XML 73 R22.htm IDEA: XBRL DOCUMENT v2.4.0.8
Litigation
12 Months Ended
Oct. 03, 2014
Litigation [Abstract]  
Litigation

 

13LITIGATION

The Company is subject to various legal actions and proceedings in the normal course of business, including those related to commercial disputes, product liability, intellectual property and environmental matters. The Company is insured against loss for certain of these matters. Although litigation is subject to many uncertainties and the ultimate exposure with respect to these matters cannot be ascertained, management does not believe the final outcome of any pending litigation will have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company.

 

In  2012, the Company received a $3,500 settlement payment resolving an ongoing claim with its insurance carriers, which was recognized in the Company’s Watercraft segment.  As part of the settlement, the Company’s former lawsuit filed in the U.S. District for the Eastern District of Wisconsin against its insurers was dismissed.  The Company originally initiated legal proceedings in May 2005 to seek coverage from its insurers related to an intellectual property dispute between the Company and one of its competitors, which was later settled.

 

The Company considers the defense of its intellectual property assets to be an ordinary and necessary operating activity essential to maintaining its competitive advantages.  Such activities are not of a financing nature and are not unusual or infrequent.  As a result, and in accordance with the presentation guidance in the Income Statement Subtopics in ASC 225, the Company recognized all of the litigation costs incurred and the payment of the settlement in relation to this matter as a component of operating expenses.  Accordingly, the insurance recovery related to these costs was also recognized in operations as a matter of consistency.