Affiliated Companies

12 Months Ended

Dec. 31, 2011

Note 10: Affiliated Companies

At December 31, 2011, the following affiliated companies were accounted for under the equity method:

	Location	Ownership interest
West Pharmaceutical Services Mexico, S.A. de C.V.	Mexico		49	%
Aluplast S.A. de C.V.	Mexico		49	%
Pharma Tap S.A. de C.V.	Mexico		49	%
Daikyo Seiko, Ltd. (“Daikyo”)	Japan		25	%

Unremitted income of affiliated companies included in consolidated retained earnings amounted to $37.5 million, $31.5 million and $27.4 million at December 31, 2011, 2010 and 2009, respectively. Dividends received from affiliated companies were $0.3 million in 2011, 2010 and 2009.

Our equity in unrealized (gains) losses of Daikyo's investment in securities available-for-sale and derivative instruments, included in accumulated other comprehensive loss was $(0.4) million, $(0.1) million and $0.5 million at December 31, 2011, 2010 and 2009, respectively.

Our purchases and royalty payments made to affiliates totaled $66.4 million, $49.3 million and $45.4 million, respectively, in 2011, 2010 and 2009, of which $9.2 million and $4.3 million was due and payable as of December 31, 2011 and 2010, respectively. The majority of these transactions relate to a distributorship agreement allowing us to purchase and re-sell Daikyo products. Sales to affiliates were $4.5 million, $2.4 million and $1.9 million, respectively, in 2011, 2010 and 2009, of which $1.3 million and $0.5 million was receivable as of December 31, 2011 and 2010, respectively.

At December 31, 2011 and 2010, the aggregate carrying amount of investments in equity method affiliates was $56.2 million and $48.2 million, respectively.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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