Cover
Cover - shares | 9 Months Ended | |
Oct. 03, 2021 | Oct. 22, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 3, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-11261 | |
Entity Registrant Name | SONOCO PRODUCTS COMPANY | |
Entity Incorporation, State or Country Code | SC | |
Entity Tax Identification Number | 57-0248420 | |
Entity Address, Address Line One | 1 N. Second St. | |
Entity Address, City or Town | Hartsville | |
Entity Address, State or Province | SC | |
Entity Address, Postal Zip Code | 29550 | |
City Area Code | 843 | |
Local Phone Number | 383-7000 | |
Title of 12(b) Security | No par value common stock | |
Trading Symbol | SON | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 98,326,308 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000091767 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 | [1] |
Current Assets | |||
Cash and cash equivalents | $ 160,012 | $ 564,848 | |
Trade accounts receivable, net of allowances | 755,638 | 658,808 | |
Other receivables | 94,884 | 103,636 | |
Inventories, net: | |||
Finished and in process | 186,872 | 167,018 | |
Materials and supplies | 343,239 | 283,673 | |
Prepaid expenses | 60,010 | 52,564 | |
Total Current Assets | 1,600,655 | 1,830,547 | |
Property, Plant and Equipment, Net | 1,232,074 | 1,244,110 | |
Goodwill | 1,323,723 | 1,389,255 | |
Other Intangible Assets, Net | 281,533 | 321,934 | |
Deferred Income Taxes | 38,398 | 42,479 | |
Right of Use Asset-Operating Leases | 269,855 | 296,020 | |
Other Assets | 178,912 | 152,914 | |
Total Assets | 4,925,150 | 5,277,259 | |
Current Liabilities | |||
Payable to suppliers | 686,113 | 536,939 | |
Accrued expenses and other | 366,126 | 511,489 | |
Notes payable and current portion of long-term debt | 275,799 | 455,784 | |
Accrued taxes | 21,203 | 7,415 | |
Total Current Liabilities | 1,349,241 | 1,511,627 | |
Long-term Debt, Net of Current Portion | 1,192,707 | 1,244,440 | |
Noncurrent Operating Lease Liabilities | 236,590 | 262,048 | |
Pension and Other Postretirement Benefits | 164,584 | 171,518 | |
Deferred Income Taxes | 67,627 | 86,018 | |
Other Liabilities | 53,669 | 91,080 | |
Common stock, no par value | |||
Authorized 300,000 shares 98,326 and 100,447 shares issued and outstanding at October 3, 2021 and December 31, 2020, respectively | 7,175 | 7,175 | |
Capital in excess of stated value | 172,655 | 314,056 | |
Accumulated other comprehensive loss | (378,910) | (756,842) | |
Retained earnings | 2,049,072 | 2,335,216 | |
Total Sonoco Shareholders’ Equity | 1,849,992 | 1,899,605 | |
Noncontrolling Interests | 10,740 | 10,923 | |
Total Equity | 1,860,732 | 1,910,528 | |
Total Liabilities and Equity | $ 4,925,150 | $ 5,277,259 | |
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - shares | Oct. 03, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 98,326,000 | 100,447,000 |
Common stock, shares outstanding (in shares) | 98,326,000 | 100,447,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,415,193 | $ 1,312,314 | $ 4,151,251 | $ 3,861,095 |
Cost of sales | 1,157,462 | 1,055,304 | 3,352,966 | 3,089,512 |
Gross profit | 257,731 | 257,010 | 798,285 | 771,583 |
Selling, general and administrative expenses | 130,580 | 126,117 | 404,617 | 371,376 |
Restructuring/Asset impairment charges | 3,488 | 24,149 | 8,889 | 59,633 |
Gain/(Loss) on divestiture of businesses | 2,849 | 0 | (2,667) | 0 |
Operating profit | 126,512 | 106,744 | 382,112 | 340,574 |
Non-operating pension costs | 525 | 7,453 | 562,818 | 22,632 |
Interest expense | 14,753 | 19,377 | 50,767 | 55,469 |
Interest income | 534 | 796 | 4,023 | 2,158 |
Loss from the early extinguishment of debt | 0 | 0 | 20,184 | 0 |
Income/(Loss) before income taxes | 111,768 | 80,710 | (247,634) | 264,631 |
Provision for/(Benefit from) income taxes | 2,564 | (649) | (91,542) | 49,337 |
Income/(Loss) before equity in earnings of affiliates | 109,204 | 81,359 | (156,092) | 215,294 |
Equity in earnings of affiliates, net of tax | 2,351 | 1,939 | 5,701 | 3,230 |
Net income/(loss) | 111,555 | 83,298 | (150,391) | 218,524 |
Net (income)/loss attributable to noncontrolling interests | (415) | 151 | (243) | 581 |
Net income/(loss) attributable to Sonoco | $ 111,140 | $ 83,449 | $ (150,634) | $ 219,105 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 98,955 | 100,974 | 100,039 | 100,935 |
Diluted (in shares) | 99,425 | 101,245 | 100,039 | 101,155 |
Net income/(loss) attributable to Sonoco: | ||||
Basic (in usd per share) | $ 1.12 | $ 0.83 | $ (1.51) | $ 2.17 |
Diluted (in usd per share) | $ 1.12 | $ 0.82 | $ (1.51) | $ 2.17 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income/(loss) | $ 111,555 | $ 83,298 | $ (150,391) | $ 218,524 |
Other comprehensive income/(loss): | ||||
Foreign currency translation adjustments | (37,741) | 24,647 | (57,686) | (37,701) |
Changes in defined benefit plans, net of tax | 1,693 | 5,280 | 429,823 | 15,476 |
Changes in derivative financial instruments, net of tax | 930 | 2,285 | 5,370 | (440) |
Other comprehensive (loss)/income | (35,118) | 32,212 | 377,507 | (22,665) |
Comprehensive income: | 76,437 | 115,510 | 227,116 | 195,859 |
Net (income)/loss attributable to noncontrolling interests | (415) | 151 | (243) | 581 |
Other comprehensive loss attributable to noncontrolling interests | 664 | 27 | 425 | 2,254 |
Comprehensive income attributable to Sonoco | $ 76,686 | $ 115,688 | $ 227,298 | $ 198,694 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Shares | Capital in Excess of Stated Value | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | Impact of new accounting pronouncements | Impact of new accounting pronouncementsRetained Earnings | |
Beginning Balance at Dec. 31, 2019 | $ 1,815,705 | $ 7,175 | $ 310,778 | $ (816,803) | $ 2,301,532 | $ 13,023 | $ (209) | $ (209) | |
Beginning balance (in shares) at Dec. 31, 2019 | 100,198 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 80,236 | 80,445 | (209) | ||||||
Other comprehensive income/(loss): | |||||||||
Translation gain/(loss) | (95,212) | (93,575) | (1,637) | ||||||
Defined benefit plan adjustment, net of tax | 5,780 | 5,780 | |||||||
Derivative financial instruments, net of tax | (4,555) | (4,555) | |||||||
Other comprehensive income/(loss) | (93,987) | (92,350) | (1,637) | ||||||
Dividends | (43,339) | (43,339) | |||||||
Issuance of stock awards | 376 | 376 | |||||||
Issuance of stock awards (in shares) | 196 | ||||||||
Shares repurchased | (3,938) | (3,938) | |||||||
Shares repurchased (in shares) | (65) | ||||||||
Stock-based compensation | 597 | 597 | |||||||
Ending Balance at Mar. 29, 2020 | 1,755,441 | $ 7,175 | 307,813 | (909,153) | 2,338,429 | 11,177 | |||
Ending balance (in shares) at Mar. 29, 2020 | 100,329 | ||||||||
Beginning Balance at Dec. 31, 2019 | 1,815,705 | $ 7,175 | 310,778 | (816,803) | 2,301,532 | 13,023 | $ (209) | $ (209) | |
Beginning balance (in shares) at Dec. 31, 2019 | 100,198 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 218,524 | ||||||||
Other comprehensive income/(loss): | |||||||||
Translation gain/(loss) | (37,701) | ||||||||
Defined benefit plan adjustment, net of tax | 15,476 | ||||||||
Derivative financial instruments, net of tax | (440) | ||||||||
Other comprehensive income/(loss) | (20,411) | ||||||||
Ending Balance at Sep. 27, 2020 | 1,881,333 | $ 7,175 | 310,912 | (837,214) | 2,390,272 | 10,188 | |||
Ending balance (in shares) at Sep. 27, 2020 | 100,416 | ||||||||
Beginning Balance at Mar. 29, 2020 | 1,755,441 | $ 7,175 | 307,813 | (909,153) | 2,338,429 | 11,177 | |||
Beginning balance (in shares) at Mar. 29, 2020 | 100,329 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 54,990 | 55,211 | (221) | ||||||
Other comprehensive income/(loss): | |||||||||
Translation gain/(loss) | 32,864 | 33,454 | (590) | ||||||
Defined benefit plan adjustment, net of tax | 4,416 | 4,416 | |||||||
Derivative financial instruments, net of tax | 1,830 | 1,830 | |||||||
Other comprehensive income/(loss) | 39,110 | 39,700 | (590) | ||||||
Dividends | (43,451) | (43,451) | |||||||
Issuance of stock awards | 287 | 287 | |||||||
Issuance of stock awards (in shares) | 2 | ||||||||
Shares repurchased | (12) | (12) | |||||||
Shares repurchased (in shares) | (1) | ||||||||
Stock-based compensation | 1,339 | 1,339 | |||||||
Ending Balance at Jun. 28, 2020 | 1,807,704 | $ 7,175 | 309,427 | (869,453) | 2,350,189 | 10,366 | |||
Ending balance (in shares) at Jun. 28, 2020 | 100,330 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 83,298 | 83,449 | (151) | ||||||
Other comprehensive income/(loss): | |||||||||
Translation gain/(loss) | 24,647 | 24,674 | (27) | ||||||
Defined benefit plan adjustment, net of tax | 5,280 | 5,280 | 0 | ||||||
Derivative financial instruments, net of tax | 2,285 | 2,285 | 0 | ||||||
Other comprehensive income/(loss) | 32,212 | 32,239 | (27) | ||||||
Dividends | (43,366) | (43,366) | |||||||
Issuance of stock awards | 256 | 256 | |||||||
Issuance of stock awards (in shares) | 150 | ||||||||
Shares repurchased | (3,385) | (3,385) | |||||||
Shares repurchased (in shares) | (64) | ||||||||
Stock-based compensation | 4,614 | 4,614 | |||||||
Ending Balance at Sep. 27, 2020 | 1,881,333 | $ 7,175 | 310,912 | (837,214) | 2,390,272 | 10,188 | |||
Ending balance (in shares) at Sep. 27, 2020 | 100,416 | ||||||||
Beginning Balance at Dec. 31, 2020 | $ 1,910,528 | [1] | $ 7,175 | 314,056 | (756,842) | 2,335,216 | 10,923 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 100,447 | 100,447 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | $ 72,293 | 72,297 | (4) | ||||||
Other comprehensive income/(loss): | |||||||||
Translation gain/(loss) | (32,541) | (32,021) | (520) | ||||||
Defined benefit plan adjustment, net of tax | 5,385 | 5,385 | |||||||
Derivative financial instruments, net of tax | 958 | 958 | |||||||
Other comprehensive income/(loss) | (26,198) | (25,678) | (520) | ||||||
Dividends | (45,510) | (45,510) | |||||||
Issuance of stock awards | 364 | 364 | |||||||
Issuance of stock awards (in shares) | 245 | ||||||||
Shares repurchased | (5,051) | (5,051) | |||||||
Shares repurchased (in shares) | (85) | ||||||||
Stock-based compensation | 6,372 | 6,372 | |||||||
Ending Balance at Apr. 04, 2021 | 1,912,798 | $ 7,175 | 315,741 | (782,520) | 2,362,003 | 10,399 | |||
Ending balance (in shares) at Apr. 04, 2021 | 100,607 | ||||||||
Beginning Balance at Dec. 31, 2020 | $ 1,910,528 | [1] | $ 7,175 | 314,056 | (756,842) | 2,335,216 | 10,923 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 100,447 | 100,447 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | $ (150,391) | ||||||||
Other comprehensive income/(loss): | |||||||||
Translation gain/(loss) | (57,686) | ||||||||
Defined benefit plan adjustment, net of tax | 429,823 | ||||||||
Derivative financial instruments, net of tax | 5,370 | ||||||||
Other comprehensive income/(loss) | 377,932 | ||||||||
Ending Balance at Oct. 03, 2021 | $ 1,860,732 | $ 7,175 | 172,655 | (378,910) | 2,049,072 | 10,740 | |||
Ending balance (in shares) at Oct. 03, 2021 | 98,326 | 98,326 | |||||||
Beginning Balance at Apr. 04, 2021 | $ 1,912,798 | $ 7,175 | 315,741 | (782,520) | 2,362,003 | 10,399 | |||
Beginning balance (in shares) at Apr. 04, 2021 | 100,607 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | (334,239) | (334,070) | (169) | ||||||
Other comprehensive income/(loss): | |||||||||
Translation gain/(loss) | 12,596 | 11,837 | 759 | ||||||
Defined benefit plan adjustment, net of tax | 422,745 | 422,745 | |||||||
Derivative financial instruments, net of tax | 3,482 | 3,482 | |||||||
Other comprehensive income/(loss) | 438,823 | 438,064 | 759 | ||||||
Dividends | (45,503) | (45,503) | |||||||
Issuance of stock awards | 246 | 246 | |||||||
Issuance of stock awards (in shares) | 41 | ||||||||
Shares repurchased | (154,519) | (154,519) | |||||||
Shares repurchased (in shares) | (1,819) | ||||||||
Stock-based compensation | 4,827 | 4,827 | |||||||
Ending Balance at Jul. 04, 2021 | 1,822,433 | $ 7,175 | 166,295 | (344,456) | 1,982,430 | 10,989 | |||
Ending balance (in shares) at Jul. 04, 2021 | 98,829 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 111,555 | 111,140 | 415 | ||||||
Other comprehensive income/(loss): | |||||||||
Translation gain/(loss) | (37,741) | (37,077) | (664) | ||||||
Defined benefit plan adjustment, net of tax | 1,693 | 1,693 | 0 | ||||||
Derivative financial instruments, net of tax | 930 | 930 | 0 | ||||||
Other comprehensive income/(loss) | (35,118) | (34,454) | (664) | ||||||
Dividends | (44,498) | (44,498) | |||||||
Issuance of stock awards | 251 | 251 | |||||||
Issuance of stock awards (in shares) | 3 | ||||||||
Shares repurchased | (83) | (83) | |||||||
Shares repurchased (in shares) | (506) | ||||||||
Stock-based compensation | 6,192 | 6,192 | |||||||
Ending Balance at Oct. 03, 2021 | $ 1,860,732 | $ 7,175 | $ 172,655 | $ (378,910) | $ 2,049,072 | $ 10,740 | |||
Ending balance (in shares) at Oct. 03, 2021 | 98,326 | 98,326 | |||||||
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2021 | Sep. 27, 2020 | |
Cash Flows from Operating Activities: | ||
Net income/(loss) | $ (150,391) | $ 218,524 |
Adjustments to reconcile net (loss)/income to net cash provided by operating activities: | ||
Asset impairment | 3,490 | 25,364 |
Depreciation, depletion and amortization | 181,408 | 186,602 |
Loss from the early extinguishment of debt | 20,184 | 0 |
Share-based compensation expense | 17,392 | 6,551 |
Equity in earnings of affiliates | (5,701) | (3,230) |
Cash dividends from affiliated companies | 5,182 | 4,367 |
Net gain on disposition of assets | (2,376) | (3,298) |
Net loss on divestiture of businesses | 2,667 | 0 |
Pension and postretirement plan expense | 583,340 | 43,146 |
Pension and postretirement plan contributions | (165,280) | (34,795) |
Net (decrease)/increase in deferred taxes | (164,581) | 10,013 |
Change in assets and liabilities, net of effects from acquisitions and foreign currency adjustments: | ||
Trade accounts receivable | (142,699) | (42,102) |
Inventories | (95,066) | 10,621 |
Payable to suppliers | 163,193 | 15,708 |
Prepaid expenses | (17,756) | (1,857) |
Accrued expenses | 10,354 | 40,854 |
Income taxes payable and other income tax items | (8,531) | (17,466) |
Other assets and liabilities | (14,751) | 30,499 |
Net cash provided by operating activities | 220,078 | 489,501 |
Cash Flows from Investing Activities: | ||
Purchases of property, plant and equipment | (156,592) | (116,667) |
Cost of acquisitions, net of cash acquired | (3,155) | (49,262) |
Proceeds from the sale of businesses, net | 91,569 | 0 |
Proceeds from the sale of assets | 10,536 | 8,240 |
Other net investing proceeds | 6,776 | 571 |
Net cash used in investing activities | (50,866) | (157,118) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of debt | 138,382 | 1,107,127 |
Principal repayment of debt | (582,838) | (428,966) |
Net change in commercial paper | 202,000 | (250,000) |
Net (decrease)/increase in outstanding checks | (10,736) | 8,544 |
Proceeds from foreign exchange forward contracts and interest rate swaps | 4,387 | 14,480 |
Payment of contingent consideration | 0 | (3,000) |
Cash dividends | (134,648) | (129,446) |
Excess cash costs of early extinguishment of debt | (20,111) | 0 |
Payments for share repurchases | (159,654) | (7,335) |
Net cash (used)/provided by financing activities | (563,218) | 311,404 |
Effects of Exchange Rate Changes on Cash | (10,830) | (6,391) |
Net (Decrease)/Increase in Cash and Cash Equivalents | (404,836) | 637,396 |
Cash and cash equivalents at beginning of period | 564,848 | 145,283 |
Cash and cash equivalents at end of period | $ 160,012 | $ 782,679 |
Basis of Interim Presentation
Basis of Interim Presentation | 9 Months Ended |
Oct. 03, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Interim Presentation | Basis of Interim Presentation In the opinion of the management of Sonoco Products Company (the “Company” or “Sonoco”), the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments, unless otherwise stated) necessary to state fairly the consolidated financial position, results of operations and cash flows for the interim periods reported herein. Operating results for the nine months ended October 3, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. With respect to the unaudited condensed consolidated financial information of the Company for the three- and nine-month periods ended October 3, 2021 and September 27, 2020 included in this Form 10-Q, PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report dated November 2, 2021 appearing herein, states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP is not subject to the liability provisions of Section 11 of the Securities Act of 1933 for their report on the unaudited financial information because that report is not a “report” or a “part” of a registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the Act. As previously disclosed, the Company changed its operating and reporting structure in January 2021 and, as a result, realigned certain of its reportable segments effective January 1, 2021. The revised structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as "All Other." Additional information regarding segment realignment is provided in Note 15 to these Condensed Consolidated Financial Statements. All segment results for prior periods have been recast to conform to the new presentation. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Oct. 03, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements During the nine-month period ended October 3, 2021, there have been no newly issued nor newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at October 3, 2021, there are no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Oct. 03, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions On August 3, 2021, the Company completed the acquisition of Allied Packaging Pty Ltd, a privately owned manufacturer of paper packaging and related manufacturing equipment, consisting of a single manufacturing facility in Sydney, Australia, for total cash consideration of $802 . Allied Packaging 's financial results from the date acquired are included in the Company's Industrial Paper Packaging segment. On March 8, 2021, the Company completed the acquisition of TuboTec, a small tube and core operation in Brazil, for total cash consideration of $841. TuboTec's financial results from the date acquired are included in the Company's Industrial Paper Packaging segment. During the nine months ended October 3, 2021, the Company reached a final working capital settlement related to the August 3, 2020 acquisition of Can Packaging, a designer and manufacturer of sustainable paper packaging and related manufacturing equipment, based in Habsheim, France. Under the settlement, the Company made an additional cash payment of $1,512 and recorded a corresponding increase in goodwill. Goodwill for Can Packaging, none of which is expected to be deductible for income tax purposes, consists of increased access to certain markets. Can Packaging's financial results from the date acquired are included in the Company's Consumer Packaging segment. The valuations of the assets acquired and liabilities assumed in the 2020 acquisitions of Can Packaging and a small tube and core operation in Jacksonville, Florida, were finalized in the first quarter of 2021. No additional measurement period adjustments were subsequently recorded. The Company has accounted for its acquisitions as business combinations under the acquisition method of accounting, in accordance with the business combinations subtopic of the Accounting Standards Codification and has included the results of operations of the acquired businesses in the Company's Condensed Consolidated Statements of Income from their respective dates of acquisition. Divestitures As previously disclosed, the Company completed the sale of its U.S. display and packaging business, part of the "All Other" group of businesses, to Hood Container Corporation on April 4, 2021 for $80,000 in cash. This business provided design, manufacturing and fulfillment of point-of-purchase displays, as well as contract packaging services, for consumer product customers and had approximately 450 employees. Its operations included eight manufacturing and fulfillment facilities and four sales and design centers. The selling price was adjusted at closing for certain transaction expenses and for anticipated differences between targeted levels of working capital and the projected levels at the time of closing. Net cash proceeds of $79,704 were received on April 5, 2021 and the Company recognized a loss on the divestiture of this business of $5,516, before tax, in the first quarter of 2021. During the quarter ended October 3, 2021, the Company finalized the working capital settlement related to this sale. The settlement resulted in additional cash proceeds of $1,971 and the buyer's assumption of certain liabilities totaling $786. As a result, the Company recognized a reduction in the previously reported loss on the sale of this business of $2,757, before tax, in the third quarter of 2021, bringing the total loss on the sale of business to $2,759, before tax. On September 30, 2021, the Company completed the sale of its plastics foods thermoforming business in Wilson, North Carolina ("Wilson Thermoforming") to Placon for net cash proceeds of $3,528, resulting in the recognition of a pre-tax gain on the sale of $92. Assets and liabilities disposed of in the sales of U.S. Display and Packaging and Wilson Thermoforming included the following: U.S. Display and Packaging Wilson Thermoforming Trade accounts receivable $ 26,342 $ — Inventories 8,434 1,805 Property, plant and equipment, net 9,551 550 Right of use asset - operating leases 11,627 147 Goodwill 53,039 1,058 Trade accounts payable (10,735) — Accrued expenses (2,197) (54) Operating lease liabilities (12,343) (70) Other net tangible assets 716 — Net asset disposal $ 84,434 $ 3,436 Net Proceeds 81,675 3,528 Loss/(Gain) on sale of business $ 2,759 $ (92) As previously disclosed, the Company completed the divestiture of its European contract packaging business, Sonoco Poland Packaging Services Sp. z.o.o., on November 30, 2020. The selling price of $120,000 was adjusted at closing for certain indebtedness assumed by the buyer and for anticipated differences between targeted levels of working capital and the projected levels at the time of closing. The Company received net cash proceeds at closing of $105,913, with the buyer funding an escrow account with an additional $4,600. In the second quarter of 2021, the Company received $6,366 in additional proceeds from the sale, which included the release of $4,000 from escrow plus a post-closing adjustment of $2,366 for the working capital settlement. The remaining $600 in escrow is expected to be released in the second quarter of 2022, pending any indemnity claims. The receipt of the additional cash proceeds is reflected in "Proceeds from the sale of businesses, net" in the Condensed Consolidated Statement of Cash Flows. The decision to sell its global display and packaging businesses was part of the Company's efforts to simplify its operating structure to focus on growing its core Consumer and Industrial packaging businesses around the world. These sales are not expected to notably affect consolidated operating margin percentages, nor do they represent a strategic shift for the Company that will have a major effect on the entity’s operations and financial results. Consequently, the sales did not meet the criteria for reporting as discontinued operations. The net proceeds from the sales were used for general corporate purposes. The Company continually assesses its operational footprint as well as its overall portfolio of businesses and may consider the divestiture of plants and/or business units it considers to be suboptimal or nonstrategic. Acquisition and Divestiture-Related Transaction Costs |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Oct. 03, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Earnings/(Loss) per Share The following table sets forth the computation of basic and diluted earnings/(loss) per share: Three Months Ended Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Numerator: Net income/(loss) attributable to Sonoco $ 111,140 $ 83,449 $ (150,634) $ 219,105 Denominator: Weighted average common shares outstanding: Basic 98,955 100,974 100,039 100,935 Dilutive effect of stock-based compensation 470 271 — 220 Diluted 99,425 101,245 100,039 101,155 Net income/(loss) attributable to Sonoco per common share: Basic $ 1.12 $ 0.83 $ (1.51) $ 2.17 Diluted $ 1.12 $ 0.82 $ (1.51) $ 2.17 Cash dividends $ 0.45 $ 0.43 $ 1.35 $ 1.29 No adjustments were made to "Net income/(loss) attributable to Sonoco" in the computations of net income/(loss) attributable to Sonoco per common share. Anti-dilutive Securities Potentially dilutive securities are calculated in accordance with the treasury stock method, which assumes the proceeds from the exercise of all dilutive stock appreciation rights (SARs) are used to repurchase the Company’s common stock. Certain SARs are not dilutive because either the exercise price is greater than the average market price of the stock during the reporting period or assumed repurchases from proceeds from the exercise of the SARs were antidilutive. These SARs may become dilutive in the future if the market price of the Company's common stock appreciates. The average numbers of SARs that were anti-dilutive and, therefore, not included in the computation of diluted earnings per share during the three- and nine-month periods ended October 3, 2021 and September 27, 2020 were as follows: Three Months Ended Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Anti-dilutive stock appreciation rights — 752 142 844 Diluted earnings per share is computed by dividing net income by the weighted average shares outstanding, assuming all dilutive potential common shares were issued, unless doing so is anti-dilutive. Such securities have an anti-dilutive impact in those periods in which a loss is reported. Diluted net loss per share of common stock for the nine-month period ended October 3, 2021 is the same as basic net loss per share because otherwise dilutive securities are excluded from the computation of diluted net loss per share. The following table sets forth the potentially dilutive securities excluded from the computation of diluted net loss per share during the nine-month period ended October 3, 2021: Nine Months Ended October 3, 2021 Dilutive securities excluded due to reported loss 469 Stock Repurchases On April 20, 2021, the Company's Board of Directors (the "Board") authorized the repurchase of the Company's common stock in an aggregate amount of up to $350,000. Following the transactions described below, a total of $196,385 remains available to be used for share repurchases under this authorization as of October 3, 2021. On May 10, 2021, the Company entered into an accelerated share repurchase agreement ("ASR Agreement") with a financial institution to repurchase outstanding shares of the Company's common stock. In exchange for an upfront payment of $150,000, which was funded with available cash on hand, the financial institution delivered 1,751 initial shares to the Company, representing 80% of the expected number of shares to be repurchased during the repurchase period based upon the closing stock price on May 10, 2021 of $68.50 per share. The initial shares received were retired by the Company. The final number of shares repurchased and retired was based on the Company's volume-weighted average share price during the repurchase period, less a discount and subject to certain adjustments (the "Settlement Price"). Pursuant to the ASR Agreement, the financial institution elected to accelerate the settlement of the transaction in two tranches. On July 21, 2021, the financial institution transferred 168 additional shares to the Company based upon an effective Settlement Price of $66.52 and a notional value of $50,000, or one third of the total $150,000 prepayment. On July 26, 2021, the financial institution transferred 337 additional shares to the Company upon full settlement of the remaining $100,000 notional value of the transaction at the final Settlement Price of $66.45. On May 6, 2021, the Company repurchased approximately 54 shares for $3,615 from a private stockholder based upon the average stock price on that day. The cost of these share repurchases, as well as those related to the accelerated share agreement mentioned above, was allocated to "Capital in excess of stated value" on the Company's Condensed Consolidated Balance Sheet as of October 3, 2021. 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 100 shares during the nine months ended October 3, 2021, at a cost of $6,039, and 130 shares during the nine months ended September 27, 2020, at a cost of $7,335. Dividend Declarations On July 21, 2021, the Board of Directors declared a regular quarterly dividend of $0.45 per share. This dividend was paid on September 10, 2021 to all shareholders of record as of August 10, 2021. On October 19, 2021, the Board of Directors declared a regular quarterly dividend of $0.45 per share. This dividend is payable on December 10, 2021 to all shareholders of record as of November 10, 2021. |
Restructuring and Asset Impairm
Restructuring and Asset Impairment | 9 Months Ended |
Oct. 03, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment | Restructuring and Asset Impairment Due to its geographic footprint and the cost-competitive nature of its businesses, the Company is continually seeking the most cost-effective means and structure to serve its customers and to respond to fundamental changes in its markets. As such, restructuring costs have been, and are expected to be, a recurring component of the Company's operating costs. The amount of these costs can vary significantly from quarter to quarter and from year to year depending upon the scope and location of the restructuring activities. Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented: Three Months Ended Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Restructuring and restructuring-related asset impairment charges $ 3,204 $ 24,149 $ 4,048 $ 59,633 Other asset impairments 284 — 4,841 — Restructuring/Asset Impairment Charges $ 3,488 $ 24,149 $ 8,889 $ 59,633 The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred: Three Months Ended Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Severance and Termination Benefits $ 3,726 $ 4,607 $ 7,592 $ 29,866 Asset Impairments/(Gains from Disposal of Assets) (1,722) 16,605 (8,207) 25,364 Other Costs 1,200 2,937 4,663 4,403 Restructuring and restructuring-related asset impairment charges $ 3,204 $ 24,149 $ 4,048 $ 59,633 The table below sets forth restructuring and restructuring-related asset impairment charges/(gains) by reportable segment: Three Months Ended Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Consumer Packaging $ 2,450 $ 16,498 $ 3,708 $ 20,707 Industrial Paper Packaging (1,888) 6,990 (4,827) 30,189 All Other 555 762 3,075 6,727 Corporate 2,087 (101) 2,092 2,010 Restructuring and restructuring-related asset impairment charges $ 3,204 $ 24,149 $ 4,048 $ 59,633 Restructuring and asset impairment charges are included in “Restructuring/Asset impairment charges” in the Company's Condensed Consolidated Statements of Income. The following table sets forth the activity in the restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: Severance Asset Other Total Accrual Activity Liability at December 31, 2020 $ 15,955 $ — $ 511 $ 16,466 2021 charges/(gains) 7,592 (8,207) 4,663 4,048 Cash receipts/(payments) (14,790) 13,442 (5,059) (6,407) Asset write downs/disposals — (5,235) 356 (4,879) Foreign currency translation (294) — 1 (293) Liability at October 3, 2021 $ 8,463 $ — $ 472 $ 8,935 "Severance and Termination Benefits" during the first nine months of 2021 includes the cost of severance for approximately 475 employees whose positions were eliminated in conjunction with the Company's ongoing organizational effectiveness efforts. "Asset Impairment/Disposal of Assets" during the first nine months of 2021 consists primarily of gains from the sale of real estate in the Industrial Paper Packaging segment, and gains from the sale of other assets impaired in the prior year as a result of consolidations in the Company's plastics foods operations, partially offset by restructuring-related asset impairment charges in the Company's temperature-assured packaging business. “Other Costs” during the first nine months of 2021 consists 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 restructuring reserves by the end of 2022 using cash generated from operations. The Company also expects to recognize future additional charges totaling approximately $1,800 in connection with previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2021. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken. Other Asset Impairments The Company reco gnized other asset impairment charges totaling $284 and $4,841 in the thre e and nine months ended October 3, 2021, respectively. The year-to-date charges consist of fixed asset impairments totaling $2,442 in the Company's plastics foods operations, part of the Consumer Packaging segment, an d $2,399 in the temperature-assured packaging business, part of the All Other group of businesses. The assets were impaired as the value of their projected undiscounted cash flows was determined to no longer be sufficient to recover their carrying value. These asset impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s Condensed Consolidated Statements of Income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Oct. 03, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the nine months ended October 3, 2021 and September 27, 2020: Foreign Defined Cash Accumulated Balance at December 31, 2020 $ (194,024) $ (562,747) $ (71) $ (756,842) Other comprehensive (loss)/income before reclassifications (57,261) 11,302 7,804 (38,155) Amounts reclassified from accumulated other comprehensive loss to net loss — 418,521 (2,403) 416,118 Amounts reclassified from accumulated other comprehensive loss to fixed assets — — (31) (31) Other comprehensive (loss)/income (57,261) 429,823 5,370 377,932 Balance at October 3, 2021 $ (251,285) $ (132,924) $ 5,299 $ (378,910) Balance at December 31, 2019 $ (241,994) $ (574,413) $ (396) $ (816,803) Other comprehensive loss before reclassifications (35,447) (885) (3,362) (39,694) Amounts reclassified from accumulated other comprehensive loss to net income — 16,361 2,922 19,283 Other comprehensive (loss)/income (35,447) 15,476 (440) (20,411) Balance at September 27, 2020 $ (277,441) $ (558,937) $ (836) $ (837,214) The following table summarizes the effects on net income/(loss) of significant amounts reclassified from each component of accumulated other comprehensive loss for the three- and nine-month periods ended October 3, 2021 and September 27, 2020: Amount Reclassified from Accumulated Three Months Ended Nine Months Ended Details about Accumulated Other October 3, September 27, October 3, September 27, Affected Line Item in Gains/(losses) on cash flow hedges Foreign exchange contracts $ 937 $ (1,723) $ 2,766 $ (6,245) Net sales Foreign exchange contracts (711) 867 (2,129) 3,744 Cost of sales Commodity contracts 2,051 (792) 2,626 (1,346) Cost of sales $ 2,277 $ (1,648) $ 3,263 (3,847) Income/(Loss) before income taxes (607) 403 (860) 925 (Benefit from)/Provision for income taxes $ 1,670 $ (1,245) $ 2,403 (2,922) Net income/ (loss) Defined benefit pension items Effect of curtailment loss (a) — — — (31) Non-operating pension costs Effect of settlement loss (a) (21) — (547,652) (661) Non-operating pension costs Amortization of defined benefit pension items (a) (1,640) (7,103) (14,973) (21,185) Non-operating pension costs $ (1,661) $ (7,103) $ (562,625) (21,877) (Loss)/Income before income taxes 382 1,800 144,104 5,516 Provision for/(Benefit from) income taxes $ (1,279) $ (5,303) $ (418,521) (16,361) Net (loss)/income Total reclassifications for the period $ 391 $ (6,548) $ (416,118) $ (19,283) Net income/(loss) (a) See Note 11 for additional details. The following table summarizes the before and after tax amounts for the various components of other comprehensive (loss)/income for the three-month periods ended October 3, 2021 and September 27, 2020: Three months ended October 3, 2021 Three months ended September 27, 2020 Before Tax Tax After Tax Before Tax Tax After Tax Foreign currency items: Net other comprehensive (loss)/income from foreign currency items $ (37,077) $ — $ (37,077) $ 24,674 $ — $ 24,674 Defined benefit pension items: Other comprehensive income/(loss) before 559 (145) 414 (31) 8 (23) Amounts reclassified from accumulated other comprehensive loss to net income (a) 1,661 (382) 1,279 7,103 (1,800) 5,303 Net other comprehensive income/(loss) from 2,220 (527) 1,693 7,072 (1,792) 5,280 Gains and losses on cash flow hedges: Other comprehensive income/(loss) before 3,525 (940) 2,585 1,376 (336) 1,040 Amounts reclassified from accumulated other (2,277) 607 (1,670) 1,648 (403) 1,245 Amounts reclassified from accumulated other 20 (5) 15 — — — Net other comprehensive income/(loss) from 1,268 (338) 930 3,024 (739) 2,285 Other comprehensive (loss)/income $ (33,589) $ (865) $ (34,454) $ 34,770 $ (2,531) $ 32,239 (a) See Note 11 for additional details. The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the nine-month periods ended October 3, 2021 and September 27, 2020: Nine months ended October 3, 2021 Nine months ended September 27, 2020 Before Tax Tax After Tax Before Tax Tax After Tax Foreign currency items: Net other comprehensive loss from foreign currency items (a) $ (57,261) — $ (57,261) $ (27,866) (7,581) $ (35,447) Defined benefit pension items: Other comprehensive income/(loss) before 14,923 (3,621) 11,302 (1,177) 292 (885) Amounts reclassified from accumulated other comprehensive loss to net (loss)/income (b) 562,625 (144,104) 418,521 21,877 (5,516) 16,361 Net other comprehensive income/(loss) from 577,548 (147,725) 429,823 20,700 (5,224) 15,476 Gains and losses on cash flow hedges: Other comprehensive income/(loss) before 10,536 (2,732) 7,804 (4,345) 983 (3,362) Amounts reclassified from accumulated other (3,263) 860 (2,403) 3,847 (925) 2,922 Amounts reclassified from accumulated other (42) 11 (31) — — — Net other comprehensive income/(loss) from 7,231 (1,861) 5,370 (498) 58 (440) Other comprehensive income/(loss): $ 527,518 $ (149,586) $ 377,932 $ (7,664) $ (12,747) $ (20,411) (a) Other comprehensive loss from foreign currency items for the nine-month period ended September 27, 2020 includes the settlement gain and corresponding tax provision related to the termination of a net investment hedge. See Note 9 for more information. (b) See Note 11 for additional details. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Oct. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill During the first quarter of 2021, the Company changed its operating and reporting structure and, as a result, realigned certain of its reportable segments effective January 1, 2021. During the third quarter of 2021, the Company discovered that the effect of this segment realignment was not properly reflected in its goodwill footnote disclosures for the first two quarters of 2021. While the consolidated goodwill presented in the financial statements and the reported changes in activity presented in the notes were correctly stated in the previous filings, the disclosed balances by segment were incorrect. A summary of the changes in goodwill by quarter, as well as the corrected goodwill balances by segment, for the nine months ended October 3, 2021 is as follows: Consumer Industrial Paper Packaging All Other Total Goodwill at December 31, 2020, as reported $ 592,310 $ 317,958 $ 478,987 $ 1,389,255 Adjustment to correct goodwill by segment (11,066) 51,357 (40,291) — Goodwill at December 31, 2020, as corrected $ 581,244 $ 369,315 $ 438,696 $ 1,389,255 2021 Acquisitions — — — — Dispositions — — (53,039) (53,039) Foreign currency translation (4,536) (4,286) (692) (9,514) Measurement period adjustments 1,512 — — 1,512 Goodwill at April 4, 2021, as corrected $ 578,220 $ 365,029 $ 384,965 $ 1,328,214 2021 Acquisitions — 917 — 917 Dispositions — — — — Foreign currency translation 2,471 1,328 470 4,269 Measurement period adjustments — — — — Goodwill at July 4, 2021, as corrected $ 580,691 $ 367,274 $ 385,435 $ 1,333,400 2021 Acquisitions — — — — Dispositions (1,058) — — (1,058) Foreign currency translation (4,744) (2,911) (964) (8,619) Measurement period adjustments — — — — Goodwill at October 3, 2021 $ 574,889 $ 364,363 $ 384,471 $ 1,323,723 Goodwill from 2021 acquisitions relates to the acquisition of TuboTec. Measurement period adjustments relate to final working capital settlements made in the first quarter of 2021 for the prior-year acquisition of Can Packaging. Dispositions of goodwill in 2021 relate to the divestiture of the Company's U. S. display and packaging business in April 2021 and the divestiture of a small plastics foods thermoforming business in September 2021. See Note 3 for additional information. The Company assesses goodwill for impairment annually during the third quarter, or from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. The Company completed its most recent annual goodwill impairment testing during the third quarter of 2021, and analyzed certain qualitative and quantitative factors in determining whether a goodwill impairment existed. The Company's assessments reflected a number of significant management assumptions and estimates including the Company's forecast of sales, profit margins, and discount rates. Changes in these assumptions could materially impact the Company's conclusions. Based on its assessments, the Company concluded that there was no impairment of goodwill for any of its reporting units. Although no reporting units failed the annual impairment test, in management’s opinion, the goodwill of the Plastics - Healthcare reporting unit is at risk of impairment in the near term if the reporting unit's operations do not perform in line with management's expectations, or if there is a negative change in the long-term outlook for the business or in other factors such as the discount rate. Although beginning to benefit from economic recovery, the results of the Plastics – Healthcare reporting unit have been negatively impacted by end-market weakness due to the COVID-19 pandemic. In addition, the unit is facing near-term headwinds from higher raw material and other cost increases. Assuming COVID-19 infection rates continue to decline, management expects market demand will improve over the coming year and that selling price increases and/or cost reductions, including restructuring actions and investments in production efficiency projects, will mitigate the impacts of recent raw material and other cost inflation. However, should it become apparent that the ongoing post-COVID-19 recovery is likely to be significantly weaker, delayed, or prolonged compared to management’s current expectations, significant negative price/cost relationships will persist over the long-term, or profit margins do not improve as expected, goodwill impairment charges may be possible in the future. In its annual goodwill impairment analysis as of October 3, 2021, projected future cash flows for the Plastics -Healthcare reporting unit were discounted at 8.3%. Total goodwill associated with this reporting unit was $64,425 at October 3, 2021. In the latest annual impairment test, the estimated fair value of the Plastics - Healthcare reporting unit was determined to exceed its carrying value by approximately 13.3%. Based on the discounted cash flow model and holding other valuation assumptions constant, projected operating profits across all future periods would have to be reduced approximately 13.0%, or the discount rate increased to 9.3%, in order for the estimated fair value of the reporting unit to fall below carrying value. Other Intangible Assets A summary of other intangible assets as of October 3, 2021 and December 31, 2020 is as follows: October 3, December 31, Other Intangible Assets, gross: Patents $ 29,314 $ 29,325 Customer lists 585,108 622,430 Trade names 32,086 32,088 Proprietary technology 22,870 22,813 Other 2,808 2,831 Total Other Intangible Assets, gross $ 672,186 $ 709,487 Accumulated Amortization: Patents $ (15,843) $ (14,511) Customer lists (338,039) (339,159) Trade names (13,658) (12,156) Proprietary technology (21,130) (19,833) Other (1,983) (1,894) Total Accumulated Amortization $ (390,653) $ (387,553) Other Intangible Assets, net $ 281,533 $ 321,934 Other Intangible Assets are amortized on a straight-line basis over their respective useful lives, which generally range from three Aggregate amortization expense was $12,257 and $12,993 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $37,117 and $39,624 for the nine-months ended October 3, 2021 and September 27, 2020, respectively. Amortization expense on other intangible assets is expected to total approximately $49,500 in 2021, $45,600 in 2022, $41,200 in 2023, $34,100 in 2024 and $24,700 in 2025. |
Debt
Debt | 9 Months Ended |
Oct. 03, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Details of the Company's debt at October 3, 2021 and December 31, 2020 are as follows: October 3, December 31, Commercial paper $ 202,000 $ — 1.0% Euro loan due May 2021 — 183,662 9.2% debentures due August 2021 — 4,320 4.375% debentures due November 2021 — 249,741 3.125% debentures due May 2030 595,193 594,687 5.75% debentures due November 2040 536,173 599,279 Other foreign denominated debt 69,625 15,522 Finance lease obligations 51,336 37,943 Other notes 14,179 15,070 Total debt $ 1,468,506 $ 1,700,224 Less current portion and short-term notes 275,799 455,784 Long-term debt $ 1,192,707 $ 1,244,440 On April 28, 2021, the Company commenced a cash tender offer to purchase up to $300,000 of the $600,000 outstanding principal amount of its 5.75% notes due November 2040. Upon expiration of the tender on May 25, 2021, the Company repurchased 10.53% of its outstanding 5.75% notes for a total cash cost of $81,961, as shown below: Principal Amount Tendered Premium and Other Amounts Paid Total 5.75% debentures due November 2040 $ 63,206 $ 18,755 $ 81,961 On April 28, 2021, the Company entered into a reverse treasury lock agreement intended to fix the cash cost to fund approximately $100,000 of the maximum $300,000 principal amount subject to being tendered. The settlement of the reverse treasury lock on May 13, 2021 resulted in a loss of $1,356. In addition, the Company wrote off a proportional share of unamortized bond issuance costs and unamortized original issue discounts associated with the 5.75% notes. These non-cash write-offs net to $73, which combined with the hedge loss and premium and other amounts paid, resulted in a pretax loss from the early extinguishment of debt totaling $20,184. The Company's 1%, 150,000 euro-denominated debt matured on May 25, 2021, and a U.S. dollar equivalent cash payment of $177,780 was made to settle the debt. On April 7, 2021, the Company entered into two forward contracts to buy a total of 150,000 euros, to manage foreign currency risk related to the Company's funding of the debt repayment upon maturity. The Company recognized a gain of $4,387 upon the May 21, 2021 maturity of these forward contracts. The gain is included in "Selling, general and administrative expenses" on the Company's Condensed Consolidated Statements of Income for the nine months ended October 3, 2021 and the proceeds from the settlement of the contracts and the debt maturity payment are reflected in "Net cash (used)/provided by financing activities" in the Company's Condensed Consolidated Statement of Cash Flows for the nine months ended October 3, 2021. On June 30, 2021, the Company entered into a new five-year $750,000, unsecured revolving credit facility which replaced an existing credit facility entered into on July 20, 2017, and reflects substantially the same terms and conditions. Consistent with prior facilities, the new revolving credit facility supports the Company's $500,000 commercial paper program. Based on the pricing grid, the Credit Agreement and Sonoco's current credit ratings, a London Interbank Offering Rate (LIBOR) borrowing has an all-in drawn margin of 125.0 basis points. On September 21, 2021, the Company borrowed $50,000 from the revolving credit facility. These borrowings were repaid in full on October 1, 2021, prior to the end of the third quarter. On August 1, 2021, the Company repaid its $250,000, 4.375% debentures without penalty ahead of their November 2021 maturity. Also on August 1, 2021, the Company repaid its $4,321, 9.2% debentures upon their maturity. As of October 3, 2021, the Company has scheduled debt maturities through the next twelve months of $275,799 including $202,000 of outstanding commercial paper. At October 3, 2021, the Company has $160,012 in cash and cash equivalents on hand and $750,000 in committed capacity under its revolving credit facility, of which $548,000 was available for draw down net of outstanding commercial paper balances. The Company believes that these amounts, combined with expected net cash flows from operating activities, provide ample liquidity to cover these debt maturities and other cash flow needs of the Company over the course of the next year. Certain of the Company’s debt agreements impose restrictions with respect to the maintenance of financial ratios and the disposition of assets. The most restrictive covenants currently require the Company to maintain a minimum level of interest coverage and a minimum level of net worth, as defined in the agreements. As of October 3, 2021, the Company’s interest coverage and net worth were substantially above the minimum levels required under these covenants. |
Financial Instruments and Deriv
Financial Instruments and Derivatives | 9 Months Ended |
Oct. 03, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Derivatives | Financial Instruments and Derivatives The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value. October 3, 2021 December 31, 2020 Carrying Fair Carrying Fair Long-term debt, net of current portion $ 1,192,707 $ 1,428,316 $ 1,244,440 $ 1,538,132 The carrying value of cash and cash equivalents and short-term debt approximates fair value. The fair value of long-term debt is determined based on recent trade information in the financial markets of the Company’s public debt or is determined by discounting future cash flows using interest rates available to the Company for issues with similar terms and maturities which is considered a Level 2 fair value measurement. Cash Flow Hedges At October 3, 2021 and December 31, 2020, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows. These contracts, which have maturities ranging to December 2022, qualify as cash flow hedges under U.S. GAAP. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. Commodity Cash Flow Hedges Certain derivative contracts entered into to manage the cost of anticipated purchases of natural gas and aluminum have been designated by the Company as hedges. At October 3, 2021, these contracts included natural gas swaps covering approximately 2.9 million MMBTUs. These contracts represent approximately 66% and 21% of anticipated usage in North America for 2021 and 2022, respectively. The Company also has certain natural gas hedges that it does not treat as Cash Flow Hedges. See Other Derivatives below for a discussion of these hedges. The Company has also designated swap contracts covering 904 metric tons of aluminum as hedges. These contracts represent approximately 53% of anticipated aluminum usage for the remainder of 2021. The fair values of the Company’s commodity cash flow hedges netted to a gain position of $7,530 at October 3, 2021 and a loss position of $(647) at December 31, 2020. The amount of the gain included in Accumulated Other Comprehensive Income at October 3, 2021 expected to be reclassified to the income statement during the next twelve months is $4,690. Foreign Currency Cash Flow Hedges The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales, purchases, and capital spending expected to occur in 2021 and 2022. The net positions of these contracts at October 3, 2021 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 5,000,669 Mexican peso purchase 84,193 Polish zloty purchase 21,064 Czech koruna purchase 13,119 Euro purchase 12,803 Canadian dollar purchase 3,368 British pound purchase 1,697 Turkish lira purchase 633 The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to a gain position of $131 and $555 at October 3, 2021 and December 31, 2020, respectively. Gains of $131 are expected to be reclassified from accumulated other comprehensive loss to the income statement during the next twelve months. In addition, the Company has entered into forward contracts to hedge certain foreign currency cash flow transactions related to construction in progress. As of October 3, 2021 and December 31, 2020, the net position of these contracts was $(525) and $47, respectively. During the nine months ended October 3, 2021, gains from these hedges totaling $42 were reclassified from accumulated other comprehensive loss and included in the carrying value of the capitalized expenditures. Losses of $(522) are expected to be reclassified from accumulated other comprehensive loss and included in the carrying value of the related fixed assets acquired during the next twelve months. Net Investment Hedge In January 2020, the Company entered into a cross-currency swap agreement with a notional amount of $250,000 to effectively convert a portion of the Company's fixed-rate, U.S. dollar denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt. The risk management objective was to manage foreign currency risk relating to net investments in certain European subsidiaries denominated in foreign currencies. As a result of significant strengthening of the U.S. dollar and a reduction in the differential between U.S. and European interest rates, the fair market value of the swap position appreciated significantly during the first quarter of 2020. In March 2020, the Company terminated the swap agreement and received a net cash settlement of $14,480. The Company recorded this foreign currency translation gain in "Accumulated other comprehensive loss," net of a tax provision of $7,581. Other Derivatives The Company routinely enters into forward contracts or swaps to economically hedge the currency exposure of intercompany debt and foreign currency denominated receivables and payables. The Company does not apply hedge accounting treatment under ASC 815 for these instruments. As such, changes in fair value are recorded directly to income and expense in the periods that they occur. The net currency positions of these contracts at October 3, 2021, were as follows (in thousands): Currency Action Quantity Indonesian rupiah purchase 30,699,411 Colombian peso purchase 26,283,009 Mexican peso purchase 336,655 Canadian dollar purchase 5,258 In addition to the contracts designated as cash flow hedges described above, the Company has entered into other derivative contracts to manage the cost of anticipated purchases of natural gas. At October 3, 2021, these contracts consisted of natural gas swaps covering approximately 1.6 million MMBTUs and represent approximately 21% of anticipated usage in North America for 2022. The Company's designated and non-designated natural gas derivative contracts total approximately 4.5 million MMBTUs and represent approximately 66% and 42% of anticipated natural gas usage in North America for 2021 and 2022, respectively. The fair value of the Company’s other derivatives position was a gain of $3,117 an d $599 at October 3, 2021 and December 31, 2020, respectively. The following table sets forth the location and fair values of the Company’s derivative instruments at October 3, 2021 and December 31, 2020: Description Balance Sheet Location October 3, 2021 December 31, 2020 Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ 4,690 $ 867 Commodity Contracts Other assets $ 2,840 $ — Commodity Contracts Accrued expenses and other $ — $ (1,512) Commodity Contracts Other liabilities $ — $ (2) Foreign Exchange Contracts Prepaid expenses $ 333 $ 997 Foreign Exchange Contracts Accrued expenses and other $ (725) $ (395) Foreign Exchange Contracts Other liabilities $ (2) $ — Derivatives not designated as hedging instruments: Commodity Contracts Prepaid expenses $ — $ 484 Commodity Contracts Other assets $ 2,861 $ — Foreign Exchange Contracts Prepaid expenses $ 256 $ 140 Foreign Exchange Contracts Accrued expenses and other $ — $ (25) While certain of the Company’s derivative contract arrangements with its counterparties provide for the ability to settle contracts on a net basis, the Company reports its derivative positions on a gross basis. There are no collateral arrangements or requirements in these agreements. Pursuant to the May 25, 2021 maturity of the Company's 1%, 150,000 euro-denominated debt discussed in Note 8, the Company entered into two forward contracts on April 7, 2021, to buy a total of 150,000 euros, with the risk management objective of managing foreign currency risk related to the Company's funding of the debt repayment upon maturity. The Company recognized a gain of $4,387 upon the May 21, 2021, maturity of these forward contracts. The gain is included in "Selling, general and administrative expenses" on the Company's Condensed Consolidated Statements of Income for the nine months ended October 3, 2021. Pursuant to the bond tender discussed in Note 8, the Company entered into a reverse treasury lock agreement on April 28, 2021 with the intent to fix the cash cost to fund approximately $100,000 of the maximum $300,000 principal amount subject to being tendered. The settlement of the reverse treasury lock on May 13, 2021 resulted in a loss of $1,356. The loss is included in "Loss from the early extinguishment of debt" on the Company's Condensed Consolidated Statements of Income for the nine months ended October 3, 2021. The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three months ended October 3, 2021 and September 27, 2020, excluding the gains on foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures: Description Amount of Gain or Location of Gain Amount of Gain or Derivatives in Cash Flow Hedging Relationships: Three months ended October 3, 2021 Foreign Exchange Contracts $ (407) Net sales $ 937 Cost of sales $ (711) Commodity Contracts $ 4,200 Cost of sales $ 2,051 Three months ended September 27, 2020 Foreign Exchange Contracts $ 90 Net sales $ (1,723) Cost of sales $ 867 Commodity Contracts $ 1,286 Cost of sales $ (792) Description Gain or (Loss) Location of Gain or (Loss) Recognized in Derivatives not Designated as Hedging Instruments: Three months ended October 3, 2021 Commodity Contracts $ 2,861 Cost of sales Foreign Exchange Contracts $ (675) Selling, general and administrative Three months ended September 27, 2020 Commodity Contracts $ (436) Cost of sales Foreign Exchange Contracts $ 486 Selling, general and administrative Three months ended October 3, 2021 Three months ended September 27, 2020 Description Revenue Cost of Revenue Cost of Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 937 $ 1,340 $ (1,723) $ 75 The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships: Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive loss into net income $ 937 $ (711) $ (1,723) $ 867 Commodity contracts: Amount of gain reclassified from accumulated other comprehensive loss into net income $ — $ 2,051 $ — $ (792) The following tables set forth the effect of the Company’s derivative instruments on financial performance for the nine months ended October 3, 2021 and September 27, 2020, excluding the gains on foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures: Description Amount of Gain or Location of Gain Amount of Gain or Derivatives in Cash Flow Hedging Relationships: Nine months ended October 3, 2021 Foreign Exchange Contracts $ 156 Net sales $ 2,766 Cost of sales $ (2,129) Commodity Contracts $ 10,801 Cost of sales $ 2,626 Nine months ended September 27, 2020 Foreign Exchange Contracts $ (4,985) Net sales $ (6,245) Cost of sales $ 3,744 Commodity Contracts $ 640 Cost of sales $ (1,346) Description Gain or (Loss) Location of Gain or (Loss) Recognized in Derivatives not Designated as Hedging Instruments: Nine months ended October 3, 2021 Commodity Contracts $ 3,295 Cost of sales Foreign Exchange Contracts $ (906) Selling, general and administrative Nine months ended September 27, 2020 Commodity Contracts $ (252) Cost of sales Foreign Exchange Contracts $ (3,565) Selling, general and administrative Nine months ended October 3, 2021 Nine months ended September 27, 2020 Description Revenue Cost of Revenue Cost of Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 2,766 $ 497 $ — $ 2,398 The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships: Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive loss into net (loss)/income $ 2,766 $ (2,129) $ (6,245) $ 3,744 Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive loss into net (loss)/income $ — $ 2,626 $ — $ (1,346) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: Level 1 – Observable inputs such as quoted market prices in active markets; Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3 – Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. Assets that are calculated at Net Asset Value per share (NAV) are not required to be categorized within the fair value hierarchy. 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 October 3, 2021 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ 7,530 $ — $ — $ 7,530 $ — Foreign exchange contracts $ (394) $ — $ — $ (394) $ — Non-hedge derivatives, net: Commodity contracts $ 2,861 $ — $ — $ 2,861 $ — Foreign exchange contracts $ 256 $ — $ — $ 256 $ — Description December 31, 2020 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (647) $ — $ — $ (647) $ — Foreign exchange contracts $ 602 $ — $ — $ 602 $ — Non-hedge derivatives, net: Commodity contracts $ 484 $ — $ — $ 484 $ — Foreign exchange contracts $ 115 $ — $ — $ 115 $ — As discussed in Note 9, the Company uses derivatives to mitigate the effect of raw material and energy cost fluctuations, foreign currency fluctuations and, from time to time, interest rate movements. Fair value measurements for the Company’s derivatives are classified under Level 2 because such measurements are estimated based on observable inputs such as interest rates, yield curves, spot and future commodity prices and spot and future exchange rates. The Company does not currently have any non-financial assets or liabilities that are recognized or disclosed at fair value on a recurring basis. None of the Company’s financial assets or liabilities are measured at fair value using significant unobservable inputs. There were no transfers in or out of Level 1 or Level 2 fair value measurements during the three- and nine-month periods ended October 3, 2021. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Oct. 03, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Retirement Plans and Retiree Health and Life Insurance Plans The Company provides non-contributory defined benefit pension plans to certain of its employees in the United States, Mexico and Belgium. The Company also sponsors contributory defined benefit pension plans covering the majority of its employees in the United Kingdom, Canada, and the Netherlands. In addition, the Company provides postretirement healthcare and life insurance benefits to a limited number of its retirees and their dependents in the United States and Canada, based on certain age and/or service eligibility requirements. The Company froze participation in its U.S. qualified defined benefit pension plan for newly hired salaried and non-union hourly employees effective December 31, 2003. To replace this benefit, non-union U.S. employees hired on or after January 1, 2004, are provided an annual contribution, called the Sonoco Retirement Contribution (SRC), to their participant accounts in the Sonoco Retirement and Savings Plan. The SRC is equal to 4% of the participant's eligible pay plus 4% of eligible pay in excess of the social security wage base. On February 4, 2009, the U.S. qualified defined benefit pension plan was further amended to freeze plan benefits for all active, non-union participants effective December 31, 2018. Remaining active participants in the U.S. qualified plan became eligible for SRC contributions effective January 1, 2019. In October 2021, the Company's Board of Directors approved a resolution authorizing amendments to the Sonoco Retirement and Savings Plan to eliminate the SRC contribution and increase the Company's match on elective contributions to the Plan from 50% of the first 4% of compensation contributed by participants to 100% of the first 6%. These amendments will be effective January 1, 2022. The components of net periodic benefit cost include the following: Three Months Ended Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Retirement Plans Service cost $ 968 $ 881 $ 2,949 $ 2,966 Interest cost 2,287 12,785 22,051 38,015 Expected return on plan assets (3,361) (12,427) (21,672) (37,234) Amortization of prior service cost 226 245 687 742 Amortization of net actuarial loss 1,600 7,136 14,849 21,270 Effect of curtailment loss — — — 31 Effect of settlement loss 21 — 547,652 661 Net periodic benefit cost $ 1,741 $ 8,620 $ 566,516 $ 26,451 Retiree Health and Life Insurance Plans Service cost $ 93 $ 89 $ 282 $ 265 Interest cost 49 84 149 249 Expected return on plan assets (111) (92) (335) (275) Amortization of prior service credit — (70) — (207) Amortization of net actuarial gain (186) (208) (563) (620) Net periodic benefit income $ (155) $ (197) $ (467) $ (588) The Company made aggregate contributions of $142,615 and $12,292 to its defined benefit retirement and retiree health and life insurance plans during the nine months ended October 3, 2021 and September 27, 2020, respectively. The Company expects to make additional aggregate contributions of approximately $6,500 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2021. Plan Termination and Settlement As disclosed in previous filings, the Company terminated the Sonoco Pension Plan for Inactive Participants (the "Inactive Plan"), a tax-qualified defined benefit plan, effective September 30, 2019. The Company settled the liabilities of the Inactive Plan in the second quarter of 2021 through a combination of lump-sum payments and the purchase of group annuity contracts. In order for the Inactive Plan to be fully funded upon final settlement, the Company contributed $133,000 to the Inactive Plan during the second quarter of 2021. Non-cash, pre-tax settlement charges totaling $547,291 were recognized in the second quarter of 2021 as the lump sum payouts and annuity purchases were made. Settlements and Curtailments The Company recognized additional settlement cha rges of $361 and $661 during the nine months ended October 3, 2021 and September 27, 2020, respectively. These charges resulted from payments made to certain participants in the Company's non-union Canadian pension plan who elected a lump sum distribution option upon retirement. Additional settlement charges related to the Canadian pension plans may be recognized over the remainder of 2021 as a result of ongoing lump-sum distributions and restructuring actions. In addition, curtailment charges totaling $31 related to the closure of a paper mill in Canada were recognized during the nine months ended September 27, 2020. Sonoco Retirement Contribution (SRC) SRC contributions, which are funded annually in the first quarter, totaled $22,665 during the nine months ended October 3, 2021, and $22,503 during the nine months ended September 27, 2020. No additional SRC contributions are expected during the remainder of 2021. The Company recognized expense related to the SRC of $5,456 and $5,589 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $17,290 and $17,283 for the nine months ended October 3, 2021 and September 27, 2020, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rates for the three- and nine-month periods ended October 3, 2021 were 2.3% and 37.0%, respectively, and its effective tax rates for the three- and nine-month periods ended September 27, 2020 were (0.8)% and 18.6%, respectively. The Company's effective tax rates vary from the U.S. statutory rate due primarily to a $30,000 net recognized benefit associated with the amendment of the Company's 2017 U.S. income tax return to report increased utilization of its foreign tax credits in the third quarter of 2021 and a $20,355 write-down of a deferred tax liability related to classifying the Company's European contract packaging business as "held for sale" in the third quarter of 2020. To a lesser extent the Company's effective tax rates vary from the U.S. statutory rate due to state taxes, taxes on operations in international jurisdictions with effective tax rates different than the U.S. statutory rate, the release or build of reserves for uncertain tax positions and various other tax adjustments. As previously disclosed, in February 2017 the Company received a Notice of Proposed Adjustment (“NOPA”) from the Internal Revenue Service (“IRS”) proposing adjustments to the 2012 and 2013 tax years. In 2018, the Company filed a protest to the proposed deficiency and the matter was referred to the Appeals Division of the IRS. In the second quarter of 2021, the Company paid $5,613 in taxes and interest to settle the dispute. The Company and/or its subsidiaries file federal, state and local income tax returns in the United States and various foreign jurisdictions. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years prior to 2015. |
Leases
Leases | 9 Months Ended |
Oct. 03, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, and warehouses), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company's lease contracts is at the Company's sole discretion. Most real estate leases, in particular, include one or more options to renew, with renewal terms that can extend the lease term from one As the implicit rate in the Company's leases is not readily determinable, the Company calculates its lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years. The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at October 3, 2021 and December 31, 2020: Classification Balance Sheet Location October 3, 2021 December 31, 2020 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 269,855 $ 296,020 Finance lease assets Other Assets 47,154 36,267 Total lease assets $ 317,009 $ 332,287 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 44,588 $ 52,138 Current finance lease liabilities Notes payable and current portion of debt 6,236 4,663 Total current lease liabilities $ 50,824 $ 56,801 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 236,590 $ 262,048 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 45,101 33,280 Total noncurrent lease liabilities $ 281,691 $ 295,328 Total lease liabilities $ 332,515 $ 352,129 Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term. The following table sets forth the components of the Company's total lease cost for the three- and nine- month periods ended October 3, 2021 and September 27, 2020: Three Months Ended Nine Months Ended Lease Cost October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Operating lease cost (a) $ 11,623 $ 18,192 $ 36,720 $ 46,903 Finance lease cost: Amortization of lease asset (a) 1,476 1,061 4,133 5,999 Interest on lease liabilities (b) 367 258 997 721 Variable lease cost (a) (c) 6,796 7,455 19,569 29,316 Total lease cost $ 20,262 $ 26,966 $ 61,419 $ 82,939 (a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively. (b) Included in interest expense. (c) Also includes short term lease costs, which are deemed immaterial . The following table sets forth certain lease-related information for the nine months ended October 3, 2021 and September 27, 2020: Nine Months Ended October 3, 2021 September 27, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 38,757 $ 43,858 Operating cash flows used by finance leases $ 997 $ 721 Financing cash flows used by finance leases $ 3,375 $ 6,440 Noncash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities $ 12,230 $ 84,578 Leased assets obtained in exchange for new finance lease liabilities $ 7,071 $ 19,122 Modification to leased assets for increase/(decrease) in operating lease liabilities $ 12,059 $ (3,977) Modification to leased assets for increase in finance lease liabilities $ 9,586 $ 19,194 Termination reclasses to decrease operating lease assets $ (4,971) $ (4,232) Termination reclasses to decrease operating lease liabilities $ (5,278) $ (4,611) Termination reclasses to decrease finance lease assets $ (33) $ (19,994) Termination reclasses to decrease finance lease liabilities $ (40) $ (20,121) |
Leases | Leases The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, and warehouses), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company's lease contracts is at the Company's sole discretion. Most real estate leases, in particular, include one or more options to renew, with renewal terms that can extend the lease term from one As the implicit rate in the Company's leases is not readily determinable, the Company calculates its lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years. The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at October 3, 2021 and December 31, 2020: Classification Balance Sheet Location October 3, 2021 December 31, 2020 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 269,855 $ 296,020 Finance lease assets Other Assets 47,154 36,267 Total lease assets $ 317,009 $ 332,287 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 44,588 $ 52,138 Current finance lease liabilities Notes payable and current portion of debt 6,236 4,663 Total current lease liabilities $ 50,824 $ 56,801 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 236,590 $ 262,048 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 45,101 33,280 Total noncurrent lease liabilities $ 281,691 $ 295,328 Total lease liabilities $ 332,515 $ 352,129 Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term. The following table sets forth the components of the Company's total lease cost for the three- and nine- month periods ended October 3, 2021 and September 27, 2020: Three Months Ended Nine Months Ended Lease Cost October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Operating lease cost (a) $ 11,623 $ 18,192 $ 36,720 $ 46,903 Finance lease cost: Amortization of lease asset (a) 1,476 1,061 4,133 5,999 Interest on lease liabilities (b) 367 258 997 721 Variable lease cost (a) (c) 6,796 7,455 19,569 29,316 Total lease cost $ 20,262 $ 26,966 $ 61,419 $ 82,939 (a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively. (b) Included in interest expense. (c) Also includes short term lease costs, which are deemed immaterial . The following table sets forth certain lease-related information for the nine months ended October 3, 2021 and September 27, 2020: Nine Months Ended October 3, 2021 September 27, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 38,757 $ 43,858 Operating cash flows used by finance leases $ 997 $ 721 Financing cash flows used by finance leases $ 3,375 $ 6,440 Noncash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities $ 12,230 $ 84,578 Leased assets obtained in exchange for new finance lease liabilities $ 7,071 $ 19,122 Modification to leased assets for increase/(decrease) in operating lease liabilities $ 12,059 $ (3,977) Modification to leased assets for increase in finance lease liabilities $ 9,586 $ 19,194 Termination reclasses to decrease operating lease assets $ (4,971) $ (4,232) Termination reclasses to decrease operating lease liabilities $ (5,278) $ (4,611) Termination reclasses to decrease finance lease assets $ (33) $ (19,994) Termination reclasses to decrease finance lease liabilities $ (40) $ (20,121) |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 03, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company records revenue when control is transferred to the customer, which is either upon shipment or over time in cases where the Company is entitled to payment with margin for products produced that are customer specific without alternative use. The Company recognizes over time revenue under the input method as goods are produced. Revenue that is recognized at a point in time is recognized when the customer obtains control of the goods. Customers obtain control either when goods are delivered to the customer facility, if the Company is responsible for arranging transportation, or when picked up by the customer's designated carrier. The Company commonly enters into Master Supply Arrangements with customers to provide goods and/or services over specific time periods. Customers submit purchase orders with quantities and prices to create a contract for accounting purposes. Shipping and handling expenses are included in "Cost of Sales," and freight charged to customers is included in "Net Sales" in the Company's Condensed Consolidated Statements of Income. The Company has rebate agreements with certain customers. These rebates are recorded as reductions of revenue and are accrued using sales data and rebate percentages specific to each customer agreement. Accrued customer rebates are included in "Accrued expenses and other" in the Company's Condensed Consolidated Balance Sheets. Payment terms under the Company's sales arrangements are short term, generally no longer than 120 days. The Company does provide prompt payment discounts to certain customers if invoices are paid within a predetermined period. Prompt payment discounts are treated as a reduction of revenue and are determinable within a short time period following the sale. The following tables set forth the effects of contract assets and liabilities from contracts with customers. Contract assets and liabilities are reported in "Other receivables" and "Accrued expenses and other," respectively, on the Company's Condensed Consolidated Balance Sheets. October 3, 2021 December 31, 2020 Contract Assets $ 49,377 $ 48,390 Contract Liabilities $ (19,148) $ (16,687) Significant changes in the contract assets and liabilities balances during the nine months ended October 3, 2021 and the year ended December 31, 2020 were as follows: October 3, 2021 December 31, 2020 Contract Contract Contract Contract Beginning Balance $ 48,390 $ (16,687) $ 56,364 $ (17,047) Revenue deferred or rebates accrued — (28,142) — (32,512) Recognized as revenue 5,110 9,189 Rebates paid to customers — 20,571 — 23,683 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 49,377 — 48,390 — Transferred to receivables from contract assets recognized at the beginning of the period (48,390) — (56,364) — Ending Balance $ 49,377 $ (19,148) $ 48,390 $ (16,687) Contract assets and liabilities are generally short in duration given the nature of products produced by the Company. Contract assets represent goods produced without alternative use for which the Company is entitled to payment with margin prior to shipment. Upon shipment, the Company is entitled to bill the customer, and therefore amounts included in contract assets will be reduced with the recording of an account receivable as they represent an unconditional right to payment. Contract liabilities represent revenue deferred due to pricing mechanisms utilized by the Company in certain multi-year arrangements, volume rebates, and payments received in advance. For multi-year arrangements with pricing mechanisms, the Company will generally defer revenue during the first half of the arrangement and will release the deferral over the back half of the contract term. The Company's reportable segments are aligned by product nature as disclosed in Note 15 . The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended October 3, 2021 and September 27, 2020. The tables also include a reconciliation of disaggregated revenue with reportable segments. Three months ended October 3, 2021 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 408,295 $ 370,659 $ 145,029 $ 923,983 Europe 109,566 99,573 24,033 233,172 Canada 31,612 24,187 — 55,799 Asia 20,728 81,097 393 102,218 Other 28,768 59,714 11,539 100,021 Total $ 598,969 $ 635,230 $ 180,994 $ 1,415,193 Three months ended September 27, 2020 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 387,658 $ 293,968 $ 166,878 $ 848,504 Europe 96,698 78,780 100,418 275,896 Canada 22,131 17,749 — 39,880 Asia 19,710 61,463 147 81,320 Other 20,011 38,409 8,294 66,714 Total $ 546,208 $ 490,369 $ 275,737 $ 1,312,314 The following tables set forth information about revenue disaggregated by primary geographic regions for the nine-month periods ended October 3, 2021 and September 27, 2020. The tables also include a reconciliation of disaggregated revenue with reportable segments. Nine months ended October 3, 2021 Consumer Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 1,219,666 $ 1,042,249 $ 461,996 $ 2,723,911 Europe 334,995 300,495 67,371 702,861 Canada 87,948 69,218 — 157,166 Asia 60,256 232,657 914 293,827 Other 76,660 164,540 32,286 273,486 Total $ 1,779,525 $ 1,809,159 $ 562,567 $ 4,151,251 Nine months ended September 27, 2020 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 1,194,067 $ 863,514 $ 470,583 $ 2,528,164 Europe 276,848 237,599 261,458 775,905 Canada 74,708 64,322 — 139,030 Asia 53,993 170,046 535 224,574 Other 60,327 112,405 20,690 193,422 Total $ 1,659,943 $ 1,447,886 $ 753,266 $ 3,861,095 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Oct. 03, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company changed its operating and reporting structure in January 2021 and, as a result, realigned certain of its reportable segments effective January 1, 2021. The revised structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as "All Other." The Company's former Protective Solutions and Display and Packaging segments have been eliminated and the underlying businesses and their results have been realigned into All Other or, in certain cases, subsumed into the remaining two segments. The Consumer Packaging segment primarily serves prepared and fresh food markets along with other packaging for direct consumer products and includes the following products and services: round and shaped rigid paper containers; metal and peelable membrane ends and closures; thermoformed plastic trays and containers; p rinted flexible packaging; and global brand artwork management. The Industrial Paper Packaging segment, previously called Paper and Industrial Converted Products, includes the following products: fiber-based tubes, cones, and cores; fiber-based construction tubes; fiber-based protective packaging and components; wooden, metal and composite wire and cable reels and spools; and recycled paperboard, corrugating medium, recovered paper and material recycling services. Businesses grouped as All Other include healthcare, protective and retail security packaging and industrial plastic products. These businesses include the following products and services: thermoformed rigid plastic trays and devices; custom-engineered molded foam protective packaging and components; temperature-assured packaging; injection molded and extruded containers, spools and parts; retail security packaging, including printed backer cards, thermoformed blisters and heat sealing equipment; and paper amenities. Prior to the divestiture of the Company's global display and packaging business in two separate transactions, the European contract packaging business on November 30, 2020 and the U.S. display and packaging business on April 4, 2021, these businesses, which included point-of-purchase displays, fulfillment operations, and contract packaging, were reported in All Other. The following table sets forth net sales, intersegment sales and operating profit for the Company’s reportable segments and All Other. “Segment operating profit” is defined as the segment’s portion of “Operating profit” excluding restructuring and asset impairment charges, acquisition expenses, interest income and expense, income taxes or certain other items, if any, the exclusion of which the Company believes improves comparability and analysis of the financial performance of the business. General corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and All Other. Prior period results have been recast to conform to current-year presentation. SEGMENT FINANCIAL INFORMATION Three Months Ended Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Net sales: Consumer Packaging $ 598,969 $ 546,208 $ 1,779,525 $ 1,659,943 Industrial Paper Packaging 635,230 490,369 1,809,159 1,447,886 All Other 180,994 275,737 562,567 753,266 Consolidated $ 1,415,193 $ 1,312,314 $ 4,151,251 $ 3,861,095 Intersegment sales: Consumer Packaging $ 1,608 $ 919 $ 4,460 $ 3,179 Industrial Paper Packaging 27,975 24,528 82,571 73,538 All Other 2,318 1,814 7,483 5,970 Consolidated $ 31,901 $ 27,261 $ 94,514 $ 82,687 Operating profit: Segment operating profit: Consumer Packaging $ 60,918 $ 64,370 $ 196,341 $ 212,575 Industrial Paper Packaging 53,343 41,035 161,414 133,871 All Other 8,169 25,136 32,952 54,563 Restructuring/Asset impairment charges (3,488) (24,149) (8,889) (59,633) Other non-base income/(charges), net 7,570 352 294 (802) Consolidated $ 126,512 $ 106,744 $ 382,112 $ 340,574 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 03, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Pursuant to U.S. GAAP, accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and that the amounts are reasonably estimable. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings from a variety of sources. Some of these exposures, as discussed below, have the potential to be material. Environmental Matters The Company is subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which it operates. Spartanburg In connection with its acquisition of Tegrant in November 2011, the Company identified potential environmental contamination at a site in Spartanburg, South Carolina. The total remediation cost of the Spartanburg site was estimated to be $17,400 at the time of acquisition and an accrual in this amount was recorded on Tegrant’s opening balance sheet. Based on favorable developments at the site, the Company reduced its environmental reserve by $10,000 in the third quarter of 2019 in order to reflect its revised best estimate of what it is likely to pay in order to complete the remediation. Since the acquisition, the Company has spent a total of $1,786 on remediation of the Spartanburg site. At October 3, 2021 and December 31, 2020, the Company's accrual for environmental contingencies related to the Spartanburg site totaled $5,614 and $5,700, respectively. The Company cannot currently estimate its potential liability, damages or range of potential loss, if any, beyond the amounts accrued with respect to this exposure. However, the Company does not believe that the resolution of this matter has a reasonable possibility of having a material adverse effect on the Company's financial statements. Other environmental matters The Company has been named as a potentially responsible party at several other environmentally contaminated sites. All of the sites are also the responsibility of other parties. The potential remediation liabilities are shared with such other parties, and, in most cases, the Company’s share, if any, cannot be reasonably estimated at the current time. However, the Company does not believe that the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company's financial statements. At October 3, 2021 and December 31, 2020, the Company's accrual for these other sites totaled $1,829 and $2,433, respectively. Summary As of October 3, 2021 and December 31, 2020, the Company (and its subsidiaries) had accrued $7,443 and $8,133, respectively, related to environmental contingencies. These accruals are included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets. Other Legal Matters In addition to those matters described above, the Company is subject to other various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters could differ from management’s expectations, the Company does not believe the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s financial statements. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Oct. 03, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | During the nine-month period ended October 3, 2021, there have been no newly issued nor newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at October 3, 2021, there are no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements. |
Fair Value Measurements | Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: Level 1 – Observable inputs such as quoted market prices in active markets; Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3 – Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Commitments and Contingencies | Pursuant to U.S. GAAP, accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and that the amounts are reasonably estimable. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings from a variety of sources. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets and Liabilities Held-for-sale | Assets and liabilities disposed of in the sales of U.S. Display and Packaging and Wilson Thermoforming included the following: U.S. Display and Packaging Wilson Thermoforming Trade accounts receivable $ 26,342 $ — Inventories 8,434 1,805 Property, plant and equipment, net 9,551 550 Right of use asset - operating leases 11,627 147 Goodwill 53,039 1,058 Trade accounts payable (10,735) — Accrued expenses (2,197) (54) Operating lease liabilities (12,343) (70) Other net tangible assets 716 — Net asset disposal $ 84,434 $ 3,436 Net Proceeds 81,675 3,528 Loss/(Gain) on sale of business $ 2,759 $ (92) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Equity [Abstract] | |
Earnings (Loss) per share | The following table sets forth the computation of basic and diluted earnings/(loss) per share: Three Months Ended Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Numerator: Net income/(loss) attributable to Sonoco $ 111,140 $ 83,449 $ (150,634) $ 219,105 Denominator: Weighted average common shares outstanding: Basic 98,955 100,974 100,039 100,935 Dilutive effect of stock-based compensation 470 271 — 220 Diluted 99,425 101,245 100,039 101,155 Net income/(loss) attributable to Sonoco per common share: Basic $ 1.12 $ 0.83 $ (1.51) $ 2.17 Diluted $ 1.12 $ 0.82 $ (1.51) $ 2.17 Cash dividends $ 0.45 $ 0.43 $ 1.35 $ 1.29 |
Schedule of antidilutive securities excluded from computation of earnings per share | The average numbers of SARs that were anti-dilutive and, therefore, not included in the computation of diluted earnings per share during the three- and nine-month periods ended October 3, 2021 and September 27, 2020 were as follows: Three Months Ended Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Anti-dilutive stock appreciation rights — 752 142 844 Nine Months Ended October 3, 2021 Dilutive securities excluded due to reported loss 469 |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and restructuring-related asset impairment expenses by type incurred and by reportable segment | Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented: Three Months Ended Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Restructuring and restructuring-related asset impairment charges $ 3,204 $ 24,149 $ 4,048 $ 59,633 Other asset impairments 284 — 4,841 — Restructuring/Asset Impairment Charges $ 3,488 $ 24,149 $ 8,889 $ 59,633 The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred: Three Months Ended Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Severance and Termination Benefits $ 3,726 $ 4,607 $ 7,592 $ 29,866 Asset Impairments/(Gains from Disposal of Assets) (1,722) 16,605 (8,207) 25,364 Other Costs 1,200 2,937 4,663 4,403 Restructuring and restructuring-related asset impairment charges $ 3,204 $ 24,149 $ 4,048 $ 59,633 The table below sets forth restructuring and restructuring-related asset impairment charges/(gains) by reportable segment: Three Months Ended Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Consumer Packaging $ 2,450 $ 16,498 $ 3,708 $ 20,707 Industrial Paper Packaging (1,888) 6,990 (4,827) 30,189 All Other 555 762 3,075 6,727 Corporate 2,087 (101) 2,092 2,010 Restructuring and restructuring-related asset impairment charges $ 3,204 $ 24,149 $ 4,048 $ 59,633 |
Restructuring accrual activity | The following table sets forth the activity in the restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: Severance Asset Other Total Accrual Activity Liability at December 31, 2020 $ 15,955 $ — $ 511 $ 16,466 2021 charges/(gains) 7,592 (8,207) 4,663 4,048 Cash receipts/(payments) (14,790) 13,442 (5,059) (6,407) Asset write downs/disposals — (5,235) 356 (4,879) Foreign currency translation (294) — 1 (293) Liability at October 3, 2021 $ 8,463 $ — $ 472 $ 8,935 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Equity [Abstract] | |
Components of accumulated other comprehensive loss | The following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the nine months ended October 3, 2021 and September 27, 2020: Foreign Defined Cash Accumulated Balance at December 31, 2020 $ (194,024) $ (562,747) $ (71) $ (756,842) Other comprehensive (loss)/income before reclassifications (57,261) 11,302 7,804 (38,155) Amounts reclassified from accumulated other comprehensive loss to net loss — 418,521 (2,403) 416,118 Amounts reclassified from accumulated other comprehensive loss to fixed assets — — (31) (31) Other comprehensive (loss)/income (57,261) 429,823 5,370 377,932 Balance at October 3, 2021 $ (251,285) $ (132,924) $ 5,299 $ (378,910) Balance at December 31, 2019 $ (241,994) $ (574,413) $ (396) $ (816,803) Other comprehensive loss before reclassifications (35,447) (885) (3,362) (39,694) Amounts reclassified from accumulated other comprehensive loss to net income — 16,361 2,922 19,283 Other comprehensive (loss)/income (35,447) 15,476 (440) (20,411) Balance at September 27, 2020 $ (277,441) $ (558,937) $ (836) $ (837,214) |
Effects on net income of significant amounts reclassified from accumulated other comprehensive loss | The following table summarizes the effects on net income/(loss) of significant amounts reclassified from each component of accumulated other comprehensive loss for the three- and nine-month periods ended October 3, 2021 and September 27, 2020: Amount Reclassified from Accumulated Three Months Ended Nine Months Ended Details about Accumulated Other October 3, September 27, October 3, September 27, Affected Line Item in Gains/(losses) on cash flow hedges Foreign exchange contracts $ 937 $ (1,723) $ 2,766 $ (6,245) Net sales Foreign exchange contracts (711) 867 (2,129) 3,744 Cost of sales Commodity contracts 2,051 (792) 2,626 (1,346) Cost of sales $ 2,277 $ (1,648) $ 3,263 (3,847) Income/(Loss) before income taxes (607) 403 (860) 925 (Benefit from)/Provision for income taxes $ 1,670 $ (1,245) $ 2,403 (2,922) Net income/ (loss) Defined benefit pension items Effect of curtailment loss (a) — — — (31) Non-operating pension costs Effect of settlement loss (a) (21) — (547,652) (661) Non-operating pension costs Amortization of defined benefit pension items (a) (1,640) (7,103) (14,973) (21,185) Non-operating pension costs $ (1,661) $ (7,103) $ (562,625) (21,877) (Loss)/Income before income taxes 382 1,800 144,104 5,516 Provision for/(Benefit from) income taxes $ (1,279) $ (5,303) $ (418,521) (16,361) Net (loss)/income Total reclassifications for the period $ 391 $ (6,548) $ (416,118) $ (19,283) Net income/(loss) (a) See Note 11 for additional details. |
Before and after tax amounts for comprehensive income (loss) components | The following table summarizes the before and after tax amounts for the various components of other comprehensive (loss)/income for the three-month periods ended October 3, 2021 and September 27, 2020: Three months ended October 3, 2021 Three months ended September 27, 2020 Before Tax Tax After Tax Before Tax Tax After Tax Foreign currency items: Net other comprehensive (loss)/income from foreign currency items $ (37,077) $ — $ (37,077) $ 24,674 $ — $ 24,674 Defined benefit pension items: Other comprehensive income/(loss) before 559 (145) 414 (31) 8 (23) Amounts reclassified from accumulated other comprehensive loss to net income (a) 1,661 (382) 1,279 7,103 (1,800) 5,303 Net other comprehensive income/(loss) from 2,220 (527) 1,693 7,072 (1,792) 5,280 Gains and losses on cash flow hedges: Other comprehensive income/(loss) before 3,525 (940) 2,585 1,376 (336) 1,040 Amounts reclassified from accumulated other (2,277) 607 (1,670) 1,648 (403) 1,245 Amounts reclassified from accumulated other 20 (5) 15 — — — Net other comprehensive income/(loss) from 1,268 (338) 930 3,024 (739) 2,285 Other comprehensive (loss)/income $ (33,589) $ (865) $ (34,454) $ 34,770 $ (2,531) $ 32,239 (a) See Note 11 for additional details. The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the nine-month periods ended October 3, 2021 and September 27, 2020: Nine months ended October 3, 2021 Nine months ended September 27, 2020 Before Tax Tax After Tax Before Tax Tax After Tax Foreign currency items: Net other comprehensive loss from foreign currency items (a) $ (57,261) — $ (57,261) $ (27,866) (7,581) $ (35,447) Defined benefit pension items: Other comprehensive income/(loss) before 14,923 (3,621) 11,302 (1,177) 292 (885) Amounts reclassified from accumulated other comprehensive loss to net (loss)/income (b) 562,625 (144,104) 418,521 21,877 (5,516) 16,361 Net other comprehensive income/(loss) from 577,548 (147,725) 429,823 20,700 (5,224) 15,476 Gains and losses on cash flow hedges: Other comprehensive income/(loss) before 10,536 (2,732) 7,804 (4,345) 983 (3,362) Amounts reclassified from accumulated other (3,263) 860 (2,403) 3,847 (925) 2,922 Amounts reclassified from accumulated other (42) 11 (31) — — — Net other comprehensive income/(loss) from 7,231 (1,861) 5,370 (498) 58 (440) Other comprehensive income/(loss): $ 527,518 $ (149,586) $ 377,932 $ (7,664) $ (12,747) $ (20,411) (a) Other comprehensive loss from foreign currency items for the nine-month period ended September 27, 2020 includes the settlement gain and corresponding tax provision related to the termination of a net investment hedge. See Note 9 for more information. (b) See Note 11 for additional details. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in goodwill by segment | A summary of the changes in goodwill by quarter, as well as the corrected goodwill balances by segment, for the nine months ended October 3, 2021 is as follows: Consumer Industrial Paper Packaging All Other Total Goodwill at December 31, 2020, as reported $ 592,310 $ 317,958 $ 478,987 $ 1,389,255 Adjustment to correct goodwill by segment (11,066) 51,357 (40,291) — Goodwill at December 31, 2020, as corrected $ 581,244 $ 369,315 $ 438,696 $ 1,389,255 2021 Acquisitions — — — — Dispositions — — (53,039) (53,039) Foreign currency translation (4,536) (4,286) (692) (9,514) Measurement period adjustments 1,512 — — 1,512 Goodwill at April 4, 2021, as corrected $ 578,220 $ 365,029 $ 384,965 $ 1,328,214 2021 Acquisitions — 917 — 917 Dispositions — — — — Foreign currency translation 2,471 1,328 470 4,269 Measurement period adjustments — — — — Goodwill at July 4, 2021, as corrected $ 580,691 $ 367,274 $ 385,435 $ 1,333,400 2021 Acquisitions — — — — Dispositions (1,058) — — (1,058) Foreign currency translation (4,744) (2,911) (964) (8,619) Measurement period adjustments — — — — Goodwill at October 3, 2021 $ 574,889 $ 364,363 $ 384,471 $ 1,323,723 |
Summary of other intangible assets | A summary of other intangible assets as of October 3, 2021 and December 31, 2020 is as follows: October 3, December 31, Other Intangible Assets, gross: Patents $ 29,314 $ 29,325 Customer lists 585,108 622,430 Trade names 32,086 32,088 Proprietary technology 22,870 22,813 Other 2,808 2,831 Total Other Intangible Assets, gross $ 672,186 $ 709,487 Accumulated Amortization: Patents $ (15,843) $ (14,511) Customer lists (338,039) (339,159) Trade names (13,658) (12,156) Proprietary technology (21,130) (19,833) Other (1,983) (1,894) Total Accumulated Amortization $ (390,653) $ (387,553) Other Intangible Assets, net $ 281,533 $ 321,934 |
Debt (Table)
Debt (Table) | 9 Months Ended |
Oct. 03, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Details of the Company's debt at October 3, 2021 and December 31, 2020 are as follows: October 3, December 31, Commercial paper $ 202,000 $ — 1.0% Euro loan due May 2021 — 183,662 9.2% debentures due August 2021 — 4,320 4.375% debentures due November 2021 — 249,741 3.125% debentures due May 2030 595,193 594,687 5.75% debentures due November 2040 536,173 599,279 Other foreign denominated debt 69,625 15,522 Finance lease obligations 51,336 37,943 Other notes 14,179 15,070 Total debt $ 1,468,506 $ 1,700,224 Less current portion and short-term notes 275,799 455,784 Long-term debt $ 1,192,707 $ 1,244,440 |
Schedule of Debt Repurchased | Upon expiration of the tender on May 25, 2021, the Company repurchased 10.53% of its outstanding 5.75% notes for a total cash cost of $81,961, as shown below: Principal Amount Tendered Premium and Other Amounts Paid Total 5.75% debentures due November 2040 $ 63,206 $ 18,755 $ 81,961 |
Financial Instruments and Der_2
Financial Instruments and Derivatives (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Carrying amounts and fair values of financial instruments | October 3, 2021 December 31, 2020 Carrying Fair Carrying Fair Long-term debt, net of current portion $ 1,192,707 $ 1,428,316 $ 1,244,440 $ 1,538,132 |
Net positions of foreign contracts | The net positions of these contracts at October 3, 2021 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 5,000,669 Mexican peso purchase 84,193 Polish zloty purchase 21,064 Czech koruna purchase 13,119 Euro purchase 12,803 Canadian dollar purchase 3,368 British pound purchase 1,697 Turkish lira purchase 633 |
Net positions of other derivatives contracts | The net currency positions of these contracts at October 3, 2021, were as follows (in thousands): Currency Action Quantity Indonesian rupiah purchase 30,699,411 Colombian peso purchase 26,283,009 Mexican peso purchase 336,655 Canadian dollar purchase 5,258 |
Location and fair values of derivative instruments | The following table sets forth the location and fair values of the Company’s derivative instruments at October 3, 2021 and December 31, 2020: Description Balance Sheet Location October 3, 2021 December 31, 2020 Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ 4,690 $ 867 Commodity Contracts Other assets $ 2,840 $ — Commodity Contracts Accrued expenses and other $ — $ (1,512) Commodity Contracts Other liabilities $ — $ (2) Foreign Exchange Contracts Prepaid expenses $ 333 $ 997 Foreign Exchange Contracts Accrued expenses and other $ (725) $ (395) Foreign Exchange Contracts Other liabilities $ (2) $ — Derivatives not designated as hedging instruments: Commodity Contracts Prepaid expenses $ — $ 484 Commodity Contracts Other assets $ 2,861 $ — Foreign Exchange Contracts Prepaid expenses $ 256 $ 140 Foreign Exchange Contracts Accrued expenses and other $ — $ (25) |
Effect of derivative instruments on financial performance | The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three months ended October 3, 2021 and September 27, 2020, excluding the gains on foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures: Description Amount of Gain or Location of Gain Amount of Gain or Derivatives in Cash Flow Hedging Relationships: Three months ended October 3, 2021 Foreign Exchange Contracts $ (407) Net sales $ 937 Cost of sales $ (711) Commodity Contracts $ 4,200 Cost of sales $ 2,051 Three months ended September 27, 2020 Foreign Exchange Contracts $ 90 Net sales $ (1,723) Cost of sales $ 867 Commodity Contracts $ 1,286 Cost of sales $ (792) Description Gain or (Loss) Location of Gain or (Loss) Recognized in Derivatives not Designated as Hedging Instruments: Three months ended October 3, 2021 Commodity Contracts $ 2,861 Cost of sales Foreign Exchange Contracts $ (675) Selling, general and administrative Three months ended September 27, 2020 Commodity Contracts $ (436) Cost of sales Foreign Exchange Contracts $ 486 Selling, general and administrative Three months ended October 3, 2021 Three months ended September 27, 2020 Description Revenue Cost of Revenue Cost of Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 937 $ 1,340 $ (1,723) $ 75 The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships: Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive loss into net income $ 937 $ (711) $ (1,723) $ 867 Commodity contracts: Amount of gain reclassified from accumulated other comprehensive loss into net income $ — $ 2,051 $ — $ (792) The following tables set forth the effect of the Company’s derivative instruments on financial performance for the nine months ended October 3, 2021 and September 27, 2020, excluding the gains on foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures: Description Amount of Gain or Location of Gain Amount of Gain or Derivatives in Cash Flow Hedging Relationships: Nine months ended October 3, 2021 Foreign Exchange Contracts $ 156 Net sales $ 2,766 Cost of sales $ (2,129) Commodity Contracts $ 10,801 Cost of sales $ 2,626 Nine months ended September 27, 2020 Foreign Exchange Contracts $ (4,985) Net sales $ (6,245) Cost of sales $ 3,744 Commodity Contracts $ 640 Cost of sales $ (1,346) Description Gain or (Loss) Location of Gain or (Loss) Recognized in Derivatives not Designated as Hedging Instruments: Nine months ended October 3, 2021 Commodity Contracts $ 3,295 Cost of sales Foreign Exchange Contracts $ (906) Selling, general and administrative Nine months ended September 27, 2020 Commodity Contracts $ (252) Cost of sales Foreign Exchange Contracts $ (3,565) Selling, general and administrative Nine months ended October 3, 2021 Nine months ended September 27, 2020 Description Revenue Cost of Revenue Cost of Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 2,766 $ 497 $ — $ 2,398 The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships: Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive loss into net (loss)/income $ 2,766 $ (2,129) $ (6,245) $ 3,744 Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive loss into net (loss)/income $ — $ 2,626 $ — $ (1,346) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured on recurring basis | The following table sets forth information regarding the Company’s financial assets and financial liabilities, excluding retirement and postretirement plan assets, measured at fair value on a recurring basis: Description October 3, 2021 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ 7,530 $ — $ — $ 7,530 $ — Foreign exchange contracts $ (394) $ — $ — $ (394) $ — Non-hedge derivatives, net: Commodity contracts $ 2,861 $ — $ — $ 2,861 $ — Foreign exchange contracts $ 256 $ — $ — $ 256 $ — Description December 31, 2020 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (647) $ — $ — $ (647) $ — Foreign exchange contracts $ 602 $ — $ — $ 602 $ — Non-hedge derivatives, net: Commodity contracts $ 484 $ — $ — $ 484 $ — Foreign exchange contracts $ 115 $ — $ — $ 115 $ — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost | The components of net periodic benefit cost include the following: Three Months Ended Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Retirement Plans Service cost $ 968 $ 881 $ 2,949 $ 2,966 Interest cost 2,287 12,785 22,051 38,015 Expected return on plan assets (3,361) (12,427) (21,672) (37,234) Amortization of prior service cost 226 245 687 742 Amortization of net actuarial loss 1,600 7,136 14,849 21,270 Effect of curtailment loss — — — 31 Effect of settlement loss 21 — 547,652 661 Net periodic benefit cost $ 1,741 $ 8,620 $ 566,516 $ 26,451 Retiree Health and Life Insurance Plans Service cost $ 93 $ 89 $ 282 $ 265 Interest cost 49 84 149 249 Expected return on plan assets (111) (92) (335) (275) Amortization of prior service credit — (70) — (207) Amortization of net actuarial gain (186) (208) (563) (620) Net periodic benefit income $ (155) $ (197) $ (467) $ (588) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Leases [Abstract] | |
Balance sheet location and values of Company's lease assets and lease liabilities | The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at October 3, 2021 and December 31, 2020: Classification Balance Sheet Location October 3, 2021 December 31, 2020 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 269,855 $ 296,020 Finance lease assets Other Assets 47,154 36,267 Total lease assets $ 317,009 $ 332,287 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 44,588 $ 52,138 Current finance lease liabilities Notes payable and current portion of debt 6,236 4,663 Total current lease liabilities $ 50,824 $ 56,801 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 236,590 $ 262,048 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 45,101 33,280 Total noncurrent lease liabilities $ 281,691 $ 295,328 Total lease liabilities $ 332,515 $ 352,129 |
Components of Company's total lease costs and other lease related information | The following table sets forth the components of the Company's total lease cost for the three- and nine- month periods ended October 3, 2021 and September 27, 2020: Three Months Ended Nine Months Ended Lease Cost October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Operating lease cost (a) $ 11,623 $ 18,192 $ 36,720 $ 46,903 Finance lease cost: Amortization of lease asset (a) 1,476 1,061 4,133 5,999 Interest on lease liabilities (b) 367 258 997 721 Variable lease cost (a) (c) 6,796 7,455 19,569 29,316 Total lease cost $ 20,262 $ 26,966 $ 61,419 $ 82,939 (a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively. (b) Included in interest expense. (c) Also includes short term lease costs, which are deemed immaterial . |
Schedule of Weighted Average Remaining Lease Terms, Discounts Rates and Other Lease Information | The following table sets forth certain lease-related information for the nine months ended October 3, 2021 and September 27, 2020: Nine Months Ended October 3, 2021 September 27, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 38,757 $ 43,858 Operating cash flows used by finance leases $ 997 $ 721 Financing cash flows used by finance leases $ 3,375 $ 6,440 Noncash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities $ 12,230 $ 84,578 Leased assets obtained in exchange for new finance lease liabilities $ 7,071 $ 19,122 Modification to leased assets for increase/(decrease) in operating lease liabilities $ 12,059 $ (3,977) Modification to leased assets for increase in finance lease liabilities $ 9,586 $ 19,194 Termination reclasses to decrease operating lease assets $ (4,971) $ (4,232) Termination reclasses to decrease operating lease liabilities $ (5,278) $ (4,611) Termination reclasses to decrease finance lease assets $ (33) $ (19,994) Termination reclasses to decrease finance lease liabilities $ (40) $ (20,121) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Receivables, contracts assets and liabilities from contracts with customers | The following tables set forth the effects of contract assets and liabilities from contracts with customers. Contract assets and liabilities are reported in "Other receivables" and "Accrued expenses and other," respectively, on the Company's Condensed Consolidated Balance Sheets. October 3, 2021 December 31, 2020 Contract Assets $ 49,377 $ 48,390 Contract Liabilities $ (19,148) $ (16,687) Significant changes in the contract assets and liabilities balances during the nine months ended October 3, 2021 and the year ended December 31, 2020 were as follows: October 3, 2021 December 31, 2020 Contract Contract Contract Contract Beginning Balance $ 48,390 $ (16,687) $ 56,364 $ (17,047) Revenue deferred or rebates accrued — (28,142) — (32,512) Recognized as revenue 5,110 9,189 Rebates paid to customers — 20,571 — 23,683 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 49,377 — 48,390 — Transferred to receivables from contract assets recognized at the beginning of the period (48,390) — (56,364) — Ending Balance $ 49,377 $ (19,148) $ 48,390 $ (16,687) |
Disaggregation of revenue | The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended October 3, 2021 and September 27, 2020. The tables also include a reconciliation of disaggregated revenue with reportable segments. Three months ended October 3, 2021 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 408,295 $ 370,659 $ 145,029 $ 923,983 Europe 109,566 99,573 24,033 233,172 Canada 31,612 24,187 — 55,799 Asia 20,728 81,097 393 102,218 Other 28,768 59,714 11,539 100,021 Total $ 598,969 $ 635,230 $ 180,994 $ 1,415,193 Three months ended September 27, 2020 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 387,658 $ 293,968 $ 166,878 $ 848,504 Europe 96,698 78,780 100,418 275,896 Canada 22,131 17,749 — 39,880 Asia 19,710 61,463 147 81,320 Other 20,011 38,409 8,294 66,714 Total $ 546,208 $ 490,369 $ 275,737 $ 1,312,314 The following tables set forth information about revenue disaggregated by primary geographic regions for the nine-month periods ended October 3, 2021 and September 27, 2020. The tables also include a reconciliation of disaggregated revenue with reportable segments. Nine months ended October 3, 2021 Consumer Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 1,219,666 $ 1,042,249 $ 461,996 $ 2,723,911 Europe 334,995 300,495 67,371 702,861 Canada 87,948 69,218 — 157,166 Asia 60,256 232,657 914 293,827 Other 76,660 164,540 32,286 273,486 Total $ 1,779,525 $ 1,809,159 $ 562,567 $ 4,151,251 Nine months ended September 27, 2020 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 1,194,067 $ 863,514 $ 470,583 $ 2,528,164 Europe 276,848 237,599 261,458 775,905 Canada 74,708 64,322 — 139,030 Asia 53,993 170,046 535 224,574 Other 60,327 112,405 20,690 193,422 Total $ 1,659,943 $ 1,447,886 $ 753,266 $ 3,861,095 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Segment Reporting [Abstract] | |
Segment financial information | SEGMENT FINANCIAL INFORMATION Three Months Ended Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Net sales: Consumer Packaging $ 598,969 $ 546,208 $ 1,779,525 $ 1,659,943 Industrial Paper Packaging 635,230 490,369 1,809,159 1,447,886 All Other 180,994 275,737 562,567 753,266 Consolidated $ 1,415,193 $ 1,312,314 $ 4,151,251 $ 3,861,095 Intersegment sales: Consumer Packaging $ 1,608 $ 919 $ 4,460 $ 3,179 Industrial Paper Packaging 27,975 24,528 82,571 73,538 All Other 2,318 1,814 7,483 5,970 Consolidated $ 31,901 $ 27,261 $ 94,514 $ 82,687 Operating profit: Segment operating profit: Consumer Packaging $ 60,918 $ 64,370 $ 196,341 $ 212,575 Industrial Paper Packaging 53,343 41,035 161,414 133,871 All Other 8,169 25,136 32,952 54,563 Restructuring/Asset impairment charges (3,488) (24,149) (8,889) (59,633) Other non-base income/(charges), net 7,570 352 294 (802) Consolidated $ 126,512 $ 106,744 $ 382,112 $ 340,574 |
Basis of Interim Presentation (
Basis of Interim Presentation (Details) | 9 Months Ended |
Oct. 03, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments (segment) | 2 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) | Sep. 30, 2021USD ($) | Aug. 03, 2021USD ($) | Apr. 05, 2021USD ($) | Apr. 04, 2021USD ($)employeefacility | Mar. 08, 2021USD ($) | Nov. 30, 2020USD ($) | Oct. 03, 2021USD ($) | Jul. 04, 2021USD ($) | Apr. 04, 2021USD ($)employeefacility | Sep. 27, 2020USD ($) | Oct. 03, 2021USD ($) | Sep. 27, 2020USD ($) |
Business Acquisition [Line Items] | ||||||||||||
Measurement period adjustments | $ 0 | $ 0 | $ 1,512,000 | |||||||||
Proceeds from the sale of businesses, net | $ 91,569,000 | $ 0 | ||||||||||
Gain/(Loss) on divestiture of businesses | 2,849,000 | $ 0 | (2,667,000) | 0 | ||||||||
Acquisition and divestiture-related costs | 1,015,000 | $ 913,000 | 12,503,000 | $ 2,941,000 | ||||||||
Sold | U.S. Display and Packaging | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Consideration for disposal of business held for sale | $ 80,000,000 | $ 120,000,000 | $ 80,000,000 | |||||||||
Approximate number of employees (employee) | employee | 450 | 450 | ||||||||||
Number of manufacturing and fulfillment facilities | facility | 8 | 8 | ||||||||||
Number of sales and design centers | facility | 4 | 4 | ||||||||||
Proceeds from the sale of businesses, net | $ 79,704,000 | $ 81,675,000 | 1,971,000 | |||||||||
Gain/(Loss) on divestiture of businesses | $ (5,516,000) | |||||||||||
Disposal group, including discontinued operation, consideration, liabilities settled | 786,000 | 786,000 | ||||||||||
Gain (loss) on the sale of business | $ (2,759,000) | 2,757,000 | (2,759,000) | |||||||||
Sold | Wilson Thermoforming | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Proceeds from the sale of businesses, net | $ 3,528,000 | |||||||||||
Gain (loss) on the sale of business | $ 92,000 | |||||||||||
Sold | Sonoco Poland Packaging Services Sp. z.o.o. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Proceeds from the sale of businesses, net | 105,913,000 | 6,366,000 | ||||||||||
Funding of escrow funds | $ 4,600,000 | 600,000 | 600,000 | |||||||||
Release of escrow funds | 4,000,000 | |||||||||||
Working capital settlement | 2,366,000 | |||||||||||
Consumer Packaging | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Measurement period adjustments | 0 | $ 0 | $ 1,512,000 | 1,512,000 | ||||||||
Allied Packaging | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash consideration paid | $ 802,000 | |||||||||||
TuboTec | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash consideration paid | $ 841,000 | |||||||||||
Can Packaging | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Additional cash payment | 1,512,000 | |||||||||||
Goodwill expected to be deductible for income tax purposes | $ 0 | $ 0 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Divestitures (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 05, 2021 | Apr. 04, 2021 | Oct. 03, 2021 | Oct. 03, 2021 | Sep. 27, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Proceeds | $ 91,569 | $ 0 | ||||
Sold | U.S. Display and Packaging | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Trade accounts receivable | $ 26,342 | |||||
Inventories | 8,434 | |||||
Property, plant and equipment, net | 9,551 | |||||
Right of use asset - operating leases | 11,627 | |||||
Goodwill | 53,039 | |||||
Trade accounts payable | (10,735) | |||||
Accrued expenses | (2,197) | |||||
Operating lease liabilities | (12,343) | |||||
Other net tangible assets | 716 | |||||
Net asset disposal | 84,434 | |||||
Net Proceeds | $ 79,704 | 81,675 | $ 1,971 | |||
Loss/(Gain) on sale of business | $ 2,759 | $ (2,757) | $ 2,759 | |||
Sold | Wilson Thermoforming | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Trade accounts receivable | $ 0 | |||||
Inventories | 1,805 | |||||
Property, plant and equipment, net | 550 | |||||
Right of use asset - operating leases | 147 | |||||
Goodwill | 1,058 | |||||
Trade accounts payable | 0 | |||||
Accrued expenses | (54) | |||||
Operating lease liabilities | (70) | |||||
Other net tangible assets | 0 | |||||
Net asset disposal | 3,436 | |||||
Net Proceeds | 3,528 | |||||
Loss/(Gain) on sale of business | $ (92) |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Sep. 10, 2021 | Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 |
Numerator: | |||||
Net income/(loss) attributable to Sonoco | $ 111,140 | $ 83,449 | $ (150,634) | $ 219,105 | |
Denominator: | |||||
Basic (in shares) | 98,955 | 100,974 | 100,039 | 100,935 | |
Dilutive effect of stock-based compensation (in shares) | 470 | 271 | 0 | 220 | |
Diluted (in shares) | 99,425 | 101,245 | 100,039 | 101,155 | |
Net income/(loss) attributable to Sonoco per common share: | |||||
Basic (in usd per share) | $ 1.12 | $ 0.83 | $ (1.51) | $ 2.17 | |
Diluted (in usd per share) | 1.12 | 0.82 | (1.51) | 2.17 | |
Cash dividends (in usd per share) | $ 0.45 | $ 0.45 | $ 0.43 | $ 1.35 | $ 1.29 |
Shareholders' Equity - Antidilu
Shareholders' Equity - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock appreciation rights (in shares) | 469 | |||
SARs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock appreciation rights (in shares) | 0 | 752 | 142 | 844 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) $ / shares in Units, shares in Thousands, $ in Thousands | Dec. 10, 2021$ / shares | Oct. 19, 2021$ / shares | Sep. 10, 2021$ / shares | Jul. 26, 2021USD ($)$ / sharesshares | Jul. 21, 2021USD ($)position$ / sharesshares | May 10, 2021USD ($)$ / sharesshares | May 06, 2021USD ($)shares | Oct. 03, 2021USD ($)$ / shares | Sep. 27, 2020$ / shares | Oct. 03, 2021USD ($)$ / sharesshares | Sep. 27, 2020USD ($)$ / sharesshares | Apr. 20, 2021USD ($) |
Class of Stock [Line Items] | ||||||||||||
Number of shares authorized for repurchase | $ | $ 350,000 | |||||||||||
Number of shares available for repurchase (in shares) | $ | $ 196,385 | $ 196,385 | ||||||||||
Up-front payment to repurchase shares | $ | $ 3,615 | $ 159,654 | $ 7,335 | |||||||||
Number of shares repurchased (in shares) | shares | 54 | |||||||||||
Dividend declared and payable (in usd per share) | $ / shares | $ 0.45 | |||||||||||
Dividends paid (in usd per share) | $ / shares | $ 0.45 | $ 0.45 | $ 0.43 | $ 1.35 | $ 1.29 | |||||||
Subsequent Event | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Dividend declared and payable (in usd per share) | $ / shares | $ 0.45 | |||||||||||
Dividends paid (in usd per share) | $ / shares | $ 0.45 | |||||||||||
Tax Withholding Obligations | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of shares repurchased (in shares) | shares | 100 | 130 | ||||||||||
Cost of shares repurchased | $ | $ 6,039 | $ 7,335 | ||||||||||
Accelerated Share Repurchase Program | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Up-front payment to repurchase shares | $ | $ 150,000 | |||||||||||
Number of shares repurchased (in shares) | shares | 337 | 168 | 1,751 | |||||||||
Percentage of expected shares to be repurchased (percent) | 80.00% | |||||||||||
Average price (in usd per share) | $ / shares | $ 68.5 | |||||||||||
Number of tranches | position | 2 | |||||||||||
Effective settlement price (in usd per share) | $ / shares | $ 66.45 | $ 66.52 | ||||||||||
Settlement of notional transactional value | $ | $ 100,000 | $ 50,000 |
Restructuring and Asset Impai_3
Restructuring and Asset Impairment - Restructuring and Restructuring-related Asset Impairment Expenses by Type Incurred and by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | $ 3,204 | $ 24,149 | $ 4,048 | $ 59,633 |
Other asset impairments | 284 | 0 | 4,841 | 0 |
Restructuring/Asset Impairment Charges | 3,488 | 24,149 | 8,889 | 59,633 |
Consumer Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other asset impairments | 2,442 | |||
All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other asset impairments | 2,399 | |||
Operating Segments | Consumer Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 2,450 | 16,498 | 3,708 | 20,707 |
Operating Segments | Industrial Paper Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | (1,888) | 6,990 | (4,827) | 30,189 |
Operating Segments | All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 555 | 762 | 3,075 | 6,727 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 2,087 | (101) | 2,092 | 2,010 |
Severance and Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 3,726 | 4,607 | 7,592 | 29,866 |
Asset Impairments/(Gains from Disposal of Assets) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | (1,722) | 16,605 | (8,207) | 25,364 |
Other Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | $ 1,200 | $ 2,937 | $ 4,663 | $ 4,403 |
Restructuring and Asset Impai_4
Restructuring and Asset Impairment - Restructuring Accrual Activity (Details) $ in Thousands | 9 Months Ended |
Oct. 03, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2020 | $ 16,466 |
2021 charges/(gains) | 4,048 |
Cash receipts/(payments) | (6,407) |
Asset write downs/disposals | (4,879) |
Foreign currency translation | (293) |
Liability at October 3, 2021 | 8,935 |
Severance and Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2020 | 15,955 |
2021 charges/(gains) | 7,592 |
Cash receipts/(payments) | (14,790) |
Asset write downs/disposals | 0 |
Foreign currency translation | (294) |
Liability at October 3, 2021 | 8,463 |
Asset Impairments/(Gains from Disposal of Assets) | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2020 | 0 |
2021 charges/(gains) | (8,207) |
Cash receipts/(payments) | 13,442 |
Asset write downs/disposals | (5,235) |
Foreign currency translation | 0 |
Liability at October 3, 2021 | 0 |
Other Costs | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2020 | 511 |
2021 charges/(gains) | 4,663 |
Cash receipts/(payments) | (5,059) |
Asset write downs/disposals | 356 |
Foreign currency translation | 1 |
Liability at October 3, 2021 | $ 472 |
Restructuring and Asset Impai_5
Restructuring and Asset Impairment - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021USD ($)position | Sep. 27, 2020USD ($) | Oct. 03, 2021USD ($)position | Sep. 27, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Future additional charges expected to be recognized | $ 1,800 | $ 1,800 | ||
Other asset impairments | $ 284 | $ 0 | 4,841 | $ 0 |
Consumer Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other asset impairments | 2,442 | |||
All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other asset impairments | $ 2,399 | |||
Organizational effectiveness efforts | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of eliminated positions (position) | position | 475 | 475 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | $ 1,822,433 | $ 1,807,704 | $ 1,910,528 | [1] | $ 1,815,705 |
Other comprehensive (loss)/income | (35,118) | 32,212 | 377,507 | (22,665) | |
Ending Balance | 1,860,732 | 1,881,333 | 1,860,732 | 1,881,333 | |
Foreign Currency Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (194,024) | (241,994) | |||
Other comprehensive (loss)/income before reclassifications | (57,261) | (35,447) | |||
Amounts reclassified from accumulated other comprehensive loss net of tax | 0 | ||||
Other comprehensive (loss)/income | (57,261) | (35,447) | |||
Ending Balance | (251,285) | (277,441) | (251,285) | (277,441) | |
Foreign Currency Items | Fixed Assets | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss net of tax | 0 | ||||
Foreign Currency Items | Net Income | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss net of tax | 0 | ||||
Defined Benefit Pension Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (562,747) | (574,413) | |||
Other comprehensive (loss)/income before reclassifications | 11,302 | (885) | |||
Amounts reclassified from accumulated other comprehensive loss net of tax | 418,521 | ||||
Other comprehensive (loss)/income | 429,823 | 15,476 | |||
Ending Balance | (132,924) | (558,937) | (132,924) | (558,937) | |
Defined Benefit Pension Items | Fixed Assets | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss net of tax | 0 | ||||
Defined Benefit Pension Items | Net Income | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss net of tax | 16,361 | ||||
Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (71) | (396) | |||
Other comprehensive (loss)/income before reclassifications | 7,804 | (3,362) | |||
Amounts reclassified from accumulated other comprehensive loss net of tax | (2,403) | ||||
Other comprehensive (loss)/income | 5,370 | (440) | |||
Ending Balance | 5,299 | (836) | 5,299 | (836) | |
Cash Flow Hedges | Fixed Assets | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss net of tax | (31) | ||||
Cash Flow Hedges | Net Income | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss net of tax | 2,922 | ||||
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (344,456) | (869,453) | (756,842) | (816,803) | |
Other comprehensive (loss)/income before reclassifications | (38,155) | (39,694) | |||
Amounts reclassified from accumulated other comprehensive loss net of tax | 416,118 | ||||
Other comprehensive (loss)/income | 377,932 | (20,411) | |||
Ending Balance | $ (378,910) | $ (837,214) | (378,910) | (837,214) | |
Accumulated Other Comprehensive Loss | Fixed Assets | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss net of tax | $ (31) | ||||
Accumulated Other Comprehensive Loss | Net Income | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss net of tax | $ 19,283 | ||||
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 03, 2021 | Jul. 04, 2021 | Apr. 04, 2021 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net sales | $ 1,415,193 | $ 1,312,314 | $ 4,151,251 | $ 3,861,095 | ||||
Cost of sales | (1,157,462) | (1,055,304) | (3,352,966) | (3,089,512) | ||||
Income/(Loss) before income taxes | 111,768 | 80,710 | (247,634) | 264,631 | ||||
(Benefit from)/Provision for income taxes | (2,564) | 649 | 91,542 | (49,337) | ||||
Net income/(loss) | 111,555 | $ (334,239) | $ 72,293 | 83,298 | $ 54,990 | $ 80,236 | (150,391) | 218,524 |
Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net sales | 937 | (1,723) | 2,766 | 0 | ||||
Cost of sales | 1,340 | 75 | 497 | 2,398 | ||||
Net income/(loss) | 391 | (6,548) | (416,118) | (19,283) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Income/(Loss) before income taxes | 2,277 | (1,648) | 3,263 | (3,847) | ||||
(Benefit from)/Provision for income taxes | (607) | 403 | (860) | 925 | ||||
Net income/(loss) | 1,670 | (1,245) | 2,403 | (2,922) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Pension Items | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Income/(Loss) before income taxes | (1,661) | (7,103) | (562,625) | (21,877) | ||||
(Benefit from)/Provision for income taxes | 382 | 1,800 | 144,104 | 5,516 | ||||
Net income/(loss) | (1,279) | (5,303) | (418,521) | (16,361) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Effect of curtailment loss | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Non-operating pension costs | 0 | 0 | 0 | (31) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Effect of settlement loss | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Non-operating pension costs | (21) | 0 | (547,652) | (661) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of defined benefit pension items | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Non-operating pension costs | (1,640) | (7,103) | (14,973) | (21,185) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Foreign exchange contracts | Cash Flow Hedges | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net sales | 937 | (1,723) | 2,766 | (6,245) | ||||
Cost of sales | (711) | 867 | (2,129) | 3,744 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Commodity contracts | Cash Flow Hedges | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net sales | 0 | 0 | 0 | 0 | ||||
Cost of sales | $ 2,051 | $ (792) | $ 2,626 | $ (1,346) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Before and After Tax Amounts for Comprehensive Income (Loss) Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 03, 2021 | Jul. 04, 2021 | Apr. 04, 2021 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other comprehensive income/(loss) | $ (35,118) | $ 438,823 | $ (26,198) | $ 32,212 | $ 39,110 | $ (93,987) | ||
Foreign Currency Items | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other comprehensive income/(loss) before tax | (37,077) | 24,674 | $ (57,261) | $ (27,866) | ||||
Other comprehensive income/(loss), tax | 0 | 0 | 0 | (7,581) | ||||
Other comprehensive income/(loss) | (37,077) | 24,674 | (57,261) | (35,447) | ||||
Defined benefit pension items | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other comprehensive (loss)/income before reclassifications before tax | 559 | (31) | 14,923 | (1,177) | ||||
Other comprehensive (loss)/income before reclassifications, tax | (145) | 8 | (3,621) | 292 | ||||
Other comprehensive (loss)/income before reclassifications, net of tax | 414 | (23) | 11,302 | (885) | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 562,625 | 21,877 | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss), tax | (144,104) | (5,516) | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 418,521 | 16,361 | ||||||
Other comprehensive income/(loss) before tax | 2,220 | 7,072 | 577,548 | 20,700 | ||||
Other comprehensive income/(loss), tax | (527) | (1,792) | (147,725) | (5,224) | ||||
Other comprehensive income/(loss) | 1,693 | 5,280 | 429,823 | 15,476 | ||||
Defined benefit pension items | Net Income | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 1,661 | 7,103 | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss), tax | (382) | (1,800) | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 1,279 | 5,303 | ||||||
Cash Flow Hedges | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other comprehensive (loss)/income before reclassifications before tax | 3,525 | 1,376 | 10,536 | (4,345) | ||||
Other comprehensive (loss)/income before reclassifications, tax | (940) | (336) | (2,732) | 983 | ||||
Other comprehensive (loss)/income before reclassifications, net of tax | 2,585 | 1,040 | 7,804 | (3,362) | ||||
Other comprehensive income/(loss) before tax | 1,268 | 3,024 | 7,231 | (498) | ||||
Other comprehensive income/(loss), tax | (338) | (739) | (1,861) | 58 | ||||
Other comprehensive income/(loss) | 930 | 2,285 | 5,370 | (440) | ||||
Cash Flow Hedges | Fixed Assets | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 20 | 0 | (42) | 0 | ||||
Amounts reclassified from accumulated other comprehensive income/(loss), tax | (5) | 0 | 11 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 15 | 0 | (31) | 0 | ||||
Cash Flow Hedges | Net Income | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | (2,277) | 1,648 | (3,263) | 3,847 | ||||
Amounts reclassified from accumulated other comprehensive income/(loss), tax | 607 | (403) | 860 | (925) | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | (1,670) | 1,245 | (2,403) | 2,922 | ||||
Accumulated Other Comprehensive Loss | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other comprehensive income/(loss) before tax | (33,589) | 34,770 | 527,518 | (7,664) | ||||
Other comprehensive income/(loss), tax | (865) | (2,531) | (149,586) | (12,747) | ||||
Other comprehensive income/(loss) | $ (34,454) | $ 438,064 | $ (25,678) | $ 32,239 | $ 39,700 | $ (92,350) | $ 377,932 | $ (20,411) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Goodwill by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 03, 2021 | Jul. 04, 2021 | Apr. 04, 2021 | Oct. 03, 2021 | |||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | $ 1,333,400 | $ 1,328,214 | $ 1,389,255 | [1] | $ 1,389,255 | [1] |
2021 Acquisitions | 0 | 917 | 0 | |||
Dispositions | (1,058) | 0 | (53,039) | |||
Foreign currency translation | (8,619) | 4,269 | (9,514) | |||
Measurement period adjustments | 0 | 0 | 1,512 | |||
Goodwill, ending balance | 1,323,723 | 1,333,400 | 1,328,214 | 1,323,723 | ||
Goodwill at December 31, 2020, as reported | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 1,389,255 | 1,389,255 | ||||
Adjustment to correct goodwill by segment | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 0 | 0 | ||||
Consumer Packaging | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 580,691 | 578,220 | 581,244 | 581,244 | ||
2021 Acquisitions | 0 | 0 | 0 | |||
Dispositions | (1,058) | 0 | 0 | |||
Foreign currency translation | (4,744) | 2,471 | (4,536) | |||
Measurement period adjustments | 0 | 0 | 1,512 | 1,512 | ||
Goodwill, ending balance | 574,889 | 580,691 | 578,220 | 574,889 | ||
Consumer Packaging | Goodwill at December 31, 2020, as reported | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 592,310 | 592,310 | ||||
Consumer Packaging | Adjustment to correct goodwill by segment | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | (11,066) | (11,066) | ||||
Industrial Paper Packaging | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 367,274 | 365,029 | 369,315 | 369,315 | ||
2021 Acquisitions | 0 | 917 | 0 | |||
Dispositions | 0 | 0 | 0 | |||
Foreign currency translation | (2,911) | 1,328 | (4,286) | |||
Measurement period adjustments | 0 | 0 | 0 | |||
Goodwill, ending balance | 364,363 | 367,274 | 365,029 | 364,363 | ||
Industrial Paper Packaging | Goodwill at December 31, 2020, as reported | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 317,958 | 317,958 | ||||
Industrial Paper Packaging | Adjustment to correct goodwill by segment | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 51,357 | 51,357 | ||||
All Other | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 385,435 | 384,965 | 438,696 | 438,696 | ||
2021 Acquisitions | 0 | 0 | 0 | |||
Dispositions | 0 | 0 | (53,039) | |||
Foreign currency translation | (964) | 470 | (692) | |||
Measurement period adjustments | 0 | 0 | 0 | |||
Goodwill, ending balance | $ 384,471 | $ 385,435 | 384,965 | 384,471 | ||
All Other | Goodwill at December 31, 2020, as reported | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 478,987 | 478,987 | ||||
All Other | Adjustment to correct goodwill by segment | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | $ (40,291) | $ (40,291) | ||||
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | Jul. 04, 2021 | Apr. 04, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | [1] | |
Goodwill [Line Items] | |||||||||
Goodwill, impairment loss | $ 0 | ||||||||
Goodwill | $ 1,323,723,000 | $ 1,323,723,000 | $ 1,333,400,000 | $ 1,328,214,000 | $ 1,389,255,000 | ||||
Indefinite-lived intangible assets | 0 | 0 | |||||||
Aggregate amortization expense | 12,257,000 | $ 12,993,000 | 37,117,000 | $ 39,624,000 | |||||
Amortization expense on other intangible assets in 2021 | 49,500,000 | 49,500,000 | |||||||
Amortization expense on other intangible assets in 2022 | 45,600,000 | 45,600,000 | |||||||
Amortization expense on other intangible assets in 2023 | 41,200,000 | 41,200,000 | |||||||
Amortization expense on other intangible assets in 2024 | 34,100,000 | 34,100,000 | |||||||
Amortization expense on other intangible assets in 2025 | 24,700,000 | $ 24,700,000 | |||||||
Other | Minimum | |||||||||
Goodwill [Line Items] | |||||||||
Useful lives of intangible asset | 3 years | ||||||||
Other | Maximum | |||||||||
Goodwill [Line Items] | |||||||||
Useful lives of intangible asset | 40 years | ||||||||
Plastics - Healthcare | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill | $ 64,425,000 | $ 64,425,000 | |||||||
Excess of fair value of reporting unit over carrying value (percent) | 13.30% | 13.30% | |||||||
Plastics - Healthcare | Discount Rate | |||||||||
Goodwill [Line Items] | |||||||||
Discount rate (percent) | 8.30% | 8.30% | |||||||
Protexic | |||||||||
Goodwill [Line Items] | |||||||||
Projected decrease in operating profit for estimated fair value to fall below carrying value (percent) | (13.00%) | ||||||||
Protexic | Discount Rate | |||||||||
Goodwill [Line Items] | |||||||||
Change necessary in order for estimated fair value to fall below carrying value (percent) | 9.30% | ||||||||
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 | |
Other Intangible Assets, gross: | |||
Total Other Intangible Assets, gross | $ 672,186 | $ 709,487 | |
Total Accumulated Amortization | (390,653) | (387,553) | |
Other Intangible Assets, net | 281,533 | 321,934 | [1] |
Patents | |||
Other Intangible Assets, gross: | |||
Total Other Intangible Assets, gross | 29,314 | 29,325 | |
Total Accumulated Amortization | (15,843) | (14,511) | |
Customer lists | |||
Other Intangible Assets, gross: | |||
Total Other Intangible Assets, gross | 585,108 | 622,430 | |
Total Accumulated Amortization | (338,039) | (339,159) | |
Trade names | |||
Other Intangible Assets, gross: | |||
Total Other Intangible Assets, gross | 32,086 | 32,088 | |
Total Accumulated Amortization | (13,658) | (12,156) | |
Proprietary technology | |||
Other Intangible Assets, gross: | |||
Total Other Intangible Assets, gross | 22,870 | 22,813 | |
Total Accumulated Amortization | (21,130) | (19,833) | |
Other | |||
Other Intangible Assets, gross: | |||
Total Other Intangible Assets, gross | 2,808 | 2,831 | |
Total Accumulated Amortization | $ (1,983) | $ (1,894) | |
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Oct. 03, 2021 | Aug. 01, 2021 | May 25, 2021 | Apr. 28, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | |||||
Finance lease obligations | $ 51,336 | $ 37,943 | |||
Total debt | 1,468,506 | 1,700,224 | |||
Less current portion and short-term notes | 275,799 | 455,784 | |||
Long-term debt | 1,192,707 | 1,244,440 | |||
Commercial paper | |||||
Line of Credit Facility [Line Items] | |||||
Debt | $ 202,000 | 0 | |||
1.0% Euro loan due May 2021 | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate (percent) | 1.00% | 1.00% | |||
Debt | $ 0 | $ 177,780 | 183,662 | ||
9.2% debentures due August 2021 | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate (percent) | 9.20% | ||||
Debt | 0 | $ 4,321 | 4,320 | ||
4.375% debentures due November 2021 | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate (percent) | 4.375% | ||||
Debt | $ 0 | $ 250,000 | 249,741 | ||
3.125% debentures due May 2030 | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate (percent) | 3.125% | ||||
Debt | $ 595,193 | 594,687 | |||
5.75% debentures due November 2040 | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate (percent) | 5.75% | 5.75% | |||
Debt | $ 536,173 | $ 600,000 | 599,279 | ||
Other foreign denominated debt | |||||
Line of Credit Facility [Line Items] | |||||
Debt | 69,625 | 15,522 | |||
Other notes | |||||
Line of Credit Facility [Line Items] | |||||
Debt | $ 14,179 | $ 15,070 |
Debt - Additional Information (
Debt - Additional Information (Details) $ in Thousands | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | May 25, 2021USD ($) | May 21, 2021USD ($) | May 13, 2021USD ($) | Oct. 03, 2021USD ($) | Sep. 27, 2020USD ($) | Jul. 04, 2021 | Oct. 03, 2021USD ($) | Sep. 27, 2020USD ($) | Aug. 01, 2021USD ($) | May 25, 2021EUR (€) | Apr. 28, 2021USD ($) | Apr. 07, 2021EUR (€) | Dec. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | ||||||||||||||||
Loss from the early extinguishment of debt | $ 0 | $ 0 | $ (20,184) | $ 0 | ||||||||||||
Expected debt maturities through December 2021 | 275,799 | 275,799 | ||||||||||||||
Cash and cash equivalents | 160,012 | 160,012 | $ 564,848 | [1] | ||||||||||||
LIBOR | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Basis points (percent) | 1.25% | |||||||||||||||
Revolving Credit Facility | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Debt term | 5 years | |||||||||||||||
Maximum borrowing capacity | $ 750,000 | 750,000 | 750,000 | |||||||||||||
Committed availability under credit facilities | 548,000 | 548,000 | ||||||||||||||
Proceeds from lines of credit | $ 50,000 | |||||||||||||||
Repayments of credit facility | $ 50,000 | |||||||||||||||
Cash and cash equivalents | 160,012 | 160,012 | ||||||||||||||
Commercial Paper | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Committed availability under credit facilities | $ 500,000 | |||||||||||||||
Reverse Treasury Lock Contract | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Funding target | $ 100,000 | |||||||||||||||
Gain (loss) on derivative | $ (1,356) | |||||||||||||||
Cross-currency swap | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Funding target | € | € 150,000,000 | |||||||||||||||
Gain (loss) on derivative | $ 4,387 | |||||||||||||||
5.75% debentures due November 2040 | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Amount offered to be repurchased | 300,000 | |||||||||||||||
Debt | $ 536,173 | $ 536,173 | $ 600,000 | 599,279 | ||||||||||||
Interest rate (percent) | 5.75% | 5.75% | 5.75% | |||||||||||||
Portion of outstanding debt repurchased (percent) | 10.53% | 10.53% | ||||||||||||||
Cash cost of debt repurchased | $ 81,961 | |||||||||||||||
Non-cash write-offs, net | 73 | |||||||||||||||
Loss from the early extinguishment of debt | $ 20,184 | |||||||||||||||
1.0% Euro loan due May 2021 | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Debt | $ 177,780 | $ 0 | $ 0 | 183,662 | ||||||||||||
Interest rate (percent) | 1.00% | 1.00% | 1.00% | 1.00% | ||||||||||||
Debt principal | € | € 150,000,000 | |||||||||||||||
4.375% debentures due November 2021 | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Debt | $ 0 | $ 0 | $ 250,000 | 249,741 | ||||||||||||
Interest rate (percent) | 4.375% | |||||||||||||||
9.2% debentures due August 2021 | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Debt | $ 0 | $ 0 | $ 4,321 | $ 4,320 | ||||||||||||
Interest rate (percent) | 9.20% | |||||||||||||||
[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. |
Debt - Schedule of Debt Repurch
Debt - Schedule of Debt Repurchased (Details) - USD ($) $ in Thousands | May 25, 2021 | Oct. 03, 2021 | Sep. 27, 2020 | Apr. 28, 2021 |
Line of Credit Facility [Line Items] | ||||
Premium and Other Amounts Paid | $ 20,111 | $ 0 | ||
5.75% debentures due November 2040 | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate (percent) | 5.75% | 5.75% | ||
Principal Amount Tendered | $ 63,206 | |||
Premium and Other Amounts Paid | 18,755 | |||
Total Cash Paid | $ 81,961 |
Financial Instruments and Der_3
Financial Instruments and Derivatives - Carrying Amount and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net of current portion, fair value | $ 1,192,707 | $ 1,244,440 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net of current portion, fair value | $ 1,428,316 | $ 1,538,132 |
Financial Instruments and Der_4
Financial Instruments and Derivatives - Additional Information (Details) MMBTU in Millions | May 21, 2021USD ($) | May 13, 2021USD ($) | Mar. 31, 2020USD ($) | Oct. 03, 2021USD ($)MMBTUT | Sep. 27, 2020USD ($) | May 25, 2021EUR (€) | Apr. 28, 2021USD ($) | Apr. 07, 2021EUR (€) | Dec. 31, 2020USD ($) | Jan. 31, 2020USD ($) |
Derivative [Line Items] | ||||||||||
Proceeds from foreign exchange forward contracts and interest rate swaps | $ 4,387,000 | $ 14,480,000 | ||||||||
Total fair value of other derivatives not designated as hedging instruments | $ 3,117,000 | $ 599,000 | ||||||||
1.0% Euro loan due May 2021 | ||||||||||
Derivative [Line Items] | ||||||||||
Interest rate (percent) | 1.00% | 1.00% | ||||||||
Debt principal | € | € 150,000,000 | |||||||||
5.75% debentures due November 2040 | ||||||||||
Derivative [Line Items] | ||||||||||
Interest rate (percent) | 5.75% | 5.75% | ||||||||
Amount offered to be repurchased | $ 300,000,000 | |||||||||
Cash Flow Hedging | Derivatives Designated as Hedging Instruments | ||||||||||
Derivative [Line Items] | ||||||||||
Fair value of commodity cash flow hedges, gain (loss) | $ 7,530,000 | (647,000) | ||||||||
Commodity gain (loss) expected to be reclassified to the income statement during the next 12 months | 4,690,000 | |||||||||
Fair value of foreign currency cash flow hedges, gain (loss) | 131,000 | 555,000 | ||||||||
Foreign currency gain (loss) expected to be reclassified to the income statement during the next 12 months | $ 131,000 | |||||||||
Natural Gas Swaps | ||||||||||
Derivative [Line Items] | ||||||||||
Approximate amount of commodity covered by swap contracts outstanding (in MMBTUs) | MMBTU | 4.5 | |||||||||
Anticipated usage percentage covered by a swap contract for the current fiscal year (percent) | 66.00% | |||||||||
Anticipated usage percentage covered by a swap contract for the next fiscal year (percent) | 42.00% | |||||||||
Natural Gas Swaps | Derivatives Designated as Hedging Instruments | ||||||||||
Derivative [Line Items] | ||||||||||
Approximate amount of commodity covered by swap contracts outstanding (in MMBTUs) | MMBTU | 1.6 | |||||||||
Anticipated usage percentage covered by a swap contract for the next fiscal year (percent) | 21.00% | |||||||||
Natural Gas Swaps | Cash Flow Hedging | Derivatives Designated as Hedging Instruments | ||||||||||
Derivative [Line Items] | ||||||||||
Approximate amount of commodity covered by swap contracts outstanding (in MMBTUs) | MMBTU | 2.9 | |||||||||
Anticipated usage percentage covered by a swap contract for the current fiscal year (percent) | 66.00% | |||||||||
Anticipated usage percentage covered by a swap contract for the next fiscal year (percent) | 21.00% | |||||||||
Aluminum Swaps | Cash Flow Hedging | Derivatives Designated as Hedging Instruments | ||||||||||
Derivative [Line Items] | ||||||||||
Anticipated usage percentage covered by a swap contract for the current fiscal year (percent) | 53.00% | |||||||||
Approximate amount of commodity covered by swap contracts outstanding (in tons) | T | 904 | |||||||||
Forward contracts | Cash Flow Hedging | Derivatives Designated as Hedging Instruments | ||||||||||
Derivative [Line Items] | ||||||||||
Fair value of foreign currency cash flow hedges, gain (loss) | $ (525,000) | $ 47,000 | ||||||||
Foreign currency gain (loss) expected to be reclassified to the income statement during the next 12 months | (522,000) | |||||||||
Foreign currency gain (loss) reclassified to the income statement | $ 42,000 | |||||||||
Cross-currency swap | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount | € | € 150,000,000 | |||||||||
Gain (loss) on derivative | $ 4,387,000 | |||||||||
Cross-currency swap | Net Investment Hedge | Derivatives Designated as Hedging Instruments | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount | $ 250,000,000 | |||||||||
Proceeds from foreign exchange forward contracts and interest rate swaps | $ 14,480,000 | |||||||||
Tax provision on foreign currency translation gain | $ 7,581,000 | |||||||||
Reverse Treasury Lock Contract | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount | $ 100,000,000 | |||||||||
Gain (loss) on derivative | $ (1,356,000) |
Financial Instruments and Der_5
Financial Instruments and Derivatives - Net Positions of Foreign Contracts (Details) - Oct. 03, 2021 ₺ in Thousands, € in Thousands, £ in Thousands, zł in Thousands, Kč in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | COP ($) | MXN ($) | PLN (zł) | CZK (Kč) | EUR (€) | CAD ($) | GBP (£) | TRY (₺) |
Cash Flow Hedging | Derivatives Designated as Hedging Instruments | Purchase | ||||||||
Derivative [Line Items] | ||||||||
Funding target | $ 5,000,669 | $ 84,193 | zł 21,064 | Kč 13,119 | € 12,803 | $ 3,368 | £ 1,697 | ₺ 633 |
Financial Instruments and Der_6
Financial Instruments and Derivatives - Net Positions of Other Derivatives Contract (Details) - Oct. 03, 2021 Rp in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | COP ($) | MXN ($) | CAD ($) | IDR (Rp) |
Derivatives Not Designated as Hedging Instruments | Purchase | ||||
Derivative [Line Items] | ||||
Funding target | $ 26,283,009 | $ 336,655 | $ 5,258 | Rp 30,699,411 |
Financial Instruments and Der_7
Financial Instruments and Derivatives - Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 4,690 | $ 867 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 2,840 | 0 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0 | (1,512) |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0 | (2) |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 333 | 997 |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (725) | (395) |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (2) | 0 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 484 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 2,861 | 0 |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 256 | 140 |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 0 | $ (25) |
Financial Instruments and Der_8
Financial Instruments and Derivatives - Effect of Derivative Instruments on Financial Performance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | $ (407) | $ 90 | $ 156 | $ (4,985) |
Foreign exchange contracts | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | 937 | (1,723) | 2,766 | (6,245) |
Foreign exchange contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | (711) | 867 | (2,129) | 3,744 |
Foreign exchange contracts | Selling, general and administrative | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative | (675) | 486 | (906) | (3,565) |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | 4,200 | 1,286 | 10,801 | 640 |
Commodity contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | 2,051 | (792) | 2,626 | (1,346) |
Commodity contracts | Cost of sales | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative | $ 2,861 | $ (436) | $ 3,295 | $ (252) |
Financial Instruments and Der_9
Financial Instruments and Derivatives - Reclassification of Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | $ 1,415,193 | $ 1,312,314 | $ 4,151,251 | $ 3,861,095 |
Cost of sales | (1,157,462) | (1,055,304) | (3,352,966) | (3,089,512) |
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | 937 | (1,723) | 2,766 | 0 |
Cost of sales | 1,340 | 75 | 497 | 2,398 |
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | Cash Flow Hedges | Foreign exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | 937 | (1,723) | 2,766 | (6,245) |
Cost of sales | (711) | 867 | (2,129) | 3,744 |
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | Cash Flow Hedges | Commodity contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Cost of sales | $ 2,051 | $ (792) | $ 2,626 | $ (1,346) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Recurring basis - USD ($) | Oct. 03, 2021 | Dec. 31, 2020 |
Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ 7,530,000 | $ (647,000) |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (394,000) | 602,000 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 2,861,000 | 484,000 |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 256,000 | 115,000 |
Assets measured at NAV | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Assets measured at NAV | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Assets measured at NAV | Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Assets measured at NAV | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 1 | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 1 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 1 | Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 1 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 2 | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 7,530,000 | (647,000) |
Level 2 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (394,000) | 602,000 |
Level 2 | Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 2,861,000 | 484,000 |
Level 2 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 256,000 | 115,000 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | |
Level 3 | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 3 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 3 | Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Level 3 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ 0 | $ 0 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | Sep. 30, 2021 | Oct. 31, 2021 | Oct. 03, 2021 | Jul. 04, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Contributions | $ 142,615,000 | $ 12,292,000 | |||||
Expected contributions for remainder of fiscal year | $ 6,500,000 | 6,500,000 | |||||
Effect of curtailment loss | (31,000) | ||||||
Sonoco Savings Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer matching contribution, percent of employees' gross pay (percent) | 4.00% | ||||||
Defined contribution plan, employer matching contribution (percent) | 50.00% | ||||||
Sonoco Savings Plan | Subsequent Event | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer matching contribution, percent of employees' gross pay (percent) | 6.00% | ||||||
Defined contribution plan, employer matching contribution (percent) | 100.00% | ||||||
Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement losses recognized | 21,000 | $ 0 | 547,652,000 | 661,000 | |||
Effect of curtailment loss | 0 | 0 | 0 | 31,000 | |||
Pension Plan | Sonoco Retirement Contribution | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Contributions | 22,665,000 | 22,503,000 | |||||
Expected contributions for remainder of fiscal year | 0 | 0 | |||||
Recognized expense related to the plan | $ 5,456,000 | $ 5,589,000 | 17,290,000 | 17,283,000 | |||
Pension Plan | Sonoco Pension Plan for Inactive Participants | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Contributions | $ 133,000,000 | ||||||
Non-cash settlement charges expected to be incurred next year | $ 547,291,000 | ||||||
Settlement losses recognized | $ 361,000 | $ 661,000 | |||||
Pension Plan | United States | Sonoco Retirement Contribution | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer matching contribution, percent of employees' gross pay (percent) | 4.00% | ||||||
Employer matching contribution, percent of employees' gross pay in excess of social security (percent) | 4.00% |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Effect of curtailment loss | $ (31) | |||
Retirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 968 | $ 881 | $ 2,949 | 2,966 |
Interest cost | 2,287 | 12,785 | 22,051 | 38,015 |
Expected return on plan assets | (3,361) | (12,427) | (21,672) | (37,234) |
Amortization of prior service cost | 226 | 245 | 687 | 742 |
Amortization of net actuarial loss | 1,600 | 7,136 | 14,849 | 21,270 |
Effect of curtailment loss | 0 | 0 | 0 | 31 |
Effect of settlement loss | 21 | 0 | 547,652 | 661 |
Net periodic benefit cost | 1,741 | 8,620 | 566,516 | 26,451 |
Retiree Health and Life Insurance Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 93 | 89 | 282 | 265 |
Interest cost | 49 | 84 | 149 | 249 |
Expected return on plan assets | (111) | (92) | (335) | (275) |
Amortization of prior service cost | 0 | (70) | 0 | (207) |
Amortization of net actuarial loss | (186) | (208) | (563) | (620) |
Net periodic benefit cost | $ (155) | $ (197) | $ (467) | $ (588) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Income Tax Contingency [Line Items] | ||||
Effective tax rate | 2.30% | (0.80%) | 37.00% | 18.60% |
Income tax benefit | $ 30,000 | |||
Write-down of deferred tax liabilities | $ 20,355 | |||
Increase of uncertain tax benefits | $ 7,300 | |||
Possible decrease in reserve for unrecognized tax benefits | 600 | $ 600 | ||
Internal Revenue Service (IRS) | ||||
Income Tax Contingency [Line Items] | ||||
Payment of taxes and interest to settle dispute | $ 5,613 |
Leases - Additional Information
Leases - Additional Information (Details) | 9 Months Ended |
Oct. 03, 2021 | |
Lessee, Lease, Description [Line Items] | |
Lease term | 10 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal terms | 50 years |
Leases - Balance Sheet Location
Leases - Balance Sheet Location and Values of Lease Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease assets | $ 269,855 | $ 296,020 | [1] |
Finance lease assets | 47,154 | 36,267 | |
Total lease assets | 317,009 | 332,287 | |
Current operating lease liabilities | 44,588 | 52,138 | |
Current finance lease liabilities | 6,236 | 4,663 | |
Total current lease liabilities | 50,824 | 56,801 | |
Noncurrent operating lease liabilities | 236,590 | 262,048 | [1] |
Noncurrent finance lease liabilities | 45,101 | 33,280 | |
Total noncurrent lease liabilities | 281,691 | 295,328 | |
Total lease liabilities | $ 332,515 | $ 352,129 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other | ||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Notes payable and current portion of long-term debt | ||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term Debt, Excluding Current Maturities | ||
[1] | The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Leases - Components of Company'
Leases - Components of Company's Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 11,623 | $ 18,192 | $ 36,720 | $ 46,903 |
Amortization of lease asset | 1,476 | 1,061 | 4,133 | 5,999 |
Interest on lease liabilities | 367 | 258 | 997 | 721 |
Variable lease cost | 6,796 | 7,455 | 19,569 | 29,316 |
Total lease cost | $ 20,262 | $ 26,966 | $ 61,419 | $ 82,939 |
Leases - Other Lease Related In
Leases - Other Lease Related Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2021 | Sep. 27, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used by operating leases | $ 38,757 | $ 43,858 |
Operating cash flows used by finance leases | 997 | 721 |
Financing cash flows used by finance leases | 3,375 | 6,440 |
Leased assets obtained in exchange for new operating lease liabilities | 12,230 | 84,578 |
Leased assets obtained in exchange for new finance lease liabilities | 7,071 | 19,122 |
Modification to leased assets for increase/(decrease) in operating lease liabilities | 12,059 | (3,977) |
Modification to leased assets for increase in finance lease liabilities | 9,586 | 19,194 |
Termination reclasses to decrease operating lease assets | (4,971) | (4,232) |
Termination reclasses to decrease operating lease liabilities | (5,278) | (4,611) |
Termination reclasses to decrease finance lease assets | (33) | (19,994) |
Termination reclasses to decrease finance lease liabilities | $ (40) | $ (20,121) |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 9 Months Ended |
Oct. 03, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Payment terms | 120 days |
Revenue Recognition - Receivabl
Revenue Recognition - Receivables, Contract Assets and Liabilities from Contracts with Customer (Details) - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | |||
Contract Assets | $ 49,377 | $ 48,390 | $ 56,364 |
Contract Liabilities | $ (19,148) | $ (16,687) | $ (17,047) |
Revenue Recognition - Significa
Revenue Recognition - Significant Changes in the Contract Assets and Liabilities Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 03, 2021 | Dec. 31, 2020 | |
Contract Asset | ||
Beginning Balance | $ 48,390 | $ 56,364 |
Increases due to rights to consideration for customer specific goods produced, but not billed during the period | 49,377 | 48,390 |
Transferred to receivables from contract assets recognized at the beginning of the period | (48,390) | (56,364) |
Ending Balance | 49,377 | 48,390 |
Contract Liability | ||
Beginning Balance | (16,687) | (17,047) |
Revenue deferred or rebates accrued | (28,142) | (32,512) |
Recognized as revenue | 5,110 | 9,189 |
Rebates paid to customers | 20,571 | 23,683 |
Ending Balance | $ (19,148) | $ (16,687) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,415,193 | $ 1,312,314 | $ 4,151,251 | $ 3,861,095 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 923,983 | 848,504 | 2,723,911 | 2,528,164 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 233,172 | 275,896 | 702,861 | 775,905 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 55,799 | 39,880 | 157,166 | 139,030 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 102,218 | 81,320 | 293,827 | 224,574 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 100,021 | 66,714 | 273,486 | 193,422 |
Consumer Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 598,969 | 546,208 | 1,779,525 | 1,659,943 |
Consumer Packaging | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 408,295 | 387,658 | 1,219,666 | 1,194,067 |
Consumer Packaging | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 109,566 | 96,698 | 334,995 | 276,848 |
Consumer Packaging | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 31,612 | 22,131 | 87,948 | 74,708 |
Consumer Packaging | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,728 | 19,710 | 60,256 | 53,993 |
Consumer Packaging | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 28,768 | 20,011 | 76,660 | 60,327 |
Industrial Paper Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 635,230 | 490,369 | 1,809,159 | 1,447,886 |
Industrial Paper Packaging | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 370,659 | 293,968 | 1,042,249 | 863,514 |
Industrial Paper Packaging | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 99,573 | 78,780 | 300,495 | 237,599 |
Industrial Paper Packaging | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,187 | 17,749 | 69,218 | 64,322 |
Industrial Paper Packaging | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 81,097 | 61,463 | 232,657 | 170,046 |
Industrial Paper Packaging | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 59,714 | 38,409 | 164,540 | 112,405 |
All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 180,994 | 275,737 | 562,567 | 753,266 |
All Other | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 145,029 | 166,878 | 461,996 | 470,583 |
All Other | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,033 | 100,418 | 67,371 | 261,458 |
All Other | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
All Other | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 393 | 147 | 914 | 535 |
All Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 11,539 | $ 8,294 | $ 32,286 | $ 20,690 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 9 Months Ended |
Oct. 03, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (segment) | 2 |
Segment Reporting - Segment Fin
Segment Reporting - Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,415,193 | $ 1,312,314 | $ 4,151,251 | $ 3,861,095 |
Operating profit | 126,512 | 106,744 | 382,112 | 340,574 |
Restructuring/Asset impairment charges | (3,488) | (24,149) | (8,889) | (59,633) |
Other non-base income/(charges), net | 7,570 | 352 | 294 | (802) |
Consumer Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 598,969 | 546,208 | 1,779,525 | 1,659,943 |
Industrial Paper Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 635,230 | 490,369 | 1,809,159 | 1,447,886 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 180,994 | 275,737 | 562,567 | 753,266 |
Operating Segments | Consumer Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 598,969 | 546,208 | 1,779,525 | 1,659,943 |
Operating profit | 60,918 | 64,370 | 196,341 | 212,575 |
Operating Segments | Industrial Paper Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 635,230 | 490,369 | 1,809,159 | 1,447,886 |
Operating profit | 53,343 | 41,035 | 161,414 | 133,871 |
Operating Segments | All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 180,994 | 275,737 | 562,567 | 753,266 |
Operating profit | 8,169 | 25,136 | 32,952 | 54,563 |
Intersegment Sales | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 31,901 | 27,261 | 94,514 | 82,687 |
Intersegment Sales | Consumer Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,608 | 919 | 4,460 | 3,179 |
Intersegment Sales | Industrial Paper Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 27,975 | 24,528 | 82,571 | 73,538 |
Intersegment Sales | All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,318 | $ 1,814 | $ 7,483 | $ 5,970 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 119 Months Ended | ||
Sep. 29, 2019 | Oct. 03, 2021 | Dec. 31, 2020 | Nov. 30, 2011 | |
Site Contingency [Line Items] | ||||
Environmental accrual | $ 7,443 | $ 8,133 | ||
Spartanburg, South Carolina Site | Selling, general and administrative | ||||
Site Contingency [Line Items] | ||||
Decrease of reserves | $ 10,000 | |||
Spartanburg, South Carolina Site | Tegrant Holding Corporation | ||||
Site Contingency [Line Items] | ||||
Environmental accrual | 5,614 | 5,700 | $ 17,400 | |
Payment towards remediation of sites | 1,786 | |||
Multiple Sites | ||||
Site Contingency [Line Items] | ||||
Environmental accrual | $ 1,829 | $ 2,433 |