Anuvu Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Equity Method Investments

Equity Method Investments

9 Months Ended

Sep. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

In connection with the Company’s acquisition of Emerging Markets Communications (“EMC”) in July 2016 (the “EMC Acquisition”), the Company acquired 49% of the equity interests in each of EMC’s Wireless Maritime Services, LLC (“WMS”) and Santander Teleport S.L. (“Santander”) joint ventures (which equity interests EMC owned at the time of the EMC Acquisition). These investments are accounted for using the equity method of accounting, under which our results of operations include our share of the income of WMS and Santander in income from equity method investments in our condensed consolidated statements of operations.

The following is the summarized balance sheet information for these equity method investments on an aggregated basis as of September 30, 2019 and December 31, 2018 (in thousands):



	September 30, 2019		December 31, 2018
Current assets	$	47,134	$	40,224
Non-current assets	25,973		26,115
Current liabilities	18,556		15,880
Non-current liabilities	2,935		2,581

Following is the summarized results of operations information for these equity method investments on an aggregated basis for the three and nine months ended September 30, 2019 and 2018 (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenue	$	41,021	$	35,690	$	110,610	$	100,596
Net income	8,809		7,440		23,651		17,538

The carrying values of the Company’s equity interests in WMS and Santander as of September 30, 2019 and December 31, 2018 were as follows (in thousands):



	September 30, 2019		December 31, 2018
Carrying value in our equity method investments	$	81,514	$	83,135

As of September 30, 2019, there was an aggregate difference of $56.2 million between the carrying amounts of these investments and the amounts of underlying equity in net assets in these investments. The difference was determined by applying the acquisition method of accounting in connection with the EMC Acquisition and is being amortized ratably over the life of the related acquired intangible assets. The weighted-average life of the intangible assets at the time of the EMC Acquisition in total was 14.9 years.