Plant shutdowns, asset impairments, restructurings, sales of assets and other items are shown in the net sales and operating profit by segment table in Note 11 and are also included in “Asset impairments and costs associated with exit and disposal activities, net of adjustments” in the consolidated statements of income, unless otherwise noted below.

Plant shutdowns, asset impairments, restructurings and other items in the first quarter of 2019 include:


•	Pretax charges of $0.9 million for professional fees associated with the implementation of new accounting guidance and analysis and revisions to the Company’s internal control over financial reporting (included in “Selling, R&D and general expenses” in the condensed consolidated statements of income);


•	Pretax charges of $0.4 million for the write-off of a Personal Care production line at PE Films’ Guangzhou, China facility;


•	Pretax charges of $0.4 million for severance and other employee-related costs associated with restructurings in PE Films;


•	Pretax charges of $0.3 million related to estimated excess costs associated with the ramp-up of new product offerings and additional expenses related to strategic capacity expansion projects by PE Films (included in “Cost of goods sold” in the consolidated statements of income); and


•	Pretax charges of $0.2 million associated with the shutdown of PE Films’ manufacturing facility in Shanghai, China, which consists of other facility-related costs.

Plant shutdowns, asset impairments, restructurings and other items in the first three months of 2018 include:


•	Pretax charges of $1.0 million related to estimated excess costs associated with the ramp-up of new product offerings and additional expenses related to strategic capacity expansion projects by PE Films (included in “Cost of goods sold” in the consolidated statements of income);


•	Pretax charges of $0.3 million for professional fees associated with the Terphane Limitada worthless stock deduction, the impairment of assets of Flexible Packaging Films and determining the effect of the new U.S. federal income tax law (included in “Selling, general and administrative expenses” in the consolidated statements of income); and


•	Pretax charges of $0.1 million for severance and other employee-related costs associated with restructurings in PE Films and Aluminum Extrusions.

Results on the Company’s investment in kaléo, which is accounted for under the fair value method, in the first quarter of 2019 include a gain of $17.1 million ($14.3 million after taxes), which included a $17.6 million dividend declared on March 29, 2019, compared to a gain of $8.2 million ($6.4 million after taxes) in the first quarter of 2018 (included in “Other income (expense), net” in the consolidated statements of income). See Note 7 for additional information on investments.

In June 2018, the Company announced plans to close its facility in Shanghai, China, which primarily produced plastic films used as components for personal care products (“Shanghai transition”). Production ceased at this plant during the fourth quarter of 2018. The Company expects to recognize costs associated with exit and disposal activities of $5.0 million from June 2018 to completion, comprised of: (i) retention, severance and related costs ($2.9 million), (ii) customer-related costs ($0.5 million), and (iii) legal, asset disposal and other cash costs ($1.6 million). In addition, the Company expects non-cash asset write-offs and accelerated depreciation of $0.6 million. Net annual cash savings from consolidating operations of $1.7 million is expected. Proceeds from expected property disposals are uncertain. The Company anticipates that these activities, including property disposals, will be completed by the end of 2019.

Total expenses associated with the Shanghai transition were $0.2 million in the three months ended March 31, 2019 and $3.5 million since project inception. Cash expenditures were $0.2 million in the three months ended March 31, 2019 and $2.7 million since project inception.

A reconciliation of the beginning and ending balances of accrued expenses associated with exit and disposal activities and charges associated with asset impairments and reported as “Asset impairments and costs associated with exit and disposal activities, net of adjustments” in the consolidated statements of income for the three months ended March 31, 2019 is as follows:



(In thousands)	Severance ^(a)			Asset Impairments			Other ^(b)			Total
Balance at January 1, 2019	$	616		$	—		$	160		$	776
Changes in 2019:
Charges	455			404			197			1,056
Cash payments	(242		)	—			(226		)	(468		)
Charges against assets	—			(404		)	—			(404		)
Reversed to income				—						—
Balance at March 31, 2019	$	829		$	—		$	131		$	960
(a) Severance cash spent includes severance payments associated with the Shanghai transition. (b) Other primarily includes other restructuring costs associated with Aluminum Extrusions.