comprehensive income	42			—			—			—			42
Comprehensive income	$	158,337		$	159,123		$	156,495		$	(315,618	)	$	158,337

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 (income), 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 (loss)	$	116,760		$	123,122		$	129,927		$	(253,049	)	$	116,760

CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended June 30, 2015

($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	$	65,947		$	(325,154	)	$	68,104		$	—	$	(191,103	)
Cash flows from investing activities:
Distributions from unconsolidated entities	—			631			275			—		906
Net change in loans held for investment	—			—			9,634			—		9,634
Change in restricted cash related to letters of credit	3,710			—			—			—		3,710
Proceeds from the sale of property and equipment	—			400			—			—		400
Capital expenditures	—			(20,871		)	(2,244		)			(23,115		)
Net cash provided by (used in) investing activities	3,710			(19,840		)	7,665			—		(8,465		)
Cash flows from financing activities:
Financial Services borrowings (repayments)	—			—			(20,970		)	—		(20,970		)
Other borrowings (repayments)	(237,994		)	—			—			—		(237,994		)
Stock option exercises	7,222			—			—			—		7,222
Share repurchases	(322,066		)	—			—			—		(322,066		)
Dividends paid	(59,125		)	—			—			—		(59,125		)
Intercompany activities, net	534,852			(408,588		)	(126,264		)	—		—
Net cash provided by (used in) financing activities	(77,111		)	(408,588		)	(147,234		)	—		(632,933		)
Net increase (decrease) in cash and equivalents	(7,454		)	(753,582		)	(71,465		)	—		(832,501		)
Cash and equivalents at beginning of period	7,454			1,157,307			128,101			—		1,292,862
Cash and equivalents at end of period	$	—		$	403,725		$	56,636		$	—	$	460,361

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
Share 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