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

3 Months Ended

Mar. 31, 2014

Equity Method Investments and Joint Ventures [Abstract]

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 account for under the equity method:

	Three Months Ended March 31,
	2014			2013
	(Dollars in thousands)
Revenues	$	31,224		$	17,192
Cost of sales and expenses		(33,321	)		(14,870	)
Income (loss) of unconsolidated joint ventures	$	(2,097	)	$	2,322
Income (loss) from unconsolidated joint ventures reflected in the accompanying condensed consolidated statements of operations	$	(437	)	$	1,134

Income (loss) from unconsolidated joint ventures reflected in the accompanying condensed consolidated statements of operations represents our share of the income (loss) of our unconsolidated land development and homebuilding joint ventures allocated based on the provisions of the underlying joint venture operating agreements. In addition, we defer recognition of our share of income that relates to lots purchased by us from land development joint ventures until we ultimately sell the homes we construct on such lots to third parties. Following such home sales, we account for these earnings as a reduction of the cost basis of the lots purchased from these joint ventures. For the three months ended March 31, 2014 and 2013, 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, 2014 and 2013, all of our investments in 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, 2014 and 2013.

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, 2014		December 31, 2013
	(Dollars in thousands)
Assets:
Cash	$	34,264	$	37,884
Inventories		186,207		211,929
Other assets		12,977		8,600
Total assets	$	233,448	$	258,413
Liabilities and Equity:
Accounts payable and accrued liabilities	$	18,606	$	20,496
Non-recourse debt		30,000		30,000
Standard Pacific equity		53,846		66,363
Other members' equity		130,996		141,554
Total liabilities and equity	$	233,448	$	258,413
Investments in unconsolidated joint ventures reflected in the accompanying condensed consolidated balance sheets	$	49,720	$	66,054

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, 2014 and December 31, 2013, substantially all of our investments in unconsolidated joint ventures were in California. Our investments in unconsolidated joint ventures also included approximately $1.5 million and $5.0 million of homebuilding interest capitalized to investments in unconsolidated joint ventures as of March 31, 2014 and December 31, 2013, 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, 2014, 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.