RATIONALIZATION CHARGES

12 Months Ended

Dec. 31, 2025

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:


	2025		2024		2023
	(Dollars in thousands)
Dispensing and Specialty Closures	$	37,425	$	23,055	$	11,285
Metal Containers	17,411		14,469		(7,849)
Custom Containers	5,673		21,957		4,976
	$	60,509	$	59,481	$	8,412

Rationalization charges for the year ended December 31, 2025 included a charge of approximately $24.0 million related to the announced shutdown in the fourth quarter of 2025 of the Hannover, Germany metal closures manufacturing facility. The remainder of the rationalization charges recognized for the year ended December 31, 2025 primarily related to the comprehensive cost reduction initiative we announced in late 2023 to achieve cost savings over the following two years from footprint rationalizations and other cost reduction actions in all of our segments. As part of this initiative, we closed three dispensing and specialty closures manufacturing facilities, two metal container manufacturing facilities and two custom container manufacturing facilities, relocating volumes from such facilities to other facilities. In addition, as part of this initiative we optimized production at several other manufacturing facilities across our network.

Rationalization charges of $59.5 million for the year ended December 31, 2024 primarily related to our comprehensive cost reduction initiative that we announced in late 2023 described above.

In the fourth quarter of 2022, we recognized a rationalization charge of $73.8 million in the metal containers segment related to the write-off of net assets to service the Russian market. Our two metal container manufacturing facilities in Russia were closed at the beginning of 2023. In the fourth quarter of 2023, we recorded a rationalization credit of $17.7 million in the metal containers segment related to a loss recovery from Oesterreichische Kontrollbank Aktiengesellschaft, an Austrian entity that provides financial services including credit insurance, in respect of such net assets.

In 2019, we withdrew from the Central States, Southeast and Southwest Areas Pension Plan, or the Central States Pension Plan. As of December 31, 2025, our total future expected cash expenditures related to this withdrawal were $36.0 million. Remaining expenses related to the accretion of interest for the withdrawal liability for the Central States Pension Plan are expected to be approximately $0.8 million per year to 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 per year through 2040.

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, 2023	$	31,641	$	159	$	—	$	31,800
Charged to expense	12,314		6,175		(10,077)		8,412
Utilized and currency translation	(10,400)		(5,869)		10,077		(6,192)
Balance at December 31, 2023	33,555		465		—		34,020
Charged to expense	8,972		20,607		29,902		59,481
Utilized and currency translation	(13,209)		(21,072)		(29,902)		(64,183)
Balance at December 31, 2024	29,318		—		—		29,318
Charged to expense	28,356		13,603		18,550		60,509
Utilized and currency translation	(12,712)		(13,411)		(18,550)		(44,673)
Balance at December 31, 2025	$	44,962	$	192	$	—	$	45,154

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). Non-cash asset write-downs for the year ended December 31, 2023 were net of recovered losses of $17.7 million discussed above.

Rationalization reserves as of December 31, 2025 and 2024 were recorded in our Consolidated Balance Sheets as accrued liabilities of $20.9 million and $3.8 million, respectively, and as other liabilities of $24.3 million and $25.5 million, respectively. Excluding the impact of our withdrawal from the Central States Pension Plan discussed above, remaining expenses and cash expenditures for our rationalization plans are expected to be $17.3 million and $37.1 million, respectively.