As filed with the Securities and Exchange Commission on July 1, 2009

Registration No. 333-158974

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

 

Amendment No. 2

to

Form S-4

REGISTRATION STATEMENT

UNDER THE SECURITIES ACT OF 1933

Pulte Homes, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

100 Bloomfield Hills Parkway, Suite 300, Bloomfield Hills, Michigan 48304

(248) 647-2750

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

 

 

 

 

Steven M. Cook

Senior Vice President, General Counsel and Secretary

Pulte Homes, Inc.

100 Bloomfield Hills Parkway, Suite 300

Bloomfield Hills, Michigan 48304

(248) 647-2750

(Name, address, including zip code, and telephone number, including area code, of agent for service)

 

 

 

 

with copies to:

 

 

Approximate date of commencement of proposed sale of the securities to the public:  As soon as reasonably practicable after the effectiveness of this Registration Statement and the completion of the merger described in the enclosed joint proxy statement/prospectus.

 

If the securities being registered on this Form are being offered in connection with the formation of a holding company and there is compliance with General Instruction G, check the following box.  o

 

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  o

 

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  o

 

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):

 

 

 

 

 

The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until this registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

 

 

 

PRELIMINARY — SUBJECT TO COMPLETION — DATED JULY 1, 2009

 

 

MERGER PROPOSED — YOUR VOTE IS VERY IMPORTANT

 

Pulte Homes, Inc. and Centex Corporation have agreed to a merger that combines Pulte and Centex, subject to approval of Pulte’s shareholders and Centex’s stockholders and other customary closing conditions. If the proposed merger is completed, each outstanding share of Centex common stock (other than those shares held by Pulte or its merger subsidiary Pi Nevada Building Company, and other than treasury shares) will be converted into the right to receive 0.975 of a share of Pulte common stock. Certain directors and officers of Pulte, including Pulte’s founder and chairman William J. Pulte, and certain directors and officers of Centex entered into voting agreements pursuant to which they have agreed to vote their shares of Pulte or Centex, as applicable, in support of the transaction.

 

In the merger, Pulte expects to issue approximately [     ] million shares of Pulte common stock to Centex stockholders, based on Centex’s shares of common stock and equity awards outstanding as of [     ], 2009. Immediately following the merger, current Centex stockholders are expected to own approximately [     ]%, and current Pulte shareholders are expected to own approximately [     ]%, of the outstanding shares of Pulte common stock. The merger will have no effect on the number of shares owned by existing Pulte shareholders. The 0.975 exchange ratio is fixed and will not be adjusted for changes in the stock prices of either company before the merger is completed. Pulte common stock is traded on the New York Stock Exchange under the trading symbol “PHM”. On [     ], 2009, Pulte common stock closed at $[     ] per share as reported on the New York Stock Exchange.

 

The completion of the merger is conditioned upon Pulte’s shareholders approving the issuance of shares of Pulte common stock to Centex stockholders in the merger and the amendment of Pulte’s Restated Articles of Incorporation to increase the total number of authorized shares of common stock, and Centex’s stockholders approving the merger agreement. The boards of directors of Pulte and Centex unanimously recommend that their respective shareholders and stockholders vote “FOR” the proposals before them.

 

The proposals are being presented to the respective shareholders and stockholders of each company at their special meetings. The dates, times and places of the meetings are as follows:

 

 

Your vote is very important. Whether or not you plan to attend your company’s special meeting, please take the time to vote by completing and mailing the enclosed proxy card or voting instruction card or, if the option is available to you, by granting your proxy electronically over the Internet or by telephone.

 

This joint proxy statement/prospectus contains important information about Pulte, Centex, the merger agreement, the proposed merger and the special meetings. We encourage you to read carefully this joint proxy statement/prospectus before voting, including the section entitled “Risk Factors” beginning on page 19.

 

Sincerely,

 

 

Neither the Securities and Exchange Commission nor any state securities regulator has approved or disapproved of the transactions described in this joint proxy statement/prospectus or the securities to be issued pursuant to the merger or determined if the information contained in this joint proxy statement/prospectus is accurate or adequate. Any representation to the contrary is a criminal offense.

 

This joint proxy statement/prospectus is dated [     ], 2009, and is being mailed to Pulte shareholders and Centex stockholders on or about [     ], 2009.

 

 

PULTE HOMES, INC.
100 Bloomfield Hills Parkway, Suite 300
Bloomfield Hills, Michigan 48304

 

NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
TO BE HELD ON [      ], 2009

 

 

To the Shareholders of Pulte Homes, Inc.:

 

We will hold a special meeting of shareholders of Pulte at the Auburn Hills Marriott Pontiac at Centerpoint, located at 3600 Centerpoint Parkway, Pontiac, Michigan, on [     ], 2009, at 10:00 a.m., local time, for the following purposes:

 

1. To consider and vote upon a proposal to approve the issuance of shares of Pulte common stock pursuant to the Agreement and Plan of Merger, dated as of April 7, 2009, by and among Pulte, a wholly owned subsidiary of Pulte and Centex Corporation.

 

2. To consider and vote upon a proposal to amend the Pulte Restated Articles of Incorporation to increase the total number of shares of common stock that Pulte is authorized to issue from 400,000,000 to 500,000,000.

 

3. To consider and vote upon a proposal to amend the Pulte Restated Articles of Incorporation to change Pulte’s corporate name to “PulteGroup, Inc.”

 

4. To consider and vote upon a proposal to adjourn the special meeting, if necessary, to solicit additional proxies if there are not sufficient votes in favor of proposal 1 or 2.

 

5. To transact any other business as may properly come before the special meeting.

 

Only Pulte shareholders of record at the close of business on [     ], 2009, the record date for the special meeting, are entitled to notice of and to vote at the special meeting.

 

The Pulte board of directors unanimously recommends that you vote “FOR” the approval of the issuance of shares of Pulte common stock in the merger, “FOR” the amendment of Pulte’s Restated Articles of Incorporation to increase the number of authorized shares of common stock, “FOR” the amendment of Pulte’s Restated Articles of Incorporation to change Pulte’s corporate name and “FOR” the adjournment of the special meeting, if necessary, to solicit additional proxies if there are not sufficient votes in favor of proposal 1 or 2.

 

A list of shareholders eligible to vote at the Pulte special meeting will be available for inspection at the special meeting.

 

Your vote is very important.  It is important that your shares be represented and voted whether or not you plan to attend the special meeting in person. Instructions regarding the different methods for voting your shares are provided under the section entitled “Questions and Answers About the Special Meetings of Pulte Shareholders and Centex Stockholders” beginning on page iv.

 

By Order of the Board of Directors,

 

Richard J. Dugas, Jr.
President and Chief Executive Officer
Pulte Homes, Inc.

 

[      ], 2009

 

CENTEX CORPORATION
2728 N. Harwood Street
Dallas, Texas 75201

 

NOTICE OF SPECIAL MEETING OF STOCKHOLDERS

TO BE HELD ON [          ], 2009

 

 

To the Stockholders of Centex Corporation:

 

We will hold a special meeting of stockholders of Centex on the 10th floor of our headquarters building, located at 2728 N. Harwood Street, Dallas, Texas, on [     ], 2009, at 11:00 a.m., local time, for the following purposes:

 

1. To consider and vote upon a proposal to approve the Agreement and Plan of Merger, dated as of April 7, 2009, by and among Centex, Pulte Homes, Inc. and a wholly owned subsidiary of Pulte Homes, Inc.

 

2. To consider and vote upon a proposal to adjourn the special meeting, if necessary, to solicit additional proxies if there are not sufficient votes in favor of the foregoing.

 

3. To transact any other business as may properly come before the special meeting.

 

Only Centex stockholders of record at the close of business on [     ], 2009, the record date for the special meeting, are entitled to notice of and to vote at the special meeting.

 

The Centex board of directors unanimously recommends that you vote “FOR” the approval of the Agreement and Plan of Merger and “FOR” the adjournment of the special meeting, if necessary, to solicit additional proxies if there are not sufficient votes in favor of the foregoing.

 

A list of stockholders eligible to vote at the Centex special meeting will be available for inspection at the special meeting, and at the executive offices of Centex during regular business hours for a period of no less than ten days prior to the special meeting.

 

Your vote is very important. It is important that your shares be represented and voted whether or not you plan to attend the special meeting in person. Instructions regarding the different methods for voting your shares are provided under the section entitled “Questions and Answers About the Special Meetings of Pulte Shareholders and Centex Stockholders” beginning on page iv.

 

By Order of the Board of Directors,

 

Timothy R. Eller
Chairman and Chief Executive Officer
Centex Corporation

 

[      ], 2009

ADDITIONAL INFORMATION

 

This joint proxy statement/prospectus incorporates by reference important business and financial information about Pulte and Centex from documents that are not included in or delivered with this joint proxy statement/prospectus. For a more detailed description of the information incorporated by reference into this joint proxy statement/prospectus and how you may obtain it, see “Additional Information — Where You Can Find More Information” beginning on page 132.

 

You can obtain any of the documents incorporated by reference into this joint proxy statement/prospectus without charge from Pulte or Centex, as applicable, or from the Securities and Exchange Commission, which we refer to as the SEC, through the SEC’s website at www.sec.gov. Pulte shareholders and Centex stockholders may request a copy of such documents in writing or by telephone by contacting:

 

 

In addition, you may obtain copies of some of this information by accessing Pulte’s website at www.pulte.com under the heading “Investor Relations” and then under the link “SEC Filings.”

 

You may also obtain copies of some of this information by accessing Centex’s website at www.centex.com under the heading “Investors,” under the link “Financials,” and then under the link “SEC Filings.”

 

We are not incorporating the contents of the websites of the SEC, Pulte, Centex or any other entity into this joint proxy statement/prospectus. We are providing the information about how you can obtain certain documents that are incorporated by reference into this joint proxy statement/prospectus at these websites only for your convenience.

 

In order for you to receive timely delivery of the documents in advance of the respective Pulte and Centex special meetings, Pulte or Centex, as applicable, must receive your request no later than 5 days prior to the date of your company’s special meeting.

TABLE OF CONTENTS

 

 

The following are some questions that you, as a shareholder of Pulte or as a stockholder of Centex, may have regarding the special meeting of Pulte shareholders, which we refer to as the Pulte special meeting, or the special meeting of Centex stockholders, which we refer to as the Centex special meeting, and brief answers to those questions. For more detailed information about the matters discussed in these questions and answers, see “The Pulte Special Meeting” beginning on page 28 and “The Centex Special Meeting” beginning on page 33. Pulte and Centex encourage you to read carefully the remainder of this joint proxy statement/prospectus because the information in this section does not provide all of the information that might be important to you with respect to the merger and the other matters being considered at the Pulte special meeting or the Centex special meeting. Additional important information is also contained in the Annexes to and in the documents incorporated by reference into this joint proxy statement/prospectus.

 

 

 

 

 

 

 

 

 

 

 

 

 

Pulte Homes, Inc.		Centex Corporation
100 Bloomfield Hills Parkway, Suite 300		2728 N. Harwood Street
Bloomfield Hills, Michigan 48304		Dallas, Texas 75201
Attn.: Corporate Secretary		Attn.: Corporate Secretary

 

 

 

or

 

Pulte Homes, Inc.		D.F. King & Co., Inc.
100 Bloomfield Hills Parkway, Suite 300		48 Wall Street, 22nd Floor
Bloomfield Hills, Michigan 48304		New York, New York 10005
Attn.: Investor Relations		(800) 829-6651 (toll-free)
(248) 647-2750		(212) 269-5550 (collect)
		pulteproxy@dfking.com

 

 

or

 

Centex Corporation		Innisfree M&A Incorporated
P.O. Box 199000		501 Madison Avenue, 20th Floor
Dallas, Texas 75219-9000		New York, New York 10022
Attn.: Investor Relations		(877) 717-3930 (toll-free)
(214) 981-5000		(212) 750-5833 (collect for banks and brokers)
		info@innisfreema.com
		(for material requests only)

 

SUMMARY

 

The Companies

 

The Merger (see page 37)

 

Share Ownership of Directors and Executive Officers

 

Recommendation of the Pulte Board of Directors and Its Reasons for the Merger (see page 45)

 

Recommendation of the Centex Board of Directors and Its Reasons for the Merger (see page 49)

 

Opinions of Financial Advisors (see pages 51 and 57)

 

Ownership of Pulte After the Merger

 

Interests of Pulte’s Directors and Executive Officers in the Merger (see page 69)

 

Interests of Centex’s Directors and Executive Officers in the Merger (see page 69)

 

Management and Board of Directors of Pulte After the Merger (see page 68)

 

Listing of Pulte Common Stock (see page 68) and Delisting and Deregistration of Centex Common Stock (see page 68)

 

Dissenters’ Rights (see page 68)

 

Conditions to Completion of the Merger (see page 76)

	•	the approval of the proposal to approve the Merger Agreement by the holders of a majority of the outstanding shares of Centex common stock;

	•	the approval of (1) the proposal to approve the charter amendment to increase the number of authorized shares of common stock by the holders of a majority of the outstanding shares of Pulte common stock entitled to vote on this proposal and (2) the proposal to approve the issuance of shares in the merger by a majority of the votes cast on the proposal, provided that the total votes cast on this proposal represent over 50% of the outstanding shares of Pulte common stock entitled to vote on this proposal;

	•	the absence of any temporary restraining order or preliminary or permanent injunction issued by any court of competent jurisdiction that prohibits or prevents the completion of the merger;
	•	the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, which we refer to as the HSR Act, which condition was satisfied upon expiration of the applicable waiting period on May 22, 2009;
	•	the approval for listing on the NYSE of the shares of Pulte common stock to be issued in the merger and to be reserved for issuance in connection with the merger;
	•	the effectiveness under the Securities Act of 1933, as amended, which we refer to as the Securities Act, of the registration statement on Form S-4 of which this joint proxy statement/prospectus forms a part and the absence of any stop order or proceedings initiated by the SEC for that purpose;
	•	the accuracy and correctness of representations and warranties of the other party, subject to certain qualifications described in the Merger Agreement, and the receipt of a certificate from the officers of the other party to that effect;
	•	the other party’s having performed and complied with its covenants in the Merger Agreement in all material respects prior to the completion of the merger, and the receipt of a certificate from the officers of the other party to that effect; and

	•	the receipt by each party of a tax opinion from its counsel that the merger will be treated as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended, which we refer to as the Internal Revenue Code.

 

Regulatory Approvals (see page 63)

 

Litigation (see page 63)

 

No Solicitation by Centex (see page 78)

 

Termination of the Merger Agreement (see page 86)

	•	the merger does not occur on or before November 7, 2009;
	•	a governmental entity permanently enjoins or otherwise prohibits the completion of the merger;
	•	the Centex special meeting concludes without the approval of the proposal to approve the Merger Agreement by Centex’s stockholders; or

	•	the Pulte special meeting concludes without the approval of the proposal to approve the issuance of shares in the merger and the proposal to approve the charter amendment to increase the number of authorized shares of common stock by Pulte’s shareholders.

	•	Centex is not in material breach of certain restrictions on its ability to solicit alternative proposals, including its obligation to notify Pulte of the superior proposal;

	•	the superior proposal continues to constitute a superior proposal three business days after Pulte is notified of the superior proposal; and
	•	the Centex board of directors determines that recommending that Centex stockholders vote for the proposal to approve the Merger Agreement, or failing to change such recommendation, would be inconsistent with its fiduciary obligations.

	•	Pulte breaches or fails to perform in any material respect any of its representations, warranties, covenants or other agreements, which breach or failure to perform would result in a failure of any of the conditions to Centex’s obligation to complete the merger; or

	•	Pulte’s board of directors changes its recommendation that Pulte’s shareholders approve the proposal to approve the charter amendment to increase the number of authorized shares of common stock and the proposal to approve the issuance of shares in the merger.

	•	Centex breaches or fails to perform in any material respect any of its representations, warranties, covenants or other agreements, which breach or failure to perform would result in a failure of any of the conditions to Pulte’s obligation to complete the merger; or
	•	the Centex board of directors changes its recommendation that Centex’s stockholders approve the proposal to approve the Merger Agreement, or recommends the approval or adoption of any alternative proposal to Centex’s stockholders.

 

Termination Fees (see page 87)

 

Material United States Federal Income Tax Consequences (see page 65)

 

Accounting Treatment (see page 67)

 

Risk Factors (see page 19)

 

Dividend Policies

 

Comparison of Stockholder Rights and Corporate Governance Matters (see page 123)

	•	Centex’s stockholders may amend Centex’s by-laws with the affirmative vote of stockholders holding 662/3% or more of the voting power, whereas Pulte stockholders may amend Pulte’s by-laws with the approval of a majority of the votes cast;
	•	A Centex stockholder that intends to nominate a director or bring business before an annual meeting must comply with certain advance notice requirements, whereas a Pulte shareholder is only required to do so if he or she intends to nominate a director;
	•	Nevada law, to which Centex is subject, limits the voting rights of shares acquired by certain stockholders that acquire more than twenty percent of a corporation’s shares, whereas Michigan law, to which Pulte is subject, does not provide for such a restriction;
	•	To preserve Pulte’s net operating loss carryforwards and other tax benefits, Pulte’s by-laws provide for certain transfer restrictions on Pulte’s common stock, whereas neither Centex’s articles of incorporation nor by-laws provide for any transfer restrictions to preserve Centex’s net operating loss carryforwards and other tax benefits; and
	•	Pulte’s Restated Articles of Incorporation and by-laws permit shareholder action by written consent if signed by the requisite number of holders, whereas Centex’s articles of incorporation and by-laws generally prohibit stockholder action by written consent, subject to certain limited exceptions.

 

Fees and Expenses (see page 89)

 

Summary Selected Historical Financial Data for Pulte

		Three Months Ended March 31, (1)								Year Ended December 31, (1)
		2009				2008				2008				2007				2006				2005				2004
		(Dollars in thousands, except per share data)
OPERATING DATA:
Homebuilding:
Revenues		$	565,343			$	1,398,109			$	6,112,038			$	9,121,730			$	14,075,248			$	14,528,236			$	11,400,008
Income (loss) before income taxes		$	(507,433	)		$	(705,130	)		$	(1,694,711	)		$	(2,509,492	)		$	1,010,368			$	2,298,822			$	1,635,580
Financial Services:
Revenues		$	18,549			$	43,488			$	151,016			$	134,769			$	194,596			$	161,414			$	112,719
Income (loss) before income taxes		$	(748	)		$	15,044			$	28,045			$	42,980			$	115,460			$	70,586			$	47,429
Other non-operating:
Revenues		$	3,528			$	7,222			$	26,404			$	6,595			$	4,564			$	4,885			$	1,749
Income (loss) before income taxes		$	(4,065	)		$	(2,970	)		$	(15,933	)		$	(30,391	)		$	(43,100	)		$	(92,394	)		$	(90,685	)
Consolidated results:
Revenues		$	587,420			$	1,448,819			$	6,289,458			$	9,263,094			$	14,274,408			$	14,694,535			$	11,514,476
Income (loss) from continuing operations before income taxes		$	(512,246	)		$	(693,056	)		$	(1,682,599	)		$	(2,496,903	)		$	1,082,728			$	2,277,014			$	1,592,324
Income taxes (benefit)			2,572				3,088				(209,486	)			(222,486	)			393,082				840,126				598,751
Income (loss) from continuing operations			(514,818	)			(696,144	)			(1,473,113	)			(2,274,417	)			689,646				1,436,888				993,573
Income (loss) from discontinued operations(1)			—				—				—				18,662				(2,175	)			55,025				(7,032	)
Net income (loss)		$	(514,818	)		$	(696,144	)		$	(1,473,113	)		$	(2,255,755	)		$	687,471			$	1,491,913			$	986,541

(1)		Income (loss) from discontinued operations is comprised of Pulte’s former thrift operation and Argentina and Mexico homebuilding operations which have been presented as discontinued operations for all periods presented.

		Three Months Ended March 31, (1)								Year Ended December 31, (1)
		2009				2008				2008				2007				2006				2005				2004
		(Dollars in thousands, except per share data)
PER SHARE DATA:
Earnings per share — basic:
Income (loss) from continuing operations		$	(2.02	)		$	(2.75	)		$	(5.81	)		$	(9.02	)		$	2.73			$	5.62			$	3.93
Income (loss) from discontinued operations(1)			—				—				—				0.07				(0.01	)			0.22				(0.03	)
Net income (loss)		$	(2.02	)		$	(2.75	)		$	(5.81	)		$	(8.94	)		$	2.73			$	5.84			$	3.91
Weighted-average common shares outstanding (000’s omitted)			254,578				253,166				253,512				252,192				252,200				255,492				252,590
Earnings per share — assuming dilution:
Income (loss) from continuing operations		$	(2.02	)		$	(2.75	)		$	(5.81	)		$	(9.02	)		$	2.67			$	5.47			$	3.82
Income (loss) from discontinued operations(1)			—				—				—				0.07				(0.01	)			0.21				(0.03	)
Net income (loss)		$	(2.02	)		$	(2.75	)		$	(5.81	)		$	(8.94	)		$	2.66			$	5.68			$	3.79
Weighted-average common shares outstanding and effect of diluted securities (000’s omitted)			254,578				253,166				253,512				252,192				258,621				262,801				260,234
Shareholders’ equity		$	9.00			$	14.08			$	10.98			$	16.80			$	25.76			$	23.18			$	17.68
Cash dividends declared(2)		$	—			$	0.04			$	0.16			$	0.16			$	0.16			$	0.13			$	0.10

(1)		Income (loss) from discontinued operations is comprised of Pulte’s former thrift operation and Argentina and Mexico homebuilding operations which have been presented as discontinued operations for all periods presented.
(2)		On November 24, 2008, Pulte discontinued the regular quarterly dividend on Pulte’s common stock effective in the first quarter of 2009.

		March 31,								December 31,
		2009				2008				2008				2007				2006				2005				2004
		(Dollars in thousands)
BALANCE SHEET DATA:
House and land inventory		$	3,854,041			$	6,179,847			$	4,201,289			$	6,835,945			$	9,374,335			$	8,756,093			$	7,241,350
Total assets		$	6,814,933			$	9,047,124			$	7,708,458			$	10,225,703			$	13,176,874			$	13,060,860			$	10,406,897
Senior notes		$	3,166,612			$	3,478,577			$	3,166,305			$	3,478,230			$	3,537,947			$	3,386,527			$	2,861,550
Shareholders’ equity		$	2,327,787			$	3,624,382			$	2,835,698			$	4,320,193			$	6,577,361			$	5,957,342			$	4,522,274

		Three Months Ended March 31,								Year Ended December 31,
		2009				2008				2008				2007				2006				2005				2004
OTHER DATA:
Homebuilding:
Total markets, at balance sheet date			48				51				49				51				52				54				45
Total settlements — units			2,147				4,733				21,022				27,540				41,487				45,630				38,612
Total net new orders — units			3,022				5,402				15,306				25,175				33,925				47,531				40,576
Backlog units, at balance sheet date			3,049				8,559				2,174				7,890				10,255				17,817				15,916
Average unit selling price		$	263,000			$	295,000			$	284,000			$	322,000			$	337,000			$	315,000			$	287,000
Gross profit margin from home sales(1)			(59.0	)%			(32.1	)%			(10.1	)%			(5.0	)%			17.4	%			23.4	%			22.6	%

(1)		Homebuilding interest expense, which represents the amortization of capitalized interest, and land and community valuation adjustments are included in homebuilding cost of sales.

 

Summary Selected Historical Financial Data for Centex

		Year Ended March 31, (1)
		2009				2008				2007				2006				2005
		(Dollars in thousands, except per share data)
Revenues		$	3,826,530			$	8,275,562			$	11,887,601			$	12,742,666			$	9,842,700
Earnings (Loss) from Continuing Operations		$	(1,440,151	)		$	(2,660,968	)		$	(9,477	)		$	1,212,665			$	898,571
Net Earnings (Loss)		$	(1,388,754	)		$	(2,657,482	)		$	268,366			$	1,289,313			$	1,011,364
Shareholders’ Equity		$	917,814			$	2,298,661			$	5,112,269			$	5,011,658			$	4,280,757
Total Assets		$	5,918,114			$	8,137,332			$	13,199,933			$	21,364,999			$	20,011,163
Total Debt		$	3,223,924			$	3,662,220			$	5,565,157			$	6,055,197			$	4,799,365
Per Common Share
Earnings (Loss) from Continuing Operations Per Share — Basic		$	(11.58	)		$	(21.71	)		$	(0.08	)		$	9.56			$	7.18
Earnings (Loss) from Continuing Operations Per Share — Diluted		$	(11.58	)		$	(21.71	)		$	(0.08	)		$	9.13			$	6.79
Net Earnings (Loss) Per Share — Basic		$	(11.17	)		$	(21.68	)		$	2.23			$	10.16			$	8.08
Net Earnings (Loss) Per Share —
Diluted		$	(11.17	)		$	(21.68	)		$	2.23			$	9.71			$	7.64
Cash Dividends(2)		$	0.08			$	0.16			$	0.16			$	0.16			$	0.16
Book Value Per Share Based on Shares Outstanding at Balance Sheet Date		$	7.38			$	18.65			$	42.61			$	41.04			$	33.51
Average Shares Outstanding
Basic			124,308,846				122,577,071				120,537,235				126,870,887				125,226,596
Diluted			124,308,846				122,577,071				120,537,235				132,749,797				132,397,961

(1)		The selected financial data presented in this table have been derived from Centex’s audited annual financial statements and adjusted to reflect Centex’s home services operations (sold in April 2008), Construction Services (sold in March 2007), Home Equity (sold in July 2006), and International Homebuilding (sold in September 2005) as discontinued operations.
(2)		On October 9, 2008, Centex announced the discontinuation of the regular quarterly dividend on Centex’s common stock.

 

Selected Unaudited Pro Forma Condensed Combined Financial Information

		For the Three Months				For the Year Ended
		Ended March 31,				December 31,
		2009				2008
		(Dollars in thousands, except per share data)
Statement of Operations Data:
Revenues		$	1,414,235			$	11,623,171
Expenses			2,382,894				15,271,894
Equity loss			(40,078	)			(123,977	)
Loss from continuing operations before income taxes			(1,008,737	)			(3,772,700	)
Income taxes (benefit)			(63,031	)			(255,374	)
Loss from continuing operations		$	(945,706	)		$	(3,517,326	)

		For the Three Months				For the Year Ended
		Ended March 31,				December 31,
		2009				2008
Share and Per Share Data:
Net loss per share
Basic		$	(2.51	)		$	(9.37	)
Diluted		$	(2.51	)		$	(9.37	)
Weighted average common shares outstanding
Basic			376,276,000				375,214,000
Diluted			376,276,000				375,214,000

		As of March 31,
		2009
		(Dollars in thousands,
		except per share data)
Balance Sheet Data:
Cash and equivalents		$	3,455,213
House and land inventory		$	6,544,026
Total assets		$	12,449,359
Senior notes		$	5,769,300
Shareholders’ equity		$	3,394,103
Book value per common share outstanding		$	8.93	(1)

(1)		Book value per common share outstanding was calculated as shareholders’ equity divided by the sum of the 258,563,448 shares of Pulte common stock outstanding at March 31, 2009 and the 121,698,000 pro forma shares of Pulte common stock estimated to be issued in connection with the merger.

 

Unaudited Pro Forma Combined Per Share Information

		For the Three
		Months Ended				For the Year Ended
		March 31,				December 31,
		2009				2008
Unaudited pro forma combined:
Net loss per share attributable to Pulte
Basic		$	(2.51	)		$	(9.37	)
Diluted		$	(2.51	)		$	(9.37	)
Dividends declared per common share		$	—	(2)		$	0.16	(2)
Book value per common share		$	8.93	(1)			—
Unaudited pro forma Centex equivalent(4):
Net loss per share of Centex common stock exchanged
Basic		$	(2.45	)		$	(9.14	)
Diluted		$	(2.45	)		$	(9.14	)
Dividends declared per common share of Centex stock exchanged		$	—	(2)		$	0.16	(2)
Book value per common share of Centex stock exchanged		$	8.70				—
Pulte historical data:
Loss per share from continuing operations:
Basic		$	(2.02	)		$	(5.81	)
Diluted		$	(2.02	)		$	(5.81	)
Dividends declared per common share		$	—	(2)		$	0.16	(2)
Book value per common share		$	9.00				—
Centex historical data:
Loss per share from continuing operations:
Basic		$	(3.26	)		$	(15.65	)
Diluted		$	(3.26	)		$	(15.65	)
Dividends declared per common share		$	—	(3)		$	0.08	(3)
Book value per common share		$	7.38				—

(1)		Book value per common share outstanding was calculated as shareholders’ equity divided by the sum of the 258,563,448 shares of Pulte common stock outstanding at March 31, 2009 and the 121,698,000 pro forma shares of Pulte common stock estimated to be issued in connection with the merger.
(2)		On November 24, 2008, Pulte discontinued the regular quarterly dividend on Pulte’s common stock effective in the first quarter of 2009. Due to the ongoing difficult business conditions and Pulte’s expectation that such conditions will continue for at least the near term, Pulte does not anticipate paying dividends on its common stock in the foreseeable future.
(3)		On October 9, 2008, Centex announced the discontinuation of the regular quarterly dividend on Centex’s common stock.
(4)		The pro forma Centex equivalent per share information is computed by multiplying the pro forma combined per share amounts by the 0.975 per share exchange ratio to provide per share information for each share of Centex common stock.

 

Comparative Per Share Market Price Data

		Pulte Common Stock
		High				Low				Dividends Paid
Calendar Year 2007
First quarter		$	35.56			$	25.51			$	0.04
Second quarter		$	29.40			$	22.26			$	0.04
Third quarter		$	24.25			$	12.88			$	0.04
Fourth quarter		$	16.99			$	8.78			$	0.04
Calendar Year 2008
First quarter		$	16.63			$	8.20			$	0.04
Second quarter		$	16.81			$	9.57			$	0.04
Third quarter		$	17.32			$	8.32			$	0.04
Fourth quarter		$	15.38			$	6.49			$	0.04
Calendar Year 2009
First quarter		$	12.90			$	7.71				—
Second quarter		$	12.45			$	8.30				—
Third quarter (through [          ], 2009)		$	[     ]			$	[     ]				—

		Centex Common Stock
		High				Low				Dividends Paid
Calendar Year 2007
First quarter		$	56.45			$	40.41			$	0.04
Second quarter		$	49.85			$	39.59			$	0.04
Third quarter		$	44.23			$	24.55			$	0.04
Fourth quarter		$	30.75			$	17.77			$	0.04
Calendar Year 2008
First quarter		$	30.29			$	18.17			$	0.04
Second quarter		$	27.72			$	13.33			$	0.04
Third quarter		$	18.71			$	10.91			$	0.04
Fourth quarter		$	17.16			$	4.91				—
Calendar Year 2009
First quarter		$	12.49			$	5.03				—
Second quarter		$	11.95			$	7.06				—
Third quarter (through [          ], 2009)		$	[     ]			$	[     ]				—

Value of Merger

Consideration

Pulte

Centex

Per Share of Centex

Date

Common Stock

Common Stock

Common Stock(1)

April 7, 2009

$

10.77

$

7.62

$

10.50

[          ], 2009

$

[     ]

$

[     ]

$

[     ]

(1)		Calculated by multiplying the last reported sale price of Pulte common stock by the 0.975 per share exchange ratio.

 

The merger involves risks for Pulte shareholders and Centex stockholders. Centex stockholders will be choosing to invest in Pulte common stock by voting in favor of the proposal to approve the Merger Agreement. Pulte shareholders will be choosing to permit significant dilution of their percentage ownership in Pulte by voting in favor of the proposal to approve the issuance of shares in the merger and to authorize potential further dilution of their percentage ownership in Pulte by voting in favor of the proposal to approve the charter amendment to increase the number of authorized shares of common stock. In addition to the other information included in this joint proxy statement/prospectus, including the matters addressed in “Cautionary Statement Concerning Forward-Looking Statements” beginning on page 26, you should carefully consider the following risks before deciding whether to vote for approval of the proposal to approve the Merger Agreement, in the case of Centex stockholders, or for approval of the proposal to approve the issuance of shares in the merger and the proposal to approve the charter amendment to increase the number of authorized shares of common stock, in the case of Pulte shareholders. You should also read and consider the risks associated with each of the businesses of Pulte and Centex that are incorporated by reference into this joint proxy statement/prospectus because these risks may also affect the combined company. These risks can be found in the Pulte Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and the Centex Annual Report on Form 10-K for the fiscal year ended March 31, 2009, which are filed with the SEC and incorporated by reference into this joint proxy statement/prospectus. You should also read and consider the other information in this joint proxy statement/prospectus and the other documents incorporated by reference into this joint proxy statement/prospectus. See “Additional Information — Where You Can Find More Information” beginning on page 132.

 

The combined company will have more indebtedness after the merger, which could adversely affect its cash flows and business.

 

As of March 31, 2009, the principal amount of Pulte’s outstanding long-term debt was approximately $3.2 billion and its debt service obligations, comprised of scheduled maturities of principal and interest, during the next twelve months was approximately $234 million. Assuming the merger had been completed on March 31, 2009, the principal amount of the combined company’s outstanding debt as of March 31, 2009 would have been approximately $6.3 billion and, based on assumed interest rates, leverage ratios and credit ratings, the combined company’s debt service obligations, comprised of scheduled maturities of principal and interest, during the next twelve months, in the absence of any other transactions, would have been approximately $627 million. As a result of this increase in debt, demands on the combined company’s cash resources will increase after the completion of the merger. As of March 31, 2009, Pulte and Centex had combined cash on hand of approximately $3.5 billion. The increased levels of debt could, among other things:

 

 

Pulte may not realize all of the anticipated benefits of the transaction.

 

The combined company’s ability to realize the anticipated benefits of the merger will depend, to a large extent, on the ability of Pulte to integrate the businesses of Centex with Pulte. The combination of two independent companies is a complex, costly and time-consuming process. As a result, the combined company will be required to devote significant management attention and resources to integrating the business practices and operations of Pulte and Centex. The integration process may disrupt the business of either or both of the companies and, if implemented ineffectively, would preclude realization of the full benefits expected by Pulte and Centex. The failure of the combined company to meet the challenges involved in integrating successfully the operations of Pulte and Centex or otherwise to realize the anticipated benefits of the transaction could cause an interruption of, or a loss of momentum in, the activities of the combined company and could seriously harm its results of operations. In addition, the overall integration of the two companies may result in unanticipated problems, expenses, liabilities, competitive responses, loss of customer and supplier relationships, and diversion of management’s attention, and may cause the combined company’s stock price to decline. The difficulties of combining the operations of the companies include, among others:

 

 

In addition, even if the operations of Pulte and Centex are integrated successfully, the combined company may not realize the full benefits of the transaction, including the synergies, cost savings or sales or growth opportunities that we expect. These benefits may not be achieved within the anticipated time frame, or at all. As a result, Pulte and Centex cannot assure you that the combination of Centex with Pulte will result in the realization of the full benefits anticipated from the transaction.

 

The price of Pulte common stock might decline prior to the completion of the merger, which would decrease the value of the merger consideration to be received by Centex stockholders in the merger. Further, at the Centex special meeting, Centex stockholders will not know the exact value of Pulte common stock that will be issued in the merger.

 

The market price of Pulte common stock at the time the merger is completed may vary significantly from the price on the date of the Merger Agreement or from the price on the date of the Pulte special meeting and Centex special meeting. Pulte common stock has historically experienced volatility. On April 7, 2009, the last full trading day prior to the public announcement of the proposed merger, Pulte common stock closed at $10.77 per share as reported on the NYSE. From April 8, 2009, through [     ], 2009, the trading price of Pulte common stock ranged from a closing high of $[     ] per share to a closing low of $[     ] per share.

 

Under the Merger Agreement, each outstanding share of Centex common stock (other than those shares held by Pulte or its merger subsidiary Pi Nevada Building Company, and other than treasury shares) will be converted into the right to receive, upon completion of the merger, the merger consideration. The exchange ratio is fixed and will not be adjusted for changes in the stock prices of either company before the merger is completed. As a result, any changes in the market price of Pulte common stock will have a corresponding effect on the market value of the merger consideration. Neither party, however, has a right to terminate the Merger Agreement based upon changes in the market price of Pulte or Centex common stock.

Pulte and Centex are working to complete the transaction as quickly as possible. We currently expect that the merger will be completed during the third quarter of 2009. Because the date when the transaction is completed may be later than the date of the special meetings, Pulte shareholders and Centex stockholders may not know the exact value of the Pulte common stock that will be issued in the merger at the time they vote on the proposal to approve the Merger Agreement. As a result, if the market price of Pulte common stock upon the completion of the merger is lower than the market price on the date of the Centex special meeting, the market value of the merger consideration received by Centex stockholders in the merger will be lower than the market value of the merger consideration at the time of vote by the Centex stockholders. Moreover, during this interim period, events, conditions or circumstances could arise that could have a material impact or effect on Pulte, Centex or the industries in which they operate.

 

To be successful, the combined company must retain and motivate key employees, and failure to do so could seriously harm the combined company.

 

To be successful, the combined company must retain and motivate executives and other key employees. Employees of Pulte and Centex may experience uncertainty about their future roles with the combined company until or after strategies for the combined company are announced or executed. These circumstances may adversely affect the combined company’s ability to retain key personnel. The combined company also must continue to motivate employees and keep them focused on the strategies and goals of the combined company, which effort may be adversely affected as a result of the uncertainty and difficulties with integrating Pulte and Centex. If the combined company is unable to retain executives and other key employees, the roles and responsibilities of such executive officers and employees will need to be filled either by existing or new officers and employees, which may require the combined company to devote time and resources to identifying, hiring and integrating replacements for the departed executives that could otherwise be used to integrate the businesses of Pulte and Centex or otherwise pursue business opportunities.

 

If the combined company is unable to manage its growth, its business and financial results could suffer.

 

The combined company’s future financial results will depend in part on its ability to profitably manage its core businesses, including any growth that the combined company may be able to achieve. Over the past several years, each of Pulte and Centex has engaged in the identification of, and competition for, growth and expansion opportunities. In order to achieve those initiatives, the combined company will need to, among other things, recruit, train, retain and effectively manage employees and expand its operations and financial control systems. If the combined company is unable to manage its businesses effectively and profitably, its business and financial results could suffer.

 

The issuance of shares of Pulte common stock to Centex stockholders in the merger will substantially reduce the percentage ownership interests of Pulte shareholders.

 

If the transaction is completed, Pulte and Centex expect that, based on Centex’s shares of common stock and equity awards outstanding as of the Pulte record date, Pulte will issue approximately [     ] million shares of Pulte common stock in the merger. Current Centex stockholders are expected to own approximately [     ]%, and current Pulte shareholders are expected to own approximately [     ]%, of the shares of Pulte common stock outstanding after the merger. The merger will have no effect on the number of shares of Pulte common stock owned by existing Pulte shareholders. The issuance of approximately [          ] million shares of Pulte common stock to Centex stockholders and holders of equity-based incentive awards will cause a significant reduction in the relative percentage interests of current Pulte shareholders in earnings, voting, liquidation value and book and market value. See “Summary — Ownership of Pulte After the Merger” beginning on page 4.

 

The pro forma financial statements are presented for illustrative purposes only and may not be an indication of the combined company’s financial condition or results of operations following the transaction.

 

The pro forma financial statements contained in this joint proxy statement/prospectus are presented for illustrative purposes only and may not be an indication of the combined company’s financial condition or

results of operations following the merger for several reasons. The pro forma financial statements have been derived from the historical financial statements of Pulte and Centex and adjustments and assumptions have been made regarding the combined company after giving effect to the transaction. The information upon which these adjustments and assumptions have been made is preliminary, and these kinds of adjustments and assumptions are difficult to make with accuracy. Moreover, the pro forma financial statements do not reflect all costs that are expected to be incurred by the combined company in connection with the transaction. For example, the impact of any incremental costs incurred in integrating the two companies is not reflected in the pro forma financial statements. As a result, the actual financial condition and results of operations of the combined company following the merger may not be consistent with, or evident from, these pro forma financial statements.

 

The assumptions used in preparing the pro forma financial information may not prove to be accurate, and other factors may affect the combined company’s financial condition or results of operations following the transaction. Any decline or potential decline in the combined company’s financial condition or results of operations may cause significant variations in the stock price of the combined company. See “Unaudited Pro Forma Condensed Combined Financial Statements” beginning on page 93.

 

The financial forecasts involve risks, uncertainties and assumptions, many of which are beyond the control of Pulte and Centex. As a result, they may not prove to be accurate and are not necessarily indicative of current values or future performance.

 

The financial forecasts of Pulte and Centex contained in this joint proxy statement/prospectus involve risks, uncertainties and assumptions and are not a guarantee of future performance. The future financial results of Pulte, Centex and, if the merger is completed, the combined company, may materially differ from those expressed in the financial forecasts due to factors that are beyond Pulte’s and Centex’s ability to control or predict. Neither Pulte nor Centex can provide any assurance that their respective financial forecasts will be realized or that their respective future financial results will not materially vary from the financial forecasts. The financial forecasts cover multiple years, and the information by its nature becomes subject to greater uncertainty with each successive year. The financial forecasts do not take into account any circumstances or events occurring after the date they were prepared.

 

More specifically, the financial forecasts:

 

 

The financial forecasts were not prepared with a view toward public disclosure or compliance with published guidelines of the SEC or the American Institute of Certified Public Accountants for preparation and presentation of prospective financial information or GAAP and do not reflect the effect of any proposed or other changes in GAAP that may be made in the future. See “Financial Forecasts” beginning on page 113.

 

Some of the conditions to the merger may be waived by Pulte or Centex without resoliciting shareholder or stockholder approval of the proposals approved by them.

 

Some of the conditions set forth in the Merger Agreement may be waived by Pulte or Centex, subject to the agreement of the other party in specific cases. See “The Merger Agreement — Conditions to Completion of the Merger” beginning on page 76. If any conditions are waived, Pulte and Centex will evaluate whether amendment of this joint proxy statement/prospectus and resolicitation of proxies are warranted. If the board of

directors of Pulte or Centex determines that resolicitation of their respective shareholders or stockholders is not warranted, the applicable company will have the discretion to complete the merger without seeking further shareholder or stockholder approval.

 

Provisions of the Merger Agreement may deter alternative business combinations and could negatively impact the stock prices of Pulte and Centex if the Merger Agreement is terminated in certain circumstances.

 

Restrictions in the Merger Agreement prohibit Centex from soliciting any acquisition proposal or offer for a merger or business combination with any other party, including a proposal that might be advantageous to the stockholders of Centex when compared to the terms and conditions of the merger with Pulte.

 

In addition, if the Merger Agreement is terminated, Centex may be required in specified circumstances to pay a termination fee of $24 million or $48 million to Pulte, and Pulte may be required in specified circumstances to pay a termination fee of $51 million or $102 million to Centex. In the event the merger is terminated by Pulte or Centex in circumstances that obligate either party to pay the termination fee to the other party, the trading price of Pulte’s and/or Centex’s stock may decline.

 

These provisions may deter third parties from proposing or pursuing alternative business combinations that might result in greater value to Centex stockholders than the merger with Pulte.

 

Directors and executive officers of Centex have interests in the transaction that are different from, or in addition to, the interests of Centex stockholders.

 

Centex’s executive officers and directors have financial interests in the merger that are different from, or in addition to, their interests as Centex stockholders. Stock-based awards held by Centex’s executive officers and directors will vest in connection with the merger. In addition, each of Centex’s executive officers participates in the Centex Corporation Plan Regarding Severance After a Change in Control, which would provide severance and other benefits in the case of qualifying terminations of employment following a change in control, including the merger. Timothy R. Eller, chairman and chief executive officer of Centex, has entered into a consulting agreement with Pulte providing for certain payments and benefits to him upon the completion of the merger, and for Mr. Eller to serve as vice chairman of the Pulte board of directors and serve as a consultant to Pulte, in each case, for a period of two years following the completion of the merger. Pursuant to the terms of Centex’s nonqualified deferred compensation arrangements, certain benefits payable to executive officers will vest upon completion of the merger.

 

The merger may result in substantial goodwill for the combined company. If the combined company’s goodwill becomes impaired, then the profits of the combined company may be significantly reduced or eliminated and shareholders’ equity may be reduced.

 

The unaudited pro forma financial statements reflect preliminary estimates of goodwill of approximately $241.6 million as a result of the merger. This approximate amount of goodwill assumes that the Pulte common stock received by the Centex stockholders in the merger has a market value of $8.96 per share (the closing price of Pulte common stock on the NYSE on June 25, 2009). The actual amount of goodwill recorded may be materially different and will depend in part on the market value of Pulte common stock as of the date on which the merger is completed and the appropriate allocation of purchase price, which may be impacted by a number of factors, including changes in the net assets acquired and changes in the fair values of the net assets acquired. On at least an annual basis, Pulte assesses whether there has been an impairment in the value of goodwill. If the carrying value of goodwill exceeds its estimated fair value, impairment is deemed to have occurred and the carrying value of goodwill is written down to fair value. Under GAAP, this would result in a charge to the combined company’s operating earnings. Accordingly, any determination requiring the write-off of a significant portion of goodwill recorded in connection with the merger would negatively affect the combined company’s results of operations.

The combined company may be subject to additional asset impairments in the future.

 

Both Pulte and Centex have incurred in recent periods substantial impairments of their land and certain other assets. The market value of land, building lots and housing inventories can fluctuate significantly as a result of changing market conditions and the measures that the combined company will employ to manage inventory risk may not be adequate to insulate its operations from a severe drop in inventory values. If housing demand continues to decrease below what the combined company anticipates, the combined company may not be able to generate profits similar to what Pulte and Centex have made in the past, may experience less than anticipated profits, and/or may not be able to recover its costs when it sells and builds homes. When market conditions are such that land values are not appreciating, option arrangements previously entered into may become less desirable, at which time the combined company may elect to forego deposits and pre-acquisition costs and terminate the agreement. In the face of adverse market conditions, the combined company may have substantial inventory carrying costs, may have to write down its inventory to its fair value, and/or may have to sell land or homes at a loss.

 

As a result of the changing market conditions in the homebuilding industry that have occurred since early 2006, both Pulte and Centex have incurred significant land-related charges resulting from the write-off of deposits and pre-acquisition costs related to land transactions that they each no longer plan to pursue, net realizable valuation adjustments related to land positions sold or held for sale, impairments on land assets related to communities under development or to be developed in the future, and impairments of their respective investments in unconsolidated joint ventures. It is possible that the estimated cash flows from these projects may change and could result in a future need of the combined company to record additional valuation adjustments.

 

If conditions in the homebuilding industry worsen in the future or if the combined company’s strategy related to certain communities changes, the combined company may be required to evaluate its assets, including additional projects, for additional impairments or write-downs, which could result in additional charges that might be significant. Pulte and Centex cannot predict the duration of the downturn in the homebuilding industry, nor provide any assurances that the adjustments that the combined company intends to make in its operating strategy to address the conditions will be successful.

 

We also currently expect that the combined company will have over $200 million of intangible assets relating to tradenames, of which approximately $110 million will have resulted from the merger. The combined company will periodically assess whether there has been an impairment in the value of these intangible assets. If an impairment is deemed to have occurred, then the carrying value of the tradenames will be written down to fair value. Under GAAP, this would result in a charge to the combined company’s operating earnings. Accordingly, any determination requiring the write-off of a significant portion of the value of the tradenames recorded in connection with the merger would negatively affect the combined company’s results of operations.

 

Pulte and Centex will incur significant transaction and merger-related integration costs in connection with the merger.

 

Pulte and Centex expect to incur costs associated with completing the merger and integrating the operations of the two companies. Pulte and Centex estimate that their transaction costs for the merger will be approximately $20.0 million and $30.0 million, respectively, which include fees for investment banking, legal, accounting, due diligence, tax, valuation, printing and other various services in connection with the transaction. The substantial majority of additional non-recurring expenses resulting from the merger will be comprised of facilities and systems consolidation costs and employment-related costs. Pulte currently estimates severance costs for cash payments to certain senior executive positions at Centex in connection with termination of employment to be approximately $9.6 million. Pulte is continuing to assess the magnitude of the facilities and systems consolidation costs and other non-recurring employment-related costs that will be required in connection with the merger and, therefore, is unable to provide an estimate of these costs at this time. Additional unanticipated costs may be incurred in the integration of the businesses of Pulte and Centex. Although Pulte and Centex expect that the elimination of duplicative costs, as well as the realization of other

efficiencies related to the integration of the businesses, may offset incremental transaction and merger-related costs over time, we cannot give any assurance that this net benefit will be achieved in the near term, or at all.

 

The combined company may not be able to realize Pulte’s and Centex’s deferred income tax assets.

 

As of March 31, 2009, Pulte had net deferred tax assets of $1.27 billion for which a $1.27 billion valuation allowance was recorded, while Centex had net deferred tax assets of $1.29 billion for which a $1.29 billion valuation allowance was recorded. The ultimate realization of the deferred tax assets is dependent upon a variety of factors, including taxable income in prior carryback years, future taxable income, tax planning strategies, potential legislative changes and reversals of existing taxable temporary differences.

 

Furthermore, Pulte’s and Centex’s ability to utilize net operating losses, which we refer to as NOLs, built-in losses, which we refer to as BILs, and tax credit carryforwards to offset its future taxable income would be limited if Pulte or Centex were to undergo an “ownership change” within the meaning of Section 382 of the Internal Revenue Code. In general, an “ownership change” occurs whenever the percentage of the stock of a corporation owned by “5-percent shareholders” (within the meaning of Section 382 of the Internal Revenue Code) increases by more than 50 percentage points over the lowest percentage of the stock of such corporation owned by such “5-percent shareholders” at any time over a three-year testing period. If a corporation undergoes an ownership change within the meaning of Section 382 of the Internal Revenue Code, its ability to utilize NOLs, BILs and other tax benefits is subject to an annual limitation.

 

As a result of the merger, Centex will experience an ownership change and, while it is not currently expected, Pulte may also experience an ownership change. To preserve Pulte’s ability to utilize NOLs, BILs and other tax benefits in the future without a Section 382 limitation, Pulte has adopted a shareholder rights plan, which is triggered upon certain transfers of its securities, and has amended its by-laws to prohibit certain transfers of its securities. Notwithstanding the foregoing measures, there can be no assurance that Pulte will not undergo an ownership change within the meaning of Section 382. See “Description of Pulte Capital Stock — Transfer Restrictions” beginning on page 120.

 

Pulte and Centex are, and will continue to be, subject to the risks described in (1) Part I, Item 1A in Pulte’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and (2) Part I, Item 1A in Centex’s Annual Report on Form 10-K for the fiscal year ended March 31, 2009, in each case as filed with the SEC and incorporated by reference into this joint proxy statement/prospectus. See “Additional Information — Where You Can Find More Information” beginning on page 132.

 

This joint proxy statement/prospectus includes “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act. Such statements may include, but are not limited to, statements about the benefits of the proposed transaction, including future financial and operating results, and the combined company’s plans, objectives, expectations and intentions. These 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:

 

 

 

 

 

Additional risks, uncertainties and other factors include those discussed under the heading “Risk Factors” and in documents incorporated by reference into this joint proxy statement/prospectus. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this joint proxy statement/prospectus or, in the case of documents incorporated by reference, as of the date of those documents. Pulte and Centex disclaim any intent or obligation to update any forward-looking statements contained herein.

 

This joint proxy statement/prospectus is being provided to Pulte shareholders as part of a solicitation of proxies by the Pulte board of directors for use at the Pulte special meeting. This joint proxy statement/prospectus provides Pulte shareholders with important information they need to know to be able to vote, or instruct their brokers or other nominees to vote, at the Pulte special meeting.

 

The Pulte special meeting will be held at the Auburn Hills Marriott Pontiac at Centerpoint, located at 3600 Centerpoint Parkway, Pontiac, Michigan, on [     ], 2009, at 10:00 a.m., local time.

 

The Pulte special meeting is being held for the following purposes:

 

 

 

 

 

The Pulte board of directors has unanimously determined that the proposed merger is advisable and in the best interests of Pulte and its shareholders and unanimously recommends that Pulte shareholders vote “FOR” the proposal to approve the issuance of shares in the merger, “FOR” the proposal to approve the charter amendment to increase the number of authorized shares of common stock, “FOR” the proposal to approve the charter amendment to change Pulte’s corporate name and “FOR” the Pulte meeting adjournment proposal. See “The Merger — Recommendation of the Pulte Board of Directors and Its Reasons for the Merger” beginning on page 45.

 

Only holders of record of Pulte common stock at the close of business on the Pulte record date, [     ], 2009, are entitled to notice of and to vote at the Pulte special meeting. As of the Pulte record date, there were [     ] shares of Pulte common stock outstanding and entitled to vote at the special meeting, held by approximately [     ] holders of record. Each holder of Pulte common stock is entitled to one vote for each share of Pulte common stock owned as of the Pulte record date.

 

A complete list of Pulte shareholders will be available for review at the special meeting.

 

A majority of the shares of Pulte common stock issued and outstanding and entitled to vote as of the Pulte record date must be present in person or represented by proxy at the Pulte special meeting to constitute a quorum. A quorum must be present before a vote can be taken on the proposal to approve the issuance of shares in the merger, the proposal to approve the charter amendment to increase the number of authorized shares of common stock, the proposal to approve the charter amendment to change Pulte’s corporate name or any other matter except adjournment or postponement of the meeting due to the absence of a quorum. Abstentions and broker non-votes, if any, which are described below, will be counted as present for purposes of determining the presence of a quorum at the Pulte special meeting. If a quorum is not present with respect to the proposal to approve the issuance of shares in the merger or the proposal to approve the charter amendment to increase the number of authorized shares of common stock or if there are not sufficient votes in

favor of either proposal, Pulte expects that the Pulte special meeting will be adjourned to solicit additional proxies, subject to approval of the Pulte meeting adjournment proposal by the affirmative vote of the holders of a majority of the shares of Pulte common stock present in person or by proxy at the Pulte special meeting and entitled to vote thereon. At any subsequent reconvening of the special meeting, all proxies will be voted in the same manner as the proxies would have been voted at the original convening of the special meeting, except for any proxies that have been effectively revoked or withdrawn prior to the subsequent meeting.

 

In accordance with NYSE listing requirements, the approval by Pulte shareholders of the proposal to approve the issuance of shares in the merger requires the approval of a majority of the votes cast on the proposal, provided that the total votes cast on this proposal represent over 50% of the outstanding shares of Pulte common stock entitled to vote on this proposal. Votes “for,” votes “against” and abstentions count as votes cast, while broker non-votes do not count as votes cast for this purpose. All outstanding shares of Pulte common stock, including broker non-votes, count as shares entitled to vote. Thus, the total sum of votes “for,” plus votes “against,” plus abstentions, which we refer to as the NYSE Votes Cast, must be greater than 50% of the total outstanding shares of Pulte common stock. The number of votes “for” the proposal must be greater than 50% of the NYSE Votes Cast.

 

In accordance with the MBCA, approval of the proposal to approve the charter amendment to increase the number of authorized shares of common stock and the proposal to approve the charter amendment to change Pulte’s corporate name each requires the affirmative vote of a majority of the outstanding shares entitled to vote on the amendment.

 

In accordance with the MBCA and Pulte’s by-laws, approval of the Pulte meeting adjournment proposal requires the affirmative vote of the holders of a majority of the shares of Pulte common stock present in person or represented by proxy at the Pulte special meeting and entitled to vote thereon.

 

As of the Pulte record date for the special meeting, the directors and executive officers of Pulte as a group owned and were entitled to vote approximately [     ] shares of Pulte common stock, or approximately [     ]% of the outstanding shares of Pulte on that date.

 

In connection with the Merger Agreement, the following directors and officers of Pulte entered into voting agreements with Centex, pursuant to which they have agreed to vote their shares of Pulte in support of the transaction: William J. Pulte, Pulte’s founder and current chairman and a director, Mr. Dugas, Roger A. Cregg, executive vice president and chief financial officer of Pulte, Steven C. Petruska, executive vice president and chief operating officer of Pulte, and Brian P. Anderson, Debra J. Kelly-Ennis, David N. McCammon, Bernard W. Reznicek and William B. Smith, each a director of Pulte. Alan E. Schwartz, a director of Pulte until his retirement as a director of Pulte upon the expiration of his term at the 2009 annual meeting of shareholders, has also entered into such a voting agreement with Centex. As of the Pulte record date, these directors (including Mr. Schwartz) and officers collectively owned and were entitled to vote approximately [          ] shares of Pulte common stock, or approximately [     ]% of the outstanding shares of Pulte. All of Pulte’s directors and executive officers entitled to vote at the Pulte special meeting, including those that have not entered into voting agreements with Centex, have evidenced their intent to vote for the proposal to approve the issuance of shares in the merger, the proposal to approve the charter amendment to increase the number of authorized shares of common stock, the proposal to approve the charter amendment to change Pulte’s corporate name and the Pulte meeting adjournment proposal.

 

Holders of Pulte common stock as of the Pulte record date may vote by proxy or in person at the Pulte special meeting. Votes cast by proxy or in person at the Pulte special meeting will be tabulated and certified by Pulte’s transfer agent.

Voting in Person

 

Pulte shareholders who plan to attend the Pulte special meeting and wish to vote in person will be given a ballot at the special meeting. Please note, however, that Pulte shareholders who hold their shares in “street name,” which means such shares are held of record by a broker, bank or other nominee, and who wish to vote in person at the Pulte special meeting, must bring to the special meeting a proxy from the record holder of the shares authorizing such Pulte shareholder to vote at the Pulte special meeting.

 

Voting by Proxy

 

The vote of each Pulte shareholder is very important. Accordingly, Pulte shareholders who hold their shares as a record holder should complete, sign and return the enclosed proxy card whether or not they plan to attend the Pulte special meeting in person. Pulte shareholders should vote their proxy even if they plan to attend the Pulte special meeting. Pulte shareholders can always change their vote at the special meeting. Voting instructions are included on the enclosed proxy card. If a Pulte shareholder properly gives his or her proxy and submits it to Pulte in time to vote, one of the individuals named as such Pulte shareholder’s proxy will vote the shares as such Pulte shareholder has directed. A proxy card is enclosed for use by Pulte shareholders.

 

The method of voting by proxy differs for shares held as a record holder and shares held in “street name.” If a Pulte shareholder holds shares of Pulte common stock as a record holder, he or she may vote by completing, dating and signing the enclosed proxy card and promptly returning it in the enclosed, pre-addressed, postage-paid envelope or otherwise mailing it to Pulte, or by submitting a proxy over the Internet or by telephone by following the instructions on the enclosed proxy card. If a Pulte shareholder holds shares of Pulte common stock in street name, which means such shares are held of record by a broker, bank or nominee, the Pulte shareholder will receive instructions from his or her broker, bank or other nominee that the Pulte shareholder must follow in order to vote his or her shares. A Pulte shareholder’s broker, bank or nominee may allow such Pulte shareholder to deliver voting instructions over the Internet or by telephone. Pulte shareholders who hold their shares in street name should refer to the voting instructions from their broker, bank or nominee that accompany this joint proxy statement/prospectus.

 

All properly signed proxies that are received prior to the Pulte special meeting and that are not revoked will be voted at the special meeting according to the instructions indicated on the proxies or, if no direction is indicated, they will be voted “FOR” the proposal to approve the issuance of shares in the merger, “FOR” the proposal to approve the charter amendment to increase the number of authorized shares of common stock, “FOR” the proposal to approve the charter amendment to change Pulte’s corporate name and “FOR” the Pulte meeting adjournment proposal.

 

Revocation of Proxy

 

A Pulte shareholder may revoke his or her proxy at any time before it is voted at the Pulte special meeting by taking any of the following actions:

 

 

If a Pulte shareholder’s shares are held in “street name,” he or she may change his or her vote by submitting new voting instructions to his or her broker, bank or other nominee. Pulte shareholders must contact their broker, bank or other nominee to find out how to do so.

 

Written notices of revocation and other communications with respect to the revocation of Pulte proxies should be addressed to:

 

Pulte Homes, Inc.
100 Bloomfield Hills Parkway, Suite 300
Bloomfield Hills, Michigan 48304
Attn.: Corporate Secretary

 

For purposes of the Pulte shareholder vote, an abstention, which occurs when a shareholder attends a meeting, either in person or by proxy, but abstains from voting, will have the same effect as voting against the proposal to approve the issuance of shares in the merger, the proposal to approve the charter amendment to increase the number of authorized shares of common stock and the proposal to approve the charter amendment to change Pulte’s corporate name, but will not affect the Pulte meeting adjournment proposal.

 

Under the listing requirements of the NYSE, brokers who hold shares of Pulte common stock in “street name” for a beneficial owner of those shares typically have the authority to vote in their discretion on “routine” proposals when they have not received instructions from beneficial owners. However, brokers are not allowed to exercise their voting discretion with respect to the approval of matters that the NYSE determines to be “non-routine,” such as approval of the issuance of shares of Pulte common stock pursuant to the Merger Agreement, the proposal to approve the charter amendment to increase the number of authorized shares of common stock or the proposal to approve the charter amendment to change Pulte’s corporate name, without specific instructions from the beneficial owner. Broker non-votes are shares held by a broker or other nominee that are represented at the meeting, but with respect to which the broker or nominee is not instructed by the beneficial owner of such shares to vote on the particular proposal and the broker does not have discretionary voting power on this proposal. If a Pulte shareholder’s broker holds such shareholder’s Pulte common stock in “street name,” the broker will vote such shareholder’s shares only if the shareholder provides instructions on how to vote by filling out the voter instruction form sent to the shareholder by his or her broker with this joint proxy statement/prospectus. It is expected that brokers and other nominees will not have discretionary authority to vote on the proposal to approve the issuance of shares in the merger, the proposal to approve the charter amendment to increase the number of authorized shares of common stock, the proposal to approve the charter amendment to change Pulte’s corporate name or the Pulte meeting adjournment proposal.

 

Pulte is soliciting proxies for the Pulte special meeting from Pulte shareholders. Pulte will bear the entire cost of soliciting proxies from Pulte shareholders, except that Pulte and Centex have each agreed to share equally all expenses incurred in connection with the printing of this joint proxy statement/prospectus and related proxy materials. In addition to the solicitation of proxies by mail, Pulte will request that brokers, banks and other nominees send proxies and proxy materials to the beneficial owners of Pulte common stock held by them and secure their voting instructions, if necessary. Pulte will reimburse those record holders for their reasonable expenses. Pulte has also made arrangements with D.F. King & Co., Inc. to assist it in soliciting proxies, and has agreed to pay D.F. King’s reasonable and customary charges for such services, currently estimated not to exceed $12,500, plus expenses. Pulte also may use several of its regular employees, who will not be specially compensated, to solicit proxies from Pulte shareholders, either personally or by telephone or electronic mail.

 

Pulte does not expect that any matter other than the proposals presented in this joint proxy statement/prospectus will be brought before the Pulte special meeting. However, if other matters incident to the conduct

of the special meeting are properly presented at the special meeting, the persons named as proxies will vote in accordance with their best judgment with respect to those matters.

 

An adjournment may be made from time to time by approval of the holders of shares representing a majority of the votes present in person or by proxy at the special meeting, whether or not a quorum exists, without further notice other than by an announcement made at the special meeting.