Restructuring Charges

12 Months Ended

Dec. 31, 2012

Restructuring and Related Activities [Abstract]

Restructuring Charges

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 and $3.8 million in 2009. The principal components of the 2008 charge included fixed asset and inventory write-downs, employee severance and pension and postretirement charges. The 2009 charge related primarily to building site clean up, inventory write-downs, pension and postretirement charges, depreciation expense, natural gas hedges, and employee severance and other. The Syracuse China facility was closed on April 9, 2009 and the Mira Loma distribution center was closed on May 31, 2009.

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. Since the activities related to our closure of the Syracuse China manufacturing facility were complete as of March 31, 2011, no additional charges were incurred for the year ended December 31, 2012.

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

	2011								2010
(dollars in thousands)	Glass Operations		Other Operations			Total			Glass Operations		Other Operations			Total
Inventory write-down	$	—	$	—		$	—		$	—	$	(12	)	$	(12	)
Included in cost of sales	—		—			—			—		(12		)	(12		)
Employee termination cost & other	—		167			167			28		25			53
Building site clean-up & fixed asset/land write-down	—		(116		)	(116		)	—		1,012			1,012
Included in special charges	—		51			51			28		1,037			1,065
Ineffectiveness of natural gas hedge	—		—			—			—		130			130
Included in other (income) expense	—		—			—			—		130			130
Total pretax charge	$	—	$	51		$	51		$	28	$	1,155		$	1,183

The following reflects the balance sheet activity related to the facility closure 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		Non-cash Utilization			Reserve Balances at December 31, 2011
(dollars in thousands)
Employee termination cost & other	$	301	$	167		$	(314	)	$	—	$	(154	)	$	—
Building site clean-up & fixed asset/land write-down	151		(116		)	(5		)	21		(51		)	—
Total	$	452	$	51		$	(319	)	$	21	$	(205	)	$	—

The activities related to our closure of the Syracuse China manufacturing facility and our Mira Loma, California distribution center were complete in 2011. The following reflects the total cumulative expenses (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/land 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 (income) 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 activities related to our write-down of decorating fixed assets and inventory were completed in 2011. 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	)	$	—

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)	2012		2011			2010
Cost of sales	$	—	$	197		$	566
Special charges	—		(281		)	1,802
Other (income) expense	—		—			130
Total (income) expense	$	—	$	(84	)	$	2,498