Supplemental Guarantor Information (Tables)

9 Months Ended

Sep. 30, 2012

Supplemental Condensed Combining Balance Sheets

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

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

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