XML 150 R20.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACCRUED SEVERANCE AND SEVERANCE ASSETS
 12 Months Ended
Dec. 31, 2012
ACCRUED SEVERANCE AND SEVERANCE ASSETS [Abstract]  
Pension and Other Postretirement Benefits Disclosure [Text Block]
ACCRUED SEVERANCE, SEVERANCE ASSETS AND RETIREMENT PLANS


(a)
Accrued Severance and Severance Assets

(i) Israeli labor law and certain employee contracts generally require payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances.  The Company has recorded under liability for employee termination benefits the amount that would be paid if all its Israeli employees were dismissed at the balance sheet date, on an undiscounted basis, in accordance with Israeli labor law.  This liability is computed based upon the employee’s number of years of service and salary components, which in the opinion of management create entitlement to severance pay in accordance with labor agreements in force. The liability is reflected on the Company’s Consolidated Balance Sheets as accrued severance.
 
The liability is partially funded by sums deposited in dedicated funds in respect of employee termination benefits and is reflected on the Company’s Consolidated Balance Sheets as severance assets.  For certain Israeli employees, the Company’s liability is covered mainly by regular contributions to defined contribution plans.  These funded amounts are not reflected in the balance sheets, since they are not under the control and management of the Company.
 
(ii) Severance pay contributions to dedicated funds amounted to $285, $322 and $347 for the years ended December 31, 2010, 2011 and 2012, respectively.
 
(iii) The Company expects to contribute approximately $380 in respect of its severance pay obligations in the year ending December 31, 2013.
 
(iv) The Company does not expect to pay any future benefits to its employees upon their normal retirement age during 2013 and expects to pay $1,777 during the years 2014 to 2022 of which $1,498 is expected to be paid during 2014 and 2015. The liability for future benefits has not been reduced to reflect any amounts already deposited in dedicated funds with respect to those employees which at December 31, 2012 was $1,097, nor does it include future deposits.  These amounts do not include amounts that might be paid to employees that will cease working with the Company before their normal retirement age. The liability as at December 31, 2012 for future benefit payments in the next ten years is included under liability for employee termination benefits. The amounts due were determined based on the employees’ current salary rates and the number of service years that will be accumulated upon their retirement date.


(b)
Defined Contribution Plans

In the year ended December 31, 2012, the Company began participating in a defined contribution pension plan for its U.S. salaried employees meeting age and service requirements, which allows participants to make contributions by salary reduction pursuant to Section 401(k) of the Internal Revenue Code. Effective January 1, 2013, the Company contributes 3% of employees' salaries for those meeting the age and service requirements. In 2012, the Company's OmniMetrix subsidiary made such contributions while in 2013, the Company and all of the Company's U.S. entities will make contributions to their respective plans. The expense related to the employer portion for the year ending December 31, 2012 was $27.

The Company's GridSense subsidiary in Australia administers a statutory retirement benefit plan. The Company is required to contribute a minimum of 9% of an employee's base salary into a registered superannuation fund. Company contributions were approximately $87, $146 and $148 for the years ended December 31, 2010, 2011 and 2012, respectively.