Note 5 - Property And Equipment

9 Months Ended

Feb. 28, 2013

Property, Plant and Equipment Disclosure [Text Block]

5. PROPERTY AND EQUIPMENT

Property and equipment consists of the following (in thousands):

	February 28, 2013				May 31, 2012
Land	$	304		$	301
Buildings and improvements		2,448			2,304
Leasehold improvements		12,385			11,994
Capital work-in-progress		4,387			4,545
Furniture and fixtures		2,098			1,966
Machinery, equipment and instruments		71,037			55,271
		92,659			76,381
Less accumulated depreciation		(28,395	)		(11,719	)
Property and equipment, net	$	64,264		$	64,662

Depreciation expense was $5.3 million and $4.5 million in the quarters ended February 28, 2013 and February 29, 2012, respectively.  Depreciation expense was $15.4 million for the nine month period ended February 28, 2013 compared with $9.7 million in the Successor period from August 20, 2011 to February 29, 2012 and $3.4 million in the Predecessor period from June 1, 2011 to August 19, 2011.  Depreciation expense is primarily included in cost of sales in the consolidated statements of operations.

During the second quarter of fiscal 2013, the Company recognized a disposition loss of $1.2 million to reduce certain capital work-in-progress equipment associated with a high speed filling project to its estimated salvage value.  The project was determined to be no longer economically viable during the second quarter of fiscal 2013 and management therefore decided to retire or dispose of the equipment.

For the year ended May 31, 2012, certain amounts within property and equipment have been reclassified for presentation purposes.  There has been no change in total property and equipment or accumulated depreciation.