Variable Interest Entities

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

In connection with the Arysta Acquisition in February 2015, the Company acquired ownership in two distributors deemed to be variable interest entities.

Saphyto S.A.

The Company holds a 45.0% interest in its product distributor, Saphyto S.A. The Company has determined that it is the primary beneficiary of the activities of Saphyto S.A., as approximately 94.0% of the distributor's sales are based on the Company's products and it has the power to direct activities impacting Saphyto S.A.'s economic performance. The Company is responsible for granting licenses to Saphyto S.A. to sell products and providing technical assistance and feedback on internal operations and controls. The Company and Saphyto's management jointly define the commercial, financial and technical strategy of Saphyto S.A., including pricing. As a result, the activities of Saphyto S.A. are consolidated in the Company's Condensed Consolidated Financial Statements.

The following table summarizes the carrying amounts of Saphyto S.A.’s assets and liabilities included in the Company’s Condensed Consolidated Balance Sheet at June 30, 2015:



(amounts in millions)	June 30, 2015
Assets and Liabilities of Saphyto S.A.
Cash and cash equivalents	$	—
Other current assets	13.1
Property, plant and equipment	1.2
Other non-current assets	0.3
Total assets	$	14.6
Current liabilities	10.5
Total liabilities	$	10.5

The capital structure of Saphyto S.A. includes total owner's equity of $4.1 million and short term borrowings of $1.0 million as of June 30, 2015.

Société des Produits Industriels et Agricoles, or SPIA

The Company holds a 31.95% interest in its product distributor, SPIA. Approximately 90% of sales generated in SPIA are attributable to the Company's products. The Company is responsible for the development of SPIA's sales for export, administrative and accounting support, and technical support sales.

The Company has determined that although it receives a disproportionate amount of economic benefit as compared to its ownership interest, it is not the primary beneficiary of the activities of SPIA, as the majority shareholder of SPIA holds a 50.9% interest and exercises control through voting rights. As a result, the Company has applied the equity method of accounting to its interest in SPIA and is reflected in "Other assets" in the Company's Condensed Consolidated Balance Sheet. The equity investment balance totaled $1.3 million as of June 30, 2015, representing the Company's maximum exposure to loss. SPIA's total assets were approximately $4.3 million as of June 30, 2015. The capital structure of SPIA includes total owner's equity of approximately $4.3 million.