Note 6. Related Person Transactions Level 1 (Notes)

6 Months Ended

Jun. 30, 2011

Related Person Transactions [Abstract]

Related Party Transactions [Text Block]

Related Person Transactions —

In September 2010, the Company entered into an amended and restated credit agreement with Danfoss A/S (the Danfoss Agreement), the Company's majority stockholder, which includes both term loan and revolving credit facilities. The Danfoss Agreement replaced a loan agreement with Danfoss A/S which had been in place since November 2009. The principal amount outstanding under the revolving credit facility at June 30, 2011 and December 31, 2010 was $0 and $50,455, respectively. The revolving loans had a weighted average interest rate of 4.30% at December 31, 2010. The Company incurred interest expense of $5,768 and $11,554 for the three and six months endedJune 30, 2011 respectively, related to the debt with Danfoss A/S.

In June 2011, upon the request of the Company, the borrowing capacity of the revolving credit facility was reduced to approximately $150,000 ($125,000 and 20,000 euro). As a result of the reductions in borrowing capacity the Company recognized $899 of loss on early retirement of debt in the three and six months endedJune 30, 2011 due to the write-off of unamortized deferred financing costs.

The Company has a tax sharing agreement with Danfoss A/S whereby subsidiaries in Denmark file a joint tax return with Danfoss A/S as required under the laws of Denmark. The Company has elected to provide for taxes on a separate entity basis for U.S. GAAP. The difference in the amount of cash received or paid under these two methods will be recorded as a capital contribution or dividend distribution when the cash is received or paid. For the six months endedJune 30, 2011 the Company generated taxable income in Denmark and is expected to remit the related tax amount of approximately $11,000 to Danfoss A/S in 2011. If the Company were to file a stand-alone tax return in Denmark due to a change in the structure of the relationship with Danfoss A/S, the net operating losses generated by the Company in prior years would no longer be available to offset future income generated by the Company.

In October 2010 the Company entered an Agreement with Daikin Industries Ltd., a noncontrolling interest owner in an entity consolidated by the Company, to loan excess cash or borrow funds as needed. The principal balance receivable from Daikin was approximately $5,300 and $1,000 at June 30, 2011 and December 31, 2010, respectively, and is included in other current assets. Interest earned during the three and six months endedJune 30, 2011 was minimal.

The Company loans excess cash to Agri-Fab, Inc., a noncontrolling interest partner in Hydro-Gear Limited Partnership, a U.S. limited partnership. There was no principal balance receivable from Agri-Fab, Inc. at June 30, 2011 or December 31, 2010. The Company recorded interest income of $89 and $149 during the three and six months endedJune 30, 2010.