10-Q

______________________________________________________________________________________________________

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2012

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-9804

PULTEGROUP, INC.

(Exact name of registrant as specified in its charter) 

MICHIGAN	38-2766606
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

100 Bloomfield Hills Parkway, Suite 300

Bloomfield Hills, Michigan 48304

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (248) 647-2750

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  [X]   NO  [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES  [X]   NO  [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  [X] Accelerated filer  [ ] Non-accelerated filer [ ]   Smaller reporting company [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  YES [ ]  NO  [X]

Number of shares of common stock outstanding as of April 20, 2012: 383,649,300

______________________________________________________________________________________________________

PULTEGROUP, INC.

INDEX

		Page No.
PART I	FINANCIAL INFORMATION
Item 1	Financial Statements
	Condensed Consolidated Balance Sheets at March 31, 2012 and December 31, 2011	3
	Consolidated Statements of Operations for the three months ended March 31, 2012 and 2011	4
	Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2012 and 2011	5
	Consolidated Statements of Shareholders' Equity for the three months ended March 31, 2012 and 2011	6
	Consolidated Statements of Cash Flows for the three months ended March 31, 2012 and 2011	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4	Controls and Procedures	48
PART II	OTHER INFORMATION	48
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 6	Exhibits	49
	Signatures	50

2

PART I. FINANCIAL INFORMATION

Item 1.      Financial Statements

PULTEGROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

($000’s omitted)

	March 31, 2012		December 31, 2011
	(Unaudited)		(Note)
ASSETS
Cash and equivalents	$	1,211,735	$	1,083,071
Restricted cash	89,869		101,860
House and land inventory	4,584,416		4,636,468
Land held for sale	136,232		135,307
Land, not owned, under option agreements	26,121		24,905
Residential mortgage loans available-for-sale	184,164		258,075
Investments in unconsolidated entities	34,146		35,988
Income taxes receivable	29,673		27,154
Other assets	404,014		420,444
Intangible assets	159,073		162,348
	$	6,859,443	$	6,885,620
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Accounts payable, including book overdrafts of $33,650 and $48,380 in 2012 and 2011,       respectively	$	170,609	$	196,447
Customer deposits	71,580		46,960
Accrued and other liabilities	1,382,330		1,411,941
Income tax liabilities	215,150		203,313
Senior notes	3,090,946		3,088,344
	4,930,615		4,947,005
Shareholders' equity	1,928,828		1,938,615
	$	6,859,443	$	6,885,620

Note: The Condensed Consolidated Balance Sheet at December 31, 2011 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

See accompanying Notes to Condensed Consolidated Financial Statements.

3

PULTEGROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(000’s omitted, except per share data)

(Unaudited)

	Three Months Ended
	March 31,
	2012			2011
Revenues:
Homebuilding
Home sale revenues	$	813,786		$	782,471
Land sale revenues	38,398			1,296
	852,184			783,767
Financial Services	28,852			21,435
Total revenues	881,036			805,202
Homebuilding Cost of Revenues:
Home sale cost of revenues	712,166			685,030
Land sale cost of revenues	33,397			930
	745,563			685,960
Financial Services expenses	22,009			20,473
Selling, general and administrative expenses	123,314			142,446
Other expense (income), net	6,619			3,910
Interest income	(1,199		)	(1,437		)
Interest expense	217			351
Equity in (earnings) loss of unconsolidated entities	(1,996		)	(1,109		)
Income (loss) before income taxes	(13,491		)	(45,392		)
Income tax expense (benefit)	(1,825		)	(5,866		)
Net income (loss)	$	(11,666	)	$	(39,526	)
Net income (loss) per share:
Basic	$	(0.03	)	$	(0.10	)
Diluted	$	(0.03	)	$	(0.10	)
Number of shares used in calculation:
Basic	380,502			379,544
Diluted	380,502			379,544

See accompanying Notes to Condensed Consolidated Financial Statements.

4

PULTEGROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(000’s omitted)

(Unaudited)

	Three Months Ended
	March 31,
	2012			2011
Net income (loss)	$	(11,666	)	$	(39,526	)
Other comprehensive income (loss), net of tax:
Change in fair value of derivatives	57			9
Foreign currency translation adjustments	—			(51		)
Other comprehensive income (loss)	57			(42		)
Comprehensive income (loss)	$	(11,609	)	$	(39,568	)

See accompanying Notes to Condensed Consolidated Financial Statements.

5

PULTEGROUP, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(000's omitted)

(Unaudited)

	Common Stock					Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings (Accumulated Deficit)			Total
	Shares		$
Shareholders' Equity, January 1, 2012	382,608		$	3,826		$	2,986,240		$	(1,306	)	$	(1,050,145	)	$	1,938,615
Stock awards, net of cancellations	1,134		11			(11		)	—			—			—
Stock repurchases	(93	)	(1		)	(727		)	—			(117		)	(845		)
Stock-based compensation	—		—			2,667			—			—			2,667
Net income (loss)	—		—			—			—			(11,666		)	(11,666		)
Other comprehensive income (loss)	—		—			—			57			—			57
Shareholders' Equity, March 31, 2012	383,649		$	3,836		$	2,988,169		$	(1,249	)	$	(1,061,928	)	$	1,928,828
Shareholders' Equity, January 1, 2011	382,028		$	3,820		$	2,972,919		$	(1,519	)	$	(840,053	)	$	2,135,167
Stock awards, net of cancellations	910		9			(9		)	—			—			—
Stock repurchases	(129	)	(1		)	(1,002		)	—			34			(969		)
Stock-based compensation	—		—			5,510			—			—			5,510
Net income (loss)	—		—			—			—			(39,526		)	(39,526		)
Other comprehensive income (loss)	—		—			—			(42		)	—			(42		)
Shareholders' Equity, March 31, 2011	382,809		$	3,828		$	2,977,418		$	(1,561	)	$	(879,545	)	$	2,100,140

See accompanying Notes to Condensed Consolidated Financial Statements.

6

PULTEGROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

($000’s omitted)

(Unaudited)

	Three Months Ended
	March 31,
	2012			2011
Cash flows from operating activities:
Net income (loss)	$	(11,666	)	$	(39,526	)
Adjustments to reconcile net income (loss) to net cash flows provided by (used in)       operating activities:
Write-down of land and deposits and pre-acquisition costs	5,896			726
Depreciation and amortization	7,393			8,970
Stock-based compensation expense	3,719			5,510
Equity in (earnings) loss of unconsolidated entities	(1,996		)	(1,109		)
Distributions of earnings from unconsolidated entities	3,518			411
Other, net	103			781
Increase (decrease) in cash due to:
Restricted cash	53			864
Inventories	45,969			(10,315		)
Residential mortgage loans available-for-sale	74,073			32,292
Other assets	10,257			79,383
Accounts payable, accrued and other liabilities	(34,466		)	(122,825		)
Income tax liabilities	11,837			(4,803		)
Net cash provided by (used in) operating activities	114,690			(49,641		)
Cash flows from investing activities:
Distributions from unconsolidated entities	—			1,021
Investments in unconsolidated entities	(49		)	(1,968		)
Net change in loans held for investment	293			255
Change in restricted cash related to letters of credit	11,938			(109,667		)
Proceeds from the sale of fixed assets	4,475			2,441
Capital expenditures	(3,758		)	(6,128		)
Net cash provided by (used in) investing activities	12,899			(114,046		)
Cash flows from financing activities:
Net borrowings (repayments) of other borrowings	1,920			(13,312		)
Stock repurchases	(845		)	(969		)
Net cash provided by (used in) financing activities	1,075			(14,281		)
Net increase (decrease) in cash and equivalents	128,664			(177,968		)
Cash and equivalents at beginning of period	1,083,071			1,483,390
Cash and equivalents at end of period	$	1,211,735		$	1,305,422
Supplemental Cash Flow Information:
Interest paid (capitalized), net	$	(22,808	)	$	(23,833	)
Income taxes paid (refunded), net	$	(11,142	)	$	(2,922	)

See accompanying Notes to Condensed Consolidated Financial Statements.

7

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) 

1. Summary of significant accounting policies

Basis of presentation

PulteGroup, Inc. is one of the largest homebuilders in the United States, and our common stock trades on the New York Stock Exchange under the ticker symbol “PHM”. Unless the context otherwise requires, the terms "PulteGroup", the "Company", "we", "us", and "our" used herein refer to PulteGroup, Inc. and its subsidiaries. While our subsidiaries engage primarily in the homebuilding business, we also have mortgage banking operations, conducted principally through Pulte Mortgage LLC (“Pulte Mortgage”), and title operations.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2011.

Use of estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Reclassification

Certain prior period amounts have been reclassified to conform to the current year presentation.

Subsequent events

We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission ("SEC").

Cash and equivalents

Cash and equivalents include institutional money market investments and time deposits with a maturity of three months or less when acquired. Cash and equivalents at March 31, 2012 and December 31, 2011 also included $19.3 million and $13.0 million, respectively, of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit.

Restricted cash

We maintain certain cash balances that are restricted as to their use. Restricted cash consists primarily of deposits maintained with financial institutions under certain cash-collateralized letter of credit agreements (see Note 9). The remaining balances relate to certain other accounts with restrictions, including customer deposits on home sales that are temporarily restricted by regulatory requirements until title transfers to the homebuyer.

8

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Other expense (income), net

Other expense (income), net consists of the following ($000’s omitted):

	Three Months Ended
	March 31,
	2012		2011
Write-offs of deposits and pre-acquisition costs	$	739	$	623
Lease exit and related costs (a)	2,359		(82		)
Amortization of intangible assets	3,275		3,275
Miscellaneous expense (income), net	246		94
	$	6,619	$	3,910

(a) Excludes $2.4 million of lease exit costs classified within Financial Services expense during the three months ended March 31, 2012. Such costs were immaterial during the three months ended March 31, 2011. See Note 2.

Notes receivable

In certain instances, we may accept consideration for land sales or other transactions in the form of a note receivable. The counterparties for these transactions are generally land developers or other real estate investors. We consider the creditworthiness of the counterparty when evaluating the relative risk and return involved in pursuing the applicable transaction. Due to the unique facts and circumstances surrounding each receivable, we assess the need for an allowance on an individual basis. Factors considered as part of this assessment include the counterparty's payment history, the value of any underlying collateral, communications with the counterparty, knowledge of the counterparty's financial condition and plans, and the current and expected economic environment. Allowances are recorded in other expense (income), net when it becomes likely that some amount will not be collectible. Such receivables are reported net of allowance for credit losses within other assets. Notes receivable are written off when it is determined that collection efforts will no longer be pursued. Interest income is recognized as earned.

The following represents our notes receivable and related allowance for credit losses at March 31, 2012 and December 31, 2011 ($000’s omitted):

	March 31, 2012			December 31, 2011
Notes receivable, gross	$	78,579		$	78,834
Allowance for credit losses	(44,091		)	(41,647		)
Notes receivable, net	$	34,488		$	37,187

We also record other receivables from various parties in the normal course of business, including amounts due from municipalities, insurance companies, and vendors. Such receivables are generally non-interest bearing and non-collateralized, payable either on demand or upon the occurrence of a specified event, and are generally reported in other assets. See Residential mortgage loans available-for-sale in Note 1 for a discussion of our receivables related to mortgage operations.

Earnings per share

Basic earnings per share is computed by dividing income (loss) available to common shareholders (the “numerator”) by the weighted-average number of common shares, adjusted for non-vested shares of restricted stock (the “denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the denominator is increased to include the dilutive effects of stock options, non-vested restricted stock, and other potentially dilutive instruments. Any stock options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation. Due to the net loss recorded during the periods, all stock options, non-vested restricted stock, and other potentially dilutive instruments were excluded from the calculation for the three months ended March 31, 2012 and 2011.

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are

9

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. The two-class method determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and their respective participation rights in undistributed earnings. Although our outstanding restricted stock and restricted stock units are considered participating securities, there were no earnings attributable to restricted shareholders during the three months ended March 31, 2012 or 2011.

Land, not owned, under option agreements

In the ordinary course of business, we enter into land option agreements in order to procure land for the construction of homes in the future. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Under ASC 810, “Consolidation” (“ASC 810”), if the entity holding the land under option is a variable interest entity (“VIE”), our deposit represents a variable interest in that entity. If we are determined to be the primary beneficiary of the VIE, then we are required to consolidate the VIE.

Only a portion of our land option agreements are with entities considered VIEs. In evaluating whether there exists a need to consolidate a VIE, we take into consideration that the VIE is generally protected from the first dollar of loss under our land option agreement due to our deposit. Likewise, the VIE's gains are generally capped based on the purchase price within the land option agreement. However, we generally have little control or influence over the operations of these VIEs due to our lack of an equity interest in them. Additionally, creditors of the VIE have no recourse against us, and we do not provide financial or other support to these VIEs other than as stipulated in the land option agreements. Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the applicable land option agreements. In recent years, we have canceled a significant number of land option agreements, which has resulted in significant write-offs of the related deposits and pre-acquisition costs but did not expose us to the overall risks or losses of the applicable VIEs. No VIEs required consolidation under ASC 810 at either March 31, 2012 or December 31, 2011.

Additionally, we determined that certain land option agreements represent financing arrangements pursuant to ASC 470-40, “Accounting for Product Financing Arrangements” (“ASC 470-40”), even though we generally have no obligation to pay these future amounts. As a result, we recorded $26.1 million and $24.9 million at March 31, 2012 and December 31, 2011, respectively, to land, not owned, under option agreements with a corresponding increase to accrued and other liabilities. Such amounts represent the remaining purchase price under the land option agreements, some of which are with VIEs, in the event we exercise the purchase rights under the agreements.

The following provides a summary of our interests in land option agreements as of March 31, 2012 and December 31, 2011 ($000’s omitted):

	March 31, 2012						December 31, 2011
	Deposits and Pre-acquisition Costs		Remaining Purchase Price		Land, Not Owned, Under Option Agreements		Deposits and Pre-acquisition Costs		Remaining Purchase Price		Land, Not Owned, Under Option Agreements
Consolidated VIEs	$	3,208	$	12,193	$	4,461	$	2,781	$	5,957	$	3,837
Unconsolidated VIEs	21,121		231,010		—		21,180		240,958		—
Other land option        agreements	32,026		456,211		21,660		33,086		451,079		21,068
	$	56,355	$	699,414	$	26,121	$	57,047	$	697,994	$	24,905

Residential mortgage loans available-for-sale

Substantially all of the loans originated by us are sold in the secondary mortgage market within a short period of time after origination. In accordance with ASC 825, “Financial Instruments” (“ASC 825”), we use the fair value option for residential mortgage loans available-for-sale. Election of the fair value option for these loans allows a better offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. We do not designate any derivative instruments as hedges or apply the hedge accounting provisions of ASC 815, “Derivatives and Hedging.” Fair values for agency residential mortgage loans

10

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

available-for-sale are determined based on quoted market prices for comparable instruments. Fair values for non-agency residential mortgage loans available-for-sale are determined based on purchase commitments from whole loan investors and other relevant market information available to management. See Note 10 for discussion of the risks retained related to mortgage loan originations.

Expected gains and losses from the sale of residential mortgage loans and their related servicing rights are included in the measurement of interest rate lock commitments that are accounted for at fair value through Financial Services revenues at the time of commitment.  Subsequent changes in the fair value of these loans are reflected in Financial Services revenues as they occur. At March 31, 2012 and December 31, 2011, residential mortgage loans available-for-sale had an aggregate fair value of $184.2 million and $258.1 million, respectively, and an aggregate outstanding principal balance of $177.5 million and $248.2 million, respectively. The net gain (loss) resulting from changes in fair value of these loans totaled $0.5 million for both the three months ended March 31, 2012 and 2011. These changes in fair value were substantially offset by changes in fair value of the corresponding hedging instruments. Net gains from the sale of mortgages were $19.0 million and $12.8 million during the three months ended March 31, 2012 and 2011, respectively, and have been included in Financial Services revenues.

Mortgage servicing rights

We sell the servicing rights for the loans we originate on a flow basis through fixed price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning the servicing rights for only a short period of time. We recognize the fair value of our rights to service a mortgage loan as revenue at the time of entering into an interest rate lock commitment with a borrower. Due to the short period of time the servicing rights are held, we do not amortize the servicing asset. The servicing sales contracts provide for the reimbursement of payments made by the purchaser if loans prepay within specified periods of time, generally within 90 to 120 days after sale. We establish reserves for this liability at the time the sale is recorded. Such reserves were immaterial at March 31, 2012 and December 31, 2011 and are included in accrued and other liabilities. Servicing rights recognized in Financial Services revenues totaled $4.7 million and $4.9 million during the three months ended March 31, 2012 and 2011, respectively.

Derivative instruments and hedging activities

We are exposed to market risks from commitments to lend, movements in interest rates, and canceled or modified commitments to lend. A commitment to lend at a specific interest rate (an interest rate lock commitment) is a derivative financial instrument (interest rate is locked to the borrower). In order to reduce these risks, we use other derivative financial instruments to economically hedge the interest rate lock commitment. The principal derivative instruments we use to hedge this risk are forward contracts on mortgage-backed securities and whole loan investor commitments. We enter into these derivative financial instruments based upon our portfolio of interest rate lock commitments and closed loans. We do not use any derivative financial instruments for trading purposes.

Fair values for interest rate lock commitments, including the value of servicing rights, are based on market prices for similar instruments. At March 31, 2012 and December 31, 2011, we had interest rate lock commitments in the total amount of $137.2 million and $97.6 million, respectively, which were originated at interest rates prevailing at the date of commitment. Since we can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements. We evaluate the creditworthiness of these transactions through our normal credit policies.

Forward contracts on mortgage-backed securities are commitments to either purchase or sell a specified financial instrument at a specified future date for a specified price and may be settled in cash, by offsetting the position, or through the delivery of the financial instrument. Forward contracts on mortgage-backed securities are the predominant derivative financial instruments we use to minimize the market risk during the period from the time we extend an interest rate lock to a loan applicant until the time the loan is sold to an investor. Forward contracts on mortgage-backed securities are valued based on market prices for similar instruments. We also use whole loan investor commitments, which are obligations of the investor to buy loans at a specified price within a specified time period. Fair values for whole loan investor commitments are based on market prices for similar instruments from the specific whole loan investor. At March 31, 2012 and December 31, 2011, we had unexpired forward contracts of $277.0 million and $311.5 million, respectively, and whole loan investor commitments of $1.7 million and $1.6 million, respectively. Changes in the fair value of interest rate lock commitments and other derivative financial instruments are recognized in Financial Services revenues, and the fair values are reflected in other assets or other liabilities, as applicable.

11

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

There are no credit-risk-related contingent features within our derivative agreements, and counterparty risk is considered minimal. Gains and losses on interest rate lock commitments are substantially offset by corresponding gains or losses on forward contracts on mortgage-backed securities and whole loan investor commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 60 days.

The fair value of derivative instruments and their location in the Condensed Consolidated Balance Sheet is summarized below ($000’s omitted):

	March 31, 2012				December 31, 2011
	Other Assets		Other Liabilities		Other Assets		Other Liabilities
Interest rate lock commitments	$	4,707	$	3	$	3,552	$	1
Forward contracts	788		307		44		3,514
Whole loan commitments	14		60		52		41
	$	5,509	$	370	$	3,648	$	3,556

New accounting pronouncements

In May 2011, the FASB issued Accounting Standards Update No. 2011-04, “Fair Value Measurement” (“ASU 2011-04”), which amended Accounting Standards Codification (ASC) 820 to clarify existing guidance and minimize differences between U.S. GAAP and International Financial Reporting Standards (IFRS). ASU 2011-04 requires entities to provide information about valuation techniques and unobservable inputs used in Level 3 fair value measurements and provide additional disclosures for classes of assets and liabilities disclosed at fair value. We adopted ASU 2011-04 as of January 1, 2012, which did not have a material impact on our financial statements.

In June 2011, the FASB issued Accounting Standards Update No. 2011-05, “Statement of Comprehensive Income” (“ASU 2011-05”), which requires entities to present net income and other comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income. ASU 2011-05 was effective for our fiscal year beginning January 1, 2012. The standard did not impact our reported results of operations but did impact our financial statement presentation. We now present items of other comprehensive income in the Statement of Consolidated Comprehensive Income rather than in the Statement of Shareholders' Equity.

2. Restructuring

In response to the challenging operating environment in recent years, we have taken a series of actions designed to reduce ongoing operating costs and improve operating efficiencies. As a result of these actions, we incurred total restructuring charges as summarized below ($000’s omitted):

	Three Months Ended
	March 31,
	2012		2011
Employee severance benefits	$	195	$	3,031
Lease exit costs	4,749		(51		)
Other	—		(3		)
	$	4,944	$	2,977

Of the total restructuring costs reflected in the above table, $2.4 million and $0.5 million are classified within Financial Services expenses for the three months ended March 31, 2012 and 2011, respectively. All other employee severance benefits are included within selling, general and administrative expense while lease exit and other costs are included in other expense (income), net. The remaining liability for employee severance benefits and exited leases totaled $0.7 million and $31.1 million, respectively, at March 31, 2012 and $2.6 million and $29.7 million, respectively, at December 31, 2011. Substantially all of the remaining liability for employee severance benefits will be paid within the next year, while cash expenditures related to the remaining liability for lease exit costs will be incurred over the remaining terms of the applicable office leases, which generally extend several years. The restructuring costs relate to various reportable segments and did not materially impact the comparability of any one segment.

12

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

3. Inventory and land held for sale

Major components of inventory were as follows ($000’s omitted):

	March 31, 2012		December 31, 2011
Homes under construction	$	1,182,038	$	1,210,717
Land under development	2,674,484		2,610,501
Land held for future development	727,894		815,250
	$	4,584,416	$	4,636,468

We capitalize interest cost into inventory during the active development and construction of our communities. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is recorded based on the cyclical timing of home closings. Interest expensed to Homebuilding cost of revenues for the three months ended March 31, 2012 and 2011 included $0.8 million and $0.1 million, respectively, of capitalized interest related to inventory impairments. We capitalized all Homebuilding interest costs into inventory because the level of our active inventory exceeded our debt levels.

Information related to interest capitalized into inventory is as follows ($000’s omitted):

	Three Months Ended
	March 31,
	2012			2011
Interest in inventory, beginning of period	$	355,068		$	323,379
Interest capitalized	51,323			56,191
Interest expensed	(47,186		)	(34,816		)
Interest in inventory, end of period	$	359,205		$	344,754
Interest incurred*	$	51,323		$	56,191

* Homebuilding interest incurred includes interest on senior debt and certain other financing arrangements.

Land valuation adjustments and write-offs

Impairment of inventory

In accordance with ASC 360, “Property, Plant, and Equipment” (“ASC 360”), we record valuation adjustments on land inventory and related communities under development when events and circumstances indicate that they may be impaired and when the cash flows estimated to be generated by those assets are less than their carrying amounts. Such indicators include gross margin or sales paces significantly below expectations, construction costs or land development costs significantly in excess of budgeted amounts, significant delays or changes in the planned development for the community, and other known qualitative factors. For communities that are not yet active, a significant additional consideration includes an evaluation of the probability, timing, and cost of obtaining necessary approvals from local municipalities and any potential concessions that may be necessary in order to obtain such approvals. We also consider potential changes to the product offerings in a community and any alternative strategies for the land, such as the sale of the land either in whole or in parcels. Communities that demonstrate potential impairment indicators are tested for impairment. We compare the expected undiscounted cash flows for these communities to their carrying value. For those communities whose carrying values exceed the expected undiscounted cash flows, we calculate the fair value of the community in accordance with ASC 360. Impairment charges are required to be recorded if the fair value of the community's inventory is less than its carrying value.

We determine the fair value of a community's inventory using a combination of market comparable land transactions, where available, and discounted cash flow models. These estimated cash flows are significantly impacted by estimates related to expected average selling prices, expected sales paces, expected land development and construction timelines, and anticipated land development, construction, and overhead costs. The assumptions used in the discounted cash flow models are specific to each community tested for impairment and typically do not assume improvements in

13

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

market conditions in the near term. Due to uncertainties in the estimation process, the significant volatility in demand for new housing, and the long life cycles of many communities, actual results could differ significantly from such estimates. Our determination of fair value also requires discounting the estimated cash flows at a rate commensurate with the inherent risks associated with each of the assets and related estimated cash flow streams. The discount rate used in determining each community's fair value depends on the stage of development of the community and other specific factors that increase or decrease the inherent risks associated with the community's cash flow streams. For example, communities that are entitled and near completion will generally be assigned a lower discount rate than communities that are not entitled and consist of multiple phases spanning several years of development and construction activity.

During the three months ended March 31, 2012, we reviewed each of our land positions for potential impairment indicators and performed detailed impairment calculations for approximately 10 communities. As discussed above, determining the fair value of a community's inventory involves a number of variables, many of which are interrelated. The table below summarizes certain quantitative unobservable inputs utilized in determining the fair value of impaired communities at March 31, 2012:

Unobservable input	Range
Average selling price ($000s)	$198	-	$420
Sales pace per quarter (units)	4	-	7
Discount rate	12%	-	16%

The table below provides, as of the date indicated, the number of communities for which we recognized impairment charges, the fair value of those communities at such date (net of impairment charges), and the amount of impairment charges recognized ($000’s omitted):

	2012					2011
Quarter Ended	Number of Communities Impaired	Fair Value of Communities Impaired, Net of Impairment Charges		Impairment Charges		Number of Communities Impaired	Fair Value of Communities Impaired, Net of Impairment Charges		Impairment Charges
March 31	4	$	7,468	$	4,514	1	$	483	$	103

We recorded these valuation adjustments within Homebuilding home sale cost of revenues.

Our evaluations for impairments recorded to date were based on our best estimates of the future cash flows for our communities. However, if conditions in the homebuilding industry or our local markets worsen in the future, if the current difficult market conditions extend beyond our expectations, or if our strategy related to certain communities changes, we may be required to evaluate our assets for further impairments or write-downs, which could result in future charges that might be significant.

Net realizable value adjustments – land held for sale

We acquire land primarily for the construction of homes for sale to customers but may periodically elect to sell select parcels of land to third parties for commercial or other development. Additionally, we may determine that certain land assets no longer fit into our strategic operating plans. Assuming the criteria in ASC 360 are met, we classify such land as land held for sale.

Land held for sale is valued at the lower of carrying value or net realizable value (fair value less costs to sell). In determining the net realizable value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. During the three months ended March 31, 2012, we recognized net realizable value adjustments of $0.6 million. There were no net realizable value adjustments during the three months ended March 31, 2011. We record these net realizable value adjustments within Homebuilding land sale cost of revenues.

14

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Land held for sale was as follows ($000’s omitted):

	March 31, 2012			December 31, 2011
Land held for sale, gross	$	184,250		$	190,099
Net realizable value reserves	(48,018		)	(54,792		)
Land held for sale, net	$	136,232		$	135,307

Write-off of deposits and pre-acquisition costs

We write off deposits and pre-acquisition costs related to land option contracts when it becomes probable that we will not go forward with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the willingness of land sellers to modify terms of the related purchase agreements, the timing of required land takedowns, the availability and best use of necessary incremental capital, and other factors. We wrote off (net of recoveries) deposits and pre-acquisition costs in the amount of $0.7 million and $0.6 million during the three months ended March 31, 2012 and 2011, respectively. We record these write-offs of deposits and pre-acquisition costs within other expense (income), net.

4. Segment information

Our Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the U.S. and the construction of housing on such land. For reporting purposes, our Homebuilding operations are aggregated into six reportable segments. During 2011, we realigned our organizational structure and reportable segment presentation. As part of the change in presentation, we removed the "Other non-operating" distinction. Amounts previously classified within "Other non-operating" have been reclassified to "Other homebuilding." Accordingly, the segment information provided in this note has been reclassified to conform to the current presentation for all periods presented.

Northeast:	Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, Virginia
Southeast:	Georgia, North Carolina, South Carolina, Tennessee
Florida:	Florida
Texas:	Texas
North:	Illinois, Indiana, Michigan, Minnesota, Missouri, Northern California, Ohio, Oregon, Washington
Southwest:	Arizona, Colorado, Hawaii, Nevada, New Mexico, Southern California

We also have one reportable segment for our Financial Services operations, which consist principally of mortgage banking and title operations. The Financial Services segment operates generally in the same markets as the Homebuilding segments.

Evaluation of segment performance is generally based on income before income taxes. Each reportable segment generally follows the same accounting policies described in Note 1 - "Summary of Significant Accounting Policies" to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2011.

15

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

	Operating Data by Segment ($000’s omitted)
	Three Months Ended
	March 31,
	2012			2011
Revenues:
Northeast	$	140,334		$	126,311
Southeast	133,408			142,555
Florida	123,998			116,774
Texas	130,191			131,156
North	186,156			134,139
Southwest	138,097			132,832
	852,184			783,767
Financial Services	28,852			21,435
Consolidated revenues	$	881,036		$	805,202
Income (loss) before income taxes:
Northeast	$	6,496		$	(495	)
Southeast	5,013			4,152
Florida	5,503			99
Texas	7,046			3,878
North	3,141			(5,161		)
Southwest	(941		)	(5,063		)
Other homebuilding (a)	(46,610		)	(43,775		)
	(20,352		)	(46,365		)
Financial Services (b)	6,861			973
Consolidated income (loss) before income taxes	$	(13,491	)	$	(45,392	)

(a) Other homebuilding includes the amortization of intangible assets and capitalized interest and other costs not allocated to the operating segments.

(b) Financial Services income (loss) before income taxes includes interest income of $1.2 million and $1.0 million for the three months ended March 31, 2012 and 2011, respectively.

16

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

	Land-Related Charges by Segment ($000's omitted)
	Three Months Ended
	March 31,
	2012			2011
Land and community valuation adjustments:
Northeast	$	—		$	—
Southeast	—			41
Florida	—			—
Texas	—			—
North	1,890			—
Southwest	1,810			—
Other homebuilding (a)	814			62
	$	4,514		$	103
Net realizable value adjustments (NRV) - land held for sale:
Northeast	$	—		$	—
Southeast	285			—
Florida	38			—
Texas	—			—
North	(119		)	—
Southwest	439			—
	$	643		$	—
Write-off of deposits and pre-acquisition costs:
Northeast	$	51		$	263
Southeast	555			205
Florida	11			—
Texas	25			13
North	97			62
Southwest	—			80
	$	739		$	623
Total land-related charges	$	5,896		$	726

(a) Primarily write-offs of capitalized interest related to land and community valuation adjustments.

17

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

	Operating Data by Segment
	($000's omitted)
	March 31, 2012
	Homes Under Construction		Land Under Development		Land Held for Future Development		Total Inventory		Total Assets
Northeast	$	223,600	$	472,547	$	115,042	$	811,189	$	955,827
Southeast	165,451		310,318		122,021		597,790		623,150
Florida	136,848		325,395		103,392		565,635		636,887
Texas	132,932		291,496		75,263		499,691		558,512
North	256,753		384,737		61,831		703,321		785,103
Southwest	219,935		605,801		180,039		1,005,775		1,090,411
Other homebuilding (a)	46,519		284,190		70,306		401,015		1,996,631
	1,182,038		2,674,484		727,894		4,584,416		6,646,521
Financial Services	—		—		—		—		212,922
	$	1,182,038	$	2,674,484	$	727,894	$	4,584,416	$	6,859,443
	December 31, 2011
	Homes Under Construction		Land Under Development		Land Held for Future Development		Total Inventory		Total Assets
Northeast	$	237,722	$	457,010	$	119,549	$	814,281	$	957,844
Southeast	166,302		315,208		123,209		604,719		626,506
Florida	137,900		321,841		110,040		569,781		637,418
Texas	136,325		294,814		77,125		508,264		568,974
North	268,011		360,202		91,260		719,473		803,174
Southwest	216,067		577,656		216,554		1,010,277		1,099,058
Other homebuilding (a)	48,390		283,770		77,513		409,673		1,904,847
	1,210,717		2,610,501		815,250		4,636,468		6,597,821
Financial Services	—		—		—		—		287,799
	$	1,210,717	$	2,610,501	$	815,250	$	4,636,468	$	6,885,620

(a) Other homebuilding primarily includes capitalized interest, cash and equivalents, income taxes receivable, intangibles, and other corporate items that are not allocated to the operating segments.

18

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

5. Investments in unconsolidated entities

We participate in a number of joint ventures with independent third parties. Many of these joint ventures purchase, develop, and/or sell land and homes in the U.S. and Puerto Rico. A summary of our joint ventures is presented below ($000’s omitted):

	March 31, 2012		December 31, 2011
Investments in joint ventures with debt non-recourse to PulteGroup	$	11,496	$	11,453
Investments in other active joint ventures	22,650		24,535
Total investments in unconsolidated entities	$	34,146	$	35,988
Total joint venture debt	$	11,022	$	11,107
PulteGroup proportionate share of joint venture debt:
Joint venture debt with limited recourse guaranties	$	1,156	$	1,202
Joint venture debt non-recourse to PulteGroup	2,061		2,009
PulteGroup's total proportionate share of joint venture debt	$	3,217	$	3,211

We recognized (income) expense from unconsolidated joint ventures of $(2.0) million and $(1.1) million during the three months ended March 31, 2012 and 2011, respectively. During the three months ended March 31, 2012 and 2011, we made capital contributions of $0.0 million and $2.0 million, respectively, and received capital and earnings distributions of $3.5 million and $1.4 million, respectively.

The timing of cash obligations under the joint venture and any related financing agreements varies by agreement and in certain instances is contingent upon the joint venture's sale of its land holdings. If additional capital contributions are required and approved, we would need to contribute our pro rata portion of those capital needs in order to not dilute our ownership in the joint ventures. While future capital contributions may be required, we believe the total amount of such contributions will be limited. Our maximum financial loss exposure related to joint ventures is unlikely to exceed the combined investment and limited recourse guaranty totals.

6. Shareholders’ equity

At March 31, 2012, we had remaining authorization to purchase $102.3 million of common stock. There have been no repurchases under authorized stock repurchase programs since 2006.

Under our stock-based compensation plans, we accept shares as payment under certain conditions related to stock option exercises and vesting of restricted stock, generally related to the payment of minimum tax obligations. During the three months ended March 31, 2012 or 2011, we repurchased $0.8 million and $1.0 million, respectively, of shares from employees under these plans. Such repurchases are excluded from the above noted stock repurchase authorization.

19

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

7. Income taxes

Our income tax expense (benefit) for the three months ended March 31, 2012 and 2011 was $(1.8) million and $(5.9) million, respectively. Due to the effects of changes in unrecognized tax benefits and the valuation allowance recorded against our deferred tax assets, our effective tax rates in 2012 and 2011 are not correlated to the amount of pretax loss. The income tax benefits for the three months ended March 31, 2012 and 2011 resulted primarily from the favorable resolution of certain federal and state income tax matters.

We had income taxes receivable of $29.7 million and $27.2 million at March 31, 2012 and December 31, 2011, respectively, which related primarily to amended federal and state income tax returns.

In accordance with ASC 740, "Income Taxes" ("ASC 740"), the Company evaluates its deferred tax assets to determine if a valuation allowance is required. At March 31, 2012 and December 31, 2011, we had net deferred tax assets of $2.5 billion. Based on our evaluation in accordance with ASC 740, we fully reserved the net deferred tax assets due to the uncertainty of realizing such deferred tax assets.  The ultimate realization of these deferred tax assets is dependent upon the generation of taxable income during future periods.  Changes in existing tax laws could also affect actual tax results and the valuation of deferred tax assets over time.  The accounting for deferred taxes is based upon an estimate of future results.  Differences between the estimated and actual results could have a material impact on our consolidated results of operations or financial position. To the extent that our results of operations improve, our deferred tax asset valuation allowance may be reduced.

As a result of our merger with Centex Corporation ("Centex") in August 2009, our ability to use certain of Centex’s pre-ownership change NOLs and built-in losses or deductions is limited by Section 382 of the Internal Revenue Code. Our Section 382 limitation is approximately $67.4 million per year for NOLs, losses realized on built-in loss assets that are sold within 60 months of the ownership change (i.e. before August 2014), and certain deductions. The limitation may result in a significant portion of Centex’s pre-ownership change NOL carryforwards and future recognized built-in losses or deductions not being available for use by the Company.

At March 31, 2012 we had $179.3 million of gross unrecognized tax benefits and $39.2 million of accrued interest and penalties. We are currently under examination by the IRS and various state taxing jurisdictions and anticipate finalizing certain of the examinations within the next twelve months. The final outcome of these examinations is not yet determinable. It is reasonably possible, within the next twelve months, that unrecognized tax benefits may decrease by up to $19.1 million, excluding interest and penalties, primarily due to expirations of certain statutes of limitations and potential settlements. The statute of limitations for our major tax jurisdictions remains open for examination for tax years 1998 to 2012.

8. Fair value disclosures

ASC 820, “Fair Value Measurements and Disclosures,” provides a framework for measuring fair value in generally accepted accounting principles and establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy can be summarized as follows:

Level 1	Fair value determined based on quoted prices in active markets for identical assets or liabilities.
Level 2	Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active.
Level 3	Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques.

20

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted):

Financial Instrument	Fair Value Hierarchy	Fair Value
		March 31, 2012			December 31, 2011
Measured at fair value on a recurring basis:
Residential mortgage loans available-for-sale	Level 2	$	184,164		$	258,075
Interest rate lock commitments	Level 2	4,704			3,551
Forward contracts	Level 2	481			(3,470		)
Whole loan commitments	Level 2	(46		)	11
Measured at fair value on a non-recurring basis:
Loans held for investment	Level 2	$	1,896		$	2,324
House and land inventory	Level 3	7,468			23,766
Disclosed at fair value:
Cash and equivalents (including restricted cash)	Level 1	$	1,301,604		$	1,184,931
Senior notes	Level 2	3,030,286			2,765,151

See Note 1 regarding the fair value of mortgage loans available-for-sale and derivative instruments and hedging activities. Certain assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recoverable. The non-recurring fair values included in the table above represent only those assets whose carrying values were adjusted to fair value in the current quarter. We measured certain loans held for investment at fair value since the cost of the loans exceeded their fair value. Fair value of the loans was determined based on the fair value of the underlying collateral. For inventory, see Note 3 for a more detailed discussion of the valuation methods used.

The carrying amounts of cash and equivalents approximate their fair values due to their short-term nature. The fair values of senior notes are based on quoted market prices, when available. If quoted market prices are not available, fair values are based on quoted market prices of similar issues.

21

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

9. Debt

Our senior notes are summarized as follows ($000’s omitted):

	March 31, 2012		December 31, 2011
5.45% unsecured senior notes due August 2012 (b)	$	96,634	$	96,795
6.25% unsecured senior notes due February 2013 (b)	62,692		62,677
5.125% unsecured senior notes due October 2013 (b)	117,522		117,197
5.25% unsecured senior notes due January 2014 (b)	255,887		255,882
5.70% unsecured senior notes due May 2014 (b)	312,613		311,900
5.20% unsecured senior notes due February 2015 (b)	207,916		207,906
5.25% unsecured senior notes due June 2015 (b)	271,557		270,551
6.50% unsecured senior notes due May 2016 (b)	469,774		469,147
7.625% unsecured senior notes due October 2017 (a)	149,400		149,373
7.875% unsecured senior notes due June 2032 (b)	299,119		299,108
6.375% unsecured senior notes due May 2033 (b)	398,436		398,418
6.00% unsecured senior notes due February 2035 (b)	299,396		299,390
7.375% unsecured senior notes due June 2046 (b)	150,000		150,000
Total senior notes – carrying value (c)	$	3,090,946	$	3,088,344
Estimated fair value	$	3,030,286	$	2,765,151

(a) Not redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries.

(b) Redeemable prior to maturity, guaranteed on a senior basis by certain wholly-owned subsidiaries.

(c) The recorded carrying value reflects the impact of various discounts and premiums that are amortized to interest cost over the respective terms of the senior notes.

Letter of credit facilities

As a cost-saving measure and to provide increased operational flexibility, we voluntarily terminated our $250.0 million unsecured revolving credit facility ("the Credit Facility") effective March 30, 2011. The Credit Facility was scheduled to expire in June 2012 and was being used solely to issue letters of credit. No borrowings were outstanding under the Credit Facility during 2011. We did not pay any penalties as a result of the termination. The termination of the Credit Facility also:

• released $250.0 million of cash required to be maintained in liquidity reserve accounts; and

• resulted in expense of $1.3 million related to the write-off of unamortized issuance costs, which is included within selling, general, and administrative expenses during the three months ended March 31, 2011.

In connection with the termination of the Credit Facility, we entered into separate cash-collateralized letter of credit agreements with a number of financial institutions. These agreements provide capacity to issue letters of credit totaling up to $190.0 million, the majority of which is uncommitted. Letters of credit totaling $71.3 million and $83.2 million were outstanding under these agreements at March 31, 2012 and December 31, 2011, respectively. Under these agreements, we are required to maintain deposits with these financial institutions in amounts approximating the letters of credit outstanding. Such deposits are included in restricted cash.

We also maintain an unsecured letter of credit facility with a bank that expires in June 2014. This facility permits the issuance of up to $200.0 million of letters of credit for general corporate purposes in support of any wholly-owned subsidiary. At March 31, 2012 and December 31, 2011, $148.0 million and $152.7 million, respectively, of letters of credit were outstanding under this facility.

22

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Financial Services

Pulte Mortgage provides mortgage financing for many of our home closings utilizing its own funds and funds available pursuant to a repurchase agreement with the Company. Pulte Mortgage uses these resources to finance its lending activities until the mortgage loans are sold to third party investors, generally within 30 days.

10. Commitments and contingencies

Loan origination liabilities

Our mortgage operations may be responsible for losses associated with mortgage loans originated and sold to investors in the event of errors or omissions relating to representations and warranties that the loans sold meet certain requirements, including representations as to underwriting standards, the existence of primary mortgage insurance, and the validity of certain borrower representations in connection with the loan. If determined to be at fault, we either repurchase the loans from the investors or reimburse the investors' losses (a “make-whole” payment).

We sell substantially all of the loans we originate to investors in the secondary market within a short period of time after origination. Historically, our overall losses relating to this risk were not significant. Beginning in 2009, however, we experienced a significant increase in losses as a result of the high level of loan defaults and related losses in the mortgage industry and increasing aggressiveness by investors in presenting such claims to us. To date, the significant majority of these losses relates to loans originated in 2006 and 2007, during which period inherently riskier loan products became more common in the mortgage origination market. In 2006 and 2007, we originated $39.5 billion of loans, excluding loans originated by Centex's former subprime loan business sold by Centex in 2006. Because we generally do not retain the servicing rights to the loans we originate, information regarding the current and historical performance, credit quality, and outstanding balances of such loans is limited. Estimating these loan origination liabilities is further complicated by uncertainties surrounding numerous external factors, such as various macroeconomic factors (including unemployment rates and changes in home prices), actions taken by third parties, including the parties servicing the loans, and the U.S. federal government in its dual capacity as regulator of the U.S. mortgage industry and conservator of the government-sponsored enterprises commonly known as Fannie Mae and Freddie Mac, which own or guarantee the majority of mortgage loans in the U.S.

Most requests received to date relate to make-whole payments on loans that have been foreclosed, generally after a portion of the loan principal had been paid down, which reduces our exposure. Requests undergo extensive analysis to confirm the exposure, attempt to cure the identified defect, and, when necessary, determine our liability. We establish liabilities for such anticipated losses based upon, among other things, the level of current unresolved repurchase requests, the volume of estimated probable future repurchase requests, our ability to cure the defects identified in the repurchase requests, and the severity of the estimated loss upon repurchase. Determining these estimates and the resulting liability requires a significant level of management judgment. We are generally able to cure or refute over 60% of the requests received from investors such that repurchases or make-whole payments are not required. For those requests requiring repurchases or make-whole payments, actual loss severities generally approximate 50% of the outstanding principal balance.

Our current estimates assume that claim volumes will not decline to pre-2009 levels until after 2013. Given the volatility in the mortgage industry and the uncertainty regarding the ultimate resolution of these claims, it is reasonably possible that future losses may exceed our current estimates. Changes in these liabilities were as follows ($000's omitted):

	Three Months Ended
	March 31,
	2012			2011
Liabilities, beginning of period	$	128,330		$	93,057
Provision for losses	—			—
Settlements	(4,810		)	(10,597		)
Liabilities, end of period	$	123,520		$	82,460

23

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

We entered into an agreement in conjunction with the wind down of Centex's mortgage operations, which ceased loan origination activities in December 2009, that provides a guaranty for one major investor of loans originated by Centex. This guaranty provides that we will honor the potential repurchase obligations of Centex's mortgage operations related to breaches of representations and warranties in the origination of a certain pool of loans. Other than with respect to this pool of loans, our contractual repurchase obligations are limited to our mortgage subsidiaries, which are included in non-guarantor subsidiaries (see Note 11 for a discussion of non-guarantor subsidiaries).

The mortgage subsidiary of Centex also sold loans to a bank for inclusion in residential mortgage-backed securities (“RMBSs”) issued by the bank. In connection with these sales, Centex's mortgage subsidiary entered into agreements pursuant to which it may be required to indemnify the bank for losses incurred by investors in the RMBSs arising out of material errors or omissions in certain information provided by the mortgage subsidiary relating to the loans and loan origination process. The bank has notified us that it has been named defendant in two lawsuits alleging various violations of federal and state securities laws asserting that untrue statements of material fact were included in the registration statements used to market the sale of two RMBS transactions, which included $162 million of loans originated by Centex's mortgage subsidiary. The plaintiffs seek unspecified compensatory and/or rescissory damages on behalf of persons who purchased the securities. Neither Centex's mortgage subsidiary nor the Company is named as a defendant in these actions. These actions are in their preliminary stage, and we cannot yet quantify Centex's mortgage subsidiary's potential liability as a result of these indemnification obligations. We do not believe, however, that these matters will have a material adverse impact on the results of operations, financial position, or cash flows of the Company. We are aware of six other RMBS transactions with such indemnity provisions that include an aggregate $116 million of loans, however, we are not aware of any current or threatened legal proceedings regarding those transactions.

Community development and other special district obligations

A community development district or similar development authority (“CDD”) is a unit of local government created under various state statutes that utilizes the proceeds from the sale of bonds to finance the construction or acquisition of infrastructure assets of a development. A portion of the liability associated with the bonds, including principal and interest, is assigned to each parcel of land within the development. This debt is typically paid by subsequent special assessments levied by the CDD on the landowners. Generally, we are only responsible for paying the special assessments for the period in which we are the landowner of the applicable parcels. However, in certain limited instances we record a liability for future assessments that are fixed or determinable for a fixed or determinable period in accordance with ASC 970-470, “Real Estate Debt”. At March 31, 2012 and December 31, 2011, we had recorded $37.4 million and $38.4 million, respectively, in accrued liabilities for outstanding CDD obligations. During the three months ended March 31, 2011, we repurchased at a discount prior to their maturity CDD obligations with an aggregate principal balance of $27.5 million in order to improve the future financial performance of the related communities. The discount of $5.3 million was recognized as a reduction of cost of revenues over the lives of the applicable communities, which will extend for several years. There were no repurchases during the three months ended March 31, 2012.

Letters of credit and surety bonds

In the normal course of business, we post letters of credit and surety bonds pursuant to certain performance-related obligations, as security for certain land option agreements, and under various insurance programs. The majority of these letters of credit and surety bonds are in support of our land development and construction obligations to various municipalities, other government agencies, and utility companies related to the construction of roads, sewers, and other infrastructure. We had outstanding letters of credit and surety bonds totaling $219.3 million and $1.2 billion at March 31, 2012, respectively, and $235.9 million and $1.2 billion at December 31, 2011, respectively. In the event any such letter of credit or surety bond is called, we would be obligated to reimburse the issuer of the letter of credit or surety bond. We do not believe that a material amount, if any, of the letters of credit or surety bonds will be called. Our surety bonds generally do not have stated expiration dates. Rather, we are released from the surety bonds as the underlying performance is completed and accepted by the applicable counterparty. Because significant construction and development work has been performed related to the applicable projects but has not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed.

24

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Litigation and regulatory matters

We are involved in various litigation and legal claims in the normal course of our business operations, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations.

We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss is reasonably estimable. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. In view of the inherent difficulty of predicting the outcome of these legal and regulatory matters, we generally cannot predict the ultimate resolution of the pending matters, the related timing, or the eventual loss. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. However, to the extent the liability arising from the ultimate resolution of any matter exceeds the estimates reflected in the recorded reserves relating to such matter, we could incur additional charges that could be significant.

Allowance for warranties

Home purchasers are provided with a limited warranty against certain building defects, including a one-year comprehensive limited warranty and coverage for certain other aspects of the home’s construction and operating systems for periods of up to ten years. We estimate the costs to be incurred under these warranties and record liabilities in the amount of such costs within Homebuilding home sale revenues at the time product revenue is recognized. Factors that affect our warranty liabilities include the number of homes sold, historical and anticipated rates of warranty claims, and the cost per claim. We periodically assess the adequacy of the warranty liabilities for each geographic market in which we operate and adjust the amounts as necessary. Actual warranty costs in the future could differ from the current estimates. Changes to warranty liabilities were as follows ($000’s omitted):

	Three Months Ended
	March 31,
	2012			2011
Warranty liabilities, beginning of period	$	68,025		$	80,195
Warranty reserves provided	7,851			9,089
Payments	(11,521		)	(14,007		)
Other adjustments	65			(623		)
Warranty liabilities, end of period	$	64,420		$	74,654

Self-insured risks

We maintain, and require our subcontractors to maintain, general liability insurance coverage. We also maintain builders' risk, property, errors and omissions, workers compensation, and other business insurance coverage. These insurance policies protect us against a portion of the risk of loss from claims. However, we retain a significant portion of the overall risk for such claims either through policies issued by our captive insurance subsidiaries or through our own self-insured per occurrence and aggregate retentions, deductibles, and claims in excess of available insurance policy limits.

Our general liability insurance includes coverage for certain construction defects. While construction defect claims can relate to a variety of circumstances, the majority of our claims relate to alleged problems with siding, plumbing, foundations and other concrete work, windows, roofing, and heating, ventilation and air conditioning systems. The availability of general liability insurance for the homebuilding industry and its subcontractors has become increasingly limited, and the insurance policies available require companies to maintain higher per occurrence and aggregate retention levels. In certain instances, we may offer our subcontractors the opportunity to purchase insurance through one of our captive insurance subsidiaries or to participate in a project-specific insurance program provided by the Company. Policies issued by the captive insurance subsidiaries represent self-insurance of these risks by the Company. This self-insured exposure is limited by reinsurance policies that we purchase. General liability coverage for the homebuilding industry is complex, and our coverage varies from policy year to policy year. We are self-insured for a per occurrence deductible,

25

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

which is capped at an overall aggregate retention level. Beginning with the first dollar, amounts paid on insured claims satisfy our per occurrence and aggregate retention obligations. Any amounts incurred in excess of the occurrence or aggregate retention levels are covered by insurance up to our purchased coverage levels. Our insurance policies, including the captive insurance subsidiaries' reinsurance policies, are maintained with highly-rated underwriters for whom we believe counterparty default risk is not significant.

At any point in time, we are managing over 1,000 individual claims related to general liability, property, errors and omission, workers compensation, and other business insurance coverage. We reserve for costs associated with such claims (including expected claims management expenses relating to legal fees, expert fees, and claims handling expenses) on an undiscounted basis at the time product revenue is recognized for each home closing and evaluate the recorded liabilities based on actuarial analyses of our historical claims. The actuarial analyses calculate an estimate of the ultimate net cost of all unpaid losses, including estimates for incurred but not reported losses ("IBNR"). IBNR represents losses related to claims incurred but not yet reported plus development on reported claims. These estimates make up a significant portion of our liability and are subject to a high degree of uncertainty due to a variety of factors, including changes in claims reporting and resolution patterns, third party recoveries, insurance industry practices, the regulatory environment, and legal precedent. State regulations vary, but construction defect claims are reported and resolved over an extended period often exceeding ten years. In certain instances, we have the ability to recover a portion of our costs under various insurance policies or from subcontractors or other third parties. Estimates of such amounts are recorded when recovery is considered probable.

Our recorded reserves for all such claims totaled $740.0 million and $774.8 million at March 31, 2012 and 2011, respectively, the vast majority of which relate to general liability claims. The recorded reserves include loss estimates related to both (i) existing claims and related claim expenses and (ii) IBNR and related claim expenses. Liabilities related to IBNR and related claim expenses represented approximately 78% of the total general liability reserves at March 31, 2012 and 2011. The actuarial analyses that determine the IBNR portion of reserves consider a variety of factors, including the frequency and severity of losses, which are based on our historical claims experience supplemented by industry data. The actuarial analyses of the reserves also consider historical third party recovery rates and claims management expenses.

Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. Because the majority of our recorded reserves relates to IBNR, adjustments to reserve amounts for individual existing claims generally do not impact the recorded reserves materially. However, changes in the frequency and timing of reported claims and the estimates of specific claim values can impact the underlying inputs and trends utilized in the actuarial analyses, which could have a material impact on the recorded reserves. Because of the inherent uncertainty in estimating future losses related to these claims, actual costs could differ significantly from estimated costs. Changes in these liabilities were as follows ($000's omitted):

	Three Months Ended
	March 31,
	2012			2011
Balance, beginning of period	$	741,383		$	785,562
Reserves provided	12,978			14,924
Payments	(14,337		)	(25,734		)
Balance, end of period	$	740,024		$	774,752

The reserves provided reflected in the above table are classified within selling, general, and administrative expenses.

11. 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.    

26

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

CONDENSED CONSOLIDATING BALANCE SHEET

MARCH 31, 2012

($000’s omitted)

	Unconsolidated								Eliminating Entries			Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries
ASSETS
Cash and equivalents	$	129,287		$	998,732	$	83,716		$	—		$	1,211,735
Restricted cash	71,261			3,755		14,853			—			89,869
House and land inventory	—			4,580,285		4,131			—			4,584,416
Land held for sale	—			136,232		—			—			136,232
Land, not owned, under option        agreements	—			26,121		—			—			26,121
Residential mortgage loans available-        for-sale	—			—		184,164			—			184,164
Securities purchased under agreements        to resell	54,513			—		(54,513		)	—			—
Investments in unconsolidated entities	1,529			29,914		2,703			—			34,146
Income taxes receivable	29,673			—		—			—			29,673
Other assets	20,010			350,709		33,295			—			404,014
Intangible assets	—			159,073		—			—			159,073
Deferred income tax assets	(15,517		)	23		15,494			—			—
Investments in subsidiaries and        intercompany accounts, net	5,029,795			6,756,981		6,069,822			(17,856,598		)	—
	$	5,320,551		$	13,041,825	$	6,353,665		$	(17,856,598	)	$	6,859,443
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, customer deposits,        accrued and other liabilities	$	85,627		$	1,273,759	$	265,133		$	—		$	1,624,519
Income tax liabilities	215,150			—		—			—			215,150
Senior notes	3,090,946			—		—			—			3,090,946
Total liabilities	3,391,723			1,273,759		265,133			—			4,930,615
Total shareholders’ equity	1,928,828			11,768,066		6,088,532			(17,856,598		)	1,928,828
	$	5,320,551		$	13,041,825	$	6,353,665		$	(17,856,598	)	$	6,859,443

27

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2011

($000’s omitted)

	Unconsolidated								Eliminating Entries			Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries
ASSETS
Cash and equivalents	$	119,287		$	875,561	$	88,223		$	—		$	1,083,071
Restricted cash	83,199			3,255		15,406			—			101,860
House and land inventory	—			4,632,337		4,131			—			4,636,468
Land held for sale	—			135,307		—			—			135,307
Land, not owned, under option        agreements	—			24,905		—			—			24,905
Residential mortgage loans available-        for-sale	—			—		258,075			—			258,075
Securities purchased under agreements        to resell	127,327			—		(127,327		)	—			—
Investments in unconsolidated entities	1,527			31,836		2,625			—			35,988
Income taxes receivable	27,154			—		—			—			27,154
Other assets	20,983			364,747		34,714			—			420,444
Intangible assets	—			162,348		—			—			162,348
Deferred income tax assets	(15,517		)	23		15,494			—			—
Investments in subsidiaries and        intercompany accounts, net	4,937,002			6,533,838		6,366,758			(17,837,598		)	—
	$	5,300,962		$	12,764,157	$	6,658,099		$	(17,837,598	)	$	6,885,620
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, customer deposits,        accrued and other liabilities	$	70,690		$	1,310,972	$	273,686		$	—		$	1,655,348
Income tax liabilities	203,313			—		—			—			203,313
Senior notes	3,088,344			—		—			—			3,088,344
Total liabilities	3,362,347			1,310,972		273,686			—			4,947,005
Total shareholders’ equity	1,938,615			11,453,185		6,384,413			(17,837,598		)	1,938,615
	$	5,300,962		$	12,764,157	$	6,658,099		$	(17,837,598	)	$	6,885,620

28

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the three months ended March 31, 2012

($000’s omitted)

	Unconsolidated												Consolidated PulteGroup,  Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	813,786		$	—		$	—		$	813,786
Land sale revenues	—			38,398			—			—			38,398
	—			852,184			—			—			852,184
Financial Services	—			373			28,479			—			28,852
	—			852,557			28,479			—			881,036
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			712,166			—			—			712,166
Land sale cost of revenues	—			33,397			—			—			33,397
	—			745,563			—			—			745,563
Financial Services expenses	65			114			21,830			—			22,009
Selling, general and administrative        expenses	—			122,407			907			—			123,314
Other expense (income), net	(19		)	6,291			347			—			6,619
Interest income	(62		)	(1,113		)	(24		)	—			(1,199		)
Interest expense	217			—			—			—			217
Intercompany interest	109,133			(105,892		)	(3,241		)	—			—
Equity in (earnings) loss of        unconsolidated entities	(2		)	(1,916		)	(78		)	—			(1,996		)
Income (loss) before income taxes and        equity in income (loss) of        subsidiaries	(109,332		)	87,103			8,738			—			(13,491		)
Income tax expense (benefit)	29,191			(5,744		)	(25,272		)	—			(1,825		)
Income (loss) before equity in income        (loss) of subsidiaries	(138,523		)	92,847			34,010			—			(11,666		)
Equity in income (loss) of subsidiaries	126,857			34,483			50,131			(211,471		)	—
Net income (loss)	(11,666		)	127,330			84,141			(211,471		)	(11,666		)
Other comprehensive income (loss)	57			—			—			—			57
Comprehensive income (loss)	$	(11,609	)	$	127,330		$	84,141		$	(211,471	)	$	(11,609	)

29

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the three months ended March 31, 2011

($000’s omitted)

	Unconsolidated											Consolidated PulteGroup,  Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	782,471		$	—		$	—	$	782,471
Land sale revenues	—			1,296			—			—		1,296
	—			783,767			—			—		783,767
Financial Services	—			283			21,152			—		21,435
	—			784,050			21,152			—		805,202
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			685,030			—			—		685,030
Land sale cost of revenues	—			930			—			—		930
	—			685,960			—			—		685,960
Financial Services expenses	145			146			20,182			—		20,473
Selling, general and administrative        expenses	10,993			129,293			2,160			—		142,446
Other expense (income), net	41			4,743			(874		)	—		3,910
Interest income	—			(1,327		)	(110		)	—		(1,437		)
Interest expense	351			—			—			—		351
Intercompany interest	10,712			(8,644		)	(2,068		)	—		—
Equity in (earnings) loss of        unconsolidated entities	—			(1,049		)	(60		)	—		(1,109		)
Income (loss) before income taxes and        equity in income (loss) of        subsidiaries	(22,242		)	(25,072		)	1,922			—		(45,392		)
Income tax expense (benefit)	(707		)	(5,801		)	642			—		(5,866		)
Income (loss) before equity in income        (loss) of subsidiaries	(21,535		)	(19,271		)	1,280			—		(39,526		)
Equity in income (loss) of subsidiaries	(17,991		)	1,560			(67,311		)	83,742		—
Net income (loss)	(39,526		)	(17,711		)	(66,031		)	83,742		(39,526		)
Other comprehensive income (loss)	(42		)	—			—			—		(42		)
Comprehensive income (loss)	$	(39,568	)	$	(17,711	)	$	(66,031	)	$	83,742	$	(39,568	)

30

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2012

($000’s omitted)

	Unconsolidated											Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Net cash provided by (used in)    operating activities	$	(106,147	)	$	115,341		$	105,496		$	—	$	114,690
Cash flows from investing activities:
Investments in unconsolidated entities	—			(49		)	—			—		(49		)
Net change in loans held for investment	—			—			293			—		293
Change in restricted cash related to      letters of credit	11,938			—			—			—		11,938
Proceeds from the sale of fixed assets	—			4,475			—			—		4,475
Capital expenditures	—			(3,249		)	(509		)	—		(3,758		)
Net cash provided by (used in) investing    activities	11,938			1,177			(216		)	—		12,899
Cash flows from financing activities:
Net borrowings (repayments) of other      borrowings	—			1,920			—			—		1,920
Intercompany activities, net	105,054			4,733			(109,787		)	—		—
Stock repurchases	(845		)	—			—			—		(845		)
Net cash provided by (used in)    financing activities	104,209			6,653			(109,787		)	—		1,075
Net increase (decrease) in cash and    equivalents	10,000			123,171			(4,507		)	—		128,664
Cash and equivalents at beginning of    period	119,287			875,561			88,223			—		1,083,071
Cash and equivalents at end of period	$	129,287		$	998,732		$	83,716		$	—	$	1,211,735

31

PULTEGROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2011

($000’s omitted)

	Unconsolidated											Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Net cash provided by (used in)     operating activities	$	4,542		$	(73,387	)	$	19,204		$	—	$	(49,641	)
Cash flows from investing activities:
Distributions from unconsolidated      entities	—			1,021			—			—		1,021
Investments in unconsolidated entities	—			(1,968		)	—			—		(1,968		)
Net change in loans held for investment	—			—			255			—		255
Change in restricted cash related to     letters of credit	(109,667		)	—			—			—		(109,667		)
Proceeds from the sale of fixed assets	—			2,441			—			—		2,441
Capital expenditures	—			(5,097		)	(1,031		)	—		(6,128		)
Net cash provided by (used in) investing     activities	(109,667		)	(3,603		)	(776		)	—		(114,046		)
Cash flows from financing activities:
Net borrowings (repayments) of other      borrowings	(13,902		)	590			—			—		(13,312		)
Intercompany activities, net	202,578			(154,222		)	(48,356		)	—		—
Stock repurchases	(969		)	—			—			—		(969		)
Net cash provided by (used in)    financing activities	187,707			(153,632		)	(48,356		)	—		(14,281		)
Net increase (decrease) in cash and     equivalents	82,582			(230,622		)	(29,928		)	—		(177,968		)
Cash and equivalents at beginning of     period	10,000			1,106,623			366,767			—		1,483,390
Cash and equivalents at end of period	$	92,582		$	876,001		$	336,839		$	—	$	1,305,422

32

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Overview

The first quarter of 2012 continued many of the favorable trends we experienced in 2011 as revenues, adjusted gross margin, and overhead costs all improved compared to the first quarter of 2011. These factors combined to drive a significant decrease in our reported loss before income taxes compared to the prior year. Consistent with other signs of an overall improving demand environment for new homes, our net new orders increased 15% over the first quarter of 2011 on 6% fewer active communities.

We believe the demand for new homes remains relatively stable, albeit at near historically low volumes. An improved outlook for the U.S. economy, coupled with the value in new housing resulting from affordable prices, low mortgage rates, escalating rents, and more energy-efficient homes are providing consumers with a compelling reason to buy a new home, especially relative to the ever more expensive rental market. We are encouraged by our first quarter results, and our outlook remains cautiously optimistic for 2012. However, the timing of a broad, sustainable recovery in the homebuilding industry remains uncertain. In the long-term, we continue to believe that the national publicly-traded builders will have a competitive advantage over local builders through their: ability to leverage economies of scale; access to more reliable and lower cost financing through the capital markets; ability to control and entitle large land positions; and greater geographic and product diversification. Among the national publicly-traded peer group, we believe that builders with more significant land positions, broad geographic and product diversity, and sustainable capital positions will benefit as market conditions recover. In the short-term, we will operate our business with the expectation that challenging market conditions will continue while also positioning ourselves to capitalize upon growth when industry conditions improve. We continue to focus on our primary operational objectives:

• Revenue enhancement by establishing clear business models for each of our brands based on systematic, consumer-driven input, optimizing our pricing through the expanded use of options and lot premiums, and lessening our reliance on “speculative” home sales;

• Reducing our house costs through common house plan management, value-engineering our house plans, working with suppliers to reduce costs, and following lean production principles;

• Maintaining an efficient overhead structure;

• Improving our inventory turns; and

• More effectively allocating the capital invested in our business toward a more risk-based portfolio approach.

Certain initiatives related to our overhead objectives favorably impacted our first quarter results, while benefits related to our other objectives will be increasingly realized over the long term. We believe that continued focus on our operational objectives positions us for a profitable year in 2012. As a result of the seasonality in our operations, we expect our profitability for 2012 to be heavily weighted toward the second half of the year.

33

The following is a summary of our operating results by line of business ($000's omitted, except per share data):

	Three Months Ended
	March 31,
	2012			2011
Income (loss) before income taxes:
Homebuilding*	$	(20,352	)	$	(46,365	)
Financial Services	6,861			973
Income (loss) from continuing operations before income taxes	(13,491		)	(45,392		)
Income tax expense (benefit)	(1,825		)	(5,866		)
Net income (loss)	$	(11,666	)	$	(39,526	)
Per share data - assuming dilution:
Net income (loss)	$	(0.03	)	$	(0.10	)

* Amounts previously classified as "non-operating" have been reclassified to "Homebuilding" (see Note 4 to the Consolidated Financial Statements).

• The loss before income taxes experienced by Homebuilding for the three months ended March 31, 2012 improved compared to the prior year period as a result of higher revenues, improved adjusted gross margins and overhead leverage, and gains from certain land sale transactions partially offset by higher land-related charges and amortization of capitalized interest.

• The increased Financial Services income for the three months ended March 31, 2012 compared to the three months ended March 31, 2011 was due to higher origination volume, higher revenue per loan, and improved expense leverage.

• The income tax benefits for the three months ended March 31, 2012 and 2011 were attributable primarily to the favorable resolution of certain federal and state income tax matters.

34

Homebuilding Operations

The following is a summary of income (loss) before income taxes for our Homebuilding operations ($000’s omitted):

	Three Months Ended
	March 31,
	2012			2012 vs. 2011		2011
Home sale revenues	$	813,786		4	%	$	782,471
Land sale revenues	38,398			2,863	%	1,296
Total Homebuilding revenues	852,184			9	%	783,767
Home sale cost of revenues (a)	712,166			4	%	685,030
Land sale cost of revenues (b)	33,397			3,491	%	930
Selling, general and administrative expenses ("SG&A")	123,314			(13	)%	142,446
Equity in (earnings) loss of unconsolidated entities	(1,978		)	80	%	(1,098		)
Other expense (income), net (c)	6,619			69	%	3,910
Interest income, net	(982		)	(10	)%	(1,086		)
Income (loss) before income taxes	$	(20,352	)	56	%	$	(46,365	)
Supplemental data:
Gross margin from home sales	12.5		%	0 bps		12.5		%
SG&A as a percentage of home sale revenues	15.2		%	(300) bps		18.2		%
Closings (units)	3,117			(1	)%	3,141
Average selling price	$	261		5	%	$	249
Net new orders:
Units	4,991			15	%	4,345
Dollars (d)	$	1,339,977		23	%	$	1,093,634
Cancellation rate	15		%			16		%
Active communities at March 31	753			(6	)%	800
Backlog at March 31:
Units	5,798			12	%	5,188
Dollars	$	1,585,840		16	%	$	1,367,725

(a) Includes the amortization of capitalized interest. Home sale cost of revenues also includes land and community valuation adjustments of $4.5 million and $0.1 million for the three months ended March 31, 2012 and 2011, respectively.

(b) Includes net realizable value adjustments for land held for sale of $0.6 million for the three months ended March 31, 2012. There were no net realizable value adjustments for land held for sale for the three months ended March 31, 2011.

(c) Includes the write-off of deposits and pre-acquisition costs for land option contracts we elected not to pursue of $0.7 million and $0.6 million for the three months ended March 31, 2012 and 2011, respectively.

(d) Net new order dollars represent a composite of new order dollars combined with other movements of the dollars in backlog related to cancellations and change orders.

Home sale revenues

Home sale revenues for the three months ended March 31, 2012 were higher than the prior year period by $31.3 million, or 4%. The increase was attributable to a 5% increase in average selling price, partially offset by a 1% decrease in closings. The increase in average selling price reflects an ongoing modest shift in our revenue mix toward move-up buyers and newer communities. The slight decline in closings was mainly due to the 6% decrease in our active communities and was the result of small decreases in our Southeast and Florida segments partially offset by small increases in our other segments.

35

Home sale gross margins

Home sale gross margins were 12.5% for the three months ended March 31, 2012, unchanged from the prior year period, despite an increase of $4.4 million in land and community valuation adjustments (including write-offs of capitalized interest) and $11.6 million of increased amortization of capitalized interest due primarily to debt assumed with our 2009 merger with Centex Corporation ("Centex"). Excluding the impact of land and community valuation adjustments and amortization of capitalized interest, adjusted home sale gross margins improved to 18.7% for the three months ended March 31, 2012 from 16.9% for the prior year period (see the Non-GAAP Financial Measures section for a reconciliation of adjusted home sale gross margins). These improved gross margins reflect a combination of factors, including shifts in the product mix of homes closed and better alignment of our product offering with current market conditions.

Land sales

We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land sale revenues and their related gains or losses vary between periods, depending on the timing of land sales and our strategic operating decisions. Land sales had margin contributions of $5.0 million and $0.4 million for the three months ended March 31, 2012 and 2011, respectively. These margin contributions included net realizable value adjustments related to land held for sale totaling $0.6 million for the three months ended March 31, 2012. There were no net realizable value adjustments related to land held for sale for the prior year period.

SG&A

In order to reduce overhead costs and drive greater leverage, we have reconfigured our organization in recent years to better align our overhead structure with expected volumes. These actions have included consolidating many local divisions and other field operations along with reducing corporate and support staffing across a number of functions. Based in part on these actions, the gross dollar amount of our SG&A decreased $19.1 million, or 13%, for the three months ended March 31, 2012 compared to the same period in the prior year. SG&A as a percentage of home sale revenues was 15.2% for the three months ended March 31, 2012, compared with 18.2% for the three months ended March 31, 2011.

Equity in (earnings) loss of unconsolidated entities

Equity in (earnings) loss of unconsolidated entities was $(2.0) million and $(1.1) million for the three months ended March 31, 2012 and 2011, respectively. The majority of our unconsolidated entities represent land development joint ventures. As a result, the timing of income and losses varies between periods depending on the timing of transactions and circumstances specific to each entity.

Other expense (income), net

Other expense (income), net includes the following ($000’s omitted):

	Three Months Ended
	March 31,
	2012		2011
Write-offs of deposits and pre-acquisition costs (Note 3)	$	739	$	623
Lease exit and related costs (Note 2)	2,359		(82		)
Amortization of intangible assets	3,275		3,275
Miscellaneous expense (income), net	246		94
	$	6,619	$	3,910

For additional information on each of the above, see the applicable Notes to the Consolidated Financial Statements.

Interest income, net

The slight decrease in interest income, net from the prior year period resulted from lower invested cash balances, which resulted primarily from the significant debt retirements we completed during 2011.

36

Net new orders

For the three months ended March 31, 2012, net new order levels increased 15% compared with the same period in 2011 despite a decrease of 6% in the number of active communities to 753 active communities. The increase in net new orders was broad-based as each of our reportable segments experienced increases as did the majority of our local divisions. The cancellation rate (canceled orders for the period divided by gross new orders for the period) for the three months ended March 31, 2012 was 15%, compared to 16% for the prior year period. Ending backlog, which represents orders for homes that have not yet closed, increased 12% at March 31, 2012 compared with March 31, 2011, due to the increase in net new orders.

Homes in production

The following is a summary of our homes in production at March 31, 2012 and December 31, 2011:

	March 31, 2012	December 31, 2011
Sold	3,442	2,640
Unsold
Under construction	985	1,381
Completed	1,039	1,481
	2,024	2,862
Models	1,235	1,278
Total	6,701	6,780

Included in our total homes in production were 2,024 and 2,862 homes that were unsold to customers (“spec homes”) at March 31, 2012 and December 31, 2011, respectively, of which 1,039 and 1,481 homes, respectively, were completed (“final specs”). The reduction in homes in production at March 31, 2012 compared to December 31, 2011 resulted primarily from our lower community count combined with a focus on reducing the number of spec homes, especially final specs.

Controlled lots

The following is a summary of our lots under control at March 31, 2012 and December 31, 2011:

	March 31, 2012						December 31, 2011
	Owned		Optioned		Controlled		Owned		Optioned		Controlled
Northeast	10,293		2,187		12,480		10,540		2,121		12,661
Southeast	14,557		2,856		17,413		15,016		3,215		18,231
Florida	25,614		2,580		28,194		26,444		2,136		28,580
Texas	14,316		3,887		18,203		14,759		4,231		18,990
North	14,867		1,148		16,015		15,084		1,676		16,760
Southwest	34,582		1,341		35,923		35,090		698		35,788
Total	114,229		13,999		128,228		116,933		14,077		131,010
Developed (%)	29	%	37	%	29	%	28	%	38	%	29	%

Of our controlled lots, 114,229 and 116,933 were owned and 10,110 and 10,060 were under option agreements approved for purchase at March 31, 2012 and December 31, 2011, respectively. In addition, there were 3,889 and 4,017 lots under option agreements pending approval at March 31, 2012 and December 31, 2011, respectively. While we are purchasing land positions where it makes strategic and economic sense to do so, the reduction in lots resulting from closings, land disposition activity, and withdrawals from land option contracts exceeded the number of lots added by new transactions during the three months ended March 31, 2012.

The remaining purchase price related to land under option for use by our Homebuilding operations at future dates totaled $699.4 million at March 31, 2012. These land option agreements, which generally may be canceled at our discretion and in certain cases extend over several years, are secured by deposits and pre-acquisition costs totaling $56.4 million, of which only $2.8 million is refundable.

37

Non-GAAP Financial Measures

This report contains information about our home sale gross margins reflecting certain adjustments. This measure is considered a non-GAAP financial measure under the SEC's rules and should be considered in addition to, rather than as a substitute for, the comparable GAAP financial measure as a measure of our operating performance. Management and our local divisions use this measure in evaluating the operating performance of each community and in making strategic decisions regarding sales pricing, construction and development pace, product mix, and other daily operating decisions. We believe it is a relevant and useful measure to investors for evaluating our performance through gross profit generated on homes delivered during a given period and for comparing our operating performance to other companies in the homebuilding industry. Although other companies in the homebuilding industry report similar information, the methods used may differ. We urge investors to understand the methods used by other companies in the homebuilding industry to calculate gross margins and any adjustments thereto before comparing our measure to that of such other companies.

The following table sets forth a reconciliation of this non-GAAP financial measure to the GAAP financial measure that management believes to be most directly comparable ($000's omitted):

Home sale gross margin
	Three Months Ended
	March 31,
	2012			2011
Home sale revenues	$	813,786		$	782,471
Home sale cost of revenues	712,166			685,030
Home sale gross margin	101,620			97,441
Add:
Land and community valuation adjustments (a)	3,700			41
Capitalized interest amortization (a)	47,186			34,816
Adjusted home sale gross margin	$	152,506		$	132,298
Home sale gross margin as a percentage of home sale revenues	12.5		%	12.5		%
Adjusted home sale gross margin as a percentage of home sale revenues	18.7		%	16.9		%

(a) Write-offs of capitalized interest related to land and community valuation adjustments are reflected in capitalized interest amortization.

Homebuilding Segment Operations

Our homebuilding operations represent our core business. Homebuilding offers a broad product line to meet the needs of homebuyers in our targeted markets. As of March 31, 2012, we conducted our operations in 60 markets located throughout 29 states. During 2011, we realigned our organizational structure and reportable segment presentation. As part of the change in presentation, we removed the "Other non-operating" distinction. Amounts previously classified within "Other non-operating" have been reclassified to "Other homebuilding." Accordingly, the segment information provided in this note has been reclassified to conform to the current presentation for all periods presented.

Northeast:	Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, Virginia
Southeast:	Georgia, North Carolina, South Carolina, Tennessee
Florida:	Florida
Texas:	Texas
North:	Illinois, Indiana, Michigan, Minnesota, Missouri, Northern California, Ohio, Oregon, Washington
Southwest:	Arizona, Colorado, Hawaii, Nevada, New Mexico, Southern California

We also have one reportable segment for our financial services operations, which consist principally of mortgage banking and title operations. The Financial Services segment operates generally in the same markets as the Homebuilding segments.

38

The following tables present selected financial information for our reportable Homebuilding segments:

	Operating Data by Segment ($000's omitted)
	Three Months Ended
	March 31,
	2012			2012 vs. 2011		2011
Home sale revenues:
Northeast	$	139,929		11	%	$	126,286
Southeast	133,400			(6	)%	142,555
Florida	118,882			3	%	115,879
Texas	129,291			(1	)%	130,874
North	155,958			16	%	134,044
Southwest	136,326			3	%	132,833
	$	813,786		4	%	$	782,471
Income (loss) before income taxes:
Northeast	$	6,496		1,412	%	$	(495	)
Southeast	5,013			21	%	4,152
Florida	5,503			5,459	%	99
Texas	7,046			82	%	3,878
North	3,141			161	%	(5,161		)
Southwest	(941		)	81	%	(5,063		)
Other homebuilding (a)	(46,610		)	(6	)%	(43,775		)
	$	(20,352	)	56	%	$	(46,365	)
Closings (units):
Northeast	352			1	%	348
Southeast	535			(9	)%	589
Florida	476			(3	)%	492
Texas	699			1	%	695
North	531			7	%	494
Southwest	524			—	%	523
	3,117			(1	)%	3,141
Average selling price:
Northeast	$	398		10	%	$	363
Southeast	249			3	%	242
Florida	250			6	%	236
Texas	185			(2	)%	188
North	294			8	%	271
Southwest	260			2	%	254
	$	261		5	%	$	249

(a) Other homebuilding includes the amortization of intangible assets and capitalized interest and other costs not allocated to the operating segments.

39

The following tables present additional selected financial information for our reportable Homebuilding segments:

	Operating Data by Segment ($000's omitted)
	Three Months Ended
	March 31,
	2012			2012 vs. 2011		2011
Net new orders - units:
Northeast	553			15	%	482
Southeast	774			3	%	748
Florida	768			4	%	736
Texas	1,109			6	%	1,048
North	869			32	%	658
Southwest	918			36	%	673
	4,991			15	%	4,345
Net new orders - dollars:
Northeast	$	220,308		18	%	$	186,163
Southeast	193,951			6	%	182,948
Florida	207,374			17	%	177,551
Texas	205,795			8	%	190,602
North	265,219			43	%	185,903
Southwest	247,330			45	%	170,467
	$	1,339,977		23	%	$	1,093,634
Cancellation rates:
Northeast	9		%			11		%
Southeast	14		%			15		%
Florida	12		%			9		%
Texas	22		%			23		%
North	14		%			15		%
Southwest	12		%			18		%
	15		%			16		%
Unit backlog:
Northeast	626			(9	)%	690
Southeast	841			(6	)%	890
Florida	950			13	%	839
Texas	1,235			1	%	1,227
North	1,047			28	%	817
Southwest	1,099			52	%	725
	5,798			12	%	5,188
Backlog dollars:
Northeast	$	259,313		(7	)%	$	279,286
Southeast	215,084			(4	)%	224,057
Florida	262,531			24	%	211,797
Texas	230,432			3	%	222,734
North	316,768			33	%	238,363
Southwest	301,712			58	%	191,488
	$	1,585,840		16	%	$	1,367,725

40

The following table presents additional selected financial information for our reportable Homebuilding segments:

	Operating Data by Segment ($000's omitted)
	Three Months Ended
	March 31,
	2012		2012 vs. 2011		2011
Land-related charges*:
Northeast	$	51	(81	)%	$	263
Southeast	840		241	%	246
Florida	49		100	%	—
Texas	25		92	%	13
North	1,868		2,913	%	62
Southwest	2,249		2,711	%	80
Other homebuilding	814		1,213	%	62
	$	5,896	712	%	$	726

* Land-related charges include land and community valuation adjustments, net realizable value adjustments for land held for sale, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue. See and to the Consolidated Financial Statements for additional discussion of these charges.

Northeast

For the three months ended March 31, 2012, Northeast home sale revenues increased 11% compared with the prior year period due to a 10% increase in the average selling price and a 1% increase in closings. The increased revenues were largely concentrated in our Mid-Atlantic division. The increased income before income taxes was primarily due to fewer land-related charges and improved gross margins and overhead leverage. Net new orders increased 15%, led by our operations in the Northeast Corridor and Mid-Atlantic.

Southeast

For the first quarter of 2012, Southeast home sale revenues decreased 6% compared with the prior year period due to a 9% decrease in closings offset in part by a 3% increase in the average selling price. The reduction in closing volumes was primarily due to fewer closings in our Raleigh and Tennessee divisions, as well as a lower active community count across most divisions. The increased income before income taxes was due to improved gross margins and overhead leverage. Net new order units increased 3%, due largely to increased activity in our Coastal Carolinas division partially offset by lower net new orders in Raleigh.

Florida

Florida home sale revenues increased 3% during the first quarter of 2012 compared with the prior year period due to a 6% increase in the average selling price partially offset by a 3% decrease in closings. The decline in closings was due to reduced closing volumes in South Florida due to fewer active communities than the prior year period. The increased income before income taxes for the three months ended March 31, 2012 was attributable to significantly improved gross margins and reduced overhead. Net new orders increased by 4%, led by our South Florida division.

Texas

For the first quarter of 2012, Texas home sale revenues decreased 1% compared with the prior year period due to a 2% decrease in the average selling price partially offset by a 1% increase in closings. The increased income before income taxes was attributable to improved gross margins and reduced overhead. Net new orders increased by 6%, largely in Dallas.

North

For the first quarter of 2012, North home sale revenues increased 16% compared with the prior year period due to a 7% increase in closings combined with an 8% increase in average selling price. The increase in closing volumes was concentrated in Michigan, Illinois, and St. Louis. The increased income before income taxes was primarily due to the increased revenues, lower overhead costs, and gains related to land sale transactions partially offset by higher land sale charges. Net new orders increased by 32% compared with the prior year period, due to significant increases in most of our local divisions.

41

Southwest

Southwest home sale revenues increased 3% during the first quarter of 2012 compared with the prior year period due to a 2% increase in average selling price. Closing volumes were flat as an increase in Arizona was offset by decreased volumes in the other divisions. The decreased loss before income taxes was primarily due to the higher revenues, improved gross margins, and lower overhead partially offset by higher land-related charges. Net new orders increased by 36% due to significantly improved activity in our Arizona, Las Vegas, and Southern California markets.

Financial Services Operations

We conduct our Financial Services operations, which include mortgage and title operations, through Pulte Mortgage and other subsidiaries. In originating mortgage loans, we initially use our own funds, including funds available pursuant to a repurchase agreement between Pulte Mortgage and the Company. We subsequently sell such mortgage loans to outside investors. Substantially all of the loans we originate are sold in the secondary market within a short period of time after origination. We sell the servicing rights for the loans we originate on a flow basis through fixed price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning the servicing rights for only a short period of time.

Operating as a captive business model primarily targeted to supporting our Homebuilding operations, the operating results of our Financial Services operations are highly correlated to Homebuilding. Our Homebuilding customers continue to account for substantially all loan production, representing 99% of loan originations for both the first quarter of 2012 and 2011.

The following table presents selected financial information for our Financial Services operations ($000’s omitted):

	Three Months Ended
	March 31,
	2012			2012 vs. 2011		2011
Mortgage operations revenues	$	24,448		39	%	$	17,558
Title services revenues	4,404			14	%	3,877
Total Financial Services revenues	28,852			35	%	21,435
Expenses	22,009			8	%	20,473
Equity in (earnings) loss of unconsolidated    entities	(18		)	64	%	(11		)
Income (loss) before income taxes	$	6,861		605	%	$	973
Total originations:
Loans	2,021			8	%	1,865
Principal	$	429,465		14	%	$	377,972
Supplemental data:
Capture rate	78.3		%			76.5		%
Average FICO score	742					750
Loan application backlog	$	965,875		32	%	$	730,095
Agency production for funded    originations	99		%			99		%
FHA agency production	29		%			32		%

42

Revenues

Total Financial Services revenues during the three months ended March 31, 2012 increased 35% compared to the prior year period as the result of an 8% increase in loan origination volumes, an increase in average loan size, and improved loan pricing. The increase in loan origination volumes, despite lower Homebuilding closing volumes, was due to the improved capture rate (loan originations from our Homebuilding operations as a percentage of total loan opportunities from our Homebuilding operations, excluding cash closings) and fewer cash sales. Interest income, which is included in mortgage operations revenues, was moderately higher for the three months ended March 31, 2012 than the comparable prior year period due to the increase in loan originations.

Since 2007, the mortgage industry has experienced a significant overall tightening of lending standards and a shift toward agency production and fixed rate loans versus adjustable rate mortgages (“ARMs”) and unconventional loans. The substantial majority of loan production in the first quarters of 2012 and 2011 consisted of fixed rate loans, the majority of which are prime, conforming loans. The shift toward agency fixed-rate loans has contributed to profitability as such loans generally result in higher profitability due to higher servicing values and structured guidelines that allow for expense efficiencies when processing the loan. Additionally, the historically low interest rate environment in recent periods has contributed to profitability by reducing the level of pricing competition in the market.

Loan origination liabilities

Our mortgage operations may be responsible for losses associated with mortgage loans originated and sold to investors in the event of errors or omissions relating to representations and warranties that the loans sold meet certain requirements, including representations as to underwriting standards, the existence of primary mortgage insurance, and the validity of certain borrower representations in connection with the loan. If determined to be at fault, we either repurchase the loans from the investors or reimburse the investors' losses (a “make-whole” payment).

Historically, our overall losses relating to this risk were not significant Beginning in 2009, however, we experienced a significant increase in losses as a result of the high level of loan defaults and related losses in the mortgage industry and increasing aggressiveness by investors in presenting such claims to us. To date, the significant majority of these losses relates to loans originated in 2006 and 2007, during which period inherently riskier loan products became more common in the mortgage origination market. Given the volatility in the mortgage industry and the uncertainty regarding the ultimate resolution of these claims, it is reasonably possible that future losses may exceed our current estimates. See Note 10 to the Consolidated Financial Statements for additional discussion.

We entered into an agreement in conjunction with the wind down of Centex's mortgage operations, which ceased loan origination activities in December 2009, that provides a guaranty for one major investor of loans originated by Centex. This guaranty provides that we will honor the potential repurchase obligations of Centex's mortgage operations related to breaches of representations and warranties in the origination of a certain pool of loans. Other than with respect to this pool of loans, our contractual repurchase obligations are limited to our mortgage subsidiaries, which are included in non-guarantor subsidiaries (see Note 11 for a discussion of non-guarantor subsidiaries).

The mortgage subsidiary of Centex also sold loans to a bank for inclusion in residential mortgage-backed securities (“RMBSs”) issued by the bank. In connection with these sales, Centex's mortgage subsidiary entered into agreements pursuant to which it may be required to indemnify the bank for losses incurred by investors in the RMBSs arising out of material errors or omissions in certain information provided by the mortgage subsidiary relating to the loans and loan origination process. The bank has notified us that it has been named defendant in two lawsuits alleging various violations of federal and state securities laws asserting that untrue statements of material fact were included in the registration statements used to market the sale of two RMBS transactions, which included $162 million of loans originated by Centex's mortgage subsidiary. Neither Centex's mortgage subsidiary nor the Company is named as a defendant in these actions. These actions are in their preliminary stage, and we cannot yet quantify Centex's mortgage subsidiary's potential liability as a result of these indemnification obligations. We do not believe, however, that these matters will have a material adverse impact on the results of operations, financial position, or cash flows of the Company. We are aware of six other RMBS transactions with such indemnity provisions that include an aggregate $116 million of loans, however, we are not aware of any current or threatened legal proceedings regarding those transactions.

Income before income taxes

The increased income before income taxes for the three months ended March 31, 2012 as compared to the prior year period was due to higher origination volume, higher revenue per loan, and improved expense leverage.

43

Income Taxes

Our effective tax rate is affected by a number of factors, the most significant of which are the valuation allowance recorded against our deferred tax assets and changes in our unrecognized tax benefits. Due to the effects of these factors, our effective tax rates for the three months ended March 31, 2012 and 2011 are not correlated to the amount of our pretax losses. Income taxes were provided at an effective tax rate of 13.5% for the three months ended March 31, 2012, compared with an effective tax rate of 12.9% for the prior year period. The income tax benefit for the three months ended March 31, 2012 and 2011 resulted primarily from the favorable resolution of certain federal and state income tax matters.

Liquidity and Capital Resources

We finance our land acquisition, development, and construction activities and financial services operations by using internally-generated funds and existing credit arrangements. We routinely monitor current and expected operational requirements and financial market conditions to evaluate accessing other available financing sources, including revolving bank credit and securities offerings. Based on our current financial condition and credit relationships, we believe that our operations and borrowing resources are sufficient to provide for our current and foreseeable capital requirements. However, we continue to evaluate the impact of market conditions on our liquidity and may determine that modifications are appropriate if market conditions deteriorate, if significant growth returns to the homebuilding industry, or if favorable capital market opportunities become available.

At March 31, 2012, we had unrestricted cash and equivalents of $1.2 billion and senior notes of $3.1 billion. We also had restricted cash balances of $89.9 million, the substantial majority of which related to cash serving as collateral under certain letter of credit facilities. Other financing sources include various letter of credit facilities and surety bond arrangements.

We follow a diversified investment approach for our cash and equivalents by maintaining such funds with a diversified portfolio of banks within our group of relationship banks in high quality, highly liquid, short-term investments, generally money market funds and federal government or agency securities. We monitor our investments with each bank and do not believe our cash and equivalents are exposed to any material risk of loss. However, there can be no assurances that losses of principal balance on our cash and equivalents will not occur.

Our ratio of debt to total capitalization was 61.6% at March 31, 2012, and 48.1% net of cash and equivalents, including restricted cash. These debt-to-capital ratios remain above our desired targets, so we are actively pursuing strategies to reduce our leverage through a combination of cash-generating activities, reducing debt, and returning to consistent profitability.

Credit agreements

We maintain an unsecured letter of credit facility expiring in June 2014 that permits the issuance of up to $200.0 million of letters of credit. At March 31, 2012, $148.0 million of letters of credit were outstanding under this facility.

We maintain separate cash-collateralized letter of credit agreements with a number of financial institutions. These agreements provide capacity to issue letters of credit totaling up to $190.0 million, the majority of which is uncommitted. Letters of credit totaling $71.3 million were outstanding under these agreements at March 31, 2012. Under these agreements, we are required to maintain deposits with these financial institutions in amounts approximating the letters of credit outstanding. Such deposits are included in restricted cash.

Pulte Mortgage

Pulte Mortgage provides mortgage financing for the majority of our home closings by using its own funds and funds available pursuant to a repurchase agreement with the Company. Pulte Mortgage uses these resources to finance its lending activities until the mortgage loans are sold to third party investors, which generally occurs within 30 days. At March 31, 2012, we funded $54.5 million of Pulte Mortgage's financing needs via the repurchase agreement with the Company.

Stock repurchase programs

At March 31, 2012, we had remaining authorization to purchase $102.3 million of common stock. There have been no repurchases under authorized stock repurchase programs since 2006.

44

Cash flows

Operating activities

Our net cash provided by operating activities for the three months ended March 31, 2012 was $114.7 million, compared with net cash used in operating activities of $49.6 million for the three months ended March 31, 2011. Generally, the primary drivers of our cash flow from operations are profitability and changes in inventory levels. Our positive cash flow from operations for the three months ended March 31, 2012 was primarily the result of changes in working capital, including a net decrease in inventories of $46.0 million and mortgage loans available-for-sale of $74.1 million. The inventory decrease resulted primarily from a reduction in spec homes in production while the reduction in mortgage loans available-for-sale resulted from our typical seasonal reduction in closings in the first quarter. Our negative cash flow from operations for the three months ended March 31, 2011 was mainly due to the net loss from operations combined with a reduction in accrued and other liabilities.

Investing activities

Net cash provided by investing activities for the three months ended March 31, 2012 was $12.9 million, compared with net cash used by investing activities of $114.0 million for the three months ended March 31, 2011. The positive cash flow from investing activities for the three months ended March 31, 2012 was primarily due to the $11.9 million decrease in restricted cash we are required to maintain related to our letter of credit facilities, which resulted from a reduction in letters of credit outstanding. The negative cash flow from investing activities for the three months ended March 31, 2011 was mainly due to the $109.7 million required to be classified as restricted cash in connection with entering into the cash-collateralized letter of credit facilities.

Financing activities

Net cash provided by financing activities for the three months ended March 31, 2012 totaled $1.1 million. Net cash used in financing activities for the three months ended March 31, 2011 totaled $14.3 million primarily due to the retirement of $13.9 million of senior notes at their scheduled maturity date.

Inflation

We, and the homebuilding industry in general, may be adversely affected during periods of inflation because of higher land and construction costs. Inflation may also increase our financing costs. In addition, higher mortgage interest rates significantly affect the affordability of permanent mortgage financing to prospective homebuyers. While we attempt to pass on to our customers increases in our costs through increased sales prices, current industry conditions have resulted in significant pressure on sales prices in many of our markets. If we are unable to raise sales prices enough to compensate for higher costs, or if mortgage interest rates increase significantly, our revenues, gross margins, and net income would be adversely affected.

Seasonality

We experience variability in our quarterly results from operations due to the seasonal nature of the homebuilding industry. Historically, we have experienced significant increases in revenues and cash flow from operations during the fourth quarter based on the timing of home closings.

Contractual Obligations and Commercial Commitments

There have been no material changes to our contractual obligations from those disclosed in our "Contractual Obligations" contained in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2011.

45

Off-Balance Sheet Arrangements

We use letters of credit and surety bonds to guarantee our performance under various contracts, principally in connection with the development of our projects. The expiration dates of the letter of credit contracts coincide with the expected completion date of the related homebuilding projects. If the obligations related to a project are ongoing, annual extensions of the letters of credit are typically granted on a year-to-year basis. At March 31, 2012, we had outstanding letters of credit of $219.3 million. Surety bonds generally do not have stated expiration dates; rather, we are released from the bonds as the contractual performance is completed. These bonds, which approximated $1.2 billion at March 31, 2012, are typically outstanding over a period of approximately three to five years. Because significant construction and development work has been performed related to the applicable projects but has not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed.

In the ordinary course of business, we enter into land option agreements in order to procure land for the construction of houses in the future. At March 31, 2012, these agreements had an aggregate remaining purchase price of $699.4 million. Pursuant to these land option agreements, we provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. In certain instances, we are required to record the land under option as if we own it. At March 31, 2012, we consolidated certain land option agreements and recorded assets of $26.1 million as land, not owned, under option agreements.

At March 31, 2012, aggregate outstanding debt of unconsolidated joint ventures was $11.0 million, of which our proportionate share of such joint venture debt was $3.2 million. Of our proportionate share of joint venture debt, we provided limited recourse guaranties for $1.2 million at March 31, 2012. See Note 5 to the Consolidated Financial Statements for additional information.

Critical Accounting Policies and Estimates

There have been no significant changes to our critical accounting policies and estimates during the three months ended March 31, 2012 compared with those contained in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2011.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Quantitative disclosure

The following tables set forth, as of March 31, 2012, our rate-sensitive financing obligations, principal cash flows by scheduled maturity, weighted-average interest rates, and estimated fair value ($000’s omitted).

	As of March 31, 2012 for the Years ending December 31,
	2012			2013			2014			2015			2016			Thereafter			Total			Fair Value
Rate-sensitive liabilities:
Fixed interest rate debt:
Senior notes	$	96,393		$	182,221		$	574,590		$	492,491		$	480,000		$	1,300,000		$	3,125,695		$	3,030,286
Average interest rate	5.45		%	5.51		%	5.50		%	5.23		%	6.50		%	6.89		%	6.19		%

Qualitative disclosure

There have been no material changes to the qualitative disclosure found in Item 7A, Quantitative and Qualitative Disclosures about Market Risk, of our Annual Report on Form 10-K for the year ended December 31, 2011.

46

SPECIAL NOTES CONCERNING FORWARD-LOOKING STATEMENTS

As a cautionary note, except for the historical information contained herein, certain matters discussed in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, and Item 7a, Quantitative and Qualitative Disclosures About Market Risk, are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “may,” “can,” “could,” “might,” “will” and similar expressions identify forward-looking statements, including statements related to expected operating and performing results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future.

Such risks, uncertainties and other factors include, among other things: interest rate changes and the availability of mortgage financing; continued volatility in the debt and equity markets; competition within the industries in which PulteGroup operates; the availability and cost of land and other raw materials used by PulteGroup in its homebuilding operations; the impact of any changes to our strategy in responding to continuing adverse conditions in the industry, including any changes regarding our land positions; the availability and cost of insurance covering risks associated with PulteGroup's businesses; shortages and the cost of labor; weather related slowdowns; slow growth initiatives and/or local building moratoria; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans; the interpretation of or changes to tax, labor and environmental laws; economic changes nationally or in PulteGroup's local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; legal or regulatory proceedings or claims; required accounting changes; terrorist acts and other acts of war; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. See the Company's Annual Report on Form 10-K for the year ended December 31, 2011 and other public filings with the Securities and Exchange Commission for a further discussion of these and other risks and uncertainties applicable to PulteGroup's business. PulteGroup undertakes no duty to update any forward-looking statement, whether as a result of new information, future events or changes in PulteGroup's expectations.

47

Item 4. Controls and Procedures

Disclosure Controls and Procedures

Management, including our Chairman, President and Chief Executive Officer and Executive Vice President and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2012. Based upon, and as of the date of, that evaluation, our Chairman, President and Chief Executive Officer and Executive Vice President and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of March 31, 2012.

Management is responsible for establishing and maintaining effective internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). There was no change in our internal control over financial reporting during the quarter ended March 31, 2012 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

	(a) Total number of shares purchased (2)	(b) Average price paid per share (2)		(c) Total number of shares purchased as part of publicly announced plans or programs	(d) Approximate dollar value of shares that may yet be purchased under the plans or programs ($000’s omitted)
January 1, 2012 to January 31, 2012	—	—		—	$	102,342	(1)
February 1, 2012 to February 29, 2012	77,621	$	9.07	—	$	102,342	(1)
March 1, 2012 to March 31, 2012	15,739	$	8.94	—	$	102,342	(1)
Total	93,360	$	9.05	—

(1) Pursuant to the two $100 million stock repurchase programs authorized and announced by our Board of Directors in October 2002 and October 2005 and the $200 million stock repurchase authorized and announced in February 2006 (for a total stock repurchase authorization of $400 million), the Company has repurchased a total of 9,688,900 shares for a total of $297.7 million. There are no expiration dates for the programs.

(2) During the first quarter of 2012, a total of 93,360 shares were surrendered by employees for payment of minimum tax obligations upon the vesting of restricted stock. Such shares were not repurchased as part of our publicly-announced stock repurchase programs.

48

Item 6. Exhibits

Exhibit Number and Description

(3)	(a)	Restated Articles of Incorporation, of PulteGroup, Inc. (Incorporated by reference to Exhibit 3.1 of our Current Report on Form 8-K, filed with the SEC on August 18, 2009)
	(b)	Certificate of Amendment to the Articles of Incorporation, dated March 18, 2010 (Incorporated by reference to Exhibit 3(b) of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2010)
	(c)	Certificate of Amendment to the Articles of Incorporation, dated May 21, 2010 (Incorporated by reference to Exhibit 3(c) of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2010)
	(d)	By-laws, as amended, of PulteGroup, Inc. (Incorporated by reference to Exhibit 3.1 of our Current Report on Form 8-K, filed with the SEC on April 8, 2009)
	(e)	Certificate of Designation of Series A Junior Participating Preferred Shares, dated August 6, 2009 (Incorporated by reference to Exhibit 3(b) of our Registration Statement on Form 8-A, filed with the SEC on August 18, 2009)
(4)	(a)	Any instrument with respect to long-term debt, where the securities authorized thereunder do not exceed 10% of the total assets of PulteGroup, Inc. and its subsidiaries, has not been filed. The Company agrees to furnish a copy of such instruments to the SEC upon request.
	(b)	Amended and Restated Section 382 Rights Agreement, dated as of March 18, 2010, between PulteGroup, Inc. and Computershare Trust Company, N.A., as rights agent, which includes the Form of Rights Certificate as Exhibit B thereto (Incorporated by reference to Exhibit 4 of PulteGroup, Inc.’s Registration Statement on Form 8-A/A filed with the SEC on March 23, 2010)
(10)	(a)	Form of Performance Award Agreement under PulteGroup, Inc. 2008 Senior Management Incentive Plan (Filed herewith)
(31)	(a)	Rule 13a-14(a) Certification by Richard J. Dugas, Jr., Chairman, President, and Chief Executive Officer (Filed herewith)
	(b)	Rule 13a-14(a) Certification by Robert T. O'Shaughnessy, Executive Vice President and Chief Financial Officer (Filed herewith)
(32)		Certification Pursuant to 18 United States Code § 1350 and Rule 13a-14(b) of the Securities Exchange Act of 1934 (Filed herewith)
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

49

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PULTEGROUP, INC.
/s/ Robert T. O'Shaughnessy
Robert T. O'Shaughnessy
Executive Vice President and Chief Financial Officer
(Principal Financial Officer and duly authorized officer)
Date:	April 26, 2012

50

EX-10.A

PULTEGROUP, INC.

Grant Acceptance Agreement

Pursuant to the PulteGroup, Inc. 2008 Senior Management Incentive Plan (the “Plan”), ________________ (“the Participant”) has been granted the Performance Award described below. Certain terms and conditions of the Performance Award are set forth immediately below in this Grant Acceptance Agreement. Other terms and conditions are set forth in the Performance Award Agreement which is appended to this Grant Acceptance Agreement. The Grant Acceptance Agreement and the Performance Award Agreement are together the “Agreement” which is made and entered into between PulteGroup, Inc., a Michigan corporation (“the Company”), and the Participant as of the Grant Date. Capitalized terms not otherwise defined in this Grant Acceptance Agreement are defined in the Plan or the Performance Award Agreement.

Grant Date:	February 8, 2012
Individual Award Opportunity (“Target Award”):	$[________________]
Performance Period:	January 1, 2012
Performance Measures:	ROIC Improvement and Relative TSR Performance (see tables and description below).
Payout Range:	0-200%
Vesting Date:	December 31, 2014

Subject to the terms of the Agreement, the Performance Award (the “Award”) shall be earned as follows:

ROIC Improvement		Payout as a % of Target (1)	2012 - 2014 Performance Goal
ROIC Improvement is defined as Average ROIC minus [ ]%.	Minimum	50%	[ ]%
	Target	100%	[ ]%
	Maximum	200%	[ ]%

(1) If performance is between the minimum and maximum levels set forth above, then the payout as a percentage of target shall be interpolated appropriately. Payout as a % of Target shall be subject to a +/- 20% modifier relating to the Company's TSR Performance against the TSR Comparator Group (“Relative TSR Performance”) as follows:

1

Relative TSR Performance	TSR Modifier
> 90th percentile	1.20x
>75th - 90th percentile	1.13x
>60th - 75th percentile	1.07x
>45th - 60th percentile	1.00x
>30th - 45th percentile	0.93x
>20th - 30th percentile	0.87x
<= 20th percentile	0.80x

The following definitions shall apply for purposes of determining the amounts payable pursuant to this Award:

“Average Invested Capital” is defined as consolidated shareholders' equity plus consolidated debt as determined in accordance with U.S. generally accepted accounting principles for the year, each as adjusted to exclude consolidated cash, income tax asset and liability accounts, intangible assets, Financial Services debt and changes in U.S. generally accepted accounting principles.

“Average ROIC” is defined as the sum of ROIC for 2012, 2013 and 2014 divided by three.

“Average Stock Price” means the average of the closing transaction prices of a share of common stock of a company, as reported on the principal national stock exchange on which such common stock is traded, for the 60 trading days immediately preceding the date for which the Average Stock Price is being determined.

“ROIC” means, for any year, (i) consolidated earnings before interest, taxes, depreciation and amortization, each as determined in accordance with U.S. generally accepted accounting principles for the year, adjusted to exclude the expense related to performance awards granted after December 1, 2011, mortgage repurchase reserve adjustments related to mortgage loan originations prior to January 1, 2012, gain or loss on debt retirements, land-related charges related to land acquired prior to January 1, 2012, land sale gains related to land acquired prior to January 1, 2012, intangible impairments and changes in U.S. generally accepted accounting principles, divided by (ii) Average Invested Capital.

“TSR Comparator Group” means D.R. Horton, Inc., KB Home, Lennar Corporation, NVR, Inc., The Ryland Group, Inc. and Toll Brothers, Inc.; provided, however, that if a member of the TSR Comparator Group ceases to be publicly traded during the Performance Period, such member shall be excluded for purposes of determining the TSR Performance.

“TSR Performance” means a company's cumulative total shareholder return as measured by dividing (A) the sum of (i) the cumulative amount of dividends during the Performance Period, assuming dividend reinvestment, and (ii) the increase or decrease in the Average Stock Price from the first day of the Performance Period to the last day of the Performance Period, by (B) the Average Stock Price determined as of the first day of the Performance Period.

2

Except as set forth below, the Award shall be settled in the Company's common shares, $.01 par value (the “Shares”). The number of Shares to be delivered under the terms of the Award shall be determined by dividing the amount payable under the Award by the Fair Market Value of a Share determined at December 31, 2014 (or in the event of the Participant's termination of employment due to death or Disability pursuant to Section 3.2 of the Agreement, as of the date of termination of employment) (the “Determination Date”).

Notwithstanding the foregoing, if (i) the Fair Market Value of a Share is less than $5.00 on the Determination Date or (ii) the Company does not have a sufficient number of available Shares under the Company's stock incentive plan in effect at the time of the settlement of the Award, the Award shall be settled by a combination of Shares and cash. If the Fair Market Value of a Share is less than $5.00 on the Determination Date , the number of Shares to be delivered shall equal the amount payable under the Award divided by (ii) $5.00, and the difference between the amount payable under the Award and the total aggregate Fair Market Value of such delivered Shares (determined as of the Determination Date) shall be paid in cash. If the Company does not have a sufficient number of available Shares under the Company's stock incentive plan in effect at the time of the settlement of the Award, the number of Shares to be delivered shall be determined by the Committee based on a pro rata allocation of the available shares, if any, among award recipients, and the difference between the amount payable under the Award and the total aggregate Fair Market Value of such delivered Shares (determined as of the Determination Date) shall be paid in cash. Notwithstanding the attainment of the Performance Measures with respect to the Award or anything herein or in the Agreement to the contrary, in all cases, the Committee shall have the sole and absolute discretion to reduce the amount of any payment with respect to any portion of the Award that would otherwise be made to the Participant or to decide that no payment shall be made.

The Participant acknowledges receipt of copies of the Performance Award Agreement and the Plan (which are incorporated by reference and made a part hereof) and this Grant Acceptance Agreement and agrees to abide by all of the terms and conditions of the Performance Award Agreement and the Plan.

3

In witness whereof, the parties have executed the Agreement as of __________ ___, 2012.

		PULTEGROUP, INC., a Michigan corporation
	By:
		Name:
		Title:
Agreed and Accepted:
Participant

4

PULTEGROUP, INC.

Performance Award Agreement

PulteGroup, Inc., a Michigan corporation (the “Company”), hereby grants to _________________________ (the “Participant”) as of February 8, 2012 (the “Grant Date”) a performance award (the “Award') representing the right to receive $[_________] payable in the Company's common shares, $.01 par value (the “Shares”), subject to adjustment as provided herein and in the PulteGroup, Inc. 2008 Senior Management Incentive Plan (the “Plan”). The Award is subject to the restrictions, terms and conditions set forth below, the Grant Acceptance Agreement and in the Plan. Capitalized terms not defined herein shall have the meanings specified in the Plan.

1.Award Subject to Acceptance of Agreement. The Award shall be null and void unless the Participant shall accept this Agreement by executing the Grant Acceptance Agreement and returning it to the Company at such time as shall be satisfactory to the Company.

2.Rights as a Shareholder. The Participant shall not be entitled to any privileges of ownership with respect to the Shares subject to the Award unless and until, and only to the extent, the Award is settled in Shares pursuant to the Grant Acceptance Agreement attached hereto and the Participant becomes a shareholder of record with respect to such Shares.

3.Vesting and Forfeiture.

3.1.    Service Vesting Requirement. Subject to the remainder of this Section 3, if the Participant remains in continuous employment with the Company through the date set forth in the Grant Acceptance Agreement (the “Vesting Date”), the Participant shall be entitled to receive an amount equal to the amount set forth in the Grant Acceptance Agreement based on satisfaction of the performance measures. Except as otherwise provided herein, if the Participant's employment by the Company terminates prior to the Vesting Date, the Participant shall forfeit all rights with respect to the Award and the Award shall be cancelled by the Company. The Award shall be paid as soon as practicable following the Vesting Date but no later than the March 15^th occurring immediately after the Vesting Date.

3.2.    Termination by Reason of Death or Disability.If the Participant's employment with the Company terminates by reason of death or Disability, the Participant or the Participant's Beneficiary, as the case may be, shall be entitled to a prorated Award. Such prorated Award shall be equal to the Target Award set forth in the Grant Acceptance Agreement multiplied by a fraction, the numerator of which shall equal the number of days such Participant was employed with the Company during the Performance Period and the denominator of which shall equal the number of days in the Performance Period. Notwithstanding anything herein to the contrary, a prorated Award payable pursuant to this Section 3.2, shall be paid to the Participant or Participant's Beneficiary, as the case may be, no later than the March 15^th occurring immediately after the year in which the Participant's employment terminates.

3.3.    Termination by the Company prior to a Change in Control other than for Cause, death or Disability. If the Participant's employment with the Company is terminated by the Company prior to a Change in Control other than for Cause, death or Disability, the Performance Period shall continue through the last day thereof and the Participant shall be entitled to a prorated Award. Such prorated Award shall be equal to the value of the Award at the end of the Performance Period based on the actual performance during the Performance Period multiplied by a fraction, the numerator of which shall equal the number of days such Participant was employed with the Company during the Performance Period and the denominator of which shall equal the number of days in the Performance Period. Notwithstanding anything herein to the contrary, a prorated Award payable pursuant to this Section 3.3

5

shall be paid to the Participant as soon as practicable following the Vesting Date but no later than the March 15^th occurring immediately after the Vesting Date.

3.4.    Termination by Reason of Voluntary Termination by Participant or Termination by the Company for Cause. If the Participant's employment with the Company is terminated voluntarily by Participant for any reason or is terminated by the Company for Cause, the Participant's Award that is unvested as of the date of termination shall be immediately forfeited.

3.5.    Change in Control.

(a)In the event a Change in Control occurs during the Performance Period and the Participant remains employed with the Company through the Vesting Date, the amount of the Award payable to the Participant shall equal the greater of (A) the Target Award and (B) the Award payable based on actual performance during the Performance Period; provided, however, that if the Committee determines that the actual performance of the Company cannot be calculated by the Committee as a result of the Change in Control transaction, the amount of the Award payable to the Participant shall equal the Target Award. Notwithstanding anything herein to the contrary, the Award payable pursuant to this Section 3.5(a) shall be paid as soon as practicable following the Vesting Date but no later than the March 15^th occurring immediately after the Vesting Date.

(b)In the event a Change in Control occurs during the Performance Period and the Participant's employment is terminated by the Company without Cause or by the Participant for Good Reason following such Change in Control, the Participant shall be entitled to an Award equal to the Target Award set forth in the Grant Acceptance Agreement. Notwithstanding anything herein to the contrary, the Award payable pursuant to this Section 3.5(b), shall be paid to the Participant no later than the March 15th occurring immediately after the year in which the Participant's employment terminates.

3.6.    Definitions

(a)As used herein, “Cause” shall mean a determination by the Company that the Participant has (i) willfully and continuously failed to substantially perform the duties assigned by the Company or a Subsidiary with which the Participant is employed (other than a failure resulting from the Participant's Disability), (ii) willfully engaged in conduct which is demonstrably injurious to the Company or any Subsidiary, monetarily or otherwise, including conduct that, in the reasonable judgment of the Company, does not conform to the standard of the Company's executives or employees, or (iii) engaged in any act of dishonesty, the commission of a felony or a significant violation of any statutory or common law duty of loyalty to the Company or any Subsidiary.

(b)“Change in Control” means:

(i)the acquisition by any individual, entity or group (a “Person”), including any “person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act, of beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act, of 40% or more of either (A) the then outstanding shares of common stock of the Company (the “Outstanding Common Stock”) or (B) the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding Voting Securities”); excluding, however, the following: (1) any acquisition directly from the Company (excluding any acquisition resulting from the exercise of an exercise, conversion or exchange privilege unless the security being so exercised, converted or exchanged was acquired directly from the Company), (2) any acquisition by the Company, (3) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or any

6

corporation controlled by the Company, (4) any acquisition by any corporation pursuant to a transaction which complies with clauses (A), (B) and (C) of subparagraph (iii) of this definition or (5) any acquisition by any one or more of William J. Pulte, his spouse, any trust or other entity established for the benefit of either or both of such persons, or any charitable organization established by either or both of such persons (“Exempt Persons”); provided further, that for purposes of clause (2), if any Person (other than the Company, any one or more Exempt Persons or any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company) shall become the beneficial owner of 40% or more of the Outstanding Common Stock or 40% or more of the Outstanding Voting Securities by reason of an acquisition by the Company, and such Person shall, after such acquisition by the Company, become the beneficial owner of any additional shares of the Outstanding Common Stock or any additional Outstanding Voting Securities and such beneficial ownership is publicly announced, such additional beneficial ownership shall constitute a Change in Control;

(ii)individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of such Board; provided that any individual who becomes a director of the Company subsequent to the date hereof whose election, or nomination for election by the Company's shareholders, was approved by the vote of at least a majority of the directors then comprising the Incumbent Board shall be deemed a member of the Incumbent Board; and provided further, that any individual who was initially elected as a director of the Company as a result of an actual or threatened solicitation by a Person other than the Board for the purpose of opposing a solicitation by any other Person with respect to the election or removal of directors, or any other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board shall not be deemed a member of the Incumbent Board;

(iii)the consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Corporate Transaction”); excluding, however, a Corporate Transaction pursuant to which (A) all or substantially all of the individuals or entities who are the beneficial owners, respectively, of the Outstanding Common Stock and the Outstanding Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 60% of, respectively, the outstanding shares of common stock, and the combined voting power of the outstanding securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company's assets either directly or indirectly) in substantially the same proportions relative to each other as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Common Stock and the Outstanding Voting Securities, as the case may be, (B) no Person (other than: the Company; any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company; the corporation resulting from such Corporate Transaction; and any Person which beneficially owned, immediately prior to such Corporate Transaction, directly or indirectly, 40% or more of the Outstanding Common Stock or the Outstanding Voting Securities, as the case may be) will beneficially own, directly or indirectly, 40% or more of, respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction or the combined voting power of the outstanding securities of such corporation entitled to vote generally in the election of directors and (C) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction; or

(iv)the consummation of a plan of complete liquidation or dissolution of the Company.

7

(c)As used herein, “Disability” shall mean a sickness or disability extending for more than three (3) consecutive months as a result of which the Participant is unable to perform his or her duties for the Company or an affiliate, as applicable, in the required and customary manner and that will continue for not less than an additional three (3) months, as determined by the Company in its sole discretion. In the event of any dispute regarding the existence of the Participant's Disability hereunder, the matter shall be resolved by the determination of a physician selected by the Committee and reasonably acceptable to the Participant. The Participant shall submit to appropriate medical examinations for purposes of such determination.

(d)“Exchange Act” means the Securities Exchange Act of 1934, as then in effect, or any successor federal statute of substantially similar effect.

(e)As used herein, “Fair Market Value” shall mean the average of the high and low transaction prices of a Share as reported on the New York Stock Exchange on the date as of which such value is being determined or, if the Shares are not listed on the New York Stock Exchange, the average of the high and low transaction prices of a Share on the principal national stock exchange on which the Shares are traded on the date as of which such value is being determined, or if there shall be no reported transaction for such date, on the next preceding date for which a transaction was reported; provided, however, that if Fair Market Value for any date cannot be so determined, Fair Market Value shall be determined by the Committee by whatever means or method as the Committee, in the good faith exercise of its discretion, shall at such time deem appropriate.

(f)As used herein, “Good Reason” shall mean the occurrence of any of the following events without the Participant's prior written consent: (i) a material diminution in the Participant's annual base salary; (ii) a material diminution in the Participant's authority, duties or responsibilities; or (iii) a material change in the geographic location at which the Participant must perform services; providedthat, the Participant must notify the Company of his or her intention to terminate his or her employment by written notice to the Company within ninety (90) days of the initial existence of such event and the Company shall have thirty (30) days to cure such event after receipt of such notice.    If the Company shall fail to cure such event, the Participant may terminate his or her employment for Good Reason within thirty (30) days following the expiration of the Company's cure period.

3.7.    Committee Discretion. Notwithstanding the attainment of the Performance Measures with respect to the Award or anything herein to the contrary, in all cases, the Committee shall have the sole and absolute discretion to reduce the amount of any payment with respect to any portion of the Award that would otherwise be made to any Participant or to decide that no payment shall be made.

4.Settlement of Award. The Company shall issue or transfer to the Participant the number of Shares and make any lump sum cash payment, if any, determined pursuant to the Grant Acceptance Agreement and this Agreement. Notwithstanding any other provision in the Agreement to the contrary, the Company shall not issue or transfer any Shares or make any lump sum cash payment subject to the Award, unless and until the Committee has certified that the applicable Performance Measures have been satisfied, which certification shall occur within 60 days following the last day of the applicable Performance Period; except with respect to prorated Awards payable pursuant to Section 3.2 or Target Awards payable pursuant to Section 3.5(b). The Company may effect such transfer by an appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company, and in either case by issuing such Shares in the Participant's name or in such other name as is acceptable to the Company and designated in writing by the Participant. The Company shall pay all original issue or transfer taxes and all fees and expenses incident to such delivery, except as otherwise provided in Section 5.3. Any fraction of a Share shall be disregarded and the Company shall pay to the Participant at the same time that the Shares are distributed to the Holder an amount in cash determined by multiplying (i) the

8

fraction of such Share by (ii) the Fair Market Value of a Share on the Vesting Date (or the date of a Participant's termination of employment due to death or Disability, as applicable).

5.Additional Terms and Conditions of Award.

5.1.    Nontransferability of Award. The Award and any rights thereunder shall not be transferable other than by will or the laws of descent and distribution or pursuant to any Beneficiary designation procedures as may approved by the Committee for such purpose. Except as permitted by the preceding sentence, the Award shall not be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process. Upon any attempt by the Participant to so sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of the Award, the Award and all rights thereunder shall immediately become null and void.

5.2.    Investment Representation. The Participant hereby represents and covenants that (a) any Shares acquired upon the settlement of the Award will be acquired for investment and not with a view to the distribution thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), unless such acquisition has been registered under the Securities Act and any applicable state securities law; (b) any subsequent sale of any such Shares shall be made either pursuant to an effective registration statement under the Securities Act and any applicable state securities laws, or pursuant to an exemption from registration under the Securities Act and such state securities laws; and (c) if requested by the Company, the Participant shall submit a written statement, in form satisfactory to the Company, to the effect that such representation (x) is true and correct as of the date of acquisition of any Shares hereunder or (y) is true and correct as of the date of any sale of any such Shares, as applicable. As a further condition precedent to the delivery to the Participant of any Shares subject to the Award, the Participant shall comply with all regulations and requirements of any regulatory authority having control of or supervision over the issuance of the Shares and, in connection therewith, shall execute any documents which the Board or the Committee shall in its sole discretion deem necessary or advisable.

5.3.    Withholding Taxes.

(a)As a condition precedent to the delivery to the Participant of any Shares subject to the Award or the payment of any cash amount pursuant to the terms of the Award, the Participant shall, upon request by the Company, pay to the Company such amount of cash as the Company may be required, under all applicable federal, state, local or other laws or regulations, to withhold and pay over as income or other withholding taxes (the “Required Tax Payments”) with respect to the Award. If the Participant shall fail to advance the Required Tax Payments after request by the Company, the Company may, in its discretion, deduct any Required Tax Payments from any amount then or thereafter payable by the Company to the Participant or withhold Shares or any portion of the cash payment.

(b)The Participant may elect to satisfy his or her obligation to advance the Required Tax Payments by any of the following means: (1) a cash payment to the Company pursuant to Section 5.3(a), (2) delivery to the Company (either actual delivery or by attestation procedures established by the Company) of Shares having a Fair Market Value, determined as of the date the obligation to withhold or pay taxes first arises in connection with the Award (the “Tax Date”), equal to the Required Tax Payments, (3) authorizing the Company to withhold from the Shares otherwise to be delivered to the Participant pursuant to the Award, a number of whole Shares having a Fair Market Value, determined as of the Tax Date, equal to the Required Tax Payments, or (4) any combination of (1), (2) and (3). Shares to be delivered or withheld may not have a Fair Market Value in excess of the minimum amount of the Required Tax Payments. Any fraction of a Share which would be required to satisfy such an obligation shall be disregarded and the remaining amount due shall be paid in cash by the Participant. No Shares and

9

no portion of any cash payment shall be delivered until the Required Tax Payments have been satisfied in full.

5.4.    Compliance with Applicable Law. The Award is subject to the condition that if the listing, registration or qualification of the Shares subject to the Award upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is necessary or desirable as a condition of, or in connection with, the vesting or delivery of such Shares, the Shares subject to the Award shall not vest or be delivered, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or obtained, free of any conditions not acceptable to the Company. The Company agrees to use reasonable efforts to effect or obtain any such listing, registration, qualification, consent or approval.

5.5.    Award Confers No Rights to Continued Employment. In no event shall the granting of the Award or its acceptance by the Participant give or be deemed to give the Participant any right to continued employment by the Company or a Subsidiary.

5.6.    Decisions of the Board or Committee. The Board or the Committee shall have the right to resolve all questions which may arise in connection with the Award. Any interpretation, determination or other action made or taken by the Committee regarding the Program or this Agreement shall be final, binding and conclusive.

5.7.    Agreement Subject to the Plan. This Agreement is subject to the provisions of the Plan and shall be interpreted in accordance therewith. The Participant hereby acknowledges receipt of a copy of the Plan.

6.Miscellaneous Provisions.

6.1.    Employment by Subsidiary. References in the Agreement to employment by the Company shall also mean employment by a Subsidiary.

6.2.    Successors. This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and any person or persons who shall, upon the death of the Participant, acquire any rights hereunder in accordance with this Agreement or the Program.

6.3.    Notices. All notices, requests or other communications provided for in this Agreement shall be made, if to the Company, to PulteGroup, Inc., Attention General Counsel, 100 Bloomfield Hills Parkway, Suite 300, Bloomfield Hills, Michigan 48304, and if to the Participant, to the last known address contained in the records of the Company. All notices, requests or other communications provided for in this Agreement shall be made in writing either (a) by personal delivery to the party entitled thereto, (b) by electronic mail or facsimile with confirmation of receipt, (c) by mailing in the United States mails to the last known address of the party entitled thereto or (d) by express courier service. The notice, request or other communication shall be deemed to be received upon personal delivery, upon confirmation of receipt of electronic mail or facsimile transmission, or upon receipt by the party entitled thereto if by United States mail or express courier service; provided, however, that if a notice, request or other communication is not received during regular business hours, it shall be deemed to be received on the next succeeding business day of the Company.

6.4.    Governing Law. This Agreement, the Award and all determinations made and actions taken pursuant hereto and thereto, to the extent not otherwise governed by the laws of the United States, shall be governed by the laws of the State of Michigan and construed in accordance therewith without giving effect to conflicts of laws principles.

6.5.    Section 409A. The Agreement is intended to be exempt from the requirements of

10

Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and shall be interpreted and construed consistently with such intent; provided, however, that in no event shall the Company or any of its directors, officers, employees or advisors be responsible for any such additional tax, interest or related tax penalties that may be imposed under Section 409A of the Code.

6.6.    Jurisdiction; Service of Process. Any action or proceeding seeking to enforce any provision of, or based on any right arising out of, the Agreement shall be brought against the parties, as the sole and exclusive forum, in the courts of the State of Michigan in the County of Oakland, or in the United States District Court for the Eastern District of Michigan, Southern Division, and each party consents to the jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection to venue laid therein.

6.7.    Statute of Limitations. Any action, claim or lawsuit relating to this Agreement must be filed no more than six (6) months after the date of the employment action that is the subject of the action, claim or lawsuit. The Participant voluntarily waives any statute of limitations to the contrary.

11

EX-31.A

EXHIBIT 31(a)

CHIEF EXECUTIVE OFFICER'S CERTIFICATION

I, Richard J. Dugas, Jr., certify that:

1. I have reviewed this annual report on Form 10-Q of PulteGroup, Inc.:

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	April 26, 2012	/s/ Richard J. Dugas, Jr.
		Richard J. Dugas, Jr.
		Chairman, President, and Chief Executive Officer

EX-31.B

EXHIBIT 31(b)

CHIEF FINANCIAL OFFICER'S CERTIFICATION

I, Robert T. O'Shaughnessy, certify that:

1. I have reviewed this annual report on Form 10-Q of PulteGroup, Inc.:

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	April 26, 2012	/s/ Robert T. O'Shaughnessy
		Robert T. O'Shaughnessy
		Executive Vice President and Chief Financial Officer

EX-32

EXHIBIT 32

Certification

Pursuant to 18 United States Code § 1350 and

Rule 13a-14(b) of the Securities Exchange Act of 1934

In connection with the Annual Report of PulteGroup, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies that to his knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: April 26, 2012

/s/ Richard J. Dugas, Jr.

Richard J. Dugas, Jr.

Chairman, President, and Chief Executive Officer

/s/ Robert T. O'Shaughnessy

Robert T. O'Shaughnessy

Executive Vice President and

Chief Financial Officer

XML

Inventory And Land Held For Sale (Major Components Of Inventory) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Inventory Disclosure [Abstract]
Homes under construction	$ 1,182,038	$ 1,210,717
Land under development	2,674,484	2,610,501
Land held for future development	727,894	815,250
House and land inventory	$ 4,584,416	$ 4,636,468

XML

Debt (Summary Of Company's Senior Notes) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012		Dec. 31, 2011
Debt Instrument
Senior note carrying value	$ 3,090,946	[1]	$ 3,088,344	[1]
Unsecured Senior Notes 8.125% Due February 2011 [Member]
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage	8.125%		8.125%
Unsecured Senior Notes 5.45% Due August 2012 [Member]
Debt Instrument
Senior note carrying value	96,634	[2]	96,795	[2]
Debt Instrument, Interest Rate, Stated Percentage	5.45%		5.45%
Unsecured Senior Notes 6.25% Due February 2013 [Member]
Debt Instrument
Senior note carrying value	62,692	[2]	62,677	[2]
Debt Instrument, Interest Rate, Stated Percentage	6.25%		6.25%
Unsecured Senior Notes 5.125% Due October 2013 [Member]
Debt Instrument
Senior note carrying value	117,522	[2]	117,197	[2]
Debt Instrument, Interest Rate, Stated Percentage	5.125%		5.125%
Unsecured Senior Notes 5.25% Due January 2014 [Member]
Debt Instrument
Senior note carrying value	255,887	[2]	255,882	[2]
Debt Instrument, Interest Rate, Stated Percentage	5.25%		5.25%
Unsecured Senior Notes 5.70% Due May 2014 [Member]
Debt Instrument
Senior note carrying value	312,613	[2]	311,900	[2]
Debt Instrument, Interest Rate, Stated Percentage	5.70%		5.70%
Unsecured Senior Notes 5.20% Due February 2015 [Member]
Debt Instrument
Senior note carrying value	207,916	[2]	207,906	[2]
Debt Instrument, Interest Rate, Stated Percentage	5.20%		5.20%
Unsecured Senior Notes 5.25% Due June 2015 [Member]
Debt Instrument
Senior note carrying value	271,557	[2]	270,551	[2]
Debt Instrument, Interest Rate, Stated Percentage	5.25%		5.25%
Unsecured Senior Notes 6.50% Due May 2016 [Member]
Debt Instrument
Senior note carrying value	469,774	[2]	469,147	[2]
Debt Instrument, Interest Rate, Stated Percentage	6.50%		6.50%
Unsecured Senior Notes 7.625% Due October 2017 [Member]
Debt Instrument
Senior note carrying value	149,400	[3]	149,373	[3]
Debt Instrument, Interest Rate, Stated Percentage	7.625%		7.625%
Unsecured Senior Notes 7.875% Due June 2032 [Member]
Debt Instrument
Senior note carrying value	299,119	[2]	299,108	[2]
Debt Instrument, Interest Rate, Stated Percentage	7.875%		7.875%
Unsecured Senior Notes 6.375% Due May 2033 [Member]
Debt Instrument
Senior note carrying value	398,436	[2]	398,418	[2]
Debt Instrument, Interest Rate, Stated Percentage	6.375%		6.375%
Unsecured Senior Notes 6.00% Due February 2035 [Member]
Debt Instrument
Senior note carrying value	299,396	[2]	299,390	[2]
Debt Instrument, Interest Rate, Stated Percentage	6.00%		6.00%
Unsecured Senior Notes 7.375% Due June 2046 [Member]
Debt Instrument
Senior note carrying value	$ 150,000	[2]	$ 150,000	[2]
Debt Instrument, Interest Rate, Stated Percentage	7.375%		7.375%

[1] The recorded carrying value reflects the impact of various discounts and premiums that are amortized to interest cost over the respective terms of the senior notes.

[2] Redeemable prior to maturity, guaranteed on a senior basis by certain wholly-owned subsidiaries

[3] Not redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries

XML

Investments In Unconsolidated Entities (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Schedule of Equity Method Investments [Line Items]
Equity in (earnings) loss of unconsolidated entities	$ (1,996,000)	$ (1,109,000)
Capital contributions made to unconsolidated entities	49,000	1,968,000
Capital and earnings distributions received from unconsolidated entities	$ 3,500,000	$ 1,400,000

XML

Commitments And Contingencies (Narrative) (Details) (USD $)	3 Months Ended		24 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2007	Dec. 31, 2011	Dec. 31, 2010
Commitments and Contingencies Disclosure [Abstract]
Total Mortgage Loans Originated			$ 39,500,000,000
Percentage of loan origination repurchase requests in which Company is able to cure or refute the claim	60.00%
Actual Loss Severities Percentage on Mortgage Repurchase Requests	50.00%
Loss Contingencies [Line Items]
Accrued liabilities for outstanding community development district obligations	37,400,000			38,400,000
Aggregate Principal Balance of Community Development District Obligations Repurchased	0	27,500,000
Discount on repurchases of community development district obligations		5,300,000
Letters of Credit Outstanding, Amount	219,300,000			235,900,000
Surety Bonds Outstanding	1,200,000,000			1,200,000,000
Maximum product warranty in years	10
Self-insurance liabilities	740,024,000	774,752,000		741,383,000	785,562,000
Incurred but not reported percentage of liability reserves	78.00%	78.00%
Residential mortgage backed securities known [Member]
Loss Contingencies [Line Items]
Residential mortgage-backed securities principal sold in previous period	162,000,000
Residential mortgage backed securities other [Member]
Loss Contingencies [Line Items]
Residential mortgage-backed securities principal sold in previous period	$ 116,000,000

XML

Segment Information (Land-Related Charges By Segment) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Segment Reporting Information
Land and community valuation adjustments	$ 4,514		$ 103
Net realizable value adjustments - land held for sale	643		0
Write-off of deposits and pre-acquisition costs	739		623
Total land-related charges	5,896		726
Northeast [Member]
Segment Reporting Information
Land and community valuation adjustments	0		0
Net realizable value adjustments - land held for sale	0		0
Write-off of deposits and pre-acquisition costs	51		263
Southeast [Member]
Segment Reporting Information
Land and community valuation adjustments	0		41
Net realizable value adjustments - land held for sale	285		0
Write-off of deposits and pre-acquisition costs	555		205
Florida [Member]
Segment Reporting Information
Land and community valuation adjustments	0		0
Net realizable value adjustments - land held for sale	38		0
Write-off of deposits and pre-acquisition costs	11		0
Texas [Member]
Segment Reporting Information
Land and community valuation adjustments	0		0
Net realizable value adjustments - land held for sale	0		0
Write-off of deposits and pre-acquisition costs	25		13
North [Member]
Segment Reporting Information
Land and community valuation adjustments	1,890		0
Net realizable value adjustments - land held for sale	(119)		0
Write-off of deposits and pre-acquisition costs	97		62
Southwest [Member]
Segment Reporting Information
Land and community valuation adjustments	1,810		0
Net realizable value adjustments - land held for sale	439		0
Write-off of deposits and pre-acquisition costs	0		80
Other Homebuilding [Member]
Segment Reporting Information
Land and community valuation adjustments	$ 814	[1]	$ 62	[1]

[1] Primarily write-offs of capitalized interest related to land and community valuation adjustments.

XML

Basis Of Presentation And Significant Accounting Policies (Notes Receivable And Related Allowance For Credit Losses) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Notes Receivable [Line Items]
Notes receivable, gross	$ 78,579	$ 78,834
Allowance for credit losses	(44,091)	(41,647)
Notes receivable, net	$ 34,488	$ 37,187

XML

Commitments And Contingencies (Changes To Warranty Liability) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Commitments and Contingencies Disclosure [Abstract]
Warranty liabilities, beginning of period	$ 68,025	$ 80,195
Warranty reserves provided	7,851	9,089
Payments	(11,521)	(14,007)
Other adjustments	65	(623)
Warranty liabilities, end of period	$ 64,420	$ 74,654

XML

Segment Information (Tables)

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Operating Data By Reporting Segment

	Operating Data by Segment ($000’s omitted)
	Three Months Ended
	March 31,
	2012			2011
Revenues:
Northeast	$	140,334		$	126,311
Southeast	133,408			142,555
Florida	123,998			116,774
Texas	130,191			131,156
North	186,156			134,139
Southwest	138,097			132,832
	852,184			783,767
Financial Services	28,852			21,435
Consolidated revenues	$	881,036		$	805,202
Income (loss) before income taxes:
Northeast	$	6,496		$	(495	)
Southeast	5,013			4,152
Florida	5,503			99
Texas	7,046			3,878
North	3,141			(5,161		)
Southwest	(941		)	(5,063		)
Other homebuilding (a)	(46,610		)	(43,775		)
	(20,352		)	(46,365		)
Financial Services (b)	6,861			973
Consolidated income (loss) before income taxes	$	(13,491	)	$	(45,392	)

(a) Other homebuilding includes the amortization of intangible assets and capitalized interest and other costs not allocated to the operating segments.

(b) Financial Services income (loss) before income taxes includes interest income of $1.2 million and $1.0 million for the three months ended March 31, 2012 and 2011, respectivel

Land-Related Charges By Reporting Segment

	Land-Related Charges by Segment ($000's omitted)
	Three Months Ended
	March 31,
	2012			2011
Land and community valuation adjustments:
Northeast	$	—		$	—
Southeast	—			41
Florida	—			—
Texas	—			—
North	1,890			—
Southwest	1,810			—
Other homebuilding (a)	814			62
	$	4,514		$	103
Net realizable value adjustments (NRV) - land held for sale:
Northeast	$	—		$	—
Southeast	285			—
Florida	38			—
Texas	—			—
North	(119		)	—
Southwest	439			—
	$	643		$	—
Write-off of deposits and pre-acquisition costs:
Northeast	$	51		$	263
Southeast	555			205
Florida	11			—
Texas	25			13
North	97			62
Southwest	—			80
	$	739		$	623
Total land-related charges	$	5,896		$	726

(a) Primarily write-offs of capitalized interest related to land and community valuation adjustments.

Total Assets And Inventory By Reporting Segment

	Operating Data by Segment
	($000's omitted)
	March 31, 2012
	Homes Under Construction		Land Under Development		Land Held for Future Development		Total Inventory		Total Assets
Northeast	$	223,600	$	472,547	$	115,042	$	811,189	$	955,827
Southeast	165,451		310,318		122,021		597,790		623,150
Florida	136,848		325,395		103,392		565,635		636,887
Texas	132,932		291,496		75,263		499,691		558,512
North	256,753		384,737		61,831		703,321		785,103
Southwest	219,935		605,801		180,039		1,005,775		1,090,411
Other homebuilding (a)	46,519		284,190		70,306		401,015		1,996,631
	1,182,038		2,674,484		727,894		4,584,416		6,646,521
Financial Services	—		—		—		—		212,922
	$	1,182,038	$	2,674,484	$	727,894	$	4,584,416	$	6,859,443
	December 31, 2011
	Homes Under Construction		Land Under Development		Land Held for Future Development		Total Inventory		Total Assets
Northeast	$	237,722	$	457,010	$	119,549	$	814,281	$	957,844
Southeast	166,302		315,208		123,209		604,719		626,506
Florida	137,900		321,841		110,040		569,781		637,418
Texas	136,325		294,814		77,125		508,264		568,974
North	268,011		360,202		91,260		719,473		803,174
Southwest	216,067		577,656		216,554		1,010,277		1,099,058
Other homebuilding (a)	48,390		283,770		77,513		409,673		1,904,847
	1,210,717		2,610,501		815,250		4,636,468		6,597,821
Financial Services	—		—		—		—		287,799
	$	1,210,717	$	2,610,501	$	815,250	$	4,636,468	$	6,885,620

(a) Other homebuilding primarily includes capitalized interest, cash and equivalents, income taxes receivable, intangibles, and other corporate items that are not allocated to the operating segments.

XML

Shareholders' Equity (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Stockholders' Equity Note [Abstract]
Remaining value of stock repurchase programs authorization	$ 102,300,000
Stock repurchased under authorized repurchase program	0
Payments for Repurchase of Common Stock	$ (845,000)	$ (969,000)

XML

Inventory And Land Held For Sale (Schedule Of Impaired Communities And Related Charges) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Inventory Disclosure [Abstract]
Number of communities impaired	4	1
Fair value of communities impaired, net of impairment charges	$ 7,468	$ 483
Impairment charges	$ 4,514	$ 103

XML

Restructuring (Schedule Of Restructuring Charges) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Restructuring and Related Activities [Abstract]
Employee severance benefits	$ 195	$ 3,031
Lease exit and related costs	4,749	(51)
Other	0	(3)
Restructuring Charges	$ 4,944	$ 2,977

XML

Fair Value Disclosures (Hierarchy) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Fair Value, Inputs, Level 1 [Member]
Disclosed at fair value:
Cash and equivalents (including restricted cash)	$ 1,301,604	$ 1,184,931
Fair Value, Inputs, Level 2 [Member]
Disclosed at fair value:
Senior notes	3,030,286	2,765,151
Fair Value, Inputs, Level 2 [Member] | Whole Loan Commitments [Member]
Measured at fair value on a recurring basis:
Financial instruments measured at fair value on recurring basis	(46)	11
Fair Value, Inputs, Level 2 [Member] | Interest Rate Lock Commitments [Member]
Measured at fair value on a recurring basis:
Financial instruments measured at fair value on recurring basis	4,704	3,551
Fair Value, Inputs, Level 2 [Member] | Forward Contracts [Member]
Measured at fair value on a recurring basis:
Financial instruments measured at fair value on recurring basis	481	(3,470)
Fair Value, Inputs, Level 2 [Member] | Residential Mortgage Loans Available-For-Sale [Member]
Measured at fair value on a recurring basis:
Financial instruments measured at fair value on recurring basis	184,164	258,075
Loans Held For Investment Member | Fair Value, Inputs, Level 2 [Member]
Measured at fair value on a non-recurring basis
Assets measured at fair value on a non-recurring basis	1,896	2,324
House And Land Inventory Member | Fair Value, Inputs, Level 3 [Member]
Measured at fair value on a non-recurring basis
Assets measured at fair value on a non-recurring basis	$ 7,468	$ 23,766

XML

Supplemental Guarantor Information (Statement Of Cash Flows) (Details) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Net cash provided by (used in) operating activities	$ 114,690,000	$ (49,641,000)
Cash flows from investing activities:
Distributions from unconsolidated entities	0	1,021,000
Investments in unconsolidated entities	(49,000)	(1,968,000)
Net change in loans held for investment	293,000	255,000
Change in restricted cash related to letters of credit	11,938,000	(109,667,000)
Proceeds from the sale of fixed assets	4,475,000	2,441,000
Capital expenditures	(3,758,000)	(6,128,000)
Net cash provided by (used in) investing activities	12,899,000	(114,046,000)
Cash flows from financing activities:
Net borrowings (repayments) of other borrowings	1,920,000	(13,312,000)
Intercompany activities, net	0	0
Stock repurchases	(845,000)	(969,000)
Net cash provided by (used in) financing activities	1,075,000	(14,281,000)
Net increase (decrease) in cash and equivalents	128,664,000	(177,968,000)
Cash and equivalents at beginning of period	1,083,071,000	1,483,390,000
Cash and equivalents at end of period	1,211,735,000	1,305,422,000
Parent Company [Member]
Net cash provided by (used in) operating activities	(106,147,000)	4,542,000
Cash flows from investing activities:
Distributions from unconsolidated entities		0
Investments in unconsolidated entities	0	0
Net change in loans held for investment	0	0
Change in restricted cash related to letters of credit	11,938,000	(109,667,000)
Proceeds from the sale of fixed assets	0	0
Capital expenditures	0	0
Net cash provided by (used in) investing activities	11,938,000	(109,667,000)
Cash flows from financing activities:
Net borrowings (repayments) of other borrowings	0	(13,902,000)
Intercompany activities, net	105,054,000	202,578,000
Stock repurchases	(845,000)	(969,000)
Net cash provided by (used in) financing activities	104,209,000	187,707,000
Net increase (decrease) in cash and equivalents	10,000,000	82,582,000
Cash and equivalents at beginning of period	119,287,000	10,000,000
Cash and equivalents at end of period	129,287,000	92,582,000
Guarantor Subsidiaries [Member]
Net cash provided by (used in) operating activities	115,341,000	(73,387,000)
Cash flows from investing activities:
Distributions from unconsolidated entities		1,021,000
Investments in unconsolidated entities	(49,000)	(1,968,000)
Net change in loans held for investment	0	0
Change in restricted cash related to letters of credit	0	0
Proceeds from the sale of fixed assets	4,475,000	2,441,000
Capital expenditures	(3,249,000)	(5,097,000)
Net cash provided by (used in) investing activities	1,177,000	(3,603,000)
Cash flows from financing activities:
Net borrowings (repayments) of other borrowings	1,920,000	590,000
Intercompany activities, net	4,733,000	(154,222,000)
Stock repurchases	0	0
Net cash provided by (used in) financing activities	6,653,000	(153,632,000)
Net increase (decrease) in cash and equivalents	123,171,000	(230,622,000)
Cash and equivalents at beginning of period	875,561,000	1,106,623,000
Cash and equivalents at end of period	998,732,000	876,001,000
Non-Guarantor Subsidiaries [Member]
Net cash provided by (used in) operating activities	105,496,000	19,204,000
Cash flows from investing activities:
Distributions from unconsolidated entities		0
Investments in unconsolidated entities	0	0
Net change in loans held for investment	293,000	255,000
Change in restricted cash related to letters of credit	0	0
Proceeds from the sale of fixed assets	0	0
Capital expenditures	(509,000)	(1,031,000)
Net cash provided by (used in) investing activities	(216,000)	(776,000)
Cash flows from financing activities:
Net borrowings (repayments) of other borrowings	0	0
Intercompany activities, net	(109,787,000)	(48,356,000)
Stock repurchases	0	0
Net cash provided by (used in) financing activities	(109,787,000)	(48,356,000)
Net increase (decrease) in cash and equivalents	(4,507,000)	(29,928,000)
Cash and equivalents at beginning of period	88,223,000	366,767,000
Cash and equivalents at end of period	83,716,000	336,839,000
Eliminating Entries [Member]
Net cash provided by (used in) operating activities	0	0
Cash flows from investing activities:
Distributions from unconsolidated entities		0
Investments in unconsolidated entities	0	0
Net change in loans held for investment	0	0
Change in restricted cash related to letters of credit	0	0
Proceeds from the sale of fixed assets	0	0
Capital expenditures	0	0
Net cash provided by (used in) investing activities	0	0
Cash flows from financing activities:
Net borrowings (repayments) of other borrowings	0	0
Intercompany activities, net	0	0
Stock repurchases	0	0
Net cash provided by (used in) financing activities	0	0
Net increase (decrease) in cash and equivalents	0	0
Cash and equivalents at beginning of period	0	0
Cash and equivalents at end of period	$ 0	$ 0

XML

Segment Information (Total Assets And Inventory By Reportable Segment) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012		Dec. 31, 2011
Segment Reporting Information
Homes under construction	$ 1,182,038		$ 1,210,717
Land under development	2,674,484		2,610,501
Land held for future development	727,894		815,250
House and land inventory	4,584,416		4,636,468
Total assets	6,859,443		6,885,620
Northeast [Member]
Segment Reporting Information
Homes under construction	223,600		237,722
Land under development	472,547		457,010
Land held for future development	115,042		119,549
House and land inventory	811,189		814,281
Total assets	955,827		957,844
Southeast [Member]
Segment Reporting Information
Homes under construction	165,451		166,302
Land under development	310,318		315,208
Land held for future development	122,021		123,209
House and land inventory	597,790		604,719
Total assets	623,150		626,506
Florida [Member]
Segment Reporting Information
Homes under construction	136,848		137,900
Land under development	325,395		321,841
Land held for future development	103,392		110,040
House and land inventory	565,635		569,781
Total assets	636,887		637,418
Texas [Member]
Segment Reporting Information
Homes under construction	132,932		136,325
Land under development	291,496		294,814
Land held for future development	75,263		77,125
House and land inventory	499,691		508,264
Total assets	558,512		568,974
North [Member]
Segment Reporting Information
Homes under construction	256,753		268,011
Land under development	384,737		360,202
Land held for future development	61,831		91,260
House and land inventory	703,321		719,473
Total assets	785,103		803,174
Southwest [Member]
Segment Reporting Information
Homes under construction	219,935		216,067
Land under development	605,801		577,656
Land held for future development	180,039		216,554
House and land inventory	1,005,775		1,010,277
Total assets	1,090,411		1,099,058
Other Homebuilding [Member]
Segment Reporting Information
Homes under construction	46,519	[1]	48,390	[1]
Land under development	284,190	[1]	283,770	[1]
Land held for future development	70,306	[1]	77,513	[1]
House and land inventory	401,015	[1]	409,673	[1]
Total assets	1,996,631	[1]	1,904,847	[1]
Homebuilding [Member]
Segment Reporting Information
Homes under construction	1,182,038		1,210,717
Land under development	2,674,484		2,610,501
Land held for future development	727,894		815,250
House and land inventory	4,584,416		4,636,468
Total assets	6,646,521		6,597,821
Financial Services [Member]
Segment Reporting Information
Total assets	$ 212,922		$ 287,799

[1] Other homebuilding primarily includes capitalized interest, cash and equivalents, income taxes receivable, intangibles, and other corporate items that are not allocated to the operating segments.

XML

Restructuring

3 Months Ended

Mar. 31, 2012

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

Restructuring

In response to the challenging operating environment in recent years, we have taken a series of actions designed to reduce ongoing operating costs and improve operating efficiencies. As a result of these actions, we incurred total restructuring charges as summarized below ($000’s omitted):

	Three Months Ended
	March 31,
	2012		2011
Employee severance benefits	$	195	$	3,031
Lease exit costs	4,749		(51		)
Other	—		(3		)
	$	4,944	$	2,977

Of the total restructuring costs reflected in the above table, $2.4 million and $0.5 million are classified within Financial Services expenses for the three months ended March 31, 2012 and 2011, respectively. All other employee severance benefits are included within selling, general and administrative expense while lease exit and other costs are included in other expense (income), net. The remaining liability for employee severance benefits and exited leases totaled $0.7 million and $31.1 million, respectively, at March 31, 2012 and $2.6 million and $29.7 million, respectively, at December 31, 2011. Substantially all of the remaining liability for employee severance benefits will be paid within the next year, while cash expenditures related to the remaining liability for lease exit costs will be incurred over the remaining terms of the applicable office leases, which generally extend several years. The restructuring costs relate to various reportable segments and did not materially impact the comparability of any one segment.

XML

Inventory And Land Held For Sale (Land Held For Sale) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Inventory Disclosure [Abstract]
Land held for sale, gross	$ 184,250	$ 190,099
Net realizable value reserves	(48,018)	(54,792)
Land held for sale, net	$ 136,232	$ 135,307

XML

Commitments And Contingencies (Tables)

3 Months Ended

Mar. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Summary of changes in loan origination liability

Changes in these liabilities were as follows ($000's omitted):

	Three Months Ended
	March 31,
	2012			2011
Liabilities, beginning of period	$	128,330		$	93,057
Provision for losses	—			—
Settlements	(4,810		)	(10,597		)
Liabilities, end of period	$	123,520		$	82,460

Summary of changes in warranty liability

Changes to warranty liabilities were as follows ($000’s omitted):

	Three Months Ended
	March 31,
	2012			2011
Warranty liabilities, beginning of period	$	68,025		$	80,195
Warranty reserves provided	7,851			9,089
Payments	(11,521		)	(14,007		)
Other adjustments	65			(623		)
Warranty liabilities, end of period	$	64,420		$	74,654

Summary of changes in self-insurance liability

Changes in these liabilities were as follows ($000's omitted):

	Three Months Ended
	March 31,
	2012			2011
Balance, beginning of period	$	741,383		$	785,562
Reserves provided	12,978			14,924
Payments	(14,337		)	(25,734		)
Balance, end of period	$	740,024		$	774,752

XML

Debt (Tables)

3 Months Ended

Mar. 31, 2012

Debt Disclosure [Abstract]

Schedule of Senior Notes

Our senior notes are summarized as follows ($000’s omitted):

	March 31, 2012		December 31, 2011
5.45% unsecured senior notes due August 2012 (b)	$	96,634	$	96,795
6.25% unsecured senior notes due February 2013 (b)	62,692		62,677
5.125% unsecured senior notes due October 2013 (b)	117,522		117,197
5.25% unsecured senior notes due January 2014 (b)	255,887		255,882
5.70% unsecured senior notes due May 2014 (b)	312,613		311,900
5.20% unsecured senior notes due February 2015 (b)	207,916		207,906
5.25% unsecured senior notes due June 2015 (b)	271,557		270,551
6.50% unsecured senior notes due May 2016 (b)	469,774		469,147
7.625% unsecured senior notes due October 2017 (a)	149,400		149,373
7.875% unsecured senior notes due June 2032 (b)	299,119		299,108
6.375% unsecured senior notes due May 2033 (b)	398,436		398,418
6.00% unsecured senior notes due February 2035 (b)	299,396		299,390
7.375% unsecured senior notes due June 2046 (b)	150,000		150,000
Total senior notes – carrying value (c)	$	3,090,946	$	3,088,344
Estimated fair value	$	3,030,286	$	2,765,151

(a) Not redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries.

(b) Redeemable prior to maturity, guaranteed on a senior basis by certain wholly-owned subsidiaries.

(c) The recorded carrying value reflects the impact of various discounts and premiums that are amortized to interest cost over the respective terms of the senior notes

XML

Commitments And Contingencies (Changes To Anticipated Loan Losses) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Commitments and Contingencies Disclosure [Abstract]
Liabilities, beginning of period	$ 128,330	$ 93,057
Provision for losses	0	0
Settlements	(4,810)	(10,597)
Liabilities, end of period	$ 123,520	$ 82,460

XML

Segment Information Narrative (Details) (Financial Services [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Financial Services [Member]
Segment Reporting Information
Interest Income, Operating	$ 1.2	$ 1.0

XML

Supplemental Guarantor Information (Tables)

3 Months Ended

Mar. 31, 2012

Supplemental Guarantor Information [Abstract]

Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

MARCH 31, 2012

($000’s omitted)

	Unconsolidated								Eliminating Entries			Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries
ASSETS
Cash and equivalents	$	129,287		$	998,732	$	83,716		$	—		$	1,211,735
Restricted cash	71,261			3,755		14,853			—			89,869
House and land inventory	—			4,580,285		4,131			—			4,584,416
Land held for sale	—			136,232		—			—			136,232
Land, not owned, under option        agreements	—			26,121		—			—			26,121
Residential mortgage loans available-        for-sale	—			—		184,164			—			184,164
Securities purchased under agreements        to resell	54,513			—		(54,513		)	—			—
Investments in unconsolidated entities	1,529			29,914		2,703			—			34,146
Income taxes receivable	29,673			—		—			—			29,673
Other assets	20,010			350,709		33,295			—			404,014
Intangible assets	—			159,073		—			—			159,073
Deferred income tax assets	(15,517		)	23		15,494			—			—
Investments in subsidiaries and        intercompany accounts, net	5,029,795			6,756,981		6,069,822			(17,856,598		)	—
	$	5,320,551		$	13,041,825	$	6,353,665		$	(17,856,598	)	$	6,859,443
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, customer deposits,        accrued and other liabilities	$	85,627		$	1,273,759	$	265,133		$	—		$	1,624,519
Income tax liabilities	215,150			—		—			—			215,150
Senior notes	3,090,946			—		—			—			3,090,946
Total liabilities	3,391,723			1,273,759		265,133			—			4,930,615
Total shareholders’ equity	1,928,828			11,768,066		6,088,532			(17,856,598		)	1,928,828
	$	5,320,551		$	13,041,825	$	6,353,665		$	(17,856,598	)	$	6,859,443

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2011

($000’s omitted)

	Unconsolidated								Eliminating Entries			Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries
ASSETS
Cash and equivalents	$	119,287		$	875,561	$	88,223		$	—		$	1,083,071
Restricted cash	83,199			3,255		15,406			—			101,860
House and land inventory	—			4,632,337		4,131			—			4,636,468
Land held for sale	—			135,307		—			—			135,307
Land, not owned, under option        agreements	—			24,905		—			—			24,905
Residential mortgage loans available-        for-sale	—			—		258,075			—			258,075
Securities purchased under agreements        to resell	127,327			—		(127,327		)	—			—
Investments in unconsolidated entities	1,527			31,836		2,625			—			35,988
Income taxes receivable	27,154			—		—			—			27,154
Other assets	20,983			364,747		34,714			—			420,444
Intangible assets	—			162,348		—			—			162,348
Deferred income tax assets	(15,517		)	23		15,494			—			—
Investments in subsidiaries and        intercompany accounts, net	4,937,002			6,533,838		6,366,758			(17,837,598		)	—
	$	5,300,962		$	12,764,157	$	6,658,099		$	(17,837,598	)	$	6,885,620
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, customer deposits,        accrued and other liabilities	$	70,690		$	1,310,972	$	273,686		$	—		$	1,655,348
Income tax liabilities	203,313			—		—			—			203,313
Senior notes	3,088,344			—		—			—			3,088,344
Total liabilities	3,362,347			1,310,972		273,686			—			4,947,005
Total shareholders’ equity	1,938,615			11,453,185		6,384,413			(17,837,598		)	1,938,615
	$	5,300,962		$	12,764,157	$	6,658,099		$	(17,837,598	)	$	6,885,620

Consolidating Statement of Operations and Comprehensive Income (Loss)

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the three months ended March 31, 2012

($000’s omitted)

	Unconsolidated												Consolidated PulteGroup,  Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	813,786		$	—		$	—		$	813,786
Land sale revenues	—			38,398			—			—			38,398
	—			852,184			—			—			852,184
Financial Services	—			373			28,479			—			28,852
	—			852,557			28,479			—			881,036
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			712,166			—			—			712,166
Land sale cost of revenues	—			33,397			—			—			33,397
	—			745,563			—			—			745,563
Financial Services expenses	65			114			21,830			—			22,009
Selling, general and administrative        expenses	—			122,407			907			—			123,314
Other expense (income), net	(19		)	6,291			347			—			6,619
Interest income	(62		)	(1,113		)	(24		)	—			(1,199		)
Interest expense	217			—			—			—			217
Intercompany interest	109,133			(105,892		)	(3,241		)	—			—
Equity in (earnings) loss of        unconsolidated entities	(2		)	(1,916		)	(78		)	—			(1,996		)
Income (loss) before income taxes and        equity in income (loss) of        subsidiaries	(109,332		)	87,103			8,738			—			(13,491		)
Income tax expense (benefit)	29,191			(5,744		)	(25,272		)	—			(1,825		)
Income (loss) before equity in income        (loss) of subsidiaries	(138,523		)	92,847			34,010			—			(11,666		)
Equity in income (loss) of subsidiaries	126,857			34,483			50,131			(211,471		)	—
Net income (loss)	(11,666		)	127,330			84,141			(211,471		)	(11,666		)
Other comprehensive income (loss)	57			—			—			—			57
Comprehensive income (loss)	$	(11,609	)	$	127,330		$	84,141		$	(211,471	)	$	(11,609	)

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the three months ended March 31, 2011

($000’s omitted)

	Unconsolidated											Consolidated PulteGroup,  Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	782,471		$	—		$	—	$	782,471
Land sale revenues	—			1,296			—			—		1,296
	—			783,767			—			—		783,767
Financial Services	—			283			21,152			—		21,435
	—			784,050			21,152			—		805,202
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			685,030			—			—		685,030
Land sale cost of revenues	—			930			—			—		930
	—			685,960			—			—		685,960
Financial Services expenses	145			146			20,182			—		20,473
Selling, general and administrative        expenses	10,993			129,293			2,160			—		142,446
Other expense (income), net	41			4,743			(874		)	—		3,910
Interest income	—			(1,327		)	(110		)	—		(1,437		)
Interest expense	351			—			—			—		351
Intercompany interest	10,712			(8,644		)	(2,068		)	—		—
Equity in (earnings) loss of        unconsolidated entities	—			(1,049		)	(60		)	—		(1,109		)
Income (loss) before income taxes and        equity in income (loss) of        subsidiaries	(22,242		)	(25,072		)	1,922			—		(45,392		)
Income tax expense (benefit)	(707		)	(5,801		)	642			—		(5,866		)
Income (loss) before equity in income        (loss) of subsidiaries	(21,535		)	(19,271		)	1,280			—		(39,526		)
Equity in income (loss) of subsidiaries	(17,991		)	1,560			(67,311		)	83,742		—
Net income (loss)	(39,526		)	(17,711		)	(66,031		)	83,742		(39,526		)
Other comprehensive income (loss)	(42		)	—			—			—		(42		)
Comprehensive income (loss)	$	(39,568	)	$	(17,711	)	$	(66,031	)	$	83,742	$	(39,568	)

Consolidating Statement Of Cash Flows

CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2012

($000’s omitted)

	Unconsolidated											Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Net cash provided by (used in)    operating activities	$	(106,147	)	$	115,341		$	105,496		$	—	$	114,690
Cash flows from investing activities:
Investments in unconsolidated entities	—			(49		)	—			—		(49		)
Net change in loans held for investment	—			—			293			—		293
Change in restricted cash related to      letters of credit	11,938			—			—			—		11,938
Proceeds from the sale of fixed assets	—			4,475			—			—		4,475
Capital expenditures	—			(3,249		)	(509		)	—		(3,758		)
Net cash provided by (used in) investing    activities	11,938			1,177			(216		)	—		12,899
Cash flows from financing activities:
Net borrowings (repayments) of other      borrowings	—			1,920			—			—		1,920
Intercompany activities, net	105,054			4,733			(109,787		)	—		—
Stock repurchases	(845		)	—			—			—		(845		)
Net cash provided by (used in)    financing activities	104,209			6,653			(109,787		)	—		1,075
Net increase (decrease) in cash and    equivalents	10,000			123,171			(4,507		)	—		128,664
Cash and equivalents at beginning of    period	119,287			875,561			88,223			—		1,083,071
Cash and equivalents at end of period	$	129,287		$	998,732		$	83,716		$	—	$	1,211,735

CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2011

($000’s omitted)

	Unconsolidated											Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Net cash provided by (used in)     operating activities	$	4,542		$	(73,387	)	$	19,204		$	—	$	(49,641	)
Cash flows from investing activities:
Distributions from unconsolidated      entities	—			1,021			—			—		1,021
Investments in unconsolidated entities	—			(1,968		)	—			—		(1,968		)
Net change in loans held for investment	—			—			255			—		255
Change in restricted cash related to     letters of credit	(109,667		)	—			—			—		(109,667		)
Proceeds from the sale of fixed assets	—			2,441			—			—		2,441
Capital expenditures	—			(5,097		)	(1,031		)	—		(6,128		)
Net cash provided by (used in) investing     activities	(109,667		)	(3,603		)	(776		)	—		(114,046		)
Cash flows from financing activities:
Net borrowings (repayments) of other      borrowings	(13,902		)	590			—			—		(13,312		)
Intercompany activities, net	202,578			(154,222		)	(48,356		)	—		—
Stock repurchases	(969		)	—			—			—		(969		)
Net cash provided by (used in)    financing activities	187,707			(153,632		)	(48,356		)	—		(14,281		)
Net increase (decrease) in cash and     equivalents	82,582			(230,622		)	(29,928		)	—		(177,968		)
Cash and equivalents at beginning of     period	10,000			1,106,623			366,767			—		1,483,390
Cash and equivalents at end of period	$	92,582		$	876,001		$	336,839		$	—	$	1,305,422

XML

Basis Of Presentation And Significant Accounting Policies (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Unfunded settlements	$ 19,300,000		$ 13,000,000
Lease exit and related costs	4,749,000	(51,000)
Earnings attributable to restricted shareholders	0	0
Number of VIEs requiring consolidation	0		0
Land, not owned, under option agreements	26,121,000		24,905,000
Liabilities for land, not owned, under option agreements	26,121,000		24,905,000
Residential mortgage loans available-for-sale	184,164,000		258,075,000
Residential mortgage loans available-for-sale aggregate outstanding principal balance	177,500,000		248,200,000
Net gain (loss) from change in fair value	500,000	500,000
Net gains from the sale of mortgages	19,000,000	12,800,000
Servicing rights recognized	4,700,000	4,900,000
Interest rate lock commitments, face value	137,200,000		97,600,000
Unexpired cash forward contracts	277,000,000		311,500,000
Whole loan investor commitments	1,700,000		1,600,000
Minimum [Member]
Period of Reimbursement of Payments on Loan Prepay in Days	90
Maximum [Member]
Period of Reimbursement of Payments on Loan Prepay in Days	120
Variability in future cash flows of derivative instruments in days	60
Financial Services [Member]
Lease exit and related costs	$ 2,400,000

XML

Basis Of Presentation And Significant Accounting Policies

3 Months Ended

Mar. 31, 2012

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Summary of significant accounting policies

Basis of presentation

PulteGroup, Inc. is one of the largest homebuilders in the United States, and our common stock trades on the New York Stock Exchange under the ticker symbol “PHM”. Unless the context otherwise requires, the terms "PulteGroup", the "Company", "we", "us", and "our" used herein refer to PulteGroup, Inc. and its subsidiaries. While our subsidiaries engage primarily in the homebuilding business, we also have mortgage banking operations, conducted principally through Pulte Mortgage LLC (“Pulte Mortgage”), and title operations.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2011.

Use of estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Reclassification

Certain prior period amounts have been reclassified to conform to the current year presentation.

Subsequent events

We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission ("SEC").

Cash and equivalents

Cash and equivalents include institutional money market investments and time deposits with a maturity of three months or less when acquired. Cash and equivalents at March 31, 2012 and December 31, 2011 also included $19.3 million and $13.0 million, respectively, of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit.

Restricted cash

We maintain certain cash balances that are restricted as to their use. Restricted cash consists primarily of deposits maintained with financial institutions under certain cash-collateralized letter of credit agreements (see Note 9). The remaining balances relate to certain other accounts with restrictions, including customer deposits on home sales that are temporarily restricted by regulatory requirements until title transfers to the homebuyer.

Other expense (income), net

Other expense (income), net consists of the following ($000’s omitted):

	Three Months Ended
	March 31,
	2012		2011
Write-offs of deposits and pre-acquisition costs	$	739	$	623
Lease exit and related costs (a)	2,359		(82		)
Amortization of intangible assets	3,275		3,275
Miscellaneous expense (income), net	246		94
	$	6,619	$	3,910

(a) Excludes $2.4 million of lease exit costs classified within Financial Services expense during the three months ended March 31, 2012. Such costs were immaterial during the three months ended March 31, 2011. See Note 2.

Notes receivable

In certain instances, we may accept consideration for land sales or other transactions in the form of a note receivable. The counterparties for these transactions are generally land developers or other real estate investors. We consider the creditworthiness of the counterparty when evaluating the relative risk and return involved in pursuing the applicable transaction. Due to the unique facts and circumstances surrounding each receivable, we assess the need for an allowance on an individual basis. Factors considered as part of this assessment include the counterparty's payment history, the value of any underlying collateral, communications with the counterparty, knowledge of the counterparty's financial condition and plans, and the current and expected economic environment. Allowances are recorded in other expense (income), net when it becomes likely that some amount will not be collectible. Such receivables are reported net of allowance for credit losses within other assets. Notes receivable are written off when it is determined that collection efforts will no longer be pursued. Interest income is recognized as earned.

The following represents our notes receivable and related allowance for credit losses at March 31, 2012 and December 31, 2011 ($000’s omitted):

	March 31, 2012			December 31, 2011
Notes receivable, gross	$	78,579		$	78,834
Allowance for credit losses	(44,091		)	(41,647		)
Notes receivable, net	$	34,488		$	37,187

We also record other receivables from various parties in the normal course of business, including amounts due from municipalities, insurance companies, and vendors. Such receivables are generally non-interest bearing and non-collateralized, payable either on demand or upon the occurrence of a specified event, and are generally reported in other assets. See Residential mortgage loans available-for-sale in Note 1 for a discussion of our receivables related to mortgage operations.

Earnings per share

Basic earnings per share is computed by dividing income (loss) available to common shareholders (the “numerator”) by the weighted-average number of common shares, adjusted for non-vested shares of restricted stock (the “denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the denominator is increased to include the dilutive effects of stock options, non-vested restricted stock, and other potentially dilutive instruments. Any stock options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation. Due to the net loss recorded during the periods, all stock options, non-vested restricted stock, and other potentially dilutive instruments were excluded from the calculation for the three months ended March 31, 2012 and 2011.

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. The two-class method determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and their respective participation rights in undistributed earnings. Although our outstanding restricted stock and restricted stock units are considered participating securities, there were no earnings attributable to restricted shareholders during the three months ended March 31, 2012 or 2011.

Land, not owned, under option agreements

In the ordinary course of business, we enter into land option agreements in order to procure land for the construction of homes in the future. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Under ASC 810, “Consolidation” (“ASC 810”), if the entity holding the land under option is a variable interest entity (“VIE”), our deposit represents a variable interest in that entity. If we are determined to be the primary beneficiary of the VIE, then we are required to consolidate the VIE.

Only a portion of our land option agreements are with entities considered VIEs. In evaluating whether there exists a need to consolidate a VIE, we take into consideration that the VIE is generally protected from the first dollar of loss under our land option agreement due to our deposit. Likewise, the VIE's gains are generally capped based on the purchase price within the land option agreement. However, we generally have little control or influence over the operations of these VIEs due to our lack of an equity interest in them. Additionally, creditors of the VIE have no recourse against us, and we do not provide financial or other support to these VIEs other than as stipulated in the land option agreements. Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the applicable land option agreements. In recent years, we have canceled a significant number of land option agreements, which has resulted in significant write-offs of the related deposits and pre-acquisition costs but did not expose us to the overall risks or losses of the applicable VIEs. No VIEs required consolidation under ASC 810 at either March 31, 2012 or December 31, 2011.

Additionally, we determined that certain land option agreements represent financing arrangements pursuant to ASC 470-40, “Accounting for Product Financing Arrangements” (“ASC 470-40”), even though we generally have no obligation to pay these future amounts. As a result, we recorded $26.1 million and $24.9 million at March 31, 2012 and December 31, 2011, respectively, to land, not owned, under option agreements with a corresponding increase to accrued and other liabilities. Such amounts represent the remaining purchase price under the land option agreements, some of which are with VIEs, in the event we exercise the purchase rights under the agreements.

The following provides a summary of our interests in land option agreements as of March 31, 2012 and December 31, 2011 ($000’s omitted):

	March 31, 2012						December 31, 2011
	Deposits and Pre-acquisition Costs		Remaining Purchase Price		Land, Not Owned, Under Option Agreements		Deposits and Pre-acquisition Costs		Remaining Purchase Price		Land, Not Owned, Under Option Agreements
Consolidated VIEs	$	3,208	$	12,193	$	4,461	$	2,781	$	5,957	$	3,837
Unconsolidated VIEs	21,121		231,010		—		21,180		240,958		—
Other land option        agreements	32,026		456,211		21,660		33,086		451,079		21,068
	$	56,355	$	699,414	$	26,121	$	57,047	$	697,994	$	24,905

Residential mortgage loans available-for-sale

Substantially all of the loans originated by us are sold in the secondary mortgage market within a short period of time after origination. In accordance with ASC 825, “Financial Instruments” (“ASC 825”), we use the fair value option for residential mortgage loans available-for-sale. Election of the fair value option for these loans allows a better offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. We do not designate any derivative instruments as hedges or apply the hedge accounting provisions of ASC 815, “Derivatives and Hedging.” Fair values for agency residential mortgage loans available-for-sale are determined based on quoted market prices for comparable instruments. Fair values for non-agency residential mortgage loans available-for-sale are determined based on purchase commitments from whole loan investors and other relevant market information available to management. See Note 10 for discussion of the risks retained related to mortgage loan originations.

Expected gains and losses from the sale of residential mortgage loans and their related servicing rights are included in the measurement of interest rate lock commitments that are accounted for at fair value through Financial Services revenues at the time of commitment.  Subsequent changes in the fair value of these loans are reflected in Financial Services revenues as they occur. At March 31, 2012 and December 31, 2011, residential mortgage loans available-for-sale had an aggregate fair value of $184.2 million and $258.1 million, respectively, and an aggregate outstanding principal balance of $177.5 million and $248.2 million, respectively. The net gain (loss) resulting from changes in fair value of these loans totaled $0.5 million for both the three months ended March 31, 2012 and 2011. These changes in fair value were substantially offset by changes in fair value of the corresponding hedging instruments. Net gains from the sale of mortgages were $19.0 million and $12.8 million during the three months ended March 31, 2012 and 2011, respectively, and have been included in Financial Services revenues.

Mortgage servicing rights

We sell the servicing rights for the loans we originate on a flow basis through fixed price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning the servicing rights for only a short period of time. We recognize the fair value of our rights to service a mortgage loan as revenue at the time of entering into an interest rate lock commitment with a borrower. Due to the short period of time the servicing rights are held, we do not amortize the servicing asset. The servicing sales contracts provide for the reimbursement of payments made by the purchaser if loans prepay within specified periods of time, generally within 90 to 120 days after sale. We establish reserves for this liability at the time the sale is recorded. Such reserves were immaterial at March 31, 2012 and December 31, 2011 and are included in accrued and other liabilities. Servicing rights recognized in Financial Services revenues totaled $4.7 million and $4.9 million during the three months ended March 31, 2012 and 2011, respectively.

Derivative instruments and hedging activities

We are exposed to market risks from commitments to lend, movements in interest rates, and canceled or modified commitments to lend. A commitment to lend at a specific interest rate (an interest rate lock commitment) is a derivative financial instrument (interest rate is locked to the borrower). In order to reduce these risks, we use other derivative financial instruments to economically hedge the interest rate lock commitment. The principal derivative instruments we use to hedge this risk are forward contracts on mortgage-backed securities and whole loan investor commitments. We enter into these derivative financial instruments based upon our portfolio of interest rate lock commitments and closed loans. We do not use any derivative financial instruments for trading purposes.

Fair values for interest rate lock commitments, including the value of servicing rights, are based on market prices for similar instruments. At March 31, 2012 and December 31, 2011, we had interest rate lock commitments in the total amount of $137.2 million and $97.6 million, respectively, which were originated at interest rates prevailing at the date of commitment. Since we can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements. We evaluate the creditworthiness of these transactions through our normal credit policies.

Forward contracts on mortgage-backed securities are commitments to either purchase or sell a specified financial instrument at a specified future date for a specified price and may be settled in cash, by offsetting the position, or through the delivery of the financial instrument. Forward contracts on mortgage-backed securities are the predominant derivative financial instruments we use to minimize the market risk during the period from the time we extend an interest rate lock to a loan applicant until the time the loan is sold to an investor. Forward contracts on mortgage-backed securities are valued based on market prices for similar instruments. We also use whole loan investor commitments, which are obligations of the investor to buy loans at a specified price within a specified time period. Fair values for whole loan investor commitments are based on market prices for similar instruments from the specific whole loan investor. At March 31, 2012 and December 31, 2011, we had unexpired forward contracts of $277.0 million and $311.5 million, respectively, and whole loan investor commitments of $1.7 million and $1.6 million, respectively. Changes in the fair value of interest rate lock commitments and other derivative financial instruments are recognized in Financial Services revenues, and the fair values are reflected in other assets or other liabilities, as applicable.

There are no credit-risk-related contingent features within our derivative agreements, and counterparty risk is considered minimal. Gains and losses on interest rate lock commitments are substantially offset by corresponding gains or losses on forward contracts on mortgage-backed securities and whole loan investor commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 60 days.

The fair value of derivative instruments and their location in the Condensed Consolidated Balance Sheet is summarized below ($000’s omitted):

	March 31, 2012				December 31, 2011
	Other Assets		Other Liabilities		Other Assets		Other Liabilities
Interest rate lock commitments	$	4,707	$	3	$	3,552	$	1
Forward contracts	788		307		44		3,514
Whole loan commitments	14		60		52		41
	$	5,509	$	370	$	3,648	$	3,556

New accounting pronouncements

In May 2011, the FASB issued Accounting Standards Update No. 2011-04, “Fair Value Measurement” (“ASU 2011-04”), which amended Accounting Standards Codification (ASC) 820 to clarify existing guidance and minimize differences between U.S. GAAP and International Financial Reporting Standards (IFRS). ASU 2011-04 requires entities to provide information about valuation techniques and unobservable inputs used in Level 3 fair value measurements and provide additional disclosures for classes of assets and liabilities disclosed at fair value. We adopted ASU 2011-04 as of January 1, 2012, which did not have a material impact on our financial statements.

In June 2011, the FASB issued Accounting Standards Update No. 2011-05, “Statement of Comprehensive Income” (“ASU 2011-05”), which requires entities to present net income and other comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income. ASU 2011-05 was effective for our fiscal year beginning January 1, 2012. The standard did not impact our reported results of operations but did impact our financial statement presentation. We now present items of other comprehensive income in the Statement of Consolidated Comprehensive Income rather than in the Statement of Shareholders' Equity

XML

Basis Of Presentation And Significant Accounting Policies (Other Expense (Income), Net) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Other expense (income), net [Line Items]
Write-off of deposits and pre-acquisition costs	$ 739		$ 623
Lease exit and related costs	4,749		(51)
Amortization of intangible assets	3,275		3,275
Miscellaneous expense (income), net	246		94
Other expense (income), net	6,619		3,910
Homebuilding [Member]
Other expense (income), net [Line Items]
Lease exit and related costs	$ 2,359	[1]	$ (82)	[1]

[1] Excludes $2.4 million of lease exit costs classified within Financial Services expense during the three months ended March 31, 2012. Such costs were immaterial during the three months ended March 31, 2011. See Note 2.

XML

Inventory And Land Held For Sale (Information Related To Interest Capitalized Into Homebuilding Inventory) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Inventory Disclosure [Abstract]
Interest in inventory, beginning of period	$ 355,068		$ 323,379
Interest capitalized	51,323		56,191
Interest expensed	(47,186)		(34,816)
Interest in inventory, end of period	359,205		344,754
Interest incurred	$ 51,323	[1]	$ 56,191	[1]

[1] Homebuilding interest incurred includes interest on senior debt and certain other financing arrangements.

XML

Debt (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended				3 Months Ended				3 Months Ended
	Mar. 31, 2011	Mar. 31, 2012	Dec. 31, 2011	Mar. 30, 2011	Mar. 31, 2012 Unsecured Letter Of Credit Facility [Member]	Dec. 31, 2011 Unsecured Letter Of Credit Facility [Member]	Mar. 31, 2012 Letter Of Credit [Member]	Dec. 31, 2011 Letter Of Credit [Member]	Mar. 31, 2012 Unsecured revolving credit facility [Member]	Mar. 30, 2011 Unsecured revolving credit facility [Member]
Debt Instrument
Maximum borrowing capacity					$ 200.0		$ 190.0			$ 250.0
Credit Facility termination date				Mar. 30, 2011
Credit facility expiration date					June 2014				June 2012
Line of Credit Facility, Amount Outstanding				0
Cash collateral for borrowed securities				250.0
Write-off of unamortized issuance costs	1.3
Letters of Credit Outstanding, Amount		$ 219.3	$ 235.9		$ 148.0	$ 152.7	$ 71.3	$ 83.2

XML

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012		Dec. 31, 2011
ASSETS
Cash and equivalents	$ 1,211,735		$ 1,083,071
Restricted cash	89,869		101,860
House and land inventory	4,584,416		4,636,468
Land held for sale	136,232		135,307
Land, not owned, under option agreements	26,121		24,905
Residential mortgage loans available-for-sale	184,164		258,075
Investments in unconsolidated entities	34,146		35,988
Income taxes receivable	29,673		27,154
Other assets	404,014		420,444
Intangible assets	159,073		162,348
Total assets	6,859,443		6,885,620
Liabilities:
Accounts payable, including book overdrafts of $33,650 and $48,380 in 2012 and 2011, respectively	170,609		196,447
Customer deposits	71,580		46,960
Accrued and other liabilities	1,382,330		1,411,941
Income tax liabilities	215,150		203,313
Senior notes	3,090,946	[1]	3,088,344	[1]
Total liabilities	4,930,615		4,947,005
Shareholders' Equity	1,928,828		1,938,615
Total liabilities and shareholders' equity	$ 6,859,443		$ 6,885,620

[1] The recorded carrying value reflects the impact of various discounts and premiums that are amortized to interest cost over the respective terms of the senior notes.

XML

Segment Information (Operating Data By Segment) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Revenues:
Homebuilding	$ 852,184		$ 783,767
Financial Services	28,852		21,435
Consolidated revenues	881,036		805,202
Income (Loss) before Income Taxes:
Income (loss) before income taxes	(13,491)		(45,392)
Northeast [Member]
Revenues:
Homebuilding	140,334		126,311
Income (Loss) before Income Taxes:
Income (loss) before income taxes	6,496		(495)
Southeast [Member]
Revenues:
Homebuilding	133,408		142,555
Income (Loss) before Income Taxes:
Income (loss) before income taxes	5,013		4,152
Florida [Member]
Revenues:
Homebuilding	123,998		116,774
Income (Loss) before Income Taxes:
Income (loss) before income taxes	5,503		99
Texas [Member]
Revenues:
Homebuilding	130,191		131,156
Income (Loss) before Income Taxes:
Income (loss) before income taxes	7,046		3,878
North [Member]
Revenues:
Homebuilding	186,156		134,139
Income (Loss) before Income Taxes:
Income (loss) before income taxes	3,141		(5,161)
Southwest [Member]
Revenues:
Homebuilding	138,097		132,832
Income (Loss) before Income Taxes:
Income (loss) before income taxes	(941)		(5,063)
Other Homebuilding [Member]
Income (Loss) before Income Taxes:
Income (loss) before income taxes	(46,610)	[1]	(43,775)	[1]
Homebuilding [Member]
Income (Loss) before Income Taxes:
Income (loss) before income taxes	(20,352)		(46,365)
Financial Services [Member]
Income (Loss) before Income Taxes:
Income (loss) before income taxes	$ 6,861	[2]	$ 973	[2]

[1] Other homebuilding includes the amortization of intangible assets and capitalized interest and other costs not allocated to the operating segments.

[2] Financial Services income (loss) before income taxes includes interest income of $1.2 million and $1.0 million for the three months ended March 31, 2012 and 2011, respectively.

XML

Consolidated Statements Of Shareholders' Equity (USD $) In Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings (Accumulated Deficit) [Member]
Shareholders' Equity beginning of period at Dec. 31, 2010	$ 2,135,167	$ 3,820	$ 2,972,919	$ (1,519)	$ (840,053)
Shareholders' Equity, shares beginning of period at Dec. 31, 2010		382,028
Stock awards, net of cancellations		9	(9)
Stock awards, net of cancellations, shares		910
Stock repurchases	(969)	(1)	(1,002)		34
Stock repurchases, shares		(129)
Stock-based compensation	5,510	0	5,510	0	0
Net income (loss)	(39,526)				(39,526)
Other comprehensive income (loss)	(42)			(42)
Shareholders' Equity end of period at Mar. 31, 2011	2,100,140	3,828	2,977,418	(1,561)	(879,545)
Shareholders' Equity, shares end of period at Mar. 31, 2011		382,809
Shareholders' Equity beginning of period at Dec. 31, 2011	1,938,615	3,826	2,986,240	(1,306)	(1,050,145)
Shareholders' Equity, shares beginning of period at Dec. 31, 2011		382,608
Stock awards, net of cancellations		11	(11)
Stock awards, net of cancellations, shares		1,134
Stock repurchases	(845)	(1)	(727)		(117)
Stock repurchases, shares		(93)
Stock-based compensation	2,667	0	2,667	0	0
Net income (loss)	(11,666)				(11,666)
Other comprehensive income (loss)	57			57
Shareholders' Equity end of period at Mar. 31, 2012	$ 1,928,828	$ 3,836	$ 2,988,169	$ (1,249)	$ (1,061,928)
Shareholders' Equity, shares end of period at Mar. 31, 2012		383,649

XML

Supplemental Guarantor Information (Balance Sheet) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012		Dec. 31, 2011		Mar. 31, 2011	Dec. 31, 2010
ASSETS
Cash and equivalents	$ 1,211,735		$ 1,083,071		$ 1,305,422	$ 1,483,390
Restricted cash	89,869		101,860
House and land inventory	4,584,416		4,636,468
Land held for sale	136,232		135,307
Land, not owned, under option agreements	26,121		24,905
Residential mortgage loans available-for-sale	184,164		258,075
Securities purchased under agreements to resell	0		0
Investments in unconsolidated entities	34,146		35,988
Income taxes receivable	29,673		27,154
Other assets	404,014		420,444
Intangible assets	159,073		162,348
Deferred income tax assets	0		0
Investments in subsidiaries and intercompany accounts, net	0		0
Total assets	6,859,443		6,885,620
Liabilities:
Accounts payable, customer deposits, accrued and other liabilities	1,624,519		1,655,348
Income tax liabilities	215,150		203,313
Senior notes	3,090,946	[1]	3,088,344	[1]
Total liabilities	4,930,615		4,947,005
Total shareholders' equity	1,928,828		1,938,615		2,100,140	2,135,167
Total liabilities and shareholders' equity	6,859,443		6,885,620
Parent Company [Member]
ASSETS
Cash and equivalents	129,287		119,287		92,582	10,000
Restricted cash	71,261		83,199
House and land inventory	0		0
Land held for sale	0		0
Land, not owned, under option agreements	0		0
Residential mortgage loans available-for-sale	0		0
Securities purchased under agreements to resell	54,513		127,327
Investments in unconsolidated entities	1,529		1,527
Income taxes receivable	29,673		27,154
Other assets	20,010		20,983
Intangible assets	0		0
Deferred income tax assets	(15,517)		(15,517)
Investments in subsidiaries and intercompany accounts, net	5,029,795		4,937,002
Total assets	5,320,551		5,300,962
Liabilities:
Accounts payable, customer deposits, accrued and other liabilities	85,627		70,690
Income tax liabilities	215,150		203,313
Senior notes	3,090,946		3,088,344
Total liabilities	3,391,723		3,362,347
Total shareholders' equity	1,928,828		1,938,615
Total liabilities and shareholders' equity	5,320,551		5,300,962
Guarantor Subsidiaries [Member]
ASSETS
Cash and equivalents	998,732		875,561		876,001	1,106,623
Restricted cash	3,755		3,255
House and land inventory	4,580,285		4,632,337
Land held for sale	136,232		135,307
Land, not owned, under option agreements	26,121		24,905
Residential mortgage loans available-for-sale	0		0
Securities purchased under agreements to resell	0		0
Investments in unconsolidated entities	29,914		31,836
Income taxes receivable	0		0
Other assets	350,709		364,747
Intangible assets	159,073		162,348
Deferred income tax assets	23		23
Investments in subsidiaries and intercompany accounts, net	6,756,981		6,533,838
Total assets	13,041,825		12,764,157
Liabilities:
Accounts payable, customer deposits, accrued and other liabilities	1,273,759		1,310,972
Income tax liabilities	0		0
Senior notes	0		0
Total liabilities	1,273,759		1,310,972
Total shareholders' equity	11,768,066		11,453,185
Total liabilities and shareholders' equity	13,041,825		12,764,157
Non-Guarantor Subsidiaries [Member]
ASSETS
Cash and equivalents	83,716		88,223		336,839	366,767
Restricted cash	14,853		15,406
House and land inventory	4,131		4,131
Land held for sale	0		0
Land, not owned, under option agreements	0		0
Residential mortgage loans available-for-sale	184,164		258,075
Securities purchased under agreements to resell	(54,513)		(127,327)
Investments in unconsolidated entities	2,703		2,625
Income taxes receivable	0		0
Other assets	33,295		34,714
Intangible assets	0		0
Deferred income tax assets	15,494		15,494
Investments in subsidiaries and intercompany accounts, net	6,069,822		6,366,758
Total assets	6,353,665		6,658,099
Liabilities:
Accounts payable, customer deposits, accrued and other liabilities	265,133		273,686
Income tax liabilities	0		0
Senior notes	0		0
Total liabilities	265,133		273,686
Total shareholders' equity	6,088,532		6,384,413
Total liabilities and shareholders' equity	6,353,665		6,658,099
Eliminating Entries [Member]
ASSETS
Cash and equivalents	0		0		0	0
Restricted cash	0		0
House and land inventory	0		0
Land held for sale	0		0
Land, not owned, under option agreements	0		0
Residential mortgage loans available-for-sale	0		0
Securities purchased under agreements to resell	0		0
Investments in unconsolidated entities	0		0
Income taxes receivable	0		0
Other assets	0		0
Intangible assets	0		0
Deferred income tax assets	0		0
Investments in subsidiaries and intercompany accounts, net	(17,856,598)		(17,837,598)
Total assets	(17,856,598)		(17,837,598)
Liabilities:
Accounts payable, customer deposits, accrued and other liabilities	0		0
Income tax liabilities	0		0
Senior notes	0		0
Total liabilities	0		0
Total shareholders' equity	(17,856,598)		(17,837,598)
Total liabilities and shareholders' equity	$ (17,856,598)		$ (17,837,598)

[1] The recorded carrying value reflects the impact of various discounts and premiums that are amortized to interest cost over the respective terms of the senior notes.

XML

Basis Of Presentation And Significant Accounting Policies (Fair Value Of the Company's Derivative Instruments) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Other Assets	$ 5,509	$ 3,648
Other Liabilities	370	3,556
Forward Contracts [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Other Assets	788	44
Other Liabilities	307	3,514
Whole Loan Commitments [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Other Assets	14	52
Other Liabilities	60	41
Interest Rate Lock Commitments [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Other Assets	4,707	3,552
Other Liabilities	$ 3	$ 1

XML

Basis Of Presentation And Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2012

Accounting Policies [Abstract]

Schedule of Other expense (income), net

Other expense (income), net consists of the following ($000’s omitted):

	Three Months Ended
	March 31,
	2012		2011
Write-offs of deposits and pre-acquisition costs	$	739	$	623
Lease exit and related costs (a)	2,359		(82		)
Amortization of intangible assets	3,275		3,275
Miscellaneous expense (income), net	246		94
	$	6,619	$	3,910

(a) Excludes $2.4 million of lease exit costs classified within Financial Services expense during the three months ended March 31, 2012. Such costs were immaterial during the three months ended March 31, 2011. See Note 2

Schedule of Notes Receivable

The following represents our notes receivable and related allowance for credit losses at March 31, 2012 and December 31, 2011 ($000’s omitted):

	March 31, 2012			December 31, 2011
Notes receivable, gross	$	78,579		$	78,834
Allowance for credit losses	(44,091		)	(41,647		)
Notes receivable, net	$	34,488		$	37,187

Schedule Of Company Interests In Land Option Agreements

The following provides a summary of our interests in land option agreements as of March 31, 2012 and December 31, 2011 ($000’s omitted):

	March 31, 2012						December 31, 2011
	Deposits and Pre-acquisition Costs		Remaining Purchase Price		Land, Not Owned, Under Option Agreements		Deposits and Pre-acquisition Costs		Remaining Purchase Price		Land, Not Owned, Under Option Agreements
Consolidated VIEs	$	3,208	$	12,193	$	4,461	$	2,781	$	5,957	$	3,837
Unconsolidated VIEs	21,121		231,010		—		21,180		240,958		—
Other land option        agreements	32,026		456,211		21,660		33,086		451,079		21,068
	$	56,355	$	699,414	$	26,121	$	57,047	$	697,994	$	24,905

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair value of derivative instruments and their location in the Condensed Consolidated Balance Sheet is summarized below ($000’s omitted):

	March 31, 2012				December 31, 2011
	Other Assets		Other Liabilities		Other Assets		Other Liabilities
Interest rate lock commitments	$	4,707	$	3	$	3,552	$	1
Forward contracts	788		307		44		3,514
Whole loan commitments	14		60		52		41
	$	5,509	$	370	$	3,648	$	3,556

XML

Restructuring (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Segment Reporting Information
Restructuring Charges	$ 4,944,000	$ 2,977,000
Employee severance benefits liability	700,000		2,600,000
Lease exit liabilities	31,100,000		29,700,000
Financial Services [Member]
Segment Reporting Information
Restructuring Charges	$ 2,400,000	$ 500,000

XML

Inventory And Land Held For Sale (Tables)

3 Months Ended

Mar. 31, 2012

Inventory Disclosure [Abstract]

Components of Inventory

Major components of inventory were as follows ($000’s omitted):

	March 31, 2012		December 31, 2011
Homes under construction	$	1,182,038	$	1,210,717
Land under development	2,674,484		2,610,501
Land held for future development	727,894		815,250
	$	4,584,416	$	4,636,468

Capitalized interest rollforward

Information related to interest capitalized into inventory is as follows ($000’s omitted):

	Three Months Ended
	March 31,
	2012			2011
Interest in inventory, beginning of period	$	355,068		$	323,379
Interest capitalized	51,323			56,191
Interest expensed	(47,186		)	(34,816		)
Interest in inventory, end of period	$	359,205		$	344,754
Interest incurred*	$	51,323		$	56,191

* Homebuilding interest incurred includes interest on senior debt and certain other financing arrangements.

Fair Value, Measurement Inputs, Disclosure

The table below summarizes certain quantitative unobservable inputs utilized in determining the fair value of impaired communities at March 31, 2012:

Unobservable input	Range
Average selling price ($000s)	$198	-	$420
Sales pace per quarter (units)	4	-	7
Discount rate	12%	-	16%

Summary of Land Impairments

The table below provides, as of the date indicated, the number of communities for which we recognized impairment charges, the fair value of those communities at such date (net of impairment charges), and the amount of impairment charges recognized ($000’s omitted):

	2012					2011
Quarter Ended	Number of Communities Impaired	Fair Value of Communities Impaired, Net of Impairment Charges		Impairment Charges		Number of Communities Impaired	Fair Value of Communities Impaired, Net of Impairment Charges		Impairment Charges
March 31	4	$	7,468	$	4,514	1	$	483	$	103

Land Held for Sale

Land held for sale was as follows ($000’s omitted):

	March 31, 2012			December 31, 2011
Land held for sale, gross	$	184,250		$	190,099
Net realizable value reserves	(48,018		)	(54,792		)
Land held for sale, net	$	136,232		$	135,307

XML

Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Cash flows from operating activities:
Net income (loss)	$ (11,666)	$ (39,526)
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
Write-down of land and deposits and pre-acquisition costs	5,896	726
Depreciation and amortization	7,393	8,970
Stock-based compensation expense	3,719	5,510
Equity in (earnings) loss of unconsolidated entities	(1,996)	(1,109)
Distributions of earnings from unconsolidated entities	3,518	411
Other, net	103	781
Increase (decrease) in cash due to:
Restricted cash	53	864
Inventories	45,969	(10,315)
Residential mortgage loans available-for-sale	74,073	32,292
Other assets	10,257	79,383
Accounts payable, accrued and other liabilities	(34,466)	(122,825)
Income tax liabilities	11,837	(4,803)
Net cash provided by (used in) operating activities	114,690	(49,641)
Cash flows from investing activities:
Distributions from unconsolidated entities	0	1,021
Investments in unconsolidated entities	(49)	(1,968)
Net change in loans held for investment	293	255
Change in restricted cash related to letters of credit	11,938	(109,667)
Proceeds from the sale of fixed assets	4,475	2,441
Capital expenditures	(3,758)	(6,128)
Net cash provided by (used in) investing activities	12,899	(114,046)
Cash flows from financing activities:
Net borrowings (repayments) of other borrowings	1,920	(13,312)
Stock repurchases	(845)	(969)
Net cash provided by (used in) financing activities	1,075	(14,281)
Net increase (decrease) in cash and equivalents	128,664	(177,968)
Cash and equivalents at beginning of period	1,083,071	1,483,390
Cash and equivalents at end of period	1,211,735	1,305,422
Supplemental Cash Flow Information:
Interest paid (capitalized), net	(22,808)	(23,833)
Income taxes paid (refunded), net	$ (11,142)	$ (2,922)

XML

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Book overdrafts	$ 33,650	$ 48,380

XML

Commitments And Contingencies

3 Months Ended

Mar. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

Commitments and contingencies

Loan origination liabilities

Our mortgage operations may be responsible for losses associated with mortgage loans originated and sold to investors in the event of errors or omissions relating to representations and warranties that the loans sold meet certain requirements, including representations as to underwriting standards, the existence of primary mortgage insurance, and the validity of certain borrower representations in connection with the loan. If determined to be at fault, we either repurchase the loans from the investors or reimburse the investors' losses (a “make-whole” payment).

We sell substantially all of the loans we originate to investors in the secondary market within a short period of time after origination. Historically, our overall losses relating to this risk were not significant. Beginning in 2009, however, we experienced a significant increase in losses as a result of the high level of loan defaults and related losses in the mortgage industry and increasing aggressiveness by investors in presenting such claims to us. To date, the significant majority of these losses relates to loans originated in 2006 and 2007, during which period inherently riskier loan products became more common in the mortgage origination market. In 2006 and 2007, we originated $39.5 billion of loans, excluding loans originated by Centex's former subprime loan business sold by Centex in 2006. Because we generally do not retain the servicing rights to the loans we originate, information regarding the current and historical performance, credit quality, and outstanding balances of such loans is limited. Estimating these loan origination liabilities is further complicated by uncertainties surrounding numerous external factors, such as various macroeconomic factors (including unemployment rates and changes in home prices), actions taken by third parties, including the parties servicing the loans, and the U.S. federal government in its dual capacity as regulator of the U.S. mortgage industry and conservator of the government-sponsored enterprises commonly known as Fannie Mae and Freddie Mac, which own or guarantee the majority of mortgage loans in the U.S.

Most requests received to date relate to make-whole payments on loans that have been foreclosed, generally after a portion of the loan principal had been paid down, which reduces our exposure. Requests undergo extensive analysis to confirm the exposure, attempt to cure the identified defect, and, when necessary, determine our liability. We establish liabilities for such anticipated losses based upon, among other things, the level of current unresolved repurchase requests, the volume of estimated probable future repurchase requests, our ability to cure the defects identified in the repurchase requests, and the severity of the estimated loss upon repurchase. Determining these estimates and the resulting liability requires a significant level of management judgment. We are generally able to cure or refute over 60% of the requests received from investors such that repurchases or make-whole payments are not required. For those requests requiring repurchases or make-whole payments, actual loss severities generally approximate 50% of the outstanding principal balance.

Our current estimates assume that claim volumes will not decline to pre-2009 levels until after 2013. Given the volatility in the mortgage industry and the uncertainty regarding the ultimate resolution of these claims, it is reasonably possible that future losses may exceed our current estimates. Changes in these liabilities were as follows ($000's omitted):

	Three Months Ended
	March 31,
	2012			2011
Liabilities, beginning of period	$	128,330		$	93,057
Provision for losses	—			—
Settlements	(4,810		)	(10,597		)
Liabilities, end of period	$	123,520		$	82,460

We entered into an agreement in conjunction with the wind down of Centex's mortgage operations, which ceased loan origination activities in December 2009, that provides a guaranty for one major investor of loans originated by Centex. This guaranty provides that we will honor the potential repurchase obligations of Centex's mortgage operations related to breaches of representations and warranties in the origination of a certain pool of loans. Other than with respect to this pool of loans, our contractual repurchase obligations are limited to our mortgage subsidiaries, which are included in non-guarantor subsidiaries (see Note 11 for a discussion of non-guarantor subsidiaries).

The mortgage subsidiary of Centex also sold loans to a bank for inclusion in residential mortgage-backed securities (“RMBSs”) issued by the bank. In connection with these sales, Centex's mortgage subsidiary entered into agreements pursuant to which it may be required to indemnify the bank for losses incurred by investors in the RMBSs arising out of material errors or omissions in certain information provided by the mortgage subsidiary relating to the loans and loan origination process. The bank has notified us that it has been named defendant in two lawsuits alleging various violations of federal and state securities laws asserting that untrue statements of material fact were included in the registration statements used to market the sale of two RMBS transactions, which included $162 million of loans originated by Centex's mortgage subsidiary. The plaintiffs seek unspecified compensatory and/or rescissory damages on behalf of persons who purchased the securities. Neither Centex's mortgage subsidiary nor the Company is named as a defendant in these actions. These actions are in their preliminary stage, and we cannot yet quantify Centex's mortgage subsidiary's potential liability as a result of these indemnification obligations. We do not believe, however, that these matters will have a material adverse impact on the results of operations, financial position, or cash flows of the Company. We are aware of six other RMBS transactions with such indemnity provisions that include an aggregate $116 million of loans, however, we are not aware of any current or threatened legal proceedings regarding those transactions.

Community development and other special district obligations

A community development district or similar development authority (“CDD”) is a unit of local government created under various state statutes that utilizes the proceeds from the sale of bonds to finance the construction or acquisition of infrastructure assets of a development. A portion of the liability associated with the bonds, including principal and interest, is assigned to each parcel of land within the development. This debt is typically paid by subsequent special assessments levied by the CDD on the landowners. Generally, we are only responsible for paying the special assessments for the period in which we are the landowner of the applicable parcels. However, in certain limited instances we record a liability for future assessments that are fixed or determinable for a fixed or determinable period in accordance with ASC 970-470, “Real Estate Debt”. At March 31, 2012 and December 31, 2011, we had recorded $37.4 million and $38.4 million, respectively, in accrued liabilities for outstanding CDD obligations. During the three months ended March 31, 2011, we repurchased at a discount prior to their maturity CDD obligations with an aggregate principal balance of $27.5 million in order to improve the future financial performance of the related communities. The discount of $5.3 million was recognized as a reduction of cost of revenues over the lives of the applicable communities, which will extend for several years. There were no repurchases during the three months ended March 31, 2012.

Letters of credit and surety bonds

In the normal course of business, we post letters of credit and surety bonds pursuant to certain performance-related obligations, as security for certain land option agreements, and under various insurance programs. The majority of these letters of credit and surety bonds are in support of our land development and construction obligations to various municipalities, other government agencies, and utility companies related to the construction of roads, sewers, and other infrastructure. We had outstanding letters of credit and surety bonds totaling $219.3 million and $1.2 billion at March 31, 2012, respectively, and $235.9 million and $1.2 billion at December 31, 2011, respectively. In the event any such letter of credit or surety bond is called, we would be obligated to reimburse the issuer of the letter of credit or surety bond. We do not believe that a material amount, if any, of the letters of credit or surety bonds will be called. Our surety bonds generally do not have stated expiration dates. Rather, we are released from the surety bonds as the underlying performance is completed and accepted by the applicable counterparty. Because significant construction and development work has been performed related to the applicable projects but has not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed.

Litigation and regulatory matters

We are involved in various litigation and legal claims in the normal course of our business operations, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations.

We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss is reasonably estimable. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. In view of the inherent difficulty of predicting the outcome of these legal and regulatory matters, we generally cannot predict the ultimate resolution of the pending matters, the related timing, or the eventual loss. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. However, to the extent the liability arising from the ultimate resolution of any matter exceeds the estimates reflected in the recorded reserves relating to such matter, we could incur additional charges that could be significant.

Allowance for warranties

Home purchasers are provided with a limited warranty against certain building defects, including a one-year comprehensive limited warranty and coverage for certain other aspects of the home’s construction and operating systems for periods of up to ten years. We estimate the costs to be incurred under these warranties and record liabilities in the amount of such costs within Homebuilding home sale revenues at the time product revenue is recognized. Factors that affect our warranty liabilities include the number of homes sold, historical and anticipated rates of warranty claims, and the cost per claim. We periodically assess the adequacy of the warranty liabilities for each geographic market in which we operate and adjust the amounts as necessary. Actual warranty costs in the future could differ from the current estimates. Changes to warranty liabilities were as follows ($000’s omitted):

	Three Months Ended
	March 31,
	2012			2011
Warranty liabilities, beginning of period	$	68,025		$	80,195
Warranty reserves provided	7,851			9,089
Payments	(11,521		)	(14,007		)
Other adjustments	65			(623		)
Warranty liabilities, end of period	$	64,420		$	74,654

Self-insured risks

We maintain, and require our subcontractors to maintain, general liability insurance coverage. We also maintain builders' risk, property, errors and omissions, workers compensation, and other business insurance coverage. These insurance policies protect us against a portion of the risk of loss from claims. However, we retain a significant portion of the overall risk for such claims either through policies issued by our captive insurance subsidiaries or through our own self-insured per occurrence and aggregate retentions, deductibles, and claims in excess of available insurance policy limits.

Our general liability insurance includes coverage for certain construction defects. While construction defect claims can relate to a variety of circumstances, the majority of our claims relate to alleged problems with siding, plumbing, foundations and other concrete work, windows, roofing, and heating, ventilation and air conditioning systems. The availability of general liability insurance for the homebuilding industry and its subcontractors has become increasingly limited, and the insurance policies available require companies to maintain higher per occurrence and aggregate retention levels. In certain instances, we may offer our subcontractors the opportunity to purchase insurance through one of our captive insurance subsidiaries or to participate in a project-specific insurance program provided by the Company. Policies issued by the captive insurance subsidiaries represent self-insurance of these risks by the Company. This self-insured exposure is limited by reinsurance policies that we purchase. General liability coverage for the homebuilding industry is complex, and our coverage varies from policy year to policy year. We are self-insured for a per occurrence deductible, which is capped at an overall aggregate retention level. Beginning with the first dollar, amounts paid on insured claims satisfy our per occurrence and aggregate retention obligations. Any amounts incurred in excess of the occurrence or aggregate retention levels are covered by insurance up to our purchased coverage levels. Our insurance policies, including the captive insurance subsidiaries' reinsurance policies, are maintained with highly-rated underwriters for whom we believe counterparty default risk is not significant.

At any point in time, we are managing over 1,000 individual claims related to general liability, property, errors and omission, workers compensation, and other business insurance coverage. We reserve for costs associated with such claims (including expected claims management expenses relating to legal fees, expert fees, and claims handling expenses) on an undiscounted basis at the time product revenue is recognized for each home closing and evaluate the recorded liabilities based on actuarial analyses of our historical claims. The actuarial analyses calculate an estimate of the ultimate net cost of all unpaid losses, including estimates for incurred but not reported losses ("IBNR"). IBNR represents losses related to claims incurred but not yet reported plus development on reported claims. These estimates make up a significant portion of our liability and are subject to a high degree of uncertainty due to a variety of factors, including changes in claims reporting and resolution patterns, third party recoveries, insurance industry practices, the regulatory environment, and legal precedent. State regulations vary, but construction defect claims are reported and resolved over an extended period often exceeding ten years. In certain instances, we have the ability to recover a portion of our costs under various insurance policies or from subcontractors or other third parties. Estimates of such amounts are recorded when recovery is considered probable.

Our recorded reserves for all such claims totaled $740.0 million and $774.8 million at March 31, 2012 and 2011, respectively, the vast majority of which relate to general liability claims. The recorded reserves include loss estimates related to both (i) existing claims and related claim expenses and (ii) IBNR and related claim expenses. Liabilities related to IBNR and related claim expenses represented approximately 78% of the total general liability reserves at March 31, 2012 and 2011. The actuarial analyses that determine the IBNR portion of reserves consider a variety of factors, including the frequency and severity of losses, which are based on our historical claims experience supplemented by industry data. The actuarial analyses of the reserves also consider historical third party recovery rates and claims management expenses.

Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. Because the majority of our recorded reserves relates to IBNR, adjustments to reserve amounts for individual existing claims generally do not impact the recorded reserves materially. However, changes in the frequency and timing of reported claims and the estimates of specific claim values can impact the underlying inputs and trends utilized in the actuarial analyses, which could have a material impact on the recorded reserves. Because of the inherent uncertainty in estimating future losses related to these claims, actual costs could differ significantly from estimated costs. Changes in these liabilities were as follows ($000's omitted):

	Three Months Ended
	March 31,
	2012			2011
Balance, beginning of period	$	741,383		$	785,562
Reserves provided	12,978			14,924
Payments	(14,337		)	(25,734		)
Balance, end of period	$	740,024		$	774,752

The reserves provided reflected in the above table are classified within selling, general, and administrative expenses.

XML

Document And Entity Information	3 Months Ended
	Mar. 31, 2012	Apr. 20, 2012
Entity Information [Line Items]
Entity Registrant Name	PULTEGROUP INC/MI/
Entity Central Index Key	0000822416
Current Fiscal Year End Date	--03-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		383,649,300
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

Supplemental Guarantor Information

3 Months Ended

Mar. 31, 2012

Supplemental Guarantor Information [Abstract]

Supplemental Guarantor Information

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

MARCH 31, 2012

($000’s omitted)

	Unconsolidated								Eliminating Entries			Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries
ASSETS
Cash and equivalents	$	129,287		$	998,732	$	83,716		$	—		$	1,211,735
Restricted cash	71,261			3,755		14,853			—			89,869
House and land inventory	—			4,580,285		4,131			—			4,584,416
Land held for sale	—			136,232		—			—			136,232
Land, not owned, under option        agreements	—			26,121		—			—			26,121
Residential mortgage loans available-        for-sale	—			—		184,164			—			184,164
Securities purchased under agreements        to resell	54,513			—		(54,513		)	—			—
Investments in unconsolidated entities	1,529			29,914		2,703			—			34,146
Income taxes receivable	29,673			—		—			—			29,673
Other assets	20,010			350,709		33,295			—			404,014
Intangible assets	—			159,073		—			—			159,073
Deferred income tax assets	(15,517		)	23		15,494			—			—
Investments in subsidiaries and        intercompany accounts, net	5,029,795			6,756,981		6,069,822			(17,856,598		)	—
	$	5,320,551		$	13,041,825	$	6,353,665		$	(17,856,598	)	$	6,859,443
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, customer deposits,        accrued and other liabilities	$	85,627		$	1,273,759	$	265,133		$	—		$	1,624,519
Income tax liabilities	215,150			—		—			—			215,150
Senior notes	3,090,946			—		—			—			3,090,946
Total liabilities	3,391,723			1,273,759		265,133			—			4,930,615
Total shareholders’ equity	1,928,828			11,768,066		6,088,532			(17,856,598		)	1,928,828
	$	5,320,551		$	13,041,825	$	6,353,665		$	(17,856,598	)	$	6,859,443

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2011

($000’s omitted)

	Unconsolidated								Eliminating Entries			Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries
ASSETS
Cash and equivalents	$	119,287		$	875,561	$	88,223		$	—		$	1,083,071
Restricted cash	83,199			3,255		15,406			—			101,860
House and land inventory	—			4,632,337		4,131			—			4,636,468
Land held for sale	—			135,307		—			—			135,307
Land, not owned, under option        agreements	—			24,905		—			—			24,905
Residential mortgage loans available-        for-sale	—			—		258,075			—			258,075
Securities purchased under agreements        to resell	127,327			—		(127,327		)	—			—
Investments in unconsolidated entities	1,527			31,836		2,625			—			35,988
Income taxes receivable	27,154			—		—			—			27,154
Other assets	20,983			364,747		34,714			—			420,444
Intangible assets	—			162,348		—			—			162,348
Deferred income tax assets	(15,517		)	23		15,494			—			—
Investments in subsidiaries and        intercompany accounts, net	4,937,002			6,533,838		6,366,758			(17,837,598		)	—
	$	5,300,962		$	12,764,157	$	6,658,099		$	(17,837,598	)	$	6,885,620
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable, customer deposits,        accrued and other liabilities	$	70,690		$	1,310,972	$	273,686		$	—		$	1,655,348
Income tax liabilities	203,313			—		—			—			203,313
Senior notes	3,088,344			—		—			—			3,088,344
Total liabilities	3,362,347			1,310,972		273,686			—			4,947,005
Total shareholders’ equity	1,938,615			11,453,185		6,384,413			(17,837,598		)	1,938,615
	$	5,300,962		$	12,764,157	$	6,658,099		$	(17,837,598	)	$	6,885,620

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the three months ended March 31, 2012

($000’s omitted)

	Unconsolidated												Consolidated PulteGroup,  Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	813,786		$	—		$	—		$	813,786
Land sale revenues	—			38,398			—			—			38,398
	—			852,184			—			—			852,184
Financial Services	—			373			28,479			—			28,852
	—			852,557			28,479			—			881,036
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			712,166			—			—			712,166
Land sale cost of revenues	—			33,397			—			—			33,397
	—			745,563			—			—			745,563
Financial Services expenses	65			114			21,830			—			22,009
Selling, general and administrative        expenses	—			122,407			907			—			123,314
Other expense (income), net	(19		)	6,291			347			—			6,619
Interest income	(62		)	(1,113		)	(24		)	—			(1,199		)
Interest expense	217			—			—			—			217
Intercompany interest	109,133			(105,892		)	(3,241		)	—			—
Equity in (earnings) loss of        unconsolidated entities	(2		)	(1,916		)	(78		)	—			(1,996		)
Income (loss) before income taxes and        equity in income (loss) of        subsidiaries	(109,332		)	87,103			8,738			—			(13,491		)
Income tax expense (benefit)	29,191			(5,744		)	(25,272		)	—			(1,825		)
Income (loss) before equity in income        (loss) of subsidiaries	(138,523		)	92,847			34,010			—			(11,666		)
Equity in income (loss) of subsidiaries	126,857			34,483			50,131			(211,471		)	—
Net income (loss)	(11,666		)	127,330			84,141			(211,471		)	(11,666		)
Other comprehensive income (loss)	57			—			—			—			57
Comprehensive income (loss)	$	(11,609	)	$	127,330		$	84,141		$	(211,471	)	$	(11,609	)

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the three months ended March 31, 2011

($000’s omitted)

	Unconsolidated											Consolidated PulteGroup,  Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Revenues:
Homebuilding
Home sale revenues	$	—		$	782,471		$	—		$	—	$	782,471
Land sale revenues	—			1,296			—			—		1,296
	—			783,767			—			—		783,767
Financial Services	—			283			21,152			—		21,435
	—			784,050			21,152			—		805,202
Homebuilding Cost of Revenues:
Home sale cost of revenues	—			685,030			—			—		685,030
Land sale cost of revenues	—			930			—			—		930
	—			685,960			—			—		685,960
Financial Services expenses	145			146			20,182			—		20,473
Selling, general and administrative        expenses	10,993			129,293			2,160			—		142,446
Other expense (income), net	41			4,743			(874		)	—		3,910
Interest income	—			(1,327		)	(110		)	—		(1,437		)
Interest expense	351			—			—			—		351
Intercompany interest	10,712			(8,644		)	(2,068		)	—		—
Equity in (earnings) loss of        unconsolidated entities	—			(1,049		)	(60		)	—		(1,109		)
Income (loss) before income taxes and        equity in income (loss) of        subsidiaries	(22,242		)	(25,072		)	1,922			—		(45,392		)
Income tax expense (benefit)	(707		)	(5,801		)	642			—		(5,866		)
Income (loss) before equity in income        (loss) of subsidiaries	(21,535		)	(19,271		)	1,280			—		(39,526		)
Equity in income (loss) of subsidiaries	(17,991		)	1,560			(67,311		)	83,742		—
Net income (loss)	(39,526		)	(17,711		)	(66,031		)	83,742		(39,526		)
Other comprehensive income (loss)	(42		)	—			—			—		(42		)
Comprehensive income (loss)	$	(39,568	)	$	(17,711	)	$	(66,031	)	$	83,742	$	(39,568	)

CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2012

($000’s omitted)

	Unconsolidated											Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Net cash provided by (used in)    operating activities	$	(106,147	)	$	115,341		$	105,496		$	—	$	114,690
Cash flows from investing activities:
Investments in unconsolidated entities	—			(49		)	—			—		(49		)
Net change in loans held for investment	—			—			293			—		293
Change in restricted cash related to      letters of credit	11,938			—			—			—		11,938
Proceeds from the sale of fixed assets	—			4,475			—			—		4,475
Capital expenditures	—			(3,249		)	(509		)	—		(3,758		)
Net cash provided by (used in) investing    activities	11,938			1,177			(216		)	—		12,899
Cash flows from financing activities:
Net borrowings (repayments) of other      borrowings	—			1,920			—			—		1,920
Intercompany activities, net	105,054			4,733			(109,787		)	—		—
Stock repurchases	(845		)	—			—			—		(845		)
Net cash provided by (used in)    financing activities	104,209			6,653			(109,787		)	—		1,075
Net increase (decrease) in cash and    equivalents	10,000			123,171			(4,507		)	—		128,664
Cash and equivalents at beginning of    period	119,287			875,561			88,223			—		1,083,071
Cash and equivalents at end of period	$	129,287		$	998,732		$	83,716		$	—	$	1,211,735

CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2011

($000’s omitted)

	Unconsolidated											Consolidated PulteGroup, Inc.
	PulteGroup, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries
Net cash provided by (used in)     operating activities	$	4,542		$	(73,387	)	$	19,204		$	—	$	(49,641	)
Cash flows from investing activities:
Distributions from unconsolidated      entities	—			1,021			—			—		1,021
Investments in unconsolidated entities	—			(1,968		)	—			—		(1,968		)
Net change in loans held for investment	—			—			255			—		255
Change in restricted cash related to     letters of credit	(109,667		)	—			—			—		(109,667		)
Proceeds from the sale of fixed assets	—			2,441			—			—		2,441
Capital expenditures	—			(5,097		)	(1,031		)	—		(6,128		)
Net cash provided by (used in) investing     activities	(109,667		)	(3,603		)	(776		)	—		(114,046		)
Cash flows from financing activities:
Net borrowings (repayments) of other      borrowings	(13,902		)	590			—			—		(13,312		)
Intercompany activities, net	202,578			(154,222		)	(48,356		)	—		—
Stock repurchases	(969		)	—			—			—		(969		)
Net cash provided by (used in)    financing activities	187,707			(153,632		)	(48,356		)	—		(14,281		)
Net increase (decrease) in cash and     equivalents	82,582			(230,622		)	(29,928		)	—		(177,968		)
Cash and equivalents at beginning of     period	10,000			1,106,623			366,767			—		1,483,390
Cash and equivalents at end of period	$	92,582		$	876,001		$	336,839		$	—	$	1,305,422

XML

Consolidated Statements Of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Homebuilding
Home sale revenues	$ 813,786	$ 782,471
Land sale revenues	38,398	1,296
Total homebuilding revenues	852,184	783,767
Financial Services	28,852	21,435
Total revenues	881,036	805,202
Homebuilding Cost of Revenues:
Home sale cost of revenues	712,166	685,030
Land sale cost of revenues	33,397	930
Total cost of revenues	745,563	685,960
Financial Services expenses	22,009	20,473
Selling, general, and administrative expenses	123,314	142,446
Other expense (income), net	6,619	3,910
Interest income	(1,199)	(1,437)
Interest expense	217	351
Equity in (earnings) loss of unconsolidated entities	(1,996)	(1,109)
Income (loss) before income taxes	(13,491)	(45,392)
Income tax expense (benefit)	(1,825)	(5,866)
Net income (loss)	$ (11,666)	$ (39,526)
Net income (loss) per share:
Basic	$ (0.03)	$ (0.10)
Diluted	$ (0.03)	$ (0.10)
Number of shares used in calculation:
Basic	380,502	379,544
Diluted	380,502	379,544

XML

Investments In Unconsolidated Entities

3 Months Ended

Mar. 31, 2012

Equity Method Investments and Joint Ventures [Abstract]

Investments In Unconsolidated Entities

Investments in unconsolidated entities

We participate in a number of joint ventures with independent third parties. Many of these joint ventures purchase, develop, and/or sell land and homes in the U.S. and Puerto Rico. A summary of our joint ventures is presented below ($000’s omitted):

	March 31, 2012		December 31, 2011
Investments in joint ventures with debt non-recourse to PulteGroup	$	11,496	$	11,453
Investments in other active joint ventures	22,650		24,535
Total investments in unconsolidated entities	$	34,146	$	35,988
Total joint venture debt	$	11,022	$	11,107
PulteGroup proportionate share of joint venture debt:
Joint venture debt with limited recourse guaranties	$	1,156	$	1,202
Joint venture debt non-recourse to PulteGroup	2,061		2,009
PulteGroup's total proportionate share of joint venture debt	$	3,217	$	3,211

We recognized (income) expense from unconsolidated joint ventures of $(2.0) million and $(1.1) million during the three months ended March 31, 2012 and 2011, respectively. During the three months ended March 31, 2012 and 2011, we made capital contributions of $0.0 million and $2.0 million, respectively, and received capital and earnings distributions of $3.5 million and $1.4 million, respectively.

The timing of cash obligations under the joint venture and any related financing agreements varies by agreement and in certain instances is contingent upon the joint venture's sale of its land holdings. If additional capital contributions are required and approved, we would need to contribute our pro rata portion of those capital needs in order to not dilute our ownership in the joint ventures. While future capital contributions may be required, we believe the total amount of such contributions will be limited. Our maximum financial loss exposure related to joint ventures is unlikely to exceed the combined investment and limited recourse guaranty totals.

XML

Segment Information

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Segment Information

Segment information

Our Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the U.S. and the construction of housing on such land. For reporting purposes, our Homebuilding operations are aggregated into six reportable segments. During 2011, we realigned our organizational structure and reportable segment presentation. As part of the change in presentation, we removed the "Other non-operating" distinction. Amounts previously classified within "Other non-operating" have been reclassified to "Other homebuilding." Accordingly, the segment information provided in this note has been reclassified to conform to the current presentation for all periods presented.

Northeast:	Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, Virginia
Southeast:	Georgia, North Carolina, South Carolina, Tennessee
Florida:	Florida
Texas:	Texas
North:	Illinois, Indiana, Michigan, Minnesota, Missouri, Northern California, Ohio, Oregon, Washington
Southwest:	Arizona, Colorado, Hawaii, Nevada, New Mexico, Southern California

We also have one reportable segment for our Financial Services operations, which consist principally of mortgage banking and title operations. The Financial Services segment operates generally in the same markets as the Homebuilding segments.

Evaluation of segment performance is generally based on income before income taxes. Each reportable segment generally follows the same accounting policies described in Note 1 - "Summary of Significant Accounting Policies" to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2011.

	Operating Data by Segment ($000’s omitted)
	Three Months Ended
	March 31,
	2012			2011
Revenues:
Northeast	$	140,334		$	126,311
Southeast	133,408			142,555
Florida	123,998			116,774
Texas	130,191			131,156
North	186,156			134,139
Southwest	138,097			132,832
	852,184			783,767
Financial Services	28,852			21,435
Consolidated revenues	$	881,036		$	805,202
Income (loss) before income taxes:
Northeast	$	6,496		$	(495	)
Southeast	5,013			4,152
Florida	5,503			99
Texas	7,046			3,878
North	3,141			(5,161		)
Southwest	(941		)	(5,063		)
Other homebuilding (a)	(46,610		)	(43,775		)
	(20,352		)	(46,365		)
Financial Services (b)	6,861			973
Consolidated income (loss) before income taxes	$	(13,491	)	$	(45,392	)

(a) Other homebuilding includes the amortization of intangible assets and capitalized interest and other costs not allocated to the operating segments.

(b) Financial Services income (loss) before income taxes includes interest income of $1.2 million and $1.0 million for the three months ended March 31, 2012 and 2011, respectively.

	Land-Related Charges by Segment ($000's omitted)
	Three Months Ended
	March 31,
	2012			2011
Land and community valuation adjustments:
Northeast	$	—		$	—
Southeast	—			41
Florida	—			—
Texas	—			—
North	1,890			—
Southwest	1,810			—
Other homebuilding (a)	814			62
	$	4,514		$	103
Net realizable value adjustments (NRV) - land held for sale:
Northeast	$	—		$	—
Southeast	285			—
Florida	38			—
Texas	—			—
North	(119		)	—
Southwest	439			—
	$	643		$	—
Write-off of deposits and pre-acquisition costs:
Northeast	$	51		$	263
Southeast	555			205
Florida	11			—
Texas	25			13
North	97			62
Southwest	—			80
	$	739		$	623
Total land-related charges	$	5,896		$	726

(a) Primarily write-offs of capitalized interest related to land and community valuation adjustments.

	Operating Data by Segment
	($000's omitted)
	March 31, 2012
	Homes Under Construction		Land Under Development		Land Held for Future Development		Total Inventory		Total Assets
Northeast	$	223,600	$	472,547	$	115,042	$	811,189	$	955,827
Southeast	165,451		310,318		122,021		597,790		623,150
Florida	136,848		325,395		103,392		565,635		636,887
Texas	132,932		291,496		75,263		499,691		558,512
North	256,753		384,737		61,831		703,321		785,103
Southwest	219,935		605,801		180,039		1,005,775		1,090,411
Other homebuilding (a)	46,519		284,190		70,306		401,015		1,996,631
	1,182,038		2,674,484		727,894		4,584,416		6,646,521
Financial Services	—		—		—		—		212,922
	$	1,182,038	$	2,674,484	$	727,894	$	4,584,416	$	6,859,443
	December 31, 2011
	Homes Under Construction		Land Under Development		Land Held for Future Development		Total Inventory		Total Assets
Northeast	$	237,722	$	457,010	$	119,549	$	814,281	$	957,844
Southeast	166,302		315,208		123,209		604,719		626,506
Florida	137,900		321,841		110,040		569,781		637,418
Texas	136,325		294,814		77,125		508,264		568,974
North	268,011		360,202		91,260		719,473		803,174
Southwest	216,067		577,656		216,554		1,010,277		1,099,058
Other homebuilding (a)	48,390		283,770		77,513		409,673		1,904,847
	1,210,717		2,610,501		815,250		4,636,468		6,597,821
Financial Services	—		—		—		—		287,799
	$	1,210,717	$	2,610,501	$	815,250	$	4,636,468	$	6,885,620

(a) Other homebuilding primarily includes capitalized interest, cash and equivalents, income taxes receivable, intangibles, and other corporate items that are not allocated to the operating segments.

XML

Restructuring (Tables)

3 Months Ended

Mar. 31, 2012

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Related Costs

As a result of these actions, we incurred total restructuring charges as summarized below ($000’s omitted):

	Three Months Ended
	March 31,
	2012		2011
Employee severance benefits	$	195	$	3,031
Lease exit costs	4,749		(51		)
Other	—		(3		)
	$	4,944	$	2,977

XML

Basis Of Presentation And Significant Accounting Policies (Policy)

3 Months Ended

Mar. 31, 2012

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2011.

Use of Estimates Policy

Use of estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Reclassifications Policy

Reclassification

Certain prior period amounts have been reclassified to conform to the current year presentation

Subsequent Events Policy

Subsequent events

We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission ("SEC").

Cash and Cash Equivalents Policy

Cash and equivalents

Cash and equivalents include institutional money market investments and time deposits with a maturity of three months or less when acquired. Cash and equivalents at March 31, 2012 and December 31, 2011 also included $19.3 million and $13.0 million, respectively, of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit.

Restricted cash

We maintain certain cash balances that are restricted as to their use. Restricted cash consists primarily of deposits maintained with financial institutions under certain cash-collateralized letter of credit agreements (see Note 9). The remaining balances relate to certain other accounts with restrictions, including customer deposits on home sales that are temporarily restricted by regulatory requirements until title transfers to the homebuyer.

Notes receivable policy

Notes receivable

In certain instances, we may accept consideration for land sales or other transactions in the form of a note receivable. The counterparties for these transactions are generally land developers or other real estate investors. We consider the creditworthiness of the counterparty when evaluating the relative risk and return involved in pursuing the applicable transaction. Due to the unique facts and circumstances surrounding each receivable, we assess the need for an allowance on an individual basis. Factors considered as part of this assessment include the counterparty's payment history, the value of any underlying collateral, communications with the counterparty, knowledge of the counterparty's financial condition and plans, and the current and expected economic environment. Allowances are recorded in other expense (income), net when it becomes likely that some amount will not be collectible. Such receivables are reported net of allowance for credit losses within other assets. Notes receivable are written off when it is determined that collection efforts will no longer be pursued. Interest income is recognized as earned.

Earnings Per Share Policy

Earnings per share

Basic earnings per share is computed by dividing income (loss) available to common shareholders (the “numerator”) by the weighted-average number of common shares, adjusted for non-vested shares of restricted stock (the “denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the denominator is increased to include the dilutive effects of stock options, non-vested restricted stock, and other potentially dilutive instruments. Any stock options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation. Due to the net loss recorded during the periods, all stock options, non-vested restricted stock, and other potentially dilutive instruments were excluded from the calculation for the three months ended March 31, 2012 and 2011.

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. The two-class method determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and their respective participation rights in undistributed earnings. Although our outstanding restricted stock and restricted stock units are considered participating securities, there were no earnings attributable to restricted shareholders during the three months ended March 31, 2012 or 2011.

Land under Option Arrangements Policy

Land, not owned, under option agreements

In the ordinary course of business, we enter into land option agreements in order to procure land for the construction of homes in the future. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Under ASC 810, “Consolidation” (“ASC 810”), if the entity holding the land under option is a variable interest entity (“VIE”), our deposit represents a variable interest in that entity. If we are determined to be the primary beneficiary of the VIE, then we are required to consolidate the VIE.

Only a portion of our land option agreements are with entities considered VIEs. In evaluating whether there exists a need to consolidate a VIE, we take into consideration that the VIE is generally protected from the first dollar of loss under our land option agreement due to our deposit. Likewise, the VIE's gains are generally capped based on the purchase price within the land option agreement. However, we generally have little control or influence over the operations of these VIEs due to our lack of an equity interest in them. Additionally, creditors of the VIE have no recourse against us, and we do not provide financial or other support to these VIEs other than as stipulated in the land option agreements. Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the applicable land option agreements. In recent years, we have canceled a significant number of land option agreements, which has resulted in significant write-offs of the related deposits and pre-acquisition costs but did not expose us to the overall risks or losses of the applicable VIEs. No VIEs required consolidation under ASC 810 at either March 31, 2012 or December 31, 2011.

Additionally, we determined that certain land option agreements represent financing arrangements pursuant to ASC 470-40, “Accounting for Product Financing Arrangements” (“ASC 470-40”), even though we generally have no obligation to pay these future amounts. As a result, we recorded $26.1 million and $24.9 million at March 31, 2012 and December 31, 2011, respectively, to land, not owned, under option agreements with a corresponding increase to accrued and other liabilities. Such amounts represent the remaining purchase price under the land option agreements, some of which are with VIEs, in the event we exercise the purchase rights under the agreements.

Residential Mortgage Loans Available for Sale Policy

Residential mortgage loans available-for-sale

Substantially all of the loans originated by us are sold in the secondary mortgage market within a short period of time after origination. In accordance with ASC 825, “Financial Instruments” (“ASC 825”), we use the fair value option for residential mortgage loans available-for-sale. Election of the fair value option for these loans allows a better offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. We do not designate any derivative instruments as hedges or apply the hedge accounting provisions of ASC 815, “Derivatives and Hedging.” Fair values for agency residential mortgage loans available-for-sale are determined based on quoted market prices for comparable instruments. Fair values for non-agency residential mortgage loans available-for-sale are determined based on purchase commitments from whole loan investors and other relevant market information available to management. See Note 10 for discussion of the risks retained related to mortgage loan originations.

Expected gains and losses from the sale of residential mortgage loans and their related servicing rights are included in the measurement of interest rate lock commitments that are accounted for at fair value through Financial Services revenues at the time of commitment.  Subsequent changes in the fair value of these loans are reflected in Financial Services revenues as they occur.

Mortgage Servicing Rights Policy

Mortgage servicing rights

We sell the servicing rights for the loans we originate on a flow basis through fixed price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning the servicing rights for only a short period of time. We recognize the fair value of our rights to service a mortgage loan as revenue at the time of entering into an interest rate lock commitment with a borrower. Due to the short period of time the servicing rights are held, we do not amortize the servicing asset. The servicing sales contracts provide for the reimbursement of payments made by the purchaser if loans prepay within specified periods of time, generally within 90 to 120 days after sale. We establish reserves for this liability at the time the sale is recorded.

Derivatives Policy

Derivative instruments and hedging activities

We are exposed to market risks from commitments to lend, movements in interest rates, and canceled or modified commitments to lend. A commitment to lend at a specific interest rate (an interest rate lock commitment) is a derivative financial instrument (interest rate is locked to the borrower). In order to reduce these risks, we use other derivative financial instruments to economically hedge the interest rate lock commitment. The principal derivative instruments we use to hedge this risk are forward contracts on mortgage-backed securities and whole loan investor commitments. We enter into these derivative financial instruments based upon our portfolio of interest rate lock commitments and closed loans. We do not use any derivative financial instruments for trading purposes.

Fair values for interest rate lock commitments, including the value of servicing rights, are based on market prices for similar instruments. At March 31, 2012 and December 31, 2011, we had interest rate lock commitments in the total amount of $137.2 million and $97.6 million, respectively, which were originated at interest rates prevailing at the date of commitment. Since we can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements. We evaluate the creditworthiness of these transactions through our normal credit policies.

Forward contracts on mortgage-backed securities are commitments to either purchase or sell a specified financial instrument at a specified future date for a specified price and may be settled in cash, by offsetting the position, or through the delivery of the financial instrument. Forward contracts on mortgage-backed securities are the predominant derivative financial instruments we use to minimize the market risk during the period from the time we extend an interest rate lock to a loan applicant until the time the loan is sold to an investor. Forward contracts on mortgage-backed securities are valued based on market prices for similar instruments. We also use whole loan investor commitments, which are obligations of the investor to buy loans at a specified price within a specified time period. Fair values for whole loan investor commitments are based on market prices for similar instruments from the specific whole loan investor. At March 31, 2012 and December 31, 2011, we had unexpired forward contracts of $277.0 million and $311.5 million, respectively, and whole loan investor commitments of $1.7 million and $1.6 million, respectively. Changes in the fair value of interest rate lock commitments and other derivative financial instruments are recognized in Financial Services revenues, and the fair values are reflected in other assets or other liabilities, as applicable.

There are no credit-risk-related contingent features within our derivative agreements, and counterparty risk is considered minimal. Gains and losses on interest rate lock commitments are substantially offset by corresponding gains or losses on forward contracts on mortgage-backed securities and whole loan investor commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 60 days.

XML

Fair Value Disclosures

3 Months Ended

Mar. 31, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Fair value disclosures

ASC 820, “Fair Value Measurements and Disclosures,” provides a framework for measuring fair value in generally accepted accounting principles and establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy can be summarized as follows:

Level 1	Fair value determined based on quoted prices in active markets for identical assets or liabilities.
Level 2	Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active.
Level 3	Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques.

Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted):

Financial Instrument	Fair Value Hierarchy	Fair Value
		March 31, 2012			December 31, 2011
Measured at fair value on a recurring basis:
Residential mortgage loans available-for-sale	Level 2	$	184,164		$	258,075
Interest rate lock commitments	Level 2	4,704			3,551
Forward contracts	Level 2	481			(3,470		)
Whole loan commitments	Level 2	(46		)	11
Measured at fair value on a non-recurring basis:
Loans held for investment	Level 2	$	1,896		$	2,324
House and land inventory	Level 3	7,468			23,766
Disclosed at fair value:
Cash and equivalents (including restricted cash)	Level 1	$	1,301,604		$	1,184,931
Senior notes	Level 2	3,030,286			2,765,151

See Note 1 regarding the fair value of mortgage loans available-for-sale and derivative instruments and hedging activities. Certain assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recoverable. The non-recurring fair values included in the table above represent only those assets whose carrying values were adjusted to fair value in the current quarter. We measured certain loans held for investment at fair value since the cost of the loans exceeded their fair value. Fair value of the loans was determined based on the fair value of the underlying collateral. For inventory, see Note 3 for a more detailed discussion of the valuation methods used.

The carrying amounts of cash and equivalents approximate their fair values due to their short-term nature. The fair values of senior notes are based on quoted market prices, when available. If quoted market prices are not available, fair values are based on quoted market prices of similar issues.

XML

Supplemental Guarantor Information (Statement Of Operations) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Homebuilding
Home sale revenues	$ 813,786	$ 782,471
Land sale revenues	38,398	1,296
Total homebuilding revenues	852,184	783,767
Financial Services	28,852	21,435
Total revenues	881,036	805,202
Homebuilding Cost of Revenues:
Home sale cost of revenues	712,166	685,030
Land sale cost of revenues	33,397	930
Total cost of revenues	745,563	685,960
Financial Services expenses	22,009	20,473
Selling, general, and administrative expenses	123,314	142,446
Other expense (income), net	6,619	3,910
Interest income	(1,199)	(1,437)
Interest expense	217	351
Intercompany interest	0	0
Equity in (earnings) loss of unconsolidated entities	(1,996)	(1,109)
Income (loss) before income taxes and equity in income (loss) of subsidiaries	(13,491)	(45,392)
Income tax expense (benefit)	(1,825)	(5,866)
Income (loss) before equity in income (loss) of subsidiaries	(11,666)	(39,526)
Equity in income (loss) of subsidiaries	0	0
Net income (loss)	(11,666)	(39,526)
Other comprehensive income (loss)	57	(42)
Comprehensive income (loss)	(11,609)	(39,568)
Parent Company [Member]
Homebuilding
Home sale revenues	0	0
Land sale revenues	0	0
Total homebuilding revenues	0	0
Financial Services	0	0
Total revenues	0	0
Homebuilding Cost of Revenues:
Home sale cost of revenues	0	0
Land sale cost of revenues	0	0
Total cost of revenues	0	0
Financial Services expenses	65	145
Selling, general, and administrative expenses	0	10,993
Other expense (income), net	(19)	41
Interest income	(62)	0
Interest expense	217	351
Intercompany interest	109,133	10,712
Equity in (earnings) loss of unconsolidated entities	(2)	0
Income (loss) before income taxes and equity in income (loss) of subsidiaries	(109,332)	(22,242)
Income tax expense (benefit)	29,191	(707)
Income (loss) before equity in income (loss) of subsidiaries	(138,523)	(21,535)
Equity in income (loss) of subsidiaries	126,857	(17,991)
Net income (loss)	(11,666)	(39,526)
Other comprehensive income (loss)	57	(42)
Comprehensive income (loss)	(11,609)	(39,568)
Guarantor Subsidiaries [Member]
Homebuilding
Home sale revenues	813,786	782,471
Land sale revenues	38,398	1,296
Total homebuilding revenues	852,184	783,767
Financial Services	373	283
Total revenues	852,557	784,050
Homebuilding Cost of Revenues:
Home sale cost of revenues	712,166	685,030
Land sale cost of revenues	33,397	930
Total cost of revenues	745,563	685,960
Financial Services expenses	114	146
Selling, general, and administrative expenses	122,407	129,293
Other expense (income), net	6,291	4,743
Interest income	(1,113)	(1,327)
Interest expense	0	0
Intercompany interest	(105,892)	(8,644)
Equity in (earnings) loss of unconsolidated entities	(1,916)	(1,049)
Income (loss) before income taxes and equity in income (loss) of subsidiaries	87,103	(25,072)
Income tax expense (benefit)	(5,744)	(5,801)
Income (loss) before equity in income (loss) of subsidiaries	92,847	(19,271)
Equity in income (loss) of subsidiaries	34,483	1,560
Net income (loss)	127,330	(17,711)
Other comprehensive income (loss)	0	0
Comprehensive income (loss)	127,330	(17,711)
Non-Guarantor Subsidiaries [Member]
Homebuilding
Home sale revenues	0	0
Land sale revenues	0	0
Total homebuilding revenues	0	0
Financial Services	28,479	21,152
Total revenues	28,479	21,152
Homebuilding Cost of Revenues:
Home sale cost of revenues	0	0
Land sale cost of revenues	0	0
Total cost of revenues	0	0
Financial Services expenses	21,830	20,182
Selling, general, and administrative expenses	907	2,160
Other expense (income), net	347	(874)
Interest income	(24)	(110)
Interest expense	0	0
Intercompany interest	(3,241)	(2,068)
Equity in (earnings) loss of unconsolidated entities	(78)	(60)
Income (loss) before income taxes and equity in income (loss) of subsidiaries	8,738	1,922
Income tax expense (benefit)	(25,272)	642
Income (loss) before equity in income (loss) of subsidiaries	34,010	1,280
Equity in income (loss) of subsidiaries	50,131	(67,311)
Net income (loss)	84,141	(66,031)
Other comprehensive income (loss)	0	0
Comprehensive income (loss)	84,141	(66,031)
Eliminating Entries [Member]
Homebuilding
Home sale revenues	0	0
Land sale revenues	0	0
Total homebuilding revenues	0	0
Financial Services	0	0
Total revenues	0	0
Homebuilding Cost of Revenues:
Home sale cost of revenues	0	0
Land sale cost of revenues	0	0
Total cost of revenues	0	0
Financial Services expenses	0	0
Selling, general, and administrative expenses	0	0
Other expense (income), net	0	0
Interest income	0	0
Interest expense	0	0
Intercompany interest	0	0
Equity in (earnings) loss of unconsolidated entities	0	0
Income (loss) before income taxes and equity in income (loss) of subsidiaries	0	0
Income tax expense (benefit)	0	0
Income (loss) before equity in income (loss) of subsidiaries	0	0
Equity in income (loss) of subsidiaries	(211,471)	83,742
Net income (loss)	(211,471)	83,742
Other comprehensive income (loss)	0	0
Comprehensive income (loss)	$ (211,471)	$ 83,742

XML

Shareholders' Equity

3 Months Ended

Mar. 31, 2012

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ equity

At March 31, 2012, we had remaining authorization to purchase $102.3 million of common stock. There have been no repurchases under authorized stock repurchase programs since 2006.

Under our stock-based compensation plans, we accept shares as payment under certain conditions related to stock option exercises and vesting of restricted stock, generally related to the payment of minimum tax obligations. During the three months ended March 31, 2012 or 2011, we repurchased $0.8 million and $1.0 million, respectively, of shares from employees under these plans. Such repurchases are excluded from the above noted stock repurchase authorization.

XML

Income Taxes

3 Months Ended

Mar. 31, 2012

Income Tax Disclosure [Abstract]

Income Taxes

Income taxes

Our income tax expense (benefit) for the three months ended March 31, 2012 and 2011 was $(1.8) million and $(5.9) million, respectively. Due to the effects of changes in unrecognized tax benefits and the valuation allowance recorded against our deferred tax assets, our effective tax rates in 2012 and 2011 are not correlated to the amount of pretax loss. The income tax benefits for the three months ended March 31, 2012 and 2011 resulted primarily from the favorable resolution of certain federal and state income tax matters.

We had income taxes receivable of $29.7 million and $27.2 million at March 31, 2012 and December 31, 2011, respectively, which related primarily to amended federal and state income tax returns.

In accordance with ASC 740, "Income Taxes" ("ASC 740"), the Company evaluates its deferred tax assets to determine if a valuation allowance is required. At March 31, 2012 and December 31, 2011, we had net deferred tax assets of $2.5 billion. Based on our evaluation in accordance with ASC 740, we fully reserved the net deferred tax assets due to the uncertainty of realizing such deferred tax assets.  The ultimate realization of these deferred tax assets is dependent upon the generation of taxable income during future periods.  Changes in existing tax laws could also affect actual tax results and the valuation of deferred tax assets over time.  The accounting for deferred taxes is based upon an estimate of future results.  Differences between the estimated and actual results could have a material impact on our consolidated results of operations or financial position. To the extent that our results of operations improve, our deferred tax asset valuation allowance may be reduced.

As a result of our merger with Centex Corporation ("Centex") in August 2009, our ability to use certain of Centex’s pre-ownership change NOLs and built-in losses or deductions is limited by Section 382 of the Internal Revenue Code. Our Section 382 limitation is approximately $67.4 million per year for NOLs, losses realized on built-in loss assets that are sold within 60 months of the ownership change (i.e. before August 2014), and certain deductions. The limitation may result in a significant portion of Centex’s pre-ownership change NOL carryforwards and future recognized built-in losses or deductions not being available for use by the Company.

At March 31, 2012 we had $179.3 million of gross unrecognized tax benefits and $39.2 million of accrued interest and penalties. We are currently under examination by the IRS and various state taxing jurisdictions and anticipate finalizing certain of the examinations within the next twelve months. The final outcome of these examinations is not yet determinable. It is reasonably possible, within the next twelve months, that unrecognized tax benefits may decrease by up to $19.1 million, excluding interest and penalties, primarily due to expirations of certain statutes of limitations and potential settlements. The statute of limitations for our major tax jurisdictions remains open for examination for tax years 1998 to 2012.

XML

Debt

3 Months Ended

Mar. 31, 2012

Debt Disclosure [Abstract]

Debt Disclosure

Debt

Our senior notes are summarized as follows ($000’s omitted):

	March 31, 2012		December 31, 2011
5.45% unsecured senior notes due August 2012 (b)	$	96,634	$	96,795
6.25% unsecured senior notes due February 2013 (b)	62,692		62,677
5.125% unsecured senior notes due October 2013 (b)	117,522		117,197
5.25% unsecured senior notes due January 2014 (b)	255,887		255,882
5.70% unsecured senior notes due May 2014 (b)	312,613		311,900
5.20% unsecured senior notes due February 2015 (b)	207,916		207,906
5.25% unsecured senior notes due June 2015 (b)	271,557		270,551
6.50% unsecured senior notes due May 2016 (b)	469,774		469,147
7.625% unsecured senior notes due October 2017 (a)	149,400		149,373
7.875% unsecured senior notes due June 2032 (b)	299,119		299,108
6.375% unsecured senior notes due May 2033 (b)	398,436		398,418
6.00% unsecured senior notes due February 2035 (b)	299,396		299,390
7.375% unsecured senior notes due June 2046 (b)	150,000		150,000
Total senior notes – carrying value (c)	$	3,090,946	$	3,088,344
Estimated fair value	$	3,030,286	$	2,765,151

(a) Not redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries.

(b) Redeemable prior to maturity, guaranteed on a senior basis by certain wholly-owned subsidiaries.

(c) The recorded carrying value reflects the impact of various discounts and premiums that are amortized to interest cost over the respective terms of the senior notes.

Letter of credit facilities

As a cost-saving measure and to provide increased operational flexibility, we voluntarily terminated our $250.0 million unsecured revolving credit facility ("the Credit Facility") effective March 30, 2011. The Credit Facility was scheduled to expire in June 2012 and was being used solely to issue letters of credit. No borrowings were outstanding under the Credit Facility during 2011. We did not pay any penalties as a result of the termination. The termination of the Credit Facility also:

• released $250.0 million of cash required to be maintained in liquidity reserve accounts; and

• resulted in expense of $1.3 million related to the write-off of unamortized issuance costs, which is included within selling, general, and administrative expenses during the three months ended March 31, 2011.

In connection with the termination of the Credit Facility, we entered into separate cash-collateralized letter of credit agreements with a number of financial institutions. These agreements provide capacity to issue letters of credit totaling up to $190.0 million, the majority of which is uncommitted. Letters of credit totaling $71.3 million and $83.2 million were outstanding under these agreements at March 31, 2012 and December 31, 2011, respectively. Under these agreements, we are required to maintain deposits with these financial institutions in amounts approximating the letters of credit outstanding. Such deposits are included in restricted cash.

We also maintain an unsecured letter of credit facility with a bank that expires in June 2014. This facility permits the issuance of up to $200.0 million of letters of credit for general corporate purposes in support of any wholly-owned subsidiary. At March 31, 2012 and December 31, 2011, $148.0 million and $152.7 million, respectively, of letters of credit were outstanding under this facility.

Financial Services

Pulte Mortgage provides mortgage financing for many of our home closings utilizing its own funds and funds available pursuant to a repurchase agreement with the Company. Pulte Mortgage uses these resources to finance its lending activities until the mortgage loans are sold to third party investors, generally within 30 days.

XML

Basis Of Presentation And Significant Accounting Policies (Schedule Of The Company's Interests In Land Option Agreements) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Land under option agreement [Line Items]
Deposits and pre-acquisition costs	$ 56,355	$ 57,047
Remaining Purchase Price	699,414	697,994
Land, not owned, under option agreements	26,121	24,905
Consolidated VIE [Member]
Land under option agreement [Line Items]
Deposits and pre-acquisition costs	3,208	2,781
Remaining Purchase Price	12,193	5,957
Land, not owned, under option agreements	4,461	3,837
Unconsolidated VIE [Member]
Land under option agreement [Line Items]
Deposits and pre-acquisition costs	21,121	21,180
Remaining Purchase Price	231,010	240,958
Land, not owned, under option agreements	0	0
Other Land Option Agreements Member
Land under option agreement [Line Items]
Deposits and pre-acquisition costs	32,026	33,086
Remaining Purchase Price	456,211	451,079
Land, not owned, under option agreements	$ 21,660	$ 21,068

XML

Income Taxes (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Income Tax Contingency [Line Items]
Income tax expense (benefit)	$ (1,825,000)	$ (5,866,000)
Income taxes receivable	29,673,000		27,154,000
Net deferred tax assets	2,500,000,000		2,500,000,000
Valuation allowance	2,500,000,000		2,500,000,000
Section 382 limitations on use of pre-ownership Centex losses per year	67,400,000
Period in which to recognize Section 382 limitations on use of pre-ownership Centex losses, months	60
Gross federal NOL carryforward	179,300,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	39,200,000
Possible decrease in unrecognized tax benefits	$ 19,100,000
Minimum [Member]
Income Tax Contingency [Line Items]
Income Tax Examination, Year(s) under Examination	1998
Maximum [Member]
Income Tax Contingency [Line Items]
Income Tax Examination, Year(s) under Examination	2012

XML

Commitments And Contingencies (Policy)

3 Months Ended

Mar. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Legal Reserves Policy

We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss is reasonably estimable. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. In view of the inherent difficulty of predicting the outcome of these legal and regulatory matters, we generally cannot predict the ultimate resolution of the pending matters, the related timing, or the eventual loss. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. However, to the extent the liability arising from the ultimate resolution of any matter exceeds the estimates reflected in the recorded reserves relating to such matter, we could incur additional charges that could be significant.

XML

Investments In Unconsolidated Entities (Tables)

3 Months Ended

Mar. 31, 2012

Equity Method Investments and Joint Ventures [Abstract]

Summary of joint ventures

A summary of our joint ventures is presented below ($000’s omitted):

	March 31, 2012		December 31, 2011
Investments in joint ventures with debt non-recourse to PulteGroup	$	11,496	$	11,453
Investments in other active joint ventures	22,650		24,535
Total investments in unconsolidated entities	$	34,146	$	35,988
Total joint venture debt	$	11,022	$	11,107
PulteGroup proportionate share of joint venture debt:
Joint venture debt with limited recourse guaranties	$	1,156	$	1,202
Joint venture debt non-recourse to PulteGroup	2,061		2,009
PulteGroup's total proportionate share of joint venture debt	$	3,217	$	3,211

XML

Investments In Unconsolidated Entities (Summary Schedule Of Joint Ventures) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Equity Method Investments and Joint Ventures [Abstract]
Investments in joint ventures with debt non-recourse to Company	$ 11,496	$ 11,453
Investments in other active joint ventures	22,650	24,535
Total investments in unconsolidated entities	34,146	35,988
Total joint venture debt	11,022	11,107
Company proportionate share of joint venture debt:
Joint venture debt with limited recourse guaranties	1,156	1,202
Joint venture debt non-recourse to Company	2,061	2,009
Company's total proportionate share of joint venture debt	$ 3,217	$ 3,211

XML

Inventory And Land Held For Sale Inventory And Land Held For Sale (Fair Value Unobservable Inputs) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012
Minimum [Member]
Fair value inputs, assets, quantitative information [Line Items]
Average selling price ($000s)	$ 198
Sales pace per quarter (units)	4
Discount rate	12.00%
Maximum [Member]
Fair value inputs, assets, quantitative information [Line Items]
Average selling price ($000s)	$ 420
Sales pace per quarter (units)	7
Discount rate	16.00%

XML

Consolidated Statements of Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Net income (loss)	$ (11,666)	$ (39,526)
Other Comprehensive Income (Loss), Net of Tax
Change in fair value of derivatives	57	9
Foreign currency translation adjustments	0	(51)
Other comprehensive income (loss)	57	(42)
Comprehensive income (loss)	$ (11,609)	$ (39,568)

XML

Inventory And Land Held For Sale

3 Months Ended

Mar. 31, 2012

Inventory Disclosure [Abstract]

Inventory Disclosure

Inventory and land held for sale

Major components of inventory were as follows ($000’s omitted):

	March 31, 2012		December 31, 2011
Homes under construction	$	1,182,038	$	1,210,717
Land under development	2,674,484		2,610,501
Land held for future development	727,894		815,250
	$	4,584,416	$	4,636,468

We capitalize interest cost into inventory during the active development and construction of our communities. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is recorded based on the cyclical timing of home closings. Interest expensed to Homebuilding cost of revenues for the three months ended March 31, 2012 and 2011 included $0.8 million and $0.1 million, respectively, of capitalized interest related to inventory impairments. We capitalized all Homebuilding interest costs into inventory because the level of our active inventory exceeded our debt levels.

Information related to interest capitalized into inventory is as follows ($000’s omitted):

	Three Months Ended
	March 31,
	2012			2011
Interest in inventory, beginning of period	$	355,068		$	323,379
Interest capitalized	51,323			56,191
Interest expensed	(47,186		)	(34,816		)
Interest in inventory, end of period	$	359,205		$	344,754
Interest incurred*	$	51,323		$	56,191

* Homebuilding interest incurred includes interest on senior debt and certain other financing arrangements.

Land valuation adjustments and write-offs

Impairment of inventory

In accordance with ASC 360, “Property, Plant, and Equipment” (“ASC 360”), we record valuation adjustments on land inventory and related communities under development when events and circumstances indicate that they may be impaired and when the cash flows estimated to be generated by those assets are less than their carrying amounts. Such indicators include gross margin or sales paces significantly below expectations, construction costs or land development costs significantly in excess of budgeted amounts, significant delays or changes in the planned development for the community, and other known qualitative factors. For communities that are not yet active, a significant additional consideration includes an evaluation of the probability, timing, and cost of obtaining necessary approvals from local municipalities and any potential concessions that may be necessary in order to obtain such approvals. We also consider potential changes to the product offerings in a community and any alternative strategies for the land, such as the sale of the land either in whole or in parcels. Communities that demonstrate potential impairment indicators are tested for impairment. We compare the expected undiscounted cash flows for these communities to their carrying value. For those communities whose carrying values exceed the expected undiscounted cash flows, we calculate the fair value of the community in accordance with ASC 360. Impairment charges are required to be recorded if the fair value of the community's inventory is less than its carrying value.

We determine the fair value of a community's inventory using a combination of market comparable land transactions, where available, and discounted cash flow models. These estimated cash flows are significantly impacted by estimates related to expected average selling prices, expected sales paces, expected land development and construction timelines, and anticipated land development, construction, and overhead costs. The assumptions used in the discounted cash flow models are specific to each community tested for impairment and typically do not assume improvements in market conditions in the near term. Due to uncertainties in the estimation process, the significant volatility in demand for new housing, and the long life cycles of many communities, actual results could differ significantly from such estimates. Our determination of fair value also requires discounting the estimated cash flows at a rate commensurate with the inherent risks associated with each of the assets and related estimated cash flow streams. The discount rate used in determining each community's fair value depends on the stage of development of the community and other specific factors that increase or decrease the inherent risks associated with the community's cash flow streams. For example, communities that are entitled and near completion will generally be assigned a lower discount rate than communities that are not entitled and consist of multiple phases spanning several years of development and construction activity.

During the three months ended March 31, 2012, we reviewed each of our land positions for potential impairment indicators and performed detailed impairment calculations for approximately 10 communities. As discussed above, determining the fair value of a community's inventory involves a number of variables, many of which are interrelated. The table below summarizes certain quantitative unobservable inputs utilized in determining the fair value of impaired communities at March 31, 2012:

Unobservable input	Range
Average selling price ($000s)	$198	-	$420
Sales pace per quarter (units)	4	-	7
Discount rate	12%	-	16%

The table below provides, as of the date indicated, the number of communities for which we recognized impairment charges, the fair value of those communities at such date (net of impairment charges), and the amount of impairment charges recognized ($000’s omitted):

	2012					2011
Quarter Ended	Number of Communities Impaired	Fair Value of Communities Impaired, Net of Impairment Charges		Impairment Charges		Number of Communities Impaired	Fair Value of Communities Impaired, Net of Impairment Charges		Impairment Charges
March 31	4	$	7,468	$	4,514	1	$	483	$	103

We recorded these valuation adjustments within Homebuilding home sale cost of revenues.

Our evaluations for impairments recorded to date were based on our best estimates of the future cash flows for our communities. However, if conditions in the homebuilding industry or our local markets worsen in the future, if the current difficult market conditions extend beyond our expectations, or if our strategy related to certain communities changes, we may be required to evaluate our assets for further impairments or write-downs, which could result in future charges that might be significant.

Net realizable value adjustments – land held for sale

We acquire land primarily for the construction of homes for sale to customers but may periodically elect to sell select parcels of land to third parties for commercial or other development. Additionally, we may determine that certain land assets no longer fit into our strategic operating plans. Assuming the criteria in ASC 360 are met, we classify such land as land held for sale.

Land held for sale is valued at the lower of carrying value or net realizable value (fair value less costs to sell). In determining the net realizable value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. During the three months ended March 31, 2012, we recognized net realizable value adjustments of $0.6 million. There were no net realizable value adjustments during the three months ended March 31, 2011. We record these net realizable value adjustments within Homebuilding land sale cost of revenues.

Land held for sale was as follows ($000’s omitted):

	March 31, 2012			December 31, 2011
Land held for sale, gross	$	184,250		$	190,099
Net realizable value reserves	(48,018		)	(54,792		)
Land held for sale, net	$	136,232		$	135,307

Write-off of deposits and pre-acquisition costs

We write off deposits and pre-acquisition costs related to land option contracts when it becomes probable that we will not go forward with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the willingness of land sellers to modify terms of the related purchase agreements, the timing of required land takedowns, the availability and best use of necessary incremental capital, and other factors. We wrote off (net of recoveries) deposits and pre-acquisition costs in the amount of $0.7 million and $0.6 million during the three months ended March 31, 2012 and 2011, respectively. We record these write-offs of deposits and pre-acquisition costs within other expense (income), net.

XML

Commitments And Contingencies (Changes in Self-insurance Liability) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Commitments and Contingencies Disclosure [Abstract]
Balance, beginning of period	$ 741,383	$ 785,562
Reserves provided	12,978	14,924
Payments	(14,337)	(25,734)
Balance, end of period	$ 740,024	$ 774,752

XML

Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2012

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]

Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted):

Financial Instrument	Fair Value Hierarchy	Fair Value
		March 31, 2012			December 31, 2011
Measured at fair value on a recurring basis:
Residential mortgage loans available-for-sale	Level 2	$	184,164		$	258,075
Interest rate lock commitments	Level 2	4,704			3,551
Forward contracts	Level 2	481			(3,470		)
Whole loan commitments	Level 2	(46		)	11
Measured at fair value on a non-recurring basis:
Loans held for investment	Level 2	$	1,896		$	2,324
House and land inventory	Level 3	7,468			23,766
Disclosed at fair value:
Cash and equivalents (including restricted cash)	Level 1	$	1,301,604		$	1,184,931
Senior notes	Level 2	3,030,286			2,765,151

XML

Inventory And Land Held for Sale (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Inventory Disclosure [Abstract]
Capitalized interest related to inventory impairments expensed to cost of revenues	$ 800,000	$ 100,000
Number of Communities Assessed for Impairment	10
Net realizable value adjustments - land held for sale	643,000	0
Write-off of deposits and pre-acquisition costs	$ 739,000	$ 623,000

XML

Inventory And Land Held For Sale (Policy)

3 Months Ended

Mar. 31, 2012

Inventory Disclosure [Abstract]

Inventory, Interest Capitalization Policy

We capitalize interest cost into inventory during the active development and construction of our communities. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is recorded based on the cyclical timing of home closings.

Inventory Impairment Policy

Impairment of inventory

In accordance with ASC 360, “Property, Plant, and Equipment” (“ASC 360”), we record valuation adjustments on land inventory and related communities under development when events and circumstances indicate that they may be impaired and when the cash flows estimated to be generated by those assets are less than their carrying amounts. Such indicators include gross margin or sales paces significantly below expectations, construction costs or land development costs significantly in excess of budgeted amounts, significant delays or changes in the planned development for the community, and other known qualitative factors. For communities that are not yet active, a significant additional consideration includes an evaluation of the probability, timing, and cost of obtaining necessary approvals from local municipalities and any potential concessions that may be necessary in order to obtain such approvals. We also consider potential changes to the product offerings in a community and any alternative strategies for the land, such as the sale of the land either in whole or in parcels. Communities that demonstrate potential impairment indicators are tested for impairment. We compare the expected undiscounted cash flows for these communities to their carrying value. For those communities whose carrying values exceed the expected undiscounted cash flows, we calculate the fair value of the community in accordance with ASC 360. Impairment charges are required to be recorded if the fair value of the community's inventory is less than its carrying value.

We determine the fair value of a community's inventory using a combination of market comparable land transactions, where available, and discounted cash flow models. These estimated cash flows are significantly impacted by estimates related to expected average selling prices, expected sales paces, expected land development and construction timelines, and anticipated land development, construction, and overhead costs. The assumptions used in the discounted cash flow models are specific to each community tested for impairment and typically do not assume improvements in market conditions in the near term. Due to uncertainties in the estimation process, the significant volatility in demand for new housing, and the long life cycles of many communities, actual results could differ significantly from such estimates. Our determination of fair value also requires discounting the estimated cash flows at a rate commensurate with the inherent risks associated with each of the assets and related estimated cash flow streams. The discount rate used in determining each community's fair value depends on the stage of development of the community and other specific factors that increase or decrease the inherent risks associated with the community's cash flow streams. For example, communities that are entitled and near completion will generally be assigned a lower discount rate than communities that are not entitled and consist of multiple phases spanning several years of development and construction activity.

Impairment of Land Held for Sale Policy

Land held for sale is valued at the lower of carrying value or net realizable value (fair value less costs to sell). In determining the net realizable value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. During the three months ended March 31, 2012, we recognized net realizable value adjustments of $0.6 million. There were no net realizable value adjustments during the three months ended March 31, 2011. We record these net realizable value adjustments within Homebuilding land sale cost of revenues.

Write-Off of Deposits and Pre-Acquisition Costs

We write off deposits and pre-acquisition costs related to land option contracts when it becomes probable that we will not go forward with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the willingness of land sellers to modify terms of the related purchase agreements, the timing of required land takedowns, the availability and best use of necessary incremental capital, and other factors. We wrote off (net of recoveries) deposits and pre-acquisition costs in the amount of $0.7 million and $0.6 million during the three months ended March 31, 2012 and 2011, respectively. We record these write-offs of deposits and pre-acquisition costs within other expense (income), net.