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Note 10 - Valuation And Qualifying Accounts
 12 Months Ended
Dec. 31, 2011
VALUATION AND QUALIFYING ACCOUNTS  
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

10.              VALUATION AND QUALIFYING ACCOUNTS

 

Description

Balance at beginning of year

Net charge (credit) to income

Deduction

Currency translation adjustment

 

Balance at end of year

Year ended December 31, 2009:

 

 

 

 

 

Allowance for doubtful accounts

$ 9,644

$ (860)

$ (326)

$ 236

$ 8,694 

Inventory impairment

 

 

 

 

 

- Lower of cost or market

26,282

(24,268) 

42

1,158

3,214 

- Obsolescence

433

319 

(6)

35

781 

Allowance for deferred tax assets

6,683

(4,781) 

-

587

2,489

 

$ 43,042

$ (29,590)

$ (290)

$ 2,016 

$ 15,178

Year ended December 31, 2010:

 

 

 

 

 

Allowance for doubtful accounts

$ 8,694

$ (1,317)

$ (1,063)

$ 572 

$ 6,886 

Inventory impairment

 

 

 

 

 

- Lower of cost or market

3,214

(2,219)

-

201 

1,196 

- Obsolescence

781

245

-

93 

1,119 

Allowance for deferred tax assets

2,489

2,460

-

(132)

4,817

 

$ 15,178

$ (831)

$ (1,063)

$ 734 

$ 14,018 

Year ended December 31, 2011:

 

 

 

 

 

Allowance for doubtful accounts

$ 6,886

$ (1,555)

$ (664)

$ (53) 

$ 4,614 

Inventory impairment

 

 

 

 

 

- Lower of cost or market

1,196

1,725

(888)

(14) 

2,019 

- Obsolescence

1,119

268

-

(81) 

1,306 

- Charges related to flooding

-

3,572

- 

(130)

3,442 

Allowance for deferred tax assets

4,817

(3,942)

-

-  

875

 

$14,018

$ 68

$ (1,552)

$ (278) 

$ 12,256 

 

 

During 2009, the copper prices on London Metal Exchange (the “LME”) gradually rose from $3,220 in January 2009 to $6,981 in December 2009. The previous recognized impairment of $24,268 due to lower of cost or market was credited to cost of sales for those finished goods which were sold at above market in 2009.

 

During 2010, the Company exercised rigorous controls over raw-material inventory and through long-term copper future contacts reduced its exposure to the fluctuations in market prices for copper, which resulted in a significant reduction in the inventory impairment.

 

During 2011, the decrease in commodity prices, including that of copper, resulted in a write-down of the cost of the inventory as of December 31, 2011. Copper prices on the LME fell from an average monthly price high of $9,555 in January 2011 to $7,657 in December 2011. As a result, inventory write-down to market of $1,725 was charged to cost of sales for the year ended December 31, 2011.

 

The impairment charge of $3,572 was related to flooding in Thailand (note 14).