Axsys Technologies (AXYS)

Facilities

        During 2008, we entered into a seven year operating lease for a new 68,000 square foot manufacturing building in Nashua, New Hampshire. This facility serves as a manufacturing facility for our Surveillance Systems business and is a complement to the existing 78,000 square foot facility currently serving our Imaging Systems business in Nashua, New Hampshire. During 2007, we sold our buildings located in Nashua, New Hampshire for $6.4 million and Cullman, Alabama for $3.7 million. Concurrent with the sales, we entered into 15-year operating leases. Each lease is renewable at our option for an additional five years. As part of the sales leaseback, we have no continuing involvement aside from the lease agreement. The $1.4 million difference between the sales proceeds received (net of $0.5 million closing costs) and the book value of assets sold was deferred and is being amortized over the life of the initial lease terms.

Facilities

        During 2008, we entered into a seven year operating lease for a new 68,000 square foot manufacturing building in Nashua, New Hampshire.
This facility serves as a manufacturing facility for our Surveillance Systems business and is a complement to the existing 78,000 square foot facility currently serving our Imaging Systems business in
Nashua, New Hampshire. During 2007, we sold our buildings located in Nashua, New Hampshire for $6.4 million and Cullman, Alabama for $3.7 million. Concurrent with the sales, we entered
into 15-year operating leases. Each lease is renewable at our option for an additional five years. As part of the sales leaseback, we have no continuing involvement aside from the lease
agreement. The $1.4 million difference between the sales proceeds received (net of $0.5 million closing costs) and the book value of assets sold was deferred and is being amortized over
the life of the initial lease terms.

Facilities

        During 2007, we sold our buildings located in Nashua, New Hampshire for $6.4 million and Cullman, Alabama for $3.7 million. Concurrent with the sales, we entered into 15-year operating leases. Each lease is renewable at our option for an additional five years. As part of the sale and leaseback, we have no continuing involvement aside from the lease agreement. The $1.4 million difference between the sales proceeds received (net of $511 thousand closing costs) and the book value of assets sold was deferred and is being amortized over the life of the initial lease terms.

        On April 26, 2006, we purchased a 78,000 square foot building and 10.5 acres of land in Nashua, New Hampshire for $4.0 million. This facility serves as a consolidated manufacturing facility that supports both of our reporting segments. The relocation and the closure of the two existing facilities was completed in the fourth quarter of 2006. During 2006, total pre-tax costs associated with the relocation and facilities' closures were approximately $0.3 million, with an additional $2.5 million of capital expenditures. These costs included equipment relocation, employee training and facility improvements. In addition, we recognized a $0.1 million in expense for the cancellation of the existing Salem facility lease.

Facilities

        During 2007, we sold our buildings located in Nashua, New Hampshire for $6.4 million and Cullman, Alabama for $3.7 million. Concurrent with the
sales, we entered into 15-year operating leases. Each lease is renewable at our option for an additional five years. As part of the sale and leaseback, we have no continuing involvement
aside from the lease agreement. The $1.4 million difference between the sales proceeds received (net of $511 thousand closing costs) and the book value of assets sold was deferred and is
being amortized over the life of the initial lease terms.

        On
April 26, 2006, we purchased a 78,000 square foot building and 10.5 acres of land in Nashua, New Hampshire for $4.0 million. This facility serves as a consolidated
manufacturing facility that supports both of our reporting segments. The relocation and the closure of the two existing facilities was completed in the fourth quarter of 2006. During 2006, total
pre-tax costs associated with the relocation and facilities' closures were approximately $0.3 million, with an additional $2.5 million of capital expenditures. These costs
included equipment relocation, employee training and facility improvements. In addition, we recognized a $0.1 million in expense for the cancellation of the existing Salem facility lease.

Facilities

        During the second quarter of 2007, we sold our buildings and land located in Nashua, New Hampshire and Cullman, Alabama and concurrently entered into 15-year operating leases with the buyer. We received $9.6 million in proceeds for the sale of the two buildings. The $1.4 million difference between the sales proceeds received (net of $511 thousand of closing costs) and the book value of assets sold was deferred and is being amortized over the life of the leases.

Facilities

During the second quarter of 2007, we sold our buildings and land located in Nashua, New Hampshire and Cullman, Alabama and concurrently entered into 15-year operating leases with the buyer.  We received $9.6 million in proceeds for the sale of the two buildings. The $1,414 difference between the sales proceeds received (net of $511 closing costs) and the book value of assets sold was deferred and is being amortized over the life of the leases.

Note 9 — Facilities

On March 15, 2007, we entered into agreements of sale with The Hampshire Generational Fund LLC to sell our 78,000 square feet building located in Nashua, New Hampshire for $6,405 and our 120,000 square feet building located in Cullman, Alabama for $3,695. In connection with these sale agreements, we will enter into 15-year operating leases with monthly rental payments of $39 for the Nashua, New Hampshire building and $25 for the Cullman, Alabama building. These sales are subject to the satisfaction or wavier of customary closing conditions, including, without limitation, the completion by the buyer of due diligence. On April 18, 2007, the buyer completed its due diligence and closed on the Nashua, New Hampshire building. Due diligence is continuing at the Cullman, Alabama building.  We expect to record a gain of approximately $200 to $250, which will be amortized over the life of the leases.

Note 16—Facilities

On April 26, 2006, Axsys purchased a 78,000 square foot building and 10.5 acres of land in Nashua, New Hampshire for $4,000. This facility serves as the consolidated manufacturing facility for our Axsys Technologies IR Systems division, formerly operating at two facilities in New Hampshire and Massachusetts. The relocation and the closure of the two existing facilities were completed in the fourth quarter of 2006. The total pre-tax costs associated with the relocation and facilities closures were approximately $325, with an additional $2,500 of capital expenditures. These costs included equipment relocation, employee training and facility improvements. In addition, we recognized a $106 in expense for the cancellation of the existing Salem facility lease.

Facilities

On April 26, 2006, Axsys purchased a 78,000 square foot building and 10.5 acres of land in Nashua, New Hampshire for $4.0 million. This facility will become the consolidated manufacturing facility for our Axsys Technologies IR Systems division, currently operating at two facilities in New Hampshire and Massachusetts.  The relocation and the closure of the two existing facilities will be completed in the fourth quarter of 2006. The total pre-tax costs associated with the relocation and facilities closures are expected to be approximately $500 thousand, with an additional $2.0 to $2.5 million of capital expenditures.  These costs will include, but are not limited to, equipment relocation, employee training and recruitment and facility improvements. As of September 30, 2006, we have incurred $1.6 million of construction work-in process. There have been no costs incurred that are associated with the relocation and closure of our existing facilities during the first nine months of 2006.

Facilities

On April 26, 2006, Axsys purchased a 78,000 square foot building and 10.5 acres of land in Nashua, New Hampshire for $4.0 million. This facility will become the consolidated manufacturing facility for our Axsys Technologies IR Systems division, currently operating at two facilities in New Hampshire and Massachusetts.  We anticipate the relocation and closure of the two existing facilities will be completed in the fourth quarter of 2006. The total pre-tax costs associated with the relocation and facilities closures are expected to be approximately $650 thousand, with an additional $2.0 to $2.5 million of capital expenditures.  These costs will include, but are not limited to, equipment relocation, employee training and recruitment and facility improvements. There have been no costs incurred that are associated with the relocation and closure of our existing facilities during the first six months of 2006.

Facilities

On February 15, 2006, Axsys signed a definitive agreement to purchase a 78,000 square foot building and 10.5 acres of land in Nashua, New Hampshire for $3.8 million. We expect to close on this transaction by May 3, 2006. This facility will become the new consolidated manufacturing facility for our Axsys Technologies IR Systems division, currently operating at facilities in New Hampshire and Massachusetts. We anticipate the relocation will be completed in 2006.