Investment in Unconsolidated Ventures

3 Months Ended

Dec. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

In the past, the Company has participated in real estate ventures for the purpose of acquiring and developing residential, multifamily and mixed-use communities in which the Company may or may not have a controlling financial interest. U.S. GAAP requires consolidation of Variable Interest Entities (VIEs) in which an enterprise has a controlling financial interest and is the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performance and (b) the obligation to absorb the VIE losses and right to receive benefits that are significant to the VIE. The Company examines specific criteria and uses judgment when determining whether a venture is a VIE and whether the Company is the primary beneficiary. The Company performs this review initially at the time it enters into venture agreements and reassesses upon reconsideration events.

At December 31, 2018, the Company had ownership interests in four ventures that it accounted for using the equity method, none of which was a VIE.

Combined summarized balance sheet information for our ventures accounted for using the equity method follows:



	December 31, 2018		September 30, 2018
	(In millions)
Assets:
Cash and cash equivalents	$	1.7	$	10.2
Real estate	13.7		17.2
Other assets	0.1		0.1
Total assets	$	15.5	$	27.5
Liabilities and Equity:
Accounts payable and other liabilities	$	0.3	$	0.6
Equity	15.2		26.9
Total liabilities and equity	$	15.5	$	27.5

Forestar's investment in unconsolidated ventures	$	7.4	$	11.7

Combined summarized income statement information for our ventures accounted for using the equity method follows:



	Three Months Ended December 31,
	2018		2017
	(In millions)
Revenues	$	1.8	$	8.6
Earnings	$	1.4	$	17.4
Forestar's equity in earnings of unconsolidated ventures	$	0.6	$	7.0