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Investments in Unconsolidated Entities | 6 Months Ended
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Jun. 30, 2022
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities As of June 30, 2022, we held equity investments in twelve active homebuilding partnerships or limited liability companies. Our participation in these entities may be as a developer, a builder, or an investment partner. Our ownership percentage varies from 7% to 50%, depending on the investment, with no controlling interest held in any of these investments. During the first quarter of 2022, a reconsideration event under ASC 810 occurred for our Tri Pointe Connect joint venture, which required us to reassess whether the joint venture is a variable interest entity (“VIE”) and, if so, whether the Company is the primary beneficiary. This mortgage financing joint venture was accounted for as an equity-method investment as of December 31, 2021. Based on the reassessment performed during the first quarter of 2022, this joint venture was deemed to be a VIE and the Company was identified as the primary beneficiary of the VIE. For further details, see Note 7, Variable Interest Entities. Unconsolidated Financial Information Aggregated assets, liabilities and operating results of the entities we account for as equity-method investments are provided below. Because our ownership interest in these entities varies, a direct relationship does not exist between the information presented below and the amounts that are reflected on our consolidated balance sheets as our investments in unconsolidated entities or on our consolidated statements of operations as equity in income of unconsolidated entities. Assets and liabilities of unconsolidated entities (in thousands):
| June 30, 2022 |  | December 31, 2021
Assets |  |  |
Cash | $ | 40,023 |  |  | $ | 35,966 |
Receivables | 11,658 |  |  | 8,359 |
Real estate inventories | 442,847 |  |  | 359,324 |
Other assets | 4,057 |  |  | 534 |
Total assets | $ | 498,585 |  |  | $ | 404,183 |
Liabilities and equity |  |  |
Accounts payable and other liabilities | $ | 128,851 |  |  | $ | 73,675 |
Company’s equity | 131,399 |  |  | 118,095 |
Outside interests’ equity | 238,335 |  |  | 212,413 |
Total liabilities and equity | $ | 498,585 |  |  | $ | 404,183 |
Results of operations from unconsolidated entities (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Net sales | $ | 17,399 |  |  | $ | 12,588 |  |  | $ | 22,722 |  |  | $ | 20,397 |
Other operating expense | (17,335) |  |  | (6,973) |  |  | (22,779) |  |  | (10,821) |
Other loss, net | 94 |  |  | (4) |  |  | 94 |  |  | (4) |
Net income | $ | 158 |  |  | $ | 5,611 |  |  | $ | 37 |  |  | $ | 9,572 |
Company’s equity in income of unconsolidated entities | $ | 143 |  |  | $ | 3,933 |  |  | $ | 134 |  |  | $ | 6,611 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI https://asc.fasb.org/topic&trid=2196965 + Details
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