RATIONALIZATION CHARGES

12 Months Ended

Dec. 31, 2021

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 for each of the years ended December 31 were as follows:


	2021		2020		2019
	(Dollars in thousands)
Dispensing and Specialty Closures	$	5,806	$	5,759	$	6,562
Metal Containers	8,873		9,905		49,425
Custom Containers	331		367		364
	$	15,010	$	16,031	$	56,351

In June 2019, we announced a footprint optimization plan for our metal containers segment, which included the closing of our metal container manufacturing facilities in Mt. Vernon, Missouri and Waupun, Wisconsin in the fourth quarter of 2019. These plant closings, in conjunction with the prior ratification of a new labor agreement at our Menomonee Falls, Wisconsin metal container manufacturing facility that provided for the withdrawal for that facility from the Central States, Southeast and Southwest Areas Pension Plan, or the Central States Pension Plan, resulted in our complete withdrawal from the Central States Pension Plan. We estimate net rationalization charges for this plan of $3.5 million for the plant closings and $62.0 million for the withdrawal from the Central States Pension Plan. We recorded total rationalization charges for this plan of $1.3 million, $4.1 million and $46.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. Rationalization charges in 2019 were largely to recognize the present value of the estimated withdrawal liability related to the Central States Pension Plan. Remaining expenses and cash expenditures for the plant closings are not expected to be significant. Remaining expenses for the accretion of interest for the withdrawal liability related to the Central States Pension Plan are expected to average approximately $1.0 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.

Rationalization charges for the year ended December 31, 2019 for the dispensing and specialty closures segment were primarily related to the announced shutdown in the first quarter of 2019 of the Torello, Spain metal closures manufacturing facility.

Activity in reserves for our rationalization plans was as follows:


	Employee Severance and Benefits		Plant Exit Costs		Non-Cash Asset Write-Down		Total
	(Dollars in thousands)
Balance as of January 1, 2019	$	130	$	1,482	$	—	$	1,612
Charged to expense	49,496		1,336		5,519		56,351
Utilized and currency translation	(6,811)		(1,920)		(5,519)		(14,250)
Balance at December 31, 2019	42,815		898		—		43,713
Charged to expense	8,525		2,296		5,210		16,031
Utilized and currency translation	(10,335)		(2,639)		(5,210)		(18,184)
Balance at December 31, 2020	41,005		555		—		41,560
Charged to expense	8,048		1,882		5,080		15,010
Utilized and currency translation	(7,963)		(2,280)		(5,080)		(15,323)
Balance at December 31, 2021	$	41,090	$	157	$	—	$	41,247

Non-cash asset write-downs were the result of comparing the carrying value of certain production related equipment to their fair value using estimated future discounted cash flows, a Level 3 fair value measurement (see Note 10 for information regarding a Level 3 fair value measurement).

Rationalization reserves as of December 31, 2021 and 2020 were recorded in our Consolidated Balance Sheets as accrued liabilities of $5.6 million and $4.5 million, respectively, and as other liabilities of $35.6 million and $37.0 million, respectively. Exclusive of the footprint optimization plan for our metal containers segment and the resulting withdrawal from the Central States Pension Plan discussed above, remaining expenses and cash expenditures for our rationalization plans are expected to be $1.5 million and $4.0 million, respectively.