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

SEPTEMBER 30, 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	$	187,299	$	1,080,993	$	81,702	$	—		$	1,349,994
Restricted cash	53,672		4,455		11,294		—			69,421
House and land inventory	—		4,150,254		710		—			4,150,964
Land held for sale	—		64,066		1,034		—			65,100
Land, not owned, under option agreements	—		27,612		—		—			27,612
Residential mortgage loans available- for-sale	—		—		296,922		—			296,922
Investments in unconsolidated entities	66		40,983		3,957		—			45,006
Other assets	40,125		353,549		46,850		—			440,524
Intangible assets	—		139,423		—		—			139,423
Deferred tax assets, net	2,087,306		20		21,430		—			2,108,756
Investments in subsidiaries and intercompany accounts, net	4,461,536		644,702		5,035,100		(10,141,338		)	—
	$	6,830,004	$	6,506,057	$	5,498,999	$	(10,141,338	)	$	8,693,722
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, customer deposits, accrued and other liabilities	$	84,792	$	1,470,586	$	278,034	$	—		$	1,833,412
Income tax liabilities	196,870		—		—		—			196,870
Financial Services debt	—		—		115,098		—			115,098
Senior notes	2,056,657		—		—		—			2,056,657
Total liabilities	2,338,319		1,470,586		393,132		—			4,202,037
Total shareholders’ equity	4,491,685		5,035,471		5,105,867		(10,141,338		)	4,491,685
	$	6,830,004	$	6,506,057	$	5,498,999	$	(10,141,338	)	$	8,693,722

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2012

($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	$	146,168	$	1,063,943	$	194,649	$	—		$	1,404,760
Restricted cash	54,546		3,365		14,039		—			71,950
House and land inventory	—		4,210,201		3,845		—			4,214,046
Land held for sale	—		91,104		—		—			91,104
Land, not owned, under option agreements	—		31,066		—		—			31,066
Residential mortgage loans available- for-sale	—		—		318,931		—			318,931
Investments in unconsolidated entities	1,528		40,973		3,128		—			45,629
Other assets	28,951		324,109		54,615		—			407,675
Intangible assets	—		149,248		—		—			149,248
Investments in subsidiaries and intercompany accounts, net	4,723,466		7,198,710		6,296,915		(18,219,091		)	—
	$	4,954,659	$	13,112,719	$	6,886,122	$	(18,219,091	)	$	6,734,409
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, customer deposits, accrued and other liabilities	$	56,565	$	1,343,653	$	297,302	$	—		$	1,697,520
Income tax liabilities	198,865		—		—		—			198,865
Financial Services debt	—		—		138,795		—			138,795
Senior notes	2,509,613		—		—		—			2,509,613
Total liabilities	2,765,043		1,343,653		436,097		—			4,544,793
Total shareholders’ equity	2,189,616		11,769,066		6,450,025		(18,219,091		)	2,189,616
	$	4,954,659	$	13,112,719	$	6,886,122	$	(18,219,091	)	$	6,734,409

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the three months ended September 30, 2013

($000’s omitted)



	Unconsolidated												Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	1,491,959		$	—		$	—		$	1,491,959
Land sale revenues	—			55,783			—			—			55,783
	—			1,547,742			—			—			1,547,742
Financial Services	—			649			33,687			—			34,336
	—			1,548,391			33,687			—			1,582,078
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			1,180,137			—			—			1,180,137
Land sale cost of revenues	—			49,933			—			—			49,933
	—			1,230,070			—			—			1,230,070
Financial Services expenses	209			145			22,890			—			23,244
Selling, general and administrative expenses	—			138,629			8			—			138,637
Other expense (income), net	3,844			10,860			2,351			—			17,055
Interest income	(91		)	(928		)	(17		)	—			(1,036		)
Interest expense	171			—			—			—			171
Equity in (earnings) loss of unconsolidated entities	2			(570		)	(217		)	—			(785		)
Intercompany interest	(158,633		)	162,739			(4,106		)	—			—
Income (loss) before income taxes and equity in income (loss) of subsidiaries	154,498			7,446			12,778			—			174,722
Income tax expense (benefit)	(2,108,148		)	(1,692		)	2,678			—			(2,107,162		)
Income (loss) before equity in income (loss) of subsidiaries	2,262,646			9,138			10,100			—			2,281,884
Equity in income (loss) of subsidiaries	19,238			11,316			94,212			(124,766		)	—
Net income (loss)	2,281,884			20,454			104,312			(124,766		)	2,281,884
Other comprehensive income	77			—			—			—			77
Comprehensive income	$	2,281,961		$	20,454		$	104,312		$	(124,766	)	$	2,281,961

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the three months ended September 30, 2012

($000’s omitted)



	Unconsolidated												Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	1,232,704		$	—		$	—		$	1,232,704
Land sale revenues	—			22,623			—			—			22,623
	—			1,255,327			—			—			1,255,327
Financial Services	—			537			46,727			—			47,264
	—			1,255,864			46,727			—			1,302,591
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			1,023,704			—			—			1,023,704
Land sale cost of revenues	—			21,061			—			—			21,061
	—			1,044,765			—			—			1,044,765
Financial Services expenses	(5		)	123			20,460			—			20,578
Selling, general and administrative expenses	—			124,410			781			—			125,191
Other expense (income), net	(10		)	7,315			148			—			7,453
Interest income	(55		)	(1,141		)	(23		)	—			(1,219		)
Interest expense	201			—			—			—			201
Equity in (earnings) loss of unconsolidated entities	—			(150		)	(134		)	—			(284		)
Intercompany interest	159,014			(155,576		)	(3,438		)	—			—
Income (loss) before income taxes and equity in income (loss) of subsidiaries	(159,145		)	236,118			28,933			—			105,906
Income tax expense (benefit)	(9,738		)	(10,648		)	9,659			—			(10,727		)
Income (loss) before equity in income (loss) of subsidiaries	(149,407		)	246,766			19,274			—			116,633
Equity in income (loss) of subsidiaries	266,040			19,387			183,738			(469,165		)	—
Net income (loss)	116,633			266,153			203,012			(469,165		)	116,633
Other comprehensive income	58			—			—			—			58
Comprehensive income (loss)	$	116,691		$	266,153		$	203,012		$	(469,165	)	$	116,691

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the nine months ended September 30, 2013

($000’s omitted)



	Unconsolidated												Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	3,811,386		$	—		$	—		$	3,811,386
Land sale revenues	—			102,299			—			—			102,299
	—			3,913,685			—			—			3,913,685
Financial Services	—			1,759			108,812			—			110,571
	—			3,915,444			108,812			—			4,024,256
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			3,072,425			—			—			3,072,425
Land sale cost of revenues	—			92,661			—			—			92,661
	—			3,165,086			—			—			3,165,086
Financial Services expenses	625			369			67,873			—			68,867
Selling, general and administrative expenses	—			417,495			1,299			—			418,794
Other expense (income), net	26,887			48,379			3,900			—			79,166
Interest income	(257		)	(2,985		)	(79		)	—			(3,321		)
Interest expense	544			—			—			—			544
Equity in (earnings) loss of unconsolidated entities	1,462			(916		)	(828		)	—			(282		)
Intercompany interest	16,647			(9,658		)	(6,989		)	—			—
Income (loss) before income taxes and equity in income (loss) of subsidiaries	(45,908		)	297,674			43,636			—			295,402
Income tax expense (benefit)	(2,108,019		)	(9,658		)	13,016			—			(2,104,661		)
Income (loss) before equity in income (loss) of subsidiaries	2,062,111			307,332			30,620			—			2,400,063
Equity in income (loss) of subsidiaries	337,952			33,292			295,673			(666,917		)	—
Net income (loss)	2,400,063			340,624			326,293			(666,917		)	2,400,063
Other comprehensive income	273			—			—			—			273
Comprehensive income	$	2,400,336		$	340,624		$	326,293		$	(666,917	)	$	2,400,336

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the nine months ended September 30, 2012

($000’s omitted)



	Unconsolidated												Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	3,070,895		$	—		$	—		$	3,070,895
Land sale revenues	—			69,770			—			—			69,770
	—			3,140,665			—			—			3,140,665
Financial Services	—			1,367			111,000						112,367
	—			3,142,032			111,000			—			3,253,032
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			2,605,249			—						2,605,249
Land sale cost of revenues	—			62,069			—						62,069
	—			2,667,318			—			—			2,667,318
Financial Services expenses	165			396			62,353						62,914
Selling, general and administrative expenses	—			370,076			2,615						372,691
Other expense (income), net	(30		)	21,774			2,826						24,570
Interest income	(178		)	(3,335		)	(69		)				(3,582		)
Interest expense	616			—			—						616
Equity in (earnings) loss of unconsolidated entities	(2		)	(3,312		)	(522		)				(3,836		)
Intercompany interest	421,479			(411,405		)	(10,074		)				—
Income (loss) before income taxes and equity in income (loss) of subsidiaries	(422,050		)	500,520			53,871			—			132,341
Income tax expense (benefit)	9,518			(14,842		)	(9,738		)				(15,062		)
Income (loss) before equity in income (loss) of subsidiaries	(431,568		)	515,362			63,609			—			147,403
Equity in income (loss) of subsidiaries	578,971			64,123			329,332			(972,426		)	—
Net income (loss)	147,403			579,485			392,941			(972,426		)	147,403
Other comprehensive income	173			—			—			—			173
Comprehensive income	$	147,576		$	579,485		$	392,941		$	(972,426	)	$	147,576

CONSOLIDATING STATEMENT OF CASH FLOWS

For the nine months ended September 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	$	15,822		$	511,801		$	27,327		$	—	$	554,950
Cash flows from investing activities:
Distributions from unconsolidated entities	—			200			—			—		200
Investments in unconsolidated entities	—			(1,057		)	—			—		(1,057		)
Net change in loans held for investment	—			—			236			—		236
Change in restricted cash related to letters of credit	875			—			—			—		875
Proceeds from the sale of property and equipment	—			9			—			—		9
Capital expenditures	—			(16,679		)	(1,675		)	—		(18,354		)
Net cash provided by (used in) investing activities	875			(17,527		)	(1,439		)	—		(18,091		)
Cash flows from financing activities:
Financial Services borrowings (repayments)	—			—			(23,697		)	—		(23,697		)
Other borrowings (repayments)	(485,048		)	7,828			—			—		(477,220		)
Stock option exercises	18,549			—			—			—		18,549
Stock repurchases	(89,940		)	—			—			—		(89,940		)
Dividends paid	(19,317		)	—			—			—		(19,317		)
Intercompany activities, net	600,190			(485,052		)	(115,138		)	—		—
Net cash provided by (used in) financing activities	24,434			(477,224		)	(138,835		)	—		(591,625		)
Net increase (decrease) in cash and equivalents	41,131			17,050			(112,947		)	—		(54,766		)
Cash and equivalents at beginning of period	146,168			1,063,943			194,649			—		1,404,760
Cash and equivalents at end of period	$	187,299		$	1,080,993		$	81,702		$	—	$	1,349,994

CONSOLIDATING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2012

($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	$	(397,371	)	$	765,922		$	52,681		$	—	$	421,232
Cash flows from investing activities:
Distributions from unconsolidated entities	—			2,696			—			—		2,696
Investments in unconsolidated entities	—			(1,266		)	—			—		(1,266		)
Net change in loans held for investment	—			—			736			—		736
Change in restricted cash related to letters of credit	26,096			—			—			—		26,096
Proceeds from the sale of property and equipment	—			4,705			—			—		4,705
Capital expenditures	—			(8,398		)	(2,199		)	—		(10,597		)
Net cash provided by (used in) investing activities	26,096			(2,263		)	(1,463		)	—		22,370
Cash flows from financing activities:
Financial Services borrowings (repayments)	—			—			103,000			—		103,000
Other borrowings (repayments)	(96,393		)	3,900			—			—		(92,493		)
Stock option exercises	27,432			—			—			—		27,432
Stock repurchases	(961		)	—			—			—		(961		)
Intercompany activities, net	465,471			(305,997		)	(159,474		)	—		—
Net cash provided by (used in) financing activities	395,549			(302,097		)	(56,474		)	—		36,978
Net increase (decrease) in cash and equivalents	24,274			461,562			(5,256		)	—		480,580
Cash and equivalents at beginning of period	119,287			875,561			88,223			—		1,083,071
Cash and equivalents at end of period	$	143,561		$	1,337,123		$	82,967		$	—	$	1,563,651