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Investments In Unconsolidated Entities
9 Months Ended
Sep. 30, 2011
Investments In Unconsolidated Entities [Abstract] 
Investments In Unconsolidated Entities
6.   Investments in unconsolidated entities

The Company participates in a number of joint ventures with independent third parties. These joint ventures generally purchase, develop, and/or sell land and homes in the United States or Puerto Rico. A summary of the Company's joint ventures is presented below ($000's omitted):

 

      September 30,
2011		      December 31,
2010		  

Investments in joint ventures with limited recourse guaranties

    $ 2       $ 122   

Investments in joint ventures with debt non-recourse to PulteGroup

      11,519         11,486   

Investments in other joint ventures

      25,663         34,705   
  

 

 

     

 

 

  

Total investments in unconsolidated entities

    $ 37,184       $ 46,313   
  

 

 

     

 

 

  

Total joint venture debt

    $ 11,671       $ 15,467   

PulteGroup's proportionate share of joint venture debt:

      

Joint venture debt with limited recourse guaranties

    $ 1,257       $ 1,444   

Joint venture debt non-recourse to PulteGroup

      2,178         3,696   
  

 

 

     

 

 

  

PulteGroup's total proportionate share of joint venture debt

    $ 3,435       $ 5,140   
  

 

 

     

 

 

  

The Company recognized income (expense) from its unconsolidated joint ventures of $(0.3) million and $2.0 million during the three and nine months ended September 30, 2011, respectively, compared with $(3.7) million and $1.7 million during the three and nine months ended September 30, 2010, respectively, including impairments of $1.9 million for the nine months ended September 30, 2010. During the nine months ended September 30, 2011 and 2010, the Company made capital contributions of $3.7 million and $22.7 million, respectively, to its joint ventures and received capital and earnings distributions of $9.4 million and $7.4 million, respectively, from its joint ventures.

The timing of cash obligations under the joint venture and related financing agreements varies by agreement and in certain instances is contingent upon the joint venture's sale of its land holdings. If additional capital contributions are required and approved, the Company would need to contribute its pro rata portion of those capital needs in order to not dilute its ownership in the joint ventures. While future capital contributions may be required, the Company believes the total amount of such contributions will be limited. The Company's maximum financial loss exposure related to joint ventures is unlikely to exceed the combined investment and limited recourse guaranty totals.

A terminated joint venture financing agreement required the Company and other members of one joint venture to guaranty for the benefit of the lender the completion of the project if the joint venture did not perform the required development and an increment of interest in certain circumstances. This joint venture defaulted under its debt agreement, and the lender foreclosed on the joint venture's property that served as collateral. During 2008, the lender also filed suit against the majority of the members of the joint venture, including the Company, in an effort to enforce the completion guaranty. In March 2011, the parties to this litigation executed a settlement agreement, and the Company paid its proportionate share of such settlement, which did not have a material impact on the Company's financial position, results of operations, or cash flows.

The Company has investments in other unconsolidated entities, some of which have debt. These investments include the Company's joint ventures in Puerto Rico, which are in a wind-down stage. The Company does not have any significant financing exposure related to these entities.