Tecumseh Products 2012 Annual Report Download - page 51

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50
Changes in the carrying amount and accrued product warranty costs for the years ended December 31, 2012, 2011 and 2010 are
summarized as follows:
(in millions)
Balance at January 1, 2010........................................................................................................................ $ 5.1
Settlements of warranty claims (in cash or in kind)..................................................................................... (6.3)
Current year accruals for warranties ............................................................................................................ 6.8
Adjustments to preexisting warranties ......................................................................................................... 0.4
Effect of foreign currency translation .......................................................................................................... (0.1)
Balance at December 31, 2010................................................................................................................... $ 5.9
Settlements of warranty claims (in cash or in kind)..................................................................................... (5.6)
Current year accruals for warranties ............................................................................................................ 6.5
Effect of foreign currency translation .......................................................................................................... (0.3)
Balance at December 31, 2011................................................................................................................... $ 6.5
Settlements of warranty claims (in cash or in kind)..................................................................................... (6.3)
Current year accruals for warranties ............................................................................................................ 6.5
Effect of foreign currency translation .......................................................................................................... (0.1)
Balance at December 31, 2012................................................................................................................... $ 6.6
Warranty expense was $6.4 million, $6.2 million and $7.1 million for the years ended December 31, 2012, 2011 and 2010,
respectively. At December 31, 2012, $5.8 million was included in current liabilities and $0.8 million was included in non-
current liabilities. At December 31, 2011, $5.7 million was included in current liabilities and $0.8 million was included in non-
current liabilities.
NOTE 8. Debt
Our debt consists of the following at December 31,
(in millions) 2012 2011
Weighted Avg.
Int. Rate
Weighted Avg.
Int. Rate
Short-term debt obligations
Lines of credit ....................................................................... $ 40.0 $ 32.8
Revolving credit facility ....................................................... 10.0 10.2
Capital lease obligations ....................................................... 0.4 —
Other debt ............................................................................. 0.2 —
Current maturities of long-term debt........................................ 5.0 12.1
Total short-term debt obligations ...................................... $ 55.6 8.9% $ 55.1 8.4%
Long-term debt obligations
Lines of credit ....................................................................... $ 9.2 $ 16.9
Capital lease obligations ....................................................... 1.5 —
Other debt ............................................................................. 0.1 —
Less: Current maturities of long-term debt .............................. (5.0)(12.1)
Total long-term debt obligations ....................................... $ 5.8 5.2% $ 4.8 5.0%
On April 21, 2011, we entered into a Revolving Credit and Security Agreement with PNC Bank, National Association (“PNC”).
Subject to the terms and conditions of the agreement, PNC agreed to provide us with up to a $45.0 million revolving line of
credit, including up to $10.0 million in letters of credit, subject to a borrowing base formula, lender reserves and PNC’s
reasonable discretion, expiring on April 21, 2015 and bearing interest at either LIBOR or an alternative base rate, plus a margin
that varies with borrowing availability. The facility is guaranteed by Tecumseh Products Company and its U.S. and Canadian
subsidiaries and is secured by substantially all of the assets of the borrowers, with some exclusions. As of December 30, 2011,
we entered into Amendment 1 to the Revolving Credit and Security Agreement with PNC to amend certain non-financial
covenants.
The PNC agreement contains various covenants, including limitations on dividends, investments and additional indebtedness
and liens, and a minimum fixed charge coverage ratio, which would apply only if average undrawn borrowing availability, as