Supplemental Guarantor Information (Tables)

6 Months Ended

Jun. 30, 2011

Supplemental Guarantor Information

Supplemental Condensed Combining Balance Sheet

Supplemental Condensed Combining Balance Sheet

June 30, 2011

(In thousands)

	MDC			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminating Entries			Consolidated MDC
Assets
Cash and cash equivalents	$	718,010		$	3,022	$	34,803	$	-		$	755,835
Marketable securities		615,892			-		31,003		-			646,895
Restricted cash		-			604		-		-			604
Receivables		8,572			5,666		4,877		(2,657	)		16,458
Mortgage loans held-for-sale, net		-			-		39,200		-			39,200
Inventories, net
Housing completed or under construction		-			319,951		16,563		-			336,514
Land and land underdevelopment		-			514,634		9,600		-			524,234
Investment in subsidiaries		122,483			-		-		(122,483	)		-
Other assets, net		48,334			42,106		11,223		(1,099	)		100,564
Total Assets	$	1,513,291		$	885,983	$	147,269	$	(126,239	)	$	2,420,304
Liabilities
Accounts payable and related party liabilities	$	2,768		$	26,106	$	3,008	$	(2,657	)	$	29,225
Accrued liabilities		85,099			56,992		64,632		(1,099	)		205,624
Advances and notes payable to parent and subsidiaries		(751,043	)		744,688		6,355		-			-
Mortgage repurchase facility		-			-		8,988		-			8,988
Senior notes, net		1,243,273			-		-		-			1,243,273
Total Liabilities		580,097			827,786		82,983		(3,756	)		1,487,110
Stockholders' Equity		933,194			58,197		64,286		(122,483	)		933,194
Total Liabilities and Stockholders' Equity	$	1,513,291		$	885,983	$	147,269	$	(126,239	)	$	2,420,304

Supplemental Condensed Combining Balance Sheet

December 31, 2010

(In thousands)

	MDC			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminating Entries			Consolidated MDC
Assets
Cash and cash equivalents	$	535,035		$	4,287	$	32,903	$	-		$	572,225
Marketable securities		938,471			-		30,258		-			968,729
Restricted cash		-			420		-		-			420
Receivables		14,402			8,071		194		(2,657	)		20,010
Mortgage loans held-for-sale, net		-			-		65,114		-			65,114
Inventories, net
Housing completed or under construction		-			372,422		-		-			372,422
Land and land underdevelopment		-			415,237		-		-			415,237
Investment in subsidiaries		110,065			-		-		(110,065	)		-
Other assets, net		88,267			42,288		3,057		-			133,612
Total Assets	$	1,686,240		$	842,725	$	131,526	$	(112,722	)	$	2,547,769
Liabilities
Accounts payable and related party liabilities	$	2,747		$	34,553	$	465	$	(2,657	)	$	35,108
Accrued liabilities		130,960			65,622		64,147		-			260,729
Advances and notes payable to parent and subsidiaries		(673,965	)		671,190		2,775		-			-
Mortgage repurchase facility		-			-		25,434		-			25,434
Senior notes, net		1,242,815			-		-		-			1,242,815
Total Liabilities		702,557			771,365		92,821		(2,657	)		1,564,086
Stockholders' Equity		983,683			71,360		38,705		(110,065	)		983,683
Total Liabilities and Stockholders' Equity	$	1,686,240		$	842,725	$	131,526	$	(112,722	)	$	2,547,769

Supplemental Condensed Combining Statements Of Operations

Condensed Combining Statements of Operations

Three Months Ended June 30, 2011

(In thousands)

	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Revenue
Home sales revenue	$	-		$	193,554		$	13,783		$	(1,174	)	$	206,163
Land sales and other revenue		-			2,730			6,792			-			9,522
Equity in (loss) income of subsidiaries		(13,221	)		-			-			13,221			-
Total revenue		(13,221	)		196,284			20,575			12,047			215,685
Costs and Expenses
Home cost of sales		-			168,000			12,271			(1,174	)		179,097
Asset impairments		-			9,119			-			-			9,119
Marketing and commission expenses		-			16,487			866			-			17,353
General and administrative and other expenses		16,251			18,672			5,530			-			40,453
Total operating costs and expenses		16,251			212,278			18,667			(1,174	)		246,022
(Loss) income from operations		(29,472	)		(15,994	)		1,908			13,221			(30,337	)
Other (expense) income		(337	)		41			830			-			534
(Loss) income before income taxes		(29,809	)		(15,953	)		2,738			13,221			(29,803	)
Benefit from (provision for) income taxes		1,829			1,208			(1,214	)		-			1,823
Net (loss) income	$	(27,980	)	$	(14,745	)	$	1,524		$	13,221		$	(27,980	)

Supplemental Condensed Combining Statements of Operations

Three Months Ended June 30, 2010

(In thousands)

	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Revenue
Home sales revenue	$	-		$	316,809		$	-		$	(5,533	)	$	311,276
Land sales and other revenue		-			5,910			9,144			-			15,054
Equity in (loss) income of subsidiaries		15,307			-			-			(15,307	)		-
Total revenue		15,307			322,719			9,144			(20,840	)		326,330
Costs and Expenses
Home cost of sales		-			260,614			(19	)		(5,533	)		255,062
Asset impairments		-			-			-			-			-
Marketing and commission expenses		-			23,086			-			-			23,086
General and administrative and other expenses		18,607			25,828			5,656			-			50,091
Total operating costs and expenses		18,607			309,528			5,637			(5,533	)		328,239
(Loss) income from operations		(3,300	)		13,191			3,507			(15,307	)		(1,909	)
Other (expense) income		(2,422	)		28			604			-			(1,790	)
(Loss) income before income taxes		(5,722	)		13,219			4,111			(15,307	)		(3,699	)
Benefit from (provision for) income taxes		2,038			(245	)		(1,778	)		-			15
Net (loss) income	$	(3,684	)	$	12,974		$	2,333		$	(15,307	)	$	(3,684	)

Supplemental Condensed Combining Statements of Operations

Six Months Ended June 30, 2011

(In thousands)

Revenue	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Home sales revenue	$	-		$	359,451		$	13,783		$	(3,688	)	$	369,546
Land sales and other revenue		-			3,391			12,495			-			15,886
Equity in (loss) income of subsidiaries		(19,273	)		-			-			19,273			-
Total revenue		(19,273	)		362,842			26,278			15,585			385,432
Costs and Expenses
Home cost of sales		-			311,495			12,271			(3,688	)		320,078
Asset impairments		-			9,398			-			-			9,398
Marketing and commission expenses		-			32,087			866			-			32,953
General and administrative and other expenses		31,019			34,429			10,228			-			75,676
Total operating costs and expenses		31,019			387,409			23,365			(3,688	)		438,105
(Loss) income from operations		(50,292	)		(24,567	)		2,913			19,273			(52,673	)
Other (expense) income		(2,528	)		83			1,611			-			(834	)
(Loss) income before income taxes		(52,820	)		(24,484	)		4,524			19,273			(53,507	)
Benefit from (provision for) income taxes		4,961			2,584			(1,897	)		-			5,648
Net (loss) income	$	(47,859	)	$	(21,900	)	$	2,627		$	19,273		$	(47,859	)

Supplemental Condensed Combining Statements of Operations

Six Months Ended June 30, 2010

(In thousands)

	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Revenue
Home sales revenue	$	-		$	460,655		$	-		$	(8,436	)	$	452,219
Land sales and other revenue		-			6,424			14,765			-			21,189
Equity in (loss) income of subsidiaries		17,661			-			-			(17,661	)		-
Total revenue		17,661			467,079			14,765			(26,097	)		473,408
Costs and Expenses
Home cost of sales		-			372,925			(37	)		(8,436	)		364,452
Asset impairments		-			-			-			-			-
Marketing and commission expenses		-			35,275			-			-			35,275
General and administrative and other expenses		36,789			44,451			9,745			-			90,985
Total operating costs and expenses		36,789			452,651			9,708			(8,436	)		490,712
(Loss) income from operations		(19,128	)		14,428			5,057			(17,661	)		(17,304	)
Other (expense) income		(8,630	)		76			917			-			(7,637	)
(Loss) income before income taxes		(27,758	)		14,504			5,974			(17,661	)		(24,941	)
Benefit from (provision for) income taxes		3,201			(223	)		(2,594	)		-			384
Net (loss) income	$	(24,557	)	$	14,281		$	3,380		$	(17,661	)	$	(24,557	)

Supplemental Condensed Combining Statements Of Cash Flows

Supplemental Condensed Combining Statements of Cash Flows

Six Months Ended June 30, 2011

(In thousands)

	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Net cash (used in) provided by operating activities	$	(25,813	)	$	(83,489	)	$	20,772		$	19,273		$	(69,257	)
Net cash provided by (used in) investing activities		321,930			(11	)		(28,960	)		-			292,959
Financing activities
(Advances to) payments from subsidiaries		(89,496	)		82,235			26,534			(19,273	)		-
Mortgage repurchase facility		-			-			(16,446	)		-			(16,446	)
Dividend payments		(23,692	)		-			-			-			(23,692	)
Proceeds from exercise of stock options		46			-			-			-			46
Net cash (used in) provided by financing activities		(113,142	)		82,235			10,088			(19,273	)		(40,092	)
Net increase (decrease) in cash and cash equivalents		182,975			(1,265	)		1,900			-			183,610
Cash and cash equivalents
Beginning of period		535,035			4,287			32,903			-			572,225
End of period	$	718,010		$	3,022		$	34,803		$	-		$	755,835

Supplemental Condensed Combining Statements of Cash Flows

Six Months Ended June 30, 2010

(In thousands)

	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Net cash provided by (used in) operating activities	$	71,574		$	(225,398	)	$	(7,449	)	$	(17,661	)	$	(178,934	)
Net cash used in investing activities		(588,283	)		(454	)		(29,410	)		-			(618,147	)
Financing activities
(Advances to) payments from subsidiaries		(256,944	)		228,079			11,204			17,661			-
Proceeds from issuance of senior notes, net		242,288			-			-			-			242,288
Mortgage repurchase facility		-			-			36,190			-			36,190
Dividend payments		(23,570	)		-			-			-			(23,570	)
Proceeds from exercise of stock options		53			-			-			-			53
Net cash (used in) provided by financing activities		(38,173	)		228,079			47,394			17,661			254,961
Net (decrease) increase in cash and cash equivalents		(554,882	)		2,227			10,535			-			(542,120	)
Cash and cash equivalents
Beginning of period		1,210,123			3,258			20,871			-			1,234,252
End of period	$	655,241		$	5,485		$	31,406		$	-		$	692,132