Tecumseh Products 2012 Annual Report Download - page 50

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49
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
(in millions)
Year
Projected Benefit
Payments from
Pension Plans
Projected Benefit Payments
From Postretirement Medical
And Life Insurance Plans
2013 ........................................................................................................ $ 10.5 $ 0.2
2014 ........................................................................................................ $ 10.7 $ —
2015 ........................................................................................................ $ 12.1 $ —
2016 ........................................................................................................ $ 11.4 $ —
2017 ........................................................................................................ $ 11.6 $ —
Aggregate for 2018-2022........................................................................ $ 63.4 $ —
Defined Contribution Plan
We have a defined contribution retirement plan that covers substantially all domestic employees. The expense for this plan was
$2.4 million, $2.5 million and $2.3 million in 2012, 2011 and 2010, respectively. Contributions were 100% funded from the
proceeds obtained from the reversion of our former Salaried pension plan.
NOTE 6. Recoverable Non-Income Taxes
We pay various value-added taxes in jurisdictions outside of the United States. These include taxes levied on material
purchases, fixed asset purchases and various social taxes. The majority of these taxes are creditable when goods are sold to
customers domestically or against income taxes due. Since the taxes are recoverable upon completion of these procedures, they
are recorded as assets upon payment of the taxes.
In Brazil, historically such taxes were credited against income taxes. However, with reduced profitability, we instead sought
these refunds via alternate proceedings. In India, we participate in a number of government sponsored tax incentive programs,
which result in refundable non-income taxes.
Following is a summary of the recoverable non-income taxes recorded on our balance sheet at December 31, 2012 and 2011:
December 31,
(in millions) 2012 2011
Brazil ............................................................................................................................ $ 32.5 $ 35.8
India.............................................................................................................................. 6.1 8.0
Europe .......................................................................................................................... 0.8 0.7
Mexico.......................................................................................................................... 0.1 —
Total recoverable non-income taxes............................................................................. $ 39.5 $ 44.5
At December 31, 2012, a receivable of $20.7 million was included in current assets and $18.8 million was included in non-
current assets and is expected to be recovered through 2014. The actual amounts received as expressed in U.S. dollars will vary
depending on the exchange rate at the time of receipt or future reporting date.
NOTE 7. Warranties
Reserves are recorded on the consolidated balance sheet to reflect our contractual liabilities relating to warranty commitments
to customers. Historically, estimates of warranty commitments have not differed materially from actual results; however,
unanticipated product quality issues could result in material changes to estimates in future periods.