INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES

3 Months Ended

Mar. 31, 2022

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. These entities are generally involved in real estate development, homebuilding and/or mortgage lending activities. The real estate development joint ventures primary activity is development and sale of lots to joint venture partners and/or 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 are as follows (in thousands):


	As of
	March 31, 2022		December 31, 2021
Assets:
Real estate inventory	$	418,004	$	414,687
Other assets	134,890		118,990
Total assets	$	552,894	$	533,677
Liabilities and owners’ equity:
Debt	$	176,477	$	167,842
Other liabilities	23,231		16,245
Total liabilities	199,708		184,087
Owners’ equity:
TMHC	173,231		171,406
Others	179,955		178,184
Total owners’ equity	353,186		349,590
Total liabilities and owners’ equity	$	552,894	$	533,677


	Three Months Ended March 31,
	2022		2021
Revenues	$	30,401	$	49,880
Costs and expenses	(25,694)		(34,157)
Income of unconsolidated entities	$	4,707	$	15,723
TMHC’s share in income of unconsolidated entities	$	1,831	$	5,661
Distributions to TMHC from unconsolidated entities	$	2,058	$	10,613

Consolidated Entities

We have several joint ventures for the purpose of real estate development and homebuilding activities, which we have determined to be VIEs. As the managing member, we oversee the daily operations and have the power to direct the activities of the VIEs, or joint ventures. For this specific subset of joint ventures, 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 joint ventures. Therefore, we are the primary beneficiary of these joint venture VIEs, and these entities are consolidated.As of March 31, 2022, the assets of the consolidated joint ventures totaled $260.0 million, of which $23.1 million was cash and cash equivalents and $79.0 million was owned inventory. As of December 31, 2021, the assets of the consolidated joint ventures totaled $291.8 million, of which $22.3 million was cash and cash equivalents and $147.6 million was owned inventory. The liabilities of the consolidated joint ventures totaled $141.2 million and $165.1 million as of March 31, 2022 and December 31, 2021, respectively, and were primarily comprised of notes payable, accounts payable and accrued liabilities.