Selling, general and administrative expenses were $38.4 million for the fourth quarter of 2012 compared with $36.1 million for the fourth quarter of 2011. The year-over-year increase was primarily driven by higher short-term incentive compensation, which included a discretionary decision by the Board of Directors to pay an increased amount for the fiscal 2012 plan year that resulted in an incremental $1.9 million of expense in the fourth quarter.
Volume-related expenses such as shipping and handling as well as selling and marketing costs were also higher year-over-year. These amounts were partially offset by cost reduction initiatives implemented during the year, which reduced employee-related expenses.
Special charges were $6.7 million for the fourth quarter of 2012 and included $3.5 million related to our internal redesign and restructuring of global operations initiative as well as $2.1 million related to our plant realignment cost initiative. Special charges were $11.9 million for the fourth quarter of 2011 and included $9.3 million related to goodwill and asset impairment charges. Other costs included merger related expenses and other cost related to the flood at our Colombia facility.
Polymer Group