10.	Construction Joint Ventures

We participate in various construction joint ventures. We have determined that certain of these joint ventures are consolidated because they are variable interest entities (“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 three months ended March 31, 2018, we determined no change to the primary beneficiary was required for existing construction joint ventures.

Due to the joint and several nature of the performance obligations under the related owner contracts, if any of the partners fail to perform, we and the remaining partners, if any, would be responsible for performance of the outstanding work (i.e., we provide a performance guarantee). At March 31, 2018, there was approximately $4.2 billion of construction revenue to be recognized on unconsolidated and line item construction joint venture contracts of which $1.4 billion represented our share and the remaining $2.8 billion represented our partners’ share. We are not able to estimate amounts that may be required beyond the remaining cost of the work to be performed. These costs could be offset by billings to the customer or by proceeds from our partners’ and/or other guarantees.

Consolidated Construction Joint Ventures (“CCJVs”)

At March 31, 2018, we were engaged in six active CCJV projects with total contract values ranging from $49.9 million to $409.7 million and a combined total of $1.2 billion. Our share of revenue remaining to be recognized on these CCJVs was $469.5 million and ranged from $2.8 million to $196.1 million. Our proportionate share of the equity in these joint ventures was between 50.0% and 65.0%. During the three months ended March 31, 2018 and 2017, total revenue from CCJVs was $43.8 million and $35.5 million, respectively. During the three months ended March 31, 2018 and 2017, CCJVs used $2.5 million and $6.5 million of operating cash flows, respectively.

Unconsolidated Construction Joint Ventures

As of March 31, 2018, we were engaged in ten active unconsolidated joint venture projects with total contract values ranging from $77.3 million to $3.7 billion and a combined total of $12.1 billion. Our proportionate share of the equity in these unconsolidated construction joint ventures ranged from 20.0% to 50.0%. As of March 31, 2018, our share of the revenue remaining to be recognized on these unconsolidated construction joint ventures was $1.4 billion and ranged from $2.3 million to $326.5 million.

The following is summary financial information related to unconsolidated construction joint ventures:

(in thousands)	March 31, 2018		December 31, 2017		March 31, 2017
Assets:
Cash, cash equivalents and marketable securities	$	325,157	$	289,940	$	399,445
Other current assets¹		627,602		812,577		703,498
Noncurrent assets		219,435		219,825		205,517
Less partners’ interest		757,537		869,782		876,118
Granite’s interest^1,2		414,657		452,560		432,342
Liabilities:
Current liabilities		605,639		682,832		660,537
Less partners’ interest and adjustments³		423,518		462,159		447,502
Granite’s interest		182,121		220,673		213,035
Equity in construction joint ventures⁴	$	232,536	$	231,887	$	219,307

¹Included in this balance and in accrued and other current liabilities on our condensed consolidated balance sheets as of March 31, 2018, December 31, 2017 and March 31, 2017 was $88.6 million, $88.6 million and $83.1 million respectively, related to performance guarantees.

²Included in this balance as of March 31, 2018, December 31, 2017 and March 31, 2017 was $65.0 million, $74.3 million and $69.7 million respectively, related to Granite’s share of estimated cost recovery of customer affirmative claims. In addition, this balance included $11.3 million, $11.8 million and $7.9 million related to Granite’s share of estimated recovery of back charge claims as of March 31, 2018, December 31, 2017 and March 31, 2017, respectively.

³Partners’ interest and adjustments includes amounts to reconcile total net assets as reported by our partners to Granite’s interest adjusted to reflect our accounting policies primarily related to gross profit forecast differences.

⁴As of March 31, 2018, December 31, 2017 and March 31, 2017, this balance included $22.3 million, $15.9 million and $16.4 million, respectively, of deficit in construction joint ventures that is included in accrued expenses and other current liabilities in the condensed consolidated balance sheets.

	Three Months Ended March 31,
(in thousands)	2018		2017
Revenue:
Total	$	239,441	$	451,321
Less partners’ interest and adjustments¹		121,032		323,830
Granite’s interest		118,409		127,491
Cost of revenue:
Total		380,889		442,990
Less partners’ interest and adjustments¹		266,501		316,995
Granite’s interest		114,388		125,995
Granite’s interest in gross profit	$	4,021	$	1,496

¹Partners’ interest and adjustments 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 and estimates.

During the three months ended March 31, 2018 and 2017, unconsolidated construction joint venture net (loss) income was $(141.0) million and $8.6 million, respectively, of which our post-adjustment share was net income of $2.6 million and $1.5 million, respectively. The differences between our share of the joint venture net income (loss) when compared to the joint venture net income (loss) primarily resulted from differences between our estimated total revenue and cost of revenue when compared to that of our partners’ on four projects. These joint venture net income amounts exclude our corporate overhead required to manage the joint ventures and include taxes only to the extent the applicable states have joint venture level taxes.

Line Item Joint Ventures

As of March 31, 2018, we had one active line item joint venture construction project with a total contract value of $66.2 million of which our portion was $49.0 million. As of March 31, 2018, our share of revenue remaining to be recognized on this line item joint venture was $0.5 million. During the three months ended March 31, 2018 and 2017, our portion of revenue from line item joint ventures was $0.8 million and $8.0 million, respectively.