22.

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 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.

We added the following subsidiary as a Guarantor subsidiary as of January 3, 2013

•

Richmond American Homes of Washington, 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.

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.

M.D.C. Holdings, Inc.

Supplemental Condensed Combining Balance Sheet


	December 31, 2012
	MDC			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
ASSETS	(Dollars in thousands)
Homebuilding:
Cash and cash equivalents	$	125,904		$	3,308	$	323		$	-		$	129,535
Marketable securities		519,465			-		-						519,465
Restricted cash		-			1,859		-						1,859
Trade and other receivables		6,563			18,846		2,754						28,163
Inventories:
Housing completed or under construction		-			469,495		43,454						512,949
Land and land under development		-			467,915		21,657						489,572
Investment in subsidiaries		198,465			-		-			(198,465	)		-
Other assets, net		40,565			28,524		8,813			-			77,902

Total homebuilding assets		890,962			989,947		77,001			(198,465	)		1,759,445

Financial Services:
Cash and cash equivalents		-			-		30,560			-			30,560
Marketable securities		-			-		32,473			-			32,473
Mortgage loans held-for-sale, net		-			-		119,953			-			119,953
Prepaid expenses and other assets		-			-		4,710			(1,700	)		3,010

Total financial services assets		-			-		187,696			(1,700	)		185,996

Total Assets	$	890,962		$	989,947	$	264,697		$	(200,165	)	$	1,945,441

LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	-		$	67,257	$	5,798			-		$	73,055
Accrued liabilities		63,886			46,761		7,809			-			118,456
Advances and notes payable to parent and subsidiaries		(798,663	)		755,566		52,839			(9,742	)		-
Senior notes, net		744,842			-		-			-			744,842

Total homebuilding liabilities		10,065			869,584		66,446			(9,742	)		936,353

Financial Services:
Accounts payable and other liabilities		-			-		51,864			-			51,864
Advances and notes payable to parent and subsidiaries		-			-		(8,042	)		8,042			-
Mortgage repurchase facility		-			-		76,327			-			76,327

Total financial services liabilities		-			-		120,149			8,042			128,191

Total Liabilities		10,065			869,584		186,595			(1,700	)		1,064,544

Equity:
Total Stockholder’s Equity		880,897			120,363		78,102			(198,465	)		880,897

Total Liabilities and Stockholders’ Equity	$	890,962		$	989,947	$	264,697		$	(200,165	)	$	1,945,441

M.D.C. Holdings, Inc.

Supplemental Condensed Combining Balance Sheet


	December 31, 2011
	MDC			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
ASSETS	(Dollars in thousands)
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

M.D.C. Holdings, Inc.

Supplemental Condensed Combining Statements of Operations


	Year Ended December 31, 2012
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Homebuilding:	(Dollars in thousands)
Revenues	$	-		$	1,087,957		$	74,719		$	(6,534	)	$	1,156,142
Cost of Sales		-			(922,774	)		(61,703	)		6,534			(977,943	)
Inventory impairments		-			(1,105	)		-			-			(1,105	)

Gross margin		-			164,078			13,016			-			177,094

Selling, general, and administrative expenses		(52,880	)		(108,873	)		(5,542	)		-			(167,295	)
Equity income (loss) of subsidiaries		81,836			-			-			(81,836	)		-
Interest income		23,381			16			1			-			23,398
Interest expense		(778	)		(30	)		-			-			(808	)
Other income (expense)		528			15			(315	)		-			228

Homebuilding pretax income (loss)		52,087			55,206			7,160			(81,836	)		32,617

Financial Services:
Financial services pretax income		-			-			28,498			-			28,498

Income (loss) before income taxes		52,087			55,206			35,658			(81,836	)		61,115
(Provision) benefit for income taxes		10,612			1,435			(10,463	)		-			1,584

Net income (loss)	$	62,699		$	56,641		$	25,195		$	(81,836	)	$	62,699

M.D.C. Holdings, Inc.

Supplemental Condensed Combining Statements of Operations


	Year Ended December 31, 2011
	MDC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Homebuilding:	(Dollars in thousands)
Revenues	$	-		$	787,874		$	38,782		$	(9,633	)	$	817,023
Cost of Sales		-			(674,335	)		(32,755	)		9,633			(697,457	)
Inventory impairments		-			(12,965	)		-			-			(12,965	)

Gross margin		-			100,574			6,027			-			106,601

Selling, general, and administrative expenses		(57,811	)		(116,494	)		(4,800	)		-			(179,105	)
Equity income (loss) of subsidiaries		(18,966	)		-			-			18,966			-
Interest income		26,039			29			-			-			26,068
Interest expense		(20,687	)		(155	)		-			-			(20,842	)
Other income (expense)		(35,479	)		(7,934	)		63			-			(43,350	)

Homebuilding pretax income (loss)		(106,904	)		(23,980	)		1,290			18,966			(110,628	)

Financial Services:
Financial services pretax income		-			-			3,156			-			3,156

Income (loss) before income taxes		(106,904	)		(23,980	)		4,446			18,966			(107,472	)
(Provision) benefit for income taxes		8,514			2,027			(1,459	)		-			9,082

Net income (loss)	$	(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
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Homebuilding:	(Dollars in thousands)
Revenues	$	-		$	942,693		$	-		$	(15,788	)	$	926,905
Cost of Sales		-			(765,749	)		(490	)		15,788			(750,451	)
Inventory impairments		-			(21,195	)		-			-			(21,195	)

Gross margin		-			155,749			(490	)		-			155,259

Selling, general, and administrative expenses		(74,626	)		(141,349	)		(3,710	)					(219,685	)
Equity income (loss) of subsidiaries		14,653			-			-			(14,653	)		-
Interest income		23,830			130			-			-			23,960
Interest expense		(38,157	)		-			-			-			(38,157	)
Other income (expense)		111			(2,434	)		50			-			(2,273	)

Homebuilding pretax income (loss)		(74,189	)		12,096			(4,150	)		(14,653	)		(80,896	)

Financial Services:
Financial services pretax income		-			-			10,295			-			10,295

Income (loss) before income taxes		(74,189	)		12,096			6,145			(14,653	)		(70,601	)
(Provision) benefit for income taxes		9,419			992			(4,580	)		-			5,831

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

M.D.C. Holdings, Inc.

Supplemental Condensed Combining Statements of Cash Flows


	Year Ended December 31, 2012
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	83,797		$	(71,674	)	$	(39,106	)	$	(81,836	)	$	(108,819	)

Net cash provided by (used in) investing activities		(22,999	)		(823	)		2,041			-			(21,781	)

Financing activities:
Payments from (advances to) subsidiaries		(168,169	)		73,034			13,299			81,836			-
Mortgage repurchase facility		-			-			27,625			-			27,625
Dividend payments		(96,915	)		-			-			-			(96,915	)
Proceeds from the exercise of stock options		16,624			-			-			-			16,624

Net cash provided by (used in) financing activities		(248,460	)		73,034			40,924			81,836			(52,666	)

Net increase (decrease) in cash and cash equivalents		(187,662	)		537			3,859			-			(183,266	)
Cash and cash equivalents:
Beginning of period		313,566			2,771			27,024			-			343,361

End of period	$	125,904		$	3,308		$	30,883		$	-		$	160,095

M.D.C. Holdings, Inc.

Supplemental Condensed Combining Statements of Cash Flows


	Year Ended December 31, 2011
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	(39,462	)	$	(26,663	)	$	(33,125	)	$	18,966		$	(80,284	)

Net cash provided by (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	)		-
Extinguishment of senior notes		(537,724	)		-			-						(537,724	)
Mortgage repurchase facility		-			-			23,268			-			23,268
Dividend payments		(47,432	)		-			-			-			(47,432	)
Proceeds from the exercise of stock options		9,044			-			-			-			9,044

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

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

Net cash provided by (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 issuance of senior notes		242,288			-			-						242,288
Mortgage repurchase facility		-			-			(3,681	)		-			(3,681	)
Dividend payments		(47,140	)		-			-			-			(47,140	)
Proceeds from the exercise of stock options		53			-			-			-			53

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

Net increase (decrease) 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