Investments in Joint Ventures

9 Months Ended

Sep. 30, 2013

Investments in Joint Ventures

Investments in Joint Ventures

Note 11.  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 September 30, 2013, the Company participated in six active homebuilding joint ventures in the Austin, Chicago, Denver, San Antonio 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 by the Company under its joint ventures:

	SEPTEMBER 30, 2013	DECEMBER 31, 2012
North	150	145
Texas	252	-
West	226	172
Total	628	317

At September 30, 2013 and December 31, 2012, the Company’s investments in its unconsolidated joint ventures totaled $12.4 million and $8.3 million, respectively, and were included in “Other” assets within the Consolidated Balance Sheets. The increase in the Company’s investments in unconsolidated joint ventures was primarily due to its investment in a joint venture in San Antonio during the second quarter of 2013. For the three months ended September 30, 2013 and 2012, the Company’s equity in earnings from its unconsolidated joint ventures totaled $546,000 and $306,000, respectively. For the nine months ended September 30, 2013 and 2012, the Company’s equity in earnings from its unconsolidated joint ventures totaled $787,000 and $979,000, respectively.