Investments (Tables)

12 Months Ended

Dec. 31, 2021

Investments, All Other Investments [Abstract]

Equity Method Investments

The following table represents the activity in equity method investments:

	Equity Method Investments
Balance at December 31, 2019	$	6.5
Equity in loss of unconsolidated affiliates, net (1)	(0.7)
Foreign currency translation adjustments and other	(0.5)
Balance at December 31, 2020	$	5.3
New investments (2) (3)	58.7
Reclassification from investments in equity securities to equity method investments (3)	36.8
Equity in earnings of unconsolidated affiliates, net (1) (2) (3)	0.4
Foreign currency translation adjustments and other	(1.6)
Balance at December 31, 2021	$	99.6

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(1)Our equity method investments include a 50% ownership interest in a joint venture with Hudson Products de Mexico S.A. de CV which totaled $3.3 and $2.8 at December 31, 2021 and 2020, 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. We recognized equity in earnings of this investment of $0.5, $0.3 and $0.2 for the years ended December 31, 2021, 2020 and 2019, respectively. Equity in earnings of this investment is classified in equity in earnings of unconsolidated affiliates, net in the statement of income for the year ended December 31, 2021 and selling, general and administrative expenses in the statements of income for the years ended December 31, 2020 and 2019.

Additionally, we have a 25% ownership interest in Liberty LNG, which totaled $2.4 and $2.1 at December 31, 2021 and 2020, respectively. For the years ended December 31, 2021 and 2020, equity in earnings (loss) of this investment was $0.3 and $(1.0), respectively, and was not significant for the year ended December 31, 2019. Equity in earnings (loss) of this investment is classified in equity in earnings of unconsolidated affiliates, net in the statement of income for the year ended December 31, 2021 and unrealized (gain) loss on investment in equity securities in the statement of income for the year ended December 31, 2020.

We have another immaterial investment in an unconsolidated affiliate of $0.4 for all periods presented.

(2)During the second quarter 2021, we completed an investment in Cryomotive GmbH (“Cryomotive”) in the amount of 6.8 million euros (equivalent to $8.2) for a 24.9% ownership interest. Our equity method investment in Cryomotive was $7.1 at December 31, 2021. Equity in loss of this investment was $0.6 for the year ended December 31, 2021 and is classified in equity in earnings of unconsolidated affiliates, net in the statement of income for the year ended December 31, 2021. Cryomotive is a leading green-tech mobility startup in Germany developing a disruptive clean hydrogen storage and refueling technology platform focused on compressed cold hydrogen and cryogenic high-pressure storage. Cryomotive’s proprietary CcH2 CRYOGAS technology aims to decarbonize long-haul commercial vehicles while keeping the range and fueling times similar to diesel powered vehicles.

(3)During the fourth quarter 2020, we completed an investment in HTEC Hydrogen Technology & Energy Corporation (“HTEC”) in the amount of CAD 20.0 million (equivalent to $15.7) in exchange for 15.6% of HTEC’s common stock on a fully-diluted basis (the “Initial HTEC Investment”). On September 7, 2021 (the “Closing Date”), we completed an additional investment in HTEC in the amount of CAD 63.5 million (equivalent to $50.5), which increased our investment ownership to 25% of HTEC’s common stock on a fully-diluted basis. We recognized a gain of $20.7 upon remeasurement of the Initial HTEC Investment due to an observable price change in an orderly transaction for similar instruments of the same issuer, which was recognized in unrealized (gain) loss on investments in equity securities in the consolidated statement of income for the year ended December 31, 2021. We reclassified the Initial HTEC Investment inclusive of the $20.7 gain and foreign currency translation gains from investments in equity securities to equity method investments during 2021. Our equity method investment in HTEC was $86.4 at December 31, 2021. We recognized equity in earnings of this investment of $0.2 for the year ended December 31, 2021, which is classified in equity in earnings of unconsolidated affiliates, net in the statement of income for the year ended December 31, 2021.

Summary of Investments

The following table represents the activity in investments in equity securities:

	Investment in Equity Securities, Level 1 (1)		Investment in Equity Securities, Level 2 (1)		Investments in Equity Securities, All Others (2)		Investments in Equity Securities Total
Balance at December 31, 2019	$	—	$	6.9	$	—	$	6.9
New investments	35.1		—		15.7		50.8
Increase (decrease) in fair value of investments in equity securities	17.0		(2.9)		—		14.1
Foreign currency translation adjustments and other	1.7		0.1		—		1.8
Balance at December 31, 2020	$	53.8	$	4.1	$	15.7	$	73.6
New investments (2) (3)	—		—		45.2		45.2
Reclassification due to acquisition of investee (3)	—		—		(7.6)		(7.6)
Reclassification to equity method investments from investments in equity securities (4)	—		—		(36.8)		(36.8)
(Decrease) increase in fair value of investments in equity securities	(19.7)		2.2		20.7		3.2
Realized gain on investment in equity securities (3)	—		—		2.6		2.6
Foreign currency translation adjustments and other	(2.8)		(0.1)		0.5		(2.4)
Balance at December 31, 2021	$	31.3	$	6.2	$	40.3	$	77.8

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(1)Investment in equity securities Level 1 includes our investment in McPhy (Euronext Paris: MCPHY – ISIN; FR0011742329). McPhy’s common stock trades on the Euronext Paris stock exchange and therefore we measure our investment in McPhy using Level 1 fair value inputs. The fair value of our investment in McPhy was $31.3 and $53.8 at December 31, 2021 and 2020, respectively. For the years ended December 31, 2021 and 2020, we recognized an unrealized loss of $19.7 and an unrealized gain of $17.0, respectively, in our investment in McPhy.

Investment in equity securities Level 2 includes our investment in Stabilis Energy, Inc. (NasdaqCM: SLNG) (“Stabilis”). Stabilis represents an instrument with quoted prices that trades less frequently than certain of our other exchange-traded instruments and therefore we measure our investment in Stabilis using Level 2 fair value inputs. The fair value of Stabilis was $6.2 and $4.1 at December 31, 2021 and 2020, respectively. For the years ended December 31, 2021, 2020 and 2019 we recognized and an unrealized gain of $2.2 and unrealized losses of $2.9 and $0.1, respectively, in our investment in Stabilis.

(2)During the first quarter 2021, we completed an investment in Transform Materials LLC (“Transform Materials”) in the amount of $25.1, inclusive of legal fees, for approximately 5% of its equity. Transform Materials is a sustainable chemical technology company that uses microwave plasma to convert natural gas into acetylene and hydrogen. Its highly selective, cost-effective, net-carbon-negative process converts the methane in natural gas into high-value products suitable for direct use or downstream reactions.

Also during the first quarter 2021, we completed an investment in Svante Inc. (“Svante”) in the amount of $15.1, inclusive of legal fees, for under 10% of its capital stock on a fully diluted basis. Svante offers companies in emissions-intensive industries a commercially viable way to capture large-scale CO2 emissions from existing infrastructure, either for safe storage or to be recycled for further industrial use in a closed loop.

Our investments in Transform Materials and Svante represent equity instruments without a readily determinable fair value.

(3)During the second quarter 2021, we completed an investment in Earthly Labs in the amount of $5.0 for approximately 15% of its equity. Earthly Labs is a leading provider of small-scale carbon capture systems offering an affordable, small footprint technology platform called “CiCi ®” to capture, recycle, reuse, track and sell CO2. Earthly Labs proprietary approach includes hardware, software and services to address half of all existing carbon dioxide emissions from industrial sources while converting molecules to value. On December 14, 2021 we completed the acquisition of the remaining 85% of the shares of Earthly Labs. On the acquisition date, we recognized a gain of $2.6 from the remeasurement of our initial 15% investment in Earthly Labs, which is classified as realized gain on investment in equity securities in the consolidated statement of income for the year ended December 31, 2021. See Note 13, “Business Combinations” for further information regarding the Earthly Labs acquisition.

(4)We reclassified the Initial HTEC Investment inclusive of a $20.7 gain and foreign currency translation gains from investments in equity securities to equity method investments. Refer to the “Equity Method Investments” section above for further discussion.