Restructuring Charges

6 Months Ended

Jun. 30, 2014

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. In connection with this plan, we incurred pretax charges of approximately $7.5 million. For the three months ended June 30, 2013, we recorded a pretax charge of $1.0 million. For the six months ended June 30, 2014 and 2013, we recorded a pretax charge of $1.0 million and $5.9 million, respectively. 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. These activities are all within the Americas segment and were completed by March 31, 2014.

The following table summarizes the pretax charges incurred in 2014 and 2013:



	Three months ended June 30,					Six months ended June 30,				Total Charges to Date
(dollars in thousands)	2014		2013			2014		2013		Total Charges to Date
Accelerated depreciation & other	$	—	$	1,133		$	—	$	1,699	$	1,685
Other restructuring expenses	—		—			985		—		985
Included in cost of sales	—		1,133			985		1,699		2,670

Employee termination cost & other	—		(412		)	—		1,910		1,794
Fixed asset write-down	—		—			—		1,992		1,924
Other restructuring expenses	—		327			—		327		1,141
Included in special charges	—		(85		)	—		4,229		4,859
Total pretax charge	$	—	$	1,048		$	985	$	5,928	$	7,529

The following is the capacity realignment reserve activity for the six months ended June 30, 2014:



(dollars in thousands)	Reserve Balance at January 1, 2014		Total Charge to Earnings		Cash (payments) receipts			Non-cash Utilization		Reserve Balance at June 30, 2014
Employee termination cost & other	$	289	$	—	$	(289	)	$	—	$	—
Other restructuring expenses	—		985		(985		)	—		—
Total	$	289	$	985	$	(1,274	)	$	—	$	—

- 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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