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Note 12 - Commitments and Contingencies | 12 Months Ended
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Oct. 03, 2015
Notes to Financial Statements |
Commitments and Contingencies Disclosure [Text Block] | (12) Commitments and Contingencies Insurance recoveries. On January 21, 2014, a fire occurred at the Company’s Gallatin, Tennessee PC strand manufacturing facility, damaging a portion of the facility and requiring the temporary curtailment of operations until the necessary repairs were completed. The Company reassigned a portion of its production requirements to its PC strand facility located in Sanderson, Florida, which was operating at a reduced utilization level. During the first quarter of 2015, the Company completed the remainder of the repairs and the Gallatin facility was fully operational. The Company maintained general liability, business interruption and replacement cost property insurance coverage on its facilities that was sufficient to cover the losses incurred from the fire. The Company received $2.0 million and $6.7 million of insurance proceeds in 2015 and 2014, respectively, related to the expenses that were incurred and capital outlays that were required to replace property and equipment damaged in the fire. During 2015, the insurance proceeds attributable to the additional expenses incurred were recorded in cost of sales ($244,000) and SG&A expense ($69,000) on the consolidated statement of operations and comprehensive income. During 2014, the insurance proceeds attributable to the additional expenses were recorded in cost of sales ($3.9 million) and SG&A expense ($147,000) on the consolidated statement of operations. The insurance proceeds attributable to the property and equipment damaged in the fire were reported in cash flows from investing activities and all other insurance proceeds received were reported in cash flows from operating activities on the consolidated statement of cash flows. The Company reached a final settlement with its insurance carrier on this claim during the third quarter of 2015. Leases and purchase commitments. The Company leases a portion of its equipment and its facility in Houston, Texas under operating leases that expire at various dates through 2020. Under most lease agreements, the Company pays insurance, taxes and maintenance. Rental expense for operating leases was $1.8 million in 2015 and $1.2 million in 2014 and 2013. Minimum rental commitments under all non-cancelable leases with an initial term in excess of one year as of October 3, 2015 are payable as follows: 2016, $1.3 million; 2017, $941,000; 2018, $351,000; 2019, $74,000; 2020 and beyond, $50,000. As of October 3, 2015 , the Company had $39.4 million in non-cancelable purchase commitments for raw material extending as long as approximately 100 days and $1.2 million of contractual commitments for the purchase of certain equipment that had not been fulfilled and are not reflected in the consolidated financial statements. Customer dispute. During 2015, the Company settled a dispute with a customer resulting in a $0.7 million charge that was recorded in other expense on the consolidated statement of operations and comprehensive income. Legal proceedings . The Company is involved in lawsuits, claims, investigations and proceedings, including commercial, environmental and employment matters, which arise in the ordinary course of business. The Company does not expect that the ultimate cost to resolve these matters will have a material adverse effect on its financial position, results of operations or cash flows. Seve rance and change of control a greements. The Company has entered into severance agreements with its Chief Executive Officer and Chief Financial Officer that provide certain termination benefits to these executives in the event that an executive’s employment with the Company is terminated without cause. The initial term of each agreement is two years, and the agreements automatically renew for successive one year terms unless the Company or the executive provides notice of termination as specified in the agreement. Under the terms of these agreements, in the event of termination of the executive’s employment without cause, the executives would receive termination benefits equal to one and one-half times the executive’s annual base salary in effect on the termination date and the continuation of health and welfare benefits for eighteen months. In addition, all of the executive’s stock options and restricted stock would vest immediately, and outplacement services would be provided. The Company has also entered into change in control agreements with key members of management, including its executive officers, which specify the terms of separation in the event that termination of a covered executive’s employment followed a change in control of the Company. The initial term of each agreement is two years, and the agreements automatically renew for successive one year terms unless the Company or the executive provides notice of termination as specified in the agreement. The agreements do not provide assurances of continued employment, nor do they specify the terms of an executive’s termination should the termination occur in the absence of a change in control. The compensation payable under the terms of these agreements differs as between the Chief Executive Officer and Chief Financial Officer, on the one hand, and the other covered executives on the other hand. In the event of termination of the Chief Executive Officer or the Chief Financial Officer within two years of a change of control, the Chief Executive Officer and Chief Financial Officer (as applicable) would receive severance benefits equal to two times base compensation, two times the average bonus for the prior three years and the continuation of health and welfare benefits for two years. In the event of such a termination within two years of a change of control respecting the other key members of management, including the Company’s other two executive officers, such terminated executives would receive severance benefits equal to one times base compensation, one times the average bonus for the prior three years and the continuation of health and welfare benefits for one year. In addition, with respect to any covered executive that is terminated within two years of a change of control, all of the executive’s stock options and restricted stock would vest immediately, and outplacement services would be provided.

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