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Restructuring and asset impairment | 12 Months Ended
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Dec. 31, 2023
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 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:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Restructuring and restructuring-related asset impairment charges | $ | 56,933 |  |  | $ | 46,815 |  |  | $ | 9,176 |
Other asset impairments | — |  |  | 10,095 |  |  | 5,034 |
Restructuring/Asset impairment charges | $ | 56,933 |  |  | $ | 56,910 |  |  | $ | 14,210 |
The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Severance and Termination Benefits | $ | 26,631 |  |  | $ | 17,983 |  |  | $ | 13,097 |
Asset Impairment/Disposal of Assets | 19,603 |  |  | 9,442 |  |  | (9,116) |
Other Costs | 10,699 |  |  | 19,390 |  |  | 5,195 |
Total restructuring and restructuring-related asset impairment charges | $ | 56,933 |  |  | $ | 46,815 |  |  | $ | 9,176 |
The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Consumer Packaging | $ | 8,059 |  |  | $ | 12,433 |  |  | $ | 3,427 |
Industrial Paper Packaging | 38,754 |  |  | 16,019 |  |  | (1,642) |
All Other | 7,623 |  |  | (166) |  |  | 2,969 |
Corporate | 2,497 |  |  | 18,529 |  |  | 4,422 |
Total restructuring and restructuring-related asset impairment charges | $ | 56,933 |  |  | $ | 46,815 |  |  | $ | 9,176 |
“Restructuring and restructuring-related asset impairment charges” and “Other asset impairments” are included in “Restructuring/Asset impairment charges” in the 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 Consolidated Balance Sheets:
Accrual Activity | Severance and Termination Benefits |  | Asset Impairment/ Disposal of Assets |  | Other Costs |  | Total
Liability, December 31, 2021 | $ | 10,917 |  |  | $ | — |  |  | $ | 1,873 |  |  | $ | 12,790 |
2022 charges | 17,983 |  |  | 9,442 |  |  | 19,390 |  |  | 46,815 |
Cash (payments)/receipts | (14,024) |  |  | 7,138 |  |  | (19,836) |  |  | (26,722) |
Asset write downs/disposals | — |  |  | (16,580) |  |  | — |  |  | (16,580) |
Foreign currency translation | (199) |  |  | — |  |  | (35) |  |  | (234) |
Liability, December 31, 2022 | $ | 14,677 |  |  | $ | — |  |  | $ | 1,392 |  |  | $ | 16,069 |
2023 charges | 26,631 |  |  | 19,603 |  |  | 10,699 |  |  | 56,933 |
Cash (payments)/receipts | (27,000) |  |  | 6,842 |  |  | (10,522) |  |  | (30,680) |
Asset write downs/disposals | — |  |  | (26,445) |  |  | — |  |  | (26,445) |
Foreign currency translation | 7 |  |  | — |  |  | 69 |  |  | 76 |
Liability, December 31, 2023 | $ | 14,315 |  |  | $ | — |  |  | $ | 1,638 |  |  | $ | 15,953 |
“Severance and Termination Benefits” in 2023 include the cost of severance for approximately 300 employees whose positions were eliminated in conjunction with the Company’s ongoing organizational effectiveness efforts a nd 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. “Severance and Termination Benefits” in 2022 include the cost of severance provided to employees terminated as the result of various plant closures, and for approximately 180 employees whose positions were eliminated in conjunction with the Company's ongoing organizational effectiveness efforts. “Asset Impairment/Disposal of Assets” in 2023 consist primarily of asset impairment charges related to the closure of a paper mill in Hutchinson, Kansas and a metal packaging facility in the United States, and medical plastics facilities in the United States and United Kingdom. These charges were partially offset by gains from the sale of previously impaired assets and a closed perimeter-of-the-store facility, part of the Consumer Packaging segment. “Asset Impairment/Disposal of Assets” in 2022 consist primarily of asset impairment charges related to plant closures in the Industrial Paper Packaging and Consumer Packaging segments, including asset impairment charges of $3,620 related to Project Horizon. These charges were partially offset by gains from the sale of previously impaired assets and closed facilities in the Consumer Packaging segment and the “All Other” group of businesses. Cash proceeds in 2022 relate to the sales of these assets and facilities, including the partial sale of a previously closed paper mill in Canada, part of the Industrial Paper Packaging segment. “Other Costs” in 2023 consist primarily of costs related to plant closures including equipment removal, utilities, plant security, property taxes and insurance. In 2022, “Other Costs” consist 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 2024 using cash generated from operations. The Company also expects to recognize future additional charges totaling approximately $2,300 in connection with ongoing consulting services and previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2024. 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 for the year ended December 31, 2022. As a result of exiting our 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 for the year ended December 31, 2022. 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. Total other asset impairment charges for the year ended December 31, 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. These impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s 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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