Investments (Tables)

9 Months Ended

Sep. 30, 2022

Investments, All Other Investments [Abstract]

Schedule of Equity Method Investments

The following table represents the activity in equity method investments:

	Equity Method Investments (1) (2) (3)
Balance at December 31, 2021	$	99.6
New investments	0.5
Reclassification due to acquisition of investee (4)	(0.8)
Realized gain on equity method investment (4)	0.3
Equity in loss of unconsolidated affiliates	(0.3)
Foreign currency translation adjustments and other	(7.6)
Balance at September 30, 2022	$	91.7

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(1)Cryomotive: Our equity method investment in Cryomotive GmbH (“Cryomotive”) was $4.9 and $7.1 at September 30, 2022 and December 31, 2021, respectively. Equity in loss of unconsolidated affiliates, net of this investment was $0.4 and $0.3 for the three months ended September 30, 2022 and 2021, respectively, and $1.3 and $0.3 for the nine months ended September 30, 2022 and 2021, respectively, and is classified in equity in (loss) earnings of unconsolidated affiliates, net in the condensed consolidated statements of income for the three and nine months ended September 30, 2022 and in selling, general and administrative expenses for the three and nine months ended September 30, 2021.

(2)HTEC: Our equity method investment in HTEC Hydrogen Technology & Energy Corporation (“HTEC”) was $79.6 and $86.4 at September 30, 2022 and December 31, 2021, respectively. The decrease in value for the nine months ended September 30, 2022 was driven by foreign currency translation. We recognized $0.2 in equity in earnings of unconsolidated affiliates, net of this investment for the three months ended September 30, 2022 and $0.3 in equity in loss of unconsolidated affiliates, net for the nine months ended September 30, 2022.

(3)Hudson Products: Also included in our equity method investments is a 50% ownership interest in a joint venture with Hudson Products de Mexico S.A. de CV which totaled $4.0 and $3.3 at September 30, 2022 and December 31, 2021, 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 it is not consolidated. We recognized equity in earnings of unconsolidated affiliates, net of this investment of $0.3 and $0.1 for the three months ended September 30, 2022 and 2021, respectively, and $0.9 and $0.2 for the nine months ended September 30, 2022 and 2021, respectively.

Liberty LNG: Additionally, we have a 25% ownership interest in Liberty LNG, which totaled $2.8 and $2.4 at September 30, 2022 and December 31, 2021, respectively. We recognized equity in earnings of unconsolidated affiliates, net of this investment of $0.2 and $0.1 for the three months ended September 30, 2022 and 2021, respectively, and $0.4 and $0.2 for the nine months ended September 30, 2022 and 2021, respectively.

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

(4)AdEdge India: In connection with our acquisition of AdEdge Holdings, LLC (“AdEdge”), we recorded a 50% ownership interest in a joint venture in AdEdge India at a fair value of $0.5. On May 4, 2022, we completed the acquisition of the remaining 50% of the shares of our joint venture in AdEdge India. On the acquisition date, we recognized a gain of $0.3 from the remeasurement of our initial 50% of the shares in the joint venture, which is classified as realized gain on equity method investment in the condensed consolidated statements of income for the three and nine months ended September 30, 2022. See Note 10, “Business Combinations” for further information regarding the AdEdge India acquisition.

Summary of Investments

The following table summarizes the components of our 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 Total
Balance at December 31, 2021	$	31.3	$	6.2	$	40.3	$	77.8
New investments (3)	—		—		4.4		4.4
Change in fair value of investments in equity securities	(16.1)		5.2		—		(10.9)
Foreign currency translation adjustments and other	(3.4)		—		(1.0)		(4.4)
Balance at September 30, 2022	$	11.8	$	11.4	$	43.7	$	66.9

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(1)McPhy: Investment in equity securities Level 1 includes our investment in McPhy (Euronext Paris: MCPHY - ISIN; FR001742329). 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 $11.8 and $31.3 at September 30, 2022 and December 31, 2021, respectively. We recognized an unrealized loss in our investment in McPhy of $4.1 and $6.0 for the three months ended September 30, 2022 and 2021, respectively, and an unrealized loss of $16.1 and $25.8 for the nine months ended September 30, 2022 and 2021, respectively.

Stabilis: 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 our investment in Stabilis was $11.4 and $6.2 at September 30, 2022 and December 31, 2021, respectively. We recognized an unrealized gain of $5.4 and an unrealized loss of $4.3 for the three months ended September 30, 2022 and 2021, respectively, and an unrealized gain of $5.2 and $6.3 for the nine months ended September 30, 2022 and 2021, respectively, in our investment in Stabilis.

(2)Transform: The fair value of our investment in Transform Materials LLC (“Transform Materials”) was $25.1 at both September 30, 2022 and December 31, 2021.

Svante: The fair value of our investment in Svante Inc. (“Svante”) was $15.1 at both September 30, 2022 and December 31, 2021.

(3)Hy24 (f/k/a FiveT Hydrogen Fund and Clean H2 Infra Fund): During the first quarter of 2022, we completed an investment in Hy24. Our investment in Hy24 is measured at fair value using the net asset value (“NAV”) per share practical expedient and is not classified in the fair value hierarchy. The fair value of our investment in the Hy24 was euro 1.5 million (equivalent to $1.5) at September 30, 2022. See “Hy24 (f/k/a FiveT Hydrogen Fund and Clean H2 Infra Fund)” below for further information.

Cemvita Factory Inc., Gold Hydrogen LLC: During the first quarter of 2022, we completed an investment in Gold Hydrogen LLC (“Gold Hydrogen”) in the amount of $1.0. During the third quarter of 2022, we invested an additional $1.0 in Gold Hydrogen. This investment is measured 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 and is included in the investments in equity securities, all others category in the table above. As of September 30, 2022, the value of the investment was $2.0. Gold Hydrogen is a subsidiary company established by Cemvita Factory, Inc. focused on commercializing viable technologies for the subsurface production of biohydrogen.

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