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Airedale Facility Fire
6 Months Ended
Sep. 30, 2013
Airedale Facility Fire [Abstract]  
Airedale Facility Fire
Note 2: Airedale Facility Fire

On September 6, 2013, a fire caused significant destruction to the Company’s Airedale manufacturing facility and offices in Rawdon (Leeds), United Kingdom.  Airedale’s financial results are reported within the Company’s Commercial Products segment. There were no injuries caused by the fire.  The Rawdon facility was used to manufacture cooling products and solutions for a variety of applications, including data centers, clean rooms, retail, leisure and process cooling. The fire caused the Company to temporarily suspend manufacturing and certain administrative operations at the Rawdon site; however, the Company is currently in the initial stages of planning for the reconstruction of the facility and has secured a temporary production facility.

The Company maintains insurance coverage for damage to the leased facility, equipment, inventory, other assets, business interruption and lost profits, and recovery related expenses caused by the fire.  The Company believes that reimbursement from its insurance provider is probable for substantially all losses and expenses that are directly attributable to the fire.  In the second quarter of fiscal 2014, the Company recorded expenses of $0.5 million, primarily related to the write-off of certain assets (leasehold improvements) that were not covered by insurance, and the Company received an advance of $7.9 million from its insurance provider for covered losses.  Also in the second quarter of fiscal 2014, the Company wrote-off inventory of $4.7 million and equipment with a net book value of $1.4 million, and incurred costs directly attributable to the fire totaling $1.7 million.  These losses and costs, which totaled $7.8 million, were recorded in the same statement of operations line item as the related insurance recovery.
 
The terms of the Rawdon lease agreement obligate the Company to rebuild the damaged facility, and the Company has estimated the cost of this reconstruction to be approximately $50.0 million.  Because it is probable that the costs to rebuild the facility will be covered by the Company’s insurance provider, the Company has recorded a liability of $50.0 million ($40.0 million within other current liabilities and $10.0 million within other noncurrent liabilities) and a corresponding receivable from the insurance provider for $50.0 million ($40.0 million within other current assets and $10.0 million within other noncurrent assets).  The Company expects to record insurance reimbursements related to lost profits (business interruption) during the recovery period in the quarter in which such reimbursements are realized. It is possible that the insurance reimbursements for lost profits related to fiscal 2014 may not be realized until fiscal 2015.