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Investment in Unconsolidated Ventures
3 Months Ended
Mar. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]  
Investment in Unconsolidated Ventures
Investment in Unconsolidated Ventures
We have participated in real estate ventures for the purpose of acquiring and developing residential, multifamily and mixed-use communities in which we may or may not have a controlling financial interest. U.S. GAAP requires consolidation of Variable Interest Entities (VIEs) in which an enterprise has a controlling financial interest and is the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performance and (b) the obligation to absorb the VIE losses and right to receive benefits that are significant to the VIE. We examine specific criteria and use judgment when determining whether a venture is a VIE and whether we are the primary beneficiary. We perform this review initially at the time we enter into venture agreements and reassess upon reconsideration events.
On February 8, 2018, we sold our ownership interest in 8 of our unconsolidated ventures to Starwood as part of a strategic asset sale. (See Note 4—Held for Sale). During the three months ended March 31, 2018, we also sold our interest in a venture, generating $11,049,000 in net proceeds and recognizing gain of $2,030,000 which is included in gain on sale of assets. At March 31, 2018, we had ownership interests in 6 ventures that we accounted for using the equity method, none of which were a VIE.
Combined summarized balance sheet information for our ventures accounted for using the equity method follows:
 
 
March 31,
2018
 
December 31,
2017
 
 
(In thousands)
Assets:
 
 
 
 
Cash and cash equivalents
 
$
6,359

 
$
13,119

Real estate
 
88,805

 
168,914

Other assets
 
1,353

 
21,721

Total assets
 
$
96,517

 
$
203,754

Liabilities and Equity:
 
 
 
 
Accounts payable and other liabilities
 
$
5,208

 
$
13,101

Debt (a)
 
45,761

 
85,133

Equity
 
45,548

 
105,520

Total liabilities and equity
 
$
96,517

 
$
203,754

 
 
 
 
 
Forestar's investment in unconsolidated ventures
 
$
17,284

 
$
64,579



Combined summarized income statement information for our ventures accounted for using the equity method follows:
 
 
Three Months Ended March 31,
 
 
2018
 
2017
 
 
(In thousands)
Revenues
 
$
3,381

 
$
22,301

Earnings
 
$
4,280

 
$
12,221

Forestar's equity in earnings of unconsolidated ventures
 
$
1,529

 
$
6,362


 _________________________
(a)  
As of March 31, 2018 and December 31, 2017, total debt outstanding includes $4,576,000 and $4,584,000 which is recourse to us.