18.

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 by 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 and Non-Guarantor Subsidiaries is presented below.

Supplemental Condensed Combining Balance Sheets


	June 30, 2012
	MDC			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
				(Dollars in thousands)
ASSETS
Homebuilding:
Cash and cash equivalents	$	294,862		$	3,322	$	90		$	—		$	298,274
Marketable securities		454,775			—		—			—			454,775
Restricted cash		—			2,260		—			—			2,260
Trade and other receivables		6,713			31,934		1,694			—			40,341
Inventories:
Housing completed or under construction		—			410,656		26,631			—			437,287
Land and land under development		—			398,860		15,606			—			414,466
Investment in subsidiaries		146,691			—		—			(146,691	)		—
Other assets, net		41,204			29,070		8,469			—			78,743

Total homebuilding assets		944,245			876,102		52,490			(146,691	)		1,726,146
Financial Services:
Cash and cash equivalents		—			—		27,850			—			27,850
Marketable securities		—			—		32,256			—			32,256
Mortgage loans held-for-sale, net		—			—		65,687			—			65,687
Prepaid expenses and other assets		—			—		5,675			(1,700	)		3,975

Total financial services assets		—			—		131,468			(1,700	)		129,768

Total Assets	$	944,245		$	876,102	$	183,958		$	(148,391	)	$	1,855,914

LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	(4	)	$	42,382	$	451		$	—		$	42,829
Accrued liabilities		58,214			49,114		4,402			—			111,730
Advances and notes payable to parent and subsidiaries		(729,695	)		710,170		28,480			(8,955	)		—
Senior notes, net		744,470			—		—			—			744,470

Total homebuilding liabilities		72,985			801,666		33,333			(8,955	)		899,029
Financial Services:
Accounts payable and other liabilities		—			—		52,965			—			52,965
Advances and notes payable to parent and subsidiaries		—			—		(7,255	)		7,255			—
Mortgage repurchase facility		—			—		32,660			—			32,660

Total financial services liabilities		—			—		78,370			7,255			85,625

Total Liabilities		72,985			801,666		111,703			(1,700	)		984,654

Equity:
Total Stockholder’s Equity		871,260			74,436		72,255			(146,691	)		871,260

Total Liabilities and Stockholders’ Equity	$	944,245		$	876,102	$	183,958		$	(148,391	)	$	1,855,914

Supplemental Condensed Combining Balance Sheets


	December 31, 2011
	MDC			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
				(dollars in thousands)
ASSETS
Homebuilding:
Cash and cash equivalents	$	313,566		$	2,771	$	81		$	—		$	316,418
Marketable securities		485,434			—		—			—			485,434
Restricted cash		—			667		—			—			667
Trade and other receivables		8,368			12,740		485			—			21,593
Inventories:
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		8,435			(96	)		86,700

Total homebuilding assets		979,423			819,489		44,816			(126,864	)		1,716,864
Financial Services:
Cash and cash equivalents		—			—		26,943			—			26,943
Marketable securities		—			—		34,509			—			34,509
Mortgage loans held-for-sale, net		—			—		78,335			—			78,335
Prepaid expenses and other assets		—			—		3,774			(1,700	)		2,074

Total financial services assets		—			—		143,561			(1,700	)		141,861

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

LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	—		$	23,409	$	2,236		$	—		$	25,645
Accrued liabilities		67,199			50,271		1,814			(96	)		119,188
Advances and notes payable to parent and subsidiaries		(700,520	)		682,088		21,998			(3,566	)		—
Senior notes, net		744,108			—		—			—			744,108

Total homebuilding liabilities		110,787			755,768		26,048			(3,662	)		888,941
Financial Services:
Accounts payable and other liabilities		—			—		52,446			—			52,446
Advances and notes payable to parent and subsidiaries		—			—		(1,866	)		1,866			—
Mortgage repurchase facility		—			—		48,702			—			48,702

Total financial services liabilities		—			—		99,282			1,866			101,148

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

Equity:
Total Stockholder’s 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

Supplemental Condensed Combining Statements of Operations


	Three Months Ended June 30, 2012
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	—		$	241,323		$	18,707		$	(1,683	)	$	258,347
Cost of Sales		—			(207,681	)		(15,940	)		1,683			(221,938	)
Inventory impairments		—			—			—			—			—

Gross margin		—			33,642			2,767			—			36,409

Selling, general, and administrative expenses		(10,261	)		(26,378	)		(2,584	)		—			(39,223	)
Equity income (loss) of subsidiaries		12,415			—			—			(12,415	)		—
Interest income		5,368			5			—			—			5,373
Interest expense		—			—			—			—			—
Other income (expense)		420			(41	)		39			—			418

Homebuilding pretax income (loss)		7,942			7,228			222			(12,415	)		2,977

Financial Services:
Financial services pretax income (loss)		—			—			6,678			—			6,678

Income (loss) before income taxes		7,942			7,228			6,900			(12,415	)		9,655
(Provision) benefit for income taxes		2,696			765			(2,478	)		—			983

Net income (loss)	$	10,638		$	7,993		$	4,422		$	(12,415	)	$	10,638


	Three Months Ended June 30, 2011
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
				(Dollars in thousands)
Homebuilding:
Revenues	$	—		$	196,119		$	13,783		$	(1,174	)	$	208,728
Cost of Sales		—			(169,741	)		(12,271	)		1,174			(180,838	)
Inventory impairments		—			(8,633	)		—			—			(8,633	)

Gross margin		—			17,745			1,512			—			19,257

Selling, general, and administrative expenses		(15,982	)		(31,252	)		(1,924	)		—			(49,158	)
Equity income (loss) of subsidiaries		(13,221	)		—			—			13,221			—
Interest income		6,979			7			—			—			6,986
Interest expense		(7,334	)		—			—			—			(7,334	)
Other income (expense)		(251	)		(2,453	)		61			—			(2,643	)

Homebuilding pretax income (loss)		(29,809	)		(15,953	)		(351	)		13,221			(32,892	)

Financial Services:
Financial services pretax income (loss)		—			—			3,089			—			3,089

Income (loss) before income taxes		(29,809	)		(15,953	)		2,738			13,221			(29,803	)
(Provision) benefit for income taxes		1,829			1,208			(1,214	)		—			1,823

Net income (loss)	$	(27,980	)	$	(14,745	)	$	1,524		$	13,221		$	(27,980	)

Supplemental Condensed Combining Statements of Operations


	Six Months Ended June 30, 2012
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
				(Dollars in thousands)
Homebuilding:
Revenues	$	—		$	416,855		$	30,713		$	(2,953	)	$	444,615
Cost of Sales		—			(358,755	)		(26,280	)		2,953			(382,082	)
Inventory impairments		—			—			—			—			—

Gross margin		—			58,100			4,433			—			62,533

Selling, general, and administrative expenses		(22,569	)		(48,371	)		(2,407	)		—			(73,347	)
Equity income (loss) of subsidiaries		20,120			—			—			(20,120	)		—
Interest income		11,278			8			—			—			11,286
Interest expense		(778	)		(30	)		—			—			(808	)
Other income (expense)		438			76			62			—			576

Homebuilding pretax income (loss)		8,489			9,783			2,088			(20,120	)		240

Financial Services:
Financial services pretax income (loss)		—			—			11,540			—			11,540

Income (loss) before income taxes		8,489			9,783			13,628			(20,120	)		11,780
(Provision) benefit for income taxes		4,414			933			(4,224	)		—			1,123

Net income (loss)	$	12,903		$	10,716		$	9,404		$	(20,120	)	$	12,903


	Six Months Ended June 30, 2011
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
				(Dollars in thousands)
Homebuilding:
Revenues	$	—		$	362,220		$	13,783		$	(3,688	)	$	372,315
Cost of Sales		—			(313,253	)		(12,271	)		3,688			(321,836	)
Asset impairments		—			(8,633	)		—			—			(8,633	)

Gross margin		—			40,334			1,512			—			41,846

Selling, general, and administrative expenses		(33,064	)		(61,823	)		(1,924	)		—			(96,811	)
Equity income (loss) of subsidiaries		(19,273	)		—			—			19,273			—
Interest income		13,455			19			—			—			13,474
Interest expense		(16,001	)		—			—			—			(16,001	)
Other income (expense)		2,063			(3,014	)		67			—			(884	)

Homebuilding pretax income (loss)		(52,820	)		(24,484	)		(345	)		19,273			(58,376	)

Financial Services:
Financial services pretax income (loss)		—			—			4,869			—			4,869

Income (loss) before income taxes		(52,820	)		(24,484	)		4,524			19,273			(53,507	)
(Provision) benefit for income taxes		4,961			2,584			(1,897	)		—			5,648

Net income (loss)	$	(47,859	)	$	(21,900	)	$	2,627		$	19,273		$	(47,859	)

Supplemental Condensed Combining Statements of Cash Flows


	Six Months Ended June 30, 2012
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
				(Dollars in thousands)
Net cash provided by (used in) operating activities	$	16,882		$	(26,747	)	$	14,395		$	(20,120	)	$	(15,590	)

Net cash used in investing activities		36,475			(494	)		2,264			—			38,245

Financing activities:
Payments from (advances to) subsidiaries		(48,211	)		27,792			299			20,120			—
Mortgage repurchase facility		—			—			(16,042	)		—			(16,042	)
Dividend payments		(23,990	)		—			—			—			(23,990	)
Proceeds from the exercise of stock options		140			—			—			—			140

Net cash provided by (used in) financing activities		(72,061	)		27,792			(15,743	)		20,120			(39,892	)

Net increase (decrease) in cash and cash equivalents		(18,704	)		551			916			—			(17,237	)
Cash and cash equivalents:
Beginning of period		313,566			2,771			27,024			—			343,361

End of period	$	294,862		$	3,322		$	27,940		$	—		$	326,124


	Six Months Ended June 30, 2011
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
				(Dollars in thousands)
Net cash provided by (used in) operating activities	$	(25,813	)	$	(83,489	)	$	20,772		$	19,273		$	(69,257	)

Net cash used in investing activities		321,930			(11	)		(28,960	)		—			292,959

Financing activities:
Payments from (advances to) subsidiaries		(89,496	)		82,235			26,534			(19,273	)		—
Mortgage repurchase facility		—			—			(16,446	)		—			(16,446	)
Dividend payments		(23,692	)		—			—			—			(23,692	)
Proceeds from the exercise of stock options		46			—			—			—			46

Net cash provided by (used in) 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