Investments in Joint Ventures

6 Months Ended

Jun. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

The Company enters into joint ventures, from time to time, for the purpose of acquisition and co-development of land parcels and lots, which are then sold to the Company, its joint venture partners or others at market prices. It participates in a number of joint ventures in which it does not have a controlling interest. As of June 30, 2015, the Company participated in five active homebuilding joint ventures in the 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:



	JUNE 30, 2015	DECEMBER 31, 2014
North	155	155
Texas	230	242
West	226	226
Total	611	623

At June 30, 2015 and December 31, 2014, the Company’s investments in its unconsolidated joint ventures totaled $13.1 million and $12.6 million, respectively, which included $906,000 and $837,000, respectively, of homebuilding interest capitalized to investments in unconsolidated joint ventures. Its investments in joint ventures were included in “Other” assets within the Consolidated Balance Sheets. For the three months ended June 30, 2015 and 2014, the Company’s earnings from its unconsolidated joint ventures totaled $281,000 and $261,000, respectively. For the six months ended June 30, 2015 and 2014, the Company’s earnings from its unconsolidated joint ventures totaled $497,000 and $363,000, respectively. Earnings from unconsolidated joint ventures were included in “Cost of sales” within the Consolidated Statements of Earnings.