Property, Plant, and Equipment, net

9 Months Ended

Jun. 30, 2012

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment, net [Text Block]

Property, Plant, and Equipment, net

The components of property, plant, and equipment, net consisted of the following:



(in thousands)	As of		As of
	June 30, 2012		September 30, 2011
Land	$	1,502	$	1,502
Building and improvements	19,463		19,904
Equipment	12,443		12,656
Furniture and fixtures	190		51
Computer hardware and software	1,050		1,041
Leasehold improvements	3,820		4,631
Construction in progress	8,455		7,001
Property, plant, and equipment, net	$	46,923	$	46,786

During the nine months ended June 30, 2012, we recorded flood-related losses associated with damaged equipment of approximately $1.8 million. In addition, equipment under capital lease totaling $1.9 million as of September 30, 2011 was also damaged by the Thailand flood and was written off against our outstanding capital lease obligation. We have entered into agreements with our contract manufacturer in Thailand whereby our contract manufacturer agreed to purchase equipment to rebuild certain manufacturing lines damaged by flood waters and we agreed to reimburse our contract manufacturer for the cost of the equipment out of insurance proceeds that we expect to receive. During the three months ended June 30, 2012, we capitalized the cost of our new manufacturing lines of approximately $3.7 million and recorded an equipment capital lease obligation of $2.9 million, net of equipment deposits. See Note 9 - Flood-related Losses for additional disclosures related to the impact of the Thailand flood on our operations.

In May 2012, we sold approximately $0.9 million of equipment, net of accumulated amortization, to SEI pursuant to a Master Purchase Agreement signed in March 2012. See Note 1 - Basis of Presentation for additional disclosures related to this asset sale.

As of June 30, 2012 and September 30, 2011, accumulated depreciation was approximately $75.1 million and $105.5 million, respectively. The reduction in accumulated depreciation was primarily due to sale of equipment to SEI and the write-off of damaged equipment due to the Thailand flood.

See Note 7 - Intangible Assets for disclosures related to recent long-lived asset impairment tests.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details