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Restructuring and Asset Impairment | 3 Months Ended
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Apr. 03, 2022
Restructuring and Related Activities [Abstract] |
Restructuring and Asset Impairment | Restructuring and Asset Impairment Due to its geographic footprint and the cost-competitive nature of its businesses, the Company is continually seeking the most cost-effective means and structure to serve its customers and to respond to fundamental changes in its markets. As such, restructuring costs have been, and are expected to be, a recurring component of the Company's operating costs. The amount of these costs can vary significantly from quarter to quarter and from year to year depending upon the scope and location of the restructuring activities. Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented:
|  | Three Months Ended |  |
|  | April 3, 2022 |  | April 4, 2021 |  |  |  |
Restructuring and restructuring-related asset impairment charges |  | $ | 5,753 |  |  | $ | 2,697 |  |  |  |  |
Other asset impairments |  | 6,389 |  |  | 4,149 |  |  |  |  |
Restructuring/Asset Impairment Charges |  | $ | 12,142 |  |  | $ | 6,846 |  |  |  |  |
The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred:
|  | Three Months Ended |  |
|  | April 3, 2022 |  | April 4, 2021 |  |  |  |
Severance and Termination Benefits |  | $ | 2,099 |  |  | $ | 1,428 |  |  |  |  |
Asset Impairments/(Gains from Disposal of Assets) |  | 445 |  |  | (864) |  |  |  |  |
Other Costs |  | 3,209 |  |  | 2,133 |  |  |  |  |
Restructuring and restructuring-related asset impairment charges |  | $ | 5,753 |  |  | $ | 2,697 |  |  |  |  |
The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment:
|  | Three Months Ended |  |
|  | April 3, 2022 |  | April 4, 2021 |  |  |  |
Consumer Packaging |  | $ | 1,635 |  |  | $ | 1,085 |  |  |  |  |
Industrial Paper Packaging |  | 1,348 |  |  | 1,433 |  |  |  |  |
All Other |  | 78 |  |  | 165 |  |  |  |  |
Corporate |  | 2,692 |  |  | 14 |  |  |  |  |
Restructuring and restructuring-related asset impairment charges |  | $ | 5,753 |  |  | $ | 2,697 |  |  |  |  |
Restructuring and restructuring-related asset impairment charges are included in “Restructuring/Asset impairment charges” in the Company's Condensed Consolidated Statements of Income. The following table sets forth the activity in the restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets:
|  | Severance and Termination Benefits |  | Asset Impairment/ Disposal of Assets |  | Other Costs |  | Total
Accrual Activity |  |  |  |
Liability at December 31, 2021 |  | $ | 10,917 |  |  | $ | — |  |  | $ | 1,873 |  |  | $ | 12,790 |
2022 charges |  | 2,099 |  |  | 445 |  |  | 3,209 |  |  | 5,753 |
Cash (payments)/receipts |  | (4,932) |  |  | 33 |  |  | (4,570) |  |  | (9,469) |
Asset write downs/disposals |  | — |  |  | (478) |  |  | — |  |  | (478) |
Foreign currency translation |  | 5 |  |  | — |  |  | (38) |  |  | (33) |
Liability at April 3, 2022 |  | $ | 8,089 |  |  | $ | — |  |  | $ | 474 |  |  | $ | 8,563 |
"Severance and Termination Benefits" during the first three months of 2022 includes the cost of severance for approximately 125 employees whose positions were eliminated in conjunction with the Company's ongoing organizational effectiveness efforts. "Asset Impairment/Disposal of Assets" during the first three months of 2022 consists primarily of asset impairments in the Industrial Paper Packaging segment. “Other Costs” during the first three months of 2022 consists 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 restructuring reserves by the end of 2022 using cash generated from operations. The Company also expects to recognize future additional charges totaling approximately $2,100 in connection with previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2022. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken. Other Asset Impairments The Company recognized other asset impairment charges totaling $6,389 and $4,149 in the three months ended April 3, 2022 and April 4, 2021, respectively. The charges in the three months ended April 3, 2022 include $5,713 of impairment charges related to the Company's decision to ex it its operations in Russia, part of the Industrial Paper Packaging segment, as a result of the ongoing Russia-Ukraine conflict, and $676 of fixed asset impairments in the Company's plastics foods operatio ns, part of the Consumer Packaging segment. Other asset impairment charges in the first quarter of 2021 consisted of fixed asset impairments totaling $1,750 in the Company's plastics foods operations, part of the Consumer Packaging segment, and $2,399 in the temperature-assured packaging business, part of the All Other group of businesses. These assets were determined to be impaired as the value of their projected undiscounted cash flows was no longer sufficient to recover their carrying value. These impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s Condensed Consolidated Statements of Income.

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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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