Rationalization Charges

3 Months Ended

Mar. 31, 2013

Note 2. Rationalization Charges

As part of our plans to rationalize certain facilities, we have established reserves for employee severance and benefits and plant exit costs. Activity in our rationalization reserves since December 31, 2012 is summarized as follows:

	Employee			Plant			Non-Cash
	Severance			Exit			Asset
	and Benefits			Costs			Write-Down			Total
	(Dollars in thousands)

Balance at December 31, 2012	$	3,231		$	1,698		$	-		$	4,929

Activity for the three months ended March 31, 2013
Prior years’ rationalization plan reserves established		(151	)		462			178			489
Prior years’ rationalization plan reserves utilized		(1,201	)		(455	)		(178	)		(1,834	)
2013 rationalization plan reserves established		761			-			101			862
2013 rationalization plan reserves utilized		(358	)		-			(101	)		(459	)
Total activity		(949	)		7			-			(942	)

Balance at March 31, 2013	$	2,282		$	1,705		$	-		$	3,987

Rationalization reserves as of March 31, 2013 and December 31, 2012 are included in the Condensed Consolidated Balance Sheets as accrued liabilities. Total future cash spending of $8.4 million is expected for our outstanding rationalization plans in the current year and thereafter.

2013 Rationalization Plans

In the first quarter of 2013, we announced plans to exit our Crystal City, Texas metal container manufacturing facility and to downsize our Sacramento, California metal container manufacturing facility. Our plans include the termination of approximately 40 employees and other related plant exit costs. The total estimated costs for these rationalizations of $1.6 million consist of $0.9 million for employee severance and benefits, $0.6 million for plant exit costs and $0.1 million for the non-cash write-down in carrying value of assets. Through March 31, 2013, we recognized a total of $0.9 million of costs, which consisted of $0.8 million of employee severance and benefits and $0.1 million for the non-cash write-down in carrying value of assets. Remaining expenses and cash expenditures of $0.7 million and $1.1 million, respectively, are expected in 2013.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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