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Restructuring and Asset Impairments
 6 Months Ended
Jul. 03, 2022
Restructuring and Related Activities [Abstract]  
Restructuring and Asset Impairments Restructuring and Asset Impairments
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/(income), net of adjustments, recognized during the periods presented:
Three Months EndedSix Months Ended
July 3, 2022July 4, 2021July 3, 2022July 4, 2021
Restructuring and restructuring-related asset impairment charges/(income)$6,857 $(1,853)$12,610 $844 
Other asset impairments3,706 408 10,095 4,557 
Restructuring/Asset Impairment Charges/(Income)$10,563 $(1,445)$22,705 $5,401 

The table below sets forth restructuring and restructuring-related asset impairment charges/(income) by type incurred:
Three Months EndedSix Months Ended
July 3, 2022July 4, 2021July 3, 2022July 4, 2021
Severance and Termination Benefits$2,214 $2,438 $4,313 $3,866 
Asset Impairments/(Gains from Disposal of Assets)787 (5,621)1,232 (6,485)
Other Costs3,856 1,330 7,065 3,463 
Restructuring and restructuring-related asset impairment charges/(income)$6,857 $(1,853)$12,610 $844 

The table below sets forth restructuring and restructuring-related asset impairment charges/(income) by reportable segment:
Three Months EndedSix Months Ended
July 3, 2022July 4, 2021July 3, 2022July 4, 2021
Consumer Packaging$2,544 $173 $4,179 $1,258 
Industrial Paper Packaging1,007 (4,372)2,355 (2,939)
All Other(495)2,355 (417)2,520 
Corporate3,801 (9)6,493 5 
Restructuring and restructuring-related asset impairment charges/(income)$6,857 $(1,853)$12,610 $844 

Restructuring and restructuring-related asset impairment charges/(income) are included in “Restructuring/Asset impairment charges/(income)” 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
Impairments/
Disposal
of Assets		Other
Costs		Total
Accrual Activity
Liability at December 31, 2021$10,917 $— $1,873 $12,790 
2022 charges4,313 1,232 7,065 12,610 
Cash (payments)/receipts(7,024)4,076 (7,163)(10,111)
Asset write downs/disposals— (5,308)— (5,308)
Foreign currency translation(83)— (38)(121)
Liability at July 3, 2022
$8,123 $— $1,737 $9,860 

"Severance and Termination Benefits" during the first six months of 2022 includes the cost of severance for approximately 150 employees whose positions were eliminated in conjunction with the Company's ongoing organizational effectiveness efforts.
"Asset Impairments/Disposal of Assets" during the first six months of 2022 consists primarily of asset impairment charges related to plant closures in the Consumer Packaging and Industrial Paper Packaging segments, partially offset by a gain from the sale of a previously closed facility in our "All Other" group of businesses. Cash proceeds in the first six months of 2022 relate to the sale of this facility as well as the partial sale of a previously closed operation in Canada, part of the Industrial Paper Packaging segment.
“Other Costs” during the first six months of 2022 consists primarily of consulting services and 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 $2,300 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 $3,706 and $10,095 in the three and six months ended July 3, 2022, respectively.
The charges in the three and six months ended July 3, 2022 include net asset impairment charges totaling $3,452 and $9,165, respectively, resulting from the Company's decision in the first quarter of 2022 to exit its operations in Russia, consisting of two small tube and core plants in our Industrial Paper Packaging segment, as a result of the ongoing Russia-Ukraine conflict. These charges include $3,747 of cumulative translation adjustment losses that were reclassified from accumulated other comprehensive income upon completion of the Company's exit from Russia on July 1, 2022. The charges also include $254 and $930 of fixed asset impairments in the Company's plastics foods operations, part of the Consumer Packaging segment, in the three and six months ended July 3, 2022, respectively. 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.
The Company recognized other asset impairment charges totaling $408 and $4,557 in the three and six months ended July 4, 2021, respectively. The year-to-date charges consist of fixed asset impairments totaling $2,158 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. The assets were impaired as the value of their projected undiscounted cash flows was determined to no longer be sufficient to recover their carrying value.
These impairment charges are included in “Restructuring/Asset impairment charges/(income)” in the Company’s Condensed Consolidated Statements of Income.