Investment in Unconsolidated Affiliates

3 Months Ended

Apr. 02, 2016

Investment in Unconsolidated Affiliates [Abstract]

Note 5 – Investment in Unconsolidated Affiliates

The Company owns a 50 percent interest in Tecumseh Products Holdings LLC (Joint Venture), an unconsolidated affiliate that acquired Tecumseh Products Company (Tecumseh) during 2015. The Company also owns 50 percent interest in a second unconsolidated affiliate that provided financing to Tecumseh in conjunction with the acquisition. These investments are accounted for using the equity method of accounting as the Company can exercise significant influence but does not own a majority equity interest or otherwise control the repective entities. Under the equity method of accounting, these investments are stated at initial cost and are adjusted for subsequent additional investments and the Company's proportionate share of earnings or losses and distributions.

The Company records its proportionate share of the investee's net income or loss one quarter in arrears as income (loss) from unconsolidated affiliates in the Condensed Consolidated Statements of Income.

The following tables present summarized financial information derived from the Company's equity method investee's combined consolidated financial statements, which are prepared in accordance with U.S. GAAP.

(In thousands)	December 31, 2015		September 30, 2015

Current assets	$	225,500		$	251,389
Noncurrent assets		118,600			112,156
Current liabilities		138,781			178,784
Noncurrent liabilities		71,700			63,643

	For the Quarter Ended
(In thousands)	December 31, 2015			September 30, 2015

Net sales		$	151,600		$	—
Gross profit			18,000			—
Net income			5,843			—

Included in the Joint Venture's net income for the quarter ended December 31, 2015 is a gain of $17.1 million that resulted from the allocation of the purchase price, which was finalized during the quarter. That gain was offset by restructuring and impairment charges of $5.3 million and operating losses of $6.0 million.