

NOTE 17:	PROPERTY AND BUSINESS INTERRUPTION INSURANCE CLAIMS AND RECOVERIES

During January 2014, the Company experienced a fire at its Indiana facility. The fire damaged certain equipment in the feed dryer house and caused a temporary loss of production. The fire did not impact the Company's own or customer-owned warehoused inventory. By the end of February the facility was at pre-fire production levels. We wrote off $160 of damaged assets, which is included in Insurance recoveries on the Consolidated Statement of Operations for the year ended December 31, 2014, and incurred $447 of out-of-pocket expenses related to interruption of business, which are included as a reduction to Cost of sales on the Consolidated Statement of Operations for the year ended December 31, 2014.

During the year ended December 31, 2014, the Company received $9,375 of insurance recoveries. In December 2014, the Company negotiated a final settlement with its insurance carrier to close this claim. As part of the settlement, the Company assumed the risk of all future business interruption until permanent repairs are completed, which is expected by the end of 2015.

During October 2014, the Company experienced a fire at its Atchison facility. Certain equipment in the facility's feed drying operations was damaged, but repairable, and the Company experienced a seven-day temporary loss of production. The Company incurred $170 of out-of-pocket expenses to repair this equipment. These costs are considered business interruption costs which are included as a reduction to Cost of sales on the Consolidated Statement of Operations for the year ended December 31, 2014. The Company is currently working with its insurance carrier to determine the coverage for equipment damage and business interruption losses.

Detail of the activities related to the property and business interruption insurance claims and recoveries, and where the net impacts are recorded on the Consolidated Statement of Operations, is as follows:



	Year Ended December 31,
	January Fire (Indiana Facility)		October Fire (Atchison Facility)			Total
Total insurance recoveries	$	9,375	$	—		$	9,375
Insurance recoveries - interruption of business	$	925	$	—		$	925
Less: out-of-pocket expenses related to interruption of business in Cost of Sales	447		170			617
Net reduction (increase) to Cost of Sales	$	478	$	(170	)	$	308

Insurance recoveries - property damage	$	8,450	$	—		$	8,450
Less: Net book value of property loss in Insurance Recoveries	160		—			160
Insurance Recoveries	$	8,290	$	—		$	8,290