Affiliated Companies

3 Months Ended

Mar. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Affiliated Companies

Affiliated CompaniesAt March 31, 2023 and December 31, 2022, the aggregate carrying amount of our investment in affiliated companies that are accounted for under the equity method was $200.9 million and $197.0 million, respectively, and the aggregate carrying amount of our investment in affiliated companies that are not accounted for under the equity method was $7.9 million and $7.9 million at March 31, 2023 and December 31, 2022, respectively. We have elected to record these investments, for which fair value was not readily determinable, at cost, less impairment, adjusted for subsequent observable price changes. We test these investments for impairment whenever circumstances indicate that the carrying value of the investments may not be recoverable.

Our purchases from, and royalty payments made to, affiliates totaled $44.2 million for the three months ended March 31, 2023, as compared to $58.5 million for the same period in 2022. As of March 31, 2023 and December 31, 2022, the payable balance due to affiliates was $30.3 million and $31.2 million, respectively. The majority of these transactions related to a distributorship agreement with Daikyo Seiko, LTD ("Daikyo") that allows us to purchase and re-sell Daikyo products.

Sales to affiliates were $3.3 million for the three months ended March 31, 2023, as compared to $4.0 million for the same period in 2022. As of March 31, 2023 and December 31, 2022, the receivable balance due from affiliates was $2.5 million and $2.2 million, respectively.

Please refer to Note 7, Affiliated Companies, to the consolidated financial statements in our 2022 Annual Report for additional details.