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Restructuring and Asset Impairments
 9 Months Ended
Oct. 01, 2023
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 more cost-effective means and structures 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, nature, 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 EndedNine Months Ended
October 1, 2023October 2, 2022October 1, 2023October 2, 2022
Restructuring and restructuring-related asset impairment charges$18,110 $20,652 $52,981 $33,262 
Other asset impairments— — — 10,095 
Restructuring/Asset impairment charges$18,110 $20,652 $52,981 $43,357 
The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred:
Three Months EndedNine Months Ended
October 1, 2023October 2, 2022October 1, 2023October 2, 2022
Severance and termination benefits$9,736 $9,265 $19,370 $13,578 
Asset impairments6,123 3,301 26,122 4,533 
Other costs2,251 8,086 7,489 15,151 
Restructuring and restructuring-related asset impairment charges$18,110 $20,652 $52,981 $33,262 
The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment:
Three Months EndedNine Months Ended
October 1, 2023October 2, 2022October 1, 2023October 2, 2022
Consumer Packaging$8,288 $4,350 $11,792 $8,529 
Industrial Paper Packaging6,430 7,674 32,961 10,029 
All Other1,766 18 5,875 (399)
Corporate1,626 8,610 2,353 15,103 
Restructuring and restructuring-related asset impairment charges$18,110 $20,652 $52,981 $33,262 
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, 2022
$14,677 $— $1,392 $16,069 
2023 charges19,370 26,122 7,489 52,981 
Cash payments(19,552)(166)(6,291)(26,009)
Asset writedowns/disposals— (25,956)— (25,956)
Foreign currency translation(81)— 9 (72)
Liability at October 1, 2023
$14,414 $— $2,599 $17,013 

“Severance and Termination Benefits” during the first nine months of 2023 includes the cost of severance for approximately 300 employees whose positions were eliminated in conjunction with the Company’s ongoing organizational effectiveness efforts and severance related to the following plant closures: paper mills in Hutchinson, Kansas and Indonesia, part of the Industrial Paper Packaging segment; a metal packaging facility and a perimeter-of-the-store facility in the United States, both part of the Consumer Packaging segment; medical plastics facilities in the United States and United Kingdom, part of the All Other group of businesses; and severance related to the closures of several smaller operations.
“Asset Impairments/Disposal of Assets” during the first nine months of 2023 consists primarily of asset impairment charges related to the closure of paper mills in Hutchinson, Kansas and Indonesia, a metal packaging facility and a perimeter-of-the-store facility in the United States, and medical plastics facilities in the United States and United Kingdom.
“Other Costs” during the first nine months of 2023 consists primarily of consulting services, costs related to the closure of the Hutchinson, Kansas paper mill, and the cost of earlier 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 2023 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 2023. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken.
Other Asset Impairments
Other asset impairment charges recognized during the nine-month period ended October 2, 2022 include net asset impairment charges totaling $9,165, resulting from the Company’s exit from its operations in Russia as a result of the ongoing Russia-Ukraine conflict. These operations consisted of two small tube and core plants in the Company’s Industrial Paper Packaging segment. The 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. Fixed asset impairments totaling $930, were recognized in the nine-month period ended October 2, 2022, in the Company’s plastics foods operations, part of the Consumer Packaging segment.
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.