11. 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 June 30, 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 June 30, 2018, there was approximately $3.9 billion of construction revenue to be recognized on unconsolidated and line item construction joint venture contracts of which $1.3 billion represented our share and the remaining $2.6 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 June 30, 2018, we were engaged in six active CCJV projects with total contract values ranging from $50.5 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 $430.9 million and ranged from $1.1 million to $190.8 million. Our proportionate share of the equity in these joint ventures was between 50.0% and 65.0%. During the three and six months ended June 30, 2018, total revenue from CCJVs was $67.7 million and $111.5 million, respectively. During the three and six months ended June 30, 2017, total revenue from CCJVs was $49.5 million and $85.0 million, respectively. During the six months ended June 30, 2018 and 2017, CCJVs provided $15.1 million and $19.2 million of operating cash flows, respectively.

Unconsolidated Construction Joint Ventures

As of June 30, 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 $12.2 billion. Our proportionate share of the equity in these unconsolidated construction joint ventures ranged from 20.0% to 50.0%. As of June 30, 2018, our share of the revenue remaining to be recognized on these unconsolidated construction joint ventures was $1.3 billion and ranged from $2.3 million to $312.8 million.

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

(in thousands)	June 30, 2018		December 31, 2017		June 30, 2017
Assets
Cash, cash equivalents and marketable securities	$	309,330	$	289,940	$	388,542
Other current assets¹		701,945		812,577		632,166
Noncurrent assets		211,963		219,825		230,633
Less partners’ interest		792,567		869,782		828,237
Granite’s interest^1,2		430,671		452,560		423,104
Liabilities
Current liabilities		535,700		682,832		668,630
Less partners’ interest and adjustments³		342,760		462,159		460,052
Granite’s interest		192,940		220,673		208,578
Equity in construction joint ventures⁴	$	237,731	$	231,887	$	214,526

¹Included in this balance and in accrued expenses and other current liabilities on our condensed consolidated balance sheets were amounts related to performance guarantees that were $88.6 million as of both June 30, 2018 and December 31, 2017 and $88.9 million as of June 30, 2017.

²Included in this balance as of June 30, 2018, December 31, 2017 and June 30, 2017 was $65.8 million, $74.3 million and $81.7 million, respectively, related to Granite’s share of estimated cost recovery of customer affirmative claims. In addition, this balance included $10.6 million, $11.8 million and $9.8 million related to Granite’s share of estimated recovery of back charge claims as of June 30, 2018, December 31, 2017 and June 30, 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 and estimates primarily related to contract forecast differences.

⁴Included in this balance and in accrued expenses and other current liabilities on the condensed consolidated balance sheets were amounts related to deficits in construction joint ventures that were $14.7 million as of June 30, 2018 and $15.9 million as of both December 31, 2017 and June 30, 2017.

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2018			2017			2018			2017
Revenue
Total	$	449,996		$	515,983		$	689,437		$	967,304
Less partners’ interest and adjustments¹		340,809			376,332			461,841			700,162
Granite’s interest		109,187			139,651			227,596			267,142
Cost of revenue
Total		423,385			498,932			804,274			941,922
Less partners’ interest and adjustments¹		296,250			349,557			562,751			666,552
Granite’s interest		127,135			149,375			241,523			275,370
Granite’s interest in gross loss	$	(17,948	)	$	(9,724	)	$	(13,927	)	$	(8,228	)

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 and six months ended June 30, 2018, unconsolidated construction joint venture net income (loss) was $26.5 million and ($114.4) million, respectively, of which our post-adjustment share were net losses of ($17.7) million and ($13.4) million, respectively. During the three and six months ended June 30, 2017, unconsolidated construction joint venture net income was $17.6 million and $26.2 million, respectively, of which our post-adjustment share were net losses of ($9.7) million and ($8.2) million, respectively. The differences between our share of the joint venture net loss during 2018 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 two 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 June 30, 2018, we had one active line item joint venture construction project with a total contract value of $18.0 million of which our portion was $10.8 million. As of June 30, 2018, our share of revenue remaining to be recognized on this line item joint venture was $10.6 million. During the three and six months ended June 30, 2018, our portion of revenue from line item joint ventures was $0.4 million and $1.2 million, respectively. During the three and six months ended June 30, 2017, our portion of revenue from line item joint ventures was $6.8 million and $14.7 million, respectively.