10.	Investments in Unconsolidated Land Development and Homebuilding Joint Ventures

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.

During each of the

three

months ended

March

31,

2017

and

2016,

all of our investments in unconsolidated joint ventures were reviewed for impairment. Based on the impairment review,

joint venture communities were determined to be impaired for the

three

months ended

March

31,

2017

2016.

Our investments in 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,

2017,

with the exception of

one

homebuilding joint venture that we consolidated during the

2017

first

quarter in accordance with ASC

810,

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. During the

2017

first

quarter, we entered into a homebuilding joint venture with an unrelated party. Based on our assessment of the joint venture’s operating agreement in accordance with ASC

810,

we determined that this joint venture is a consolidated VIE where CalAtlantic Group, Inc. is the primary beneficiary that has both (i) the power to direct the activities of the entity that most significantly impact the entity’s economic performance and (ii) the obligation to absorb the expected losses of the entity and right to receive benefits from the entity that could be potentially significant to the joint venture.