Supplemental Guarantor Information (Tables)

6 Months Ended

Jun. 30, 2012

Supplemental Guarantor Information

CONSOLIDATING STATEMENTS OF EARNINGS

CONSOLIDATING STATEMENTS OF EARNINGS

	THREE MONTHS ENDED JUNE 30, 2012
							NON-
				GUARANTOR			GUARANTOR		CONSOLIDATING			CONSOLIDATED
(in thousands)	TRG, INC.			SUBSIDIARIES			SUBSIDIARIES		ELIMINATIONS			TOTAL
REVENUES	$	156,304		$	128,289		$	9,176	$	-		$	293,769
EXPENSES	153,859			127,958			6,232		-			288,049
OTHER INCOME	519			-			-		-			519
Income from continuing operations before taxes	2,964			331			2,944		-			6,239
Tax expense (benefit)	88			(110		)	212		-			190
Equity in net earnings of subsidiaries	3,173			-			-		(3,173		)	-
Net income from continuing operations	6,049			441			2,732		(3,173		)	6,049
Income from discontinued operations, net of taxes	223			135			-		(135		)	223
NET INCOME	$	6,272		$	576		$	2,732	$	(3,308	)	$	6,272
(in thousands)	SIX MONTHS ENDED JUNE 30, 2012
REVENUES	$	267,211		$	226,917		$	15,510	$	-		$	509,638
EXPENSES	266,692			228,772			11,921		-			507,385
OTHER INCOME	965			-			-		-			965
Income (loss) from continuing operations before taxes	1,484			(1,855		)	3,589		-			3,218
Tax expense (benefit)	88			(110		)	212		-			190
Equity in net earnings of subsidiaries	1,632			-			-		(1,632		)	-
Net income (loss) from continuing operations	3,028			(1,745		)	3,377		(1,632		)	3,028
Loss from discontinued operations, net of taxes	(1,864		)	(841		)	-		841			(1,864		)
NET INCOME (LOSS)	$	1,164		$	(2,586	)	$	3,377	$	(791	)	$	1,164

CONSOLIDATING STATEMENTS OF EARNINGS

	THREE MONTHS ENDED JUNE 30, 2011
							NON-
				GUARANTOR			GUARANTOR		CONSOLIDATING			CONSOLIDATED
(in thousands)	TRG, INC.			SUBSIDIARIES			SUBSIDIARIES		ELIMINATIONS			TOTAL
REVENUES	$	104,935		$	99,990		$	6,923	$	-		$	211,848
EXPENSES	117,288			99,947			4,859		-			222,094
OTHER INCOME	445			-			-		-			445
(Loss) income from continuing operations before taxes	(11,908		)	43			2,064		-			(9,801		)
Tax (benefit) expense	(343		)	235			108		-			-
Equity in net earnings of subsidiaries	1,764			-			-		(1,764		)	-
Net (loss) income from continuing operations	(9,801		)	(192		)	1,956		(1,764		)	(9,801		)
Loss from discontinued operations, net of taxes	(912		)	(427		)	-		427			(912		)
NET (LOSS) INCOME	$	(10,713	)	$	(619	)	$	1,956	$	(1,337	)	$	(10,713	)
(in thousands)	SIX MONTHS ENDED JUNE 30, 2011
REVENUES	$	195,309		$	171,044		$	13,167	$	-		$	379,520
EXPENSES	224,191			176,826			9,894		-			410,911
OTHER INCOME	1,753			-			-		-			1,753
(Loss) income from continuing operations before taxes	(27,129		)	(5,782		)	3,273		-			(29,638		)
Tax (benefit) expense	(2,072		)	(566		)	240		-			(2,398		)
Equity in net loss of subsidiaries	(2,183		)	-			-		2,183			-
Net (loss) income from continuing operations	(27,240		)	(5,216		)	3,033		2,183			(27,240		)
Loss from discontinued operations, net of taxes	(3,009		)	(1,926		)	-		1,926			(3,009		)
NET (LOSS) INCOME	$	(30,249	)	$	(7,142	)	$	3,033	$	4,109		$	(30,249	)

CONSOLIDATING BALANCE SHEETS

CONSOLIDATING BALANCE SHEETS

										JUNE 30, 2012
					NON-
			GUARANTOR		GUARANTOR		CONSOLIDATING			CONSOLIDATED
(in thousands)	TRG, INC.		SUBSIDIARIES		SUBSIDIARIES		ELIMINATIONS			TOTAL
ASSETS
Cash and cash equivalents	$	19,900	$	314,806	$	20,506	$	-		$	355,212
Marketable securities and restricted cash	349,007		-		28,691		-			377,698
Consolidated inventory owned	535,381		303,960		-		-			839,341
Consolidated inventory not owned	17,042		-		30,260		-			47,302
Total housing inventories	552,423		303,960		30,260		-			886,643
Investment in subsidiaries/ intercompany receivables	647,199		-		-		(647,199		)	-
Other assets	66,001		32,824		74,919		-			173,744
Assets of discontinued operations	3,942		10,682		-		-			14,624
TOTAL ASSETS	1,638,472		662,272		154,376		(647,199		)	1,807,921
LIABILITIES
Accounts payable and other accrued liabilities	134,589		55,772		31,896		-			222,257
Financial services credit facility	-		-		50,271		-			50,271
Debt	1,047,856		-		-		-			1,047,856
Intercompany payables	-		407,196		13,489		(420,685		)	-
Liabilities of discontinued operations	613		1,250		-		-			1,863
TOTAL LIABILITIES	1,183,058		464,218		95,656		(420,685		)	1,322,247
EQUITY
STOCKHOLDERS’ EQUITY	455,414		198,054		28,460		(226,514		)	455,414
NONCONTROLLING INTEREST	-		-		30,260		-			30,260
TOTAL LIABILITIES AND EQUITY	$	1,638,472	$	662,272	$	154,376	$	(647,199	)	$	1,807,921
(in thousands)							DECEMBER 31, 2011
ASSETS
Cash and cash equivalents	$	25,403	$	117,072	$	16,888	$	-		$	159,363
Marketable securities and restricted cash	370,975		-		32,840		-			403,815
Consolidated inventory owned	470,269		273,791		-		-			744,060
Consolidated inventory not owned	17,177		-		34,223		-			51,400
Total housing inventories	487,446		273,791		34,223		-			795,460
Investment in subsidiaries/ intercompany receivables	456,953		-		-		(456,953		)	-
Other assets	56,758		34,045		94,379		-			185,182
Assets of discontinued operations	8,853		26,471		-		-			35,324
TOTAL ASSETS	1,406,388		451,379		178,330		(456,953		)	1,579,144
LIABILITIES
Accounts payable and other accrued liabilities	131,879		48,750		34,628		-			215,257
Financial services credit facility	-		-		49,933		-			49,933
Debt	822,639		1,188		-		-			823,827
Intercompany payables	-		196,767		29,754		(226,521		)	-
Liabilities of discontinued operations	2,183		4,034		-		-			6,217
TOTAL LIABILITIES	956,701		250,739		114,315		(226,521		)	1,095,234
EQUITY
STOCKHOLDERS’ EQUITY	449,687		200,640		29,792		(230,432		)	449,687
NONCONTROLLING INTEREST	-		-		34,223		-			34,223
TOTAL LIABILITIES AND EQUITY	$	1,406,388	$	451,379	$	178,330	$	(456,953	)	$	1,579,144

CONSOLIDATING STATEMENTS OF CASH FLOWS

CONSOLIDATING STATEMENT OF CASH FLOWS

							SIX MONTHS ENDED JUNE 30, 2012
				GUARANTOR			NON-GUARANTOR			CONSOLIDATING			CONSOLIDATED
(in thousands)	TRG, INC.			SUBSIDIARIES			SUBSIDIARIES			ELIMINATIONS			TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) from continuing operations	$	3,028		$	(1,745	)	$	3,377		$	(1,632	)	$	3,028
Adjustments to reconcile net income (loss) from continuing operations to net cash (used for) provided by operating activities	8,687			4,418			268			-			13,373
Changes in assets and liabilities	(70,561		)	(13,597		)	11,786			1,632			(70,740		)
Other operating activities, net	(784		)	-			-			-			(784		)
Net cash (used for) provided by operating activities from continuing operations	(59,630		)	(10,924		)	15,431			-			(55,123		)
CASH FLOWS FROM INVESTING ACTIVITIES
Return of investment in unconsolidated joint ventures, net	539			1,332			-			-			1,871
Additions to property, plant and equipment	(3,503		)	(1,915		)	(16		)	-			(5,434		)
Purchases of marketable securities, available-for-sale	(468,012		)	-			(1,678		)	-			(469,690		)
Proceeds from sales and maturities of marketable securities, available-for-sale	506,783			-			1,904			-			508,687
Other investing activities, net	-			-			(10		)	-			(10		)
Net cash provided by (used for) investing activities from continuing operations	35,807			(583		)	200			-			35,424
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in debt	224,909			(1,188		)	-			-			223,721
Increase in borrowings against revolving credit facilities, net	-			-			338			-			338
Common stock dividends and stock-based compensation	1,750			-			-			-			1,750
(Increase) decrease in restricted cash	(14,175		)	-			3,914			-			(10,261		)
Intercompany balances	(194,164		)	210,429			(16,265		)	-			-
Net cash provided by (used for) financing activities from continuing operations	18,320			209,241			(12,013		)	-			215,548
Net (decrease) increase in cash and cash equivalents from continuing operations	(5,503		)	197,734			3,618			-			195,849
Cash flows from operating activities—discontinued operations	436			(73		)	-			-			363
Cash flows from investing activities—discontinued operations	6			73			-			-			79
Cash flows from financing activities—discontinued operations	-			-			-			-			-
Cash and cash equivalents at beginning of year	25,430			117,101			16,888			-			159,419
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	20,369		$	314,835		$	20,506		$	-		$	355,710

CONSOLIDATING STATEMENT OF CASH FLOWS

	SIX MONTHS ENDED JUNE 30, 2011
				GUARANTOR			NON-GUARANTOR			CONSOLIDATING			CONSOLIDATED
(in thousands)	TRG, INC.			SUBSIDIARIES			SUBSIDIARIES			ELIMINATIONS			TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income from continuing operations	$	(27,240	)	$	(5,216	)	$	3,033		$	2,183		$	(27,240	)
Adjustments to reconcile net (loss) income from continuing operations to net cash used for operating activities	31,864			3,882			324			-			36,070
Changes in assets and liabilities	(48,919		)	(46,436		)	(6,278		)	(2,183		)	(103,816		)
Other operating activities, net	(158		)	(213		)	-			-			(371		)
Net cash used for operating activities from continuing operations	(44,453		)	(47,983		)	(2,921		)	-			(95,357		)
CASH FLOWS FROM INVESTING ACTIVITIES
(Contributions to) return of investment in unconsolidated joint ventures, net	(453		)	1,515			-			-			1,062
Additions to property, plant and equipment	(3,483		)	(2,057		)	(55		)	-			(5,595		)
Purchases of marketable securities, available-for-sale	(697,208		)	-			(2,927		)	-			(700,135		)
Proceeds from sales and maturities of marketable securities, available-for-sale	778,063			-			2,531			-			780,594
Other investing activities, net	-			-			30			-			30
Net cash provided by (used for) investing activities from continuing operations	76,919			(542		)	(421		)	-			75,956
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in debt	(28,160		)	(283		)	-			-			(28,443		)
Common stock dividends and stock-based compensation	829			-			-			-			829
Decrease (increase) in restricted cash	3,197			-			(506		)	-			2,691
Intercompany balances	(35,068		)	36,811			(1,743		)	-			-
Net cash (used for) provided by financing activities from continuing operations	(59,202		)	36,528			(2,249		)	-			(24,923		)
Net decrease in cash and cash equivalents from continuing operations	(26,736		)	(11,997		)	(5,591		)	-			(44,324		)
Cash flows from operating activities—discontinued operations	191			150			-			-			341
Cash flows from investing activities—discontinued operations	(166		)	(150		)	-			-			(316		)
Cash flows from financing activities—discontinued operations	-			-			-			-			-
Cash and cash equivalents at beginning of year	26,711			177,191			22,745			-			226,647
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	-		$	165,194		$	17,154		$	-		$	182,348

CONSOLIDATING STATEMENTS OF OTHER COMPREHENSIVE INCOME

CONSOLIDATING STATEMENTS OF OTHER COMPREHENSIVE INCOME
	THREE MONTHS ENDED JUNE 30, 2012
				GUARANTOR			NON-GUARANTOR		CONSOLIDATING			CONSOLIDATED
(in thousands)	TRG, INC.			SUBSIDIARIES			SUBSIDIARIES		ELIMINATIONS			TOTAL
COMPREHENSIVE INCOME	$	6,145		$	576		$	2,732	$	(3,308	)	$	6,145
	THREE MONTHS ENDED JUNE 30, 2011
COMPREHENSIVE (LOSS) INCOME	$	(10,813	)	$	(619	)	$	1,956	$	(1,337	)	$	(10,813	)
	SIX MONTHS ENDED JUNE 30, 2012
COMPREHENSIVE INCOME (LOSS)	$	1,711		$	(2,586	)	$	3,377	$	(791	)	$	1,711
	SIX MONTHS ENDED JUNE 30, 2011
COMPREHENSIVE (LOSS) INCOME	$	(30,632	)	$	(7,142	)	$	3,033	$	4,109		$	(30,632	)