Investments in Joint Ventures

3 Months Ended

Mar. 31, 2013

Investments in Joint Ventures

Investments in Joint Ventures

Note 10.  Investments in Joint Ventures

The Company enters into joint ventures, from time to time, for the purpose of acquisition and co-development of land parcels and lots. It participates in a number of joint ventures in which it has less than a controlling interest. As of March 31, 2013, the Company participated in five active homebuilding joint ventures in the Austin, Chicago, Denver and Washington, D.C., markets. The Company recognizes its share of the respective joint ventures’ earnings or losses from the sale of lots to other homebuilders. It does not, however, recognize earnings from lots that it purchases from the joint ventures. Instead, the Company reduces its cost basis in each lot by its share of the earnings from the lot.

The following table summarizes each reporting segment’s total estimated share of lots owned and controlled by the Company under its joint ventures:

	MARCH 31, 2013			DECEMBER 31, 2012
	LOTS	LOTS		LOTS	LOTS
	OWNED	OPTIONED	TOTAL	OWNED	OPTIONED	TOTAL
North	150	-	150	145	-	145
West	172	-	172	172	-	172
Total	322	-	322	317	-	317

At March 31, 2013 and December 31, 2012, the Company’s investments in its unconsolidated joint ventures totaled $8.3 million and were included in “Other” assets within the Consolidated Balance Sheets. For the three months ended March 31, 2013 and 2012, the Company’s equity in earnings from its unconsolidated joint ventures totaled $164,000 and $110,000, respectively.