Investment in equity method investee

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

The Company owns 50% of the Common Unit voting shares of Concrete Pipe & Precast LLC ("CP&P") and consequently, has recorded its investment in the Common Unit voting shares in accordance with ASC 323, Investments – Equity Method and Joint Ventures, under the equity method of accounting.

The Company's investment in the joint venture was $51.2 million at March 31, 2020, which is included within the Drainage Pipe & Products segment. At March 31, 2020, the difference between the amount at which the Company's investment is carried and the amount of the Company's share of the underlying equity in net assets of CP&P was approximately $13.0 million. The basis difference is primarily attributed to the value of land and equity method goodwill associated with the investment.

The following reflects the Company's distribution and earnings in the equity investment (in thousands):



	Three months ended
	March 31,
	2020			2019
Distribution received from CP&P	$	(1,600	)	$	(1,500	)
Share of earnings in CP&P	2,816			1,585
Amortization of excess fair value of investment	(18		)	(18		)

Selected financial data for CP&P on a 100% basis is as follows (in thousands):



	Three months ended
	March 31,
	2020		2019
Net sales	$	34,758	$	28,249
Gross profit	10,537		7,954
Income from operations	5,620		3,180
Net income	5,557		3,117