Note 8 - Variable Interest Entities

3 Months Ended

Mar. 31, 2016

Variable Interest Entities

The Company owns a 50% interest in Myers, of which it is the primary beneficiary, and has consolidated Myers into the Company’s financial statements. Because the Company exercises primary control over activities of the partnership and it is exposed to the majority of potential losses of the partnership, the Company has consolidated Myers within the Company’s financial statements since August 1, 2011, the date of acquisition. Refer to Note 3 of the Notes to Consolidated Financial Statements included in the 2015 Form 10-K for additional information on the acquisition of this limited partnership.

The condensed financial information of Myers, which is reflected in the Company’s condensed consolidated balance sheets and statements of operations, is as follows (amounts in thousands):

	March 31, 2016		December 31, 2015
Assets:
Current assets:
Cash and cash equivalents	$	5,348	$	3,226
Contracts receivable, including retainage		18,848		19,941
Other current assets		6,222		15,887
Total current assets		30,418		39,054
Property and equipment, net		10,249		10,080
Goodwill		1,501		1,501
Total assets	$	42,168	$	50,635
Liabilities:
Current liabilities:
Accounts payable	$	16,499	$	20,596
Other current liabilities		11,705		10,986
Total current liabilities		28,204		31,582
Long-term liabilities:
Other long-term liabilities		351		3,370
Total liabilities	$	28,555	$	34,952

	Three Months Ended March 31,
	2016		2015

Revenues	$	26,943	$	36,268
Operating income		194		582
Net income attributable to Sterling common stockholders		94		290