Supplemental Guarantor Information (Tables)

3 Months Ended

Mar. 31, 2013

Components of Supplemental Condensed Combining Statements of Cash Flows

Following is a reconciliation of the amounts previously reported to the reclassified amounts as stated in the following components of the Supplemental Condensed Combining Statements of Cash Flows for the three months ended March 31, 2012.


MDC Column for Three Months Ended March 31, 2012	As Previously Reported			Reclassify the non-cash equity income (loss) of subsidiaries			As Reclassified
	(Dollars in thousands)
Net Cash provided by (used in) operating activities	$	(6,281	)	$	(7,705	)	$	(13,986	)
Payments from (advances to) subsidiaries	$	(32,908	)	$	7,705		$	(25,203	)
Net cash provided by (used in) financing activities	$	(44,902	)	$	7,705		$	(37,197	)
Net increase (decrease) in cash and cash equivalents	$	(53,568	)	$	-		$	(53,568	)

Supplemental Condensed Combining Balance Sheets

Supplemental Condensed Combining Balance Sheets


	March 31, 2013
					Non-
			Guarantor		Guarantor		Eliminating			Consolidated
	MDC		Subsidiaries		Subsidiaries		Entries			MDC
ASSETS	(Dollars in thousands)
Homebuilding:
Cash and cash equivalents	$	178,928	$	4,308	$	-	$	-		$	183,236
Marketable securities		626,707		-		-		-			626,707
Restricted cash		-		2,526		-		-			2,526
Trade and other receivables		9,015		25,057		-		(2,187	)		31,885
Inventories:
Housing completed or under construction		-		521,661		-		-			521,661
Land and land under development		-		534,438		-		-			534,438
Intercompany receivables		908,332		2,555		-		(910,887	)		-
Investment in subsidiaries		212,938		-		-		(212,938	)		-
Other assets		42,349		39,524		-		3,457			85,330

Total homebuilding assets		1,978,269		4,308		-		-			1,985,783

Financial Services:
Cash and cash equivalents		-		-		32,444		-			32,444
Marketable securities		-		-		33,292		-			33,292
Trade receivables		-		-		1,399		-			1,399
Intercompany receivables		-		-		4,203		(4,203	)		-
Mortgage loans held-for-sale, net		-		-		86,429		-			86,429
Other assets		-		-		6,444		(3,457	)		2,987

Total financial services assets		-		-		164,211		(7,660	)		156,551

Total Assets		1,978,269		1,130,069		164,211		(1,130,215	)		2,142,334

LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	-	$	21,712	$	-	$	-		$	21,712
Accrued liabilities		62,036		50,641		8		2,454			115,139
Advances and notes payable to parent and subsidiaries		6,758		879,343		45		(886,146	)		-
Senior notes, net		995,032		-		-		-			995,032

Total homebuilding liabilities		1,063,826		951,696		53		(883,692	)		1,131,883

Financial Services:
Accounts payable and other liabilities		-		-		59,181		(4,641	)		54,540
Advances and notes payable to parent and subsidiaries		-		-		28,944		(28,944	)		-
Mortgage repurchase facility		-		-		41,468		-			41,468

Total financial services liabilities		-		-		129,593		(33,585	)		96,008

Total Liabilities		1,063,826		951,696		129,646		(917,277	)		1,227,891

Equity:
Total Stockholder’s Equity		914,443		178,373		34,565		(212,938	)		914,443

Total Liabilities and Stockholders’ Equity	$	1,978,269	$	1,130,069	$	164,211	$	(1,130,215	)	$	2,142,334

Supplemental Condensed Combining Balance Sheets


	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
Intercompany receivables		812,731		2,589		-		(815,320	)		-
Investment in subsidiaries		198,465		-		-		(198,465	)		-
Other assets		40,565		28,524		8,813		-			77,902

Total homebuilding assets		1,703,693		992,536		77,001		(1,013,785	)		1,759,445

Financial Services:
Cash and cash equivalents		-		-		30,560		-			30,560
Marketable securities		-		-		32,473		-			32,473
Intercompany receivables		-		-		9,779		(9,779	)		-
Mortgage loans held-for-sale, net		-		-		119,953		-			119,953
Other assets		-		-		4,710		(1,700	)		3,010

Total financial services assets		-		-		197,475		(11,479	)		185,996

Total Assets	$	1,703,693	$	992,536	$	274,476	$	(1,025,264	)	$	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		14,068		758,155		52,839		(825,062	)		-
Senior notes, net		744,842		-		-		-			744,842

Total homebuilding liabilities		822,796		872,173		66,446		(825,062	)		936,353

Financial Services:
Accounts payable and other liabilities		-		-		51,864		-			51,864
Advances and notes payable to parent and subsidiaries		-		-		1,737		(1,737	)		-
Mortgage repurchase facility		-		-		76,327		-			76,327

Total financial services liabilities		-		-		129,928		(1,737	)		128,191

Total Liabilities		822,796		872,173		196,374		(826,799	)		1,064,544

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

Total Liabilities and Stockholders’ Equity	$	1,703,693	$	992,536	$	274,476	$	(1,025,264	)	$	1,945,441

Supplemental Condensed Combining Statements of Operations and Comprehensive Income

Supplemental Condensed Combining Statements of Operations and Comprehensive Income


	Three Months Ended March 31, 2013
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Homebuilding:	(Dollars in thousands)
Revenues	$	-		$	332,996		$	-		$	(1,248	)	$	331,748
Cost of Sales		-			(275,324	)		-			1,248			(274,076	)
Inventory impairments		-			-			-			-			-

Gross margin		-			57,672			-			-			57,672

Selling, general, and administrative expenses		(15,579	)		(32,546	)		-			(76	)		(48,201	)
Equity income of subsidiaries		29,829			-			-			(29,829	)		-
Interest income		(817	)		-			-			-			(817	)
Interest expense		6,179			3			-			-			6,182
Other income (expense), net		11			-			-			-			11

Homebuilding pretax income		19,623			25,129			-			(29,905	)		14,847

Financial Services:
Financial services pretax income		-			-			7,663			76			7,739

Income before income taxes		19,623			25,129			7,663			(29,829	)		22,586
(Provision) benefit for income taxes		2,893			(78	)		(2,885	)		-			(70	)

Net income	$	22,516		$	25,051		$	4,778		$	(29,829	)	$	22,516

Other comprehensive income (loss)
Unrealized gain (loss) related to available for sale securities		2,631			-			(96	)		-			2,535

Comprehensive income	$	25,147		$	25,051		$	4,682		$	(29,829	)	$	25,051


	Three Months Ended March 31, 2012
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
Homebuilding:	(Dollars in thousands)
Revenues	$	-		$	175,532		$	12,006		$	(1,270	)	$	186,268
Cost of Sales		-			(151,074	)		(10,340	)		1,270			(160,144	)
Inventory impairments		-			-			-			-			-

Gross margin		-			24,458			1,666			-			26,124

Selling, general, and administrative expenses		(12,308	)		(21,993	)		177			-			(34,124	)
Equity income of subsidiaries		7,705			-			-			(7,705	)		-
Interest income		(778	)		(30	)		-			-			(808	)
Interest expense		5,910			3			-			-			5,913
Other income (expense), net		18			117			23			-			158

Homebuilding pretax income (loss)		547			2,555			1,866			(7,705	)		(2,737	)

Financial Services:
Financial services pretax income		-			-			4,862			-			4,862

Income before income taxes		547			2,555			6,728			(7,705	)		2,125
(Provision) benefit for income taxes		1,718			168			(1,746	)		-			140

Net income	$	2,265		$	2,723		$	4,982		$	(7,705	)	$	2,265

Other comprehensive income
Unrealized gain related to available for sale securities		6,439			-			109			-			6,548

Comprehensive income	$	8,704		$	2,723		$	5,091		$	(7,705	)	$	8,813

Supplemental Condensed Combining Statements of Cash Flows

Supplemental Condensed Combining Statements of Cash Flows


	Three Months Ended March 31, 2013
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries		Consolidated MDC
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	(7,369	)	$	(151,915	)	$	103,866		$	-	$	(55,418	)

Net cash used in investing activities		(105,589	)		(571	)		(909	)		-		(107,069	)

Financing activities:
Payments from (advances to) subsidiaries		(86,949	)		153,486			(66,537	)		-		-
Mortgage repurchase facility		-			-			(34,859	)		-		(34,859	)
Proceeds from issuance of senior notes		247,813			-			-			-		247,813
Proceeds from the exercise of stock options		5,118			-			-			-		5,118

Net cash provided by (used in) financing activities		165,982			153,486			(101,396	)		-		218,072

Net increase in cash and cash equivalents		53,024			1,000			1,561			-		55,585
Cash and cash equivalents:
Beginning of period		125,904			3,308			30,883			-		160,095

End of period	$	178,928		$	4,308		$	32,444		$	-	$	215,680


	Three Months Ended March 31, 2012
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries		Consolidated MDC
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	(13,986	)	$	(25,595	)	$	20,768		$	-	$	(18,813	)

Net cash used in investing activities		(2,385	)		(147	)		(1,421	)		-		(3,953	)

Financing activities:
Payments from (advances to) subsidiaries		(25,203	)		26,234			(1,031	)		-		-
Mortgage repurchase facility		-			-			(22,862	)		-		(22,862	)
Dividend payments		(11,994	)		-			-			-		(11,994	)

Net cash provided by (used in) financing activities		(37,197	)		26,234			(23,893	)		-		(34,856	)

Net increase (decrease) in cash and cash equivalents		(53,568	)		492			(4,546	)		-		(57,622	)
Cash and cash equivalents:
Beginning of period		313,566			2,771			27,024			-		343,361

End of period	$	259,998		$	3,263		$	22,478		$	-	$	285,739