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Airedale Facility Fire
9 Months Ended
Dec. 31, 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, which was leased, 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 planning for the reconstruction of the facility and has transferred its operations to temporary facilities.

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 costs 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. Since the date of the fire, the Company has received cash advances of $24.3 million from its insurance provider for covered losses, written-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 $8.2 million.  These losses and costs, which totaled $14.3 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.  The Company has estimated the cost of reconstruction to be approximately $50.0 million and, during the second quarter of fiscal 2014, recorded a liability of $50.0 million and a related receivable from the insurance provider for the same amount.  During the third quarter of fiscal 2014, the Company received $10.0 million of cash advances in excess of recovery costs and losses incurred to date, which reduced the related insurance receivable to $40.0 million.  As of December 31, 2013, the liability to rebuild the facility was $50.0 million ($41.0 million within other current liabilities and $9.0 million within other noncurrent liabilities) and the receivable from the Company’s insurance provider was $40.0 million ($31.0 million within other current assets and $9.0 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 during which the reimbursements are realized.  The Company expects that a portion of insurance reimbursements for lost profits related to fiscal 2014 will not be realized until fiscal 2015.