Related Person Transactions

9 Months Ended

Sep. 30, 2012

Related Person Transactions [Abstract]

Related Party Transactions [Text Block]

Related Person Transactions —

At September 30, 2012 the Company had two term loans of approximately $180,000 ($140,000 and 29,000 euro) outstanding under a term loan facility with Danfoss A/S, the Company's majority stockholder. The outstanding term loans at December 31, 2011 were approximately $200,000 ($140,000 and 45,000 euro). In September 2012 the Company paid down the term loan by approximately $20,000 (16,000 euro). The Company incurred interest expense of $4,126 and $13,232 for the three and nine months ended September 30, 2012, respectively, and $4,690 and $16,244 for the three and nine months ended September 30, 2011, respectively, related to the debt with Danfoss A/S.

In July 2012 upon the request of the Company, the borrowing capacity of the revolving credit facility with Danfoss A/S, the Company's majority stockholder, was permanently reduced to $0. In June 2011 and September 2011 upon the request of the Company, the borrowing capacity of the revolving credit facility was also reduced.

As a result of the reductions in borrowing capacity and term loan reductions the Company recognized loss on early retirement of debt of $1,254 during the three and nine months ended September 30, 2012, consisting of a prepayment penalty of $803 and $451 for the write-off off unamortized deferred financing costs. The Company recognized $277 and $1,176 of loss on early retirement of debt in the three and nine months ended September 30, 2011, respectively, due to the write-off of unamortized deferred financing costs.

In August 2011 the Company entered into 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 cash deposited with Danfoss A/S was $319,518 and $168,450, at September 30, 2012 and December 31, 2011, respectively. The Company had four deposits of cash with Danfoss A/S at September 30, 2012 with a weighted average interest rate of 0.40% and terms ranging from 7 to 34 days. The Company recorded interest income of $292 and $1,014 during the three and nine months ended September 30, 2012, respectively, and $193 during the three and nine months ended September 30, 2011 related to this agreement.

In October 2010 the Company entered into 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 $19,048 and $10,277 at September 30, 2012 and December 31, 2011, respectively. Interest is earned based on short term financing rates and was $20 and $47 during the three and nine months ended September 30, 2012, respectively, and $9 and $19 during the three and nine months ended September 30, 2011, respectively, related to this agreement.