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Equity Method Investments (Tables)
 9 Months Ended
Sep. 30, 2015
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Equity Method Investments
The following table summarizes the results of operations of CCSS:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in thousands)
 
2015
 
2014
 
2015
 
2014
Gross loss
 
$
(11,616
)
 
$
(5,247
)
 
$
(31,511
)
 
$
(14,064
)
Operating expenses
 
41,322

 
25,082

 
120,269

 
68,463

Loss from operations
 
(52,938
)
 
(30,329
)
 
(151,780
)
 
(82,527
)
Other expenses
 
(7
)
 
(34
)
 
(86
)
 
(57
)
Loss attributable to noncontrolling interest
 
55,661

 
32,147

 
158,926

 
87,642

Net income
 
$
2,716

 
$
1,784

 
$
7,060

 
$
5,058

ADES equity earnings
 
$
1,358

 
$
892

 
$
3,530

 
$
2,529

The following tables summarize the results of operations of CCS for the three and nine months ended September 30, 2015 and 2014, respectively:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in thousands)
 
2015
 
2014
 
2015
 
2014
Gross profit
 
$
25,035

 
$
23,075

 
$
80,869

 
$
60,580

Operating expenses
 
5,369

 
4,856

 
17,872

 
14,275

Income from operations
 
19,666

 
18,219

 
62,997

 
46,305

Other expenses
 
(1,464
)
 
(483
)
 
(1,794
)
 
(1,224
)
Class B preferred return
 
(1,463
)
 
(2,176
)
 
(4,825
)
 
(6,759
)
Loss attributable to noncontrolling interest
 
3,698

 
4,163

 
6,811

 
7,164

Net income available to Class A members
 
$
20,437

 
$
19,723

 
$
63,189

 
$
45,486

ADES equity earnings
 
$
—

 
$
6,226

 
$
4,730

 
$
22,547

The following table presents the Company's investment balance, equity earnings and cash distributions in excess of the investment balance, on a quarterly basis, for the three and nine months ended September 30, 2015 (in thousands):
Description
 
Date(s)
 
Investment balance
 
ADES equity earnings (loss)
 
Cash distributions
 
Cash distributions and equity loss in (excess) of investment balance
Beginning balance
 
12/31/14
 
$
—

 
$
—

 
$
—

 
$
(29,877
)
ADES proportionate share of income from CCS (1)
 
First Quarter
 
9,827

 
9,827

 
—

 
—

Increase of equity loss in excess of investment balance (prior to cash distributions)
 
First Quarter
 
(9,827
)
 
(9,827
)
 
—

 
9,827

Cash distributions from CCS
 
First Quarter
 
(100
)
 
—

 
100

 
—

Adjustment for current year cash distributions in excess of investment balance
 
First Quarter
 
100

 
100

 
—

 
(100
)
Total investment balance, equity earnings (loss) and cash distributions
 
3/31/2015
 
—

 
100

 
100

 
(20,150
)
ADES proportionate share of income from CCS (1)
 
Second Quarter
 
7,825

 
7,825

 
—

 
—

Increase of equity loss in excess of investment balance (prior to cash distributions)
 
Second Quarter
 
(7,825
)
 
(7,825
)
 
—

 
7,825

Cash distributions from CCS
 
Second Quarter
 
(4,630
)
 
—

 
4,630

 
—

Adjustment for current year cash distributions in excess of investment balance
 
Second Quarter
 
4,630

 
4,630

 
—

 
(4,630
)
Total investment balance, equity earnings (loss) and cash distributions
 
6/30/2015
 
—

 
4,630

 
4,630

 
(16,955
)
ADES proportionate share of income from CCS (1)
 
Third Quarter
 
8,127

 
8,127

 
—

 
—

Increase of equity loss in excess of investment balance (prior to cash distributions)
 
Third Quarter
 
(8,127
)
 
(8,127
)
 
—

 
8,127

Cash distributions from CCS
 
Third Quarter
 
—

 
—

 
—

 
—

Adjustment for current year cash distributions in excess of investment balance
 
Third Quarter
 
—

 
—

 
—

 
—

Total investment balance, equity earnings (loss) and cash distributions
 
9/30/2015
 
$
—

 
$
—

 
$
—

 
$
(8,828
)

The following table presents the Company's investment balance, equity earnings and cash distributions in excess of the investment balance, on a quarterly basis, for the nine months ended September 30, 2014 (in thousands):
Description
 
Date(s)
 
Investment balance
 
ADES equity earnings (loss)
 
Cash distributions
 
Cash distributions and equity loss in (excess) of investment balance
Beginning balance
 
12/31/2013
 
$
—

 
$
—

 
$
—

 
$
(12,906
)
ADES proportionate share of income from CCS (1)
 
First Quarter
 
4,644

 
4,644

 
—

 
—

Recovery of cumulative distributions and equity losses in excess of investment balance
 
First Quarter
 
(4,644
)
 
(4,644
)
 
—

 
4,644

Cash distributions from CCS
 
First Quarter
 
(6,588
)
 
—

 
6,588

 
—

Recognition of earnings for cash distributions in excess of investment balance
 
First Quarter
 
6,588

 
6,588

 
—

 
(6,588
)
Total investment balance, equity earnings (loss) and cash distributions
 
3/31/2014
 
—

 
6,588

 
6,588

 
(14,850
)
ADES proportionate share of income from CCS (1)
 
Second Quarter
 
5,130

 
5,130

 
—

 
—

Recovery of cumulative distributions and equity losses in excess of investment balance
 
Second Quarter
 
(5,130
)
 
(5,130
)
 
—

 
5,130

Cash distributions from CCS
 
Second Quarter
 
(9,733
)
 
—

 
9,733

 
—

Recognition of earnings for cash distributions in excess of investment balance
 
Second Quarter
 
9,733

 
9,733

 
—

 
(9,733
)
Total investment balance, equity earnings (loss) and cash distributions
 
6/30/2014
 
—

 
9,733

 
9,733

 
(19,453
)
ADES proportionate share of income from CCS (1)
 
Third Quarter
 
7,805

 
7,805

 
—

 
—

Recovery of cumulative distributions and equity losses in excess of investment balance
 
Third Quarter
 
(7,805
)
 
(7,805
)
 
—

 
7,805

Cash distributions from CCS
 
Third Quarter
 
(6,226
)
 
—

 
6,226

 
—

Recognition of earnings for cash distributions in excess of investment balance
 
Third Quarter
 
6,226

 
6,226

 
—

 
(6,226
)
Total investment balance, equity earnings (loss) and cash distributions
 
9/30/2014
 
$
—

 
$
6,226

 
$
6,226

 
$
(17,874
)
(1) The amounts of the Company's 42.5% proportionate share of net income as shown in the table above differ from mathematical calculations of the Company’s 42.5% equity interest in CCS multiplied by the amounts of Net Income available to Class A members as shown in the table above of CCS results of operations due to adjustments related to the Redeemable Class B preferred return and the elimination of CCS earnings attributable to RCM6, of which the Company owned 24.95% during the periods presented during the years ended December 31, 2015 and 2014.
The following table details the components of the Company's respective equity method investments included within the Earnings (loss) from equity method investments line item on the Condensed Consolidated Statements of Operations:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in thousands)
 
2015
 
2014
 
2015
 
2014
Earnings from CCS
 
$
—

 
$
6,226

 
$
4,730

 
$
22,547

Earnings from CCSS
 
1,358

 
892

 
3,530

 
2,529

Loss from RCM6
 
(1,399
)
 
(1,515
)
 
(3,127
)
 
(3,057
)
Earnings from equity method investments
 
$
(41
)
 
$
5,603

 
$
5,133

 
$
22,019

The following table details the components of the cash distributions from the Company's respective equity method investments included within the Condensed Consolidated Statements of Cash Flows. Distributions from equity method investees are reported on our Condensed Consolidated Statements of Cash Flows as “return on investment” within Operating cash flows until such time as the carrying value in an equity method investee company is reduced to zero; thereafter, such distributions are reported as “distributions in excess of cumulative earnings” within Investing cash flows.
 
 
Nine Months Ended September 30,
(in thousands)
 
2015
 
2014
Distributions from equity method investees, return on investment
 
 
 
 
CCSS
 
$
2,519

 
$
1,259

 
 
$
2,519

 
$
1,259

Distributions from equity method investees in excess of investment basis
 
 
 
 
CCS
 
$
4,730

 
$
22,547

 
 
$
4,730

 
$
22,547

The following table contains the capital calls and variable payments made by the Company related to its investment in RCM6 during the three and nine months ended September 30, 2015 and 2014, respectively:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in thousands)
 
2015
 
2014
 
2015
 
2014
Capital calls and variable payments
 
$
850

 
$
1,353

 
$
1,080

 
$
2,736

The following table summarizes the assets, liabilities and results of operations of RCM6:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in thousands)
 
2015
 
2014
 
2015
 
2014
Gross loss
 
$
(2,896
)
 
$
(3,326
)
 
$
(4,876
)
 
$
(5,298
)
Operating expenses
 
590

 
581

 
1,567

 
1,447

Loss from operations
 
(3,486
)
 
(3,907
)
 
(6,443
)
 
(6,745
)
Other expenses
 
(220
)
 
(265
)
 
(382
)
 
(434
)
Net loss
 
$
(3,706
)
 
$
(4,172
)
 
$
(6,825
)
 
$
(7,179
)
ADES equity losses
 
$
(1,399
)
 
$
(1,515
)
 
$
(3,127
)
 
$
(3,057
)