Restructuring Charges

3 Months Ended

Mar. 31, 2013

Restructuring and Related Activities [Abstract]

Capacity Realignment

In February 2013, we announced our plans to discontinue production of certain glassware in North America and reduce manufacturing capacity at our Shreveport, Louisiana manufacturing facility. As a result, on May 30, 2013, we will cease production of certain glassware in North America, discontinue the use of a furnace at our Shreveport, Louisiana manufacturing plant and relocate a portion of the production from the idled furnace to our Toledo, Ohio and Monterrey, Mexico locations. These activities are all within the Americas segment and are expected to be completed by the end of the first quarter of 2014. In connection with this plan, we expect to incur a pretax charge in the range of approximately $8.0 million to $10.0 million. This estimate consists of: (i) up to $4.5 million in fixed asset impairment charges, (ii) up to $2.5 million in severance and other employee related costs and (iii) up to $3.0 million in production transfer expenses. We expect approximately $5.0 million of the pretax charge to result in cash expenditures, most of which is expected to be paid throughout the remainder of 2013. For the three months ended March 31, 2013, we recorded a pretax charge of $4.9 million, which included employee termination costs, fixed asset impairment charges and depreciation expense. Employee termination costs include severance, medical benefits and outplacement services for the employees that will be terminated. The write-down of fixed assets is to adjust certain machinery and equipment to the estimated fair market value.

The following table summarizes the pretax charge incurred through March 31, 2013:



(dollars in thousands)	Three months ended March 31, 2013
Accelerated depreciation	$	566
Included in cost of sales	566
Employee termination cost & other	2,322
Fixed asset write-down	1,992
Included in special charges	4,314
Total pretax charge	$	4,880

The following is the capacity realignment reserve activity for the three months ended March 31, 2013:



(dollars in thousands)	Reserve Balance at January 1, 2013		Total Charge to Earnings		Cash (payments) receipts			Non-cash Utilization			Reserve Balance at March 31, 2013
Accelerated depreciation	$	—	$	566	$	—		$	(566	)	$	—
Employee termination cost & other	—		2,322		(127		)	—			2,195
Fixed asset write-down	—		1,992		—			(1,992		)	—
Total	$	—	$	4,880	$	(127	)	$	(2,558	)	$	2,195

- 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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