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Restructuring and Asset Impairments | 6 Months Ended
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Jun. 29, 2025
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 significant changes in its markets. As such, plant closures in connection with footprint rationalization and headcount reductions are an important component of the Company’s cost control initiatives. 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 Ended |  | Six Months Ended
|  | June 29, 2025 |  | June 30, 2024 |  | June 29, 2025 |  | June 30, 2024
Restructuring and restructuring-related asset impairment charges |  | $ | 9,752 |  |  | $ | 17,963 |  |  | $ | 23,333 |  |  | $ | 48,973 |
Other asset impairments |  | — |  |  | — |  |  | — |  |  | — |
Restructuring/Asset impairment charges |  | $ | 9,752 |  |  | $ | 17,963 |  |  | $ | 23,333 |  |  | $ | 48,973 |
The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred:
|  | Three Months Ended |  | Six Months Ended
|  | June 29, 2025 |  | June 30, 2024 |  | June 29, 2025 |  | June 30, 2024
Severance and Termination Benefits |  | $ | 6,367 |  |  | $ | 5,480 |  |  | $ | 13,365 |  |  | $ | 23,271 |
Asset Impairment/Disposal of Assets |  | 1,381 |  |  | 10,898 |  |  | 6,482 |  |  | 19,020 |
Other Costs |  | 2,004 |  |  | 1,585 |  |  | 3,486 |  |  | 6,682 |
Total restructuring and restructuring-related asset impairment charges |  | $ | 9,752 |  |  | $ | 17,963 |  |  | $ | 23,333 |  |  | $ | 48,973 |
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 Ended |  | Six Months Ended |  |  |  |
|  | June 29, 2025 |  | June 30, 2024 |  | June 29, 2025 |  | June 30, 2024 |  |  |  |
Consumer Packaging |  | $ | 1,509 |  |  | $ | 9,876 |  |  | $ | 2,738 |  |  | $ | 14,193 |  |  |  |  |
Industrial Paper Packaging |  | 8,234 |  |  | 7,737 |  |  | 20,769 |  |  | 30,340 |  |  |  |  |
All Other |  | 16 |  |  | 214 |  |  | (16) |  |  | 1,362 |  |  |  |  |
Corporate |  | (7) |  |  | 136 |  |  | (158) |  |  | 3,078 |  |  |  |  |
Total restructuring and restructuring-related asset impairment charges |  | $ | 9,752 |  |  | $ | 17,963 |  |  | $ | 23,333 |  |  | $ | 48,973 |  |  |  |  |
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, 2024 |  | $ | 24,034 |  |  | $ | — |  |  | $ | 909 |  |  | $ | 24,943 |
2025 charges |  | 13,365 |  |  | 6,482 |  |  | 3,486 |  |  | 23,333 |
Cash (payments)/receipts |  | (19,370) |  |  | 88 |  |  | (2,872) |  |  | (22,154) |
Asset write downs/disposals |  | — |  |  | (6,570) |  |  | — |  |  | (6,570) |
Foreign currency translation |  | 903 |  |  | — |  |  | 318 |  |  | 1,221 |
Liability at June 29, 2025 |  | $ | 18,932 |  |  | $ | — |  |  | $ | 1,841 |  |  | $ | 20,773 |
“Severance and Termination Benefits” during the six-month period ended June 29, 2025 includes the cost of severance for approximately 120 employees whose positions were eliminated in conjunction with the Company’s ongoing organizational effectiveness efforts, as well as severance related to the closures of cone facilities in China and Mexico, and partitions facilities in Scarborough, Maine and Santa Fe Springs, California, all part of the Industrial Paper Packaging segment, and the closure of a metal can facility in Spain, part of the Consumer Packaging segment. “Asset Impairment/Disposal of Assets” during the six-month period ended June 29, 2025 consists primarily of asset write-offs related to the closures of the cone facilities in China and Mexico and the partitions facilities in Maine and California, all part of the Industrial Paper Packaging segment. “Other Costs” during the six-month period ended June 29, 2025 consists primarily of equipment removal, utilities, plant security, property taxes, insurance and environmental remediation costs related to the prior year’s closure of the Company’s paper mill in Sumner, Washington, legal costs related to the closure of the metal can facility in Spain, 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 2025 using cash generated from operations. The Company also expects to recognize future additional charges totaling approximately $3,800 in connection with previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2025. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken.

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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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