2.2.0.7 false Commitments and Contingencies 10801 - Disclosure - Commitments and Contingencies 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 Commitments and Contingencies 3 us-gaap_CommitmentsAndContingenciesDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false false 1 false false false false 0 0 <div> Note 8—Commitments and Contingencies   Warranty Obligations   The Company's estimated obligations for warranty, which are included as part of Costs of Sales in the Condensed Consolidated Statements of Operations, are accrued concurrently with the revenue recognized. The Company makes provisions for its warranty obligations based upon historical costs incurred for such obligations adjusted, as necessary, for current conditions and factors. Due to the significant uncertainties and judgments involved in estimating the Company's warranty obligations, including changing product designs and specifications, the ultimate amount incurred for warranty costs could change in the near term from the current estimate. The Company believes that its warranty accrual as of July 31, 2010, which is included in the Other Accrued Liabilities line item in the Condensed Consolidated Balance Sheets, is sufficient to cover expected warranty costs.   The following table presents the fiscal year 2011 year-to-date activity for the Company's warranty obligations:   <table style="border-collapse: collapse; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0"> <tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 499.05pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="665"> Accrued warranty balance as of May 1, 2010 </td> <td style="padding-bottom: 0in; padding-left: 2.35pt; width: 45.65pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="61"> $    2,533</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 499.05pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="665"> Accruals for warranties of fiscal year 2011 sales </td> <td style="padding-bottom: 0in; padding-left: 2.35pt; width: 45.65pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="61">           767</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 499.05pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="665"> Warranty costs incurred in fiscal year 2011 </td> <td style="padding-bottom: 0in; padding-left: 2.35pt; width: 45.65pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="61">         (526)</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 499.05pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="665"> Accrued warranty balance as of July 31, 2010 </td> <td style="padding-bottom: 0in; padding-left: 2.35pt; width: 45.65pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="61"> $    2,774</td></tr></table>   Legal Proceedings   At any time, the Company may be involved in legal proceedings in addition to the Crucible matter described below. The Company's policy is to routinely assess the likelihood of any adverse judgments or outcomes related to legal matters, as well as ranges of probable losses. A determination of the amount of the reserves required, if any, for these contingencies is made after thoughtful analysis of each known issue and an analysis of historical experience. The Company records reserves related to legal matters for which it is probable that a loss has been incurred and the range of such loss can be estimated. With respect to other matters, management has concluded that a loss is only reasonably possible or remote and, therefore, no liability is recorded. Management discloses the facts regarding material matters assessed as reasonably possible and potential exposure, if determinable. Costs incurred defending claims are expensed as incurred.   In litigation arising out of a June 2002 incident at a Crucible Metals' ("Crucible") facility, the Company's excess insurance carrier notified the Company that it would contest its obligation to provide coverage for the property damage. The carrier settled the claims relating to this incident for a total of approximately $3.4 million. The Company intends to vigorously contest the carrier's claim; however, the ultimate outcome or likelihood of this specific claim cannot be determined at this time and an unfavorable outcome ranging from $0 to $3.4 million is reasonably possible.   Other Claims or Assessments    In fiscal year 2009, the Company was notified by the Purchaser of its Avure Business ("Purchaser"), which was reported as a discontinued operation for the year ended April 30, 2006, that the Swedish Tax Authority was conducting an audit which included periods during the time that the Company owned the subsidiary. Pursuant to an agreement with the purchaser, the Company had made commitments to indemnify various liabilities and claims, including any tax matters when it owned the business. The Swedish tax authority concluded its audit and issued a final report in November 2009 asserting that Avure owes 19.5 million Swedish Krona in additional taxes, penalties and fines. In April 2010, the Company filed an appeal to contest the findings by the Swedish Tax Authority. While the Company intends to continue contesting the findings, an equivalent of $1.2 million was accrued as of July 31, 2010 related to the periods during which it owned Avure. This amount was accounted for as an adjustment to the loss on the disposal of the Avure Business and is reported as a charge to discontinued operations in the Company's Condensed Consolidated Statements of Operations. The balance of the accrued liability will fluctuate period over period with changes in foreign currency rates until such time as the matter is ultimately resolved.   Other Legal Proceedings - For matters other than those described above, the Company does not believe that any of its other legal proceedings will have a material adverse effect on its consolidated financial position, results of operations or cash flows.   </div> Note 8—Commitments and Contingencies   Warranty Obligations   The Company's estimated obligations for warranty, which are included as part of false false false us-types:textBlockItemType textblock Includes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. 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