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 September 30, 2014

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 October 21, 2014.

Class	Outstanding
Common Stock, $0.01 par value	39,152,547

Index

PART I. FINANCIAL INFORMATION
	Item 1.	Financial Statements (unaudited)
		Condensed Consolidated Balance Sheets as of September 30, 2014, December 31, 2013 and September 30, 2013 (As Revised)
		Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2014 and 2013 (As Revised)
		Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2014 and 2013 (As Revised)
		Notes to the Condensed Consolidated Financial Statements (As Revised)
	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 10.1
EXHIBIT 10.2
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)
	September 30, 2014		December 31, 2013		September 30, 2013 As Revised
ASSETS
Current assets
Cash and cash equivalents ($29,518, $38,800 and $57,133 related to consolidated construction joint ventures (“CCJVs”))	$	167,174	$	229,121	$	212,463
Short-term marketable securities	27,950		49,968		22,892
Receivables, net ($45,483, $38,372 and $47,696 related to CCJVs)	417,628		313,598		422,609
Costs and estimated earnings in excess of billings ($21,105, $178 and $81 related to CCJVs)	62,823		33,306		40,837
Inventories	74,605		62,474		61,667
Real estate held for development and sale	11,773		12,478		50,250
Deferred income taxes	55,874		55,874		36,687
Equity in construction joint ventures	181,259		162,673		161,063
Other current assets	21,743		30,711		32,836
Total current assets	1,020,829		950,203		1,041,304
Property and equipment, net ($16,172, $22,216 and $28,194 related to CCJVs)	424,272		436,859		458,024
Long-term marketable securities	74,140		67,234		64,014
Investments in affiliates	34,177		32,480		31,338
Goodwill	53,799		53,799		53,799
Other noncurrent assets	75,826		76,580		78,655
Total assets	$	1,683,043	$	1,617,155	$	1,727,134
LIABILITIES AND EQUITY
Current liabilities
Current maturities of long-term debt	$	21	$	21	$	20
Current maturities of non-recourse debt	1,226		1,226		2,147
Accounts payable ($22,951, $16,937 and $20,075 related to CCJVs)	205,493		160,706		198,282
Billings in excess of costs and estimated earnings ($23,138, $60,185 and $70,518 related to CCJVs)	115,809		138,375		146,343
Accrued expenses and other current liabilities ($3,110, $11,299 and $12,816 related to CCJVs)	221,618		197,242		219,169
Total current liabilities	544,167		497,570		565,961
Long-term debt	270,127		270,127		270,148
Long-term non-recourse debt	5,822		6,741		7,048
Other long-term liabilities	45,887		48,580		46,474
Deferred income taxes	9,977		7,793		7,988
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 39,152,255 shares as of September 30, 2014, 38,917,728 shares as of December 31, 2013 and 38,878,194 shares as of September 30, 2013	391		389		388
Additional paid-in capital	132,396		126,449		123,681
Retained earnings	648,017		655,102		689,181
Total Granite Construction Incorporated shareholders’ equity	780,804		781,940		813,250
Non-controlling interests	26,259		4,404		16,265
Total equity	807,063		786,344		829,515
Total liabilities and equity	$	1,683,043	$	1,617,155	$	1,727,134

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 September 30,						Nine Months Ended September 30,
	2014			2013 As Revised			2014			2013 As Revised
Revenue
Construction	$	447,097		$	470,567		$	873,357		$	956,287
Large Project Construction	179,446			185,997			611,110			539,268
Construction Materials	93,214			83,172			200,985			173,107
Real Estate	7			16			29			141
Total revenue	719,764			739,752			1,685,481			1,668,803
Cost of revenue
Construction	398,295			419,848			790,584			868,298
Large Project Construction	173,767			188,160			538,846			497,139
Construction Materials	81,010			75,884			185,536			167,839
Real Estate	—			—			—			14
Total cost of revenue	653,072			683,892			1,514,966			1,533,290
Gross profit	66,692			55,860			170,515			135,513
Selling, general and administrative expenses	47,386			45,527			147,731			149,477
Gain on sales of property and equipment	3,004			3,259			6,891			7,653
Operating income (loss)	22,310			13,592			29,675			(6,311		)
Other income (expense)
Interest income	451			602			1,343			1,110
Interest expense	(2,488		)	(3,736		)	(10,426		)	(11,081		)
Equity in income of affiliates	1,109			(2		)	2,310			273
Other (expense) income, net	(1,196		)	1,022			450			1,630
Total other expense	(2,124		)	(2,114		)	(6,323		)	(8,068		)
Income (loss) before provision for (benefit from) income taxes	20,186			11,478			23,352			(14,379		)
Provision for (benefit from) income taxes	6,081			4,946			8,301			(2,867		)
Net income (loss)	14,105			6,532			15,051			(11,512		)
Amount attributable to non-controlling interests	1,177			6,505			(6,681		)	3,986
Net income (loss) attributable to Granite Construction Incorporated	$	15,282		$	13,037		$	8,370		$	(7,526	)
Net income (loss) per share attributable to common shareholders (see Note 12)
Basic	$	0.39		$	0.34		$	0.21		$	(0.19	)
Diluted	$	0.38		$	0.33		$	0.21		$	(0.19	)
Weighted average shares of common stock
Basic	39,150			38,876			39,073			38,773
Diluted	39,813			39,759			39,790			38,773
Dividends per common share	$	0.13		$	0.13		$	0.39		$	0.39

 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)
Nine Months Ended September 30,	2014			2013 As Revised
Operating activities
Net income (loss)	$	15,051		$	(11,512	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation, depletion and amortization	49,968			54,788
Gain on sales of property and equipment	(6,891		)	(7,653		)
Stock-based compensation	8,933			10,645
Equity in net income from unconsolidated joint ventures	(27,001		)	(51,826		)
Changes in assets and liabilities:
Receivables	(103,913		)	(99,856		)
Costs and estimated earnings in excess of billings, net	(44,126		)	(16,064		)
Inventories	(12,131		)	(1,882		)
Contributions to unconsolidated construction joint ventures	(24,797		)	(28,514		)
Distributions from unconsolidated construction joint ventures	46,991			68,033
Other assets, net	7,250			(4,820		)
Accounts payable	43,710			3,204
Accrued expenses and other current liabilities, net	123			20,942
Net cash used in operating activities	(46,833		)	(64,515		)
Investing activities
Purchases of marketable securities	(49,975		)	(34,957		)
Maturities of marketable securities	40,000			57,000
Proceeds from sale of marketable securities	25,000			5,000
Purchases of property and equipment	(37,471		)	(30,467		)
Proceeds from sales of property and equipment	12,257			18,431
Payment of Kenny post-closing adjustments	—			(8,382		)
Other investing activities, net	(1,109		)	1,088
Net cash (used in) provided by investing activities	(11,298		)	7,713
Financing activities
Long-term debt principal repayments	(919		)	(10,900		)
Cash dividends paid	(15,229		)	(15,150		)
Purchases of common stock	(4,751		)	(5,457		)
Contributions from non-controlling partners	15,842			6,007
Distributions to non-controlling partners	(686		)	(28,015		)
Other financing activities	1,927			790
Net cash used in financing activities	(3,816		)	(52,725		)
Decrease in cash and cash equivalents	(61,947		)	(109,527		)
Cash and cash equivalents at beginning of period	229,121			321,990
Cash and cash equivalents at end of period	$	167,174		$	212,463

Supplementary Information
Cash paid during the period for:
Interest	$	6,911	$	7,940
Income taxes	2,293		2,338
Other non-cash activities:
Performance guarantees	$	21,332	$	24,202
Non-cash investing and financing activities:
Restricted stock units issued, net of forfeitures	$	6,862	$	13,942
Accrued cash dividends	5,090		5,054

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, 2013. 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 September 30, 2014 and 2013 and the results of our operations and cash flows for the periods presented. The December 31, 2013 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. Our operations are typically affected more 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 nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for the full year.

Certain revisions and reclassifications have been made to historical financial data in our condensed consolidated financial statements as follows:

• We have revised our condensed consolidated balance sheet as of September 30, 2013 and our condensed consolidated statements of operations and cash flows for the three and nine months ended September 30, 2013 to correct errors identified during the preparation of our 2013 Annual Report on Form 10-K. For the quarter ended September 30, 2013, the pre-tax adjustments were primarily related to (i) an over-accrual of pre-bid costs which affected selling, general and administrative expenses and accrued and other current liabilities in the amount of $1.4 million and (ii) a revision in equipment-related costs, which affected cost of revenue and property and equipment in the amount of $1.6 million. The Company assessed the materiality of the errors individually and in the aggregate on the prior interim periods’ financial statements in accordance with the SEC’s Staff Accounting Bulletin No. 99 and, based on an analysis of quantitative and qualitative factors, determined that the errors were not material to the Company’s condensed consolidated financial statements for the three and nine months ended September 30, 2013; therefore, these previously issued condensed consolidated financial statements can continue to be relied upon and an amendment of the previously filed Quarterly Report on Form 10-Q is not required. However, for comparability, the Company has revised its condensed consolidated balance sheet as of September 30, 2013 and its condensed consolidated statements of operations and cash flows for the three and nine months ended September 30, 2013 as presented herein to correct these errors.

• Historically, cash flows used in or provided by unconsolidated construction joint ventures were presented as one line item within operating cash flows. To improve transparency in the related balances sheet accounts, we have now presented separately the significant activity. In addition, we reclassified $24.2 million related to performance guarantees for the nine months ended September 30, 2013 out of equity in construction joint ventures and accrued expenses and other current liabilities, net to the non-cash supplemental table of the condensed consolidated statements of cash flows. These changes did not impact total cash used in or provided by operating, investing or financing activities.

6

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables set forth the impact of the correction of accounting errors and reclassification adjustments on the previously reported condensed consolidated balance sheet as of September 30, 2013 and the condensed consolidated statements of operations and cash flows for the three and nine months ended September 30, 2013 (in thousands):

Condensed Consolidated Balance Sheet

	September 30, 2013
		As Reported		Revisions			Revised
Total current assets		$	1,041,672	$	(368	)	$	1,041,304
Noncurrent assets		684,330		1,500			$	685,830
Total assets		$	1,726,002	$	1,132		$	1,727,134
Total current liabilities		$	565,522	$	439		$	565,961
Noncurrent liabilities		331,658		—			331,658
Total Granite Construction Incorporated shareholders’ equity		812,509		741			813,250
Non-controlling interests		16,313		(48		)	16,265
Total liabilities and equity		$	1,726,002	$	1,132		$	1,727,134

Condensed Consolidated Statements of Operations

	Three Months Ended September 30, 2013
	As Reported		Revisions			Revised
Total revenue	$	741,575	$	(1,823	)	$	739,752
Total cost of revenue	687,179		(3,287		)	683,892
Gross profit	54,396		1,464			55,860
Selling, general and administrative expenses	47,060		(1,533		)	45,527
Gain on sale of property and equipment	3,259		—			3,259
Operating income	10,595		2,997			13,592
Income before provision for income taxes	8,481		2,997			11,478
Provision for income taxes	4,026		920			4,946
Net income	4,455		2,077			6,532
Amount attributable to non-controlling interests	6,542		(37		)	6,505
Net income attributable to Granite Construction Incorporated	$	10,997	$	2,040		$	13,037
Net income per share attributable to common shareholders (see Note 12)
Basic	$	0.28	$	0.06		$	0.34
Diluted	$	0.28	$	0.05		$	0.33

7

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	Nine Months Ended September 30, 2013
		As Reported			Revisions			Revised
Total revenue		$	1,670,441		$	(1,638	)	$	1,668,803
Total cost of revenue		1,534,791			(1,501		)	1,533,290
Gross profit		135,650			(137		)	135,513
Selling, general and administrative expenses		150,675			(1,198		)	149,477
Operating loss		(7,372		)	1,061			(6,311		)
Loss before benefit from income taxes		(15,440		)	1,061			(14,379		)
Benefit from income taxes		(3,235		)	368			(2,867		)
Net loss		(12,205		)	693			(11,512		)
Amount attributable to non-controlling interests		3,938			48			3,986
Net loss attributable to Granite Construction Incorporated		$	(8,267	)	$	741		$	(7,526	)
Net loss per share attributable to common shareholders (see Note 12)
Basic		$	(0.21	)	$	0.02		$	(0.19	)
Diluted		$	(0.21	)	$	0.02		$	(0.19	)

Condensed Consolidated Statement of Cash Flows

	Nine months ended September 30, 2013
	As Reported			Revisions			Reclassifications			Revised
Net loss	$	(12,205	)	$	693		$	—		$	(11,512	)
Depreciation, depletion and amortization	54,788			—			—			54,788
Non-cash restructuring, net	(23		)	—			23			—
Gain on sales of property and equipment	(7,653		)	—			—			(7,653		)
Stock-based compensation	10,645			—			—			10,645
Equity in net income from unconsolidated joint ventures	—			—			(51,826		)	(51,826		)
Receivables	(99,856		)	—			—			(99,856		)
Costs and estimated earnings in excess of billings, net	(1,707		)	137			(14,494		)	(16,064		)
Inventories	(1,882		)	—			—			(1,882		)
Equity in construction joint ventures	(54,672		)	—			54,672			—
Contributions to unconsolidated construction joint ventures	—			—			(28,514		)	(28,514		)
Distributions from unconsolidated construction joint ventures	—			—			68,033			68,033
Other assets, net	(5,165		)	368			(23		)	(4,820		)
Accounts payable	5,578			(1,198		)	(1,176		)	3,204
Accrued expenses and other current liabilities, net	47,637			—			(26,695		)	20,942
Net cash used in operating activities	$	(64,515	)	$	—		$	—		$	(64,515	)

8

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2. Recently Issued Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the threshold for reporting discontinued operations and adds new disclosures. The new guidance defines a discontinued operation as a disposal of a component or group of components that is disposed of or is classified as held for sale and “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” For disposals of individually significant components that do not qualify as discontinued operations, an entity must disclose pre-tax earnings of the disposed component. This ASU will be effective for all disposals (or classifications as held for sale) of components of an entity that occur during our year ended December 31, 2015 and interim periods within the year. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. This ASU’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. The ASU will be effective commencing with our quarter ending March 31, 2017. We are currently assessing the potential impact of this ASU on our consolidated financial statements.

3. Revisions in Estimates

Our profit recognition related to construction contracts is based on estimates of costs to complete each project. These estimates can vary significantly in the normal course of business as projects progress, circumstances develop and evolve, and uncertainties are resolved. We recognize revenue on affirmative claims when we have a signed agreement and recognize revenue associated with unapproved change orders to the extent the related costs have been incurred, the amount can be reliably estimated and recovery is probable. We recognize costs associated with affirmative claims and unapproved change orders as incurred and revisions to estimated total costs as soon as the obligation to perform is determined. Approved change orders and affirmative 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. There can be no assurance that we will not experience further changes in circumstances or otherwise be required to further revise our profitability estimates.

For the majority of our contracts, revenue in an amount equal to cost incurred is recognized until there is sufficient information to determine the estimated profit on the project with a reasonable level of certainty. The gross profit impact from projects that reached initial profit recognition is not included in the tables below. During the three and nine months ended September 30, 2014, the gross profit impact from projects that reached initial profit recognition was $21.4 million and $50.0 million, respectively. During the three and nine months ended September 30, 2013, the gross profit impact from projects that reached initial profit recognition was $13.5 million and $28.8 million, respectively.

9

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 $1.0 million and $9.4 million for the three and nine months ended September 30, 2014, respectively. The net changes for the three and nine months ended September 30, 2013 were net increases of $1.5 million and $0.6 million, respectively. The projects are summarized as follows:

Increases

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in millions)			2014		2013		2014		2013
Number of projects with upward estimate changes			—		4		2		5
Range of increase in gross profit from each project, net		$	—	$	1.3 - 2.7	$	1.1 - 1.2	$	1.1 - 3.0
Increase on project profitability		$	—	$	7.4	$	2.2	$	11.8

The increases during the three months ended September 30, 2013 and during the nine months ended September 30, 2014 and 2013 were due to owner-directed scope changes and lower costs than originally anticipated.

Decreases

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in millions)			2014		2013		2014		2013
Number of projects with downward estimate changes			1		3		5		4
Reduction in gross profit from each project, net		$	1.0	$	1.5 - 2.5	$	1.7 - 2.9	$	1.1 - 4.3
Decrease on project profitability		$	1.0	$	5.9	$	11.6	$	11.2

The decreases during the three and nine months ended September 30, 2014 and 2013 were due to higher costs than originally anticipated and outstanding claims and change orders.

10

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 a net decrease of $8.5 million and a net increase of $25.9 million for the three and nine months ended September 30, 2014, respectively. The net changes for the three and nine months ended September 30, 2013 were a net decrease of $6.8 million and a net increase of $13.6 million, respectively. Amounts attributable to non-controlling interests were $1.8 million of the net decrease and $5.8 million of the net increase for the three and nine months ended September 30, 2014, respectively. Amounts attributable to non-controlling interests were $5.9 million of the net decrease for the three months ended September 30, 2013 and $4.3 million of the net increase for the nine months ended September 30, 2013. The projects are summarized as follows:

Increases

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in millions)			2014		2013		2014		2013
Number of projects with upward estimate changes			2		3		9		6
Range of increase in gross profit from each project, net		$	1.3 - 3.8	$	1.0 - 10.5	$	1.1 - 11.8	$	2.1 - 26.6
Increase on project profitability		$	5.1	$	12.9	$	43.0	$	47.5

The increases during the three and nine months ended September 30, 2014 were due to higher productivity than originally anticipated, owner-directed scope changes and settlement of outstanding claims with contract owners. The increases during the three and nine months ended September 30, 2013 were due to production at a higher rate than anticipated and owner-directed scope changes.

Decreases

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in millions)			2014		2013		2014		2013
Number of projects with downward estimate changes			3		4		3		4
Range of reduction in gross profit from each project, net		$	2.0 - 7.0	$	1.4 - 14.7	$	1.3 - 13.9	$	1.6 - 23.5
Decrease on project profitability		$	13.6	$	19.7	$	17.1	$	33.9

The decreases during the three and nine months ended September 30, 2014 and 2013 were due to additional costs, lower productivity than originally anticipated and outstanding claims and change orders.

11

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

4. 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)	September 30, 2014		December 31, 2013		September 30, 2013
U.S. Government and agency obligations	$	12,967	$	10,000	$	1,260
Commercial paper	14,983		39,968		19,982
Municipal bonds	—		—		1,650
Total short-term marketable securities	27,950		49,968		22,892
U.S. Government and agency obligations	74,140		67,234		64,014
Total long-term marketable securities	74,140		67,234		64,014
Total marketable securities	$	102,090	$	117,202	$	86,906

Scheduled maturities of held-to-maturity investments were as follows:

(in thousands)	September 30, 2014
Due within one year	$	27,950
Due in one to five years	74,140
Total	$	102,090

12

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

5. 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 significant assets and liabilities measured at fair value in the condensed consolidated balance sheets on a recurring basis for each of the fair value levels (in thousands):

	Fair Value Measurement at Reporting Date Using
September 30, 2014	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	50,148	$	—	$	—	$	50,148
Total assets	$	50,148	$	—	$	—	$	50,148

	Fair Value Measurement at Reporting Date Using
December 31, 2013	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	89,336	$	—	$	—	$	89,336
Total assets	$	89,336	$	—	$	—	$	89,336

	Fair Value Measurement at Reporting Date Using
September 30, 2013	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	113,220	$	—	$	—	$	113,220
Total assets	$	113,220	$	—	$	—	$	113,220

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

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Cash equivalents	$	50,148	$	89,336	$	113,220
Cash	117,026		139,785		99,243
Total cash and cash equivalents	$	167,174	$	229,121	$	212,463

13

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 recorded at fair value in the condensed consolidated balance sheets are as follows: 

		September 30, 2014				December 31, 2013				September 30, 2013
(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	$	102,090	$	101,711	$	117,202	$	116,915	$	86,906	$	86,594
Liabilities (including current maturities):
Senior notes payable2	Level 3	$	200,000	$	225,186	$	200,000	$	225,865	$	200,000	$	226,110
Credit Agreement loan2	Level 3	70,000		70,258		70,000		69,601		70,000		70,166

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

²The fair values of the senior notes payable and Credit Agreement (defined in Note 11) 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 nine months ended September 30, 2014 and 2013, we did not record any fair value adjustments related to nonfinancial assets and liabilities measured at fair value on a nonrecurring basis.

In March 2014, we entered into an interest rate swap with a notional amount of $100.0 million which matures in June 2018 to convert the interest rate of our 2019 Notes (defined in Note 11) from a fixed rate of 6.11% to a floating rate of 4.15% plus six-month LIBOR. The interest rate swap is reported at fair value using Level 2 inputs, and gains or losses are recorded in other income (expense), net in our condensed consolidated statement of operations and were losses of $0.6 million and gains of $0.3 million during the three and nine months ended September 30, 2014, respectively.

In March 2014, we entered into two diesel commodity swaps covering May to October, 2014 and 2015 which represented roughly 25% of our forecasted purchase for diesel.  In May 2014, we entered into two natural gas commodity swaps covering June to October 2014 and May to October 2015 representing roughly 25% of our forecasted purchase of natural gas.  The commodity swaps are reported at fair value using Level 2 inputs, and gains or losses are recorded in other income (expense), net in our condensed consolidated statement of operations and were losses of $0.6 million and $0.7 million during the three and nine months ended September 30, 2014, respectively.

14

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

6. Receivables, net

Receivables, net at September 30, 2014, December 31, 2013 and September 30, 2013 are as follows:

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Construction and Large Project Construction contracts:
Completed and in progress	$	274,203	$	193,538	$	275,182
Retentions	79,475		73,103		76,114
Total construction contracts	353,678		266,641		351,296
Construction Material sales	54,718		36,813		55,466
Other	9,740		12,657		18,412
Total gross receivables	418,136		316,111		425,174
Less: allowance for doubtful accounts	508		2,513		2,565
Total net receivables	$	417,628	$	313,598	$	422,609

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, based on the passage of time, achievement of milestones or upon completion of the project and, to the extent not collected, are included in receivables. 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. Included in other receivables at September 30, 2014, December 31, 2013 and September 30, 2013 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.

Financed receivables consisted of long-term notes receivable and retentions receivable. Long-term notes receivable were not material at any of the presented dates. No retention receivable individually exceeded 10% of total net receivables at any of the presented dates. As of September 30, 2014, the majority of the retentions receivable is expected to be collected within one year.

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

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Escrow	$	26,128	$	25,124	$	23,794
Non-escrow	53,347		47,979		52,320
Total retention receivables	$	79,475	$	73,103	$	76,114

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.

As of September 30, 2014, the non-escrow retention receivables aged over 90 days have not materially changed since December 31, 2013. In addition, our allowance for doubtful accounts contained no material provision related to non-escrow retention receivables as we determined there were no significant collectability issues at any of the presented dates.

15

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

7. Construction and Line Item Joint Ventures

We participate in various construction joint ventures, partnerships and a limited liability company of which we are a limited member (“joint ventures”). We also participate in various “line item” joint venture agreements under which each member is responsible for performing certain discrete items of the total scope of contracted work.

Due to the joint and several nature of the performance obligations under the related owner contracts, if one of the members fails to perform, we and the remaining members would be responsible for performance of the outstanding work. At September 30, 2014, there was approximately $6.1 billion of construction revenue to be recognized on unconsolidated and line item construction joint venture contracts of which $1.8 billion represented our share and the remaining $4.3 billion represented our members’ 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 venture partners. The associated 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 venture. 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.

We continually evaluate whether there are changes in the status of the VIEs or changes to the primary beneficiary designation of the VIE. Based on our assessments during the nine months ended September 30, 2014, we determined no change was required for existing construction joint ventures.

16

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 consolidated construction joint ventures are included in our condensed consolidated balance sheets as follows:

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Cash and cash equivalents1	$	29,518	$	38,800	$	57,133
Receivables, net	45,483		38,372		47,696
Costs and estimated earnings in excess of billings1	21,105		178		81
Other current assets	1,910		4,600		3,734
Total current assets	98,016		81,950		108,644
Property and equipment, net	16,172		22,216		28,194
Total assets2	$	114,188	$	104,166	$	136,838
Accounts payable	$	22,951	$	16,937	$	20,075
Billings in excess of costs and estimated earnings1	23,138		60,185		70,518
Accrued expenses and other current liabilities	3,110		11,299		12,816
Total liabilities2	$	49,199	$	88,421	$	103,409

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 consolidated 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 a majority of the members and, accordingly, these cash and cash equivalents and assets generally are not available for the working capital needs of Granite until distributed.

At September 30, 2014, we were engaged in three active consolidated construction joint venture projects with total contract values ranging from $32.4 million to $364.3 million. Our share of revenue remaining to be recognized on these consolidated joint ventures ranged from $0.1 million to $43.9 million. Our proportionate share of the equity in these joint ventures was between 55.0% and 65.0%. During the three and nine months ended September 30, 2014, total revenue from consolidated construction joint ventures was $23.8 million and $122.0 million, respectively. During the three and nine months ended September 30, 2013, total revenue from consolidated construction joint ventures was $42.4 million and $131.1 million, respectively. Total cash used in consolidated construction joint venture operations was $44.7 million and $10.4 million during the nine months ended September 30, 2014 and 2013, 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 September 30, 2014, these unconsolidated joint ventures were engaged in eleven active unconsolidated construction joint ventures with total contract values ranging from $72.8 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 September 30, 2014, our share of the revenue remaining to be recognized on these unconsolidated joint ventures ranged from $0.3 million to $696.9 million.

As of September 30, 2014, 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, and the average rate in effect during the reporting period for the results of operations. The associated foreign currency translation adjustments did not have a material impact on the condensed consolidated financial statements for any of the dates or periods presented.

17

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Assets:
Cash and cash equivalents1	$	286,040	$	385,094	$	412,506
Other assets	538,012		523,827		439,655
Less partners’ interest	530,585		612,530		557,857
Granite’s interest	293,467		296,391		294,304
Liabilities:
Accounts payable	141,630		155,985		127,695
Billings in excess of costs and estimated earnings1	178,781		245,341		274,052
Other liabilities	61,061		104,152		68,379
Less partners’ interest	269,264		371,760		336,885
Granite’s interest	112,208		133,718		133,241
Equity in construction joint ventures	$	181,259	$	162,673	$	161,063

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.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2014		2013		2014		2013
Revenue:
Total	$	313,945	$	363,523	$	1,055,276	$	848,082
Less partners’ interest and adjustments1	213,068		259,655		741,451		586,016
Granite’s interest	100,877		103,868		313,825		262,066
Cost of revenue:
Total	338,848		290,112		982,014		661,587
Less partners’ interest and adjustments1	239,661		203,804		696,633		452,784
Granite’s interest	99,187		86,308		285,381		208,803
Granite’s interest in gross profit	$	1,690	$	17,560	$	28,444	$	53,263

¹Partners’ 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.

During the three and nine months ended September 30, 2014, unconsolidated construction joint venture net loss (net of adjustments) was $25.2 million and net income (net of adjustments) was $75.2 million, respectively, of which our share was net income (net of adjustments) of $1.8 million and $28.1 million, respectively. During the three and nine months ended September 30, 2013, the net income (net of adjustments) of unconsolidated construction joint ventures was $71.1 million and $182.8 million, respectively, of which our share was $21.3 million and $53.2 million, respectively.

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 September 30, 2014, we had four active line item joint venture construction projects with total contract values ranging from $42.6 million to $86.1 million of which our portion ranged from $28.7 million to $63.8 million. As of September 30, 2014, our share of revenue remaining to be recognized on these line item joint ventures ranged from less than $0.1 million to $27.6 million.

18

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

8. 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. 

We have determined that certain of these entities are consolidated because they are VIEs and we are the primary beneficiary. We continually evaluate whether there are changes in the status of the VIEs or changes to the primary beneficiary designation of the VIE. Based on our assessments during the nine months ended September 30, 2014 and 2013, we determined no change was required for existing real estate entities.

Our real estate entities 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. The amount of GLC’s exposure is limited to GLC’s equity investment in the real estate joint venture. However, if one of GLC’s partners is unable to fulfill its management role or make its required financial contribution, GLC may assume, at its option, full management and/or financial responsibility for the project.

All of the assets of these real estate entities in which we are a participant 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).

To determine if impairment charges should be recognized, the carrying amount of each 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 nine months ended September 30, 2014 and 2013.

During 2013, we concluded the majority of our 2010 Enterprise Improvement Plan (“EIP”) which included the impairment and planned orderly divestiture of our real estate investment business consistent with our strategy to focus on our core business. Consequently, during 2013 we recorded impairment charges on certain real estate assets in accordance with our EIP. When real estate assets which we continue to have a financial interest are sold, we may recognize additional restructuring charges or gains; however, we do not expect these charges or gains to be material to our consolidated financial statements. No restructuring charges were recorded during the three and nine months ended September 30, 2014 and an immaterial restructuring gain was recorded during the three and nine months ended September 30, 2013.

19

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Consolidated Real Estate Entities

As of September 30, 2014, December 31, 2013 and September 30, 2013, real estate held for development and sale associated with consolidated real estate entities included in our condensed consolidated balance sheets was $11.8 million, $12.5 million and $50.3 million, respectively. Non-recourse debt, including current maturities, associated with these entities was $7.0 million, $8.0 million and $9.2 million as of September 30, 2014, December 31, 2013 and September 30, 2013, respectively. All other amounts associated with these entities were insignificant as of the dates presented. Residential real estate held for development and sale in Washington State was $11.6 million as of both September 30, 2014 and December 31, 2013, and was $40.8 million as of September 30, 2013. The remaining balances were in various commercial projects in California and Texas. During 2014, we sold or otherwise disposed of three consolidated real estate entities in connection with our 2010 Enterprise Improvement Plan. The associated gain was not material.

Investments in Affiliates

We have determined that certain real estate entities 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 are 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.

Our investments in affiliates balance consists of the following:

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Equity method investments in real estate affiliates	$	24,040	$	21,392	$	20,488
Equity method investments in other affiliates	10,137		11,088		10,850
Total investments in affiliates	$	34,177	$	32,480	$	31,338

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

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Total assets	$	172,220	$	173,988	$	166,601
Net assets	103,651		99,444		95,490
Granite’s share of net assets	34,177		32,480		31,338

The equity method investments in real estate included $17.8 million, $14.9 million and $14.0 million in residential real estate in Texas as of September 30, 2014, December 31, 2013 and September 30, 2013, respectively. The remaining balances were in commercial real estate in Texas. Of the $172.2 million in total assets as of September 30, 2014, real estate entities had total assets ranging from $1.9 million to $57.0 million and non-real estate entities had total assets ranging from $0.3 million to $22.5 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.

20

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

9. 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)	September 30, 2014		December 31, 2013		September 30, 2013 As Revised
Equipment and vehicles	$	771,934	$	765,971	$	756,098
Quarry property	169,982		170,442		180,205
Land and land improvements	118,985		119,917		125,606
Buildings and leasehold improvements	83,813		83,494		83,743
Office furniture and equipment	70,837		70,156		69,265
Property and equipment	1,215,551		1,209,980		1,214,917
Less: accumulated depreciation and depletion	791,279		773,121		756,893
Property and equipment, net	$	424,272	$	436,859	$	458,024

10. 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 September 30, 2014, December 31, 2013 and September 30, 2013.

The following table presents the goodwill balance by reporting segment (in thousands):

	September 30, 2014		December 31, 2013		September 30, 2013
Construction	$	29,260	$	29,260	$	28,398
Large Project Construction	22,593		22,593		23,287
Construction Materials	1,946		1,946		2,114
Total goodwill	$	53,799	$	53,799	$	53,799

21

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Amortized Intangible Assets

The detail of our amortized intangible assets that are included in other noncurrent assets on our condensed consolidated balance sheets is as follows (in thousands):

			Accumulated
September 30, 2014	Gross Value		Amortization			Net Book Value
Permits	$	29,713	$	(12,835	)	$	16,878
Acquired backlog	7,900		(7,226		)	674
Customer lists	4,398		(2,711		)	1,687
Trade name	4,100		(755		)	3,345
Covenants not to compete and other	2,459		(2,426		)	33
Total amortized intangible assets	$	48,570	$	(25,953	)	$	22,617

			Accumulated
December 31, 2013	Gross Value		Amortization			Net Book Value
Permits	$	29,713	$	(11,992	)	$	17,721
Acquired backlog	7,900		(6,835		)	1,065
Customer lists	4,398		(2,491		)	1,907
Trade name	4,100		(432		)	3,668
Covenants not to compete and other	2,459		(2,408		)	51
Total amortized intangible assets	$	48,570	$	(24,158	)	$	24,412

			Accumulated
September 30, 2013	Gross Value		Amortization			Net Book Value
Permits	$	29,713	$	(11,711	)	$	18,002
Acquired backlog	7,900		(5,147		)	2,753
Customer lists	4,398		(2,418		)	1,980
Trade name	4,100		(324		)	3,776
Covenants not to compete and other	2,459		(2,378		)	81
Total amortized intangible assets	$	48,570	$	(21,978	)	$	26,592

Amortization expense related to amortized intangible assets for the three and nine months ended September 30, 2014 was $0.6 million and $1.8 million respectively. Amortization expense related to amortized intangible assets for the three and nine months ended September 30, 2013 was $2.2 million and $6.7 million, respectively. Based on the amortized assets balance at September 30, 2014, amortization expense expected to be recorded in the future is as follows: $0.9 million for the remainder of 2014; $2.1 million in 2015; $1.8 million in 2016; $1.7 million in 2017; $1.7 million in 2018; and $14.4 million thereafter.

22

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 September 30, 2014, we were in compliance with the covenants contained in our note purchase agreement governing our senior notes payable (“2019 NPA”) and the credit agreement governing the $215.0 million committed revolving credit facility, with a sublimit for letters of credit of $100.0 million (“Credit Agreement”), as well as the 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 and Earnings Per Share

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 (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2014	2013	2014	2013
Weighted average shares outstanding:
Weighted average common stock outstanding	39,150	38,876	39,073	38,773
Total basic weighted average shares outstanding	39,150	38,876	39,073	38,773
Diluted weighted average shares outstanding:
Weighted average common stock outstanding, basic	39,150	38,876	39,073	38,773
Effect of dilutive securities:
Common stock options and restricted stock units1	663	883	717	—
Total weighted average shares outstanding assuming dilution	39,813	39,759	39,790	38,773

¹Due to the net loss for the nine months ended September 30, 2013, restricted stock units and common stock options representing approximately 863,000 shares have been excluded from the number of shares used in calculating diluted net loss per share, as their inclusion would be antidilutive.

23

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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. During the three and nine months ended September 30, 2014 and 2013, there were no participating securities; therefore, net income was not allocated to participating securities. Following is a calculation of basic and diluted EPS (in thousands, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013 As Revised		2014		2013 As Revised
Basic
Numerator:
Net income (loss) allocated to common shareholders for basic calculation	$	15,282	$	13,037	$	8,370	$	(7,526	)
Denominator:
Weighted average common shares outstanding, basic	39,150		38,876		39,073		38,773
Net income (loss) per share, basic	$	0.39	$	0.34	$	0.21	$	(0.19	)
Diluted
Numerator:
Net income (loss) allocated to common shareholders for diluted calculation	$	15,282	$	13,037	$	8,370	$	(7,526	)
Denominator:
Weighted average common shares outstanding, diluted	39,813		39,759		39,790		38,773
Net income (loss) per share, diluted	$	0.38	$	0.33	$	0.21	$	(0.19	)

24

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

13. Equity

The following tables summarize our equity activity for the periods presented (in thousands):

	Granite Construction Incorporated			Non-controlling Interests		Total Equity
Balance at December 31, 2013	$	781,940		$	4,404	$	786,344
Purchase of common stock1	(4,751		)	—		(4,751		)
Other transactions with shareholders and employees3	10,505			—		10,505
Transactions with non-controlling interests, net	—			15,174		15,174
Net income	8,370			6,681		15,051
Dividends on common stock	(15,260		)	—		(15,260		)
Balance at September 30, 2014	$	780,804		$	26,259	$	807,063

Balance at December 31, 2012	$	829,953		$	41,905		$	871,858
Purchase of common stock2	(5,457		)	—			(5,457		)
Other transactions with shareholders and employees3	11,430			—			11,430
Transactions with non-controlling interests, net	—			(21,654		)	(21,654		)
Net loss	(7,526		)	(3,986		)	(11,512		)
Dividends on common stock	(15,150		)	—			(15,150		)
Balance at September 30, 2013 As Revised	$	813,250		$	16,265		$	829,515

¹Represents 123,000 shares purchased in connection with employee tax withholding for shares/units vested under our Amended and Restated 1999 Equity Incentive Plan.

²Represents 181,000 shares purchased in connection with employee tax withholding for shares/units vested under our Amended and Restated 1999 Equity Incentive Plan.

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

25

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

14. Legal Proceedings

In the ordinary course of business, we and our affiliates are involved in various legal proceedings alleging, among other things, public liability issues or breach of contract or tortious conduct in connection with the performance of services and/or materials provided, the various outcomes of which cannot be predicted with certainty. We and our affiliates are also subject to government inquiries in the ordinary course of business seeking information concerning our compliance with government construction contracting requirements and various laws and regulations, the outcomes of which cannot be predicted with certainty.

Some of the matters in which we or our joint ventures and affiliates are involved may involve compensatory, punitive, or other claims or sanctions that, if granted, could require us to pay damages or make other expenditures in amounts that are not probable to be incurred or cannot currently be reasonably estimated. In addition, in some circumstances our government contracts could be terminated, we could be suspended, debarred or incur other administrative penalties or sanctions, or payment of our costs could be disallowed. While any of our pending legal proceedings may be 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.

Accordingly, it is possible that future developments in such proceedings and inquiries could require us to (i) adjust existing accruals, or (ii) record new accruals that we did not originally believe to be probable or that could not be reasonably estimated. Such changes could be material to our financial condition, results of operations and/or cash flows in any particular reporting period. In addition to matters that are considered probable for which the loss can be reasonably estimated, we also disclose certain matters where the loss is considered reasonably possible and is reasonably estimable.

Liabilities relating to legal proceedings and government inquiries, to the extent that we have concluded such liabilities are probable and the amounts of such liabilities are reasonably estimable, are recorded in our condensed consolidated balance sheets. The aggregate liabilities recorded as of September 30, 2014, December 31, 2013 and September 30, 2013 related to these matters were approximately $9.9 million, $16.3 million and $18.0 million, respectively, and were primarily included in accrued expenses and other current liabilities. The aggregate range of possible loss related to matters considered reasonably possible was zero to approximately $5.0 million as of September 30, 2014. Our view as to such matters could change in future periods.

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 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, that began in 2004 and was substantially complete in 2008. The subpoena also 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 subcontractor/consultant. Granite Northeast produced the requested documents, together with other requested information. Subsequently, Granite Northeast was informed by the Department of Justice (“DOJ”) that it is a subject of an investigation, along with others, and that the DOJ believes that Granite Northeast’s claim of DBE credit for the Subcontractor was improper. In addition to the documents produced in response to the Grand Jury subpoena, Granite Northeast has provided requested information to the DOJ, along with other federal and state agencies (collectively the “Agencies”), concerning other DBE entities for which Granite Northeast has historically claimed DBE credit. The Agencies have informed Granite Northeast that they believe that the claimed DBE credit taken for some of those other DBE entities was improper. Granite Northeast has met several times since January 2013 with the DOJ and the Agencies’ representatives to discuss the government’s criminal investigation of the Grand Avenue Project participants, including Granite Northeast, and to discuss their respective positions on, and potential resolution of, the issues raised in the investigation. In connection with this investigation, Granite Northeast is subject to potential civil, criminal, and/or administrative penalties or sanctions, as well as additional future DBE compliance activities and the costs associated therewith. Granite believes that the incurrence of some form of penalty or sanction is probable, and has therefore recorded what it believes to be the most likely amount of liability it may incur in its condensed consolidated balance sheet as of September 30, 2014. Granite believes that it is reasonably possible that it may incur liability in relation to this matter that is in excess of such accrual. 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.

26

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

15. 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, underground, power related facilities, utilities 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 a longer duration than our Construction segment work. These projects include major highways, mass transit facilities, bridges, tunnels, waterway locks and dams, pipelines, canals, power related facilities, utilities and airport infrastructure. This segment primarily includes bid-build, design-build, construction management/general contractor contracts, and various contract methods relating to public, private partnerships, 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 and California.

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies contained in our 2013 Annual Report on Form 10-K. We evaluate segment performance based on gross profit or loss, and do not include selling, general and administrative expenses nor 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.

27

GRANITE CONSTRUCTION INCORPORATED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Summarized segment information for the three and nine months ended September 30, 2014 and 2013 is as follows (in thousands):

	Three Months Ended September 30,
	Construction		Large Project Construction			Construction Materials			Real Estate		Total
2014
Total revenue from reportable segments	$	447,097	$	179,446		$	146,782		$	7	$	773,332
Elimination of intersegment revenue	—		—			(53,568		)	—		(53,568		)
Revenue from external customers	447,097		179,446			93,214			7		719,764
Gross profit	48,802		5,679			12,204			7		66,692
Depreciation, depletion and amortization	4,621		4,777			5,408			—		14,806
2013 As Revised
Total revenue from reportable segments	$	470,567	$	185,997		$	146,286		$	16	$	802,866
Elimination of intersegment revenue	—		—			(63,114		)	—		(63,114		)
Revenue from external customers	470,567		185,997			83,172			16		739,752
Gross profit (loss)	50,719		(2,163		)	7,288			16		55,860
Depreciation, depletion and amortization	8,502		3,634			5,631			—		17,767

	Nine Months Ended September 30,
	Construction		Large Project Construction		Construction Materials			Real Estate		Total
2014
Total revenue from reportable segments	$	873,357	$	611,110	$	286,669		$	29	$	1,771,165
Elimination of intersegment revenue	—		—		(85,684		)	—		(85,684		)
Revenue from external customers	873,357		611,110		200,985			29		1,685,481
Gross profit	82,773		72,264		15,449			29		170,515
Depreciation, depletion and amortization	12,865		12,001		16,267			—		41,133
Segment assets	150,070		247,694		310,731			11,773		720,268
2013 As Revised
Total revenue from reportable segments	$	956,287	$	539,268	$	282,547		$	141	$	1,778,243
Elimination of intersegment revenue	—		—		(109,440		)	—		(109,440		)
Revenue from external customers	956,287		539,268		173,107			141		1,668,803
Gross profit	87,989		42,129		5,268			127		135,513
Depreciation, depletion and amortization	20,194		8,792		17,087			—		46,073
Segment assets	155,440		212,644		340,172			50,250		758,506

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

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2014			2013 As Revised			2014			2013 As Revised
Total gross profit from reportable segments	$	66,692		$	55,860		$	170,515		$	135,513
Selling, general and administrative expenses	47,386			45,527			147,731			149,477
Gain on sales of property and equipment	3,004			3,259			6,891			7,653
Other expense	(2,124		)	(2,114		)	(6,323		)	(8,068		)
Income (loss) before provision for (benefit from) income taxes	$	20,186		$	11,478		$	23,352		$	(14,379	)

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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 reflect 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 undue 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.

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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, power related facilities, 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 have been divesting of over the past three years as part of our 2010 Enterprise Improvement Plan (“EIP”). Our permanent offices are located in Alaska, Arizona, California, Colorado, Florida, Illinois, Nevada, New York, Texas, Utah and Washington. We have four reportable business segments: Construction, Large Project Construction, Construction Materials and Real Estate (see Note 15 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 there is sufficient information to determine the estimated profit on the project with a reasonable level of certainty (see “Gross Profit” discussion 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, outstanding contract change orders and claims 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.

30

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 federal, state and local governments take actions to balance their budgets. Additionally, high fuel prices and more fuel efficient vehicles 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.

In addition to business segments, we review our business by operating groups and by public and private market sectors. Our operating groups are defined as follows: (1) California; (2) Northwest, which primarily includes offices in Alaska, Arizona, Nevada, Utah and Washington; (3) Heavy Civil, which primarily includes offices in California, Florida, New York and Texas; and (4) Kenny, which primarily includes offices in Colorado and Illinois. Each of these operating groups may include financial results from our Construction and Large Project Construction segments. A project’s results are reported in the operating group that is responsible for the project, not necessarily the geographic area where the work is located. In some cases, the operations of an operating group include the results of work performed outside of that geographic region. Our California and Northwest operating groups include financial results from our Construction Materials segment.

Effective in the third quarter of 2013, we made certain changes to the organizational structure of the four operating groups. The most significant changes were to move our Arizona business from the Heavy Civil operating group to the Northwest operating group, and to reclassify the majority of the complex heavy-civil construction contracts to the Heavy Civil operating group. These changes were designed to improve operating efficiencies and better position the Company for long-term growth. Prior period amounts associated with these changes have been reclassified to conform to the current year presentation. These changes had no impact on our reportable business segments.

31

Current Economic Environment and Outlook

Public funding at the federal level was recently stabilized with a patchwork federal highway bill continuing resolution which covers spending obligations into May 2015.  This funding stabilized current projects and select federal highway/public transportation programs in the procurement phase. However, given the lack of long-term visibility, state and local government letting programs may prioritize maintenance projects over the letting of major capital projects. In some Western markets, state and local agencies have delayed projects, pushing bidding opportunities out from one to three quarters. Projects are moving forward, but at a slower pace than anticipated earlier this year. Notably, this has not yet had an impact on the market for Large Projects, especially those that involve alternative procurement methods.

Executing on record backlog of $3.0 billion, our business is expected to deliver improved financial performance in 2014. The Construction business should perform aligned with the varied economic and public funding environments in the Western states and local communities we serve. Our Large Project Construction segment is expected to drive improved profitability late in 2014. Revenue growth from the Construction Materials segment continues to out-pace prior expectations, and continued margin improvement is expected compared to last year.

Private sector market improvement continues to be largely offset by varied funding and financing environments and a continued highly competitive bidding environment. We continue to expect to grow our portfolio of new work across all segments in the next twelve months. Opportunities for profitable growth are expected to be driven by continued significant near and long-term bidding activity.

Strong attention is needed from Congress to provide short-term funding for the Highway Trust Fund, as well as the long-term stability of a new highway bill. Funding and financing stability ultimately remains critical to driving progress on important infrastructure investment at the federal, state and local levels. Without resolution of these issues, the near and long-term recovery and growth expectations of the construction industry are at risk. 

Results of Operations

Our business is seasonal and can be affected by weather conditions in certain geographies. In addition, annual maintenance on our equipment and plants is typically performed during the first quarter, causing down time in operations. These factors can create variability in revenue and profit. Therefore, the results of operations for the three and nine months of a given year are not necessarily indicative of the results to be expected for the full year.

The following table presents a financial summary on a comparative basis for the three and nine months ended September 30, 2014 and 2013. Financial data included herein for the three and nine months ended September 30, 2013 reflect the correction of accounting errors and reclassification adjustments to the condensed consolidated financial statements for the three and nine months ended September 30, 2013 as described in Note 1 of “Notes to Condensed Consolidated Financial Statements.”

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2014			2013 As Revised			2014			2013 As Revised
Total revenue	$	719,764		$	739,752		$	1,685,481		$	1,668,803
Gross profit	66,692			55,860			170,515			135,513
Operating income (loss)	22,310			13,592			29,675			(6,311		)
Total other expense	(2,124		)	(2,114		)	(6,323		)	(8,068		)
Amount attributable to non-controlling interests	1,177			6,505			(6,681		)	3,986
Net income (loss) attributable to Granite Construction Inc.	$	15,282		$	13,037		$	8,370		$	(7,526	)

32

Revenue

Total revenue by segment for the three and nine months ended September 30, 2014 and 2013 is as follows:

Total Revenue by Segment	Three Months Ended September 30,								Nine Months Ended September 30,
(dollars in thousands)	2014				2013 As Revised				2014				2013 As Revised
Construction	$	447,097	62.1	%	$	470,567	63.6	%	$	873,357	51.8	%	$	956,287	57.3	%
Large Project Construction	179,446		24.9		185,997		25.2		611,110		36.3		539,268		32.3
Construction Materials	93,214		13.0		83,172		11.2		200,985		11.9		173,107		10.4
Real Estate	7		—		16		—		29		—		141		—
Total	$	719,764	100.0	%	$	739,752	100.0	%	$	1,685,481	100.0	%	$	1,668,803	100.0	%

Construction Revenue	Three Months Ended September 30,								Nine Months Ended September 30,
(dollars in thousands)	2014				2013 As Revised				2014				2013 As Revised
California:
Public sector	$	134,365	30.1	%	$	126,334	26.9	%	$	293,640	33.5	%	$	282,693	29.5	%
Private sector	27,649		6.2		28,421		6.0		63,345		7.3		62,262		6.5
Northwest:
Public sector	194,187		43.4		209,445		44.5		308,307		35.3		353,962		37.0
Private sector	39,794		8.9		51,868		11.0		82,693		9.5		97,528		10.2
Heavy Civil:
Public sector	8,652		1.9		1,525		0.3		14,507		1.7		3,481		0.4
Private sector	—		—		—		—		—		—		528		0.1
Kenny:
Public sector	30,020		6.7		18,836		4.0		75,942		8.7		48,536		5.1
Private sector	12,430		2.8		34,138		7.3		34,923		4.0		107,297		11.2
Total	$	447,097	100.0	%	$	470,567	100.0	%	$	873,357	100.0	%	$	956,287	100.0	%

Construction revenue for the three and nine months ended September 30, 2014 decreased by $23.5 million, or 5.0%, and $82.9 million, or 8.7%, respectively, compared to the same periods in 2013. The decreases were primarily due to lower volumes from entering the year with less backlog and timing of new awards in the Kenny private sector and in both sectors of the Northwest. The decreases were partially offset by increases in the Heavy Civil and California groups due to entering the year with higher backlog from bid successes during 2013.

33

Large Project Construction Revenue	Three Months Ended September 30,								Nine Months Ended September 30,
(dollars in thousands)	2014				2013 As Revised				2014				2013 As Revised
California1	$	15,142	8.4	%	$	14,720	7.9	%	$	49,950	8.1	%	$	54,730	10.2	%
Northwest1	1,219		0.7		3,198		1.7		9,676		1.6		21,184		3.9
Heavy Civil1	133,783		74.6		157,757		84.8		467,954		76.6		425,312		78.9
Kenny
Public sector	24,742		13.8		9,633		5.2		66,531		10.9		$	37,405	6.9
Private sector	4,560		2.5		689		0.4		16,999		2.8		$	637	0.1
Total	$	179,446	100.0	%	$	185,997	100.0	%	$	611,110	100.0	%	$	539,268	100.0	%

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

Large Project Construction revenue for the three and nine months ended September 30, 2014 decreased by $6.6 million, or 3.5%, and increased by $71.8 million, or 13.3%, respectively, compared to the same periods in 2013. The decrease in the quarter was due to ongoing projects nearing completion while new projects were in the early stages of construction. The increase during the nine months ended September 30, 2014 was due to entering 2014 with greater backlog than 2013 and settlement of outstanding claims. Decreases in the California and Northwest groups were from ongoing projects nearing completion coupled with delayed starts on other work.

Construction Materials Revenue	Three Months Ended September 30,								Nine Months Ended September 30,
(dollars in thousands)	2014				2013				2014				2013
California	$	52,268	56.1	%	$	42,221	50.8	%	$	116,429	57.9	%	$	94,619	54.7	%
Northwest	40,946		43.9		40,951		49.2		84,556		42.1		78,488		45.3
Total	$	93,214	100.0	%	$	83,172	100.0	%	$	200,985	100.0	%	$	173,107	100.0	%

Construction Materials revenue for the three and nine months ended September 30, 2014 increased by $10.0 million, or 12.1%, and $27.9 million, or 16.1%, respectively, compared to the same periods in 2013 primarily due to increased volume and pricing.

Real Estate Revenue

Real Estate revenue was immaterial during all periods presented.

Contract Backlog

Our contract backlog consists of the 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 to the extent we believe funding is probable. Contracts that include unexercised contract options and unissued task orders are included in contract backlog as task orders are issued or options are exercised. 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.

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

Total Contract Backlog by Segment
(dollars in thousands)	September 30, 2014				June 30, 2014				September 30, 2013
Construction	$	817,365	27.5	%	$	974,986	38.1	%	$	705,839	25.6	%
Large Project Construction	2,154,289		72.5		1,586,879		61.9		2,049,003		74.4
Total	$	2,971,654	100.0	%	$	2,561,865	100.0	%	$	2,754,842	100.0	%

Construction Contract Backlog
(dollars in thousands)	September 30, 2014				June 30, 2014				September 30, 2013
California:
Public sector	$	307,351	37.6	%	$	352,760	36.1	%	$	406,503	57.5	%
Private sector	72,906		8.9		76,777		7.9		39,403		5.6
Northwest:
Public sector	227,417		27.8		321,748		33.0		153,419		21.7
Private sector	48,003		5.9		50,673		5.2		30,089		4.3
Heavy Civil:
Public sector	33,633		4.1		41,347		4.2		2,141		0.3
Kenny:
Public sector	62,698		7.7		62,890		6.5		46,351		6.6
Private sector	65,357		8.0		68,791		7.1		27,933		4.0
Total	$	817,365	100.0	%	$	974,986	100.0	%	$	705,839	100.0	%

Construction contract backlog of $817.4 million at September 30, 2014 was $157.6 million, or 16.2%, lower than at June 30, 2014 and $111.5 million, or 15.8%, higher than at September 30, 2013 due to progress on existing projects and timing of new awards. Significant new awards during the three months ended September 30, 2014, included a $20.8 million freeway project in California, a $23.8 million water system improvement project in Illinois and a $29.6 million runway rehabilitation project in Utah. The increase at September 30, 2014 when compared to September 30, 2013 was primarily due to improved success rates on bidding activity, partially offset by progress on existing projects, in all operating groups and sectors except the California public sector. The decrease in the California public sector was due to progress on existing projects without the offset of new awards due to a focused effort to not bid certain public entities in markets where margins do not meet our minimum requirements. Not included in Construction contract backlog as of September 30, 2014 is $88.1 million associated with Kenny underground contracts that will be booked into contract backlog as additional task orders are issued by the owners, the majority of which is expected to occur within the next twelve months.

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Large Project Construction Contract Backlog
(dollars in thousands)	September 30, 2014				June 30, 2014				September 30, 2013
California1	$	30,130	1.4	%	$	35,183	2.2	%	$	68,271	3.3	%
Northwest1	42,668		2.0		1,667		0.1		10,024		0.5
Heavy Civil1	1,830,875		85.0		1,262,349		79.6		1,618,026		79.0
Kenny:
Public sector2	165,542		7.7		198,046		12.5		172,893		8.4
Private sector	85,074		3.9		89,634		5.6		179,789		8.8
Total	$	2,154,289	100.0	%	$	1,586,879	100.0	%	$	2,049,003	100.0	%

¹For all dates presented, Large Project Construction contract backlog was related to contracts in the Public sector.

²As of September 30, 2014, June 30, 2014 and September 30, 2013, $41.6 million, $44.2 million and $60.5 million, respectively, of Kenny public sector 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 $2.2 billion as of September 30, 2014 was $567.4 million, or 35.8%, higher than at June 30, 2014 and $105.3 million, or 5.1%, higher than at September 30, 2013. The increases were primarily due to the award of a $696.6 million design/build highway improvement project in Florida partially offset by progress on existing projects. In October 2014, Granite’s joint venture team was selected for the Rapid Bridge replacement project in Pennsylvania. Granite’s 40% share of the $899 million contract will be booked into contract backlog when a final contract is approved and a notice to proceed is issued, which is expected to be in the fourth quarter of 2014.

Non-controlling partners’ share of Large Project Construction contract backlog as of September 30, 2014, June 30, 2014, and September 30, 2013 was $28.0 million, $36.5 million and $71.6 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 September 30,						Nine Months Ended September 30,
(dollars in thousands)	2014			2013 As Revised			2014			2013 As Revised
Construction	$	48,802		$	50,719		$	82,773		$	87,989
Percent of  segment revenue	10.9		%	10.8		%	9.5		%	9.2		%
Large Project Construction	5,679			(2,163		)	72,264			42,129
Percent of segment revenue	3.2			(1.2		)	11.8			7.8
Construction Materials	12,204			7,288			15,449			5,268
Percent of segment revenue	13.1			8.8			7.7			3.0
Real Estate	7			16			29			127
Percent of segment revenue	100.0			100.0			100.0			90.1
Total gross profit	$	66,692		$	55,860		$	170,515		$	135,513
Percent of total revenue	9.3		%	7.6		%	10.1		%	8.1		%

Revenue in an amount equal to cost incurred is recognized until there is sufficient information to determine the estimated profit on the project with a reasonable level of certainty. Gross profit can vary significantly in periods when deferred profit is recognized on one or more projects 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. In addition, gross profit can vary significantly if we have outstanding claims that are not resolved or executed.

The following table presents revenue from projects that have not yet recognized profit:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2014		2013		2014		2013
Construction	$	14,130	$	22,572	$	16,502	$	32,879
Large Project Construction	42,761		37,971		110,801		50,747
Total revenue from contracts with deferred profit	$	56,891	$	60,543	$	127,303	$	83,626

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When we experience significant changes in our estimates of costs to complete, 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 revision in estimates for the current period. In our review of these changes for the three and nine months ended September 30, 2014 and 2013, we did not identify any amounts that should have been recorded in a prior period.

Construction gross profit for the three and nine months ended September 30, 2014 decreased by $1.9 million, or 3.8%, and $5.2 million, or 5.9%, respectively, compared to the same periods in 2013. Construction gross profit as a percentage of segment revenue for the three months ended September 30, 2014 remained relatively unchanged during the three and nine months ended September 30, 2014 when compared to the same periods in 2013 with the decreases in gross profit due to volume reductions.

Large Project Construction gross profit for the three and nine months ended September 30, 2014 increased by $7.8 million, or over 100%, and $30.1 million, or 71.5%, respectively, when compared to the same periods in 2013. The increase for the three months ended September 30, 2014 was due to project progression. The increase for the nine months ended September 30, 2014 was due to project progression as well as claims settlements despite a $60.0 million increase in revenue from projects that have not yet recognized profit and remaining outstanding claims.

Construction Materials gross profit for the three and nine months ended September 30, 2014 increased by $4.9 million, or 67.5%, and $10.2 million, or over 100%, respectively, compared to the same periods in 2013. The increases were primarily due to operating cost reductions in both the California and Northwest groups.

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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 September 30,						Nine Months Ended September 30,
(dollars in thousands)	2014			2013 As Revised			2014			2013 As Revised
Selling
Salaries and related expenses	$	9,255		$	8,702		$	30,701		$	29,942
Other selling expenses	2,907			1,795			6,911			3,908
Total selling	12,162			10,497			37,612			33,850
General and administrative
Salaries and related expenses	16,198			15,383			51,143			53,512
Restricted stock amortization	2,234			2,564			10,114			12,202
Other general and administrative expenses	16,792			17,083			48,862			49,913
Total general and administrative	35,224			35,030			110,119			115,627
Total selling, general and administrative	$	47,386		$	45,527		$	147,731		$	149,477
Percent of revenue	6.6		%	6.2		%	8.8		%	9.0		%

Selling, general and administrative expenses for the three and nine months ended September 30, 2014 increased $1.9 million, or 4.1% and decreased $1.7 million, or 1.2%, respectively, compared to the same periods in 2013.

Selling Expenses

Selling expenses include the costs for materials facility 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 nine months ended September 30, 2014 increased $1.7 million, or 15.9%, and $3.8 million, or 11.1%, respectively, compared to the same periods in 2013 primarily due to increased bidding activity during the 2014 periods.

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. Salaries and related expenses include salaries, fringe and cash incentive compensation. Other general and administrative expenses include travel and entertainment, outside services, information technology, depreciation, occupancy, training, office supplies, changes in the fair market value of our Non-Qualified Deferred Compensation plan liability and other miscellaneous expenses none of which individually exceeded 10% of total general and administrative expenses.

General and administrative expenses for the three months ended September 30, 2014 increased $0.2 million, or 0.6%, and decreased $5.5 million, or 4.8% for the three and nine months ended September 30, 2014 compared to the same periods in 2013. The decrease during the nine months was primarily due to the timing of restricted stock unit vesting and incentive compensation partially offset by increases in costs associated with continuous improvement efforts.

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Other Income (Expense)

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

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2014			2013			2014			2013
Interest income	$	451		$	602		$	1,343		$	1,110
Interest expense	(2,488		)	(3,736		)	(10,426		)	(11,081		)
Equity in income (loss) of affiliates	1,109			(2		)	2,310			273
Other (expense) income, net	(1,196		)	1,022			450			1,630
Total other expense	$	(2,124	)	$	(2,114	)	$	(6,323	)	$	(8,068	)

Total other expense remained relatively unchanged for the three months ended September 30, 2014 and decreased $1.7 million, or 21.6%, for the nine months ended September 30, 2014 compared to the same periods in 2013. The decrease for the nine months was primarily due to a $2.0 million increase in equity in income of affiliates from the sale of real estate assets.

Income Taxes

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

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2014			2013 As Revised			2014			2013 As Revised
Provision for (benefit from) income taxes	$	6,081		$	4,946		$	8,301		$	(2,867	)
Effective tax rate	30.1		%	43.1		%	35.5		%	19.9		%

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 decreased to 30.1% from 43.1% and increased to 35.5% from 19.9% for the three and nine months ended September 30, 2014, respectively, primarily due to adjusting our estimate of our annual effective tax rate and a decrease in nondeductible expenses. The increase for the nine months ended September 30, 2014 was partially offset by the effect of state tax laws which were enacted during 2014.

Non-controlling Interests

The following table presents the amount attributable to non-controlling interests in consolidated entities for the respective periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2014		2013 As Revised		2014			2013 As Revised
Amount attributable to non-controlling interests	$	1,177	$	6,505	$	(6,681	)	$	3,986

The amount attributable to non-controlling interests represents the non-controlling owners’ share of the income or loss of our consolidated construction joint ventures and real estate entities. The change for the three and nine months ended September 30, 2014 was primarily due to the settlement of outstanding claims with contract owners partially offset with contract losses in the 2014 periods. The change during the nine months was also due to certain profitable projects nearing completion.

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Certain Legal Proceedings

As discussed in Note 14 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 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 $134.3 million was available at September 30, 2014, primarily to provide capital needs to fund growth opportunities, generated either internally or through acquisitions (see “Credit Agreement” section below for further information). We do not anticipate that this credit facility will be required to fund future working capital needs associated with our existing operations within the next twelve months. 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 on 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)	September 30, 2014		December 31, 2013		September 30, 2013
Cash and cash equivalents excluding consolidated joint ventures	$	137,656	$	190,321	$	155,330
Consolidated construction joint venture cash and cash equivalents1	29,518		38,800		57,133
Total consolidated cash and cash equivalents	167,174		229,121		212,463
Short-term and long-term marketable securities2	102,090		117,202		86,906
Total cash, cash equivalents and marketable securities	$	269,264	$	346,323	$	299,369

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 4 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 deposits and money market funds held with established national financial institutions. Marketable securities consist of U.S. Government and agency obligations and commercial paper, with the September 30, 2013 balance including municipal bonds as well.

Consolidated joint ventures were responsible for $9.3 million, or 15.0%, of the $61.9 million decrease in cash and cash equivalents during the nine months ended September 30, 2014. Consolidated joint venture cash and cash equivalents available to Granite was $18.1 million, $23.8 million and $33.8 million as of September 30, 2014, December 31, 2013 and September 30, 2013, respectively. Unconsolidated joint venture cash and cash equivalents available to Granite was $89.8 million, $112.8 million and $128.2 million as of September 30, 2014, December 31, 2013 and September 30, 2013, respectively. Cash and cash equivalents held by our joint ventures are primarily used to fulfill the working capital needs of each joint venture’s project, and generally cannot be distributed to any of the venture partners without the consent of the majority of the venture partners.

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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.

In March 2014, we entered into an interest rate swap with a notional amount of $100.0 million which matures in June 2018 to convert the interest rate of our 2019 Notes (as defined in “Senior Notes Payable” section below) from a fixed rate of 6.11% to a floating rate of 4.15% plus six-month LIBOR. LIBOR floating rate is variable and subject to market changes over the life of the swap with no guarantees to settle as forecasted. The interest rate swap is reported at fair value. During the three and nine months ended September 30, 2014, we recorded losses of $0.6 million and gains of $0.3 million, respectively, related to this interest rate swap in other (expense) income, net in our condensed consolidated statement of operations.

In March 2014, we entered into two diesel commodity swaps covering May to October, 2014 and 2015 which represented roughly 25% of our forecasted purchase for diesel.  In May 2014, we entered into two natural gas commodity swaps covering June to October 2014 and May to October 2015 representing roughly 25% of our forecasted purchase of natural gas.  The commodity swaps are reported at fair value using Level 2 inputs, and gains or losses are recorded in other income (expense), net in our condensed consolidated statement of operations and were losses of $0.6 million and $0.7 million during the three and nine months ended September 30, 2014, respectively.

Cash Flows	Nine Months Ended September 30,
(in thousands)	2014			2013 As Revised
Net cash (used in) provided by:
Operating activities	$	(46,833	)	$	(64,515	)
Investing activities	(11,298		)	7,713
Financing activities	(3,816		)	(52,725		)

Cash flows from operating activities result primarily from our earnings or losses, and are also impacted by changes in operating assets and liabilities. As a large construction and heavy civil contractor and construction materials producer, our operating cash flows are subject to seasonal cycles as well as the cycles are primarily associated with winning, performing and closing projects. Additionally, operating cash flows are impacted by 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 $46.8 million for the nine months ended September 30, 2014 represents a $17.7 million decrease from the amount of cash used in operating activities during the same period in 2013. The favorable change was mainly attributable to a $43.7 million increase in net income after adjusting for non-cash items, offset by a $17.3 million decrease in net cash from unconsolidated construction joint ventures and a $10.2 million increase in inventories.

Cash used in investing activities of $11.3 million for the nine months ended September 30, 2014 represents an $19.0 million change from the $7.7 million of cash provided by investing activities during the same period in 2013. The change in net cash related to investing activities was primarily due to an increase in capital expenditures as well as a decrease in net proceeds from marketable securities driven by the Company’s cash flow requirements and/or the maturities of investments.

Cash used in financing activities of $3.8 million for the nine months ended September 30, 2014 decreased $48.9 million compared to the same period in 2013. The change was primarily driven by a decrease in net distributions to non-controlling partners related to consolidated construction joint ventures and a $10.0 million decrease in long-term debt principal payments.

Capital Expenditures

During the nine months ended September 30, 2014, we had capital expenditures of $37.5 million compared to $30.5 million during the same period in 2013. 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 $50.0 million and $60.0 million in capital expenditures during 2014. During the year ended December 31, 2013, we had capital expenditures of $43.7 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 on October 11, 2016, of which $134.3 million was available at September 30, 2014. At September 30, 2014, December 31, 2013 and September 30, 2013, there was a revolving loan of $70.0 million outstanding under the Credit Agreement related to financing the Kenny acquisition, which is included in long-term debt on our condensed consolidated balance sheets. In addition, there were standby letters of credit totaling approximately $10.8 million as of September 30, 2014. The letters of credit will expire between October 2014 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 was 2.25% for loans bearing interest based on LIBOR and 1.25% for loans bearing interest at the base rate at September 30, 2014. Accordingly, the effective interest rate was between 2.48% and 4.50% at September 30, 2014. 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 paid off or 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. On a periodic basis, we assess the timing of payment depending on facts and circumstances that exist at the time of our assessment. 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, so long as certain conditions as defined by the terms in the Credit Agreement are satisfied (“Collateral Release Period”). However, if subsequent to exercising the option, 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. As of September 30, 2014, the conditions for the exercise of this option were not satisfied.

Senior Notes Payable

As of September 30, 2014, 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 agreement 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 September 30, 2014, approximately $2.3 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 September 30, 2014, the principal amount of debt of our consolidated real estate entities secured by mortgages was $7.0 million, of which approximately $1.2 million was included in current liabilities and approximately $5.8 million was included in long-term liabilities on our condensed consolidated balance sheets.

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Covenants and Events of Default

Our debt and credit agreements require us to comply with various affirmative, restrictive and financial covenants, including the financial covenants described below. 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.

The most significant financial covenants under the terms of our Credit Agreement and 2019 NPA 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 amendments to the Credit Agreement and 2019 NPA, which were filed as Exhibits 10.31 and 10.32, respectively, to our Form 10-K filed March 3, 2014. As of September 30, 2014 and pursuant to the definitions in the agreements, our Consolidated Tangible Net Worth was $755.9 million, which exceeded the minimum of $617.4 million, the Consolidated Leverage Ratio was 2.21, which did not exceed the maximum of 3.25 and the Consolidated Interest Coverage Ratio was 8.94 which exceeded the minimum of 4.00.

As of September 30, 2014, we were in compliance with all covenants contained in the Credit Agreement and 2019 NPA, as amended, and the 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.

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 September 30, 2014, $64.1 million remained available under this authorization. We did not purchase shares under the share purchase program in any of the periods presented.

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 Securities and Exchange Commission (“SEC”). 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 SEC, www.sec.gov.

44

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no significant change in our exposure to market risks since December 31, 2013.

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management carried out, as of September 30, 2014, 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 Rules 13a-15(e) and 15d-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 September 30, 2014, 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 quarter ended September 30, 2014, there were no changes in our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

45

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 14 - 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, 2013.

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

During the three months ended September 30, 2014, 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 ended September 30, 2014:

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
July 1, 2014 through July 31, 2014	10,270	$	36.75	—	$	64,065,401
August 1, 2014 through August 31, 2014	—	$	—	—	$	64,065,401
September 1, 2014 through September 30, 2014	162	$	34.61	—	$	64,065,401
	10,432	$	36.71	—

¹The number of shares purchased is in connection with employee tax withholding for shares/units vested 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.

46

Item 6. EXHIBITS

10.1	†	Profit Sharing and 401(k) Plan Amendment No. 1 to Amended and Restated Plan
10.2	†	Key Management Deferred Compensation Plan II Amendment No. 4
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

47

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:	November 3, 2014	By:	/s/ Laurel J. Krzeminski
			Laurel J. Krzeminski
			Senior Vice President and Chief Financial Officer
			(Principal Financial and Accounting Officer)

48

EX-10.1

Exhibit 10.1

GRANITE CONSTRUCTION

PROFIT SHARING AND 401(k) PLAN

Amendment No. 1 to Amended and Restated Plan

WHEREAS, Granite Construction Incorporated (the "Corporation") maintains the Granite Construction Profit Sharing and 401(k) Plan, as amended and restated effective as of January 1, 2014 (the "Plan"), for the benefit of its eligible Employees;

WHEREAS, it is desirable to amend the Plan to provide that an Independent Fiduciary shall have the sole fiduciary responsibility for monitoring the Corporation’s financial condition to determine whether the continued investment of the Prior ESOP Accounts in the Prior ESOP Fund is in the best interest of ESOP participants and beneficiaries, and is consistent with the fiduciary requirements under the Employee Retirement Income Security Act of 1974, as amended; and

WHEREAS, it is desirable to amend the Plan to reflect that Fiduciary Counselors, Inc., has been appointed as the Independent Fiduciary for the Prior ESOP Fund, effective as of October 1, 2014.

NOW, THEREFORE, the Plan is hereby amended, effective as of October 1, 2014, as follows:

1.    The definition of "Independent Fiduciary" in Section 2 is restated to read as follows:

1

   Independent Fiduciary……………. Fiduciary Counselors Inc., an "investment adviser" within the meaning of the Investment Advisers Act of 1940, who shall have the limited fiduciary duties and responsibilities with respect to the Plan as set forth in the Trust Agreement and Sections 5, 8(d)(2) and 17 of the Plan.

2.    Section 8(d)(2) is restated to read as follows:

(2)    Investment of Prior ESOP Account - A "Prior ESOP Fund" shall be established to hold the shares of Stock transferred from the Prior ESOP. Each Participant shall be able to direct the investment of his Prior ESOP Account among the Stock Fund and such investment funds as the Committee shall from time to time cause to be made available; provided, however, that any amounts divested from the Prior ESOP Fund may not be reinvested into Prior ESOP Fund.

The Independent Fiduciary shall have sole fiduciary responsibility for monitoring the Company’s financial condition to determine whether the continued investment of the Prior ESOP Accounts in the Prior ESOP Fund is consistent with ERISA. If the Independent Fiduciary determines that the continued investment of Prior ESOP Accounts in the Prior ESOP Fund is inconsistent with ERISA, the Independent Fiduciary shall be responsible and have sole discretion for determining the manner of liquidation of the Prior ESOP Fund. The rights and responsibilities of the Independent Fiduciary shall be set forth in an engagement agreement between the Company and the Independent Fiduciary, and the terms of such engagement agreement shall be incorporated in the Plan by reference.

2

3.    Section 17(c) is amended by adding the following new paragraph at the end thereof:

Notwithstanding the foregoing and in accordance with Section 8(d)(2), the Independent Fiduciary shall also have the sole fiduciary responsibility for monitoring the Company’s financial condition to determine whether the continued investment of the Prior ESOP Accounts in the Prior ESOP Fund is consistent with ERISA. If the Independent Fiduciary determines that the continued investment of Prior ESOP Accounts in the Prior ESOP Fund is inconsistent with ERISA, the Independent Fiduciary shall be responsible and have sole discretion for determining the manner of liquidation of the Prior ESOP Fund. The rights and responsibilities of the Independent Fiduciary with respect to the Prior ESOP Fund shall be set forth in an engagement agreement between the Company and the Independent Fiduciary, and the terms of such engagement agreement shall be incorporated in the Plan by reference.

To record the adoption of this Amendment No. 1 to the Plan, the Corporation has caused it to be executed this 11^th day of September, 2014.

                             GRANITE CONSTRUCTION    

INCORPORATED

By:	/s/ James H. Roberts
	James H. Roberts, President & CEO
By:	/s/ Philip M. DeCocco
	Philip M. DeCocco, Senior Vice President Human Resources

3

EX-10.2

Exhibit 10.2

GRANITE CONSTRUCTION INCORPORATED

KEY MANAGEMENT DEFERRED COMPENSATION PLAN II

(Amended and Restated Effective January 1, 2010)

Amendment No. 4

Section 11(a) of the Granite Construction Incorporated Key Management Deferred Compensation Plan II, as amended and restated effective January 1, 2010 (the “Plan”), authorizes amendments to the Plan by action of the Compensation Committee of the Company’s Board of Directors. Accordingly, the Plan is hereby amended, effective January 1, 2015, as follows:

1.    Section 8 is amended by adding the following sentence at the end thereof:

“Notwithstanding any other provision of the Plan to the contrary, this Section 8 shall apply to employee-Participants who first become Participants on or after January 1, 2015 provided that each employee-Participant elects to defer a minimum amount from salary (a dollar amount or a percentage of salary) as may be determined by the Company from time to time.”

Except as amended hereby, the terms of the Plan remain in full force and effect.

IN WITNESS WHEREOF, this Amendment is executed this 11^th day of September 2014.

GRANITE CONSTRUCTION INCORPORATED

/s/ James H. Roberts                    

James H. Roberts

President and Chief Executive Officer

1

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:	November 3, 2014	/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:	November 3, 2014	/s/ Laurel J. Krzeminski
		Laurel J. Krzeminski
		Senior Vice President and Chief Financial Officer
		(Principal Financial and Accounting 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 September 30, 2014 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:	November 3, 2014	/s/ James H. Roberts
		James H. Roberts
		President and Chief Executive Officer
Dated:	November 3, 2014	/s/ Laurel J. Krzeminski
		Laurel J. Krzeminski
		Senior Vice President and Chief Financial Officer
		(Principal Financial and Accounting 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 19 inspections at 17 of our mines during the three months ended September 30, 2014. There were no reportable citations or orders following 12 of those inspections. MSHA conducted 22 inspections at 16 of our mines during the three months ended September 30, 2013. There were no reportable citations or orders following 21 of those inspections. 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 September 30, 2014 and 2013. 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 September 30,
Name of Mine	2014	2013
Arvin Pit	1	—
Bradshaw	—	3
Walker Pit	1	—
Total	2	3

During the three months ended September 30, 2014 and 2013, 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 September 30, 2014 and 2013 were $100 and $2,747, respectively.

XML

Marketable Securities - Carrying Amounts of Marketable Securities (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Schedule of Marketable Securities [Line Items]
Short-term marketable securities	$ 27,950	$ 49,968	$ 22,892
Long-term marketable securities	74,140	67,234	64,014
Held-to-Maturity [Member]
Schedule of Marketable Securities [Line Items]
Short-term marketable securities	27,950	49,968	22,892
Long-term marketable securities	74,140	67,234	64,014
Total marketable securities	102,090	117,202	86,906
U.S. Government and agency obligations [Member] | Held-to-Maturity [Member]
Schedule of Marketable Securities [Line Items]
Short-term marketable securities	12,967	10,000	1,260
Long-term marketable securities	74,140	67,234	64,014
Commercial paper [Member] | Held-to-Maturity [Member]
Schedule of Marketable Securities [Line Items]
Short-term marketable securities	14,983	39,968	19,982
Municipal bonds [Member] | Held-to-Maturity [Member]
Schedule of Marketable Securities [Line Items]
Short-term marketable securities	$ 0	$ 0	$ 1,650

XML

Earnings per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share [Abstract]
Net Income (Loss) Attributable to Parent	$ 15,282	$ 13,037	$ 8,370	$ (7,526)
Weighted average common shares outstanding, basic	39,150	38,876	39,073	38,773
Weighted average common shares outstanding, diluted	39,813	39,759	39,790	38,773
Basic (in dollars per share)	$ 0.39	$ 0.34	$ 0.21	$ (0.19)
Diluted (in dollars per share)	$ 0.38	$ 0.33	$ 0.21	$ (0.19)

XML

Real Estate Entities and Investments in Affiliates - Investments in Affiliates (Details) (USD $)							3 Months Ended		9 Months Ended										3 Months Ended				9 Months Ended				3 Months Ended		9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Sep. 30, 2014 Joint Venture Unconsolidated [Member]	Dec. 31, 2013 Joint Venture Unconsolidated [Member]	Sep. 30, 2013 Joint Venture Unconsolidated [Member]	Sep. 30, 2014 Joint Venture Unconsolidated [Member] Unconsolidated Construction Joint Venture [Member] project	Sep. 30, 2013 Joint Venture Unconsolidated [Member] Unconsolidated Construction Joint Venture [Member]	Sep. 30, 2014 Joint Venture Unconsolidated [Member] Unconsolidated Construction Joint Venture [Member] project	Sep. 30, 2013 Joint Venture Unconsolidated [Member] Unconsolidated Construction Joint Venture [Member]	Sep. 30, 2014 Joint Venture Unconsolidated [Member] Other Affiliates [Member]	Dec. 31, 2013 Joint Venture Unconsolidated [Member] Other Affiliates [Member]	Sep. 30, 2013 Joint Venture Unconsolidated [Member] Other Affiliates [Member]	Sep. 30, 2014 Joint Venture Unconsolidated [Member] Equity Method investments in Real Estate Affiliates [Member]	Dec. 31, 2013 Joint Venture Unconsolidated [Member] Equity Method investments in Real Estate Affiliates [Member]	Sep. 30, 2013 Joint Venture Unconsolidated [Member] Equity Method investments in Real Estate Affiliates [Member]	Sep. 30, 2014 Joint Venture Unconsolidated [Member] Minimum [Member] Variable Interest Entity, Not Primary Beneficiary [Member]	Sep. 30, 2014 Joint Venture Unconsolidated [Member] Maximum [Member] Variable Interest Entity, Not Primary Beneficiary [Member]	Sep. 30, 2014 Other Partners Interest in Partnerships [Member] Unconsolidated Construction Joint Venture [Member]		Sep. 30, 2013 Other Partners Interest in Partnerships [Member] Unconsolidated Construction Joint Venture [Member]		Sep. 30, 2014 Other Partners Interest in Partnerships [Member] Unconsolidated Construction Joint Venture [Member]		Sep. 30, 2013 Other Partners Interest in Partnerships [Member] Unconsolidated Construction Joint Venture [Member]		Sep. 30, 2014 Reporting Entitys Interest in Joint Venture [Member] Unconsolidated Construction Joint Venture [Member]	Sep. 30, 2013 Reporting Entitys Interest in Joint Venture [Member] Unconsolidated Construction Joint Venture [Member]	Sep. 30, 2014 Reporting Entitys Interest in Joint Venture [Member] Unconsolidated Construction Joint Venture [Member]	Sep. 30, 2013 Reporting Entitys Interest in Joint Venture [Member] Unconsolidated Construction Joint Venture [Member]	Sep. 30, 2014 Real Estate Segment [Member] Joint Venture Unconsolidated [Member] Minimum [Member] Real Estate Entities [Member] Variable Interest Entity, Not Primary Beneficiary [Member]	Sep. 30, 2014 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]
Unconsolidated Construction Joint Venture Revenue							$ 313,945,000	$ 363,523,000	$ 1,055,276,000	$ 848,082,000									$ 213,068,000	[1]	$ 259,655,000	[1]	$ 741,451,000	[1]	$ 586,016,000	[1]	$ 100,877,000	$ 103,868,000	$ 313,825,000	$ 262,066,000
Investments in affiliates	34,177,000	32,480,000	31,338,000	34,177,000	32,480,000	31,338,000					10,137,000	11,088,000	10,850,000	24,040,000	21,392,000	20,488,000
Real Estate Development Projects Range of Total Assets																															1,900,000	57,000,000
Equity Method Investment, Summarized Financial Information, Assets				172,220,000	173,988,000	166,601,000
Equity Method Investments Summarized Financial Information Net Assets				103,651,000	99,444,000	95,490,000
Equity Method Investments			14,000,000	17,800,000	14,900,000						34,177,000	32,480,000	31,338,000
Number of projects							11		11
Investments in affiliates																	300,000	22,500,000
Unconsolidated Construction Joint Venture Cost of Revenue							338,848,000	290,112,000	982,014,000	661,587,000									239,661,000	[1]	203,804,000	[1]	696,633,000	[1]	452,784,000	[1]	99,187,000	86,308,000	285,381,000	208,803,000
Unconsolidated Construction Joint Venture Gross Profit Loss																											$ 1,690,000	$ 17,560,000	$ 28,444,000	$ 53,263,000

[1] 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.

XML

Equity (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014		Sep. 30, 2013
Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance			$ 786,344		$ 871,858
Purchase of common stock			(4,751)	[1]	(5,457)	[2]
Other transactions with shareholders			10,505	[3]	11,430	[3]
Transactions with noncontrolling interests, net			15,174		(21,654)
Net Income (Loss) Attributable to Parent	15,282	13,037	8,370		(7,526)
Comprehensive income (loss):
Net income (loss)	14,105	6,532	15,051		(11,512)
Dividends on common stock			(15,260)		(15,150)
Stockholders' equity, ending balance	807,063	829,515	807,063		829,515
Shares Purchased for Tax Withholding for Share Based Compensation			123,000		181,000
Granite Construction [Member]
Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance			781,940		829,953
Purchase of common stock			(4,751)	[1]	(5,457)	[2]
Other transactions with shareholders			10,505	[3]	11,430	[3]
Transactions with noncontrolling interests, net			0		0
Net Income (Loss) Attributable to Parent			8,370
Comprehensive income (loss):
Net income (loss)					(7,526)
Dividends on common stock			(15,260)		(15,150)
Stockholders' equity, ending balance	780,804	813,250	780,804		813,250
Noncontrolling Interest [Member]
Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance			4,404		41,905
Purchase of common stock			0	[1]	0	[2]
Other transactions with shareholders			0	[3]	0	[3]
Transactions with noncontrolling interests, net			15,174		(21,654)
Comprehensive income (loss):
Net income (loss)			6,681		(3,986)
Dividends on common stock			0		0
Stockholders' equity, ending balance	$ 26,259	$ 16,265	$ 26,259		$ 16,265

[1] Represents 123,000 shares purchased in connection with employee tax withholding for shares/units vested under our Amended and Restated 1999 Equity Incentive Plan.

[2] Represents 181,000 shares purchased in connection with employee tax withholding for shares/units vested under our Amended and Restated 1999 Equity Incentive Plan.

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

XML

Construction and Line Item Joint Ventures - Unconsolidated Construction Joint Ventures (Details) (USD $)	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013		Dec. 31, 2013
Construction Joint Venture [Line Items]
Equity in construction joint ventures	$ 181,259,000		$ 161,063,000		$ 181,259,000		$ 161,063,000		$ 162,673,000
Granite Construction [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Unconsolidated Construction Joint Venture Revenue	1,800,000		21,300,000		28,100,000		53,200,000
Partnership Interest [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Revenue Remaining to be Recognized on Unconsolidated Construction Joint Ventures	6,100,000,000				6,100,000,000
Joint Venture Consolidated [Member] | Consolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Number of Active Joint Venture Projects	3				3
Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Number of Active Joint Venture Projects	11				11
Unconsolidated Construction Joint Venture Revenue	313,945,000		363,523,000		1,055,276,000		848,082,000
Unconsolidated Construction Joint Venture Cost of Revenue	338,848,000		290,112,000		982,014,000		661,587,000
Unconsolidated Construction Joint Venture Revenue	(25,200,000)		71,100,000		75,200,000		182,800,000
Joint Venture Unconsolidated [Member] | Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Number of Active Joint Venture Projects	4				4
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	1,800,000,000				1,800,000,000
Unconsolidated Construction Joint Venture Assets	293,467,000		294,304,000		293,467,000		294,304,000		296,391,000
Unconsolidated Construction Joint Venture Liabilities	112,208,000		133,241,000		112,208,000		133,241,000		133,718,000
Unconsolidated Construction Joint Venture Revenue	100,877,000		103,868,000		313,825,000		262,066,000
Unconsolidated Construction Joint Venture Cost of Revenue	99,187,000		86,308,000		285,381,000		208,803,000
Unconsolidated Construction Joint Venture Gross Profit Loss	1,690,000		17,560,000		28,444,000		53,263,000
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	4,300,000,000				4,300,000,000
Unconsolidated Construction Joint Venture Assets	530,585,000		557,857,000		530,585,000		557,857,000		612,530,000
Unconsolidated Construction Joint Venture Liabilities	269,264,000		336,885,000		269,264,000		336,885,000		371,760,000
Unconsolidated Construction Joint Venture Revenue	213,068,000	[1]	259,655,000	[1]	741,451,000	[1]	586,016,000	[1]
Unconsolidated Construction Joint Venture Cost of Revenue	239,661,000	[1]	203,804,000	[1]	696,633,000	[1]	452,784,000	[1]
Minimum [Member] | Joint Venture Consolidated [Member] | Consolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	32,400,000				32,400,000
Proportionate Share of the Consolidated Joint Ventures Equity Owned by or Beneficial Interest in the Reporting Entity Directly or Indirectly	55.00%				55.00%
Minimum [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	72,800,000				72,800,000
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	42,600,000				42,600,000
Revenue Per Project Remaining to be Recognized on Line Item Construction Joint Ventures	100,000				100,000
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	28,700,000				28,700,000
Maximum [Member] | Joint Venture Consolidated [Member] | Consolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	364,300,000				364,300,000
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	86,100,000				86,100,000
Revenue Per Project Remaining to be Recognized on Line Item Construction Joint Ventures	27,600,000				27,600,000
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	696,900,000				696,900,000
Maximum [Member] | Reporting Entitys Interest in Joint Venture [Member] | Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	63,800,000				63,800,000
Cash and Cash Equivalents [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Unconsolidated Construction Joint Venture Assets	286,040,000	[2]	412,506,000	[2]	286,040,000	[2]	412,506,000	[2]	385,094,000	[2]
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	538,012,000		439,655,000		538,012,000		439,655,000		523,827,000
Accounts Payable [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Unconsolidated Construction Joint Venture Liabilities	141,630,000		127,695,000		141,630,000		127,695,000		155,985,000
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	178,781,000	[2]	274,052,000	[2]	178,781,000	[2]	274,052,000	[2]	245,341,000	[2]
Accrued Liabilities [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Unconsolidated Construction Joint Venture Liabilities	$ 61,061,000		$ 68,379,000		$ 61,061,000		$ 68,379,000		$ 104,152,000

[1] 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.

[2] 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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Weighted Average Shares Outstanding and Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2014

Earnings Per Share [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 (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2014	2013	2014	2013
Weighted average shares outstanding:
Weighted average common stock outstanding	39,150	38,876	39,073	38,773
Total basic weighted average shares outstanding	39,150	38,876	39,073	38,773
Diluted weighted average shares outstanding:
Weighted average common stock outstanding, basic	39,150	38,876	39,073	38,773
Effect of dilutive securities:
Common stock options and restricted stock units1	663	883	717	—
Total weighted average shares outstanding assuming dilution	39,813	39,759	39,790	38,773

¹Due to the net loss for the nine months ended September 30, 2013, restricted stock units and common stock options representing approximately 863,000 shares have been excluded from the number of shares used in calculating diluted net loss per share, as their inclusion would be antidilutive.

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Following is a calculation of basic and diluted EPS (in thousands, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013 As Revised		2014		2013 As Revised
Basic
Numerator:
Net income (loss) allocated to common shareholders for basic calculation	$	15,282	$	13,037	$	8,370	$	(7,526	)
Denominator:
Weighted average common shares outstanding, basic	39,150		38,876		39,073		38,773
Net income (loss) per share, basic	$	0.39	$	0.34	$	0.21	$	(0.19	)
Diluted
Numerator:
Net income (loss) allocated to common shareholders for diluted calculation	$	15,282	$	13,037	$	8,370	$	(7,526	)
Denominator:
Weighted average common shares outstanding, diluted	39,813		39,759		39,790		38,773
Net income (loss) per share, diluted	$	0.38	$	0.33	$	0.21	$	(0.19	)

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Business Segment Information (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Segment Reporting Information [Line Items]
Construction	$ 447,097,000	$ 470,567,000	$ 873,357,000	$ 956,287,000
Total revenue	719,764,000	739,752,000	1,685,481,000	1,668,803,000
Real Estate	7,000	16,000	29,000	141,000
Construction Materials	93,214,000	83,172,000	200,985,000	173,107,000
Large Project Construction	179,446,000	185,997,000	611,110,000	539,268,000
Gross profit	66,692,000	55,860,000	170,515,000	135,513,000
Assets	1,683,043,000	1,727,134,000	1,683,043,000	1,727,134,000	1,617,155,000
Reconciliation from Segment Totals to Consolidated [Abstract]
Gross profit	66,692,000	55,860,000	170,515,000	135,513,000
Selling, general and administrative expenses	47,386,000	45,527,000	147,731,000	149,477,000
Gain on sales of property and equipment	3,004,000	3,259,000	6,891,000	7,653,000
Other income (expense), net	(2,124,000)	(2,114,000)	(6,323,000)	(8,068,000)
Loss before benefit from income taxes	20,186,000	11,478,000	23,352,000	(14,379,000)
Construction [Member]
Segment Reporting Information [Line Items]
Construction	447,097,000	470,567,000	873,357,000	956,287,000
Large Project Construction [Member]
Segment Reporting Information [Line Items]
Total revenue		185,997,000
Large Project Construction	179,446,000		611,110,000	539,268,000
Construction Materials [Member]
Segment Reporting Information [Line Items]
Total revenue		83,172,000
Construction Materials	93,214,000		200,985,000	173,107,000
Real Estate Segment [Member]
Segment Reporting Information [Line Items]
Real Estate	7,000	16,000	29,000	141,000
Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenue from reportable segments	773,332,000	802,866,000	1,771,165,000	1,778,243,000
Elimination of intersegment revenue	773,332,000	802,866,000	1,771,165,000	1,778,243,000
Gross profit	66,692,000	55,860,000	170,515,000	135,513,000
Depreciation, Depletion and Amortization, Nonproduction	14,806,000	17,767,000	41,133,000	46,073,000
Assets	720,268,000	758,506,000	720,268,000	758,506,000
Reconciliation from Segment Totals to Consolidated [Abstract]
Gross profit	66,692,000	55,860,000	170,515,000	135,513,000
Operating Segments [Member] | Construction [Member]
Segment Reporting Information [Line Items]
Revenue from reportable segments	447,097,000	470,567,000	873,357,000	956,287,000
Elimination of intersegment revenue	447,097,000	470,567,000	873,357,000	956,287,000
Gross profit	48,802,000	50,719,000	82,773,000	87,989,000
Depreciation, Depletion and Amortization, Nonproduction	4,621,000	8,502,000	12,865,000	20,194,000
Assets	150,070,000	155,440,000	150,070,000	155,440,000
Reconciliation from Segment Totals to Consolidated [Abstract]
Gross profit	48,802,000	50,719,000	82,773,000	87,989,000
Operating Segments [Member] | Large Project Construction [Member]
Segment Reporting Information [Line Items]
Revenue from reportable segments	179,446,000	185,997,000	611,110,000	539,268,000
Elimination of intersegment revenue	179,446,000	185,997,000	611,110,000	539,268,000
Gross profit	5,679,000	(2,163,000)	72,264,000	42,129,000
Depreciation, Depletion and Amortization, Nonproduction	4,777,000	3,634,000	12,001,000	8,792,000
Assets	247,694,000	212,644,000	247,694,000	212,644,000
Reconciliation from Segment Totals to Consolidated [Abstract]
Gross profit	5,679,000	(2,163,000)	72,264,000	42,129,000
Operating Segments [Member] | Construction Materials [Member]
Segment Reporting Information [Line Items]
Revenue from reportable segments	146,782,000	146,286,000	286,669,000	282,547,000
Elimination of intersegment revenue	146,782,000	146,286,000	286,669,000	282,547,000
Gross profit	12,204,000	7,288,000	15,449,000	5,268,000
Depreciation, Depletion and Amortization, Nonproduction	5,408,000	5,631,000	16,267,000	17,087,000
Assets	310,731,000	340,172,000	310,731,000	340,172,000
Reconciliation from Segment Totals to Consolidated [Abstract]
Gross profit	12,204,000	7,288,000	15,449,000	5,268,000
Operating Segments [Member] | Real Estate Segment [Member]
Segment Reporting Information [Line Items]
Revenue from reportable segments	7,000	16,000	29,000	141,000
Elimination of intersegment revenue	7,000	16,000	29,000	141,000
Gross profit	7,000	16,000	29,000	127,000
Depreciation, Depletion and Amortization, Nonproduction	0	0	0	0
Assets	11,773,000	50,250,000	11,773,000	50,250,000
Reconciliation from Segment Totals to Consolidated [Abstract]
Gross profit	7,000	16,000	29,000	127,000
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Revenue from reportable segments	(53,568,000)	(63,114,000)	(85,684,000)	(109,440,000)
Elimination of intersegment revenue	(53,568,000)	(63,114,000)	(85,684,000)	(109,440,000)
Intersegment Eliminations [Member] | Construction [Member]
Segment Reporting Information [Line Items]
Revenue from reportable segments	0	0	0	0
Elimination of intersegment revenue	0	0	0	0
Intersegment Eliminations [Member] | Large Project Construction [Member]
Segment Reporting Information [Line Items]
Revenue from reportable segments	0	0	0	0
Elimination of intersegment revenue	0	0	0	0
Intersegment Eliminations [Member] | Construction Materials [Member]
Segment Reporting Information [Line Items]
Revenue from reportable segments	(53,568,000)	(63,114,000)	(85,684,000)	(109,440,000)
Elimination of intersegment revenue	(53,568,000)	(63,114,000)	(85,684,000)	(109,440,000)
Intersegment Eliminations [Member] | Real Estate Segment [Member]
Segment Reporting Information [Line Items]
Revenue from reportable segments	0	0	0	0
Elimination of intersegment revenue	0	0	0	0
Maximum [Member] | Construction [Member]
Segment Reporting Information [Line Items]
Total Contract Value	75,000,000		75,000,000
Minimum [Member] | Large Project Construction [Member]
Segment Reporting Information [Line Items]
Total Contract Value	$ 75,000,000		$ 75,000,000

XML

Revisions in Estimates (Tables)

9 Months Ended

Sep. 30, 2014

Construction [Member]

Change in Accounting Estimate [Line Items]

Schedule of Change in Accounting Estimate

The projects are summarized as follows:

Increases

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in millions)			2014		2013		2014		2013
Number of projects with upward estimate changes			—		4		2		5
Range of increase in gross profit from each project, net		$	—	$	1.3 - 2.7	$	1.1 - 1.2	$	1.1 - 3.0
Increase on project profitability		$	—	$	7.4	$	2.2	$	11.8

Decreases

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in millions)			2014		2013		2014		2013
Number of projects with downward estimate changes			1		3		5		4
Reduction in gross profit from each project, net		$	1.0	$	1.5 - 2.5	$	1.7 - 2.9	$	1.1 - 4.3
Decrease on project profitability		$	1.0	$	5.9	$	11.6	$	11.2

Large Project Construction [Member]

Change in Accounting Estimate [Line Items]

Schedule of Change in Accounting Estimate

Decreases

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in millions)			2014		2013		2014		2013
Number of projects with downward estimate changes			3		4		3		4
Range of reduction in gross profit from each project, net		$	2.0 - 7.0	$	1.4 - 14.7	$	1.3 - 13.9	$	1.6 - 23.5
Decrease on project profitability		$	13.6	$	19.7	$	17.1	$	33.9

The projects are summarized as follows:

Increases

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in millions)			2014		2013		2014		2013
Number of projects with upward estimate changes			2		3		9		6
Range of increase in gross profit from each project, net		$	1.3 - 3.8	$	1.0 - 10.5	$	1.1 - 11.8	$	2.1 - 26.6
Increase on project profitability		$	5.1	$	12.9	$	43.0	$	47.5

XML

Intangible Assets - Indefinite Lived Intangible Assets (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Indefinite-lived Intangible Assets by Major Class [Line Items]
Goodwill	$ 53,799,000	$ 53,799,000	$ 53,799,000
Construction [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Goodwill	29,260,000	29,260,000	28,398,000
Large Project Construction [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Goodwill	22,593,000	22,593,000	23,287,000
Construction Materials [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Goodwill	1,946,000	1,946,000	2,114,000
Other Noncurrent Assets [Member] | Use Rights [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Use rights.	$ 400,000

XML

Fair Value Measurement - Cash and Cash Equivalents (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
Cash Equivalents, at Carrying Value [Abstract]
Cash equivalents	$ 50,148	$ 89,336	$ 113,220
Cash	117,026	139,785	99,243
Total cash and cash equivalents	$ 167,174	$ 229,121	$ 212,463	$ 321,990

XML

Basis of Presentation - Schedule of Reclassifications (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Total revenue	$ 719,764	$ 739,752	$ 1,685,481	$ 1,668,803
Gross Profit	66,692	55,860	170,515	135,513
Selling, general and administrative expenses	47,386	45,527	147,731	149,477
Gain (Loss) on Disposition of Property Plant Equipment			6,891	7,653
Stock-based compensation			8,933	10,645
Operating Income (Loss)	22,310	13,592	29,675	(6,311)
Income (loss) before provision for (benefit from) income taxes	20,186	11,478	23,352	(14,379)
Provision for (benefit from) income taxes	6,081	4,946	8,301	(2,867)
Net income (loss) attributable to Granite Construction Incorporated	15,282	13,037	8,370	(7,526)
Basic (in dollars per share)	$ 0.39	$ 0.34	$ 0.21	$ (0.19)
Diluted (in dollars per share)	$ 0.38	$ 0.33	$ 0.21	$ (0.19)
Total current assets	1,020,829	1,041,304	1,020,829	1,041,304	950,203
Total assets	1,683,043	1,727,134	1,683,043	1,727,134	1,617,155
Total current liabilities	544,167	565,961	544,167	565,961	497,570
Total Granite Construction Incorporated shareholders’ equity	780,804	813,250	780,804	813,250	781,940
Non-controlling interests	26,259	16,265	26,259	16,265	4,404
Total liabilities and equity	1,683,043	1,727,134	1,683,043	1,727,134	1,617,155
Net income (loss)	14,105	6,532	15,051	(11,512)
Depreciation, depletion and amortization			49,968	54,788
Equity in net income from unconsolidated joint ventures			(27,001)	(51,826)
Increase (Decrease) in Accounts and Other Receivables			103,913	99,856
Costs and estimated earnings in excess of billings, net			44,126	16,064
Increase (Decrease) in Inventories			12,131	1,882
Contributions to unconsolidated construction joint ventures			24,797	28,514
Distributions from unconsolidated construction joint ventures			46,991	68,033
Other assets, net			(7,250)	4,820
Accrued expenses and other current liabilities, net			123	20,942
Non-cash Activity, Increase (Decrease) in Performance Guarantees			21,332	24,202
Accounts payable			43,710	3,204
As Reported
Total revenue		741,575		1,670,441
Cost of Revenue		687,179		1,534,791
Gross Profit		54,396		135,650
Selling, general and administrative expenses		47,060		150,675
Gain (Loss) on Disposition of Property Plant Equipment		3,259		(7,653)
Stock-based compensation				10,645
Operating Income (Loss)		10,595		(7,372)
Income (loss) before provision for (benefit from) income taxes		8,481		(15,440)
Provision for (benefit from) income taxes		4,026		(3,235)
Income (Loss) Attributable to Noncontrolling Interest		6,542		3,938
Net income (loss) attributable to Granite Construction Incorporated		10,997		(8,267)
Basic (in dollars per share)		$ 0.28		$ (0.21)
Diluted (in dollars per share)		$ 0.28		$ (0.21)
Total current assets		1,041,672		1,041,672
Noncurrent assets		684,330		684,330
Total assets		1,726,002		1,726,002
Total current liabilities		565,522		565,522
Noncurrent liabilities		331,658		331,658
Total Granite Construction Incorporated shareholders’ equity		812,509		812,509
Non-controlling interests		16,313		16,313
Total liabilities and equity		1,726,002		1,726,002
Net income (loss)		4,455		(12,205)
Depreciation, depletion and amortization				54,788
Restructuring Costs and Asset Impairment Charges				(23)
Equity in net income from unconsolidated joint ventures				0
Increase (Decrease) in Accounts and Other Receivables				(99,856)
Costs and estimated earnings in excess of billings, net				(1,707)
Increase (Decrease) in Inventories				(1,882)
Equity in construction joint ventures				(54,672)
Contributions to unconsolidated construction joint ventures				0
Distributions from unconsolidated construction joint ventures				0
Other assets, net				(5,165)
Increase (Decrease) in Accounts Payable				5,578
Accrued expenses and other current liabilities, net				47,637
Total				(64,515)
Reclassifications
Total revenue		(1,823)		(1,638)
Cost of Revenue		(3,287)		(1,501)
Gross Profit		1,464		(137)
Selling, general and administrative expenses		(1,533)		(1,198)
Gain (Loss) on Disposition of Property Plant Equipment		0		0
Stock-based compensation				0
Operating Income (Loss)		2,997		1,061
Income (loss) before provision for (benefit from) income taxes		2,997		1,061
Provision for (benefit from) income taxes		920		368
Income (Loss) Attributable to Noncontrolling Interest		(37)		48
Net income (loss) attributable to Granite Construction Incorporated		2,040		741
Basic (in dollars per share)		$ 0.06		$ 0.02
Diluted (in dollars per share)		$ 0.05		$ 0.02
Total current assets		(368)		(368)
Noncurrent assets		1,500		1,500
Total assets		1,132		1,132
Total current liabilities		439		439
Noncurrent liabilities		0		0
Total Granite Construction Incorporated shareholders’ equity		741		741
Non-controlling interests		(48)		(48)
Total liabilities and equity		1,132		1,132
Net income (loss)		2,077		693
Depreciation, depletion and amortization				0
Restructuring Costs and Asset Impairment Charges				0
Equity in net income from unconsolidated joint ventures				0
Increase (Decrease) in Accounts and Other Receivables				0
Costs and estimated earnings in excess of billings, net				137
Increase (Decrease) in Inventories				0
Equity in construction joint ventures				0
Contributions to unconsolidated construction joint ventures				0
Distributions from unconsolidated construction joint ventures				0
Other assets, net				368
Increase (Decrease) in Accounts Payable				(1,198)
Accrued expenses and other current liabilities, net				0
Total				0
Adjusted
Total revenue		739,752		1,668,803
Cost of Revenue		683,892		1,533,290
Gross Profit		55,860		135,513
Selling, general and administrative expenses		45,527		149,477
Gain (Loss) on Disposition of Property Plant Equipment		3,259		(7,653)
Stock-based compensation				10,645
Operating Income (Loss)		13,592		(6,311)
Income (loss) before provision for (benefit from) income taxes		11,478		(14,379)
Provision for (benefit from) income taxes		4,946		(2,867)
Income (Loss) Attributable to Noncontrolling Interest		6,505		3,986
Net income (loss) attributable to Granite Construction Incorporated		13,037		(7,526)
Basic (in dollars per share)		$ 0.34		$ (0.19)
Diluted (in dollars per share)		$ 0.33		$ (0.19)
Total current assets		1,041,304		1,041,304
Noncurrent assets		685,830		685,830
Total assets		1,727,134		1,727,134
Total current liabilities		565,961		565,961
Noncurrent liabilities		331,658		331,658
Total Granite Construction Incorporated shareholders’ equity		813,250		813,250
Non-controlling interests		16,265		16,265
Total liabilities and equity		1,727,134		1,727,134
Net income (loss)		6,532		(11,512)
Depreciation, depletion and amortization				54,788
Restructuring Costs and Asset Impairment Charges				0
Equity in net income from unconsolidated joint ventures				(51,826)
Increase (Decrease) in Accounts and Other Receivables				(99,856)
Costs and estimated earnings in excess of billings, net				(16,064)
Increase (Decrease) in Inventories				(1,882)
Equity in construction joint ventures				0
Contributions to unconsolidated construction joint ventures				(28,514)
Distributions from unconsolidated construction joint ventures				68,033
Other assets, net				(4,820)
Increase (Decrease) in Accounts Payable				3,204
Accrued expenses and other current liabilities, net				20,942
Total				(64,515)
Adjustment for Error Correction, Reclassification [Member]
Gain (Loss) on Disposition of Property Plant Equipment				0
Stock-based compensation				0
Net income (loss)				0
Depreciation, depletion and amortization				0
Restructuring Costs and Asset Impairment Charges				23
Equity in net income from unconsolidated joint ventures				(51,826)
Increase (Decrease) in Accounts and Other Receivables				0
Costs and estimated earnings in excess of billings, net				(14,494)
Increase (Decrease) in Inventories				0
Equity in construction joint ventures				54,672
Contributions to unconsolidated construction joint ventures				(28,514)
Distributions from unconsolidated construction joint ventures				68,033
Other assets, net				(23)
Increase (Decrease) in Accounts Payable				(1,176)
Accrued expenses and other current liabilities, net				(26,695)
Total				$ 0

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Covenants and Events of Default (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Debt Instrument [Line Items]
Covenant Compliance	We were in compliance with the covenants contained in our senior note agreements and Credit Agreement.
Line of Credit [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 215.0
Letter of Credit [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 100.0

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Real Estate Entities and Investments in Affiliates - Consolidated Real Estate Entities (Details) (USD $)							3 Months Ended		9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Sep. 30, 2014 Joint Venture Unconsolidated [Member]	Dec. 31, 2013 Joint Venture Unconsolidated [Member]	Sep. 30, 2013 Joint Venture Unconsolidated [Member]	Sep. 30, 2014 Real Estate Segment [Member] Subsidiaries [Member]	Sep. 30, 2013 Real Estate Segment [Member] Subsidiaries [Member]	Sep. 30, 2014 Real Estate Segment [Member] Subsidiaries [Member]	Sep. 30, 2013 Real Estate Segment [Member] Subsidiaries [Member]	Sep. 30, 2014 Real Estate Segment [Member] Joint Venture Consolidated [Member] Real Estate Entities [Member] Variable Interest Entity, Primary Beneficiary [Member]	Dec. 31, 2013 Real Estate Segment [Member] Joint Venture Consolidated [Member] Real Estate Entities [Member] Variable Interest Entity, Primary Beneficiary [Member]	Sep. 30, 2013 Real Estate Segment [Member] Joint Venture Consolidated [Member] Real Estate Entities [Member] Variable Interest Entity, Primary Beneficiary [Member]	Sep. 30, 2014 Real Estate Segment [Member] Joint Venture Consolidated [Member] WASHINGTON Residential real estate [Member] Real Estate Entities [Member] Variable Interest Entity, Primary Beneficiary [Member]	Dec. 31, 2013 Real Estate Segment [Member] Joint Venture Consolidated [Member] WASHINGTON Residential real estate [Member] Real Estate Entities [Member] Variable Interest Entity, Primary Beneficiary [Member]	Sep. 30, 2013 Real Estate Segment [Member] Joint Venture Consolidated [Member] WASHINGTON Residential real estate [Member] Real Estate Entities [Member] Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Other Asset Impairment Charges							$ 0	$ 0	$ 0	$ 0
Equity Method Investment, Summarized Financial Information, Assets				172,220,000	173,988,000	166,601,000
Real estate held for development and sale	11,773,000	12,478,000	50,250,000								11,800,000	12,500,000	50,300,000	11,600,000	11,600,000	40,800,000
Other current assets	21,743,000	30,711,000	32,836,000
Total current assets	1,020,829,000	950,203,000	1,041,304,000
Property and equipment, net	424,272,000	436,859,000	458,024,000
Current maturities of non-recourse debt	1,226,000	1,226,000	2,147,000
Total current liabilities	544,167,000	497,570,000	565,961,000
Long-term non-recourse debt	5,822,000	6,741,000	7,048,000
Other long-term liabilities	45,887,000	48,580,000	46,474,000
Non-Recourse Debt											$ 7,000,000	$ 8,000,000	$ 9,200,000

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Revisions in Estimates

9 Months Ended

Sep. 30, 2014

Change in Accounting Estimate [Abstract]

Revisions in Estimate

Revisions in Estimates

Our profit recognition related to construction contracts is based on estimates of costs to complete each project. These estimates can vary significantly in the normal course of business as projects progress, circumstances develop and evolve, and uncertainties are resolved. We recognize revenue on affirmative claims when we have a signed agreement and recognize revenue associated with unapproved change orders to the extent the related costs have been incurred, the amount can be reliably estimated and recovery is probable. We recognize costs associated with affirmative claims and unapproved change orders as incurred and revisions to estimated total costs as soon as the obligation to perform is determined. Approved change orders and affirmative 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. There can be no assurance that we will not experience further changes in circumstances or otherwise be required to further revise our profitability estimates.

For the majority of our contracts, revenue in an amount equal to cost incurred is recognized until there is sufficient information to determine the estimated profit on the project with a reasonable level of certainty. The gross profit impact from projects that reached initial profit recognition is not included in the tables below. During the three and nine months ended September 30, 2014, the gross profit impact from projects that reached initial profit recognition was $21.4 million and $50.0 million, respectively. During the three and nine months ended September 30, 2013, the gross profit impact from projects that reached initial profit recognition was $13.5 million and $28.8 million, respectively.

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 $1.0 million and $9.4 million for the three and nine months ended September 30, 2014, respectively. The net changes for the three and nine months ended September 30, 2013 were net increases of $1.5 million and $0.6 million, respectively. The projects are summarized as follows:

Increases

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in millions)			2014		2013		2014		2013
Number of projects with upward estimate changes			—		4		2		5
Range of increase in gross profit from each project, net		$	—	$	1.3 - 2.7	$	1.1 - 1.2	$	1.1 - 3.0
Increase on project profitability		$	—	$	7.4	$	2.2	$	11.8

The increases during the three months ended September 30, 2013 and during the nine months ended September 30, 2014 and 2013 were due to owner-directed scope changes and lower costs than originally anticipated.

Decreases

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in millions)			2014		2013		2014		2013
Number of projects with downward estimate changes			1		3		5		4
Reduction in gross profit from each project, net		$	1.0	$	1.5 - 2.5	$	1.7 - 2.9	$	1.1 - 4.3
Decrease on project profitability		$	1.0	$	5.9	$	11.6	$	11.2

The decreases during the three and nine months ended September 30, 2014 and 2013 were due to higher costs than originally anticipated and outstanding claims and change orders.

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 a net decrease of $8.5 million and a net increase of $25.9 million for the three and nine months ended September 30, 2014, respectively. The net changes for the three and nine months ended September 30, 2013 were a net decrease of $6.8 million and a net increase of $13.6 million, respectively. Amounts attributable to non-controlling interests were $1.8 million of the net decrease and $5.8 million of the net increase for the three and nine months ended September 30, 2014, respectively. Amounts attributable to non-controlling interests were $5.9 million of the net decrease for the three months ended September 30, 2013 and $4.3 million of the net increase for the nine months ended September 30, 2013. The projects are summarized as follows:

Increases

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in millions)			2014		2013		2014		2013
Number of projects with upward estimate changes			2		3		9		6
Range of increase in gross profit from each project, net		$	1.3 - 3.8	$	1.0 - 10.5	$	1.1 - 11.8	$	2.1 - 26.6
Increase on project profitability		$	5.1	$	12.9	$	43.0	$	47.5

The increases during the three and nine months ended September 30, 2014 were due to higher productivity than originally anticipated, owner-directed scope changes and settlement of outstanding claims with contract owners. The increases during the three and nine months ended September 30, 2013 were due to production at a higher rate than anticipated and owner-directed scope changes.

Decreases

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in millions)			2014		2013		2014		2013
Number of projects with downward estimate changes			3		4		3		4
Range of reduction in gross profit from each project, net		$	2.0 - 7.0	$	1.4 - 14.7	$	1.3 - 13.9	$	1.6 - 23.5
Decrease on project profitability		$	13.6	$	19.7	$	17.1	$	33.9

The decreases during the three and nine months ended September 30, 2014 and 2013 were due to additional costs, lower productivity than originally anticipated and outstanding claims and change orders.

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Fair Value Measurement - Carrying and Fair Value Amounts (Details) (USD $)																											3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Sep. 30, 2014 Notes Payable to Banks [Member] Institutional Group Two [Member]	Sep. 30, 2014 London Interbank Offered Rate (LIBOR) [Member] Notes Payable to Banks [Member] Institutional Group Two [Member]	Sep. 30, 2014 Fair Value, Measurements, Recurring [Member] Money Market Funds [Member] Fair Value, Inputs, Level 1 [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Money Market Funds [Member] Fair Value, Inputs, Level 1 [Member]	Sep. 30, 2013 Fair Value, Measurements, Recurring [Member] Money Market Funds [Member] Fair Value, Inputs, Level 1 [Member]	Sep. 30, 2014 Fair Value, Measurements, Recurring [Member] Money Market Funds [Member] Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Money Market Funds [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2013 Fair Value, Measurements, Recurring [Member] Money Market Funds [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2014 Fair Value, Measurements, Recurring [Member] Money Market Funds [Member] Estimate of Fair Value, Fair Value Disclosure [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Money Market Funds [Member] Estimate of Fair Value, Fair Value Disclosure [Member]	Sep. 30, 2013 Fair Value, Measurements, Recurring [Member] Money Market Funds [Member] Estimate of Fair Value, Fair Value Disclosure [Member]	Sep. 30, 2014 Estimate of Fair Value, Fair Value Disclosure [Member] Fair Value, Inputs, Level 1 [Member]		Dec. 31, 2013 Estimate of Fair Value, Fair Value Disclosure [Member] Fair Value, Inputs, Level 1 [Member]		Sep. 30, 2013 Estimate of Fair Value, Fair Value Disclosure [Member] Fair Value, Inputs, Level 1 [Member]		Sep. 30, 2014 Estimate of Fair Value, Fair Value Disclosure [Member] Fair Value, Inputs, Level 3 [Member]		Dec. 31, 2013 Estimate of Fair Value, Fair Value Disclosure [Member] Fair Value, Inputs, Level 3 [Member]		Sep. 30, 2013 Estimate of Fair Value, Fair Value Disclosure [Member] Fair Value, Inputs, Level 3 [Member]		Sep. 30, 2014 Swap [Member]	Sep. 30, 2014 Swap [Member]	Sep. 30, 2014 Commodity Contract [Member]	Sep. 30, 2014 Commodity Contract [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents						$ 50,148,000	$ 89,336,000	$ 113,220,000	$ 0	$ 0	$ 0	$ 50,148,000	$ 89,336,000	$ 113,220,000
Derivative, Notional Amount	100,000,000
Held-to-maturity Securities, Fair Value Disclosure current and long-term															101,711,000	[1]	116,915,000	[1]	86,594,000	[1]
Senior Notes	200,000,000	200,000,000	200,000,000
Notes Payable, Fair Value Disclosure																					225,186,000	[2]	225,865,000	[2]	226,110,000	[2]
Line of Credit Facility, Amount Outstanding	70,000,000	70,000,000	70,000,000																		70,258,000	[2]	69,601,000	[2]	70,166,000	[2]
Debt Instrument, Interest Rate, Stated Percentage				6.11%
Derivative, Variable Interest Rate					4.15%
Net gain (loss) on interest rate swap																											$ (600,000)	$ 300,000	$ 600,000	$ 700,000

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

[2] The fair values of the senior notes payable and Credit Agreement (defined in Note 11) 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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Construction and Line Item Joint Ventures (Tables)

9 Months Ended

Sep. 30, 2014

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 consolidated construction joint ventures are included in our condensed consolidated balance sheets as follows:

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Cash and cash equivalents1	$	29,518	$	38,800	$	57,133
Receivables, net	45,483		38,372		47,696
Costs and estimated earnings in excess of billings1	21,105		178		81
Other current assets	1,910		4,600		3,734
Total current assets	98,016		81,950		108,644
Property and equipment, net	16,172		22,216		28,194
Total assets2	$	114,188	$	104,166	$	136,838
Accounts payable	$	22,951	$	16,937	$	20,075
Billings in excess of costs and estimated earnings1	23,138		60,185		70,518
Accrued expenses and other current liabilities	3,110		11,299		12,816
Total liabilities2	$	49,199	$	88,421	$	103,409

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 consolidated 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 a majority of the members 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]

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

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Assets:
Cash and cash equivalents1	$	286,040	$	385,094	$	412,506
Other assets	538,012		523,827		439,655
Less partners’ interest	530,585		612,530		557,857
Granite’s interest	293,467		296,391		294,304
Liabilities:
Accounts payable	141,630		155,985		127,695
Billings in excess of costs and estimated earnings1	178,781		245,341		274,052
Other liabilities	61,061		104,152		68,379
Less partners’ interest	269,264		371,760		336,885
Granite’s interest	112,208		133,718		133,241
Equity in construction joint ventures	$	181,259	$	162,673	$	161,063

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.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2014		2013		2014		2013
Revenue:
Total	$	313,945	$	363,523	$	1,055,276	$	848,082
Less partners’ interest and adjustments1	213,068		259,655		741,451		586,016
Granite’s interest	100,877		103,868		313,825		262,066
Cost of revenue:
Total	338,848		290,112		982,014		661,587
Less partners’ interest and adjustments1	239,661		203,804		696,633		452,784
Granite’s interest	99,187		86,308		285,381		208,803
Granite’s interest in gross profit	$	1,690	$	17,560	$	28,444	$	53,263

¹Partners’ 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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Receivables, Net (Tables)

9 Months Ended

Sep. 30, 2014

Receivables [Abstract]

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

Receivables, net at September 30, 2014, December 31, 2013 and September 30, 2013 are as follows:

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Construction and Large Project Construction contracts:
Completed and in progress	$	274,203	$	193,538	$	275,182
Retentions	79,475		73,103		76,114
Total construction contracts	353,678		266,641		351,296
Construction Material sales	54,718		36,813		55,466
Other	9,740		12,657		18,412
Total gross receivables	418,136		316,111		425,174
Less: allowance for doubtful accounts	508		2,513		2,565
Total net receivables	$	417,628	$	313,598	$	422,609

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)	September 30, 2014		December 31, 2013		September 30, 2013
Escrow	$	26,128	$	25,124	$	23,794
Non-escrow	53,347		47,979		52,320
Total retention receivables	$	79,475	$	73,103	$	76,114

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Legal Proceedings Legal Proceedings (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency Accrual	$ 9,900,000	$ 16,300,000	$ 18,000,000
Loss Contingency, Range of Possible Loss, Minimum	0
Loss Contingency, Range of Possible Loss, Maximum	$ 5,000,000

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Receivables, Net (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	$ 418,136	$ 316,111	$ 425,174
Allowance for Accounts, Notes, Loans and Financing Receivable, Current	508	2,513	2,565
Receivables, net	417,628	313,598	422,609
Construction Contracts [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	353,678	266,641	351,296
Completed and in Progress [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	274,203	193,538	275,182
Retentions [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	79,475	73,103	76,114
Escrow [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	26,128	25,124	23,794
Non Escrow [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	53,347	47,979	52,320
Construction Material Sales [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	54,718	36,813	55,466
Other Business Products and Services [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable, Gross, Current	$ 9,740	$ 12,657	$ 18,412

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Real Estate Entities and Investments in Affiliates (Tables)

9 Months Ended

Sep. 30, 2014

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)	September 30, 2014		December 31, 2013		September 30, 2013
Equity method investments in real estate affiliates	$	24,040	$	21,392	$	20,488
Equity method investments in other affiliates	10,137		11,088		10,850
Total investments in affiliates	$	34,177	$	32,480	$	31,338

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)	September 30, 2014		December 31, 2013		September 30, 2013
Total assets	$	172,220	$	173,988	$	166,601
Net assets	103,651		99,444		95,490
Granite’s share of net assets	34,177		32,480		31,338

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Property and Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2014

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)	September 30, 2014		December 31, 2013		September 30, 2013 As Revised
Equipment and vehicles	$	771,934	$	765,971	$	756,098
Quarry property	169,982		170,442		180,205
Land and land improvements	118,985		119,917		125,606
Buildings and leasehold improvements	83,813		83,494		83,743
Office furniture and equipment	70,837		70,156		69,265
Property and equipment	1,215,551		1,209,980		1,214,917
Less: accumulated depreciation and depletion	791,279		773,121		756,893
Property and equipment, net	$	424,272	$	436,859	$	458,024

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Recent Pronouncements

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the threshold for reporting discontinued operations and adds new disclosures. The new guidance defines a discontinued operation as a disposal of a component or group of components that is disposed of or is classified as held for sale and “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” For disposals of individually significant components that do not qualify as discontinued operations, an entity must disclose pre-tax earnings of the disposed component. This ASU will be effective for all disposals (or classifications as held for sale) of components of an entity that occur during our year ended December 31, 2015 and interim periods within the year. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. This ASU’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. The ASU will be effective commencing with our quarter ending March 31, 2017. We are currently assessing the potential impact of this ASU on our consolidated financial statements.

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Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Indefinite-lived Intangible Assets by Segment [Table Text Block]

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 September 30, 2014, December 31, 2013 and September 30, 2013.

Schedule of Goodwill [Table Text Block]

The following table presents the goodwill balance by reporting segment (in thousands):

	September 30, 2014		December 31, 2013		September 30, 2013
Construction	$	29,260	$	29,260	$	28,398
Large Project Construction	22,593		22,593		23,287
Construction Materials	1,946		1,946		2,114
Total goodwill	$	53,799	$	53,799	$	53,799

Schedule of Finite-Lived Intangible Assets by Major Class

Amortized Intangible Assets

The detail of our amortized intangible assets that are included in other noncurrent assets on our condensed consolidated balance sheets is as follows (in thousands):

			Accumulated
September 30, 2014	Gross Value		Amortization			Net Book Value
Permits	$	29,713	$	(12,835	)	$	16,878
Acquired backlog	7,900		(7,226		)	674
Customer lists	4,398		(2,711		)	1,687
Trade name	4,100		(755		)	3,345
Covenants not to compete and other	2,459		(2,426		)	33
Total amortized intangible assets	$	48,570	$	(25,953	)	$	22,617

			Accumulated
December 31, 2013	Gross Value		Amortization			Net Book Value
Permits	$	29,713	$	(11,992	)	$	17,721
Acquired backlog	7,900		(6,835		)	1,065
Customer lists	4,398		(2,491		)	1,907
Trade name	4,100		(432		)	3,668
Covenants not to compete and other	2,459		(2,408		)	51
Total amortized intangible assets	$	48,570	$	(24,158	)	$	24,412

			Accumulated
September 30, 2013	Gross Value		Amortization			Net Book Value
Permits	$	29,713	$	(11,711	)	$	18,002
Acquired backlog	7,900		(5,147		)	2,753
Customer lists	4,398		(2,418		)	1,980
Trade name	4,100		(324		)	3,776
Covenants not to compete and other	2,459		(2,378		)	81
Total amortized intangible assets	$	48,570	$	(21,978	)	$	26,592

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Marketable Securities - Maturities of Held to Maturity Investments (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014
Marketable Securities [Abstract]
Held-to-maturity investments, maturities due within one year	$ 27,950
Held-to-maturity investments, maturities due in one to five years	74,140
Held-to-maturity investments, total maturities due	$ 102,090

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Weighted Average Shares Outstanding (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Weighted Average Number of Shares Outstanding, Basic [Abstract]
Weighted average common stock outstanding	39,150,000	38,876,000	39,073,000	38,773,000
Weighted average common stock outstanding, basic (in shares)	39,150,000	38,876,000	39,073,000	38,773,000
Effect of dilutive securities:
Stock options and restricted units excluded from calculation	663,000	883,000	717,000	0	[1]
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Weighted average common stock outstanding, basic (in shares)	39,150,000	38,876,000	39,073,000	38,773,000
Effect of dilutive securities:
Stock options and restricted units excluded from calculation	663,000	883,000	717,000	0	[1]
Total weighted average shares outstanding assuming dilution (in shares)	39,813,000	39,759,000	39,790,000	38,773,000
Antidilutive shares excluded from computation of diluted net loss				863,000

[1] Due to the net loss for the nine months ended September 30, 2013, restricted stock units and common stock options representing approximately 863,000 shares have been excluded from the number of shares used in calculating diluted net loss per share, as their inclusion would be antidilutive.

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Current Assets
Cash and cash equivalents ($29,518, $38,800 and $57,133 related to consolidated construction joint ventures (“CCJVs”))	$ 167,174	$ 229,121	$ 212,463
Short-term marketable securities	27,950	49,968	22,892
Receivables, net ($45,483, $38,372 and $47,696 related to CCJVs)	417,628	313,598	422,609
Costs and estimated earnings in excess of billings ($21,105, $178 and $81 related to CCJVs)	62,823	33,306	40,837
Inventories	74,605	62,474	61,667
Real estate held for development and sale	11,773	12,478	50,250
Deferred income taxes	55,874	55,874	36,687
Equity in construction joint ventures	181,259	162,673	161,063
Other current assets	21,743	30,711	32,836
Total current assets	1,020,829	950,203	1,041,304
Property and equipment, net ($16,172, $22,216 and $28,194 related to CCJVs)	424,272	436,859	458,024
Long-term marketable securities	74,140	67,234	64,014
Investments in affiliates	34,177	32,480	31,338
Goodwill	53,799	53,799	53,799
Other noncurrent assets	75,826	76,580	78,655
Total assets	1,683,043	1,617,155	1,727,134
Current liabilities
Current maturities of long-term debt	21	21	20
Current maturities of non-recourse debt	1,226	1,226	2,147
Accounts payable ($22,951, $16,937 and $20,075 related to CCJVs)	205,493	160,706	198,282
Billings in excess of costs and estimated earnings ($23,138, $60,185 and $70,518 related to CCJVs)	115,809	138,375	146,343
Accrued expenses and other current liabilities ($3,110, $11,299 and $12,816 related to CCJVs)	221,618	197,242	219,169
Total current liabilities	544,167	497,570	565,961
Long-term debt	270,127	270,127	270,148
Long-term non-recourse debt	5,822	6,741	7,048
Other long-term liabilities	45,887	48,580	46,474
Deferred income taxes	9,977	7,793	7,988
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 39,152,255 shares as of September 30, 2014, 38,917,728 shares as of December 31, 2013 and 38,878,194 shares as of September 30, 2013	391	389	388
Additional paid-in capital	132,396	126,449	123,681
Retained earnings	648,017	655,102	689,181
Total Granite Construction Incorporated shareholders’ equity	780,804	781,940	813,250
Non-controlling interests	26,259	4,404	16,265
Total equity	807,063	786,344	829,515
Total liabilities and equity	$ 1,683,043	$ 1,617,155	$ 1,727,134

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Construction and Line Item Joint Ventures - Consolidated Construction Joint Ventures (Details) (USD $)	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013		Dec. 31, 2013		Dec. 31, 2012
Construction Joint Venture [Line Items]
Cash and cash equivalents	$ 167,174,000		$ 212,463,000		$ 167,174,000		$ 212,463,000		$ 229,121,000		$ 321,990,000
Other current assets	21,743,000		32,836,000		21,743,000		32,836,000		30,711,000
Total current assets	1,020,829,000		1,041,304,000		1,020,829,000		1,041,304,000		950,203,000
Property and equipment, net	424,272,000		458,024,000		424,272,000		458,024,000		436,859,000
Other noncurrent assets	75,826,000		78,655,000		75,826,000		78,655,000		76,580,000
Total assets	1,683,043,000		1,727,134,000		1,683,043,000		1,727,134,000		1,617,155,000
Accounts payable	205,493,000		198,282,000		205,493,000		198,282,000		160,706,000
Billings in excess of costs and estimated earnings	115,809,000		146,343,000		115,809,000		146,343,000		138,375,000
Accrued expenses and other current liabilities	221,618,000		219,169,000		221,618,000		219,169,000		197,242,000
Total current liabilities	544,167,000		565,961,000		544,167,000		565,961,000		497,570,000
Construction	447,097,000		470,567,000		873,357,000		956,287,000
Net cash used in operating activities					(46,833,000)		(64,515,000)
Partnership Interest [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Revenue Remaining to be Recognized on Unconsolidated Construction Joint Ventures	6,100,000,000				6,100,000,000
Joint Venture Consolidated [Member] | Consolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Cash and cash equivalents	29,518,000	[1]	57,133,000	[1]	29,518,000	[1]	57,133,000	[1]	38,800,000	[1]
Receivables, Net	45,483,000		47,696,000		45,483,000		47,696,000		38,372,000
Costs and estimated earnings in excess of billings	21,105,000	[1]	81,000	[1]	21,105,000	[1]	81,000	[1]	178,000	[1]
Other current assets	1,910,000		3,734,000		1,910,000		3,734,000		4,600,000
Total current assets	98,016,000		108,644,000		98,016,000		108,644,000		81,950,000
Property and equipment, net	16,172,000		28,194,000		16,172,000		28,194,000		22,216,000
Total assets	114,188,000	[2]	136,838,000	[2]	114,188,000	[2]	136,838,000	[2]	104,166,000	[2]
Accounts payable	22,951,000		20,075,000		22,951,000		20,075,000		16,937,000
Billings in excess of costs and estimated earnings	23,138,000	[1]	70,518,000	[1]	23,138,000	[1]	70,518,000	[1]	60,185,000	[1]
Accrued expenses and other current liabilities	3,110,000		12,816,000		3,110,000		12,816,000		11,299,000
Total liabilities	49,199,000	[2]	103,409,000	[2]	49,199,000	[2]	103,409,000	[2]	88,421,000	[2]
Number of Active Joint Venture Projects	3				3
Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Number of Active Joint Venture Projects	11				11
Joint Venture Unconsolidated [Member] | Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Number of Active Joint Venture Projects	4				4
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	1,800,000,000				1,800,000,000
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	4,300,000,000				4,300,000,000
Minimum [Member] | Joint Venture Consolidated [Member] | Consolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	32,400,000				32,400,000
Revenue Remaining to be Recognized on Consolidated Construction Joint Ventures	100,000				100,000
Proportionate Share of the Consolidated Joint Ventures Equity Owned by or Beneficial Interest in the Reporting Entity Directly or Indirectly	55.00%				55.00%
Construction	23,800,000		42,400,000		122,000,000		131,100,000
Net cash used in operating activities					44,700,000		10,400,000
Minimum [Member] | Joint Venture Unconsolidated [Member] | Unconsolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	72,800,000				72,800,000
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	42,600,000				42,600,000
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	28,700,000				28,700,000
Maximum [Member] | Joint Venture Consolidated [Member] | Consolidated Construction Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	364,300,000				364,300,000
Revenue Remaining to be Recognized on Consolidated Construction Joint Ventures	43,900,000				43,900,000
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	86,100,000				86,100,000
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	696,900,000				696,900,000
Maximum [Member] | Reporting Entitys Interest in Joint Venture [Member] | Line Item Joint Venture [Member]
Construction Joint Venture [Line Items]
Construction Contract Value	$ 63,800,000				$ 63,800,000

[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 consolidated 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 a majority of the members 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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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Operating Activities
Net income (loss)	$ 15,051	$ (11,512)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation, depletion and amortization	49,968	54,788
Gain on sales of property and equipment	(6,891)	(7,653)
Stock-based compensation	8,933	10,645
Equity in net income from unconsolidated joint ventures	(27,001)	(51,826)
Changes in assets and liabilities:
Receivables	(103,913)	(99,856)
Costs and estimated earnings in excess of billings, net	(44,126)	(16,064)
Inventories	(12,131)	(1,882)
Contributions to unconsolidated construction joint ventures	(24,797)	(28,514)
Distributions from unconsolidated construction joint ventures	46,991	68,033
Other assets, net	7,250	(4,820)
Accounts payable	43,710	3,204
Accrued expenses and other current liabilities, net	123	20,942
Net cash used in operating activities	(46,833)	(64,515)
Investing Activities
Purchases of marketable securities	(49,975)	(34,957)
Maturities of marketable securities	40,000	57,000
Proceeds from sale of marketable securities	25,000	5,000
Purchases of property and equipment	(37,471)	(30,467)
Proceeds from sales of property and equipment	12,257	18,431
Payment of Kenny post-closing adjustments	0	(8,382)
Other investing activities, net	(1,109)	1,088
Net cash (used in) provided by investing activities	(11,298)	7,713
Financing Activities
Long-term debt principal repayments	(919)	(10,900)
Cash dividends paid	(15,229)	(15,150)
Purchases of common stock	(4,751)	(5,457)
Contributions from non-controlling partners	15,842	6,007
Distributions To Noncontrolling Partners	(686)	(28,015)
Other financing activities	1,927	790
Net cash used in financing activities	(3,816)	(52,725)
Decrease in cash and cash equivalents	(61,947)	(109,527)
Cash and cash equivalents at beginning of period	229,121	321,990
Cash and cash equivalents at end of period	167,174	212,463
Cash paid during the period for:
Interest	6,911	7,940
Income taxes	2,293	2,338
Other non-cash activities:
Performance guarantees	21,332	24,202
Non-cash investing and financing activities:
Restricted stock units issued, net of forfeitures	6,862	13,942
Accrued cash dividends	$ 5,090	$ 5,054

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Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

Summarized segment information for the three and nine months ended September 30, 2014 and 2013 is as follows (in thousands):

	Three Months Ended September 30,
	Construction		Large Project Construction			Construction Materials			Real Estate		Total
2014
Total revenue from reportable segments	$	447,097	$	179,446		$	146,782		$	7	$	773,332
Elimination of intersegment revenue	—		—			(53,568		)	—		(53,568		)
Revenue from external customers	447,097		179,446			93,214			7		719,764
Gross profit	48,802		5,679			12,204			7		66,692
Depreciation, depletion and amortization	4,621		4,777			5,408			—		14,806
2013 As Revised
Total revenue from reportable segments	$	470,567	$	185,997		$	146,286		$	16	$	802,866
Elimination of intersegment revenue	—		—			(63,114		)	—		(63,114		)
Revenue from external customers	470,567		185,997			83,172			16		739,752
Gross profit (loss)	50,719		(2,163		)	7,288			16		55,860
Depreciation, depletion and amortization	8,502		3,634			5,631			—		17,767

	Nine Months Ended September 30,
	Construction		Large Project Construction		Construction Materials			Real Estate		Total
2014
Total revenue from reportable segments	$	873,357	$	611,110	$	286,669		$	29	$	1,771,165
Elimination of intersegment revenue	—		—		(85,684		)	—		(85,684		)
Revenue from external customers	873,357		611,110		200,985			29		1,685,481
Gross profit	82,773		72,264		15,449			29		170,515
Depreciation, depletion and amortization	12,865		12,001		16,267			—		41,133
Segment assets	150,070		247,694		310,731			11,773		720,268
2013 As Revised
Total revenue from reportable segments	$	956,287	$	539,268	$	282,547		$	141	$	1,778,243
Elimination of intersegment revenue	—		—		(109,440		)	—		(109,440		)
Revenue from external customers	956,287		539,268		173,107			141		1,668,803
Gross profit	87,989		42,129		5,268			127		135,513
Depreciation, depletion and amortization	20,194		8,792		17,087			—		46,073
Segment assets	155,440		212,644		340,172			50,250		758,506

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 September 30,						Nine Months Ended September 30,
(in thousands)	2014			2013 As Revised			2014			2013 As Revised
Total gross profit from reportable segments	$	66,692		$	55,860		$	170,515		$	135,513
Selling, general and administrative expenses	47,386			45,527			147,731			149,477
Gain on sales of property and equipment	3,004			3,259			6,891			7,653
Other expense	(2,124		)	(2,114		)	(6,323		)	(8,068		)
Income (loss) before provision for (benefit from) income taxes	$	20,186		$	11,478		$	23,352		$	(14,379	)

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Revisions in Estimates Revisions in Estimates (Policies)

9 Months Ended

Sep. 30, 2014

Revisions in Estimates [Abstract]

Revision in Estimate

Our profit recognition related to construction contracts is based on estimates of costs to complete each project. These estimates can vary significantly in the normal course of business as projects progress, circumstances develop and evolve, and uncertainties are resolved. We recognize revenue on affirmative claims when we have a signed agreement and recognize revenue associated with unapproved change orders to the extent the related costs have been incurred, the amount can be reliably estimated and recovery is probable. We recognize costs associated with affirmative claims and unapproved change orders as incurred and revisions to estimated total costs as soon as the obligation to perform is determined. Approved change orders and affirmative 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. There can be no assurance that we will not experience further changes in circumstances or otherwise be required to further revise our profitability estimates.

For the majority of our contracts, revenue in an amount equal to cost incurred is recognized until there is sufficient information to determine the estimated profit on the project with a reasonable level of certainty.

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Basis of Presentation - Narrative (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Non-cash Activity, Increase (Decrease) in Performance Guarantees	$ 21,332,000	$ 24,202,000
Derivative, Notional Amount	100,000,000
As Reported
Total		(64,515,000)
Reclassifications
Total		0
Adjusted
Total		$ (64,515,000)
Notes Payable to Banks [Member] | Institutional Group Two [Member]
Debt Instrument, Interest Rate, Stated Percentage	6.11%
London Interbank Offered Rate (LIBOR) [Member] | Notes Payable to Banks [Member] | Institutional Group Two [Member]
Derivative, Variable Interest Rate	4.15%

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Basis of Presentation Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Reclassifications

The following tables set forth the impact of the correction of accounting errors and reclassification adjustments on the previously reported condensed consolidated balance sheet as of September 30, 2013 and the condensed consolidated statements of operations and cash flows for the three and nine months ended September 30, 2013 (in thousands):

Condensed Consolidated Balance Sheet

	September 30, 2013
		As Reported		Revisions			Revised
Total current assets		$	1,041,672	$	(368	)	$	1,041,304
Noncurrent assets		684,330		1,500			$	685,830
Total assets		$	1,726,002	$	1,132		$	1,727,134
Total current liabilities		$	565,522	$	439		$	565,961
Noncurrent liabilities		331,658		—			331,658
Total Granite Construction Incorporated shareholders’ equity		812,509		741			813,250
Non-controlling interests		16,313		(48		)	16,265
Total liabilities and equity		$	1,726,002	$	1,132		$	1,727,134

Condensed Consolidated Statements of Operations

	Three Months Ended September 30, 2013
	As Reported		Revisions			Revised
Total revenue	$	741,575	$	(1,823	)	$	739,752
Total cost of revenue	687,179		(3,287		)	683,892
Gross profit	54,396		1,464			55,860
Selling, general and administrative expenses	47,060		(1,533		)	45,527
Gain on sale of property and equipment	3,259		—			3,259
Operating income	10,595		2,997			13,592
Income before provision for income taxes	8,481		2,997			11,478
Provision for income taxes	4,026		920			4,946
Net income	4,455		2,077			6,532
Amount attributable to non-controlling interests	6,542		(37		)	6,505
Net income attributable to Granite Construction Incorporated	$	10,997	$	2,040		$	13,037
Net income per share attributable to common shareholders (see Note 12)
Basic	$	0.28	$	0.06		$	0.34
Diluted	$	0.28	$	0.05		$	0.33

	Nine Months Ended September 30, 2013
		As Reported			Revisions			Revised
Total revenue		$	1,670,441		$	(1,638	)	$	1,668,803
Total cost of revenue		1,534,791			(1,501		)	1,533,290
Gross profit		135,650			(137		)	135,513
Selling, general and administrative expenses		150,675			(1,198		)	149,477
Operating loss		(7,372		)	1,061			(6,311		)
Loss before benefit from income taxes		(15,440		)	1,061			(14,379		)
Benefit from income taxes		(3,235		)	368			(2,867		)
Net loss		(12,205		)	693			(11,512		)
Amount attributable to non-controlling interests		3,938			48			3,986
Net loss attributable to Granite Construction Incorporated		$	(8,267	)	$	741		$	(7,526	)
Net loss per share attributable to common shareholders (see Note 12)
Basic		$	(0.21	)	$	0.02		$	(0.19	)
Diluted		$	(0.21	)	$	0.02		$	(0.19	)

Condensed Consolidated Statement of Cash Flows

	Nine months ended September 30, 2013
	As Reported			Revisions			Reclassifications			Revised
Net loss	$	(12,205	)	$	693		$	—		$	(11,512	)
Depreciation, depletion and amortization	54,788			—			—			54,788
Non-cash restructuring, net	(23		)	—			23			—
Gain on sales of property and equipment	(7,653		)	—			—			(7,653		)
Stock-based compensation	10,645			—			—			10,645
Equity in net income from unconsolidated joint ventures	—			—			(51,826		)	(51,826		)
Receivables	(99,856		)	—			—			(99,856		)
Costs and estimated earnings in excess of billings, net	(1,707		)	137			(14,494		)	(16,064		)
Inventories	(1,882		)	—			—			(1,882		)
Equity in construction joint ventures	(54,672		)	—			54,672			—
Contributions to unconsolidated construction joint ventures	—			—			(28,514		)	(28,514		)
Distributions from unconsolidated construction joint ventures	—			—			68,033			68,033
Other assets, net	(5,165		)	368			(23		)	(4,820		)
Accounts payable	5,578			(1,198		)	(1,176		)	3,204
Accrued expenses and other current liabilities, net	47,637			—			(26,695		)	20,942
Net cash used in operating activities	$	(64,515	)	$	—		$	—		$	(64,515	)

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Basis of Presentation

9 Months Ended

Sep. 30, 2014

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, 2013. 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 September 30, 2014 and 2013 and the results of our operations and cash flows for the periods presented. The December 31, 2013 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. Our operations are typically affected more 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 nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for the full year.

Certain revisions and reclassifications have been made to historical financial data in our condensed consolidated financial statements as follows:

• We have revised our condensed consolidated balance sheet as of September 30, 2013 and our condensed consolidated statements of operations and cash flows for the three and nine months ended September 30, 2013 to correct errors identified during the preparation of our 2013 Annual Report on Form 10-K. For the quarter ended September 30, 2013, the pre-tax adjustments were primarily related to (i) an over-accrual of pre-bid costs which affected selling, general and administrative expenses and accrued and other current liabilities in the amount of $1.4 million and (ii) a revision in equipment-related costs, which affected cost of revenue and property and equipment in the amount of $1.6 million. The Company assessed the materiality of the errors individually and in the aggregate on the prior interim periods’ financial statements in accordance with the SEC’s Staff Accounting Bulletin No. 99 and, based on an analysis of quantitative and qualitative factors, determined that the errors were not material to the Company’s condensed consolidated financial statements for the three and nine months ended September 30, 2013; therefore, these previously issued condensed consolidated financial statements can continue to be relied upon and an amendment of the previously filed Quarterly Report on Form 10-Q is not required. However, for comparability, the Company has revised its condensed consolidated balance sheet as of September 30, 2013 and its condensed consolidated statements of operations and cash flows for the three and nine months ended September 30, 2013 as presented herein to correct these errors.

• Historically, cash flows used in or provided by unconsolidated construction joint ventures were presented as one line item within operating cash flows. To improve transparency in the related balances sheet accounts, we have now presented separately the significant activity. In addition, we reclassified $24.2 million related to performance guarantees for the nine months ended September 30, 2013 out of equity in construction joint ventures and accrued expenses and other current liabilities, net to the non-cash supplemental table of the condensed consolidated statements of cash flows. These changes did not impact total cash used in or provided by operating, investing or financing activities.

The following tables set forth the impact of the correction of accounting errors and reclassification adjustments on the previously reported condensed consolidated balance sheet as of September 30, 2013 and the condensed consolidated statements of operations and cash flows for the three and nine months ended September 30, 2013 (in thousands):

Condensed Consolidated Balance Sheet

	September 30, 2013
		As Reported		Revisions			Revised
Total current assets		$	1,041,672	$	(368	)	$	1,041,304
Noncurrent assets		684,330		1,500			$	685,830
Total assets		$	1,726,002	$	1,132		$	1,727,134
Total current liabilities		$	565,522	$	439		$	565,961
Noncurrent liabilities		331,658		—			331,658
Total Granite Construction Incorporated shareholders’ equity		812,509		741			813,250
Non-controlling interests		16,313		(48		)	16,265
Total liabilities and equity		$	1,726,002	$	1,132		$	1,727,134

Condensed Consolidated Statements of Operations

	Three Months Ended September 30, 2013
	As Reported		Revisions			Revised
Total revenue	$	741,575	$	(1,823	)	$	739,752
Total cost of revenue	687,179		(3,287		)	683,892
Gross profit	54,396		1,464			55,860
Selling, general and administrative expenses	47,060		(1,533		)	45,527
Gain on sale of property and equipment	3,259		—			3,259
Operating income	10,595		2,997			13,592
Income before provision for income taxes	8,481		2,997			11,478
Provision for income taxes	4,026		920			4,946
Net income	4,455		2,077			6,532
Amount attributable to non-controlling interests	6,542		(37		)	6,505
Net income attributable to Granite Construction Incorporated	$	10,997	$	2,040		$	13,037
Net income per share attributable to common shareholders (see Note 12)
Basic	$	0.28	$	0.06		$	0.34
Diluted	$	0.28	$	0.05		$	0.33

	Nine Months Ended September 30, 2013
		As Reported			Revisions			Revised
Total revenue		$	1,670,441		$	(1,638	)	$	1,668,803
Total cost of revenue		1,534,791			(1,501		)	1,533,290
Gross profit		135,650			(137		)	135,513
Selling, general and administrative expenses		150,675			(1,198		)	149,477
Operating loss		(7,372		)	1,061			(6,311		)
Loss before benefit from income taxes		(15,440		)	1,061			(14,379		)
Benefit from income taxes		(3,235		)	368			(2,867		)
Net loss		(12,205		)	693			(11,512		)
Amount attributable to non-controlling interests		3,938			48			3,986
Net loss attributable to Granite Construction Incorporated		$	(8,267	)	$	741		$	(7,526	)
Net loss per share attributable to common shareholders (see Note 12)
Basic		$	(0.21	)	$	0.02		$	(0.19	)
Diluted		$	(0.21	)	$	0.02		$	(0.19	)

Condensed Consolidated Statement of Cash Flows

	Nine months ended September 30, 2013
	As Reported			Revisions			Reclassifications			Revised
Net loss	$	(12,205	)	$	693		$	—		$	(11,512	)
Depreciation, depletion and amortization	54,788			—			—			54,788
Non-cash restructuring, net	(23		)	—			23			—
Gain on sales of property and equipment	(7,653		)	—			—			(7,653		)
Stock-based compensation	10,645			—			—			10,645
Equity in net income from unconsolidated joint ventures	—			—			(51,826		)	(51,826		)
Receivables	(99,856		)	—			—			(99,856		)
Costs and estimated earnings in excess of billings, net	(1,707		)	137			(14,494		)	(16,064		)
Inventories	(1,882		)	—			—			(1,882		)
Equity in construction joint ventures	(54,672		)	—			54,672			—
Contributions to unconsolidated construction joint ventures	—			—			(28,514		)	(28,514		)
Distributions from unconsolidated construction joint ventures	—			—			68,033			68,033
Other assets, net	(5,165		)	368			(23		)	(4,820		)
Accounts payable	5,578			(1,198		)	(1,176		)	3,204
Accrued expenses and other current liabilities, net	47,637			—			(26,695		)	20,942
Net cash used in operating activities	$	(64,515	)	$	—		$	—		$	(64,515	)

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CONSOLIDATED BALANCE SHEETS Consolidated Balance Sheets Parenthetical (Assets and Liabilities) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014		Dec. 31, 2013		Sep. 30, 2013
Cash and cash equivalents	$ 167,174		$ 229,121		$ 212,463
Property and equipment, net	424,272		436,859		458,024
Accounts payable	205,493		160,706		198,282
Billings in excess of costs and estimated earnings	115,809		138,375		146,343
Accrued expenses and other current liabilities	221,618		197,242		219,169
Consolidated Construction Joint Venture [Member] | Joint Venture Consolidated [Member]
Cash and cash equivalents	29,518	[1]	38,800	[1]	57,133	[1]
Receivables, Net	45,483		38,372		47,696
Costs and estimated earnings in excess of billings	21,105	[1]	178	[1]	81	[1]
Property and equipment, net	16,172		22,216		28,194
Accounts payable	22,951		16,937		20,075
Billings in excess of costs and estimated earnings	23,138	[1]	60,185	[1]	70,518	[1]
Accrued expenses and other current liabilities	$ 3,110		$ 11,299		$ 12,816

[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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Covenants and Events of Default

9 Months Ended

Sep. 30, 2014

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 September 30, 2014, we were in compliance with the covenants contained in our note purchase agreement governing our senior notes payable (“2019 NPA”) and the credit agreement governing the $215.0 million committed revolving credit facility, with a sublimit for letters of credit of $100.0 million (“Credit Agreement”), as well as the 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.

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Document and Entity Information Document	9 Months Ended
	Sep. 30, 2014	Oct. 21, 2014
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	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		39,152,547

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Weighted Average Shares Outstanding and Earnings Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Weighted Average Shares Outstanding and Earnings Per Share

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 (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2014	2013	2014	2013
Weighted average shares outstanding:
Weighted average common stock outstanding	39,150	38,876	39,073	38,773
Total basic weighted average shares outstanding	39,150	38,876	39,073	38,773
Diluted weighted average shares outstanding:
Weighted average common stock outstanding, basic	39,150	38,876	39,073	38,773
Effect of dilutive securities:
Common stock options and restricted stock units1	663	883	717	—
Total weighted average shares outstanding assuming dilution	39,813	39,759	39,790	38,773

¹Due to the net loss for the nine months ended September 30, 2013, restricted stock units and common stock options representing approximately 863,000 shares have been excluded from the number of shares used in calculating diluted net loss per share, as their inclusion would be antidilutive.

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. During the three and nine months ended September 30, 2014 and 2013, there were no participating securities; therefore, net income was not allocated to participating securities. Following is a calculation of basic and diluted EPS (in thousands, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013 As Revised		2014		2013 As Revised
Basic
Numerator:
Net income (loss) allocated to common shareholders for basic calculation	$	15,282	$	13,037	$	8,370	$	(7,526	)
Denominator:
Weighted average common shares outstanding, basic	39,150		38,876		39,073		38,773
Net income (loss) per share, basic	$	0.39	$	0.34	$	0.21	$	(0.19	)
Diluted
Numerator:
Net income (loss) allocated to common shareholders for diluted calculation	$	15,282	$	13,037	$	8,370	$	(7,526	)
Denominator:
Weighted average common shares outstanding, diluted	39,813		39,759		39,790		38,773
Net income (loss) per share, diluted	$	0.38	$	0.33	$	0.21	$	(0.19	)

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CONSOLIDATED BALANCE SHEETS Consolidated Balance Sheets Parenthetical (Equity) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
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	39,152,255	38,917,728	38,878,194
Common Stock, Shares, Outstanding	39,152,255	38,917,728	38,878,194

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Receivables, Net

9 Months Ended

Sep. 30, 2014

Receivables [Abstract]

Receivables, Net

Receivables, net

Receivables, net at September 30, 2014, December 31, 2013 and September 30, 2013 are as follows:

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Construction and Large Project Construction contracts:
Completed and in progress	$	274,203	$	193,538	$	275,182
Retentions	79,475		73,103		76,114
Total construction contracts	353,678		266,641		351,296
Construction Material sales	54,718		36,813		55,466
Other	9,740		12,657		18,412
Total gross receivables	418,136		316,111		425,174
Less: allowance for doubtful accounts	508		2,513		2,565
Total net receivables	$	417,628	$	313,598	$	422,609

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, based on the passage of time, achievement of milestones or upon completion of the project and, to the extent not collected, are included in receivables. 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. Included in other receivables at September 30, 2014, December 31, 2013 and September 30, 2013 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.

Financed receivables consisted of long-term notes receivable and retentions receivable. Long-term notes receivable were not material at any of the presented dates. No retention receivable individually exceeded 10% of total net receivables at any of the presented dates. As of September 30, 2014, the majority of the retentions receivable is expected to be collected within one year.

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

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Escrow	$	26,128	$	25,124	$	23,794
Non-escrow	53,347		47,979		52,320
Total retention receivables	$	79,475	$	73,103	$	76,114

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.

As of September 30, 2014, the non-escrow retention receivables aged over 90 days have not materially changed since December 31, 2013. In addition, our allowance for doubtful accounts contained no material provision related to non-escrow retention receivables as we determined there were no significant collectability issues at any of the presented dates.

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Fair Value Measurement

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

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 significant assets and liabilities measured at fair value in the condensed consolidated balance sheets on a recurring basis for each of the fair value levels (in thousands):

	Fair Value Measurement at Reporting Date Using
September 30, 2014	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	50,148	$	—	$	—	$	50,148
Total assets	$	50,148	$	—	$	—	$	50,148

	Fair Value Measurement at Reporting Date Using
December 31, 2013	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	89,336	$	—	$	—	$	89,336
Total assets	$	89,336	$	—	$	—	$	89,336

	Fair Value Measurement at Reporting Date Using
September 30, 2013	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	113,220	$	—	$	—	$	113,220
Total assets	$	113,220	$	—	$	—	$	113,220

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

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Cash equivalents	$	50,148	$	89,336	$	113,220
Cash	117,026		139,785		99,243
Total cash and cash equivalents	$	167,174	$	229,121	$	212,463

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

		September 30, 2014				December 31, 2013				September 30, 2013
(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	$	102,090	$	101,711	$	117,202	$	116,915	$	86,906	$	86,594
Liabilities (including current maturities):
Senior notes payable2	Level 3	$	200,000	$	225,186	$	200,000	$	225,865	$	200,000	$	226,110
Credit Agreement loan2	Level 3	70,000		70,258		70,000		69,601		70,000		70,166

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

²The fair values of the senior notes payable and Credit Agreement (defined in Note 11) 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 nine months ended September 30, 2014 and 2013, we did not record any fair value adjustments related to nonfinancial assets and liabilities measured at fair value on a nonrecurring basis.

In March 2014, we entered into an interest rate swap with a notional amount of $100.0 million which matures in June 2018 to convert the interest rate of our 2019 Notes (defined in Note 11) from a fixed rate of 6.11% to a floating rate of 4.15% plus six-month LIBOR. The interest rate swap is reported at fair value using Level 2 inputs, and gains or losses are recorded in other income (expense), net in our condensed consolidated statement of operations and were losses of $0.6 million and gains of $0.3 million during the three and nine months ended September 30, 2014, respectively.

In March 2014, we entered into two diesel commodity swaps covering May to October, 2014 and 2015 which represented roughly 25% of our forecasted purchase for diesel.  In May 2014, we entered into two natural gas commodity swaps covering June to October 2014 and May to October 2015 representing roughly 25% of our forecasted purchase of natural gas.  The commodity swaps are reported at fair value using Level 2 inputs, and gains or losses are recorded in other income (expense), net in our condensed consolidated statement of operations and were losses of $0.6 million and $0.7 million during the three and nine months ended September 30, 2014, respectively.

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

9 Months Ended

Sep. 30, 2014

Real Estate Entities and Investments in Affiliates [Abstract]

Real Estate Held for Development and Sale, Policy [Policy Text Block]

All of the assets of these real estate entities in which we are a participant 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).

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

Generally, each construction joint venture is formed to complete a specific contract and is jointly controlled by the venture partners. The associated 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 venture. 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.

We continually evaluate whether there are changes in the status of the VIEs or changes to the primary beneficiary designation of the VIE.

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. 

We have determined that certain of these entities are consolidated because they are VIEs and we are the primary beneficiary. We continually evaluate whether there are changes in the status of the VIEs or changes to the primary beneficiary designation of the VIE.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

To determine if impairment charges should be recognized, the carrying amount of each real estate development project is reviewed on a quarterly basis.

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Equity

9 Months Ended

Sep. 30, 2014

Stockholders' Equity Note [Abstract]

Equity

Equity

The following tables summarize our equity activity for the periods presented (in thousands):

	Granite Construction Incorporated			Non-controlling Interests		Total Equity
Balance at December 31, 2013	$	781,940		$	4,404	$	786,344
Purchase of common stock1	(4,751		)	—		(4,751		)
Other transactions with shareholders and employees3	10,505			—		10,505
Transactions with non-controlling interests, net	—			15,174		15,174
Net income	8,370			6,681		15,051
Dividends on common stock	(15,260		)	—		(15,260		)
Balance at September 30, 2014	$	780,804		$	26,259	$	807,063

Balance at December 31, 2012	$	829,953		$	41,905		$	871,858
Purchase of common stock2	(5,457		)	—			(5,457		)
Other transactions with shareholders and employees3	11,430			—			11,430
Transactions with non-controlling interests, net	—			(21,654		)	(21,654		)
Net loss	(7,526		)	(3,986		)	(11,512		)
Dividends on common stock	(15,150		)	—			(15,150		)
Balance at September 30, 2013 As Revised	$	813,250		$	16,265		$	829,515

¹Represents 123,000 shares purchased in connection with employee tax withholding for shares/units vested under our Amended and Restated 1999 Equity Incentive Plan.

²Represents 181,000 shares purchased in connection with employee tax withholding for shares/units vested under our Amended and Restated 1999 Equity Incentive Plan.

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

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Property and Equipment, Net

9 Months Ended

Sep. 30, 2014

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)	September 30, 2014		December 31, 2013		September 30, 2013 As Revised
Equipment and vehicles	$	771,934	$	765,971	$	756,098
Quarry property	169,982		170,442		180,205
Land and land improvements	118,985		119,917		125,606
Buildings and leasehold improvements	83,813		83,494		83,743
Office furniture and equipment	70,837		70,156		69,265
Property and equipment	1,215,551		1,209,980		1,214,917
Less: accumulated depreciation and depletion	791,279		773,121		756,893
Property and equipment, net	$	424,272	$	436,859	$	458,024

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Construction and Line Item Joint Ventures

9 Months Ended

Sep. 30, 2014

Construction and Line Item Joint Ventures [Abstract]

Construction and Line Item Joint Ventures

Construction and Line Item Joint Ventures

We participate in various construction joint ventures, partnerships and a limited liability company of which we are a limited member (“joint ventures”). We also participate in various “line item” joint venture agreements under which each member is responsible for performing certain discrete items of the total scope of contracted work.

Due to the joint and several nature of the performance obligations under the related owner contracts, if one of the members fails to perform, we and the remaining members would be responsible for performance of the outstanding work. At September 30, 2014, there was approximately $6.1 billion of construction revenue to be recognized on unconsolidated and line item construction joint venture contracts of which $1.8 billion represented our share and the remaining $4.3 billion represented our members’ 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 venture partners. The associated 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 venture. 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.

We continually evaluate whether there are changes in the status of the VIEs or changes to the primary beneficiary designation of the VIE. Based on our assessments during the nine months ended September 30, 2014, we determined no change was required for existing construction joint ventures.

Consolidated Construction Joint Ventures

The carrying amounts and classification of assets and liabilities of consolidated construction joint ventures are included in our condensed consolidated balance sheets as follows:

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Cash and cash equivalents1	$	29,518	$	38,800	$	57,133
Receivables, net	45,483		38,372		47,696
Costs and estimated earnings in excess of billings1	21,105		178		81
Other current assets	1,910		4,600		3,734
Total current assets	98,016		81,950		108,644
Property and equipment, net	16,172		22,216		28,194
Total assets2	$	114,188	$	104,166	$	136,838
Accounts payable	$	22,951	$	16,937	$	20,075
Billings in excess of costs and estimated earnings1	23,138		60,185		70,518
Accrued expenses and other current liabilities	3,110		11,299		12,816
Total liabilities2	$	49,199	$	88,421	$	103,409

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 consolidated 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 a majority of the members and, accordingly, these cash and cash equivalents and assets generally are not available for the working capital needs of Granite until distributed.

At September 30, 2014, we were engaged in three active consolidated construction joint venture projects with total contract values ranging from $32.4 million to $364.3 million. Our share of revenue remaining to be recognized on these consolidated joint ventures ranged from $0.1 million to $43.9 million. Our proportionate share of the equity in these joint ventures was between 55.0% and 65.0%. During the three and nine months ended September 30, 2014, total revenue from consolidated construction joint ventures was $23.8 million and $122.0 million, respectively. During the three and nine months ended September 30, 2013, total revenue from consolidated construction joint ventures was $42.4 million and $131.1 million, respectively. Total cash used in consolidated construction joint venture operations was $44.7 million and $10.4 million during the nine months ended September 30, 2014 and 2013, 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 September 30, 2014, these unconsolidated joint ventures were engaged in eleven active unconsolidated construction joint ventures with total contract values ranging from $72.8 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 September 30, 2014, our share of the revenue remaining to be recognized on these unconsolidated joint ventures ranged from $0.3 million to $696.9 million.

As of September 30, 2014, 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, and the average rate in effect during the reporting period for the results of operations. The associated foreign currency translation adjustments did not have a material impact on the condensed consolidated financial statements for any of the dates or periods presented.

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

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Assets:
Cash and cash equivalents1	$	286,040	$	385,094	$	412,506
Other assets	538,012		523,827		439,655
Less partners’ interest	530,585		612,530		557,857
Granite’s interest	293,467		296,391		294,304
Liabilities:
Accounts payable	141,630		155,985		127,695
Billings in excess of costs and estimated earnings1	178,781		245,341		274,052
Other liabilities	61,061		104,152		68,379
Less partners’ interest	269,264		371,760		336,885
Granite’s interest	112,208		133,718		133,241
Equity in construction joint ventures	$	181,259	$	162,673	$	161,063

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.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2014		2013		2014		2013
Revenue:
Total	$	313,945	$	363,523	$	1,055,276	$	848,082
Less partners’ interest and adjustments1	213,068		259,655		741,451		586,016
Granite’s interest	100,877		103,868		313,825		262,066
Cost of revenue:
Total	338,848		290,112		982,014		661,587
Less partners’ interest and adjustments1	239,661		203,804		696,633		452,784
Granite’s interest	99,187		86,308		285,381		208,803
Granite’s interest in gross profit	$	1,690	$	17,560	$	28,444	$	53,263

¹Partners’ 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.

During the three and nine months ended September 30, 2014, unconsolidated construction joint venture net loss (net of adjustments) was $25.2 million and net income (net of adjustments) was $75.2 million, respectively, of which our share was net income (net of adjustments) of $1.8 million and $28.1 million, respectively. During the three and nine months ended September 30, 2013, the net income (net of adjustments) of unconsolidated construction joint ventures was $71.1 million and $182.8 million, respectively, of which our share was $21.3 million and $53.2 million, respectively.

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 September 30, 2014, we had four active line item joint venture construction projects with total contract values ranging from $42.6 million to $86.1 million of which our portion ranged from $28.7 million to $63.8 million. As of September 30, 2014, our share of revenue remaining to be recognized on these line item joint ventures ranged from less than $0.1 million to $27.6 million.

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Real Estate Entities and Investments in Affiliates

9 Months Ended

Sep. 30, 2014

Real Estate Entities and Investments in Affiliates [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. 

We have determined that certain of these entities are consolidated because they are VIEs and we are the primary beneficiary. We continually evaluate whether there are changes in the status of the VIEs or changes to the primary beneficiary designation of the VIE. Based on our assessments during the nine months ended September 30, 2014 and 2013, we determined no change was required for existing real estate entities.

Our real estate entities 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. The amount of GLC’s exposure is limited to GLC’s equity investment in the real estate joint venture. However, if one of GLC’s partners is unable to fulfill its management role or make its required financial contribution, GLC may assume, at its option, full management and/or financial responsibility for the project.

All of the assets of these real estate entities in which we are a participant 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).

To determine if impairment charges should be recognized, the carrying amount of each 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 nine months ended September 30, 2014 and 2013.

During 2013, we concluded the majority of our 2010 Enterprise Improvement Plan (“EIP”) which included the impairment and planned orderly divestiture of our real estate investment business consistent with our strategy to focus on our core business. Consequently, during 2013 we recorded impairment charges on certain real estate assets in accordance with our EIP. When real estate assets which we continue to have a financial interest are sold, we may recognize additional restructuring charges or gains; however, we do not expect these charges or gains to be material to our consolidated financial statements. No restructuring charges were recorded during the three and nine months ended September 30, 2014 and an immaterial restructuring gain was recorded during the three and nine months ended September 30, 2013.

Consolidated Real Estate Entities

As of September 30, 2014, December 31, 2013 and September 30, 2013, real estate held for development and sale associated with consolidated real estate entities included in our condensed consolidated balance sheets was $11.8 million, $12.5 million and $50.3 million, respectively. Non-recourse debt, including current maturities, associated with these entities was $7.0 million, $8.0 million and $9.2 million as of September 30, 2014, December 31, 2013 and September 30, 2013, respectively. All other amounts associated with these entities were insignificant as of the dates presented. Residential real estate held for development and sale in Washington State was $11.6 million as of both September 30, 2014 and December 31, 2013, and was $40.8 million as of September 30, 2013. The remaining balances were in various commercial projects in California and Texas. During 2014, we sold or otherwise disposed of three consolidated real estate entities in connection with our 2010 Enterprise Improvement Plan. The associated gain was not material.

Investments in Affiliates

We have determined that certain real estate entities 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 are 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.

Our investments in affiliates balance consists of the following:

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Equity method investments in real estate affiliates	$	24,040	$	21,392	$	20,488
Equity method investments in other affiliates	10,137		11,088		10,850
Total investments in affiliates	$	34,177	$	32,480	$	31,338

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

(in thousands)	September 30, 2014		December 31, 2013		September 30, 2013
Total assets	$	172,220	$	173,988	$	166,601
Net assets	103,651		99,444		95,490
Granite’s share of net assets	34,177		32,480		31,338

The equity method investments in real estate included $17.8 million, $14.9 million and $14.0 million in residential real estate in Texas as of September 30, 2014, December 31, 2013 and September 30, 2013, respectively. The remaining balances were in commercial real estate in Texas. Of the $172.2 million in total assets as of September 30, 2014, real estate entities had total assets ranging from $1.9 million to $57.0 million and non-real estate entities had total assets ranging from $0.3 million to $22.5 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.

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Intangible Assets

9 Months Ended

Sep. 30, 2014

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 September 30, 2014, December 31, 2013 and September 30, 2013.

The following table presents the goodwill balance by reporting segment (in thousands):

	September 30, 2014		December 31, 2013		September 30, 2013
Construction	$	29,260	$	29,260	$	28,398
Large Project Construction	22,593		22,593		23,287
Construction Materials	1,946		1,946		2,114
Total goodwill	$	53,799	$	53,799	$	53,799

Amortized Intangible Assets

The detail of our amortized intangible assets that are included in other noncurrent assets on our condensed consolidated balance sheets is as follows (in thousands):

			Accumulated
September 30, 2014	Gross Value		Amortization			Net Book Value
Permits	$	29,713	$	(12,835	)	$	16,878
Acquired backlog	7,900		(7,226		)	674
Customer lists	4,398		(2,711		)	1,687
Trade name	4,100		(755		)	3,345
Covenants not to compete and other	2,459		(2,426		)	33
Total amortized intangible assets	$	48,570	$	(25,953	)	$	22,617

			Accumulated
December 31, 2013	Gross Value		Amortization			Net Book Value
Permits	$	29,713	$	(11,992	)	$	17,721
Acquired backlog	7,900		(6,835		)	1,065
Customer lists	4,398		(2,491		)	1,907
Trade name	4,100		(432		)	3,668
Covenants not to compete and other	2,459		(2,408		)	51
Total amortized intangible assets	$	48,570	$	(24,158	)	$	24,412

			Accumulated
September 30, 2013	Gross Value		Amortization			Net Book Value
Permits	$	29,713	$	(11,711	)	$	18,002
Acquired backlog	7,900		(5,147		)	2,753
Customer lists	4,398		(2,418		)	1,980
Trade name	4,100		(324		)	3,776
Covenants not to compete and other	2,459		(2,378		)	81
Total amortized intangible assets	$	48,570	$	(21,978	)	$	26,592

Amortization expense related to amortized intangible assets for the three and nine months ended September 30, 2014 was $0.6 million and $1.8 million respectively. Amortization expense related to amortized intangible assets for the three and nine months ended September 30, 2013 was $2.2 million and $6.7 million, respectively. Based on the amortized assets balance at September 30, 2014, amortization expense expected to be recorded in the future is as follows: $0.9 million for the remainder of 2014; $2.1 million in 2015; $1.8 million in 2016; $1.7 million in 2017; $1.7 million in 2018; and $14.4 million thereafter.

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Equity (Tables)

9 Months Ended

Sep. 30, 2014

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity

The following tables summarize our equity activity for the periods presented (in thousands):

	Granite Construction Incorporated			Non-controlling Interests		Total Equity
Balance at December 31, 2013	$	781,940		$	4,404	$	786,344
Purchase of common stock1	(4,751		)	—		(4,751		)
Other transactions with shareholders and employees3	10,505			—		10,505
Transactions with non-controlling interests, net	—			15,174		15,174
Net income	8,370			6,681		15,051
Dividends on common stock	(15,260		)	—		(15,260		)
Balance at September 30, 2014	$	780,804		$	26,259	$	807,063

Balance at December 31, 2012	$	829,953		$	41,905		$	871,858
Purchase of common stock2	(5,457		)	—			(5,457		)
Other transactions with shareholders and employees3	11,430			—			11,430
Transactions with non-controlling interests, net	—			(21,654		)	(21,654		)
Net loss	(7,526		)	(3,986		)	(11,512		)
Dividends on common stock	(15,150		)	—			(15,150		)
Balance at September 30, 2013 As Revised	$	813,250		$	16,265		$	829,515

¹Represents 123,000 shares purchased in connection with employee tax withholding for shares/units vested under our Amended and Restated 1999 Equity Incentive Plan.

²Represents 181,000 shares purchased in connection with employee tax withholding for shares/units vested under our Amended and Restated 1999 Equity Incentive Plan.

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

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Intangible Assets - Finite Lived Intangible Assets (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Total amortized intangible assets, Gross Value	$ 48,570,000	$ 48,570,000	$ 48,570,000	$ 48,570,000	$ 48,570,000
Total amortized intangible assets, Accumulated Amortization	(25,953,000)	(21,978,000)	(25,953,000)	(21,978,000)	(24,158,000)
Total amortized intangible assets, Net Value	(22,617,000)	(26,592,000)	(22,617,000)	(26,592,000)	(24,412,000)
Amortization expense	600,000	2,200,000	1,800,000	6,700,000
Future amortization expense, Remainder of Fiscal Year	900,000		900,000
Future amortization expense, Year One	2,100,000		2,100,000
Future amortization expense, Year Two	1,800,000		1,800,000
Future amortization expense, Year Three	1,700,000		1,700,000
Future amortization expense, Year Four	1,700,000		1,700,000
Future amortization expense, after Year Four	14,400,000		14,400,000
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	(12,835,000)	(11,711,000)	(12,835,000)	(11,711,000)	(11,992,000)
Total amortized intangible assets, Net Value	(16,878,000)	(18,002,000)	(16,878,000)	(18,002,000)	(17,721,000)
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortized intangible assets, Gross Value	4,398,000	4,398,000	4,398,000	4,398,000	4,398,000
Total amortized intangible assets, Accumulated Amortization	(2,711,000)	(2,418,000)	(2,711,000)	(2,418,000)	(2,491,000)
Total amortized intangible assets, Net Value	(1,687,000)	1,980,000	(1,687,000)	1,980,000	(1,907,000)
Covenants not to compete [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortized intangible assets, Gross Value	2,459,000	2,459,000	2,459,000	2,459,000	2,459,000
Total amortized intangible assets, Accumulated Amortization	(2,426,000)	(2,378,000)	(2,426,000)	(2,378,000)	(2,408,000)
Total amortized intangible assets, Net Value	(33,000)	(81,000)	(33,000)	(81,000)	(51,000)
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	7,900,000	7,900,000
Total amortized intangible assets, Accumulated Amortization	(7,226,000)	(5,147,000)	(7,226,000)	(5,147,000)	(6,835,000)
Total amortized intangible assets, Net Value	674,000	2,753,000	674,000	2,753,000	1,065,000
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortized intangible assets, Gross Value	4,100,000	4,100,000	4,100,000	4,100,000	4,100,000
Total amortized intangible assets, Accumulated Amortization	(755,000)	(324,000)	(755,000)	(324,000)	(432,000)
Total amortized intangible assets, Net Value	$ 3,345,000	$ 3,776,000	$ 3,345,000	$ 3,776,000	$ 3,668,000

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Business Segment Information

9 Months Ended

Sep. 30, 2014

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, underground, power related facilities, utilities 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 a longer duration than our Construction segment work. These projects include major highways, mass transit facilities, bridges, tunnels, waterway locks and dams, pipelines, canals, power related facilities, utilities and airport infrastructure. This segment primarily includes bid-build, design-build, construction management/general contractor contracts, and various contract methods relating to public, private partnerships, 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 and California.

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies contained in our 2013 Annual Report on Form 10-K. We evaluate segment performance based on gross profit or loss, and do not include selling, general and administrative expenses nor 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 for the three and nine months ended September 30, 2014 and 2013 is as follows (in thousands):

	Three Months Ended September 30,
	Construction		Large Project Construction			Construction Materials			Real Estate		Total
2014
Total revenue from reportable segments	$	447,097	$	179,446		$	146,782		$	7	$	773,332
Elimination of intersegment revenue	—		—			(53,568		)	—		(53,568		)
Revenue from external customers	447,097		179,446			93,214			7		719,764
Gross profit	48,802		5,679			12,204			7		66,692
Depreciation, depletion and amortization	4,621		4,777			5,408			—		14,806
2013 As Revised
Total revenue from reportable segments	$	470,567	$	185,997		$	146,286		$	16	$	802,866
Elimination of intersegment revenue	—		—			(63,114		)	—		(63,114		)
Revenue from external customers	470,567		185,997			83,172			16		739,752
Gross profit (loss)	50,719		(2,163		)	7,288			16		55,860
Depreciation, depletion and amortization	8,502		3,634			5,631			—		17,767

	Nine Months Ended September 30,
	Construction		Large Project Construction		Construction Materials			Real Estate		Total
2014
Total revenue from reportable segments	$	873,357	$	611,110	$	286,669		$	29	$	1,771,165
Elimination of intersegment revenue	—		—		(85,684		)	—		(85,684		)
Revenue from external customers	873,357		611,110		200,985			29		1,685,481
Gross profit	82,773		72,264		15,449			29		170,515
Depreciation, depletion and amortization	12,865		12,001		16,267			—		41,133
Segment assets	150,070		247,694		310,731			11,773		720,268
2013 As Revised
Total revenue from reportable segments	$	956,287	$	539,268	$	282,547		$	141	$	1,778,243
Elimination of intersegment revenue	—		—		(109,440		)	—		(109,440		)
Revenue from external customers	956,287		539,268		173,107			141		1,668,803
Gross profit	87,989		42,129		5,268			127		135,513
Depreciation, depletion and amortization	20,194		8,792		17,087			—		46,073
Segment assets	155,440		212,644		340,172			50,250		758,506

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

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2014			2013 As Revised			2014			2013 As Revised
Total gross profit from reportable segments	$	66,692		$	55,860		$	170,515		$	135,513
Selling, general and administrative expenses	47,386			45,527			147,731			149,477
Gain on sales of property and equipment	3,004			3,259			6,891			7,653
Other expense	(2,124		)	(2,114		)	(6,323		)	(8,068		)
Income (loss) before provision for (benefit from) income taxes	$	20,186		$	11,478		$	23,352		$	(14,379	)

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Marketable Securities (Tables)

9 Months Ended

Sep. 30, 2014

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)	September 30, 2014		December 31, 2013		September 30, 2013
U.S. Government and agency obligations	$	12,967	$	10,000	$	1,260
Commercial paper	14,983		39,968		19,982
Municipal bonds	—		—		1,650
Total short-term marketable securities	27,950		49,968		22,892
U.S. Government and agency obligations	74,140		67,234		64,014
Total long-term marketable securities	74,140		67,234		64,014
Total marketable securities	$	102,090	$	117,202	$	86,906

Held-to-maturity Securities

Scheduled maturities of held-to-maturity investments were as follows:

(in thousands)	September 30, 2014
Due within one year	$	27,950
Due in one to five years	74,140
Total	$	102,090

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Property and Equipment, Net (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Property, Plant and Equipment [Line Items]
Property and equipment	$ 1,215,551	$ 1,209,980	$ 1,214,917
Accumulated depreciation and depletion	791,279	773,121	756,893
Property and equipment, net	424,272	436,859	458,024
Equipment and vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	771,934	765,971	756,098
Quarry property [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	169,982	170,442	180,205
Land and land improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	118,985	119,917	125,606
Building and leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	83,813	83,494	83,743
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	$ 70,837	$ 70,156	$ 69,265

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Fair Value Measurement - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Liabilities, Fair Value Disclosure [Abstract]
Line of Credit Facility, Amount Outstanding	$ 70,000	$ 70,000	$ 70,000
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Assets, Fair Value Disclosure	50,148	89,336	113,220
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Assets, Fair Value Disclosure	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
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Assets, Fair Value Disclosure [Abstract]
Assets, Fair Value Disclosure	50,148	89,336	113,220
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Cash equivalents	50,148	89,336	113,220
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
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
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Assets, Fair Value Disclosure [Abstract]
Cash equivalents	$ 50,148	$ 89,336	$ 113,220

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenue
Construction	$ 447,097	$ 470,567	$ 873,357	$ 956,287
Large Project Construction	179,446	185,997	611,110	539,268
Construction Materials	93,214	83,172	200,985	173,107
Real Estate	7	16	29	141
Total revenue	719,764	739,752	1,685,481	1,668,803
Cost of revenue
Construction	398,295	419,848	790,584	868,298
Large Project Construction	173,767	188,160	538,846	497,139
Construction Materials	81,010	75,884	185,536	167,839
Real Estate	0	0	0	14
Total cost of revenue	653,072	683,892	1,514,966	1,533,290
Gross profit	66,692	55,860	170,515	135,513
Selling, general and administrative expenses	47,386	45,527	147,731	149,477
Gain on sales of property and equipment	3,004	3,259	6,891	7,653
Operating income (loss)	22,310	13,592	29,675	(6,311)
Other income (expense)
Interest income	451	602	1,343	1,110
Interest expense	(2,488)	(3,736)	(10,426)	(11,081)
Equity in income of affiliates	1,109	(2)	2,310	273
Other (expense) income, net	(1,196)	1,022	450	1,630
Total other expense	(2,124)	(2,114)	(6,323)	(8,068)
Income (loss) before provision for (benefit from) income taxes	20,186	11,478	23,352	(14,379)
Provision for (benefit from) income taxes	6,081	4,946	8,301	(2,867)
Net income (loss)	14,105	6,532	15,051	(11,512)
Amount attributable to non-controlling interests	1,177	6,505	(6,681)	3,986
Net income (loss) attributable to Granite Construction Incorporated	$ 15,282	$ 13,037	$ 8,370	$ (7,526)
Net income (loss) per share attributable to common shareholders (see Note 12)
Basic (in dollars per share)	$ 0.39	$ 0.34	$ 0.21	$ (0.19)
Diluted (in dollars per share)	$ 0.38	$ 0.33	$ 0.21	$ (0.19)
Weighted average shares of common stock
Weighted average common shares outstanding, basic	39,150	38,876	39,073	38,773
Weighted average common shares outstanding, diluted	39,813	39,759	39,790	38,773
Dividends per common share (in US$ per share)	$ 0.13	$ 0.13	$ 0.39	$ 0.39

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Marketable Securities

9 Months Ended

Sep. 30, 2014

Marketable Securities [Abstract]

Marketable Securities

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)	September 30, 2014		December 31, 2013		September 30, 2013
U.S. Government and agency obligations	$	12,967	$	10,000	$	1,260
Commercial paper	14,983		39,968		19,982
Municipal bonds	—		—		1,650
Total short-term marketable securities	27,950		49,968		22,892
U.S. Government and agency obligations	74,140		67,234		64,014
Total long-term marketable securities	74,140		67,234		64,014
Total marketable securities	$	102,090	$	117,202	$	86,906

Scheduled maturities of held-to-maturity investments were as follows:

(in thousands)	September 30, 2014
Due within one year	$	27,950
Due in one to five years	74,140
Total	$	102,090