20.	S upplemental Guarantor Information

Certain of our

100%

owned direct and indirect subsidiaries guarantee our outstanding senior notes payable (please see Note

"Senior Notes Payable"). Presented below are the condensed consolidated financial statements for our guarantor subsidiaries and non-guarantor subsidiaries.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	Three Months Ended June 30, 2017
	CalAtlantic Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated CalAtlantic Group, Inc.
	(Dollars in thousands)
Homebuilding:
Revenues	$	731,311		$	662,781		$	227,022		$	―		$	1,621,114
Cost of sales		(592,162	)		(531,235	)		(173,859	)		―			(1,297,256	)
Gross margin		139,149			131,546			53,163			―			323,858
Selling, general and administrative expenses		(70,729	)		(83,694	)		(19,574	)		―			(173,997	)
Income (loss) from unconsolidated joint ventures		351			165			(70	)		―			446
Equity income of subsidiaries		58,400			―			―			(58,400	)		―
Interest income (expense), net		720			(525	)		(195	)		―			―
Other income (expense)		(3,911	)		(228	)		1,464			―			(2,675	)
Homebuilding pretax income		123,980			47,264			34,788			(58,400	)		147,632
Financial Services:
Financial services pretax income		―			―			8,616			―			8,616
Income before taxes		123,980			47,264			43,404			(58,400	)		156,248
Provision for income taxes		(24,986	)		(21,900	)		(10,368	)		―			(57,254	)
Net income	$	98,994		$	25,364		$	33,036		$	(58,400	)	$	98,994

	Three Months Ended June 30, 2016
	CalAtlantic Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated CalAtlantic Group, Inc.
	(Dollars in thousands)
Homebuilding:
Revenues	$	648,800		$	676,049		$	253,513		$	―		$	1,578,362
Cost of sales		(516,882	)		(535,832	)		(184,291	)		―			(1,237,005	)
Gross margin		131,918			140,217			69,222			―			341,357
Selling, general and administrative expenses		(71,235	)		(76,915	)		(17,544	)		―			(165,694	)
Income (loss) from unconsolidated joint ventures		57			256			(90	)		―			223
Equity income of subsidiaries		79,867			―			―			(79,867	)		―
Interest income (expense), net		1,273			(934	)		(339	)		―			―
Other income (expense)		(3,668	)		(668	)		(79	)		―			(4,415	)
Homebuilding pretax income		138,212			61,956			51,170			(79,867	)		171,471
Financial Services:
Financial services pretax income		―			―			8,146			―			8,146
Income before taxes		138,212			61,956			59,316			(79,867	)		179,617
Provision for income taxes		(25,452	)		(26,074	)		(15,331	)		―			(66,857	)
Net income	$	112,760		$	35,882		$	43,985		$	(79,867	)	$	112,760

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	Six Months Ended June 30, 2017
	CalAtlantic Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated CalAtlantic Group, Inc.
	(Dollars in thousands)
Homebuilding:
Revenues	$	1,308,579		$	1,203,305		$	446,929		$	―		$	2,958,813
Cost of sales		(1,063,459	)		(962,787	)		(333,865	)		―			(2,360,111	)
Gross margin		245,120			240,518			113,064			―			598,702
Selling, general and administrative expenses		(135,437	)		(157,085	)		(37,751	)		―			(330,273	)
Income (loss) from unconsolidated joint ventures		1,025			298			3,011			―			4,334
Equity income of subsidiaries		115,997			―			―			(115,997	)		―
Interest income (expense), net		1,594			(1,205	)		(389	)		―			―
Other income (expense)		(5,898	)		(256	)		3,310			―			(2,844	)
Homebuilding pretax income		222,401			82,270			81,245			(115,997	)		269,919
Financial Services:
Financial services pretax income		―			―			16,197			―			16,197
Income before taxes		222,401			82,270			97,442			(115,997	)		286,116
Provision for income taxes		(40,787	)		(38,623	)		(25,092	)		―			(104,502	)
Net income	$	181,614		$	43,647		$	72,350		$	(115,997	)	$	181,614

	Six Months Ended June 30, 2016
	CalAtlantic Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated CalAtlantic Group, Inc.
	(Dollars in thousands)
Homebuilding:
Revenues	$	1,110,538		$	1,210,503		$	443,004		$	―		$	2,764,045
Cost of sales		(889,723	)		(965,834	)		(319,943	)		―			(2,175,500	)
Gross margin		220,815			244,669			123,061			―			588,545
Selling, general and administrative expenses		(126,286	)		(144,761	)		(31,348	)		―			(302,395	)
Income (loss) from unconsolidated joint ventures		746			400			266			―			1,412
Equity income of subsidiaries		134,034			―			―			(134,034	)		―
Interest income (expense), net		2,610			(1,899	)		(711	)		―			―
Other income (expense)		(7,283	)		(479	)		(61	)		―			(7,823	)
Homebuilding pretax income		224,636			97,930			91,207			(134,034	)		279,739
Financial Services:
Financial services pretax income		―			―			15,082			―			15,082
Income before taxes		224,636			97,930			106,289			(134,034	)		294,821
Provision for income taxes		(39,215	)		(43,548	)		(26,637	)		―			(109,400	)
Net income	$	185,421		$	54,382		$	79,652		$	(134,034	)	$	185,421

CONDENSED CONSOLIDATING BALANCE SHEET

	June 30, 2017
	CalAtlantic Group, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated CalAtlantic Group, Inc.
	(Dollars in thousands)
ASSETS
Homebuilding:
Cash and equivalents	$	41,081	$	31,168	$	95,584	$	―		$	167,833
Restricted cash		―		―		32,367		―			32,367
Intercompany receivables		2,118,245		―		320,924		(2,439,169	)		―
Inventories:
Owned		2,970,751		2,278,861		1,405,378		―			6,654,990
Not owned		42,190		32,927		11,501		―			86,618
Investments in unconsolidated joint ventures		4,889		4,228		116,651		―			125,768
Investments in subsidiaries		2,069,205		―		―		(2,069,205	)		―
Deferred income taxes, net		319,114		―		―		(6,643	)		312,471
Goodwill		970,185		―		15,000		―			985,185
Other assets		171,854		41,231		20,700		―			233,785
Total Homebuilding Assets		8,707,514		2,388,415		2,018,105		(4,515,017	)		8,599,017
Financial Services:
Cash and equivalents		―		―		47,861		―			47,861
Restricted cash		―		―		21,375		―			21,375
Mortgage loans held for sale, net		―		―		155,180		―			155,180
Mortgage loans held for investment, net		―		―		25,613		―			25,613
Other assets		―		―		19,551		(1,801	)		17,750
Total Financial Services Assets		―		―		269,580		(1,801	)		267,779
Total Assets	$	8,707,514	$	2,388,415	$	2,287,685	$	(4,516,818	)	$	8,866,796
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	67,733	$	58,565	$	20,085	$	―		$	146,383
Accrued liabilities and intercompany payables		323,820		1,276,865		1,068,572		(2,126,689	)		542,568
Secured project debt and other notes payable		345,023		―		2,942		(320,924	)		27,041
Senior notes payable		3,735,232		―		―		―			3,735,232
Total Homebuilding Liabilities		4,471,808		1,335,430		1,091,599		(2,447,613	)		4,451,224
Financial Services:
Accounts payable and other liabilities		―		―		19,374		―			19,374
Mortgage credit facility		―		―		149,828		―			149,828
Total Financial Services Liabilities		―		―		169,202		―			169,202
Total Liabilities		4,471,808		1,335,430		1,260,801		(2,447,613	)		4,620,426

Equity:
Total Stockholders' Equity		4,235,706		1,052,985		1,016,220		(2,069,205	)		4,235,706
Noncontrolling interest		―		―		10,664		―			10,664
Total Equity		4,235,706		1,052,985		1,026,884		(2,069,205	)		4,246,370
Total Liabilities and Equity	$	8,707,514	$	2,388,415	$	2,287,685	$	(4, 516,818	)	$	8,866,796

CONDENSED CONSOLIDATING BALANCE SHEET

	December 31, 2016
	CalAtlantic Group, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated CalAtlantic Group, Inc.
	(Dollars in thousands)
ASSETS
Homebuilding:
Cash and equivalents	$	105,261	$	38,211	$	47,614	$	―		$	191,086
Restricted cash		―		―		28,321		―			28,321
Intercompany receivables		2,045,773		―		334,926		(2,380,699	)		―
Inventories:
Owned		2,825,234		2,277,840		1,335,718		―			6,438,792
Not owned		30,953		32,596		2,718		―			66,267
Investments in unconsolidated joint ventures		4,469		4,923		117,735		―			127,127
Investments in subsidiaries		1,954,418		―		―		(1,954,418	)		―
Deferred income taxes, net		337,021		―		―		(6,643	)		330,378
Goodwill		970,185		―		―		―			970,185
Other assets		165,214		36,725		2,550		―			204,489
Total Homebuilding Assets		8,438,528		2,390,295		1,869,582		(4,341,760	)		8,356,645
Financial Services:
Cash and equivalents		―		―		17,041		―			17,041
Restricted cash		―		―		21,710		―			21,710
Mortgage loans held for sale, net		―		―		262,058		―			262,058
Mortgage loans held for investment, net		―		―		24,924		―			24,924
Other assets		―		―		28,467		(1,801	)		26,666
Total Financial Services Assets		―		―		354,200		(1,801	)		352,399
Total Assets	$	8,438,528	$	2,390,295	$	2,223,782	$	(4,343,561	)	$	8,709,044
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	92,611	$	78,729	$	40,440	$	―		$	211,780
Accrued liabilities and intercompany payables		387,098		1,302,228		964,796		(2,054,217	)		599,905
Secured project debt and other notes payable		359,025		―		3,480		(334,926	)		27,579
Senior notes payable		3,392,208		―		―		―			3,392,208
Total Homebuilding Liabilities		4,230,942		1,380,957		1,008,716		(2,389,143	)		4,231,472
Financial Services:
Accounts payable and other liabilities		―		―		22,559		―			22,559
Mortgage credit facility		―		―		247,427		―			247,427
Total Financial Services Liabilities		―		―		269,986		―			269,986
Total Liabilities		4,230,942		1,380,957		1,278,702		(2,389,143	)		4,501,458

Equity:
Total Equity		4,207,586		1,009,338		945,080		(1,954,418	)		4,207,586
Total Liabilities and Equity	$	8,438,528	$	2,390,295	$	2,223,782	$	(4,343,561	)	$	8,709,044

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	Six Months Ended June 30, 2017
	CalAtlantic Group, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated CalAtlantic Group, Inc.
	(Dollars in thousands)
Cash Flows From Operating Activities:
Net cash provided by (used in) operating activities	$	(161,020	)	$	10,352		$	151,260		$	―		$	592

Cash Flows From Investing Activities:
Investments in unconsolidated homebuilding joint ventures		(137	)		(59	)		(24,806	)		―			(25,002	)
Distributions of capital from unconsolidated homebuilding joint ventures		500			1,117			6,428			―			8,045
Net cash paid for acquisitions		―			―			(44,477	)		―			(44,477	)
Loan to parent and subsidiaries		―			―			12,596			(12,596	)		―
Other investing activities		(1,283	)		(979	)		(7,531	)		―			(9,793	)
Net cash provided by (used in) investing activities		(920	)		79			(57,790	)		(12,596	)		(71,227	)

Cash Flows From Financing Activities:
Change in restricted cash		―			―			(3,711	)		―			(3,711	)
Borrowings from revolving credit facility		264,450			―			―			―			264,450
Principal payments on revolving credit facility		(264,450	)		―			―			―			(264,450	)
Principal payments on secured project debt and other notes payable		―			―			(615	)		―			(615	)
Principal payment on senior notes payable		(230,000	)		―			―			―			(230,000	)
Proceeds from the issuance of senior notes payable		579,125			―			―			―			579,125
Payment of debt issuance costs		(4,595	)		―			―			―			(4,595	)
Loan from subsidiary		(12,596	)		―			―			12,596			―
Net proceeds from (payments on) mortgage credit facility		―			―			(97,599	)		―			(97,599	)
(Contributions to) distributions from Corporate and subsidiaries		1,210			―			(1,210	)		―			―
Repurchases of common stock		(150,014	)		―			―			―			(150,014	)
Common stock dividend payments		(9,019	)		―			―			―			(9,019	)
Issuance of common stock under employee stock plans, net of tax withholdings		(5,303	)		―			―			―			(5,303	)
Other financing activities		―			―			(67	)		―			(67	)
Intercompany advances, net		(71,048	)		(17,474	)		88,522			―			―
Net cash provided by (used in) financing activities		97,760			(17,474	)		(14,680	)		12,596			78,202

Net increase (decrease) in cash and equivalents		(64,180	)		(7,043	)		78,790			―			7,567
Cash and equivalents at beginning of period		105,261			38,211			64,655			―			208,127
Cash and equivalents at end of period	$	41,081		$	31,168		$	143,445		$	―		$	215,694

	Six Months Ended June 30, 2016
	CalAtlantic Group, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated CalAtlantic Group, Inc.
	(Dollars in thousands)
Cash Flows From Operating Activities:
Net cash provided by (used in) operating activities	$	(148,603	)	$	77,589		$	134,628		$	―		$	63,614

Cash Flows From Investing Activities:
Investments in unconsolidated homebuilding joint ventures		(178	)		(78	)		(22,336	)		―			(22,592	)
Distributions of capital from unconsolidated homebuilding joint ventures		1,107			110			6,898			―			8,115
Loan to parent and subsidiaries		―			―			41,000			(41,000	)		―
Other investing activities		279			(976	)		(3,469	)		―			(4,166	)
Net cash provided by (used in) investing activities		1,208			(944	)		22,093			(41,000	)		(18,643	)

Cash Flows From Financing Activities:
Change in restricted cash		―			―			6,063			―			6,063
Borrowings from revolving credit facility		693,700			―			―			―			693,700
Principal payments on revolving credit facility		(693,700	)		―			―			―			(693,700	)
Principal payments on secured project debt and other notes payable		(9,974	)		―			(195	)		―			(10,169	)
Proceeds from the issuance of senior notes payable		300,000			―			―			―			300,000
Payment of debt issue costs		(2,195	)		―			―			―			(2,195	)
Loan from subsidiary		(41,000	)		―			―			41,000			―
Net proceeds from (payments on) mortgage credit facility		―			―			(128,908	)		―			(128,908	)
(Contributions to) distributions from Corporate and subsidiaries		8,300			―			(8,300	)		―			―
Repurchases of common stock		(99,829	)		―			―			―			(99,829	)
Common stock dividend payments		(9,527	)		―			―			―			(9,527	)
Issuance of common stock under employee stock plans, net of tax withholdings		1,069			―			―			―			1,069
Other financing activities		―			(199	)		―			―			(199	)
Intercompany advances, net		122,427			(130,705	)		8,278			―			―
Net cash provided by (used in) financing activities		269,271			(130,904	)		(123,062	)		41,000			56,305

Net increase (decrease) in cash and equivalents		121,876			(54,259	)		33,659			―			101,276
Cash and equivalents at beginning of period		6,387			112,852			67,355			―			186,594
Cash and equivalents at end of period	$	128,263		$	58,593		$	101,014		$	―		$	287,870