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Note 4 - Subsidiaries and Joint Ventures with Noncontrolling Owners' Interests | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Noncontrolling Interest Disclosure [Text Block] |
4. | Subsidiaries and Joint Ventures with Noncontrolling Owners’ Interests
The Company is obligated to purchase its partners’ interests in two 50% owned subsidiaries, due to circumstances outlined in their agreements that are certain to occur. Therefore, the Company has classified these obligations as mandatorily redeemable and has recorded a liability in “Members’ interest subject to mandatory redemption and undistributed earnings” on the consolidated balance sheets. In addition, all undistributed earnings at the time of the noncontrolling owners’ death or permanent disability are also mandatorily payable. The liability consists of the following (amounts in thousands):
|  | As of December 31,
|  | 2016 |  | 2015
Members’ interest subject to mandatory redemption |  | $ | 40,000 |  |  | $ | 40,000 |
Net accumulated earnings |  |  | 5,230 |  |  |  | 10,438 |
Total liability |  | $ | 45,230 |  |  | $ | 50,438 |
Due to an amendment to one of these agreements on November 28, 2015, $18.8 million was reclassified to the liability account “Members’ interest subject to mandatory redemption and undistributed earnings” and reduced “Additional paid in capital” (“APIC”) on the Company’s consolidated balance sheets. This $18.8 million represented the portion of the revaluation of noncontrolling interest above the $7.4 million held as “Noncontrolling interest” in the consolidated balance sheet when the agreement was executed. According to GAAP, this reduction to APIC was treated similarly to a dividend to a preferred shareholder and reduced earnings per share attributable to Sterling common stockholders. Refer to Note 13. Earnings, subject to distribution by the Company, in these 50% owned subsidiaries for 2016, 2015 and 2014 were $8.9 million, $4.2 million and $2.1 million, respectively, and were recorded in “Other operating (expense) income, net” on the Company’s consolidated statements of operations. In 2015 and 2014, Myers’ portion of earnings subject to distribution by the Company was $0.5 million and zero, respectively, as the amendment to the agreement was not entered into until November 2015. Before the amendment, Myers’ portion of earnings was included in “Noncontrolling owners’ interests in earnings of subsidiaries and joint ventures.” Changes in Noncontrolling Interests The Company also participates in majority-owned joint ventures. For these joint ventures, the equity held by the remaining owners and their portions of net income (loss) are reflected in the balance sheet line item “Noncontrolling interests” in “Equity” and the statement of operations line item “Noncontrolling owners’ interests in earnings of subsidiaries and joint ventures,” respectively. See discussion above regarding the amendment of one of the Company’s joint venture agreements in 2015, which is reflected as the $7.4 million adjustment in the table below. The following table summarizes the changes in the noncontrolling owners’ interests in subsidiaries and consolidated joint ventures for the years ended December 31, 2014 through 2016 (amounts in thousands):
|  | Years Ended December 31,
|  | 2016 |  | 2015 |  | 2014
Balance, beginning of period |  | $ | (91 | ) |  | $ | 7,462 |  |  | $ | 4,097 |
Net income attributable to noncontrolling interest included in equity |  |  | 1,826 |  |  |  | 3,216 |  |  |  | 4,556 |
Change due to amendment |  |  | -- |  |  |  | (7,367 | ) |  |  | -- |
Distributions to noncontrolling interests owners |  |  | (1,079 | ) |  |  | (3,402 | ) |  |  | (1,191 | )
Balance, end of period |  | $ | 656 |  |  | $ | (91 | ) |  | $ | 7,462 |

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- Definition The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.31) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=64809438&loc=SL4573702-111684 + Details
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