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Commitments and Contingencies
12 Months Ended
Jan. 03, 2014
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
Note 12 — Commitments and Contingencies
 
Lease Obligations and Firm Commitment
 
The Company leases certain property, plant and equipment under capital and operating lease agreements. These leases vary in duration and contain renewal options and/or escalation clauses.  Current and long-term obligations under capital leases are included in the Company’s consolidated balance sheets.
 
Estimated future minimum lease payments under leases having initial or remaining non-cancelable lease terms in excess of one year as of January 3, 2014 were as follows (in thousands):
 
Fiscal Year
 
Operating
Leases
 
Capital
Leases
 
2014
 
$
2,058
 
$
303
 
2015
 
 
1,817
 
 
142
 
2016
 
 
1,715
 
 
6
 
2017
 
 
1,731
 
 
 
2018
 
 
257
 
 
 
Thereafter
 
 
429
 
 
 
Total minimum lease payments
 
$
8,007
 
$
451
 
Less amounts representing interest
 
 
 
 
22
 
 
 
$
8,007
 
$
429
 
 
Rent expense was approximately $1.5 million, $1.9 million, and $1.8 million, for the years ended January 3, 2014, December 28, 2012, and December 30, 2011, respectively.
 
The Company had the following assets under capital lease at January 3, 2014 and December 28, 2012 (in thousands):
 
 
 
2013
 
2012
 
Machinery and equipment
 
$
3,922
 
$
3,923
 
Furniture and fixtures
 
 
611
 
 
946
 
Leasehold improvements
 
 
155
 
 
155
 
 
 
 
4,688
 
 
5,024
 
Less accumulated depreciation
 
 
3,984
 
 
3,576
 
 
 
$
704
 
$
1,448
 
   
Depreciation expense for assets under capital lease for each of the years ended January 3, 2014, December 28, 2012, and December 30, 2011, was approximately $566,000, $522,000, and $615,000, respectively.
 
As of January 3, 2014, the Company has a firm commitment of $800,000 which it is obligated to fulfill in the following twenty-four month period solely to be used for the acquisition of property and equipment.  Once fulfilled, the property and equipment acquired under the firm commitment will be treated as assets acquired under a capital lease. The Company also has a minimum purchase commitment of $1,064,000 with a supplier for purchase of certain finished goods inventory. 
 
Indemnification Agreements
 
The Company has entered into indemnification agreements with its directors and officers that may require the Company: (a) to indemnify them against liabilities that may arise by reason of their status or service as directors or officers, except as prohibited by applicable law; (b) to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified; and (c) to make a good faith determination whether or not it is practicable for the Company to obtain directors’ and officers’ insurance. The Company currently has directors’ and officers’ liability insurance through a third party carrier.
 
Tax Filings
 
The Company’s tax filings are subject to audit by taxing authorities in jurisdictions where it conducts business. These audits may result in assessments of additional taxes that are subsequently resolved with the authorities or potentially through the courts. Management believes the Company has adequately provided for any ultimate amounts that are likely to result from these audits; however, final assessments, if any, could be significantly different than the amounts recorded in the consolidated financial statements.
 
Employment Agreements
 
The Company’s Chief Executive Officer and certain other officers have as provisions of their employment agreements certain rights, including continuance of cash compensation and benefits, upon a “change in control,” which may include an acquisition of substantially all of its assets, or termination “without cause or for good reason” as defined in the employment agreements.
 
Litigation and Claims
 
From time to time the Company is subject to various claims and legal proceedings arising out of the normal course of our business. These claims and legal proceedings may relate to contractual rights and obligations, employment matters, and claims of product liability. STAAR maintains insurance coverage for product liability claims but may not be insured against other potentially material claims. Reserves are recorded for losses management determines are probable and reasonably estimable. While the Company is not aware of any claims likely to have a material adverse effect on its financial condition or results of operations, new claims or unexpected results of existing claims could lead to significant financial harm.