18.

Supplemental Guarantor Information

Our 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 us.

•

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 our 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.

We have 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


	September 30, 2012
	MDC			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
ASSETS
Homebuilding:
Cash and cash equivalents	$	231,595		$	3,475	$	203		$	—		$	235,273
Marketable securities		503,805			—		—			—			503,805
Restricted cash		—			2,084		—			—			2,084
Trade and other receivables		8,594			25,986		1,188			—			35,768
Inventories:
Housing completed or under construction		—			469,618		34,398			—			504,016
Land and land under development		—			376,059		17,111			—			393,170
Investment in subsidiaries		172,975			—		—			(172,975	)		—
Other assets, net		42,454			29,956		8,995			—			81,405

Total homebuilding assets		959,423			907,178		61,895			(172,975	)		1,755,521

Financial Services:
Cash and cash equivalents		—			—		28,524			—			28,524
Marketable securities		—			—		32,915			—			32,915
Mortgage loans held-for-sale, net		—			—		86,648			—			86,648
Prepaid expenses and other assets		—			—		6,515			(1,700	)		4,815

Total financial services assets		—			—		154,602			(1,700	)		152,902

Total Assets	$	959,423		$	907,178	$	216,497		$	(174,675	)	$	1,908,423

LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	—		$	46,958	$	2,678			—		$	49,636
Accrued liabilities		56,840			46,277		3,340			—			106,457
Advances and notes payable to parent and subsidiaries		(748,633	)		721,772		33,776			(6,915	)		—
Senior notes, net		744,654			—		—			—			744,654

Total homebuilding liabilities		52,861			815,007		39,794			(6,915	)		900,747

Financial Services:
Accounts payable and other liabilities		—			—		54,226			—			54,226
Advances and notes payable to parent and subsidiaries		—			—		(5,215	)		5,215			—
Mortgage repurchase facility		—			—		46,888			—			46,888

Total financial services liabilities		—			—		95,899			5,215			101,114

Total Liabilities		52,861			815,007		135,693			(1,700	)		1,001,861

Equity:
Total Stockholder’s Equity		906,562			92,171		80,804			(172,975	)		906,562

Total Liabilities and Stockholders’ Equity	$	959,423		$	907,178	$	216,497		$	(174,675	)	$	1,908,423

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 September 30, 2012
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	—		$	303,503		$	18,919		$	(1,760	)	$	320,662
Cost of Sales		—			(257,322	)		(15,507	)		1,760			(271,069	)
Inventory impairments		—			—			—			—			—

Gross margin		—			46,181			3,412			—			49,593

Selling, general, and administrative expenses		(15,461	)		(29,164	)		(163	)		—			(44,788	)
Equity income (loss) of subsidiaries		26,656			—			—			(26,656	)		—
Interest income		5,364			1			—			—			5,365
Interest expense		—			—			—			—			—
Other income (expense)		97			132			(213	)		—			16

Homebuilding pretax income (loss)		16,656			17,150			3,036			(26,656	)		10,186

Financial Services:
Financial services pretax income		—			—			9,298			—			9,298

Income (loss) before income taxes		16,656			17,150			12,334			(26,656	)		19,484
(Provision) benefit for income taxes		3,470			586			(3,414	)		—			642

Net income (loss)	$	20,126		$	17,736		$	8,920		$	(26,656	)	$	20,126


	Three Months Ended September 30, 2011
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	—		$	193,857		$	13,155		$	(1,396	)	$	205,616
Cost of Sales		—			(161,751	)		(10,812	)		1,396			(171,167	)
Inventory impairments		—			(4,049	)		—			—			(4,049	)

Gross margin		—			28,057			2,343			—			30,400

Selling, general, and administrative expenses		(15,106	)		(28,704	)		(2,550	)		—			(46,360	)
Equity income (loss) of subsidiaries		(4,022	)		—			—			4,022			—
Interest income		5,958			6			—			—			5,964
Interest expense		(3,641	)		—			—			—			(3,641	)
Other income (expense)		(17,318	)		(2,742	)		(42	)		—			(20,102	)

Homebuilding pretax income (loss)		(34,129	)		(3,383	)		(249	)		4,022			(33,739	)

Financial Services:
Financial services pretax income (loss)		—			—			(450	)		—			(450	)

Income (loss) before income taxes		(34,129	)		(3,383	)		(699	)		4,022			(34,189	)
(Provision) benefit for income taxes		2,419			(1	)		61			—			2,479

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

Supplemental Condensed Combining Statements of Operations


	Nine Months Ended September 30, 2012
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	—		$	720,358		$	49,632		$	(4,713	)	$	765,277
Cost of Sales		—			(616,077	)		(41,787	)		4,713			(653,151	)
Inventory impairments		—			—			—			—			—

Gross margin		—			104,281			7,845			—			112,126

Selling, general, and administrative expenses		(38,030	)		(77,535	)		(2,570	)		—			(118,135	)
Equity income (loss) of subsidiaries		46,776			—			—			(46,776	)		—
Interest income		16,642			9			—			—			16,651
Interest expense		(778	)		(30	)		—			—			(808	)
Other income (expense)		535			208			(151	)		—			592

Homebuilding pretax income (loss)		25,145			26,933			5,124			(46,776	)		10,426

Financial Services:
Financial services pretax income (loss)		—			—			20,838			—			20,838

Income (loss) before income taxes		25,145			26,933			25,962			(46,776	)		31,264
(Provision) benefit for income taxes		7,884			1,519			(7,638	)		—			1,765

Net income (loss)	$	33,029		$	28,452		$	18,324		$	(46,776	)	$	33,029


	Nine Months Ended September 30, 2011
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	—		$	556,078		$	26,938		$	(5,085	)	$	577,931
Cost of Sales		—			(475,005	)		(23,083	)		5,085			(493,003	)
Inventory impairments		—			(12,682	)		—			—			(12,682	)

Gross margin		—			68,391			3,855			—			72,246

Selling, general, and administrative expenses		(48,170	)		(90,527	)		(4,474	)		—			(143,171	)
Equity income (loss) of subsidiaries		(23,295	)		—			—			23,295			—
Interest income		19,413			24			—			—			19,437
Interest expense		(19,642	)		—			—			—			(19,642	)
Other income (expense)		(15,255	)		(5,755	)		25			—			(20,985	)

Homebuilding pretax income (loss)		(86,949	)		(27,867	)		(594	)		23,295			(92,115	)

Financial Services:
Financial services pretax income		—			—			4,419			—			4,419

Income (loss) before income taxes		(86,949	)		(27,867	)		3,825			23,295			(87,696	)
(Provision) benefit for income taxes		7,380			2,583			(1,836	)		—			8,127

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

Supplemental Condensed Combining Statements of Cash Flows


	Nine Months Ended September 30, 2012
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	39,291		$	(37,887	)	$	(5,083	)	$	(46,776	)	$	(50,455	)

Net cash provided by (used in) investing activities		(8,106	)		(719	)		1,756			—			(7,069	)

Financing activities:
Payments from (advances to) subsidiaries		(92,930	)		39,310			6,844			46,776			—
Mortgage repurchase facility		—			—			(1,814	)		—			(1,814	)
Dividend payments		(36,046	)		—			—			—			(36,046	)
Proceeds from the exercise of stock options		15,820			—			—			—			15,820

Net cash provided by (used in) financing activities		(113,156	)		39,310			5,030			46,776			(22,040	)

Net increase (decrease) in cash and cash equivalents		(81,971	)		704			1,703			—			(79,564	)
Cash and cash equivalents:
Beginning of period		313,566			2,771			27,024			—			343,361

End of period	$	231,595		$	3,475		$	28,727		$	—		$	263,797


	Nine Months Ended September 30, 2011
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
Net cash provided by (used in) 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:
Extinguishment of senior notes		(254,903	)		—			—			—			(254,903	)
Payments from (advances to) subsidiaries		(86,833	)		75,707			34,427			(23,301	)		—
Mortgage repurchase facility		—			—			(14,726	)		—			(14,726	)
Dividend payments		(35,560	)		—			—			—			(35,560	)
Proceeds from the exercise of stock options		46			—			—			—			46

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

Net increase (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