Investments in Unconsolidated Entities

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Entities

Investments in Unconsolidated Entities

As of December 31, 2019, we held equity investments in five active homebuilding partnerships or limited liability companies and one financial services limited liability company. Our participation in these entities may be as a developer, a builder, or an investment partner. Our ownership percentage varies from 7% to 65%, depending on the investment, with no controlling interest held in any of these investments. Subsequent to December 31, 2019, a reconsideration event under ASC 810 occurred for our financial services limited liability company, which will require us to reassess whether the joint venture is a VIE and, if so, whether the Company is the primary beneficiary. The Company will perform this analysis during the quarter ending March 31, 2020.

Unconsolidated Financial Information

Aggregated assets, liabilities and operating results of the entities we account for as equity-method investments are provided below. Because our ownership interest in these entities varies, a direct relationship does not exist between the information presented below and the amounts that are reflected on our consolidated balance sheets as our investment in unconsolidated entities or on our consolidated statement of operations as equity in income (loss) of unconsolidated entities.

Assets and liabilities of unconsolidated entities (in thousands):

	December 31,
	2019		2018
Assets
Cash	$	8,537	$	13,337
Receivables	7,393		4,674
Real estate inventories	116,760		99,864
Other assets	703		811
Total assets	$	133,393	$	118,686
Liabilities and equity
Accounts payable and other liabilities	$	11,009	$	11,631
Company’s equity	11,745		5,410
Outside interests’ equity	110,639		101,645
Total liabilities and equity	$	133,393	$	118,686

Results of operations from unconsolidated entities (in thousands):

	Year Ended December 31,
	2019			2018			2017
Net sales	$	30,691		$	28,745		$	24,247
Other operating expense	(16,981		)	(17,447		)	(13,904		)
Other income	175			97			120
Net income	$	13,885		$	11,395		$	10,463
Company’s equity in income (loss) of unconsolidated entities	$	9,264		$	8,124		$	(5,007	)