Investments

12 Months Ended

Dec. 31, 2020

Investments, All Other Investments [Abstract]

The following table summarizes the components of investments:


	December 31,
	2020		2019
Investment in equity securities	$	73.6	$	6.9
Equity investments	5.3		6.5
Total investments	$	78.9	$	13.4

Investment in equity securities

During the fourth quarter of 2020, we completed an investment in HTEC Hydrogen Technology & Energy Corporation (“HTEC”) in the amount of CAD20 million ($15.7) for 15.6% of its capital stock on a fully-diluted basis. This investment was measured at cost as of December 31, 2020. HTEC designs, builds, and operates hydrogen fuel supply solutions to support the deployment of hydrogen fuel cell electric vehicles. It has significant hydrogen development experience in the Canadian market, with signed contracts for numerous projects across the country.

Also, during the fourth quarter of 2020, we made an investment in McPhy (Euronext Paris: MCPHY – ISIN; FR0011742329) by subscribing to 1,276,595 shares for 30 million euros ($35.1). As of December 31, 2020 we hold 4.6% of the capital of McPhy and, the value of the investment was $53.8, which reflects a $17.0 unrealized gain recognized from the subsequent mark-to-market for the year ended December 31, 2020. Gains and losses for this investment in equity securities were recorded in unrealized (gain) loss on investment in equity securities on the consolidated statement of income and comprehensive income during the year ended December 31, 2020.

During the third quarter of 2019, we made an investment in Stabilis Energy, Inc. (“Stabilis”) by converting $7.0 of a note receivable from Stabilis into an investment in their company stock. As of December 31, 2020, the value of the investment was $4.1, which reflects a $2.9 unrealized loss recognized from the subsequent mark-to-market for the year ended December 31, 2020. As of December 31, 2019, the value of the investment was $6.9, which reflected a $0.1 unrealized loss recognized from the subsequent mark-to-market for the year ended December 31, 2019. Gains and losses for this investment in equity securities were recorded in unrealized (gain) loss on investment in equity securities on the consolidated statements of income and comprehensive income during the years ended December 31, 2020 and 2019.

We measure our investments at fair value on a recurring basis. Furthermore, we categorize our investments according to the fair value hierarchy as defined in Note 2, “Significant Accounting Policies.” Since quoted prices in an active market are observable, we measured the fair value of our investment in McPhy as a Level 1 investment in the December 31, 2020 consolidated balance sheet. We measured the fair value of our investment in Stabilis as a Level 2 investment in the consolidated balance sheets for the periods presented because we are able to observe quoted prices for identical assets in markets that are not active, i.e., Stabilis common stock trades in a dealer market as defined in ASC Topic 820 “Fair Value Measurement,” and by nature, dealers stand ready to trade, yet the market is not active. Lastly, we measure our investment in HTEC at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. As such, we consider our investment in HTEC a Level 3 investment in the December 31, 2020 consolidated balance sheet. We reassess measurement options for the HTEC investment on a quarterly basis.

Equity method accounting investments

Our equity investments accounted for under the equity method of accounting include a 50% ownership interest in a joint venture with Hudson Products de Mexico, S.A. de C.V., which totaled $2.8 and $2.9 for the years ended December 31, 2020 and 2019, respectively. This investment is operated and managed by our joint venture partner and as such, we do not have control over the joint venture and therefore is not consolidated. Our equity in earnings from this investment was $0.3, $0.2 and $0.6 for the years ended December 31, 2020, 2019 and 2018, respectively. Earnings in this investment are classified in unrealized (gain) loss on investment in equity securities in the consolidated statements of income for the year ended December 31, 2020. Earnings in this investment is classified in SG&A expenses in the consolidated statements of income for the years ended 2019 and 2018.

Additionally, we have a 25% ownership interest in Liberty LNG which we invested in during the third quarter of 2019 which totaled $2.1 and $3.3 at December 31, 2020 and 2019, respectively. Losses for 2020 were $1.0 and earnings for 2019 were not material. Earnings in this investment are classified in unrealized (gain) loss on investment in equity securities in the consolidated statements of income for the years ended December 31, 2020 and 2019.