XML 39 R28.htm IDEA: XBRL DOCUMENT
v3.21.2

Equity Method Investments (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2021
Equity Method Investments and Joint Ventures [Abstract] |
Schedule of Equity Method Investments | The following table summarizes the results of operations of Tinuum Group:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Gross (loss) profit |  | $ | (3,226) |  |  | $ | 101 |  |  | $ | 8,269 |  |  | $ | 11,979 |
Operating, selling, general and administrative expenses |  | 12,077 |  |  | 13,781 |  |  | 38,308 |  |  | 38,476 |
Loss from operations |  | (15,303) |  |  | (13,680) |  |  | (30,039) |  |  | (26,497) |
Other income (expenses), net |  | 6,027 |  |  | 5,739 |  |  | 10,030 |  |  | 11,526 |
Loss attributable to noncontrolling interest |  | 34,551 |  |  | 25,023 |  |  | 99,167 |  |  | 63,117 |
Net income available to members |  | $ | 25,275 |  |  | $ | 17,082 |  |  | $ | 79,158 |  |  | $ | 48,146 |
ADES equity earnings from Tinuum Group |  | $ | 19,975 |  |  | $ | 7,260 |  |  | $ | 55,462 |  |  | $ | 20,462 |
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 and nine months ended September 30, 2021 and 2020 (in thousands):
Description |  | Date(s) |  | Investment balance |  | ADES equity earnings |  | Cash distributions |  | Memorandum Account: Cash distributions and equity earnings in (excess) of investment balance
Beginning balance |  | 12/31/2020 |  | $ | 3,387 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
ADES proportionate share of income from Tinuum Group |  | First Quarter |  | 10,755 |  |  | 10,755 |  |  | — |  |  | — |
Cash distributions from Tinuum Group |  | First Quarter |  | (19,749) |  |  | — |  |  | 19,749 |  |  | — |
Adjustment for current year cash distributions in excess of investment balance |  | First Quarter |  | 5,607 |  |  | 5,607 |  |  | — |  |  | (5,607) |
Total investment balance, equity earnings and cash distributions |  | 3/31/2021 |  | — |  |  | $ | 16,362 |  |  | $ | 19,749 |  |  | (5,607) |
ADES proportionate share of income from Tinuum Group |  | Second Quarter |  | 12,146 |  |  | $ | 12,146 |  |  | $ | — |  |  | — |
Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) |  | Second Quarter |  | (5,607) |  |  | (5,607) |  |  | — |  |  | 5,607 |
Cash distributions from Tinuum Group |  | Second Quarter |  | (19,125) |  |  | — |  |  | 19,125 |  |  | — |
Adjustment for current year cash distributions in excess of investment balance |  | Second Quarter |  | 12,586 |  |  | 12,586 |  |  | — |  |  | (12,586) |
Total investment balance, equity earnings and cash distributions |  | 6/30/2021 |  | $ | — |  |  | $ | 19,125 |  |  | $ | 19,125 |  |  | $ | (12,586) |
ADES proportionate share of income from Tinuum Group |  | Third Quarter |  | $ | 10,742 |  |  | $ | 10,742 |  |  | $ | — |  |  | $ | — |
Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) |  | Third Quarter |  | (12,586) |  |  | (12,586) |  |  | — |  |  | 12,586 |
Cash distributions from Tinuum Group |  | Third Quarter |  | (19,975) |  |  | — |  |  | 19,975 |  |  | — |
Adjustment for current year cash distributions in excess of investment balance |  | Third Quarter |  | 21,819 |  |  | 21,819 |  |  |  |  | (21,819) |
Total investment balance, equity earnings and cash distributions |  | 9/30/2021 |  | $ | — |  |  | $ | 19,975 |  |  | $ | 19,975 |  |  | $ | (21,819) |
Description |  | Date(s) |  | Investment balance |  | ADES equity earnings |  | Cash distributions |  |
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 and cash distributions |  | 3/31/2020 |  | 24,954 |  |  | $ | 6,438 |  |  | $ | 13,764 |  |  |
ADES proportionate share of income from Tinuum Group |  | Second Quarter |  | $ | 6,764 |  |  | $ | 6,764 |  |  | $ | — |  |  |
Cash distributions from Tinuum Group |  | Second Quarter |  | (13,600) |  |  | — |  |  | 13,600 |  |  |
Total investment balance, equity earnings and cash distributions |  | 6/30/2020 |  | 18,118 |  |  | $ | 6,764 |  |  | $ | 13,600 |  |  |
ADES proportionate share of income from Tinuum Group |  | Third Quarter |  | $ | 7,260 |  |  | $ | 7,260 |  |  | $ | — |  |  |
Cash distributions from Tinuum Group |  | Third Quarter |  | (7,862) |  |  | — |  |  | 7,862 |  |  |
Total investment balance, equity earnings and cash distributions |  | 9/30/2020 |  | $ | 17,516 |  |  | $ | 7,260 |  |  | $ | 7,862 |  |  |
The following table summarizes the results of operations of Tinuum Services:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Gross loss |  | $ | (20,389) |  |  | $ | (22,764) |  |  | $ | (61,552) |  |  | $ | (65,441) |
Operating, selling, general and administrative expenses |  | 42,346 |  |  | 42,435 |  |  | 144,068 |  |  | 131,703 |
Loss from operations |  | (62,735) |  |  | (65,199) |  |  | (205,620) |  |  | (197,144) |
Other income (expenses), net |  | 3,204 |  |  | (363) |  |  | 2,810 |  |  | (978) |
Loss attributable to noncontrolling interest |  | 63,977 |  |  | 70,075 |  |  | 215,779 |  |  | 209,118 |
Net income |  | $ | 4,446 |  |  | $ | 4,513 |  |  | $ | 12,969 |  |  | $ | 10,996 |
ADES equity earnings from Tinuum Services |  | $ | 2,223 |  |  | $ | 2,257 |  |  | $ | 6,485 |  |  | $ | 5,498 |
The following table details the carrying value of the Company's respective equity method investments included in the Equity method investments line item on the Condensed Consolidated Balance Sheets and indicates the Company's maximum exposure to loss:
|  | As of
(in thousands) |  | September 30, 2021 |  | December 31, 2020
Equity method investment in Tinuum Group |  | $ | — |  |  | $ | 3,387 |
Equity method investment in Tinuum Services |  | 2,824 |  |  | 4,242 |
Equity method investment in other |  | 60 |  |  | 63 |
Total equity method investments |  | $ | 2,884 |  |  | $ | 7,692 |
The following table details the components of the Company's respective equity method investments included in the Earnings 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) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Earnings from Tinuum Group |  | $ | 19,975 |  |  | $ | 7,260 |  |  | $ | 55,462 |  |  | $ | 20,462 |
Earnings from Tinuum Services |  | 2,223 |  |  | 2,257 |  |  | 6,485 |  |  | 5,498 |
(Loss) earnings from other |  | (3) |  |  | 1 |  |  | (3) |  |  | (1) |
Earnings from equity method investments |  | $ | 22,195 |  |  | $ | 9,518 |  |  | $ | 61,944 |  |  | $ | 25,959 |
The following table details the components of the cash distributions from the Company's respective equity method investments included as a component of cash flows from operating activities and investing activities 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 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" as a component of cash flows from investing activities.
|  | Nine Months Ended September 30,
(in thousands) |  | 2021 |  | 2020
Distributions from equity method investees, return on investment |  |  |  |
Tinuum Group |  | $ | 14,142 |  |  | $ | 35,226 |
Tinuum Services |  | 7,902 |  |  | 7,002 |
|  | $ | 22,044 |  |  | $ | 42,228 |
Distributions from equity method investees in excess of investment basis |  |  |  |
Tinuum Group |  | $ | 44,707 |  |  | $ | — |
|  | $ | 44,707 |  |  | $ | — |

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of equity method investments including, but not limited to, name of each investee or group of investments, percentage ownership, difference between recorded amount of an investment and the value of the underlying equity in the net assets, and summarized financial information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571 + Details
Name: | us-gaap_EquityMethodInvestmentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration