Restructuring Charges

9 Months Ended

Sep. 30, 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 ceased production of certain glassware in North America, discontinued the use of a furnace at our Shreveport, Louisiana, manufacturing plant and began relocating 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 during the first quarter of 2014. In connection with this plan, we expect to incur pretax charges in the range of approximately $8.0 million to $10.0 million. This estimate consists of: (i) up to $4.0 million in fixed asset impairment charges, (ii) up to $2.0 million in severance and other employee related costs and (iii) up to $4.0 million in production transfer expenses. We expect approximately $5.5 million of the pretax charge to result in cash expenditures. For the three and nine months ended September 30, 2013, we recorded a pretax charge of $0.4 million and $6.3 million, respectively. These charges included employee termination costs, fixed asset impairment charges, production transfer cost and depreciation expense. Employee termination costs include severance, medical benefits and outplacement services for the terminated employees. 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 for the three and nine months ended September 30, 2013:



(dollars in thousands)	Three months ended September 30, 2013			Nine months ended September 30, 2013
Accelerated depreciation	$	—		$	1,699
Included in cost of sales	—			1,699

Employee termination cost & other	(23		)	1,887
Fixed asset write-down	—			1,992
Production transfer expenses	413			740
Included in special charges	390			4,619
Total pretax charge	$	390		$	6,318

The following is the capacity realignment reserve activity for the nine months ended September 30, 2013:



(dollars in thousands)	Reserve Balance at January 1, 2013		Total Charge to Earnings		Cash (payments) receipts			Non-cash Utilization			Reserve Balance at September 30, 2013
Accelerated depreciation	$	—	$	1,699	$	—		$	(1,699	)	$	—
Employee termination cost & other	—		1,887		(1,020		)	—			867
Fixed asset write-down	—		1,992		—			(1,992		)	—
Production transfer expenses	—		740		(740		)	—			—
Total	$	—	$	6,318	$	(1,760	)	$	(3,691	)	$	867

- 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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