MDC(MDC) - 2019 Q4 - Annual Report

PART I ITEM 1. Business M.D.C. Holdings, Inc. operates in homebuilding (Richmond American Homes) and financial services, with the West segment leading 2019 home deliveries and revenues (a) General Development of Business MDC Holdings, Inc. focuses on homebuilding (Richmond American Homes) and financial services, including mortgage, insurance, and title services - MDC Holdings, Inc. has two primary operations: homebuilding and financial services[14] - Homebuilding operates under 'Richmond American Homes' across West (AZ, CA, NV, WA, OR), Mountain (CO, UT), and East (MD, VA, FL) segments[14] - Financial services include HomeAmerican Mortgage Corporation (mortgage origination), Allegiant Insurance Company (insurance for homebuilding subsidiaries/subcontractors), StarAmerican Insurance (re-insurer), American Home Insurance Agency (third-party insurance), and American Home Title and Escrow Company (title services)[15] (b) Available Information SEC filings and corporate governance documents are publicly available on the company's website - SEC filings (10-K, 10-Q, 8-K) are available free of charge on www.mdcholdings.com under 'SEC Filings'[16] - Corporate governance documents (Guidelines, Code of Conduct, Audit Committee Procedures, Charters) are also available on the website under 'Governance'[16] (c) Narrative Description of Business Homebuilding focuses on single-family detached homes, covering land acquisition, construction, sales, and customer service, with a growing backlog - Homebuilding operations focus on building and selling primarily single-family detached homes, with some attached townhomes, targeting first-time and first-time move-up homebuyers[17][22] - Key functions include land acquisition and development, home construction, sales and marketing, and customer service[19] - The company prefers to purchase finished lots using option contracts, but approximately half of the lots acquired require some level of development[22] - Backlog at December 31, 2019, totaled 3,801 homes with an estimated sales value of $1.75 billion, an increase from 2,936 homes and $1.43 billion in 2018[27] - HomeAmerican Mortgage Corporation is the principal originator of mortgage loans for the company's homebuyers, authorized for Fannie Mae, Freddie Mac, FHA, VA, and Ginnie Mae mortgages[32][33] Employee Count by Segment (December 31, 2019 vs. 2018) | Segment | December 31, 2019 | December 31, 2018 | | :----------------- | :---------------- | :---------------- | | Homebuilding | 1,264 | 1,184 | | Financial Services | 155 | 152 | | Corporate | 237 | 245 | | Total | 1,656 | 1,581 | 2019 Home Deliveries and Home Sale Revenues by State/Region | State/Region | Percentage of Home Deliveries | Percentage of Home Sale Revenues | | :----------- | :---------------------------- | :------------------------------- | | Arizona | 19% | 15% | | California | 15% | 20% | | Nevada | 15% | 14% | | Oregon | 1% | 1% | | Washington | 5% | 6% | | West | 55% | 56% | | Colorado | 26% | 30% | | Utah | 5% | 5% | | Mountain | 31% | 35% | | Maryland | 1% | 0% | | Virginia | 2% | 2% | | Florida | 11% | 7% | | East | 14% | 9% | | Total | 100% | 100% | ITEM 1A. Risk Factors The company faces significant risks from economic and real estate conditions, competition, supply chain issues, regulatory compliance, litigation, and key employee dependence - Homebuilding is cyclical and significantly affected by economic conditions such as employment levels, availability of financing, interest rates, consumer confidence, and cost of land, labor, and construction materials[48][55] - Increased competition in homebuilding and mortgage lending can negatively impact net new home orders, sales prices, and margins[58][59] - Supply shortages and price fluctuations in labor and building materials can increase costs and delay deliveries, which may not be recoverable through higher sales prices for existing contracts[61][62] - Rising mortgage interest rates, increased down payment requirements, or decreased loan limits could adversely affect home demand and sales[63][65][66] - The business is subject to numerous federal, state, and local laws and regulations concerning land development, construction, sales, mortgage lending, and environmental aspects, which could lead to additional liabilities or restrictions[75][78][80] - Product liability litigation and warranty claims are costly, and the amount of insurance coverage may be limited, potentially leading to additional expenses[85] ITEM 1B. Unresolved Staff Comments There are no unresolved staff comments to report - No unresolved staff comments[91] ITEM 2. Properties The company leases its corporate office in Denver, Colorado, and additional office spaces for homebuilding divisions, with current facilities deemed suitable - The corporate office is leased at 4350 South Monaco Street, Denver, Colorado, occupying 144,000 square feet[91] - Homebuilding divisions lease additional office space in many markets[91] ITEM 3. Legal Proceedings The company is involved in various ordinary course legal actions, with management believing outcomes will not materially affect financial condition or operations - The company is a defendant in various claims, complaints, and other legal actions arising in the ordinary course of business, including product liability and claims associated with home sales and financing[92] - Management believes the outcome of these ordinary course matters will not have a material adverse effect on the company's financial condition, results of operations, or cash flows[92] ITEM 4. Mine Safety Disclosures This item is not applicable to the company's operations - Not applicable[93] PART II ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities MDC's common stock trades on the NYSE under 'MDC', with 561 shareholders of record and $1.18 per share in cash dividends declared in 2019, alongside 8% stock dividends - MDC's common stock is traded on the New York Stock Exchange under the symbol MDC[3][95] - As of December 31, 2019, there were 561 shareholders of record and 62,574,961 shares of common stock outstanding[6][95] Cash Dividends Declared and Paid (2017-2019, in thousands) | Year | Dividend per Share | Total Dividends Paid (in thousands) | | :--- | :----------------- | :---------------------------------- | | 2019 | $1.18 | $73,020 | | 2018 | $1.11 | $67,717 | | 2017 | $0.85 | $51,779 | - The company announced 8% stock dividends distributed in February 2019 and December 2017[95] - The company is authorized to repurchase up to 4,000,000 shares of common stock, but no shares were repurchased under this program during 2019, 2018, or 2017. However, 28,334 shares were purchased in December 2019 at an average price of $38.16, representing shares withheld for taxes[100][104] ITEM 6. Selected Financial Data This section provides a five-year summary of key financial and operational data, highlighting consistent revenue and net income growth, increased home deliveries, and expanding backlog Selected Income Statement Data (2015-2019, in thousands) | Metric | 2019 | 2018 | 2017 | 2016 | 2015 | | :------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Homebuilding revenues | $3,205,248 | $2,981,811 | $2,503,242 | $2,262,853 | $1,860,226 | | Financial services revenues | $88,005 | $83,405 | $74,372 | $63,991 | $48,810 | | Total revenues | $3,293,253 | $3,065,216 | $2,577,614 | $2,326,844 | $1,909,036 | | Homebuilding pretax income | $244,762 | $217,494 | $185,939 | $115,378 | $70,441 | | Financial services pretax income | $60,227 | $46,360 | $43,793 | $36,403 | $30,983 | | Total income before income taxes | $304,989 | $263,854 | $229,732 | $151,781 | $101,424 | | Net income | $238,312 | $210,780 | $141,835 | $103,211 | $65,791 | | Basic earnings per share | $3.84 | $3.46 | $2.35 | $1.72 | $1.10 | | Diluted earnings per share | $3.72 | $3.39 | $2.30 | $1.71 | $1.09 | Selected Balance Sheet Data (2015-2019, in thousands) | Metric | 2019 | 2018 | 2017 | 2016 | 2015 | | :------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Cash and cash equivalents | $459,933 | $463,776 | $505,428 | $282,909 | $180,988 | | Total inventories | $2,366,575 | $2,132,994 | $1,829,736 | $1,758,814 | $1,763,962 | | Total assets | $3,338,356 | $3,001,077 | $2,780,292 | $2,528,589 | $2,415,899 | | Stockholders' equity | $1,782,485 | $1,576,000 | $1,407,287 | $1,320,070 | $1,256,292 | Selected Operational Data (2015-2019, in thousands, except units) | Metric | 2019 | 2018 | 2017 | 2016 | 2015 | | :-------------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Homes delivered (units) | 6,974 | 6,197 | 5,541 | 5,054 | 4,390 | | Average selling price (in thousands) | $460 | $481 | $451 | $447 | $421 | | Net new orders (units) | 7,839 | 5,974 | 5,816 | 5,606 | 5,203 | | Homes in backlog at period end (units) | 3,801 | 2,936 | 3,159 | 2,884 | 2,332 | | Estimated backlog sales value (in thousands) | $1,745,000 | $1,426,000 | $1,602,000 | $1,382,000 | $1,054,000 | | Active subdivisions at period-end | 185 | 166 | 151 | 164 | 167 | ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations MDC Holdings reported a 13% increase in net income to $238.3 million in 2019, driven by 7% higher home sale revenues and improved gross margin, with net new orders up 31% and a $1.75 billion backlog - Net income for 2019 increased 13% to $238.3 million ($3.72 diluted EPS) from $210.8 million ($3.39 diluted EPS) in 2018[111] - Home sale revenues increased by $223.4 million (7%) to $3.21 billion in 2019, due to a 13% increase in homes delivered, partially offset by a 4% decrease in average selling price[112] - Net new home orders increased 31% in units and 26% in dollar value, driven by a 17% increase in average active communities and a 13% increase in monthly sales absorption pace[113] - More affordable product offerings accounted for 60% of net new orders in 2019, up from 49% in 2018[113] - Backlog dollar value increased 22% year-over-year to $1.75 billion at the end of 2019[115] - Financial services pretax income increased 30% to $60.2 million in 2019, primarily due to an $11.8 million net gain on equity securities, contrasting with a $3.7 million net loss in the prior year[156] - Mortgage originations grew 15% in both loans and principal in 2019, with the capture rate remaining stable at 62% of all homes delivered[158] EXECUTIVE SUMMARY Net income increased 13% to $238.3 million in 2019, driven by 7% higher home sale revenues and 31% growth in net new orders, resulting in a $1.75 billion backlog and increased lot supply - Net income for 2019 increased 13% to $238.3 million ($3.72 diluted EPS) from $210.8 million ($3.39 diluted EPS) in 2018[111] - Home sale revenues increased by $223.4 million (7%) to $3.21 billion in 2019, due to a 13% increase in homes delivered, partially offset by a 4% decrease in average selling price[112] - Net new home orders increased 31% in units and 26% in dollar value, driven by a 17% increase in average active communities and a 13% increase in monthly sales absorption pace[113] - More affordable product offerings accounted for 60% of net new orders in 2019, up from 49% in 2018[113] - Backlog dollar value increased 22% year-over-year to $1.75 billion at the end of 2019[115] - Approved over 12,000 lots in 2019, with approximately 75% for affordable offerings, leading to a year-end supply of over 27,000 controlled lots (highest in over a decade)[116] - Total liquidity was $1.51 billion at year-end 2019, with a year-over-year decrease in debt-to-capital ratio[117] Homebuilding Homebuilding pretax income increased 13% in 2019, driven by 13% higher homes delivered and a 50 basis point gross margin improvement, despite a 4% decrease in average selling price Homebuilding Pretax Income by Segment (2018-2019, in thousands) | Segment | 2019 | 2018 | Change (2019 vs 2018) | % Change | | :-------- | :--------- | :--------- | :-------------------- | :------- | | West | $163,069 | $128,829 | $34,240 | 27% | | Mountain | $136,313 | $134,710 | $1,603 | 1% | | East | $9,857 | $12,611 | $(2,754) | (22)% | | Corporate | $(64,477) | $(58,656) | $(5,821) | (10)% | | Total | $244,762 | $217,494 | $27,268 | 13% | New Home Deliveries & Home Sale Revenues (2018-2019, in thousands, except units) | Metric | 2019 | 2018 | % Change (2019 vs 2018) | | :--------------------- | :-------- | :-------- | :---------------------- | | Homes Delivered | 6,974 | 6,197 | 13% | | Home Sale Revenues | $3,205,248 | $2,981,811 | 7% | | Average Selling Price | $459.6 | $481.2 | (4)% | - Gross margin from home sales increased 50 basis points year-over-year from 18.3% in 2018 to 18.8% in 2019[131] Inventory Impairments (2018-2019, in thousands) | Year | Total Impairments | Impact on Gross Margin | | :--- | :---------------- | :--------------------- | | 2019 | $935 | Not significant | | 2018 | $21,850 | (70) basis points | Net New Orders and Active Subdivisions (2018-2019, in thousands, except units) | Metric | 2019 | 2018 | % Change (2019 vs 2018) | | :----------------------------------- | :-------- | :-------- | :---------------------- | | Net New Orders (units) | 7,839 | 5,974 | 31% | | Net New Orders (dollar value) | $3,495,151 | $2,770,782 | 26% | | Average Selling Price of New Orders | $445.9 | $463.8 | (4)% | | Monthly Absorption Rate | 3.56 | 3.16 | 13% | | Active Subdivisions at period-end | 185 | 166 | 11% | | Average Active Subdivisions | 183 | 157 | 17% | - The cancellation rate decreased from 24% in 2018 to 21% in 2019, with the East segment experiencing the most significant decrease due to additional underwriting procedures[150] Backlog at December 31 (2018-2019, in thousands, except units) | Metric | Dec 31, 2019 | Dec 31, 2018 | % Change (2019 vs 2018) | | :----------------------------------- | :----------- | :----------- | :---------------------- | | Homes in Backlog (units) | 3,801 | 2,936 | 29% | | Total Value of Backlog | $1,745,347 | $1,425,967 | 22% | | Average Selling Price of Homes in Backlog | $459.2 | $485.7 | (5)% | Total Owned and Optioned Lots (December 31, 2018-2019) | Metric | Dec 31, 2019 | Dec 31, 2018 | % Change | | :----------------------------------- | :----------- | :----------- | :------- | | Lots Owned | 18,505 | 16,297 | | | Lots Optioned | 8,881 | 6,890 | | | Total Owned and Optioned Lots | 27,386 | 23,187 | 18% | Financial Services Financial services pretax income increased 30% to $60.2 million in 2019, primarily due to an $11.8 million net gain on equity securities, with mortgage originations growing 15% Financial Services Pretax Income by Segment (2018-2019, in thousands) | Segment | 2019 | 2018 | Change (2019 vs 2018) | % Change | | :----------------- | :--------- | :--------- | :-------------------- | :------- | | Mortgage operations | $29,312 | $31,920 | $(2,608) | (8)% | | Other | $30,915 | $14,440 | $16,475 | 114% | | Total | $60,227 | $46,360 | $13,867 | 30% | - The increase in financial services pretax income was primarily due to an $11.8 million net gain on equity securities in 2019, compared to a $3.7 million net loss in 2018[156] Mortgage Originations and Capture Rate (2018-2019, in thousands, except loans) | Metric | 2019 | 2018 | % Change (2019 vs 2018) | | :----------------------------------- | :---------- | :---------- | :---------------------- | | Total Originations (Loans) | 4,361 | 3,783 | 15% | | Total Originations (Principal) | $1,585,487 | $1,380,164 | 15% | | Capture rate (% of all homes delivered) | 62% | 61% | 1% | | Capture rate (% of all homes delivered, excludes cash sales) | 67% | 66% | 1% | - Mortgage loan origination product mix in 2019 included 39% government loans (FHA, VA, USDA) and 61% conventional loans[159] Income Taxes The effective income tax rate increased to 21.9% in 2019, influenced by share-based awards, uncertain tax positions, and energy tax credits Effective Income Tax Rates (2017-2019) | Year | Effective Tax Rate | | :--- | :----------------- | | 2019 | 21.9% | | 2018 | 20.1% | | 2017 | 38.3% | - The year-over-year change in the effective tax rate from 2018 to 2019 was impacted by a $2.8 million benefit from share-based awards in 2019 (vs. $0.4 million expense in 2018), a $1.6 million benefit from decreased liability for uncertain tax positions in 2019 (vs. $4.7 million expense in 2018), and a larger benefit from energy tax credits in 2018[161][162][163] LIQUIDITY AND CAPITAL RESOURCES MDC's liquidity and capital resources, including cash, marketable securities, a $1 billion Revolving Credit Facility, and a $75 million Mortgage Repurchase Facility, are deemed adequate for short and long-term needs - The company's capital structure includes stockholders' equity, long-term senior notes, a Revolving Credit Facility, and a Mortgage Repurchase Facility[168] - In January 2020, the company completed an offering of $300 million of 3.850% senior notes due January 2030[168][443] - The Revolving Credit Facility has an aggregate commitment of $1 billion, with $15.0 million in borrowings and $23.5 million in letters of credit outstanding at December 31, 2019, leaving $961.5 million in borrowing capacity[171][175] - The Mortgage Repurchase Facility provides liquidity up to $75 million (temporarily increased to $150 million at December 31, 2019), with $149.6 million of mortgage loans obligated to repurchase at year-end 2019[176] - Net cash provided by operating activities was $57.8 million in 2019, a significant improvement from net cash used of $7.9 million in 2018[181] - Off-balance sheet arrangements include lot option purchase contracts with $27.4 million in cash deposits and $7.2 million in letters of credit securing options to purchase 8,881 lots for an estimated $670.3 million[184] Contractual Obligations at December 31, 2019 (in thousands) | Obligation | Total | Less than 1 Year | 1 - 3 Years | 4 - 5 Years | After 5 Years | | :------------------ | :------------ | :--------------- | :---------- | :---------- | :------------ | | Senior notes | $1,000,000 | $250,000 | $- | $250,000 | $500,000 | | Interest on senior notes | $773,906 | $50,781 | $87,500 | $80,625 | $555,000 | | Operating leases | $37,775 | $6,300 | $13,019 | $10,167 | $8,289 | | Total | $1,811,681 | $307,081 | $100,519 | $340,792 | $1,063,289 | CRITICAL ACCOUNTING ESTIMATES AND POLICIES This section outlines key accounting estimates and policies, including homebuilding inventory valuation, warranty accruals, insurance reserves, litigation accruals, and revenue recognition for homebuilding and financial services - Homebuilding inventories are carried at cost unless events indicate the carrying value may not be recoverable, in which case they are evaluated for impairment quarterly at the subdivision level based on estimated future undiscounted cash flows[192][193] - Warranty accruals are recorded for each home closed based on historical payment experience to cover expected costs of materials and labor during warranty periods[202] - Insurance reserves for Allegiant and StarAmerican are established based on actuarial studies, considering historical claim patterns, pending claims, and changing regulatory environments[203] - Revenue from home deliveries is recognized when performance obligations are satisfied, generally at the home closing date when title and possession transfer to the buyer[205][291] - Revenue for HomeAmerican primarily reflects origination fees and the sale or expected future sale of mortgage loans, including estimated earnings from servicing rights, recognized when an interest rate lock commitment is made[208][295] - Stock-based compensation expense is measured and recognized at the fair value of share-based payments granted, using Black-Scholes for service/performance conditions and Monte Carlo for market conditions[212][300] RECENTLY ISSUED ACCOUNTING STANDARDS The company adopted several new accounting standards, including ASU 2016-02 (Leases) which resulted in recording $34.2 million in net lease assets and $34.3 million in lease liabilities, with ASU 2016-13 (Credit Losses) effective January 1, 2020, expected to have an immaterial impact - ASU 2016-02, Leases (ASC 842), adopted January 1, 2019, resulted in recording $34.2 million in additional net lease assets and $34.3 million in lease liabilities, with no material impact on consolidated statements of operations or cash flows[303][304] - ASU 2016-01, Financial Instruments-Overall, adopted January 1, 2018, changed the recognition of fair value changes for equity investments with readily determinable fair values to net income, resulting in a $1.6 million decrease in income before taxes for 2018[308] - ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), effective January 1, 2020, is expected to result in an approximate $0.1 million decrease to the opening balance of retained earnings, with no material impact on operations or cash flows[312] ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk MDC is exposed to market risks from interest rate fluctuations on mortgage loans, interest rate lock commitments, and debt, using derivative instruments like forward sales of mortgage-backed securities to hedge risk - The company is exposed to market risks related to fluctuations in interest rates on mortgage loans held-for-sale, mortgage interest rate lock commitments, and debt[217] - Derivative instruments, primarily interest rate lock commitments and forward sales of mortgage-backed securities, are used to hedge interest rate risk[217][218] - At December 31, 2019, the locked pipeline had an aggregate principal balance of $104.5 million (average 3.72% interest rate), and mortgage loans held-for-sale totaled $191.3 million (average 3.66% interest rate)[217] - Fixed-rate debt (senior notes) fair value is affected by interest rate changes, but not earnings or cash flows, while variable-rate debt (Revolving Credit Facility, Mortgage Repurchase Facility) affects earnings and cash flows[219] Fixed Rate Debt (Senior Notes) at December 31, 2019 (in thousands) | Debt Type | Carrying Amount | Fair Value | Average Interest Rate | | :-------------------------------------- | :-------------- | :---------- | :-------------------- | | $250 Million 5.625% senior notes due February 2020 | $249,909 | $250,400 | 5.63% | | $250 Million 5.500% senior notes due January 2024 | $249,005 | $272,083 | 5.50% | | $500 Million 6.000% senior notes due January 2043 | $490,508 | $528,542 | 6.00% | | Total | $989,422 | $1,051,025 | 5.78% | ITEM 8. Consolidated Financial Statements This section presents the audited consolidated financial statements for M.D.C. Holdings, Inc. and its subsidiaries, with Ernst & Young LLP issuing an unqualified opinion on the financial statements and internal control over financial reporting - The consolidated financial statements include the Report of Independent Registered Public Accounting Firm, Consolidated Balance Sheets, Statements of Operations and Comprehensive Income, Stockholders' Equity, and Cash Flows[225] - Ernst & Young LLP issued an unqualified opinion on the consolidated financial statements for the period ended December 31, 2019, and on the effectiveness of the company's internal control over financial reporting[228][230] - Critical audit matters identified include the evaluation of inventories for impairment (due to subjective home sales revenue assumptions) and the evaluation of insurance reserves (due to reliance on actuarial projections of future claims)[234][235][238][239] ITEM 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure There were no changes in or disagreements with accountants on accounting and financial disclosure - No changes in or disagreements with accountants on accounting and financial disclosure[459] ITEM 9A. Controls and Procedures Management concluded that the company's disclosure controls and procedures and internal control over financial reporting were effective as of December 31, 2019 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2019[460] - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2019, based on the COSO (2013 framework) criteria[461][465] - There were no changes in internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting during the fourth quarter[463] ITEM 9B. Other Information No other information is required to be reported under this item - None[473] PART III ITEM 10. Directors, Executive Officers and Corporate Governance Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's 2020 definitive proxy statement - Information required by this item is incorporated by reference from the company's 2020 definitive proxy statement[475] - The company's Corporate Code of Conduct, Corporate Governance Guidelines, and committee charters are available on its website, www.mdcholdings.com[476](index=476&type=chunk) ITEM 11. Executive Compensation Executive compensation information is incorporated by reference from the company's proxy statement - Information required by this item is incorporated by reference from the company's proxy statement[477] ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Information on security ownership of beneficial owners and management is incorporated by reference from the company's proxy statement - Information required by this item is incorporated by reference from the company's proxy statement[478] ITEM 13. Certain Relationships and Related Transactions, and Director Independence Information on certain relationships, related transactions, and director independence is incorporated by reference from the company's proxy statement - Information required by this item is incorporated by reference from the company's proxy statement[479] ITEM 14. Principal Accountant Fees and Services Information on principal accountant fees and services is incorporated by reference from the company's proxy statement - Information required by this item is incorporated by reference from the company's proxy statement[480] PART IV ITEM 15. Exhibits and Financial Statement Schedules This section lists the financial statements included in Part II, Item 8, and provides an index to all exhibits filed with the 10-K report, including corporate documents, debt agreements, and equity incentive plans - The Consolidated Financial Statements of the Company and its subsidiaries are included in Part II, Item 8[481][482] - All financial statement schedules are omitted because they are not applicable, not material, not required, or the required information is included in the applicable Consolidated Financial Statements or notes thereto[483] - The Index to Exhibits includes corporate documents, debt agreements (e.g., Senior Notes, Credit Agreement, Master Repurchase Agreement), equity incentive plans, and employment agreements[485][486][487][488][489][490] ITEM 16. Form 10-K Summary This item is not applicable to the company's filing - Not applicable[494] SIGNATURES The report is duly signed on behalf of M.D.C. Holdings, Inc. by its Senior Vice President, Chief Financial Officer, and Principal Accounting Officer, Robert N. Martin, and also by the Chairman and CEO, Larry A. Mizel, and Director, President and COO, David D. Mandarich, along with other directors - The report is signed by Robert N. Martin (Senior Vice President, Chief Financial Officer, and Principal Accounting Officer), Larry A. Mizel (Chairman of the Board of Directors and Chief Executive Officer), David D. Mandarich (Director, President and Chief Operating Officer), and other directors[496][499][500]