The Company participates in joint ventures to bid, negotiate and complete specific projects. The Company is required to consolidate these joint ventures if it holds the majority voting interest or if the Company meets the criteria under the consolidation model, as described below.

The Company performs an analysis to determine whether its variable interests give the Company a controlling financial interest in a Variable Interest Entity (“VIE”) for which the Company is the primary beneficiary and should, therefore, be consolidated. Such analysis requires the Company to assess whether it has the power to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

The Company analyzed all of its joint ventures and classified them into two groups: (1) joint ventures that must be consolidated because they are either not VIEs and the Company holds the majority voting interest, or because they are VIEs and the Company is the primary beneficiary; and (2) joint ventures that do not need to be consolidated because they are either not VIEs and the Company holds a minority voting interest, or because they are VIEs and the Company is not the primary beneficiary.

Many of the Company’s joint venture agreements provide for capital calls to fund operations, as necessary; however, such funding is infrequent and is not anticipated to be material.

Letters of credit outstanding described in “Note 10 – Debt and Credit Facilities” that relate to project ventures are $105.9 million and $106.8 million at March 31, 2023 and December 31, 2022.

In the table below, aggregated financial information relating to the Company’s joint ventures is provided because their nature, risk and reward characteristics are similar. None of the Company’s current joint ventures that meet the characteristics of a VIE are individually significant to the consolidated financial statements.

The following represents financial information for consolidated joint ventures included in the consolidated financial statements (in thousands):


	March 31, 2023		December 31, 2022
Current assets	$	331,742	$	289,837
Noncurrent assets		10,693		9,961
Total assets		342,435		299,798
Current liabilities		216,682		194,701
Noncurrent liabilities		3,871		3,763
Total liabilities		220,553		198,464
Total joint venture equity	$	121,882	$	101,334


	Three Months Ended
	March 31, 2023		March 31, 2022
Revenue	$	161,484	$	95,534
Costs		141,598		88,842
Net income	$	19,886	$	6,692
Net income attributable to noncontrolling interests	$	9,723	$	3,176

The assets of the consolidated joint ventures are restricted for use only by the particular joint venture and are not available for the Company’s general operations.

The Company accounts for its unconsolidated joint ventures using the equity method of accounting. Under this method, the Company recognizes its proportionate share of the net earnings of these joint ventures as “Equity in (losses) earnings of unconsolidated joint ventures” in the consolidated statements of income. The Company’s maximum exposure to loss as a result of its investments in unconsolidated joint ventures is typically limited to the aggregate of the carrying value of the investment and future funding commitments.

The following represents the financial information of the Company’s unconsolidated joint ventures as presented in their unaudited financial statements (in thousands):


	March 31, 2023		December 31, 2022
Current assets	$	1,291,910	$	1,610,246
Noncurrent assets		493,501		491,658
Total assets		1,785,411		2,101,904
Current liabilities		848,105		1,255,297
Noncurrent liabilities		540,967		468,056
Total liabilities		1,389,072		1,723,353
Total joint venture equity	$	396,339	$	378,551
Investments in and advances to unconsolidated joint ventures	$	107,416	$	107,425


	Three Months Ended
	March 31, 2023			March 31, 2022
Revenue	$	349,157		$	384,581
Costs		359,395			373,286
Net income	$	(10,238	)	$	11,295
Equity in (losses) earnings of unconsolidated joint ventures	$	(5,840	)	$	5,598

The Company had net contributions to its unconsolidated joint ventures for the three months ended March 31, 2023 of $4.8 million and received net distributions from its unconsolidated joint ventures for the three months ended March 31, 2022 of $2.8 million.

For the three months ended March 31, 2023, the Company recorded a $6.8 million adjustment on an unconsolidated joint venture in the Critical Infrastructure segment from lower margin change orders resulting in
profits being delayed to future periods. For the three months ended March 31, 2023, this adjustment decreased operating and net income by $6.8 million and $5.1 million, respectively, and decreased diluted earnings per share by $0.04.