Supplemental Guarantor Information

9 Months Ended

Sep. 30, 2011

Supplemental Guarantor Information [Abstract]

17.

Supplemental Guarantor Information

The Company's senior notes are fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by the following subsidiaries (collectively, the "Guarantor Subsidiaries"), which are 100%-owned subsidiaries of the Company.

•

M.D.C. Land Corporation

•

RAH of Florida, Inc.

•

Richmond American Construction, Inc.

•

Richmond American Homes of Arizona, Inc.

•

Richmond American Homes of Colorado, Inc.

•

Richmond American Homes of Delaware, Inc.

•

Richmond American Homes of Florida, LP

•

Richmond American Homes of Illinois, Inc.

•

Richmond American Homes of Maryland, Inc.

•

Richmond American Homes of Nevada, Inc.

•

Richmond American Homes of New Jersey, Inc.

•

Richmond American Homes of Pennsylvania, Inc.

•

Richmond American Homes of Utah, Inc.

•

Richmond American Homes of Virginia, Inc.

Subsidiaries that do not guarantee the Company's senior notes (collectively, the "Non-Guarantor Subsidiaries") primarily include:

•

American Home Insurance

•

American Home Title

•

HomeAmerican

•

StarAmerican

•

Allegiant

•

Richmond American Homes of West Virginia, Inc.

•

Richmond American Homes of Washington, Inc.

The Company has determined that separate, full financial statements of the Guarantor Subsidiaries would not be material to investors and, accordingly, supplemental financial information for the Guarantor Subsidiaries is presented.

M.D.C. HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements (Continued)

Supplemental Condensed Combining Balance Sheet

September 30, 2011

(In thousands)


	MDC			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminating Entries			Consolidated MDC
Assets
Cash and cash equivalents	$	532,302		$	2,845	$	32,354	$	-		$	567,501
Marketable securities		503,828			-		31,666		-			535,494
Restricted cash		-			682		-		-			682
Receivables		4,645			12,499		4,709		(2,439	)		19,414
Mortgage loans held-for-sale, net		-			-		42,301		-			42,301
Inventories, net
Housing completed or under construction		-			318,737		14,613		-			333,350
Land and land under development		-			498,830		18,507		-			517,337
Investment in subsidiaries		123,615			-		-		(123,615	)		-
Other assets, net		48,619			38,722		12,390		(841	)		98,890

Total Assets	$	1,213,009		$	872,315	$	156,540	$	(126,895	)	$	2,114,969


Liabilities
Accounts payable and related party liabilities	$	2,804		$	24,731	$	2,492	$	(2,662	)	$	27,365
Accrued liabilities		69,904			54,611		66,133		(618	)		190,030
Advances and notes payable to parent and subsidiaries		(746,565	)		732,473		14,092		-			- -
Mortgage repurchase facility		-			-		10,708		-			10,708
Senior notes, net		1,006,656			-		-		-			1,006,656

Total Liabilities		332,799			811,815		93,425		(3,280	)		1,234,759


Stockholders' Equity		880,210			60,500		63,115		(123,615	)		880,210

Total Liabilities and Stockholders' Equity	$	1,213,009		$	872,315	$	156,540	$	(126,895	)	$	2,114,969

M.D.C. HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements (Continued)

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 under development		-			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

M.D.C. HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements (Continued)

Supplemental Condensed Combining Statements of Operations

Three Months Ended September 30, 2011

(In thousands)


	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Revenue

Home sales revenue	$	-		$	193,128		$	13,154		$	(1,396	)	$	204,886
Land sales and other revenue		-			923			5,551			-			6,474
Equity in (loss) income of subsidiaries		(4,022	)		-			-			4,022			-

Total revenue		(4,022	)		194,051			18,705			2,626			211,360

Costs and Expenses

Home cost of sales		-			161,027			10,812			(1,396	)		170,443
Asset impairments		-			4,692			-			-			4,692
Marketing and commission expenses		-			16,559			919			-			17,478
General and administrative and other expenses		15,120			15,191			8,407			-			38,718

Total operating costs and expenses		15,120			197,469			20,138			(1,396	)		231,331

Loss from operations		(19,142	)		(3,418	)		(1,433	)		4,022			(19,971	)
Other (expense) income		(14,987	)		35			734			-			(14,218	)

Loss before income taxes		(34,129	)		(3,383	)		(699	)		4,022			(34,189	)
Benefit from (provision for) income taxes		2,419			(1	)		61			-			2,479

Net loss	$	(31,710	)	$	(3,384	)	$	(638	)	$	4,022		$	(31,710	)

M.D.C. HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements (Continued)

Supplemental Condensed Combining Statements of Operations

Three Months Ended September 30, 2010

(In thousands)


	MDC			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Revenue

Home sales revenue	$	-		$	219,743	$	-		$	(3,242	)	$	216,501
Land sales and other revenue		-			1,249		7,931			-			9,180
Equity in (loss) income of subsidiaries		9,066			-		-			(9,066	)		-

Total revenue		9,066			220,992		7,931			(12,308	)		225,681

Costs and Expenses

Home cost of sales		-			173,963		478			(3,242	)		171,199
Asset impairments		-			3,718		-			-			3,718
Marketing and commission expenses		-			19,269		-			-			19,269
General and administrative and other expenses		18,530			13,078		9,296			-			40,904

Total operating costs and expenses		18,530			210,028		9,774			(3,242	)		235,090

(Loss) income from operations		(9,464	)		10,964		(1,843	)		(9,066	)		(9,409	)
Other (expense) income		(2,169	)		50		934			-			(1,185	)

(Loss) income before income taxes		(11,633	)		11,014		(909	)		(9,066	)		(10,594	)
Benefit from (provision for) income taxes		1,394			753		(1,792	)		-			355

Net (loss) income	$	(10,239	)	$	11,767	$	(2,701	)	$	(9,066	)	$	(10,239	)

M.D.C. HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements (Continued)

Supplemental Condensed Combining Statements of Operations

Nine Months Ended September 30, 2011

(In thousands)


	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Revenue

Home sales revenue	$	-		$	552,579		$	26,937		$	(5,084	)	$	574,432
Land sales and other revenue		-			4,314			18,046			-			22,360
Equity in (loss) income of subsidiaries		(23,295	)		-			-			23,295			-

Total revenue		(23,295	)		556,893			44,983			18,211			596,792

Costs and Expenses

Home cost of sales		-			472,522			23,083			(5,084	)		490,521
Asset impairments		-			14,090			-			-			14,090
Marketing and commission expenses		-			48,646			1,785			-			50,431
General and administrative and other expenses		46,139			49,620			18,635			-			114,394

Total operating costs and expenses		46,139			584,878			43,503			(5,084	)		669,436

(Loss) income from operations		(69,434	)		(27,985	)		1,480			23,295			(72,644	)
Other (expense) income		(17,515	)		118			2,345			-			(15,052	)

(Loss) income before income taxes		(86,949	)		(27,867	)		3,825			23,295			(87,696	)
Benefit from (provision for) income taxes		7,380			2,583			(1,836	)		-			8,127

Net (loss) income	$	(79,569	)	$	(25,284	)	$	1,989		$	23,295		$	(79,569	)

M.D.C. HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements (Continued)

Supplemental Condensed Combining Statements of Operations

Nine Months Ended September 30, 2010

(In thousands)


	MDC			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Revenue

Home sales revenue	$	-		$	680,398	$	-		$	(11,678	)	$	668,720
Land sales and other revenue		-			7,673		22,696			-			30,369
Equity in (loss) income of subsidiaries		26,727			-		-			(26,727	)		-

Total revenue		26,727			688,071		22,696			(38,405	)		699,089

Costs and Expenses

Home cost of sales		-			546,888		441			(11,678	)		535,651
Asset impairments		-			3,718		-			-			3,718
Marketing and commission expenses		-			54,544		-			-			54,544
General and administrative and other expenses		55,319			57,529		19,041			-			131,889

Total operating costs and expenses		55,319			662,679		19,482			(11,678	)		725,802

(Loss) income from operations		(28,592	)		25,392		3,214			(26,727	)		(26,713	)
Other (expense) income		(10,799	)		126		1,851			-			(8,822	)

(Loss) income before income taxes		(39,391	)		25,518		5,065			(26,727	)		(35,535	)
Benefit from (provision for) income taxes		4,595			530		(4,386	)		-			739

Net (loss) income	$	(34,796	)	$	26,048	$	679		$	(26,727	)	$	(34,796	)

M.D.C. HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements (Continued)

Supplemental Condensed Combining Statements of Cash Flows

Nine Months Ended September 30, 2011

(In thousands)


	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Net cash (used in) provided by operating activities	$	(39,482	)	$	(77,129	)	$	12,567		$	23,301		$	(80,743	)

Net cash provided by (used in) investing activities		413,999			(20	)		(32,817	)		-			381,162

Financing activities
(Advances to) payments from subsidiaries		(86,833	)		75,707			34,427			(23,301	)		-
Extinguishment of senior notes		(254,903	)		-			-			-			(254,903	)
Mortgage repurchase facility, net		-			-			(14,726	)		-			(14,726	)
Dividend payments		(35,560	)		-			-			-			(35,560	)
Proceeds from exercise of stock options		46			-			-			-			46

Net cash (used in) provided by financing activities		(377,250	)		75,707			19,701			(23,301	)		(305,143	)

Net decrease in cash and cash equivalents		(2,733	)		(1,442	)		(549	)		-			(4,724	)
Cash and cash equivalents
Beginning of period		535,035			4,287			32,903			-			572,225

End of period	$	532,302		$	2,845		$	32,354		$	-		$	567,501

M.D.C. HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements (Continued)

Supplemental Condensed Combining Statements of Cash Flows

Nine Months Ended September 30, 2010

(In thousands)


	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Net cash provided by (used in) operating activities	$	70,017		$	(235,638	)	$	11,456		$	16,574		$	(137,591	)

Net cash used in investing activities		(566,995	)		(1,029	)		(29,102	)		-			(597,126	)

Financing activities
(Advances to) payments from subsidiaries		(269,877	)		238,312			48,139			(16,574	)		-
Proceeds from issuance of senior notes, net		242,288			-			-			-			242,288
Mortgage repurchase facility, net		-			-			(17,960	)		-			(17,960	)
Dividend payments		(35,355	)		-			-			-			(35,355	)
Proceeds from exercise of stock options		53			-			-			-			53

Net cash (used in) provided by financing activities		(62,891	)		238,312			30,179			(16,574	)		189,026

Net (decrease) increase in cash and cash equivalents		(559,869	)		1,645			12,533			-			(545,691	)
Cash and cash equivalents
Beginning of period		1,210,123			3,258			20,871			-			1,234,252

End of period	$	650,254		$	4,903		$	33,404		$	-		$	688,561