3. Investments

Minda Stoneridge Instruments Ltd.

The Company has a 49% interest in Minda, a company based in India that manufactures electronics, instrumentation equipment and sensors for the motorcycle, commercial vehicle and automotive markets. The investment is accounted for under the equity method of accounting. The Company’s investment in Minda, recorded as a component of investments and other long-term assets, net on the consolidated balance sheets, was $10,131 and $7,952 as of December 31, 2017 and 2016, respectively. Equity in earnings of Minda included in the consolidated statements of operations were $1,636, $1,233 and $608 for the years ended December 31, 2017, 2016 and 2015, respectively.

PST Eletrônica Ltda.

The Company had a 74% controlling interest in PST from December 21, 2011 through May 15, 2017. On May 16, 2017, the Company acquired the remaining 26% noncontrolling interest in PST for $1,500 in cash along with earn-out consideration. The Company will be required to pay additional earn-out consideration, which is not capped, based on PST’s financial performance in either 2020 or 2021. The estimated fair value of the earn-out consideration as of the acquisition date was $10,180, and was based on discounted cash flows utilizing forecasted EBITDA in 2020 and 2021. This fair value measurement is classified within Level 3 of the fair value hierarchy and is based upon Level 3 discounted cash flow analysis using key inputs of forecasted future sales as well as a growth rate reduced by the market required rate of return. The transaction was accounted for as an equity transaction, and therefore no gain or loss was recognized in the statement of operations or comprehensive income. The noncontrolling interest balance on the May 16, 2017 acquisition date was $14,458, of which $31,453 and ($16,995) was related to the carrying value of the investment and foreign currency translation, respectively, and accordingly these amounts were reclassified to additional paid-in capital and accumulated other comprehensive loss, respectively.

The following table sets forth a summary of the change in noncontrolling interest:



Years ended December 31		2017		2016		2015
Noncontrolling interest at beginning of period	$	13,762	$	13,310	$	22,550
Net loss		(130)		(1,887)		(2,207)
Foreign currency translation		826		2,339		(7,033)
Comprehensive income (loss)		696		452		(9,240)
Acquisition of noncontrolling interest		(14,458)		-		-
Noncontrolling interest at end of period	$	-	$	13,762	$	13,310

PST has dividends payable to former noncontrolling interest holders of 22,330 Brazilian real ($6,742) at December 31, 2017, which includes the dividend declared on May 16, 2017 of 9,610 Brazilian real ($3,092) and 1,879 Brazilian real ($567) in monetary correction, and 10,842 Brazilian real ($3,327) at December 31, 2016. The dividend is payable on or before January 1, 2020, and is subject to monetary correction based on the Brazilian National Extended Consumer Price inflation index (“IPCA”). The dividend payable related to PST is recorded within other long-term liabilities on the consolidated balance sheet.