Rationalization Charges

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

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 were as follows:


	Three Months Ended				Nine Months Ended
	Sept. 30, 2022		Sept. 30, 2021		Sept. 30, 2022		Sept. 30, 2021

	(Dollars in thousands)
Dispensing and Specialty Closures	$	346	$	406	$	346	$	5,704
Metal Containers	2,480		1,822		7,182		7,068
Custom Containers	(100)		87		5		254
	$	2,726	$	2,315	$	7,533	$	13,026

Activity in reserves for our rationalization plans were as follows:


	Employee Severance and Benefits		Plant Exit Costs		Non-Cash Asset Write-Down		Total
	(Dollars in thousands)
Balance at December 31, 2021	$	41,090	$	157	$	—	$	41,247
Charged to expense	5,324		348		1,861		7,533
Utilized and currency translation	(5,908)		(378)		(1,861)		(8,147)
Balance at September 30, 2022	$	40,506	$	127	$	—	$	40,633

Non-cash asset write-downs were the result of comparing the carrying value of certain production related assets to their fair value using estimated future discounted cash flows, a Level 3 fair value measurement (see Note 7 for information regarding a Level 3 fair value measurement).

Rationalization reserves as of September 30, 2022 were recorded in our Condensed Consolidated Balance Sheet as accrued liabilities of $4.4 million and other liabilities of $36.2 million. Excluding the impact of our withdrawal from the Central States, Southeast and Southwest Areas Pension Plan, or the Central States Pension Plan, in 2019, remaining expenses and cash expenditures for our rationalization plans are expected to be $3.1 million and $6.0 million, respectively. Remaining expenses for the accretion of interest for the withdrawal liability related to the Central States Pension Plan are expected to average approximately $0.9 million per year and 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 $3.1 million annually through 2040.