16.

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.

Supplemental Condensed Combining Balance Sheet

December 31, 2011

(In thousands)


	MDC			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminating Entries			Consolidated MDC
ASSETS
Cash and cash equivalents	$	313,566		$	2,771	$	27,024	$	-		$	343,361
Marketable securities		485,434					34,509		-			519,943
Restricted cash		-			667		-		-			667
Home sales and other receivables		8,368			12,740		3,261		(1,700	)		22,669
Mortgage loans held-for- sale, net		-			-		78,335		-			78,335
Inventories, net
Housing completed or under construction		-			280,932		19,782		-			300,714
Land and land under development		-			489,305		16,033		-			505,338
Investment in subsidiaries		126,768			-		-		(126,768	)		-
Other assets, net		45,287			33,074		9,433		(96	)		87,698

Total Assets	$	979,423		$	819,489	$	188,377	$	(128,564	)	$	1,858,725

LIABILITIES
Accounts payable		-			23,409		2,597		-			26,006
Accrued liabilities		67,199			50,271		53,899		(96	)		171,273
Advances and notes payable to parent and subsidiaries		(700,520	)		682,088		20,132		(1,700	)		-
Mortgage repurchase facility		-			-		48,702		-			48,702
Senior notes, net		744,108			-		-		-			744,108

Total Liabilities		110,787			755,768		125,330		(1,796	)		990,089

STOCKHOLDERS' EQUITY		868,636			63,721		63,047		(126,768	)		868,636

Total Liabilities and Stockholders' Equity	$	979,423		$	819,489	$	188,377	$	(128,564	)	$	1,858,725

M.D.C. Holdings, Inc.

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	$	2,657		$	34,553	$	465	$	(2,657	)	$	35,018
Accrued liabilities		131,050			65,622		64,147		-			260,819
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.

Supplemental Condensed Combining Statements of Operations

Year Ended December 31, 2011

(In thousands)


	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Revenue
Home sales revenue	$	-		$	776,015		$	38,782		$	(9,633	)	$	805,164
Land sales and other revenue		-			12,800			26,204			-			39,004
Equity in (loss) income of subsidiaries		(18,966	)		-			-			18,966			-

Total revenue		(18,966	)		788,815			64,986			9,333			844,168

Costs and Expenses
Home cost of sales		-			663,539			32,755			(9,633	)		686,661
Asset impairments		-			14,901			-			-			14,901
Marketing and commission expenses		-			64,947			2,791			-			67,738
General and administrative expenses		57,811			51,547			27,956			-			137,314
Other expenses		(2,025	)		17,862			168			-			16,005

Total operating costs and expenses		55,786			812,796			63,670			(9,633	)		922,619

(Loss) income from operations		(74,752	)		(23,981	)		1,316			18,966			(78,451	)
Other income (expense)		6,643			1			3,130			-			9,774
Extinguishment of senior notes		(38,795	)		-			-			-			(38,795	)

(Loss) income before income taxes		(106,904	)		(23,980	)		4,446			18,966			(107,472	)
Benefit from (provision for) income taxes		8,514			2,027			(1,459	)		-			9,082

Net (loss) income	$	(98,390	)	$	(21,953	)	$	2,987		$	18,966		$	(98,390	)

M.D.C. Holdings, Inc.

Supplemental Condensed Combining Statements of Operations

Year Ended December 31, 2010

(In thousands)


	MDC			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Revenue
Home sales revenue	$	-		$	936,810	$	-		$	(15,788	)	$	921,022
Land sales and other revenue		-			7,133		30,500			-			37,633
Equity in (loss) income of subsidiaries		14,653			-		-			(14,653	)		-

Total revenue		14,653			943,943		30,500			(30,441	)		958,655

Costs and Expenses
Home cost of sales		-			760,383		490			(15,788	)		745,085
Asset impairments		-			21,647		-			-			21,647
Marketing and commission expenses		-			75,577		-			-			75,577
General and administrative expenses		74,626			65,772		26,595			-			166,993
Other expenses		(119	)		8,647		-			-			8,528

Total operating costs and expenses		74,507			932,026		27,085			(15,788	)		1,017,830

(Loss) income from operations		(59,854	)		11,917		3,415			(14,653	)		(59,175	)
Other income (expense)		(14,335	)		179		2,730			-			(11,426	)

(Loss) income before income taxes		(74,189	)		12,096		6,145			(14,653	)		(70,601	)
Benefit from (provision for) income taxes		9,419			992		(4,580	)		-			5,831

Net (loss) income	$	(64,770	)	$	13,088	$	1,565		$	(14,653	)	$	(64,770	)

M.D.C. Holdings, Inc.

Supplemental Condensed Combining Statements of Operations

Year Ended December 31, 2009

(In thousands)


	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Revenue
Home sales revenue	$	-		$	852,045		$	-		$	(14,991	)	$	837,054
Land sales and other revenue		10			32,915			28,324			-			61,249
Equity in (loss) income of subsidiaries		5,995			-			-			(5,995	)		-

Total revenue		6,005			884,960			28,324			(20,986	)		898,303

Costs and Expenses
Home cost of sales		-			701,855			(10	)		(14,991	)		686,854
Asset impairments		1,023			29,963			-			-			30,986
Marketing and commission expenses		-			67,373			-			-			67,373
General and administrative expenses		71,993			66,333			24,159			-			162,485
Other expenses		1,018			30,681			-			-			31,699

Total operating costs and expenses		74,034			896,205			24,149			(14,991	)		979,397

(Loss) income from operations		(68,029	)		(11,245	)		4,175			(5,995	)		(81,094	)
Other income (expense)		(28,242	)		158			1,843			-			(26,241	)

(Loss) income before income taxes		(96,271	)		(11,087	)		6,018			(5,995	)		(107,335	)
Benefit from (provision for) income taxes		120,950			13,639			(2,575	)		-			132,014

Net (loss) income	$	24,679		$	2,552		$	3,443		$	(5,995	)	$	24,679

M.D.C. Holdings, Inc.

Supplemental Condensed Combining Statements of Cash Flows

Year Ended December 31, 2011

(In thousands)


	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Net cash provided by operating activities	$	(39,462	)	$	(26,663	)	$	(33,125	)	$	18,966		$	(80,284	)

Net cash used in investing activities		439,066			(71	)		(34,731	)		-			404,264

Financing activities
Payments from (advances to) subsidiaries		(44,961	)		25,218			38,709			(18,966	)		-
Extinguisment of debt		(537,724	)		-			-			-			(537,724	)
Proceeds from senior notes issuance		-			-			-			-			-
Mortgage repurchase facility, net					-			23,268			-			23,268
Dividend payments		(47,432	)		-			-			-			(47,432	)
Other financing activities		9,044			-			-			-			9,044

Net cash provided by (used in) financing activities		(621,073	)		25,218			61,977			(18,966	)		(552,844	)

Net decrease in cash and cash equivalents		(221,469	)		(1,516	)		(5,879	)		-			(228,864	)
Cash and cash equivalents
Beginning of period		535,035			4,287			32,903			-			572,225

End of period	$	313,566		$	2,771		$	27,024		$	-		$	343,361

M.D.C. Holdings, Inc.

Supplemental Condensed Combining Statements of Cash Flows

Year Ended December 31, 2010

(In thousands)


	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Net cash provided by (used in) operating activities	$	36,971		$	(275,822	)	$	1,123		$	28,647		$	(209,081	)

Net cash used in investing activities		(613,377	)		(1,046	)		(30,043	)		-			(644,466	)

Financing activities
Payments from (advances to) subsidiaries		(293,883	)		277,897			44,633			(28,647	)		-
Proceeds from senior notes issuance		242,288			-			-			-			242,288
Mortgage repurchase facility, net		-			-			(3,681	)		-			(3,681	)
Dividend payments		(47,140	)		-			-			-			(47,140	)
Other financing activities		53			-			-			-			53

Net cash provided by (used in) financing activities		(98,682	)		277,897			40,952			(28,647	)		191,520

Net (decrease) increase in cash and cash equivalents		(675,088	)		1,029			12,032			-			(662,027	)
Cash and cash equivalents
Beginning of period		1,210,123			3,258			20,871			-			1,234,252

End of period	$	535,035		$	4,287		$	32,903		$	-		$	572,225

M.D.C. Holdings, Inc.

Supplemental Condensed Combining Statements of Cash Flows

Year Ended December 31, 2009

(In thousands)


	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Net cash provided by operating activities	$	81,228		$	115,031		$	11,698		$	(5,503	)	$	202,454

Net cash used in investing activities		(224,947	)		(45	)		-			-			(224,992	)

Financing activities
Payments from (advances to) subsidiaries		116,338			(115,264	)		(6,577	)		5,503			-
Mortgage repurchase facility, net		-			-			(5,758	)		-			(5,758	)
Dividend payments		(46,925	)		-			-			-			(46,925	)
Other financing activities		4,745			-			-			-			4,745

Net cash provided by (used in) financing activities		74,158			(115,264	)		(12,335	)		5,503			(47,938	)

Net decrease in cash and cash equivalents		(69,561	)		(278	)		(637	)		-			(70,476	)
Cash and cash equivalents
Beginning of period		1,279,684			3,536			21,508			-			1,304,728

End of period	$	1,210,123		$	3,258		$	20,871		$	-		$	1,234,252