Annual report pursuant to Section 13 and 15(d)

INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)

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INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)
 12 Months Ended
Dec. 31, 2024
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):
At December 31,
2024 2023
Assets:
Cash
 $ 4,434  $ 3,546 
Real estate
 66,443  28,395 
Other assets
 7,286  6,514 
Total assets $ 78,163  $ 38,455 
Liabilities and equity:
Accounts payable and other liabilities $ 7,148  $ 6,537 
Equity of:
Meritage (1) 27,735  16,279 
Other 43,280  15,639 
Total liabilities and equity $ 78,163  $ 38,455 
  Years Ended December 31,
  2024 2023 2022
Revenue $ 60,460  $ 46,842  $ 46,264 
Costs and expenses (41,559) (37,666) (36,565)
Net earnings of unconsolidated entities $ 18,901  $ 9,176  $ 9,699 
Meritage’s share of pre-tax earnings (1) (2) $ 9,225  $ 6,371  $ 6,140 

(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 (loss)/earnings from our mortgage joint venture is recorded in (Loss)/earnings from financial services unconsolidated entities and other, net on the accompanying consolidated income statements. Our share of pre-tax (loss)/earnings from all other joint ventures is recorded in Other income, net on the accompanying 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.