Quarterly report pursuant to Section 13 or 15(d)

Investments in Affiliated Companies

v3.10.0.1
Investments in Affiliated Companies
 9 Months Ended
Sep. 30, 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 September 30, 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
September 30,
 
Nine months ended
September 30,
 
 
2018
 
2017
 
2018
 
2017
Net sales
 
$
74,088

 
$
83,983

 
$
271,562

 
$
225,770

Gross profit
 
24,495

 
33,276

 
100,686

 
91,862

Operating income
 
14,594

 
22,713

 
72,257

 
60,408

Net income
 
14,545

 
23,819

 
72,204

 
63,663

 
(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 September 30, 2018 and December 31, 2017 includes net purchase accounting fair value adjustments of $259,725 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 $4,975 of amortization expense related to purchase accounting fair value adjustments for the three and nine months ended September 30, 2018, respectively. Consolidated equity in net income from affiliates is net of $1,658 and $6,941 of amortization expense related to purchase accounting fair value adjustments for the three and nine months ended September 30, 2017.