v3.25.2
Restructuring and Asset Impairments
 6 Months Ended
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 EndedSix Months Ended
June 29, 2025June 30, 2024June 29, 2025June 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 EndedSix Months Ended
June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Severance and Termination Benefits$6,367 $5,480 $13,365 $23,271 
Asset Impairment/Disposal of Assets1,381 10,898 6,482 19,020 
Other Costs2,004 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 EndedSix Months Ended
June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Consumer Packaging$1,509 $9,876 $2,738 $14,193 
Industrial Paper Packaging8,234 7,737 20,769 30,340 
All Other16 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 charges13,365 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 translation903 — 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.