Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-11261 | ||
Entity Registrant Name | SONOCO PRODUCTS COMPANY | ||
Entity Incorporation, State or Country Code | SC | ||
Entity Tax Identification Number | 57-0248420 | ||
Entity Address, Address Line One | 1 N. Second St. | ||
Entity Address, City or Town | Hartsville | ||
Entity Address, State or Province | SC | ||
Entity Address, Postal Zip Code | 29550 | ||
City Area Code | 843 | ||
Local Phone Number | 383-7000 | ||
Title of 12(b) Security | No par value common stock | ||
Trading Symbol | SON | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,455,701,379 | ||
Entity Common Stock, Shares Outstanding | 100,255,008 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the annual meeting of shareholders to be held on April 15, 2020, which statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Report relates, are incorporated by reference in Part III. | ||
Entity Central Index Key | 0000091767 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 145,283 | $ 120,389 |
Trade accounts receivable, net of allowances of $14,382 in 2019 and $11,692 in 2018 | 698,149 | 737,420 |
Other receivables | 113,754 | 111,915 |
Inventories | ||
Finished and in process | 172,223 | 174,115 |
Materials and supplies | 331,585 | 319,649 |
Prepaid expenses | 60,202 | 55,784 |
Total Current Assets | 1,521,196 | 1,519,272 |
Property, Plant and Equipment, Net | 1,286,842 | 1,233,821 |
Goodwill | 1,429,346 | 1,309,167 |
Other Intangible Assets, Net | 388,292 | 352,037 |
Long-term Deferred Income Taxes | 46,502 | 47,297 |
Right of Use Asset-Operating Leases | 298,393 | |
Other Assets | 155,718 | 121,871 |
Total Assets | 5,126,289 | 4,583,465 |
Current Liabilities | ||
Payable to suppliers | 537,764 | 556,011 |
Accrued expenses and other | 289,067 | 237,197 |
Accrued wages and other compensation | 78,047 | 85,761 |
Notes payable and current portion of long-term debt | 488,234 | 195,445 |
Accrued taxes | 11,380 | 8,516 |
Total Current Liabilities | 1,404,492 | 1,082,930 |
Long-term Debt | 1,193,135 | 1,189,717 |
Noncurrent Operating Lease Liabilities | 253,992 | |
Pension and Other Postretirement Benefits | 304,798 | 374,419 |
Deferred Income Taxes | 76,206 | 64,273 |
Other Liabilities | 77,961 | 99,848 |
Commitments and Contingencies | ||
Sonoco Shareholders’ Equity | ||
Preferred shares, no par value, authorized 30,000 shares, 0 shares issued and outstanding at December 31, 2019 and 2018, respectively | ||
Common shares, no par value, authorized 300,000 shares, 100,198 and 99,829 shares issued and outstanding at December 31, 2019 and 2018, respectively | 7,175 | 7,175 |
Capital in excess of stated value | 310,778 | 304,709 |
Accumulated other comprehensive loss | (816,803) | (740,913) |
Retained earnings | 2,301,532 | 2,188,115 |
Total Sonoco Shareholders’ Equity | 1,802,682 | 1,759,086 |
Noncontrolling Interests | 13,023 | 13,192 |
Total Equity | 1,815,705 | 1,772,278 |
Total Liabilities and Equity | $ 5,126,289 | $ 4,583,465 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowances for trade accounts receivable | $ 14,382 | $ 11,692 |
Preferred stock, authorized (in shares) | 30,000,000 | 30,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, issued (in shares) | 100,198,000 | 99,829,000 |
Common stock, outstanding (in shares) | 100,198,000 | 99,829,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 5,374,207 | $ 5,390,938 | $ 5,036,650 |
Cost of sales | 4,316,378 | 4,349,932 | 4,077,998 |
Gross profit | 1,057,829 | 1,041,006 | 958,652 |
Selling, general and administrative expenses | 530,867 | 563,306 | 507,824 |
Restructuring, Settlement and Impairment Provisions | 59,880 | 40,071 | 38,419 |
Operating profit | 467,082 | 437,629 | 412,409 |
Non-operating pension costs | 24,713 | 941 | 45,110 |
Interest expense | 66,845 | 63,147 | 57,220 |
Interest income | 5,242 | 4,990 | 4,475 |
Income before income taxes | 380,766 | 378,531 | 314,554 |
Provision for income taxes | 93,269 | 75,008 | 146,589 |
Income before equity in earnings of affiliates | 287,497 | 303,523 | 167,965 |
Equity in earnings of affiliates, net of tax | 5,171 | 11,216 | 9,482 |
Net income | 292,668 | 314,739 | 177,447 |
Net (income) attributable to noncontrolling interests | (883) | (1,179) | (2,102) |
Net income attributable to Sonoco | $ 291,785 | $ 313,560 | $ 175,345 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 100,742 | 100,539 | 100,237 |
Assuming exercise of awards (in shares) | 434 | 477 | 615 |
Diluted (in shares) | 101,176 | 101,016 | 100,852 |
Earnings Per Share [Abstract] | |||
Basic (usd per share) | $ 2.90 | $ 3.12 | $ 1.75 |
Diluted (usd per share) | $ 2.88 | $ 3.10 | $ 1.74 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 292,668 | $ 314,739 | $ 177,447 | |
Other comprehensive income/(loss): | ||||
Foreign currency translation adjustments | 8,270 | (54,763) | 89,108 | |
Changes in defined benefit plans, net of tax | [1] | (87,033) | (20,244) | 59,924 |
Change in derivative financial instruments, net of tax | [1] | 2,035 | (1,614) | (2,580) |
Other comprehensive income/(loss) | (76,728) | (76,621) | 146,452 | |
Comprehensive income/(loss) | 215,940 | 238,118 | 323,899 | |
Net (income) attributable to noncontrolling interests | (883) | (1,179) | (2,102) | |
Other comprehensive loss/(income) attributable to noncontrolling interests | 838 | 2,156 | (1,105) | |
Comprehensive income attributable to Sonoco | $ 215,895 | $ 239,095 | $ 320,692 | |
[1] | net of tax |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY - USD ($) $ in Thousands | Total | Common Shares | Capital in Excess of Stated Value | Accumulated Other Comprehensive Loss | Retained Earnings | Non- controlling Interests | |
Beginning Balance at Dec. 31, 2016 | $ 1,554,705 | $ 7,175 | $ 321,050 | $ (738,380) | $ 1,942,513 | $ 22,347 | |
Beginning Balance (in shares) at Dec. 31, 2016 | 99,193,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 177,447 | 175,345 | 2,102 | ||||
Other comprehensive income/(loss): | |||||||
Translation gain/(loss) | 89,108 | 88,003 | 1,105 | ||||
Defined benefit plan adjustment | [1] | 59,924 | 59,924 | ||||
Derivative financial instruments | [1] | (2,580) | (2,580) | ||||
Other comprehensive income/(loss) | 146,452 | 145,347 | 1,105 | ||||
Dividends | (154,773) | (154,773) | |||||
Issuance of stock awards | 1,636 | 1,636 | |||||
Issuance of stock awards (in shares) | 341,000 | ||||||
Shares repurchased | (6,335) | (6,335) | |||||
Shares repurchased (in shares) | (120,000) | ||||||
Stock-based compensation | 13,488 | 13,488 | |||||
Noncontrolling interest from acquisition | (2,560) | (2,560) | |||||
Ending Balance at Dec. 31, 2017 | 1,730,060 | $ 7,175 | 330,157 | (666,272) | 2,036,006 | 22,994 | |
Ending Balance (in shares) at Dec. 31, 2017 | 99,414,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 314,739 | 313,560 | 1,179 | ||||
Other comprehensive income/(loss): | |||||||
Translation gain/(loss) | (54,763) | (52,607) | (2,156) | ||||
Defined benefit plan adjustment | [1] | (20,244) | (20,244) | ||||
Derivative financial instruments | [1] | (1,614) | (1,614) | ||||
Other comprehensive income/(loss) | (76,621) | (74,465) | (2,156) | ||||
Dividends | (163,348) | (163,348) | |||||
Issuance of stock awards | 1,688 | 1,688 | |||||
Issuance of stock awards (in shares) | 682,000 | ||||||
Shares repurchased | (14,561) | (14,561) | |||||
Shares repurchased (in shares) | (267,000) | ||||||
Stock-based compensation | 10,730 | 10,730 | |||||
Purchase of Sonoco Asia noncontrolling interest | (35,000) | (23,305) | (11,695) | ||||
Noncontrolling interest from acquisition | 2,870 | 2,870 | |||||
Ending Balance at Dec. 31, 2018 | $ 1,772,278 | $ 7,175 | 304,709 | (740,913) | 2,188,115 | 13,192 | |
Ending Balance (in shares) at Dec. 31, 2018 | 99,829,000 | 99,829,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 292,668 | 291,785 | 883 | ||||
Other comprehensive income/(loss): | |||||||
Translation gain/(loss) | 8,270 | 9,108 | (838) | ||||
Defined benefit plan adjustment | [1] | (87,033) | (87,033) | ||||
Derivative financial instruments | [1] | 2,035 | 2,035 | ||||
Other comprehensive income/(loss) | (76,728) | (75,890) | (838) | ||||
Dividends | (171,597) | (171,597) | |||||
Issuance of stock awards | 1,343 | 1,343 | |||||
Issuance of stock awards (in shares) | 538,000 | ||||||
Shares repurchased | (9,608) | (9,608) | |||||
Shares repurchased (in shares) | (169,000) | ||||||
Stock-based compensation | 14,334 | 14,334 | |||||
Dividends paid to noncontrolling interests | (214) | (214) | |||||
Ending Balance at Dec. 31, 2019 | $ 1,815,705 | $ 7,175 | $ 310,778 | $ (816,803) | $ 2,301,532 | $ 13,023 | |
Ending Balance (in shares) at Dec. 31, 2019 | 100,198,000 | 100,198,000 | |||||
[1] | net of tax |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net income | $ 292,668 | $ 314,739 | $ 177,447 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Asset impairment | 25,026 | 5,794 | 20,017 |
Depreciation, depletion and amortization | 239,140 | 236,245 | 217,625 |
Gain on adjustment of environmental reserves | (10,675) | 0 | 0 |
Share-based compensation expense | 14,334 | 10,730 | 13,488 |
Equity in earnings of affiliates | (5,171) | (11,216) | (9,482) |
Cash dividends from affiliated companies | 6,620 | 7,570 | 6,967 |
Loss on remeasurement of previously held interest in Conitex Sonoco | 0 | 4,784 | 0 |
Net loss on disposition of assets | 746 | 8,635 | 2,039 |
Pension and postretirement plan expense | 52,741 | 34,885 | 78,506 |
Pension and postretirement plan contributions | (231,234) | (25,373) | (108,579) |
Net (decrease)/increase in deferred taxes | 16,958 | (9,420) | (20,553) |
Change in assets and liabilities, net of effects from acquisitions, dispositions and foreign currency adjustments | |||
Trade accounts receivable | 59,615 | 38,193 | (43,773) |
Inventories | 2,631 | (6,150) | (16,067) |
Payable to suppliers | (25,383) | (4,380) | 4,226 |
Prepaid expenses | 4,030 | (5,093) | (110) |
Accrued expenses | 7,471 | 19,153 | (14,606) |
Income taxes payable and other income tax items | (6,201) | (19,014) | 70,180 |
Other assets and liabilities | (17,466) | (10,184) | (29,071) |
Net cash provided by operating activities | 425,850 | 589,898 | 348,254 |
Cash Flows from Investing Activities | |||
Purchase of property, plant and equipment | (195,934) | (192,574) | (188,913) |
Cost of acquisitions, net of cash acquired | (298,380) | (277,177) | (383,725) |
Proceeds from the sale of assets | 14,614 | 24,288 | 5,271 |
Other | 603 | 1,335 | 2,791 |
Net cash used by investing activities | (479,097) | (444,128) | (564,576) |
Cash Flows from Financing Activities | |||
Proceeds from issuance of debt | 276,843 | 226,885 | 448,511 |
Principal repayment of debt | (139,582) | (281,262) | (217,320) |
Net increase/(decrease) in commercial paper borrowings | 130,000 | (4,000) | 124,000 |
Net increase/(decrease) in outstanding checks | (4,486) | (4,282) | 7,518 |
Payment of contingent consideration | (5,500) | 0 | 0 |
Cash dividends – common | (170,253) | (161,434) | (153,137) |
Dividends paid to noncontrolling interests | (214) | 0 | 0 |
Purchase of Sonoco Asia noncontrolling interest | 0 | (35,000) | 0 |
Shares acquired | (9,608) | (14,561) | (6,335) |
Net cash provided/(used) by financing activities | 77,200 | (273,654) | 203,237 |
Effects of Exchange Rate Changes on Cash | 941 | (6,639) | 10,771 |
Increase/(Decrease) in Cash and Cash Equivalents | 24,894 | (134,523) | (2,314) |
Cash and cash equivalents at beginning of year | 120,389 | 254,912 | 257,226 |
Cash and cash equivalents at end of year | 145,283 | 120,389 | 254,912 |
Supplemental Cash Flow Disclosures | |||
Interest paid, net of amounts capitalized | 66,768 | 63,147 | 57,170 |
Income taxes paid, net of refunds | $ 82,512 | $ 103,442 | $ 96,962 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Basis of presentation The Consolidated Financial Statements include the accounts of Sonoco Products Company and its majority-owned subsidiaries (the “Company” or “Sonoco”) after elimination of intercompany accounts and transactions. Investments in affiliated companies in which the Company shares control over the financial and operating decisions, but in which the Company is not the primary beneficiary, are accounted for by the equity method of accounting. Income applicable to these equity investments is reflected in “Equity in earnings of affiliates, net of tax” in the Consolidated Statements of Income. The aggregate carrying value of equity investments is reported in “Other Assets” in the Company’s Consolidated Balance She ets and totaled $54,339 and $55,516 at December 31, 2019 and 2018, respectively. Affiliated companies over which the Company exercised a significant influence at December 31, 2019, included: Entity Ownership Interest Percentage at December 31, 2019 RTS Packaging JVCO 35.0 % Cascades Conversion, Inc. 50.0 % Cascades Sonoco, Inc. 50.0 % Showa Products Company Ltd. 22.2 % Crown Fibre Tube. Inc. 20.0 % Papertech Energía, S.L. 25.0 % Weidenhammer New Packaging, LLC 40.0 % Also incl uded in the investment totals above is the Company’s 19.5% ownership in a small tubes and cores business in Chile and its 12.19% ownership in a small paper recycling business in Finland. These investments are accounted for under the cost method as the Company does not have the ability to exercise significant influence over them. Estimates and assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue recognition Beginning in 2018, the Company records revenue when control is transferred to the customer, which is either upon shipment or over time in cases where the Company is entitled to payment with margin for products produced that are customer specific without alternative use. The Company recognizes over time revenue under the input method as goods are produced. Revenue that is recognized at a point in time is recognized when the customer obtains control of the goods. Customers obtain control either when goods are delivered to the customer facility, if the Company is responsible for arranging transportation, or when picked up by the customer's designated carrier. The Company commonly enters into Master Supply Arrangements (MSA) with customers to provide goods and/or services over specific time periods. Customers submit purchase orders with quantities and prices to create a contract for accounting purposes. Shipping and handling expenses are considered a fulfillment cost, and included in "Cost of Sales," and freight charged to customers is included in "Net Sales" in the Company's Consolidated Statements of Income. Prior to 2018, the Company recorded revenue when title and risk of ownership passed to the customer, and when persuasive evidence of an arrangement existed, delivery had occurred or services had been rendered, the sales price to the customer was fixed or determinable and when collectibility was reasonably assured. Certain judgments, such as provisions for estimates of sales returns and allowances, were required in the application of the Company’s revenue policy and, therefore, were included in the results of operations in its Consolidated Financial Statements. Shipping and handling expenses were included in “Cost of sales,” and freight charged to customers was included in “Net sales” in the Company’s Consolidated Statements of Income for the year ended December 31, 2017. 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 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 after the originating sale. Accounts receivable and allowance for doubtful accounts The Company’s trade accounts receivable are non-interest bearing and are recorded at the invoiced amounts. The allowance for doubtful accounts represents the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. Provisions are made to the allowance for doubtful accounts at such time that collection of all or part of a trade account receivable is in question. The allowance for doubtful accounts is monitored on a regular basis and adjustments are made as needed to ensure that the account properly reflects the Company’s best estimate of uncollectible trade accounts receivable. Account balances are charged off against the allowance for doubtful accounts when the Company determines that the receivable will not be recovered. Sales to the Company’s largest custo mer accounted for approximately 5% of the Company’s net sales in 2019, 4% in 2018 and 4% in 2017, primarily in the Display and Packaging and Consumer Packaging segments. Receivables from this customer accounted for approximately 8% of the Company’s total trade accounts receivable at December 31, 2019 and 4% at December 31, 2018. The Company’s next largest customer comprised approximately 4% of the Co mpany’s net sales in 2019, 4% in 2018 and 3% in 2017. Certain of the Company’s customers sponsor and actively promote multi-vendor supply chain finance arrangements and, in a limited number of cases, the Company has agreed to participate. Accordingly, approxim ately 9% of consolidated annual sales were settled under these arrangements in both 2019 and 2018. Research and development Research and development costs are charged to expense as incurred and include salaries and other directly related expenses. Research and development costs totaling approximately $23,300 in 2019, $23,200 in 2018 and $21,000 in 2017 are included in “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Income. Restructuring and asset impairment Costs associated with exit or disposal activities are recognized when the liability is incurred. If assets become impaired as a result of a restructuring action, the assets are written down to fair value, less estimated costs to sell, if applicable. A number of significant estimates and assumptions are involved in the determination of fair value. The Company considers historical experience and all available information at the time the estimates are made; however, the amounts that are ultimately realized upon the sale of divested assets may differ from the estimated fair values reflected in the Company’s Consolidated Financial Statements. Cash and cash equivalents Cash equivalents are composed of highly liquid investments with an original maturity to the Company of generally three months or less when purchased. Cash equivalents are recorded at cost, which approximates market. Inventories Inventories are stated at the lower of cost or net realizable value. The last-in, first-out (LIFO) method is used for the valuation of certain of the Company’s domestic inventories, primarily metal, internally manufactured paper and paper purchased from third parties. The LIFO method of accounting was used to determine the carrying costs of a pproximately 13% and 14% o f total inventories at December 31, 2019 and 2018, respectively. The remaining inventories are determined on the first-in, first-out (FIFO) method. If the FIFO method of accounting had been used for all inventories, total inventory would have been hi gher by $20,203 and $18,854 at December 31, 2019 and 2018, respectively. Property, plant and equipment Plant assets represent the original cost of land, buildings and equipment, less depreciation, computed under the straight-line method over the estimated useful lives of the assets, and are reviewed for impairment whenever events indicate the carrying value may not be recoverable. Equipment lives generally range from 3 to 11 years, and buildings from 15 to 40 years. Timber resources are stated at cost. Depletion is charged to operations based on the estimated number of units of timber cut during the year. Goodwill and other intangible assets The Company assesses its goodwill for impairment annually during the third quarter, or from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. In performing the impairment test, the Company compares the fair value of the reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This quantitative test considers factors such as the amount by which estimated fair value exceeds current carrying value, current year operating performance as compared to prior projections, and implied fair values from comparable trading and transaction multiples. The calculated reporting unit estimated fair values reflect a number of significant management assumptions and estimates including the Company's forecast of sales, profit margins, and discount rate. Changes in these assumptions could materially impact the estimated fair values. When the Company estimates the fair value of a reporting unit, it does so using a discounted cash flow model based on projections of future years' operating results and associated cash flows, corroborated by comparable trading and transaction multiples. The Company's projections incorporate management's best estimates of the expected future results, which include expectations related to new and retained business and future operating margins. Projected future cash flows are then discounted to present value using a discount rate management believes is commensurate with the risks inherent in the cash flows. If the fair value of a reporting unit exceeds the carrying value of the reporting unit’s assets, including goodwill, there is no impairment. If the carrying value of the reporting unit exceeds the fair value of that reporting unit, an impairment charge is recognized for the excess. Goodwill is not amortized. Intangible assets are amortized, usually on a straight-line basis, over their respective useful lives, which generally range from 3 to 40 years. The Company evaluates its intangible assets for impairment whenever indicators of impairment exist. The Company has no intangibles with indefinite lives. Income taxes The Company provides for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting requirements and tax laws. Assets and liabilities are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company recognizes liabilities for uncertain income tax positions based on our estimate of whether it is more likely than not that additional taxes will be required and we report related interest and penalties as income taxes. Derivatives The Company elected to early adopt Accounting Standards Update (ASU) 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities," as of January 1, 2018. The Company uses derivatives to mitigate the effect of fluctuations in some of its raw material and energy costs, foreign currencies, and, from time to time, interest rates. The Company purchases commodities such as recovered paper, metal, resins and energy, generally at market or at fixed prices that are established with the vendor as part of the purchase process for quantities expected to be consumed in the ordinary course of business. The Company may enter into commodity futures or swaps to manage the effect of price fluctuations. The Company may use foreign currency forward contracts and other risk management instruments to manage exposure to changes in foreign currency cash flows and the translation of monetary assets and liabilities on the Company’s consolidated financial statements. The Company is exposed to interest-rate fluctuations as a result of using debt as a source of financing for its operations. The Company may from time to time use traditional, unleveraged interest rate swaps to adjust its mix of fixed and variable rate debt to manage its exposure to interest rate movements. The Company records its derivatives as assets or liabilities on the balance sheet at fair value using published market prices or estimated values based on current price and/or rate quotes and discounted estimated cash flows. Changes in the fair value of derivatives are recognized either in net income or in other comprehensive income, depending on the designated purpose of the derivative. Amounts in accumulated other comprehensive income are reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. It is the Company’s policy not to speculate in derivative instruments. Business combinations The Company’s acquisitions of businesses are accounted for in accordance with ASC 805, "Business Combinations." The Company recognizes the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquired business at their fair values as of the date of acquisition. Goodwill is measured as the excess of consideration transferred, also measured at fair value, over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. The acquisition method of accounting requires us to make significant estimates and assumptions regarding the fair values of the elements of a business combination as of the date of acquisition, including the fair values of identifiable intangible assets, deferred tax asset valuation allowances, liabilities including those related to debt, pensions and other postretirement plans, uncertain tax positions, contingent consideration and contingencies. This method also requires us to refine these estimates over a measurement period not to exceed one year to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. If we are required to adjust provisional amounts that we have recorded for the fair values of assets and liabilities in connection with acquisitions, these adjustments could have a material impact on our financial condition and results of operations. Significant estimates and assumptions in estimating the fair value of acquired customer relationships, technology, and other identifiable intangible assets include future cash flows that we expect to generate from the acquired assets. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, we could record impairment charges. In addition, we have estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If our estimates of the economic lives change, depreciation or amortization expenses could be increased or decreased, or the acquired asset could be impaired. Reportable segments The Company identifies its reportable segments by evaluating the level of detail reviewed by the chief operating decision maker, gross profit margins, nature of products sold, nature of the production processes, type and class of customer, methods used to distribute products, and nature of the regulatory environment. Of these factors, the Company believes that the most significant in determining the aggregation of operating segments are the nature of the products and the type of customers served. Contingencies Pursuant to U.S. GAAP for accounting for contingencies, accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and that the amounts are reasonably estimable. Amounts so accrued are not discounted. |
New accounting pronouncements
New accounting pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New accounting pronouncements | New accounting pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2019-12 "Income Taxes," which provides for certain updates to reduce complexity in the accounting for income taxes, including the utilization of the incremental approach for intraperiod tax allocation, among others. The amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company does not expect the implementation of ASU 2019-12 to have a material effect on its consolidated financial statements. In December 2018, the FASB issued 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 rates 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 August 2018, the FASB issued ASU 2018-14 "Compensation-Retirement Benefits-Defined Benefit Plans-General," which modifies certain disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in ASU 2018-14 are effective for fiscal years beginning after December 15, 2020. The Company does not expect the implementation of ASU 2019-12 to have a material effect on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," which requires measurement and recognition of expected versus incurred credit losses for financial assets held. The measurement of expected credit losses should be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within those annual periods. The Company will adopt this standard using a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings of approximately $200 as of January 1, 2020. The Company does not expect the implementation of ASU 2016-13 to have a material effect on its consolidated financial statements. In January 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 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 and, as also provided for under the standard, has made an accounting policy election to exclude from the balance sheet leases with a term of 12 months or less. The Company also elected 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 the 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. Upon the adoption of ASU 2016-02, the Company recorded on its consolidated balance sheet right of use assets totaling $336,083 and lease liabilities totaling $344,362, as well as a cumulative effect adjustment to retained earnings of $6,771 and a $1,508 reduction to deferred tax liabilities. Other than the pronouncements discussed above, 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 December 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 and dispositions
Acquisitions and dispositions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and dispositions | Acquisitions and dispositions Acquisitions The Company completed two acquisitions during 2019 at a net cash cost of $297,926. On December 31, 2019, the Company completed the acquisition of Thermoform Engineered Quality, LLC, and Plastique Holdings, LTD, (together "TEQ"), for $187,292, net of cash acquired. The operations acquired consist of three thermoforming and extrusion facilities in the United States along with a thermoforming operation in the United Kingdom and thermoforming and molded-fiber manufacturing in Poland, which together employ approximately 500 associates. The acquisition of TEQ provides a strong platform to further expand Sonoco's growing healthcare packaging business. Final consideration is subject to a post-closing adjustment for the change in working capital to the date of closing, which is expected to be completed by the end of the first quarter of 2020. The acquisition was financed using short-term credit facilities. On August 9, 2019, the Company completed the acquisition of Corenso Holdings America, Inc. ("Corenso") for $110,634, net of cash acquired. Corenso is a leading manufacturer of uncoated recycled paperboard (URB) and high-performance cores used in the paper, packaging films, tape, and specialty industries. Corenso operates a 108,000-ton per year URB mill and core converting facility in Wisconsin Rapids, Wisconsin, as well as a core converting facility in Richmond, Virginia, expanding the Company's ability to produce a wide variety of sustainable coreboard grades. The acquisition was financed using available cash and short-term borrowings. The preliminary fair values of the assets acquired and liabilities assumed in connection with the TEQ and Corenso acquisitions for the year ended December 31, 2019 are as follows: TEQ Corenso Trade Accounts Receivable $ 11,781 $ 8,673 Inventories 4,262 8,707 Property, Plant and Equipment 42,005 36,928 Goodwill 75,595 43,427 Other intangible assets 56,170 29,170 Payable to suppliers (4,965) (5,963) Other net tangible assets/(liabilities) 3,243 405 Deferred income taxes, net (799) (10,713) Net assets $ 187,292 $ 110,634 The amount of goodwill expected to be deductible for income tax purposes is $58,544 for TEQ and $0 for Corenso. Goodwill for TEQ and Corenso is comprised of the assembled workforce and increased access to certain markets. As the acquisition of TEQ was completed on December 31, 2019, none of its results are reflected in the Company's Consolidated Statement of income for the year ended December 31, 2019. Beginning in the first quarter of 2020, TEQ's results will be reflected in the Company's Consumer Packaging segment. Corenso's financial results from August 9, 2019 to December 31, 2019 are included in the Company's Paper and Industrial Converted Products segment. The allocation of the purchase price of Corenso and TEQ to the tangible and intangible assets acquired and liabilities assumed was based on the Company's preliminary estimates of their fair value, relying on information currently available. Management is continuing to finalize its valuations of certain assets and liabilities listed in the table above, and expects to complete its valuations within one year of the date of the respective acquisitions. The Company does not believe that the results of the business acquired in 2019 were material to the years presented, individually or in the aggregate, and are therefore not subject to the supplemental pro-forma information required by ASC 805. Accordingly, this information is not presented herein. The Company completed three acquisitions during 2018 at a net cash cost of $278,777. On October 1, 2018, the Company completed the acquisition of the remaining 70 percent interest in Conitex Sonoco (BVI), Ltd. ("Conitex Sonoco") from Texpack Investments, Inc. ("Texpack") for total consideration of $134,847, including net cash payments of $127,782 and debt assumed of $7,065. Final consideration was subject to a post-closing adjustment for the change in working capital to the date of closing. This adjustment was settled in February 2019 for an additional cash payment to the seller of $84. The Conitex Sonoco joint venture was formed in 1998 with Texpack, a Spanish-based global provider of paperboard and paper-based packaging products. Conitex Sonoco produces uncoated recycled paperboard and tubes and cones for the global spun yarn industry, as well as adhesives, flexible intermediate bulk containers and corrugated pallets. Conitex Sonoco has approximately 1,250 employees across 13 manufacturing locations in 10 countries (principally in Asia), including four paper mills and seven cone and tube converting operations and two other production facilities. Also on October 1, 2018, the Company acquired a rigid paper facility in Spain ("Compositub") from Texpack Group Holdings B.V. for a cash payment of $9,956. Final consideration was subject to a post-closing adjustment for the change in working capital to the date of closing. This adjustment was settled in February 2019 for an additional cash payment to the seller of $371. Immediately prior to the acquisition, the fair value of the Company's 30 percent interest in Conitex Sonoco was determined to be $52,543 with a carrying value of $57,327. As the carrying value of the investment exceeded its acquisition-date fair value, the investment was written down to fair value resulting in a charge of $4,784 in "Selling, general and administrative expenses" on the Company's Consolidated Statements of Income for the year ended December 31, 2018. Additionally, foreign currency translation losses related to the Company's investment in Conitex Sonoco were reclassified out of accumulated other comprehensive loss resulting in a charge of $897 in "Selling, general and administrative expenses" on the Company's Consolidated Statements of Income for the year ended December 31, 2018. On April 12, 2018, the Company completed the acquisition of Highland Packaging Solutions ("Highland"). Total consideration for this acquisition was $148,539, including net cash paid of $141,039, along with a contingent purchase liability of $7,500 payable in two annual installments if certain sales metrics are achieved. The first year's metric was met and the Company paid the first installment of $5,000 in 2019. The second installment of $2,500 is expected to be paid in the second quarter of 2020. The liability for the remaining installment is included in "Accrued expenses and other" on the Company's Consolidated Balance Sheet at December 31, 2019. Highland manufactures thermoformed plastic packaging for fresh produce and dairy products from a single production facility in Plant City, Florida, providing total packaging solutions for customers that include sophisticated engineered containers, flexographic printed labels, and inventory management through distribution warehouses in the Southeast and West Coast of the United States. During the year ended December 31, 2019, the Company finalized its valuations of the assets acquired and liabilities assumed in acquisitions completed during 2018. As a result, the following measurement period adjustments were made to the previously disclosed provisional fair values of assets and liabilities acquired and are as follows: Conitex Sonoco Compositub Highland Trade accounts receivable $ (77) $ 203 $ — Inventories — 50 — Property, plant and equipment (199) (1,026) 1,895 Goodwill 2,246 (566) (1,895) Other intangible assets 300 1,888 — Accrued expenses and other (1,782) (138) — Other net tangible assets/(liabilities) (404) (40) — Additional cash consideration $ 84 $ 371 $ — Factors comprising the goodwill for Conitex Sonoco and Compositub, of which $2,000 and $1,965, respectively, is expected to be deductible for income tax purposes, include increased access to certain markets as well as the value of the assembled workforce. The financial results of Conitex Sonoco and Compositub are included in the Company's Paper and Industrial Converted Products segment and Consumer Packaging segment, respectively. All of the goodwill for Highland is expected to be deductible for income tax purposes, and is comprised of increased access to certain markets as well as the value of the assembled workforce. Highland's financial results are included in the Company's Consumer Packaging segment and the business operates within the Company's global plastics division. The Company does not believe that the results of the businesses acquired in 2018 were material to the years presented, individually or in the aggregate, and are therefore not subject to the supplemental pro-forma information required by ASC 805. Accordingly, this information is not presented herein. The Company completed two acquisitions during 2017 at a net cash cost of $383,725. On July 24, 2017, the Company completed the acquisition of Clear Lam Packaging, Inc. ("Clear Lam") for $164,951, net of cash acquired. Final consideration was subject to an adjustment for working capital, which resulted in cash of $1,600 being returned to the Company in 2018. Clear Lam manufactures high barrier flexible and forming films used to package a variety of products for consumer packaged goods companies, retailers and other industrial manufacturers, with a focus on structures used for perishable foods. It has production facilities in Elk Grove Village, Illinois, and Nanjing, China. Clear Lam's financial results are included in the Company's Consumer Packaging segment. On March 14, 2017, the Company completed the acquisition of Packaging Holdings, Inc. and subsidiaries, including Peninsula Packaging LLC ("Packaging Holdings"), for $218,774, net of cash acquired. Packaging Holdings manufactures thermoformed packaging for a wide range of whole fresh fruits, pre-cut fruits and produce, prepared salad mixes, as well as baked goods in retail supermarkets from five manufacturing facilities, including four in the United States and one in Mexico. Packaging Holding's financial results are included in the Company's Consumer Packaging segment and the business operates as the Peninsula brand of thermoformed packaging products within the Company's global plastics division. Although neither of the acquisitions completed during 2017 were considered individually material, they were considered material on a combined basis. The following table presents the Company's estimated pro forma consolidated results for 2017, assuming both acquisitions had occurred January 1, 2016. This pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisitions had been completed as of the beginning of 2016, nor are they necessarily indicative of future consolidated results. Consolidated Pro Forma Supplemental Information Year Ended Packaging Holdings and Clear Lam (unaudited) Net sales $ 5,143,066 Net income attributable to Sonoco $ 178,205 Earnings per share: Pro forma basic $ 1.78 Pro forma diluted $ 1.77 The pro forma information above does not project the Company’s expected results of any future period and gives no effect for any future synergistic benefits that may result from consolidating these subsidiaries or costs from integrating their operations with those of the Company. Pro forma information for 2017 includes adjustments to depreciation, amortization, interest expense, and income taxes. Acquisition-related costs of $4,345 and non-recurring expenses related to fair value adjustments to acquisition-date inventory of $5,750 were recognized in 2017 in connection with the acquisitions of Packaging Holdings and Clear Lam. These costs are excluded from 2017 pro forma net income. The following table presents the aggregate, unaudited financial results for Packaging Holdings and Clear Lam from their respective dates of acquisition: Packaging Holdings and Clear Lam Year Ended Actual net sales $ 215,227 Actual net income $ 3,886 Acquisition-related costs of $8,842, $14,446 and $13,790 were incurred in 2019, 2018 and 2017, respectively. These costs, consisting primarily of legal and professional fees, are included in “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Income. Acquisition-related costs incurred in 2018 also include the previously discussed charge related to the acquisition-date fair value remeasurement of the Company's 30 percent investment in Conitex Sonoco and the foreign currency translation losses related to this investment. The Company has accounted for these acquisitions as business combinations under the acquisition method of accounting, in accordance with the business combinations subtopic of the Accounting Standards Codification and, accordingly, has included their results of operations in the Company’s consolidated statements of net income from the respective dates of acquisition. Dispositions There were no dispositions during the years ended 2019, 2018 or 2017. |
Restructuring and asset impairm
Restructuring and asset impairment | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and asset impairment | Restructuring and asset impairment Due to its geographic footprint and the cost-competitive nature of its businesses, the Company is constantly seeking the most cost-effective means and structure to serve its customers and to respond to fundamental changes in its markets. As such, restructuring costs have been and are expected to be a recurring component of the Company's operating costs. The amount of these costs can vary significantly from year to year depending upon the scope and location of the restructuring activities. Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented: Year Ended December 31, 2019 2018 2017 Restructuring and restructuring-related asset impairment charges $ 44,819 $ 40,071 $ 19,834 Other asset impairments 15,061 — 18,585 Restructuring/Asset impairment charges $ 59,880 $ 40,071 $ 38,419 "Restructuring and restructuring-related asset impairment charges" and "Other asset impairments" are included in “Restructuring/Asset impairment charges” in the Consolidated Statements of Income. The Company expects to recognize future additional costs totaling approximately $2,800 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 2020. The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred: Year Ended December 31, 2019 2018 2017 Severance and Termination Benefits $ 24,864 $ 15,224 $ 12,684 Asset Impairment/Disposal of Assets 9,674 6,193 120 Other Costs 10,281 18,654 7,030 Total restructuring and restructuring-related asset impairment charges $ 44,819 $ 40,071 $ 19,834 The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment: Year Ended December 31, 2019 2018 2017 Consumer Packaging $ 34,850 $ 15,205 $ 6,751 Display and Packaging 2,459 18,800 2,048 Paper and Industrial Converted Products 4,927 4,301 7,410 Protective Solutions 519 1,532 3,162 Corporate 2,064 233 463 Total restructuring and restructuring-related asset impairment charges $ 44,819 $ 40,071 $ 19,834 The following table sets forth the activity in the restructuring accrual included in “Accrued expenses and other” on the Company’s Consolidated Balance Sheets: Severance and Termination Benefits Asset Impairment/ Disposal of Assets Other Costs Total Liability, December 31, 2017 $ 5,982 $ — $ 1,164 $ 7,146 2018 charges 15,224 6,193 18,654 40,071 Cash (payments)/receipts (15,844) 26,566 (17,541) (6,819) Asset write downs/disposals — (32,759) — (32,759) Foreign currency translation (69) — 2 (67) Liability, December 31, 2018 $ 5,293 $ — $ 2,279 $ 7,572 2019 charges 24,864 9,674 10,281 44,819 Cash (payments)/receipts (19,386) 5,225 (11,983) (26,144) Asset write downs/disposals — (14,899) — (14,899) Foreign currency translation (6) — 15 9 Liability, December 31, 2019 $ 10,765 $ — $ 592 $ 11,357 The Company expects to pay the majority of the remaining restructuring reserves by the end of 2020 using cash generated from operations. During 2019, the Company announced the elimination of a forming film production line at a flexible packaging facility in Illinois, and initiated the closure of a composite can and injection molding facility in Germany, a composite can plant in Malaysia, a molded plastics plant in the United States (all part of the Consumer Packaging segment), and three tube and core plants - one in the United Kingdom, one in Norway, and one in Estonia (all part of the Paper and Industrial Converted Products segment). Restructuring actions in the Protective Solutions segment included charges associated with the exit of a protective packaging facility in Texas. In addition the Company continued to realign its cost structure, resulting in the elimination of approximately 223 positions. "Asset Impairment/Disposal of Assets" recognized in 2019 consist primarily of the following asset impairment charges: $4,124 from the elimination of a forming film line at a flexible packaging facility in Illinois; $3,663 from the closure of a composite can and injection molding facility in Germany; $909 from the closure of a thermoformed packaging plant in California; $325 from the closure of a composite can plant in Malaysia; and $1,827 from various other restructuring actions during 2019. Partially offsetting these losses was a $1,173 gain from the sale of a vacant Protective Solutions facility in Connecticut for which the Company received cash proceeds of $929, released an environmental reserve of $675, the liability for which was assumed by the buyer, and wrote off assets with a book value of $431. "Other costs" in 2019 consist primarily of costs related to plant closures including equipment removal, utilities, plant security, property taxes and insurance. During 2018, the Company initiated the closures 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), and 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 in Atlanta, Georgia. In addition, the Company continued to realign its cost structure, resulting in the elimination of approximately 120 positions. Included in "Asset Impairment/Disposal of Assets" above in 2018 are losses totaling $4,516 from the disposition of certain assets as a result of exiting a single-customer contract associated with a packaging center in Atlanta, Georgia. The Company received proceeds of $22,163 in conjunction with the sale of fixed assets with a net book value of $24,869, and wrote off inventory with a book value of $1,810. Also included in "Asset Impairment/Disposal of Assets" are net losses totaling $1,677 from various other restructuring actions during 2018. "Other Costs" in 2018 include a contract termination fee of $9,600 relating to exiting the single-customer contract, a one-time building lease contract termination fee of $1,931 relating to the closure of a packaging services center in Mexico, as well as costs related to plant closures including equipment removal, utilities, plant security, property taxes and insurance. Other Asset Impairments During the Company's 2019 long-lived asset impairment testing, management concluded that certain assets within the temperature-controlled shipping solution business associated with the ThermoSafe division, part of the Protective Packaging segment, were impaired as the value of the projected cash flows from these assets was no longer sufficient to recover their carrying values. As a result, the Company recognized a pretax asset impairment charge of $10,099. Also during this testing, the Company impaired the assets and inventory associated with a plastic can business line in the United States (part of the Consumer Packaging segment) due to the inability to generate sufficient revenues associated with this product offering. As a result, the Company recognized an asset impairment charge of $4,054. In addition, the single customer served using certain proprietary technology in our flexible packaging business ended its relationship with Sonoco in 2019, resulting in the recognition of a pretax asset impairment charge for the remaining net book value of fixed assets and intangible assets totaling $908. During the fourth quarter of 2017, the Company recognized the impairment of a power generating facility at its Hartsville manufacturing complex. The facility, which is part of the Paper and Industrial Converted Products segment, was determined to have been rendered obsolete by the Company's new biomass facility and was closed during the first quarter of 2018. As a result, the Company recognized a pretax asset impairment charge of $17,822 in December 2017. Also in 2017, as a result of the continued devaluation of the Venezuelan Bolivar, the Company recognized impairment charges against inventories and certain long-term nonmonetary assets totaling $338. The assets were deemed to be impaired as the U.S. dollar value of the projected cash flows from these assets was no longer sufficient to recover their U.S. dollar carrying values. In addition, the Company has recognized foreign exchange remeasurement losses on net monetary assets of $425. These asset impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s Consolidated Statements of Income. |
Book overdrafts and cash poolin
Book overdrafts and cash pooling | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Book overdrafts and cash pooling | Book overdrafts and cash pooling At December 31, 2019 and 2018, outstanding checks totaling $8,796 and $13,205, respectively, were included in “Payable to suppliers” on the Company’s Consolidated Balance Sheets. In addition, outstanding payroll checks of $38 and $114 as of December 31, 2019 and 2018, respectively, were included in “Accrued wages and other compensation” on the Company’s Consolidated Balance Sheets. The Company uses a notional pooling arrangement with an international bank to help manage global liquidity requirements. Under this pooling arrangement, the Company and its participating subsidiaries may maintain either cash deposit or borrowing positions through local currency accounts with the bank, so long as the aggregate position of the global pool is a notionally calculated net cash deposit. Because it maintains a security interest in the cash deposits, and has the right to offset the cash deposits against the borrowings, the bank provides the Company and its participating subsidiaries favorable interest terms on both. The Company’s Consolidated Balance Sheets reflect a net cash deposit under this pooling arrangement of $4,409 and $2,562 as of December 31, 2019 and 2018, respectively. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment Details of the Company's property, plant and equipment at December 31 are as follows: 2019 2018 Land $ 114,443 $ 110,698 Timber resources 42,338 41,862 Buildings 560,334 535,433 Machinery and equipment 3,077,500 2,977,156 Construction in progress 143,021 159,661 3,937,636 3,824,810 Accumulated depreciation and depletion (2,650,794) (2,590,989) Property, plant and equipment, net $ 1,286,842 $ 1,233,821 Estimated costs for completion of capital additions under construction totaled approximately $102,836 at December 31, 2019. Depreciation and depletion expense amounted to $186,540 in 2019, $188,533 in 2018 and $178,049 in 2017. |
Leases
Leases | 12 Months Ended |
Dec. 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 December 31, 2019: Classification Balance Sheet Location December 31, 2019 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 298,393 Finance lease assets Other Assets 34,858 Total lease assets $ 333,251 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 54,048 Current finance lease liabilities Notes payable and current portion of debt 10,803 Total current lease liabilities $ 64,851 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 253,992 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 22,274 Total noncurrent lease liabilities $ 276,266 Total lease liabilities $ 341,117 As of December 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 $6,200, which are not reflected in the Company's liabilities recorded as of December 31, 2019. These leases should commence during fiscal year 2020 with lease terms of approximately 12 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 year ended December 31, 2019: Lease Cost Twelve months ended December 31, 2019 Operating lease cost (a) $ 61,845 Finance lease cost: Amortization of lease asset (a) (b) 6,965 Interest on lease liabilities (c) 763 Variable lease cost (a) (d) 51,616 Total lease cost $ 121,189 (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 year ended December 31, 2018 was $80,300 and $68,900 for the year ended December 31, 2017. The following table sets forth the five-year maturity schedule of the Company's lease liabilities as of December 31, 2019: Maturity of Lease Liabilities Operating Leases Finance Leases Total 2020 $ 55,681 $ 11,124 $ 66,805 2021 49,474 9,258 58,732 2022 43,418 7,322 50,740 2023 39,831 4,569 44,400 2024 33,424 2,355 35,779 Beyond 2024 167,463 227 167,690 Total lease payments $ 389,291 $ 34,855 $ 424,146 Less: Interest 81,251 1,778 83,029 Lease Liabilities $ 308,040 $ 33,077 $ 341,117 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 at December 31, 2019, along with other lease-related information for the year ended December 31, 2019: Lease Term and Discount Rate As of December 31, 2019 Weighted-average remaining lease term (years): Operating leases 10.2 Finance leases 3.8 Weighted-average discount rate: Operating leases 4.74% Finance leases 2.97% Other Information Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 61,532 Operating cash flows used by finance leases 763 Financing cash flows used by finance leases 7,989 Leased assets obtained in exchange for new operating lease liabilities 28,762 Leased assets obtained in exchange for new finance lease liabilities 24,106 |
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 December 31, 2019: Classification Balance Sheet Location December 31, 2019 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 298,393 Finance lease assets Other Assets 34,858 Total lease assets $ 333,251 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 54,048 Current finance lease liabilities Notes payable and current portion of debt 10,803 Total current lease liabilities $ 64,851 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 253,992 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 22,274 Total noncurrent lease liabilities $ 276,266 Total lease liabilities $ 341,117 As of December 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 $6,200, which are not reflected in the Company's liabilities recorded as of December 31, 2019. These leases should commence during fiscal year 2020 with lease terms of approximately 12 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 year ended December 31, 2019: Lease Cost Twelve months ended December 31, 2019 Operating lease cost (a) $ 61,845 Finance lease cost: Amortization of lease asset (a) (b) 6,965 Interest on lease liabilities (c) 763 Variable lease cost (a) (d) 51,616 Total lease cost $ 121,189 (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 year ended December 31, 2018 was $80,300 and $68,900 for the year ended December 31, 2017. The following table sets forth the five-year maturity schedule of the Company's lease liabilities as of December 31, 2019: Maturity of Lease Liabilities Operating Leases Finance Leases Total 2020 $ 55,681 $ 11,124 $ 66,805 2021 49,474 9,258 58,732 2022 43,418 7,322 50,740 2023 39,831 4,569 44,400 2024 33,424 2,355 35,779 Beyond 2024 167,463 227 167,690 Total lease payments $ 389,291 $ 34,855 $ 424,146 Less: Interest 81,251 1,778 83,029 Lease Liabilities $ 308,040 $ 33,077 $ 341,117 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 at December 31, 2019, along with other lease-related information for the year ended December 31, 2019: Lease Term and Discount Rate As of December 31, 2019 Weighted-average remaining lease term (years): Operating leases 10.2 Finance leases 3.8 Weighted-average discount rate: Operating leases 4.74% Finance leases 2.97% Other Information Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 61,532 Operating cash flows used by finance leases 763 Financing cash flows used by finance leases 7,989 Leased assets obtained in exchange for new operating lease liabilities 28,762 Leased assets obtained in exchange for new finance lease liabilities 24,106 |
Goodwill and other intangible a
Goodwill and other intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | Goodwill and other intangible assets Goodwill The changes in the carrying amount of goodwill by segment for the year ended December 31, 2019, are as follows: Consumer Packaging Display and Packaging Paper and Industrial Converted Products Protective Solutions Total Balance as of January 1, 2019 $ 617,332 $ 203,414 $ 256,947 $ 231,474 $ 1,309,167 Acquisitions 75,595 — 43,427 — 119,022 Measurement period adjustments (2,461) — 2,246 (215) Foreign currency translation 777 — 421 174 1,372 Balance as of December 31, 2019 $ 691,243 $ 203,414 $ 303,041 $ 231,648 $ 1,429,346 Acquisitions in 2019 resulted in the addition of $119,022 of goodwill, including $43,427 in connection with the August 2019 acquisition of Corenso and $75,595 in connection with the December 2019 acquisition of TEQ. Additionally, measurement period adjustments were made in 2019 to the fair values of the assets acquired and the liabilities assumed in the 2018 acquisitions of Compositub, Highland, and Conitex Sonoco resulting in increases/(decreases) in goodwill of $(566), $(1,895) and $2,246, respectively. These adjustments are reflected above in "Measurement period adjustments." See Note 3 for additional information. The Company assesses goodwill for impairment annually during the third quarter, or 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 2019. As part of this testing, the Company analyzed certain qualitative and quantitative factors in determining goodwill impairment. The Company's assessments reflected a number of significant management assumptions and estimates including the Company's forecast of sales, profit margins, and discount rates. 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 there is a negative change in the long-term outlook for the business or in other factors such as the discount rate. A large portion of projected sales in this 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. Total goodwill associated with this reporting unit was $203,414 at December 31, 2019. Based on the latest annual impairment test, the estimated fair value of the Display and Packaging reporting unit exceeded its carrying value by approximately 35%. In its 2019 annual goodwill impairment analysis, projected future cash flows for Display and Packaging were discounted at 8.9%. Based on the discounted cash flow model and holding other valuation assumptions constant, Display and Packaging projected operating profits across all future periods would have to be reduced approximately 27%, or the discount rate increased to 12.5%, in order for the estimated fair value to fall below the reporting unit’s carrying value. During the time subsequent to the annual evaluation, and at December 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 Details at December 31 are as follows: 2019 2018 Other Intangible Assets, Gross: Patents $ 26,096 $ 22,509 Customer lists 632,036 548,038 Trade names 32,427 31,174 Proprietary technology 24,525 28,748 Land use rights 172 282 Other 2,125 2,093 Other Intangible Assets, Gross $ 717,381 $ 632,844 Accumulated Amortization: Patents $ (11,669) $ (9,539) Customer lists (287,831) (246,946) Trade names (9,985) (7,413) Proprietary technology (17,910) (15,400) Land use rights (51) (48) Other (1,643) (1,461) Accumulated Amortization $ (329,089) $ (280,807) Other Intangible Assets, Net $ 388,292 $ 352,037 The acquisitions of Corenso in August 2019 and TEQ in December 2019 resulted in the addition of $29,170 and $56,170, respectively, of intangible assets, mostly related to customer lists. In addition, measurement period adjustments were made in 2019 to finalize the fair values of the assets acquired and the liabilities assumed in the 2018 acquisitions of Compositub and Conitex Sonoco resulting in increases in other intangible assets, primarily customer lists, of $1,888 and $300, respectively. See Note 3 for additional information. In the fourth quarter of 2019, the Company wrote off patents with a net book value totaling $340 resulting from the loss of the single flexible packaging customer it served using the particular technology. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Details of the Company's debt at December 31 were as follows: 2019 2018 5.75% debentures due November 2040 $ 599,244 $ 599,208 4.375% debentures due November 2021 249,428 249,116 9.2% debentures due August 2021 4,318 4,315 1.00% Euro loan due May 2021 167,272 169,976 Term loan, due May 2020 200,000 — Term loan, due July 2022 146,569 158,949 Commercial paper, average rate of 2.40% in 2019 and 2.15% in 2018 250,000 120,000 Other foreign denominated debt, average rate of 5.3% in 2019 and 3.7% in 2018 16,734 57,867 Finance lease obligations 33,077 — Other notes 14,727 25,731 Total debt 1,681,369 1,385,162 Less current portion and short-term notes 488,234 195,445 Long-term debt $ 1,193,135 $ 1,189,717 On May 17, 2019, the Company entered into a 364-day, $200,000 term loan with Wells Fargo Bank, National Association. The full $200,000 was drawn from this facility on May 20, 2019, and the proceeds were used to make voluntary contributions to the Company's U.S. defined benefit pension plans. This unsecured loan has a 364-day term and the Company has a one-time option to request an extension of the term for an additional 364 days if it meets certain conditions. Interest is assessed at the London Interbank Offered Rate (LIBOR) plus a margin based on a pricing grid that uses the Company's credit ratings. The LIBOR margin at December 31, 2019 was 100 basis points. There is no required amortization and repayment can be accelerated at any time at the discretion of the Company. On July 20, 2017, the Company entered into a Credit Agreement in connection with a new $750,000 bank credit facility with a syndicate of eight banks replacing an existing credit facility entered into on October 2, 2014, and reflecting substantially the same terms and conditions. Included in the new facility are a $500,000 five five The $500,000 revolving credit facility supports the Company's $500,000 commercial paper program. If circumstances were to prevent the Company from issuing commercial paper, it has the contractual right to draw funds directly on the underlying bank credit facility. The Company had $250,000 of outstanding commercial paper at December 31, 2019 and $120,000 at December 31, 2018. In addition to the $500,000 committed revolving bank credit facility, the Company had approximately $237,000 available under unused short-term lines of credit at December 31, 2019. These short-term lines of credit are for general Company purposes, with interest at mutually agreed-upon rates. Certain of the Company’s debt agreements impose restrictions with respect to the maintenance of financial ratios and the disposition of assets. The most restrictive covenants currently require the Company to maintain a minimum level of interest coverage, and a minimum level of net worth, as defined. As of December 31, 2019, the Company had substantial tolerance above the minimum levels required under these covenants. The principal requirements of debt maturing in the next five years are: 2020 2021 2022 2023 2024 Debt maturities by year $ 488,234 $ 444,715 $ 130,812 $ 6,639 $ 3,646 |
Financial instruments and deriv
Financial instruments and derivatives | 12 Months Ended |
Dec. 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 where the carrying amount differs from the fair value. December 31, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt $ 1,193,135 $ 1,351,397 $ 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 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 December 31, 2019 and 2018, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows. To the extent considered effective, the changes in fair value of these contracts are recorded in other comprehensive income and reclassified to income or expense in the period in which the hedged item impacts earnings. Commodity cash flow hedges The Company has entered into certain derivative contracts to manage some of the cost of anticipated purchases of natural gas and aluminu m. At December 31, 2019, natural gas swaps covering approximately 4.4 million MMBTUs were outstanding. These contracts represent approximately 61% of anticipated U.S. and Canadian usage for 2020. Additionally, the Company had swap contracts covering 1,225 metric tons of aluminum representing approximately 23% of anticipated usage for 2020. The total fair values of the Company’s commodity cash flow hedges were in net loss positions totaling $(1,625) and $(1,571) at December 31, 2019 and December 31, 2018, respectively. The amount of the loss included in accumulated other comprehensive loss at December 31, 2019, expected to be reclassified to the income statement during the next twelve months is $(1,578). Foreign currency cash flow hedges The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales and purchases forecasted to occur in 2020. The net positions of these contracts at December 31, 2019, were as follows: Currency Action Quantity Colombian peso Purchase 15,486,745 Mexican peso Purchase 335,494 Polish zloty Purchase 89,750 Czech koruna Purchase 40,333 Canadian dollar Purchase 20,812 British pound Purchase 6,187 Turkish lira Purchase 3,419 New Zealand dollar Sell (439) Australian dollar Sell (929) Swedish krona Sell (3,933) Euro Sell (30,323) Russian ruble Sell (182,187) The fair values of the Company’s foreign currency cash flow hedges related to forecasted sales and purchases netted to a gain position of $1,058 at December 31, 2019 and a loss position of $(1,712) at December 31, 2018. Gains of $1,057 are expected to be reclassified from accumulated other comprehensive loss to the income statement during the next twelve months. In addition, the Company has entered into forward contracts to hedge certain foreign currency cash flow transactions related to construction in progress. As of December 31, 2019 and December 31, 2018, the net position of these contracts was $1 and $(305) respectively. Gains totaling $107 and losses of $(88) were reclassified from accumulated other comprehensive loss and netted against the carrying value of the capitalized expenditures during the years ended December 31, 2019 and December 31, 2018, respectively. Gains of $1 are expected to be reclassified from accumulated other comprehensive loss 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 December 31, 2019, were as follows: Currency Action Quantity Colombian peso Purchase 10,536,995 Mexican peso Purchase 320,964 Canadian dollar Purchase 10,931 The fair value of the Company’s other derivatives was $54 and $166 at December 31, 2019 and 2018, respectively. The following table sets forth the location and fair values of the Company’s derivative instruments: Fair Value at December 31 Description Balance Sheet Location 2019 2018 Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ — $ 282 Commodity Contracts Other assets $ — $ — Commodity Contracts Accrued expenses and other $ (1,625) $ (1,843) Commodity Contracts Other liabilities $ — $ (10) Foreign Exchange Contracts Prepaid expenses $ 1,236 $ 770 Foreign Exchange Contracts Accrued expenses and other $ (178) $ (2,482) Derivatives not designated as hedging instruments: Foreign Exchange Contracts Prepaid expenses $ 88 $ 727 Foreign Exchange Contracts Accrued expenses and other $ (34) $ (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. Beginning in January 2020, the Company is party to a cross-currency swap agreement with a notional amount of $250,000 to effectively convert a portion of the Company's fixed-rate U.S. dollar denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt. The swap agreement matures November 1, 2024. Under the terms of the swap agreement, the Company will receive semi-annual interest payments in U.S. dollars at a rate of 5.75% and pay interest in euros at a rate of 3.856%. The following table sets forth the effect of the Company’s derivative instruments on financial performance for the twelve months ended December 31, 2019, excluding the gains on foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures: Description Amount of Gain or (Loss) Recognized in OCI on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income Derivatives in Cash Flow Hedging Relationships: Foreign Exchange Contracts $ 2,495 Net sales $ 1,381 Cost of sales $ (1,758) Commodity Contracts $ 216 Cost of sales $ 270 Location of Gain or (Loss) Recognized in Income Statement Gain or (Loss) Recognized Derivatives not designated as hedging instruments: Foreign Exchange Contracts Cost of sales $ — Selling, general and administrative $ (704) Description Revenue Cost of Sales Total amount of income and expense line items presented in the Consolidated Statements of Income $ 1,381 $ (1,488) The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships: Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income $ 1,381 $ (1,758) Commodity contract: Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income $ — $ 270 The following table sets forth the effect of the Company’s derivative instruments on financial performance for the twelve months ended December 31, 2018, excluding the gains on foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures: Description Amount of Gain or (Loss) Recognized in OCI on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income Derivatives in Cash Flow Hedging Relationships: Foreign Exchange Contracts $ (2,354) Net sales $ (203) Cost of sales $ (20) Commodity Contracts $ 258 Cost of sales $ 115 Location of Gain or (Loss) Recognized in Income Statement Gain or (Loss) Recognized Derivatives not designated as hedging instruments: Foreign Exchange Contracts Cost of sales $ — Selling, general and administrative $ 41 Description Revenue Cost of Sales Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ (203) $ 95 The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships: Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income $ (203) $ (20) Commodity contract: Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income $ — $ 115 |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements Fair value is defined as 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 at the measurement date. 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 tables set forth information regarding the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis: Description December 31, 2019 Assets measured at NAV (g) Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (1,625) $ — $ — $ (1,625) $ — Foreign exchange contracts 1,058 — — 1,058 — Non-hedge derivatives, net: Foreign exchange contracts 54 — — 54 — Postretirement benefit plan assets: Common Collective Trust (a) $ 1,212,114 $ 1,212,114 $ — $ — $ — Mutual funds(b) 171,198 — — 171,198 — Fixed income securities(c) 192,598 — — 192,598 — Short-term investments(d) 1,201 23 1,178 — Hedge fund of funds(e) 75,108 75,108 — — — Real estate funds(f) 938 938 — — — Cash and accrued income 43,244 — 43,244 — — Total postretirement benefit plan assets $ 1,696,401 $ 1,288,160 $ 43,267 $ 364,974 $ — Description December 31, 2018 Assets measured at NAV (g) 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 — — Postretirement benefit plan assets: Common Collective Trust (a) $ 862,565 $ 862,565 $ — $ — $ — Mutual funds(b) 157,088 — — 157,088 — Fixed income securities(c) 175,543 — — 175,543 — Short-term investments(d) 1,166 38 1,128 — Hedge fund of funds(e) 71,354 71,354 — — — Real estate funds(f) 61,249 61,249 — — — Cash and accrued income 786 — 786 — — Total postretirement benefit plan assets $ 1,329,751 $ 995,168 $ 824 $ 333,759 $ — a. Common collective trust investments consist of domestic and international large and mid capitalization equities, including emerging markets and funds invested in both short-term and long-term bonds. Underlying investments are generally valued at closing prices from national exchanges. Commingled funds, private securities, and limited partnerships are valued at unit values or net asset values provided by the investment managers. b. Mutual fund investments are comprised of equity securities of corporations with large capitalizations and also include funds invested in corporate equities in international and emerging markets and funds invested in long-term bonds, which are valued at closing prices from national exchanges. c. Fixed income securities include funds that invest primarily in government securities and long-term bonds. Underlying investments are generally valued at closing prices from national exchanges, fixed income pricing models, and independent financial analysts. Fixed income commingled funds are valued at unit values provided by the investment managers. d. Short-term investments include several money market funds used for managing overall liquidity. Underlying investments are generally valued at closing prices from national exchanges. Commingled funds are valued at unit values provided by the investment managers. e. The hedge fund of funds category includes investments in funds representing a variety of strategies intended to diversify risks and reduce volatility. It includes event-driven credit and equity investments targeted at economic policy decisions, long and short positions in U.S. and international equities, arbitrage investments and emerging market equity investments. Investments are valued at unit values or net asset values provided by the investment managers. f. This category includes investments in real estate funds (including office, industrial, residential and retail). Underlying real estate securities are generally valued at closing prices from national exchanges. g. Certain assets that are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The Company’s pension plan assets comprise more than 99% of its total postretirement benefit plan assets. The assets of the Company’s various pension plans and retiree health and life insurance plans are largely invested in the same funds and investments and in similar proportions and, as such, are not shown separately, but are combined in the tables above. Postretirement benefit plan assets are netted against postretirement benefit obligations to determine the funded status of each plan. The funded status is recognized in the Company’s Consolidated Balance Sheets as shown in Note 13 . As discussed i n Note 10, the Company uses derivatives to mitigate some of 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 and the 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 nonfinancial 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 years ended December 31, 2019 or 2018. For additional fair value information on the Company's financial instruments, see Note 10 . |
Share-based compensation plans
Share-based compensation plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation plans | Share-based compensation plans The Company provides share-based compensation to certain employees and non-employee directors in the form of stock appreciation rights, restricted stock units and other share-based awards. Beginning in 2019, share-based awards were issued pursuant to the Sonoco Products Company 2019 Omnibus Incentive Plan (the "2019 Plan"), which became effective upon approval by the shareholders on April 17, 2019. Awards issued from 2014 through 2018 were issued pursuant to the Sonoco Products Company 2014 Long-Term Incentive Plan (the “2014 Plan”); awards issued from 2012 through 2013 were issued pursuant to the Sonoco Products Company 2012 Long-Term Incentive Plan (the “2012 Plan”); and awards issued from 2009 through 2011 were issued pursuant to the Sonoco Products Company 2008 Long-Term Incentive Plan (the “2008 Plan”). Awards issued prior to 2009 were issued pursuant to the 1991 Key Employee Stock Plan (the “1991 Plan”) or the 1996 Non-Employee Directors Stock Plan (the “1996 Plan”). A total of 12,000,000 shares of common stock are reserved for awards granted under the 2019 Plan. As of the April 17, 2019 effective date, the 2019 Plan superseded the 2014 Plan and became the only plan under which equity-based compensation may be awarded to employees and non-employee directors. However, any awards under any of the prior plans that were outstanding on the effective date of the 2019 Plan remain subject to the terms and conditions, and continue to be governed, by such prior plans. Awards issued between January 1 and April 16, 2019 were effectively issued under the 2019 Plan when such awards were transferred over to be applied against the 2019 Plan’s reserve. Share reserve reductions for restricted and performance-based stock awards originally granted under the 2014 Plan were weighted higher than stock appreciation rights in accordance with the shareholder-approved conversion formula included within the 2019 Plan. Awards granted under all previous plans which are forfeited, expire or are canceled without delivery of shares, or which result in forfeiture of shares back to the Company, will be added to the total shares available under the 2019 Plan. At December 31, 2019, a total of 10,765,398 shares remain available for future grant under the 2019 Plan. The Company issues new shares for stock appreciation right exercises and stock unit conversions. The Company’s stock-based awards to non-employee directors have not been material. Accounting for share-based compensation Total compensation cost for share-based payment arrangements was $14,334, $10,730 and $13,488, for 2019, 2018 and 2017, respectively. The related tax benefit recognized in net income was $3,500, $2,678, and $5,058, for the same years, respectively. Share-based compensation expense is included in “Selling, general and administrative expenses” in the Consolidated Statements of Income. An “excess” tax benefit is created when the tax deduction for an exercised stock appreciation right, exercised stock option or converted stock unit exceeds the compensation cost that has been recognized in income. The additional net excess tax benefit realized was $3,520, $3,528 and $2,453 for 2019, 2018 and 2017, respectively. Stock appreciation rights Stock appreciation rights (SARs) granted vest over three years and expense is recognized following the graded-vesting method, which results in front-loaded expense being recognized during the early years of the required service period. Unvested SARs are cancelable upon termination of employment, except in the case of death, disability, or involuntary (or good reason) termination within two years of a change in control. The Company grants SARs annually on a discretionary basis to key employees. These SARs have an exercise price equal to the closing market price on the date of the grant and can be settled only in stock. The SARs granted in and since 2015 vest over three years, with one-third vesting on each anniversary date of the grant, and have 10-year terms. As of December 31, 2019, unrecognized compensation cost related to nonvested SARs totaled $2,413. This cost will be recognized over the remaining weighted-average vesting period of approximately 24 months. Noncash stock-based compensation associated with SARs totaled $3,227, $2,415, and $3,719 for 2019, 2018, and 2017, respectively. The aggregate intrinsic value of SARS exercised during 2019, 2018, and 2017 was $11,836, $9,029, and $3,786, respectively. The weighted-average grant date fair value of SARs granted was $8.30, $6.55 and $7.29 per share in 2019, 2018 and 2017, respectively. The Company computed the estimated fair values of all SARs using the Black-Scholes option-pricing model applying the assumptions set forth in the following table: 2019 2018 2017 Expected dividend yield 2.7 % 3.1 % 2.7 % Expected stock price volatility 16.6 % 16.2 % 17.2 % Risk-free interest rate 2.6 % 2.8 % 2.0 % Expected life of SARs 6 years 6 years 6 years The assumptions employed in the calculation of the fair value of SARs were determined as follows: • Expected dividend yield – the Company’s annual dividend divided by the stock price at the time of grant. • Expected stock price volatility – based on historical volatility of the Company’s common stock measured weekly for a time period equal to the expected life. • Risk-free interest rate – based on U.S. Treasury yields in effect at the time of grant for maturities equal to the expected life. • Expected life – calculated using the simplified method as prescribed in U.S. GAAP, where the expected life is equal to the sum of the vesting period and the contractual term divided by two. The activity related to the Company’s SARs is as follows: Nonvested Vested Total Weighted- average Exercise Price Outstanding, December 31, 2018 1,119,602 712,756 1,832,358 $ 47.41 Vested (620,026) 620,026 — Granted 543,278 — 543,278 $ 60.76 Exercised — (664,797) (664,797) $ 43.92 Forfeited/Expired (135,841) (12,875) (148,716) $ 53.36 Outstanding, December 31, 2019 907,013 655,110 1,562,123 $ 52.95 Exercisable, December 31, 2019 — 655,110 655,110 $ 47.69 The weighted average remaining contractual life for SARs outstanding and exercisable at December 31, 2019 was 7.5 years and 6.0 years, respectively. The aggregate intrinsic value for SARs outstanding and exercisable at December 31, 2019 was $13,375 and $8,931, respectively. At December 31, 2019, the fair market value of the Company’s stock used to calculate intrinsic value was $61.72 per share. Performance-based stock awards The Company grants performance contingent restricted stock units (PCSUs) annually on a discretionary basis to executive officers and certain key management employees. The ultimate number of PCSUs awarded is dependent upon the degree to which performance, relative to defined targets related to earnings and return on net assets employed, are achieved over a three three three The activity related to performance contingent restricted stock units is as follows: Nonvested Vested Total Average Grant Date Fair Value per Share Outstanding, December 31, 2018 329,532 322,287 651,819 $40.21 Granted 115,412 — 115,412 $56.04 Performance adjustments (42,866) — (42,866) $45.75 Vested (84,522) 84,522 — Converted — (177,902) (177,902) $35.55 Cancelled (18,720) — (18,720) $47.75 Dividend equivalents — 4,190 4,190 $60.42 Outstanding, December 31, 2019 298,836 233,097 531,933 $44.65 2019 PCSU. As of December 31, 2019, the 2019 PCSUs to be awarded are estimated to range from 0 to 228,650 units and are tied to the three 2018 PCSU . As of December 31, 2019, the 2018 PCSUs to be awarded are estimated to range from 0 to 253,962 units and are tied to the three 2017 PCSU. The performance cycle for the 2017 PCSUs was completed on December 31, 2019. Outstanding stock units of 84,522 units were determined to have been earned. The fair value of these units was $5,217 as of December 31, 2019. 2016 PCSU. The performance cycle for the 2016 PCSUs was completed on December 31, 2018. Outstanding stock units of 132,534 units were determined to have been earned, all of which qualified for vesting on December 31, 2018. The fair value of these units was $7,042 as of December 31, 2018. 2015 PCSU. The performance cycle for the 2015 PCSUs was completed on December 31, 2017. Outstanding stock units of 135,695 units were determined to have been earned, all of which qualified for vesting on December 31, 2017. The fair value of these units was $7,211 as of December 31, 2017. The weighted-average grant-date fair value of PCSUs granted was $56.04, $46.33, and $50.11 per share in 2019, 2018 and 2017, respectively. Noncash stock-based compensation associated with PCSUs totaled $5,171, $4,725 and $3,896 for 2019, 2018 and 2017, respectively. As of December 31, 2019, there was approximately $6,806 of total unrecognized compensation cost related to nonvested PCSUs. This cost is expected to be recognized over a weighted-average period of 19 months. Restricted stock awards During 2019, 2018 and 2017, the Company granted awards of restricted stocks units (RSUs) to executive officers and certain key management employees. These awards vest over a three The Company from time to time grants special RSUs to certain of its executive officers and directors. These awards normally vest over a five-year period with one-third vesting on each of the third, fourth and fifth anniversaries of the grant, but in some circumstances may vest over a shorter period, or cliff vest at the end of the five-year period. A participant must be actively employed by, or serving as a director of, the Company on the vesting date for shares to be issued. However, certain award agreements provide that in the event of the participant’s death, disability or retirement prior to full vesting, shares would be issued on a pro rata basis up through the time the participant’s employment or service ceases. Officers and directors can elect to defer receipt of RSUs, but key management employees are required to take receipt of stock issued. The weighted-average grant-date fair value of RSUs granted was $57.76, $48.36 and $51.68 per share in 2019, 2018 and 2017, respectively. The fair value of shares vesting during the year was $3,217, $6,900, and $2,790 for 2019, 2018 and 2017, respectively. Noncash stock-based compensation associated with restricted stock grants totaled $3,351, $2,138 and $3,554 for 2019, 2018 and 2017, respectively. As of December 31, 2019, there was $3,768 of total unrecognized compensation cost related to nonvested restricted stock units. This cost is expected to be recognized over a weighted-average period of 33 months. The activity related to restricted stock units is as follows: Nonvested Vested Total Average Grant Date Fair Value Per Share Outstanding, December 31, 2018 158,381 151,414 309,795 $ 38.41 Granted 69,686 — 69,686 $ 57.76 Vested (54,352) 54,352 — Converted — (114,981) (114,981) $ 40.00 Cancelled (18,701) — (18,701) $ 50.69 Dividend equivalents 1,563 3,923 5,486 $ 60.71 Outstanding, December 31, 2019 156,577 94,708 251,285 $ 46.14 Deferred compensation plans Certain officers of the Company receive a portion of their compensation, either current or deferred, in the form of stock equivalent units. Units are granted as of the day the cash compensation would have otherwise been paid using the closing price of the Company’s common stock on that day. Deferrals into stock equivalent units are converted into phantom stock equivalents as if Sonoco shares were actually purchased. The units immediately vest and earn dividend equivalents. Units are distributed in the form of common stock upon retirement over a period elected by the employee. Non-employee directors may elect to defer a portion of their cash retainer or other fees (except chair retainers) into phantom stock equivalent units as if Sonoco shares were actually purchased. The deferred stock equivalent units accrue dividend equivalents, and are issued in shares of Sonoco common stock six months following termination of Board service. Directors must elect to receive these deferred distributions in one, three or five annual installments. The activity related to deferred compensation for equity award units granted to both employees and non-employee directors combined is as follows: Total Outstanding, December 31, 2018 390,354 Deferred 46,065 Converted (80,288) Dividend equivalents 11,016 Outstanding, December 31, 2019 367,147 Deferred compensation for employees and directors of $2,585, $1,452, and $2,850, which will be settled in Company stock at retirement, was deferred during 2019, 2018, and 2017, respectively. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Dec. 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 for certain of its employees in the United States, Mexico, Belgium, Germany, Greece, France, and Turkey. The Company also sponsors contributory defined benefit pension plans covering certain of its employees in the United Kingdom, Canada and the Netherlands, and 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. On February 4, 2009, the U.S. qualified defined benefit pension plan was further 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: 2019 2018 2017 Retirement Plans Service cost $ 3,968 $ 18,652 $ 18,543 Interest cost 57,348 54,970 55,873 Expected return on plan assets (65,143) (91,021) (81,212) Amortization of prior service cost 1,022 916 910 Amortization of net actuarial loss 30,681 37,391 39,209 Effect of settlement loss 2,377 730 32,761 Effect of curtailment loss — 256 — Net periodic benefit cost $ 30,253 $ 21,894 $ 66,084 Retiree Health and Life Insurance Plans Service cost $ 308 $ 297 $ 313 Interest cost 467 452 463 Expected return on plan assets (718) (1,135) (1,636) Amortization of prior service credit (498) (498) (499) Amortization of net actuarial gain (823) (1,120) (759) Net periodic benefit income $ (1,264) $ (2,004) $ (2,118) The following tables set forth the Plans’ obligations and assets at December 31: Retirement Plans Retiree Health and Life Insurance Plans 2019 2018 2019 2018 Change in Benefit Obligation Benefit obligation at January 1 $ 1,684,277 $ 1,837,938 $ 14,048 $ 15,691 Service cost 3,968 18,652 308 297 Interest cost 57,348 54,970 467 452 Plan participant contributions 224 429 680 620 Plan amendments 1,343 155 — — Actuarial loss/(gain) 316,547 (115,153) 589 (398) Benefits paid (92,636) (93,053) (1,621) (2,569) Impact of foreign exchange rates 11,952 (21,636) 24 (45) Effect of settlements (8,101) (2,210) — — Effect of curtailments — (253) — — Acquisitions 1,275 4,438 — — Benefit obligation at December 31 $ 1,976,197 $ 1,684,277 $ 14,495 $ 14,048 Retirement Plans Retiree Health and Life Insurance Plans 2019 2018 2019 2018 Change in Plan Assets Fair value of plan assets at January 1 $ 1,318,832 $ 1,494,713 $ 10,919 $ 27,177 Actual return on plan assets 242,823 (78,447) 2,327 (915) Company contributions 215,979 24,524 682 (13,302) Plan participant contributions 224 429 680 620 Benefits paid (92,636) (93,053) (1,621) (2,569) Impact of foreign exchange rates 12,869 (22,380) — — Effect of settlements (8,101) (2,210) — — Expenses paid (7,084) (6,670) (106) (92) Acquisitions 614 1,926 — — Fair value of plan assets at December 31 $ 1,683,520 $ 1,318,832 $ 12,881 $ 10,919 Funded Status of the Plans $ (292,677) $ (365,445) $ (1,614) $ (3,129) The negative contribution reported in 2018 for the Company's Retiree Health and Life Insurance Plans reflects $14,025 of cash withdrawn from a collectively bargained VEBA in 2018 pursuant to an IRS private letter ruling dated April 1, 2018, permitting the Company to amend the VEBA to provide benefits to active, non-collectively bargained employees in addition to retired collectively bargained employees. Retirement Plans Retiree Health and Life Insurance Plans 2019 2018 2019 2018 Total Recognized Amounts in the Consolidated Balance Sheets Noncurrent assets $ 24,196 $ 18,520 $ — $ — Current liabilities (13,913) (12,935) (784) (983) Noncurrent liabilities (302,960) (371,030) (830) (2,146) Net liability $ (292,677) $ (365,445) $ (1,614) $ (3,129) Items not yet recognized as a component of net periodic pension cost that are included in Accumulated Other Comprehensive Loss (Income) as of December 31, 2019 and 2018, are as follows: Retirement Plans Retiree Health and Life Insurance Plans 2019 2018 2019 2018 Net actuarial loss/(gain) $ 759,610 $ 646,254 $ (7,055) $ (6,964) Prior service cost/(credit) 6,159 5,514 (279) (777) $ 765,769 $ 651,768 $ (7,334) $ (7,741) The amounts recognized in Other Comprehensive Loss/(Income) include the following: Retirement Plans Retiree Health and Life Insurance Plans 2019 2018 2017 2019 2018 2017 Adjustments arising during the period: Net actuarial loss/(gain) $ 146,414 $ 58,544 $ (10,732) $ (914) $ 1,738 $ (3,525) Prior service cost/(credit) 1,667 2,906 639 — — — Net settlements/curtailments (2,377) (986) (32,761) — — — Reversal of amortization: Net actuarial (loss)/gain (30,681) (37,391) (39,209) 823 1,120 759 Prior service (cost)/credit (1,022) (916) (910) 498 498 499 Total recognized in other comprehensive loss/(income) $ 114,001 $ 22,157 $ (82,973) $ 407 $ 3,356 $ (2,267) Total recognized in net periodic benefit cost and other comprehensive loss/(income) $ 144,254 $ 44,051 $ (16,889) $ (857) $ 1,352 $ (4,385) Of the amounts included in Accumulated Other Comprehensive Loss/(Income) as of December 31, 2019, the portions the Company expects to recognize as components of net periodic benefit cost in 2020 are as follows: Retirement Plans Retiree Health and Life Insurance Plans Net actuarial loss/(gain) $ 22,486 $ (808) Prior service cost/(credit) 1,037 (279) $ 23,523 $ (1,087) The accumulated benefit obligation for all defined benefit plans was $1,959,010 and $1,668,396 at December 31, 2019 and 2018, respectively. The projected benefit obligation (PBO), accumulated benefit obligation (ABO) and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were, $1,658,018, $1,651,740 and $1,341,556, respectively, as of December 31, 2019, and $1,397,040, $1,391,129 and $1,013,173, respectively, as of December 31, 2018. The following table sets forth the Company’s projected benefit payments for the next ten years: Year Retirement Plans Retiree Health and Life Insurance Plans 2020 $ 96,448 $ 1,344 2021 $ 93,436 $ 1,305 2022 $ 94,786 $ 1,269 2023 $ 95,830 $ 1,230 2024 $ 97,372 $ 1,173 2025-2029 $ 508,354 $ 5,344 Plan termination, settlements, changes and amendments In July 2019, the Company's Board of Directors approved a resolution to terminate the Sonoco Pension Plan for Inactive Participants (the "Inactive Plan"), a tax-qualified defined benefit plan, effective September 30, 2019. Upon approval from the Pension Benefit Guaranty Corporation, and following completion of a limited lump sum offering, the Company is expected to settle all remaining liabilities under the Inactive Plan through the purchase of annuities. The Company anticipates making additional contributions to the Inactive Plan of approximately $150,000 in late 2020 or early 2021 in order to be fully funded on a termination basis at the time of the annuity purchase. However, the actual amount of the Company's long-term liability when it is transferred, and the related cash contribution requirement, will depend upon the nature and timing of participant settlements, as well as prevailing market conditions. Non-cash, pretax settlement charges totaling approximately $600,000 are expected to be recognized beginning in 2020 as the lump sum payouts and annuity purchases are made. The termination of the Inactive Plan will apply to participants who have separated service from Sonoco and to non-union active employees who no longer accrue pension benefits. There is no change in the cumulative benefit previously earned by the approximately 11,000 impacted participants as a result of these actions, and the Company will continue to manage and support the Active Plan, comprised of approximately 600 active participants who continue to accrue benefits in accordance with a flat-dollar multiplier formula. Settlement charges totaling $2,377 and $730 were recognized in 2019 and 2018, respectively, primarily as a result of payments made to certain participants of the Company's Canadian pension plan who elected a lump-sum distribution option upon retirement. In February 2017, the Company initiated a program to settle a portion of the projected benefit obligation (PBO) relating to terminated vested participants in the U.S. qualified retirement plans through either a single, lump-sum payment or the purchase of an annuity. The terminated vested population comprised approximately 15% of the beginning of year PBO of these plans. The Company successfully settled approximately 47% of the PBO for the terminated vested plan participants. As a result of these and other smaller settlements, the Company recognized non-cash settlement charges of $32,761 in 2017. All settlement payments were funded from plan assets and did not require the Company to make any additional cash contributions. Assumptions The following tables set forth the major actuarial assumptions used in determining the benefit obligation and net periodic cost: Weighted-average assumptions used to determine benefit obligations at December 31 U.S. Retirement Plans U.S. Retiree Health and Life Insurance Plans Foreign Plans Discount Rate 2019 2.87 % 2.89 % 2.28 % 2018 4.24 % 4.02 % 3.11 % Rate of Compensation Increase 2019 — % 3.04 % 3.37 % 2018 — % 3.06 % 3.65 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31 U.S. Retirement Plans U.S. Retiree Health and Life Insurance Plans Foreign Plans Discount Rate 2019 4.24 % 4.02 % 3.11 % 2018 3.59 % 3.36 % 2.78 % 2017 4.12 % 3.70 % 2.95 % Expected Long-term Rate of Return 2019 6.63 % 6.73 % 4.62 % 2018 6.87 % 6.95 % 4.84 % 2017 6.86 % 6.98 % 4.52 % Rate of Compensation Increase 2019 — % 3.06 % 3.65 % 2018 3.40 % 3.28 % 3.62 % 2017 3.60 % 3.32 % 3.65 % The Company adjusts its discount rates at the end of each fiscal year based on yield curves of high-quality debt instruments over durations that match the expected benefit payouts of each plan. The discount rate used to calculate the benefit obligation and funded status of the Inactive Plan at December 31, 2019, was determined on a plan termination basis. The expected long-term rate of return assumption is based on the Company’s current and expected future portfolio mix by asset class, and expected nominal returns of these asset classes using an economic “building block” approach. Expectations for inflation and real interest rates are developed and various risk premiums are assigned to each asset class based primarily on historical performance. The expected long-term rate of return also gives consideration to the expected level of outperformance to be achieved on that portion of the Company’s investment portfolio under active management. The assumed rate of compensation increase reflects historical experience and management’s expectations regarding future salary and incentive increases. Medical trends The U.S. Retiree Health and Life Insurance Plan makes up approximately 96% of the Retiree Health liability. Therefore, the following information relates to the U.S. plan only. Healthcare Cost Trend Rate Pre-age 65 Post-age 65 2019 6.25 % 6.25 % 2018 6.50 % 6.50 % Ultimate Trend Rate Pre-age 65 Post-age 65 2019 4.50 % 4.50 % 2018 4.50 % 4.50 % Year at which the Rate Reaches the Ultimate Trend Rate Pre-age 65 Post-age 65 2019 2026 2026 2018 2026 2026 Increasing the assumed trend rate for healthcare costs by one percentage point would increase the accumulated postretirement benefit obligation (the APBO) and total service and interest cost component approximately $124 and $12, respectively. Decreasing the assumed trend rate for healthcare costs by one percentage point would decrease the APBO and total service and interest cost component approximately $115 and $11, respectively. Based on amendments to the U.S. plan approved in 1999, which became effective in 2003, cost increases borne by the Company are limited to the Urban CPI, as defined. Retirement plan assets The following table sets forth the weighted-average asset allocations of the Company’s retirement plans at 2019 and 2018, by asset category. Asset Category U.S. U.K. Canada Equity securities 2019 — % 42.1 % 67.9 % 2018 48.3 % 38.9 % 55.4 % Debt securities 2019 91.6 % 57.3 % 31.6 % 2018 38.4 % 60.5 % 44.0 % Alternative 2019 5.7 % — % — % 2018 13.3 % — % — % Cash and short-term investments 2019 2.7 % 0.6 % 0.5 % 2018 — % 0.6 % 0.6 % Total 2019 100.0 % 100.0 % 100.0 % 2018 100.0 % 100.0 % 100.0 % The Company employs a total-return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a desired level of risk. Alternative assets such as real estate funds, private equity funds and hedge funds may also be used to enhance expected long-term returns while improving portfolio diversification. Risk tolerance is established through consideration of plan liabilities, plan funded status and corporate financial condition. Investment risk is measured and monitored on an ongoing basis through periodic investment portfolio reviews and periodic asset/liability studies. The assets of the Company's U.S. pension plans were subject to de-risking measures during 2019 and reallocated to a more conservative mix of primarily fixed income investments pending the annuitization of the Inactive Plan expected in late 2020 or early 2021. At December 31, 2019, postretirement benefit plan assets totaled $1,696,401, of which $1,322,822 were assets of the U.S. Defined Benefit Plans. U.S. defined benefit plans The Company completed separate asset/liability studies for both the Active Plan and Inactive Plan during 2011 and adopted investment guidelines for each. These guidelines established a dynamic de-risking framework for gradually shifting the allocation of assets to long-duration domestic fixed income from equity and other asset categories, as the relative funding ratio of each plan increased over time. Beginning in 2019, the Company accelerated the de-risking measures in its U.S. defined benefit plans by making voluntary contributions totaling $200,000 to the plans and by reallocating plan assets to a more conservative mix of primarily fixed income investments. Subsequent to these de-risking actions, the Inactive Plan was terminated effective September 30, 2019. The current target allocation (midpoint) for the Inactive Plan investment portfolio is: Debt Securities – 97% and Cash – 3%. The current target allocation (midpoint) for the Active Plan investment portfolio is: Debt Securities – 97% and Cash – 3%. United Kingdom defined benefit plan The equity investments consist of direct ownership and funds and are diversified among U.K. and international stocks of small and large capitalizations. The current target allocation (midpoint) for the investment portfolio is: Equity Securities – 42% and Debt Securities – 58%. Canada defined benefit plan The equity investments consist of direct ownership and funds and are diversified among Canadian and international stocks of primarily large capitalizations and short to intermediate duration corporate and government bonds. The current target allocation (midpoint) for the investment portfolio is: Equity Securities – 55%, Debt Securities – 44% and Cash – 1%. Retiree health and life insurance plan assets The following table sets forth the weighted-average asset allocations by asset category of the Company’s retiree health and life insurance plan. Asset Category 2019 2018 Equity securities —% 48.3% Debt securities 91.6% 38.4% Alternative 5.7% 13.3% Cash 2.7% —% Total 100.0% 100.0% Contributions Based on current actuarial estimates, the Company anticipates that contributions to its defined benefit plans, excluding the Inactive Plan, will be approximately $25,000 in 2020. Contributions to the Inactive Plan of approximately $150,000 are expected to be made in late 2020 or early 2021 in order for the plan to be fully funded on a termination basis at the time of the annuity purchase. No assurances can be made, however, about funding requirements beyond 2020, as they will depend largely on actual investment returns, future actuarial assumptions, and timing of annuity purchases. Sonoco Savings and Retirement Plan The Sonoco Savings and Retirement Plan is a defined contribution retirement plan provided for certain of the Company’s U.S. employees. The plan is comprised of both an elective and non-elective component. The elective component of the plan, which is designed to meet the requirements of section 401(k) of the Internal Revenue Code, allows participants to set aside a portion of their wages and salaries for retirement and encourages saving by matching a portion of their contributions with contributions from the Company. The plan provides for participant contributions of 1% to 100% of gross pay. Since January 1, 2010, the Company has matched 50% on the first 4% of compensation contributed by the participant as pretax contributions which are immediately fully vested. The Company’s expenses related to the plan for 2019, 2018 and 2017 were approximately $13,400, $12,500 and $11,200, respectively. The non-elective component of the plan, the Sonoco Retirement Contribution (SRC), is available to certain employees who are not currently active participants in the Company’s U.S. qualified defined benefit pension plan. The SRC provides for an annual Company contribution of 4% of all eligible pay plus 4% of eligible pay in excess of the Social Security wage base to eligible participant accounts. Participants are fully vested after three years of service or upon reaching age 55, if earlier. The Company’s expenses related to the plan for 2019, 2018 and 2017 were approximately $23,752, $14,995 and $14,540, respectively. Cash contributions to the SRC totaled $14,573, $14,151 and $14,066 in 2019, 2018 and 2017, respectively, and are expected to total approximately $23,000 in 2020. Other plans The Company also provides retirement and postretirement benefits to certain other non-U.S. employees through various Company-sponsored and local government sponsored defined contribution arrangements. For the most part, the liabilities related to these arrangements are funded in the period they arise. The Company’s expenses for these plans were not material for all years presented. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The provision for taxes on income for the years ended December 31 consists of the following: 2019 2018 2017 Pretax income Domestic $ 217,098 $ 225,442 $ 168,180 Foreign 163,668 153,089 146,374 Total pretax income $ 380,766 $ 378,531 $ 314,554 Current Federal $ 14,933 $ 37,345 $ 120,398 State 2,565 6,164 5,623 Foreign 45,911 38,648 40,328 Total current $ 63,409 $ 82,157 $ 166,349 Deferred Federal $ 25,064 $ (5,571) $ (16,797) State 8,599 $ (738) 3,499 Foreign (3,803) (840) (6,462) Total deferred $ 29,860 $ (7,149) $ (19,760) Total taxes $ 93,269 $ 75,008 $ 146,589 Deferred tax (liabilities)/assets are comprised of the following at December 31: 2019 2018 Property, plant and equipment $ (91,207) $ (102,007) Intangibles (134,868) (178,883) Leases (79,332) — Gross deferred tax liabilities $ (305,407) $ (280,890) Retiree health benefits $ 2,405 $ 2,989 Foreign loss carryforwards 58,527 57,581 U.S. Federal loss and credit carryforwards 86,748 86,655 Capital loss carryforwards 2,703 2,757 Employee benefits 87,295 114,872 Leases 79,673 — Accrued liabilities and other 63,700 102,349 Gross deferred tax assets $ 381,051 $ 367,203 Valuation allowance on deferred tax assets $ (105,347) $ (103,289) Total deferred taxes, net $ (29,703) $ (16,976) The Company has total federal net operating loss carryforwards of approximately $77,200 remaining at December 31, 2019. These losses are limited based upon future taxable earnings of the respective entities and expire between 2030 and 2036. U.S. foreign tax credit carryforwards of approximately $70,400 exist at December 31, 2019 and expire in 2027. The Company is evaluating the feasibility of tax planning strategies which could allow a release of valuation allowance related to its foreign tax credits. A conclusion on this matter is expected to be reached in a subsequent quarter and it is reasonably possible that a benefit material to the Company's financial statements will be recognized at that time. Foreign subsidiary loss carryforwards of approximately $238,600 remain at December 31, 2019. Their use is limited to future taxable earnings of the respective foreign subsidiaries or filing groups. Approximately $212,400 of these loss carryforwards do not have an expiration date. Of the remaining foreign subsidiary loss carryforwards, approximately $9,200 expire within the next five years and approximately $17,000 expire between 2025 and 2039. Foreign subsidiary capital loss carryforwards of approximately $15,800 exist at December 31, 2019 and do not have an expiration date. Their use is limited to future capital gains of the respective foreign subsidiaries. Approximately $12,300 in tax value of state loss carryforwards and $17,600 of state credit carryforwards remain at December 31, 2019. These state loss and credit carryforwards are limited based upon future taxable earnings of the respective entities and expire between 2020 and 2039. State loss and credit carryforwards are reflected at their "tax" value, as opposed to the amount of expected gross deduction due to the vastly different apportionment and statutory tax rates applicable to the various entities and states in which the Company files. A reconciliation of the U.S. federal statutory tax rate to the actual consolidated tax expense is as follows: 2019 2018 2017 Statutory tax rate $ 79,961 21.0 % $ 79,491 21.0 % $ 110,094 35.0 % State income taxes, net of federal tax benefit 7,767 2.0 % 7,534 2.0 % 4,780 1.5 % Valuation allowance 3,174 0.8 % (14,902) (3.9) % (3,333) (1.1) % Tax examinations including change in reserve for uncertain tax positions (1,639) (0.4) % (3,076) (0.8) % 4,895 1.6 % Adjustments to prior year deferred taxes (499) (0.1) % (1,899) (0.5) % (1,415) (0.4) % Foreign earnings taxed at other than U.S. rates 5,083 1.3 % 8,224 2.2 % (16,233) (5.2) % Disposition of business — — % — — % 537 0.2 % Effect of tax rate changes 531 0.1 % (6,218) (1.6) % (22,183) (7.1) % Deduction related to qualified production activities — — % 341 0.1 % (5,384) (1.7) % Transition tax — — % 3,647 1.0 % 76,933 24.5 % Tax credits (13,310) (3.5) % (10,083) (2.7) % (1,197) (0.4) % Global intangible low-taxed income (GILTI) 12,340 3.2 % 12,878 3.4 % — — % Foreign-derived intangible income (1,225) (0.3) % (1,174) (0.3) % — — % Other, net 1,086 0.3 % 245 0.1 % (905) (0.3) % Total taxes $ 93,269 24.5 % $ 75,008 19.8 % $ 146,589 46.6 % The total amount of the one-time transition tax on certain accumulated foreign earnings as part of the Tax Cuts and Jobs Act ("Tax Act") was $80,580. Under the provisions of the Tax Act, the transition tax is payable in installments over a period of 8 years. The first two installments were paid in 2018 and 2019 with the filing of the Company's 2017 and 2018 federal income tax returns. The liability is further reduced by the deemed overpayment of federal income taxes. The remaining obligation of $46,295 is included in "Other Liabilities" in the Company's Consolidated Balance Sheet at December 31, 2019. The change in “Tax examinations including change in reserve for uncertain tax positions” is shown net of associated deferred taxes and accrued interest. Included in the change are net increases in reserves for uncertain tax positions of approximately $1,800, $1,700 and $2,600 for uncertain items arising in 2019, 2018 and 2017, respectively, combined with adjustments related to prior year items, primarily decreases related to lapses of statutes of limitations in international, federal and state jurisdictions as well as overall changes in facts and judgment. These adjustments decreased the reserve by a total of approximately $(3,500), $(2,900) and $(2,300) in 2019, 2018 and 2017, respectively. In many of the countries in which the Company operates, earnings are taxed at rates different than in the U.S. This difference is reflected in “Foreign earnings taxed at other than U.S. rates” along with other items, if any, that impacted taxes on foreign earnings in the periods presented. The benefits included in “Adjustments to prior year deferred taxes” for each of the years presented consist primarily of adjustments to deferred tax assets and liabilities arising from changes in estimates. The 2017 benefit included in the "Effect of tax rate changes for the year" relates primarily to changes made as a result of the Tax Act. The 2018 benefits included in "Valuation allowance" includes a benefit of $16,100 related to the revaluation of the valuation allowance on foreign tax credits due to the Tax Act. Of the $13,310 of tax credits for 2019, $10,484 directly offsets the $12,340 of GILTI tax, resulting in a net GILTI tax of $1,856. This net GILTI tax includes a favorable adjustment for revising the estimate of net GILTI tax due on the 2018 tax return of $2,097. The Company maintains its assertion that its undistributed foreign earnings are indefinitely reinvested and, accordingly, has not recorded any deferred income tax liabilities that would be due if those earnings were repatriated. As of December 31, 2019, these undistributed earnings total $916,457. While the majority of these earnings have already been taxed in the U.S., a portion would be subject to foreign withholding and U.S. income taxes and credits if distributed. Computation of the deferred tax liability associated with unremitted earnings deemed to be indefinitely reinvested is not practicable at this time. Reserve for uncertain tax positions The following table sets forth the reconciliation of the gross amounts of unrecognized tax benefits at the beginning and ending of the periods indicated: 2019 2018 2017 Gross Unrecognized Tax Benefits at January 1 $ 14,400 $ 17,100 $ 17,700 Increases in prior years’ unrecognized tax benefits — — 700 Decreases in prior years’ unrecognized tax benefits (1,300) (700) (2,400) Increases in current year's unrecognized tax benefits 1,300 1,200 1,600 Decreases in unrecognized tax benefits from the lapse of statutes of limitations (2,300) (2,600) (300) Settlements 100 (600) (200) Gross Unrecognized Tax Benefits at December 31 $ 12,200 $ 14,400 $ 17,100 Of the unrecognized tax benefit balances at December 31, 2019 and December 31, 2018, approximately $11,400 and $13,500, respectively, would have an impact on the effective tax rate if ultimately recognized. Interest and/or penalties related to income taxes are reported as part of income tax expense. The Company had approximately $2,000 and $2,100 accrued for interest related to uncertain tax positions at December 31, 2019 and December 31, 2018, respectively. Tax expense for the year ended December 31, 2019, includes approximately $600 of interest expense, which is comprised of an interest benefit of approximately $900 related to the adjustment of prior years' items and interest expense of $1,500 on unrecognized tax benefits. The amounts listed above for accrued interest and interest expense do not reflect the benefit of a federal tax deduction which would be available if the interest were ultimately paid. Activity for the year also included $700 of settlements. The Company and/or its subsidiaries file federal, state and local income tax returns in the United States and various foreign jurisdictions. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years before 2012. The Company believes that it is reasonably possible that the amount reserved for uncertain tax positions at December 31, 2019 will decrease by approximately $900 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 effective tax rate may fluctuate significantly on a quarterly basis. The Company has operations in many countries outside of the United States and the taxes paid 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 loss of those benefits would have a material effect on the Company's overall effective tax rate. As previously disclosed, the Company received a draft Notice of Proposed Adjustment (“NOPA”) from the Internal Revenue Service (IRS) in February 2017 proposing an adjustment to income for the 2013 tax year based on the IRS's recharacterization of a distribution of an intercompany note made in 2012, and the subsequent repayment of the note over the course of 2013, as if it were a cash distribution made in 2013. In March 2017, the Company received a draft NOPA proposing penalties of $18,000 associated with the IRS’s recharacterization, as well as an Information Document Request (“IDR”) requesting the Company’s analysis of why such penalties should not apply. The Company responded to this IDR in April 2017. On October 5, 2017, the Company received two revised draft NOPAs proposing the same adjustments and penalties as in the prior NOPAs. On November 14, 2017, the Company received two final NOPAs proposing the same adjustments and penalties as in the prior draft NOPAs. On November 20, 2017, the Company received a Revenue Agent's Report (“RAR”) that included the same adjustments and penalties as in the prior NOPAs. At the time of the distribution in 2012, it was characterized as a dividend to the extent of earnings and profits, with the remainder as a tax free return of basis and taxable capital gain. As the IRS proposes to recharacterize the distribution, the entire distribution would be characterized as a dividend. The incremental tax liability associated with the income adjustment proposed in the RAR would be approximately $89,000, excluding interest and the previously referenced penalties. On January 22, 2018, the Company filed a protest to the proposed deficiency with the IRS. The Company received a rebuttal of its protest from the IRS on July 10, 2018, and the matter has now been referred to the Appeals Division of the IRS. The Company had a pre-conference hearing with IRS Appeals during the second quarter of 2019, and has had continued discussions with IRS Appeals throughout the year. If the matter is not resolved in IRS Appeals, the next step would be to file a petition in Tax Court. The Company strongly believes the position of the IRS with regard to this matter is inconsistent with applicable tax laws and existing Treasury regulations, and that the Company's previously reported income tax provision for the year in question is appropriate. However, there can be no assurance that this matter will be resolved in the Company's favor. Regardless of whether the matter is resolved in the Company's favor, the final resolution of this matter could be expensive and time consuming to defend and/or settle. While the Company believes that the amount of tax originally paid with respect to this distribution is correct, and accordingly has not provided additional reserve for tax uncertainty, there is still a possibility that an adverse outcome of the matter could have a material effect on its results of operations and financial condition. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company records revenue when control is transferred to the customer, which is either upon shipment or over time in cases where the Company is entitled to payment with margin for products produced that are customer specific without alternative use. The Company recognizes over time revenue under the input method as goods are produced. Revenue that is recognized at a point in time is recognized when the customer obtains control of the goods. Customers obtain control either when goods are delivered to the customer facility, if the Company is responsible for arranging transportation, or when picked up by the customer's designated carrier. The Company commonly enters into Master Supply Arrangements (MSA) with customers to provide goods and/or services over specific time periods. Customers submit purchase orders with quantities and prices to create a contract for accounting purposes. Shipping and handling expenses are included in "Cost of Sales," and freight charged to customers is included in "Net Sales" in the Company's Consolidated Statements of Income. The Company has rebate agreements with certain customers. These rebates are recorded as reductions of sales and are accrued using sales data and rebate percentages specific to each customer agreement. Accrued customer rebates are included in "Accrued expenses and other" in the Company's 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 after the originating sale. The following table sets forth information about 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 Consolidated Balance Sheets. December 31, 2019 December 31, 2018 Contract Assets $ 56,364 $ 48,786 Contract Liabilities (17,047) (18,533) Significant changes in the contract assets and liabilities balances during the period were as follows: December 31, 2019 December 31, 2018 Contract Asset Contract Liability Contract Asset Contract Liability Beginning balance $ 48,786 $ (18,533) $ 45,877 $ (17,736) Revenue deferred or rebates accrued — (29,062) — (19,730) Recognized as revenue — 8,473 — 1,652 Rebates paid to customers — 22,075 — 17,281 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 51,797 — 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 — — — — Contract asset acquired in a business combination 4,567 — — — Ending balance $ 56,364 $ (17,047) $ 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 18. The following tables set forth information about revenue disaggregated by primary geographic regions for the years ended December 31, 2019 and 2018. The tables also include a reconciliation of disaggregated revenue with reportable segments. Twelve Months Ended December 31, 2019 Consumer Packaging Display and Packaging Paper and Industrial Converted Products Protective Solutions Total Primary geographical markets: United States $ 1,659,071 $ 246,735 $ 1,095,437 $ 407,216 $ 3,408,459 Europe 407,759 301,866 346,102 23,039 1,078,766 Canada 108,848 — 117,201 — 226,049 Asia Pacific 70,504 — 277,385 2,370 350,259 Other 87,204 5,524 138,614 79,332 310,674 Total $ 2,333,386 $ 554,125 $ 1,974,739 $ 511,957 $ 5,374,207 Twelve Months Ended December 31, 2018 Consumer Packaging Display and Packaging Paper and Industrial Converted Products Protective Solutions Total Primary geographical markets: United States $ 1,676,204 $ 290,295 $ 1,108,735 $ 415,135 $ 3,490,369 Europe 418,129 294,156 354,705 25,664 1,092,654 Canada 115,183 — 131,025 — 246,208 Asia Pacific 69,242 — 178,509 3,548 251,299 Other 81,241 7,858 137,979 83,330 310,408 Total $ 2,359,999 $ 592,309 $ 1,910,953 $ 527,677 $ 5,390,938 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 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 the 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 $1,611 on remediation of the Spartanburg site. Based on favorable developments at the Spartanburg site, the Company reduced its estimated environmental reserve by $10,000 during the third quarter of 2019 in order to reflect its revised best estimate of what it is likely to pay in order to complete the remediation. This adjustment resulted in a $10,000 reduction in "Selling, general and administrative expenses" in the Company's Consolidated Statement of Income for the year ended December 31, 2019. At December 31, 2019 and 2018, the Company's accrual for environmental contingencies related to the Spartanburg site totaled $5,789 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 December 31, 2019 and 2018, the Company's accrual for these other sites totaled $2,938 and $4,136, respectively. Summary As of December 31, 2019 and 2018, the Company (and its subsidiaries) had accrued $8,727 and $20,100, respectively, related to environmental contingencies. These accruals are included in “Accrued expenses and other” on the Company’s Consolidated Balance Sheets. Other legal and regulatory matters As described more fully in Note 14 to these Consolidated Financial Statements, the Company has received a final Revenue Agent's Report ("RAR") from the IRS proposing an adjustment to income for the 2013 tax year. The incremental tax liability associated with the proposed adjustment would be approximately $89,000, excluding interest and penalties. On January 22, 2018, the Company filed a protest to the proposed deficiency with the IRS. The Company received a rebuttal of its protest from the IRS on July 10, 2018, and the matter has now been referred to the Appeals Division of the IRS. The Company had a pre-conference hearing with IRS Appeals during the second quarter of 2019, and has had continued discussions with IRS Appeals throughout the year. If the matter is not resolved in IRS appeals, the next step would be to file a petition in Tax Court. The Company strongly believes the position of the IRS with regard to this matter is inconsistent with applicable tax laws and existing Treasury regulations, and that the Company's previously reported income tax provision for the year in question is appropriate. However, there can be no assurance that this matter will be resolved in the Company's favor. Regardless of whether the matter is resolved in the Company's favor, the final resolution of this matter could be expensive and time consuming to defend and/or settle. While the Company believes that the amount of tax originally paid with respect to this distribution is correct, and accordingly has not provided additional reserve for tax uncertainty, there is still a possibility that an adverse outcome of the matter could have a material effect on its results of operations and financial condition. In addition to those described above, the Company is subject to other various legal proceedings, claims and litigation arising in the normal course of business. While the outcome of these matters could differ from management’s expectations, 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. Commitments As of December 31, 2019, the Company had long-term obligations to purchase electricity and steam, which it uses in its production processes, as well as long-term purchase commitments for certain raw materials, principally old corrugated containers. These purchase commitments require the Company to make total payments of approximately $99,323, as follows: $39,707 in 2020; $20,960 in 2021; $23,134 in 2022, $9,325 in 2023 and a total of $6,197 from 2024 through 2028. |
Shareholders_ equity and earnin
Shareholders’ equity and earnings per share | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' equity and earnings per share | Shareholders’ equity and earnings per share Stock repurchases The Company occasionally repurchases shares of its common stock to satisfy employee tax withholding obligations in association with the exercise of stock appreciation rights, restricted stock, and performance-based stock awards. These repurchases, which are not part of a publicly announced plan or program, totaled 169,290 shares during 2019, 266,652 shares during 2018, and 119,349 shares during 2017, at a cost of $9,608, $14,561 and $6,335, respectively. On February 10, 2016, the Company’s Board of Directors authorized the repurchase of up to 5,000,000 shares of the Company’s common stock. During 2016, a total of 2,030,389 shares were repurchased under this authorization at a cost of $100,000. No shares were repurchased during 2017 and 2018. Accordingly, at December 31, 2019, a total of 2,969,611 shares remain available for repurchase under this authorization. Earnings per share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): 2019 2018 2017 Numerator: Net income attributable to Sonoco $ 291,785 $ 313,560 $ 175,345 Denominator: Weighted average common shares outstanding 100,742 100,539 100,237 Dilutive effect of stock-based compensation 434 477 615 Diluted outstanding shares 101,176 101,016 100,852 Per common share: Net income attributable to Sonoco: Basic $ 2.90 $ 3.12 $ 1.75 Diluted $ 2.88 $ 3.10 $ 1.74 Cash dividends $ 1.70 $ 1.62 $ 1.54 No adjustments were made to reported net income in the computation of earnings per share. 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. The average number of shares that were not dilutive and therefore not included in the computation of diluted income per share was as follows for the years ended December 31, 2019, 2018 and 2017 (in thousands): 2019 2018 2017 Anti-dilutive stock appreciation rights 475 786 487 These stock appreciation rights may become dilutive in future periods if the market price of the Company’s common stock appreciates. Noncontrolling interests In 1994, the Company entered into a joint venture agreement with two partners in Asia for the manufacturing and marketing of products in the Asian markets. Prior to December 31, 2018, the Company owned a controlling interest of 79.25% of the joint venture and consolidated the net assets of the Asia joint venture. On December 31, 2018, the Company acquired the 19.08% ownership interest of PFE Hong Kong Limited, one of the joint venture partners, for $35,000 in cash, bringing the Company’s total ownership in the Asia joint venture to 98.33%. As a result of the purchase, the Company wrote off the $11,695 book value of the noncontrolling interest and recorded a $23,305 reduction in Capital in Excess of Stated Value. One of the Company's directors, Harry A. Cockrell, is a principal shareholder of PFE Hong Kong Limited. On October 1, 2018, the Company completed the acquisition of the remaining 70% interest in Conitex Sonoco (see Note 3). The acquisition of Conitex Sonoco included joint ventures in Indonesia and China in which the Company owns a controlling interest. The noncontrolling interests relating to these joint ventures were recorded on the opening balance sheet at their fair value of $2,655. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 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-assurance packaging. Restructuring charges, asset impairment charges, gains from the disposition of businesses, insurance settlement gains, acquisition-related costs, non-operating pension costs, interest expense and interest income are included in income before income taxes under “Corporate.” The following table sets forth financial information about each of the Company's business segments: Years ended December 31 Consumer Packaging Display and Packaging Paper and Protective Solutions Corporate Consolidated Total Revenue 2019 $ 2,338,881 $ 558,747 $ 2,111,491 $ 513,584 $ — $ 5,522,703 2018 2,363,292 595,855 2,042,732 529,324 — 5,531,203 2017 2,129,022 511,099 2,007,321 540,665 — 5,188,107 Intersegment Sales 1 2019 $ 5,495 $ 4,622 $ 136,752 $ 1,627 $ — $ 148,496 2018 3,293 3,546 131,779 1,647 — 140,265 2017 5,557 2,863 141,141 1,896 — 151,457 Sales to Unaffiliated Customers 2019 $ 2,333,386 $ 554,125 $ 1,974,739 $ 511,957 $ — $ 5,374,207 2018 2,359,999 592,309 1,910,953 527,677 — 5,390,938 2017 2,123,465 508,236 1,866,180 538,769 — 5,036,650 Income Before Income Taxes 2 2019 $ 228,416 $ 27,723 $ 219,052 $ 50,201 $ (144,626) $ 380,766 2018 224,505 13,291 211,122 42,902 (113,289) 378,531 2017 255,759 2,632 161,591 42,357 (147,785) 314,554 Identifiable Assets 3 2019 $ 2,239,674 $ 452,155 $ 1,701,902 $ 580,411 $ 152,147 $ 5,126,289 2018 1,993,417 440,972 1,472,148 535,443 141,485 4,583,465 2017 1,890,516 480,892 1,346,391 552,425 287,497 4,557,721 Depreciation, Depletion and Amortization 4 2019 $ 111,919 $ 14,926 $ 85,619 $ 26,676 $ — $ 239,140 2018 116,841 18,020 74,434 26,950 — 236,245 2017 98,882 17,090 74,850 26,803 — 217,625 Capital Expenditures 2019 $ 64,590 $ 5,065 $ 112,308 $ 6,880 $ 7,091 $ 195,934 2018 66,659 19,849 91,423 5,879 8,764 192,574 2017 63,617 23,908 61,443 19,031 20,914 188,913 1 Intersegment sales are recorded at a market-related transfer price. 2 Included in Corporate above are interest expense, interest income, restructuring/asset impairment charges, property insurance settlement gains, non-operating pension costs, acquisition-related charges, and other non-operational income and expenses associated with the following segments: Consumer Packaging Display Paper and Industrial Converted Products Protective Solutions Corporate Total 2019 $ 41,155 $ (7,358) $ 5,270 $ 9,083 $ 96,476 $ 144,626 2018 18,391 19,046 11,773 1,529 62,550 113,289 2017 9,990 2,082 24,281 3,071 108,361 147,785 The remaining amounts reported as Corporate consist of interest expense, interest income, non-operating pension costs, and other non-operational income and expenses not associated with a particular segment. 3 Identifiable assets are those assets used by each segment in its operations. Corporate assets consist primarily of cash and cash equivalents, investments in affiliates, headquarters facilities, deferred income taxes and prepaid expenses. 4 Depreciation, depletion and amortization incurred at Corporate are allocated to the reportable segments. Geographic regions Sales to unaffiliated customers and long-lived assets by geographic region are as follows: 2019 2018 2017 Sales to Unaffiliated Customers United States $ 3,408,459 $ 3,490,369 $ 3,263,975 Europe 1,078,766 1,092,654 981,178 Canada 226,049 246,208 245,992 All other 660,933 561,707 545,505 Total $ 5,374,207 $ 5,390,938 $ 5,036,650 Long-lived Assets United States $ 2,177,918 $ 1,953,391 $ 1,962,196 Europe 648,648 641,600 659,615 Canada 107,470 113,782 120,062 All other 224,783 241,767 108,395 Total $ 3,158,819 $ 2,950,540 $ 2,850,268 Sales are attributed to countries/regions based upon the plant location from which products are shipped. Long-lived assets are comprised of property, plant and equipment, goodwill, intangible assets and investment in affiliates (see Notes 6 and 8). |
Accumulated other comprehensive
Accumulated other comprehensive loss | 12 Months Ended |
Dec. 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 accumulated other comprehensive loss, net of tax as applicable, for the years ended December 31, 2019 and 2018: Foreign Currency Items Defined Benefit Pension Items Gains and Losses on Cash Flow Hedges Accumulated Other Comprehensive Loss Balance at December 31, 2017 $ (198,495) $ (467,136) $ (641) $ (666,272) Other comprehensive income/(loss) before reclassifications (53,504) (50,232) (1,380) (105,116) Amounts reclassified from accumulated other comprehensive loss to net income 897 29,988 71 30,956 Amounts reclassified from accumulated other comprehensive loss to fixed assets — — (305) (305) Other comprehensive income/(loss) (52,607) (20,244) (1,614) (74,465) Amounts reclassified from accumulated other comprehensive loss to retained earnings — — (176) (176) Balance at December 31, 2018 $ (251,102) $ (487,380) $ (2,431) $ (740,913) Other comprehensive income/(loss) before reclassifications 9,108 (111,493) 2,061 (100,324) Amounts reclassified from accumulated other comprehensive loss to net income — 24,460 81 24,541 Amounts reclassified from accumulated other comprehensive loss to fixed assets — — (107) (107) Other comprehensive income/(loss) 9,108 (87,033) 2,035 (75,890) Balance at December 31, 2019 $ (241,994) $ (574,413) $ (396) $ (816,803) The following table summarizes the amounts reclassified from accumulated other comprehensive loss and the affected line items in the consolidated statements of net income for the years ended December 31, 2019 and 2018: Details about Accumulated Other Comprehensive Loss Components Twelve Months Ended Twelve Months Ended Affected Line Item in the Consolidated Statements of Net Income Foreign currency items Amounts reclassified to net income $ — $ (897) Selling, general and administrative expenses — (897) Defined benefit pension items (see Note 13) Effect of settlement loss (2,377) (730) Non-operating pension cost Effect of curtailment loss — (256) Non-operating pension cost Amortization of defined benefit pension items (30,382) (36,689) Non-operating pension cost (32,759) (37,675) 8,299 7,687 Provision for income taxes (24,460) (29,988) Net income Gains and losses on cash flow hedges (see Note 10) Foreign exchange contracts 1,381 (203) Net Sales Foreign exchange contracts (1,758) (20) Cost of sales Commodity contracts 270 115 Cost of sales (107) (108) Income before income taxes 26 37 Provision for income taxes (81) (71) Net income Total reclassifications for the period $ (24,541) $ (30,956) Net income The following table summarizes the tax (expense) benefit amounts for the other comprehensive loss components for the years ended December 31, 2019 and 2018: For the year ended December 31, 2019 For the year ended December 31, 2018 Before Tax Amount Tax (Expense) Benefit After Tax Amount Before Tax Amount Tax (Expense) Benefit After Tax Amount Foreign currency items: Other comprehensive income/(loss) before reclassifications $ 9,108 $ — $ 9,108 $ (53,504) $ — $ (53,504) Amounts reclassified from accumulated other comprehensive income/(loss) to net income — — — 897 — 897 Gains and losses on foreign currency items: 9,108 — 9,108 (52,607) — (52,607) Defined benefit pension items: Other comprehensive income/(loss) before reclassifications (147,948) 36,455 (111,493) (63,259) 13,027 (50,232) Amounts reclassified from accumulated other comprehensive income/(loss) to net income 32,759 (8,299) 24,460 37,675 (7,687) 29,988 Net other comprehensive income/(loss) from defined benefit pension items (115,189) 28,156 (87,033) (25,584) 5,340 (20,244) Gains and losses on cash flow hedges: Other comprehensive income/(loss) before reclassifications 2,711 (650) 2,061 (2,096) 716 (1,380) Amounts reclassified from accumulated other comprehensive income/(loss) to net income 107 (26) 81 108 (37) 71 Amounts reclassified from accumulated other comprehensive income/(loss) to fixed assets (107) — (107) (305) — (305) Net other comprehensive income/(loss) from cash flow hedges 2,711 (676) 2,035 (2,293) 679 (1,614) Other comprehensive income/(loss) $ (103,370) $ 27,480 $ (75,890) $ (80,484) $ 6,019 $ (74,465) The change in defined benefit plans includes pretax changes of $(781) and $(71) during the years ended December 31, 2019 and 2018, related to one of the Company’s equity method investments. |
Selected quarterly financial da
Selected quarterly financial data | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Selected quarterly financial data | Selected quarterly financial data The following table sets forth selected quarterly financial data of the Company: (unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter 2019 Net sales $ 1,351,705 $ 1,359,721 $ 1,353,931 $ 1,308,850 Gross profit 270,121 275,336 265,485 246,887 Restructuring/Asset impairment charges 10,672 13,355 6,615 29,238 Net income attributable to Sonoco 73,663 81,159 92,064 44,899 Per common share: Net income attributable to Sonoco: - basic $ 0.73 $ 0.81 $ 0.91 $ 0.45 - diluted $ 0.73 $ 0.80 $ 0.91 $ 0.44 Cash dividends - common $ 0.41 $ 0.43 $ 0.43 $ 0.43 Market price - high $ 61.79 $ 66.23 $ 66.57 $ 62.77 - low $ 51.29 $ 59.65 $ 55.44 $ 55.12 2018 Net sales $ 1,304,187 $ 1,366,373 $ 1,364,762 $ 1,355,616 Gross profit 250,602 276,460 259,636 254,308 Restructuring/Asset impairment charges 3,063 3,567 22,061 11,380 Net income attributable to Sonoco 74,055 89,412 72,415 77,678 Per common share: Net income attributable to Sonoco: - basic $ 0.74 $ 0.89 $ 0.72 $ 0.78 - diluted $ 0.73 $ 0.88 $ 0.72 $ 0.77 Cash dividends - common $ 0.39 $ 0.41 $ 0.41 $ 0.41 Market price - high $ 55.43 $ 53.80 $ 58.69 $ 58.31 - low $ 46.55 $ 46.94 $ 51.18 $ 50.30 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of valuation and qualifying accounts disclosure | Column A Column B Column C - Additions Column D Column E Description Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Deductions Balance at End of Year 2019 Allowance for Doubtful Accounts $ 11,692 $ 4,320 $ 322 1 $ 1,952 2 $ 14,382 LIFO Reserve 18,854 1,349 3 — — 20,203 Valuation Allowance on Deferred Tax Assets 103,289 2,662 (1,116) 4 (512) 5 105,347 2018 Allowance for Doubtful Accounts $ 9,913 $ 3,471 $ (425) 1 $ 1,267 2 $ 11,692 LIFO Reserve 17,632 1,222 3 — — 18,854 Valuation Allowance on Deferred Tax Assets 47,199 (11,187) 70,993 4 3,716 5 103,289 2017 Allowance for Doubtful Accounts $ 10,884 $ 1,439 $ 243 1 $ 2,653 2 $ 9,913 LIFO Reserve 17,319 313 3 — — 17,632 Valuation Allowance on Deferred Tax Assets 49,797 6,967 (2,365) 4 7,200 5 47,199 1 Includes translation adjustments and other insignificant adjustments. 2 Includes amounts written off. 3 Includes adjustments based on pricing and inventory levels. 4 Includes translation adjustments and increases to deferred tax assets which were previously fully reserved. 5 Includes utilization of capital loss carryforwards, net operating loss carryforwards and other deferred tax assets. All other schedules not included have been omitted because they are not required, are not applicable or the required information is given in the financial statements or notes thereto. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The Consolidated Financial Statements include the accounts of Sonoco Products Company and its majority-owned subsidiaries (the “Company” or “Sonoco”) after elimination of intercompany accounts and transactions. |
Estimates and assumptions | Estimates and assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue recognition | Revenue recognition Beginning in 2018, the Company records revenue when control is transferred to the customer, which is either upon shipment or over time in cases where the Company is entitled to payment with margin for products produced that are customer specific without alternative use. The Company recognizes over time revenue under the input method as goods are produced. Revenue that is recognized at a point in time is recognized when the customer obtains control of the goods. Customers obtain control either when goods are delivered to the customer facility, if the Company is responsible for arranging transportation, or when picked up by the customer's designated carrier. The Company commonly enters into Master Supply Arrangements (MSA) with customers to provide goods and/or services over specific time periods. Customers submit purchase orders with quantities and prices to create a contract for accounting purposes. Shipping and handling expenses are considered a fulfillment cost, and included in "Cost of Sales," and freight charged to customers is included in "Net Sales" in the Company's Consolidated Statements of Income. Prior to 2018, the Company recorded revenue when title and risk of ownership passed to the customer, and when persuasive evidence of an arrangement existed, delivery had occurred or services had been rendered, the sales price to the customer was fixed or determinable and when collectibility was reasonably assured. Certain judgments, such as provisions for estimates of sales returns and allowances, were required in the application of the Company’s revenue policy and, therefore, were included in the results of operations in its Consolidated Financial Statements. Shipping and handling expenses were included in “Cost of sales,” and freight charged to customers was included in “Net sales” in the Company’s Consolidated Statements of Income for the year ended December 31, 2017. 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 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 after the originating sale. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts The Company’s trade accounts receivable are non-interest bearing and are recorded at the invoiced amounts. The allowance for doubtful accounts represents the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. Provisions are made to the allowance for doubtful accounts at such time that collection of all or part of a trade account receivable is in question. The allowance for doubtful accounts is monitored on a regular basis and adjustments are made as needed to ensure that the account properly reflects the Company’s best estimate of uncollectible trade accounts receivable. Account balances are charged off against the allowance for doubtful accounts when the Company determines that the receivable will not be recovered. |
Research and development | Research and developmentResearch and development costs are charged to expense as incurred and include salaries and other directly related expenses. |
Restructuring and asset impairment | Restructuring and asset impairmentCosts associated with exit or disposal activities are recognized when the liability is incurred. If assets become impaired as a result of a restructuring action, the assets are written down to fair value, less estimated costs to sell, if applicable. A number of significant estimates and assumptions are involved in the determination of fair value. The Company considers historical experience and all available information at the time the estimates are made; however, the amounts that are ultimately realized upon the sale of divested assets may differ from the estimated fair values reflected in the Company’s Consolidated Financial Statements. |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents are composed of highly liquid investments with an original maturity to the Company of generally three months or less when purchased. Cash equivalents are recorded at cost, which approximates market. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. The last-in, first-out (LIFO) method is used for the valuation of certain of the Company’s domestic inventories, primarily metal, internally manufactured paper and paper purchased from third parties. The LIFO method of accounting was used to determine the carrying costs of a pproximately 13% and 14% o f total inventories at December 31, 2019 and 2018, respectively. The remaining inventories are determined on the first-in, first-out (FIFO) method. If the FIFO method of accounting had been used for all inventories, total inventory would have been hi gher by $20,203 and $18,854 at December 31, 2019 and 2018, respectively. |
Property, plant and equipment | Property, plant and equipment Plant assets represent the original cost of land, buildings and equipment, less depreciation, computed under the straight-line method over the estimated useful lives of the assets, and are reviewed for impairment whenever events indicate the carrying value may not be recoverable. Equipment lives generally range from 3 to 11 years, and buildings from 15 to 40 years. Timber resources are stated at cost. Depletion is charged to operations based on the estimated number of units of timber cut during the year. |
Goodwill and other intangible assets | Goodwill and other intangible assets The Company assesses its goodwill for impairment annually during the third quarter, or from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. In performing the impairment test, the Company compares the fair value of the reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This quantitative test considers factors such as the amount by which estimated fair value exceeds current carrying value, current year operating performance as compared to prior projections, and implied fair values from comparable trading and transaction multiples. The calculated reporting unit estimated fair values reflect a number of significant management assumptions and estimates including the Company's forecast of sales, profit margins, and discount rate. Changes in these assumptions could materially impact the estimated fair values. When the Company estimates the fair value of a reporting unit, it does so using a discounted cash flow model based on projections of future years' operating results and associated cash flows, corroborated by comparable trading and transaction multiples. The Company's projections incorporate management's best estimates of the expected future results, which include expectations related to new and retained business and future operating margins. Projected future cash flows are then discounted to present value using a discount rate management believes is commensurate with the risks inherent in the cash flows. If the fair value of a reporting unit exceeds the carrying value of the reporting unit’s assets, including goodwill, there is no impairment. If the carrying value of the reporting unit exceeds the fair value of that reporting unit, an impairment charge is recognized for the excess. Goodwill is not amortized. Intangible assets are amortized, usually on a straight-line basis, over their respective useful lives, which generally range from 3 to 40 years. The Company evaluates its intangible assets for impairment whenever indicators of impairment exist. The Company has no intangibles with indefinite lives. |
Income taxes | Income taxesThe Company provides for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting requirements and tax laws. Assets and liabilities are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. |
Derivatives | Derivatives The Company elected to early adopt Accounting Standards Update (ASU) 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities," as of January 1, 2018. The Company uses derivatives to mitigate the effect of fluctuations in some of its raw material and energy costs, foreign currencies, and, from time to time, interest rates. The Company purchases commodities such as recovered paper, metal, resins and energy, generally at market or at fixed prices that are established with the vendor as part of the purchase process for quantities expected to be consumed in the ordinary course of business. The Company may enter into commodity futures or swaps to manage the effect of price fluctuations. The Company may use foreign currency forward contracts and other risk management instruments to manage exposure to changes in foreign currency cash flows and the translation of monetary assets and liabilities on the Company’s consolidated financial statements. The Company is exposed to interest-rate fluctuations as a result of using debt as a source of financing for its operations. The Company may from time to time use traditional, unleveraged interest rate swaps to adjust its mix of fixed and variable rate debt to manage its exposure to interest rate movements. The Company records its derivatives as assets or liabilities on the balance sheet at fair value using published market prices or estimated values based on current price and/or rate quotes and discounted estimated cash flows. Changes in the fair value of derivatives are recognized either in net income or in other comprehensive income, depending on the designated purpose of the derivative. Amounts in accumulated other comprehensive income are reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. It is the Company’s policy not to speculate in derivative instruments. |
Business combinations | Business combinations The Company’s acquisitions of businesses are accounted for in accordance with ASC 805, "Business Combinations." The Company recognizes the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquired business at their fair values as of the date of acquisition. Goodwill is measured as the excess of consideration transferred, also measured at fair value, over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. The acquisition method of accounting requires us to make significant estimates and assumptions regarding the fair values of the elements of a business combination as of the date of acquisition, including the fair values of identifiable intangible assets, deferred tax asset valuation allowances, liabilities including those related to debt, pensions and other postretirement plans, uncertain tax positions, contingent consideration and contingencies. This method also requires us to refine these estimates over a measurement period not to exceed one year to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. If we are required to adjust provisional amounts that we have recorded for the fair values of assets and liabilities in connection with acquisitions, these adjustments could have a material impact on our financial condition and results of operations. Significant estimates and assumptions in estimating the fair value of acquired customer relationships, technology, and other identifiable intangible assets include future cash flows that we expect to generate from the acquired assets. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, we could record impairment charges. In addition, we have estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If our estimates of the economic lives change, depreciation or amortization expenses could be increased or decreased, or the acquired asset could be impaired. |
Reportable segments | Reportable segments The Company identifies its reportable segments by evaluating the level of detail reviewed by the chief operating decision maker, gross profit margins, nature of products sold, nature of the production processes, type and class of customer, methods used to distribute products, and nature of the regulatory environment. Of these factors, the Company believes that the most significant in determining the aggregation of operating segments are the nature of the products and the type of customers served. |
Contingencies | Contingencies Pursuant to U.S. GAAP for accounting for contingencies, accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and that the amounts are reasonably estimable. Amounts so accrued are not discounted. |
New accounting pronouncements | New accounting pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2019-12 "Income Taxes," which provides for certain updates to reduce complexity in the accounting for income taxes, including the utilization of the incremental approach for intraperiod tax allocation, among others. The amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company does not expect the implementation of ASU 2019-12 to have a material effect on its consolidated financial statements. In December 2018, the FASB issued 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 rates 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 August 2018, the FASB issued ASU 2018-14 "Compensation-Retirement Benefits-Defined Benefit Plans-General," which modifies certain disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in ASU 2018-14 are effective for fiscal years beginning after December 15, 2020. The Company does not expect the implementation of ASU 2019-12 to have a material effect on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," which requires measurement and recognition of expected versus incurred credit losses for financial assets held. The measurement of expected credit losses should be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within those annual periods. The Company will adopt this standard using a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings of approximately $200 as of January 1, 2020. The Company does not expect the implementation of ASU 2016-13 to have a material effect on its consolidated financial statements. In January 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 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 and, as also provided for under the standard, has made an accounting policy election to exclude from the balance sheet leases with a term of 12 months or less. The Company also elected 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 the 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. Upon the adoption of ASU 2016-02, the Company recorded on its consolidated balance sheet right of use assets totaling $336,083 and lease liabilities totaling $344,362, as well as a cumulative effect adjustment to retained earnings of $6,771 and a $1,508 reduction to deferred tax liabilities. Other than the pronouncements discussed above, 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 December 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 measurement | Fair value is defined as 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 at the measurement date. 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: |
Fair value of financial instruments | As discussed i n Note 10, the Company uses derivatives to mitigate some of 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 and the assets invested in various exchange traded mutual funds. These assets are measured using quoted prices in accessible active markets for identical assets. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Affiliated companies over which the Company exercised significant influence | Affiliated companies over which the Company exercised a significant influence at December 31, 2019, included: Entity Ownership Interest Percentage at December 31, 2019 RTS Packaging JVCO 35.0 % Cascades Conversion, Inc. 50.0 % Cascades Sonoco, Inc. 50.0 % Showa Products Company Ltd. 22.2 % Crown Fibre Tube. Inc. 20.0 % Papertech Energía, S.L. 25.0 % Weidenhammer New Packaging, LLC 40.0 % |
Acquisitions and dispositions (
Acquisitions and dispositions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of measurement period adjustments made to previously disclosed fair values | The preliminary fair values of the assets acquired and liabilities assumed in connection with the TEQ and Corenso acquisitions for the year ended December 31, 2019 are as follows: TEQ Corenso Trade Accounts Receivable $ 11,781 $ 8,673 Inventories 4,262 8,707 Property, Plant and Equipment 42,005 36,928 Goodwill 75,595 43,427 Other intangible assets 56,170 29,170 Payable to suppliers (4,965) (5,963) Other net tangible assets/(liabilities) 3,243 405 Deferred income taxes, net (799) (10,713) Net assets $ 187,292 $ 110,634 |
Fair values of assets acquired and liabilities assumed in connection with acquisition | As a result, the following measurement period adjustments were made to the previously disclosed provisional fair values of assets and liabilities acquired and are as follows: Conitex Sonoco Compositub Highland Trade accounts receivable $ (77) $ 203 $ — Inventories — 50 — Property, plant and equipment (199) (1,026) 1,895 Goodwill 2,246 (566) (1,895) Other intangible assets 300 1,888 — Accrued expenses and other (1,782) (138) — Other net tangible assets/(liabilities) (404) (40) — Additional cash consideration $ 84 $ 371 $ — |
Pro forma supplemental information | This pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisitions had been completed as of the beginning of 2016, nor are they necessarily indicative of future consolidated results. Consolidated Pro Forma Supplemental Information Year Ended Packaging Holdings and Clear Lam (unaudited) Net sales $ 5,143,066 Net income attributable to Sonoco $ 178,205 Earnings per share: Pro forma basic $ 1.78 Pro forma diluted $ 1.77 The pro forma information above does not project the Company’s expected results of any future period and gives no effect for any future synergistic benefits that may result from consolidating these subsidiaries or costs from integrating their operations with those of the Company. Pro forma information for 2017 includes adjustments to depreciation, amortization, interest expense, and income taxes. Acquisition-related costs of $4,345 and non-recurring expenses related to fair value adjustments to acquisition-date inventory of $5,750 were recognized in 2017 in connection with the acquisitions of Packaging Holdings and Clear Lam. These costs are excluded from 2017 pro forma net income. The following table presents the aggregate, unaudited financial results for Packaging Holdings and Clear Lam from their respective dates of acquisition: Packaging Holdings and Clear Lam Year Ended Actual net sales $ 215,227 Actual net income $ 3,886 |
Restructuring and asset impai_2
Restructuring and asset impairment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented: Year Ended December 31, 2019 2018 2017 Restructuring and restructuring-related asset impairment charges $ 44,819 $ 40,071 $ 19,834 Other asset impairments 15,061 — 18,585 Restructuring/Asset impairment charges $ 59,880 $ 40,071 $ 38,419 The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred: Year Ended December 31, 2019 2018 2017 Severance and Termination Benefits $ 24,864 $ 15,224 $ 12,684 Asset Impairment/Disposal of Assets 9,674 6,193 120 Other Costs 10,281 18,654 7,030 Total restructuring and restructuring-related asset impairment charges $ 44,819 $ 40,071 $ 19,834 The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment: Year Ended December 31, 2019 2018 2017 Consumer Packaging $ 34,850 $ 15,205 $ 6,751 Display and Packaging 2,459 18,800 2,048 Paper and Industrial Converted Products 4,927 4,301 7,410 Protective Solutions 519 1,532 3,162 Corporate 2,064 233 463 Total restructuring and restructuring-related asset impairment charges $ 44,819 $ 40,071 $ 19,834 |
Schedule of restructuring reserve by type of cost | The following table sets forth the activity in the restructuring accrual included in “Accrued expenses and other” on the Company’s Consolidated Balance Sheets: Severance and Termination Benefits Asset Impairment/ Disposal of Assets Other Costs Total Liability, December 31, 2017 $ 5,982 $ — $ 1,164 $ 7,146 2018 charges 15,224 6,193 18,654 40,071 Cash (payments)/receipts (15,844) 26,566 (17,541) (6,819) Asset write downs/disposals — (32,759) — (32,759) Foreign currency translation (69) — 2 (67) Liability, December 31, 2018 $ 5,293 $ — $ 2,279 $ 7,572 2019 charges 24,864 9,674 10,281 44,819 Cash (payments)/receipts (19,386) 5,225 (11,983) (26,144) Asset write downs/disposals — (14,899) — (14,899) Foreign currency translation (6) — 15 9 Liability, December 31, 2019 $ 10,765 $ — $ 592 $ 11,357 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant and equipment | Details of the Company's property, plant and equipment at December 31 are as follows: 2019 2018 Land $ 114,443 $ 110,698 Timber resources 42,338 41,862 Buildings 560,334 535,433 Machinery and equipment 3,077,500 2,977,156 Construction in progress 143,021 159,661 3,937,636 3,824,810 Accumulated depreciation and depletion (2,650,794) (2,590,989) Property, plant and equipment, net $ 1,286,842 $ 1,233,821 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Balance sheet locations and values of the 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 December 31, 2019: Classification Balance Sheet Location December 31, 2019 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 298,393 Finance lease assets Other Assets 34,858 Total lease assets $ 333,251 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 54,048 Current finance lease liabilities Notes payable and current portion of debt 10,803 Total current lease liabilities $ 64,851 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 253,992 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 22,274 Total noncurrent lease liabilities $ 276,266 Total lease liabilities $ 341,117 |
Components of the Company's total lease cost | The following table sets forth the components of the Company's total lease cost for the year ended December 31, 2019: Lease Cost Twelve months ended December 31, 2019 Operating lease cost (a) $ 61,845 Finance lease cost: Amortization of lease asset (a) (b) 6,965 Interest on lease liabilities (c) 763 Variable lease cost (a) (d) 51,616 Total lease cost $ 121,189 (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. |
Five-year 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 December 31, 2019: Maturity of Lease Liabilities Operating Leases Finance Leases Total 2020 $ 55,681 $ 11,124 $ 66,805 2021 49,474 9,258 58,732 2022 43,418 7,322 50,740 2023 39,831 4,569 44,400 2024 33,424 2,355 35,779 Beyond 2024 167,463 227 167,690 Total lease payments $ 389,291 $ 34,855 $ 424,146 Less: Interest 81,251 1,778 83,029 Lease Liabilities $ 308,040 $ 33,077 $ 341,117 |
Five-year 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 December 31, 2019: Maturity of Lease Liabilities Operating Leases Finance Leases Total 2020 $ 55,681 $ 11,124 $ 66,805 2021 49,474 9,258 58,732 2022 43,418 7,322 50,740 2023 39,831 4,569 44,400 2024 33,424 2,355 35,779 Beyond 2024 167,463 227 167,690 Total lease payments $ 389,291 $ 34,855 $ 424,146 Less: Interest 81,251 1,778 83,029 Lease Liabilities $ 308,040 $ 33,077 $ 341,117 |
Company's weighted average remaining lease term and discount rates used | 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 at December 31, 2019, along with other lease-related information for the year ended December 31, 2019: Lease Term and Discount Rate As of December 31, 2019 Weighted-average remaining lease term (years): Operating leases 10.2 Finance leases 3.8 Weighted-average discount rate: Operating leases 4.74% Finance leases 2.97% Other Information Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 61,532 Operating cash flows used by finance leases 763 Financing cash flows used by finance leases 7,989 Leased assets obtained in exchange for new operating lease liabilities 28,762 Leased assets obtained in exchange for new finance lease liabilities 24,106 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in goodwill | The changes in the carrying amount of goodwill by segment for the year ended December 31, 2019, are as follows: Consumer Packaging Display and Packaging Paper and Industrial Converted Products Protective Solutions Total Balance as of January 1, 2019 $ 617,332 $ 203,414 $ 256,947 $ 231,474 $ 1,309,167 Acquisitions 75,595 — 43,427 — 119,022 Measurement period adjustments (2,461) — 2,246 (215) Foreign currency translation 777 — 421 174 1,372 Balance as of December 31, 2019 $ 691,243 $ 203,414 $ 303,041 $ 231,648 $ 1,429,346 |
Summary of other intangible assets | Details at December 31 are as follows: 2019 2018 Other Intangible Assets, Gross: Patents $ 26,096 $ 22,509 Customer lists 632,036 548,038 Trade names 32,427 31,174 Proprietary technology 24,525 28,748 Land use rights 172 282 Other 2,125 2,093 Other Intangible Assets, Gross $ 717,381 $ 632,844 Accumulated Amortization: Patents $ (11,669) $ (9,539) Customer lists (287,831) (246,946) Trade names (9,985) (7,413) Proprietary technology (17,910) (15,400) Land use rights (51) (48) Other (1,643) (1,461) Accumulated Amortization $ (329,089) $ (280,807) Other Intangible Assets, Net $ 388,292 $ 352,037 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Instruments | Details of the Company's debt at December 31 were as follows: 2019 2018 5.75% debentures due November 2040 $ 599,244 $ 599,208 4.375% debentures due November 2021 249,428 249,116 9.2% debentures due August 2021 4,318 4,315 1.00% Euro loan due May 2021 167,272 169,976 Term loan, due May 2020 200,000 — Term loan, due July 2022 146,569 158,949 Commercial paper, average rate of 2.40% in 2019 and 2.15% in 2018 250,000 120,000 Other foreign denominated debt, average rate of 5.3% in 2019 and 3.7% in 2018 16,734 57,867 Finance lease obligations 33,077 — Other notes 14,727 25,731 Total debt 1,681,369 1,385,162 Less current portion and short-term notes 488,234 195,445 Long-term debt $ 1,193,135 $ 1,189,717 |
Schedule of Debt Maturities | The principal requirements of debt maturing in the next five years are: 2020 2021 2022 2023 2024 Debt maturities by year $ 488,234 $ 444,715 $ 130,812 $ 6,639 $ 3,646 |
Financial instruments and der_2
Financial instruments and derivatives (Tables) | 12 Months Ended |
Dec. 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 where the carrying amount differs from the fair value. December 31, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt $ 1,193,135 $ 1,351,397 $ 1,189,717 $ 1,270,521 |
Net positions of foreign contracts | The net positions of these contracts at December 31, 2019, were as follows: Currency Action Quantity Colombian peso Purchase 15,486,745 Mexican peso Purchase 335,494 Polish zloty Purchase 89,750 Czech koruna Purchase 40,333 Canadian dollar Purchase 20,812 British pound Purchase 6,187 Turkish lira Purchase 3,419 New Zealand dollar Sell (439) Australian dollar Sell (929) Swedish krona Sell (3,933) Euro Sell (30,323) Russian ruble Sell (182,187) |
Net positions of other derivatives contract | The net positions of these contracts at December 31, 2019, were as follows: Currency Action Quantity Colombian peso Purchase 10,536,995 Mexican peso Purchase 320,964 Canadian dollar Purchase 10,931 |
Location and fair values of derivative instruments | The following table sets forth the location and fair values of the Company’s derivative instruments: Fair Value at December 31 Description Balance Sheet Location 2019 2018 Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ — $ 282 Commodity Contracts Other assets $ — $ — Commodity Contracts Accrued expenses and other $ (1,625) $ (1,843) Commodity Contracts Other liabilities $ — $ (10) Foreign Exchange Contracts Prepaid expenses $ 1,236 $ 770 Foreign Exchange Contracts Accrued expenses and other $ (178) $ (2,482) Derivatives not designated as hedging instruments: Foreign Exchange Contracts Prepaid expenses $ 88 $ 727 Foreign Exchange Contracts Accrued expenses and other $ (34) $ (561) |
Effect of derivative instruments on financial performance | The following table sets forth the effect of the Company’s derivative instruments on financial performance for the twelve months ended December 31, 2019, excluding the gains on foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures: Description Amount of Gain or (Loss) Recognized in OCI on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income Derivatives in Cash Flow Hedging Relationships: Foreign Exchange Contracts $ 2,495 Net sales $ 1,381 Cost of sales $ (1,758) Commodity Contracts $ 216 Cost of sales $ 270 Location of Gain or (Loss) Recognized in Income Statement Gain or (Loss) Recognized Derivatives not designated as hedging instruments: Foreign Exchange Contracts Cost of sales $ — Selling, general and administrative $ (704) Description Revenue Cost of Sales Total amount of income and expense line items presented in the Consolidated Statements of Income $ 1,381 $ (1,488) The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships: Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income $ 1,381 $ (1,758) Commodity contract: Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income $ — $ 270 The following table sets forth the effect of the Company’s derivative instruments on financial performance for the twelve months ended December 31, 2018, excluding the gains on foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures: Description Amount of Gain or (Loss) Recognized in OCI on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income Derivatives in Cash Flow Hedging Relationships: Foreign Exchange Contracts $ (2,354) Net sales $ (203) Cost of sales $ (20) Commodity Contracts $ 258 Cost of sales $ 115 Location of Gain or (Loss) Recognized in Income Statement Gain or (Loss) Recognized Derivatives not designated as hedging instruments: Foreign Exchange Contracts Cost of sales $ — Selling, general and administrative $ 41 Description Revenue Cost of Sales Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ (203) $ 95 The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships: Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income $ (203) $ (20) Commodity contract: Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income $ — $ 115 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured on recurring basis | The following tables set forth information regarding the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis: Description December 31, 2019 Assets measured at NAV (g) Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (1,625) $ — $ — $ (1,625) $ — Foreign exchange contracts 1,058 — — 1,058 — Non-hedge derivatives, net: Foreign exchange contracts 54 — — 54 — Postretirement benefit plan assets: Common Collective Trust (a) $ 1,212,114 $ 1,212,114 $ — $ — $ — Mutual funds(b) 171,198 — — 171,198 — Fixed income securities(c) 192,598 — — 192,598 — Short-term investments(d) 1,201 23 1,178 — Hedge fund of funds(e) 75,108 75,108 — — — Real estate funds(f) 938 938 — — — Cash and accrued income 43,244 — 43,244 — — Total postretirement benefit plan assets $ 1,696,401 $ 1,288,160 $ 43,267 $ 364,974 $ — Description December 31, 2018 Assets measured at NAV (g) 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 — — Postretirement benefit plan assets: Common Collective Trust (a) $ 862,565 $ 862,565 $ — $ — $ — Mutual funds(b) 157,088 — — 157,088 — Fixed income securities(c) 175,543 — — 175,543 — Short-term investments(d) 1,166 38 1,128 — Hedge fund of funds(e) 71,354 71,354 — — — Real estate funds(f) 61,249 61,249 — — — Cash and accrued income 786 — 786 — — Total postretirement benefit plan assets $ 1,329,751 $ 995,168 $ 824 $ 333,759 $ — a. Common collective trust investments consist of domestic and international large and mid capitalization equities, including emerging markets and funds invested in both short-term and long-term bonds. Underlying investments are generally valued at closing prices from national exchanges. Commingled funds, private securities, and limited partnerships are valued at unit values or net asset values provided by the investment managers. b. Mutual fund investments are comprised of equity securities of corporations with large capitalizations and also include funds invested in corporate equities in international and emerging markets and funds invested in long-term bonds, which are valued at closing prices from national exchanges. c. Fixed income securities include funds that invest primarily in government securities and long-term bonds. Underlying investments are generally valued at closing prices from national exchanges, fixed income pricing models, and independent financial analysts. Fixed income commingled funds are valued at unit values provided by the investment managers. d. Short-term investments include several money market funds used for managing overall liquidity. Underlying investments are generally valued at closing prices from national exchanges. Commingled funds are valued at unit values provided by the investment managers. e. The hedge fund of funds category includes investments in funds representing a variety of strategies intended to diversify risks and reduce volatility. It includes event-driven credit and equity investments targeted at economic policy decisions, long and short positions in U.S. and international equities, arbitrage investments and emerging market equity investments. Investments are valued at unit values or net asset values provided by the investment managers. f. This category includes investments in real estate funds (including office, industrial, residential and retail). Underlying real estate securities are generally valued at closing prices from national exchanges. g. Certain assets that are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Share-based compensation plans
Share-based compensation plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Estimated fair values of all SARs applying assumptions | The Company computed the estimated fair values of all SARs using the Black-Scholes option-pricing model applying the assumptions set forth in the following table: 2019 2018 2017 Expected dividend yield 2.7 % 3.1 % 2.7 % Expected stock price volatility 16.6 % 16.2 % 17.2 % Risk-free interest rate 2.6 % 2.8 % 2.0 % Expected life of SARs 6 years 6 years 6 years |
Company's SARs | The activity related to the Company’s SARs is as follows: Nonvested Vested Total Weighted- average Exercise Price Outstanding, December 31, 2018 1,119,602 712,756 1,832,358 $ 47.41 Vested (620,026) 620,026 — Granted 543,278 — 543,278 $ 60.76 Exercised — (664,797) (664,797) $ 43.92 Forfeited/Expired (135,841) (12,875) (148,716) $ 53.36 Outstanding, December 31, 2019 907,013 655,110 1,562,123 $ 52.95 Exercisable, December 31, 2019 — 655,110 655,110 $ 47.69 |
Share-based compensation, performance shares award unvested activity | The activity related to performance contingent restricted stock units is as follows: Nonvested Vested Total Average Grant Date Fair Value per Share Outstanding, December 31, 2018 329,532 322,287 651,819 $40.21 Granted 115,412 — 115,412 $56.04 Performance adjustments (42,866) — (42,866) $45.75 Vested (84,522) 84,522 — Converted — (177,902) (177,902) $35.55 Cancelled (18,720) — (18,720) $47.75 Dividend equivalents — 4,190 4,190 $60.42 Outstanding, December 31, 2019 298,836 233,097 531,933 $44.65 |
Activity related to PCSUs and restricted stock units | The activity related to restricted stock units is as follows: Nonvested Vested Total Average Grant Date Fair Value Per Share Outstanding, December 31, 2018 158,381 151,414 309,795 $ 38.41 Granted 69,686 — 69,686 $ 57.76 Vested (54,352) 54,352 — Converted — (114,981) (114,981) $ 40.00 Cancelled (18,701) — (18,701) $ 50.69 Dividend equivalents 1,563 3,923 5,486 $ 60.71 Outstanding, December 31, 2019 156,577 94,708 251,285 $ 46.14 |
Schedule of other share-based compensation, activity | The activity related to deferred compensation for equity award units granted to both employees and non-employee directors combined is as follows: Total Outstanding, December 31, 2018 390,354 Deferred 46,065 Converted (80,288) Dividend equivalents 11,016 Outstanding, December 31, 2019 367,147 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Components of net periodic benefit cost | The components of net periodic benefit cost include the following: 2019 2018 2017 Retirement Plans Service cost $ 3,968 $ 18,652 $ 18,543 Interest cost 57,348 54,970 55,873 Expected return on plan assets (65,143) (91,021) (81,212) Amortization of prior service cost 1,022 916 910 Amortization of net actuarial loss 30,681 37,391 39,209 Effect of settlement loss 2,377 730 32,761 Effect of curtailment loss — 256 — Net periodic benefit cost $ 30,253 $ 21,894 $ 66,084 Retiree Health and Life Insurance Plans Service cost $ 308 $ 297 $ 313 Interest cost 467 452 463 Expected return on plan assets (718) (1,135) (1,636) Amortization of prior service credit (498) (498) (499) Amortization of net actuarial gain (823) (1,120) (759) Net periodic benefit income $ (1,264) $ (2,004) $ (2,118) |
Plans' obligations | The following tables set forth the Plans’ obligations and assets at December 31: Retirement Plans Retiree Health and Life Insurance Plans 2019 2018 2019 2018 Change in Benefit Obligation Benefit obligation at January 1 $ 1,684,277 $ 1,837,938 $ 14,048 $ 15,691 Service cost 3,968 18,652 308 297 Interest cost 57,348 54,970 467 452 Plan participant contributions 224 429 680 620 Plan amendments 1,343 155 — — Actuarial loss/(gain) 316,547 (115,153) 589 (398) Benefits paid (92,636) (93,053) (1,621) (2,569) Impact of foreign exchange rates 11,952 (21,636) 24 (45) Effect of settlements (8,101) (2,210) — — Effect of curtailments — (253) — — Acquisitions 1,275 4,438 — — Benefit obligation at December 31 $ 1,976,197 $ 1,684,277 $ 14,495 $ 14,048 |
Fair value of plan assets | Retirement Plans Retiree Health and Life Insurance Plans 2019 2018 2019 2018 Change in Plan Assets Fair value of plan assets at January 1 $ 1,318,832 $ 1,494,713 $ 10,919 $ 27,177 Actual return on plan assets 242,823 (78,447) 2,327 (915) Company contributions 215,979 24,524 682 (13,302) Plan participant contributions 224 429 680 620 Benefits paid (92,636) (93,053) (1,621) (2,569) Impact of foreign exchange rates 12,869 (22,380) — — Effect of settlements (8,101) (2,210) — — Expenses paid (7,084) (6,670) (106) (92) Acquisitions 614 1,926 — — Fair value of plan assets at December 31 $ 1,683,520 $ 1,318,832 $ 12,881 $ 10,919 Funded Status of the Plans $ (292,677) $ (365,445) $ (1,614) $ (3,129) |
Recognized amounts in consolidated balance sheets | The negative contribution reported in 2018 for the Company's Retiree Health and Life Insurance Plans reflects $14,025 of cash withdrawn from a collectively bargained VEBA in 2018 pursuant to an IRS private letter ruling dated April 1, 2018, permitting the Company to amend the VEBA to provide benefits to active, non-collectively bargained employees in addition to retired collectively bargained employees. Retirement Plans Retiree Health and Life Insurance Plans 2019 2018 2019 2018 Total Recognized Amounts in the Consolidated Balance Sheets Noncurrent assets $ 24,196 $ 18,520 $ — $ — Current liabilities (13,913) (12,935) (784) (983) Noncurrent liabilities (302,960) (371,030) (830) (2,146) Net liability $ (292,677) $ (365,445) $ (1,614) $ (3,129) |
Component of net periodic pension cost that are included in accumulated other comprehensive loss (income) | Items not yet recognized as a component of net periodic pension cost that are included in Accumulated Other Comprehensive Loss (Income) as of December 31, 2019 and 2018, are as follows: Retirement Plans Retiree Health and Life Insurance Plans 2019 2018 2019 2018 Net actuarial loss/(gain) $ 759,610 $ 646,254 $ (7,055) $ (6,964) Prior service cost/(credit) 6,159 5,514 (279) (777) $ 765,769 $ 651,768 $ (7,334) $ (7,741) |
Amounts recognized in other comprehensive loss/(income) | The amounts recognized in Other Comprehensive Loss/(Income) include the following: Retirement Plans Retiree Health and Life Insurance Plans 2019 2018 2017 2019 2018 2017 Adjustments arising during the period: Net actuarial loss/(gain) $ 146,414 $ 58,544 $ (10,732) $ (914) $ 1,738 $ (3,525) Prior service cost/(credit) 1,667 2,906 639 — — — Net settlements/curtailments (2,377) (986) (32,761) — — — Reversal of amortization: Net actuarial (loss)/gain (30,681) (37,391) (39,209) 823 1,120 759 Prior service (cost)/credit (1,022) (916) (910) 498 498 499 Total recognized in other comprehensive loss/(income) $ 114,001 $ 22,157 $ (82,973) $ 407 $ 3,356 $ (2,267) Total recognized in net periodic benefit cost and other comprehensive loss/(income) $ 144,254 $ 44,051 $ (16,889) $ (857) $ 1,352 $ (4,385) |
Accumulated other comprehensive loss/(income) expects to recognize as components of net periodic benefit cost | Of the amounts included in Accumulated Other Comprehensive Loss/(Income) as of December 31, 2019, the portions the Company expects to recognize as components of net periodic benefit cost in 2020 are as follows: Retirement Plans Retiree Health and Life Insurance Plans Net actuarial loss/(gain) $ 22,486 $ (808) Prior service cost/(credit) 1,037 (279) $ 23,523 $ (1,087) |
Company's projected benefit payments | The following table sets forth the Company’s projected benefit payments for the next ten years: Year Retirement Plans Retiree Health and Life Insurance Plans 2020 $ 96,448 $ 1,344 2021 $ 93,436 $ 1,305 2022 $ 94,786 $ 1,269 2023 $ 95,830 $ 1,230 2024 $ 97,372 $ 1,173 2025-2029 $ 508,354 $ 5,344 |
Major actuarial assumptions used in determining PBO, ABO and net periodic cost | The following tables set forth the major actuarial assumptions used in determining the benefit obligation and net periodic cost: Weighted-average assumptions used to determine benefit obligations at December 31 U.S. Retirement Plans U.S. Retiree Health and Life Insurance Plans Foreign Plans Discount Rate 2019 2.87 % 2.89 % 2.28 % 2018 4.24 % 4.02 % 3.11 % Rate of Compensation Increase 2019 — % 3.04 % 3.37 % 2018 — % 3.06 % 3.65 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31 U.S. Retirement Plans U.S. Retiree Health and Life Insurance Plans Foreign Plans Discount Rate 2019 4.24 % 4.02 % 3.11 % 2018 3.59 % 3.36 % 2.78 % 2017 4.12 % 3.70 % 2.95 % Expected Long-term Rate of Return 2019 6.63 % 6.73 % 4.62 % 2018 6.87 % 6.95 % 4.84 % 2017 6.86 % 6.98 % 4.52 % Rate of Compensation Increase 2019 — % 3.06 % 3.65 % 2018 3.40 % 3.28 % 3.62 % 2017 3.60 % 3.32 % 3.65 % |
Health care cost trend rates related to U.S. plan | The U.S. Retiree Health and Life Insurance Plan makes up approximately 96% of the Retiree Health liability. Therefore, the following information relates to the U.S. plan only. Healthcare Cost Trend Rate Pre-age 65 Post-age 65 2019 6.25 % 6.25 % 2018 6.50 % 6.50 % Ultimate Trend Rate Pre-age 65 Post-age 65 2019 4.50 % 4.50 % 2018 4.50 % 4.50 % Year at which the Rate Reaches the Ultimate Trend Rate Pre-age 65 Post-age 65 2019 2026 2026 2018 2026 2026 |
Retirement Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average asset allocations | The following table sets forth the weighted-average asset allocations of the Company’s retirement plans at 2019 and 2018, by asset category. Asset Category U.S. U.K. Canada Equity securities 2019 — % 42.1 % 67.9 % 2018 48.3 % 38.9 % 55.4 % Debt securities 2019 91.6 % 57.3 % 31.6 % 2018 38.4 % 60.5 % 44.0 % Alternative 2019 5.7 % — % — % 2018 13.3 % — % — % Cash and short-term investments 2019 2.7 % 0.6 % 0.5 % 2018 — % 0.6 % 0.6 % Total 2019 100.0 % 100.0 % 100.0 % 2018 100.0 % 100.0 % 100.0 % |
Retiree Health and Life Insurance Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average asset allocations | The following table sets forth the weighted-average asset allocations by asset category of the Company’s retiree health and life insurance plan. Asset Category 2019 2018 Equity securities —% 48.3% Debt securities 91.6% 38.4% Alternative 5.7% 13.3% Cash 2.7% —% Total 100.0% 100.0% |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision for taxes on income | The provision for taxes on income for the years ended December 31 consists of the following: 2019 2018 2017 Pretax income Domestic $ 217,098 $ 225,442 $ 168,180 Foreign 163,668 153,089 146,374 Total pretax income $ 380,766 $ 378,531 $ 314,554 Current Federal $ 14,933 $ 37,345 $ 120,398 State 2,565 6,164 5,623 Foreign 45,911 38,648 40,328 Total current $ 63,409 $ 82,157 $ 166,349 Deferred Federal $ 25,064 $ (5,571) $ (16,797) State 8,599 $ (738) 3,499 Foreign (3,803) (840) (6,462) Total deferred $ 29,860 $ (7,149) $ (19,760) Total taxes $ 93,269 $ 75,008 $ 146,589 |
Deferred tax liabilities/(assets) | Deferred tax (liabilities)/assets are comprised of the following at December 31: 2019 2018 Property, plant and equipment $ (91,207) $ (102,007) Intangibles (134,868) (178,883) Leases (79,332) — Gross deferred tax liabilities $ (305,407) $ (280,890) Retiree health benefits $ 2,405 $ 2,989 Foreign loss carryforwards 58,527 57,581 U.S. Federal loss and credit carryforwards 86,748 86,655 Capital loss carryforwards 2,703 2,757 Employee benefits 87,295 114,872 Leases 79,673 — Accrued liabilities and other 63,700 102,349 Gross deferred tax assets $ 381,051 $ 367,203 Valuation allowance on deferred tax assets $ (105,347) $ (103,289) Total deferred taxes, net $ (29,703) $ (16,976) |
Reconciliation of U.S. Federal Statutory Tax Rate to actual consolidated tax expense | A reconciliation of the U.S. federal statutory tax rate to the actual consolidated tax expense is as follows: 2019 2018 2017 Statutory tax rate $ 79,961 21.0 % $ 79,491 21.0 % $ 110,094 35.0 % State income taxes, net of federal tax benefit 7,767 2.0 % 7,534 2.0 % 4,780 1.5 % Valuation allowance 3,174 0.8 % (14,902) (3.9) % (3,333) (1.1) % Tax examinations including change in reserve for uncertain tax positions (1,639) (0.4) % (3,076) (0.8) % 4,895 1.6 % Adjustments to prior year deferred taxes (499) (0.1) % (1,899) (0.5) % (1,415) (0.4) % Foreign earnings taxed at other than U.S. rates 5,083 1.3 % 8,224 2.2 % (16,233) (5.2) % Disposition of business — — % — — % 537 0.2 % Effect of tax rate changes 531 0.1 % (6,218) (1.6) % (22,183) (7.1) % Deduction related to qualified production activities — — % 341 0.1 % (5,384) (1.7) % Transition tax — — % 3,647 1.0 % 76,933 24.5 % Tax credits (13,310) (3.5) % (10,083) (2.7) % (1,197) (0.4) % Global intangible low-taxed income (GILTI) 12,340 3.2 % 12,878 3.4 % — — % Foreign-derived intangible income (1,225) (0.3) % (1,174) (0.3) % — — % Other, net 1,086 0.3 % 245 0.1 % (905) (0.3) % Total taxes $ 93,269 24.5 % $ 75,008 19.8 % $ 146,589 46.6 % |
Reconciliation of gross amounts of unrecognized tax benefits | The following table sets forth the reconciliation of the gross amounts of unrecognized tax benefits at the beginning and ending of the periods indicated: 2019 2018 2017 Gross Unrecognized Tax Benefits at January 1 $ 14,400 $ 17,100 $ 17,700 Increases in prior years’ unrecognized tax benefits — — 700 Decreases in prior years’ unrecognized tax benefits (1,300) (700) (2,400) Increases in current year's unrecognized tax benefits 1,300 1,200 1,600 Decreases in unrecognized tax benefits from the lapse of statutes of limitations (2,300) (2,600) (300) Settlements 100 (600) (200) Gross Unrecognized Tax Benefits at December 31 $ 12,200 $ 14,400 $ 17,100 |
(Tables)
(Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract asset and liabilities | The following table sets forth information about 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 Consolidated Balance Sheets. December 31, 2019 December 31, 2018 Contract Assets $ 56,364 $ 48,786 Contract Liabilities (17,047) (18,533) Significant changes in the contract assets and liabilities balances during the period were as follows: December 31, 2019 December 31, 2018 Contract Asset Contract Liability Contract Asset Contract Liability Beginning balance $ 48,786 $ (18,533) $ 45,877 $ (17,736) Revenue deferred or rebates accrued — (29,062) — (19,730) Recognized as revenue — 8,473 — 1,652 Rebates paid to customers — 22,075 — 17,281 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 51,797 — 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 — — — — Contract asset acquired in a business combination 4,567 — — — Ending balance $ 56,364 $ (17,047) $ 48,786 $ (18,533) |
Disaggregation of revenue | The following tables set forth information about revenue disaggregated by primary geographic regions for the years ended December 31, 2019 and 2018. The tables also include a reconciliation of disaggregated revenue with reportable segments. Twelve Months Ended December 31, 2019 Consumer Packaging Display and Packaging Paper and Industrial Converted Products Protective Solutions Total Primary geographical markets: United States $ 1,659,071 $ 246,735 $ 1,095,437 $ 407,216 $ 3,408,459 Europe 407,759 301,866 346,102 23,039 1,078,766 Canada 108,848 — 117,201 — 226,049 Asia Pacific 70,504 — 277,385 2,370 350,259 Other 87,204 5,524 138,614 79,332 310,674 Total $ 2,333,386 $ 554,125 $ 1,974,739 $ 511,957 $ 5,374,207 Twelve Months Ended December 31, 2018 Consumer Packaging Display and Packaging Paper and Industrial Converted Products Protective Solutions Total Primary geographical markets: United States $ 1,676,204 $ 290,295 $ 1,108,735 $ 415,135 $ 3,490,369 Europe 418,129 294,156 354,705 25,664 1,092,654 Canada 115,183 — 131,025 — 246,208 Asia Pacific 69,242 — 178,509 3,548 251,299 Other 81,241 7,858 137,979 83,330 310,408 Total $ 2,359,999 $ 592,309 $ 1,910,953 $ 527,677 $ 5,390,938 |
Shareholders_ equity and earn_2
Shareholders’ equity and earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Earnings per share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): 2019 2018 2017 Numerator: Net income attributable to Sonoco $ 291,785 $ 313,560 $ 175,345 Denominator: Weighted average common shares outstanding 100,742 100,539 100,237 Dilutive effect of stock-based compensation 434 477 615 Diluted outstanding shares 101,176 101,016 100,852 Per common share: Net income attributable to Sonoco: Basic $ 2.90 $ 3.12 $ 1.75 Diluted $ 2.88 $ 3.10 $ 1.74 Cash dividends $ 1.70 $ 1.62 $ 1.54 |
Shares not included in computations of diluted income per share | The average number of shares that were not dilutive and therefore not included in the computation of diluted income per share was as follows for the years ended December 31, 2019, 2018 and 2017 (in thousands): 2019 2018 2017 Anti-dilutive stock appreciation rights 475 786 487 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Financial segment information | The following table sets forth financial information about each of the Company's business segments: Years ended December 31 Consumer Packaging Display and Packaging Paper and Protective Solutions Corporate Consolidated Total Revenue 2019 $ 2,338,881 $ 558,747 $ 2,111,491 $ 513,584 $ — $ 5,522,703 2018 2,363,292 595,855 2,042,732 529,324 — 5,531,203 2017 2,129,022 511,099 2,007,321 540,665 — 5,188,107 Intersegment Sales 1 2019 $ 5,495 $ 4,622 $ 136,752 $ 1,627 $ — $ 148,496 2018 3,293 3,546 131,779 1,647 — 140,265 2017 5,557 2,863 141,141 1,896 — 151,457 Sales to Unaffiliated Customers 2019 $ 2,333,386 $ 554,125 $ 1,974,739 $ 511,957 $ — $ 5,374,207 2018 2,359,999 592,309 1,910,953 527,677 — 5,390,938 2017 2,123,465 508,236 1,866,180 538,769 — 5,036,650 Income Before Income Taxes 2 2019 $ 228,416 $ 27,723 $ 219,052 $ 50,201 $ (144,626) $ 380,766 2018 224,505 13,291 211,122 42,902 (113,289) 378,531 2017 255,759 2,632 161,591 42,357 (147,785) 314,554 Identifiable Assets 3 2019 $ 2,239,674 $ 452,155 $ 1,701,902 $ 580,411 $ 152,147 $ 5,126,289 2018 1,993,417 440,972 1,472,148 535,443 141,485 4,583,465 2017 1,890,516 480,892 1,346,391 552,425 287,497 4,557,721 Depreciation, Depletion and Amortization 4 2019 $ 111,919 $ 14,926 $ 85,619 $ 26,676 $ — $ 239,140 2018 116,841 18,020 74,434 26,950 — 236,245 2017 98,882 17,090 74,850 26,803 — 217,625 Capital Expenditures 2019 $ 64,590 $ 5,065 $ 112,308 $ 6,880 $ 7,091 $ 195,934 2018 66,659 19,849 91,423 5,879 8,764 192,574 2017 63,617 23,908 61,443 19,031 20,914 188,913 1 Intersegment sales are recorded at a market-related transfer price. 2 Included in Corporate above are interest expense, interest income, restructuring/asset impairment charges, property insurance settlement gains, non-operating pension costs, acquisition-related charges, and other non-operational income and expenses associated with the following segments: Consumer Packaging Display Paper and Industrial Converted Products Protective Solutions Corporate Total 2019 $ 41,155 $ (7,358) $ 5,270 $ 9,083 $ 96,476 $ 144,626 2018 18,391 19,046 11,773 1,529 62,550 113,289 2017 9,990 2,082 24,281 3,071 108,361 147,785 The remaining amounts reported as Corporate consist of interest expense, interest income, non-operating pension costs, and other non-operational income and expenses not associated with a particular segment. 3 Identifiable assets are those assets used by each segment in its operations. Corporate assets consist primarily of cash and cash equivalents, investments in affiliates, headquarters facilities, deferred income taxes and prepaid expenses. 4 Depreciation, depletion and amortization incurred at Corporate are allocated to the reportable segments. |
Sales to unaffiliated customers and long-lived assets by geographic region | Sales to unaffiliated customers and long-lived assets by geographic region are as follows: 2019 2018 2017 Sales to Unaffiliated Customers United States $ 3,408,459 $ 3,490,369 $ 3,263,975 Europe 1,078,766 1,092,654 981,178 Canada 226,049 246,208 245,992 All other 660,933 561,707 545,505 Total $ 5,374,207 $ 5,390,938 $ 5,036,650 Long-lived Assets United States $ 2,177,918 $ 1,953,391 $ 1,962,196 Europe 648,648 641,600 659,615 Canada 107,470 113,782 120,062 All other 224,783 241,767 108,395 Total $ 3,158,819 $ 2,950,540 $ 2,850,268 |
Accumulated other comprehensi_2
Accumulated other comprehensive loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated other comprehensive income Loss and Changes in Accumulated other comprehensive loss, net of tax | The following table summarizes the components of accumulated other comprehensive loss and the changes in accumulated other comprehensive loss, net of tax as applicable, for the years ended December 31, 2019 and 2018: Foreign Currency Items Defined Benefit Pension Items Gains and Losses on Cash Flow Hedges Accumulated Other Comprehensive Loss Balance at December 31, 2017 $ (198,495) $ (467,136) $ (641) $ (666,272) Other comprehensive income/(loss) before reclassifications (53,504) (50,232) (1,380) (105,116) Amounts reclassified from accumulated other comprehensive loss to net income 897 29,988 71 30,956 Amounts reclassified from accumulated other comprehensive loss to fixed assets — — (305) (305) Other comprehensive income/(loss) (52,607) (20,244) (1,614) (74,465) Amounts reclassified from accumulated other comprehensive loss to retained earnings — — (176) (176) Balance at December 31, 2018 $ (251,102) $ (487,380) $ (2,431) $ (740,913) Other comprehensive income/(loss) before reclassifications 9,108 (111,493) 2,061 (100,324) Amounts reclassified from accumulated other comprehensive loss to net income — 24,460 81 24,541 Amounts reclassified from accumulated other comprehensive loss to fixed assets — — (107) (107) Other comprehensive income/(loss) 9,108 (87,033) 2,035 (75,890) Balance at December 31, 2019 $ (241,994) $ (574,413) $ (396) $ (816,803) |
Reclassification out of accumulated other comprehensive income | The following table summarizes the amounts reclassified from accumulated other comprehensive loss and the affected line items in the consolidated statements of net income for the years ended December 31, 2019 and 2018: Details about Accumulated Other Comprehensive Loss Components Twelve Months Ended Twelve Months Ended Affected Line Item in the Consolidated Statements of Net Income Foreign currency items Amounts reclassified to net income $ — $ (897) Selling, general and administrative expenses — (897) Defined benefit pension items (see Note 13) Effect of settlement loss (2,377) (730) Non-operating pension cost Effect of curtailment loss — (256) Non-operating pension cost Amortization of defined benefit pension items (30,382) (36,689) Non-operating pension cost (32,759) (37,675) 8,299 7,687 Provision for income taxes (24,460) (29,988) Net income Gains and losses on cash flow hedges (see Note 10) Foreign exchange contracts 1,381 (203) Net Sales Foreign exchange contracts (1,758) (20) Cost of sales Commodity contracts 270 115 Cost of sales (107) (108) Income before income taxes 26 37 Provision for income taxes (81) (71) Net income Total reclassifications for the period $ (24,541) $ (30,956) Net income |
Schedule of other comprehensive loss components | The following table summarizes the tax (expense) benefit amounts for the other comprehensive loss components for the years ended December 31, 2019 and 2018: For the year ended December 31, 2019 For the year ended December 31, 2018 Before Tax Amount Tax (Expense) Benefit After Tax Amount Before Tax Amount Tax (Expense) Benefit After Tax Amount Foreign currency items: Other comprehensive income/(loss) before reclassifications $ 9,108 $ — $ 9,108 $ (53,504) $ — $ (53,504) Amounts reclassified from accumulated other comprehensive income/(loss) to net income — — — 897 — 897 Gains and losses on foreign currency items: 9,108 — 9,108 (52,607) — (52,607) Defined benefit pension items: Other comprehensive income/(loss) before reclassifications (147,948) 36,455 (111,493) (63,259) 13,027 (50,232) Amounts reclassified from accumulated other comprehensive income/(loss) to net income 32,759 (8,299) 24,460 37,675 (7,687) 29,988 Net other comprehensive income/(loss) from defined benefit pension items (115,189) 28,156 (87,033) (25,584) 5,340 (20,244) Gains and losses on cash flow hedges: Other comprehensive income/(loss) before reclassifications 2,711 (650) 2,061 (2,096) 716 (1,380) Amounts reclassified from accumulated other comprehensive income/(loss) to net income 107 (26) 81 108 (37) 71 Amounts reclassified from accumulated other comprehensive income/(loss) to fixed assets (107) — (107) (305) — (305) Net other comprehensive income/(loss) from cash flow hedges 2,711 (676) 2,035 (2,293) 679 (1,614) Other comprehensive income/(loss) $ (103,370) $ 27,480 $ (75,890) $ (80,484) $ 6,019 $ (74,465) The change in defined benefit plans includes pretax changes of $(781) and $(71) during the years ended December 31, 2019 and 2018, related to one of the Company’s equity method investments. |
Selected quarterly financial _2
Selected quarterly financial data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data | The following table sets forth selected quarterly financial data of the Company: (unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter 2019 Net sales $ 1,351,705 $ 1,359,721 $ 1,353,931 $ 1,308,850 Gross profit 270,121 275,336 265,485 246,887 Restructuring/Asset impairment charges 10,672 13,355 6,615 29,238 Net income attributable to Sonoco 73,663 81,159 92,064 44,899 Per common share: Net income attributable to Sonoco: - basic $ 0.73 $ 0.81 $ 0.91 $ 0.45 - diluted $ 0.73 $ 0.80 $ 0.91 $ 0.44 Cash dividends - common $ 0.41 $ 0.43 $ 0.43 $ 0.43 Market price - high $ 61.79 $ 66.23 $ 66.57 $ 62.77 - low $ 51.29 $ 59.65 $ 55.44 $ 55.12 2018 Net sales $ 1,304,187 $ 1,366,373 $ 1,364,762 $ 1,355,616 Gross profit 250,602 276,460 259,636 254,308 Restructuring/Asset impairment charges 3,063 3,567 22,061 11,380 Net income attributable to Sonoco 74,055 89,412 72,415 77,678 Per common share: Net income attributable to Sonoco: - basic $ 0.74 $ 0.89 $ 0.72 $ 0.78 - diluted $ 0.73 $ 0.88 $ 0.72 $ 0.77 Cash dividends - common $ 0.39 $ 0.41 $ 0.41 $ 0.41 Market price - high $ 55.43 $ 53.80 $ 58.69 $ 58.31 - low $ 46.55 $ 46.94 $ 51.18 $ 50.30 |
Summary of significant accoun_4
Summary of significant accounting policies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Carrying value of equity investments | $ 54,339 | $ 55,516 | |
Research and development costs | $ 23,300 | $ 23,200 | $ 21,000 |
Percentage of LIFO inventory (percent) | 13.00% | 14.00% | |
LIFO inventory amount | $ 20,203 | $ 18,854 | |
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets, useful life | 3 years | ||
Minimum | Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property plant and equipment, useful life | 3 years | ||
Minimum | Buildings | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property plant and equipment, useful life | 15 years | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets, useful life | 40 years | ||
Maximum | Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property plant and equipment, useful life | 11 years | ||
Maximum | Buildings | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property plant and equipment, useful life | 40 years | ||
Net sales | Multi-Vendor Supply Chain Finance Arrangement | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Customer concentrations (percent) | 9.00% | 9.00% | |
Net sales | Customer concentration | Largest customer | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Customer concentrations (percent) | 5.00% | 4.00% | 4.00% |
Net sales | Customer concentration | Second largest customer | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Customer concentrations (percent) | 4.00% | 4.00% | 3.00% |
Receivables | Customer concentration | Largest customer | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Customer concentrations (percent) | 8.00% | 4.00% | |
Chilean tube | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage ownership of investments accounted for under the cost method (percent) | 19.50% | ||
Finland Small Recycling Business | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage ownership of investments accounted for under the cost method (percent) | 12.19% |
Summary of significant accoun_5
Summary of significant accounting policies - Company Held Significant Investment (Details) | Dec. 31, 2019 |
RTS Packaging JVCO | |
Noncontrolling Interest [Line Items] | |
Ownership interest (percent) | 35.00% |
Cascades Conversion, Inc. | |
Noncontrolling Interest [Line Items] | |
Ownership interest (percent) | 50.00% |
Cascades Sonoco, Inc. | |
Noncontrolling Interest [Line Items] | |
Ownership interest (percent) | 50.00% |
Showa Products Company Ltd. | |
Noncontrolling Interest [Line Items] | |
Ownership interest (percent) | 22.20% |
Crown Fibre Tube. Inc. | |
Noncontrolling Interest [Line Items] | |
Ownership interest (percent) | 20.00% |
Papertech Energia, S.L. | |
Noncontrolling Interest [Line Items] | |
Ownership interest (percent) | 25.00% |
Weidenhammer New Packaging, LLC | |
Noncontrolling Interest [Line Items] | |
Ownership interest (percent) | 40.00% |
New accounting pronouncements (
New accounting pronouncements (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Jan. 01, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase (decrease) for impact of new accounting pronouncement | $ (6,771) | $ 1,721 | $ 0 | |||
Right of Use Asset-Operating Leases | $ 298,393 | |||||
Lease liability | 308,040 | |||||
Reduction to deferred tax liabilities | $ (76,206) | $ (64,273) | ||||
Accounting Standards Update 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Right of Use Asset-Operating Leases | 336,083 | |||||
Lease liability | 344,362 | |||||
Reduction to deferred tax liabilities | 1,508 | |||||
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase (decrease) for impact of new accounting pronouncement | (6,771) | $ 1,897 | $ 72,921 | |||
Retained Earnings | Accounting Standards Update 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase (decrease) for impact of new accounting pronouncement | $ 6,771 | |||||
Subsequent event | Retained Earnings | ASU 2016-13 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase (decrease) for impact of new accounting pronouncement | $ 200 |
Acquisitions and dispositions -
Acquisitions and dispositions - Acquisitions, Narrative (Details) $ in Thousands | Dec. 31, 2019USD ($)employee | Aug. 09, 2019USD ($) | Oct. 01, 2018USD ($)employeefacilitycountry | Sep. 30, 2018USD ($) | Apr. 12, 2018USD ($)installment | Jul. 24, 2017USD ($) | Mar. 14, 2017USD ($)facility | Feb. 28, 2019USD ($) | Dec. 31, 2019USD ($)employeeacquisition | Dec. 31, 2018USD ($)acquisition | Dec. 31, 2017USD ($)acquisition | Sep. 29, 2019USD ($) |
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisition | $ 298,380 | $ 277,177 | $ 383,725 | |||||||||
Payment for contingent consideration liability | 5,500 | 0 | 0 | |||||||||
Carrying value of equity investments | $ 54,339 | 54,339 | 55,516 | |||||||||
Loss on remeasurement of previously held interest in acquiree | 0 | 4,784 | 0 | |||||||||
Acquisition-related costs | 8,842 | 14,446 | 13,790 | |||||||||
2019 Acquisitions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisition | $ 297,926 | |||||||||||
Number of acquisitions | acquisition | 2 | |||||||||||
2018 Acquisitions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisition | $ 278,777 | |||||||||||
Number of acquisitions | acquisition | 3 | |||||||||||
2017 Acquisitions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisition | $ 383,725 | |||||||||||
Number of acquisitions | acquisition | 2 | |||||||||||
TEQ | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisition | $ 187,292 | |||||||||||
Entity number of employees (employee) | employee | 500 | 500 | ||||||||||
Expected value of goodwill to be tax deductible | $ 58,544 | $ 58,544 | ||||||||||
Corenso | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisition | $ 110,634 | |||||||||||
Expected value of goodwill to be tax deductible | $ 0 | |||||||||||
Conitex Sonoco Holding BVI Ltd. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisition | $ 127,782 | |||||||||||
Entity number of employees (employee) | employee | 1,250 | |||||||||||
Expected value of goodwill to be tax deductible | 2,000 | 2,000 | ||||||||||
Percentage of controlling asset acquired (percent) | 70.00% | |||||||||||
Total consideration | $ 134,847 | |||||||||||
Consideration transferred, liabilities incurred | $ 7,065 | |||||||||||
Payment for contingent consideration liability | $ 84 | |||||||||||
Number of manufacturing facilities (facility) | facility | 13 | |||||||||||
Number of countries entity operates | country | 10 | |||||||||||
Fair value of interest held in acquiree immediately before subsequent acquisition | $ 52,543 | |||||||||||
Carrying value of equity investments | $ 57,327 | |||||||||||
Loss on remeasurement of previously held interest in acquiree | $ 4,784 | |||||||||||
Foreign currency translation losses reclassified out of AOCI | 897 | |||||||||||
Compositub | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisition | $ 9,956 | |||||||||||
Expected value of goodwill to be tax deductible | 1,965 | $ 1,965 | ||||||||||
Payment for contingent consideration liability | $ 371 | |||||||||||
Fair value adjustment to acquisition-date inventory | 50 | |||||||||||
Highland Packaging Solutions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisition | $ 141,039 | |||||||||||
Total consideration | 148,539 | |||||||||||
Contingent purchase liability | $ 7,500 | |||||||||||
Number of annual installments | installment | 2 | |||||||||||
Fair value adjustment to acquisition-date inventory | $ 0 | |||||||||||
Clear Lam Packaging, Inc. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisition | $ 164,951 | |||||||||||
Cash proceeds from working capital adjustments | $ 1,600 | |||||||||||
Packaging Holdings, Inc. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisition | $ 218,774 | |||||||||||
Number of manufacturing facilities (facility) | facility | 5 | |||||||||||
Packaging Holdings, Inc. | United States | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of manufacturing facilities (facility) | facility | 4 | |||||||||||
Packaging Holdings, Inc. | Mexico | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of manufacturing facilities (facility) | facility | 1 | |||||||||||
Packaging Holding and Clear Lam | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Fair value adjustment to acquisition-date inventory | $ 5,750 | |||||||||||
Acquisition-related costs | $ 4,345 | |||||||||||
Accrued expenses and other | Highland Packaging Solutions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Contingent purchase liability | $ 5,000 | |||||||||||
Other liabilities | Highland Packaging Solutions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Contingent purchase liability | $ 2,500 | |||||||||||
Conitex Sonoco Holding BVI Ltd. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Interest held in acquiree before subsequent acquisition (percent) | 30.00% | |||||||||||
Paper mill operations | Conitex Sonoco Holding BVI Ltd. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of manufacturing facilities (facility) | facility | 4 | |||||||||||
Cone and tube conversion operations | Conitex Sonoco Holding BVI Ltd. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of manufacturing facilities (facility) | facility | 7 | |||||||||||
Other production | Conitex Sonoco Holding BVI Ltd. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of manufacturing facilities (facility) | facility | 2 |
Acquisitions and dispositions_2
Acquisitions and dispositions - Acquisitions, Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,429,346 | $ 1,309,167 |
TEQ | ||
Business Acquisition [Line Items] | ||
Trade Accounts Receivable | 11,781 | |
Inventories | 4,262 | |
Property, Plant and Equipment | 42,005 | |
Goodwill | 75,595 | |
Other intangible assets | 56,170 | |
Payable to suppliers | (4,965) | |
Other net tangible assets/(liabilities) | 3,243 | |
Deferred income taxes, net | (799) | |
Net assets | 187,292 | |
Corenso | ||
Business Acquisition [Line Items] | ||
Trade Accounts Receivable | 8,673 | |
Inventories | 8,707 | |
Property, Plant and Equipment | 36,928 | |
Goodwill | 43,427 | |
Other intangible assets | 29,170 | |
Payable to suppliers | (5,963) | |
Other net tangible assets/(liabilities) | 405 | |
Deferred income taxes, net | (10,713) | |
Net assets | $ 110,634 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Schedule of Measurement Period Adjustments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||
Goodwill | $ (215) | |
Conitex Sonoco | ||
Business Acquisition [Line Items] | ||
Trade accounts receivable | $ (77) | |
Inventories | 0 | |
Property, plant and equipment | (199) | |
Goodwill | 2,246 | |
Other intangible assets | 300 | |
Accrued expenses and other | (1,782) | |
Other net tangible assets/(liabilities) | (404) | |
Additional cash consideration | 84 | |
Compositub | ||
Business Acquisition [Line Items] | ||
Trade accounts receivable | 203 | |
Inventories | 50 | |
Property, plant and equipment | (1,026) | |
Goodwill | (566) | (566) |
Other intangible assets | 1,888 | |
Accrued expenses and other | (138) | |
Other net tangible assets/(liabilities) | (40) | |
Additional cash consideration | 371 | |
Highland Packaging Solutions | ||
Business Acquisition [Line Items] | ||
Trade accounts receivable | 0 | |
Inventories | 0 | |
Property, plant and equipment | 1,895 | |
Goodwill | (1,895) | $ (1,895) |
Other intangible assets | 0 | |
Accrued expenses and other | 0 | |
Other net tangible assets/(liabilities) | 0 | |
Additional cash consideration | $ 0 |
Acquisitions and dispositions_4
Acquisitions and dispositions - Acquisitions, Supplemental Table (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / shares | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Net sales | $ 5,143,066 |
Net income attributable to Sonoco | $ 178,205 |
Earnings per share: | |
Pro forma basic (usd per share) | $ / shares | $ 1.78 |
Pro forma diluted (usd per share) | $ / shares | $ 1.77 |
Packaging Holding and Clear Lam | |
Earnings per share: | |
Actual net sales | $ 215,227 |
Actual net income | $ 3,886 |
Restructuring and asset impai_3
Restructuring and asset impairment - Total Restructuring and Asset Impairment Charges Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and restructuring-related asset impairment charges | $ 44,819 | $ 40,071 | $ 19,834 | ||||||||
Other asset impairments | 15,061 | 0 | 18,585 | ||||||||
Restructuring/Asset impairment charges | $ 29,238 | $ 6,615 | $ 13,355 | $ 10,672 | $ 11,380 | $ 22,061 | $ 3,567 | $ 3,063 | 59,880 | 40,071 | 38,419 |
Corporate | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and restructuring-related asset impairment charges | 2,064 | 233 | 463 | ||||||||
Consumer Packaging | Operating segments | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and restructuring-related asset impairment charges | 34,850 | 15,205 | 6,751 | ||||||||
Display and Packaging | Operating segments | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and restructuring-related asset impairment charges | 2,459 | 18,800 | 2,048 | ||||||||
Paper and Industrial Converted Products | Operating segments | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and restructuring-related asset impairment charges | 4,927 | 4,301 | 7,410 | ||||||||
Protective Solutions | Operating segments | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and restructuring-related asset impairment charges | 519 | 1,532 | 3,162 | ||||||||
Severance and Termination Benefits | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and restructuring-related asset impairment charges | 24,864 | 15,224 | 12,684 | ||||||||
Asset Impairment/Disposal of Assets | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and restructuring-related asset impairment charges | 9,674 | 6,193 | 120 | ||||||||
Other Costs | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and restructuring-related asset impairment charges | $ 10,281 | $ 18,654 | $ 7,030 |
Restructuring and asset impai_4
Restructuring and asset impairment - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($)position | Dec. 31, 2019USD ($)facilityposition | Dec. 31, 2018USD ($)facility | Dec. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Future additional charges expected in connection with previous restructuring | $ 2,800 | ||||
Number of facilities closed (facility) | facility | 5 | ||||
Elimination of positions due to realignment of cost structure (position) | 223 | 223 | 120 | ||
Restructuring and restructuring-related asset impairment charges | $ 44,819 | $ 40,071 | $ 19,834 | ||
Gain (loss ) on sale of land and buildings | $ (746) | (8,635) | (2,039) | ||
Termination fee | 9,600 | ||||
Foreign exchange remeasurement losses on net monetary assets | 425 | ||||
Number 9 Boiler | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Write off / impairment of assets | $ 17,822 | ||||
Consumer Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of facilities closed (facility) | facility | 3 | ||||
Elimination of Forming Film Line | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and restructuring-related asset impairment charges | $ 4,124 | ||||
Other restructuring activity | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and restructuring-related asset impairment charges | 1,827 | 1,677 | |||
Closure of Packaging Services Center in Mexico | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Termination fee | $ 1,931 | ||||
Asset Impairment, Disposal of Assets, Packaging Plant | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and restructuring-related asset impairment charges | $ 4,054 | 10,099 | |||
Impairment of PrimaPak Fixed Assets and Intangible Assets | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and restructuring-related asset impairment charges | $ 908 | ||||
U.K. | Consumer Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of facilities closed (facility) | facility | 1 | ||||
Norway | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of facilities closed (facility) | facility | 1 | ||||
Norway | Consumer Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of facilities closed (facility) | facility | 1 | ||||
Estonia | Consumer Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of facilities closed (facility) | facility | 1 | ||||
Germany | Sale of Fixed Assets and Inventory | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and restructuring-related asset impairment charges | $ 3,663 | ||||
California | Closure of Packaging Plant and Sale of Vacated Buildings | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and restructuring-related asset impairment charges | 909 | ||||
Malaysia | Sale of Fixed Assets and Inventory | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and restructuring-related asset impairment charges | 325 | ||||
Connecticut | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Proceeds from sale of building | 929 | ||||
Release of environmental reserve | (675) | ||||
Write off / impairment of assets | 431 | ||||
Connecticut | Buildings | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Gain (loss ) on sale of land and buildings | $ 1,173 | ||||
Alabama | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of facilities closed (facility) | facility | 1 | ||||
Canada | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of facilities closed (facility) | facility | 1 | ||||
Indonesia | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of facilities closed (facility) | facility | 1 | ||||
Russia | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of facilities closed (facility) | facility | 1 | ||||
Atlanta, GA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and restructuring-related asset impairment charges | $ 4,516 | ||||
Proceeds from sale of building | 22,163 | ||||
Net fixed assets | 24,869 | ||||
Inventory | $ 1,810 | ||||
Venezuela | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other asset impairments | $ 338 |
Restructuring and asset impai_5
Restructuring and asset impairment - Restructuring Accrual Activity for Given Years (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Liability, beginning balance | $ 7,572 | $ 7,146 | |
Charges | 44,819 | 40,071 | $ 19,834 |
Cash receipts/(payments) | (26,144) | (6,819) | |
Asset write downs/disposals | (14,899) | (32,759) | |
Foreign currency translation | 9 | (67) | |
Liability, ending balance | 11,357 | 7,572 | 7,146 |
Severance and Termination Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Liability, beginning balance | 5,293 | 5,982 | |
Charges | 24,864 | 15,224 | 12,684 |
Cash receipts/(payments) | (19,386) | (15,844) | |
Asset write downs/disposals | 0 | 0 | |
Foreign currency translation | (6) | (69) | |
Liability, ending balance | 10,765 | 5,293 | 5,982 |
Asset Impairment/Disposal of Assets | |||
Restructuring Reserve [Roll Forward] | |||
Liability, beginning balance | 0 | 0 | |
Charges | 9,674 | 6,193 | 120 |
Cash receipts/(payments) | 5,225 | 26,566 | |
Asset write downs/disposals | (14,899) | (32,759) | |
Foreign currency translation | 0 | 0 | |
Liability, ending balance | 0 | 0 | 0 |
Other Costs | |||
Restructuring Reserve [Roll Forward] | |||
Liability, beginning balance | 2,279 | 1,164 | |
Charges | 10,281 | 18,654 | |
Cash receipts/(payments) | (11,983) | (17,541) | |
Asset write downs/disposals | 0 | 0 | |
Foreign currency translation | 15 | 2 | |
Liability, ending balance | $ 592 | $ 2,279 | $ 1,164 |
Book overdrafts and cash pool_2
Book overdrafts and cash pooling - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 145,283 | $ 120,389 |
Outstanding A/P check | ||
Cash and Cash Equivalents [Line Items] | ||
Outstanding A/P checks | 8,796 | 13,205 |
Outstanding payroll checks | ||
Cash and Cash Equivalents [Line Items] | ||
Outstanding A/P checks | 38 | 114 |
Notional Pooling Arrangement | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 4,409 | $ 2,562 |
Property, plant and equipment -
Property, plant and equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 114,443 | $ 110,698 |
Timber resources | 42,338 | 41,862 |
Buildings | 560,334 | 535,433 |
Machinery and equipment | 3,077,500 | 2,977,156 |
Construction in progress | 143,021 | 159,661 |
Property, plant and equipment, gross | 3,937,636 | 3,824,810 |
Accumulated depreciation and depletion | (2,650,794) | (2,590,989) |
Property, plant and equipment, net | $ 1,286,842 | $ 1,233,821 |
Property, plant and equipment_2
Property, plant and equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Estimated costs for completion of capital additions under construction | $ 102,836 | ||
Depreciation and depletion expense | $ 186,540 | $ 188,533 | $ 178,049 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)renewal_option | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Number of renewal options | renewal_option | 1 | |
Contract lease terms | 10 years | |
Associated contract payments on leases not yet commenced | $ 6,200 | |
Lease terms of leases not yet commenced | 12 years | |
Total rental expense under operating leases | $ 80,300 | $ 68,900 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal term | 50 years |
Leases - Balance sheet location
Leases - Balance sheet locations and values of the Company's lease assets and lease liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease assets | $ 298,393 |
Finance lease assets | 34,858 |
Total lease assets | 333,251 |
Current operating lease liabilities | 54,048 |
Current finance lease liabilities | 10,803 |
Total current lease liabilities | 64,851 |
Noncurrent operating lease liabilities | 253,992 |
Noncurrent finance lease liabilities | 22,274 |
Total noncurrent lease liabilities | 276,266 |
Total lease liabilities | $ 341,117 |
Leases - Components of the Comp
Leases - Components of the Company's total lease cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 61,845 |
Amortization of lease asset | 6,965 |
Interest on lease liabilities | 763 |
Variable lease cost | 51,616 |
Total lease cost | $ 121,189 |
Leases - Five-year maturity sch
Leases - Five-year maturity schedule of Company's lease liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 55,681 |
2021 | 49,474 |
2022 | 43,418 |
2023 | 39,831 |
2024 | 33,424 |
Beyond 2024 | 167,463 |
Total lease payments | 389,291 |
Less: interest | 81,251 |
Lease liabilities | 308,040 |
Finance Leases | |
2020 | 11,124 |
2021 | 9,258 |
2022 | 7,322 |
2023 | 4,569 |
2024 | 2,355 |
Beyond 2024 | 227 |
Total lease payments | 34,855 |
Less: interest | 1,778 |
Finance lease obligations | 33,077 |
Total | |
2020 | 66,805 |
2021 | 58,732 |
2022 | 50,740 |
2023 | 44,400 |
2024 | 35,779 |
2025 | 167,690 |
Total lease payments | 424,146 |
Less: Interest | 83,029 |
Lease Liabilities | $ 341,117 |
Leases - Company's weighted ave
Leases - Company's weighted average remaining lease term and discount rates used (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Weighted average remaining lease term - Operating leases | 10 years 2 months 12 days |
Weighted average remaining lease term - Finance leases | 3 years 9 months 18 days |
Weighted average discount rate - Operating leases (percent) | 4.74% |
Weighted average discount rate - Finance leases (percent) | 2.97% |
Operating cash flows used by operating leases | $ 61,532 |
Operating cash flows used by finance leases | 763 |
Financing cash flows used by finance leases | 7,989 |
Leased assets obtained in exchange for new operating lease liabilities | 28,762 |
Leased assets obtained in exchange for new finance lease liabilities | $ 24,106 |
Goodwill and other intangible_3
Goodwill and other intangible assets - Changes in Goodwill by Segment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2019 | $ 1,309,167 |
Acquisitions | 119,022 |
Measurement period adjustments | (215) |
Foreign currency translation | 1,372 |
Balance as of December 31, 2019 | 1,429,346 |
Consumer Packaging | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2019 | 617,332 |
Acquisitions | 75,595 |
Measurement period adjustments | (2,461) |
Foreign currency translation | 777 |
Balance as of December 31, 2019 | 691,243 |
Display and Packaging | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2019 | 203,414 |
Acquisitions | 0 |
Measurement period adjustments | 0 |
Foreign currency translation | 0 |
Balance as of December 31, 2019 | 203,414 |
Paper and Industrial Converted Products | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2019 | 256,947 |
Acquisitions | 43,427 |
Measurement period adjustments | 2,246 |
Foreign currency translation | 421 |
Balance as of December 31, 2019 | 303,041 |
Protective Solutions | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2019 | 231,474 |
Acquisitions | 0 |
Measurement period adjustments | |
Foreign currency translation | 174 |
Balance as of December 31, 2019 | $ 231,648 |
Goodwill and other intangible_4
Goodwill and other intangible assets - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2019 | Aug. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | |||||||
Goodwill, acquired during period | $ 119,022 | ||||||
Measurement period adjustments | (215) | ||||||
Goodwill | $ 1,429,346 | $ 1,429,346 | $ 1,429,346 | 1,429,346 | $ 1,309,167 | ||
Aggregate amortization expenses | 51,580 | $ 47,177 | $ 38,165 | ||||
Amortization expense on intangible assets in 2020 | 54,200 | 54,200 | 54,200 | 54,200 | |||
Amortization expense on intangible assets in 2021 | 52,500 | 52,500 | 52,500 | 52,500 | |||
Amortization expense on intangible assets in 2022 | 49,700 | 49,700 | 49,700 | 49,700 | |||
Amortization expense on intangible assets in 2023 | 44,500 | 44,500 | 44,500 | 44,500 | |||
Amortization expense on intangible assets in 2024 | $ 35,000 | $ 35,000 | $ 35,000 | $ 35,000 | |||
Display and Packaging Reporting Unit | |||||||
Goodwill [Line Items] | |||||||
Excess of fair value over carrying amount (percent) | 35.00% | 35.00% | 35.00% | 35.00% | |||
Projected reduction in operating profits necessary for fair value to drop below carrying value (percent) | (27.00%) | (27.00%) | (27.00%) | (27.00%) | |||
Display and Packaging Reporting Unit | Discount rate | |||||||
Goodwill [Line Items] | |||||||
Discount rate (percent) | 8.90% | 8.90% | 8.90% | 8.90% | |||
Projected discount rate necessary for estimated fair value to fall below carrying value (percent) | 12.50% | 12.50% | 12.50% | 12.50% | |||
Patents | |||||||
Goodwill [Line Items] | |||||||
Adjustment to intangibles | $ 340 | ||||||
Display and Packaging Reporting Unit | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 203,414 | $ 203,414 | 203,414 | $ 203,414 | |||
Corenso | |||||||
Goodwill [Line Items] | |||||||
Goodwill, acquired during period | $ 43,427 | ||||||
Goodwill | 43,427 | 43,427 | 43,427 | 43,427 | |||
Intangible assets acquired | 29,170 | ||||||
Corenso | Customer lists | |||||||
Goodwill [Line Items] | |||||||
Intangible assets acquired | $ 1,888 | ||||||
TEQ | |||||||
Goodwill [Line Items] | |||||||
Goodwill, acquired during period | 75,595 | ||||||
Goodwill | 75,595 | 75,595 | $ 75,595 | 75,595 | |||
Intangible assets acquired | 56,170 | ||||||
TEQ | Customer lists | |||||||
Goodwill [Line Items] | |||||||
Intangible assets acquired | $ 300 | ||||||
Compositub | |||||||
Goodwill [Line Items] | |||||||
Measurement period adjustments | (566) | (566) | |||||
Highland Packaging Solutions | |||||||
Goodwill [Line Items] | |||||||
Measurement period adjustments | $ (1,895) | (1,895) | |||||
Conitex Sonoco Holding BVI Ltd. | |||||||
Goodwill [Line Items] | |||||||
Measurement period adjustments | $ 2,246 |
Goodwill and other intangible_5
Goodwill and other intangible assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Intangible Assets, Gross: | ||
Other Intangible Assets, Gross | $ 717,381 | $ 632,844 |
Accumulated Amortization | (329,089) | (280,807) |
Other Intangible Assets, Net | 388,292 | 352,037 |
Patents | ||
Other Intangible Assets, Gross: | ||
Other Intangible Assets, Gross | 26,096 | 22,509 |
Accumulated Amortization | (11,669) | (9,539) |
Customer lists | ||
Other Intangible Assets, Gross: | ||
Other Intangible Assets, Gross | 632,036 | 548,038 |
Accumulated Amortization | (287,831) | (246,946) |
Trade names | ||
Other Intangible Assets, Gross: | ||
Other Intangible Assets, Gross | 32,427 | 31,174 |
Accumulated Amortization | (9,985) | (7,413) |
Proprietary technology | ||
Other Intangible Assets, Gross: | ||
Other Intangible Assets, Gross | 24,525 | 28,748 |
Accumulated Amortization | (17,910) | (15,400) |
Land use rights | ||
Other Intangible Assets, Gross: | ||
Other Intangible Assets, Gross | 172 | 282 |
Accumulated Amortization | (51) | (48) |
Other | ||
Other Intangible Assets, Gross: | ||
Other Intangible Assets, Gross | 2,125 | 2,093 |
Accumulated Amortization | $ (1,643) | $ (1,461) |
Debt - Debt Instruments (Detail
Debt - Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | May 20, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Finance lease obligations | $ 33,077 | ||
Total debt | 1,681,369 | $ 1,385,162 | |
Less current portion and short-term notes | 488,234 | 195,445 | |
Long-term Debt | $ 1,193,135 | 1,189,717 | |
5.75% debentures due November 2040 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percent) | 5.75% | ||
Long-term debt | $ 599,244 | 599,208 | |
4.375% debentures due November 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percent) | 4.375% | ||
Long-term debt | $ 249,428 | 249,116 | |
9.2% debentures due August 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percent) | 9.20% | ||
Long-term debt | $ 4,318 | 4,315 | |
1.00% Euro loan due May 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percent) | 1.00% | ||
Long-term debt | $ 167,272 | 169,976 | |
Term loan, due May 2020 | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | 200,000 | $ 200,000 | 0 |
Term loan, due July 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 146,569 | $ 158,949 | |
Commercial paper, average rate of 2.40% in 2019 and 2.15% in 2018 | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate (percent) | 2.40% | 2.15% | |
Long-term debt | $ 250,000 | $ 120,000 | |
Other foreign denominated debt, average rate of 5.3% in 2019 and 3.7% in 2018 | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate (percent) | 5.30% | 3.70% | |
Long-term debt | $ 16,734 | $ 57,867 | |
Other notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 14,727 | $ 25,731 |
Debt - Additional Information (
Debt - Additional Information (Details) | Dec. 31, 2019USD ($) | May 17, 2019 | Jul. 20, 2017USD ($)numberOfBanks | Dec. 31, 2018USD ($) | May 20, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Unused short-term lines of credit | $ 237,000,000 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 5 years | ||||
Maximum borrowing capacity | $ 500,000,000 | ||||
Medium-term Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 5 years | ||||
Maximum borrowing capacity | $ 250,000,000 | ||||
Annual amortization payments | $ 12,500,000 | ||||
Debt repaid | $ 75,000,000 | ||||
Medium-term Notes | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis points | 112.50% | ||||
Commercial Paper | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 500,000,000 | ||||
Eight Banks Syndicate | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 750,000,000 | ||||
Number of banks syndicated | numberOfBanks | 8 | ||||
Term loan, due May 2020 | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 364 days | ||||
Loan agreement | $ 200,000,000 | 0 | $ 200,000,000 | ||
Term loan, due May 2020 | Term Loan Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis points | 100.00% | ||||
Commercial Paper | |||||
Debt Instrument [Line Items] | |||||
Loan agreement | $ 250,000,000 | $ 120,000,000 |
Debt - Maturities (Details)
Debt - Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
Debt maturing, 2020 | $ 488,234 |
Debt maturing, 2021 | 444,715 |
Debt maturing, 2022 | 130,812 |
Debt maturing, 2023 | 6,639 |
Debt maturing, 2024 | $ 3,646 |
Financial instruments and der_3
Financial instruments and derivatives - Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Long-term debt, Carrying Amount | $ 1,193,135 | $ 1,189,717 |
Long-term debt, Fair Value | $ 1,351,397 | $ 1,270,521 |
Financial instruments and der_4
Financial instruments and derivatives - Additional Information (Details) BTU in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)BTUt | Dec. 31, 2018USD ($) | Jan. 31, 2020USD ($) | |
Derivative [Line Items] | |||
Anticipated usage percentage of natural gas covered by a swap contract for the first succeeding fiscal year | 61.00% | ||
Anticipated usage percentage of aluminum covered by a swap contract for the first succeeding fiscal year | 23.00% | ||
Fair value of commodity cash flow hedges | $ (1,625,000) | $ (1,571,000) | |
Commodity gain (loss) expected to be reclassified to the income statement during the next 12 months | (1,578,000) | ||
Fair value of foreign currency cash flow hedges | 1,058,000 | (1,712,000) | |
Foreign currency gain (loss) expected to be reclassified to the income statement during the next 12 months | 1,057,000 | ||
Total fair value of other derivatives not designated as hedging instruments | $ 54,000 | 166,000 | |
Natural gas swaps | |||
Derivative [Line Items] | |||
Approximate amount of commodity covered by swap contracts outstanding (btu) | BTU | 4.4 | ||
Aluminum Swaps | |||
Derivative [Line Items] | |||
Approximate amount of commodity covered by swap contracts outstanding (tonne) | t | 1,225 | ||
Foreign exchange forward contract | |||
Derivative [Line Items] | |||
Net position of derivative | $ 1,000 | (305,000) | |
Cross currency swap | Subsequent event | |||
Derivative [Line Items] | |||
Notional amount | $ 250,000,000 | ||
Cross currency swap | U.S. Dollars | Subsequent event | |||
Derivative [Line Items] | |||
Fixed interest rate | 5.75% | ||
Cross currency swap | Euros | Subsequent event | |||
Derivative [Line Items] | |||
Fixed interest rate | 3.856% | ||
Accumulated Other Comprehensive Loss | |||
Derivative [Line Items] | |||
Amounts reclassified from accumulated other comprehensive loss | $ (107,000) | $ 88,000 |
Financial instruments and der_5
Financial instruments and derivatives - Net Positions of Foreign Contracts (Details) - Dec. 31, 2019 ₽ in Thousands, ₺ in Thousands, € in Thousands, £ in Thousands, zł in Thousands, kr in Thousands, Kč in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | SEK (kr) | AUD ($) | EUR (€) | PLN (zł) | GBP (£) | TRY (₺) | CZK (Kč) | NZD ($) | MXN ($) | CAD ($) | COP ($) | RUB (₽) |
Long | ||||||||||||
Derivative [Line Items] | ||||||||||||
Net purchase/(sell) position of derivatives | $ 320,964 | $ 10,931 | $ 10,536,995 | |||||||||
Long | Foreign Currency Cash Flow Hedges | ||||||||||||
Derivative [Line Items] | ||||||||||||
Net purchase/(sell) position of derivatives | zł 89,750 | £ 6,187 | ₺ 3,419 | Kč 40,333 | $ 335,494 | $ 20,812 | $ 15,486,745 | |||||
Short | Foreign Currency Cash Flow Hedges | ||||||||||||
Derivative [Line Items] | ||||||||||||
Net purchase/(sell) position of derivatives | kr 3,933 | $ 929 | € 30,323 | $ 439 | ₽ 182,187 |
Financial instruments and der_6
Financial instruments and derivatives - Net Position of Other Derivatives Contracts (Details) - Dec. 31, 2019 $ in Thousands, $ in Thousands, $ in Thousands | MXN ($) | CAD ($) | COP ($) |
Long | |||
Derivative [Line Items] | |||
Net purchase/(sell) position of derivatives | $ 320,964 | $ 10,931 | $ 10,536,995 |
Financial instruments and der_7
Financial instruments and derivatives - Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives designated as hedging instruments | Commodity contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives as hedging instruments, assets | $ 0 | $ 282 |
Derivatives designated as hedging instruments | Commodity contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives as hedging instruments, assets | 0 | 0 |
Derivatives designated as hedging instruments | Commodity contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives hedging instrument, liabilities | (1,625) | (1,843) |
Derivatives designated as hedging instruments | Commodity contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives hedging instrument, liabilities | 0 | (10) |
Derivatives designated as hedging instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives as hedging instruments, assets | 1,236 | 770 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives hedging instrument, liabilities | (178) | (2,482) |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives as hedging instruments, assets | 88 | 727 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives hedging instrument, liabilities | $ (34) | $ (561) |
Financial instruments and der_8
Financial instruments and derivatives - Effect of Derivative Instruments on Financial Performance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Revenue | $ 1,308,850 | $ 1,353,931 | $ 1,359,721 | $ 1,351,705 | $ 1,355,616 | $ 1,364,762 | $ 1,366,373 | $ 1,304,187 | $ 5,374,207 | $ 5,390,938 | $ 5,036,650 |
Cost of sales | 4,316,378 | 4,349,932 | $ 4,077,998 | ||||||||
Gains and Losses on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Revenue | 1,381 | (203) | |||||||||
Cost of sales | 1,488 | (95) | |||||||||
Foreign exchange contracts | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | 2,495 | (2,354) | |||||||||
Foreign exchange contracts | Gains and Losses on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Revenue | 1,381 | (203) | |||||||||
Cost of sales | 1,758 | 20 | |||||||||
Foreign exchange contracts | Net sales | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) | 1,381 | (203) | |||||||||
Foreign exchange contracts | Cost of sales | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) | (1,758) | (20) | |||||||||
Foreign exchange contracts | Cost of sales | Derivatives not designated as hedging instruments | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain or (Loss) Recognized | 0 | 0 | |||||||||
Foreign exchange contracts | Selling, general and administrative | Derivatives not designated as hedging instruments | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain or (Loss) Recognized | (704) | 41 | |||||||||
Commodity contracts | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | 216 | 258 | |||||||||
Commodity contracts | Gains and Losses on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Revenue | 0 | 0 | |||||||||
Cost of sales | (270) | (115) | |||||||||
Commodity contracts | Cost of sales | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) | $ 270 | $ 115 |
Fair value measurements - Asset
Fair value measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Deferred compensation plan assets | $ 260 | |
Total postretirement benefit plan assets | $ 1,696,401 | 1,329,751 |
Common collective trust | ||
Assets | ||
Total postretirement benefit plan assets | 1,212,114 | 862,565 |
Mutual funds | ||
Assets | ||
Total postretirement benefit plan assets | 171,198 | 157,088 |
Fixed income securities | ||
Assets | ||
Total postretirement benefit plan assets | 192,598 | 175,543 |
Short-term investments | ||
Assets | ||
Total postretirement benefit plan assets | 1,201 | 1,166 |
Hedge fund of funds | ||
Assets | ||
Total postretirement benefit plan assets | 75,108 | 71,354 |
Real estate funds | ||
Assets | ||
Total postretirement benefit plan assets | 938 | 61,249 |
Cash and accrued income | ||
Assets | ||
Total postretirement benefit plan assets | 43,244 | 786 |
Derivatives designated as hedging instruments | Commodity contracts | ||
Assets | ||
Derivatives | (1,625) | (1,571) |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Assets | ||
Derivatives | 1,058 | (1,712) |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Assets | ||
Derivatives | 54 | 166 |
Assets measured at NAV | ||
Assets | ||
Deferred compensation plan assets | 0 | |
Total postretirement benefit plan assets | 1,288,160 | 995,168 |
Assets measured at NAV | Common collective trust | ||
Assets | ||
Total postretirement benefit plan assets | 1,212,114 | 862,565 |
Assets measured at NAV | Mutual funds | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Assets measured at NAV | Fixed income securities | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Assets measured at NAV | Short-term investments | ||
Assets | ||
Total postretirement benefit plan assets | ||
Assets measured at NAV | Hedge fund of funds | ||
Assets | ||
Total postretirement benefit plan assets | 75,108 | 71,354 |
Assets measured at NAV | Real estate funds | ||
Assets | ||
Total postretirement benefit plan assets | 938 | 61,249 |
Assets measured at NAV | Cash and accrued income | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Assets measured at NAV | Derivatives designated as hedging instruments | Commodity contracts | ||
Assets | ||
Derivatives | 0 | 0 |
Assets measured at NAV | Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Assets | ||
Derivatives | 0 | 0 |
Assets measured at NAV | Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Assets | ||
Derivatives | 0 | 0 |
Level 1 | ||
Assets | ||
Deferred compensation plan assets | 260 | |
Total postretirement benefit plan assets | 43,267 | 824 |
Level 1 | Common collective trust | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 1 | Mutual funds | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 1 | Fixed income securities | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 1 | Short-term investments | ||
Assets | ||
Total postretirement benefit plan assets | 23 | 38 |
Level 1 | Hedge fund of funds | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 1 | Real estate funds | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 1 | Cash and accrued income | ||
Assets | ||
Total postretirement benefit plan assets | 43,244 | 786 |
Level 1 | Derivatives designated as hedging instruments | Commodity contracts | ||
Assets | ||
Derivatives | 0 | 0 |
Level 1 | Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Assets | ||
Derivatives | 0 | 0 |
Level 1 | Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Assets | ||
Derivatives | 0 | 0 |
Level 2 | ||
Assets | ||
Deferred compensation plan assets | 0 | |
Total postretirement benefit plan assets | 364,974 | 333,759 |
Level 2 | Common collective trust | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 2 | Mutual funds | ||
Assets | ||
Total postretirement benefit plan assets | 171,198 | 157,088 |
Level 2 | Fixed income securities | ||
Assets | ||
Total postretirement benefit plan assets | 192,598 | 175,543 |
Level 2 | Short-term investments | ||
Assets | ||
Total postretirement benefit plan assets | 1,178 | 1,128 |
Level 2 | Hedge fund of funds | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 2 | Real estate funds | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 2 | Cash and accrued income | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 2 | Derivatives designated as hedging instruments | Commodity contracts | ||
Assets | ||
Derivatives | (1,625) | (1,571) |
Level 2 | Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Assets | ||
Derivatives | 1,058 | (1,712) |
Level 2 | Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Assets | ||
Derivatives | 54 | 166 |
Level 3 | ||
Assets | ||
Deferred compensation plan assets | 0 | |
Total postretirement benefit plan assets | 0 | 0 |
Level 3 | Common collective trust | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 3 | Mutual funds | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 3 | Fixed income securities | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 3 | Short-term investments | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 3 | Hedge fund of funds | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 3 | Real estate funds | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 3 | Cash and accrued income | ||
Assets | ||
Total postretirement benefit plan assets | 0 | 0 |
Level 3 | Derivatives designated as hedging instruments | Commodity contracts | ||
Assets | ||
Derivatives | 0 | 0 |
Level 3 | Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Assets | ||
Derivatives | 0 | 0 |
Level 3 | Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Assets | ||
Derivatives | $ 0 | $ 0 |
Fair value measurements - Addit
Fair value measurements - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Percentage of postretirement benefit plan assets comprised of pension plan assets (more than) | 99.00% |
Share-based compensation plan_2
Share-based compensation plans - Additional Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | 48 Months Ended | ||||
Dec. 31, 2019USD ($)installment$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2014 | Dec. 31, 2019USD ($)installment$ / sharesshares | Apr. 17, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of shares of common stock issued (in shares) | shares | 12,000,000 | |||||
Shares available for grant (in shares) | shares | 10,765,398 | 10,765,398 | ||||
Compensation cost for share-based payment arrangements | $ 14,334 | $ 10,730 | $ 13,488 | |||
Related tax benefit recognized in net income | 3,500 | 2,678 | 5,058 | |||
Additional net excess tax benefit realized | 3,520 | 3,528 | 2,453 | |||
Noncash stock-based compensation associated performance contingent restricted stock units | 5,171 | 4,725 | 3,896 | |||
Compensation deferrals in current year | $ 2,585 | $ 1,452 | $ 2,850 | |||
Stock Appreciation Rights (SARs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected life of SARs | 6 years | 6 years | 6 years | |||
Total unrecognized compensation cost related to nonvested awards | $ 2,413 | $ 2,413 | ||||
Weighted-average period | 24 months | |||||
Aggregate intrinsic value of options and SARs exercised | $ 11,836 | $ 9,029 | $ 3,786 | |||
Weighted-average fair value of awards granted (usd per share) | $ / shares | $ 8.30 | $ 6.55 | $ 7.29 | |||
Weighted average remaining contractual life for SAR's, outstanding | 7 years 6 months | |||||
Weighted average remaining contractual life for SAR's, exercisable | 6 years | |||||
Aggregate intrinsic value for SAR's, outstanding | $ 13,375 | 13,375 | ||||
Aggregate intrinsic value for SAR's, exercisable | $ 8,931 | $ 8,931 | ||||
Fair market value of the Company’s stock used to calculate intrinsic value (usd per share) | $ / shares | $ 61.72 | $ 61.72 | ||||
Stock Appreciation Rights (SARs) | After Two Thousand Fifteen | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Minimum vesting period | 3 years | |||||
Stock Appreciation Rights (SARs) | After Two Thousand Six | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Minimum vesting period | 2 years | |||||
Stock Appreciation Rights (SARs) | After Two Thousand Fourteen | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Minimum vesting period | 3 years | |||||
Term of award | 10 years | |||||
Stock Options and Stock Appreciation Rights Sars | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation cost for share-based payment arrangements | $ 3,227 | $ 2,415 | $ 3,719 | |||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost related to nonvested awards | $ 6,806 | $ 6,806 | ||||
Weighted-average period | 19 months | |||||
Performance period | 3 years | |||||
Number of common shares to be converted into for each share upon conversion | 1 | 1 | ||||
Granted, weighted-average grant date fair value (usd per share) | $ / shares | $ 56.04 | $ 46.33 | $ 50.11 | |||
Performance Shares | 2019 PCSU | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total performance contingent restricted stock units vested , minimum (in shares) | shares | 0 | |||||
Total performance contingent restricted stock units, maximum (in shares) | shares | 228,650 | |||||
Performance Shares | 2018 PCSU | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total performance contingent restricted stock units vested , minimum (in shares) | shares | 0 | |||||
Total performance contingent restricted stock units, maximum (in shares) | shares | 253,962 | |||||
Performance Shares | 2017 PCSU | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested units in period (in shares) | shares | 84,522 | |||||
Fair value of vested units | $ 5,217 | |||||
Performance Shares | 2016 PCSU | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested units in period (in shares) | shares | 132,534 | |||||
Fair value of vested units | $ 7,042 | |||||
Performance Shares | 2015 PCSU | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested units in period (in shares) | shares | 135,695 | |||||
Fair value of vested units | $ 7,211 | |||||
Restricted Stock Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested units in period (in shares) | shares | 0 | |||||
Granted, weighted-average grant date fair value (usd per share) | $ / shares | $ 57.76 | |||||
Restricted Stock Awards | Executives and Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Minimum vesting period | 3 years | |||||
Total unrecognized compensation cost related to nonvested awards | $ 3,768 | $ 3,768 | ||||
Weighted-average period | 33 months | |||||
Fair value of vested units | $ 3,217 | $ 6,900 | $ 2,790 | |||
Granted, weighted-average grant date fair value (usd per share) | $ / shares | $ 57.76 | $ 48.36 | $ 51.68 | |||
Noncash stock-based compensation associated performance contingent restricted stock units | $ 3,351 | $ 2,138 | $ 3,554 | |||
Restricted Stock Awards | Share-based Compensation Award, Tranche One | Executives and Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | 33.33% | ||||
Restricted Stock Awards | Share-based Compensation Award, Tranche Two | Executives and Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | 33.33% | ||||
Restricted Stock Awards | Share-based Compensation Award, Tranche Three | Executives and Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | 33.33% | ||||
Restricted Stock Awards | Share-based Compensation Award, Tranche Four | Executives and Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
Restricted Stock Awards | Share-based Compensation Award, Tranche Five | Executives and Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
Deferred Stock Equivalent Units | Share-based Compensation Award, Tranche One | Non-employee directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of annual distribution installments | installment | 1 | 1 | ||||
Deferred Stock Equivalent Units | Share-based Compensation Award, Tranche Two | Non-employee directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of annual distribution installments | installment | 3 | 3 | ||||
Deferred Stock Equivalent Units | Share-based Compensation Award, Tranche Three | Non-employee directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of annual distribution installments | installment | 5 | 5 |
Share-based compensation plan_3
Share-based compensation plans - Estimated Fair Value of all SARs Applying Assumptions (Details) - Stock Appreciation Rights (SARs) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 2.70% | 3.10% | 2.70% |
Expected stock price volatility | 16.60% | 16.20% | 17.20% |
Risk-free interest rate | 2.60% | 2.80% | 2.00% |
Expected life of SARs | 6 years | 6 years | 6 years |
Share-based compensation plan_4
Share-based compensation plans - Company's SARs (Details) - Stock Appreciation Rights (SARs) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Balance (in shares) | 1,832,358 |
Vested (in shares) | 0 |
Granted (in shares) | 543,278 |
Exercised (in shares) | (664,797) |
Forfeited/Expired (in shares) | (148,716) |
Ending Balance (in shares) | 1,562,123 |
Exercisable (in shares) | 655,110 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning Balance, weighted-average exercise price (usd per share) | $ / shares | $ 47.41 |
Granted, weighted-average exercise price (usd per share) | $ / shares | 60.76 |
Exercised, weighted-average exercise price (usd per share) | $ / shares | 43.92 |
Forfeited/Expired, weighted average exercise price (usd per share) | $ / shares | 53.36 |
Ending Balance, weighted average exercise price (usd per share) | $ / shares | 52.95 |
Exercisable, weighted-average exercise price (usd per share) | $ / shares | $ 47.69 |
Nonvested | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Balance (in shares) | 1,119,602 |
Vested (in shares) | 620,026 |
Granted (in shares) | 543,278 |
Exercised (in shares) | 0 |
Forfeited/Expired (in shares) | (135,841) |
Ending Balance (in shares) | 907,013 |
Exercisable (in shares) | 0 |
Vested | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Balance (in shares) | 712,756 |
Vested (in shares) | 620,026 |
Granted (in shares) | 0 |
Exercised (in shares) | (664,797) |
Forfeited/Expired (in shares) | (12,875) |
Ending Balance (in shares) | 655,110 |
Exercisable (in shares) | 655,110 |
Share-based compensation plan_5
Share-based compensation plans - Activity Related to PCSUs, Restricted Stock Units and Deferred Compensation Plans (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Performance Contingent Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning Balance (in shares) | 651,819 |
Granted (in shares) | 115,412 |
Performance adjustments (in shares) | (42,866) |
Vested (in shares) | 0 |
Converted (in shares) | (177,902) |
Cancelled (in shares) | (18,720) |
Dividend equivalents (in shares) | 4,190 |
Ending Balance (in shares) | 531,933 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance, weighted-average grant date fair value (usd per share) | $ / shares | $ 40.21 |
Granted, weighted-average grant date fair value (usd per share) | $ / shares | 56.04 |
Performance adjustments, weighted-average grant date fair value (usd per share) | $ / shares | 45.75 |
Converted, weighted-average grant date fair value (usd per share) | $ / shares | 35.55 |
Cancelled, weighted-average grant date fair value (usd per share) | $ / shares | 47.75 |
Dividend equivalents, weighted-average grant date fair value (usd per share) | $ / shares | 60.42 |
Ending Balance, weighted-average grant date fair value (usd per share) | $ / shares | $ 44.65 |
Performance Contingent Restricted Stock Units | Nonvested | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning Balance (in shares) | 329,532 |
Granted (in shares) | 115,412 |
Performance adjustments (in shares) | (42,866) |
Vested (in shares) | 84,522 |
Converted (in shares) | 0 |
Cancelled (in shares) | (18,720) |
Dividend equivalents (in shares) | 0 |
Ending Balance (in shares) | 298,836 |
Performance Contingent Restricted Stock Units | Vested | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning Balance (in shares) | 322,287 |
Granted (in shares) | 0 |
Performance adjustments (in shares) | 0 |
Vested (in shares) | 84,522 |
Converted (in shares) | (177,902) |
Cancelled (in shares) | 0 |
Dividend equivalents (in shares) | 4,190 |
Ending Balance (in shares) | 233,097 |
Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning Balance (in shares) | 309,795 |
Granted (in shares) | 69,686 |
Vested (in shares) | 0 |
Converted (in shares) | (114,981) |
Cancelled (in shares) | (18,701) |
Dividend equivalents (in shares) | 5,486 |
Ending Balance (in shares) | 251,285 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance, weighted-average grant date fair value (usd per share) | $ / shares | $ 38.41 |
Granted, weighted-average grant date fair value (usd per share) | $ / shares | 57.76 |
Converted, weighted-average grant date fair value (usd per share) | $ / shares | 40 |
Cancelled, weighted-average grant date fair value (usd per share) | $ / shares | 50.69 |
Dividend equivalents, weighted-average grant date fair value (usd per share) | $ / shares | 60.71 |
Ending Balance, weighted-average grant date fair value (usd per share) | $ / shares | $ 46.14 |
Restricted Stock Awards | Nonvested | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning Balance (in shares) | 158,381 |
Granted (in shares) | 69,686 |
Vested (in shares) | 54,352 |
Converted (in shares) | 0 |
Cancelled (in shares) | (18,701) |
Dividend equivalents (in shares) | 1,563 |
Ending Balance (in shares) | 156,577 |
Restricted Stock Awards | Vested | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning Balance (in shares) | 151,414 |
Granted (in shares) | 0 |
Vested (in shares) | 54,352 |
Converted (in shares) | (114,981) |
Cancelled (in shares) | 0 |
Dividend equivalents (in shares) | 3,923 |
Ending Balance (in shares) | 94,708 |
Deferred Compensation Plans | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning Balance (in shares) | 390,354 |
Deferred (in shares) | 46,065 |
Converted (in shares) | (80,288) |
Dividend equivalents (in shares) | 11,016 |
Ending Balance (in shares) | 367,147 |
Employee benefit plans - Compon
Employee benefit plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 3,968 | $ 18,652 | $ 18,543 |
Interest cost | 57,348 | 54,970 | 55,873 |
Expected return on plan assets | (65,143) | (91,021) | (81,212) |
Amortization of prior service cost / (credit) | 1,022 | 916 | 910 |
Amortization of net actuarial gain (loss) | 30,681 | 37,391 | 39,209 |
Effect of settlement loss | 2,377 | 730 | 32,761 |
Other | 0 | 256 | 0 |
Net periodic benefit cost (income) | 30,253 | 21,894 | 66,084 |
Retiree Health and Life Insurance Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 308 | 297 | 313 |
Interest cost | 467 | 452 | 463 |
Expected return on plan assets | (718) | (1,135) | (1,636) |
Amortization of prior service cost / (credit) | (498) | (498) | (499) |
Amortization of net actuarial gain (loss) | (823) | (1,120) | (759) |
Net periodic benefit cost (income) | $ (1,264) | $ (2,004) | $ (2,118) |
Employee benefit plans - Plans'
Employee benefit plans - Plans' Obligation and Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Plan Assets | |||
Fair value of plan assets at January 1 | $ 1,329,751 | ||
Fair value of plan assets at December 31 | 1,696,401 | $ 1,329,751 | |
Retirement Plan | |||
Change in Benefit Obligation | |||
Benefit obligation at January 1 | 1,684,277 | 1,837,938 | |
Service cost | 3,968 | 18,652 | $ 18,543 |
Interest cost | 57,348 | 54,970 | 55,873 |
Plan participant contributions | 224 | 429 | |
Plan amendments | 1,343 | 155 | |
Actuarial loss/(gain) | 316,547 | (115,153) | |
Benefits paid | (92,636) | (93,053) | |
Impact of foreign exchange rates | 11,952 | (21,636) | |
Effect of settlements | (8,101) | (2,210) | |
Other | 0 | (253) | |
Acquisitions | 1,275 | 4,438 | |
Benefit obligation at December 31 | 1,976,197 | 1,684,277 | 1,837,938 |
Change in Plan Assets | |||
Fair value of plan assets at January 1 | 1,318,832 | 1,494,713 | |
Actual return on plan assets | 242,823 | (78,447) | |
Company contributions | 215,979 | 24,524 | |
Plan participant contributions | 224 | 429 | |
Benefits paid | (92,636) | (93,053) | |
Impact of foreign exchange rates | 12,869 | (22,380) | |
Effect of settlements | (8,101) | (2,210) | |
Expenses paid | (7,084) | (6,670) | |
Acquisitions | 614 | 1,926 | |
Fair value of plan assets at December 31 | 1,683,520 | 1,318,832 | 1,494,713 |
Funded Status of the Plans | (292,677) | (365,445) | |
Retiree Health and Life Insurance Plans | |||
Change in Benefit Obligation | |||
Benefit obligation at January 1 | 14,048 | 15,691 | |
Service cost | 308 | 297 | 313 |
Interest cost | 467 | 452 | 463 |
Plan participant contributions | 680 | 620 | |
Plan amendments | 0 | 0 | |
Actuarial loss/(gain) | 589 | (398) | |
Benefits paid | (1,621) | (2,569) | |
Impact of foreign exchange rates | 24 | (45) | |
Effect of settlements | 0 | 0 | |
Other | 0 | 0 | |
Acquisitions | 0 | 0 | |
Benefit obligation at December 31 | 14,495 | 14,048 | 15,691 |
Change in Plan Assets | |||
Fair value of plan assets at January 1 | 10,919 | 27,177 | |
Actual return on plan assets | 2,327 | (915) | |
Company contributions | 682 | (13,302) | |
Plan participant contributions | 680 | 620 | |
Benefits paid | (1,621) | (2,569) | |
Impact of foreign exchange rates | 0 | 0 | |
Effect of settlements | 0 | 0 | |
Expenses paid | (106) | (92) | |
Acquisitions | 0 | 0 | |
Fair value of plan assets at December 31 | 12,881 | 10,919 | $ 27,177 |
Funded Status of the Plans | $ (1,614) | $ (3,129) |
Employee benefit plans - Recogn
Employee benefit plans - Recognized Amounts in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total Recognized Amounts in the Consolidated Balance Sheets | ||
Noncurrent liabilities | $ (304,798) | $ (374,419) |
Retirement Plan | ||
Total Recognized Amounts in the Consolidated Balance Sheets | ||
Noncurrent assets | 24,196 | 18,520 |
Current liabilities | (13,913) | (12,935) |
Noncurrent liabilities | (302,960) | (371,030) |
Net (liability)/asset | (292,677) | (365,445) |
Retiree Health and Life Insurance Plans | ||
Total Recognized Amounts in the Consolidated Balance Sheets | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (784) | (983) |
Noncurrent liabilities | (830) | (2,146) |
Net (liability)/asset | $ (1,614) | $ (3,129) |
Employee benefit plans - Comp_2
Employee benefit plans - Component of Net Periodic Pension Cost that are Included in Accumulated Other Comprehensive Loss (Income) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss/(gain) | $ 759,610 | $ 646,254 |
Prior service cost/(credit) | 6,159 | 5,514 |
Amount in accumulated other comprehensive loss (income) | 765,769 | 651,768 |
Retiree Health and Life Insurance Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss/(gain) | (7,055) | (6,964) |
Prior service cost/(credit) | (279) | (777) |
Amount in accumulated other comprehensive loss (income) | $ (7,334) | $ (7,741) |
Employee benefit plans - Amount
Employee benefit plans - Amounts Recognized in Other Comprehensive Loss/(Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Plan | |||
Adjustments arising during the period: | |||
Net actuarial loss/(gain) | $ 146,414 | $ 58,544 | $ (10,732) |
Prior service cost/(credit) | 1,667 | 2,906 | 639 |
Net settlements/curtailments | (2,377) | (986) | (32,761) |
Reversal of amortization: | |||
Net actuarial (loss)/gain | (30,681) | (37,391) | (39,209) |
Prior service (cost)/credit | (1,022) | (916) | (910) |
Total recognized in other comprehensive loss/(income) | 114,001 | 22,157 | (82,973) |
Total recognized in net periodic benefit cost and other comprehensive loss/(income) | 144,254 | 44,051 | (16,889) |
Retiree Health and Life Insurance Plans | |||
Adjustments arising during the period: | |||
Net actuarial loss/(gain) | (914) | 1,738 | (3,525) |
Prior service cost/(credit) | 0 | 0 | 0 |
Net settlements/curtailments | 0 | 0 | 0 |
Reversal of amortization: | |||
Net actuarial (loss)/gain | 823 | 1,120 | 759 |
Prior service (cost)/credit | 498 | 498 | 499 |
Total recognized in other comprehensive loss/(income) | 407 | 3,356 | (2,267) |
Total recognized in net periodic benefit cost and other comprehensive loss/(income) | $ (857) | $ 1,352 | $ (4,385) |
Employee benefit plans - Accumu
Employee benefit plans - Accumulated Other Comprehensive Loss/(Income) Expects to Recognize as Components of Net Periodic Benefit Cost (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Retirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss/(gain) | $ 22,486 |
Prior service cost/(credit) | 1,037 |
Expected amortization of defined benefit plan amounts from AOCI in next fiscal year | 23,523 |
Retiree Health and Life Insurance Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss/(gain) | (808) |
Prior service cost/(credit) | (279) |
Expected amortization of defined benefit plan amounts from AOCI in next fiscal year | $ (1,087) |
Employee benefit plans - Additi
Employee benefit plans - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | 120 Months Ended | ||
Feb. 28, 2017 | Dec. 31, 2019USD ($)participantyear | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($)participant | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plans, accumulated benefit obligation | $ 1,959,010 | $ 1,668,396 | $ 1,959,010 | ||
Projected benefit obligation (PBO) with accumulated benefit obligations in excess of plan assets | 1,658,018 | 1,397,040 | 1,658,018 | ||
Accumulated benefit obligation (ABO) with accumulated benefit obligations in excess of plan assets | 1,651,740 | 1,391,129 | 1,651,740 | ||
Fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets | $ 1,341,556 | 1,013,173 | 1,341,556 | ||
Percentage of retiree health liability | 96.00% | ||||
Projected contributions to retirement plan | $ 25,000 | 25,000 | |||
Total postretirement benefit plan assets | $ 1,696,401 | 1,329,751 | $ 1,696,401 | ||
Sonoco Savings Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan contribution percentage, Minimum | 1.00% | ||||
Defined contribution plan contribution percentage, Maximum | 100.00% | ||||
Percentage of participants modified matching contribution to be matched towards safe Harbor under companies savings plan | 50.00% | ||||
Modify matching employee contribution to profit sharing under companies savings plan | 4.00% | ||||
Companies expense related to the plan | $ 13,400 | 12,500 | $ 11,200 | ||
Sonoco Investment and Retirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected contributions to retirement plan | 23,000 | $ 23,000 | |||
Companies expense related to the plan | $ 23,752 | 14,995 | 14,540 | ||
Contribution rate of annual eligible earnings under companies investment and retirement plan | 4.00% | ||||
Contribution rate of annual eligible earnings in excess of social security wage base under companies investment and retirement plan | 4.00% | ||||
Vesting period | 3 years | ||||
Age limit of participants (year) | year | 55 | ||||
Cash contributions to the SIRP | $ 14,573 | 14,151 | 14,066 | ||
Retiree Health and Life Insurance Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Cash withdrawn from a collectively bargained VEBA | 14,025 | ||||
Total postretirement benefit plan assets | 12,881 | 10,919 | 27,177 | 12,881 | |
Company contributions | 682 | (13,302) | |||
Retirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total postretirement benefit plan assets | 1,683,520 | 1,318,832 | 1,494,713 | 1,683,520 | |
Company contributions | 215,979 | 24,524 | |||
Retirement Plan | Inactive Plan Investment Portfolio | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected contributions to retirement plan | 150,000 | 150,000 | |||
Expected settlement charge | $ 600,000 | $ 600,000 | |||
Number of participants | participant | 11,000 | 11,000 | |||
Retirement Plan | Active Plan Investment Portfolio | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of participants | participant | 600 | 600 | |||
United States | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Effect of one percentage point increase on postretirement benefit obligation | $ 124 | ||||
Effect of one percentage point increase of health care cost trend rate on total of service and interest cost | 12 | ||||
Effect of one percentage point decrease on postretirement benefit obligation | 115 | ||||
Effect of one percentage point decrease of health care cost trend rate on total of service and interest cost | 11 | ||||
United States | Retiree Health and Life Insurance Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total postretirement benefit plan assets | 1,322,822 | $ 1,322,822 | |||
United States | Retirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Non-cash settlement charges | $ 32,761 | ||||
Terminated vested participants, percentage | 15.00% | ||||
Election rates, percentage | 47.00% | ||||
Company contributions | $ 200,000 | ||||
United States | Retirement Plan | Debt securities | Inactive Plan Investment Portfolio | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current target allocation for investment portfolio | 97.00% | 97.00% | |||
United States | Retirement Plan | Debt securities | Active Plan Investment Portfolio | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current target allocation for investment portfolio | 97.00% | 97.00% | |||
United States | Retirement Plan | Cash and short-term investments | Inactive Plan Investment Portfolio | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current target allocation for investment portfolio | 3.00% | 3.00% | |||
United States | Retirement Plan | Cash and short-term investments | Active Plan Investment Portfolio | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current target allocation for investment portfolio | 3.00% | 3.00% | |||
U.K. | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current target allocation for investment portfolio | 42.00% | 42.00% | |||
U.K. | Debt securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current target allocation for investment portfolio | 58.00% | 58.00% | |||
Canada | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current target allocation for investment portfolio | 55.00% | 55.00% | |||
Canada | Debt securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current target allocation for investment portfolio | 44.00% | 44.00% | |||
Canada | Cash and short-term investments | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current target allocation for investment portfolio | 1.00% | 1.00% | |||
Canada | Retirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Non-cash settlement charges | $ 2,377 | $ 730 |
Employee benefit plans - Compan
Employee benefit plans - Company's Projected Benefit Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Retirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 96,448 |
2021 | 93,436 |
2022 | 94,786 |
2023 | 95,830 |
2024 | 97,372 |
2025-2029 | 508,354 |
Retiree Health and Life Insurance Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 1,344 |
2021 | 1,305 |
2022 | 1,269 |
2023 | 1,230 |
2024 | 1,173 |
2025-2029 | $ 5,344 |
Employee benefit plans - Major
Employee benefit plans - Major Actuarial Assumptions Used in Determining PBO, ABO and Net Periodic Cost (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States | Retirement Plan | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount Rate | 2.87% | 4.24% | |
Rate of Compensation Increase | 0.00% | 0.00% | |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount Rate | 4.24% | 3.59% | 4.12% |
Expected Long-term Rate of Return | 6.63% | 6.87% | 6.86% |
Rate of Compensation Increase | 0.00% | 3.40% | 3.60% |
United States | Retiree Health and Life Insurance Plans | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount Rate | 2.89% | 4.02% | |
Rate of Compensation Increase | 3.04% | 3.06% | |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount Rate | 4.02% | 3.36% | 3.70% |
Expected Long-term Rate of Return | 6.73% | 6.95% | 6.98% |
Rate of Compensation Increase | 3.06% | 3.28% | 3.32% |
Foreign plans | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount Rate | 2.28% | 3.11% | |
Rate of Compensation Increase | 3.37% | 3.65% | |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount Rate | 3.11% | 2.78% | 2.95% |
Expected Long-term Rate of Return | 4.62% | 4.84% | 4.52% |
Rate of Compensation Increase | 3.65% | 3.62% | 3.65% |
Employee benefit plans - Health
Employee benefit plans - Health Care Cost Trend Rates Related to U.S. Plan (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Pre-age 65 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Healthcare Cost Trend Rate | 6.25% | 6.50% |
Ultimate Trend Rate | 4.50% | 4.50% |
Post-age 65 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Healthcare Cost Trend Rate | 6.25% | 6.50% |
Ultimate Trend Rate | 4.50% | 4.50% |
Employee benefit plans - Weight
Employee benefit plans - Weighted-Average Asset Allocations (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 100.00% | 100.00% |
Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 100.00% | 100.00% |
U.K. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 100.00% | 100.00% |
Retirement Plan | United States | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 0.00% | 48.30% |
Retirement Plan | United States | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 91.60% | 38.40% |
Retirement Plan | United States | Alternative | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 5.70% | 13.30% |
Retirement Plan | United States | Cash and short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 2.70% | 0.00% |
Retirement Plan | Canada | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 67.90% | 55.40% |
Retirement Plan | Canada | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 31.60% | 44.00% |
Retirement Plan | Canada | Alternative | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 0.00% | 0.00% |
Retirement Plan | Canada | Cash and short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 0.50% | 0.60% |
Retirement Plan | U.K. | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 42.10% | 38.90% |
Retirement Plan | U.K. | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 57.30% | 60.50% |
Retirement Plan | U.K. | Alternative | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 0.00% | 0.00% |
Retirement Plan | U.K. | Cash and short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 0.60% | 0.60% |
Retiree Health and Life Insurance Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 100.00% | 100.00% |
Retiree Health and Life Insurance Plans | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 0.00% | 48.30% |
Retiree Health and Life Insurance Plans | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 91.60% | 38.40% |
Retiree Health and Life Insurance Plans | Alternative | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 5.70% | 13.30% |
Retiree Health and Life Insurance Plans | Cash and short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total (percent) | 2.70% | 0.00% |
Income taxes - Provision for Ta
Income taxes - Provision for Taxes on Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pretax income | |||
Domestic | $ 217,098 | $ 225,442 | $ 168,180 |
Foreign | 163,668 | 153,089 | 146,374 |
Income before income taxes | 380,766 | 378,531 | 314,554 |
Current | |||
Federal | 14,933 | 37,345 | 120,398 |
State | 2,565 | 6,164 | 5,623 |
Foreign | 45,911 | 38,648 | 40,328 |
Total current | 63,409 | 82,157 | 166,349 |
Deferred | |||
Federal | 25,064 | (5,571) | (16,797) |
State | 8,599 | (738) | 3,499 |
Foreign | (3,803) | (840) | (6,462) |
Total deferred | 29,860 | (7,149) | (19,760) |
Total taxes | $ 93,269 | $ 75,008 | $ 146,589 |
Income taxes - Deferred Tax Ass
Income taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Property, plant and equipment | $ (91,207) | $ (102,007) |
Intangibles | (134,868) | (178,883) |
Leases | (79,332) | |
Gross deferred tax liabilities | (305,407) | (280,890) |
Retiree health benefits | 2,405 | 2,989 |
Foreign loss carryforwards | 58,527 | 57,581 |
U.S. Federal loss and credit carryforwards | 86,748 | 86,655 |
Capital loss carryforwards | 2,703 | 2,757 |
Employee benefits | 87,295 | 114,872 |
Leases | 79,673 | |
Accrued liabilities and other | 63,700 | 102,349 |
Gross deferred tax assets | 381,051 | 367,203 |
Valuation allowance on deferred tax assets | (105,347) | (103,289) |
Total deferred taxes, net | $ (29,703) | $ (16,976) |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) $ in Thousands | Nov. 20, 2017USD ($) | Nov. 14, 2017notice | Oct. 05, 2017notice | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Income Taxes [Line Items] | ||||||||
Loss carryforwards | $ 70,400 | |||||||
Loss carryforwards not subject to expiration | 212,400 | |||||||
Tax Act, provisional amount related to transition tax | $ 80,580 | |||||||
Tax Act, transition tax payable, non-current | $ 46,295 | |||||||
Increase (decrease) in reserve for uncertain tax positions | (1,639) | (3,076) | $ 4,895 | |||||
Tax Act, benefits included in valuation allowance | 16,100 | |||||||
Tax credits | 13,310 | 10,083 | 1,197 | |||||
Tax credit offsetting GILTI tax | 10,484 | |||||||
Global intangible low-taxed income (GILTI) | (12,340) | (12,878) | 0 | |||||
Net GILTI tax | 1,856 | |||||||
Undistributed earnings | 916,457 | |||||||
Unrecognized tax benefits | 11,400 | 13,500 | ||||||
Accrued for interest | 2,000 | 2,100 | ||||||
Interest benefit | 600 | |||||||
Interest benefit | 900 | |||||||
Interest expense | 1,500 | |||||||
Settlements | 700 | |||||||
Reserve for uncertain tax benefits | 900 | |||||||
Number of NOPAs received | notice | 2 | 2 | ||||||
2018 Tax year | ||||||||
Income Taxes [Line Items] | ||||||||
Estimate of net GILTI tax due | 2,097 | |||||||
U.S. Federal | ||||||||
Income Taxes [Line Items] | ||||||||
Loss carryforwards | 77,200 | |||||||
U.S. Federal | Plastic Packaging Inc. | ||||||||
Income Taxes [Line Items] | ||||||||
Loss carryforwards | 15,800 | |||||||
Foreign | ||||||||
Income Taxes [Line Items] | ||||||||
Loss carryforwards | 238,600 | |||||||
Foreign | Next five years | ||||||||
Income Taxes [Line Items] | ||||||||
Operating loss carryforwards subject to expiration | 9,200 | |||||||
Foreign | 2025 to 2039 | ||||||||
Income Taxes [Line Items] | ||||||||
Operating loss carryforwards subject to expiration | 17,000 | |||||||
State | ||||||||
Income Taxes [Line Items] | ||||||||
Loss carryforwards | 12,300 | |||||||
State credit carry forwards | 17,600 | |||||||
Uncertain Items Arising During Year | ||||||||
Income Taxes [Line Items] | ||||||||
Increase (decrease) in reserve for uncertain tax positions | 1,800 | 1,700 | 2,600 | |||||
Uncertain Items Arising During Prior Years | ||||||||
Income Taxes [Line Items] | ||||||||
Increase (decrease) in reserve for uncertain tax positions | $ (3,500) | $ (2,900) | $ (2,300) | |||||
Internal Revenue Service (IRS) | ||||||||
Income Taxes [Line Items] | ||||||||
Income tax examination, estimate of possible loss, penalties | $ 18,000 | |||||||
Income tax examination, estimate of possible loss | $ 89,000 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of U.S. Federal Statutory Tax Rate to Actual Consolidated Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory tax rate | $ 79,961 | $ 79,491 | $ 110,094 |
State income taxes, net of federal tax benefit | 7,767 | 7,534 | 4,780 |
Valuation allowance | 3,174 | (14,902) | (3,333) |
Tax examinations including change in reserve for uncertain tax positions | (1,639) | (3,076) | 4,895 |
Adjustments to prior year deferred taxes | (499) | (1,899) | (1,415) |
Foreign earnings taxed at other than U.S. rates | 5,083 | 8,224 | (16,233) |
Disposition of business | 0 | 0 | 537 |
Effect of tax rate changes enacted during the year | 531 | (6,218) | (22,183) |
Deduction related to qualified production activities | 0 | 341 | (5,384) |
Transition tax | 0 | 3,647 | 76,933 |
Tax credits | (13,310) | (10,083) | (1,197) |
Global intangible low-taxed income (GILTI) | 12,340 | 12,878 | 0 |
Foreign-derived intangible income | (1,225) | (1,174) | 0 |
Other, net | 1,086 | 245 | (905) |
Total taxes | $ 93,269 | $ 75,008 | $ 146,589 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory tax rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal tax benefit | 2.00% | 2.00% | 1.50% |
Valuation allowance | 0.80% | (3.90%) | (1.10%) |
Tax examinations including change in reserve for uncertain tax positions | (0.40%) | (0.80%) | 1.60% |
Adjustments to prior year deferred taxes | (0.10%) | (0.50%) | (0.40%) |
Foreign earnings taxed at other than U.S. rates | 1.30% | 2.20% | (5.20%) |
Disposition of business | 0.00% | 0.00% | 0.20% |
Effect of tax rate changes enacted during the year | 0.10% | (1.60%) | (7.10%) |
Deduction related to qualified production activities | 0.00% | 0.10% | (1.70%) |
Transition tax | 0.00% | 1.00% | 24.50% |
Tax credit | (3.50%) | (2.70%) | (0.40%) |
Global intangible low-tax income (GILTI) | 3.20% | 3.40% | 0.00% |
Foreign-derivative intangible income | (0.30%) | (0.30%) | 0.00% |
Other, net | 0.30% | 0.10% | (0.30%) |
Total taxes | 24.50% | 19.80% | 46.60% |
Income taxes - Reconciliation_2
Income taxes - Reconciliation of Gross Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits, Beginning Balance | $ 14,400 | $ 17,100 | $ 17,700 |
Increases in prior years’ unrecognized tax benefits | 0 | 0 | 700 |
Decreases in prior years’ unrecognized tax benefits | (1,300) | (700) | (2,400) |
Increases in current year's unrecognized tax benefits | 1,300 | 1,200 | 1,600 |
Decreases in unrecognized tax benefits from the lapse of statutes of limitations | (2,300) | (2,600) | (300) |
Settlements | 100 | ||
Settlements | (600) | (200) | |
Gross unrecognized tax benefits, Ending Balance | $ 12,200 | $ 14,400 | $ 17,100 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Contract asset | $ 56,364 | $ 48,786 |
Contract liability | $ (18,533) |
Revenue Recognition - Significa
Revenue Recognition - Significant Changes in Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Beginning balance | $ 48,786 | $ 45,877 |
Increases due to rights to consideration for customer specific goods produced, but not billed during the period | 51,797 | 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 estimate of completion, excluding amounts transferred to receivables during period | 0 | |
Contract asset acquired in a business combination | 4,567 | 0 |
Ending balance | 56,364 | 48,786 |
Change in Contract with Customer, Liability [Abstract] | ||
Beginning balance | (18,533) | (17,736) |
Revenue deferred of rebates accrued | (29,062) | (19,730) |
Recognized as revenue | 8,473 | 1,652 |
Rebates paid to customers | 22,075 | 17,281 |
Increase as a result of cumulative catch-up arising from changes in estimate of completion, excluding amounts transferred to receivables during period | 0 | |
Ending balance | $ (17,047) | $ (18,533) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,308,850 | $ 1,353,931 | $ 1,359,721 | $ 1,351,705 | $ 1,355,616 | $ 1,364,762 | $ 1,366,373 | $ 1,304,187 | $ 5,374,207 | $ 5,390,938 | $ 5,036,650 |
Consumer Packaging | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,333,386 | 2,359,999 | |||||||||
Display and Packaging | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 554,125 | 592,309 | |||||||||
Paper and Industrial Converted Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,974,739 | 1,910,953 | |||||||||
Protective Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 511,957 | 527,677 | |||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 3,408,459 | 3,490,369 | 3,263,975 | ||||||||
United States | Consumer Packaging | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,659,071 | 1,676,204 | |||||||||
United States | Display and Packaging | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 246,735 | 290,295 | |||||||||
United States | Paper and Industrial Converted Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,095,437 | 1,108,735 | |||||||||
United States | Protective Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 407,216 | 415,135 | |||||||||
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,078,766 | 1,092,654 | 981,178 | ||||||||
Europe | Consumer Packaging | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 407,759 | 418,129 | |||||||||
Europe | Display and Packaging | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 301,866 | 294,156 | |||||||||
Europe | Paper and Industrial Converted Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 346,102 | 354,705 | |||||||||
Europe | Protective Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 23,039 | 25,664 | |||||||||
Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 226,049 | 246,208 | $ 245,992 | ||||||||
Canada | Consumer Packaging | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 108,848 | 115,183 | |||||||||
Canada | Display and Packaging | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | |||||||||
Canada | Paper and Industrial Converted Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 117,201 | 131,025 | |||||||||
Canada | Protective Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | |||||||||
Asia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 350,259 | 251,299 | |||||||||
Asia | Consumer Packaging | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 70,504 | 69,242 | |||||||||
Asia | Display and Packaging | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | |||||||||
Asia | Paper and Industrial Converted Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 277,385 | 178,509 | |||||||||
Asia | Protective Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,370 | 3,548 | |||||||||
All other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 310,674 | 310,408 | |||||||||
All other | Consumer Packaging | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 87,204 | 81,241 | |||||||||
All other | Display and Packaging | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 5,524 | 7,858 | |||||||||
All other | Paper and Industrial Converted Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 138,614 | 137,979 | |||||||||
All other | Protective Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 79,332 | $ 83,330 |
Commitments and contingencies -
Commitments and contingencies - Additional Information (Details) - USD ($) $ in Thousands | Nov. 20, 2017 | Sep. 29, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2011 |
Site Contingency [Line Items] | |||||
Environmental accrual | $ 8,727 | $ 20,100 | |||
Total future payments | 99,323 | ||||
Payments in 2020 | 39,707 | ||||
Payments in 2021 | 20,960 | ||||
Payments in 2022 | 23,134 | ||||
Payments in 2023 | 9,325 | ||||
Payments in 2024 - 2028 | 6,197 | ||||
Internal Revenue Service (IRS) | |||||
Site Contingency [Line Items] | |||||
Income tax examination, estimate of possible loss | $ 89,000 | ||||
Multiple sites | |||||
Site Contingency [Line Items] | |||||
Environmental accrual | 2,938 | 4,136 | |||
Tegrant Holding Corporation | |||||
Site Contingency [Line Items] | |||||
Environmental accrual | 5,789 | $ 15,964 | $ 17,400 | ||
Payment for remediation | 1,611 | ||||
Expense (reversal of expense) due to revision of estimates | $ (10,000) | $ (10,000) |
Shareholders_ equity and earn_3
Shareholders’ equity and earnings per share - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2018 | Oct. 01, 2018 | Dec. 31, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Oct. 01, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 30, 2018 | Feb. 10, 2016 |
Equity [Line Items] | |||||||||||||||||
Cost of shares repurchased | $ 9,608 | $ 14,561 | $ 6,335 | ||||||||||||||
Cash dividends per common share (usd per share) | $ 0.43 | $ 0.43 | $ 0.43 | $ 0.41 | $ 0.41 | $ 0.41 | $ 0.41 | $ 0.39 | $ 1.70 | $ 1.62 | $ 1.54 | ||||||
Writeoff of book value | $ 35,000 | ||||||||||||||||
Noncontrolling interest, increase from business combination | $ 2,870 | ||||||||||||||||
Joint Venture for Asia Markets Operation | |||||||||||||||||
Equity [Line Items] | |||||||||||||||||
Payments to acquire interest in joint venture | $ 35,000 | ||||||||||||||||
Writeoff of book value | 11,695 | ||||||||||||||||
Reduction in capital in excess of stated value | $ 23,305 | ||||||||||||||||
Conitex Sonoco Holding BVI Ltd. | |||||||||||||||||
Equity [Line Items] | |||||||||||||||||
Noncontrolling interest, increase from business combination | $ 2,655 | ||||||||||||||||
Tax Withholding Obligations | |||||||||||||||||
Equity [Line Items] | |||||||||||||||||
Number of shares repurchased (in shares) | 169,290 | 266,652 | 119,349 | ||||||||||||||
Cost of shares repurchased | $ 9,608 | $ 14,561 | $ 6,335 | ||||||||||||||
Non- controlling Interests | |||||||||||||||||
Equity [Line Items] | |||||||||||||||||
Writeoff of book value | 11,695 | ||||||||||||||||
Noncontrolling interest, increase from business combination | $ 1,341 | $ 2,870 | |||||||||||||||
February 2016 Share Repurchase Authorization | |||||||||||||||||
Equity [Line Items] | |||||||||||||||||
Number of shares repurchased (in shares) | 0 | 0 | 2,030,389 | ||||||||||||||
Cost of shares repurchased | $ 100,000 | ||||||||||||||||
Number of shares authorized for repurchase (in shares) | 5,000,000 | ||||||||||||||||
Number of shares to be repurchased under authorization plan (in shares) | 2,969,611 | 2,969,611 | |||||||||||||||
Asian Joint Venture | Joint Venture for Asia Markets Operation | |||||||||||||||||
Equity [Line Items] | |||||||||||||||||
Owned subsidiary, percentage | 98.33% | 98.33% | 98.33% | 79.25% | |||||||||||||
PFE Hong Kong Limited | Joint Venture for Asia Markets Operation | |||||||||||||||||
Equity [Line Items] | |||||||||||||||||
Percentage of ownership of Graffo | 19.08% | 19.08% | 19.08% | ||||||||||||||
Conitex Sonoco | Conitex Sonoco Holding BVI Ltd. | |||||||||||||||||
Equity [Line Items] | |||||||||||||||||
Owned subsidiary, percentage | 70.00% | ||||||||||||||||
Saudi Arabia Joint Venture | |||||||||||||||||
Equity [Line Items] | |||||||||||||||||
Owned subsidiary, percentage | 51.00% | 51.00% |
Shareholders_ equity and earn_4
Shareholders’ equity and earnings per share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net income attributable to Sonoco | $ 44,899 | $ 92,064 | $ 81,159 | $ 73,663 | $ 77,678 | $ 72,415 | $ 89,412 | $ 74,055 | $ 291,785 | $ 313,560 | $ 175,345 |
Denominator: | |||||||||||
Weighted average common shares outstanding (in shares) | 100,742 | 100,539 | 100,237 | ||||||||
Dilutive effect of stock-based compensation (in shares) | 434 | 477 | 615 | ||||||||
Diluted (in shares) | 101,176 | 101,016 | 100,852 | ||||||||
Net income attributable to Sonoco: | |||||||||||
Basic (usd per share) | $ 0.45 | $ 0.91 | $ 0.81 | $ 0.73 | $ 0.78 | $ 0.72 | $ 0.89 | $ 0.74 | $ 2.90 | $ 3.12 | $ 1.75 |
Diluted (usd per share) | $ 0.44 | $ 0.91 | $ 0.80 | $ 0.73 | $ 0.77 | $ 0.72 | $ 0.88 | $ 0.73 | $ 2.88 | $ 3.10 | $ 1.74 |
Shareholders_ equity and earn_5
Shareholders’ equity and earnings per share - Shares Not Included in Computations of Diluted Income Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Anti-dilutive stock appreciation rights (in shares) | 475 | 786 | 487 |
Segment reporting - Additional
Segment reporting - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (segment) | 4 |
Segment reporting - Financial S
Segment reporting - Financial Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total Revenue | |||||||||||
Total Revenue | $ 5,522,703 | $ 5,531,203 | $ 5,188,107 | ||||||||
Net sales | $ 1,308,850 | $ 1,353,931 | $ 1,359,721 | $ 1,351,705 | $ 1,355,616 | $ 1,364,762 | $ 1,366,373 | $ 1,304,187 | 5,374,207 | 5,390,938 | 5,036,650 |
Income Before Income Taxes | |||||||||||
Income Before Income Taxes | 380,766 | 378,531 | 314,554 | ||||||||
Identifiable Assets | |||||||||||
Identifiable Assets | 5,126,289 | 4,583,465 | 5,126,289 | 4,583,465 | 4,557,721 | ||||||
Depreciation, Depletion and Amortization | |||||||||||
Depreciation, Depletion and Amortization | 239,140 | 236,245 | 217,625 | ||||||||
Capital Expenditures | |||||||||||
Capital Expenditures | 195,934 | 192,574 | 188,913 | ||||||||
Consumer Packaging | |||||||||||
Total Revenue | |||||||||||
Net sales | 2,333,386 | 2,359,999 | |||||||||
Display and Packaging | |||||||||||
Total Revenue | |||||||||||
Net sales | 554,125 | 592,309 | |||||||||
Operating segments | Consumer Packaging | |||||||||||
Total Revenue | |||||||||||
Total Revenue | 2,338,881 | 2,363,292 | 2,129,022 | ||||||||
Net sales | 2,333,386 | 2,359,999 | 2,123,465 | ||||||||
Income Before Income Taxes | |||||||||||
Income Before Income Taxes | 228,416 | 224,505 | 255,759 | ||||||||
Identifiable Assets | |||||||||||
Identifiable Assets | 2,239,674 | 1,993,417 | 2,239,674 | 1,993,417 | 1,890,516 | ||||||
Depreciation, Depletion and Amortization | |||||||||||
Depreciation, Depletion and Amortization | 111,919 | 116,841 | 98,882 | ||||||||
Capital Expenditures | |||||||||||
Capital Expenditures | 64,590 | 66,659 | 63,617 | ||||||||
Operating segments | Display and Packaging | |||||||||||
Total Revenue | |||||||||||
Total Revenue | 558,747 | 595,855 | 511,099 | ||||||||
Net sales | 554,125 | 592,309 | 508,236 | ||||||||
Income Before Income Taxes | |||||||||||
Income Before Income Taxes | 27,723 | 13,291 | 2,632 | ||||||||
Identifiable Assets | |||||||||||
Identifiable Assets | 452,155 | 440,972 | 452,155 | 440,972 | 480,892 | ||||||
Depreciation, Depletion and Amortization | |||||||||||
Depreciation, Depletion and Amortization | 14,926 | 18,020 | 17,090 | ||||||||
Capital Expenditures | |||||||||||
Capital Expenditures | 5,065 | 19,849 | 23,908 | ||||||||
Operating segments | Paper and Industrial Converted Products | |||||||||||
Total Revenue | |||||||||||
Total Revenue | 2,111,491 | 2,042,732 | 2,007,321 | ||||||||
Net sales | 1,974,739 | 1,910,953 | 1,866,180 | ||||||||
Income Before Income Taxes | |||||||||||
Income Before Income Taxes | 219,052 | 211,122 | 161,591 | ||||||||
Identifiable Assets | |||||||||||
Identifiable Assets | 1,701,902 | 1,472,148 | 1,701,902 | 1,472,148 | 1,346,391 | ||||||
Depreciation, Depletion and Amortization | |||||||||||
Depreciation, Depletion and Amortization | 85,619 | 74,434 | 74,850 | ||||||||
Capital Expenditures | |||||||||||
Capital Expenditures | 112,308 | 91,423 | 61,443 | ||||||||
Operating segments | Protective Solutions | |||||||||||
Total Revenue | |||||||||||
Total Revenue | 513,584 | 529,324 | 540,665 | ||||||||
Net sales | 511,957 | 527,677 | 538,769 | ||||||||
Income Before Income Taxes | |||||||||||
Income Before Income Taxes | 50,201 | 42,902 | 42,357 | ||||||||
Identifiable Assets | |||||||||||
Identifiable Assets | 580,411 | 535,443 | 580,411 | 535,443 | 552,425 | ||||||
Depreciation, Depletion and Amortization | |||||||||||
Depreciation, Depletion and Amortization | 26,676 | 26,950 | 26,803 | ||||||||
Capital Expenditures | |||||||||||
Capital Expenditures | 6,880 | 5,879 | 19,031 | ||||||||
Eliminations | |||||||||||
Total Revenue | |||||||||||
Total Revenue | 148,496 | 140,265 | 151,457 | ||||||||
Eliminations | Consumer Packaging | |||||||||||
Total Revenue | |||||||||||
Total Revenue | 5,495 | 3,293 | 5,557 | ||||||||
Eliminations | Display and Packaging | |||||||||||
Total Revenue | |||||||||||
Total Revenue | 4,622 | 3,546 | 2,863 | ||||||||
Eliminations | Paper and Industrial Converted Products | |||||||||||
Total Revenue | |||||||||||
Total Revenue | 136,752 | 131,779 | 141,141 | ||||||||
Eliminations | Protective Solutions | |||||||||||
Total Revenue | |||||||||||
Total Revenue | 1,627 | 1,647 | 1,896 | ||||||||
Corporate | |||||||||||
Total Revenue | |||||||||||
Total Revenue | 0 | 0 | 0 | ||||||||
Net sales | 0 | 0 | 0 | ||||||||
Income Before Income Taxes | |||||||||||
Income Before Income Taxes | (144,626) | (113,289) | (147,785) | ||||||||
Identifiable Assets | |||||||||||
Identifiable Assets | $ 152,147 | $ 141,485 | 152,147 | 141,485 | 287,497 | ||||||
Depreciation, Depletion and Amortization | |||||||||||
Depreciation, Depletion and Amortization | 0 | 0 | 0 | ||||||||
Capital Expenditures | |||||||||||
Capital Expenditures | $ 7,091 | $ 8,764 | $ 20,914 |
Segment reporting - Restructuri
Segment reporting - Restructuring Asset Impairment and Acquisition Related Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Restructuring, asset impairment and acquisition-related costs | $ 144,626 | $ 113,289 | $ 147,785 |
Operating segments | Consumer Packaging | |||
Segment Reporting Information [Line Items] | |||
Restructuring, asset impairment and acquisition-related costs | 41,155 | 18,391 | 9,990 |
Operating segments | Display and Packaging | |||
Segment Reporting Information [Line Items] | |||
Restructuring, asset impairment and acquisition-related costs | (7,358) | 19,046 | 2,082 |
Operating segments | Paper and Industrial Converted Products | |||
Segment Reporting Information [Line Items] | |||
Restructuring, asset impairment and acquisition-related costs | 5,270 | 11,773 | 24,281 |
Operating segments | Protective Solutions | |||
Segment Reporting Information [Line Items] | |||
Restructuring, asset impairment and acquisition-related costs | 9,083 | 1,529 | 3,071 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Restructuring, asset impairment and acquisition-related costs | $ 96,476 | $ 62,550 | $ 108,361 |
Segment reporting - Sales to Un
Segment reporting - Sales to Unaffiliated Customers and Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sales to Unaffiliated Customers | |||||||||||
Revenue | $ 1,308,850 | $ 1,353,931 | $ 1,359,721 | $ 1,351,705 | $ 1,355,616 | $ 1,364,762 | $ 1,366,373 | $ 1,304,187 | $ 5,374,207 | $ 5,390,938 | $ 5,036,650 |
Long-lived Assets | |||||||||||
Long-lived Assets | 3,158,819 | 2,950,540 | 3,158,819 | 2,950,540 | 2,850,268 | ||||||
United States | |||||||||||
Sales to Unaffiliated Customers | |||||||||||
Revenue | 3,408,459 | 3,490,369 | 3,263,975 | ||||||||
Long-lived Assets | |||||||||||
Long-lived Assets | 2,177,918 | 1,953,391 | 2,177,918 | 1,953,391 | 1,962,196 | ||||||
Europe | |||||||||||
Sales to Unaffiliated Customers | |||||||||||
Revenue | 1,078,766 | 1,092,654 | 981,178 | ||||||||
Long-lived Assets | |||||||||||
Long-lived Assets | 648,648 | 641,600 | 648,648 | 641,600 | 659,615 | ||||||
Canada | |||||||||||
Sales to Unaffiliated Customers | |||||||||||
Revenue | 226,049 | 246,208 | 245,992 | ||||||||
Long-lived Assets | |||||||||||
Long-lived Assets | 107,470 | 113,782 | 107,470 | 113,782 | 120,062 | ||||||
All other | |||||||||||
Sales to Unaffiliated Customers | |||||||||||
Revenue | 660,933 | 561,707 | 545,505 | ||||||||
Long-lived Assets | |||||||||||
Long-lived Assets | $ 224,783 | $ 241,767 | $ 224,783 | $ 241,767 | $ 108,395 |
Accumulated other comprehensi_3
Accumulated other comprehensive loss - Accumulated Other Comprehensive Income Loss and Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $ 1,772,278 | $ 1,730,060 |
Ending Balance | 1,815,705 | 1,772,278 |
Foreign Currency Items | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (251,102) | (198,495) |
Other comprehensive income/(loss) before reclassifications | 9,108 | (53,504) |
Other comprehensive income/(loss) | 9,108 | (52,607) |
Ending Balance | (241,994) | (251,102) |
Foreign Currency Items | Fixed assets | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Foreign Currency Items | Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Foreign Currency Items | Net Income | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 897 |
Defined Benefit Pension Items | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (487,380) | (467,136) |
Other comprehensive income/(loss) before reclassifications | (111,493) | (50,232) |
Other comprehensive income/(loss) | (87,033) | (20,244) |
Ending Balance | (574,413) | (487,380) |
Defined Benefit Pension Items | Fixed assets | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Defined Benefit Pension Items | Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Defined Benefit Pension Items | Net Income | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive loss | 24,460 | 29,988 |
Gains and Losses on Cash Flow Hedges | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (2,431) | (641) |
Other comprehensive income/(loss) before reclassifications | 2,061 | (1,380) |
Other comprehensive income/(loss) | 2,035 | (1,614) |
Ending Balance | (396) | (2,431) |
Gains and Losses on Cash Flow Hedges | Fixed assets | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive loss | (107) | (305) |
Gains and Losses on Cash Flow Hedges | Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive loss | (176) | |
Gains and Losses on Cash Flow Hedges | Net Income | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive loss | 81 | 71 |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (740,913) | (666,272) |
Other comprehensive income/(loss) before reclassifications | (100,324) | (105,116) |
Amounts reclassified from accumulated other comprehensive loss | (107) | 88 |
Other comprehensive income/(loss) | (75,890) | (74,465) |
Ending Balance | (816,803) | (740,913) |
Accumulated Other Comprehensive Loss | Fixed assets | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive loss | (107) | (305) |
Accumulated Other Comprehensive Loss | Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive loss | (176) | |
Accumulated Other Comprehensive Loss | Net Income | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive loss | $ 24,541 | $ 30,956 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Selling, general and administrative expenses | $ 530,867 | $ 563,306 | $ 507,824 | ||||||||
Net sales | $ 1,308,850 | $ 1,353,931 | $ 1,359,721 | $ 1,351,705 | $ 1,355,616 | $ 1,364,762 | $ 1,366,373 | $ 1,304,187 | 5,374,207 | 5,390,938 | 5,036,650 |
Cost of sales | (4,316,378) | (4,349,932) | (4,077,998) | ||||||||
Income before income taxes | 380,766 | 378,531 | 314,554 | ||||||||
Provision for income taxes | (93,269) | (75,008) | (146,589) | ||||||||
Net income | 292,668 | 314,739 | $ 177,447 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income | (24,541) | (30,956) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Items | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Selling, general and administrative expenses | 0 | (897) | |||||||||
Net income | 0 | (897) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Effect of settlement | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Non-operating pension costs | (2,377) | (730) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Effect of curtailment loss | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Non-operating pension costs | 0 | (256) | |||||||||
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 | (30,382) | (36,689) | |||||||||
Income before income taxes | (32,759) | (37,675) | |||||||||
Provision for income taxes | 8,299 | 7,687 | |||||||||
Net income | (24,460) | (29,988) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net sales | 1,381 | (203) | |||||||||
Cost of sales | (1,488) | 95 | |||||||||
Income before income taxes | (107) | (108) | |||||||||
Provision for income taxes | 26 | 37 | |||||||||
Net income | (81) | (71) | |||||||||
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 | 1,381 | (203) | |||||||||
Cost of sales | (1,758) | (20) | |||||||||
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 | $ 270 | $ 115 |
Accumulated other comprehensi_5
Accumulated other comprehensive loss - Components of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gains and losses on cash flow hedges: | |||
Other comprehensive income/(loss) | $ (76,728) | $ (76,621) | $ 146,452 |
Foreign Currency Items | |||
Gains and losses on cash flow hedges: | |||
Other comprehensive income/(loss) before reclassifications, Before Tax Amount | 9,108 | (53,504) | |
Other comprehensive income/(loss) before reclassifications, Tax (Expense) Benefit | 0 | 0 | |
Other comprehensive income/(loss) before reclassifications | 9,108 | (53,504) | |
Other comprehensive income/(loss), Before Tax Amount | 9,108 | (52,607) | |
Other comprehensive income/(loss), Tax (Expense) Benefit | 0 | 0 | |
Other comprehensive income/(loss) | 9,108 | (52,607) | |
Foreign Currency Items | Net Income | |||
Gains and losses on cash flow hedges: | |||
Amounts reclassified from accumulated other comprehensive income/(loss), Before Tax Amount | 0 | 897 | |
Amounts reclassified from accumulated other comprehensive income/(loss), Tax (Expense) Benefit | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | 897 | |
Defined Benefit Pension Items | |||
Gains and losses on cash flow hedges: | |||
Other comprehensive income/(loss) before reclassifications, Before Tax Amount | (147,948) | (63,259) | |
Other comprehensive income/(loss) before reclassifications, Tax (Expense) Benefit | 36,455 | 13,027 | |
Other comprehensive income/(loss) before reclassifications | (111,493) | (50,232) | |
Other comprehensive income/(loss), Before Tax Amount | (115,189) | (25,584) | |
Other comprehensive income/(loss), Tax (Expense) Benefit | 28,156 | 5,340 | |
Other comprehensive income/(loss) | (87,033) | (20,244) | |
Defined Benefit Pension Items | Net Income | |||
Gains and losses on cash flow hedges: | |||
Amounts reclassified from accumulated other comprehensive income/(loss), Before Tax Amount | 32,759 | 37,675 | |
Amounts reclassified from accumulated other comprehensive income/(loss), Tax (Expense) Benefit | (8,299) | (7,687) | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 24,460 | 29,988 | |
Gains and Losses on Cash Flow Hedges | |||
Gains and losses on cash flow hedges: | |||
Other comprehensive income/(loss) before reclassifications, Before Tax Amount | 2,711 | (2,096) | |
Other comprehensive income/(loss) before reclassifications, Tax (Expense) Benefit | (650) | 716 | |
Other comprehensive income/(loss) before reclassifications | 2,061 | (1,380) | |
Other comprehensive income/(loss), Before Tax Amount | 2,711 | (2,293) | |
Other comprehensive income/(loss), Tax (Expense) Benefit | (676) | 679 | |
Other comprehensive income/(loss) | 2,035 | (1,614) | |
Gains and Losses on Cash Flow Hedges | Fixed assets | |||
Gains and losses on cash flow hedges: | |||
Amounts reclassified from accumulated other comprehensive income/(loss), Before Tax Amount | (107) | (305) | |
Amounts reclassified from accumulated other comprehensive income/(loss), Tax (Expense) Benefit | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income/(loss) | (107) | (305) | |
Gains and Losses on Cash Flow Hedges | Net Income | |||
Gains and losses on cash flow hedges: | |||
Amounts reclassified from accumulated other comprehensive income/(loss), Before Tax Amount | 107 | 108 | |
Amounts reclassified from accumulated other comprehensive income/(loss), Tax (Expense) Benefit | (26) | (37) | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 81 | 71 | |
Accumulated Other Comprehensive Loss | |||
Gains and losses on cash flow hedges: | |||
Other comprehensive income/(loss), Before Tax Amount | (103,370) | (80,484) | |
Other comprehensive income/(loss), Tax (Expense) Benefit | 27,480 | 6,019 | |
Other comprehensive income/(loss) | $ (75,890) | $ (74,465) | $ 145,347 |
Accumulated other comprehensi_6
Accumulated other comprehensive loss - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Defined benefit plan adjustment | $ (781) | $ (71) |
Selected quarterly financial _3
Selected quarterly financial data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Net sales | $ 1,308,850 | $ 1,353,931 | $ 1,359,721 | $ 1,351,705 | $ 1,355,616 | $ 1,364,762 | $ 1,366,373 | $ 1,304,187 | $ 5,374,207 | $ 5,390,938 | $ 5,036,650 |
Gross profit | 246,887 | 265,485 | 275,336 | 270,121 | 254,308 | 259,636 | 276,460 | 250,602 | 1,057,829 | 1,041,006 | 958,652 |
Restructuring/Asset impairment charges | 29,238 | 6,615 | 13,355 | 10,672 | 11,380 | 22,061 | 3,567 | 3,063 | 59,880 | 40,071 | 38,419 |
Net income attributable to Sonoco | $ 44,899 | $ 92,064 | $ 81,159 | $ 73,663 | $ 77,678 | $ 72,415 | $ 89,412 | $ 74,055 | $ 291,785 | $ 313,560 | $ 175,345 |
Net income attributable to Sonoco: | |||||||||||
Basic (usd per share) | $ 0.45 | $ 0.91 | $ 0.81 | $ 0.73 | $ 0.78 | $ 0.72 | $ 0.89 | $ 0.74 | $ 2.90 | $ 3.12 | $ 1.75 |
Diluted (usd per share) | 0.44 | 0.91 | 0.80 | 0.73 | 0.77 | 0.72 | 0.88 | 0.73 | 2.88 | 3.10 | 1.74 |
Cash dividends | |||||||||||
Cash dividends (usd per share) | 0.43 | 0.43 | 0.43 | 0.41 | 0.41 | 0.41 | 0.41 | 0.39 | $ 1.70 | $ 1.62 | $ 1.54 |
Market price | |||||||||||
Market price - high (usd per share) | 62.77 | 66.57 | 66.23 | 61.79 | 58.31 | 58.69 | 53.80 | 55.43 | |||
Market price - low (usd per share) | $ 55.12 | $ 55.44 | $ 59.65 | $ 51.29 | $ 50.30 | $ 51.18 | $ 46.94 | $ 46.55 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 11,692 | $ 9,913 | $ 10,884 |
Charged to Costs and Expenses | 4,320 | 3,471 | 1,439 |
Charged to Other | 322 | (425) | 243 |
Deductions | 1,952 | 1,267 | 2,653 |
Balance at End of Year | 14,382 | 11,692 | 9,913 |
LIFO Reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 18,854 | 17,632 | 17,319 |
Charged to Costs and Expenses | 1,349 | 1,222 | 313 |
Charged to Other | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 20,203 | 18,854 | 17,632 |
Valuation Allowance on Deferred Tax Assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 103,289 | 47,199 | 49,797 |
Charged to Costs and Expenses | 2,662 | (11,187) | 6,967 |
Charged to Other | (1,116) | 70,993 | (2,365) |
Deductions | (512) | 3,716 | 7,200 |
Balance at End of Year | $ 105,347 | $ 103,289 | $ 47,199 |
Uncategorized Items - son-20191
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (73,239,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (176,000) |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 318,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |