Anuvu Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Equity Method Investments

Equity Method Investments

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

The Company owns 49% interests in WMS and in Santander. During the fourth quarter of 2018, in accordance with ASC 323, the Company completed an assessment of the recoverability of its equity method investments. During the year ended December 31, 2018, the carrying value of its interest in the WMS joint venture exceeded the estimated fair value of its interest, which management concluded was other than temporary, and accordingly recorded an impairment charge of $51.0 million relating to its WMS equity investment.

During the fourth quarter of 2019, following the assessment of the recoverability of its equity method investments, the Company determined that the fair value of its investments in WMS and Santander exceeded their respective carrying values and accordingly recorded no impairment charge.

Following is the summarized financial information for such equity method investments on an aggregated basis as of and for the years ended December 31, 2019 and 2018 (in thousands):



	December 31,
	2019		2018
Current assets	$	50,588	$	40,224
Non-current assets	25,370		26,115
Current liabilities	26,593		15,880
Non-current liabilities	2,207		2,581



	Year Ended December 31,
	2019		2018
Revenue	$	147,329	$	132,087
Operating expenses	117,768		109,024
Net income	29,561		23,063

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



	Year Ended December 31,
	2019		2018
Carrying value in the Company’s equity method investments	$	78,886	$	83,135

As of December 31, 2019, there was an aggregate difference of $55.8 million between the carrying amounts (inclusive of the impact of the impairment losses) 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.