4. Investments

Minda Stoneridge Instruments Ltd.

The Company has a 49% interest in MSIL, 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 MSIL, recorded as a component of investments and other long-term assets, net on the consolidated balance sheets, was $11,288 and $10,131 as of December 31, 2018 and 2017, respectively. Equity in earnings of MSIL included in the consolidated statements of operations were $2,038, $1,636 and $1,233 for the years ended December 31, 2018, 2017 and 2016, 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 preliminary 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. The Company’s statement of operations for the years ended December 31, 2018 and 2017 included $(156) and $2,632, respectively, of (income) expense for the fair value adjustment for earn-out consideration in SG&A expense. See Note 10 for the fair value and foreign currency adjustments of the earn-out consideration. This fair value measurement is classified within Level 3 of the fair value hierarchy. 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:



Year ended December 31	2017		2016
Noncontrolling interest at beginning of period	$	13,762	$	13,310
Net loss		(130)		(1,887)
Foreign currency translation		826		2,339
Comprehensive income		696		452
Acquisition of noncontrolling interest		(14,458)		-
Noncontrolling interest at end of period	$	-	$	13,762

PST has dividends payable to former noncontrolling interest holders of R$23,204 Brazilian real ($5,980) and R$22,330 Brazilian real ($6,742) as of December 31, 2018 and 2017, respectively. The dividends payable balance includes monetary correction of R$2,752 Brazilian real ($709) and R$1,879 Brazilian real ($567) as of December 31, 2018 and 2017, respectively. 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 current liabilities on the consolidated balance sheet.

Other Investments

In December 2018, the Company entered into an agreement to make a $10,000 investment in a fund managed by Autotech Ventures (“Autotech”), a venture capital firm focused on ground transportation technology. The Company’s $10,000 investment in the Autotech fund will be contributed over the expected ten year life of the fund. The fourth quarter of 2018 contribution of $437 to the Autotech Ventures fund was recorded in investments and other long-term assets in the consolidated balance sheet as of December 31, 2018.