Equity Method Investments

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

The Company had three equity method investments in limited liability companies that owned refined coal production plants whose activities qualified for income tax credits under Section 45 of the Code. The Company did not consolidate these entities as we had determined that we were not the primary beneficiary of these entities and did not have the power to individually direct the activities of these entities. Accordingly, these investments were accounted for under the equity method of accounting. For each of the clean energy investments, the Company had entered into notes payable with the respective project sponsor, which in part were paid to the sponsor as certain production levels were met. The law that provides for IRC Section 45 tax credits expired during the year ended December 31, 2021 for all three clean energy investments and all of the clean energy investments have wound down operations.

During the years ended December 31, 2021, 2020, and 2019, the Company reduced its long-term obligations for its three investments as a result of lower than anticipated production levels and lower expected future variable debt payments to the respective project sponsor. The Company recognized a net gain of approximately $5.7 million, $21.4 million and $7.0 million, respectively, which was recognized as a component of the net loss of the equity method investments in the consolidated statements of operations.

The carrying values and respective balance sheet locations of the Company’s clean energy investments were as follows at December 31, 2021 and 2020, respectively:


(In millions)	December 31, 2021		December 31, 2020
Other assets	$	—	$	47.9
Other current liabilities	10.9		47.5

Summarized financial information, in the aggregate, for the Company’s significant equity method investments on a 100% basis as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020 and 2019 are as follows:


(In millions)	December 31, 2021		December 31, 2020
Current assets	$	4.2	$	38.9
Noncurrent assets	0.5		1.0
Total assets	4.7		39.9
Current liabilities	2.8		33.0
Noncurrent liabilities	—		1.8
Total liabilities	2.8		34.8
Net assets	$	1.9	$	5.1


	Year Ended December 31,
(In millions)	2021		2020		2019
Total revenues	$	326.7	$	374.5	$	385.0
Gross loss	(4.6)		(4.6)		(4.4)
Operating and non-operating expense	16.8		19.0		20.0
Net loss	$	(21.4)	$	(23.6)	$	(24.4)

The Company’s net losses from its equity method investments include amortization expense related to the excess of the cost basis of the Company’s investment over the underlying assets of each individual investee. For the years ended December 31, 2021, 2020 and 2019, the Company recognized net losses from equity method investments of $61.9 million, $48.4 million, and $62.1 million, respectively, which were recognized as a component of other expense, net in the consolidated statements of operations. The Company recognizes the income tax credits and benefits from the clean energy investments as part of its provision for income taxes.