Investment in Joint Venture

9 Months Ended

Sep. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

We own a 49% investment in Wuxi Weifu Autocam Precision Machinery Company, Ltd. (the “JV”), a joint venture located in Wuxi, China. The JV is jointly controlled and managed, and we account for it under the equity method.

The following table shows changes in our investment in the JV.



Balance as of December 31, 2018	$	20,364
Share of earnings	345
Foreign currency translation loss	(832		)
Balance as of September 30, 2019	$	19,877

During the fourth quarter of 2018, as a result of changing market conditions, the fair value of the JV was assessed and we recorded an impairment of $16.6 million against our investment in the JV. The fair value assessment was significantly affected by changes in our assessment of future growth rates. It is reasonably possible that material deviation of future performance from the estimates used in the 2018 valuation could result in additional impairment to our investment in the JV in subsequent periods. During the third quarter of 2019, we assessed for triggering events that would signify the need to perform an impairment test and concluded there were no triggering events during the period.

We recognized sales to the JV of less than $0.1 million and $0.1 million during the three and nine months ended September 30, 2019, respectively, and less than $0.1 million and $0.2 million for the three and nine months ended September 30, 2018, respectively.