Partially-Owned Affiliates

12 Months Ended

Dec. 31, 2014

Partially-Owned Affiliates [Abstract]

Partially-Owned Affiliates

(8) Partially-Owned Affiliates

In May 2014, the Company negotiated an accelerated purchase of Zenara, which was contractually required to be completed in 2016 at a price that would have been determined by the financial performance of the business. The purchase price negotiated for the remaining 49% was $2,680.  Management believed it was economically beneficial to take control of the business to accelerate the execution of the Company’s strategy for the business. The Company incurred acquisition related costs of $460 for the year ended December 31, 2014.

The Company was required to perform a fair market value assessment immediately before acquisition of its existing 51% ownership interest.  This resulted in the recognition of a gain of $278 using a discounted cash flow model with inputs developed by Company management.  The Company also recorded an expense of $4,400 representing the release of foreign currency translation adjustments previously recorded in “Other comprehensive income” that are now required to be recorded to the income statement as a result of the removal of the investment in partially-owned affiliate due to the full consolidation of Zenara as of the acquisition date.  The net amount of these items totaled a loss of $4,122 and is recorded in “Equity in losses of partially-owned affiliates” on the Company’s income statement.

The Company recorded a loss of $458 related to Zenara and reflects activity through the date the remaining 49% was purchased.  This amount includes amortization expense of $333. The impact of its partial ownership stake in Zenara was a loss of $1,956 and $1,976 in 2013 and 2012, respectively, and is located within “Other expenses/(income)” as “Equity in losses of partially-owned affiliates” on the Company’s income statement.  These amounts include amortization expense of $882 and $965 in 2013 and 2012, respectively, and depreciation expense of $130 and $132 in 2013 and 2012, respectively.  During 2014 the Company advanced $1,282 to Zenara through the purchase date.  The Company advanced $1,514 and $1,594 to Zenara in 2013 and 2012, respectively.

The Company’s financial statements reflect its share of Zenara’s results through the date the Company purchased the remaining 49% interest at which time Zenara became a wholly-owned subsidiary of the Company and included in the consolidated financial statements.  Partially-owned affiliates also includes two smaller joint ventures located in Europe and Brazil.   Investments in and advances to partially-owned affiliates were not material to the Company’s consolidated financial statements as of December 31, 2014.