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Investments in Unconsolidated Entities | 12 Months Ended
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Aug. 31, 2016
Investments in Unconsolidated Entities |
Investments in Unconsolidated Entities |
| 4. |  | INVESTMENTS IN UNCONSOLIDATED ENTITIES
The Company’s ownership interest and carrying amounts of investments in unconsolidated entities as of August 31, 2016 and 2015 consist of the following (in thousands, except percentages):
|  | August 31, 2016 |  | August 31, 2015 |
|  | Percentage |  |  |  |  | Percentage |  |  |  |
|  | Ownership |  | Amount |  | Ownership |  | Amount |
Equity method investments: |  |  |  |  |  |  |  |  |  |  |
SILQ (Malaysia) Sdn. Bhd. (“SILQ”) |  | 33 | % | $ | 50 |  | 33 | % | $ | 129 |
Xurui Guangdian Co., Ltd. (“China SemiLEDs”) |  | 49 | % |  | — |  | 49 | % |  | — |
Cost method investments |  | Various |  |  | 1,318 |  | Various |  |  | 1,885 |
Total investments in unconsolidated entities |  |  |  | $ | 1,368 |  |  |  | $ | 2,014 |
There were no dividends received from unconsolidated entities through August 31, 2016. Equity Method Investments The Company and the other investor in SILQ, a joint venture in Malaysia which is engaged in the design, manufacture and sale of lighting fixtures and systems, each owned a 50% equity interest in SILQ in 2009. In January 2014, the Company participated in SILQ’s capital increase and contributed $76 thousand. Following the capital increase, the Company’s equity interest in SILQ was diluted from 50% to 49%, and consequently, the Company recognized a gain on dilution of its investment of $26 thousand. The dilution gain was recognized as additional paid in capital in the consolidated statement of changes in equity. In April 2014, the Company sold part of its equity interest in SILQ to the other investor for a cash consideration of $114 thousand and recognized a gain on sale of investment of $37 thousand. The gain was reported in the consolidated statements of operations in equity in losses from unconsolidated entities. Upon consummation of the sale, the Company’s equity interest in SILQ was reduced from 49% to 33%. The Company subsequently invested $130 thousand in SILQ’s capital increase in April 2014 and its equity interest remains unchanged. SILQ applied for dissolution in May 2016 and was in the process of being dissolved as of August 31, 2016. The carrying amount of the Company's investment in SILQ was reduced to its proportionate share of the net realizable value reported by SILQ. The Company still owns a 49% equity interest in China SemiLEDs. However, this investment has a carrying amount of zero as a result of a previously recognized impairment. Cost Method Investments In the fourth quarter of fiscal 2016, management reviewed the operating performance and financial condition of the investees based on their latest available financial statements or other publicly available information or the investees’ plan of liquidation. Management considered the extent and duration of time to which the fair value of the investment has been less than its carrying amount, the financial condition of the investees and the prospect for recovery in the near term, and recognized an other-than-temporary impairment loss of $317 thousand and $280 thousand on its investments in LumenMax and Nanoteco respectively for the year ended August 31, 2016. No other-than-temporary impairment charge was recognized in the year ended August 31, 2015. The fair values of the Company’s cost method investments are not readily available. All cost method investments are assessed for impairment when events or changes in circumstances indicate that the carrying amounts may not be recoverable.

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- Definition The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is. It also includes certain corporate joint ventures are partially owned by the reporting entity or its wholly-owned subsidiaries, and certain noncontrolled corporations where reporting entities can exercise significant influence over the operating and financial policies of joint ventures. Such investments are accounted for under the equity and cost method of accounting. + References No definition available. + Details
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