Variable Interest Entities
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Dec. 31, 2013
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Variable Interest Entities |
Consolidated VIEs — The Company has nine wholly-owned subsidiaries, which are VIEs due to following:
The Company determined it is the primary beneficiary and holds a controlling financial interest in each of the aforementioned property and development entities due to the Company’s power to direct the activities that most significantly impact the economic performance of the entities, as well as its obligation to absorb the losses and its right to receive benefits from these entities that could potentially be significant to these entities. As such, the transactions and accounts of these VIEs are included in the accompanying condensed consolidated financial statements. The Company did not own these entities as of December 31, 2012. The aggregate carrying amount and major classifications of the consolidated assets that can be used to settle obligations of the VIEs and liabilities of the consolidated VIEs that are non-recourse to the Company as of December 31, 2013 and 2012 are as follows (in thousands):
The Company’s maximum exposure to loss as a result of its involvement with these VIEs is limited to its net investment in these entities which totaled approximately $33.8 million as of December 31, 2013. The Company’s exposure is limited because of the non-recourse nature of the borrowings of the VIEs. Unconsolidated VIEs — The Company determined that the borrowing entity under its note receivable from related party represents a VIE due to the transaction structure; refer to Note 11, “Related Party Arrangements” for additional information. |