2.2.0.7 false Termination of OMAX Merger Agreement 10601 - Disclosure - Termination of OMAX Merger Agreement true false false false 1 USD false false Unit1 Standard http://www.xbrl.org/2003/instance shares xbrli 0 Unit12 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Unit13 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 $ 5 Termination of OMAX Merger Agreement 3 flow_TerminationOfAcquisitionAgreementTextBlock flow false na duration Termination of Acquisition Agreement [Text Block] false false false false false false false false false false false terselabel false 1 false false false false 0 0 <div> <div> Note 6—Termination of OMAX Merger Agreement   In March 2009, the Company simultaneously entered into the following two agreements with OMAX Corporation:   (1) A Settlement and Cross License Agreement (the "Agreement") where both parties agreed to dismiss the litigation pending between them and release all claims made up to the date of the execution of the Agreement. The Company agreed to pay $29 million to OMAX in relation to this agreement which was funded as follows:   •     A non-refundable cash payment of $8 million to OMAX in March 2009 as part of the execution of the Agreement;   •     A cash payment of $6 million in March 2009 paid directly to an existing escrow account with OMAX, increasing the escrow amount from $9 million to a total of $15 million as part of the execution of the Agreement; and   •     In the event the merger would have been consummated by August 15, 2009, the entire amount would have been applied towards the $75 million purchase price. However, in the event the merger would not have been consummated by August 15, 2009, the $15 million held in escrow was to be released to OMAX on August 16, 2009 and the Company was to issue a promissory note in the principal amount of $6 million to OMAX for the remaining balance on the $29 million settlement amount.   (2) An amendment to the existing Merger Agreement which provided for the following:   •     A non-refundable cash payment of $2 million to OMAX for the extension of the closing of the merger from March 31, 2009 to August 15, 2009 — with closing at the option of the Company; and   •     In the event the merger would have been consummated by August 15, 2009, the $2 million would be applied towards the $75 million purchase price. However, in the event the merger would not have been consummated by August 15, 2009 the $2 million was to be forfeited and the Company was to issue a promissory note in the principal amount of $4 million to OMAX.   The Company recorded a $29 million provision related to the settlement of this patent litigation, pursuant to the terms of the Settlement and Cross Licensing Agreement, in fiscal year 2009.   In fiscal year 2010, the Company terminated its option to acquire OMAX following a thorough investigation of financing alternatives to complete the merger and unsuccessful attempts to negotiate a lower purchase price with OMAX. Pursuant to the terms of the amended Merger Agreement and the Settlement and Cross Licensing Agreement, the $15 million held in escrow was released to OMAX. The Company recorded a $6 million charge pursuant to the provisions of the amended Merger Agreement in the first quarter of fiscal year 2010, net of a $2.8 million discount as the two subordinated notes issued to OMAX were at a stated interest rate of 2%, which is below the Company's incremental borrowing rate. This discount is being amortized as interest expense through the maturity of the subordinated notes in August 2013. The carrying value of the subordinated notes issued to OMAX was $8.1 million as of July 31, 2010.</div> </div> Note 6—Termination of OMAX Merger Agreement   In March 2009, the Company simultaneously entered into the following two agreements with OMAX false false false us-types:textBlockItemType textblock Termination of Acquisition Agreement [Text Block] No authoritative reference available. false 1 1 false UnKnown UnKnown UnKnown false true