Valdosta Mill Fire Insurance Recovery

6 Months Ended

Jun. 30, 2011

Valdosta Mill Fire Insurance Recovery

Valdosta Mill Fire Insurance Recovery

18. Valdosta Mill Fire Insurance Recovery

On April 4, 2011, the Company's Valdosta, Georgia mill had a fire that was confined to the turbine generator room. The fire resulted in production and sales volume losses of 11,000 tons and significant repair and demolition expenses to affected buildings and equipment. PCA is insured for the lost production, replacement value of destroyed assets, and related expenses, subject to a $3 million deductible. The Company filed an insurance claim for the total cost of the fire and received $6.5 million, net of the $3.0 million deductible, for losses incurred and capital expenditures during the quarter. The $6.5 million in insurance proceeds is included in net cash provided by operating activities ($5.5 million) and in net cash used for investing activities ($1.0 million) based on the nature of the reimbursement. PCA expects to receive additional insurance proceeds for capital expenditures as work is completed.