Related Person Transactions

9 Months Ended

Sep. 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 September 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 $4,690 and $16,244 for the three and nine months endedSeptember 30, 2011 respectively, related to the debt with Danfoss A/S.

In September 2011, upon the request of the Company, the borrowing capacity of the revolving credit facility was reduced to approximately $100,000 ($75,000 and 20,000 euro). 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 $277 and $1,176 of loss on early retirement of debt due to the write-off of unamortized deferred financing costs in the three and nine months endedSeptember 30, 2011, respectively.

In August 2011, the Company entered an Agreement with Danfoss A/S, the Company's majority stockholder, to loan excess cash to Danfoss A/S at the EURIBOR or LIBOR rate plus 0.25%. The Company had four deposits of cash with Danfoss A/S, totaling $133,182, at September 30, 2011. The deposits have a weighted average interest rate of 1.37% and terms ranging from 7 to 35 days. The Company recorded interest income of $193 during the three and nine months endedSeptember 30, 2011.

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 nine months endedSeptember 30, 2011 the Company generated taxable income in Denmark and is expected to utilize the remaining net operating losses generated by the Company in Denmark in prior years. The Company is expected to remit approximately $13,900 to Danfoss A/S in 2011that will be recorded as a dividend distribution.

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 on a daily basis as needed. The cash deposited with Daikin was $7,506 and $986 at September 30, 2011 and December 31, 2010, respectively. Interest is earned based on short term financing rates and was $9 and $19 during the three and nine months endedSeptember 30, 2011, respectively.

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 September 30, 2011 or December 31, 2010. The Company recorded interest income of $95 and $244 during the three and nine months endedSeptember 30, 2010.