Cover
Cover - shares | 9 Months Ended | |
Oct. 01, 2023 | Oct. 20, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 01, 2023 | |
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 (in shares) | 97,956,364 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
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. 01, 2023 | Dec. 31, 2022 | [1] |
Current Assets | |||
Cash and cash equivalents | $ 257,940 | $ 227,438 | |
Trade accounts receivable, net of allowances | 964,054 | 862,712 | |
Other receivables | 100,772 | 99,492 | |
Inventories, net: | |||
Finished and in process | 363,914 | 453,981 | |
Materials and supplies | 462,118 | 641,577 | |
Prepaid expenses | 91,090 | 76,054 | |
Total Current Assets | 2,239,888 | 2,361,254 | |
Property, Plant and Equipment, Net | 1,826,230 | 1,710,399 | |
Goodwill | 1,762,411 | 1,675,311 | |
Other Intangible Assets, Net | 873,518 | 741,598 | |
Deferred Income Taxes | 30,935 | 29,878 | |
Right of Use Asset-Operating Leases | 311,642 | 296,781 | |
Other Assets | 225,375 | 237,719 | |
Total Assets | 7,269,999 | 7,052,940 | |
Current Liabilities | |||
Payable to suppliers | 695,550 | 818,885 | |
Accrued expenses and other | 420,935 | 405,671 | |
Notes payable and current portion of long-term debt | 42,279 | 502,440 | |
Accrued taxes | 26,435 | 16,905 | |
Total Current Liabilities | 1,185,199 | 1,743,901 | |
Long-term Debt, Net of Current Portion | 3,212,454 | 2,719,783 | |
Noncurrent Operating Lease Liabilities | 262,667 | 250,994 | |
Pension and Other Postretirement Benefits | 131,668 | 120,084 | |
Deferred Income Taxes | 98,100 | 107,293 | |
Other Liabilities | 40,756 | 38,088 | |
Commitments and Contingencies | |||
Common stock, no par value | |||
Authorized 300,000 shares 97,956 and 97,645 shares issued and outstanding at October 1, 2023 and December 31, 2022, respectively | 7,175 | 7,175 | |
Capital in excess of stated value | 152,148 | 140,539 | |
Accumulated other comprehensive loss | (420,110) | (430,083) | |
Retained earnings | 2,593,332 | 2,348,183 | |
Total Sonoco Shareholders’ Equity | 2,332,545 | 2,065,814 | |
Noncontrolling Interests | 6,610 | 6,983 | |
Total Equity | 2,339,155 | 2,072,797 | |
Total Liabilities and Equity | $ 7,269,999 | $ 7,052,940 | |
[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 (the “United States” or “U.S.”). |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - shares shares in Thousands | Oct. 01, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 300,000 | 300,000 |
Common stock, shares issued (in shares) | 97,956 | 97,645 |
Common stock, shares outstanding (in shares) | 97,956 | 97,645 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,710,419 | $ 1,890,216 | $ 5,145,492 | $ 5,574,530 |
Cost of sales | 1,346,163 | 1,523,070 | 4,049,490 | 4,448,818 |
Gross profit | 364,256 | 367,146 | 1,096,002 | 1,125,712 |
Selling, general and administrative expenses | 182,672 | 164,552 | 541,421 | 533,875 |
Restructuring/Asset impairment charges | 18,110 | 20,652 | 52,981 | 43,357 |
(Loss)/Gain on divestiture of business and other assets | (537) | 0 | 78,844 | 0 |
Operating profit | 162,937 | 181,942 | 580,444 | 548,480 |
Other income, net | 36,943 | 0 | 36,943 | 0 |
Non-operating pension costs | 3,424 | 1,249 | 10,424 | 4,251 |
Interest expense | 32,847 | 26,714 | 101,363 | 71,242 |
Interest income | 3,173 | 1,148 | 6,679 | 3,450 |
Income before income taxes | 166,782 | 155,127 | 512,279 | 476,437 |
Provision for income taxes | 39,351 | 36,824 | 127,003 | 116,712 |
Income before equity in earnings of affiliates | 127,431 | 118,303 | 385,276 | 359,725 |
Equity in earnings of affiliates, net of tax | 3,627 | 4,199 | 8,795 | 10,151 |
Net income | 131,058 | 122,502 | 394,071 | 369,876 |
Net income attributable to noncontrolling interests | (309) | (273) | (354) | (642) |
Net income attributable to Sonoco | $ 130,749 | $ 122,229 | $ 393,717 | $ 369,234 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 98,337 | 98,013 | 98,276 | 97,978 |
Diluted (in shares) | 98,912 | 98,762 | 98,800 | 98,669 |
Net income attributable to Sonoco: | ||||
Basic (in usd per share) | $ 1.33 | $ 1.25 | $ 4.01 | $ 3.77 |
Diluted (in usd per share) | $ 1.32 | $ 1.24 | $ 3.98 | $ 3.74 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income/(loss) | $ 131,058 | $ 122,502 | $ 394,071 | $ 369,876 |
Other comprehensive income/(loss): | ||||
Foreign currency translation adjustments | (49,024) | (81,972) | 4,474 | (151,580) |
Changes in defined benefit plans, net of tax | 3,401 | 861 | 2,554 | (876) |
Changes in derivative financial instruments, net of tax | (1,724) | (1,252) | 2,218 | (792) |
Other comprehensive (loss)/income | (47,347) | (82,363) | 9,246 | (153,248) |
Comprehensive income: | 83,711 | 40,139 | 403,317 | 216,628 |
Less: Net income attributable to noncontrolling interests | (309) | (273) | (354) | (642) |
Less: Other comprehensive loss attributable to noncontrolling interests | 668 | 515 | 727 | 148 |
Comprehensive income attributable to Sonoco | $ 84,070 | $ 40,381 | $ 403,690 | $ 216,134 |
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 | |
Beginning balance at Dec. 31, 2021 | $ 1,849,541 | $ 7,175 | $ 119,690 | $ (359,425) | $ 2,070,005 | $ 12,096 | |
Beginning balance (in shares) at Dec. 31, 2021 | 97,370 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 115,607 | 115,333 | 274 | ||||
Other comprehensive income/(loss): | |||||||
Translation income/(loss) | 706 | (185) | 891 | ||||
Defined benefit plan adjustment, net of tax | 191 | 191 | |||||
Derivative financial instruments, net of tax | 2,550 | 2,550 | |||||
Other comprehensive (loss) income | 3,447 | 2,556 | 891 | ||||
Dividends | (44,124) | (44,124) | |||||
Issuance of stock awards | 377 | 377 | |||||
Issuance of stock awards (in shares) | 182 | ||||||
Shares repurchased | (3,410) | (3,410) | |||||
Shares repurchased (in shares) | (60) | ||||||
Share-based compensation | 10,689 | 10,689 | |||||
Purchase of noncontrolling interest | (13,196) | (7,080) | (6,116) | ||||
Ending balance at Apr. 03, 2022 | 1,918,931 | $ 7,175 | 120,266 | (356,869) | 2,141,214 | 7,145 | |
Ending balance (in shares) at Apr. 03, 2022 | 97,492 | ||||||
Beginning balance at Dec. 31, 2021 | 1,849,541 | $ 7,175 | 119,690 | (359,425) | 2,070,005 | 12,096 | |
Beginning balance (in shares) at Dec. 31, 2021 | 97,370 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 369,876 | ||||||
Other comprehensive income/(loss): | |||||||
Translation income/(loss) | (151,580) | ||||||
Defined benefit plan adjustment, net of tax | (876) | ||||||
Derivative financial instruments, net of tax | (792) | ||||||
Other comprehensive (loss) income | (153,100) | ||||||
Ending balance at Oct. 02, 2022 | 1,935,081 | $ 7,175 | 134,917 | (512,525) | 2,299,040 | 6,474 | |
Ending balance (in shares) at Oct. 02, 2022 | 97,512 | ||||||
Beginning balance at Apr. 03, 2022 | 1,918,931 | $ 7,175 | 120,266 | (356,869) | 2,141,214 | 7,145 | |
Beginning balance (in shares) at Apr. 03, 2022 | 97,492 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 131,767 | 131,672 | 95 | ||||
Other comprehensive income/(loss): | |||||||
Translation income/(loss) | (70,314) | (69,790) | (524) | ||||
Defined benefit plan adjustment, net of tax | (1,928) | (1,928) | |||||
Derivative financial instruments, net of tax | (2,090) | (2,090) | |||||
Other comprehensive (loss) income | (74,332) | (73,808) | (524) | ||||
Dividends | (48,041) | (48,041) | |||||
Issuance of stock awards | 263 | 263 | |||||
Issuance of stock awards (in shares) | 13 | ||||||
Shares repurchased | (574) | (574) | |||||
Shares repurchased (in shares) | (10) | ||||||
Share-based compensation | 8,377 | 8,377 | |||||
Ending balance at Jul. 03, 2022 | 1,936,391 | $ 7,175 | 128,332 | (430,677) | 2,224,845 | 6,716 | |
Ending balance (in shares) at Jul. 03, 2022 | 97,495 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 122,502 | 122,229 | 273 | ||||
Other comprehensive income/(loss): | |||||||
Translation income/(loss) | (81,972) | (81,457) | (515) | ||||
Defined benefit plan adjustment, net of tax | 861 | 861 | 0 | ||||
Derivative financial instruments, net of tax | (1,252) | (1,252) | 0 | ||||
Other comprehensive (loss) income | (82,363) | (81,848) | (515) | ||||
Dividends | (48,034) | (48,034) | |||||
Issuance of stock awards | 270 | 270 | |||||
Issuance of stock awards (in shares) | 18 | ||||||
Shares repurchased | (72) | (72) | |||||
Shares repurchased (in shares) | (1) | ||||||
Share-based compensation | 6,387 | 6,387 | |||||
Ending balance at Oct. 02, 2022 | 1,935,081 | $ 7,175 | 134,917 | (512,525) | 2,299,040 | 6,474 | |
Ending balance (in shares) at Oct. 02, 2022 | 97,512 | ||||||
Beginning balance at Dec. 31, 2022 | $ 2,072,797 | [1] | $ 7,175 | 140,539 | (430,083) | 2,348,183 | 6,983 |
Beginning balance (in shares) at Dec. 31, 2022 | 97,645 | 97,645 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | $ 148,264 | 148,319 | (55) | ||||
Other comprehensive income/(loss): | |||||||
Translation income/(loss) | 31,808 | 31,569 | 239 | ||||
Defined benefit plan adjustment, net of tax | 916 | 916 | |||||
Derivative financial instruments, net of tax | 2,514 | 2,514 | |||||
Other comprehensive (loss) income | 35,238 | 34,999 | 239 | ||||
Dividends | (48,203) | (48,203) | |||||
Issuance of stock awards | 472 | 472 | |||||
Issuance of stock awards (in shares) | 485 | ||||||
Shares repurchased | (10,576) | (10,576) | |||||
Shares repurchased (in shares) | (175) | ||||||
Share-based compensation | 7,573 | 7,573 | |||||
Ending balance at Apr. 02, 2023 | 2,205,565 | $ 7,175 | 138,008 | (395,084) | 2,448,299 | 7,167 | |
Ending balance (in shares) at Apr. 02, 2023 | 97,955 | ||||||
Beginning balance at Dec. 31, 2022 | $ 2,072,797 | [1] | $ 7,175 | 140,539 | (430,083) | 2,348,183 | 6,983 |
Beginning balance (in shares) at Dec. 31, 2022 | 97,645 | 97,645 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | $ 394,071 | ||||||
Other comprehensive income/(loss): | |||||||
Translation income/(loss) | 4,474 | ||||||
Defined benefit plan adjustment, net of tax | 2,554 | ||||||
Derivative financial instruments, net of tax | 2,218 | ||||||
Other comprehensive (loss) income | 9,973 | ||||||
Ending balance at Oct. 01, 2023 | $ 2,339,155 | $ 7,175 | 152,148 | (420,110) | 2,593,332 | 6,610 | |
Ending balance (in shares) at Oct. 01, 2023 | 97,956 | 97,956 | |||||
Beginning balance at Apr. 02, 2023 | $ 2,205,565 | $ 7,175 | 138,008 | (395,084) | 2,448,299 | 7,167 | |
Beginning balance (in shares) at Apr. 02, 2023 | 97,955 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 114,749 | 114,649 | 100 | ||||
Other comprehensive income/(loss): | |||||||
Translation income/(loss) | 21,690 | 21,988 | (298) | ||||
Defined benefit plan adjustment, net of tax | (1,763) | (1,763) | |||||
Derivative financial instruments, net of tax | 1,428 | 1,428 | |||||
Other comprehensive (loss) income | 21,355 | 21,653 | (298) | ||||
Dividends | (50,180) | (50,180) | |||||
Issuance of stock awards | 222 | 222 | |||||
Issuance of stock awards (in shares) | 1 | ||||||
Shares repurchased | (26) | (26) | |||||
Shares repurchased (in shares) | 0 | ||||||
Share-based compensation | 7,637 | 7,637 | |||||
Ending balance at Jul. 02, 2023 | 2,299,322 | $ 7,175 | 145,841 | (373,431) | 2,512,768 | 6,969 | |
Ending balance (in shares) at Jul. 02, 2023 | 97,956 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 131,058 | 130,749 | 309 | ||||
Other comprehensive income/(loss): | |||||||
Translation income/(loss) | (49,024) | (48,356) | (668) | ||||
Defined benefit plan adjustment, net of tax | 3,401 | 3,401 | |||||
Derivative financial instruments, net of tax | (1,724) | (1,724) | |||||
Other comprehensive (loss) income | (47,347) | (46,679) | (668) | ||||
Dividends | (50,185) | (50,185) | |||||
Issuance of stock awards | 397 | 397 | |||||
Issuance of stock awards (in shares) | 0 | ||||||
Shares repurchased | (3) | (3) | |||||
Shares repurchased (in shares) | 0 | ||||||
Share-based compensation | 5,913 | 5,913 | |||||
Ending balance at Oct. 01, 2023 | $ 2,339,155 | $ 7,175 | $ 152,148 | $ (420,110) | $ 2,593,332 | $ 6,610 | |
Ending balance (in shares) at Oct. 01, 2023 | 97,956 | 97,956 | |||||
[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 (the “United States” or “U.S.”). |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
Cash Flows from Operating Activities: | ||
Net income/(loss) | $ 394,071 | $ 369,876 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Asset impairments | 26,122 | 13,857 |
Depreciation, depletion and amortization | 249,387 | 231,095 |
Share-based compensation expense | 21,123 | 25,453 |
Equity in earnings of affiliates, net | (8,795) | (10,151) |
Cash dividends from affiliated companies | 7,881 | 6,076 |
Net gain on disposition of assets | (59,050) | (178) |
Net gain on divestiture of business and other assets | (54,842) | 0 |
Pension and postretirement plan expense | 12,679 | 6,951 |
Pension and postretirement plan contributions | (10,311) | (33,548) |
Increase in net deferred tax liabilities | (14,451) | (1,745) |
Change in assets and liabilities, net of effects from acquisitions and foreign currency adjustments: | ||
Trade accounts receivable | (84,342) | (143,221) |
Inventories | 277,389 | (287,609) |
Payable to suppliers | (125,712) | 113,820 |
Prepaid expenses | (14,285) | (28,854) |
Income taxes payable and other income tax items | 9,549 | 44,493 |
Accrued expenses and other assets and liabilities | (9,536) | 15,740 |
Net cash provided by operating activities | 616,877 | 322,055 |
Cash Flows from Investing Activities: | ||
Purchases of property, plant and equipment | (254,874) | (236,772) |
Cost of acquisitions, net of cash acquired | (313,362) | (1,337,704) |
Proceeds from the sale of business, net | 31,147 | 0 |
Proceeds from the sale of assets, net | 72,737 | 6,040 |
Other net investing activities | 4,623 | (1,976) |
Net cash used in investing activities | (459,729) | (1,570,412) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of debt | 905,601 | 1,579,750 |
Principal repayment of debt | (878,513) | (70,556) |
Net change in commercial paper | 0 | (64,000) |
Net increase/(decrease) in outstanding checks | 1,925 | (16,509) |
Cash dividends | (147,477) | (139,289) |
Purchase of noncontrolling interest | 0 | (14,474) |
Payments for share repurchases | (10,605) | (4,056) |
Net cash (used in)/provided by financing activities | (129,069) | 1,270,866 |
Effects of Exchange Rate Changes on Cash | 2,423 | (11,249) |
Net Increase in Cash and Cash Equivalents | 30,502 | 11,260 |
Cash and cash equivalents at beginning of period | 227,438 | 170,978 |
Cash and cash equivalents at end of period | $ 257,940 | $ 182,238 |
Basis of Interim Presentation
Basis of Interim Presentation | 9 Months Ended |
Oct. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Interim Presentation | Basis of Interim Presentation In the opinion of the management of Sonoco Products Company (the “Company” or “Sonoco”), the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments, unless otherwise stated) necessary to state fairly the consolidated financial position, results of operations and cash flows for the interim periods reported herein. Operating results for the three- and nine-month periods ended October 1, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. 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, 2022.On September 8, 2023, the Company completed its previously announced acquisition of the remaining 65% interest in RTS Packaging, LLC (“RTS Packaging”), from joint venture partner WestRock Company (“WestRock”). This acquisition has been accounted for as a business combination resulting in the consolidation of RTS Packaging. Prior to September 8, 2023, the Company reported its 35% interest in the RTS Packaging joint venture using the equity method of accounting. See Note 3 for additional information. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Oct. 01, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04 “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” The amendments in this ASU require that a buyer in a supplier finance program disclose qualitative and quantitative information about its supplier finance programs in each annual reporting period, including a description of key payment terms, amounts outstanding, and a rollforward of the outstanding obligation. In each interim reporting period, the amount outstanding requires disclosure. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted this standard in the first quarter of 2023, with the exception of the amendment on rollforward information, which will be adopted in the first quarter of 2024. The adoption of the new standard did not have a material effect on the condensed consolidated financial statements. During the nine-month period ended October 1, 2023, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at October 1, 2023, there are no other pronouncements pending adoption that are expected to have a material impact on the Company’s condensed consolidated financial statements. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Oct. 01, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions On September 8, 2023, the Company completed the acquisition of the remaining 65% interest in RTS Packaging from joint venture partner WestRock and the acquisition of a paper mill in Chattanooga, Tennessee (“Chattanooga Mill”) from WestRock for net cash consideration of $313,362, subject to customary working capital adjustments. Prior to completing the acquisitions, the Company held a 35% ownership interest in the RTS Packaging joint venture which was formed in 1997 and combined the former protective packaging operations of WestRock and Sonoco to market recycled paperboard to glass container manufacturers and producers of wine, liquor, food, and pharmaceuticals. With the acquisitions of RTS Packaging and the Chattanooga Mill, the Company added approximately 1,100 employees and fourteen converting operations, including ten in the United States, two in Mexico, and two in South America and one paper mill in the United States. The Company funded the acquisitions with borrowings under a new term loan credit facility (See Note 9 for more information) and cash on hand. The financial results of RTS Packaging and the Chattanooga Mill are included in the Company’s Industrial Paper Packaging segment. On September 8, 2023, the fair value of the Company’s 35% interest in RTS Packaging was determined to be $59,472 based on the cash consideration exchanged for acquiring the remaining 65% equity interest in RTS Packaging adjusted for the deemed payment of a control premium, and the carrying value of the 35% interest was $8,654. The Company recognized a net gain of $44,029 resulting from this remeasurement to fair value and the reclassification of certain amounts related to the Company’s 35% interest out of “Accumulated other comprehensive loss,” including foreign currency translation losses of $2,033 and losses related to defined benefit pension plans of $4,756. The net gain from such remeasurement and reclassification was recorded in “Other income, net” in the Company’s Condensed Consolidated Statements of Income for the period ended October 1, 2023. The Company also recognized a loss of $7,086 on the settlement of a contract associated with the Chattanooga Mill. The contract was determined to have unfavorable terms given market conditions at the time of the acquisition. This loss is reflected in “Other income, net” in the Company’s Condensed Consolidated Statements of Income for the period ended October 1, 2023. This loss, along with the settlement of a note receivable from RTS Packaging held by the Company on the acquisition date, are reflected as components of purchase consideration transferred in connection with these acquisitions. The following table provides a summary of the purchase consideration (as defined under Accounting Standards Codification (“ASC”) 805) transferred for the acquisitions of RTS Packaging and the Chattanooga Mill: Purchase Consideration Cash consideration, net of cash acquired $ 313,362 Fair value of previously held interest in RTS Packaging 59,472 Settlement of preexisting relationships (1,479) Purchase consideration transferred $ 371,355 The provisional fair values of the assets acquired and liabilities assumed in connection with the acquisitions of RTS Packaging and the Chattanooga Mill in total are as follows: Initial Allocation Trade accounts receivable $ 17,488 Inventories 20,209 Prepaid expenses 2,720 Property, plant and equipment 73,483 Right of use asset - operating leases 34,604 Other intangible assets 199,560 Goodwill 92,657 Other net tangible assets 2,465 Payable to suppliers (7,320) Accrued expenses and other (15,167) Notes payable and current portion of long-term debt (24) Noncurrent operating lease liabilities (29,905) Long-term debt (1,942) Deferred income taxes (3,419) Other long-term liabilities (14,054) Net assets acquired $ 371,355 The initial allocation of the purchase price of RTS Packaging and the Chattanooga Mill to the tangible and intangible assets acquired and liabilities assumed, as reflected in the table above, is based on the Company’s preliminary allocations of their fair values, based on information currently available. Management is continuing to finalize its valuation of certain assets and liabilities including, but not limited to: inventory; property, plant and equipment; goodwill; other intangible assets; and deferred income taxes, and expects to complete its valuations within one year of the date of acquisition. Goodwill for RTS Packaging and the Chattanooga Mill, of which $81,435 is expected to be deductible for income tax purposes, consists of increased manufacturing capacity, access to certain markets, and the capability to support marquee customers in growing markets. The Company has accounted for these acquisitions as a business combination under the acquisition method and has included the results of operations of the acquired businesses in the Company’s Condensed Consolidated Statements of Income from the date of acquisition. The Company does not believe that these acquisitions were material to the periods presented and are therefore not subject to the ASC 805 requirement to provide supplemental pro-forma financial information. Accordingly, this information is not presented herein. On November 15, 2022, the Company completed the acquisition of S.P. Holding, Skjern A/S (“Skjern”), a privately owned manufacturer of paper based in Skjern, Denmark for $88,647, net of cash acquired. Skjern produces high-grade paperboard from recycled paper for rigid paper containers, tubes and cores, and other applications. Goodwill for Skjern, none of which is expected to be deductible for income tax purposes, consists of increased access to certain markets and existing customer relationships. Skjern’s financial results are included in the Company’s Industrial Paper Packaging segment. The Company’s initial fair value estimates of the assets acquired and the liabilities assumed in the Skjern acquisition, as well as updated preliminary fair value allocations reflecting adjustments made during the measurement period to date, are as follows: Initial Estimate Measurement Period Adjustments Preliminary Allocation Trade accounts receivable $ 8,055 $ — $ 8,055 Other receivables 193 — 193 Inventories 2,595 14 2,609 Prepaid expenses 349 — 349 Property, plant and equipment 24,334 4,921 29,255 Right of use asset - operating leases 28 — 28 Other intangible assets 42,818 (3,488) 39,330 Goodwill 29,059 2,932 31,991 Payable to suppliers (3,466) (963) (4,429) Accrued expenses and other (1,173) — (1,173) Taxes payable (576) (3,416) (3,992) Noncurrent operating lease liabilities (20) — (20) Deferred income taxes (13,549) — (13,549) Total purchase price, net of cash acquired $ 88,647 $ — $ 88,647 The allocation of the purchase price of Skjern to the tangible and intangible assets acquired and liabilities assumed, as reflected under the heading “Preliminary Allocation” in the table above, is based on the Company’s preliminary allocations of their fair value, based on information currently available. Management is continuing to finalize its valuation of certain assets and liabilities including, but not limited to: inventory; property, plant and equipment; goodwill; other intangible assets; and deferred income taxes, and expects to complete its valuations within one year of the date of acquisition. The Company has accounted for this acquisition as a business combination under the acquisition method and has included the results of operations of the acquired business in the Company’s Condensed Consolidated Statements of Income from the date of acquisition. On August 31, 2022, the Company completed the acquisition of Nordeste Tubetes and NE Tubetes (collectively “Nordeste”), two small tube and core operations in Brazil. Management completed its final valuation of the acquired assets in the third quarter of 2023, and total consideration for the two businesses was $6,419. Tangible assets totaled $1,374, intangible assets totaled $3,031, and Goodwill totaled $2,014. The Company paid $3,933 at closing and recorded a deferred payment obligation totaling $2,486, which is expected to be paid by the end of 2028, in “Other liabilities” on the Company’s Condensed Consolidated Balance Sheets. Goodwill for Nordeste, all of which is expected to be deductible for income tax purposes, consists of increased access to certain markets and existing customer relationships. The Company has accounted for this acquisition as a business combination under the acquisition method and has included the results of operations of the acquired business in the Company’s Condensed Consolidated Statements of Income from the date of acquisition. On January 26, 2022, the Company completed the acquisition of Ball Metalpack Holding, LLC, renamed Sonoco Metal Packaging (“Metal Packaging”), a leading supplier of sustainable metal packaging for food and household products and the largest aerosol can producer in North America, for $1,348,589, net of cash acquired. Prior to the Company’s acquisition of Metal Packaging, Ball Metalpack Holding, LLC was a joint venture formed in 2018 and owned by Platinum Equity (51%) and Ball Corporation (49%). Metal Packaging consists of eight manufacturing plants in the United States and a headquarters facility in Broomfield, Colorado. During the three-month period ended April 2, 2023, the Company finalized its valuations of the assets and liabilities assumed in the acquisition of Metal Packaging. As a result, the following measurement period adjustments were made to the previously disclosed provisional fair values of assets acquired and liabilities assumed during the nine-month period ended October 1, 2023: Measurement Period Adjustments Nine Months Ended October 1, 2023 Inventories $ (73) Property, plant and equipment (247) Goodwill 439 Accrued expenses and other (119) Additional cash consideration $ — The Company has accounted for this acquisition as a business combination under the acquisition method and has included the results of operations of the acquired business in the Company’s Condensed Consolidated Statements of Income from the date of acquisition. Metal Packaging’s financial results are included in the Company’s Consumer Packaging segment. The following table presents the unaudited financial results for Metal Packaging from the prior year date of acquisition through the end of the reporting period ended October 2, 2022: Supplemental Information (unaudited) Three Months Ended January 26 to Metal Packaging October 2, 2022 October 2, 2022 Net sales $ 335,468 $ 798,018 Net income $ 16,769 $ 61,216 The following table presents the Company’s estimated unaudited pro forma consolidated results for the three- and nine-month periods ended October 2, 2022, assuming the acquisition of Metal Packaging had occurred on January 1, 2021. This unaudited pro forma information is presented for informational purposes only and does not purport to represent the results of operations that would have been achieved if the acquisition had been completed at the beginning of 2021, nor is it necessarily indicative of future consolidated results. Pro Forma Supplemental Information (unaudited) Three Months Ended Nine Months Ended Consolidated October 2, 2022 October 2, 2022 Net sales $ 1,890,216 $ 5,624,118 Net income attributable to Sonoco $ 123,047 $ 428,287 The unaudited pro forma information above does not project the Company’s expected results for any future period and gives no effect to any future synergistic benefits that may result from the combination or the costs of integrating the acquired operations with those of the Company. Unaudited pro forma information for the three- and nine-month periods ended October 2, 2022 includes adjustments to depreciation, amortization, and income taxes based upon the final fair value allocation of the purchase price to Metal Packaging’s tangible and intangible assets acquired and liabilities assumed as though the acquisition had occurred on January 1, 2021. Interest expense on the additional debt issued by the Company to fund the acquisition and retention bonuses incurred related to the acquisition are also included in the unaudited pro forma information as if the acquisition had occurred on January 1, 2021. Metal Packaging acquisition-related costs of $310 and $1,463 were recognized during the three- and nine-month periods ended October 1, 2023, respectively. Metal Packaging acquisition-related costs of $793 and $27,195 were recognized during the three- and nine-month periods ended October 2, 2022, respectively, and charges related to fair value adjustments to acquisition-date inventory of $33,155 were recognized during the nine-month period ended October 2, 2022. These costs are excluded from 2022 unaudited pro forma net income as though the acquisition had occurred on January 1, 2021. Divestiture of Businesses On July 1, 2023, the Company completed the sale of its U.S. BulkSak business, which consisted of the manufacturing and distribution of flexible intermediate bulk containers, plastic and fiber pallets, and custom fit liners and was a part of the Company’s Industrial Paper Packaging segment, to U.S. BulkSak Holdings, LLC. The cash selling price, as adjusted for working capital, was $20,271 with cash proceeds totaling $16,808 received on July 3, 2023 and the remaining $3,463 held in escrow to be released to the Company within 18 months from the date of the sale, pursuant to working capital adjustments and the settlement of any indemnity claims. In September 2023, the Company agreed to a working capital adjustment with the buyers that reduced the amount to be released from escrow by $537 with a corresponding reduction in the previously recognized gain. This reduction is reflected in “(Loss)/Gain on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income. As a result of the U.S. BulkSak divestiture, the Company wrote off net assets totaling $13,437, including $3,333 of allocated goodwill, and recognized a pretax gain of $6,834 during the nine-month period ended October 1, 2023, which is included in “(Loss)/Gain on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income. The escrow balance is reflected as a receivable on the Company’s Condensed Consolidated Balance Sheets as of October 1, 2023 with the current portion of $1,463 in “Other receivables” and the non-current portion of $2,000 in “Other assets.” Also on July 1, 2023, the Company agreed to the sale of its Mexico BulkSak business for a total cash selling price of $1,500. The sale of Mexico BulkSak is expected to close at a later date upon the satisfactory completion of certain buyer and seller commitments. Although the transaction has not yet closed, the Company received cash proceeds of $500 on July 3, 2023 and has deferred recognition of the resulting gain pending the completion of the transaction. On January 26, 2023, the Company completed the sale of its Sonoco Sustainability Solutions (“S3”) business, a provider of customized waste and recycling management programs and part of the Company’s Industrial Paper Packaging segment, to Northstar Recycling Co. (“Northstar”), for total cash proceeds of $13,839. An additional $1,500 of proceeds are being held in escrow and will be released to the Company, pursuant to any indemnification claims, 20 months following the date of the divestiture. These escrow proceeds are included in “Other assets” in the Company’s Condensed Consolidated Balance Sheets as of October 1, 2023. The Company wrote off net assets totaling $4,274 as part of the divestiture of the business, including $3,042 of allocated goodwill, and recognized a pretax gain of $11,065 during the nine-month period ended October 1, 2023, which is included in “(Loss)/Gain on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income. The Company is also entitled to receive additional proceeds of $3,200 in the second quarter of 2024 if certain conditions are met. This contingent consideration will be recognized as additional gain on the sale at the point the contingencies are resolved. In addition, the Company purchased a 2.7% equity interest in Northstar for $5,000. This investment is being accounted for under the measurement alternative (i.e., cost less impairment, adjusted for any qualifying observable price changes). The sales of the S3 and U.S. BulkSak businesses did not represent a strategic shift for the Company or have a major effect on its operations or financial results. Consequently, these sales did not meet the criteria for reporting as discontinued operations. The cash 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. Sale of Assets With the completion of Project Horizon, the Company’s project to convert the corrugated medium machine in Hartsville, South Carolina, to produce uncoated recycled paperboard, the Company now produces paper exclusively from recycled fibers and no longer requires natural tree fiber for production. Accordingly, on March 29, 2023, the Company sold its timberland properties, approximately 55,000 acres, to Manulife Investment Management for net cash proceeds of $70,802. The Company disposed of assets with a net book value of $9,857 as part of the sale, and recognized a pretax gain from the sale of these assets of $60,945 during the nine-month period ended October 1, 2023, which is included in “(Loss)/Gain on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income. Acquisition, Integration, and Divestiture-Related Costs Acquisition, integration, and divestiture-related costs totaled $12,472 and $22,192 during the three- and nine-month periods ended October 1, 2023, respectively. These costs included $7,525 and $17,245 during the three- and nine-month periods ended October 1, 2023, respectively, for legal and professional fees, investment banking fees, and other transaction costs that are included in “Selling, general and administrative expenses,” and $4,947 of amortization of the fair value step-up of inventory, which is included in “Cost of sales” in the Company’s Condensed Consolidated Statements of Income. Acquisition and divestiture-related costs totaled $2,022 and $62,655 during the three- and nine-month periods ended October 2, 2022, respectively, primarily related to the Metal Packaging acquisition. The costs for the nine-month period ended October 2, 2022, included the partial amortization of the fair value step-up of finished goods inventory of $33,155, included in “Cost of sales” in the Company’s Condensed Consolidated Statements of Income, and other acquisition-related charges of $2,022 and $29,500, respectively. These other charges consisted primarily of investment banking fees, representation and warranty insurance premiums, legal and professional fees, and other transaction costs and are included in “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Oct. 01, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Earnings per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Numerator: Net income attributable to Sonoco $ 130,749 $ 122,229 $ 393,717 $ 369,234 Denominator: Weighted average common shares outstanding: Basic 98,337 98,013 98,276 97,978 Dilutive effect of share-based compensation 575 749 524 691 Diluted 98,912 98,762 98,800 98,669 Net income attributable to Sonoco per common share: Basic $ 1.33 $ 1.25 $ 4.01 $ 3.77 Diluted $ 1.32 $ 1.24 $ 3.98 $ 3.74 Cash dividends $ 0.51 $ 0.49 $ 1.51 $ 1.43 No adjustments were made to “Net income attributable to Sonoco” in the computations of net income 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 anti-dilutive. 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 1, 2023 and October 2, 2022 were as follows (in thousands): Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Anti-dilutive stock appreciation rights 338 366 341 380 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 several repurchase transactions in 2021, a total of $137,972 remained available for share repurchases under this authorization as of December 31, 2021. No shares were repurchased under this authorization during the year ended December 31, 2022 or the nine-month period ended October 1, 2023. The Company regularly 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 175 shares during the nine-month period ended October 1, 2023, at a cost of $10,605, and 71 shares during the nine-month period ended October 2, 2022, at a cost of $4,056. Dividend Declarations On February 8, 2023, the Board declared a regular quarterly dividend of $0.49 per share. This dividend was paid on March 10, 2023 to all shareholders of record as of February 22, 2023. On April 19, 2023, the Board declared a regular quarterly dividend of $0.51 per share. This dividend was paid on June 9, 2023 to all shareholders of record as of May 10, 2023. On July 19, 2023, the Board declared a regular quarterly dividend of $0.51 per share. This dividend is payable on September 8, 2023 to all shareholders of record as of August 10, 2023. On October 17, 2023, the Board declared a regular quarterly dividend of $0.51 per share. This dividend is payable on December 8, 2023 to all shareholders of record as of November 10, 2023. Noncontrolling Interests |
Restructuring and Asset Impairm
Restructuring and Asset Impairments | 9 Months Ended |
Oct. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairments | Restructuring and Asset Impairments Due to its geographic footprint and the cost-competitive nature of its businesses, the Company is continually seeking more cost-effective means and structures 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, nature, 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 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Restructuring and restructuring-related asset impairment charges $ 18,110 $ 20,652 $ 52,981 $ 33,262 Other asset impairments — — — 10,095 Restructuring/Asset impairment charges $ 18,110 $ 20,652 $ 52,981 $ 43,357 The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred: Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Severance and termination benefits $ 9,736 $ 9,265 $ 19,370 $ 13,578 Asset impairments 6,123 3,301 26,122 4,533 Other costs 2,251 8,086 7,489 15,151 Restructuring and restructuring-related asset impairment charges $ 18,110 $ 20,652 $ 52,981 $ 33,262 The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment: Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Consumer Packaging $ 8,288 $ 4,350 $ 11,792 $ 8,529 Industrial Paper Packaging 6,430 7,674 32,961 10,029 All Other 1,766 18 5,875 (399) Corporate 1,626 8,610 2,353 15,103 Restructuring and restructuring-related asset impairment charges $ 18,110 $ 20,652 $ 52,981 $ 33,262 Restructuring and restructuring-related 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, 2022 $ 14,677 $ — $ 1,392 $ 16,069 2023 charges 19,370 26,122 7,489 52,981 Cash payments (19,552) (166) (6,291) (26,009) Asset writedowns/disposals — (25,956) — (25,956) Foreign currency translation (81) — 9 (72) Liability at October 1, 2023 $ 14,414 $ — $ 2,599 $ 17,013 “Severance and Termination Benefits” during the first nine months of 2023 includes the cost of severance for approximately 300 employees whose positions were eliminated in conjunction with the Company’s ongoing organizational effectiveness efforts and severance related to the following plant closures: paper mills in Hutchinson, Kansas and Indonesia, part of the Industrial Paper Packaging segment; a metal packaging facility and a perimeter-of-the-store facility in the United States, both part of the Consumer Packaging segment; medical plastics facilities in the United States and United Kingdom, part of the All Other group of businesses; and severance related to the closures of several smaller operations. “Asset Impairments/Disposal of Assets” during the first nine months of 2023 consists primarily of asset impairment charges related to the closure of paper mills in Hutchinson, Kansas and Indonesia, a metal packaging facility and a perimeter-of-the-store facility in the United States, and medical plastics facilities in the United States and United Kingdom. “Other Costs” during the first nine months of 2023 consists primarily of consulting services, costs related to the closure of the Hutchinson, Kansas paper mill, and the cost of earlier 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 2023 using cash generated from operations. The Company also expects to recognize future additional charges totaling approximately $2,300 in connection with previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2023. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken. Other Asset Impairments Other asset impairment charges recognized during the nine-month period ended October 2, 2022 include net asset impairment charges totaling $9,165, resulting from the Company’s exit from its operations in Russia as a result of the ongoing Russia-Ukraine conflict. These operations consisted of two small tube and core plants in the Company’s Industrial Paper Packaging segment. The charges include $3,747 of cumulative translation adjustment losses that were reclassified from accumulated other comprehensive income upon completion of the Company’s exit from Russia on July 1, 2022. Fixed asset impairments totaling $930, were recognized in the nine-month period ended October 2, 2022, in the Company’s plastics foods operations, part of the Consumer Packaging segment. 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 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. 01, 2023 | |
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-month periods ended October 1, 2023 and October 2, 2022: Foreign Defined Cash Accumulated Balance at December 31, 2022 $ (338,316) $ (90,973) $ (794) $ (430,083) Other comprehensive income/(loss) before reclassifications 3,168 (4,045) 5,111 4,234 Amounts reclassified from accumulated other comprehensive loss to net income 2,033 6,599 (3,193) 5,439 Amounts reclassified from accumulated other comprehensive loss to property, plant, and equipment — — 300 300 Other comprehensive income 5,201 2,554 2,218 9,973 Balance at October 1, 2023 $ (333,115) $ (88,419) $ 1,424 $ (420,110) Balance at December 31, 2021 $ (269,076) $ (91,397) $ 1,048 $ (359,425) Other comprehensive (loss)/income before reclassifications (155,179) (3,948) 4,136 (154,991) Amounts reclassified from accumulated other comprehensive loss to net income 3,747 3,072 (4,286) 2,533 Amounts reclassified from accumulated other comprehensive loss to property, plant, and equipment — — (642) (642) Other comprehensive loss (151,432) (876) (792) (153,100) Balance at October 2, 2022 $ (420,508) $ (92,273) $ 256 $ (512,525) The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three- and nine-month periods ended October 1, 2023 and October 2, 2022: Amount Reclassified from Accumulated Three Months Ended Nine Months Ended Details about Accumulated Other October 1, October 2, October 1, October 2, Affected Line Item in Foreign currency items Loss on Russia exit (a) $ — $ — $ — $ (3,747) Restructuring/Asset impairment charges Loss on RTS Packaging investment (b) (2,033) — (2,033) — Other income, net (2,033) — (2,033) (3,747) Gains/(losses) on cash flow hedges Foreign exchange contracts (c) 3,195 559 6,772 2,425 Net sales Foreign exchange contracts (c) (1,180) (433) (2,552) (2,139) Cost of sales Commodity contracts (c) — 2,434 (32) 5,371 Cost of sales 2,015 2,560 4,188 5,657 Income before income taxes Income tax impact (558) (473) (995) (1,371) Provision for income taxes 1,457 2,087 3,193 4,286 Net income Defined benefit pension items Pension-related loss upon purchase of remaining interest in RTS Packaging joint venture (b) (4,756) — (4,756) — Other income, net Effect of settlement loss (d) (16) — (765) (430) Non-operating pension costs Amortization of defined benefit pension items (d) (1,103) (1,229) (3,306) (3,655) Non-operating pension costs (5,875) (1,229) (8,827) (4,085) Income before income taxes Income tax impact 1,478 313 2,228 1,013 Provision for income taxes (4,397) (916) (6,599) (3,072) Net income Total reclassifications for the period $ (4,973) $ 1,171 $ (5,439) $ (2,533) Net income (a) See Note 5 for additional details. (b) See Note 3 for additional details. (c) See Note 10 for additional details. (d) See Note 12 for additional details. The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the three-month periods ended October 1, 2023 and October 2, 2022: Three Months Ended October 1, 2023 Three Months Ended October 2, 2022 Before Tax Tax After Tax Before Tax Tax After Tax Foreign currency items: Net other comprehensive loss from foreign currency items $ (50,389) $ — $ (50,389) $ (81,457) $ — $ (81,457) Amounts reclassified from accumulated other comprehensive loss to net income (a) 2,033 — 2,033 — — — Net other comprehensive loss from foreign currency items (48,356) — (48,356) (81,457) — (81,457) Defined benefit pension items: Other comprehensive (loss)/income before reclassifications (1,137) 141 (996) (74) 19 (55) Amounts reclassified from accumulated other comprehensive loss to net income (a)(b) 5,875 (1,478) 4,397 1,229 (313) 916 Net other comprehensive income/(loss) from defined benefit pension items 4,738 (1,337) 3,401 1,155 (294) 861 Gains and losses on cash flow hedges: Other comprehensive (loss)/income before reclassifications (369) 102 (267) 1,336 (247) 1,089 Amounts reclassified from accumulated other comprehensive loss to net income (c) (2,015) 558 (1,457) (2,560) 473 (2,087) Amounts reclassified from accumulated other comprehensive loss to property, plant and equipment — — — (312) 58 (254) Net other comprehensive (loss)/income from cash flow hedges (2,384) 660 (1,724) (1,536) 284 (1,252) Other comprehensive loss $ (46,002) $ (677) $ (46,679) $ (81,838) $ (10) $ (81,848) (a) See Note 3 for more information on the acquisition of the remaining 65% interest in the RTS Packaging joint venture. (b) See Note 12 for additional details. (c) See Note 10 for additional details. The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the nine-month periods ended October 1, 2023 and October 2, 2022: Nine Months Ended October 1, 2023 Nine Months Ended October 2, 2022 Before Tax Tax After Tax Before Tax Tax After Tax Foreign currency items: Net other comprehensive income/(loss) from foreign currency items $ 3,168 $ — $ 3,168 $ (155,179) $ — $ (155,179) Amounts reclassified from accumulated other comprehensive loss to net income (a)(b) 2,033 — 2,033 3,747 — 3,747 Net other comprehensive income/(loss) from foreign currency items 5,201 — 5,201 (151,432) — (151,432) Defined benefit pension items: Other comprehensive (loss)/income before reclassifications (5,586) 1,541 (4,045) (5,257) 1,309 (3,948) Amounts reclassified from accumulated other comprehensive loss to net income (a)(c) 8,827 (2,228) 6,599 4,085 (1,013) 3,072 Net other comprehensive income/(loss) from defined benefit pension items 3,241 (687) 2,554 (1,172) 296 (876) Gains and losses on cash flow hedges: Other comprehensive income/(loss) before reclassifications 6,511 (1,400) 5,111 5,607 (1,471) 4,136 Amounts reclassified from accumulated other comprehensive loss to net income (d) (4,188) 995 (3,193) (5,657) 1,371 (4,286) Amounts reclassified from accumulated other comprehensive loss to property, plant and equipment 401 (101) 300 (864) 222 (642) Net other comprehensive income/(loss) from cash flow hedges 2,724 (506) 2,218 (914) 122 (792) Other comprehensive income/(loss) $ 11,166 $ (1,193) $ 9,973 $ (153,518) $ 418 $ (153,100) (a) See Note 3 for more information on the 2023 acquisition of the remaining 65% interest in the RTS Packaging joint venture. (b) See Note 5 for more information on the 2022 loss on the exit from Russia. (c) See Note 12 for additional details. (d) See Note 10 for additional details. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Oct. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill A summary of the changes in goodwill for the nine-month period ended October 1, 2023 is as follows: Consumer Industrial Paper Packaging All Other Total Goodwill at December 31, 2022 $ 898,625 $ 394,826 $ 381,860 $ 1,675,311 Acquisitions — 92,657 — 92,657 Divestitures — (6,375) — (6,375) Foreign currency translation (1,022) 1,903 (34) 847 Measurement period adjustments 439 (468) — (29) Goodwill at October 1, 2023 $ 898,042 $ 482,543 $ 381,826 $ 1,762,411 Goodwill activity reflected under the caption “Acquisitions” relates to the September 8, 2023 acquisitions of the remaining interest in RTS Packaging and the Chattanooga Mill. Goodwill activity reflected under the caption “Divestitures” relates to the sales of the Company’s S3 business on January 26, 2023 and the U.S. BulkSak business on July 1, 2023. Goodwill activity reflected under the caption “Measurement period adjustments” relates to the prior year acquisitions of Metal Packaging, Skjern and Nordeste. 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 2023 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 growth, gross 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 balance of the Plastics-Medical reporting unit, previously known as Plastics-Healthcare, 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. At October 1, 2023, the total goodwill associated with the Plastics-Medical reporting unit was $62,627. In the annual goodwill impairment analysis completed during the third quarter of 2023, projected future cash flows for the Plastics-Medical reporting unit were discounted at 12.0% and its estimated fair value was determined to exceed its carrying value by approximately 29.9%. Based on the discounted cash flow model and holding other valuation assumptions constant, the discount rate would have to be increased t o 14.5% in order for the estimated fair value of the reporting unit to fall below carrying value. During the time subsequent to the annual evaluation, and at October 1, 2023, the Company considered whether any events and/or changes in circumstances had resulted in the likelihood that the goodwill of any of its reporting units may have been impaired. It is management’s opinion that no such events and/or changes in circumstances have occurred. Other Intangible Assets A summary of other intangible assets as of October 1, 2023 and December 31, 2022 is as follows: October 1, December 31, Other Intangible Assets, gross: Patents $ 45,765 $ 29,303 Customer lists 1,268,759 1,092,232 Trade names 32,783 34,220 Proprietary technology 56,837 57,720 Other 6,169 6,721 Total Other Intangible Assets, gross $ 1,410,313 $ 1,220,196 Accumulated Amortization: Patents $ (19,238) $ (17,889) Customer lists (469,913) (417,034) Trade names (17,328) (15,892) Proprietary technology (27,763) (25,113) Other (2,553) (2,670) Total Accumulated Amortization (536,795) (478,598) Other Intangible Assets, net $ 873,518 $ 741,598 The acquisitions of the remaining interest in RTS Packaging and the Chattanooga Mill on September 8, 2023 resulted in the addition of $199,560 of intangible assets, primarily related to customer lists. These intangibles will be amortized over an average useful life of 17.5 years. The fair value of intangible assets associated with these acquisitions was determined using an income valuation approach. Other intangible assets, primarily customer lists, with a net book value of $2,704 were written off as a result of the divestiture of the U.S. BulkSak business on July 1, 2023. See Note 3 for additional information. Other intangible assets are amortized using the straight-line method over their respective useful lives when management has determined that the straight-line method approximates the pattern of consumption of the respective intangible assets or in relation to the asset’s specific pattern of consumption if management has determined that the straight-line method does not provide a fair approximation of the consumption of benefits. These lives generally range from three Aggregate amortization expense was $21,379 and $20,690 for the three-month periods ended October 1, 2023 and October 2, 2022, respectively, and $63,082 and $60,361 for the nine-month periods ended October 1, 2023 and October 2, 2022, respectively. Amortization expense on other intangible assets is expected to total approximately $85,000 in 2023, $84,200 in 2024, $75,700 in 2025, $73,200 in 2026 and $70,200 in 2027. |
Supply Chain Financing
Supply Chain Financing | 9 Months Ended |
Oct. 01, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Supply Chain Financing | Supply Chain FinancingThe Company facilitates voluntary supply chain financing programs (the “SCF Programs”) to provide certain of its suppliers with the opportunity to sell receivables due from the Company to the participating financial institutions in the programs. Such sales are conducted at the sole discretion of both the suppliers and the financial institutions on a nonrecourse basis at a rate that leverages the Company’s credit rating and thus might be more beneficial to the supplier. No guarantees are provided by the Company or any of its subsidiaries under the SCF Programs. The Company’s responsibility under the agreements is limited to making payment to the financial institutions for confirmed invoices based on the terms originally negotiated with its suppliers. Both the Company and the financial institutions have the right to terminate the SCF Programs by providing 30 days prior written notice to the other party. The Company does not enter into any agreements with suppliers regarding their participation in the SCF Programs. The following table sets forth the balance sheet location and values of the Company’s SCF Program obligations at October 1, 2023 and December 31, 2022: Balance Sheet Line Item October 1, 2023 December 31, 2022 Payable to suppliers (a) $ 36,484 $ 52,415 Notes payable and current portion of long-term debt (b) $ — $ 63,448 (a) The payment of these obligations is included in net cash provided by operating activities in the Company’s Condensed Consolidated Statements of Cash Flows. (b) The payment of these obligations is included in net cash used in financing activities in the Company’s Condensed Consolidated Statements of Cash Flows . |
Debt
Debt | 9 Months Ended |
Oct. 01, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Details of the Company’s debt at October 1, 2023 and December 31, 2022 are as follows: October 1, December 31, 2022 Syndicated term loan due December 2023 $ — $ 399,246 Syndicated term loan due January 2025 — 299,644 Syndicated term loan due August 2028 795,457 — 1.800% notes due February 2025 398,955 398,369 2.250% notes due February 2027 298,293 297,910 2.850% notes due February 2032 495,655 495,264 3.125% notes due May 2030 596,338 595,911 5.750% notes due November 2040 536,238 536,214 Other foreign denominated debt 22,830 20,668 Finance lease obligations 96,054 102,920 Other debt 14,913 76,077 Total debt $ 3,254,733 $ 3,222,223 Less current portion and short-term notes 42,279 502,440 Long-term debt $ 3,212,454 $ 2,719,783 On August 7, 2023, the Company entered into a credit agreement with a consortium of Farm Credit System institutions and CoBank, ACB, as Administrative Agent (the “Term Loan Agreement”). The Term Loan Agreement provides the Company with the ability to borrow up to $900,000 on an unsecured basis (the “Term Loan Facility”). A total of $600,000 was drawn from the Term Loan Facility on August 7, 2023 and used to repay the syndicated term loans that were due in December 2023 and January 2025, and to make certain capital expenditures and to reimburse the Company for certain capital expenditures it had made in its operation of waste disposal facilities in rural areas . An additional $270,000 was drawn from the T erm Loan Facility on September 8, 2023 and used to partially fund the acquisitions of the remaining interest in RTS Packaging and the Chattanooga Mill (see Note 3 for more information). Borrowings under the Term Loan Facility, net of any prepayments, will become payable in full on August 7, 2028. As of October 1, 2023, the Company has repaid a total of $70,000 of the amounts drawn under the Term Loan Facility. Borrowings under the Term Loan Facility bear interest at a fluctuating rate per annum equal to, at the Company’s option, (i) the forward-looking Secured Overnight Financing Rate term rate (“Term SOFR” and such borrowings, “Term SOFR Loans”), (ii) a base rate set forth in the Term Loan Agreement, or (iii) a combination thereof, plus, in each case, an applicable margin calculated based on the Company’s credit ratings and, in the of case of Term SOFR Loans, a SOFR Adjustment (as defined in the Term Loan Agreement) of 0.1%. The Company has designated its borrowings under the Term Loan Facility as Term SOFR Loans. The margin currently applicable to Term SOFR Loans based on the Company’s credit ratings, together with the SOFR Adjustment, is 1.90%. If Term SOFR ceases to be available, the benchmark rate shall switch to Daily Simple SOFR (as defined in the Term Loan Agreement). There is no required amortization under the Term Loan Facility, and voluntary prepayments are permissible without penalty, subject to certain conditions pertaining to minimum notice and minimum prepayment and reduction amounts as described in the Term Loan Agreement. The Term Loan Agreement contains various customary representations and warranties and affirmative and negative covenants, as more fully described in the Term Loan Agreement. The Term Loan Agreement also contains various customary events of default (subject to grace periods, as applicable) including, among others: nonpayment of principal, interest or fees; breach of covenant; payment default on, or acceleration under, certain other material indebtedness; inaccuracy of the representations or warranties in any material respect; bankruptcy or insolvency; inability to pay debts; certain unsatisfied judgments; certain ERISA-related events; the invalidity or unenforceability of the Term Loan Agreement or certain other documents executed in connection therewith; and the occurrence of a change of control. The Company entered into a five -year, $750,000 unsecured revolving credit facility on June 30, 2021. On August 7, 2023, the Company increased the commitments under this facility by $150,000 to an aggregate amount of $900,000. 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 1, 2023, 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. 01, 2023 | |
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 1, 2023 December 31, 2022 Carrying Fair Carrying Fair Long-term debt, net of current portion $ 3,212,454 $ 2,930,836 $ 2,719,783 $ 2,477,884 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 1, 2023 and December 31, 2022, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows. These contracts, w hich have maturities ranging to December 2024, 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. Cash flows from derivative financial instruments designated as cash flow hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. 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 cash flow hedges. At October 1, 2023, these contracts included natural gas swaps covering approximately 0.08 million metric million British thermal units (“MMBTUs”). These contracts represented approximatel y 0.9% o f anticipated usage in North America for both 2023 and 2024. The Company also has certain natural gas hedges that it does not treat as cash flow hedges. See “Non-Designated Derivatives” below for a discussion of these hedges. At October 1, 2023 , the Company has also designated swap contracts covering 179 metric tons of aluminum as cash flow hedges. The fair value of the Company’s commodity cash flow hedges netted to a loss position of $(147) and $(172) at October 1, 2023 and December 31, 2022, respectively. The amount of the loss included in accumulated other comprehensive loss at October 1, 2023 expected to be reclassified to the income statement during the next twelve months is $(137). 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 2023 and 2024. The net positions of these contracts at October 1, 2023 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 8,369,071 Mexican peso purchase 149,124 Polish zloty purchase 24,703 Czech koruna purchase 14,187 Canadian dollar purchase 3,104 Euro purchase 149 Turkish lira purchase 2,635 Brazilian real purchase 1,367 British pound purchase 1,131 The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to a gain position of $1,844 and a loss position of $(299) at October 1, 2023 and December 31, 2022, respectively. Gains of $1,844 are expected to be reclassified from accumulated other comprehensive income to the income statement during the next twelve months. In addition, the Company has from time to time entered into forward contracts to hedge certain foreign currency cash flow transactions related to construction in progress. As of October 1, 2023 and December 31, 2022, the net position of these contracts was $0 and $(564), respectively. During the nine-month period ended October 1, 2023, losses from these hedges totaling $(401) were reclassified from accumulated other comprehensive loss into the carrying value of the capitalized expenditures. As of October 1, 2023, no amounts are expected to be reclassified from accumulated other comprehensive loss into the carrying value of the related fixed assets during the next twelve months. Non-Designated Derivatives The Company routinely enters into other derivative contracts which are not designated for hedge accounting treatment under ASC 815. As such, changes in fair value of these non-designated derivatives are recorded directly to income and expense in the periods that they occur. Cash flows from derivative financial instruments not designated as hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. Foreign Currency Hedges 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 net currency positions of these non-designated contracts at October 1, 2023, were as follows (in thousands): Currency Action Quantity Indonesian rupiah purchase 3,544,012 Colombian peso purchase 67,456,759 Mexican peso purchase 545,248 Turkish lira purchase 8,766 Canadian dollar purchase 11,548 British pound purchase 2,784 Polish zloty purchase 8,526 Commodity Hedges The Company has entered into non-designated derivative contracts to manage the cost of a nticipated purchases of natural gas. At October 1, 2023, these contracts consisted of natural gas swaps covering approximately 5.5 million MMBTUs and represented approximately 76% and 55% of anticipated usage for 2023 and 2024, respectively. Interest Rate Hedges Pursuant to the registered public offering of unsecured 2.850% notes with a principal amount of $500,000 maturing on February 1, 2032, the Company entered into treasury lock derivative instruments with two banks, with a notional principal amount of $150,000 each on December 29, 2021. These instruments had the risk management objective of reducing exposure to the Company of increases in the underlying Treasury index up to the date of pricing of the notes. The derivatives were settled when the bonds priced on January 11, 2022, with the Company recognizing a gain on the settlement of $5,201. The gain is included in “Selling, general and administrative expenses” on the Company’s Condensed Consolidated Statements of Income for t he nine-month period ended October 2, 2022 . The fair value of the Company’s non-designated derivatives position was a loss of $(6,844) and $(8,692) at October 1, 2023 and December 31, 2022, respectively. The following table sets forth the location and fair values of the Company’s derivative instruments at October 1, 2023 and December 31, 2022: Description Balance Sheet Location October 1, 2023 December 31, 2022 Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ — $ 10 Commodity Contracts Other assets $ — $ 8 Commodity Contracts Accrued expenses and other $ (137) $ (155) Commodity Contracts Other liabilities $ (10) $ (35) Foreign Exchange Contracts Prepaid expenses $ 2,848 $ 1,251 Foreign Exchange Contracts Accrued expenses and other $ (1,004) $ (2,114) Derivatives not designated as hedging instruments: Commodity Contracts Prepaid expenses $ 5 $ 5 Commodity Contracts Other assets $ 24 $ 251 Commodity Contracts Accrued expenses and other $ (6,763) $ (8,599) Commodity Contracts Other liabilities $ (427) $ (295) Foreign Exchange Contracts Prepaid expenses $ 773 $ 115 Foreign Exchange Contracts Accrued expenses and other $ (456) $ (169) While certain of the Company’s derivative contract arrangements with its counterparties provide for the ability to settle contracts on a net basis, the Company reports its derivative positions on a gross basis. There are no collateral arrangements or requirements in these agreements. The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three-month periods ended October 1, 2023 and October 2, 2022, excluding the amount of 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-month period ended October 1, 2023 Foreign Exchange Contracts $ (509) Net sales $ 3,195 Cost of sales $ (1,180) Commodity Contracts $ 140 Cost of sales $ — Three-month period ended October 2, 2022 Foreign Exchange Contracts $ (290) Net sales $ 559 Cost of sales $ (433) Commodity Contracts $ 1,626 Cost of sales $ 2,434 Description Gain or (Loss) Location of Gain or (Loss) Recognized in Derivatives not Designated as Hedging Instruments: Three-month period ended October 1, 2023 Commodity Contracts $ (2,118) Cost of sales Foreign Exchange Contracts $ 579 Selling, general and administrative Three-month period ended October 2, 2022 Commodity Contracts $ 2,574 Cost of sales Foreign Exchange Contracts $ (484) Selling, general and administrative Three-month period ended October 1, 2023 Three-month period ended October 2, 2022 Description Revenue Cost of Revenue Cost of Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 3,195 $ (1,180) $ 559 $ 2,001 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 $ 3,195 $ (1,180) $ 559 $ (433) Commodity contracts: Amount of gain reclassified from accumulated other comprehensive loss into net income $ — $ — $ — $ 2,434 The following tables set forth the effect of the Company’s derivative instruments on financial performance for the nine months ended October 1, 2023 and October 2, 2022, excluding the amount of 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-month period ended October 1, 2023 Foreign Exchange Contracts $ 6,517 Net sales $ 6,772 Cost of sales $ (2,552) Commodity Contracts $ (6) Cost of sales $ (32) Nine-month period ended October 2, 2022 Foreign Exchange Contracts $ (202) Net sales $ 2,425 Cost of sales $ (2,139) Commodity Contracts $ 5,809 Cost of sales $ 5,371 Description Gain or (Loss) Location of Gain or (Loss) Recognized in Derivatives not Designated as Hedging Instruments: Nine-month period ended October 1, 2023 Commodity Contracts $ (13,635) Cost of sales Foreign Exchange Contracts $ 4,651 Selling, general and administrative Nine-month period ended October 2, 2022 Commodity Contracts $ 10,072 Cost of sales Foreign Exchange Contracts $ (283) Selling, general and administrative Nine-month period ended October 1, 2023 Nine-month period ended October 2, 2022 Description Revenue Cost of Revenue Cost of Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 6,772 $ (2,584) $ 2,425 $ 3,232 Gain or (loss) on cash flow hedging relationships: Foreign exchange contracts: Amount of gain/(loss) reclassified from accumulated other comprehensive income into net income $ 6,772 $ (2,552) $ 2,425 $ (2,139) Commodity contracts: Amount of gain reclassified from accumulated other comprehensive income into net income $ — $ (32) $ — $ 5,371 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 01, 2023 | |
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 1, 2023 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (147) $ — $ — $ (147) $ — Foreign exchange contracts $ 1,844 $ — $ — $ 1,844 $ — Non-hedge derivatives, net: Commodity contracts $ (7,161) $ — $ — $ (7,161) $ — Foreign exchange contracts $ 317 $ — $ — $ 317 $ — Description December 31, 2022 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (172) $ — $ — $ (172) $ — Foreign exchange contracts $ (863) $ — $ — $ (863) $ — Non-hedge derivatives, net: Commodity contracts $ (8,638) $ — $ — $ (8,638) $ — Foreign exchange contracts $ (54) $ — $ — $ (54) $ — As discussed in Note 10, the Company uses derivatives to mitigate the effect of commodity 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. 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 1, 2023. The Company measures certain non-financial assets and non-financial liabilities at fair value on a non-recurring basis. See Note 3 for a discussion of assets acquired and liabilities assumed in acquisitions and Note 5 for a |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Oct. 01, 2023 | |
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 for certain of its employees in the United States, Mexico, Belgium, Germany, Greece, France, and Turkey. The Company also sponsors contributory defined benefit pension plans covering certain of its employees in the United Kingdom, Canada and the Netherlands, and provides postretirement healthcare and life insurance benefits to a limited number of its retirees and their dependents in the United States and Canada, based on certain age and/or service eligibility requirements. The components of net periodic benefit cost/(income) include the following: Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Retirement Plans Service cost $ 704 $ 796 $ 2,083 $ 2,459 Interest cost 4,770 2,593 13,462 7,974 Expected return on plan assets (2,515) (2,527) (7,257) (7,670) Amortization of prior service cost 223 220 669 673 Amortization of net actuarial loss 1,074 1,179 3,221 3,495 Effect of settlement loss 16 — 765 430 Net periodic benefit cost $ 4,272 $ 2,261 $ 12,943 $ 7,361 Retiree Health and Life Insurance Plans Service cost $ 57 $ 80 $ 172 $ 241 Interest cost 127 64 383 194 Expected return on plan assets (78) (110) (235) (332) Amortization of net actuarial gain (194) (170) (584) (513) Net periodic benefit income $ (88) $ (136) $ (264) $ (410) Settlement Charges The Company recognized settlement ch arges of $765 and $430 during the nine-month periods ended October 1, 2023 and October 2, 2022, 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 2023 as a result of ongoing lump-sum distributions. Contributions The Company made aggregate contributions of $10,311 and $11,600 to its defined benefit retirement and retiree health and life insurance plans during the nine-month periods ended October 1, 2023 and October 2, 2022, respectively. The Company expects to make additional aggregate contributions of approximately $4,400 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2023. RTS Packaging Pension Plan On September 8, 2023, the Company completed the acquisition of the remaining 65% ownership interest of the RTS Packaging joint venture, which included the assumption of the RTS Packaging Pension plan (the “RTS Plan”). At the time of the acquisition, the RTS Plan had a projected benefit obligation of $43,547 and plan assets of $33,109. The resulting unfunded pension obligation of $10,438 was recorded in “Pension and Other Postretirement Benefits” on the Company’s Condensed Consolidated Balance Sheets as of October 1, 2023. Since the formation of the original joint venture, the Company had recognized its 35% share of actuarial gains and losses related to the RTS Plan in “Accumulated other comprehensive loss.” Upon the acquisition of the remaining 65% interest in RTS Packaging, a pre-tax loss of $4,756 ($3,543 after tax) was reclassified out of “Accumulated other comprehensive loss” into earnings. The pre-tax loss is reflected in “Other income, net” in the Company’s Condensed Consolidated Statements of Income for the three- and nine-month periods ended October 1, 2023. Sonoco Retirement and Savings Plan The Sonoco Retirement and Savings Plan is a defined contribution retirement plan provided for certain of the Company’s U.S. employees. The plan is comprised of both an elective and non-elective component. The elective component of the plan, which is designed to meet the requirements of Section 401(k) of the Internal Revenue Code, allows participants to set aside a portion of their wages and salaries for retirement and encourages saving by matching a portion of their contributions with contributions from the Company. The plan provides for participant contributions of 1% to 100% of gross pay. Effective December 31, 2021, the Company’s match on elective contributions to the plan increased from 50% of the first 4% of compensation contributed by participants to 100% of the first 6% as a result of changes to the plan, described below. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rates for the three- and nine-month periods ended October 1, 2023 were 23.6% and 24.8%, respectively, and its rates for the three- and nine-month periods ended October 2, 2022 were 23.7% and 24.5%, respectively. The Company’s effective tax rates varied from the U.S. statutory rate due primarily to rate differences between U.S. and non-U.S. jurisdictions and the relative amounts earned in those jurisdictions, state income taxes, and discrete tax adjustments. 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 2017. |
Leases
Leases | 9 Months Ended |
Oct. 01, 2023 | |
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 performed after contemplating all the relevant facts and circumstances in accordance with guidance under ASC 842 - “Leases.” Most of the Company’s real estate leases, in particular, include one or more options to renew, with renewal terms that typically extend the lease term in increments from one As the implicit rate in the Company’s leases is normally not readily determinable, the Company generally 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 Company completed the acquisitions of the remaining interest in RTS Packaging and the Chattanooga Mill on September 8, 2023. The acquisition included operating lease liabilities of $34,604. For additional information about this acquisition, see Note 3. On January 26, 2022, the Company completed the acquisition of Metal Packaging, which included the assumption of $33,910 in operating lease liabilities and $46,687 in finance lease liabilities as of the date of acquisition. The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at October 1, 2023 and December 31, 2022: Classification Balance Sheet Location October 1, 2023 December 31, 2022 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 311,642 $ 296,781 Finance lease assets Other Assets 97,863 103,467 Total lease assets $ 409,505 $ 400,248 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 54,526 $ 52,306 Current finance lease liabilities Notes payable and current portion of debt 19,426 19,015 Total current lease liabilities $ 73,952 $ 71,321 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 262,667 $ 250,994 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 76,628 83,905 Total noncurrent lease liabilities $ 339,295 $ 334,899 Total lease liabilities $ 413,247 $ 406,220 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 1, 2023 and October 2, 2022: Three Months Ended Nine Months Ended Lease Cost October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Operating lease cost (a) $ 14,075 $ 12,863 $ 41,377 $ 38,679 Finance lease cost: Amortization of lease asset (a) 3,468 3,133 10,187 9,122 Interest on lease liabilities (b) 1,146 1,270 3,519 3,517 Variable lease cost (a) (c) 9,525 7,894 30,198 22,416 Impairment charges (d) — 61 — 293 Total lease cost $ 28,214 $ 25,221 $ 85,281 $ 74,027 (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-month periods ended October 1, 2023 and October 2, 2022: Nine Months Ended October 1, 2023 October 2, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 41,406 $ 39,405 Operating cash flows used by finance leases $ 3,519 $ 3,517 Financing cash flows used by finance leases $ 12,359 $ 9,181 Noncash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities $ 11,529 $ 31,048 Leased assets obtained in exchange for new finance lease liabilities $ 5,783 $ 8,224 Modification to leased assets for increase in operating lease liabilities $ 2,357 $ 2,258 Modification to leased assets for increase/(decrease) in finance lease liabilities $ 12 $ (642) Termination reclasses to decrease operating lease assets $ (3,334) $ (4,133) Termination reclasses to decrease operating lease liabilities $ (3,834) $ (4,382) Termination reclasses to decrease finance lease assets $ — $ (1,351) Termination reclasses to decrease finance lease liabilities $ (12) $ (87) |
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 performed after contemplating all the relevant facts and circumstances in accordance with guidance under ASC 842 - “Leases.” Most of the Company’s real estate leases, in particular, include one or more options to renew, with renewal terms that typically extend the lease term in increments from one As the implicit rate in the Company’s leases is normally not readily determinable, the Company generally 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 Company completed the acquisitions of the remaining interest in RTS Packaging and the Chattanooga Mill on September 8, 2023. The acquisition included operating lease liabilities of $34,604. For additional information about this acquisition, see Note 3. On January 26, 2022, the Company completed the acquisition of Metal Packaging, which included the assumption of $33,910 in operating lease liabilities and $46,687 in finance lease liabilities as of the date of acquisition. The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at October 1, 2023 and December 31, 2022: Classification Balance Sheet Location October 1, 2023 December 31, 2022 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 311,642 $ 296,781 Finance lease assets Other Assets 97,863 103,467 Total lease assets $ 409,505 $ 400,248 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 54,526 $ 52,306 Current finance lease liabilities Notes payable and current portion of debt 19,426 19,015 Total current lease liabilities $ 73,952 $ 71,321 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 262,667 $ 250,994 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 76,628 83,905 Total noncurrent lease liabilities $ 339,295 $ 334,899 Total lease liabilities $ 413,247 $ 406,220 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 1, 2023 and October 2, 2022: Three Months Ended Nine Months Ended Lease Cost October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Operating lease cost (a) $ 14,075 $ 12,863 $ 41,377 $ 38,679 Finance lease cost: Amortization of lease asset (a) 3,468 3,133 10,187 9,122 Interest on lease liabilities (b) 1,146 1,270 3,519 3,517 Variable lease cost (a) (c) 9,525 7,894 30,198 22,416 Impairment charges (d) — 61 — 293 Total lease cost $ 28,214 $ 25,221 $ 85,281 $ 74,027 (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-month periods ended October 1, 2023 and October 2, 2022: Nine Months Ended October 1, 2023 October 2, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 41,406 $ 39,405 Operating cash flows used by finance leases $ 3,519 $ 3,517 Financing cash flows used by finance leases $ 12,359 $ 9,181 Noncash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities $ 11,529 $ 31,048 Leased assets obtained in exchange for new finance lease liabilities $ 5,783 $ 8,224 Modification to leased assets for increase in operating lease liabilities $ 2,357 $ 2,258 Modification to leased assets for increase/(decrease) in finance lease liabilities $ 12 $ (642) Termination reclasses to decrease operating lease assets $ (3,334) $ (4,133) Termination reclasses to decrease operating lease liabilities $ (3,834) $ (4,382) Termination reclasses to decrease finance lease assets $ — $ (1,351) Termination reclasses to decrease finance lease liabilities $ (12) $ (87) |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 01, 2023 | |
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 estimated revenue and are determinable within a short time period following the sale. The following table sets 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 1, 2023 December 31, 2022 Contract Assets $ 59,782 $ 56,008 Contract Liabilities $ (32,481) $ (22,423) Significant changes in the contract assets and liabilities balances during the nine-month period ended October 1, 2023 and the year ended December 31, 2022 were as follows: October 1, 2023 December 31, 2022 Contract Contract Contract Contract Beginning Balance $ 56,008 $ (22,423) $ 51,106 $ (18,993) Acquired as part of a business combination — (1,786) 8,107 (5,418) Revenue deferred or rebates accrued — (35,772) — (57,510) Recognized as revenue 8,236 18,201 Rebates paid to customers — 19,264 — 41,297 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 59,782 — 56,008 — Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combinations (56,008) — (59,213) — Ending Balance $ 59,782 $ (32,481) $ 56,008 $ (22,423) 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 receipts of advance payments. 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 second half of the contract term. Contract assets and liabilities are generally short in duration given the nature of products produced by the Company. The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended October 1, 2023 and October 2, 2022. The tables also include a reconciliation of disaggregated revenue with reportable segments. The Company’s reportable segments are aligned by product nature as disclosed in Note 16 . Three-month period ended October 1, 2023 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 726,137 $ 335,136 $ 161,600 $ 1,222,873 Europe 116,148 91,175 18,304 225,627 Canada 29,268 24,866 — 54,134 Asia 24,828 59,284 628 84,740 Other 42,026 69,574 11,445 123,045 Total $ 938,407 $ 580,035 $ 191,977 $ 1,710,419 Three-month period ended October 2, 2022 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 837,048 $ 405,382 $ 165,476 $ 1,407,906 Europe 101,665 99,804 19,811 221,280 Canada 30,154 28,471 — 58,625 Asia 25,492 65,475 185 91,152 Other 36,190 62,320 12,743 111,253 Total $ 1,030,549 $ 661,452 $ 198,215 $ 1,890,216 The following tables set forth information about revenue disaggregated by primary geographic regions for the nine-month periods ended October 1, 2023 and October 2, 2022. The tables also include a reconciliation of disaggregated revenue with reportable segments. Nine-month period ended October 1, 2023 Consumer Industrial All Other Total Primary Geographical Markets: United States $ 2,130,895 $ 1,035,849 $ 491,821 $ 3,658,565 Europe 346,287 300,145 62,897 709,329 Canada 89,860 76,029 — 165,889 Asia 73,430 173,903 1,322 248,655 Other 130,818 195,107 37,129 363,054 Total $ 2,771,290 $ 1,781,033 $ 593,169 $ 5,145,492 Nine-month period ended October 2, 2022 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 2,282,559 $ 1,259,348 $ 493,136 $ 4,035,043 Europe 331,745 334,007 66,500 732,252 Canada 89,342 84,952 — 174,294 Asia 74,533 215,896 748 291,177 Other 110,451 193,778 37,535 341,764 Total $ 2,888,630 $ 2,087,981 $ 597,919 $ 5,574,530 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Oct. 01, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other. The products produced and sold within the Consumer Packaging segment consist primarily of round and shaped rigid paper, steel and plastic containers; metal and peelable membrane ends, closures, and components; thermoformed plastic trays; and high-barrier flexible packaging. The primary products produced and sold within the Industrial Paper Packaging segment include paperboard tubes, cones, and cores; paper-based protective packaging; and uncoated recycled paperboard. Total assets of the Industrial Paper Packaging segment increased $364,566 during the third quarter of 2023 due to the acquisitions of the remaining interest in RTS Packaging and the Chattanooga Mill. The primary products produced with the All Other group of businesses consist of a variety of packaging materials, including plastic, paper, foam, and various other specialty materials. The following table sets forth net sales, intersegment sales and operating profit for the Company’s reportable segments and the All Other group of businesses. Segment operating profit is the measure of segment profit or loss reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance in accordance with ASC 280 - “Segment Reporting,” as prescribed by the FASB. Segment operating profit viewed by the Company’s management to evaluate segment performance does not include the following: restructuring/asset impairment charges; amortization of acquisition intangibles; acquisition, integration and divestiture-related costs; changes in last-in, first-out inventory reserves; gains/losses from the sale of businesses or other assets; or certain other items, if any, the exclusion of which the Company believes improves the comparability and analysis of the ongoing operating performance of the business. All other general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and the All Other group of businesses. SEGMENT FINANCIAL INFORMATION Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Net sales: Consumer Packaging $ 938,407 $ 1,030,549 $ 2,771,290 $ 2,888,630 Industrial Paper Packaging 580,035 661,452 1,781,033 2,087,981 All Other 191,977 198,215 593,169 597,919 Net sales $ 1,710,419 $ 1,890,216 $ 5,145,492 $ 5,574,530 Intersegment sales: Consumer Packaging $ 2,794 $ 1,663 $ 7,269 $ 5,189 Industrial Paper Packaging 3,032 33,936 77,163 101,072 All Other 1,900 2,532 7,317 7,755 Intersegment sales $ 7,726 $ 38,131 $ 91,749 $ 114,016 Operating profit: Consumer Packaging $ 112,038 $ 127,859 $ 299,083 $ 440,889 Industrial Paper Packaging 75,006 81,859 256,413 248,721 All Other 25,502 15,373 81,409 46,426 Corporate Restructuring/Asset impairment charges (18,110) (20,652) (52,981) (43,357) Amortization of acquisition intangibles (21,379) (20,690) (63,082) (60,361) Other operating income/(charges), net (10,120) (1,807) 59,602 (83,838) Operating profit $ 162,937 $ 181,942 $ 580,444 $ 548,480 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 01, 2023 | |
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. Since the acquisition, the Company has spent a total of $2,105 on remediation of the Spartanburg site. At October 1, 2023 and December 31, 2022, the Company’s accrual for environmental contingencies related to the Spartanburg site totaled $5,295 and $5,425, 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 1, 2023 and December 31, 2022, the Company’s accrual for these other sites totaled $1,666 and $1,840, respectively. Summary As of October 1, 2023 and December 31, 2022, the Company (and its subsidiaries) had accrued $6,960 and $7,265, respectively, related to environmental contingencies. These accruals are included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets. Other Legal Matters In addition to those matters described above, the Company is subject to other various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters could differ from management’s expectations, the Company does not believe the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s financial statements. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Pay vs Performance Disclosure | ||||
Net income attributable to Sonoco | $ 130,749 | $ 122,229 | $ 393,717 | $ 369,234 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Oct. 01, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Oct. 01, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | During the nine-month period ended October 1, 2023, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at October 1, 2023, there are no other pronouncements pending adoption that are expected to have a material impact on the Company’s condensed 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. 01, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of the Purchase Consideration Transferred for the Acquisitions | The following table provides a summary of the purchase consideration (as defined under Accounting Standards Codification (“ASC”) 805) transferred for the acquisitions of RTS Packaging and the Chattanooga Mill: Purchase Consideration Cash consideration, net of cash acquired $ 313,362 Fair value of previously held interest in RTS Packaging 59,472 Settlement of preexisting relationships (1,479) Purchase consideration transferred $ 371,355 |
Schedule of Preliminary Fair Value Of Assets Acquired And Measurement Period Adjustments | The provisional fair values of the assets acquired and liabilities assumed in connection with the acquisitions of RTS Packaging and the Chattanooga Mill in total are as follows: Initial Allocation Trade accounts receivable $ 17,488 Inventories 20,209 Prepaid expenses 2,720 Property, plant and equipment 73,483 Right of use asset - operating leases 34,604 Other intangible assets 199,560 Goodwill 92,657 Other net tangible assets 2,465 Payable to suppliers (7,320) Accrued expenses and other (15,167) Notes payable and current portion of long-term debt (24) Noncurrent operating lease liabilities (29,905) Long-term debt (1,942) Deferred income taxes (3,419) Other long-term liabilities (14,054) Net assets acquired $ 371,355 The Company’s initial fair value estimates of the assets acquired and the liabilities assumed in the Skjern acquisition, as well as updated preliminary fair value allocations reflecting adjustments made during the measurement period to date, are as follows: Initial Estimate Measurement Period Adjustments Preliminary Allocation Trade accounts receivable $ 8,055 $ — $ 8,055 Other receivables 193 — 193 Inventories 2,595 14 2,609 Prepaid expenses 349 — 349 Property, plant and equipment 24,334 4,921 29,255 Right of use asset - operating leases 28 — 28 Other intangible assets 42,818 (3,488) 39,330 Goodwill 29,059 2,932 31,991 Payable to suppliers (3,466) (963) (4,429) Accrued expenses and other (1,173) — (1,173) Taxes payable (576) (3,416) (3,992) Noncurrent operating lease liabilities (20) — (20) Deferred income taxes (13,549) — (13,549) Total purchase price, net of cash acquired $ 88,647 $ — $ 88,647 During the three-month period ended April 2, 2023, the Company finalized its valuations of the assets and liabilities assumed in the acquisition of Metal Packaging. As a result, the following measurement period adjustments were made to the previously disclosed provisional fair values of assets acquired and liabilities assumed during the nine-month period ended October 1, 2023: Measurement Period Adjustments Nine Months Ended October 1, 2023 Inventories $ (73) Property, plant and equipment (247) Goodwill 439 Accrued expenses and other (119) Additional cash consideration $ — |
Schedule Of Proforma Supplemental Information | The following table presents the unaudited financial results for Metal Packaging from the prior year date of acquisition through the end of the reporting period ended October 2, 2022: Supplemental Information (unaudited) Three Months Ended January 26 to Metal Packaging October 2, 2022 October 2, 2022 Net sales $ 335,468 $ 798,018 Net income $ 16,769 $ 61,216 The following table presents the Company’s estimated unaudited pro forma consolidated results for the three- and nine-month periods ended October 2, 2022, assuming the acquisition of Metal Packaging had occurred on January 1, 2021. This unaudited pro forma information is presented for informational purposes only and does not purport to represent the results of operations that would have been achieved if the acquisition had been completed at the beginning of 2021, nor is it necessarily indicative of future consolidated results. Pro Forma Supplemental Information (unaudited) Three Months Ended Nine Months Ended Consolidated October 2, 2022 October 2, 2022 Net sales $ 1,890,216 $ 5,624,118 Net income attributable to Sonoco $ 123,047 $ 428,287 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Equity [Abstract] | |
Schedule of Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Numerator: Net income attributable to Sonoco $ 130,749 $ 122,229 $ 393,717 $ 369,234 Denominator: Weighted average common shares outstanding: Basic 98,337 98,013 98,276 97,978 Dilutive effect of share-based compensation 575 749 524 691 Diluted 98,912 98,762 98,800 98,669 Net income attributable to Sonoco per common share: Basic $ 1.33 $ 1.25 $ 4.01 $ 3.77 Diluted $ 1.32 $ 1.24 $ 3.98 $ 3.74 Cash dividends $ 0.51 $ 0.49 $ 1.51 $ 1.43 |
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 1, 2023 and October 2, 2022 were as follows (in thousands): Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Anti-dilutive stock appreciation rights 338 366 341 380 |
Restructuring and Asset Impai_2
Restructuring and Asset Impairments (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of 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 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Restructuring and restructuring-related asset impairment charges $ 18,110 $ 20,652 $ 52,981 $ 33,262 Other asset impairments — — — 10,095 Restructuring/Asset impairment charges $ 18,110 $ 20,652 $ 52,981 $ 43,357 The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred: Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Severance and termination benefits $ 9,736 $ 9,265 $ 19,370 $ 13,578 Asset impairments 6,123 3,301 26,122 4,533 Other costs 2,251 8,086 7,489 15,151 Restructuring and restructuring-related asset impairment charges $ 18,110 $ 20,652 $ 52,981 $ 33,262 The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment: Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Consumer Packaging $ 8,288 $ 4,350 $ 11,792 $ 8,529 Industrial Paper Packaging 6,430 7,674 32,961 10,029 All Other 1,766 18 5,875 (399) Corporate 1,626 8,610 2,353 15,103 Restructuring and restructuring-related asset impairment charges $ 18,110 $ 20,652 $ 52,981 $ 33,262 |
Summary of 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, 2022 $ 14,677 $ — $ 1,392 $ 16,069 2023 charges 19,370 26,122 7,489 52,981 Cash payments (19,552) (166) (6,291) (26,009) Asset writedowns/disposals — (25,956) — (25,956) Foreign currency translation (81) — 9 (72) Liability at October 1, 2023 $ 14,414 $ — $ 2,599 $ 17,013 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Equity [Abstract] | |
Summary of 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-month periods ended October 1, 2023 and October 2, 2022: Foreign Defined Cash Accumulated Balance at December 31, 2022 $ (338,316) $ (90,973) $ (794) $ (430,083) Other comprehensive income/(loss) before reclassifications 3,168 (4,045) 5,111 4,234 Amounts reclassified from accumulated other comprehensive loss to net income 2,033 6,599 (3,193) 5,439 Amounts reclassified from accumulated other comprehensive loss to property, plant, and equipment — — 300 300 Other comprehensive income 5,201 2,554 2,218 9,973 Balance at October 1, 2023 $ (333,115) $ (88,419) $ 1,424 $ (420,110) Balance at December 31, 2021 $ (269,076) $ (91,397) $ 1,048 $ (359,425) Other comprehensive (loss)/income before reclassifications (155,179) (3,948) 4,136 (154,991) Amounts reclassified from accumulated other comprehensive loss to net income 3,747 3,072 (4,286) 2,533 Amounts reclassified from accumulated other comprehensive loss to property, plant, and equipment — — (642) (642) Other comprehensive loss (151,432) (876) (792) (153,100) Balance at October 2, 2022 $ (420,508) $ (92,273) $ 256 $ (512,525) |
Summary of Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss | The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three- and nine-month periods ended October 1, 2023 and October 2, 2022: Amount Reclassified from Accumulated Three Months Ended Nine Months Ended Details about Accumulated Other October 1, October 2, October 1, October 2, Affected Line Item in Foreign currency items Loss on Russia exit (a) $ — $ — $ — $ (3,747) Restructuring/Asset impairment charges Loss on RTS Packaging investment (b) (2,033) — (2,033) — Other income, net (2,033) — (2,033) (3,747) Gains/(losses) on cash flow hedges Foreign exchange contracts (c) 3,195 559 6,772 2,425 Net sales Foreign exchange contracts (c) (1,180) (433) (2,552) (2,139) Cost of sales Commodity contracts (c) — 2,434 (32) 5,371 Cost of sales 2,015 2,560 4,188 5,657 Income before income taxes Income tax impact (558) (473) (995) (1,371) Provision for income taxes 1,457 2,087 3,193 4,286 Net income Defined benefit pension items Pension-related loss upon purchase of remaining interest in RTS Packaging joint venture (b) (4,756) — (4,756) — Other income, net Effect of settlement loss (d) (16) — (765) (430) Non-operating pension costs Amortization of defined benefit pension items (d) (1,103) (1,229) (3,306) (3,655) Non-operating pension costs (5,875) (1,229) (8,827) (4,085) Income before income taxes Income tax impact 1,478 313 2,228 1,013 Provision for income taxes (4,397) (916) (6,599) (3,072) Net income Total reclassifications for the period $ (4,973) $ 1,171 $ (5,439) $ (2,533) Net income (a) See Note 5 for additional details. (b) See Note 3 for additional details. (c) See Note 10 for additional details. (d) See Note 12 for additional details. |
Summary of Before and After Tax Amounts for Comprehensive Income (Loss) Components | The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the three-month periods ended October 1, 2023 and October 2, 2022: Three Months Ended October 1, 2023 Three Months Ended October 2, 2022 Before Tax Tax After Tax Before Tax Tax After Tax Foreign currency items: Net other comprehensive loss from foreign currency items $ (50,389) $ — $ (50,389) $ (81,457) $ — $ (81,457) Amounts reclassified from accumulated other comprehensive loss to net income (a) 2,033 — 2,033 — — — Net other comprehensive loss from foreign currency items (48,356) — (48,356) (81,457) — (81,457) Defined benefit pension items: Other comprehensive (loss)/income before reclassifications (1,137) 141 (996) (74) 19 (55) Amounts reclassified from accumulated other comprehensive loss to net income (a)(b) 5,875 (1,478) 4,397 1,229 (313) 916 Net other comprehensive income/(loss) from defined benefit pension items 4,738 (1,337) 3,401 1,155 (294) 861 Gains and losses on cash flow hedges: Other comprehensive (loss)/income before reclassifications (369) 102 (267) 1,336 (247) 1,089 Amounts reclassified from accumulated other comprehensive loss to net income (c) (2,015) 558 (1,457) (2,560) 473 (2,087) Amounts reclassified from accumulated other comprehensive loss to property, plant and equipment — — — (312) 58 (254) Net other comprehensive (loss)/income from cash flow hedges (2,384) 660 (1,724) (1,536) 284 (1,252) Other comprehensive loss $ (46,002) $ (677) $ (46,679) $ (81,838) $ (10) $ (81,848) (a) See Note 3 for more information on the acquisition of the remaining 65% interest in the RTS Packaging joint venture. (b) See Note 12 for additional details. (c) See Note 10 for additional details. The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the nine-month periods ended October 1, 2023 and October 2, 2022: Nine Months Ended October 1, 2023 Nine Months Ended October 2, 2022 Before Tax Tax After Tax Before Tax Tax After Tax Foreign currency items: Net other comprehensive income/(loss) from foreign currency items $ 3,168 $ — $ 3,168 $ (155,179) $ — $ (155,179) Amounts reclassified from accumulated other comprehensive loss to net income (a)(b) 2,033 — 2,033 3,747 — 3,747 Net other comprehensive income/(loss) from foreign currency items 5,201 — 5,201 (151,432) — (151,432) Defined benefit pension items: Other comprehensive (loss)/income before reclassifications (5,586) 1,541 (4,045) (5,257) 1,309 (3,948) Amounts reclassified from accumulated other comprehensive loss to net income (a)(c) 8,827 (2,228) 6,599 4,085 (1,013) 3,072 Net other comprehensive income/(loss) from defined benefit pension items 3,241 (687) 2,554 (1,172) 296 (876) Gains and losses on cash flow hedges: Other comprehensive income/(loss) before reclassifications 6,511 (1,400) 5,111 5,607 (1,471) 4,136 Amounts reclassified from accumulated other comprehensive loss to net income (d) (4,188) 995 (3,193) (5,657) 1,371 (4,286) Amounts reclassified from accumulated other comprehensive loss to property, plant and equipment 401 (101) 300 (864) 222 (642) Net other comprehensive income/(loss) from cash flow hedges 2,724 (506) 2,218 (914) 122 (792) Other comprehensive income/(loss) $ 11,166 $ (1,193) $ 9,973 $ (153,518) $ 418 $ (153,100) (a) See Note 3 for more information on the 2023 acquisition of the remaining 65% interest in the RTS Packaging joint venture. (b) See Note 5 for more information on the 2022 loss on the exit from Russia. (c) See Note 12 for additional details. (d) See Note 10 for additional details. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of the Changes in Goodwill | A summary of the changes in goodwill for the nine-month period ended October 1, 2023 is as follows: Consumer Industrial Paper Packaging All Other Total Goodwill at December 31, 2022 $ 898,625 $ 394,826 $ 381,860 $ 1,675,311 Acquisitions — 92,657 — 92,657 Divestitures — (6,375) — (6,375) Foreign currency translation (1,022) 1,903 (34) 847 Measurement period adjustments 439 (468) — (29) Goodwill at October 1, 2023 $ 898,042 $ 482,543 $ 381,826 $ 1,762,411 |
Summary of Other Intangible Assets | A summary of other intangible assets as of October 1, 2023 and December 31, 2022 is as follows: October 1, December 31, Other Intangible Assets, gross: Patents $ 45,765 $ 29,303 Customer lists 1,268,759 1,092,232 Trade names 32,783 34,220 Proprietary technology 56,837 57,720 Other 6,169 6,721 Total Other Intangible Assets, gross $ 1,410,313 $ 1,220,196 Accumulated Amortization: Patents $ (19,238) $ (17,889) Customer lists (469,913) (417,034) Trade names (17,328) (15,892) Proprietary technology (27,763) (25,113) Other (2,553) (2,670) Total Accumulated Amortization (536,795) (478,598) Other Intangible Assets, net $ 873,518 $ 741,598 |
Supply Chain Financing (Tables)
Supply Chain Financing (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule Of Supply Chain Financing Program Obligations | The following table sets forth the balance sheet location and values of the Company’s SCF Program obligations at October 1, 2023 and December 31, 2022: Balance Sheet Line Item October 1, 2023 December 31, 2022 Payable to suppliers (a) $ 36,484 $ 52,415 Notes payable and current portion of long-term debt (b) $ — $ 63,448 (a) The payment of these obligations is included in net cash provided by operating activities in the Company’s Condensed Consolidated Statements of Cash Flows. (b) The payment of these obligations is included in net cash used in financing activities in the Company’s Condensed Consolidated Statements of Cash Flows . |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Details of the Company’s debt at October 1, 2023 and December 31, 2022 are as follows: October 1, December 31, 2022 Syndicated term loan due December 2023 $ — $ 399,246 Syndicated term loan due January 2025 — 299,644 Syndicated term loan due August 2028 795,457 — 1.800% notes due February 2025 398,955 398,369 2.250% notes due February 2027 298,293 297,910 2.850% notes due February 2032 495,655 495,264 3.125% notes due May 2030 596,338 595,911 5.750% notes due November 2040 536,238 536,214 Other foreign denominated debt 22,830 20,668 Finance lease obligations 96,054 102,920 Other debt 14,913 76,077 Total debt $ 3,254,733 $ 3,222,223 Less current portion and short-term notes 42,279 502,440 Long-term debt $ 3,212,454 $ 2,719,783 |
Financial Instruments and Der_2
Financial Instruments and Derivatives (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Carrying Amounts and Fair Values of Financial Instruments | The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value. October 1, 2023 December 31, 2022 Carrying Fair Carrying Fair Long-term debt, net of current portion $ 3,212,454 $ 2,930,836 $ 2,719,783 $ 2,477,884 |
Summary of Net Positions of Foreign Contracts | The net positions of these contracts at October 1, 2023 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 8,369,071 Mexican peso purchase 149,124 Polish zloty purchase 24,703 Czech koruna purchase 14,187 Canadian dollar purchase 3,104 Euro purchase 149 Turkish lira purchase 2,635 Brazilian real purchase 1,367 British pound purchase 1,131 |
Summary of Net Positions of Other Derivatives Contracts | The net currency positions of these non-designated contracts at October 1, 2023, were as follows (in thousands): Currency Action Quantity Indonesian rupiah purchase 3,544,012 Colombian peso purchase 67,456,759 Mexican peso purchase 545,248 Turkish lira purchase 8,766 Canadian dollar purchase 11,548 British pound purchase 2,784 Polish zloty purchase 8,526 |
Summary of 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 1, 2023 and December 31, 2022: Description Balance Sheet Location October 1, 2023 December 31, 2022 Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ — $ 10 Commodity Contracts Other assets $ — $ 8 Commodity Contracts Accrued expenses and other $ (137) $ (155) Commodity Contracts Other liabilities $ (10) $ (35) Foreign Exchange Contracts Prepaid expenses $ 2,848 $ 1,251 Foreign Exchange Contracts Accrued expenses and other $ (1,004) $ (2,114) Derivatives not designated as hedging instruments: Commodity Contracts Prepaid expenses $ 5 $ 5 Commodity Contracts Other assets $ 24 $ 251 Commodity Contracts Accrued expenses and other $ (6,763) $ (8,599) Commodity Contracts Other liabilities $ (427) $ (295) Foreign Exchange Contracts Prepaid expenses $ 773 $ 115 Foreign Exchange Contracts Accrued expenses and other $ (456) $ (169) |
Summary of 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-month periods ended October 1, 2023 and October 2, 2022, excluding the amount of 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-month period ended October 1, 2023 Foreign Exchange Contracts $ (509) Net sales $ 3,195 Cost of sales $ (1,180) Commodity Contracts $ 140 Cost of sales $ — Three-month period ended October 2, 2022 Foreign Exchange Contracts $ (290) Net sales $ 559 Cost of sales $ (433) Commodity Contracts $ 1,626 Cost of sales $ 2,434 Description Gain or (Loss) Location of Gain or (Loss) Recognized in Derivatives not Designated as Hedging Instruments: Three-month period ended October 1, 2023 Commodity Contracts $ (2,118) Cost of sales Foreign Exchange Contracts $ 579 Selling, general and administrative Three-month period ended October 2, 2022 Commodity Contracts $ 2,574 Cost of sales Foreign Exchange Contracts $ (484) Selling, general and administrative Three-month period ended October 1, 2023 Three-month period ended October 2, 2022 Description Revenue Cost of Revenue Cost of Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 3,195 $ (1,180) $ 559 $ 2,001 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 $ 3,195 $ (1,180) $ 559 $ (433) Commodity contracts: Amount of gain reclassified from accumulated other comprehensive loss into net income $ — $ — $ — $ 2,434 The following tables set forth the effect of the Company’s derivative instruments on financial performance for the nine months ended October 1, 2023 and October 2, 2022, excluding the amount of 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-month period ended October 1, 2023 Foreign Exchange Contracts $ 6,517 Net sales $ 6,772 Cost of sales $ (2,552) Commodity Contracts $ (6) Cost of sales $ (32) Nine-month period ended October 2, 2022 Foreign Exchange Contracts $ (202) Net sales $ 2,425 Cost of sales $ (2,139) Commodity Contracts $ 5,809 Cost of sales $ 5,371 Description Gain or (Loss) Location of Gain or (Loss) Recognized in Derivatives not Designated as Hedging Instruments: Nine-month period ended October 1, 2023 Commodity Contracts $ (13,635) Cost of sales Foreign Exchange Contracts $ 4,651 Selling, general and administrative Nine-month period ended October 2, 2022 Commodity Contracts $ 10,072 Cost of sales Foreign Exchange Contracts $ (283) Selling, general and administrative Nine-month period ended October 1, 2023 Nine-month period ended October 2, 2022 Description Revenue Cost of Revenue Cost of Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 6,772 $ (2,584) $ 2,425 $ 3,232 Gain or (loss) on cash flow hedging relationships: Foreign exchange contracts: Amount of gain/(loss) reclassified from accumulated other comprehensive income into net income $ 6,772 $ (2,552) $ 2,425 $ (2,139) Commodity contracts: Amount of gain reclassified from accumulated other comprehensive income into net income $ — $ (32) $ — $ 5,371 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of 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 1, 2023 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (147) $ — $ — $ (147) $ — Foreign exchange contracts $ 1,844 $ — $ — $ 1,844 $ — Non-hedge derivatives, net: Commodity contracts $ (7,161) $ — $ — $ (7,161) $ — Foreign exchange contracts $ 317 $ — $ — $ 317 $ — Description December 31, 2022 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (172) $ — $ — $ (172) $ — Foreign exchange contracts $ (863) $ — $ — $ (863) $ — Non-hedge derivatives, net: Commodity contracts $ (8,638) $ — $ — $ (8,638) $ — Foreign exchange contracts $ (54) $ — $ — $ (54) $ — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Retirement Benefits [Abstract] | |
Summary of Components of Net Periodic Benefit Cost/(Income) | The components of net periodic benefit cost/(income) include the following: Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Retirement Plans Service cost $ 704 $ 796 $ 2,083 $ 2,459 Interest cost 4,770 2,593 13,462 7,974 Expected return on plan assets (2,515) (2,527) (7,257) (7,670) Amortization of prior service cost 223 220 669 673 Amortization of net actuarial loss 1,074 1,179 3,221 3,495 Effect of settlement loss 16 — 765 430 Net periodic benefit cost $ 4,272 $ 2,261 $ 12,943 $ 7,361 Retiree Health and Life Insurance Plans Service cost $ 57 $ 80 $ 172 $ 241 Interest cost 127 64 383 194 Expected return on plan assets (78) (110) (235) (332) Amortization of net actuarial gain (194) (170) (584) (513) Net periodic benefit income $ (88) $ (136) $ (264) $ (410) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Leases [Abstract] | |
Summary of Balance Sheet Location and Values of Company's Lease Assets and Lease Liabilities | The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at October 1, 2023 and December 31, 2022: Classification Balance Sheet Location October 1, 2023 December 31, 2022 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 311,642 $ 296,781 Finance lease assets Other Assets 97,863 103,467 Total lease assets $ 409,505 $ 400,248 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 54,526 $ 52,306 Current finance lease liabilities Notes payable and current portion of debt 19,426 19,015 Total current lease liabilities $ 73,952 $ 71,321 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 262,667 $ 250,994 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 76,628 83,905 Total noncurrent lease liabilities $ 339,295 $ 334,899 Total lease liabilities $ 413,247 $ 406,220 |
Summary of 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 1, 2023 and October 2, 2022: Three Months Ended Nine Months Ended Lease Cost October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Operating lease cost (a) $ 14,075 $ 12,863 $ 41,377 $ 38,679 Finance lease cost: Amortization of lease asset (a) 3,468 3,133 10,187 9,122 Interest on lease liabilities (b) 1,146 1,270 3,519 3,517 Variable lease cost (a) (c) 9,525 7,894 30,198 22,416 Impairment charges (d) — 61 — 293 Total lease cost $ 28,214 $ 25,221 $ 85,281 $ 74,027 (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-month periods ended October 1, 2023 and October 2, 2022: Nine Months Ended October 1, 2023 October 2, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 41,406 $ 39,405 Operating cash flows used by finance leases $ 3,519 $ 3,517 Financing cash flows used by finance leases $ 12,359 $ 9,181 Noncash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities $ 11,529 $ 31,048 Leased assets obtained in exchange for new finance lease liabilities $ 5,783 $ 8,224 Modification to leased assets for increase in operating lease liabilities $ 2,357 $ 2,258 Modification to leased assets for increase/(decrease) in finance lease liabilities $ 12 $ (642) Termination reclasses to decrease operating lease assets $ (3,334) $ (4,133) Termination reclasses to decrease operating lease liabilities $ (3,834) $ (4,382) Termination reclasses to decrease finance lease assets $ — $ (1,351) Termination reclasses to decrease finance lease liabilities $ (12) $ (87) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Receivables, Contracts Assets and Liabilities from Contracts With Customers | The following table sets 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 1, 2023 December 31, 2022 Contract Assets $ 59,782 $ 56,008 Contract Liabilities $ (32,481) $ (22,423) Significant changes in the contract assets and liabilities balances during the nine-month period ended October 1, 2023 and the year ended December 31, 2022 were as follows: October 1, 2023 December 31, 2022 Contract Contract Contract Contract Beginning Balance $ 56,008 $ (22,423) $ 51,106 $ (18,993) Acquired as part of a business combination — (1,786) 8,107 (5,418) Revenue deferred or rebates accrued — (35,772) — (57,510) Recognized as revenue 8,236 18,201 Rebates paid to customers — 19,264 — 41,297 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 59,782 — 56,008 — Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combinations (56,008) — (59,213) — Ending Balance $ 59,782 $ (32,481) $ 56,008 $ (22,423) |
Summary of Disaggregation of Revenue | The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended October 1, 2023 and October 2, 2022. The tables also include a reconciliation of disaggregated revenue with reportable segments. The Company’s reportable segments are aligned by product nature as disclosed in Note 16 . Three-month period ended October 1, 2023 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 726,137 $ 335,136 $ 161,600 $ 1,222,873 Europe 116,148 91,175 18,304 225,627 Canada 29,268 24,866 — 54,134 Asia 24,828 59,284 628 84,740 Other 42,026 69,574 11,445 123,045 Total $ 938,407 $ 580,035 $ 191,977 $ 1,710,419 Three-month period ended October 2, 2022 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 837,048 $ 405,382 $ 165,476 $ 1,407,906 Europe 101,665 99,804 19,811 221,280 Canada 30,154 28,471 — 58,625 Asia 25,492 65,475 185 91,152 Other 36,190 62,320 12,743 111,253 Total $ 1,030,549 $ 661,452 $ 198,215 $ 1,890,216 The following tables set forth information about revenue disaggregated by primary geographic regions for the nine-month periods ended October 1, 2023 and October 2, 2022. The tables also include a reconciliation of disaggregated revenue with reportable segments. Nine-month period ended October 1, 2023 Consumer Industrial All Other Total Primary Geographical Markets: United States $ 2,130,895 $ 1,035,849 $ 491,821 $ 3,658,565 Europe 346,287 300,145 62,897 709,329 Canada 89,860 76,029 — 165,889 Asia 73,430 173,903 1,322 248,655 Other 130,818 195,107 37,129 363,054 Total $ 2,771,290 $ 1,781,033 $ 593,169 $ 5,145,492 Nine-month period ended October 2, 2022 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 2,282,559 $ 1,259,348 $ 493,136 $ 4,035,043 Europe 331,745 334,007 66,500 732,252 Canada 89,342 84,952 — 174,294 Asia 74,533 215,896 748 291,177 Other 110,451 193,778 37,535 341,764 Total $ 2,888,630 $ 2,087,981 $ 597,919 $ 5,574,530 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Segment Reporting [Abstract] | |
Summary of Segment Financial Information | SEGMENT FINANCIAL INFORMATION Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 Net sales: Consumer Packaging $ 938,407 $ 1,030,549 $ 2,771,290 $ 2,888,630 Industrial Paper Packaging 580,035 661,452 1,781,033 2,087,981 All Other 191,977 198,215 593,169 597,919 Net sales $ 1,710,419 $ 1,890,216 $ 5,145,492 $ 5,574,530 Intersegment sales: Consumer Packaging $ 2,794 $ 1,663 $ 7,269 $ 5,189 Industrial Paper Packaging 3,032 33,936 77,163 101,072 All Other 1,900 2,532 7,317 7,755 Intersegment sales $ 7,726 $ 38,131 $ 91,749 $ 114,016 Operating profit: Consumer Packaging $ 112,038 $ 127,859 $ 299,083 $ 440,889 Industrial Paper Packaging 75,006 81,859 256,413 248,721 All Other 25,502 15,373 81,409 46,426 Corporate Restructuring/Asset impairment charges (18,110) (20,652) (52,981) (43,357) Amortization of acquisition intangibles (21,379) (20,690) (63,082) (60,361) Other operating income/(charges), net (10,120) (1,807) 59,602 (83,838) Operating profit $ 162,937 $ 181,942 $ 580,444 $ 548,480 |
Basis of Interim Presentation (
Basis of Interim Presentation (Details) | Oct. 01, 2023 | Sep. 08, 2023 |
RTS Packaging | ||
Business Acquisition [Line Items] | ||
Voting interest acquired | 65% | 65% |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Acquisitions Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 08, 2023 USD ($) employee facility paper_mill | Nov. 15, 2022 USD ($) | Aug. 31, 2022 USD ($) manufacturing_plant | Jan. 26, 2022 USD ($) manufacturing_plant | Oct. 01, 2023 USD ($) | Oct. 02, 2022 USD ($) | Oct. 01, 2023 USD ($) | Oct. 02, 2022 USD ($) | Sep. 07, 2023 | Dec. 31, 2022 USD ($) | [1] | |
Business Acquisition [Line Items] | |||||||||||
Cash consideration, net of cash acquired | $ 313,362 | $ 1,337,704 | |||||||||
Goodwill | $ 1,762,411 | $ 1,762,411 | $ 1,675,311 | ||||||||
Cost of sales | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquisition and divestiture-related costs | 33,155 | ||||||||||
RTS Packaging and Chattanooga Mill | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash consideration, net of cash acquired | $ 313,362 | ||||||||||
Approximate number of employees (employee) | employee | 1,100 | ||||||||||
Fair value of previously held interest in RTS Packaging | $ 59,472 | ||||||||||
Goodwill expected to be deductible for income tax purposes | 81,435 | ||||||||||
Total consideration | 371,355 | ||||||||||
Property, plant and equipment | 73,483 | ||||||||||
Other intangible assets | 199,560 | ||||||||||
Goodwill | $ 92,657 | ||||||||||
RTS Packaging and Chattanooga Mill | Industrial Paper Packaging | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of converting operations | facility | 14 | ||||||||||
RTS Packaging and Chattanooga Mill | Industrial Paper Packaging | United States | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of converting operations | facility | 10 | ||||||||||
Number of paper mills acquired | paper_mill | 1 | ||||||||||
RTS Packaging and Chattanooga Mill | Industrial Paper Packaging | Mexico | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of converting operations | facility | 2 | ||||||||||
RTS Packaging and Chattanooga Mill | Industrial Paper Packaging | South America | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of converting operations | facility | 2 | ||||||||||
RTS Packaging | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Voting interest acquired | 65% | 65% | 65% | ||||||||
Interest held in acquiree before subsequent acquisition (percent) | 35% | 35% | |||||||||
Business combination, carrying value | $ 8,654 | ||||||||||
Business combination, net gain | 44,029 | ||||||||||
Accumulated other comprehensive loss including foreign currency translation losses | 2,033 | ||||||||||
Accumulated other comprehensive loss including define pension plan, before tax | 4,756 | ||||||||||
Settlement of unfavorable contract | $ 7,086 | ||||||||||
Skjern | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill expected to be deductible for income tax purposes | $ 0 | ||||||||||
Total consideration | 88,647 | ||||||||||
Property, plant and equipment | 24,334 | $ 29,255 | $ 29,255 | ||||||||
Other intangible assets | 42,818 | 39,330 | 39,330 | ||||||||
Goodwill | $ 29,059 | 31,991 | 31,991 | ||||||||
Nordeste | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total consideration | $ 6,419 | ||||||||||
Number of acquisitions | manufacturing_plant | 2 | ||||||||||
Property, plant and equipment | $ 1,374 | ||||||||||
Other intangible assets | 3,031 | ||||||||||
Goodwill | 2,014 | ||||||||||
Payments to acquire businesses, gross | 3,933 | ||||||||||
Contingent purchase liability | $ 2,486 | ||||||||||
Metal Packaging | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash consideration, net of cash acquired | $ 1,348,589 | ||||||||||
Joint venture, ownership (percent) | 51% | ||||||||||
Number of facilities acquired | manufacturing_plant | 8 | ||||||||||
Acquisition and divestiture-related costs | $ 310 | $ 793 | $ 1,463 | 27,195 | |||||||
Metal Packaging | Cost of sales | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquisition and divestiture-related costs | $ 33,155 | ||||||||||
Ball Corporation | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Joint venture, ownership (percent) | 49% | ||||||||||
[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 (the “United States” or “U.S.”). |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Summary of the Purchase Consideration Transferred for the Acquisitions (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 08, 2023 | Oct. 01, 2023 | Oct. 02, 2022 | |
Business Acquisition [Line Items] | |||
Cash consideration, net of cash acquired | $ 313,362 | $ 1,337,704 | |
RTS Packaging and Chattanooga Mill | |||
Business Acquisition [Line Items] | |||
Cash consideration, net of cash acquired | $ 313,362 | ||
Fair value of previously held interest in RTS Packaging | 59,472 | ||
Settlement of preexisting relationships | (1,479) | ||
Purchase consideration transferred | $ 371,355 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Schedule of Preliminary Fair Value Of Assets Acquired And Measurement Period Adjustments (Details) - USD ($) $ in Thousands | 9 Months Ended | 11 Months Ended | ||||
Oct. 01, 2023 | Oct. 01, 2023 | Sep. 08, 2023 | Dec. 31, 2022 | [1] | Nov. 15, 2022 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Goodwill | $ 1,762,411 | $ 1,762,411 | $ 1,675,311 | |||
Measurement Period Adjustments | ||||||
Goodwill | (29) | |||||
Taxes payable | (3,416) | |||||
RTS Packaging and Chattanooga Mill | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Trade accounts receivable | $ 17,488 | |||||
Inventories | 20,209 | |||||
Prepaid expenses | 2,720 | |||||
Property, plant and equipment | 73,483 | |||||
Right of use asset - operating leases | 34,604 | |||||
Other intangible assets | 199,560 | |||||
Goodwill | 92,657 | |||||
Other net tangible assets | 2,465 | |||||
Payable to suppliers | (7,320) | |||||
Accrued expenses and other | (15,167) | |||||
Notes payable and current portion of long-term debt | (24) | |||||
Noncurrent operating lease liabilities | (29,905) | |||||
Long-term debt | (1,942) | |||||
Deferred income taxes | (3,419) | |||||
Other long-term liabilities | (14,054) | |||||
Total purchase price, net of cash acquired | $ 371,355 | |||||
Skjern | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Trade accounts receivable | 8,055 | 8,055 | $ 8,055 | |||
Other receivables | 193 | 193 | 193 | |||
Inventories | 2,609 | 2,609 | 2,595 | |||
Prepaid expenses | 349 | 349 | 349 | |||
Property, plant and equipment | 29,255 | 29,255 | 24,334 | |||
Right of use asset - operating leases | 28 | 28 | 28 | |||
Other intangible assets | 39,330 | 39,330 | 42,818 | |||
Goodwill | 31,991 | 31,991 | 29,059 | |||
Payable to suppliers | (4,429) | (4,429) | (3,466) | |||
Accrued expenses and other | (1,173) | (1,173) | (1,173) | |||
Taxes payable | (3,992) | (3,992) | (576) | |||
Noncurrent operating lease liabilities | (20) | (20) | (20) | |||
Deferred income taxes | (13,549) | (13,549) | (13,549) | |||
Total purchase price, net of cash acquired | 88,647 | 88,647 | $ 88,647 | |||
Measurement Period Adjustments | ||||||
Inventories | 14 | |||||
Property, plant and equipment | 4,921 | |||||
Other intangible assets | (3,488) | |||||
Goodwill | 2,932 | |||||
Payable to suppliers | (963) | |||||
Additional cash consideration | $ 0 | |||||
Metal Packaging | ||||||
Measurement Period Adjustments | ||||||
Inventories | (73) | |||||
Property, plant and equipment | (247) | |||||
Goodwill | 439 | |||||
Accrued expenses and other | (119) | |||||
Additional cash consideration | $ 0 | |||||
[1]The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (the “United States” or “U.S.”). |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Schedule Of Proforma Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Oct. 02, 2022 | Oct. 02, 2022 | Oct. 02, 2022 | |
Business Acquisition [Line Items] | |||
Net sales | $ 1,890,216 | $ 5,624,118 | |
Net income attributable to Sonoco | 123,047 | $ 428,287 | |
Metal Packaging | |||
Business Acquisition [Line Items] | |||
Net sales | 335,468 | $ 798,018 | |
Net income attributable to Sonoco | $ 16,769 | $ 61,216 |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Divestiture of Businesses (Details) | 3 Months Ended | 9 Months Ended | |||||||||
Oct. 01, 2023 USD ($) | Jul. 03, 2023 USD ($) | Mar. 29, 2023 USD ($) a | Jan. 26, 2023 USD ($) | Oct. 01, 2023 USD ($) | Oct. 02, 2022 USD ($) | Oct. 01, 2023 USD ($) | Oct. 02, 2022 USD ($) | Jun. 30, 2024 USD ($) | Sep. 30, 2023 USD ($) | Jul. 01, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Divestitures | $ 0 | ||||||||||
(Loss)/Gain on divestiture of business and other assets | $ (537,000) | $ 0 | 78,844,000 | $ 0 | |||||||
Disposed of by sale | US BulkSak Business | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Consideration for disposal of business held for sale | $ 20,271,000 | 20,271,000 | 20,271,000 | ||||||||
Proceeds from the sale of business, net | $ 16,808,000 | ||||||||||
Funding of escrow funds | 3,463,000 | 3,463,000 | 3,463,000 | $ 537,000 | |||||||
Write off of assets as part of the sale totaling | 13,437,000 | ||||||||||
Divestitures | 3,333,000 | ||||||||||
(Loss)/Gain on divestiture of business and other assets | $ 6,834,000 | ||||||||||
Disposed of by sale | US BulkSak Business | Other receivables | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from the sale of business, net | 1,463,000 | ||||||||||
Disposed of by sale | US BulkSak Business | Other assets | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from the sale of business, net | 2,000,000 | ||||||||||
Disposed of by sale | US BulkSak Business | Maximum | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Funds held in escrow, term | 18 months | ||||||||||
Disposed of by sale | Mexico BulkSak Business | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Consideration for disposal of business held for sale | $ 1,500,000 | ||||||||||
Proceeds from the sale of business, net | $ 500,000 | ||||||||||
Disposed of by sale | Sonoco Sustainability Solutions Business | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from the sale of business, net | $ 13,839,000 | ||||||||||
Funding of escrow funds | $ 1,500,000 | ||||||||||
Funds held in escrow, term | 20 months | ||||||||||
Write off of assets as part of the sale totaling | $ 4,274,000 | ||||||||||
Divestitures | 3,042,000 | ||||||||||
(Loss)/Gain on divestiture of business and other assets | 11,065,000 | ||||||||||
Contingent consideration from disposal | $ 5,000,000 | ||||||||||
Consideration from disposal, equity interest percentage received | 2.70% | ||||||||||
Disposed of by sale | Sonoco Sustainability Solutions Business | Forecast | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Contingent consideration from disposal | $ 3,200,000 | ||||||||||
Disposed of by sale | Timberland properties | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from the sale of business, net | $ 70,802,000 | ||||||||||
Area of land | a | 55,000 | ||||||||||
Disposed assets net book value | $ 9,857,000 | $ 9,857,000 | 9,857,000 | ||||||||
Gain (loss) on the sale of business | $ 60,945,000 |
Acquisitions and Divestitures_6
Acquisitions and Divestitures - Acquisition, Integration, and Divestiture-Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Business Acquisition [Line Items] | ||||
Acquisition, integration, and divestiture-related costs | $ 12,472 | $ 22,192 | ||
Metal Packaging | ||||
Business Acquisition [Line Items] | ||||
Acquisition, integration, and divestiture-related costs | $ 2,022 | $ 62,655 | ||
Acquisition and divestiture-related costs | 310 | 793 | 1,463 | 27,195 |
Selling, general and administrative | ||||
Business Acquisition [Line Items] | ||||
Acquisition, integration, and divestiture-related costs | 7,525 | 17,245 | ||
Acquisition and divestiture-related costs | $ 2,022 | 29,500 | ||
Cost of sales | ||||
Business Acquisition [Line Items] | ||||
Acquisition, integration, and divestiture-related costs | $ 4,947 | $ 4,947 | ||
Acquisition and divestiture-related costs | 33,155 | |||
Cost of sales | Metal Packaging | ||||
Business Acquisition [Line Items] | ||||
Acquisition and divestiture-related costs | $ 33,155 |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 08, 2023 | Jun. 09, 2023 | Mar. 10, 2023 | Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Numerator: | |||||||
Net income attributable to Sonoco | $ 130,749 | $ 122,229 | $ 393,717 | $ 369,234 | |||
Denominator: | |||||||
Basic (in shares) | 98,337 | 98,013 | 98,276 | 97,978 | |||
Dilutive effect of stock-based compensation (in shares) | 575 | 749 | 524 | 691 | |||
Diluted (in shares) | 98,912 | 98,762 | 98,800 | 98,669 | |||
Net income attributable to Sonoco per common share: | |||||||
Basic (in usd per share) | $ 1.33 | $ 1.25 | $ 4.01 | $ 3.77 | |||
Diluted (in usd per share) | 1.32 | 1.24 | 3.98 | 3.74 | |||
Cash dividends (in usd per share) | $ 0.51 | $ 0.51 | $ 0.49 | $ 0.51 | $ 0.49 | $ 1.51 | $ 1.43 |
Shareholders' Equity - Antidilu
Shareholders' Equity - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Anti-dilutive stock appreciation rights | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock appreciation rights (in shares) | 338 | 366 | 341 | 380 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 08, 2023 $ / shares | Oct. 17, 2023 $ / shares | Sep. 08, 2023 $ / shares | Jul. 19, 2023 $ / shares | Jun. 09, 2023 $ / shares | Apr. 19, 2023 $ / shares | Mar. 10, 2023 $ / shares | Feb. 08, 2023 $ / shares | Mar. 31, 2022 USD ($) partner | Oct. 01, 2023 $ / shares | Oct. 02, 2022 $ / shares | Apr. 03, 2022 USD ($) | Oct. 01, 2023 USD ($) $ / shares shares | Oct. 02, 2022 USD ($) $ / shares shares | Dec. 31, 2022 shares | Dec. 31, 2021 USD ($) | Apr. 20, 2021 USD ($) | Apr. 30, 2015 | |
Class of Stock [Line Items] | ||||||||||||||||||
Number of shares authorized for repurchase | $ 350,000 | |||||||||||||||||
Number of shares available for repurchase | $ 137,972 | |||||||||||||||||
Dividends paid (in usd per share) | $ / shares | $ 0.51 | $ 0.51 | $ 0.49 | $ 0.51 | $ 0.49 | $ 1.51 | $ 1.43 | |||||||||||
Dividend declared and payable (in usd per share) | $ / shares | $ 0.51 | $ 0.51 | $ 0.49 | |||||||||||||||
Payments to noncontrolling interests | $ 0 | $ 14,474 | ||||||||||||||||
Purchase of noncontrolling interest | $ 13,196 | |||||||||||||||||
Forecast | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Dividends paid (in usd per share) | $ / shares | $ 0.51 | |||||||||||||||||
Subsequent Event | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Dividend declared and payable (in usd per share) | $ / shares | $ 0.51 | |||||||||||||||||
Graffo Paranaense de Embalagens S/A | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Ownership percentage by parent | 67% | |||||||||||||||||
Ownership percentage by noncontrolling owners | 33% | |||||||||||||||||
Payments to noncontrolling interests | $ 14,474 | |||||||||||||||||
Number of partners | partner | 3 | |||||||||||||||||
Purchase of noncontrolling interest | $ 6,116 | |||||||||||||||||
Increase (decrease) in accrued liabilities | 1,278 | |||||||||||||||||
Tax Withholding Obligations | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Number of shares repurchased (in shares) | shares | 175,000 | 71,000 | ||||||||||||||||
Cost of shares repurchased | $ 10,605 | $ 4,056 | ||||||||||||||||
Capital in Excess of Stated Value | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Purchase of noncontrolling interest | $ 7,080 | $ 7,080 | ||||||||||||||||
Accelerated Share Repurchase Program | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Number of shares repurchased (in shares) | shares | 0 | 0 |
Restructuring and Asset Impai_3
Restructuring and Asset Impairments - 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. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | $ 18,110 | $ 20,652 | $ 52,981 | $ 33,262 |
Other asset impairments | 0 | 0 | 0 | 10,095 |
Restructuring/Asset impairment charges | 18,110 | 20,652 | 52,981 | 43,357 |
Consumer Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other asset impairments | 930 | |||
All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other asset impairments | 9,165 | |||
Operating Segments | Consumer Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 8,288 | 4,350 | 11,792 | 8,529 |
Operating Segments | Industrial Paper Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 6,430 | 7,674 | 32,961 | 10,029 |
Operating Segments | All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 1,766 | 18 | 5,875 | (399) |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 1,626 | 8,610 | 2,353 | 15,103 |
Severance and termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 9,736 | 9,265 | 19,370 | 13,578 |
Asset impairments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 6,123 | 3,301 | 26,122 | 4,533 |
Other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | $ 2,251 | $ 8,086 | $ 7,489 | $ 15,151 |
Restructuring and Asset Impai_4
Restructuring and Asset Impairments - Restructuring Accrual Activity (Details) $ in Thousands | 9 Months Ended |
Oct. 01, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2022 | $ 16,069 |
2023 charges | 52,981 |
Cash payments | (26,009) |
Asset writedowns/disposals | (25,956) |
Foreign currency translation | (72) |
Liability at October 1, 2023 | 17,013 |
Severance and Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2022 | 14,677 |
2023 charges | 19,370 |
Cash payments | (19,552) |
Asset writedowns/disposals | 0 |
Foreign currency translation | (81) |
Liability at October 1, 2023 | 14,414 |
Asset Impairments/ Disposal of Assets | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2022 | 0 |
2023 charges | 26,122 |
Cash payments | (166) |
Asset writedowns/disposals | (25,956) |
Foreign currency translation | 0 |
Liability at October 1, 2023 | 0 |
Other Costs | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2022 | 1,392 |
2023 charges | 7,489 |
Cash payments | (6,291) |
Asset writedowns/disposals | 0 |
Foreign currency translation | 9 |
Liability at October 1, 2023 | $ 2,599 |
Restructuring and Asset Impai_5
Restructuring and Asset Impairments - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 01, 2022 USD ($) | Oct. 01, 2023 USD ($) employee | Oct. 02, 2022 USD ($) | Oct. 01, 2023 USD ($) employee | Oct. 02, 2022 USD ($) manufacturing_plant | |
Restructuring Cost and Reserve [Line Items] | |||||
Future additional charges expected to be recognized | $ 2,300 | $ 2,300 | |||
Other asset impairments | $ 0 | $ 0 | $ 0 | $ 10,095 | |
Purchase of noncontrolling interest | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other asset impairments | $ 3,747 | ||||
All Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other asset impairments | $ 9,165 | ||||
Industrial Paper Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of small tube and core plants | manufacturing_plant | 2 | ||||
Consumer Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other asset impairments | $ 930 | ||||
Organizational effectiveness efforts | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of eliminated positions (position) | employee | 300 | 300 |
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. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | $ 2,299,322 | $ 1,936,391 | $ 2,072,797 | [1] | $ 1,849,541 |
Other comprehensive income/(loss) | (47,347) | (82,363) | 9,246 | (153,248) | |
Ending balance | 2,339,155 | 1,935,081 | 2,339,155 | 1,935,081 | |
Foreign Currency Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (338,316) | (269,076) | |||
Other comprehensive income/(loss) before reclassifications | 3,168 | (155,179) | |||
Other comprehensive income/(loss) | 5,201 | (151,432) | |||
Ending balance | (333,115) | (420,508) | (333,115) | (420,508) | |
Foreign Currency Items | Property, Plant and Equipment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss net of tax | 0 | 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 | 2,033 | 3,747 | |||
Defined Benefit Pension Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (90,973) | (91,397) | |||
Other comprehensive income/(loss) before reclassifications | (4,045) | (3,948) | |||
Other comprehensive income/(loss) | 2,554 | (876) | |||
Ending balance | (88,419) | (92,273) | (88,419) | (92,273) | |
Defined Benefit Pension Items | Property, Plant and Equipment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss net of tax | 0 | 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 | 6,599 | 3,072 | |||
Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (794) | 1,048 | |||
Other comprehensive income/(loss) before reclassifications | 5,111 | 4,136 | |||
Other comprehensive income/(loss) | 2,218 | (792) | |||
Ending balance | 1,424 | 256 | 1,424 | 256 | |
Cash Flow Hedges | Property, Plant and Equipment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss net of tax | 300 | (642) | |||
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 | (3,193) | (4,286) | |||
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (430,083) | (359,425) | |||
Other comprehensive income/(loss) before reclassifications | 4,234 | (154,991) | |||
Other comprehensive income/(loss) | 9,973 | (153,100) | |||
Ending balance | $ (420,110) | $ (512,525) | (420,110) | (512,525) | |
Accumulated Other Comprehensive Loss | Property, Plant and Equipment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss net of tax | 300 | (642) | |||
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 | $ 5,439 | $ 2,533 | |||
[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 (the “United States” or “U.S.”). |
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. 01, 2023 | Jul. 02, 2023 | Apr. 02, 2023 | Oct. 02, 2022 | Jul. 03, 2022 | Apr. 03, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Restructuring/Asset impairment charges | $ (18,110) | $ (20,652) | $ (52,981) | $ (43,357) | ||||
Other income, net | 36,943 | 0 | 36,943 | 0 | ||||
Net sales | 1,710,419 | 1,890,216 | 5,145,492 | 5,574,530 | ||||
Cost of sales | (1,346,163) | (1,523,070) | (4,049,490) | (4,448,818) | ||||
(Loss)/Income before income taxes | 166,782 | 155,127 | 512,279 | 476,437 | ||||
Provision for income taxes | (39,351) | (36,824) | (127,003) | (116,712) | ||||
Net income/(loss) | 131,058 | $ 114,749 | $ 148,264 | 122,502 | $ 131,767 | $ 115,607 | 394,071 | 369,876 |
Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net sales | 3,195 | 559 | 6,772 | 2,425 | ||||
Cost of sales | (1,180) | 2,001 | (2,584) | 3,232 | ||||
Net income/(loss) | (4,973) | 1,171 | (5,439) | (2,533) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Items | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Restructuring/Asset impairment charges | 0 | 0 | 0 | (3,747) | ||||
Other income, net | 2,033 | 0 | 2,033 | 0 | ||||
Net income/(loss) | 2,033 | 0 | 2,033 | 3,747 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
(Loss)/Income before income taxes | 2,015 | 2,560 | 4,188 | 5,657 | ||||
Provision for income taxes | (558) | (473) | (995) | (1,371) | ||||
Net income/(loss) | 1,457 | 2,087 | 3,193 | 4,286 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | Foreign exchange contracts | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net sales | 3,195 | 559 | 6,772 | 2,425 | ||||
Cost of sales | (1,180) | (433) | (2,552) | (2,139) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | Foreign exchange contracts | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net sales | 0 | 0 | 0 | 0 | ||||
Cost of sales | 0 | 2,434 | (32) | 5,371 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Pension Items | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
(Loss)/Income before income taxes | (5,875) | (1,229) | (8,827) | (4,085) | ||||
Provision for income taxes | 1,478 | 313 | 2,228 | 1,013 | ||||
Net income/(loss) | (4,397) | (916) | (6,599) | (3,072) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Pension-related loss upon purchase of remaining interest in RTS Packaging joint venture | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Other income, net | (4,756) | 0 | (4,756) | 0 | ||||
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 | (16) | 0 | (765) | (430) | ||||
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 | $ (1,103) | $ (1,229) | $ (3,306) | $ (3,655) |
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. 01, 2023 | Jul. 02, 2023 | Apr. 02, 2023 | Oct. 02, 2022 | Jul. 03, 2022 | Apr. 03, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | Sep. 08, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other comprehensive (loss) income | $ (47,347) | $ 21,355 | $ 35,238 | $ (82,363) | $ (74,332) | $ 3,447 | |||
RTS Packaging | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Voting interest acquired | 65% | 65% | 65% | ||||||
Foreign Currency Items | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other comprehensive (loss)/income before reclassifications before tax | $ (50,389) | (81,457) | $ 3,168 | $ (155,179) | |||||
Other comprehensive (loss)/income before reclassifications, tax | 0 | 0 | 0 | 0 | |||||
Other comprehensive (loss)/income before reclassifications, net of tax | (50,389) | (81,457) | 3,168 | (155,179) | |||||
Other comprehensive income/(loss) before tax | (48,356) | (81,457) | 5,201 | (151,432) | |||||
Other comprehensive income/(loss), tax | 0 | 0 | 0 | 0 | |||||
Other comprehensive (loss) income | (48,356) | (81,457) | 5,201 | (151,432) | |||||
Foreign Currency Items | Net Income | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 2,033 | 0 | 2,033 | 3,747 | |||||
Amounts reclassified from accumulated other comprehensive income/(loss), tax | 0 | 0 | 0 | 0 | |||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 2,033 | 0 | 2,033 | 3,747 | |||||
Defined benefit pension items | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other comprehensive (loss)/income before reclassifications before tax | (1,137) | (74) | (5,586) | (5,257) | |||||
Other comprehensive (loss)/income before reclassifications, tax | 141 | 19 | 1,541 | 1,309 | |||||
Other comprehensive (loss)/income before reclassifications, net of tax | (996) | (55) | (4,045) | (3,948) | |||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 8,827 | 4,085 | |||||||
Amounts reclassified from accumulated other comprehensive income/(loss), tax | (2,228) | (1,013) | |||||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 6,599 | 3,072 | |||||||
Other comprehensive income/(loss) before tax | 4,738 | 1,155 | 3,241 | (1,172) | |||||
Other comprehensive income/(loss), tax | (1,337) | (294) | (687) | 296 | |||||
Other comprehensive (loss) income | 3,401 | 861 | 2,554 | (876) | |||||
Defined benefit pension items | Net Income | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 5,875 | 1,229 | |||||||
Amounts reclassified from accumulated other comprehensive income/(loss), tax | (1,478) | (313) | |||||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 4,397 | 916 | |||||||
Cash Flow Hedges | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other comprehensive (loss)/income before reclassifications before tax | (369) | 1,336 | 6,511 | 5,607 | |||||
Other comprehensive (loss)/income before reclassifications, tax | 102 | (247) | (1,400) | (1,471) | |||||
Other comprehensive (loss)/income before reclassifications, net of tax | (267) | 1,089 | 5,111 | 4,136 | |||||
Other comprehensive income/(loss) before tax | (2,384) | (1,536) | 2,724 | (914) | |||||
Other comprehensive income/(loss), tax | 660 | 284 | (506) | 122 | |||||
Other comprehensive (loss) income | (1,724) | (1,252) | 2,218 | (792) | |||||
Cash Flow Hedges | Property, Plant and Equipment | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 0 | (312) | 401 | (864) | |||||
Amounts reclassified from accumulated other comprehensive income/(loss), tax | 0 | 58 | (101) | 222 | |||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 0 | (254) | 300 | (642) | |||||
Cash Flow Hedges | Net Income | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | (2,015) | (2,560) | (4,188) | (5,657) | |||||
Amounts reclassified from accumulated other comprehensive income/(loss), tax | 558 | 473 | 995 | 1,371 | |||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | (1,457) | (2,087) | (3,193) | (4,286) | |||||
Other comprehensive loss | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other comprehensive income/(loss) before tax | (46,002) | (81,838) | 11,166 | (153,518) | |||||
Other comprehensive income/(loss), tax | (677) | (10) | (1,193) | 418 | |||||
Other comprehensive (loss) income | $ (46,679) | $ 21,653 | $ 34,999 | $ (81,848) | $ (73,808) | $ 2,556 | $ 9,973 | $ (153,100) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Goodwill by Segment (Details) $ in Thousands | 9 Months Ended | |
Oct. 01, 2023 USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,675,311 | [1] |
Acquisitions | 92,657 | |
Divestitures | (6,375) | |
Foreign currency translation | 847 | |
Measurement period adjustments | (29) | |
Goodwill, ending balance | 1,762,411 | |
Consumer Packaging | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 898,625 | |
Acquisitions | 0 | |
Divestitures | 0 | |
Foreign currency translation | (1,022) | |
Measurement period adjustments | 439 | |
Goodwill, ending balance | 898,042 | |
Industrial Paper Packaging | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 394,826 | |
Acquisitions | 92,657 | |
Divestitures | (6,375) | |
Foreign currency translation | 1,903 | |
Measurement period adjustments | (468) | |
Goodwill, ending balance | 482,543 | |
All Other | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 381,860 | |
Acquisitions | 0 | |
Divestitures | 0 | |
Foreign currency translation | (34) | |
Measurement period adjustments | 0 | |
Goodwill, ending balance | $ 381,826 | |
[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 (the “United States” or “U.S.”). |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 08, 2023 | Jul. 01, 2023 | Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | Dec. 31, 2022 | [1] | |
Goodwill [Line Items] | ||||||||
Impairment of goodwill | $ 0 | |||||||
Goodwill | $ 1,762,411,000 | 1,762,411,000 | $ 1,675,311,000 | |||||
Indefinite-lived intangible assets | 0 | 0 | ||||||
Aggregate amortization expense | 21,379,000 | $ 20,690,000 | 63,082,000 | $ 60,361,000 | ||||
Amortization expense on other intangible assets in 2023 | 85,000,000 | 85,000,000 | ||||||
Amortization expense on other intangible assets in 2024 | 84,200,000 | 84,200,000 | ||||||
Amortization expense on other intangible assets in 2025 | 75,700,000 | 75,700,000 | ||||||
Amortization expense on other intangible assets in 2026 | 73,200,000 | 73,200,000 | ||||||
Amortization expense on other intangible assets in 2027 | $ 70,200,000 | $ 70,200,000 | ||||||
Minimum | Other | ||||||||
Goodwill [Line Items] | ||||||||
Useful lives of intangible asset | 3 years | 3 years | ||||||
Maximum | Other | ||||||||
Goodwill [Line Items] | ||||||||
Useful lives of intangible asset | 40 years | 40 years | ||||||
BulkSak Businesses | ||||||||
Goodwill [Line Items] | ||||||||
Write off of assets as part of the sale totaling | $ 2,704,000 | |||||||
RTS Packaging and Chattanooga Mill | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | $ 92,657,000 | |||||||
Other intangible assets | $ 199,560,000 | |||||||
Weighted average useful life | 17 years 6 months | |||||||
Plastics - Medical Reporting Unit | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | $ 62,627,000 | $ 62,627,000 | ||||||
Excess of fair value of reporting unit over carrying value (percent) | 29.90% | 29.90% | ||||||
Plastics - Medical Reporting Unit | Discount Rate | ||||||||
Goodwill [Line Items] | ||||||||
Discount rate (percent) | 12% | 12% | ||||||
Change necessary in order for estimated fair value to fall below carrying value (percent) | 14.50% | 14.50% | ||||||
[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 (the “United States” or “U.S.”). |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 01, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total Other Intangible Assets, gross | $ 1,410,313 | $ 1,220,196 | |
Total Accumulated Amortization | (536,795) | (478,598) | |
Other Intangible Assets, net | 873,518 | 741,598 | [1] |
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Other Intangible Assets, gross | 45,765 | 29,303 | |
Total Accumulated Amortization | (19,238) | (17,889) | |
Customer lists | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Other Intangible Assets, gross | 1,268,759 | 1,092,232 | |
Total Accumulated Amortization | (469,913) | (417,034) | |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Other Intangible Assets, gross | 32,783 | 34,220 | |
Total Accumulated Amortization | (17,328) | (15,892) | |
Proprietary technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Other Intangible Assets, gross | 56,837 | 57,720 | |
Total Accumulated Amortization | (27,763) | (25,113) | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Other Intangible Assets, gross | 6,169 | 6,721 | |
Total Accumulated Amortization | $ (2,553) | $ (2,670) | |
[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 (the “United States” or “U.S.”). |
Supply Chain Financing (Details
Supply Chain Financing (Details) - USD ($) $ in Thousands | Oct. 01, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Payable to suppliers | $ 36,484 | $ 52,415 |
Notes payable and current portion of long-term debt | $ 0 | $ 63,448 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Oct. 01, 2023 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | ||
Finance lease obligations | $ 96,054 | $ 102,920 |
Total debt | 3,254,733 | 3,222,223 |
Less current portion and short-term notes | 42,279 | 502,440 |
Long-term debt | 3,212,454 | 2,719,783 |
Syndicated Term Loan Due December 2023 | ||
Line of Credit Facility [Line Items] | ||
Debt | 0 | 399,246 |
Syndicated Term Loan Due January 2025 | ||
Line of Credit Facility [Line Items] | ||
Debt | 0 | 299,644 |
Syndicated Term Loan Due August 2028 | ||
Line of Credit Facility [Line Items] | ||
Debt | $ 795,457 | 0 |
1.800% notes due February 2025 | ||
Line of Credit Facility [Line Items] | ||
Interest rate (percent) | 1.80% | |
Debt | $ 398,955 | 398,369 |
2.250% notes due February 2027 | ||
Line of Credit Facility [Line Items] | ||
Interest rate (percent) | 2.25% | |
Debt | $ 298,293 | 297,910 |
2.850% notes due February 2032 | ||
Line of Credit Facility [Line Items] | ||
Interest rate (percent) | 2.85% | |
Debt | $ 495,655 | 495,264 |
3.125% Notes Due May 2030 | ||
Line of Credit Facility [Line Items] | ||
Interest rate (percent) | 3.125% | |
Debt | $ 596,338 | 595,911 |
5.750% notes due November 2040 | ||
Line of Credit Facility [Line Items] | ||
Interest rate (percent) | 5.75% | |
Debt | $ 536,238 | 536,214 |
Other foreign denominated debt | ||
Line of Credit Facility [Line Items] | ||
Debt | 22,830 | 20,668 |
Other debt | ||
Line of Credit Facility [Line Items] | ||
Debt | $ 14,913 | $ 76,077 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Oct. 01, 2023 | Sep. 08, 2023 | Aug. 07, 2023 | Jun. 30, 2021 |
Syndicated Term Loan Due August 2028 | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 900,000,000 | |||
Proceeds from lines of credit | $ 270,000,000 | $ 600,000,000 | ||
Repayments of credit facility | $ 70,000,000 | |||
SOFR | Syndicated Term Loan Due August 2028 | ||||
Line of Credit Facility [Line Items] | ||||
Basis points, adjustment (percent) | 0.10% | |||
Basis points (percent) | 1.90% | |||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 900,000,000 | $ 750,000,000 | ||
Debt term | 5 years | |||
Line of credit facility, Increase in commitment | $ 150,000,000 |
Financial Instruments and Der_3
Financial Instruments and Derivatives - Carrying Amount and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Oct. 01, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net of current portion | $ 3,212,454 | $ 2,719,783 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net of current portion | $ 2,930,836 | $ 2,477,884 |
Financial Instruments and Der_4
Financial Instruments and Derivatives - Additional Information (Details) | 9 Months Ended | |||
Jan. 11, 2022 USD ($) | Oct. 01, 2023 USD ($) MMBTU t | Dec. 31, 2022 USD ($) | Jan. 21, 2022 USD ($) bank | |
Derivative [Line Items] | ||||
Derivative instrument, number of counter-parties | bank | 2 | |||
Gain on the settlement recognized | $ 5,201,000 | |||
Total fair value of other derivatives not designated as hedging instruments | $ (6,844,000) | $ (8,692,000) | ||
Unsecured Debt | ||||
Derivative [Line Items] | ||||
Debt | $ 150,000,000 | |||
2.850% notes due February 2032 | ||||
Derivative [Line Items] | ||||
Interest rate (percent) | 2.85% | |||
Debt | $ 495,655,000 | 495,264,000 | ||
2.850% notes due February 2032 | Unsecured Debt | ||||
Derivative [Line Items] | ||||
Interest rate (percent) | 2.85% | |||
Debt principal | $ 500,000,000 | |||
Cash Flow Hedging | Derivatives Designated as Hedging Instruments | ||||
Derivative [Line Items] | ||||
Fair value of commodity cash flow hedges, loss | (147,000) | (172,000) | ||
Commodity loss expected to be reclassified to the income statement during the next 12 months | (137,000) | |||
Fair value of foreign currency cash flow hedges, gain (loss) | 1,844,000 | (299,000) | ||
Foreign currency gains (loss) expected to be reclassified to the income statement during the next 12 months | $ 1,844,000 | |||
Natural Gas Swaps | Derivatives Designated as Hedging Instruments | ||||
Derivative [Line Items] | ||||
Approximate amount of commodity covered by swap contracts outstanding (in MMBTUs) | MMBTU | 5,500,000 | |||
Anticipated usage percentage covered by a swap contract for the next fiscal year (percent) | 76% | |||
Anticipated usage percentage covered by a swap contract for year two (percent) | 55% | |||
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 | 80,000 | |||
Anticipated usage percentage covered by a swap contract for the current fiscal year (percent) | 0.90% | |||
Approximate amount of commodity covered by swap contracts outstanding (in tons) | t | 179 | |||
Forward contracts | Cash Flow Hedging | Derivatives Designated as Hedging Instruments | ||||
Derivative [Line Items] | ||||
Fair value of foreign currency cash flow hedges, gain (loss) | $ 0 | $ (564,000) | ||
Foreign currency gains (loss) expected to be reclassified to the income statement during the next 12 months | 0 | |||
Foreign currency loss reclassified to the income statement | $ (401,000) |
Financial Instruments and Der_5
Financial Instruments and Derivatives - Net Positions of Foreign Contracts (Details) - Oct. 01, 2023 ₺ in Thousands, € in Thousands, £ in Thousands, zł in Thousands, R$ in Thousands, Kč in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | COP ($) | MXN ($) | PLN (zł) | CZK (Kč) | CAD ($) | EUR (€) | TRY (₺) | BRL (R$) | GBP (£) |
Cash Flow Hedging | Derivatives Designated as Hedging Instruments | Purchase | |||||||||
Derivative [Line Items] | |||||||||
Net purchase/(sell) position of derivatives | $ 8,369,071 | $ 149,124 | zł 24,703 | Kč 14,187 | $ 3,104 | € 149 | ₺ 2,635 | R$ 1367 | £ 1,131 |
Financial Instruments and Der_6
Financial Instruments and Derivatives - Net Positions of Foreign Contracts Non-Designated Derivatives (Details) - Oct. 01, 2023 ₺ in Thousands, £ in Thousands, zł in Thousands, Rp in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | COP ($) | MXN ($) | PLN (zł) | CAD ($) | TRY (₺) | GBP (£) | IDR (Rp) |
Derivatives Not Designated as Hedging Instruments | Purchase | |||||||
Derivative [Line Items] | |||||||
Purchase position of derivatives | $ 67,456,759 | $ 545,248 | zł 8,526 | $ 11,548 | ₺ 8,766 | £ 2,784 | Rp 3,544,012 |
Financial Instruments and Der_7
Financial Instruments and Derivatives - Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Oct. 01, 2023 | Dec. 31, 2022 |
Prepaid expenses | Commodity Contract | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 0 | $ 10 |
Prepaid expenses | Commodity Contract | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 5 | 5 |
Prepaid expenses | Foreign Exchange Contract | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 2,848 | 1,251 |
Prepaid expenses | Foreign Exchange Contract | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 773 | 115 |
Other assets | Commodity Contract | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 8 |
Other assets | Commodity Contract | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 24 | 251 |
Accrued expenses and other | Commodity Contract | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (137) | (155) |
Accrued expenses and other | Commodity Contract | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (6,763) | (8,599) |
Accrued expenses and other | Foreign Exchange Contract | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (1,004) | (2,114) |
Accrued expenses and other | Foreign Exchange Contract | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (456) | (169) |
Other liabilities | Commodity Contract | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (10) | (35) |
Other liabilities | Commodity Contract | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ (427) | $ (295) |
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. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Foreign Exchange Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | $ (509) | $ (290) | $ 6,517 | $ (202) |
Foreign Exchange Contract | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized | 579 | (484) | 4,651 | (283) |
Foreign Exchange Contract | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | 3,195 | 559 | 6,772 | 2,425 |
Foreign Exchange Contract | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | (1,180) | (433) | (2,552) | (2,139) |
Commodity Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | 140 | 1,626 | (6) | 5,809 |
Commodity Contract | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized | (2,118) | 2,574 | (13,635) | 10,072 |
Commodity Contract | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | $ 0 | $ 2,434 | $ (32) | $ 5,371 |
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. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | $ 1,710,419 | $ 1,890,216 | $ 5,145,492 | $ 5,574,530 |
Cost of sales | (1,346,163) | (1,523,070) | (4,049,490) | (4,448,818) |
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | 3,195 | 559 | 6,772 | 2,425 |
Cost of sales | (1,180) | 2,001 | (2,584) | 3,232 |
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | Foreign Exchange Contract | Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | 3,195 | 559 | 6,772 | 2,425 |
Cost of sales | (1,180) | (433) | (2,552) | (2,139) |
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | Commodity Contract | Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Cost of sales | $ 0 | $ 2,434 | $ (32) | $ 5,371 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands | Oct. 01, 2023 | Dec. 31, 2022 |
Commodity Contract | Derivatives Designated as Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ (147) | $ (172) |
Commodity Contract | Derivatives Designated as Hedging Instruments | Assets measured at NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Commodity Contract | Derivatives Designated as Hedging Instruments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Commodity Contract | Derivatives Designated as Hedging Instruments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (147) | (172) |
Commodity Contract | Derivatives Designated as Hedging Instruments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Commodity Contract | Derivatives Not Designated as Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (7,161) | (8,638) |
Commodity Contract | Derivatives Not Designated as Hedging Instruments | Assets measured at NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Commodity Contract | Derivatives Not Designated as Hedging Instruments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Commodity Contract | Derivatives Not Designated as Hedging Instruments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (7,161) | (8,638) |
Commodity Contract | Derivatives Not Designated as Hedging Instruments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Foreign Exchange Contract | Derivatives Designated as Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 1,844 | (863) |
Foreign Exchange Contract | Derivatives Designated as Hedging Instruments | Assets measured at NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Foreign Exchange Contract | Derivatives Designated as Hedging Instruments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Foreign Exchange Contract | Derivatives Designated as Hedging Instruments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 1,844 | (863) |
Foreign Exchange Contract | Derivatives Designated as Hedging Instruments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Foreign Exchange Contract | Derivatives Not Designated as Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 317 | (54) |
Foreign Exchange Contract | Derivatives Not Designated as Hedging Instruments | Assets measured at NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Foreign Exchange Contract | Derivatives Not Designated as Hedging Instruments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Foreign Exchange Contract | Derivatives Not Designated as Hedging Instruments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 317 | (54) |
Foreign Exchange Contract | Derivatives Not Designated as Hedging Instruments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ 0 | $ 0 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Retirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 704 | $ 796 | $ 2,083 | $ 2,459 |
Interest cost | 4,770 | 2,593 | 13,462 | 7,974 |
Expected return on plan assets | (2,515) | (2,527) | (7,257) | (7,670) |
Amortization of prior service cost | 223 | 220 | 669 | 673 |
Amortization of net actuarial loss | 1,074 | 1,179 | 3,221 | 3,495 |
Effect of settlement loss | 16 | 0 | 765 | 430 |
Net periodic benefit cost | 4,272 | 2,261 | 12,943 | 7,361 |
Retiree Health and Life Insurance Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 57 | 80 | 172 | 241 |
Interest cost | 127 | 64 | 383 | 194 |
Expected return on plan assets | (78) | (110) | (235) | (332) |
Amortization of net actuarial loss | (194) | (170) | (584) | (513) |
Net periodic benefit cost | $ (88) | $ (136) | $ (264) | $ (410) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Jan. 01, 2022 | Dec. 31, 2021 | Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | Sep. 08, 2023 | Sep. 07, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Contributions | $ 10,311,000 | $ 11,600,000 | ||||||
Expected contributions for remainder of fiscal year | $ 4,400,000 | $ 4,400,000 | ||||||
RTS Packaging | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Voting interest acquired | 65% | 65% | 65% | |||||
Interest held in acquiree before subsequent acquisition (percent) | 35% | 35% | ||||||
Accumulated other comprehensive loss including define pension plan, before tax | $ 4,756,000 | |||||||
Accumulated other comprehensive loss including define pension plan, after tax | 3,543,000 | |||||||
Retirement Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Settlement losses recognized | $ 16,000 | $ 0 | $ 765,000 | 430,000 | ||||
Sonoco Pension Plan for Inactive Participants | Retirement Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Settlement losses recognized | 765,000 | 430,000 | ||||||
RTS Packaging Pension Plan | Retirement Plans | United States | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined benefit plan, benefit obligation | 43,547,000 | |||||||
Deferred compensation plan assets | $ 33,109,000 | |||||||
Defined benefit plan, unfunded status obligation | 10,438,000 | $ 10,438,000 | ||||||
Sonoco Savings Plan | United States | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Contribution percentage minimum (percent) | 1% | |||||||
Contribution percentage maximum (percent) | 100% | |||||||
Defined contribution plan, employer matching contribution (percent) | 100% | 50% | ||||||
Employer matching contribution, percent of employees' gross pay (percent) | 6% | 4% | ||||||
Sonoco Retirement Contribution | Retirement Plans | United States | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Contributions | $ 21,948,000 | |||||||
Expected contributions for remainder of fiscal year | $ 0 | $ 0 | ||||||
Employer matching contribution, percent of employees' gross pay (percent) | 4% | |||||||
Employer matching contribution, percent of employees' gross pay in excess of social security (percent) | 4% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 23.60% | 23.70% | 24.80% | 24.50% |
Increase of uncertain tax benefits | $ 2,613 | |||
Possible decrease in reserve for unrecognized tax benefits | $ 878 | $ 878 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 9 Months Ended | |||
Oct. 01, 2023 USD ($) option | Sep. 08, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 26, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Number of renewal options | option | 1 | |||
Lease term | 10 years | |||
Finance lease obligations | $ 96,054 | $ 102,920 | ||
RTS Packaging and Chattanooga Mill | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease liabilities | $ 34,604 | |||
Metal Packaging | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease liabilities | $ 33,910 | |||
Finance lease obligations | $ 46,687 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease renewal terms | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease renewal terms | 5 years |
Leases - Balance Sheet Location
Leases - Balance Sheet Location and Values of Lease Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Oct. 01, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | |||
Operating lease assets | $ 311,642 | $ 296,781 | [1] |
Finance lease assets | 97,863 | 103,467 | |
Total lease assets | 409,505 | 400,248 | |
Current operating lease liabilities | 54,526 | 52,306 | |
Current finance lease liabilities | 19,426 | 19,015 | |
Total current lease liabilities | 73,952 | 71,321 | |
Noncurrent operating lease liabilities | 262,667 | 250,994 | [1] |
Noncurrent finance lease liabilities | 76,628 | 83,905 | |
Total noncurrent lease liabilities | 339,295 | 334,899 | |
Total lease liabilities | $ 413,247 | $ 406,220 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other | Accrued expenses and other | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Notes payable and current portion of long-term debt | 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 | 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 (the “United States” or “U.S.”). |
Leases - Components of Company'
Leases - Components of Company's Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 14,075 | $ 12,863 | $ 41,377 | $ 38,679 |
Amortization of lease asset | 3,468 | 3,133 | 10,187 | 9,122 |
Interest on lease liabilities | 1,146 | 1,270 | 3,519 | 3,517 |
Variable lease cost | 9,525 | 7,894 | 30,198 | 22,416 |
Impairment charges | 0 | 61 | 0 | 293 |
Total lease cost | $ 28,214 | $ 25,221 | $ 85,281 | $ 74,027 |
Leases - Other Lease Related In
Leases - Other Lease Related Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2023 | Oct. 02, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used by operating leases | $ 41,406 | $ 39,405 |
Operating cash flows used by finance leases | 3,519 | 3,517 |
Financing cash flows used by finance leases | 12,359 | 9,181 |
Leased assets obtained in exchange for new operating lease liabilities | 11,529 | 31,048 |
Leased assets obtained in exchange for new finance lease liabilities | 5,783 | 8,224 |
Modification to leased assets for increase in operating lease liabilities | 2,357 | 2,258 |
Modification to leased assets for increase/(decrease) in finance lease liabilities | 12 | (642) |
Termination reclasses to decrease operating lease assets | (3,334) | (4,133) |
Termination reclasses to decrease operating lease liabilities | (3,834) | (4,382) |
Termination reclasses to decrease finance lease assets | 0 | (1,351) |
Termination reclasses to decrease finance lease liabilities | $ (12) | $ (87) |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 9 Months Ended |
Oct. 01, 2023 | |
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. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | |||
Contract Assets | $ 59,782 | $ 56,008 | $ 51,106 |
Contract Liabilities | $ (32,481) | $ (22,423) | $ (18,993) |
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. 01, 2023 | Dec. 31, 2022 | |
Contract Asset | ||
Beginning Balance | $ 56,008 | $ 51,106 |
Acquired as part of a business combination | 0 | 8,107 |
Increases due to rights to consideration for customer specific goods produced, but not billed during the period | 59,782 | 56,008 |
Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combinations | (56,008) | (59,213) |
Ending Balance | 59,782 | 56,008 |
Contract Liability | ||
Beginning Balance | (22,423) | (18,993) |
Acquired as part of a business combination | (1,786) | (5,418) |
Revenue deferred or rebates accrued | (35,772) | (57,510) |
Recognized as revenue | 8,236 | 18,201 |
Rebates paid to customers | 19,264 | 41,297 |
Ending Balance | $ (32,481) | $ (22,423) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,710,419 | $ 1,890,216 | $ 5,145,492 | $ 5,574,530 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,222,873 | 1,407,906 | 3,658,565 | 4,035,043 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 225,627 | 221,280 | 709,329 | 732,252 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 54,134 | 58,625 | 165,889 | 174,294 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 84,740 | 91,152 | 248,655 | 291,177 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 123,045 | 111,253 | 363,054 | 341,764 |
Operating Segments | Consumer Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 938,407 | 1,030,549 | 2,771,290 | 2,888,630 |
Operating Segments | Industrial Paper Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 580,035 | 661,452 | 1,781,033 | 2,087,981 |
Operating Segments | United States | Consumer Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 726,137 | 837,048 | 2,130,895 | 2,282,559 |
Operating Segments | United States | Industrial Paper Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 335,136 | 405,382 | 1,035,849 | 1,259,348 |
Operating Segments | Europe | Consumer Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 116,148 | 101,665 | 346,287 | 331,745 |
Operating Segments | Europe | Industrial Paper Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 91,175 | 99,804 | 300,145 | 334,007 |
Operating Segments | Canada | Consumer Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 29,268 | 30,154 | 89,860 | 89,342 |
Operating Segments | Canada | Industrial Paper Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,866 | 28,471 | 76,029 | 84,952 |
Operating Segments | Asia | Consumer Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,828 | 25,492 | 73,430 | 74,533 |
Operating Segments | Asia | Industrial Paper Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 59,284 | 65,475 | 173,903 | 215,896 |
Operating Segments | Other | Consumer Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 42,026 | 36,190 | 130,818 | 110,451 |
Operating Segments | Other | Industrial Paper Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 69,574 | 62,320 | 195,107 | 193,778 |
All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 191,977 | 198,215 | 593,169 | 597,919 |
All Other | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 161,600 | 165,476 | 491,821 | 493,136 |
All Other | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 18,304 | 19,811 | 62,897 | 66,500 |
All Other | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
All Other | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 628 | 185 | 1,322 | 748 |
All Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 11,445 | $ 12,743 | $ 37,129 | $ 37,535 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Thousands | 9 Months Ended | ||
Oct. 01, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | [1] | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Total assets | $ 7,269,999 | $ 7,052,940 | |
Industrial Paper Packaging | RTS Packaging and Chattanooga Mill | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 364,566 | ||
[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 (the “United States” or “U.S.”). |
Segment Reporting - Segment Fin
Segment Reporting - Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,710,419 | $ 1,890,216 | $ 5,145,492 | $ 5,574,530 |
Operating profit | 162,937 | 181,942 | 580,444 | 548,480 |
Restructuring/Asset impairment charges | (18,110) | (20,652) | (52,981) | (43,357) |
Amortization of Intangible Assets | (21,379) | (20,690) | (63,082) | (60,361) |
Other operating income/(charges), net | (10,120) | (1,807) | 59,602 | (83,838) |
Intersegment sales | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 7,726 | 38,131 | 91,749 | 114,016 |
Operating Segments | Consumer Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 938,407 | 1,030,549 | 2,771,290 | 2,888,630 |
Operating profit | 112,038 | 127,859 | 299,083 | 440,889 |
Operating Segments | Consumer Packaging | Intersegment sales | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,794 | 1,663 | 7,269 | 5,189 |
Operating Segments | Industrial Paper Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 580,035 | 661,452 | 1,781,033 | 2,087,981 |
Operating profit | 75,006 | 81,859 | 256,413 | 248,721 |
Operating Segments | Industrial Paper Packaging | Intersegment sales | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,032 | 33,936 | 77,163 | 101,072 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 191,977 | 198,215 | 593,169 | 597,919 |
Operating profit | 25,502 | 15,373 | 81,409 | 46,426 |
All Other | Intersegment sales | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,900 | $ 2,532 | $ 7,317 | $ 7,755 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 143 Months Ended | |
Oct. 01, 2023 | Dec. 31, 2022 | |
Site Contingency [Line Items] | ||
Environmental accrual | $ 6,960 | $ 7,265 |
Multiple Sites | ||
Site Contingency [Line Items] | ||
Environmental accrual | 1,666 | 1,840 |
Tegrant Holding Corporation | ||
Site Contingency [Line Items] | ||
Payment towards remediation of sites | 2,105 | |
Tegrant Holding Corporation | Spartanburg, South Carolina Site | ||
Site Contingency [Line Items] | ||
Environmental accrual | $ 5,295 | $ 5,425 |