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 September 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 September 30, 2018, there was approximately $3.5 billion of construction revenue to be recognized on unconsolidated and line item construction joint venture contracts of which $1.2 billion represented our share and the remaining $2.3 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 September 30, 2018, we were engaged in six active CCJV projects with total contract values ranging from $50.8 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 $394.9 million and ranged between $0.5 million and $185.0 million. Our proportionate share of the equity in these joint ventures was between 50.0% and 65.0%. During the three and nine months ended September 30, 2018, total revenue from CCJVs was $61.6 million and $173.1 million, respectively. During the three and nine months ended September 30, 2017, total revenue from CCJVs was $44.5 million and $129.5 million, respectively. During the nine months ended September 30, 2018 and 2017, CCJVs provided $31.5 million and $26.4 million of operating cash flows, respectively.

Unconsolidated Construction Joint Ventures

As of September 30, 2018, we were engaged in nine active unconsolidated joint venture projects with total contract values ranging from $85.2 million to $3.8 billion and a combined total of $11.2 billion. Our proportionate share of the equity in these unconsolidated construction joint ventures ranged from 20.0% to 50.0%. As of September 30, 2018, our share of the revenue remaining to be recognized on these unconsolidated construction joint ventures was $1.1 billion and ranged from $2.3 million to $273.2 million.

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

(in thousands)	September 30, 2018		December 31, 2017		September 30, 2017
Assets
Cash, cash equivalents and marketable securities	$	242,028	$	289,940	$	333,751
Other current assets¹		806,104		812,577		721,014
Noncurrent assets		204,201		219,825		223,449
Less partners’ interest		810,111		869,782		846,832
Granite’s interest^1,2		442,222		452,560		431,382
Liabilities
Current liabilities		511,639		682,832		650,065
Less partners’ interest and adjustments³		331,838		462,159		445,068
Granite’s interest		179,801		220,673		204,997
Equity in construction joint ventures⁴	$	262,421	$	231,887	$	226,385

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 September 30, 2018 and December 31, 2017 and were $88.9 million as of September 30, 2017.

²Included in this balance as of September 30, 2018, December 31, 2017 and September 30, 2017 was, $67.1 million, $74.3 million, and $77.6 million, respectively, related to Granite’s share of estimated cost recovery of customer affirmative claims. In addition, this balance included $12.5 million, $11.8 million and $11.1 million related to Granite’s share of estimated recovery of back charge claims as of September 30, 2018, December 31, 2017 and September 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 $11.6 million, $15.9 million and $16.0 million as of September 30, 2018, December 31, 2017 and September 30, 2017, respectively.

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2018			2017			2018			2017
Revenue
Total	$	436,093		$	550,115		$	1,125,530		$	1,517,419
Less partners’ interest and adjustments¹		285,064			396,672			746,905			1,096,834
Granite’s interest		151,029			153,443			378,625			420,585
Cost of revenue
Total		485,190			520,205			1,289,464			1,462,127
Less partners’ interest and adjustments¹		330,141			359,825			892,892			1,026,377
Granite’s interest		155,049			160,380			396,572			435,750
Granite’s interest in gross loss	$	(4,020	)	$	(6,937	)	$	(17,947	)	$	(15,165	)

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 nine months ended September 30, 2018, unconsolidated construction joint venture net losses were $(47.6) million and ($162.0) million, respectively, of which our post-adjustment share were net losses of ($3.1) million and ($16.5) million, respectively. During the three and nine months ended September 30, 2017, unconsolidated construction joint venture net income was $31.0 million and $57.2 million, respectively, of which our post-adjustment share were net losses of ($7.1) million and ($15.3) million, respectively. The differences between our share of the joint venture net loss during both periods of 2017 when compared to the joint venture net income 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 September 30, 2018, we had one active line item joint venture construction project with a contract value of $18.0 million of which our portion was $10.8 million. As of September 30, 2018, our share of revenue remaining to be recognized on this line item joint venture was $9.9 million. During the three and nine months ended September 30, 2018, our portion of revenue from line item joint ventures was $0.8 million and $2.0 million, respectively. During the three and nine months ended September 30, 2017, our portion of revenue from line item joint ventures was $5.4 million and $20.1 million, respectively.