Equity-Method Investments

12 Months Ended

Dec. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

In October 2014, we acquired a 99.9% membership interest in a limited liability company managed by U.S. Bancorp Community Development Corporation with an initial equity contribution of $4.1 million. We made additional equity contributions to the entity of $22.9 million in 2015 and $22.8 million in 2016. We were obligated to make $49.8 million of total contributions to the entity over a two-year period ended October 2016, all of which had been made as of December 31, 2016.

This investment generated new markets tax credits under the New Markets Tax Credit Program (“NMTC Program”). The NMTC Program was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities.

While U.S. Bancorp Community Development Corporation exercised management control over the limited liability company, due to the economic interest we held in the entity, we determined our ownership portion of the entity was appropriately accounted for using the equity method.

As of December 31, 2017 and 2016 no amounts related to this equity-method investment were recorded in our Consolidated Balance Sheets.

The following amounts related to this equity-method investment were recorded in our Consolidated Statements of Operations (in thousands):



Year Ended December 31,	2017		2016		2015
Asset impairments to write investment down to fair value	$	—	$	13,992	$	16,521
Our portion of the partnership’s operating losses	—		8,262		6,929
Non-cash interest expense related to the amortization of the discounted fair value of future equity contributions	—		185		674
Tax benefits and credits generated	—		28,530		30,831