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Other Matters
9 Months Ended
Sep. 30, 2015
Other Matters Disclosure [Abstract]  
Other Matters

17. Other Matters

 

The Company is currently in a comment letter process with the Staff of the Securities and Exchange Commission relating to an ongoing periodic review of the Company's Form 10-K for the year ended December 31, 2014. The current correspondence relates to the accounting treatment for the formation of the Company's international joint ventures under U.S. Generally Accepted Accounting Principles and whether such joint ventures should potentially have been consolidated in the Company's historical results. The Company's Board of Directors also formed a Special Committee consisting of independent directors to review the accounting treatment related to certain of the Company's international joint venture and other transactions.  The Special Committee has completed its review as of the date of this Form 10-Q.  See Note 18 for further information on the result of the Special Committee’s review.

On August 5, 2015, Mr. Cole resigned as the Company’s Chairman of the Board, President, Chief Executive Officer and as a director of the Company effective immediately. Upon Mr. Cole’s resignation, Mr. F. Peter Cuneo, a member of the Company’s Board of Directors, was appointed the Company’s Chairman of the Board and Interim Chief Executive Officer.  Under the terms of a binding term sheet with Mr. Cole, the Company recognized a one-time pre-tax charge of approximately $4.6 million in the Current Quarter.  Under the terms of Mr. Cuneo’s agreement as Interim Chief Executive Officer, the Company recognized a one-time pre-tax charge of approximately $1.2 million in the Current Quarter.  

As a result of a comprehensive review of the Company’s license agreements and relationships with its licensees and based on current business conditions, the Company increased its provision for doubtful accounts and wrote off uncollectible accounts, which in the aggregate amounted to bad debt expense of approximately $12.2 million, which is included in the Company’s selling, general and administrative expenses for the Current Quarter.

During the Current Quarter and Current Nine Months, the Company included in its selling, general and administrative expenses approximately $4.1 million and $6.5 million, respectively, of charges for professional fees associated with the continuing correspondence with the Staff of the SEC, the Special Committee’s review, and severance costs related to the transition of the Company’s management (which excludes the $4.6 million noted above under the terms of a binding term sheet with Mr. Cole.)

During the Company’s preparation of its 2014 Federal tax return it was determined that an adjustment of approximately $3.8 million was necessary, which is included in the provision for income taxes for the Current Quarter.