INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES

Unconsolidated Entities:

We have investments in a number of joint ventures with third parties, with ownership interests up to 50.0%. These entities are generally involved in real estate development, homebuilding and/or mortgage lending activities. Some of these joint ventures develop land for the sole use of the joint venture participants, including us, and others develop land for sale to both the joint venture participants and to unrelated builders. Our share of the joint venture profit relating to lots we purchase from the joint ventures is deferred until homes are delivered by us and title passes to a homebuyer.

Summarized, unaudited combined financial information of unconsolidated entities that are accounted for by the equity method is as follows (in thousands):



	As of
	March 31, 2020		December 31, 2019
Assets:
Real estate inventory	$	340,824	$	367,225
Other assets	181,730		132,812
Total assets	$	522,554	$	500,037
Liabilities and owners’ equity:
Debt	$	203,231	$	178,686
Other liabilities	19,294		20,490
Total liabilities	222,525		199,176
Owners’ equity:
TMHC	127,367		128,759
Others	172,662		172,102
Total owners’ equity	300,029		300,861
Total liabilities and owners’ equity	$	522,554	$	500,037



	Three Months Ended March 31,
	2020			2019
Revenues	$	48,972		$	61,016
Costs and expenses	(41,494		)	(52,820		)
Income of unconsolidated entities	$	7,478		$	8,196
TMHC’s share in income of unconsolidated entities	$	2,426		$	2,319
Distributions to TMHC from unconsolidated entities	$	8,202		$	5,615

Consolidated Entities:

As a result of the acquisition of WLH we now have a total of 25 joint ventures as of March 31, 2020 for the purpose of land development and homebuilding activities, which we have determined to be variable interest entities (“VIEs”). As the managing member, we have the power to direct the activities of the VIEs since we oversee the daily operations and based upon the allocation of income and loss per the applicable joint venture agreements and certain performance guarantees, we have potentially significant exposure to the risks and rewards of the VIEs. Therefore, we are the primary beneficiary of the joint ventures, and the VIEs are consolidated as of March 31, 2020.

As of March 31, 2020, the assets of the consolidated VIEs totaled $454.2 million, of which $34.4 million was cash and cash equivalents and $383.2 million was owned inventory. The liabilities of the consolidated VIEs totaled $222.3 million, primarily comprised of notes payable, accounts payable and accrued liabilities.