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Investments in Unconsolidated Entities
12 Months Ended
Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Entities
Investments in Unconsolidated Entities

As of December 31, 2018, we held equity investments in four active homebuilding partnerships or limited liability companies and one financial services limited liability company. Our participation in these entities may be as a developer, a builder, or an investment partner. Our ownership percentage varies from 3% to 65%, depending on the investment, with no controlling interest held in any of these investments.
Investments Held
Our cumulative investment in entities accounted for on the equity method, including our share of earnings and losses, consisted of the following (in thousands):
 
 
December 31,
 
2018
 
2017
Limited liability company interests
$
2,701

 
$
2,687

General partnership interests
2,709

 
3,183

Total
$
5,410

 
$
5,870


 
In the fourth quarter of 2017, we fully impaired a $13.2 million investment in a joint venture formed as a limited liability company in 1999 for the entitlement and development of land located in Los Angeles County, California. This $13.2 million impairment charge is included in equity in (loss) income of unconsolidated entities under our homebuilding operations on the consolidated statements of operations. Although we continue to hold a 3% equity stake in the joint venture, we are a non-funding member of the limited liability company and we expect our equity stake to be further diluted. This impairment charge is included in the Pardee Homes reporting segment in Note 2, Segment Information.
Unconsolidated Financial Information
Aggregated assets, liabilities and operating results of the entities we account for as equity-method investments are provided below. Because our ownership interest in these entities varies, a direct relationship does not exist between the information presented below and the amounts that are reflected on our consolidated balance sheets as our investment in unconsolidated entities or on our consolidated statement of operations as equity in (loss) income of unconsolidated entities.
Assets and liabilities of unconsolidated entities (in thousands):
 
December 31,
 
2018
 
2017
Assets
 
 
 
Cash
$
13,337

 
$
11,678

Receivables
4,674

 
6,564

Real estate inventories
99,864

 
99,997

Other assets
811

 
936

Total assets
$
118,686

 
$
119,175

Liabilities and equity
 
 
 
Accounts payable and other liabilities
$
11,631

 
$
12,208

Company’s equity
5,410

 
5,870

Outside interests' equity
101,645

 
101,097

Total liabilities and equity
$
118,686

 
$
119,175


Results of operations from unconsolidated entities (in thousands):
 
 
Year Ended December 31,
 
2018
 
2017
 
2016
Net sales
$
28,745

 
$
24,247

 
$
18,725

Other operating expense
(17,447
)
 
(13,904
)
 
(11,315
)
Other income
97

 
120

 
4

Net income
$
11,395

 
$
10,463

 
$
7,414

Company’s equity in income (loss) of unconsolidated entities
$
8,124

 
$
(5,007
)
 
$
4,989