XML 23 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
Discontinued Operations
 12 Months Ended
Dec. 31, 2011
Discontinued Operations [Abstract]  
Discontinued Operations
(2) Discontinued Operations

On October 26, 2009, the Company sold all of the stock of its wholly owned subsidiary, Sypris Test & Measurement, Inc. for $39,000,000, of which $3,000,000 was deposited in an escrow account in connection with certain customary representations, warranties, covenants and indemnifications of the Company. During 2010, the Company was made aware of a potential indemnification claim from the purchaser of Sypris Test & Measurement. The Company estimates that its total liability arising from this claim will not exceed $946,000, of which $450,000 and $496,000 was recorded during the years ended December 31, 2011 and 2010, respectively. The Company has also incurred legal expenses of $78,000 during 2011 in connection with the claim. These charges are included in loss from discontinued operations, net of tax in the consolidated statement of operations. The Company has paid $196,000 related to the claim as of December 31, 2011. The remaining amount of $750,000 has been reserved in accrued liabilities on the Company's consolidated balance sheets. There can be no assurance that relevant facts and circumstances will not change, necessitating future changes to the estimated liability.