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Investments in Affiliates
 12 Months Ended
Dec. 31, 2023
Investments in and Advances to Affiliates [Abstract]  
Investments in Affiliates
10. Investments in Affiliates
Our investments in affiliates balance is related to our investments in unconsolidated non-construction entities that we account for using the equity method of accounting, including investments in foreign affiliates, real estate entities and an asphalt terminal entity.
The foreign affiliates in which we are invested are engaged in mineral drilling services and the manufacture and supply of drilling equipment, parts and supplies in Latin America. The real estate entities were formed to accomplish specific real estate development projects in which our wholly owned subsidiary, Granite Land Company, participates with third-party partners. The asphalt terminal entity is a 50% interest in a limited liability company which owns and operates an asphalt terminal and operates an emulsion plant in Nevada.
We have determined that the real estate entities are not consolidated because although they are VIEs, we are not the primary beneficiary. We have determined that the foreign affiliates and the asphalt terminal entity 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.
Our investments in affiliates balance consists of equity method investments in the following types of entities:
(in thousands)December 31, 2023December 31, 2022
Foreign$68,407 $58,579 
Real estate7,136 8,517 
Asphalt terminal17,367 13,629 
Total investments in affiliates$92,910 $80,725 
The following table provides summarized balance sheet information for our affiliates accounted for under the equity method on a combined basis:
(in thousands)December 31, 2023December 31, 2022
Current assets$204,897 $194,210 
Noncurrent assets159,694 172,560 
Total assets$364,591 $366,770 
Current liabilities$81,899 $106,780 
Long-term liabilities (1)54,591 59,356 
Total liabilities$136,490 $166,136 
Net assets$228,101 $200,634 
Granite’s share of net assets$92,910 $80,725 
(1)This balance is primarily related to local bank debt for equipment purchases, working capital in our foreign affiliates and debt associated with our real estate investments.
Of the $364.6 million in total assets as of December 31, 2023, we had investments in two real estate entities with total assets of $30.5 million and $25.8 million, our foreign affiliates had total assets of $265.0 million, and the asphalt terminal entity had total assets of $43.2 million. As of December 31, 2023 and 2022, all of the equity method investments in real estate affiliates were in residential real estate in Texas. As of December 31, 2023, our percent ownership in the real estate entities ranged from 10% to 25%. We have direct and indirect investments in our foreign affiliates, and our percent ownership in foreign affiliates ranged from 25% to 50% as of December 31, 2023.
The following table provides summarized statements of operations information for our affiliates accounted for under the equity method on a combined basis (in thousands):
Years Ended December 31,202320222021
(in thousands)
Revenue$476,361 $377,256 $302,084 
Gross profit$142,139 $95,816 $74,939 
Income before taxes$99,108 $60,513 $38,261 
Net income$86,124 $47,331 $33,864 
Granite’s interest in affiliates’ net income$25,748 $13,571 $12,586