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Commitments and Contingencies
 3 Months Ended
Mar. 31, 2013
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]

(9) Commitments and Contingencies

 

In the ordinary course of business, the Company is involved in various legal proceedings, workers’ compensation and product liability disputes. The Company is of the opinion that the ultimate resolution of these matters will not have a material adverse affect on the results of operations, cash flows or the financial position of the Company.

 

As a result of environmental studies performed at the Company’s former facility located in Sarasota, Florida, the Company became aware of soil and groundwater contamination at the Company site. The Company engaged an environmental engineering consultant to assess the level of contamination and to develop a remediation and monitoring plan for the site. Soil remediation at the site was completed during the year ended December 31, 2010. Groundwater remediation at the site is expected to begin during the third quarter of 2013, upon state regulatory approval of a remedial action plan. During the three months ended March 31, 2013 and 2012, environmental remediation costs incurred were immaterial. At March 31, 2013 and December 31, 2012, the Company had accrued an undiscounted liability of $1,340 related to future remediation. At March 31, 2013 and December 31, 2012, $733 was recorded as a component of accrued expenses and other current liabilities on the condensed consolidated balance sheets while the remaining amounts were recorded as a component of other long-term liabilities. A majority of the costs associated with the recorded liability will be incurred at the start of the groundwater remediation, with the balance relating to monitoring costs to be incurred over multiple years. The recorded liability is based on assumptions of the proposed remedial action plan. In December 2011, the Company sold the Sarasota facility and related property. However, the liability to remediate the site contamination remains the responsibility of the Company. Due to the ongoing site remediation, the closing terms of the sale agreement included a requirement for the Company to maintain a $2,000 letter of credit for the benefit of the buyer.

 

In addition, the Company’s consolidated subsidiary, PST, has civil, labor and tax contingencies for which the likelihood of loss is deemed to be reasonably possible, but not probable, by its legal advisors, and, therefore, no accrual was recorded. Such contingencies amount to $12,292 and $11,925 at March 31, 2013 and December 31, 2012.

 

Product Warranty and Recall

 

Amounts accrued for product warranty and recall claims are established based on the Company’s best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet dates. These accruals are based on several factors including past experience, production changes, industry developments and various other considerations. The Company can provide no assurances that it will not experience material claims in the future or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued or beyond what the Company may recover from its suppliers. The current portion of the product warranty and recall reserve is included as a component of accrued expenses and other current liabilities on the condensed consolidated balance sheets. Product warranty and recall includes $193 and $494 of a long-term liability at March 31, 2013 and December 31, 2012, respectively, which is included as a component of other long-term liabilities on the condensed consolidated balance sheets.

 

The following provides a reconciliation of changes in product warranty and recall liability:

 

Three months ended March 31   2013     2012  
             
Product warranty and recall at beginning of period   $ 6,107     $ 5,301  
Accruals for products shipped during period     1,079       856  
Aggregate changes in pre-existing liabilities due to claim developments     529       295  
Settlements made during the period (in cash or in kind)     (1,498 )     (1,030 )
Product warranty and recall at end of period   $ 6,217     $ 5,422