Note 7 - Investments in Unconsolidated Land Development and Homebuilding Joint Ventures

12 Months Ended

Dec. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

7. Investments in Unconsolidated Land Development and Homebuilding Joint Ventures

The table set forth below summarizes the combined statements of operations for our unconsolidated land development and homebuilding joint ventures that we accounted for under the equity method:

	Year December 31,
	2015			2014			2013
	(Dollars in thousands)
	(Unaudited)
Revenues	$	43,806		$	39,898		$	32,546
Cost of sales and expenses		(33,587	)		(47,519	)		(30,465	)
Income (loss) of unconsolidated joint ventures	$	10,219		$	(7,621	)	$	2,081
Income (loss) from unconsolidated joint ventures reflected in the accompanying consolidated statements of operations	$	1,966		$	(668	)	$	949

Income (loss) from unconsolidated joint ventures reflected in the accompanying consolidated statements of operations represents our share of the income (loss) of our unconsolidated land development and homebuilding joint ventures, which is allocated based on the provisions of the underlying joint venture operating agreements less any additional impairments recorded against our investments in joint ventures which we do not deem recoverable. In addition, we defer recognition of our share of income that relates to lots purchased by us from land development joint ventures until we ultimately sell the homes to be constructed to third parties, at which time we account for these earnings as a reduction of the cost basis of the lots purchased from these joint ventures. For the years ended December 31, 2015, 2014 and 2013, income (loss) from unconsolidated joint ventures was primarily attributable to our share of income (loss) related to our California joint ventures, which was allocated based on the provisions of the underlying joint venture operating agreements.

During the years ended December 31, 2015, 2014 and 2013, all of our unconsolidated joint ventures were reviewed for impairment. Based on the impairment review, no joint venture projects were determined to be impaired for the years ended December 31, 2015, 2014 or 2013.

The table set forth below summarizes the combined balance sheets for our unconsolidated land development and homebuilding joint ventures that we accounted for under the equity method:

	December 31,
	2015		2014
	(Dollars in thousands)
	(Unaudited)
Assets:
Cash	$	34,893	$	29,472
Inventories		510,502		197,727
Other assets		14,540		10,372
Total assets	$	559,935	$	237,571
Liabilities and Equity:
Accounts payable and accrued liabilities	$	26,571	$	16,173
Bank debt		33,704		30,000
CalAtlantic equity		130,750		54,347
Other Members' equity		368,910		137,051
Total liabilities and equity	$	559,935	$	237,571
Investments in unconsolidated joint ventures reflected in the accompanying consolidated balance sheets	$	132,763	$	50,111

In some cases our net investment in these unconsolidated joint ventures is not equal to our proportionate share of equity reflected in the table above primarily because of differences between asset impairments that we recorded in prior periods against our joint venture investments and the impairments recorded by the applicable joint venture. As of December 31, 2015 and 2014, substantially all of our investments in unconsolidated joint ventures were in California. Our investments in unconsolidated joint ventures also included approximately $2.9 million and $0.7 million of homebuilding interest capitalized to investments in unconsolidated joint ventures as of December 31, 2015 and 2014, respectively, which capitalized interest is not included in the combined balance sheets above.

Our investments in these unconsolidated joint ventures may represent a variable interest in a VIE depending on, among other things, the economic interests of the members of the entity and the contractual terms of the arrangement. We analyze all of our unconsolidated joint ventures under the provisions of ASC 810 to determine whether these entities are deemed to be VIEs, and if so, whether we are the primary beneficiary. As of December 31, 2015, all of our homebuilding and land development joint ventures with unrelated parties were determined under the provisions of ASC 810 to be unconsolidated joint ventures either because they were not deemed to be VIEs, or, if they were a VIE, we were not deemed to be the primary beneficiary.