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Commitments and Contingencies
3 Months Ended
Sep. 30, 2012
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

(14) Commitments and Contingencies


 

The Company is subject to various lawsuits and other claims in the normal course of business. In addition, from time to time, the Company receives communications from government or regulatory agencies concerning investigations or allegations of

noncompliance with laws or regulations in jurisdictions in which the Company operates.

 


The Company establishes reserves for the estimated losses on specific contingent liabilities, for regulatory and legal actions where the Company deems a loss to be probable and the amount of the loss can be reasonably estimated. In other instances, the Company is not able to make a reasonable estimate of liability because of the uncertainties related to the outcome or the amount or range of potential loss.

 


On August 3, 2012, the Company terminated John Porter, the Company’s former Senior Vice President, Chief Financial Officer and Secretary. In a letter to the Company dated October 17, 2012, Mr. Porter demanded substantial monetary compensation totaling approximately $1.0 million from the Company as a result of his termination. The Company has not yet been served with a formal complaint. While the Company intends to vigorously defend any such actions by Mr. Porter, the Company recorded a liability at September 30, 2012 for its estimate of the probable loss in this matter.