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OHL USA, INC. AND SUBSIDIARIES <br />NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <br />DECEMBER 31, 2020 <br />Note 10 - Investment in Unconsolidated Joint Ventures cont'd. <br />Judlau's ownership and profit and loss percentage in JTJ Contracting is 40% and is accounted <br />for under the proportionate consolidation method for both the balance sheet and statement of <br />income. The joint venture partners of JTJ Contracting are companies under common <br />management. <br />Judlau's ownership and profit and loss percentage in Judlau White, a Joint Venture is 50% <br />and is accounted for under the proportiorVate consolidation method for both the balance sheet <br />and statement of income. <br />Judlau's ownership and profit and loss percentage in Ave Z Constructors - A JV is 50% and is <br />accounted for under the proportionate consolidation method for both the balance sheet and <br />statement of income. <br />Judlau's ownership and profit and loss percentage in Judlau - S&J, a Joint Venture is 70% <br />and is accounted for under the proportionate consolidation method for both the balance sheet <br />and statement of income. <br />Community, in the normal course of business, has entered into an unconsolidated joint <br />venture partnership, Community/Condotte/De Moya JV ("CCDM JV"). The joint venture <br />agreement, which requires the participants to contribute additional capital as needed, provides <br />that Community will receive from the joint venture its proportionate share of profits and losses <br />realized from the contracts. <br />Community's ownership and profit and loss percentage in CCDM JV is 50% and is accounted <br />for under the proportionate consolidation method for both the balance sheet and statement of <br />income. <br />The unconsolidated joint ventures are variable interest entities of USA, Judlau and <br />Community; however, USA, Judlau and Community are not the primary beneficiaries as they <br />do not have the power to solely direct the activities of the joint ventures that most significantly <br />impact their economic performance. Power is shared equally between USA, Judlau and <br />Community and their respective joint venture partners as to management oversight and <br />decision making. <br />Circumstances that could lead to a loss under these arrangements beyond USA's, Judlau's <br />and Community's proportionate share include a partner's inability to contribute additional <br />funds to the joint ventures in the event the project incurs a loss, or additional costs that USA, <br />Judlau and Community could incur should a partner fail to provide services and resources <br />toward the project's completion that had been committed to in the joint venture agreement. <br />28 <br />