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Consolidated 50% Owned Subsidiaries | 3 Months Ended
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Mar. 31, 2019
Noncontrolling Interest [Abstract] |
Consolidated 50% Owned Subsidiaries |
4. | CONSOLIDATED 50% OWNED SUBSIDIARIES
The Company has a 50% interest in two subsidiaries (Myers and RHB); both subsidiaries have individual provisions which obligate the Company to purchase each partner’s 50% interests for $20,000 ($40,000 in the aggregate), due to circumstances outlined in the partner agreements that are certain to occur. Therefore, the Company has consolidated these two entities and classified these obligations as mandatorily redeemable and has recorded a liability in “Members’ interest subject to mandatory redemption and undistributed earnings” on the Condensed Consolidated Balance Sheets. In addition, all undistributed earnings at the time of the noncontrolling owners’ death or permanent disability are also mandatorily payable. In the event of either Mr. Buenting’s or Mr. Myers’s death, the Company purchased two separate $20,000 death and permanent total disability insurance policies to mitigate the Company’s cash draw if such events were to occur. The liability consists of the following:
| March 31, 2019 |  | December 31, 2018
Members’ interest subject to mandatory redemption | $ | 40,000 |  |  | $ | 40,000 |
Net accumulated earnings | 7,132 |  |  | 9,343 |
Total liability | $ | 47,132 |  |  | $ | 49,343 |
Fifty percent of the earnings of these consolidated 50% owned subsidiaries for the three months ended March 31, 2019 and March 31, 2018 were approximately $1,300, and $600, respectively. These amounts were included in “Other operating expense, net” on the Company’s Condensed Consolidated Statements of Operations. The Company must determine whether any of its entities, including these two 50% owned subsidiaries, in which it participates, is a variable interest entity (“VIE”). The Company determined Myers is a VIE, as Sterling is the primary beneficiary, as pursuant to the terms of the Myers Operating Agreement, the Company is exposed to the majority of potential losses of the partnership. The following tables present the condensed financial information of Myers, which is reflected in the Company’s Condensed Consolidated Balance Sheets and Statements of Operations:
| March 31, 2019 |  | December 31, 2018
Assets |  |  |  |  |
Current assets: |  |  |  |  |
Cash and cash equivalents | $ | 3,603 |  |  | $ | 8,745 |
Receivables, including retainage | 24,900 |  |  | 24,109 |
Other current assets | 13,679 |  |  | 14,533 |
Total current assets | 42,182 |  |  | 47,387 |
Property and equipment, net | 6,818 |  |  | 7,219 |
Operating lease right-of-use assets | 3,297 |  |  | — |
Goodwill | 1,501 |  |  | 1,501 |
Total assets | $ | 53,798 |  |  | $ | 56,107 |
Liabilities |  |  |
Current liabilities: |  |  |
Accounts payable | $ | 19,588 |  |  | $ | 22,211 |
Other current liabilities | 11,032 |  |  | 9,811 |
Total current liabilities | 30,620 |  |  | 32,022 |
Other long-term liabilities | 1,854 |  |  | 1,976 |
Total liabilities | $ | 32,474 |  |  | $ | 33,998 |

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- References No definition available. + Details
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- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -URI http://asc.fasb.org/topic&trid=2197479 + Details
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