NONRECURRING EVENTS

9 Months Ended

Sep. 30, 2014

NONRECURRING EVENTS

NONRECURRING EVENTS

NOTE 14 – NONRECURRING EVENTS

A fire caused damages to the roof and production area of an AptarGroup subsidiary, Graphocolor do Brasil Embalagens Ltda, on September 1, 2014.  Graphocolor is located in Jundiai, Brazil.  There were no reported injuries.  Graphocolor is primarily an internal supplier to AptarGroup of anodized aluminum components for certain dispensing systems sold to the regional beauty and personal care markets.  Until repairs to the Jundiai facility are completed, the company is using sourcing alternatives, including local sourcing and its affiliated anodizing facilities in France and the U.S. that currently import some components to the region.  AptarGroup is insured for the damages caused by the fire, including business interruption insurance, and it does not expect this incident to have a material impact on its financial results.  Costs, including the write-off of damaged fixed assets and inventory along with labor and other direct costs related to fire, of $3.7 million were incurred during the quarter.  These costs have been reported within the Condensed Consolidated Statements of Income and have been offset by the expected insurance proceeds within the same financial statement line items as the losses.

As we are still in the investigation phase, we have only established an insurance receivable for known losses for which we feel insurance reimbursement is probable.  In many cases, our insurance coverage exceeds the amount of these covered losses, but no gain contingencies have been recognized as our ability to realize those gains remains uncertain for financial reporting purposes.