Litigation and Contingencies
|6 Months Ended|
Jun. 30, 2017
|Loss Contingency [Abstract]|
|Litigation and Contingencies||
Note 7. Litigation and Contingencies
The Company is involved in various legal proceedings, including product liability, general liability, workers’ compensation liability, and employment litigation, which have arisen in the normal course of operations. The Company is insured for product liability, general liability, workers’ compensation, employer’s liability, property damage and other insurable risk required by law or contract, with retained liability or deductibles. The Company has recorded and maintains an estimated liability in the amount of management’s estimate of the Company’s aggregate exposure for such retained liabilities and deductibles. For such retained liabilities and deductibles, the Company determines its exposure based on probable loss estimations, which requires such losses to be both probable and the amount or range of probable loss to be estimable. The Company believes it has made appropriate and adequate reserves and accruals for its current contingencies. On May 11, 2017 the Company obtained insurance coverage for product liability exposures, as well as for certain exposures related to general, workers’ compensation, automobile liability and catastrophic losses as well as those risks required to be insured by law or contract. The ASV workers’ compensation policies have a $0.25 million per claim deductible with a $1.0 million aggregate deductible. ASV also maintains an occurrence based product liability policy with a $0.5 million per claim self-insured retention.The product liability case Knezek v. Terex Corp, et. al., went to trial and on November 10, 2016, the jury awarded the plaintiff damages payable by the Company in the amount of $109. The verdict was subject to appeal and on January 12, 2017 a settlement agreement of $225 was reached, which was paid in full during the period ended March 31, 2017.
The product liability case Jones v. Terex Corp, et. al., an agreement of $1,600 was reached in March 2017. The Company agreed to pay $200 within 14 days of full execution of settlement agreement, followed thereafter by monthly payments in the amount of $82 per month for 17 months. Settlement for $53 was reached with co-plaintiff, Kerch, in June 2017.
The entire disclosure for legal proceedings, legal contingencies, litigation, regulatory and environmental matters and other contingencies.
Reference 1: http://www.xbrl.org/2003/role/presentationRef