Commitments And Contingencies

9 Months Ended

Sep. 30, 2012

Commitments And Contingencies [Abstract]

Commitments And Contingencies

13.  Commitments and Contingencies

Liability Claims

The estimated unreported tissue processing and product loss liability and any related recoverable insurance amounts are as follows (in thousands): 

	September 30,		December 31,
	2012		2011
Short-term liability	$	952	$	1,030
Long-term liability		919		960
Total liability		1,871		1,990
Short-term recoverable		296		350
Long-term recoverable		360		350
Total recoverable		656		700
Total net unreported loss liability	$	1,215	$	1,290

Further analysis indicated that the liability as of September 30, 2012 could be estimated to be as high as $3.5 million, after including a reasonable margin for statistical fluctuations calculated based on actuarial simulation techniques.   

Employment Agreement

The Company has an employment agreement with its Chief Executive Officer (“CEO”) that confers benefits which become payable upon a change in control or upon certain termination events, such as voluntary retirement.  As of both September 30, 2012and December 31, 2011 the Company has recorded $2.1 million in accrued expenses and other current liabilities on the Summary Consolidated Balance Sheets representing benefits payable upon the CEO’s voluntary retirement, for which he is currently eligible.  The CEO’s employment agreement terminates on December 31, 2012.  A new agreement, which takes effect on January 1, 2013 and terminates on December 31, 2015, was signed in October 2012.  Payments to the CEO under the new agreement are not significantly different from those in the prior agreement.  However, the new agreement includes an additional $100,000 payment if the CEO remains employed by CryoLife on January 1, 2013.