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Note 2 - Other Assets
9 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Other Assets Disclosure [Text Block]

2 Other Assets

 

Equity Method Investment

 

On February 25, 2019, the Company acquired 50% of the equity interest in RTC Canada, which acquired the operating assets of Tallman Group, the largest International Truck dealer in Canada. Prior to acquiring an additional 30% equity interest on May 2, 2022, for approximately $20.0 million, the Company accounted for the equity interest in RTC Canada using the equity method of accounting. Now that the Company owns an 80% equity interest in RTC Canada, the operating results of RTC Canada are consolidated in the Consolidated Statements of Income, the Consolidated Statements of Comprehensive Income and the Consolidated Balance Sheets, as of May 2, 2022. See Note 13 – Acquisitions in the Notes to the Financial Statements for further discussion.

 

On January 3, 2022, a subsidiary of Cummins, Inc. acquired a 50% equity interest in Natural Gas Fuel Systems, LLC (“NGFS”) from the Company for $27.5 million. NGFS previously conducted business as Momentum Fuel Technologies. The $12.5 million gain realized on the transaction is included in Other income on the Consolidated Statements of Income. The Company is accounting for the business as a joint venture and recognizes the investment using the equity method. As of September 30, 2022, the Company’s investment in NGFS was $14.4 million. The Company’s equity income in NGFS is included in the line item Other income on the Consolidated Statements of Income.