RESTRUCTURING PROGRAMS

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

RESTRUCTURING PROGRAMS

Periodically, the Company may initiate a restructuring program to achieve its long-term profit growth targets. Initiatives undertaken are currently expected to recover cash implementation costs within a 3 to 5-year period subsequent to completion. Completion (or as each major stage is completed in the case of multi-year programs), is when the project begins to deliver cash savings and/or reduced depreciation.

During 2021, the Company announced a reconfiguration of the North America reportable segment supply chain network, designed to drive increased productivity. The project is expected to be substantially completed by early 2024, with related productivity improvements commencing in 2023. The overall project is expected to result in cumulative pretax charges of approximately $45 million, which include employee-related costs of $4 million, other cash costs of $21 million and non-cash costs, primarily consisting of accelerated depreciation and asset write-off's, of $20 million. Charges incurred related to this restructuring program were approximately $6 million and $5 million during 2022 and 2021, respectively. These charges primarily related to severance, accelerated depreciation and asset write-offs, and were recorded in COGS. Total program costs to date for the life of this project was $11 million as of December 31, 2022.

In addition to the project discussed above, the Company incurred restructuring costs in each of its reportable segments related to various reorganization and simplification initiatives and supply chain optimization projects. The Company recorded total restructuring charges of $11 million, $27 million and $29 million across all restructuring programs during 2022, 2021 and 2020, respectively, primarily related to employee severance charges, accelerated depreciation and asset write-offs.

At December 31, 2022 total project reserves were $11 million, related to severance payments, of which a substantial portion will be paid in 2023.