ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Incorporated under the laws of South Carolina | I.R.S. Employer Identification No. 57-0248420 |
Large accelerated filer | ý | Accelerated filer | ¨ | |||||||||||||||||
Non-accelerated filer | ¨ | |||||||||||||||||||
Smaller reporting company | ¨ | |||||||||||||||||||
Emerging growth company | ¨ |
Item 1. | |||||||||||
Condensed Consolidated Balance Sheets - | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 6. |
July 1, 2018 | December 31, 2017* | September 30, 2018 | December 31, 2017* | |||||||||||||||||||
Assets | Assets | |||||||||||||||||||||
Current Assets | Current Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 197,691 | $ | 254,912 | Cash and cash equivalents | $ | 250,424 | $ | 254,912 | |||||||||||||
Trade accounts receivable, net of allowances | 768,338 | 725,251 | Trade accounts receivable, net of allowances | 775,054 | 725,251 | |||||||||||||||||
Other receivables | 90,954 | 64,561 | Other receivables | 93,470 | 64,561 | |||||||||||||||||
Inventories, net: | Inventories, net: | |||||||||||||||||||||
Finished and in process | 162,766 | 196,204 | Finished and in process | 157,920 | 196,204 | |||||||||||||||||
Materials and supplies | 308,682 | 277,859 | Materials and supplies | 309,319 | 277,859 | |||||||||||||||||
Prepaid expenses | 46,537 | 44,849 | Prepaid expenses | 64,318 | 44,849 | |||||||||||||||||
1,574,968 | 1,563,636 | 1,650,505 | 1,563,636 | |||||||||||||||||||
Property, Plant and Equipment, Net | 1,167,665 | 1,169,377 | Property, Plant and Equipment, Net | 1,140,113 | 1,169,377 | |||||||||||||||||
Goodwill | 1,287,839 | 1,241,875 | Goodwill | 1,285,368 | 1,241,875 | |||||||||||||||||
Other Intangible Assets, Net | 350,415 | 331,295 | Other Intangible Assets, Net | 340,824 | 331,295 | |||||||||||||||||
Deferred Income Taxes | 49,479 | 62,053 | Deferred Income Taxes | 50,059 | 62,053 | |||||||||||||||||
Other Assets | 192,602 | 189,485 | Other Assets | 191,765 | 189,485 | |||||||||||||||||
Total Assets | $ | 4,622,968 | $ | 4,557,721 | Total Assets | $ | 4,658,634 | $ | 4,557,721 | |||||||||||||
Liabilities and Equity | Liabilities and Equity | |||||||||||||||||||||
Current Liabilities | Current Liabilities | |||||||||||||||||||||
Payable to suppliers | $ | 556,519 | $ | 548,309 | Payable to suppliers | 583,054 | $ | 548,309 | ||||||||||||||
Accrued expenses and other | 285,096 | 283,355 | Accrued expenses and other | 321,842 | 283,355 | |||||||||||||||||
Notes payable and current portion of long-term debt | 177,645 | 159,327 | Notes payable and current portion of long-term debt | 73,899 | 159,327 | |||||||||||||||||
Accrued taxes | 10,812 | 8,979 | Accrued taxes | 15,589 | 8,979 | |||||||||||||||||
1,030,072 | 999,970 | 994,384 | 999,970 | |||||||||||||||||||
Long-term Debt, Net of Current Portion | 1,274,325 | 1,288,002 | Long-term Debt, Net of Current Portion | 1,312,678 | 1,288,002 | |||||||||||||||||
Pension and Other Postretirement Benefits | 340,602 | 355,187 | Pension and Other Postretirement Benefits | 335,379 | 355,187 | |||||||||||||||||
Deferred Income Taxes | 79,891 | 74,073 | Deferred Income Taxes | 85,473 | 74,073 | |||||||||||||||||
Other Liabilities | 107,813 | 110,429 | Other Liabilities | 97,790 | 110,429 | |||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||||
Sonoco Shareholders’ Equity | Sonoco Shareholders’ Equity | |||||||||||||||||||||
Common stock, no par value | Common stock, no par value | |||||||||||||||||||||
Authorized 300,000 shares 99,578 and 99,414 shares issued and outstanding at July 1, 2018 and December 31, 2017, respectively | 7,175 | 7,175 | ||||||||||||||||||||
Authorized 300,000 shares 99,650 and 99,414 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | Authorized 300,000 shares 99,650 and 99,414 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 7,175 | 7,175 | |||||||||||||||||||
Capital in excess of stated value | 332,528 | 330,157 | Capital in excess of stated value | 333,853 | 330,157 | |||||||||||||||||
Accumulated other comprehensive loss | (692,401 | ) | (666,272 | ) | Accumulated other comprehensive loss | (681,865) | (666,272) | |||||||||||||||
Retained earnings | 2,120,529 | 2,036,006 | Retained earnings | 2,151,658 | 2,036,006 | |||||||||||||||||
Total Sonoco Shareholders’ Equity | 1,767,831 | 1,707,066 | Total Sonoco Shareholders’ Equity | 1,810,821 | 1,707,066 | |||||||||||||||||
Noncontrolling Interests | 22,434 | 22,994 | Noncontrolling Interests | 22,109 | 22,994 | |||||||||||||||||
Total Equity | 1,790,265 | 1,730,060 | Total Equity | 1,832,930 | 1,730,060 | |||||||||||||||||
Total Liabilities and Equity | $ | 4,622,968 | $ | 4,557,721 | Total Liabilities and Equity | $ | 4,658,634 | $ | 4,557,721 |
* | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 1, 2018 | July 2, 2017 | July 1, 2018 | July 2, 2017 | September 30, 2018 | October 1, 2017 | September 30, 2018 | October 1, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 1,366,373 | $ | 1,240,674 | $ | 2,670,560 | $ | 2,412,998 | Net sales | $ | 1,364,762 | $ | 1,324,634 | $ | 4,035,322 | $ | 3,737,632 | |||||||||||||||||||||||||||||||||||||
Cost of sales | 1,089,913 | 1,002,289 | 2,143,498 | 1,951,634 | Cost of sales | 1,105,126 | 1,071,755 | 3,248,624 | 3,023,397 | |||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 276,460 | 238,385 | 527,062 | 461,364 | Gross profit | 259,636 | 252,879 | 786,698 | 714,235 | |||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 141,031 | 125,308 | 278,472 | 250,517 | Selling, general and administrative expenses | 136,002 | 129,136 | 414,474 | 379,645 | |||||||||||||||||||||||||||||||||||||||||||||
Restructuring/Asset impairment charges | 3,567 | 7,897 | 6,630 | 12,008 | Restructuring/Asset impairment charges | 22,061 | 511 | 28,691 | 12,519 | |||||||||||||||||||||||||||||||||||||||||||||
Operating profit | 131,862 | 105,180 | 241,960 | 198,839 | Operating profit | 101,573 | 123,232 | 343,533 | 322,071 | |||||||||||||||||||||||||||||||||||||||||||||
Non-operating pension costs | 513 | 34,410 | 222 | 38,096 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating pension costs/(income) | Non-operating pension costs/(income) | (25) | 3,150 | 197 | 41,246 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 16,217 | 13,823 | 31,012 | 26,908 | Interest expense | 15,989 | 14,741 | 47,001 | 41,649 | |||||||||||||||||||||||||||||||||||||||||||||
Interest income | 1,090 | 1,031 | 2,530 | 2,058 | Interest income | 1,487 | 1,094 | 4,017 | 3,152 | |||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 116,222 | 57,978 | 213,256 | 135,893 | Income before income taxes | 87,096 | 106,435 | 300,352 | 242,328 | |||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 30,293 | 17,167 | 53,649 | 42,706 | Provision for income taxes | 18,325 | 35,545 | 71,974 | 78,251 | |||||||||||||||||||||||||||||||||||||||||||||
Income before equity in earnings of affiliates | 85,929 | 40,811 | 159,607 | 93,187 | Income before equity in earnings of affiliates | 68,771 | 70,890 | 228,378 | 164,077 | |||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings of affiliates, net of tax | 3,716 | 2,845 | 4,963 | 4,799 | Equity in earnings of affiliates, net of tax | 4,049 | 2,521 | 9,012 | 7,320 | |||||||||||||||||||||||||||||||||||||||||||||
Net income | 89,645 | 43,656 | 164,570 | 97,986 | Net income | 72,820 | 73,411 | 237,390 | 171,397 | |||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (233 | ) | (531 | ) | (1,103 | ) | (1,128 | ) | Net income attributable to noncontrolling interests | (405) | (599) | (1,508) | (1,727) | |||||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco | $ | 89,412 | $ | 43,125 | $ | 163,467 | $ | 96,858 | Net income attributable to Sonoco | $ | 72,415 | $ | 72,812 | $ | 235,882 | $ | 169,670 | |||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding: | Weighted average common shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 100,568 | 100,258 | 100,482 | 100,184 | Basic | 100,640 | 100,275 | 100,534 | 100,214 | |||||||||||||||||||||||||||||||||||||||||||||
Diluted | 101,040 | 100,717 | 100,965 | 100,849 | Diluted | 101,040 | 100,684 | 100,993 | 100,793 | |||||||||||||||||||||||||||||||||||||||||||||
Per common share: | Per common share: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco: | Net income attributable to Sonoco: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.89 | $ | 0.43 | $ | 1.63 | $ | 0.97 | Basic | $ | 0.72 | $ | 0.73 | $ | 2.35 | $ | 1.69 | |||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.88 | $ | 0.43 | $ | 1.62 | $ | 0.96 | Diluted | $ | 0.72 | $ | 0.72 | $ | 2.34 | $ | 1.68 | |||||||||||||||||||||||||||||||||||||
Cash dividends | $ | 0.41 | $ | 0.39 | $ | 0.80 | $ | 0.76 | Cash dividends | $ | 0.41 | $ | 0.39 | $ | 1.21 | $ | 1.15 |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 1, 2018 | July 2, 2017 | July 1, 2018 | July 2, 2017 | September 30, 2018 | October 1, 2017 | September 30, 2018 | October 1, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 89,645 | $ | 43,656 | $ | 164,570 | $ | 97,986 | Net income | $ | 72,820 | $ | 73,411 | $ | 237,390 | $ | 171,397 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | Other comprehensive income/(loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (64,587 | ) | 29,526 | (41,604 | ) | 60,362 | Foreign currency translation adjustments | 1,186 | 27,445 | (40,418) | 87,807 | |||||||||||||||||||||||||||||||||||||||||||
Changes in defined benefit plans, net of tax | 9,422 | 36,711 | 15,239 | 48,010 | Changes in defined benefit plans, net of tax | 6,961 | 10,301 | 22,200 | 58,311 | |||||||||||||||||||||||||||||||||||||||||||||
Changes in derivative financial instruments, net of tax | (2,312 | ) | (518 | ) | (1,265 | ) | (3,467 | ) | Changes in derivative financial instruments, net of tax | 1,659 | (186) | 394 | (3,653) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss)/income | (57,477 | ) | 65,719 | (27,630 | ) | 104,905 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | Other comprehensive income/(loss) | 9,806 | 37,560 | (17,824) | 142,465 | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 32,168 | 109,375 | 136,940 | 202,891 | Comprehensive income | 82,626 | 110,971 | 219,566 | 313,862 | |||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (233 | ) | (531 | ) | (1,103 | ) | (1,128 | ) | Net income attributable to noncontrolling interests | (405) | (599) | (1,508) | (1,727) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss/(income) attributable to noncontrolling interests | 2,107 | 159 | 1,677 | (521 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (income)/loss attributable to noncontrolling interests | Other comprehensive (income)/loss attributable to noncontrolling interests | 730 | (517) | 2,407 | (1,038) | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to Sonoco | $ | 34,042 | $ | 109,003 | $ | 137,514 | $ | 201,242 | Comprehensive income attributable to Sonoco | $ | 82,951 | $ | 109,855 | $ | 220,465 | $ | 311,097 |
Six Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
July 1, 2018 | July 2, 2017 | September 30, 2018 | October 1, 2017 | |||||||||||||||||||||||||
Cash Flows from Operating Activities: | Cash Flows from Operating Activities: | |||||||||||||||||||||||||||
Net income | $ | 164,570 | $ | 97,986 | Net income | $ | 237,390 | $ | 171,397 | |||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||||
Asset impairment | 133 | 1,486 | Asset impairment | 2,627 | 1,486 | |||||||||||||||||||||||
Depreciation, depletion and amortization | 120,402 | 103,649 | Depreciation, depletion and amortization | 176,895 | 159,130 | |||||||||||||||||||||||
Share-based compensation expense | 6,122 | 5,682 | Share-based compensation expense | 9,442 | 9,028 | |||||||||||||||||||||||
Equity in earnings of affiliates | (4,963 | ) | (4,799 | ) | Equity in earnings of affiliates | (9,012) | (7,320) | |||||||||||||||||||||
Cash dividends from affiliated companies | 2,750 | 2,685 | Cash dividends from affiliated companies | 5,203 | 5,467 | |||||||||||||||||||||||
Net (gain)/loss on disposition of assets | (833 | ) | 285 | |||||||||||||||||||||||||
Net loss on disposition of assets | Net loss on disposition of assets | 7,022 | 833 | |||||||||||||||||||||||||
Pension and postretirement plan expense | 17,408 | 55,160 | Pension and postretirement plan expense | 25,736 | 66,245 | |||||||||||||||||||||||
Pension and postretirement plan contributions | (24,146 | ) | (48,511 | ) | Pension and postretirement plan contributions | (27,339) | (52,549) | |||||||||||||||||||||
Net increase/(decrease) in deferred taxes | 3,926 | (9,487 | ) | Net increase/(decrease) in deferred taxes | 6,097 | (2,126) | ||||||||||||||||||||||
Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: | Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: | |||||||||||||||||||||||||||
Trade accounts receivable | (45,032 | ) | (55,138 | ) | Trade accounts receivable | (58,187) | (70,908) | |||||||||||||||||||||
Inventories | (16,741 | ) | (12,795 | ) | Inventories | (8,938) | (14,965) | |||||||||||||||||||||
Payable to suppliers | 16,716 | 11,884 | Payable to suppliers | 45,038 | 29,321 | |||||||||||||||||||||||
Prepaid expenses | (5,602 | ) | (5,258 | ) | Prepaid expenses | (5,126) | (2,504) | |||||||||||||||||||||
Accrued expenses | 1,012 | (29,289 | ) | Accrued expenses | 35,353 | 1,229 | ||||||||||||||||||||||
Income taxes payable and other income tax items | (1,031 | ) | (11,430 | ) | Income taxes payable and other income tax items | (13,050) | (1,886) | |||||||||||||||||||||
Other assets and liabilities | 16,557 | 1,068 | Other assets and liabilities | 22,365 | (10,873) | |||||||||||||||||||||||
Net cash provided by operating activities | 251,248 | 103,178 | Net cash provided by operating activities | 451,516 | 281,005 | |||||||||||||||||||||||
Cash Flows from Investing Activities: | Cash Flows from Investing Activities: | |||||||||||||||||||||||||||
Purchase of property, plant and equipment | (88,852 | ) | (98,819 | ) | Purchase of property, plant and equipment | (135,420) | (144,738) | |||||||||||||||||||||
Cost of acquisitions, net of cash acquired | (141,305 | ) | (217,489 | ) | Cost of acquisitions, net of cash acquired | (150,995) | (383,358) | |||||||||||||||||||||
Proceeds from the sale of assets | 6,164 | 1,973 | Proceeds from the sale of assets | 23,444 | 3,743 | |||||||||||||||||||||||
Investment in affiliates and other, net | 559 | 1,372 | Investment in affiliates and other, net | 899 | 2,843 | |||||||||||||||||||||||
Net cash used in investing activities | (223,434 | ) | (312,963 | ) | Net cash used in investing activities | (262,072) | (521,510) | |||||||||||||||||||||
Cash Flows from Financing Activities: | Cash Flows from Financing Activities: | |||||||||||||||||||||||||||
Proceeds from issuance of debt | 137,272 | 180,363 | Proceeds from issuance of debt | 202,460 | 436,335 | |||||||||||||||||||||||
Principal repayment of debt | (93,564 | ) | (34,461 | ) | Principal repayment of debt | (157,911) | (196,198) | |||||||||||||||||||||
Net change in commercial paper | (33,000 | ) | 87,000 | Net change in commercial paper | (100,000) | 98,000 | ||||||||||||||||||||||
Net (decrease)/increase in outstanding checks | (5,749 | ) | 1,195 | Net (decrease)/increase in outstanding checks | (6,416) | 500 | ||||||||||||||||||||||
Cash dividends | (79,801 | ) | (75,604 | ) | Cash dividends | (120,651) | (114,368) | |||||||||||||||||||||
Shares acquired | (4,558 | ) | (5,884 | ) | Shares acquired | (6,987) | (5,942) | |||||||||||||||||||||
Net cash (used in)/provided by financing activities | (79,400 | ) | 152,609 | Net cash (used in)/provided by financing activities | (189,505) | 218,327 | ||||||||||||||||||||||
Effects of Exchange Rate Changes on Cash | (5,635 | ) | 7,541 | Effects of Exchange Rate Changes on Cash | (4,427) | 12,860 | ||||||||||||||||||||||
Net Decrease in Cash and Cash Equivalents | (57,221 | ) | (49,635 | ) | Net Decrease in Cash and Cash Equivalents | (4,488) | (9,318) | |||||||||||||||||||||
Cash and cash equivalents at beginning of period | 254,912 | 257,226 | Cash and cash equivalents at beginning of period | 254,912 | 257,226 | |||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 197,691 | $ | 207,591 | Cash and cash equivalents at end of period | $ | 250,424 | $ | 247,908 |
December 31, 2017 As Reported | Adjustments | January 1, 2018 Adjusted | ||||||||||||||||||
Assets | ||||||||||||||||||||
Current Assets | ||||||||||||||||||||
Trade accounts receivable, net of allowances | $ | 725,251 | $ | 3,636 | $ | 728,887 | ||||||||||||||
Other receivables | 64,561 | 41,351 | 105,912 | |||||||||||||||||
Inventories: | ||||||||||||||||||||
Finished and in process | 196,204 | (37,447) | 158,757 | |||||||||||||||||
Total Assets | $ | 4,557,721 | $ | 7,540 | $ | 4,565,261 | ||||||||||||||
Liabilities and Equity | ||||||||||||||||||||
Current Liabilities | ||||||||||||||||||||
Accrued expenses and other | 283,355 | 5,215 | 288,570 | |||||||||||||||||
999,970 | 5,215 | 1,005,185 | ||||||||||||||||||
Deferred Income Taxes | 74,073 | 604 | 74,677 | |||||||||||||||||
Sonoco Shareholders’ Equity | ||||||||||||||||||||
Retained earnings | 2,036,006 | 1,721 | 2,037,727 | |||||||||||||||||
Total Sonoco Shareholders’ Equity | 1,707,066 | 1,721 | 1,708,787 | |||||||||||||||||
Total Equity | 1,730,060 | 1,721 | 1,731,781 | |||||||||||||||||
Total Liabilities and Equity | $ | 4,557,721 | $ | 7,540 | $ | 4,565,261 | ||||||||||||||
December 31, 2017 As Reported | Adjustments | January 1, 2018 Adjusted | ||||||||
Assets | ||||||||||
Current Assets | ||||||||||
Trade accounts receivable, net of allowances | 725,251 | 3,636 | 728,887 | |||||||
Other receivables | 64,561 | 41,351 | 105,912 | |||||||
Inventories: | ||||||||||
Finished and in process | 196,204 | (37,447 | ) | 158,757 | ||||||
Total Assets | $ | 4,557,721 | $ | 7,540 | $ | 4,565,261 | ||||
Liabilities and Equity | ||||||||||
Current Liabilities | ||||||||||
Accrued expenses and other | 283,355 | 5,215 | 288,570 | |||||||
999,970 | 5,215 | 1,005,185 | ||||||||
Deferred Income Taxes | 74,073 | 604 | 74,677 | |||||||
Sonoco Shareholders’ Equity | ||||||||||
Retained earnings | 2,036,006 | 1,721 | 2,037,727 | |||||||
Total Sonoco Shareholders’ Equity | 1,707,066 | 1,721 | 1,708,787 | |||||||
Total Equity | 1,730,060 | 1,721 | 1,731,781 | |||||||
Total Liabilities and Equity | $ | 4,557,721 | $ | 7,540 | $ | 4,565,261 |
September 30, 2018 as reported | Adjustments | Balances without Adoption of ASC 606 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Current Assets | ||||||||||||||||||||
Trade accounts receivable, net of allowances | $ | 775,054 | (5,744) | $ | 769,310 | |||||||||||||||
Other receivables | 93,470 | (44,698) | 48,772 | |||||||||||||||||
Inventories: | ||||||||||||||||||||
Finished and in process | 157,920 | 42,051 | 199,971 | |||||||||||||||||
Total Assets | $ | 4,658,634 | $ | (8,391) | $ | 4,650,243 | ||||||||||||||
Liabilities and Equity | ||||||||||||||||||||
Current Liabilities | ||||||||||||||||||||
Accrued expenses and other | 321,842 | (5,998) | 315,844 | |||||||||||||||||
994,384 | (5,998) | 988,386 | ||||||||||||||||||
Deferred Income Taxes | 85,473 | (622) | 84,851 | |||||||||||||||||
Sonoco Shareholders' Equity | ||||||||||||||||||||
Retained earnings | 2,151,658 | (1,771) | 2,149,887 | |||||||||||||||||
Total Sonoco Shareholders’ Equity | 1,810,821 | (1,771) | 1,809,050 | |||||||||||||||||
Total Equity | 1,832,930 | (1,771) | 1,831,159 | |||||||||||||||||
Total Liabilities and Equity | $ | 4,658,634 | $ | (8,391) | $ | 4,650,243 | ||||||||||||||
July 1, 2018 | Adjustments | Balances without Adoption of Topic 606 | ||||||||
Assets | ||||||||||
Current Assets | ||||||||||
Trade accounts receivable, net of allowances | 768,338 | (5,187 | ) | 763,151 | ||||||
Other receivables | 90,954 | (44,347 | ) | 46,607 | ||||||
Inventories: | ||||||||||
Finished and in process | 162,766 | 40,321 | 203,087 | |||||||
Total Assets | $ | 4,622,968 | $ | (9,213 | ) | $ | 4,613,755 | |||
Liabilities and Equity | ||||||||||
Current Liabilities | ||||||||||
Accrued expenses and other | 285,096 | (5,737 | ) | 279,359 | ||||||
1,030,072 | (5,737 | ) | 1,024,335 | |||||||
Deferred Income Taxes | 79,891 | (904 | ) | 78,987 | ||||||
Sonoco Shareholders' Equity | ||||||||||
Retained earnings | 2,120,529 | (2,572 | ) | 2,117,957 | ||||||
Total Sonoco Shareholders’ Equity | 1,767,831 | (2,572 | ) | 1,765,259 | ||||||
Total Equity | 1,790,265 | (2,572 | ) | 1,787,693 | ||||||
Total Liabilities and Equity | $ | 4,622,968 | $ | (9,213 | ) | $ | 4,613,755 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 as reported | Adjustments | Balances without Adoption of ASC 606 | September 30, 2018 as reported | Adjustments | Balances without Adoption of ASC 606 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 1,364,762 | $ | (648) | $ | 1,364,114 | $ | 4,035,322 | $ | (4,673) | $ | 4,030,649 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 1,105,126 | (1,731) | 1,103,395 | 3,248,624 | (4,605) | 3,244,019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 259,636 | 1,083 | 260,719 | 786,698 | (68) | 786,630 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating profit | 101,573 | 1,083 | 102,656 | 343,533 | (68) | 343,465 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 87,096 | 1,083 | 88,179 | 300,352 | (68) | 300,284 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 18,325 | 281 | 18,606 | 71,974 | (18) | 71,956 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before equity in earnings of affiliates | 68,771 | 802 | 69,573 | 228,378 | (50) | 228,328 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 72,820 | 802 | 73,622 | 237,390 | (50) | 237,340 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco | $ | 72,415 | $ | 802 | $ | 73,217 | $ | 235,882 | $ | (50) | $ | 235,832 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
July 1, 2018 | Adjustments | Balances without Adoption of Topic 606 | July 1, 2018 | Adjustments | Balances without Adoption of Topic 606 | |||||||||||||||
Net sales | $ | 1,366,373 | $ | (966 | ) | $ | 1,365,407 | $ | 2,670,560 | $ | (4,025 | ) | $ | 2,666,535 | ||||||
Cost of sales | 1,089,913 | (252 | ) | 1,089,661 | 2,143,498 | (2,874 | ) | 2,140,624 | ||||||||||||
Gross profit | 276,460 | (714 | ) | 275,746 | 527,062 | (1,151 | ) | 525,911 | ||||||||||||
Operating profit | 131,862 | (714 | ) | 131,148 | 241,960 | (1,151 | ) | 240,809 | ||||||||||||
Income before income taxes | 116,222 | (714 | ) | 115,508 | 213,256 | (1,151 | ) | 212,105 | ||||||||||||
Provision for income taxes | 30,293 | (186 | ) | 30,107 | 53,649 | (299 | ) | 53,350 | ||||||||||||
Income before equity in earnings of affiliates | 85,929 | (528 | ) | 85,401 | 159,607 | (852 | ) | 158,755 | ||||||||||||
Net income | 89,645 | (528 | ) | 89,117 | 164,570 | (852 | ) | 163,718 | ||||||||||||
Net income attributable to Sonoco | $ | 89,412 | $ | (528 | ) | $ | 88,884 | $ | 163,467 | $ | (852 | ) | $ | 162,615 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 as reported | Adjustments | Balances without Adoption of ASC 606 | September 30, 2018 as reported | Adjustments | Balances without Adoption of ASC 606 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 72,820 | $ | 802 | $ | 73,622 | $ | 237,390 | $ | (50) | $ | 237,340 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | 1,186 | (30) | 1,156 | (40,418) | 13 | (40,405) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 9,806 | (30) | 9,776 | (17,824) | 13 | (17,811) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 82,626 | 772 | 83,398 | 219,566 | (37) | 219,529 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to Sonoco | $ | 82,951 | $ | 772 | $ | 83,723 | $ | 220,465 | $ | (37) | $ | 220,428 |
Three Months Ended | Six Months Ended | |||||||||||||||||||
July 1, 2018 | Adjustments | Balances without Adoption of Topic 606 | July 1, 2018 | Adjustments | Balances without Adoption of Topic 606 | |||||||||||||||
Net income | $ | 89,645 | $ | (528 | ) | $ | 89,117 | $ | 164,570 | $ | (852 | ) | $ | 163,718 | ||||||
Other comprehensive income/(loss): | ||||||||||||||||||||
Foreign currency translation adjustments | (64,587 | ) | 376 | (64,211 | ) | (41,604 | ) | 309 | (41,295 | ) | ||||||||||
Other comprehensive income | (57,477 | ) | 376 | (57,101 | ) | (27,630 | ) | 309 | (27,321 | ) | ||||||||||
Comprehensive income | 32,168 | (152 | ) | 32,016 | 136,940 | (543 | ) | 136,397 | ||||||||||||
Comprehensive income attributable to Sonoco | $ | 34,042 | $ | (152 | ) | $ | 33,890 | $ | 137,514 | $ | (543 | ) | $ | 136,971 |
Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2018 As Reported | Adjustments | Balances without Adoption of ASC 606 | ||||||||||||||||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||||||||||||||
Net income | $ | 237,390 | $ | (50) | $ | 237,340 | ||||||||||||||||||||||||||
Trade accounts receivable | (58,187) | 2,108 | (56,079) | |||||||||||||||||||||||||||||
Inventories | (8,938) | (4,604) | (13,542) | |||||||||||||||||||||||||||||
Other assets and liabilities | 22,365 | 3,347 | 25,712 | |||||||||||||||||||||||||||||
Accrued expenses | 35,353 | (783) | 34,570 | |||||||||||||||||||||||||||||
Income taxes payable and other income tax items | (13,050) | (18) | (13,068) | |||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 451,516 | $ | — | $ | 451,516 | ||||||||||||||||||||||||||
Six Months Ended | ||||||||||
July 1, 2018 As Reported | Adjustments | Balances without Adoption of Topic 606 | ||||||||
Cash Flows from Operating Activities: | ||||||||||
Net income | $ | 164,570 | $ | (852 | ) | $ | 163,718 | |||
Trade accounts receivable | (45,032 | ) | 1,551 | (43,481 | ) | |||||
Inventories | (16,741 | ) | (2,874 | ) | (19,615 | ) | ||||
Other assets and liabilities | 16,557 | 2,996 | 19,553 | |||||||
Accrued expenses | 1,012 | (522 | ) | 490 | ||||||
Income taxes payable and other income tax items | (1,031 | ) | (299 | ) | (1,330 | ) | ||||
Net cash provided by operating activities | 251,248 | — | 251,248 |
Trade accounts receivable | $ | 6,072 | |
Inventories | 25,425 | ||
Property, plant and equipment | 30,880 | ||
Goodwill | 48,387 | ||
Other intangible assets | 45,610 | ||
Trade accounts payable | (5,995 | ) | |
Other net tangible assets /(liabilities) | (1,574 | ) | |
Net assets | $ | 148,805 | |
Trade accounts receivable | $ | 6,072 | |||
Inventories | 27,225 | ||||
Property, plant and equipment | 29,080 | ||||
Goodwill | 47,193 | ||||
Other intangible assets | 45,624 | ||||
Trade accounts payable | (6,006) | ||||
Other net tangible assets /(liabilities) | (649) | ||||
Net assets | $ | 148,539 | |||
(unaudited) | (unaudited) | |||||||||||||||||||||||
Pro Forma Supplemental Information | Three Months Ended | Six Months Ended | Pro Forma Supplemental Information | Three Months Ended | Nine Months Ended | |||||||||||||||||||
Consolidated | July 2, 2017 | July 2, 2017 | Consolidated | October 1, 2017 | October 1, 2017 | |||||||||||||||||||
Net sales | $ | 1,274,053 | $ | 2,511,516 | Net sales | $ | 1,332,532 | $ | 3,844,048 | |||||||||||||||
Net income attributable to Sonoco | $ | 47,711 | $ | 99,186 | Net income attributable to Sonoco | 73,284 | 172,470 | |||||||||||||||||
Earnings per share: | Earnings per share: | |||||||||||||||||||||||
Pro forma basic | $0.48 | $0.99 | Pro forma basic | $0.73 | $1.72 | |||||||||||||||||||
Pro forma diluted | $0.47 | $ | 0.98 | Pro forma diluted | $0.73 | $1.71 | ||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||
Aggregate Supplemental Information | Three Months Ended | Six Months Ended | Aggregate Supplemental Information | Three Months Ended | Nine Months Ended | |||||||||||||||||||
Packaging Holdings and Clear Lam | July 2, 2017 | July 2, 2017 | Packaging Holdings and Clear Lam | October 1, 2017 | October 1, 2017 | |||||||||||||||||||
Actual net sales | $ | 33,379 | $ | 68,219 | Actual net sales | $ | 77,764 | $ | 145,983 | |||||||||||||||
Actual net income | $ | 4,503 | $ | 184 | Actual net income | 1,976 | 2,160 | |||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 1, 2018 | July 2, 2017 | July 1, 2018 | July 2, 2017 | September 30, 2018 | October 1, 2017 | September 30, 2018 | October 1, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||
Numerator: | Numerator: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco | $ | 89,412 | $ | 43,125 | $ | 163,467 | $ | 96,858 | Net income attributable to Sonoco | $ | 72,415 | $ | 72,812 | $ | 235,882 | $ | 169,670 | |||||||||||||||||||||||||||||||||||||
Denominator: | Denominator: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding: | Weighted average common shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 100,568 | 100,258 | 100,482 | 100,184 | Basic | 100,640 | 100,275 | 100,534 | 100,214 | |||||||||||||||||||||||||||||||||||||||||||||
Dilutive effect of stock-based compensation | 472 | 459 | 483 | 665 | Dilutive effect of stock-based compensation | 400 | 409 | 459 | 579 | |||||||||||||||||||||||||||||||||||||||||||||
Diluted | 101,040 | 100,717 | 100,965 | 100,849 | Diluted | 101,040 | 100,684 | 100,993 | 100,793 | |||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco per common share: | Net income attributable to Sonoco per common share: | Net income attributable to Sonoco per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.89 | $ | 0.43 | $ | 1.63 | $ | 0.97 | Basic | $ | 0.72 | $ | 0.73 | $ | 2.35 | $ | 1.69 | |||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.88 | $ | 0.43 | $ | 1.62 | $ | 0.96 | Diluted | $ | 0.72 | $ | 0.72 | $ | 2.34 | $ | 1.68 |
Three Months Ended | Six Months Ended | |||||||||||
July 1, 2018 | July 2, 2017 | July 1, 2018 | July 2, 2017 | |||||||||
Anti-dilutive stock appreciation rights | 1,043 | 532 | 891 | 444 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, 2018 | October 1, 2017 | September 30, 2018 | October 1, 2017 | |||||||||||||||||||||||||||||||||||
Anti-dilutive stock appreciation rights | 895 | 531 | 892 | 473 |
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Second Quarter | Six Months | Second Quarter | Six Months | Third Quarter | Nine Months | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||||||||||||||||
Restructuring/Asset impairment: | Restructuring/Asset impairment: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 Actions | $ | 2,708 | $ | 4,915 | $ | — | $ | — | 2018 Actions | $ | 19,348 | $ | 24,263 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||
2017 Actions | 1,017 | 1,422 | 3,884 | 6,188 | 2017 Actions | 3,184 | 4,606 | 1,610 | 7,798 | |||||||||||||||||||||||||||||||||||||||||||||
2016 and Earlier Actions | (158 | ) | 293 | 3,675 | 5,482 | 2016 and Earlier Actions | (471) | (178) | (1,301) | 4,181 | ||||||||||||||||||||||||||||||||||||||||||||
Other asset impairments | — | — | 338 | 338 | Other asset impairments | — | — | 202 | 540 | |||||||||||||||||||||||||||||||||||||||||||||
Restructuring/Asset impairment charges | $ | 3,567 | $ | 6,630 | $ | 7,897 | $ | 12,008 | Restructuring/Asset impairment charges | 22,061 | 28,691 | 511 | 12,519 | |||||||||||||||||||||||||||||||||||||||||
Income tax benefit | $ | (1,046 | ) | (1,731 | ) | $ | (2,338 | ) | (3,636 | ) | Income tax benefit | (5,465) | (7,196) | (445) | (4,081) | |||||||||||||||||||||||||||||||||||||||
Less: Costs attributable to noncontrolling interests, net of tax | (15 | ) | (20 | ) | (12 | ) | (14 | ) | Less: Costs attributable to noncontrolling interests, net of tax | (28) | (48) | (21) | (35) | |||||||||||||||||||||||||||||||||||||||||
Restructuring/asset impairment charges attributable to Sonoco, net of tax | $ | 2,506 | $ | 4,879 | $ | 5,547 | $ | 8,358 | Restructuring/asset impairment charges attributable to Sonoco, net of tax | $ | 16,568 | $ | 21,447 | $ | 45 | $ | 8,403 |
2018 Actions | Third Quarter 2018 | Total Incurred to Date | Estimated Total Cost | |||||||||||||||||
Severance and Termination Benefits | ||||||||||||||||||||
Consumer Packaging | $ | 1,154 | $ | 2,848 | $ | 4,148 | ||||||||||||||
Display and Packaging | 1,134 | 1,865 | 1,865 | |||||||||||||||||
Paper and Industrial Converted Products | 608 | $ | 1,900 | 1,900 | ||||||||||||||||
Protective Solutions | 232 | 1,008 | 1,008 | |||||||||||||||||
Corporate | — | 243 | 243 | |||||||||||||||||
Asset Impairment / Disposal of Assets | ||||||||||||||||||||
Consumer Packaging | 305 | 380 | 380 | |||||||||||||||||
Display and Packaging | 4,517 | 4,517 | 4,517 | |||||||||||||||||
Paper and Industrial Converted Products | 70 | 70 | 70 | |||||||||||||||||
Protective Solutions | — | (243) | (243) | |||||||||||||||||
Other Costs | ||||||||||||||||||||
Consumer Packaging | 361 | 366 | 866 | |||||||||||||||||
Display and Packaging | 9,729 | 9,732 | 9,732 | |||||||||||||||||
Paper and Industrial Converted Products | 1,250 | 1,543 | 1,643 | |||||||||||||||||
Protective Solutions | — | 46 | 46 | |||||||||||||||||
Corporate | (12) | (12) | (12) | |||||||||||||||||
Total Charges and Adjustments | $ | 19,348 | $ | 24,263 | $ | 26,163 |
2018 Actions | Second Quarter 2018 | Total Incurred to Date | Estimated Total Cost | |||||||||
Severance and Termination Benefits | ||||||||||||
Consumer Packaging | $ | 906 | $ | 1,694 | $ | 1,994 | ||||||
Display and Packaging | 556 | 731 | 731 | |||||||||
Paper and Industrial Converted Products | 301 | $ | 1,292 | 1,292 | ||||||||
Protective Solutions | 517 | 776 | 776 | |||||||||
Corporate | 20 | 243 | 243 | |||||||||
Asset Impairment / Disposal of Assets | ||||||||||||
Consumer Packaging | 89 | 75 | 75 | |||||||||
Protective Solutions | 29 | (243 | ) | (243 | ) | |||||||
Other Costs | ||||||||||||
Consumer Packaging | (6 | ) | 5 | 105 | ||||||||
Display and Packaging | 3 | 3 | 3 | |||||||||
Paper and Industrial Converted Products | 293 | 293 | 1,293 | |||||||||
Protective Solutions | — | 46 | 146 | |||||||||
Total Charges and Adjustments | $ | 2,708 | $ | 4,915 | $ | 6,415 |
2018 Actions | Severance and Termination Benefits | Asset Impairment/ Disposal of Assets | Other Costs | Total | ||||||||||||||||||||||
Accrual Activity 2018 Year to Date | ||||||||||||||||||||||||||
Liability at December 31, 2017 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
2018 charges | 7,864 | 4,724 | 11,675 | 24,263 | ||||||||||||||||||||||
Cash receipts/(payments) | (4,166) | 24,217 | (11,385) | 8,666 | ||||||||||||||||||||||
Asset write downs/disposals | — | (28,941) | — | (28,941) | ||||||||||||||||||||||
Foreign currency translation | (17) | — | 2 | (15) | ||||||||||||||||||||||
Liability at September 30, 2018 | $ | 3,681 | $ | — | $ | 292 | $ | 3,973 |
2018 Actions | Severance and Termination Benefits | Asset Impairment/ Disposal of Assets | Other Costs | Total | ||||||||||||
Accrual Activity 2018 Year to Date | ||||||||||||||||
Liability at December 31, 2017 | $ | — | $ | — | $ | — | $ | — | ||||||||
2018 charges | 4,736 | (168 | ) | 347 | 4,915 | |||||||||||
Cash receipts/(payments) | (2,039 | ) | 2,049 | (309 | ) | (299 | ) | |||||||||
Asset write downs/disposals | — | (1,881 | ) | — | (1,881 | ) | ||||||||||
Foreign currency translation | (22 | ) | — | — | (22 | ) | ||||||||||
Liability at July 1, 2018 | $ | 2,675 | $ | — | $ | 38 | $ | 2,713 |
2018 | 2017 | Total Incurred to Date | Estimated Total Cost | |||||||||||||||||||||||||||||||||||||||||||||||
2017 Actions | Third Quarter | Nine Months | Third Quarter | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||
Severance and Termination Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 2,397 | $ | 3,453 | $ | 60 | $ | 1,376 | $ | 7,644 | $ | 8,744 | ||||||||||||||||||||||||||||||||||||||
Display and Packaging | — | (15) | — | 172 | 726 | 726 | ||||||||||||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 4 | 6 | 748 | 2,952 | 4,024 | 4,024 | ||||||||||||||||||||||||||||||||||||||||||||
Protective Solutions | (149) | 163 | 83 | 1,057 | 1,561 | 1,561 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | — | (4) | 452 | 452 | 452 | ||||||||||||||||||||||||||||||||||||||||||||
Asset Impairment / Disposal of Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Packaging | — | — | 126 | 126 | 351 | 351 | ||||||||||||||||||||||||||||||||||||||||||||
Display and Packaging | — | 193 | — | — | 193 | 193 | ||||||||||||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | — | (1,264) | 13 | 13 | (1,359) | (1,359) | ||||||||||||||||||||||||||||||||||||||||||||
Protective Solutions | 93 | 93 | 55 | 832 | 964 | 964 | ||||||||||||||||||||||||||||||||||||||||||||
Other Costs | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Packaging | 406 | 958 | 37 | 288 | 1,837 | 2,037 | ||||||||||||||||||||||||||||||||||||||||||||
Display and Packaging | 213 | (13) | — | — | 776 | 1,076 | ||||||||||||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 131 | 772 | 62 | 100 | 1,773 | 1,973 | ||||||||||||||||||||||||||||||||||||||||||||
Protective Solutions | 89 | 260 | 430 | 430 | 1,002 | 1,102 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | — | — | — | (9) | (9) | ||||||||||||||||||||||||||||||||||||||||||||
Total Charges and Adjustments | $ | 3,184 | $ | 4,606 | $ | 1,610 | $ | 7,798 | $ | 19,935 | $ | 21,835 |
2018 | 2017 | Total Incurred to Date | Estimated Total Cost | |||||||||||||||||||||
2017 Actions | Second Quarter | Six Months | Second Quarter | Six Months | ||||||||||||||||||||
Severance and Termination Benefits | ||||||||||||||||||||||||
Consumer Packaging | $ | 684 | $ | 1,056 | $ | 349 | $ | 1,316 | $ | 5,247 | $ | 5,247 | ||||||||||||
Display and Packaging | (7 | ) | (15 | ) | 66 | 172 | 726 | 726 | ||||||||||||||||
Paper and Industrial Converted Products | (2 | ) | 2 | 1,663 | 2,204 | 4,020 | 4,020 | |||||||||||||||||
Protective Solutions | 179 | 312 | 899 | 974 | 1,710 | 1,710 | ||||||||||||||||||
Corporate | — | — | — | 456 | 452 | 452 | ||||||||||||||||||
Asset Impairment / Disposal of Assets | ||||||||||||||||||||||||
Consumer Packaging | $ | — | — | — | — | 351 | 351 | |||||||||||||||||
Display and Packaging | 27 | 193 | — | — | 193 | 193 | ||||||||||||||||||
Paper and Industrial Converted Products | (599 | ) | (1,264 | ) | — | — | (1,359 | ) | (1,359 | ) | ||||||||||||||
Protective Solutions | — | — | 777 | 777 | 871 | 871 | ||||||||||||||||||
Other Costs | ||||||||||||||||||||||||
Consumer Packaging | $ | 445 | 552 | 92 | 251 | 1,431 | 1,931 | |||||||||||||||||
Display and Packaging | 122 | (226 | ) | — | — | 563 | 813 | |||||||||||||||||
Paper and Industrial Converted Products | 91 | 641 | 38 | 38 | 1,642 | 1,642 | ||||||||||||||||||
Protective Solutions | 77 | 171 | — | — | 913 | 913 | ||||||||||||||||||
Corporate | — | — | — | — | (9 | ) | (9 | ) | ||||||||||||||||
Total Charges and Adjustments | $ | 1,017 | $ | 1,422 | $ | 3,884 | $ | 6,188 | $ | 16,751 | $ | 17,501 |
2017 Actions | Severance and Termination Benefits | Asset Impairment/ Disposal of Assets | Other Costs | Total | 2017 Actions | Severance and Termination Benefits | Asset Impairment/ Disposal of Assets | Other Costs | Total | |||||||||||||||||||||||||||||||||
Accrual Activity 2018 Year to Date | Accrual Activity 2018 Year to Date | |||||||||||||||||||||||||||||||||||||||||
Liability at December 31, 2017 | $ | 3,889 | $ | — | $ | 213 | $ | 4,102 | Liability at December 31, 2017 | $ | 3,889 | $ | — | $ | 213 | $ | 4,102 | |||||||||||||||||||||||||
2018 charges | 1,355 | (1,071 | ) | 1,138 | 1,422 | 2018 charges | 3,607 | (978) | 1,977 | 4,606 | ||||||||||||||||||||||||||||||||
Cash receipts/(payments) | (3,052 | ) | 1,841 | (1,434 | ) | (2,645 | ) | Cash receipts/(payments) | (5,714) | 1,841 | (2,173) | (6,046) | ||||||||||||||||||||||||||||||
Asset write downs/disposals | — | (770 | ) | — | (770 | ) | Asset write downs/disposals | — | (863) | — | (863) | |||||||||||||||||||||||||||||||
Foreign currency translation | (12 | ) | — | 94 | 82 | Foreign currency translation | (8) | — | (10) | (18) | ||||||||||||||||||||||||||||||||
Liability at July 1, 2018 | $ | 2,180 | $ | — | $ | 11 | $ | 2,191 | ||||||||||||||||||||||||||||||||||
Liability at September 30, 2018 | Liability at September 30, 2018 | $ | 1,774 | $ | — | $ | 7 | $ | 1,781 |
2018 | 2017 | |||||||||||||||||||||||||||||||||||||
2016 and Earlier Actions | Third Quarter | Nine Months | Third Quarter | Nine Months | ||||||||||||||||||||||||||||||||||
Consumer Packaging | $ | (292) | $ | 41 | $ | (1,334) | $ | 1,259 | ||||||||||||||||||||||||||||||
Display and Packaging | — | (23) | (2) | 549 | ||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | (198) | (251) | (32) | 2,196 | ||||||||||||||||||||||||||||||||||
Protective Solutions | 19 | 55 | 53 | 156 | ||||||||||||||||||||||||||||||||||
Corporate | — | — | 14 | 21 | ||||||||||||||||||||||||||||||||||
Total (credits)/charges, net of adjustments | $ | (471) | $ | (178) | $ | (1,301) | $ | 4,181 |
2018 | 2017 | |||||||||||||||
2016 and Earlier Actions | Second Quarter | Six Months | Second Quarter | Six Months | ||||||||||||
Consumer Packaging | $ | (132 | ) | $ | 333 | $ | 2,619 | $ | 2,593 | |||||||
Display and Packaging | (24 | ) | (23 | ) | 156 | 551 | ||||||||||
Paper and Industrial Converted Products | (20 | ) | (53 | ) | 875 | 2,228 | ||||||||||
Protective Solutions | 18 | 36 | 25 | 103 | ||||||||||||
Corporate | — | — | — | 7 | ||||||||||||
Total (credits)/charges, net of adjustments | $ | (158 | ) | $ | 293 | $ | 3,675 | $ | 5,482 |
Gains and Losses on Cash Flow Hedges | Defined Benefit Pension Items | Foreign Currency Items | Accumulated Other Comprehensive Loss | Gains and Losses on Cash Flow Hedges | Defined Benefit Pension Items | Foreign Currency Items | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | (641 | ) | $ | (467,136 | ) | $ | (198,495 | ) | $ | (666,272 | ) | Balance at December 31, 2017 | $ | (641) | $ | (467,136) | $ | (198,495) | $ | (666,272) | |||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | (1,139 | ) | 1,068 | (39,927 | ) | (39,998 | ) | Other comprehensive income/(loss) before reclassifications | 583 | 1,221 | (38,011) | (36,207) | ||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income | (182 | ) | 14,171 | — | 13,989 | Amounts reclassified from accumulated other comprehensive loss to net income | (325) | 20,979 | — | 20,654 | ||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to fixed assets | 56 | — | — | 56 | Amounts reclassified from accumulated other comprehensive loss to fixed assets | 136 | — | — | 136 | |||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | (1,265 | ) | 15,239 | (39,927 | ) | (25,953 | ) | Other comprehensive income/(loss) | 394 | 22,200 | (38,011) | (15,417) | ||||||||||||||||||||||||||||||
Amounts reclassified from retained earnings to accumulated other comprehensive loss | $ | (176 | ) | $ | — | $ | — | (176 | ) | Amounts reclassified from retained earnings to accumulated other comprehensive loss | (176) | $ | — | $ | — | (176) | ||||||||||||||||||||||||||
Balance at July 1, 2018 | $ | (2,082 | ) | $ | (451,897 | ) | $ | (238,422 | ) | $ | (692,401 | ) | ||||||||||||||||||||||||||||||
Balance at September 30, 2018 | Balance at September 30, 2018 | $ | (423) | $ | (444,936) | $ | (236,506) | $ | (681,865) | |||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | $ | 1,939 | $ | (453,821 | ) | $ | (286,498 | ) | $ | (738,380 | ) | Balance at December 31, 2016 | 1,939 | (453,821) | (286,498) | (738,380) | ||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | (2,220 | ) | 18,117 | 59,841 | 75,738 | Other comprehensive income/(loss) before reclassifications | (654) | 22,337 | 86,769 | 108,452 | ||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income | (1,257 | ) | 29,893 | — | 28,636 | Amounts reclassified from accumulated other comprehensive loss to net income | (2,984) | 35,974 | — | 32,990 | ||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to fixed assets | 10 | — | — | 10 | Amounts reclassified from accumulated other comprehensive loss to fixed assets | (15) | — | — | (15) | |||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | (3,467 | ) | 48,010 | 59,841 | 104,384 | Other comprehensive income/(loss) | (3,653) | 58,311 | 86,769 | 141,427 | ||||||||||||||||||||||||||||||||
Balance at July 2, 2017 | $ | (1,528 | ) | $ | (405,811 | ) | $ | (226,657 | ) | $ | (633,996 | ) | ||||||||||||||||||||||||||||||
Balance at October 1, 2017 | Balance at October 1, 2017 | $ | (1,714) | $ | (395,510) | $ | (199,729) | $ | (596,953) | |||||||||||||||||||||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Loss | Amount Reclassified from Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Loss Components | July 1, 2018 | July 2, 2017 | July 1, 2018 | July 2, 2017 | Affected Line Item in the Condensed Consolidated Statements of Income | Details about Accumulated Other Comprehensive Loss Components | September 30, 2018 | October 1, 2017 | September 30, 2018 | October 1, 2017 | Affected Line Item in the Condensed Consolidated Statements of Income | |||||||||||||||||||||||||||||||||||||||||||
Gains and losses on cash flow hedges | Gains and losses on cash flow hedges | Gains and losses on cash flow hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (240 | ) | $ | 2,243 | $ | 570 | $ | 3,283 | Net sales | Foreign exchange contracts | $ | 614 | $ | 4,814 | $ | 1,184 | $ | 8,097 | Net sales | ||||||||||||||||||||||||||||||||||
Foreign exchange contracts | 174 | (1,317 | ) | (353 | ) | (2,042 | ) | Cost of sales | Foreign exchange contracts | (260) | (2,766) | (613) | (4,808) | Cost of sales | ||||||||||||||||||||||||||||||||||||||||
Commodity contracts | 68 | 463 | 10 | 711 | Cost of sales | Commodity contracts | (153) | 656 | (143) | 1,367 | Cost of sales | |||||||||||||||||||||||||||||||||||||||||||
2 | 1,389 | 227 | 1,952 | Income before income taxes | 201 | 2,704 | 428 | 4,656 | Income before income taxes | |||||||||||||||||||||||||||||||||||||||||||||
(1 | ) | (497 | ) | (45 | ) | (695 | ) | Provision for income taxes | (58) | (977) | (103) | (1,672) | Provision for income taxes | |||||||||||||||||||||||||||||||||||||||||
$ | 1 | $ | 892 | $ | 182 | $ | 1,257 | Net income | $ | 143 | $ | 1,727 | $ | 325 | $ | 2,984 | Net income | |||||||||||||||||||||||||||||||||||||
Defined benefit pension items | Defined benefit pension items | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of curtailment loss(a) | Effect of curtailment loss(a) | $ | (97) | $ | — | $ | (97) | $ | — | Non-operating pension (income)/cost | ||||||||||||||||||||||||||||||||||||||||||||
Effect of settlement loss(a) | $ | (645 | ) | $ | (31,074 | ) | $ | (645 | ) | $ | (31,074 | ) | Selling, general and administrative expenses | Effect of settlement loss(a) | $ | — | $ | (476) | $ | (645) | $ | (31,550) | Non-operating pension (income)/cost | |||||||||||||||||||||||||||||||
Amortization of defined benefit pension items(a) | (8,983 | ) | (9,668 | ) | (18,284 | ) | (19,785 | ) | Non-operating pension (income)/cost | Amortization of defined benefit pension items(a) | (9,068) | (9,540) | (27,352) | (29,325) | Non-operating pension (income)/cost | |||||||||||||||||||||||||||||||||||||||
(9,628 | ) | (40,742 | ) | (18,929 | ) | (50,859 | ) | Income before income taxes | (9,165) | (10,016) | (28,094) | (60,875) | Income before income taxes | |||||||||||||||||||||||||||||||||||||||||
2,419 | 17,224 | 4,758 | 20,966 | Provision for income taxes | 2,357 | 3,935 | 7,115 | 24,901 | Provision for income taxes | |||||||||||||||||||||||||||||||||||||||||||||
$ | (7,209 | ) | $ | (23,518 | ) | $ | (14,171 | ) | $ | (29,893 | ) | Net income | $ | (6,808) | $ | (6,081) | $ | (20,979) | $ | (35,974) | Net income | |||||||||||||||||||||||||||||||||
Total reclassifications for the period | $ | (7,208 | ) | $ | (22,626 | ) | $ | (13,989 | ) | $ | (28,636 | ) | Net income | Total reclassifications for the period | $ | (6,665) | $ | (4,354) | $ | (20,654) | $ | (32,990) | Net income |
(a)See Note 12 for additional details. 20 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) |
Three months ended September 30, 2018 | Three months ended October 1, 2017 | ||||||||||||||||||||||||||||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | ||||||||||||||||||||||||||||||||||||
Foreign currency items | $ | 1,916 | $ | — | $ | 1,916 | $ | 26,928 | $ | — | $ | 26,928 | |||||||||||||||||||||||||||||
Defined benefit pension items: | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | 184 | (31) | 153 | 6,634 | (2,414) | 4,220 | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to net income | 9,165 | (2,357) | 6,808 | 10,016 | (3,935) | 6,081 | |||||||||||||||||||||||||||||||||||
Net other comprehensive income/(loss) from defined benefit pension items | 9,349 | (2,388) | 6,961 | 16,650 | (6,349) | 10,301 | |||||||||||||||||||||||||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | 2,415 | (693) | 1,722 | 2,425 | (859) | 1,566 | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to net income | (201) | 58 | (143) | (2,704) | 977 | (1,727) | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to fixed assets | 80 | — | 80 | (25) | — | (25) | |||||||||||||||||||||||||||||||||||
Net other comprehensive income/(loss) from cash flow hedges | 2,294 | (635) | 1,659 | (304) | 118 | (186) | |||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | $ | 13,559 | $ | (3,023) | $ | 10,536 | $ | 43,274 | $ | (6,231) | $ | 37,043 |
Nine months ended September 30, 2018 | Nine months ended October 1, 2017 | ||||||||||||||||||||||||||||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | ||||||||||||||||||||||||||||||||||||
Foreign currency items | $ | (38,011) | $ | — | $ | (38,011) | $ | 86,769 | $ | — | $ | 86,769 | |||||||||||||||||||||||||||||
Defined benefit pension items: | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | 1,674 | (453) | 1,221 | 25,655 | (3,318) | 22,337 | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to net income | 28,094 | (7,115) | 20,979 | 60,875 | (24,901) | 35,974 | |||||||||||||||||||||||||||||||||||
Net other comprehensive income/(loss) from defined benefit pension items | 29,768 | (7,568) | 22,200 | 86,530 | (28,219) | 58,311 | |||||||||||||||||||||||||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | 784 | (201) | 583 | (1,021) | 367 | (654) | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to net income | (428) | 103 | (325) | (4,656) | 1,672 | (2,984) | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to fixed assets | 136 | — | 136 | (15) | — | (15) | |||||||||||||||||||||||||||||||||||
Net other comprehensive income/(loss) from cash flow hedges | 492 | (98) | 394 | (5,692) | 2,039 | (3,653) | |||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | $ | (7,751) | $ | (7,666) | $ | (15,417) | $ | 167,607 | $ | (26,180) | $ | 141,427 |
Three months ended July 1, 2018 | Three months ended July 2, 2017 | ||||||||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | ||||||||||||||||
Foreign currency items | $ | (62,480 | ) | $ | — | $ | (62,480 | ) | $ | 29,685 | $ | — | $ | 29,685 | |||||||
Defined benefit pension items: | |||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | 2,635 | (422 | ) | 2,213 | 19,168 | (5,975 | ) | 13,193 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to net income | 9,628 | (2,419 | ) | 7,209 | 40,742 | (17,224 | ) | 23,518 | |||||||||||||
Net other comprehensive income/(loss) from defined benefit pension items | 12,263 | (2,841 | ) | 9,422 | 59,910 | (23,199 | ) | 36,711 | |||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | (3,106 | ) | 784 | (2,322 | ) | 602 | (196 | ) | 406 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to net income | (2 | ) | 1 | (1 | ) | (1,389 | ) | 497 | (892 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to fixed assets | 11 | — | 11 | (32 | ) | — | (32 | ) | |||||||||||||
Net other comprehensive income/(loss) from cash flow hedges | (3,097 | ) | 785 | (2,312 | ) | (819 | ) | 301 | (518 | ) | |||||||||||
Other comprehensive income/(loss) | $ | (53,314 | ) | $ | (2,056 | ) | $ | (55,370 | ) | $ | 88,776 | $ | (22,898 | ) | $ | 65,878 |
Six months ended July 1, 2018 | Six months ended July 2, 2017 | ||||||||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | ||||||||||||||||
Foreign currency items | $ | (39,927 | ) | $ | — | $ | (39,927 | ) | $ | 59,841 | $ | — | $ | 59,841 | |||||||
Defined benefit pension items: | |||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | 1,490 | (422 | ) | 1,068 | 19,021 | (904 | ) | 18,117 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to net income | 18,929 | (4,758 | ) | 14,171 | 50,859 | (20,966 | ) | 29,893 | |||||||||||||
Net other comprehensive income/(loss) from defined benefit pension items | 20,419 | (5,180 | ) | 15,239 | 69,880 | (21,870 | ) | 48,010 | |||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | (1,631 | ) | 492 | (1,139 | ) | (3,446 | ) | 1,226 | (2,220 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to net income | (227 | ) | 45 | (182 | ) | (1,952 | ) | 695 | (1,257 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to fixed assets | 56 | — | 56 | 10 | — | 10 | |||||||||||||||
Net other comprehensive income/(loss) from cash flow hedges | (1,802 | ) | 537 | (1,265 | ) | (5,388 | ) | 1,921 | (3,467 | ) | |||||||||||
Other comprehensive income/(loss) | $ | (21,310 | ) | $ | (4,643 | ) | $ | (25,953 | ) | $ | 124,333 | $ | (19,949 | ) | $ | 104,384 |
Consumer Packaging | Display and Packaging | Paper and Industrial Converted Products | Protective Solutions | Total | |||||||||||||||||||||||||
Goodwill at December 31, 2017 | $ | 572,716 | $ | 203,414 | $ | 233,778 | $ | 231,967 | $ | 1,241,875 | |||||||||||||||||||
2018 Acquisitions | 47,193 | — | — | — | 47,193 | ||||||||||||||||||||||||
Foreign currency translation | (7,221) | — | (4,654) | (333) | (12,208) | ||||||||||||||||||||||||
Other | 8,508 | — | — | — | 8,508 | ||||||||||||||||||||||||
Goodwill at September 30, 2018 | $ | 621,196 | $ | 203,414 | $ | 229,124 | $ | 231,634 | $ | 1,285,368 |
Consumer Packaging | Display and Packaging | Paper and Industrial Converted Products | Protective Solutions | Total | |||||||||||||||
Goodwill at December 31, 2017 | $ | 572,716 | $ | 203,414 | $ | 233,778 | $ | 231,967 | $ | 1,241,875 | |||||||||
2018 Acquisitions | 48,387 | — | — | — | 48,387 | ||||||||||||||
Foreign currency translation | (8,715 | ) | — | (4,896 | ) | (333 | ) | (13,944 | ) | ||||||||||
Other | 11,521 | — | — | — | 11,521 | ||||||||||||||
Goodwill at July 1, 2018 | $ | 623,909 | $ | 203,414 | $ | 228,882 | $ | 231,634 | $ | 1,287,839 |
July 1, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | |||||||||||||||||||
Other Intangible Assets, gross: | Other Intangible Assets, gross: | |||||||||||||||||||||
Patents | $ | 21,969 | $ | 21,957 | Patents | $ | 22,114 | $ | 21,957 | |||||||||||||
Customer lists | 535,038 | 497,634 | Customer lists | 537,027 | 497,634 | |||||||||||||||||
Trade names | 26,987 | 25,148 | Trade names | 26,990 | 25,148 | |||||||||||||||||
Proprietary technology | 20,763 | 20,779 | Proprietary technology | 20,764 | 20,779 | |||||||||||||||||
Land use rights | 289 | 298 | Land use rights | 279 | 298 | |||||||||||||||||
Other | 2,133 | 1,740 | Other | 2,135 | 1,740 | |||||||||||||||||
Other Intangible Assets, gross | $ | 607,179 | $ | 567,556 | Other Intangible Assets, gross | $ | 609,309 | $ | 567,556 | |||||||||||||
Accumulated Amortization: | Accumulated Amortization: | |||||||||||||||||||||
Patents | (8,231 | ) | (7,187 | ) | Patents | (8,805) | (7,187) | |||||||||||||||
Customer lists | (227,296 | ) | (210,212 | ) | Customer lists | (237,285) | (210,212) | |||||||||||||||
Trade names | (5,777 | ) | (4,427 | ) | Trade names | (6,405) | (4,427) | |||||||||||||||
Proprietary technology | (14,084 | ) | (13,192 | ) | Proprietary technology | (14,554) | (13,192) | |||||||||||||||
Land use rights | (49 | ) | (47 | ) | Land use rights | (48) | (47) | |||||||||||||||
Other | (1,327 | ) | (1,196 | ) | Other | (1,388) | (1,196) | |||||||||||||||
Total Accumulated Amortization | $ | (256,764 | ) | $ | (236,261 | ) | Total Accumulated Amortization | $ | (268,485) | $ | (236,261) | |||||||||||
Other Intangible Assets, net | $ | 350,415 | $ | 331,295 | Other Intangible Assets, net | $ | 340,824 | $ | 331,295 |
September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||||||||||||||
Long-term debt, net of current portion | $ | 1,312,678 | $ | 1,388,231 | $ | 1,288,002 | $ | 1,426,862 |
July 1, 2018 | December 31, 2017 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Long-term debt, net of current portion | $ | 1,274,325 | $ | 1,369,785 | $ | 1,288,002 | $ | 1,426,862 |
Currency | Action | Quantity | |||||||
Colombian peso | purchase | 1,921,999 | |||||||
Mexican peso | purchase | 167,127 | |||||||
Polish zloty | purchase | 25,763 | |||||||
purchase | 13,123 | ||||||||
purchase | 9,284 | ||||||||
purchase | 2,093 | ||||||||
purchase | 1,326 | ||||||||
New Zealand dollar | sell | ||||||||
Australian dollar | sell | ||||||||
Euro | sell |
Currency | Action | Quantity | |||||||
Colombian peso | purchase | 6,196,372 | |||||||
Mexican peso | purchase | 330,523 | |||||||
Canadian dollar | |||||||||
Saudi Arabian riyal | (4,131) | ||||||||
South African rand | sell | (18,784) |
Description | Balance Sheet Location | July 1, 2018 | December 31, 2017 | Description | Balance Sheet Location | September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||
Commodity Contracts | Commodity Contracts | Prepaid expenses | $ | 205 | $ | 149 | ||||||||||||||||||||||||
Commodity Contracts | Prepaid expenses | $ | 279 | $ | 149 | Commodity Contracts | Other assets | $ | 13 | $ | — | |||||||||||||||||||
Commodity Contracts | Accrued expenses and other | $ | (658 | ) | $ | (1,417 | ) | Commodity Contracts | Accrued expenses and other | $ | (577) | $ | (1,417) | |||||||||||||||||
Commodity Contracts | Other liabilities | $ | (214 | ) | $ | (445 | ) | Commodity Contracts | Other liabilities | $ | (216) | $ | (445) | |||||||||||||||||
Foreign Exchange Contracts | Prepaid expenses | $ | 154 | $ | 2,232 | Foreign Exchange Contracts | Prepaid expenses | $ | 706 | $ | 2,232 | |||||||||||||||||||
Foreign Exchange Contracts | Accrued expenses and other | $ | (1,980 | ) | $ | (1,282 | ) | Foreign Exchange Contracts | Accrued expenses and other | $ | (628) | $ | (1,282) | |||||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||
Foreign Exchange Contracts | Prepaid expenses | $ | 2 | $ | 90 | Foreign Exchange Contracts | Prepaid expenses | $ | 496 | $ | 90 | |||||||||||||||||||
Foreign Exchange Contracts | Accrued expenses and other | $ | (286 | ) | $ | (671 | ) | Foreign Exchange Contracts | Accrued expenses and other | $ | (25) | $ | (671) |
Description | Amount of Gain or (Loss) Recognized in OCI on Derivatives | Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income | Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | |||||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 2,550 | Net sales | $ | 614 | |||||||||||||||||||||||||||||||||||||||
Cost of sales | $ | (260) | ||||||||||||||||||||||||||||||||||||||||||
Commodity Contracts | $ | (135) | Cost of sales | $ | (153) | |||||||||||||||||||||||||||||||||||||||
Three months ended October 1, 2017 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 3,119 | Net sales | $ | 4,814 | |||||||||||||||||||||||||||||||||||||||
Cost of sales | $ | (2,766) | ||||||||||||||||||||||||||||||||||||||||||
Commodity Contracts | $ | (694) | Cost of sales | $ | 656 |
Description | Gain or (Loss) Recognized | Location of Gain or (Loss) Recognized in Income Statement | ||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||
Three months ended September 30, 2018 | ||||||||||||||
Foreign Exchange Contracts | $ | — | Cost of sales | |||||||||||
$ | (1,008) | Selling, general and administrative | ||||||||||||
Three months ended October 1, 2017 | ||||||||||||||
Foreign Exchange Contracts | $ | — | Cost of sales | |||||||||||
$ | (3,172) | Selling, general and administrative |
Description | Amount of Gain or (Loss) Recognized in OCI on Derivatives | Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income | Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | |||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||
Three months ended July 1, 2018 | ||||||||||
Foreign Exchange Contracts | $ | (4,407 | ) | Net sales | $ | (240 | ) | |||
Cost of sales | $ | 174 | ||||||||
Commodity Contracts | $ | 1,301 | Cost of sales | $ | 68 | |||||
Three months ended July 2, 2017 | ||||||||||
Foreign Exchange Contracts | $ | 509 | Net sales | $ | 2,243 | |||||
Cost of sales | $ | (1,317 | ) | |||||||
Commodity Contracts | $ | 93 | Cost of sales | $ | 463 |
Description | Gain or (Loss) Recognized | Location of Gain or (Loss) Recognized in Income Statement | ||||
Derivatives not Designated as Hedging Instruments: | ||||||
Three months ended July 1, 2018 | ||||||
Foreign Exchange Contracts | $ | — | Cost of sales | |||
$ | 1,270 | Selling, general and administrative | ||||
Three months ended July 2, 2017 | ||||||
Foreign Exchange Contracts | $ | — | Cost of sales | |||
$ | 1,665 | Selling, general and administrative |
Three months ended July 1, 2018 | Three months ended July 2, 2017 | Three months ended September 30, 2018 | Three months ended October 1, 2017 | ||||||||||||||||||||||||||||||||||||||||
Description | Revenue | Cost of sales | Revenue | Cost of sales | Description | Revenue | Cost of sales | Revenue | Cost of sales | ||||||||||||||||||||||||||||||||||
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income | Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income | $ | (240 | ) | $ | 242 | $ | 2,243 | $ | (854 | ) | Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income | $ | 614 | $ | (413) | $ | 4,814 | $ | (2,110) | |||||||||||||||||||||||
The effects of cash flow hedging: | The effects of cash flow hedging: | The effects of cash flow hedging: | |||||||||||||||||||||||||||||||||||||||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20: | |||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts: | |||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income | $ | (240 | ) | $ | 174 | $ | 2,243 | $ | (1,317 | ) | |||||||||||||||||||||||||||||||||
Commodity contracts: | |||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income | $ | — | $ | 68 | $ | — | $ | 463 | |||||||||||||||||||||||||||||||||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20: | |||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts: | |||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income | $ | 614 | $ | (260) | $ | 4,814 | $ | (2,766) | |||||||||||||||||||||||||||||||||||
Commodity contracts: | |||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income | $ | — | $ | (153) | $ | — | $ | 656 |
Description | Amount of Gain or (Loss) Recognized in OCI on Derivatives | Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income | Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | |||||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | (211) | Net sales | $ | 1,184 | |||||||||||||||||||||||||||||||||||||||
Cost of sales | $ | (613) | ||||||||||||||||||||||||||||||||||||||||||
Commodity Contracts | $ | 995 | Cost of sales | $ | (143) | |||||||||||||||||||||||||||||||||||||||
Nine months ended October 1, 2017 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 936 | Net sales | $ | 8,097 | |||||||||||||||||||||||||||||||||||||||
Cost of sales | $ | (4,808) | ||||||||||||||||||||||||||||||||||||||||||
Commodity Contracts | $ | (1,957) | Cost of sales | $ | 1,367 |
Description | Gain or (Loss) Recognized | Location of Gain or (Loss) Recognized in Income Statement | ||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||
Nine months ended September 30, 2018 | ||||||||||||||
Foreign Exchange Contracts | $ | — | Cost of sales | |||||||||||
$ | 1,016 | Selling, general and administrative | ||||||||||||
Nine months ended October 1, 2017 | ||||||||||||||
Foreign Exchange Contracts | $ | — | Cost of sales | |||||||||||
$ | (2,074) | Selling, general and administrative |
Description | Amount of Gain or (Loss) Recognized in OCI on Derivatives | Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income | Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | |||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||
Six months ended July 1, 2018 | ||||||||||
Foreign Exchange Contracts | $ | (2,761 | ) | Net sales | $ | 570 | ||||
Cost of sales | $ | (353 | ) | |||||||
Commodity Contracts | $ | 1,130 | Cost of sales | $ | 10 | |||||
Six months ended July 2, 2017 | ||||||||||
Foreign Exchange Contracts | $ | (2,183 | ) | Net sales | $ | 3,283 | ||||
Cost of sales | $ | (2,042 | ) | |||||||
Commodity Contracts | $ | (1,263 | ) | Cost of sales | $ | 711 |
Description | Gain or (Loss) Recognized | Location of Gain or (Loss) Recognized in Income Statement | ||||
Derivatives not Designated as Hedging Instruments: | ||||||
Six months ended July 1, 2018 | ||||||
Foreign Exchange Contracts | $ | — | Cost of sales | |||
$ | 2,024 | Selling, general and administrative | ||||
Six months ended July 2, 2017 | ||||||
Foreign Exchange Contracts | $ | — | Cost of sales | |||
$ | 1,098 | Selling, general and administrative |
Nine months ended September 30, 2018 | Nine months ended October 1, 2017 | ||||||||||||||||||||||||||||||||||||||||||
Six months ended July 1, 2018 | Six months ended July 2, 2017 | ||||||||||||||||||||||||||||||||||||||||||
Description | Revenue | Cost of sales | Revenue | Cost of sales | |||||||||||||||||||||||||||||||||||||||
Description | Description | Revenue | Cost of sales | Revenue | Cost of sales | ||||||||||||||||||||||||||||||||||||||
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income | Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income | $ | 570 | $ | (343 | ) | $ | 3,283 | $ | (1,331 | ) | Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income | $ | 1,184 | $ | (756) | $ | 8,097 | $ | (3,441) | |||||||||||||||||||||||
The effects of cash flow hedging: | The effects of cash flow hedging: | The effects of cash flow hedging: | |||||||||||||||||||||||||||||||||||||||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20: | |||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts: | |||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income | $ | 570 | $ | (353 | ) | $ | 3,283 | $ | (2,042 | ) | |||||||||||||||||||||||||||||||||
Commodity contracts: | |||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income | $ | — | $ | 10 | $ | — | $ | 711 | |||||||||||||||||||||||||||||||||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20: | Gain or (loss) on cash flow hedging relationships in Subtopic 815-20: | ||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts: | Foreign exchange contracts: | ||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income | Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income | $ | 1,184 | $ | (613) | $ | 8,097 | $ | (4,808) | ||||||||||||||||||||||||||||||||||
Commodity contracts: | Commodity contracts: | ||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income | Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income | $ | — | $ | (143) | $ | — | $ | 1,367 |
Level 1 – | Observable inputs such as quoted market prices in active markets; | ||||
Level 2 – | Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and | ||||
Level 3 – | Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Description | September 30, 2018 | Assets measured at NAV | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Hedge derivatives, net: | |||||||||||||||||||||||||||||
Commodity contracts | $ | (575) | $ | — | $ | — | $ | (575) | $ | — | |||||||||||||||||||
Foreign exchange contracts | $ | 78 | $ | — | $ | — | $ | 78 | $ | — | |||||||||||||||||||
Non-hedge derivatives, net: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 471 | $ | — | $ | — | $ | 471 | $ | — | |||||||||||||||||||
Deferred compensation plan assets | $ | 290 | $ | — | $ | 290 | $ | — | $ | — | |||||||||||||||||||
Description | December 31, 2017 | Assets measured at NAV | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Hedge derivatives, net: | |||||||||||||||||||||||||||||
Commodity contracts | $ | (1,713) | $ | — | $ | — | $ | (1,713) | $ | — | |||||||||||||||||||
Foreign exchange contracts | $ | 950 | $ | — | $ | — | $ | 950 | $ | — | |||||||||||||||||||
Non-hedge derivatives, net: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (581) | $ | — | $ | — | $ | (581) | $ | — | |||||||||||||||||||
Deferred compensation plan assets | $ | 268 | $ | — | $ | 268 | $ | — | $ | — |
Description | July 1, 2018 | Assets measured at NAV | Level 1 | Level 2 | Level 3 | ||||||||||||||
Hedge derivatives, net: | |||||||||||||||||||
Commodity contracts | $ | (593 | ) | $ | — | $ | — | $ | (593 | ) | $ | — | |||||||
Foreign exchange contracts | $ | (1,826 | ) | $ | — | $ | — | $ | (1,826 | ) | $ | — | |||||||
Non-hedge derivatives, net: | |||||||||||||||||||
Foreign exchange contracts | $ | (284 | ) | $ | — | $ | — | $ | (284 | ) | $ | — | |||||||
Deferred compensation plan assets | $ | 273 | $ | — | $ | 273 | $ | — | $ | — | |||||||||
Description | December 31, 2017 | Assets measured at NAV | Level 1 | Level 2 | Level 3 | ||||||||||||||
Hedge derivatives, net: | |||||||||||||||||||
Commodity contracts | $ | (1,713 | ) | $ | — | $ | — | $ | (1,713 | ) | $ | — | |||||||
Foreign exchange contracts | $ | 950 | $ | — | $ | — | $ | 950 | $ | — | |||||||||
Non-hedge derivatives, net: | |||||||||||||||||||
Foreign exchange contracts | $ | (581 | ) | $ | — | $ | — | $ | (581 | ) | $ | — | |||||||
Deferred compensation plan assets | $ | 268 | $ | — | $ | 268 | $ | — | $ | — |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, 2018 | October 1, 2017 | September 30, 2018 | October 1, 2017 | |||||||||||||||||||||||||||||||||||
Retirement Plans | ||||||||||||||||||||||||||||||||||||||
Service cost | $ | 4,532 | $ | 4,626 | $ | 13,682 | $ | 13,835 | ||||||||||||||||||||||||||||||
Interest cost | 13,698 | 13,716 | 41,249 | 42,085 | ||||||||||||||||||||||||||||||||||
Expected return on plan assets | (22,740) | (20,297) | (68,529) | (60,833) | ||||||||||||||||||||||||||||||||||
Amortization of prior service cost | 239 | 228 | 730 | 683 | ||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | 9,241 | 9,625 | 27,823 | 29,585 | ||||||||||||||||||||||||||||||||||
Effect of curtailment loss | 97 | — | 97 | — | ||||||||||||||||||||||||||||||||||
Effect of settlement loss | — | 476 | 645 | 31,550 | ||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 5,067 | $ | 8,374 | $ | 15,697 | $ | 56,905 | ||||||||||||||||||||||||||||||
Retiree Health and Life Insurance Plans | ||||||||||||||||||||||||||||||||||||||
Service cost | $ | 73 | $ | 70 | $ | 222 | $ | 234 | ||||||||||||||||||||||||||||||
Interest cost | 115 | 123 | 336 | 347 | ||||||||||||||||||||||||||||||||||
Expected return on plan assets | (222) | (408) | (912) | (1,228) | ||||||||||||||||||||||||||||||||||
Amortization of prior service credit | (124) | (124) | (373) | (374) | ||||||||||||||||||||||||||||||||||
Amortization of net actuarial gain | (288) | (189) | (828) | (569) | ||||||||||||||||||||||||||||||||||
Net periodic benefit income | $ | (446) | $ | (528) | $ | (1,555) | $ | (1,590) |
Three Months Ended | Six Months Ended | |||||||||||||||
July 1, 2018 | July 2, 2017 | July 1, 2018 | July 2, 2017 | |||||||||||||
Retirement Plans | ||||||||||||||||
Service cost | $ | 4,478 | $ | 4,497 | $ | 9,150 | $ | 9,209 | ||||||||
Interest cost | 13,573 | 13,668 | 27,551 | 28,369 | ||||||||||||
Expected return on plan assets | (22,580 | ) | (19,698 | ) | (45,789 | ) | (40,536 | ) | ||||||||
Amortization of prior service cost | 242 | 224 | 491 | 455 | ||||||||||||
Amortization of net actuarial loss | 9,162 | 9,792 | 18,582 | 19,960 | ||||||||||||
Effect of settlement loss | 645 | 31,074 | 645 | 31,074 | ||||||||||||
Net periodic benefit cost | $ | 5,520 | $ | 39,557 | $ | 10,630 | $ | 48,531 | ||||||||
Retiree Health and Life Insurance Plans | ||||||||||||||||
Service cost | $ | 70 | $ | 80 | $ | 149 | $ | 164 | ||||||||
Interest cost | 110 | 104 | 221 | 224 | ||||||||||||
Expected return on plan assets | (218 | ) | (406 | ) | (690 | ) | (820 | ) | ||||||||
Amortization of prior service credit | (123 | ) | (123 | ) | (249 | ) | (250 | ) | ||||||||
Amortization of net actuarial gain | (298 | ) | (225 | ) | (540 | ) | (380 | ) | ||||||||
Net periodic benefit income | $ | (459 | ) | $ | (570 | ) | $ | (1,109 | ) | $ | (1,062 | ) |
September 30, 2018 | January 1, 2018 As adjusted | |||||||||||||
Contract Assets | $ | 50,769 | $ | 45,877 | ||||||||||
Contract Liabilities | $ | (16,135) | $ | (16,513) |
July 1, 2018 | January 1, 2018 As adjusted | |||||||
Contract Assets | $ | 48,765 | $ | 45,877 | ||||
Contract Liabilities | $ | (5,737 | ) | $ | (5,215 | ) |
September 30, 2018 | January 1, 2018 Adjusted | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Asset | Contract Liability | Contract Asset | Contract Liability | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance | $ | 45,877 | $ | (16,513) | $ | — | $ | (11,298) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue deferred or rebates accrued | — | (12,240) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized as revenue or rebate paid to customer | — | 12,618 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increases due to rights to consideration for customer specific goods produced, but not billed during the period | 50,769 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred to receivables from contract assets recognized at the beginning of the period | (45,877) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase as a result of cumulative catch-up arising from changes in the estimate of completion, excluding amounts transferred to receivables during the period | — | 45,877 | (5,215) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of contract asset | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 50,769 | $ | (16,135) | $ | 45,877 | $ | (16,513) |
July 1, 2018 | January 1, 2018 Adjusted | |||||||||||||||
Contract Asset | Contract Liability | Contract Asset | Contract Liability | |||||||||||||
Beginning Balance | $ | 45,877 | $ | (5,215 | ) | $ | — | $ | — | |||||||
Revenue recognized that was included in the contract liabilities balance at the beginning of the period | — | (522 | ) | — | — | |||||||||||
Increases due to rights to consideration for customer specific goods produced, but not billed during the period | 48,765 | — | — | — | ||||||||||||
Transferred to receivables from contract assets recognized at the beginning of the period | (45,877 | ) | — | — | — | |||||||||||
Increase as a result of cumulative catch-up arising from changes in the estimate of completion, excluding amounts transferred to receivables during the period | — | — | 45,877 | (5,215 | ) | |||||||||||
Impairment of contract asset | — | — | — | — | ||||||||||||
Acquired as part of a business combinations | — | — | — | — | ||||||||||||
Ending Balance | $ | 48,765 | $ | (5,737 | ) | $ | 45,877 | $ | (5,215 | ) |
Three Months Ended | Three Months Ended | Consumer Packaging | Display and Packaging | Paper and Industrial Converted Products | Protective Solutions | Three Months Ended | Consumer Packaging | Display and Packaging | Paper and Industrial Converted Products | Protective Solutions | |||||||||||||||||||||||||||||||||||
Primary Geographical Markets: | Primary Geographical Markets: | Primary Geographical Markets: | |||||||||||||||||||||||||||||||||||||||||||
United States | United States | $ | 446,573 | $ | 69,180 | $ | 279,701 | $ | 111,748 | United States | $ | 431,216 | $ | 80,696 | $ | 274,966 | $ | 91,093 | |||||||||||||||||||||||||||
Europe | Europe | 101,954 | 72,377 | 90,398 | 6,816 | Europe | 101,848 | 82,906 | 84,313 | 6,721 | |||||||||||||||||||||||||||||||||||
Canada | Canada | 30,595 | — | 33,762 | — | Canada | 29,427 | — | 33,233 | — | |||||||||||||||||||||||||||||||||||
Other | Other | 36,940 | 1,703 | 70,276 | 14,350 | Other | 37,663 | 1,562 | 71,236 | 37,882 | |||||||||||||||||||||||||||||||||||
Total | Total | $ | 616,062 | $ | 143,260 | $ | 474,137 | $ | 132,914 | Total | $ | 600,154 | $ | 165,164 | $ | 463,748 | $ | 135,696 | |||||||||||||||||||||||||||
Timing of Revenue Recognition: | Timing of Revenue Recognition: | Timing of Revenue Recognition: | |||||||||||||||||||||||||||||||||||||||||||
Products transferred at a point in time | Products transferred at a point in time | $ | 386,850 | $ | 99,233 | $ | 452,576 | $ | 109,636 | Products transferred at a point in time | $ | 368,709 | $ | 124,437 | $ | 438,599 | $ | 117,608 | |||||||||||||||||||||||||||
Products transferred over time | Products transferred over time | 229,212 | 44,027 | 21,561 | 23,278 | Products transferred over time | 231,445 | 40,727 | 25,149 | 18,088 | |||||||||||||||||||||||||||||||||||
Total | $ | 616,062 | $ | 143,260 | $ | 474,137 | $ | 132,914 | Total | $ | 600,154 | $ | 165,164 | $ | 463,748 | $ | 135,696 |
Nine Months Ended | Consumer Packaging | Display and Packaging | Paper and Industrial Converted Products | Protective Solutions | |||||||||||||||||||||||||
Primary Geographical Markets: | |||||||||||||||||||||||||||||
United States | $ | 1,275,775 | $ | 223,760 | $ | 820,429 | $ | 313,341 | |||||||||||||||||||||
Europe | 310,865 | 221,228 | 267,566 | 20,326 | |||||||||||||||||||||||||
Canada | 87,728 | — | 99,868 | — | |||||||||||||||||||||||||
Other | 111,700 | 6,094 | 210,675 | 65,967 | |||||||||||||||||||||||||
Total | $ | 1,786,068 | $ | 451,082 | $ | 1,398,538 | $ | 399,634 | |||||||||||||||||||||
Timing of Revenue Recognition: | |||||||||||||||||||||||||||||
Products transferred at a point in time | $ | 1,101,125 | $ | 325,313 | $ | 1,332,266 | $ | 339,043 | |||||||||||||||||||||
Products transferred over time | 684,943 | 125,769 | 66,272 | 60,591 | |||||||||||||||||||||||||
Total | $ | 1,786,068 | $ | 451,082 | $ | 1,398,538 | $ | 399,634 |
Six Months Ended | Consumer Packaging | Display and Packaging | Paper and Industrial Converted Products | Protective Solutions | ||||||||||||
Primary Geographical Markets: | ||||||||||||||||
United States | $ | 844,559 | $ | 143,064 | $ | 545,463 | $ | 222,248 | ||||||||
Europe | 209,017 | 138,322 | 183,253 | 13,605 | ||||||||||||
Canada | 58,301 | — | 66,635 | — | ||||||||||||
Other | 74,037 | 4,532 | 139,439 | 28,085 | ||||||||||||
Total | $ | 1,185,914 | $ | 285,918 | $ | 934,790 | $ | 263,938 | ||||||||
Timing of Revenue Recognition: | ||||||||||||||||
Products transferred at a point in time | $ | 732,416 | $ | 200,876 | $ | 893,667 | $ | 221,435 | ||||||||
Products transferred over time | 453,498 | 85,042 | 41,123 | 42,503 | ||||||||||||
Total | $ | 1,185,914 | $ | 285,918 | $ | 934,790 | $ | 263,938 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30, 2018 | October 1, 2017 | September 30, 2018 | October 1, 2017 | |||||||||||||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 600,154 | $ | 565,788 | $ | 1,786,068 | $ | 1,569,231 | ||||||||||||||||||||||||||||||
Display and Packaging | 165,164 | 135,560 | 451,082 | 365,807 | ||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 463,748 | 483,376 | 1,398,538 | 1,395,075 | ||||||||||||||||||||||||||||||||||
Protective Solutions | 135,696 | 139,910 | 399,634 | 407,519 | ||||||||||||||||||||||||||||||||||
Consolidated | $ | 1,364,762 | $ | 1,324,634 | $ | 4,035,322 | $ | 3,737,632 | ||||||||||||||||||||||||||||||
Intersegment sales: | ||||||||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 782 | $ | 2,173 | $ | 2,643 | $ | 4,749 | ||||||||||||||||||||||||||||||
Display and Packaging | 1,034 | 679 | 2,196 | 2,253 | ||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 32,828 | 38,791 | 100,804 | 103,844 | ||||||||||||||||||||||||||||||||||
Protective Solutions | 418 | 518 | 1,273 | 1,436 | ||||||||||||||||||||||||||||||||||
Consolidated | $ | 35,062 | $ | 42,161 | $ | 106,916 | $ | 112,282 | ||||||||||||||||||||||||||||||
Operating profit: | ||||||||||||||||||||||||||||||||||||||
Segment operating profit: | ||||||||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 56,014 | $ | 68,922 | $ | 180,772 | $ | 188,758 | ||||||||||||||||||||||||||||||
Display and Packaging | 3,703 | 1,993 | 4,865 | 6,694 | ||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 53,906 | 43,696 | 155,229 | 115,983 | ||||||||||||||||||||||||||||||||||
Protective Solutions | 10,433 | 11,323 | 34,739 | 33,270 | ||||||||||||||||||||||||||||||||||
Restructuring/Asset impairment charges | (22,061) | (511) | (28,691) | (12,519) | ||||||||||||||||||||||||||||||||||
Other, net | (422) | (2,191) | (3,381) | (10,115) | ||||||||||||||||||||||||||||||||||
Consolidated | $ | 101,573 | $ | 123,232 | $ | 343,533 | $ | 322,071 |
Three Months Ended | Six Months Ended | |||||||||||||||
July 1, 2018 | July 2, 2017 | July 1, 2018 | July 2, 2017 | |||||||||||||
Net sales: | ||||||||||||||||
Consumer Packaging | $ | 616,062 | $ | 521,262 | $ | 1,185,914 | $ | 1,003,443 | ||||||||
Display and Packaging | 143,260 | 115,612 | 285,918 | 230,247 | ||||||||||||
Paper and Industrial Converted Products | 474,137 | 469,197 | 934,790 | 911,699 | ||||||||||||
Protective Solutions | 132,914 | 134,603 | 263,938 | 267,609 | ||||||||||||
Consolidated | $ | 1,366,373 | $ | 1,240,674 | $ | 2,670,560 | $ | 2,412,998 | ||||||||
Intersegment sales: | ||||||||||||||||
Consumer Packaging | $ | 1,122 | $ | 1,353 | $ | 1,861 | $ | 2,576 | ||||||||
Display and Packaging | 624 | 824 | 1,162 | 1,574 | ||||||||||||
Paper and Industrial Converted Products | 33,433 | 36,680 | 67,976 | 65,053 | ||||||||||||
Protective Solutions | 282 | 519 | 855 | 918 | ||||||||||||
Consolidated | $ | 35,461 | $ | 39,376 | $ | 71,854 | $ | 70,121 | ||||||||
Operating profit: | ||||||||||||||||
Segment operating profit: | ||||||||||||||||
Consumer Packaging | $ | 63,670 | $ | 60,376 | $ | 124,758 | $ | 119,836 | ||||||||
Display and Packaging | (570 | ) | 1,479 | 1,162 | 4,701 | |||||||||||
Paper and Industrial Converted Products | 61,542 | 45,437 | 101,323 | 72,287 | ||||||||||||
Protective Solutions | 13,626 | 11,016 | 24,306 | 21,947 | ||||||||||||
Restructuring/Asset impairment charges | (3,567 | ) | (7,897 | ) | (6,630 | ) | (12,008 | ) | ||||||||
Other, net | (2,839 | ) | (5,231 | ) | (2,959 | ) | (7,924 | ) | ||||||||
Consolidated | $ | 131,862 | $ | 105,180 | $ | 241,960 | $ | 198,839 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
For the three months ended July 1, 2018 | For the three months ended September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars in thousands, except per share data | GAAP | Restructuring/ Asset Impairment | Other Adjustments(1) | Base | Dollars in thousands, except per share data | GAAP | Restructuring/ Asset Impairment | Other Adjustments(1) | Base | |||||||||||||||||||||||||||||||||||||||||||||||||||
Operating profit | $ | 131,862 | $ | 3,567 | $ | 2,839 | $ | 138,268 | Operating profit | $ | 101,573 | $ | 22,061 | $ | 422 | $ | 124,056 | |||||||||||||||||||||||||||||||||||||||||||
Non-operating pension (income)/costs | 513 | — | (645 | ) | (132 | ) | Non-operating pension (income)/costs | (25) | — | (97) | (122) | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 15,127 | — | — | 15,127 | Interest expense, net | 14,502 | — | — | 14,502 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 116,222 | 3,567 | 3,484 | 123,273 | Income before income taxes | 87,096 | 22,061 | 519 | 109,676 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 30,293 | 1,046 | 1,586 | 32,925 | Provision for income taxes | 18,325 | 5,465 | 2,137 | 25,927 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income before equity in earnings of affiliates | 85,929 | 2,521 | 1,898 | 90,348 | Income before equity in earnings of affiliates | 68,771 | 16,596 | (1,618) | 83,749 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings of affiliates, net of tax | 3,716 | — | — | 3,716 | Equity in earnings of affiliates, net of tax | 4,049 | — | — | 4,049 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 89,645 | 2,521 | 1,898 | 94,064 | Net income | 72,820 | 16,596 | (1,618) | 87,798 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net (income) attributable to noncontrolling interests | (233 | ) | (15 | ) | — | (248 | ) | Net (income) attributable to noncontrolling interests | (405) | (28) | — | (433) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco | $ | 89,412 | $ | 2,506 | $ | 1,898 | $ | 93,816 | Net income attributable to Sonoco | 72,415 | 16,568 | (1,618) | 87,365 | |||||||||||||||||||||||||||||||||||||||||||||||
Per diluted common share* | $ | 0.88 | $ | 0.02 | $ | 0.02 | $ | 0.93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
*Due to rounding individual items may not sum across | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 0.72 | $ | 0.16 | $ | (0.02) | $ | 0.86 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
For the three months ended October 1, 2017 | ||||||||||||||||||||||||||||||||||||||||||||
Dollars in thousands, except per share data | GAAP | Restructuring/ Asset Impairment | Other Adjustments(1) | Base | ||||||||||||||||||||||||||||||||||||||||
Operating profit | $ | 123,232 | $ | 511 | $ | 2,191 | $ | 125,934 | ||||||||||||||||||||||||||||||||||||
Non-operating pension (income)/costs | 3,150 | — | (476) | 2,674 | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 13,647 | — | — | 13,647 | ||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 106,435 | 511 | 2,667 | 109,613 | ||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 35,545 | 445 | (1,080) | 34,910 | ||||||||||||||||||||||||||||||||||||||||
Income before equity in earnings of affiliates | 70,890 | 66 | 3,747 | 74,703 | ||||||||||||||||||||||||||||||||||||||||
Equity in earnings of affiliates, net of tax | 2,521 | — | — | 2,521 | ||||||||||||||||||||||||||||||||||||||||
Net income | 73,411 | 66 | 3,747 | 77,224 | ||||||||||||||||||||||||||||||||||||||||
Net (income) attributable to noncontrolling interests | (599) | (21) | — | (620) | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco | $ | 72,812 | $ | 45 | $ | 3,747 | $ | 76,604 | ||||||||||||||||||||||||||||||||||||
Per diluted common share | $ | 0.72 | $ | — | $ | 0.04 | $ | 0.76 | ||||||||||||||||||||||||||||||||||||
For the three months ended July 2, 2017 | ||||||||||||||||
Dollars in thousands, except per share data | GAAP | Restructuring/ Asset Impairment | Other Adjustments(1) | Base | ||||||||||||
Operating profit | $ | 105,180 | $ | 7,897 | $ | 5,231 | $ | 118,308 | ||||||||
Non-operating pension (income)/costs | 34,410 | — | (31,074 | ) | 3,336 | |||||||||||
Interest expense, net | 12,792 | — | — | 12,792 | ||||||||||||
Income before income taxes | 57,978 | 7,897 | 36,305 | 102,180 | ||||||||||||
Provision for income taxes | 17,167 | 2,338 | 13,147 | 32,652 | ||||||||||||
Income before equity in earnings of affiliates | 40,811 | 5,559 | 23,158 | 69,528 | ||||||||||||
Equity in earnings of affiliates, net of tax | 2,845 | — | — | 2,845 | ||||||||||||
Net income | 43,656 | 5,559 | 23,158 | 72,373 | ||||||||||||
Net (income) attributable to noncontrolling interests | (531 | ) | (12 | ) | — | (543 | ) | |||||||||
Net income attributable to Sonoco | $ | 43,125 | $ | 5,547 | $ | 23,158 | $ | 71,830 | ||||||||
Per diluted common share* | $ | 0.43 | $ | 0.06 | $ | 0.23 | $ | 0.71 | ||||||||
*Due to rounding individual items may not sum across |
($ in millions) | |||||
Volume/mix | $ | 25 | |||
Selling prices | 6 | ||||
Acquisitions | 31 | ||||
Foreign currency translation and other, net | (22) | ||||
Total sales increase | $ | 40 | |||
($ in millions) | |||
Volume/mix | $ | 35 | |
Selling prices | 11 | ||
Acquisitions | 62 | ||
Foreign currency translation and other, net | 18 | ||
Total sales increase | $ | 126 | |
Three Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2018 | October 1, 2017 | % Change | ||||||||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 600,154 | $ | 565,788 | 6.1 | % | ||||||||||||||||||||||||||
Display and Packaging | 165,164 | 135,560 | 21.8 | % | ||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 463,748 | 483,376 | (4.1) | % | ||||||||||||||||||||||||||||
Protective Solutions | 135,696 | 139,910 | (3.0) | % | ||||||||||||||||||||||||||||
Consolidated | $ | 1,364,762 | $ | 1,324,634 | 3.0 | % |
Three Months Ended | |||||||||||
July 1, 2018 | July 2, 2017 | % Change | |||||||||
Net sales: | |||||||||||
Consumer Packaging | $ | 616,062 | $ | 521,262 | 18.2 | % | |||||
Display and Packaging | 143,260 | 115,612 | 23.9 | % | |||||||
Paper and Industrial Converted Products | 474,137 | 469,197 | 1.1 | % | |||||||
Protective Solutions | 132,914 | 134,603 | (1.3 | )% | |||||||
Consolidated | $ | 1,366,373 | $ | 1,240,674 | 10.1 | % |
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||
July 1, 2018 | July 2, 2017 | % Change | September 30, 2018 | October 1, 2017 | % Change | ||||||||||||||||||||||||||||||||||||||
Operating profit: | Operating profit: | ||||||||||||||||||||||||||||||||||||||||||
Segment operating profit: | Segment operating profit: | ||||||||||||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 63,670 | $ | 60,376 | 5.5 | % | Consumer Packaging | $ | 56,014 | $ | 68,922 | (18.7) | % | ||||||||||||||||||||||||||||||
Display and Packaging | (570 | ) | 1,479 | (138.5 | )% | Display and Packaging | 3,703 | 1,993 | 85.8 | % | |||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 61,542 | 45,437 | 35.4 | % | Paper and Industrial Converted Products | 53,906 | 43,696 | 23.4 | % | ||||||||||||||||||||||||||||||||||
Protective Solutions | 13,626 | 11,016 | 23.7 | % | Protective Solutions | 10,433 | 11,323 | (7.9) | % | ||||||||||||||||||||||||||||||||||
Restructuring/Asset impairment charges | (3,567 | ) | (7,897 | ) | Restructuring/Asset impairment charges | (22,061) | (511) | ||||||||||||||||||||||||||||||||||||
Other, net | (2,839 | ) | (5,231 | ) | Other, net | (422) | (2,191) | ||||||||||||||||||||||||||||||||||||
Consolidated | $ | 131,862 | $ | 105,180 | 25.4 | % | Consolidated | $ | 101,573 | $ | 123,232 | (17.6) | % |
Three Months Ended | ||||||||||||||||||||
September 30, 2018 | October 1, 2017 | |||||||||||||||||||
Restructuring/Asset impairment charges: | ||||||||||||||||||||
Consumer Packaging | $ | 4,331 | $ | (1,111) | ||||||||||||||||
Display and Packaging | 15,593 | (2) | ||||||||||||||||||
Paper and Industrial Converted Products | 1,865 | 993 | ||||||||||||||||||
Protective Solutions | 284 | 621 | ||||||||||||||||||
Corporate | (12) | 10 | ||||||||||||||||||
Consolidated | $ | 22,061 | $ | 511 |
Three Months Ended | ||||||||
July 1, 2018 | July 2, 2017 | |||||||
Restructuring/Asset impairment charges: | ||||||||
Consumer Packaging | $ | 1,986 | $ | 3,060 | ||||
Display and Packaging | 677 | 222 | ||||||
Paper and Industrial Converted Products | 64 | 2,914 | ||||||
Protective Solutions | 820 | 1,701 | ||||||
Corporate | 20 | — | ||||||
Consolidated | $ | 3,567 | $ | 7,897 |
For the nine months ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Dollars in thousands, except per share data | GAAP | Restructuring/ Asset Impairment | Other Adjustments(1) | Base | ||||||||||||||||||||||||||||||||||||||||
Operating profit | $ | 343,533 | $ | 28,691 | $ | 3,381 | $ | 375,605 | ||||||||||||||||||||||||||||||||||||
Non-operating pension (income)/costs | 197 | — | (742) | (545) | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 42,984 | — | — | 42,984 | ||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 300,352 | 28,691 | 4,123 | 333,166 | ||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 71,974 | 7,196 | 5,635 | 84,805 | ||||||||||||||||||||||||||||||||||||||||
Income before equity in earnings of affiliates | 228,378 | 21,495 | (1,512) | 248,361 | ||||||||||||||||||||||||||||||||||||||||
Equity in earnings of affiliates, net of tax | 9,012 | — | — | 9,012 | ||||||||||||||||||||||||||||||||||||||||
Net income | 237,390 | 21,495 | (1,512) | 257,373 | ||||||||||||||||||||||||||||||||||||||||
Net (income) attributable to noncontrolling interests | (1,508) | (48) | — | (1,556) | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco | $ | 235,882 | $ | 21,447 | $ | (1,512) | $ | 255,817 | ||||||||||||||||||||||||||||||||||||
Per diluted common share* | $ | 2.34 | $ | 0.21 | $ | (0.01) | $ | 2.53 | ||||||||||||||||||||||||||||||||||||
For the six months ended July 1, 2018 | ||||||||||||||||
Dollars in thousands, except per share data | GAAP | Restructuring/ Asset Impairment | Other Adjustments(1) | Base | ||||||||||||
Operating profit | $ | 241,960 | $ | 6,630 | $ | 2,959 | $ | 251,549 | ||||||||
Non-operating pension (income)/costs | 222 | — | (645 | ) | (423 | ) | ||||||||||
Interest expense, net | 28,482 | — | — | 28,482 | ||||||||||||
Income before income taxes | 213,256 | 6,630 | 3,604 | 223,490 | ||||||||||||
Provision for income taxes | 53,649 | 1,731 | 3,498 | 58,878 | ||||||||||||
Income before equity in earnings of affiliates | 159,607 | 4,899 | 106 | 164,612 | ||||||||||||
Equity in earnings of affiliates, net of tax | 4,963 | — | — | 4,963 | ||||||||||||
Net income | 164,570 | 4,899 | 106 | 169,575 | ||||||||||||
Net (income) attributable to noncontrolling interests | (1,103 | ) | (20 | ) | — | (1,123 | ) | |||||||||
Net income attributable to Sonoco | $ | 163,467 | $ | 4,879 | $ | 106 | $ | 168,452 | ||||||||
Per diluted common share* | $ | 1.62 | $ | 0.05 | $ | 0.00 | $ | 1.67 | ||||||||
*Due to rounding individual items may not sum across |
For the six months ended July 2, 2017 | For the nine months ended October 1, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars in thousands, except per share data | GAAP | Restructuring/ Asset Impairment | Other Adjustments(1) | Base | Dollars in thousands, except per share data | GAAP | Restructuring/ Asset Impairment | Other Adjustments(1) | Base | |||||||||||||||||||||||||||||||||||||||||||||||||||
Operating profit | $ | 198,839 | $ | 12,008 | $ | 7,924 | $ | 218,771 | Operating profit | $ | 322,071 | $ | 12,519 | $ | 10,115 | $ | 344,705 | |||||||||||||||||||||||||||||||||||||||||||
Non-operating pension (income)/costs | 38,096 | — | (31,074 | ) | 7,022 | Non-operating pension (income)/costs | 41,246 | — | (31,550) | 9,696 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 24,850 | — | — | 24,850 | Interest expense, net | 38,497 | — | — | 38,497 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 135,893 | 12,008 | 38,998 | 186,899 | Income before income taxes | 242,328 | 12,519 | 41,665 | 296,512 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 42,706 | 3,636 | 12,506 | 58,848 | Provision for income taxes | 78,251 | 4,081 | 11,422 | 93,754 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income before equity in earnings of affiliates | 93,187 | 8,372 | 26,492 | 128,051 | Income before equity in earnings of affiliates | 164,077 | 8,438 | 30,243 | 202,758 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings of affiliates, net of tax | 4,799 | — | — | 4,799 | Equity in earnings of affiliates, net of tax | 7,320 | — | — | 7,320 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 97,986 | 8,372 | 26,492 | 132,850 | Net income | 171,397 | 8,438 | 30,243 | 210,078 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net (income) attributable to noncontrolling interests | (1,128 | ) | (14 | ) | — | (1,142 | ) | Net (income) attributable to noncontrolling interests | (1,727) | (35) | — | (1,762) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco | $ | 96,858 | $ | 8,358 | $ | 26,492 | $ | 131,708 | Net income attributable to Sonoco | $ | 169,670 | $ | 8,403 | $ | 30,243 | $ | 208,316 | |||||||||||||||||||||||||||||||||||||||||||
Per diluted common share* | $ | 0.96 | $ | 0.08 | $ | 0.26 | $ | 1.31 | Per diluted common share* | $ | 1.68 | $ | 0.08 | $ | 0.30 | $ | 2.07 | |||||||||||||||||||||||||||||||||||||||||||
*Due to rounding individual items may not sum across | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | |||||
Volume/mix | $ | 67 | |||
Selling prices | 40 | ||||
Acquisitions and Divestitures | 152 | ||||
Foreign currency translation and other, net | 39 | ||||
Total sales increase | $ | 298 | |||
($ in millions) | |||
Volume/mix | $ | 42 | |
Selling prices | 34 | ||
Acquisitions and Divestitures | 122 | ||
Foreign currency translation and other, net | 60 | ||
Total sales increase | $ | 258 | |
Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2018 | October 1, 2017 | % Change | ||||||||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 1,786,068 | $ | 1,569,231 | 13.8 | % | ||||||||||||||||||||||||||
Display and Packaging | 451,082 | 365,807 | 23.3 | % | ||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 1,398,538 | 1,395,075 | 0.2 | % | ||||||||||||||||||||||||||||
Protective Solutions | 399,634 | 407,519 | (1.9) | % | ||||||||||||||||||||||||||||
Consolidated | $ | 4,035,322 | $ | 3,737,632 | 8.0 | % |
Six Months Ended | |||||||||||
July 1, 2018 | July 2, 2017 | % Change | |||||||||
Net sales: | |||||||||||
Consumer Packaging | $ | 1,185,914 | $ | 1,003,443 | 18.2 | % | |||||
Display and Packaging | 285,918 | 230,247 | 24.2 | % | |||||||
Paper and Industrial Converted Products | 934,790 | 911,699 | 2.5 | % | |||||||
Protective Solutions | 263,938 | 267,609 | (1.4 | )% | |||||||
Consolidated | $ | 2,670,560 | $ | 2,412,998 | 10.7 | % |
Six Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||
July 1, 2018 | July 2, 2017 | % Change | September 30, 2018 | October 1, 2017 | % Change | ||||||||||||||||||||||||||||||||||||||
Operating profit: | Operating profit: | ||||||||||||||||||||||||||||||||||||||||||
Segment operating profit: | Segment operating profit: | ||||||||||||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 124,758 | $ | 119,836 | 4.1 | % | Consumer Packaging | $ | 180,772 | $ | 188,758 | (4.2) | % | ||||||||||||||||||||||||||||||
Display and Packaging | 1,162 | 4,701 | (75.3 | )% | Display and Packaging | 4,865 | 6,694 | (27.3) | % | ||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 101,323 | 72,287 | 40.2 | % | Paper and Industrial Converted Products | 155,229 | 115,983 | 33.8 | % | ||||||||||||||||||||||||||||||||||
Protective Solutions | 24,306 | 21,947 | 10.7 | % | Protective Solutions | 34,739 | 33,270 | 4.4 | % | ||||||||||||||||||||||||||||||||||
Restructuring/Asset impairment charges | (6,630 | ) | (12,008 | ) | Restructuring/Asset impairment charges | (28,691) | (12,519) | ||||||||||||||||||||||||||||||||||||
Other, net | (2,959 | ) | (7,924 | ) | Other, net | (3,381) | (10,115) | ||||||||||||||||||||||||||||||||||||
Consolidated | $ | 241,960 | $ | 198,839 | 21.7 | % | Consolidated | $ | 343,533 | $ | 322,071 | 6.7 | % |
Six Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||
July 1, 2018 | July 2, 2017 | September 30, 2018 | October 1, 2017 | |||||||||||||||||||||||||||||||
Restructuring/Asset impairment charges: | Restructuring/Asset impairment charges: | |||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 3,715 | $ | 4,160 | Consumer Packaging | $ | 8,046 | $ | 3,049 | |||||||||||||||||||||||||
Display and Packaging | 663 | 723 | Display and Packaging | 16,256 | 721 | |||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 911 | 4,808 | Paper and Industrial Converted Products | 2,776 | 5,801 | |||||||||||||||||||||||||||||
Protective Solutions | 1,098 | 1,854 | Protective Solutions | 1,382 | 2,475 | |||||||||||||||||||||||||||||
Corporate | 243 | 463 | Corporate | 231 | 473 | |||||||||||||||||||||||||||||
Consolidated | $ | 6,630 | $ | 12,008 | Consolidated | $ | 28,691 | $ | 12,519 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | (a) Total Number of Shares Purchased1 | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs2 | (d) Maximum Number of Shares that May Yet be Purchased under the Plans or Programs2 | |||||||||
4/02/18 - 5/06/18 | 5,575 | $ | 51.95 | — | 2,969,611 | ||||||||
5/07/18 - 6/03/2018 | 758 | $ | 52.13 | — | 2,969,611 | ||||||||
6/04/18 - 7/01/2018 | 2,529 | $ | 52.96 | �� | 2,969,611 | ||||||||
Total | 8,862 | $ | 52.26 | — | 2,969,611 |
Period | (a) Total Number of Shares Purchased1 | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs2 | (d) Maximum Number of Shares that May Yet be Purchased under the Plans or Programs2 | ||||||||||||||||||||||
7/02/18 - 8/05/18 | 40,982 | $ | 55.34 | — | 2,969,611 | |||||||||||||||||||||
8/06/18 - 9/02/18 | 526 | $ | 55.92 | — | 2,969,611 | |||||||||||||||||||||
9/3/18 - 9/30/18 | 2,282 | $ | 57.34 | — | 2,969,611 | |||||||||||||||||||||
Total | 43,790 | $ | 55.45 | — | 2,969,611 |
1 | A total of |
2 | On February 10, 2016, the Company's Board of Directors authorized the repurchase of up to 5,000,000 shares of the Company's common stock. A total of 2,030,389 shares were repurchased under this authorization during |
Item 6. | Exhibits. |
Exhibit Index | |||||
SONOCO PRODUCTS COMPANY | ||||||||||||||||||||
(Registrant) | ||||||||||||||||||||
Date: | October 31, 2018 | |||||||||||||||||||
By: | ||||||||||||||||||||
/s/ Barry L. Saunders | ||||||||||||||||||||
Barry L. Saunders | ||||||||||||||||||||
Senior Vice President and Chief Financial Officer | ||||||||||||||||||||
(principal financial officer) | ||||||||||||||||||||
/s/ James W. Kirkland | ||||||||||||||||||||
James W. Kirkland | ||||||||||||||||||||
Corporate Controller | ||||||||||||||||||||
(principal accounting officer) |