Centex 8-K Unaudited Pro Forma Condensed Consolidated Financial Statements

Exhibit 99.1

Unaudited Pro Forma Condensed Consolidated Financial Statements

The following unaudited condensed consolidated balance sheet as of December 31, 2005 and the unaudited condensed consolidated statements of earnings for the nine months ended December 31, 2005 and the year ended March 31, 2005, have been prepared to present the consolidated financial position and the consolidated results of operations of the Company as if the planned sale of Centex Home Equity Company, LLC (“CHEC”) had occurred on December 31, 2005 for the unaudited pro forma condensed consolidated balance sheet and at the beginning of each period presented for the unaudited condensed consolidated statements of operations. In addition, in September 2005, the Company sold its international homebuilding operations. As a result of the sale, international homebuilding’s results of operations for the nine month period ended December 31, 2005, have previously been reclassified and reported as discontinued operations. International homebuilding’s results of operations are presented as discontinued operations in the accompanying unaudited pro forma condensed consolidated statement of earnings for the year ended March 31, 2005.

These statements are not indicative of the financial position or results of operations of the Company as of December 31, 2005 or for the nine months ended December 31, 2005 or the year ended March 31, 2005, nor are they indicative of future results. In addition, these pro forma financial statements do not reflect changes that may occur as a result of activities subsequent to December 31, 2005, which may impact the planned disposition of CHEC.

For pro forma balance sheet presentation purposes, the receipt of estimated proceeds from the disposition of CHEC is included in cash. The actual cash proceeds to be received on the sale of CHEC will be based in part on CHEC’s net assets at the closing date and may differ from the amount presented in the pro forma financial information.

Centex Corporation and Subsidiaries
Pro Forma Condensed Consolidated Balance Sheets
December 31, 2005
(Dollars in thousands)

	As Reported(a)			Disposition(s)			Pro Forma
Assets
Cash and Cash Equivalents	$	78,900		$	602,773	(b)	$	681,673
Restricted Cash		469,113			(328,818	)(b)		140,295
Receivables -
Residential Mortgage Loans Held for Investment, net		8,758,681			(8,758,681	)(b)		—
Residential Mortgage Loans Held for Sale		1,727,631			—			1,727,631
Construction Contracts		307,545			—			307,545
Trade, including Notes		435,310			(163,973	)(b)		271,337
Inventories -
Housing Projects		8,292,195			—			8,292,195
Land Held for Development and Sale		381,100			—			381,100
Land Held Under Option Agreements Not Owned		552,984			—			552,984
Other		10,405			—			10,405
Investments -
Joint Ventures and Other		344,282			—			344,282
Property and Equipment, net		162,032			(18,424	)(b)		143,608
Other Assets -
Deferred Income Taxes		348,523			(134,012	)(b)		214,511
Goodwill		218,369			—			218,369
Mortgage Securitization Residual Interest		64,582			(64,582	)(b)		—
Deferred Charges and Other, net		272,837			(52,700	)(b)		220,137
	$	22,424,489		$	(8,918,417	)(b)	$	13,506,072
Liabilities and Stockholders’ Equity
Accounts Payable	$	824,883		$	(208	)(b)	$	824,675
Accrued Liabilities		1,620,296			(92,373	)(b)		1,527,923
Debt -
Centex		4,106,579			—			4,106,579
Financial Services		10,583,348			(8,919,150	)(b)		1,664,198
Commitments and Contingencies
Minority Interests		538,911			—			538,911
Stockholders’ Equity -
Preferred Stock, Authorized 5,000,000 Shares, None Issued		—			—			—
Common Stock, $.25 Par Value; Authorized 300,000,000 Shares; Outstanding 123,786,142		33,956			—			33,956
Capital in Excess of Par Value		532,440			—			532,440
Unamortized Value of Deferred Compensation		(49	)		—			(49	)
Retained Earnings		4,864,468			101,043			4,965,511
Treasury Stock, at Cost; 12,038,622		(688,017	)		—			(688,017	)
Accumulated Other Comprehensive Income		7,674			(7,729	)(b)		(55	)
Total Stockholders’ Equity		4,750,472			93,314			4,843,786
	$	22,424,489		$	(8,918,417	)	$	13,506,072

See Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.

Centex Corporation and Subsidiaries
Pro Forma Condensed Consolidated Statements of Consolidated Earnings
(Dollars in thousands, except per share data)

	For the Nine Months Ended December 31, 2005
	As Reported(a)		Disposition(s)			Pro Forma
Revenues
Home Building	$	8,291,236	$	—		$	8,291,236
Financial Services		956,145		(612,420	)(c)		343,725
Construction Services		1,160,904		—			1,160,904
Other, including Intersegment Eliminations		53,570		—			53,570
		10,461,855		(612,420	)		9,849,435
Costs and Expenses
Home Building		7,054,047		—			7,054,047
Financial Services		800,735		(520,553	)(c)		280,182
Construction Services		1,148,023		—			1,148,023
Other, including Intersegment Eliminations		61,776		—			61,776
Corporate General and Administrative		70,935		—			70,935
Interest Expense		8,705		—			8,705
		9,144,221		(520,553	)		8,623,668
Earnings from Unconsolidated Entities		67,585		—			67,585
Earnings from Continuing Operations Before Income Taxes		1,385,219		(91,867	)(c)		1,293,352
Income Taxes		490,498		(42,396	)(c)		448,102
Earnings from Continuing Operations	$	894,721	$	(49,471	)	$	845,250
Basic Earnings Per Share
Continuing Operations	$	6.99				$	6.62
Diluted Earnings Per Share
Continuing Operations	$	6.68				$	6.31
Average Shares Outstanding
Basic		127,933,898					127,933,898
Dilutive Securities:
Options		5,578,959					5,578,959
Other		441,420					441,420
Diluted		133,954,277					133,954,277

Centex Corporation and Subsidiaries
Pro Forma Condensed Statements of Consolidated Earnings
(Dollars in thousands, except per share data)

	For the Year Ended March 31, 2005
	As Reported(d)		Disposition(s)			Pro Forma
Revenues
Home Building	$	9,860,998	$	(501,257	)(e)	$	9,359,741
Financial Services		1,107,206		(685,553	)(e)		421,653
Construction Services		1,738,603		—			1,738,603
Other, including Intersegment Eliminations		152,888		—			152,888
		12,859,695		(1,186,810	)		11,672,885
Costs and Expenses
Home Building		8,484,461		(434,752	)(e)		8,049,709
Financial Services		902,846		(577,165	)(e)		325,681
Construction Services		1,717,025		—			1,717,025
Other, including Intersegment Eliminations		147,322		—			147,322
Corporate General and Administrative		82,877		—			82,877
Interest Expense		22,209		(2,861	)(e)		19,348
		11,356,740		(1,014,778	)		10,341,962
Earnings from Unconsolidated Entities		70,814		(82	)(e)		70,732
Earnings from Continuing Operations Before Income Taxes		1,573,769		(172,114	)(e)		1,401,655
Income Taxes		562,405		(60,292	)(e)		502,113
Earnings from Continuing Operations	$	1,011,364	$	(111,822	)	$	899,542
Basic Earnings Per Share
Continuing Operations	$	8.08				$	7.19
Diluted Earnings Per Share
Continuing Operations	$	7.64				$	6.79
Average Shares Outstanding
Basic		125,226,596					125,226,596
Dilutive Securities:
Options		6,725,838					6,725,838
Other		445,527					445,527
Diluted		132,397,961					132,397,961

Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements

Pro forma adjustments giving effect to the planned disposition of CHEC and the disposition of the international homebuilding operations are as follows:

(a)	Historical activity as reported in the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2005.
(b)	To eliminate CHEC’s assets and liabilities as a result of the planned disposition after adjusting for transaction-related cash flows as follows: (1) the receipt of estimated cash proceeds (based upon CHEC’s net assets at December 31, 2005 and the estimated premium), and (2) cash received on payment of intercompany accounts. The actual cash proceeds to be received on the sale will be based upon CHEC’s net assets as of the closing date plus a premium to be calculated in accordance with the Securities Purchase Agreement.
(c)	To reflect the elimination of CHEC historical results of operations.
(d)	Historical activity as reported in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2005.
(e)	To reflect the elimination of CHEC and international homebuilding historical results of operations.