Cash, Cash Equivalents and Restricted Cash

9 Months Ended

Sep. 30, 2011

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

Note 3.  Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents totaled $154.5 million and $226.6 million at September 30, 2011 and December 31, 2010, respectively. The Company considers all highly liquid short-term investments purchased with an original maturity of three months or less and cash held in escrow accounts to be cash equivalents.

At September 30, 2011 and December 31, 2010, the Company had restricted cash of $68.5 million and $74.8 million, respectively. The Company has various secured letter of credit agreements that require it to maintain cash deposits as collateral for outstanding letters of credit. Cash restricted under these agreements totaled $67.4 million and $74.7 million at September 30, 2011 and December 31, 2010, respectively. In addition, Ryland Mortgage Company and its subsidiaries and RMC Mortgage Corporation (collectively referred to as “RMC”) had restricted cash for funds held in trust for third parties of $1.1 million and $100,000 at September 30, 2011 and December 31, 2010, respectively.