GARNER, NORTH CAROLINA ACCIDENT
On June 9, 2009, an accidental explosion occurred at our manufacturing facility in Garner, North Carolina (the “Garner accident”). This facility was the primary production facility for our Slim Jim® branded meat snacks.
The costs incurred and insurance recoveries recognized for fiscal 2011 were reflected in our consolidated financial statements as follows:
|
| | | | | | | | | | | |
| Fiscal Year Ended May 29, 2011 |
| Consumer Foods | | Corporate | | Total |
Cost of goods sold: | | | | | |
Inventory write-downs and other costs | $ | 0.9 |
| | $ | — |
| | $ | 0.9 |
|
Selling, general and administrative expenses: | | | | | |
Fixed asset impairments, clean-up costs, etc. | 2.6 |
| | 0.6 |
| | 3.2 |
|
Insurance recoveries recognized | (109.4 | ) | | — |
| | (109.4 | ) |
Total selling, general and administrative expenses | (106.8 | ) | | 0.6 |
| | (106.2 | ) |
Net loss (gain) | $ | (105.9 | ) | | $ | 0.6 |
| | $ | (105.3 | ) |
The amounts in the table above exclude actual lost profits due to the interruption of the meat snacks business in the periods presented, but do reflect the recovery of the related business interruption insurance claim in fiscal 2011.
During fiscal 2011, the Company settled its property and business interruption claims related to the Garner accident with our insurance providers. The total payments received from the insurers in fiscal 2011 were $167.5 million and all previously deferred balances were immediately recognized upon settlement of the insurance claim in fiscal 2011. The insurance recoveries recognized in fiscal 2011, included in selling, general and administrative expenses, totaled $109.4 million, representing $84.0 million of reimbursement for business interruption, a $21.3 million gain on involuntary conversion of property, plant and equipment, and recovery of other expenses incurred of $4.1 million.
