|FORTERRA, INC. filed this Form 10-Q on 08/09/2018|
Notes to Unaudited Condensed Consolidated Financial Statements
Inventories consist of the following (in thousands):
6. Investment in equity method investee
The Company contributed plant assets and related inventory from nine operating locations as part of the agreement to form a joint venture with Americast, Inc., Concrete Pipe & Precast LLC ("CP&P"), and in return for the contribution the Company obtained a 50% ownership stake in the joint venture through its 500 Common Unit voting shares in CP&P. Both at June 30, 2018 and December 31, 2017, the Company owned 50% of CP&P's voting common stock.
The Company's investment in the joint venture was $55.0 million at June 30, 2018, which is included within the Drainage Pipe & Products segment. At June 30, 2018, the difference between the amount at which the Company's investment is carried and the amount of the Company's share of the underlying equity in net assets of CP&P was approximately $13.1 million. The basis difference is primarily attributed to the value of land and equity method goodwill associated with the investment.
Selected financial data for the investee is as follows (in thousands):