11.

Investments in Unconsolidated Land Development and Homebuilding Joint Ventures

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

	Six Months Ended June 30,
	2016			2015
	(Dollars in thousands)
	(Unaudited)

Revenues	$	20,204		$	18,350
Cost of sales and expenses		(12,825	)		(21,556	)
Income (loss) of unconsolidated joint ventures	$	7,379		$	(3,206	)
Income (loss) from unconsolidated joint ventures reflected in the accompanying condensed consolidated statements of operations	$	1,412		$	(502	)

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, which is allocated based on the provisions of the underlying joint venture operating agreements less any additional impairments recorded against our investments in joint ventures which we do not deem recoverable. 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 to be constructed to third parties, at which time we account for these earnings as a reduction of the cost basis of the lots purchased from these joint ventures. For the six months ended June 30, 2016, income (loss) from unconsolidated joint ventures included $0.8 million of income from our Southwest region joint ventures and $0.4 million of income from our Southeast region joint ventures. For the six months ended June 30, 2015, income (loss) from unconsolidated joint ventures was primarily attributable to our share of income (loss) related to our West region joint ventures.

During each of the six months ended June 30, 2016 and 2015, 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 six months ended June 30, 2016 or 2015.

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

	June 30, 2016		December 31, 2015
	(Dollars in thousands)
	(Unaudited)
Assets:
Cash	$	23,221	$	34,893
Inventories		584,892		510,502
Other assets		14,272		14,540
Total assets	$	622,385	$	559,935

Liabilities and Equity:
Accounts payable and accrued liabilities	$	26,590	$	26,571
Non-recourse debt		30,223		33,704
CalAtlantic equity		156,277		130,750
Other members' equity		409,295		368,910
Total liabilities and equity	$	622,385	$	559,935

Investments in unconsolidated joint ventures reflected in the accompanying condensed consolidated balance sheets	$	147,631	$	132,763

In some cases our net investment in these unconsolidated joint ventures is not equal to our proportionate share of total 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 June 30, 2016 and December 31, 2015, substantially all of our investments in unconsolidated joint ventures were in California. Our investments in unconsolidated joint ventures also included approximately $4.3 million and $2.9 million of homebuilding interest capitalized to investments in unconsolidated joint ventures as of June 30, 2016 and December 31, 2015, respectively, which capitalized interest is not included in the condensed 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 June 30, 2016, 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 and we did not have a controlling interest, or, if they were a VIE, we were not deemed to be the primary beneficiary.