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Variable Interest Entities
3 Months Ended
Mar. 31, 2012
Variable Interest Entities [Abstract]  
Variable Interest Entities

Note 16—Variable Interest Entities

At first quarter-end 2012, we are the primary beneficiary of two VIEs that we consolidate. We have provided the majority of equity to these VIEs, which absent our contributions or advances do not have sufficient equity to fund their operations. We have the authority to approve project budgets and the issuance of additional debt. At first quarter-end 2012, our consolidated balance sheet includes $15,687,000 in assets, principally real estate, and $2,920,000 in liabilities related to these two VIEs. In first quarter 2012, we contributed or advanced $559,000 to these VIEs.

Also at first quarter-end 2012, we are not the primary beneficiary of three VIEs that we account for using the equity method. The unrelated managing partners oversee day-to-day operations and guarantee some of the debt of the VIEs while we have the authority to approve project budgets and the issuance of additional debt. Although some of the debt is guaranteed by the managing partners, we may under certain circumstances elect or be required to provide additional funds to these VIEs. At first quarter-end 2012, these three VIEs have total assets of $48,967,000, substantially all of which represent developed and undeveloped real estate and total liabilities of $79,335,000, which includes $63,463,000 of borrowings classified as current maturities. These amounts are included in other ventures in the combined summarized balance sheet information for ventures accounted for using the equity method in Note 7. At first quarter-end 2012, our investment in these three VIEs is $1,884,000 and is included in investment in unconsolidated ventures. In first three months 2012, we contributed or advanced $37,000 to these VIEs. Our maximum exposure to loss related to these VIEs is estimated at $34,695,000, which exceeds our investment as we have a nominal general partner interest in two of these VIEs and could be held responsible for their liabilities. The maximum exposure to loss represents the maximum loss that we could be required to recognize assuming all the ventures’ assets (principally real estate) are worthless, without consideration of the probability of a loss or of any actions we may take to mitigate any such loss.