Annual report pursuant to Section 13 and 15(d)

INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)

v3.6.0.2
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)
12 Months Ended
Dec. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]  
Summary of Condensed Financial Information Related to Unconsolidated Equity Method Joint Ventures
Summarized condensed financial information related to unconsolidated joint ventures that are accounted for using the equity method was as follows (in thousands):
 
At December 31,
 
2016
 
2015
Assets:
 
 
 
Cash
$
7,446

 
$
7,888

Real estate
54,319

 
33,366

Other assets
6,461

 
4,514

Total assets
$
68,226

 
$
45,768

Liabilities and equity:
 
 
 
Accounts payable and other liabilities
$
7,339

 
$
7,331

Notes and mortgages payable
23,000

 
13,345

Equity of:
 
 
 
Meritage (1)
14,245

 
8,194

Other
23,642

 
16,898

Total liabilities and equity
$
68,226

 
$
45,768


 
 
Years Ended December 31,
 
2016
 
2015
 
2014
Revenue
$
72,486

 
$
35,510

 
$
28,458

Costs and expenses
(34,080
)
 
(16,240
)
 
(13,009
)
Net earnings of unconsolidated entities
$
38,406

 
$
19,270

 
$
15,449

Meritage’s share of pre-tax earnings (1) (2)
$
19,357

 
$
12,805

 
$
10,443


(1)
Balance represents Meritage’s interest, as reflected in the financial records of the respective joint ventures. This balance may differ from the balance reflected 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. As discussed in Note 2 to these consolidated financial statements, balances do not include $130,000$445,000 and $490,000 of capitalized interest that is a component of our investment balances at December 31, 2016, 2015 and 2014, respectively.
(2)
Our share of pre-tax earnings is recorded in Earnings from financial services unconsolidated entities and other, net or Earnings/(loss) from other unconsolidated entities, net, as applicable, on our consolidated statement of operations and excludes joint venture profit related to lots we purchased from the joint ventures. Such profit is deferred until homes are delivered by us and title passes to a homebuyer.