Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)

v3.20.2
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)
 6 Months Ended
Jun. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Summary of Condensed Financial Information Related to Unconsolidated Equity Method Joint Ventures
Summarized condensed combined financial information related to unconsolidated joint ventures that are accounted for using the equity method was as follows (in thousands):
As of
June 30, 2020 December 31, 2019
Assets:
Cash
 $ 8,842    $ 6,329   
Real estate
 6,079    6,654   
Other assets
 3,486    4,382   
Total assets $ 18,407    $ 17,365   
Liabilities and equity:
Accounts payable and other liabilities $ 8,655    $ 6,580   
Equity of:
Meritage (1)
4,691    5,678   
Other 5,061    5,107   
Total liabilities and equity $ 18,407    $ 17,365   
 
  Three Months Ended June 30, Six Months Ended June 30,
  2020 2019 2020 2019
Revenue $ 10,550    $ 10,846    $ 17,273    $ 19,844   
Costs and expenses (7,944)   (3,599)   (13,807)   (9,715)  
Net earnings of unconsolidated entities $ 2,606    $ 7,247    $ 3,466    $ 10,129   
Meritage’s share of pre-tax earnings (1) (2)
$ 1,048    $ 3,654    $ 1,735    $ 5,828   

(1)Balance represents Meritage’s interest, as reflected in the financial records of the respective joint ventures. This balance may differ from the balance reported in our consolidated financial statements due to the following reconciling items: (i) timing differences for revenue and distributions recognition, (ii) step-up basis and corresponding amortization, (iii) capitalization of interest on qualified assets, (iv) income deferrals as discussed in Note (2) below and (v) the cessation of allocation of losses from joint ventures in which we have previously written down our investment balance to zero and where we have no commitment to fund additional losses.
(2)Our share of pre-tax earnings is recorded in Earnings from financial services unconsolidated entities and other, net and Other income, net on our unaudited consolidated income statements and excludes joint venture profit related to lots we purchased from the joint ventures, if any. Such profit is deferred until homes are delivered by us and title passes to a homebuyer.