Investment in Unconsolidated Affiliates

As of February 28, 2018, the Partnership owns a 49% ownership interest in each of SG2 Holdings, North Star Holdings, Lost Hills Blackwell Holdings and Henrietta Holdings and a 34% ownership interest in Stateline Holdings. The minority membership interests are accounted for as equity method investments, as the Partnership is able to exercise significant influence through its governing board, while the non-affiliated majority owner otherwise controls. The following table summarizes the activity of the Partnership’s investments in its unconsolidated affiliates:



	Three Months Ended
(in thousands)	February 28, 2018			February 28, 2017
Balance at the beginning of the period	$	768,258		$	475,078
Investments in its unconsolidated affiliates during the period	—			330,027
Equity in earnings in unconsolidated affiliates (1)	2,000			606
Distributions from unconsolidated affiliates	(17,612		)	(17,711		)
Balance at the end of the period	$	752,646		$	788,000


(1)	The net income used to determine the Partnership’s equity in earnings of unconsolidated affiliates reflects adjustments pursuant to the equity method of accounting, including the amortization of basis differences resulting from the Partnership’s proportionate share of certain equity method investees’ net assets exceeding their carrying values.

The difference between the amounts at which the Partnership’s investments in unconsolidated affiliates are carried and the Partnership’s proportionate share of the equity method investee’s net assets for equity method investments was $135.3 million and $136.4 million as of February 28, 2018 and November 30, 2017, respectively. The Partnership accretes the basis difference over the life of the underlying assets and the accretion expense was $1.0 million for each of the three months ended February 28, 2018 and February 28, 2017.

The following table presents summarized financial information of SG2 Holdings, North Star Holdings, Lost Hills Blackwell Holdings, Henrietta Holdings and Stateline Holdings as derived from the unaudited condensed consolidated financial statements of such entities:



	Three Months Ended
(in thousands)	February 28, 2018			February 28, 2017
Summary statements of operations information:
Revenue	$	24,177		$	19,616
Operating expenses	26,290			26,393
Net loss	(2,357		)	(7,759		)