EXIT ACTIVITIES

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

In March 2022, the Company announced its decision to close the Norwalk, Ohio packaging facility and closed the facility in September 2022. The Company has incurred charges associated with this exit activity for post-employment benefits, retention bonuses and incentives, which are included in the Severance Costs and Other line item in the table below for the three months ended March 31, 2022.

On February 7, 2023, the Company announced its plan to invest approximately $1 billion in a new CRB mill in Waco, Texas. In conjunction with this project, the Company expects to close three of its smaller CRB mills in order to strategically expand capacity while lowering costs. The costs associated with these exit activities are included in the table below for the three months ended March 31, 2023.

During the three months ended March 31, 2023 and 2022, the Company recorded $13 million and $11 million of exit costs, respectively, associated with these restructurings.

The following table summarizes the costs incurred during the three months ended March 31, 2023 and 2022 related to these restructurings:


		Three Months Ended March 31,
In millions	Location in Statement of Operations	2023		2022
Severance Costs and Other(a)	Business Combinations and Shutdown and Other Special Charges, Net	$	8	$	7
Asset Write-Offs and Start-Up Costs(b)	Business Combinations and Shutdown and Other Special Charges, Net	3		—
Accelerated Depreciation	Cost of Sales	2		4

Total		$	13	$	11

(a) Costs incurred include activities for post-employment benefits, retention bonuses, incentives and professional services (see "Note 1 - Business Combinations, Shutdown and Other Special Charges and Exit Activities, net").

(b) Costs incurred include non-cash write-offs for items such as machinery, supplies and inventory.

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


In millions	Total
Balance at December 31, 2022	$	1
Costs Incurred	8
Payments	—
Adjustments(a)	(1)
Balance at March 31, 2023	$	8

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

Due to the expected closures of the three CRB mills, the Company incurred charges for post-employment benefits, retention bonuses and incentives of $8 million, and accelerated depreciation and inventory and asset write-offs of $2 million through March 31, 2023. The Company expects to incur total charges associated with these exit activities for post-employment benefits, retention bonuses and incentives in the range of $20 million to $25 million and for accelerated depreciation and inventory and asset write-offs in the range of $40 million to $45 million through 2026.

Additionally, the Company has incurred start-up charges for the new CRB paper machine of $1 million through March 31, 2023. The Company expects to incur total start-up charges of approximately $25 million to $30 million for the new CRB paper machine through 2026.