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Business Acquisitions and Investments | 3 Months Ended
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Mar. 31, 2023
Business Acquisitions and Investments [Abstract] |
Business Acquisitions and Investments | Note 3. Business Acquisitions and Investments 2022 Increase in Equity Investment Investment in Foshan Che Yijia New Energy Technology Co., Ltd. In August 2019, we acquired an approximate 29% minority interest in Foshan Che Yijia New Energy Technology Co., Ltd. (“CYJ”) for approximately $5.1 million. CYJ is a manufacturer of automotive electric air conditioning compressors and is located in China. We determined, at that time, that due to a lack of a voting majority and other qualitative factors, we do not control the operations of CYJ and accordingly, our investment in CYJ would be accounted for under the equity method of accounting. In October 2022, we acquired an additional 3.55% equity interest in CYJ for RMB 1.7 million (approximately $242,000), increasing our minority ownership interest in CYJ from an approximate interest of 29% to 33%. The additional acquired ownership interest in CYJ was paid for in cash funded by borrowings under our Credit Agreement with JPMorgan Chase Bank, N.A., as agent. We will continue to account for our minority interest in CYJ using the equity method of accounting. 2022 Business Acquisitions Acquisition of Capital Stock of Kade Trading GmbH (“Kade”) In October 2022, we acquired 100% of the capital stock of Kade Trading GmbH (“Kade”) headquartered in Glinde, Germany for Euros 2.7 million (approximately $2.7 million), inclusive of closing balance sheet adjustments, plus a Euros 0.5 million (approximately $0.5 million) earn-out based upon Kade’s performance in 2024 and 2025. Kade is a supplier across Europe of mobile temperature control components to commercial vehicle, passenger car and specialty equipment markets and has been a distributor of products from our joint ventures including electric compressors, hose assemblies and receiver dryers, with annual sales of approximately $6 million. The acquired Kade business, reported as part of our Engineered Solutions segment, was paid for with cash. The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values (in thousands):
Purchase price |  |  |  |  | $ | 3,176 |
Assets acquired and liabilities assumed: |  |  |  |  |  |  |
Receivables |  | $ | 790 |  |  |  |  |
Inventory |  |  | 829 |  |  |  |  |
Other current assets (1) |  |  | 1,003 |  |  |  |  |
Property, plant and equipment, net |  |  | 63 |  |  |  |  |
Operating lease right-of-use assets |  |  | 401 |  |  |  |  |
Intangible assets |  |  | 2,395 |  |  |  |  |
Goodwill |  |  | 766 |  |  |  |  |
Current liabilities |  |  | (1,977 | ) |  |  |  |
Noncurrent operating lease liabilities |  |  | (328 | ) |  |  |  |
Deferred income taxes |  |  | (766 | ) |  |  |  |
Net assets acquired |  |  |  |  |  | $ | 3,176 |
| (1) | The other current assets balance includes $1 million of cash acquired.
Intangible assets acquired of $2.4 million consist of customer relationships that will be amortized on a straight-line basis over the estimated useful life of 15 years. Incremental revenues from the acquired Kade business included in our consolidated statement of operations for the three months ended March 31, 2023 were $1.7 million.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI https://asc.fasb.org/topic&trid=2303972 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 5 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472 + Details
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