Exit activities

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

EXIT ACTIVITIES

During 2019, the Company announced its plans to invest approximately $600 million in a new CRB paper machine in Kalamazoo, Michigan. In conjunction with the completion of this project, the Company currently expects to close two of its smaller CRB Mills in 2022 in order to remain capacity neutral.

In March 2020, the Company made the decision to close the White Pigeon, Michigan CRB mill and shut down the PM1 containerboard machine in West Monroe, Louisiana. During the second quarter of 2020, the Company closed the White Pigeon, Michigan CRB mill and shut down the PM1 containerboard machine.

In June 2020, the Company made the decision to close certain converting facilities that were acquired from Greif. The Burlington, North Carolina converting facility and the Los Angeles, California converting facility were closed during the third quarter of 2020.

The Company accounts for the costs associated with these closures in accordance with ASC 360, Impairment or Disposal of Long-Lived Assets ("ASC 360"), ASC 420, Exit or Disposal Costs Obligations ("ASC 420") and ASC 712 Compensation-Nonretirement Post Employment Benefits ("ASC 712"). During the nine months ended September 30, 2020, the Company recorded $42.1 million of exit costs. The Company did not record any exit costs during the nine months ended September 30, 2019. Other costs associated with the start up of the new CRB paper machine will be recorded in the period in which they are incurred. These costs are included in the Corporate and Other caption in "Note 11 - Segment Information."

The following table summarizes the costs incurred related to these restructurings:


		Three Months Ended September 30,		Nine Months Ended September 30,
In millions	Location in Statement of Operations	2020
Severance costs and other^(a)	Business Combinations and Shutdown and Other Special Charges, Net	$	1.3	$	8.3
Accelerated depreciation	Cost of Sales	4.7		20.7
Inventory and asset write-offs	Business Combinations and Shutdown and Other Special Charges, Net	3.1		13.1
Total		$	9.1	$	42.1

^(a) Costs incurred include activities for post-employment benefits, retention bonuses, incentives and professional services.

The following table summarizes the balance of accrued expenses related to restructuring:


In millions
Balance at December 31, 2019	$	7.1
Costs incurred	9.1
Payments	(4.5)
Adjustments^(a)	(0.8)
Balance at September 30, 2020	$	10.9

^(a) Adjustments related to changes in estimates of severance costs.

In conjunction with the closure of the two smaller CRB Mills in 2022, the Company currently expects to incur exit activity charges for post-employment benefits, retention bonuses and incentives in the range of $15 million to $20 million and for accelerated depreciation and inventory and asset write-offs in the range of $50 million to $60 million. Through September 30, 2020, the Company has incurred cumulative exit activity charges for post-employment benefits, retention bonuses and incentives of $11.4 million and accelerated depreciation and inventory and asset write-offs of $21.6 million.

For the closures of the White Pigeon, Michigan CRB mill and the shutdown of the PM1 containerboard machine in West Monroe, Louisiana, the Company has incurred cumulative exit activity charges for post-employment benefits of $2.3 million and accelerated depreciation and inventory and asset write-offs of $15.8 million through September 30, 2020. The Company does not expect to incur any additional significant costs charges related to these closures.

For the closure of the facilities acquired from Greif, the Company has incurred cumulative exit activity charges for post-employment benefits of $1.4 million and for accelerated amortization of operating lease assets of $3.6 million. The Company does not expect to incur any additional significant costs charges related to these closures.