Investments in Joint Ventures

6 Months Ended

Jun. 30, 2012

Investments in Joint Ventures

Investments in Joint Ventures

Note 9.  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 June 30, 2012, 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:

	JUNE 30, 2012			DECEMBER 31, 2011
	LOTS	LOTS		LOTS	LOTS
	OWNED	OPTIONED	TOTAL	OWNED	OPTIONED	TOTAL
North	150	-	150	150	-	150
Southeast	-	-	-	-	-	-
Texas	3	-	3	20	-	20
West	172	-	172	172	-	172
Total	325	-	325	342	-	342

At June 30, 2012 and December 31, 2011, the Company’s investments in its unconsolidated joint ventures totaled $8.9 million and $10.0 million, respectively, and were included in “Other” assets within the Consolidated Balance Sheets. For the three and six months ended June 30, 2012, the Company’s equity in earnings from its unconsolidated joint ventures totaled $563,000 and $673,000, respectively. For the three and six months ended June 30, 2011, the Company’s equity in losses from its unconsolidated joint ventures totaled $1.7 million.