Investments

Equity Method Investments

The Company’s equity method investments include its joint venture interest in Middlemount and certain other equity method investments.

The table below summarizes the book value of those investments and related financing receivables, which are reported in “Investments and other assets” in the consolidated balance sheets, and the related “Income from equity affiliates”:



					Successor						Predecessor
	Book Value at				Income from Equity Affiliates
	December 31, 2018		December 31, 2017		Year Ended December 31, 2018			April 2 through December 31, 2017			January 1 through April 1, 2017			Year Ended December 31, 2016
	(Dollars in millions)
Equity method investment and financing receivables related to Middlemount	$	45.0	$	82.1	$	(69.3	)	$	(48.6	)	$	(17.4	)	$	(22.6	)
Other equity method investments	0.9		1.7		1.2			(0.4		)	2.4			6.4
Total equity method investments and financing receivables related to Middlemount	$	45.9	$	83.8	$	(68.1	)	$	(49.0	)	$	(15.0	)	$	(16.2	)

As noted in Note 2. “Emergence from the Chapter 11 Cases and Fresh Start Reporting,” the carrying value of the equity method investments and financing receivables related to Middlemount was adjusted to fair value in connection with fresh start reporting based on the net present value of future cash flows associated with the Company’s 50% equity interest in Middlemount. As of December 31, 2018, the financing receivables are accounted for as in-substance common stock due to the limited fair value attributed to Middlemount’s equity.

The Company received cash payments from Middlemount of $106.7 million, $48.1 million and $32.7 million during the year ended December 31, 2018, the period April 2 through December 31, 2017 and the period January 1 through April 1, 2017, respectively.

During the year ended December 31, 2018 the Company determined that a valuation allowance on Middlemount’s net deferred tax position was no longer necessary based on recent cumulative earnings and expectation of future earnings. The determination resulted in approximately $9 million of income which was more than offset by a tax reserve of approximately $17 million due to an uncertain tax position relating to an ongoing income tax audit of Middlemount.

During the year ended December 31, 2018, the period April 2 through December 31, 2017, the period January 1 through April 1, 2017, and the year ended December 31, 2016 Middlemount generated revenues of approximately $271 million, $193 million, $60 million and $183 million (on a 50% basis).

Middlemount had current assets, noncurrent assets, current liabilities and noncurrent liabilities of $33.6 million, $181.8 million, $187.9 million and $35.8 million, respectively, as of December 31, 2018 and $61.7 million, $232.2 million, $313.9 million and $41.2 million, respectively, as of December 31, 2017 (on a 50% basis).