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Equity Method Investments (Tables)
 3 Months Ended
Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Equity Method Investments
The following table summarizes the results of operations of Tinuum Services:
 
 
Three Months Ended March 31,
(in thousands)
 
2020
 
2019
Gross loss
 
$
(22,259
)
 
$
(24,735
)
Operating, selling, general and administrative expenses
 
45,753

 
49,450

Loss from operations
 
(68,012
)
 
(74,185
)
Other expenses
 
(285
)
 
(242
)
Loss attributable to noncontrolling interest
 
71,972

 
78,270

Net income
 
$
3,675

 
$
3,843

ADES equity earnings from Tinuum Services
 
$
1,838

 
$
1,922

The following tables present the Company's investment balance, equity earnings and cash distributions in excess of the investment balance, if any, for the three months ended March 31, 2020 and 2019 (in thousands):
Description
 
Date(s)
 
Investment balance
 
ADES equity earnings (loss)
 
Cash distributions
 
Memorandum Account: Cash distributions and equity earnings in (excess) of investment balance
Beginning balance
 
12/31/2019
 
$
32,280

 
$
—

 
$
—

 
$
—

ADES proportionate share of income from Tinuum Group
 
First Quarter
 
6,438

 
6,438

 
—

 
—

Cash distributions from Tinuum Group
 
First Quarter
 
(13,764
)
 
—

 
13,764

 
—

Total investment balance, equity earnings (loss) and cash distributions
 
3/31/2020
 
$
24,954

 
$
6,438

 
$
13,764

 
$
—

Description
 
Date(s)
 
Investment balance
 
ADES equity earnings (loss)
 
Cash distributions
 
Memorandum Account: Cash distributions and equity earnings in (excess) of investment balance
Beginning balance
 
12/31/2018
 
$
—

 
$
—

 
$
—

 
$
(1,672
)
Impact of adoption of accounting standards (1)
 
First Quarter
 
37,232

 
—

 
—

 
—

ADES proportionate share of income from Tinuum Group
 
First Quarter
 
21,439

 
21,439

 
—

 
—

Recovery of prior cash distributions in excess of investment balance (prior to cash distributions)
 
First Quarter
 
(1,672
)
 
(1,672
)
 
—

 
1,672

Cash distributions from Tinuum Group
 
First Quarter
 
(16,788
)
 
—

 
16,788

 
—

Total investment balance, equity earnings (loss) and cash distributions
 
3/31/2019
 
$
40,211

 
$
19,767

 
$
16,788

 
$
—

(1) Tinuum Group adopted Accounting Standards Codification Topic ("ASC") 606 - Revenue from Contracts with Customers and ASC 842 - Leases as of January 1, 2019. As a result of Tinuum Group’s adoption of these standards, the Company recorded a cumulative adjustment of $27.4 million, net of the impact of income taxes, related to the Company's percentage of Tinuum Group's cumulative effect adjustment that increased the Company's Retained earnings as of January 1, 2019.
The following table details the components of the Company's respective equity method investments included within the Earnings from equity method investments line item on the Condensed Consolidated Statements of Operations:
 
 
Three Months Ended March 31,
(in thousands)
 
2020
 
2019
Earnings from Tinuum Group
 
$
6,438


$
19,767

Earnings from Tinuum Services
 
1,838


1,922

(Loss) earnings from other
 
(3
)

1

Earnings from equity method investments
 
$
8,273

 
$
21,690

The following table details the components of the cash distributions from the Company's respective equity method investments included in the Condensed Consolidated Statements of Cash Flows. Distributions from equity method investees are reported in the Condensed Consolidated Statements of Cash Flows as "Distributions from equity method investees, return on investment" within Operating cash flows.
 
 
Three Months Ended March 31,
(in thousands)
 
2020
 
2019
Distributions from equity method investees, return on investment
 
 
 
 
Tinuum Group
 
$
13,764

 
$
16,788

Tinuum Services
 
3,352

 
2,700

 
 
$
17,116

 
$
19,488

The following table summarizes the results of operations of Tinuum Group:
 
 
Three Months Ended March 31,
(in thousands)
 
2020
 
2019
Gross profit
 
$
5,010

 
$
41,200

Operating, selling, general and administrative expenses
 
12,776

 
6,582

Loss (income) from operations
 
(7,766
)
 
34,618

Other income
 
3,643

 
51

Loss attributable to noncontrolling interest
 
19,271

 
15,776

Net income available to members
 
$
15,148

 
$
50,445

ADES equity earnings from Tinuum Group
 
$
6,438

 
$
19,767