Quarterly report pursuant to Section 13 or 15(d)

Investments in Affiliated Companies

v3.10.0.1
Investments in Affiliated Companies
 6 Months Ended
Jun. 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 June 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
June 30,
 
Six months ended
June 30,
 
 
2018
 
2017
 
2018
 
2017
Net sales
 
$
108,898

 
$
68,732

 
$
197,474

 
$
141,787

Gross profit
 
40,669

 
29,661

 
76,191

 
58,586

Operating income
 
31,622

 
19,112

 
57,663

 
37,695

Net income
 
30,638

 
20,809

 
57,660

 
39,844

 
(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 June 30, 2018 and December 31, 2017 includes net purchase accounting fair value adjustments of $261,384 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 $3,316 of amortization expense related to purchase accounting fair value adjustments for the three and six months ended June 30, 2018, respectively. Consolidated equity in net income from affiliates is net of $1,658 and $5,282 of amortization expense related to purchase accounting fair value adjustments for the three and six months ended June 30, 2017.