VISKASE COMPANIES, INC.
ANNUAL REPORT 2014
This report has been prepared in accordance with Section 5.04 of the Credit
Agreement dated as of January 30, 2014 among Viskase Companies, Inc. (the
“Company”) and UBS AG, Stamford Branch as administrative agent and as collateral
agent (the “Agent”).
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CONSOLIDATED FINANCIAL STATEMENTS OF VISKASE COMPANIES, INC. AND
SUBSIDIARIES
1.
Financial Statements:
Report of Independent Certified Public Accountants
Consolidated Balance Sheets as of December 31, 2014 and 2013
Consolidated Statements of Income for the years ended December 31, 2014,
2013 and 2012
Consolidated Statements of Comprehensive (Loss) Income for the years ended
December 31, 2014, 2013 and 2012
Consolidated Statements of Stockholders' Equity (Deficit) for the years ended
December 31, 2014, 2013 and 2012
Consolidated Statements of Cash Flows for the years ended December 31, 2014,
2013 and 2012
2.
Notes to Consolidated Financial Statements
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Grant Thornton LLP
175 W Jackson Boulevard, 20th Floor
Chicago, IL 60604-2687
T 312.856.0200
F 312.565.4719
GrantThornton.com
linkd.in/GrantThorntonUS
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Board of Directors
Viskase Companies, Inc.
We have audited the accompanying consolidated financial statements of Viskase Companies, Inc.
(a Delaware corporation) and Subsidiaries, which comprise the consolidated balance sheets as of
December 31, 2014 and 2013, and the related consolidated statements of income, comprehensive
income (loss), changes in stockholders’ equity (deficit), and cash flows for the years then ended,
and the related notes to the financial statements.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with accounting principles generally accepted in the United
States of America; this includes the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of consolidated financial statements that are free
from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on
our audits. We conducted our audits in accordance with auditing standards generally accepted in
the United States of America. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the consolidated financial statements. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material misstatement of the
consolidated financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the consolidated financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness
of significant accounting estimates made by management, as well as evaluating the overall
presentation of the consolidated financial statements.
Grant Thornton LLP
U.S. member firm of Grant Thornton International Ltd
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all
material respects, the financial position of Viskase Companies, Inc. and Subsidiaries as of
December 31, 2014 and 2013, and the results of their operations and their cash flows for the
years then ended in accordance with accounting principles generally accepted in the United States
of America.
Chicago, Illinois
February 27, 2015
Grant Thornton LLP
U.S. member firm of Grant Thornton International Ltd
VISKASE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except for Number of Shares)
See notes to consolidated financial statements.
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December 31, 2014December 31, 2013ASSETSCurrent assets: Cash and cash equivalents$39,310$19,079 Restricted cash1,3641,262 Receivables, net63,31367,464 Inventories77,11772,139 Other current assets27,08830,133 Deferred income taxes11,8688,480Total current assets220,060198,557Property, plant and equipment282,124272,459Less accumulated depreciation126,228113,724Property, plant and equipment, net155,896158,735Deferred financing costs2,8594,793Other assets, net6,582371Deferred income taxes43,58039,572Total Assets$428,977$402,028LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities: Short-term debt$3,357$12,690 Short-term portion of capital lease obligations271329 Accounts payable27,99733,516 Accrued liabilities33,38147,158 Deferred income taxes152- Total current liabilities65,15893,693Long-term debt, net of current maturities269,660216,033Capital lease obligations, net of current portion321412Accrued employee benefits51,82532,819Deferred income taxes3,1233,960Stockholders’ equity:370369Paid in capital32,80132,839Retained earnings78,97569,145Less 805,270 treasury shares, at cost(298)(298)Accumulated other comprehensive loss(72,958)(46,944)Total stockholders' equity38,89055,111Total Liabilities and Stockholders' Equity$428,977$402,028Common stock, $0.01 par value; 36,984,817 shares issued and 36,179,547 outstanding at December 31, 2014 and 36,901,249 shares issued and 36,095,979 outstanding at December 31, 2013
VISKASE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands)
See notes to consolidated financial statements.
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YearYearYearEndedEndedEndedDecemberDecemberDecember31, 201431, 201331, 2012 NET SALES$365,203$370,986$342,523Cost of sales273,938283,718261,261GROSS MARGIN91,26587,26881,262Selling, general and administrative44,97246,45645,265Amortization of intangibles18127460Tax amnesty settlement- 23,482- Asset impairment charge80- - Restructuring expense217 - 600 OPERATING INCOME45,97817,20334,937Interest income195146Interest expense, net14,19122,47620,966Loss on early extinguishment of debt15,739- - Other expense, net3,1791,5541,396INCOME (LOSS) BEFORE INCOME TAXES12,888(6,776)12,621Income tax (benefit) provision 3,058(51,459)4,746NET INCOME $9,830$44,683$7,875WEIGHTED AVERAGE COMMON SHARES- BASIC 36,131,79536,095,97936,024,298PER SHARE AMOUNTS:EARNINGS PER SHARE- BASIC$0.27$1.24$0.22WEIGHTED AVERAGE COMMON SHARES- DILUTED37,280,06437,224,53236,771,801PER SHARE AMOUNTS:EARNINGS PER SHARE- DILUTED$0.26$1.20$0.21
VISKASE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(In Thousands)
See notes to consolidated financial statements.
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YearYearYearEndedEndedEndedDecemberDecemberDecember31, 201431, 201331, 2012Net income$9,830$44,683$7,875Other comprehensive (loss) income, net of tax Pension liability adjustment(16,484)20,313(11,179) Foreign currency translation adjustment(9,530)(993)1,547Other comprehensive (loss) income, net of tax(26,014)19,320(9,632)Comprehensive (loss) income ($16,184)$64,003($1,757)
VISKASE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
(In Thousands)
See notes to consolidated financial statements.
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Accumulated otherTotalCommonPaid inTreasuryRetained comprehensive stockholders’stockcapitalstockearningslossequity (deficit)Balance December 31, 2011$367$32,806($298)$16,587($56,632)($7,170)Net income7,8757,875Foreign currency translation adjustment1,5471,547Pension liability adjustment, net of tax(11,179)(11,179)Issuance of common stock2(15)(13)Balance December 31, 2012$369$32,791($298)$24,462($66,264)($8,940)Net income44,68344,683Foreign currency translation adjustment(993)(993)Pension liability adjustment, net of tax20,31320,313Stock option expense4848 Balance December 31, 2013$369$32,839($298)$69,145($46,944)$55,111Net income9,8309,830Foreign currency translation adjustment (9,530)(9,530)Pension liability adjustment, net of tax(16,484)(16,484)Stock option expense6060Stock option exercise1(98)(97)Balance December 31, 2014$370$32,801($298)$78,975($72,958)$38,890
VISKASE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
See notes to consolidated financial statements.
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YearYearYearEndedEndedEndedDecemberDecemberDecember31, 201431, 201331, 2012Cash flows from operating activities:Net income $9,830$44,683$7,875 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation20,10119,50916,173Stock-based compensation60 48 1 Amortization of intangibles18127460Amortization of deferred financing fees5341,0171,024Deferred income taxes466(57,194)(1,400)Loss on disposition of assets269202110Bad debt and accounts receivable provision403177(390)Loss on early extinguishment of debt15,739- - Non-cash interest on notes799384Changes in operating assets and liabilities:Receivables1,459(3,172)(7,493)Inventories(8,209)(9,326)(7,308)Other current assets2,270(7,779)(4,169)Accounts payable(3,941)4,809(1,699)Accrued liabilities(12,181)5,012618Accrued employee benefits(4,556)386(1,501)Other(7,551)(5,081)405Total adjustments4,960(51,172)(5,085)Net cash provided by (used in) operating activities14,790(6,489)2,790Cash flows from investing activities:Capital expenditures(23,091)(19,119)(38,252)Proceeds from disposition of assets2146106Net cash used in investing activities(23,089)(18,973)(38,146)Cash flows from financing activities: Issuance of common stock1- - Deferred financing costs(3,228)(125)(125)Proceeds from revolving loan- 14,011- Proceeds from long-term debt274,313- - Repayment of short-term debt(15,357)- - Repayment of long-term debt(225,617)(170)- Repayment of capital lease(375)(434)(615)Restricted cash(102)(204)1,061Net cash provided by financing activities29,63513,078321Effect of currency exchange rate changes on cash(1,105)351222Net increase (decrease)in cash and equivalents20,231(12,033)(34,813)Cash and equivalents at beginning of period19,07931,11265,925Cash and equivalents at end of period$39,310$19,079$31,112Supplemental cash flow information:Interest paid less capitalized interest$10,834$21,457$20,035Income taxes paid $4,889$3,125$6,995
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands)
1. Summary of Significant Accounting Policy
Nature of Operations
Viskase Companies, Inc. together with its subsidiaries (“we” or the “Company”) is a producer of non-
edible cellulosic, fibrous and plastic casings used to prepare and package processed meat products,
and provides value-added support services relating to these products, for some of the largest global
consumer products companies. The Company operates nine manufacturing facilities, six distribution
centers and three service centers in North America, Europe, South America, and Asia and, as a
result, is able to sell its products in nearly one hundred countries throughout the world.
Principles of Consolidation
The consolidated financial statements include the accounts of the Company. Intercompany accounts
and transactions have been eliminated in consolidation.
Use of Estimates in the Preparation of Financial Statements
The financial statements are prepared in accordance with generally accepted accounting principles
(“GAAP”) in the United States of America and include the use of estimates and assumptions that
affect a number of amounts included in the Company’s financial statements, including, among other
things, pensions and other postretirement benefits and related disclosures, reserves for excess and
obsolete inventory, allowance for doubtful accounts, and income taxes. Management bases its
estimates on historical experience and other assumptions that we believe are reasonable. If actual
amounts are ultimately different from previous estimates, the revisions are included in the
Company’s results for the period in which the actual amounts become known. Historically, the
aggregate differences, if any, between the Company’s estimates and actual amounts in any year
have not had a significant effect on the Company’s consolidated financial statements.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Company considers cash equivalents to consist of
all highly liquid debt investments purchased with an initial maturity of approximately three months or
less. Due to the short-term nature of these instruments, the carrying values approximate the fair
market value. Cash equivalents include $182 and $207 of short-term investments at December 31,
2014 and December 31, 2013, respectively. Of the cash held on deposit, essentially all of the cash
balance was in excess of amounts insured by the Federal Deposit Insurance Corporation or other
foreign provided bank insurance. The Company performs periodic evaluations of these institutions
for relative credit standing and has not experienced any losses as a result of its cash
concentration. Consequently, no significant concentrations of credit risk are considered to exist.
Receivables
Trade accounts receivable are classified as current assets and are reported net of allowance for
doubtful accounts and a reserve for returns. This estimated allowance is primarily based upon our
evaluation of the financial condition of each customer, each customer’s ability to pay and historical
write-offs.
Inventories
Inventories are valued at the lower of first-in, first-out (“FIFO”) cost or market.
Property, Plant and Equipment
The Company carries property, plant and equipment at cost less accumulated depreciation. Property
and equipment additions include acquisition of property and equipment and costs incurred for
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computer software purchased for internal use including related external direct costs of materials and
services and payroll costs for employees directly associated with the project. Upon retirement or
other disposition, cost and related accumulated depreciation are removed from the accounts, and
any gain or loss is included in results of operations. Depreciation is computed on the straight-line
method using a half year convention over the estimated useful lives of the assets ranging from (i)
building and improvements - 10 to 32 years, (ii) machinery and equipment - 4 to 12 years, (iii)
furniture and fixtures - 3 to 12 years, (iv) auto and trucks - 2 to 5 years, (v) data processing – 3 to 7
years and (vi) leasehold improvements - shorter of lease or useful life.
In the ordinary course of business, we lease certain equipment, consisting mainly of autos, and
certain real property. Real property consists of manufacturing, distribution and office facilities.
Deferred Financing Costs
Deferred financing costs are amortized as expense using the effective interest rate method over the
expected term of the related debt agreement. Amortization of deferred financing costs is classified
as interest expense.
Patents and Trademarks
Patents and trademarks are amortized on the straight-line method over an estimated average useful
life of 10 years.
Long-Lived Assets
The Company continues to evaluate the recoverability of long-lived assets including property, plant
and equipment and patents. Impairments are recognized when the expected undiscounted future
operating cash flows derived from long-lived assets are less than their carrying value. If impairment
is identified, valuation techniques deemed appropriate under the particular circumstances will be
used to determine the asset’s fair value. The loss will be measured based on the excess of carrying
value over the determined fair value. The review for impairment is performed whenever events or
changes in circumstances indicate that the carrying amount of assets may not be recoverable.
Shipping and Handling
The Company periodically bills customers for shipping charges. These amounts are included in net
revenue, with the associated costs included in cost of sales.
Pensions and Other Postretirement Benefits
The Company uses appropriate actuarial methods and assumptions in accounting for its defined
benefit pension plans and non-pension postretirement benefits.
Actual results that differ from assumptions used are accumulated and amortized over future periods
and, accordingly, generally affect recognized expense and the recorded obligation in future periods.
Therefore, assumptions used to calculate benefit obligations as of the end of a fiscal year directly
impact the expense to be recognized in future periods. The primary assumptions affecting the
Company’s accounting for employee benefits as of December 31, 2014 are as follows:
• Long-term rate of return on plan assets: The required use of the expected long-term rate of
return on plan assets may result in recognized returns that are greater or less than the actual
returns on those plan assets in any given year. Over time, however, the expected long-term
rate of return on plan assets is designed to approximate actual earned long-term returns. The
Company uses long-term historical actual return information, the mix of investments that
comprise plan assets, and future estimates of long-term investment returns by reference to
external sources to develop an assumption of the expected long-term rate of return on plan
assets. The expected long-term rate of return is used to calculate net periodic pension cost. In
determining its pension obligations, the Company is using a long-term rate of return on U.S.
plan assets of 7.75% for 2014. The Company is using a long-term rate of return on French
plan assets of 3.20% for 2014. The German pension plan has no assets.
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• Discount rate: The discount rate is used to calculate future pension and postretirement
obligations. The Company is using a Mercer Bond yield curve in determining its pension
obligations. The Company is using a discount rate of 4.29% for 2014. The Company is using a
weighted average discount rate of 2.06% on its non-U.S. pension plans for 2014.
Income Taxes
Deferred tax assets and liabilities are measured using enacted tax laws and tax rates expected to
apply to taxable income in the years in which those temporary differences are expected to be
recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is
recognized in income in the period that includes the enactment date. In addition, the amounts of any
future tax benefits are reduced by a valuation allowance to the extent such benefits are not expected
to be realized on a more likely than not basis. Interest and penalties related to unrecognized tax
benefits are included as a component of tax expense.
Other Comprehensive Income (Loss)
Comprehensive income (loss) includes all other non-stockholder changes in equity. Changes in
other comprehensive income (loss) in 2014 and 2013 resulted from changes in foreign currency
translation and minimum pension liability.
Revenue Recognition
Revenues are recognized at the time products are shipped to the customer, under F.O.B shipping
point or F.O.B port terms, which is the point at which title is transferred, the customer has the
assumed risk of loss, and when payment has been received or collection is reasonably
assured. Revenues are net of discounts, rebates and allowances. Viskase records all labor, raw
materials, in-bound freight, plant receiving and purchasing, warehousing, handling and distribution
costs as a component of costs of sales.
Financial Instruments
The Company routinely enters into fixed price natural gas agreements which require us to purchase
a portion of our natural gas each month at fixed prices. These fixed price agreements qualify for the
“normal purchases” scope exception under derivative and hedging standards, therefore the natural
gas purchases under these contracts were expensed as incurred and included within cost of sales.
As of December 31, 2014, future annual minimum purchases remaining under the agreement are
$3,056.
The Company’s financial instruments include cash and cash equivalents, accounts receivable and
accounts payable. The carrying amounts of these financial assets and liabilities approximate fair
value due to the short maturities of these instruments. The fair value of the Company’s revolving
loans approximate the carrying value due to credit risk or current market rates, which approximate
the effective interest rates on those instruments. The fair value of the Company’s Term Loan is
estimated by discounting the future cash flow using the Company’s current borrowing rates for
similar types and maturities of debt.
New Accounting Pronouncements
In July 2013, the FASB issued ASU No. 2013-11, which amends FASB ASC Topic 740, Income
Taxes. This ASU requires that unrecognized tax benefits, or a portion of an unrecognized tax
benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a
net operating loss carryforward, a similar tax loss or a tax credit carryforward, except in certain
cases. This ASU is effective for fiscal years (and interim reporting periods within those years)
beginning after December 15, 2014. Earlier adoption is permitted. The adoption of this ASU will not
have any impact on our consolidated financial position, results of operations or cash flows.
In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU 2014-09),
Revenue from Contracts with Customers, which supersedes most of the current revenue recognition
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requirements. The underlying principle is that an entity will recognize revenue to depict the transfer
of goods or services to customers at an amount that the entity expects to be entitled to in exchange
for those goods or services. The guidance provides a five-step analysis of transactions to determine
when and how revenue is recognized. Other major provisions include capitalization of certain
contract costs, consideration of time value of money in the transaction price, and allowing estimates
of variable consideration
in certain
circumstances. The guidance also requires enhanced disclosures regarding the nature, amount,
timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers.
The guidance is effective for the interim and annual periods beginning on or after December 15,
2016 (early adoption is not permitted). The guidance permits the use of either a retrospective or
cumulative effect transition method. The adoption of ASU 2014-09 is not expected to have a material
impact on the Company’s consolidated financial statements.
to be recognized before contingencies are resolved
In August 2014, the FASB issued amendments that provide guidance on disclosure of uncertainties
about an entity’s ability to continue as a going concern. Under the new guidance, management will
be required to evaluate at every interim and annual reporting period whether conditions or events
exist that raise substantial doubt about an entity’s ability to continue as a going concern within one
year after the date the financial statements are issued. In addition, certain disclosure in the financial
statements will be required when substantial doubt about the entity’s ability to continue as a going
concern exists. These amendments are effective for all entities for fiscal years, and interim periods
within those years, beginning after December 15, 2016. Management does not expect the adoption
of this guidance to have a material impact on the financial statements.
2. Cash and cash equivalents
As of December 31, 2014 and December 31, 2013, cash held in foreign banks was $15,682 and
$11,028, respectively.
Letters of credit in the amount of $1,364 as of December 31, 2014 and $1,262 at December 31,
2013 were outstanding under facilities with a commercial bank, and were cash collateralized in a
restricted account.
3. Receivables, net
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December 31, 2014December 31, 2013Cash and cash equivalents$39,310 $19,079 Restricted cash1,3641,262$40,674 $20,341 December 31, 2014December 31, 2013Accounts receivable, gross$64,434 $68,728 Less allowance for doubtful accounts (915)(1,071)Less allowance for sales returns(206)(193) $63,313 $67,464
Receivables reserve activity:
4. Inventory
Inventory consisted of:
5. Property, Plant and Equipment, Net
Accumulated depreciation consisted of:
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December 31, 2014December 31, 2013December 31, 2012Beginning balance$1,264 $2,054 $2,442 Provision (recoveries) 403 177 (390) Write-offs(524)(1,020)(19) Foreign translation(22)53 21 Ending balance$1,121 $1,264 $2,054 December 31, 2014December 31, 2013Raw materials$11,684 $12,126 Work in process32,509 31,119 Finished products 32,924 28,894 $77,117 $72,139 December 31, 2014December 31, 2013 Land and improvements $2,080 $2,122 Buildings and improvements 36,738 37,267 Machinery and equipment241,576 227,684 Construction in progress 1,730 5,386 $282,124 $272,459 December 31, 2014December 31, 2013 Land and improvements $281 $257 Buildings and improvements 9,754 9,125 Machinery and equipment116,193 104,342 $126,228 $113,724
6. Other Assets
7. Accrued Liabilities
8. Debt Obligations
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December 31, 2014December 31, 2013Patents and Trademarks$4,762 $4,762 Less: Accumulated amortization(4,628)(4,610)Patents and trademarks, net 134 152 Other intangibles1,236 1,236 Less: Accumulated amortization(1,236)(1,236)Other intangibles, net0 0 Other taxes receivable6,103 - Miscellaneous345 219 $6,582 $371 December 31, 2014December 31, 2013Compensation and employee benefits$17,160 $18,295 Taxes payable9,922 13,765 Accrued volume and sales rebates1,444 1,852 Accrued interest payable1,968 9,825 Other2,887 3,422 $33,381 $47,159 December 31, 2014December 31, 2013Short-term debt: Europe unsecured loan$607$690 Bank term loan2,750- Revolving credit facility- 12,000 Total short-term debt3,35712,690Long-term debt: Bank term loan, net of discount268,891- 9.875% Senior secured notes, net of discount- 214,505 Europe unsecured loan4581,207 Other311321 Total long-term debt269,660216,033 Total debt$273,017$228,723
Revolving Credit Facility
On January 30, 2014, the Company entered into an Amendment Agreement to the $25,000 Revolving
Credit Facility, together with an amended Loan Agreement, with Icahn Enterprises Holdings L.P.
Drawings under the amended Revolving Credit Facility bear interest at daily three month LIBOR plus
2.0%. The amended Revolving Credit Facility also provides for an unused line fee of 0.375% per
annum.
Indebtedness under the amended Revolving Credit Facility is secured by liens on substantially all of
the Company’s domestic and Mexican assets, with liens on (i) accounts, inventory, lockboxes, deposit
accounts and investment property (the “ABL Priority Collateral’) to be contractually senior to the liens
securing the Term Loan (as hereafter defined) pursuant to an intercreditor agreement, (ii) real
property, fixtures and improvements thereon, equipment and proceeds thereof (the “Fixed Asset
Priority Collateral”), to be contractually subordinate to the liens securing the Term Loan pursuant to
such intercreditor agreement, and (iii) all other assets, to be contractually pari passu with the liens
securing the Term Loan pursuant to such intercreditor agreement. Our future direct or indirect
material domestic subsidiaries are required to guarantee the obligations under the amended
Revolving Credit Agreement, and to provide security by liens on their assets as described above.
The amended Revolving Credit Facility contains various covenants which restrict the Company’s
ability to, among other things, incur indebtedness, create liens on our assets, make investments,
enter into merger, consolidation or acquisition transactions, dispose of assets (other than in the
ordinary course of business), make certain restricted payments, enter into sale and leaseback
transactions and transactions with affiliates, in each case subject to permitted exceptions. The
amended Revolving Credit Facility also requires that we comply with certain financial covenants,
including meeting a minimum EBITDA requirement and limitations on capital expenditures, in the
event our usage of the Revolving Credit Facility exceeds 90% of the facility amount. The Company is
in compliance with the Revolving Credit Facility covenants as of December 31, 2014.
The amended Revolving Credit Facility had no borrowings as of December 31, 2014.
In its foreign operations, the Company has unsecured lines of credit with various banks providing
approximately $8,000 of availability. There were borrowings of $1,065 under the lines of credit at
December 31, 2014. The borrowing has an interest rate of 3 month EUR LIBOR plus a margin of
2.16% with quarterly installments due through July 15, 2016.
Term Loan Facility
On January 30, 2014, the Company entered into a Credit Agreement with UBS AG, Stamford Branch
(“UBS”), as Administrative Agent and Collateral Agent, and the Lenders parties thereto, providing for a
$275,000 senior secured covenant lite term loan facility (“Term Loan”). The Term Loan bears interest
at a LIBOR Rate plus 3.25% (with the LIBOR Rate carrying a 1.00% floor or at a Base Rate equal to
the sum of (1) the greatest of (a) the Prime Rate, (b) the Federal Funds Effective Rate plus 0.50%, (c)
one-month LIBOR plus 1.0%, or (d) 2.0%, plus (2) 2.25%). As of December 31, 2014, the interest rate
was 4.25% on the Term Loan. The Term Loan has a 1% per annum amortization with a maturity date
of January 30, 2021. The Term Loan is subject to certain additional mandatory prepayments upon
asset sales, incurrence of indebtedness not otherwise permitted, and based upon a percentage of
excess cash flow. Prepayments on the Term Loan may be made at any time, subject to a prepayment
premium of 1% for certain prepayments during the first six months of the term.
Indebtedness under the Term Loan is secured by liens on substantially all of the Company’s domestic
and Mexican assets, with liens on (i) the Fixed Asset Priority Collateral, to be contractually senior to
the liens securing the Revolving Credit Facility pursuant to the intercreditor agreement, (ii) the ABL
Priority Collateral, to be contractually subordinate to the liens securing the Revolving Credit Facility
pursuant to the intercreditor agreement, and (iii) all other assets, to be contractually pari passu with the
liens securing the Revolving Credit Facility pursuant to the intercreditor agreement. Our future direct
or indirect material domestic subsidiaries are required to guarantee the obligations under the Term
Loan, and to provide security by liens on their assets as described above.
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9.875% Senior Secured Notes due 2018
In December 2009, Viskase issued $175 million of 9.875% Senior Secured Notes due 2018 (the
“Viskase 9.875% Notes”). The Viskase 9.875% Notes bore interest at a rate of 9.875% per annum,
payable semi-annually in cash on January 15 and July 15, commencing on July 15, 2010. In May
2010, Viskase issued an additional $40 million aggregate principal amount of Viskase 9.875% Notes
under the indenture governing the Viskase 9.875% Notes Indenture (the “Viskase 9.875% Notes
Indenture”). The Viskase 9.875% Notes had a maturity date of January 15, 2018. In connection with
certain financing transactions, the Viskase 9.875% Notes were paid off in full on January 30, 2014.
The Company incurred a loss of $15,739 on early redemption consisting of the premium on early
redemption and the write off of the remaining deferred fees and discount related to the Viskase
9.875% Notes.
Debt Maturity
The aggregate maturities of debt (1) for each of the next five years are:
(1) The aggregate maturities of debt represent amounts to be paid at maturity and not
the current carrying value of the debt.
9. Capital Lease Obligations
The Company has entered into capital lease obligations to acquire certain equipment and building
improvements for its manufacturing facilities. The equipment leases have a term of 3 to 5 years and
the building improvement lease has a term of 5 years. The Company has determined that
automobiles leased by the Company are capital leases with an average term of 4 years. The
depreciation of capital leases is included in depreciation expense.
The following is an analysis of leased property under capital leases by major classes.
17
20152016201720182019ThereafterTerm Loan Facility $ 2,750 $ 2,750 $ 2,750 $ 2,750 $ 2,750 $ 258,500 Europe lines of credit609 456 - - - - Other - - - - - 976 $ 3,359 $ 3,206 $ 2,750 $ 2,750 $ 2,750 $ 259,476 20142013Building and improvements$492$543Machinery and equipment2,7102,832Less: Accumulated depreciation(2,528)(2,514)$674$861
The following is a schedule by years of minimum future lease payments as of December 31, 2014.
10. Operating Leases
The Company has operating lease agreements for machinery, equipment and facilities. The majority
of the facility leases require the Company to pay maintenance, insurance and real estate taxes.
Certain of these leases contain escalation clauses and renewal options.
Future minimum lease payments for operating leases that have initial or remaining non-cancelable
lease terms in excess of one year as of December 31, 2014, are:
Total rent expense during 2014, 2013 and 2012 amounted to $3,525, $4,617 and $4,343
respectively.
11. Retirement Plans
The Company and its subsidiaries have defined contribution and defined benefit plans varying by
country and subsidiary.
The Company’s operations in the United States, France, Germany and Canada historically offered
defined benefit retirement plans (“Plan”) to their employees. Most of these benefits have been
terminated, resulting in various reductions in liabilities and curtailment gains.
Included in accumulated other comprehensive loss, net of tax, as of December 31, 2014 are the
following amounts not yet recognized in net periodic benefit cost:
Amounts included in other comprehensive loss expected to be recognized as a component of net
periodic benefit cost for the year ending December 31, 2015 are:
18
Year ending December 31,2015$31420162292017109201843201913 Thereafter- Total minimum payments required708Less amount representing interest(116)Present value of net minimum lease payments$5922015$3,513 20163,163 20172,525 20182,542 20191,537 Total thereafter9,801 Total minimum lease payments$23,081 U.S. Pension Benefits Non U.S. Pension BenefitsNet actuarial loss Prior service credit ($46,554)($3,990)4 -
The measurement date for all defined benefit plans is December 31. The year end status of the
plans is as follows:
The funded status of these pension plans as a percentage of the projected benefit obligation was 72% in
2014 compared to 80% in 2013.
19
U.S. Pension Benefits Non U.S. Pension BenefitsNet actuarial loss ($4,084)($199)Non U.S. Pension Benefits2014201320142013 Change in benefit obligation:Projected benefit obligation at beginning of year$143,295$163,156$11,558$10,570Service cost- - 426430Interest cost7,2476,625329404Actuarial loss (gain) 22,963(18,533)1,484422Benefits paid(8,047)(7,953)(490)(747)Currency translation- - (1,382)479Estimated benefit obligation at end of year$165,458$143,295$11,924$11,558Change in plan assets:Fair value of plan assets at beginning of year$118,376$104,114$5,419$5,692Actual return on plan assets6,76318,008176200Employer contribution5,0334,206- - Benefits paid(8,047)(7,953)- (730)Currency translation- - (647)257Fair value of plan assets at end of year$122,126$118,376$4,949$5,419Unfunded status of the plan($43,332)($24,919)($6,976)($6,139)U.S. Pension Benefits U.S. Pension Benefits Non U.S. Pension Benefits2014201320142013Amounts recognized in statement of financial position:Current liabilities($82)($82)($168)($175)Noncurrent liabilities(43,250)(24,837)(6,809)(5,963)Net amount recognized($43,332)($24,919)($6,976)($6,139)U.S. Pension Benefits Non U.S. Pension Benefits2014201320142013Projected benefit obligation$165,458 $143,295 $11,924 $11,558 Fair value of plan assets$122,126$118,376$4,949$5,419
Components of net periodic benefit cost for the years ended December 31:
Weighted average assumptions used to determine the benefit obligation and net periodic benefit cost as
of December 31:
The Company evaluates its discount rate assumption annually as of December 31 for each of its
retirement-related benefit plans. The Company is using a Mercer bond model for determining its U.S.
pension benefits. The Company is using a weighted average discount rate of 2.06% on its non U.S.
pension plans for 2014.
The Company’s expected return on plan assets is evaluated annually based upon a study which
includes a review of anticipated future long-term performance of individual asset classes, and
consideration of the appropriate asset allocation strategy to provide for the timing and amount of benefits
included in the projected benefit obligation. While the study gives appropriate consideration to recent
fund performance and historical returns, the assumption is primarily a long-term prospective rate.
The Company’s overall investment strategy is to achieve growth through a mix of approximately 75% of
investments for long-term growth and 25% for near-term benefit payments with a wide diversification of
asset types, fund strategies, and fund managers. The target allocations for plan assets are 64% equity
securities, 17% hedge funds and 19% to fixed income investments. Equity securities primarily include
investments in large-cap, mid-cap and small-cap companies primarily located in the United States and
international developed markets. Fixed income securities include corporate bonds of companies from
diversified industries, mortgage-backed securities, and U.S. Treasuries. Other types of investments
include investments in hedge funds that follow several different strategies.
In accordance with FASB guidance, Plan management uses the following methods and significant
assumptions to estimate fair value of investments.
Mutual funds - Valued at the net asset value (“NAV”) of shares held by the Plan at year-end, which is
obtained from an active market.
Collective trust funds - Value provided by the administrator of the fund. The NAV is based on the
value of the underlying assets owned by the fund, minus its liabilities, and then divided by the
number of shares outstanding. The NAV's unit price is quoted on a private market that is not active.
Hedge funds - Value provided by the administrator of the fund. The pricing for these funds is
provided monthly by the fund to determine the quoted price.
The fair values of the Company’s pension plan asset allocation at December 31, 2014 and 2013, by
asset category are as follows:
20
Non U.S. Pension Benefits201420132012201420132012Component of net period benefit costService cost-$ -$ -$ $471$415$323Interest cost7,2056,6256,965364390423Expected return on plan assets(9,055)(7,877)(7,321)(178)(194)(178)Amortization of prior service cost- - (1) - - - Amortization of actuarial loss8634,2403,429100 88 12 ($987)$2,988$3,072$757$699$580U.S. Pension BenefitsU.S. Pension Benefits Non U.S. Pension Benefits2014201320142013Discount rate4.29%5.23%2.06%3.28%Expected return on plan assets7.75%7.75%3.20%3.50%Rate of compensation increaseN/AN/A2.27%3.00%
21
Fair Value Measurement atDecember 31, 2014Quoted Prices in Active Markets for Identical AssetsSignificant Observable InputsSignificant Unobservable InputsAsset Category Total(Level 1)(Level 2)(Level 3)Cash equivalents$5,094$5,094-$ -$ Equity securities: U.S. companies26,189 26,189 - - International companies 4,682 4,682 - - U.S-Large Cap Equity Growth 13,551 13,551 - - U.S-Mutual Funds 28,360 - 28,360 - Fixed income securities:- Government Treasuries1,999 1,999 - - Mortgage-backed securities 499 - 499 - Corporate Bond5,942 5,942 - - High yield fund14,399 14,399 - - Other types of investments: Hedge funds 21,336 - - 21,336 Real Estate75 75 - - Total $122,126$71,93128,859$ 21,336$ Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Combined Hedge Funds$20,626 Total realized loss206 Change in unrealized depreciation1,182 Cost of purchases5,311 Proceeds from sales(5,989) $21,336Beginning balance at January 1, 2014Ending balance at December 31, 2014
The following table provides a summary of the estimated benefit payments for the postretirement
plans for the next five fiscal years individually and for the following five fiscal years in the aggregate.
22
Fair Value Measurement atDecember 31, 2013Quoted Prices in Active Markets for Identical AssetsSignificant Observable InputsSignificant Unobservable InputsAsset Category Total(Level 1)(Level 2)(Level 3)Cash equivalents$4,211$4,211-$ -$ Equity securities: U.S. companies37,660 37,660 - - International companies 5,355 5,355 - - U.S-Large Cap Equity Growth 12,991 12,991 - - U.S-Mutual Funds 14,875 - 14,875 - Fixed income securities:- Government Treasuries1,763 1,763 - - Mortgage-backed securities 1,062 - 1,062 - Corporate Bond5,704 5,704 - - High yield fund14,011 14,011 - - Other types of investments: Hedge funds 20,626 - - 20,626 Real Estate84 84 - - Preferred Stock34 - 34 - Total $118,376$81,77915,971$ 20,626$ Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Combined Hedge Funds$29,520 Total realized loss(270) Change in unrealized depreciation3,141 Cost of purchases32,198 Proceeds from sales(43,963) $20,626Ending balance at December 31, 2013Beginning balance at January 1, 2013Total Estimated Benefit PaymentsU.S.Non U.S 2015$8,762$4972016 9,0285452017 9,1323612018 9,2657372019 9,4727752020-2024 49,3502,630
The Company’s expected contribution for the 2015 fiscal year is $3,343 for the U.S. There is no
funding requirement for non U.S. pension plans.
Savings Plans
The Company also has defined contribution savings and similar plans for eligible employees, which
vary by subsidiary. The Company’s aggregate contributions to these plans are based on eligible
employee contributions and certain other factors. The Company expense for these plans was
$1,230, $1,120 and $875 in 2014, 2013 and 2012, respectively.
International Plans
The Company maintains various pension and statutory separation pay plans for its European
employees. The expense, not including the French and German pension plan, in 2014, 2013, and
2012 was $787, $854 and $825, respectively. As of their most recent valuation dates, for those plans
where vested benefits exceeded plan assets, the actuarially computed value of vested benefits
exceeded those plans’ assets by approximately $1,672.
12. Capital Stock, Treasury Stock and Paid in Capital
Authorized shares of preferred stock ($0.01 par value per share) and common stock ($0.01 par
value per share) for the Company are 50,000,000 shares and 50,000,000 shares, respectively.
In 2004, the Company purchased 805,270 shares of its common stock from the underwriter for a
purchase price of $298. The common stock has been accounted for as treasury stock
13. Income Taxes
Income tax provision (benefit) consisted of:
The reconciliation of income tax provision (benefit) attributable to earnings differed from the amounts
computed by applying the U.S. Federal statutory income tax rate to earnings by the following
amounts:
23
201420132012CurrentDomestic$52 $195 $123 Foreign 2,540 5,540 6,023 Total current 2,592 5,735 6,146 Deferred Domestic 2,429 (51,498) - Foreign (1,963) (5,696) (1,400)Total deferred 466 (57,194) (1,400) Total$3,058 ($51,459)$4,746
Temporary differences and net operating loss carryforwards that give rise to a significant portion of
deferred tax assets and liabilities for 2014 and 2013 are as follows:
In the consolidated balance sheets, these deferred tax assets and liabilities are classified as either
current or non-current based on the classification of the related liability or asset for financial reporting.
A deferred tax asset or liability that is not related to an asset or liability for financial reporting, including
deferred taxes related to carry forwards, is classified according to the expected reversal date of the
temporary differences as of the end of the year.
A valuation allowance is provided when it is more likely than not that some portion or all of the net
deferred tax assets will not be realized. Management beleives that is more likely than not that its net
deferred tax assets will be realized based on the weight of positive evidence and future income except
with respect to the loss in Poland. The Company has established a valuation allowance of $0.3 million
in Poland. The Company has gross U.S. federal net operating loss carryforwards at December 31, 2014
24
201420132012Domestic($1,338)$2,705 $5,738 Foreign 14,226 (9,481) 6,886 Total$12,888 ($6,776)$12,624 Computed income tax provision $4,508($2,304)$4,292State and local taxes, net of federal tax55 137 244 Foreign taxes, net(1,502) 1,137 1,246 Valuation allowance286 (52,675) (2,630) Uncertain tax positions - (benefit) expense (2,328) 395 1,317 Other, net2,039 1,851 277 Total income tax expense $3,058 ($51,459)$4,746 Computed income tax provision 35.0%34.0%34.0%State and local taxes, net of federal tax0.4%-2.0%1.9%Foreign taxes, net-11.7%-16.8%9.9%Valuation allowance2.2%777.4%-20.8%Uncertain tax positions - expense (benefit) -18.1%-5.8%10.4%Other, net15.8%-27.3%2.2%Effective income tax rate23.7%759.4%37.6%20142013Deferred tax asset Provisions not currently deductible$4,810$4,266 Inventory basis differences5,0253,622 Foreign exchange and other87158 Stock options754847 Pension and healthcare 16,94810,477 Net operating loss carryforwards41,68541,620Total deferred tax asset$69,309$60,990Deferred tax liability Property, plant, and equipment($13,841)($13,287) Intangible asset4 - Foreign exchange and other(3,300)(3,611)Total deferred tax liability($17,137)($16,898)$52,172$44,092
and December 31, 2013 of $100.1 million and $95.1 million, respectively, with amounts beginning to
expire in 2024. The Company has gross foreign net operating loss carryforwards at December 31, 2014
and December 31, 2013 of $15.4 million and $15.3 million, respectively and has an unlimited
carryforward period.
The Company joins in filing a United States consolidated Federal income tax return including all of its
domestic subsidiaries.
Uncertainty in Income Taxes
The uncertain tax positions as of December 31, 2014 totaled $5,890. The following table
summarizes the activity related to the unrecognized tax benefits.
Effective January 1, 2007, the Company adopted ASC 740 10 05, formerly FIN 48. This Interpretation
clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements
in accordance with ASC Statement No. 740, "Income Taxes." This Interpretation prescribes a
recognition threshold and measurement approach for the financial statement recognition and
measurement of a tax position taken or expected to be taken in a tax return.
This Interpretation also provides guidance on derecognition, classification, interest and penalties,
accounting in interim periods, disclosure and transition. In 2014, the Company recognized an
approximate net decrease of $2,058 to reduce the reserves for uncertain tax positions. The majority of
the decrease in the reserve is due to a lapse in the statute of the uncertain tax positions with the
Brazililian and French taxing authorities.
Approximately $5,890 of the total gross unrecognized tax benefits represents the amount that, if
recognized, would affect the effective income tax rate in future periods. The Company and its
subsidiaries are subject to U.S. federal income tax as well as income tax of multiple state and foreign
jurisdictions. The Company has substantially concluded all U.S. federal income tax matters for years
through 2010. Substantially all material state and local and foreign income tax matters have been
concluded for years through 2009. Based on the expiration of the statute of limitations for certain
jurisdictions, it is reasonably possible that the unrecognized tax benefits will decrease in the next 12
months by approximately $1,100.
The Company's continuing practice is to recognize interest and/or penalties related to income tax
matters in income tax expense. During the years ended December 31, 2014 and 2013, the Company
recorded adjustments for interest of $(167) and $120, respectively, and for penalties of $(434) and $76,
respectively related to these unrecognized tax benefits. In total, as of December 31, 2014 and 2013, the
Company has recorded a liability of interest of $117 and $284, respectively, and $352 and $786,
respectively, for potential penalties.
25
(in thousands)20142013Unrecognized tax benefits as of January 1$7,937 $7,770Increases in positions taken in a prior period - 329 Decreases in positions taken in a prior period (507)(60)Increases in positions taken in a current period 651 578 Decreases in positions taken in a current period - Decreases due to settlements (100)(200)Decreases due to lapse of statute of limitations(2,091) (480) Unrecognized tax benefits as of December 31$5,890$7,937
14. Contingencies
The Company from time to time is involved in various other legal proceedings, none of which are
expected to have a material adverse effect upon results of operations, cash flows or financial condition.
15. Stock-Based Compensation (Dollars in Thousands, Except Per Share Amounts)
Stock-based compensation cost is measured at the grant date based on fair value of the award and is
recognized as an expense on a straight-line basis over the requisite service period, which is the vesting
period. Included in net income is non-cash compensation expense of $60 for the year ended December
31, 2014, $48 for the year ended December 31, 2013 and $1 for the year ended December 31, 2012.
The fair values of the options granted during 2013, 2009, 2007 and 2005 were estimated on the date of
grant using the binomial option pricing model. The assumptions used and the estimated fair values are
as follows:
In April 2013, the Company granted non-qualified stock options to its current chief administrative officer
for the purchase of 325,000 shares of its common stock under an employment agreement. Options were
granted at the fair market value at date of grant and will vest one third each on December 31, 2013,
December 31, 2014 and December 31, 2015. The options for the chief administrative officer expire on
April 16, 2018.
In February 2009, the Company granted non-qualified stock options to its former chief financial officer for
the purchase of 300,000 shares of its common stock. Options were granted at the fair market value at
date of grant and are fully vested. The options were exercised during the second quarter of 2012.
In October 2007, the Company granted non-qualified stock options to its current chief executive officer
for the purchase of 1,500,000 shares of its common stock under an employment agreement. Options
were granted at the fair market value at date of grant and are fully vested. The options for the chief
executive officer expire on October 29, 2017.
The Company has outstanding non-qualified stock options granted to other members of management for
the purchase of 95,000 shares of its common stock. Options were granted at, or above, the fair market
value at date of grant and are fully vested. The options granted to other members of management expire
ten years from the date of grant.
26
2013200920072005Expected term5 years10 years10 years10 yearsExpected stock volatility17.33%35.10%23.04%14.88%Risk-free interest rate1.75%2.87%4.39%4.17%Expected forfeiture rate0.00%0.00%14.00%35.00%Fair value per share$0.51$0.09$0.77$1.09
The Company's outstanding options were:
Vested and exercisable options as of December 31, 2014 were 1,726,668 with a weighted average
share price of $2.82.
16. Research and Development Costs
Research and development costs are expensed as incurred and totaled $5,662, $3,856 and $3,845
for 2014, 2013, and 2012, respectively.
17. Related-Party Transactions
As of December 31, 2014, Icahn Enterprises L.P. owned approximately 73.5% of our outstanding
common stock. There were no new shares of common stock purchased during the year ended
December 31, 2014.
Insight Portfolio Group LLC (“Insight Portfolio Group”) is an entity formed and controlled by Mr. Icahn
in order to maximize the potential buying power of a group of entities with which Mr. Icahn has a
relationship in negotiating with a wide range of suppliers of goods, services and tangible and
intangible property at negotiated rates.
On January 1, 2013, Viskase acquired a minority equity interest in Insight Portfolio Group and
agreed to pay a portion of Insight Portfolio Group’s operating expenses, which is approximately $197
in 2014. A number of other entities with which Mr. Icahn has a relationship also acquired equity
interests in Insight Portfolio Group and also agreed to pay certain of Insight Portfolio Group’s
operating expenses in 2014.
During the year ended December 31, 2014 and December 31, 2013, the Company purchased $44
and $46, respectively, in telecommunication services in the ordinary course of business from XO
Communications, Inc., an affiliate of Icahn Enterprises L.P.
Icahn Enterprises L.P. was the lender on the Company’s Revolving Credit Facility as of December
31, 2014. The Company paid Icahn Enterprises L.P. service, commitment fees, interest and
amendment fees of $223 and $403 during each of the years ended December 31, 2014 and 2013.
18. Business Segment Information and Geographic Area Information
The Company primarily manufactures and sells cellulosic food casings. The Company’s operations
are primarily in North America, South America, Europe and Asia. Intercompany sales and charges
(including royalties) have been reflected as appropriate in the following information. Certain items
27
Outstanding OptionsWeighted AverageWeighted AverageShares Under Weighted AverageRemainingGrant-DateOptionExercise PriceContractual LifeFair ValueOutstanding, December 31, 20121,700,0001.84$ 54 months0.70$ Vested and exercisable at Dec. 31, 20121,700,000 1.84$ 54 months0.70$ Granted325,000 8.00$ 60 months0.51$ Exercised- -$ - - Forfeited20,000 2.90$ - - Outstanding, December 31, 20132,005,0001.56$ 58 months0.59$ Vested and exercisable at Dec. 31, 20131,788,333 2.23$ 43 months0.66$ Granted- -$ - - Exercised170,000 2.90$ - - Forfeited- -$ - - Outstanding, December 31, 20141,835,0002.82$ 35 months0.63$ Vested and exercisable at Dec. 31, 20141,726,668 2.82$ 34 months0.64$
are maintained at the Company’s corporate headquarters and are not allocated geographically. They
include most of the Company’s debt and related interest expense and income tax benefits.
Reporting Segment Information:
28
201420132012Net salesNorth America$199,220$203,445$188,514South America52,87953,18947,059Europe142,944146,682140,891Asia30,19923,4757,122Other and eliminations(60,039)(55,805)(41,063)$365,203$370,986$342,523Operating income North America$28,386$23,552$23,532South America2,819(21,664)1,420Europe9,00111,9119,550Asia5,7723,404435$45,978$17,203$34,937Identifiable assetsNorth America$222,747$213,278$177,862South America55,25646,61936,757Europe113,189114,014108,383Asia37,78528,11723,259$428,977$402,028$346,261201420132012Net Sales by market Emerging$184,376$191,407$158,477Mature180,827179,579184,046 $365,203$370,986$342,523Net Sales by countryUnited States$101,979$102,765$101,632Brazil29,57227,80528,115Italy31,16131,21130,996Germany12,86012,66112,318France14,83414,63913,078Other international174,797181,905156,384$365,203$370,986$342,523
19. Interest Expense, Net
Net interest expense consisted of:
20. Changes in Accumulated Other Comprehensive Loss
21. Subsequent Events
Viskase evaluated its December 31, 2014 consolidated financial statements for subsequent events
through February 27, 2015, the date the consolidated financial statements were available to be
issued. There were no subsequent events requiring disclosure identified.
29
December 31, 2014December 31, 2013December 31, 2012Interest expense$14,174$22,908$22,868Less Capitalized interest17(432)(1,902) Interest expense, net$14,191$22,476$20,966Accrued Employee BenefitsTranslation AdjustmentsTotalBalance at December 31, 2013($37,191)($9,753)($46,944)Other comprehensive loss before reclassifications(17,447)(9,530)(26,977)Reclassifications from accumulated other comprehensive loss to earnings963- 963Balance at December 31, 2014($53,675)($19,283)($72,958)Amounts Reclassified from Accumulated Other Comprehensive Loss Affected Line Items in the Consolidation Statement of Operations and Comprehensive LossAccrued Employee Benefits Amortization of net actuarial loss $761Cost of sales Amortization of net actuarial loss $202Selling, general and administrative$963