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Business Acquisitions and Investments | 6 Months Ended
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Jun. 30, 2024
Business Acquisitions and Investments [Abstract] |
Business Acquisitions and Investments | Note 3. Business Acquisitions and Investments Investment in Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. In April 2014, we formed Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. (“Gwo Yng”), a 50/50 joint venture with Gwo Yng Enterprise Co., Ltd., a China-based manufacturer of air conditioner accumulators, filter driers, hose assemblies and switches. We acquired our 50% interest in the joint venture for approximately $14 million. In March 2018, we acquired an additional 15% equity interest in the joint venture for Chinese yuan renminbi 26,475,583 (approximately $4.2 million), thereby increasing our equity interest in the joint venture to 65%. While we increased our equity interest in the joint venture to 65%, the minority shareholder maintained substantive participating rights that allowed it to participate in certain significant financial and operating decisions that occur in the ordinary course of business. As a result, we continued to account for our investment in the joint venture under the equity method of accounting. In July 2023, we acquired an additional 15% equity interest in the joint venture for Chinese yuan renminbi 27,378,290 (approximately $4 million), thereby increasing our equity interest in Gwo Yng to 80%. In connection with the transaction, we amended and restated the charter documents of Gwo Yng to remove all minority shareholder substantive participating rights, giving SMP control of Gwo Yng. As a result, as of the closing date of the transaction, Gwo Yng was accounted for as a business combination achieved in stages (“a step acquisition”). Accordingly, commencing on the closing of the transaction, we reported the results of Gwo Yng on a consolidated basis with the minority ownership interest reported as a noncontrolling interest. The following table summarizes the allocation of the total step acquisition purchase consideration to the identifiable assets acquired and liabilities assumed based on their fair values (in thousands):
Total purchase consideration (a) |  |  |  |  | $ | 21,725 |
Assets acquired and liabilities assumed: |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 6,779 |  |  |  |  |
Receivables |  |  | 5,912 |  |  |  |  |
Inventory |  |  | 5,945 |  |  |  |  |
Other current assets |  |  | 528 |  |  |  |  |
Property, plant and equipment, net |  |  | 2,924 |  |  |  |  |
Operating lease right-of-use assets |  |  | 4,372 |  |  |  |  |
Intangible assets (b) |  |  | 532 |  |  |  |  |
Goodwill |  |  | 2,208 |  |  |  |  |
Long term investments and other assets |  |  | 7,257 |  |  |  |  |
Current liabilities |  |  | (6,004 | ) |  |  |  |
Noncurrent operating lease liabilities |  |  | (3,455 | ) |  |  |  |
Subtotal |  |  |  |  |  |  | 26,998 |
Fair value of acquired noncontrolling interest |  |  |  |  |  |  | (5,273 | )
Total purchase consideration allocated to net assets acquired |  |  |  |  |  | $ | 21,725 |
| (a) | Total purchase consideration is the sum of the fair value of the previously held equity investment interest in Gwo Yng of $17.7 million and the cash paid of $4 million for the acquisition of the additional 15% equity ownership interest.
| (b) | Intangible assets consists of customer relationships of $0.4 million and capitalized software of $0.1 million.
Intangible assets of $0.4 million consisting of customer relationships is amortized on a straight-line basis over the estimated useful life of 10 years. Goodwill of $2.2 million was allocated to the Temperature Control and Engineered Solutions segments in the amounts of $1.2 million and $1 million, respectively. The goodwill reflects relationships, business specific knowledge and the replacement cost of an assembled workforce associated with personal reputations

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