Investment in Unconsolidated Joint Ventures

12 Months Ended

Dec. 31, 2014

Investment in Unconsolidated LLCs [Abstract]

Equity Method Investments Disclosure [Text Block]

Investment in Unconsolidated Joint Ventures

The Company has periodically partnered with other land developers or homebuilders to share in the cost of land investment and development through joint ownership and development agreements, joint ventures, and other similar arrangements. For such joint venture arrangements where a special purpose entity is established to own the property, we have determined that we do not have substantive control over any of these entities; therefore, they are recorded using the equity method of accounting. The Company’s maximum exposure related to its investment in these joint venture arrangements as of December 31, 2014 is the total amount invested of $30.3 million, consisting of $27.8 million which is reported as Investment in Unconsolidated Joint Ventures on our Consolidated Balance Sheets, and a $2.5 million note due to the Company from one of the unconsolidated joint ventures (reported in Other Assets). Included in the Company’s investment in unconsolidated joint ventures at both December 31, 2014 and December 31, 2013 were $0.2 million and $0.8 million of capitalized interest and other costs, respectively.

The Company evaluates its investment in unconsolidated joint ventures for potential impairment on a quarterly basis. If the fair value of the investment (see Notes 1 and 3 of our Consolidated Financial Statements) is less than the investment’s carrying value, and the Company determines the decline in value was other than temporary, the Company would write down the investment to fair value.

Summarized condensed combined financial information for the unconsolidated joint ventures that are included in the homebuilding segments as of December 31, 2014 and 2013 and for the years ended December 31, 2014, 2013 and 2012 is as follows:

Summarized Condensed Combined Balance Sheets:

	December 31,
(In thousands)	2014		2013
Assets:
Single-family lots, land and land development costs (a) (b)	$	49,987	$	73,069
Other assets	2,917		2,972
Total assets	$	52,904	$	76,041
Liabilities and partners’ equity:
Liabilities:
Notes payable	$	12,153	$	8,022
Other liabilities	2,887		4,041
Total liabilities	15,040		12,063
Partners’ equity:
Company’s equity (a) (b)	$	18,728	$	32,103
Other equity	19,136		31,875
Total partners’ equity	$	37,864	$	63,978
Total liabilities and partners’ equity	$	52,904	$	76,041

(a) For the years ended December 31, 2014 and 2013, impairment expenses and other miscellaneous adjustments totaling $6.0 million and $10.4 million, respectively, were excluded from the table above.

(b) For the years ended December 31, 2014 and 2013, the table above excludes the Company’s investment in joint development arrangements for which a special purpose entity was not established, totaling $15.0 million and $13.5 million, respectively.

Summarized Condensed Combined Statements of Operations:

	Year Ended December 31,
(In thousands)	2014		2013		2012
Revenue	$	2,424	$	2,909	$	—
Costs and expenses	1,147		1,763		15
Income (loss)	$	1,277	$	1,146	$	(15	)

The Company’s total equity in the income (loss) relating to the above homebuilding unconsolidated joint ventures was $0.3 million for 2014 and 2013 and less than ($0.1 million) for 2012, respectively.