Note 6 – Impairment of Long-lived Assets and Insurance Recoveries

No impairment charges were recorded during the three-month period ended September 30, 2011. The Company recorded impairment charges related to building improvements at Company facilities that are being combined with other operating facilities or shut-down during the nine-month period ended September 30, 2011 in the amount of $246. Since the impairments relate to the Company's ongoing restructuring and cost reduction initiatives, the impairment charges are included in Acquisition integration and restructuring expenses in the Consolidated Statements of Operations. See Note 13 – Acquisition Integration and Restructuring. During the first quarter of 2010, certain newly purchased and installed production equipment sustained water damage and became no longer operable. The Company recorded an impairment charge in the amount of $680, the net book value of the damaged equipment, which is included in Impairment of long-lived assets in the Consolidated Statements of Operations for the nine-month period ended September 30, 2010, and filed a claim with its insurance carrier for the loss incurred. The expense was recorded in the North America operating segment.

The Company maintains insurance coverage for property loss, business interruption, and directors and officers liability and records insurance recoveries in the period in which the insurance carrier validates the claim and confirms the amount of reimbursement to be paid. No insurance recoveries were recorded during the three-month period ended September 30, 2011. The Company received insurance settlements during the nine-month period ended September 30, 2011 in the amount of $204, related to the recovery of legal fees for employment related issues and a final settlement on a 2010 property loss. During the three and nine-month periods ended September 30, 2010, the Company received insurance settlements totaling $1,475 and $2,854, respectively, related to property losses at two of the Company's North American facilities and a directors and officers liability insurance settlement representing reimbursement of certain expenses related to the Company's former SEC investigation. See Note 12 – Contingencies for further information related to the SEC investigation. The table below summarizes where the insurance recoveries for the three and nine-month periods ended September 30, 2011 and 2010 are reflected in the Consolidated Statements of Operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010

Cost of sales:
Business interruption coverage	$	--	$	119	$	--	$	119

Total cost of sales		--		119		--		119

Selling, general and administrative expenses:
Recovery of legal fees		--		--		111		--
Business interruption coverage		--		--		93		--
Property coverage		--		160		--		1,539
Directors and officers liability coverage		--		1,196		--		1,196

Total selling, general and administrative expenses		--		1,356		204		2,735

Total insurance recoveries	$	--	$	1,475	$	204	$	2,854