Supplemental Guarantor Information (Tables)

12 Months Ended

Dec. 31, 2012

Supplemental Condensed Combining Balance Sheets

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

Supplemental Condensed Combining Statements of Operations

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	)

Supplemental Condensed Combining Statements of Cash Flows

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