Quarterly report pursuant to Section 13 or 15(d)

Investments in Affiliated Companies

v3.8.0.1
Investments in Affiliated Companies
 3 Months Ended
Mar. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Affiliated Companies
10. 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 March 31, 2018 are as follows:
Company
 
Country
 
Percent
Ownership
PQ Silicates Ltd.
 
Taiwan
 
50%
Zeolyst International
 
USA
 
50%
Zeolyst C.V.
 
Netherlands
 
50%
Quaker Holdings
 
South Africa
 
49%
Following is summarized information of the combined investments(1):    
 
 
Three months ended
March 31,
 
 
2018
 
2017
Net sales
 
$
88,576

 
$
73,055

Gross profit
 
35,522

 
28,925

Operating income
 
26,041

 
18,583

Net income
 
27,022

 
19,035

 
(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.
The Company’s investments in affiliated companies balance as of March 31, 2018 and December 31, 2017 includes net purchase accounting fair value adjustments of $263,042 and $264,700, respectively, related to the combination of the businesses of PQ Holdings Inc. and Eco Services Operations LLC in May 2016, 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 $1,658 and $3,624 of amortization expense related to purchase accounting fair value adjustments for the three months ended March 31, 2018 and 2017, respectively.