Investment in Joint Venture

6 Months Ended

Jun. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

We own a 49% investment in Wuxi Weifu Autocam Precision Machinery Company, Ltd. (the “JV”), a joint venture located in Wuxi, China. The JV is jointly controlled and managed, and we account for it under the equity method.

The following table shows changes in our investment in the JV.


Balance as of December 31, 2019	$	21,755
Share of earnings (loss)	656

Foreign currency translation loss	(307)
Balance as of June 30, 2020	$	22,104

During the fourth quarter of 2018, as a result of changing market conditions, the fair value of the JV was assessed, and we recorded an impairment of $16.6 million against our investment in the JV. The fair value assessment was significantly affected by changes in our assessment of future growth rates. During the first quarter of 2020, the goodwill impairment testing trigger caused us to test the JV for impairment as well. Based on our analysis, no impairment charge was deemed necessary. It is reasonably possible that material deviation of future performance from the estimates used in the March 31, 2020, impairment test could result in additional impairment to our investment in the JV in subsequent periods.

We recognized sales to the JV of less than $0.1 million and less than $0.1 million during the three and six months ended June 30, 2020, respectively, and less than $0.1 million and $0.1 million during the three and six months ended June 30, 2019, respectively.