Ingram Industries, Inc. & Subsidiaries - Page 26




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               From respondent’s perspective, the engines wear out every 3            
          or 4 years and must be completely overhauled.  From petitioners’            
          perspective, the towboat and its engines, if properly maintained,           
          have an expected useful life of 40 years.  Petitioners, however,            
          perform the procedures every 3 to 4 years.  So it could be argued           
          that each time the procedure is performed it extends an engine’s            
          life 3 to 4 years and permits the engine to achieve its 40-year             
          life expectancy.  It cannot be said, however, that the procedures           
          performed are the equivalent of rebuilding or overhauling an                
          engine, either in terms of time consumed, the extent of the                 
          procedures, the amount of parts replaced, or cost of the work               
          performed.  Accordingly, it could also be argued that the                   
          engine’s life is 40 years, and it must be maintained at 3- to 4-            
          year intervals.                                                             
               Petitioners make a distinction between a disabled engine               
          that must be replaced and/or overhauled and petitioners’                    
          procedures which, for the most part, involve replacement or                 
          repair only of items that show wear.  Petitioners’ approach is              
          more in the nature of preventative maintenance, and they                    
          automatically replace only a limited number of items, such as               
          pistons.  The majority of the engine parts are inspected and                
          cleaned and only replaced or repaired if necessary.  Respondent             
          emphasizes that petitioners inspect more than 90 percent of the             
          parts, which, in respondent’s view, is tantamount to performing             






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Last modified: May 25, 2011