v3.24.2.u1
Restructuring and Asset Impairments
 6 Months Ended
Jun. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and Asset Impairments Restructuring and Asset Impairments
Due to its geographic footprint and the cost-competitive nature of its businesses, the Company is continually seeking more cost-effective means and structures to serve its customers and to respond to changes in its markets. As such, restructuring costs have been, and are expected to be, a recurring component of the Company’s operating costs. The amount of these costs can vary significantly from quarter to quarter and from year to year depending upon the scope, nature, and location of the restructuring activities.
Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented:
Three Months EndedSix Months Ended
June 30, 2024July 2, 2023June 30, 2024July 2, 2023
Restructuring and restructuring-related asset impairment charges$19,250 $6,057 $50,868 $34,871 
Other asset impairments— — — — 
Restructuring/Asset impairment charges$19,250 $6,057 $50,868 $34,871 

The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred:
Three Months EndedSix Months Ended
June 30, 2024July 2, 2023June 30, 2024July 2, 2023
Severance and termination benefits$6,100 $4,118 $24,093 $9,634 
Asset impairments11,499 806 20,343 19,999 
Other costs1,651 1,133 6,432 5,238 
Restructuring and restructuring-related asset impairment charges$19,250 $6,057 $50,868 $34,871 
The table below sets forth restructuring and restructuring-related asset impairment charges attributable to each reportable segment, the All Other group of businesses, and Corporate-related activity:
Three Months EndedSix Months Ended
June 30, 2024July 2, 2023June 30, 2024July 2, 2023
Consumer Packaging$11,163 $4,015 $16,088 $6,695 
Industrial Paper Packaging7,737 1,987 30,340 26,531 
All Other214 865 1,362 918 
Corporate136 (810)3,078 727 
Restructuring and restructuring-related asset impairment charges$19,250 $6,057 $50,868 $34,871 
Restructuring and restructuring-related asset impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s Condensed Consolidated Statements of Income.
The following table sets forth the activity in the restructuring accrual included in “Accrued expenses and other” in the Company’s Condensed Consolidated Balance Sheets:
Severance
and
Termination
Benefits		Asset
Impairments/
Disposal
of Assets		Other
Costs		Total
Accrual Activity
Liability at December 31, 2023
$14,315 $— $1,638 $15,953 
2024 charges24,093 20,343 6,432 50,868 
Cash (payments)/receipts(16,024)2,613 (4,653)(18,064)
Asset writedowns/disposals— (22,956)— (22,956)
Foreign currency translation(253)— (73)(326)
Liability at June 30, 2024
$22,131 $— $3,344 $25,475 
“Severance and termination benefits” during the first six months of 2024 includes the cost of severance for approximately 220 employees whose positions were eliminated in conjunction with the Company’s ongoing organizational effectiveness efforts, including the relocation of certain facilities in Greece and Germany, and severance related to the closures of paper mills in Sumner, Washington (the “Sumner Mill”) and Kilkis, Greece (the “Kilkis Mill”), the closures of two small industrial converted products facilities in China, and the planned closure of an industrial converted products facility in Mississauga, Canada, all part of the Industrial Paper Packaging segment.
“Asset impairments ” during the first six months of 2024 consists primarily of asset impairment charges related to the closures of the Sumner Mill and the Kilkis Mill, both part of the Industrial Paper Packaging segment, and the exit of a small metal canning lid business within Sonoco Metal Packaging, part of the Consumer Packaging segment.
“Other costs” during the first six months of 2024 consists primarily of equipment removal, utilities, plant security, property taxes, insurance and environmental remediation costs related to the closure of the Sumner Mill, and ongoing facility carrying costs of previously announced plant closures.
The Company expects to pay the majority of the remaining restructuring reserves by the end of 2024 using cash generated from operations. The Company also expects to recognize future additional charges totaling approximately $3,500 in connection with previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2024. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken.