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 |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
No par value common stock | SON | New York Stock Exchange, LLC |
Large accelerated filer | 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* | June 30, 2019 | December 31, 2018* | |||||||||||||||||||
Assets | Assets | |||||||||||||||||||||
Current Assets | Current Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 197,691 | $ | 254,912 | Cash and cash equivalents | $ | 96,295 | $ | 120,389 | |||||||||||||
Trade accounts receivable, net of allowances | 768,338 | 725,251 | Trade accounts receivable, net of allowances | 784,907 | 737,420 | |||||||||||||||||
Other receivables | 90,954 | 64,561 | Other receivables | 100,384 | 111,915 | |||||||||||||||||
Inventories, net: | Inventories, net: | |||||||||||||||||||||
Finished and in process | 162,766 | 196,204 | Finished and in process | 178,795 | 174,115 | |||||||||||||||||
Materials and supplies | 308,682 | 277,859 | Materials and supplies | 333,454 | 319,649 | |||||||||||||||||
Prepaid expenses | 46,537 | 44,849 | Prepaid expenses | 85,185 | 55,784 | |||||||||||||||||
1,574,968 | 1,563,636 | 1,579,020 | 1,519,272 | |||||||||||||||||||
Property, Plant and Equipment, Net | 1,167,665 | 1,169,377 | Property, Plant and Equipment, Net | 1,233,615 | 1,233,821 | |||||||||||||||||
Goodwill | 1,287,839 | 1,241,875 | Goodwill | 1,310,638 | 1,309,167 | |||||||||||||||||
Other Intangible Assets, Net | 350,415 | 331,295 | Other Intangible Assets, Net | 328,617 | 352,037 | |||||||||||||||||
Deferred Income Taxes | 49,479 | 62,053 | Deferred Income Taxes | 48,100 | 47,297 | |||||||||||||||||
Right of Use Asset-Operating Leases | Right of Use Asset-Operating Leases | 304,655 | — | |||||||||||||||||||
Other Assets | 192,602 | 189,485 | Other Assets | 140,919 | 121,871 | |||||||||||||||||
Total Assets | $ | 4,622,968 | $ | 4,557,721 | Total Assets | $ | 4,945,564 | $ | 4,583,465 | |||||||||||||
Liabilities and Equity | Liabilities and Equity | |||||||||||||||||||||
Current Liabilities | Current Liabilities | |||||||||||||||||||||
Payable to suppliers | $ | 556,519 | $ | 548,309 | Payable to suppliers | $ | 554,431 | $ | 556,011 | |||||||||||||
Accrued expenses and other | 285,096 | 283,355 | Accrued expenses and other | 348,609 | 322,958 | |||||||||||||||||
Notes payable and current portion of long-term debt | 177,645 | 159,327 | Notes payable and current portion of long-term debt | 357,222 | 195,445 | |||||||||||||||||
Accrued taxes | 10,812 | 8,979 | Accrued taxes | 14,626 | 8,516 | |||||||||||||||||
1,030,072 | 999,970 | 1,274,888 | 1,082,930 | |||||||||||||||||||
Long-term Debt, Net of Current Portion | 1,274,325 | 1,288,002 | Long-term Debt, Net of Current Portion | 1,188,026 | 1,189,717 | |||||||||||||||||
Noncurrent Operating Lease Liabilities | Noncurrent Operating Lease Liabilities | 258,549 | — | |||||||||||||||||||
Pension and Other Postretirement Benefits | 340,602 | 355,187 | Pension and Other Postretirement Benefits | 178,075 | 374,419 | |||||||||||||||||
Deferred Income Taxes | 79,891 | 74,073 | Deferred Income Taxes | 116,569 | 64,273 | |||||||||||||||||
Other Liabilities | 107,813 | 110,429 | Other Liabilities | 75,837 | 99,848 | |||||||||||||||||
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 100,075 and 99,829 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | Authorized 300,000 shares 100,075 and 99,829 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 7,175 | 7,175 | |||||||||||||||||||
Capital in excess of stated value | 332,528 | 330,157 | Capital in excess of stated value | 305,750 | 304,709 | |||||||||||||||||
Accumulated other comprehensive loss | (692,401 | ) | (666,272 | ) | Accumulated other comprehensive loss | (723,846) | (740,913) | |||||||||||||||
Retained earnings | 2,120,529 | 2,036,006 | Retained earnings | 2,251,279 | 2,188,115 | |||||||||||||||||
Total Sonoco Shareholders’ Equity | 1,767,831 | 1,707,066 | Total Sonoco Shareholders’ Equity | 1,840,358 | 1,759,086 | |||||||||||||||||
Noncontrolling Interests | 22,434 | 22,994 | Noncontrolling Interests | 13,262 | 13,192 | |||||||||||||||||
Total Equity | 1,790,265 | 1,730,060 | Total Equity | 1,853,620 | 1,772,278 | |||||||||||||||||
Total Liabilities and Equity | $ | 4,622,968 | $ | 4,557,721 | Total Liabilities and Equity | $ | 4,945,564 | $ | 4,583,465 |
* | 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 | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 1, 2018 | July 2, 2017 | July 1, 2018 | July 2, 2017 | June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 1,366,373 | $ | 1,240,674 | $ | 2,670,560 | $ | 2,412,998 | Net sales | $ | 1,359,721 | $ | 1,366,373 | $ | 2,711,426 | $ | 2,670,560 | |||||||||||||||||||||||||||||||||||||
Cost of sales | 1,089,913 | 1,002,289 | 2,143,498 | 1,951,634 | Cost of sales | 1,084,385 | 1,089,913 | 2,165,969 | 2,143,498 | |||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 276,460 | 238,385 | 527,062 | 461,364 | Gross profit | 275,336 | 276,460 | 545,457 | 527,062 | |||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 141,031 | 125,308 | 278,472 | 250,517 | Selling, general and administrative expenses | 132,213 | 141,031 | 274,774 | 278,472 | |||||||||||||||||||||||||||||||||||||||||||||
Restructuring/Asset impairment charges | 3,567 | 7,897 | 6,630 | 12,008 | Restructuring/Asset impairment charges | 13,355 | 3,567 | 24,027 | 6,630 | |||||||||||||||||||||||||||||||||||||||||||||
Operating profit | 131,862 | 105,180 | 241,960 | 198,839 | Operating profit | 129,768 | 131,862 | 246,656 | 241,960 | |||||||||||||||||||||||||||||||||||||||||||||
Non-operating pension costs | 513 | 34,410 | 222 | 38,096 | Non-operating pension costs | 5,550 | 513 | 11,591 | 222 | |||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 16,217 | 13,823 | 31,012 | 26,908 | Interest expense | 16,798 | 16,217 | 32,830 | 31,012 | |||||||||||||||||||||||||||||||||||||||||||||
Interest income | 1,090 | 1,031 | 2,530 | 2,058 | Interest income | 846 | 1,090 | 1,493 | 2,530 | |||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 116,222 | 57,978 | 213,256 | 135,893 | Income before income taxes | 108,266 | 116,222 | 203,728 | 213,256 | |||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 30,293 | 17,167 | 53,649 | 42,706 | Provision for income taxes | 28,491 | 30,293 | 51,115 | 53,649 | |||||||||||||||||||||||||||||||||||||||||||||
Income before equity in earnings of affiliates | 85,929 | 40,811 | 159,607 | 93,187 | Income before equity in earnings of affiliates | 79,775 | 85,929 | 152,613 | 159,607 | |||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings of affiliates, net of tax | 3,716 | 2,845 | 4,963 | 4,799 | Equity in earnings of affiliates, net of tax | 1,511 | 3,716 | 2,441 | 4,963 | |||||||||||||||||||||||||||||||||||||||||||||
Net income | 89,645 | 43,656 | 164,570 | 97,986 | Net income | 81,286 | 89,645 | 155,054 | 164,570 | |||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (233 | ) | (531 | ) | (1,103 | ) | (1,128 | ) | Net income attributable to noncontrolling interests | (127) | (233) | (232) | (1,103) | |||||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco | $ | 89,412 | $ | 43,125 | $ | 163,467 | $ | 96,858 | Net income attributable to Sonoco | $ | 81,159 | $ | 89,412 | $ | 154,822 | $ | 163,467 | |||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding: | Weighted average common shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 100,568 | 100,258 | 100,482 | 100,184 | Basic | 100,759 | 100,568 | 100,700 | 100,482 | |||||||||||||||||||||||||||||||||||||||||||||
Diluted | 101,040 | 100,717 | 100,965 | 100,849 | Diluted | 101,178 | 101,040 | 101,129 | 100,965 | |||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 0.81 | $ | 0.89 | $ | 1.54 | $ | 1.63 | |||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.88 | $ | 0.43 | $ | 1.62 | $ | 0.96 | Diluted | $ | 0.80 | $ | 0.88 | $ | 1.53 | $ | 1.62 | |||||||||||||||||||||||||||||||||||||
Cash dividends | $ | 0.41 | $ | 0.39 | $ | 0.80 | $ | 0.76 |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 1, 2018 | July 2, 2017 | July 1, 2018 | July 2, 2017 | June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 89,645 | $ | 43,656 | $ | 164,570 | $ | 97,986 | Net income | $ | 81,286 | $ | 89,645 | $ | 155,054 | $ | 164,570 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | Other comprehensive income/(loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (64,587 | ) | 29,526 | (41,604 | ) | 60,362 | Foreign currency translation adjustments | 9,745 | (64,587) | 6,773 | (41,604) | |||||||||||||||||||||||||||||||||||||||||||
Changes in defined benefit plans, net of tax | 9,422 | 36,711 | 15,239 | 48,010 | Changes in defined benefit plans, net of tax | 1,807 | 9,422 | 8,963 | 15,239 | |||||||||||||||||||||||||||||||||||||||||||||
Changes in derivative financial instruments, net of tax | (2,312 | ) | (518 | ) | (1,265 | ) | (3,467 | ) | Changes in derivative financial instruments, net of tax | (481) | (2,312) | 1,383 | (1,265) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss)/income | (57,477 | ) | 65,719 | (27,630 | ) | 104,905 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | Other comprehensive income/(loss) | $ | 11,071 | $ | (57,477) | $ | 17,119 | $ | (27,630) | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 32,168 | 109,375 | 136,940 | 202,891 | Comprehensive income | 92,357 | 32,168 | $ | 172,173 | $ | 136,940 | |||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (233 | ) | (531 | ) | (1,103 | ) | (1,128 | ) | Net income attributable to noncontrolling interests | (127) | (233) | (232) | (1,103) | |||||||||||||||||||||||||||||||||||||||||
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 | (172) | 2,107 | (52) | 1,677 | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to Sonoco | $ | 34,042 | $ | 109,003 | $ | 137,514 | $ | 201,242 | Comprehensive income attributable to Sonoco | $ | 92,058 | $ | 34,042 | $ | 171,889 | $ | 137,514 |
Six Months Ended | ||||||||
July 1, 2018 | July 2, 2017 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 164,570 | $ | 97,986 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Asset impairment | 133 | 1,486 | ||||||
Depreciation, depletion and amortization | 120,402 | 103,649 | ||||||
Share-based compensation expense | 6,122 | 5,682 | ||||||
Equity in earnings of affiliates | (4,963 | ) | (4,799 | ) | ||||
Cash dividends from affiliated companies | 2,750 | 2,685 | ||||||
Net (gain)/loss on disposition of assets | (833 | ) | 285 | |||||
Pension and postretirement plan expense | 17,408 | 55,160 | ||||||
Pension and postretirement plan contributions | (24,146 | ) | (48,511 | ) | ||||
Net increase/(decrease) in deferred taxes | 3,926 | (9,487 | ) | |||||
Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: | ||||||||
Trade accounts receivable | (45,032 | ) | (55,138 | ) | ||||
Inventories | (16,741 | ) | (12,795 | ) | ||||
Payable to suppliers | 16,716 | 11,884 | ||||||
Prepaid expenses | (5,602 | ) | (5,258 | ) | ||||
Accrued expenses | 1,012 | (29,289 | ) | |||||
Income taxes payable and other income tax items | (1,031 | ) | (11,430 | ) | ||||
Other assets and liabilities | 16,557 | 1,068 | ||||||
Net cash provided by operating activities | 251,248 | 103,178 | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchase of property, plant and equipment | (88,852 | ) | (98,819 | ) | ||||
Cost of acquisitions, net of cash acquired | (141,305 | ) | (217,489 | ) | ||||
Proceeds from the sale of assets | 6,164 | 1,973 | ||||||
Investment in affiliates and other, net | 559 | 1,372 | ||||||
Net cash used in investing activities | (223,434 | ) | (312,963 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from issuance of debt | 137,272 | 180,363 | ||||||
Principal repayment of debt | (93,564 | ) | (34,461 | ) | ||||
Net change in commercial paper | (33,000 | ) | 87,000 | |||||
Net (decrease)/increase in outstanding checks | (5,749 | ) | 1,195 | |||||
Cash dividends | (79,801 | ) | (75,604 | ) | ||||
Shares acquired | (4,558 | ) | (5,884 | ) | ||||
Net cash (used in)/provided by financing activities | (79,400 | ) | 152,609 | |||||
Effects of Exchange Rate Changes on Cash | (5,635 | ) | 7,541 | |||||
Net Decrease in Cash and Cash Equivalents | (57,221 | ) | (49,635 | ) | ||||
Cash and cash equivalents at beginning of period | 254,912 | 257,226 | ||||||
Cash and cash equivalents at end of period | $ | 197,691 | $ | 207,591 |
Total Equity | Common Shares | Capital in Excess of Stated Value | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2017 | $ | 1,730,060 | 99,414 | $ | 7,175 | $ | 330,157 | $ | (666,272) | $ | 2,036,006 | $ | 22,994 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 74,925 | 74,055 | 870 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation gain | 22,982 | 22,553 | 429 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit plan adjustment, net of tax | 5,817 | 5,817 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of tax | 1,047 | 1,047 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | $ | 29,846 | $ | 29,417 | $ | 429 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | (39,535) | (39,535) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock awards | 479 | 227 | 479 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased | (4,088) | (78) | (4,088) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 3,048 | 3,048 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of new accounting pronouncements | 1,721 | (176) | 1,897 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
April 1, 2018 | $ | 1,796,456 | 99,563 | $ | 7,175 | $ | 329,596 | $ | (637,031) | $ | 2,072,423 | $ | 24,293 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 89,645 | 89,412 | $ | 233 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation loss: | (64,587) | (62,480) | (2,107) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit plan adjustment, net of tax | 9,422 | 9,422 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of tax | (2,312) | (2,312) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss: | $ | (57,477) | $ | (55,370) | $ | (2,107) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | (41,306) | (41,306) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock awards | 329 | 24 | 329 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased | (471) | (9) | (471) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 3,074 | 3,074 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest from acquisition | 15 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
July 1, 2018 | $ | 1,790,265 | 99,578 | $ | 7,175 | $ | 332,528 | $ | (692,401) | $ | 2,120,529 | $ | 22,434 |
Total Equity | Common Shares | Capital in Excess of Stated Value | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | $ | 1,772,278 | 99,829 | $ | 7,175 | $ | 304,709 | $ | (740,913) | $ | 2,188,115 | $ | 13,192 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 73,768 | 73,663 | 105 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation loss | (2,972) | (2,852) | (120) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit plan adjustment, net of tax | 7,156 | 7,156 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of tax | 1,864 | 1,864 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | $ | 6,048 | $ | 6,168 | $ | (120) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | (41,534) | (41,534) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | (214) | (214) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock awards | 399 | 340 | 399 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased | (7,395) | (133) | (7,395) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 4,560 | 4,560 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of new accounting pronouncements | (6,771) | (6,771) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | $ | 1,801,139 | 100,036 | $ | 7,175 | $ | 302,273 | $ | (734,745) | $ | 2,213,473 | $ | 12,963 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 81,286 | 81,159 | $ | 127 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation gain | 9,745 | 9,573 | 172 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit plan adjustment, net of tax | 1,807 | 1,807 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of tax | (481) | (481) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | $ | 11,071 | $ | 10,899 | $ | 172 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | (43,353) | (43,353) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock awards | 326 | 58 | 326 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased | (1,155) | (19) | (1,155) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 4,306 | 4,306 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | $ | 1,853,620 | 100,075 | $ | 7,175 | $ | 305,750 | $ | (723,846) | $ | 2,251,279 | $ | 13,262 |
Six Months Ended | ||||||||||||||||||||
June 30, 2019 | July 1, 2018 | |||||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||
Net income | $ | 155,054 | $ | 164,570 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Asset impairment | 7,284 | 133 | ||||||||||||||||||
Depreciation, depletion and amortization | 116,978 | 120,402 | ||||||||||||||||||
Share-based compensation expense | 8,866 | 6,122 | ||||||||||||||||||
Equity in earnings of affiliates | (2,441) | (4,963) | ||||||||||||||||||
Cash dividends from affiliated companies | 3,297 | 2,750 | ||||||||||||||||||
Net loss/(gain) on disposition of assets | 3,943 | (833) | ||||||||||||||||||
Pension and postretirement plan expense | 13,647 | 17,408 | ||||||||||||||||||
Pension and postretirement plan contributions | (213,579) | (24,146) | ||||||||||||||||||
Increase in net deferred tax liability | 37,953 | 3,926 | ||||||||||||||||||
Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: | ||||||||||||||||||||
Trade accounts receivable | (46,191) | (45,032) | ||||||||||||||||||
Inventories | (16,825) | (16,741) | ||||||||||||||||||
Payable to suppliers | (2,842) | 16,716 | ||||||||||||||||||
Prepaid expenses | (4,976) | (5,602) | ||||||||||||||||||
Accrued expenses | (7,741) | 1,012 | ||||||||||||||||||
Income taxes payable and other income tax items | (26,990) | (1,031) | ||||||||||||||||||
Other assets and liabilities | 14,644 | 16,557 | ||||||||||||||||||
Net cash provided by operating activities | 40,081 | 251,248 | ||||||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Purchase of property, plant and equipment | (102,272) | (88,852) | ||||||||||||||||||
Cost of acquisitions, net of cash acquired | (455) | (141,305) | ||||||||||||||||||
Proceeds from the sale of assets | 1,498 | 6,164 | ||||||||||||||||||
Investment in affiliates and other, net | 1,301 | 559 | ||||||||||||||||||
Net cash used in investing activities | (99,928) | (223,434) | ||||||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Proceeds from issuance of debt | 243,394 | 137,272 | ||||||||||||||||||
Principal repayment of debt | (81,025) | (93,564) | ||||||||||||||||||
Net change in commercial paper | (18,000) | (33,000) | ||||||||||||||||||
Net decrease in outstanding checks | (11,697) | (5,749) | ||||||||||||||||||
Payment of contingent consideration | (5,000) | — | ||||||||||||||||||
Cash dividends | (84,160) | (79,801) | ||||||||||||||||||
Dividends paid to noncontrolling interests | (214) | — | ||||||||||||||||||
Shares acquired | (8,550) | (4,558) | ||||||||||||||||||
Net cash provided by/(used in) financing activities | 34,748 | (79,400) | ||||||||||||||||||
Effects of Exchange Rate Changes on Cash | 1,005 | (5,635) | ||||||||||||||||||
Net Decrease in Cash and Cash Equivalents | (24,094) | (57,221) | ||||||||||||||||||
Cash and cash equivalents at beginning of period | 120,389 | 254,912 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | 96,295 | $ | 197,691 |
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 |
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 | 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 | 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 |
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 | |
Conitex Sonoco | Compositub | Highland | |||||||||||||||
Trade accounts receivable | $ | (77) | $ | 203 | $ | — | |||||||||||
Inventories | — | 50 | — | ||||||||||||||
Property, plant and equipment | (199) | (1,026) | 1,895 | ||||||||||||||
Goodwill | 1,971 | (566) | (1,895) | ||||||||||||||
Other intangible assets | 300 | 1,888 | — | ||||||||||||||
Accrued expenses and other | (1,782) | (138) | — | ||||||||||||||
Other net tangible assets /(liabilities) | (129) | (40) | — | ||||||||||||||
Additional cash consideration | $ | 84 | $ | 371 | $ | — | |||||||||||
(unaudited) | |||||||
Pro Forma Supplemental Information | Three Months Ended | Six Months Ended | |||||
Consolidated | July 2, 2017 | July 2, 2017 | |||||
Net sales | $ | 1,274,053 | $ | 2,511,516 | |||
Net income attributable to Sonoco | $ | 47,711 | $ | 99,186 | |||
Earnings per share: | |||||||
Pro forma basic | $0.48 | $0.99 | |||||
Pro forma diluted | $0.47 | $ | 0.98 | ||||
(unaudited) | |||||||
Aggregate Supplemental Information | Three Months Ended | Six Months Ended | |||||
Packaging Holdings and Clear Lam | July 2, 2017 | July 2, 2017 | |||||
Actual net sales | $ | 33,379 | $ | 68,219 | |||
Actual net income | $ | 4,503 | $ | 184 | |||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | |||||||||||||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco | $ | 81,159 | $ | 89,412 | $ | 154,822 | $ | 163,467 | ||||||||||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||||||||||||||
Basic | 100,759 | 100,568 | 100,700 | 100,482 | ||||||||||||||||||||||||||||||||||
Dilutive effect of stock-based compensation | 419 | 472 | 429 | 483 | ||||||||||||||||||||||||||||||||||
Diluted | 101,178 | 101,040 | 101,129 | 100,965 | ||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco per common share: | ||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.81 | $ | 0.89 | $ | 1.54 | $ | 1.63 | ||||||||||||||||||||||||||||||
Diluted | $ | 0.80 | $ | 0.88 | $ | 1.53 | $ | 1.62 | ||||||||||||||||||||||||||||||
Cash dividends | $ | 0.43 | $ | 0.41 | $ | 0.84 | $ | 0.80 |
Three Months Ended | Six Months Ended | |||||||||||||||
July 1, 2018 | July 2, 2017 | July 1, 2018 | July 2, 2017 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to Sonoco | $ | 89,412 | $ | 43,125 | $ | 163,467 | $ | 96,858 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 100,568 | 100,258 | 100,482 | 100,184 | ||||||||||||
Dilutive effect of stock-based compensation | 472 | 459 | 483 | 665 | ||||||||||||
Diluted | 101,040 | 100,717 | 100,965 | 100,849 | ||||||||||||
Net income attributable to Sonoco per common share: | ||||||||||||||||
Basic | $ | 0.89 | $ | 0.43 | $ | 1.63 | $ | 0.97 | ||||||||
Diluted | $ | 0.88 | $ | 0.43 | $ | 1.62 | $ | 0.96 |
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 | Six Months Ended | |||||||||||||||||||||||||||||||||||||
June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | |||||||||||||||||||||||||||||||||||
Anti-dilutive stock appreciation rights | 537 | 1,043 | 421 | 891 |
2019 | 2018 | |||||||||||||||||||||||||||||||||||||
Second Quarter | Six Months | Second Quarter | Six Months | |||||||||||||||||||||||||||||||||||
Restructuring/Asset impairment: | ||||||||||||||||||||||||||||||||||||||
2019 Actions | $ | 9,961 | $ | 16,350 | $ | — | $ | — | ||||||||||||||||||||||||||||||
2018 Actions | 3,202 | 7,248 | 2,708 | 4,915 | ||||||||||||||||||||||||||||||||||
2017 and Earlier Actions | 192 | 429 | 859 | 1,715 | ||||||||||||||||||||||||||||||||||
Restructuring/Asset impairment charges | 13,355 | 24,027 | 3,567 | 6,630 | ||||||||||||||||||||||||||||||||||
Income tax benefit | (3,307) | (5,945) | (1,046) | (1,731) | ||||||||||||||||||||||||||||||||||
Less: Costs attributable to noncontrolling interests, net of tax | (69) | (138) | (15) | (20) | ||||||||||||||||||||||||||||||||||
Restructuring/asset impairment charges attributable to Sonoco, net of tax | $ | 9,979 | $ | 17,944 | $ | 2,506 | $ | 4,879 |
2018 | 2017 | |||||||||||||||
Second Quarter | Six Months | Second Quarter | Six Months | |||||||||||||
Restructuring/Asset impairment: | ||||||||||||||||
2018 Actions | $ | 2,708 | $ | 4,915 | $ | — | $ | — | ||||||||
2017 Actions | 1,017 | 1,422 | 3,884 | 6,188 | ||||||||||||
2016 and Earlier Actions | (158 | ) | 293 | 3,675 | 5,482 | |||||||||||
Other asset impairments | — | — | 338 | 338 | ||||||||||||
Restructuring/Asset impairment charges | $ | 3,567 | $ | 6,630 | $ | 7,897 | $ | 12,008 | ||||||||
Income tax benefit | $ | (1,046 | ) | (1,731 | ) | $ | (2,338 | ) | (3,636 | ) | ||||||
Less: Costs attributable to noncontrolling interests, net of tax | (15 | ) | (20 | ) | (12 | ) | (14 | ) | ||||||||
Restructuring/asset impairment charges attributable to Sonoco, net of tax | $ | 2,506 | $ | 4,879 | $ | 5,547 | $ | 8,358 |
2019 Actions | Second Quarter 2019 | Total Incurred to Date | Estimated Total Cost | |||||||||||||||||
Severance and Termination Benefits | ||||||||||||||||||||
Consumer Packaging | $ | 2,866 | $ | 5,855 | $ | 10,315 | ||||||||||||||
Display and Packaging | 57 | 57 | 57 | |||||||||||||||||
Paper and Industrial Converted Products | 1,356 | $ | 1,778 | 1,778 | ||||||||||||||||
Protective Solutions | 340 | 681 | 681 | |||||||||||||||||
Corporate | 196 | 1,922 | 1,922 | |||||||||||||||||
Asset Impairment / Disposal of Assets | ||||||||||||||||||||
Consumer Packaging | 3,884 | 4,196 | 4,196 | |||||||||||||||||
Protective Solutions | 130 | 130 | 130 | |||||||||||||||||
Other Costs | ||||||||||||||||||||
Consumer Packaging | 880 | 1,322 | 2,889 | |||||||||||||||||
Display and Packaging | 236 | 391 | 391 | |||||||||||||||||
Paper and Industrial Converted Products | 13 | 15 | 15 | |||||||||||||||||
Protective Solutions | 3 | 3 | 3 | |||||||||||||||||
Total Charges and Adjustments | $ | 9,961 | $ | 16,350 | $ | 22,377 |
2019 Actions | Severance and Termination Benefits | Asset Impairment/ Disposal of Assets | Other Costs | Total | ||||||||||||||||||||||
Accrual Activity 2019 Year to Date | ||||||||||||||||||||||||||
Liability at December 31, 2018 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
2019 charges | 10,293 | 4,326 | 1,731 | 16,350 | ||||||||||||||||||||||
Cash payments | (5,676) | — | (1,731) | (7,407) | ||||||||||||||||||||||
Asset write downs/disposals | — | (4,326) | — | (4,326) | ||||||||||||||||||||||
Foreign currency translation | 12 | — | — | 12 | ||||||||||||||||||||||
Liability at June 30, 2019 | $ | 4,629 | $ | — | $ | — | $ | 4,629 |
2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
2018 Actions | Second Quarter | Six Months | Second Quarter | Six Months | ||||||||||||||||||||||||||||||||||||||||||||||
Severance and Termination Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 195 | $ | 836 | $ | 906 | $ | 1,694 | $ | 5,535 | $ | 5,535 | ||||||||||||||||||||||||||||||||||||||
Display and Packaging | 150 | 152 | 556 | 731 | 2,092 | 2,092 | ||||||||||||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 28 | 197 | 301 | 1,292 | 3,308 | 3,308 | ||||||||||||||||||||||||||||||||||||||||||||
Protective Solutions | — | (1) | 517 | 776 | 1,074 | 1,074 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | — | 20 | 243 | 243 | 243 | ||||||||||||||||||||||||||||||||||||||||||||
Asset Impairment / Disposal of Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Packaging | 1,611 | 2,618 | 89 | 75 | 5,307 | 5,307 | ||||||||||||||||||||||||||||||||||||||||||||
Display and Packaging | — | 87 | — | — | 4,712 | 4,712 | ||||||||||||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 27 | 253 | — | — | 371 | 371 | ||||||||||||||||||||||||||||||||||||||||||||
Protective Solutions | — | — | 29 | (243) | (243) | (243) | ||||||||||||||||||||||||||||||||||||||||||||
Other Costs | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Packaging | 959 | 2,768 | (6) | 5 | 5,158 | 5,518 | ||||||||||||||||||||||||||||||||||||||||||||
Display and Packaging | 68 | 116 | 3 | 3 | 9,966 | 10,066 | ||||||||||||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 162 | 202 | 293 | 293 | 1,963 | 1,963 | ||||||||||||||||||||||||||||||||||||||||||||
Protective Solutions | 2 | 20 | — | 46 | 66 | 66 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | — | — | — | (11) | (11) | ||||||||||||||||||||||||||||||||||||||||||||
Total Charges and Adjustments | $ | 3,202 | $ | 7,248 | $ | 2,708 | $ | 4,915 | $ | 39,541 | $ | 40,001 |
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 2019 Year to Date | ||||||||||||||||||||||||||
Liability at December 31, 2018 | $ | 3,194 | $ | — | $ | 179 | $ | 3,373 | ||||||||||||||||||
2019 charges | 1,184 | 2,958 | 3,106 | 7,248 | ||||||||||||||||||||||
Cash receipts/(payments) | (3,150) | 494 | (3,175) | (5,831) | ||||||||||||||||||||||
Asset write downs/disposals | — | (3,452) | — | (3,452) | ||||||||||||||||||||||
Foreign currency translation | 1 | — | 5 | 6 | ||||||||||||||||||||||
Liability at June 30, 2019 | $ | 1,229 | $ | — | $ | 115 | $ | 1,344 |
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 | 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 | ||||||||||||
Accrual Activity 2018 Year to Date | ||||||||||||||||
Liability at December 31, 2017 | $ | 3,889 | $ | — | $ | 213 | $ | 4,102 | ||||||||
2018 charges | 1,355 | (1,071 | ) | 1,138 | 1,422 | |||||||||||
Cash receipts/(payments) | (3,052 | ) | 1,841 | (1,434 | ) | (2,645 | ) | |||||||||
Asset write downs/disposals | — | (770 | ) | — | (770 | ) | ||||||||||
Foreign currency translation | (12 | ) | — | 94 | 82 | |||||||||||
Liability at July 1, 2018 | $ | 2,180 | $ | — | $ | 11 | $ | 2,191 |
2019 | 2018 | |||||||||||||||||||||||||||||||||||||
2017 and Earlier Actions | Second Quarter | Six Months | Second Quarter | Six Months | ||||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 92 | $ | 147 | $ | 997 | $ | 1,941 | ||||||||||||||||||||||||||||||
Display and Packaging | — | 83 | 118 | (71) | ||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 14 | 29 | (530) | (674) | ||||||||||||||||||||||||||||||||||
Protective Solutions | 86 | 170 | 274 | 519 | ||||||||||||||||||||||||||||||||||
Corporate | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total charges, net of adjustments | $ | 192 | $ | 429 | $ | 859 | $ | 1,715 |
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 |
Foreign Currency Items | Defined Benefit Pension Items | Gains and Losses on Cash Flow Hedges | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||
Balance at December 31, 2018 | $ | (251,102) | $ | (487,380) | $ | (2,431) | $ | (740,913) | ||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | 6,721 | (5,939) | 1,726 | 2,508 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income | — | 14,902 | (242) | 14,660 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to fixed assets | — | — | (101) | (101) | ||||||||||||||||||||||
Other comprehensive income | 6,721 | 8,963 | 1,383 | 17,067 | ||||||||||||||||||||||
Balance at June 30, 2019 | $ | (244,381) | $ | (478,417) | $ | (1,048) | $ | (723,846) | ||||||||||||||||||
Balance at December 31, 2017 | $ | (198,495) | $ | (467,136) | $ | (641) | $ | (666,272) | ||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | (39,927) | 1,068 | (1,139) | (39,998) | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income | — | 14,171 | (182) | 13,989 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to fixed assets | — | — | 56 | 56 | ||||||||||||||||||||||
Other comprehensive income/(loss) | (39,927) | 15,239 | (1,265) | (25,953) | ||||||||||||||||||||||
Amounts reclassified from retained earnings to accumulated other comprehensive loss | — | — | (176) | (176) | ||||||||||||||||||||||
Balance at July 1, 2018 | $ | (238,422) | $ | (451,897) | $ | (2,082) | $ | (692,401) | ||||||||||||||||||
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 | ) | ||||
Other comprehensive income/(loss) before reclassifications | (1,139 | ) | 1,068 | (39,927 | ) | (39,998 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss to net income | (182 | ) | 14,171 | — | 13,989 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss to fixed assets | 56 | — | — | 56 | ||||||||||||
Other comprehensive income/(loss) | (1,265 | ) | 15,239 | (39,927 | ) | (25,953 | ) | |||||||||
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 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 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income | (1,257 | ) | 29,893 | — | 28,636 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss to fixed assets | 10 | — | — | 10 | ||||||||||||
Other comprehensive income/(loss) | (3,467 | ) | 48,010 | 59,841 | 104,384 | |||||||||||
Balance at July 2, 2017 | $ | (1,528 | ) | $ | (405,811 | ) | $ | (226,657 | ) | $ | (633,996 | ) | ||||
Amount Reclassified from Accumulated Other Comprehensive Loss | Amount Reclassified from Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six 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 | June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | 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 | $ | 532 | $ | (240) | $ | 849 | $ | 570 | Net sales | ||||||||||||||||||||||||||||||||||
Foreign exchange contracts | 174 | (1,317 | ) | (353 | ) | (2,042 | ) | Cost of sales | Foreign exchange contracts | (378) | 174 | (666) | (353) | Cost of sales | ||||||||||||||||||||||||||||||||||||||||
Commodity contracts | 68 | 463 | 10 | 711 | Cost of sales | Commodity contracts | (319) | 68 | 116 | 10 | Cost of sales | |||||||||||||||||||||||||||||||||||||||||||
2 | 1,389 | 227 | 1,952 | Income before income taxes | $ | (165) | $ | 2 | $ | 299 | $ | 227 | Income before income taxes | |||||||||||||||||||||||||||||||||||||||||
(1 | ) | (497 | ) | (45 | ) | (695 | ) | Provision for income taxes | 59 | (1) | (57) | (45) | Provision for income taxes | |||||||||||||||||||||||||||||||||||||||||
$ | 1 | $ | 892 | $ | 182 | $ | 1,257 | Net income | $ | (106) | $ | 1 | $ | 242 | $ | 182 | Net income | |||||||||||||||||||||||||||||||||||||
Defined benefit pension items | Defined benefit pension items | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of settlement loss(a) | $ | (645 | ) | $ | (31,074 | ) | $ | (645 | ) | $ | (31,074 | ) | Selling, general and administrative expenses | Effect of settlement loss(a) | $ | (225) | $ | (645) | $ | (1,547) | $ | (645) | Non-operating pension costs | |||||||||||||||||||||||||||||||
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) | (9,523) | (8,983) | (18,455) | (18,284) | Non-operating pension costs | |||||||||||||||||||||||||||||||||||||||
(9,628 | ) | (40,742 | ) | (18,929 | ) | (50,859 | ) | Income before income taxes | $ | (9,748) | $ | (9,628) | $ | (20,002) | $ | (18,929) | Income before income taxes | |||||||||||||||||||||||||||||||||||||
2,419 | 17,224 | 4,758 | 20,966 | Provision for income taxes | 2,510 | 2,419 | 5,100 | 4,758 | Provision for income taxes | |||||||||||||||||||||||||||||||||||||||||||||
$ | (7,209 | ) | $ | (23,518 | ) | $ | (14,171 | ) | $ | (29,893 | ) | Net income | $ | (7,238) | $ | (7,209) | $ | (14,902) | $ | (14,171) | Net income | |||||||||||||||||||||||||||||||||
Total reclassifications for the period | $ | (7,208 | ) | $ | (22,626 | ) | $ | (13,989 | ) | $ | (28,636 | ) | Net income | Total reclassifications for the period | $ | (7,344) | $ | (7,208) | $ | (14,660) | $ | (13,989) | Net income |
(a) See Note 11 for additional details. 17 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) |
Three months ended June 30, 2019 | Three months ended July 1, 2018 | ||||||||||||||||||||||||||||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | ||||||||||||||||||||||||||||||||||||
Foreign currency items: | |||||||||||||||||||||||||||||||||||||||||
Net other comprehensive income/(loss) from foreign currency items | $ | 9,573 | $ | — | $ | 9,573 | $ | (62,480) | $ | — | $ | (62,480) | |||||||||||||||||||||||||||||
Defined benefit pension items: | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | (6,957) | 1,526 | (5,431) | 2,635 | (422) | 2,213 | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to net income | 9,748 | (2,510) | 7,238 | 9,628 | (2,419) | 7,209 | |||||||||||||||||||||||||||||||||||
Net other comprehensive income/(loss) from defined benefit pension items | 2,791 | (984) | 1,807 | 12,263 | (2,841) | 9,422 | |||||||||||||||||||||||||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | (828) | 297 | (531) | (3,106) | 784 | (2,322) | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to net income | 165 | (59) | 106 | (2) | 1 | (1) | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to fixed assets | (56) | — | (56) | 11 | — | 11 | |||||||||||||||||||||||||||||||||||
Net other comprehensive income/(loss) from cash flow hedges | (719) | 238 | (481) | (3,097) | 785 | (2,312) | |||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | $ | 11,645 | $ | (746) | $ | 10,899 | $ | (53,314) | $ | (2,056) | $ | (55,370) |
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 June 30, 2019 | Six months ended July 1, 2018 | ||||||||||||||||||||||||||||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | ||||||||||||||||||||||||||||||||||||
Foreign currency items: | |||||||||||||||||||||||||||||||||||||||||
Net other comprehensive income/(loss) from foreign currency items | $ | 6,721 | $ | — | $ | 6,721 | $ | (39,927) | $ | — | $ | (39,927) | |||||||||||||||||||||||||||||
Defined benefit pension items: | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | (7,638) | 1,699 | (5,939) | 1,490 | (422) | 1,068 | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to net income | 20,002 | (5,100) | 14,902 | 18,929 | (4,758) | 14,171 | |||||||||||||||||||||||||||||||||||
Net other comprehensive income/(loss) from defined benefit pension items | 12,364 | (3,401) | 8,963 | 20,419 | (5,180) | 15,239 | |||||||||||||||||||||||||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | 2,193 | (467) | 1,726 | (1,631) | 492 | (1,139) | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to net income | (299) | 57 | (242) | (227) | 45 | (182) | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) to fixed assets | (101) | (101) | 56 | — | 56 | ||||||||||||||||||||||||||||||||||||
Net other comprehensive income/(loss) from cash flow hedges | 1,793 | (410) | 1,383 | (1,802) | 537 | (1,265) | |||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | $ | 20,878 | $ | (3,811) | $ | 17,067 | $ | (21,310) | $ | (4,643) | $ | (25,953) |
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, 2018 | $ | 617,332 | $ | 203,414 | $ | 256,947 | $ | 231,474 | $ | 1,309,167 | |||||||||||||||||||
Foreign currency translation | 1,590 | — | 377 | (6) | 1,961 | ||||||||||||||||||||||||
Other | (2,461) | — | 1,971 | — | (490) | ||||||||||||||||||||||||
Goodwill at June 30, 2019 | $ | 616,461 | $ | 203,414 | $ | 259,295 | $ | 231,468 | $ | 1,310,638 |
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 | June 30, 2019 | December 31, 2018 | |||||||||||||||||||
Other Intangible Assets, gross: | Other Intangible Assets, gross: | |||||||||||||||||||||
Patents | $ | 21,969 | $ | 21,957 | Patents | $ | 22,496 | $ | 22,509 | |||||||||||||
Customer lists | 535,038 | 497,634 | Customer lists | 550,003 | 548,038 | |||||||||||||||||
Trade names | 26,987 | 25,148 | Trade names | 31,166 | 31,174 | |||||||||||||||||
Proprietary technology | 20,763 | 20,779 | Proprietary technology | 28,755 | 28,748 | |||||||||||||||||
Land use rights | 289 | 298 | Land use rights | 284 | 282 | |||||||||||||||||
Other | 2,133 | 1,740 | Other | 2,127 | 2,093 | |||||||||||||||||
Other Intangible Assets, gross | $ | 607,179 | $ | 567,556 | Other Intangible Assets, gross | $ | 634,831 | $ | 632,844 | |||||||||||||
Accumulated Amortization: | Accumulated Amortization: | |||||||||||||||||||||
Patents | (8,231 | ) | (7,187 | ) | Patents | (10,604) | (9,539) | |||||||||||||||
Customer lists | (227,296 | ) | (210,212 | ) | Customer lists | (268,123) | (246,946) | |||||||||||||||
Trade names | (5,777 | ) | (4,427 | ) | Trade names | (8,810) | (7,413) | |||||||||||||||
Proprietary technology | (14,084 | ) | (13,192 | ) | Proprietary technology | (17,077) | (15,400) | |||||||||||||||
Land use rights | (49 | ) | (47 | ) | Land use rights | (50) | (48) | |||||||||||||||
Other | (1,327 | ) | (1,196 | ) | Other | (1,550) | (1,461) | |||||||||||||||
Total Accumulated Amortization | $ | (256,764 | ) | $ | (236,261 | ) | Total Accumulated Amortization | $ | (306,214) | $ | (280,807) | |||||||||||
Other Intangible Assets, net | $ | 350,415 | $ | 331,295 | Other Intangible Assets, net | $ | 328,617 | $ | 352,037 |
June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||||||||||||||
Long-term debt, net of current portion | $ | 1,188,026 | $ | 1,295,115 | $ | 1,189,717 | $ | 1,270,521 |
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 | 8,090,286 | |||||||
Mexican peso | purchase | 355,994 | |||||||
purchase | 31,576 | ||||||||
purchase | 25,074 | ||||||||
purchase | 23,587 | ||||||||
purchase | 3,311 | ||||||||
purchase | 333 | ||||||||
sell | |||||||||
Euro | (6,995) | ||||||||
Russian ruble | sell | (113,055) |
Currency | Action | Quantity | |||||||
Colombian peso | purchase | 10,371,390 | |||||||
Mexican peso | purchase | 407,604 | |||||||
Canadian dollar | |||||||||
South African rand | sell | (7,000) |
Description | Balance Sheet Location | June 30, 2019 | December 31, 2018 | |||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Commodity Contracts | Prepaid expenses | $ | — | $ | 282 | |||||||||||||||
Commodity Contracts | Accrued expenses and other | $ | (2,131) | $ | (1,843) | |||||||||||||||
Commodity Contracts | Other liabilities | $ | (220) | $ | (10) | |||||||||||||||
Foreign Exchange Contracts | Prepaid expenses | $ | 1,238 | $ | 770 | |||||||||||||||
Foreign Exchange Contracts | Accrued expenses and other | $ | (373) | $ | (2,482) | |||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign Exchange Contracts | Prepaid expenses | $ | — | $ | 727 | |||||||||||||||
Foreign Exchange Contracts | Other assets | $ | 696 | $ | — | |||||||||||||||
Foreign Exchange Contracts | Accrued expenses and other | $ | (9) | $ | (561) | |||||||||||||||
Description | Balance Sheet Location | July 1, 2018 | December 31, 2017 | |||||||
Derivatives designated as hedging instruments: | ||||||||||
Commodity Contracts | Prepaid expenses | $ | 279 | $ | 149 | |||||
Commodity Contracts | Accrued expenses and other | $ | (658 | ) | $ | (1,417 | ) | |||
Commodity Contracts | Other liabilities | $ | (214 | ) | $ | (445 | ) | |||
Foreign Exchange Contracts | Prepaid expenses | $ | 154 | $ | 2,232 | |||||
Foreign Exchange Contracts | Accrued expenses and other | $ | (1,980 | ) | $ | (1,282 | ) | |||
Derivatives not designated as hedging instruments: | ||||||||||
Foreign Exchange Contracts | Prepaid expenses | $ | 2 | $ | 90 | |||||
Foreign Exchange Contracts | Accrued expenses and other | $ | (286 | ) | $ | (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 June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 928 | Net sales | $ | 532 | |||||||||||||||||||||||||||||||||||||||
Cost of sales | $ | (378) | ||||||||||||||||||||||||||||||||||||||||||
Commodity Contracts | $ | (1,756) | Cost of sales | $ | (319) | |||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||
Description | Gain or (Loss) Recognized | Location of Gain or (Loss) Recognized in Income Statement | ||||||||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||||||||
Three months ended June 30, 2019 | ||||||||||||||||||||
Foreign Exchange Contracts | $ | — | Cost of sales | |||||||||||||||||
$ | 893 | Selling, general and administrative | ||||||||||||||||||
Three months ended July 1, 2018 | ||||||||||||||||||||
Foreign Exchange Contracts | $ | — | Cost of sales | |||||||||||||||||
$ | 1,270 | 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 June 30, 2019 | Three months ended July 1, 2018 | ||||||||||||||||||||||||||||||||||||||||||
Three months ended July 1, 2018 | Three 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 | $ | (240 | ) | $ | 242 | $ | 2,243 | $ | (854 | ) | Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income | $ | 532 | $ | (697) | $ | (240) | $ | 242 | |||||||||||||||||||||||
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: | 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 | $ | 532 | $ | (378) | $ | (240) | $ | 174 | ||||||||||||||||||||||||||||||||||
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 | $ | — | $ | (319) | $ | — | $ | 68 |
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 June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 2,858 | Net sales | $ | 849 | |||||||||||||||||||||||||||||||||||||||
Cost of sales | $ | (666) | ||||||||||||||||||||||||||||||||||||||||||
Commodity Contracts | $ | (664) | Cost of sales | $ | 116 | |||||||||||||||||||||||||||||||||||||||
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 |
Description | Gain or (Loss) Recognized | Location of Gain or (Loss) Recognized in Income Statement | ||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||
Foreign Exchange Contracts | $ | — | Cost of sales | |||||||||||
$ | (571) | Selling, general and administrative | ||||||||||||
Six months ended July 1, 2018 | ||||||||||||||
Foreign Exchange Contracts | $ | — | Cost of sales | |||||||||||
$ | 2,024 | 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 |
Six months ended June 30, 2019 | Six months ended July 1, 2018 | ||||||||||||||||||||||||||||||||||||||||||
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 | $ | 849 | $ | (550) | $ | 570 | $ | (343) | |||||||||||||||||||||||
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 | $ | 849 | $ | (666) | $ | 570 | $ | (353) | ||||||||||||||||||||||||||||||||||
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 | $ | — | $ | 116 | $ | — | $ | 10 |
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 | June 30, 2019 | Assets measured at NAV | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Hedge derivatives, net: | |||||||||||||||||||||||||||||
Commodity contracts | $ | (2,351) | $ | — | $ | — | $ | (2,351) | $ | — | |||||||||||||||||||
Foreign exchange contracts | $ | 865 | $ | — | $ | — | $ | 865 | $ | — | |||||||||||||||||||
Non-hedge derivatives, net: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 687 | $ | — | $ | — | $ | 687 | $ | — | |||||||||||||||||||
Deferred compensation plan assets | $ | 135 | $ | — | $ | 135 | $ | — | $ | — | |||||||||||||||||||
Description | December 31, 2018 | Assets measured at NAV | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Hedge derivatives, net: | |||||||||||||||||||||||||||||
Commodity contracts | $ | (1,571) | $ | — | $ | — | $ | (1,571) | $ | — | |||||||||||||||||||
Foreign exchange contracts | $ | (1,712) | $ | — | $ | — | $ | (1,712) | $ | — | |||||||||||||||||||
Non-hedge derivatives, net: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 166 | $ | — | $ | — | $ | 166 | $ | — | |||||||||||||||||||
Deferred compensation plan assets | $ | 260 | $ | — | $ | 260 | $ | — | $ | — |
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 | Six Months Ended | |||||||||||||||||||||||||||||||||||||
June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | |||||||||||||||||||||||||||||||||||
Retirement Plans | ||||||||||||||||||||||||||||||||||||||
Service cost | $ | 962 | $ | 4,478 | $ | 1,903 | $ | 9,150 | ||||||||||||||||||||||||||||||
Interest cost | 15,100 | 13,573 | 30,043 | 27,551 | ||||||||||||||||||||||||||||||||||
Expected return on plan assets | (19,232) | (22,580) | (38,329) | (45,789) | ||||||||||||||||||||||||||||||||||
Amortization of prior service cost | 216 | 242 | 430 | 491 | ||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | 9,646 | 9,162 | 18,680 | 18,582 | ||||||||||||||||||||||||||||||||||
Effect of settlement loss | 225 | 645 | 1,547 | 645 | ||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 6,917 | $ | 5,520 | $ | 14,274 | $ | 10,630 | ||||||||||||||||||||||||||||||
Retiree Health and Life Insurance Plans | ||||||||||||||||||||||||||||||||||||||
Service cost | $ | 78 | $ | 70 | $ | 152 | $ | 149 | ||||||||||||||||||||||||||||||
Interest cost | 113 | 110 | 231 | 221 | ||||||||||||||||||||||||||||||||||
Expected return on plan assets | (179) | (218) | (356) | (690) | ||||||||||||||||||||||||||||||||||
Amortization of prior service credit | (124) | (123) | (247) | (249) | ||||||||||||||||||||||||||||||||||
Amortization of net actuarial gain | (215) | (298) | (408) | (540) | ||||||||||||||||||||||||||||||||||
Net periodic benefit income | $ | (327) | $ | (459) | $ | (628) | $ | (1,109) |
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 | ) |
Classification | Balance Sheet Location | June 30, 2019 | ||||||||||||
Lease Assets | ||||||||||||||
Operating lease assets | Right of Use Asset - Operating Leases | $ | 304,655 | |||||||||||
Finance lease assets | Other Assets | 20,275 | ||||||||||||
Total lease assets | 324,930 | |||||||||||||
Lease Liabilities | ||||||||||||||
Current operating lease liabilities | Accrued expenses and other | 55,210 | ||||||||||||
Current finance lease liabilities | Notes payable and current portion of debt | 9,508 | ||||||||||||
Total current lease liabilities | 64,718 | |||||||||||||
Noncurrent operating lease liabilities | Noncurrent Operating Lease Liabilities | 258,549 | ||||||||||||
Noncurrent finance lease liabilities | Long-term Debt, Net of Current Portion | 9,563 | ||||||||||||
Total noncurrent lease liabilities | 268,112 | |||||||||||||
Total lease liabilities | $ | 332,830 |
Lease Cost | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||||||
Operating lease cost | (a) | $ | 15,771 | $ | 31,316 | ||||||
Finance lease cost: | |||||||||||
Amortization of lease asset | (a) (b) | 2,053 | 4,122 | ||||||||
Interest on lease liabilities | (c) | 245 | 521 | ||||||||
Variable lease cost | (a) (d) | 7,791 | 16,969 | ||||||||
Total lease cost | $ | 25,860 | $ | 52,928 |
Maturity of Lease Liabilities | Operating Leases | Finance Leases | Total | |||||||||||||||||
2019 (excluding six months ended June 30, 2019) | $ | 30,472 | $ | 5,031 | $ | 35,503 | ||||||||||||||
2020 | 54,945 | 8,723 | 63,668 | |||||||||||||||||
2021 | 47,075 | 3,165 | 50,240 | |||||||||||||||||
2022 | 41,259 | 1,644 | 42,903 | |||||||||||||||||
2023 | 37,895 | 994 | 38,889 | |||||||||||||||||
Beyond 2023 | 188,730 | 843 | 189,573 | |||||||||||||||||
Total lease payments | $ | 400,376 | $ | 20,400 | $ | 420,776 | ||||||||||||||
Less: Interest | 86,617 | 1,329 | 87,946 | |||||||||||||||||
Lease Liabilities | $ | 313,759 | $ | 19,071 | $ | 332,830 |
Period | Minimum Future Rental Commitments | |||||||
2019 | $ | 48,200 | ||||||
2020 | 41,700 | |||||||
2021 | 32,500 | |||||||
2022 | 27,300 | |||||||
2023 | 21,400 | |||||||
Beyond 2023 | 92,300 |
Lease Term and Discount Rate | As of June 30, 2019 | ||||||||||
Weighted-average remaining lease term (years): | |||||||||||
Operating leases | 11.2 | ||||||||||
Finance leases | 2.8 | ||||||||||
Weighted-average discount rate: | |||||||||||
Operating leases | 4.92% | ||||||||||
Finance leases | 5.08% | ||||||||||
Other Information | Six Months Ended June 30, 2019 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows used by operating leases | $ | 31,482 | |||||||||
Operating cash flows used by finance leases | $ | 521 | |||||||||
Financing cash flows used by finance leases | $ | 4,575 | |||||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | 8,820 | |||||||||
Leased assets obtained in exchange for new finance lease liabilities | $ | 104 |
June 30, 2019 | December 31, 2018 | |||||||||||||
Contract Assets | $ | 53,085 | $ | 48,786 | ||||||||||
Contract Liabilities | $ | (18,074) | $ | (18,533) |
July 1, 2018 | January 1, 2018 As adjusted | |||||||
Contract Assets | $ | 48,765 | $ | 45,877 | ||||
Contract Liabilities | $ | (5,737 | ) | $ | (5,215 | ) |
June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Asset | Contract Liability | Contract Asset | Contract Liability | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance | $ | 48,786 | $ | (18,533) | $ | 45,877 | $ | (17,736) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue deferred or rebates accrued | — | (16,458) | — | (19,730) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized as revenue | 3,091 | 1,652 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rebates paid to customers | — | 13,826 | — | 17,281 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increases due to rights to consideration for customer specific goods produced, but not billed during the period | 54,570 | — | 48,786 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred to receivables from contract assets recognized at the beginning of the period | (50,271) | — | (45,877) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 53,085 | $ | (18,074) | $ | 48,786 | $ | (18,533) |
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 | Consumer Packaging | Display and Packaging | Paper and Industrial Converted Products | Protective Solutions | ||||||||||||
Primary Geographical Markets: | ||||||||||||||||
United States | $ | 446,573 | $ | 69,180 | $ | 279,701 | $ | 111,748 | ||||||||
Europe | 101,954 | 72,377 | 90,398 | 6,816 | ||||||||||||
Canada | 30,595 | — | 33,762 | — | ||||||||||||
Other | 36,940 | 1,703 | 70,276 | 14,350 | ||||||||||||
Total | $ | 616,062 | $ | 143,260 | $ | 474,137 | $ | 132,914 | ||||||||
Timing of Revenue Recognition: | ||||||||||||||||
Products transferred at a point in time | $ | 386,850 | $ | 99,233 | $ | 452,576 | $ | 109,636 | ||||||||
Products transferred over time | 229,212 | 44,027 | 21,561 | 23,278 | ||||||||||||
Total | $ | 616,062 | $ | 143,260 | $ | 474,137 | $ | 132,914 |
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 June 30, 2019 | Consumer Packaging | Display and Packaging | Paper and Industrial Converted Products | Protective Solutions | Total | ||||||||||||||||||||||||||||||
Primary Geographical Markets: | |||||||||||||||||||||||||||||||||||
United States | $ | 436,896 | $ | 62,097 | $ | 268,890 | $ | 104,058 | $ | 871,941 | |||||||||||||||||||||||||
Europe | 99,007 | 71,564 | 87,958 | 5,595 | 264,124 | ||||||||||||||||||||||||||||||
Canada | 28,839 | — | 29,903 | — | 58,742 | ||||||||||||||||||||||||||||||
Asia Pacific | 17,445 | — | 69,588 | 516 | 87,549 | ||||||||||||||||||||||||||||||
Other | 20,563 | 1,172 | 34,989 | 20,641 | 77,365 | ||||||||||||||||||||||||||||||
Total | $ | 602,750 | $ | 134,833 | $ | 491,328 | $ | 130,810 | $ | 1,359,721 | |||||||||||||||||||||||||
Timing of Revenue Recognition: | |||||||||||||||||||||||||||||||||||
Products transferred at a point in time | $ | 343,324 | $ | 60,450 | $ | 472,363 | $ | 111,208 | $ | 987,345 | |||||||||||||||||||||||||
Products transferred over time | 259,426 | 74,383 | 18,965 | 19,602 | 372,376 | ||||||||||||||||||||||||||||||
Total | $ | 602,750 | $ | 134,833 | $ | 491,328 | $ | 130,810 | $ | 1,359,721 | |||||||||||||||||||||||||
Three months ended July 1, 2018 | Consumer Packaging | Display and Packaging | Paper and Industrial Converted Products | Protective Solutions | Total | ||||||||||||||||||||||||||||||
Primary Geographical Markets: | |||||||||||||||||||||||||||||||||||
United States | $ | 446,573 | $ | 69,180 | $ | 279,752 | $ | 103,777 | $ | 899,282 | |||||||||||||||||||||||||
Europe | 101,953 | 72,377 | 90,398 | 6,816 | 271,544 | ||||||||||||||||||||||||||||||
Canada | 30,595 | — | 33,762 | — | 64,357 | ||||||||||||||||||||||||||||||
Asia Pacific | 16,713 | — | 35,689 | 903 | 53,305 | ||||||||||||||||||||||||||||||
Other | 20,228 | 1,703 | 34,536 | 21,418 | 77,885 | ||||||||||||||||||||||||||||||
Total | $ | 616,062 | $ | 143,260 | $ | 474,137 | $ | 132,914 | $ | 1,366,373 | |||||||||||||||||||||||||
Timing of Revenue Recognition1: | |||||||||||||||||||||||||||||||||||
Products transferred at a point in time | $ | 376,406 | $ | 68,324 | $ | 452,576 | $ | 109,636 | $ | 1,006,942 | |||||||||||||||||||||||||
Products transferred over time | 239,656 | 74,936 | 21,561 | 23,278 | 359,431 | ||||||||||||||||||||||||||||||
Total | $ | 616,062 | $ | 143,260 | $ | 474,137 | $ | 132,914 | $ | 1,366,373 |
Six months ended June 30, 2019 | Consumer Packaging | Display and Packaging | Paper and Industrial Converted Products | Protective Solutions | Total | ||||||||||||||||||||||||
Primary Geographical Markets: | |||||||||||||||||||||||||||||
United States | $ | 853,296 | $ | 127,659 | $ | 537,456 | $ | 205,236 | $ | 1,723,647 | |||||||||||||||||||
Europe | 207,219 | 141,807 | 178,663 | 11,462 | 539,151 | ||||||||||||||||||||||||
Canada | 56,139 | — | 62,736 | — | 118,875 | ||||||||||||||||||||||||
Asia | 33,358 | — | 138,648 | 1,436 | 173,442 | ||||||||||||||||||||||||
Other | 42,454 | 2,921 | 69,862 | 41,074 | 156,311 | ||||||||||||||||||||||||
Total | $ | 1,192,466 | $ | 272,387 | $ | 987,365 | $ | 259,208 | $ | 2,711,426 | |||||||||||||||||||
Timing of Revenue Recognition: | |||||||||||||||||||||||||||||
Products transferred at a point in time | $ | 671,820 | $ | 128,826 | $ | 951,843 | $ | 219,105 | $ | 1,971,594 | |||||||||||||||||||
Products transferred over time | 520,646 | 143,561 | 35,522 | 40,103 | 739,832 | ||||||||||||||||||||||||
Total | $ | 1,192,466 | $ | 272,387 | $ | 987,365 | $ | 259,208 | $ | 2,711,426 |
Six months ended July 1, 2018 | Consumer Packaging | Display and Packaging | Paper and Industrial Converted Products | Protective Solutions | Total | ||||||||||||||||||||||||
Primary Geographical Markets: | |||||||||||||||||||||||||||||
United States | $ | 844,559 | $ | 143,064 | $ | 545,464 | $ | 205,848 | $ | 1,738,935 | |||||||||||||||||||
Europe | 209,017 | 138,322 | 183,253 | 13,605 | 544,197 | ||||||||||||||||||||||||
Canada | 58,301 | — | 66,635 | — | 124,936 | ||||||||||||||||||||||||
Asia | 33,203 | — | 70,998 | 1,891 | 106,092 | ||||||||||||||||||||||||
Other | 40,834 | 4,532 | 68,440 | 42,594 | 156,400 | ||||||||||||||||||||||||
Total | $ | 1,185,914 | $ | 285,918 | $ | 934,790 | $ | 263,938 | $ | 2,670,560 | |||||||||||||||||||
Timing of Revenue Recognition1: | |||||||||||||||||||||||||||||
Products transferred at a point in time | $ | 712,113 | $ | 142,898 | $ | 893,667 | $ | 221,435 | $ | 1,970,113 | |||||||||||||||||||
Products transferred over time | 473,801 | 143,020 | 41,123 | 42,503 | 700,447 | ||||||||||||||||||||||||
Total | $ | 1,185,914 | $ | 285,918 | $ | 934,790 | $ | 263,938 | $ | 2,670,560 |
Consumer Packaging | Display and Packaging | ||||||||||||||||||||||||||||||||||
As Originally Reported | Adjustment | As Revised | As Originally Reported | Adjustment | As Revised | ||||||||||||||||||||||||||||||
Products transferred at a point in time | |||||||||||||||||||||||||||||||||||
Three months ended September 30, 2018 | $ | 368,709 | $ | (10,476) | $ | 358,233 | $ | 124,437 | $ | (45,198) | $ | 79,239 | |||||||||||||||||||||||
Nine months ended September 30, 2018 | 1,101,125 | (30,779) | 1,070,346 | 325,313 | (103,176) | 222,137 | |||||||||||||||||||||||||||||
Year ended December 31, 2018 | 1,440,662 | (41,837) | 1,398,825 | 248,034 | 41,837 | 289,871 | |||||||||||||||||||||||||||||
Products transferred over time | |||||||||||||||||||||||||||||||||||
Three months ended September 30, 2018 | $ | 231,445 | $ | 10,476 | $ | 241,921 | $ | 40,727 | $ | 45,198 | $ | 85,925 | |||||||||||||||||||||||
Nine months ended September 30, 2018 | 684,943 | 30,779 | 715,722 | 125,769 | 103,176 | 228,945 | |||||||||||||||||||||||||||||
Year ended December 31, 2018 | 919,337 | 41,837 | 961,174 | 344,275 | (41,837) | 302,438 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | |||||||||||||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 602,750 | $ | 616,062 | $ | 1,192,466 | $ | 1,185,914 | ||||||||||||||||||||||||||||||
Display and Packaging | 134,833 | 143,260 | 272,387 | 285,918 | ||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 491,328 | 474,137 | 987,365 | 934,790 | ||||||||||||||||||||||||||||||||||
Protective Solutions | 130,810 | 132,914 | 259,208 | 263,938 | ||||||||||||||||||||||||||||||||||
Consolidated | $ | 1,359,721 | $ | 1,366,373 | $ | 2,711,426 | $ | 2,670,560 | ||||||||||||||||||||||||||||||
Intersegment sales: | ||||||||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 1,122 | $ | 1,122 | $ | 2,043 | $ | 1,861 | ||||||||||||||||||||||||||||||
Display and Packaging | 1,114 | 624 | 2,281 | 1,162 | ||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 31,535 | 33,433 | 65,189 | 67,976 | ||||||||||||||||||||||||||||||||||
Protective Solutions | 363 | 282 | 825 | 855 | ||||||||||||||||||||||||||||||||||
Consolidated | $ | 34,134 | $ | 35,461 | $ | 70,338 | $ | 71,854 | ||||||||||||||||||||||||||||||
Operating profit: | ||||||||||||||||||||||||||||||||||||||
Segment operating profit: | ||||||||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 62,942 | $ | 63,670 | $ | 125,057 | $ | 124,758 | ||||||||||||||||||||||||||||||
Display and Packaging | 5,889 | (570) | 12,343 | 1,162 | ||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 61,229 | 61,542 | 109,616 | 101,323 | ||||||||||||||||||||||||||||||||||
Protective Solutions | 14,275 | 13,626 | 25,279 | 24,306 | ||||||||||||||||||||||||||||||||||
Restructuring/Asset impairment charges | (13,355) | (3,567) | (24,027) | (6,630) | ||||||||||||||||||||||||||||||||||
Other, net | (1,212) | (2,839) | (1,612) | (2,959) | ||||||||||||||||||||||||||||||||||
Consolidated | $ | 129,768 | $ | 131,862 | $ | 246,656 | $ | 241,960 |
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 June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Dollars in thousands, except per share data | GAAP | Restructuring/ Asset Impairment | Other Adjustments(1) | Base | ||||||||||||||||||||||||||||||||||||||||
Operating profit | $ | 129,768 | $ | 13,355 | $ | 1,212 | $ | 144,335 | ||||||||||||||||||||||||||||||||||||
Non-operating pension costs | 5,550 | — | (5,550) | — | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 15,952 | — | — | 15,952 | ||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 108,266 | 13,355 | 6,762 | 128,383 | ||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 28,491 | 3,307 | 1,430 | 33,228 | ||||||||||||||||||||||||||||||||||||||||
Income before equity in earnings of affiliates | 79,775 | 10,048 | 5,332 | 95,155 | ||||||||||||||||||||||||||||||||||||||||
Equity in earnings of affiliates, net of tax | 1,511 | — | — | 1,511 | ||||||||||||||||||||||||||||||||||||||||
Net income | 81,286 | 10,048 | 5,332 | 96,666 | ||||||||||||||||||||||||||||||||||||||||
Net (income) attributable to noncontrolling interests | (127) | (69) | — | (196) | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco | 81,159 | 9,979 | 5,332 | 96,470 | ||||||||||||||||||||||||||||||||||||||||
Per diluted common share* | $ | 0.80 | $ | 0.10 | $ | 0.05 | $ | 0.95 | ||||||||||||||||||||||||||||||||||||
*Due to rounding individual items may not sum across |
For the three months ended July 1, 2018 | For the three months ended July 1, 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 | $ | 131,862 | $ | 3,567 | $ | 2,839 | $ | 138,268 | |||||||||||||||||||||||||||||||||||||||||||
Non-operating pension (income)/costs | 513 | — | (645 | ) | (132 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating pension costs | Non-operating pension costs | 513 | — | (513) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 15,127 | — | — | 15,127 | Interest expense, net | 15,127 | — | — | 15,127 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 116,222 | 3,567 | 3,484 | 123,273 | Income before income taxes | 116,222 | 3,567 | 3,352 | 123,141 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 30,293 | 1,046 | 1,586 | 32,925 | Provision for income taxes | 30,293 | 1,046 | 1,626 | 32,965 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income before equity in earnings of affiliates | 85,929 | 2,521 | 1,898 | 90,348 | Income before equity in earnings of affiliates | 85,929 | 2,521 | 1,726 | 90,176 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings of affiliates, net of tax | 3,716 | — | — | 3,716 | Equity in earnings of affiliates, net of tax | 3,716 | — | — | 3,716 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 89,645 | 2,521 | 1,898 | 94,064 | Net income | 89,645 | 2,521 | 1,726 | 93,892 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net (income) attributable to noncontrolling interests | (233 | ) | (15 | ) | — | (248 | ) | Net (income) attributable to noncontrolling interests | (233) | (15) | — | (248) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco | $ | 89,412 | $ | 2,506 | $ | 1,898 | $ | 93,816 | Net income attributable to Sonoco | $ | 89,412 | $ | 2,506 | $ | 1,726 | $ | 93,644 | |||||||||||||||||||||||||||||||||||||||||||
Per diluted common share* | $ | 0.88 | $ | 0.02 | $ | 0.02 | $ | 0.93 | Per diluted common share* | $ | 0.88 | $ | 0.02 | $ | 0.02 | $ | 0.93 | |||||||||||||||||||||||||||||||||||||||||||
*Due to rounding individual items may not sum across | *Due to rounding individual items may not sum across | *Due to rounding individual items may not sum across |
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 | $ | (48) | |||
Selling prices | 12 | ||||
Acquisitions | 67 | ||||
Foreign currency translation and other, net | (38) | ||||
Total sales decrease | $ | (7) | |||
($ in millions) | |||
Volume/mix | $ | 35 | |
Selling prices | 11 | ||
Acquisitions | 62 | ||
Foreign currency translation and other, net | 18 | ||
Total sales increase | $ | 126 | |
Three Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2019 | July 1, 2018 | % Change | ||||||||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 602,750 | $ | 616,062 | (2.2) | % | ||||||||||||||||||||||||||
Display and Packaging | 134,833 | 143,260 | (5.9) | % | ||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 491,328 | 474,137 | 3.6 | % | ||||||||||||||||||||||||||||
Protective Solutions | 130,810 | 132,914 | (1.6) | % | ||||||||||||||||||||||||||||
Consolidated | $ | 1,359,721 | $ | 1,366,373 | (0.5) | % |
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 | June 30, 2019 | July 1, 2018 | % Change | ||||||||||||||||||||||||||||||||||||||
Operating profit: | Operating profit: | ||||||||||||||||||||||||||||||||||||||||||
Segment operating profit: | Segment operating profit: | ||||||||||||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 63,670 | $ | 60,376 | 5.5 | % | Consumer Packaging | $ | 62,942 | $ | 63,670 | (1.1) | % | ||||||||||||||||||||||||||||||
Display and Packaging | (570 | ) | 1,479 | (138.5 | )% | Display and Packaging | 5,889 | (570) | > 100% | ||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 61,542 | 45,437 | 35.4 | % | Paper and Industrial Converted Products | 61,229 | 61,542 | (0.5) | % | ||||||||||||||||||||||||||||||||||
Protective Solutions | 13,626 | 11,016 | 23.7 | % | Protective Solutions | 14,275 | 13,626 | 4.8 | % | ||||||||||||||||||||||||||||||||||
Restructuring/Asset impairment charges | (3,567 | ) | (7,897 | ) | Restructuring/Asset impairment charges | (13,355) | (3,567) | ||||||||||||||||||||||||||||||||||||
Other, net | (2,839 | ) | (5,231 | ) | Other, net | (1,212) | (2,839) | ||||||||||||||||||||||||||||||||||||
Consolidated | $ | 131,862 | $ | 105,180 | 25.4 | % | Consolidated | $ | 129,768 | $ | 131,862 | (1.6) | % |
Three Months Ended | ||||||||||||||||||||
June 30, 2019 | July 1, 2018 | |||||||||||||||||||
Restructuring/Asset impairment charges: | ||||||||||||||||||||
Consumer Packaging | $ | 10,487 | $ | 1,986 | ||||||||||||||||
Display and Packaging | 511 | 677 | ||||||||||||||||||
Paper and Industrial Converted Products | 1,600 | 64 | ||||||||||||||||||
Protective Solutions | 561 | 820 | ||||||||||||||||||
Corporate | 196 | 20 | ||||||||||||||||||
Consolidated | $ | 13,355 | $ | 3,567 |
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 six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Dollars in thousands, except per share data | GAAP | Restructuring/ Asset Impairment | Other Adjustments(1) | Base | ||||||||||||||||||||||||||||||||||||||||
Operating profit | $ | 246,656 | $ | 24,027 | $ | 1,612 | $ | 272,295 | ||||||||||||||||||||||||||||||||||||
Non-operating pension costs | 11,591 | — | (11,591) | — | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 31,337 | — | — | 31,337 | ||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 203,728 | 24,027 | 13,203 | 240,958 | ||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 51,115 | 5,945 | 3,315 | 60,375 | ||||||||||||||||||||||||||||||||||||||||
Income before equity in earnings of affiliates | 152,613 | 18,082 | 9,888 | 180,583 | ||||||||||||||||||||||||||||||||||||||||
Equity in earnings of affiliates, net of tax | 2,441 | — | — | 2,441 | ||||||||||||||||||||||||||||||||||||||||
Net income | 155,054 | 18,082 | 9,888 | 183,024 | ||||||||||||||||||||||||||||||||||||||||
Net (income) attributable to noncontrolling interests | (232) | (138) | — | (370) | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco | $ | 154,822 | $ | 17,944 | $ | 9,888 | $ | 182,654 | ||||||||||||||||||||||||||||||||||||
Per diluted common share* | $ | 1.53 | $ | 0.18 | $ | 0.10 | $ | 1.81 | ||||||||||||||||||||||||||||||||||||
*Due to rounding individual items may not foot across |
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 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 costs | 222 | — | (222) | — | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 28,482 | — | — | 28,482 | ||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 213,256 | 6,630 | 3,181 | 223,067 | ||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 53,649 | 1,731 | 3,465 | 58,845 | ||||||||||||||||||||||||||||||||||||||||
Income before equity in earnings of affiliates | 159,607 | 4,899 | (284) | 164,222 | ||||||||||||||||||||||||||||||||||||||||
Equity in earnings of affiliates, net of tax | 4,963 | — | — | 4,963 | ||||||||||||||||||||||||||||||||||||||||
Net income | 164,570 | 4,899 | (284) | 169,185 | ||||||||||||||||||||||||||||||||||||||||
Net (income) attributable to noncontrolling interests | (1,103) | (20) | — | (1,123) | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to Sonoco | $ | 163,467 | $ | 4,879 | $ | (284) | $ | 168,062 | ||||||||||||||||||||||||||||||||||||
Per diluted common share* | $ | 1.62 | $ | 0.05 | $ | — | $ | 1.66 | ||||||||||||||||||||||||||||||||||||
*Due to rounding individual items may not foot across |
For the six months ended July 2, 2017 | ||||||||||||||||
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 | ||||||||
Non-operating pension (income)/costs | 38,096 | — | (31,074 | ) | 7,022 | |||||||||||
Interest expense, net | 24,850 | — | — | 24,850 | ||||||||||||
Income before income taxes | 135,893 | 12,008 | 38,998 | 186,899 | ||||||||||||
Provision for income taxes | 42,706 | 3,636 | 12,506 | 58,848 | ||||||||||||
Income before equity in earnings of affiliates | 93,187 | 8,372 | 26,492 | 128,051 | ||||||||||||
Equity in earnings of affiliates, net of tax | 4,799 | — | — | 4,799 | ||||||||||||
Net income | 97,986 | 8,372 | 26,492 | 132,850 | ||||||||||||
Net (income) attributable to noncontrolling interests | (1,128 | ) | (14 | ) | — | (1,142 | ) | |||||||||
Net income attributable to Sonoco | $ | 96,858 | $ | 8,358 | $ | 26,492 | $ | 131,708 | ||||||||
Per diluted common share* | $ | 0.96 | $ | 0.08 | $ | 0.26 | $ | 1.31 | ||||||||
*Due to rounding individual items may not sum across |
($ in millions) | |||||
Volume/mix | $ | (64) | |||
Selling prices | 38 | ||||
Acquisitions and Divestitures | 150 | ||||
Foreign currency translation and other, net | (83) | ||||
Total sales increase | $ | 41 | |||
($ in millions) | |||
Volume/mix | $ | 42 | |
Selling prices | 34 | ||
Acquisitions and Divestitures | 122 | ||
Foreign currency translation and other, net | 60 | ||
Total sales increase | $ | 258 | |
Six Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2019 | July 1, 2018 | % Change | ||||||||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 1,192,466 | $ | 1,185,914 | 0.6 | % | ||||||||||||||||||||||||||
Display and Packaging | 272,387 | 285,918 | (4.7) | % | ||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 987,365 | 934,790 | 5.6 | % | ||||||||||||||||||||||||||||
Protective Solutions | 259,208 | 263,938 | (1.8) | % | ||||||||||||||||||||||||||||
Consolidated | $ | 2,711,426 | $ | 2,670,560 | 1.5 | % |
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 | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||
July 1, 2018 | July 2, 2017 | % Change | June 30, 2019 | July 1, 2018 | % Change | ||||||||||||||||||||||||||||||||||||||
Operating profit: | Operating profit: | ||||||||||||||||||||||||||||||||||||||||||
Segment operating profit: | Segment operating profit: | ||||||||||||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 124,758 | $ | 119,836 | 4.1 | % | Consumer Packaging | $ | 125,057 | $ | 124,758 | 0.2 | % | ||||||||||||||||||||||||||||||
Display and Packaging | 1,162 | 4,701 | (75.3 | )% | Display and Packaging | 12,343 | 1,162 | >100% | |||||||||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 101,323 | 72,287 | 40.2 | % | Paper and Industrial Converted Products | 109,616 | 101,323 | 8.2 | % | ||||||||||||||||||||||||||||||||||
Protective Solutions | 24,306 | 21,947 | 10.7 | % | Protective Solutions | 25,279 | 24,306 | 4.0 | % | ||||||||||||||||||||||||||||||||||
Restructuring/Asset impairment charges | (6,630 | ) | (12,008 | ) | Restructuring/Asset impairment charges | (24,027) | (6,630) | ||||||||||||||||||||||||||||||||||||
Other, net | (2,959 | ) | (7,924 | ) | Other, net | (1,612) | (2,959) | ||||||||||||||||||||||||||||||||||||
Consolidated | $ | 241,960 | $ | 198,839 | 21.7 | % | Consolidated | $ | 246,656 | $ | 241,960 | 1.9 | % |
Six Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||
July 1, 2018 | July 2, 2017 | June 30, 2019 | July 1, 2018 | |||||||||||||||||||||||||||||||
Restructuring/Asset impairment charges: | Restructuring/Asset impairment charges: | |||||||||||||||||||||||||||||||||
Consumer Packaging | $ | 3,715 | $ | 4,160 | Consumer Packaging | $ | 17,742 | $ | 3,715 | |||||||||||||||||||||||||
Display and Packaging | 663 | 723 | Display and Packaging | 886 | 663 | |||||||||||||||||||||||||||||
Paper and Industrial Converted Products | 911 | 4,808 | Paper and Industrial Converted Products | 2,474 | 911 | |||||||||||||||||||||||||||||
Protective Solutions | 1,098 | 1,854 | Protective Solutions | 1,003 | 1,098 | |||||||||||||||||||||||||||||
Corporate | 243 | 463 | Corporate | 1,922 | 243 | |||||||||||||||||||||||||||||
Consolidated | $ | 6,630 | $ | 12,008 | Consolidated | $ | 24,027 | $ | 6,630 |
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 | ||||||||||||||||||||||
4/01/19 - 5/05/19 | 12,479 | $ | 61.85 | — | 2,969,611 | |||||||||||||||||||||
5/06/19 - 6/02/19 | 1,514 | $ | 63.51 | — | 2,969,611 | |||||||||||||||||||||
6/03/19 - 6/30/19 | 4,570 | $ | 62.92 | — | 2,969,611 | |||||||||||||||||||||
Total | 18,563 | $ | 62.25 | — | 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 | |||||
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||
101.SCH | XBRL Taxonomy Extension Schema Document | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||||
* | Schedules and exhibits have been omitted pursuant to Item 601 (b)(2) of Regulation S-K. The | ||||
SONOCO PRODUCTS COMPANY | ||||||||||||||||||||
(Registrant) | ||||||||||||||||||||
Date: | July 31, 2019 | /s/ Julie Albrecht | ||||||||||||||||||
Julie Albrecht | ||||||||||||||||||||
(principal financial officer) | ||||||||||||||||||||
/s/ James W. Kirkland | ||||||||||||||||||||
James W. Kirkland | ||||||||||||||||||||
Corporate Controller | ||||||||||||||||||||
(principal accounting officer) |