Variable Interest Entities

Under GAAP, the Company must determine whether each entity, including joint ventures in which it participates, is a VIE. This determination focuses on identifying which owner or joint venture partner, if any, has the power to direct the activities of the entity and the obligation to absorb losses of the entity or the right to receive benefits from the entity disproportionate to its interest in the entity, which could have the effect of requiring the Company to consolidate the entity in which we have a noncontrolling variable interest. Where the Company has determined that it is appropriate to consolidate a VIE in which it owns a

50%

or less interest, 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,” unless the equity interest is deemed to be mandatorily redeemable. Refer to Note

regarding the Company’s mandatorily redeemable obligations.

The Company owns a

50%

interest in Myers, a construction limited partnership located in California. Because the Company exercises primary control over activities of the partnership and it is exposed to the majority of potential losses of the partnership, Myers has been determined to be a VIE and the Company has consolidated this partnership within the Company’s financial statements since the date of acquisition.

The financial information of Myers, which is included in our consolidated balance sheets and statements of operations, is as follows (amounts in thousands):

	As of December 31,
	2016		2015
Assets:
Current assets:
Cash and cash equivalents	$	9,655	$	3,226
Contracts receivable, including retainage		15,046		19,941
Other current assets		10,208		15,887
Total current assets		34,909		39,054
Property and equipment, net		9,824		10,080
Goodwill		1,501		1,501
Total assets	$	46,234	$	50,635
Liabilities:
Current liabilities:
Accounts payable	$	21,274	$	20,596
Other current liabilities		8,782		10,986
Total current liabilities		30,056		31,582
Long-term liabilities:
Other long-term liabilities		5,373		3,370
Total liabilities	$	35,429	$	34,952

	Year Ended December 31,
	2016		2015		2014
Revenues	$	156,202	$	175,691	$	144,837
Operating income		6,005		7,371		9,319
Net income attributable to Sterling common stockholders		2,993		3,681		4,657