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RATIONALIZATION CHARGES | 12 Months Ended
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Dec. 31, 2024
Restructuring and Related Activities [Abstract] |
RATIONALIZATION CHARGES | RATIONALIZATION C HARGES We continually evaluate cost reduction opportunities across each of our segments, including rationalizations of our existing facilities through plant closings and downsizings. We use a disciplined approach to identify opportunities that generate attractive cash returns. Rationalization charges by segment for each of the years ended December 31 were as follows:
| 2024 |  | 2023 |  | 2022
| (Dollars in thousands)
Dispensing and Specialty Closures | $ | 23,055 |  |  | $ | 11,285 |  |  | $ | 944 |
Metal Containers | 14,469 |  |  | (7,849) |  |  | 73,137 |
Custom Containers | 21,957 |  |  | 4,976 |  |  | — |
| $ | 59,481 |  |  | $ | 8,412 |  |  | $ | 74,081 |
Rationalization charges of $59.5 million for the year ended December 31, 2024 primarily related to the comprehensive cost reduction initiative we announced in late 2023 to achieve cost savings over the following two years from footprint rationalizations and other cost reduction actions in all of our segments. As part of this initiative, we have already closed three dispensing and specialty closures manufacturing facilities, two metal container manufacturing facilities and one custom container manufacturing facility as of December 31, 2024, relocating volumes from such facilities to other facilities, and we have announced the closing of an additional custom container manufacturing facility in 2025. In addition, as part of this initiative we have taken, and are continuing to take, actions to optimize production at several other manufacturing facilities across our network. In the fourth quarter of 2022, we recognized a rationalization charge of $73.8 million in the metal containers segment related to the write-off of net assets to service the Russian market. Our two metal container manufacturing facilities in Russia were closed at the beginning of 2023. In the fourth quarter of 2023, we recorded a rationalization credit of $17.7 million in the metal containers segment related to a loss recovery from Oesterreichische Kontrollbank Aktiengesellschaft, an Austrian entity that provides financial services including credit insurance, in respect of such net assets. In 2019, we withdrew from the Central States, Southeast and Southwest Areas Pension Plan, or the Central States Pension Plan, and estimated total rationalization expenses and cash expenditures from such withdrawal of $62.0 million at that time. In the fourth quarter of 2022, we finalized the calculation of the withdrawal liability with the Central States Pension Plan and revised the total expected costs of the withdrawal liability as of the withdrawal date to be $51.1 million, with expected total future cash expenditures of $41.9 million. Accordingly, the fourth quarter of 2022 includes a rationalization credit of $8.5 million in the metal containers segment for the adjustment to the withdrawal liability for the Central States Pension Plan as finalized. Remaining expenses related to the accretion of interest for the withdrawal liability for the Central States Pension Plan are expected to be approximately $0.9 million per year to be recognized annually through 2040, and remaining cash expenditures for the withdrawal liability related to the Central States Pension Plan are expected to be approximately $2.6 million per year through 2040. Activity in reserves for our rationalization plans was as follows:
| Employee Severance and Benefits |  |  |  | Plant Exit Costs |  | Non-Cash Asset Write-Down |  | Total
| (Dollars in thousands)
Balance as of January 1, 2022 | $ | 41,090 |  |  |  |  | $ | 157 |  |  | $ | — |  |  | $ | 41,247 |
Charged to expense | (1,657) |  |  |  |  | 1,205 |  |  | 74,533 |  |  | 74,081 |
Utilized and currency translation | (7,792) |  |  |  |  | (1,203) |  |  | (74,533) |  |  | (83,528) |
Balance at December 31, 2022 | 31,641 |  |  |  |  | 159 |  |  | — |  |  | 31,800 |
Charged to expense | 12,314 |  |  |  |  | 6,175 |  |  | (10,077) |  |  | 8,412 |
Utilized and currency translation | (10,400) |  |  |  |  | (5,869) |  |  | 10,077 |  |  | (6,192) |
Balance at December 31, 2023 | 33,555 |  |  |  |  | 465 |  |  | — |  |  | 34,020 |
Charged to expense | 8,972 |  |  |  |  | 20,607 |  |  | 29,902 |  |  | 59,481 |
Utilized and currency translation | (13,209) |  |  |  |  | (21,072) |  |  | (29,902) |  |  | (64,183) |
Balance at December 31, 2024 | $ | 29,318 |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 29,318 |
Non-cash asset write-downs were the result of comparing the carrying value of certain production related equipment to their fair value using estimated future discounted cash flows, a Level 3 fair value measurement (see Note 10 for information regarding a Level 3 fair value measurement). Non-cash asset write-downs for the year ended December 31, 2023 were net of recovered losses of $17.7 million discussed above. Rationalization reserves as of December 31, 2024 and 2023 were recorded in our Consolidated Balance Sheets as accrued liabilities of $3.8 million and $7.3 million, respectively, and as other liabilities of $25.5 million and $26.7 million, respectively. Excluding the impact of our withdrawal from the Central States Pension Plan discussed above, remaining expenses and cash expenditures for our rationalization plans are expected to be $8.1 million and $10.9 million, respectively.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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