Investments in and Advances to Partially-Owned Affiliates

12 Months Ended

Dec. 31, 2013

Investments in and Advances to Partially-Owned Affiliates [Abstract]

Investments in and Advances to Partially-Owned Affiliates

(7) Investments in and Advances to Partially-Owned Affiliates

The Company owns 51% of the equity in Zenara Pharma (“Zenara”) and will purchase the remaining 49% in 2016 based upon a formula derived from future EBITDA. Zenara is a pharmaceutical company focused on the formulation of final dosage form products based in India.

Under current U.S. GAAP, the Company does not consolidate the results of Zenara as it does not meet the requirements of having control over the entity. The contractual arrangement includes substantial participating rights for the 49% interest holder. These rights were bargained for by the 49% interest holder to ensure that all significant transactions, as defined in the agreement, require a unanimous vote. Furthermore, the 49% minority owner manages all daily operations of the business including employee relations at the site. Therefore, the Company accounts for this investment under the equity method of accounting.

The impact of its ownership stake in Zenara was a loss of $1,956, $1,976 and $1,621 in 2013, 2012 and 2011, respectively, and is located within “Other expenses/(income)” as “Equity in losses of partially-owned affiliates” in the Company’s income statement. These amounts include amortization expense of $882, $965 and $1,106 in 2013, 2012 and 2011, respectively, and depreciation expense of $130, $132 and $149 in 2013, 2012 and 2011, respectively. The Company advanced $1,514 and $1,594 to Zenara in 2013 and 2012, respectively.

Investments in and advances to partially-owned affiliates also includes a loss of $311 and a gain of $210 in 2013 and 2012, respectively, related to an investment in a European joint venture. In 2013 and 2012, the Company advanced $141 and $453, respectively to the European joint venture.