Investments in Affiliated Companies

12 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Investments in Affiliated Companies

10. Investments in Affiliated Companies:

The Company accounts for investments in affiliated companies under the equity method. Affiliated companies accounted for on the equity basis as of December 31, 2023 are as follows:

Company	Country	Percent Ownership
Zeolyst International	USA	50%
Zeolyst C.V.	Netherlands	50%

Following is summarized information of the combined investments(1):

	December 31,
	2023		2022
Current assets	$	291,825	$	278,330
Noncurrent assets	183,717		196,775
Current liabilities	36,799		47,407
Noncurrent liabilities	5,797		16,000

	December 31,
	2023		2022		2021
Sales	$	345,002	$	306,511	$	296,416
Gross profit	107,865		105,693		101,069
Operating income	70,783		67,169		66,978
Net income	74,053		68,255		68,433

(1)    Summarized information of the combined investments is presented at 100%; the Company’s share of the net assets and net income of affiliates is calculated based on the percent ownership specified in the table above.

The Company’s investments in affiliated companies balance as of December 31, 2023 and 2022 includes net purchase accounting fair value adjustments of $224,614 and $231,017, respectively, related to a prior business combination, consisting primarily of goodwill and intangible assets such as customer relationships, technical know-how and trade names. Consolidated equity in net income from affiliates is net of $6,403, $6,402 and $6,480 of amortization expense related to purchase accounting fair value adjustments for the years ended December 31, 2023, 2022 and 2021, respectively.

The following table summarizes the activity related to the Company’s investments in affiliated companies balance on the consolidated balance sheets:

	December 31,
	2023		2022
Balance at beginning of period	$	436,013	$	446,074
Equity in net income of affiliated companies	37,027		34,128
Charges related to purchase accounting fair value adjustments	(6,403)		(6,402)
Dividends received	(28,000)		(35,000)
Foreign currency translation adjustments	1,561		(2,787)
Balance at end of period	$	440,198	$	436,013

The Company had receivables due from affiliates of $3,231 and $3,861 as of December 31, 2023 and 2022, respectively, which are included in prepaid and other current assets. The Company had payables from affiliates of $1,351 and $322 as of December 31, 2023 and 2022, respectively, which is included in accrued liabilities. Receivables and payables due from affiliates are generally non-trade.

Sales to affiliates were $2,457, $5,915 and $3,643 for the years ended December 31, 2023, 2022 and 2021, respectively. Purchases from affiliates were immaterial during the years ended December 31, 2023, 2022 and 2021.

On December 18, 2013, the Company and its joint venture, Zeolyst International, entered into a ten year real estate tax abatement agreement with the Unified Government of Wyandotte County in Kansas City, Kansas. The agreement utilizes an Industrial Revenue Bond (“IRB”) financing structure to achieve a 75% real estate tax abatement on the value of the improvements that were constructed during the expansion of the Company and Zeolyst International’s facilities at the jointly-operated Kansas City, Kansas plant. A similar tax abatement agreement has been executed on an annual basis since December 18, 2013 with respect to additional plant expansions during those years.

During the year ended December 31, 2019, the original IRB financing structure from December 2013 was exhausted. In order to fund future plant expansions, the Company entered into an additional IRB financing structure on December 19, 2019 with similar terms and conditions, which also provides for 75% real estate tax abatement on the value of future improvements. The financing obligations and the industrial bonds receivable have been presented net, as the financing obligations and the industrial bonds meet the criteria for right of set off conditions under GAAP.