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EXCEL - IDEA: XBRL DOCUMENT - AEROFLEX HOLDING CORP.Financial_Report.xls
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EX-31.1 - EXHIBIT 31.1 - AEROFLEX HOLDING CORP.v331865_ex31-1.htm
EX-32.1 - EXHIBIT 32.1 - AEROFLEX HOLDING CORP.v331865_ex32-1.htm
EX-31.2 - EXHIBIT 31.2 - AEROFLEX HOLDING CORP.v331865_ex31-2.htm
EX-32.2 - EXHIBIT 32.2 - AEROFLEX HOLDING CORP.v331865_ex32-2.htm
10-Q - FORM 10-Q - AEROFLEX HOLDING CORP.v331865_10q.htm
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EX-31.3 - EXHIBIT 31.3 - AEROFLEX HOLDING CORP.v331865_ex31-3.htm
v2.4.0.6
Legal Matters
6 Months Ended
Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]  
Legal Matters and Contingencies [Text Block]
13. Legal Matters

 

We have identified instances of noncompliance with the International Traffic in Arms Regulations, or ITAR, in certain of our past business activities as well as in the pre-acquisition business activities of certain acquired companies. These include the inadvertent misclassification and/or export of products without the required license and the disclosure of controlled technology to certain foreign national employees. These matters were formally disclosed to the U.S. Department of State from time to time from fiscal 2007 through fiscal 2012 and several have been resolved without penalty. The Office of Defense Trade Controls Compliance has recently requested a meeting to discuss a proposed settlement to resolve those ITAR violations, disclosed voluntarily to the State Department in 2007 and 2008, concerning space related hardware items that were exported to end users in numerous foreign countries, including China, without the requisite State Department license or other authorization and to ensure that we currently are in full ITAR compliance. At this time, however, it is not possible to determine whether any fines or other penalties will be assessed against us or the materiality of the outcome of the ITAR matters yet to be finally resolved.

 

In March 2005, we sold the net assets of our shock and vibration control device manufacturing business, which we refer to as VMC. Under the terms of the sale agreements, we retained certain liabilities relating to adverse environmental conditions that existed at the premises occupied by VMC as of the date of sale. We recorded a liability for the estimated remediation costs related to adverse environmental conditions that existed at the VMC premises when it was sold. The accrued environmental liability at December 31, 2012 was $1.2 million, of which $352,000 is expected to be paid within one year.

 

We are also involved in various other claims and legal actions that arise in the ordinary course of business. We do not believe that the ultimate resolution of any of these actions will have a material adverse effect on our business, results of operations, financial position, liquidity or capital resources.