Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 04, 2021 | Apr. 21, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 4, 2021 | |
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 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 Common Stock, Shares Outstanding | 100,613,590 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0000091767 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Apr. 04, 2021 | Dec. 31, 2020 | [1] |
Current Assets | |||
Cash and cash equivalents | $ 587,532 | $ 564,848 | |
Trade accounts receivable, net of allowances | 667,060 | 658,808 | |
Other receivables | 176,847 | 103,636 | |
Inventories, net: | |||
Finished and in process | 178,873 | 167,018 | |
Materials and supplies | 295,198 | 283,673 | |
Prepaid expenses | 45,229 | 52,564 | |
Total Current Assets | 1,950,739 | 1,830,547 | |
Property, Plant and Equipment, Net | 1,212,516 | 1,244,110 | |
Goodwill | 1,328,214 | 1,389,255 | |
Other Intangible Assets, Net | 306,737 | 321,934 | |
Deferred Income Taxes | 40,742 | 42,479 | |
Right of Use Asset-Operating Leases | 278,537 | 296,020 | |
Other Assets | 163,265 | 152,914 | |
Total Assets | 5,280,750 | 5,277,259 | |
Current Liabilities | |||
Payable to suppliers | 565,785 | 536,939 | |
Accrued expenses and other | 500,902 | 511,489 | |
Notes payable and current portion of long-term debt | 444,171 | 455,784 | |
Accrued taxes | 19,812 | 7,415 | |
Total Current Liabilities | 1,530,670 | 1,511,627 | |
Long-term Debt, Net of Current Portion | 1,251,512 | 1,244,440 | |
Noncurrent Operating Lease Liabilities | 246,588 | 262,048 | |
Pension and Other Postretirement Benefits | 169,864 | 171,518 | |
Deferred Income Taxes | 79,682 | 86,018 | |
Other Liabilities | 89,636 | 91,080 | |
Common stock, no par value | |||
Authorized 300,000 shares 100,607 and 100,447 shares issued and outstanding at April 4, 2021 and December 31, 2020, respectively | 7,175 | 7,175 | |
Capital in excess of stated value | 315,741 | 314,056 | |
Accumulated other comprehensive loss | (782,520) | (756,842) | |
Retained earnings | 2,362,003 | 2,335,216 | |
Total Sonoco Shareholders’ Equity | 1,902,399 | 1,899,605 | |
Noncontrolling Interests | 10,399 | 10,923 | |
Total Equity | 1,912,798 | 1,910,528 | |
Total Liabilities and Equity | $ 5,280,750 | $ 5,277,259 | |
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - shares | Apr. 04, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 100,607,000 | 100,447,000 |
Common stock, shares outstanding (in shares) | 100,607,000 | 100,447,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 1,353,304 | $ 1,303,296 |
Cost of sales | 1,075,403 | 1,036,706 |
Gross profit | 277,901 | 266,590 |
Selling, general and administrative expenses | 145,230 | 123,888 |
Restructuring/Asset impairment charges | 6,846 | 12,599 |
Loss on divestiture of business, net | 5,516 | 0 |
Operating profit | 120,309 | 130,103 |
Non-operating pension costs | 7,284 | 7,579 |
Interest expense | 18,501 | 16,529 |
Interest income | 770 | 484 |
Income before income taxes | 95,294 | 106,479 |
Provision for income taxes | 24,045 | 26,756 |
Income before equity in earnings of affiliates | 71,249 | 79,723 |
Equity in earnings of affiliates, net of tax | 1,044 | 513 |
Net income | 72,293 | 80,236 |
Net loss attributable to noncontrolling interests | 4 | 209 |
Net income attributable to Sonoco | $ 72,297 | $ 80,445 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 101,046 | 100,855 |
Diluted (in shares) | 101,492 | 101,071 |
Net income attributable to Sonoco: | ||
Basic (in usd per share) | $ 0.72 | $ 0.80 |
Diluted (in usd per share) | $ 0.71 | $ 0.80 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income/(loss) | $ 72,293 | $ 80,236 |
Other comprehensive income/(loss): | ||
Foreign currency translation adjustments | (32,541) | (95,212) |
Changes in defined benefit plans, net of tax | 5,385 | 5,780 |
Changes in derivative financial instruments, net of tax | 958 | (4,555) |
Other comprehensive loss: | (26,198) | (93,987) |
Comprehensive income/(loss): | 46,095 | (13,751) |
Net loss attributable to noncontrolling interests | 4 | 209 |
Other comprehensive loss attributable to noncontrolling interests | 520 | 1,637 |
Comprehensive income/(loss) attributable to Sonoco | $ 46,619 | $ (11,905) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY (unaudited) - USD ($) $ in Thousands | Total | Common Shares | Capital in Excess of Stated Value | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | Impact of new accounting pronouncements | Impact of new accounting pronouncementsRetained Earnings | |
Beginning Balance at Dec. 31, 2019 | $ 1,815,705 | $ 7,175 | $ 310,778 | $ (816,803) | $ 2,301,532 | $ 13,023 | $ (209) | $ (209) | |
Beginning balance (shares) at Dec. 31, 2019 | 100,198,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 80,236 | 80,445 | (209) | ||||||
Other comprehensive income/(loss): | |||||||||
Translation gain/(loss) | (95,212) | (93,575) | (1,637) | ||||||
Defined benefit plan adjustment, net of tax | 5,780 | 5,780 | |||||||
Derivative financial instruments, net of tax | (4,555) | (4,555) | |||||||
Other comprehensive loss | (93,987) | (92,350) | (1,637) | ||||||
Dividends | (43,339) | (43,339) | |||||||
Dividends paid to noncontrolling interests | 0 | ||||||||
Issuance of stock awards | 376 | 376 | |||||||
Issuance of stock awards (shares) | 196,000 | ||||||||
Shares repurchased | (3,938) | (3,938) | |||||||
Shares repurchased (shares) | (65,000) | ||||||||
Stock-based compensation | 597 | 597 | |||||||
Ending Balance at Mar. 29, 2020 | 1,755,441 | $ 7,175 | 307,813 | (909,153) | 2,338,429 | 11,177 | |||
Ending balance (shares) at Mar. 29, 2020 | 100,329,000 | ||||||||
Beginning Balance at Dec. 31, 2020 | $ 1,910,528 | [1] | $ 7,175 | 314,056 | (756,842) | 2,335,216 | 10,923 | ||
Beginning balance (shares) at Dec. 31, 2020 | 100,447,000 | 100,447,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | $ 72,293 | 72,297 | (4) | ||||||
Other comprehensive income/(loss): | |||||||||
Translation gain/(loss) | (32,541) | (32,021) | (520) | ||||||
Defined benefit plan adjustment, net of tax | 5,385 | 5,385 | |||||||
Derivative financial instruments, net of tax | 958 | 958 | |||||||
Other comprehensive loss | (26,198) | (25,678) | (520) | ||||||
Dividends | (45,510) | (45,510) | |||||||
Issuance of stock awards | 364 | 364 | |||||||
Issuance of stock awards (shares) | 245,000 | ||||||||
Shares repurchased | $ (5,051) | (5,051) | |||||||
Shares repurchased (shares) | 0 | (85,000) | |||||||
Stock-based compensation | $ 6,372 | 6,372 | |||||||
Ending Balance at Apr. 04, 2021 | $ 1,912,798 | $ 7,175 | $ 315,741 | $ (782,520) | $ 2,362,003 | $ 10,399 | |||
Ending balance (shares) at Apr. 04, 2021 | 100,607,000 | 100,607,000 | |||||||
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Cash Flows from Operating Activities: | ||
Net income/(loss) | $ 72,293 | $ 80,236 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Asset impairment | 4,149 | 3,106 |
Depreciation, depletion and amortization | 61,599 | 60,824 |
Share-based compensation expense | 6,372 | 597 |
Equity in earnings of affiliates | (1,044) | (513) |
Cash dividends from affiliated companies | 350 | 350 |
Net gain on disposition of assets | (1,861) | (2,520) |
Loss on divestiture of business | 5,516 | 0 |
Pension and postretirement plan expense | 14,674 | 14,722 |
Pension and postretirement plan contributions | (26,338) | (24,812) |
Net (decrease)/increase in deferred taxes | (6,933) | 6,933 |
Change in assets and liabilities, net of effects from acquisitions and foreign currency adjustments: | ||
Trade accounts receivable | (44,307) | (64,868) |
Inventories | (36,682) | (12,185) |
Payable to suppliers | 51,039 | 6,820 |
Prepaid expenses | (336) | (2,853) |
Accrued expenses | 12,860 | 16,338 |
Income taxes payable and other income tax items | 20,056 | 4,687 |
Other assets and liabilities | 7,308 | 851 |
Net cash provided by operating activities | 138,715 | 87,713 |
Cash Flows from Investing Activities: | ||
Purchases of property, plant and equipment | (39,549) | (33,851) |
Cost of acquisitions, net of cash acquired | (2,353) | (3,973) |
Proceeds from the sale of assets | 234 | 3,188 |
Other net investing proceeds | 2,701 | 462 |
Net cash used in investing activities | (38,967) | (34,174) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of debt | 4,934 | 156,237 |
Principal repayment of debt | (11,350) | (7,833) |
Net change in commercial paper | 0 | (185,000) |
Net (decrease)/increase in outstanding checks | (13,208) | 6,594 |
Proceeds from cross-currency swap | 0 | 14,480 |
Cash dividends | (45,142) | (43,202) |
Shares repurchased | (5,051) | (3,938) |
Net cash used by financing activities | (69,817) | (62,662) |
Effects of Exchange Rate Changes on Cash | (7,247) | (12,825) |
Net Increase/(Decrease) in Cash and Cash Equivalents | 22,684 | (21,948) |
Cash and cash equivalents at beginning of period | 564,848 | 145,283 |
Cash and cash equivalents at end of period | $ 587,532 | $ 123,335 |
Basis of Interim Presentation
Basis of Interim Presentation | 3 Months Ended |
Apr. 04, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Interim Presentation | Basis of Interim Presentation In the opinion of the management of Sonoco Products Company (the “Company” or “Sonoco”), the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments, unless otherwise stated) necessary to state fairly the consolidated financial position, results of operations and cash flows for the interim periods reported herein. Operating results for the three months ended April 4, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. With respect to the unaudited condensed consolidated financial information of the Company for the three-month periods ended April 4, 2021 and March 29, 2020 included in this Form 10-Q, PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report dated May 4, 2021 appearing herein, states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP is not subject to the liability provisions of Section 11 of the Securities Act of 1933 for their report on the unaudited financial information because that report is not a “report” or a “part” of a registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the Act. As previously disclosed, the Company changed its operating and reporting structure in January 2021 and, as a result, realigned certain of its reportable segments effective January 1, 2021. The revised structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as "All Other." Additional information regarding segment realignment is provided in Note 14 to these Condensed Consolidated Financial Statements. All segment results for prior periods have been recast to conform to the new presentation. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Apr. 04, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements During the three-month period ended April 4, 2021, there have been no 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 April 4, 2021, there are no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Apr. 04, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions On March 8, 2021, the Company completed the acquisition of TuboTec, a tube and core operation in Brazil, for total cash consideration of $841. The acquisition of TuboTec further strengthens the Company's leadership position in tubes and cores. During the quarter ended April 4, 2021, the Company reached a final working capital settlement related to the August 3, 2020 acquisition of Can Packaging, a designer and manufacturer of sustainable paper packaging and related manufacturing equipment, based in Habsheim, France. Under the settlement, the Company made an additional cash payment of $1,512, recording an increase in goodwill on its Condensed Consolidated Balance Sheet at April 4, 2021. Goodwill for Can Packaging, none of which is expected to be deductible for income tax purposes, consists of increased access to certain markets. Can Packaging's financial results from the date acquired are included in the Company's Consumer Packaging segment. The valuations of the assets acquired and liabilities assumed in the 2020 acquisitions of Can Packaging and a small tube and core operation in Jacksonville, Florida, were finalized in the first quarter of 2021. No additional measurement period adjustments were recorded during the first quarter of 2021. The Company has accounted for its acquisitions as business combinations under the acquisition method of accounting, in accordance with the business combinations subtopic of the Accounting Standards Codification and has included the results of operations of the acquired businesses in the Company's Condensed Consolidated Statements of Income from their respective dates of acquisition. Divestitures On April 4, 2021, the Company completed the sale of its display and packaging business in the United States, part of the "All Other" group of businesses, to Hood Container Corporation for $80,000 in cash. This business provides design, manufacturing and fulfillment of point-of-purchase displays, as well as contract packaging services, for consumer product customers and has approximately 450 employees. Its operations include eight manufacturing and fulfillment facilities and four sales and design centers. Assets and liabilities disposed of in the sale included the following: U.S. Display and Packaging Trade accounts receivable $ 26,342 Inventories 8,434 Property, plant and equipment, net 9,551 Right of use asset - operating leases 11,627 Goodwill 53,039 Trade accounts payable (10,735) Accrued expenses (1,030) Operating lease liabilities (12,343) Other net tangible assets 716 $ 85,601 The selling price was adjusted at closing for certain transaction expenses and for anticipated differences between targeted levels of working capital and the projected levels at the time of closing. Although the sale was effective April 4, 2021, the last day of the quarter, the net cash proceeds of $79,704 were received on April 5, 2021; accordingly, the proceeds from the sale are considered noncash investing activity and included in "Other receivables" on the Company's Condensed Consolidated Balance Sheet at April 4, 2021. The Company anticipates that final working capital settlements will result in additional cash proceeds in the second quarter of 2021 of approximately $381. The Company recognized a loss on the sale of $(5,516), before tax. The decision to sell the display and packaging business in the United States is part of the Company's efforts to simplify its operating structure to focus on growing its core Consumer and Industrial packaging businesses around the world. This sale is not expected to notably affect consolidated operating margin percentages, nor does it represent a strategic shift for the Company that will have a major effect on the entity’s operations and financial results. Consequently, the sale did not meet the criteria for reporting as a discontinued operation. The net proceeds from the sale are expected to be used for general corporate purposes. The Company continually assesses its operational footprint as well as its overall portfolio of businesses and may consider the divestiture of plants and/or business units it considers to be suboptimal or nonstrategic. Acquisition and Divestiture-Related Transaction Costs |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Apr. 04, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Earnings per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended April 4, 2021 March 29, 2020 Numerator: Net income attributable to Sonoco $ 72,297 $ 80,445 Denominator: Weighted average common shares outstanding: Basic 101,046 100,855 Dilutive effect of stock-based compensation 446 216 Diluted 101,492 101,071 Net income attributable to Sonoco per common share: Basic $ 0.72 $ 0.80 Diluted $ 0.71 $ 0.80 Cash dividends $ 0.45 $ 0.43 No adjustments were made to "Net income attributable to Sonoco" in the computations of earnings per share. Anti-dilutive Securities Potentially dilutive securities are calculated in accordance with the treasury stock method, which assumes the proceeds from the exercise of all dilutive stock appreciation rights (SARs) are used to repurchase the Company’s common stock. Certain SARs are not dilutive because either the exercise price is greater than the average market price of the stock during the reporting period or assumed repurchases from proceeds from the exercise of the SARs were antidilutive. These SARs may become dilutive in the future if the market price of the Company's common stock appreciates. The average numbers of SARs that were not dilutive and, therefore, not included in the computation of diluted earnings per share during the three-month periods ended April 4, 2021 and March 29, 2020 were as follows: Three Months Ended April 4, 2021 March 29, 2020 Anti-dilutive stock appreciation rights 427 589 Stock Repurchases On February 10, 2016, the Company’s Board of Directors (the "Board") authorized the repurchase of up to 5,000 shares of the Company's common stock. A total of 2,030 shares were purchased in 2016. Since that time and through April 4, 2021, no additional shares have been repurchased under this authorization; accordingly, a total of 2,970 shares remained available for repurchase at April 4, 2021. On April 20, 2021, the Board authorized the replacement of the February 10, 2016 authorization with an authorization to repurchase the Company's common stock in an aggregate amount of up to $350,000. The Company frequently repurchases shares of its common stock to satisfy employee tax withholding obligations in association with certain share-based compensation awards. These repurchases, which are not part of a publicly announced plan or program, totaled 85 shares during the three months ended April 4, 2021, at a cost of $5,051, and 65 shares during the three months ended March 29, 2020, at a cost of $3,938. Dividend Declarations On February 10, 2021, the Board of Directors declared a regular quarterly dividend of $0.45 per share. This dividend was paid on March 10, 2021 to all shareholders of record as of February 24, 2021. On April 21, 2021, the Board of Directors declared a regular quarterly dividend of $0.45 per share. This dividend is payable on June 10, 2021 to all shareholders of record as of May 10, 2021. |
Restructuring and Asset Impairm
Restructuring and Asset Impairment | 3 Months Ended |
Apr. 04, 2021 | |
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 continually 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 quarter to quarter and 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: Three Months Ended April 4, 2021 March 29, 2020 Restructuring and restructuring-related asset impairment charges $ 2,697 $ 12,599 Other asset impairments 4,149 — Restructuring/Asset Impairment Charges $ 6,846 $ 12,599 The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred: Three Months Ended April 4, 2021 March 29, 2020 Severance and Termination Benefits $ 1,428 $ 10,100 Asset Impairment / Disposal of Assets (864) 2,686 Other Costs 2,133 (187) Restructuring and restructuring-related asset impairment charges $ 2,697 $ 12,599 The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment: Three Months Ended April 4, 2021 March 29, 2020 Consumer Packaging $ 1,085 $ 2,202 Industrial Paper Packaging 1,433 5,510 All Other 165 3,359 Corporate 14 1,528 Restructuring and restructuring-related asset impairment charges $ 2,697 $ 12,599 Restructuring and asset impairment charges are included in “Restructuring/Asset impairment charges” in the Company's Condensed Consolidated Statements of Income. The following table sets forth the activity in the restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: Severance Asset Other Total Accrual Activity Liability at December 31, 2020 $ 15,955 $ — $ 511 $ 16,466 2021 charges 1,428 (864) 2,133 2,697 Cash receipts/(payments) (6,092) 864 (2,249) (7,477) Asset write downs/disposals — — — — Foreign currency translation (172) — 1 (171) Liability at April 4, 2021 $ 11,119 $ — $ 396 $ 11,515 "Severance and Termination Benefits" during the first three months of 2021 includes the cost of severance provided to employees. The charges include the cost of severance for approximately 250 employees whose positions were eliminated in conjunction with the Company's ongoing organizational effectiveness efforts. "Asset Impairment/Disposal of Assets" during the first three months of 2021consists primarily of gains from the disposition of certain assets impaired in the prior year as a result of consolidations in the Company's perimeter-of-the-store thermoforming operations. “Other Costs” during the first three months of 2021consist primarily of costs related to plant closures including equipment removal, utilities, plant security, property taxes and insurance, net of incentive forfeitures. The Company expects to pay the majority of the remaining restructuring reserves by the end of 2021 using cash generated from operations. The Company also expects to recognize future additional charges totaling approximately $1,900 in connection with previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2021. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken. Other Asset Impairments The Company recognized other asset impairment charges totaling $4,149 in the first quarter of 2021 consisting of fixed asset impairments of $1,750 in the Company's perimeter-of-the-store thermoforming operations, part of the Consumer Packaging segment, and $2,399 in the temperature-assured packaging business, part of the All Other group of businesses. The assets were impaired as the value of their projected undiscounted cash flows was determined to no longer be sufficient to recover their carrying value. These asset impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s Condensed Consolidated Statements of Income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 04, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the three months ended April 4, 2021 and March 29, 2020: Foreign Defined Cash Accumulated Balance at December 31, 2020 $ (194,024) $ (562,747) $ (71) $ (756,842) Other comprehensive (loss)/income before reclassifications (32,021) 115 998 (30,908) Amounts reclassified from accumulated other comprehensive loss to net income — 5,270 (30) 5,240 Amounts reclassified from accumulated other comprehensive loss to fixed assets — — (10) (10) Other comprehensive (loss)/income (32,021) 5,385 958 (25,678) Balance at April 4, 2021 $ (226,045) $ (557,362) $ 887 $ (782,520) Balance at December 31, 2019 $ (241,994) $ (574,413) $ (396) $ (816,803) Other comprehensive (loss)/income before reclassifications (93,575) 197 (5,620) (98,998) Amounts reclassified from accumulated other comprehensive loss to net income — 5,583 1,065 6,648 Other comprehensive (loss)/income (93,575) 5,780 (4,555) (92,350) Balance at March 29, 2020 $ (335,569) $ (568,633) $ (4,951) $ (909,153) The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three-month periods ended April 4, 2021 and March 29, 2020: Amount Reclassified from Accumulated Three Months Ended Details about Accumulated Other April 4, March 29, Affected Line Item in Gains/(losses) on cash flow hedges Foreign exchange contracts $ 340 $ (1,138) Net sales Foreign exchange contracts (228) 827 Cost of sales Commodity contracts (71) (1,079) Cost of sales 41 (1,390) Income before income taxes (11) 325 Provision for income taxes 30 (1,065) Net income Defined benefit pension items Effect of settlement loss (a) — (623) Non-operating pension costs Amortization of defined benefit pension items (a) (6,901) (6,861) Non-operating pension costs (6,901) (7,484) Income before income taxes 1,631 1,901 Provision for income taxes (5,270) (5,583) Net income Total reclassifications for the period $ (5,240) $ (6,648) Net income (a) See Note 10 for additional details. The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the three-month periods ended April 4, 2021 and March 29, 2020: Three months ended April 4, 2021 Three months ended March 29, 2020 Before Tax Tax After Tax Before Tax Tax After Tax Foreign currency items: Net other comprehensive loss from foreign currency items (a) $ (32,021) $ — $ (32,021) $ (85,994) $ (7,581) $ (93,575) Defined benefit pension items: Other comprehensive income/(loss) before 151 (36) 115 264 (67) 197 Amounts reclassified from accumulated other 6,901 (1,631) 5,270 7,484 (1,901) 5,583 Net other comprehensive income/(loss) from 7,052 (1,667) 5,385 7,748 (1,968) 5,780 Gains and losses on cash flow hedges: Other comprehensive income/(loss) before 1,338 (340) 998 (7,333) 1,713 (5,620) Amounts reclassified from accumulated other (41) 11 (30) 1,390 (325) 1,065 Amounts reclassified from accumulated other (13) 3 (10) — — — Net other comprehensive income/(loss) from 1,284 (326) 958 (5,943) 1,388 (4,555) Other comprehensive loss $ (23,685) $ (1,993) $ (25,678) $ (84,189) $ (8,161) $ (92,350) (a) Other comprehensive loss from foreign currency items for the three months ended March 29, 2020, includes the settlement gain and corresponding tax provision related to the termination of a net investment hedge. See Note 8 for more information. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Apr. 04, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill A summary of the changes in goodwill by segment for the three months ended April 4, 2021 is as follows: Consumer Industrial Paper Packaging All Other Total Goodwill at December 31, 2020 $ 592,310 $ 317,958 $ 478,987 $ 1,389,255 Dispositions — — (53,039) (53,039) Foreign currency translation (4,536) (4,286) (692) (9,514) Measurement period adjustments 1,512 — — 1,512 Goodwill at April 4, 2021 $ 589,286 $ 313,672 $ 425,256 $ 1,328,214 Final working capital settlements were made in the first quarter of 2021 related to the 2020 acquisition of Can Packaging resulting in an increase in goodwill of $1,512. 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 2020. When completing goodwill impairment testing, the Company analyzed certain qualitative and quantitative factors in determining whether a goodwill impairment existed. 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. Additionally, in conjunction with the January 1, 2021 realignment of its reportable segments, as described in Note 14, several of the Company’s reporting units were realigned and the resulting components and reporting units were tested for impairment both before and after the realignment following the same methodology used by the Company in its annual goodwill impairment testing. Although no reporting units failed the annual impairment test or the testing performed as a result of the segment realignment noted above, in management’s opinion, the goodwill of the Conitex, Retail Packaging, and Plastics – Healthcare reporting units are at risk of impairment in the near term if these reporting units' operations do not perform in line with management's expectations, or if there is a negative change in the long-term outlook for these businesses or in other factors such as the discount rate. The results of these three reporting units have been negatively affected by the economic impact of the COVID-19 pandemic due to end-market weakness, as well as recent raw material price increases. Management currently expects customer demand will improve over the next few quarters and approach pre-pandemic levels in late 2021 or 2022 and that announced and/or planned selling price increases will mitigate higher raw material costs. However, should it become apparent that the post-COVID-19 recovery is likely to be weaker, or significantly delayed, compared to management’s current expectations, or significant negative price / cost relationships will persist over the long-term, goodwill impairment charges may be possible in the future. Total goodwill associated with the Conitex, Retail Packaging, and Plastics – Healthcare reporting units was $32,959, $70,139 and $63,379, respectively, at April 4, 2021. Based on their most recent impairment tests, the estimated fair values of the Conitex, Retail Packaging, and Plastics – Healthcare reporting units exceeded their individual carrying values by 6.9%, 17.3%, and 11.7%, respectively. In its annual goodwill impairment analysis as of September 27, 2020, projected future cash flows for Conitex were discounted at 10.8%. Based on the discounted cash flow model and holding other valuation assumptions constant, Conitex's projected operating profits across all future periods would have to be reduced approximately 6.2%, or the discount rate increased to 12.2%, in order for the estimated fair value to fall below the reporting unit’s carrying value. In the goodwill impairment analysis performed in conjunction with the 2021 reportable segment realignment, projected future cash flows for Retail Packaging were discounted at 7.7%. Based on the discounted cash flow model and holding other valuation assumptions constant, projected operating profits across all future periods would have to be reduced approximately 8.0%, or the discount rate increased to 10.6%, in order for the estimated fair value to fall below the reporting unit’s carrying value. In the goodwill impairment analysis performed in conjunction with the 2021 reportable segment realignment, projected future cash flows for Plastics - Healthcare were discounted at 7.9%. Based on the discounted cash flow model and holding other valuation assumptions constant, projected operating profits across all future periods would have to be reduced approximately 5.6%, or the discount rate increased to 9.1%, in order for the estimated fair value to fall below the reporting unit’s carrying value. Other Intangible Assets A summary of other intangible assets as of April 4, 2021 and December 31, 2020 is as follows: April 4, December 31, Other Intangible Assets, gross: Patents $ 29,322 $ 29,325 Customer lists 586,567 622,430 Trade names 32,077 32,088 Proprietary technology 22,842 22,813 Other 2,813 2,831 Other Intangible Assets, gross $ 673,621 $ 709,487 Accumulated Amortization: Patents $ (14,956) $ (14,511) Customer lists (317,004) (339,159) Trade names (12,699) (12,156) Proprietary technology (20,302) (19,833) Other (1,923) (1,894) Total Accumulated Amortization $ (366,884) $ (387,553) Other Intangible Assets, net $ 306,737 $ 321,934 Other Intangible Assets are amortized on a straight-line basis over their respective useful lives, which generally range from three Aggregate amortization expense was $12,749 and $13,271 for the three months ended April 4, 2021 and March 29, 2020, respectively. Amortization expense on other intangible assets is expected to total approximately $50,400 in 2021, $46,500 in 2022, $41,000 in 2023, $34,500 in 2024 and $26,300 in 2025. |
Financial Instruments and Deriv
Financial Instruments and Derivatives | 3 Months Ended |
Apr. 04, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Derivatives | Financial Instruments and Derivatives The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value. April 4, 2021 December 31, 2020 Carrying Fair Carrying Fair Long-term debt, net of current portion $ 1,251,512 $ 1,430,423 $ 1,244,440 $ 1,538,132 The carrying value of cash and cash equivalents and short-term debt approximates fair value. The fair value of long-term debt is determined based on recent trade information in the financial markets of the Company’s public debt or is determined by discounting future cash flows using interest rates available to the Company for issues with similar terms and maturities. It is considered a Level 2 fair value measurement. On April 28, 2021, subsequent to the end of the quarter, the Company commenced a cash tender offer to purchase up to $300,000 of the $600,000 outstanding principal amount of its 5.75% notes due November 2040. The offer, which will expire on May 25, 2021, unless extended or terminated earlier by the Company, includes an early tender premium of fifty dollars per thousand dollar principal amount for notes validly tendered by May 11, 2021. At April 4, 2021, the Company estimated the fair value of the 5.75% notes due November 2040 to exceed their carrying value by approximately 25%. On April 28, 2021, the Company entered into a reverse treasury lock agreement intended to fix the cash cost to fund approximately $100,000 of the maximum $300,000 principal amount subject to being tendered. The Company intends to use available cash on hand to purchase the notes validly tendered under this offer. Cash Flow Hedges At April 4, 2021 and December 31, 2020, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows. These contracts, which have maturities ranging to December 2022, qualify as cash flow hedges under U.S. GAAP. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. Commodity Cash Flow Hedges The Company has entered into certain derivative contracts to manage the cost of anticipated purchases of natural gas and aluminum. At April 4, 2021, natural gas swaps covering approximately 7.1 million MMBTUs were outstanding. These contracts represent approximately 67% and 41% of anticipated usage in North America for 2021 and 2022, respectively. Additionally, the Company had swap contracts covering 2,763 metric tons of aluminum, representing approximately 55% of anticipated usage for the remainder of 2021. The fair values of the Company’s commodity cash flow hedges netted to a gain position of $1,179 at April 4, 2021 and a loss position of $(647) at December 31, 2020. The amount of the gain included in Accumulated Other Comprehensive Income at April 4, 2021, that is expected to be reclassified to the income statement during the next twelve months is $953. Foreign Currency Cash Flow Hedges The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales, purchases, and capital spending expected to occur in 2021 and 2022. The net positions of these contracts at April 4, 2021 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 14,932,417 Mexican peso purchase 305,027 Polish zloty purchase 62,173 Canadian dollar purchase 16,254 Euro purchase 10,486 British pound purchase 4,039 Turkish lira purchase 1,835 New Zealand dollar sell (539) Australian dollar sell (840) The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to a gain position of $311 and $555 at April 4, 2021 and December 31, 2020, respectively. Gains of $311 are expected to be reclassified from accumulated other comprehensive income 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 April 4, 2021 and December 31, 2020, the net position of these contracts was $(289) and $47 respectively. During the three months ended April 4, 2021, gains from these hedges totaling $13 were reclassified from accumulated other comprehensive income and included in the carrying value of the capitalized expenditures. Losses of $(266) are expected to be reclassified from accumulated other comprehensive income and included in the carrying value of the related fixed assets acquired during the next twelve months. Net Investment Hedge In January 2020, the Company entered into 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 risk management objective was to manage foreign currency risk relating to net investments in certain European subsidiaries denominated in foreign currencies. As a result of significant strengthening of the U.S. dollar and a reduction in the differential between U.S. and European interest rates, the fair market value of the swap position appreciated significantly during the first quarter of 2020. In March 2020, the Company terminated the swap agreement and received a net cash settlement of $14,480. The Company recorded this foreign currency translation gain in "Accumulated other comprehensive loss," net of a tax provision of $7,581. Other Derivatives The Company routinely enters into forward contracts or swaps to economically hedge the currency exposure of intercompany debt and 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 currency positions of these contracts at April 4, 2021, were as follows (in thousands): Currency Action Quantity Indonesian rupiah purchase 31,761,364 Colombian peso purchase 22,472,400 Mexican peso purchase 329,502 Canadian dollar purchase 5,110 The Company has entered into certain other derivative contracts to manage the cost of purchases of diesel fuel. At April 4, 2021, diesel swaps covering approximately 0.5 million gallons were outstanding. The fair value of the Company’s other derivatives position was a gain of $771 an d $599 at April 4, 2021 and December 31, 2020, respectively. The following table sets forth the location and fair values of the Company’s derivative instruments at April 4, 2021 and December 31, 2020: Description Balance Sheet Location April 4, 2021 December 31, 2020 Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ 1,526 $ 867 Commodity Contracts Other assets $ 226 $ — Commodity Contracts Accrued expenses and other $ (573) $ (1,512) Commodity Contracts Other liabilities $ — $ (2) Foreign Exchange Contracts Prepaid expenses $ 946 $ 997 Foreign Exchange Contracts Accrued expenses and other $ (901) $ (395) Foreign Exchange Contracts Other liabilities $ (23) $ — Derivatives not designated as hedging instruments: Commodity Contracts Prepaid expenses $ 523 $ 484 Foreign Exchange Contracts Prepaid expenses $ 281 $ 140 Foreign Exchange Contracts Accrued expenses and other $ (34) $ (25) While certain of the Company’s derivative contract arrangements with its counterparties provide for the ability to settle contracts on a net basis, the Company reports its derivative positions on a gross basis. There are no collateral arrangements or requirements in these agreements. The Company's 1%, 150,000 euro-denominated debt matures on May 25, 2021. On April 7, 2021, subsequent to the end of the quarter, the Company entered into two forward contracts to buy a total of 150,000 euros. The risk management objective of the forward contracts, which mature on May 21, 2021, is to manage foreign currency risk related to the Company's funding of the debt repayment upon maturity. The U.S. dollar equivalent balance of the euro-denominated debt was approximately $176,100 at April 4, 2021. The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three months ended April 4, 2021 and March 29, 2020, excluding the gains on foreign currency cash flow hedges that were reclassified from accumulated other comprehensive income to the carrying value of the capitalized expenditures: Description Amount of Gain or Location of Gain Amount of Gain or Derivatives in Cash Flow Hedging Relationships: Three months ended April 4, 2021 Foreign Exchange Contracts $ (188) Net sales $ 340 Cost of sales $ (228) Commodity Contracts $ 1,754 Cost of sales $ (71) Three months ended March 29, 2020 Foreign Exchange Contracts $ (4,978) Net sales $ (1,138) Cost of sales $ 827 Commodity Contracts $ (2,355) Cost of sales $ (1,079) Description Gain or (Loss) Location of Gain or (Loss) Recognized in Derivatives not Designated as Hedging Instruments: Three months ended April 4, 2021 Commodity Contracts $ 378 Cost of sales Foreign Exchange Contracts $ (625) Selling, general and administrative Three months ended March 29, 2020 Commodity Contracts $ — Cost of sales Foreign Exchange Contracts $ (4,917) Selling, general and administrative Three months ended April 4, 2021 Three months ended March 29, 2020 Description Revenue Cost of Revenue Cost of Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 340 $ (299) $ (1,138) $ (252) 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 $ 340 $ (228) $ (1,138) $ 827 Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income $ — $ (71) $ — $ (1,079) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 04, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: Level 1 – Observable inputs such as quoted market prices in active markets; Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3 – Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. The following table sets forth information regarding the Company’s financial assets and financial liabilities, excluding retirement and postretirement plan assets, measured at fair value on a recurring basis: Description April 4, 2021 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ 1,179 $ — $ — $ 1,179 $ — Foreign exchange contracts $ 22 $ — $ — $ 22 $ — Non-hedge derivatives, net: Commodity contracts $ 523 $ — $ — $ 523 — Foreign exchange contracts $ 247 $ — $ — $ 247 $ — Description December 31, 2020 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (647) $ — $ — $ (647) $ — Foreign exchange contracts $ 602 $ — $ — $ 602 $ — Non-hedge derivatives, net: Commodity contracts $ 484 $ — $ — $ 484 $ — Foreign exchange contracts $ 115 $ — $ — $ 115 $ — As discussed in Note 8, the Company uses derivatives to mitigate the effect of raw material and energy cost fluctuations, foreign currency fluctuations and, from time to time, interest rate movements. Fair value measurements for the Company’s derivatives are classified under Level 2 because such measurements are estimated based on observable inputs such as interest rates, yield curves, spot and future commodity prices and spot and future exchange rates. The Company does not currently have any non-financial assets or liabilities that are recognized or disclosed at fair value on a recurring basis. None of the Company’s financial assets or liabilities are measured at fair value using significant unobservable inputs. There were no transfers in or out of Level 1 or Level 2 fair value measurements during the three-month period ended April 4, 2021. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Apr. 04, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Retirement Plans and Retiree Health and Life Insurance Plans The Company provides non-contributory defined benefit pension plans to certain of its employees in the United States, Mexico and Belgium. The Company also sponsors contributory defined benefit pension plans covering the majority of its employees in the United Kingdom, Canada, and the Netherlands. In addition, the Company provides postretirement healthcare and life insurance benefits to a limited number of its retirees and their dependents in the United States and Canada, based on certain age and/or service eligibility requirements. The Company froze participation in its U.S. qualified defined benefit pension plan for newly hired salaried and non-union hourly employees effective December 31, 2003. To replace this benefit, non-union U.S. employees hired on or after January 1, 2004, are provided an annual contribution, called the Sonoco Retirement Contribution (SRC), to their participant accounts in the Sonoco Retirement and Savings Plan. The SRC is equal to 4% of the participant's eligible pay plus 4% of eligible pay in excess of the social security wage base. 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: Three Months Ended April 4, 2021 March 29, 2020 Retirement Plans Service cost $ 961 $ 1,082 Interest cost 10,107 12,681 Expected return on plan assets (9,661) (12,580) Amortization of prior service cost 226 250 Amortization of net actuarial loss 6,871 6,876 Effect of settlement loss — 623 Net periodic benefit cost $ 8,504 $ 8,932 Retiree Health and Life Insurance Plans Service cost $ 94 $ 83 Interest cost 50 84 Expected return on plan assets (113) (90) Amortization of prior service credit — (68) Amortization of net actuarial gain (196) (197) Net periodic benefit income $ (165) $ (188) The Company made aggregate contributions of $3,673 and $2,309 to its defined benefit retirement and retiree health and life insurance plans during the three months ended April 4, 2021 and March 29, 2020, respectively. The Company expects to make additional contributions of approximately $13,500 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2021, excluding contributions to the Sonoco Pension Plan for Inactive Participants (the "Inactive Plan"). See Plan Termination below. Plan Termination As disclosed in previous filings, the Company terminated the Inactive Plan, a tax-qualified defined benefit plan, effective September 30, 2019. The Company expects to settle the liabilities of the Inactive Plan in the second quarter of 2021 through a combination of lump-sum payments and annuity purchases and expects to make additional contributions to the Inactive Plan during the second quarter of 2021 totaling approximately $150,000 in order to be fully funded on a termination basis at the time the liabilities are settled. The first of these contributions, in the amount of $50 million, was made on April 28, 2021, subsequent to the end of the first quarter. The actual amount of the Company's obligation under the Inactive Plan, and the remaining required cash contributions, will depend upon the nature and timing of participant settlements, as well as prevailing market conditions at the time the settlements occur. The Company realized a cash tax benefit of approximately $38,000 in 2020 on these anticipated contributions that will be deductible in its 2020 income tax filings. Non-cash, pretax settlement charges totaling approximately $560,000 are expected to be recognized in the second quarter of 2021 as the lump sum payouts and annuity purchases are made. Settlements and Curtailments The Company recognized settlement cha rges of $623 during the three months ended March 29, 2020. These charges resulted from payments made to certain participants in the Company's non-union Canadian pension plan who elected a lump sum distribution option upon retirement. Additional settlement charges related to the Canadian pension plans may be recognized over the remainder of 2021 as a result of ongoing lump-sum distributions and restructuring actions. Sonoco Retirement Contribution (SRC) SRC contributions, which are funded annually in the first quarter, totaled $22,665 during the three months ended April 4, 2021, and $22,503 during the three months ended March 29, 2020. No additional SRC contributions are expected during the remainder of 2021. The Company recognized expense related to the SRC of $6,335 and $5,978 for the quarters ended April 4, 2021 and March 29, 2020, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 04, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rates for the three-month periods ended April 4, 2021 and March 29, 2020 were 25.2% and 25.1%, respectively. The rate for the three-month period ended April 4, 2021 varied from the U.S. statutory rate due primarily to the unfavorable effect of certain international operations that were subject to tax rates generally higher than the U.S. statutory tax rate, the effect of state income taxes, and the effect of the Global Intangible Low Taxed Income (GILTI) tax. As previously disclosed, in February 2017 the Company received a Notice of Proposed Adjustment (“NOPA”) from the Internal Revenue Service (“IRS”) proposing adjustments to the 2012 and 2013 tax years. In 2018, the Company filed a protest to the proposed deficiency and the matter was referred to the Appeals Division of the IRS. In the second quarter of 2020, the Company agreed to pay approximately $6,000 in taxes and interest to settle the dispute and recorded the impact of this settlement in its provision for income taxes. The Company anticipates finalizing the audit and paying the assessment by the end of 2021. The Company and/or its subsidiaries file federal, state and local income tax returns in the United States and various foreign jurisdictions. As discussed above, the Company's U.S. federal income tax return is currently under audit for the 2012 and 2013 tax years. Other than this audit, with few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years prior to 2012. The Company is currently reviewing its utilization of foreign tax credits in previously filed income tax returns and, accordingly, may elect to amend its existing tax filings. A conclusion on this matter is expected to be reached in the next six months, and it is reasonably possible that a benefit material to the Company's financial statements will be recognized at that time. |
Leases
Leases | 3 Months Ended |
Apr. 04, 2021 | |
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 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. The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at April 4, 2021 and December 31, 2020: Classification Balance Sheet Location April 4, 2021 December 31, 2020 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 278,537 $ 296,020 Finance lease assets Other Assets 44,342 36,267 Total lease assets $ 322,879 $ 332,287 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 48,295 $ 52,138 Current finance lease liabilities Notes payable and current portion of debt 5,596 4,663 Total current lease liabilities $ 53,891 $ 56,801 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 246,588 $ 262,048 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 40,646 33,280 Total noncurrent lease liabilities $ 287,234 $ 295,328 Total lease liabilities $ 341,125 $ 352,129 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 assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term. The following table sets forth the components of the Company's total lease cost for the three month periods ended April 4, 2021 and March 29, 2020: Three Months Ended Lease Cost April 4, 2021 March 29, 2020 Operating lease cost (a) $ 13,195 $ 14,351 Finance lease cost: Amortization of lease asset (a) (b) 1,324 2,547 Interest on lease liabilities (c) 293 225 Variable lease cost (a) (d) 6,085 13,285 Total lease cost $ 20,897 $ 30,408 (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 . The following table sets forth certain lease-related information for the three months ended April 4, 2021 and March 29, 2020: Three months ended April 4, 2021 Three months ended March 29, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 13,934 $ 14,269 Operating cash flows used by finance leases $ 293 $ 225 Financing cash flows used by finance leases $ 1,024 $ 2,687 Noncash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities $ 4,281 $ 12,048 Leased assets obtained in exchange for new finance lease liabilities $ 5,406 $ 493 |
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 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. The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at April 4, 2021 and December 31, 2020: Classification Balance Sheet Location April 4, 2021 December 31, 2020 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 278,537 $ 296,020 Finance lease assets Other Assets 44,342 36,267 Total lease assets $ 322,879 $ 332,287 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 48,295 $ 52,138 Current finance lease liabilities Notes payable and current portion of debt 5,596 4,663 Total current lease liabilities $ 53,891 $ 56,801 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 246,588 $ 262,048 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 40,646 33,280 Total noncurrent lease liabilities $ 287,234 $ 295,328 Total lease liabilities $ 341,125 $ 352,129 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 assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term. The following table sets forth the components of the Company's total lease cost for the three month periods ended April 4, 2021 and March 29, 2020: Three Months Ended Lease Cost April 4, 2021 March 29, 2020 Operating lease cost (a) $ 13,195 $ 14,351 Finance lease cost: Amortization of lease asset (a) (b) 1,324 2,547 Interest on lease liabilities (c) 293 225 Variable lease cost (a) (d) 6,085 13,285 Total lease cost $ 20,897 $ 30,408 (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 . The following table sets forth certain lease-related information for the three months ended April 4, 2021 and March 29, 2020: Three months ended April 4, 2021 Three months ended March 29, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 13,934 $ 14,269 Operating cash flows used by finance leases $ 293 $ 225 Financing cash flows used by finance leases $ 1,024 $ 2,687 Noncash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities $ 4,281 $ 12,048 Leased assets obtained in exchange for new finance lease liabilities $ 5,406 $ 493 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 04, 2021 | |
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 with customers to provide goods and/or services over specific time periods. Customers submit purchase orders with quantities and prices to create a contract for accounting purposes. Shipping and handling expenses are included in "Cost of Sales," and freight charged to customers is included in "Net Sales" in the Company's Condensed Consolidated Statements of Income. The Company has rebate agreements with certain customers. These rebates are recorded as reductions of revenue and are accrued using sales data and rebate percentages specific to each customer agreement. Accrued customer rebates are included in "Accrued expenses and other" in the Company's Condensed Consolidated Balance Sheets. Payment terms under the Company's sales arrangements are short term, 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 time period following the sale. The following table sets forth information about receivables, contract assets, and liabilities from contracts with customers. Contract assets and liabilities are reported in "Other receivables" and "Accrued expenses and other," respectively, on the Company's Condensed Consolidated Balance Sheets. April 4, 2021 December 31, 2020 Contract Assets $ 51,455 $ 48,390 Contract Liabilities $ (12,643) $ (16,687) Significant changes in the contract assets and liabilities balances during the three months ended April 4, 2021 and the year ended December 31, 2020 were as follows: April 4, 2021 December 31, 2020 Contract Contract Contract Contract Beginning Balance $ 48,390 $ (16,687) $ 56,364 $ (17,047) Revenue deferred or rebates accrued — (10,348) — (32,512) Recognized as revenue 1,731 9,189 Rebates paid to customers — 12,661 — 23,683 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 51,455 — 48,390 — Transferred to receivables from contract assets recognized at the beginning of the period (48,390) — (56,364) — Ending Balance $ 51,455 $ (12,643) $ 48,390 $ (16,687) Contract assets and liabilities are generally short in duration given the nature of products produced by the Company. Contract assets represent 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 payments received in advance. For multi-year arrangements with pricing mechanisms, the Company will generally defer revenue during the first half of the arrangement and will release the deferral over the back half of the contract term. The Company's reportable segments are aligned by product nature as disclosed in Note 14 . The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended April 4, 2021 and March 29, 2020. The tables also include a reconciliation of disaggregated revenue with reportable segments. Three months ended April 4, 2021 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 397,797 $ 325,222 $ 174,731 $ 897,750 Europe 115,180 96,684 21,409 233,273 Canada 26,143 21,046 — 47,189 Asia 21,153 73,372 241 94,766 Other 22,480 49,073 8,773 80,326 Total $ 582,753 $ 565,397 $ 205,154 $ 1,353,304 Three months ended March 29, 2020 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 387,265 $ 296,220 $ 166,979 $ 850,464 Europe 89,823 83,540 84,131 257,494 Canada 25,845 25,577 — 51,422 Asia 16,538 55,784 202 72,524 Other 21,098 41,370 8,924 71,392 Total $ 540,569 $ 502,491 $ 260,236 $ 1,303,296 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Apr. 04, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company changed its operating and reporting structure in January 2021 and, as a result, realigned certain of its reportable segments effective January 1, 2021. The revised structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as "All Other." The Company's former Protective Solutions and Display and Packaging segments have been eliminated and the underlying businesses and their results have been realigned into All Other or, in certain cases, subsumed into the remaining two segments. The Consumer Packaging segment primarily serves prepared and fresh food markets along with other packaging for direct consumer products and includes the following products and services: round and shaped rigid paper containers; metal and peelable membrane ends and closures; thermoformed plastic trays and containers; p rinted flexible packaging; and global brand artwork management. The Industrial Paper Packaging segment, previously called Paper and Industrial Converted Products, includes the following products: fiber-based tubes, cones, and cores; fiber-based construction tubes; fiber-based protective packaging and components; wooden, metal and composite wire and cable reels and spools; and recycled paperboard, corrugating medium, recovered paper and material recycling services. Businesses grouped as All Other include healthcare, protective and retail packaging and industrial plastic products. These businesses include the following products and services: thermoformed rigid plastic trays and devices; custom-engineered molded foam protective packaging and components; temperature-assured packaging; injection molded and extruded containers, spools and parts; retail packaging, including printed backer cards, thermoformed blisters and heat sealing equipment; and paper amenities. Prior to the divestiture of the Company's display and packaging operations in two separate transactions, one on November 30, 2020 (Display and Packaging - Europe) and one on April 4, 2021 (Display and Packaging - U.S.), these businesses, which included point-of-purchase displays and fulfillment operations, were reported in All Other. The following table sets forth net sales, intersegment sales and operating profit for the Company’s reportable segments and All Other. “Segment operating profit” is defined as the segment’s portion of “Operating profit” excluding restructuring and asset impairment charges, acquisition expenses, interest income and expense, income taxes or certain other items, if any, the exclusion of which the Company believes improves comparability and analysis of the financial performance of the business. General corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and All Other. Prior period results have been recast to conform to current-year presentation. SEGMENT FINANCIAL INFORMATION Three Months Ended April 4, 2021 March 29, 2020 Net sales: Consumer Packaging $ 582,753 $ 540,569 Industrial Paper Packaging 565,397 502,491 All Other 205,154 260,236 Consolidated $ 1,353,304 $ 1,303,296 Intersegment sales: Consumer Packaging $ 1,653 $ 1,106 Industrial Paper Packaging 26,896 24,502 All Other 3,025 2,682 Consolidated $ 31,574 $ 28,290 Operating profit: Segment operating profit: Consumer Packaging $ 75,610 $ 63,756 Industrial Paper Packaging 50,186 59,601 All Other 13,871 20,555 Restructuring/Asset impairment charges (6,846) (12,599) Other non-base charges, net (12,512) (1,210) Consolidated $ 120,309 $ 130,103 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 04, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Pursuant to U.S. GAAP, accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and that the amounts are reasonably estimable. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings from a variety of sources. Some of these exposures, as discussed below, have the potential to be material. Environmental Matters The Company is subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which it operates. Spartanburg In connection with its acquisition of Tegrant in November 2011, the Company identified potential environmental contamination at a site in Spartanburg, South Carolina. The total remediation cost of the Spartanburg site was estimated to be $17,400 at the time of acquisition and an accrual in this amount was recorded on Tegrant’s opening balance sheet. Based on favorable developments at the site, the Company reduced its environmental reserve by $10,000 in 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. Since the acquisition, the Company has spent a total of $1,743 on remediation of the Spartanburg site. At April 4, 2021 and December 31, 2020, the Company's accrual for environmental contingencies related to the Spartanburg site totaled $5,657 and $5,700, 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 April 4, 2021 and December 31, 2020, the Company's accrual for these other sites tota led $2,398 and $2,433, respectively. Summary As of April 4, 2021 and December 31, 2020, the Company (and its subsidiaries) had accrued $8,055 and $8,133, respectively, related to environmental contingencies. These accruals are included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets. Other Legal Matters In addition to those matters described above, the Company is subject to other various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters could differ from management’s expectations, the Company does not believe the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s financial statements. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Apr. 04, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | During the three-month period ended April 4, 2021, there have been no 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 April 4, 2021, there are no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements. |
Fair Value Measurements | Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: Level 1 – Observable inputs such as quoted market prices in active markets; Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3 – Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Commitments and Contingencies | Pursuant to U.S. GAAP, accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and that the amounts are reasonably estimable. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings from a variety of sources. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Business Combinations [Abstract] | |
Schedule of Assets and Liabilities Held-for-sale | Assets and liabilities disposed of in the sale included the following: U.S. Display and Packaging Trade accounts receivable $ 26,342 Inventories 8,434 Property, plant and equipment, net 9,551 Right of use asset - operating leases 11,627 Goodwill 53,039 Trade accounts payable (10,735) Accrued expenses (1,030) Operating lease liabilities (12,343) Other net tangible assets 716 $ 85,601 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Equity [Abstract] | |
Earnings per share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended April 4, 2021 March 29, 2020 Numerator: Net income attributable to Sonoco $ 72,297 $ 80,445 Denominator: Weighted average common shares outstanding: Basic 101,046 100,855 Dilutive effect of stock-based compensation 446 216 Diluted 101,492 101,071 Net income attributable to Sonoco per common share: Basic $ 0.72 $ 0.80 Diluted $ 0.71 $ 0.80 Cash dividends $ 0.45 $ 0.43 |
Schedule of antidilutive securities excluded from computation of earnings per share | The average numbers of SARs that were not dilutive and, therefore, not included in the computation of diluted earnings per share during the three-month periods ended April 4, 2021 and March 29, 2020 were as follows: Three Months Ended April 4, 2021 March 29, 2020 Anti-dilutive stock appreciation rights 427 589 |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and restructuring-related asset impairment expenses by type incurred and by reportable segment | Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented: Three Months Ended April 4, 2021 March 29, 2020 Restructuring and restructuring-related asset impairment charges $ 2,697 $ 12,599 Other asset impairments 4,149 — Restructuring/Asset Impairment Charges $ 6,846 $ 12,599 The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred: Three Months Ended April 4, 2021 March 29, 2020 Severance and Termination Benefits $ 1,428 $ 10,100 Asset Impairment / Disposal of Assets (864) 2,686 Other Costs 2,133 (187) Restructuring and restructuring-related asset impairment charges $ 2,697 $ 12,599 The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment: Three Months Ended April 4, 2021 March 29, 2020 Consumer Packaging $ 1,085 $ 2,202 Industrial Paper Packaging 1,433 5,510 All Other 165 3,359 Corporate 14 1,528 Restructuring and restructuring-related asset impairment charges $ 2,697 $ 12,599 |
Restructuring accrual activity | The following table sets forth the activity in the restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: Severance Asset Other Total Accrual Activity Liability at December 31, 2020 $ 15,955 $ — $ 511 $ 16,466 2021 charges 1,428 (864) 2,133 2,697 Cash receipts/(payments) (6,092) 864 (2,249) (7,477) Asset write downs/disposals — — — — Foreign currency translation (172) — 1 (171) Liability at April 4, 2021 $ 11,119 $ — $ 396 $ 11,515 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Equity [Abstract] | |
Components of accumulated other comprehensive loss | The following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the three months ended April 4, 2021 and March 29, 2020: Foreign Defined Cash Accumulated Balance at December 31, 2020 $ (194,024) $ (562,747) $ (71) $ (756,842) Other comprehensive (loss)/income before reclassifications (32,021) 115 998 (30,908) Amounts reclassified from accumulated other comprehensive loss to net income — 5,270 (30) 5,240 Amounts reclassified from accumulated other comprehensive loss to fixed assets — — (10) (10) Other comprehensive (loss)/income (32,021) 5,385 958 (25,678) Balance at April 4, 2021 $ (226,045) $ (557,362) $ 887 $ (782,520) Balance at December 31, 2019 $ (241,994) $ (574,413) $ (396) $ (816,803) Other comprehensive (loss)/income before reclassifications (93,575) 197 (5,620) (98,998) Amounts reclassified from accumulated other comprehensive loss to net income — 5,583 1,065 6,648 Other comprehensive (loss)/income (93,575) 5,780 (4,555) (92,350) Balance at March 29, 2020 $ (335,569) $ (568,633) $ (4,951) $ (909,153) |
Effects on net income of significant amounts reclassified from accumulated other comprehensive loss | The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three-month periods ended April 4, 2021 and March 29, 2020: Amount Reclassified from Accumulated Three Months Ended Details about Accumulated Other April 4, March 29, Affected Line Item in Gains/(losses) on cash flow hedges Foreign exchange contracts $ 340 $ (1,138) Net sales Foreign exchange contracts (228) 827 Cost of sales Commodity contracts (71) (1,079) Cost of sales 41 (1,390) Income before income taxes (11) 325 Provision for income taxes 30 (1,065) Net income Defined benefit pension items Effect of settlement loss (a) — (623) Non-operating pension costs Amortization of defined benefit pension items (a) (6,901) (6,861) Non-operating pension costs (6,901) (7,484) Income before income taxes 1,631 1,901 Provision for income taxes (5,270) (5,583) Net income Total reclassifications for the period $ (5,240) $ (6,648) Net income (a) See Note 10 for additional details. |
Before and after tax amounts for comprehensive income (loss) components | The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the three-month periods ended April 4, 2021 and March 29, 2020: Three months ended April 4, 2021 Three months ended March 29, 2020 Before Tax Tax After Tax Before Tax Tax After Tax Foreign currency items: Net other comprehensive loss from foreign currency items (a) $ (32,021) $ — $ (32,021) $ (85,994) $ (7,581) $ (93,575) Defined benefit pension items: Other comprehensive income/(loss) before 151 (36) 115 264 (67) 197 Amounts reclassified from accumulated other 6,901 (1,631) 5,270 7,484 (1,901) 5,583 Net other comprehensive income/(loss) from 7,052 (1,667) 5,385 7,748 (1,968) 5,780 Gains and losses on cash flow hedges: Other comprehensive income/(loss) before 1,338 (340) 998 (7,333) 1,713 (5,620) Amounts reclassified from accumulated other (41) 11 (30) 1,390 (325) 1,065 Amounts reclassified from accumulated other (13) 3 (10) — — — Net other comprehensive income/(loss) from 1,284 (326) 958 (5,943) 1,388 (4,555) Other comprehensive loss $ (23,685) $ (1,993) $ (25,678) $ (84,189) $ (8,161) $ (92,350) (a) Other comprehensive loss from foreign currency items for the three months ended March 29, 2020, includes the settlement gain and corresponding tax provision related to the termination of a net investment hedge. See Note 8 for more information. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in goodwill by segment | A summary of the changes in goodwill by segment for the three months ended April 4, 2021 is as follows: Consumer Industrial Paper Packaging All Other Total Goodwill at December 31, 2020 $ 592,310 $ 317,958 $ 478,987 $ 1,389,255 Dispositions — — (53,039) (53,039) Foreign currency translation (4,536) (4,286) (692) (9,514) Measurement period adjustments 1,512 — — 1,512 Goodwill at April 4, 2021 $ 589,286 $ 313,672 $ 425,256 $ 1,328,214 |
Summary of other intangible assets | A summary of other intangible assets as of April 4, 2021 and December 31, 2020 is as follows: April 4, December 31, Other Intangible Assets, gross: Patents $ 29,322 $ 29,325 Customer lists 586,567 622,430 Trade names 32,077 32,088 Proprietary technology 22,842 22,813 Other 2,813 2,831 Other Intangible Assets, gross $ 673,621 $ 709,487 Accumulated Amortization: Patents $ (14,956) $ (14,511) Customer lists (317,004) (339,159) Trade names (12,699) (12,156) Proprietary technology (20,302) (19,833) Other (1,923) (1,894) Total Accumulated Amortization $ (366,884) $ (387,553) Other Intangible Assets, net $ 306,737 $ 321,934 |
Financial Instruments and Der_2
Financial Instruments and Derivatives (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Carrying amounts and fair values of financial instruments | The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value. April 4, 2021 December 31, 2020 Carrying Fair Carrying Fair Long-term debt, net of current portion $ 1,251,512 $ 1,430,423 $ 1,244,440 $ 1,538,132 |
Net positions of foreign contracts | The net positions of these contracts at April 4, 2021 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 14,932,417 Mexican peso purchase 305,027 Polish zloty purchase 62,173 Canadian dollar purchase 16,254 Euro purchase 10,486 British pound purchase 4,039 Turkish lira purchase 1,835 New Zealand dollar sell (539) Australian dollar sell (840) |
Net positions of other derivatives contracts | The net currency positions of these contracts at April 4, 2021, were as follows (in thousands): Currency Action Quantity Indonesian rupiah purchase 31,761,364 Colombian peso purchase 22,472,400 Mexican peso purchase 329,502 Canadian dollar purchase 5,110 |
Location and fair values of derivative instruments | The following table sets forth the location and fair values of the Company’s derivative instruments at April 4, 2021 and December 31, 2020: Description Balance Sheet Location April 4, 2021 December 31, 2020 Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ 1,526 $ 867 Commodity Contracts Other assets $ 226 $ — Commodity Contracts Accrued expenses and other $ (573) $ (1,512) Commodity Contracts Other liabilities $ — $ (2) Foreign Exchange Contracts Prepaid expenses $ 946 $ 997 Foreign Exchange Contracts Accrued expenses and other $ (901) $ (395) Foreign Exchange Contracts Other liabilities $ (23) $ — Derivatives not designated as hedging instruments: Commodity Contracts Prepaid expenses $ 523 $ 484 Foreign Exchange Contracts Prepaid expenses $ 281 $ 140 Foreign Exchange Contracts Accrued expenses and other $ (34) $ (25) |
Effect of derivative instruments on financial performance | The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three months ended April 4, 2021 and March 29, 2020, excluding the gains on foreign currency cash flow hedges that were reclassified from accumulated other comprehensive income to the carrying value of the capitalized expenditures: Description Amount of Gain or Location of Gain Amount of Gain or Derivatives in Cash Flow Hedging Relationships: Three months ended April 4, 2021 Foreign Exchange Contracts $ (188) Net sales $ 340 Cost of sales $ (228) Commodity Contracts $ 1,754 Cost of sales $ (71) Three months ended March 29, 2020 Foreign Exchange Contracts $ (4,978) Net sales $ (1,138) Cost of sales $ 827 Commodity Contracts $ (2,355) Cost of sales $ (1,079) Description Gain or (Loss) Location of Gain or (Loss) Recognized in Derivatives not Designated as Hedging Instruments: Three months ended April 4, 2021 Commodity Contracts $ 378 Cost of sales Foreign Exchange Contracts $ (625) Selling, general and administrative Three months ended March 29, 2020 Commodity Contracts $ — Cost of sales Foreign Exchange Contracts $ (4,917) Selling, general and administrative Three months ended April 4, 2021 Three months ended March 29, 2020 Description Revenue Cost of Revenue Cost of Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 340 $ (299) $ (1,138) $ (252) 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 $ 340 $ (228) $ (1,138) $ 827 Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income $ — $ (71) $ — $ (1,079) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured on recurring basis | The following table sets forth information regarding the Company’s financial assets and financial liabilities, excluding retirement and postretirement plan assets, measured at fair value on a recurring basis: Description April 4, 2021 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ 1,179 $ — $ — $ 1,179 $ — Foreign exchange contracts $ 22 $ — $ — $ 22 $ — Non-hedge derivatives, net: Commodity contracts $ 523 $ — $ — $ 523 — Foreign exchange contracts $ 247 $ — $ — $ 247 $ — Description December 31, 2020 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (647) $ — $ — $ (647) $ — Foreign exchange contracts $ 602 $ — $ — $ 602 $ — Non-hedge derivatives, net: Commodity contracts $ 484 $ — $ — $ 484 $ — Foreign exchange contracts $ 115 $ — $ — $ 115 $ — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost | The components of net periodic benefit cost include the following: Three Months Ended April 4, 2021 March 29, 2020 Retirement Plans Service cost $ 961 $ 1,082 Interest cost 10,107 12,681 Expected return on plan assets (9,661) (12,580) Amortization of prior service cost 226 250 Amortization of net actuarial loss 6,871 6,876 Effect of settlement loss — 623 Net periodic benefit cost $ 8,504 $ 8,932 Retiree Health and Life Insurance Plans Service cost $ 94 $ 83 Interest cost 50 84 Expected return on plan assets (113) (90) Amortization of prior service credit — (68) Amortization of net actuarial gain (196) (197) Net periodic benefit income $ (165) $ (188) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Leases [Abstract] | |
Balance sheet location and values of Company's lease assets and lease liabilities | The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at April 4, 2021 and December 31, 2020: Classification Balance Sheet Location April 4, 2021 December 31, 2020 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 278,537 $ 296,020 Finance lease assets Other Assets 44,342 36,267 Total lease assets $ 322,879 $ 332,287 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 48,295 $ 52,138 Current finance lease liabilities Notes payable and current portion of debt 5,596 4,663 Total current lease liabilities $ 53,891 $ 56,801 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 246,588 $ 262,048 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 40,646 33,280 Total noncurrent lease liabilities $ 287,234 $ 295,328 Total lease liabilities $ 341,125 $ 352,129 |
Components of Company's total lease costs and other lease related information | The following table sets forth the components of the Company's total lease cost for the three month periods ended April 4, 2021 and March 29, 2020: Three Months Ended Lease Cost April 4, 2021 March 29, 2020 Operating lease cost (a) $ 13,195 $ 14,351 Finance lease cost: Amortization of lease asset (a) (b) 1,324 2,547 Interest on lease liabilities (c) 293 225 Variable lease cost (a) (d) 6,085 13,285 Total lease cost $ 20,897 $ 30,408 (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 . |
Schedule of Weighted Average Remaining Lease Terms, Discounts Rates and Other Lease Information | The following table sets forth certain lease-related information for the three months ended April 4, 2021 and March 29, 2020: Three months ended April 4, 2021 Three months ended March 29, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 13,934 $ 14,269 Operating cash flows used by finance leases $ 293 $ 225 Financing cash flows used by finance leases $ 1,024 $ 2,687 Noncash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities $ 4,281 $ 12,048 Leased assets obtained in exchange for new finance lease liabilities $ 5,406 $ 493 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Receivables, contracts assets and liabilities from contracts with customers | The following table sets forth information about receivables, contract assets, and liabilities from contracts with customers. Contract assets and liabilities are reported in "Other receivables" and "Accrued expenses and other," respectively, on the Company's Condensed Consolidated Balance Sheets. April 4, 2021 December 31, 2020 Contract Assets $ 51,455 $ 48,390 Contract Liabilities $ (12,643) $ (16,687) Significant changes in the contract assets and liabilities balances during the three months ended April 4, 2021 and the year ended December 31, 2020 were as follows: April 4, 2021 December 31, 2020 Contract Contract Contract Contract Beginning Balance $ 48,390 $ (16,687) $ 56,364 $ (17,047) Revenue deferred or rebates accrued — (10,348) — (32,512) Recognized as revenue 1,731 9,189 Rebates paid to customers — 12,661 — 23,683 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 51,455 — 48,390 — Transferred to receivables from contract assets recognized at the beginning of the period (48,390) — (56,364) — Ending Balance $ 51,455 $ (12,643) $ 48,390 $ (16,687) |
Disaggregation of revenue | The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended April 4, 2021 and March 29, 2020. The tables also include a reconciliation of disaggregated revenue with reportable segments. Three months ended April 4, 2021 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 397,797 $ 325,222 $ 174,731 $ 897,750 Europe 115,180 96,684 21,409 233,273 Canada 26,143 21,046 — 47,189 Asia 21,153 73,372 241 94,766 Other 22,480 49,073 8,773 80,326 Total $ 582,753 $ 565,397 $ 205,154 $ 1,353,304 Three months ended March 29, 2020 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 387,265 $ 296,220 $ 166,979 $ 850,464 Europe 89,823 83,540 84,131 257,494 Canada 25,845 25,577 — 51,422 Asia 16,538 55,784 202 72,524 Other 21,098 41,370 8,924 71,392 Total $ 540,569 $ 502,491 $ 260,236 $ 1,303,296 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Segment Reporting [Abstract] | |
Segment financial information | SEGMENT FINANCIAL INFORMATION Three Months Ended April 4, 2021 March 29, 2020 Net sales: Consumer Packaging $ 582,753 $ 540,569 Industrial Paper Packaging 565,397 502,491 All Other 205,154 260,236 Consolidated $ 1,353,304 $ 1,303,296 Intersegment sales: Consumer Packaging $ 1,653 $ 1,106 Industrial Paper Packaging 26,896 24,502 All Other 3,025 2,682 Consolidated $ 31,574 $ 28,290 Operating profit: Segment operating profit: Consumer Packaging $ 75,610 $ 63,756 Industrial Paper Packaging 50,186 59,601 All Other 13,871 20,555 Restructuring/Asset impairment charges (6,846) (12,599) Other non-base charges, net (12,512) (1,210) Consolidated $ 120,309 $ 130,103 |
Basis of Interim Presentation (
Basis of Interim Presentation (Details) | 3 Months Ended |
Apr. 04, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments (segment) | 2 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) | Apr. 04, 2021USD ($)employeefacility | Mar. 08, 2021USD ($) | Jul. 04, 2021USD ($) | Apr. 04, 2021USD ($)employeefacility | Mar. 29, 2020USD ($) |
Business Acquisition [Line Items] | |||||
Measurement period adjustments | $ 1,512,000 | ||||
Loss on disposition of business | (5,516,000) | $ 0 | |||
Acquisition and divestiture-related costs | 10,025,000 | $ 1,171,000 | |||
Sold | Display and Packaging Reporting Unit | |||||
Business Acquisition [Line Items] | |||||
Consideration for disposal of business held for sale | $ 80,000,000 | $ 80,000,000 | |||
Approximate number of employees (employee) | employee | 450 | 450 | |||
Number of manufacturing and fulfillment facilities | facility | 8 | 8 | |||
Number of sales and design centers | facility | 4 | 4 | |||
Net cash proceeds | $ 79,704,000 | ||||
Loss on disposition of business | (5,516,000) | ||||
Sold | Display and Packaging Reporting Unit | Forecast | |||||
Business Acquisition [Line Items] | |||||
Net cash proceeds | $ 381,000 | ||||
TuboTec | |||||
Business Acquisition [Line Items] | |||||
Cash consideration paid | $ 841,000 | ||||
Can Packaging | |||||
Business Acquisition [Line Items] | |||||
Additional cash payment | $ 1,512,000 | ||||
Measurement period adjustments | 1,512,000 | ||||
Goodwill expected to be deductible for income tax purposes | $ 0 | $ 0 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Divestitures (Details) - Sold - Display and Packaging Reporting Unit $ in Thousands | Apr. 04, 2021USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Trade accounts receivable | $ 26,342 |
Inventories | 8,434 |
Property, plant and equipment, net | 9,551 |
Right of use asset - operating leases | 11,627 |
Goodwill | 53,039 |
Trade accounts payable | (10,735) |
Accrued expenses | (1,030) |
Operating lease liabilities | (12,343) |
Other net tangible assets | 716 |
Net assets disposed of | $ 85,601 |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Mar. 10, 2021 | Apr. 04, 2021 | Mar. 29, 2020 |
Numerator: | |||
Net income attributable to Sonoco | $ 72,297 | $ 80,445 | |
Denominator: | |||
Basic (in shares) | 101,046 | 100,855 | |
Dilutive effect of stock-based compensation (in shares) | 446 | 216 | |
Diluted (in shares) | 101,492 | 101,071 | |
Net income attributable to Sonoco per common share: | |||
Basic (in usd per share) | $ 0.72 | $ 0.80 | |
Diluted (in usd per share) | 0.71 | 0.80 | |
Cash dividends (in usd per share) | $ 0.45 | $ 0.45 | $ 0.43 |
Shareholders' Equity - Antidilu
Shareholders' Equity - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Equity [Abstract] | ||
Anti-dilutive stock appreciation rights (in shares) | 427 | 589 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 21, 2021 | Mar. 10, 2021 | Feb. 10, 2021 | Apr. 04, 2021 | Mar. 29, 2020 | Dec. 31, 2016 | Apr. 20, 2021 | Feb. 10, 2016 |
Class of Stock [Line Items] | ||||||||
Number of shares authorized for repurchase (in shares) | 5,000,000 | |||||||
Number of shares repurchased (in shares) | 0 | 2,030,000 | ||||||
Number of shares available for repurchase (in shares) | 2,970,000 | |||||||
Cost of shares repurchased | $ 5,051 | $ 3,938 | ||||||
Dividend declared and payable (in usd per share) | $ 0.45 | |||||||
Dividends paid (in usd per share) | $ 0.45 | $ 0.45 | $ 0.43 | |||||
Subsequent Event | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares authorized for repurchase (in shares) | 350,000,000 | |||||||
Dividend declared and payable (in usd per share) | $ 0.45 | |||||||
Tax Withholding Obligations | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares repurchased (in shares) | 85,000 | 65,000 | ||||||
Cost of shares repurchased | $ 5,051 | $ 3,938 |
Restructuring and Asset Impai_3
Restructuring and Asset Impairment - Restructuring and Restructuring-related Asset Impairment Expenses by Type Incurred and by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | $ 2,697 | $ 12,599 |
Other asset impairments | 4,149 | 0 |
Restructuring/Asset Impairment Charges | 6,846 | 12,599 |
Consumer Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Other asset impairments | 1,750 | |
All Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Other asset impairments | 2,399 | |
Operating Segments | Consumer Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 1,085 | 2,202 |
Operating Segments | Industrial Paper Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 1,433 | 5,510 |
Operating Segments | All Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 165 | 3,359 |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 14 | 1,528 |
Severance and Termination Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 1,428 | 10,100 |
Asset Impairment/ Disposal of Assets | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | (864) | 2,686 |
Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | $ 2,133 | $ (187) |
Restructuring and Asset Impai_4
Restructuring and Asset Impairment - Restructuring Accrual Activity (Details) $ in Thousands | 3 Months Ended |
Apr. 04, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2020 | $ 16,466 |
2021 charges | 2,697 |
Cash receipts/(payments) | (7,477) |
Asset write downs/disposals | 0 |
Foreign currency translation | (171) |
Liability at April 4, 2021 | 11,515 |
Severance and Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2020 | 15,955 |
2021 charges | 1,428 |
Cash receipts/(payments) | (6,092) |
Asset write downs/disposals | 0 |
Foreign currency translation | (172) |
Liability at April 4, 2021 | 11,119 |
Asset Impairment/ Disposal of Assets | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2020 | 0 |
2021 charges | (864) |
Cash receipts/(payments) | 864 |
Asset write downs/disposals | 0 |
Foreign currency translation | 0 |
Liability at April 4, 2021 | 0 |
Other Costs | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2020 | 511 |
2021 charges | 2,133 |
Cash receipts/(payments) | (2,249) |
Asset write downs/disposals | 0 |
Foreign currency translation | 1 |
Liability at April 4, 2021 | $ 396 |
Restructuring and Asset Impai_5
Restructuring and Asset Impairment - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021USD ($)position | Mar. 29, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Future additional charges expected to be recognized | $ 1,900 | |
Other asset impairments | 4,149 | $ 0 |
Consumer Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Other asset impairments | 1,750 | |
All Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Other asset impairments | $ 2,399 | |
Organizational effectiveness efforts | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of eliminated positions (position) | position | 250 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 04, 2021 | Mar. 29, 2020 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | $ 1,910,528 | [1] | $ 1,815,705 |
Other comprehensive (loss)/income | (26,198) | (93,987) | |
Ending Balance | 1,912,798 | 1,755,441 | |
Foreign Currency Items | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (194,024) | (241,994) | |
Other comprehensive (loss)/income before reclassifications | (32,021) | (93,575) | |
Amounts reclassified from accumulated other comprehensive loss net of tax | 0 | ||
Other comprehensive (loss)/income | (32,021) | (93,575) | |
Ending Balance | (226,045) | (335,569) | |
Foreign Currency Items | Fixed Assets | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive loss net of tax | 0 | ||
Foreign Currency Items | Net Income | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive loss net of tax | 0 | ||
Defined Benefit Pension Items | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (562,747) | (574,413) | |
Other comprehensive (loss)/income before reclassifications | 115 | 197 | |
Amounts reclassified from accumulated other comprehensive loss net of tax | 5,270 | ||
Other comprehensive (loss)/income | 5,385 | 5,780 | |
Ending Balance | (557,362) | (568,633) | |
Defined Benefit Pension Items | Fixed Assets | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive loss net of tax | 0 | ||
Defined Benefit Pension Items | Net Income | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive loss net of tax | 5,583 | ||
Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (71) | (396) | |
Other comprehensive (loss)/income before reclassifications | 998 | (5,620) | |
Amounts reclassified from accumulated other comprehensive loss net of tax | (30) | ||
Other comprehensive (loss)/income | 958 | (4,555) | |
Ending Balance | 887 | (4,951) | |
Cash Flow Hedges | Fixed Assets | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive loss net of tax | (10) | ||
Cash Flow Hedges | Net Income | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive loss net of tax | 1,065 | ||
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (756,842) | (816,803) | |
Other comprehensive (loss)/income before reclassifications | (30,908) | (98,998) | |
Amounts reclassified from accumulated other comprehensive loss net of tax | 5,240 | ||
Other comprehensive (loss)/income | (25,678) | (92,350) | |
Ending Balance | (782,520) | (909,153) | |
Accumulated Other Comprehensive Loss | Fixed Assets | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive loss net of tax | $ (10) | ||
Accumulated Other Comprehensive Loss | Net Income | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive loss net of tax | $ 6,648 | ||
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | $ 1,353,304 | $ 1,303,296 |
Cost of sales | (1,075,403) | (1,036,706) |
Income before income taxes | 95,294 | 106,479 |
Provision for income taxes | (24,045) | (26,756) |
Net income | 72,293 | 80,236 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | 340 | (1,138) |
Cost of sales | (299) | (252) |
Net income | (5,240) | (6,648) |
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | 41 | (1,390) |
Provision for income taxes | (11) | 325 |
Net income | 30 | (1,065) |
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Pension Items | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | (6,901) | (7,484) |
Provision for income taxes | 1,631 | 1,901 |
Net income | (5,270) | (5,583) |
Reclassification out of Accumulated Other Comprehensive Income | Effect of settlement loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-operating pension costs | 0 | (623) |
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 | (6,901) | (6,861) |
Reclassification out of Accumulated Other Comprehensive Income | Foreign exchange contracts | Cash Flow Hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | 340 | (1,138) |
Cost of sales | (228) | 827 |
Reclassification out of Accumulated Other Comprehensive Income | Commodity contracts | Cash Flow Hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | 0 | 0 |
Cost of sales | $ (71) | $ (1,079) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Before and After Tax Amounts for Comprehensive Income (Loss) Components (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive loss | $ (26,198) | $ (93,987) |
Foreign Currency Items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income/(loss) before tax | (32,021) | (85,994) |
Other comprehensive income/(loss), tax | 0 | (7,581) |
Other comprehensive loss | (32,021) | (93,575) |
Defined benefit pension items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive (loss)/income before reclassifications before tax | 151 | 264 |
Other comprehensive (loss)/income before reclassifications, tax | (36) | (67) |
Other comprehensive (loss)/income before reclassifications, net of tax | 115 | 197 |
Other comprehensive income/(loss) before tax | 7,052 | 7,748 |
Other comprehensive income/(loss), tax | (1,667) | (1,968) |
Other comprehensive loss | 5,385 | 5,780 |
Defined benefit pension items | Net Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 6,901 | 7,484 |
Amounts reclassified from accumulated other comprehensive income/(loss), tax | (1,631) | (1,901) |
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 5,270 | 5,583 |
Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive (loss)/income before reclassifications before tax | 1,338 | (7,333) |
Other comprehensive (loss)/income before reclassifications, tax | (340) | 1,713 |
Other comprehensive (loss)/income before reclassifications, net of tax | 998 | (5,620) |
Other comprehensive income/(loss) before tax | 1,284 | (5,943) |
Other comprehensive income/(loss), tax | (326) | 1,388 |
Other comprehensive loss | 958 | (4,555) |
Cash Flow Hedges | Fixed Assets | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | (13) | 0 |
Amounts reclassified from accumulated other comprehensive income/(loss), tax | 3 | 0 |
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | (10) | 0 |
Cash Flow Hedges | Net Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | (41) | 1,390 |
Amounts reclassified from accumulated other comprehensive income/(loss), tax | 11 | (325) |
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | (30) | 1,065 |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income/(loss) before tax | (23,685) | (84,189) |
Other comprehensive income/(loss), tax | (1,993) | (8,161) |
Other comprehensive loss | $ (25,678) | $ (92,350) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Goodwill by Segment (Details) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2020 | $ 1,389,255 | [1] |
Dispositions | (53,039) | |
Foreign currency translation | (9,514) | |
Measurement period adjustments | 1,512 | |
Goodwill at April 4, 2021 | 1,328,214 | |
Consumer Packaging | ||
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2020 | 592,310 | |
Dispositions | 0 | |
Foreign currency translation | (4,536) | |
Goodwill at April 4, 2021 | 589,286 | |
Industrial Paper Packaging | ||
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2020 | 317,958 | |
Dispositions | 0 | |
Foreign currency translation | (4,286) | |
Measurement period adjustments | 0 | |
Goodwill at April 4, 2021 | 313,672 | |
All Other | ||
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2020 | 478,987 | |
Dispositions | (53,039) | |
Foreign currency translation | (692) | |
Measurement period adjustments | 0 | |
Goodwill at April 4, 2021 | $ 425,256 | |
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) | 3 Months Ended | ||||
Apr. 04, 2021USD ($)reporting_unit | Sep. 27, 2020USD ($) | Mar. 29, 2020USD ($) | Dec. 31, 2020USD ($) | [1] | |
Goodwill [Line Items] | |||||
Measurement period adjustments | $ 1,512,000 | ||||
Goodwill, impairment loss | $ 0 | ||||
Number of reporting units | reporting_unit | 3 | ||||
Goodwill | $ 1,328,214,000 | $ 1,389,255,000 | |||
Indefinite-lived intangible assets | 0 | ||||
Aggregate amortization expense | 12,749,000 | $ 13,271,000 | |||
Amortization expense on other intangible assets in 2021 | 50,400,000 | ||||
Amortization expense on other intangible assets in 2022 | 46,500,000 | ||||
Amortization expense on other intangible assets in 2023 | 41,000,000 | ||||
Amortization expense on other intangible assets in 2024 | 34,500,000 | ||||
Amortization expense on other intangible assets in 2025 | $ 26,300,000 | ||||
Other | Minimum | |||||
Goodwill [Line Items] | |||||
Useful lives of intangible asset | 3 years | ||||
Other | Maximum | |||||
Goodwill [Line Items] | |||||
Useful lives of intangible asset | 40 years | ||||
Conitex Reporting Unit | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 32,959,000 | ||||
Excess of fair value of reporting unit over carrying value (percent) | 6.90% | ||||
Projected decrease in operating profit for estimated fair value to fall below carrying value (percent) | 6.20% | ||||
Conitex Reporting Unit | Discount Rate | |||||
Goodwill [Line Items] | |||||
Discount rate (percent) | 10.80% | ||||
Change necessary in order for estimated fair value to fall below carrying value (percent) | 12.20% | ||||
Retail Packaging | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 70,139,000 | ||||
Excess of fair value of reporting unit over carrying value (percent) | 17.30% | ||||
Projected decrease in operating profit for estimated fair value to fall below carrying value (percent) | 8.00% | ||||
Retail Packaging | Discount Rate | |||||
Goodwill [Line Items] | |||||
Discount rate (percent) | 7.70% | ||||
Change necessary in order for estimated fair value to fall below carrying value (percent) | 10.60% | ||||
Plastics - Healthcare | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 63,379,000 | ||||
Excess of fair value of reporting unit over carrying value (percent) | 11.70% | ||||
Projected decrease in operating profit for estimated fair value to fall below carrying value (percent) | 5.60% | ||||
Plastics - Healthcare | Discount Rate | |||||
Goodwill [Line Items] | |||||
Discount rate (percent) | 7.90% | ||||
Change necessary in order for estimated fair value to fall below carrying value (percent) | 9.10% | ||||
Can Packaging | |||||
Goodwill [Line Items] | |||||
Measurement period adjustments | $ 1,512,000 | ||||
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 04, 2021 | Dec. 31, 2020 | |
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | $ 673,621 | $ 709,487 | |
Total Accumulated Amortization | (366,884) | (387,553) | |
Other Intangible Assets, net | 306,737 | 321,934 | [1] |
Patents | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 29,322 | 29,325 | |
Total Accumulated Amortization | (14,956) | (14,511) | |
Customer lists | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 586,567 | 622,430 | |
Total Accumulated Amortization | (317,004) | (339,159) | |
Trade names | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 32,077 | 32,088 | |
Total Accumulated Amortization | (12,699) | (12,156) | |
Proprietary technology | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 22,842 | 22,813 | |
Total Accumulated Amortization | (20,302) | (19,833) | |
Other | |||
Other Intangible Assets, gross: | |||
Other Intangible Assets, gross | 2,813 | 2,831 | |
Total Accumulated Amortization | $ (1,923) | $ (1,894) | |
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Financial Instruments and Der_3
Financial Instruments and Derivatives - Carrying Amount and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Apr. 04, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net of current portion, fair value | $ 1,251,512 | $ 1,244,440 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net of current portion, fair value | $ 1,430,423 | $ 1,538,132 |
Financial Instruments and Der_4
Financial Instruments and Derivatives - Additional Information (Details) gal in Millions, MMBTU in Millions | 1 Months Ended | 3 Months Ended | |||||
Mar. 31, 2020USD ($) | Apr. 04, 2021USD ($)MMBTUTgal | Mar. 29, 2020USD ($) | Apr. 28, 2021USD ($) | Apr. 07, 2021USD ($) | Dec. 31, 2020USD ($) | Jan. 31, 2020USD ($) | |
Derivative [Line Items] | |||||||
Fair value of commodity cash flow hedges, gain (loss) | $ 1,179,000 | $ (647,000) | |||||
Commodity gain (loss) expected to be reclassified to the income statement during the next 12 months | 953,000 | ||||||
Fair value of foreign currency cash flow hedges, gain (loss) | 311,000 | 555,000 | |||||
Foreign currency gain (loss) expected to be reclassified to the income statement during the next 12 months | 311,000 | ||||||
Proceeds from cross-currency swap | 0 | $ 14,480,000 | |||||
Total fair value of other derivatives not designated as hedging instruments | 771,000 | 599,000 | |||||
1.0% Euro loan due May 2021 | |||||||
Derivative [Line Items] | |||||||
Outstanding balance | $ 176,100,000 | ||||||
Interest rate (percent) | 1.00% | ||||||
Debt principal | $ 150,000,000 | ||||||
Pending offer | Subsequent Event | 5.75% debentures due November 2040 | Notes | |||||||
Derivative [Line Items] | |||||||
Amount offered to be repurchased | $ 300,000,000 | ||||||
Outstanding balance | $ 600,000,000 | ||||||
Interest rate (percent) | 5.75% | ||||||
Early tender premium per thousand dollar principal | $ 50 | ||||||
Percentage of fair value of notes in excess of carrying amount (percent) | 25.00% | ||||||
Natural Gas Swaps | |||||||
Derivative [Line Items] | |||||||
Approximate amount of commodity covered by swap contracts outstanding (in MMBTUs) | MMBTU | 7.1 | ||||||
Anticipated usage percentage covered by a swap contract for the current fiscal year (percent) | 67.00% | ||||||
Anticipated usage percentage covered by a swap contract for the next fiscal year (percent) | 41.00% | ||||||
Aluminum Swaps | |||||||
Derivative [Line Items] | |||||||
Anticipated usage percentage covered by a swap contract for the current fiscal year (percent) | 55.00% | ||||||
Approximate amount of commodity covered by swap contracts outstanding (in tons) | T | 2,763 | ||||||
Cross-currency swap | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 250,000,000 | ||||||
Proceeds from cross-currency swap | $ 14,480,000 | ||||||
Tax provision on foreign currency translation gain | $ 7,581,000 | ||||||
Cross-currency swap | Subsequent Event | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 150,000,000 | ||||||
Diesel Swaps | |||||||
Derivative [Line Items] | |||||||
Gallons of diesel fuel covered under contract (gallons) | gal | 0.5 | ||||||
Forward contracts | |||||||
Derivative [Line Items] | |||||||
Fair value of foreign currency cash flow hedges, gain (loss) | $ (289,000) | $ 47,000 | |||||
Foreign currency gain (loss) expected to be reclassified to the income statement during the next 12 months | (266,000) | ||||||
Foreign currency gain (loss) reclassified to the income statement | $ 13,000 | ||||||
Reverse Treasury Lock Contract | Subsequent Event | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 100,000,000 |
Financial Instruments and Der_5
Financial Instruments and Derivatives - Net Positions of Foreign Contracts (Details) - Apr. 04, 2021 - Cash Flow Hedging ₺ in Thousands, € in Thousands, £ in Thousands, zł in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | COP ($) | MXN ($) | PLN (zł) | CAD ($) | EUR (€) | GBP (£) | TRY (₺) | NZD ($) | AUD ($) |
purchase | |||||||||
Derivative [Line Items] | |||||||||
Net position | $ 14,932,417 | $ 305,027 | zł 62,173 | $ 16,254 | € 10,486 | £ 4,039 | ₺ 1,835 | ||
sell | |||||||||
Derivative [Line Items] | |||||||||
Net position | $ 539 | $ 840 |
Financial Instruments and Der_6
Financial Instruments and Derivatives - Net Positions of Other Derivatives Contract (Details) - Apr. 04, 2021 - Derivatives Not Designated as Hedging Instruments Rp in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | COP ($) | MXN ($) | CAD ($) | IDR (Rp) |
purchase | ||||
Derivative [Line Items] | ||||
Net position | $ 22,472,400 | $ 329,502 | $ 5,110 | |
sell | ||||
Derivative [Line Items] | ||||
Net position | Rp 31,761,364 |
Financial Instruments and Der_7
Financial Instruments and Derivatives - Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Apr. 04, 2021 | Dec. 31, 2020 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 1,526 | $ 867 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 226 | 0 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (573) | (1,512) |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0 | (2) |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 946 | 997 |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (901) | (395) |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (23) | 0 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 523 | 484 |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 281 | 140 |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ (34) | $ (25) |
Financial Instruments and Der_8
Financial Instruments and Derivatives - Effect of Derivative Instruments on Financial Performance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | $ (188) | $ (4,978) |
Foreign exchange contracts | Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | 340 | (1,138) |
Foreign exchange contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | (228) | 827 |
Foreign exchange contracts | Selling, general and administrative | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized | (625) | (4,917) |
Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | 1,754 | (2,355) |
Commodity contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | (71) | (1,079) |
Commodity contracts | Cost of sales | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized | $ 378 | $ 0 |
Financial Instruments and Der_9
Financial Instruments and Derivatives - Reclassification of Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | $ 1,353,304 | $ 1,303,296 |
Cost of sales | (1,075,403) | (1,036,706) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | 340 | (1,138) |
Cost of sales | (299) | (252) |
Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | Foreign exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | 340 | (1,138) |
Cost of sales | (228) | 827 |
Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | Commodity contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | 0 | 0 |
Cost of sales | $ (71) | $ (1,079) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Recurring basis - USD ($) | Apr. 04, 2021 | Dec. 31, 2020 |
Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ 1,179,000 | $ (647,000) |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 22,000 | 602,000 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 523,000 | 484,000 |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 247,000 | 115,000 |
Assets measured at NAV | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Assets measured at NAV | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Assets measured at NAV | Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Assets measured at NAV | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 1 | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 1 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 1 | Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 1 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 2 | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 1,179,000 | (647,000) |
Level 2 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 22,000 | 602,000 |
Level 2 | Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 523,000 | 484,000 |
Level 2 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 247,000 | 115,000 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | |
Level 3 | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 3 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 3 | Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 3 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ 0 | $ 0 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | Apr. 28, 2021 | Apr. 04, 2021 | Mar. 29, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions | $ 3,673,000 | $ 2,309,000 | |
Expected contributions for remainder of fiscal year | 13,500,000 | ||
Settlement losses recognized | 623,000 | ||
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement losses recognized | 0 | 623,000 | |
Pension Plan | Sonoco Retirement Contribution | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions | 22,665,000 | 22,503,000 | |
Expected contributions for remainder of fiscal year | 0 | ||
Recognized expense related to the plan | 6,335,000 | $ 5,978,000 | |
Pension Plan | Sonoco Pension Plan for Inactive Participants | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions for remainder of fiscal year | 150,000,000 | ||
Estimated reduction of tax payments | 38,000,000 | ||
Non-cash settlement charges expected to be incurred next year | $ 560,000,000 | ||
Pension Plan | Sonoco Pension Plan for Inactive Participants | Subsequent Event | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions | $ 50,000,000 | ||
Pension Plan | United States | Sonoco Retirement Contribution | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of employees' gross pay (percent) | 4.00% | ||
Employer matching contribution, percent of employees' gross pay in excess of social security (percent) | 4.00% |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Effect of settlement loss | $ 623 | |
Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 961 | 1,082 |
Interest cost | 10,107 | 12,681 |
Expected return on plan assets | (9,661) | (12,580) |
Amortization of prior service cost | 226 | 250 |
Amortization of net actuarial loss | 6,871 | 6,876 |
Effect of settlement loss | 0 | 623 |
Net periodic benefit cost (income) | 8,504 | 8,932 |
Retiree Health and Life Insurance Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 94 | 83 |
Interest cost | 50 | 84 |
Expected return on plan assets | (113) | (90) |
Amortization of prior service cost | 0 | (68) |
Amortization of net actuarial loss | (196) | (197) |
Net periodic benefit cost (income) | $ (165) | $ (188) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 04, 2021 | Dec. 31, 2020 | Mar. 29, 2020 | |
Income Tax Contingency [Line Items] | |||
Effective tax rate | 25.20% | 25.10% | |
Increase of uncertain tax benefits | $ 300 | ||
Possible decrease in reserve for unrecognized tax benefits | $ 6,800 | ||
Internal Revenue Service (IRS) | |||
Income Tax Contingency [Line Items] | |||
Tax examination, possible loss | $ 6,000 |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended |
Apr. 04, 2021 | |
Lessee, Lease, Description [Line Items] | |
Lease term | 10 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal terms | 50 years |
Leases - Balance Sheet Location
Leases - Balance Sheet Location and Values of Lease Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Apr. 04, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease assets | $ 278,537 | $ 296,020 | [1] |
Finance lease assets | 44,342 | 36,267 | |
Total lease assets | 322,879 | 332,287 | |
Current operating lease liabilities | 48,295 | 52,138 | |
Current finance lease liabilities | 5,596 | 4,663 | |
Total current lease liabilities | 53,891 | 56,801 | |
Noncurrent operating lease liabilities | 246,588 | 262,048 | [1] |
Noncurrent finance lease liabilities | 40,646 | 33,280 | |
Total noncurrent lease liabilities | 287,234 | 295,328 | |
Total lease liabilities | $ 341,125 | $ 352,129 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | ||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Notes payable and current portion of long-term debt | ||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtNoncurrent | ||
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Leases - Components of Company'
Leases - Components of Company's Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 13,195 | $ 14,351 |
Amortization of lease asset | 1,324 | 2,547 |
Interest on lease liabilities | 293 | 225 |
Variable lease cost | 6,085 | 13,285 |
Total lease cost | $ 20,897 | $ 30,408 |
Leases - Other Lease Related In
Leases - Other Lease Related Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used by operating leases | $ 13,934 | $ 14,269 |
Operating cash flows used by finance leases | 293 | 225 |
Financing cash flows used by finance leases | 1,024 | 2,687 |
Leased assets obtained in exchange for new operating lease liabilities | 4,281 | 12,048 |
Leased assets obtained in exchange for new finance lease liabilities | $ 5,406 | $ 493 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 3 Months Ended |
Apr. 04, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Payment terms | 120 days |
Revenue Recognition - Receivabl
Revenue Recognition - Receivables, Contract Assets and Liabilities from Contracts with Customer (Details) - USD ($) $ in Thousands | Apr. 04, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | |||
Contract Assets | $ 51,455 | $ 48,390 | $ 56,364 |
Contract Liabilities | $ (12,643) | $ (16,687) | $ (17,047) |
Revenue Recognition - Significa
Revenue Recognition - Significant Changes in the Contract Assets and Liabilities Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 04, 2021 | Dec. 31, 2020 | |
Contract Asset | ||
Beginning Balance | $ 48,390 | $ 56,364 |
Increases due to rights to consideration for customer specific goods produced, but not billed during the period | 51,455 | 48,390 |
Transferred to receivables from contract assets recognized at the beginning of the period | (48,390) | (56,364) |
Ending Balance | 51,455 | 48,390 |
Contract Liability | ||
Beginning Balance | (16,687) | (17,047) |
Revenue deferred or rebates accrued | (10,348) | (32,512) |
Recognized as revenue | 1,731 | 9,189 |
Rebates paid to customers | 12,661 | 23,683 |
Ending Balance | $ (12,643) | $ (16,687) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,353,304 | $ 1,303,296 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 897,750 | 850,464 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 233,273 | 257,494 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 47,189 | 51,422 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 94,766 | 72,524 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 80,326 | 71,392 |
Operating Segments | Consumer Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 582,753 | 540,569 |
Operating Segments | Consumer Packaging | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 397,797 | 387,265 |
Operating Segments | Consumer Packaging | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 115,180 | 89,823 |
Operating Segments | Consumer Packaging | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 26,143 | 25,845 |
Operating Segments | Consumer Packaging | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 21,153 | 16,538 |
Operating Segments | Consumer Packaging | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 22,480 | 21,098 |
Operating Segments | Industrial Paper Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 565,397 | 502,491 |
Operating Segments | Industrial Paper Packaging | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 325,222 | 296,220 |
Operating Segments | Industrial Paper Packaging | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 96,684 | 83,540 |
Operating Segments | Industrial Paper Packaging | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 21,046 | 25,577 |
Operating Segments | Industrial Paper Packaging | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 73,372 | 55,784 |
Operating Segments | Industrial Paper Packaging | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 49,073 | 41,370 |
Operating Segments | All Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 205,154 | 260,236 |
Operating Segments | All Other | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 174,731 | 166,979 |
Operating Segments | All Other | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 21,409 | 84,131 |
Operating Segments | All Other | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Operating Segments | All Other | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 241 | 202 |
Operating Segments | All Other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 8,773 | $ 8,924 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Apr. 04, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (segment) | 2 |
Segment Reporting - Segment Fin
Segment Reporting - Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,353,304 | $ 1,303,296 |
Operating profit | 120,309 | 130,103 |
Restructuring/Asset impairment charges | (6,846) | (12,599) |
Other, net | (12,512) | (1,210) |
Operating Segments | Consumer Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 582,753 | 540,569 |
Operating profit | 75,610 | 63,756 |
Operating Segments | Industrial Paper Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 565,397 | 502,491 |
Operating profit | 50,186 | 59,601 |
Operating Segments | All Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 205,154 | 260,236 |
Operating profit | 13,871 | 20,555 |
Intersegment Sales | ||
Segment Reporting Information [Line Items] | ||
Net sales | 31,574 | 28,290 |
Intersegment Sales | Consumer Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,653 | 1,106 |
Intersegment Sales | Industrial Paper Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 26,896 | 24,502 |
Intersegment Sales | All Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 3,025 | $ 2,682 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 113 Months Ended | ||
Sep. 29, 2019 | Apr. 04, 2021 | Dec. 31, 2020 | Nov. 30, 2011 | |
Site Contingency [Line Items] | ||||
Environmental accrual | $ 8,055 | $ 8,133 | ||
Spartanburg, South Carolina Site | Selling, general and administrative | ||||
Site Contingency [Line Items] | ||||
Decrease of reserves | $ 10,000 | |||
Spartanburg, South Carolina Site | Tegrant Holding Corporation | ||||
Site Contingency [Line Items] | ||||
Environmental accrual | 5,657 | 5,700 | $ 17,400 | |
Payment towards remediation of sites | 1,743 | |||
Multiple Sites | ||||
Site Contingency [Line Items] | ||||
Environmental accrual | $ 2,398 | $ 2,433 |