Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 19, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SON | |
Entity Registrant Name | SONOCO PRODUCTS COMPANY | |
Entity Central Index Key | 0000091767 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 100,046,815 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Current Assets | |||
Cash and cash equivalents | $ 124,328 | $ 120,389 | [1],[2] |
Trade accounts receivable, net of allowances | 773,943 | 737,420 | [1],[2] |
Other receivables | 96,294 | 111,915 | [1],[2] |
Inventories, net: | |||
Finished and in process | 187,422 | 174,115 | [1],[2] |
Materials and supplies | 328,243 | 319,649 | [1],[2] |
Prepaid expenses | 58,261 | 55,784 | [1],[2] |
Total Current Assets | 1,568,491 | 1,519,272 | [1],[2] |
Property, Plant and Equipment, Net | 1,224,143 | 1,233,821 | [1],[2] |
Goodwill | 1,307,166 | 1,309,167 | [1] |
Other Intangible Assets, Net | 340,844 | 352,037 | [1],[2] |
Deferred Income Taxes | 47,872 | 47,297 | [1],[2] |
Right of Use Asset-Operating Leases | 308,166 | ||
Other Assets | 144,822 | 121,871 | [1],[2] |
Total Assets | 4,941,504 | 4,583,465 | [1],[2] |
Current Liabilities | |||
Payable to suppliers | 571,370 | 556,011 | [1],[2] |
Accrued expenses and other | 343,599 | 322,958 | [1],[2] |
Notes payable and current portion of long-term debt | 221,199 | 195,445 | [1],[2] |
Accrued taxes | 20,060 | 8,516 | [1],[2] |
Total Current Liabilities | 1,156,228 | 1,082,930 | [1],[2] |
Long-term Debt, Net of Current Portion | 1,189,415 | 1,189,717 | [1],[2] |
Noncurrent Operating Lease Liabilities | 262,663 | ||
Pension and Other Postretirement Benefits | 369,910 | 374,419 | [1],[2] |
Deferred Income Taxes | 63,806 | 64,273 | [1],[2] |
Other Liabilities | 98,343 | 99,848 | [1],[2] |
Common stock, no par value | |||
Authorized 300,000 shares 100,036 and 99,829 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 7,175 | 7,175 | [1],[2] |
Capital in excess of stated value | 302,273 | 304,709 | [1],[2] |
Accumulated other comprehensive loss | (734,745) | (740,913) | [1],[2] |
Retained earnings | 2,213,473 | 2,188,115 | [1],[2] |
Total Sonoco Shareholders’ Equity | 1,788,176 | 1,759,086 | [1],[2] |
Noncontrolling Interests | 12,963 | 13,192 | [1],[2] |
Total Equity | 1,801,139 | 1,772,278 | [2] |
Total Liabilities and Equity | $ 4,941,504 | $ 4,583,465 | [1],[2] |
[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. | ||
[2] | 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 BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 100,036,000 | 99,829,000 |
Common stock, shares outstanding (in shares) | 100,036,000 | 99,829,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 1,351,705 | $ 1,304,187 |
Cost of sales | 1,081,584 | 1,053,585 |
Gross profit | 270,121 | 250,602 |
Selling, general and administrative expenses | 142,561 | 137,441 |
Restructuring/Asset impairment charges | 10,672 | 3,063 |
Operating profit | 116,888 | 110,098 |
Non-operating pension costs/(income) | 6,041 | (291) |
Interest expense | 16,032 | 14,795 |
Interest income | 647 | 1,440 |
Income before income taxes | 95,462 | 97,034 |
Provision for income taxes | 22,624 | 23,356 |
Income before equity in earnings of affiliates | 72,838 | 73,678 |
Equity in earnings of affiliates, net of tax | 930 | 1,247 |
Net income | 73,768 | 74,925 |
Net income attributable to noncontrolling interests | (105) | (870) |
Net income attributable to Sonoco | $ 73,663 | $ 74,055 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 100,640 | 100,396 |
Diluted (in shares) | 101,072 | 100,896 |
Net income attributable to Sonoco: | ||
Basic (in usd per share) | $ 0.73 | $ 0.74 |
Diluted (in usd per share) | $ 0.73 | $ 0.73 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 73,768 | $ 74,925 |
Other comprehensive income/(loss): | ||
Foreign currency translation adjustments | (2,972) | 22,982 |
Changes in defined benefit plans, net of tax | 7,156 | 5,817 |
Changes in derivative financial instruments, net of tax | 1,864 | 1,047 |
Other comprehensive income | 6,048 | 29,846 |
Comprehensive income | 79,816 | 104,771 |
Net income attributable to noncontrolling interests | (105) | (870) |
Other comprehensive income attributable to noncontrolling interests | (120) | (429) |
Comprehensive income attributable to Sonoco | $ 79,591 | $ 103,472 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Cash Flows from Operating Activities: | ||
Net income | $ 73,768 | $ 74,925 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Asset impairment | 1,400 | 162 |
Depreciation, depletion and amortization | 58,614 | 58,068 |
Share-based compensation expense | 4,560 | 3,048 |
Equity in earnings of affiliates | (930) | (1,247) |
Cash dividends from affiliated companies | 525 | 900 |
Net loss/(gain) on disposition of assets | 2,160 | (227) |
Pension and postretirement plan expense | 7,056 | 8,492 |
Pension and postretirement plan contributions | (17,353) | (18,724) |
Net decrease in deferred taxes | (1,092) | (1,669) |
Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: | ||
Trade accounts receivable | (40,036) | (19,346) |
Inventories | (20,631) | (17,814) |
Payable to suppliers | 14,763 | 10,267 |
Prepaid expenses | (2,637) | (4,202) |
Accrued expenses | (16,865) | (229) |
Income taxes payable and other income tax items | 11,400 | 17,183 |
Other assets and liabilities | 17,617 | 10,178 |
Net cash provided by operating activities | 92,319 | 119,765 |
Cash Flows from Investing Activities: | ||
Purchase of property, plant and equipment | (42,157) | (41,360) |
Cost of acquisitions, net of cash acquired | (455) | 0 |
Proceeds from the sale of assets | 493 | 5,352 |
Investment in affiliates and other, net | 1,150 | 148 |
Net cash used in investing activities | (40,969) | (35,860) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of debt | 15,566 | 21,488 |
Principal repayment of debt | (34,651) | (19,662) |
Net change in commercial paper | 31,000 | 10,000 |
Net decrease in outstanding checks | (10,993) | (5,506) |
Cash dividends | (41,136) | (38,829) |
Dividends paid to noncontrolling interests | (214) | 0 |
Shares acquired | (7,395) | (4,088) |
Net cash used in financing activities | (47,823) | (36,597) |
Effects of Exchange Rate Changes on Cash | 412 | 3,030 |
Net Increase in Cash and Cash Equivalents | 3,939 | 50,338 |
Cash and cash equivalents at beginning of period | 120,389 | 254,912 |
Cash and cash equivalents at end of period | $ 124,328 | $ 305,250 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY (unaudited) - USD ($) $ in Thousands | Total | Common Shares | Capital in Excess of Stated Value | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | |
Beginning Balance at Dec. 31, 2017 | $ 1,730,060 | $ 7,175 | $ 330,157 | $ (666,272) | $ 2,036,006 | $ 22,994 | |
Beginning balance (shares) at Dec. 31, 2017 | 99,414,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 74,925 | 74,055 | 870 | ||||
Other comprehensive income/(loss): | |||||||
Translation gain (loss) | 22,982 | 22,553 | 429 | ||||
Defined benefit plan adjustment, net of tax | 5,817 | 5,817 | |||||
Derivative financial instruments, net of tax | 1,047 | 1,047 | |||||
Other comprehensive income/(loss) | 29,846 | 29,417 | 429 | ||||
Dividends | (39,535) | (39,535) | |||||
Issuance of stock awards | 479 | 479 | |||||
Issuance of stock awards (shares) | 227,000 | ||||||
Shares repurchased | (4,088) | (4,088) | |||||
Shares repurchased (shares) | (78,000) | ||||||
Stock-based compensation | 3,048 | 3,048 | |||||
Ending Balance at Apr. 01, 2018 | 1,796,456 | $ 7,175 | 329,596 | (637,031) | 2,072,423 | 24,293 | |
Ending balance (shares) at Apr. 01, 2018 | 99,563,000 | ||||||
Beginning Balance at Dec. 31, 2017 | $ 1,730,060 | $ 7,175 | 330,157 | (666,272) | 2,036,006 | 22,994 | |
Beginning balance (shares) at Dec. 31, 2017 | 99,414,000 | ||||||
Other comprehensive income/(loss): | |||||||
Shares repurchased (shares) | 0 | ||||||
Ending Balance at Dec. 31, 2018 | $ 1,772,278 | [1] | $ 7,175 | 304,709 | (740,913) | 2,188,115 | 13,192 |
Ending balance (shares) at Dec. 31, 2018 | 99,829,000 | 99,829,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 73,768 | 73,663 | 105 | ||||
Other comprehensive income/(loss): | |||||||
Translation gain (loss) | (2,972) | (2,852) | (120) | ||||
Defined benefit plan adjustment, net of tax | 7,156 | 7,156 | |||||
Derivative financial instruments, net of tax | 1,864 | 1,864 | |||||
Other comprehensive income/(loss) | 6,048 | 6,168 | (120) | ||||
Dividends | (41,534) | (41,534) | |||||
Dividends paid to noncontrolling interests | (214) | (214) | |||||
Issuance of stock awards | 399 | 399 | |||||
Issuance of stock awards (shares) | 340,000 | ||||||
Shares repurchased | $ (7,395) | (7,395) | |||||
Shares repurchased (shares) | 0 | (133,000) | |||||
Stock-based compensation | $ 4,560 | 4,560 | |||||
Ending Balance at Mar. 31, 2019 | $ 1,801,139 | $ 7,175 | $ 302,273 | $ (734,745) | $ 2,213,473 | $ 12,963 | |
Ending balance (shares) at Mar. 31, 2019 | 100,036,000 | 100,036,000 | |||||
[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. |
Basis of Interim Presentation
Basis of Interim Presentation | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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, 2018.With respect to the unaudited condensed consolidated financial information of the Company for the three-month periods ended March 31, 2019 and April 1, 2018 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 May 1, 2019 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 | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In December 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-16 “Derivatives and Hedging: Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes,” which allows the use of the SOFR and OIS rate as benchmark rates after the Federal Reserve started publishing such daily rate on April 3, 2018. The Company adopted the standard effective January 1, 2019 using the prospective basis. The adoption did not have a material effect on the consolidated financial statements. In January 2016, the FASB issued ASU 2016-02, "Leases" (“ASU 2016-02”) requiring lessees to recognize on the balance sheet a right-of-use asset and lease liability for all long-term leases and requiring disclosure of key information about leasing arrangements in order 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 and the revenue recognition standard adopted in 2018. The Company established a cross-functional team to implement certain software solutions as part of its newly integrated enterprise-wide lease management system. The implementation plan included developing business processes, accounting systems, and internal controls to ensure the Company's compliance with reporting and disclosure requirements of the new standard. The Company elected the package of practical expedients permitted under the transition guidance within the new standard upon adoption and has made an accounting policy election to keep leases with a term of 12 months or less off of the balance sheet in accordance with ASU 2016-02’s short-term lease exemption provision. The Company is also electing the hindsight practical expedient to determine the reasonably certain lease term for existing leases and has elected to combine lease and non-lease components as a single lease component for all classes of assets. The Company adopted ASU 2016-02 as of January 1, 2019, using a modified retrospective transition method and elected to apply the optional transition approach prescribed by ASU 2018-11 which allows entities to initially apply the new leases standard at the adoption date, without adjusting comparative periods. The adoption of the ASU 2016-02 resulted in the Company recording a right of use asset impact of $336,083 and a lease liability impact of $344,362 to its consolidated balance sheet, partially offset by a cumulative effect adjustment to retained earnings of $6,771 and a $1,508 reduction to deferred tax liabilities. During the three-month period ended March 31, 2019, 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 March 31, 2019, there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The Company completed the acquisition of the remaining 70 percent interest in Conitex Sonoco (BVI), Ltd. ("Conitex Sonoco") from Texpack Investments, Inc. ("Texpack") on October 1, 2018. Concurrent with this acquisition, the Company also acquired a rigid paper facility in Spain ("Compositub") from Texpack Group Holdings B.V. Final consideration for both acquisitions was subject to a post-closing adjustment for the change in working capital to the date of closing. These adjustments were settled in February 2019 for additional cash payments to the sellers totaling $455. On April 12, 2018, the Company completed the acquisition of Highland Packaging Solutions ("Highland"). Highland manufactures thermoformed plastic packaging for fresh produce and dairy products from a single production facility in Plant City, Florida. The acquisition of Highland included a contingent purchase liability of $7,500 payable in two installments and based upon a sales metric which the Company expects to meet. The first installment of $5,000 is expected to be paid by the end of the second quarter of 2019 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 Sheets at March 31, 2019 and December 31,2018, with the first installment included in "Accrued expenses and other" and the second in "Other Liabilities." During the three months ended March 31, 2019, the Company continued to finalize its valuations of the assets acquired and liabilities assumed in acquisitions completed in the previous year based on new information obtained about facts and circumstances that existed as of their respective acquisition dates. As a result, the following measurement period adjustments were made to the previously disclosed provisional fair values: Conitex Sonoco Compositub Highland Trade accounts receivable $ (77) $ 203 $ — Inventories — 50 — Property, plant and equipment (199) (1,026) 1,895 Goodwill 1,971 (566) (1,895) Other intangible assets 300 1,888 — Accrued expenses and other (1,782) (138) — Other net tangible assets /(liabilities) (129) (40) — Net assets $ 84 $ 371 $ — Management is continuing to finalize its valuations of certain assets and liabilities associated with its 2018 acquisitions, 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 respective dates 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. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 April 1, 2018 Numerator: Net income attributable to Sonoco $ 73,663 $ 74,055 Denominator: Weighted average common shares outstanding: Basic 100,640 100,396 Dilutive effect of stock-based compensation 432 500 Diluted 101,072 100,896 Net income attributable to Sonoco per common share: Basic $ 0.73 $ 0.74 Diluted $ 0.73 $ 0.73 Cash dividends $ 0.41 $ 0.39 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 numbers of SARs that were not dilutive and, therefore, not included in the computation of diluted earnings per share during the three month periods ended March 31, 2019 and April 1, 2018 were as follows: Three Months Ended March 31, 2019 April 1, 2018 Anti-dilutive stock appreciation rights 305 738 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, 2018, or during the three months ended March 31, 2019. Accordingly, a total of 2,970 shares remain available for repurchase at March 31, 2019. 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 133 shares in the three months ended March 31, 2019 at a cost of $7,395, and 78 shares in the three months ended April 1, 2018 at a cost of $4,088. Dividend Declarations On February 13, 2019, the Board of Directors declared a regular quarterly dividend of $0.41 per share. This dividend was paid on March 8, 2019 to all shareholders of record as of February 27, 2019. On April 17, 2019, the Board of Directors declared a regular quar terly dividend of $0.43 per share. This dividend is payable on June 10, 2019 to all shareholders of record as of May 10, 2019. |
Restructuring and Asset Impairm
Restructuring and Asset Impairment | 3 Months Ended |
Mar. 31, 2019 | |
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 2019 and 2018 are reported as “2019 Actions” and “2018 Actions,” respectively. Actions initiated prior to 2018, all of which were substantially complete at March 31, 2019, are reported as “2017 and Earlier Actions.” Following are the total restructuring and asset impairment charges, net of adjustments, recognized by the Company during the periods presented: Three Months Ended March 31, 2019 April 1, 2018 Restructuring/Asset impairment: 2019 Actions $ 6,389 $ — 2018 Actions 4,046 2,207 2017 and Earlier Actions 237 856 Restructuring/Asset impairment charges 10,672 3,063 Income tax benefit (2,638) (685) Less: Costs attributable to noncontrolling interests, net of tax (69) (5) Restructuring/asset impairment charges attributable to Sonoco, net of tax $ 7,965 $ 2,373 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 $5,100 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 2019. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken. 2019 Actions During 2019, the Company announced the elimination of a forming film production line at a flexible packaging facility in the United States, and initiated the closure of a composite can and injection molding facility in Germany (both part of the Consumer Packaging segment). In addition, approximately 90 positions were eliminated in the first three months of 2019 in conjunction with the Company's ongoing organizational effectiveness efforts. Below is a summary of 2019 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2019 Actions First Quarter 2019 Estimated Severance and Termination Benefits Consumer Packaging $ 2,989 $ 6,639 Paper and Industrial Converted Products 422 422 Protective Solutions 341 341 Corporate 1,726 1,876 Asset Impairment / Disposal of Assets Consumer Packaging 312 312 Other Costs Consumer Packaging 442 442 Display and Packaging 155 255 Paper and Industrial Converted Products 2 2 Total Charges and Adjustments $ 6,389 $ 10,289 The following table sets forth the activity in the 2019 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: 2019 Actions Severance Asset Impairment/ Other Total Accrual Activity Liability at December 31, 2018 $ — $ — $ — $ — 2019 charges 5,478 312 599 6,389 Cash receipts/(payments) (3,165) — (212) (3,377) Asset write downs/disposals — (312) — (312) Foreign currency translation (1) — — (1) Liability at March 31, 2019 $ 2,312 $ — $ 387 $ 2,699 "Asset Impairment/Disposal of Assets" consist of an impairment charge resulting from the elimination of a forming film line at a flexible packaging facility. “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 2019 Actions restructuring costs by the end of 2019 using cash generated from operations. 2018 Actions During 2018, the Company announced the closure of a flexible packaging plant in North Carolina, a global brand management facility in Canada, and a thermoformed packaging plant in California (all part of the Consumer Packaging segment), five tube and core plants - one in Alabama, one in Canada, one in Indonesia, one in Russia, and one in Norway (all part of the Paper and Industrial Converted Products segment), and a protective packaging plant in North Carolina (part of the Protective Solutions segment). Restructuring actions in the Display and Packaging segment included charges associated with exiting a single-customer contract at a packaging center near Atlanta, Georgia. In addition, approximately 120 positions were eliminated throughout 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. Three Months Ended 2018 Actions March 31, 2019 April 1, 2018 Severance and Termination Benefits Consumer Packaging $ 641 $ 788 $ 5,341 $ 5,341 Display and Packaging 2 175 1,941 1,941 Paper and Industrial Converted Products 169 991 3,280 3,280 Protective Solutions (1) 259 1,074 1,074 Corporate — 223 243 243 Asset Impairment / Disposal of Assets Consumer Packaging 1,007 (14) 3,695 3,695 Display and Packaging 87 (272) 4,712 4,712 Paper and Industrial Converted Products 226 — 344 344 Protective Solutions — — (243) (243) Other Costs Consumer Packaging 1,809 11 4,199 5,049 Display and Packaging 48 — 9,898 10,048 Paper and Industrial Converted Products 40 — 1,801 1,901 Protective Solutions 18 46 64 64 Corporate — — (10) (10) Total Charges and Adjustments $ 4,046 $ 2,207 $ 36,339 $ 37,439 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 Asset Other Total Accrual Activity Liability at December 31, 2018 $ 3,194 $ — $ 179 $ 3,373 2019 charges 811 1,320 1,915 4,046 Cash receipts/(payments) (1,961) 422 (1,977) (3,516) Asset write downs/disposals — (1,742) — (1,742) Foreign currency translation 1 — 3 4 Liability at March 31, 2019 $ 2,045 $ — $ 120 $ 2,165 Included in "Asset Impairment/Disposal of Assets" above are losses totaling $232 related to the sale of fixed assets and inventory associated with the closure of a tube and core plant in Indonesia. The Company received proceeds of $416 from this sale and wrote off assets with a book value totaling $648. Additionally, "Asset Impairment/Disposal of Assets" above includes impairment charges of $909 related to the closure of a thermoformed packaging plant in California. “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 2018 Actions restructuring costs by the end of 2019 using cash generated from operations. 2017 and Earlier Actions 2017 and Earlier Actions are comprised of a number of plant closures and workforce reductions initiated prior to 2018. Charges for these actions in both 2019 and 2018 primarily relate t o the cost of plant closures including severance, equipment removal, plant security, property taxes and insurance. The Company expects to recognize future pretax charges of approximatel y $100 a ssociated with 2017 and Earlier Actions. Below is a summary of expenses/(income) incurred by segment for 2017 and Earlier Actions for the three-month periods ended March 31, 2019 and April 1, 2018. Three Months Ended 2017 and Earlier Actions March 31, 2019 April 1, 2018 Consumer Packaging $ 55 $ 944 Display and Packaging 83 (189) Paper and Industrial Converted Products 15 (144) Protective Solutions 84 245 Total (credits)/charges, net of adjustments $ 237 $ 856 The accrual for 2017 and Earlier Actions totaled $1,653 and $4,199 at March 31, 2019 and December 31, 2018, respectively, and is included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets. The majority of the liability associated with 2017 and Earlier Actions relates to unpaid severance costs and is expected to be paid by the end of 2019 using cash generated from operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 and April 1, 2018: Foreign Defined Gains and Accumulated Balance at December 31, 2017 $ (198,495) $ (467,136) $ (641) $ (666,272) Other comprehensive income/(loss) before reclassifications 22,553 (1,145) 1,182 22,590 Amounts reclassified from accumulated other comprehensive loss to net income — 6,962 (180) 6,782 Amounts reclassified from accumulated other comprehensive loss to fixed assets — — 45 45 Other comprehensive income 22,553 5,817 1,047 29,417 Amounts reclassified from retained earnings to accumulated other comprehensive loss — — (176) (176) Balance at April 1, 2018 $ (175,942) $ (461,319) $ 230 $ (637,031) Balance at December 31, 2018 $ (251,102) $ (487,380) $ (2,431) $ (740,913) Other comprehensive income/(loss) before reclassifications (2,852) (508) 2,256 (1,104) Amounts reclassified from accumulated other comprehensive loss to net income — 7,664 (347) 7,317 Amounts reclassified from accumulated other comprehensive loss to fixed assets — — (45) (45) Other comprehensive income/(loss) (2,852) 7,156 1,864 6,168 Balance at March 31, 2019 $ (253,954) $ (480,224) $ (567) $ (734,745) The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three month periods ended March 31, 2019 and April 1, 2018: Amount Reclassified from Accumulated Three Months Ended Details about Accumulated Other March 31, April 1, Affected Line Item in Gains and losses on cash flow hedges Foreign exchange contracts $ 317 $ 810 Net sales Foreign exchange contracts (288) (527) Cost of sales Commodity contracts 435 (58) Cost of sales $ 464 $ 225 Income before income taxes (117) (45) Provision for income taxes $ 347 $ 180 Net income Defined benefit pension items Effect of settlement loss (a) $ (1,322) $ — Non-operating pension (costs)/income Amortization of defined benefit pension items (a) (8,932) (9,301) Non-operating pension (costs)/income $ (10,254) $ (9,301) Income before income taxes 2,590 2,339 Provision for income taxes $ (7,664) $ (6,962) Net income Total reclassifications for the period $ (7,317) $ (6,782) Net income (a) See Note 10 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 March 31, 2019 and April 1, 2018: Three months ended March 31, 2019 Three months ended April 1, 2018 Before Tax Tax After Tax Before Tax Tax After Tax Foreign currency items: Net other comprehensive income/(loss) from foreign currency items $ (2,852) $ — $ (2,852) $ 22,553 $ — $ 22,553 Defined benefit pension items: Other comprehensive income/(loss) before (681) 173 (508) (1,145) — (1,145) Amounts reclassified from accumulated other 10,254 (2,590) 7,664 9,301 (2,339) 6,962 Net other comprehensive income/(loss) from 9,573 (2,417) 7,156 8,156 (2,339) 5,817 Gains and losses on cash flow hedges: Other comprehensive income/(loss) before 3,022 (766) 2,256 1,475 (293) 1,182 Amounts reclassified from accumulated other (464) 117 (347) (225) 45 (180) Amounts reclassified from accumulated other (45) — (45) 45 — 45 Net other comprehensive income/(loss) from 2,513 (649) 1,864 1,295 (248) 1,047 Other comprehensive income/(loss): $ 9,234 $ (3,066) $ 6,168 $ 32,004 $ (2,587) $ 29,417 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 is as follows: Consumer Display Paper and Protective Total Goodwill at December 31, 2018 $ 617,332 $ 203,414 $ 256,947 $ 231,474 $ 1,309,167 Foreign currency translation (690) — (929) 108 (1,511) Other (2,461) — 1,971 — (490) Goodwill at March 31, 2019 $ 614,181 $ 203,414 $ 257,989 $ 231,582 $ 1,307,166 Measurement period adjustments made in the first three months of 2019 to finalize the fair values of the assets acquired and the liabilities assumed in the 2018 acquisitions of Compositub, Highland, and Conitex Sonoco resulted in increases/(decreases) in goodwill of $(566), $(1,895) and $1,971, respectively. These adjustments are reflected above in "Other." See Note 3 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 2018. 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 discount rates, and the Company's forecast of sales volumes and prices, new business, profit margins, income taxes, capital expenditures and changes in working capital requirements. Changes in these assumptions 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 goodwill of the Display and Packaging reporting unit is at risk of impairment in the near term if operating performance does not continue to improve in line with management's expectations, or if there is a negative change in the long-term outlook for the business or in other factors such as the discount rate. Total goodwill associated with this reporting unit was $203,414 at March 31, 2019. In addition, 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. During the time subsequent to the annual evaluation, and at March 31, 2019, the Company considered whether any events and/or changes in circumstances had resulted in the likelihood that the goodwill of any of its reporting units may have been impaired. It is management's opinion that no such events have occurred. Other Intangible Assets A summary of other intangible assets as of March 31, 2019 and December 31, 2018 is as follows: March 31, December 31, Other Intangible Assets, gross: Patents $ 22,496 $ 22,509 Customer lists 548,443 548,038 Trade names 31,010 31,174 Proprietary technology 28,333 28,748 Land use rights 286 282 Other 2,124 2,093 Other Intangible Assets, gross $ 632,692 $ 632,844 Accumulated Amortization: Patents (10,021) (9,539) Customer lists (256,696) (246,946) Trade names (7,773) (7,413) Proprietary technology (15,818) (15,400) Land use rights (49) (48) Other (1,491) (1,461) Total Accumulated Amortization $ (291,848) $ (280,807) Other Intangible Assets, net $ 340,844 $ 352,037 Measurement period adjustments made in the first three months of 2019 to finalize the fair values of the assets acquired and the liabilities assumed in the 2018 acquisitions of Compositub and Conitex Sonoco resulted in increases in other intangible assets, primarily customer lists, of $1,888 and $300, respectively. Other intangible assets are amortized on a straight-line basis over their respective useful lives, which generally range from three Aggregate amortization expense was $12,792 and $10,202 for the three months ended March 31, 2019 and April 1, 2018, respectively. Amortization expense on other intangible assets is expected to total approximately $50,000 in 2019, $47,600 in 2020, $45,600 in 2021, $43,200 in 2022 and $38,400 in 2023. |
Financial Instruments and Deriv
Financial Instruments and Derivatives | 3 Months Ended |
Mar. 31, 2019 | |
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. March 31, 2019 December 31, 2018 Carrying Fair Carrying Fair Long-term debt, net of current portion $ 1,189,415 $ 1,273,699 $ 1,189,717 $ 1,270,521 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. Cash Flow Hedges At March 31, 2019 and December 31, 2018, 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 2020, 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. 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 March 31, 2019, natural gas swaps covering approximately 6.0 million MMBTUs were outstanding. These contracts represent approximately 74% and 42% of anticipated U.S. and Canadian usage for the remainder of 2019 and 2020, respectively. Additionally, the Company had swap contracts covering 3,062 metric tons of aluminum, representing approximately 51% of anticipated usage for the remainder of 2019. The fair values of the Company’s commodity cash flow hedges netted to a loss position of $(914) and $(1,571) at March 31, 2019 and December 31, 2018 respectively. The amount of the loss included in Accumulated Other Comprehensive Loss at March 31, 2019, that is expected to be reclassified to the income statement during the next twelve months is $(918). 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 2019. The net positions of these contracts at March 31, 2019 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 12,928,059 Mexican peso purchase 341,547 Polish zloty purchase 50,222 Canadian dollar purchase 46,690 Czech koruna purchase 34,652 Turkish lira purchase 4,917 British pound purchase 1,133 Swedish krona sell (2,180) Euro sell (13,542) Russian ruble sell (83,981) The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to a gain position of $155 at March 31, 2019 and a loss position of $(1,624) at December 31, 2018. Gains of $155 are expected to be reclassified from accumulated other comprehensive income to the income statement during the next twelve months. I n addition, the Company has entered into forward contracts to hedge certain foreign currency cash flow transactions related to construction in progress. As of March 31, 2019 and at December 31, 2018, the net position of these contracts were $(57) and $(88), respectively. During the three months ended March 31, 2019, losses from these hedges totaling $(45) were reclassified from accumulated other comprehensive income and included in the carrying value of the related fixed assets acquired. Losses of $(57) 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. 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 March 31, 2019, were as follows (in thousands): Currency Action Quantity Colombian peso purchase 9,199,944 Mexican peso purchase 420,776 Canadian dollar purchase 21,475 South African rand sell (8,261) The fair value of the Company’s other derivatives was a loss position of $(164) and a gain position of $166 at March 31, 2019 and December 31, 2018, respectively. The following table sets forth the location and fair values of the Company’s derivative instruments at March 31, 2019 and December 31, 2018: Description Balance Sheet Location March 31, 2019 December 31, 2018 Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ 144 $ 282 Commodity Contracts Other assets $ 95 $ — Commodity Contracts Accrued expenses and other $ (1,153) $ (1,843) Commodity Contracts Other liabilities $ — $ (10) Foreign Exchange Contracts Prepaid expenses $ 1,119 $ 770 Foreign Exchange Contracts Accrued expenses and other $ (1,021) $ (2,482) Derivatives not designated as hedging instruments: Foreign Exchange Contracts Prepaid expenses $ — $ 727 Foreign Exchange Contracts Accrued expenses and other $ (164) $ (561) 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 March 31, 2019 and April 1, 2018: Description Amount of Gain or Location of Gain Amount of Gain or Derivatives in Cash Flow Hedging Relationships: Three months ended March 31, 2019 Foreign Exchange Contracts $ 1,930 Net sales $ 317 Cost of sales $ (288) Commodity Contracts $ 1,092 Cost of sales $ 435 Three months ended April 1, 2018 Foreign Exchange Contracts $ 1,646 Net sales $ 810 Cost of sales $ (527) Commodity Contracts $ (171) Cost of sales $ (58) Description Gain or (Loss) Location of Gain or (Loss) Recognized in Derivatives not Designated as Hedging Instruments: Three months ended March 31, 2019 Foreign Exchange Contracts $ — Cost of sales $ (1,465) Selling, general and administrative Three months ended April 1, 2018 Foreign Exchange Contracts $ — Cost of sales $ 754 Selling, general and administrative Three months ended March 31, 2019 Three months ended April 1, 2018 Description Revenue Cost of Revenue Cost of Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 317 $ 147 $ 810 $ (585) 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 $ 317 $ (288) $ 810 $ (527) Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income $ — $ 435 $ — $ (58) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (914) $ — $ — $ (914) $ — Foreign exchange contracts $ 155 $ — $ — $ 155 $ — Non-hedge derivatives, net: Foreign exchange contracts $ (164) $ — $ — $ (164) $ — Deferred compensation plan assets $ 286 $ — $ 286 $ — $ — Description December 31, 2018 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (1,571) $ — $ — $ (1,571) $ — Foreign exchange contracts $ (1,712) $ — $ — $ (1,712) $ — Non-hedge derivatives, net: Foreign exchange contracts $ 166 $ — $ — $ 166 $ — Deferred compensation plan assets $ 260 $ — $ 260 $ — $ — As discussed in Note 8, 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-month periods ended March 31, 2019. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
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, non-union participants effective December 31, 2018. Remaining active participants in the U.S. qualified plan became eligible for SRC contributions effective January 1, 2019. The components of net periodic benefit cost include the following: Three Months Ended March 31, 2019 April 1, 2018 Retirement Plans Service cost $ 941 $ 4,672 Interest cost 14,943 13,978 Expected return on plan assets (19,097) (23,209) Amortization of prior service cost 214 249 Amortization of net actuarial loss 9,034 9,420 Effect of settlement loss 1,322 — Net periodic benefit cost $ 7,357 $ 5,110 Retiree Health and Life Insurance Plans Service cost $ 74 $ 79 Interest cost 118 111 Expected return on plan assets (177) (472) Amortization of prior service credit (123) (126) Amortization of net actuarial gain (193) (242) Net periodic benefit income $ (301) $ (650) The Company made aggregate contributions of $2,780 and $4,573 to its defined benefit retirement and retiree health and life insurance plans during the three months ended March 31, 2019 and April 1, 2018, respectively. Although no contributions are required to be made to the Company's U.S. qualified pension plans in 2019, the Company is considering various options for de-risking these plans which could include additional, voluntary contributions in 2019 and reallocation of the assets held by the plans to a more conservative mix of fixed income and equity securities. Excluding the potential voluntary contributions, the Company expects to make additional aggregate contributions of approximately $13,500 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2019. The Company recognized settlement charges totaling $1,322 during the three months ended March 31, 2019 resulting from payments made to certain participants of the Company's Canadian pension plan who elected the lump sum option of distribution upon retirement. There were no settlement losses during the same period of the prior year. Sonoco Retirement Contribution (SRC) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the three-month periods ending March 31, 2019 and April 1, 2018 was 23.7% and 24.1%, respectively. The rate for the three-month period ending March 31, 2019 varied from the U.S. statutory rate due primarily to the unfavorable effect of certain international operations that were subject to tax rates generally higher than the U.S. tax rate, as well as the effect of state income taxes. The rate for the three-month period ending April 1, 2018 varied from the U.S. statutory rate due primarily to the effect of the Global Intangible Low Taxed Income (GILTI) tax as well as the effect of state income taxes. The Company and/or its subsidiaries file federal, state and local income tax returns in the United States and various foreign jurisdictions. The Company is currently under audit for the 2012 and 2013 tax years and has entered the appeals process with the Internal Revenue Service. Other than the aforementioned audit, with few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years prior to 2015. The Company’s reserve for uncertain tax benefits has increased by approximately $100 since December 31, 2018, 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 March 31, 2019 will decrease by approximately $2,500 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 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, warehouses, and packaging centers), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company's lease contracts is at the Company's sole discretion. Most real estate leases, in particular, include one or more options to renew, with renewal terms that can extend the lease term from one As the implicit rate in the Company's leases is not readily determinable, the Company calculates its right of use lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years. See Note 2 for further information regarding the Company's adoption of ASU 2016-02, "Leases." The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at March 31, 2019: Classification Balance Sheet Location March 31, 2019 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 308,166 Finance lease assets Other Assets 22,122 Total lease assets 330,288 Lease Liabilities Current operating lease liabilities Accrued expenses and other 54,979 Current finance lease liabilities Notes payable and current portion of debt 9,684 Total current lease liabilities 64,663 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities 262,663 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 11,472 Total noncurrent lease liabilities 274,135 Total lease liabilities $ 338,798 As of March 31, 2019, the Company has entered into additional leases that have not yet commenced. The associated contracts include payments over the respective lease terms totaling $1,789, which are not reflected in the Company's liabilities recorded as of March 31, 2019. These leases will commence during fiscal year 2019 with lease terms ranging from 3 years to 6.4 years. Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use asset recorded on the balance sheet was determined based upon factors considered at the commencement date, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term. The following table sets forth the components of the Company's total lease cost for the three months ended March 31, 2019: Lease Cost Three Months Ended March 31, 2019 Operating lease cost (a) $ 15,545 Finance lease cost: Amortization of lease asset (a) (b) 2,069 Interest on lease liabilities (c) 276 Variable lease cost (a) (d) 9,178 Total lease cost $ 27,068 (a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively. (b) Included in depreciation and amortization. (c) Included in interest expense. (d) Also includes short term lease costs, which are deemed immaterial. In compliance with ASC 842, the Company must provide the prior year disclosures required under the previous lease guidance (ASC 840) for comparative periods presented herein. Rental expense under operating leases for the three months ended April 1, 2018 was $18,901. The following table sets forth the five-year maturity schedule of the Company's lease liabilities as of March 31, 2019: Maturity of Lease Liabilities Operating Leases Finance Leases Total 2019 (excluding three months ended March 31, 2019) $ 45,175 $ 7,522 $ 52,697 2020 53,114 8,649 61,763 2021 45,288 3,132 48,420 2022 39,572 1,609 41,181 2023 36,248 969 37,217 Beyond 2023 188,226 836 189,062 Total lease payments $ 407,623 $ 22,717 $ 430,340 Less: Interest 89,981 1,561 91,542 Lease Liabilities $ 317,642 $ 21,156 $ 338,798 As presented in our 2018 Form 10-K (under ASC 840), the future minimum rentals under noncancellable operating leases with terms of more than one year, payable over the remaining lives of the leases at December 31, 2018, were as follows: Period Minimum Future Rental Commitments 2019 $ 48,200 2020 41,700 2021 32,500 2022 27,300 2023 21,400 Beyond 2023 92,300 The following tables set forth the Company's weighted average remaining lease term and discount rates used in the calculation of its outstanding lease liabilities March 31, 2019, along with other lease-related information for the three months ended March 31, 2019: Lease Term and Discount Rate As of March 31, 2019 Weighted-average remaining lease term (years): Operating leases 11.4 Finance leases 3.0 Weighted-average discount rate: Operating leases 4.96% Finance leases 5.10% Other Information Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 15,246 Operating cash flows used by finance leases $ 276 Financing cash flows used by finance leases $ 2,281 Leased assets obtained in exchange for new operating lease liabilities $ 661 Leased assets obtained in exchange for new finance lease liabilities $ — |
Leases | Leases The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, warehouses, and packaging centers), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company's lease contracts is at the Company's sole discretion. Most real estate leases, in particular, include one or more options to renew, with renewal terms that can extend the lease term from one As the implicit rate in the Company's leases is not readily determinable, the Company calculates its right of use lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years. See Note 2 for further information regarding the Company's adoption of ASU 2016-02, "Leases." The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at March 31, 2019: Classification Balance Sheet Location March 31, 2019 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 308,166 Finance lease assets Other Assets 22,122 Total lease assets 330,288 Lease Liabilities Current operating lease liabilities Accrued expenses and other 54,979 Current finance lease liabilities Notes payable and current portion of debt 9,684 Total current lease liabilities 64,663 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities 262,663 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 11,472 Total noncurrent lease liabilities 274,135 Total lease liabilities $ 338,798 As of March 31, 2019, the Company has entered into additional leases that have not yet commenced. The associated contracts include payments over the respective lease terms totaling $1,789, which are not reflected in the Company's liabilities recorded as of March 31, 2019. These leases will commence during fiscal year 2019 with lease terms ranging from 3 years to 6.4 years. Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use asset recorded on the balance sheet was determined based upon factors considered at the commencement date, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term. The following table sets forth the components of the Company's total lease cost for the three months ended March 31, 2019: Lease Cost Three Months Ended March 31, 2019 Operating lease cost (a) $ 15,545 Finance lease cost: Amortization of lease asset (a) (b) 2,069 Interest on lease liabilities (c) 276 Variable lease cost (a) (d) 9,178 Total lease cost $ 27,068 (a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively. (b) Included in depreciation and amortization. (c) Included in interest expense. (d) Also includes short term lease costs, which are deemed immaterial. In compliance with ASC 842, the Company must provide the prior year disclosures required under the previous lease guidance (ASC 840) for comparative periods presented herein. Rental expense under operating leases for the three months ended April 1, 2018 was $18,901. The following table sets forth the five-year maturity schedule of the Company's lease liabilities as of March 31, 2019: Maturity of Lease Liabilities Operating Leases Finance Leases Total 2019 (excluding three months ended March 31, 2019) $ 45,175 $ 7,522 $ 52,697 2020 53,114 8,649 61,763 2021 45,288 3,132 48,420 2022 39,572 1,609 41,181 2023 36,248 969 37,217 Beyond 2023 188,226 836 189,062 Total lease payments $ 407,623 $ 22,717 $ 430,340 Less: Interest 89,981 1,561 91,542 Lease Liabilities $ 317,642 $ 21,156 $ 338,798 As presented in our 2018 Form 10-K (under ASC 840), the future minimum rentals under noncancellable operating leases with terms of more than one year, payable over the remaining lives of the leases at December 31, 2018, were as follows: Period Minimum Future Rental Commitments 2019 $ 48,200 2020 41,700 2021 32,500 2022 27,300 2023 21,400 Beyond 2023 92,300 The following tables set forth the Company's weighted average remaining lease term and discount rates used in the calculation of its outstanding lease liabilities March 31, 2019, along with other lease-related information for the three months ended March 31, 2019: Lease Term and Discount Rate As of March 31, 2019 Weighted-average remaining lease term (years): Operating leases 11.4 Finance leases 3.0 Weighted-average discount rate: Operating leases 4.96% Finance leases 5.10% Other Information Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 15,246 Operating cash flows used by finance leases $ 276 Financing cash flows used by finance leases $ 2,281 Leased assets obtained in exchange for new operating lease liabilities $ 661 Leased assets obtained in exchange for new finance lease liabilities $ — |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition 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. March 31, 2019 December 31, 2018 Contract Assets $ 51,332 $ 48,786 Contract Liabilities $ (14,757) $ (18,533) Significant changes in the contract assets and liabilities balances during the period were as follows: March 31, 2019 December 31, 2018 Contract Contract Contract Contract Beginning Balance $ 48,786 $ (18,533) $ 45,877 $ (17,736) Revenue deferred or rebates accrued — (6,928) — (19,730) Recognized as revenue 2,098 1,652 Rebates paid to customers — 8,606 — 17,281 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 51,332 — 48,786 — Transferred to receivables from contract assets recognized at the beginning of the period (48,786) — (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 — — — — Impairment of contract asset — — — — Ending Balance $ 51,332 $ (14,757) $ 48,786 $ (18,533) 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, volume rebates, and receipts of advanced payments. For multi-year arrangements with pricing mechanisms, the Company will generally 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 14. The following tables set forth information about revenue disaggregated by primary geographic regions, and timing of revenue recognition for the three-month periods ended March 31, 2019 and April 1, 2018. The tables also include a reconciliation of disaggregated revenue with reportable segments. Three months ended March 31, 2019 Consumer Display and Paper and Protective Primary Geographical Markets: United States $ 416,397 $ 65,563 $ 268,566 $ 101,178 Europe 108,213 70,242 90,705 5,867 Canada 27,301 — 32,833 — Asia 15,913 — 69,060 920 Other 21,892 1,749 34,873 20,433 Total $ 589,716 $ 137,554 $ 496,037 $ 128,398 Timing of Revenue Recognition: Products transferred at a point in time $ 339,462 $ 57,410 $ 479,480 $ 107,897 Products transferred over time 250,254 80,144 16,557 20,501 Total $ 589,716 $ 137,554 $ 496,037 $ 128,398 Three months ended April 1, 2018 Consumer Packaging Display and Paper and Protective Primary Geographical Markets: United States $ 397,986 $ 73,884 $ 265,762 $ 110,500 Europe 107,230 65,945 92,855 6,789 Canada 27,706 — 32,873 — Asia 16,490 — 35,309 988 Other 20,440 2,829 33,854 12,747 Total $ 569,852 $ 142,658 $ 460,653 $ 131,024 Timing of Revenue Recognition: Products transferred at a point in time $ 345,003 $ 64,715 $ 440,477 $ 111,798 Products transferred over time 224,849 77,943 20,176 19,226 Total $ 569,852 $ 142,658 $ 460,653 $ 131,024 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
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: designing, manufacturing, assembling, packing and distributing temporary, semi-permanent and permanent point-of-purchase displays; supply chain management services, including contract packing, fulfillment and scalable service centers; retail packaging, including printed backer cards, thermoformed blisters and heat sealing equipment; and paper amenities, such as coasters and glass covers. The Paper and Industrial Converted Products segment includes the following products: paperboard tubes, cones, and cores; fiber-based construction tubes; 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 March 31, 2019 April 1, 2018 Net sales: Consumer Packaging $ 589,716 $ 569,852 Display and Packaging 137,554 142,658 Paper and Industrial Converted Products 496,037 460,653 Protective Solutions 128,398 131,024 Consolidated $ 1,351,705 $ 1,304,187 Intersegment sales: Consumer Packaging $ 921 $ 739 Display and Packaging 1,167 538 Paper and Industrial Converted Products 33,654 34,543 Protective Solutions 462 573 Consolidated $ 36,204 $ 36,393 Operating profit: Segment operating profit: Consumer Packaging $ 62,115 $ 61,088 Display and Packaging 6,454 1,732 Paper and Industrial Converted 48,387 39,781 Protective Solutions 11,004 10,680 Restructuring/Asset impairment charges (10,672) (3,063) Other, net (400) (120) Consolidated $ 116,888 $ 110,098 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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 $1,480 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 March 31, 2019 and December 31, 2018, the Company's accrual for environmental contingencies related to the Spartanburg site totaled $15,937 and $15,964, 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 March 31, 2019 and December 31, 2018, the Company's accrual for these other sites totaled $4,059 and $4,136, respectively. Summary As of March 31, 2019 and December 31, 2018, the Company (and its subsidiaries) had accrued $19,996 and $20,100, 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) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | In December 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-16 “Derivatives and Hedging: Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes,” which allows the use of the SOFR and OIS rate as benchmark rates after the Federal Reserve started publishing such daily rate on April 3, 2018. The Company adopted the standard effective January 1, 2019 using the prospective basis. The adoption did not have a material effect on the consolidated financial statements. In January 2016, the FASB issued ASU 2016-02, "Leases" (“ASU 2016-02”) requiring lessees to recognize on the balance sheet a right-of-use asset and lease liability for all long-term leases and requiring disclosure of key information about leasing arrangements in order 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 and the revenue recognition standard adopted in 2018. The Company established a cross-functional team to implement certain software solutions as part of its newly integrated enterprise-wide lease management system. The implementation plan included developing business processes, accounting systems, and internal controls to ensure the Company's compliance with reporting and disclosure requirements of the new standard. The Company elected the package of practical expedients permitted under the transition guidance within the new standard upon adoption and has made an accounting policy election to keep leases with a term of 12 months or less off of the balance sheet in accordance with ASU 2016-02’s short-term lease exemption provision. The Company is also electing the hindsight practical expedient to determine the reasonably certain lease term for existing leases and has elected to combine lease and non-lease components as a single lease component for all classes of assets. The Company adopted ASU 2016-02 as of January 1, 2019, using a modified retrospective transition method and elected to apply the optional transition approach prescribed by ASU 2018-11 which allows entities to initially apply the new leases standard at the adoption date, without adjusting comparative periods. The adoption of the ASU 2016-02 resulted in the Company recording a right of use asset impact of $336,083 and a lease liability impact of $344,362 to its consolidated balance sheet, partially offset by a cumulative effect adjustment to retained earnings of $6,771 and a $1,508 reduction to deferred tax liabilities. During the three-month period ended March 31, 2019, 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 March 31, 2019, there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements. |
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. |
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. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of measurement period adjustments | As a result, the following measurement period adjustments were made to the previously disclosed provisional fair values: Conitex Sonoco Compositub Highland Trade accounts receivable $ (77) $ 203 $ — Inventories — 50 — Property, plant and equipment (199) (1,026) 1,895 Goodwill 1,971 (566) (1,895) Other intangible assets 300 1,888 — Accrued expenses and other (1,782) (138) — Other net tangible assets /(liabilities) (129) (40) — Net assets $ 84 $ 371 $ — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Earnings per share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended March 31, 2019 April 1, 2018 Numerator: Net income attributable to Sonoco $ 73,663 $ 74,055 Denominator: Weighted average common shares outstanding: Basic 100,640 100,396 Dilutive effect of stock-based compensation 432 500 Diluted 101,072 100,896 Net income attributable to Sonoco per common share: Basic $ 0.73 $ 0.74 Diluted $ 0.73 $ 0.73 Cash dividends $ 0.41 $ 0.39 |
Schedule of antidilutive securities excluded from computation of earnings per share | The average numbers of SARs that were not dilutive and, therefore, not included in the computation of diluted earnings per share during the three month periods ended March 31, 2019 and April 1, 2018 were as follows: Three Months Ended March 31, 2019 April 1, 2018 Anti-dilutive stock appreciation rights 305 738 |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: Three Months Ended March 31, 2019 April 1, 2018 Restructuring/Asset impairment: 2019 Actions $ 6,389 $ — 2018 Actions 4,046 2,207 2017 and Earlier Actions 237 856 Restructuring/Asset impairment charges 10,672 3,063 Income tax benefit (2,638) (685) Less: Costs attributable to noncontrolling interests, net of tax (69) (5) Restructuring/asset impairment charges attributable to Sonoco, net of tax $ 7,965 $ 2,373 |
Actions and related expenses by segment and by type incurred and estimated for current year | Below is a summary of 2019 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2019 Actions First Quarter 2019 Estimated Severance and Termination Benefits Consumer Packaging $ 2,989 $ 6,639 Paper and Industrial Converted Products 422 422 Protective Solutions 341 341 Corporate 1,726 1,876 Asset Impairment / Disposal of Assets Consumer Packaging 312 312 Other Costs Consumer Packaging 442 442 Display and Packaging 155 255 Paper and Industrial Converted Products 2 2 Total Charges and Adjustments $ 6,389 $ 10,289 |
Restructuring accrual activity for current year | The following table sets forth the activity in the 2019 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: 2019 Actions Severance Asset Impairment/ Other Total Accrual Activity Liability at December 31, 2018 $ — $ — $ — $ — 2019 charges 5,478 312 599 6,389 Cash receipts/(payments) (3,165) — (212) (3,377) Asset write downs/disposals — (312) — (312) Foreign currency translation (1) — — (1) Liability at March 31, 2019 $ 2,312 $ — $ 387 $ 2,699 |
Actions and related expenses by segment and by type incurred and estimated in prior year | Below is a summary of 2018 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. Three Months Ended 2018 Actions March 31, 2019 April 1, 2018 Severance and Termination Benefits Consumer Packaging $ 641 $ 788 $ 5,341 $ 5,341 Display and Packaging 2 175 1,941 1,941 Paper and Industrial Converted Products 169 991 3,280 3,280 Protective Solutions (1) 259 1,074 1,074 Corporate — 223 243 243 Asset Impairment / Disposal of Assets Consumer Packaging 1,007 (14) 3,695 3,695 Display and Packaging 87 (272) 4,712 4,712 Paper and Industrial Converted Products 226 — 344 344 Protective Solutions — — (243) (243) Other Costs Consumer Packaging 1,809 11 4,199 5,049 Display and Packaging 48 — 9,898 10,048 Paper and Industrial Converted Products 40 — 1,801 1,901 Protective Solutions 18 46 64 64 Corporate — — (10) (10) Total Charges and Adjustments $ 4,046 $ 2,207 $ 36,339 $ 37,439 |
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 Asset Other Total Accrual Activity Liability at December 31, 2018 $ 3,194 $ — $ 179 $ 3,373 2019 charges 811 1,320 1,915 4,046 Cash receipts/(payments) (1,961) 422 (1,977) (3,516) Asset write downs/disposals — (1,742) — (1,742) Foreign currency translation 1 — 3 4 Liability at March 31, 2019 $ 2,045 $ — $ 120 $ 2,165 |
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 2017 and Earlier Actions for the three-month periods ended March 31, 2019 and April 1, 2018. Three Months Ended 2017 and Earlier Actions March 31, 2019 April 1, 2018 Consumer Packaging $ 55 $ 944 Display and Packaging 83 (189) Paper and Industrial Converted Products 15 (144) Protective Solutions 84 245 Total (credits)/charges, net of adjustments $ 237 $ 856 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 and April 1, 2018: Foreign Defined Gains and Accumulated Balance at December 31, 2017 $ (198,495) $ (467,136) $ (641) $ (666,272) Other comprehensive income/(loss) before reclassifications 22,553 (1,145) 1,182 22,590 Amounts reclassified from accumulated other comprehensive loss to net income — 6,962 (180) 6,782 Amounts reclassified from accumulated other comprehensive loss to fixed assets — — 45 45 Other comprehensive income 22,553 5,817 1,047 29,417 Amounts reclassified from retained earnings to accumulated other comprehensive loss — — (176) (176) Balance at April 1, 2018 $ (175,942) $ (461,319) $ 230 $ (637,031) Balance at December 31, 2018 $ (251,102) $ (487,380) $ (2,431) $ (740,913) Other comprehensive income/(loss) before reclassifications (2,852) (508) 2,256 (1,104) Amounts reclassified from accumulated other comprehensive loss to net income — 7,664 (347) 7,317 Amounts reclassified from accumulated other comprehensive loss to fixed assets — — (45) (45) Other comprehensive income/(loss) (2,852) 7,156 1,864 6,168 Balance at March 31, 2019 $ (253,954) $ (480,224) $ (567) $ (734,745) |
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 month periods ended March 31, 2019 and April 1, 2018: Amount Reclassified from Accumulated Three Months Ended Details about Accumulated Other March 31, April 1, Affected Line Item in Gains and losses on cash flow hedges Foreign exchange contracts $ 317 $ 810 Net sales Foreign exchange contracts (288) (527) Cost of sales Commodity contracts 435 (58) Cost of sales $ 464 $ 225 Income before income taxes (117) (45) Provision for income taxes $ 347 $ 180 Net income Defined benefit pension items Effect of settlement loss (a) $ (1,322) $ — Non-operating pension (costs)/income Amortization of defined benefit pension items (a) (8,932) (9,301) Non-operating pension (costs)/income $ (10,254) $ (9,301) Income before income taxes 2,590 2,339 Provision for income taxes $ (7,664) $ (6,962) Net income Total reclassifications for the period $ (7,317) $ (6,782) Net income (a) See Note 10 for additional details. |
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 March 31, 2019 and April 1, 2018: Three months ended March 31, 2019 Three months ended April 1, 2018 Before Tax Tax After Tax Before Tax Tax After Tax Foreign currency items: Net other comprehensive income/(loss) from foreign currency items $ (2,852) $ — $ (2,852) $ 22,553 $ — $ 22,553 Defined benefit pension items: Other comprehensive income/(loss) before (681) 173 (508) (1,145) — (1,145) Amounts reclassified from accumulated other 10,254 (2,590) 7,664 9,301 (2,339) 6,962 Net other comprehensive income/(loss) from 9,573 (2,417) 7,156 8,156 (2,339) 5,817 Gains and losses on cash flow hedges: Other comprehensive income/(loss) before 3,022 (766) 2,256 1,475 (293) 1,182 Amounts reclassified from accumulated other (464) 117 (347) (225) 45 (180) Amounts reclassified from accumulated other (45) — (45) 45 — 45 Net other comprehensive income/(loss) from 2,513 (649) 1,864 1,295 (248) 1,047 Other comprehensive income/(loss): $ 9,234 $ (3,066) $ 6,168 $ 32,004 $ (2,587) $ 29,417 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in goodwill by segment | A summary of the changes in goodwill by segment for the three months ended March 31, 2019 is as follows: Consumer Display Paper and Protective Total Goodwill at December 31, 2018 $ 617,332 $ 203,414 $ 256,947 $ 231,474 $ 1,309,167 Foreign currency translation (690) — (929) 108 (1,511) Other (2,461) — 1,971 — (490) Goodwill at March 31, 2019 $ 614,181 $ 203,414 $ 257,989 $ 231,582 $ 1,307,166 |
Summary of other intangible assets | A summary of other intangible assets as of March 31, 2019 and December 31, 2018 is as follows: March 31, December 31, Other Intangible Assets, gross: Patents $ 22,496 $ 22,509 Customer lists 548,443 548,038 Trade names 31,010 31,174 Proprietary technology 28,333 28,748 Land use rights 286 282 Other 2,124 2,093 Other Intangible Assets, gross $ 632,692 $ 632,844 Accumulated Amortization: Patents (10,021) (9,539) Customer lists (256,696) (246,946) Trade names (7,773) (7,413) Proprietary technology (15,818) (15,400) Land use rights (49) (48) Other (1,491) (1,461) Total Accumulated Amortization $ (291,848) $ (280,807) Other Intangible Assets, net $ 340,844 $ 352,037 |
Financial Instruments and Der_2
Financial Instruments and Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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. March 31, 2019 December 31, 2018 Carrying Fair Carrying Fair Long-term debt, net of current portion $ 1,189,415 $ 1,273,699 $ 1,189,717 $ 1,270,521 |
Net positions of foreign contracts | The net positions of these contracts at March 31, 2019 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 12,928,059 Mexican peso purchase 341,547 Polish zloty purchase 50,222 Canadian dollar purchase 46,690 Czech koruna purchase 34,652 Turkish lira purchase 4,917 British pound purchase 1,133 Swedish krona sell (2,180) Euro sell (13,542) Russian ruble sell (83,981) |
Net positions of other derivatives contracts | The net positions of these contracts at March 31, 2019, were as follows (in thousands): Currency Action Quantity Colombian peso purchase 9,199,944 Mexican peso purchase 420,776 Canadian dollar purchase 21,475 South African rand sell (8,261) |
Location and fair values of derivative instruments | The following table sets forth the location and fair values of the Company’s derivative instruments at March 31, 2019 and December 31, 2018: Description Balance Sheet Location March 31, 2019 December 31, 2018 Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ 144 $ 282 Commodity Contracts Other assets $ 95 $ — Commodity Contracts Accrued expenses and other $ (1,153) $ (1,843) Commodity Contracts Other liabilities $ — $ (10) Foreign Exchange Contracts Prepaid expenses $ 1,119 $ 770 Foreign Exchange Contracts Accrued expenses and other $ (1,021) $ (2,482) Derivatives not designated as hedging instruments: Foreign Exchange Contracts Prepaid expenses $ — $ 727 Foreign Exchange Contracts Accrued expenses and other $ (164) $ (561) |
Effect of derivative instruments on financial performance | The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three months ended March 31, 2019 and April 1, 2018: Description Amount of Gain or Location of Gain Amount of Gain or Derivatives in Cash Flow Hedging Relationships: Three months ended March 31, 2019 Foreign Exchange Contracts $ 1,930 Net sales $ 317 Cost of sales $ (288) Commodity Contracts $ 1,092 Cost of sales $ 435 Three months ended April 1, 2018 Foreign Exchange Contracts $ 1,646 Net sales $ 810 Cost of sales $ (527) Commodity Contracts $ (171) Cost of sales $ (58) Description Gain or (Loss) Location of Gain or (Loss) Recognized in Derivatives not Designated as Hedging Instruments: Three months ended March 31, 2019 Foreign Exchange Contracts $ — Cost of sales $ (1,465) Selling, general and administrative Three months ended April 1, 2018 Foreign Exchange Contracts $ — Cost of sales $ 754 Selling, general and administrative |
Effect of derivative instruments on income and expense line items in consolidated statements of income and comprehensive income | Three months ended March 31, 2019 Three months ended April 1, 2018 Description Revenue Cost of Revenue Cost of Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 317 $ 147 $ 810 $ (585) 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 $ 317 $ (288) $ 810 $ (527) Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income $ — $ 435 $ — $ (58) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (914) $ — $ — $ (914) $ — Foreign exchange contracts $ 155 $ — $ — $ 155 $ — Non-hedge derivatives, net: Foreign exchange contracts $ (164) $ — $ — $ (164) $ — Deferred compensation plan assets $ 286 $ — $ 286 $ — $ — Description December 31, 2018 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (1,571) $ — $ — $ (1,571) $ — Foreign exchange contracts $ (1,712) $ — $ — $ (1,712) $ — Non-hedge derivatives, net: Foreign exchange contracts $ 166 $ — $ — $ 166 $ — Deferred compensation plan assets $ 260 $ — $ 260 $ — $ — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost | The components of net periodic benefit cost include the following: Three Months Ended March 31, 2019 April 1, 2018 Retirement Plans Service cost $ 941 $ 4,672 Interest cost 14,943 13,978 Expected return on plan assets (19,097) (23,209) Amortization of prior service cost 214 249 Amortization of net actuarial loss 9,034 9,420 Effect of settlement loss 1,322 — Net periodic benefit cost $ 7,357 $ 5,110 Retiree Health and Life Insurance Plans Service cost $ 74 $ 79 Interest cost 118 111 Expected return on plan assets (177) (472) Amortization of prior service credit (123) (126) Amortization of net actuarial gain (193) (242) Net periodic benefit income $ (301) $ (650) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Balance sheet location and values of Company's lease assets and lease liabilities | The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at March 31, 2019: Classification Balance Sheet Location March 31, 2019 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 308,166 Finance lease assets Other Assets 22,122 Total lease assets 330,288 Lease Liabilities Current operating lease liabilities Accrued expenses and other 54,979 Current finance lease liabilities Notes payable and current portion of debt 9,684 Total current lease liabilities 64,663 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities 262,663 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 11,472 Total noncurrent lease liabilities 274,135 Total lease liabilities $ 338,798 |
Components of Company's total lease costs and other lease related information | The following table sets forth the components of the Company's total lease cost for the three months ended March 31, 2019: Lease Cost Three Months Ended March 31, 2019 Operating lease cost (a) $ 15,545 Finance lease cost: Amortization of lease asset (a) (b) 2,069 Interest on lease liabilities (c) 276 Variable lease cost (a) (d) 9,178 Total lease cost $ 27,068 (a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively. (b) Included in depreciation and amortization. (c) Included in interest expense. (d) Also includes short term lease costs, which are deemed immaterial. |
Maturity schedule of Company's lease liabilities | The following table sets forth the five-year maturity schedule of the Company's lease liabilities as of March 31, 2019: Maturity of Lease Liabilities Operating Leases Finance Leases Total 2019 (excluding three months ended March 31, 2019) $ 45,175 $ 7,522 $ 52,697 2020 53,114 8,649 61,763 2021 45,288 3,132 48,420 2022 39,572 1,609 41,181 2023 36,248 969 37,217 Beyond 2023 188,226 836 189,062 Total lease payments $ 407,623 $ 22,717 $ 430,340 Less: Interest 89,981 1,561 91,542 Lease Liabilities $ 317,642 $ 21,156 $ 338,798 |
Maturity schedule of Company's lease liabilities | The following table sets forth the five-year maturity schedule of the Company's lease liabilities as of March 31, 2019: Maturity of Lease Liabilities Operating Leases Finance Leases Total 2019 (excluding three months ended March 31, 2019) $ 45,175 $ 7,522 $ 52,697 2020 53,114 8,649 61,763 2021 45,288 3,132 48,420 2022 39,572 1,609 41,181 2023 36,248 969 37,217 Beyond 2023 188,226 836 189,062 Total lease payments $ 407,623 $ 22,717 $ 430,340 Less: Interest 89,981 1,561 91,542 Lease Liabilities $ 317,642 $ 21,156 $ 338,798 |
Schedule of Future Minimum Rental Payments under Noncancellable Operating Leases | As presented in our 2018 Form 10-K (under ASC 840), the future minimum rentals under noncancellable operating leases with terms of more than one year, payable over the remaining lives of the leases at December 31, 2018, were as follows: Period Minimum Future Rental Commitments 2019 $ 48,200 2020 41,700 2021 32,500 2022 27,300 2023 21,400 Beyond 2023 92,300 |
Schedule of Weighted Average Remaining Lease Terms, Discounts Rates and Other Lease Information | The following tables set forth the Company's weighted average remaining lease term and discount rates used in the calculation of its outstanding lease liabilities March 31, 2019, along with other lease-related information for the three months ended March 31, 2019: Lease Term and Discount Rate As of March 31, 2019 Weighted-average remaining lease term (years): Operating leases 11.4 Finance leases 3.0 Weighted-average discount rate: Operating leases 4.96% Finance leases 5.10% Other Information Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 15,246 Operating cash flows used by finance leases $ 276 Financing cash flows used by finance leases $ 2,281 Leased assets obtained in exchange for new operating lease liabilities $ 661 Leased assets obtained in exchange for new finance lease liabilities $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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. March 31, 2019 December 31, 2018 Contract Assets $ 51,332 $ 48,786 Contract Liabilities $ (14,757) $ (18,533) Significant changes in the contract assets and liabilities balances during the period were as follows: March 31, 2019 December 31, 2018 Contract Contract Contract Contract Beginning Balance $ 48,786 $ (18,533) $ 45,877 $ (17,736) Revenue deferred or rebates accrued — (6,928) — (19,730) Recognized as revenue 2,098 1,652 Rebates paid to customers — 8,606 — 17,281 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 51,332 — 48,786 — Transferred to receivables from contract assets recognized at the beginning of the period (48,786) — (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 — — — — Impairment of contract asset — — — — Ending Balance $ 51,332 $ (14,757) $ 48,786 $ (18,533) |
Disaggregation of revenue | The following tables set forth information about revenue disaggregated by primary geographic regions, and timing of revenue recognition for the three-month periods ended March 31, 2019 and April 1, 2018. The tables also include a reconciliation of disaggregated revenue with reportable segments. Three months ended March 31, 2019 Consumer Display and Paper and Protective Primary Geographical Markets: United States $ 416,397 $ 65,563 $ 268,566 $ 101,178 Europe 108,213 70,242 90,705 5,867 Canada 27,301 — 32,833 — Asia 15,913 — 69,060 920 Other 21,892 1,749 34,873 20,433 Total $ 589,716 $ 137,554 $ 496,037 $ 128,398 Timing of Revenue Recognition: Products transferred at a point in time $ 339,462 $ 57,410 $ 479,480 $ 107,897 Products transferred over time 250,254 80,144 16,557 20,501 Total $ 589,716 $ 137,554 $ 496,037 $ 128,398 Three months ended April 1, 2018 Consumer Packaging Display and Paper and Protective Primary Geographical Markets: United States $ 397,986 $ 73,884 $ 265,762 $ 110,500 Europe 107,230 65,945 92,855 6,789 Canada 27,706 — 32,873 — Asia 16,490 — 35,309 988 Other 20,440 2,829 33,854 12,747 Total $ 569,852 $ 142,658 $ 460,653 $ 131,024 Timing of Revenue Recognition: Products transferred at a point in time $ 345,003 $ 64,715 $ 440,477 $ 111,798 Products transferred over time 224,849 77,943 20,176 19,226 Total $ 569,852 $ 142,658 $ 460,653 $ 131,024 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment financial information | SEGMENT FINANCIAL INFORMATION Three Months Ended March 31, 2019 April 1, 2018 Net sales: Consumer Packaging $ 589,716 $ 569,852 Display and Packaging 137,554 142,658 Paper and Industrial Converted Products 496,037 460,653 Protective Solutions 128,398 131,024 Consolidated $ 1,351,705 $ 1,304,187 Intersegment sales: Consumer Packaging $ 921 $ 739 Display and Packaging 1,167 538 Paper and Industrial Converted Products 33,654 34,543 Protective Solutions 462 573 Consolidated $ 36,204 $ 36,393 Operating profit: Segment operating profit: Consumer Packaging $ 62,115 $ 61,088 Display and Packaging 6,454 1,732 Paper and Industrial Converted 48,387 39,781 Protective Solutions 11,004 10,680 Restructuring/Asset impairment charges (10,672) (3,063) Other, net (400) (120) Consolidated $ 116,888 $ 110,098 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 308,166 | ||
Lease Liabilities | $ 317,642 | ||
Impact of new accounting pronouncements | $ (6,771) | $ 1,721 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | 336,083 | ||
Lease Liabilities | 344,362 | ||
Reduction to deferred tax liabilities | 1,508 | ||
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact of new accounting pronouncements | (6,771) | $ 1,897 | |
Retained Earnings | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact of new accounting pronouncements | $ (6,771) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | Apr. 12, 2020 | Apr. 12, 2019 | Apr. 12, 2018 | Feb. 28, 2019 | Mar. 31, 2019 | Apr. 01, 2018 | Oct. 01, 2018 |
Business Acquisition [Line Items] | |||||||
Acquisition related costs | $ 400 | $ 545 | |||||
Conitex Sonoco Holding Bvi Ltd | |||||||
Business Acquisition [Line Items] | |||||||
Additional interest acquired | 70.00% | ||||||
Conitex Sonoco and Compositub | |||||||
Business Acquisition [Line Items] | |||||||
Payment for contingent consideration | $ 455 | ||||||
Highland | |||||||
Business Acquisition [Line Items] | |||||||
Contingent purchase liability | $ 7,500 | ||||||
Forecast | Highland | |||||||
Business Acquisition [Line Items] | |||||||
Payment for contingent consideration | $ 2,500 | $ 5,000 |
Acquisitions - Schedule of Meas
Acquisitions - Schedule of Measurement Period Adjustments (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Conitex Sonoco | |
Business Acquisition [Line Items] | |
Trade accounts receivable | $ (77) |
Inventories | 0 |
Property, plant and equipment | (199) |
Goodwill | 1,971 |
Other intangible assets | 300 |
Accrued expenses and other | 1,782 |
Other net tangible assets /(liabilities) | (129) |
Net assets | 84 |
Compositub | |
Business Acquisition [Line Items] | |
Trade accounts receivable | 203 |
Inventories | 50 |
Property, plant and equipment | (1,026) |
Goodwill | (566) |
Other intangible assets | 1,888 |
Accrued expenses and other | 138 |
Other net tangible assets /(liabilities) | (40) |
Net assets | 371 |
Highland | |
Business Acquisition [Line Items] | |
Trade accounts receivable | 0 |
Inventories | 0 |
Property, plant and equipment | 1,895 |
Goodwill | (1,895) |
Other intangible assets | 0 |
Accrued expenses and other | 0 |
Other net tangible assets /(liabilities) | 0 |
Net assets | $ 0 |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Numerator: | ||
Net income attributable to Sonoco | $ 73,663 | $ 74,055 |
Denominator: | ||
Basic (in shares) | 100,640 | 100,396 |
Dilutive effect of stock-based compensation (in shares) | 432 | 500 |
Diluted (in shares) | 101,072 | 100,896 |
Net income attributable to Sonoco per common share: | ||
Basic (in usd per share) | $ 0.73 | $ 0.74 |
Diluted (in usd per share) | $ 0.73 | $ 0.73 |
Shareholders' Equity - Antidilu
Shareholders' Equity - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Equity [Abstract] | ||
Anti-dilutive stock appreciation rights (in shares) | 305 | 738 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 17, 2019 | Mar. 08, 2019 | Feb. 13, 2019 | Mar. 31, 2019 | Apr. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 10, 2016 |
Class of Stock [Line Items] | |||||||||
Number of shares authorized for repurchase (in shares) | 5,000,000 | ||||||||
Number of shares repurchased (in shares) | 0 | 0 | 0 | 2,030,000 | |||||
Number of shares available for repurchase (in shares) | 2,970,000 | ||||||||
Cost of shares repurchased | $ 7,395 | $ 4,088 | |||||||
Dividend declared and payable (in usd per share) | $ 0.41 | ||||||||
Dividends paid (in usd per share) | $ 0.41 | $ 0.41 | $ 0.39 | ||||||
Subsequent Event | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend declared and payable (in usd per share) | $ 0.43 | ||||||||
Tax Withholding Obligations | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares repurchased (in shares) | 133,000 | 78,000 | |||||||
Cost of shares repurchased | $ 7,395 | $ 4,088 |
Restructuring and Asset Impai_3
Restructuring and Asset Impairment - Restructuring and Asset Impairment Charges/ (Credits), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Restructuring/Asset impairment: | ||
Restructuring/Asset impairment charges | $ 10,672 | $ 3,063 |
Income tax benefit | (2,638) | (685) |
Less: Costs attributable to noncontrolling interests, net of tax | (69) | (5) |
Restructuring/asset impairment charges attributable to Sonoco, net of tax | 7,965 | 2,373 |
2019 Actions | ||
Restructuring/Asset impairment: | ||
Restructuring/Asset impairment charges | 6,389 | 0 |
2018 Actions | ||
Restructuring/Asset impairment: | ||
Restructuring/Asset impairment charges | 4,046 | 2,207 |
2017 and earlier Actions | ||
Restructuring/Asset impairment: | ||
Restructuring/Asset impairment charges | $ 237 | $ 856 |
Restructuring and Asset Impai_4
Restructuring and Asset Impairment - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)positionsfacility | Dec. 31, 2018USD ($)facilityposition | ||
Restructuring Cost and Reserve [Line Items] | |||
Expected future charges associated with previous restructuring on earnings | $ 5,100 | ||
Number of facilities closed (facility) | facility | 5 | ||
Net book value of fixed assets sold | $ 1,224,143 | $ 1,233,821 | [1],[2] |
2019 Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of eliminated positions (position) | positions | 90 | ||
Asset impairment/disposal of assets | $ 6,389 | ||
Proceeds from the sale of fixed assets and inventory | 3,377 | ||
2019 Actions | Other Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment/disposal of assets | 599 | ||
Proceeds from the sale of fixed assets and inventory | $ 212 | ||
2018 Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed (facility) | facility | 5 | ||
Number of eliminated positions (position) | position | 120 | ||
Asset impairment/disposal of assets | $ 4,046 | ||
Proceeds from the sale of fixed assets and inventory | $ 3,516 | ||
2018 Actions | Alabama | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed (facility) | facility | 1 | ||
2018 Actions | Canada | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed (facility) | facility | 1 | ||
2018 Actions | Indonesia | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed (facility) | facility | 1 | ||
2018 Actions | Russia | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed (facility) | facility | 1 | ||
2018 Actions | Norway | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed (facility) | facility | 1 | ||
2018 Actions | Sale of Fixed Assets and Inventory | Indonesia | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment/disposal of assets | $ 232 | ||
Proceeds from the sale of fixed assets and inventory | 416 | ||
Net book value of fixed assets sold | 648 | ||
Asset write off | 909 | ||
2018 Actions | Other Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment/disposal of assets | $ 1,915 | ||
Proceeds from the sale of fixed assets and inventory | 1,977 | ||
2017 and earlier Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected future charges associated with previous restructuring on earnings | (100) | ||
Restructuring reserve | $ 1,653 | $ 4,199 | |
[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. | ||
[2] | 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. |
Restructuring and Asset Impai_5
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 | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | $ 10,672 | $ 3,063 |
2019 Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 6,389 | 0 |
Estimated Total Cost | 10,289 | |
2018 Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 4,046 | 2,207 |
Total Incurred to Date | 36,339 | |
Estimated Total Cost | 37,439 | |
2018 Actions | Asset Impairment / Disposal of Assets | Protective Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 0 | 0 |
Total Incurred to Date | (243) | |
Estimated Total Cost | (243) | |
2017 and earlier Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 237 | 856 |
Operating Segments | 2019 Actions | Severance and Termination Benefits | Consumer Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 2,989 | |
Estimated Total Cost | 6,639 | |
Operating Segments | 2019 Actions | Severance and Termination Benefits | Paper and Industrial Converted Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 422 | |
Estimated Total Cost | 422 | |
Operating Segments | 2019 Actions | Severance and Termination Benefits | Protective Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 341 | |
Estimated Total Cost | 341 | |
Operating Segments | 2019 Actions | Asset Impairment / Disposal of Assets | Consumer Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 312 | |
Estimated Total Cost | 312 | |
Operating Segments | 2019 Actions | Other Costs | Consumer Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 442 | |
Estimated Total Cost | 442 | |
Operating Segments | 2019 Actions | Other Costs | Display and Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 155 | |
Estimated Total Cost | 255 | |
Operating Segments | 2019 Actions | Other Costs | Paper and Industrial Converted Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 2 | |
Estimated Total Cost | 2 | |
Operating Segments | 2018 Actions | Severance and Termination Benefits | Consumer Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 641 | 788 |
Total Incurred to Date | 5,341 | |
Estimated Total Cost | 5,341 | |
Operating Segments | 2018 Actions | Severance and Termination Benefits | Display and Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 2 | 175 |
Total Incurred to Date | 1,941 | |
Estimated Total Cost | 1,941 | |
Operating Segments | 2018 Actions | Severance and Termination Benefits | Paper and Industrial Converted Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 169 | 991 |
Total Incurred to Date | 3,280 | |
Estimated Total Cost | 3,280 | |
Operating Segments | 2018 Actions | Severance and Termination Benefits | Protective Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | (1) | 259 |
Total Incurred to Date | 1,074 | |
Estimated Total Cost | 1,074 | |
Operating Segments | 2018 Actions | Asset Impairment / Disposal of Assets | Consumer Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 1,007 | (14) |
Total Incurred to Date | 3,695 | |
Estimated Total Cost | 3,695 | |
Operating Segments | 2018 Actions | Asset Impairment / Disposal of Assets | Display and Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 87 | (272) |
Total Incurred to Date | 4,712 | |
Estimated Total Cost | 4,712 | |
Operating Segments | 2018 Actions | Asset Impairment / Disposal of Assets | Paper and Industrial Converted Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 226 | 0 |
Total Incurred to Date | 344 | |
Estimated Total Cost | 344 | |
Operating Segments | 2018 Actions | Other Costs | Consumer Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 1,809 | 11 |
Total Incurred to Date | 4,199 | |
Estimated Total Cost | 5,049 | |
Operating Segments | 2018 Actions | Other Costs | Display and Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 48 | 0 |
Total Incurred to Date | 9,898 | |
Estimated Total Cost | 10,048 | |
Operating Segments | 2018 Actions | Other Costs | Paper and Industrial Converted Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 40 | 0 |
Total Incurred to Date | 1,801 | |
Estimated Total Cost | 1,901 | |
Operating Segments | 2018 Actions | Other Costs | Protective Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 18 | 46 |
Total Incurred to Date | 64 | |
Estimated Total Cost | 64 | |
Operating Segments | 2017 and earlier Actions | Consumer Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 55 | 944 |
Operating Segments | 2017 and earlier Actions | Display and Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 83 | (189) |
Operating Segments | 2017 and earlier Actions | Paper and Industrial Converted Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 15 | (144) |
Operating Segments | 2017 and earlier Actions | Protective Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 84 | 245 |
Corporate | 2019 Actions | Severance and Termination Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 1,726 | |
Estimated Total Cost | 1,876 | |
Corporate | 2018 Actions | Severance and Termination Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 0 | 223 |
Total Incurred to Date | 243 | |
Estimated Total Cost | 243 | |
Corporate | 2018 Actions | Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/asset impairment charges | 0 | $ 0 |
Total Incurred to Date | (10) | |
Estimated Total Cost | $ (10) |
Restructuring and Asset Impai_6
Restructuring and Asset Impairment - Restructuring Accrual Activity for Given Years (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
2019 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | $ 0 |
Current year charges | 6,389 |
Cash receipts/(payments) | (3,377) |
Asset write downs/disposals | (312) |
Foreign currency translation | (1) |
Liability, ending balance | 2,699 |
2018 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | 3,373 |
Current year charges | 4,046 |
Cash receipts/(payments) | (3,516) |
Asset write downs/disposals | (1,742) |
Foreign currency translation | 4 |
Liability, ending balance | 2,165 |
Severance and Termination Benefits | 2019 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | 0 |
Current year charges | 5,478 |
Cash receipts/(payments) | (3,165) |
Asset write downs/disposals | 0 |
Foreign currency translation | (1) |
Liability, ending balance | 2,312 |
Severance and Termination Benefits | 2018 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | 3,194 |
Current year charges | 811 |
Cash receipts/(payments) | (1,961) |
Asset write downs/disposals | 0 |
Foreign currency translation | 1 |
Liability, ending balance | 2,045 |
Asset Impairment / Disposal of Assets | 2019 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | 0 |
Current year charges | 312 |
Cash receipts/(payments) | 0 |
Asset write downs/disposals | (312) |
Foreign currency translation | 0 |
Liability, ending balance | 0 |
Asset Impairment / Disposal of Assets | 2018 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | 0 |
Current year charges | 1,320 |
Cash receipts/(payments) | 422 |
Asset write downs/disposals | (1,742) |
Foreign currency translation | 0 |
Liability, ending balance | 0 |
Other Costs | 2019 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | 0 |
Current year charges | 599 |
Cash receipts/(payments) | (212) |
Asset write downs/disposals | 0 |
Foreign currency translation | 0 |
Liability, ending balance | 387 |
Other Costs | 2018 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, beginning balance | 179 |
Current year charges | 1,915 |
Cash receipts/(payments) | (1,977) |
Asset write downs/disposals | 0 |
Foreign currency translation | 3 |
Liability, ending balance | $ 120 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019 | Apr. 01, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | $ 1,772,278 | [1] | $ 1,730,060 | ||
Other comprehensive income/(loss) | 6,048 | 29,846 | |||
Amounts reclassified from retained earnings to accumulated other comprehensive loss | $ (6,771) | $ 1,721 | |||
Ending Balance | 1,801,139 | 1,796,456 | |||
Foreign Currency Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (251,102) | (198,495) | |||
Other comprehensive income/(loss) before reclassifications | (2,852) | 22,553 | |||
Other comprehensive income/(loss) | (2,852) | 22,553 | |||
Ending Balance | (253,954) | (175,942) | |||
Defined Benefit Pension Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (487,380) | (467,136) | |||
Other comprehensive income/(loss) before reclassifications | (508) | (1,145) | |||
Other comprehensive income/(loss) | 7,156 | 5,817 | |||
Ending Balance | (480,224) | (461,319) | |||
Defined Benefit Pension Items | Net Income | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 7,664 | 6,962 | |||
Gains and Losses on Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (2,431) | (641) | |||
Other comprehensive income/(loss) before reclassifications | 2,256 | 1,182 | |||
Other comprehensive income/(loss) | 1,864 | 1,047 | |||
Amounts reclassified from retained earnings to accumulated other comprehensive loss | (176) | ||||
Ending Balance | (567) | 230 | |||
Gains and Losses on Cash Flow Hedges | Fixed Assets | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | (45) | (45) | |||
Gains and Losses on Cash Flow Hedges | Net Income | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | (347) | (180) | |||
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (740,913) | (666,272) | |||
Other comprehensive income/(loss) before reclassifications | (1,104) | 22,590 | |||
Other comprehensive income/(loss) | 6,168 | 29,417 | |||
Amounts reclassified from retained earnings to accumulated other comprehensive loss | $ (176) | ||||
Ending Balance | (734,745) | (637,031) | |||
Accumulated Other Comprehensive Loss | Fixed Assets | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | (45) | (45) | |||
Accumulated Other Comprehensive Loss | Net Income | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | $ 7,317 | $ 6,782 | |||
[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 Comprehensi_4
Accumulated Other Comprehensive Loss - Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | $ 1,351,705 | $ 1,304,187 |
Cost of sales | (1,081,584) | (1,053,585) |
Income before income taxes | 95,462 | 97,034 |
Provision for income taxes | (22,624) | (23,356) |
Net income | 73,768 | 74,925 |
Effect of settlement loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-operating pension costs | (1,322) | |
Amortization of defined benefit pension items | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-operating pension costs | (8,932) | |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | 317 | 810 |
Cost of sales | 147 | (585) |
Net income | (7,317) | (6,782) |
Reclassification out of Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | 464 | 225 |
Provision for income taxes | (117) | (45) |
Net income | 347 | 180 |
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 | (10,254) | (9,301) |
Provision for income taxes | 2,590 | 2,339 |
Net income | (7,664) | (6,962) |
Reclassification out of Accumulated Other Comprehensive Income | Effect of settlement loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-operating pension costs | 0 | |
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 | (9,301) | |
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 | 317 | 810 |
Cost of sales | (288) | (527) |
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 |
Cost of sales | $ 435 | $ (58) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Before and After Tax Amounts for Comprehensive Income (Loss) Components (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income/(loss) | $ 6,048 | $ 29,846 |
Foreign Currency Items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income/(loss) before tax | (2,852) | 22,553 |
Other comprehensive income/(loss), tax | 0 | |
Other comprehensive income/(loss) | (2,852) | 22,553 |
Defined benefit pension items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income/(loss) before reclassifications before tax | (681) | (1,145) |
Other comprehensive income/(loss) before reclassifications, tax | 173 | 0 |
Other comprehensive income/(loss) before reclassifications, net of tax | (508) | (1,145) |
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 10,254 | 9,301 |
Amounts reclassified from accumulated other comprehensive income/(loss), tax | (2,590) | (2,339) |
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 7,664 | 6,962 |
Other comprehensive income/(loss) before tax | 9,573 | 8,156 |
Other comprehensive income/(loss), tax | (2,417) | (2,339) |
Other comprehensive income/(loss) | 7,156 | 5,817 |
Gains and Losses on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income/(loss) before reclassifications before tax | 3,022 | 1,475 |
Other comprehensive income/(loss) before reclassifications, tax | (766) | (293) |
Other comprehensive income/(loss) before reclassifications, net of tax | 2,256 | 1,182 |
Other comprehensive income/(loss) before tax | 2,513 | 1,295 |
Other comprehensive income/(loss), tax | (649) | (248) |
Other comprehensive income/(loss) | 1,864 | 1,047 |
Gains and Losses on Cash Flow Hedges | Fixed Assets | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | (45) | 45 |
Amounts reclassified from accumulated other comprehensive income/(loss), tax | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | (45) | 45 |
Gains and Losses on Cash Flow Hedges | Net Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | (464) | (225) |
Amounts reclassified from accumulated other comprehensive income/(loss), tax | 117 | 45 |
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | (347) | (180) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income/(loss) before tax | 9,234 | 32,004 |
Other comprehensive income/(loss), tax | (3,066) | (2,587) |
Other comprehensive income/(loss) | $ 6,168 | $ 29,417 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Goodwill by Segment (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,309,167 | [1] |
Foreign currency translation | (1,511) | |
Other | (490) | |
Goodwill, ending balance | 1,307,166 | |
Consumer Packaging | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 617,332 | |
Foreign currency translation | (690) | |
Other | (2,461) | |
Goodwill, ending balance | 614,181 | |
Display and Packaging | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 203,414 | |
Foreign currency translation | 0 | |
Other | 0 | |
Goodwill, ending balance | 203,414 | |
Paper and Industrial Converted Products | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 256,947 | |
Foreign currency translation | (929) | |
Other | 1,971 | |
Goodwill, ending balance | 257,989 | |
Protective Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 231,474 | |
Foreign currency translation | 108 | |
Other | 0 | |
Goodwill, ending balance | $ 231,582 | |
[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 Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2019 | Sep. 30, 2018 | Apr. 01, 2018 | Dec. 31, 2018 | [1] | |
Goodwill [Line Items] | |||||
Goodwill | $ 1,307,166,000 | $ 1,309,167,000 | |||
Goodwill, impairment loss | $ 0 | ||||
Indefinite-lived intangible assets | 0 | ||||
Aggregate amortization expense | 12,792,000 | $ 10,202,000 | |||
Amortization expense on other intangible assets in 2018 | 50,000,000 | ||||
Amortization expense on other intangible assets in 2019 | 47,600,000 | ||||
Amortization expense on other intangible assets in 2020 | 45,600,000 | ||||
Amortization expense on other intangible assets in 2021 | 43,200,000 | ||||
Amortization expense on other intangible assets in 2022 | $ 38,400,000 | ||||
Minimum | |||||
Goodwill [Line Items] | |||||
Useful lives of other intangible assets | 3 years | ||||
Maximum | |||||
Goodwill [Line Items] | |||||
Useful lives of other intangible assets | 40 years | ||||
Display and Packaging Reporting Unit | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 203,414,000 | ||||
Highland | |||||
Goodwill [Line Items] | |||||
Increase (decrease) to goodwill | (1,895,000) | ||||
Increases to other intangible assets | $ 0 | ||||
[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 Intangible_5
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | $ 632,692 | $ 632,844 | |
Total Accumulated Amortization | (291,848) | (280,807) | |
Other Intangible Assets, net | 340,844 | 352,037 | [1],[2] |
Patents | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 22,496 | 22,509 | |
Total Accumulated Amortization | (10,021) | (9,539) | |
Customer lists | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 548,443 | 548,038 | |
Total Accumulated Amortization | (256,696) | (246,946) | |
Trade names | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 31,010 | 31,174 | |
Total Accumulated Amortization | (7,773) | (7,413) | |
Proprietary technology | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 28,333 | 28,748 | |
Total Accumulated Amortization | (15,818) | (15,400) | |
Land use rights | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 286 | 282 | |
Total Accumulated Amortization | (49) | (48) | |
Other | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 2,124 | 2,093 | |
Total Accumulated Amortization | $ (1,491) | $ (1,461) | |
[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. | ||
[2] | 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 Der_3
Financial Instruments and Derivatives - Carrying Amount and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net of current portion, fair value | $ 1,189,415 | $ 1,189,717 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net of current portion, fair value | $ 1,273,699 | $ 1,270,521 |
Financial Instruments and Der_4
Financial Instruments and Derivatives - Additional Information (Details) $ in Thousands, MMBTU in Millions | 3 Months Ended | ||||
Mar. 31, 2019USD ($)MMBTUT | Apr. 01, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2018USD ($) | |
Derivative [Line Items] | |||||
Impact of new accounting pronouncements | $ (6,771) | $ 1,721 | |||
Fair value of commodity cash flow hedges, gain (loss) | $ (914) | $ (1,571) | |||
Commodity gain (loss) expected to be reclassified to the income statement during the next 12 months | (918) | ||||
Fair value of foreign currency cash flow hedges, gain (loss) | 155 | (1,624) | |||
Foreign currency gain (loss) expected to be reclassified to the income statement during the next 12 months | 155 | ||||
Total fair value of other derivatives not designated as hedging instruments | $ (164) | 166 | |||
Natural Gas Swaps | |||||
Derivative [Line Items] | |||||
Approximate amount of commodity covered by swap contracts outstanding (in MMBTUs) | MMBTU | 6 | ||||
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 | 42.00% | ||||
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 | 3,062 | ||||
Foreign Exchange Forward For Construction In Progress | |||||
Derivative [Line Items] | |||||
Net position of contracts | $ (57) | $ (88) | |||
Retained Earnings | |||||
Derivative [Line Items] | |||||
Impact of new accounting pronouncements | $ (6,771) | 1,897 | |||
Accumulated Other Comprehensive Loss | |||||
Derivative [Line Items] | |||||
Impact of new accounting pronouncements | $ (176) | ||||
Accumulated Other Comprehensive Loss | Fixed Assets | |||||
Derivative [Line Items] | |||||
Amounts reclassified from accumulated other comprehensive loss | $ (45) | $ (45) |
Financial Instruments and Der_5
Financial Instruments and Derivatives - Net Positions of Foreign Contracts (Details) - Mar. 31, 2019 - Cash Flow Hedging ₽ in Thousands, ₺ in Thousands, € in Thousands, £ in Thousands, zł in Thousands, kr in Thousands, Kč in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | GBP (£) | SEK (kr) | COP ($) | CZK (Kč) | MXN ($) | CAD ($) | TRY (₺) | EUR (€) | PLN (zł) | RUB (₽) |
purchase | ||||||||||
Derivative [Line Items] | ||||||||||
Net position, purchase (sell) | £ 1,133 | $ 12,928,059 | Kč 34,652 | $ 341,547 | $ 46,690 | ₺ 4,917 | zł 50,222 | |||
sell | ||||||||||
Derivative [Line Items] | ||||||||||
Net position, purchase (sell) | kr 2,180 | € 13,542 | ₽ 83,981 |
Financial Instruments and Der_6
Financial Instruments and Derivatives - Net Positions of Other Derivatives Contract (Details) - Mar. 31, 2019 - Derivatives Not Designated as Hedging Instruments R in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | COP ($) | MXN ($) | CAD ($) | ZAR (R) |
purchase | ||||
Derivative [Line Items] | ||||
Net position | $ 9,199,944 | $ 420,776 | $ 21,475 | |
sell | ||||
Derivative [Line Items] | ||||
Net position | R 8,261 |
Financial Instruments and Der_7
Financial Instruments and Derivatives - Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 144 | $ 282 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 95 | 0 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (1,153) | (1,843) |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0 | (10) |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1,119 | 770 |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (1,021) | (2,482) |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 727 |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ (164) | $ (561) |
Financial Instruments and Der_8
Financial Instruments and Derivatives - Effect of Derivative Instruments on Financial Performance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | $ 1,930 | $ 1,646 |
Foreign exchange contracts | Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | 317 | 810 |
Foreign exchange contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | (288) | (527) |
Foreign exchange contracts | Cost of sales | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized | 0 | 0 |
Foreign exchange contracts | Selling, general and administrative | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized | (1,465) | 754 |
Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | 1,092 | (171) |
Commodity contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | $ 435 | $ (58) |
Financial Instruments and Der_9
Financial Instruments and Derivatives - Reclassification of Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | $ 1,351,705 | $ 1,304,187 |
Cost of sales | (1,081,584) | (1,053,585) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | 317 | 810 |
Cost of sales | 147 | (585) |
Gains and Losses on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | Foreign exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | 317 | 810 |
Cost of sales | (288) | (527) |
Gains and Losses on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | Commodity contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | 0 | 0 |
Cost of sales | $ 435 | $ (58) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Deferred compensation plan assets | $ 286 | $ 260 | ||
Derivatives Designated as Hedging Instruments | Commodity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives | $ (914) | $ (1,571) | ||
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives | 155 | (1,712) | ||
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives | (164) | 166 | ||
Assets measured at NAV | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Deferred compensation plan assets | 0 | 0 | ||
Assets measured at NAV | Derivatives Designated as Hedging Instruments | Commodity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives | 0 | 0 | ||
Assets measured at NAV | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives | 0 | 0 | ||
Assets measured at NAV | 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 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Deferred compensation plan assets | 286 | 260 | ||
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 | (914) | (1,571) | ||
Level 2 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives | 155 | (1,712) | ||
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 | (164) | 166 | ||
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 | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions | $ 2,780,000 | $ 4,573,000 |
Expected contributions for remainder of fiscal year | 13,500,000 | |
Settlement losses recognized | 1,322,000 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement losses recognized | 1,322,000 | 0 |
Pension Plan | Sonoco Retirement Contribution | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions | 14,573,000 | 14,151,000 |
Expected contributions for remainder of fiscal year | 0 | |
Recognized expense related to the plan | $ 6,267,000 | $ 4,032,000 |
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 | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Effect of settlement loss | $ 1,322 | |
Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 941 | $ 4,672 |
Interest cost | 14,943 | 13,978 |
Expected return on plan assets | (19,097) | (23,209) |
Amortization of prior service cost | 214 | 249 |
Amortization of net actuarial loss | 9,034 | 9,420 |
Effect of settlement loss | 1,322 | 0 |
Net periodic benefit cost (income) | 7,357 | 5,110 |
Retiree Health and Life Insurance Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 74 | 79 |
Interest cost | 118 | 111 |
Expected return on plan assets | (177) | (472) |
Amortization of prior service cost | (123) | (126) |
Amortization of net actuarial loss | (193) | (242) |
Net periodic benefit cost (income) | $ (301) | $ (650) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Thousands | Nov. 20, 2017USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2019USD ($) | Apr. 01, 2018 | Nov. 14, 2017notice_of_proposed_adjustment | Oct. 05, 2017notice_of_proposed_adjustment |
Income Tax Contingency [Line Items] | ||||||
Effective tax rate | 23.70% | 24.10% | ||||
Decrease in unrecognized tax benefits | $ 100 | |||||
Decrease in unrecognized tax benefits that are reasonably possible | $ (2,500) | |||||
Number of draft notice of proposed adjustments, revised (notice of proposed adjustment) | notice_of_proposed_adjustment | 2 | |||||
Number of notice of proposed adjustments (notice of proposed adjustment) | notice_of_proposed_adjustment | 2 | |||||
Internal Revenue Service (IRS) | ||||||
Income Tax Contingency [Line Items] | ||||||
Penalties expense | $ 18,000 | |||||
Tax examination, possible loss | $ 89,000 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Payments expected to be made on leases not yet commenced | $ 1,789 | |
Rent expense under operating leases | $ 18,901 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal terms | 1 year | |
Contract terms for leases not yet commenced | 3 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal terms | 50 years | |
Contract terms for leases not yet commenced | 6 years 4 months 24 days |
Leases - Balance Sheet Location
Leases - Balance Sheet Location and Values of Lease Assets and Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease assets | $ 308,166 |
Finance lease assets | 22,122 |
Total lease assets | 330,288 |
Current operating lease liabilities | 54,979 |
Current finance lease liabilities | 9,684 |
Total current lease liabilities | 64,663 |
Noncurrent operating lease liabilities | 262,663 |
Noncurrent finance lease liabilities | 11,472 |
Total noncurrent lease liabilities | 274,135 |
Total lease liabilities | $ 338,798 |
Leases - Components of Company'
Leases - Components of Company's Lease Costs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 15,545 |
Amortization of lease asset | 2,069 |
Interest on lease liabilities | 276 |
Variable lease cost | 9,178 |
Total lease cost | $ 27,068 |
Leases - Maturity Schedule of C
Leases - Maturity Schedule of Company's Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases | |
2019 (excluding three months ended March 31, 2019) | $ 45,175 |
2020 | 53,114 |
2021 | 45,288 |
2022 | 39,572 |
2023 | 36,248 |
Beyond 2023 | 188,226 |
Total lease payments | 407,623 |
Less: Interest | 89,981 |
Lease Liabilities | 317,642 |
Finance Leases | |
2019 (excluding three months ended March 31, 2019) | 7,522 |
2020 | 8,649 |
2021 | 3,132 |
2022 | 1,609 |
2023 | 969 |
Beyond 2023 | 836 |
Total lease payments | 22,717 |
Less: Interest | 1,561 |
Lease Liabilities | 21,156 |
Total | |
2019 (excluding three months ended March 31, 2019) | 52,697 |
2020 | 61,763 |
2021 | 48,420 |
2022 | 41,181 |
2023 | 37,217 |
Beyond 2023 | 189,062 |
Total lease payments | 430,340 |
Less: Interest | 91,542 |
Lease Liabilities | $ 338,798 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments under Noncancellable Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 48,200 |
2020 | 41,700 |
2021 | 32,500 |
2022 | 27,300 |
2023 | 21,400 |
Beyond 2023 | $ 92,300 |
Leases - Other Lease Related In
Leases - Other Lease Related Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Weighted average remaining lease term (years) - operating leases | 11 years 4 months 24 days |
Weighted average remaining lease term (years) - finance leases | 3 years |
Weighted average discount rate - operating leases (percent) | 4.96% |
Weighted average discount rate - finance leases (percent) | 5.10% |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows used by operating leases | $ 15,246 |
Operating cash flows used by finance leases | 276 |
Financing cash flows used by finance leases | 2,281 |
Leased assets obtained in exchange for new operating lease liabilities | 661 |
Leased assets obtained in exchange for new finance lease liabilities | $ 0 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Payment terms | 120 days |
Revenue Recognition - Receivabl
Revenue Recognition - Receivables, Contract Assets and Liabilities from Contracts with Customer (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | ||||
Contract Assets | $ 51,332 | $ 48,786 | $ 48,786 | $ 45,877 |
Contract Liabilities | $ (14,757) | $ (18,533) | $ (18,533) | $ (17,736) |
Revenue Recognition - Significa
Revenue Recognition - Significant Changes in the Contract Assets and Liabilities Balances (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Contract Asset | ||
Beginning Balance | $ 48,786,000 | $ 45,877,000 |
Increases due to rights to consideration for customer specific goods produced, but not billed during the period | 51,332,000 | 48,786,000 |
Transferred to receivables from contract assets recognized at the beginning of the period | (48,786,000) | (45,877,000) |
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 | 0 |
Impairment of contract asset | 0 | 0 |
Ending Balance | 51,332,000 | 48,786,000 |
Contract Liability | ||
Beginning Balance | (18,533,000) | (17,736,000) |
Revenue deferred or rebates accrued | (6,928,000) | (19,730,000) |
Recognized as revenue | 2,098,000 | 1,652,000 |
Rebates paid to customers | 8,606,000 | 17,281,000 |
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 | 0 |
Ending Balance | $ (14,757,000) | $ (18,533,000) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,351,705 | $ 1,304,187 |
Consumer Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 589,716 | 569,852 |
Consumer Packaging | Products transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 339,462 | 345,003 |
Consumer Packaging | Products transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 250,254 | 224,849 |
Consumer Packaging | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 416,397 | 397,986 |
Consumer Packaging | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 108,213 | 107,230 |
Consumer Packaging | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 27,301 | 27,706 |
Consumer Packaging | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 15,913 | 16,490 |
Consumer Packaging | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 21,892 | 20,440 |
Display and Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 137,554 | 142,658 |
Display and Packaging | Products transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 57,410 | 64,715 |
Display and Packaging | Products transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 80,144 | 77,943 |
Display and Packaging | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 65,563 | 73,884 |
Display and Packaging | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 70,242 | 65,945 |
Display and Packaging | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Display and Packaging | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Display and Packaging | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,749 | 2,829 |
Paper and Industrial Converted Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 496,037 | 460,653 |
Paper and Industrial Converted Products | Products transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 479,480 | 440,477 |
Paper and Industrial Converted Products | Products transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 16,557 | 20,176 |
Paper and Industrial Converted Products | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 268,566 | 265,762 |
Paper and Industrial Converted Products | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 90,705 | 92,855 |
Paper and Industrial Converted Products | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 32,833 | 32,873 |
Paper and Industrial Converted Products | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 69,060 | 35,309 |
Paper and Industrial Converted Products | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 34,873 | 33,854 |
Protective Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 128,398 | 131,024 |
Protective Solutions | Products transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 107,897 | 111,798 |
Protective Solutions | Products transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 20,501 | 19,226 |
Protective Solutions | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 101,178 | 110,500 |
Protective Solutions | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,867 | 6,789 |
Protective Solutions | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Protective Solutions | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 920 | 988 |
Protective Solutions | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 20,433 | $ 12,747 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (segment) | 4 |
Segment Reporting - Segment Fin
Segment Reporting - Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,351,705 | $ 1,304,187 |
Operating profit | 116,888 | 110,098 |
Restructuring/Asset impairment charges | (10,672) | (3,063) |
Consumer Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 589,716 | 569,852 |
Display and Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 137,554 | 142,658 |
Paper and Industrial Converted Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 496,037 | 460,653 |
Protective Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 128,398 | 131,024 |
Operating Segments | Consumer Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 589,716 | 569,852 |
Operating profit | 62,115 | 61,088 |
Operating Segments | Display and Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 137,554 | 142,658 |
Operating profit | 6,454 | 1,732 |
Operating Segments | Paper and Industrial Converted Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 496,037 | 460,653 |
Operating profit | 48,387 | 39,781 |
Operating Segments | Protective Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 128,398 | 131,024 |
Operating profit | 11,004 | 10,680 |
Intersegment Sales | ||
Segment Reporting Information [Line Items] | ||
Net sales | 36,204 | 36,393 |
Intersegment Sales | Consumer Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 921 | 739 |
Intersegment Sales | Display and Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,167 | 538 |
Intersegment Sales | Paper and Industrial Converted Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 33,654 | 34,543 |
Intersegment Sales | Protective Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 462 | 573 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Other, net | $ (400) | $ (120) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 84 Months Ended | 89 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2019 | Nov. 30, 2011 | |
Site Contingency [Line Items] | |||
Environmental accrual | $ 20,100 | $ 19,996 | |
Spartanburg, South Carolina Site | Tegrant Holding Corporation | |||
Site Contingency [Line Items] | |||
Environmental accrual | 15,964 | 15,937 | $ 17,400 |
Payment towards remediation of sites | 1,480 | ||
Increase of reserves | 17 | ||
Multiple Sites | |||
Site Contingency [Line Items] | |||
Environmental accrual | $ 4,136 | $ 4,059 |