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Note 22 - Supplemental Guarantor Information
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Supplemental Guarantor Information [Text Block]
2
2
.   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.
 
M.D.C. Holding
s, Inc.
Supplemental
Condensed
Combining Balance Sheet
 
   
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Non-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantor
 
 
Guarantor
 
 
Eliminating
 
 
Consolidated
 
 
 
MDC
 
 
Subsidiaries
 
 
Subsidiaries
 
 
Entries
 
 
MDC
 
 
 
Dollars in thousands
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
255,679
 
 
$ 
3,408
 
 
$ 
-
 
 
$ 
-
 
 
$
259,087
 
Marketable securities
 
 
59,770
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
59,770
 
Restricted cash
 
 
-
 
 
 
3,778
 
 
 
-
 
 
 
-
 
 
 
3,778
 
Trade and other receivables
 
 
5,380
 
 
 
39,247
 
 
 
-
 
 
 
(2,135
)
 
 
42,492
 
Inventories:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Housing completed or under construction
 
 
-
 
 
 
874,199
 
 
 
-
 
 
 
-
 
 
 
874,199
 
Land and land under development
 
 
-
 
 
 
884,615
 
 
 
-
 
 
 
-
 
 
 
884,615
 
Total inventories
 
 
-
 
 
 
1,758,814
 
 
 
-
 
 
 
-
 
 
 
1,758,814
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany receivables
 
 
1,475,291
 
 
 
2,803
 
 
 
5,289
 
 
 
(1,483,383
)
 
 
-
 
Investment in subsidiaries
 
 
295,214
 
 
 
-
 
 
 
-
 
 
 
(295,214
)
 
 
-
 
Property and equipment, net
 
 
25,495
 
 
 
2,546
 
 
 
-
 
 
 
-
 
 
 
28,041
 
Deferred tax assets, net
 
 
74,119
 
 
 
-
 
 
 
-
 
 
 
769
 
 
 
74,888
 
Metropolitan district bond securities (related party)
 
 
30,162
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
30,162
 
Other assets
 
 
5,267
 
 
 
55,196
 
 
 
-
 
 
 
-
 
 
 
60,463
 
Total Homebuilding Assets
 
 
2,226,377
 
 
 
1,865,792
 
 
 
5,289
 
 
 
(1,779,963
)
 
 
2,317,495
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Services:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
-
 
 
 
-
 
 
 
23,822
 
 
 
-
 
 
 
23,822
 
Marketable securities
 
 
-
 
 
 
-
 
 
 
36,436
 
 
 
-
 
 
 
36,436
 
Intercompany receivables
 
 
-
 
 
 
-
 
 
 
40,042
 
 
 
(40,042
)
 
 
-
 
Mortgage loans held-for-sale, net
 
 
-
 
 
 
-
 
 
 
138,774
 
 
 
-
 
 
 
138,774
 
Other assets
 
 
-
 
 
 
-
 
 
 
12,831
 
 
 
(769
)
 
 
12,062
 
Total Financial Services Assets
 
 
-
 
 
 
-
 
 
 
251,905
 
 
 
(40,811
)
 
 
211,094
 
Total Assets
 
$
2,226,377
 
 
$
1,865,792
 
 
$
257,194
 
 
$
(1,820,774
)
 
$
2,528,589
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
-
 
 
$
42,088
 
 
$
-
 
 
$
-
 
 
$
42,088
 
Accrued liabilities
 
 
1,527
 
 
 
136,615
 
 
 
143
 
 
 
6,281
 
 
 
144,566
 
Advances and notes payable to parent and subsidiaries
 
 
48,134
 
 
 
1,445,276
 
 
 
26,266
 
 
 
(1,519,676
)
 
 
-
 
Revolving credit facility
 
 
15,000
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
15,000
 
Senior notes, net
 
 
841,646
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
841,646
 
Total Homebuilding Liabilities
 
 
906,307
 
 
 
1,623,979
 
 
 
26,409
 
 
 
(1,513,395
)
 
 
1,043,300
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Services:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
 
-
 
 
 
-
 
 
 
59,150
 
 
 
(8,416
)
 
 
50,734
 
Advances and notes payable to parent and subsidiaries
 
 
-
 
 
 
-
 
 
 
3,749
 
 
 
(3,749
)
 
 
-
 
Mortgage repurchase facility
 
 
-
 
 
 
-
 
 
 
114,485
 
 
 
-
 
 
 
114,485
 
Total Financial Services Liabilities
 
 
-
 
 
 
-
 
 
 
177,384
 
 
 
(12,165
)
 
 
165,219
 
Total Liabilities
 
 
906,307
 
 
 
1,623,979
 
 
 
203,793
 
 
 
(1,525,560
)
 
 
1,208,519
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Stockholders' Equity
 
 
1,320,070
 
 
 
241,813
 
 
 
53,401
 
 
 
(295,214
)
 
 
1,320,070
 
Total Liabilities and Stockholders' Equity
 
$
2,226,377
 
 
$
1,865,792
 
 
$
257,194
 
 
$
(1,820,774
)
 
$
2,528,589
 
 
 
M.D.C. Holdings, Inc.
Supplemental
Condensed
Combining Balance Sheet
 
   
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Non-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantor
 
 
Guarantor
 
 
Eliminating
 
 
Consolidated
 
 
 
MDC
 
 
Subsidiaries
 
 
Subsidiaries
 
 
Entries
 
 
MDC
 
 
 
(Dollars in thousands)
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
141,245
 
 
$
3,097
 
 
$
-
 
 
$
-
 
 
$
144,342
 
Marketable securities
 
 
92,387
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
92,387
 
Restricted cash
 
 
-
 
 
 
3,750
 
 
 
-
 
 
 
-
 
 
 
3,750
 
Trade and other receivables
 
 
5,304
 
 
 
20,297
 
 
 
-
 
 
 
(2,287
)
 
 
23,314
 
Inventories:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Housing completed or under construction
 
 
-
 
 
 
747,036
 
 
 
-
 
 
 
-
 
 
 
747,036
 
Land and land under development
 
 
-
 
 
 
1,016,926
 
 
 
-
 
 
 
-
 
 
 
1,016,926
 
Total inventories
 
 
-
 
 
 
1,763,962
 
 
 
-
 
 
 
-
 
 
 
1,763,962
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany receivables
 
 
1,509,551
 
 
 
2,850
 
 
 
5,291
 
 
 
(1,517,692
)
 
 
-
 
Investment in subsidiaries
 
 
267,191
 
 
 
-
 
 
 
-
 
 
 
(267,191
)
 
 
-
 
Property and equipment, net
 
 
26,073
 
 
 
2,153
 
 
 
-
 
 
 
-
 
 
 
28,226
 
Deferred tax assets, net
 
 
97,083
 
 
 
-
 
 
 
-
 
 
 
2,024
 
 
 
99,107
 
Metropolitan district bond securities (related party)
 
 
25,911
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
25,911
 
Other assets, net
 
 
5,973
 
 
 
59,421
 
 
 
-
 
 
 
-
 
 
 
65,394
 
Total Homebuilding Assets
 
 
2,170,718
 
 
 
1,855,530
 
 
 
5,291
 
 
 
(1,785,146
)
 
 
2,246,393
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Services:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
-
 
 
 
-
 
 
 
36,646
 
 
 
-
 
 
 
36,646
 
Marketable securities
 
 
-
 
 
 
-
 
 
 
11,307
 
 
 
-
 
 
 
11,307
 
Intercompany receivables
 
 
-
 
 
 
-
 
 
 
39,234
 
 
 
(39,234
)
 
 
-
 
Mortgage loans held-for-sale, net
 
 
-
 
 
 
-
 
 
 
115,670
 
 
 
-
 
 
 
115,670
 
Other assets, net
 
 
-
 
 
 
-
 
 
 
7,907
 
 
 
(2,024
)
 
 
5,883
 
Total Financial Services Assets
 
 
-
 
 
 
-
 
 
 
210,764
 
 
 
(41,258
)
 
 
169,506
 
Total Assets
 
$
2,170,718
 
 
$
1,855,530
 
 
$
216,055
 
 
$
(1,826,404
)
 
$
2,415,899
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
-
 
 
$
40,472
 
 
$
-
 
 
$
-
 
 
$
40,472
 
Accrued liabilities
 
 
11,527
 
 
 
108,445
 
 
 
(33
)
 
 
2,947
 
 
 
122,886
 
Advances and notes payable to parent and subsidiaries
 
 
47,375
 
 
 
1,480,589
 
 
 
25,536
 
 
 
(1,553,500
)
 
 
-
 
Revolving credit facility
 
 
15,000
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
15,000
 
Senior notes, net
 
 
840,524
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
840,524
 
Total Homebuilding Liabilities
 
 
914,426
 
 
 
1,629,506
 
 
 
25,503
 
 
 
(1,550,553
)
 
 
1,018,882
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Services:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
 
-
 
 
 
-
 
 
 
57,348
 
 
 
(5,234
)
 
 
52,114
 
Advances and notes payable to parent and subsidiaries
 
 
-
 
 
 
-
 
 
 
3,426
 
 
 
(3,426
)
 
 
-
 
Mortgage repurchase facility
 
 
-
 
 
 
-
 
 
 
88,611
 
 
 
-
 
 
 
88,611
 
Total Financial Services Liabilities
 
 
-
 
 
 
-
 
 
 
149,385
 
 
 
(8,660
)
 
 
140,725
 
Total Liabilities
 
 
914,426
 
 
 
1,629,506
 
 
 
174,888
 
 
 
(1,559,213
)
 
 
1,159,607
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Stockholders' Equity
 
 
1,256,292
 
 
 
226,024
 
 
 
41,167
 
 
 
(267,191
)
 
 
1,256,292
 
Total Liabilities and Stockholders' Equity
 
$
2,170,718
 
 
$
1,855,530
 
 
$
216,055
 
 
$
(1,826,404
)
 
$
2,415,899
 
 
M.D.C. Holdings, Inc.
Supplemental
Condensed
Combining Statements
of
Operations and Comprehensive Income
 
   
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Non-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantor
 
 
Guarantor
 
 
Eliminating
 
 
Consolidated
 
 
 
MDC
 
 
Subsidiaries
 
 
Subsidiaries
 
 
Entries
 
 
MDC
 
 
 
(Dollars in thousands)
 
Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
-
 
 
$
2,262,853
 
 
$
-
 
 
$
-
 
 
$
2,262,853
 
Cost of Sales
 
 
-
 
 
 
(1,888,957
)
 
 
(300
)
 
 
-
 
 
 
(1,889,257
)
Inventory impairments
 
 
-
 
 
 
(10,173
)
 
 
-
 
 
 
-
 
 
 
(10,173
)
Gross margin
 
 
-
 
 
 
363,723
 
 
 
(300
)
 
 
-
 
 
 
363,423
 
Selling, general, and administrative expenses
 
 
(39,632
)
 
 
(210,546
)
 
 
-
 
 
 
(362
)
 
 
(250,540
)
Equity income of subsidiaries
 
 
125,431
 
 
 
-
 
 
 
-
 
 
 
(125,431
)
 
 
-
 
Interest and other income
 
 
5,236
 
 
 
2,188
 
 
 
5
 
 
 
(417
)
 
 
7,012
 
Other expense
 
 
1
 
 
 
(3,448
)
 
 
-
 
 
 
-
 
 
 
(3,447
)
Other-than-temporary impairment of marketable securities
 
 
(1,070
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(1,070
)
Homebuilding pretax income (loss)
 
 
89,966
 
 
 
151,917
 
 
 
(295
)
 
 
(126,210
)
 
 
115,378
 
Financial Services:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial services pretax income
 
 
-
 
 
 
-
 
 
 
35,624
 
 
 
779
 
 
 
36,403
 
Income before income taxes
 
 
89,966
 
 
 
151,917
 
 
 
35,329
 
 
 
(125,431
)
 
 
151,781
 
Provision for income taxes
 
 
13,245
 
 
 
(48,613
)
 
 
(13,202
)
 
 
-
 
 
 
(48,570
)
Net income
 
$
103,211
 
 
$
103,304
 
 
$
22,127
 
 
$
(125,431
)
 
$
103,211
 
Other comprehensive income related to available-for-sale securities, net of tax
 
 
6,356
 
 
 
-
 
 
 
1,084
 
 
 
(1,084
)
 
 
6,356
 
Comprehensive income
 
$
109,567
 
 
$
103,304
 
 
$
23,211
 
 
$
(126,515
)
 
$
109,567
 
 
   
Year Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Non-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantor
 
 
Guarantor
 
 
Eliminating
 
 
Consolidated
 
 
 
MDC
 
 
Subsidiaries
 
 
Subsidiaries
 
 
Entries
 
 
MDC
 
 
 
(Dollars in thousands)
 
Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
-
 
 
$
1,860,226
 
 
$
-
 
 
$
-
 
 
$
1,860,226
 
Cost of Sales
 
 
-
 
 
 
(1,551,907
)
 
 
(100
)
 
 
-
 
 
 
(1,552,007
)
Inventory impairments
 
 
-
 
 
 
(9,993
)
 
 
-
 
 
 
-
 
 
 
(9,993
)
Gross margin
 
 
-
 
 
 
298,326
 
 
 
(100
)
 
 
-
 
 
 
298,226
 
Selling, general, and administrative expenses
 
 
(40,356
)
 
 
(185,403
)
 
 
-
 
 
 
(558
)
 
 
(226,317
)
Equity income of subsidiaries
 
 
91,079
 
 
 
-
 
 
 
-
 
 
 
(91,079
)
 
 
-
 
Interest and other income
 
 
4,635
 
 
 
2,651
 
 
 
8
 
 
 
(585
)
 
 
6,709
 
Other expense
 
 
(6
)
 
 
(4,202
)
 
 
-
 
 
 
-
 
 
 
(4,208
)
Other-than-temporary impairment of marketable securities
 
 
(3,969
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(3,969
)
Homebuilding pretax income (loss)
 
 
51,383
 
 
 
111,372
 
 
 
(92
)
 
 
(92,222
)
 
 
70,441
 
Financial Services:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial services pretax income
 
 
-
 
 
 
-
 
 
 
29,840
 
 
 
1,143
 
 
 
30,983
 
Income before income taxes
 
 
51,383
 
 
 
111,372
 
 
 
29,748
 
 
 
(91,079
)
 
 
101,424
 
Provision for income taxes
 
 
14,408
 
 
 
(39,128
)
 
 
(10,913
)
 
 
-
 
 
 
(35,633
)
Net income
 
$
65,791
 
 
$
72,244
 
 
$
18,835
 
 
$
(91,079
)
 
$
65,791
 
Other comprehensive income related to available-for-sale securities, net of tax
 
 
5,260
 
 
 
-
 
 
 
(674
)
 
 
674
 
 
 
5,260
 
Comprehensive income
 
$
71,051
 
 
$
72,244
 
 
$
18,161
 
 
$
(90,405
)
 
$
71,051
 
 
M.D.C. Holdings, Inc.
Supplemental
Condensed
Combining Statement
of
Operations and Comprehensive Income
 
   
Year Ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
Non-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantor
 
 
Guarantor
 
 
Eliminating
 
 
Consolidated
 
 
 
MDC
 
 
Subsidiaries
 
 
Subsidiaries
 
 
Entries
 
 
MDC
 
 
 
(Dollars in thousands)
 
Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
-
 
 
$
1,650,631
 
 
$
-
 
 
$
-
 
 
$
1,650,631
 
Cost of Sales
 
 
-
 
 
 
(1,368,140
)
 
 
(40
)
 
 
-
 
 
 
(1,368,180
)
Inventory impairments
 
 
-
 
 
 
(1,760
)
 
 
-
 
 
 
-
 
 
 
(1,760
)
Gross margin
 
 
-
 
 
 
280,731
 
 
 
(40
)
 
 
-
 
 
 
280,691
 
Selling, general, and administrative expenses
 
 
(38,290
)
 
 
(164,287
)
 
 
-
 
 
 
(676
)
 
 
(203,253
)
Equity income of subsidiaries
 
 
86,223
 
 
 
-
 
 
 
-
 
 
 
(86,223
)
 
 
-
 
Interest and other income
 
 
24,824
 
 
 
1,517
 
 
 
15
 
 
 
(46
)
 
 
26,310
 
Interest expense
 
 
(685
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(685
)
Other expense
 
 
(8
)
 
 
(4,805
)
 
 
-
 
 
 
-
 
 
 
(4,813
)
Losses from early extinguishments of debt
 
 
(18,153
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(18,153
)
Other-than-temporary impairment of marketable securities
 
 
(4,293
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(4,293
)
Homebuilding pretax income (loss)
 
 
49,618
 
 
 
113,156
 
 
 
(25
)
 
 
(86,945
)
 
 
75,804
 
Financial Services:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial services pretax income
 
 
-
 
 
 
-
 
 
 
23,949
 
 
 
722
 
 
 
24,671
 
Income before income taxes
 
 
49,618
 
 
 
113,156
 
 
 
23,924
 
 
 
(86,223
)
 
 
100,475
 
Provision for income taxes
 
 
13,525
 
 
 
(42,044
)
 
 
(8,813
)
 
 
-
 
 
 
(37,332
)
Net income
 
$
63,143
 
 
$
71,112
 
 
$
15,111
 
 
$
(86,223
)
 
$
63,143
 
Other comprehensive income related to available-for-sale securities, net of tax
 
 
(1,120
)
 
 
-
 
 
 
(22
)
 
 
22
 
 
 
(1,120
)
Comprehensive income
 
$
62,023
 
 
$
71,112
 
 
$
15,089
 
 
$
(86,201
)
 
$
62,023
 
 
M.D.C. Holdings, Inc.
Supplementa
l Condensed Combining Statement
of Cash Flows
 
   
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Non-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantor
 
 
Guarantor
 
 
Eliminating
 
 
Consolidated
 
 
 
MDC
 
 
Subsidiaries
 
 
Subsidiaries
 
 
Entries
 
 
MDC
 
 
 
(Dollars in thousands)
 
Net cash provided by (used in) operating activities
 
$
(4,807
)
 
$
124,929
 
 
$
(4,205
)
 
$ 
-
 
 
$
115,917
 
Net cash provided by (used in) investing activities
 
 
168,329
 
 
 
(1,481
)
 
 
(23,779
)
 
 
(133,851
)
 
 
9,218
 
Financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments from (advances to) subsidiaries
 
 
-
 
 
 
(123,137
)
 
 
(10,714
)
 
 
133,851
 
 
 
-
 
Advances on mortgage repurchase facility, net
 
 
-
 
 
 
-
 
 
 
25,874
 
 
 
-
 
 
 
25,874
 
Proceeds from issuance of senior notes
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Repayment of senior notes
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Advances on revolving credit facility, net
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Dividend payments
 
 
(49,088
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(49,088
)
Excess tax benefits from stock-based compensation
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Proceeds from exercise of stock options
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Net cash provided by (used in) financing activities
 
 
(49,088
)
 
 
(123,137
)
 
 
15,160
 
 
 
133,851
 
 
 
(23,214
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
 
 
114,434
 
 
 
311
 
 
 
(12,824
)
 
 
-
 
 
 
101,921
 
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning of period
 
 
141,245
 
 
 
3,097
 
 
 
36,646
 
 
 
-
 
 
 
180,988
 
End of period
 
$
255,679
 
 
$
3,408
 
 
$
23,822
 
 
$
-
 
 
$
282,909
 
 
   
Year Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Non-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantor
 
 
Guarantor
 
 
Eliminating
 
 
Consolidated
 
 
 
MDC
 
 
Subsidiaries
 
 
Subsidiaries
 
 
Entries
 
 
MDC
 
 
 
(Dollars in thousands)
 
Net cash provided by (used in) operating activities
 
$
31,030
 
 
$
(16,109
)
 
$
(14,706
)
 
$
-
 
 
$
215
 
Net cash provided by (used in) investing activities
 
 
38,467
 
 
 
(811
)
 
 
3,260
 
 
 
6,446
 
 
 
47,362
 
Financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments from (advances to) subsidiaries
 
 
-
 
 
 
17,326
 
 
 
(10,880
)
 
 
(6,446
)
 
 
-
 
Advances on mortgage repurchase facility, net
 
 
-
 
 
 
-
 
 
 
27,789
 
 
 
-
 
 
 
27,789
 
Proceeds from issuance of senior notes
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Repayment of senior notes
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Advances on revolving credit facility, net
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Dividend payments
 
 
(48,868
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(48,868
)
Excess tax benefits from stock-based compensation
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Proceeds from exercise of stock options
 
 
665
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
665
 
Net cash provided by (used in) financing activities
 
 
(48,203
)
 
 
17,326
 
 
 
16,909
 
 
 
(6,446
)
 
 
(20,414
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
 
 
21,294
 
 
 
406
 
 
 
5,463
 
 
 
-
 
 
 
27,163
 
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning of period
 
 
119,951
 
 
 
2,691
 
 
 
31,183
 
 
 
-
 
 
 
153,825
 
End of period
 
$
141,245
 
 
$
3,097
 
 
$
36,646
 
 
$
-
 
 
$
180,988
 
 
M.D.C. Holdings, Inc.
Supplementa
l Condensed Combining Statement
of Cash Flows
 
   
Year Ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
Non-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantor
 
 
Guarantor
 
 
Eliminating
 
 
Consolidated
 
 
 
MDC
 
 
Subsidiaries
 
 
Subsidiaries
 
 
Entries
 
 
MDC
 
 
 
(Dollars in thousands)
 
Net cash provided by (used in) operating activities
 
$
(62,289
)
 
$
(124,317
)
 
$
22,959
 
 
$
-
 
 
$
(163,647
)
Net cash provided by (used in) investing activities
 
 
339,754
 
 
 
(1,093
)
 
 
3,692
 
 
 
80,727
 
 
 
423,080
 
Financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments from (advances to) subsidiaries
 
 
-
 
 
 
124,647
 
 
 
(43,920
)
 
 
(80,727
)
 
 
-
 
Advances on mortgage repurchase facility, net
 
 
-
 
 
 
-
 
 
 
(2,252
)
 
 
-
 
 
 
(2,252
)
Proceeds from the issuance of senior notes
 
 
248,375
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
248,375
 
Repayment of senior notes
 
 
(517,650
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(517,650
)
Advances on revolving credit facility, net
 
 
15,000
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
15,000
 
Dividend payments
 
 
(48,820
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(48,820
)
Excess tax benefit from share-based awards
 
 
26
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
26
 
Proceeds from the exercise of stock options
 
 
375
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
375
 
Net cash provided by (used in) financing activities
 
 
(302,694
)
 
 
124,647
 
 
 
(46,172
)
 
 
(80,727
)
 
 
(304,946
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
 
 
(25,229
)
 
 
(763
)
 
 
(19,521
)
 
 
-
 
 
 
(45,513
)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning of period
 
 
145,180
 
 
 
3,454
 
 
 
50,704
 
 
 
-
 
 
 
199,338
 
End of period
 
$
119,951
 
 
$
2,691
 
 
$
31,183
 
 
$
-
 
 
$
153,825