Restructuring Charges

12 Months Ended

Dec. 31, 2011

Restructuring Charges [Abstract]

Restructuring and Related Activities Disclosure

Restructuring Charges

Facility Closures

In December 2008, we announced that our Syracuse China manufacturing facility and our Mira Loma, California distribution center would be shut down in early to mid-2009 in order to reduce costs, and accordingly recorded a pre-tax charge of $29.1 million in 2008. The principal components of the charge included fixed asset and inventory write-downs, employee severance and pension and postretirement charges. The Syracuse China facility was closed on April 9, 2009 and the Mira Loma distribution center was closed on May 31, 2009.

In 2009, we recorded an additional pre-tax charge of $3.8 million related to the closures of the Syracuse China manufacturing facility and the Mira Loma, California distribution center. The principal components of the charge included building site clean up, inventory write-downs related to work-in-process and raw materials of $1.0 million net of fixed asset recoveries (net of write-downs), employee severance related costs and other of $1.7 million and pension and postretirement charges of $0.3 million. Further, depreciation expense was increased by $0.7 million at Syracuse in the first quarter of 2009 to reflect the shorter life of the remaining assets. In addition, natural gas hedges of $0.2 million for the Syracuse China facility were charged to other income (expense) on the Consolidated Statements of Operations.

In 2010, we recorded an additional pre-tax charge of $1.2 million related to the closures of the Syracuse China manufacturing facility and the Mira Loma, California distribution center. The principal components of the charge included a $0.6 million charge to write-down the value of land at Syracuse, and site cleanup of $0.4 million. In addition, natural gas hedge ineffectiveness of $0.1 million was charged to other income (expense) on the Consolidated Statements of Operations.

We incurred charges of approximately $0.1 million in 2011 related to other costs net of building site clean-up adjustments in connection with the sale of the property in Syracuse, New York in March 2011. This amount was included in special charges on the Consolidated Statement of Operations.

The following table summarizes the facility closure charges for the years 2011, 2010 and 2009:

	2011								2010								2009
(dollars in thousands)	Glass Operations		Other Operations			Total			Glass Operations		Other Operations			Total			Glass Operations			Other Operations			Total
Inventory write-down	$	—	$	—		$	—		$	—	$	(12	)	$	(12	)	$	—		$	977		$	977
Pension & postretirement welfare	—		—			—			—		—			—			—			278			278
Fixed asset depreciation	—		—			—			—		—			—			—			705			705
Included in cost of sales	—		—			—			—		(12		)	(12		)	—			1,960			1,960
Building site clean-up & fixed asset write-down	—		(116		)	(116		)	—		1,012			1,012			112			(138		)	(26		)
Employee termination cost & other	—		167			167			28		25			53			(98		)	1,755			1,657
Included in special charges	—		51			51			28		1,037			1,065			14			1,617			1,631
Ineffectiveness of natural gas hedge	—		—			—			—		130			130			—			232			232
Included in other expense	—		—			—			—		130			130			—			232			232
Total pretax charge	$	—	$	51		$	51		$	28	$	1,155		$	1,183		$	14		$	3,809		$	3,823

The following reflects the balance sheet activity related to the facility closure charge for the year ended December 31, 2011:

	Balances at January 1, 2011		Total Charge to Earnings			Cash (Payments) Receipts			Inventory & Fixed Asset Write Downs		Non-cash Utilization			Balances at December 31, 2011
(dollars in thousands)
Building site clean-up & fixed asset write-down	$	151	$	(116	)	$	(5	)	$	21	$	(51	)	$	—
Employee termination cost & other	301		167			(314		)	—		(154		)	—
Total	$	452	$	51		$	(319	)	$	21	$	(205	)	$	—

The following reflects the balance sheet activity related to the facility closure charge for the year ended December 31, 2010:

	Reserve Balances at January 1, 2010		Total Charge to Earnings			Cash (Payments) Receipts			Inventory & Fixed Asset Write Downs			Non-cash Utilization			Balances at December 31, 2010
(dollars in thousands)
Inventory write-down	$	—	$	(12	)	$	12		$	—		$	—		$	—
Building site clean-up & fixed asset write-down	306		1,012			(538		)	(629		)	—			151
Employee termination cost & other	710		53			(462		)	—			—			301
Ineffectiveness of natural gas hedges	—		130			—			—			(130		)	—
Total	$	1,016	$	1,183		$	(988	)	$	(629	)	$	(130	)	$	452

The December 31, 2010 balance of $0.5 million was included in accrued liabilities on the Consolidated Balance Sheets. The carrying value of this balance approximates its fair value.

The activities related to our closure of the Syracuse China manufacturing facility and our Mira Loma, California distribution center are complete. The following reflects the total cumulative expenses to date (incurred from the fourth quarter of 2008 through December 31, 2011) related to the facility closure activity:

(dollars in thousands)	Glass Operations		Other Operations		Charges To Date
Inventory write-down	$	192	$	10,541	$	10,733
Pension & postretirement welfare	—		4,448		4,448
Fixed asset depreciation	—		966		966
Included in cost of sales	192		15,955		16,147
Employee termination cost & other	548		6,149		6,697
Building site clean-up & fixed asset write-down	177		10,418		10,595
Included in special charges	725		16,567		17,292
Ineffectiveness of natural gas hedge	—		745		745
Included in other expense	—		745		745
Total pretax charge	$	917	$	33,267	$	34,184

Fixed Asset and Inventory Write-down

In August 2010, we wrote down decorating assets in our Shreveport, Louisiana facility as a result of our decision to outsource our U.S. decorating business. In 2010, we recorded a charge of $0.6 million to write down inventory and spare machine parts. This amount was included in cost of sales on the Consolidated Statement of Operations in the Glass Operations segment. Charges of $0.7 million were recorded in 2010 for site cleanup and fixed assets write down. This amount was included in special charges on the Consolidated Statement of Operations in the Glass Operations segment. No employee related costs were incurred, as all employees were reassigned into the facility.

In 2011, we recorded a $(0.3) million income adjustment to special charges on the Consolidated Statement of Operations in the Glass Operations segment. Also in 2011, we recorded a charge of $0.2 million to write down inventory and spare machine parts. This amount was included in cost of sales on the Consolidated Statement of Operations in the Glass Operations segment.

The following reflects the balance sheet activity related to the fixed asset and inventory write-down charge for the year ended December 31, 2011:

	Reserve Balances at January 1, 2011		Total Charge to Earnings			Cash (Payments) Receipts			Inventory & Fixed Asset Write Downs			Reserve Balances at December 31, 2011
(dollars in thousands)
Building site clean-up & fixed asset write-down	$	316	$	(135	)	$	(39	)	$	(142	)	$	—
Total	$	316	$	(135	)	$	(39	)	$	(142	)	$	—

The following reflects the balance sheet activity related to the fixed asset and inventory write-down charge for the year ended December 31, 2010:

	Reserve Balances at January 1, 2010		Total Charge to Earnings		Cash (Payments) Receipts		Inventory & Fixed Asset Write Downs			Reserve Balances at December 31, 2010
(dollars in thousands)
Inventory write-down	$	—	$	578	$	—	$	(578	)	$	—
Building site clean-up & fixed asset write-down	—		737		9		(430		)	316
Total	$	—	$	1,315	$	9	$	(1,008	)	$	316

The activities related to our write-down of decorating fixed assets and inventory are complete.

Summary of Total Special Charges

The following table summarizes by year the special charges mentioned above and their classifications in the Consolidated Statements of Operations:

(dollars in thousands)	2011			2010		2009
Cost of sales	$	197		$	566	$	1,960
Special charges	(281		)	1,802		1,631
Other (income) expense	—			130		232
Total (income) expense	$	(84	)	$	2,498	$	3,823