XML 174 R11.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Equity-Method Investments
 12 Months Ended
Dec. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]  
Equity-Method Investments Equity-Method Investments
During 2010, the Company, through its wholly owned subsidiaries, made total cash investments of $46.2 million in two newly-formed Hong Kong entities, China Merchants Americold Holdings Logistics Company Limited (CMAL) and China Merchants Americold Holdings Company Limited (CMAH, together with CMAL, the Joint Venture, or China JV). Through these subsidiaries, the Company acquired a 49% interest in the Joint Venture, while China Merchants Holdings International Company (CMHI) acquired the remaining 51% interest in the Joint Venture. CMHI is a Hong Kong based entity that is part of the China Merchants Group. Other affiliates of CMHI subsequently purchased 50,000 shares of the Company’s Series B Preferred Shares, subsequently converted to common shares in connection with our IPO. The Joint Venture was formed with the purpose of acquiring, owning, and operating temperature-controlled warehouses, primarily in the People’s Republic of China. During 2015, the Company made an additional capital contribution of $1.3 million to the Joint Venture for general corporate purposes.
In 2017, the Company recognized an impairment charge totaling $6.5 million related to our investment in the Joint Venture as we determined that the recorded investment was no longer recoverable from the projected future cash flows expected to be received from the Joint Venture. The estimated fair value of this investment was determined based on active negotiations of the proceeds expected to be received from the potential sale of our investment interests to the joint venture partner.
During the third quarter of 2019, the Company completed the sale of its equity interest in its China JV to an affiliate of its joint venture partner for total cash consideration of $15.0 million. The resulting gain on the sale of the China JV totaled $4.3 million and is included in “Gain from sale of partially owned entities” on the accompanying Consolidated Statements of Operations. The gain recorded includes $2.6 million related to cumulative foreign currency translation historically recorded through Other Comprehensive Income which stemmed from the remeasurement of the foreign denominated equity-method investment in the China JV. The following tables summarize the financial information of the Company’s China JV for the periods presented, prior to disposition.

The condensed summary financial information for the Company’s China JV is as follows for the portion of the year which the Company held ownership interest in the China JV during 2019 and the full year ended December 31, 2018:
 
2019
Condensed results of operations
CMAL
CMAH
Total
 
(In thousands)
Revenues
$
28,334

$
10,907

$
39,241

Operating (loss) income
$
(348
)
$
1,920

$
1,572

Net (loss) income
$
(507
)
$
1,018

$
511

Company’s (loss) income from partially owned entities
$
(429
)
$
318

$
(111
)
 
2018
Condensed results of operations
CMAL
CMAH
Total
 
(In thousands)
Revenues
$
37,458

$
13,621

$
51,079

Operating (loss) income
$
(1,748
)
$
2,432

$
684

Net (loss) income
$
(1,960
)
$
1,651

$
(309
)
Company’s (loss) income from partially owned entities
$
(1,419
)
$
350

$
(1,069
)
 
2017
Condensed results of operations
CMAL
CMAH
Total
 
(In thousands)
Revenues
$
38,662

$
12,294

$
50,956

Operating (loss) income
$
(2,052
)
$
314

$
(1,738
)
Net loss
$
(2,479
)
$
(296
)
$
(2,775
)
Company’s loss from partially owned entities
$
(1,143
)
$
(220
)
$
(1,363
)
In addition to the China JV, the Company had an investment in a joint venture accounted for under the equity-method, for which a complete return of capital totaling $2.0 million was received during the first quarter of 2019, eliminating the Company’s involvement in the joint venture.