Equity Method Investments

6 Months Ended

Mar. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

6. Equity Method Investments

The Company accounts for certain of its investments using the equity method of accounting and records its proportionate share of the investee’s earnings  in its results of operations with a corresponding increase in the carrying value of the investment.

ULVAC Cryogenics, Inc.

The Company and ULVAC Corporation of Chigasaki, Japan each own a 50% stake in the joint venture, ULVAC Cryogenics, Inc (“UCI”). UCI manufactures and sells cryogenic vacuum pumps, principally to ULVAC Corporation.

The carrying value of the investment in UCI was $35.1 million and $28.6 million, respectively, at March 31, 2018 and September 30, 2017. During the three months ended March 31, 2018 and 2017, the Company recorded income of $1.4 million and $2.8 million, respectively, representing its proportionate share of UCI’s earnings. During the six months ended March 31, 2018 and 2017, the Company recorded income of $3.6 million and $5.2 million, respectively, representing its proportionate share of UCI’s earnings. Management fee payments received by the Company from UCI were $0.3 million and $0.2 million during the three months ended March 31, 2018 and 2017. Management fee payments received by the Company from UCI were $0.5 million during each of the six months ended March 31, 2018 and 2017.