Equity Investment

6 Months Ended

Jun. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

3.	Equity Investment

We account for our 49% investment in OCI Wyoming LLC (“OCI Wyoming”) using the equity method of accounting. OCI Wyoming distributed $10.9 million and $13.9 million to us in the three months ended June 30, 2015 and 2014, respectively, and OCI Wyoming distributed $21.8 million and $25.6 million to us in the six months ended June 30, 2015 and 2014, respectively.

The difference between the amount at which our investment in OCI Wyoming is carried and the amount of underlying equity in OCI Wyoming’s net assets was $157.6 million and $162.7 million as of June 30, 2015 and December 31, 2014, respectively. This excess basis relates to plant, property and equipment and right to mine assets. The excess basis difference that relates to property, plant and equipment is being amortized into income using the straight-line method over a weighted average of 28 years. The excess basis difference that relates to right to mine assets is being amortized into income using the units of production method. Our equity in the earnings of OCI Wyoming is summarized as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(Unaudited)						(Unaudited)
Income allocation to NRP’s equity interests	$	12,786		$	10,851		$	26,513		$	22,127
Amortization of basis difference		(1,187	)		(1,450	)		(2,391	)		(2,947	)

Equity in earnings of unconsolidated investment	$	11,599		$	9,401		$	24,122		$	19,180

The results of OCI Wyoming’s operations for the three and six months ended June 30, 2015 and 2014 are summarized as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(Unaudited)				(Unaudited)
Sales	$	122,200	$	112,970	$	242,630	$	229,211
Gross profit		31,091		27,604		63,815		54,723
Net income		26,094		22,145		54,108		45,157

The financial position of OCI Wyoming at June 30, 2015 and December 31, 2014 are summarized as follows (in thousands):


	June 30, 2015		December 31, 2014
	(Unaudited)
Current assets	$	166,900	$	200,622
Noncurrent assets		228,691		202,282
Current liabilities		46,367		47,704
Noncurrent liabilities		135,190		149,192