15. Fire Related Gain (Loss) And Insurance Recovery

On March 24, 2010, the Company sustained fire damage at its then leased manufacturing facility in Mexicali, Mexico. This facility manufactured products for both SLPE and MTE. The fire was contained to an area that manufactured MTE products. The Company was fully insured for the replacement of the assets damaged in the fire and for the loss of profits due to the business interruption and changed conditions caused by the fire. Details of the net fire related gain (loss) are as follows:


	Six Months Ended
	June 30,
	2011		2010
	(in thousands)
Fire related loss	$	—	$	(663	)
Insurance recovery		277		555

Net fire related gain (loss)	$	277	$	(108	)

The Company’s fire related loss includes the destruction of property and equipment, damaged inventory, cleanup costs and increased operating expenses incurred as a result of the fire. The Company’s insurance recovery represents the replacement cost of property and equipment damaged as a result of the fire, the fair market value of inventory damaged in the fire, cleanup costs and increased business expenses, net of applicable adjustments and deductibles. As of December 31, 2010, the Company’s estimated insurance recoveries equaled $533,000.

During June 2011, the Company settled the fire damage claims with its insurance carriers for $810,000 and as a result the Company recorded a gain related to the fire of $277,000. As of June 30, 2011, the Company’s receivable related to the fire damages equaled $610,000 since the Company received a $200,000 advance from its carrier related to the fire loss in July 2010. The Company received the outstanding $610,000 from its insurance carriers on July 15, 2011. No additional material gains, losses or recoveries are expected to be recognized in subsequent periods related to the fire loss.