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Restructuring and Asset Impairment | 3 Months Ended
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Mar. 31, 2019
Restructuring and Related Activities [Abstract] |
Restructuring and Asset Impairment | Restructuring and Asset Impairment The Company has engaged in a number of restructuring actions over the past several years. Actions initiated in 2019 and 2018 are reported as “2019 Actions” and “2018 Actions,” respectively. Actions initiated prior to 2018, all of which were substantially complete at March 31, 2019, are reported as “2017 and Earlier Actions.” Following are the total restructuring and asset impairment charges, net of adjustments, recognized by the Company during the periods presented:
|  |  |  | Three Months Ended |  |  |  |
|  |  |  | March 31, 2019 |  |  |  | April 1, 2018
Restructuring/Asset impairment: |  |  |  |  |  |  |  |
2019 Actions |  |  |  | $ | 6,389 |  |  |  | $ | —
2018 Actions |  |  |  | 4,046 |  |  |  | 2,207
2017 and Earlier Actions |  |  |  | 237 |  |  |  | 856
Restructuring/Asset impairment charges |  |  |  | 10,672 |  |  |  | 3,063
Income tax benefit |  |  |  | (2,638) |  |  |  | (685)
Less: Costs attributable to noncontrolling interests, net of tax |  |  |  | (69) |  |  |  | (5)
Restructuring/asset impairment charges attributable to Sonoco, net of tax |  |  |  | $ | 7,965 |  |  |  | $ | 2,373
Pre-tax restructuring and asset impairment charges are included in “Restructuring/Asset impairment charges” in the Condensed Consolidated Statements of Income. When recognizable in accordance with GAAP, the Company expects to recognize future additional charges totaling approximately $5,100 in connection with previously announced restructuring actions. The Company believes that the majority of these charges will be incurred and paid by the end of 2019. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken. 2019 Actions During 2019, the Company announced the elimination of a forming film production line at a flexible packaging facility in the United States, and initiated the closure of a composite can and injection molding facility in Germany (both part of the Consumer Packaging segment). In addition, approximately 90 positions were eliminated in the first three months of 2019 in conjunction with the Company's ongoing organizational effectiveness efforts. Below is a summary of 2019 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion.
2019 Actions |  | First Quarter 2019 |  |  |  | Estimated Total Cost
Severance and Termination Benefits |  |  |  |  |  |
Consumer Packaging |  | $ | 2,989 |  |  |  | $ | 6,639
Paper and Industrial Converted Products |  | 422 |  |  |  | 422
Protective Solutions |  | 341 |  |  |  | 341
Corporate |  | 1,726 |  |  |  | 1,876
Asset Impairment / Disposal of Assets |  |  |  |  |  |
Consumer Packaging |  | 312 |  |  |  | 312
Other Costs |  |  |  |  |  |
Consumer Packaging |  | 442 |  |  |  | 442
Display and Packaging |  | 155 |  |  |  | 255
Paper and Industrial Converted Products |  | 2 |  |  |  | 2
Total Charges and Adjustments |  | $ | 6,389 |  |  |  | $ | 10,289
The following table sets forth the activity in the 2019 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets:
2019 Actions |  | Severance and Termination Benefits |  | Asset Impairment/ Disposal of Assets |  | Other Costs |  | Total
Accrual Activity 2019 Year to Date |  |  |  |  |  |  |  |
Liability at December 31, 2018 |  | $ | — |  | $ | — |  | $ | — |  | $ | —
2019 charges |  | 5,478 |  | 312 |  | 599 |  | 6,389
Cash receipts/(payments) |  | (3,165) |  | — |  | (212) |  | (3,377)
Asset write downs/disposals |  | — |  | (312) |  | — |  | (312)
Foreign currency translation |  | (1) |  | — |  | — |  | (1)
Liability at March 31, 2019 |  | $ | 2,312 |  | $ | — |  | $ | 387 |  | $ | 2,699
"Asset Impairment/Disposal of Assets" consist of an impairment charge resulting from the elimination of a forming film line at a flexible packaging facility. “Other Costs” consist primarily of costs related to plant closures including equipment removal, utilities, plant security, property taxes and insurance. The Company expects to pay the majority of the remaining 2019 Actions restructuring costs by the end of 2019 using cash generated from operations. 2018 Actions During 2018, the Company announced the closure of a flexible packaging plant in North Carolina, a global brand management facility in Canada, and a thermoformed packaging plant in California (all part of the Consumer Packaging segment), five tube and core plants - one in Alabama, one in Canada, one in Indonesia, one in Russia, and one in Norway (all part of the Paper and Industrial Converted Products segment), and a protective packaging plant in North Carolina (part of the Protective Solutions segment). Restructuring actions in the Display and Packaging segment included charges associated with exiting a single-customer contract at a packaging center near Atlanta, Georgia. In addition, approximately 120 positions were eliminated throughout 2018 in conjunction with the Company's ongoing organizational effectiveness efforts. Below is a summary of 2018 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion.
|  |  |  | Three Months Ended |  |  |  |  |  |  |  |
2018 Actions |  |  |  | March 31, 2019 |  |  |  | April 1, 2018 |  |  |  |
Severance and Termination Benefits |  |  |  |  |  |  |  |  |  |  |  |
Consumer Packaging |  |  |  | $ | 641 |  |  |  | $ | 788 |  | $ | 5,341 |  | $ | 5,341
Display and Packaging |  |  |  | 2 |  |  |  | 175 |  | 1,941 |  | 1,941
Paper and Industrial Converted Products |  |  |  | 169 |  |  |  | 991 |  | 3,280 |  | 3,280
Protective Solutions |  |  |  | (1) |  |  |  | 259 |  | 1,074 |  | 1,074
Corporate |  |  |  | — |  |  |  | 223 |  | 243 |  | 243
Asset Impairment / Disposal of Assets |  |  |  |  |  |  |  |  |  |  |  |
Consumer Packaging |  |  |  | 1,007 |  |  |  | (14) |  | 3,695 |  | 3,695
Display and Packaging |  |  |  | 87 |  |  |  | (272) |  | 4,712 |  | 4,712
Paper and Industrial Converted Products |  |  |  | 226 |  |  |  | — |  | 344 |  | 344
Protective Solutions |  |  |  | — |  |  |  | — |  | (243) |  | (243)
Other Costs |  |  |  |  |  |  |  |  |  |  |  |
Consumer Packaging |  |  |  | 1,809 |  |  |  | 11 |  | 4,199 |  | 5,049
Display and Packaging |  |  |  | 48 |  |  |  | — |  | 9,898 |  | 10,048
Paper and Industrial Converted Products |  |  |  | 40 |  |  |  | — |  | 1,801 |  | 1,901
Protective Solutions |  |  |  | 18 |  |  |  | 46 |  | 64 |  | 64
Corporate |  |  |  | — |  |  |  | — |  | (10) |  | (10)
Total Charges and Adjustments |  |  |  | $ | 4,046 |  |  |  | $ | 2,207 |  | $ | 36,339 |  | $ | 37,439
The following table sets forth the activity in the 2018 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets:
2018 Actions |  | Severance and Termination Benefits |  | Asset Impairment/ Disposal of Assets |  | Other Costs |  | Total
Accrual Activity 2019 Year to Date |  |  |  |  |  |  |  |
Liability at December 31, 2018 |  | $ | 3,194 |  | $ | — |  | $ | 179 |  | $ | 3,373
2019 charges |  | 811 |  | 1,320 |  | 1,915 |  | 4,046
Cash receipts/(payments) |  | (1,961) |  | 422 |  | (1,977) |  | (3,516)
Asset write downs/disposals |  | — |  | (1,742) |  | — |  | (1,742)
Foreign currency translation |  | 1 |  | — |  | 3 |  | 4
Liability at March 31, 2019 |  | $ | 2,045 |  | $ | — |  | $ | 120 |  | $ | 2,165
Included in "Asset Impairment/Disposal of Assets" above are losses totaling $232 related to the sale of fixed assets and inventory associated with the closure of a tube and core plant in Indonesia. The Company received proceeds of $416 from this sale and wrote off assets with a book value totaling $648. Additionally, "Asset Impairment/Disposal of Assets" above includes impairment charges of $909 related to the closure of a thermoformed packaging plant in California. “Other costs” consist primarily of costs related to plant closures including equipment removal, utilities, plant security, property taxes and insurance. The Company expects to pay the majority of the remaining 2018 Actions restructuring costs by the end of 2019 using cash generated from operations. 2017 and Earlier Actions 2017 and Earlier Actions are comprised of a number of plant closures and workforce reductions initiated prior to 2018. Charges for these actions in both 2019 and 2018 primarily relate t o the cost of plant closures including severance, equipment removal, plant security, property taxes and insurance. The Company expects to recognize future pretax charges of approximatel y $100 a ssociated with 2017 and Earlier Actions. Below is a summary of expenses/(income) incurred by segment for 2017 and Earlier Actions for the three-month periods ended March 31, 2019 and April 1, 2018.
|  |  |  | Three Months Ended |  |  |  |
2017 and Earlier Actions |  |  |  | March 31, 2019 |  |  |  | April 1, 2018
Consumer Packaging |  |  |  | $ | 55 |  |  |  | $ | 944
Display and Packaging |  |  |  | 83 |  |  |  | (189)
Paper and Industrial Converted Products |  |  |  | 15 |  |  |  | (144)
Protective Solutions |  |  |  | 84 |  |  |  | 245
Total (credits)/charges, net of adjustments |  |  |  | $ | 237 |  |  |  | $ | 856
The accrual for 2017 and Earlier Actions totaled $1,653 and $4,199 at March 31, 2019 and December 31, 2018, respectively, and is included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets. The majority of the liability associated with 2017 and Earlier Actions relates to unpaid severance costs and is expected to be paid by the end of 2019 using cash generated from operations.

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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