Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)

v3.10.0.1
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)
9 Months Ended
Sep. 30, 2018
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
 
September 30, 2018
 
December 31, 2017
Assets:
 
 
 
Cash
$
7,817

 
$
8,942

Real estate
56,808

 
55,552

Other assets
3,835

 
4,323

Total assets
$
68,460

 
$
68,817

Liabilities and equity:
 
 
 
Accounts payable and other liabilities
$
6,514

 
$
7,516

Notes and mortgages payable
26,798

 
25,194

Equity of:
 
 
 
Meritage (1)
14,690

 
14,521

Other
20,458

 
21,586

Total liabilities and equity
$
68,460

 
$
68,817


 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Revenue
$
13,722

 
$
9,593

 
$
31,036

 
$
30,622

Costs and expenses
(5,107
)
 
(4,138
)
 
(12,450
)
 
(14,724
)
Net earnings of unconsolidated entities
$
8,615

 
$
5,455

 
$
18,586

 
$
15,898

Meritage’s share of pre-tax earnings (1) (2)
$
5,245

 
$
3,398

 
$
11,223

 
$
10,648


(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 Earnings/(loss) from other unconsolidated entities, 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.