XML 113 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Sale of Businesses and Termination of Joint Venture
3 Months Ended
Dec. 31, 2012
Sale of Businesses and Termination of Joint Venture: [Abstract]  
Sale of business [Text Block]
Sale of Businesses and Termination of Joint Ventures:
In 2009 the Company sold the assets of its steering column business which was located in Kolding, Denmark. In 2010 the Company recognized expense in the Work Function segment of approximately $1,100 related to future building lease costs because the buyer moved production operations to a different location and the Company was not able to sublease the building. The lease was terminated in 2012.
In December 2008 the Company signed a sales agreement to sell its alternating current (AC) motor business related to the material handling market. The closing of the transaction occurred in 2009 when the transfer of the machinery and inventory covered by the purchase agreement was completed. Losses of approximately $1,500 and $4,400 in 2011 and 2010, respectively, are reported in the Controls segment. Cumulative expense related to the sale is approximately $20,600. In 2008 and 2009 expense was recognized for employee retention costs and to write down the value of machinery, inventory, and an intangible asset. In 2011 and 2010 the Company recognized additional expense related to a write-down of the carrying value of a building. An additional write-down of inventory was recognized in 2010 as the inventory was held on consignment and the purchaser revised their estimates of future inventory purchases from the Company. As part of the sales agreement, the Company will receive a commission payment in 2010 through 2012 based on the level of AC motor sales made by the purchaser. The Company recognized commission income of approximately $1,200, $1,600, and $900 in 2012, 2011, and 2010, respectively, which is included in Other, net on the consolidated statements of operations.
In October 2012 the Company and Daikin Industries Ltd. (Daikin), the noncontrolling interest partner in the joint venture Sauer-Danfoss-Daikin, Ltd. (SDD) agreed that the stock owned by Daikin in the joint venture entity would be redeemed effective January 1, 2013. At that same time, the operations of SDD would be transferred to Daikin-Sauer-Danfoss Manufacturing, Ltd., a separate joint venture that is owned by the Company and Daikin. Effective January 1, 2013 SDD will become a holding company, holding the investment in the sales companies in the Asia-Pacific region, which is fully owned by the Company.
In July 2009 the Company and Topcon Positioning Systems, Inc. (Topcon), the noncontrolling interest partner, agreed to terminate the joint venture they have operated since April 2001 through TSD Integrated Controls, LLC (TSD). The termination was effective September 1, 2009 but is subject to a three-year wind down period as contemplated in the 2001 joint venture agreement. During the wind-down period, the Company and Topcon will each receive distributions of certain assets of TSD and royalties on sales of TSD products. The final collection of accounts receivable and distributions to the joint venture partners will be made in 2013. The effects of this wind-down will not have a material impact on the Company's operations.