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Significant Event
12 Months Ended
Sep. 28, 2012
Significant Event [Abstract]  
Significant Event

14SIGNIFICANT EVENT

On September 12, 2011, the Company announced a temporary closure of its Binghamton, New York manufacturing facility and administrative offices due to flooding from torrential rains.  The Binghamton manufacturing facility houses the Company’s consumer, commercial and military tent businesses.  The Company’s finished goods warehouse located nearby was unaffected by the flooding and the Company was able to resume shipments of products within a few days.  Production resumed on September 28, 2011.

 

The Company maintains insurance for both property damage and business interruption relating to catastrophic events.  Business interruption coverage covers lost profits and other costs incurred.  Non-refundable insurance recoveries received in excess of the net book value of damaged assets, clean up and post-event costs are recognized as income in the period received.

 

The Company has incurred costs related to the clean-up and repair of the facility and equipment, losses of inventory and fixed assets, rental of temporary office space for administrative and R&D personnel and payroll expenses for labor idled due to the flood totaling approximately $1,578 in 2012 and $1,868 in 2011In 2012 and 2011, the Company received  $2,000 and  $1,000, respectively, of insurance reimbursements associated with these costs and has recorded a receivable with its insurers of $636 as of September 28, 2012.  The Company recognized expense of $19 and $257 in 2012 and 2011, respectively, and in 2012 recorded a gain of $220 related to insurance recoveries under its business interruption coverage and a gain of $246 related to insurance proceeds received to replace fixed assets under the Company’s property loss coverage.  These amounts are included in Administrative management, finance and information systems expense in the Outdoor Equipment segment.

 

The Company is negotiating additional insurance recoveries under its business continuation and fixed asset replacement coverages.  The amount of these recoveries, if any, cannot be estimated at September 28, 2012.  Any additional recoveries will be recorded as income upon the resolution of gain contingencies.