Restructuring Charges

12 Months Ended

Dec. 31, 2013

Restructuring and Related Activities [Abstract]

Capacity Realignment

In February 2013, we announced 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 and accelerated depreciation, (ii) up to $2.0 million in severance and other employee related costs and (iii) up to $4.0 million in other restructuring expenses. We expect approximately $5.5 million of the pretax charge to result in cash expenditures. In 2013, we recorded a pretax charge of $6.5 million. These charges included employee termination costs, fixed asset impairment charges, depreciation expense and other restructuring expenses. Employee termination costs include severance, medical benefits and outplacement services for the terminated employees. The write-down of fixed assets was to adjust certain machinery and equipment to the estimated fair market value.

The following table summarizes the pretax charge incurred in the Americas segment for the year 2013:



(dollars in thousands)	2013
Accelerated depreciation & other	$	1,685
Included in cost of sales	1,685

Employee termination cost & other	1,794
Fixed asset write-down	1,924
Other restructuring expenses	1,141
Included in special charges	4,859
Total pretax charge	$	6,544

The following is the capacity realignment reserve activity for the year ended December 31, 2013:



(dollars in thousands)	Reserve Balance at January 1, 2013		Total Charge to Earnings		Cash (payments) receipts			Non-cash Utilization			Reserve Balance at December 31, 2013
Accelerated depreciation & other	$	—	$	1,685	$	—		$	(1,685	)	$	—
Employee termination cost & other	—		1,794		(1,505		)	—			289
Fixed asset write-down	—		1,924		—			(1,924		)	—
Other restructuring expenses	—		1,141		(1,141		)	—			—
Total	$	—	$	6,544	$	(2,646	)	$	(3,609	)	$	289

- 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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