Tecumseh Products 2014 Annual Report Download - page 9

7
Employees
On December 31, 2014, we employed approximately 5,200 full-time equivalent employees and an additional 1,000 temporary
employees and contractors worldwide, 91.5% of whom were employed in foreign locations. While none of our U.S. employees
were represented by labor unions, many of our foreign location personnel are represented by national trade unions. We believe
we generally have a good relationship with our employees.
Available Information
We provide public access to our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and
amendments to these reports filed with or furnished to the Securities and Exchange Commission (“SEC”) under the Securities
Exchange Act of 1934. These documents may be accessed free of charge through the Investor Relations section of our website
at the following address: http://www.tecumseh.com. These documents are provided as soon as reasonably practicable after filing
with, or furnishing to, the SEC. These documents may also be found at the SEC website at http://www.sec.gov.
ITEM 1A. RISK FACTORS
Set forth below and elsewhere in this Annual Report on Form 10-K are descriptions of material risks and uncertainties that
could cause our actual business results to differ materially from those described in any forward-looking statements contained in
this report. These risk factors should be considered in addition to our cautionary statements concerning forward-looking
statements in this report, including statements related to markets for our products and trends in our business, which involve a
number of risks and uncertainties. Our separate section in Item 7 below, “Cautionary Statements Relating To Forward-Looking
Statements,” should be considered in addition to the following statements.
We have a history of losses and might not maintain our current level of liquidity.
Our cash position has become increasingly important in light of constrained capital markets and the current economic
environment. Our cash position has not been generated from operations but instead by non-recurring divestitures, new
financing arrangements and pension plan reversions. However, we may not be able to maintain our current levels of liquidity.
We have incurred losses in seven of our last eight years, including 2014, and would have incurred a loss in 2012 if we had not
recognized a $45.0 million postretirement benefit curtailment gain due to the termination of certain postretirement benefits for
salaried employees and retirees. We believe we will continue to incur net losses for the next several years. Challenges remain
with respect to our ability to generate appropriate levels of liquidity solely from cash flows from operations, in particular due to
uncertainties related to future sales levels, global economic conditions, currency exchange effects and commodity pricing. We
may not be able to generate cash from operating activities unless further restructuring activities are implemented or sales or
economic conditions improve. Additional restructuring activities may be necessary and might include changing our current
footprint, consolidating facilities, otherwise reducing our manufacturing capacity, selling assets or reducing the number of our
employees. These actions could result in significant restructuring or asset impairment charges, severance costs, losses on asset
sales and use of cash. Accordingly, these restructuring activities could have a significant effect on our consolidated financial
position, operating profit, cash flows and future operating results. While we believe that current cash balances, available
borrowings under our existing credit facilities, proceeds from sales of assets and cash inflows related to non-income tax refunds
will produce adequate liquidity to implement our business strategy over at least the next twelve months, there is a risk that the
costs of any such restructuring and cash required will exceed the benefits received from such activities or that such benefits will
ultimately be inadequate if sales or economic conditions deteriorate. In addition, while our business dispositions in prior years
have improved our liquidity, many of the sale agreements provide for certain retained liabilities and indemnities, including
liabilities that relate to environmental issues and product warranties. Future events could result in the recognition of additional
liabilities that could consume available liquidity and management attention.