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Commitments and Contingencies
12 Months Ended
Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

NOTE 17 — COMMITMENTS AND CONTINGENCIES

 

Leases

 

The Company conducts most of its operations from leased facilities under operating leases that expire at various dates from 2013 through 2017. The leases generally require the Company to pay all maintenance, insurance, property tax costs, and contain provisions for rent increases. Total rent expense, net of sublease income, was $0.7 million for 2012 and $0.9 million for 2011.

 

At the year end the future minimum rental payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year were as follows:

 

Year ending December 31,   Amount  
2013   $ 623  
2014     513  
2015     480  
2016     196  
2017     5  
Thereafter     -  
Total   $ 1,118  

 

The figures disclosed above include the commitment that existed at the year-end for the lease of a property used by the Company in the UK. Since the year end the Company has purchased this property which continues to be occupied by one of the UK subsidiaries. The Company previously held a lease to occupy this property that was due to expire in 2016. This purchase reduces the future rental annual expense for 2013 by $368,000, by $442,000 for each of 2014 and 2015 and by $184,000 for 2016.

 

Litigation

 

The Company is not currently a party to any material legal proceedings. However, the Company and its subsidiaries are, from time to time, involved in legal proceedings, claims and litigation arising in the ordinary course of business. While the amounts claimed may be substantial, the ultimate liability cannot presently be determined because of considerable uncertainties that exist. Therefore, it is possible the outcome of such legal proceedings, claims and litigation could have a material effect on quarterly or annual operating results or cash flows when resolved in a future period. However, based on facts currently available, management believes such matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.