XML 24 R12.htm IDEA: XBRL DOCUMENT
v3.24.1.1.u2

INVESTMENTS | 3 Months Ended
--- | ---
Mar. 31, 2024
Equity Method Investments and Joint Ventures [Abstract] |
INVESTMENTS | 5. INVESTMENTS The following table presents the ownership interests and carrying values of our investments:
|  |  |  |  | Carrying Value
| Investment |  | Ownership Percentage |  | March 31, 2024 |  | December 31, 2023
Intermodal Finance I, Ltd. | Equity method |  | 51.0% |  | $ | — |  |  | $ | — |
Long Ridge Energy & Power LLC (1) | Equity method |  | 50.1% |  | — |  |  | — |
Long Ridge West Virginia LLC | Equity method |  | 50.1% |  | 6,713 |  |  | 6,825 |
GM-FTAI Holdco LLC | Equity method |  | See below |  | 51,255 |  |  | 55,740 |
Clean Planet Energy USA LLC | Equity method |  | 50.0% |  | 10,117 |  |  | 10,136 |
|  |  |  |  | $ | 68,085 |  |  | $ | 72,701 |
________________________________________________________ (1) The carrying value of $(54.8) million and $(29.3) million as of March 31, 2024 and December 31, 2023, respectively, is included in Other liabilities in the Consolidated Balance Sheets. We did not recognize any other-than-temporary impairments for the three months ended March 31, 2024 and 2023. The following table presents our proportionate share of equity in (losses) earnings:
| Three Months Ended March 31, |  |
| 2024 |  | 2023 |  |  |  |
Intermodal Finance I, Ltd. | $ | 9 |  |  | $ | 21 |  |  |  |  |
Long Ridge Energy & Power LLC | (6,675) |  |  | 7,761 |  |  |  |  |
Long Ridge West Virginia LLC | (362) |  |  | — |  |  |  |  |
GM-FTAI Holdco LLC | (4,486) |  |  | (2,341) |  |  |  |  |
Clean Planet Energy USA LLC | (388) |  |  | (1,075) |  |  |  |  |
Total | $ | (11,902) |  |  | $ | 4,366 |  |  |  |  |
Equity Method Investments Intermodal Finance I, Ltd. In 2012, we acquired a 51% non-controlling interest in Intermodal Finance I, Ltd. (“Intermodal”). Intermodal is governed by a board of directors, and its shareholders have voting rights through their equity interests. As such, Intermodal is not within the scope of ASC 810-20 and should be evaluated for consolidation under the voting interest model. Due to the existence of substantive participating rights of the 49% equity investor, including the joint approval of material operating and capital decisions, such as material contracts and capital expenditures consistent with ASC 810-10-25-11, we do not have unilateral rights over this investment and, therefore, we do not consolidate Intermodal but account for this investment in accordance with the equity method. We do not have a variable interest in this investment as none of the criteria of ASC 810-10-15-14 were met. As of March 31, 2024, Intermodal owns a portfolio of approximately 173 shipping containers subject to multiple operating leases. Long Ridge Energy & Power LLC In December 2019, Ohio River Shareholder LLC (“ORP”), a wholly owned subsidiary, contributed its equity interests in Long Ridge into Long Ridge Energy & Power LLC and sold a 49.9% interest (the “Long Ridge Transaction”) for $150 million in cash, plus an earn out. We no longer have a controlling interest in Long Ridge but still maintain significant influence through our retained interest and, therefore, now account for this investment in accordance with the equity method. Following the sale, we deconsolidated ORP, which held the assets of Long Ridge. In addition to our equity method investment, in October 2022 we entered into a shareholder loan agreement maturing on October 15, 2023 and accruing paid-in-kind (“PIK”) interest at a 13% rate. During 2023, the maturity date was extended to May 1, 2032. As of March 31, 2024 and December 31, 2023, the balance of the note receivable was $73.3 million and $71.0 million, respectively, recorded as part of the Long Ridge investment in Other liabilities on the Consolidated Balance Sheets. The tables below present summarized financial information for Long Ridge Energy & Power LLC:
| (Unaudited) |  |
| March 31, 2024 |  | December 31, 2023
Balance Sheet |  |  |
Assets |  |  |
Current assets: |  |  |
Cash and cash equivalents | $ | 3,185 |  |  | $ | 3,362 |
Restricted cash | 20,455 |  |  | 23,691 |
Accounts receivable, net | 7,052 |  |  | 5,633 |
Other current assets | 6,226 |  |  | 7,357 |
Total current assets | 36,918 |  |  | 40,043 |
Property, plant, and equipment, net | 825,901 |  |  | 828,232 |
Intangible assets, net | 4,085 |  |  | 4,180 |
Goodwill | 86,460 |  |  | 86,460 |
Other assets | 4,583 |  |  | 4,041 |
Total assets | $ | 957,947 |  |  | $ | 962,956 |
Liabilities |  |  |
Current liabilities: |  |  |
Accounts payable and accrued liabilities | $ | 42,333 |  |  | $ | 49,538 |
Debt, net | 4,450 |  |  | 4,450 |
Derivative liabilities | 47,002 |  |  | 39,891 |
Other current liabilities | 2,752 |  |  | 2,136 |
Total current liabilities | 96,537 |  |  | 96,015 |
Debt, net | 711,293 |  |  | 699,372 |
Derivative liabilities | 396,715 |  |  | 360,710 |
Other liabilities | 6,986 |  |  | 4,941 |
Total liabilities | 1,211,531 |  |  | 1,161,038 |
Equity |  |  |
Total equity | (253,584) |  |  | (198,082) |
Total liabilities and equity | $ | 957,947 |  |  | $ | 962,956 |
| Three Months Ended March 31, |  |
Income Statement | 2024 |  | 2023 |  |  |  |
Revenue | $ | 29,306 |  |  | $ | 56,405 |  |  |  |  |
Expenses |  |  |  |  |  |  |
Operating expenses | 13,860 |  |  | 13,214 |  |  |  |  |
Depreciation and amortization | 12,007 |  |  | 13,364 |  |  |  |  |
Interest expense | 16,782 |  |  | 14,440 |  |  |  |  |
Total expenses | 42,649 |  |  | 41,018 |  |  |  |  |
Total other (expense) income | (13) |  |  | 105 |  |  |  |  |
Net (loss) income | $ | (13,356) |  |  | $ | 15,492 |  |  |  |  |
GM-FTAI Holdco LLC In September 2021, we acquired 1% of the Class A shares and 50% of the Class B shares of GM-FTAI Holdco LLC for $52.5 million. GM-FTAI Holdco LLC owns 100% interest in Gladieux Metals Recycling LLC (“GMR”) and Aleon Renewable Metals LLC (“Aleon”). GMR specializes in recycling spent catalyst produced in the petroleum refining industry. Aleon plans to develop a lithium-ion battery recycling business across the United States. Each planned location will collect, discharge and disassemble lithium-ion batteries to extract various metals in high-purity form for resale into the lithium-ion battery production market. Aleon and GMR are governed by separate boards of directors. Our ownership of Class A and B shares in GM-FTAI Holdco LLC provides us with 1% and 50% economic interest in GMR and Aleon, respectively. We account for our investment in GM-FTAI Holdco LLC as an equity method investment as we have significant influence through our ownership of Class A and Class B shares of GM-FTAI Holdco LLC. On June 15, 2022, we exchanged our Class B shares which gave us economic interest in Aleon for an additional 20% interest in Class A shares. In addition, we also terminated our credit agreements with GMR and Aleon in exchange for an approximate 8.5% of additional interest in Class A shares of GM-FTAI Holdco LLC. As a result of these exchange transactions, we own approximately 27% of GM-FTAI Holdco LLC, which owns 100% of both GMR and Aleon. Clean Planet Energy USA LLC In November 2021, we acquired 50% of the Class A shares of Clean Planet Energy USA LLC (“Clean Planet” or “CPE”) with an initial investment of $1.0 million. CPE intends on building waste plastic-to-fuel plants in the United States. The plants will convert various grades of non-recyclable waste plastic to renewable diesel in the form of jet fuel, diesel, naphtha, and low sulfur fuel oil. We account for our investment in CPE as an equity method investment as we have significant influence through our ownership of Class A shares. Long Ridge West Virginia LLC In November 2023, we sold a 49.9% interest in Long Ridge West Virginia LLC (“Long Ridge WV”), previously a wholly owned subsidiary, for $7.5 million in cash. Long Ridge WV is a VIE as defined in U.S. GAAP, but we are not the primary beneficiary. Following the sale, we no longer have a controlling interest in Long Ridge WV, but we still maintain significant influence through our retained interest and account for this investment in accordance with the equity method. Long Ridge WV was formed to build an energy generating property in West Virginia similar to that of Long Ridge Energy & Power LLC. On the deconsolidation, no gain was recorded as all the assets consist of unproved undeveloped gas properties. We recorded our investment in the legal entity at the cost basis of $7.2 million as of November 17, 2023. Equity Investments E-Circuit Motors, Inc. E-Circuit Motors Inc. (“ECM”) is a software company concentrating on the development and sale of printer circuit board stator motors and also utilizes proprietary software to develop and test such motors in a virtual environment. On March 6, 2024, the Company invested $5.0 million for 166,667 shares of Series D preferred equity, as well as 166,667 warrants of common stock at $0.01 per share in ECM. The preferred shares are convertible to common shares at the option of the investor on a one-for-one basis. We do not exercise significant influence over the investment and will record the preferred share investment as an equity security. The warrants are exercisable only if certain conditions are met over the next two years after the date of the investment. The warrants will be accounted for as equity securities. The value of the Series D preferred equity and warrants as of the date of investment were determined to be $2.5 million each, based on relative fair value. ECM is a private company with no readily determinable fair values; if additional third-party information becomes available we will adjust the value of the investments accordingly. As of March 31, 2024, the investment of $5.0 million was recorded in Other assets on the Consolidated Balance Sheet.

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 The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org//323/tableOfContent + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration