Note 8 - Variable Interest Entities

9 Months Ended

Sep. 30, 2016

8.	Variable Interest Entities

The Company owns a 50% interest in Myers & Sons Construction, L.P. (“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):

	September 30, 2016		December 31, 2015
Assets:
Current assets:
Cash and cash equivalents	$	2,074	$	3,226
Contracts receivable, including retainage		25,107		19,941
Other current assets		10,052		15,887
Total current assets		37,233		39,054
Property and equipment, net		10,279		10,080
Goodwill		1,501		1,501
Total assets	$	49,013	$	50,635
Liabilities:
Current liabilities:
Accounts payable	$	25,907	$	20,596
Other current liabilities		11,541		10,986
Total current liabilities		37,448		31,582
Long-term liabilities:
Other long-term liabilities		425		3,370
Total liabilities	$	37,873	$	34,952

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015

Revenues	$	50,739	$	43,444	$	121,649	$	134,035
Operating income		2,720		2,216		4,894		5,885
Net income attributable to Sterling common stockholders		1,357		1,108		2,440		2,941