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Other Liabilities - Annuity Accrual Release
12 Months Ended
Dec. 31, 2014
Payables and Accruals [Abstract]  
Other Liabilities - Annuity Accrual Release

NOTE 8 - OTHER LIABILITIES- ANNUITY ACCRUAL RELEASE

 

An agreement with a retired, former owner of a company that was subsequently purchased by the Company, obliged the Company to pay an inflation-linked monthly annuity to this former owner, for the duration of his life. The liability was calculated based on actuarial data relating to life expectancy, discounted by the Company’s weighted average cost of capital. As of December 31, 2013, the Company had accrued a liability of $697,000 which was included in Other Liabilities on the Company’s balance sheet. During September 2014, the individual passed away and the Company was relieved of its obligation. The release of this obligation totaling $704,000 was included in selling, general and administrative expenses, and separately identified, on the Consolidated Statement of Comprehensive Income/(Loss).