Note 9 - Investments in Unconsolidated Land Development and Homebuilding Joint Ventures

3 Months Ended

Mar. 31, 2013

Equity Method Investments and Joint Ventures Disclosure [Text Block]

9.         Investments in Unconsolidated Land Development and Homebuilding Joint Ventures

The table set forth below summarizes the combined statements of operations for our unconsolidated land development and homebuilding joint ventures that we accounted for under the equity method:

	Three Months Ended March 31,
	2013			2012
	(Dollars in thousands)
Revenues	$	17,192		$	2,599
Cost of sales and expenses		(14,870	)		(2,699	)
Income (loss) of unconsolidated joint ventures	$	2,322		$	(100	)
Income (loss) from unconsolidated joint ventures reflected in the accompanying condensed consolidated statements of operations	$	1,134		$	(1,522	)

Income (loss) from unconsolidated joint ventures reflected in the accompanying condensed consolidated statements of operations represents our share of the income (loss) of these unconsolidated land development and homebuilding joint ventures.  For the three months ended March 31, 2013 and 2012, income (loss) from unconsolidated joint ventures was primarily attributable to our share of income (loss) related to our California joint ventures, which was allocated based on the provisions of the underlying joint venture operating agreements.

During each of the three months ended March 31, 2013 and 2012, all of our unconsolidated joint ventures were reviewed for impairment.  Based on the impairment review, no joint venture projects were determined to be impaired for the three months ended March 31, 2013 or 2012.

The table set forth below summarizes the combined balance sheets for our unconsolidated land development and homebuilding joint ventures that we accounted for under the equity method:

	March 31, 2013		December 31, 2012
	(Dollars in thousands)
Assets:
Cash	$	12,107	$	15,627
Inventories		147,942		129,477
Other assets		10,673		10,783
Total assets	$	170,722	$	155,887
Liabilities and Equity:
Accounts payable and accrued liabilities	$	5,401	$	5,796
Non-recourse debt		16,410		―
Standard Pacific equity		50,183		51,173
Other members' equity		98,728		98,918
Total liabilities and equity	$	170,722	$	155,887
Investments in unconsolidated joint ventures reflected in the accompanying condensed consolidated balance sheets	$	53,024	$	52,443

In some cases our net investment in these unconsolidated joint ventures is not equal to our proportionate share of equity reflected in the table above primarily because of differences between asset impairments that we recorded  in prior periods against our joint venture investments and the impairments recorded by the applicable joint venture.  As of March 31, 2013 and December 31, 2012, substantially all of our investments in unconsolidated joint ventures were in California.  Our investments in unconsolidated joint ventures also included approximately $7.6 million and $6.9 million of homebuilding interest capitalized to investments in unconsolidated joint ventures as of March 31, 2013 and December 31, 2012, respectively, which capitalized interest is not included in the combined balance sheets above.

Our investments in these unconsolidated joint ventures may represent a variable interest in a VIE depending on, among other things, the economic interests of the members of the entity and the contractual terms of the arrangement.  We analyze all of our unconsolidated joint ventures under the provisions of ASC 810 to determine whether these entities are deemed to be VIEs, and if so, whether we are the primary beneficiary.  As of March 31, 2013, all of our homebuilding and land development joint ventures with unrelated parties were determined under the provisions of ASC 810 to be unconsolidated joint ventures either because they were not deemed to be VIEs, or, if they were a VIE, we were not deemed to be the primary beneficiary.