XML 29 R12.htm IDEA: XBRL DOCUMENT v2.4.1.9
Litigation
6 Months Ended
Dec. 31, 2014
Litigation [Abstract]  
Litigation

7.  LITIGATION

 

Indiana Civil Litigation – During the quarter ended December 31,  2013, the Company entered into an agreement to settle the Indiana Civil Litigation for $6.3 million. This amount is recorded as Litigation Settlement Costs in the Consolidated Statements of Income.

 

During the quarter ended December 31, 2014, the Company recorded $0.2 million of legal expenses that were incurred pursuing insurance coverage.  During the quarter ended December 31, 2013, the Company incurred legal defense costs of $0.8 million which was offset by reimbursements of $1.7 million from insurers.  During the six months ended December 31, 2014, the Company recorded $0.3 million of legal expenses. During the six month period ended December 31, 2013, the Company incurred legal defense costs of $1.7 million which was offset by reimbursements of $1.7 million from insurers.  These expenses are included in Selling, General and Administrative (SG&A) expense in the Consolidated Statements of Income.

 

The Company will continue to pursue the recovery of additional defense and settlement costs from insurance carriers. Based on policy language and jurisdiction, insurance coverage is in question.  The Iowa District Court dismissed litigation filed by the Company’s insurance carriers in Iowa after the Iowa Court of Appeals found that Indiana law applied to the insurance policies in question and the Iowa Supreme Court denied further review.  However, that dismissal has been appealed by the insurance carriers to the Iowa Supreme Court. Concurrently, coverage litigation is proceeding against the insurance carriers in Indiana.

 

Other Proceedings – From time to time, the Company is subject to various other legal proceedings, including lawsuits, which arise out of, and are incidental to, the conduct of the Company’s business. The Company does not consider any of such other proceedings that are currently pending, individually or in the aggregate, to be material to its business or likely to result in a material effect on its consolidated operating results, financial condition, or cash flows.