Affiliated Companies

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

At December 31, 2021, the following affiliated companies were accounted for under the equity method:


	Location	Ownership interest
The West Company 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%
Pharma Rubber S.A. de C.V.	Mexico	49%
Daikyo	Japan	49%

On November 1, 2019, in connection with the amendment of certain commercial agreements with Daikyo, we increased our ownership interest from 25% to 49% in Daikyo in exchange for $85.1 million in cash and $4.9 million in shares of our treasury stock to certain stockholders of Daikyo.

Unremitted income of affiliated companies included in consolidated retained earnings amounted to $115.6 million, $98.2 million and $82.4 million at December 31, 2021, 2020 and 2019, respectively. Dividends received from affiliated companies were $2.7 million in 2021, $1.6 million in 2020 and $2.2 million in 2019.

Our equity in net unrealized gains of Daikyo’s investment securities and derivative instruments, as well as pension adjustments, included in accumulated other comprehensive loss was $1.5 million, $0.6 million and $0.4 million at December 31, 2021, 2020 and 2019, respectively.

Our purchases from, and royalty payments made to, affiliates totaled $155.0 million, $143.3 million and $115.1 million, respectively, in 2021, 2020 and 2019, of which $25.5 million and $33.6 million was due and payable as of December 31, 2021 and 2020, respectively. The majority of these transactions related to a distributorship agreement with Daikyo that allows us to purchase and re-sell Daikyo products. Sales to affiliates were $12.0 million, $9.7 million and $9.2 million, respectively, in 2021, 2020 and 2019, of which $2.3 million and $1.4 million was receivable as of December 31, 2021 and 2020, respectively.

At December 31, 2021 and 2020, the aggregate carrying amount of our investment in affiliated companies that are accounted for under the equity method was $201.2 million and $201.9 million, respectively, and the aggregate carrying amount of our investment in affiliated companies that are not accounted for under the equity method was $6.5 million and $12.8 million, respectively. We have elected to record these investments, for which fair value was not readily determinable, at cost, less impairment, adjusted for subsequent observable price changes. We test these investments for impairment whenever circumstances indicate that the carrying value of the investments may not be recoverable.