Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 02, 2016 | |
Entity Registrant Name | MDC HOLDINGS INC | |
Entity Central Index Key | 773,141 | |
Trading Symbol | mdc | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 49,008,835 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Homebuilding [Member] | |||
ASSETS | |||
Cash and cash equivalents | $ 99,031 | $ 144,342 | |
Marketable securities | 77,154 | 92,387 | |
Restricted cash | 3,349 | 3,750 | |
Trade and other receivables | 38,096 | 23,314 | |
Inventories: | |||
Housing completed or under construction | 862,515 | 747,036 | |
Land and land under development | 948,767 | 1,016,926 | |
Total inventories | 1,811,282 | 1,763,962 | |
Property and equipment, net | 29,374 | 28,226 | |
Deferred tax asset, net | 95,880 | 99,107 | |
Metropolitan district bond securities (related party) | 27,277 | 25,911 | |
Prepaid and other assets | 62,932 | 65,394 | |
Total homebuilding assets | 2,244,375 | 2,246,393 | |
Cash and cash equivalents | 99,031 | 144,342 | |
Marketable securities | 77,154 | 92,387 | |
LIABILITIES AND EQUITY | |||
Accounts payable | 46,669 | 40,472 | |
Accrued liabilities | 110,791 | 122,886 | |
Revolving credit facility | 15,000 | 15,000 | |
Senior notes, net | 840,798 | 840,524 | |
Total homebuilding liabilities | 1,013,258 | 1,018,882 | |
Financial Services [Member] | |||
ASSETS | |||
Cash and cash equivalents | 39,504 | 36,646 | |
Marketable securities | 12,268 | 11,307 | |
Inventories: | |||
Total homebuilding assets | 141,431 | 169,506 | |
Cash and cash equivalents | 39,504 | 36,646 | |
Marketable securities | 12,268 | 11,307 | |
Mortgage loans held-for-sale, net | 82,193 | 115,670 | |
Other assets | 7,466 | 5,883 | |
LIABILITIES AND EQUITY | |||
Total homebuilding liabilities | 114,254 | 140,725 | |
Accounts payable and accrued liabilities | 54,033 | 52,114 | |
Mortgage repurchase facility | 60,221 | 88,611 | |
Cash and cash equivalents | 138,535 | 180,988 | |
Housing completed or under construction | 862,515 | 747,036 | |
Land and land under development | 948,767 | 1,016,926 | |
Total inventories | 1,811,282 | 1,763,962 | |
Deferred tax asset, net | 95,900 | 99,100 | |
Total homebuilding assets | 2,385,806 | 2,415,899 | |
Cash and cash equivalents | 138,535 | 180,988 | |
Total homebuilding liabilities | $ 1,127,512 | $ 1,159,607 | |
Stockholders' Equity | |||
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding | |||
Common stock, $0.01 par value; 250,000,000 shares authorized; 49,006,835 and 48,888,424 issued and outstanding at March 31, 2016 and December 31, 2015, respectively | $ 490 | $ 489 | |
Additional paid-in-capital | 918,488 | 915,746 | |
Retained earnings | 321,653 | 324,342 | |
Accumulated other comprehensive income | 17,663 | [1] | 15,715 |
Total Stockholders' Equity | 1,258,294 | 1,256,292 | |
Total Liabilities and Stockholders' Equity | $ 2,385,806 | $ 2,415,899 | |
[1] | All amounts net-of-tax. |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 49,006,835 | 48,888,424 |
Common stock, shares outstanding (in shares) | 49,006,835 | 48,888,424 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Homebuilding [Member] | ||
Home sale revenues | $ 394,420,000 | $ 377,009,000 |
Land sale revenues | 2,324,000 | 910,000 |
Total home and land sale revenues | 396,744,000 | 377,919,000 |
Home cost of sales | (330,026,000) | (318,642,000) |
Land cost of sales | $ (1,663,000) | (1,125,000) |
Inventory impairments | (350,000) | |
Total cost of sales | $ (331,689,000) | (320,117,000) |
Gross margin | 65,055,000 | 57,802,000 |
Selling, general and administrative expenses | (56,277,000) | (50,532,000) |
Financial services interest and other income | 1,850,000 | 1,865,000 |
Other expense | (1,541,000) | $ (1,145,000) |
Other-than-temporary impairment of marketable securities | (431,000) | |
Homebuilding pretax income | 8,656,000 | $ 7,990,000 |
Financial Services [Member] | ||
Homebuilding pretax income | 5,617,000 | 5,336,000 |
Revenues | 11,017,000 | 10,591,000 |
Expenses | (6,241,000) | (6,159,000) |
Interest and other income | $ 841,000 | 904,000 |
Inventory impairments | (350,000) | |
Other-than-temporary impairment of marketable securities | $ (431,000) | 0 |
Homebuilding pretax income | 14,273,000 | 13,326,000 |
Provision for income taxes | (4,710,000) | (4,906,000) |
Net income | 9,563,000 | 8,420,000 |
Other comprehensive income related to available for sale securities, net of tax | 1,948,000 | 1,308,000 |
Comprehensive income | $ 11,511,000 | $ 9,728,000 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.20 | $ 0.17 |
Diluted (in dollars per share) | $ 0.20 | $ 0.17 |
Weighted average common shares outstanding | ||
Basic (in shares) | 48,827,971 | 48,714,637 |
Diluted (in shares) | 48,833,444 | 48,891,514 |
Dividends declared per share (in dollars per share) | $ 0.25 | $ 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Housing Completed or Under Construction [Member] | ||
Net changes in assets and liabilities: | ||
Housing completed or under construction | $ (115,357,000) | $ 4,282,000 |
Land and Land Under Development [Member] | ||
Net changes in assets and liabilities: | ||
Housing completed or under construction | 68,311,000 | (1,274,000) |
Net income | 9,563,000 | 8,420,000 |
Stock-based compensation expense | 2,987,000 | 875,000 |
Depreciation and amortization | $ 1,073,000 | 1,083,000 |
Inventory impairments | 350,000 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 431,000 | 0 |
Loss on sale of marketable securities | $ 915,000 | 11,000 |
Amortization of discount / premiums on marketable debt securities, net | 59,000 | |
Deferred income tax expense | $ 1,788,000 | 4,713,000 |
Restricted cash | 401,000 | (1,444,000) |
Trade and other receivables | (15,251,000) | (6,141,000) |
Mortgage loans held-for-sale | 33,477,000 | 23,684,000 |
Prepaid expenses and other assets | 911,000 | 489,000 |
Accounts payable and accrued liabilities | (4,234,000) | (19,681,000) |
Net cash provided by (used in) operating activities | (14,985,000) | 15,426,000 |
Investing Activities: | ||
Purchases of marketable securities | $ (5,482,000) | (20,484,000) |
Maturities of marketable securities | 1,510,000 | |
Sales of marketable securities | $ 20,600,000 | 12,976,000 |
Purchases of property and equipment | (1,944,000) | (340,000) |
Net cash provided by (used in) investing activities | 13,174,000 | (6,338,000) |
Financing Activities: | ||
Payments on mortgage repurchase facility, net | (28,390,000) | (20,785,000) |
Dividend payments | (12,252,000) | (12,213,000) |
Net cash used in financing activities | (40,642,000) | (32,998,000) |
Net decrease in cash and cash equivalents | (42,453,000) | (23,910,000) |
Cash and cash equivalents: | ||
Beginning of period | 180,988,000 | 153,825,000 |
End of period | $ 138,535,000 | $ 129,915,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. Basis of Presentation The Unaudited Consolidated Financial Statements of M.D.C. Holdings, Inc. ("MDC," “the Company," “we,” “us,” or “our” which refers to M.D.C. Holdings, Inc. and its subsidiaries) have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. These statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows of MDC at March 31, 2016 and for all periods presented. Certain prior year balances have been reclassified to conform to the current year’s presentation. These statements should be read in conjunction with MDC’s Consolidated Financial Statements and Notes thereto included in MDC’s Annual Report on Form 10-K for the year ended December 31, 2015. |
Note 2 - Recently Issued Accoun
Note 2 - Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 2. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) : Amendments to the Consolidation Analysis Consolidation In January 2016, the FASB issued ASU 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases I n March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting Compensation – Stock Compensation We are currently evaluating the method of adoption and impact the update will have on our consolidated financial statements and related disclosures. |
Note 3 - Segment Reporting
Note 3 - Segment Reporting | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 3. Segment Reporting An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, to evaluate performance and make operating decisions. We have identified our CODM as two key executives—the Chief Executive Officer and the Chief Operating Officer. We have identified each homebuilding division as an operating segment. Our homebuilding operating segments have been aggregated into the reportable segments noted below because they are similar in the following regards: (1) economic characteristics; (2) housing products; (3) class of homebuyer; (4) regulatory environments; and (5) methods used to construct and sell homes. Our homebuilding reportable segments are as follows: ● West (Arizona, California, Nevada and Washington) ● Mountain (Colorado and Utah) ● East (Virginia, Florida and Maryland, which includes Pennsylvania and New Jersey) Our financial services business consists of the operations of the following operating segments: (1) HomeAmerican Mortgage Corporation (“HomeAmerican”); (2) Allegiant Insurance Company, Inc., A Risk Retention Group (“Allegiant”); (3) StarAmerican Insurance Ltd. (“StarAmerican”); (4) American Home Insurance Agency, Inc.; and (5) American Home Title and Escrow Company. Due to its contributions to consolidated pretax income, we consider HomeAmerican to be a reportable segment (“mortgage operations”). The remaining operating segments have been aggregated into one reportable segment (“other”) because they do not individually exceed 10 percent of: (1) consolidated revenue; (2) the greater of (a) the combined reported profit of all operating segments that did not report a loss or (b) the positive value of the combined reported loss of all operating segments that reported losses; or (3) consolidated assets. Corporate is a non-operating segment that develops and implements strategic initiatives and supports our operating divisions by centralizing key administrative functions such as finance and treasury, information technology, insurance and risk management, litigation and human resources. Corporate also provides the necessary administrative functions to support MDC as a publicly traded company. A portion of the expenses incurred by Corporate are allocated to the homebuilding operating segments based on their respective percentages of assets, and to a lesser degree, a portion of Corporate expenses are allocated to the financial services segments. A majority of Corporate’s personnel and resources are primarily dedicated to activities relating to the homebuilding segments, and, therefore, the balance of any unallocated Corporate expenses is included in our homebuilding operations. The following table summarizes home and land sale revenues for our homebuilding operations and revenues for our financial services operations. Three Months Ended March 31, 2016 2015 (Dollars in thousands) Homebuilding West $ 191,375 $ 176,817 Mountain 137,824 124,021 East 67,545 77,081 Total homebuilding revenues $ 396,744 $ 377,919 Financial Services Mortgage operations $ 6,870 $ 6,649 Other 4,147 3,942 Total financial services revenues $ 11,017 $ 10,591 The following table summarizes pretax income (loss) for our homebuilding and financial services operations: Three Months Ended March 31, 2016 2015 (Dollars in thousands) Homebuilding West $ 9,698 $ 8,503 Mountain 10,084 7,420 East 1,367 (421 ) Corporate (12,493 ) (7,512 ) Total homebuilding pretax income $ 8,656 $ 7,990 Financial Services Mortgage operations $ 3,323 $ 2,792 Other 2,294 2,544 Total financial services pretax income $ 5,617 $ 5,336 Total pretax income $ 14,273 $ 13,326 The following table summarizes total assets for our homebuilding and financial services operations. The assets in our West, Mountain and East segments consist primarily of inventory while the assets in our Corporate segment primarily include our cash and cash equivalents, marketable securities and deferred tax assets. The assets in our financial services segment consist mostly of cash and cash equivalents, marketable securities and mortgage loans held-for-sale. March 31, December 31, 2016 2015 (Dollars in thousands) Homebuilding assets West $ 1,041,898 $ 991,393 Mountain 539,308 536,831 East 331,421 324,457 Corporate 331,748 393,712 Total homebuilding assets $ 2,244,375 $ 2,246,393 Financial services assets Mortgage operations $ 92,941 $ 123,176 Other 48,490 46,330 Total financial services assets $ 141,431 $ 169,506 Total assets $ 2,385,806 $ 2,415,899 |
Note 4 - Earnings Per Share
Note 4 - Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 4 . Earnings Per Share ASC Topic 260, Earnings Per Share company that has participating security holders (for example, holders of unvested restricted stock that has nonforfeitable dividend rights) to utilize the two-class method for calculating earnings per share (“EPS”) unless the treasury stock method results in lower EPS. The two-class method is an allocation of earnings/(loss) between the holders of common stock and a company’s participating security holders. Under the two-class method, earnings/(loss) for the reporting period are allocated between common shareholders and other security holders based on their respective rights to receive distributed earnings (i.e., dividends) and undistributed earnings (i.e., net income/(loss)). Our common shares outstanding are comprised of shareholder owned common stock and participating security holders consisting of shareholders of unvested restricted stock. Basic EPS is calculated by dividing income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding, excluding participating shares in accordance with ASC 260 . To calculate diluted EPS, basic EPS is further adjusted to include the effect of potential dilutive stock options outstanding. The following table shows basic and diluted EPS calculations: Three Months Ended March 31, 2016 2015 (Dollars in thousands, except per share amounts) Numerator Net income $ 9,563 $ 8,420 Less: distributed earnings allocated to participating securities (40 ) (25 ) Less: undistributed earnings allocated to participating securities - - Net income attributable to common stockholders (numerator for basic earnings per share) 9,523 8,395 Add back: undistributed earnings allocated to participating securities - - Less: undistributed earnings reallocated to participating securities - - Numerator for diluted earnings per share under two class method $ 9,523 $ 8,395 Denominator Weighted-average common shares outstanding 48,827,971 48,714,637 Add: dilutive effect of stock options 5,473 176,877 Denominator for diluted earnings per share under two class method 48,833,444 48,891,514 Basic Earnings Per Common Share $ 0.20 $ 0.17 Diluted Earnings Per Common Share $ 0.20 $ 0.17 Diluted EPS for the three months ended March 31, 2016 excluded options to purchase approximately 6.6 million shares of common stock because the effect of their inclusion would be anti-dilutive. For the same period in 2015, diluted EPS excluded options to purchase approximately 3.7 million shares. |
Note 5 - Accumulated Other Comp
Note 5 - Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 5 . Accumulated Other Comprehensive Income The following table sets forth our changes in accumulated other comprehensive income (“AOCI”): Three Months Ended March 31, 2016 2015 (Dollars in thousands) Unrealized gains on available-for-sale marketable securities 1 Beginning balance $ 3,657 $ 2,775 Other comprehensive income (loss) before reclassifications 524 360 Amounts reclassified from AOCI 2 835 7 Ending balance $ 5,016 $ 3,142 Unrealized gains on available-for-sale metropolitan district bond securities 1 Beginning balance $ 12,058 $ 7,680 Other comprehensive income before reclassifications 589 941 Amounts reclassified from AOCI - - Ending balance $ 12,647 $ 8,621 Total ending AOCI $ 17,663 $ 11,763 _______________________ (1) All amounts net-of-tax. (2) See separate table below for details about these reclassifications The following table sets forth the activity related to reclassifications out of accumulated other comprehensive income related to available for sale securities: Three Months Ended March 31, Affected Line Item in the Statements of Operations 2016 2015 (Dollars in thousands) Homebuilding other expense $ (915 ) $ (12 ) Other-than-temporary impairment of marketable securities (431 ) - Financial services interest and other income - 1 Income before income taxes (1,346 ) (11 ) Provision for income taxes 511 4 Net income $ (835 ) $ (7 ) |
Note 6 - Fair Value Measurement
Note 6 - Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 6 . Fair Value Measurements ASC Topic 820, Fair Value Measurements The following table sets forth the fair values and methods used for measuring the fair values of financial instruments on a recurring basis: Fair Value Financial Instrument Hierarchy March 31, 2016 December 31, 2015 (Dollars in thousands) Marketable equity securities (available-for-sale) Level 1 $ 89,422 $ 103,694 Mortgage loans held-for-sale, net Level 2 $ 82,193 $ 115,670 Metropolitan district bond securities (related party) (available-for-sale) Level 3 $ 27,277 $ 25,911 The following methods and assumptions were used to estimate the fair value of each class of financial instruments as of March 31, 2016 and December 31, 2015. Cash and cash equivalents, restricted cash, trade and other receivables, prepaid and other assets, accounts payable, accrued liab ilities and borrowings on our revolving credit facility . Marketable Securities Each quarter we assess all of our securities in an unrealized loss position for a potential other-than-temporary impairment (“OTTI”) . If the unrealized loss is determined to be other-than-temporary, an OTTI is recorded in the consolidated statements of operations and comprehensive income. During the three months ended March 31, 2016, we recorded a pretax OTTI of $0.4 million for certain of our equity securities that were in an unrealized loss position as of the end of the quarter. The OTTI is included in other-than-temporary impairment of marketable securities in the homebuilding section of our consolidated statements of operations and comprehensive income . No such impairments were recorded during the three months ended March 31, 2015. The following tables set forth the cost and fair value of our marketable equity securities: March 31, 2016 Original Cost Basis OTTI Net Cost Basis Fair Value (Dollars in thousands) Homebuilding equity securities $ 70,666 $ (2,324 ) $ 68,342 $ 77,154 Financial services equity securities 12,988 - 12,988 12,268 Total marketable equity securities $ 83,654 $ (2,324 ) $ 81,330 $ 89,422 December 31, 2015 Original Cost Basis OTTI Net Cost Basis Fair Value (Dollars in thousands) Homebuilding equity securities $ 89,738 $ (3,969 ) $ 85,769 $ 92,387 Financial services equity securities 12,026 - 12,026 11,307 Total marketable equity securities $ 101,764 $ (3,969 ) $ 97,795 $ 103,694 As of March 31, 2016 and December 31, 2015, our marketable equity securities were in a net unrealized gain position totaling $8.1 million and $5.9 million, respectively. The table below sets forth the aggregated unrealized losses for individual equity securities that were in unrealized loss positions but did not have OTTIs recognized. We do not believe the decline in the value of these marketable securities as of March 31, 2016 is other-than-temporary. March 31, 2016 December 31, 2015 Number of Securities in an Unrealized Loss Position Aggregate Unrealized Loss Position Aggregate Fair Value of Securities in an Unrealized Loss Position Number of Securities in an Unrealized Loss Position Aggregate Unrealized Loss Position Aggregate Fair Value of Securities in an Unrealized Loss Position (Dollars in thousands) Marketable equity securities 5 $ (925 ) $ 7,102 4 $ (882 ) $ 6,116 The table below sets forth gross realized gains and losses from the sale of available-for-sale marketable securities, which were included in other expense in the homebuilding section, or interest and other income in the financial services section, of our consolidated statements of operations and comprehensive income. Some of the losses realized in the current year may have been recognized in prior years through an OTTI. Three Months Ended March 31, 2016 2015 (Dollars in thousands) Gross realized gains on sales of available-for-sale securities Equity securities $ 91 $ 237 Debt securities - 166 Total $ 91 $ 403 Gross realized losses on sales of available-for-sale securities Equity securities $ (1,006 ) $ (325 ) Debt securities - (89 ) Total $ (1,006 ) $ (414 ) Net realized loss on sales of available-for-sale securities $ (915 ) $ (11 ) Mortgage Loans Held-for- Sale, Net. Gains on sales of mortgage loans, net, were $5.6 million and $4.4 million for the three months ended March 31, 2016 and 2015, respectively, and are included as a component of revenues in the financial services section of the consolidated statements of operations and comprehensive income. Metropolitan District Bond Securities (Related Party). In accordance with ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality Quantitative Data Sensitivity Analysis Unobservable Input Range Weighted Average Movement in Movement in Number of homes closed per year 0 to 113 91 Increase Decrease Average sales price $418,000 to $1,200,000 $486,000 Increase Decrease Discount rates 5% to 12% 7.4% Decrease Increase The table set forth below summarizes the activity for our Metro Bonds: Three Months Ended March 31, 2016 2015 (Dollars in thousands) Balance at beginning of period $ 25,911 $ 18,203 Increase in fair value (recorded in other comprehensive income) 950 1,418 Change due to accretion of principal 416 357 Cash receipts - - Balance at end of period $ 27,277 $ 19,978 Mortgage Repurchase Facility. The debt associated with our mortgage repurchase facility (see Note 18 for further discussion) is at floating rates or at fixed rates that approximate current market rates and have relatively short-term maturities, generally within 30 days. The fair value approximates carrying value and is based on Level 2 inputs. Senior Notes March 31, 2016 December 31, 2015 Carrying Fair Value Carrying Fair Value (Dollars in thousands) 5⅝% Senior Notes due February 2020, net $ 246,247 $ 252,592 $ 246,032 $ 257,813 5½% Senior Notes due January 2024, net 248,254 239,833 248,209 252,188 6% Senior Notes due January 2043, net 346,297 268,753 346,283 276,938 Total $ 840,798 $ 761,178 $ 840,524 $ 786,939 |
Note 7 - Inventories
Note 7 - Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 7 . Inventories The following table sets forth, by reportable segment, information relating to our homebuilding inventories: March 31, December 31, 2016 2015 (Dollars in thousands) Housing Completed or Under Construction: West $ 440,914 $ 365,867 Mountain 277,542 253,578 East 144,059 127,591 Subtotal 862,515 747,036 Land and Land Under Development: West 549,559 580,682 Mountain 236,702 259,484 East 162,506 176,760 Subtotal 948,767 1,016,926 Total Inventories $ 1,811,282 $ 1,763,962 Our inventories are primarily associated with communities where we intend to construct and sell homes, including models and unsold homes (defined as homes under construction without a sales contract). Costs capitalized to land and land under development primarily include: (1) land costs; (2) land development costs; (3) entitlement costs; (4) capitalized interest; (5) engineering fees; and (6) title insurance, real property taxes and closing costs directly related to the purchase of the land parcel. Components of housing completed or under construction primarily include: (1) land costs transferred from land and land under development; (2) direct construction costs associated with a house; (3) real property taxes, engineering fees, permits and other fees; (4) capitalized interest; and (5) indirect construction costs, which include field construction management salaries and benefits, utilities and other construction related costs. Land costs are transferred from land and land under development to housing completed or under construction at the point in time that construction of a home on an owned lot begins. In accordance with ASC Topic 360, Property, Plant, and Equipment • actual and trending “Operating Margin” (which is defined as home sale revenues less home cost of sales and all direct incremental costs associated with the home closing, including sales commissions) for homes closed; • estimated future undiscounted cash flows and Operating Margin; • forecasted Operating Margin for homes in backlog; • actual and trending net and gross home orders; • base sales price and home sales incentive information for homes closed, homes in backlog and homes available for sale; • market information for each sub-market, including competition levels, home foreclosure levels, the size and style of homes currently being offered for sale and lot size; and • known or probable events indicating that the carrying value may not be recoverable. If events or circumstances indicate that the carrying value of our inventory may not be recoverable, assets are reviewed for impairment by comparing the undiscounted estimated future cash flows from an individual subdivision (including capitalized interest) to its carrying value. If the undiscounted future cash flows are less than the subdivision’s carrying value, the carrying value of the subdivision is written down to its then estimated fair value. We generally determine the estimated fair value of each subdivision by determining the present value of the estimated future cash flows at discount rates, which are Level 3 inputs, that are commensurate with the risk of the subdivision under evaluation. The evaluation for the recoverability of the carrying value of the assets for each individual subdivision can be impacted significantly by our estimates of future home sale revenues, home construction costs, and development costs per home, all of which are Level 3 inputs. If land is classified as held for sale, in accordance with ASC 360, we measure it at the lower of the carrying value or fair value less estimated costs to sell. In determining fair value, we primarily rely upon the most recent negotiated price which is a Level 2 input. If a negotiated price is not available, we will consider several factors including, but not limited to, current market conditions, recent comparable sales transactions and market analysis studies. If the fair value less estimated costs to sell is lower than the current carrying value, the land is impaired down to its estimated fair value less costs to sell. Impairments of homebuilding inventory by segment for the three months ended March 31, 2016 and 2015 are shown in the table below. Three Months Ended March 31, 2016 2015 (Dollars in thousands) West $ - $ - Mountain - - East - 350 Total Inventory Impairments $ - $ 350 The table below provides quantitative data, for the periods presented, used in determining the fair value of the impaired inventory. Impairment Data Quantitative Data Three Months Ended Total Inventory Fair Value of Number of Discount Rate (Dollars in thousands) March 31, 2016 14 $ - $ - - N/A March 31, 2015 22 $ 350 $ 3,701 1 8.7% |
Note 8 - Capitalization of Inte
Note 8 - Capitalization of Interest | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Capitalization Disclosure [Text Block] | 8 . Capitalization of Interest We capitalize interest to inventories during the period of development in accordance with ASC Topic 835, Interest The homebuilding interest expensed in the table below relates to the portion of interest incurred where our homebuilding debt exceeded our qualified inventory for such periods in accordance with ASC 835. Three Months Ended March 31, 2016 2015 (Dollars in thousands) Homebuilding interest incurred $ 13,218 $ 13,251 Less: Interest capitalized (13,218 ) (13,251 ) Homebuilding interest expensed $ - $ - Interest capitalized, beginning of period $ 77,541 $ 79,231 Plus: Interest capitalized during period 13,218 13,251 Less: Previously capitalized interest included in home and land cost of sales (10,976 ) (12,491 ) Interest capitalized, end of period $ 79,783 $ 79,991 |
Note 9 - Homebuilding Prepaid E
Note 9 - Homebuilding Prepaid Expenses and Other Assets | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Other Assets Disclosure [Text Block] | 9 . Homebuilding Prepaid Expenses and Other Assets The following table sets forth the components of homebuilding prepaid and other assets: March 31, December 31, 2016 2015 (Dollars in thousands) Land option deposits $ 9,254 $ 11,997 Deferred marketing costs 32,803 31,152 Prepaid expenses 5,978 6,500 Goodwill 6,008 6,008 Deferred debt issuance costs, net 5,287 5,570 Other 3,602 4,167 Total $ 62,932 $ 65,394 |
Note 10 - Homebuilding Accrued
Note 10 - Homebuilding Accrued Liabilities and Financial Services Accounts Payable and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 10 . Homebuilding Accrued Liabilities and Financial Services Accounts Payable and Accrued Liabilities The following table sets forth information relating to homebuilding accrued liabilities: March 31, December 31, 2016 2015 (Dollars in thousands) Customer and escrow deposits $ 26,570 $ 20,717 Warranty accrual 16,852 15,328 Accrued compensation and related expenses 13,926 25,492 Accrued interest 11,031 23,234 Land development and home construction accruals 11,164 11,465 Other accrued liabilities 31,248 26,650 Total accrued liabilities $ 110,791 $ 122,886 The following table sets forth information relating to financial services accounts payable and accrued liabilities: March 31, December 31, 2016 2015 (Dollars in thousands) Insurance reserves $ 46,379 $ 45,811 Accounts payable and other accrued liabilities 7,654 6,303 Total accounts payable and accrued liabilities $ 54,033 $ 52,114 |
Note 11 - Warranty Accrual
Note 11 - Warranty Accrual | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 1 1 . Warranty Accrual Our homes are sold with limited third-party warranties. We record accruals for general and structural warranty claims, as well as accruals for known, unusual warranty-related expenditures. Our warranty accruals are recorded based upon historical payment experience in an amount estimated to be adequate to cover expected costs of materials and outside labor during warranty periods. The determination of the warranty accrual rate for closed homes and the evaluation of our warranty accrual balance at period end are based on an internally developed analysis that includes known facts and interpretations of circumstances, including, among other things, our trends in historical warranty payment levels and warranty payments for claims not considered to be normal and recurring. Our warranty accrual is included in accrued liabilities in the homebuilding section of our consolidated balance sheets and adjustments to our warranty accrual are recorded as an increase or reduction to home cost of sales in the homebuilding section of our consolidated statements of operations and comprehensive income. The table set forth below summarizes accrual, adjustment and payment activity related to our warranty accrual for the three months ended March 31, 2016 and 2015. During the 2016 first quarter, we recorded a $3.0 million adjustment to increase our warranty accrual primarily due to higher than expected recent warranty related expenditures. There was no such adjustment for the three months ended March 31, 2015. Additionally, from time to time, we change our warranty accrual rates based on payment trends. Any changes made to those rates did not materially affect our warranty expense or gross margin from home sales for the three months ended March 31, 2016. Three Months Ended March 31, 2016 2015 (Dollars in thousands) Balance at beginning of period $ 15,328 $ 18,346 Expense provisions 1,452 1,115 Cash payments (2,915 ) (1,700 ) Adjustments 2,987 - Balance at end of period $ 16,852 $ 17,761 |
Note 12 - Insurance Reserves
Note 12 - Insurance Reserves | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | 1 2 . Insurance Reserves The establishment of reserves for estimated losses associated with insurance policies issued by Allegiant and re-insurance agreements issued by StarAmerican are based on actuarial studies that include known facts and interpretations of circumstances, including our experience with similar cases and historical trends involving claim payment patterns, pending levels of unpaid claims, product mix or concentration, claim severity, frequency patterns depending on the business conducted, and changing regulatory and legal environments. It is possible that future changes in the insurance payment experience used in estimating our ultimate insurance losses could have a material impact on our insurance reserves. The table set forth below summarizes the insurance reserve activity for the three months ended March 31, 2016 and 2015. The insurance reserve is included as a component of accrued liabilities in the financial services section of the consolidated balance sheets. Three Months Ended March 31, 2016 2015 (Dollars in thousands) Balance at beginning of period $ 45,811 $ 50,470 Expense provisions 1,388 1,273 Cash payments, net of recoveries (820 ) (1,728 ) Balance at end of period $ 46,379 $ 50,015 In the ordinary course of business, we make payments from our insurance reserves to settle litigation claims arising primarily from our homebuilding activities. These payments are irregular in both their timing and their magnitude. As a result, the cash payments, net of recoveries shown for the three months ended March 31, 2016 and 2015 are not necessarily indicative of what future cash payments will be for subsequent periods. |
Note 13 - Income Taxes
Note 13 - Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 1 3 . Income Taxes At the end of each interim period, we are required to estimate our annual effective tax rate for the fiscal year and use that rate to provide for income taxes for the current year-to-date reporting period. Our overall effective income tax rates were 33.0% and 36.8% for the three months ended March 31, 2016 and 2015, respectively, resulting in income tax expense of $4.7 million and $4.9 million for the same periods, respectively. The year-over-year improvement in our effective tax rate is primarily the result of our estimated 2016 full year effective tax rate (1) including estimated energy credits versus no such estimate as of March 31, 2015 as the credit for both 2015 and 2016 was not approved by the U.S. Congress until December of 2015 and (2) including a domestic manufacturing deduction whereas we were not eligible for this deduction in the prior year due to net operating loss carryforwards. At March 31, 2016 and December 31, 2015 we had deferred tax assets, net of valuation allowances and deferred tax liabilities, of $95.9 million and $99.1 million, respectively. The valuation allowances were related to (1) various state net operating loss carryforwards where realization is more uncertain at this time due to the limited carryforward periods that exist in certain states and (2) the portion of the amount by which the carrying value of our Metro Bonds for tax purposes exceeds our carrying value for book purposes, as we believe realization of that portion is more uncertain at this time. |
Note 14 - Senior Notes
Note 14 - Senior Notes | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 1 4 . Senior Notes The carrying value of our senior notes as of March 31, 2016 and December 31, 2015, net of any unamortized debt issuance costs or discount, were as follows: March 31, December 31, 2016 2015 (Dollars in thousands) 5⅝% Senior Notes due February 2020, net $ 246,247 $ 246,032 5½% Senior Notes due January 2024, net 248,254 248,209 6% Senior Notes due January 2043, net 346,297 346,283 Total $ 840,798 $ 840,524 Our senior notes are not secured and, while the senior note indentures contain some restrictions on secured debt and other transactions, they do not contain financial covenants. Our senior notes are fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by substantially all of our homebuilding segment subsidiaries. |
Note 15 - Stock Based Compensat
Note 15 - Stock Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 15. Stock Based Compensation We account for share-based awards in accordance with ASC 718, which requires the fair value of stock-based compensation awards to be amortized as an expense over the vesting period. Stock-based compensation awards are valued at fair value on the date of grant. The following table sets forth share-based award expense activity for the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 (Dollars in thousands) Stock option grant expense $ 2,650 $ 376 Restricted stock awards expense 337 499 Total stock based compensation $ 2,987 $ 875 On May 18, 2015, the Company granted a non-qualified stock option to each of the Chief Executive Officer and the Chief Operating Officer for 1,000,000 shares of common stock under the Company’s 2011 Equity Incentive Plan. The terms of each option provide that, over a five year period, one third of the option shares will vest as of each of the third, fourth, and fifth anniversary dates of the grant of the option; provided that all unvested option shares will vest immediately in the event the closing price of the Company’s stock, as reported by the New York Stock Exchange, in any 20 out of 30 consecutive trading days closes at a price equal to or greater than 120% of the closing price on the date of grant (the “market-based condition”). The option exercise price is equal to the closing price of the Company’s common stock on the date of grant, which was $28.45 and the expiration date of each option is May 18, 2025. In accordance with ASC 718, the market-based awards were assigned a fair value of $5.62 per share on the date of grant using a Monte Carlo simulation model, which resulted in $11.2 million in future expense being recorded on a straight-line basis through the end of the 2016 second quarter. For the 2016 first quarter, $3.0 million of total stock-based compensation expense was recognized, $2.5 million of which was related to the market-based option grants discussed above. |
Note 16 - Commitments and Conti
Note 16 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 16. Commitments and Contingencies Surety Bonds and Letter s of Credit. our unsecured revolving credit facility (see Note 18 for further discussion of the revolving credit facility) . We expect that the obligations secured by these performance bonds and letters of credit generally will be performed in the ordinary course of business and in accordance with the applicable contractual terms. To the extent that the obligations are performed, the related performance bonds and letters of credit should be released and we should not have any continuing obligations. However, in the event any such performance bonds or letters of credit are called, our indemnity obligations could require us to reimburse the issuer of the performance bond or letter of credit. We have made no material guarantees with respect to third-party obligations. Mortgage Loan Loss Reserves. The following table summarizes the mortgage loan loss reserve activity for the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 (Dollars in thousands) Balance at beginning of period $ 201 $ 810 Expense provisions - 725 Cash payments - - Adjustments (41 ) (310 ) Balance at end of period $ 160 $ 1,225 Legal Reserves. Lot Option Contracts |
Note 17 - Derivative Financial
Note 17 - Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 17. Derivative Financial Instruments The derivative instruments we utilize in the normal course of business are interest rate lock commitments and forward sales of mortgage-backed securities, both of which typically are short-term in nature. Forward sales of mortgage-backed securities are utilized to hedge changes in fair value of our interest rate lock commitments as well as mortgage loans held-for-sale not under commitments to sell. For forward sales of securities, as well as interest rate lock commitments that are still outstanding at the end of a reporting period, we record the changes in fair value of the derivatives in revenues in the financial services section of our consolidated statements of operations and comprehensive income with an offset to other assets or accounts payable and accrued liabilities in the financial services section of our consolidated balance sheets, depending on the nature of the change. At March 31, 2016, we had interest rate lock commitments with an aggregate principal balance of $122.8 million. Additionally, we had $20.0 million of mortgage loans held-for-sale at March 31, 2016 that had not yet been committed to a mortgage purchaser. In order to hedge the changes in fair value of our interest rate lock commitments and mortgage loans held-for-sale that had not yet been committed to a mortgage purchaser, we had forward sales of securities totaling $80.5 million at March 31, 2016. For the three months ended March 31, 2016 and 2015, we recorded net gains on our derivatives of $0.6 million and $0.6 million, respectively. |
Note 18 - Lines of Credit
Note 18 - Lines of Credit | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 18. Lines of Credit Revolving Credit Facility. This agreement has an aggregate commitment of $550 million (the “Commitment”) and was amended on December 18, 2015 to extend the maturity to December 18, 2020. Each lender may issue letters of credit in an amount up to 50% of its commitment. The facility permits an increase in the maximum Commitment amount to $1.0 billion upon our request, subject to receipt of additional commitments from existing or additional lenders and the consent of the designated agent and the co-administrative agent. As defined in the Revolving Credit Facility agreement, interest rates on outstanding borrowings are equal to the highest of (1) 0.0% or (2) a specified eurocurrency rate, federal funds effective rate or prime rate, plus a margin that is determined based on our credit ratings and leverage ratio. At any time at which our leverage ratio, as of the last day of the most recent calendar quarter, exceeds 55%, the aggregate principal amount of all consolidated senior debt borrowings outstanding may not exceed the borrowing base. There is no borrowing base requirement if our leverage ratio, as of the last day of the most recent calendar quarter, is 55% or less. The Revolving Credit Facility is fully and unconditionally guaranteed, jointly and severally, by most of our homebuilding segment subsidiaries. The facility contains various representations, warranties and covenants that we believe are customary for agreements of this type. The financial covenants include a consolidated tangible net worth test and a leverage test, along with a consolidated tangible net worth covenant, all as defined in the facility agreement. A failure to satisfy the foregoing tests does not constitute an event of default, but can trigger a “term-out” of the facility. A breach of the consolidated tangible net worth covenant (but not the consolidated tangible net worth test) or a violation of anti-corruption or sanctions laws would result in an event of default. The Revolving Credit Facility is subject to acceleration upon certain specified events of default, including breach of the consolidated tangible net worth covenant, a violation of anti-corruption or sanctions laws, failure to make timely payments, breaches of certain representations or covenants, failure to pay other material indebtedness, or another person becoming beneficial owner of 50% or more of our outstanding common stock. We believe we were in compliance with the representations, warranties and covenants included in the Revolving Credit Facility as of March 31, 2016. We incur costs associated with unused commitment fees pursuant to the terms of the Revolving Credit Facility. At March 31, 2016 and December 31, 2015, there were $23.0 million and $22.5 million, respectively, in letters of credit outstanding, which reduced the amounts available to be borrowed under the Revolving Credit Facility. At both March 31, 2016 and December 31, 2015, we had $15.0 million in outstanding borrowings under the Revolving Credit Facility. As of March 31, 2016, availability under the Revolving Credit Facility was approximately $512.0 million. Mortgage Repurchase Facility. |
Note 19 - Supplemental Guaranto
Note 19 - Supplemental Guarantor Information | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Supplemental Guarantor Information [Text Block] | 19. 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. Supplemental Condensed Combining Balance Sheet March 31, 2016 Non- Guarantor Guarantor Eliminating Consolidated MDC Subsidiaries Subsidiaries Entries MDC (Dollars in thousands) ASSETS Homebuilding: Cash and cash equivalents $ 95,785 $ 3,246 $ - $ - $ 99,031 Marketable securities 77,154 - - - 77,154 Restricted cash - 3,349 - - 3,349 Trade and other receivables 5,810 34,603 - (2,317 ) 38,096 Inventories: Housing completed or under construction - 862,515 - - 862,515 Land and land under development - 948,767 - - 948,767 Total inventories - 1,811,282 - - 1,811,282 Intercompany receivables 1,652,426 2,805 5,819 (1,661,050 ) - Investment in subsidiaries 202,145 - - (202,145 ) - Property and equipment, net 26,882 2,492 - - 29,374 Deferred tax asset, net 94,322 - - 1,558 95,880 Metropolitan district bond securities (related party) 27,277 - - - 27,277 Prepaid and other assets 5,277 57,655 - - 62,932 Total homebuilding assets 2,187,078 1,915,432 5,819 (1,863,954 ) 2,244,375 Financial Services: Cash and cash equivalents - - 39,504 - 39,504 Marketable securities - - 12,268 - 12,268 Intercompany receivables - - 38,999 (38,999 ) - Mortgage loans held-for-sale, net - - 82,193 - 82,193 Other assets - - 9,024 (1,558 ) 7,466 Total financial services assets - - 181,988 (40,557 ) 141,431 Total Assets $ 2,187,078 $ 1,915,432 $ 187,807 $ (1,904,511 ) $ 2,385,806 LIABILITIES AND EQUITY Homebuilding: Accounts payable $ - $ 46,669 $ - $ - $ 46,669 Accrued liabilities 25,363 84,903 142 383 110,791 Advances and notes payable to parent and subsidiaries 47,623 1,622,233 26,270 (1,696,126 ) - Revolving credit facility 15,000 - - - 15,000 Senior notes, net 840,798 - - - 840,798 Total homebuilding liabilities 928,784 1,753,805 26,412 (1,695,743 ) 1,013,258 Financial Services: Accounts payable and other liabilities - - 56,733 (2,700 ) 54,033 Advances and notes payable to parent and subsidiaries - - 3,923 (3,923 ) - Mortgage repurchase facility - - 60,221 - 60,221 Total financial services liabilities - - 120,877 (6,623 ) 114,254 Total Liabilities 928,784 1,753,805 147,289 (1,702,366 ) 1,127,512 Equity: Total Stockholders' Equity 1,258,294 161,627 40,518 (202,145 ) 1,258,294 Total Liabilities and Stockholders' Equity $ 2,187,078 $ 1,915,432 $ 187,807 $ (1,904,511 ) $ 2,385,806 Supplemental Co ndensed 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 asset, net 97,083 - - 2,024 99,107 Metropolitan district bond securities (related party) 25,911 - - - 25,911 Prepaid and other assets 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 - - 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 Supplementa l Condensed Combining Statement of Operations Three Months Ended March 31, 2016 Non- Guarantor Guarantor Eliminating Consolidated MDC Subsidiaries Subsidiaries Entries MDC (Dollars in thousands) Homebuilding: Revenues $ - $ 396,744 $ - $ - $ 396,744 Home and land cost of sales - (331,389 ) (300 ) - (331,689 ) Inventory impairments - - - - - Total cost of sales - (331,389 ) (300 ) - (331,689 ) Gross margin - 65,355 (300 ) - 65,055 Selling, general, and administrative expenses (12,102 ) (44,016 ) - (159 ) (56,277 ) Equity income of subsidiaries 17,370 - - (17,370 ) - Interest and other income 1,386 729 1 (266 ) 1,850 Other expense (916 ) (625 ) - - (1,541 ) Other-than-temporary impairment of marketable securities (431 ) - - - (431 ) Homebuilding pretax income (loss) 5,307 21,443 (299 ) (17,795 ) 8,656 Financial Services: Financial services pretax income - - 5,192 425 5,617 Income before income taxes 5,307 21,443 4,893 (17,370 ) 14,273 (Provision) benefit for income taxes 4,256 (7,076 ) (1,890 ) - (4,710 ) Net income $ 9,563 $ 14,367 $ 3,003 $ (17,370 ) $ 9,563 Other comprehensive income related to available for sale securities, net of tax 1,948 - (1 ) 1 1,948 Comprehensive income $ 11,511 $ 14,367 $ 3,002 $ (17,369 ) $ 11,511 Three Months Ended March 31, 2015 Non- Guarantor Guarantor Eliminating Consolidated MDC Subsidiaries Subsidiaries Entries MDC (Dollars in thousands) Homebuilding: Revenues $ - $ 377,919 $ - $ - $ 377,919 Home and land cost of sales - (319,767 ) - - (319,767 ) Inventory impairments - (350 ) - - (350 ) Total cost of sales - (320,117 ) - - (320,117 ) Gross margin - 57,802 - - 57,802 Selling, general, and administrative expenses (8,922 ) (41,457 ) - (153 ) (50,532 ) Equity income of subsidiaries 12,992 - - (12,992 ) - Interest and other income 1,574 281 5 5 1,865 Interest expense 86 - - (86 ) - Other expense (13 ) (1,132 ) - - (1,145 ) Other-than-temporary impairment of marketable securities - - - - - Homebuilding pretax income (loss) 5,717 15,494 5 (13,226 ) 7,990 Financial Services: Financial services pretax income - - 5,102 234 5,336 Income before income taxes 5,717 15,494 5,107 (12,992 ) 13,326 (Provision) benefit for income taxes 2,703 (5,704 ) (1,905 ) - (4,906 ) Net income $ 8,420 $ 9,790 $ 3,202 $ (12,992 ) $ 8,420 Other comprehensive income related to available for sale securities, net of tax 1,308 - 259 (259 ) 1,308 Comprehensive income $ 9,728 $ 9,790 $ 3,461 $ (13,251 ) $ 9,728 Supplementa l Condensed Combining Statement of Cash Flows Three Months Ended March 31, 2016 Non- Guarantor Guarantor Eliminating Consolidated MDC Subsidiaries Subsidiaries Entries MDC (Dollars in thousands) Net cash provided by (used in) operating activities $ 12,225 $ (62,160 ) $ 34,950 $ - $ (14,985 ) Net cash provided by (used in) investing activities (45,433 ) (528 ) (976 ) 60,111 13,174 Financing activities: Payments from (advances to) subsidiaries - 62,837 (2,726 ) (60,111 ) - Mortgage repurchase facility - - (28,390 ) - (28,390 ) Dividend payments (12,252 ) - - - (12,252 ) Net cash provided by (used in) financing activities (12,252 ) 62,837 (31,116 ) (60,111 ) (40,642 ) Net increase in cash and cash equivalents (45,460 ) 149 2,858 - (42,453 ) Cash and cash equivalents: Beginning of period 141,245 3,097 36,646 - 180,988 End of period $ 95,785 $ 3,246 $ 39,504 $ - $ 138,535 Three Months Ended March 31, 2015 Non- Guarantor Guarantor Eliminating Consolidated MDC Subsidiaries Subsidiaries Entries MDC (Dollars in thousands) Net cash provided by (used in) operating activities $ 17,605 $ (25,582 ) $ 23,403 $ - $ 15,426 Net cash provided by (used in) investing activities (27,027 ) (258 ) (3,026 ) 23,973 (6,338 ) Financing activities: Payments from (advances to) subsidiaries - 26,159 (2,186 ) (23,973 ) - Mortgage repurchase facility - - (20,785 ) - (20,785 ) Dividend payments (12,213 ) - - - (12,213 ) Net cash provided by (used in) financing activities (12,213 ) 26,159 (22,971 ) (23,973 ) (32,998 ) Net increase in cash and cash equivalents (21,635 ) 319 (2,594 ) - (23,910 ) Cash and cash equivalents: Beginning of period 119,951 2,691 31,183 - 153,825 End of period $ 98,316 $ 3,010 $ 28,589 $ - $ 129,915 |
Note 3 - Segment Reporting (Tab
Note 3 - Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended March 31, 2016 2015 (Dollars in thousands) Homebuilding West $ 191,375 $ 176,817 Mountain 137,824 124,021 East 67,545 77,081 Total homebuilding revenues $ 396,744 $ 377,919 Financial Services Mortgage operations $ 6,870 $ 6,649 Other 4,147 3,942 Total financial services revenues $ 11,017 $ 10,591 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended March 31, 2016 2015 (Dollars in thousands) Homebuilding West $ 9,698 $ 8,503 Mountain 10,084 7,420 East 1,367 (421 ) Corporate (12,493 ) (7,512 ) Total homebuilding pretax income $ 8,656 $ 7,990 Financial Services Mortgage operations $ 3,323 $ 2,792 Other 2,294 2,544 Total financial services pretax income $ 5,617 $ 5,336 Total pretax income $ 14,273 $ 13,326 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | March 31, December 31, 2016 2015 (Dollars in thousands) Homebuilding assets West $ 1,041,898 $ 991,393 Mountain 539,308 536,831 East 331,421 324,457 Corporate 331,748 393,712 Total homebuilding assets $ 2,244,375 $ 2,246,393 Financial services assets Mortgage operations $ 92,941 $ 123,176 Other 48,490 46,330 Total financial services assets $ 141,431 $ 169,506 Total assets $ 2,385,806 $ 2,415,899 |
Note 4 - Earnings Per Share (Ta
Note 4 - Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 2016 2015 (Dollars in thousands, except per share amounts) Numerator Net income $ 9,563 $ 8,420 Less: distributed earnings allocated to participating securities (40 ) (25 ) Less: undistributed earnings allocated to participating securities - - Net income attributable to common stockholders (numerator for basic earnings per share) 9,523 8,395 Add back: undistributed earnings allocated to participating securities - - Less: undistributed earnings reallocated to participating securities - - Numerator for diluted earnings per share under two class method $ 9,523 $ 8,395 Denominator Weighted-average common shares outstanding 48,827,971 48,714,637 Add: dilutive effect of stock options 5,473 176,877 Denominator for diluted earnings per share under two class method 48,833,444 48,891,514 Basic Earnings Per Common Share $ 0.20 $ 0.17 Diluted Earnings Per Common Share $ 0.20 $ 0.17 |
Note 5 - Accumulated Other Co27
Note 5 - Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Three Months Ended March 31, 2016 2015 (Dollars in thousands) Unrealized gains on available-for-sale marketable securities 1 Beginning balance $ 3,657 $ 2,775 Other comprehensive income (loss) before reclassifications 524 360 Amounts reclassified from AOCI 2 835 7 Ending balance $ 5,016 $ 3,142 Unrealized gains on available-for-sale metropolitan district bond securities 1 Beginning balance $ 12,058 $ 7,680 Other comprehensive income before reclassifications 589 941 Amounts reclassified from AOCI - - Ending balance $ 12,647 $ 8,621 Total ending AOCI $ 17,663 $ 11,763 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Three Months Ended March 31, Affected Line Item in the Statements of Operations 2016 2015 (Dollars in thousands) Homebuilding other expense $ (915 ) $ (12 ) Other-than-temporary impairment of marketable securities (431 ) - Financial services interest and other income - 1 Income before income taxes (1,346 ) (11 ) Provision for income taxes 511 4 Net income $ (835 ) $ (7 ) |
Note 6 - Fair Value Measureme28
Note 6 - Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Financial Instrument Hierarchy March 31, 2016 December 31, 2015 (Dollars in thousands) Marketable equity securities (available-for-sale) Level 1 $ 89,422 $ 103,694 Mortgage loans held-for-sale, net Level 2 $ 82,193 $ 115,670 Metropolitan district bond securities (related party) (available-for-sale) Level 3 $ 27,277 $ 25,911 |
Available-for-sale Securities [Table Text Block] | March 31, 2016 Original Cost Basis OTTI Net Cost Basis Fair Value (Dollars in thousands) Homebuilding equity securities $ 70,666 $ (2,324 ) $ 68,342 $ 77,154 Financial services equity securities 12,988 - 12,988 12,268 Total marketable equity securities $ 83,654 $ (2,324 ) $ 81,330 $ 89,422 December 31, 2015 Original Cost Basis OTTI Net Cost Basis Fair Value (Dollars in thousands) Homebuilding equity securities $ 89,738 $ (3,969 ) $ 85,769 $ 92,387 Financial services equity securities 12,026 - 12,026 11,307 Total marketable equity securities $ 101,764 $ (3,969 ) $ 97,795 $ 103,694 |
Schedule of Unrealized Loss on Investments [Table Text Block] | March 31, 2016 December 31, 2015 Number of Securities in an Unrealized Loss Position Aggregate Unrealized Loss Position Aggregate Fair Value of Securities in an Unrealized Loss Position Number of Securities in an Unrealized Loss Position Aggregate Unrealized Loss Position Aggregate Fair Value of Securities in an Unrealized Loss Position (Dollars in thousands) Marketable equity securities 5 $ (925 ) $ 7,102 4 $ (882 ) $ 6,116 |
Realized Gain (Loss) on Investments [Table Text Block] | Three Months Ended March 31, 2016 2015 (Dollars in thousands) Gross realized gains on sales of available-for-sale securities Equity securities $ 91 $ 237 Debt securities - 166 Total $ 91 $ 403 Gross realized losses on sales of available-for-sale securities Equity securities $ (1,006 ) $ (325 ) Debt securities - (89 ) Total $ (1,006 ) $ (414 ) Net realized loss on sales of available-for-sale securities $ (915 ) $ (11 ) |
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | Quantitative Data Sensitivity Analysis Unobservable Input Range Weighted Average Movement in Movement in Number of homes closed per year 0 to 113 91 Increase Decrease Average sales price $418,000 to $1,200,000 $486,000 Increase Decrease Discount rates 5% to 12% 7.4% Decrease Increase |
Schedule of Principal Amounts and Fair Values of Debt Instruments [Table Text Block] | Three Months Ended March 31, 2016 2015 (Dollars in thousands) Balance at beginning of period $ 25,911 $ 18,203 Increase in fair value (recorded in other comprehensive income) 950 1,418 Change due to accretion of principal 416 357 Cash receipts - - Balance at end of period $ 27,277 $ 19,978 |
Fair Value of Senior Notes [Table Text Block] | March 31, 2016 December 31, 2015 Carrying Fair Value Carrying Fair Value (Dollars in thousands) 5⅝% Senior Notes due February 2020, net $ 246,247 $ 252,592 $ 246,032 $ 257,813 5½% Senior Notes due January 2024, net 248,254 239,833 248,209 252,188 6% Senior Notes due January 2043, net 346,297 268,753 346,283 276,938 Total $ 840,798 $ 761,178 $ 840,524 $ 786,939 |
Note 7 - Inventories (Tables)
Note 7 - Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Inventory [Table Text Block] | March 31, December 31, 2016 2015 (Dollars in thousands) Housing Completed or Under Construction: West $ 440,914 $ 365,867 Mountain 277,542 253,578 East 144,059 127,591 Subtotal 862,515 747,036 Land and Land Under Development: West 549,559 580,682 Mountain 236,702 259,484 East 162,506 176,760 Subtotal 948,767 1,016,926 Total Inventories $ 1,811,282 $ 1,763,962 |
Schedule of Inventory Impairments [Table Text Block] | Three Months Ended March 31, 2016 2015 (Dollars in thousands) West $ - $ - Mountain - - East - 350 Total Inventory Impairments $ - $ 350 |
Quantitative Data for Fair Value of the Impaired Inventory [Table Text Block] | Impairment Data Quantitative Data Three Months Ended Total Inventory Fair Value of Number of Discount Rate (Dollars in thousands) March 31, 2016 14 $ - $ - - N/A March 31, 2015 22 $ 350 $ 3,701 1 8.7% |
Note 8 - Capitalization of In30
Note 8 - Capitalization of Interest (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Capitalization of Interest [Table Text Block] | Three Months Ended March 31, 2016 2015 (Dollars in thousands) Homebuilding interest incurred $ 13,218 $ 13,251 Less: Interest capitalized (13,218 ) (13,251 ) Homebuilding interest expensed $ - $ - Interest capitalized, beginning of period $ 77,541 $ 79,231 Plus: Interest capitalized during period 13,218 13,251 Less: Previously capitalized interest included in home and land cost of sales (10,976 ) (12,491 ) Interest capitalized, end of period $ 79,783 $ 79,991 |
Note 9 - Homebuilding Prepaid31
Note 9 - Homebuilding Prepaid Expenses and Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Other Assets [Table Text Block] | March 31, December 31, 2016 2015 (Dollars in thousands) Land option deposits $ 9,254 $ 11,997 Deferred marketing costs 32,803 31,152 Prepaid expenses 5,978 6,500 Goodwill 6,008 6,008 Deferred debt issuance costs, net 5,287 5,570 Other 3,602 4,167 Total $ 62,932 $ 65,394 |
Note 10 - Homebuilding Accrue32
Note 10 - Homebuilding Accrued Liabilities and Financial Services Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | March 31, December 31, 2016 2015 (Dollars in thousands) Customer and escrow deposits $ 26,570 $ 20,717 Warranty accrual 16,852 15,328 Accrued compensation and related expenses 13,926 25,492 Accrued interest 11,031 23,234 Land development and home construction accruals 11,164 11,465 Other accrued liabilities 31,248 26,650 Total accrued liabilities $ 110,791 $ 122,886 |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | March 31, December 31, 2016 2015 (Dollars in thousands) Insurance reserves $ 46,379 $ 45,811 Accounts payable and other accrued liabilities 7,654 6,303 Total accounts payable and accrued liabilities $ 54,033 $ 52,114 |
Note 11 - Warranty Accrual (Tab
Note 11 - Warranty Accrual (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended March 31, 2016 2015 (Dollars in thousands) Balance at beginning of period $ 15,328 $ 18,346 Expense provisions 1,452 1,115 Cash payments (2,915 ) (1,700 ) Adjustments 2,987 - Balance at end of period $ 16,852 $ 17,761 |
Note 12 - Insurance Reserves (T
Note 12 - Insurance Reserves (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | Three Months Ended March 31, 2016 2015 (Dollars in thousands) Balance at beginning of period $ 45,811 $ 50,470 Expense provisions 1,388 1,273 Cash payments, net of recoveries (820 ) (1,728 ) Balance at end of period $ 46,379 $ 50,015 |
Note 14 - Senior Notes (Tables)
Note 14 - Senior Notes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | March 31, December 31, 2016 2015 (Dollars in thousands) 5⅝% Senior Notes due February 2020, net $ 246,247 $ 246,032 5½% Senior Notes due January 2024, net 248,254 248,209 6% Senior Notes due January 2043, net 346,297 346,283 Total $ 840,798 $ 840,524 |
Note 15 - Stock Based Compens36
Note 15 - Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Activity [Table Text Block] | Three Months Ended March 31, 2016 2015 (Dollars in thousands) Stock option grant expense $ 2,650 $ 376 Restricted stock awards expense 337 499 Total stock based compensation $ 2,987 $ 875 |
Note 16 - Commitments and Con37
Note 16 - Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Mortgage Loan Loss Reserve Activity [TableText Block] | Three Months Ended March 31, 2016 2015 (Dollars in thousands) Balance at beginning of period $ 201 $ 810 Expense provisions - 725 Cash payments - - Adjustments (41 ) (310 ) Balance at end of period $ 160 $ 1,225 |
Note 19 - Supplemental Guaran38
Note 19 - Supplemental Guarantor Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | March 31, 2016 Non- Guarantor Guarantor Eliminating Consolidated MDC Subsidiaries Subsidiaries Entries MDC (Dollars in thousands) ASSETS Homebuilding: Cash and cash equivalents $ 95,785 $ 3,246 $ - $ - $ 99,031 Marketable securities 77,154 - - - 77,154 Restricted cash - 3,349 - - 3,349 Trade and other receivables 5,810 34,603 - (2,317 ) 38,096 Inventories: Housing completed or under construction - 862,515 - - 862,515 Land and land under development - 948,767 - - 948,767 Total inventories - 1,811,282 - - 1,811,282 Intercompany receivables 1,652,426 2,805 5,819 (1,661,050 ) - Investment in subsidiaries 202,145 - - (202,145 ) - Property and equipment, net 26,882 2,492 - - 29,374 Deferred tax asset, net 94,322 - - 1,558 95,880 Metropolitan district bond securities (related party) 27,277 - - - 27,277 Prepaid and other assets 5,277 57,655 - - 62,932 Total homebuilding assets 2,187,078 1,915,432 5,819 (1,863,954 ) 2,244,375 Financial Services: Cash and cash equivalents - - 39,504 - 39,504 Marketable securities - - 12,268 - 12,268 Intercompany receivables - - 38,999 (38,999 ) - Mortgage loans held-for-sale, net - - 82,193 - 82,193 Other assets - - 9,024 (1,558 ) 7,466 Total financial services assets - - 181,988 (40,557 ) 141,431 Total Assets $ 2,187,078 $ 1,915,432 $ 187,807 $ (1,904,511 ) $ 2,385,806 LIABILITIES AND EQUITY Homebuilding: Accounts payable $ - $ 46,669 $ - $ - $ 46,669 Accrued liabilities 25,363 84,903 142 383 110,791 Advances and notes payable to parent and subsidiaries 47,623 1,622,233 26,270 (1,696,126 ) - Revolving credit facility 15,000 - - - 15,000 Senior notes, net 840,798 - - - 840,798 Total homebuilding liabilities 928,784 1,753,805 26,412 (1,695,743 ) 1,013,258 Financial Services: Accounts payable and other liabilities - - 56,733 (2,700 ) 54,033 Advances and notes payable to parent and subsidiaries - - 3,923 (3,923 ) - Mortgage repurchase facility - - 60,221 - 60,221 Total financial services liabilities - - 120,877 (6,623 ) 114,254 Total Liabilities 928,784 1,753,805 147,289 (1,702,366 ) 1,127,512 Equity: Total Stockholders' Equity 1,258,294 161,627 40,518 (202,145 ) 1,258,294 Total Liabilities and Stockholders' Equity $ 2,187,078 $ 1,915,432 $ 187,807 $ (1,904,511 ) $ 2,385,806 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 asset, net 97,083 - - 2,024 99,107 Metropolitan district bond securities (related party) 25,911 - - - 25,911 Prepaid and other assets 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 - - 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 |
Condensed Income Statement [Table Text Block] | Three Months Ended March 31, 2016 Non- Guarantor Guarantor Eliminating Consolidated MDC Subsidiaries Subsidiaries Entries MDC (Dollars in thousands) Homebuilding: Revenues $ - $ 396,744 $ - $ - $ 396,744 Home and land cost of sales - (331,389 ) (300 ) - (331,689 ) Inventory impairments - - - - - Total cost of sales - (331,389 ) (300 ) - (331,689 ) Gross margin - 65,355 (300 ) - 65,055 Selling, general, and administrative expenses (12,102 ) (44,016 ) - (159 ) (56,277 ) Equity income of subsidiaries 17,370 - - (17,370 ) - Interest and other income 1,386 729 1 (266 ) 1,850 Other expense (916 ) (625 ) - - (1,541 ) Other-than-temporary impairment of marketable securities (431 ) - - - (431 ) Homebuilding pretax income (loss) 5,307 21,443 (299 ) (17,795 ) 8,656 Financial Services: Financial services pretax income - - 5,192 425 5,617 Income before income taxes 5,307 21,443 4,893 (17,370 ) 14,273 (Provision) benefit for income taxes 4,256 (7,076 ) (1,890 ) - (4,710 ) Net income $ 9,563 $ 14,367 $ 3,003 $ (17,370 ) $ 9,563 Other comprehensive income related to available for sale securities, net of tax 1,948 - (1 ) 1 1,948 Comprehensive income $ 11,511 $ 14,367 $ 3,002 $ (17,369 ) $ 11,511 Three Months Ended March 31, 2015 Non- Guarantor Guarantor Eliminating Consolidated MDC Subsidiaries Subsidiaries Entries MDC (Dollars in thousands) Homebuilding: Revenues $ - $ 377,919 $ - $ - $ 377,919 Home and land cost of sales - (319,767 ) - - (319,767 ) Inventory impairments - (350 ) - - (350 ) Total cost of sales - (320,117 ) - - (320,117 ) Gross margin - 57,802 - - 57,802 Selling, general, and administrative expenses (8,922 ) (41,457 ) - (153 ) (50,532 ) Equity income of subsidiaries 12,992 - - (12,992 ) - Interest and other income 1,574 281 5 5 1,865 Interest expense 86 - - (86 ) - Other expense (13 ) (1,132 ) - - (1,145 ) Other-than-temporary impairment of marketable securities - - - - - Homebuilding pretax income (loss) 5,717 15,494 5 (13,226 ) 7,990 Financial Services: Financial services pretax income - - 5,102 234 5,336 Income before income taxes 5,717 15,494 5,107 (12,992 ) 13,326 (Provision) benefit for income taxes 2,703 (5,704 ) (1,905 ) - (4,906 ) Net income $ 8,420 $ 9,790 $ 3,202 $ (12,992 ) $ 8,420 Other comprehensive income related to available for sale securities, net of tax 1,308 - 259 (259 ) 1,308 Comprehensive income $ 9,728 $ 9,790 $ 3,461 $ (13,251 ) $ 9,728 |
Condensed Cash Flow Statement [Table Text Block] | Three Months Ended March 31, 2016 Non- Guarantor Guarantor Eliminating Consolidated MDC Subsidiaries Subsidiaries Entries MDC (Dollars in thousands) Net cash provided by (used in) operating activities $ 12,225 $ (62,160 ) $ 34,950 $ - $ (14,985 ) Net cash provided by (used in) investing activities (45,433 ) (528 ) (976 ) 60,111 13,174 Financing activities: Payments from (advances to) subsidiaries - 62,837 (2,726 ) (60,111 ) - Mortgage repurchase facility - - (28,390 ) - (28,390 ) Dividend payments (12,252 ) - - - (12,252 ) Net cash provided by (used in) financing activities (12,252 ) 62,837 (31,116 ) (60,111 ) (40,642 ) Net increase in cash and cash equivalents (45,460 ) 149 2,858 - (42,453 ) Cash and cash equivalents: Beginning of period 141,245 3,097 36,646 - 180,988 End of period $ 95,785 $ 3,246 $ 39,504 $ - $ 138,535 Three Months Ended March 31, 2015 Non- Guarantor Guarantor Eliminating Consolidated MDC Subsidiaries Subsidiaries Entries MDC (Dollars in thousands) Net cash provided by (used in) operating activities $ 17,605 $ (25,582 ) $ 23,403 $ - $ 15,426 Net cash provided by (used in) investing activities (27,027 ) (258 ) (3,026 ) 23,973 (6,338 ) Financing activities: Payments from (advances to) subsidiaries - 26,159 (2,186 ) (23,973 ) - Mortgage repurchase facility - - (20,785 ) - (20,785 ) Dividend payments (12,213 ) - - - (12,213 ) Net cash provided by (used in) financing activities (12,213 ) 26,159 (22,971 ) (23,973 ) (32,998 ) Net increase in cash and cash equivalents (21,635 ) 319 (2,594 ) - (23,910 ) Cash and cash equivalents: Beginning of period 119,951 2,691 31,183 - 153,825 End of period $ 98,316 $ 3,010 $ 28,589 $ - $ 129,915 |
Note 3 - Segment Reporting (Det
Note 3 - Segment Reporting (Details Textual) | 3 Months Ended |
Mar. 31, 2016 | |
Other Segments [Member] | |
Number of Reportable Segments | 1 |
Note 3 - Reconciliation of Reve
Note 3 - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Homebuilding [Member] | West [Member] | ||
West | $ 191,375 | $ 176,817 |
Homebuilding [Member] | Mountain [Member] | ||
West | 137,824 | 124,021 |
Homebuilding [Member] | East [Member] | ||
West | 67,545 | 77,081 |
Homebuilding [Member] | ||
West | 396,744 | 377,919 |
Financial Services [Member] | Mortgage Operations [Member] | ||
Financial Services | ||
Mortgage operations | 6,870 | 6,649 |
Financial Services [Member] | Other Financial Services [Member] | ||
Financial Services | ||
Mortgage operations | 4,147 | 3,942 |
Financial Services [Member] | ||
Financial Services | ||
Mortgage operations | $ 11,017 | $ 10,591 |
Note 3 - Reconciliation of Pret
Note 3 - Reconciliation of Pretax Operating Income from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Homebuilding [Member] | West [Member] | ||
Income before income taxes | $ 9,698 | $ 8,503 |
Homebuilding [Member] | Mountain [Member] | ||
Income before income taxes | 10,084 | 7,420 |
Homebuilding [Member] | East [Member] | ||
Income before income taxes | 1,367 | (421) |
Homebuilding [Member] | Corporate Subsegment [Member] | ||
Income before income taxes | (12,493) | (7,512) |
Homebuilding [Member] | ||
Income before income taxes | 8,656 | 7,990 |
Financial Services [Member] | Mortgage Operations [Member] | ||
Income before income taxes | 3,323 | 2,792 |
Financial Services [Member] | Other Financial Services [Member] | ||
Income before income taxes | 2,294 | 2,544 |
Financial Services [Member] | ||
Income before income taxes | 5,617 | 5,336 |
Income before income taxes | $ 14,273 | $ 13,326 |
Note 3 - Total Assets (Details)
Note 3 - Total Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Reportable Geographical Components [Member] | Homebuilding [Member] | West [Member] | ||
West | $ 1,041,898 | $ 991,393 |
Reportable Geographical Components [Member] | Homebuilding [Member] | Mountain [Member] | ||
West | 539,308 | 536,831 |
Reportable Geographical Components [Member] | Homebuilding [Member] | East [Member] | ||
West | 331,421 | 324,457 |
Reportable Geographical Components [Member] | Homebuilding [Member] | Corporate Subsegment [Member] | ||
West | 331,748 | 393,712 |
Reportable Geographical Components [Member] | Homebuilding [Member] | ||
West | 2,244,375 | 2,246,393 |
Reportable Geographical Components [Member] | Financial Services [Member] | Mortgage Operations [Member] | ||
West | 92,941 | 123,176 |
Reportable Geographical Components [Member] | Financial Services [Member] | Other Financial Services [Member] | ||
West | 48,490 | 46,330 |
Reportable Geographical Components [Member] | Financial Services [Member] | ||
West | 141,431 | 169,506 |
Homebuilding [Member] | ||
West | 2,244,375 | 2,246,393 |
Financial Services [Member] | ||
West | 141,431 | 169,506 |
West | $ 2,385,806 | $ 2,415,899 |
Note 4 - Earnings Per Share (De
Note 4 - Earnings Per Share (Details Textual) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6.6 | 3.7 |
Note 4 - Earnings Per Share - B
Note 4 - Earnings Per Share - Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Stock Option [Member] | ||
Add: dilutive effect of stock options (in shares) | 5,473 | 176,877 |
Net income | $ 9,563 | $ 8,420 |
Less: distributed earnings allocated to participating securities | $ (40) | $ (25) |
Less: undistributed earnings allocated to participating securities | ||
Net income attributable to common stockholders (numerator for basic earnings per share) | $ 9,523 | $ 8,395 |
Add back: undistributed earnings allocated to participating securities | ||
Less: undistributed earnings reallocated to participating securities | ||
Numerator for diluted earnings per share under two class method | $ 9,523 | $ 8,395 |
Weighted-average common shares outstanding (in shares) | 48,827,971 | 48,714,637 |
Denominator for diluted earnings per share under two class method (in shares) | 48,833,444 | 48,891,514 |
Basic Earnings Per Common Share (in dollars per share) | $ 0.20 | $ 0.17 |
Diluted Earnings Per Common Share (in dollars per share) | $ 0.20 | $ 0.17 |
Note 5 - Changes in Accumulated
Note 5 - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Metropolitan District Bond Securities [Member] | |||
Beginning balance | [1] | $ 12,058 | $ 7,680 |
Other comprehensive income (loss) before reclassifications | [1] | $ 589 | $ 941 |
Amounts reclassified from AOCI 2 | [1],[2] | ||
Ending balance | [1] | $ 12,647 | $ 8,621 |
Ending balance | [1] | 12,058 | 7,680 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Beginning balance | [1] | 3,657 | 2,775 |
Other comprehensive income (loss) before reclassifications | [1] | 524 | 360 |
Amounts reclassified from AOCI 2 | [1],[2] | 835 | 7 |
Ending balance | [1] | 5,016 | 3,142 |
Ending balance | [1] | 3,657 | 2,775 |
Beginning balance | 15,715 | ||
Ending balance | [1] | 17,663 | 11,763 |
Ending balance | [1] | $ 17,663 | $ 11,763 |
[1] | All amounts net-of-tax. | ||
[2] | See separate table below for details about these reclassifications |
Note 5 - Reclassifications out
Note 5 - Reclassifications out of AOCI (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Homebuilding [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Homebuilding other expense | $ (915,000) | $ (12,000) |
Other-than-temporary impairment of marketable securities | $ (431,000) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial Services [Member] | ||
Financial services interest and other income | $ 1,000 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Income before income taxes | $ (1,346,000) | (11,000) |
Provision for income taxes | 511,000 | 4,000 |
Net income | (835,000) | (7,000) |
Homebuilding [Member] | ||
Homebuilding other expense | (1,541,000) | $ (1,145,000) |
Other-than-temporary impairment of marketable securities | (431,000) | |
Financial services interest and other income | 1,850,000 | $ 1,865,000 |
Income before income taxes | 8,656,000 | 7,990,000 |
Financial Services [Member] | ||
Income before income taxes | 5,617,000 | 5,336,000 |
Other-than-temporary impairment of marketable securities | (431,000) | 0 |
Income before income taxes | 14,273,000 | 13,326,000 |
Provision for income taxes | (4,710,000) | (4,906,000) |
Net income | $ 9,563,000 | $ 8,420,000 |
Note 6 - Fair Value Measureme47
Note 6 - Fair Value Measurements (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Fair Value, Inputs, Level 2 [Member] | Under Commitment to Sell [Member] | |||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage | $ 62,200,000 | $ 92,600,000 | |
Fair Value, Inputs, Level 2 [Member] | Not Under Commitment to Sell [Member] | |||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage | 20,000,000 | 23,100,000 | |
Fair Value, Inputs, Level 2 [Member] | |||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage | 82,193,000 | 115,670,000 | |
Financial Services [Member] | |||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage | 82,193,000 | 115,670,000 | |
Gain (Loss) on Sale of Mortgage Loans | $ 5,600,000 | $ 4,400,000 | |
Minimum [Member] | |||
Short Term Borrowings Maturity Period | 30 days | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 431,000 | $ 0 | |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax | 8,100,000 | 5,900,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 925,000 | $ 882,000 |
Note 6 - Fair Value Methods Use
Note 6 - Fair Value Methods Used for Measuring Fair Values of Financial Instruments on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 1 [Member] | ||||
Marketable equity securities (available-for-sale) | $ 89,422 | $ 103,694 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage | 82,193 | 115,670 | ||
Fair Value, Inputs, Level 3 [Member] | Metropolitan District Bond Securities [Member] | ||||
Metropolitan district bond securities (related party) (available-for-sale) | 27,277 | 25,911 | ||
Metropolitan District Bond Securities [Member] | ||||
Metropolitan district bond securities (related party) (available-for-sale) | $ 27,277 | $ 25,911 | $ 19,978 | $ 18,203 |
Note 6 - Amortized Cost and Est
Note 6 - Amortized Cost and Estimated Fair Value of Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Homebuilding [Member] | Equity Securities [Member] | ||
Amortized Cost | $ 70,666 | $ 89,738 |
OTTI | (2,324) | (3,969) |
Net Amortized Cost | 68,342 | 85,769 |
Fair Value | 77,154 | 92,387 |
Financial Services [Member] | Equity Securities [Member] | ||
Amortized Cost | $ 12,988 | 12,026 |
OTTI | ||
Net Amortized Cost | $ 12,988 | 12,026 |
Fair Value | 12,268 | 11,307 |
Amortized Cost | 83,654 | 101,764 |
OTTI | (2,324) | (3,969) |
Net Amortized Cost | 81,330 | 97,795 |
Fair Value | $ 89,422 | $ 103,694 |
Note 6 - Aggregate Fair Value o
Note 6 - Aggregate Fair Value of Securities in Unrealized Loss Positions (Details) $ in Thousands | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Marketable equity securities | 5 | 4 |
Marketable equity securities | $ (925) | $ (882) |
Marketable equity securities | $ 7,102 | $ 6,116 |
Note 6 - Gross Realized Gains a
Note 6 - Gross Realized Gains and Gross Realized Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity Securities [Member] | ||
Gross realized gains on sales of available-for-sale securities | ||
Equity securities | $ 91 | $ 237 |
Equity securities | $ (1,006) | (325) |
Debt Securities [Member] | ||
Gross realized gains on sales of available-for-sale securities | ||
Equity securities | 166 | |
Equity securities | (89) | |
Equity securities | $ 91 | 403 |
Equity securities | (1,006) | (414) |
Net realized loss on sales of available-for-sale securities | $ (915) | $ (11) |
Note 6 - Quantitative Data Rega
Note 6 - Quantitative Data Regarding Unobservable Inputs and Sensitivity Analysis (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Minimum [Member] | ||
Number of homes closed per year | 0 | |
Average sales price | 418,000 | |
Discount rates | 5.00% | 8.70% |
Maximum [Member] | ||
Number of homes closed per year | 113 | |
Average sales price | 1,200,000 | |
Discount rates | 12.00% | |
Weighted Average [Member] | ||
Number of homes closed per year | 91 | |
Average sales price | 486,000 | |
Discount rates | 7.40% | |
Number of homes closed per year | Increase | |
Number of homes closed per year | Decrease | |
Discount rates | Decrease | |
Discount rates | Increase |
Note 6 - Summary of Activity fo
Note 6 - Summary of Activity for Metro Bonds (Details) - Metropolitan District Bond Securities [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Balance at beginning of period | $ 25,911 | $ 18,203 |
Increase in fair value (recorded in other comprehensive income) | 950 | 1,418 |
Change due to accretion of principal | $ 416 | $ 357 |
Cash receipts | ||
Balance at end of period | $ 27,277 | $ 19,978 |
Note 6 - Estimated Fair Value o
Note 6 - Estimated Fair Value of Senior Notes (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Senior Notes 5.625 Due 2020 [Member] | ||
Carrying Amount | $ 246,247 | $ 246,032 |
Fair Value | 252,592 | 257,813 |
Senior Notes 5.5 Due 2024 [Member] | ||
Carrying Amount | 248,254 | 248,209 |
Fair Value | 239,833 | 252,188 |
Senior Notes 6.00 Due January 2043 [Member] | ||
Carrying Amount | 346,297 | 346,283 |
Fair Value | 268,753 | 276,938 |
Carrying Amount | 840,798 | 840,524 |
Fair Value | $ 761,178 | $ 786,939 |
Note 6 - Estimated Fair Value55
Note 6 - Estimated Fair Value of Senior Notes (Details) (Parentheticals) | Mar. 31, 2016 | Dec. 31, 2015 |
Senior Notes 5.625 Due 2020 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% |
Senior Notes 5.5 Due 2024 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% |
Senior Notes 6.00 Due January 2043 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% |
Note 7 - Summary of Inventory (
Note 7 - Summary of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
West [Member] | ||
Housing Completed or Under Construction: | ||
West | $ 440,914 | $ 365,867 |
Land and Land Under Development: | ||
West | 549,559 | 580,682 |
Mountain [Member] | ||
Housing Completed or Under Construction: | ||
West | 277,542 | 253,578 |
Land and Land Under Development: | ||
West | 236,702 | 259,484 |
East [Member] | ||
Housing Completed or Under Construction: | ||
West | 144,059 | 127,591 |
Land and Land Under Development: | ||
West | 162,506 | 176,760 |
West | 862,515 | 747,036 |
West | 948,767 | 1,016,926 |
Total Inventories | $ 1,811,282 | $ 1,763,962 |
Note 7 - Inventory Impairments
Note 7 - Inventory Impairments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
East [Member] | ||
Impairment Data; Inventory Impairments | $ 350 | |
Impairment Data; Inventory Impairments | $ 350 |
Note 7 - Fair Value of Impaired
Note 7 - Fair Value of Impaired Inventory (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Minimum [Member] | ||
Discount rates | 5.00% | 8.70% |
Impairment Data; Total Subdivisions Tested | 14 | 22 |
Impairment Data; Inventory Impairments | $ 350 | |
Impairment Data; Fair Value of Inventory After Impairments | $ 3,701 | |
Impairment Data; Number of Subdivisions Impaired | 1 |
Note 8 - Interest Activity (Det
Note 8 - Interest Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Homebuilding interest incurred | $ 13,218 | $ 13,251 |
Less: Interest capitalized | $ (13,218) | $ (13,251) |
Homebuilding interest expensed | ||
Interest capitalized, beginning of period | $ 77,541 | $ 79,231 |
Plus: Interest capitalized during period | 13,218 | 13,251 |
Less: Previously capitalized interest included in home and land cost of sales | (10,976) | (12,491) |
Interest capitalized, end of period | $ 79,783 | $ 79,991 |
Note 9 - Summary of Homebuildin
Note 9 - Summary of Homebuilding Prepaid Expenses and Other Assets (Details) - Homebuilding [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Land option deposits | $ 9,254 | $ 11,997 |
Deferred marketing costs | 32,803 | 31,152 |
Prepaid expenses | 5,978 | 6,500 |
Goodwill | 6,008 | 6,008 |
Deferred debt issuance costs, net | 5,287 | 5,570 |
Other | 3,602 | 4,167 |
Total | $ 62,932 | $ 65,394 |
Note 10 - Homebuilding Accrue61
Note 10 - Homebuilding Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Homebuilding [Member] | Land Development and Home Construction Accruals [Member] | ||||
Land development and home construction accruals | $ 11,164 | $ 11,465 | ||
Homebuilding [Member] | ||||
Customer and escrow deposits | 26,570 | 20,717 | ||
Warranty accrual | 16,852 | 15,328 | ||
Accrued compensation and related expenses | 13,926 | 25,492 | ||
Accrued interest | 11,031 | 23,234 | ||
Land development and home construction accruals | 110,791 | 122,886 | ||
Other accrued liabilities | 31,248 | 26,650 | ||
Warranty accrual | $ 16,852 | $ 15,328 | $ 17,761 | $ 18,346 |
Note 10 - Financial Services Ac
Note 10 - Financial Services Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Financial Services [Member] | ||||
Insurance reserves | $ 46,379 | $ 45,811 | ||
Accounts payable and other accrued liabilities | 7,654 | 6,303 | ||
Total accounts payable and accrued liabilities | 54,033 | 52,114 | ||
Insurance reserves | $ 46,379 | $ 45,811 | $ 50,015 | $ 50,470 |
Note 11 - Warranty Accrual (Det
Note 11 - Warranty Accrual (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Standard and Extended Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | $ 2,987,000 | $ 0 |
Note 11 - Warranty Accrual and
Note 11 - Warranty Accrual and Payment Activity (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Balance at beginning of period | $ 15,328,000 | $ 18,346,000 |
Expense provisions | 1,452,000 | 1,115,000 |
Cash payments | (2,915,000) | (1,700,000) |
Standard and Extended Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | 2,987,000 | 0 |
Balance at end of period | $ 16,852,000 | $ 17,761,000 |
Note 12 - Insurance Reserves (D
Note 12 - Insurance Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Balance at beginning of period | $ 45,811 | $ 50,470 |
Expense provisions | 1,388 | 1,273 |
Cash payments, net of recoveries | (820) | (1,728) |
Balance at end of period | $ 46,379 | $ 50,015 |
Note 13 - Income Taxes (Details
Note 13 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent | 33.00% | 36.80% | |
Income Tax Expense (Benefit) | $ 4,710 | $ 4,906 | |
Deferred Tax Assets, Net | $ 95,900 | $ 99,100 |
Note 14 - Carrying Amount of Se
Note 14 - Carrying Amount of Senior Notes (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
5.625% Senior Notes Due February 2020 [Member] | ||
Carrying Amount | $ 246,247 | $ 246,032 |
5.5 % Senior Notes Due 2024 [Member] | ||
Carrying Amount | 248,254 | 248,209 |
6.000 % Senior Notes Due January 2043 [Member] | ||
Carrying Amount | 346,297 | 346,283 |
Carrying Amount | $ 840,798 | $ 840,524 |
Note 14 - Carrying Amount of 68
Note 14 - Carrying Amount of Senior Notes (Details) (Parentheticals) | Mar. 31, 2016 | Dec. 31, 2015 |
5.625% Senior Notes Due February 2020 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.05625% | 0.05625% |
5.5 % Senior Notes Due 2024 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.055% | 0.055% |
6.000 % Senior Notes Due January 2043 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.06% | 0.06% |
Note 15 - Stock Based Compens69
Note 15 - Stock Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | May. 18, 2015 | Mar. 31, 2016 | Mar. 31, 2015 |
Nonqualified Stock Option [Member] | Equity Incentive Plan 2011 [Member] | CEO and COO [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Sharebased Compensation Arrangement by Sharebased Payment Award Expected to Vest Immediately Threshold Trading Days | 20 days | ||
Sharebased Compensation Arrangement by Sharebased Payment Award Expected to Vest Immediately threshold Consecutive Trading Days | 30 days | ||
Sharebased Compensation Arrangement by Sharebased Payment Award Expected to Vest Immediately Threshold Percentage of Stock Price Trigger | 120.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 5.62 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 11,200 | ||
Allocated Share-based Compensation Expense | 2,500 | ||
Employee Stock Option [Member] | |||
Allocated Share-based Compensation Expense | 2,650 | $ 376 | |
Share Price | $ 28.45 | ||
Allocated Share-based Compensation Expense | $ 2,987 | $ 875 |
Note 15 - Share-based Award Exp
Note 15 - Share-based Award Expense Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Stock Option [Member] | ||
Allocated Share-based Compensation Expense | $ 2,650 | $ 376 |
Restricted Stock [Member] | ||
Allocated Share-based Compensation Expense | 337 | 499 |
Allocated Share-based Compensation Expense | $ 2,987 | $ 875 |
Note 16 - Commitments and Con71
Note 16 - Commitments and Contingencies (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Homeamerican [Member] | |
Letters of Credit Outstanding, Amount | $ 35.3 |
Option Contracts [Member] | |
Letters of Credit Outstanding, Amount | 2.7 |
Earnest Money Deposits | $ 8.8 |
Right to Acquire Lots Under Options Contract | 1,934 |
Surety Bonds, Issued and Outstanding | $ 164.7 |
Letters of Credit Outstanding, Amount | 58.4 |
Estimated Cost Related to Bonds | 51.9 |
Estimated Cost Related to Letters of Credit | $ 43.3 |
Note 16 - Mortgage Loan Loss Re
Note 16 - Mortgage Loan Loss Reserve Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Balance at beginning of period | $ 201 | $ 810 |
Expense provisions | 725 | |
Adjustments | $ (41) | (310) |
Balance at end of period | $ 160 | $ 1,225 |
Note 17 - Derivative Financia73
Note 17 - Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Commitment to Originate Mortgage Loans [Member] | ||
Notional Amount of Forward Rate Commitments and Futures Contracts to Hedge against Mortgage Servicing Rights | $ 122.8 | |
No Commitment to Originate Mortgage Loans [Member] | ||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage | 20 | |
Forward Sales of Mortgage Backed Securities [Member] | ||
Notional Amount of Forward Rate Commitments and Futures Contracts to Hedge against Mortgage Servicing Rights | 80.5 | |
Derivative, Gain (Loss) on Derivative, Net | $ 0.6 | $ 0.6 |
Note 18 - Lines of Credit (Deta
Note 18 - Lines of Credit (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||||||
Mar. 31, 2016 | Mar. 29, 2016 | Mar. 28, 2016 | Dec. 31, 2015 | Dec. 23, 2015 | Dec. 22, 2015 | Dec. 18, 2015 | |
Revolving Credit Facility [Member] | Maximum [Member] | Upon Request [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 | ||||||
Revolving Credit Facility [Member] | Minimum [Member] | Subject to Acceleration [Member] | |||||||
Line of Credit Facility, Covenant Terms, Ownership Percentage | 50.00% | ||||||
Revolving Credit Facility [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 550 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | ||||||
Long-term Line of Credit | $ 15 | $ 15 | |||||
Standby Letters of Credit [Member] | |||||||
Line of Credit Facility Maximum Borrowing Capacity Percentage | 50.00% | ||||||
Letters of Credit Outstanding, Amount | $ 23 | 22.5 | |||||
Mortgage Repurchase Facility [Member] | Warehouse Agreement Borrowings [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 80 | $ 50 | $ 90 | $ 50 | |||
Long-term Line of Credit | $ 60.2 | $ 88.6 | |||||
Maximum [Member] | Borrowing Base is Required [Member] | |||||||
Line of Credit Facility, Leverage Ratio | 55.00% | ||||||
Minimum [Member] | Borrowing Base is Required [Member] | |||||||
Line of Credit Facility, Leverage Ratio | 55.00% | ||||||
Letters of Credit Outstanding, Amount | $ 58.4 | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 512 |
Note 19 - Supplemental Guaran75
Note 19 - Supplemental Guarantor Information (Details Textual) | 3 Months Ended |
Mar. 31, 2016 | |
Guarantor Subsidiaries [Member] | |
Equity Method Investment, Ownership Percentage | 100.00% |
Maximum Percentage of Consolidated Net Worth of Guarantor for Suspension of Guarantee | 5.00% |
Maximum Aggregate Percentage of Consolidated Net Worth of All Guarantors for Suspension of Guarantee | 10.00% |
Maximum Aggregate Percentage of Consolidated Net Worth of All Guarantors for Suspension of Guarantee to Permit Cure of Default | 15.00% |
Note 19 - Supplemental Condense
Note 19 - Supplemental Condensed Combining Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
MDC Holdings [Member] | Homebuilding [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | $ 95,785 | $ 141,245 | ||
Marketable securities | $ 77,154 | $ 92,387 | ||
Restricted cash | ||||
Trade and other receivables | $ 5,810 | $ 5,304 | ||
West | ||||
West | ||||
Total Inventories | ||||
Intercompany receivables | $ 1,652,426 | $ 1,509,551 | ||
Investment in subsidiaries | 202,145 | 267,191 | ||
Property and equipment, net | 26,882 | 26,073 | ||
Deferred Tax Assets, Net | 94,322 | 97,083 | ||
Metropolitan district bond securities (related party) (available-for-sale) | 27,277 | 25,911 | ||
Total | 5,277 | 5,973 | ||
West | $ 2,187,078 | $ 2,170,718 | ||
Accounts payable | ||||
Land development and home construction accruals | $ 25,363 | $ 11,527 | ||
Advances and notes payable to parent and subsidiaries | 47,623 | 47,375 | ||
Long-term Line of Credit | 15,000 | 15,000 | ||
Senior notes, net | 840,798 | 840,524 | ||
Total homebuilding liabilities | $ 928,784 | $ 914,426 | ||
MDC Holdings [Member] | Financial Services [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | ||||
Marketable securities | ||||
Intercompany receivables | ||||
West | ||||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage | ||||
Other assets | ||||
Advances and notes payable to parent and subsidiaries | ||||
Total homebuilding liabilities | ||||
Total accounts payable and accrued liabilities | ||||
Mortgage repurchase facility | ||||
MDC Holdings [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | $ 95,785 | $ 141,245 | $ 98,316 | $ 119,951 |
West | 2,187,078 | 2,170,718 | ||
Total homebuilding liabilities | 928,784 | 914,426 | ||
Total Stockholders' Equity | 1,258,294 | 1,256,292 | ||
Total Liabilities and Stockholders' Equity | 2,187,078 | 2,170,718 | ||
Guarantor Subsidiaries [Member] | Homebuilding [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | $ 3,246 | $ 3,097 | ||
Marketable securities | ||||
Restricted cash | $ 3,349 | $ 3,750 | ||
Trade and other receivables | 34,603 | 20,297 | ||
West | 862,515 | 747,036 | ||
West | 948,767 | 1,016,926 | ||
Total Inventories | 1,811,282 | 1,763,962 | ||
Intercompany receivables | $ 2,805 | $ 2,850 | ||
Investment in subsidiaries | ||||
Property and equipment, net | $ 2,492 | $ 2,153 | ||
Deferred Tax Assets, Net | ||||
Metropolitan district bond securities (related party) (available-for-sale) | ||||
Total | $ 57,655 | $ 59,421 | ||
West | 1,915,432 | 1,855,530 | ||
Accounts payable | 46,669 | 40,472 | ||
Land development and home construction accruals | 84,903 | 108,445 | ||
Advances and notes payable to parent and subsidiaries | $ 1,622,233 | $ 1,480,589 | ||
Long-term Line of Credit | ||||
Senior notes, net | ||||
Total homebuilding liabilities | $ 1,753,805 | $ 1,629,506 | ||
Guarantor Subsidiaries [Member] | Financial Services [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | ||||
Marketable securities | ||||
Intercompany receivables | ||||
West | ||||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage | ||||
Other assets | ||||
Advances and notes payable to parent and subsidiaries | ||||
Total homebuilding liabilities | ||||
Total accounts payable and accrued liabilities | ||||
Mortgage repurchase facility | ||||
Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | $ 3,246 | $ 3,097 | 3,010 | 2,691 |
West | 1,915,432 | 1,855,530 | ||
Total homebuilding liabilities | 1,753,805 | 1,629,506 | ||
Total Stockholders' Equity | 161,627 | 226,024 | ||
Total Liabilities and Stockholders' Equity | $ 1,915,432 | $ 1,855,530 | ||
Non-Guarantor Subsidiaries [Member] | Homebuilding [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | ||||
Marketable securities | ||||
Restricted cash | ||||
Trade and other receivables | ||||
West | ||||
West | ||||
Total Inventories | ||||
Intercompany receivables | $ 5,819 | $ 5,291 | ||
Investment in subsidiaries | ||||
Property and equipment, net | ||||
Deferred Tax Assets, Net | ||||
Metropolitan district bond securities (related party) (available-for-sale) | ||||
Total | ||||
West | $ 5,819 | $ 5,291 | ||
Accounts payable | ||||
Land development and home construction accruals | $ 142 | $ (33) | ||
Advances and notes payable to parent and subsidiaries | $ 26,270 | $ 25,536 | ||
Long-term Line of Credit | ||||
Senior notes, net | ||||
Total homebuilding liabilities | $ 26,412 | $ 25,503 | ||
Non-Guarantor Subsidiaries [Member] | Financial Services [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 39,504 | 36,646 | ||
Marketable securities | 12,268 | 11,307 | ||
Intercompany receivables | 38,999 | 39,234 | ||
West | 181,988 | 210,764 | ||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage | 82,193 | 115,670 | ||
Other assets | 9,024 | 7,907 | ||
Advances and notes payable to parent and subsidiaries | 3,923 | 3,426 | ||
Total homebuilding liabilities | 120,877 | 149,385 | ||
Total accounts payable and accrued liabilities | 56,733 | 57,348 | ||
Mortgage repurchase facility | 60,221 | 88,611 | ||
Non-Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 39,504 | 36,646 | $ 28,589 | $ 31,183 |
West | 187,807 | 216,055 | ||
Total homebuilding liabilities | 147,289 | 174,888 | ||
Total Stockholders' Equity | 40,518 | 41,167 | ||
Total Liabilities and Stockholders' Equity | $ 187,807 | $ 216,055 | ||
Consolidation, Eliminations [Member] | Homebuilding [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | ||||
Marketable securities | ||||
Restricted cash | ||||
Trade and other receivables | $ (2,317) | $ (2,287) | ||
West | ||||
West | ||||
Total Inventories | ||||
Intercompany receivables | $ (1,661,050) | $ (1,517,692) | ||
Investment in subsidiaries | $ (202,145) | $ (267,191) | ||
Property and equipment, net | ||||
Deferred Tax Assets, Net | $ 1,558 | $ 2,024 | ||
Metropolitan district bond securities (related party) (available-for-sale) | ||||
Total | ||||
West | $ (1,863,954) | $ (1,785,146) | ||
Accounts payable | ||||
Land development and home construction accruals | $ 383 | $ 2,947 | ||
Advances and notes payable to parent and subsidiaries | $ (1,696,126) | $ (1,553,500) | ||
Long-term Line of Credit | ||||
Senior notes, net | ||||
Total homebuilding liabilities | $ (1,695,743) | $ (1,550,553) | ||
Consolidation, Eliminations [Member] | Financial Services [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | ||||
Marketable securities | ||||
Intercompany receivables | $ (38,999) | $ (39,234) | ||
West | $ (40,557) | $ (41,258) | ||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage | ||||
Other assets | $ (1,558) | $ (2,024) | ||
Advances and notes payable to parent and subsidiaries | (3,923) | (3,426) | ||
Total homebuilding liabilities | (6,623) | (8,660) | ||
Total accounts payable and accrued liabilities | $ (2,700) | $ (5,234) | ||
Mortgage repurchase facility | ||||
Consolidation, Eliminations [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | ||||
West | $ (1,904,511) | $ (1,826,404) | ||
Total homebuilding liabilities | (1,702,366) | (1,559,213) | ||
Total Stockholders' Equity | (202,145) | (267,191) | ||
Total Liabilities and Stockholders' Equity | (1,904,511) | (1,826,404) | ||
Homebuilding [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 99,031 | 144,342 | ||
Marketable securities | 77,154 | 92,387 | ||
Restricted cash | 3,349 | 3,750 | ||
Trade and other receivables | 38,096 | 23,314 | ||
West | 862,515 | 747,036 | ||
West | 948,767 | 1,016,926 | ||
Total Inventories | $ 1,811,282 | $ 1,763,962 | ||
Intercompany receivables | ||||
Investment in subsidiaries | ||||
Property and equipment, net | $ 29,374 | $ 28,226 | ||
Deferred Tax Assets, Net | 95,880 | 99,107 | ||
Metropolitan district bond securities (related party) (available-for-sale) | 27,277 | 25,911 | ||
Total | 62,932 | 65,394 | ||
West | 2,244,375 | 2,246,393 | ||
Accounts payable | 46,669 | 40,472 | ||
Land development and home construction accruals | $ 110,791 | $ 122,886 | ||
Advances and notes payable to parent and subsidiaries | ||||
Long-term Line of Credit | $ 15,000 | $ 15,000 | ||
Senior notes, net | 840,798 | 840,524 | ||
Total homebuilding liabilities | 1,013,258 | 1,018,882 | ||
Financial Services [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 39,504 | 36,646 | ||
Marketable securities | $ 12,268 | $ 11,307 | ||
Intercompany receivables | ||||
West | $ 141,431 | $ 169,506 | ||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage | 82,193 | 115,670 | ||
Other assets | $ 7,466 | $ 5,883 | ||
Advances and notes payable to parent and subsidiaries | ||||
Total homebuilding liabilities | $ 114,254 | $ 140,725 | ||
Total accounts payable and accrued liabilities | 54,033 | 52,114 | ||
Mortgage repurchase facility | 60,221 | 88,611 | ||
Cash and cash equivalents | 138,535 | 180,988 | $ 129,915 | $ 153,825 |
West | 862,515 | 747,036 | ||
West | 948,767 | 1,016,926 | ||
Total Inventories | 1,811,282 | 1,763,962 | ||
Deferred Tax Assets, Net | 95,900 | 99,100 | ||
West | 2,385,806 | 2,415,899 | ||
Total homebuilding liabilities | 1,127,512 | 1,159,607 | ||
Total Stockholders' Equity | 1,258,294 | 1,256,292 | ||
Total Liabilities and Stockholders' Equity | $ 2,385,806 | $ 2,415,899 |
Note 19 - Supplemental Conden77
Note 19 - Supplemental Condensed Combining Statements of Operations and Comprehensive Income (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
MDC Holdings [Member] | Homebuilding [Member] | ||
Revenues | ||
Home and land cost of sales | ||
Inventory impairments | ||
Total cost of sales | ||
Gross margin | ||
Selling, general, and administrative expenses | $ (12,102,000) | $ (8,922,000) |
Equity income of subsidiaries | 17,370,000 | 12,992,000 |
Financial services interest and other income | 1,386,000 | 1,574,000 |
Homebuilding other expense | (916,000) | $ (13,000) |
Other-than-temporary impairment of marketable securities | (431,000) | |
Homebuilding pretax income (loss) | $ 5,307,000 | $ 5,717,000 |
Homebuilding interest expensed | $ 86,000 | |
MDC Holdings [Member] | Financial Services [Member] | ||
Homebuilding pretax income (loss) | ||
MDC Holdings [Member] | ||
Homebuilding pretax income (loss) | $ 5,307,000 | $ 5,717,000 |
Provision for income taxes | 4,256,000 | 2,703,000 |
Net income | 9,563,000 | 8,420,000 |
Other comprehensive income related to available for sale securities, net of tax | 1,948,000 | 1,308,000 |
Comprehensive income | 11,511,000 | 9,728,000 |
Comprehensive income | (11,511,000) | (9,728,000) |
Guarantor Subsidiaries [Member] | Homebuilding [Member] | ||
Revenues | 396,744,000 | 377,919,000 |
Home and land cost of sales | $ (331,389,000) | (319,767,000) |
Inventory impairments | (350,000) | |
Total cost of sales | $ (331,389,000) | (320,117,000) |
Gross margin | 65,355,000 | 57,802,000 |
Selling, general, and administrative expenses | $ (44,016,000) | $ (41,457,000) |
Equity income of subsidiaries | ||
Financial services interest and other income | $ 729,000 | $ 281,000 |
Homebuilding other expense | $ (625,000) | $ (1,132,000) |
Other-than-temporary impairment of marketable securities | ||
Homebuilding pretax income (loss) | $ 21,443,000 | $ 15,494,000 |
Homebuilding interest expensed | ||
Guarantor Subsidiaries [Member] | Financial Services [Member] | ||
Homebuilding pretax income (loss) | ||
Guarantor Subsidiaries [Member] | ||
Homebuilding pretax income (loss) | $ 21,443,000 | $ 15,494,000 |
Provision for income taxes | (7,076,000) | (5,704,000) |
Net income | $ 14,367,000 | $ 9,790,000 |
Other comprehensive income related to available for sale securities, net of tax | ||
Comprehensive income | $ 14,367,000 | $ 9,790,000 |
Comprehensive income | $ (14,367,000) | $ (9,790,000) |
Non-Guarantor Subsidiaries [Member] | Homebuilding [Member] | ||
Revenues | ||
Home and land cost of sales | $ (300,000) | |
Inventory impairments | ||
Total cost of sales | $ (300,000) | |
Gross margin | $ (300,000) | |
Selling, general, and administrative expenses | ||
Equity income of subsidiaries | ||
Financial services interest and other income | $ 1,000 | $ 5,000 |
Homebuilding other expense | ||
Other-than-temporary impairment of marketable securities | ||
Homebuilding pretax income (loss) | $ (299,000) | $ 5,000 |
Homebuilding interest expensed | ||
Non-Guarantor Subsidiaries [Member] | Financial Services [Member] | ||
Homebuilding pretax income (loss) | 5,192,000 | $ 5,102,000 |
Non-Guarantor Subsidiaries [Member] | ||
Homebuilding pretax income (loss) | 4,893,000 | 5,107,000 |
Provision for income taxes | (1,890,000) | (1,905,000) |
Net income | 3,003,000 | 3,202,000 |
Other comprehensive income related to available for sale securities, net of tax | (1,000) | 259,000 |
Comprehensive income | 3,002,000 | 3,461,000 |
Comprehensive income | $ (3,002,000) | $ (3,461,000) |
Consolidation, Eliminations [Member] | Homebuilding [Member] | ||
Revenues | ||
Home and land cost of sales | ||
Inventory impairments | ||
Total cost of sales | ||
Gross margin | ||
Selling, general, and administrative expenses | $ (159,000) | $ (153,000) |
Equity income of subsidiaries | (17,370,000) | (12,992,000) |
Financial services interest and other income | $ (266,000) | $ 5,000 |
Homebuilding other expense | ||
Other-than-temporary impairment of marketable securities | ||
Homebuilding pretax income (loss) | $ (17,795,000) | $ (13,226,000) |
Homebuilding interest expensed | (86,000) | |
Consolidation, Eliminations [Member] | Financial Services [Member] | ||
Homebuilding pretax income (loss) | 425,000 | 234,000 |
Consolidation, Eliminations [Member] | ||
Homebuilding pretax income (loss) | $ (17,370,000) | $ (12,992,000) |
Provision for income taxes | ||
Net income | $ (17,370,000) | $ (12,992,000) |
Other comprehensive income related to available for sale securities, net of tax | 1,000 | (259,000) |
Comprehensive income | (17,369,000) | (13,251,000) |
Comprehensive income | 17,369,000 | 13,251,000 |
Homebuilding [Member] | ||
Revenues | 396,744,000 | 377,919,000 |
Home and land cost of sales | $ (331,689,000) | (319,767,000) |
Inventory impairments | (350,000) | |
Total cost of sales | $ (331,689,000) | (320,117,000) |
Gross margin | 65,055,000 | 57,802,000 |
Selling, general, and administrative expenses | $ (56,277,000) | $ (50,532,000) |
Equity income of subsidiaries | ||
Financial services interest and other income | $ 1,850,000 | $ 1,865,000 |
Homebuilding other expense | (1,541,000) | $ (1,145,000) |
Other-than-temporary impairment of marketable securities | (431,000) | |
Homebuilding pretax income (loss) | 8,656,000 | $ 7,990,000 |
Homebuilding interest expensed | ||
Financial Services [Member] | ||
Homebuilding pretax income (loss) | $ 5,617,000 | $ 5,336,000 |
Inventory impairments | (350,000) | |
Other-than-temporary impairment of marketable securities | $ (431,000) | 0 |
Homebuilding pretax income (loss) | 14,273,000 | 13,326,000 |
Provision for income taxes | (4,710,000) | (4,906,000) |
Net income | 9,563,000 | 8,420,000 |
Other comprehensive income related to available for sale securities, net of tax | 1,948,000 | 1,308,000 |
Comprehensive income | $ 11,511,000 | $ 9,728,000 |
Homebuilding interest expensed | ||
Comprehensive income | $ (11,511,000) | $ (9,728,000) |
Note 19 - Supplemental Conden78
Note 19 - Supplemental Condensed Combining Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
MDC Holdings [Member] | ||
Net cash provided by (used in) operating activities | $ 12,225 | $ 17,605 |
Net cash provided by (used in) investing activities | $ (45,433) | $ (27,027) |
Payments from (advances to) subsidiaries | ||
Mortgage repurchase facility | ||
Dividend payments | $ (12,252) | $ (12,213) |
Net cash provided by (used in) financing activities | (12,252) | (12,213) |
Net increase in cash and cash equivalents | (45,460) | (21,635) |
Beginning of period | 141,245 | 119,951 |
End of period | 95,785 | 98,316 |
Guarantor Subsidiaries [Member] | ||
Net cash provided by (used in) operating activities | (62,160) | (25,582) |
Net cash provided by (used in) investing activities | (528) | (258) |
Payments from (advances to) subsidiaries | $ 62,837 | $ 26,159 |
Mortgage repurchase facility | ||
Dividend payments | ||
Net cash provided by (used in) financing activities | $ 62,837 | $ 26,159 |
Net increase in cash and cash equivalents | 149 | 319 |
Beginning of period | 3,097 | 2,691 |
End of period | 3,246 | 3,010 |
Non-Guarantor Subsidiaries [Member] | ||
Net cash provided by (used in) operating activities | 34,950 | 23,403 |
Net cash provided by (used in) investing activities | (976) | (3,026) |
Payments from (advances to) subsidiaries | (2,726) | (2,186) |
Mortgage repurchase facility | $ (28,390) | $ (20,785) |
Dividend payments | ||
Net cash provided by (used in) financing activities | $ (31,116) | $ (22,971) |
Net increase in cash and cash equivalents | 2,858 | (2,594) |
Beginning of period | 36,646 | 31,183 |
End of period | $ 39,504 | $ 28,589 |
Consolidation, Eliminations [Member] | ||
Net cash provided by (used in) operating activities | ||
Net cash provided by (used in) investing activities | $ 60,111 | $ 23,973 |
Payments from (advances to) subsidiaries | $ (60,111) | $ (23,973) |
Mortgage repurchase facility | ||
Dividend payments | ||
Net cash provided by (used in) financing activities | $ (60,111) | $ (23,973) |
Net increase in cash and cash equivalents | ||
Beginning of period | ||
End of period | ||
Net cash provided by (used in) operating activities | $ (14,985) | $ 15,426 |
Net cash provided by (used in) investing activities | $ 13,174 | $ (6,338) |
Payments from (advances to) subsidiaries | ||
Mortgage repurchase facility | $ (28,390) | $ (20,785) |
Dividend payments | (12,252) | (12,213) |
Net cash provided by (used in) financing activities | (40,642) | (32,998) |
Net increase in cash and cash equivalents | (42,453) | (23,910) |
Beginning of period | 180,988 | 153,825 |
End of period | $ 138,535 | $ 129,915 |