10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended June 30, 2013

OR

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ___________ to ___________
	Commission File Number: 1-12911

GRANITE CONSTRUCTION INCORPORATED

State of Incorporation:	I.R.S. Employer Identification Number:
Delaware	77-0239383

Address of principal executive offices:

585 W. Beach Street

Watsonville, California 95076

(831) 724-1011

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. xYes o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). xYes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer o Non-accelerated filer o Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes x No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of July 22, 2013.

Class	Outstanding
Common Stock, $0.01 par value	38,874,400 shares

Index

PART I. FINANCIAL INFORMATION
	Item 1.	Financial Statements (unaudited)
		Condensed Consolidated Balance Sheets as of June 30, 2013, December 31, 2012 and June 30, 2012
		Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2013 and 2012
		Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2013 and 2012
		Notes to the Condensed Consolidated Financial Statements
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk
	Item 4.	Controls and Procedures
PART II. OTHER INFORMATION
	Item 1.	Legal Proceedings
	Item 1A.	Risk Factors
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds
	Item 3.	Defaults Upon Senior Securities
	Item 4.	Mine Safety Disclosures
	Item 5.	Other Information
	Item 6.	Exhibits
SIGNATURES
EXHIBIT 31.1
EXHIBIT 31.2
EXHIBIT 32
EXHIBIT 95
EXHIBIT 101.INS
EXHIBIT 101.SCH
EXHIBIT 101.CAL
EXHIBIT 101.DEF
EXHIBIT 101.LAB
EXHIBIT 101.PRE

2

PARTI.FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

GRANITE CONSTRUCTION INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - in thousands, except share and per share data)
	June 30, 2013		December 31, 2012		June 30, 2012
ASSETS
Current assets
Cash and cash equivalents ($63,806, $105,865 and $67,685 related to consolidated construction joint ventures (“CCJVs”))	$	247,833	$	321,990	$	237,951
Short-term marketable securities	21,271		56,088		43,260
Receivables, net ($59,807, $43,902 and $26,903 related to CCJVs)	336,418		325,529		272,562
Costs and estimated earnings in excess of billings	63,341		34,116		69,688
Inventories	68,905		59,785		67,503
Real estate held for development and sale	50,697		50,223		57,367
Deferred income taxes	36,687		36,687		38,571
Equity in construction joint ventures	148,727		105,805		107,821
Other current assets	35,651		31,834		20,436
Total current assets	1,009,530		1,022,057		915,159
Property and equipment, net ($34,891, $41,114 and $6,919 related to CCJVs)	471,265		481,478		439,664
Long-term marketable securities	55,225		55,342		45,800
Investments in affiliates	31,421		30,799		28,521
Goodwill	53,598		55,419		9,900
Other noncurrent assets	80,365		84,392		68,603
Total assets	$	1,701,404	$	1,729,487	$	1,507,647
LIABILITIES AND EQUITY
Current liabilities
Current maturities of long-term debt	$	20	$	8,353	$	9,102
Current maturities of non-recourse debt	2,147		10,707		16,328
Accounts payable ($18,297, $34,536 and $31,135 related to CCJVs)	188,124		202,541		186,290
Billings in excess of costs and estimated earnings ($72,094, $72,490 and $17,979 related to CCJVs)	144,044		139,692		75,629
Accrued expenses and other current liabilities ($9,153, $8,312 and $3,027 related to CCJVs)	200,521		169,979		155,322
Total current liabilities	534,856		531,272		442,671
Long-term debt	270,148		270,148		200,168
Long-term non-recourse debt	7,354		922		4,641
Other long-term liabilities	46,817		47,124		47,393
Deferred income taxes	8,055		8,163		3,644
Commitments and contingencies
Equity
Preferred stock, $0.01 par value, authorized 3,000,000 shares, none outstanding	—		—		—
Common stock, $0.01 par value, authorized 150,000,000 shares; issued and outstanding 38,852,463 shares as of June 30, 2013, 38,730,665 shares as of December 31, 2012 and 38,684,540 shares as of June 30, 2012	389		387		387
Additional paid-in capital	121,368		117,422		112,815
Retained earnings	682,610		712,144		667,278
Total Granite Construction Incorporated shareholders’ equity	804,367		829,953		780,480
Noncontrolling interests	29,807		41,905		28,650
Total equity	834,174		871,858		809,130
Total liabilities and equity	$	1,701,404	$	1,729,487	$	1,507,647

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

GRANITE CONSTRUCTION INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - in thousands, except per share data)
	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Revenue
Construction	$	308,602		$	245,113		$	485,720		$	363,059
Large Project Construction	181,371			228,799			353,086			392,727
Construction Materials	60,185			63,349			89,935			88,972
Real Estate	4			2,354			125			5,017
Total revenue	550,162			539,615			928,866			849,775
Cost of revenue
Construction	283,448			227,152			447,367			336,518
Large Project Construction	159,283			200,560			308,278			342,239
Construction Materials	56,231			58,349			91,955			89,922
Real Estate	3			1,638			13			4,244
Total cost of revenue	498,965			487,699			847,613			772,923
Gross profit	51,197			51,916			81,253			76,852
Selling, general and administrative expenses	46,454			40,806			104,112			85,882
Gain on restructuring	—			—			497			1,888
Gain on sales of property and equipment	3,306			2,954			4,394			4,871
Operating income (loss)	8,049			14,064			(17,968		)	(2,271		)
Other income (expense)
Interest income	380			611			508			1,655
Interest expense	(3,700		)	(2,827		)	(7,345		)	(6,009		)
Equity in income (loss) of affiliates	698			(484		)	275			(1,101		)
Other (expense) income, net	(495		)	(5,018		)	608			1,853
Total other expense	(3,117		)	(7,718		)	(5,954		)	(3,602		)
Income (loss) before provision for (benefit from) income taxes	4,932			6,346			(23,922		)	(5,873		)
Provision for (benefit from) income taxes	1,766			1,859			(7,261		)	(1,673		)
Net income (loss)	3,166			4,487			(16,661		)	(4,200		)
Amount attributable to noncontrolling interests	(448		)	(2,538		)	(2,603		)	(5,624		)
Net income (loss) attributable to Granite Construction Incorporated	$	2,718		$	1,949		$	(19,264	)	$	(9,824	)
Net income (loss) per share attributable to common shareholders (see Notes 12 and 13)
Basic	$	0.07		$	0.05		$	(0.50	)	$	(0.26	)
Diluted	$	0.07		$	0.05		$	(0.50	)	$	(0.26	)
Weighted average shares of common stock
Basic	38,829			38,471			38,720			38,368
Diluted	39,769			39,151			38,720			38,368
Dividends per common share	$	0.13		$	0.13		$	0.26		$	0.26

 The accompanying notes are an integral part of these condensed consolidated financial statements.

4

GRANITE CONSTRUCTION INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - in thousands)
Six Months Ended June 30,	2013			2012
Operating activities
Net loss	$	(16,661	)	$	(4,200	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, depletion and amortization	33,988			29,573
Non-cash restructuring, net	(497		)	(1,888		)
Other non-cash impairment charges	—			2,752
Gain on sales of property and equipment	(4,394		)	(4,871		)
Stock-based compensation	8,101			6,492
Changes in assets and liabilities, net of the effects of acquisition:
Receivables	(9,176		)	(20,771		)
Costs and estimated earnings in excess of billings, net	(24,873		)	(47,201		)
Inventories	(9,120		)	(16,528		)
Equity in construction joint ventures, including performance guarantees	(42,336		)	(6,792		)
Other assets, net	(5,957		)	15,753
Accounts payable	(10,548		)	27,632
Accrued expenses and other current liabilities, net, including performance guarantees	29,825			(14,575		)
Net cash used in operating activities	(51,648		)	(34,624		)
Investing activities
Purchases of marketable securities	(14,975		)	(39,945		)
Maturities of marketable securities	43,000			65,100
Proceeds from sale of marketable securities	5,000			35,000
Additions to property and equipment	(19,422		)	(19,855		)
Proceeds from sales of property and equipment	8,481			6,078
Payment of Kenny post-closing adjustments	(4,621		)	—
Other investing activities, net	163			(978		)
Net cash provided by investing activities	17,626			45,400
Financing activities
Long-term debt principal payments	(10,594		)	(10,834		)
Cash dividends paid	(10,078		)	(10,050		)
Purchases of common stock	(5,022		)	(4,054		)
Contributions from noncontrolling partners	6,001			—
Distributions to noncontrolling partners	(21,142		)	(5,440		)
Other financing activities, net	700			563
Net cash used in financing activities	(40,135		)	(29,815		)
Decrease in cash and cash equivalents	(74,157		)	(19,039		)
Cash and cash equivalents at beginning of period	321,990			256,990
Cash and cash equivalents at end of period	$	247,833		$	237,951

Supplementary Information
Cash paid during the period for:
Interest	$	7,339	$	7,158
Income taxes	2,006		771
Non-cash investing and financing activities:
Restricted stock units issued, net of forfeitures	$	14,862	$	11,417
Accrued cash dividends	5,051		5,029
Debt payments out of escrow from sale of assets	—		1,109
Debt extinguishment from joint venture interest transfer	—		9,115
Debt payment from refinancing	—		1,150

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

The condensed consolidated financial statements included herein have been prepared by Granite Construction Incorporated (“we,” “us,” “our,” “Company” or “Granite”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2012. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted, although we believe the disclosures which are made are adequate to make the information presented not misleading. Further, the condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary to state fairly our financial position at June 30, 2013 and 2012 and the results of our operations and cash flows for the periods presented. The December 31, 2012 condensed consolidated balance sheet data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP.

We prepared the accompanying condensed consolidated financial statements on the same basis as our annual consolidated financial statements except for the adoption of the following new accounting standards in the first quarter of 2013:

• In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, Balance Sheet (Topic 210):Disclosures about Offsetting Assets and Liabilities and in January 2013, issued ASU No. 2013-01, Balance Sheet (Topic 210):Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. These ASUs require companies to disclose both gross and net information about financial instruments that have been offset on the balance sheet. These ASUs became effective for our quarter ended March 31, 2013 and did not impact our condensed consolidated financial statements.

• In July 2012, the FASB issued ASU No. 2012-02, Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. This ASU gives companies the option to first assess qualitative factors to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If it is determined that it is more likely than not the indefinite-lived intangible asset is impaired, a quantitative impairment test is required. However, if it is concluded otherwise, the quantitative test is not necessary. This ASU became effective for our quarter ended March 31, 2013. No impairment analysis was necessary in relation to our indefinite lived intangible assets during the six months ended June 30, 2013; therefore, the adoption of this ASU had no impact to our condensed consolidated financial statements.

• In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income in certain circumstances. This ASU was effective commencing with our quarter ended March 31, 2013. For all periods presented comprehensive loss was equal to net loss; therefore, the adoption of this ASU did not have an impact on our condensed consolidated financial statements.

Our operations are typically affected by weather conditions during the first and fourth quarters of our fiscal year which may alter our construction schedules and can create variability in our revenues and profitability. Therefore, the results of operations for the three and six months ended June 30, 2013 are not necessarily indicative of the results to be expected for the full year. 

6

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2. Revisions in Estimates

Our profit recognition related to construction contracts is based on estimates of costs to complete each project. These estimates can vary in the normal course of business as projects progress and uncertainties are resolved. We do not recognize revenue on contract change orders or claims until we have a signed agreement; however, we do recognize costs as incurred and revisions to estimated total costs as soon as the obligation to perform is determined. Approved change orders and claims, as well as changes in related estimates of costs to complete, are considered revisions in estimates. We use the cumulative catch-up method applicable to construction contract accounting to account for revisions in estimates. Under this method, revisions in estimates are accounted for in their entirety in the period of change. As of June 30, 2013, we had no revisions in estimates that are reasonably certain to impact future periods.

Construction

The net changes in project profitability from revisions in estimates, both increases and decreases, that individually had an impact of $1.0 million or more on gross profit were net decreases of $0.5 million and $0.3 million for the three and six months ended June 30, 2013, respectively. The net changes for the three and six months ended June 30, 2012 were net decreases of $1.6 million and $0.8 million, respectively. The projects are summarized as follows:

Increases

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)			2013		2012		2013		2012
Number of projects with upward estimate changes			1		1		2		3
Range of increase in gross profit from each project, net		$	1.6	$	1.4	$	1.4 - 1.7	$	1.1 - 3.2
Increase to project profitability		$	1.6	$	1.4	$	3.1	$	5.4

The increases during the three and six months ended June 30, 2013 were due to owner directed scope changes. The increases during the three and six months ended June 30, 2012 were due to production at a higher rate than anticipated and settlement of outstanding issues with contract owners.

Decreases

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)			2013		2012		2013		2012
Number of projects with downward estimate changes			1		2		2		2
Range of reduction in gross profit from each project, net		$	2.1	$	1.1 - 1.9	$	1.0 - 2.4	$	1.4 - 4.8
Decrease to project profitability		$	2.1	$	3.0	$	3.4	$	6.2

The decreases during the three and six months ended June 30, 2013 and 2012 were due to lower productivity than originally anticipated.

7

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Large Project Construction

The net changes in project profitability from revisions in estimates, both increases and decreases, that individually had an impact of $1.0 million or more on gross profit were net increases of $8.7 million and $17.9 million for the three and six months ended June 30, 2013, respectively. The net changes for the three and six months ended June 30, 2012 were net increases of $9.3 million and $13.7 million, respectively. Amounts attributable to noncontrolling interests were $0.4 million and $1.4 million of the net increases for the three and six months ended June 30, 2013 and were $0.4 million and $0.9 million of the net increases for the three and six months ended June 30, 2012, respectively. The projects are summarized as follows:

Increases

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)			2013		2012		2013		2012
Number of projects with upward estimate changes			5		6		5		6
Range of increase in gross profit from each project, net		$	1.3 - 8.3	$	1.2 - 3.6	$	1.5 - 16.1	$	1.4 - 5.2
Increase to project profitability		$	15.8	$	14.9	$	31.9	$	23.1

The increases during the three and six months ended June 30, 2013 were due to production at a higher rate than anticipated, resolution of project uncertainties and owner directed scope changes. The increases during the three and six months ended June 30, 2012 were due to owner directed scope changes and production at a higher rate than anticipated.

Decreases

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)			2013		2012		2013		2012
Number of projects with downward estimate changes			2		1		2		2
Range of reduction in gross profit from each project, net		$	2.8 - 4.3	$	5.6	$	5.2 - 8.8	$	1.5 - 7.9
Decrease to project profitability		$	7.1	$	5.6	$	14.0	$	9.4

The downward estimate changes during the three and six months ended June 30, 2013 and 2012 were due to lower productivity than anticipated.

8

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3. Marketable Securities

All marketable securities were classified as held-to-maturity for the dates presented and the carrying amounts of held-to-maturity securities were as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
U.S. Government and agency obligations	$	613	$	7,375	$	20,107
Commercial paper	14,992		34,966		14,967
Municipal bonds	5,666		8,738		3,065
Corporate bonds	—		5,009		5,121
Total short-term marketable securities	21,271		56,088		43,260
U.S. Government and agency obligations	55,225		55,342		40,041
Municipal bonds	—		—		5,759
Total long-term marketable securities	55,225		55,342		45,800
Total marketable securities	$	76,496	$	111,430	$	89,060

Scheduled maturities of held-to-maturity investments were as follows (in thousands):

June 30, 2013
Due within one year	$	21,271
Due in one to five years	55,225
Total	$	76,496

9

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

4. Fair Value Measurement

Fair value accounting standards describe three levels that may be used to measure fair value:

• Level 1 - Quoted prices in active markets for identical assets or liabilities.

• Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following tables summarize assets and liabilities measured at fair value in the condensed consolidated balance sheets on a recurring basis for each of the fair value levels:

June 30, 2013	Fair Value Measurement at Reporting Date Using
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	144,605	$	—	$	—	$	144,605
Total assets	$	144,605	$	—	$	—	$	144,605

December 31, 2012	Fair Value Measurement at Reporting Date Using
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	201,542	$	—	$	—	$	201,542
Held-to-maturity commercial paper	5,000		—		—		5,000
Total assets	$	206,542	$	—	$	—	$	206,542

June 30, 2012	Fair Value Measurement at Reporting Date Using
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	167,427	$	—	$	—	$	167,427
Held-to-maturity commercial paper	4,997		—		—		4,997
Total assets	$	172,424	$	—	$	—	$	172,424

A reconciliation of cash equivalents to consolidated cash and cash equivalents is as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Cash equivalents	$	144,605	$	206,542	$	172,424
Cash	103,228		115,448		65,527
Total cash and cash equivalents	$	247,833	$	321,990	$	237,951

10

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The carrying values and estimated fair values of our financial instruments that are not required to be measured at fair value in the condensed consolidated balance sheets are as follows: 

		June 30, 2013				December 31, 2012				June 30, 2012
(in thousands)	Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Held-to-maturity marketable securities1	Level 1	$	76,496	$	76,100	$	111,430	$	111,525	$	89,060	$	89,239
Liabilities (including current maturities):
Senior notes payable2	Level 3	$	200,000	$	227,902	$	208,333	$	243,118	$	208,333	$	239,443
Credit Agreement loan2	Level 3	70,000		69,321		70,000		70,444		—		—

¹Held-to-maturity marketable securities are periodically assessed for other-than-temporary impairment.

²The fair values of the senior notes payable and Credit Agreement loan are based on borrowing rates available to us for long-term loans with similar terms, average maturities, and credit risk.

The carrying values of receivables, other current assets, and accrued expenses and other current liabilities approximate their fair values due to the short-term nature of these instruments. In addition, the fair value of non-recourse debt measured using Level 3 inputs approximates its carrying value due to its relative short-term nature and competitive interest rates. During the three and six months ended June 30, 2013 and 2012, we did not record any significant fair value adjustments related to nonfinancial assets and liabilities measured at fair value on a nonrecurring basis.

5. Receivables, net

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Construction contracts:
Completed and in progress	$	207,488	$	195,244	$	146,509
Retentions	76,288		93,800		66,265
Total construction contracts	283,776		289,044		212,774
Construction material sales	43,535		26,918		50,205
Other	11,700		12,316		12,624
Total gross receivables	339,011		328,278		275,603
Less: allowance for doubtful accounts	2,593		2,749		3,041
Total net receivables	$	336,418	$	325,529	$	272,562

Receivables include amounts billed and billable to clients for services provided and/or according to contract terms as of the end of the applicable period and do not bear interest. Certain contracts include provisions that permit us to submit invoices in advance of providing services and, to the extent not collected, they are included in receivables. Other contracts include provisions that permit us to submit invoices based on the passage of time, achievement of milestones or completion of the project. To the extent the related costs have not been billed, the contract balance is included in costs and estimated earnings in excess of billings on the condensed consolidated balance sheets.

Certain construction contracts include retainage provisions. The balances billed but not paid by customers pursuant to these provisions in general become due upon completion and acceptance of the contract by the owners. As of June 30, 2013, substantially all of the retentions receivable are expected to be collected within one year. Included in other receivables at June 30, 2013, December 31, 2012 and June 30, 2012 were items such as notes receivable, fuel tax refunds and income tax refunds. No such receivables individually exceeded 10% of total net receivables at any of these dates.

11

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Financing receivables consisted of long-term notes receivable and retentions receivable. As of June 30, 2013, December 31, 2012 and June 30, 2012 long-term notes receivable outstanding were $1.6 million, $2.0 million and $1.9 million, respectively, and primarily related to loans made to employees and were included in other noncurrent assets in our condensed consolidated balance sheets.

We segregate our retention receivables into two categories: escrow and non-escrow. The balances in each category were as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Escrow	$	31,892	$	41,494	$	42,421
Non-escrow	44,396		52,306		23,844
Total retention receivables	$	76,288	$	93,800	$	66,265

The escrow receivables include amounts due to Granite which have been deposited into an escrow account and bear interest. Typically, escrow retention receivables are held until work on a project is complete and has been accepted by the owner who then releases those funds, along with accrued interest, to us. There is minimal risk of not collecting on these amounts.

Non-escrow retention receivables are amounts that the project owner has contractually withheld that are to be paid upon owner acceptance of contract completion. We evaluate our non-escrow retention receivables for collectability using certain customer information that includes the following:

• Federal - includes federal agencies such as the Bureau of Reclamation, the Army Corp of Engineers, and the Bureau of Indian Affairs. The obligations of these agencies are backed by the federal government. Consequently, there is minimal risk of not collecting the amounts we are entitled to receive.    

• State - primarily state departments of transportation. The risk of not collecting on these accounts is low; however, we have experienced occasional delays in payment as states have struggled with budget issues.

• Local - these customers include local agencies such as cities, counties and other local municipal agencies. The risk of not collecting on these accounts is low; however, we have experienced occasional delays in payment as some local agencies have struggled to deal with budget issues.       

• Private - includes individuals, developers and corporations. The majority of our collection risk is associated with these customers. We perform ongoing credit evaluations of our customers and generally do not require collateral, although the law provides us certain remedies, including, but not limited to, the ability to file mechanics’ liens on real property improved for private customers in the event of non-payment by such customers.

The following table summarizes the amount of our non-escrow retention receivables within each category:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Federal	$	3,325	$	3,234	$	2,464
State	2,757		2,971		4,626
Local	32,500		31,559		9,944
Private	5,814		14,542		6,810
Total	$	44,396	$	52,306	$	23,844

12

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

We regularly review our accounts receivable, including past due amounts, to determine their probability of collection. If it is probable that an amount is uncollectible, it is charged to bad debt expense and a corresponding reserve is established in allowance for doubtful accounts. If it is deemed certain that an amount is uncollectible, the amount is written off. Based on contract terms, non-escrow retention receivables are typically due within 60 days of owner acceptance of contract completion. We consider retention amounts beyond 60 days of owner acceptance of contract completion to be past due. The following tables present the aging of our non-escrow retention receivables (in thousands):

June 30, 2013	Current		1 - 90 Days Past Due		Over 90 Days Past Due		Total
Federal	$	2,551	$	236	$	538	$	3,325
State	1,327		619		811		2,757
Local	25,362		1,496		5,642		32,500
Private	4,571		634		609		5,814
Total	$	33,811	$	2,985	$	7,600	$	44,396

December 31, 2012	Current		1 - 90 Days Past Due		Over 90 Days Past Due		Total
Federal	$	3,116	$	72	$	46	$	3,234
State	2,148		502		321		2,971
Local	25,743		1,082		4,734		31,559
Private	13,310		716		516		14,542
Total	$	44,317	$	2,372	$	5,617	$	52,306

June 30, 2012	Current		1 - 90 Days Past Due		Over 90 Days Past Due		Total
Federal	$	1,746	$	—	$	718	$	2,464
State	3,552		208		866		4,626
Local	7,330		1,326		1,288		9,944
Private	6,363		92		355		6,810
Total	$	18,991	$	1,626	$	3,227	$	23,844

Federal, state and local agencies generally require several approvals to release payments, and these approvals often take over 90 days past contractual due dates to obtain. Amounts past due from government agencies primarily result from delays caused by paperwork processing and obtaining proper agency approvals rather than lack of funds. We generally receive payment within one year of owner acceptance. As of June 30, 2013, December 31, 2012 and June 30, 2012, our allowance for doubtful accounts contained no material provision related to non-escrow retention receivables as we determined there were no significant collectibility issues.

13

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

6. Construction and Line Item Joint Ventures

We participate in various construction joint venture partnerships and two limited liability company. We also participate in various “line item” joint venture agreements under which each partner is responsible for performing certain discrete items of the total scope of contracted work.

Our agreements with our joint venture partners for both construction joint ventures and line item joint ventures provide that each party will pay for any losses it is responsible for under the joint venture agreement. Circumstances that could lead to a loss under our joint venture arrangements beyond our stated ownership interest include the failure of a partner to contribute additional funds to the venture in the event the project incurs a loss or additional costs that we could incur should a partner fail to provide the services and resources that it had committed to provide in the joint venture agreement. Due to the joint and several nature of the obligations under our joint venture arrangements, if one of our joint venture partners fails to perform, we and the remaining joint venture partners would be responsible for performance of the outstanding work.

At June 30, 2013, there was approximately $5.1 billion of construction revenue to be recognized on unconsolidated and line item construction joint venture contracts of which $1.4 billion represented our share and the remaining $3.7 billion represented our partners’ share. We are not able to estimate amounts that may be required beyond the remaining cost of the work to be performed. These costs could be offset by billings to the customer or by proceeds from our partners’ corporate and/or other guarantees.

Construction Joint Ventures

Generally, each construction joint venture is formed to complete a specific contract and is jointly controlled by the joint venture partners. The joint venture agreements typically provide that our interests in any profits and assets, and our respective share in any losses and liabilities resulting from the performance of the contracts, are limited to our stated percentage interest in the project. We have no significant commitments beyond completion of the contracts. Under our contractual arrangements, we provide capital to these joint ventures in return for an ownership interest. In addition, partners dedicate resources to the ventures necessary to complete the contracts and are reimbursed for their cost. The operational risks of each construction joint venture are passed along to the joint venture partners. As we absorb our share of these risks, our investment in each venture is exposed to potential losses.

We have determined that certain of these joint ventures are consolidated because they are variable interest entities (“VIEs”) and we are the primary beneficiary, or because they are not VIEs and we hold the majority voting interest. The factors we consider in determining whether we are a VIE’s primary beneficiary include the decision authority of each partner, which partner manages the day-to-day operations of the project and the amount of our equity investment in relation to that of our partners. Based on our initial primary beneficiary analysis for one construction joint venture, we determined that decision making responsibility is shared between the venture partners. Therefore, this joint venture did not have an identifiable primary beneficiary partner and we continue to report the pro rata results. All other joint ventures were assigned one primary beneficiary partner.

We continually evaluate whether there are changes in the status of the VIE’s or changes to the primary beneficiary designation of the VIE. Based on our assessments during the six months ended June 30, 2013 and 2012, we determined no change was required to the accounting for existing construction joint ventures.

14

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Consolidated Construction Joint Ventures

The carrying amounts and classification of assets and liabilities of construction joint ventures we are required to consolidate are included in our condensed consolidated financial statements as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Cash and cash equivalents1	$	63,806	$	105,865	$	67,685
Receivables, net	59,807		43,902		26,903
Other current assets	3,592		4,008		2,125
Total current assets	127,205		153,775		96,713
Property and equipment, net	34,891		41,114		6,919
Other noncurrent assets	1,253		1,700		—
Total assets2	$	163,349	$	196,589	$	103,632
Accounts payable	$	18,297	$	34,536	$	31,135
Billings in excess of costs and estimated earnings1	72,094		72,490		17,979
Accrued expenses and other current liabilities	9,153		8,312		3,027
Total liabilities2	$	99,544	$	115,338	$	52,141

¹The volume and stage of completion of contracts from our consolidated construction joint ventures may cause fluctuations in cash and cash equivalents, as well as billings in excess of costs and estimated earnings between periods.

²The assets and liabilities of each joint venture relate solely to that joint venture. The decision to distribute joint venture cash and cash equivalents and assets must generally be made jointly by all of the partners and, accordingly, these cash and cash equivalents and assets generally are not available for the working capital needs of Granite until distributed.

At June 30, 2013, we were engaged in four active consolidated construction joint venture projects with total contract values ranging from $0.4 million to $336.9 million. The total revenue remaining to be recognized on these consolidated joint ventures ranged from $0.4 million to $120.5 million. Our proportionate share of the equity in these joint ventures was between 51.0% and 65.0%. During the three and six months ended June 30, 2013, total revenue from consolidated construction joint ventures was $45.5 million and $88.7 million, respectively. During the three and six months ended June 30, 2012, total revenue from consolidated construction joint ventures was $55.0 million and $96.6 million, respectively. Total cash used in consolidated construction joint venture operations was $16.3 million and $1.9 million during the six months ended June 30, 2013 and 2012, respectively.

Unconsolidated Construction Joint Ventures

We account for our share of construction joint ventures that we are not required to consolidate on a pro rata basis in the condensed consolidated statements of operations and as a single line item on the condensed consolidated balance sheets. As of June 30, 2013, these unconsolidated joint ventures were engaged in twelve active construction projects with total contract values ranging from $40.3 million to $3.1 billion. Our proportionate share of the equity in these unconsolidated joint ventures ranged from 20.0% to 50.0%. As of June 30, 2013, our share of the revenue remaining to be recognized on these unconsolidated joint ventures ranged from $0.3 million to $722.9 million.

As of June 30, 2013, one of our unconsolidated construction joint ventures was located in Canada and, therefore, the associated disclosures throughout this footnote include amounts that were translated from Canadian dollars to U.S. dollars using the spot rate in effect as of the reporting date for balance sheet items, or the average rate in effect during the reporting period for results of operations. The associated foreign currency translation adjustments did not have a material impact on the financial statements for any of the periods presented.

15

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Following is summary financial information related to unconsolidated construction joint ventures:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Assets:
Cash and cash equivalents1	$	342,534	$	244,686	$	337,102
Other assets	439,812		301,412		300,744
Less partners’ interest	512,775		342,545		392,139
Granite’s interest	269,571		203,553		245,707
Liabilities:
Accounts payable	115,606		114,039		101,782
Billings in excess of costs and estimated earnings1	262,259		161,268		265,883
Other liabilities	25,733		6,106		8,455
Less partners’ interest	282,521		183,432		238,234
Granite’s interest	121,077		97,981		137,886
Equity in construction joint ventures2	$	148,494	$	105,572	$	107,821

¹The volume and stage of completion of contracts from our unconsolidated construction joint ventures may cause fluctuations in cash and cash equivalents, as well as billings in excess of costs and estimated earnings between periods. The decision to distribute joint venture cash and cash equivalents and assets must generally be made jointly by all of the partners and, accordingly, these cash and cash equivalents and assets generally are not available for the working capital needs of Granite until distributed.

²As of June 30, 2013 and December 31, 2012, this balance included $0.2 million of deficit in unconsolidated construction joint ventures that is included in accrued expenses and other current liabilities on the condensed consolidated balance sheets.

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2013		2012		2013		2012
Revenue:
Total1	$	259,255	$	284,095	$	484,558	$	489,926
Less partners’ interest1,2	172,656		183,861		326,361		316,064
Granite’s interest	86,599		100,234		158,197		173,862
Cost of revenue:
Total1	212,779		227,389		371,475		397,001
Less partners’ interest1,2	141,659		150,091		248,980		259,331
Granite’s interest	71,120		77,298		122,495		137,670
Granite’s interest in gross profit	$	15,479	$	22,936	$	35,702	$	36,192

¹While Granite’s interest in revenue, cost of revenue and gross profit were correctly stated, total and partners’ interest for revenue and cost of revenue for the three and six month periods ended June 30, 2012 were inadvertently misstated in our Quarterly Report for the quarter ended June 30, 2012. Total revenue, partner’s interest in revenue, total cost of revenue and partners’ interest in cost of revenue reported were (in thousands): $663,536, $563,302, $544,838 and $467,540, respectively, for the three months ended June 30, 2012, and $869,368, $695,505, $714,450 and $576,780, respectively, for the six months ended June 30, 2012.

²Partners’ interest represents amounts to reconcile total revenue and total cost of revenue as reported by our partners to Granite’s interest, adjusted to reflect our accounting policies.

Line Item Joint Ventures

The revenue for each line item joint venture partner’s discrete items of work is defined in the contract with the project owner and each venture partner bears the profitability risk associated with its own work. There is not a single set of books and records for a line item joint venture. Each partner accounts for its items of work individually as it would for any self-performed contract. We include only our portion of these contracts in our condensed consolidated financial statements. As of June 30, 2013, we had five active line item joint venture construction projects with total contract values ranging from $42.2 million to $138.2 million of which our portion ranged from $25.1 million to $59.5 million. As of June 30, 2013, our share of revenue remaining to be recognized on these line item joint ventures ranged from $0.3 million to $23.8 million.

16

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

7. Real Estate Entities and Investments in Affiliates

The operations of our Real Estate segment are conducted through our wholly owned subsidiary, Granite Land Company (“GLC”). Generally, GLC participates with third-party partners in entities that are formed to accomplish specific real estate development projects. Our real estate affiliates include limited partnerships or limited liability companies of which we are a limited partner or member. The agreements with GLC’s partners in these real estate entities define each partner’s management role and financial responsibility in the project. If one of GLC’s partners is unable to fulfill its management role or make its required financial contribution, GLC may assume full management or financial responsibility for the project. This may result in the future consolidation of entities that are currently accounted for under the equity method in our condensed consolidated financial statements. The amount of GLC’s exposure is limited to GLC’s equity investment in the real estate joint venture. Our proportionate share of the profits and losses of these entities depends on the ultimate operating results of the entities.

Substantially all the assets of these real estate entities in which we are participants through our GLC subsidiary are classified as real estate held for development and sale and are pledged as collateral for the associated debt. All outstanding debt of these entities is non-recourse to Granite. However, there is recourse to our real estate affiliates that incurred the debt (i.e., the limited partnership or limited liability company of which we are a limited partner or member).

GLC receives authorization to provide additional financial support for certain of its real estate entities in increments to address changes in business plans. During the six months ended June 30, 2013, GLC was authorized to increase its financial support to one consolidated real estate entity by $5.9 million to meet existing debt obligations, and during the six months ended June 30, 2012 there was no increase to its authorized financial support. As of June 30, 2013, $3.4 million of the total authorized investment had yet to be contributed to the consolidated entity.

We have determined that certain of these joint ventures are consolidated because they are VIEs and we are the primary beneficiary. The factors we consider in determining whether we are a VIE’s primary beneficiary include the decision authority of each partner, which partner manages the day-to-day operations of the project and the amount of our equity investment in relation to that of our partners.

We continually evaluate whether there are changes in the status of the VIE’s or changes to the primary beneficiary designation of the VIE. Based on our assessments during the six months ended June 30, 2013 and 2012, we determined no change was required for existing real estate entities.

To determine if impairment charges should be recognized, the carrying amount of each consolidated real estate development project is reviewed on a quarterly basis. Based on our quarterly evaluations of each project’s business plan, we recorded no material impairment charges to our real estate development projects or investments during the three and six months ended June 30, 2013 and 2012.

17

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Consolidated Real Estate Entities

As of June 30, 2013, December 31, 2012 and June 30, 2012, real estate held for development and sale associated with consolidated real estate entities included in our condensed consolidated balance sheets was $50.7 million, $50.2 million and $57.4 million, respectively. Non-recourse debt, including current maturities, associated with these entities was $9.5 million, $11.6 million and $21.0 million as of June 30, 2013, December 31, 2012 and June 30, 2012, respectively. All other amounts associated with these entities were insignificant for the periods presented. As of June 30, 2013, December 31, 2012 and June 30, 2012, $40.7 million, $40.3 million and $47.5 million, respectively, of the real estate held for development and sale balances were in Washington residential real estate. The remaining balances were primarily in various commercial projects in Texas and California.

Investments in Affiliates

Our investments in affiliates balance consists of the following:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Equity method investments in real estate affiliates	$	20,378	$	19,775	$	17,563
Equity method investments in other affiliates	11,043		11,024		10,958
Total investments in affiliates	$	31,421	$	30,799	$	28,521

We have determined that certain real estate joint ventures are not consolidated because they are VIEs and we are not the primary beneficiary. We have determined that certain non-real estate joint ventures are not consolidated because they are not VIEs and we do not hold the majority voting interest. As such, these entities were accounted for using the equity method. We account for our share of the operating results of these equity method investments in other income in the condensed consolidated statements of operations and as a single line item on our condensed consolidated balance sheets as investments in affiliates.

The equity method investments in real estate included $14.1 million, $13.8 million and $12.2 million in residential real estate in Texas as of June 30, 2013, December 31, 2012 and June 30, 2012, respectively. The remaining balances were in commercial real estate in Texas. As of June 30, 2013, these real estate entities had total assets ranging from approximately $1.9 million to $47.2 million. As of each of the periods presented, the most significant non-real estate equity method investment was a 50% interest in a limited liability company which owns and operates an asphalt terminal and operates an emulsion plant in Nevada.

The following table provides summarized balance sheet information for our affiliates accounted for under the equity method on a combined basis:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Total assets	$	160,422	$	166,112	$	158,431
Net assets	93,771		92,106		87,197
Granite’s share of net assets	31,421		30,799		28,521

18

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

8. Property and Equipment, net

Balances of major classes of assets and allowances for depreciation and depletion are included in property and equipment, net on our condensed consolidated balance sheets as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Equipment and vehicles	$	760,271	$	758,782	$	722,724
Quarry property	180,325		180,567		177,792
Land and land improvements	125,489		125,961		126,396
Buildings and leasehold improvements	83,733		83,245		80,910
Office furniture and equipment	68,822		67,743		63,414
Property and equipment	1,218,640		1,216,298		1,171,236
Less: accumulated depreciation and depletion	747,375		734,820		731,572
Property and equipment, net	$	471,265	$	481,478	$	439,664

9. Intangible Assets

Indefinite-lived Intangible Assets:

Indefinite-lived intangible assets primarily consist of goodwill and use rights. Use rights of $0.4 million are included in other noncurrent assets on our condensed consolidated balance sheets as of June 30, 2013, December 31, 2012 and June 30, 2012.

The following table presents the goodwill balance by reporting segment:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Construction	$	28,300	$	29,190	$	6,936
Large Project Construction	23,184		24,115		850
Construction Materials	2,114		2,114		2,114
Total goodwill	$	53,598	$	55,419	$	9,900

19

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Amortized Intangible Assets:

Following is the breakdown of our amortized intangible assets that are included in other noncurrent assets on our condensed consolidated balance sheets:

June 30, 2013			Accumulated
(in thousands)	Gross Value		Amortization			Net Book Value
Permits	$	29,713	$	(11,430	)	$	18,283
Customer lists	4,398		(2,344		)	2,054
Covenants not to compete	1,588		(1,550		)	38
Acquired backlog	7,900		(3,447		)	4,453
Trade name	4,100		(216		)	3,884
Other	871		(797		)	74
Total amortized intangible assets	$	48,570	$	(19,784	)	$	28,786

December 31, 2012
(in thousands)
Permits	$	29,713	$	(10,869	)	$	18,844
Customer lists	4,698		(2,170		)	2,528
Covenants not to compete	1,588		(1,546		)	42
Acquired backlog	8,400		—			8,400
Trade name	4,100		—			4,100
Other	871		(734		)	137
Total amortized intangible assets	$	49,370	$	(15,319	)	$	34,051

June 30, 2012
(in thousands)
Permits	$	29,713	$	(9,494	)	$	20,219
Customer lists	2,198		(2,056		)	142
Covenants not to compete	1,588		(1,536		)	52
Other	871		(658		)	213
Total amortized intangible assets	$	34,370	$	(13,744	)	$	20,626

Amortization expense related to these intangible assets for the three and six months ended June 30, 2013 was approximately $2.3 million and $4.5 million, respectively, and approximately $1.0 million and $2.1 million for the three and six months ended June 30, 2012, respectively. Based on the amortized intangible assets balance at June 30, 2013, amortization expense expected to be recorded in the future is as follows: $4.8 million for the remainder of 2013; $2.2 million in 2014; $2.1 million in 2015; $1.8 million in 2016; $1.8 million in 2017; and $16.1 million thereafter.

The change in goodwill and in the gross value of amortized intangible assets during each period is due to the acquisition of Kenny Construction Company (“Kenny”). See Note 17 for further details.

20

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

10. Restructuring

We recorded net gains on restructuring of $0.5 million and $1.9 million during the six months ended June 30, 2013 and 2012, respectively. During 2013, we may record up to approximately $25.0 million of restructuring charges, primarily related to previously planned consolidation efforts and assets to be held-for-sale as part of our Enterprise Improvement Plan. The ultimate amount and timing of future restructuring charges is subject to market conditions and our ability to negotiate sales of certain assets at prices acceptable to us.

11. Covenants and Events of Default

Our debt and credit agreements require us to comply with various affirmative, restrictive and financial covenants. Our failure to comply with any of these covenants, or to pay principal, interest or other amounts when due thereunder, would constitute an event of default under the applicable agreements. Under certain circumstances, the occurrence of an event of default under one of our debt or credit agreements (or the acceleration of the maturity of the indebtedness under one of our agreements) may constitute an event of default under one or more of our other debt or credit agreements. Default under our debt and credit agreements could result in (1) us no longer being entitled to borrow under the agreements, (2) termination of the agreements, (3) the requirement that any letters of credit under the agreements be cash collateralized, (4) acceleration of the maturity of outstanding indebtedness under the agreements and/or (5) foreclosure on any collateral securing the obligations under the agreements.

As of June 30, 2013, we were in compliance with the covenants contained in our note purchase agreements governing our senior notes payable, Credit Agreement and debt agreements related to our consolidated real estate entities. We are not aware of any non-compliance by any of our unconsolidated real estate entities with the covenants contained in their debt agreements.

12. Weighted Average Shares Outstanding

A reconciliation of the weighted average shares outstanding used in calculating basic and diluted net income (loss) per share in the accompanying condensed consolidated statements of operations is as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2013	2012	2013	2012
Weighted average shares outstanding:
Weighted average common stock outstanding	38,829	38,664	38,782	38,666
Less: weighted average unvested restricted stock outstanding	—	193	62	298
Total basic weighted average shares outstanding	38,829	38,471	38,720	38,368
Diluted weighted average shares outstanding:
Weighted average common stock outstanding, basic	38,829	38,471	38,720	38,368
Effect of dilutive securities:
Common stock options and restricted stock units1	940	680	—	—
Total weighted average shares outstanding assuming dilution	39,769	39,151	38,720	38,368

¹Due to the net loss for the six months ended June 30, 2013 and 2012, restricted stock units and common stock options representing approximately 851,000 and 580,000 shares, respectively, have been excluded from the number of shares used in calculating diluted net loss per share for the respective periods, as their inclusion would be antidilutive.

21

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

13. Earnings Per Share

We calculate earnings per share (“EPS”) under the two-class method by allocating earnings to both common shares and unvested restricted stock which are considered participating securities. However, net losses are not allocated to participating securities for purposes of computing EPS under the two-class method. The following is a reconciliation of net income (loss) attributable to Granite and related weighted average shares of common stock outstanding for purposes of calculating basic and diluted net income (loss) per share using the two-class method (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2013		2012		2013			2012
Basic
Numerator:
Net income (loss) attributable to Granite	$	2,718	$	1,949	$	(19,264	)	$	(9,824	)
Less: net income allocated to participating securities	—		10		—			—
Net income (loss) allocated to common shareholders for basic calculation	$	2,718	$	1,939	$	(19,264	)	$	(9,824	)
Denominator:
Weighted average common shares outstanding, basic	38,829		38,471		38,720			38,368
Net income (loss) per share, basic	$	0.07	$	0.05	$	(0.50	)	$	(0.26	)
Diluted
Numerator:
Net income (loss) attributable to Granite	$	2,718	$	1,949	$	(19,264	)	$	(9,824	)
Less: net income allocated to participating securities	—		10		—			—
Net income (loss) allocated to common shareholders for diluted calculation	$	2,718	$	1,939	$	(19,264	)	$	(9,824	)
Denominator:
Weighted average common shares outstanding, diluted	39,769		39,151		38,720			38,368
Net income (loss) per share, diluted	$	0.07	$	0.05	$	(0.50	)	$	(0.26	)

22

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

14. Equity

The following tables summarize our equity activity for the periods presented:

(in thousands)	Granite Construction Incorporated			Noncontrolling Interests			Total Equity
Balance at December 31, 2012	$	829,953		$	41,905		$	871,858
Purchase of common stock1	(5,022		)	—			(5,022		)
Other transactions with shareholders3	8,796			—			8,796
Transactions with noncontrolling interests, net4	—			(14,701		)	(14,701		)
Net (loss) income	(19,264		)	2,603			(16,661		)
Dividends on common stock	(10,096		)	—			(10,096		)
Balance at June 30, 2013	$	804,367		$	29,807		$	834,174

(in thousands)
Balance at December 31, 2011	$	799,197		$	28,466		$	827,663
Purchase of common stock2	(4,054		)	—			(4,054		)
Other transactions with shareholders3	5,211			—			5,211
Transactions with noncontrolling interests, net4	—			(5,440		)	(5,440		)
Net (loss) income	(9,824		)	5,624			(4,200		)
Dividends on common stock	(10,050		)	—			(10,050		)
Balance at June 30, 2012	$	780,480		$	28,650		$	809,130

¹Represents 168,000 shares purchased in connection with employee tax withholding for shares/units granted under our Amended and Restated 1999 Equity Incentive Plan.

²Represents 139,000 shares purchased in connection with employee tax withholding for shares/units granted under our Amended and Restated 1999 Equity Incentive Plan.

³Amounts are comprised primarily of amortized restricted stock and units.

⁴Amounts are comprised primarily of distributions to noncontrolling partners.

23

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

15. Legal Proceedings

In the ordinary course of business, we are involved in various legal proceedings that are pending against us and our affiliates alleging, among other things, breach of contract or tort in connection with the performance of professional services, the various outcomes of which cannot be predicted with certainty. The most significant of these proceedings are as follows:

• Investigation Related to Grand Avenue Project Disadvantaged Business Enterprise (“DBE”) Issues: On March 6, 2009, the U.S. Department of Transportation, Office of Inspector General served upon our wholly-owned subsidiary, Granite Construction Northeast, Inc. (“Granite Northeast”), a United States District Court Eastern District of New York Grand Jury subpoena to produce documents. The subpoena sought all documents pertaining to the use of a DBE firm (the “Subcontractor”), and the Subcontractor’s use of a non-DBE lower tier subcontractor/consultant, on the Grand Avenue Bus Depot and Central Maintenance Facility for the Borough of Queens Project (the “Grand Avenue Project”), a Granite Northeast project. The subpoena sought any documents regarding the use of the Subcontractor as a DBE on any other projects and any other documents related to the Subcontractor or to the lower-tier subcontractor/consultant. Granite Northeast produced the requested documents, together with other requested information. Subsequently, Granite Northeast was informed by the DOJ that it is a subject of the investigation, along with others. In January 2013, Granite Northeast met with Assistant United States Attorneys from the DOJ, along with other federal and state agencies (the “Agencies”), to discuss the status of the government’s criminal investigation of the Grand Avenue Project participants and some of their representatives, including Granite Northeast. In addition to the documents produced in response to the Grand Jury subpoena, Granite Northeast has provided information to the Agencies concerning other projects for which Granite Northeast has claimed DBE credit. Granite Northeast is fully cooperating with the Agencies’ investigation. We cannot, however, rule out the possibility of actions being brought against Granite Northeast which could result in civil, criminal, and/or administrative penalties or sanctions. Granite is unable to estimate at this time the entire losses or the most likely amount that it may incur in this matter. Such penalty or sanctions are probable; therefore, Granite recorded the low end of the estimated range of losses. Under certain circumstances the resolution of the matters under investigation could have direct or indirect consequences that could have a material adverse effect on our financial position, results of operations and/or liquidity.

• Other Legal Proceedings/Government Inquiries: We are a party to a number of other legal proceedings arising in the normal course of business. From time to time, we also receive inquiries from public agencies seeking information concerning our compliance with government construction contracting requirements and related laws and regulations. We believe that the nature and number of these proceedings and compliance inquiries are typical for a construction firm of our size and scope. Our litigation typically involves claims regarding public liability or contract related issues. While management currently believes, after consultation with counsel, that the ultimate outcome of pending proceedings and compliance inquiries, individually and in the aggregate, will not have a material adverse effect on our financial position, results of operations or cash flows, litigation is subject to inherent uncertainties. Were one or more unfavorable rulings to occur, there exists the possibility of a material adverse effect on our financial position, results of operations, cash flows and/or liquidity for the period in which the ruling occurs. In addition, our government contracts could be terminated, we could be suspended or debarred, or payment of our costs could be disallowed. While any one of our pending legal proceedings is subject to early resolution as a result of our ongoing efforts to settle, whether or when any legal proceeding will be resolved through settlement is neither predictable nor guaranteed.

We record amounts in our condensed consolidated balance sheets representing our estimated liability relating to legal proceedings and government inquiries. During the three and six months ended June 30, 2013 and 2012, there were no significant additions or revisions to the estimated liability that were recorded in our condensed consolidated statements of operations, or significant changes to our accrual for such litigation loss contingencies on our condensed consolidated balance sheets.

24

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

16. Business Segment Information

Our reportable segments are: Construction, Large Project Construction, Construction Materials and Real Estate. 

The Construction segment performs various construction projects with a large portion of the work focused on new construction and improvement of streets, roads, highways, bridges, site work and other infrastructure projects. These projects are typically bid-build projects completed within two years with a contract value of less than $75 million.

The Large Project Construction segment focuses on large, complex infrastructure projects which typically have longer duration than our Construction segment work. These projects include major highways, mass transit facilities, bridges, tunnels, waterway locks and dams, pipelines, canals and airport infrastructure. This segment primarily includes bid-build, design-build and construction management/general contractor contracts, generally with contract values in excess of $75 million.

The Construction Materials segment mines and processes aggregates and operates plants that produce construction materials for internal use and for sale to third parties.

The Real Estate segment develops, operates, and sells real estate related projects and provides real estate services for the Company’s operations. The Real Estate segment’s current portfolio consists of residential, retail and office site development projects for sale to home and commercial property developers in Washington, California and Texas. In October 2010, we announced our Enterprise Improvement Plan that includes plans to orderly divest of our real estate investment business consistent with our strategy to focus on our core business.

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies contained in our 2012 Annual Report on Form 10-K. We evaluate segment performance based on gross profit or loss, and do not include overhead and non-operating income or expense. Segment assets include property and equipment, intangibles, goodwill, inventory, equity in construction joint ventures and real estate held for development and sale.

25

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Summarized segment information is as follows:

	Three Months Ended June 30,
(in thousands)	Construction		Large Project Construction		Construction Materials			Real Estate		Total
2013
Total revenue from reportable segments	$	308,602	$	181,371	$	97,872		$	4	$	587,849
Elimination of intersegment revenue	—		—		(37,687		)	—		(37,687		)
Revenue from external customers	308,602		181,371		60,185			4		550,162
Gross profit	25,154		22,088		3,954			1		51,197
Depreciation, depletion and amortization	6,033		3,182		5,891			—		15,106
2012
Total revenue from reportable segments	$	245,113	$	228,799	$	115,852		$	2,354	$	592,118
Elimination of intersegment revenue	—		—		(52,503		)	—		(52,503		)
Revenue from external customers	245,113		228,799		63,349			2,354		539,615
Gross profit	17,961		28,239		5,000			716		51,916
Depreciation, depletion and amortization	3,233		909		7,179			—		11,321

	Six Months Ended June 30,
(in thousands)	Construction		Large Project Construction		Construction Materials			Real Estate		Total
2013
Total revenue from reportable segments	$	485,720	$	353,086	$	136,261		$	125	$	975,192
Elimination of intersegment revenue	—		—		(46,326		)	—		(46,326		)
Revenue from external customers	485,720		353,086		89,935			125		928,866
Gross profit (loss)	38,353		44,808		(2,020		)	112		81,253
Depreciation, depletion and amortization	11,692		5,158		11,456			—		28,306
Segment assets	161,524		206,778		351,295			50,697		770,294
2012
Total revenue from reportable segments	$	363,059	$	392,727	$	146,861		$	5,017	$	907,664
Elimination of intersegment revenue	—		—		(57,889		)	—		(57,889		)
Revenue from external customers	363,059		392,727		88,972			5,017		849,775
Gross profit (loss)	26,541		50,488		(950		)	773		76,852
Depreciation, depletion and amortization	6,813		2,177		14,557			—		23,547
Segment assets	110,119		119,652		365,690			57,367		652,828

A reconciliation of segment gross profit to consolidated income (loss) before provision for (benefit from) income taxes is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2013			2012			2013			2012
Total gross profit from reportable segments	$	51,197		$	51,916		$	81,253		$	76,852
Selling, general and administrative expenses	46,454			40,806			104,112			85,882
Gain on restructuring	—			—			497			1,888
Gain on sales of property and equipment	3,306			2,954			4,394			4,871
Total other expense	(3,117		)	(7,718		)	(5,954		)	(3,602		)
Income (loss) before provision for (benefit from) income taxes	$	4,932		$	6,346		$	(23,922	)	$	(5,873	)

26

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

17. Acquisition

On December 28, 2012, we signed a definitive agreement to acquire 100% of the outstanding shares of Kenny, a national contractor and construction manager based in Northbrook, Illinois for $141.1 million. The acquisition was effective December 31, 2012 and was funded through cash on hand and $70.0 million of proceeds from borrowings under Granite’s existing revolving credit facility. In accordance with the terms of the agreement, we paid a post-closing adjustment of $4.6 million in the second quarter of 2013 that was included in accrued and other current liabilities on our condensed consolidated balance sheet as of December 31, 2012. We expect to pay an additional $3.9 million of post-closing adjustment in the third quarter of 2013 that is included in accrued and other current liabilities on our condensed consolidated balance sheets as of June 30, 2013 and December 31, 2012. Each of these post-closing adjustments is reflected in the purchase price.

The acquired business operates under the name Kenny Construction Company as a wholly owned subsidiary of Granite Construction Incorporated. Kenny operates in the tunneling, electrical power, underground and civil businesses. Their underground business utilizes cutting-edge trenchless construction technologies and processes. This acquisition expands our presence in these markets and enables us to leverage our capabilities and geographic footprint. Kenny has approximately 475 employees and a network of 12 offices in the United States. We have accounted for this transaction in accordance with ASC Topic 805, Business Combinations (“ASC 805”).

Purchase Price Allocation

In accordance with ASC 805, a preliminary allocation of the purchase price was made to the net tangible and identifiable intangible assets based on their estimated fair values as of December 31, 2012. During the three months ended March 31, 2013, we adjusted the preliminary values assigned to certain assets and liabilities to reflect additional information obtained by $1.8 million, and made no such adjustments during the three months ended June 30, 2013. The condensed consolidated balance sheet as of June 30, 2013 reflects these changes, the most significant of which included an increase of $1.1 million to property and equipment. These adjustments are subject to revision, which may result in adjustments to the values presented below. We expect to finalize these amounts within 12 months from the acquisition date and do not expect any adjustments to be material. The following table presents the adjusted purchase price allocation (in thousands):

Cash and cash equivalents		$	53,185
Receivables		88,725
Costs and estimated earnings in excess of billings		444
Inventories		731
Equity in construction joint ventures		7,803
Other current assets		6,039
Property and equipment, net		52,267
Identifiable intangible assets:
Acquired backlog	7,900
Customer list	2,200
Trade name	4,100
Total identifiable intangible assets		14,200
Total identifiable assets acquired		223,394
Accounts payable		43,748
Billings in excess of costs and estimated earnings		50,098
Accrued expenses and other current liabilities		16,806
Noncontrolling interests		15,326
Net identifiable assets acquired		97,416
Goodwill		43,698
Purchase price		$	141,114

27

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Intangible assets

Acquired intangible assets included backlog, customer relationships and trade name. We amortize the fair value of backlog intangible assets based on the associated project’s percent complete, and use the straight-line method over the assets’ estimated useful lives for other intangible assets. The estimated useful lives for backlog and customer relationships range from 1 to 8 years and represent existing contracts and the underlying customer relationships. The estimated useful lives of the trade names are 10 years and represent the fair values of the acquired trade names and trademarks. The identifiable intangible assets are expected to be deductible for income tax purposes. We recorded amortization expense associated with the acquired intangible assets as follows:

	Three Months Ended		Six Months Ended
(in thousands)	June 30, 2013
Cost of revenue - Construction	$	1,600	$	3,200
Cost of revenue - Large Project Construction	140		247
Selling, general and administrative expenses	181		362
Total	$	1,921	$	3,809

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. The factors that contributed to the recognition of goodwill from the acquisition of Kenny include acquiring a workforce with capabilities in the power, tunnel and underground markets, cost savings opportunities and the significant synergies expected to arise. The $43.7 million of goodwill that resulted from this acquisition is included in our Construction and Large Project Construction segments - see Note 9. The goodwill is expected to be deductible for income tax purposes.

In connection with the acquisition, Kenny became a guarantor of our obligations under the Credit Agreement and outstanding senior notes and pledged substantially all of its assets to collateralize such obligations, in each case on substantially the same terms as our other subsidiaries that are guarantors of such obligations.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONS

Forward-Looking Disclosure

From time to time, Granite makes certain comments and disclosures in reports and statements, including in this Quarterly Report on Form 10-Q, or statements made by its officers or directors, that are not based on historical facts, including statements regarding future events, occurrences, circumstances, activities, performance, outcomes and results, that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are identified by words such as “future,” “outlook,” “assumes,” “believes,” “expects,” “estimates,” “anticipates,” “intends,” “plans,” “appears,” “may,” “will,” “should,” “could,” “would,” “continue,” and the negatives thereof or other comparable terminology or by the context in which they are made. In addition, other written or oral statements which constitute forward-looking statements have been made and may in the future be made by or on behalf of Granite.  These forward-looking statements are estimates reflecting the best judgment of senior management and are based on our current expectations regarding future events, occurrences, circumstances, activities, performance, outcomes and results.  These expectations may or may not be realized.  Some of these expectations may be based on beliefs, assumptions or estimates that may prove to be incorrect.  In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our business, financial condition, results of operations, cash flows and liquidity.  Such risks and uncertainties include, but are not limited to, those more specifically described in our Annual Report on Form 10-K under “Item 1A. Risk Factors.”Due to the inherent risks and uncertainties associated with our forward-looking statements, the reader is cautioned not to place reliance on them.  The reader is also cautioned that the forward-looking statements contained herein speak only as of the date of this Quarterly Report on Form 10-Q and, except as required by law, we undertake no obligation to revise or update any forward-looking statements for any reason.

29

Overview

We are one of the largest diversified heavy civil contractors and construction materials producers in the United States, engaged in the construction and improvement of streets, roads, highways, mass transit facilities, airport infrastructure, bridges, trenchless and underground utilities, electrical utilities, tunnels, dams and other infrastructure-related projects. We own aggregate reserves and plant facilities to produce construction materials for use in our construction business and for sale to third parties. We also operate a real estate investment business that we plan to orderly divest of as part of our Enterprise Improvement Plan (“EIP”) initiated in 2010. Our permanent offices are located in Alaska, Arizona, California, Colorado, Florida, Illinois, Nevada, New York, Pennsylvania, Texas, Utah and Washington. We have four reportable business segments: Construction, Large Project Construction, Construction Materials and Real Estate (see Note 16 of “Notes to the Condensed Consolidated Financial Statements”).

Our construction contracts are obtained through competitive bidding in response to solicitations by both public agencies and private parties and on a negotiated basis as a result of solicitations from private parties. Project owners use a variety of methods to make contractors aware of new projects, including posting bidding opportunities on agency websites, disclosing long-term infrastructure plans, advertising and other general solicitations. Our bidding activity is affected by such factors as the nature and volume of advertising and other solicitations, contract backlog, available personnel, current utilization of equipment and other resources, our ability to obtain necessary surety bonds and competitive considerations. Our contract review process includes identifying risks and opportunities during the bidding process and managing these risks through mitigation efforts such as insurance and pricing. Contracts fitting certain criteria of size and complexity are reviewed by various levels of management and, in some cases, by the Executive Committee of our Board of Directors. Bidding activity, contract backlog and revenue resulting from the award of new contracts may vary significantly from period to period.

Our typical construction project begins with the preparation and submission of a bid to a customer. If selected as the successful bidder, we generally enter into a contract with the customer that provides for payment upon completion of specified work or units of work as identified in the contract. We usually invoice our customers on a monthly basis. Our contracts frequently call for retention that is a specified percentage withheld from each payment until the contract is completed and the work accepted by the customer. Additionally, we generally defer recognition of profit on projects until they reach at least 25% completion (see “Gross Profit (Loss)” section below) and our profit recognition is based on estimates that may change over time. Our revenue, gross margin and cash flows can differ significantly from period to period due to a variety of factors including the projects’ stage of completion, the mix of early and late stage projects, our estimates of contract costs and the payment terms of our contracts. The timing differences between our cash inflows and outflows require us to maintain adequate levels of working capital.

The four primary economic drivers of our business are (1) the overall health of the economy, (2) federal, state and local public funding levels, (3) population growth resulting in public and private development, and (4) the need to replace or repair aging infrastructure. A stagnant or declining economy will generally result in reduced demand for construction and construction materials in the private sector. This reduced demand increases competition for private sector projects and will ultimately also increase competition in the public sector as companies migrate from bidding on scarce private sector work to projects in the public sector. Greater competition can reduce our revenues and/or have a downward impact on our gross profit margins. In addition, a stagnant or declining economy tends to produce less tax revenue for public agencies, thereby decreasing a source of funds available for spending on public infrastructure improvements. Some funding sources that have been specifically earmarked for infrastructure spending, such as diesel and gasoline taxes, are not as directly affected by a stagnant or declining economy, unless actual consumption is reduced. However, even these can be temporarily at risk as state and local governments take actions to balance their budgets. Additionally, high fuel prices can have a dampening effect on consumption, resulting in overall lower tax revenue. Conversely, increased levels of public funding as well as an expanding or robust economy will generally increase demand for our services and provide opportunities for revenue growth and margin improvement.

Our market sector information reflects four groups defined as follows: 1) California; 2) Northwest, which primarily includes offices in Alaska, Nevada, Utah and Washington; 3) East, which primarily includes offices in Arizona, Florida, New York and Texas; and 4) Kenny, which primarily includes offices in Colorado, Illinois, and Pennsylvania.  Each of these groups includes operations from our Construction and Large Project Construction lines of business. Our California, Northwest and East groups include operations from our Construction Materials line of business. A project’s results are reported in the group that is responsible for the project, not necessarily the geographic area where the work is located. In some cases, the operations of a group include the results of work performed outside of that geographic region.

30

Current Economic Environment and Outlook

There is a significant amount of large projects out to bid across the country in each of our market areas. We continue, however, to operate in a highly competitive bidding environment. Competition coupled with funding issues for public sector infrastructure projects and weak demand for commercial and residential development in many of our markets has impacted, and may continue to impact, our ability to grow backlog at adequate margins and increase profitability. While we expect these challenging conditions to persist through most of 2013, we are encouraged by improvements in the private sector across the country which has the potential to positively impact our business in 2014. In addition, we are proactively seeking opportunities outside our traditional markets, specifically in the power, tunnel and water markets through the acquisition of Kenny Construction Company (“Kenny”), as well as the rail, industrial and federal markets through expanded Granite lines of business. We continue to be encouraged by the opportunities driven by the Transportation Infrastructure Financing and Innovation Act, authorized in the 2012 federal highway bill, which we believe will help facilitate and accelerate several projects that would not have moved forward otherwise.

During 2013, we may record up to approximately $25.0 million of restructuring charges, primarily related to previously planned consolidation efforts and assets to be held-for-sale as part of our EIP. The ultimate amount and timing of future restructuring charges is subject to our ability to negotiate sales of certain assets at prices acceptable to us. The majority of restructuring charges associated with the EIP were recorded in 2010. During the six months ended June 30, 2013 and 2012, we recorded net gains on restructuring of $0.5 million and $1.9 million, respectively.

Results of Operations

Our operations are typically affected by weather conditions during the first and fourth quarters of our fiscal year which may alter our construction schedules and can create variability in our revenues and profitability. Therefore, the results of operations for the three and six months ended June 30, 2013 are not necessarily indicative of the results to be expected for the full year.

Comparative Financial Summary	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2013			2012			2013			2012
Total revenue	$	550,162		$	539,615		$	928,866		$	849,775
Gross profit	51,197			51,916			81,253			76,852
Operating income (loss)	8,049			14,064			(17,968		)	(2,271		)
Total other expense	(3,117		)	(7,718		)	(5,954		)	(3,602		)
Amount attributable to noncontrolling interests	(448		)	(2,538		)	(2,603		)	(5,624		)
Net income (loss) attributable to Granite Construction Incorporated	2,718			1,949			(19,264		)	(9,824		)

31

Revenue

Total Revenue by Segment	Three Months Ended June 30,								Six Months Ended June 30,
(dollars in thousands)	2013				2012				2013				2012
Construction	$	308,602	56.1	%	$	245,113	45.5	%	$	485,720	52.3	%	$	363,059	42.7	%
Large Project Construction	181,371		33.0		228,799		42.4		353,086		38.0		392,727		46.2
Construction Materials	60,185		10.9		63,349		11.7		89,935		9.7		88,972		10.5
Real Estate	4		—		2,354		0.4		125		—		5,017		0.6
Total	$	550,162	100.0	%	$	539,615	100.0	%	$	928,866	100.0	%	$	849,775	100.0	%

Construction Revenue	Three Months Ended June 30,								Six Months Ended June 30,
(dollars in thousands)	2013				2012				2013				2012
California:
Public sector	$	94,284	30.6	%	$	112,546	45.9	%	$	156,620	32.2	%	$	179,959	49.6	%
Private sector	20,089		6.5		11,704		4.8		35,530		7.3		19,587		5.4
Northwest:
Public sector	108,078		35.0		74,473		30.4		126,122		26.0		91,283		25.1
Private sector	24,009		7.8		33,337		13.6		39,333		8.1		46,631		12.8
East:
Public sector	10,944		3.5		10,783		4.4		19,433		4.0		21,333		5.9
Private sector	1,635		0.5		2,270		0.9		5,821		1.2		4,266		1.2
Kenny:
Public sector	49,563		16.1		—		—		102,861		21.2		—		—
Total	$	308,602	100.0	%	$	245,113	100.0	%	$	485,720	100.0	%	$	363,059	100.0	%

Construction revenue for the three and six months ended June 30, 2013 increased by $63.5 million, or 25.9%, and $122.7 million, or 33.8%, respectively, compared to the same periods in 2012 primarily due to the acquisition of Kenny in December 2012. The decrease in California public sector revenue and the increases in Northwest public sector and California private sector revenues were the result of fluctuations in bidding success.

32

Large Project Construction Revenue1	Three Months Ended June 30,								Six Months Ended June 30,
(dollars in thousands)	2013				2012				2013				2012
California	$	30,875	17.0	%	$	25,893	11.3	%	$	65,368	18.5	%	$	46,019	11.7	%
Northwest	30,070		16.6		86,839		38.0		65,551		18.6		130,355		33.2
East	103,335		57.0		116,067		50.7		194,633		55.1		216,353		55.1
Kenny	17,091		9.4		—		—		27,534		7.8		—		—
Total	$	181,371	100.0	%	$	228,799	100.0	%	$	353,086	100.0	%	$	392,727	100.0	%

¹For the periods presented, all Large Project Construction revenue was earned from the public sector.

Large Project Construction revenue for the three and six months ended June 30, 2013 decreased by $47.4 million, or 20.7%, and $39.6 million, or 10.1%, respectively, compared to the same periods in 2012 primarily due to ongoing projects nearing completion in the Northwest and East while new projects were just beginning. These decreases were partially offset by increases from progress on projects in California and the impact of the acquisition of Kenny in December 2012.

Construction Materials Revenue	Three Months Ended June 30,								Six Months Ended June 30,
(dollars in thousands)	2013				2012				2013				2012
California	$	31,837	52.9	%	$	39,673	62.7	%	$	52,398	58.2	%	$	59,000	66.3	%
Northwest	20,110		33.4		17,251		27.2		24,079		26.8		20,266		22.8
East	8,238		13.7		6,425		10.1		13,458		15.0		9,706		10.9
Total	$	60,185	100.0	%	$	63,349	100.0	%	$	89,935	100.0	%	$	88,972	100.0	%

Construction Materials revenue decreased $3.2 million, or 5.0%, for the three months endedJune 30, 2013 and increased by $1.0 million, or 1.1%, for the six months endedJune 30, 2013 compared to the same periods in 2012. Although revenue increased for the six months ended June 30, 2013 when compared to 2012, the construction materials business continues to be impacted by the weakness in the commercial and residential development markets.

Real Estate Revenue

Real Estate revenue decreased $2.4 million and $4.9 million for the three and six months ended June 30, 2013, respectively, compared to the same periods in 2012. The decreases were primarily attributable to the sale of a commercial property in California during the first quarter of 2012 with no corresponding sales in 2013. Factors that contribute to fluctuations in revenue include national and local market conditions, entitlement status of properties and buyers access to capital. Additionally, as we execute on our EIP, we have less real estate for sale.

Contract Backlog

Our contract backlog consists of the remaining unearned revenue on awarded contracts, including 100% of our consolidated joint venture contracts and our proportionate share of unconsolidated joint venture contracts. We generally include a project in our contract backlog at the time it is awarded and funding is in place. Certain federal government contracts where funding is appropriated on a periodic basis are included in contract backlog at the time of the award. Substantially all of the contracts in our contract backlog may be canceled or modified at the election of the customer; however, we have not been materially adversely affected by contract cancellations or modifications in the past.

The following tables illustrate our contract backlog as of the respective dates:

Total Contract Backlog by Segment
(dollars in thousands)	June 30, 2013				March 31, 2013				June 30, 2012
Construction	$	807,686	28.9	%	$	740,259	30.8	%	$	697,535	35.8	%
Large Project Construction	1,989,156		71.1		1,660,056		69.2		1,252,828		64.2
Total	$	2,796,842	100.0	%	$	2,400,315	100.0	%	$	1,950,363	100.0	%

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Construction Contract Backlog
(dollars in thousands)	June 30, 2013				March 31, 2013				June 30, 2012
California:
Public sector	$	366,583	45.4	%	$	330,484	44.6	%	$	367,737	52.7	%
Private sector	37,309		4.6		38,676		5.2		13,374		1.9
Northwest:
Public sector	250,137		31.0		212,305		28.8		231,574		33.2
Private sector	46,159		5.7		15,806		2.1		44,690		6.4
East:
Public sector	6,485		0.8		11,894		1.6		33,935		4.9
Private sector	4,271		0.5		4,503		0.6		6,225		0.9
Kenny:
Public sector	49,902		6.2		49,071		6.6		—		—
Private sector	46,840		5.8		77,520		10.5		—		—
Total	$	807,686	100.0	%	$	740,259	100.0	%	$	697,535	100.0	%

Construction contract backlog of $807.7 million at June 30, 2013 was $67.4 million, or 9.1%, higher than at March 31, 2013 and $110.2 million, or 15.8%, higher than at June 30, 2012. The increase from March 31, 2013 was primarily due to new awards in the California and Northwest public sectors as well as in the Northwest private sector, partially offset by progress on existing projects. New awards during the three months endedJune 30, 2013 included a highway improvement project of $33.8 million in California and a rail improvement project of $20.0 million in Washington. The increase from June 30, 2012 was primarily due to the acquisition of Kenny contract backlog, partially offset by progress on existing projects.

Large Project Construction Contract Backlog1
(dollars in thousands)	June 30, 2013				March 31, 2013				June 30, 2012
California	$	153,428	7.7	%	$	116,755	7.0	%	$	177,047	14.1	%
Northwest	132,608		6.7		157,016		9.5		323,337		25.8
East	1,513,085		76.0		1,181,537		71.2		752,444		60.1
Kenny2	190,035		9.6		204,748		12.3		—		—
Total	$	1,989,156	100.0	%	$	1,660,056	100.0	%	$	1,252,828	100.0	%

¹For the periods presented, all Large Project Construction contract backlog is related to contracts with public agencies.

²As of June 30, 2013 and March 31, 2013, $69.5 million and $70.7 million, respectively, of Kenny contract backlog was translated from Canadian dollars to U.S. dollars at the spot rate in effect at the date of reporting.

Large Project Construction contract backlog of $2.0 billion at June 30, 2013 was $329.1 million, or 19.8%, higher than at March 31, 2013, and $736.3 million, or 58.8%, higher than at June 30, 2012. The increase from March 31, 2013 was primarily due to an improved success rate on bidding activity partially offset by progress on existing projects. Awards included a $296.0 million highway rebuild project in Texas, a $130.1 million highway reconstruction project in North Carolina and a $61.3 million dam removal project in northern California. The increase from June 30, 2012 was primarily due to the award of the Tappan Zee Bridge project in the East as well as the acquisition of Kenny contract backlog, partially offset by progress on existing projects.

Noncontrolling interests included in Large Project Construction contract backlog as of June 30, 2013, March 31, 2013, and June 30, 2012 were $82.3 million, $96.2 million and $117.3 million, respectively.

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Gross Profit (Loss)

The following table presents gross profit (loss) by business segment for the respective periods:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2013			2012			2013			2012
Construction	$	25,154		$	17,961		$	38,353		$	26,541
Percent of segment revenue	8.2		%	7.3		%	7.9		%	7.3		%
Large Project Construction	22,088			28,239			44,808			50,488
Percent of segment revenue	12.2			12.3			12.7			12.9
Construction Materials	3,954			5,000			(2,020		)	(950		)
Percent of segment revenue	6.6			7.9			(2.2		)	(1.1		)
Real Estate	1			716			112			773
Percent of segment revenue	25.0			30.4			89.6			15.4
Total gross profit	$	51,197		$	51,916		$	81,253		$	76,852
Percent of total revenue	9.3		%	9.6		%	8.7		%	9.0		%

We generally defer profit recognition until a project reaches at least 25% completion. In the case of large, complex design/build projects, we may defer profit recognition beyond the point of 25% completion until such time as we believe we have enough information to make a reasonably dependable estimate of contract revenue and cost. Because we have a large number of smaller projects at various stages of completion in our Construction segment, this policy generally does not impact gross profit significantly on a quarterly or annual basis. However, our Large Project Construction segment has fewer projects at any given time; therefore, gross profit can vary significantly in periods where one or more projects reach our percentage of completion threshold and the deferred profit is recognized or, conversely, in periods where contract backlog is growing rapidly and a higher percentage of projects are in their early stages with no associated gross profit recognition.

The following table presents revenue from projects that have not yet reached our profit recognition threshold:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2013		2012		2013		2012
Construction	$	37,144	$	14,065	$	41,194	$	14,645
Large Project Construction	12,728		16,789		12,777		26,727
Total revenue from contracts with deferred profit	$	49,872	$	30,854	$	53,971	$	41,372

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We do not recognize revenue from contract claims until we have a signed agreement and payment is assured, nor do we recognize revenue from contract change orders until the owner has agreed to the change order in writing. However, we do recognize the costs related to any contract claims or pending change orders when such costs are incurred, and we revise estimated total costs as soon as the obligation to perform is determined. As a result, our gross profit as a percent of revenue can vary depending on the magnitude and timing of the settlement of claims and change orders.

When we experience significant contract forecast changes, we undergo a process that includes reviewing the nature of the changes to ensure that there are no material amounts that should have been recorded in a prior period rather than as a change in estimate for the current period. In our review of these changes for the three and six months ended June 30, 2013 and 2012, we did not identify any material amounts that should have been recorded in a prior period.

Construction gross profit for the three and six months ended June 30, 2013 increased $7.2 million and $11.8 million, respectively, compared to the same periods in 2012. The increases were primarily due to $8.5 million and $13.2 million in gross profit from Kenny operations that are reflected in the three and six months ended June 30, 2013 results, respectively, and not in 2012. The increases from Kenny operations were partially offset by decreases in gross profit due to increased competition and challenging market conditions, primarily in the Northwest. Construction gross profit as a percent of segment revenue remained relatively unchanged during the three and six months ended June 30, 2013 compared to the same periods in 2012.

Large Project Construction gross profit for the three and six months ended June 30, 2013 decreased $6.2 million and $5.7 million, respectively, compared to the same periods in 2012. The gross profit decrease was primarily due to lower volume on several projects in the East that are nearing completion, decreases from revisions in estimates on projects in the East and Northwest, and newly awarded projects in the East which have not yet reached the profit recognition threshold. Large Project Construction gross profit as a percent of segment revenue remained relatively unchanged during the three and six months ended June 30, 2013 compared to the same periods in 2012.

Construction Materials and Real Estate gross profit remained relatively unchanged for the three and six months ended June 30, 2013 compared to the same period in 2012 as residential, commercial and private markets remained depressed.

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Selling, General and Administrative Expenses

The following table presents the components of selling, general and administrative expenses for the respective periods:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2013			2012			2013			2012
Selling
Salaries and related expenses	$	9,703		$	10,122		$	21,240		$	19,950
Other selling expenses	73			1,858			2,112			3,887
Total selling	9,776			11,980			23,352			23,837
General and administrative
Salaries and related expenses	15,700			13,925			32,502			28,637
Incentive compensation	3,540			1,893			5,390			3,097
Restricted stock amortization and related expenses	2,609			2,296			9,569			6,492
Other general and administrative expenses	14,829			10,712			33,299			23,819
Total general and administrative	36,678			28,826			80,760			62,045
Total selling, general and administrative	$	46,454		$	40,806		$	104,112		$	85,882
Percent of revenue	8.4		%	7.6		%	11.2		%	10.1		%

Selling, general and administrative expenses for the three and six months ended June 30, 2013 increased $5.6 million, or 13.8%, and $18.2 million, or 21.2%, compared to the same periods in 2012.

Selling Expenses

Selling expenses include the costs for aggregate permits, business development, estimating and bidding. Selling expenses can vary depending on the volume of projects in process and the number of employees assigned to estimating and bidding activities. As projects are completed or the volume of work slows down, we temporarily redeploy project employees to bid on new projects, moving their salaries and related costs from cost of revenue to selling expenses. Selling expenses during the three and six months ended June 30, 2013 decreased $2.2 million, or 18.4%, and $0.5 million, or 2.0%, compared to the same periods in 2012 primarily due to a decrease in costs related to bidding activities partially offset by the addition of expenses associated with Kenny employees.

General and Administrative Expenses

General and administrative expenses include costs related to our operational offices that are not allocated to direct contract costs and expenses related to our corporate functions. These costs include variable cash and restricted stock performance-based incentives for select management personnel on which our compensation strategy heavily relies. The cash portion of these incentives is expensed when earned while the restricted stock portion is expensed as earned over the vesting period of the restricted stock award (generally three years). Other general and administrative expenses include changes in the fair market value of our Non-Qualified Deferred Compensation plan liability, depreciation, information technology, occupancy, office supplies, outside services, training, travel and entertainment and other miscellaneous expenses none of which individually exceeded 10% of total general and administrative expenses.

Total general and administrative expenses for the three and six months ended June 30, 2013 increased $7.9 million, or 27.2%, and $18.7 million, or 30.2%, respectively, compared to the same periods in 2012. The increase during the three months ended June 30, 2013 was primarily due to the addition of expenses associated with Kenny, including $2.0 million of salaries and related expenses, $0.9 million of incentive compensation and $3.9 million of other general and administrative expenses. The increase during the six months ended June 30, 2013 was primarily due to the addition of expenses associated with Kenny, including $4.1 million of salaries and related expenses, $1.3 million of incentive compensation and $6.8 million of other general and administrative expenses. The increase in other general and administrative expenses during the six months ended June 30, 2013 was also due to a $1.5 million increase in consulting fees and Kenny integration costs.

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Other Expense

The following table presents the components of other expense for the respective periods:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2013			2012			2013			2012
Interest income	$	380		$	611		$	508		$	1,655
Interest expense	(3,700		)	(2,827		)	(7,345		)	(6,009		)
Equity in income (loss) of affiliates	698			(484		)	275			(1,101		)
Other (expense) income, net	(495		)	(5,018		)	608			1,853
Total other expense	$	(3,117	)	$	(7,718	)	$	(5,954	)	$	(3,602	)

Interest expense during the three and six months ended June 30, 2013 increased $0.9 million and $1.3 million, respectively, when compared to 2012 primarily due to borrowings under Granite’s existing revolving credit facility. Other (expense) income, net for the three and six months ended June 30, 2012 included a $2.8 million non-cash impairment charge associated with our cost method investment in the preferred stock of a corporation that designs and manufactures solar power generation equipment. Other (expense) income, net for the six months ended June 30, 2012 included a $5.3 million gain related to the sale of gold, a by-product of aggregate production.

Income Taxes

The following table presents the provision (benefit from) for income taxes for the respective periods:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2013			2012			2013			2012
Provision for (benefit from) income taxes	$	1,766		$	1,859		$	(7,261	)	$	(1,673	)
Effective tax rate	35.8		%	29.3		%	30.4		%	28.5		%

We calculate our income tax provision at the end of each interim period by estimating our annual effective tax rate and applying that rate to our year-to-date ordinary earnings. The effect of changes in enacted tax laws, tax rates or tax status is recognized in the interim period in which the change occurs.

Our effective tax rate increased to 35.8% and 30.4% for the three and six months ended June 30, 2013, respectively and was 29.3% and 28.5% for the three and six months ended June 30, 2012, respectively. These changes were primarily due to adjusting the effective tax rate to the current estimate of our annual effective tax rate.

Noncontrolling Interests

The following table presents the amount attributable to noncontrolling interests in consolidated subsidiaries for the respective periods:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2013			2012			2013			2012
Amount attributable to noncontrolling interests	$	(448	)	$	(2,538	)	$	(2,603	)	$	(5,624	)

The amount attributable to noncontrolling interests represents the noncontrolling owners’ share of the income or loss of our consolidated construction joint ventures and real estate entities.

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Certain Legal Proceedings

As discussed in Note 15 of “Notes to the Condensed Consolidated Financial Statements”, under certain circumstances the resolution of certain legal proceedings to which we are subject could have direct or indirect consequences that could have a material adverse effect on our financial position, results of operations, cash flows and/or liquidity.

Liquidity and Capital Resources

We believe our cash and cash equivalents, short-term investments and cash expected to be generated from operations will be sufficient to meet our expected working capital needs, capital expenditures, financial commitments, cash dividend payments, and other liquidity requirements associated with our existing operations through the next twelve months. We maintain a collateralized revolving credit facility of $215.0 million, of which $132.0 million was available at June 30, 2013, primarily to provide capital needs to fund growth opportunities, either internally or generated through acquisition (see “Credit Agreement” section below for further discussion). We do not anticipate that this credit facility will be required to fund future working capital needs associated with our existing operations. If we experience a prolonged change in our business operating results or make a significant acquisition, we may need to acquire additional sources of financing, which, if available, may be limited by the terms of our existing debt covenants, or may require the amendment of our existing debt agreements. There can be no assurance that sufficient capital will continue to be available in the future or that it will be available at terms acceptable to us.

The following table presents our cash, cash equivalents and marketable securities, including amounts from our consolidated joint ventures, as of the respective dates:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Cash and cash equivalents excluding consolidated joint ventures	$	184,027	$	216,125	$	170,266
Consolidated construction joint venture cash and cash equivalents1	63,806		105,865		67,685
Total consolidated cash and cash equivalents	247,833		321,990		237,951
Short-term and long-term marketable securities2	76,496		111,430		89,060
Total cash, cash equivalents and marketable securities	$	324,329	$	433,420	$	327,011

¹The volume and stage of completion of contracts from our consolidated construction joint ventures may cause fluctuations in joint venture cash and cash equivalents between periods. These funds generally are not available for the working capital or other liquidity needs of Granite until distributed.

²See Note 3 of “Notes to the Condensed Consolidated Financial Statements” for the composition of our marketable securities.

Our primary sources of liquidity are cash and cash equivalents and marketable securities. We may also from time to time issue and sell equity, debt or hybrid securities or engage in other capital markets transactions.

Our cash and cash equivalents consisted of commercial paper, deposits and money market funds held with established national financial institutions. Marketable securities consist of U.S. Government and agency obligations, commercial paper, municipal bonds and corporate bonds. Cash and cash equivalents held by our consolidated joint ventures represent the working capital needs of each joint venture’s project. The decision to distribute joint venture cash must generally be made jointly by all of the partners and, accordingly, these funds generally are not available for the working capital or other liquidity needs of Granite until distributed.

Our principal uses of liquidity are paying the costs and expenses associated with our operations, servicing outstanding indebtedness, making capital expenditures and paying dividends on our capital stock. We may also from time to time prepay or repurchase outstanding indebtedness, and acquire assets or businesses that are complementary to our operations, such as with the acquisition of Kenny in December 2012.

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Cash Flows	Six Months Ended June 30,
(in thousands)	2013			2012
Net cash (used in) provided by:
Operating activities	$	(51,648	)	$	(34,624	)
Investing activities	17,626			45,400
Financing activities	(40,135		)	(29,815		)

Cash flows from operating activities result primarily from our earnings or losses, and are also impacted by changes in operating assets and liabilities which consist primarily of working capital balances. As a large heavy civil contractor and construction materials producer, our operating cash flows are subject to the seasonality of our business and the cycles associated with winning, performing and closing projects, including the timing related to funding construction joint ventures and the resolution of uncertainties inherent in the complex nature of the work that we perform.

Cash used in operating activities of $51.6 million for the six months ended June 30, 2013 represents a $17.0 million increase from the amount of cash used in operating activities during the same period in 2012. The increase was primarily attributable to the increase in our net loss in the six month period in 2013 to $16.7 million, as compared to the loss of $4.2 million experienced in the same period in 2012. In addition, during the six months ended June 30, 2013, net distributions from unconsolidated construction joint ventures were $17.8 million compared to $15.4 million during the same period in 2012. These net distributions were offset by an unfavorable change in our working capital items in 2013 compared to 2012 consistent with the cyclical nature of our business.

Cash provided by investing activities of $17.6 million for the six months ended June 30, 2013 represents a $27.8 milliondecrease compared to the same period in 2012. The decrease was primarily due to a decrease in net proceeds and maturities of marketable securities during the six months ended June 30, 2013 when compared to 2012. These changes were a result of our cash management activities that are generally based on the Company’s cash flow requirements and/or as investments mature. There were no unusual investing activities related to our cash management practices during the six months ended June 30, 2013.

Cash used in financing activities of $40.1 million for the six months ended June 30, 2013 represents a $10.3 million increase from the amount of cash used in financing activities during the same period in 2012. The increase was driven by a $9.7 million increase in net distributions to noncontrolling partners primarily related to two projects nearing completion in our Large Project Construction segment.

Capital Expenditures

During the six months ended June 30, 2013, we had capital expenditures of $19.4 million compared to $19.9 million during the same period in 2012. Major capital expenditures are typically for aggregate and asphalt production facilities, aggregate reserves, construction equipment, buildings and leasehold improvements and investments in our information technology systems. The timing and amount of such expenditures can vary based on the progress of planned capital projects, the type and size of construction projects, changes in business outlook and other factors. We currently anticipate investing between $45.0 million and $55.0 million in capital expenditures during 2013. During the year ended December 31, 2012, we had capital expenditures of $37.6 million.

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Credit Agreement

We have a $215.0 million committed revolving credit facility, with a sublimit for letters of credit of $100.0 million (the “Credit Agreement”), which expires October 11, 2016, of which $132.0 million was available at June 30, 2013. At June 30, 2013 and December 31, 2012, there was a revolving loan of $70.0 million outstanding under the Credit Agreement related to financing the Kenny acquisition, the balance of which is included in long-term debt on our condensed consolidated balance sheets. In addition, as of June 30, 2013 there were standby letters of credit totaling approximately $13.0 million. The letters of credit will expire between August 2013 and December 2016.

Borrowings under the Credit Agreement bear interest at LIBOR or a base rate (at our option), plus an applicable margin based on certain financial ratios calculated quarterly. LIBOR varies based on the applicable loan term, market conditions and other external factors. The applicable margin is based upon certain financial ratios calculated quarterly. The applicable margin was 2.00% for loans bearing interest based on LIBOR and 1.00% for loans bearing interest at the base rate at June 30, 2013. Accordingly, the effective interest rate was between 2.27% and 4.25% at June 30, 2013. Borrowings at the base rate have no designated term and may be repaid without penalty any time prior to the Credit Agreement’s maturity date. Borrowings at a LIBOR rate have a term no less than one month and no greater than one year. Typically, at the end of such term, such borrowings may be rolled over at our discretion into either a borrowing at the base rate or a borrowing at a LIBOR rate with similar terms, not to exceed the maturity date of the Credit Agreement. Our obligations under the Credit Agreement are guaranteed by certain of our subsidiaries and are collateralized on an equivalent basis with the obligations under the 2019 Notes (defined below) by first priority liens (subject only to other liens permitted under the Credit Agreement) on substantially all of the assets of the Company and our subsidiaries that are guarantors or borrowers under the Credit Agreement.

The Credit Agreement provides for the release of the liens securing the obligations, at our option and expense, after June 30, 2013, so long as certain conditions as defined by the terms in the Credit Agreement are satisfied (“Collateral Release Period”). If, subsequently, our Consolidated Fixed Charge Coverage Ratio is less than 1.25 or our Consolidated Leverage Ratio is greater than 2.50, then we will be required to promptly re-pledge substantially all of the assets of the Company and our subsidiaries that are guarantors or borrowers under the Credit Agreement.

Senior Notes Payable

Senior notes payable in the amount of $200.0 million were due to a group of institutional holders in five equal annual installments beginning in 2015 and bear interest at 6.11% per annum (“2019 Notes”).

Our obligations under the note purchase agreements governing the 2019 Notes (the “2019 NPA”) are guaranteed by certain of our subsidiaries and are collateralized on an equivalent basis with the Credit Agreement by liens on substantially all of the assets of the Company and subsidiaries that are guarantors or borrowers under the Credit Agreement. The 2019 NPA provides for the release of liens and re-pledge of collateral on substantially the same terms and conditions as those set forth in the Credit Agreement.

Surety Bonds and Real Estate Mortgages

We are generally required to provide various types of surety bonds that provide an additional measure of security under certain public and private sector contracts. At June 30, 2013, approximately $2.4 billion of our contract backlog was bonded. Performance bonds do not have stated expiration dates; rather, we are generally released from the bonds after the owner accepts the work performed under contract. The ability to maintain bonding capacity to support our current and future level of contracting requires that we maintain cash and working capital balances satisfactory to our sureties.

A significant portion of our real estate held for development and sale is subject to mortgage indebtedness. All of this indebtedness is non-recourse to Granite but is recourse to the real estate entities that incurred the indebtedness. The terms of this indebtedness are typically renegotiated to reflect the evolving nature of the real estate projects as they progress through acquisition, entitlement and development. Modification of these terms may include changes in loan-to-value ratios requiring the real estate entities to repay portions of the debt. As of June 30, 2013, the principal amount of debt of our real estate entities secured by mortgages was $9.5 million, of which $2.1 million was included in current liabilities and $7.4 million was included in long-term liabilities on our condensed consolidated balance sheet.

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Covenants and Events of Default

The most significant restrictive covenants under the terms of our 2019 NPA and Credit Agreement require the maintenance of a minimum Consolidated Tangible Net Worth, a minimum Consolidated Interest Coverage Ratio and a maximum Consolidated Leverage Ratio. The calculations and terms of such financial covenants are defined in the Credit Agreement filed as Exhibit 10.1 to our Form 10-Q filed November 7, 2012 and in the 2019 NPA filed as Exhibit 10.7 to our Form 10-Q filed November 7, 2012. As of June 30, 2013 and pursuant to the definitions in the agreements, our Consolidated Tangible Net Worth was $720.5 million, which exceeded the minimum of $683.7 million, the Consolidated Interest Coverage Ratio was 10.50, which exceeded the minimum of 4.00 and the Consolidated Leverage Ratio was 1.97, which did not exceed the maximum of 3.25 for the Credit Agreement and the maximum of 3.50 for the 2019 NPA. The maximum Consolidated Leverage Ratio for the Credit Agreement and 2019 NPA decreases to 3.00 and 3.25, respectively, for the quarter ending December 31, 2013, and each quarter ending thereafter. During any Collateral Release Period, the maximum Consolidated Leverage Ratio decreases to 2.50.

Our debt and credit agreements require us to comply with various affirmative, restrictive and financial covenants, including the financial covenants described above. Our failure to comply with any of these covenants, or to pay principal, interest or other amounts when due thereunder, would constitute an event of default under the applicable agreements. Under certain circumstances, the occurrence of an event of default under one of our debt or credit agreements (or the acceleration of the maturity of the indebtedness under one of our agreements) may constitute an event of default under one or more of our other debt or credit agreements. Default under our debt and credit agreements could result in (1) us no longer being entitled to borrow under the agreements, (2) termination of the agreements, (3) the requirement that any letters of credit under the agreements be cash collateralized, (4) acceleration of the maturity of outstanding indebtedness under the agreements and/or (5) foreclosure on any collateral securing the obligations under the agreements.

As of June 30, 2013, we were in compliance with the covenants contained in our 2019 NPA, Credit Agreement and debt agreements related to our consolidated real estate entities. We are not aware of any non-compliance by any of our unconsolidated real estate entities with the covenants contained in their debt agreements. Our compliance with these covenants may be under pressure if our net income further declines, at which point we may elect to take a number of actions, including negotiating with our lenders.

Share Purchase Program

In 2007, our Board of Directors authorized us to purchase up to $200.0 million of our common stock at management’s discretion. As of June 30, 2013, $64.1 million was available for purchase. We did not purchase shares under the share purchase program in any of the periods presented. The specific timing and amount of any future purchases will vary based on market conditions, securities law limitations and other factors. Purchases under the share purchase program may be commenced, suspended or discontinued at any time and from time to time without prior notice. 

Recent Accounting Pronouncements

See Note 1 of the “Notes to the Condensed Consolidated Financial Statements” for a description of recent accounting pronouncements, including the expected dates of adoption and effects on our condensed consolidated balance sheets, statements of operations and statements of cash flows.

Website Access

Our website address is www.graniteconstruction.com. On our website we make available, free of charge, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports as soon as reasonably practicable after such material is electronically filed with or furnished to the U.S. Securities and Exchange Commission. The information on our website is not incorporated into, and is not part of, this report. These reports, and any amendments to them, are also available at the website of the U.S. Securities and Exchange Commission, www.sec.gov.

42

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no significant change in our exposure to market risks since December 31, 2012.

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management carried out, as of June 30, 2013, with the participation of our Chief Executive Officer and our Chief Financial Officer, an evaluation of the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2013, our disclosure controls and procedures were effective to provide reasonable assurance that material information required to be disclosed by us in reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and that information required to be disclosed by us in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

During the second quarter of 2013, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

43

PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

The description of the matters set forth in Part I, Item 1 of this Report under “Note 15 - Legal Proceedings” is incorporated herein by reference.

Item 1A. RISK FACTORS

There have been no material changes in the risk factors previously disclosed in “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the six months ended June 30, 2013, we did not sell any of our equity securities that were not registered under the Securities Act of 1933, as amended. The following table sets forth information regarding the repurchase of shares of our common stock during the three months endedJune 30, 2013:

Period	Total number of shares purchased1	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value of shares that may yet be purchased under the plans or programs2
April 1, 2013 through April 30, 2013	2,526	$	31.12	—	$	64,065,401
May 1, 2013 through May 31, 2013	192	$	31.09	—	$	64,065,401
June 1, 2013 through June 30, 2013	749	$	30.89	—	$	64,065,401
	3,467	$	31.07	—

¹The number of shares purchased is in connection with employee tax withholding for shares/units granted under our Amended and Restated 1999 Equity Incentive Plan.

²In October 2007, our Board of Directors authorized us to purchase, at management’s discretion, up to $200.0 million of our common stock. Under this purchase program, the Company may purchase shares from time to time on the open market or in private transactions. The specific timing and amount of purchases will vary based on market conditions, securities law limitations and other factors. Purchases under the share purchase program may be commenced, suspended or discontinued at any time and from time to time without prior notice. 

Item 3. DEFAULTS UPON SENIOR SECURITIES

None.

Item 4. MINE SAFETY DISCLOSURES

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17CFR 229.104) is included in Exhibit 95 to this Quarterly Report on Form 10-Q.

Item 5. OTHER INFORMATION

Not Applicable.

44

Item 6. EXHIBITS

31.1	†	Certification of Principal Executive Officer
31.2	†	Certification of Principal Financial Officer
32	††	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
95	†	Mine Safety Disclosure
101.INS	†	XBRL Instance Document
101.SCH	†	XBRL Taxonomy Extension Schema
101.CAL	†	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	†	XBRL Taxonomy Extension Definition Linkbase
101.LAB	†	XBRL Taxonomy Extension Label Linkbase
101.PRE	†	XBRL Taxonomy Extension Presentation Linkbase
	†	Filed herewith
	††	Furnished herewith

45

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			GRANITE CONSTRUCTION INCORPORATED
Date:	August 2, 2013	By:	/s/ Laurel J. Krzeminski
			Laurel J. Krzeminski
			Senior Vice President and Chief Financial Officer
			(Principal Financial and Accounting Officer)

46

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, James H. Roberts, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Granite Construction Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	August 2, 2013	/s/ James H. Roberts
		James H. Roberts
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Laurel J. Krzeminski, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Granite Construction Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	August 2, 2013	/s/ Laurel J. Krzeminski
		Laurel J. Krzeminski
		Senior Vice President and Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND

CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of Granite Construction Incorporated (the “Company”) does hereby certify that, to such officers’ knowledge:

(i) The report on Form 10-Q for the quarter ended June 30, 2013 of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the report on Form 10-Q fairly presents in all material respects the financial condition and results of operations of the Company as of and for the periods expressed in the report on Form 10-Q.

Dated:	August 2, 2013	/s/ James H. Roberts
		James H. Roberts
		President and Chief Executive Officer
Dated:	August 2, 2013	/s/ Laurel J. Krzeminski
		Laurel J. Krzeminski
		Senior Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signatures that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Granite Construction Incorporated and will be retained by Granite Construction Incorporated and furnished to the Securities and Exchange Commission or its staff upon request.

EX-95

Exhibit 95

MINE SAFETY DISCLOSURE

We operate surface mines in the western United States to produce construction aggregates. The operation of our mines is subject to regulation by the federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). MSHA conducted 23 and 20 inspections at 21 and 19 of our mines during the three months ended June 30, 2013 and 2012, respectively. There were no reportable citations or orders following 20 and 16 of those inspections during the three months ended June 30, 2013 and 2012, respectively. The chart below presents the total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a coal or other mine safety or health hazard under Section 104 of the Mine Act for which the operator received a citation from the MSHA during the three months ended June 30, 2013 and 2012. With respect to this information, it should be noted that: (i) the number of citations and orders will vary depending on the size of the mine, (ii) the number of citations issued will vary from inspector to inspector and mine to mine, and (iii) citations and orders can be contested and appealed, and in that process, may be reduced in severity and amount or dismissed.

	Three Months Ended June 30,
Name of Mine	2013	2012
Bradshaw	3	2
Freeman Quarry	—	2
Indio	—	1
Vernalis Plant	—	2
Total	3	7

During the three months ended June 30, 2013 and 2012, with respect to our mines:

• MSHA did not issue any orders requiring persons to be withdrawn from the areas affected by the alleged violations of mandatory health or safety standards under Section 104(b) of the Mine Act.

• MSHA did not issue any citations or orders for unwarrantable failure of the mine operator to comply with mandatory health or safety standards under section104(d) of the Mine Act.

• MSHA did not identify any flagrant violations under Section 110(b)(2) of the Mine Act.

• MSHA did not issue any imminent danger orders requiring immediate withdrawal from the affected areas under Section 107(a) of the Mine Act.

• We did not experience any mining-related fatalities.

• We did not receive written notice of a pattern of violations of mandatory health or safety standards from MSHA under Section 104(e) of the Mine Act or of the potential to have a pattern of violations of mandatory health or safety standards from MSHA.

• There were no legal actions pending before the Federal Mine Safety and Health Review Commission, and there were no such legal actions instituted or resolved.

• Proposed assessments from the MSHA during the three months ended June 30, 2013 and 2012 were $500 and $5,868, respectively.

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Covenants and Events of Default

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Long-Term Debt and Credit Arrangements

Covenants and Events of Default

Our debt and credit agreements require us to comply with various affirmative, restrictive and financial covenants. Our failure to comply with any of these covenants, or to pay principal, interest or other amounts when due thereunder, would constitute an event of default under the applicable agreements. Under certain circumstances, the occurrence of an event of default under one of our debt or credit agreements (or the acceleration of the maturity of the indebtedness under one of our agreements) may constitute an event of default under one or more of our other debt or credit agreements. Default under our debt and credit agreements could result in (1) us no longer being entitled to borrow under the agreements, (2) termination of the agreements, (3) the requirement that any letters of credit under the agreements be cash collateralized, (4) acceleration of the maturity of outstanding indebtedness under the agreements and/or (5) foreclosure on any collateral securing the obligations under the agreements.

As of June 30, 2013, we were in compliance with the covenants contained in our note purchase agreements governing our senior notes payable, Credit Agreement and debt agreements related to our consolidated real estate entities. We are not aware of any non-compliance by any of our unconsolidated real estate entities with the covenants contained in their debt agreements.

XML

Intangible Assets - Finite Lived Intangible Assets (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
Total amortized intangible assets, Gross Value	$ 48,570,000	$ 34,370,000	$ 48,570,000	$ 34,370,000	$ 49,370,000
Total amortized intangible assets, Accumulated Amortization	(19,784,000)	(13,744,000)	(19,784,000)	(13,744,000)	(15,319,000)
Total amortized intangible assets, Net Value	28,786,000	20,626,000	28,786,000	20,626,000	34,051,000
Amortization expense	2,300,000	1,000,000	4,500,000	2,100,000
Future amortization expense, Remainder of Fiscal Year	4,800,000		4,800,000
Future amortization expense, Year One	2,200,000		2,200,000
Future amortization expense, Year Two	2,100,000		2,100,000
Future amortization expense, Year Three	1,800,000		1,800,000
Future amortization expense, Year Four	1,800,000		1,800,000
Future amortization expense, after Year Four	16,100,000		16,100,000
Permits [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortized intangible assets, Gross Value	29,713,000	29,713,000	29,713,000	29,713,000	29,713,000
Total amortized intangible assets, Accumulated Amortization	(11,430,000)	(9,494,000)	(11,430,000)	(9,494,000)	(10,869,000)
Total amortized intangible assets, Net Value	18,283,000	20,219,000	18,283,000	20,219,000	18,844,000
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortized intangible assets, Gross Value	4,398,000	2,198,000	4,398,000	2,198,000	4,698,000
Total amortized intangible assets, Accumulated Amortization	(2,344,000)	(2,056,000)	(2,344,000)	(2,056,000)	(2,170,000)
Total amortized intangible assets, Net Value	2,054,000	142,000	2,054,000	142,000	2,528,000
Covenants not to compete [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortized intangible assets, Gross Value	1,588,000	1,588,000	1,588,000	1,588,000	1,588,000
Total amortized intangible assets, Accumulated Amortization	(1,550,000)	(1,536,000)	(1,550,000)	(1,536,000)	(1,546,000)
Total amortized intangible assets, Net Value	38,000	52,000	38,000	52,000	42,000
Order or Production Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortized intangible assets, Gross Value	7,900,000		7,900,000		7,900,000
Total amortized intangible assets, Accumulated Amortization	(3,447,000)		(3,447,000)		0
Total amortized intangible assets, Net Value	4,453,000		4,453,000		8,400,000
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortized intangible assets, Gross Value	4,100,000		4,100,000		4,100,000
Total amortized intangible assets, Accumulated Amortization	(216,000)		(216,000)		0
Total amortized intangible assets, Net Value	3,884,000		3,884,000		4,100,000
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortized intangible assets, Gross Value	871,000	871,000	871,000	871,000	871,000
Total amortized intangible assets, Accumulated Amortization	(797,000)	(658,000)	(797,000)	(658,000)	(734,000)
Total amortized intangible assets, Net Value	74,000	213,000	74,000	213,000	137,000
Scenario, Previously Reported [Member] | Order or Production Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortized intangible assets, Gross Value					$ 8,400,000

XML

CONSOLIDATED BALANCE SHEETS Consolidated Balance Sheets Parenthetical (Equity) (USD $)	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012
Statement of Financial Position [Abstract]
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	3,000,000	3,000,000	3,000,000
Preferred Stock, Shares Outstanding	0	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01	$ 0.01
Common Stock, Shares Authorized	150,000,000	150,000,000	150,000,000
Common Stock, Shares, Issued	38,852,463	38,730,665	38,684,540
Common Stock, Shares, Outstanding	38,852,463	38,730,665	38,684,540

XML

Fair Value Measurement

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Measurement

Fair value accounting standards describe three levels that may be used to measure fair value:

• Level 1 - Quoted prices in active markets for identical assets or liabilities.

• Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following tables summarize assets and liabilities measured at fair value in the condensed consolidated balance sheets on a recurring basis for each of the fair value levels:

June 30, 2013	Fair Value Measurement at Reporting Date Using
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	144,605	$	—	$	—	$	144,605
Total assets	$	144,605	$	—	$	—	$	144,605

December 31, 2012	Fair Value Measurement at Reporting Date Using
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	201,542	$	—	$	—	$	201,542
Held-to-maturity commercial paper	5,000		—		—		5,000
Total assets	$	206,542	$	—	$	—	$	206,542

June 30, 2012	Fair Value Measurement at Reporting Date Using
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	167,427	$	—	$	—	$	167,427
Held-to-maturity commercial paper	4,997		—		—		4,997
Total assets	$	172,424	$	—	$	—	$	172,424

A reconciliation of cash equivalents to consolidated cash and cash equivalents is as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Cash equivalents	$	144,605	$	206,542	$	172,424
Cash	103,228		115,448		65,527
Total cash and cash equivalents	$	247,833	$	321,990	$	237,951

The carrying values and estimated fair values of our financial instruments that are not required to be measured at fair value in the condensed consolidated balance sheets are as follows: 

		June 30, 2013				December 31, 2012				June 30, 2012
(in thousands)	Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Held-to-maturity marketable securities1	Level 1	$	76,496	$	76,100	$	111,430	$	111,525	$	89,060	$	89,239
Liabilities (including current maturities):
Senior notes payable2	Level 3	$	200,000	$	227,902	$	208,333	$	243,118	$	208,333	$	239,443
Credit Agreement loan2	Level 3	70,000		69,321		70,000		70,444		—		—

¹Held-to-maturity marketable securities are periodically assessed for other-than-temporary impairment.

²The fair values of the senior notes payable and Credit Agreement loan are based on borrowing rates available to us for long-term loans with similar terms, average maturities, and credit risk.

The carrying values of receivables, other current assets, and accrued expenses and other current liabilities approximate their fair values due to the short-term nature of these instruments. In addition, the fair value of non-recourse debt measured using Level 3 inputs approximates its carrying value due to its relative short-term nature and competitive interest rates. During the three and six months ended June 30, 2013 and 2012, we did not record any significant fair value adjustments related to nonfinancial assets and liabilities measured at fair value on a nonrecurring basis.

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Revisions in Estimates Revisions in Estimates (Policies)

6 Months Ended

Jun. 30, 2013

Revisions in Estimates [Abstract]

Revision in Estimate Method [Policy Text Block]

Our profit recognition related to construction contracts is based on estimates of costs to complete each project. These estimates can vary in the normal course of business as projects progress and uncertainties are resolved. We do not recognize revenue on contract change orders or claims until we have a signed agreement; however, we do recognize costs as incurred and revisions to estimated total costs as soon as the obligation to perform is determined. Approved change orders and claims, as well as changes in related estimates of costs to complete, are considered revisions in estimates. We use the cumulative catch-up method applicable to construction contract accounting to account for revisions in estimates. Under this method, revisions in estimates are accounted for in their entirety in the period of change.

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Weighted Average Shares Outstanding (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013		Jun. 30, 2012
Weighted Average Number of Shares Outstanding, Basic [Abstract]
Weighted average common stock outstanding	38,829,000	38,664,000	38,782,000		38,666,000
Less: weighted average unvested restricted stock outstanding	0	193,000	62,000		298,000
Weighted Average Number of Shares Outstanding, Basic	38,829,000	38,471,000	38,720,000		38,368,000
Effect of dilutive securities:
Stock options and restricted units excluded from calculation	940,000	680,000	0	[1]	0	[1]
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Weighted average common stock outstanding, basic	38,829,000	38,471,000	38,720,000		38,368,000
Effect of dilutive securities:
Stock options and restricted units excluded from calculation	940,000	680,000	0	[1]	0	[1]
Total weighted average shares outstanding assuming dilution	39,769,000	39,151,000	38,720,000		38,368,000
Antidilutive Securities Excluded from Computation of Earnings Per Share			851,000		580,000

[1] 1Due to the net loss for the six months ended June 30, 2013 and 2012, restricted stock units and common stock options representing approximately 851,000 and 580,000 shares, respectively, have been excluded from the number of shares used in calculating diluted net loss per share for the respective periods, as their inclusion would be antidilutive.

XML

Weighted Average Shares Outstanding

6 Months Ended

Jun. 30, 2013

Weighted Average Number of Shares Outstanding Reconciliation [Abstract]

Weighted Average Shares Outstanding

Weighted Average Shares Outstanding

A reconciliation of the weighted average shares outstanding used in calculating basic and diluted net income (loss) per share in the accompanying condensed consolidated statements of operations is as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2013	2012	2013	2012
Weighted average shares outstanding:
Weighted average common stock outstanding	38,829	38,664	38,782	38,666
Less: weighted average unvested restricted stock outstanding	—	193	62	298
Total basic weighted average shares outstanding	38,829	38,471	38,720	38,368
Diluted weighted average shares outstanding:
Weighted average common stock outstanding, basic	38,829	38,471	38,720	38,368
Effect of dilutive securities:
Common stock options and restricted stock units1	940	680	—	—
Total weighted average shares outstanding assuming dilution	39,769	39,151	38,720	38,368

¹Due to the net loss for the six months ended June 30, 2013 and 2012, restricted stock units and common stock options representing approximately 851,000 and 580,000 shares, respectively, have been excluded from the number of shares used in calculating diluted net loss per share for the respective periods, as their inclusion would be antidilutive.

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Construction and Line Item Joint Ventures - Unconsolidated Construction Joint Ventures (Details) (USD $)	3 Months Ended				6 Months Ended
	Jun. 30, 2013		Jun. 30, 2012		Jun. 30, 2013		Jun. 30, 2012		Dec. 31, 2012
Construction Joint Venture [Line Items]
Equity in construction joint ventures	$ 148,727,000		$ 107,821,000		$ 148,727,000		$ 107,821,000		$ 105,805,000
Equity in Construction Joint Ventures Current Assets Excluding Deficit in Equity	148,494,000	[1]			148,494,000	[1]			105,572,000	[1]
Deficit in unconsolidatedconstruction joint venture	200,000				200,000				233,000
Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Number of Active Joint Venture Projects	5				5
Partnership Interest [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Revenue Remaining to be Recognized on Unconsolidated Construction Joint Ventures	5,100,000,000				5,100,000,000
Joint Venture Consolidated [Member] | Consolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Number of Active Joint Venture Projects	4				4
Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Number of Active Joint Venture Projects	12				12
Unconsolidated Construction Joint Venture Revenue	259,255,000		284,095,000	[2]	484,558,000		489,926,000	[2]
Unconsolidated Construction Joint Venture Cost of Revenue	212,779,000		227,389,000	[2]	371,475,000		397,001,000	[2]
Reporting Entitys Interest in Joint Venture [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Unconsolidated Construction Joint Venture Assets	269,571,000		245,707,000		269,571,000		245,707,000		203,553,000
Unconsolidated Construction Joint Venture Liabilities	121,077,000		137,886,000		121,077,000		137,886,000		97,981,000
Unconsolidated Construction Joint Venture Revenue	86,599,000		100,234,000		158,197,000		173,862,000
Unconsolidated Construction Joint Venture Cost of Revenue	71,120,000		77,298,000		122,495,000		137,670,000
Unconsolidated Construction Joint Venture Gross Profit Loss	15,479,000		22,936,000		35,702,000		36,192,000
Revenue Remaining to be Recognized on Unconsolidated Construction Joint Ventures	1,400,000,000				1,400,000,000
Other Partners Interest in Partnerships [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Unconsolidated Construction Joint Venture Assets	512,775,000		392,139,000		512,775,000		392,139,000		342,545,000
Unconsolidated Construction Joint Venture Liabilities	282,521,000		238,234,000		282,521,000		238,234,000		183,432,000
Unconsolidated Construction Joint Venture Revenue	172,656,000	[3]	183,861,000	[2],[3]	326,361,000	[3]	316,064,000	[2],[3]
Unconsolidated Construction Joint Venture Cost of Revenue	141,659,000	[3]	150,091,000	[2],[3]	248,980,000	[3]	259,331,000	[2],[3]
Revenue Remaining to be Recognized on Unconsolidated Construction Joint Ventures	3,700,000,000				3,700,000,000
Minimum [Member] | Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Revenue Per Project Remaining to be Recognized on Line Item Construction Joint Ventures	300,000				300,000
Minimum [Member] | Joint Venture Consolidated [Member] | Consolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	400,000				400,000
Proportionate Share of the Consolidated Joint Ventures Equity Owned by or Beneficial Interest in the Reporting Entity Directly or Indirectly	51.00%				51.00%
Minimum [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	40,300,000				40,300,000
Proportionate Share of the Consolidated Joint Ventures Equity Owned by or Beneficial Interest in the Reporting Entity Directly or Indirectly	20.00%				20.00%
Minimum [Member] | Joint Venture Unconsolidated [Member] | Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	42,200,000				42,200,000
Minimum [Member] | Reporting Entitys Interest in Joint Venture [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Revenue Remaining to be Recognized on Unconsolidated Construction Joint Ventures	300,000				300,000
Minimum [Member] | Reporting Entitys Interest in Joint Venture [Member] | Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	25,100,000				25,100,000
Maximum [Member] | Joint Venture Consolidated [Member] | Consolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	336,900,000				336,900,000
Proportionate Share of the Consolidated Joint Ventures Equity Owned by or Beneficial Interest in the Reporting Entity Directly or Indirectly	65.00%				65.00%
Maximum [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	3,100,000,000				3,100,000,000
Proportionate Share of the Consolidated Joint Ventures Equity Owned by or Beneficial Interest in the Reporting Entity Directly or Indirectly	50.00%				50.00%
Maximum [Member] | Joint Venture Unconsolidated [Member] | Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	138,200,000				138,200,000
Revenue Per Project Remaining to be Recognized on Line Item Construction Joint Ventures	23,800,000				23,800,000
Maximum [Member] | Reporting Entitys Interest in Joint Venture [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Revenue Remaining to be Recognized on Unconsolidated Construction Joint Ventures	722,900,000				722,900,000
Maximum [Member] | Reporting Entitys Interest in Joint Venture [Member] | Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	59,500,000				59,500,000
Cash and Cash Equivalents [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Unconsolidated Construction Joint Venture Assets	342,534,000	[4]	337,102,000	[4]	342,534,000	[4]	337,102,000	[4]	244,686,000	[4]
Other Assets, Current and Longterm [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Unconsolidated Construction Joint Venture Assets	439,812,000		300,744,000		439,812,000		300,744,000		301,412,000
Accounts Payable [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Unconsolidated Construction Joint Venture Liabilities	115,606,000		101,782,000		115,606,000		101,782,000		114,039,000
Billings in Excess of Costs and Estimated Earnings [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Unconsolidated Construction Joint Venture Liabilities	262,259,000	[4]	265,883,000	[4]	262,259,000	[4]	265,883,000	[4]	161,268,000	[4]
Accrued Liabilities [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Unconsolidated Construction Joint Venture Liabilities	25,733,000		8,455,000		25,733,000		8,455,000		6,106,000
Scenario, Previously Reported [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Unconsolidated Construction Joint Venture Revenue			663,536,000				869,368,000
Unconsolidated Construction Joint Venture Cost of Revenue			544,838,000				714,450,000
Scenario, Previously Reported [Member] | Other Partners Interest in Partnerships [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Unconsolidated Construction Joint Venture Revenue			563,302,000				695,505,000
Unconsolidated Construction Joint Venture Cost of Revenue			$ 467,540,000				$ 576,780,000

[1] As of June 30, 2013 and December 31, 2012, this balance included $0.2 million of deficit in unconsolidated construction joint ventures that is included in accrued expenses and other current liabilities on the condensed consolidated balance sheets.

[2] 1While Granite’s interest in revenue, cost of revenue and gross profit were correctly stated, total and partners’ interest for revenue and cost of revenue for the three and six month periods ended June 30, 2012 were inadvertently misstated in our Quarterly Report for the quarter ended June 30, 2012. Total revenue, partner’s interest in revenue, total cost of revenue and partners’ interest in cost of revenue reported were (in thousands): $663,536, $563,302, $544,838 and $467,540, respectively, for the three months ended June 30, 2012, and $869,368, $695,505, $714,450 and $576,780, respectively, for the six months ended June 30, 2012.

[3] Partners’ interest represents amounts to reconcile total revenue and total cost of revenue as reported by our partners to Granite’s interest, adjusted to reflect our accounting policies.

[4] The volume and stage of completion of contracts from our unconsolidated construction joint ventures may cause fluctuations in cash and cash equivalents, as well as billings in excess of costs and estimated earnings between periods. The decision to distribute joint venture cash and cash equivalents and assets must generally be made jointly by all of the partners and, accordingly, these cash and cash equivalents and assets generally are not available for the working capital needs of Granite until distributed.

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Earnings Per Share Earnings Per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share [Abstract]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 3,166	$ 4,487	$ (16,661)	$ (4,200)
Earnings Per Share, Basic, Two Class Method [Abstract]
Net income (loss) attributable to Granite, Earnings per share, Basic	2,718	1,949	(19,264)	(9,824)
Participating Securities, Distributed and Undistributed Earnings	0	10	0	0
Net Income (Loss) Available to Common Stockholders, Basic	2,718	1,939	(19,264)	(9,824)
Weighted Average Number of Shares Outstanding, Basic	38,829	38,471	38,720	38,368
Earnings (Loss) Per Share, Basic	$ 0.07	$ 0.05	$ (0.50)	$ (0.26)
Earnings Per Share, Diluted, Two Class Method [Abstract]
Net income (loss) attributable to Granite, Earnings per share, Diluted	2,718	1,949	(19,264)	(9,824)
Undistributed Earnings Allocated to Participating Securities	0	10	0	0
Net Income (Loss) Available to Common Stockholders, Diluted	$ 2,718	$ 1,939	$ (19,264)	$ (9,824)
Weighted Average Number of Shares Outstanding, Diluted	39,769	39,151	38,720	38,368
Earnings (Loss) Per Share, Diluted	$ 0.07	$ 0.05	$ (0.50)	$ (0.26)

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Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

Summarized segment information is as follows:

	Three Months Ended June 30,
(in thousands)	Construction		Large Project Construction		Construction Materials			Real Estate		Total
2013
Total revenue from reportable segments	$	308,602	$	181,371	$	97,872		$	4	$	587,849
Elimination of intersegment revenue	—		—		(37,687		)	—		(37,687		)
Revenue from external customers	308,602		181,371		60,185			4		550,162
Gross profit	25,154		22,088		3,954			1		51,197
Depreciation, depletion and amortization	6,033		3,182		5,891			—		15,106
2012
Total revenue from reportable segments	$	245,113	$	228,799	$	115,852		$	2,354	$	592,118
Elimination of intersegment revenue	—		—		(52,503		)	—		(52,503		)
Revenue from external customers	245,113		228,799		63,349			2,354		539,615
Gross profit	17,961		28,239		5,000			716		51,916
Depreciation, depletion and amortization	3,233		909		7,179			—		11,321

	Six Months Ended June 30,
(in thousands)	Construction		Large Project Construction		Construction Materials			Real Estate		Total
2013
Total revenue from reportable segments	$	485,720	$	353,086	$	136,261		$	125	$	975,192
Elimination of intersegment revenue	—		—		(46,326		)	—		(46,326		)
Revenue from external customers	485,720		353,086		89,935			125		928,866
Gross profit (loss)	38,353		44,808		(2,020		)	112		81,253
Depreciation, depletion and amortization	11,692		5,158		11,456			—		28,306
Segment assets	161,524		206,778		351,295			50,697		770,294
2012
Total revenue from reportable segments	$	363,059	$	392,727	$	146,861		$	5,017	$	907,664
Elimination of intersegment revenue	—		—		(57,889		)	—		(57,889		)
Revenue from external customers	363,059		392,727		88,972			5,017		849,775
Gross profit (loss)	26,541		50,488		(950		)	773		76,852
Depreciation, depletion and amortization	6,813		2,177		14,557			—		23,547
Segment assets	110,119		119,652		365,690			57,367		652,828

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

A reconciliation of segment gross profit to consolidated income (loss) before provision for (benefit from) income taxes is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2013			2012			2013			2012
Total gross profit from reportable segments	$	51,197		$	51,916		$	81,253		$	76,852
Selling, general and administrative expenses	46,454			40,806			104,112			85,882
Gain on restructuring	—			—			497			1,888
Gain on sales of property and equipment	3,306			2,954			4,394			4,871
Total other expense	(3,117		)	(7,718		)	(5,954		)	(3,602		)
Income (loss) before provision for (benefit from) income taxes	$	4,932		$	6,346		$	(23,922	)	$	(5,873	)

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Revisions in Estimates (Tables)

6 Months Ended

Jun. 30, 2013

Construction [Member]

Change in Accounting Estimate [Line Items]

Schedule of Change in Accounting Estimate

The projects are summarized as follows:

Increases

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)			2013		2012		2013		2012
Number of projects with upward estimate changes			1		1		2		3
Range of increase in gross profit from each project, net		$	1.6	$	1.4	$	1.4 - 1.7	$	1.1 - 3.2
Increase to project profitability		$	1.6	$	1.4	$	3.1	$	5.4

Decreases

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)			2013		2012		2013		2012
Number of projects with downward estimate changes			1		2		2		2
Range of reduction in gross profit from each project, net		$	2.1	$	1.1 - 1.9	$	1.0 - 2.4	$	1.4 - 4.8
Decrease to project profitability		$	2.1	$	3.0	$	3.4	$	6.2

Large Project Construction [Member]

Change in Accounting Estimate [Line Items]

Schedule of Change in Accounting Estimate

Decreases

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)			2013		2012		2013		2012
Number of projects with downward estimate changes			2		1		2		2
Range of reduction in gross profit from each project, net		$	2.8 - 4.3	$	5.6	$	5.2 - 8.8	$	1.5 - 7.9
Decrease to project profitability		$	7.1	$	5.6	$	14.0	$	9.4

The projects are summarized as follows:

Increases

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)			2013		2012		2013		2012
Number of projects with upward estimate changes			5		6		5		6
Range of increase in gross profit from each project, net		$	1.3 - 8.3	$	1.2 - 3.6	$	1.5 - 16.1	$	1.4 - 5.2
Increase to project profitability		$	15.8	$	14.9	$	31.9	$	23.1

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Real Estate Entities and Investments in Affiliates Real Estate Entities and Investments in Affiliates (Policies)

6 Months Ended

Jun. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidation, Variable Interest Entity, Policy [Policy Text Block]

We have determined that certain of these joint ventures are consolidated because they are variable interest entities (“VIEs”) and we are the primary beneficiary, or because they are not VIEs and we hold the majority voting interest. The factors we consider in determining whether we are a VIE’s primary beneficiary include the decision authority of each partner, which partner manages the day-to-day operations of the project and the amount of our equity investment in relation to that of our partners. Based on our initial primary beneficiary analysis for one construction joint venture, we determined that decision making responsibility is shared between the venture partners. Therefore, this joint venture did not have an identifiable primary beneficiary partner and we continue to report the pro rata results. All other joint ventures were assigned one primary beneficiary partner.

We continually evaluate whether there are changes in the status of the VIE’s or changes to the primary beneficiary designation of the VIE. Based on our assessments during the six months ended June 30, 2013 and 2012, we determined no change was required to the accounting for existing construction joint ventures.

We have determined that certain of these joint ventures are consolidated because they are VIEs and we are the primary beneficiary. The factors we consider in determining whether we are a VIE’s primary beneficiary include the decision authority of each partner, which partner manages the day-to-day operations of the project and the amount of our equity investment in relation to that of our partners.

We continually evaluate whether there are changes in the status of the VIE’s or changes to the primary beneficiary designation of the VIE. Based on our assessments during the six months ended June 30, 2013 and 2012, we determined no change was required for existing real estate entities.

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Receivables, Net (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	$ 339,011,000	$ 328,278,000	$ 275,603,000
Allowance for Accounts, Notes, Loans and Financing Receivable, Current	2,593,000	2,749,000	3,041,000
Receivables, net	336,418,000	325,529,000	272,562,000
Notes, Loans and Financing Receivable, Net, Noncurrent	1,600,000	2,000,000	1,900,000
Construction Contracts [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	283,776,000	289,044,000	212,774,000
Completed and in Progress [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	207,488,000	195,244,000	146,509,000
Retentions [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	76,288,000	93,800,000	66,265,000
Escrow [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	31,892,000	41,494,000	42,421,000
Non Escrow [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	44,396,000	52,306,000	23,844,000
Financing Receivable, Recorded Investment, Aging [Abstract]
Non-escrow retention receivable - current	33,811,000	44,317,000	18,991,000
Non-escrow retention receivable - 1 to 90 days past due	2,985,000	2,372,000	1,626,000
Non-escrow retention receivable - over 90 days past due	7,600,000	5,617,000	3,227,000
Construction Material Sales [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	43,535,000	26,918,000	50,205,000
Other Business Products and Services [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	11,700,000	12,316,000	12,624,000
Federal [Member] | Non Escrow [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	3,325,000	3,234,000	2,464,000
Financing Receivable, Recorded Investment, Aging [Abstract]
Non-escrow retention receivable - current	2,551,000	3,116,000	1,746,000
Non-escrow retention receivable - 1 to 90 days past due	236,000	72,000	0
Non-escrow retention receivable - over 90 days past due	538,000	46,000	718,000
State [Member] | Non Escrow [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	2,757,000	2,971,000	4,626,000
Financing Receivable, Recorded Investment, Aging [Abstract]
Non-escrow retention receivable - current	1,327,000	2,148,000	3,552,000
Non-escrow retention receivable - 1 to 90 days past due	619,000	502,000	208,000
Non-escrow retention receivable - over 90 days past due	811,000	321,000	866,000
Local [Member] | Non Escrow [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	32,500,000	31,559,000	9,944,000
Financing Receivable, Recorded Investment, Aging [Abstract]
Non-escrow retention receivable - current	25,362,000	25,743,000	7,330,000
Non-escrow retention receivable - 1 to 90 days past due	1,496,000	1,082,000	1,326,000
Non-escrow retention receivable - over 90 days past due	5,642,000	4,734,000	1,288,000
Private [Member] | Non Escrow [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	5,814,000	14,542,000	6,810,000
Financing Receivable, Recorded Investment, Aging [Abstract]
Non-escrow retention receivable - current	4,571,000	13,310,000	6,363,000
Non-escrow retention receivable - 1 to 90 days past due	634,000	716,000	92,000
Non-escrow retention receivable - over 90 days past due	$ 609,000	$ 516,000	$ 355,000

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Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill [Table Text Block]

The following table presents the goodwill balance by reporting segment:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Construction	$	28,300	$	29,190	$	6,936
Large Project Construction	23,184		24,115		850
Construction Materials	2,114		2,114		2,114
Total goodwill	$	53,598	$	55,419	$	9,900

Schedule of Finite-Lived Intangible Assets by Major Class

Amortized Intangible Assets:

Following is the breakdown of our amortized intangible assets that are included in other noncurrent assets on our condensed consolidated balance sheets:

June 30, 2013			Accumulated
(in thousands)	Gross Value		Amortization			Net Book Value
Permits	$	29,713	$	(11,430	)	$	18,283
Customer lists	4,398		(2,344		)	2,054
Covenants not to compete	1,588		(1,550		)	38
Acquired backlog	7,900		(3,447		)	4,453
Trade name	4,100		(216		)	3,884
Other	871		(797		)	74
Total amortized intangible assets	$	48,570	$	(19,784	)	$	28,786

December 31, 2012
(in thousands)
Permits	$	29,713	$	(10,869	)	$	18,844
Customer lists	4,698		(2,170		)	2,528
Covenants not to compete	1,588		(1,546		)	42
Acquired backlog	8,400		—			8,400
Trade name	4,100		—			4,100
Other	871		(734		)	137
Total amortized intangible assets	$	49,370	$	(15,319	)	$	34,051

June 30, 2012
(in thousands)
Permits	$	29,713	$	(9,494	)	$	20,219
Customer lists	2,198		(2,056		)	142
Covenants not to compete	1,588		(1,536		)	52
Other	871		(658		)	213
Total amortized intangible assets	$	34,370	$	(13,744	)	$	20,626

XML

Revisions in Estimates (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Change in Accounting Estimate [Line Items]
Financial Effect on Future Periods	$ 0		$ 0
Amount Considered Significant on Individual Project Gross Profit	1,000,000.0	1,000,000.0	1,000,000.0	1,000,000.0
Construction [Member]
Change in Accounting Estimate [Line Items]
Increase (Decrease) on Project Profitability		(1,600,000)		(800,000)
Contracts Accounted for under Percentage of Completion [Member] | Construction [Member]
Change in Accounting Estimate [Line Items]
Increase (Decrease) on Project Profitability	(500,000)		(300,000)
Contracts Accounted for under Percentage of Completion [Member] | Large Project Construction [Member]
Change in Accounting Estimate [Line Items]
Increase (Decrease) on Project Profitability	8,700,000	9,300,000	17,900,000	13,700,000
Contracts Accounted for under Percentage of Completion [Member] | Large Project Construction [Member] | Noncontrolling Interest [Member]
Change in Accounting Estimate [Line Items]
Increase (Decrease) on Project Profitability	400,000	400,000	1,400,000	900,000
Upward Estimate Change [Member] | Construction [Member]
Change in Accounting Estimate [Line Items]
Number of Projects with Estimate Changes	1	1	2	3
Increase (Decrease) on Project Profitability	1,600,000	1,400,000	3,100,000	5,400,000
Upward Estimate Change [Member] | Construction [Member] | Minimum [Member]
Change in Accounting Estimate [Line Items]
Range Of Effect On Gross Profit	1,600,000	1,400,000	1,400,000	1,100,000
Upward Estimate Change [Member] | Construction [Member] | Maximum [Member]
Change in Accounting Estimate [Line Items]
Range Of Effect On Gross Profit	1,600,000	1,400,000	1,700,000	3,200,000
Upward Estimate Change [Member] | Large Project Construction [Member]
Change in Accounting Estimate [Line Items]
Number of Projects with Estimate Changes	5	6	5	6
Increase (Decrease) on Project Profitability	15,800,000	14,900,000	31,900,000	23,100,000
Upward Estimate Change [Member] | Large Project Construction [Member] | Minimum [Member]
Change in Accounting Estimate [Line Items]
Range Of Effect On Gross Profit	1,300,000	1,200,000	1,500,000	1,400,000
Upward Estimate Change [Member] | Large Project Construction [Member] | Maximum [Member]
Change in Accounting Estimate [Line Items]
Range Of Effect On Gross Profit	8,300,000	3,600,000	16,100,000	5,200,000
Downward Estimate Change [Member] | Construction [Member]
Change in Accounting Estimate [Line Items]
Number of Projects with Estimate Changes	1	2	2	2
Increase (Decrease) on Project Profitability	(2,100,000)	(3,000,000)	(3,400,000)	(6,200,000)
Downward Estimate Change [Member] | Construction [Member] | Minimum [Member]
Change in Accounting Estimate [Line Items]
Range Of Effect On Gross Profit	(2,100,000)	(1,100,000)	(1,000,000)	(1,400,000)
Downward Estimate Change [Member] | Construction [Member] | Maximum [Member]
Change in Accounting Estimate [Line Items]
Range Of Effect On Gross Profit	(2,100,000)	(1,900,000)	(2,400,000)	(4,800,000)
Downward Estimate Change [Member] | Large Project Construction [Member]
Change in Accounting Estimate [Line Items]
Number of Projects with Estimate Changes	2	1	2	2
Increase (Decrease) on Project Profitability	(7,100,000)	(5,600,000)	(14,000,000)	(9,400,000)
Downward Estimate Change [Member] | Large Project Construction [Member] | Minimum [Member]
Change in Accounting Estimate [Line Items]
Range Of Effect On Gross Profit	(2,800,000)	(5,600,000)	(5,200,000)	(1,500,000)
Downward Estimate Change [Member] | Large Project Construction [Member] | Maximum [Member]
Change in Accounting Estimate [Line Items]
Range Of Effect On Gross Profit	$ (4,300,000)	$ (5,600,000)	$ (8,800,000)	$ (7,900,000)

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Real Estate Entities and Investments in Affiliates - Consolidated Real Estate Entities (Details) (USD $)				6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012	Jun. 30, 2013 Real Estate Segment [Member] Real Estate Entities [Member] Variable Interest Entity, Primary Beneficiary [Member]	Jun. 30, 2012 Real Estate Segment [Member] Real Estate Entities [Member] Variable Interest Entity, Primary Beneficiary [Member]	Jun. 30, 2013 Real Estate Segment [Member] Subsidiaries [Member]	Jun. 30, 2012 Real Estate Segment [Member] Subsidiaries [Member]	Jun. 30, 2013 Real Estate Segment [Member] Joint Venture Consolidated [Member] Real Estate Entities [Member] Variable Interest Entity, Primary Beneficiary [Member]	Dec. 31, 2012 Real Estate Segment [Member] Joint Venture Consolidated [Member] Real Estate Entities [Member] Variable Interest Entity, Primary Beneficiary [Member]	Jun. 30, 2012 Real Estate Segment [Member] Joint Venture Consolidated [Member] Real Estate Entities [Member] Variable Interest Entity, Primary Beneficiary [Member]	Jun. 30, 2013 Real Estate Segment [Member] Joint Venture Consolidated [Member] WASHINGTON Real Estate Entities [Member] Variable Interest Entity, Primary Beneficiary [Member]	Dec. 31, 2012 Real Estate Segment [Member] Joint Venture Consolidated [Member] WASHINGTON Real Estate Entities [Member] Variable Interest Entity, Primary Beneficiary [Member]	Jun. 30, 2012 Real Estate Segment [Member] Joint Venture Consolidated [Member] WASHINGTON Real Estate Entities [Member] Variable Interest Entity, Primary Beneficiary [Member]	Jun. 30, 2013 Mortgages [Member] Real Estate Entities [Member]	Dec. 31, 2012 Mortgages [Member] Real Estate Entities [Member]	Jun. 30, 2012 Mortgages [Member] Real Estate Entities [Member]
Variable Interest Entity [Line Items]
Other Asset Impairment Charges						$ 0	$ 0
Increase in Financial Support Authorization				5,900,000	0
Authorized Investment Yet to be Contributed				3,400,000
Real estate held for development and sale	50,697,000	50,223,000	57,367,000					50,697,000	50,223,000	57,367,000	40,698,000	40,327,000	47,547,000
Debt, Recourse and Nonrecourse														9,500,000	11,600,000	21,000,000
Current maturities of non-recourse debt	2,147,000	10,707,000	16,328,000
Total current liabilities	534,856,000	531,272,000	442,671,000
Long-term non-recourse debt	7,354,000	922,000	4,641,000
Other long-term liabilities	$ 46,817,000	$ 47,124,000	$ 47,393,000

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Construction and Line Item Joint Ventures (Tables)

6 Months Ended

Jun. 30, 2013

Construction and Line Item Joint Ventures [Abstract]

Schedule of Consolidated Joint Ventures [Table Text Block]

The carrying amounts and classification of assets and liabilities of construction joint ventures we are required to consolidate are included in our condensed consolidated financial statements as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Cash and cash equivalents1	$	63,806	$	105,865	$	67,685
Receivables, net	59,807		43,902		26,903
Other current assets	3,592		4,008		2,125
Total current assets	127,205		153,775		96,713
Property and equipment, net	34,891		41,114		6,919
Other noncurrent assets	1,253		1,700		—
Total assets2	$	163,349	$	196,589	$	103,632
Accounts payable	$	18,297	$	34,536	$	31,135
Billings in excess of costs and estimated earnings1	72,094		72,490		17,979
Accrued expenses and other current liabilities	9,153		8,312		3,027
Total liabilities2	$	99,544	$	115,338	$	52,141

¹The volume and stage of completion of contracts from our consolidated construction joint ventures may cause fluctuations in cash and cash equivalents, as well as billings in excess of costs and estimated earnings between periods.

²The assets and liabilities of each joint venture relate solely to that joint venture. The decision to distribute joint venture cash and cash equivalents and assets must generally be made jointly by all of the partners and, accordingly, these cash and cash equivalents and assets generally are not available for the working capital needs of Granite until distributed.

Schedule of Unconsolidated Joint Ventures [Table Text Block]

As of June 30, 2013, one of our unconsolidated construction joint ventures was located in Canada and, therefore, the associated disclosures throughout this footnote include amounts that were translated from Canadian dollars to U.S. dollars using the spot rate in effect as of the reporting date for balance sheet items, or the average rate in effect during the reporting period for results of operations. The associated foreign currency translation adjustments did not have a material impact on the financial statements for any of the periods presented.

Following is summary financial information related to unconsolidated construction joint ventures:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Assets:
Cash and cash equivalents1	$	342,534	$	244,686	$	337,102
Other assets	439,812		301,412		300,744
Less partners’ interest	512,775		342,545		392,139
Granite’s interest	269,571		203,553		245,707
Liabilities:
Accounts payable	115,606		114,039		101,782
Billings in excess of costs and estimated earnings1	262,259		161,268		265,883
Other liabilities	25,733		6,106		8,455
Less partners’ interest	282,521		183,432		238,234
Granite’s interest	121,077		97,981		137,886
Equity in construction joint ventures2	$	148,494	$	105,572	$	107,821

¹The volume and stage of completion of contracts from our unconsolidated construction joint ventures may cause fluctuations in cash and cash equivalents, as well as billings in excess of costs and estimated earnings between periods. The decision to distribute joint venture cash and cash equivalents and assets must generally be made jointly by all of the partners and, accordingly, these cash and cash equivalents and assets generally are not available for the working capital needs of Granite until distributed.

²As of June 30, 2013 and December 31, 2012, this balance included $0.2 million of deficit in unconsolidated construction joint ventures that is included in accrued expenses and other current liabilities on the condensed consolidated balance sheets.

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2013		2012		2013		2012
Revenue:
Total1	$	259,255	$	284,095	$	484,558	$	489,926
Less partners’ interest1,2	172,656		183,861		326,361		316,064
Granite’s interest	86,599		100,234		158,197		173,862
Cost of revenue:
Total1	212,779		227,389		371,475		397,001
Less partners’ interest1,2	141,659		150,091		248,980		259,331
Granite’s interest	71,120		77,298		122,495		137,670
Granite’s interest in gross profit	$	15,479	$	22,936	$	35,702	$	36,192

¹While Granite’s interest in revenue, cost of revenue and gross profit were correctly stated, total and partners’ interest for revenue and cost of revenue for the three and six month periods ended June 30, 2012 were inadvertently misstated in our Quarterly Report for the quarter ended June 30, 2012. Total revenue, partner’s interest in revenue, total cost of revenue and partners’ interest in cost of revenue reported were (in thousands): $663,536, $563,302, $544,838 and $467,540, respectively, for the three months ended June 30, 2012, and $869,368, $695,505, $714,450 and $576,780, respectively, for the six months ended June 30, 2012.

²Partners’ interest represents amounts to reconcile total revenue and total cost of revenue as reported by our partners to Granite’s interest, adjusted to reflect our accounting policies.

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Fair Value Measurement - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013		Jun. 30, 2013		Dec. 31, 2012		Jun. 30, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset Impairment Charges	$ 0		$ 0
Liabilities, Fair Value Disclosure [Abstract]
Line of Credit Facility, Amount Outstanding	70,000,000	[1]	70,000,000	[1]	70,000,000	[1]	0	[1]
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Assets, Fair Value Disclosure	144,605,000		144,605,000		206,542,000		172,424,000
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Assets, Fair Value Disclosure	0		0		0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Assets, Fair Value Disclosure	0		0		0		0
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Assets, Fair Value Disclosure [Abstract]
Assets, Fair Value Disclosure	144,605,000		144,605,000		206,542,000		172,424,000
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 3 [Member]
Liabilities, Fair Value Disclosure [Abstract]
Senior Notes Payable, Fair Value Disclosure	227,902,000	[1]	227,902,000	[1]	243,118,000	[1]	239,443,000	[1]
Line of Credit Facility, Amount Outstanding	69,321,000	[1]	69,321,000	[1]	70,444,000	[1]	0	[1]
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Cash equivalents	144,605,000		144,605,000		201,542,000		167,427,000
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Cash equivalents	0		0		0		0
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Cash equivalents	0		0		0		0
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Assets, Fair Value Disclosure [Abstract]
Cash equivalents	144,605,000		144,605,000		201,542,000		167,427,000
Commercial paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Cash equivalents					5,000,000		4,997,000
Commercial paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Cash equivalents					0		0
Commercial paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Cash equivalents					0		0
Commercial paper [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Assets, Fair Value Disclosure [Abstract]
Cash equivalents					$ 5,000,000		$ 4,997,000

[1] 2The fair values of the senior notes payable and Credit Agreement loan are based on borrowing rates available to us for long-term loans with similar terms, average maturities, and credit risk.

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Receivables, Net Accounts Receivable Policy (Policies)

6 Months Ended

Jun. 30, 2013

5. Receivables, Net [Abstract]

Retention Receivable Policy [Policy Text Block]

Non-escrow retention receivables are amounts that the project owner has contractually withheld that are to be paid upon owner acceptance of contract completion. We evaluate our non-escrow retention receivables for collectability using certain customer information that includes the following:

• Federal - includes federal agencies such as the Bureau of Reclamation, the Army Corp of Engineers, and the Bureau of Indian Affairs. The obligations of these agencies are backed by the federal government. Consequently, there is minimal risk of not collecting the amounts we are entitled to receive.    

• State - primarily state departments of transportation. The risk of not collecting on these accounts is low; however, we have experienced occasional delays in payment as states have struggled with budget issues.

• Local - these customers include local agencies such as cities, counties and other local municipal agencies. The risk of not collecting on these accounts is low; however, we have experienced occasional delays in payment as some local agencies have struggled to deal with budget issues.       

• Private - includes individuals, developers and corporations. The majority of our collection risk is associated with these customers. We perform ongoing credit evaluations of our customers and generally do not require collateral, although the law provides us certain remedies, including, but not limited to, the ability to file mechanics’ liens on real property improved for private customers in the event of non-payment by such customers.

Accounts Receivable Collection Policy [Policy Text Block]

We regularly review our accounts receivable, including past due amounts, to determine their probability of collection. If it is probable that an amount is uncollectible, it is charged to bad debt expense and a corresponding reserve is established in allowance for doubtful accounts. If it is deemed certain that an amount is uncollectible, the amount is written off. Based on contract terms, non-escrow retention receivables are typically due within 60 days of owner acceptance of contract completion. We consider retention amounts beyond 60 days of owner acceptance of contract completion to be past due.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Operating Activities
Net loss	$ (16,661)	$ (4,200)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, depletion and amortization	33,988	29,573
Non-cash restructuring, net	(497)	(1,888)
Other non-cash impairment charges	0	2,752
Gain on sales of property and equipment	(4,394)	(4,871)
Stock-based compensation	8,101	6,492
Changes in assets and liabilities, net of the effects of a acquisition:
Receivables	(9,176)	(20,771)
Costs and estimated earnings in excess of billings, net	(24,873)	(47,201)
Inventories	(9,120)	(16,528)
Equity in construction joint ventures	(42,336)	(6,792)
Other assets, net	(5,957)	15,753
Accounts payable	(10,548)	27,632
Accrued expenses and other current liabilities, net	29,825	(14,575)
Net cash used in operating activities	(51,648)	(34,624)
Investing Activities
Purchases of marketable securities	(14,975)	(39,945)
Maturities of marketable securities	43,000	65,100
Proceeds from sale of marketable securities	5,000	35,000
Additions to property and equipment	(19,422)	(19,855)
Proceeds from sales of property and equipment	8,481	6,078
Payments of Kenny post-closing adjustments	(4,621)	0
Other investing activities, net	163	(978)
Net cash provided by investing activities	17,626	45,400
Financing Activities
Long-term debt principal payments	(10,594)	(10,834)
Cash dividends paid	(10,078)	(10,050)
Purchase of common stock	(5,022)	(4,054)
Contributions from Noncontrolling Partners Net	6,001	0
Distributions to Noncontrolling Interests	(21,142)	(5,440)
Other financing activities, net	700	563
Net cash used in financing activities	(40,135)	(29,815)
Decrease in cash and cash equivalents	(74,157)	(19,039)
Cash and cash equivalents at beginning of period	321,990	256,990
Cash and cash equivalents at end of period	247,833	237,951
Cash paid during the period for:
Interest	7,339	7,158
Income taxes	2,006	771
Non-cash investing and financing activities:
Restricted stock units issued, net of forfeitures	14,862	11,417
Accrued cash dividends	5,051	5,029
Debt payments out of escrow from sale of assets	0	1,109
Debt extinguishment from joint venture interest transfer	0	9,115
Debt payment from refinancing	$ 0	$ 1,150

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Revisions in Estimates

6 Months Ended

Jun. 30, 2013

Change in Accounting Estimate [Abstract]

Change In Accounting Estimate [Text Block]

Revisions in Estimates

Our profit recognition related to construction contracts is based on estimates of costs to complete each project. These estimates can vary in the normal course of business as projects progress and uncertainties are resolved. We do not recognize revenue on contract change orders or claims until we have a signed agreement; however, we do recognize costs as incurred and revisions to estimated total costs as soon as the obligation to perform is determined. Approved change orders and claims, as well as changes in related estimates of costs to complete, are considered revisions in estimates. We use the cumulative catch-up method applicable to construction contract accounting to account for revisions in estimates. Under this method, revisions in estimates are accounted for in their entirety in the period of change. As of June 30, 2013, we had no revisions in estimates that are reasonably certain to impact future periods.

Construction

The net changes in project profitability from revisions in estimates, both increases and decreases, that individually had an impact of $1.0 million or more on gross profit were net decreases of $0.5 million and $0.3 million for the three and six months ended June 30, 2013, respectively. The net changes for the three and six months ended June 30, 2012 were net decreases of $1.6 million and $0.8 million, respectively. The projects are summarized as follows:

Increases

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)			2013		2012		2013		2012
Number of projects with upward estimate changes			1		1		2		3
Range of increase in gross profit from each project, net		$	1.6	$	1.4	$	1.4 - 1.7	$	1.1 - 3.2
Increase to project profitability		$	1.6	$	1.4	$	3.1	$	5.4

The increases during the three and six months ended June 30, 2013 were due to owner directed scope changes. The increases during the three and six months ended June 30, 2012 were due to production at a higher rate than anticipated and settlement of outstanding issues with contract owners.

Decreases

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)			2013		2012		2013		2012
Number of projects with downward estimate changes			1		2		2		2
Range of reduction in gross profit from each project, net		$	2.1	$	1.1 - 1.9	$	1.0 - 2.4	$	1.4 - 4.8
Decrease to project profitability		$	2.1	$	3.0	$	3.4	$	6.2

The decreases during the three and six months ended June 30, 2013 and 2012 were due to lower productivity than originally anticipated.

Large Project Construction

The net changes in project profitability from revisions in estimates, both increases and decreases, that individually had an impact of $1.0 million or more on gross profit were net increases of $8.7 million and $17.9 million for the three and six months ended June 30, 2013, respectively. The net changes for the three and six months ended June 30, 2012 were net increases of $9.3 million and $13.7 million, respectively. Amounts attributable to noncontrolling interests were $0.4 million and $1.4 million of the net increases for the three and six months ended June 30, 2013 and were $0.4 million and $0.9 million of the net increases for the three and six months ended June 30, 2012, respectively. The projects are summarized as follows:

Increases

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)			2013		2012		2013		2012
Number of projects with upward estimate changes			5		6		5		6
Range of increase in gross profit from each project, net		$	1.3 - 8.3	$	1.2 - 3.6	$	1.5 - 16.1	$	1.4 - 5.2
Increase to project profitability		$	15.8	$	14.9	$	31.9	$	23.1

The increases during the three and six months ended June 30, 2013 were due to production at a higher rate than anticipated, resolution of project uncertainties and owner directed scope changes. The increases during the three and six months ended June 30, 2012 were due to owner directed scope changes and production at a higher rate than anticipated.

Decreases

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)			2013		2012		2013		2012
Number of projects with downward estimate changes			2		1		2		2
Range of reduction in gross profit from each project, net		$	2.8 - 4.3	$	5.6	$	5.2 - 8.8	$	1.5 - 7.9
Decrease to project profitability		$	7.1	$	5.6	$	14.0	$	9.4

The downward estimate changes during the three and six months ended June 30, 2013 and 2012 were due to lower productivity than anticipated.

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Receivables, Net

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Receivables, Net

Receivables, net

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Construction contracts:
Completed and in progress	$	207,488	$	195,244	$	146,509
Retentions	76,288		93,800		66,265
Total construction contracts	283,776		289,044		212,774
Construction material sales	43,535		26,918		50,205
Other	11,700		12,316		12,624
Total gross receivables	339,011		328,278		275,603
Less: allowance for doubtful accounts	2,593		2,749		3,041
Total net receivables	$	336,418	$	325,529	$	272,562

Receivables include amounts billed and billable to clients for services provided and/or according to contract terms as of the end of the applicable period and do not bear interest. Certain contracts include provisions that permit us to submit invoices in advance of providing services and, to the extent not collected, they are included in receivables. Other contracts include provisions that permit us to submit invoices based on the passage of time, achievement of milestones or completion of the project. To the extent the related costs have not been billed, the contract balance is included in costs and estimated earnings in excess of billings on the condensed consolidated balance sheets.

Certain construction contracts include retainage provisions. The balances billed but not paid by customers pursuant to these provisions in general become due upon completion and acceptance of the contract by the owners. As of June 30, 2013, substantially all of the retentions receivable are expected to be collected within one year. Included in other receivables at June 30, 2013, December 31, 2012 and June 30, 2012 were items such as notes receivable, fuel tax refunds and income tax refunds. No such receivables individually exceeded 10% of total net receivables at any of these dates.

Financing receivables consisted of long-term notes receivable and retentions receivable. As of June 30, 2013, December 31, 2012 and June 30, 2012 long-term notes receivable outstanding were $1.6 million, $2.0 million and $1.9 million, respectively, and primarily related to loans made to employees and were included in other noncurrent assets in our condensed consolidated balance sheets.

We segregate our retention receivables into two categories: escrow and non-escrow. The balances in each category were as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Escrow	$	31,892	$	41,494	$	42,421
Non-escrow	44,396		52,306		23,844
Total retention receivables	$	76,288	$	93,800	$	66,265

The escrow receivables include amounts due to Granite which have been deposited into an escrow account and bear interest. Typically, escrow retention receivables are held until work on a project is complete and has been accepted by the owner who then releases those funds, along with accrued interest, to us. There is minimal risk of not collecting on these amounts.

Non-escrow retention receivables are amounts that the project owner has contractually withheld that are to be paid upon owner acceptance of contract completion. We evaluate our non-escrow retention receivables for collectability using certain customer information that includes the following:

• Federal - includes federal agencies such as the Bureau of Reclamation, the Army Corp of Engineers, and the Bureau of Indian Affairs. The obligations of these agencies are backed by the federal government. Consequently, there is minimal risk of not collecting the amounts we are entitled to receive.    

• State - primarily state departments of transportation. The risk of not collecting on these accounts is low; however, we have experienced occasional delays in payment as states have struggled with budget issues.

• Local - these customers include local agencies such as cities, counties and other local municipal agencies. The risk of not collecting on these accounts is low; however, we have experienced occasional delays in payment as some local agencies have struggled to deal with budget issues.       

• Private - includes individuals, developers and corporations. The majority of our collection risk is associated with these customers. We perform ongoing credit evaluations of our customers and generally do not require collateral, although the law provides us certain remedies, including, but not limited to, the ability to file mechanics’ liens on real property improved for private customers in the event of non-payment by such customers.

The following table summarizes the amount of our non-escrow retention receivables within each category:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Federal	$	3,325	$	3,234	$	2,464
State	2,757		2,971		4,626
Local	32,500		31,559		9,944
Private	5,814		14,542		6,810
Total	$	44,396	$	52,306	$	23,844

We regularly review our accounts receivable, including past due amounts, to determine their probability of collection. If it is probable that an amount is uncollectible, it is charged to bad debt expense and a corresponding reserve is established in allowance for doubtful accounts. If it is deemed certain that an amount is uncollectible, the amount is written off. Based on contract terms, non-escrow retention receivables are typically due within 60 days of owner acceptance of contract completion. We consider retention amounts beyond 60 days of owner acceptance of contract completion to be past due. The following tables present the aging of our non-escrow retention receivables (in thousands):

June 30, 2013	Current		1 - 90 Days Past Due		Over 90 Days Past Due		Total
Federal	$	2,551	$	236	$	538	$	3,325
State	1,327		619		811		2,757
Local	25,362		1,496		5,642		32,500
Private	4,571		634		609		5,814
Total	$	33,811	$	2,985	$	7,600	$	44,396

December 31, 2012	Current		1 - 90 Days Past Due		Over 90 Days Past Due		Total
Federal	$	3,116	$	72	$	46	$	3,234
State	2,148		502		321		2,971
Local	25,743		1,082		4,734		31,559
Private	13,310		716		516		14,542
Total	$	44,317	$	2,372	$	5,617	$	52,306

June 30, 2012	Current		1 - 90 Days Past Due		Over 90 Days Past Due		Total
Federal	$	1,746	$	—	$	718	$	2,464
State	3,552		208		866		4,626
Local	7,330		1,326		1,288		9,944
Private	6,363		92		355		6,810
Total	$	18,991	$	1,626	$	3,227	$	23,844

Federal, state and local agencies generally require several approvals to release payments, and these approvals often take over 90 days past contractual due dates to obtain. Amounts past due from government agencies primarily result from delays caused by paperwork processing and obtaining proper agency approvals rather than lack of funds. We generally receive payment within one year of owner acceptance. As of June 30, 2013, December 31, 2012 and June 30, 2012, our allowance for doubtful accounts contained no material provision related to non-escrow retention receivables as we determined there were no significant collectibility issues.

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Marketable Securities

6 Months Ended

Jun. 30, 2013

Marketable Securities [Abstract]

Marketable Securities [Table Text Block]

Marketable Securities

All marketable securities were classified as held-to-maturity for the dates presented and the carrying amounts of held-to-maturity securities were as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
U.S. Government and agency obligations	$	613	$	7,375	$	20,107
Commercial paper	14,992		34,966		14,967
Municipal bonds	5,666		8,738		3,065
Corporate bonds	—		5,009		5,121
Total short-term marketable securities	21,271		56,088		43,260
U.S. Government and agency obligations	55,225		55,342		40,041
Municipal bonds	—		—		5,759
Total long-term marketable securities	55,225		55,342		45,800
Total marketable securities	$	76,496	$	111,430	$	89,060

Scheduled maturities of held-to-maturity investments were as follows (in thousands):

June 30, 2013
Due within one year	$	21,271
Due in one to five years	55,225
Total	$	76,496

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Marketable Securities - Carrying Amounts of Marketable Securities (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013		Dec. 31, 2012		Jun. 30, 2012
Schedule of Marketable Securities [Line Items]
Short-term marketable securities	$ 21,271		$ 56,088		$ 43,260
Long-term marketable securities	55,225		55,342		45,800
Held-to-Maturity [Member]
Schedule of Marketable Securities [Line Items]
Short-term marketable securities	21,271		56,088		43,260
Long-term marketable securities	55,225		55,342		45,800
Total marketable securities	76,496	[1]	111,430	[1]	89,060	[1]
U.S. Government and agency obligations [Member] | Held-to-Maturity [Member]
Schedule of Marketable Securities [Line Items]
Short-term marketable securities	613		7,375		20,107
Long-term marketable securities	55,225		55,342		40,041
Commercial paper [Member] | Held-to-Maturity [Member]
Schedule of Marketable Securities [Line Items]
Short-term marketable securities	14,992		34,966		14,967
Municipal bonds [Member] | Held-to-Maturity [Member]
Schedule of Marketable Securities [Line Items]
Short-term marketable securities	5,666		8,738		3,065
Long-term marketable securities	0		0		5,759
Corporate bonds [Member] | Held-to-Maturity [Member]
Schedule of Marketable Securities [Line Items]
Short-term marketable securities	$ 0		$ 5,009		$ 5,121

[1] 1Held-to-maturity marketable securities are periodically assessed for other-than-temporary impairment.

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Marketable Securities (Tables)

6 Months Ended

Jun. 30, 2013

Marketable Securities [Abstract]

Schedule of Marketable Securities

All marketable securities were classified as held-to-maturity for the dates presented and the carrying amounts of held-to-maturity securities were as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
U.S. Government and agency obligations	$	613	$	7,375	$	20,107
Commercial paper	14,992		34,966		14,967
Municipal bonds	5,666		8,738		3,065
Corporate bonds	—		5,009		5,121
Total short-term marketable securities	21,271		56,088		43,260
U.S. Government and agency obligations	55,225		55,342		40,041
Municipal bonds	—		—		5,759
Total long-term marketable securities	55,225		55,342		45,800
Total marketable securities	$	76,496	$	111,430	$	89,060

Held-to-maturity Securities

Scheduled maturities of held-to-maturity investments were as follows (in thousands):

June 30, 2013
Due within one year	$	21,271
Due in one to five years	55,225
Total	$	76,496

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Real Estate Entities and Investments in Affiliates (Tables)

6 Months Ended

Jun. 30, 2013

Real Estate Entities and Investments in Affiliates [Abstract]

Schedule of Equity and Cost Method Investments [Table Text Block]

Our investments in affiliates balance consists of the following:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Equity method investments in real estate affiliates	$	20,378	$	19,775	$	17,563
Equity method investments in other affiliates	11,043		11,024		10,958
Total investments in affiliates	$	31,421	$	30,799	$	28,521

Equity Method Investment Summarized Balance Sheet Location [Table Text Block]

The following table provides summarized balance sheet information for our affiliates accounted for under the equity method on a combined basis:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Total assets	$	160,422	$	166,112	$	158,431
Net assets	93,771		92,106		87,197
Granite’s share of net assets	31,421		30,799		28,521

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Equity (Tables)

6 Months Ended

Jun. 30, 2013

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity

The following tables summarize our equity activity for the periods presented:

(in thousands)	Granite Construction Incorporated			Noncontrolling Interests			Total Equity
Balance at December 31, 2012	$	829,953		$	41,905		$	871,858
Purchase of common stock1	(5,022		)	—			(5,022		)
Other transactions with shareholders3	8,796			—			8,796
Transactions with noncontrolling interests, net4	—			(14,701		)	(14,701		)
Net (loss) income	(19,264		)	2,603			(16,661		)
Dividends on common stock	(10,096		)	—			(10,096		)
Balance at June 30, 2013	$	804,367		$	29,807		$	834,174

(in thousands)
Balance at December 31, 2011	$	799,197		$	28,466		$	827,663
Purchase of common stock2	(4,054		)	—			(4,054		)
Other transactions with shareholders3	5,211			—			5,211
Transactions with noncontrolling interests, net4	—			(5,440		)	(5,440		)
Net (loss) income	(9,824		)	5,624			(4,200		)
Dividends on common stock	(10,050		)	—			(10,050		)
Balance at June 30, 2012	$	780,480		$	28,650		$	809,130

¹Represents 168,000 shares purchased in connection with employee tax withholding for shares/units granted under our Amended and Restated 1999 Equity Incentive Plan.

²Represents 139,000 shares purchased in connection with employee tax withholding for shares/units granted under our Amended and Restated 1999 Equity Incentive Plan.

³Amounts are comprised primarily of amortized restricted stock and units.

⁴Amounts are comprised primarily of distributions to noncontrolling partners.

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Covenants and Events of Default (Details)	6 Months Ended
	Jun. 30, 2013
Debt Disclosure [Abstract]
Covenant Compliance	We were in compliance with the covenants contained in our senior note agreements and Credit Agreement.

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Real Estate Entities and Investments in Affiliates - Investments in Affiliates (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012
Investments in and Advances to Affiliates [Line Items]
Investments in affiliates	$ 31,421,000	$ 30,799,000	$ 28,521,000
Joint Venture Unconsolidated [Member]
Investments in and Advances to Affiliates [Line Items]
Equity Method Investment, Summarized Financial Information, Assets	160,422,000	166,112,000	158,431,000
Equity Method Investments Summarized Financial Information Net Assets	93,771,000	92,106,000	87,197,000
Investments in affiliates	31,421,000	30,799,000	28,521,000
Joint Venture Unconsolidated [Member] | Other Affiliates [Member]
Investments in and Advances to Affiliates [Line Items]
Equity Method Investments	31,421,000	30,799,000	28,521,000
Joint Venture Unconsolidated [Member] | Equity Method Investments in Non Real Estate Affiliate [Member]
Investments in and Advances to Affiliates [Line Items]
Equity Method Investments	11,043,000	11,024,000	10,958,000
Real Estate Segment [Member] | Joint Venture Unconsolidated [Member] | Equity Method investments in Real Estate Affiliates [Member] | Real Estate Entities [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Investments in and Advances to Affiliates [Line Items]
Equity Method Investments	20,378,000	19,775,000	17,563,000
Real Estate Segment [Member] | Joint Venture Unconsolidated [Member] | Residential real estate [Member] | Equity Method investments in Real Estate Affiliates [Member] | Real Estate Entities [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Investments in and Advances to Affiliates [Line Items]
Equity Method Investments	14,085,000	13,813,000	12,217,000
Real Estate Segment [Member] | Joint Venture Unconsolidated [Member] | Minimum [Member] | Real Estate Entities [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Investments in and Advances to Affiliates [Line Items]
Real Estate Development Projects Range of Total Assets	1,900,000
Real Estate Segment [Member] | Joint Venture Unconsolidated [Member] | Maximum [Member] | Real Estate Entities [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Investments in and Advances to Affiliates [Line Items]
Real Estate Development Projects Range of Total Assets	$ 47,200,000

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Fair Value Measurement - Carrying and Fair Value Amounts (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013		Dec. 31, 2012		Jun. 30, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Notes	$ 200,000	[1]	$ 208,333	[1]	$ 208,333	[1]
Line of Credit Facility, Amount Outstanding	70,000	[1]	70,000	[1]	0	[1]
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity Securities, Fair Value Disclosure current and long-term	76,100	[2]	111,525	[2]	89,239	[2]
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes Payable, Fair Value Disclosure	227,902	[1]	243,118	[1]	239,443	[1]
Line of Credit Facility, Amount Outstanding	$ 69,321	[1]	$ 70,444	[1]	$ 0	[1]

[1] 2The fair values of the senior notes payable and Credit Agreement loan are based on borrowing rates available to us for long-term loans with similar terms, average maturities, and credit risk.

[2] 1Held-to-maturity marketable securities are periodically assessed for other-than-temporary impairment.

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CONSOLIDATED BALANCE SHEETS Consolidated Balance Sheets Parenthetical (Assets and Liabilities) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013		Dec. 31, 2012		Jun. 30, 2012
Cash and cash equivalents	$ 247,833		$ 321,990		$ 237,951
Property and equipment, net	471,265		481,478		439,664
Accounts payable	188,124		202,541		186,290
Billings in excess of costs and estimated earnings	144,044		139,692		75,629
Accrued expenses and other current liabilities	200,521		169,979		155,322
Consolidated Construction Joint Venture [Member] | Joint Venture Consolidated [Member]
Cash and cash equivalents	63,806	[1]	105,865	[1]	67,685	[1]
Receivables, Net, Current	59,807		43,902		26,903
Property and equipment, net	34,891		41,114		6,919
Accounts payable	18,297		34,536		31,135
Billings in excess of costs and estimated earnings	72,094	[1]	72,490	[1]	17,979	[1]
Accrued expenses and other current liabilities	$ 9,153		$ 8,312		$ 3,027

[1] The volume and stage of completion of contracts from our consolidated construction joint ventures may cause fluctuations in cash and cash equivalents, as well as billings in excess of costs and estimated earnings between periods.

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Property and Equipment, Net

6 Months Ended

Jun. 30, 2013

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and Equipment, net

Balances of major classes of assets and allowances for depreciation and depletion are included in property and equipment, net on our condensed consolidated balance sheets as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Equipment and vehicles	$	760,271	$	758,782	$	722,724
Quarry property	180,325		180,567		177,792
Land and land improvements	125,489		125,961		126,396
Buildings and leasehold improvements	83,733		83,245		80,910
Office furniture and equipment	68,822		67,743		63,414
Property and equipment	1,218,640		1,216,298		1,171,236
Less: accumulated depreciation and depletion	747,375		734,820		731,572
Property and equipment, net	$	471,265	$	481,478	$	439,664

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenue
Construction	$ 308,602	$ 245,113	$ 485,720	$ 363,059
Large Project Construction	181,371	228,799	353,086	392,727
Construction Materials	60,185	63,349	89,935	88,972
Real Estate	4	2,354	125	5,017
Total revenue	550,162	539,615	928,866	849,775
Cost of revenue
Construction	283,448	227,152	447,367	336,518
Large Project Construction	159,283	200,560	308,278	342,239
Construction Materials	56,231	58,349	91,955	89,922
Real Estate	3	1,638	13	4,244
Total cost of revenue	498,965	487,699	847,613	772,923
Gross profit	51,197	51,916	81,253	76,852
Selling, general and administrative expenses	46,454	40,806	104,112	85,882
Gain on restructuring	0	0	497	1,888
Gain on sales of property and equipment	3,306	2,954	4,394	4,871
Operating income (loss)	8,049	14,064	(17,968)	(2,271)
Other income (expense)
Interest income	380	611	508	1,655
Interest expense	(3,700)	(2,827)	(7,345)	(6,009)
Equity in income (loss) of affiliates	698	(484)	275	(1,101)
Other (expense) income, net	(495)	(5,018)	608	1,853
Total other expense	(3,117)	(7,718)	(5,954)	(3,602)
Income (loss) before benefit from income taxes	4,932	6,346	(23,922)	(5,873)
Provision for (benefit from) income taxes	1,766	1,859	(7,261)	(1,673)
Net income (loss)	3,166	4,487	(16,661)	(4,200)
Amount attributable to noncontrolling interests	(448)	(2,538)	(2,603)	(5,624)
Net income (loss) attributable to Granite Construction Incorporated	$ 2,718	$ 1,949	$ (19,264)	$ (9,824)
Net income (loss) per share attributable to common shareholders (see Note 12 and 13)
Earnings (Loss) Per Share, Basic	$ 0.07	$ 0.05	$ (0.50)	$ (0.26)
Earnings (Loss) Per Share, Diluted	$ 0.07	$ 0.05	$ (0.50)	$ (0.26)
Weighted average shares of common stock
Weighted Average Number of Shares Outstanding, Basic	38,829	38,471	38,720	38,368
Weighted Average Number of Shares Outstanding, Diluted	39,769	39,151	38,720	38,368
Dividends per common share	$ 0.13	$ 0.13	$ 0.26	$ 0.26

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Equity (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013		Jun. 30, 2012
Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance			$ 871,858		$ 827,663
Purchase of common stock			(5,022)	[1]	(4,054)	[2]
Other transactions with shareholders			8,796	[3]	5,211	[3]
Transactions with noncontrolling interests, net			(14,701)	[4]	(5,440)	[4]
Comprehensive income (loss):
Net loss	3,166	4,487	(16,661)		(4,200)
Dividends on common stock			(10,096)		(10,050)
Stockholders' equity, ending balance	834,174	809,130	834,174		809,130
Shares Purchased for Tax Withholding for Share Based Compensation			168,000		139,000
Granite Construction [Member]
Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance			829,953		799,197
Purchase of common stock			(5,022)	[1]	(4,054)	[2]
Other transactions with shareholders			8,796	[3]	5,211	[3]
Transactions with noncontrolling interests, net			0	[4]	0	[4]
Comprehensive income (loss):
Net loss			(19,264)		(9,824)
Dividends on common stock			(10,096)		(10,050)
Stockholders' equity, ending balance	804,367	780,480	804,367		780,480
Noncontrolling Interest [Member]
Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance			41,905		28,466
Purchase of common stock			0	[1]	0	[2]
Other transactions with shareholders			0	[3]	0	[3]
Transactions with noncontrolling interests, net			(14,701)	[4]	(5,440)	[4]
Comprehensive income (loss):
Net loss			2,603		5,624
Dividends on common stock			0		0
Stockholders' equity, ending balance	$ 29,807	$ 28,650	$ 29,807		$ 28,650

[1] Represents 168,000 shares purchased in connection with employee tax withholding for shares/units granted under our Amended and Restated 1999 Equity Incentive Plan.

[2] Represents 139,000 shares purchased in connection with employee tax withholding for shares/units granted under our Amended and Restated 1999 Equity Incentive Plan.

[3] Amounts are comprised primarily of amortized restricted stock and units.

[4] 4Amounts are comprised primarily of distributions to noncontrolling partners.

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012
Current Assets
Cash and cash equivalents ($63,806, $105,865, and $67,685 related to consolidated construction joint ventures (CCJVs))	$ 247,833	$ 321,990	$ 237,951
Short-term marketable securities	21,271	56,088	43,260
Receivables, net ($59,807, $43,902 and $26,903 related to CCJVs)	336,418	325,529	272,562
Costs and estimated earnings in excess of billings	63,341	34,116	69,688
Inventories	68,905	59,785	67,503
Real estate held for development and sale	50,697	50,223	57,367
Deferred income taxes	36,687	36,687	38,571
Equity in construction joint ventures	148,727	105,805	107,821
Other current assets	35,651	31,834	20,436
Total current assets	1,009,530	1,022,057	915,159
Property and equipment, net ($34,891, $41,114 and $6,919 related to CCJVs)	471,265	481,478	439,664
Long-term marketable securities	55,225	55,342	45,800
Investments in affiliates	31,421	30,799	28,521
Goodwill	53,598	55,419	9,900
Other noncurrent assets	80,365	84,392	68,603
Total assets	1,701,404	1,729,487	1,507,647
Current liabilities
Current maturities of long-term debt	20	8,353	9,102
Current maturities of non-recourse debt	2,147	10,707	16,328
Accounts payable ($18,297, $34,536 and $31,135 related to CCJVs)	188,124	202,541	186,290
Billings in excess of costs and estimated earnings ($72,094, $72,490 and $17,979 related to CCJVs)	144,044	139,692	75,629
Accrued expenses and other current liabilities ($9,153, $8,312 and $3,027 related to CCJVs)	200,521	169,979	155,322
Total current liabilities	534,856	531,272	442,671
Long-term debt	270,148	270,148	200,168
Long-term non-recourse debt	7,354	922	4,641
Other long-term liabilities	46,817	47,124	47,393
Deferred income taxes	8,055	8,163	3,644
Commitments and contingencies
Equity
Preferred stock, $0.01 par value, authorized 3,000,000 shares, none outstanding	0	0	0
Common stock, $0.01 par value, authorized 150,000,000 shares; issued and outstanding 38,852,463 shares as of June 30, 2013, 38,730,665 shares as of December 31, 2012 and 38,684,540 shares as of June 30, 2012	389	387	387
Additional paid-in capital	121,368	117,422	112,815
Retained earnings	682,610	712,144	667,278
Total Granite Construction Incorporated shareholders' equity	804,367	829,953	780,480
Noncontrolling interests	29,807	41,905	28,650
Total equity	834,174	871,858	809,130
Total liabilities and equity	$ 1,701,404	$ 1,729,487	$ 1,507,647

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Property and Equipment, Net (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012
Property, Plant and Equipment [Line Items]
Property and equipment	$ 1,218,640	$ 1,216,298	$ 1,171,236
Accumulated depreciation and depletion	747,375	734,820	731,572
Property and equipment, net	471,265	481,478	439,664
Equipment and vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	760,271	758,782	722,724
Quarry property [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	180,325	180,567	177,792
Land and land improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	125,489	125,961	126,396
Building and leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	83,733	83,245	80,910
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	$ 68,822	$ 67,743	$ 63,414

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Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following tables summarize assets and liabilities measured at fair value in the condensed consolidated balance sheets on a recurring basis for each of the fair value levels:

June 30, 2013	Fair Value Measurement at Reporting Date Using
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	144,605	$	—	$	—	$	144,605
Total assets	$	144,605	$	—	$	—	$	144,605

December 31, 2012	Fair Value Measurement at Reporting Date Using
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	201,542	$	—	$	—	$	201,542
Held-to-maturity commercial paper	5,000		—		—		5,000
Total assets	$	206,542	$	—	$	—	$	206,542

June 30, 2012	Fair Value Measurement at Reporting Date Using
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	167,427	$	—	$	—	$	167,427
Held-to-maturity commercial paper	4,997		—		—		4,997
Total assets	$	172,424	$	—	$	—	$	172,424

Schedule of Cash and Cash Equivalents [Table Text Block]

A reconciliation of cash equivalents to consolidated cash and cash equivalents is as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Cash equivalents	$	144,605	$	206,542	$	172,424
Cash	103,228		115,448		65,527
Total cash and cash equivalents	$	247,833	$	321,990	$	237,951

Fair Value Measurements, Nonrecurring [Table Text Block]

The carrying values and estimated fair values of our financial instruments that are not required to be measured at fair value in the condensed consolidated balance sheets are as follows: 

		June 30, 2013				December 31, 2012				June 30, 2012
(in thousands)	Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Held-to-maturity marketable securities1	Level 1	$	76,496	$	76,100	$	111,430	$	111,525	$	89,060	$	89,239
Liabilities (including current maturities):
Senior notes payable2	Level 3	$	200,000	$	227,902	$	208,333	$	243,118	$	208,333	$	239,443
Credit Agreement loan2	Level 3	70,000		69,321		70,000		70,444		—		—

¹Held-to-maturity marketable securities are periodically assessed for other-than-temporary impairment.

²The fair values of the senior notes payable and Credit Agreement loan are based on borrowing rates available to us for long-term loans with similar terms, average maturities, and credit risk.

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Acquisition (Notes)

6 Months Ended

Jun. 30, 2013

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Acquisition

On December 28, 2012, we signed a definitive agreement to acquire 100% of the outstanding shares of Kenny, a national contractor and construction manager based in Northbrook, Illinois for $141.1 million. The acquisition was effective December 31, 2012 and was funded through cash on hand and $70.0 million of proceeds from borrowings under Granite’s existing revolving credit facility. In accordance with the terms of the agreement, we paid a post-closing adjustment of $4.6 million in the second quarter of 2013 that was included in accrued and other current liabilities on our condensed consolidated balance sheet as of December 31, 2012. We expect to pay an additional $3.9 million of post-closing adjustment in the third quarter of 2013 that is included in accrued and other current liabilities on our condensed consolidated balance sheets as of June 30, 2013 and December 31, 2012. Each of these post-closing adjustments is reflected in the purchase price.

The acquired business operates under the name Kenny Construction Company as a wholly owned subsidiary of Granite Construction Incorporated. Kenny operates in the tunneling, electrical power, underground and civil businesses. Their underground business utilizes cutting-edge trenchless construction technologies and processes. This acquisition expands our presence in these markets and enables us to leverage our capabilities and geographic footprint. Kenny has approximately 475 employees and a network of 12 offices in the United States. We have accounted for this transaction in accordance with ASC Topic 805, Business Combinations (“ASC 805”).

Purchase Price Allocation

In accordance with ASC 805, a preliminary allocation of the purchase price was made to the net tangible and identifiable intangible assets based on their estimated fair values as of December 31, 2012. During the three months ended March 31, 2013, we adjusted the preliminary values assigned to certain assets and liabilities to reflect additional information obtained by $1.8 million, and made no such adjustments during the three months ended June 30, 2013. The condensed consolidated balance sheet as of June 30, 2013 reflects these changes, the most significant of which included an increase of $1.1 million to property and equipment. These adjustments are subject to revision, which may result in adjustments to the values presented below. We expect to finalize these amounts within 12 months from the acquisition date and do not expect any adjustments to be material. The following table presents the adjusted purchase price allocation (in thousands):

Cash and cash equivalents		$	53,185
Receivables		88,725
Costs and estimated earnings in excess of billings		444
Inventories		731
Equity in construction joint ventures		7,803
Other current assets		6,039
Property and equipment, net		52,267
Identifiable intangible assets:
Acquired backlog	7,900
Customer list	2,200
Trade name	4,100
Total identifiable intangible assets		14,200
Total identifiable assets acquired		223,394
Accounts payable		43,748
Billings in excess of costs and estimated earnings		50,098
Accrued expenses and other current liabilities		16,806
Noncontrolling interests		15,326
Net identifiable assets acquired		97,416
Goodwill		43,698
Purchase price		$	141,114

Intangible assets

Acquired intangible assets included backlog, customer relationships and trade name. We amortize the fair value of backlog intangible assets based on the associated project’s percent complete, and use the straight-line method over the assets’ estimated useful lives for other intangible assets. The estimated useful lives for backlog and customer relationships range from 1 to 8 years and represent existing contracts and the underlying customer relationships. The estimated useful lives of the trade names are 10 years and represent the fair values of the acquired trade names and trademarks. The identifiable intangible assets are expected to be deductible for income tax purposes. We recorded amortization expense associated with the acquired intangible assets as follows:

	Three Months Ended		Six Months Ended
(in thousands)	June 30, 2013
Cost of revenue - Construction	$	1,600	$	3,200
Cost of revenue - Large Project Construction	140		247
Selling, general and administrative expenses	181		362
Total	$	1,921	$	3,809

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. The factors that contributed to the recognition of goodwill from the acquisition of Kenny include acquiring a workforce with capabilities in the power, tunnel and underground markets, cost savings opportunities and the significant synergies expected to arise. The $43.7 million of goodwill that resulted from this acquisition is included in our Construction and Large Project Construction segments - see Note 9. The goodwill is expected to be deductible for income tax purposes.

In connection with the acquisition, Kenny became a guarantor of our obligations under the Credit Agreement and outstanding senior notes and pledged substantially all of its assets to collateralize such obligations, in each case on substantially the same terms as our other subsidiaries that are guarantors of such obligations.

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Fair Value Measurement - Cash and Cash Equivalents (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2011
Cash Equivalents, at Carrying Value [Abstract]
Cash equivalents	$ 144,605	$ 206,542	$ 172,424
Cash	103,228	115,448	65,527
Total cash and cash equivalents	$ 247,833	$ 321,990	$ 237,951	$ 256,990

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Restructuring (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Restructuring and Related Activities [Abstract]
Gain on restructuring	$ 0	$ 0	$ 497,000	$ 1,888,000
Expected restructuring charges			$ 25,000,000

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Acquisition (Tables)

6 Months Ended

Jun. 30, 2013

Acquired Indefinite-lived Intangible Assets [Line Items]

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

We recorded amortization expense associated with the acquired intangible assets as follows:

	Three Months Ended		Six Months Ended
(in thousands)	June 30, 2013
Cost of revenue - Construction	$	1,600	$	3,200
Cost of revenue - Large Project Construction	140		247
Selling, general and administrative expenses	181		362
Total	$	1,921	$	3,809

Schedule of Purchase Price Allocation [Table Text Block]

The following table presents the adjusted purchase price allocation (in thousands):

Cash and cash equivalents		$	53,185
Receivables		88,725
Costs and estimated earnings in excess of billings		444
Inventories		731
Equity in construction joint ventures		7,803
Other current assets		6,039
Property and equipment, net		52,267
Identifiable intangible assets:
Acquired backlog	7,900
Customer list	2,200
Trade name	4,100
Total identifiable intangible assets		14,200
Total identifiable assets acquired		223,394
Accounts payable		43,748
Billings in excess of costs and estimated earnings		50,098
Accrued expenses and other current liabilities		16,806
Noncontrolling interests		15,326
Net identifiable assets acquired		97,416
Goodwill		43,698
Purchase price		$	141,114

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Weighted Average Shares Outstanding (Tables)

6 Months Ended

Jun. 30, 2013

Weighted Average Number of Shares Outstanding Reconciliation [Abstract]

Schedule of Weighted Average Number of Shares [Table Text Block]

A reconciliation of the weighted average shares outstanding used in calculating basic and diluted net income (loss) per share in the accompanying condensed consolidated statements of operations is as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2013	2012	2013	2012
Weighted average shares outstanding:
Weighted average common stock outstanding	38,829	38,664	38,782	38,666
Less: weighted average unvested restricted stock outstanding	—	193	62	298
Total basic weighted average shares outstanding	38,829	38,471	38,720	38,368
Diluted weighted average shares outstanding:
Weighted average common stock outstanding, basic	38,829	38,471	38,720	38,368
Effect of dilutive securities:
Common stock options and restricted stock units1	940	680	—	—
Total weighted average shares outstanding assuming dilution	39,769	39,151	38,720	38,368

¹Due to the net loss for the six months ended June 30, 2013 and 2012, restricted stock units and common stock options representing approximately 851,000 and 580,000 shares, respectively, have been excluded from the number of shares used in calculating diluted net loss per share for the respective periods, as their inclusion would be antidilutive.

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Earnings Per Share Earnings per share (Tables)

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation [Table Text Block]

The following is a reconciliation of net income (loss) attributable to Granite and related weighted average shares of common stock outstanding for purposes of calculating basic and diluted net income (loss) per share using the two-class method (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2013		2012		2013			2012
Basic
Numerator:
Net income (loss) attributable to Granite	$	2,718	$	1,949	$	(19,264	)	$	(9,824	)
Less: net income allocated to participating securities	—		10		—			—
Net income (loss) allocated to common shareholders for basic calculation	$	2,718	$	1,939	$	(19,264	)	$	(9,824	)
Denominator:
Weighted average common shares outstanding, basic	38,829		38,471		38,720			38,368
Net income (loss) per share, basic	$	0.07	$	0.05	$	(0.50	)	$	(0.26	)
Diluted
Numerator:
Net income (loss) attributable to Granite	$	2,718	$	1,949	$	(19,264	)	$	(9,824	)
Less: net income allocated to participating securities	—		10		—			—
Net income (loss) allocated to common shareholders for diluted calculation	$	2,718	$	1,939	$	(19,264	)	$	(9,824	)
Denominator:
Weighted average common shares outstanding, diluted	39,769		39,151		38,720			38,368
Net income (loss) per share, diluted	$	0.07	$	0.05	$	(0.50	)	$	(0.26	)

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Real Estate Entities and Investments in Affiliates

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements [Abstract]

Real Estate Entities and Investments in Affiliates

Real Estate Entities and Investments in Affiliates

The operations of our Real Estate segment are conducted through our wholly owned subsidiary, Granite Land Company (“GLC”). Generally, GLC participates with third-party partners in entities that are formed to accomplish specific real estate development projects. Our real estate affiliates include limited partnerships or limited liability companies of which we are a limited partner or member. The agreements with GLC’s partners in these real estate entities define each partner’s management role and financial responsibility in the project. If one of GLC’s partners is unable to fulfill its management role or make its required financial contribution, GLC may assume full management or financial responsibility for the project. This may result in the future consolidation of entities that are currently accounted for under the equity method in our condensed consolidated financial statements. The amount of GLC’s exposure is limited to GLC’s equity investment in the real estate joint venture. Our proportionate share of the profits and losses of these entities depends on the ultimate operating results of the entities.

Substantially all the assets of these real estate entities in which we are participants through our GLC subsidiary are classified as real estate held for development and sale and are pledged as collateral for the associated debt. All outstanding debt of these entities is non-recourse to Granite. However, there is recourse to our real estate affiliates that incurred the debt (i.e., the limited partnership or limited liability company of which we are a limited partner or member).

GLC receives authorization to provide additional financial support for certain of its real estate entities in increments to address changes in business plans. During the six months ended June 30, 2013, GLC was authorized to increase its financial support to one consolidated real estate entity by $5.9 million to meet existing debt obligations, and during the six months ended June 30, 2012 there was no increase to its authorized financial support. As of June 30, 2013, $3.4 million of the total authorized investment had yet to be contributed to the consolidated entity.

We have determined that certain of these joint ventures are consolidated because they are VIEs and we are the primary beneficiary. The factors we consider in determining whether we are a VIE’s primary beneficiary include the decision authority of each partner, which partner manages the day-to-day operations of the project and the amount of our equity investment in relation to that of our partners.

We continually evaluate whether there are changes in the status of the VIE’s or changes to the primary beneficiary designation of the VIE. Based on our assessments during the six months ended June 30, 2013 and 2012, we determined no change was required for existing real estate entities.

To determine if impairment charges should be recognized, the carrying amount of each consolidated real estate development project is reviewed on a quarterly basis. Based on our quarterly evaluations of each project’s business plan, we recorded no material impairment charges to our real estate development projects or investments during the three and six months ended June 30, 2013 and 2012.

Consolidated Real Estate Entities

As of June 30, 2013, December 31, 2012 and June 30, 2012, real estate held for development and sale associated with consolidated real estate entities included in our condensed consolidated balance sheets was $50.7 million, $50.2 million and $57.4 million, respectively. Non-recourse debt, including current maturities, associated with these entities was $9.5 million, $11.6 million and $21.0 million as of June 30, 2013, December 31, 2012 and June 30, 2012, respectively. All other amounts associated with these entities were insignificant for the periods presented. As of June 30, 2013, December 31, 2012 and June 30, 2012, $40.7 million, $40.3 million and $47.5 million, respectively, of the real estate held for development and sale balances were in Washington residential real estate. The remaining balances were primarily in various commercial projects in Texas and California.

Investments in Affiliates

Our investments in affiliates balance consists of the following:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Equity method investments in real estate affiliates	$	20,378	$	19,775	$	17,563
Equity method investments in other affiliates	11,043		11,024		10,958
Total investments in affiliates	$	31,421	$	30,799	$	28,521

We have determined that certain real estate joint ventures are not consolidated because they are VIEs and we are not the primary beneficiary. We have determined that certain non-real estate joint ventures are not consolidated because they are not VIEs and we do not hold the majority voting interest. As such, these entities were accounted for using the equity method. We account for our share of the operating results of these equity method investments in other income in the condensed consolidated statements of operations and as a single line item on our condensed consolidated balance sheets as investments in affiliates.

The equity method investments in real estate included $14.1 million, $13.8 million and $12.2 million in residential real estate in Texas as of June 30, 2013, December 31, 2012 and June 30, 2012, respectively. The remaining balances were in commercial real estate in Texas. As of June 30, 2013, these real estate entities had total assets ranging from approximately $1.9 million to $47.2 million. As of each of the periods presented, the most significant non-real estate equity method investment was a 50% interest in a limited liability company which owns and operates an asphalt terminal and operates an emulsion plant in Nevada.

The following table provides summarized balance sheet information for our affiliates accounted for under the equity method on a combined basis:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Total assets	$	160,422	$	166,112	$	158,431
Net assets	93,771		92,106		87,197
Granite’s share of net assets	31,421		30,799		28,521

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Acquisition Acquired Intangibles Amortiation (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization expense	$ 2,300	$ 1,000	$ 4,500	$ 2,100
Kenny [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization expense	181		362
Large Project Construction [Member] | Kenny [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization expense	140		247
Construction [Member] | Kenny [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization expense	$ 1,600		$ 3,200

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Receivables, Net (Tables)

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Receivables, net

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Construction contracts:
Completed and in progress	$	207,488	$	195,244	$	146,509
Retentions	76,288		93,800		66,265
Total construction contracts	283,776		289,044		212,774
Construction material sales	43,535		26,918		50,205
Other	11,700		12,316		12,624
Total gross receivables	339,011		328,278		275,603
Less: allowance for doubtful accounts	2,593		2,749		3,041
Total net receivables	$	336,418	$	325,529	$	272,562

Schedule Of Escrow and Non Escrow Retention Receivable [Table Text Block]

We segregate our retention receivables into two categories: escrow and non-escrow. The balances in each category were as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Escrow	$	31,892	$	41,494	$	42,421
Non-escrow	44,396		52,306		23,844
Total retention receivables	$	76,288	$	93,800	$	66,265

Schedule of Non Escrow Receivables [Table Text Block]

The following table summarizes the amount of our non-escrow retention receivables within each category:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Federal	$	3,325	$	3,234	$	2,464
State	2,757		2,971		4,626
Local	32,500		31,559		9,944
Private	5,814		14,542		6,810
Total	$	44,396	$	52,306	$	23,844

Aging of Financing Receivables [Table Text Block]

The following tables present the aging of our non-escrow retention receivables (in thousands):

June 30, 2013	Current		1 - 90 Days Past Due		Over 90 Days Past Due		Total
Federal	$	2,551	$	236	$	538	$	3,325
State	1,327		619		811		2,757
Local	25,362		1,496		5,642		32,500
Private	4,571		634		609		5,814
Total	$	33,811	$	2,985	$	7,600	$	44,396

December 31, 2012	Current		1 - 90 Days Past Due		Over 90 Days Past Due		Total
Federal	$	3,116	$	72	$	46	$	3,234
State	2,148		502		321		2,971
Local	25,743		1,082		4,734		31,559
Private	13,310		716		516		14,542
Total	$	44,317	$	2,372	$	5,617	$	52,306

June 30, 2012	Current		1 - 90 Days Past Due		Over 90 Days Past Due		Total
Federal	$	1,746	$	—	$	718	$	2,464
State	3,552		208		866		4,626
Local	7,330		1,326		1,288		9,944
Private	6,363		92		355		6,810
Total	$	18,991	$	1,626	$	3,227	$	23,844

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Marketable Securities - Maturities of Held to Maturity Investments (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013
Marketable Securities [Abstract]
Held-to-maturity investments, maturities due within one year	$ 21,271
Held-to-maturity investments, maturities due in one to five years	55,225
Held-to-maturity investments, total maturities due	$ 76,496

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Restructuring

6 Months Ended

Jun. 30, 2013

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

We recorded net gains on restructuring of $0.5 million and $1.9 million during the six months ended June 30, 2013 and 2012, respectively. During 2013, we may record up to approximately $25.0 million of restructuring charges, primarily related to previously planned consolidation efforts and assets to be held-for-sale as part of our Enterprise Improvement Plan. The ultimate amount and timing of future restructuring charges is subject to market conditions and our ability to negotiate sales of certain assets at prices acceptable to us.

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Construction and Line Item Joint Ventures

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements [Abstract]

Construction and Line Item Joint Ventures

Construction and Line Item Joint Ventures

We participate in various construction joint venture partnerships and two limited liability company. We also participate in various “line item” joint venture agreements under which each partner is responsible for performing certain discrete items of the total scope of contracted work.

Our agreements with our joint venture partners for both construction joint ventures and line item joint ventures provide that each party will pay for any losses it is responsible for under the joint venture agreement. Circumstances that could lead to a loss under our joint venture arrangements beyond our stated ownership interest include the failure of a partner to contribute additional funds to the venture in the event the project incurs a loss or additional costs that we could incur should a partner fail to provide the services and resources that it had committed to provide in the joint venture agreement. Due to the joint and several nature of the obligations under our joint venture arrangements, if one of our joint venture partners fails to perform, we and the remaining joint venture partners would be responsible for performance of the outstanding work.

At June 30, 2013, there was approximately $5.1 billion of construction revenue to be recognized on unconsolidated and line item construction joint venture contracts of which $1.4 billion represented our share and the remaining $3.7 billion represented our partners’ share. We are not able to estimate amounts that may be required beyond the remaining cost of the work to be performed. These costs could be offset by billings to the customer or by proceeds from our partners’ corporate and/or other guarantees.

Construction Joint Ventures

Generally, each construction joint venture is formed to complete a specific contract and is jointly controlled by the joint venture partners. The joint venture agreements typically provide that our interests in any profits and assets, and our respective share in any losses and liabilities resulting from the performance of the contracts, are limited to our stated percentage interest in the project. We have no significant commitments beyond completion of the contracts. Under our contractual arrangements, we provide capital to these joint ventures in return for an ownership interest. In addition, partners dedicate resources to the ventures necessary to complete the contracts and are reimbursed for their cost. The operational risks of each construction joint venture are passed along to the joint venture partners. As we absorb our share of these risks, our investment in each venture is exposed to potential losses.

We have determined that certain of these joint ventures are consolidated because they are variable interest entities (“VIEs”) and we are the primary beneficiary, or because they are not VIEs and we hold the majority voting interest. The factors we consider in determining whether we are a VIE’s primary beneficiary include the decision authority of each partner, which partner manages the day-to-day operations of the project and the amount of our equity investment in relation to that of our partners. Based on our initial primary beneficiary analysis for one construction joint venture, we determined that decision making responsibility is shared between the venture partners. Therefore, this joint venture did not have an identifiable primary beneficiary partner and we continue to report the pro rata results. All other joint ventures were assigned one primary beneficiary partner.

We continually evaluate whether there are changes in the status of the VIE’s or changes to the primary beneficiary designation of the VIE. Based on our assessments during the six months ended June 30, 2013 and 2012, we determined no change was required to the accounting for existing construction joint ventures.

Consolidated Construction Joint Ventures

The carrying amounts and classification of assets and liabilities of construction joint ventures we are required to consolidate are included in our condensed consolidated financial statements as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Cash and cash equivalents1	$	63,806	$	105,865	$	67,685
Receivables, net	59,807		43,902		26,903
Other current assets	3,592		4,008		2,125
Total current assets	127,205		153,775		96,713
Property and equipment, net	34,891		41,114		6,919
Other noncurrent assets	1,253		1,700		—
Total assets2	$	163,349	$	196,589	$	103,632
Accounts payable	$	18,297	$	34,536	$	31,135
Billings in excess of costs and estimated earnings1	72,094		72,490		17,979
Accrued expenses and other current liabilities	9,153		8,312		3,027
Total liabilities2	$	99,544	$	115,338	$	52,141

¹The volume and stage of completion of contracts from our consolidated construction joint ventures may cause fluctuations in cash and cash equivalents, as well as billings in excess of costs and estimated earnings between periods.

²The assets and liabilities of each joint venture relate solely to that joint venture. The decision to distribute joint venture cash and cash equivalents and assets must generally be made jointly by all of the partners and, accordingly, these cash and cash equivalents and assets generally are not available for the working capital needs of Granite until distributed.

At June 30, 2013, we were engaged in four active consolidated construction joint venture projects with total contract values ranging from $0.4 million to $336.9 million. The total revenue remaining to be recognized on these consolidated joint ventures ranged from $0.4 million to $120.5 million. Our proportionate share of the equity in these joint ventures was between 51.0% and 65.0%. During the three and six months ended June 30, 2013, total revenue from consolidated construction joint ventures was $45.5 million and $88.7 million, respectively. During the three and six months ended June 30, 2012, total revenue from consolidated construction joint ventures was $55.0 million and $96.6 million, respectively. Total cash used in consolidated construction joint venture operations was $16.3 million and $1.9 million during the six months ended June 30, 2013 and 2012, respectively.

Unconsolidated Construction Joint Ventures

We account for our share of construction joint ventures that we are not required to consolidate on a pro rata basis in the condensed consolidated statements of operations and as a single line item on the condensed consolidated balance sheets. As of June 30, 2013, these unconsolidated joint ventures were engaged in twelve active construction projects with total contract values ranging from $40.3 million to $3.1 billion. Our proportionate share of the equity in these unconsolidated joint ventures ranged from 20.0% to 50.0%. As of June 30, 2013, our share of the revenue remaining to be recognized on these unconsolidated joint ventures ranged from $0.3 million to $722.9 million.

As of June 30, 2013, one of our unconsolidated construction joint ventures was located in Canada and, therefore, the associated disclosures throughout this footnote include amounts that were translated from Canadian dollars to U.S. dollars using the spot rate in effect as of the reporting date for balance sheet items, or the average rate in effect during the reporting period for results of operations. The associated foreign currency translation adjustments did not have a material impact on the financial statements for any of the periods presented.

Following is summary financial information related to unconsolidated construction joint ventures:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Assets:
Cash and cash equivalents1	$	342,534	$	244,686	$	337,102
Other assets	439,812		301,412		300,744
Less partners’ interest	512,775		342,545		392,139
Granite’s interest	269,571		203,553		245,707
Liabilities:
Accounts payable	115,606		114,039		101,782
Billings in excess of costs and estimated earnings1	262,259		161,268		265,883
Other liabilities	25,733		6,106		8,455
Less partners’ interest	282,521		183,432		238,234
Granite’s interest	121,077		97,981		137,886
Equity in construction joint ventures2	$	148,494	$	105,572	$	107,821

¹The volume and stage of completion of contracts from our unconsolidated construction joint ventures may cause fluctuations in cash and cash equivalents, as well as billings in excess of costs and estimated earnings between periods. The decision to distribute joint venture cash and cash equivalents and assets must generally be made jointly by all of the partners and, accordingly, these cash and cash equivalents and assets generally are not available for the working capital needs of Granite until distributed.

²As of June 30, 2013 and December 31, 2012, this balance included $0.2 million of deficit in unconsolidated construction joint ventures that is included in accrued expenses and other current liabilities on the condensed consolidated balance sheets.

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2013		2012		2013		2012
Revenue:
Total1	$	259,255	$	284,095	$	484,558	$	489,926
Less partners’ interest1,2	172,656		183,861		326,361		316,064
Granite’s interest	86,599		100,234		158,197		173,862
Cost of revenue:
Total1	212,779		227,389		371,475		397,001
Less partners’ interest1,2	141,659		150,091		248,980		259,331
Granite’s interest	71,120		77,298		122,495		137,670
Granite’s interest in gross profit	$	15,479	$	22,936	$	35,702	$	36,192

¹While Granite’s interest in revenue, cost of revenue and gross profit were correctly stated, total and partners’ interest for revenue and cost of revenue for the three and six month periods ended June 30, 2012 were inadvertently misstated in our Quarterly Report for the quarter ended June 30, 2012. Total revenue, partner’s interest in revenue, total cost of revenue and partners’ interest in cost of revenue reported were (in thousands): $663,536, $563,302, $544,838 and $467,540, respectively, for the three months ended June 30, 2012, and $869,368, $695,505, $714,450 and $576,780, respectively, for the six months ended June 30, 2012.

²Partners’ interest represents amounts to reconcile total revenue and total cost of revenue as reported by our partners to Granite’s interest, adjusted to reflect our accounting policies.

Line Item Joint Ventures

The revenue for each line item joint venture partner’s discrete items of work is defined in the contract with the project owner and each venture partner bears the profitability risk associated with its own work. There is not a single set of books and records for a line item joint venture. Each partner accounts for its items of work individually as it would for any self-performed contract. We include only our portion of these contracts in our condensed consolidated financial statements. As of June 30, 2013, we had five active line item joint venture construction projects with total contract values ranging from $42.2 million to $138.2 million of which our portion ranged from $25.1 million to $59.5 million. As of June 30, 2013, our share of revenue remaining to be recognized on these line item joint ventures ranged from $0.3 million to $23.8 million.

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Basis of Presentation

6 Months Ended

Jun. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The condensed consolidated financial statements included herein have been prepared by Granite Construction Incorporated (“we,” “us,” “our,” “Company” or “Granite”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2012. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted, although we believe the disclosures which are made are adequate to make the information presented not misleading. Further, the condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary to state fairly our financial position at June 30, 2013 and 2012 and the results of our operations and cash flows for the periods presented. The December 31, 2012 condensed consolidated balance sheet data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP.

We prepared the accompanying condensed consolidated financial statements on the same basis as our annual consolidated financial statements except for the adoption of the following new accounting standards in the first quarter of 2013:

• In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, Balance Sheet (Topic 210):Disclosures about Offsetting Assets and Liabilities and in January 2013, issued ASU No. 2013-01, Balance Sheet (Topic 210):Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. These ASUs require companies to disclose both gross and net information about financial instruments that have been offset on the balance sheet. These ASUs became effective for our quarter ended March 31, 2013 and did not impact our condensed consolidated financial statements.

• In July 2012, the FASB issued ASU No. 2012-02, Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. This ASU gives companies the option to first assess qualitative factors to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If it is determined that it is more likely than not the indefinite-lived intangible asset is impaired, a quantitative impairment test is required. However, if it is concluded otherwise, the quantitative test is not necessary. This ASU became effective for our quarter ended March 31, 2013. No impairment analysis was necessary in relation to our indefinite lived intangible assets during the six months ended June 30, 2013; therefore, the adoption of this ASU had no impact to our condensed consolidated financial statements.

• In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income in certain circumstances. This ASU was effective commencing with our quarter ended March 31, 2013. For all periods presented comprehensive loss was equal to net loss; therefore, the adoption of this ASU did not have an impact on our condensed consolidated financial statements.

Our operations are typically affected by weather conditions during the first and fourth quarters of our fiscal year which may alter our construction schedules and can create variability in our revenues and profitability. Therefore, the results of operations for the three and six months ended June 30, 2013 are not necessarily indicative of the results to be expected for the full year.

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Intangible Assets - Indefinite Lived Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012
Indefinite-lived Intangible Assets by Major Class [Line Items]
Finite-Lived Intangible Assets, Gross	$ 48,570	$ 49,370	$ 34,370
Goodwill	53,598	55,419	9,900
Construction [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Goodwill	28,300	29,190	6,936
Large Project Construction [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Goodwill	23,184	24,115	850
Construction Materials [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Goodwill	2,114	2,114	2,114
Use Rights [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Finite-Lived Intangible Assets, Gross	$ 400	$ 400	$ 400

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Construction and Line Item Joint Ventures - Consolidated Construction Joint Ventures (Details) (USD $)	3 Months Ended				6 Months Ended
	Jun. 30, 2013		Jun. 30, 2012		Jun. 30, 2013		Jun. 30, 2012		Dec. 31, 2012		Dec. 31, 2011
Construction Joint Venture [Line Items]
Cash and cash equivalents	$ 247,833,000		$ 237,951,000		$ 247,833,000		$ 237,951,000		$ 321,990,000		$ 256,990,000
Other current assets	35,651,000		20,436,000		35,651,000		20,436,000		31,834,000
Total current assets	1,009,530,000		915,159,000		1,009,530,000		915,159,000		1,022,057,000
Property and equipment, net	471,265,000		439,664,000		471,265,000		439,664,000		481,478,000
Other noncurrent assets	80,365,000		68,603,000		80,365,000		68,603,000		84,392,000
Total assets	1,701,404,000		1,507,647,000		1,701,404,000		1,507,647,000		1,729,487,000
Accounts payable	188,124,000		186,290,000		188,124,000		186,290,000		202,541,000
Billings in excess of costs and estimated earnings	144,044,000		75,629,000		144,044,000		75,629,000		139,692,000
Accrued expenses and other current liabilities	200,521,000		155,322,000		200,521,000		155,322,000		169,979,000
Total current liabilities	534,856,000		442,671,000		534,856,000		442,671,000		531,272,000
Construction	308,602,000		245,113,000		485,720,000		363,059,000
Net Cash Provided by (Used in) Operating Activities					(51,648,000)		(34,624,000)
Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Number of Active Joint Venture Projects	5				5
Partnership Interest [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Revenue Remaining to be Recognized on Unconsolidated Construction Joint Ventures	5,100,000,000				5,100,000,000
Joint Venture Consolidated [Member] | Consolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Cash and cash equivalents	63,806,000	[1]	67,685,000	[1]	63,806,000	[1]	67,685,000	[1]	105,865,000	[1]
Receivables, Net, Current	59,807,000		26,903,000		59,807,000		26,903,000		43,902,000
Other current assets	3,592,000		2,125,000		3,592,000		2,125,000		4,008,000
Property and equipment, net	34,891,000		6,919,000		34,891,000		6,919,000		41,114,000
Other noncurrent assets	1,253,000		0		1,253,000		0		1,700,000
Total assets	163,349,000	[2]	103,632,000	[2]	163,349,000	[2]	103,632,000	[2]	196,589,000	[2]
Accounts payable	18,297,000		31,135,000		18,297,000		31,135,000		34,536,000
Billings in excess of costs and estimated earnings	72,094,000	[1]	17,979,000	[1]	72,094,000	[1]	17,979,000	[1]	72,490,000	[1]
Accrued expenses and other current liabilities	9,153,000		3,027,000		9,153,000		3,027,000		8,312,000
Total liabilities	99,544,000	[2]	52,141,000	[2]	99,544,000	[2]	52,141,000	[2]	115,338,000	[2]
Number of Active Joint Venture Projects	4				4
Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Number of Active Joint Venture Projects	12				12
Reporting Entitys Interest in Joint Venture [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Revenue Remaining to be Recognized on Unconsolidated Construction Joint Ventures	1,400,000,000				1,400,000,000
Other Partners Interest in Partnerships [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Revenue Remaining to be Recognized on Unconsolidated Construction Joint Ventures	3,700,000,000				3,700,000,000
Minimum [Member] | Joint Venture Consolidated [Member] | Consolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	400,000				400,000
Revenue Remaining to be Recognized on Consolidated Construction Joint Ventures	400,000				400,000
Proportionate Share of the Consolidated Joint Ventures Equity Owned by or Beneficial Interest in the Reporting Entity Directly or Indirectly	51.00%				51.00%
Construction	45,500,000		55,000,000		88,700,000		96,600,000
Net Cash Provided by (Used in) Operating Activities					(16,300,000)		(1,900,000)
Minimum [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	40,300,000				40,300,000
Proportionate Share of the Consolidated Joint Ventures Equity Owned by or Beneficial Interest in the Reporting Entity Directly or Indirectly	20.00%				20.00%
Minimum [Member] | Joint Venture Unconsolidated [Member] | Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	42,200,000				42,200,000
Minimum [Member] | Reporting Entitys Interest in Joint Venture [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Revenue Remaining to be Recognized on Unconsolidated Construction Joint Ventures	300,000				300,000
Minimum [Member] | Reporting Entitys Interest in Joint Venture [Member] | Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	25,100,000				25,100,000
Maximum [Member] | Joint Venture Consolidated [Member] | Consolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	336,900,000				336,900,000
Revenue Remaining to be Recognized on Consolidated Construction Joint Ventures	120,500,000				120,500,000
Proportionate Share of the Consolidated Joint Ventures Equity Owned by or Beneficial Interest in the Reporting Entity Directly or Indirectly	65.00%				65.00%
Maximum [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	3,100,000,000				3,100,000,000
Proportionate Share of the Consolidated Joint Ventures Equity Owned by or Beneficial Interest in the Reporting Entity Directly or Indirectly	50.00%				50.00%
Maximum [Member] | Joint Venture Unconsolidated [Member] | Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	138,200,000				138,200,000
Maximum [Member] | Reporting Entitys Interest in Joint Venture [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Revenue Remaining to be Recognized on Unconsolidated Construction Joint Ventures	722,900,000				722,900,000
Maximum [Member] | Reporting Entitys Interest in Joint Venture [Member] | Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	$ 59,500,000				$ 59,500,000

[1] The volume and stage of completion of contracts from our consolidated construction joint ventures may cause fluctuations in cash and cash equivalents, as well as billings in excess of costs and estimated earnings between periods.

[2] The assets and liabilities of each joint venture relate solely to that joint venture. The decision to distribute joint venture cash and cash equivalents and assets must generally be made jointly by all of the partners and, accordingly, these cash and cash equivalents and assets generally are not available for the working capital needs of Granite until distributed.

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Property and Equipment, Net (Tables)

6 Months Ended

Jun. 30, 2013

Property, Plant and Equipment [Abstract]

Property and Equipment

Balances of major classes of assets and allowances for depreciation and depletion are included in property and equipment, net on our condensed consolidated balance sheets as follows:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Equipment and vehicles	$	760,271	$	758,782	$	722,724
Quarry property	180,325		180,567		177,792
Land and land improvements	125,489		125,961		126,396
Buildings and leasehold improvements	83,733		83,245		80,910
Office furniture and equipment	68,822		67,743		63,414
Property and equipment	1,218,640		1,216,298		1,171,236
Less: accumulated depreciation and depletion	747,375		734,820		731,572
Property and equipment, net	$	471,265	$	481,478	$	439,664

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Business Segment Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Segment Reporting Information [Line Items]
Revenue from reportable segments	$ 587,849	$ 592,118	$ 975,192	$ 907,664
Elimination of intersegment revenue	(37,687)	(52,503)	(46,326)	(57,889)
Revenue from external customers	550,162	539,615	928,866	849,775
Gross profit	51,197	51,916	81,253	76,852
Depreciation, Depletion and Amortization, Nonproduction	15,106	11,321	28,306	23,547
Assets	1,701,404	1,507,647	1,701,404	1,507,647	1,729,487
Reconciliation from Segment Totals to Consolidated [Abstract]
Gross profit	51,197	51,916	81,253	76,852
Selling, general and administrative expenses	46,454	40,806	104,112	85,882
Gain on restructuring	0	0	(497)	(1,888)
Gain on sales of property and equipment	3,306	2,954	4,394	4,871
Other income (expense), net	(3,117)	(7,718)	(5,954)	(3,602)
Income (loss) before benefit from income taxes	4,932	6,346	(23,922)	(5,873)
Construction [Member]
Segment Reporting Information [Line Items]
Revenue from reportable segments	308,602	245,113	485,720	363,059
Elimination of intersegment revenue	0	0	0	0
Revenue from external customers	308,602	245,113	485,720	363,059
Gross profit	25,154	17,961	38,353	26,541
Depreciation, Depletion and Amortization, Nonproduction	6,033	3,233	11,692	6,813
Assets	161,524	110,119	161,524	110,119
Reconciliation from Segment Totals to Consolidated [Abstract]
Gross profit	25,154	17,961	38,353	26,541
Large Project Construction [Member]
Segment Reporting Information [Line Items]
Revenue from reportable segments	181,371	228,799	353,086	392,727
Elimination of intersegment revenue	0	0	0	0
Revenue from external customers	181,371	228,799	353,086	392,727
Gross profit	22,088	28,239	44,808	50,488
Depreciation, Depletion and Amortization, Nonproduction	3,182	909	5,158	2,177
Assets	206,778	119,652	206,778	119,652
Reconciliation from Segment Totals to Consolidated [Abstract]
Gross profit	22,088	28,239	44,808	50,488
Construction Materials [Member]
Segment Reporting Information [Line Items]
Revenue from reportable segments	97,872	115,852	136,261	146,861
Elimination of intersegment revenue	(37,687)	(52,503)	(46,326)	(57,889)
Revenue from external customers	60,185	63,349	89,935	88,972
Gross profit	3,954	5,000	(2,020)	(950)
Depreciation, Depletion and Amortization, Nonproduction	5,891	7,179	11,456	14,557
Assets	351,295	365,690	351,295	365,690
Reconciliation from Segment Totals to Consolidated [Abstract]
Gross profit	3,954	5,000	(2,020)	(950)
Real Estate Segment [Member]
Segment Reporting Information [Line Items]
Revenue from reportable segments	4	2,354	125	5,017
Elimination of intersegment revenue	0	0	0	0
Revenue from external customers	4	2,354	125	5,017
Gross profit	1	716	112	773
Depreciation, Depletion and Amortization, Nonproduction	0	0	0	0
Assets	50,697	57,367	50,697	57,367
Reconciliation from Segment Totals to Consolidated [Abstract]
Gross profit	1	716	112	773
Operating Segments [Member]
Segment Reporting Information [Line Items]
Assets	$ 770,294	$ 652,828	$ 770,294	$ 652,828

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Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings Per Share

We calculate earnings per share (“EPS”) under the two-class method by allocating earnings to both common shares and unvested restricted stock which are considered participating securities. However, net losses are not allocated to participating securities for purposes of computing EPS under the two-class method. The following is a reconciliation of net income (loss) attributable to Granite and related weighted average shares of common stock outstanding for purposes of calculating basic and diluted net income (loss) per share using the two-class method (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2013		2012		2013			2012
Basic
Numerator:
Net income (loss) attributable to Granite	$	2,718	$	1,949	$	(19,264	)	$	(9,824	)
Less: net income allocated to participating securities	—		10		—			—
Net income (loss) allocated to common shareholders for basic calculation	$	2,718	$	1,939	$	(19,264	)	$	(9,824	)
Denominator:
Weighted average common shares outstanding, basic	38,829		38,471		38,720			38,368
Net income (loss) per share, basic	$	0.07	$	0.05	$	(0.50	)	$	(0.26	)
Diluted
Numerator:
Net income (loss) attributable to Granite	$	2,718	$	1,949	$	(19,264	)	$	(9,824	)
Less: net income allocated to participating securities	—		10		—			—
Net income (loss) allocated to common shareholders for diluted calculation	$	2,718	$	1,939	$	(19,264	)	$	(9,824	)
Denominator:
Weighted average common shares outstanding, diluted	39,769		39,151		38,720			38,368
Net income (loss) per share, diluted	$	0.07	$	0.05	$	(0.50	)	$	(0.26	)

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Intangible Assets

6 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

Indefinite-lived Intangible Assets:

Indefinite-lived intangible assets primarily consist of goodwill and use rights. Use rights of $0.4 million are included in other noncurrent assets on our condensed consolidated balance sheets as of June 30, 2013, December 31, 2012 and June 30, 2012.

The following table presents the goodwill balance by reporting segment:

(in thousands)	June 30, 2013		December 31, 2012		June 30, 2012
Construction	$	28,300	$	29,190	$	6,936
Large Project Construction	23,184		24,115		850
Construction Materials	2,114		2,114		2,114
Total goodwill	$	53,598	$	55,419	$	9,900

Amortized Intangible Assets:

Following is the breakdown of our amortized intangible assets that are included in other noncurrent assets on our condensed consolidated balance sheets:

June 30, 2013			Accumulated
(in thousands)	Gross Value		Amortization			Net Book Value
Permits	$	29,713	$	(11,430	)	$	18,283
Customer lists	4,398		(2,344		)	2,054
Covenants not to compete	1,588		(1,550		)	38
Acquired backlog	7,900		(3,447		)	4,453
Trade name	4,100		(216		)	3,884
Other	871		(797		)	74
Total amortized intangible assets	$	48,570	$	(19,784	)	$	28,786

December 31, 2012
(in thousands)
Permits	$	29,713	$	(10,869	)	$	18,844
Customer lists	4,698		(2,170		)	2,528
Covenants not to compete	1,588		(1,546		)	42
Acquired backlog	8,400		—			8,400
Trade name	4,100		—			4,100
Other	871		(734		)	137
Total amortized intangible assets	$	49,370	$	(15,319	)	$	34,051

June 30, 2012
(in thousands)
Permits	$	29,713	$	(9,494	)	$	20,219
Customer lists	2,198		(2,056		)	142
Covenants not to compete	1,588		(1,536		)	52
Other	871		(658		)	213
Total amortized intangible assets	$	34,370	$	(13,744	)	$	20,626

Amortization expense related to these intangible assets for the three and six months ended June 30, 2013 was approximately $2.3 million and $4.5 million, respectively, and approximately $1.0 million and $2.1 million for the three and six months ended June 30, 2012, respectively. Based on the amortized intangible assets balance at June 30, 2013, amortization expense expected to be recorded in the future is as follows: $4.8 million for the remainder of 2013; $2.2 million in 2014; $2.1 million in 2015; $1.8 million in 2016; $1.8 million in 2017; and $16.1 million thereafter.

The change in goodwill and in the gross value of amortized intangible assets during each period is due to the acquisition of Kenny Construction Company (“Kenny”). See Note 17 for further details.

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Business Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

Our reportable segments are: Construction, Large Project Construction, Construction Materials and Real Estate. 

The Construction segment performs various construction projects with a large portion of the work focused on new construction and improvement of streets, roads, highways, bridges, site work and other infrastructure projects. These projects are typically bid-build projects completed within two years with a contract value of less than $75 million.

The Large Project Construction segment focuses on large, complex infrastructure projects which typically have longer duration than our Construction segment work. These projects include major highways, mass transit facilities, bridges, tunnels, waterway locks and dams, pipelines, canals and airport infrastructure. This segment primarily includes bid-build, design-build and construction management/general contractor contracts, generally with contract values in excess of $75 million.

The Construction Materials segment mines and processes aggregates and operates plants that produce construction materials for internal use and for sale to third parties.

The Real Estate segment develops, operates, and sells real estate related projects and provides real estate services for the Company’s operations. The Real Estate segment’s current portfolio consists of residential, retail and office site development projects for sale to home and commercial property developers in Washington, California and Texas. In October 2010, we announced our Enterprise Improvement Plan that includes plans to orderly divest of our real estate investment business consistent with our strategy to focus on our core business.

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies contained in our 2012 Annual Report on Form 10-K. We evaluate segment performance based on gross profit or loss, and do not include overhead and non-operating income or expense. Segment assets include property and equipment, intangibles, goodwill, inventory, equity in construction joint ventures and real estate held for development and sale.

Summarized segment information is as follows:

	Three Months Ended June 30,
(in thousands)	Construction		Large Project Construction		Construction Materials			Real Estate		Total
2013
Total revenue from reportable segments	$	308,602	$	181,371	$	97,872		$	4	$	587,849
Elimination of intersegment revenue	—		—		(37,687		)	—		(37,687		)
Revenue from external customers	308,602		181,371		60,185			4		550,162
Gross profit	25,154		22,088		3,954			1		51,197
Depreciation, depletion and amortization	6,033		3,182		5,891			—		15,106
2012
Total revenue from reportable segments	$	245,113	$	228,799	$	115,852		$	2,354	$	592,118
Elimination of intersegment revenue	—		—		(52,503		)	—		(52,503		)
Revenue from external customers	245,113		228,799		63,349			2,354		539,615
Gross profit	17,961		28,239		5,000			716		51,916
Depreciation, depletion and amortization	3,233		909		7,179			—		11,321

	Six Months Ended June 30,
(in thousands)	Construction		Large Project Construction		Construction Materials			Real Estate		Total
2013
Total revenue from reportable segments	$	485,720	$	353,086	$	136,261		$	125	$	975,192
Elimination of intersegment revenue	—		—		(46,326		)	—		(46,326		)
Revenue from external customers	485,720		353,086		89,935			125		928,866
Gross profit (loss)	38,353		44,808		(2,020		)	112		81,253
Depreciation, depletion and amortization	11,692		5,158		11,456			—		28,306
Segment assets	161,524		206,778		351,295			50,697		770,294
2012
Total revenue from reportable segments	$	363,059	$	392,727	$	146,861		$	5,017	$	907,664
Elimination of intersegment revenue	—		—		(57,889		)	—		(57,889		)
Revenue from external customers	363,059		392,727		88,972			5,017		849,775
Gross profit (loss)	26,541		50,488		(950		)	773		76,852
Depreciation, depletion and amortization	6,813		2,177		14,557			—		23,547
Segment assets	110,119		119,652		365,690			57,367		652,828

A reconciliation of segment gross profit to consolidated income (loss) before provision for (benefit from) income taxes is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2013			2012			2013			2012
Total gross profit from reportable segments	$	51,197		$	51,916		$	81,253		$	76,852
Selling, general and administrative expenses	46,454			40,806			104,112			85,882
Gain on restructuring	—			—			497			1,888
Gain on sales of property and equipment	3,306			2,954			4,394			4,871
Total other expense	(3,117		)	(7,718		)	(5,954		)	(3,602		)
Income (loss) before provision for (benefit from) income taxes	$	4,932		$	6,346		$	(23,922	)	$	(5,873	)

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Equity

6 Months Ended

Jun. 30, 2013

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Equity

The following tables summarize our equity activity for the periods presented:

(in thousands)	Granite Construction Incorporated			Noncontrolling Interests			Total Equity
Balance at December 31, 2012	$	829,953		$	41,905		$	871,858
Purchase of common stock1	(5,022		)	—			(5,022		)
Other transactions with shareholders3	8,796			—			8,796
Transactions with noncontrolling interests, net4	—			(14,701		)	(14,701		)
Net (loss) income	(19,264		)	2,603			(16,661		)
Dividends on common stock	(10,096		)	—			(10,096		)
Balance at June 30, 2013	$	804,367		$	29,807		$	834,174

(in thousands)
Balance at December 31, 2011	$	799,197		$	28,466		$	827,663
Purchase of common stock2	(4,054		)	—			(4,054		)
Other transactions with shareholders3	5,211			—			5,211
Transactions with noncontrolling interests, net4	—			(5,440		)	(5,440		)
Net (loss) income	(9,824		)	5,624			(4,200		)
Dividends on common stock	(10,050		)	—			(10,050		)
Balance at June 30, 2012	$	780,480		$	28,650		$	809,130

¹Represents 168,000 shares purchased in connection with employee tax withholding for shares/units granted under our Amended and Restated 1999 Equity Incentive Plan.

²Represents 139,000 shares purchased in connection with employee tax withholding for shares/units granted under our Amended and Restated 1999 Equity Incentive Plan.

³Amounts are comprised primarily of amortized restricted stock and units.

⁴Amounts are comprised primarily of distributions to noncontrolling partners.

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Document and Entity Information Document	6 Months Ended
	Jun. 30, 2013	Jul. 22, 2013
Entity Information [Line Items]
Entity Registrant Name	GRANITE CONSTRUCTION INC
Entity Central Index Key	0000861459
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		38,874,400

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Legal Proceedings

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings

Legal Proceedings

In the ordinary course of business, we are involved in various legal proceedings that are pending against us and our affiliates alleging, among other things, breach of contract or tort in connection with the performance of professional services, the various outcomes of which cannot be predicted with certainty. The most significant of these proceedings are as follows:

• Investigation Related to Grand Avenue Project Disadvantaged Business Enterprise (“DBE”) Issues: On March 6, 2009, the U.S. Department of Transportation, Office of Inspector General served upon our wholly-owned subsidiary, Granite Construction Northeast, Inc. (“Granite Northeast”), a United States District Court Eastern District of New York Grand Jury subpoena to produce documents. The subpoena sought all documents pertaining to the use of a DBE firm (the “Subcontractor”), and the Subcontractor’s use of a non-DBE lower tier subcontractor/consultant, on the Grand Avenue Bus Depot and Central Maintenance Facility for the Borough of Queens Project (the “Grand Avenue Project”), a Granite Northeast project. The subpoena sought any documents regarding the use of the Subcontractor as a DBE on any other projects and any other documents related to the Subcontractor or to the lower-tier subcontractor/consultant. Granite Northeast produced the requested documents, together with other requested information. Subsequently, Granite Northeast was informed by the DOJ that it is a subject of the investigation, along with others. In January 2013, Granite Northeast met with Assistant United States Attorneys from the DOJ, along with other federal and state agencies (the “Agencies”), to discuss the status of the government’s criminal investigation of the Grand Avenue Project participants and some of their representatives, including Granite Northeast. In addition to the documents produced in response to the Grand Jury subpoena, Granite Northeast has provided information to the Agencies concerning other projects for which Granite Northeast has claimed DBE credit. Granite Northeast is fully cooperating with the Agencies’ investigation. We cannot, however, rule out the possibility of actions being brought against Granite Northeast which could result in civil, criminal, and/or administrative penalties or sanctions. Granite is unable to estimate at this time the entire losses or the most likely amount that it may incur in this matter. Such penalty or sanctions are probable; therefore, Granite recorded the low end of the estimated range of losses. Under certain circumstances the resolution of the matters under investigation could have direct or indirect consequences that could have a material adverse effect on our financial position, results of operations and/or liquidity.

• Other Legal Proceedings/Government Inquiries: We are a party to a number of other legal proceedings arising in the normal course of business. From time to time, we also receive inquiries from public agencies seeking information concerning our compliance with government construction contracting requirements and related laws and regulations. We believe that the nature and number of these proceedings and compliance inquiries are typical for a construction firm of our size and scope. Our litigation typically involves claims regarding public liability or contract related issues. While management currently believes, after consultation with counsel, that the ultimate outcome of pending proceedings and compliance inquiries, individually and in the aggregate, will not have a material adverse effect on our financial position, results of operations or cash flows, litigation is subject to inherent uncertainties. Were one or more unfavorable rulings to occur, there exists the possibility of a material adverse effect on our financial position, results of operations, cash flows and/or liquidity for the period in which the ruling occurs. In addition, our government contracts could be terminated, we could be suspended or debarred, or payment of our costs could be disallowed. While any one of our pending legal proceedings is subject to early resolution as a result of our ongoing efforts to settle, whether or when any legal proceeding will be resolved through settlement is neither predictable nor guaranteed.

We record amounts in our condensed consolidated balance sheets representing our estimated liability relating to legal proceedings and government inquiries. During the three and six months ended June 30, 2013 and 2012, there were no significant additions or revisions to the estimated liability that were recorded in our condensed consolidated statements of operations, or significant changes to our accrual for such litigation loss contingencies on our condensed consolidated balance sheets.

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Acquisition Preliminary Purchase Price Allocation (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012
Business Acquisition [Line Items]
Goodwill, Purchase Accounting Adjustments	$ 1,800
Finite-Lived Intangible Assets, Gross		48,570	49,370	34,370
Goodwill		53,598	55,419	9,900
Kenny [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Cash And Equivalents			53,185
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Current Assets, Receivables			88,725
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Costs And Estimated Earnings In Excess Of Billings			444
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory			731
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Current Assets, Equity In Construction Joint Ventures			7,803
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Current Assets, Other			6,039
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment			52,267
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Customer Relationships			2,200
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Intangible Assets, Other Than Goodwill			14,200
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Current Liabilities, Accounts Payable			43,748
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Current Liabilities, Billings In Excess Of Costs And Estimated Earnings			50,098
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Current Liabilities, Accrued Expenses And Other Current Liabilities			16,806
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value			15,326
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net			97,416
Goodwill			43,698
Total purchase price			141,114
Trade Names [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Gross		4,100	4,100
Order or Production Backlog [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Gross		7,900	7,900
Property, Plant and Equipment, Other Types [Member]
Business Acquisition [Line Items]
Goodwill, Purchase Accounting Adjustments	$ 1,100

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Acquisition (Details) (USD $)	3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended		12 Months Ended	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013 Kenny [Member]	Jun. 30, 2013 Kenny [Member]	Dec. 31, 2012 Kenny [Member] employee office	Dec. 31, 2012 Notes Payable to Banks [Member]	Jun. 30, 2013 Construction [Member] Kenny [Member]	Jun. 30, 2013 Construction [Member] Kenny [Member]
Business Acquisition [Line Items]
Business Acquisitions, Pro Forma Information, Adjustment Payments					$ 4,600,000
Total purchase price							141,114,000
Amortization expense	2,300,000	1,000,000	4,500,000	2,100,000	181,000	362,000			1,600,000	3,200,000
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Cash And Equivalents							53,185,000
Proceeds from Lines of Credit								70,000,000
Entity Number of Employees							475
Number Of Offices							12
Business Acquisitions, Post-Closing Adjustment, Expected Payment					$ 3,900,000	$ 3,900,000