Rationalization Charges

6 Months Ended

Jun. 30, 2024

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				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023

	(Dollars in thousands)
Dispensing and Specialty Closures	$	3,191	$	1,214	$	9,748	$	1,328
Metal Containers	2,493		1,453		6,077		5,356
Custom Containers	1,175		—		2,725		104
	$	6,859	$	2,667	$	18,550	$	6,788

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, 2023	$	33,555	$	465	$	—	$	34,020
Charged to expense	5,580		11,397		1,573		18,550
Utilized and currency translation	(9,397)		(11,697)		(1,573)		(22,667)
Balance at June 30, 2024	$	29,738	$	165	$	—	$	29,903

Rationalization reserves as of June 30, 2024 were recorded in our Condensed Consolidated Balance Sheet as accrued liabilities of $3.8 million and other liabilities of $26.1 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 $5.1 million and $7.9 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 $0.8 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 $2.6 million annually through 2040.