During 2024, the Company decided to close multiple packaging facilities by the end of 2024 and early 2025. These are in addition to the multiple packaging facilities that the Company closed by the end of 2023 and early 2024. Production from these facilities has been consolidated into other existing packaging facilities. The costs associated with these exit activities are included in the table below for the three and nine months ended September 30, 2025 and 2024.

On February 7, 2023, the Company announced its plan to build a new recycled paperboard manufacturing facility located in Waco, Texas. In conjunction with this project, the Company closed its Middletown, Ohio recycled paperboard manufacturing facility in May 2025 and expects to close another smaller recycled paperboard manufacturing facility in order to consolidate production into fewer, more efficient locations. The costs associated with these exit activities are included in the table below for the three and nine months ended September 30, 2025 and 2024.

During the nine months ended September 30, 2025 and 2024, the Company recorded $57 million and $52 million of exit costs, respectively, associated with these restructurings. Other costs associated with the start-up of the new recycled paperboard machine are recorded in the period in which they are incurred.


		Three Months Ended September 30,				Nine Months Ended September 30,
In millions	Location in Statement of Operations	2025		2024		2025		2024
Asset Write-Offs and Start-Up Costs(a)	Business Combinations, Exit Activities and Other Special Items, Net	$	20	$	10	$	41	$	25
Severance Costs and Other(b)	Business Combinations, Exit Activities and Other Special Items, Net	1		3		7		10
Accelerated Depreciation	Cost of Sales	1		2		9		17
Total		$	22	$	15	$	57	$	52

(b) Costs incurred include activities for post-employment benefits, retention bonuses, incentives and professional services (see "Note 1 - Business Combinations, Exit Activities and Other Special Items, Net").

As a result of the announced closures of the recycled paperboard manufacturing facilities, the Company has incurred charges within Corporate and Other for post-employment benefits, retention bonuses and incentives of $21 million, and accelerated depreciation, inventory and asset write-offs of $20 million from announcement date through September 30, 2025. The Company expects to incur total charges associated with these exit activities for post-employment benefits, retention bonuses and incentives in the range of $21 million to $25 million and for accelerated depreciation, inventory and asset write-offs in the range of $20 million to $21 million through 2026.

Due to the expected closures of the packaging facilities and other exit activities, the Company has incurred charges within the Americas Paperboard Packaging and International Paperboard Packaging reportable segments for post-employment benefits, retention bonuses and incentives of $17 million from announcement date through September 30, 2025. The Company also incurred charges within the Americas Paperboard Packaging and International Paperboard Packaging reportable segments for accelerated depreciation, inventory and asset write-offs of $24 million from announcement date through September 30, 2025. The Company expects to incur total charges associated with these exit activities for post-employment benefits, retention bonuses and incentives in the range of $18 million to $20 million and for accelerated depreciation, inventory and asset write-offs in the range of $25 million to $27 million through 2025.