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Restructuring and Asset Impairments | 9 Months Ended
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Oct. 02, 2022
Restructuring and Related Activities [Abstract] |
Restructuring and Asset Impairments | Restructuring and Asset ImpairmentsDue 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 |  | Nine Months Ended
|  | October 2, 2022 |  | October 3, 2021 |  | October 2, 2022 |  | October 3, 2021
Restructuring and restructuring-related asset impairment charges |  | $ | 20,652 |  |  | $ | 3,204 |  |  | $ | 33,262 |  |  | $ | 4,048 |
Other asset impairments |  | — |  |  | 284 |  |  | 10,095 |  |  | 4,841 |
Restructuring/Asset Impairment Charges |  | $ | 20,652 |  |  | $ | 3,488 |  |  | $ | 43,357 |  |  | $ | 8,889 |
The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred:
|  | Three Months Ended |  | Nine Months Ended
|  | October 2, 2022 |  | October 3, 2021 |  | October 2, 2022 |  | October 3, 2021
Severance and Termination Benefits |  | $ | 9,265 |  |  | $ | 3,726 |  |  | $ | 13,578 |  |  | $ | 7,592 |
Asset Impairments/(Gains from Disposal of Assets) |  | 3,301 |  |  | (1,722) |  |  | 4,533 |  |  | (8,207) |
Other Costs |  | 8,086 |  |  | 1,200 |  |  | 15,151 |  |  | 4,663 |
Restructuring and restructuring-related asset impairment charges |  | $ | 20,652 |  |  | $ | 3,204 |  |  | $ | 33,262 |  |  | $ | 4,048 |
The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment:
|  | Three Months Ended |  | Nine Months Ended
|  | October 2, 2022 |  | October 3, 2021 |  | October 2, 2022 |  | October 3, 2021
Consumer Packaging |  | $ | 4,350 |  |  | $ | 2,450 |  |  | $ | 8,529 |  |  | $ | 3,708 |
Industrial Paper Packaging |  | 7,674 |  |  | (1,888) |  |  | 10,029 |  |  | (4,827) |
All Other |  | 18 |  |  | 555 |  |  | (399) |  |  | 3,075 |
Corporate |  | 8,610 |  |  | 2,087 |  |  | 15,103 |  |  | 2,092 |
Restructuring and restructuring-related asset impairment charges |  | $ | 20,652 |  |  | $ | 3,204 |  |  | $ | 33,262 |  |  | $ | 4,048 |
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 Impairments/ Disposal of Assets |  | Other Costs |  | Total
Accrual Activity |  |  |  |
Liability at December 31, 2021 |  | $ | 10,917 |  |  | $ | — |  |  | $ | 1,873 |  |  | $ | 12,790 |
2022 charges |  | 13,578 |  |  | 4,533 |  |  | 15,151 |  |  | 33,262 |
Cash (payments)/receipts |  | (9,966) |  |  | 4,751 |  |  | (13,983) |  |  | (19,198) |
Asset writedowns/disposals |  | — |  |  | (9,284) |  |  | — |  |  | (9,284) |
Foreign currency translation |  | (229) |  |  | — |  |  | (41) |  |  | (270) |
Liability at October 2, 2022 |  | $ | 14,300 |  |  | $ | — |  |  | $ | 3,000 |  |  | $ | 17,300 |
“Severance and Termination Benefits” during the first nine months of 2022 includes the cost of severance for approximately 180 employees whose positions were eliminated in conjunction with the Company's ongoing organizational effectiveness efforts. “Asset Impairments/Disposal of Assets” during the first nine months of 2022 consists primarily of asset impairment charges related to plant closures and the shutdown of operations in the Consumer Packaging and Industrial Paper Packaging segments. These charges were partially offset by gains from the sale of previously impaired assets and closed facilities in the “All Other” group of businesses. Cash proceeds in the first nine months of 2022 relate to the sales of these assets and facilities 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 nine 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 $8,200 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 $10,095 in the nine-month period ended October 2, 2022. As a result of the Company exiting its operations in Russia, consisting of two small tube and core plants in the Industrial Paper Packaging segment, other asset impairment charges of $9,165 were recognized in the nine-month period ended October 2, 2022. These charges include $3,747 of cu mulative translation adjustment losses that were reclassified from accumulated other comprehensive income upon completion of the Company's exit from Russia on July 1, 2022. Total other asset impairment charges in the nine-month period ended October 2, 2022 also include $930 of fixed asset impairments in the Company's plastics foods operations, part of the Consumer Packaging segment. 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 $284 and $4,841 in the three- and nine-month periods ended October 3, 2021, respectively. The year-to-date charges consist of fixed asset impairments totaling $2,442 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” 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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