Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 03, 2016 | Jul. 21, 2016 | |
Document Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 3, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
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 | 100,237,148 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jul. 03, 2016 | Dec. 31, 2015 | [1] |
Current Assets | |||
Cash and cash equivalents | $ 107,748 | $ 182,434 | |
Trade accounts receivable, net of allowances | 669,085 | 627,962 | |
Other receivables | 46,427 | 46,801 | |
Inventories: | |||
Finished and in process | 151,213 | 139,589 | |
Materials and supplies | 246,367 | 245,894 | |
Prepaid expenses | 50,913 | 64,698 | |
Total Current Assets | 1,271,753 | 1,307,378 | |
Property, Plant and Equipment, Net | 1,109,013 | 1,112,036 | |
Goodwill | 1,151,556 | 1,140,461 | |
Other Intangible Assets, Net | 229,702 | 245,095 | |
Long-term Deferred Income Taxes | 49,247 | 52,626 | |
Other Assets | 153,605 | 156,089 | |
Total Assets | 3,964,876 | 4,013,685 | |
Current Liabilities | |||
Payable to suppliers | 491,044 | 508,057 | |
Accrued expenses and other | 276,579 | 294,227 | |
Notes payable and current portion of long-term debt | 51,719 | 113,097 | |
Accrued taxes | 5,344 | 7,135 | |
Total Current Liabilities | 824,686 | 922,516 | |
Long-term Debt, Net of Current Portion | 1,029,943 | 1,015,270 | |
Pension and Other Postretirement Benefits | 412,572 | 432,964 | |
Deferred Income Taxes | 80,072 | 72,933 | |
Other Liabilities | 41,887 | 37,129 | |
Commitments and Contingencies | |||
Sonoco Shareholders’ Equity | |||
Authorized 300,000 shares 100,299 and 100,944 shares issued and outstanding at July 3, 2016 and December 31, 2015, respectively | 7,175 | 7,175 | |
Capital in excess of stated value | 374,332 | 404,460 | |
Accumulated other comprehensive loss | (675,518) | (702,533) | |
Retained earnings | 1,846,903 | 1,803,827 | |
Total Sonoco Shareholders’ Equity | 1,552,892 | 1,512,929 | |
Noncontrolling Interests | 22,824 | 19,944 | |
Total Equity | 1,575,716 | 1,532,873 | |
Total Liabilities and Equity | $ 3,964,876 | $ 4,013,685 | |
[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 | Jul. 03, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, number of shares authorized | 300,000,000 | 300,000,000 |
Common stock, number of shares issued | 100,299,000 | 100,944,000 |
Common stock, number of shares outstanding | 100,299,000 | 100,944,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,205,680 | $ 1,248,590 | $ 2,431,956 | $ 2,454,642 |
Cost of sales | 963,667 | 1,008,274 | 1,944,690 | 1,993,936 |
Gross profit | 242,013 | 240,316 | 487,266 | 460,706 |
Selling, general and administrative expenses | 126,611 | 130,887 | 260,804 | 227,552 |
Restructuring/Asset impairment charges | 23,278 | 10,445 | 32,506 | 10,086 |
Income before interest and income taxes | 92,124 | 98,984 | 193,956 | 223,068 |
Interest expense | 14,092 | 14,237 | 28,281 | 28,012 |
Interest income | 548 | 636 | 950 | 1,190 |
Income before income taxes | 78,580 | 85,383 | 166,625 | 196,246 |
Provision for income taxes | 24,790 | 24,023 | 53,984 | 50,244 |
Income before equity in earnings of affiliates | 53,790 | 61,360 | 112,641 | 146,002 |
Equity in earnings of affiliates, net of tax | 2,928 | 3,269 | 4,267 | 4,315 |
Net income | 56,718 | 64,629 | 116,908 | 150,317 |
Net (income) attributable to noncontrolling interests | (466) | (250) | (742) | (158) |
Net income attributable to Sonoco | $ 56,252 | $ 64,379 | $ 116,166 | $ 150,159 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 101,281 | 101,428 | 101,514 | 101,406 |
Diluted (in shares) | 101,873 | 102,424 | 102,148 | 102,362 |
Net income attributable to Sonoco: | ||||
Basic (in usd per share) | $ 0.56 | $ 0.63 | $ 1.14 | $ 1.48 |
Diluted (in usd per share) | 0.55 | 0.63 | 1.14 | 1.47 |
Cash dividends (usd per share) | $ 0.37 | $ 0.35 | $ 0.72 | $ 0.67 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 56,718 | $ 64,629 | $ 116,908 | $ 150,317 |
Other comprehensive income/(loss): | ||||
Foreign currency translation adjustments | (17,389) | 3,740 | 13,439 | (59,246) |
Changes in defined benefit plans, net of tax | 3,006 | (1,125) | 8,954 | 5,148 |
Changes in derivative financial instruments, net of tax | 2,722 | 2,449 | 4,622 | 1,244 |
Other comprehensive income/(loss) | (11,661) | 5,064 | 27,015 | (52,854) |
Comprehensive income | 45,057 | 69,693 | 143,923 | 97,463 |
Net (income) attributable to noncontrolling interests | (466) | (250) | (742) | (158) |
Other comprehensive (income)/loss attributable to noncontrolling interests | (726) | (470) | (2,138) | 161 |
Comprehensive income attributable to Sonoco | $ 43,865 | $ 68,973 | $ 141,043 | $ 97,466 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | ||
Cash Flows from Operating Activities: | |||
Net income | $ 116,908 | $ 150,317 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Asset impairment | 4,199 | 2,462 | |
Depreciation, depletion and amortization | 105,530 | 104,024 | |
Gain on reversal of Fox River environmental reserves | 0 | (32,543) | |
Share-based compensation expense | 9,665 | 4,353 | |
Equity in earnings of affiliates | (4,267) | (4,315) | |
Cash dividends from affiliated companies | 4,575 | 1,150 | |
Net (gain)/loss on disposition of assets | 11,291 | (7,210) | |
Pension and postretirement plan expense | 22,244 | 27,965 | |
Pension and postretirement plan contributions | (35,647) | (25,118) | |
Tax effect of share-based compensation exercises | 1,290 | 3,513 | |
Excess tax benefit of share-based compensation | (1,331) | (3,521) | |
Net increase/(decrease) in deferred taxes | 3,613 | (9,487) | |
Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments: | |||
Trade accounts receivable | (40,357) | (33,084) | |
Inventories | (15,998) | (18,020) | |
Payable to suppliers | (7,669) | 14,913 | |
Prepaid expenses | 1,377 | (7,014) | |
Accrued expenses | (7,909) | 5,941 | |
Income taxes payable and other income tax items | 12,197 | 417 | |
Fox River environmental reserve spending | (580) | (720) | |
Other assets and liabilities | 6,918 | (941) | |
Net cash provided by operating activities | 186,049 | 173,082 | |
Cash Flows from Investing Activities: | |||
Purchase of property, plant and equipment | (98,774) | (86,713) | |
Cost of acquisitions, net of cash acquired | (863) | (15,697) | |
Cash paid for disposition of assets | (8,436) | 0 | |
Proceeds from the sale of assets | 3,594 | 31,006 | |
Investment in affiliates and other, net | 169 | (2,775) | |
Net cash used in investing activities | (104,310) | (74,179) | |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of debt | 186,926 | 40,240 | |
Principal repayment of debt | (248,817) | (23,575) | |
Net increase in commercial paper | 14,000 | 0 | |
Net increase/(decrease) in outstanding checks | 5,255 | (1,204) | |
Excess tax benefit of share-based compensation | 1,331 | 3,521 | |
Cash dividends | (72,679) | (67,379) | |
Shares acquired | (42,125) | (7,728) | |
Shares issued | 632 | 1,310 | |
Net cash used in financing activities | (155,477) | (54,815) | |
Effects of Exchange Rate Changes on Cash | (948) | 12,519 | |
Net (Decrease)/Increase in Cash and Cash Equivalents | (74,686) | 56,607 | |
Cash and cash equivalents at beginning of period | 182,434 | [1] | 161,168 |
Cash and cash equivalents at end of period | $ 107,748 | $ 217,775 | |
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Basis of Interim Presentation
Basis of Interim Presentation | 6 Months Ended |
Jul. 03, 2016 | |
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 six months ended July 3, 2016 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . With respect to the unaudited condensed consolidated financial information of the Company for the three- and six-month periods ended July 3, 2016 and June 28, 2015 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 August 3, 2016 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 | 6 Months Ended |
Jul. 03, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, "Financial Instruments - Credit Losses," which requires measurement and recognition of expected versus incurred credit losses for financial assets held. The guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within those annual periods. The Company does not expect the implementation of ASU 2016-13 to have a material effect on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for share-based payment transactions, including 1) accounting for income taxes, 2) classification of excess tax benefits in the statement of cash flows, 3) forfeitures, 4) minimum statutory tax withholding requirements, 5) cash flow classification of employee taxes withheld in the form of shares, 6) the practical expedient for estimating the expected term, and 7) intrinsic value. The guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. The Company does not expect the implementation of ASU 2016-09 to have a material effect on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers," "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)," which provides guidance on recording revenue on a gross basis versus a net basis based on the determination of whether an entity is a principal or an agent when another party is involved in providing goods or services to a customer. The amendments in this Update affect the guidance in ASU No. 2014-09 and are effective in the same time frame as ASU 2014-09 as discussed below. In February 2016, the FASB issued ASU 2016-02, which changes accounting for leases and requires lessees to recognize the assets and liabilities arising from all leases, including those classified as operating leases under previous accounting guidance on the balance sheet and requires disclosure of key information about leasing arrangements to increase transparency and comparability among organizations. The accounting for lessors does not fundamentally change except for changes to conform and align guidance to the lessee guidance. The guidance is effective for reporting periods beginning after December 15, 2018, including interim periods within those fiscal years and requires retrospective application. The Company is still assessing the impact of ASU 2016-02 on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which 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 was effective for reporting periods beginning after December 15, 2015, and was required to be applied on a retrospective basis. Accordingly, the Company adopted ASU 2015-03 on January 1, 2016. Debt issuance costs totaling $6,584 previously included in "Other Assets" have been reclassified to "Long-Term Debt, Net of Current Portion" on the Company's Condensed Consolidated Balance Sheets as of December 31, 2015. In May 2014, the FASB issued ASU 2014-09, "Revenue From Contracts With Customers," which 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 six- month periods ended July 3, 2016 , 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 July 3, 2016 , there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Jul. 03, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The Company completed the acquisition of a small tube and core business in Australia on June 24, 2016. The all-cash purchase price of the business was $863 . In conjunction with this acquisition, the Company recorded net tangible assets of $149 , identifiable intangibles of $297 , and goodwill of $417 , none of which is expected to be tax deductible. This acquisition is expected to generate approximately $800 of annual sales in the Paper and Industrial Converted Products segment. Acquisition-related costs of $822 and $2,082 were incurred in the three months ended July 3, 2016 and June 28, 2015 , respectively. These costs totaled $1,148 and $3,247 for the six months ended July 3, 2016 and June 28, 2015 , 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 | 6 Months Ended |
Jul. 03, 2016 | |
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 Six Months Ended July 3, June 28, July 3, June 28, Numerator: Net income attributable to Sonoco $ 56,252 $ 64,379 $ 116,166 $ 150,159 Denominator: Weighted average common shares outstanding: Basic 101,281,000 101,428,000 101,514,000 101,406,000 Dilutive effect of stock-based compensation 592,000 996,000 634,000 956,000 Diluted 101,873,000 102,424,000 102,148,000 102,362,000 Reported net income attributable to Sonoco per common share: Basic $ 0.56 $ 0.63 $ 1.14 $ 1.48 Diluted $ 0.55 $ 0.63 $ 1.14 $ 1.47 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. These stock appreciation rights may become dilutive in the future if the market price of the Company's common stock appreciates. The average number of stock appreciation rights that were not dilutive and therefore not included in the computation of diluted earnings per share during the three- and six- month periods ended July 3, 2016 and June 28, 2015 was as follows: Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Anti-dilutive stock appreciation rights — 595,527 714,872 495,705 No adjustments were made to reported net income attributable to Sonoco in the computations of earnings per share. Stock Repurchases On February 10, 2016, the Company’s Board of Directors authorized the repurchase of up to 5,000,000 shares of the Company's common stock. During the six months ended July 3, 2016 , a total of 835,218 shares were repurchased under this authorization at a cost of $37,931 ; accordingly, at July 3, 2016 , a total of 4,164,782 shares remain available for repurchase. These repurchases were made under the Company’s previously announced plan to utilize up to $100,000 to repurchase shares during 2016. 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 99,227 shares in the six months ended July 3, 2016 at a cost of $4,194 , and 169,487 shares in the six months ended June 28, 2015 at a cost of $7,728 . Dividend Declarations On April 20, 2016 , the Board of Directors declared a regular quarterly dividend of $0.37 per share. This dividend was paid on June 10, 2016 to all shareholders of record as of May 13, 2016 . On July 20, 2016 , the Board of Directors declared a regular quarterly dividend of $0.37 per share. This dividend is payable September 9, 2016 to all shareholders of record as of August 12, 2016 . |
Restructuring and Asset Impairm
Restructuring and Asset Impairment | 6 Months Ended |
Jul. 03, 2016 | |
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 2016 and 2015 are reported as “2016 Actions” and “2015 Actions,” respectively. Actions initiated prior to 2015, all of which were substantially complete at July 3, 2016 , are reported as “2014 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: 2016 2015 Second Quarter Six Months Second Quarter Six Months Restructuring/Asset impairment: 2016 Actions $ 19,632 $ 26,045 $ — $ — 2015 Actions 3,508 6,274 8,760 7,909 2014 and Earlier Actions 138 187 1,685 2,177 Restructuring/Asset impairment charges $ 23,278 $ 32,506 $ 10,445 $ 10,086 Income tax benefit $ (5,425 ) (8,345 ) $ (3,683 ) (15,276 ) Costs attributable to noncontrolling interests, net of tax (38 ) (45 ) (55 ) (70 ) Total impact of restructuring/asset impairment charges, net of tax $ 17,815 $ 24,116 $ 6,707 $ (5,260 ) 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 $3,850 in connection with previously announced restructuring actions. The Company believes that the majority of these charges will be incurred and paid by the end of 2016. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken. 2016 Actions During 2016, the Company announced the closure of a packaging services center in Mexico (part of the Display and Packaging segment), a fulfillment service center in Brazil (part of the Display and Packaging segment), a tubes and cores plant in Ecuador (part of the Paper and Industrial Converted Products segment), and a tubes and cores plant in Switzerland (part of the Paper and Industrial Converted Products segment). The Company also began manufacturing rationalization efforts in its Reels division (part of the Paper and Industrial Converted Products segment), completed the sale of a paper mill in France (part of the Paper and Industrial Converted Products segment), and announced the planned sale of a retail security packaging plant in Puerto Rico (part of the Display and Packaging segment), which was subsequently completed on July 5, 2016. In addition, approximately 95 positions were eliminated in the first half of 2016 in conjunction with the Company's ongoing organizational effectiveness efforts. Below is a summary of 2016 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2016 Actions Second Quarter 2016 Total Estimated Severance and Termination Benefits Consumer Packaging $ 487 $ 1,452 $ 1,702 Display and Packaging 1,277 2,653 3,403 Paper and Industrial Converted Products 1,730 $ 4,141 4,641 Protective Solutions 38 360 360 Corporate 10 1,439 1,439 Asset Impairment / Disposal of Assets Consumer Packaging — (306 ) (306 ) Display and Packaging 2,237 2,237 2,237 Paper and Industrial Converted Products 13,279 13,279 13,279 Other Costs Consumer Packaging 104 302 652 Display and Packaging 11 11 61 Paper and Industrial Converted Products 459 477 1,327 Total Charges and Adjustments $ 19,632 $ 26,045 $ 28,795 The following table sets forth the activity in the 2016 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: 2016 Actions Severance Termination Asset Impairment/ Disposal Other Costs Total Accrual Activity Liability at December 31, 2015 $ — $ — $ — $ — 2016 charges 10,045 15,210 790 26,045 Cash payments (6,220 ) (7,322 ) (472 ) (14,014 ) Asset write downs/disposals — (7,888 ) — (7,888 ) Foreign currency translation (6 ) — (4 ) (10 ) Liability at July 3, 2016 $ 3,819 $ — $ 314 $ 4,133 Included in "Asset Impairment/Disposal of Assets" above is a loss of $12,694 from the sale of a paperboard mill in France in May 2016. Included in this loss was the divestiture of $8,436 of cash required in order to consummate the disposition with the acquiror. Other assets divested in connection with the sale included net fixed assets of $3,201 , and other tangible assets, net of liabilities disposed, of $1,057 . Also included in "Asset Impairment/Disposal of Assets" is the impairment of $1,947 of intangible assets related to the sale of a retail security packaging business in Puerto Rico, which was committed to during the second quarter and completed on July 5, 2016, subsequent to the end of the quarter. "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 2016 Actions restructuring costs by the end of 2016 using cash generated from operations. 2015 Actions During 2015, the Company initiated the following restructuring actions in its Consumer Packaging segment: the closure of six rigid paper facilities ( two in the United States, one in Canada, one in Russia, one in Germany, and one in the United Kingdom); the closure of a production line at a thermoforming plant in the United States; and the sale of a portion of its metal ends and closures business in the United States. Restructuring actions initiated in the Paper and Industrial Converted Products segment include the closures of a tubes and cores plant and a recycling business in the United States. The Company also recognized an asset impairment charge related to the potential disposition of a paperboard mill in France. Restructuring actions initiated in the Display and Packaging segment consisted of the closure of a printed backer card facility in the United States. In addition, the Company continued to realign its cost structure, resulting in the elimination of approximately 235 positions. Below is a summary of 2015 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2016 2015 Total Incurred Estimated 2015 Actions Second Quarter Six Months Second Quarter Six Months Severance and Termination Benefits Consumer Packaging $ 1,044 $ 2,834 $ 2,266 $ 4,468 $ 17,881 $ 18,031 Display and Packaging 86 92 204 204 1,207 1,207 Paper and Industrial Converted Products 62 160 2,035 5,062 8,639 8,639 Protective Solutions — — — — 39 39 Corporate — — 1,033 2,200 2,775 2,775 Asset Impairment / Disposal of Assets Consumer Packaging $ 1,784 1,774 2,502 (4,830 ) (2,529 ) (2,529 ) Display and Packaging 335 335 17 17 809 809 Paper and Industrial Converted Products — — 219 221 10,198 10,198 Other Costs Consumer Packaging $ 154 529 420 495 1,929 2,679 Display and Packaging 139 139 — — 490 540 Paper and Industrial Converted Products (96 ) 411 53 61 662 712 Corporate — — 11 11 11 11 Total Charges and Adjustments $ 3,508 $ 6,274 $ 8,760 $ 7,909 $ 42,111 $ 43,111 The following table sets forth the activity in the 2015 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: 2015 Actions Severance Asset Other Total Accrual Activity 2016 Year to Date Liability at December 31, 2015 $ 15,376 $ — $ — $ 15,376 2016 charges 3,161 2,119 1,242 6,522 Adjustments (75 ) (10 ) (163 ) (248 ) Cash payments (10,596 ) 10 (1,072 ) (11,658 ) Asset write downs/disposals — (2,119 ) — (2,119 ) Foreign currency translation (25 ) — 5 (20 ) Liability at July 3, 2016 $ 7,841 $ — $ 12 $ 7,853 “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 2016 using cash generated from operations. 2014 and Earlier Actions 2014 and Earlier Actions are comprised of a number of plant closures and workforce reductions initiated prior to 2015. Charges for these actions in both 2016 and 2015 relate primarily to the cost of plant closures including severance, equipment removal, plant security, property taxes and insurance. The Company expects to recognize future pretax charges of approximately $100 associated with 2014 and Earlier Actions. Below is a summary of expenses/(income) incurred by segment for 2014 and Earlier Actions for the three- and six- month periods ended July 3, 2016 and June 28, 2015 . 2016 2015 2014 & Earlier Actions Second Quarter Six Months Second Quarter Six Months Consumer Packaging $ — $ — $ 847 $ 879 Display and Packaging — — (17 ) (17 ) Paper and Industrial Converted Products 55 53 667 1,032 Protective Solutions 83 134 188 283 Total Charges and Adjustments $ 138 $ 187 $ 1,685 $ 2,177 The accrual for 2014 and Earlier Actions totaled $340 and $824 at July 3, 2016 and December 31, 2015 , 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 the liability associated with 2014 and Earlier Actions to be paid by the end of 2016 using cash generated from operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jul. 03, 2016 | |
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 six months ended July 3, 2016 and June 28, 2015 : Gains and Losses on Cash Flow Hedges Defined Benefit Pension Items Foreign Currency Items Accumulated Other Comprehensive Loss Balance at December 31, 2015 $ (5,152 ) $ (444,244 ) $ (253,137 ) $ (702,533 ) Other comprehensive income/(loss) before reclassifications 2,121 (3,190 ) 13,439 12,370 Amounts reclassified from accumulated other comprehensive loss to net income 2,523 12,144 — 14,667 Amounts reclassified from accumulated other comprehensive loss to fixed assets (22 ) — — (22 ) Net current-period other comprehensive income 4,622 8,954 13,439 27,015 Balance at July 3, 2016 $ (530 ) $ (435,290 ) $ (239,698 ) $ (675,518 ) Balance at December 31, 2014 $ (5,962 ) $ (475,286 ) $ (127,603 ) $ (608,851 ) Other comprehensive income/(loss) before reclassifications (3,858 ) (8,234 ) (59,246 ) (71,338 ) Amounts reclassified from accumulated other comprehensive loss to net income 5,339 13,382 — 18,721 Amounts reclassified from accumulated other comprehensive loss to fixed assets (237 ) — — (237 ) Net current-period other comprehensive 1,244 5,148 (59,246 ) (52,854 ) Balance at June 28, 2015 $ (4,718 ) $ (470,138 ) $ (186,849 ) $ (661,705 ) 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 six- month periods ended July 3, 2016 and June 28, 2015 : Amount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended Details about Accumulated Other Comprehensive Loss Components July 3, June 28, July 3, June 28, Affected Line Item in the Condensed Consolidated Statements of Net Income Gains and losses on cash flow hedges Foreign exchange contracts $ (607 ) $ (4,201 ) $ (2,847 ) $ (8,289 ) Net sales Foreign exchange contracts 387 2,106 1,432 4,507 Cost of sales Commodity contracts (1,294 ) (2,534 ) (2,805 ) (4,957 ) Cost of sales (1,514 ) (4,629 ) (4,220 ) (8,739 ) Total before tax 505 1,801 1,697 3,400 Tax benefit $ (1,009 ) $ (2,828 ) $ (2,523 ) $ (5,339 ) Net of tax Defined benefit pension items Amortization of defined benefit pension items (a) $ (7,368 ) $ (8,427 ) $ (14,511 ) $ (15,872 ) Cost of sales Amortization of defined benefit pension items (a) (2,456 ) (2,809 ) (4,837 ) (5,290 ) Selling, general and (9,824 ) (11,236 ) (19,348 ) (21,162 ) Total before tax 3,628 4,127 7,204 7,780 Tax benefit $ (6,196 ) $ (7,109 ) $ (12,144 ) $ (13,382 ) Net of tax Total reclassifications for the period $ (7,205 ) $ (9,937 ) $ (14,667 ) $ (18,721 ) Net of tax (a) See Note 10 for additional details. At July 3, 2016 , 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 $708 ( $530 after tax) at July 3, 2016 , and net losses of $8,036 ( $5,152 after tax) at December 31, 2015 . The cumulative tax benefit on Cash Flow Hedges included in Accumulated Other Comprehensive Loss was $178 at July 3, 2016 , and $2,884 at December 31, 2015 . During the three- and six- month periods ended July 3, 2016 , the tax benefit on Cash Flow Hedges changed by $(1,324) and $(2,706) , respectively. The cumulative tax benefit on Defined Benefit Pension Items was $242,802 at July 3, 2016 , and $247,788 at December 31, 2015 . During the three- and six- month periods ended July 3, 2016 , the tax benefit on Defined Benefit Pension Items changed by $(1,423) and $(4,986) , respectively. During the three- and six- month periods ended July 3, 2016 , changes in noncontrolling interests included foreign currency translation adjustments of $726 and $2,138 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jul. 03, 2016 | |
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 six months ended July 3, 2016 is as follows: Consumer Packaging Display and Packaging Paper and Industrial Converted Products Protective Solutions Total Goodwill at December 31, 2015 $ 487,342 $ 204,629 $ 227,325 $ 221,165 $ 1,140,461 Acquisitions — — 417 — 417 Foreign currency translation 8,337 — 2,412 — 10,749 Other (71 ) — — — (71 ) Goodwill at July 3, 2016 $ 495,608 $ 204,629 $ 230,154 $ 221,165 $ 1,151,556 In June 2016, the Company acquired a small tubes and cores business in Australia. In connection with this acquisition, the Company recognized $417 of Goodwill. See Note 3 for additional information. The Company assesses goodwill for impairment annually and from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. As part of this testing, the Company analyzes certain qualitative and quantitative factors in determining goodwill impairment. In its most recent annual assessment, completed in the third quarter of 2015, the Company concluded that there was no impairment of goodwill for any of its reporting units. The assessment reflected a number of significant management assumptions and estimates including the Company's forecast of sales volumes and prices, profit margins, income taxes, capital expenditures and changes in working capital requirements. Changes in these assumptions and/or discount rates could materially impact the Company's conclusions. Although no reporting units failed the assessments noted above, in management’s opinion, the reporting units having the greatest risk of a significant future impairment if actual results fall short of expectations are Display and Packaging, and Paper and Industrial Converted Products - Europe. Total goodwill associated with these reporting units was approximately $204,600 and $91,400 , respectively, at July 3, 2016 . A large portion of sales in the Display and Packaging reporting unit is concentrated in one customer. Subsequent to the annual testing in the third quarter of 2015, this customer informed the Company of its decision not to renew a contract to continue operating a packaging center in Irapuato, Mexico. This triggering event resulted in a reassessment of the most recent annual impairment test for the Display and Packaging reporting unit completed as of the third quarter of 2015. Accordingly, the Company reperformed the impairment analysis for this reporting unit taking into consideration the effect on sales and operating profit of the lower business volume and concluded that goodwill in the Display and Packaging reporting unit was not impaired. The remaining business with this customer is currently under negotiations for contract renewal. If a significant amount of business were lost and not replaced under similar terms, it is likely that a goodwill impairment charge could be incurred. There have been no other triggering events identified between the most recent annual impairment test and July 3, 2016 . Other Intangible Assets A summary of other intangible assets as of July 3, 2016 and December 31, 2015 is as follows: July 3, December 31, Other Intangible Assets, gross Patents $ 12,858 $ 12,716 Customer lists 383,247 381,938 Trade names 19,260 19,246 Proprietary technology 17,744 17,738 Land use rights 298 297 Other 1,243 1,223 Other Intangible Assets, gross $ 434,650 $ 433,158 Accumulated Amortization $ (204,948 ) $ (188,063 ) Other Intangible Assets, net $ 229,702 $ 245,095 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 $297 of identifiable intangibles in connection with a 2016 acquisition, the majority of which related to a customer list. These intangibles will be amortized over their expected life of 10 years. See Note 3 for additional information. Also during 2016, the Company recognized the impairment of customer lists totaling $1,947 in connection with the sale of a retail security packaging business in Puerto Rico. See Note 5 for additional information. Aggregate amortization expense was $8,231 and $8,174 for the three months ended July 3, 2016 and June 28, 2015 , respectively, and $16,567 and $16,324 , for the six months ended July 3, 2016 and June 28, 2015 , respectively. Amortization expense on other intangible assets is expected to total approximately $32,400 in 2016, $31,600 in 2017, $30,800 in 2018, $29,400 in 2019 and $27,700 in 2020. |
Financial Instruments and Deriv
Financial Instruments and Derivatives | 6 Months Ended |
Jul. 03, 2016 | |
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. July 3, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, net of current portion $ 1,029,943 $ 1,154,528 $ 1,015,270 $ 1,081,732 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 July 3, 2016 and December 31, 2015 , 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 2016 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 July 3, 2016 , natural gas swaps covering approximately 8.3 MMBTUs were outstanding. These contracts represent approximately 75% and 75% of anticipated U.S. and Canadian usage for the remainder of 2016 and 2017, respectively. Additionally, the Company had swap contracts covering 2,228 metric tons of aluminum and 1,320 short tons of OCC, representing approximately 54% and 1% of anticipated usage for the remainder of 2016, respectively. The fair values of the Company’s commodity cash flow hedges netted to a gain position of $960 at July 3, 2016 and a loss position of $(3,611) at December 31, 2015 . The amount of the gain included in Accumulated Other Comprehensive Loss at July 3, 2016 , that is expected to be reclassified to the income statement during the next twelve months is $207 . 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 2016. The net positions of these contracts at July 3, 2016 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 3,413,426 Mexican peso purchase 273,554 Canadian dollar purchase 41,341 Russian ruble purchase 8,846 British pound purchase 4,615 Turkish lira purchase 674 New Zealand dollar sell (313 ) Australian dollar sell (1,018 ) Polish zloty sell (1,501 ) Euro sell (5,009 ) The fair value of these foreign currency cash flow hedges netted to a loss position of $(1,421) at July 3, 2016 and $(4,612) at December 31, 2015 . During the six months ended July 3, 2016 , certain foreign currency cash flow hedges related to construction in progress were settled as the related capital expenditures were made. Losses from these hedges totaling $22 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 $(1,394) 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 July 3, 2016 , were as follows (in thousands): Currency Action Quantity Colombian peso purchase 32,120,961 Mexican peso purchase 236,789 Canadian dollar purchase 22,163 British pound purchase 20,500 Euro sell (14,493 ) The fair value of the Company’s other derivatives was $(890) and $(2,180) at July 3, 2016 and December 31, 2015 , respectively. The following table sets forth the location and fair values of the Company’s derivative instruments at July 3, 2016 and December 31, 2015 : Description Balance Sheet Location July 3, December 31, Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ 781 $ 8 Commodity Contracts Other assets $ 757 $ — Commodity Contracts Accrued expenses and other $ (576 ) $ (3,425 ) Commodity Contracts Other liabilities $ (2 ) $ (194 ) Foreign Exchange Contracts Prepaid expenses $ 887 $ 156 Foreign Exchange Contracts Accrued expenses and other $ (2,308 ) $ (4,768 ) Derivatives not designated as hedging instruments: Foreign Exchange Contracts Prepaid expenses $ 32 $ 50 Foreign Exchange Contracts Accrued expenses and other $ (922 ) $ (2,230 ) 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 July 3, 2016 and June 28, 2015 : 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 July 3, 2016 Foreign Exchange Contracts $ (797 ) Net sales $ (607 ) Net sales $ — Cost of sales $ 387 Commodity Contracts $ 3,249 Cost of sales $ (1,294 ) Cost of sales $ (108 ) Three months ended June 28, 2015 Foreign Exchange Contracts $ 530 Net sales $ (4,201 ) Net sales $ — Cost of sales $ 2,106 Commodity Contracts $ (1,242 ) Cost of sales $ (2,534 ) Cost of sales $ 70 Description Location of Gain or (Loss) Recognized in Income Statement Gain or (Loss) Recognized Derivatives not Designated as Hedging Instruments: Three months ended July 3, 2016 Foreign Exchange Contracts Cost of sales $ — Selling, general and administrative $ 1,352 Three months ended June 28, 2015 Foreign Exchange Contracts Cost of sales $ — Selling, general and administrative $ 1,293 The following tables set forth the effect of the Company’s derivative instruments on financial performance for the six months ended July 3, 2016 and June 28, 2015 : 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: Six months ended July 3, 2016 Foreign Exchange Contracts $ 1,570 Net sales $ (2,847 ) Net sales $ — Cost of sales $ 1,432 Commodity Contracts $ 1,516 Cost of sales $ (2,805 ) Cost of sales $ 2 Six months ended June 28, 2015 Foreign Exchange Contracts $ (3,791 ) Net sales $ (8,289 ) Net sales $ — Cost of sales $ 4,507 Commodity Contracts $ (3,352 ) Cost of sales $ (4,957 ) Cost of sales $ 110 Description Location of Gain or (Loss) Recognized in Income Statement Gain or (Loss) Recognized Derivatives not Designated as Hedging Instruments: Six months ended July 3, 2016 Foreign Exchange Contracts Cost of sales $ — Selling, general and administrative $ 1,116 Six months ended June 28, 2015 Foreign Exchange Contracts Cost of sales $ — Selling, general and administrative $ 761 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 03, 2016 | |
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 July 3, Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ 960 $ — $ 960 $ — Foreign exchange contracts (1,421 ) — (1,421 ) — Non-hedge derivatives, net: Foreign exchange contracts (890 ) — (890 ) — Deferred compensation plan assets 477 477 — — Description December 31, Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (3,611 ) $ — $ (3,611 ) $ — Foreign exchange contracts (4,612 ) — (4,612 ) — Non-hedge derivatives, net: Foreign exchange contracts (2,180 ) — (2,180 ) — Deferred compensation plan assets 460 460 — — As discussed in Note 8, the Company uses derivatives to mitigate the effect of raw material and energy cost fluctuations, foreign currency fluctuations and, from time to time, interest rate movements. Fair value measurements for the Company’s derivatives are classified under Level 2 because such measurements are estimated based on observable inputs such as interest rates, yield curves, spot and future commodity prices and spot and future exchange rates. Certain deferred compensation plan liabilities are funded by assets invested in various exchange traded mutual funds. These assets are measured using quoted prices in accessible active markets for identical assets. The Company does not currently have any 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 six- month periods ended July 3, 2016 . |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jul. 03, 2016 | |
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. The Company also sponsors contributory defined benefit pension plans covering the majority of its employees in the United Kingdom, Canada, and the Netherlands. In addition, the Company provides postretirement healthcare and life insurance benefits to a limited number of its retirees and their dependents in the United States and Canada, based on certain age and/or service eligibility requirements. The Company froze participation in its U.S. qualified defined benefit pension plan effective December 31, 2003 for newly hired salaried and non-union hourly employees. At that time, the Company adopted a defined contribution plan, the Sonoco Investment and Retirement Plan (SIRP), covering its non-union U.S. employees hired on or after January 1, 2004, and former participants of the U.S. qualified defined benefit pension plan who elected to transfer out of that plan and into the SIRP under a one-time option effective January 1, 2010. On January 1, 2013, the SIRP was merged into the Sonoco Savings Plan and the name was changed to the Sonoco Retirement and Savings Plan. The Company provides an annual contribution to participant accounts in the Sonoco Retirement and Savings Plan, called the Sonoco Retirement Contribution (SRC), equal to 4% of the participant's eligible pay plus 4% of eligible pay in excess of the social security wage base. On February 4, 2009, the U.S. qualified defined benefit pension plan was amended to freeze plan benefits for all active participants effective December 31, 2018. Remaining active participants in the U.S. qualified plan will become eligible for SRC contributions effective January 1, 2019. The components of net periodic benefit cost include the following: Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Retirement Plans Service cost $ 4,799 $ 6,088 $ 9,822 $ 11,341 Interest cost 14,984 17,829 30,310 34,762 Expected return on plan assets (21,388 ) (23,527 ) (43,432 ) (46,253 ) Amortization of net transition obligation — 41 — 81 Amortization of prior service cost 188 187 381 367 Amortization of net actuarial loss 9,960 11,105 19,556 20,833 Net periodic benefit cost $ 8,543 $ 11,723 $ 16,637 $ 21,131 Retiree Health and Life Insurance Plans Service cost $ 71 $ 206 $ 156 $ 384 Interest cost 114 225 244 447 Expected return on plan assets (394 ) (414 ) (798 ) (807 ) Amortization of prior service credit (124 ) (26 ) (252 ) (51 ) Amortization of net actuarial gain (200 ) (63 ) (337 ) (68 ) Net periodic benefit income $ (533 ) $ (72 ) $ (987 ) $ (95 ) The Company made aggregate contributions of $22,295 and $12,253 to its defined benefit retirement and retiree health and life insurance plans during the six months ended July 3, 2016 and June 28, 2015 , respectively. The Company anticipates that it will make additional aggregate contributions of approximately $10,300 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2016. Sonoco Retirement Contribution (SRC) The Sonoco Retirement Contribution, which is funded annually in the first quarter, totaled $13,352 during the six months ended July 3, 2016 , and $12,865 during the six months ended June 28, 2015 . No additional SRC contributions are expected during the remainder of 2016. The Company recognized expense related to the SRC of $3,577 and $3,302 for the quarters ended July 3, 2016 and June 28, 2015 , respectively, and $6,595 and $6,929 for the six-month periods ended July 3, 2016 and June 28, 2015 , respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 03, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the three- and six- month periods ending July 3, 2016 , was 31.5% and 32.4% , respectively, and its effective tax rate for the three- and six- month periods ending June 28, 2015 , was 28.1% and 25.6% , respectively. The rates for the three- and six-month periods of both years varied from the U.S. statutory rate due 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 effective tax rates for the three- and six-month periods ended June 28, 2015 were further reduced by the recognition of beneficial tax attributes associated with the disposition of the Company's Canton, Ohio metal ends and closures facilities. The Company and/or its subsidiaries file federal, state and local income tax returns in the United States and various foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, or non-U.S., income tax examinations by tax authorities for years before 2012. With respect to state and local income taxes, the Company is no longer subject to examination for years prior to 2011, with few exceptions. The Company is currently under audit by the Internal Revenue Service for the 2012 and 2013 tax years. The Company’s total liability for uncertain tax benefits has not changed significantly since December 31, 2015 . The Company has $2,400 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 | 6 Months Ended |
Jul. 03, 2016 | |
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 six months ended June 28, 2015 is largely comprised of a $32,543 gain from the reversal of environmental liability reserves related to the Fox River environmental claims. SEGMENT FINANCIAL INFORMATION Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Net sales: Consumer Packaging $ 511,007 $ 531,114 $ 1,038,345 $ 1,050,991 Display and Packaging 130,874 141,604 275,141 287,389 Paper and Industrial Converted Products 433,342 448,876 856,416 871,187 Protective Solutions 130,457 126,996 262,054 245,075 Consolidated $ 1,205,680 $ 1,248,590 $ 2,431,956 $ 2,454,642 Intersegment sales: Consumer Packaging $ 1,596 $ 1,321 $ 2,928 $ 3,001 Display and Packaging 626 451 1,123 848 Paper and Industrial Converted Products 23,536 25,038 49,917 52,589 Protective Solutions 286 457 872 1,065 Consolidated $ 26,044 $ 27,267 $ 54,840 $ 57,503 Income before interest and income taxes: Segment operating profit: Consumer Packaging $ 59,509 $ 57,530 $ 122,374 $ 111,558 Display and Packaging 5,030 1,035 8,311 1,873 Paper and Industrial Converted Products 37,480 38,963 70,779 66,760 Protective Solutions 14,220 13,604 26,246 23,289 Restructuring/Asset impairment charges (23,278 ) (10,445 ) (32,506 ) (10,086 ) Other, net (837 ) (1,703 ) (1,248 ) 29,674 Consolidated $ 92,124 $ 98,984 $ 193,956 $ 223,068 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 03, 2016 | |
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 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 terms of the settlement, which became final on April 7, 2015, required U.S. Mills to pay $14,700 , which was paid in April 2014, and protects 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, 2015 , U.S. Mills had reserves totaling $3,896 for potential liabilities associated with the Appvion claim. Through July 3, 2016 , the Company has spent approximately $580 on legal costs related to this claim, leaving a reserve of $3,316 remaining at July 3, 2016 . 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 is limited to the equity position of U.S. Mills, which was approximately $127,500 at July 3, 2016 . 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 $774 on remediation of these sites. During 2014 and 2015, the Company increased its reserves for these sites by a total of $392 in order to reflect its best estimate of what it is likely to pay in order to complete the remediation. At July 3, 2016 and December 31, 2015 , the Company's accrual for Tegrant's environmental contingencies totaled $18,468 and $18,521 , 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 The previously disclosed actions instituted by the Village of Rockton against the Company on September 15, 2014, were dismissed with prejudice by stipulation of the parties on April 19, 2016, with no impact to the Company’s financial statements. Other environmental matters The Company has been named as a potentially responsible party at several other environmentally contaminated sites. All of the sites are also the responsibility of other parties. The potential remediation liabilities are shared with such other parties, and, in most cases, the Company’s share, if any, cannot be reasonably estimated at the current time. However, the Company does not believe that the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company's financial statements. Summary As of July 3, 2016 and December 31, 2015 , the Company (and its subsidiaries) had accrued $24,542 and $25,195 , 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) | 6 Months Ended |
Jul. 03, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, "Financial Instruments - Credit Losses," which requires measurement and recognition of expected versus incurred credit losses for financial assets held. The guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within those annual periods. The Company does not expect the implementation of ASU 2016-13 to have a material effect on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for share-based payment transactions, including 1) accounting for income taxes, 2) classification of excess tax benefits in the statement of cash flows, 3) forfeitures, 4) minimum statutory tax withholding requirements, 5) cash flow classification of employee taxes withheld in the form of shares, 6) the practical expedient for estimating the expected term, and 7) intrinsic value. The guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. The Company does not expect the implementation of ASU 2016-09 to have a material effect on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers," "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)," which provides guidance on recording revenue on a gross basis versus a net basis based on the determination of whether an entity is a principal or an agent when another party is involved in providing goods or services to a customer. The amendments in this Update affect the guidance in ASU No. 2014-09 and are effective in the same time frame as ASU 2014-09 as discussed below. In February 2016, the FASB issued ASU 2016-02, which changes accounting for leases and requires lessees to recognize the assets and liabilities arising from all leases, including those classified as operating leases under previous accounting guidance on the balance sheet and requires disclosure of key information about leasing arrangements to increase transparency and comparability among organizations. The accounting for lessors does not fundamentally change except for changes to conform and align guidance to the lessee guidance. The guidance is effective for reporting periods beginning after December 15, 2018, including interim periods within those fiscal years and requires retrospective application. The Company is still assessing the impact of ASU 2016-02 on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which 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 was effective for reporting periods beginning after December 15, 2015, and was required to be applied on a retrospective basis. Accordingly, the Company adopted ASU 2015-03 on January 1, 2016. Debt issuance costs totaling $6,584 previously included in "Other Assets" have been reclassified to "Long-Term Debt, Net of Current Portion" on the Company's Condensed Consolidated Balance Sheets as of December 31, 2015. In May 2014, the FASB issued ASU 2014-09, "Revenue From Contracts With Customers," which 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 six- month periods ended July 3, 2016 , 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 July 3, 2016 , there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Equity [Abstract] | |
Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Numerator: Net income attributable to Sonoco $ 56,252 $ 64,379 $ 116,166 $ 150,159 Denominator: Weighted average common shares outstanding: Basic 101,281,000 101,428,000 101,514,000 101,406,000 Dilutive effect of stock-based compensation 592,000 996,000 634,000 956,000 Diluted 101,873,000 102,424,000 102,148,000 102,362,000 Reported net income attributable to Sonoco per common share: Basic $ 0.56 $ 0.63 $ 1.14 $ 1.48 Diluted $ 0.55 $ 0.63 $ 1.14 $ 1.47 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The average number of stock appreciation rights that were not dilutive and therefore not included in the computation of diluted earnings per share during the three- and six- month periods ended July 3, 2016 and June 28, 2015 was as follows: Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Anti-dilutive stock appreciation rights — 595,527 714,872 495,705 |
Restructuring and Asset Impai22
Restructuring and Asset Impairment (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
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: 2016 2015 Second Quarter Six Months Second Quarter Six Months Restructuring/Asset impairment: 2016 Actions $ 19,632 $ 26,045 $ — $ — 2015 Actions 3,508 6,274 8,760 7,909 2014 and Earlier Actions 138 187 1,685 2,177 Restructuring/Asset impairment charges $ 23,278 $ 32,506 $ 10,445 $ 10,086 Income tax benefit $ (5,425 ) (8,345 ) $ (3,683 ) (15,276 ) Costs attributable to noncontrolling interests, net of tax (38 ) (45 ) (55 ) (70 ) Total impact of restructuring/asset impairment charges, net of tax $ 17,815 $ 24,116 $ 6,707 $ (5,260 ) |
Actions and Related Expenses by Segment and by Type Incurred and Estimated for Given Years | Below is a summary of 2016 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2016 Actions Second Quarter 2016 Total Estimated Severance and Termination Benefits Consumer Packaging $ 487 $ 1,452 $ 1,702 Display and Packaging 1,277 2,653 3,403 Paper and Industrial Converted Products 1,730 $ 4,141 4,641 Protective Solutions 38 360 360 Corporate 10 1,439 1,439 Asset Impairment / Disposal of Assets Consumer Packaging — (306 ) (306 ) Display and Packaging 2,237 2,237 2,237 Paper and Industrial Converted Products 13,279 13,279 13,279 Other Costs Consumer Packaging 104 302 652 Display and Packaging 11 11 61 Paper and Industrial Converted Products 459 477 1,327 Total Charges and Adjustments $ 19,632 $ 26,045 $ 28,795 Below is a summary of 2015 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion. 2016 2015 Total Incurred Estimated 2015 Actions Second Quarter Six Months Second Quarter Six Months Severance and Termination Benefits Consumer Packaging $ 1,044 $ 2,834 $ 2,266 $ 4,468 $ 17,881 $ 18,031 Display and Packaging 86 92 204 204 1,207 1,207 Paper and Industrial Converted Products 62 160 2,035 5,062 8,639 8,639 Protective Solutions — — — — 39 39 Corporate — — 1,033 2,200 2,775 2,775 Asset Impairment / Disposal of Assets Consumer Packaging $ 1,784 1,774 2,502 (4,830 ) (2,529 ) (2,529 ) Display and Packaging 335 335 17 17 809 809 Paper and Industrial Converted Products — — 219 221 10,198 10,198 Other Costs Consumer Packaging $ 154 529 420 495 1,929 2,679 Display and Packaging 139 139 — — 490 540 Paper and Industrial Converted Products (96 ) 411 53 61 662 712 Corporate — — 11 11 11 11 Total Charges and Adjustments $ 3,508 $ 6,274 $ 8,760 $ 7,909 $ 42,111 $ 43,111 Below is a summary of expenses/(income) incurred by segment for 2014 and Earlier Actions for the three- and six- month periods ended July 3, 2016 and June 28, 2015 . 2016 2015 2014 & Earlier Actions Second Quarter Six Months Second Quarter Six Months Consumer Packaging $ — $ — $ 847 $ 879 Display and Packaging — — (17 ) (17 ) Paper and Industrial Converted Products 55 53 667 1,032 Protective Solutions 83 134 188 283 Total Charges and Adjustments $ 138 $ 187 $ 1,685 $ 2,177 |
Restructuring Accrual Activity for Given Years | The following table sets forth the activity in the 2015 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: 2015 Actions Severance Asset Other Total Accrual Activity 2016 Year to Date Liability at December 31, 2015 $ 15,376 $ — $ — $ 15,376 2016 charges 3,161 2,119 1,242 6,522 Adjustments (75 ) (10 ) (163 ) (248 ) Cash payments (10,596 ) 10 (1,072 ) (11,658 ) Asset write downs/disposals — (2,119 ) — (2,119 ) Foreign currency translation (25 ) — 5 (20 ) Liability at July 3, 2016 $ 7,841 $ — $ 12 $ 7,853 The following table sets forth the activity in the 2016 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: 2016 Actions Severance Termination Asset Impairment/ Disposal Other Costs Total Accrual Activity Liability at December 31, 2015 $ — $ — $ — $ — 2016 charges 10,045 15,210 790 26,045 Cash payments (6,220 ) (7,322 ) (472 ) (14,014 ) Asset write downs/disposals — (7,888 ) — (7,888 ) Foreign currency translation (6 ) — (4 ) (10 ) Liability at July 3, 2016 $ 3,819 $ — $ 314 $ 4,133 |
Accumulated Other Comprehensi23
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
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 six months ended July 3, 2016 and June 28, 2015 : Gains and Losses on Cash Flow Hedges Defined Benefit Pension Items Foreign Currency Items Accumulated Other Comprehensive Loss Balance at December 31, 2015 $ (5,152 ) $ (444,244 ) $ (253,137 ) $ (702,533 ) Other comprehensive income/(loss) before reclassifications 2,121 (3,190 ) 13,439 12,370 Amounts reclassified from accumulated other comprehensive loss to net income 2,523 12,144 — 14,667 Amounts reclassified from accumulated other comprehensive loss to fixed assets (22 ) — — (22 ) Net current-period other comprehensive income 4,622 8,954 13,439 27,015 Balance at July 3, 2016 $ (530 ) $ (435,290 ) $ (239,698 ) $ (675,518 ) Balance at December 31, 2014 $ (5,962 ) $ (475,286 ) $ (127,603 ) $ (608,851 ) Other comprehensive income/(loss) before reclassifications (3,858 ) (8,234 ) (59,246 ) (71,338 ) Amounts reclassified from accumulated other comprehensive loss to net income 5,339 13,382 — 18,721 Amounts reclassified from accumulated other comprehensive loss to fixed assets (237 ) — — (237 ) Net current-period other comprehensive 1,244 5,148 (59,246 ) (52,854 ) Balance at June 28, 2015 $ (4,718 ) $ (470,138 ) $ (186,849 ) $ (661,705 ) |
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 six- month periods ended July 3, 2016 and June 28, 2015 : Amount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended Details about Accumulated Other Comprehensive Loss Components July 3, June 28, July 3, June 28, Affected Line Item in the Condensed Consolidated Statements of Net Income Gains and losses on cash flow hedges Foreign exchange contracts $ (607 ) $ (4,201 ) $ (2,847 ) $ (8,289 ) Net sales Foreign exchange contracts 387 2,106 1,432 4,507 Cost of sales Commodity contracts (1,294 ) (2,534 ) (2,805 ) (4,957 ) Cost of sales (1,514 ) (4,629 ) (4,220 ) (8,739 ) Total before tax 505 1,801 1,697 3,400 Tax benefit $ (1,009 ) $ (2,828 ) $ (2,523 ) $ (5,339 ) Net of tax Defined benefit pension items Amortization of defined benefit pension items (a) $ (7,368 ) $ (8,427 ) $ (14,511 ) $ (15,872 ) Cost of sales Amortization of defined benefit pension items (a) (2,456 ) (2,809 ) (4,837 ) (5,290 ) Selling, general and (9,824 ) (11,236 ) (19,348 ) (21,162 ) Total before tax 3,628 4,127 7,204 7,780 Tax benefit $ (6,196 ) $ (7,109 ) $ (12,144 ) $ (13,382 ) Net of tax Total reclassifications for the period $ (7,205 ) $ (9,937 ) $ (14,667 ) $ (18,721 ) Net of tax (a) See Note 10 for additional details. |
Goodwill and Other Intangible24
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill by Segment | A summary of the changes in goodwill by segment for the six months ended July 3, 2016 is as follows: Consumer Packaging Display and Packaging Paper and Industrial Converted Products Protective Solutions Total Goodwill at December 31, 2015 $ 487,342 $ 204,629 $ 227,325 $ 221,165 $ 1,140,461 Acquisitions — — 417 — 417 Foreign currency translation 8,337 — 2,412 — 10,749 Other (71 ) — — — (71 ) Goodwill at July 3, 2016 $ 495,608 $ 204,629 $ 230,154 $ 221,165 $ 1,151,556 |
Summary of Other Intangible Assets | A summary of other intangible assets as of July 3, 2016 and December 31, 2015 is as follows: July 3, December 31, Other Intangible Assets, gross Patents $ 12,858 $ 12,716 Customer lists 383,247 381,938 Trade names 19,260 19,246 Proprietary technology 17,744 17,738 Land use rights 298 297 Other 1,243 1,223 Other Intangible Assets, gross $ 434,650 $ 433,158 Accumulated Amortization $ (204,948 ) $ (188,063 ) Other Intangible Assets, net $ 229,702 $ 245,095 |
Financial Instruments and Der25
Financial Instruments and Derivatives (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
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. July 3, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, net of current portion $ 1,029,943 $ 1,154,528 $ 1,015,270 $ 1,081,732 |
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 2016. The net positions of these contracts at July 3, 2016 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 3,413,426 Mexican peso purchase 273,554 Canadian dollar purchase 41,341 Russian ruble purchase 8,846 British pound purchase 4,615 Turkish lira purchase 674 New Zealand dollar sell (313 ) Australian dollar sell (1,018 ) Polish zloty sell (1,501 ) Euro sell (5,009 ) |
Net Positions of Other Derivatives Contract | The net positions of these contracts at July 3, 2016 , were as follows (in thousands): Currency Action Quantity Colombian peso purchase 32,120,961 Mexican peso purchase 236,789 Canadian dollar purchase 22,163 British pound purchase 20,500 Euro sell (14,493 ) |
Location and Fair Values of Derivative Instruments | The following table sets forth the location and fair values of the Company’s derivative instruments at July 3, 2016 and December 31, 2015 : Description Balance Sheet Location July 3, December 31, Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ 781 $ 8 Commodity Contracts Other assets $ 757 $ — Commodity Contracts Accrued expenses and other $ (576 ) $ (3,425 ) Commodity Contracts Other liabilities $ (2 ) $ (194 ) Foreign Exchange Contracts Prepaid expenses $ 887 $ 156 Foreign Exchange Contracts Accrued expenses and other $ (2,308 ) $ (4,768 ) Derivatives not designated as hedging instruments: Foreign Exchange Contracts Prepaid expenses $ 32 $ 50 Foreign Exchange Contracts Accrued expenses and other $ (922 ) $ (2,230 ) |
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 July 3, 2016 Foreign Exchange Contracts $ (797 ) Net sales $ (607 ) Net sales $ — Cost of sales $ 387 Commodity Contracts $ 3,249 Cost of sales $ (1,294 ) Cost of sales $ (108 ) Three months ended June 28, 2015 Foreign Exchange Contracts $ 530 Net sales $ (4,201 ) Net sales $ — Cost of sales $ 2,106 Commodity Contracts $ (1,242 ) Cost of sales $ (2,534 ) Cost of sales $ 70 Description Location of Gain or (Loss) Recognized in Income Statement Gain or (Loss) Recognized Derivatives not Designated as Hedging Instruments: Three months ended July 3, 2016 Foreign Exchange Contracts Cost of sales $ — Selling, general and administrative $ 1,352 Three months ended June 28, 2015 Foreign Exchange Contracts Cost of sales $ — Selling, general and administrative $ 1,293 The following tables set forth the effect of the Company’s derivative instruments on financial performance for the six months ended July 3, 2016 and June 28, 2015 : 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: Six months ended July 3, 2016 Foreign Exchange Contracts $ 1,570 Net sales $ (2,847 ) Net sales $ — Cost of sales $ 1,432 Commodity Contracts $ 1,516 Cost of sales $ (2,805 ) Cost of sales $ 2 Six months ended June 28, 2015 Foreign Exchange Contracts $ (3,791 ) Net sales $ (8,289 ) Net sales $ — Cost of sales $ 4,507 Commodity Contracts $ (3,352 ) Cost of sales $ (4,957 ) Cost of sales $ 110 Description Location of Gain or (Loss) Recognized in Income Statement Gain or (Loss) Recognized Derivatives not Designated as Hedging Instruments: Six months ended July 3, 2016 Foreign Exchange Contracts Cost of sales $ — Selling, general and administrative $ 1,116 Six months ended June 28, 2015 Foreign Exchange Contracts Cost of sales $ — Selling, general and administrative $ 761 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
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 July 3, Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ 960 $ — $ 960 $ — Foreign exchange contracts (1,421 ) — (1,421 ) — Non-hedge derivatives, net: Foreign exchange contracts (890 ) — (890 ) — Deferred compensation plan assets 477 477 — — Description December 31, Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (3,611 ) $ — $ (3,611 ) $ — Foreign exchange contracts (4,612 ) — (4,612 ) — Non-hedge derivatives, net: Foreign exchange contracts (2,180 ) — (2,180 ) — Deferred compensation plan assets 460 460 — — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost include the following: Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Retirement Plans Service cost $ 4,799 $ 6,088 $ 9,822 $ 11,341 Interest cost 14,984 17,829 30,310 34,762 Expected return on plan assets (21,388 ) (23,527 ) (43,432 ) (46,253 ) Amortization of net transition obligation — 41 — 81 Amortization of prior service cost 188 187 381 367 Amortization of net actuarial loss 9,960 11,105 19,556 20,833 Net periodic benefit cost $ 8,543 $ 11,723 $ 16,637 $ 21,131 Retiree Health and Life Insurance Plans Service cost $ 71 $ 206 $ 156 $ 384 Interest cost 114 225 244 447 Expected return on plan assets (394 ) (414 ) (798 ) (807 ) Amortization of prior service credit (124 ) (26 ) (252 ) (51 ) Amortization of net actuarial gain (200 ) (63 ) (337 ) (68 ) Net periodic benefit income $ (533 ) $ (72 ) $ (987 ) $ (95 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Segment Reporting [Abstract] | |
Segment Financial Information | SEGMENT FINANCIAL INFORMATION Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Net sales: Consumer Packaging $ 511,007 $ 531,114 $ 1,038,345 $ 1,050,991 Display and Packaging 130,874 141,604 275,141 287,389 Paper and Industrial Converted Products 433,342 448,876 856,416 871,187 Protective Solutions 130,457 126,996 262,054 245,075 Consolidated $ 1,205,680 $ 1,248,590 $ 2,431,956 $ 2,454,642 Intersegment sales: Consumer Packaging $ 1,596 $ 1,321 $ 2,928 $ 3,001 Display and Packaging 626 451 1,123 848 Paper and Industrial Converted Products 23,536 25,038 49,917 52,589 Protective Solutions 286 457 872 1,065 Consolidated $ 26,044 $ 27,267 $ 54,840 $ 57,503 Income before interest and income taxes: Segment operating profit: Consumer Packaging $ 59,509 $ 57,530 $ 122,374 $ 111,558 Display and Packaging 5,030 1,035 8,311 1,873 Paper and Industrial Converted Products 37,480 38,963 70,779 66,760 Protective Solutions 14,220 13,604 26,246 23,289 Restructuring/Asset impairment charges (23,278 ) (10,445 ) (32,506 ) (10,086 ) Other, net (837 ) (1,703 ) (1,248 ) 29,674 Consolidated $ 92,124 $ 98,984 $ 193,956 $ 223,068 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Details) - New Accounting Pronouncement, Early Adoption, Effect $ in Thousands | Dec. 31, 2015USD ($) |
Other Assets | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred finance costs, net | $ (6,584) |
Long-term Debt | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred finance costs, net | $ 6,584 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Jun. 24, 2016 | Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | Dec. 31, 2015 | [1] |
Business Acquisition [Line Items] | |||||||
Cash paid during acquisition | $ 863 | $ 15,697 | |||||
Goodwill | $ 1,151,556 | 1,151,556 | $ 1,140,461 | ||||
Acquisition related costs | $ 822 | $ 2,082 | $ 1,148 | $ 3,247 | |||
Australian Tube and Core Business | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid during acquisition | $ 863 | ||||||
Net assets, excluding intangibles | 149 | ||||||
Intangibles acquired | 297 | ||||||
Goodwill | 417 | ||||||
Expected annual revenue | $ 800 | ||||||
[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 | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Numerator: | ||||
Net income attributable to Sonoco | $ 56,252 | $ 64,379 | $ 116,166 | $ 150,159 |
Denominator: | ||||
Basic (in shares) | 101,281 | 101,428 | 101,514 | 101,406 |
Dilutive effect of stock-based compensation (in shares) | 592 | 996 | 634 | 956 |
Diluted (in shares) | 101,873 | 102,424 | 102,148 | 102,362 |
Reported net income attributable to Sonoco per common share: | ||||
Basic (in usd per share) | $ 0.56 | $ 0.63 | $ 1.14 | $ 1.48 |
Diluted (in usd per share) | $ 0.55 | $ 0.63 | $ 1.14 | $ 1.47 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 20, 2016 | Apr. 20, 2016 | Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | Feb. 10, 2016 |
Class of Stock [Line Items] | |||||||
Number of securities excluded from computation of dilutive earning per share | 0 | 714,872 | 595,527 | 495,705 | |||
Number of shares authorized for repurchase | 5,000,000 | ||||||
Number of shares repurchased | 835,218 | ||||||
Number of shares available for repurchase | 4,164,782 | 4,164,782 | |||||
Remaining amount to be utilized to repurchase shares | $ 100,000 | $ 100,000 | |||||
Cost of shares repurchased | $ 37,931 | ||||||
Dividend declared date | Apr. 20, 2016 | ||||||
Dividend declared and payable (in usd per share) | $ 0.37 | ||||||
Dividend payable date | Jun. 10, 2016 | ||||||
Dividend payable date of record | May 13, 2016 | ||||||
Tax Withholding Obligations | |||||||
Class of Stock [Line Items] | |||||||
Number of shares repurchased | 99,227 | 169,487 | |||||
Cost of shares repurchased | $ 4,194 | $ 7,728 | |||||
Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Dividend declared date | Jul. 20, 2016 | ||||||
Dividend declared and payable (in usd per share) | $ 0.37 | ||||||
Dividend payable date | Sep. 9, 2016 | ||||||
Dividend payable date of record | Aug. 12, 2016 |
Restructuring and Asset Impai33
Restructuring and Asset Impairment - Restructuring and Asset Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | $ 23,278 | $ 10,445 | $ 32,506 | $ 10,086 |
Income tax benefit | (5,425) | (3,683) | (8,345) | (15,276) |
Costs attributable to noncontrolling interests, net of tax | (38) | (55) | (45) | (70) |
Total impact of restructuring/asset impairment charges, net of tax | 17,815 | 6,707 | 24,116 | (5,260) |
2016 Actions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 19,632 | 0 | 26,045 | 0 |
2015 Actions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | 3,508 | 8,760 | 6,274 | 7,909 |
2014 and Earlier Actions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring/Asset impairment charges | $ 138 | $ 1,685 | $ 187 | $ 2,177 |
Restructuring and Asset Impai34
Restructuring and Asset Impairment - Additional Information (Details) $ in Thousands | Jul. 05, 2016USD ($) | Jul. 03, 2016USD ($)position | Dec. 31, 2015USD ($)facilityposition |
Restructuring Cost and Reserve [Line Items] | |||
Expected future charges associated with previous restructuring on earnings | $ 3,850 | ||
Number of facilities closed | facility | 6 | ||
United States | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed | facility | 2 | ||
Canada | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed | facility | 1 | ||
Russia | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed | facility | 1 | ||
Germany | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed | facility | 1 | ||
United Kingdom | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed | facility | 1 | ||
Paper Mill | France | |||
Restructuring Cost and Reserve [Line Items] | |||
Loss on disposition of business | 12,694 | ||
Retail Security Packaging Business | Puerto Rico | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of intangible assets | $ 1,947 | ||
2015 Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Elimination of positions due to realign in cost structure | position | 95 | 235 | |
2014 and Earlier Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected future charges associated with previous restructuring on earnings | $ 100 | ||
Remaining restructuring accrual | 340 | $ 824 | |
Cash and Cash Equivalents | Paper Mill | France | |||
Restructuring Cost and Reserve [Line Items] | |||
Loss on disposition of business | (8,436) | ||
Other Assets | Paper Mill | France | |||
Restructuring Cost and Reserve [Line Items] | |||
Loss on disposition of business | (1,057) | ||
Property, Plant and Equipment, Net | Paper Mill | France | |||
Restructuring Cost and Reserve [Line Items] | |||
Loss on disposition of business | $ (3,201) | ||
Subsequent Event | Retail Security Packaging Business | Puerto Rico | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of intangible assets | $ 1,947 |
Restructuring and Asset Impai35
Restructuring and Asset Impairment - Actions and Related Expenses by Segment and by Type Incurred and Estimated for Given Years (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2016USD ($)position | Jun. 28, 2015USD ($) | Jul. 03, 2016USD ($)position | Jun. 28, 2015USD ($) | Dec. 31, 2015position | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | $ (23,278) | $ (10,445) | $ (32,506) | $ (10,086) | |
2016 Actions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (19,632) | 0 | (26,045) | 0 | |
Total Incurred to Date | 26,045 | 26,045 | |||
Estimated Total Cost | 28,795 | 28,795 | |||
2016 Actions | Severance and Termination Benefits | Consumer Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (487) | ||||
Total Incurred to Date | 1,452 | 1,452 | |||
Estimated Total Cost | 1,702 | 1,702 | |||
2016 Actions | Severance and Termination Benefits | Display and Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (1,277) | ||||
Total Incurred to Date | 2,653 | 2,653 | |||
Estimated Total Cost | 3,403 | 3,403 | |||
2016 Actions | Severance and Termination Benefits | Paper And Industrial Converted Products | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (1,730) | ||||
Total Incurred to Date | 4,141 | 4,141 | |||
Estimated Total Cost | 4,641 | 4,641 | |||
2016 Actions | Severance and Termination Benefits | Protective Solutions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (38) | ||||
Total Incurred to Date | 360 | 360 | |||
Estimated Total Cost | 360 | 360 | |||
2016 Actions | Severance and Termination Benefits | Corporate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (10) | ||||
Total Incurred to Date | 1,439 | 1,439 | |||
Estimated Total Cost | 1,439 | 1,439 | |||
2016 Actions | Asset Impairment / Disposal of Assets | Consumer Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | 0 | ||||
Total Incurred to Date | 306 | 306 | |||
Estimated Total Cost | 306 | 306 | |||
2016 Actions | Asset Impairment / Disposal of Assets | Display and Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (2,237) | ||||
Total Incurred to Date | 2,237 | 2,237 | |||
Estimated Total Cost | 2,237 | 2,237 | |||
2016 Actions | Asset Impairment / Disposal of Assets | Paper And Industrial Converted Products | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (13,279) | ||||
Total Incurred to Date | 13,279 | 13,279 | |||
Estimated Total Cost | 13,279 | 13,279 | |||
2016 Actions | Other Costs | Consumer Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (104) | ||||
Total Incurred to Date | 302 | 302 | |||
Estimated Total Cost | 652 | 652 | |||
2016 Actions | Other Costs | Display and Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (11) | ||||
Total Incurred to Date | 11 | 11 | |||
Estimated Total Cost | 61 | 61 | |||
2016 Actions | Other Costs | Paper And Industrial Converted Products | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (459) | ||||
Total Incurred to Date | 477 | 477 | |||
Estimated Total Cost | $ 1,327 | $ 1,327 | |||
2015 Actions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Number of Positions Eliminated, Inception to Date | position | 95 | 95 | 235 | ||
Restructuring/Asset impairment charges | $ (3,508) | (8,760) | $ (6,274) | (7,909) | |
Total Incurred to Date | 42,111 | 42,111 | |||
Estimated Total Cost | 43,111 | 43,111 | |||
2015 Actions | Severance and Termination Benefits | Consumer Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (1,044) | (2,266) | (2,834) | (4,468) | |
Total Incurred to Date | 17,881 | 17,881 | |||
Estimated Total Cost | 18,031 | 18,031 | |||
2015 Actions | Severance and Termination Benefits | Display and Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (86) | (204) | (92) | (204) | |
Total Incurred to Date | 1,207 | 1,207 | |||
Estimated Total Cost | 1,207 | 1,207 | |||
2015 Actions | Severance and Termination Benefits | Paper And Industrial Converted Products | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (62) | (2,035) | (160) | (5,062) | |
Total Incurred to Date | 8,639 | 8,639 | |||
Estimated Total Cost | 8,639 | 8,639 | |||
2015 Actions | Severance and Termination Benefits | Protective Solutions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | 0 | 0 | 0 | 0 | |
Total Incurred to Date | 39 | 39 | |||
Estimated Total Cost | 39 | 39 | |||
2015 Actions | Severance and Termination Benefits | Corporate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | 0 | (1,033) | 0 | (2,200) | |
Total Incurred to Date | 2,775 | 2,775 | |||
Estimated Total Cost | 2,775 | 2,775 | |||
2015 Actions | Asset Impairment / Disposal of Assets | Consumer Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (1,784) | (2,502) | (1,774) | 4,830 | |
Total Incurred to Date | (2,529) | (2,529) | |||
Estimated Total Cost | (2,529) | (2,529) | |||
2015 Actions | Asset Impairment / Disposal of Assets | Display and Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (335) | (17) | (335) | (17) | |
Total Incurred to Date | 809 | 809 | |||
Estimated Total Cost | 809 | 809 | |||
2015 Actions | Asset Impairment / Disposal of Assets | Paper And Industrial Converted Products | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | 0 | (219) | 0 | (221) | |
Total Incurred to Date | 10,198 | 10,198 | |||
Estimated Total Cost | 10,198 | 10,198 | |||
2015 Actions | Other Costs | Consumer Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (154) | (420) | (529) | (495) | |
Total Incurred to Date | 1,929 | 1,929 | |||
Estimated Total Cost | 2,679 | 2,679 | |||
2015 Actions | Other Costs | Display and Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (139) | 0 | (139) | 0 | |
Total Incurred to Date | 490 | 490 | |||
Estimated Total Cost | 540 | 540 | |||
2015 Actions | Other Costs | Paper And Industrial Converted Products | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | 96 | (53) | (411) | (61) | |
Total Incurred to Date | 662 | 662 | |||
Estimated Total Cost | 712 | 712 | |||
2015 Actions | Other Costs | Corporate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | 0 | (11) | 0 | (11) | |
Total Incurred to Date | 11 | 11 | |||
Estimated Total Cost | 11 | 11 | |||
2014 and Earlier Actions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (138) | (1,685) | (187) | (2,177) | |
2014 and Earlier Actions | Consumer Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | 0 | (847) | 0 | (879) | |
2014 and Earlier Actions | Display and Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | 0 | 17 | 0 | 17 | |
2014 and Earlier Actions | Paper And Industrial Converted Products | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | (55) | (667) | (53) | (1,032) | |
2014 and Earlier Actions | Protective Solutions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring/Asset impairment charges | $ (83) | $ (188) | $ (134) | $ (283) |
Restructuring and Asset Impai36
Restructuring and Asset Impairment - Restructuring Accrual Activity for Given Years (Details) $ in Thousands | 6 Months Ended |
Jul. 03, 2016USD ($) | |
2016 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | $ 0 |
Current year charges | 26,045 |
Cash receipts/(payments) | (14,014) |
Asset write downs/disposals | (7,888) |
Foreign currency translation | (10) |
Liability, Ending Balance | 4,133 |
2015 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 15,376 |
Current year charges | 6,522 |
Adjustments | (248) |
Cash receipts/(payments) | (11,658) |
Asset write downs/disposals | (2,119) |
Foreign currency translation | (20) |
Liability, Ending Balance | 7,853 |
Severance and Termination Benefits | 2016 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 0 |
Current year charges | 10,045 |
Cash receipts/(payments) | (6,220) |
Foreign currency translation | (6) |
Liability, Ending Balance | 3,819 |
Severance and Termination Benefits | 2015 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 15,376 |
Current year charges | 3,161 |
Adjustments | (75) |
Cash receipts/(payments) | (10,596) |
Foreign currency translation | (25) |
Liability, Ending Balance | 7,841 |
Asset Impairment / Disposal of Assets | 2016 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 0 |
Current year charges | 15,210 |
Cash receipts/(payments) | (7,322) |
Asset write downs/disposals | (7,888) |
Liability, Ending Balance | 0 |
Asset Impairment / Disposal of Assets | 2015 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 0 |
Current year charges | 2,119 |
Adjustments | (10) |
Cash receipts/(payments) | 10 |
Asset write downs/disposals | (2,119) |
Liability, Ending Balance | 0 |
Other Costs | 2016 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 0 |
Current year charges | 790 |
Cash receipts/(payments) | (472) |
Foreign currency translation | (4) |
Liability, Ending Balance | 314 |
Other Costs | 2015 Actions | |
Restructuring Reserve [Roll Forward] | |
Liability, Beginning Balance | 0 |
Current year charges | 1,242 |
Adjustments | (163) |
Cash receipts/(payments) | (1,072) |
Foreign currency translation | 5 |
Liability, Ending Balance | $ 12 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | $ 1,532,873 | |||
Amounts reclassified from accumulated other comprehensive loss | 22 | ||||
Net current-period other comprehensive income/ (loss) | $ (11,661) | $ 5,064 | 27,015 | $ (52,854) | |
Ending Balance | 1,575,716 | 1,575,716 | |||
Gains and Losses on Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (5,152) | (5,962) | |||
Other comprehensive income/(loss) before reclassifications | 2,121 | (3,858) | |||
Amounts reclassified from accumulated other comprehensive loss | 2,523 | 5,339 | |||
Net current-period other comprehensive income/ (loss) | 4,622 | 1,244 | |||
Ending Balance | (530) | (4,718) | (530) | (4,718) | |
Net Income | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (702,533) | (608,851) | |||
Other comprehensive income/(loss) before reclassifications | 12,370 | (71,338) | |||
Amounts reclassified from accumulated other comprehensive loss | 14,667 | 18,721 | |||
Net current-period other comprehensive income/ (loss) | 27,015 | (52,854) | |||
Ending Balance | (675,518) | (661,705) | (675,518) | (661,705) | |
Defined Benefit Pension Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (444,244) | (475,286) | |||
Other comprehensive income/(loss) before reclassifications | (3,190) | (8,234) | |||
Amounts reclassified from accumulated other comprehensive loss | 12,144 | 13,382 | |||
Net current-period other comprehensive income/ (loss) | 8,954 | 5,148 | |||
Ending Balance | (435,290) | (470,138) | (435,290) | (470,138) | |
Foreign Currency Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (253,137) | (127,603) | |||
Other comprehensive income/(loss) before reclassifications | 13,439 | (59,246) | |||
Net current-period other comprehensive income/ (loss) | 13,439 | (59,246) | |||
Ending Balance | $ (239,698) | $ (186,849) | (239,698) | (186,849) | |
Fixed Assets | Gains and Losses on Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss | (22) | (237) | |||
Fixed Assets | Net Income | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss | $ (22) | $ (237) | |||
[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 Comprehensi38
Accumulated Other Comprehensive Loss - Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | $ 1,205,680 | $ 1,248,590 | $ 2,431,956 | $ 2,454,642 |
Cost of sales | (963,667) | (1,008,274) | (1,944,690) | (1,993,936) |
Selling, general and administrative | (126,611) | (130,887) | (260,804) | (227,552) |
Income before income taxes | 78,580 | 85,383 | 166,625 | 196,246 |
Tax benefit | (24,790) | (24,023) | (53,984) | (50,244) |
Income before equity in earnings of affiliates | 53,790 | 61,360 | 112,641 | 146,002 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before equity in earnings of affiliates | (7,205) | (9,937) | (14,667) | (18,721) |
Reclassification out of Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | (1,514) | (4,629) | (4,220) | (8,739) |
Tax benefit | 505 | 1,801 | 1,697 | 3,400 |
Income before equity in earnings of affiliates | (1,009) | (2,828) | (2,523) | (5,339) |
Reclassification out of Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges | Foreign Exchange Contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | (607) | (4,201) | (2,847) | (8,289) |
Cost of sales | 387 | 2,106 | 1,432 | 4,507 |
Reclassification out of Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges | Commodity Contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | (1,294) | (2,534) | (2,805) | (4,957) |
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Pension Items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | (7,368) | (8,427) | (14,511) | (15,872) |
Selling, general and administrative | (2,456) | (2,809) | (4,837) | (5,290) |
Income before income taxes | (9,824) | (11,236) | (19,348) | (21,162) |
Tax benefit | 3,628 | 4,127 | 7,204 | 7,780 |
Income before equity in earnings of affiliates | $ (6,196) | $ (7,109) | $ (12,144) | $ (13,382) |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Unfavorable position amounts included in accumulated other comprehensive loss related to cash flow hedges | $ 708 | $ 708 | $ 8,036 | ||
Accumulated other comprehensive income loss cumulative changes in net gain loss from cash flow hedge effect after tax | 530 | 530 | 5,152 | ||
Cumulative tax benefit on Cash Flow Hedges included in Accumulated Other Comprehensive Loss | 178 | 178 | 2,884 | ||
Increase (decrease) in tax benefit on Cash Flow Hedges | (1,324) | (2,706) | |||
Cumulative tax benefit on Defined Benefit Pensions | 242,802 | 242,802 | $ 247,788 | ||
Increase (decrease) in tax benefit on Defined Benefit Pensions | (1,423) | (4,986) | |||
Foreign currency translation adjustments | 726 | $ 470 | $ 2,138 | $ (161) | |
Non-Controlling Interests | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Foreign currency translation adjustments | $ 726 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets - Changes in Goodwill by Segment (Details) $ in Thousands | 6 Months Ended | |
Jul. 03, 2016USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,140,461 | [1] |
Acquisitions | 417 | |
Foreign currency translation | 10,749 | |
Other | (71) | |
Goodwill, ending balance | 1,151,556 | |
Consumer Packaging | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 487,342 | |
Acquisitions | 0 | |
Foreign currency translation | 8,337 | |
Other | (71) | |
Goodwill, ending balance | 495,608 | |
Display and Packaging | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 204,629 | |
Acquisitions | 0 | |
Foreign currency translation | 0 | |
Other | 0 | |
Goodwill, ending balance | 204,629 | |
Paper and Industrial Converted Products | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 227,325 | |
Acquisitions | 417 | |
Foreign currency translation | 2,412 | |
Other | 0 | |
Goodwill, ending balance | 230,154 | |
Protective Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 221,165 | |
Acquisitions | 0 | |
Foreign currency translation | 0 | |
Other | 0 | |
Goodwill, ending balance | $ 221,165 | |
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 03, 2016 | Dec. 31, 2015 | |
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | $ 434,650 | $ 433,158 | |
Accumulated Amortization | (204,948) | (188,063) | |
Other Intangible Assets, net | 229,702 | 245,095 | [1] |
Patents | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 12,858 | 12,716 | |
Customer Lists | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 383,247 | 381,938 | |
Trade Names | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 19,260 | 19,246 | |
Proprietary Technology | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 17,744 | 17,738 | |
Land Use Rights | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | 298 | 297 | |
Other | |||
Other Intangible Assets, Gross: | |||
Other Intangible Assets, gross | $ 1,243 | $ 1,223 | |
[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 Intangible42
Goodwill and Other Intangible Assets - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jul. 03, 2016USD ($)customer | Jun. 28, 2015USD ($) | Jul. 03, 2016USD ($)customer | Jun. 28, 2015USD ($) | Jun. 24, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Goodwill [Line Items] | |||||||
Goodwill | $ 1,151,556 | $ 1,151,556 | $ 1,140,461 | [1] | |||
Number of customers | customer | 1 | 1 | |||||
Aggregate amortization expenses | $ 8,231 | $ 8,174 | $ 16,567 | $ 16,324 | |||
Amortization expense on other intangible assets in 2016 | 32,400 | 32,400 | |||||
Amortization expense on other intangible assets in 2017 | 31,600 | 31,600 | |||||
Amortization expense on other intangible assets in 2018 | 30,800 | 30,800 | |||||
Amortization expense on other intangible assets in 2019 | 29,400 | 29,400 | |||||
Amortization expense on other intangible assets in 2020 | 27,700 | 27,700 | |||||
Tubes and Cores/Paper - Brazil Reporting Unit | |||||||
Goodwill [Line Items] | |||||||
Goodwill | 91,400 | 91,400 | |||||
Consumer Packaging Segment | |||||||
Goodwill [Line Items] | |||||||
Goodwill | 495,608 | 495,608 | 487,342 | ||||
Display and Packaging | |||||||
Goodwill [Line Items] | |||||||
Goodwill | 204,629 | 204,629 | $ 204,629 | ||||
Display and Packaging | Display and Packaging Reporting Unit | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 204,600 | $ 204,600 | |||||
Minimum | |||||||
Goodwill [Line Items] | |||||||
Useful lives of other intangible assets | 3 years | ||||||
Maximum | |||||||
Goodwill [Line Items] | |||||||
Useful lives of other intangible assets | 40 years | ||||||
Australian Tube and Core Business | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 417 | ||||||
Useful lives of other intangible assets | 10 years | ||||||
Intangibles acquired | $ 297 | ||||||
Puerto Rico | Retail Security Packaging Business | |||||||
Goodwill [Line Items] | |||||||
Impairment of intangible assets | $ 1,947 | ||||||
[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 Der43
Financial Instruments and Derivatives - Carrying Amount and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jul. 03, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Long-term debt, net of current portion, Carrying Amount | $ 1,029,943 | $ 1,015,270 | [1] |
Long-term debt, net of current portion, Fair Value | $ 1,154,528 | $ 1,081,732 | |
[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 Der44
Financial Instruments and Derivatives - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Jul. 03, 2016USD ($)MMBTUTt | Dec. 31, 2015USD ($) | |
Derivative [Line Items] | ||
Fair value of commodity cash flow hedges | $ 960 | $ (3,611) |
Commodity gain (loss) expected to be reclassified to the income statement during the next 12 months | 207 | |
Fair value of foreign currency cash flow hedges | (1,421) | (4,612) |
Amounts reclassified from accumulated other comprehensive loss | 22 | |
Foreign currency gain (loss) expected to be reclassified to the income statement during the next 12 months | (1,394) | |
Total fair value of other derivatives not designated as hedging instruments | $ (890) | $ (2,180) |
Natural Gas Swaps | ||
Derivative [Line Items] | ||
Approximate amount of commodity covered by swap contracts outstanding | MMBTU | 8.3 | |
Anticipated usage percentage covered by a swap contract for the current fiscal year | 75.00% | |
Anticipated usage percentage covered by a swap contract for the second succeeding fiscal year | 75.00% | |
Aluminum Swaps | ||
Derivative [Line Items] | ||
Anticipated usage percentage covered by a swap contract for the current fiscal year | 54.00% | |
Anticipated usage percentage covered by a swap contract for the second succeeding fiscal year | 1.00% | |
Approximate amount of commodity covered by swap contracts outstanding | t | 2,228 | |
Containers | ||
Derivative [Line Items] | ||
Approximate amount of commodity covered by swap contracts outstanding | T | 1,320 |
Financial Instruments and Der45
Financial Instruments and Derivatives - Net Positions of Foreign Contracts (Details) - Jul. 03, 2016 € 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 | AUD | RUB | PLN | TRY | COP | CAD | EUR (€) | GBP (£) | MXN | NZD |
Purchase | Cash Flow Hedging | ||||||||||
Derivative [Line Items] | ||||||||||
Net Purchase / (Sales) position of foreign currency cash flow hedges | COP (3,413,426) | CAD (41,341) | MXN (273,554) | |||||||
Cash Flow Hedging | Sell | ||||||||||
Derivative [Line Items] | ||||||||||
Net Purchase / (Sales) position of foreign currency cash flow hedges | AUD (1,018) | PLN (1,501) | € (5,009) | NZD (313) | ||||||
Cash Flow Hedging | Purchase | ||||||||||
Derivative [Line Items] | ||||||||||
Net Purchase / (Sales) position of foreign currency cash flow hedges | RUB (8,846) | TRY (674) | £ (4,615) |
Financial Instruments and Der46
Financial Instruments and Derivatives - Net Positions of Other Derivatives Contract (Details) - Jul. 03, 2016 - Derivatives Not Designated as Hedging Instruments € in Thousands, £ in Thousands, MXN in Thousands, COP in Thousands, CAD in Thousands | COP | CAD | EUR (€) | GBP (£) | MXN |
Sell | |||||
Derivative [Line Items] | |||||
Net Purchase / (Sales) position of other derivatives | € (14,493) | ||||
Purchase | |||||
Derivative [Line Items] | |||||
Net Purchase / (Sales) position of other derivatives | COP (32,120,961) | CAD (22,163) | £ (20,500) | MXN (236,789) |
Financial Instruments and Der47
Financial Instruments and Derivatives - Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Jul. 03, 2016 | Dec. 31, 2015 |
Derivatives Designated as Hedging Instruments | Commodity Contracts | Prepaid Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid expenses, accrued expenses, and other liabilities | $ (781) | $ (8) |
Derivatives Designated as Hedging Instruments | Commodity Contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid expenses, accrued expenses, and other liabilities | (757) | 0 |
Derivatives Designated as Hedging Instruments | Commodity Contracts | Accrued Expenses and Other | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid expenses, accrued expenses, and other liabilities | (576) | (3,425) |
Derivatives Designated as Hedging Instruments | Commodity Contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid expenses, accrued expenses, and other liabilities | (2) | (194) |
Derivatives Designated as Hedging Instruments | Foreign Exchange Contracts | Prepaid Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid expenses | 887 | 156 |
Derivatives Designated as Hedging Instruments | Foreign Exchange Contracts | Accrued Expenses and Other | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid expenses, accrued expenses, and other liabilities | (2,308) | (4,768) |
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contracts | Prepaid Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid expenses | 32 | 50 |
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contracts | Accrued Expenses and Other | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid expenses, accrued expenses, and other liabilities | $ (922) | $ (2,230) |
Financial Instruments and Der48
Financial Instruments and Derivatives - Effect of Derivative Instruments on Financial Performance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | $ (797) | $ 530 | $ 1,570 | $ (3,791) |
Foreign Exchange Contracts | Net Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) | (607) | (4,201) | (2,847) | (8,289) |
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | 0 |
Foreign Exchange Contracts | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) | 387 | 2,106 | 1,432 | 4,507 |
Commodity Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | 3,249 | (1,242) | 1,516 | (3,352) |
Commodity Contracts | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) | (1,294) | (2,534) | (2,805) | (4,957) |
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | (108) | 70 | 2 | 110 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized | 0 | 0 | 0 | 0 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Selling, General and Administrative | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized | $ 1,352 | $ 1,293 | $ 1,116 | $ 761 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jul. 03, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 477 | $ 460 |
Derivatives Designated as Hedging Instruments | Commodity Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 960 | (3,611) |
Derivatives Designated as Hedging Instruments | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (1,421) | (4,612) |
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (890) | (2,180) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 477 | 460 |
Level 1 | Derivatives Designated as Hedging Instruments | Commodity Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 1 | Derivatives Designated as Hedging Instruments | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 1 | Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Level 2 | Derivatives Designated as Hedging Instruments | Commodity Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 960 | (3,611) |
Level 2 | Derivatives Designated as Hedging Instruments | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (1,421) | (4,612) |
Level 2 | Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (890) | (2,180) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Level 3 | Derivatives Designated as Hedging Instruments | Commodity Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 3 | Derivatives Designated as Hedging Instruments | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 3 | Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ 0 | $ 0 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Retirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 4,799 | $ 6,088 | $ 9,822 | $ 11,341 |
Interest cost | 14,984 | 17,829 | 30,310 | 34,762 |
Expected return on plan assets | (21,388) | (23,527) | (43,432) | (46,253) |
Amortization of net transition obligation | 0 | 41 | 0 | 81 |
Amortization of prior service cost (credit) | 188 | 187 | 381 | 367 |
Amortization of net actuarial loss | 9,960 | 11,105 | 19,556 | 20,833 |
Net periodic benefit cost (income) | 8,543 | 11,723 | 16,637 | 21,131 |
Retiree Health and Life Insurance Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 71 | 206 | 156 | 384 |
Interest cost | 114 | 225 | 244 | 447 |
Expected return on plan assets | (394) | (414) | (798) | (807) |
Amortization of prior service cost (credit) | (124) | (26) | (252) | (51) |
Amortization of net actuarial loss | (200) | (63) | (337) | (68) |
Net periodic benefit cost (income) | $ (533) | $ (72) | $ (987) | $ (95) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to defined benefit retirement and retiree health and life insurance plans | $ 35,647 | $ 25,118 | ||
Retiree Health And Life Insurance Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to defined benefit retirement and retiree health and life insurance plans | 22,295 | 12,253 | ||
Projected contributions to retirement plan | 10,300 | |||
Sonoco Investment And Retirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer matching contribution, percent of employees' gross pay | 4.00% | |||
Employer matching contribution, percent of employees' gross pay in excess of social security | 4.00% | |||
Contribution to defined benefit retirement and retiree health and life insurance plans | 13,352 | 12,865 | ||
Projected contributions to retirement plan | 0 | |||
Recognized expense related to the plan | $ 3,577 | $ 3,302 | $ 6,595 | $ 6,929 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 31.50% | 28.10% | 32.40% | 25.60% |
Reserves for uncertain tax benefits | $ 2,400 | $ 2,400 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 6 Months Ended |
Jul. 03, 2016segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Reporting - Segment Fin
Segment Reporting - Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,205,680 | $ 1,248,590 | $ 2,431,956 | $ 2,454,642 |
Income before interest and income taxes | 92,124 | 98,984 | 193,956 | 223,068 |
Restructuring/Asset impairment charges | (23,278) | (10,445) | (32,506) | (10,086) |
Operating Segments | Consumer Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 511,007 | 531,114 | 1,038,345 | 1,050,991 |
Income before interest and income taxes | 59,509 | 57,530 | 122,374 | 111,558 |
Operating Segments | Display and Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 130,874 | 141,604 | 275,141 | 287,389 |
Income before interest and income taxes | 5,030 | 1,035 | 8,311 | 1,873 |
Operating Segments | Paper And Industrial Converted Products | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 433,342 | 448,876 | 856,416 | 871,187 |
Income before interest and income taxes | 37,480 | 38,963 | 70,779 | 66,760 |
Operating Segments | Protective Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 130,457 | 126,996 | 262,054 | 245,075 |
Income before interest and income taxes | 14,220 | 13,604 | 26,246 | 23,289 |
Intersegment Sales | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 26,044 | 27,267 | 54,840 | 57,503 |
Intersegment Sales | Consumer Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,596 | 1,321 | 2,928 | 3,001 |
Intersegment Sales | Display and Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 626 | 451 | 1,123 | 848 |
Intersegment Sales | Paper And Industrial Converted Products | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 23,536 | 25,038 | 49,917 | 52,589 |
Intersegment Sales | Protective Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 286 | 457 | 872 | 1,065 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring/Asset impairment charges | (23,278) | (10,445) | (32,506) | (10,086) |
Other, net | $ (837) | $ (1,703) | $ (1,248) | 29,674 |
Operating Units 2 - 5 | ||||
Segment Reporting Information [Line Items] | ||||
Decrease due to revision of estimates | $ 32,543 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Apr. 07, 2015USD ($)defendant | Mar. 30, 2014defendant | Jul. 03, 2016USD ($) | Jun. 28, 2015USD ($) | Dec. 31, 2015USD ($) | Nov. 08, 2011USD ($) |
Site Contingency [Line Items] | ||||||
Environmental accrual | $ 24,542 | $ 25,195 | ||||
Environmental remediation spent | 580 | $ 720 | ||||
Operating Units 2 - 5 | ||||||
Site Contingency [Line Items] | ||||||
Increase (decrease) due to revision of estimates | $ (32,543) | |||||
U.S. Mills | ||||||
Site Contingency [Line Items] | ||||||
Environmental accrual | 3,896 | |||||
Environmental contingencies future related cost, high estimate | 127,500 | |||||
U.S. Mills | Lower Fox River | ||||||
Site Contingency [Line Items] | ||||||
Number of defendants | defendant | 5 | |||||
Settlement amount | $ 14,700 | |||||
U.S. Mills | Operating Units 2 - 5 | ||||||
Site Contingency [Line Items] | ||||||
Environmental accrual | 3,316 | |||||
Environmental remediation spent | 580 | |||||
Tegrant Holding Corporation | ||||||
Site Contingency [Line Items] | ||||||
Environmental accrual | 18,468 | 18,521 | $ 18,850 | |||
Increase (decrease) due to revision of estimates | $ 392 | |||||
Payment towards remediation of sites | 774 | |||||
Appvion, Inc. | U.S. Mills | Lower Fox River | ||||||
Site Contingency [Line Items] | ||||||
Number of defendants | defendant | 8 | |||||
Total estimated possible claim | $ 200 |