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Legal Matters
3 Months Ended
Mar. 31, 2012
Legal Matters And Commitments and Contingencies [Abstract]  
Legal Matters

Note 18—Legal Matters

Lejaby Claims: On August 18, 2009, Palmers Textil AG (“Palmers”) filed an action against the Company in Le Tribunal de Commerce de Paris (The Paris Commercial Court), alleging that the Company made certain misrepresentations in the sale agreement, and seeking to declare the sale null and void, monetary damages in an unspecified amount and other relief (the “Palmers Suit”). On February 13, 2012, Le Tribunal de Commerce de Paris dismissed the Palmers Suit and awarded the Company €100 in costs. On March 12, 2012, Palmers appealed the judgment. In addition, the Company and Palmers have been unable to agree on certain post-closing adjustments to the purchase price, including adjustments for working capital. The dispute regarding the amount of post-closing adjustments is not a subject of the Palmers Suit. As of March 31, 2012, the Company had a reserve of approximately $4,000 in connection with these legal matters.

Lejaby Receivables: As of March 31, 2012, the Company had a loan receivable recorded in Other assets on the Company’s Consolidated Condensed Balance Sheets of $14,300 from Palmers related to the Company’s sale of its Lejaby business to Palmers on March 10, 2008. The Company also had a receivable of $4,000 recorded in Other assets on the Company’s Consolidated Condensed Balance Sheet as of March 31, 2012 related to working capital adjustments associated with such sale. During April 2012, the Company received certain information which indicates the potential that all or a portion of the receivables from Palmers might not be collectible. However, since the Company has not been able to verify the accuracy of the information received, the Company believes that it cannot reliably estimate a probable range of amounts that it may ultimately collect with respect to its receivables from Palmers. Accordingly, as of March 31, 2012, no provision has been recorded against the receivables from Palmers in the Company’s Consolidated Condensed Financial Statements.

 

Other: In addition, from time to time, the Company is involved in arbitrations or legal proceedings that arise in the ordinary course of its business. The Company cannot predict the timing or outcome of these claims and proceedings. Currently, the Company is not involved in any such arbitration and/or legal proceeding that it expects to have a material effect on its financial condition, results of operations or cash flows.