Investments in Unconsolidated Entities

3 Months Ended

Nov. 30, 2016

Investments in Unconsolidated Entities

4. Investments in Unconsolidated Entities

The Company’s ownership interest and carrying amounts of investments in unconsolidated entities as of November 30, 2016 and August 31, 2016 consisted of the following (in thousands, except percentages):


	November 30, 2016				August 31, 2016
	Percentage				Percentage
	Ownership		Amount		Ownership		Amount
Equity method investments:
SILQ (Malaysia) Sdn. Bhd. (“SILQ”)	—	%	$	—	33	%	$	50
Xurui Guangdian Co., Ltd. (“China SemiLEDs”)	49	%		—	49	%		—
Cost method investments	Various			1,314	Various			1,318
Total investments in unconsolidated entities			$	1,314			$	1,368

There were no dividends received from unconsolidated entities through November 30, 2016.

Equity Method Investments

The Company and the other investor in SILQ, a joint venture in Malaysia which was engaged in the design, manufacture and sale of lighting fixtures and systems, each owned a 50% equity interest in SILQ in 2009. In January 2014, the Company participated in SILQ’s capital increase and contributed $76 thousand. Following the capital increase, the Company’s equity interest in SILQ was diluted from 50% to 49%, and consequently, the Company recognized a gain on dilution of its investment of $26 thousand. The dilution gain was recognized as additional paid in capital in the consolidated statement of changes in equity. In April 2014, the Company sold part of its equity interest in SILQ to the other investor for a cash consideration of $114 thousand and recognized a gain on sale of investment of $37 thousand. The gain was reported in the consolidated statements of operations in equity in losses from unconsolidated entities. Upon consummation of the sale, the Company’s equity interest in SILQ was reduced from 49% to 33%. The Company subsequently invested $130 thousand in SILQ’s capital increase in April 2014 and its equity interest remains unchanged. In November 2016, the Company sold all of its equity interest in SILQ to the other investor for a cash consideration of $41 thousand and recognized a loss on sale of investment of $9 thousand.

The Company still owns a 49% equity interest in China SemiLEDs. However, this investment has a carrying amount of zero as a result of a previously recognized impairment.

Cost Method Investments

The fair values of the Company’s cost method investments are not readily available. All cost method investments are assessed for impairment when events or changes in circumstances indicate that the carrying amounts may not be recoverable.