Tecumseh Products 2012 Annual Report Download - page 55

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54
2011
Operating net loss included $8.5 million of impairments, restructuring charges and other items in 2011. This included $8.0
million related to severance associated with a reduction in force at our Brazilian ($4.1 million), North American ($0.1 million),
French ($0.2 million), Indian ($0.1 million) and Corporate ($3.5 million) locations, an increase of $0.1 million for additional
estimated environmental costs associated with the remediation activities at our former Tecumseh, Michigan facility and an
impairment of asset for $0.4 million. On March 7, 2011, our President and Chief Executive Officer and our Board of Directors
mutually determined to separate our President and Chief Executive Officer’s employment with us after a transition period. The
$3.5 million severance associated with a reduction in force at our Corporate location includes $1.35 million relating to our
former President and Chief Executive Officer’s separation.
2010
Operating net loss included $50.3 million of impairments, restructuring charges and other items in 2010. This included a legal
settlement of $7.3 million, an environmental reserve increase of $1.2 million, a curtailment gain of $0.4 million, the $40.3
million of non-cash settlement charges and excise tax related to the reversion of our hourly pension plan, a $0.4 million
impairment of an investment, and severance payments associated with a reduction in force at our Brazilian ($0.7 million),
Indian ($0.1 million) and Corporate ($1.7 million) locations. In addition, a final settlement gain of $1.0 million, net of excise
tax, was received in February 2010 from our previous salaried pension plan that was terminated in 2008.
The following table reconciles cash activities for the years ended December 31, 2012 and 2011 for accrued impairments,
restructuring charges and other items:
(in millions) Severance Other Total
Balance at January 1, 2011............................................................................ $ 0.6 $ 2.4 $ 3.0
Accruals.................................................................................................. 8.0 0.1 8.1
Payments ................................................................................................ (8.5)(0.7)(9.2)
Balance at December 31, 2011...................................................................... $ 0.1 $ 1.8 $ 1.9
Accruals.................................................................................................. 3.8 0.6 4.4
Payments ................................................................................................ (3.8)(0.9)(4.7)
Balance at December 31, 2012...................................................................... $ 0.1 $ 1.5 $ 1.6
The accrued severance balance at December 31, 2012 includes $0.1 million of accrued severance payments to be made related
to our European reduction in force and is expected to be settled in 2013. The environmental reserve balance at December 31,
2012, included in other, represents the estimated costs associated with remediation activities at our former Tecumseh, Michigan
facility, and is expected to be paid over the next 18 to 24 months.
NOTE 12. Income Taxes
Consolidated income (loss) from continuing operations before taxes consists of the following:
(in millions) 2012 2011 2010
U.S. .......................................................................................................... $ 45.5 $ (22.4)$ (73.6)
Foreign..................................................................................................... (32.6)(49.8)(1.6)
$ 12.9 $ (72.2)$ (75.2)