Note 10 - Loss on Lease Obligations

6 Months Ended

Jun. 29, 2013

Loss On Lease Obligations [Abstract]

Loss On Lease Obligations [Text Block]

Note 10 – Loss on Lease Obligations

In 2011, the Company completely vacated two of the five floors leased at the New York Office. GAAP requires that the fair value of the liability for costs that will continue to be incurred under an operating lease for its remaining term without economic benefit to the entity shall be recognized at the cease-use date based on the remaining lease rentals, adjusted for the effects of any prepaid or deferred items recognized under the lease, and reduced by estimated sublease rentals that could be reasonably obtained for the property, even if the entity does not intend to enter into a sublease. The Company recorded a loss on lease charge of $6.3 million during 2011, net of the release of deferred rent attributable to the vacant space. In the quarter ended June 29, 2013, the Company recorded an additional $0.5 million loss on lease charge related to the New York Office.

At June 29, 2013, approximately $2.0 million and approximately $4.5 million of deferred loss on lease obligations is included in Accrued expenses and other liabilities and Other long-term liabilities, respectively, of the unaudited condensed consolidated balance sheet. The Company has loss on lease obligations separate from the New York Office lease of approximately $0.4 million and approximately $0.6 million at June 29, 2013 and December 31, 2012, respectively.

A reconciliation of the beginning and ending liability balances for the total loss on lease obligations is shown in the tables below: 

	Three Months Ended
	June 29, 2013									June 30, 2012
(In thousands)	New York Office			Other			Total			New York Office			Other			Total
Beginning of period	$	5,915		$	433		$	6,348		$	7,585		$	722		$	8,307
Costs charged to expense		592			3			595			94			11			105
Costs paid or settled		(412	)		(58	)		(470	)		(388	)		(114	)		(502	)
End of period	$	6,095		$	378		$	6,473		$	7,291		$	619		$	7,910

	Six Months Ended
	June 29, 2013									June 30, 2012
(In thousands)	New York Office			Other			Total			New York Office			Other			Total
Beginning of period	$	6,234		$	488		$	6,722		$	7,871		$	826		$	8,697
Costs charged to expense		669			11			680			191			21			212
Costs paid or settled		(808	)		(121	)		(929	)		(771	)		(228	)		(999	)
End of period	$	6,095		$	378		$	6,473		$	7,291		$	619		$	7,910

The Company is actively seeking to sublease the New York Office and will vacate space if subleasing opportunities arise. Current market rates are below the rates in the Company’s lease, and subleasing the New York Office, in whole or in part, would likely result in a loss on lease charge material to the financial statements.