Note 7 - Construction Joint Ventures

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

7. Construction Joint Ventures

The Company participates in various construction joint ventures. Generally, each construction joint venture is formed to construct a specific project and is jointly controlled by the joint venture partners. Refer to Note 6 of the Notes to Consolidated Financial Statements in the 2015 Form 10-K for further information about our joint ventures. Condensed combined financial amounts of joint ventures in which the Company has a noncontrolling interest and the Company’s share of such amounts which are included in the Company’s condensed consolidated financial statements are shown below (amounts in thousands):

	September 30, 2016			December 31, 2015
Total combined:
Current assets	$	26,893		$	17,312
Less current liabilities		(51,181	)		(49,371	)
Net assets	$	(24,288	)	$	(32,059	)
Backlog	$	125,850		$	35,113
Sterling’s noncontrolling interest in backlog	$	60,947		$	11,748
Sterling’s receivables from and equity in construction joint ventures	$	9,469		$	12,930

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Total combined:
Revenues	$	15,520	$	9,458	$	44,074	$	50,450
Income before tax		1,925		808		3,838		5,866
Sterling’s portion of noncontrolling interest:
Revenues	$	6,103	$	3,437	$	17,567	$	19,986
Income before tax		519		357		1,370		2,021

Approximately $61 million of the Company’s backlog at September 30, 2016 was attributable to projects being performed by joint ventures. The majority of this amount is attributable to the Company’s joint venture with Granite Construction Corporation, where the Company has a 49% interest.

The caption “Receivables from and equity in construction joint ventures” includes undistributed earnings and receivables owed to the Company. Undistributed earnings are typically released to the joint venture partners after the customer accepts the project as complete and the warranty period, if any, has passed.