Commitments And Contingencies

9 Months Ended

Mar. 31, 2013

Commitments And Contingencies [Abstract]

Commitments And Contingencies

Note 10 – Commitments and Contingencies

We currently are party to various legal proceedings, including an action brought by a competitor in our Glassware and Candles segment alleging defamation of the competitor by us. The plaintiff’s complaint did not specify damages. The case is set for jury trial beginning May 20, 2013 in the U.S. District Court of South Carolina. We believe we have meritorious defenses in this matter and intend to defend ourselves vigorously. As of March 31, 2013, we have not recorded a loss contingency for this matter. While we believe that the ultimate outcome of this and various other proceedings we face, individually and in the aggregate, will not have a material adverse effect on our financial position or liquidity, litigation is always subject to inherent uncertainties, and unfavorable rulings could occur, which could have a material impact on net income for the period in which the ruling occurs and future periods.

The Continued Dumping and Subsidy Offset Act of 2000 (“CDSOA”) provides for the distribution of monies collected by U.S. Customs from anti-dumping cases to qualifying domestic producers. Our reported CDSOA receipts totaled approximately $0.3 million in the second quarter of 2013, as compared to approximately $2.7 million in the second quarter of 2012.

CDSOA remittances relate to certain candles being imported from the People’s Republic of China. CDSOA provisions for remittances apply only to duties collected on products imported prior to October 2007. Accordingly, we may receive some level of annual distributions for an undetermined period of years in the future as the monies collected that relate to entries filed prior to October 2007 are administratively finalized by U.S. Customs. Without further legislative action, we expect these distributions will eventually cease.

Cases have been brought in U.S. courts challenging certain aspects of CDSOA. In two separate cases, the U.S. Court of International Trade (“CIT”) ruled that the procedure for determining recipients eligible to receive CDSOA distributions is unconstitutional. The U.S. Court of Appeals for the Federal Circuit reversed both CIT decisions and the U.S. Supreme Court did not hear either case. This allowed the appellate court decisions to stand, but other legal challenges to CDSOA are still pending.

We are unable to determine, at this time, what the ultimate outcome of other litigation will be, and it is possible that further legal action, potential additional changes in the law and other factors could affect the amount of funds available for distribution, including funds relating to entries prior to October 2007. Accordingly, we cannot predict the amount of future distributions, if any, we may receive. Any change in CDSOA distributions could affect our earnings and cash flow.