Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 27, 2015 | Oct. 15, 2015 | |
Document Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 27, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
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 | 100,938,184 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 | [1] |
Current Assets | |||
Cash and cash equivalents | $ 193,423 | $ 161,168 | |
Trade accounts receivable, net of allowances | 688,476 | 653,737 | |
Other receivables | 38,063 | 38,580 | |
Inventories: | |||
Finished and in process | 145,835 | 151,150 | |
Materials and supplies | 250,974 | 269,126 | |
Prepaid expenses | 53,920 | 61,071 | |
Deferred income taxes | 32,481 | 38,957 | |
Total Current Assets | 1,403,172 | 1,373,789 | |
Property, Plant and Equipment, Net | 1,102,472 | 1,148,607 | |
Goodwill | 1,145,919 | 1,177,962 | |
Other Intangible Assets, Net | 256,143 | 280,935 | |
Long-term Deferred Income Taxes | 44,594 | 45,442 | |
Other Assets | 161,336 | 167,176 | |
Total Assets | 4,113,636 | 4,193,911 | |
Current Liabilities | |||
Payable to suppliers | 510,173 | 517,228 | |
Accrued expenses and other | 324,401 | 334,086 | |
Notes payable and current portion of long-term debt | 129,022 | 52,280 | |
Accrued taxes | 11,117 | 8,599 | |
Total Current Liabilities | 974,713 | 912,193 | |
Long-term Debt, Net of Current Portion | 1,073,043 | 1,200,885 | |
Pension and Other Postretirement Benefits | 438,724 | 444,231 | |
Deferred Income Taxes | 89,813 | 91,157 | |
Other Liabilities | $ 38,057 | $ 41,598 | |
Commitments and Contingencies | |||
Sonoco Shareholders’ Equity | |||
Authorized 300,000 shares 100,937 and 100,603 shares issued and outstanding at September 27, 2015 and December 31, 2014, respectively | $ 7,175 | $ 7,175 | |
Capital in excess of stated value | 399,736 | 396,980 | |
Accumulated other comprehensive loss | (710,248) | (608,851) | |
Retained earnings | 1,783,384 | 1,692,891 | |
Total Sonoco Shareholders’ Equity | 1,480,047 | 1,488,195 | |
Noncontrolling Interests | 19,239 | 15,652 | |
Total Equity | 1,499,286 | 1,503,847 | |
Total Liabilities and Equity | $ 4,113,636 | $ 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 | Sep. 27, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, number of shares authorized | 300,000,000 | 300,000,000 |
Common stock, number of shares issued | 100,937,000 | 100,603,000 |
Common stock, number of shares outstanding | 100,937,000 | 100,603,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | Sep. 10, 2015 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 |
Income Statement [Abstract] | |||||
Net sales | $ 1,242,592 | $ 1,262,503 | $ 3,697,234 | $ 3,700,151 | |
Cost of sales | 1,013,219 | 1,040,059 | 3,007,155 | 3,038,996 | |
Gross profit | 229,373 | 222,444 | 690,079 | 661,155 | |
Selling, general and administrative expenses | 130,341 | 110,507 | 357,893 | 360,712 | |
Restructuring/Asset impairment charges | 19,551 | 5,908 | 29,637 | 11,571 | |
Income before interest and income taxes | 79,481 | 106,029 | 302,549 | 288,872 | |
Interest expense | 14,340 | 13,620 | 42,352 | 40,574 | |
Interest income | 653 | 702 | 1,843 | 1,878 | |
Income before income taxes | 65,794 | 93,111 | 262,040 | 250,176 | |
Provision for income taxes | 24,775 | 27,539 | 75,019 | 79,322 | |
Income before equity in earnings of affiliates | 41,019 | 65,572 | 187,021 | 170,854 | |
Equity in earnings of affiliates, net of tax | 2,976 | 2,294 | 7,291 | 6,896 | |
Net income | 43,995 | 67,866 | 194,312 | 177,750 | |
Net (income) attributable to noncontrolling interests | (81) | (810) | (239) | (858) | |
Net income attributable to Sonoco | $ 43,914 | $ 67,056 | $ 194,073 | $ 176,892 | |
Weighted average common shares outstanding: | |||||
Basic (in shares) | 101,548 | 102,128 | 101,454 | 102,451 | |
Diluted (in shares) | 102,405 | 103,087 | 102,387 | 103,425 | |
Net income attributable to Sonoco: | |||||
Basic (in usd per share) | $ 0.43 | $ 0.66 | $ 1.91 | $ 1.73 | |
Diluted (in usd per share) | 0.43 | 0.65 | 1.90 | 1.71 | |
Cash dividends (usd per share) | $ 0.35 | $ 0.35 | $ 0.32 | $ 1.02 | $ 0.95 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 43,995 | $ 67,866 | $ 194,312 | $ 177,750 |
Other comprehensive income/(loss): | ||||
Foreign currency translation adjustments | (55,520) | (47,645) | (114,766) | (46,543) |
Changes in defined benefit plans, net of tax | 6,767 | 4,386 | 11,915 | 11,903 |
Changes in derivative financial instruments, net of tax | 210 | (1,229) | 1,454 | 80 |
Other comprehensive income/(loss) | (48,543) | (44,488) | (101,397) | (34,560) |
Comprehensive income/(loss) | (4,548) | 23,378 | 92,915 | 143,190 |
Net (income) attributable to noncontrolling interests | (81) | (810) | (239) | (858) |
Other comprehensive loss attributable to noncontrolling interests | 4,413 | 250 | 4,574 | 115 |
Comprehensive (loss)/income attributable to Sonoco | $ (216) | $ 22,818 | $ 97,250 | $ 142,447 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | Dec. 31, 2014 | |||
Cash Flows from Operating Activities: | |||||||
Net income | $ 43,995 | $ 67,866 | $ 194,312 | $ 177,750 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Asset impairment | 12,065 | 2,730 | 14,773 | 4,139 | |||
Depreciation, depletion and amortization | 157,216 | 144,728 | |||||
Gain on reversal of Fox River environmental reserves | (32,543) | 0 | |||||
Share-based compensation expense | 4,783 | 11,789 | |||||
Equity in earnings of affiliates | (2,976) | (2,294) | (7,291) | (6,896) | |||
Cash dividends from affiliated companies | 5,480 | 5,494 | |||||
Net gain on disposition of assets | (6,473) | (1,173) | |||||
Pension and postretirement plan expense | 42,844 | 29,780 | |||||
Pension and postretirement plan contributions | (29,416) | (58,421) | |||||
Tax effect of share-based compensation exercises | 3,515 | 2,341 | |||||
Excess tax benefit of share-based compensation | (3,525) | (2,511) | |||||
Net (decrease)/increase in deferred taxes | (7,709) | 16,715 | |||||
Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: | |||||||
Trade accounts receivable | (70,794) | (100,006) | |||||
Inventories | (11,982) | 1,018 | |||||
Payable to suppliers | 26,581 | 28,362 | |||||
Prepaid expenses | (9,053) | (10,772) | |||||
Accrued expenses | 45,346 | 24,743 | |||||
Income taxes payable and other income tax items | 3,717 | 12,406 | |||||
Fox River environmental reserve spending | (796) | (15,000) | |||||
Other assets and liabilities | (845) | 2,911 | |||||
Net cash provided by operating activities | 318,140 | 267,397 | |||||
Cash Flows from Investing Activities: | |||||||
Purchase of property, plant and equipment | (140,869) | (135,287) | |||||
Proceeds from the sale of assets | (17,447) | (10,964) | |||||
Proceeds from the sale of assets | 31,310 | 6,451 | |||||
Investment in affiliates and other, net | (2,773) | (4,520) | |||||
Net cash used in investing activities | (129,779) | (144,320) | |||||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of debt | 57,311 | 30,526 | |||||
Principal repayment of debt | (105,388) | (30,267) | |||||
Net increase in commercial paper | 0 | 36,000 | |||||
Net decrease in outstanding checks | (2,609) | (712) | |||||
Excess tax benefit of share-based compensation | 3,525 | 2,511 | |||||
Cash dividends | (102,702) | (96,446) | |||||
Shares acquired | (7,729) | (48,731) | |||||
Shares issued | 1,307 | 2,482 | |||||
Net cash used in financing activities | (156,285) | (104,637) | |||||
Effects of Exchange Rate Changes on Cash | 179 | (4,451) | |||||
Net Increase in Cash and Cash Equivalents | 32,255 | 13,989 | |||||
Cash and cash equivalents at beginning of period | 161,168 | [1] | 217,567 | $ 217,567 | |||
Cash and cash equivalents at end of period | $ 193,423 | $ 231,556 | $ 193,423 | $ 231,556 | $ 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 | 9 Months Ended |
Sep. 27, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement to Previously Issued Financial Statements | Restatement of Previously Issued Financial Statements Misstatements at the Irapuato Packaging Center As previously reported in its 2014 amended Annual Report on Form 10-K/A filed on August 26, 2015, the Company discovered certain accounting irregularities at a contract packaging center in Irapuato, Mexico, part of the Display and Packaging segment, in July 2015, in the course of closing its books for the second quarter of 2015. 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. 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, 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. On August 26, 2015, the Company also filed a Quarterly Report on Form 10-Q for the period ended June 28, 2015 in which it restated the previously issued condensed consolidated financial statements for the three- and six-month periods ended June 29, 2014. On August 28, 2015, the Company filed an amended Quarterly Report on Form 10-Q/A for the period ended March 29, 2015 in which it restated the previously issued condensed consolidated financial statements for the three-month periods ended March 29, 2015 and March 30, 2014. Restated condensed consolidated financial statements for the three- and nine-month periods ended September 28, 2014, along with a reconciliation of the amounts previously reported to the restated amounts, are provided below. CONDENSED CONSOLIDATED STATEMENT OF INCOME Three Months Ended September 28, 2014 Effect of Restatement September 28, 2014 Net sales $ 1,263,574 $ (1,071 ) $ 1,262,503 Cost of sales 1,035,910 4,149 1,040,059 Gross profit 227,664 (5,220 ) 222,444 Selling, general and administrative expenses 110,507 — 110,507 Restructuring/Asset impairment charges 5,908 — 5,908 Income before interest and income taxes 111,249 (5,220 ) 106,029 Interest expense 13,620 — 13,620 Interest income 702 — 702 Income before income taxes 98,331 (5,220 ) 93,111 Provision for income taxes 28,891 (1,352 ) 27,539 Income before equity in earnings of affiliates 69,440 (3,868 ) 65,572 Equity in earnings of affiliates, net of tax 2,294 — 2,294 Net income $ 71,734 $ (3,868 ) $ 67,866 Net (income) attributable to noncontrolling interests (810 ) — (810 ) Net income attributable to Sonoco $ 70,924 $ (3,868 ) $ 67,056 Weighted average common shares outstanding: Basic 102,128 — 102,128 Diluted 103,087 — 103,087 Per common share: Net income attributable to Sonoco: Basic $ 0.69 $ (0.03 ) $ 0.66 Diluted $ 0.69 $ (0.04 ) $ 0.65 Cash dividends $ 0.32 $ — $ 0.32 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended September 28, 2014 as Previously Reported Effect of Restatement September 28, 2014 as Restated Net income $ 71,734 $ (3,868 ) $ 67,866 Other comprehensive income/(loss): Foreign currency translation adjustments (48,018 ) 373 (47,645 ) Changes in defined benefit plans, net of tax 4,386 — 4,386 Changes in derivative financial instruments, net of tax (1,229 ) — (1,229 ) Other comprehensive income/(loss) (44,861 ) 373 (44,488 ) Comprehensive income 26,873 (3,495 ) 23,378 Net (income) attributable to noncontrolling interests (810 ) — (810 ) Other comprehensive loss attributable to noncontrolling interests 250 — 250 Comprehensive income attributable to Sonoco $ 26,313 $ (3,495 ) $ 22,818 CONDENSED CONSOLIDATED STATEMENT OF INCOME Nine Months Ended September 28, 2014 Effect of Restatement September 28, 2014 Net sales $ 3,696,580 $ 3,571 $ 3,700,151 Cost of sales 3,024,876 14,120 3,038,996 Gross profit 671,704 (10,549 ) 661,155 Selling, general and administrative expenses 360,712 — 360,712 Restructuring/Asset impairment charges 11,571 — 11,571 Income before interest and income taxes 299,421 (10,549 ) 288,872 Interest expense 40,574 — 40,574 Interest income 1,878 — 1,878 Income before income taxes 260,725 (10,549 ) 250,176 Provision for income taxes 82,053 (2,731 ) 79,322 Income before equity in earnings of affiliates 178,672 (7,818 ) 170,854 Equity in earnings of affiliates, net of tax 6,896 — 6,896 Net income $ 185,568 $ (7,818 ) $ 177,750 Net (income) attributable to noncontrolling interests (858 ) — (858 ) Net income attributable to Sonoco $ 184,710 $ (7,818 ) $ 176,892 Weighted average common shares outstanding: Basic 102,451 — 102,451 Diluted 103,425 — 103,425 Per common share: Net income attributable to Sonoco: Basic $ 1.80 $ (0.07 ) $ 1.73 Diluted $ 1.79 $ (0.08 ) $ 1.71 Cash dividends $ 0.95 $ — $ 0.95 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Nine Months Ended September 28, 2014 as Previously Reported Effect of Restatement September 28, 2014 as Restated Net income $ 185,568 $ (7,818 ) $ 177,750 Other comprehensive income/(loss): Foreign currency translation adjustments (46,854 ) 311 (46,543 ) Changes in defined benefit plans, net of tax 387 11,516 11,903 Changes in derivative financial instruments, net of tax 80 — 80 Other comprehensive income/(loss) (46,387 ) 11,827 (34,560 ) Comprehensive income 139,181 4,009 143,190 Net (income) attributable to noncontrolling interests (858 ) — (858 ) Other comprehensive loss attributable to noncontrolling interests 115 — 115 Comprehensive income attributable to Sonoco $ 138,438 $ 4,009 $ 142,447 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Nine Months Ended September 28, 2014 as Previously Reported Effect of Restatement September 28, 2014 as Restated Cash Flows from Operating Activities: Net income $ 185,568 $ (7,818 ) $ 177,750 Adjustments to reconcile net income to net cash provided by operating activities: Asset impairment 4,139 — 4,139 Depreciation, depletion and amortization 144,728 — 144,728 Gain on reversal of Fox River environmental reserves — — — Share-based compensation expense 11,789 — 11,789 Equity in earnings of affiliates (6,896 ) — (6,896 ) Cash dividends from affiliated companies 5,494 — 5,494 Gain on disposition of assets (1,173 ) — (1,173 ) Pension and postretirement plan expense 29,780 — 29,780 Pension and postretirement plan contributions (58,421 ) — (58,421 ) Tax effect of share-based compensation exercises 2,341 — 2,341 Excess tax benefit of share-based compensation (2,511 ) — (2,511 ) Net change in deferred taxes 18,076 (1,361 ) 16,715 Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: Trade accounts receivable (102,862 ) 2,856 (100,006 ) Inventories 1,018 — 1,018 Payable to suppliers 28,661 (299 ) 28,362 Prepaid expenses (10,772 ) — (10,772 ) Accrued expenses 20,823 3,920 24,743 Income taxes payable and other income tax items 13,776 (1,370 ) 12,406 Fox River environmental reserve spending (15,000 ) — (15,000 ) Other assets and liabilities (1,161 ) 4,072 2,911 Net cash provided by operating activities 267,397 — 267,397 Cash Flows from Investing Activities: Purchase of property, plant and equipment (135,287 ) — (135,287 ) Cost of acquisitions, net of cash acquired (10,964 ) — (10,964 ) Proceeds from the sale of assets 6,451 — 6,451 Investment in affiliates and other, net (4,520 ) — (4,520 ) Net cash used in investing activities (144,320 ) — (144,320 ) Cash Flows from Financing Activities: Proceeds from issuance of debt 30,526 — 30,526 Principal repayment of debt (30,267 ) — (30,267 ) Net increase in commercial paper 36,000 — 36,000 Net decrease in outstanding checks (712 ) — (712 ) Excess tax benefit of share-based compensation 2,511 — 2,511 Cash dividends (96,446 ) — (96,446 ) Shares acquired (48,731 ) — (48,731 ) Shares issued 2,482 — 2,482 Net cash used in financing activities (104,637 ) — (104,637 ) Effects of Exchange Rate Changes on Cash (4,451 ) — (4,451 ) Net Decrease in Cash and Cash Equivalents 13,989 — 13,989 Cash and cash equivalents at beginning of period 217,567 — 217,567 Cash and cash equivalents at end of period $ 231,556 $ — $ 231,556 |
Basis of Interim Presentation
Basis of Interim Presentation | 9 Months Ended |
Sep. 27, 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 and nine months ended September 27, 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- and nine-month periods ended September 27, 2015 and September 28, 2014 included in this Form 10-Q, PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report dated October 28, 2015 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 | 9 Months Ended |
Sep. 27, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (FASB) issued ASU 2015-11, "Simplifying the Measurement of Inventory." ASU 2015-11 requires that inventory be measured at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventory measured using last-in, first-out or the retail inventory method are excluded from the scope of this update which is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 31, 2017. The new guidance does not represent a change from the Company’s current policy to measure inventory at lower of cost or net realizable value; therefore, implementation of ASU 2015-11 will not have a material impact on the Company's consolidated financial statements. In April 2015, the 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. Among other changes, ASU 2014-09 changes the manner in which variable consideration is recognized, requires recognition of the time value of money when payment terms exceed one year, provides clarification on accounting for contract costs, and expands disclosure requirements. The effective date for implementation of ASU 2014-09 has been deferred and is now effective for reporting periods beginning after December 15, 2017. The Company is still assessing the impact of ASU 2014-09 on its consolidated financial statements. During the three- and nine- month periods ended September 27, 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 September 27, 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 | 9 Months Ended |
Sep. 27, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On September 21, 2015, the Company acquired the high-density wood plug business from Smith Family Companies, Inc. Total consideration for the acquisition was $2,850 , including cash of $1,750 and a contingent purchase liability of $1,100 . The purchase price was allocated to the intangible assets acquired, including $2,750 to customer lists and $100 to a non-compete agreement. The Company will manufacture these wood plugs at its existing facility in Hartselle, Alabama. The acquisition, part of the Company's Paper and Industrial Converted Products segment, is expected to add approximately $3,700 of annual sales. The contingent liability will be paid within 30 days of the second anniversary of the acquisition if targeted levels of sales are maintained. On April 1, 2015, the Company completed the acquisition of a 67% controlling interest in Graffo Paranaense de Embalagens S/A ("Graffo"), a flexible packaging business located in Brazil. Graffo serves the confectionery, dairy, pharmaceutical and tobacco markets in Brazil with approximately 230 employees. It is expected to generate annual sales of approximately $30,000 . Total consideration paid for Graffo was approximately $18,334 , including cash of $15,697 , and debt assumed totaling $2,637 . The allocation of the purchase price of Graffo to the tangible and intangible assets acquired and liabilities assumed was based on the Company's preliminary estimates of their fair value, based on the information currently available. In conjunction with this acquisition, the Company has preliminarily recorded net tangible assets of $5,438 , goodwill of $10,147 (all of which is expected to be tax deductible), identifiable intangibles of $10,671 , and a noncontrolling interest of $7,922 . Factors comprising goodwill include the ability to leverage product offerings across a broader customer base and the value of the assembled workforce. The Company is continuing to finalize its valuation of certain assets and liabilities, including, but not limited to, identifiable intangibles and deferred taxes, and expects to complete the valuation during the fourth 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 fourth 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 Annual Report on Form 10-K 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. During the first half of 2015, 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 long-term deferred income tax liabilities and goodwill by $4,974 at December 31, 2014. The amounts shown in the Company’s Condensed Consolidated Balance Sheet as of December 31, 2014, 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 first anniversary of the acquisition. Acquisition-related costs of $288 and $1,680 were incurred in the three months ended September 27, 2015 and September 28, 2014 , respectively. These costs totaled $3,536 and $2,950 for the nine months ended September 27, 2015 and September 28, 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 | 9 Months Ended |
Sep. 27, 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 Nine Months Ended September 27, September 28, September 27, September 28, (as Restated) (as Restated) Numerator: Net income attributable to Sonoco $ 43,914 $ 67,056 $ 194,073 $ 176,892 Denominator: Weighted average common shares outstanding: Basic 101,548,000 102,128,000 101,454,000 102,451,000 Dilutive effect of stock-based compensation 857,000 959,000 933,000 974,000 Diluted 102,405,000 103,087,000 102,387,000 103,425,000 Reported net income attributable to Sonoco per common share: Basic $ 0.43 $ 0.66 $ 1.91 $ 1.73 Diluted $ 0.43 $ 0.65 $ 1.90 $ 1.71 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 1,165,126 and 718,845 during the three- and nine- month periods ended September 27, 2015 , respectively, and 638,160 and 640,901 during the three- and nine- month periods ended September 28, 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 nine months ended September 27, 2015 , no additional shares were purchased; accordingly, at September 27, 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 169,590 shares in the nine months ended September 27, 2015 at a cost of $7,729 , and 87,583 shares in the nine months ended September 28, 2014 at a cost of $3,718 . Dividend Declarations On July 14, 2015 , the Board of Directors declared a regular quarterly dividend of $0.35 per share. This dividend was paid on September 10, 2015 to all shareholders of record as of August 14, 2015 . On October 19, 2015 , the Board of Directors declared a regular quarterly dividend of $0.35 per share. This dividend is payable December 10, 2015 to all shareholders of record as of November 13, 2015 . |
Restructuring and Asset Impairm
Restructuring and Asset Impairment | 9 Months Ended |
Sep. 27, 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 September 27, 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: 2015 2014 Third Quarter Nine Months Third Quarter Nine Months Restructuring/Asset impairment: 2015 Actions $ 7,125 $ 15,033 $ — $ — 2014 Actions 418 2,027 1,928 6,256 2013 and Earlier Actions (57 ) 512 1,250 2,585 Other asset impairments 12,065 12,065 2,730 2,730 Restructuring/Asset impairment charges $ 19,551 $ 29,637 $ 5,908 $ 11,571 Income tax benefit $ (1,574 ) $ (16,850 ) $ (1,954 ) $ (3,342 ) Costs attributable to noncontrolling interests, net of tax (5 ) (75 ) (11 ) (26 ) Total impact of restructuring/asset impairment charges, net of tax $ 17,972 $ 12,712 $ 3,943 $ 8,203 Pre-tax restructuring and asset impairment charges are included in “Restructuring/Asset impairment charges” in the Condensed Consolidated Statements of Income. When recognizable in accordance with GAAP, the Company expects to recognize future additional charges totaling approximately $6,500 in connection with announced restructuring actions, and believes that the majority of these charges will be incurred by the end of 2015 and paid by mid-2016. 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 four rigid paper facilities - two in the United States, one in Canada, and one in the United Kingdom (part of the Consumer Packaging segment). The Company also closed a production line at one of its thermoforming plants in the United States (part of the Consumer Packaging segment) and sold a portion of its metal ends and closures business in the United States (part of the Consumer Packaging segment). The Company announced the closure of a Tubes and Cores plant (part of the Paper and Industrial Converted Products division) and a printed backer card facility (part of the Display and Packaging segment) in the United States. In addition, approximately 210 positions were eliminated in the first three quarters of 2015 in conjunction with the Company's announced ongoing o rganizational effectiveness efforts. 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 Third Quarter 2015 Total Estimated Severance and Termination Benefits Consumer Packaging $ 2,997 $ 7,465 $ 11,665 Display and Packaging 576 780 880 Paper and Industrial Converted Products $ 2,300 $ 7,362 $ 7,562 Protective Solutions 39 39 39 Corporate 210 2,409 2,759 Asset Impairment / Disposal of Assets Consumer Packaging (53 ) (4,883 ) (4,883 ) Display and Packaging 194 211 211 Paper and Industrial Converted Products 230 451 451 Other Costs Consumer Packaging 441 936 1,936 Display and Packaging 89 89 289 Paper and Industrial Converted Products 102 163 413 Corporate — 11 11 Total Charges and Adjustments $ 7,125 $ 15,033 $ 21,333 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/(income) 18,055 (4,221 ) 1,199 15,033 Cash receipts/(payments) (7,284 ) 29,145 (1,199 ) 20,662 Asset write downs/disposals — (24,924 ) — (24,924 ) Foreign currency translation (185 ) — — (185 ) Liability at March 29, 2015 $ 10,586 $ — $ — $ 10,586 Included in "Asset Impairment/Disposal of Assets" above is a gain of $7,224 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 $7,158 , 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 . Also included are asset impairment charges totaling $3,003 relating primarily to the closure of a thermoforming line in Waynesville, North Carolina. "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. 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. 2015 2014 Total Incurred Estimated 2014 Actions Third Quarter Nine Months Third Quarter Nine Months Severance and Termination Benefits Consumer Packaging $ 33 $ 836 $ 136 $ 824 $ 1,686 $ 1,686 Display and Packaging (9 ) (9 ) 590 590 585 585 Paper and Industrial Converted Products — 127 295 2,878 3,404 3,404 Protective Solutions (15 ) (2 ) 182 370 758 758 Asset Impairment / Disposal of Assets Consumer Packaging $ — — 631 631 2,446 2,446 Paper and Industrial Converted Products — — (27 ) 665 781 781 Protective Solutions 100 133 — — 468 468 Other Costs Consumer Packaging $ 14 90 19 39 7,310 7,310 Display and Packaging — 21 4 4 2,756 2,756 Paper and Industrial Converted Products 82 381 105 77 1,028 1,078 Protective Solutions 213 450 (7 ) 178 788 838 Total Charges and Adjustments $ 418 $ 2,027 $ 1,928 $ 6,256 $ 22,010 $ 22,110 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 1,048 133 994 2,175 Adjustments (96 ) — (52 ) (148 ) Cash payments (1,402 ) — (1,389 ) (2,791 ) Asset write downs/disposals — (133 ) — (133 ) Foreign currency translation — — (16 ) (16 ) Liability at March 29, 2015 $ 409 $ — $ — $ 409 “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 $100 associated with 2013 and Earlier Actions. Below is a summary of expenses/(income) incurred by segment for 2013 and Earlier Actions for the three- and nine- month periods ended September 27, 2015 and September 28, 2014 . 2015 2014 2013 & Earlier Actions Third Quarter Nine Months Third Quarter Nine Months Consumer Packaging $ — $ — $ (395 ) $ (617 ) Display and Packaging — (39 ) 105 523 Paper and Industrial Converted Products (57 ) 551 1,541 2,619 Protective Solutions — — 26 87 Corporate — — (27 ) (27 ) Total Charges and Adjustments $ (57 ) $ 512 $ 1,250 $ 2,585 The accrual for 2013 and Earlier Actions totaled $664 and $1,990 at September 27, 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. Other Asset Impairments In addition to the restructuring charges discussed above, as a result of recent significant inflationary increases, and to avoid distortion of its consolidated results from translation of its Venezuelan operations, during the third quarter of 2015 the Company began translating its Venezuelan operations using the most current published Venezuelan exchange rate (the SIMADI rate) of 198 bolivars to the dollar rather than continue using the official rate of 6.3 bolivars to 1 U.S. dollar. This resulted in a foreign exchange remeasurement loss on net monetary assets. In addition, the use of the significantly higher SIMADI rate resulted in the need to recognize impairment charges against inventories and certain long-term nonmonetary assets as the U.S. dollar value of projected future cash flows from these assets was no longer sufficient to recover their U.S. dollar carrying values. The combined impact of the impairment charges and remeasurement loss was $12,065 on both a before and after-tax basis. The Company recorded a pretax asset impairment charge of $2,730 in the third quarter of 2014 to write off the customer list obtained in the 2008 acquisition of a small packaging fulfillment business included in the Company's Display and Packaging segment. This business provided display assembly and fulfillment services to a single customer in the pharmaceutical industry. As a result of losing this business, the Company has impaired the remaining unamortized balance of the customer list. These asset impairment charges and remeasurement loss are included in “Restructuring/Asset impairment charges” in the Company’s Condensed Consolidated Statements of Income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 27, 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 nine months ended September 27, 2015 and September 28, 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 1,844 (8,239 ) (114,766 ) (121,161 ) Amounts reclassified from accumulated other comprehensive loss to net income (153 ) 20,154 — 20,001 Amounts reclassified from accumulated other comprehensive loss to fixed assets (237 ) — — (237 ) Net current-period other comprehensive income/(loss) 1,454 11,915 (114,766 ) (101,397 ) Balance at September 27, 2015 $ (4,508 ) $ (463,371 ) $ (242,369 ) $ (710,248 ) Balance at December 31, 2013 $ (262 ) $ (344,622 ) $ (24,985 ) $ (369,869 ) Other comprehensive income/(loss) before reclassifications 1,261 (531 ) (46,543 ) (45,813 ) Amounts reclassified from accumulated other comprehensive loss to net income (1,192 ) 12,434 — 11,242 Amounts reclassified from accumulated other comprehensive loss to fixed assets 11 — — 11 Net current-period other comprehensive 80 11,903 (46,543 ) (34,560 ) Balance at September 28, 2014 $ (182 ) $ (332,719 ) $ (71,528 ) $ (404,429 ) 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- and nine- month periods ended September 27, 2015 and September 28, 2014 : Amount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Nine Months Ended Details about Accumulated Other Comprehensive Loss Components September 27, September 28, September 27, September 28, Affected Line Item in the Condensed Consolidated Statements of Net Income Gains and losses on cash flow hedges Foreign exchange contracts $ 2,757 $ 241 $ 4,010 $ (1,669 ) Net sales Foreign exchange contracts 1,965 232 3,437 2,343 Cost of sales Commodity contracts (2,245 ) 123 (7,202 ) 1,248 Cost of sales 2,477 596 245 1,922 Total before tax (767 ) (303 ) (92 ) (730 ) Tax (provision)/benefit $ 1,710 $ 293 $ 153 $ 1,192 Net of tax Defined benefit pension items Amortization of defined benefit pension items (a) $ (8,059 ) $ (4,868 ) $ (23,931 ) $ (14,482 ) Cost of sales Amortization of defined benefit pension items (a) (2,686 ) (1,622 ) (7,976 ) (4,826 ) Selling, general and (10,745 ) (6,490 ) (31,907 ) (19,308 ) Total before tax 3,973 2,195 11,753 6,874 Tax benefit $ (6,772 ) $ (4,295 ) $ (20,154 ) $ (12,434 ) Net of tax Total reclassifications for the period $ (5,062 ) $ (4,002 ) $ (20,001 ) $ (11,242 ) Net of tax (a) See Note 11 for additional details. At September 27, 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 $7,206 ( $4,508 after tax) at September 27, 2015 , and net 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 $2,698 at September 27, 2015 , and $3,655 at December 31, 2014 . During the three- and nine- month periods ended September 27, 2015 , the tax benefit on Cash Flow Hedges changed by $(368) and $(957) , respectively. The cumulative tax benefit on Defined Benefit Pension Items was $250,306 at September 27, 2015 , and $256,840 at December 31, 2014 . During the three- and nine- month periods ended September 27, 2015 , the tax benefit on Defined Benefit Pension Items changed by $(3,965) and $(6,534) , respectively. During the three- and nine- month periods ended September 27, 2015 , changes in noncontrolling interests included foreign currency translation adjustments of $(4,413) and $(4,574) , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 27, 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 nine months ended September 27, 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 Acquisitions 10,147 — — — 10,147 Dispositions (1,727 ) — — — (1,727 ) Foreign currency translation (27,582 ) — (12,881 ) — (40,463 ) Goodwill at September 27, 2015 $ 489,420 $ 204,629 $ 230,705 $ 221,165 $ 1,145,919 In May 2015, the Company acquired a majority ownership in a flexible packaging business in Brazil. In connection with this acquisition, the Company recognized $10,147 of Goodwill. See Note 4 for additional information. 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 Company assesses goodwill for impairment annually and from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. The Company completed its most recent annual goodwill impairment testing during the third quarter of 2015. Goodwill is tested for impairment using either a qualitative evaluation or a quantitative test. The qualitative evaluation considers factors such as the macroeconomic environment, Company stock price and market capitalization movement, business strategy changes, and significant customer wins and losses. The quantitative test considers factors such as the amount by which estimated fair value exceeds current carrying value, current year operating performance as compared to prior projections, and implied fair values from comparable trading and transaction multiples. Based on the results of its qualitative and quantitative assessments, the Company concluded that there was no impairment of goodwill for any of its reporting units. When calculated, reporting unit estimated fair values reflect 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 estimated fair values. When the Company estimates the fair value of a reporting unit, it does so using a discounted cash flow model based on projections of future years' operating results and associated cash flows, together with comparable trading and transaction multiples. The Company's projections incorporate management's best estimates of the expected future results, which include expectations related to new business, and, where applicable, improved operating margins. Management's projections related to revenue growth and/or margin improvements arise from a combination of factors, including expectations for volume growth with existing customers, product expansion, improved price/cost, productivity gains, fixed cost leverage, improvement in general economic conditions, increased operational capacity, and customer retention. Projected future cash flows are then discounted to present value using a discount rate management believes is commensurate with the risks inherent in the cash flows. Because the Company's assessments incorporate management's expectations for the future, including forecasted growth and/or margin improvements, if there are changes in the relevant facts and circumstances and/or expectations, management's assessment regarding goodwill impairment may change as well. In considering the level of uncertainty regarding the potential for goodwill impairment, management has concluded that any such impairment would likely be the result of adverse changes in more than one assumption. Although no reporting units failed the assessments noted above, in management’s opinion, the reporting units having the greatest risk of a significant future impairment if actual results fall short of expectations are Plastics – Blowmolding, Display and Packaging, and Paper and Industrial Converted Products - Europe. Total goodwill associated with these reporting units was approximately $116,400 , $204,600 , and $88,500 , respectively, at September 27, 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. There were no triggering events identified between the most recent annual impairment test and September 27, 2015 . Other Intangible Assets A summary of other intangible assets as of September 27, 2015 and December 31, 2014 is as follows: September 27, December 31, Other Intangible Assets, gross Patents $ 12,963 $ 13,883 Customer lists 385,818 385,466 Trade names 19,271 19,366 Proprietary technology 17,748 17,786 Land use rights 293 320 Other 1,281 1,309 Other Intangible Assets, gross $ 437,374 $ 438,130 Accumulated Amortization $ (181,231 ) $ (157,195 ) Other Intangible Assets, net $ 256,143 $ 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 intangible assets with indefinite lives. The Company recorded $13,521 of identifiable intangible assets in connection with 2015 acquisitions, the vast majority of which related to customer lists. These customer lists will be amortized over their average expected useful life of approximately 12 years. See Note 4 for additional information. Also during 2015, the Company disposed of customer lists totaling $3,516 in connection with the sale of a portion of its metal ends and closures business, including two production facilities in Canton, Ohio. See Note 6 for additional information. Aggregate amortization expense was $8,533 and $7,040 for the three months ended September 27, 2015 and September 28, 2014 , respectively, and $24,857 and $20,863 for the nine months ended September 27, 2015 and September 28, 2014 , respectively . Amortization expense on other intangible assets is expected to total approximately $33,700 in 2015, $33,000 in 2016, $32,200 in 2017, $31,600 in 2018 and $30,200 in 2019. |
Financial Instruments and Deriv
Financial Instruments and Derivatives | 9 Months Ended |
Sep. 27, 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. September 27, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, net of current portion $ 1,073,043 $ 1,153,067 $ 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 September 27, 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 July 2015 to December 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 September 27, 2015 , natural gas swaps covering approximately 5.9 MMBTUs were outstanding. These contracts represent approximately 74% and 74% of anticipated U.S. and Canadian usage for the remainder of 2015 and 2016, respectively. Additionally, the Company had swap contracts covering 1,224 metric tons of aluminum and 660 short tons of OCC, representing approximately 52% and 1% of anticipated usage for the remainder of 2015, respectively. The fair values of the Company’s commodity cash flow hedges netted to loss positions of $(4,050) and $(6,086) at September 27, 2015 and December 31, 2014 , respectively. The amount of the loss included in Accumulated Other Comprehensive Loss at September 27, 2015 , that is expected to be reclassified to the income statement during the next twelve months is $(3,575) . 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 September 27, 2015 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 4,440,059 Mexican peso purchase 97,696 Canadian dollar purchase 14,465 Euro purchase 7,307 Turkish lira purchase 2,256 Russian ruble purchase 304 Polish zloty purchase 275 New Zealand dollar sell (840 ) Australian dollar sell (1,616 ) British pound sell (2,366 ) The fair value of these foreign currency cash flow hedges netted to a loss position of $(3,236) at September 27, 2015 and $(3,526) at December 31, 2014 , respectively. During the nine months ended September 27, 2015 , certain foreign currency cash flow hedges related to construction in progress were settled as the related capital expenditures were made. Gains 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 $(3,215) 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 September 27, 2015 , were as follows (in thousands): Currency Action Quantity Colombian peso purchase 36,757,020 Mexican peso purchase 237,727 British pound sell — Euro sell (19,175 ) The fair value of the Company’s other derivatives was $(2,478) and $(1,098) at September 27, 2015 and December 31, 2014 , respectively. The following table sets forth the location and fair values of the Company’s derivative instruments at September 27, 2015 and December 31, 2014 : Description Balance Sheet Location September 27, December 31, Derivatives designated as hedging instruments: Commodity Contracts Accrued expenses and other $ (3,641 ) $ (5,808 ) Commodity Contracts Other liabilities $ (409 ) $ (278 ) Foreign Exchange Contracts Prepaid expenses $ 1,087 $ 574 Foreign Exchange Contracts Accrued expenses and other $ (4,323 ) $ (4,100 ) Derivatives not designated as hedging instruments: Foreign Exchange Contracts Prepaid expenses $ 91 $ 68 Foreign Exchange Contracts Accrued expenses and other $ (2,569 ) $ (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. The following tables set forth the effect of the Company's derivative instruments on financial performance for the three months ended September 27, 2015 and September 28, 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 September 27, 2015 Foreign Exchange Contracts $ 4,784 Net sales $ 2,757 Net sales $ — Cost of sales $ 1,965 Commodity Contracts $ (1,728 ) Cost of sales $ (2,244 ) Cost of sales $ (30 ) Three months ended September 28, 2014 Foreign Exchange Contracts $ (55 ) Net sales $ 241 Net sales $ — Cost of sales $ 232 Commodity Contracts $ (1,250 ) Cost of sales $ 123 Cost of sales $ 44 Description Location of Gain or (Loss) Recognized in Income Statement Gain or (Loss) Recognized Derivatives not Designated as Hedging Instruments: Three months ended September 27, 2015 Foreign Exchange Contracts Cost of sales $ (1,972 ) Selling, general and administrative $ (141 ) Three months ended September 28, 2014 Foreign Exchange Contracts Cost of sales $ 77 Selling, general and administrative $ (194 ) The following tables set forth the effect of the Company’s derivative instruments on financial performance for the nine months ended September 27, 2015 and September 28, 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: Nine months ended September 27, 2015 Foreign Exchange Contracts $ 7,974 Net sales $ 4,010 Net sales $ — Cost of sales $ 3,437 Commodity Contracts $ (5,080 ) Cost of sales $ (7,201 ) Cost of sales $ 80 Nine months ended September 28, 2014 Foreign Exchange Contracts $ 420 Net sales $ (1,669 ) Net sales $ — Cost of sales $ 2,343 Commodity Contracts $ 1,519 Cost of sales $ 1,248 Cost of sales $ — Description Location of Gain or (Loss) Recognized in Income Statement Gain or (Loss) Recognized Derivatives not Designated as Hedging Instruments: Nine months ended September 27, 2015 Foreign Exchange Contracts Cost of sales $ (1,601 ) Selling, general and administrative $ (127 ) Nine months ended September 28, 2014 Foreign Exchange Contracts Cost of sales $ (359 ) Selling, general and administrative $ (41 ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 27, 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 September 27, Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (4,050 ) $ — $ (4,050 ) $ — Foreign exchange contracts (3,236 ) — (3,236 ) — Non-hedge derivatives, net: Foreign exchange contracts (2,478 ) — (2,478 ) — Deferred compensation plan assets 915 915 — — 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- and nine- month periods ended September 27, 2015 . |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 27, 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 Nine Months Ended September 27, September 28, September 27, September 28, Retirement Plans Service cost $ 5,735 $ 5,491 $ 17,076 $ 16,283 Interest cost 17,657 18,376 52,419 54,684 Expected return on plan assets (23,485 ) (23,290 ) (69,738 ) (69,342 ) Amortization of net transition obligation 39 102 120 303 Amortization of prior service cost 185 168 552 497 Amortization of net actuarial loss 10,581 6,630 31,414 19,726 Net periodic benefit cost $ 10,712 $ 7,477 $ 31,843 $ 22,151 Retiree Health and Life Insurance Plans Service cost $ 195 $ 181 $ 579 $ 539 Interest cost 228 258 675 768 Expected return on plan assets (411 ) (398 ) (1,218 ) (1,187 ) Amortization of prior service credit (26 ) (345 ) (77 ) (1,026 ) Amortization of net actuarial loss (34 ) (65 ) (102 ) (192 ) Net periodic benefit income $ (48 ) $ (369 ) $ (143 ) $ (1,098 ) The Company made aggregate contributions of $16,551 and $46,372 to its defined benefit retirement and retiree health and life insurance plans during the nine months ended September 27, 2015 and September 28, 2014 , respectively. The Company anticipates that it will make additional aggregate contributions of approximately $6,000 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 $4,215 and $3,242 for the quarters ended September 27, 2015 and September 28, 2014 , respectively, and $11,144 and $8,728 for the nine-month periods ended September 27, 2015 and September 28, 2014 , respectively. Contributions to the SIRP, funded annually in the first quarter, totaled $12,865 during the nine months ended September 27, 2015 , and $12,049 during the nine months ended September 28, 2014 . No additional SIRP contributions are expected during the remainder of 2015. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the three- and nine- month periods ending September 27, 2015 , was 37.7% and 28.6% , respectively, and its effective tax rate for the three- and nine- month periods ended September 28, 2014 , was 29.6% and 31.7% , respectively. The rates for the three and nine-month periods of both years varied from the U.S. statutory rate due primarily to the favorable effect of certain international operations that are subject to tax rates generally lower than the U.S. rate, the favorable effect of the manufacturer’s deduction on U.S. taxes, and the effect of changes in uncertain tax positions. The rate for the three-month period ended September 27, 2015 , however, was higher than the U.S. statutory rate due to the foreign exchange related impairment charges of the Company's Venezuelan assets, for which no tax benefit was recorded. The effective tax rate for the nine-month period ended September 27, 2015 , while also impacted by the Venezuelan impairment, was reduced by the release of a valuation allowance against tax loss carryforwards in Spain in the second quarter and by the recognition of beneficial tax attributes associated with the disposition of the Company's Canton, Ohio metal ends and closures facilities in the first quarter. 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 2012. 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 $2,200 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. Although the Company’s estimate for the potential outcome for any uncertain tax issue is highly judgmental, management believes that any reasonably foreseeable outcomes related to these matters have been adequately provided for. However, future results may include favorable or unfavorable adjustments to estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. Additionally, the jurisdictions in which earnings or deductions are realized may differ from current estimates. As a result, the Company’s effective tax rate may fluctuate significantly on a quarterly basis. The Company has operations and pays taxes in many countries outside of the U.S. and taxes on those earnings are subject to varying rates. The Company is not dependent upon the favorable benefit of any one jurisdiction to an extent that loss of those benefits would have a material effect on the Company’s overall effective tax rate. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 27, 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 nine months ended September 27, 2015 , is largely composed of a $32,543 reversal of environmental liability reserves related to Fox River. SEGMENT FINANCIAL INFORMATION Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, (as Restated) (as Restated) Net sales: Consumer Packaging $ 521,499 $ 479,609 $ 1,572,490 $ 1,418,200 Display and Packaging 162,945 177,364 450,334 497,543 Paper and Industrial Converted Products 427,753 480,741 1,298,940 1,426,367 Protective Solutions 130,395 124,789 375,470 358,041 Consolidated $ 1,242,592 $ 1,262,503 $ 3,697,234 $ 3,700,151 Intersegment sales: Consumer Packaging $ 1,587 $ 1,008 $ 4,588 $ 2,916 Display and Packaging 523 385 1,371 1,165 Paper and Industrial Converted Products 26,243 25,824 78,832 78,822 Protective Solutions 731 366 1,796 1,752 Consolidated $ 29,084 $ 27,583 $ 86,587 $ 84,655 Income before interest and income taxes: Segment operating profit: Consumer Packaging $ 55,282 $ 49,769 $ 166,840 $ 140,783 Display and Packaging 5,405 2,007 7,278 9,549 Paper and Industrial Converted Products 32,292 48,996 99,052 125,289 Protective Solutions 12,911 10,277 36,200 25,204 Restructuring/Asset impairment charges (19,551 ) (5,908 ) (29,637 ) (11,571 ) Other, net (6,858 ) 888 22,816 (382 ) Consolidated $ 79,481 $ 106,029 $ 302,549 $ 288,872 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 27, 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 substantially less, the court has not yet ruled on the issue. 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 in the first quarter of 2015. Through September 27, 2015 , the Company has spent approximately $564 on legal costs related to the remaining Appvion claim, leaving a reserve of $4,436 remaining at September 27, 2015 . The actual costs that may be incurred associated with the 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 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 September 27, 2015 is limited to the equity position of U.S. Mills, which was approximately $124,000 at September 27, 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 $697 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 September 27, 2015 and December 31, 2014 , the Company's accrual for Tegrant's environmental contingencies totaled $18,477 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. The Company cannot currently estimate its potential liability, damages or range of potential loss, if any, with respect to this exposure. 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 September 27, 2015 and December 31, 2014 , the Company (and its subsidiaries) had accrued $25,595 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) | 9 Months Ended |
Sep. 27, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (FASB) issued ASU 2015-11, "Simplifying the Measurement of Inventory." ASU 2015-11 requires that inventory be measured at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventory measured using last-in, first-out or the retail inventory method are excluded from the scope of this update which is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 31, 2017. The new guidance does not represent a change from the Company’s current policy to measure inventory at lower of cost or net realizable value; therefore, implementation of ASU 2015-11 will not have a material impact on the Company's consolidated financial statements. In April 2015, the 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. Among other changes, ASU 2014-09 changes the manner in which variable consideration is recognized, requires recognition of the time value of money when payment terms exceed one year, provides clarification on accounting for contract costs, and expands disclosure requirements. The effective date for implementation of ASU 2014-09 has been deferred and is now effective for reporting periods beginning after December 15, 2017. The Company is still assessing the impact of ASU 2014-09 on its consolidated financial statements. During the three- and nine- month periods ended September 27, 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 September 27, 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) | 9 Months Ended |
Sep. 27, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Restated condensed consolidated financial statements for the three- and nine-month periods ended September 28, 2014, along with a reconciliation of the amounts previously reported to the restated amounts, are provided below. CONDENSED CONSOLIDATED STATEMENT OF INCOME Three Months Ended September 28, 2014 Effect of Restatement September 28, 2014 Net sales $ 1,263,574 $ (1,071 ) $ 1,262,503 Cost of sales 1,035,910 4,149 1,040,059 Gross profit 227,664 (5,220 ) 222,444 Selling, general and administrative expenses 110,507 — 110,507 Restructuring/Asset impairment charges 5,908 — 5,908 Income before interest and income taxes 111,249 (5,220 ) 106,029 Interest expense 13,620 — 13,620 Interest income 702 — 702 Income before income taxes 98,331 (5,220 ) 93,111 Provision for income taxes 28,891 (1,352 ) 27,539 Income before equity in earnings of affiliates 69,440 (3,868 ) 65,572 Equity in earnings of affiliates, net of tax 2,294 — 2,294 Net income $ 71,734 $ (3,868 ) $ 67,866 Net (income) attributable to noncontrolling interests (810 ) — (810 ) Net income attributable to Sonoco $ 70,924 $ (3,868 ) $ 67,056 Weighted average common shares outstanding: Basic 102,128 — 102,128 Diluted 103,087 — 103,087 Per common share: Net income attributable to Sonoco: Basic $ 0.69 $ (0.03 ) $ 0.66 Diluted $ 0.69 $ (0.04 ) $ 0.65 Cash dividends $ 0.32 $ — $ 0.32 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended September 28, 2014 as Previously Reported Effect of Restatement September 28, 2014 as Restated Net income $ 71,734 $ (3,868 ) $ 67,866 Other comprehensive income/(loss): Foreign currency translation adjustments (48,018 ) 373 (47,645 ) Changes in defined benefit plans, net of tax 4,386 — 4,386 Changes in derivative financial instruments, net of tax (1,229 ) — (1,229 ) Other comprehensive income/(loss) (44,861 ) 373 (44,488 ) Comprehensive income 26,873 (3,495 ) 23,378 Net (income) attributable to noncontrolling interests (810 ) — (810 ) Other comprehensive loss attributable to noncontrolling interests 250 — 250 Comprehensive income attributable to Sonoco $ 26,313 $ (3,495 ) $ 22,818 CONDENSED CONSOLIDATED STATEMENT OF INCOME Nine Months Ended September 28, 2014 Effect of Restatement September 28, 2014 Net sales $ 3,696,580 $ 3,571 $ 3,700,151 Cost of sales 3,024,876 14,120 3,038,996 Gross profit 671,704 (10,549 ) 661,155 Selling, general and administrative expenses 360,712 — 360,712 Restructuring/Asset impairment charges 11,571 — 11,571 Income before interest and income taxes 299,421 (10,549 ) 288,872 Interest expense 40,574 — 40,574 Interest income 1,878 — 1,878 Income before income taxes 260,725 (10,549 ) 250,176 Provision for income taxes 82,053 (2,731 ) 79,322 Income before equity in earnings of affiliates 178,672 (7,818 ) 170,854 Equity in earnings of affiliates, net of tax 6,896 — 6,896 Net income $ 185,568 $ (7,818 ) $ 177,750 Net (income) attributable to noncontrolling interests (858 ) — (858 ) Net income attributable to Sonoco $ 184,710 $ (7,818 ) $ 176,892 Weighted average common shares outstanding: Basic 102,451 — 102,451 Diluted 103,425 — 103,425 Per common share: Net income attributable to Sonoco: Basic $ 1.80 $ (0.07 ) $ 1.73 Diluted $ 1.79 $ (0.08 ) $ 1.71 Cash dividends $ 0.95 $ — $ 0.95 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Nine Months Ended September 28, 2014 as Previously Reported Effect of Restatement September 28, 2014 as Restated Net income $ 185,568 $ (7,818 ) $ 177,750 Other comprehensive income/(loss): Foreign currency translation adjustments (46,854 ) 311 (46,543 ) Changes in defined benefit plans, net of tax 387 11,516 11,903 Changes in derivative financial instruments, net of tax 80 — 80 Other comprehensive income/(loss) (46,387 ) 11,827 (34,560 ) Comprehensive income 139,181 4,009 143,190 Net (income) attributable to noncontrolling interests (858 ) — (858 ) Other comprehensive loss attributable to noncontrolling interests 115 — 115 Comprehensive income attributable to Sonoco $ 138,438 $ 4,009 $ 142,447 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Nine Months Ended September 28, 2014 as Previously Reported Effect of Restatement September 28, 2014 as Restated Cash Flows from Operating Activities: Net income $ 185,568 $ (7,818 ) $ 177,750 Adjustments to reconcile net income to net cash provided by operating activities: Asset impairment 4,139 — 4,139 Depreciation, depletion and amortization 144,728 — 144,728 Gain on reversal of Fox River environmental reserves — — — Share-based compensation expense 11,789 — 11,789 Equity in earnings of affiliates (6,896 ) — (6,896 ) Cash dividends from affiliated companies 5,494 — 5,494 Gain on disposition of assets (1,173 ) — (1,173 ) Pension and postretirement plan expense 29,780 — 29,780 Pension and postretirement plan contributions (58,421 ) — (58,421 ) Tax effect of share-based compensation exercises 2,341 — 2,341 Excess tax benefit of share-based compensation (2,511 ) — (2,511 ) Net change in deferred taxes 18,076 (1,361 ) 16,715 Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: Trade accounts receivable (102,862 ) 2,856 (100,006 ) Inventories 1,018 — 1,018 Payable to suppliers 28,661 (299 ) 28,362 Prepaid expenses (10,772 ) — (10,772 ) Accrued expenses 20,823 3,920 24,743 Income taxes payable and other income tax items 13,776 (1,370 ) 12,406 Fox River environmental reserve spending (15,000 ) — (15,000 ) Other assets and liabilities (1,161 ) 4,072 2,911 Net cash provided by operating activities 267,397 — 267,397 Cash Flows from Investing Activities: Purchase of property, plant and equipment (135,287 ) — (135,287 ) Cost of acquisitions, net of cash acquired (10,964 ) — (10,964 ) Proceeds from the sale of assets 6,451 — 6,451 Investment in affiliates and other, net (4,520 ) — (4,520 ) Net cash used in investing activities (144,320 ) — (144,320 ) Cash Flows from Financing Activities: Proceeds from issuance of debt 30,526 — 30,526 Principal repayment of debt (30,267 ) — (30,267 ) Net increase in commercial paper 36,000 — 36,000 Net decrease in outstanding checks (712 ) — (712 ) Excess tax benefit of share-based compensation 2,511 — 2,511 Cash dividends (96,446 ) — (96,446 ) Shares acquired (48,731 ) — (48,731 ) Shares issued 2,482 — 2,482 Net cash used in financing activities (104,637 ) — (104,637 ) Effects of Exchange Rate Changes on Cash (4,451 ) — (4,451 ) Net Decrease in Cash and Cash Equivalents 13,989 — 13,989 Cash and cash equivalents at beginning of period 217,567 — 217,567 Cash and cash equivalents at end of period $ 231,556 $ — $ 231,556 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Equity [Abstract] | |
Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, (as Restated) (as Restated) Numerator: Net income attributable to Sonoco $ 43,914 $ 67,056 $ 194,073 $ 176,892 Denominator: Weighted average common shares outstanding: Basic 101,548,000 102,128,000 101,454,000 102,451,000 Dilutive effect of stock-based compensation 857,000 959,000 933,000 974,000 Diluted 102,405,000 103,087,000 102,387,000 103,425,000 Reported net income attributable to Sonoco per common share: Basic $ 0.43 $ 0.66 $ 1.91 $ 1.73 Diluted $ 0.43 $ 0.65 $ 1.90 $ 1.71 |
Restructuring and Asset Impai24
Restructuring and Asset Impairment (Tables) | 9 Months Ended |
Sep. 27, 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: 2015 2014 Third Quarter Nine Months Third Quarter Nine Months Restructuring/Asset impairment: 2015 Actions $ 7,125 $ 15,033 $ — $ — 2014 Actions 418 2,027 1,928 6,256 2013 and Earlier Actions (57 ) 512 1,250 2,585 Other asset impairments 12,065 12,065 2,730 2,730 Restructuring/Asset impairment charges $ 19,551 $ 29,637 $ 5,908 $ 11,571 Income tax benefit $ (1,574 ) $ (16,850 ) $ (1,954 ) $ (3,342 ) Costs attributable to noncontrolling interests, net of tax (5 ) (75 ) (11 ) (26 ) Total impact of restructuring/asset impairment charges, net of tax $ 17,972 $ 12,712 $ 3,943 $ 8,203 |
Actions and Related Expenses by Segment and by Type Incurred and Estimated for Given Years | 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 Third Quarter 2015 Total Estimated Severance and Termination Benefits Consumer Packaging $ 2,997 $ 7,465 $ 11,665 Display and Packaging 576 780 880 Paper and Industrial Converted Products $ 2,300 $ 7,362 $ 7,562 Protective Solutions 39 39 39 Corporate 210 2,409 2,759 Asset Impairment / Disposal of Assets Consumer Packaging (53 ) (4,883 ) (4,883 ) Display and Packaging 194 211 211 Paper and Industrial Converted Products 230 451 451 Other Costs Consumer Packaging 441 936 1,936 Display and Packaging 89 89 289 Paper and Industrial Converted Products 102 163 413 Corporate — 11 11 Total Charges and Adjustments $ 7,125 $ 15,033 $ 21,333 Below is a summary of expenses/(income) incurred by segment for 2013 and Earlier Actions for the three- and nine- month periods ended September 27, 2015 and September 28, 2014 . 2015 2014 2013 & Earlier Actions Third Quarter Nine Months Third Quarter Nine Months Consumer Packaging $ — $ — $ (395 ) $ (617 ) Display and Packaging — (39 ) 105 523 Paper and Industrial Converted Products (57 ) 551 1,541 2,619 Protective Solutions — — 26 87 Corporate — — (27 ) (27 ) Total Charges and Adjustments $ (57 ) $ 512 $ 1,250 $ 2,585 Below is a summary of 2014 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2015 2014 Total Incurred Estimated 2014 Actions Third Quarter Nine Months Third Quarter Nine Months Severance and Termination Benefits Consumer Packaging $ 33 $ 836 $ 136 $ 824 $ 1,686 $ 1,686 Display and Packaging (9 ) (9 ) 590 590 585 585 Paper and Industrial Converted Products — 127 295 2,878 3,404 3,404 Protective Solutions (15 ) (2 ) 182 370 758 758 Asset Impairment / Disposal of Assets Consumer Packaging $ — — 631 631 2,446 2,446 Paper and Industrial Converted Products — — (27 ) 665 781 781 Protective Solutions 100 133 — — 468 468 Other Costs Consumer Packaging $ 14 90 19 39 7,310 7,310 Display and Packaging — 21 4 4 2,756 2,756 Paper and Industrial Converted Products 82 381 105 77 1,028 1,078 Protective Solutions 213 450 (7 ) 178 788 838 Total Charges and Adjustments $ 418 $ 2,027 $ 1,928 $ 6,256 $ 22,010 $ 22,110 |
Restructuring Accrual Activity for Given Years | 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/(income) 18,055 (4,221 ) 1,199 15,033 Cash receipts/(payments) (7,284 ) 29,145 (1,199 ) 20,662 Asset write downs/disposals — (24,924 ) — (24,924 ) Foreign currency translation (185 ) — — (185 ) Liability at March 29, 2015 $ 10,586 $ — $ — $ 10,586 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 1,048 133 994 2,175 Adjustments (96 ) — (52 ) (148 ) Cash payments (1,402 ) — (1,389 ) (2,791 ) Asset write downs/disposals — (133 ) — (133 ) Foreign currency translation — — (16 ) (16 ) Liability at March 29, 2015 $ 409 $ — $ — $ 409 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 27, 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 nine months ended September 27, 2015 and September 28, 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 1,844 (8,239 ) (114,766 ) (121,161 ) Amounts reclassified from accumulated other comprehensive loss to net income (153 ) 20,154 — 20,001 Amounts reclassified from accumulated other comprehensive loss to fixed assets (237 ) — — (237 ) Net current-period other comprehensive income/(loss) 1,454 11,915 (114,766 ) (101,397 ) Balance at September 27, 2015 $ (4,508 ) $ (463,371 ) $ (242,369 ) $ (710,248 ) Balance at December 31, 2013 $ (262 ) $ (344,622 ) $ (24,985 ) $ (369,869 ) Other comprehensive income/(loss) before reclassifications 1,261 (531 ) (46,543 ) (45,813 ) Amounts reclassified from accumulated other comprehensive loss to net income (1,192 ) 12,434 — 11,242 Amounts reclassified from accumulated other comprehensive loss to fixed assets 11 — — 11 Net current-period other comprehensive 80 11,903 (46,543 ) (34,560 ) Balance at September 28, 2014 $ (182 ) $ (332,719 ) $ (71,528 ) $ (404,429 ) |
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- and nine- month periods ended September 27, 2015 and September 28, 2014 : Amount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Nine Months Ended Details about Accumulated Other Comprehensive Loss Components September 27, September 28, September 27, September 28, Affected Line Item in the Condensed Consolidated Statements of Net Income Gains and losses on cash flow hedges Foreign exchange contracts $ 2,757 $ 241 $ 4,010 $ (1,669 ) Net sales Foreign exchange contracts 1,965 232 3,437 2,343 Cost of sales Commodity contracts (2,245 ) 123 (7,202 ) 1,248 Cost of sales 2,477 596 245 1,922 Total before tax (767 ) (303 ) (92 ) (730 ) Tax (provision)/benefit $ 1,710 $ 293 $ 153 $ 1,192 Net of tax Defined benefit pension items Amortization of defined benefit pension items (a) $ (8,059 ) $ (4,868 ) $ (23,931 ) $ (14,482 ) Cost of sales Amortization of defined benefit pension items (a) (2,686 ) (1,622 ) (7,976 ) (4,826 ) Selling, general and (10,745 ) (6,490 ) (31,907 ) (19,308 ) Total before tax 3,973 2,195 11,753 6,874 Tax benefit $ (6,772 ) $ (4,295 ) $ (20,154 ) $ (12,434 ) Net of tax Total reclassifications for the period $ (5,062 ) $ (4,002 ) $ (20,001 ) $ (11,242 ) Net of tax (a) See Note 11 for additional details. |
Goodwill and Other Intangible26
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill by Segment | A summary of the changes in goodwill by segment for the nine months ended September 27, 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 Acquisitions 10,147 — — — 10,147 Dispositions (1,727 ) — — — (1,727 ) Foreign currency translation (27,582 ) — (12,881 ) — (40,463 ) Goodwill at September 27, 2015 $ 489,420 $ 204,629 $ 230,705 $ 221,165 $ 1,145,919 |
Summary of Other Intangible Assets | A summary of other intangible assets as of September 27, 2015 and December 31, 2014 is as follows: September 27, December 31, Other Intangible Assets, gross Patents $ 12,963 $ 13,883 Customer lists 385,818 385,466 Trade names 19,271 19,366 Proprietary technology 17,748 17,786 Land use rights 293 320 Other 1,281 1,309 Other Intangible Assets, gross $ 437,374 $ 438,130 Accumulated Amortization $ (181,231 ) $ (157,195 ) Other Intangible Assets, net $ 256,143 $ 280,935 |
Financial Instruments and Der27
Financial Instruments and Derivatives (Tables) | 9 Months Ended |
Sep. 27, 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. September 27, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, net of current portion $ 1,073,043 $ 1,153,067 $ 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 September 27, 2015 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 4,440,059 Mexican peso purchase 97,696 Canadian dollar purchase 14,465 Euro purchase 7,307 Turkish lira purchase 2,256 Russian ruble purchase 304 Polish zloty purchase 275 New Zealand dollar sell (840 ) Australian dollar sell (1,616 ) British pound sell (2,366 ) |
Net Positions of Other Derivatives Contract | The net positions of these contracts at September 27, 2015 , were as follows (in thousands): Currency Action Quantity Colombian peso purchase 36,757,020 Mexican peso purchase 237,727 British pound sell — Euro sell (19,175 ) |
Location and Fair Values of Derivative Instruments | The following table sets forth the location and fair values of the Company’s derivative instruments at September 27, 2015 and December 31, 2014 : Description Balance Sheet Location September 27, December 31, Derivatives designated as hedging instruments: Commodity Contracts Accrued expenses and other $ (3,641 ) $ (5,808 ) Commodity Contracts Other liabilities $ (409 ) $ (278 ) Foreign Exchange Contracts Prepaid expenses $ 1,087 $ 574 Foreign Exchange Contracts Accrued expenses and other $ (4,323 ) $ (4,100 ) Derivatives not designated as hedging instruments: Foreign Exchange Contracts Prepaid expenses $ 91 $ 68 Foreign Exchange Contracts Accrued expenses and other $ (2,569 ) $ (1,166 ) |
Effect of Derivative Instruments on Financial Performance | 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 September 27, 2015 Foreign Exchange Contracts $ 4,784 Net sales $ 2,757 Net sales $ — Cost of sales $ 1,965 Commodity Contracts $ (1,728 ) Cost of sales $ (2,244 ) Cost of sales $ (30 ) Three months ended September 28, 2014 Foreign Exchange Contracts $ (55 ) Net sales $ 241 Net sales $ — Cost of sales $ 232 Commodity Contracts $ (1,250 ) Cost of sales $ 123 Cost of sales $ 44 Description Location of Gain or (Loss) Recognized in Income Statement Gain or (Loss) Recognized Derivatives not Designated as Hedging Instruments: Three months ended September 27, 2015 Foreign Exchange Contracts Cost of sales $ (1,972 ) Selling, general and administrative $ (141 ) Three months ended September 28, 2014 Foreign Exchange Contracts Cost of sales $ 77 Selling, general and administrative $ (194 ) The following tables set forth the effect of the Company’s derivative instruments on financial performance for the nine months ended September 27, 2015 and September 28, 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: Nine months ended September 27, 2015 Foreign Exchange Contracts $ 7,974 Net sales $ 4,010 Net sales $ — Cost of sales $ 3,437 Commodity Contracts $ (5,080 ) Cost of sales $ (7,201 ) Cost of sales $ 80 Nine months ended September 28, 2014 Foreign Exchange Contracts $ 420 Net sales $ (1,669 ) Net sales $ — Cost of sales $ 2,343 Commodity Contracts $ 1,519 Cost of sales $ 1,248 Cost of sales $ — Description Location of Gain or (Loss) Recognized in Income Statement Gain or (Loss) Recognized Derivatives not Designated as Hedging Instruments: Nine months ended September 27, 2015 Foreign Exchange Contracts Cost of sales $ (1,601 ) Selling, general and administrative $ (127 ) Nine months ended September 28, 2014 Foreign Exchange Contracts Cost of sales $ (359 ) Selling, general and administrative $ (41 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 27, 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 September 27, Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (4,050 ) $ — $ (4,050 ) $ — Foreign exchange contracts (3,236 ) — (3,236 ) — Non-hedge derivatives, net: Foreign exchange contracts (2,478 ) — (2,478 ) — Deferred compensation plan assets 915 915 — — 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) | 9 Months Ended |
Sep. 27, 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 Nine Months Ended September 27, September 28, September 27, September 28, Retirement Plans Service cost $ 5,735 $ 5,491 $ 17,076 $ 16,283 Interest cost 17,657 18,376 52,419 54,684 Expected return on plan assets (23,485 ) (23,290 ) (69,738 ) (69,342 ) Amortization of net transition obligation 39 102 120 303 Amortization of prior service cost 185 168 552 497 Amortization of net actuarial loss 10,581 6,630 31,414 19,726 Net periodic benefit cost $ 10,712 $ 7,477 $ 31,843 $ 22,151 Retiree Health and Life Insurance Plans Service cost $ 195 $ 181 $ 579 $ 539 Interest cost 228 258 675 768 Expected return on plan assets (411 ) (398 ) (1,218 ) (1,187 ) Amortization of prior service credit (26 ) (345 ) (77 ) (1,026 ) Amortization of net actuarial loss (34 ) (65 ) (102 ) (192 ) Net periodic benefit income $ (48 ) $ (369 ) $ (143 ) $ (1,098 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Segment Reporting [Abstract] | |
Segment Financial Information | SEGMENT FINANCIAL INFORMATION Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, (as Restated) (as Restated) Net sales: Consumer Packaging $ 521,499 $ 479,609 $ 1,572,490 $ 1,418,200 Display and Packaging 162,945 177,364 450,334 497,543 Paper and Industrial Converted Products 427,753 480,741 1,298,940 1,426,367 Protective Solutions 130,395 124,789 375,470 358,041 Consolidated $ 1,242,592 $ 1,262,503 $ 3,697,234 $ 3,700,151 Intersegment sales: Consumer Packaging $ 1,587 $ 1,008 $ 4,588 $ 2,916 Display and Packaging 523 385 1,371 1,165 Paper and Industrial Converted Products 26,243 25,824 78,832 78,822 Protective Solutions 731 366 1,796 1,752 Consolidated $ 29,084 $ 27,583 $ 86,587 $ 84,655 Income before interest and income taxes: Segment operating profit: Consumer Packaging $ 55,282 $ 49,769 $ 166,840 $ 140,783 Display and Packaging 5,405 2,007 7,278 9,549 Paper and Industrial Converted Products 32,292 48,996 99,052 125,289 Protective Solutions 12,911 10,277 36,200 25,204 Restructuring/Asset impairment charges (19,551 ) (5,908 ) (29,637 ) (11,571 ) Other, net (6,858 ) 888 22,816 (382 ) Consolidated $ 79,481 $ 106,029 $ 302,549 $ 288,872 |
Restatement of Previously Iss31
Restatement of Previously Issued Financial Statements (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 39 Months Ended | ||||||||
Sep. 27, 2015 | Mar. 29, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 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 attributable to Sonoco | $ 43,914 | $ 67,056 | $ 194,073 | $ 176,892 | ||||||||
Net income | $ 43,995 | $ 67,866 | $ 194,312 | $ 177,750 | ||||||||
Diluted (in usd per share) | $ 0.43 | $ 0.65 | $ 1.90 | $ 1.71 | ||||||||
Cost of sales | $ 1,013,219 | $ 1,040,059 | $ 3,007,155 | $ 3,038,996 | ||||||||
Gross Profit | $ 229,373 | 222,444 | $ 690,079 | 661,155 | ||||||||
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Effect of Restatement [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Net income attributable to Sonoco | (3,868) | (7,818) | ||||||||||
Net income | $ 2,139 | $ (3,868) | $ (7,818) | $ 10,817 | $ 9,758 | $ 601 | $ 23,315 | |||||
Diluted (in usd per share) | $ (0.04) | $ (0.08) | $ 0.23 | |||||||||
Cost of sales | $ 4,149 | $ 14,120 | ||||||||||
Gross Profit | (5,220) | (10,549) | ||||||||||
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Previously Reported [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Net income attributable to Sonoco | 70,924 | 184,710 | ||||||||||
Net income | $ 71,734 | $ 185,568 | ||||||||||
Diluted (in usd per share) | $ 0.69 | $ 1.79 | ||||||||||
Cost of sales | $ 1,035,910 | $ 3,024,876 | ||||||||||
Gross Profit | $ 227,664 | 671,704 | ||||||||||
Immaterial Error Correction [Member] | Effect of Restatement [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Cumulative adjustment to correct the error | $ 11,516 | |||||||||||
Understatement of Cost of Sales [Member] | Effect of Restatement [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Net income attributable to Sonoco | 770 | |||||||||||
Cost of sales | 1,184 | |||||||||||
Understatement of Cost of Sales [Member] | 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] | Effect of Restatement [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Cumulative adjustment to correct the error | $ 3,202 | $ 639 | $ 491 | $ 789 | $ 910 | $ 373 |
Restatement of Previously Iss32
Restatement of Previously Issued Financial Statements (Income Statement) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Sep. 10, 2015 | Sep. 27, 2015 | Mar. 29, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2015 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Net sales | $ 1,242,592 | $ 1,262,503 | $ 3,697,234 | $ 3,700,151 | ||||||
Cost of sales | 1,013,219 | 1,040,059 | 3,007,155 | 3,038,996 | ||||||
Gross profit | 229,373 | 222,444 | 690,079 | 661,155 | ||||||
Selling, general and administrative expenses | 130,341 | 110,507 | 357,893 | 360,712 | ||||||
Restructuring/Asset impairment charges | 19,551 | 5,908 | 29,637 | 11,571 | ||||||
Income before interest and income taxes | 79,481 | 106,029 | 302,549 | 288,872 | ||||||
Interest expense | 14,340 | 13,620 | 42,352 | 40,574 | ||||||
Interest income | 653 | 702 | 1,843 | 1,878 | ||||||
Income before income taxes | 65,794 | 93,111 | 262,040 | 250,176 | ||||||
Provision for income taxes | 24,775 | 27,539 | 75,019 | 79,322 | ||||||
Income before equity in earnings of affiliates | 41,019 | 65,572 | 187,021 | 170,854 | ||||||
Equity in earnings of affiliates, net of tax | 2,976 | 2,294 | 7,291 | 6,896 | ||||||
Net income | 43,995 | 67,866 | 194,312 | 177,750 | ||||||
Net (income) attributable to noncontrolling interests | (81) | (810) | (239) | (858) | ||||||
Net income attributable to Sonoco | $ 43,914 | $ 67,056 | $ 194,073 | $ 176,892 | ||||||
Basic (in shares) | 101,548 | 102,128 | 101,454 | 102,451 | ||||||
Diluted (in shares) | 102,405 | 103,087 | 102,387 | 103,425 | ||||||
Net income attributable to Sonoco: | ||||||||||
Basic (in usd per share) | $ 0.43 | $ 0.66 | $ 1.91 | $ 1.73 | ||||||
Diluted (in usd per share) | 0.43 | 0.65 | 1.90 | 1.71 | ||||||
Cash dividends (usd per share) | $ 0.35 | $ 0.35 | $ 0.32 | $ 1.02 | $ 0.95 | |||||
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Previously Reported [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Net sales | $ 1,263,574 | $ 3,696,580 | ||||||||
Cost of sales | 1,035,910 | 3,024,876 | ||||||||
Gross profit | 227,664 | 671,704 | ||||||||
Selling, general and administrative expenses | 110,507 | 360,712 | ||||||||
Restructuring/Asset impairment charges | 5,908 | 11,571 | ||||||||
Income before interest and income taxes | 111,249 | 299,421 | ||||||||
Interest expense | 13,620 | 40,574 | ||||||||
Interest income | 702 | 1,878 | ||||||||
Income before income taxes | 98,331 | 260,725 | ||||||||
Provision for income taxes | 28,891 | 82,053 | ||||||||
Income before equity in earnings of affiliates | 69,440 | 178,672 | ||||||||
Equity in earnings of affiliates, net of tax | 2,294 | 6,896 | ||||||||
Net income | 71,734 | 185,568 | ||||||||
Net (income) attributable to noncontrolling interests | (810) | (858) | ||||||||
Net income attributable to Sonoco | $ 70,924 | $ 184,710 | ||||||||
Basic (in shares) | 102,128 | 102,451 | ||||||||
Diluted (in shares) | 103,087 | 103,425 | ||||||||
Net income attributable to Sonoco: | ||||||||||
Basic (in usd per share) | $ 0.69 | $ 1.80 | ||||||||
Diluted (in usd per share) | 0.69 | 1.79 | ||||||||
Cash dividends (usd per share) | $ 0.32 | $ 0.95 | ||||||||
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Effect of Restatement [Member] | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Net sales | $ (1,071) | $ 3,571 | ||||||||
Cost of sales | 4,149 | 14,120 | ||||||||
Gross profit | (5,220) | (10,549) | ||||||||
Selling, general and administrative expenses | 0 | 0 | ||||||||
Restructuring/Asset impairment charges | 0 | 0 | ||||||||
Income before interest and income taxes | (5,220) | (10,549) | ||||||||
Interest expense | 0 | 0 | ||||||||
Interest income | 0 | 0 | ||||||||
Income before income taxes | (5,220) | (10,549) | ||||||||
Provision for income taxes | (1,352) | (2,731) | ||||||||
Income before equity in earnings of affiliates | (3,868) | (7,818) | ||||||||
Equity in earnings of affiliates, net of tax | 0 | 0 | ||||||||
Net income | $ 2,139 | (3,868) | (7,818) | $ 10,817 | $ 9,758 | $ 601 | $ 23,315 | |||
Net (income) attributable to noncontrolling interests | 0 | 0 | ||||||||
Net income attributable to Sonoco | $ (3,868) | $ (7,818) | ||||||||
Basic (in shares) | 0 | 0 | ||||||||
Diluted (in shares) | 0 | 0 | ||||||||
Net income attributable to Sonoco: | ||||||||||
Basic (in usd per share) | $ (0.03) | $ (0.07) | ||||||||
Diluted (in usd per share) | (0.04) | (0.08) | $ 0.23 | |||||||
Cash dividends (usd per share) | $ 0 | $ 0 |
Restatement of Previously Iss33
Restatement of Previously Issued Financial Statements (OCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 39 Months Ended | |||||
Sep. 27, 2015 | Mar. 29, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Net income | $ 43,995 | $ 67,866 | $ 194,312 | $ 177,750 | |||||
Other comprehensive income/(loss): | |||||||||
Foreign currency translation adjustments | (55,520) | (47,645) | (114,766) | (46,543) | |||||
Changes in defined benefit plans, net of tax | 6,767 | 4,386 | 11,915 | 11,903 | |||||
Changes in derivative financial instruments, net of tax | 210 | (1,229) | 1,454 | 80 | |||||
Other comprehensive income/(loss) | (48,543) | (44,488) | (101,397) | (34,560) | |||||
Comprehensive income/(loss) | (4,548) | 23,378 | 92,915 | 143,190 | |||||
Net (income) attributable to noncontrolling interests | (81) | (810) | (239) | (858) | |||||
Other comprehensive loss attributable to noncontrolling interests | 4,413 | 250 | 4,574 | 115 | |||||
Comprehensive (loss)/income attributable to Sonoco | $ (216) | 22,818 | $ 97,250 | 142,447 | |||||
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Previously Reported [Member] | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Net income | 71,734 | 185,568 | |||||||
Other comprehensive income/(loss): | |||||||||
Foreign currency translation adjustments | (48,018) | (46,854) | |||||||
Changes in defined benefit plans, net of tax | 4,386 | 387 | |||||||
Changes in derivative financial instruments, net of tax | (1,229) | 80 | |||||||
Other comprehensive income/(loss) | (44,861) | (46,387) | |||||||
Comprehensive income/(loss) | 26,873 | 139,181 | |||||||
Net (income) attributable to noncontrolling interests | (810) | (858) | |||||||
Other comprehensive loss attributable to noncontrolling interests | 250 | 115 | |||||||
Comprehensive (loss)/income attributable to Sonoco | 26,313 | 138,438 | |||||||
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Effect of Restatement [Member] | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Net income | $ 2,139 | (3,868) | (7,818) | $ 10,817 | $ 9,758 | $ 601 | $ 23,315 | ||
Other comprehensive income/(loss): | |||||||||
Foreign currency translation adjustments | 373 | 311 | |||||||
Changes in defined benefit plans, net of tax | 0 | 11,516 | |||||||
Changes in derivative financial instruments, net of tax | 0 | 0 | |||||||
Other comprehensive income/(loss) | 373 | 11,827 | |||||||
Comprehensive income/(loss) | (3,495) | 4,009 | |||||||
Net (income) attributable to noncontrolling interests | 0 | 0 | |||||||
Other comprehensive loss attributable to noncontrolling interests | 0 | 0 | |||||||
Comprehensive (loss)/income attributable to Sonoco | $ (3,495) | $ 4,009 |
Restatement of Previously Iss34
Restatement of Previously Issued Financial Statements (Cash Flow) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 39 Months Ended | ||||||||
Sep. 27, 2015 | Mar. 29, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2015 | ||||
Cash Flows from Operating Activities: | ||||||||||||
Net income | $ 43,995 | $ 67,866 | $ 194,312 | $ 177,750 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Asset impairment | 12,065 | 2,730 | 14,773 | 4,139 | ||||||||
Depreciation, depletion and amortization | 157,216 | 144,728 | ||||||||||
Gain on reversal of Fox River environmental reserves | (32,543) | 0 | ||||||||||
Share-based compensation expense | 4,783 | 11,789 | ||||||||||
Equity in earnings of affiliates | (2,976) | (2,294) | (7,291) | (6,896) | ||||||||
Cash dividends from affiliated companies | 5,480 | 5,494 | ||||||||||
Gain on disposition of assets | (6,473) | (1,173) | ||||||||||
Pension and postretirement plan expense | 42,844 | 29,780 | ||||||||||
Pension and postretirement plan contributions | (29,416) | (58,421) | ||||||||||
Tax effect of share-based compensation exercises | 3,515 | 2,341 | ||||||||||
Excess tax benefit of share-based compensation | (3,525) | (2,511) | ||||||||||
Net (decrease)/increase in deferred taxes | (7,709) | 16,715 | ||||||||||
Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: | ||||||||||||
Trade accounts receivable | (70,794) | (100,006) | ||||||||||
Inventories | (11,982) | 1,018 | ||||||||||
Payable to suppliers | 26,581 | 28,362 | ||||||||||
Prepaid expenses | (9,053) | (10,772) | ||||||||||
Accrued expenses | 45,346 | 24,743 | ||||||||||
Income taxes payable and other income tax items | 3,717 | 12,406 | ||||||||||
Fox River environmental reserve spending | (796) | (15,000) | ||||||||||
Other assets and liabilities | (845) | 2,911 | ||||||||||
Net cash provided by operating activities | 318,140 | 267,397 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||
Purchase of property, plant and equipment | (140,869) | (135,287) | ||||||||||
Cost of acquisitions, net of cash acquired | (17,447) | (10,964) | ||||||||||
Proceeds from the sale of assets | 31,310 | 6,451 | ||||||||||
Investment in affiliates and other, net | (2,773) | (4,520) | ||||||||||
Net cash used in investing activities | (129,779) | (144,320) | ||||||||||
Cash Flows from Financing Activities: | ||||||||||||
Proceeds from issuance of debt | 57,311 | 30,526 | ||||||||||
Principal repayment of debt | (105,388) | (30,267) | ||||||||||
Net increase in commercial paper | 0 | 36,000 | ||||||||||
Net decrease in outstanding checks | (2,609) | (712) | ||||||||||
Excess tax benefit of share-based compensation | 3,525 | 2,511 | ||||||||||
Cash dividends | (102,702) | (96,446) | ||||||||||
Shares acquired | (7,729) | (48,731) | ||||||||||
Shares issued | 1,307 | 2,482 | ||||||||||
Net cash used in financing activities | (156,285) | (104,637) | ||||||||||
Effects of Exchange Rate Changes on Cash | 179 | (4,451) | ||||||||||
Net Increase in Cash and Cash Equivalents | 32,255 | 13,989 | ||||||||||
Cash and cash equivalents at beginning of period | $ 161,168 | [1] | 161,168 | [1] | 217,567 | $ 217,567 | ||||||
Cash and cash equivalents at end of period | $ 193,423 | 231,556 | $ 193,423 | 231,556 | 161,168 | [1] | $ 217,567 | |||||
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Previously Reported [Member] | ||||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net income | 71,734 | 185,568 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Asset impairment | 4,139 | |||||||||||
Depreciation, depletion and amortization | 144,728 | |||||||||||
Gain on reversal of Fox River environmental reserves | 0 | |||||||||||
Share-based compensation expense | 11,789 | |||||||||||
Equity in earnings of affiliates | (2,294) | (6,896) | ||||||||||
Cash dividends from affiliated companies | 5,494 | |||||||||||
Gain on disposition of assets | (1,173) | |||||||||||
Pension and postretirement plan expense | 29,780 | |||||||||||
Pension and postretirement plan contributions | (58,421) | |||||||||||
Tax effect of share-based compensation exercises | 2,341 | |||||||||||
Excess tax benefit of share-based compensation | (2,511) | |||||||||||
Net (decrease)/increase in deferred taxes | 18,076 | |||||||||||
Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: | ||||||||||||
Trade accounts receivable | (102,862) | |||||||||||
Inventories | 1,018 | |||||||||||
Payable to suppliers | 28,661 | |||||||||||
Prepaid expenses | (10,772) | |||||||||||
Accrued expenses | 20,823 | |||||||||||
Income taxes payable and other income tax items | 13,776 | |||||||||||
Fox River environmental reserve spending | (15,000) | |||||||||||
Other assets and liabilities | (1,161) | |||||||||||
Net cash provided by operating activities | 267,397 | |||||||||||
Cash Flows from Investing Activities: | ||||||||||||
Purchase of property, plant and equipment | (135,287) | |||||||||||
Cost of acquisitions, net of cash acquired | (10,964) | |||||||||||
Proceeds from the sale of assets | 6,451 | |||||||||||
Investment in affiliates and other, net | (4,520) | |||||||||||
Net cash used in investing activities | (144,320) | |||||||||||
Cash Flows from Financing Activities: | ||||||||||||
Proceeds from issuance of debt | 30,526 | |||||||||||
Principal repayment of debt | (30,267) | |||||||||||
Net increase in commercial paper | 36,000 | |||||||||||
Net decrease in outstanding checks | (712) | |||||||||||
Excess tax benefit of share-based compensation | 2,511 | |||||||||||
Cash dividends | (96,446) | |||||||||||
Shares acquired | (48,731) | |||||||||||
Shares issued | 2,482 | |||||||||||
Net cash used in financing activities | (104,637) | |||||||||||
Effects of Exchange Rate Changes on Cash | (4,451) | |||||||||||
Net Increase in Cash and Cash Equivalents | 13,989 | |||||||||||
Cash and cash equivalents at beginning of period | 217,567 | 217,567 | ||||||||||
Cash and cash equivalents at end of period | 231,556 | 231,556 | 217,567 | |||||||||
Overstatement of Operating Results of a Packaging Services Center in Mexico [Member] | Effect of Restatement [Member] | ||||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net income | $ 2,139 | (3,868) | (7,818) | 10,817 | 9,758 | $ 601 | $ 23,315 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Asset impairment | 0 | |||||||||||
Depreciation, depletion and amortization | 0 | |||||||||||
Gain on reversal of Fox River environmental reserves | 0 | |||||||||||
Share-based compensation expense | 0 | |||||||||||
Equity in earnings of affiliates | 0 | 0 | ||||||||||
Cash dividends from affiliated companies | 0 | |||||||||||
Gain on disposition of assets | 0 | |||||||||||
Pension and postretirement plan expense | 0 | |||||||||||
Pension and postretirement plan contributions | 0 | |||||||||||
Tax effect of share-based compensation exercises | 0 | |||||||||||
Excess tax benefit of share-based compensation | 0 | |||||||||||
Net (decrease)/increase in deferred taxes | (1,361) | |||||||||||
Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: | ||||||||||||
Trade accounts receivable | 2,856 | |||||||||||
Inventories | 0 | |||||||||||
Payable to suppliers | (299) | |||||||||||
Prepaid expenses | 0 | |||||||||||
Accrued expenses | 3,920 | |||||||||||
Income taxes payable and other income tax items | (1,370) | |||||||||||
Fox River environmental reserve spending | 0 | |||||||||||
Other assets and liabilities | 4,072 | |||||||||||
Net cash provided by operating activities | 0 | |||||||||||
Cash Flows from Investing Activities: | ||||||||||||
Purchase of property, plant and equipment | 0 | |||||||||||
Cost of acquisitions, net of cash acquired | 0 | |||||||||||
Proceeds from the sale of assets | 0 | |||||||||||
Investment in affiliates and other, net | 0 | |||||||||||
Net cash used in investing activities | 0 | |||||||||||
Cash Flows from Financing Activities: | ||||||||||||
Proceeds from issuance of debt | 0 | |||||||||||
Principal repayment of debt | 0 | |||||||||||
Net increase in commercial paper | 0 | |||||||||||
Net decrease in outstanding checks | 0 | |||||||||||
Excess tax benefit of share-based compensation | 0 | |||||||||||
Cash dividends | 0 | |||||||||||
Shares acquired | 0 | |||||||||||
Shares issued | 0 | |||||||||||
Net cash used in financing activities | 0 | |||||||||||
Effects of Exchange Rate Changes on Cash | 0 | |||||||||||
Net Increase in Cash and Cash Equivalents | 0 | |||||||||||
Cash and cash equivalents at beginning of period | 0 | $ 0 | ||||||||||
Cash and cash equivalents at end of period | $ 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. |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | Sep. 21, 2015USD ($) | Apr. 01, 2015USD ($)employee | Oct. 31, 2014USD ($) | Sep. 27, 2015USD ($) | Sep. 28, 2014USD ($) | Sep. 27, 2015USD ($) | Sep. 28, 2014USD ($) | Dec. 31, 2014USD ($) | |
Business Acquisition [Line Items] | |||||||||
Cash paid during the acquisition | $ 17,447 | $ 10,964 | |||||||
Goodwill | $ 1,145,919 | 1,145,919 | $ 1,177,962 | [1] | |||||
Acquisition related costs | 288 | $ 1,680 | 3,536 | $ 2,950 | |||||
Wood Plug Business of Smith Family Companies Inc. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Pro Forma revenue | $ 3,700 | ||||||||
Business Combination, Contingent Consideration, Period of Payment | 30 days | ||||||||
Consideration transferred | $ 2,850 | ||||||||
Cash paid during the acquisition | 1,750 | ||||||||
Business Combination, Contingent Consideration, Liability | 1,100 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 2,750 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 100 | ||||||||
Consumer Packaging Segment [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 489,420 | $ 489,420 | $ 508,582 | ||||||
Consumer Packaging Segment [Member] | Graffo Paranaense de Embalagens S/A [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Percentage of controlling asset acquired | 67.00% | ||||||||
Number of employees in the acquired entity | employee | 230 | ||||||||
Pro Forma revenue | $ 30,000 | ||||||||
Consideration transferred | 18,334 | ||||||||
Cash paid during the acquisition | 15,697 | ||||||||
Consideration transferred, liabilities incurred | 2,637 | ||||||||
Goodwill | 10,147 | ||||||||
Net Assets, excluding intangibles | 5,438 | ||||||||
Identifiable intangible assets | 10,671 | ||||||||
Noncontrolling interest acquired | $ 7,922 | ||||||||
Consumer Packaging Segment [Member] | Weidenhammer Packaging Group [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash paid during the acquisition | $ 355,316 | ||||||||
Purchase accounting adjustments | $ 4,974 | ||||||||
[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. |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Numerator: | ||||
Net income attributable to Sonoco | $ 43,914 | $ 67,056 | $ 194,073 | $ 176,892 |
Denominator: | ||||
Basic (in shares) | 101,548 | 102,128 | 101,454 | 102,451 |
Dilutive effect of stock-based compensation (in shares) | 857 | 959 | 933 | 974 |
Diluted (in shares) | 102,405 | 103,087 | 102,387 | 103,425 |
Reported net income attributable to Sonoco per common share: | ||||
Basic (in usd per share) | $ 0.43 | $ 0.66 | $ 1.91 | $ 1.73 |
Diluted (in usd per share) | $ 0.43 | $ 0.65 | $ 1.90 | $ 1.71 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | Dec. 10, 2015 | Nov. 13, 2015 | Oct. 19, 2015 | Sep. 10, 2015 | Aug. 14, 2015 | Jul. 14, 2015 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | ||||||||||||
Number of securities excluded from computation of dilutive earning per share | 1,165,126 | 638,160 | 718,845 | 640,901 | ||||||||
Effect on basic earnings per share (usd per share) | $ 0 | |||||||||||
Number of shares authorized for repurchase | 5,000,000 | 5,000,000 | ||||||||||
Number of shares repurchased | 0 | 2,000,000 | 132,500 | |||||||||
Number of shares available for repurchase | 2,867,500 | 2,867,500 | ||||||||||
Dividend declared date | Jul. 14, 2015 | |||||||||||
Dividend declared and payable (in usd per share) | $ 0.35 | |||||||||||
Dividend payable date of record | Aug. 14, 2015 | |||||||||||
Cash dividends (usd per share) | $ 0.35 | $ 0.35 | $ 0.32 | $ 1.02 | $ 0.95 | |||||||
Dividend payable date | Sep. 10, 2015 | |||||||||||
Tax Withholding Obligations [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of shares repurchased | 169,590 | 87,583 | ||||||||||
Cost of shares repurchased | $ 7,729,000 | $ 3,718,000 | ||||||||||
Subsequent Event [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Dividend declared date | Oct. 19, 2015 | |||||||||||
Dividend declared and payable (in usd per share) | $ 0.35 | |||||||||||
Dividend payable date of record | Nov. 13, 2015 | |||||||||||
Dividend payable date | Dec. 10, 2015 |
Restructuring and Asset Impai38
Restructuring and Asset Impairment - Restructuring and Asset Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | $ 19,551 | $ 5,908 | $ 29,637 | $ 11,571 |
Income tax benefit | (1,574) | (1,954) | (16,850) | (3,342) |
Costs attributable to noncontrolling interests, net of tax | (5) | (11) | (75) | (26) |
Total impact of restructuring/asset impairment charges, net of tax | 17,972 | 3,943 | 12,712 | 8,203 |
2015 Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 7,125 | 0 | 15,033 | 0 |
2014 Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 418 | 1,928 | 2,027 | 6,256 |
2013 and Earlier Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | (57) | 1,250 | 512 | 2,585 |
Other Asset Impairments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | $ 12,065 | $ 2,730 | $ 12,065 | $ 2,730 |
Restructuring and Asset Impai39
Restructuring and Asset Impairment - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 27, 2015USD ($)positionVEF / $ | Sep. 28, 2014USD ($) | Sep. 27, 2015USD ($)facilitypositionVEF / $ | Sep. 28, 2014USD ($) | Dec. 31, 2014USD ($)facilityposition | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of facilities closed | facility | 4 | 2 | |||
Tax benefit | $ 24,775 | $ 27,539 | $ 75,019 | $ 79,322 | |
Restructuring Cost and Reserve [Line Items] | |||||
Expected future charges associated with previous restructuring | $ 6,500 | ||||
Foreign currency exchange rate, remeasurement | VEF / $ | 198 | 198 | |||
Foreign currency exchange rate, translation | 6.3 | 6.3 | |||
Asset impairment | $ 12,065 | $ 2,730 | $ 14,773 | $ 4,139 | |
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 | 7,224 | ||||
Proceeds from sales of business | 29,128 | ||||
Net fixed assets | 9,806 | 9,806 | |||
Inventory | 7,158 | 7,158 | |||
Goodwill | 1,727 | 1,727 | |||
Intangible assets | 3,516 | 3,516 | |||
Liabilities assumed by the acquiring company | 303 | 303 | |||
Tax benefit | 9,200 | ||||
Thermoforming Line [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net fixed assets | $ 3,003 | $ 3,003 | |||
2015 Actions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Elimination of Positions due to realign in cost structure | position | 210 | 210 | |||
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 | $ 100 | ||||
Remaining restructuring accrual | $ 664 | $ 664 | $ 1,990 | ||
UNITED KINGDOM [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of facilities closed | facility | 1 | ||||
UNITED STATES [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of facilities closed | facility | 2 | 1 | |||
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 | ||||
BRAZIL [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of facilities closed | facility | 1 |
Restructuring and Asset Impai40
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 | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | $ 19,551 | $ 5,908 | $ 29,637 | $ 11,571 |
2015 Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 7,125 | 0 | 15,033 | 0 |
Total Incurred to Date | 15,033 | 15,033 | ||
Estimated Total Cost | 21,333 | 21,333 | ||
2015 Actions [Member] | Severance and Termination Benefits [Member] | Consumer Packaging [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 2,997 | |||
Total Incurred to Date | 7,465 | 7,465 | ||
Estimated Total Cost | 11,665 | 11,665 | ||
2015 Actions [Member] | Severance and Termination Benefits [Member] | Display and Packaging [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 576 | |||
Total Incurred to Date | 780 | 780 | ||
Estimated Total Cost | 880 | 880 | ||
2015 Actions [Member] | Severance and Termination Benefits [Member] | Paper And Industrial Converted Products [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 2,300 | |||
Total Incurred to Date | 7,362 | 7,362 | ||
Estimated Total Cost | 7,562 | 7,562 | ||
2015 Actions [Member] | Severance and Termination Benefits [Member] | Protective Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 39 | |||
Total Incurred to Date | 39 | 39 | ||
Estimated Total Cost | 39 | 39 | ||
2015 Actions [Member] | Severance and Termination Benefits [Member] | Corporate [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 210 | |||
Total Incurred to Date | 2,409 | 2,409 | ||
Estimated Total Cost | 2,759 | 2,759 | ||
2015 Actions [Member] | Asset Impairment / Disposal of Assets [Member] | Consumer Packaging [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | (53) | |||
Total Incurred to Date | (4,883) | (4,883) | ||
Estimated Total Cost | (4,883) | (4,883) | ||
2015 Actions [Member] | Asset Impairment / Disposal of Assets [Member] | Display and Packaging [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 194 | |||
Total Incurred to Date | 211 | 211 | ||
Estimated Total Cost | 211 | 211 | ||
2015 Actions [Member] | Asset Impairment / Disposal of Assets [Member] | Paper And Industrial Converted Products [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 230 | |||
Total Incurred to Date | 451 | 451 | ||
Estimated Total Cost | 451 | 451 | ||
2015 Actions [Member] | Other Costs [Member] | Consumer Packaging [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 441 | |||
Total Incurred to Date | 936 | 936 | ||
Estimated Total Cost | 1,936 | 1,936 | ||
2015 Actions [Member] | Other Costs [Member] | Display and Packaging [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 89 | |||
Total Incurred to Date | 89 | 89 | ||
Estimated Total Cost | 289 | 289 | ||
2015 Actions [Member] | Other Costs [Member] | Paper And Industrial Converted Products [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 102 | |||
Total Incurred to Date | 163 | 163 | ||
Estimated Total Cost | 413 | 413 | ||
2015 Actions [Member] | Other Costs [Member] | Corporate [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 0 | |||
Total Incurred to Date | 11 | 11 | ||
Estimated Total Cost | 11 | 11 | ||
2014 Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 418 | 1,928 | 2,027 | 6,256 |
Total Incurred to Date | 22,010 | 22,010 | ||
Estimated Total Cost | 22,110 | 22,110 | ||
2014 Actions [Member] | Severance and Termination Benefits [Member] | Consumer Packaging [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 33 | 136 | 836 | 824 |
Total Incurred to Date | 1,686 | 1,686 | ||
Estimated Total Cost | 1,686 | 1,686 | ||
2014 Actions [Member] | Severance and Termination Benefits [Member] | Display and Packaging [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | (9) | 590 | (9) | 590 |
Total Incurred to Date | 585 | 585 | ||
Estimated Total Cost | 585 | 585 | ||
2014 Actions [Member] | Severance and Termination Benefits [Member] | Paper And Industrial Converted Products [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 0 | 295 | 127 | 2,878 |
Total Incurred to Date | 3,404 | 3,404 | ||
Estimated Total Cost | 3,404 | 3,404 | ||
2014 Actions [Member] | Severance and Termination Benefits [Member] | Protective Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | (15) | 182 | (2) | 370 |
Total Incurred to Date | 758 | 758 | ||
Estimated Total Cost | 758 | 758 | ||
2014 Actions [Member] | Asset Impairment / Disposal of Assets [Member] | Consumer Packaging [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 0 | 631 | 0 | 631 |
Total Incurred to Date | 2,446 | 2,446 | ||
Estimated Total Cost | 2,446 | 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 charges | 0 | (27) | 0 | 665 |
Total Incurred to Date | 781 | 781 | ||
Estimated Total Cost | 781 | 781 | ||
2014 Actions [Member] | Asset Impairment / Disposal of Assets [Member] | Protective Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 100 | 0 | 133 | 0 |
Total Incurred to Date | 468 | 468 | ||
Estimated Total Cost | 468 | 468 | ||
2014 Actions [Member] | Other Costs [Member] | Consumer Packaging [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 14 | 19 | 90 | 39 |
Total Incurred to Date | 7,310 | 7,310 | ||
Estimated Total Cost | 7,310 | 7,310 | ||
2014 Actions [Member] | Other Costs [Member] | Display and Packaging [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 0 | 4 | 21 | 4 |
Total Incurred to Date | 2,756 | 2,756 | ||
Estimated Total Cost | 2,756 | 2,756 | ||
2014 Actions [Member] | Other Costs [Member] | Paper And Industrial Converted Products [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 82 | 105 | 381 | 77 |
Total Incurred to Date | 1,028 | 1,028 | ||
Estimated Total Cost | 1,078 | 1,078 | ||
2014 Actions [Member] | Other Costs [Member] | Protective Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 213 | (7) | 450 | 178 |
Total Incurred to Date | 788 | 788 | ||
Estimated Total Cost | 838 | 838 | ||
2013 and Earlier Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | (57) | 1,250 | 512 | 2,585 |
2013 and Earlier Actions [Member] | Consumer Packaging [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 0 | (395) | 0 | (617) |
2013 and Earlier Actions [Member] | Display and Packaging [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 0 | 105 | (39) | 523 |
2013 and Earlier Actions [Member] | Paper And Industrial Converted Products [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | (57) | 1,541 | 551 | 2,619 |
2013 and Earlier Actions [Member] | Protective Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 0 | 26 | 0 | 87 |
2013 and Earlier Actions [Member] | Corporate [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | $ 0 | $ (27) | $ 0 | $ (27) |
Restructuring and Asset Impai41
Restructuring and Asset Impairment - Restructuring Accrual Activity for Given Years (Details) $ in Thousands | 9 Months Ended |
Sep. 27, 2015USD ($) | |
2015 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | $ 0 |
Current year charges | 15,033 |
Cash receipts/(payments) | 20,662 |
Asset write downs/disposals | (24,924) |
Foreign currency translation | (185) |
Liability, Ending Balance | 10,586 |
2014 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 1,322 |
Current year charges | 2,175 |
Adjustments | (148) |
Cash receipts/(payments) | (2,791) |
Asset write downs/disposals | (133) |
Foreign currency translation | (16) |
Liability, Ending Balance | 409 |
Severance and Termination Benefits [Member] | 2015 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 0 |
Current year charges | 18,055 |
Cash receipts/(payments) | (7,284) |
Foreign currency translation | (185) |
Liability, Ending Balance | 10,586 |
Severance and Termination Benefits [Member] | 2014 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 859 |
Current year charges | 1,048 |
Adjustments | (96) |
Cash receipts/(payments) | (1,402) |
Foreign currency translation | 0 |
Liability, Ending Balance | 409 |
Asset Impairment / Disposal of Assets [Member] | 2015 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 0 |
Current year charges | (4,221) |
Cash receipts/(payments) | 29,145 |
Asset write downs/disposals | (24,924) |
Liability, Ending Balance | 0 |
Asset Impairment / Disposal of Assets [Member] | 2014 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 0 |
Current year charges | 133 |
Adjustments | 0 |
Cash receipts/(payments) | 0 |
Asset write downs/disposals | (133) |
Liability, Ending Balance | 0 |
Other Costs [Member] | 2015 Actions [Member] | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 0 |
Current year charges | 1,199 |
Cash receipts/(payments) | (1,199) |
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 | 994 |
Adjustments | (52) |
Cash receipts/(payments) | (1,389) |
Foreign currency translation | (16) |
Liability, Ending Balance | $ 0 |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 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 | (121,161) | (45,813) | |||
Amounts reclassified from accumulated other comprehensive loss | 237 | ||||
Net current-period other comprehensive income/ (loss) | $ (48,543) | $ (44,488) | (101,397) | (34,560) | |
Accumulated other comprehensive income (loss), net of tax, ending balance | (710,248) | (404,429) | (710,248) | (404,429) | |
Net Income [Member] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss | 20,001 | 11,242 | |||
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 | 1,844 | 1,261 | |||
Net current-period other comprehensive income/ (loss) | 1,454 | 80 | |||
Accumulated other comprehensive income (loss), net of tax, ending balance | (4,508) | (182) | (4,508) | (182) | |
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 | (153) | (1,192) | |||
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 | (8,239) | (531) | |||
Net current-period other comprehensive income/ (loss) | 11,915 | 11,903 | |||
Accumulated other comprehensive income (loss), net of tax, ending balance | (463,371) | (332,719) | (463,371) | (332,719) | |
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 | 20,154 | 12,434 | |||
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 | (114,766) | (46,543) | |||
Net current-period other comprehensive income/ (loss) | (114,766) | (46,543) | |||
Accumulated other comprehensive income (loss), net of tax, ending balance | $ (242,369) | $ (71,528) | $ (242,369) | $ (71,528) | |
[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 Comprehensi43
Accumulated Other Comprehensive Loss - Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | $ 1,242,592 | $ 1,262,503 | $ 3,697,234 | $ 3,700,151 |
Cost of sales | (1,013,219) | (1,040,059) | (3,007,155) | (3,038,996) |
Selling, general and administrative | (130,341) | (110,507) | (357,893) | (360,712) |
Income before income taxes | 65,794 | 93,111 | 262,040 | 250,176 |
Tax benefit | (24,775) | (27,539) | (75,019) | (79,322) |
Net of tax | 41,019 | 65,572 | 187,021 | 170,854 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net of tax | (5,062) | (4,002) | (20,001) | (11,242) |
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 | 2,477 | 596 | 245 | 1,922 |
Tax benefit | (767) | (303) | (92) | (730) |
Net of tax | 1,710 | 293 | 153 | 1,192 |
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 | 2,757 | 241 | 4,010 | (1,669) |
Cost of sales | 1,965 | 232 | 3,437 | 2,343 |
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 | (2,245) | 123 | (7,202) | 1,248 |
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 | (8,059) | (4,868) | (23,931) | (14,482) |
Selling, general and administrative | (2,686) | (1,622) | (7,976) | (4,826) |
Income before income taxes | (10,745) | (6,490) | (31,907) | (19,308) |
Tax benefit | 3,973 | 2,195 | 11,753 | 6,874 |
Net of tax | $ (6,772) | $ (4,295) | $ (20,154) | $ (12,434) |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Unfavorable position amounts included in accumulated other comprehensive loss related to cash flow hedges | $ 7,206 | $ 7,206 | $ 9,617 | ||
Accumulated other comprehensive income loss cumulative changes in net gain loss from cash flow hedge effect after tax | 4,508 | 4,508 | 5,962 | ||
Cumulative tax benefit on Cash Flow Hedges included in Accumulated Other Comprehensive Loss | 2,698 | 2,698 | 3,655 | ||
Increase (decrease) in tax benefit on Cash Flow Hedges | (368) | (957) | |||
Cumulative tax benefit on Defined Benefit Pensions | 250,306 | 250,306 | $ 256,840 | ||
Increase (decrease) in tax benefit on Defined Benefit Pensions | (3,965) | (6,534) | |||
Foreign currency translation adjustments | (4,413) | $ (250) | (4,574) | $ (115) | |
Non-Controlling Interests [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Foreign currency translation adjustments | $ (4,413) | $ (4,574) |
Goodwill and Other Intangible45
Goodwill and Other Intangible Assets - Changes in Goodwill by Segment (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
May. 31, 2015 | Sep. 27, 2015 | ||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | [1] | $ 1,177,962 | |
Acquisitions | 10,147 | ||
Dispositions | (1,727) | ||
Foreign currency translation | (40,463) | ||
Goodwill, ending balance | 1,145,919 | ||
Consumer Packaging [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 508,582 | ||
Acquisitions | $ 10,147 | 10,147 | |
Dispositions | (1,727) | ||
Foreign currency translation | (27,582) | ||
Goodwill, ending balance | 489,420 | ||
Display and Packaging [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 204,629 | ||
Acquisitions | 0 | ||
Dispositions | 0 | ||
Foreign currency translation | 0 | ||
Goodwill, ending balance | 204,629 | ||
Paper and Industrial Converted Products [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 243,586 | ||
Acquisitions | 0 | ||
Dispositions | 0 | ||
Foreign currency translation | (12,881) | ||
Goodwill, ending balance | 230,705 | ||
Protective Solutions [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 221,165 | ||
Acquisitions | 0 | ||
Dispositions | 0 | ||
Foreign currency translation | 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 Intangible46
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 | |
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | $ 437,374 | $ 438,130 | |
Accumulated Amortization | (181,231) | (157,195) | |
Other Intangible Assets, net | 256,143 | 280,935 | [1] |
Patents [Member] | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 12,963 | 13,883 | |
Customer Lists [Member] | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 385,818 | 385,466 | |
Trade Names [Member] | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 19,271 | 19,366 | |
Proprietary Technology [Member] | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 17,748 | 17,786 | |
Land Use Rights [Member] | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 293 | 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 Intangible47
Goodwill and Other Intangible Assets - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
May. 31, 2015USD ($) | Sep. 27, 2015USD ($)customer | Sep. 28, 2014USD ($) | Sep. 27, 2015USD ($)customerfacility | Sep. 28, 2014USD ($) | Dec. 31, 2014USD ($) | ||
Goodwill [Line Items] | |||||||
Acquisitions during the period | $ 10,147 | ||||||
Goodwill related to dispositions | (1,727) | ||||||
Goodwill | $ 1,145,919 | $ 1,145,919 | $ 1,177,962 | [1] | |||
Number of production facility | facility | 2 | ||||||
Aggregate amortization expenses | 8,533 | $ 7,040 | $ 24,857 | $ 20,863 | |||
Amortization expense on other intangible assets in 2015 | 33,700 | 33,700 | |||||
Amortization expense on other intangible assets in 2016 | 33,000 | 33,000 | |||||
Amortization expense on other intangible assets in 2017 | 32,200 | 32,200 | |||||
Amortization expense on other intangible assets in 2018 | 31,600 | 31,600 | |||||
Amortization expense on other intangible assets in 2019 | $ 30,200 | $ 30,200 | |||||
Number of Customers | customer | 1 | 1 | |||||
Blowmolding [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 116,400 | $ 116,400 | |||||
Tubes and Cores/Paper - Brazil Reporting Unit [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | 88,500 | 88,500 | |||||
Consumer Packaging Segment [Member] | |||||||
Goodwill [Line Items] | |||||||
Acquisitions during the period | $ 10,147 | 10,147 | |||||
Goodwill related to dispositions | (1,727) | ||||||
Goodwill | 489,420 | 489,420 | 508,582 | ||||
Display and Packaging [Member] | |||||||
Goodwill [Line Items] | |||||||
Acquisitions during the period | 0 | ||||||
Goodwill related to dispositions | 0 | ||||||
Goodwill | 204,629 | 204,629 | $ 204,629 | ||||
Display and Packaging [Member] | Display and Packaging Reporting Unit [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 204,600 | $ 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] | |||||||
Useful lives of other intangible assets | 12 years | ||||||
Impairment charge | $ 3,516 | ||||||
Number of production facility | facility | 2 | ||||||
Acquired during the period | $ 13,521 | ||||||
[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 Der48
Financial Instruments and Derivatives - Carrying Amount and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Long-term debt, net of current portion, Carrying Amount | $ 1,073,043 | $ 1,200,885 | [1] |
Long-term debt, net of current portion, Fair Value | $ 1,153,067 | $ 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 Der49
Financial Instruments and Derivatives - Additional Information (Details) $ in Thousands | 9 Months Ended | |
Sep. 27, 2015USD ($)MMBTUTt | Dec. 31, 2014USD ($) | |
Derivative [Line Items] | ||
Fair value of commodity cash flow hedges | $ (4,050) | $ (6,086) |
Commodity gain (loss) expected to be reclassified to the income statement during the next 12 months | (3,575) | |
Fair value of foreign currency cash flow hedges | (3,236) | (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 | (3,215) | |
Total fair value of other derivatives not designated as hedging instruments | $ (2,478) | $ (1,098) |
Natural Gas Swaps [Member] | ||
Derivative [Line Items] | ||
Approximate amount of commodity covered by swap contracts outstanding | MMBTU | 5.9 | |
Anticipated usage percentage covered by a swap contract for the current fiscal year | 74.00% | |
Anticipated usage percentage covered by a swap contract for the second succeeding fiscal year | 74.00% | |
Aluminum Swaps [Member] | ||
Derivative [Line Items] | ||
Anticipated usage percentage covered by a swap contract for the current fiscal year | 52.00% | |
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 | 1,224 | |
Containers [Member] | ||
Derivative [Line Items] | ||
Approximate amount of commodity covered by swap contracts outstanding | T | 660 |
Financial Instruments and Der50
Financial Instruments and Derivatives - Net Positions of Foreign Contracts (Details) - Sep. 27, 2015 - Cash Flow Hedging [Member] € 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 | RUB | PLN | EUR (€) | AUD | CAD | GBP (£) | TRY | COP | MXN | NZD |
Sell [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Net Purchase / (Sales) position of foreign currency cash flow hedges | AUD (1,616) | £ (2,366) | NZD (840) | |||||||
Purchase [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Net Purchase / (Sales) position of foreign currency cash flow hedges | RUB (304) | PLN (275) | € (7,307) | CAD (14,465) | TRY (2,256) | COP (4,440,059) | MXN (97,696) |
Financial Instruments and Der51
Financial Instruments and Derivatives - Net Positions of Other Derivatives Contract (Details) - Sep. 27, 2015 - Derivatives Not Designated as Hedging Instruments [Member] € in Thousands, £ in Thousands, MXN in Thousands, COP in Thousands | EUR (€) | GBP (£) | COP | MXN |
Sell [Member] | ||||
Derivative [Line Items] | ||||
Net Purchase / (Sales) position of other derivatives | € (19,175) | £ 0 | ||
Purchase [Member] | ||||
Derivative [Line Items] | ||||
Net Purchase / (Sales) position of other derivatives | COP (36,757,020) | MXN (237,727) |
Financial Instruments and Der52
Financial Instruments and Derivatives - Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | Accrued Expenses and Other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives instruments, liabilities | $ (3,641) | $ (5,808) |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives instruments, liabilities | (409) | (278) |
Derivatives Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | Prepaid Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives instruments, assets | 1,087 | 574 |
Derivatives Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | Accrued Expenses and Other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives instruments, liabilities | (4,323) | (4,100) |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | Prepaid Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives instruments, assets | 91 | 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 | $ (2,569) | $ (1,166) |
Financial Instruments and Der53
Financial Instruments and Derivatives - Effect of Derivative Instruments on Financial Performance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Foreign Exchange Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 4,784 | $ (55) | $ 7,974 | $ 420 |
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) | 2,757 | 241 | 4,010 | (1,669) |
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 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) | 1,965 | 232 | 3,437 | 2,343 |
Commodity Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | (1,728) | (1,250) | (5,080) | 1,519 |
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) | (2,244) | 123 | (7,201) | 1,248 |
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | (30) | 44 | 80 | 0 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized | (1,972) | 77 | (1,601) | (359) |
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 | $ (141) | $ (194) | $ (127) | $ (41) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 915 | $ 944 |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (4,050) | (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 | (3,236) | (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 | (2,478) | (1,098) |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 915 | 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 | (4,050) | (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 | (3,236) | (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 | (2,478) | (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 | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Retirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 5,735 | $ 5,491 | $ 17,076 | $ 16,283 |
Interest cost | 17,657 | 18,376 | 52,419 | 54,684 |
Expected return on plan assets | (23,485) | (23,290) | (69,738) | (69,342) |
Amortization of net transition obligation | 39 | 102 | 120 | 303 |
Amortization of prior service cost (credit) | 185 | 168 | 552 | 497 |
Amortization of net actuarial loss | 10,581 | 6,630 | 31,414 | 19,726 |
Net periodic benefit cost (income) | 10,712 | 7,477 | 31,843 | 22,151 |
Retiree Health and Life Insurance Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 195 | 181 | 579 | 539 |
Interest cost | 228 | 258 | 675 | 768 |
Expected return on plan assets | (411) | (398) | (1,218) | (1,187) |
Amortization of prior service cost (credit) | (26) | (345) | (77) | (1,026) |
Amortization of net actuarial loss | (34) | (65) | (102) | (192) |
Net periodic benefit cost (income) | $ (48) | $ (369) | $ (143) | $ (1,098) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to defined benefit retirement and retiree health and life insurance plans | $ 29,416,000 | $ 58,421,000 | ||
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 | 16,551,000 | 46,372,000 | ||
Projected contributions to retirement plan | 6,000,000 | |||
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 | 12,049,000 | ||
Projected contributions to retirement plan | 0 | |||
Recognized expense related to the plan | $ 4,215,000 | $ 3,242,000 | $ 11,144,000 | $ 8,728,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 37.70% | 29.60% | 28.60% | 31.70% |
Reserves for uncertain tax benefits | $ 2,200 | $ 2,200 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 9 Months Ended |
Sep. 27, 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 | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,242,592 | $ 1,262,503 | $ 3,697,234 | $ 3,700,151 |
Income before interest and income taxes | 79,481 | 106,029 | 302,549 | 288,872 |
Restructuring/Asset impairment charges | (19,551) | (5,908) | (29,637) | (11,571) |
Operating Segments [Member] | Consumer Packaging [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 521,499 | 479,609 | 1,572,490 | 1,418,200 |
Income before interest and income taxes | 55,282 | 49,769 | 166,840 | 140,783 |
Operating Segments [Member] | Paper And Industrial Converted Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 427,753 | 480,741 | 1,298,940 | 1,426,367 |
Income before interest and income taxes | 32,292 | 48,996 | 99,052 | 125,289 |
Operating Segments [Member] | Display and Packaging [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 162,945 | 177,364 | 450,334 | 497,543 |
Income before interest and income taxes | 5,405 | 2,007 | 7,278 | 9,549 |
Operating Segments [Member] | Protective Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 130,395 | 124,789 | 375,470 | 358,041 |
Income before interest and income taxes | 12,911 | 10,277 | 36,200 | 25,204 |
Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 29,084 | 27,583 | 86,587 | 84,655 |
Intersegment Sales [Member] | Consumer Packaging [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,587 | 1,008 | 4,588 | 2,916 |
Intersegment Sales [Member] | Paper And Industrial Converted Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 26,243 | 25,824 | 78,832 | 78,822 |
Intersegment Sales [Member] | Display and Packaging [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 523 | 385 | 1,371 | 1,165 |
Intersegment Sales [Member] | Protective Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 731 | 366 | 1,796 | 1,752 |
Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring/Asset impairment charges | (19,551) | (5,908) | (29,637) | (11,571) |
Other, net | $ (6,858) | $ 888 | 22,816 | $ (382) |
Operating Units 2 - 5 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Decrease due to revision of estimates | $ 32,543 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Apr. 07, 2015USD ($)defendant | Sep. 15, 2014USD ($)action | Mar. 30, 2014defendant | Mar. 29, 2015USD ($) | Sep. 27, 2015USD ($) | Sep. 28, 2014USD ($) | Dec. 31, 2014USD ($) | Nov. 08, 2011USD ($) |
Site Contingency [Line Items] | ||||||||
Environmental accrual | $ 25,595,000 | $ 59,253,000 | ||||||
Environmental remediation spent | 796,000 | $ 15,000,000 | ||||||
Number of actions | action | 81 | |||||||
Maximum penalty per day (usd 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 | 124,000,000 | |||||||
U.S. Mills [Member] | Lower Fox River [Member] | ||||||||
Site Contingency [Line Items] | ||||||||
Number of defendants | defendant | 5 | |||||||
Settlement amount | $ 14,700,000 | |||||||
U.S. Mills [Member] | Operating Units 2 - 5 [Member] | ||||||||
Site Contingency [Line Items] | ||||||||
Environmental accrual | $ 5,000,000 | 4,436,000 | ||||||
Environmental remediation spent | $ 232,000 | 564,000 | ||||||
Tegrant Holding Corporation [Member] | ||||||||
Site Contingency [Line Items] | ||||||||
Environmental accrual | 18,477,000 | 18,635,000 | $ 18,850,000 | |||||
Increase (decrease) due to revision of estimates | $ (324,000) | |||||||
Payment towards remediation of sites | 697,000 | |||||||
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 |