Tecumseh Products 2014 Annual Report Download - page 70

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In cooperation with the Wisconsin Department of Natural Resources (“WDNR”), we also conducted an investigation of soil
and groundwater contamination at our Grafton, Wisconsin plant. In February 2013, the WDNR granted a "no further action" for
the on-site groundwater component of the investigation but required the installation of three additional off-site, down-gradient
monitoring wells and two years (six sampling events) of off-site monitoring. The timetable for monitoring began with the
sampling event conducted in October 2012, with the objective of demonstrating that concentrations are stable and receiving full
closure from the WDNR in 2014. The three additional off-site, down-gradient monitoring wells were installed and all on-site
monitoring wells were formally abandoned during the second quarter of 2013. Groundwater results from the off-site monitoring
indicated the possibility of vapor intrusion in nearby residences. Under an agreement with the WDNR, we initiated sampling
of vapor intrusion beginning with residences nearest the off-site monitoring wells. Based on the results of fifteen properties to
date, we have installed vapor mitigation systems in four residences and the vapor intrusion investigation was deemed complete
by the WDNR. The WDNR subsequently required an additional off-site groundwater investigation. A work plan to investigate
the extent of the contamination was approved by the WDNR in June 2014. Four new monitoring wells were installed and
sampled in the third quarter of 2014. The sampling results of these wells indicated that additional investigation was needed and
will be performed, as approved by the WDNR, during the first and second quarters of 2015. The additional off-site groundwater
investigation has led to the additional vapor intrusion investigation of nine additional offsite properties that may be completed
during the first quarter of 2015. Based upon the work related to vapor intrusion and the future additional off-site groundwater
investigation, the accrual was adjusted by $0.2 million during 2014.
In addition to the above-mentioned sites, we are also currently participating with the USEPA and various state agencies at
certain other sites to determine the nature and extent of any remedial action that may be necessary with regard to such other
sites. As these matters continue toward final resolution, amounts in excess of those already provided may be necessary to
discharge us from our obligations for these sites. Such amounts, depending on their amount and timing, could be material to
reported net income in the particular quarter or period that they are recorded. In addition, the ultimate resolution of these
matters, either individually or in the aggregate, could be material to the consolidated financial statements.
NOTE 17. Business Segments
Operating segments are defined as components of an enterprise for which separate financial information is available that is
evaluated regularly by the chief operating decision maker(s) in deciding how to allocate resources and in assessing
performance. The accounting policies of the reportable segments are the same as those described in Note 1, “Accounting
Policies”.
External customer sales by geographic area are based upon the destination of products sold. In 2014 and 2013 one household
refrigeration and freezer customer accounted for 6.3% and 8.3% of our consolidated sales, respectively. Long-lived assets by
geographic area are based upon the physical location of the assets.
Business Segment Information
Assets, capital expenditures and depreciation and amortization from continuing operations for the years ended December 31,
were as follows:
(in millions) 2014 2013 2012
Assets:
Compressor products $ 263.5 $ 356.0 $ 392.3
Corporate and consolidating items 131.0 129.0 133.5
Assets held for sale 1.8 2.4 2.1
Total assets $ 396.3 $ 487.4 $ 527.9
Capital expenditures:
Compressor products $ 11.4 $ 10.3 $ 11.9
Corporate and consolidating items 2.2 1.5 1.9
Total capital expenditures $ 13.6 $ 11.8 $ 13.8
Depreciation and amortization:
Compressor products $ 24.1 $ 27.3 $ 29.0
Corporate and consolidating items 0.9 6.2 7.4
Total depreciation and amortization $ 25.0 $ 33.5 $ 36.4