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Restructuring and Asset Impairments
 9 Months Ended
Sep. 29, 2024
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 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
September 29, 2024October 1, 2023September 29, 2024October 1, 2023
Restructuring and restructuring-related asset impairment charges$8,190 $18,110 $59,058 $52,981 
Other asset impairments— — — — 
Restructuring/Asset impairment charges$8,190 $18,110 $59,058 $52,981 
The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred:
Three Months EndedNine Months Ended
September 29, 2024October 1, 2023September 29, 2024October 1, 2023
Severance and termination benefits$2,649 $9,736 $26,742 $19,370 
Asset impairments2,501 6,123 22,844 26,122 
Other costs3,040 2,251 9,472 7,489 
Restructuring and restructuring-related asset impairment charges$8,190 $18,110 $59,058 $52,981 
The table below sets forth restructuring and restructuring-related asset impairment charges attributable to each reportable segment, the All Other group of businesses, and Corporate-related activity:
Three Months EndedNine Months Ended
September 29, 2024October 1, 2023September 29, 2024October 1, 2023
Consumer Packaging$4,509 $9,784 $20,597 $16,479 
Industrial Paper Packaging3,798 6,430 34,138 32,961 
All Other— 270 1,362 1,188 
Corporate(117)1,626 2,961 2,353 
Restructuring and restructuring-related asset impairment charges$8,190 $18,110 $59,058 $52,981 
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” in 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, 2023
$14,315 $— $1,638 $15,953 
2024 charges26,742 22,844 9,472 59,058 
Cash (payments)/receipts(23,893)4,221 (8,729)(28,401)
Asset writedowns/disposals— (27,065)— (27,065)
Foreign currency translation191 — (16)175 
Liability at September 29, 2024
$17,355 $— $2,365 $19,720 
“Severance and termination benefits” during the first nine months of 2024 includes the cost of severance for approximately 220 employees whose positions were eliminated in conjunction with the Company’s ongoing organizational effectiveness efforts, including the relocation of certain facilities in Greece and Germany, and severance related to the closures of paper mills in Sumner, Washington (the “Sumner Mill”) and Kilkis, Greece (the “Kilkis Mill”), the closures of two small industrial converted products facilities in China, and the closure of an industrial converted products facility in Mississauga, Canada, all part of the Industrial Paper Packaging segment.
“Asset impairments” during the first nine months of 2024 consists primarily of asset impairment charges related to the closures of the Sumner Mill and the Kilkis Mill, both part of the Industrial Paper Packaging segment, and the exit of a small metal canning lid business within Metal Packaging, part of the Consumer Packaging segment.
“Other costs” during the first nine months of 2024 consists primarily of equipment removal, utilities, plant security, property taxes, insurance and environmental remediation costs related to the closure of the Sumner Mill, and ongoing facility carrying costs of previously announced plant closures.
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 $3,700 in connection with 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.