v3.26.1
Impairment and Restructuring Costs
 6 Months Ended
Jun. 30, 2026
Restructuring Costs and Asset Impairment Charges [Abstract]  
Impairment and Restructuring Costs 4.  Impairment and Restructuring Costs
During 2026, the Company implemented a number of restructuring actions focused on reducing costs and prioritizing capital
allocation to enhance future performance, including certain facility and asset rationalizations. These actions are not individually
material.
During 2025, the Company implemented a number of restructuring actions, including the April 2025 announcement of (i) the
permanent closure of the coated recycled board mill in St. Paul, Minnesota, U.S., (ii) discontinued production at our containerboard
mill in Forney, Texas, U.S., and (iii) the closure of two converting facilities in Germany (the “April 2025 Announced Closures”).
The components of impairment and restructuring costs are as follows for the three and six months ended June 30, 2026 and 2025:
Three months ended June 30,
Six months ended June 30,
 
2026
2025
2026
2025
Impairment charges
$72
$184
$107
$184
Restructuring costs
47
96
66
111
Impairment and restructuring costs
$119
$280
$173
$295
Impairment Charges
The components of impairment charges for the three and six months ended June 30, 2026 and 2025 are as follows:
Three months ended June 30,
Six months ended June 30,
 
2026
2025
2026
2025
Impairment of property, plant and equipment
$57
$167
$77
$167
Impairment of other assets
15
17
30
17
Total impairment charges
$72
$184
$107
$184
These impairment charges are recognized in the Condensed Consolidated Statements of Operations caption “Impairment and
restructuring costs”.
In the three and six months ended June 30, 2026, the Company recorded asset impairment charges of $72 million and $107 million,
respectively. The largest charges related to closing and consolidating paper mill capacity in Europe, MEA and APAC.
In the three and six months ended June 30, 2025, the Company recorded $184 million of asset impairment charges primarily related to
the April 2025 Announced Closures.
The fair value of the property, plant and equipment assets was determined based on their estimated selling price in an orderly
transaction between market participants at the measurement date.
The segmental split of the impairment charges recognized for property, plant and equipment for the three and six months ended
June 30, 2026 and 2025 is as follows:
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
North America
$3
$156
$23
$156
Europe, MEA and APAC
54
11
54
11
Total impairment charges recognized for property, plant
and equipment
$57
$167
$77
$167
Restructuring Costs
The segmental split of the restructuring costs shown in the table above for the three and six months ended June 30, 2026 and 2025 is
as follows:
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
North America
$17
$43
$36
$54
Europe, MEA and APAC
31
50
31
54
LATAM
(1)
3
(1)
3
Total restructuring costs
$47
$96
$66
$111
The table below sets forth restructuring costs by type incurred:
Three months ended June 30,
Six months ended June 30,
 
2026
2025
2026
2025
Severance charges
$33
$62
$43
$71
Other costs
14
34
23
40
Total restructuring costs
$47
$96
$66
$111
These restructuring costs are recognized in the Condensed Consolidated Statements of Operations caption “Impairment and
restructuring costs”.
As of June 30, 2026, the Company expects any future additional charges related to restructuring initiatives implemented through that
date to be immaterial.
As of June 30, 2026 and December 31, 2025, the Company had accrued liabilities of $76 million and $78 million, respectively, related
to severance charges and other costs associated with the restructuring initiatives. These are included in "Other current liabilities" in the
Company's Condensed Consolidated Balance Sheets.
The remaining obligations as at June 30, 2026 are expected to be paid within 12 months of the reporting date.