Investments in unconsolidated entities
We participate in a number of joint ventures with independent third parties. Many of these joint ventures purchase, develop, and/or sell land and homes. A summary of our joint ventures is presented below ($000’s omitted):
|
| | | | | | | |
| December 31, |
| 2013 | | 2012 |
Investments in joint ventures with debt non-recourse to PulteGroup | $ | 26,532 |
| | $ | 11,155 |
|
Investments in other active joint ventures | 18,791 |
| | 34,474 |
|
Total investments in unconsolidated entities | $ | 45,323 |
| | $ | 45,629 |
|
| | | |
Total joint venture debt | $ | 12,408 |
| | $ | 6,915 |
|
| | | |
PulteGroup proportionate share of joint venture debt: | | | |
Joint venture debt with limited recourse guaranties | $ | 750 |
| | $ | 769 |
|
Joint venture debt non-recourse to PulteGroup | 3,654 |
| | 826 |
|
PulteGroup's total proportionate share of joint venture debt | $ | 4,404 |
| | $ | 1,595 |
|
In 2013, 2012, and 2011, we recognized (income) expense from unconsolidated joint ventures of $(1.1) million, $(4.1) million, and $(3.3) million, respectively. During 2013, 2012, and 2011, we made capital contributions of $1.7 million, $16.5 million, and $4.6 million, respectively, and received capital and earnings distributions of $3.1 million, $10.5 million, and $11.6 million, respectively.
The timing of cash obligations under the joint venture and any related financing agreements varies by agreement. If additional capital contributions are required and approved, we would need to contribute our pro rata portion of those capital needs in order to not dilute our ownership in the joint ventures. While future capital contributions may be required, we believe the total amount of such contributions will be limited. Our maximum financial loss exposure related to joint ventures is unlikely to exceed the combined investment and limited recourse guaranty totals.
