Investment in Joint Venture

3 Months Ended

Mar. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

We own a 49% investment in Wuxi Weifu Autocam Precision Machinery Company, Ltd. (the “JV”), a joint venture located in Wuxi, China. The JV is jointly controlled and managed, and we account for it under the equity method.

The following table summarizes activity related to our investment in the JV.



Balance as of December 31, 2018	$	20,364
Share of earnings	269
Foreign currency translation gain	454
Balance as of March 31, 2019	$	21,087

During the fourth quarter of 2018, as a result of changing market conditions, the fair value of the JV was assessed and we recorded an impairment charge of $16.6 million against our investment in the JV. The fair value assessment was most significantly affected by changes in our assessment of future growth rates. It is reasonably possible that material deviation of future performance from the estimates used in the 2018 valuation could result in further impairment to our investment in the JV in subsequent periods. There was no impairment of our investment in the JV during the three months ended March 31, 2019.

We recognized sales to the JV of less than $0.1 million and $0.1 million during the three months ended March 31, 2019 and 2018, respectively.