Equity Method Investments (Tables)

12 Months Ended

Dec. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

The following tables summarize the assets and liabilities and results of operations of RCM6 for balance sheet dates and periods ended in which the Company owned a 24.95% membership interest:



	As of December 31,
(in thousands)	2016		2015
Current assets	$	—	$	12,240
Non-current assets	$	—	$	2,472
Current liabilities	$	—	$	1,489
Non-current liabilities	$	—	$	7,649
Equity	$	—	$	5,574



	January 1 - March 3,			Year ended December 31,
(in thousands)	2016			2015			2014
Gross loss	$	(555	)	$	(7,877	)	$	(8,257	)
Operating, selling, general and administrative expenses	360			2,178			2,123
Loss from operations	(915		)	(10,055		)	(10,380		)
Other expenses	(52		)	(641		)	(666		)
Net loss	$	(967	)	$	(10,696	)	$	(11,046	)
ADES equity loss from RCM6	$	(557	)	$	(4,568	)	$	(4,497	)

The following table details the components of the Company's respective earnings or loss from equity method investments included within the Earnings from equity method investments line item on the Consolidated Statements of Operations:



	Year ended December 31,
(in thousands)	2016			2015			2014
Earnings from Tinuum Group	$	41,650		$	8,651		$	43,584
Earnings from Tinuum Services	4,491			4,838			3,625
Loss from RCM6	(557		)	(4,568		)	(4,497		)
Earnings from equity method investments	$	45,584		$	8,921		$	42,712

The following table details the components of additional cash investments related to the Company's respective equity method investments included within the Consolidated Statements of Cash Flows:



	Year ended December 31,
(in thousands)	2016		2015		2014
Purchase of RCM6 interest from Tinuum Group	$	—	$	—	$	3,153
Contributions to RCM6	223		2,398		3,478
Purchase of and contributions to equity method investments	$	223	$	2,398	$	6,631

The following table details the components of the cash distributions from the Company's respective equity method investments included within the Consolidated Statements of Cash Flows. Distributions from equity method investees are reported on the 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.



	Year ended December 31,
(in thousands)	2016		2015		2014
Distributions from equity method investees, return on investment
Tinuum Group ⁽¹⁾	$	3,400	$	—	$	—
Tinuum Services	$	4,500	$	5,019	$	2,509
Included in Operating Cash Flows	$	7,900	$	5,019	$	2,509
Distributions from equity method investees in excess of cumulative earnings
Tinuum Group	$	38,250	$	8,651	$	43,584
Included in Investing Cash Flows	$	38,250	$	8,651	$	43,584

(1) During the three months ended March 31, 2016, the Company's cumulative share of pro-rata Tinuum Group income exceeded the amount of its cumulative income recognized due to cash being distributed. As such, the Company recognized $3.4 million as "return on investment".

The following table details the carrying value of the Company's respective equity method investments included within the Equity method investments line item on the Consolidated Balance Sheets and indicates the Company's maximum exposure to loss:



	As of December 31,
(in thousands)	2016		2015
Equity method investment in Tinuum Group	$	—	$	—
Equity method investment in Tinuum Services	3,959		3,968
Equity method investment in RCM6	—		13,264
Total equity method investments	$	3,959	$	17,232

The following tables summarize the assets, liabilities and results of operations of Tinuum Group:



	As of December 31,
(in thousands)	2016		2015
Current assets	$	24,584	$	40,860
Non-current assets	$	83,621	$	90,725
Current liabilities	$	43,117	$	60,987
Non-current liabilities	$	11,456	$	9,412
Redeemable Class B equity	$	18,250	$	30,448
Members deficit attributable to Class A members	$	26,475	$	25,175
Noncontrolling interests	$	8,907	$	5,563



	Years Ended December 31,
(in thousands)	2016			2015			2014
Gross profit	$	92,305		$	108,416		$	89,098
Operating, selling, general and administrative expenses	23,662			23,405			21,501
Income from operations	68,643			85,011			67,597
Other expenses	(8,775		)	(2,203		)	(1,830		)
Class B preferred return	(3,901		)	(6,157		)	(8,707		)
Loss attributable to noncontrolling interest	27,234			10,675			11,023
Net income available to Class A members	$	83,201		$	87,326		$	68,083
ADES equity earnings from Tinuum Group	$	41,650		$	8,651		$	43,584

The following tables summarize the assets, liabilities and results of operations of Tinuum Services:



	As of December 31,
(in thousands)	2016		2015
Current assets	$	278,001	$	186,959
Non-current assets	$	3,426	$	3,704
Current liabilities	$	97,093	$	92,675
Non-current liabilities	$	1,488	$	1,366
Equity	$	7,918	$	7,935
Noncontrolling interests	$	174,928	$	88,687



	Years Ended December 31,
(in thousands)	2016			2015			2014
Gross loss	$	(54,644	)	$	(42,496	)	$	(22,168	)
Operating, selling, general and administrative expenses	134,782			161,456			102,757
Loss from operations	(189,426		)	(203,952		)	(124,925		)
Other expenses	(56		)	(118		)	(62		)
Loss attributable to noncontrolling interest	198,464			213,746			132,237
Net income	$	8,982		$	9,676		$	7,250
ADES equity earnings from Tinuum Services	$	4,491		$	4,838		$	3,625

The following table presents the Company's investment balance, equity earnings and cash distributions in excess of the investment balance for the years ended December 31, 2014 through December 31, 2016 (in thousands):



Description	Date(s)	Investment balance			ADES equity earnings (loss)			Cash distributions		Memorandum Account: Cash distributions and equity loss in (excess) of investment balance
Beginning balance	12/31/2013	$	—		$	—		$	—	$	(12,906	)
ADES proportionate share of net income from Tinuum Group ⁽¹⁾	2014 activity	26,613			26,613			—		—
Recovery of cash distributions in excess of investment balance (prior to cash distributions)	2014 activity	(12,906		)	(12,906		)	—		12,906
Cash distributions from Tinuum Group	2014 activity	(43,584		)	—			43,584		—
Adjustment for current year cash distributions in excess of investment balance	2014 activity	29,877			29,877			—		(29,877		)
Total investment balance, equity earnings (loss) and cash distributions	12/31/2014	$	—		$	43,584		$	43,584	$	(29,877	)
ADES proportionate share of net income from Tinuum Group ⁽¹⁾	2015 activity	$	35,265		$	35,265		$	—	$	—
Recovery of cash distributions in excess of investment balance (prior to cash distributions)	2015 activity	(29,877		)	(29,877		)	—		29,877
Cash distributions from Tinuum Group	2015 activity	(8,651		)	—			8,651		—
Adjustment for current year cash distributions in excess of investment balance	2015 activity	3,263			3,263			—		(3,263		)
Total investment balance, equity earnings (loss) and cash distributions	12/31/2015	$	—		$	8,651		$	8,651	$	(3,263	)
ADES proportionate share of net income from Tinuum Group ⁽¹⁾	2016 activity	$	35,019		$	35,019		$	—	$	—
Recovery of cash distributions in excess of investment balance (prior to cash distributions)	2016 activity	(3,263		)	(3,263		)	—		3,263
Cash distributions from Tinuum Group	2016 activity	(41,650		)	—			41,650		—
Adjustment for current year cash distributions in excess of investment balance	2016 activity	9,894			9,894			—		(9,894		)
Total investment balance, equity earnings and cash distributions	12/31/2016	$	—		$	41,650		$	41,650	$	(9,894	)

(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 Tinuum Group multiplied by the amounts of Net Income available to Class A members as shown in the table above of Tinuum Group's results of operations due to adjustments related to the Class B preferred return and the elimination of Tinuum Group's earnings attributable to RCM6, of which the Company owned 24.95% during the years ended December 31, 2015 and 2014 and for the period from January 1 through March 3, 2016. As noted below, the Company sold its interest in RCM6 on March 3, 2016.