Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 01, 2018 | Jul. 20, 2018 | |
Document Document And Entity Information [Abstract] | ||
Entity Registrant Name | SONOCO PRODUCTS CO | |
Entity Central Index Key | 91,767 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 1, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Trading Symbol | SON | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 99,602,101 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 | [1] |
Current Assets | |||
Cash and cash equivalents | $ 197,691 | $ 254,912 | |
Trade accounts receivable, net of allowances | 768,338 | 725,251 | |
Other receivables | 90,954 | 64,561 | |
Inventories, net: | |||
Finished and in process | 162,766 | 196,204 | |
Materials and supplies | 308,682 | 277,859 | |
Prepaid expenses | 46,537 | 44,849 | |
Total Current Assets | 1,574,968 | 1,563,636 | |
Property, Plant and Equipment, Net | 1,167,665 | 1,169,377 | |
Goodwill | 1,287,839 | 1,241,875 | |
Other Intangible Assets, Net | 350,415 | 331,295 | |
Deferred Income Taxes | 49,479 | 62,053 | |
Other Assets | 192,602 | 189,485 | |
Total Assets | 4,622,968 | 4,557,721 | |
Current Liabilities | |||
Payable to suppliers | 556,519 | 548,309 | |
Accrued expenses and other | 285,096 | 283,355 | |
Notes payable and current portion of long-term debt | 177,645 | 159,327 | |
Accrued taxes | 10,812 | 8,979 | |
Total Current Liabilities | 1,030,072 | 999,970 | |
Long-term Debt, Net of Current Portion | 1,274,325 | 1,288,002 | |
Pension and Other Postretirement Benefits | 340,602 | 355,187 | |
Deferred Income Taxes | 79,891 | 74,073 | |
Other Liabilities | 107,813 | 110,429 | |
Commitments and Contingencies | |||
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 | |
Capital in excess of stated value | 332,528 | 330,157 | |
Accumulated other comprehensive loss | (692,401) | (666,272) | |
Retained earnings | 2,120,529 | 2,036,006 | |
Total Sonoco Shareholders’ Equity | 1,767,831 | 1,707,066 | |
Noncontrolling Interests | 22,434 | 22,994 | |
Total Equity | 1,790,265 | 1,730,060 | |
Total Liabilities and Equity | $ 4,622,968 | $ 4,557,721 | |
[1] | 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. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - shares | Jul. 01, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 99,578,000 | 99,414,000 |
Common stock, shares outstanding | 99,578,000 | 99,414,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,366,373 | $ 1,240,674 | $ 2,670,560 | $ 2,412,998 |
Cost of sales | 1,089,913 | 1,002,289 | 2,143,498 | 1,951,634 |
Gross profit | 276,460 | 238,385 | 527,062 | 461,364 |
Selling, general and administrative expenses | 141,031 | 125,308 | 278,472 | 250,517 |
Restructuring/Asset impairment charges | 3,567 | 7,897 | 6,630 | 12,008 |
Operating profit | 131,862 | 105,180 | 241,960 | 198,839 |
Nonoperating Income (Expense) | 513 | 34,410 | 222 | 38,096 |
Interest expense | 16,217 | 13,823 | 31,012 | 26,908 |
Interest income | 1,090 | 1,031 | 2,530 | 2,058 |
Income before income taxes | 116,222 | 57,978 | 213,256 | 135,893 |
Provision for income taxes | 30,293 | 17,167 | 53,649 | 42,706 |
Income before equity in earnings of affiliates | 85,929 | 40,811 | 159,607 | 93,187 |
Equity in earnings of affiliates, net of tax | 3,716 | 2,845 | 4,963 | 4,799 |
Net income | 89,645 | 43,656 | 164,570 | 97,986 |
Net income attributable to noncontrolling interests | (233) | (531) | (1,103) | (1,128) |
Net income attributable to Sonoco | $ 89,412 | $ 43,125 | $ 163,467 | $ 96,858 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 100,568 | 100,258 | 100,482 | 100,184 |
Diluted (in shares) | 101,040 | 100,717 | 100,965 | 100,849 |
Net income attributable to Sonoco: | ||||
Basic (in usd per share) | $ 0.89 | $ 0.43 | $ 1.63 | $ 0.97 |
Diluted (in usd per share) | 0.88 | 0.43 | 1.62 | 0.96 |
Cash dividends (in usd per share) | $ 0.41 | $ 0.39 | $ 0.8 | $ 0.76 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 89,645 | $ 43,656 | $ 164,570 | $ 97,986 |
Other comprehensive income/(loss): | ||||
Foreign currency translation adjustments | (64,587) | 29,526 | (41,604) | 60,362 |
Changes in defined benefit plans, net of tax | 9,422 | 36,711 | 15,239 | 48,010 |
Changes in derivative financial instruments, net of tax | (2,312) | (518) | (1,265) | (3,467) |
Other comprehensive (loss)/income | (57,477) | 65,719 | (27,630) | 104,905 |
Comprehensive income | 32,168 | 109,375 | 136,940 | 202,891 |
Net income attributable to noncontrolling interests | (233) | (531) | (1,103) | (1,128) |
Other comprehensive loss/(income) attributable to noncontrolling interests | 2,107 | 159 | 1,677 | (521) |
Comprehensive income attributable to Sonoco | $ 34,042 | $ 109,003 | $ 137,514 | $ 201,242 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 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 | [1] | 257,226 |
Cash and cash equivalents at end of period | $ 197,691 | $ 207,591 | |
[1] | 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. |
Basis of Interim Presentation
Basis of Interim Presentation | 6 Months Ended |
Jul. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Interim Presentation | Basis of Interim Presentation In the opinion of the management of Sonoco Products Company (the “Company” or “Sonoco”), the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments, unless otherwise stated) necessary to state fairly the consolidated financial position, results of operations and cash flows for the interim periods reported herein. Operating results for the three and six months ended July 1, 2018 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 . With respect to the unaudited condensed consolidated financial information of the Company for the three and six- month periods ended July 1, 2018 and July 2, 2017 included in this Form 10-Q, PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report dated August 1, 2018 appearing herein, states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP is not subject to the liability provisions of Section 11 of the Securities Act of 1933 for their report on the unaudited financial information because that report is not a “report” or a “part” of a registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the Act. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jul. 01, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2 017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities," which expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The update to the standard is effective for periods beginning after December 15, 2018, with early adoption permitted in any interim period after issuance of this update. T he Company implemented this ASU effective January 1, 2018, and recorded a cumulative adjustment to retained earnings of $176 as of that date in order to remove previously recognized ineffectiveness losses on contracts outstanding as of the date of adoption. In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires an employer to report service cost in the same line item as other compensation costs arising from employees during the period. The other components of net benefit cost as defined are required to be presented separately from the service cost component and outside a subtotal of income from operations, if one is presented, or disclosed. This update also allows only the service cost component to be eligible for capitalization when applicable and is effective for periods beginning after December 15, 2017. The amendments are to be applied retrospectively for the presentation of the components of net benefit cost in the income statement and prospectively for the capitalization of the service cost component. T he Company implemented this ASU effective January 1, 2018, modifying its income statement presentation of the components of net benefit cost accordingly, including the retrospective application to previously reported results. As a result of the retrospective application, the amounts previously reported in "Cost of sales" and "Selling, general and administrative expenses" for the three months ended July 2, 2017 , were reduced by $2,510 and $31,900 , respectively, and "Operating profit" increased by $34,410 , in order to conform to the current presentation. The comparable changes for the six months ended July 2, 2017 , were $5,267 , $32,829 , and $38,096 , for "Cost of sales," "Selling, general and administrative expenses," and "Operating profit," respectively. No change was required to the Company's historical policy regarding the capitalization of such costs. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” eliminating the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under ASU 2017-04, goodwill impairment testing is performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted, and should be applied on a prospective basis. The Company elected early adoption of the standard effective January 1, 2018. Any future goodwill impairment, should it occur, will be determined in accordance with this ASU. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory," which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset upon transfer other than inventory, eliminating the current recognition exception. Prior to this ASU, GAAP prohibited the recognition of current and deferred income taxes for intra-entity asset transfers until the asset was sold to an outside party. The recognition prohibition was an exception to the principle of comprehensive recognition of current and deferred income taxes in GAAP. This guidance became effective for the Company on January 1, 2018, and did not have a material effect on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, " Classification of Certain Cash Receipts and Cash Payments ," providing clarification on eight cash flow classification issues, including 1) debt prepayment or debt extinguishment costs, 2) settlement of relatively insignificant debt instruments, 3) contingent consideration payments, 4) insurance claim settlements, 5) life insurance settlements, 6) distributions received from equity method investees, 7) beneficial interests in securitization transactions, and 8) separately identifiable cash flows. This guidance, which applies to both interim and annual periods, became effective for the Company on January 1, 2018. As a result of the retrospective application, insurance proceeds totaling $1,104 received during the six months ended July 2, 2017 previously reported in "Cash Flows from Operating Activities" were reclassified to "Cash Flows from Investing Activities." Otherwise, adoption of the standard did not have a material effect on the Company's consolidated financial statements, as the Company either did not realize any cash flows from these types of activities, such amounts were immaterial, or the prescribed guidance did not differ from its current practice. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers, Principal versus Agent Considerations (Reporting Revenue Gross versus Net)," which provides guidance on recording revenue on a gross basis versus a net basis based on the determination of whether an entity is a principal or an agent when another party is involved in providing goods or services to a customer. The amendments in this update affect the guidance in ASU No. 2014-09 and are effective in the same time frame as ASU 2014-09 as discussed below. In February 2016, the FASB issued ASU 2016-02, "Leases" which changes accounting for leases and requires lessees to recognize the assets and liabilities arising from all leases, including those classified as operating leases under previous accounting guidance on the balance sheet and requires disclosure of key information about leasing arrangements to increase transparency and comparability among organizations. The accounting for lessors does not fundamentally change except for changes to conform and align guidance to the lessee guidance. The guidance is effective for reporting periods beginning after December 15, 2018, including interim periods within those fiscal years and requires retrospective application. The Company is still assessing the impact of ASU 2016-02 on its consolidated financial statements, but expects the adoption of this ASU to have a material impact on its consolidated balance sheet for the initial recognition of the right-of-use asset and lease liability associated with operating leases that are not currently recognized on the balance sheet under present U.S. GAAP. In May 2014, the FASB issued ASU 2014-09, "Revenue From Contracts With Customers," which changes the definitions/criteria used to determine when revenue should be recognized from being based on risks and rewards to being based on control. Among other changes, ASU 2014-09 changes the manner in which variable consideration is recognized, requires recognition of the time value of money when payment terms exceed one year, provides clarification on accounting for contract costs, and expands disclosure requirements. The Company adopted ASU 2014-09 in the first quarter of 2018 following the modified retrospective transition method and, as such, recorded a cumulative adjustment of $1,721 to beginning retained earnings for the period. The most significant impacts to the Company's financial statements from the adoption of this ASU are the acceleration of revenue recognition compared to prior standards for arrangements under which the Company is producing customer-specific products without alternative use and would be entitled to payment for work completed, including a reasonable margin, and the recognition of material customer contract rights for certain agreed-upon future price concessions. During the three- and six- month periods ended July 1, 2018 , there have been no other newly issued nor newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at July 1, 2018 , there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements. |
Changes in Accounting Policy
Changes in Accounting Policy | 6 Months Ended |
Jul. 01, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Changes in Accounting Policy | Changes in Accounting Policy Except for the changes below, the Company has consistently applied the accounting policies to all periods presented in these condensed consolidated financial statements. The Company adopted Topic 606, "Revenue from Contracts with Customers," effective January 1, 2018. As a result, the Company has changed its accounting policy for revenue recognition as detailed in Note 14. The Company applied Topic 606 using the cumulative effect method by recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of equity at January 1, 2018. Therefore, the comparative information has not been adjusted and continues to be reported under Topic 605. The details of the significant changes and quantitative impact of the changes are set out below. 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 The following table summarizes the impact of the adoption of Topic 606 on the Company's Condensed Consolidated Balance Sheet as of July 1, 2018 : July 1, 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 The following table summarizes the impact of the adoption of Topic 606 on the Company's Condensed Consolidated Statement of Income for the three- and six- months ending July 1, 2018 : Three Months Ended Six Months Ended July 1, Adjustments Balances without Adoption of Topic 606 July 1, 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 The following table summarizes the impact of the adoption of Topic 606 on the Company's Condensed Consolidated Statement of Comprehensive Income for the three- and six- months ending July 1, 2018 : Three Months Ended Six Months Ended July 1, Adjustments Balances without Adoption of Topic 606 July 1, 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 The following table summarizes the impact of the adoption of Topic 606 on the Company's Condensed Consolidated Statement of Cash Flows for the six months ended July 1, 2018 : 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 |
Acquisitions
Acquisitions | 6 Months Ended |
Jul. 01, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On April 12, 2018, the Company completed the acquisition of Highland Packaging Solutions ("Highland"). Total consideration for this acquisition was $148,805 , including cash paid at closing of $141,305 and a contingent purchase liability of $7,500 . Final consideration will also be subject to an adjustment for working capital, which is expected to be completed by the end of the third quarter of 2018. The contingent purchase liability is based upon a sales metric which the Company expects to meet and is payable in two installments. The first installment of $5,000 is to be paid one year after the closing date and the second installment of $2,500 is to be paid two years after the closing date. The liability for these two payments has been recognized in full on the Company's Condensed Consolidated Balance Sheet at July 1, 2018 , with the first installment included in "Accrued expenses and other" and the second in "Other Liabilities." Highland manufactures thermoformed plastic packaging for fresh produce and dairy products from a single production facility in Plant City, Florida, providing total packaging solutions for customers that include sophisticated engineered containers, flexographic printed labels, and inventory management through distribution warehouses in the Southeast and West Coast of the United States. The Company financed the acquisition with proceeds from a new $100,000 term loan, along with proceeds from existing credit facilities. See Note 9 for additional information. The preliminary fair values of the assets acquired and liabilities assumed in connection with the Highland acquisition are as follows: 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 Factors comprising goodwill, all of which is expected to be deductible for income tax purposes, include increased access to certain markets as well as the value of the assembled workforce. Highland's financial results are included in the Company's Consumer Packaging segment and the business will operate within the Company's global plastics division. The allocation of the purchase price of Highland to the tangible and intangible assets acquired and liabilities assumed was based on the Company's preliminary estimates of their fair value, based on information currently available. Management is continuing to finalize its valuation of certain assets and liabilities including, but not limited to: inventory; property, plant and equipment; other intangible assets; and trade accounts receivable, and expects to complete its valuations within one year of the date of acquisition. The Company has accounted for its acquisitions as business combinations under the acquisition method of accounting, in accordance with the business combinations subtopic of the Accounting Standards Codification and has included their results of operations in the Company's Condensed Consolidated Statements of Income from their respective dates of acquisition. The Company does not believe the Highland acquisition is an individually material transaction subject to the supplemental pro-forma information required by ASC 805. However, the prior year acquisitions of Packaging Holdings, Inc. and subsidiaries, including Peninsula Packaging LLC ("Packaging Holdings"), acquired March 14, 2017, and Clear Lam Packaging, Inc. ("Clear Lam"), acquired July 24, 2017, were considered material on a combined basis. The following table presents the Company's estimated unaudited pro forma consolidated results for the three- and six- month periods ended July 2, 2017 , assuming both acquisitions had occurred on January 1, 2016. This pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisitions had been completed as of the beginning of 2016, nor are they necessarily indicative of future consolidated results. (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 The pro forma information above does not project the Company’s expected results of any future period and gives no effect for any future synergistic benefits that may result from consolidating these subsidiaries or costs from integrating their operations with those of the Company. Pro forma information includes adjustments to depreciation, amortization, interest expense, income taxes, and acquisition-related costs. The following table presents the aggregate, unaudited financial results for Packaging Holdings and Clear Lam from their respective dates of acquisition: (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 During the second quarter of 2018, the Company finalized its valuations of the assets and liabilities acquired in conjunction with the 2017 acquisition of Clear Lam, based on information obtained about facts and circumstances that existed as of the acquisition date. As a result, measurement period adjustments were made to the previously disclosed provisional fair values of Clear Lam's net assets that decreased property, plant and equipment by $1,168 , decreased other intangible assets by $1,300 , increased other long-term liabilities by $1,385 , increased goodwill by $4,341 , and decreased other net tangibles assets by $488 . During the first quarter of 2018, the Company finalized its valuations of the assets and liabilities acquired in conjunction with the 2017 acquisition of Packaging Holdings, based on information obtained about facts and circumstances that existed as of the acquisition date. As a result, measurement period adjustments were made to the previously disclosed provisional fair values of Packaging Holding's net assets that decreased deferred tax assets by $6,516 , increased long-term debt by $664 , and increased goodwill by $7,180 . The adjustments were primarily related to a reduction in the Company’s valuation of acquired tax loss carryforwards and the fair value of capital lease obligations. Acquisition-related costs of $3,091 and $945 were incurred during the three months ended July 1, 2018 and July 2, 2017 , respectively, and $3,636 and $5,270 during the six months ended July 1, 2018 and July 2, 2017 , respectively. Acquisition-related costs consist primarily of legal and professional fees and are included in "Selling, general and administrative expenses" in the Company's Condensed Consolidated Statements of Income. On May 25, 2018, the Company entered into a definitive agreement to acquire the remaining 70 percent interest in Conitex Sonoco (BVI), Ltd. ("Conitex Sonoco") for approximately $133,000 in cash. The Conitex Sonoco joint venture was formed in 1998 between Texpack, Inc., a Spanish-based global provider of paperboard and paper-based packaging products, and Sonoco’s former North America textile cone business. Conitex Sonoco produces uncoated recycled paperboard and tubes and cones for the global spun yarn industry, as well as adhesives, flexible intermediate bulk containers and corrugated pallets. Conitex Sonoco has approximately 1,250 employees across 13 manufacturing locations in 10 countries, including four paper mills and seven cone and tube converting operations and two other production facilities. The transaction is subject to normal international regulatory reviews and is expected to close in the fourth quarter of 2018. The Company has also entered into an agreement with Texpack, Inc. to acquire a rigid paper facility in Spain for approximately $10,000 . This transaction is contingent on completion of the Conitex Sonoco acquisition and will close concurrently with it. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jul. 01, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Earnings per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, 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 Potentially dilutive securities are calculated in accordance with the treasury stock method, which assumes the proceeds from the exercise of all dilutive stock appreciation rights (SARs) are used to repurchase the Company’s common stock. Certain SARs are not dilutive because either the exercise price is greater than the average market price of the stock during the reporting period or assumed repurchases from proceeds from the exercise of the SARs were antidilutive. These SARs may become dilutive in the future if the market price of the Company's common stock appreciates. The average number of SARs that were not dilutive and therefore not included in the computation of diluted earnings per share during the three- and six- month periods ended July 1, 2018 and July 2, 2017 was as follows: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, Anti-dilutive stock appreciation rights 1,043 532 891 444 No adjustments were made to net income attributable to Sonoco in the computations of earnings per share. Stock Repurchases On February 10, 2016, the Company’s Board of Directors authorized the repurchase of up to 5,000 shares of the Company's common stock. A total of 2,030 were purchased in 2016. No shares were repurchased under this authorization during 2017 or during the six months ended July 1, 2018 . Accordingly, a total of 2,970 shares remain available for repurchase at July 1, 2018 . The Company frequently repurchases shares of its common stock to satisfy employee tax withholding obligations in association with certain share-based compensation awards. These repurchases, which are not part of a publicly announced plan or program, totaled 87 shares in the six months ended July 1, 2018 at a cost of $4,558 , and 111 shares in the six months ended July 2, 2017 at a cost of $5,884 . Dividend Declarations On April 18, 2018 , the Board of Directors declared a regular quarterly dividend of $0.41 per share. This dividend was paid on June 8, 2018 to all shareholders of record as of May 11, 2018 . On July 18, 2018 , the Board of Directors declared a regular quarterly dividend of $0.41 per share. This dividend is payable on September 10, 2018 to all shareholders of record as of August 10, 2018 . |
Restructuring and Asset Impairm
Restructuring and Asset Impairment | 6 Months Ended |
Jul. 01, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment | Restructuring and Asset Impairment The Company has engaged in a number of restructuring actions over the past several years. Actions initiated in 2018 and 2017 are reported as “2018 Actions” and “2017 Actions,” respectively. Actions initiated prior to 2017, all of which were substantially complete at July 1, 2018 , are reported as “2016 and Earlier Actions.” Following are the total restructuring and asset impairment charges, net of adjustments, recognized by the Company during the periods presented: 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 Pre-tax restructuring and asset impairment charges are included in “Restructuring/Asset impairment charges” in the Condensed Consolidated Statements of Income. When recognizable in accordance with GAAP, the Company expects to recognize future additional charges totaling approximately $2,350 in connection with previously announced restructuring actions. The Company believes that the majority of these charges will be incurred and paid by the end of 2018. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken. 2018 Actions During 2018, the Company announced the closure of a flexible packaging plant in North Carolina and a global brand management facility in Canada (both part of the Consumer Packaging segment), a tubes and cores plant in Alabama (part of the Paper and Industrial Converted Products segment), and a protective packaging plant in North Carolina (part of the Protective Solutions segment). In addition, approximately 55 positions were eliminated in the first half of 2018 in conjunction with the Company's ongoing organizational effectiveness efforts. Below is a summary of 2018 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2018 Actions Second Quarter 2018 Total Estimated 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 The following table sets forth the activity in the 2018 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: 2018 Actions Severance Termination Asset Impairment/ Disposal Other Costs Total Accrual Activity 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 Included in "Asset Impairment/Disposal of Assets" above is a net gain of $272 resulting from the sale of a building and land relating to the closure of a protective packaging plant in North Carolina. The Company received proceeds of $2,019 from the sale and wrote off assets of $1,747 . The Company expects to pay the majority of the remaining 2018 Actions restructuring costs by the end of 2018 using cash generated from operations. 2017 Actions During 2017, the Company announced the closure of an expanded foam protective packaging plant in the United States (part of the Protective Solutions segment) and five tubes and cores plants - three in the United States, one in Belgium, and one in China (all part of the Paper and Industrial Converted Products segment). In addition, approximately 255 positions were eliminated throughout 2017 in conjunction with the Company's ongoing organizational effectiveness efforts. Below is a summary of 2017 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2018 2017 Total Incurred Estimated 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 The following table sets forth the activity in the 2017 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: 2017 Actions Severance Asset Other 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 Included in "Asset Impairment/Disposal of Assets" above are gains totaling $1,373 related to the sales of the land and buildings associated with two previously closed tube and core facilities. The Company received proceeds of $1,833 from these sales and wrote off assets with a book value totaling $460 . “Other costs” consist primarily of costs related to plant closures including equipment removal, utilities, plant security, property taxes and insurance. The Company expects to pay the majority of the remaining 2017 Actions restructuring costs by the end of 2018 using cash generated from operations. 2016 and Earlier Actions 2016 and Earlier Actions are comprised of a number of plant closures and workforce reductions initiated prior to 2017. Charges for these actions in both 2018 and 2017 primarily relate to the cost of plant closures including severance, equipment removal, plant security, property taxes and insurance. The Company expects to recognize future pretax charges of approximately $100 associated with 2016 and Earlier Actions. Below is a summary of expenses/(income) incurred by segment for 2016 and Earlier Actions for the three- and six- month periods ended July 1, 2018 and July 2, 2017 . 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 The accrual for 2016 and Earlier Actions totaled $1,577 and $3,044 at July 1, 2018 and December 31, 2017 , respectively, and is included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets. The majority of the liability associated with 2016 and Earlier Actions relates to unpaid severance and building lease termination costs and is expected to be paid by the end of 2018 using cash generated from operations. Other asset impairments As a result of the continued devaluation of the Venezuelan Bolivar, the Company recognized impairment charges against inventories and certain long-term nonmonetary assets totaling $338 in the second quarter of 2017. The assets were deemed to be impaired as the U.S. dollar value of the projected cash flows from these assets was no longer sufficient to recover their U.S. dollar carrying values. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jul. 01, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the six months ended July 1, 2018 and July 2, 2017 : 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 ) "Other comprehensive income/(loss) before reclassifications" during the six months ended July 2, 2017 , includes $5,071 of "Defined Benefit Pension Items" related to the release of a portion of the valuation allowance on deferred tax assets related to the pension plan of a foreign subsidiary. The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three- and six- month periods ended July 1, 2018 and July 2, 2017 : Amount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended Details about Accumulated Other Comprehensive Loss Components July 1, July 2, July 1, July 2, Affected Line Item in the Condensed Consolidated Statements of Income Gains and losses on cash flow hedges Foreign exchange contracts $ (240 ) $ 2,243 $ 570 $ 3,283 Net sales Foreign exchange contracts 174 (1,317 ) (353 ) (2,042 ) Cost of sales Commodity contracts 68 463 10 711 Cost of sales 2 1,389 227 1,952 Income before income taxes (1 ) (497 ) (45 ) (695 ) Provision for income taxes $ 1 $ 892 $ 182 $ 1,257 Net income Defined benefit pension items Effect of settlement loss (a) $ (645 ) $ (31,074 ) $ (645 ) $ (31,074 ) Selling, general and Amortization of defined benefit pension items (a) (8,983 ) (9,668 ) (18,284 ) (19,785 ) Non-operating pension (income)/cost (9,628 ) (40,742 ) (18,929 ) (50,859 ) Income before income taxes 2,419 17,224 4,758 20,966 Provision for income taxes $ (7,209 ) $ (23,518 ) $ (14,171 ) $ (29,893 ) Net income Total reclassifications for the period $ (7,208 ) $ (22,626 ) $ (13,989 ) $ (28,636 ) Net income (a) See Note 12 for additional details. The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the three-month periods ended July 1, 2018 and July 2, 2017 : 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 The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the six-month periods ended July 1, 2018 and July 2, 2017 : 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 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jul. 01, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill A summary of the changes in goodwill by segment for the six months ended July 1, 2018 is as follows: 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 On April 12, 2018, the Company completed the acquisition of Highland Packaging Solutions ("Highland") which resulted in the recognition of $48,387 of goodwill. Reflected in "Other" above are measurement period adjustments made in the first six months of 2018 to finalize the fair values of the assets acquired and the liabilities assumed in the 2017 acquisitions of Packaging Holdings and Clear Lam, resulting in increases in goodwill of $7,180 and $4,341 , respectively. See Note 4 for additional information. The Company assesses goodwill for impairment annually and from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. The Company completed its most recent annual goodwill impairment testing during the third quarter of 2017. As part of this testing, the Company analyzed certain qualitative and quantitative factors in determining goodwill impairment. The Company's assessments reflected a number of significant management assumptions and estimates including the Company's forecast of sales volumes and prices, profit margins, income taxes, capital expenditures and changes in working capital requirements. Changes in these assumptions and/or discount rates could materially impact the Company's conclusions. Based on its assessments, the Company concluded that there was no impairment of goodwill for any of its reporting units. Although no reporting units failed the assessments noted above, in management’s opinion, the reporting units having the greatest risk of a significant future impairment if actual results fall short of expectations are Display and Packaging, and Paper and Industrial Converted Products - Europe. Total goodwill associated with these reporting units was $203,414 and $91,639 , respectively, at July 1, 2018 . A large portion of projected sales in the Display and Packaging reporting unit is concentrated in several major customers, the loss of any of which could impact the Company's conclusion regarding the likelihood of goodwill impairment for the unit. There were no triggering events identified between the most recent annual impairment test and July 1, 2018 . Although on April 20, 2018, the Company was advised by one if its Display and Packaging customers that its contract would not be renewed, it has subsequently been able to successfully retain this business through 2021. Because the estimated fair value of this reporting unit is extremely close to its carrying value, it is likely that any significant negative change in assumptions regarding future performance and / or discount rate would result in a goodwill impairment charge being recognized. Other Intangible Assets A summary of other intangible assets as of July 1, 2018 and December 31, 2017 is as follows: July 1, December 31, Other Intangible Assets, gross: Patents $ 21,969 $ 21,957 Customer lists 535,038 497,634 Trade names 26,987 25,148 Proprietary technology 20,763 20,779 Land use rights 289 298 Other 2,133 1,740 Other Intangible Assets, gross $ 607,179 $ 567,556 Accumulated Amortization: Patents (8,231 ) (7,187 ) Customer lists (227,296 ) (210,212 ) Trade names (5,777 ) (4,427 ) Proprietary technology (14,084 ) (13,192 ) Land use rights (49 ) (47 ) Other (1,327 ) (1,196 ) Total Accumulated Amortization $ (256,764 ) $ (236,261 ) Other Intangible Assets, net $ 350,415 $ 331,295 The acquisition of Highland in April 2018 resulted in the addition of $45,610 of intangible assets, the vast majority of which related to customer lists. These intangibles will be amortized over a weighted average useful life of approximately 13 years. In addition, measurement period adjustments were made in the second quarter of 2018 to the provisional fair values of the intangible assets acquired in the July 2017 acquisition of Clear Lam resulting in a $1,300 reduction in the value previously attributed to customer lists. See Note 4 for additional information. Other intangible assets are amortized on a straight-line basis over their respective useful lives, which generally range from three to forty years. The Company has no intangible assets with indefinite lives. Aggregate amortization expense was $12,401 and $9,378 for the three months ended July 1, 2018 and July 2, 2017 , respectively, and $22,603 and $16,589 for the six months ended July 1, 2018 and July 2, 2017 , respectively. Amortization expense on other intangible assets is expected to total approximately $46,100 in 2018, $45,400 in 2019, $42,300 in 2020, $41,400 in 2021 and $39,500 in 2022. |
Debt
Debt | 6 Months Ended |
Jul. 01, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt On April 12, 2018, the Company entered into a $100,000 term loan with Bank of America, N.A. The full amount was drawn from this facility on April 12, 2018, and the proceeds, along with proceeds from existing credit facilities, were used to fund the acquisition of Highland Packaging Solutions. The loan has a 364 -day term and the Company has a one -time option to extend the term for an additional 364 days at its sole discretion. Interest is assessed at the London Interbank Offered Rate (LIBOR) plus a margin based on a pricing grid that uses the Company's credit ratings. The current LIBOR margin is 110 basis points. There is no required amortization and repayment can be accelerated at any time at the discretion of the Company. The Company repaid $50,000 of the borrowings from this term loan during the second quarter of 2018. |
Financial Instruments and Deriv
Financial Instruments and Derivatives | 6 Months Ended |
Jul. 01, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Derivatives | Financial Instruments and Derivatives The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value. 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 The carrying value of cash and cash equivalents, short-term debt and long-term variable-rate debt approximates fair value. The fair value of long-term debt is determined based on recent trade information in the financial markets of the Company’s public debt or is determined by discounting future cash flows using interest rates available to the Company for issues with similar terms and maturities. It is considered a Level 2 fair value measurement. Adoption of Accounting Standards Update 2017-12 The Company elected to early adopt Accounting Standards Update (ASU) 2 017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities," as of January 1, 2018 . The impact of the adoption of ASU 2017-12 was the recognition of a $176 increase in the Company's beginning retained earnings with an offsetting change in accumulated other comprehensive loss in order to remove previously recognized ineffectiveness losses on contracts outstanding as of the date of adoption. See Note 2 for additional information. Cash Flow Hedges At July 1, 2018 and December 31, 2017 , the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows. These contracts, which have maturities ranging to December 2019, qualify as cash flow hedges under U.S. GAAP. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. Gains and losses on the derivative instrument representing hedge components excluded from the assessment of effectiveness are recognized currently in current earnings and are presented in the same line of the income statement expected for the hedged item. Commodity Cash Flow Hedges The Company has entered into certain derivative contracts to manage the cost of anticipated purchases of natural gas and aluminum. At July 1, 2018 , natural gas swaps covering approximately 5.0 million MMBTUs were outstanding. These contracts represent approximately 74% and 33% of anticipated U.S. and Canadian usage for the remainder of 2018 and 2019, respectively. Additionally, the Company had swap contracts covering 1,905 metric tons of aluminum, representing approximately 51% of anticipated usage for the remainder of 2018. The fair values of the Company’s commodity cash flow hedges netted to a loss position of $(593) at July 1, 2018 , and $(1,713) at December 31, 2017 . The amount of the loss included in Accumulated Other Comprehensive Loss at July 1, 2018 , that is expected to be reclassified to the income statement during the next twelve months is $(233) . Foreign Currency Cash Flow Hedges The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales, purchases, and capital spending forecast to occur in 2018. The net positions of these contracts at July 1, 2018 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 3,821,059 Mexican peso purchase 351,178 Polish zloty purchase 217,049 Russian ruble purchase 31,506 Canadian dollar purchase 26,485 British pound purchase 5,535 Turkish lira purchase 5,194 New Zealand dollar sell (262 ) Australian dollar sell (709 ) Euro sell (51,137 ) The fair value of these foreign currency cash flow hedges related to forecasted sales and purchases netted to a loss position of $(1,826) at July 1, 2018 and a gain position of $950 at December 31, 2017 . In addition, the Company has entered into forward contracts to hedge certain foreign currency cash flow transactions related to construction in progress. As of July 1, 2018 and at December 31, 2017 , the net position of these contracts was $(262) and $330 , respectively. During the six months ended July 1, 2018 , gains from these hedges totaling $56 were reclassified from accumulated other comprehensive income and included in the carrying value of the related fixed assets acquired. Losses of $(262) are expected to be reclassified from accumulated other comprehensive income and included in the carrying value of the related fixed assets acquired during the next twelve months. For all cash flow hedges, losses of $(1,564) are expected to be reclassified from accumulated other comprehensive income to the income statement during the next twelve months. Other Derivatives The Company routinely enters into forward contracts or swaps to economically hedge the currency exposure of intercompany debt and existing foreign currency denominated receivables and payables. The Company does not apply hedge accounting treatment under ASC 815 for these instruments. As such, changes in fair value are recorded directly to income and expense in the periods that they occur. The net positions of these contracts at July 1, 2018 , were as follows (in thousands): Currency Action Quantity Colombian peso purchase 7,353,411 Mexican peso purchase 151,893 Canadian dollar sell (52,228 ) The fair value of the Company’s other derivatives was in a loss position of $(284) and $(581) at July 1, 2018 and December 31, 2017 , respectively. The following table sets forth the location and fair values of the Company’s derivative instruments at July 1, 2018 and December 31, 2017 : Description Balance Sheet Location July 1, December 31, 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 ) While certain of the Company’s derivative contract arrangements with its counterparties provide for the ability to settle contracts on a net basis, the Company reports its derivative positions on a gross basis. There are no collateral arrangements or requirements in these agreements. The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three months ended July 1, 2018 and July 2, 2017 : Description Amount of Gain or (Loss) Recognized in OCI on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income Derivatives in Cash Flow Hedging Relationships: Three months ended July 1, 2018 Foreign Exchange Contracts $ (4,407 ) Net sales $ (240 ) Cost of sales $ 174 Commodity Contracts $ 1,301 Cost of sales $ 68 Three months ended July 2, 2017 Foreign Exchange Contracts $ 509 Net sales $ 2,243 Cost of sales $ (1,317 ) Commodity Contracts $ 93 Cost of sales $ 463 Description Gain or (Loss) Recognized Location of Gain or (Loss) Recognized in Income Statement Derivatives not Designated as Hedging Instruments: Three months ended July 1, 2018 Foreign Exchange Contracts $ — Cost of sales $ 1,270 Selling, general and administrative Three months ended July 2, 2017 Foreign Exchange Contracts $ — Cost of sales $ 1,665 Selling, general and administrative Three months ended July 1, 2018 Three months ended July 2, 2017 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 $ (240 ) $ 242 $ 2,243 $ (854 ) 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 The following tables set forth the effect of the Company’s derivative instruments on financial performance for the six months ended July 1, 2018 and July 2, 2017 : 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 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 July 1, 2018 Six months ended July 2, 2017 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 $ 570 $ (343 ) $ 3,283 $ (1,331 ) 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 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 01, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: 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. The following table sets forth information regarding the Company’s financial assets and financial liabilities, excluding retirement and postretirement plan assets, measured at fair value on a recurring basis: Description July 1, 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, 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 $ — $ — As discussed in Note 10, the Company uses derivatives to mitigate the effect of raw material and energy cost fluctuations, foreign currency fluctuations and, from time to time, interest rate movements. Fair value measurements for the Company’s derivatives are classified under Level 2 because such measurements are estimated based on observable inputs such as interest rates, yield curves, spot and future commodity prices and spot and future exchange rates. Certain deferred compensation plan liabilities are funded by assets invested in various exchange traded mutual funds. These assets are measured using quoted prices in accessible active markets for identical assets. The Company does not currently have any non-financial assets or liabilities that are recognized or disclosed at fair value on a recurring basis. None of the Company’s financial assets or liabilities are measured at fair value using significant unobservable inputs. There were no transfers in or out of Level 1 or Level 2 fair value measurements during the three- and six- month periods ended July 1, 2018 . |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jul. 01, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Retirement Plans and Retiree Health and Life Insurance Plans The Company provides non-contributory defined benefit pension plans to certain of its employees in the United States and certain of its employees in Mexico and Belgium. The Company also sponsors contributory defined benefit pension plans covering the majority of its employees in the United Kingdom, Canada, and the Netherlands. In addition, the Company provides postretirement healthcare and life insurance benefits to a limited number of its retirees and their dependents in the United States and Canada, based on certain age and/or service eligibility requirements. The Company froze participation in its U.S. qualified defined benefit pension plan for newly hired salaried and non-union hourly employees effective December 31, 2003. To replace this benefit, the Company provides non-union U.S. employees hired on or after January 1, 2004, with an annual contribution, called the Sonoco Retirement Contribution (SRC), to their participant accounts in the Sonoco Retirement and Savings Plan. The SRC is equal to 4% of the participant's eligible pay plus 4% of eligible pay in excess of the social security wage base. Also eligible for the SRC are former participants of the U.S. qualified defined benefit pension plan who elected to transfer out of that plan under a one-time option effective January 1, 2010. On February 4, 2009, the U.S. qualified defined benefit pension plan was amended to freeze plan benefits for all active participants effective December 31, 2018. Remaining active participants in the U.S. qualified plan will become eligible for SRC contributions effective January 1, 2019. The components of net periodic benefit cost include the following: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, 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 ) The Company made aggregate contributions of $9,995 and $34,445 to its defined benefit retirement and retiree health and life insurance plans during the six months ended July 1, 2018 and July 2, 2017 , respectively. The Company expects to make additional aggregate contributions of approximately $14,500 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2018. The Company recognized settlement losses totaling $645 during the six months ended July 1, 2018 resulting from payments made to certain participants of the Company's Canadian pension plan who elected the lump sum option of distribution upon retirement. Settlement losses in the prior year totaling $31,074 resulted from the Company's initiative to settle the pension obligation of certain terminated vested participants in the U.S. qualified retirement plans, through a lump sum payment or the purchase of an annuity. Sonoco Retirement Contribution (SRC) The SRC, which is funded annually in the first quarter, totaled $14,151 during the six months ended July 1, 2018 , and $14,066 during the six months ended July 2, 2017 . No additional SRC contributions are expected during the remainder of 2018. The Company recognized expense related to the SRC of $3,855 and $3,820 for the quarters ended July 1, 2018 and July 2, 2017 , respectively, and $7,887 and $7,691 , for the six-month periods ended July 1, 2018 and July 2, 2017 , respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 01, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the three- and six- month periods ending July 1, 2018 , was 26.1% and 25.2% , respectively, and its effective rate for the three- and six- month periods ending July 2, 2017 , was 29.6% and 31.4% , respectively. The rates for the three- and six-month periods ending July 1, 2018 varied from the U.S. statutory rate due primarily to the new international tax regime of the U.S. as part of the enactment of the Tax Cuts and Jobs Act (Tax Act) as well as the effect of state income taxes. The rates for the three- and six-month periods ending July 2, 2017 varied from the U.S. statutory rate due primarily to the favorable effect of certain international operations that were subject to tax rates generally lower than the U.S. rate. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations where a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company recognized the provisional tax impacts related to deemed repatriated earnings and the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements for the year ended December 31, 2017. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Act. No subsequent adjustments were made during the six months ended July 1, 2018 , to the provisional amounts recorded in December. Any such adjustments will be recorded to tax expense in 2018 in the quarter the analysis is completed. The Company and/or its subsidiaries file federal, state and local income tax returns in the United States and various foreign jurisdictions. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years before 2012. The Company is currently under audit by the Internal Revenue Service for the 2012 and 2013 tax years. The Company’s reserve for uncertain tax benefits has increased by approximately $1,400 since December 31, 2017 , due primarily to an increase in reserves related to existing uncertain tax positions. The Company believes that it is reasonably possible that the amount reserved for unrecognized tax benefits at July 1, 2018 will decrease by approximately $800 over the next twelve months. This change includes the anticipated increase in reserves related to existing positions offset by settlements of issues currently under examination and the release of existing reserves due to the expiration of the statute of limitations. Although the Company’s estimate for the potential outcome for any uncertain tax issue is highly judgmental, management believes that any reasonably foreseeable outcomes related to these matters have been adequately provided for. However, future results may include favorable or unfavorable adjustments to estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. Additionally, the jurisdictions in which earnings or deductions are realized may differ from current estimates. As a result, the Company’s effective tax rate may fluctuate significantly on a quarterly basis. The Company has operations and pays taxes in many countries outside of the U.S. and taxes on those earnings are subject to varying rates. The Company is not dependent upon the favorable benefit of any one jurisdiction to an extent that the loss of such benefit would have a material effect on the Company’s overall effective tax rate. As previously disclosed, the Company received a draft Notice of Proposed Adjustment (“NOPA”) from the Internal Revenue Service (IRS) in February 2017 proposing an adjustment to income for the 2013 tax year based on the IRS's recharacterization of a distribution of an intercompany note made in 2012, and the subsequent repayment of the note over the course of 2013, as if it were a cash distribution made in 2013. In March 2017, the Company received a draft NOPA proposing penalties of $18,000 associated with the IRS’s recharacterization, as well as an Information Document Request (“IDR”) requesting the Company’s analysis of why such penalties should not apply. The Company responded to this IDR in April 2017. On October 5, 2017, the Company received two revised draft NOPAs proposing the same adjustments and penalties as in the prior NOPAs. On November 14, 2017, the Company received two final NOPAs proposing the same adjustments and penalties as in the prior draft NOPAs. On November 20, 2017, the Company received a Revenue Agent's Report (“RAR”) that included the same adjustments and penalties as in the NOPAs. At the time of the distribution in 2012, it was characterized as a dividend to the extent of earnings and profits, with the remainder as a tax free return of basis and taxable capital gain. As the IRS proposes to recharacterize the distribution, the entire distribution would be characterized as a dividend. The incremental tax liability associated with the income adjustment proposed in the RAR would be approximately $89,000 , excluding interest and the previously referenced penalties. On January 22, 2018, the Company filed a protest to the proposed deficiency with the IRS. The Company received a rebuttal of its protest from the IRS on July 10, 2018, and the matter will now be referred to the Appeals Division of the IRS. The Company strongly believes the position of the IRS with regard to this matter is inconsistent with applicable tax laws and existing Treasury regulations, and that the Company's previously reported income tax provision for the year in question is appropriate. However, there can be no assurance that this matter will be resolved in the Company's favor. Regardless of whether the matter is resolved in the Company's favor, the final resolution of this matter could be expensive and time consuming to defend and/or settle. While the Company believes that the amount of tax originally paid with respect to this distribution is correct, and accordingly has not provided additional reserve for tax uncertainty, there is still a possibility that an adverse outcome of the matter could have a material effect on its results of operations and financial condition. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jul. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company adopted ASU 2014-09, "Revenue from Contracts with Customers," as of January 1, 2018. The impact of the adoption was the recognition of a $1,721 increase in the Company's beginning retained earnings. See impact of adoption in Note 3 and additional discussion in Note 2 to these condensed consolidated financial statements. The Company records revenue when control is transferred to the customer, which is either upon shipment or over time in cases where the Company is entitled to payment for products produced that are customer specific without alternative use. The Company recognizes over time revenue under the output method as goods are produced. Revenue that is recognized at a point in time is recognized when the customer obtains control of the goods. Customers obtain control either when goods are delivered to the customer facility, if the Company is responsible for arranging transportation, or when picked up by the customer's designated carrier. The Company commonly enters into Master Supply Arrangements (MSA) with customers to provide goods and/or services over specific time periods. Customers submit purchase orders with quantities and prices to create a contract for accounting purposes. Shipping and handling expenses are included in "Cost of Sales," and freight charged to customers is included in "Net Sales" in the Company's Condensed Consolidated Statements of Income. The Company has rebate agreements with certain customers. These rebates are recorded as reductions of sales and are accrued using sales data and rebate percentages specific to each customer agreement. Accrued customer rebates are included in "Accrued expenses and other" in the Company's Condensed Consolidated Balance Sheets. Payment terms under the Company's arrangements are short term in nature, generally no longer than 120 days. The Company does provide prompt payment discounts to certain customers if invoices are paid within a predetermined period. Prompt payment discounts are treated as a reduction of revenue and are determinable within a short period of the sale. The following table sets forth information about receivables, contract assets and liabilities from contracts with customers. The balances of the contract assets and liabilities are located in "Other receivables" and "Accrued expenses and other" on the Condensed Consolidated Balance Sheets. July 1, 2018 January 1, 2018 As adjusted Contract Assets $ 48,765 $ 45,877 Contract Liabilities $ (5,737 ) $ (5,215 ) Significant changes in the contract assets and liabilities balances during the period were as follows: 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 ) Contract assets and liabilities are generally short in duration given the nature of products produced by the Company. Contract assets represents goods produced without alternative use for which the Company is entitled to payment with margin prior to shipment. Upon shipment, the Company is entitled to bill the customer, and therefore amounts included in contract assets will be reduced with the recording of an account receivable as they represent an unconditional right to payment. Contract liabilities represent revenue deferred due to pricing mechanisms utilized by the Company in certain multi-year arrangements. Generally the Company will defer revenue during the initial term of the arrangement, and will release the deferral over the back half of the contract term. The Company's reportable segments are aligned by product nature as disclosed in Note 15. The following table sets forth information about revenue disaggregated by primary geographic regions, and timing of revenue recognition for the three-month period ended July 1, 2018 . The table also includes a reconciliation of disaggregated revenue with reportable segments. 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 The following table sets forth information about revenue disaggregated by primary geographic regions, and timing of revenue recognition for the six-month period ended July 1, 2018 . The table also includes a reconciliation of disaggregated revenue with reportable segments. 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 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jul. 01, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company reports its financial results in four reportable segments: Consumer Packaging, Display and Packaging, Paper and Industrial Converted Products, and Protective Solutions. The Consumer Packaging segment includes the following products and services: round and shaped rigid containers and trays (both composite and thermoformed plastic); extruded and injection-molded plastic products; printed flexible packaging; global brand artwork management; and metal and peelable membrane ends and closures. The Display and Packaging segment includes the following products and services: point-of-purchase displays; supply chain management services; retail packaging, including printed backer cards, thermoformed blisters and heat sealing equipment; and paperboard specialties, such as coasters and glass covers. The Paper and Industrial Converted Products segment includes the following products: paperboard tubes and cores; fiber-based construction tubes and forms; wooden, metal and composite wire and cable reels and spools; and recycled paperboard, linerboard, corrugating medium, recovered paper and material recycling services. The Protective Solutions segment includes the following products: custom-engineered, paperboard-based and expanded foam protective packaging and components; and temperature-assured packaging. The following table sets forth net sales, intersegment sales and operating profit for the Company’s reportable segments. “Segment operating profit” is defined as the segment’s portion of “Operating profit” excluding restructuring charges, asset impairment charges, acquisition-related costs, and certain other items, if any, the exclusion of which the Company believes improves comparability and analysis of the financial performance of the business. General corporate expenses have been allocated as operating costs to each of the Company’s reportable segments. SEGMENT FINANCIAL INFORMATION Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, 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 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 01, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Pursuant to U.S. GAAP, accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and that the amounts are reasonably estimable. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings from a variety of sources. Some of these exposures, as discussed below, have the potential to be material. Environmental Matters The Company is subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which it operates. Spartanburg In connection with its acquisition of Tegrant in November 2011, the Company identified potential environmental contamination at a site in Spartanburg, South Carolina. The total remediation cost of the Spartanburg site was estimated to be $17,400 at the time of acquisition and an accrual in this amount was recorded on Tegrant’s opening balance sheet. Since the acquisition, the Company has spent a total of $1,116 on remediation of the Spartanburg site. During previous years, the Company has increased its reserves for this site by a total of $17 in order to reflect its best estimate of what it is likely to pay in order to complete the remediation. At July 1, 2018 and December 31, 2017 , the Company's accrual for environmental contingencies related to the Spartanburg site totaled $16,301 and $16,504 , respectively. The Company cannot currently estimate its potential liability, damages or range of potential loss, if any, beyond the amounts accrued with respect to this exposure. However, the Company does not believe that the resolution of this matter has a reasonable possibility of having a material adverse effect on the Company's financial statements. Other environmental matters The Company has been named as a potentially responsible party at several other environmentally contaminated sites. All of the sites are also the responsibility of other parties. The potential remediation liabilities are shared with such other parties, and, in most cases, the Company’s share, if any, cannot be reasonably estimated at the current time. However, the Company does not believe that the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company's financial statements. At July 1, 2018 and December 31, 2017 , the Company's accrual for these other sites totaled $3,338 and $3,802 , respectively. Summary As of July 1, 2018 and December 31, 2017 , the Company (and its subsidiaries) had accrued $19,639 and $20,306 , respectively, related to environmental contingencies. These accruals are included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets. Other Legal Matters In addition to those matters described above, the Company is subject to other various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters could differ from management’s expectations, the Company does not believe the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s financial statements. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Jul. 01, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2 017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities," which expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The update to the standard is effective for periods beginning after December 15, 2018, with early adoption permitted in any interim period after issuance of this update. T he Company implemented this ASU effective January 1, 2018, and recorded a cumulative adjustment to retained earnings of $176 as of that date in order to remove previously recognized ineffectiveness losses on contracts outstanding as of the date of adoption. In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires an employer to report service cost in the same line item as other compensation costs arising from employees during the period. The other components of net benefit cost as defined are required to be presented separately from the service cost component and outside a subtotal of income from operations, if one is presented, or disclosed. This update also allows only the service cost component to be eligible for capitalization when applicable and is effective for periods beginning after December 15, 2017. The amendments are to be applied retrospectively for the presentation of the components of net benefit cost in the income statement and prospectively for the capitalization of the service cost component. T he Company implemented this ASU effective January 1, 2018, modifying its income statement presentation of the components of net benefit cost accordingly, including the retrospective application to previously reported results. As a result of the retrospective application, the amounts previously reported in "Cost of sales" and "Selling, general and administrative expenses" for the three months ended July 2, 2017 , were reduced by $2,510 and $31,900 , respectively, and "Operating profit" increased by $34,410 , in order to conform to the current presentation. The comparable changes for the six months ended July 2, 2017 , were $5,267 , $32,829 , and $38,096 , for "Cost of sales," "Selling, general and administrative expenses," and "Operating profit," respectively. No change was required to the Company's historical policy regarding the capitalization of such costs. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” eliminating the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under ASU 2017-04, goodwill impairment testing is performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted, and should be applied on a prospective basis. The Company elected early adoption of the standard effective January 1, 2018. Any future goodwill impairment, should it occur, will be determined in accordance with this ASU. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory," which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset upon transfer other than inventory, eliminating the current recognition exception. Prior to this ASU, GAAP prohibited the recognition of current and deferred income taxes for intra-entity asset transfers until the asset was sold to an outside party. The recognition prohibition was an exception to the principle of comprehensive recognition of current and deferred income taxes in GAAP. This guidance became effective for the Company on January 1, 2018, and did not have a material effect on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, " Classification of Certain Cash Receipts and Cash Payments ," providing clarification on eight cash flow classification issues, including 1) debt prepayment or debt extinguishment costs, 2) settlement of relatively insignificant debt instruments, 3) contingent consideration payments, 4) insurance claim settlements, 5) life insurance settlements, 6) distributions received from equity method investees, 7) beneficial interests in securitization transactions, and 8) separately identifiable cash flows. This guidance, which applies to both interim and annual periods, became effective for the Company on January 1, 2018. As a result of the retrospective application, insurance proceeds totaling $1,104 received during the six months ended July 2, 2017 previously reported in "Cash Flows from Operating Activities" were reclassified to "Cash Flows from Investing Activities." Otherwise, adoption of the standard did not have a material effect on the Company's consolidated financial statements, as the Company either did not realize any cash flows from these types of activities, such amounts were immaterial, or the prescribed guidance did not differ from its current practice. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers, Principal versus Agent Considerations (Reporting Revenue Gross versus Net)," which provides guidance on recording revenue on a gross basis versus a net basis based on the determination of whether an entity is a principal or an agent when another party is involved in providing goods or services to a customer. The amendments in this update affect the guidance in ASU No. 2014-09 and are effective in the same time frame as ASU 2014-09 as discussed below. In February 2016, the FASB issued ASU 2016-02, "Leases" which changes accounting for leases and requires lessees to recognize the assets and liabilities arising from all leases, including those classified as operating leases under previous accounting guidance on the balance sheet and requires disclosure of key information about leasing arrangements to increase transparency and comparability among organizations. The accounting for lessors does not fundamentally change except for changes to conform and align guidance to the lessee guidance. The guidance is effective for reporting periods beginning after December 15, 2018, including interim periods within those fiscal years and requires retrospective application. The Company is still assessing the impact of ASU 2016-02 on its consolidated financial statements, but expects the adoption of this ASU to have a material impact on its consolidated balance sheet for the initial recognition of the right-of-use asset and lease liability associated with operating leases that are not currently recognized on the balance sheet under present U.S. GAAP. In May 2014, the FASB issued ASU 2014-09, "Revenue From Contracts With Customers," which changes the definitions/criteria used to determine when revenue should be recognized from being based on risks and rewards to being based on control. Among other changes, ASU 2014-09 changes the manner in which variable consideration is recognized, requires recognition of the time value of money when payment terms exceed one year, provides clarification on accounting for contract costs, and expands disclosure requirements. The Company adopted ASU 2014-09 in the first quarter of 2018 following the modified retrospective transition method and, as such, recorded a cumulative adjustment of $1,721 to beginning retained earnings for the period. The most significant impacts to the Company's financial statements from the adoption of this ASU are the acceleration of revenue recognition compared to prior standards for arrangements under which the Company is producing customer-specific products without alternative use and would be entitled to payment for work completed, including a reasonable margin, and the recognition of material customer contract rights for certain agreed-upon future price concessions. During the three- and six- month periods ended July 1, 2018 , there have been no other newly issued nor newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at July 1, 2018 , there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements. |
Changes in Accounting Policy (T
Changes in Accounting Policy (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Effect of New Accounting Pronouncements | The details of the significant changes and quantitative impact of the changes are set out below. 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 The following table summarizes the impact of the adoption of Topic 606 on the Company's Condensed Consolidated Balance Sheet as of July 1, 2018 : July 1, 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 The following table summarizes the impact of the adoption of Topic 606 on the Company's Condensed Consolidated Statement of Income for the three- and six- months ending July 1, 2018 : Three Months Ended Six Months Ended July 1, Adjustments Balances without Adoption of Topic 606 July 1, 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 The following table summarizes the impact of the adoption of Topic 606 on the Company's Condensed Consolidated Statement of Comprehensive Income for the three- and six- months ending July 1, 2018 : Three Months Ended Six Months Ended July 1, Adjustments Balances without Adoption of Topic 606 July 1, 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 The following table summarizes the impact of the adoption of Topic 606 on the Company's Condensed Consolidated Statement of Cash Flows for the six months ended July 1, 2018 : 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 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Business Combinations [Abstract] | |
Schedule of preliminary fair values of assets acquired and liabilities assumed | The preliminary fair values of the assets acquired and liabilities assumed in connection with the Highland acquisition are as follows: 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 |
Schedule of Proforma Supplemental Information | This pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisitions had been completed as of the beginning of 2016, nor are they necessarily indicative of future consolidated results. (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 The following table presents the aggregate, unaudited financial results for Packaging Holdings and Clear Lam from their respective dates of acquisition: (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 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Equity [Abstract] | |
Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, 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 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The average number of SARs that were not dilutive and therefore not included in the computation of diluted earnings per share during the three- and six- month periods ended July 1, 2018 and July 2, 2017 was as follows: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, Anti-dilutive stock appreciation rights 1,043 532 891 444 |
Restructuring and Asset Impai27
Restructuring and Asset Impairment (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Restructuring and Related Activities [Abstract] | |
Total Restructuring and Asset Impairment Charges/(Credits), Net | Following are the total restructuring and asset impairment charges, net of adjustments, recognized by the Company during the periods presented: 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 |
Actions and Related Expenses by Segment and by Type Incurred and Estimated for Given Years | Below is a summary of expenses/(income) incurred by segment for 2016 and Earlier Actions for the three- and six- month periods ended July 1, 2018 and July 2, 2017 . 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 Below is a summary of 2017 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2018 2017 Total Incurred Estimated 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 Below is a summary of 2018 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2018 Actions Second Quarter 2018 Total Estimated 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 |
Restructuring Accrual Activity for Given Years | The following table sets forth the activity in the 2018 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: 2018 Actions Severance Termination Asset Impairment/ Disposal Other Costs Total Accrual Activity 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 The following table sets forth the activity in the 2017 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: 2017 Actions Severance Asset Other 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 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the six months ended July 1, 2018 and July 2, 2017 : 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 ) |
Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss | The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three- and six- month periods ended July 1, 2018 and July 2, 2017 : Amount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended Details about Accumulated Other Comprehensive Loss Components July 1, July 2, July 1, July 2, Affected Line Item in the Condensed Consolidated Statements of Income Gains and losses on cash flow hedges Foreign exchange contracts $ (240 ) $ 2,243 $ 570 $ 3,283 Net sales Foreign exchange contracts 174 (1,317 ) (353 ) (2,042 ) Cost of sales Commodity contracts 68 463 10 711 Cost of sales 2 1,389 227 1,952 Income before income taxes (1 ) (497 ) (45 ) (695 ) Provision for income taxes $ 1 $ 892 $ 182 $ 1,257 Net income Defined benefit pension items Effect of settlement loss (a) $ (645 ) $ (31,074 ) $ (645 ) $ (31,074 ) Selling, general and Amortization of defined benefit pension items (a) (8,983 ) (9,668 ) (18,284 ) (19,785 ) Non-operating pension (income)/cost (9,628 ) (40,742 ) (18,929 ) (50,859 ) Income before income taxes 2,419 17,224 4,758 20,966 Provision for income taxes $ (7,209 ) $ (23,518 ) $ (14,171 ) $ (29,893 ) Net income Total reclassifications for the period $ (7,208 ) $ (22,626 ) $ (13,989 ) $ (28,636 ) Net income (a) See Note 12 for additional details. Six months ended July 1, 2018 Six months ended July 2, 2017 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 $ 570 $ (343 ) $ 3,283 $ (1,331 ) 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 |
Before and After Tax Amounts for Comprehensive Income (Loss) Components | The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the three-month periods ended July 1, 2018 and July 2, 2017 : 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 The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the six-month periods ended July 1, 2018 and July 2, 2017 : 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 |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill by Segment | A summary of the changes in goodwill by segment for the six months ended July 1, 2018 is as follows: 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 |
Summary of Other Intangible Assets | A summary of other intangible assets as of July 1, 2018 and December 31, 2017 is as follows: July 1, December 31, Other Intangible Assets, gross: Patents $ 21,969 $ 21,957 Customer lists 535,038 497,634 Trade names 26,987 25,148 Proprietary technology 20,763 20,779 Land use rights 289 298 Other 2,133 1,740 Other Intangible Assets, gross $ 607,179 $ 567,556 Accumulated Amortization: Patents (8,231 ) (7,187 ) Customer lists (227,296 ) (210,212 ) Trade names (5,777 ) (4,427 ) Proprietary technology (14,084 ) (13,192 ) Land use rights (49 ) (47 ) Other (1,327 ) (1,196 ) Total Accumulated Amortization $ (256,764 ) $ (236,261 ) Other Intangible Assets, net $ 350,415 $ 331,295 |
Financial Instruments and Der30
Financial Instruments and Derivatives (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Carrying Amounts and Fair Values of Financial Instruments | The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value. 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 |
Net Positions of Foreign Contracts | The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales, purchases, and capital spending forecast to occur in 2018. The net positions of these contracts at July 1, 2018 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 3,821,059 Mexican peso purchase 351,178 Polish zloty purchase 217,049 Russian ruble purchase 31,506 Canadian dollar purchase 26,485 British pound purchase 5,535 Turkish lira purchase 5,194 New Zealand dollar sell (262 ) Australian dollar sell (709 ) Euro sell (51,137 ) |
Net Positions of Other Derivatives Contracts | The net positions of these contracts at July 1, 2018 , were as follows (in thousands): Currency Action Quantity Colombian peso purchase 7,353,411 Mexican peso purchase 151,893 Canadian dollar sell (52,228 ) |
Location and Fair Values of Derivative Instruments | The following table sets forth the location and fair values of the Company’s derivative instruments at July 1, 2018 and December 31, 2017 : Description Balance Sheet Location July 1, December 31, 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 ) |
Effect of Derivative Instruments on Financial Performance | Description Amount of Gain or (Loss) Recognized in OCI on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income Derivatives in Cash Flow Hedging Relationships: Three months ended July 1, 2018 Foreign Exchange Contracts $ (4,407 ) Net sales $ (240 ) Cost of sales $ 174 Commodity Contracts $ 1,301 Cost of sales $ 68 Three months ended July 2, 2017 Foreign Exchange Contracts $ 509 Net sales $ 2,243 Cost of sales $ (1,317 ) Commodity Contracts $ 93 Cost of sales $ 463 Description Gain or (Loss) Recognized Location of Gain or (Loss) Recognized in Income Statement Derivatives not Designated as Hedging Instruments: Three months ended July 1, 2018 Foreign Exchange Contracts $ — Cost of sales $ 1,270 Selling, general and administrative Three months ended July 2, 2017 Foreign Exchange Contracts $ — Cost of sales $ 1,665 Selling, general and administrative Three months ended July 1, 2018 Three months ended July 2, 2017 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 $ (240 ) $ 242 $ 2,243 $ (854 ) 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 The following tables set forth the effect of the Company’s derivative instruments on financial performance for the six months ended July 1, 2018 and July 2, 2017 : 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 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 |
Reclassification of Gains and Losses | The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three- and six- month periods ended July 1, 2018 and July 2, 2017 : Amount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended Details about Accumulated Other Comprehensive Loss Components July 1, July 2, July 1, July 2, Affected Line Item in the Condensed Consolidated Statements of Income Gains and losses on cash flow hedges Foreign exchange contracts $ (240 ) $ 2,243 $ 570 $ 3,283 Net sales Foreign exchange contracts 174 (1,317 ) (353 ) (2,042 ) Cost of sales Commodity contracts 68 463 10 711 Cost of sales 2 1,389 227 1,952 Income before income taxes (1 ) (497 ) (45 ) (695 ) Provision for income taxes $ 1 $ 892 $ 182 $ 1,257 Net income Defined benefit pension items Effect of settlement loss (a) $ (645 ) $ (31,074 ) $ (645 ) $ (31,074 ) Selling, general and Amortization of defined benefit pension items (a) (8,983 ) (9,668 ) (18,284 ) (19,785 ) Non-operating pension (income)/cost (9,628 ) (40,742 ) (18,929 ) (50,859 ) Income before income taxes 2,419 17,224 4,758 20,966 Provision for income taxes $ (7,209 ) $ (23,518 ) $ (14,171 ) $ (29,893 ) Net income Total reclassifications for the period $ (7,208 ) $ (22,626 ) $ (13,989 ) $ (28,636 ) Net income (a) See Note 12 for additional details. Six months ended July 1, 2018 Six months ended July 2, 2017 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 $ 570 $ (343 ) $ 3,283 $ (1,331 ) 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 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured on Recurring Basis | The following table sets forth information regarding the Company’s financial assets and financial liabilities, excluding retirement and postretirement plan assets, measured at fair value on a recurring basis: Description July 1, 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, 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 $ — $ — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost include the following: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, 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 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Receivables, Contracts Assets and Liabilities From Contracts With Customers | The following table sets forth information about receivables, contract assets and liabilities from contracts with customers. The balances of the contract assets and liabilities are located in "Other receivables" and "Accrued expenses and other" on the Condensed Consolidated Balance Sheets. July 1, 2018 January 1, 2018 As adjusted Contract Assets $ 48,765 $ 45,877 Contract Liabilities $ (5,737 ) $ (5,215 ) Significant changes in the contract assets and liabilities balances during the period were as follows: 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 ) |
Disaggregation of Revenue | The following table sets forth information about revenue disaggregated by primary geographic regions, and timing of revenue recognition for the three-month period ended July 1, 2018 . The table also includes a reconciliation of disaggregated revenue with reportable segments. 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 The following table sets forth information about revenue disaggregated by primary geographic regions, and timing of revenue recognition for the six-month period ended July 1, 2018 . The table also includes a reconciliation of disaggregated revenue with reportable segments. 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 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Segment Reporting [Abstract] | |
Segment Financial Information | SEGMENT FINANCIAL INFORMATION Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, 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 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of sales | $ (1,089,913) | $ (1,002,289) | $ (2,143,498) | $ (1,951,634) | |
Decrease in selling, general and administrative expenses | (141,031) | (125,308) | (278,472) | (250,517) | |
Operating profit | $ 131,862 | 105,180 | 241,960 | 198,839 | |
Reclassification from Net cash provided by operating activities | (251,248) | (103,178) | |||
Reclassification to Net cash used in investing activities | $ (223,434) | (312,963) | |||
Accounting Standards Update 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of sales | 2,510 | 5,267 | |||
Decrease in selling, general and administrative expenses | 31,900 | 32,829 | |||
Operating profit | $ 34,410 | 38,096 | |||
Accounting Standards Update 2016-15 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification from Net cash provided by operating activities | 1,104 | ||||
Reclassification to Net cash used in investing activities | $ 1,104 | ||||
Retained Earnings | Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect, increase (decrease) | $ 1,721 | ||||
New Accounting Pronouncement, Early Adoption, Effect | Retained Earnings | Accounting Standards Update 2017-12 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect, increase (decrease) | $ 176 |
Changes in Accounting Policy -
Changes in Accounting Policy - Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | [1] |
Current Assets | ||||
Trade accounts receivable, net of allowances | $ 768,338 | $ 725,251 | ||
Other receivables | 90,954 | 64,561 | ||
Inventories, net: | ||||
Finished and in process | 162,766 | 196,204 | ||
Total Assets | 4,622,968 | 4,557,721 | ||
Current Liabilities | ||||
Accrued expenses and other | 285,096 | 283,355 | ||
Total Current Liabilities | 1,030,072 | 999,970 | ||
Deferred Income Taxes | 79,891 | 74,073 | ||
Sonoco Shareholders’ Equity | ||||
Retained earnings | 2,120,529 | 2,036,006 | ||
Total Sonoco Shareholders’ Equity | 1,767,831 | 1,707,066 | ||
Total Equity | 1,790,265 | 1,730,060 | ||
Total Liabilities and Equity | 4,622,968 | $ 4,557,721 | ||
Before Topic 606 | ||||
Current Assets | ||||
Trade accounts receivable, net of allowances | 763,151 | $ 728,887 | ||
Other receivables | 46,607 | 105,912 | ||
Inventories, net: | ||||
Finished and in process | 203,087 | 158,757 | ||
Total Assets | 4,613,755 | 4,565,261 | ||
Current Liabilities | ||||
Accrued expenses and other | 279,359 | 288,570 | ||
Total Current Liabilities | 1,024,335 | 1,005,185 | ||
Deferred Income Taxes | 78,987 | 74,677 | ||
Sonoco Shareholders’ Equity | ||||
Retained earnings | 2,117,957 | 2,037,727 | ||
Total Sonoco Shareholders’ Equity | 1,765,259 | 1,708,787 | ||
Total Equity | 1,787,693 | 1,731,781 | ||
Total Liabilities and Equity | 4,613,755 | 4,565,261 | ||
Accounting Standards Update 2014-09 | Adjustments due to Topic 606 | ||||
Current Assets | ||||
Trade accounts receivable, net of allowances | (5,187) | 3,636 | ||
Other receivables | (44,347) | 41,351 | ||
Inventories, net: | ||||
Finished and in process | 40,321 | (37,447) | ||
Total Assets | (9,213) | 7,540 | ||
Current Liabilities | ||||
Accrued expenses and other | (5,737) | 5,215 | ||
Total Current Liabilities | (5,737) | 5,215 | ||
Deferred Income Taxes | (904) | 604 | ||
Sonoco Shareholders’ Equity | ||||
Retained earnings | (2,572) | 1,721 | ||
Total Sonoco Shareholders’ Equity | (2,572) | 1,721 | ||
Total Equity | (2,572) | 1,721 | ||
Total Liabilities and Equity | $ (9,213) | $ 7,540 | ||
[1] | 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. |
Changes in Accounting Policy 37
Changes in Accounting Policy - Condensed Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net sales | $ 1,366,373 | $ 1,240,674 | $ 2,670,560 | $ 2,412,998 |
Cost of sales | 1,089,913 | 1,002,289 | 2,143,498 | 1,951,634 |
Gross profit | 276,460 | 238,385 | 527,062 | 461,364 |
Operating profit | 131,862 | 105,180 | 241,960 | 198,839 |
Income before income taxes | 116,222 | 57,978 | 213,256 | 135,893 |
Provision for income taxes | 30,293 | 17,167 | 53,649 | 42,706 |
Income before equity in earnings of affiliates | 85,929 | 40,811 | 159,607 | 93,187 |
Equity in earnings of affiliates, net of tax | 3,716 | 2,845 | 4,963 | 4,799 |
Net income | 89,645 | 43,656 | 164,570 | 97,986 |
Net income attributable to noncontrolling interests | (233) | (531) | (1,103) | (1,128) |
Net income attributable to Sonoco | 89,412 | 43,125 | 163,467 | 96,858 |
Selling, general and administrative expenses | 141,031 | 125,308 | 278,472 | 250,517 |
Restructuring/Asset impairment charges | 3,567 | 7,897 | 6,630 | 12,008 |
Interest expense | 16,217 | 13,823 | 31,012 | 26,908 |
Interest income | 1,090 | $ 1,031 | 2,530 | $ 2,058 |
Accounting Standards Update 2014-09 | Adjustments due to Topic 606 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net sales | (966) | (4,025) | ||
Cost of sales | (252) | (2,874) | ||
Gross profit | (714) | (1,151) | ||
Operating profit | (714) | (1,151) | ||
Income before income taxes | (714) | (1,151) | ||
Provision for income taxes | (186) | (299) | ||
Income before equity in earnings of affiliates | (528) | (852) | ||
Net income | (528) | (852) | ||
Net income attributable to Sonoco | (528) | (852) | ||
Accounting Standards Update 2014-09 | Before Topic 606 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net sales | 1,365,407 | 2,666,535 | ||
Cost of sales | 1,089,661 | 2,140,624 | ||
Gross profit | 275,746 | 525,911 | ||
Operating profit | 131,148 | 240,809 | ||
Income before income taxes | 115,508 | 212,105 | ||
Provision for income taxes | 30,107 | 53,350 | ||
Income before equity in earnings of affiliates | 85,401 | 158,755 | ||
Net income | 89,117 | 163,718 | ||
Net income attributable to Sonoco | $ 88,884 | $ 162,615 |
Changes in Accounting Policy 38
Changes in Accounting Policy - Condensed Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net income | $ 89,645 | $ 43,656 | $ 164,570 | $ 97,986 | |
Foreign currency translation adjustments | (64,587) | 29,526 | (41,604) | 60,362 | |
Other comprehensive (loss)/income | (57,477) | 65,719 | (27,630) | 104,905 | |
Comprehensive income | 32,168 | 109,375 | 136,940 | 202,891 | |
Comprehensive income attributable to Sonoco | 34,042 | $ 109,003 | 137,514 | 201,242 | |
Accounting Standards Update 2014-09 | Adjustments due to Topic 606 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net income | (528) | (852) | |||
Foreign currency translation adjustments | $ 376 | 309 | |||
Other comprehensive (loss)/income | $ 376 | 309 | |||
Comprehensive income | (152) | (543) | |||
Comprehensive income attributable to Sonoco | (152) | (543) | |||
Accounting Standards Update 2014-09 | Before Topic 606 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net income | 89,117 | 163,718 | |||
Foreign currency translation adjustments | (41,295) | (64,211) | |||
Other comprehensive (loss)/income | (27,321) | $ (57,101) | |||
Comprehensive income | 32,016 | 136,397 | |||
Comprehensive income attributable to Sonoco | $ 33,890 | $ 136,971 |
Changes in Accounting Policy 39
Changes in Accounting Policy - Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Cash Flows from Operating Activities: | ||||
Net income | $ 89,645 | $ 43,656 | $ 164,570 | $ 97,986 |
Trade accounts receivable | (45,032) | (55,138) | ||
Inventories | (16,741) | (12,795) | ||
Other assets and liabilities | 16,557 | 1,068 | ||
Accrued expenses | 1,012 | (29,289) | ||
Income taxes payable and other income tax items | (1,031) | (11,430) | ||
Net cash provided by operating activities | 251,248 | $ 103,178 | ||
Adjustments due to Topic 606 | Accounting Standards Update 2014-09 | ||||
Cash Flows from Operating Activities: | ||||
Net income | (528) | (852) | ||
Trade accounts receivable | 1,551 | |||
Inventories | (2,874) | |||
Other assets and liabilities | 2,996 | |||
Accrued expenses | (522) | |||
Income taxes payable and other income tax items | (299) | |||
Net cash provided by operating activities | 0 | |||
Before Topic 606 | Accounting Standards Update 2014-09 | ||||
Cash Flows from Operating Activities: | ||||
Net income | $ 89,117 | 163,718 | ||
Trade accounts receivable | (43,481) | |||
Inventories | (19,615) | |||
Other assets and liabilities | 19,553 | |||
Accrued expenses | 490 | |||
Income taxes payable and other income tax items | (1,330) | |||
Net cash provided by operating activities | $ 251,248 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Thousands | Apr. 12, 2020USD ($) | Apr. 12, 2019USD ($) | May 25, 2018USD ($)employeecountryfacility | Apr. 12, 2018USD ($)installment_payment | Dec. 31, 2018USD ($) | Jul. 01, 2018USD ($) | Jul. 02, 2017USD ($) | Jul. 01, 2018USD ($) | Jul. 02, 2017USD ($) |
Business Acquisition [Line Items] | |||||||||
Cash consideration | $ 141,305 | $ 217,489 | |||||||
Acquisition related costs | $ 3,091 | $ 945 | 3,636 | 5,270 | |||||
Rigid paper facility to be acquired | 88,852 | $ 98,819 | |||||||
Term Loan Facility | Bank of America | |||||||||
Business Acquisition [Line Items] | |||||||||
Proceeds from lines of credit | $ 100,000 | ||||||||
Highland Packaging Solution | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration | 148,805 | ||||||||
Cash consideration | 141,305 | ||||||||
Contingent purchase liability | $ 7,500 | ||||||||
Number of installment payments | installment_payment | 2 | ||||||||
Highland Packaging Solution | Forecast | |||||||||
Business Acquisition [Line Items] | |||||||||
Payment for contingent consideration | $ 2,500 | $ 5,000 | |||||||
Clear Lam Packaging, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Decrease to property plant and equipment | 1,168 | ||||||||
Decrease to other intangible assets | 1,300 | ||||||||
Increase to other long-term liabilities | 1,385 | ||||||||
Increase to goodwill | 4,341 | $ 4,341 | |||||||
Decrease to other net tangible assets | 488 | ||||||||
Plastic Packaging Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Increase to goodwill | 7,180 | ||||||||
Decrease to deferred tax assets | 6,516 | ||||||||
Increase to long-term debt | $ 664 | ||||||||
Conitex Sonoco Holding Bvi Ltd | |||||||||
Business Acquisition [Line Items] | |||||||||
Additional interest acquired (percent) | 70.00% | ||||||||
Cash consideration to acquire remaining interest | $ 133,000 | ||||||||
Texpack, Inc. | Forecast | |||||||||
Business Acquisition [Line Items] | |||||||||
Rigid paper facility to be acquired | $ 10,000 | ||||||||
Conitex Sonoco Holding Bvi Ltd | Conitex Sonoco Holding Bvi Ltd | |||||||||
Business Acquisition [Line Items] | |||||||||
Approximate number of employees | employee | 1,250 | ||||||||
Number of manufacturing facilities | facility | 13 | ||||||||
Number of countries in which entity operates | country | 10 | ||||||||
Conitex Sonoco Holding Bvi Ltd | Paper mill | Conitex Sonoco Holding Bvi Ltd | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of manufacturing facilities | facility | 4 | ||||||||
Conitex Sonoco Holding Bvi Ltd | Cone and tube converting | Conitex Sonoco Holding Bvi Ltd | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of manufacturing facilities | facility | 7 | ||||||||
Conitex Sonoco Holding Bvi Ltd | Other production | Conitex Sonoco Holding Bvi Ltd | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of manufacturing facilities | facility | 2 |
Acquisitions - Schedule of prel
Acquisitions - Schedule of preliminary fair values of assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Apr. 12, 2018 | Dec. 31, 2017 | [1] |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,287,839 | $ 1,241,875 | ||
Highland Packaging Solution | ||||
Business Acquisition [Line Items] | ||||
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 | |||
[1] | 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. |
Acquisitions - Schedule of Prof
Acquisitions - Schedule of Proforma Supplemental Information (Details) - Packaging Holding and Clear Lam - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 02, 2017 | Jul. 02, 2017 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net sales | $ 1,274,053 | $ 2,511,516 |
Net income attributable to Sonoco | $ 47,711 | $ 99,186 |
Pro forma basic (usd per share) | $ 0.48 | $ 0.99 |
Pro forma diluted (usd per share) | $ 0.47 | $ 0.98 |
Actual net sales | $ 33,379 | $ 68,219 |
Actual net income | $ 4,503 | $ 184 |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Numerator: | ||||
Net income attributable to Sonoco | $ 89,412 | $ 43,125 | $ 163,467 | $ 96,858 |
Denominator: | ||||
Basic (in shares) | 100,568 | 100,258 | 100,482 | 100,184 |
Dilutive effect of stock-based compensation (in shares) | 472 | 459 | 483 | 665 |
Diluted (in shares) | 101,040 | 100,717 | 100,965 | 100,849 |
Net income attributable to Sonoco per common share: | ||||
Basic (in usd per share) | $ 0.89 | $ 0.43 | $ 1.63 | $ 0.97 |
Diluted (in usd per share) | $ 0.88 | $ 0.43 | $ 1.62 | $ 0.96 |
Shareholders' Equity - Antidilu
Shareholders' Equity - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Equity [Abstract] | ||||
Anti-dilutive stock appreciation rights (in shares) | 1,043 | 532 | 891 | 444 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 18, 2018 | Apr. 18, 2018 | Jul. 01, 2018 | Jul. 02, 2017 | Dec. 31, 2016 | Jul. 01, 2018 | Feb. 10, 2016 |
Class of Stock [Line Items] | |||||||
Number of shares authorized for repurchase | 5,000,000 | ||||||
Number of shares repurchased | 2,030,000 | 0 | |||||
Number of shares available for repurchase | 2,970,000 | 2,970,000 | |||||
Dividend declared date | Apr. 18, 2018 | ||||||
Dividend declared and payable (in usd per share) | $ 0.41 | ||||||
Dividend payable date | Jun. 8, 2018 | ||||||
Dividend payable date of record | May 11, 2018 | ||||||
Tax Withholding Obligations | |||||||
Class of Stock [Line Items] | |||||||
Number of shares repurchased | 87,000 | 111,000 | |||||
Cost of shares repurchased | $ 4,558 | $ 5,884 | |||||
Subsequent event | |||||||
Class of Stock [Line Items] | |||||||
Dividend declared date | Jul. 18, 2018 | ||||||
Dividend declared and payable (in usd per share) | $ 0.41 | ||||||
Dividend payable date | Sep. 10, 2018 | ||||||
Dividend payable date of record | Aug. 10, 2018 |
Restructuring and Asset Impai46
Restructuring and Asset Impairment - Restructuring and Asset Impairment Charges/ (Credits), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Restructuring/Asset impairment: | ||||
Restructuring/Asset impairment charges | $ 3,567 | $ 7,897 | $ 6,630 | $ 12,008 |
Income tax benefit | (1,046) | (2,338) | (1,731) | (3,636) |
Less: Costs attributable to noncontrolling interests, net of tax | (15) | (12) | (20) | (14) |
Restructuring/asset impairment charges attributable to Sonoco, net of tax | 2,506 | 5,547 | 4,879 | 8,358 |
2018 Actions | ||||
Restructuring/Asset impairment: | ||||
Restructuring/Asset impairment charges | 2,708 | 0 | 4,915 | 0 |
2017 Actions | ||||
Restructuring/Asset impairment: | ||||
Restructuring/Asset impairment charges | 1,017 | 3,884 | 1,422 | 6,188 |
2016 and Earlier Actions | ||||
Restructuring/Asset impairment: | ||||
Restructuring/Asset impairment charges | (158) | 3,675 | 293 | 5,482 |
Other asset impairments | ||||
Restructuring/Asset impairment: | ||||
Restructuring/Asset impairment charges | $ 0 | $ 338 | $ 0 | $ 338 |
Restructuring and Asset Impai47
Restructuring and Asset Impairment - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jul. 02, 2017USD ($) | Jul. 01, 2018USD ($)position | Dec. 31, 2017USD ($)facilityposition | |
Restructuring Cost and Reserve [Line Items] | |||
Expected future charges associated with previous restructuring on earnings | $ 2,350 | ||
Number of facilities closed | facility | 5 | ||
Other asset impairments | $ 338 | ||
2018 Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of eliminated positions | position | 55 | ||
Asset impairment/disposal of assets | $ 4,915 | ||
Proceeds from sale of building | 2,019 | ||
Asset write off | 1,747 | ||
2017 Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of eliminated positions | position | 255 | ||
Asset impairment/disposal of assets | 1,422 | ||
Proceeds from sale of building | 1,833 | ||
Asset write off | 460 | ||
2016 and Earlier Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected future charges associated with previous restructuring on earnings | 100 | ||
Restructuring reserve | 1,577 | $ 3,044 | |
Vacated land and building | 2018 Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment/disposal of assets | 272 | ||
Vacated land and building | 2017 Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment/disposal of assets | $ 1,373 | ||
United States | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed | facility | 3 | ||
Belgium | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed | facility | 1 | ||
China | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed | facility | 1 |
Restructuring and Asset Impai48
Restructuring and Asset Impairment - Actions and Related Expenses by Segment and by Type Incurred and Estimated for Given Years (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | $ 3,567 | $ 7,897 | $ 6,630 | $ 12,008 |
2018 Actions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 2,708 | 0 | 4,915 | 0 |
Total Incurred to Date | 4,915 | 4,915 | ||
Estimated Total Cost | 6,415 | 6,415 | ||
2018 Actions | Other Costs | Display and Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 3 | |||
Total Incurred to Date | 3 | 3 | ||
Estimated Total Cost | 3 | 3 | ||
2017 Actions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 1,017 | 3,884 | 1,422 | 6,188 |
Total Incurred to Date | 16,751 | 16,751 | ||
Estimated Total Cost | 17,501 | 17,501 | ||
2017 Actions | Asset Impairment / Disposal of Assets | Protective Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 0 | 777 | 0 | 777 |
Total Incurred to Date | 871 | 871 | ||
Estimated Total Cost | 871 | 871 | ||
2016 and Earlier Actions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | (158) | 3,675 | 293 | 5,482 |
Operating Segments | 2018 Actions | Severance and Termination Benefits | Consumer Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 906 | |||
Total Incurred to Date | 1,694 | 1,694 | ||
Estimated Total Cost | 1,994 | 1,994 | ||
Operating Segments | 2018 Actions | Severance and Termination Benefits | Display and Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 556 | |||
Total Incurred to Date | 731 | 731 | ||
Estimated Total Cost | 731 | 731 | ||
Operating Segments | 2018 Actions | Severance and Termination Benefits | Paper and Industrial Converted Products | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 301 | |||
Total Incurred to Date | 1,292 | 1,292 | ||
Estimated Total Cost | 1,292 | 1,292 | ||
Operating Segments | 2018 Actions | Severance and Termination Benefits | Protective Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 517 | |||
Total Incurred to Date | 776 | 776 | ||
Estimated Total Cost | 776 | 776 | ||
Operating Segments | 2018 Actions | Asset Impairment / Disposal of Assets | Consumer Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 89 | |||
Total Incurred to Date | 75 | 75 | ||
Estimated Total Cost | 75 | 75 | ||
Operating Segments | 2018 Actions | Asset Impairment / Disposal of Assets | Protective Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 29 | |||
Total Incurred to Date | (243) | (243) | ||
Estimated Total Cost | (243) | (243) | ||
Operating Segments | 2018 Actions | Other Costs | Consumer Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | (6) | |||
Total Incurred to Date | 5 | 5 | ||
Estimated Total Cost | 105 | 105 | ||
Operating Segments | 2018 Actions | Other Costs | Paper and Industrial Converted Products | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 293 | |||
Total Incurred to Date | 293 | 293 | ||
Estimated Total Cost | 1,293 | 1,293 | ||
Operating Segments | 2018 Actions | Other Costs | Protective Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 0 | |||
Total Incurred to Date | 46 | 46 | ||
Estimated Total Cost | 146 | 146 | ||
Operating Segments | 2017 Actions | Severance and Termination Benefits | Consumer Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 684 | 349 | 1,056 | 1,316 |
Total Incurred to Date | 5,247 | 5,247 | ||
Estimated Total Cost | 5,247 | 5,247 | ||
Operating Segments | 2017 Actions | Severance and Termination Benefits | Display and Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | (7) | 66 | (15) | 172 |
Total Incurred to Date | 726 | 726 | ||
Estimated Total Cost | 726 | 726 | ||
Operating Segments | 2017 Actions | Severance and Termination Benefits | Paper and Industrial Converted Products | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | (2) | 1,663 | 2 | 2,204 |
Total Incurred to Date | 4,020 | 4,020 | ||
Estimated Total Cost | 4,020 | 4,020 | ||
Operating Segments | 2017 Actions | Severance and Termination Benefits | Protective Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 179 | 899 | 312 | 974 |
Total Incurred to Date | 1,710 | 1,710 | ||
Estimated Total Cost | 1,710 | 1,710 | ||
Operating Segments | 2017 Actions | Asset Impairment / Disposal of Assets | Consumer Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 0 | 0 | 0 | 0 |
Total Incurred to Date | 351 | 351 | ||
Estimated Total Cost | 351 | 351 | ||
Operating Segments | 2017 Actions | Asset Impairment / Disposal of Assets | Display and Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 27 | 0 | 193 | 0 |
Total Incurred to Date | 193 | 193 | ||
Estimated Total Cost | 193 | 193 | ||
Operating Segments | 2017 Actions | Asset Impairment / Disposal of Assets | Paper and Industrial Converted Products | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | (599) | 0 | (1,264) | 0 |
Total Incurred to Date | (1,359) | (1,359) | ||
Estimated Total Cost | (1,359) | (1,359) | ||
Operating Segments | 2017 Actions | Other Costs | Consumer Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 445 | 92 | 552 | 251 |
Total Incurred to Date | 1,431 | 1,431 | ||
Estimated Total Cost | 1,931 | 1,931 | ||
Operating Segments | 2017 Actions | Other Costs | Display and Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 122 | 0 | (226) | 0 |
Total Incurred to Date | 563 | 563 | ||
Estimated Total Cost | 813 | 813 | ||
Operating Segments | 2017 Actions | Other Costs | Paper and Industrial Converted Products | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 91 | 38 | 641 | 38 |
Total Incurred to Date | 1,642 | 1,642 | ||
Estimated Total Cost | 1,642 | 1,642 | ||
Operating Segments | 2017 Actions | Other Costs | Protective Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 77 | 0 | 171 | 0 |
Total Incurred to Date | 913 | 913 | ||
Estimated Total Cost | 913 | 913 | ||
Operating Segments | 2016 and Earlier Actions | Consumer Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | (132) | 2,619 | 333 | 2,593 |
Operating Segments | 2016 and Earlier Actions | Display and Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | (24) | 156 | (23) | 551 |
Operating Segments | 2016 and Earlier Actions | Paper and Industrial Converted Products | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | (20) | 875 | (53) | 2,228 |
Operating Segments | 2016 and Earlier Actions | Protective Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 18 | 25 | 36 | 103 |
Corporate | 2018 Actions | Severance and Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 20 | |||
Total Incurred to Date | 243 | 243 | ||
Estimated Total Cost | 243 | 243 | ||
Corporate | 2017 Actions | Severance and Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 0 | 0 | 0 | 456 |
Total Incurred to Date | 452 | 452 | ||
Estimated Total Cost | 452 | 452 | ||
Corporate | 2017 Actions | Other Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | 0 | 0 | 0 | 0 |
Total Incurred to Date | (9) | (9) | ||
Estimated Total Cost | (9) | (9) | ||
Corporate | 2016 and Earlier Actions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/asset impairment charges | $ 0 | $ 0 | $ 0 | $ 7 |
Restructuring and Asset Impai49
Restructuring and Asset Impairment - Restructuring Accrual Activity for Given Years (Details) $ in Thousands | 6 Months Ended |
Jul. 01, 2018USD ($) | |
2018 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | $ 0 |
Current year charges | 4,915 |
Cash receipts/(payments) | (299) |
Asset write downs/disposals | (1,881) |
Foreign currency translation | (22) |
Liability, ending balance | 2,713 |
2017 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | 4,102 |
Current year charges | 1,422 |
Cash receipts/(payments) | (2,645) |
Asset write downs/disposals | (770) |
Foreign currency translation | 82 |
Liability, ending balance | 2,191 |
Severance and Termination Benefits | 2018 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | 0 |
Current year charges | 4,736 |
Cash receipts/(payments) | (2,039) |
Asset write downs/disposals | 0 |
Foreign currency translation | (22) |
Liability, ending balance | 2,675 |
Severance and Termination Benefits | 2017 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | 3,889 |
Current year charges | 1,355 |
Cash receipts/(payments) | (3,052) |
Asset write downs/disposals | 0 |
Foreign currency translation | (12) |
Liability, ending balance | 2,180 |
Asset Impairment / Disposal of Assets | 2018 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | 0 |
Current year charges | (168) |
Cash receipts/(payments) | 2,049 |
Asset write downs/disposals | (1,881) |
Foreign currency translation | 0 |
Liability, ending balance | 0 |
Asset Impairment / Disposal of Assets | 2017 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | 0 |
Current year charges | (1,071) |
Cash receipts/(payments) | 1,841 |
Asset write downs/disposals | (770) |
Foreign currency translation | 0 |
Liability, ending balance | 0 |
Other Costs | 2018 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | 0 |
Current year charges | 347 |
Cash receipts/(payments) | (309) |
Asset write downs/disposals | 0 |
Foreign currency translation | 0 |
Liability, ending balance | 38 |
Other Costs | 2017 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | 213 |
Current year charges | 1,138 |
Cash receipts/(payments) | (1,434) |
Asset write downs/disposals | 0 |
Foreign currency translation | 94 |
Liability, ending balance | $ 11 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Dec. 31, 2017 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | [1] | $ 1,730,060 | ||||
Other comprehensive income | $ (57,477) | $ 65,719 | (27,630) | $ 104,905 | ||
Ending Balance | 1,790,265 | 1,790,265 | ||||
Gains and Losses on Cash Flow Hedges | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | (641) | 1,939 | ||||
Other comprehensive income/(loss) before reclassifications, net of tax | (1,139) | (2,220) | ||||
Other comprehensive income | (1,265) | (3,467) | ||||
Amounts reclassified from retained earnings to accumulated other comprehensive loss | $ (176) | |||||
Ending Balance | (2,082) | (1,528) | (2,082) | (1,528) | ||
Defined Benefit Pension Items | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | (467,136) | (453,821) | ||||
Other comprehensive income/(loss) before reclassifications, net of tax | 1,068 | 18,117 | ||||
Other comprehensive income | 15,239 | 48,010 | ||||
Ending Balance | (451,897) | (405,811) | (451,897) | (405,811) | ||
Foreign Currency Items | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | (198,495) | (286,498) | ||||
Other comprehensive income/(loss) before reclassifications, net of tax | (39,927) | 59,841 | ||||
Other comprehensive income | (39,927) | 59,841 | ||||
Ending Balance | (238,422) | (226,657) | (238,422) | (226,657) | ||
Accumulated Other Comprehensive Loss | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | (666,272) | (738,380) | ||||
Other comprehensive income/(loss) before reclassifications, net of tax | (39,998) | 75,738 | ||||
Other comprehensive income | (25,953) | 104,384 | ||||
Amounts reclassified from retained earnings to accumulated other comprehensive loss | $ (176) | |||||
Ending Balance | $ (692,401) | $ (633,996) | (692,401) | (633,996) | ||
Fixed Assets | Gains and Losses on Cash Flow Hedges | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 56 | 10 | ||||
Fixed Assets | Accumulated Other Comprehensive Loss | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 56 | 10 | ||||
Net Income | Gains and Losses on Cash Flow Hedges | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | (182) | (1,257) | ||||
Net Income | Defined Benefit Pension Items | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 14,171 | 29,893 | ||||
Net Income | Accumulated Other Comprehensive Loss | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | $ 13,989 | $ 28,636 | ||||
[1] | 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. |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Loss - Additional Information (Details) $ in Thousands | 6 Months Ended |
Jul. 02, 2017USD ($) | |
Subsidiaries | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Other comprehensive income/(loss) before reclassifications, net of tax | $ 5,071 |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Loss - Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | $ 1,366,373 | $ 1,240,674 | $ 2,670,560 | $ 2,412,998 |
Cost of sales | (1,089,913) | (1,002,289) | (2,143,498) | (1,951,634) |
Selling, general and administrative expenses | 141,031 | 125,308 | 278,472 | 250,517 |
Income before income taxes | 116,222 | 57,978 | 213,256 | 135,893 |
Provision for income taxes | (30,293) | (17,167) | (53,649) | (42,706) |
Net income | 89,645 | 43,656 | 164,570 | 97,986 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | (7,208) | (22,626) | (13,989) | (28,636) |
Reclassification out of Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | (240) | 2,243 | 570 | 3,283 |
Cost of sales | 242 | (854) | (343) | (1,331) |
Income before income taxes | 2 | 1,389 | 227 | 1,952 |
Provision for income taxes | (1) | (497) | (45) | (695) |
Net income | 1 | 892 | 182 | 1,257 |
Reclassification out of Accumulated Other Comprehensive Income | Effect of settlement loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling, general and administrative expenses | (645) | (31,074) | (645) | (31,074) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of defined benefit pension items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Non-operating pension costs | (8,983) | (9,668) | (18,284) | (19,785) |
Reclassification out of Accumulated Other Comprehensive Income | Defined benefit pension items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | (9,628) | (40,742) | (18,929) | (50,859) |
Provision for income taxes | 2,419 | 17,224 | 4,758 | 20,966 |
Net income | (7,209) | (23,518) | (14,171) | (29,893) |
Reclassification out of Accumulated Other Comprehensive Income | Foreign exchange contracts | Gains and Losses on Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | (240) | 2,243 | 570 | 3,283 |
Cost of sales | 174 | (1,317) | (353) | (2,042) |
Reclassification out of Accumulated Other Comprehensive Income | Commodity contracts | Gains and Losses on Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | $ 68 | $ 463 | $ 10 | $ 711 |
Accumulated Other Comprehensi53
Accumulated Other Comprehensive Loss - Before and After Tax Amounts for Comprehensive Income (Loss) Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income/(loss) before tax | $ (53,314) | $ 88,776 | $ (21,310) | $ 124,333 |
Other comprehensive income/(loss), tax | (2,056) | (22,898) | (4,643) | (19,949) |
Other comprehensive (loss)/income | (55,370) | 65,878 | (25,953) | 104,384 |
Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income/(loss) before tax | (62,480) | 29,685 | (39,927) | 59,841 |
Other comprehensive income/(loss), tax | 0 | 0 | 0 | 0 |
Other comprehensive (loss)/income | (62,480) | 29,685 | (39,927) | 59,841 |
Defined benefit pension items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income/(loss) before reclassifications before tax | 2,635 | 19,168 | 1,490 | 19,021 |
Other comprehensive income/(loss) before reclassifications, tax | (422) | (5,975) | (422) | (904) |
Other comprehensive income/(loss) before reclassifications, net of tax | 2,213 | 13,193 | 1,068 | 18,117 |
Other comprehensive income/(loss) before tax | 12,263 | 59,910 | 20,419 | 69,880 |
Other comprehensive income/(loss), tax | (2,841) | (23,199) | (5,180) | (21,870) |
Other comprehensive (loss)/income | 9,422 | 36,711 | 15,239 | 48,010 |
Gains and Losses on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income/(loss) before reclassifications before tax | (3,106) | 602 | (1,631) | (3,446) |
Other comprehensive income/(loss) before reclassifications, tax | 784 | (196) | 492 | 1,226 |
Other comprehensive income/(loss) before reclassifications, net of tax | (2,322) | 406 | (1,139) | (2,220) |
Other comprehensive income/(loss) before tax | (3,097) | (819) | (1,802) | (5,388) |
Other comprehensive income/(loss), tax | 785 | 301 | 537 | 1,921 |
Other comprehensive (loss)/income | (2,312) | (518) | (1,265) | (3,467) |
Fixed Assets | Gains and Losses on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 11 | (32) | 56 | 10 |
Amounts reclassified from accumulated other comprehensive income/(loss), tax | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 11 | (32) | 56 | 10 |
Net Income | Defined benefit pension items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 9,628 | 40,742 | 18,929 | 50,859 |
Amounts reclassified from accumulated other comprehensive income/(loss), tax | (2,419) | (17,224) | (4,758) | (20,966) |
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 7,209 | 23,518 | 14,171 | 29,893 |
Net Income | Gains and Losses on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | (2) | (1,389) | (227) | (1,952) |
Amounts reclassified from accumulated other comprehensive income/(loss), tax | 1 | 497 | 45 | 695 |
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | $ (1) | $ (892) | $ (182) | $ (1,257) |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets - Changes in Goodwill by Segment (Details) $ in Thousands | 6 Months Ended | |
Jul. 01, 2018USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,241,875 | [1] |
2018 Acquisitions | 48,387 | |
Foreign currency translation | (13,944) | |
Other | 11,521 | |
Goodwill, ending balance | 1,287,839 | |
Consumer Packaging | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 572,716 | |
2018 Acquisitions | 48,387 | |
Foreign currency translation | (8,715) | |
Other | 11,521 | |
Goodwill, ending balance | 623,909 | |
Display and Packaging | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 203,414 | |
2018 Acquisitions | 0 | |
Foreign currency translation | 0 | |
Other | 0 | |
Goodwill, ending balance | 203,414 | |
Paper and Industrial Converted Products | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 233,778 | |
2018 Acquisitions | 0 | |
Foreign currency translation | (4,896) | |
Other | 0 | |
Goodwill, ending balance | 228,882 | |
Protective Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 231,967 | |
2018 Acquisitions | 0 | |
Foreign currency translation | (333) | |
Other | 0 | |
Goodwill, ending balance | $ 231,634 | |
[1] | 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. |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | Apr. 18, 2018 | Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Oct. 01, 2017 | Apr. 12, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||||||||
Goodwill | $ 1,287,839,000 | $ 1,287,839,000 | $ 1,241,875,000 | [1] | |||||
Goodwill, impairment loss | $ 0 | ||||||||
Aggregate amortization expense | 12,401,000 | $ 9,378,000 | 22,603,000 | $ 16,589,000 | |||||
Amortization expense on other intangible assets in 2018 | 46,100,000 | 46,100,000 | |||||||
Amortization expense on other intangible assets in 2019 | 45,400,000 | 45,400,000 | |||||||
Amortization expense on other intangible assets in 2020 | 42,300,000 | 42,300,000 | |||||||
Amortization expense on other intangible assets in 2021 | 41,400,000 | 41,400,000 | |||||||
Amortization expense on other intangible assets in 2022 | 39,500,000 | $ 39,500,000 | |||||||
Minimum | |||||||||
Goodwill [Line Items] | |||||||||
Useful lives of other intangible assets | 3 years | ||||||||
Maximum | |||||||||
Goodwill [Line Items] | |||||||||
Useful lives of other intangible assets | 40 years | ||||||||
Paper and Industrial Converted Products - Europe Reporting Unit | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill | 91,639,000 | $ 91,639,000 | |||||||
Display and Packaging | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill | 203,414,000 | 203,414,000 | $ 203,414,000 | ||||||
Display and Packaging | Display and Packaging Reporting Unit | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill | 203,414,000 | 203,414,000 | |||||||
Highland Packaging Solution | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill | $ 48,387,000 | ||||||||
Intangible assets resulting from acquisition | $ 45,610,000 | ||||||||
Weighted average useful life | 13 years | ||||||||
Packaging Holdings, Inc. | |||||||||
Goodwill [Line Items] | |||||||||
Increase to goodwill | 7,180,000 | ||||||||
Clear Lam Packaging, Inc. | |||||||||
Goodwill [Line Items] | |||||||||
Increase to goodwill | 4,341,000 | $ 4,341,000 | |||||||
Decrease to other intangible assets | $ 1,300,000 | ||||||||
[1] | 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. |
Goodwill and Other Intangible56
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 | |
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | $ 607,179 | $ 567,556 | |
Accumulated Amortization | (256,764) | (236,261) | |
Other Intangible Assets, net | 350,415 | 331,295 | [1] |
Patents | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 21,969 | 21,957 | |
Accumulated Amortization | (8,231) | (7,187) | |
Customer lists | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 535,038 | 497,634 | |
Accumulated Amortization | (227,296) | (210,212) | |
Trade names | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 26,987 | 25,148 | |
Accumulated Amortization | (5,777) | (4,427) | |
Proprietary technology | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 20,763 | 20,779 | |
Accumulated Amortization | (14,084) | (13,192) | |
Land use rights | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 289 | 298 | |
Accumulated Amortization | (49) | (47) | |
Other | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 2,133 | 1,740 | |
Accumulated Amortization | $ (1,327) | $ (1,196) | |
[1] | 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. |
Debt - Additional Information (
Debt - Additional Information (Details) - Term Loan Facility - Bank of America | Apr. 12, 2018USD ($)extension_option | Jul. 01, 2018USD ($) |
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 100,000,000 | |
Debt term | 364 days | |
Additional debt term | 364 days | |
Number of extension options | extension_option | 1 | |
Repayments of borrowings from term loan | $ 50,000,000 | |
LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis points | 1.10% |
Financial Instruments and Der58
Financial Instruments and Derivatives - Carrying Amount and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Long-term debt, net of current portion, carrying amount | $ 1,274,325 | $ 1,288,002 | [1] |
Long-term debt, net of current portion, fair value | $ 1,369,785 | $ 1,426,862 | |
[1] | 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. |
Financial Instruments and Der59
Financial Instruments and Derivatives - Additional Information (Details) $ in Thousands, MMBTU in Millions | 6 Months Ended | |||
Jul. 01, 2018USD ($)MMBTUT | Jul. 02, 2017USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
Derivative [Line Items] | ||||
Fair value of commodity cash flow hedges, gain (loss) | $ (593) | $ (1,713) | ||
Commodity gain (loss) expected to be reclassified to the income statement during the next 12 months | (233) | |||
Fair value of foreign currency cash flow hedges, gain (loss) | (1,826) | 950 | ||
Foreign currency gain (loss) expected to be reclassified to the income statement during the next 12 months | (1,564) | |||
Total fair value of other derivatives not designated as hedging instruments | (284) | (581) | ||
Accumulated Other Comprehensive Loss | ||||
Derivative [Line Items] | ||||
Cumulative effect, increase (decrease) | (176) | |||
Accumulated Other Comprehensive Loss | Fixed Assets | ||||
Derivative [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive loss | $ 56 | $ 10 | ||
Natural Gas Swaps | ||||
Derivative [Line Items] | ||||
Approximate amount of commodity covered by swap contracts outstanding (in MMBTUs) | MMBTU | 5 | |||
Anticipated usage percentage covered by a swap contract for the current fiscal year | 74.00% | |||
Anticipated usage percentage covered by a swap contract for the second succeeding fiscal year (less than) | 33.00% | |||
Aluminum Swaps | ||||
Derivative [Line Items] | ||||
Anticipated usage percentage covered by a swap contract for the current fiscal year | 51.00% | |||
Approximate amount of commodity covered by swap contracts outstanding (in tons) | T | 1,905 | |||
Foreign Exchange Forward For Construction In Progress | ||||
Derivative [Line Items] | ||||
Net position of contracts | $ (262) | $ 330 | ||
Accounting Standards Update 2017-12 | New Accounting Pronouncement, Early Adoption, Effect | Retained Earnings | ||||
Derivative [Line Items] | ||||
Cumulative effect, increase (decrease) | $ 176 | |||
Accounting Standards Update 2017-12 | New Accounting Pronouncement, Early Adoption, Effect | Accumulated Other Comprehensive Loss | ||||
Derivative [Line Items] | ||||
Cumulative effect, increase (decrease) | $ (176) |
Financial Instruments and Der60
Financial Instruments and Derivatives - Net Positions of Foreign Contracts (Details) - Jul. 01, 2018 - Cash Flow Hedging ₽ in Thousands, ₺ in Thousands, € in Thousands, £ in Thousands, zł in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | RUB (₽) | PLN (zł) | AUD ($) | GBP (£) | COP ($) | CAD ($) | TRY (₺) | MXN ($) | EUR (€) | NZD ($) |
purchase | ||||||||||
Derivative [Line Items] | ||||||||||
Net position, purchase (sell) | ₽ 31,506 | zł 217,049 | £ 5,535 | $ 3,821,059 | $ 26,485 | ₺ 5,194 | $ 351,178 | |||
sell | ||||||||||
Derivative [Line Items] | ||||||||||
Net position, purchase (sell) | $ 709 | € 51,137 | $ 262 |
Financial Instruments and Der61
Financial Instruments and Derivatives - Net Positions of Other Derivatives Contract (Details) - Jul. 01, 2018 - Derivatives Not Designated as Hedging Instruments $ in Thousands, $ in Thousands, $ in Thousands | COP ($) | CAD ($) | MXN ($) |
purchase | |||
Derivative [Line Items] | |||
Net position | $ 7,353,411 | $ 151,893 | |
sell | |||
Derivative [Line Items] | |||
Net position | $ 52,228 |
Financial Instruments and Der62
Financial Instruments and Derivatives - Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 279 | $ 149 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (658) | (1,417) |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (214) | (445) |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 154 | 2,232 |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (1,980) | (1,282) |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 2 | 90 |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ (286) | $ (671) |
Financial Instruments and Der63
Financial Instruments and Derivatives - Effect of Derivative Instruments on Financial Performance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | $ (4,407) | $ 509 | $ (2,761) | $ (2,183) |
Foreign exchange contracts | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | (240) | 2,243 | 570 | 3,283 |
Foreign exchange contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | 174 | (1,317) | (353) | (2,042) |
Foreign exchange contracts | Cost of sales | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized | 0 | 0 | 0 | 0 |
Foreign exchange contracts | Selling, general and administrative | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized | 1,270 | 1,665 | 2,024 | 1,098 |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | 1,301 | 93 | 1,130 | (1,263) |
Commodity contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | $ 68 | $ 463 | $ 10 | $ 711 |
Financial Instruments and Der64
Financial Instruments and Derivatives - Reclassification of Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | $ 1,366,373 | $ 1,240,674 | $ 2,670,560 | $ 2,412,998 |
Cost of sales | (1,089,913) | (1,002,289) | (2,143,498) | (1,951,634) |
Gains and Losses on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | (240) | 2,243 | 570 | 3,283 |
Cost of sales | 242 | (854) | (343) | (1,331) |
Foreign exchange contracts | Gains and Losses on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | (240) | 2,243 | 570 | 3,283 |
Cost of sales | 174 | (1,317) | (353) | (2,042) |
Commodity contracts | Gains and Losses on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Cost of sales | $ 68 | $ 463 | $ 10 | $ 711 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at NAV | $ 0 | $ 0 |
Deferred compensation plan assets | 273 | 268 |
Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (593) | (1,713) |
Assets measured at NAV | 0 | 0 |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (1,826) | 950 |
Assets measured at NAV | 0 | 0 |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (284) | (581) |
Assets measured at NAV | 0 | 0 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 273 | 268 |
Level 1 | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 1 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 1 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Level 2 | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (593) | (1,713) |
Level 2 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (1,826) | 950 |
Level 2 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (284) | (581) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Level 3 | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 3 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 3 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ 0 | $ 0 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions | $ 9,995,000 | $ 34,445,000 | ||
Expected contributions for remainder of fiscal year | $ 14,500,000 | 14,500,000 | ||
Settlement losses recognized | 645,000 | 31,074,000 | ||
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement losses recognized | 645,000 | $ 31,074,000 | 645,000 | 31,074,000 |
Pension Plan | Sonoco Retirement Contribution | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions | 14,151,000 | 14,066,000 | ||
Expected contributions for remainder of fiscal year | 0 | 0 | ||
Recognized expense related to the plan | $ 3,855,000 | $ 3,820,000 | $ 7,887,000 | $ 7,691,000 |
Pension Plan | United States | Sonoco Retirement Contribution | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer matching contribution, percent of employees' gross pay | 4.00% | |||
Employer matching contribution, percent of employees' gross pay in excess of social security | 4.00% |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Effect of settlement loss | $ 645 | $ 31,074 | ||
Retirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
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 (income) | 5,520 | 39,557 | 10,630 | 48,531 |
Retiree Health and Life Insurance Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
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 cost | (123) | (123) | (249) | (250) |
Amortization of net actuarial loss | (298) | (225) | (540) | (380) |
Net periodic benefit cost (income) | $ (459) | $ (570) | $ (1,109) | $ (1,062) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Thousands | Nov. 20, 2017USD ($) | Mar. 31, 2017USD ($) | Jul. 01, 2018USD ($) | Jul. 02, 2017 | Jul. 01, 2018USD ($) | Jul. 02, 2017 | Nov. 14, 2017notice_of_proposed_adjustment | Oct. 05, 2017notice_of_proposed_adjustment |
Income Tax Contingency [Line Items] | ||||||||
Effective tax rate | 26.10% | 29.60% | 25.20% | 31.40% | ||||
Increase of uncertain tax benefits | $ 1,400 | |||||||
Reserves for uncertain tax benefits, decrease | $ 800 | $ 800 | ||||||
Number of draft notice of proposed adjustments, revised | notice_of_proposed_adjustment | 2 | |||||||
Number of notice of proposed adjustments | notice_of_proposed_adjustment | 2 | |||||||
Internal Revenue Service (IRS) | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Penalties expense | $ 18,000 | |||||||
Tax examination, possible loss | $ 89,000 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2018 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Payment terms | 120 days | |
Accounting Standards Update 2014-09 | Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect, increase (decrease) | $ 1,721 |
Revenue Recognition - Receivabl
Revenue Recognition - Receivables, Contract Assets and Liabilities from Contracts with Customer (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | |||
Contract Assets | $ 48,765 | $ 45,877 | $ 45,877 |
Contract Liabilities | $ (5,737) | $ (5,215) | $ (5,215) |
Revenue Recognition - Significa
Revenue Recognition - Significant Changes in the Contract Assets and Liabilities Balances (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Jul. 01, 2018 |
Contract Asset | ||
Beginning Balance | $ 45,877 | $ 45,877 |
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 | 0 | |
Impairment of contract asset | 0 | |
Acquired as part of a business combinations | 0 | |
Ending Balance | 45,877 | 48,765 |
Contract Liability | ||
Beginning Balance | (5,215) | (5,215) |
Revenue recognized that was included in the contract liabilities balance at the beginning of the period | (522) | |
Increase as a result of cumulative catch-up arising from changes in the estimate of completion, excluding amounts transferred to receivables during the period | 0 | |
Ending Balance | (5,215) | (5,737) |
Scenario, Previously Reported | ||
Contract Asset | ||
Beginning Balance | 0 | 0 |
Contract Liability | ||
Beginning Balance | 0 | $ 0 |
Scenario, Adjustment | ||
Contract Asset | ||
Increases due to rights to consideration for customer specific goods produced, but not billed during the period | 0 | |
Transferred to receivables from contract assets recognized at the beginning of the period | 0 | |
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 | |
Impairment of contract asset | 0 | |
Acquired as part of a business combinations | 0 | |
Contract Liability | ||
Increase as a result of cumulative catch-up arising from changes in the estimate of completion, excluding amounts transferred to receivables during the period | $ (5,215) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,366,373 | $ 1,240,674 | $ 2,670,560 | $ 2,412,998 |
Consumer Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 616,062 | 1,185,914 | ||
Consumer Packaging | Products transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 386,850 | 732,416 | ||
Consumer Packaging | Products transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 229,212 | 453,498 | ||
Consumer Packaging | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 446,573 | 844,559 | ||
Consumer Packaging | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 101,954 | 209,017 | ||
Consumer Packaging | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 30,595 | 58,301 | ||
Consumer Packaging | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 36,940 | 74,037 | ||
Display and Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 143,260 | 285,918 | ||
Display and Packaging | Products transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 99,233 | 200,876 | ||
Display and Packaging | Products transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44,027 | 85,042 | ||
Display and Packaging | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 69,180 | 143,064 | ||
Display and Packaging | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 72,377 | 138,322 | ||
Display and Packaging | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Display and Packaging | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,703 | 4,532 | ||
Paper and Industrial Converted Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 474,137 | 934,790 | ||
Paper and Industrial Converted Products | Products transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 452,576 | 893,667 | ||
Paper and Industrial Converted Products | Products transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 21,561 | 41,123 | ||
Paper and Industrial Converted Products | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 279,701 | 545,463 | ||
Paper and Industrial Converted Products | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 90,398 | 183,253 | ||
Paper and Industrial Converted Products | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 33,762 | 66,635 | ||
Paper and Industrial Converted Products | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 70,276 | 139,439 | ||
Protective Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 132,914 | 263,938 | ||
Protective Solutions | Products transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 109,636 | 221,435 | ||
Protective Solutions | Products transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 23,278 | 42,503 | ||
Protective Solutions | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 111,748 | 222,248 | ||
Protective Solutions | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,816 | 13,605 | ||
Protective Solutions | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Protective Solutions | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 14,350 | $ 28,085 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 6 Months Ended |
Jul. 01, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Reporting - Segment Fin
Segment Reporting - Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,366,373 | $ 1,240,674 | $ 2,670,560 | $ 2,412,998 |
Operating profit | 131,862 | 105,180 | 241,960 | 198,839 |
Restructuring/Asset impairment charges | (3,567) | (7,897) | (6,630) | (12,008) |
Consumer Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 616,062 | 1,185,914 | ||
Display and Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 143,260 | 285,918 | ||
Paper and Industrial Converted Products | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 474,137 | 934,790 | ||
Protective Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 132,914 | 263,938 | ||
Operating Segments | Consumer Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 616,062 | 521,262 | 1,185,914 | 1,003,443 |
Operating profit | 63,670 | 60,376 | 124,758 | 119,836 |
Operating Segments | Display and Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 143,260 | 115,612 | 285,918 | 230,247 |
Operating profit | (570) | 1,479 | 1,162 | 4,701 |
Operating Segments | Paper and Industrial Converted Products | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 474,137 | 469,197 | 934,790 | 911,699 |
Operating profit | 61,542 | 45,437 | 101,323 | 72,287 |
Operating Segments | Protective Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 132,914 | 134,603 | 263,938 | 267,609 |
Operating profit | 13,626 | 11,016 | 24,306 | 21,947 |
Intersegment Sales | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 35,461 | 39,376 | 71,854 | 70,121 |
Intersegment Sales | Consumer Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,122 | 1,353 | 1,861 | 2,576 |
Intersegment Sales | Display and Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 624 | 824 | 1,162 | 1,574 |
Intersegment Sales | Paper and Industrial Converted Products | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 33,433 | 36,680 | 67,976 | 65,053 |
Intersegment Sales | Protective Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 282 | 519 | 855 | 918 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Other, net | $ (2,839) | $ (5,231) | $ (2,959) | $ (7,924) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 72 Months Ended | 80 Months Ended | |
Dec. 31, 2017 | Jul. 01, 2018 | Nov. 30, 2011 | |
Site Contingency [Line Items] | |||
Environmental accrual | $ 20,306 | $ 19,639 | |
Spartanburg, South Carolina Site | Tegrant Holding Corporation | |||
Site Contingency [Line Items] | |||
Environmental accrual | 16,504 | 16,301 | $ 17,400 |
Payment towards remediation of sites | 1,116 | ||
Increase of reserves | 17 | ||
Multiple Sites | |||
Site Contingency [Line Items] | |||
Environmental accrual | $ 3,802 | $ 3,338 |