Note 24 - Supplemental Guarantor Information

12 Months Ended

Dec. 31, 2013

Supplemental Guarantor Information [Abstract]

Supplemental Guarantor Information [Text Block]

24.          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.

● Richmond American Homes of Washington, Inc.

The senior note indentures do not provide for a suspension of the guarantees, but do provide that any Guarantor may be released from its guarantee so long as (1) no default or event of default exists or would result from release of such guarantee, (2) the Guarantor being released has consolidated net worth of less than 5% of the Company’s consolidated net worth as of the end of the most recent fiscal quarter, (3) the Guarantors released from their guarantees in any year-end period comprise in the aggregate less than 10% (or 15% if and to the extent necessary to permit the cure of a default) of the Company’s consolidated net worth as of the end of the most recent fiscal quarter, (4) such release would not have a material adverse effect on the homebuilding business of the Company and its subsidiaries and (5) the Guarantor is released from its guarantee(s) under all Specified Indebtedness (other than by reason of payment under its guarantee of Specified Indebtedness). Upon delivery of an officers’ certificate and an opinion of counsel stating that all conditions precedent provided for in the indenture relating to such transactions have been complied with and the release is authorized, the guarantee will be automatically and unconditionally released. “Specified Indebtedness” means indebtedness under the senior notes, the Company’s Indenture dated as of December 3, 2002, the Revolving Credit Facility, and any refinancing, extension, renewal or replacement of any of the foregoing.

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. As a result of our Richmond American Homes of Washington, Inc. subsidiary becoming a guarantor subsidiary in 2013, we have revised the 2011 and 2012 Supplemental Condensed Combining Statements of Operations and Cash Flows and the 2012 Supplemental Condensed Combining Balance Sheet to reflect this subsidiary’s results in the guarantor column.

M.D.C. Holdings, Inc.

Supplemental CondensedCombining Balance Sheet

	December 31, 2013
	MDC		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminating Entries			Consolidated MDC
	Dollars in thousands
ASSETS
Homebuilding:
Cash and cash equivalents	$	145,180	$	3,454	$	-	$	-		$	148,634
Marketable securities		569,021		-		-		-			569,021
Restricted cash		-		2,195		-		-			2,195
Trade Receivables		915		27,951		-		(5,459	)		23,407
Inventories:
Housing completed or under construction		-		636,700		-		-			636,700
Land and land under development		-		774,961		-		-			774,961
Total inventories		-		1,411,661		-		-			1,411,661
Intercompany receivables		1,144,292		2,576		1,899		(1,148,767	)		-
Investment in subsidiaries		335,870		-		-		(335,870	)		-
Deferred tax asset		172,975		-		-		3,287			176,262
Other assets, net		53,933		43,569		-		-			97,502
Total Homebuilding Assets		2,422,186		1,491,406		1,899		(1,486,809	)		2,428,682
Financial Services:
Cash and cash equivalents		-		-		50,704		-			50,704
Marketable securities		-		-		19,046		-			19,046
Intercompany receivables		-		-		11,216		(11,216	)		-
Mortgage loans held-for-sale, net		-		-		92,578		-			92,578
Other assets, net		-		-		7,726		(3,287	)		4,439
Total Financial Services Assets		-		-		181,270		(14,503	)		166,767
Total Assets	$	2,422,186	$	1,491,406	$	183,169	$	(1,501,312	)	$	2,595,449
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	13	$	15,033	$	-	$	-		$	15,046
Accrued liabilities		97,612		56,334		82		(1,207	)		152,821
Intercompany payables		15,692		1,121,581		19,668		(1,156,941	)		-
Senior notes, net		1,095,620		-		-		-			1,095,620
Total Homebuilding Liabilities		1,208,937		1,192,948		19,750		(1,158,148	)		1,263,487
Financial Services:
Accounts payable and other liabilities		-		-		59,891		(4,252	)		55,639
Intercompany payables		-		-		3,042		(3,042	)		-
Mortgage repurchase facility		-		-		63,074		-			63,074
Total Financial Services Liabilities		-		-		126,007		(7,294	)		118,713
Total Liabilities		1,208,937		1,192,948		145,757		(1,165,442	)		1,382,200
Equity:
Total Stockholders' Equity		1,213,249		298,458		37,412		(335,870	)		1,213,249
Total Liabilities and Stockholders' Equity	$	2,422,186	$	1,491,406	$	183,169	$	(1,501,312	)	$	2,595,449

M.D.C. Holdings, Inc.

Supplemental CondensedCombining Balance Sheet

	December 31, 2012
	MDC		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
ASSETS
Homebuilding:
Cash and cash equivalents	$	125,904	$	3,631	$	-	$	-		$	129,535
Marketable securities		519,465		-		-		-			519,465
Restricted cash		-		1,859		-		-			1,859
Trade Receivables		6,563		21,600		-		-			28,163
Inventories:
Housing completed or under construction		-		512,949		-		-			512,949
Land and land under development		-		489,572		-		-			489,572
Total inventories		-		1,002,521		-		-			1,002,521
Intercompany receivables		812,731		2,589		-		(815,320	)		-
Investment in subsidiaries		198,465		-		-		(198,465	)		-
Other assets, net		40,565		37,337		-		-			77,902
Total Homebuilding Assets		1,703,693		1,069,537		-		(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, net		-		-		4,710		(1,700	)		3,010
Total Financial Services Assets		-		-		197,475		(11,479	)		185,996
Total Assets	$	1,703,693	$	1,069,537	$	197,475	$	(1,025,264	)	$	1,945,441
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	-	$	73,055	$	-	$	-		$	73,055
Accrued liabilities		63,886		48,980		5,590		-			118,456
Intercompany payables		14,068		794,179		16,815		(825,062	)		-
Senior notes, net		744,842		-		-		-			744,842
Total Homebuilding Liabilities		822,796		916,214		22,405		(825,062	)		936,353
Financial Services:
Accounts payable and other liabilities		-		-		51,864		-			51,864
Intercompany payables		-		-		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		916,214		152,333		(826,799	)		1,064,544
Equity:
Total Stockholders' Equity		880,897		153,323		45,142		(198,465	)		880,897
Total Liabilities and Stockholders' Equity	$	1,703,693	$	1,069,537	$	197,475	$	(1,025,264	)	$	1,945,441

M.D.C. Holdings, Inc.

Supplemental CondensedCombining Statements of Operations

	Year Ended December 31, 2013
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	-		$	1,630,423		$	-		$	(1,248	)	$	1,629,175
Cost of Sales		-			(1,340,187	)		-			1,248			(1,338,939	)
Inventory impairments		-			(919	)		-			-			(919	)
Gross margin		-			289,317			-			-			289,317
Selling, general, and administrative expenses		(63,506	)		(149,424	)		-			(353	)		(213,283	)
Equity income of subsidiaries		163,157			-			-			(163,157	)		-
Interest income		26,928			10			-			-			26,938
Interest expense		(1,726	)		-			-			-			(1,726	)
Other income (expense), net		1,387			(2,276	)		14			(48	)		(923	)
Homebuilding pretax income (loss)		126,240			137,627			14			(163,558	)		100,323
Financial Services:
Financial services pretax income		-			-			29,101			401			29,502
Income before income taxes		126,240			137,627			29,115			(163,157	)		129,825
(Provision for) benefit for income taxes		188,145			7,507			(11,092	)		-			184,560
Net income	$	314,385		$	145,134		$	18,023		$	(163,157	)	$	314,385
Other comprehensive income related to available for sale securities, net of tax		6,737			-			(119	)		119			6,737
Comprehensive income	$	321,122		$	145,134		$	17,904		$	(163,038	)	$	321,122

M.D.C. Holdings, Inc.

Supplemental CondensedCombining Statements of Operations

	Year Ended December 31, 2012
	MDC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	-		$	1,162,676		$	-		$	(6,534	)	$	1,156,142
Cost of Sales		-			(984,477	)		-			6,534			(977,943	)
Inventory impairments		-			(1,105	)		-			-			(1,105	)
Gross margin		-			177,094			-			-			177,094
Selling, general, and administrative expenses		(52,880	)		(119,135	)		4,720			-			(167,295	)
Equity income of subsidiaries		81,836			-			-			(81,836	)		-
Interest income		23,381			16			1			-			23,398
Interest expense		(778	)		(30	)		-			-			(808	)
Other income (expense), net		528			(306	)		6			-			228
Homebuilding pretax income (loss)		52,087			57,639			4,727			(81,836	)		32,617
Financial Services:
Financial services pretax income		-			-			28,498			-			28,498
Income before income taxes		52,087			57,639			33,225			(81,836	)		61,115
(Provision for) benefit for income taxes		10,612			1,435			(10,463	)		-			1,584
Net income	$	62,699		$	59,074		$	22,762		$	(81,836	)	$	62,699
Other comprehensive income related to available for sale securities, net of tax		12,078			-			100			(100	)		12,078
Comprehensive income	$	74,777		$	59,074		$	22,862		$	(81,936	)	$	74,777

M.D.C. Holdings, Inc.

Supplemental CondensedCombining Statements of Operations

	Year Ended December 31, 2011
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	-		$	826,656		$	-		$	(9,633	)	$	817,023
Cost of Sales		-			(707,576	)		486			9,633			(697,457	)
Inventory impairments		-			(12,965	)		-			-			(12,965	)
Gross margin		-			106,115			486			-			106,601
Selling, general, and administrative expenses		(57,811	)		(123,095	)		1,801			-			(179,105	)
Equity income of subsidiaries		(18,966	)		-			-			18,966			-
Interest income		26,039			29			-			-			26,068
Interest expense		(20,687	)		(155	)		-			-			(20,842	)
Other income (expense), net		(35,479	)		(7,894	)		23			-			(43,350	)
Homebuilding pretax income (loss)		(106,904	)		(25,000	)		2,310			18,966			(110,628	)
Financial Services:
Financial services pretax income		-			-			3,156			-			3,156
Income before income taxes		(106,904	)		(25,000	)		5,466			18,966			(107,472	)
(Provision for) benefit for income taxes		8,514			2,027			(1,459	)		-			9,082
Net income	$	(98,390	)	$	(22,973	)	$	4,007		$	18,966		$	(98,390	)
Other comprehensive income related to available for sale securities, net of tax		(12,124	)		-			(154	)		154			(12,124	)
Comprehensive income	$	(110,514	)	$	(22,973	)	$	3,853		$	19,120		$	(110,514	)

M.D.C. Holdings, Inc.

Supplemental Condensed Combining Statements of Cash Flows

	Year Ended December 31, 2013
	MDC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated MDC
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	11,994		$	(324,812	)	$	43,269		$	-		$	(269,549	)
Net cash used in investing activities		(345,165	)		(1,260	)		13,151			302,872			(30,402	)
Financing activities:
Intercompany advances (repayments)		-			325,895			(23,023	)		(302,872	)		-
Mortgage repurchase facility		-			-			(13,253	)		-			(13,253	)
Proceeds from issuance of senior notes		346,938			-			-			-			346,938
Excess tax benefit from share-based awards		391			-			-			-			391
Proceeds from the exercise of stock options		5,118			-			-			-			5,118
Net cash provided by (used in) financing activities		352,447			325,895			(36,276	)		(302,872	)		339,194
Net increase in cash and cash equivalents		19,276			(177	)		20,144			-			39,243
Cash and cash equivalents:
Beginning of period (1)		125,904			3,631			30,560			-			160,095
End of period	$	145,180		$	3,454		$	50,704		$	-		$	199,338

(1) As a result of our Richmond American Homes of Washington, Inc. subsidiary becoming a guarantor subsidiary in 2013, cash and cash equivalents at the beginning of 2013 in the guarantor and non-guarantor columns will not equal the cash and cash equivalents at December 31, 2012 in the Supplemental Condensed Combining Balance Sheet.

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	$	1,961		$	(96,947	)	$	(13,833	)	$	-		$	(108,819	)
Net cash used in investing activities		(109,332	)		(841	)		2,059			86,333			(21,781	)
Financing activities:
Intercompany advances (repayments)		-			98,567			(12,234	)		(86,333	)		-
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		(80,291	)		98,567			15,391			(86,333	)		(52,666	)
Net increase in cash and cash equivalents		(187,662	)		779			3,617			-			(183,266	)
Cash and cash equivalents:
Beginning of period		313,566			2,852			26,943			-			343,361
End of period	$	125,904		$	3,631		$	30,560		$	-		$	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	$	(20,496	)	$	(37,048	)	$	(22,740	)	$	-		$	(80,284	)
Net cash used in investing activities		375,139			(30,541	)		(4,261	)		63,927			404,264
Financing activities:
Intercompany advances (repayments)		-			66,154			(2,227	)		(63,927	)		-
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		(576,112	)		66,154			21,041			(63,927	)		(552,844	)
Net increase in cash and cash equivalents		(221,469	)		(1,435	)		(5,960	)		-			(228,864	)
Cash and cash equivalents:
Beginning of period		535,035			4,287			32,903			-			572,225
End of period	$	313,566		$	2,852		$	26,943		$	-		$	343,361