Investments in Affiliated Companies

9 Months Ended

Sep. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

11. Investments in Affiliated Companies:

The Company accounts for investments in affiliated companies under the equity method. Affiliated companies accounted for on the equity basis as of September 30, 2020 are as follows:

Company

Country

Percent
Ownership

PQ Silicates Ltd.

Taiwan

50%

Zeolyst International

USA

50%

Zeolyst C.V.

Netherlands

50%

Asociacion para el Estudio de las Tecnologias de Equipamiento de Carreteras, S.A. (“Aetec”)

Spain

20%

Following is summarized information of the combined investments(1):


	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Sales	$	57,923	$	121,471	$	217,290	$	279,503
Gross profit	11,679		48,416		77,288		102,966
Operating income	3,304		37,958		49,001		74,217
Net income	3,681		37,852		50,049		75,002

(1)Summarized information of the combined investments is presented at 100%; the Company’s share of the net assets and net income of affiliates is calculated based on the percent ownership specified in the table above.

In March 2020, the Company sold its 49% interest in the Quaker Holdings joint venture to a third party. Prior to the Company’s disposition of its shares in the joint venture, the Company received a liquidating dividend of $729 as well as $1,032 for the sale of the joint venture shares, which was included in the proceeds from sale of investment within the investing activities section of the Company’s consolidated statement of cash flows.

The Company’s investments in affiliated companies balance as of September 30, 2020 and December 31, 2019 includes net purchase accounting fair value adjustments of $245,557 and $250,532, respectively, related to the series of transactions consummated on May 4, 2016 to reorganize and combine the businesses of PQ Holdings Inc. and Eco Services Operations LLC, consisting primarily of goodwill and intangible assets such as customer relationships, technical know-how and trade names. Consolidated equity in net income from affiliates is net of $1,659 and $4,975 of amortization expense related to purchase accounting fair value adjustments for the three and nine months ended September 30, 2020, respectively. Consolidated equity in net income from affiliates is net of $1,658 and $5,875 of amortization expense related to purchase accounting fair value adjustments for the three and nine months ended September 30, 2019, respectively.