UNAUTHORIZED TRANSACTIONS

In December 2009, the Company learned of significant unauthorized transactions, which totaled approximately $31,500,000 from fiscal 2005 through December 2009.

The unauthorized transaction related costs and recoveries, net line in the Condensed Consolidated Statements of Income is comprised of the legal and professional fees for legal defense costs as well as legal fees related to certain claims initiated against third parties (see Note 12). The insurance and other recoveries represent amounts received under the Company’s insurance and other settlements related to the unauthorized transactions. For the three and six months ended December 31, 2011 and 2010, these costs and recoveries were as follows:



	Three Months Ended						Six Months Ended
	December 31						December 31
	2011			2010			2011			2010
Legal fees	$	228,268		$	755,044		$	677,174		$	1,367,588
Professional fees	—			25,681			—			42,558
Total costs	228,268			780,725			677,174			1,410,146

Insurance and other recoveries	(697,787		)	(575,825		)	(1,197,107		)	(938,962		)

Unauthorized transaction related costs and (recoveries), net	$	(469,519	)	$	204,900		$	(519,933	)	$	471,184

See Note 12 below for additional information relating to the Company’s expectation of receiving additional proceeds from the sale of items that law enforcement seized relating to the unauthorized transactions.