Fire Gain

12 Months Ended

Dec. 31, 2011

Fire Gain

Fire Gain

Note 7—Fire Gain

        On November 16, 2008, a fire occurred at the tire and wheel plant in Bowdon, GA, and as a result the building and the majority of the machinery, equipment, records and other assets were destroyed. In order to service customers, partial operations were initiated at a facility in Heflin, AL, which has since been consolidated into the Company's facility in Jackson, TN, while some production was transferred to other tire and wheel plants or outsourced to third parties.

        From January 1, 2009 through June 30, 2009 cash proceeds of $54.5 million were received from the insurance carriers. Losses and cost incurred resulting from the fire totaling $27.6 million included $8.9 million of inventory; $5.7 million of building, machinery, equipment and other assets; and $13.0 million of costs incurred related to the fire. A pretax gain of $26.9 million was recorded in 2009 representing the difference between cash proceeds of $54.5 million and the losses of $27.6 million. An additional gain of $0.1 million was also recorded in 2009 representing sales of fire-related scrap.