Facility Consolidation and Other Costs

12 Months Ended

Dec. 31, 2014

Restructuring and Related Activities [Abstract]

Facility Consolidation and Other Costs

FACILITY CONSOLIDATION AND OTHER COSTS

2011 Program

During the fourth quarter of 2011, the Company initiated a facility consolidation and other costs program (“2011 Program”) to improve efficiencies and reduce fixed costs.  As a part of this program, the Company announced the closure of five facilities. As of December 31, 2013, manufacturing operations had ceased at all of these manufacturing facilities.  Most of the production from these five facilities has been transferred to other facilities.  The total 2011 Program costs were $97.2 million, including $33.4 million in employee costs, $34.7 million in fixed asset accelerated depreciation and write-downs, and $29.1 million in other facility consolidation costs.  These amounts exclude any potential gain to be recognized on the sale of property. The 2011 Program costs by reportable segment follow:

(in millions)	U.S. Packaging		Global Packaging		Corporate		Total Facility Consolidation and Other Costs
2011 net expense accrued	$	26.3	$	8.6	$	0.8	$	35.7
2012 net expense accrued	29.4		5.0		—		34.4
2013 net expense accrued	27.1		—		—		27.1
Expense incurred through December 31, 2013	$	82.8	$	13.6	$	0.8	$	97.2

2012 Program

During the second quarter of 2012, the Company expanded its facility consolidation and other costs program (“2012 Program”) to further improve efficiencies and reduce costs within its U.S. and Global Packaging segments.  As a part of this program, the Company announced the closure of an additional four production locations, including three facilities outside of the U.S., and the relocation of the majority of the production to other facilities. As of December 31, 2013, manufacturing operations had ceased at all of these manufacturing facilities.  The total 2012 Program costs of $52.6 million included $21.9 million in employee-related costs, $16.5 million in fixed asset accelerated depreciation and write-downs, and $14.2 million in other facility consolidation costs.  The 2012 Program costs by reportable segment follow: 

(in millions)	U.S. Packaging		Global Packaging		Total Facility Consolidation and Other Costs
2012 net expense accrued	$	12.7	$	21.6	$	34.3
2013 net expense accrued	17.9		0.4		18.3
Expense incurred through December 31, 2013	$	30.6	$	22.0	$	52.6

       Cash payments for these facility consolidation programs in 2013 and 2012 totaled $51.6 million and $35.2 million, respectively.  Cash payments in 2013 were net of proceeds of $9.8 million received for the sale of property and equipment. Cash payments in 2014 were minimal, and exclude the impact of proceeds on sale of property. The costs related to facility consolidation activities have been recorded on the consolidated statement of income as facility consolidation and other costs.