Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 29, 2015 | Apr. 16, 2015 | |
Document Document And Entity Information [Abstract] | ||
Document Type | 10-Q/A | |
Amendment Flag | true | |
Amendment Description | Explanatory Note Restatement of Consolidated Financial Statements On July 16, 2015, Sonoco Products Company (the "Company") announced that it was conducting a review of the financial results for a contract packaging center in Irapuato, Mexico, part of its Display and Packaging segment, due to the discovery of misstatements of prior periods’ earnings. Through this review, which concluded in August 2015, the Company determined that revenue and cost of sales had been misstated from 2012 through the first quarter of 2015, resulting in a cumulative overstatement of net income of approximately $23.3 million, or $0.23 per diluted common share. The reported balance sheets were also misstated for the annual and interim periods from 2012 through the first quarter of 2015. The most significant misstatements were in trade accounts receivable, other receivables, prepaid expenses, payable to suppliers, and accrued expenses and other. Promptly upon discovery, the Company reported these accounting irregularities to the Audit Committee of the Board of Directors and self-reported the matter to the Securities and Exchange Commission. The Company's Audit Committee initiated a formal investigation into the matter to determine whether any adjustments would be required with respect to the Company's previously issued financial statements and management's report on internal control over financial reporting. The Audit Committee retained independent outside legal and accounting advisers to assist with this investigation. Based on the findings of the third party investigation and management's own internal investigation, the Company made the determination to restate its consolidated financial statements for the years ended December 31, 2014, 2013, and 2012, the interim periods within the year ended December 31, 2014, and the three-month period ended March 29, 2015. In addition, these restatements reflect the correction of certain out-of-period adjustments made in 2014 that the Company concluded at the time, based on its evaluation of both quantitative and qualitative factors, were not material to any of its previously issued financial statements. These adjustments included the following: As disclosed in the Company's Form 10-Q for the interim period ended June 29, 2014, during the second quarter of 2014 the Company recorded a valuation allowance of $11.5 million on deferred tax assets related to the pension plan of a foreign subsidiary. This valuation allowance should have been established in years prior to 2014 when the deferred tax assets were recognized. The error affected comprehensive income, but not net income, from 2010 through the first quarter of 2014. In December 2014, the valuation of finished goods and work in process inventory in our Flexible Packaging business (part of the Consumer Packaging segment) was found to have been based on incorrect costing standards resulting in the overstatement of finished goods and work in process inventory and a corresponding understatement of cost of sales totaling $1.2 million. Pretax operating profits for the segment had been overstated by approximately $0.9 million in 2012 and $0.3 million in 2013. The adjustment resulted in a $0.8 million reduction in the Company's reported net income in 2014. In December 2014, an out-of-period adjustment was made that reduced both deferred tax expense and deferred tax liabilities in various jurisdictions by a total of $3.2 million. Of this adjustment, approximately $0.6 million related to 2013, $0.5 million to 2012, $0.8 million to 2011, $0.9 million to 2010, and $0.4 million to 2009. The Company also identified a classification error in its previously reported condensed consolidated statement of cash flows for the three-month period ended March 29, 2015, in which cash outflows relating to the purchase of long-term investment properties in Venezuela totaling $2,841 were incorrectly reported as operating cash flows instead of an investing activity. Accordingly, an adjustment has been made to the previously reported condensed consolidated financial statements to increase both net cash provided by operating activities and net cash used in investing activities. In its assessment of materiality, the Company considered, both individually and in the aggregate, the misstatements at the contract packaging center in Irapuato, Mexico, and the impact of the other items discussed above. Its assessment included an evaluation of the qualitative and quantitative factors relevant to that assessment. The Company concluded that the misstatements associated with the Irapuato packaging center warranted restatement of the previously reported financial statements for the years ended December 31, 2014, 2013, and 2012, the interim periods within the year ended December 31, 2014, and the quarterly period ended March 29, 2015. In addition, the restated consolidated financial statements have been revised to reflect in the proper periods the previously recorded out-of-period adjustments and the cash flow classification error described above. Restated consolidated financial statements for the years ended December 31, 2014, 2013, and 2012, and for the quarterly period ended September 28, 2014, can be found in "Financial Statements and Supplementary Data" in Item 8 of the Company's 2014 amended Annual Report on Form 10-K/A, filed on August 26, 2015. Restated condensed consolidated financial statements for the quarterly period ended June 29, 2014, can be found in "Financial Statements" in Item 1 of the Company's Quarterly Report on Form 10-Q, filed on August 26, 2015. Restated condensed consolidated financial statements for the quarterly periods ended March 29, 2015 and March 30, 2014 are provided in "Financial Statements" in Item 1 of this amended Quarterly Report on Form 10-Q/A. Internal Control Over Financial Reporting Management reassessed its evaluation of the effectiveness of its internal control over financial reporting as of December 31, 2014, based on the framework established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. As a result of that reassessment, management identified material weaknesses and, accordingly, has concluded that the Company did not maintain effective internal control over financial reporting as of December 31, 2014. Management has restated its report on internal control over financial reporting. For a description of the material weaknesses in internal control over financial reporting and actions taken and to be taken to remediate the material weaknesses, see "Part II - Item 9A - Controls and Procedures." of the Company's amended 2014 Annual Report on Form 10-K/A. The following items in the original filing have been amended: Part I, Item 1. Financial Statements Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Part I, Item 4. Controls and Procedures Part II, Item 6. Exhibits The Company's Chief Executive Officer and Chief Financial Officer are providing currently dated certifications in connection with this amended Quarterly Report on Form 10-Q/A. These certifications are filed as Exhibits 31 and 32. This amended Quarterly Report on Form 10-Q/A does not reflect events occurring after the original filing on April 29, 2015, or modify or update those disclosures affected by subsequent events, except for the effects of the restatement. Disclosures not affected by the restatement are unchanged and reflect the disclosures made at the time of original filing. | |
Document Period End Date | Mar. 29, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SON | |
Entity Registrant Name | SONOCO PRODUCTS CO | |
Entity Central Index Key | 91,767 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 100,899,718 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 29, 2015 | Dec. 31, 2014 | [1] | Mar. 30, 2014 | Dec. 31, 2013 | |
Current Assets | ||||||
Cash and cash equivalents | $ 200,804 | $ 161,168 | $ 191,407 | $ 217,567 | [1] | |
Trade accounts receivable, net of allowances | 685,922 | 653,737 | ||||
Other receivables | 39,427 | 38,580 | ||||
Inventories: | ||||||
Finished and in process | 149,123 | 151,150 | ||||
Materials and supplies | 254,362 | 269,126 | ||||
Prepaid expenses | 51,097 | 61,071 | ||||
Deferred income taxes | 25,512 | 38,957 | ||||
Total Current Assets | 1,406,247 | 1,373,789 | ||||
Property, Plant and Equipment, Net | 1,102,481 | 1,148,607 | ||||
Goodwill | 1,146,685 | 1,177,962 | ||||
Other Intangible Assets, Net | 261,378 | 280,935 | ||||
Long-term Deferred Income Taxes | 46,007 | 45,442 | ||||
Other Assets | 173,332 | 167,176 | ||||
Total Assets | 4,136,130 | 4,193,911 | ||||
Current Liabilities | ||||||
Payable to suppliers | 514,936 | 517,228 | ||||
Accrued expenses and other | 288,974 | 334,086 | ||||
Notes payable and current portion of long-term debt | 51,936 | 52,280 | ||||
Accrued taxes | 14,920 | 8,599 | ||||
Total Current Liabilities | 870,766 | 912,193 | ||||
Long-term Debt, Net of Current Portion | 1,200,509 | 1,200,885 | ||||
Pension and Other Postretirement Benefits | 436,900 | 444,231 | ||||
Deferred Income Taxes | 85,523 | 91,157 | ||||
Other Liabilities | $ 42,635 | $ 41,598 | ||||
Commitments and Contingencies | ||||||
Sonoco Shareholders' Equity | ||||||
Common stock, no par value, Authorized 300,000 shares 100,899 and 100,603 shares issued and outstanding at March 29, 2015 and December 31, 2014, respectively | $ 7,175 | $ 7,175 | ||||
Capital in excess of stated value | 398,224 | 396,980 | ||||
Accumulated other comprehensive loss | (666,769) | (608,851) | $ (372,795) | $ (369,869) | ||
Retained earnings | 1,746,238 | 1,692,891 | ||||
Total Sonoco Shareholders’ Equity | 1,484,868 | 1,488,195 | ||||
Noncontrolling Interests | 14,929 | 15,652 | ||||
Total Equity | 1,499,797 | 1,503,847 | ||||
Total Liabilities and Equity | $ 4,136,130 | $ 4,193,911 | ||||
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares shares in Thousands | Mar. 29, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, number of shares authorized | 300,000 | 300,000 |
Common stock, number of shares issued | 100,899 | 100,603 |
Common stock, number of shares outstanding | 100,899 | 100,603 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Income Statement [Abstract] | ||
Net sales | $ 1,206,052 | $ 1,190,032 |
Cost of sales | 985,662 | 980,271 |
Gross profit | 220,390 | 209,761 |
Selling, general and administrative expenses | 96,665 | 123,750 |
Restructuring/Asset impairment charges | (359) | 1,992 |
Income before interest and income taxes | 124,084 | 84,019 |
Interest expense | 13,775 | 13,284 |
Interest income | 554 | 641 |
Income before income taxes | 110,863 | 71,376 |
Provision for income taxes | 26,221 | 22,511 |
Income before equity in earnings of affiliates | 84,642 | 48,865 |
Equity in earnings of affiliates, net of tax | 1,046 | 1,476 |
Net income | 85,688 | 50,341 |
Net loss attributable to noncontrolling interests | 92 | 77 |
Net income attributable to Sonoco | $ 85,780 | $ 50,418 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 101,283 | 102,771 |
Diluted (in shares) | 102,167 | 103,767 |
Net income attributable to Sonoco per common share: | ||
Basic (in usd per share) | $ 0.85 | $ 0.49 |
Diluted (in usd per share) | 0.84 | 0.49 |
Cash dividends (in usd per share) | $ 0.32 | $ 0.31 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 85,688 | $ 50,341 |
Other comprehensive income/(loss): | ||
Foreign currency translation adjustments | (62,986) | (7,336) |
Changes in defined benefit plans, net of tax | 6,273 | 4,174 |
Changes in derivative financial instruments, net of tax | (1,205) | 236 |
Other comprehensive (loss) | (57,918) | (2,926) |
Comprehensive income | 27,770 | 47,415 |
Net loss attributable to noncontrolling interests | 92 | 77 |
Comprehensive income attributable to Sonoco | $ 28,493 | $ 47,611 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 29, 2015 | Mar. 30, 2014 | Dec. 31, 2014 | |||
Cash Flows from Operating Activities: | |||||
Net income | $ 85,688 | $ 50,341 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Asset impairment | 275 | 492 | |||
Depreciation, depletion and amortization | 51,877 | 47,179 | |||
Gain on reversal of Fox River environmental reserves | (32,543) | 0 | |||
Share-based compensation expense | 3,878 | 5,560 | |||
Equity in earnings of affiliates | (1,046) | (1,476) | |||
Cash dividends from affiliated companies | 450 | 900 | |||
Gain on disposition of assets | (8,369) | (872) | |||
Pension and postretirement plan expense | 13,012 | 9,113 | |||
Pension and postretirement plan contributions | (17,017) | (43,515) | |||
Tax effect of share-based compensation exercises | 3,404 | 1,664 | |||
Excess tax benefit of share-based compensation | (3,400) | (1,758) | |||
Net increase in deferred taxes | 3,405 | 2,069 | |||
Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: | |||||
Trade accounts receivable | (48,936) | (68,142) | |||
Inventories | (6,066) | (3,185) | |||
Payable to suppliers | 7,094 | 11,313 | |||
Prepaid expenses | 530 | (1,344) | |||
Accrued expenses | (4,036) | 6,407 | |||
Income taxes payable and other income tax items | 15,301 | 25,054 | |||
Other assets and liabilities | (3,171) | 5,664 | |||
Net cash provided by operating activities | 60,330 | 45,464 | |||
Cash Flows from Investing Activities: | |||||
Purchase of property, plant and equipment | (40,954) | (37,717) | |||
Proceeds from the sale of assets | 30,708 | 2,299 | |||
Investment in affiliates and other, net | (2,808) | 22 | |||
Net cash used in investing activities | (13,054) | (35,396) | |||
Cash Flows from Financing Activities: | |||||
Proceeds from issuance of debt | 14,127 | 14,156 | |||
Principal repayment of debt | (12,802) | (10,461) | |||
Net decrease in outstanding checks | 8,752 | 182 | |||
Excess tax benefit of share-based compensation | 3,400 | 1,758 | |||
Cash dividends | (32,263) | (31,725) | |||
Shares acquired | (7,591) | (10,678) | |||
Shares issued | 1,165 | 1,867 | |||
Net cash used in financing activities | (25,212) | (34,901) | |||
Effects of Exchange Rate Changes on Cash | 17,572 | (1,327) | |||
Net Increase/(Decrease) in Cash and Cash Equivalents | 39,636 | (26,160) | |||
Cash and cash equivalents at beginning of period | [1] | 161,168 | 217,567 | $ 217,567 | |
Cash and cash equivalents at end of period | $ 200,804 | $ 191,407 | $ 161,168 | [1] | |
[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. |
Restatement of Previously Issue
Restatement of Previously Issued Financial Statements (Notes) | 3 Months Ended |
Mar. 29, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | Restatement of Previously Issued Financial Statements Misstatements at the Irapuato Packaging Center In July 2015, in the course of closing its books for the second quarter of 2015, the Company discovered certain accounting irregularities at a contract packaging center in Irapuato, Mexico, part of the Display and Packaging segment. Promptly upon discovery, the Company reported these accounting irregularities to the Audit Committee of the Board of Directors, and a formal investigation into the matter was initiated to determine whether any adjustments would be required with respect to the Company's previously issued financial statements. The Audit Committee retained independent outside legal and accounting advisers to assist with this investigation. Through this investigation, which concluded in August 2015, the irregularities were found to have consisted of a pattern of unsupported journal entries and other actions involving the Irapuato finance, plant, and pack center managers that misstated revenue, cost of sales, trade accounts receivable, other receivables, prepaid expenses, accrued expenses and other, and trade accounts payable for reporting periods dating back to 2011. The misstatements were made to conceal shortfalls in operating profits at the Irapuato packaging center. Neither cash nor previously reported cash flows from operations were affected. The Irapuato finance manager did not fully disclose the extent of his conduct to his managers, and concealed these irregularities from senior management, corporate finance, and our independent registered public accounting firm. The Company determined that revenue and cost of sales had been misstated from 2012 through the first quarter of 2015, resulting in a cumulative overstatement of net income of approximately $23,315 , or $0.23 per diluted common share. Of this overstatement, approximately $2,139 related to the first quarter of 2015, while $10,817 , $9,758 , and $601 related to the years ending December 31, 2014, 2013, and 2012, respectively. The reported balance sheets were also misstated for the annual and interim periods from 2012 through the first quarter of 2015. Other Items In addition to the misstatements related to the Irapuato, Mexico, packaging center, certain out-of-period adjustments were made in 2014 that the Company concluded at the time, based on its evaluation of both quantitative and qualitative factors, were not material to any of its previously issued financial statements. These adjustments included the following: • As disclosed in the Company's Form 10-Q for the three and six-month periods ending June 29, 2014, during the second quarter of 2014 the Company recorded a valuation allowance of $11,516 on deferred tax assets related to the pension plan of a foreign subsidiary. This valuation allowance should have been established in years prior to 2014 when the deferred tax assets were recognized. The error affected comprehensive income, but not net income, from 2010 through the first quarter of 2014. • In December 2014, the valuation of finished goods and work in process inventory in our Flexible Packaging business (part of the Consumer Packaging segment) was found to have been based on incorrect costing standards resulting in the overstatement of finished goods and work in process inventory and a corresponding understatement of cost of sales totaling $1,184 . Pretax operating profits for the segment had been overstated by approximately $924 in 2012 and $260 in 2013. The adjustment resulted in a $770 reduction in the Company's reported net income in 2014. • In December 2014, an out-of-period adjustment was made that reduced both deferred tax expense and deferred tax liabilities in various jurisdictions by a total of $3,202 . Of this adjustment, approximately $639 related to 2013, $491 to 2012, $789 to 2011, $910 to 2010, and $373 to 2009. The Company also identified a classification error in its previously reported condensed consolidated statement of cash flows for the three-month period ended March 29, 2015, in which cash outflows relating to the purchase of long-term investment properties in Venezuela totaling $2,841 were incorrectly reported as operating cash flows instead of an investing activity. Accordingly, an adjustment has been made to the previously reported condensed consolidated financial statements for the three-month period ended March 29, 2015 to increase both net cash provided by operating activities and net cash used in investing activities. Analysis In its assessment of materiality, the Company considered, both individually and in the aggregate, the misstatements at the contract packaging center in Irapuato, Mexico, and the impact of the other items discussed above. Its assessment included an evaluation of the qualitative and quantitative factors relevant to that assessment. Conclusion The Company concluded that the misstatements associated with the Irapuato packaging center warranted restatement of the previously reported financial statements for the years ended December 31, 2014, 2013, and 2012, the interim periods within the year ended December 31, 2014, and for the three-month period ended March 29, 2015. The impact of the accounting irregularities prior to 2012 was not material. The Irapuato packaging center commenced operations in 2010 and those operations were not fully to scale until 2012. The Audit Committee of the Board of Directors analyzed these misstatements, and, after consulting with management, concluded on August 9, 2015, that the financial statements for the years ended December 31, 2012, 2013, and 2014, the interim periods within the year ended December 31, 2014, and for the three-month period ended March 29, 2015, should be restated and should no longer be relied upon. Restatement Details On August 26, 2015, the Company filed an amended Annual Report on Form 10-K/A for the year ended December 31, 2014 in which it restated the previously issued consolidated financial statements for the years ended December 31, 2014, 2013, and 2012, and for the three- and nine-month periods ended September 28, 2014, for the misstatements related to Irapuato. In addition, the previously issued consolidated financial statements were revised to reflect in the proper periods the previously recorded out-of-period adjustments discussed above. Also on August 26, 2015, the Company filed a Quarterly Report on Form 10-Q for the period ended June 28, 2015, in which it provided restated condensed consolidated financial statements for the three- and six-month periods ended June 29, 2014. Restated condensed consolidated financial statements for the three-month periods ended March 29, 2015 and March 30, 2014, along with a reconciliation of the amounts previously reported to the restated amounts, are provided below. CONDENSED CONSOLIDATED BALANCE SHEETS March 29, 2015 as Previously Reported Measurement Period Adjustment (see Note 4) Effect of Restatement March 29, 2015 as Restated Assets Current Assets Cash and cash equivalents $ 200,804 $ — $ — $ 200,804 Trade accounts receivable, net of allowances 688,997 — (3,075 ) 685,922 Other receivables 58,464 — (19,037 ) 39,427 Inventories: Finished and in process 149,123 — — 149,123 Materials and supplies 254,362 — — 254,362 Prepaid expenses 48,576 — 2,521 51,097 Deferred income taxes 25,512 — — 25,512 1,425,838 — (19,591 ) 1,406,247 Property, Plant and Equipment, Net 1,102,481 — — 1,102,481 Goodwill 1,151,170 (4,485 ) — 1,146,685 Other Intangible Assets, Net 261,378 — — 261,378 Long-term Deferred Income Taxes 40,958 — 5,049 46,007 Other Assets 173,332 — — 173,332 Total Assets $ 4,155,157 $ (4,485 ) $ (14,542 ) $ 4,136,130 Liabilities and Equity Current Liabilities Payable to suppliers $ 506,335 $ — $ 8,601 $ 514,936 Accrued expenses and other 290,846 — (1,872 ) 288,974 Notes payable and current portion of long-term debt 51,936 — — 51,936 Accrued taxes 15,432 — (512 ) 14,920 864,549 — 6,217 870,766 Long-term Debt, Net of Current Portion 1,200,509 — — 1,200,509 Pension and Other Postretirement Benefits 436,900 — — 436,900 Deferred Income Taxes 90,008 (4,485 ) — 85,523 Other Liabilities 42,635 — — 42,635 Commitments and Contingencies Sonoco Shareholders’ Equity Common stock, no par value Authorized 300,000 shares outstanding at March 29, 2015 and December 31, 2014, respectively 7,175 — — 7,175 Capital in excess of stated value 398,224 — — 398,224 Accumulated other comprehensive loss (669,325 ) — 2,556 (666,769 ) Retained earnings 1,769,553 — (23,315 ) 1,746,238 Total Sonoco Shareholders’ Equity 1,505,627 — (20,759 ) 1,484,868 Noncontrolling Interests 14,929 — — 14,929 Total Equity 1,520,556 — (20,759 ) 1,499,797 Total Liabilities and Equity $ 4,155,157 $ (4,485 ) $ (14,542 ) $ 4,136,130 CONDENSED CONSOLIDATED STATEMENT OF INCOME Three Months Ended March 29, 2015 Effect of Restatement March 29, 2015 Net sales $ 1,203,264 $ 2,788 $ 1,206,052 Cost of sales 979,817 5,845 985,662 Gross profit 223,447 (3,057 ) 220,390 Selling, general and administrative expenses 96,665 — 96,665 Restructuring/Asset impairment charges (359 ) — (359 ) Income before interest and income taxes 127,141 (3,057 ) 124,084 Interest expense 13,775 — 13,775 Interest income 554 — 554 Income before income taxes 113,920 (3,057 ) 110,863 Provision for income taxes 27,138 (917 ) 26,221 Income before equity in earnings of affiliates 86,782 (2,140 ) 84,642 Equity in earnings of affiliates, net of tax 1,046 — 1,046 Net income $ 87,828 $ (2,140 ) $ 85,688 Net loss attributable to noncontrolling interests 92 — 92 Net income attributable to Sonoco $ 87,920 $ (2,140 ) $ 85,780 Weighted average common shares outstanding: Basic 101,283 — 101,283 Diluted 102,167 — 102,167 Per common share: Net income attributable to Sonoco: Basic $ 0.87 $ (0.02 ) $ 0.85 Diluted $ 0.86 $ (0.02 ) $ 0.84 Cash dividends $ 0.32 $ — $ 0.32 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended March 29, 2015 as Previously Reported Effect of Restatement March 29, 2015 as Restated Net income $ 87,828 $ (2,140 ) $ 85,688 Other comprehensive income/(loss): Foreign currency translation adjustments (63,294 ) 308 (62,986 ) Changes in defined benefit plans, net of tax 6,273 — 6,273 Changes in derivative financial instruments, net of tax (1,205 ) — (1,205 ) Other comprehensive income/(loss) (58,226 ) 308 (57,918 ) Comprehensive income 29,602 (1,832 ) 27,770 Net loss attributable to noncontrolling interests 92 — 92 Other comprehensive loss attributable to noncontrolling interests 631 — 631 Comprehensive income attributable to Sonoco $ 30,325 $ (1,832 ) $ 28,493 CONDENSED CONSOLIDATED STATEMENT OF INCOME Three Months Ended March 30, 2014 as Previously Reported Effect of Restatement March 30, 2014 as Restated Net sales $ 1,185,626 $ 4,406 $ 1,190,032 Cost of sales 973,323 6,948 980,271 Gross profit 212,303 (2,542 ) 209,761 Selling, general and administrative expenses 123,750 — 123,750 Restructuring/Asset impairment charges 1,992 — 1,992 Income before interest and income taxes 86,561 (2,542 ) 84,019 Interest expense 13,284 — 13,284 Interest income 641 — 641 Income before income taxes 73,918 (2,542 ) 71,376 Provision for income taxes 23,169 (658 ) 22,511 Income before equity in earnings of affiliates 50,749 (1,884 ) 48,865 Equity in earnings of affiliates, net of tax 1,476 — 1,476 Net income $ 52,225 $ (1,884 ) $ 50,341 Net loss attributable to noncontrolling interests 77 — 77 Net income attributable to Sonoco $ 52,302 $ (1,884 ) $ 50,418 Weighted average common shares outstanding: Basic 102,771 — 102,771 Diluted 103,767 — 103,767 Per common share: Net income attributable to Sonoco: Basic $ 0.51 $ (0.02 ) $ 0.49 Diluted $ 0.50 $ (0.01 ) $ 0.49 Cash dividends $ 0.31 $ — $ 0.31 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended March 30, 2014 as Previously Reported Effect of Restatement March 30, 2014 as Restated Net income $ 52,225 $ (1,884 ) $ 50,341 Other comprehensive income/(loss): Foreign currency translation adjustments (7,359 ) 23 (7,336 ) Changes in defined benefit plans, net of tax 4,174 — 4,174 Changes in derivative financial instruments, net of tax 236 — 236 Other comprehensive income/(loss) (2,949 ) 23 (2,926 ) Comprehensive income 49,276 (1,861 ) 47,415 Net loss attributable to noncontrolling interests 77 — 77 Other comprehensive loss attributable to noncontrolling interests 119 — 119 Comprehensive income attributable to Sonoco $ 49,472 $ (1,861 ) $ 47,611 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Three Months Ended March 29, 2015 as Previously Reported Effect of Restatement March 29, 2015 as Restated Cash Flows from Operating Activities: Net income $ 87,828 $ (2,140 ) $ 85,688 Adjustments to reconcile net income to net cash provided by operating activities: Asset impairment 275 — 275 Depreciation, depletion and amortization 51,877 — 51,877 Gain on reversal of Fox River environmental reserves (32,543 ) — (32,543 ) Share-based compensation expense 3,878 — 3,878 Equity in earnings of affiliates (1,046 ) — (1,046 ) Cash dividends from affiliated companies 450 — 450 Gain on disposition of assets (8,369 ) — (8,369 ) Pension and postretirement plan expense 13,012 — 13,012 Pension and postretirement plan contributions (17,017 ) — (17,017 ) Tax effect of share-based compensation exercises 3,404 — 3,404 Excess tax benefit of share-based compensation (3,400 ) — (3,400 ) Net increase in deferred taxes 4,140 (735 ) 3,405 Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: Trade accounts receivable (37,038 ) (11,898 ) (48,936 ) Inventories (6,066 ) — (6,066 ) Payable to suppliers 4,091 3,003 7,094 Prepaid expenses (1,147 ) 1,677 530 Accrued expenses (986 ) (3,050 ) (4,036 ) Income taxes payable and other income tax items 15,365 (64 ) 15,301 Other assets and liabilities (19,219 ) 16,048 (3,171 ) Net cash provided by operating activities 57,489 2,841 60,330 Cash Flows from Investing Activities: Purchase of property, plant and equipment (40,954 ) — (40,954 ) Proceeds from the sale of assets 30,708 — 30,708 Investment in affiliates and other, net 33 (2,841 ) (2,808 ) Net cash used in investing activities (10,213 ) (2,841 ) (13,054 ) Cash Flows from Financing Activities: Proceeds from issuance of debt 14,127 — 14,127 Principal repayment of debt (12,802 ) — (12,802 ) Net decrease in outstanding checks 8,752 — 8,752 Excess tax benefit of share-based compensation 3,400 — 3,400 Cash dividends (32,263 ) — (32,263 ) Shares acquired (7,591 ) — (7,591 ) Shares issued 1,165 — 1,165 Net cash used in financing activities (25,212 ) — (25,212 ) Effects of Exchange Rate Changes on Cash 17,572 — 17,572 Net Increase in Cash and Cash Equivalents 39,636 — 39,636 Cash and cash equivalents at beginning of period 161,168 — 161,168 Cash and cash equivalents at end of period $ 200,804 $ — $ 200,804 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Three Months Ended March 30, 2014 as Previously Reported Effect of Restatement March 30, 2014 as Restated Cash Flows from Operating Activities: Net income $ 52,225 $ (1,884 ) $ 50,341 Adjustments to reconcile net income to net cash provided by operating activities: Asset impairment 492 — 492 Depreciation, depletion and amortization 47,179 — 47,179 Gain on reversal of Fox River environmental reserves — — — Share-based compensation expense 5,560 — 5,560 Equity in earnings of affiliates (1,476 ) — (1,476 ) Cash dividends from affiliated companies 900 — 900 Gain on disposition of assets (872 ) — (872 ) Pension and postretirement plan expense 9,113 — 9,113 Pension and postretirement plan contributions (43,515 ) — (43,515 ) Tax effect of share-based compensation exercises 1,664 — 1,664 Excess tax benefit of share-based compensation (1,758 ) — (1,758 ) Net change in deferred taxes 2,388 (319 ) 2,069 Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: Trade accounts receivable (68,142 ) — (68,142 ) Inventories (3,185 ) — (3,185 ) Payable to suppliers 12,722 (1,409 ) 11,313 Prepaid expenses (1,348 ) 4 (1,344 ) Accrued expenses 5,509 898 6,407 Income taxes payable and other income tax items 25,388 (334 ) 25,054 Other assets and liabilities 2,620 3,044 5,664 Net cash provided by operating activities 45,464 — 45,464 Cash Flows from Investing Activities: Purchase of property, plant and equipment (37,717 ) — (37,717 ) Proceeds from the sale of assets 2,299 — 2,299 Investment in affiliates and other, net 22 — 22 Net cash used in investing activities (35,396 ) — (35,396 ) Cash Flows from Financing Activities: Proceeds from issuance of debt 14,156 — 14,156 Principal repayment of debt (10,461 ) — (10,461 ) Net decrease in outstanding checks 182 — 182 Excess tax benefit of share-based compensation 1,758 — 1,758 Cash dividends (31,725 ) — (31,725 ) Shares acquired (10,678 ) — (10,678 ) Shares issued 1,867 — 1,867 Net cash used in financing activities (34,901 ) — (34,901 ) Effects of Exchange Rate Changes on Cash (1,327 ) — (1,327 ) Net Decrease in Cash and Cash Equivalents (26,160 ) — (26,160 ) Cash and cash equivalents at beginning of period 217,567 — 217,567 Cash and cash equivalents at end of period $ 191,407 $ — $ 191,407 |
Basis of Interim Presentation
Basis of Interim Presentation | 3 Months Ended |
Mar. 29, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Interim Presentation | Basis of Interim Presentation In the opinion of the management of Sonoco Products Company (the “Company” or “Sonoco”), the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments, unless otherwise stated) necessary to state fairly the consolidated financial position, results of operations and cash flows for the interim periods reported herein. Operating results for the three months ended March 29, 2015 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s amended Annual Report on Form 10-K/A for the fiscal year ended December 31, 2014 . With respect to the unaudited condensed consolidated financial information of the Company for the three-month periods ended March 29, 2015 and March 30, 2014 included in this amended Quarterly Report on Form 10-Q/A, PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report appearing herein, states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP is not subject to the liability provisions of Section 11 of the Securities Act of 1933 for their report on the unaudited financial information because that report is not a “report” or a “part” of a registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the Act. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 29, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (FASB) issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, and not recorded as separate assets. This update is effective for reporting periods beginning after December 15, 2015, and is to be applied on a retrospective basis. The Company plans to adopt ASU 2015-03 in the first quarter of 2016. As the Company's debt issuance costs are not material, implementation of this update will not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue From Contracts With Customers." ASU 2014-09 changes the definitions/criteria used to determine when revenue should be recognized from being based on risks and rewards to being based on control. It also changes the manner in which variable consideration is recognized, requires recognition of the time value of money when payment terms exceed one year, provides clarification on accounting for contract costs, and expands disclosure requirements. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016. The Company is still assessing the impact of ASU 2014-09 on its consolidated financial statements. During the three -month period ended March 29, 2015 , there have been no other newly issued nor newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at March 29, 2015 , there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 29, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On April 1, 2015, subsequent to the end of the quarter, the Company acquired a 67% controlling interest in Graffo Paranaense de Embalagens S/A ("Graffo"), a flexible packaging business located in Brazil, for an all-cash purchase price of 50.5 million Brazilian Reals (approximately $15,600 ), Graffo serves the confectionery, dairy, pharmaceutical and industrial markets in Brazil and has approximately 230 employees. The allocation of the purchase price to the fair values of the tangible and intangible assets acquired and liabilities assumed will be completed as the valuations are finalized later in the second quarter of 2015. On October 31, 2014, the Company completed the acquisition of Weidenhammer Packaging Group (“Weidenhammer”), a manufacturer of composite cans, drums, and luxury tubes, as well as rigid plastic containers using thin-walled injection molding technology with in-mold labeling. Total consideration paid for Weidenhammer was $355,316 , subject to adjustment for the change in working capital to the date of close. The amount of the adjustment is expected to be finalized in the third quarter of 2015. As the acquisition was completed near the end of the year, the allocation of the purchase price reported in the Company's amended Annual Report on Form 10-K/A for the fiscal year ended December 31, 2014, was based on provisional estimates of the fair value of the tangible and intangible assets acquired and liabilities assumed. Subsequent to December 31, 2014, the Company finalized its valuations of most of the acquired assets and liabilities based on information obtained about facts and circumstances that existed as of the acquisition date. As a result, adjustments were made to the provisional fair values that reduced previously reported long-term deferred income tax liabilities and goodwill by $4,974 and $4,485 at December 31, 2014 and March 29, 2015, respectively. The amounts shown in the accompanying Condensed Consolidated Balance Sheets have been adjusted to reflect these changes. The Company is finalizing the assessment of the valuation of certain assets and liabilities, including, but not limited to, income taxes and environmental reserves, and expects the valuation to be completed by the end of the third quarter of 2015. Acquisition-related costs of $1,166 and $24 were incurred in the three months ended March 29, 2015 and March 30, 2014 , respectively. Acquisition-related costs consist primarily of legal and professional fees and are included in "Selling, general and administrative expenses" in the Company's Condensed Consolidated Statements of Income. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 29, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Earnings per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended March 29, March 30, (as Restated) (as Restated) Numerator: Net income attributable to Sonoco $ 85,780 $ 50,418 Denominator: Weighted average common shares outstanding: Basic 101,283,000 102,771,000 Dilutive effect of stock-based compensation 884,000 996,000 Diluted 102,167,000 103,767,000 Reported net income attributable to Sonoco per common share: Basic $ 0.85 $ 0.49 Diluted $ 0.84 $ 0.49 Certain stock appreciation rights to purchase shares of the Company's common stock are not dilutive because the exercise price is greater than the market price of the stock at the end of the reporting period. The average number of stock appreciation rights that were not dilutive and therefore not included in the computation of diluted earnings per share was 395,883 and 643,827 during the three -month periods ended March 29, 2015 and March 30, 2014 , respectively. No adjustments were made to reported net income attributable to Sonoco in the computations of earnings per share. Stock Repurchases The Company’s Board of Directors has authorized the repurchase of up to 5,000,000 shares of the Company’s common stock. A total of 2,000,000 and 132,500 shares were repurchased under this authorization in 2014 and 2013, respectively. During the three months ended March 29, 2015 , no additional shares were purchased; accordingly, at March 29, 2015 , a total of 2,867,500 shares remain available for repurchase. 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 166,485 shares in the three months ended March 29, 2015 at a cost of $7,591 , and 48,581 shares in the three months ended March 30, 2014 at a cost of $2,043 . Dividend Declarations On February 11, 2015 , the Board of Directors declared a regular quarterly dividend of $0.32 per share. This dividend was paid on March 10, 2015 to all shareholders of record as of February 25, 2015 . On April 15, 2015 , the Board of Directors declared a regular quarterly dividend of $0.35 per share. This dividend is payable June 10, 2015 to all shareholders of record as of May 15, 2015 . |
Restructuring and Asset Impairm
Restructuring and Asset Impairment | 3 Months Ended |
Mar. 29, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment | Restructuring and Asset Impairment The Company has engaged in a number of restructuring actions over the past several years. Actions initiated in 2015 and 2014 are reported as “2015 Actions” and “2014 Actions,” respectively. Actions initiated prior to 2014, all of which were substantially complete at March 29, 2015 , are reported as “2013 and Earlier Actions.” Following are the total restructuring and asset impairment charges/(credits), net of adjustments, and gains on dispositions recognized by the Company during the periods presented: March 29, 2015 March 30, 2014 Restructuring/Asset impairment: 2015 Actions $ (851 ) $ — 2014 Actions 342 1,399 2013 and Earlier Actions 150 593 Restructuring/Asset impairment (income)/charges $ (359 ) $ 1,992 Income tax benefit $ (11,591 ) $ (411 ) Costs attributable to noncontrolling interests, net of tax (15 ) (4 ) Total impact of restructuring/asset impairment (income)/charges, net of tax $ (11,965 ) $ 1,577 Pre-tax restructuring and asset impairment charges are included in “Restructuring/Asset impairment charges” in the Condensed Consolidated Statements of Income. The Company expects to recognize future additional charges totaling approximately $3,100 in connection with announced restructuring actions, when recognizable in accordance with GAAP, and believes that the majority of these charges will be incurred and paid by the end of 2015. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions may be undertaken. 2015 Actions During 2015, the Company announced the closure of a rigid paper facility in the United States (part of the Consumer Packaging segment). The Company also sold a portion of its metal ends and closures business in the United States (part of the Consumer Packaging segment). In addition, approximately 102 positions were eliminated in the first quarter of 2015 in conjunction with the Company's announced o rganizational effectiveness efforts, which are on-going. Below is a summary of 2015 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2015 Actions First Quarter 2015 Estimated Severance and Termination Benefits Consumer Packaging $ 2,201 $ 4,101 Paper and Industrial Converted Products 3,028 3,028 Corporate 1,166 1,616 Asset Impairment / Disposal of Assets Consumer Packaging (7,331 ) (7,331 ) Paper and Industrial Converted Products 2 2 Other Costs Consumer Packaging 75 175 Paper and Industrial Converted Products 8 8 Total Charges and Adjustments $ (851 ) $ 1,599 The followi ng table sets forth the activity in the 2015 Ac tions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: 2015 Actions Severance Termination Asset Impairment/ Disposal Other Costs Total Accrual Activity Liability at December 31, 2014 $ — $ — $ — $ — 2015 charges 6,395 (7,329 ) 83 (851 ) Cash receipts/(payments) (2,079 ) 29,128 (83 ) 26,966 Asset write downs/disposals — (21,799 ) — (21,799 ) Foreign currency translation (78 ) — — (78 ) Liability at March 29, 2015 $ 4,238 $ — $ — $ 4,238 Included in "Asset Impairment/Disposal of Assets" above is a gain of $7,331 from the sale of a portion of the Company's metal ends and closures business, including two production facilities in Canton, Ohio. The Company received proceeds of $29,128 from the sale of this business. Assets disposed of in connection with the sale included: net fixed assets of $9,806 , inventory of $7,051 , goodwill of $1,727 , and other intangible assets of $3,516 . Liabilities of $303 were assumed by the buyer and disposed of under the terms of the sale. Beneficial tax attributes associated with this disposition provided an income tax benefit of approximately $9,200 . "Other costs" consist primarily of costs related to plant closures including equipment removal, utilities, plant security, property taxes and insurance. The Company expects to pay the majority of the remaining 2015 Actions restructuring costs by the end of 2015 using cash generated from operations. 2014 Actions During 2014, the Company announced the closures of a tube and core plant in Canada (part of the Paper and Industrial Converted Products segment); a molded foam plant in the United States and a temperature-assured packaging plant in the United States (both part of the Protective Solutions segment); and two recycling facilities - one in the United States and one in Brazil (both part of the Paper and Industrial Converted Products segment). The Consumer Packaging segment also realized significant cash and non-cash restructuring charges as the result of halting the planned start up of a rigid paper facility in Europe following the acquisition of Weidenhammer Packaging Group. In addition, the Company continued to realign its cost structure, resulting in the elimination of approximately 125 positions. Below is a summary of 2014 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2014 Actions First Quarter 2015 First Quarter 2014 Total Incurred Estimated Severance and Termination Benefits Consumer Packaging $ — $ 650 $ 850 $ 850 Display and Packaging — — 594 594 Paper and Industrial Converted Products 99 265 3,376 3,376 Protective Solutions (32 ) — 729 729 Asset Impairment / Disposal of Assets Consumer Packaging — — 2,446 2,446 Paper and Industrial Converted Products — 473 781 781 Protective Solutions 33 — 368 368 Other Costs Consumer Packaging 32 11 5,278 5,328 Display and Packaging — — 5 5 Paper and Industrial Converted Products 115 — 762 812 Protective Solutions 95 — 432 532 Total Charges and Adjustments $ 342 $ 1,399 $ 15,621 $ 15,821 The following table sets forth the activity in the 2014 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: 2014 Actions Severance Asset Other Total Accrual Activity 2015 Year to Date Liability at December 31, 2014 $ 859 $ — $ 463 $ 1,322 2015 charges 111 33 293 437 Adjustments (44 ) — (51 ) (95 ) Cash receipts/(payments) (451 ) — (690 ) (1,141 ) Asset write downs/disposals — (33 ) — (33 ) Foreign currency translation (11 ) — (15 ) (26 ) Liability at March 29, 2015 $ 464 $ — $ — $ 464 Included in "Asset Impairment/Disposal of Assets" above is impairment of a former temperature-assured packaging facility in the United States. “Other costs” consist primarily of costs related to plant closures including equipment removal, utilities, plant security, property taxes and insurance. The Company expects to pay the majority of the remaining 2014 Actions restructuring costs by the end of 2015 using cash generated from operations. 2013 and Earlier Actions 2013 and Earlier Actions are comprised of a number of plant closures and workforce reductions initiated prior to 2014. Charges for these actions in both 2015 and 2014 relate primarily to the cost of plant closures including severance, equipment removal, plant security, property taxes and insurance. Partially offsetting these charges were gains from the sale of a former service center in Finland, closed in 2011. The Company expects to recognize future pretax charges of approximately $450 associated with 2013 and Earlier Actions. Below is a summary of expenses/(income) incurred by segment for 2013 and Earlier Actions for the three -month periods ended March 29, 2015 and March 30, 2014 . 2013 & Earlier Actions First Quarter 2015 First Quarter 2014 Consumer Packaging $ — $ (1 ) Display and Packaging — 247 Paper and Industrial Converted Products 150 296 Protective Solutions — 51 Total Charges and Adjustments $ 150 $ 593 The accrual for 2013 and Earlier Actions totaled $1,542 and $1,990 at March 29, 2015 and December 31, 2014 , respectively, and is included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets. The accrual relates primarily to environmental remediation costs at a former paper mill in the United States and unpaid severance. The Company expects the majority of both the liability and the future costs associated with 2013 and Earlier Actions to be paid by the end of 2015 using cash generated from operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 29, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the three months ended March 29, 2015 and March 30, 2014 : Gains and Losses on Cash Flow Hedges Defined Benefit Pension Items (as Restated) Foreign Currency Items (as Restated) Accumulated Other Comprehensive Loss (as Restated) Balance at December 31, 2014 $ (5,962 ) $ (475,286 ) $ (127,603 ) $ (608,851 ) Other comprehensive income/(loss) before reclassifications (1,039 ) — (62,986 ) (64,025 ) Amounts reclassified from accumulated other comprehensive loss to net income 71 6,273 — 6,344 Amounts reclassified from accumulated other comprehensive loss to fixed assets (237 ) — — (237 ) Net current-period other comprehensive income/(loss) (1,205 ) 6,273 (62,986 ) (57,918 ) Balance at March 29, 2015 $ (7,167 ) $ (469,013 ) $ (190,589 ) $ (666,769 ) Balance at December 31, 2013 $ (262 ) $ (344,622 ) $ (24,985 ) $ (369,869 ) Other comprehensive income/(loss) before reclassifications 1,350 — (7,336 ) (5,986 ) Amounts reclassified from accumulated other comprehensive loss to net income (1,125 ) 4,174 — 3,049 Amounts reclassified from accumulated other comprehensive loss to fixed assets 11 — — 11 Net current-period other comprehensive 236 4,174 (7,336 ) (2,926 ) Balance at March 30, 2014 $ (26 ) $ (340,448 ) $ (32,321 ) $ (372,795 ) The following table summarizes the effects on net income of significant amounts classified out of each component of accumulated other comprehensive loss for the three months ended March 29, 2015 and March 30, 2014 : Amount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Details about Accumulated Other Comprehensive Loss Components March 29, March 30, Affected Line Item in the Condensed Consolidated Statements of Net Income Gains and losses on cash flow hedges Foreign exchange contracts $ 1,302 $ (999 ) Net sales Foreign exchange contracts 1,024 1,862 Cost of sales Commodity contracts (2,423 ) 717 Cost of sales (97 ) 1,580 Total before tax 26 (455 ) Tax (provision)/benefit $ (71 ) $ 1,125 Net of tax Defined benefit pension items Amortization of defined benefit pension items (a) $ (7,445 ) $ (4,667 ) Cost of sales Amortization of defined benefit pension items (a) (2,481 ) (1,556 ) Selling, general and (9,926 ) (6,223 ) Total before tax 3,653 2,049 Tax benefit $ (6,273 ) $ (4,174 ) Net of tax Total reclassifications for the period $ (6,344 ) $ (3,049 ) Net of tax (a) See Note 10 for additional details. At March 29, 2015 , the Company had commodity contracts outstanding to fix the costs of certain anticipated purchases of natural gas and aluminum, and foreign currency contracts to hedge certain anticipated foreign currency denominated sales and purchases. The amounts included in accumulated other comprehensive loss related to these cash flow hedges were net losses of $11,721 ( $7,167 after tax) at March 29, 2015 , and losses of $9,617 ( $5,962 after tax) at December 31, 2014 . The cumulative tax benefit on Cash Flow Hedges included in Accumulated Other Comprehensive Loss was $4,554 at March 29, 2015 , and $3,655 at December 31, 2014 . During the three month period ended March 29, 2015 , the tax benefit on Cash Flow Hedges changed by $899 . The cumulative tax benefit on Defined Benefit Pension Items was $253,187 at March 29, 2015 , and $256,840 at December 31, 2014 . During the three month period ended March 29, 2015 , the tax benefit on Defined Benefit Pension Items decreased by $(3,653) . During the three month period ended March 29, 2015 , changes in noncontrolling interests included foreign currency translation adjustments of $(631) . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 29, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill A summary of the changes in goodwill by segment for the three months ended March 29, 2015 is as follows: Consumer Packaging Display and Packaging Paper and Industrial Converted Products Protective Solutions Total Goodwill at December 31, 2014 $ 508,582 $ 204,629 $ 243,586 $ 221,165 $ 1,177,962 Dispositions (1,727 ) — — — (1,727 ) Foreign currency translation (18,637 ) — (10,913 ) — (29,550 ) Other — — — — — Goodwill at March 29, 2015 $ 488,218 $ 204,629 $ 232,673 $ 221,165 $ 1,146,685 The Company disposed of goodwill totaling $(1,727) in connection with the sale of a portion of the Company's metal ends and closures business, including two production facilities in Canton, Ohio. See Note 6 for additional information. The Weidenhammer goodwill reflects post-acquisition measurement period adjustments as discussed in Note 4. The Company assesses goodwill for impairment annually and from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. As part of this testing, the Company analyzes certain qualitative and quantitative factors in determining goodwill impairment. In its most recent assessment, completed in the third quarter of 2014, the Company concluded that there was no impairment of goodwill for any of its reporting units. The assessment reflected a number of significant management assumptions and estimates including the Company's forecast of sales volumes and prices, profit margins, income taxes, capital expenditures and changes in working capital requirements. Changes in these assumptions and/or discount rates could materially impact the Company's conclusions. Although no reporting units failed the assessments noted above, in management’s opinion, the reporting units having the greatest risk of future impairment if actual results fall significantly short of expectations are Plastics – Blowmolding, Display and Packaging, and Tubes and Cores/Paper - Brazil. Total goodwill associated with these reporting units was approximately $119,000 , $204,600 , and $2,800 , respectively, at March 29, 2015 . A large portion of sales in the Display and Packaging reporting unit is concentrated in one customer. Management expects to retain this business; however, if a significant amount were lost and not replaced, it is possible that a goodwill impairment charge would be incurred. The restatement of historical financial results for the Company's Display and Packaging business discussed in Note 1 was considered a triggering event resulting in a reassessment of the most recent annual impairment test for the Display and Packaging reporting unit completed in the third quarter of 2014. Accordingly, the Company reperformed the impairment analysis taking into consideration the restated financial data and concluded that goodwill in the Display and Packaging reporting unit was not impaired. There have been no other triggering events identified between the most recent annual impairment test and March 29, 2015 . Other Intangible Assets A summary of other intangible assets as of March 29, 2015 and December 31, 2014 is as follows: March 29, December 31, Other Intangible Assets, gross Patents $ 12,721 $ 13,883 Customer lists 372,633 385,466 Trade names 19,246 19,366 Proprietary technology 17,739 17,786 Land use rights 314 320 Other 1,281 1,309 Other Intangible Assets, gross $ 423,934 $ 438,130 Accumulated Amortization $ (162,556 ) $ (157,195 ) Other Intangible Assets, net $ 261,378 $ 280,935 Other intangible assets are amortized on a straight-line basis over their respective useful lives, which generally range from three to forty years. The Company has no intangibles with indefinite lives. During the first quarter of 2015, the Company disposed of customer lists totaling $3,516 in connection with the sale of a portion of the Company's metal ends and closures business, including two production facilities in Canton, Ohio. See Note 6 for additional information. Aggregate amortization expense was $8,150 and $6,863 for the three months ended March 29, 2015 and March 30, 2014 , respectively. Amortization expense on other intangible assets is expected to total approximately $33,900 in 2015, $32,600 in 2016, $31,900 in 2017, $31,300 in 2018 and $29,500 in 2019. |
Financial Instruments and Deriv
Financial Instruments and Derivatives | 3 Months Ended |
Mar. 29, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Derivatives | Financial Instruments and Derivatives The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value. March 29, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, net of current portion $ 1,200,509 $ 1,338,655 $ 1,200,885 $ 1,322,795 The carrying value of cash and cash equivalents, short-term debt and long-term variable-rate debt approximates fair value. The fair value of long-term debt is determined based on recent trade information in the financial markets of the Company’s public debt or is determined by discounting future cash flows using interest rates available to the Company for issues with similar terms and maturities. It is considered a Level 2 fair value measurement. Cash Flow Hedges At March 29, 2015 and December 31, 2014 , 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 from April 2015 to March 2016, qualify as cash flow hedges under U.S. GAAP. To the extent considered effective, the changes in fair value of these contracts are recorded in other comprehensive income and reclassified to income or expense in the period in which the hedged item impacts earnings. The Company has determined all hedges to be highly effective and as a result no material ineffectiveness has been recorded. Commodity Cash Flow Hedges The Company has entered into certain derivative contracts to manage the cost of anticipated purchases of natural gas and aluminum. At March 29, 2015 , natural gas swaps covering approximately 4.2 MMBTUs were outstanding. These contracts represent approximately 85% and 5% of anticipated U.S. and Canadian usage for the remainder of 2015 and 2016, respectively. Additionally, the Company had swap contracts covering 2,759 metric tons of aluminum and 4,620 short tons of OCC, representing approximately 41% and 1% of anticipated usage for the remainder of 2015, respectively. Also at March 29, 2015 , the Company had a swap covering 360,000 gallons of benzene serving as a proxy hedge for the purchase of high impact polystyrene. This swap represents approximately 11% of anticipated purchases in 2015. The fair values of the Company’s commodity cash flow hedges netted to loss positions of $(5,813) and $(6,086) at March 29, 2015 and December 31, 2014 , respectively. The amount of the loss included in Accumulated Other Comprehensive Loss at March 29, 2015 , that is expected to be reclassified to the income statement during the next twelve months is $(5,655) . Foreign Currency Cash Flow Hedges The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales and purchases forecast to occur in 2015. The net positions of these contracts at March 29, 2015 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 13,112,256 Mexican peso purchase 287,704 Canadian dollar purchase 45,175 Russian ruble purchase 30,183 Turkish lira purchase 5,262 Polish zloty purchase 874 British pound sell (769 ) New Zealand dollar sell (2,499 ) Euro sell (2,783 ) Australian dollar sell (5,141 ) The fair value of these foreign currency cash flow hedges netted to loss positions of $(5,944) and $(3,526) at March 29, 2015 and December 31, 2014 , respectively. During the three months ended March 29, 2015 , certain foreign currency cash flow hedges related to construction in progress were settled as the related capital expenditures were made. Losses from these hedges totaling $(237) were reclassified from accumulated other comprehensive loss and included in the carrying value of the assets acquired. During the next twelve months, a loss of $(5,724) is expected to be reclassified from Accumulated Other Comprehensive Loss to the income statement. Other Derivatives The Company routinely enters into forward contracts or swaps to economically hedge the currency exposure of intercompany debt and existing foreign currency denominated receivables and payables. The Company does not apply hedge accounting treatment under ASC 815 for these instruments. As such, changes in fair value are recorded directly to income and expense in the periods that they occur. The net positions of these contracts at March 29, 2015 , were as follows (in thousands): Currency Action Quantity Colombian peso purchase 28,330,708 Mexican peso purchase 193,849 Canadian dollar purchase 12,483 Euro purchase 6,847 British pound sell (5,000 ) The fair value of the Company’s other derivatives was $(1,135) and $(1,098) at March 29, 2015 and December 31, 2014 , respectively. The following table sets forth the location and fair values of the Company’s derivative instruments at March 29, 2015 and December 31, 2014 : Description Balance Sheet Location March 29, December 31, Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ — $ — Commodity Contracts Other assets $ — $ — Commodity Contracts Accrued expenses and other $ (5,698 ) $ (5,808 ) Commodity Contracts Other liabilities $ (115 ) $ (278 ) Foreign Exchange Contracts Prepaid expenses $ 1,179 $ 574 Foreign Exchange Contracts Accrued expenses and other $ (7,123 ) $ (4,100 ) Derivatives not designated as hedging instruments: Foreign Exchange Contracts Prepaid expenses $ 92 $ 68 Foreign Exchange Contracts Accrued expenses and other $ (1,227 ) $ (1,166 ) 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. Location of Gain or (Loss) Recognized in Income Statement The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three months ended March 29, 2015 and March 30, 2014 : Description Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) Derivatives in Cash Flow Hedging Relationships: Three months ended March 29, 2015 Foreign Exchange Contracts $ 146 Net sales $ 1,302 Net sales $ — Cost of sales $ 1,024 Commodity Contracts $ (2,110 ) Cost of sales $ (2,423 ) Cost of sales $ 40 Three months ended March 30, 2014 Foreign Exchange Contracts $ (776 ) Net sales $ (999 ) Net sales $ — Cost of sales $ 1,862 Commodity Contracts $ 2,676 Cost of sales $ 717 Cost of sales $ (20 ) Description Location of Gain or (Loss) Recognized in Income Statement Gain or (Loss) Recognized Derivatives not Designated as Hedging Instruments: Three months ended March 29, 2015 Foreign Exchange Contracts Cost of sales $ (45 ) Selling, general and administrative $ 8 Three months ended March 30, 2014 Foreign Exchange Contracts Cost of sales $ 37 Selling, general and administrative $ 56 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 29, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: Level 1 – Observable inputs such as quoted market prices in active markets; Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3 – Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. The following table sets forth information regarding the Company’s financial assets and financial liabilities, excluding retirement and postretirement plan assets, measured at fair value on a recurring basis: Description March 29, Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (5,813 ) $ — $ (5,813 ) $ — Foreign exchange contracts (5,944 ) — (5,944 ) — Non-hedge derivatives, net: Foreign exchange contracts (1,135 ) — (1,135 ) — Deferred compensation plan assets 951 951 — — Description December 31, Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (6,086 ) $ — $ (6,086 ) $ — Foreign exchange contracts (3,526 ) — (3,526 ) — Non-hedge derivatives, net: Foreign exchange contracts (1,098 ) — (1,098 ) — Deferred compensation plan assets 944 944 — — As discussed in Note 9, the Company uses derivatives to mitigate the effect of raw material and energy cost fluctuations, foreign currency fluctuations and, from time to time, interest rate movements. Fair value measurements for the Company’s derivatives are classified under Level 2 because such measurements are estimated based on observable inputs such as interest rates, yield curves, spot and future commodity prices and spot and future exchange rates. Certain deferred compensation plan liabilities are funded by assets invested in various exchange traded mutual funds. These assets are measured using quoted prices in accessible active markets for identical assets. The Company does not currently have any nonfinancial assets or liabilities that are recognized or disclosed at fair value on a recurring basis. None of the Company’s financial assets or liabilities is 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 March 29, 2015 . |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 29, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Retirement Plans and Retiree Health and Life Insurance Plans The Company provides non-contributory defined benefit pension plans for a majority of its employees in the United States and certain of its employees in Mexico and Belgium. Effective December 31, 2003, the Company froze participation for newly hired salaried and non-union hourly U.S. employees in its qualified defined benefit pension plan. At that time, the Company adopted a defined contribution plan, the Sonoco Investment and Retirement Plan (SIRP), which covers its non-union U.S. employees hired on or after January 1, 2004. The Company also sponsors contributory defined benefit pension plans covering the majority of its employees in the United Kingdom, Canada, and the Netherlands. On February 4, 2009, the U.S. qualified defined benefit pension plan was amended to freeze plan benefits for all active participants effective December 31, 2018. Remaining active participants in the U.S. qualified plan will become participants of the SIRP effective January 1, 2019. The Company also 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 components of net periodic benefit cost include the following: Three Months Ended March 29, March 30, Retirement Plans Service cost $ 5,253 $ 5,167 Interest cost 16,933 17,897 Expected return on plan assets (22,726 ) (22,753 ) Amortization of net transition obligation 40 99 Amortization of prior service cost 180 163 Amortization of net actuarial loss 9,728 6,302 Net periodic benefit cost $ 9,408 $ 6,875 Retiree Health and Life Insurance Plans Service cost $ 178 $ 173 Interest cost 222 257 Expected return on plan assets (393 ) (387 ) Amortization of prior service credit (25 ) (337 ) Amortization of net actuarial loss (5 ) (24 ) Net periodic benefit income $ (23 ) $ (318 ) The Company made aggregate contributions of $4,152 and $31,466 to its defined benefit retirement and retiree health and life insurance plans during the three months ended March 29, 2015 and March 30, 2014 , respectively. The Company anticipates that it will make additional aggregate contributions of approximately $19,000 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2015. Sonoco Investment and Retirement Plan (SIRP) The Company recognized SIRP expense totaling $3,627 and $2,556 for the quarters ended March 29, 2015 and March 30, 2014 , respectively. Contributions to the SIRP, funded annually in the first quarter, totaled $12,865 during the three months ended March 29, 2015 , and $9,290 during the three months ended March 30, 2014 . No additional SIRP contributions are expected during the remainder of 2015. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 29, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the three month periods ending March 29, 2015 and March 30, 2014 , was 23.7% and 31.5% , respectively. The rates for both periods were favorable to the U.S. statutory rate due to the effect of certain international operations that are subject to tax rates lower than the U.S. rate and the favorable effect of the manufacturer’s deduction on U.S. taxes. The effective tax rate for the three month period ended March 29, 2015 was further reduced by the recognition of beneficial tax attributes associated with the disposition of the Company's Canton, Ohio metal ends and closures facilities. The Company and/or its subsidiaries file federal, state and local income tax returns in the United States and various foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, or non-U.S., income tax examinations by tax authorities for years before 2011. With respect to state and local income taxes, the Company is no longer subject to examination for years prior to 2010, with few exceptions. The Company’s total liability for uncertain tax benefits has not changed significantly since December 31, 2014 . The Company has $2,300 of reserves for uncertain tax benefits for which it believes it is reasonably possible that a resolution may be reached within the next twelve months. The Company’s estimate for the potential outcome for any uncertain tax issue is highly judgmental. Management believes that any reasonably foreseeable outcomes related to these matters have been adequately provided for. However, future results may include favorable or unfavorable adjustments to estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. Additionally, the jurisdictions in which earnings or deductions are realized may differ from current estimates. As a result, the Company’s effective tax rate may fluctuate significantly on a quarterly basis. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 29, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company reports its financial results in four reportable segments: Consumer Packaging, Display and Packaging, Paper and Industrial Converted Products, and Protective Solutions. The Consumer Packaging segment includes the following products and services: round and shaped rigid containers and trays (both composite and thermoformed plastic); blow-molded plastic bottles and jars; extruded and injection-molded plastic products; printed flexible packaging; global brand artwork management; and metal and peelable membrane ends and closures. The Display and Packaging segment includes the following products and services: designing, manufacturing, assembling, packing and distributing temporary, semipermanent and permanent point-of-purchase displays; supply chain management services, including contract packing, fulfillment and scalable service centers; retail packaging, including printed backer cards, thermoformed blisters and heat sealing equipment; and paper amenities, such as coasters and glass covers. The Paper and Industrial Converted Products segment includes the following products: paperboard tubes and cores; fiber-based construction tubes and forms; wooden, metal and composite wire and cable reels and spools; and recycled paperboard, linerboard, corrugating medium, recovered paper and material recycling services. The Protective Solutions segment includes the following products: custom-engineered, paperboard-based and expanded foam protective packaging and components; and temperature-assured packaging. The following table sets forth net sales, intersegment sales and operating profit for the Company’s reportable segments. “Segment operating profit” is defined as the segment’s portion of “Income before interest and income taxes” excluding restructuring charges, asset impairment charges, acquisition-related costs, and certain other items, if any, the exclusion of which the Company believes improves comparability and analysis of the financial performance of the business. General corporate expenses have been allocated as operating costs to each of the Company’s reportable segments. "Other, net" for the three months ended March 29, 2015, is largely composed of a $32,543 reversal of environmental liability reserves related to Fox River. SEGMENT FINANCIAL INFORMATION Three Months Ended March 29, March 30, (as Restated) (as Restated) Net sales: Consumer Packaging $ 519,877 $ 464,925 Display and Packaging 145,786 157,428 Paper and Industrial Converted Products 422,311 455,610 Protective Solutions 118,078 112,069 Consolidated $ 1,206,052 $ 1,190,032 Intersegment sales: Consumer Packaging $ 1,680 $ 1,033 Display and Packaging 397 383 Paper and Industrial Converted Products 27,551 26,345 Protective Solutions 608 566 Consolidated $ 30,236 $ 28,327 Income before interest and income taxes: Segment operating profit: Consumer Packaging $ 54,028 $ 48,183 Display and Packaging 838 2,815 Paper and Industrial Converted Products 27,797 29,750 Protective Solutions 9,685 5,287 Restructuring/Asset impairment charges 359 (1,992 ) Other, net 31,377 (24 ) Consolidated $ 124,084 $ 84,019 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 29, 2015 | |
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. Fox River Settlement and Remaining Claim In March 2014, U.S. Paper Mills Corp. (U.S. Mills), a wholly owned subsidiary of the Company, and five other defendants reached a potential settlement with the United States Environmental Protection Agency (EPA) and the Wisconsin Department of Natural Resources (WDNR) for natural resource damages and the environmental cleanup of the lower Fox River in Wisconsin. The settlement was approved by the court on February 6, 2015 and became final on April 7, 2015 when the time for appeal of the court's order expired with no appeal having been taken. The terms of the settlement required U.S. Mills to pay $14,700 , which was paid in April 2014, and protect U.S. Mills from claims by other parties relating to natural resource damages and the cleanup of the lower Fox River, except claims pursuant to Section 107 of the Comprehensive Environment Response, Compensation and Liability Act (CERCLA). The finalization of the settlement leaves intact a claim by Appvion, Inc., under Section 107 of CERCLA against eight defendants, including U.S. Mills, to recover response costs allegedly incurred by Appvion consistent with the national contingency plan for responding to release or threatened release of hazardous substances into the lower Fox River. The claim is asserted for approximately $200,000 . Although the Company believes that the maximum amount for which the defendants could be liable is approximately $16,000 and may be less, the court has not yet ruled on the issue and could find a lower or higher amount of liability. At December 31, 2014, U.S. Mills had reserves totaling $37,775 for potential liabilities associated with the lower Fox River. During the quarter ending March 29, 2015, U.S. Mills spent a total of $232 on legal fees related to Fox River. As a result of the settlement becoming final, the Company reversed $32,543 of the reserves, leaving a total of $5,000 reserved at March 29, 2015 for remaining potential liabilities associated with the lower Fox River. The reversal of these reserves resulted in reductions of "Selling, general and administrative expenses" and "Accrued expenses and other" in the Company's Condensed Consolidated Financial Statements. The actual costs that may be incurred associated with the remaining Appvion claim are dependent upon many factors and it is possible that costs could ultimately be higher than the amount provided for in the remaining $5,000 reserve. Because of the continuing uncertainties surrounding U.S. Mills' possible liability, including a potentially favorable resolution, the Company cannot currently estimate its potential liability, damages or range of potential loss, if any, beyond the amounts reserved, and an adverse resolution of these matters could have an adverse effect on the Company's financial position, results of operations and/or cash flows. The Company believes that the maximum additional exposure to its consolidated financial position beyond the amount reserved at March 29, 2015 is limited to the equity position of U.S. Mills, which was approximately $121,000 at March 29, 2015 . Tegrant On November 8, 2011, the Company completed the acquisition of Tegrant. During its due diligence, the Company identified several potential environmentally contaminated sites. The total remediation cost of these sites was estimated to be $18,850 at the time of acquisition and an accrual in this amount was recorded on Tegrant’s opening balance sheet. Since the acquisition, the Company has spent a total of $622 on remediation of these sites. During 2014, the Company increased its reserves for these sites by $324 in order to reflect its best estimate of what it is likely to pay in order to complete the remediation. At March 29, 2015 and December 31, 2014 , the Company's accrual for Tegrant's environmental contingencies totaled $18,552 and $18,635 , 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. Village of Rockton On September 15, 2014, the Village of Rockton, Illinois instituted 81 actions against the Company in the Circuit Court for the Seventeenth Judicial Circuit, Winnebago, Illinois. Each action seeks to assess penalties of up to $0.75 per day since December 2, 2007 for violations of one of three sections of the Municipal Code that: (a) require lots or premises to be maintained in a safe and sanitary condition at all times; (b) make it unlawful for any substance which shall be dangerous or detrimental to health to be allowed to exist in connection with any business, be used therein or used in any work or labor carried on in the Village and prohibit any health menace be permitted to exist in connection with business or in connection with any such work or labor; and (c) make it unlawful for any ashes, rubbish, tin cans and all combustibles to be deposited or dumped upon any lot or land in the Village, and require that they be deposited or dumped in the area set aside for that purpose. The actions relate to a paper plant in the Village closed by the Company in 2008 that the Company is in the process of remediating through the Illinois Environmental Protection Agency’s “brownfields” program. The Company has removed the cases to the United States District Court for the Northern District of Illinois and plans to vigorously defend its interests while continuing to participate in the “brownfields” program. 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. Summary As of March 29, 2015 and December 31, 2014 , the Company (and its subsidiaries) had accrued $26,348 and $59,253 , respectively, related to environmental contingencies. These accruals are included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets. Other Legal Matters In addition to those matters described above, the Company is subject to other various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters could differ from management’s expectations, the Company does not believe the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s financial statements. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 29, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (FASB) issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, and not recorded as separate assets. This update is effective for reporting periods beginning after December 15, 2015, and is to be applied on a retrospective basis. The Company plans to adopt ASU 2015-03 in the first quarter of 2016. As the Company's debt issuance costs are not material, implementation of this update will not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue From Contracts With Customers." ASU 2014-09 changes the definitions/criteria used to determine when revenue should be recognized from being based on risks and rewards to being based on control. It also changes the manner in which variable consideration is recognized, requires recognition of the time value of money when payment terms exceed one year, provides clarification on accounting for contract costs, and expands disclosure requirements. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016. The Company is still assessing the impact of ASU 2014-09 on its consolidated financial statements. During the three -month period ended March 29, 2015 , there have been no other newly issued nor newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at March 29, 2015 , there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements. |
Restatement of Previously Iss22
Restatement of Previously Issued Financial Statements (Tables) | 3 Months Ended |
Mar. 29, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | CONDENSED CONSOLIDATED BALANCE SHEETS March 29, 2015 as Previously Reported Measurement Period Adjustment (see Note 4) Effect of Restatement March 29, 2015 as Restated Assets Current Assets Cash and cash equivalents $ 200,804 $ — $ — $ 200,804 Trade accounts receivable, net of allowances 688,997 — (3,075 ) 685,922 Other receivables 58,464 — (19,037 ) 39,427 Inventories: Finished and in process 149,123 — — 149,123 Materials and supplies 254,362 — — 254,362 Prepaid expenses 48,576 — 2,521 51,097 Deferred income taxes 25,512 — — 25,512 1,425,838 — (19,591 ) 1,406,247 Property, Plant and Equipment, Net 1,102,481 — — 1,102,481 Goodwill 1,151,170 (4,485 ) — 1,146,685 Other Intangible Assets, Net 261,378 — — 261,378 Long-term Deferred Income Taxes 40,958 — 5,049 46,007 Other Assets 173,332 — — 173,332 Total Assets $ 4,155,157 $ (4,485 ) $ (14,542 ) $ 4,136,130 Liabilities and Equity Current Liabilities Payable to suppliers $ 506,335 $ — $ 8,601 $ 514,936 Accrued expenses and other 290,846 — (1,872 ) 288,974 Notes payable and current portion of long-term debt 51,936 — — 51,936 Accrued taxes 15,432 — (512 ) 14,920 864,549 — 6,217 870,766 Long-term Debt, Net of Current Portion 1,200,509 — — 1,200,509 Pension and Other Postretirement Benefits 436,900 — — 436,900 Deferred Income Taxes 90,008 (4,485 ) — 85,523 Other Liabilities 42,635 — — 42,635 Commitments and Contingencies Sonoco Shareholders’ Equity Common stock, no par value Authorized 300,000 shares outstanding at March 29, 2015 and December 31, 2014, respectively 7,175 — — 7,175 Capital in excess of stated value 398,224 — — 398,224 Accumulated other comprehensive loss (669,325 ) — 2,556 (666,769 ) Retained earnings 1,769,553 — (23,315 ) 1,746,238 Total Sonoco Shareholders’ Equity 1,505,627 — (20,759 ) 1,484,868 Noncontrolling Interests 14,929 — — 14,929 Total Equity 1,520,556 — (20,759 ) 1,499,797 Total Liabilities and Equity $ 4,155,157 $ (4,485 ) $ (14,542 ) $ 4,136,130 CONDENSED CONSOLIDATED STATEMENT OF INCOME Three Months Ended March 29, 2015 Effect of Restatement March 29, 2015 Net sales $ 1,203,264 $ 2,788 $ 1,206,052 Cost of sales 979,817 5,845 985,662 Gross profit 223,447 (3,057 ) 220,390 Selling, general and administrative expenses 96,665 — 96,665 Restructuring/Asset impairment charges (359 ) — (359 ) Income before interest and income taxes 127,141 (3,057 ) 124,084 Interest expense 13,775 — 13,775 Interest income 554 — 554 Income before income taxes 113,920 (3,057 ) 110,863 Provision for income taxes 27,138 (917 ) 26,221 Income before equity in earnings of affiliates 86,782 (2,140 ) 84,642 Equity in earnings of affiliates, net of tax 1,046 — 1,046 Net income $ 87,828 $ (2,140 ) $ 85,688 Net loss attributable to noncontrolling interests 92 — 92 Net income attributable to Sonoco $ 87,920 $ (2,140 ) $ 85,780 Weighted average common shares outstanding: Basic 101,283 — 101,283 Diluted 102,167 — 102,167 Per common share: Net income attributable to Sonoco: Basic $ 0.87 $ (0.02 ) $ 0.85 Diluted $ 0.86 $ (0.02 ) $ 0.84 Cash dividends $ 0.32 $ — $ 0.32 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended March 29, 2015 as Previously Reported Effect of Restatement March 29, 2015 as Restated Net income $ 87,828 $ (2,140 ) $ 85,688 Other comprehensive income/(loss): Foreign currency translation adjustments (63,294 ) 308 (62,986 ) Changes in defined benefit plans, net of tax 6,273 — 6,273 Changes in derivative financial instruments, net of tax (1,205 ) — (1,205 ) Other comprehensive income/(loss) (58,226 ) 308 (57,918 ) Comprehensive income 29,602 (1,832 ) 27,770 Net loss attributable to noncontrolling interests 92 — 92 Other comprehensive loss attributable to noncontrolling interests 631 — 631 Comprehensive income attributable to Sonoco $ 30,325 $ (1,832 ) $ 28,493 CONDENSED CONSOLIDATED STATEMENT OF INCOME Three Months Ended March 30, 2014 as Previously Reported Effect of Restatement March 30, 2014 as Restated Net sales $ 1,185,626 $ 4,406 $ 1,190,032 Cost of sales 973,323 6,948 980,271 Gross profit 212,303 (2,542 ) 209,761 Selling, general and administrative expenses 123,750 — 123,750 Restructuring/Asset impairment charges 1,992 — 1,992 Income before interest and income taxes 86,561 (2,542 ) 84,019 Interest expense 13,284 — 13,284 Interest income 641 — 641 Income before income taxes 73,918 (2,542 ) 71,376 Provision for income taxes 23,169 (658 ) 22,511 Income before equity in earnings of affiliates 50,749 (1,884 ) 48,865 Equity in earnings of affiliates, net of tax 1,476 — 1,476 Net income $ 52,225 $ (1,884 ) $ 50,341 Net loss attributable to noncontrolling interests 77 — 77 Net income attributable to Sonoco $ 52,302 $ (1,884 ) $ 50,418 Weighted average common shares outstanding: Basic 102,771 — 102,771 Diluted 103,767 — 103,767 Per common share: Net income attributable to Sonoco: Basic $ 0.51 $ (0.02 ) $ 0.49 Diluted $ 0.50 $ (0.01 ) $ 0.49 Cash dividends $ 0.31 $ — $ 0.31 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended March 30, 2014 as Previously Reported Effect of Restatement March 30, 2014 as Restated Net income $ 52,225 $ (1,884 ) $ 50,341 Other comprehensive income/(loss): Foreign currency translation adjustments (7,359 ) 23 (7,336 ) Changes in defined benefit plans, net of tax 4,174 — 4,174 Changes in derivative financial instruments, net of tax 236 — 236 Other comprehensive income/(loss) (2,949 ) 23 (2,926 ) Comprehensive income 49,276 (1,861 ) 47,415 Net loss attributable to noncontrolling interests 77 — 77 Other comprehensive loss attributable to noncontrolling interests 119 — 119 Comprehensive income attributable to Sonoco $ 49,472 $ (1,861 ) $ 47,611 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Three Months Ended March 29, 2015 as Previously Reported Effect of Restatement March 29, 2015 as Restated Cash Flows from Operating Activities: Net income $ 87,828 $ (2,140 ) $ 85,688 Adjustments to reconcile net income to net cash provided by operating activities: Asset impairment 275 — 275 Depreciation, depletion and amortization 51,877 — 51,877 Gain on reversal of Fox River environmental reserves (32,543 ) — (32,543 ) Share-based compensation expense 3,878 — 3,878 Equity in earnings of affiliates (1,046 ) — (1,046 ) Cash dividends from affiliated companies 450 — 450 Gain on disposition of assets (8,369 ) — (8,369 ) Pension and postretirement plan expense 13,012 — 13,012 Pension and postretirement plan contributions (17,017 ) — (17,017 ) Tax effect of share-based compensation exercises 3,404 — 3,404 Excess tax benefit of share-based compensation (3,400 ) — (3,400 ) Net increase in deferred taxes 4,140 (735 ) 3,405 Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: Trade accounts receivable (37,038 ) (11,898 ) (48,936 ) Inventories (6,066 ) — (6,066 ) Payable to suppliers 4,091 3,003 7,094 Prepaid expenses (1,147 ) 1,677 530 Accrued expenses (986 ) (3,050 ) (4,036 ) Income taxes payable and other income tax items 15,365 (64 ) 15,301 Other assets and liabilities (19,219 ) 16,048 (3,171 ) Net cash provided by operating activities 57,489 2,841 60,330 Cash Flows from Investing Activities: Purchase of property, plant and equipment (40,954 ) — (40,954 ) Proceeds from the sale of assets 30,708 — 30,708 Investment in affiliates and other, net 33 (2,841 ) (2,808 ) Net cash used in investing activities (10,213 ) (2,841 ) (13,054 ) Cash Flows from Financing Activities: Proceeds from issuance of debt 14,127 — 14,127 Principal repayment of debt (12,802 ) — (12,802 ) Net decrease in outstanding checks 8,752 — 8,752 Excess tax benefit of share-based compensation 3,400 — 3,400 Cash dividends (32,263 ) — (32,263 ) Shares acquired (7,591 ) — (7,591 ) Shares issued 1,165 — 1,165 Net cash used in financing activities (25,212 ) — (25,212 ) Effects of Exchange Rate Changes on Cash 17,572 — 17,572 Net Increase in Cash and Cash Equivalents 39,636 — 39,636 Cash and cash equivalents at beginning of period 161,168 — 161,168 Cash and cash equivalents at end of period $ 200,804 $ — $ 200,804 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Three Months Ended March 30, 2014 as Previously Reported Effect of Restatement March 30, 2014 as Restated Cash Flows from Operating Activities: Net income $ 52,225 $ (1,884 ) $ 50,341 Adjustments to reconcile net income to net cash provided by operating activities: Asset impairment 492 — 492 Depreciation, depletion and amortization 47,179 — 47,179 Gain on reversal of Fox River environmental reserves — — — Share-based compensation expense 5,560 — 5,560 Equity in earnings of affiliates (1,476 ) — (1,476 ) Cash dividends from affiliated companies 900 — 900 Gain on disposition of assets (872 ) — (872 ) Pension and postretirement plan expense 9,113 — 9,113 Pension and postretirement plan contributions (43,515 ) — (43,515 ) Tax effect of share-based compensation exercises 1,664 — 1,664 Excess tax benefit of share-based compensation (1,758 ) — (1,758 ) Net change in deferred taxes 2,388 (319 ) 2,069 Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: Trade accounts receivable (68,142 ) — (68,142 ) Inventories (3,185 ) — (3,185 ) Payable to suppliers 12,722 (1,409 ) 11,313 Prepaid expenses (1,348 ) 4 (1,344 ) Accrued expenses 5,509 898 6,407 Income taxes payable and other income tax items 25,388 (334 ) 25,054 Other assets and liabilities 2,620 3,044 5,664 Net cash provided by operating activities 45,464 — 45,464 Cash Flows from Investing Activities: Purchase of property, plant and equipment (37,717 ) — (37,717 ) Proceeds from the sale of assets 2,299 — 2,299 Investment in affiliates and other, net 22 — 22 Net cash used in investing activities (35,396 ) — (35,396 ) Cash Flows from Financing Activities: Proceeds from issuance of debt 14,156 — 14,156 Principal repayment of debt (10,461 ) — (10,461 ) Net decrease in outstanding checks 182 — 182 Excess tax benefit of share-based compensation 1,758 — 1,758 Cash dividends (31,725 ) — (31,725 ) Shares acquired (10,678 ) — (10,678 ) Shares issued 1,867 — 1,867 Net cash used in financing activities (34,901 ) — (34,901 ) Effects of Exchange Rate Changes on Cash (1,327 ) — (1,327 ) Net Decrease in Cash and Cash Equivalents (26,160 ) — (26,160 ) Cash and cash equivalents at beginning of period 217,567 — 217,567 Cash and cash equivalents at end of period $ 191,407 $ — $ 191,407 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 29, 2015 | |
Equity [Abstract] | |
Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended March 29, March 30, (as Restated) (as Restated) Numerator: Net income attributable to Sonoco $ 85,780 $ 50,418 Denominator: Weighted average common shares outstanding: Basic 101,283,000 102,771,000 Dilutive effect of stock-based compensation 884,000 996,000 Diluted 102,167,000 103,767,000 Reported net income attributable to Sonoco per common share: Basic $ 0.85 $ 0.49 Diluted $ 0.84 $ 0.49 |
Restructuring and Asset Impai24
Restructuring and Asset Impairment (Tables) | 3 Months Ended |
Mar. 29, 2015 | |
Restructuring and Related Activities [Abstract] | |
Total Restructuring and Asset Impairment Charges Net | Following are the total restructuring and asset impairment charges/(credits), net of adjustments, and gains on dispositions recognized by the Company during the periods presented: March 29, 2015 March 30, 2014 Restructuring/Asset impairment: 2015 Actions $ (851 ) $ — 2014 Actions 342 1,399 2013 and Earlier Actions 150 593 Restructuring/Asset impairment (income)/charges $ (359 ) $ 1,992 Income tax benefit $ (11,591 ) $ (411 ) Costs attributable to noncontrolling interests, net of tax (15 ) (4 ) Total impact of restructuring/asset impairment (income)/charges, net of tax $ (11,965 ) $ 1,577 |
Actions and Related Expenses by Segment and by Type Incurred and Estimated for Given Years | Below is a summary of expenses/(income) incurred by segment for 2013 and Earlier Actions for the three -month periods ended March 29, 2015 and March 30, 2014 . 2013 & Earlier Actions First Quarter 2015 First Quarter 2014 Consumer Packaging $ — $ (1 ) Display and Packaging — 247 Paper and Industrial Converted Products 150 296 Protective Solutions — 51 Total Charges and Adjustments $ 150 $ 593 Below is a summary of 2015 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2015 Actions First Quarter 2015 Estimated Severance and Termination Benefits Consumer Packaging $ 2,201 $ 4,101 Paper and Industrial Converted Products 3,028 3,028 Corporate 1,166 1,616 Asset Impairment / Disposal of Assets Consumer Packaging (7,331 ) (7,331 ) Paper and Industrial Converted Products 2 2 Other Costs Consumer Packaging 75 175 Paper and Industrial Converted Products 8 8 Total Charges and Adjustments $ (851 ) $ 1,599 Below is a summary of 2014 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2014 Actions First Quarter 2015 First Quarter 2014 Total Incurred Estimated Severance and Termination Benefits Consumer Packaging $ — $ 650 $ 850 $ 850 Display and Packaging — — 594 594 Paper and Industrial Converted Products 99 265 3,376 3,376 Protective Solutions (32 ) — 729 729 Asset Impairment / Disposal of Assets Consumer Packaging — — 2,446 2,446 Paper and Industrial Converted Products — 473 781 781 Protective Solutions 33 — 368 368 Other Costs Consumer Packaging 32 11 5,278 5,328 Display and Packaging — — 5 5 Paper and Industrial Converted Products 115 — 762 812 Protective Solutions 95 — 432 532 Total Charges and Adjustments $ 342 $ 1,399 $ 15,621 $ 15,821 |
Restructuring Accrual Activity for Given Years | The following table sets forth the activity in the 2014 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: 2014 Actions Severance Asset Other Total Accrual Activity 2015 Year to Date Liability at December 31, 2014 $ 859 $ — $ 463 $ 1,322 2015 charges 111 33 293 437 Adjustments (44 ) — (51 ) (95 ) Cash receipts/(payments) (451 ) — (690 ) (1,141 ) Asset write downs/disposals — (33 ) — (33 ) Foreign currency translation (11 ) — (15 ) (26 ) Liability at March 29, 2015 $ 464 $ — $ — $ 464 The followi ng table sets forth the activity in the 2015 Ac tions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: 2015 Actions Severance Termination Asset Impairment/ Disposal Other Costs Total Accrual Activity Liability at December 31, 2014 $ — $ — $ — $ — 2015 charges 6,395 (7,329 ) 83 (851 ) Cash receipts/(payments) (2,079 ) 29,128 (83 ) 26,966 Asset write downs/disposals — (21,799 ) — (21,799 ) Foreign currency translation (78 ) — — (78 ) Liability at March 29, 2015 $ 4,238 $ — $ — $ 4,238 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 29, 2015 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the three months ended March 29, 2015 and March 30, 2014 : Gains and Losses on Cash Flow Hedges Defined Benefit Pension Items (as Restated) Foreign Currency Items (as Restated) Accumulated Other Comprehensive Loss (as Restated) Balance at December 31, 2014 $ (5,962 ) $ (475,286 ) $ (127,603 ) $ (608,851 ) Other comprehensive income/(loss) before reclassifications (1,039 ) — (62,986 ) (64,025 ) Amounts reclassified from accumulated other comprehensive loss to net income 71 6,273 — 6,344 Amounts reclassified from accumulated other comprehensive loss to fixed assets (237 ) — — (237 ) Net current-period other comprehensive income/(loss) (1,205 ) 6,273 (62,986 ) (57,918 ) Balance at March 29, 2015 $ (7,167 ) $ (469,013 ) $ (190,589 ) $ (666,769 ) Balance at December 31, 2013 $ (262 ) $ (344,622 ) $ (24,985 ) $ (369,869 ) Other comprehensive income/(loss) before reclassifications 1,350 — (7,336 ) (5,986 ) Amounts reclassified from accumulated other comprehensive loss to net income (1,125 ) 4,174 — 3,049 Amounts reclassified from accumulated other comprehensive loss to fixed assets 11 — — 11 Net current-period other comprehensive 236 4,174 (7,336 ) (2,926 ) Balance at March 30, 2014 $ (26 ) $ (340,448 ) $ (32,321 ) $ (372,795 ) |
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 classified out of each component of accumulated other comprehensive loss for the three months ended March 29, 2015 and March 30, 2014 : Amount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Details about Accumulated Other Comprehensive Loss Components March 29, March 30, Affected Line Item in the Condensed Consolidated Statements of Net Income Gains and losses on cash flow hedges Foreign exchange contracts $ 1,302 $ (999 ) Net sales Foreign exchange contracts 1,024 1,862 Cost of sales Commodity contracts (2,423 ) 717 Cost of sales (97 ) 1,580 Total before tax 26 (455 ) Tax (provision)/benefit $ (71 ) $ 1,125 Net of tax Defined benefit pension items Amortization of defined benefit pension items (a) $ (7,445 ) $ (4,667 ) Cost of sales Amortization of defined benefit pension items (a) (2,481 ) (1,556 ) Selling, general and (9,926 ) (6,223 ) Total before tax 3,653 2,049 Tax benefit $ (6,273 ) $ (4,174 ) Net of tax Total reclassifications for the period $ (6,344 ) $ (3,049 ) Net of tax (a) See Note 10 for additional details. |
Goodwill and Other Intangible26
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 29, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill by Segment | A summary of the changes in goodwill by segment for the three months ended March 29, 2015 is as follows: Consumer Packaging Display and Packaging Paper and Industrial Converted Products Protective Solutions Total Goodwill at December 31, 2014 $ 508,582 $ 204,629 $ 243,586 $ 221,165 $ 1,177,962 Dispositions (1,727 ) — — — (1,727 ) Foreign currency translation (18,637 ) — (10,913 ) — (29,550 ) Other — — — — — Goodwill at March 29, 2015 $ 488,218 $ 204,629 $ 232,673 $ 221,165 $ 1,146,685 |
Summary of Other Intangible Assets | A summary of other intangible assets as of March 29, 2015 and December 31, 2014 is as follows: March 29, December 31, Other Intangible Assets, gross Patents $ 12,721 $ 13,883 Customer lists 372,633 385,466 Trade names 19,246 19,366 Proprietary technology 17,739 17,786 Land use rights 314 320 Other 1,281 1,309 Other Intangible Assets, gross $ 423,934 $ 438,130 Accumulated Amortization $ (162,556 ) $ (157,195 ) Other Intangible Assets, net $ 261,378 $ 280,935 |
Financial Instruments and Der27
Financial Instruments and Derivatives (Tables) | 3 Months Ended |
Mar. 29, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Carrying Amounts and Fair Values of Financial Instruments | The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value. March 29, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, net of current portion $ 1,200,509 $ 1,338,655 $ 1,200,885 $ 1,322,795 |
Net Positions of Foreign Contracts | The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales and purchases forecast to occur in 2015. The net positions of these contracts at March 29, 2015 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 13,112,256 Mexican peso purchase 287,704 Canadian dollar purchase 45,175 Russian ruble purchase 30,183 Turkish lira purchase 5,262 Polish zloty purchase 874 British pound sell (769 ) New Zealand dollar sell (2,499 ) Euro sell (2,783 ) Australian dollar sell (5,141 ) |
Net Positions of Other Derivatives Contract | The net positions of these contracts at March 29, 2015 , were as follows (in thousands): Currency Action Quantity Colombian peso purchase 28,330,708 Mexican peso purchase 193,849 Canadian dollar purchase 12,483 Euro purchase 6,847 British pound sell (5,000 ) |
Location and Fair Values of Derivative Instruments | The following table sets forth the location and fair values of the Company’s derivative instruments at March 29, 2015 and December 31, 2014 : Description Balance Sheet Location March 29, December 31, Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ — $ — Commodity Contracts Other assets $ — $ — Commodity Contracts Accrued expenses and other $ (5,698 ) $ (5,808 ) Commodity Contracts Other liabilities $ (115 ) $ (278 ) Foreign Exchange Contracts Prepaid expenses $ 1,179 $ 574 Foreign Exchange Contracts Accrued expenses and other $ (7,123 ) $ (4,100 ) Derivatives not designated as hedging instruments: Foreign Exchange Contracts Prepaid expenses $ 92 $ 68 Foreign Exchange Contracts Accrued expenses and other $ (1,227 ) $ (1,166 ) |
Effect of Derivative Instruments on Financial Performance | Location of Gain or (Loss) Recognized in Income Statement The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three months ended March 29, 2015 and March 30, 2014 : Description Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) Derivatives in Cash Flow Hedging Relationships: Three months ended March 29, 2015 Foreign Exchange Contracts $ 146 Net sales $ 1,302 Net sales $ — Cost of sales $ 1,024 Commodity Contracts $ (2,110 ) Cost of sales $ (2,423 ) Cost of sales $ 40 Three months ended March 30, 2014 Foreign Exchange Contracts $ (776 ) Net sales $ (999 ) Net sales $ — Cost of sales $ 1,862 Commodity Contracts $ 2,676 Cost of sales $ 717 Cost of sales $ (20 ) Description Location of Gain or (Loss) Recognized in Income Statement Gain or (Loss) Recognized Derivatives not Designated as Hedging Instruments: Three months ended March 29, 2015 Foreign Exchange Contracts Cost of sales $ (45 ) Selling, general and administrative $ 8 Three months ended March 30, 2014 Foreign Exchange Contracts Cost of sales $ 37 Selling, general and administrative $ 56 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 29, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured on Recurring Basis | The following table sets forth information regarding the Company’s financial assets and financial liabilities, excluding retirement and postretirement plan assets, measured at fair value on a recurring basis: Description March 29, Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (5,813 ) $ — $ (5,813 ) $ — Foreign exchange contracts (5,944 ) — (5,944 ) — Non-hedge derivatives, net: Foreign exchange contracts (1,135 ) — (1,135 ) — Deferred compensation plan assets 951 951 — — Description December 31, Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (6,086 ) $ — $ (6,086 ) $ — Foreign exchange contracts (3,526 ) — (3,526 ) — Non-hedge derivatives, net: Foreign exchange contracts (1,098 ) — (1,098 ) — Deferred compensation plan assets 944 944 — — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 29, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost include the following: Three Months Ended March 29, March 30, Retirement Plans Service cost $ 5,253 $ 5,167 Interest cost 16,933 17,897 Expected return on plan assets (22,726 ) (22,753 ) Amortization of net transition obligation 40 99 Amortization of prior service cost 180 163 Amortization of net actuarial loss 9,728 6,302 Net periodic benefit cost $ 9,408 $ 6,875 Retiree Health and Life Insurance Plans Service cost $ 178 $ 173 Interest cost 222 257 Expected return on plan assets (393 ) (387 ) Amortization of prior service credit (25 ) (337 ) Amortization of net actuarial loss (5 ) (24 ) Net periodic benefit income $ (23 ) $ (318 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 29, 2015 | |
Segment Reporting [Abstract] | |
Segment Financial Information | SEGMENT FINANCIAL INFORMATION Three Months Ended March 29, March 30, (as Restated) (as Restated) Net sales: Consumer Packaging $ 519,877 $ 464,925 Display and Packaging 145,786 157,428 Paper and Industrial Converted Products 422,311 455,610 Protective Solutions 118,078 112,069 Consolidated $ 1,206,052 $ 1,190,032 Intersegment sales: Consumer Packaging $ 1,680 $ 1,033 Display and Packaging 397 383 Paper and Industrial Converted Products 27,551 26,345 Protective Solutions 608 566 Consolidated $ 30,236 $ 28,327 Income before interest and income taxes: Segment operating profit: Consumer Packaging $ 54,028 $ 48,183 Display and Packaging 838 2,815 Paper and Industrial Converted Products 27,797 29,750 Protective Solutions 9,685 5,287 Restructuring/Asset impairment charges 359 (1,992 ) Other, net 31,377 (24 ) Consolidated $ 124,084 $ 84,019 |
Restatement of Previously Iss31
Restatement of Previously Issued Financial Statements (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | 39 Months Ended | ||||||
Mar. 29, 2015 | Mar. 30, 2014 | Jun. 29, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Mar. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Net income | $ 85,688 | $ 50,341 | ||||||||
Diluted (in usd per share) | $ 0.84 | $ 0.49 | ||||||||
Cost of sales | $ 985,662 | $ 980,271 | ||||||||
Gross Profit | 220,390 | 209,761 | ||||||||
Net income attributable to Sonoco | 85,780 | 50,418 | ||||||||
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Restatement Adjustment [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Net income | $ (2,140) | $ (1,884) | ||||||||
Diluted (in usd per share) | $ (0.02) | $ (0.01) | ||||||||
Cost of sales | $ 5,845 | $ 6,948 | ||||||||
Gross Profit | (3,057) | (2,542) | ||||||||
Net income attributable to Sonoco | (2,140) | (1,884) | ||||||||
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Scenario, Previously Reported [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Net income | $ 87,828 | $ 52,225 | ||||||||
Diluted (in usd per share) | $ 0.86 | $ 0.50 | ||||||||
Cost of sales | $ 979,817 | $ 973,323 | ||||||||
Gross Profit | 223,447 | 212,303 | ||||||||
Net income attributable to Sonoco | 87,920 | $ 52,302 | ||||||||
Immaterial Error Correction [Member] | Restatement Adjustment [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Valuation Allowances and Reserves, Adjustments | $ 11,516 | |||||||||
Payments to Acquire Assets, Investing Activities | 2,841 | |||||||||
Understatement of Cost of Sales [Member] | Restatement Adjustment [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Cost of sales | $ 1,184 | |||||||||
Net income attributable to Sonoco | 770 | |||||||||
Understatement of Cost of Sales [Member] | Scenario, Previously Reported [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Gross Profit | $ 260 | $ 924 | ||||||||
Adjustment to Decrease Deferred Tax Expense and Deferred Tax Liabilities in Various Jurisdictions [Member] | Restatement Adjustment [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Valuation Allowances and Reserves, Adjustments | 3,202 | 639 | 491 | $ 789 | $ 910 | $ 373 | ||||
Subsequent Event [Member] | Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Restatement Adjustment [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Net income | $ 2,139 | $ 10,817 | $ 9,758 | $ 601 | $ 23,315 | |||||
Diluted (in usd per share) | $ 0.23 |
Restatement of Previously Iss32
Restatement of Previously Issued Financial Statements (Balance Sheet) (Details) - USD ($) $ in Thousands | Mar. 29, 2015 | Dec. 31, 2014 | [1] | Mar. 30, 2014 | Dec. 31, 2013 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash and cash equivalents | $ 200,804 | $ 161,168 | $ 191,407 | $ 217,567 | [1] | |
Trade accounts receivable, net of allowances | 685,922 | 653,737 | ||||
Other receivables | 39,427 | 38,580 | ||||
Finished and in process | 149,123 | 151,150 | ||||
Materials and supplies | 254,362 | 269,126 | ||||
Prepaid expenses | 51,097 | 61,071 | ||||
Deferred income taxes | 25,512 | 38,957 | ||||
Assets, Current | 1,406,247 | 1,373,789 | ||||
Property, Plant and Equipment, Net | 1,102,481 | 1,148,607 | ||||
Goodwill | 1,146,685 | 1,177,962 | ||||
Other Intangible Assets, Net | 261,378 | 280,935 | ||||
Long-term Deferred Income Taxes | 46,007 | 45,442 | ||||
Other Assets | 173,332 | 167,176 | ||||
Assets | 4,136,130 | 4,193,911 | ||||
Payable to suppliers | 514,936 | 517,228 | ||||
Accrued expenses and other | 288,974 | 334,086 | ||||
Notes payable and current portion of long-term debt | 51,936 | 52,280 | ||||
Accrued taxes | 14,920 | 8,599 | ||||
Liabilities, Current | 870,766 | 912,193 | ||||
Long-term Debt, Net of Current Portion | 1,200,509 | 1,200,885 | ||||
Pension and Other Postretirement Benefits | 436,900 | 444,231 | ||||
Deferred Income Taxes | 85,523 | 91,157 | ||||
Other Liabilities | $ 42,635 | $ 41,598 | ||||
Commitments and Contingencies | ||||||
Common stock, no par value, Authorized 300,000 shares 100,899 and 100,603 shares issued and outstanding at March 29, 2015 and December 31, 2014, respectively | $ 7,175 | $ 7,175 | ||||
Capital in excess of stated value | 398,224 | 396,980 | ||||
Accumulated other comprehensive loss | (666,769) | (608,851) | (372,795) | (369,869) | ||
Retained earnings | 1,746,238 | 1,692,891 | ||||
Stockholders' Equity Attributable to Parent | 1,484,868 | 1,488,195 | ||||
Noncontrolling Interests | 14,929 | 15,652 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,499,797 | 1,503,847 | ||||
Liabilities and Equity | 4,136,130 | 4,193,911 | ||||
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Scenario, Previously Reported [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash and cash equivalents | 200,804 | 161,168 | 191,407 | 217,567 | [1] | |
Trade accounts receivable, net of allowances | 688,997 | |||||
Other receivables | 58,464 | |||||
Finished and in process | 149,123 | |||||
Materials and supplies | 254,362 | |||||
Prepaid expenses | 48,576 | |||||
Deferred income taxes | 25,512 | |||||
Assets, Current | 1,425,838 | |||||
Property, Plant and Equipment, Net | 1,102,481 | |||||
Goodwill | 1,151,170 | |||||
Other Intangible Assets, Net | 261,378 | |||||
Long-term Deferred Income Taxes | 40,958 | |||||
Other Assets | 173,332 | |||||
Assets | 4,155,157 | |||||
Payable to suppliers | 506,335 | |||||
Accrued expenses and other | 290,846 | |||||
Notes payable and current portion of long-term debt | 51,936 | |||||
Accrued taxes | 15,432 | |||||
Liabilities, Current | 864,549 | |||||
Long-term Debt, Net of Current Portion | 1,200,509 | |||||
Pension and Other Postretirement Benefits | 436,900 | |||||
Deferred Income Taxes | 90,008 | |||||
Other Liabilities | 42,635 | |||||
Common stock, no par value, Authorized 300,000 shares 100,899 and 100,603 shares issued and outstanding at March 29, 2015 and December 31, 2014, respectively | 7,175 | |||||
Capital in excess of stated value | 398,224 | |||||
Accumulated other comprehensive loss | (669,325) | |||||
Retained earnings | 1,769,553 | |||||
Stockholders' Equity Attributable to Parent | 1,505,627 | |||||
Noncontrolling Interests | 14,929 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,520,556 | |||||
Liabilities and Equity | 4,155,157 | |||||
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Restatement Adjustment [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash and cash equivalents | 0 | $ 0 | $ 0 | $ 0 | [1] | |
Trade accounts receivable, net of allowances | (3,075) | |||||
Other receivables | (19,037) | |||||
Finished and in process | 0 | |||||
Materials and supplies | 0 | |||||
Prepaid expenses | 2,521 | |||||
Deferred income taxes | 0 | |||||
Assets, Current | (19,591) | |||||
Property, Plant and Equipment, Net | 0 | |||||
Goodwill | 0 | |||||
Other Intangible Assets, Net | 0 | |||||
Long-term Deferred Income Taxes | 5,049 | |||||
Other Assets | 0 | |||||
Assets | (14,542) | |||||
Payable to suppliers | 8,601 | |||||
Accrued expenses and other | (1,872) | |||||
Notes payable and current portion of long-term debt | 0 | |||||
Accrued taxes | (512) | |||||
Liabilities, Current | 6,217 | |||||
Long-term Debt, Net of Current Portion | 0 | |||||
Pension and Other Postretirement Benefits | 0 | |||||
Deferred Income Taxes | 0 | |||||
Other Liabilities | 0 | |||||
Common stock, no par value, Authorized 300,000 shares 100,899 and 100,603 shares issued and outstanding at March 29, 2015 and December 31, 2014, respectively | 0 | |||||
Capital in excess of stated value | 0 | |||||
Accumulated other comprehensive loss | 2,556 | |||||
Retained earnings | (23,315) | |||||
Stockholders' Equity Attributable to Parent | (20,759) | |||||
Noncontrolling Interests | 0 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (20,759) | |||||
Liabilities and Equity | (14,542) | |||||
Scenario, Adjustment [Member] | Restatement Adjustment [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Goodwill | (4,485) | |||||
Assets | (4,485) | |||||
Deferred Income Taxes | (4,485) | |||||
Liabilities and Equity | $ (4,485) | |||||
[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. |
Restatement of Previously Iss33
Restatement of Previously Issued Financial Statements (Income Statement) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net sales | $ 1,206,052 | $ 1,190,032 |
Cost of sales | 985,662 | 980,271 |
Gross Profit | 220,390 | 209,761 |
Selling, general and administrative expenses | 96,665 | 123,750 |
Restructuring/Asset impairment | (359) | 1,992 |
Income before interest and income taxes | 124,084 | 84,019 |
Interest expense | 13,775 | 13,284 |
Interest income | 554 | 641 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 110,863 | 71,376 |
Provision for income taxes | 26,221 | 22,511 |
Net of tax | 84,642 | 48,865 |
Equity in earnings of affiliates, net of tax | 1,046 | 1,476 |
Net income | 85,688 | 50,341 |
Net loss attributable to noncontrolling interests | 92 | 77 |
Net income attributable to Sonoco | $ 85,780 | $ 50,418 |
Basic (in shares) | 101,283 | 102,771 |
Diluted (in shares) | 102,167 | 103,767 |
Basic (in usd per share) | $ 0.85 | $ 0.49 |
Diluted (in usd per share) | 0.84 | 0.49 |
Cash dividends (in usd per share) | $ 0.32 | $ 0.31 |
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Scenario, Previously Reported [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net sales | $ 1,203,264 | $ 1,185,626 |
Cost of sales | 979,817 | 973,323 |
Gross Profit | 223,447 | 212,303 |
Selling, general and administrative expenses | 96,665 | 123,750 |
Restructuring/Asset impairment | (359) | 1,992 |
Income before interest and income taxes | 127,141 | 86,561 |
Interest expense | 13,775 | 13,284 |
Interest income | 554 | 641 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 113,920 | 73,918 |
Provision for income taxes | 27,138 | 23,169 |
Net of tax | 86,782 | 50,749 |
Equity in earnings of affiliates, net of tax | 1,046 | 1,476 |
Net income | 87,828 | 52,225 |
Net loss attributable to noncontrolling interests | 92 | 77 |
Net income attributable to Sonoco | $ 87,920 | $ 52,302 |
Basic (in shares) | 101,283 | 102,771 |
Diluted (in shares) | 102,167 | 103,767 |
Basic (in usd per share) | $ 0.87 | $ 0.51 |
Diluted (in usd per share) | 0.86 | 0.50 |
Cash dividends (in usd per share) | $ 0.32 | $ 0.31 |
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Restatement Adjustment [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net sales | $ 2,788 | $ 4,406 |
Cost of sales | 5,845 | 6,948 |
Gross Profit | (3,057) | (2,542) |
Selling, general and administrative expenses | 0 | 0 |
Restructuring/Asset impairment | 0 | 0 |
Income before interest and income taxes | (3,057) | (2,542) |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (3,057) | (2,542) |
Provision for income taxes | (917) | (658) |
Net of tax | (2,140) | (1,884) |
Equity in earnings of affiliates, net of tax | 0 | 0 |
Net income | (2,140) | (1,884) |
Net loss attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Sonoco | $ (2,140) | $ (1,884) |
Basic (in shares) | 0 | 0 |
Diluted (in shares) | 0 | 0 |
Basic (in usd per share) | $ (0.02) | $ (0.02) |
Diluted (in usd per share) | (0.02) | (0.01) |
Cash dividends (in usd per share) | $ 0 | $ 0 |
Restatement of Previously Iss34
Restatement of Previously Issued Financial Statements (OCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income | $ 85,688 | $ 50,341 |
Foreign currency translation adjustments | (62,986) | (7,336) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | (6,273) | (4,174) |
Changes in derivative financial instruments, net of tax | (1,205) | 236 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (57,918) | (2,926) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 27,770 | 47,415 |
Net Income (Loss) Attributable to Noncontrolling Interest | (92) | (77) |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (631) | (119) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 28,493 | 47,611 |
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Scenario, Previously Reported [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income | 87,828 | 52,225 |
Foreign currency translation adjustments | (63,294) | (7,359) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | (6,273) | (4,174) |
Changes in derivative financial instruments, net of tax | (1,205) | 236 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (58,226) | (2,949) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 29,602 | 49,276 |
Net Income (Loss) Attributable to Noncontrolling Interest | (92) | (77) |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (631) | (119) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 30,325 | 49,472 |
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Restatement Adjustment [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income | (2,140) | (1,884) |
Foreign currency translation adjustments | 308 | 23 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 0 | 0 |
Changes in derivative financial instruments, net of tax | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 308 | 23 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (1,832) | (1,861) |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (1,832) | $ (1,861) |
Restatement of Previously Iss35
Restatement of Previously Issued Financial Statements (Cash Flow) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 29, 2015 | Mar. 30, 2014 | Dec. 31, 2014 | [1] | Dec. 31, 2013 | [1] | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income | $ 85,688 | $ 50,341 | ||||
Asset impairment | 275 | 492 | ||||
Depreciation, depletion and amortization | 51,877 | 47,179 | ||||
Gain on reversal of Fox River environmental reserves | (32,543) | 0 | ||||
Share-based compensation expense | 3,878 | 5,560 | ||||
Equity in earnings of affiliates, net of tax | 1,046 | 1,476 | ||||
Cash dividends from affiliated companies | 450 | 900 | ||||
Gain (Loss) on Disposition of Property Plant Equipment | 8,369 | 872 | ||||
Pension and postretirement plan expense | 13,012 | 9,113 | ||||
Contribution to defined benefit retirement and retiree health and life insurance plans | 17,017 | 43,515 | ||||
Tax effect of share-based compensation exercises | 3,404 | 1,664 | ||||
Excess Tax Benefit from Share-based Compensation, Operating Activities | 3,400 | 1,758 | ||||
Net increase in deferred taxes | 3,405 | 2,069 | ||||
Increase (Decrease) in Accounts Receivable | (48,936) | (68,142) | ||||
Increase (Decrease) in Inventories | (6,066) | (3,185) | ||||
Payable to suppliers | 7,094 | 11,313 | ||||
Increase (Decrease) in Prepaid Expense | 530 | (1,344) | ||||
Accrued expenses | (4,036) | 6,407 | ||||
Income taxes payable and other income tax items | 15,301 | 25,054 | ||||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | (3,171) | 5,664 | ||||
Net Cash Provided by (Used in) Operating Activities | 60,330 | 45,464 | ||||
Payments to Acquire Property, Plant, and Equipment | (40,954) | (37,717) | ||||
Proceeds from the sale of assets | 30,708 | 2,299 | ||||
Net Cash Provided by (Used in) Investing Activities | (13,054) | (35,396) | ||||
Payments for (Proceeds from) Businesses and Interest in Affiliates | (2,808) | 22 | ||||
Proceeds from issuance of debt | 14,127 | 14,156 | ||||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | (12,802) | (10,461) | ||||
Net decrease in outstanding checks | 8,752 | 182 | ||||
Excess tax benefit of share-based compensation | 3,400 | 1,758 | ||||
Payments of Dividends | (32,263) | (31,725) | ||||
Payments for Repurchase of Common Stock | (7,591) | (10,678) | ||||
Shares issued | 1,165 | 1,867 | ||||
Net Cash Provided by (Used in) Financing Activities | (25,212) | (34,901) | ||||
Effects of Exchange Rate Changes on Cash | 17,572 | (1,327) | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | 39,636 | (26,160) | ||||
Cash and cash equivalents | 200,804 | 191,407 | $ 161,168 | $ 217,567 | ||
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Scenario, Previously Reported [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income | 87,828 | 52,225 | ||||
Asset impairment | 275 | 492 | ||||
Depreciation, depletion and amortization | 51,877 | 47,179 | ||||
Gain on reversal of Fox River environmental reserves | (32,543) | 0 | ||||
Share-based compensation expense | 3,878 | 5,560 | ||||
Equity in earnings of affiliates, net of tax | 1,046 | 1,476 | ||||
Cash dividends from affiliated companies | 450 | 900 | ||||
Gain (Loss) on Disposition of Property Plant Equipment | 8,369 | 872 | ||||
Pension and postretirement plan expense | 13,012 | 9,113 | ||||
Contribution to defined benefit retirement and retiree health and life insurance plans | 17,017 | 43,515 | ||||
Tax effect of share-based compensation exercises | 3,404 | 1,664 | ||||
Excess Tax Benefit from Share-based Compensation, Operating Activities | 3,400 | 1,758 | ||||
Net increase in deferred taxes | 4,140 | 2,388 | ||||
Increase (Decrease) in Accounts Receivable | (37,038) | (68,142) | ||||
Increase (Decrease) in Inventories | (6,066) | (3,185) | ||||
Payable to suppliers | 4,091 | 12,722 | ||||
Increase (Decrease) in Prepaid Expense | (1,147) | (1,348) | ||||
Accrued expenses | (986) | 5,509 | ||||
Income taxes payable and other income tax items | 15,365 | 25,388 | ||||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | (19,219) | 2,620 | ||||
Net Cash Provided by (Used in) Operating Activities | 57,489 | 45,464 | ||||
Payments to Acquire Property, Plant, and Equipment | (40,954) | (37,717) | ||||
Proceeds from the sale of assets | 30,708 | 2,299 | ||||
Net Cash Provided by (Used in) Investing Activities | (10,213) | (35,396) | ||||
Payments for (Proceeds from) Businesses and Interest in Affiliates | 33 | 22 | ||||
Proceeds from issuance of debt | 14,127 | 14,156 | ||||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | (12,802) | (10,461) | ||||
Net decrease in outstanding checks | 8,752 | 182 | ||||
Excess tax benefit of share-based compensation | 3,400 | 1,758 | ||||
Payments of Dividends | (32,263) | (31,725) | ||||
Payments for Repurchase of Common Stock | (7,591) | (10,678) | ||||
Shares issued | 1,165 | 1,867 | ||||
Net Cash Provided by (Used in) Financing Activities | (25,212) | (34,901) | ||||
Effects of Exchange Rate Changes on Cash | 17,572 | (1,327) | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | 39,636 | (26,160) | ||||
Cash and cash equivalents | 200,804 | 191,407 | 161,168 | 217,567 | ||
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Restatement Adjustment [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income | (2,140) | (1,884) | ||||
Asset impairment | 0 | 0 | ||||
Depreciation, depletion and amortization | 0 | 0 | ||||
Gain on reversal of Fox River environmental reserves | 0 | 0 | ||||
Share-based compensation expense | 0 | 0 | ||||
Equity in earnings of affiliates, net of tax | 0 | 0 | ||||
Cash dividends from affiliated companies | 0 | 0 | ||||
Gain (Loss) on Disposition of Property Plant Equipment | 0 | 0 | ||||
Pension and postretirement plan expense | 0 | 0 | ||||
Contribution to defined benefit retirement and retiree health and life insurance plans | 0 | 0 | ||||
Tax effect of share-based compensation exercises | 0 | 0 | ||||
Excess Tax Benefit from Share-based Compensation, Operating Activities | 0 | 0 | ||||
Net increase in deferred taxes | (735) | (319) | ||||
Increase (Decrease) in Accounts Receivable | (11,898) | 0 | ||||
Increase (Decrease) in Inventories | 0 | 0 | ||||
Payable to suppliers | 3,003 | (1,409) | ||||
Increase (Decrease) in Prepaid Expense | 1,677 | 4 | ||||
Accrued expenses | (3,050) | 898 | ||||
Income taxes payable and other income tax items | (64) | (334) | ||||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 16,048 | 3,044 | ||||
Net Cash Provided by (Used in) Operating Activities | 2,841 | 0 | ||||
Payments to Acquire Property, Plant, and Equipment | 0 | 0 | ||||
Proceeds from the sale of assets | 0 | 0 | ||||
Net Cash Provided by (Used in) Investing Activities | (2,841) | 0 | ||||
Payments for (Proceeds from) Businesses and Interest in Affiliates | (2,841) | 0 | ||||
Proceeds from issuance of debt | 0 | 0 | ||||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | 0 | 0 | ||||
Net decrease in outstanding checks | 0 | 0 | ||||
Excess tax benefit of share-based compensation | 0 | 0 | ||||
Payments of Dividends | 0 | 0 | ||||
Payments for Repurchase of Common Stock | 0 | 0 | ||||
Shares issued | 0 | 0 | ||||
Net Cash Provided by (Used in) Financing Activities | 0 | 0 | ||||
Effects of Exchange Rate Changes on Cash | 0 | 0 | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 0 | ||||
Cash and cash equivalents | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Restatement of Previously Iss36
Restatement of Previously Issued Financial Statements (Balance Sheet) (Parenthetical Details) - shares shares in Thousands | Mar. 29, 2015 | Dec. 31, 2014 |
Accounting Changes and Error Corrections [Abstract] | ||
Common stock, number of shares authorized | 300,000 | 300,000 |
Common stock, number of shares issued | 100,899 | 100,603 |
Common stock, number of shares outstanding | 100,899 | 100,603 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands, BRL in Millions | Apr. 01, 2015BRLemployee | Apr. 01, 2015USD ($)employee | Oct. 31, 2014USD ($) | Mar. 29, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 30, 2014USD ($) |
Business Acquisition [Line Items] | ||||||
Acquisition related costs | $ 1,166 | $ 24 | ||||
Consumer Packaging Segment [Member] | Weidenhammer Packaging Group [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 355,316 | |||||
Goodwill, Purchase Accounting Adjustments | $ 4,485 | $ 4,974 | ||||
Subsequent Event [Member] | Consumer Packaging Segment [Member] | Dalton Paper Products, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of controlling asset acquired | 67.00% | 67.00% | ||||
Payments to Acquire Businesses, Net of Cash Acquired | BRL 50.5 | $ 15,600 | ||||
Number of employees in the acquired entity | employee | 230 | 230 |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Numerator: | ||
Net income attributable to Sonoco | $ 85,780 | $ 50,418 |
Denominator: | ||
Basic (in shares) | 101,283 | 102,771 |
Dilutive effect of stock-based compensation (in shares) | 884 | 996 |
Diluted (in shares) | 102,167 | 103,767 |
Reported net income attributable to Sonoco per common share: | ||
Basic (in usd per share) | $ 0.85 | $ 0.49 |
Diluted (in usd per share) | $ 0.84 | $ 0.49 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | Jun. 10, 2015 | May. 15, 2015 | Apr. 15, 2015 | Mar. 10, 2015 | Feb. 25, 2015 | Feb. 11, 2015 | Mar. 29, 2015 | Mar. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | ||||||||||
Number of securities excluded from computation of dilutive earning per share | 395,883 | 643,827 | ||||||||
Dilutive Securities, Effect on Basic Earnings Per Share | $ 0 | |||||||||
Number of shares authorized for repurchase | 5,000,000 | |||||||||
Number of shares available for repurchase | 2,867,500 | |||||||||
Number of shares repurchased | 2,000,000 | 132,500 | ||||||||
Dividend declared date | Feb. 11, 2015 | |||||||||
Dividend declared and payable (in usd per share) | $ 0.32 | |||||||||
Dividend payable date of record | Feb. 25, 2015 | |||||||||
Dividend payable date | Mar. 10, 2015 | |||||||||
Tax Withholding Obligations [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of shares repurchased | 166,485 | 48,581 | ||||||||
Cost of shares repurchased | $ 7,591,000 | $ 2,043,000 | ||||||||
Subsequent Event [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividend declared date | Apr. 15, 2015 | |||||||||
Dividend declared and payable (in usd per share) | $ 0.35 | |||||||||
Dividend payable date of record | May 15, 2015 | |||||||||
Dividend payable date | Jun. 10, 2015 |
Restructuring and Asset Impai40
Restructuring and Asset Impairment - Restructuring and Asset Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment charges | $ (359) | $ 1,992 |
Income tax benefit | (11,591) | (411) |
Costs attributable to noncontrolling interests, net of tax | (15) | (4) |
Total impact of restructuring/asset impairment charges, net of tax | (11,965) | 1,577 |
2015 Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment charges | (851) | 0 |
2014 Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment charges | 342 | 1,399 |
2013 and Earlier Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment charges | $ 150 | $ 593 |
Restructuring and Asset Impai41
Restructuring and Asset Impairment - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 29, 2015USD ($)facilityPositions | Mar. 30, 2014USD ($) | Dec. 31, 2014USD ($)position | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Tax benefit | $ 26,221 | $ 22,511 | |
Restructuring Cost and Reserve [Line Items] | |||
Expected future charges associated with previous restructuring | 3,100 | ||
Metal Ends and Closures Business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of business | 7,331 | ||
Proceeds from sales of business | 29,128 | ||
Net fixed assets | 9,806 | ||
Inventory | 7,051 | ||
Goodwill | 1,727 | ||
Intangible assets | 3,516 | ||
Liabilities assumed by the acquiring company | 303 | ||
Tax benefit | $ 9,200 | ||
2015 Actions [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Elimination of Positions due to realign in cost structure | Positions | 102 | ||
2014 Actions [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Elimination of Positions due to realign in cost structure | position | 125 | ||
2013 and Earlier Actions [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected future charges associated with previous restructuring | $ 450 | ||
Remaining restructuring accrual | $ 1,542 | $ 1,990 | |
OHIO [Member] | Metal Ends and Closures Business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of production facilities sold | facility | 2 |
Restructuring and Asset Impai42
Restructuring and Asset Impairment - Actions and Related Expenses by Segment and by Type Incurred and Estimated for Given Years (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | $ (359) | $ 1,992 |
2015 Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | (851) | 0 |
Estimated Total Cost | 1,599 | |
2015 Actions [Member] | Severance and Termination Benefits [Member] | Consumer Packaging [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 2,201 | |
Estimated Total Cost | 4,101 | |
2015 Actions [Member] | Severance and Termination Benefits [Member] | Paper And Industrial Converted Products [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 3,028 | |
Estimated Total Cost | 3,028 | |
2015 Actions [Member] | Severance and Termination Benefits [Member] | Corporate [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 1,166 | |
Estimated Total Cost | 1,616 | |
2015 Actions [Member] | Asset Impairment / Disposal of Assets [Member] | Consumer Packaging [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | (7,331) | |
Estimated Total Cost | (7,331) | |
2015 Actions [Member] | Asset Impairment / Disposal of Assets [Member] | Paper And Industrial Converted Products [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 2 | |
Estimated Total Cost | 2 | |
2015 Actions [Member] | Other Costs [Member] | Consumer Packaging [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 75 | |
Estimated Total Cost | 175 | |
2015 Actions [Member] | Other Costs [Member] | Paper And Industrial Converted Products [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 8 | |
Estimated Total Cost | 8 | |
2014 Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 342 | 1,399 |
Total Incurred to Date | 15,621 | |
Estimated Total Cost | 15,821 | |
2014 Actions [Member] | Severance and Termination Benefits [Member] | Consumer Packaging [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 0 | 650 |
Total Incurred to Date | 850 | |
Estimated Total Cost | 850 | |
2014 Actions [Member] | Severance and Termination Benefits [Member] | Display and Packaging [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 0 | 0 |
Total Incurred to Date | 594 | |
Estimated Total Cost | 594 | |
2014 Actions [Member] | Severance and Termination Benefits [Member] | Paper And Industrial Converted Products [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 99 | 265 |
Total Incurred to Date | 3,376 | |
Estimated Total Cost | 3,376 | |
2014 Actions [Member] | Severance and Termination Benefits [Member] | Protective Solutions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | (32) | 0 |
Total Incurred to Date | 729 | |
Estimated Total Cost | 729 | |
2014 Actions [Member] | Asset Impairment / Disposal of Assets [Member] | Consumer Packaging [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 0 | 0 |
Total Incurred to Date | 2,446 | |
Estimated Total Cost | 2,446 | |
2014 Actions [Member] | Asset Impairment / Disposal of Assets [Member] | Paper And Industrial Converted Products [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 0 | 473 |
Total Incurred to Date | 781 | |
Estimated Total Cost | 781 | |
2014 Actions [Member] | Asset Impairment / Disposal of Assets [Member] | Protective Solutions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 33 | 0 |
Total Incurred to Date | 368 | |
Estimated Total Cost | 368 | |
2014 Actions [Member] | Other Costs [Member] | Consumer Packaging [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 32 | 11 |
Total Incurred to Date | 5,278 | |
Estimated Total Cost | 5,328 | |
2014 Actions [Member] | Other Costs [Member] | Display and Packaging [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 0 | 0 |
Total Incurred to Date | 5 | |
Estimated Total Cost | 5 | |
2014 Actions [Member] | Other Costs [Member] | Paper And Industrial Converted Products [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 115 | 0 |
Total Incurred to Date | 762 | |
Estimated Total Cost | 812 | |
2014 Actions [Member] | Other Costs [Member] | Protective Solutions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 95 | 0 |
Total Incurred to Date | 432 | |
Estimated Total Cost | 532 | |
2013 and Earlier Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 150 | 593 |
2013 and Earlier Actions [Member] | Consumer Packaging [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 0 | (1) |
2013 and Earlier Actions [Member] | Display and Packaging [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 0 | 247 |
2013 and Earlier Actions [Member] | Paper And Industrial Converted Products [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | 150 | 296 |
2013 and Earlier Actions [Member] | Protective Solutions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring/Asset impairment | $ 0 | $ 51 |
Restructuring and Asset Impai43
Restructuring and Asset Impairment - Restructuring Accrual Activity for Given Years (Details) $ in Thousands | 3 Months Ended |
Mar. 29, 2015USD ($) | |
2015 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | $ 0 |
Current year charges | (851) |
Cash receipts/(payments) | 26,966 |
Asset write downs/disposals | (21,799) |
Foreign currency translation | (78) |
Liability, Ending Balance | 4,238 |
2014 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 1,322 |
Current year charges | 437 |
Adjustments | (95) |
Cash receipts/(payments) | (1,141) |
Asset write downs/disposals | (33) |
Foreign currency translation | (26) |
Liability, Ending Balance | 464 |
Severance and Termination Benefits [Member] | 2015 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 0 |
Current year charges | 6,395 |
Cash receipts/(payments) | (2,079) |
Foreign currency translation | (78) |
Liability, Ending Balance | 4,238 |
Severance and Termination Benefits [Member] | 2014 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 859 |
Current year charges | 111 |
Adjustments | (44) |
Cash receipts/(payments) | (451) |
Foreign currency translation | (11) |
Liability, Ending Balance | 464 |
Asset Impairment / Disposal of Assets [Member] | 2015 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 0 |
Current year charges | (7,329) |
Cash receipts/(payments) | 29,128 |
Asset write downs/disposals | (21,799) |
Liability, Ending Balance | 0 |
Asset Impairment / Disposal of Assets [Member] | 2014 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 0 |
Current year charges | 33 |
Adjustments | 0 |
Cash receipts/(payments) | 0 |
Asset write downs/disposals | (33) |
Liability, Ending Balance | 0 |
Other Costs [Member] | 2015 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 0 |
Current year charges | 83 |
Cash receipts/(payments) | (83) |
Foreign currency translation | 0 |
Liability, Ending Balance | 0 |
Other Costs [Member] | 2014 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 463 |
Current year charges | 293 |
Adjustments | (51) |
Cash receipts/(payments) | (690) |
Foreign currency translation | (15) |
Liability, Ending Balance | $ 0 |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax, beginning balance | $ (608,851) | [1] | $ (369,869) |
Other comprehensive income/(loss) before reclassifications | (64,025) | (5,986) | |
Amounts reclassified from accumulated other comprehensive loss | (237) | ||
Net current-period other comprehensive income/ (loss) | (57,918) | (2,926) | |
Accumulated other comprehensive income (loss), net of tax, ending balance | (666,769) | (372,795) | |
Net Income [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive loss | 6,344 | 3,049 | |
Fixed Assets [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive loss | (237) | 11 | |
Gains and Losses on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax, beginning balance | (5,962) | (262) | |
Other comprehensive income/(loss) before reclassifications | (1,039) | 1,350 | |
Net current-period other comprehensive income/ (loss) | (1,205) | 236 | |
Accumulated other comprehensive income (loss), net of tax, ending balance | (7,167) | (26) | |
Gains and Losses on Cash Flow Hedges [Member] | Net Income [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive loss | 71 | (1,125) | |
Gains and Losses on Cash Flow Hedges [Member] | Fixed Assets [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive loss | (237) | 11 | |
Defined Benefit Pension Items [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax, beginning balance | (475,286) | (344,622) | |
Other comprehensive income/(loss) before reclassifications | 0 | 0 | |
Net current-period other comprehensive income/ (loss) | 6,273 | 4,174 | |
Accumulated other comprehensive income (loss), net of tax, ending balance | (469,013) | (340,448) | |
Defined Benefit Pension Items [Member] | Net Income [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive loss | 6,273 | 4,174 | |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax, beginning balance | (127,603) | (24,985) | |
Other comprehensive income/(loss) before reclassifications | (62,986) | (7,336) | |
Net current-period other comprehensive income/ (loss) | (62,986) | (7,336) | |
Accumulated other comprehensive income (loss), net of tax, ending balance | $ (190,589) | $ (32,321) | |
[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 Comprehensi45
Accumulated Other Comprehensive Loss - Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | $ 1,206,052 | $ 1,190,032 |
Cost of sales | (985,662) | (980,271) |
Selling, general and administrative | (96,665) | (123,750) |
Income before income taxes | 110,863 | 71,376 |
Tax benefit | (26,221) | (22,511) |
Net of tax | 84,642 | 48,865 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net of tax | (6,344) | (3,049) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Cash Flow Hedges [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | (97) | 1,580 |
Tax benefit | 26 | (455) |
Net of tax | (71) | 1,125 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Cash Flow Hedges [Member] | Foreign Exchange Contracts [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | 1,302 | (999) |
Cost of sales | 1,024 | 1,862 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Cash Flow Hedges [Member] | Commodity Contracts [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | (2,423) | 717 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Pension Items [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | (7,445) | (4,667) |
Selling, general and administrative | (2,481) | (1,556) |
Income before income taxes | (9,926) | (6,223) |
Tax benefit | 3,653 | 2,049 |
Net of tax | $ (6,273) | $ (4,174) |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unfavorable position amounts included in accumulated other comprehensive loss related to cash flow hedges | $ 11,721 | $ 9,617 |
Accumulated other comprehensive income loss cumulative changes in net gain loss from cash flow hedge effect after tax | 7,167 | 5,962 |
Cumulative tax benefit on Cash Flow Hedges included in Accumulated Other Comprehensive Loss | 4,554 | 3,655 |
Increase (decrease) in tax benefit on Cash Flow Hedges | 899 | |
Cumulative tax benefit on Defined Benefit Pensions | 253,187 | $ 256,840 |
Increase (decrease) in tax benefit on Defined Benefit Pensions | (3,653) | |
Non-Controlling Interests [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign currency translation adjustments | $ (631) |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets - Changes in Goodwill by Segment (Details) $ in Thousands | 3 Months Ended | |
Mar. 29, 2015USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | [1] | $ 1,177,962 |
Dispositions | (1,727) | |
Foreign currency translation | (29,550) | |
Other | 0 | |
Goodwill, ending balance | 1,146,685 | |
Consumer Packaging [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 508,582 | |
Dispositions | (1,727) | |
Foreign currency translation | (18,637) | |
Other | 0 | |
Goodwill, ending balance | 488,218 | |
Display and Packaging [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 204,629 | |
Dispositions | 0 | |
Foreign currency translation | 0 | |
Other | 0 | |
Goodwill, ending balance | 204,629 | |
Paper and Industrial Converted Products [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 243,586 | |
Dispositions | 0 | |
Foreign currency translation | (10,913) | |
Other | 0 | |
Goodwill, ending balance | 232,673 | |
Protective Solutions [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 221,165 | |
Dispositions | 0 | |
Foreign currency translation | 0 | |
Other | 0 | |
Goodwill, ending balance | $ 221,165 | |
[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 Intangible48
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 29, 2015 | Dec. 31, 2014 | |
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | $ 423,934 | $ 438,130 | |
Accumulated Amortization | (162,556) | (157,195) | |
Other Intangible Assets, net | 261,378 | 280,935 | [1] |
Patents [Member] | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 12,721 | 13,883 | |
Customer Lists [Member] | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 372,633 | 385,466 | |
Trade Names [Member] | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 19,246 | 19,366 | |
Proprietary Technology [Member] | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 17,739 | 17,786 | |
Land Use Rights [Member] | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 314 | 320 | |
Other [Member] | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | $ 1,281 | $ 1,309 | |
[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 Intangible49
Goodwill and Other Intangible Assets - Additional Information (Details) $ in Thousands | 3 Months Ended | |||
Mar. 29, 2015USD ($)facility | Mar. 30, 2014USD ($) | Dec. 31, 2014USD ($) | ||
Goodwill [Line Items] | ||||
Goodwill related to dispositions | $ 1,727 | |||
Goodwill | 1,146,685 | $ 1,177,962 | [1] | |
Aggregate amortization expenses | 8,150 | $ 6,863 | ||
Amortization expense on other intangible assets in 2015 | 33,900 | |||
Amortization expense on other intangible assets in 2016 | 32,600 | |||
Amortization expense on other intangible assets in 2017 | 31,900 | |||
Amortization expense on other intangible assets in 2018 | 31,300 | |||
Amortization expense on other intangible assets in 2019 | 29,500 | |||
Blowmolding [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | 119,000 | |||
Tubes and Cores/Paper - Brazil Reporting Unit [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | 2,800 | |||
Consumer Packaging Segment [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill related to dispositions | 1,727 | |||
Goodwill | 488,218 | 508,582 | ||
Display and Packaging [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill related to dispositions | 0 | |||
Goodwill | 204,629 | $ 204,629 | ||
Display and Packaging [Member] | Display and Packaging Reporting Unit [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 204,600 | |||
Minimum [Member] | ||||
Goodwill [Line Items] | ||||
Useful lives of other intangible assets | 3 years | |||
Maximum [Member] | ||||
Goodwill [Line Items] | ||||
Useful lives of other intangible assets | 40 years | |||
Customer Lists [Member] | ||||
Goodwill [Line Items] | ||||
Impairment charge | $ 3,516 | |||
Number of production facility | facility | 2 | |||
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Financial Instruments and Der50
Financial Instruments and Derivatives - Carrying Amount and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 29, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Long-term debt, net of current portion, Carrying Amount | $ 1,200,509 | $ 1,200,885 | [1] |
Long-term debt, net of current portion, Fair Value | $ 1,338,655 | $ 1,322,795 | |
[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 Der51
Financial Instruments and Derivatives - Additional Information (Details) $ in Thousands, MMBTU in Millions | 3 Months Ended | |
Mar. 29, 2015USD ($)MMBTUTtgal | Dec. 31, 2014USD ($) | |
Derivative [Line Items] | ||
Fair value of commodity cash flow hedges | $ (5,813) | $ (6,086) |
Commodity gain (loss) expected to be reclassified to the income statement during the next 12 months | (5,655) | |
Fair value of foreign currency cash flow hedges | (5,944) | (3,526) |
Amounts reclassified from accumulated other comprehensive loss | (237) | |
Foreign currency gain (loss) expected to be reclassified to the income statement during the next 12 months | (5,724) | |
Total fair value of other derivatives not designated as hedging instruments | $ (1,135) | $ (1,098) |
Natural Gas Swaps [Member] | ||
Derivative [Line Items] | ||
Approximate amount of commodity covered by swap contracts outstanding | MMBTU | 4.2 | |
Anticipated usage percentage covered by a swap contract for the current fiscal year | 85.00% | |
Anticipated usage percentage covered by a swap contract for the second succeeding fiscal year | 5.00% | |
Aluminum Swaps [Member] | ||
Derivative [Line Items] | ||
Anticipated usage percentage covered by a swap contract for the current fiscal year | 41.00% | |
Anticipated usage percentage covered by a swap contract for the second succeeding fiscal year | 1.00% | |
Approximate amount of commodity covered by swap contracts outstanding | t | 2,759 | |
Containers [Member] | ||
Derivative [Line Items] | ||
Approximate amount of commodity covered by swap contracts outstanding | T | 4,620 | |
Crude Oil [Member] | ||
Derivative [Line Items] | ||
Anticipated usage percentage covered by a swap contract for the current fiscal year | 11.00% | |
Derivative, Nonmonetary Notional Amount, Volume | gal | 360,000 |
Financial Instruments and Der52
Financial Instruments and Derivatives - Net Positions of Foreign Contracts (Details) - Mar. 29, 2015 € in Thousands, £ in Thousands, TRY in Thousands, RUB in Thousands, PLN in Thousands, NZD in Thousands, MXN in Thousands, COP in Thousands, CAD in Thousands, AUD in Thousands | COP | PLN | EUR (€) | AUD | CAD | RUB | TRY | GBP (£) | MXN | NZD |
Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Net Purchase / (Sales) position of foreign currency cash flow hedges | COP 13,112,256 | PLN 874 | € (2,783) | AUD (5,141) | CAD 45,175 | RUB 30,183 | TRY 5,262 | £ (769) | MXN 287,704 | NZD (2,499) |
Financial Instruments and Der53
Financial Instruments and Derivatives - Net Positions of Other Derivatives Contract (Details) - Mar. 29, 2015 € in Thousands, £ in Thousands, MXN in Thousands, COP in Thousands, CAD in Thousands | COP | EUR (€) | CAD | GBP (£) | MXN |
Derivatives Not Designated as Hedging Instruments [Member] | |||||
Derivative [Line Items] | |||||
Net Purchase / (Sales) position of other derivatives | COP 28,330,708 | € 6,847 | CAD 12,483 | £ (5,000) | MXN 193,849 |
Financial Instruments and Der54
Financial Instruments and Derivatives - Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 29, 2015 | Dec. 31, 2014 |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | Prepaid Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives instruments, assets | $ 0 | $ 0 |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives instruments, assets | 0 | 0 |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | Accrued Expenses and Other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives instruments, liabilities | (5,698) | (5,808) |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives instruments, liabilities | (115) | (278) |
Derivatives Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | Prepaid Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives instruments, assets | 1,179 | 574 |
Derivatives Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | Accrued Expenses and Other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives instruments, liabilities | (7,123) | (4,100) |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | Prepaid Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives instruments, assets | 92 | 68 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | Accrued Expenses and Other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives instruments, liabilities | $ (1,227) | $ (1,166) |
Financial Instruments and Der55
Financial Instruments and Derivatives - Effect of Derivative Instruments on Financial Performance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Foreign Exchange Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 146 | $ (776) |
Foreign Exchange Contracts [Member] | Net Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) | 1,302 | (999) |
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 |
Foreign Exchange Contracts [Member] | Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) | 1,024 | 1,862 |
Commodity Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | (2,110) | 2,676 |
Commodity Contracts [Member] | Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) | (2,423) | 717 |
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | 40 | (20) |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized | (45) | 37 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | Selling, General and Administrative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized | $ 8 | $ 56 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 29, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 951 | $ 944 |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (5,813) | (6,086) |
Derivatives Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (5,944) | (3,526) |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (1,135) | (1,098) |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 951 | 944 |
Level 1 [Member] | Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 1 [Member] | Derivatives Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 1 [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Level 2 [Member] | Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (5,813) | (6,086) |
Level 2 [Member] | Derivatives Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (5,944) | (3,526) |
Level 2 [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (1,135) | (1,098) |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Level 3 [Member] | Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 3 [Member] | Derivatives Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 3 [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ 0 | $ 0 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Retirement Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 5,253 | $ 5,167 |
Interest cost | 16,933 | 17,897 |
Expected return on plan assets | (22,726) | (22,753) |
Amortization of net transition obligation | 40 | 99 |
Amortization of prior service cost (credit) | 180 | 163 |
Amortization of net actuarial loss | 9,728 | 6,302 |
Net periodic benefit cost (income) | 9,408 | 6,875 |
Retiree Health and Life Insurance Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 178 | 173 |
Interest cost | 222 | 257 |
Expected return on plan assets | (393) | (387) |
Amortization of prior service cost (credit) | (25) | (337) |
Amortization of net actuarial loss | (5) | (24) |
Net periodic benefit cost (income) | $ (23) | $ (318) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to defined benefit retirement and retiree health and life insurance plans | $ 17,017,000 | $ 43,515,000 |
Retiree Health and Life Insurance Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to defined benefit retirement and retiree health and life insurance plans | 4,152,000 | 31,466,000 |
Projected contributions to retirement plan | 19,000,000 | |
Sonoco Investment and Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to defined benefit retirement and retiree health and life insurance plans | 12,865,000 | 9,290,000 |
Projected contributions to retirement plan | 0 | |
Recognized expense related to the plan | $ 3,627,000 | $ 2,556,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 2,300 | |
Effective tax rate | 23.70% | 31.50% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Mar. 29, 2015Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Reporting - Segment Fin
Segment Reporting - Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,206,052 | $ 1,190,032 |
Income before interest and income taxes | 124,084 | 84,019 |
Restructuring/Asset impairment charges | 359 | (1,992) |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,206,052 | 1,190,032 |
Operating Segments [Member] | Consumer Packaging [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 519,877 | 464,925 |
Income before interest and income taxes | 54,028 | 48,183 |
Operating Segments [Member] | Paper And Industrial Converted Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 422,311 | 455,610 |
Income before interest and income taxes | 27,797 | 29,750 |
Operating Segments [Member] | Display and Packaging [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 145,786 | 157,428 |
Income before interest and income taxes | 838 | 2,815 |
Operating Segments [Member] | Protective Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 118,078 | 112,069 |
Income before interest and income taxes | 9,685 | 5,287 |
Intersegment Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 30,236 | 28,327 |
Intersegment Sales [Member] | Consumer Packaging [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,680 | 1,033 |
Intersegment Sales [Member] | Paper And Industrial Converted Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 27,551 | 26,345 |
Intersegment Sales [Member] | Display and Packaging [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 397 | 383 |
Intersegment Sales [Member] | Protective Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 608 | 566 |
Segment Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Restructuring/Asset impairment charges | 359 | (1,992) |
Other, net | 31,377 | $ (24) |
Operating Units 2 - 5 [Member] | ||
Segment Reporting Information [Line Items] | ||
Increase (decrease) due to revision of estimates | $ 32,543 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Apr. 07, 2015USD ($) | Sep. 15, 2014USD ($) | Mar. 29, 2015USD ($)defendant | Mar. 29, 2015USD ($) | Dec. 31, 2014USD ($) | Nov. 08, 2011USD ($) |
Site Contingency [Line Items] | ||||||
Environmental accrual | $ 26,348,000 | $ 26,348,000 | $ 59,253,000 | |||
Maximum penalty per day | $ 0.75 | |||||
Operating Units 2 - 5 [Member] | ||||||
Site Contingency [Line Items] | ||||||
Increase (decrease) due to revision of estimates | (32,543,000) | |||||
U.S. Mills [Member] | ||||||
Site Contingency [Line Items] | ||||||
Environmental accrual | 37,775,000 | |||||
Environmental contingencies future related cost, high estimate | 121,000,000 | |||||
U.S. Mills [Member] | Lower Fox River [Member] | ||||||
Site Contingency [Line Items] | ||||||
Number of defendants | defendant | 5 | |||||
U.S. Mills [Member] | Operating Units 2 - 5 [Member] | ||||||
Site Contingency [Line Items] | ||||||
Environmental accrual | $ 5,000,000 | 5,000,000 | ||||
Environmental remediation spent | 232,000 | |||||
Tegrant Holding Corporation [Member] | ||||||
Site Contingency [Line Items] | ||||||
Environmental accrual | $ 18,552,000 | 18,552,000 | 18,635,000 | $ 18,850,000 | ||
Increase (decrease) due to revision of estimates | $ 324,000 | |||||
Payment towards remediation of sites | 622,000 | |||||
Appvion, Inc. [Member] | U.S. Mills [Member] | Lower Fox River [Member] | ||||||
Site Contingency [Line Items] | ||||||
Number of defendants | defendant | 8 | |||||
Total estimated possible claim | $ 200,000,000 | 200,000,000 | ||||
Total estimated possible claim, per defendant | $ 16,000,000 | $ 16,000,000 | ||||
Subsequent Event [Member] | U.S. Mills [Member] | Lower Fox River [Member] | ||||||
Site Contingency [Line Items] | ||||||
Settlement amount | $ 14,700,000 |