Equity Method Investments

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

The Company’s equity method investments include its joint venture interest in Middlemount and certain other equity method investments.

The table below summarizes the book value of those investments and related financing receivables, which are reported in “Investments and other assets” in the consolidated balance sheets, and the related “(Income) loss from equity affiliates”:


	Book Value at				(Income) Loss from Equity Affiliates
	December 31,				Year Ended December 31,
	2021		2020		2021		2020		2019
	(Dollars in millions)
Equity method investment and financing receivables related to Middlemount	$	62.2	$	24.6	$	(82.1)	$	60.1	$	(9.0)
Other equity method investments	—		—		—		—		5.6
Total equity method investments and financing receivables related to Middlemount	$	62.2	$	24.6	$	(82.1)	$	60.1	$	(3.4)

The Company received cash payments from Middlemount of $43.5 million and $14.7 million during the years ended December 31, 2021 and 2019, respectively. No payments were received from Middlemount during the year ended December 31, 2020.

One of the Company’s Australian subsidiaries and the other shareholder of Middlemount are parties to an agreement, as amended from time to time, to provide a revolving loan (Revolving Loans) to Middlemount. The Company’s participation in the Revolving Loans will not, at any time, exceed its 50% equity interest of the revolving loan limit. The Revolving Loans bear interest at 10% per annum and expire on December 31, 2023. At December 31, 2021, the revolving loan limit was $50 million Australian dollars, and Middlemount had not drawn upon the Revolving Loans. The value of the portion of the Revolving Loans due to the Company’s Australian subsidiary, which is included in the total investment balance, was $46.2 million as of December 31, 2020, with the decrease during the year ended December 31, 2021 primarily attributable to payments made by Middlemount.

As of both December 31, 2021 and 2020, the financing receivables and Revolving Loans are accounted for as in-substance common stock due to the limited fair value attributed to Middlemount’s equity.

During the year ended December 31, 2019, Middlemount received notification that the Australian Taxation Office would no longer pursue an uncertain tax position related to an earlier income tax audit. The related tax reserve was released, resulting in approximately $17 million of income. During the year ended December 31, 2020, the Company established a valuation allowance on Middlemount’s net deferred tax position of approximately $33 million primarily based upon recent cumulative losses. During the year ended December 31, 2021, the Company determined that the valuation allowance was no longer necessary based on recent cumulative earnings and expectation of future earnings. The determination resulted in approximately $33 million of income related to the release of the previously established valuation allowance.

During the year ended December 31, 2021, Middlemount entered into an insurance claim settlement agreement attributable to a business interruption and property damage claim from 2019, which resulted in $12.5 million of income for the Company (on a 50% basis).

During the years ended December 31, 2021, 2020 and 2019, respectively, Middlemount generated revenues of approximately $265 million, $123 million and $160 million (on a 50% basis).

Middlemount had current assets, noncurrent assets, current liabilities and noncurrent liabilities of $83.1 million, $269.9 million, $254.9 million and $79.5 million, respectively, as of December 31, 2021 and $31.0 million, $301.8 million, $273.8 million and $83.5 million, respectively, as of December 31, 2020 (on a 50% basis).