Related-Party Transactions |
12 Months Ended |
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Mar. 31, 2016 | |
| Related Party Transactions [Abstract] | |
| Related-Party Transactions |
Related-Party Transactions
In connection with the Sumac transaction, one of the former principals retained 25% of the ownership of the Sumac business unit. He is also serving as general manager of the Sumac business unit as an employee of Thermon. He, along with the other two former principals of Sumac, will share the payment of accrued employee compensation related to the Sumac acquisition of $5,775 that is expected to be paid in fiscal 2017.
Since the acquisition by our former private equity sponsors that was completed on April 30, 2010, we have paid certain amounts to the Predecessor owners in settlement of CHS Transactions and have also received certain amounts that were identified as potential indemnity items at the time of the transaction. Certain members of our current management continue to be investors in the Predecessor ownership fund. Therefore, these payments made and received are considered to be related party transactions.
During fiscal 2015, the private equity firm representing our Predecessor owners expressed an interest in obtaining a release of the remaining indemnity fund of $3,589 and closing their fund. We agreed to the release after reserving for certain indemnity items already paid as well as an estimate for other potential liabilities. The settlement amount of $1,700 was paid with cash of $1,133 and a release of amounts due to the Predecessor owners of $567. After offsetting certain indemnity items already included in our consolidated balance sheet and consolidated statement of operations, we recorded miscellaneous income of $931. We have released the Predecessor owners from any further obligations in the event of any breaches of representation and warranties contained in the definitive agreements. See Note 12, "Commitments and Contingencies."
During fiscal 2014, we paid $2,055 to the Predecessor owners which related to an income tax refund from periods in which they were in control of the Company. Separately, during fiscal 2014, "Obligations due to settle the CHS Transactions" was reduced by $617, of which $42 was withheld for professional fees incurred by the Company in connection with a concluded audit by the United States Internal Revenue Service, the remaining $575 was determined not to be payable to the Predecessor owners of the Company.
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