Rationalization Charges

6 Months Ended

Jun. 30, 2012

Rationalization Charges

Note 3.     Rationalization Charges

As part of our plans to rationalize certain facilities, we have established reserves for employee severance and benefits and plant exit costs.  Activity in our rationalization reserves since December 31, 2011 is summarized as follows:

	Employee			Plant			Non-Cash
	Severance			Exit			Asset
	and Benefits			Costs			Write-Down			Total
	(Dollars in thousands)
Balance at December 31, 2011	$	4,385		$	211		$	-		$	4,596
Activity for the six months ended June 30, 2012
Prior years’ rationalization plan reserves established		460			(249	)		29			240
Prior years’ rationalization plan reserves utilized		(2,364	)		249			(29	)		(2,144	)
2012 rationalization plan reserves established		2,257			752			512			3,521
2012 rationalization plan reserves utilized		(580	)		(752	)		(512	)		(1,844	)
Currency translation		(97	)		-			-			(97	)
Total activity		(324	)		-			-			(324	)
Balance at June 30, 2012	$	4,061		$	211		$	-		$	4,272

Rationalization reserves as of June 30, 2012 and December 31, 2011 are included in the Condensed Consolidated Balance Sheets as accrued liabilities.

2012 Rationalization Plans

In the first quarter of 2012, we announced a plan to exit our Breinigsville (Allentown), Pennsylvania plastic container manufacturing facility.  Our plan included the termination of approximately 32 employees and other related plant exit costs.  The total costs for the rationalization of this facility of $2.5 million consist of $0.2 million for employee severance and benefits, $1.7 million for plant exit costs and $0.6 million for the non-cash write-down in carrying value of assets.  Through June 30, 2012, we recognized a total of $1.4 million of costs, which consisted of $0.2 million of employee severance and benefits, $0.7 million for plant exit costs and $0.5 million for the non-cash write-down in carrying value of assets.  The plant has ceased operations.  Remaining expenses and cash expenditures of $1.1 million and $1.0 million, respectively, are expected primarily in 2012.

In the first quarter of 2012, we announced plans to reduce costs in the U.S. corporate office and European manufacturing facilities of our closures business through the termination of approximately 49 employees, with total estimated costs of $3.5 million for employee severance and benefits.  Through June 30, 2012, we recognized a total of $2.1 million of costs and made cash payments of $0.5 million.  Remaining expenses and cash expenditures of $1.4 million and $3.0 million, respectively, are expected primarily in 2012.