Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 19, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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) | 98,255,819 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000091767 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | [1] |
Current Assets | |||
Cash and cash equivalents | $ 172,213 | $ 151,937 | |
Trade accounts receivable, net of allowances | 939,724 | 904,898 | |
Other receivables | 102,357 | 106,644 | |
Inventories, net: | |||
Finished and in process | 335,124 | 324,910 | |
Materials and supplies | 413,898 | 448,591 | |
Prepaid expenses | 101,288 | 113,385 | |
Total Current Assets | 2,064,604 | 2,050,365 | |
Property, Plant and Equipment, Net | 1,921,848 | 1,906,137 | |
Goodwill | 1,796,077 | 1,810,654 | |
Other Intangible Assets, Net | 828,085 | 853,670 | |
Deferred Income Taxes | 27,848 | 31,329 | |
Right of Use Asset-Operating Leases | 332,587 | 314,944 | |
Other Assets | 227,231 | 224,858 | |
Total Assets | 7,198,280 | 7,191,957 | |
Current Liabilities | |||
Payable to suppliers | 722,562 | 707,490 | |
Accrued expenses and other | 393,789 | 400,014 | |
Notes payable and current portion of long-term debt | 453,710 | 47,132 | |
Accrued taxes | 7,248 | 10,641 | |
Total Current Liabilities | 1,577,309 | 1,165,277 | |
Long-term Debt, Net of Current Portion | 2,630,424 | 3,035,868 | |
Noncurrent Operating Lease Liabilities | 282,877 | 265,454 | |
Pension and Other Postretirement Benefits | 142,422 | 142,900 | |
Deferred Income Taxes | 99,685 | 100,788 | |
Other Liabilities | 38,081 | 49,835 | |
Commitments and Contingencies | |||
Common stock, no par value | |||
Authorized 300,000 shares 98,255 and 97,957 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 7,175 | 7,175 | |
Capital in excess of stated value | 159,343 | 159,047 | |
Accumulated other comprehensive loss | (385,369) | (366,262) | |
Retained earnings | 2,639,209 | 2,624,380 | |
Total Sonoco Shareholders’ Equity | 2,420,358 | 2,424,340 | |
Noncontrolling Interests | 7,124 | 7,495 | |
Total Equity | 2,427,482 | 2,431,835 | |
Total Liabilities and Equity | $ 7,198,280 | $ 7,191,957 | |
[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 | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 300,000 | 300,000 |
Common stock, shares issued (in shares) | 98,255 | 97,957 |
Common stock, shares outstanding (in shares) | 98,255 | 97,957 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 1,637,543 | $ 1,729,783 |
Cost of sales | 1,299,990 | 1,355,355 |
Gross profit | 337,553 | 374,428 |
Selling, general and administrative expenses | 193,482 | 187,976 |
Restructuring/Asset impairment charges | 31,618 | 28,814 |
Gain on divestiture of business and other assets | 0 | 72,010 |
Operating profit | 112,453 | 229,648 |
Non-operating pension costs | 3,295 | 3,658 |
Interest expense | 31,220 | 34,232 |
Interest income | 3,558 | 1,562 |
Income before income taxes | 81,496 | 193,320 |
Provision for income taxes | 17,360 | 46,912 |
Income before equity in earnings of affiliates | 64,136 | 146,408 |
Equity in earnings of affiliates, net of tax | 1,137 | 1,856 |
Net income | 65,273 | 148,264 |
Net (income)/loss attributable to noncontrolling interests | (96) | 55 |
Net income attributable to Sonoco | $ 65,177 | $ 148,319 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 98,498 | 98,167 |
Diluted (in shares) | 99,159 | 98,615 |
Net income attributable to Sonoco: | ||
Basic (in usd per share) | $ 0.66 | $ 1.51 |
Diluted (in usd per share) | $ 0.66 | $ 1.50 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 65,273 | $ 148,264 |
Other comprehensive (loss)/income: | ||
Foreign currency translation adjustments | (19,786) | 31,808 |
Changes in defined benefit plans, net of tax | 43 | 916 |
Changes in derivative financial instruments, net of tax | 169 | 2,514 |
Other comprehensive (loss)/income | (19,574) | 35,238 |
Comprehensive income: | 45,699 | 183,502 |
Less: Net (income)/loss attributable to noncontrolling interests | (96) | 55 |
Less: Other comprehensive loss/(income) attributable to noncontrolling interests | 467 | (239) |
Comprehensive income attributable to Sonoco | $ 46,070 | $ 183,318 |
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, 2022 | $ 2,072,797 | $ 7,175 | $ 140,539 | $ (430,083) | $ 2,348,183 | $ 6,983 | |
Beginning balance (in shares) at Dec. 31, 2022 | 97,645 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 148,264 | 148,319 | (55) | ||||
Other comprehensive (loss)/income | |||||||
Translation 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, 2023 | $ 2,431,835 | [1] | $ 7,175 | 159,047 | (366,262) | 2,624,380 | 7,495 |
Beginning balance (in shares) at Dec. 31, 2023 | 97,957 | 97,957 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | $ 65,273 | 65,177 | 96 | ||||
Other comprehensive (loss)/income | |||||||
Translation loss | (19,786) | (19,319) | (467) | ||||
Defined benefit plan adjustment, net of tax | 43 | 43 | |||||
Derivative financial instruments, net of tax | 169 | 169 | |||||
Other comprehensive (loss) income | (19,574) | (19,107) | (467) | ||||
Dividends | (50,348) | (50,348) | |||||
Issuance of stock awards | 204 | 204 | |||||
Issuance of stock awards (in shares) | 460 | ||||||
Shares repurchased | (9,139) | (9,139) | |||||
Shares repurchased (in shares) | (162) | ||||||
Share-based compensation | 8,325 | 8,325 | |||||
Other | 906 | 906 | |||||
Ending balance at Mar. 31, 2024 | $ 2,427,482 | $ 7,175 | $ 159,343 | $ (385,369) | $ 2,639,209 | $ 7,124 | |
Ending balance (in shares) at Mar. 31, 2024 | 98,255 | 98,255 | |||||
[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 | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Cash Flows from Operating Activities: | ||
Net income | $ 65,273 | $ 148,264 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Asset impairments | 8,346 | 18,616 |
Depreciation, depletion and amortization | 90,559 | 82,137 |
Share-based compensation expense | 8,325 | 7,573 |
Equity in earnings of affiliates, net | (1,137) | (1,856) |
Cash dividends from affiliated companies | 41 | 1,875 |
Net loss/(gain) on disposition of assets | 18 | (60,615) |
Net gain on divestiture of business and other assets | 0 | (11,065) |
Pension and postretirement plan expense | 4,104 | 4,408 |
Pension and postretirement plan contributions | (3,989) | (4,931) |
Net (decrease)/increase in deferred tax liabilities | (4,869) | 1,588 |
Change in assets and liabilities, net of effects from acquisitions, divestitures and foreign currency adjustments: | ||
Trade accounts receivable | (43,334) | (33,485) |
Inventories | 18,407 | 13,549 |
Payable to suppliers | 25,697 | (71,553) |
Prepaid expenses | (3,572) | 350 |
Income taxes payable and other income tax items | 9,436 | 22,030 |
Accrued expenses and other assets and liabilities | (7,070) | (18,883) |
Net cash provided by operating activities | 166,235 | 98,002 |
Cash Flows from Investing Activities: | ||
Purchases of property, plant and equipment | (86,458) | (83,401) |
Cost of acquisitions, net of cash acquired | (452) | 0 |
Proceeds from the sale of business, net | 0 | 13,839 |
Proceeds from the sale of assets, net | 101 | 71,405 |
Investment in affiliated companies | 0 | (5,000) |
Other net investing activities | 5,077 | 190 |
Net cash used by investing activities | (81,732) | (2,967) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of debt | 19,674 | 9,621 |
Principal repayment of debt | (21,448) | (84,162) |
Net change in commercial paper | 0 | 12,000 |
Net (decrease)/increase in book cash overdrafts | (1,614) | 2,670 |
Cash dividends | (50,144) | (47,731) |
Payments for share repurchases | (9,139) | (10,576) |
Net cash used by financing activities | (62,671) | (118,178) |
Effects of Exchange Rate Changes on Cash | (1,556) | 5,356 |
Net Increase in Cash and Cash Equivalents | 20,276 | (17,787) |
Cash and cash equivalents at beginning of period | 151,937 | 227,438 |
Cash and cash equivalents at end of period | $ 172,213 | $ 209,651 |
Basis of Interim Presentation
Basis of Interim Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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-month period ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. 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, 2023. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which modifies the rules on income tax disclosures to require disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The purpose of the amendment is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. The Company will begin providing the enhanced reportable segment financial disclosures effective with its Annual Report on Form 10-K for the year ending December 31, 2024. In September 2022, the FASB issued 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 provided in the Company’s Annual Report on Form 10-K for the year ending December 31, 2024. During the three-month period ended March 31, 2024, there were no other newly issued or newly applicable accounting pronouncements that had, or are expected to have, a material impact on the Company’s financial statements. Further, at March 31, 2024, there were 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 | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions As previously disclosed, on December 1, 2023, the Company completed the acquisition of Inapel Embalagens Ltda. (“Inapel”), a manufacturer of single-layer and multilayer materials for flexible packaging in Brazil, for net consideration of $64,544, including $59,228 of cash paid at closing and additional obligations to the seller totaling $5,316 that will be paid throughout 2024. This additional purchase consideration is recorded in “Payable to suppliers” in the Company’s Condensed Consolidated Balance Sheet as of March 31, 2024. With the acquisition of Inapel, the Company added approximately 500 employees and two manufacturing locations in the São Paulo region of Brazil. The financial results of Inapel are included in the Company’s Consumer Packaging segment . The Company’s initial allocation of the assets acquired and liabilities assumed in the acquisition of Inapel, as well as revised preliminary fair values reflecting adjustments made during the measurement period, are as follows: Initial Allocation Measurement Period Adjustments Preliminary Allocation Trade accounts receivable $ 30,301 $ (133) $ 30,168 Other receivables 6,088 70 6,158 Inventories 9,269 — 9,269 Prepaid expenses 1,430 — 1,430 Property, plant and equipment 11,456 17,459 28,915 Right of use asset - operating leases 217 — 217 Other intangible assets 8,653 (1,094) 7,559 Goodwill 15,704 (7,130) 8,574 Other assets 793 — 793 Payable to suppliers (15,899) 3,058 (12,841) Accrued expenses and other (5,733) (1,350) (7,083) Noncurrent operating lease liabilities (117) — (117) Deferred income taxes (2,934) (5,564) (8,498) Total purchase price, net of cash acquired $ 59,228 $ 5,316 $ 64,544 The allocation of the purchase price of Inapel 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 determinations of fair value using 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. The Company expects to complete its valuations within one year of the date of acquisition. Goodwill for Inapel, none of which is expected to be deductible for income tax purposes, is primarily attributable to the assembled workforce and synergies of the combined organization. On September 8, 2023, the Company completed the acquisition of the remaining 65% interest in RTS Packaging, LLC (“RTS Packaging”) from joint venture partner WestRock Company (“WestRock”) and the acquisition of a paper mill in Chattanooga, Tennessee (the “Chattanooga Mill”) from WestRock for net cash consideration of $313,388. In December 2023, the Company agreed to a final working capital settlement of $452, which was paid to WestRock in January 2024. 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. The financial results of RTS Packaging and the Chattanooga Mill are included in the Company’s Industrial Paper Packaging segment. The following table provides a summary of the purchase consideration (as defined under Accounting Standards Codification (“ASC”) 805) transferred for the acquisitions of the remaining interest in RTS Packaging and the Chattanooga Mill: Purchase Consideration Cash consideration, net of cash acquired $ 313,388 Fair value of previously held interest in RTS Packaging 59,472 Final working capital adjustment 452 Settlement of preexisting relationships 1,235 Purchase consideration transferred $ 374,547 The Company’s initial allocation of the assets acquired and liabilities assumed in the acquisitions of the remaining interest in RTS Packaging and the Chattanooga Mill, as well as revised preliminary fair values reflecting adjustments made during the measurement period, are as follows: Initial Allocation Measurement Period Adjustments Preliminary Allocation Trade accounts receivable $ 17,488 $ — $ 17,488 Other receivables — — — Inventories 20,209 (947) 19,262 Prepaid expenses 2,720 (589) 2,131 Property, plant and equipment 73,483 753 74,236 Right of use asset - operating leases 34,604 290 34,894 Other intangible assets 199,560 (8,995) 190,565 Goodwill 92,657 14,909 107,566 Other assets 2,465 (412) 2,053 Payable to suppliers (7,320) — (7,320) Accrued expenses and other (15,167) (25) (15,192) Notes payable and current portion of long-term debt (24) — (24) Noncurrent operating lease liabilities (29,905) — (29,905) Pension and other postretirement benefits (10,761) (768) (11,529) Long-term debt (1,942) — (1,942) Deferred income taxes (3,419) (2,502) (5,921) Other long-term liabilities (3,293) 1,478 (1,815) Net assets acquired $ 371,355 $ 3,192 $ 374,547 The initial allocation of the purchase price of the remaining interest in 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 determination of their fair values using 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. The Company expects to complete its valuations within one year of the date of acquisition. Goodwill for RTS Packaging and the Chattanooga Mill, of which $87,191 is expected to be deductible for income tax purposes, is primarily attributable to the synergies of the combined organization and the assembled workforce. The Company has accounted for these acquisitions as business combinations under the acquisition method and has included the results of operations of the acquired businesses in the Company’s Condensed Consolidated Statements of Income for the three-month period ended March 31, 2024. The Company believes that these acquisitions were not 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. Divestiture of Businesses On April 1, 2024, subsequent to the end of the first quarter, the Company completed the sale of its Protective Solutions business (“Protexic”), which was part of the All Other group of businesses, to Black Diamond Capital Management, LLC for cash proceeds of $81,795. This business provided foam components and integrated material solutions for various industrial end markets. This sale was the result of the Company’s continuing evaluation of its business portfolio and is consistent with the Company’s strategic and investment priorities. The Company is finalizing its calculation but estimates that the gain on the disposition will be approximately $3,000 after recognizing foreign currency translation losses and remaining selling costs. The Company used the majority of the cash proceeds from the sale to pay down debt. The sale of the Protexic business did not represent a strategic shift for the Company and will not have a major effect on its operations or financial results. Consequently, this sale will not meet the criteria for reporting as a discontinued operation. 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 are expected to be released to the Company, pursuant to any indemnification claims, twenty months following the date of the divestiture. 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 first quarter of 2023, which is included in “Gain on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income. The escrow balance is reflected as a long-term receivable in “Other assets” in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2024. 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 an additional gain on the sale at the point the contingencies are resolved. On January 26, 2023, in connection with the sale of the S3 business, the Company acquired a 2.7% equity interest in Northstar valued at $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 sale of the S3 business did not represent a strategic shift for the Company or have a major effect on its operations or financial results. Consequently, this sale did not meet the criteria for reporting as a discontinued operation. 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, totaling 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 three-month period ended April 2, 2023, which is included in “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 $5,661 and $5,188 during the three-month periods ended March 31, 2024 and April 2, 2023, respectively. These costs include legal and professional fees, as well as employee-related and other integration activity costs that are included in “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Earnings per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended March 31, 2024 April 2, 2023 Numerator: Net income attributable to Sonoco $ 65,177 $ 148,319 Denominator: Weighted average common shares outstanding: Basic 98,498 98,167 Dilutive effect of share-based compensation 661 448 Diluted 99,159 98,615 Net income attributable to Sonoco per common share: Basic $ 0.66 $ 1.51 Diluted $ 0.66 $ 1.50 Cash dividends $ 0.51 $ 0.49 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-month periods ended March 31, 2024 and April 2, 2023 were as follows (in thousands): Three Months Ended March 31, 2024 April 2, 2023 Anti-dilutive stock appreciation rights 340 343 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 years ended December 31, 2023 or 2022 or the three-month period ended March 31, 2024. 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 162 shares during the three-month period ended March 31, 2024, at a cost of $9,139, and 175 shares during the three-month period ended April 2, 2023, at a cost of $10,576. Dividend Declarations On February 14, 2024, the Board declared a regular quarterly dividend of $0.51 per share. This dividend was paid on March 8, 2024 to all shareholders of record as of February 28, 2024. On April 17, 2024, the Board declared a regular quarterly dividend of $0.52 per share. This dividend is payable on June 10, 2024 to all shareholders of record as of May 10, 2024. |
Restructuring and Asset Impairm
Restructuring and Asset Impairments | 3 Months Ended |
Mar. 31, 2024 | |
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 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 March 31, 2024 April 2, 2023 Restructuring/Asset impairment charges $ 31,618 $ 28,814 The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred: Three Months Ended March 31, 2024 April 2, 2023 Severance and termination benefits $ 17,993 $ 5,516 Asset impairments 8,844 19,193 Other costs 4,781 4,105 Restructuring and restructuring-related asset impairment charges $ 31,618 $ 28,814 The table below sets forth restructuring and restructuring-related asset impairment charges attributable to each reportable segment, the “All Other” group of businesses, and Corporate-related activity: Three Months Ended March 31, 2024 April 2, 2023 Consumer Packaging $ 4,925 $ 2,680 Industrial Paper Packaging 22,603 24,544 All Other 1,148 53 Corporate 2,942 1,537 Restructuring and restructuring-related asset impairment charges $ 31,618 $ 28,814 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” in the Company’s Condensed Consolidated Balance Sheets: Severance Asset Other Total Accrual Activity Liability at December 31, 2023 $ 14,315 $ — $ 1,638 $ 15,953 2024 charges 17,993 8,844 4,781 31,618 Cash payments (6,314) (498) (2,218) (9,030) Asset writedowns/disposals — (8,346) — (8,346) Foreign currency translation (81) — (15) (96) Liability at March 31, 2024 $ 25,913 $ — $ 4,186 $ 30,099 “Severance and termination benefits” during the first three months of 2024 includes the cost of severance for approximately 95 employees whose positions were eliminated in conjunction with the Company’s ongoing organizational effectiveness efforts, including the relocation of certain facilities in Greece and Germany, and severance related to the closures of paper mills in Sumner, Washington (the “Sumner Mill”) and Kilkis, Greece, the closures of two small industrial converted products facilities in China, and the planned closure of an industrial converted products facility in Mississauga, Canada, all part of the Industrial Paper Packaging segment. “Asset impairments” during the first three months of 2024 consists primarily of asset impairment charges related to the closure of the Sumner Mill. “Other costs” during the first three months of 2024 consists primarily of equipment removal, utilities, plant security, property taxes, insurance and environmental remediation costs related to the closure of the Sumner Mill, and ongoing facility carrying costs of plant closures in the prior year. The Company expects to pay the majority of the remaining restructuring reserves by the end of 2024 using cash generated from operations. The Company also expects to recognize future additional charges totaling approximately $5,300 in connection with previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2024. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the three-month periods ended March 31, 2024 and April 2, 2023: Foreign Defined Cash Accumulated Balance at December 31, 2023 $ (267,578) $ (99,627) $ 943 $ (366,262) Other comprehensive (loss)/income before reclassifications (19,319) (932) 518 (19,733) Amounts reclassified from accumulated other comprehensive loss to net income — 975 (349) 626 Other comprehensive (loss)/income (19,319) 43 169 (19,107) Balance at March 31, 2024 $ (286,897) $ (99,584) $ 1,112 $ (385,369) Balance at December 31, 2022 $ (338,316) $ (90,973) $ (794) $ (430,083) Other comprehensive income/(loss) before reclassifications 31,569 (393) 2,645 33,821 Amounts reclassified from accumulated other comprehensive loss to net income — 1,309 (431) 878 Amounts reclassified from accumulated other comprehensive loss to property, plant, and equipment — — 300 300 Other comprehensive income 31,569 916 2,514 34,999 Balance at April 2, 2023 $ (306,747) $ (90,057) $ 1,720 $ (395,084) The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three-month periods ended March 31, 2024 and April 2, 2023: Amount Reclassified from Accumulated Three Months Ended Details about Accumulated Other March 31, April 2, Affected Line Item in Gains/(losses) on cash flow hedges Foreign exchange contracts (a) $ 436 $ 1,062 Net sales Foreign exchange contracts (a) (75) (454) Cost of sales Commodity contracts (a) — (32) Cost of sales 361 576 Income before income taxes Income tax impact (12) (145) Provision for income taxes 349 431 Net income Defined benefit pension items Effect of settlement loss (b) — (686) Non-operating pension costs Amortization of defined benefit pension items (b) (1,230) (1,071) Non-operating pension costs (1,230) (1,757) Income before income taxes Income tax impact 255 448 Provision for income taxes (975) (1,309) Net income Total reclassifications for the period $ (626) $ (878) Net income (a) See Note 9 for additional details. (b) See Note 11 for additional details. The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the three-month periods ended March 31, 2024 and April 2, 2023: Three Months Ended March 31, 2024 Three Months Ended April 2, 2023 Before Tax Tax After Tax Before Tax Tax After Tax Foreign currency items: Net other comprehensive (loss)/income from foreign currency items $ (16,788) $ (2,531) $ (19,319) $ 31,569 $ — $ 31,569 Defined benefit pension items: Other comprehensive (loss)/income before reclassifications (876) (56) (932) (760) 367 (393) Amounts reclassified from accumulated other comprehensive loss to net income (a) 1,230 (255) 975 1,757 (448) 1,309 Net other comprehensive income/(loss) from defined benefit pension items 354 (311) 43 997 (81) 916 Gains and losses on cash flow hedges: Other comprehensive income/(loss) before reclassifications 536 (18) 518 3,536 (891) 2,645 Amounts reclassified from accumulated other comprehensive loss to net income (b) (361) 12 (349) (576) 145 (431) Amounts reclassified from accumulated other comprehensive loss to property, plant and equipment — — — 401 (101) 300 Net other comprehensive income/(loss) from cash flow hedges 175 (6) 169 3,361 (847) 2,514 Other comprehensive (loss)/income $ (16,259) $ (2,848) $ (19,107) $ 35,927 $ (928) $ 34,999 (a) See Note 11 for additional details. (b) See Note 9 for additional details. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
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 three-month period ended March 31, 2024 is as follows: Consumer Industrial Paper Packaging All Other Total Goodwill at December 31, 2023 $ 1,056,241 $ 506,406 $ 248,007 $ 1,810,654 Foreign currency translation (4,427) (2,808) (212) (7,447) Measurement period adjustments (7,130) — — (7,130) Goodwill at March 31, 2024 $ 1,044,684 $ 503,598 $ 247,795 $ 1,796,077 Goodwill activity reflected under the caption “Measurement period adjustments” relates to the prior year acquisition of Inapel. 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 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 March 31, 2024, the total goodwill associated with the Plastics-Medical reporting unit was $63,991. During the time subsequent to the annual evaluation, and at March 31, 2024, 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 March 31, 2024 and December 31, 2023 is as follows: March 31, December 31, Other Intangible Assets, gross: Patents $ 29,297 $ 29,304 Customer lists 1,277,948 1,282,689 Trade names 41,738 41,836 Proprietary technology 56,848 56,857 Other 6,820 6,916 Total Other Intangible Assets, gross $ 1,412,651 $ 1,417,602 Accumulated Amortization: Patents $ (19,956) $ (19,549) Customer lists (511,699) (493,778) Trade names (20,146) (18,845) Proprietary technology (29,971) (29,013) Other (2,794) (2,747) Total Accumulated Amortization (584,566) (563,932) Other Intangible Assets, net $ 828,085 $ 853,670 During the first quarter of 2024, the Company recorded measurement period adjustments related to the December 1, 2023 acquisition of Inapel that reduced the previously reported fair value of customer lists by $1,094. The effect on amortization expense in the prior period was immaterial. 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 $22,939 and $21,164 for the three-month periods ended March 31, 2024 and April 2, 2023, respectively. Amortization expense on other intangible assets is expected to total approximately $90,200 in 2024, $78,900 in 2025, $75,000 in 2026, $73,900 in 2027 and $72,900 in 2028. |
Supply Chain Financing
Supply Chain Financing | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Supply Chain Financing | Supply Chain Financing The 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 March 31, 2024 and December 31, 2023: Balance Sheet Line Item March 31, 2024 December 31, 2023 Payable to suppliers (a) $ 35,645 $ 35,847 (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. |
Financial Instruments and Deriv
Financial Instruments and Derivatives | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Derivatives | Financial Instruments and Derivatives The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value. March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair Long-term debt, net of current portion $ 2,630,424 $ 2,485,816 $ 3,035,868 $ 2,890,009 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 March 31, 2024 and December 31, 2023, 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 from April 2024 to December 2024, qualify as cash flow hedges under U.S. generally accepted accounting principles (“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 March 31, 2024, these contracts included natural gas swaps covering approximately 0.05 million m etric million British thermal units (“MMBTUs”). These contracts represented approximatel y 0.9% o f anticipated usage in North America for 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 March 31, 2024 , the Company had also designated swap contracts covering 355 metric tons of aluminum as cash flow hedges. The fair value of the Company’s commodity cash flow hedges netted to loss positions of $(66) and $(41) at March 31, 2024 and December 31, 2023, respectively. The amount of the loss included in accumulated other comprehensive loss at March 31, 2024 expected to be reclassified to the income statement during the next twelve months is $(66). Foreign Currency Cash Flow Hedges The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales and purchases expected to occur in 2024 and 2025. The net positions of these contracts at March 31, 2024 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 16,966,782 Mexican peso purchase 429,499 Polish zloty purchase 98,802 Danish krone purchase 34,765 Swedish krona sell (4,855) Czech koruna purchase 86,121 Canadian dollar purchase 25,729 Euro purchase 1,744 Turkish lira purchase 43,173 Brazilian real purchase 41,819 British pound sell (800) The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to gain positions of $1,697 and $1,502 at March 31, 2024 and December 31, 2023, respectively. Gains of $1,697 are expected to be reclassified from accumulated other comprehensive income to the income statement during the next twelve months. Net Investment Hedge During the fourth quarter of 2023, the Company became a party to cross-currency swap agreements with a total notional amount of $500,000 to effectively convert a portion of the Company’s fixed-rate U.S. dollar denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt. The swap agreements, which have a maturity of December 18, 2026, provide for the Company to receive semi-annual interest payments in U.S. dollars at a fixed rate and to make semi-annual interest payments in euros at a fixed rate. The risk management objective of entering into the swap agreements is to manage foreign currency risk relating to net investments in certain European subsidiaries denominated in euros. The agreements are designated as net investment hedges for accounting purposes. The gain or loss on the net investment hedge derivative instrument is included in the “Foreign currency translation” component of “Accumulated other comprehensive loss” until the net investment is sold, diluted, or liquidated. Interest payments received for the cross-currency swaps are excluded from the net investment hedge effectiveness assessment and are recorded in “Interest expense” in the Company’s Condensed Consolidated Statements of Income. The assumptions used in measuring fair value of the cross-currency swaps are considered level 2 inputs, which are based upon the Euro-to-U.S. dollar exchange rate market. The fair value of the Company’s net investment hedges was a gain position of $4,850 and a loss position of $5,073 at March 31, 2024 and December 31, 2023, respectively. A translation gain of $3,613 (net of income taxes of $1,237) and a translation loss of $3,779 (net of income taxes of $1,294) were reported as components of “Accumulated other comprehensive loss” within “Foreign currency items” at March 31, 2024 and December 31, 2023, respectively. As a result of continued strengthening of the U.S. dollar against the euro, as well as a reduction in the differential between U.S. and European interest rates, the fair value of the Company’s net investment hedge continued to appreciate into the month of April 2024. On April 15, 2024, subsequent to the end of the first quarter of 2024, the Company terminated the swap agreements and received a cash settlement of $11,634. The foreign currency translation gain of approximately $3,143, net of tax, will be included as a component of “Accumulated other comprehensive loss” in the second quarter of 2024. Following the unwind of the swaps, the Company entered into new cross-currency swap agreements with a total notional amount of $500,000 to effectively convert a portion of the Company’s fixed-rate U.S. dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt. The new swap agreements have a maturity of May 1, 2027. 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 March 31, 2024, were as follows (in thousands): Currency Action Quantity Indonesian rupiah purchase 19,814,218 Colombian peso purchase 67,308,931 Mexican peso purchase 412,841 Canadian dollar purchase 7,981 Commodity Hedges The Company has entered into non-designated derivative contracts to manage the cost of a nticipated purchases of natural gas. At March 31, 2024, these contracts consisted of natural gas swaps covering approximately 6.6 million MMBTUs and represented approximately 87% and 33% of anticipated usage for 2024 and 2025, respectively. The fair value of the Company’s non-designated derivatives position was a loss of $(6,690) a nd $(6,790) at March 31, 2024 and December 31, 2023, respectively. The following table sets forth the location and fair values of the Company’s derivative instruments at March 31, 2024 and December 31, 2023: Description Balance Sheet Location March 31, 2024 December 31, 2023 Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ 28 $ 67 Commodity Contracts Accrued expenses and other (94) (108) Foreign Exchange Contracts Prepaid expenses 2,323 2,525 Foreign Exchange Contracts Accrued expenses and other (626) (1,024) Net Investment Hedge Prepaid expense 4,192 5,567 Net Investment Hedge Other assets 744 — Net Investment Hedge Other liabilities (86) (10,640) Derivatives not designated as hedging instruments: Commodity Contracts Prepaid expenses $ 103 $ 12 Commodity Contracts Other assets 250 — Commodity Contracts Accrued expenses and other (6,666) (6,782) Commodity Contracts Other liabilities (176) — Foreign Exchange Contracts Prepaid expenses 5 130 Foreign Exchange Contracts Accrued expenses and other (206) (159) 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 March 31, 2024 and April 2, 2023, 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 March 31, 2024 Foreign Exchange Contracts $ 561 Net sales $ 436 Cost of sales (75) Commodity Contracts $ (25) Cost of sales $ — Three-month period ended April 2, 2023 Foreign Exchange Contracts $ 3,613 Net sales $ 1,062 Cost of sales (454) Commodity Contracts $ (77) Cost of sales $ (32) Description Gain or (Loss) Location of Gain or (Loss) Recognized in Derivatives not Designated as Hedging Instruments: Three-month period ended March 31, 2024 Commodity Contracts $ (2,558) Cost of sales Foreign Exchange Contracts $ 305 Selling, general and administrative Three-month period ended April 2, 2023 Commodity Contracts $ (9,708) Cost of sales Foreign Exchange Contracts $ 2,137 Selling, general and administrative Three-month period ended March 31, 2024 Three-month period ended April 2, 2023 Description Revenue Cost of Revenue Cost of Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 436 $ (75) $ 1,062 $ (486) 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 $ 436 $ (75) $ 1,062 $ (454) Commodity contracts: Amount of gain reclassified from accumulated other comprehensive loss into net income $ — $ — $ — $ (32) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (66) $ — $ — $ (66) $ — Foreign exchange contracts $ 1,697 $ — $ — $ 1,697 $ — Net investment hedge $ 4,850 $ — $ — $ 4,850 $ — Non-hedge derivatives, net: Commodity contracts $ (6,489) $ — $ — $ (6,489) $ — Foreign exchange contracts $ (201) $ — $ — $ (201) $ — Description December 31, 2023 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (41) $ — $ — $ (41) $ — Foreign exchange contracts $ 1,502 $ — $ — $ 1,502 $ — Net investment hedge $ (5,073) $ — $ — $ (5,073) $ — Non-hedge derivatives, net: Commodity contracts $ (6,770) $ — $ — $ (6,770) $ — Foreign exchange contracts $ (29) $ — $ — $ (29) $ — As discussed in Note 9, 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-month period ended March 31, 2024. 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 April 2, 2023 Retirement Plans Service cost $ 755 $ 687 Interest cost 4,709 4,294 Expected return on plan assets (2,796) (2,444) Amortization of prior service cost 205 219 Amortization of net actuarial loss 1,075 1,045 Effect of settlement loss — 686 Net periodic benefit cost $ 3,948 $ 4,487 Retiree Health and Life Insurance Plans Service cost $ 54 $ 62 Interest cost 250 130 Expected return on plan assets (98) (79) Amortization of prior service cost 96 — Amortization of net actuarial gain (146) (193) Net periodic benefit cost/(income) $ 156 $ (80) Settlement Charges The Company recognized settlement ch arges of $686 during the three-month period ended April 2, 2023. 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. No settlement charges were recognized during the three-month period ended March 31, 2024. Contributions The Company made aggregate contributions of $3,989 and $4,931 to its defined benefit retirement and retiree health and life insurance plans during the three-month periods ended March 31, 2024 and April 2, 2023, respectively. The Company expects to make additional aggregate contributions of approximately $16,300 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2024. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rates for the three-month periods ended March 31, 2024 and April 2, 2023 were 21.3% and 24.3%, 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 acquisitions included operating lease liabilities of $34,604. For additional information about these acquisitions, see Note 3. The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at March 31, 2024 and December 31, 2023: Classification Balance Sheet Location March 31, 2024 December 31, 2023 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 332,587 $ 314,944 Finance lease assets Other Assets 92,684 94,026 Total lease assets $ 425,271 $ 408,970 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 55,269 $ 54,803 Current finance lease liabilities Notes payable and current portion of debt 23,259 18,791 Total current lease liabilities $ 78,528 $ 73,594 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 282,877 $ 265,454 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 63,955 70,203 Total noncurrent lease liabilities $ 346,832 $ 335,657 Total lease liabilities $ 425,360 $ 409,251 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-month periods ended March 31, 2024 and April 2, 2023: Three Months Ended Lease Cost March 31, 2024 April 2, 2023 Operating lease cost (a) $ 16,192 $ 13,411 Finance lease cost: Amortization of lease asset (a) 3,440 3,270 Interest on lease liabilities (b) 1,056 1,194 Variable lease cost (a) (c) 10,100 9,378 Total lease cost $ 30,788 $ 27,253 (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 three-month periods ended March 31, 2024 and April 2, 2023: Three Months Ended March 31, 2024 April 2, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 14,355 $ 13,561 Operating cash flows used by finance leases $ 1,056 $ 1,194 Financing cash flows used by finance leases $ 3,946 $ 4,581 Noncash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities $ 26,818 $ 6,513 Leased assets obtained in exchange for new finance lease liabilities $ 2,292 $ 2,805 Modification to leased assets for increase in operating lease liabilities $ 4,171 $ 3,957 Termination reclasses to decrease operating lease assets $ (1,202) $ (2,029) Termination reclasses to decrease operating lease liabilities $ (1,432) $ (2,090) Termination reclasses to decrease finance lease assets $ — $ (962) Termination reclasses to decrease finance lease liabilities $ — $ (12) |
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 acquisitions included operating lease liabilities of $34,604. For additional information about these acquisitions, see Note 3. The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at March 31, 2024 and December 31, 2023: Classification Balance Sheet Location March 31, 2024 December 31, 2023 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 332,587 $ 314,944 Finance lease assets Other Assets 92,684 94,026 Total lease assets $ 425,271 $ 408,970 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 55,269 $ 54,803 Current finance lease liabilities Notes payable and current portion of debt 23,259 18,791 Total current lease liabilities $ 78,528 $ 73,594 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 282,877 $ 265,454 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 63,955 70,203 Total noncurrent lease liabilities $ 346,832 $ 335,657 Total lease liabilities $ 425,360 $ 409,251 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-month periods ended March 31, 2024 and April 2, 2023: Three Months Ended Lease Cost March 31, 2024 April 2, 2023 Operating lease cost (a) $ 16,192 $ 13,411 Finance lease cost: Amortization of lease asset (a) 3,440 3,270 Interest on lease liabilities (b) 1,056 1,194 Variable lease cost (a) (c) 10,100 9,378 Total lease cost $ 30,788 $ 27,253 (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 three-month periods ended March 31, 2024 and April 2, 2023: Three Months Ended March 31, 2024 April 2, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 14,355 $ 13,561 Operating cash flows used by finance leases $ 1,056 $ 1,194 Financing cash flows used by finance leases $ 3,946 $ 4,581 Noncash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities $ 26,818 $ 6,513 Leased assets obtained in exchange for new finance lease liabilities $ 2,292 $ 2,805 Modification to leased assets for increase in operating lease liabilities $ 4,171 $ 3,957 Termination reclasses to decrease operating lease assets $ (1,202) $ (2,029) Termination reclasses to decrease operating lease liabilities $ (1,432) $ (2,090) Termination reclasses to decrease finance lease assets $ — $ (962) Termination reclasses to decrease finance lease liabilities $ — $ (12) |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2024 | |
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, in the Company’s Condensed Consolidated Balance Sheets. March 31, 2024 December 31, 2023 Contract Assets $ 53,170 $ 54,334 Contract Liabilities $ (21,758) $ (24,973) Significant changes in the contract assets and liabilities balances during the three-month period ended March 31, 2024 and the year ended December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Contract Contract Contract Contract Beginning Balance $ 54,334 $ (24,973) $ 56,008 $ (22,423) Acquired as part of a business combination — — — (1,436) Revenue deferred or rebates accrued — (16,449) — (53,464) Recognized as revenue 2,079 11,761 Rebates paid to customers — 17,585 — 40,589 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 53,170 — 54,334 — Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combinations (54,334) — (56,008) — Ending Balance $ 53,170 $ (21,758) $ 54,334 $ (24,973) 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 March 31, 2024 and April 2, 2023. 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 15 . Three-month period ended March 31, 2024 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 677,915 $ 354,366 $ 109,568 $ 1,141,849 Europe 112,787 97,700 14,390 224,877 Canada 30,452 24,770 — 55,222 Asia 25,905 56,950 354 83,209 Other 63,518 59,274 9,594 132,386 Total $ 910,577 $ 593,060 $ 133,906 $ 1,637,543 Three-month period ended April 2, 2023 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 737,791 $ 360,780 $ 127,127 $ 1,225,698 Europe 118,840 107,808 18,051 244,699 Canada 28,803 26,952 — 55,755 Asia 24,136 58,831 330 83,297 Other 48,438 61,484 10,412 120,334 Total $ 958,008 $ 615,855 $ 155,920 $ 1,729,783 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
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. Effective January 1, 2024, the Company integrated its flexible packaging and thermoformed packaging businesses within the Consumer Packaging segment in order to streamline operations, enhance customer service and better position the business for accelerated growth. As a result, the Company changed its operating and reporting structure to reflect the way it now manages its operations, evaluates performance, and allocates resources. Accordingly, the Company’s consumer thermoformed businesses have moved from the All Other group of businesses to the Consumer Packaging segment. Prior year segment results presented below have been recast to conform with the current presentation. In addition, effective January 1, 2024, the Company began conducting its recycling operations, part of the Industrial Paper Packaging segment, as a procurement function. As a result, no recycling net sales are recorded and the margin from the operations reduces “Cost of sales.” 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 applications; 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. 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 tables set forth net sales, intersegment sales, segment operating profit, and the reconciliation of segment operating profit to “Income before income taxes.” 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 FINANCIAL INFORMATION Three Months Ended March 31, 2024 April 2, 2023 Net sales: Consumer Packaging $ 910,577 $ 958,008 Industrial Paper Packaging 593,060 615,855 Total reportable segments $ 1,503,637 $ 1,573,863 All Other 133,906 155,920 Net Sales $ 1,637,543 $ 1,729,783 Intersegment sales (1) : Consumer Packaging $ 3,545 $ 2,007 Industrial Paper Packaging 28,417 38,720 Total reportable segments $ 31,962 $ 40,727 All Other 1,791 2,789 Intersegment Sales $ 33,753 $ 43,516 Segment operating profit (2) : Consumer Packaging $ 93,027 $ 96,494 Industrial Paper Packaging 65,844 94,367 Segment operating profit $ 158,871 $ 190,861 (1) Intersegment sales are recorded at a market-related transfer price. (2) 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; derivative gains/(losses); 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. RECONCILIATION OF SEGMENT OPERATING PROFIT TO INCOME BEFORE INCOME TAXES Three Months Ended March 31, 2024 April 2, 2023 Segment operating profit $ 158,871 $ 190,861 All Other operating profit 17,125 22,560 Corporate Restructuring/Asset impairment charges (31,618) (28,814) Amortization of acquisition intangibles (22,939) (21,164) Gains from divestiture of business and other assets — 72,010 Acquisition, integration and divestiture-related costs (5,661) (5,188) Changes in LIFO inventory reserves (431) 5,425 Derivative gains/(losses) 286 (6,085) Other operating (charges)/income, net (3) (3,180) 43 Operating profit $ 112,453 $ 229,648 Non-operating pension costs (3,295) (3,658) Interest expense (31,220) (34,232) Interest income 3,558 1,562 Income before income taxes $ 81,496 $ 193,320 (3) Primarily consists of losses related to highly inflationary accounting in Turkey and consulting fees. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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 $2,175 on remediation of the Spartanburg site. At March 31, 2024 and December 31, 2023, the Company’s accrual for environmental contingencies related to the Spartanburg site totaled $5,225 and $5,259, 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 March 31, 2024 and December 31, 2023, the Company’s accrual for these other sites totaled $2,001 and $1,992, respectively. Summary As of March 31, 2024 and December 31, 2023, the Company and its subsidiaries had accrued $7,226 and $7,251, respectively, related to environmental contingencies. These accruals are included in “Accrued expenses and other” in the Company’s Condensed Consolidated Balance Sheets. Other Legal Matters In addition to those matters described above, the Company is subject to other various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters could differ from management’s expectations, the Company does not believe the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s financial statements. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Pay vs Performance Disclosure | ||
Net income attributable to Sonoco | $ 65,177 | $ 148,319 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
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) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which modifies the rules on income tax disclosures to require disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The purpose of the amendment is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. The Company will begin providing the enhanced reportable segment financial disclosures effective with its Annual Report on Form 10-K for the year ending December 31, 2024. In September 2022, the FASB issued 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 provided in the Company’s Annual Report on Form 10-K for the year ending December 31, 2024. During the three-month period ended March 31, 2024, there were no other newly issued or newly applicable accounting pronouncements that had, or are expected to have, a material impact on the Company’s financial statements. Further, at March 31, 2024, there were 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) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Preliminary Fair Value Of Assets Acquired And Measurement Period Adjustments | The Company’s initial allocation of the assets acquired and liabilities assumed in the acquisition of Inapel, as well as revised preliminary fair values reflecting adjustments made during the measurement period, are as follows: Initial Allocation Measurement Period Adjustments Preliminary Allocation Trade accounts receivable $ 30,301 $ (133) $ 30,168 Other receivables 6,088 70 6,158 Inventories 9,269 — 9,269 Prepaid expenses 1,430 — 1,430 Property, plant and equipment 11,456 17,459 28,915 Right of use asset - operating leases 217 — 217 Other intangible assets 8,653 (1,094) 7,559 Goodwill 15,704 (7,130) 8,574 Other assets 793 — 793 Payable to suppliers (15,899) 3,058 (12,841) Accrued expenses and other (5,733) (1,350) (7,083) Noncurrent operating lease liabilities (117) — (117) Deferred income taxes (2,934) (5,564) (8,498) Total purchase price, net of cash acquired $ 59,228 $ 5,316 $ 64,544 Initial Allocation Measurement Period Adjustments Preliminary Allocation Trade accounts receivable $ 17,488 $ — $ 17,488 Other receivables — — — Inventories 20,209 (947) 19,262 Prepaid expenses 2,720 (589) 2,131 Property, plant and equipment 73,483 753 74,236 Right of use asset - operating leases 34,604 290 34,894 Other intangible assets 199,560 (8,995) 190,565 Goodwill 92,657 14,909 107,566 Other assets 2,465 (412) 2,053 Payable to suppliers (7,320) — (7,320) Accrued expenses and other (15,167) (25) (15,192) Notes payable and current portion of long-term debt (24) — (24) Noncurrent operating lease liabilities (29,905) — (29,905) Pension and other postretirement benefits (10,761) (768) (11,529) Long-term debt (1,942) — (1,942) Deferred income taxes (3,419) (2,502) (5,921) Other long-term liabilities (3,293) 1,478 (1,815) Net assets acquired $ 371,355 $ 3,192 $ 374,547 |
Schedule 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 the remaining interest in RTS Packaging and the Chattanooga Mill: Purchase Consideration Cash consideration, net of cash acquired $ 313,388 Fair value of previously held interest in RTS Packaging 59,472 Final working capital adjustment 452 Settlement of preexisting relationships 1,235 Purchase consideration transferred $ 374,547 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended March 31, 2024 April 2, 2023 Numerator: Net income attributable to Sonoco $ 65,177 $ 148,319 Denominator: Weighted average common shares outstanding: Basic 98,498 98,167 Dilutive effect of share-based compensation 661 448 Diluted 99,159 98,615 Net income attributable to Sonoco per common share: Basic $ 0.66 $ 1.51 Diluted $ 0.66 $ 1.50 Cash dividends $ 0.51 $ 0.49 |
Schedule of Antidilutive Securities | The average numbers of SARs that were anti-dilutive and, therefore, not included in the computation of diluted earnings per share during the three-month periods ended March 31, 2024 and April 2, 2023 were as follows (in thousands): Three Months Ended March 31, 2024 April 2, 2023 Anti-dilutive stock appreciation rights 340 343 |
Restructuring and Asset Impai_2
Restructuring and Asset Impairments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule 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 March 31, 2024 April 2, 2023 Restructuring/Asset impairment charges $ 31,618 $ 28,814 The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred: Three Months Ended March 31, 2024 April 2, 2023 Severance and termination benefits $ 17,993 $ 5,516 Asset impairments 8,844 19,193 Other costs 4,781 4,105 Restructuring and restructuring-related asset impairment charges $ 31,618 $ 28,814 The table below sets forth restructuring and restructuring-related asset impairment charges attributable to each reportable segment, the “All Other” group of businesses, and Corporate-related activity: Three Months Ended March 31, 2024 April 2, 2023 Consumer Packaging $ 4,925 $ 2,680 Industrial Paper Packaging 22,603 24,544 All Other 1,148 53 Corporate 2,942 1,537 Restructuring and restructuring-related asset impairment charges $ 31,618 $ 28,814 |
Schedule of Restructuring Accrual Activity | The following table sets forth the activity in the restructuring accrual included in “Accrued expenses and other” in the Company’s Condensed Consolidated Balance Sheets: Severance Asset Other Total Accrual Activity Liability at December 31, 2023 $ 14,315 $ — $ 1,638 $ 15,953 2024 charges 17,993 8,844 4,781 31,618 Cash payments (6,314) (498) (2,218) (9,030) Asset writedowns/disposals — (8,346) — (8,346) Foreign currency translation (81) — (15) (96) Liability at March 31, 2024 $ 25,913 $ — $ 4,186 $ 30,099 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule 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 three-month periods ended March 31, 2024 and April 2, 2023: Foreign Defined Cash Accumulated Balance at December 31, 2023 $ (267,578) $ (99,627) $ 943 $ (366,262) Other comprehensive (loss)/income before reclassifications (19,319) (932) 518 (19,733) Amounts reclassified from accumulated other comprehensive loss to net income — 975 (349) 626 Other comprehensive (loss)/income (19,319) 43 169 (19,107) Balance at March 31, 2024 $ (286,897) $ (99,584) $ 1,112 $ (385,369) Balance at December 31, 2022 $ (338,316) $ (90,973) $ (794) $ (430,083) Other comprehensive income/(loss) before reclassifications 31,569 (393) 2,645 33,821 Amounts reclassified from accumulated other comprehensive loss to net income — 1,309 (431) 878 Amounts reclassified from accumulated other comprehensive loss to property, plant, and equipment — — 300 300 Other comprehensive income 31,569 916 2,514 34,999 Balance at April 2, 2023 $ (306,747) $ (90,057) $ 1,720 $ (395,084) |
Schedule 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-month periods ended March 31, 2024 and April 2, 2023: Amount Reclassified from Accumulated Three Months Ended Details about Accumulated Other March 31, April 2, Affected Line Item in Gains/(losses) on cash flow hedges Foreign exchange contracts (a) $ 436 $ 1,062 Net sales Foreign exchange contracts (a) (75) (454) Cost of sales Commodity contracts (a) — (32) Cost of sales 361 576 Income before income taxes Income tax impact (12) (145) Provision for income taxes 349 431 Net income Defined benefit pension items Effect of settlement loss (b) — (686) Non-operating pension costs Amortization of defined benefit pension items (b) (1,230) (1,071) Non-operating pension costs (1,230) (1,757) Income before income taxes Income tax impact 255 448 Provision for income taxes (975) (1,309) Net income Total reclassifications for the period $ (626) $ (878) Net income (a) See Note 9 for additional details. (b) See Note 11 for additional details. |
Schedule 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 March 31, 2024 and April 2, 2023: Three Months Ended March 31, 2024 Three Months Ended April 2, 2023 Before Tax Tax After Tax Before Tax Tax After Tax Foreign currency items: Net other comprehensive (loss)/income from foreign currency items $ (16,788) $ (2,531) $ (19,319) $ 31,569 $ — $ 31,569 Defined benefit pension items: Other comprehensive (loss)/income before reclassifications (876) (56) (932) (760) 367 (393) Amounts reclassified from accumulated other comprehensive loss to net income (a) 1,230 (255) 975 1,757 (448) 1,309 Net other comprehensive income/(loss) from defined benefit pension items 354 (311) 43 997 (81) 916 Gains and losses on cash flow hedges: Other comprehensive income/(loss) before reclassifications 536 (18) 518 3,536 (891) 2,645 Amounts reclassified from accumulated other comprehensive loss to net income (b) (361) 12 (349) (576) 145 (431) Amounts reclassified from accumulated other comprehensive loss to property, plant and equipment — — — 401 (101) 300 Net other comprehensive income/(loss) from cash flow hedges 175 (6) 169 3,361 (847) 2,514 Other comprehensive (loss)/income $ (16,259) $ (2,848) $ (19,107) $ 35,927 $ (928) $ 34,999 (a) See Note 11 for additional details. (b) See Note 9 for additional details. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of the Changes in Goodwill | A summary of the changes in goodwill for the three-month period ended March 31, 2024 is as follows: Consumer Industrial Paper Packaging All Other Total Goodwill at December 31, 2023 $ 1,056,241 $ 506,406 $ 248,007 $ 1,810,654 Foreign currency translation (4,427) (2,808) (212) (7,447) Measurement period adjustments (7,130) — — (7,130) Goodwill at March 31, 2024 $ 1,044,684 $ 503,598 $ 247,795 $ 1,796,077 |
Schedule of Other Intangible Assets | A summary of other intangible assets as of March 31, 2024 and December 31, 2023 is as follows: March 31, December 31, Other Intangible Assets, gross: Patents $ 29,297 $ 29,304 Customer lists 1,277,948 1,282,689 Trade names 41,738 41,836 Proprietary technology 56,848 56,857 Other 6,820 6,916 Total Other Intangible Assets, gross $ 1,412,651 $ 1,417,602 Accumulated Amortization: Patents $ (19,956) $ (19,549) Customer lists (511,699) (493,778) Trade names (20,146) (18,845) Proprietary technology (29,971) (29,013) Other (2,794) (2,747) Total Accumulated Amortization (584,566) (563,932) Other Intangible Assets, net $ 828,085 $ 853,670 |
Supply Chain Financing (Tables)
Supply Chain Financing (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023: Balance Sheet Line Item March 31, 2024 December 31, 2023 Payable to suppliers (a) $ 35,645 $ 35,847 (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. |
Financial Instruments and Der_2
Financial Instruments and Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule 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. March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair Long-term debt, net of current portion $ 2,630,424 $ 2,485,816 $ 3,035,868 $ 2,890,009 |
Schedule of Net Positions of Foreign Contracts | The net positions of these contracts at March 31, 2024 were as follows (in thousands): Currency Action Quantity Colombian peso purchase 16,966,782 Mexican peso purchase 429,499 Polish zloty purchase 98,802 Danish krone purchase 34,765 Swedish krona sell (4,855) Czech koruna purchase 86,121 Canadian dollar purchase 25,729 Euro purchase 1,744 Turkish lira purchase 43,173 Brazilian real purchase 41,819 British pound sell (800) |
Schedule of Net Positions of Other Derivatives Contracts | The net currency positions of these non-designated contracts at March 31, 2024, were as follows (in thousands): Currency Action Quantity Indonesian rupiah purchase 19,814,218 Colombian peso purchase 67,308,931 Mexican peso purchase 412,841 Canadian dollar purchase 7,981 |
Schedule 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 March 31, 2024 and December 31, 2023: Description Balance Sheet Location March 31, 2024 December 31, 2023 Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ 28 $ 67 Commodity Contracts Accrued expenses and other (94) (108) Foreign Exchange Contracts Prepaid expenses 2,323 2,525 Foreign Exchange Contracts Accrued expenses and other (626) (1,024) Net Investment Hedge Prepaid expense 4,192 5,567 Net Investment Hedge Other assets 744 — Net Investment Hedge Other liabilities (86) (10,640) Derivatives not designated as hedging instruments: Commodity Contracts Prepaid expenses $ 103 $ 12 Commodity Contracts Other assets 250 — Commodity Contracts Accrued expenses and other (6,666) (6,782) Commodity Contracts Other liabilities (176) — Foreign Exchange Contracts Prepaid expenses 5 130 Foreign Exchange Contracts Accrued expenses and other (206) (159) |
Schedule 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 March 31, 2024 and April 2, 2023, 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 March 31, 2024 Foreign Exchange Contracts $ 561 Net sales $ 436 Cost of sales (75) Commodity Contracts $ (25) Cost of sales $ — Three-month period ended April 2, 2023 Foreign Exchange Contracts $ 3,613 Net sales $ 1,062 Cost of sales (454) Commodity Contracts $ (77) Cost of sales $ (32) Description Gain or (Loss) Location of Gain or (Loss) Recognized in Derivatives not Designated as Hedging Instruments: Three-month period ended March 31, 2024 Commodity Contracts $ (2,558) Cost of sales Foreign Exchange Contracts $ 305 Selling, general and administrative Three-month period ended April 2, 2023 Commodity Contracts $ (9,708) Cost of sales Foreign Exchange Contracts $ 2,137 Selling, general and administrative Three-month period ended March 31, 2024 Three-month period ended April 2, 2023 Description Revenue Cost of Revenue Cost of Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 436 $ (75) $ 1,062 $ (486) 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 $ 436 $ (75) $ 1,062 $ (454) Commodity contracts: Amount of gain reclassified from accumulated other comprehensive loss into net income $ — $ — $ — $ (32) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule 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 March 31, 2024 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (66) $ — $ — $ (66) $ — Foreign exchange contracts $ 1,697 $ — $ — $ 1,697 $ — Net investment hedge $ 4,850 $ — $ — $ 4,850 $ — Non-hedge derivatives, net: Commodity contracts $ (6,489) $ — $ — $ (6,489) $ — Foreign exchange contracts $ (201) $ — $ — $ (201) $ — Description December 31, 2023 Assets measured Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ (41) $ — $ — $ (41) $ — Foreign exchange contracts $ 1,502 $ — $ — $ 1,502 $ — Net investment hedge $ (5,073) $ — $ — $ (5,073) $ — Non-hedge derivatives, net: Commodity contracts $ (6,770) $ — $ — $ (6,770) $ — Foreign exchange contracts $ (29) $ — $ — $ (29) $ — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost/(Income) | The components of net periodic benefit cost/(income) include the following: Three Months Ended March 31, 2024 April 2, 2023 Retirement Plans Service cost $ 755 $ 687 Interest cost 4,709 4,294 Expected return on plan assets (2,796) (2,444) Amortization of prior service cost 205 219 Amortization of net actuarial loss 1,075 1,045 Effect of settlement loss — 686 Net periodic benefit cost $ 3,948 $ 4,487 Retiree Health and Life Insurance Plans Service cost $ 54 $ 62 Interest cost 250 130 Expected return on plan assets (98) (79) Amortization of prior service cost 96 — Amortization of net actuarial gain (146) (193) Net periodic benefit cost/(income) $ 156 $ (80) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule 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 March 31, 2024 and December 31, 2023: Classification Balance Sheet Location March 31, 2024 December 31, 2023 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 332,587 $ 314,944 Finance lease assets Other Assets 92,684 94,026 Total lease assets $ 425,271 $ 408,970 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 55,269 $ 54,803 Current finance lease liabilities Notes payable and current portion of debt 23,259 18,791 Total current lease liabilities $ 78,528 $ 73,594 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 282,877 $ 265,454 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 63,955 70,203 Total noncurrent lease liabilities $ 346,832 $ 335,657 Total lease liabilities $ 425,360 $ 409,251 |
Schedule 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-month periods ended March 31, 2024 and April 2, 2023: Three Months Ended Lease Cost March 31, 2024 April 2, 2023 Operating lease cost (a) $ 16,192 $ 13,411 Finance lease cost: Amortization of lease asset (a) 3,440 3,270 Interest on lease liabilities (b) 1,056 1,194 Variable lease cost (a) (c) 10,100 9,378 Total lease cost $ 30,788 $ 27,253 (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 three-month periods ended March 31, 2024 and April 2, 2023: Three Months Ended March 31, 2024 April 2, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 14,355 $ 13,561 Operating cash flows used by finance leases $ 1,056 $ 1,194 Financing cash flows used by finance leases $ 3,946 $ 4,581 Noncash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities $ 26,818 $ 6,513 Leased assets obtained in exchange for new finance lease liabilities $ 2,292 $ 2,805 Modification to leased assets for increase in operating lease liabilities $ 4,171 $ 3,957 Termination reclasses to decrease operating lease assets $ (1,202) $ (2,029) Termination reclasses to decrease operating lease liabilities $ (1,432) $ (2,090) Termination reclasses to decrease finance lease assets $ — $ (962) Termination reclasses to decrease finance lease liabilities $ — $ (12) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, in the Company’s Condensed Consolidated Balance Sheets. March 31, 2024 December 31, 2023 Contract Assets $ 53,170 $ 54,334 Contract Liabilities $ (21,758) $ (24,973) Significant changes in the contract assets and liabilities balances during the three-month period ended March 31, 2024 and the year ended December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Contract Contract Contract Contract Beginning Balance $ 54,334 $ (24,973) $ 56,008 $ (22,423) Acquired as part of a business combination — — — (1,436) Revenue deferred or rebates accrued — (16,449) — (53,464) Recognized as revenue 2,079 11,761 Rebates paid to customers — 17,585 — 40,589 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 53,170 — 54,334 — Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combinations (54,334) — (56,008) — Ending Balance $ 53,170 $ (21,758) $ 54,334 $ (24,973) |
Schedule of Disaggregation of Revenue | The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended March 31, 2024 and April 2, 2023. 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 15 . Three-month period ended March 31, 2024 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 677,915 $ 354,366 $ 109,568 $ 1,141,849 Europe 112,787 97,700 14,390 224,877 Canada 30,452 24,770 — 55,222 Asia 25,905 56,950 354 83,209 Other 63,518 59,274 9,594 132,386 Total $ 910,577 $ 593,060 $ 133,906 $ 1,637,543 Three-month period ended April 2, 2023 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 737,791 $ 360,780 $ 127,127 $ 1,225,698 Europe 118,840 107,808 18,051 244,699 Canada 28,803 26,952 — 55,755 Asia 24,136 58,831 330 83,297 Other 48,438 61,484 10,412 120,334 Total $ 958,008 $ 615,855 $ 155,920 $ 1,729,783 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | SEGMENT FINANCIAL INFORMATION Three Months Ended March 31, 2024 April 2, 2023 Net sales: Consumer Packaging $ 910,577 $ 958,008 Industrial Paper Packaging 593,060 615,855 Total reportable segments $ 1,503,637 $ 1,573,863 All Other 133,906 155,920 Net Sales $ 1,637,543 $ 1,729,783 Intersegment sales (1) : Consumer Packaging $ 3,545 $ 2,007 Industrial Paper Packaging 28,417 38,720 Total reportable segments $ 31,962 $ 40,727 All Other 1,791 2,789 Intersegment Sales $ 33,753 $ 43,516 Segment operating profit (2) : Consumer Packaging $ 93,027 $ 96,494 Industrial Paper Packaging 65,844 94,367 Segment operating profit $ 158,871 $ 190,861 (1) Intersegment sales are recorded at a market-related transfer price. (2) 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; derivative gains/(losses); 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. RECONCILIATION OF SEGMENT OPERATING PROFIT TO INCOME BEFORE INCOME TAXES Three Months Ended March 31, 2024 April 2, 2023 Segment operating profit $ 158,871 $ 190,861 All Other operating profit 17,125 22,560 Corporate Restructuring/Asset impairment charges (31,618) (28,814) Amortization of acquisition intangibles (22,939) (21,164) Gains from divestiture of business and other assets — 72,010 Acquisition, integration and divestiture-related costs (5,661) (5,188) Changes in LIFO inventory reserves (431) 5,425 Derivative gains/(losses) 286 (6,085) Other operating (charges)/income, net (3) (3,180) 43 Operating profit $ 112,453 $ 229,648 Non-operating pension costs (3,295) (3,658) Interest expense (31,220) (34,232) Interest income 3,558 1,562 Income before income taxes $ 81,496 $ 193,320 (3) Primarily consists of losses related to highly inflationary accounting in Turkey and consulting fees. |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Acquisitions Additional Information (Details) | 3 Months Ended | |||
Dec. 01, 2023 USD ($) employee location | Sep. 08, 2023 USD ($) | Mar. 31, 2024 USD ($) | Apr. 02, 2023 USD ($) | |
Business Acquisition [Line Items] | ||||
Cash consideration, net of cash acquired | $ 452,000 | $ 0 | ||
Inapel | ||||
Business Acquisition [Line Items] | ||||
Total consideration | $ 64,544,000 | |||
Cash consideration, net of cash acquired | $ 59,228,000 | |||
Approximate number of employees (employee) | employee | 500 | |||
Contingent purchase liability | 5,316,000 | |||
Goodwill expected to be deductible for income tax purposes | 0 | |||
Inapel | BRAZIL | ||||
Business Acquisition [Line Items] | ||||
Number of manufacturing locations | location | 2 | |||
RTS Packaging and Chattanooga Mill | ||||
Business Acquisition [Line Items] | ||||
Total consideration | $ 374,547,000 | |||
Cash consideration, net of cash acquired | $ 313,388,000 | |||
Goodwill expected to be deductible for income tax purposes | $ 87,191,000 | |||
Voting interest acquired | 65% | |||
Final working capital adjustment | $ 452,000 | |||
RTS Packaging | ||||
Business Acquisition [Line Items] | ||||
Interest held in acquiree before subsequent acquisition (percent) | 35% |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Schedule of Preliminary Fair Value Of Assets Acquired And Measurement Period Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 7 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | [1] | Dec. 01, 2023 | Sep. 08, 2023 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||
Goodwill | $ 1,796,077 | $ 1,796,077 | $ 1,796,077 | $ 1,810,654 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | |||||||
Goodwill | (7,130) | ||||||
Inapel | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||
Trade accounts receivable | 30,168 | 30,168 | 30,168 | $ 30,301 | |||
Other receivables | 6,158 | 6,158 | 6,158 | 6,088 | |||
Inventories | 9,269 | 9,269 | 9,269 | 9,269 | |||
Prepaid expenses | 1,430 | 1,430 | 1,430 | 1,430 | |||
Property, plant and equipment | 28,915 | 28,915 | 28,915 | 11,456 | |||
Right of use asset - operating leases | 217 | 217 | 217 | 217 | |||
Other intangible assets | 7,559 | 7,559 | 7,559 | 8,653 | |||
Goodwill | 8,574 | 8,574 | 8,574 | 15,704 | |||
Other assets | 793 | 793 | 793 | 793 | |||
Payable to suppliers | (12,841) | (12,841) | (12,841) | (15,899) | |||
Accrued expenses and other | (7,083) | (7,083) | (7,083) | (5,733) | |||
Noncurrent operating lease liabilities | (117) | (117) | (117) | (117) | |||
Deferred income taxes | (8,498) | (8,498) | (8,498) | (2,934) | |||
Net assets acquired | 64,544 | 64,544 | 64,544 | $ 59,228 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | |||||||
Trade accounts receivable | (133) | ||||||
Other receivables | 70 | ||||||
Property, plant and equipment | 17,459 | ||||||
Other intangible assets | (1,094) | ||||||
Goodwill | (7,130) | ||||||
Payable to suppliers | 3,058 | ||||||
Accrued expenses and other | (1,350) | ||||||
Deferred income taxes | (5,564) | ||||||
Total purchase price, net of cash acquired | 5,316 | ||||||
RTS Packaging and Chattanooga Mill | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||
Trade accounts receivable | 17,488 | 17,488 | 17,488 | $ 17,488 | |||
Other receivables | 0 | 0 | 0 | 0 | |||
Inventories | 19,262 | 19,262 | 19,262 | 20,209 | |||
Prepaid expenses | 2,131 | 2,131 | 2,131 | 2,720 | |||
Property, plant and equipment | 74,236 | 74,236 | 74,236 | 73,483 | |||
Right of use asset - operating leases | 34,894 | 34,894 | 34,894 | 34,604 | |||
Other intangible assets | 190,565 | 190,565 | 190,565 | 199,560 | |||
Goodwill | 107,566 | 107,566 | 107,566 | 92,657 | |||
Other assets | 2,053 | 2,053 | 2,053 | 2,465 | |||
Payable to suppliers | (7,320) | (7,320) | (7,320) | (7,320) | |||
Accrued expenses and other | (15,192) | (15,192) | (15,192) | (15,167) | |||
Notes payable and current portion of long-term debt | (24) | (24) | (24) | (24) | |||
Noncurrent operating lease liabilities | (29,905) | (29,905) | (29,905) | (29,905) | |||
Pension and other postretirement benefits | (11,529) | (11,529) | (11,529) | (10,761) | |||
Long-term debt | (1,942) | (1,942) | (1,942) | (1,942) | |||
Deferred income taxes | (5,921) | (5,921) | (5,921) | (3,419) | |||
Other long-term liabilities | (1,815) | (1,815) | (1,815) | (3,293) | |||
Net assets acquired | $ 374,547 | $ 374,547 | 374,547 | $ 371,355 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | |||||||
Inventories | (947) | ||||||
Prepaid expenses | (589) | ||||||
Property, plant and equipment | 753 | ||||||
Right of use asset - operating leases | 290 | ||||||
Other intangible assets | (8,995) | ||||||
Goodwill | 14,909 | ||||||
Other assets | (412) | ||||||
Accrued expenses and other | (25) | ||||||
Pension and other postretirement benefits | (768) | ||||||
Deferred income taxes | (2,502) | ||||||
Other long-term liabilities | 1,478 | ||||||
Total purchase price, net of cash acquired | $ 3,192 | ||||||
[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_3
Acquisitions and Divestitures - Summary of the Purchase Consideration Transferred for the Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 08, 2023 | Mar. 31, 2024 | Apr. 02, 2023 | |
Business Acquisition [Line Items] | |||
Cash consideration, net of cash acquired | $ 452 | $ 0 | |
RTS Packaging and Chattanooga Mill | |||
Business Acquisition [Line Items] | |||
Cash consideration, net of cash acquired | $ 313,388 | ||
Fair value of previously held interest in RTS Packaging | 59,472 | ||
Final working capital adjustment | 452 | ||
Settlement of preexisting relationships | 1,235 | ||
Purchase consideration transferred | $ 374,547 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Divestiture of Businesses (Details) | 3 Months Ended | ||||||
Mar. 29, 2023 USD ($) a | Jan. 26, 2023 USD ($) | Jun. 30, 2024 USD ($) | Mar. 31, 2024 USD ($) | Jul. 02, 2023 USD ($) | Apr. 02, 2023 USD ($) | Apr. 01, 2024 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Divestitures | $ 0 | ||||||
Gain on divestiture of business and other assets | 0 | $ 72,010,000 | |||||
Gain on divestiture of business | 0 | $ 11,065,000 | |||||
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 | ||||||
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 | ||||||
Gain (loss) on the sale of business | $ 60,945,000 | ||||||
Disposed of by sale | Black Diamond Capital Management LLC | Forecast | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain on divestiture of business | $ 3,000,000 | ||||||
Disposed of by sale | Black Diamond Capital Management LLC | Subsequent Event | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Consideration for disposal of business held for sale | $ 81,795,000 |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Acquisition, Integration, and Divestiture-Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Business Combination and Asset Acquisition [Abstract] | ||
Acquisition, integration and divestiture-related costs | $ 5,661 | $ 5,188 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 08, 2024 | Mar. 31, 2024 | Apr. 02, 2023 | |
Numerator: | |||
Net income attributable to Sonoco | $ 65,177 | $ 148,319 | |
Denominator: | |||
Basic (in shares) | 98,498 | 98,167 | |
Dilutive effect of stock-based compensation (in shares) | 661 | 448 | |
Diluted (in shares) | 99,159 | 98,615 | |
Net income attributable to Sonoco per common share: | |||
Basic (in usd per share) | $ 0.66 | $ 1.51 | |
Diluted (in usd per share) | 0.66 | 1.50 | |
Cash dividends (in usd per share) | $ 0.51 | $ 0.51 | $ 0.49 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Anti-dilutive stock appreciation rights | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive stock appreciation rights (in shares) | 340 | 343 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 10, 2024 | Apr. 17, 2024 | Mar. 08, 2024 | Feb. 14, 2024 | Mar. 31, 2024 | Apr. 02, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 20, 2021 | |
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) | $ 0.51 | $ 0.51 | $ 0.49 | |||||||
Dividend declared and payable (in usd per share) | $ 0.51 | |||||||||
Forecast | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividends paid (in usd per share) | $ 0.52 | |||||||||
Subsequent Event | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividend declared and payable (in usd per share) | $ 0.52 | |||||||||
Tax Withholding Obligations | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of shares repurchased (in shares) | 162,000 | 175,000 | ||||||||
Cost of shares repurchased | $ 9,139 | $ 10,576 | ||||||||
Accelerated Share Repurchase Program | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of shares repurchased (in shares) | 0 | 0 | 0 |
Restructuring and Asset Impai_3
Restructuring and Asset Impairments - Schedule of Restructuring and Restructuring-Related Asset Impairment Expenses by Type Incurred and by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | $ 31,618 | $ 28,814 |
Restructuring/Asset impairment charges | 31,618 | 28,814 |
Operating Segments | Consumer Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 4,925 | 2,680 |
Operating Segments | Industrial Paper Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 22,603 | 24,544 |
All Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 1,148 | 53 |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 2,942 | 1,537 |
Severance and termination benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 17,993 | 5,516 |
Asset impairments | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 8,844 | 19,193 |
Other costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | $ 4,781 | $ 4,105 |
Restructuring and Asset Impai_4
Restructuring and Asset Impairments - Schedule of Restructuring Accrual Activity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2023 | $ 15,953 |
2024 charges | 31,618 |
Cash payments | (9,030) |
Asset writedowns/disposals | (8,346) |
Foreign currency translation | (96) |
Liability at March 31, 2024 | 30,099 |
Severance and Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2023 | 14,315 |
2024 charges | 17,993 |
Cash payments | (6,314) |
Asset writedowns/disposals | 0 |
Foreign currency translation | (81) |
Liability at March 31, 2024 | 25,913 |
Asset Impairments/ Disposal of Assets | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2023 | 0 |
2024 charges | 8,844 |
Cash payments | (498) |
Asset writedowns/disposals | (8,346) |
Foreign currency translation | 0 |
Liability at March 31, 2024 | 0 |
Other Costs | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2023 | 1,638 |
2024 charges | 4,781 |
Cash payments | (2,218) |
Asset writedowns/disposals | 0 |
Foreign currency translation | (15) |
Liability at March 31, 2024 | $ 4,186 |
Restructuring and Asset Impai_5
Restructuring and Asset Impairments - Additional Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) employee facility | |
Restructuring Cost and Reserve [Line Items] | |
Future additional charges expected to be recognized | $ | $ 5,300 |
Organizational effectiveness efforts | |
Restructuring Cost and Reserve [Line Items] | |
Number of eliminated positions (position) | employee | 95 |
Number of facility closures | facility | 2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2024 | Apr. 02, 2023 | Dec. 31, 2023 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | $ 2,431,835 | [1] | $ 2,072,797 | $ 2,072,797 | |
Other comprehensive (loss)/income | (19,574) | 35,238 | |||
Ending balance | 2,427,482 | 2,205,565 | 2,431,835 | [1] | |
Foreign Currency Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (267,578) | (338,316) | (338,316) | ||
Other comprehensive (loss)/income before reclassifications | (19,319) | 31,569 | |||
Other comprehensive (loss)/income | (19,319) | 31,569 | |||
Ending balance | (286,897) | (306,747) | (267,578) | ||
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 | ||||
Foreign Currency Items | Net Income | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss net of tax | 0 | 0 | |||
Defined Benefit Pension Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (99,627) | (90,973) | (90,973) | ||
Other comprehensive (loss)/income before reclassifications | (932) | (393) | |||
Other comprehensive (loss)/income | 43 | 916 | |||
Ending balance | (99,584) | (90,057) | (99,627) | ||
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 | ||||
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 | 975 | 1,309 | |||
Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | 943 | (794) | (794) | ||
Other comprehensive (loss)/income before reclassifications | 518 | 2,645 | |||
Other comprehensive (loss)/income | 169 | 2,514 | |||
Ending balance | 1,112 | 1,720 | 943 | ||
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 | ||||
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 | (349) | (431) | |||
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (366,262) | (430,083) | (430,083) | ||
Other comprehensive (loss)/income before reclassifications | (19,733) | 33,821 | |||
Other comprehensive (loss)/income | (19,107) | 34,999 | |||
Ending balance | (385,369) | (395,084) | $ (366,262) | ||
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 | ||||
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 | $ 626 | $ 878 | |||
[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 - Schedule of Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | $ 1,637,543 | $ 1,729,783 |
Cost of sales | (1,299,990) | (1,355,355) |
Income before income taxes | 81,496 | 193,320 |
Provision for income taxes | (17,360) | (46,912) |
Net income | 65,273 | 148,264 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | 436 | 1,062 |
Cost of sales | (75) | (486) |
Net income | (626) | (878) |
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | 361 | 576 |
Provision for income taxes | (12) | (145) |
Net income | 349 | 431 |
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 | 436 | 1,062 |
Cost of sales | (75) | (454) |
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 |
Cost of sales | 0 | (32) |
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Pension Items | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | (1,230) | (1,757) |
Provision for income taxes | 255 | 448 |
Net income | (975) | (1,309) |
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 | 0 | (686) |
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 | $ (1,230) | $ (1,071) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Schedule of Before and After Tax Amounts for Comprehensive Income (Loss) Components (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive (loss) income | $ (19,574) | $ 35,238 |
Foreign Currency Items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive (loss)/income before reclassifications before tax | (16,788) | 31,569 |
Other comprehensive (loss)/income before reclassifications, tax | (2,531) | 0 |
Other comprehensive (loss)/income before reclassifications, net of tax | (19,319) | 31,569 |
Defined benefit pension items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive (loss)/income before reclassifications before tax | (876) | (760) |
Other comprehensive (loss)/income before reclassifications, tax | (56) | 367 |
Other comprehensive (loss)/income before reclassifications, net of tax | (932) | (393) |
Other comprehensive income/(loss) before tax | 354 | 997 |
Other comprehensive income/(loss), tax | (311) | (81) |
Other comprehensive (loss) income | 43 | 916 |
Defined benefit pension items | Net Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income loss before tax | 1,230 | 1,757 |
Amounts reclassified from accumulated other comprehensive income loss, tax | (255) | (448) |
Amounts reclassified from accumulated other comprehensive income loss net of tax | 975 | 1,309 |
Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive (loss)/income before reclassifications before tax | 536 | 3,536 |
Other comprehensive (loss)/income before reclassifications, tax | (18) | (891) |
Other comprehensive (loss)/income before reclassifications, net of tax | 518 | 2,645 |
Other comprehensive income/(loss) before tax | 175 | 3,361 |
Other comprehensive income/(loss), tax | (6) | (847) |
Other comprehensive (loss) income | 169 | 2,514 |
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 | 401 |
Amounts reclassified from accumulated other comprehensive income loss, tax | 0 | (101) |
Amounts reclassified from accumulated other comprehensive income loss net of tax | 0 | 300 |
Cash Flow Hedges | Net Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income loss before tax | (361) | (576) |
Amounts reclassified from accumulated other comprehensive income loss, tax | 12 | 145 |
Amounts reclassified from accumulated other comprehensive income loss net of tax | (349) | (431) |
Other comprehensive (loss)/income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income/(loss) before tax | (16,259) | 35,927 |
Other comprehensive income/(loss), tax | (2,848) | (928) |
Other comprehensive (loss) income | $ (19,107) | $ 34,999 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of the Changes in Goodwill (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,810,654 | [1] |
Foreign currency translation | (7,447) | |
Measurement period adjustments | (7,130) | |
Goodwill, ending balance | 1,796,077 | |
All Other | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 248,007 | |
Foreign currency translation | (212) | |
Measurement period adjustments | 0 | |
Goodwill, ending balance | 247,795 | |
Consumer Packaging | Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,056,241 | |
Foreign currency translation | (4,427) | |
Measurement period adjustments | (7,130) | |
Goodwill, ending balance | 1,044,684 | |
Industrial Paper Packaging | Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 506,406 | |
Foreign currency translation | (2,808) | |
Measurement period adjustments | 0 | |
Goodwill, ending balance | $ 503,598 | |
[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 | 4 Months Ended | 7 Months Ended | |||||
Mar. 31, 2024 | Apr. 02, 2023 | Mar. 31, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | [1] | Dec. 01, 2023 | Sep. 08, 2023 | |
Goodwill [Line Items] | ||||||||
Impairment of goodwill | $ 0 | |||||||
Goodwill | 1,796,077,000 | $ 1,796,077,000 | $ 1,796,077,000 | $ 1,810,654,000 | ||||
Indefinite-lived intangible assets | 0 | 0 | 0 | |||||
Aggregate amortization expense | 22,939,000 | $ 21,164,000 | ||||||
Amortization expense on other intangible assets in 2024 | 90,200,000 | 90,200,000 | 90,200,000 | |||||
Amortization expense on other intangible assets in 2025 | 78,900,000 | 78,900,000 | 78,900,000 | |||||
Amortization expense on other intangible assets in 2026 | 75,000,000 | 75,000,000 | 75,000,000 | |||||
Amortization expense on other intangible assets in 2027 | 73,900,000 | 73,900,000 | 73,900,000 | |||||
Amortization expense on other intangible assets in 2028 | $ 72,900,000 | $ 72,900,000 | $ 72,900,000 | |||||
Minimum | Other | ||||||||
Goodwill [Line Items] | ||||||||
Useful lives of intangible asset | 3 years | 3 years | 3 years | |||||
Maximum | Other | ||||||||
Goodwill [Line Items] | ||||||||
Useful lives of intangible asset | 40 years | 40 years | 40 years | |||||
RTS Packaging and Chattanooga Mill | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | $ 107,566,000 | $ 107,566,000 | $ 107,566,000 | $ 92,657,000 | ||||
Other intangible assets | (8,995,000) | |||||||
Inapel | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | 8,574,000 | 8,574,000 | 8,574,000 | $ 15,704,000 | ||||
Other intangible assets | (1,094,000) | |||||||
Plastics - Medical Reporting Unit | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | $ 63,991,000 | $ 63,991,000 | $ 63,991,000 | |||||
[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 - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total Other Intangible Assets, gross | $ 1,412,651 | $ 1,417,602 | |
Total Accumulated Amortization | (584,566) | (563,932) | |
Other Intangible Assets, net | 828,085 | 853,670 | [1] |
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Other Intangible Assets, gross | 29,297 | 29,304 | |
Total Accumulated Amortization | (19,956) | (19,549) | |
Customer lists | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Other Intangible Assets, gross | 1,277,948 | 1,282,689 | |
Total Accumulated Amortization | (511,699) | (493,778) | |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Other Intangible Assets, gross | 41,738 | 41,836 | |
Total Accumulated Amortization | (20,146) | (18,845) | |
Proprietary technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Other Intangible Assets, gross | 56,848 | 56,857 | |
Total Accumulated Amortization | (29,971) | (29,013) | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Other Intangible Assets, gross | 6,820 | 6,916 | |
Total Accumulated Amortization | $ (2,794) | $ (2,747) | |
[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 | Mar. 31, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Payable to suppliers | $ 35,645 | $ 35,847 |
Financial Instruments and Der_3
Financial Instruments and Derivatives - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net of current portion | $ 2,630,424 | $ 3,035,868 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net of current portion | $ 2,485,816 | $ 2,890,009 |
Financial Instruments and Der_4
Financial Instruments and Derivatives - Additional Information (Details) ₺ in Thousands, € in Thousands, zł in Thousands, kr in Thousands, R$ in Thousands, MMBTU in Thousands, Kč in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Apr. 15, 2024 USD ($) | Mar. 31, 2024 USD ($) MMBTU t | Apr. 02, 2023 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2024 COP ($) | Mar. 31, 2024 MXN ($) | Mar. 31, 2024 PLN (zł) | Mar. 31, 2024 DKK (kr) | Mar. 31, 2024 CZK (Kč) | Mar. 31, 2024 CAD ($) | Mar. 31, 2024 EUR (€) | Mar. 31, 2024 TRY (₺) | Mar. 31, 2024 BRL (R$) | |
Derivative [Line Items] | |||||||||||||
Derivatives net of tax | $ (19,574) | $ 35,238 | |||||||||||
Total fair value of other derivatives not designated as hedging instruments | (6,690) | $ (6,790) | |||||||||||
Cash Flow Hedging | Derivatives Designated as Hedging Instruments | |||||||||||||
Derivative [Line Items] | |||||||||||||
Fair value of commodity cash flow hedges, loss | (66) | (41) | |||||||||||
Commodity loss expected to be reclassified to the income statement during the next 12 months | (66) | ||||||||||||
Fair value of foreign currency cash flow hedges, gain (loss) | 1,697 | 1,502 | |||||||||||
Foreign currency gains (loss) expected to be reclassified to the income statement during the next 12 months | $ 1,697 | ||||||||||||
Notional amount | $ 16,966,782 | $ 429,499 | zł 98,802 | kr 34,765 | Kč 86,121 | $ 25,729 | € 1,744 | ₺ 43,173 | R$ 41819 | ||||
Net investment hedge | Derivatives Designated as Hedging Instruments | Subsequent Event | Currency Swap | |||||||||||||
Derivative [Line Items] | |||||||||||||
Received a cash settlement | $ 11,634 | ||||||||||||
Foreign currency translation gain | 3,143 | ||||||||||||
Natural Gas Swaps | Derivatives Not Designated as Hedging Instruments | |||||||||||||
Derivative [Line Items] | |||||||||||||
Approximate amount of commodity covered by swap contracts outstanding (in MMBTUs) | MMBTU | 6,600 | ||||||||||||
Anticipated usage percentage covered by a swap contract for the current fiscal year (percent) | 87% | 87% | 87% | 87% | 87% | 87% | 87% | 87% | 87% | 87% | |||
Anticipated usage percentage covered by a swap contract for year two (percent) | 33% | 33% | 33% | 33% | 33% | 33% | 33% | 33% | 33% | 33% | |||
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 | 50 | ||||||||||||
Anticipated usage percentage covered by a swap contract for the current fiscal year (percent) | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% | |||
Approximate amount of commodity covered by swap contracts outstanding (in tons) | t | 355 | ||||||||||||
Currency Swap | Net investment hedge | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional amount | 500,000 | ||||||||||||
Gain (loss) on derivative used in net investment hedge, after tax | $ 4,850 | 5,073 | |||||||||||
Derivatives net of tax | 3,613 | 3,779 | |||||||||||
Net investment hedges, tax | $ (1,237) | $ 1,294 | |||||||||||
Currency Swap | Net investment hedge | Subsequent Event | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional amount | $ 500,000 |
Financial Instruments and Der_5
Financial Instruments and Derivatives - Schedule of Net Positions of Foreign Contracts (Details) - Mar. 31, 2024 - Cash Flow Hedging - Derivatives Designated as Hedging Instruments ₺ in Thousands, € in Thousands, £ in Thousands, zł in Thousands, kr in Thousands, kr in Thousands, R$ in Thousands, Kč in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | COP ($) | MXN ($) | PLN (zł) | DKK (kr) | SEK (kr) | CZK (Kč) | CAD ($) | EUR (€) | TRY (₺) | BRL (R$) | GBP (£) |
Derivative [Line Items] | |||||||||||
Purchase position of derivatives | $ 16,966,782 | $ 429,499 | zł 98,802 | kr 34,765 | Kč 86,121 | $ 25,729 | € 1,744 | ₺ 43,173 | R$ 41819 | ||
Sell position of derivatives | kr (4,855) | £ (800) |
Financial Instruments and Der_6
Financial Instruments and Derivatives - Schedule of Net Positions of Other Derivatives Contracts (Details) - Mar. 31, 2024 Rp in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | COP ($) | MXN ($) | CAD ($) | IDR (Rp) |
Derivatives Not Designated as Hedging Instruments | Purchase | ||||
Derivative [Line Items] | ||||
Purchase position of derivatives | $ 67,308,931 | $ 412,841 | $ 7,981 | Rp 19,814,218 |
Financial Instruments and Der_7
Financial Instruments and Derivatives - Schedule of Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Prepaid expenses | Commodity contracts | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 28 | $ 67 |
Prepaid expenses | Commodity contracts | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 103 | 12 |
Prepaid expenses | Foreign exchange contracts | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 2,323 | 2,525 |
Prepaid expenses | Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 5 | 130 |
Prepaid expenses | Net investment hedge | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 4,192 | 5,567 |
Other assets | Commodity contracts | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 250 | 0 |
Other assets | Net investment hedge | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 744 | 0 |
Accrued expenses and other | Commodity contracts | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (94) | (108) |
Accrued expenses and other | Commodity contracts | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (6,666) | (6,782) |
Accrued expenses and other | Foreign exchange contracts | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (626) | (1,024) |
Accrued expenses and other | Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (206) | (159) |
Other liabilities | Commodity contracts | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (176) | 0 |
Other liabilities | Net investment hedge | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ (86) | $ (10,640) |
Financial Instruments and Der_8
Financial Instruments and Derivatives - Schedule of Effect of Derivative Instruments on Financial Performance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized | $ 286 | $ (6,085) |
Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | 561 | 3,613 |
Foreign exchange contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized | 305 | 2,137 |
Foreign exchange contracts | Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | 436 | 1,062 |
Foreign exchange contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | (75) | (454) |
Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | (25) | (77) |
Commodity contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized | (2,558) | (9,708) |
Commodity contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | $ 0 | $ (32) |
Financial Instruments and Der_9
Financial Instruments and Derivatives - Schedule of Reclassification of Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | $ 1,637,543 | $ 1,729,783 |
Cost of sales | (1,299,990) | (1,355,355) |
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | 436 | 1,062 |
Cost of sales | (75) | (486) |
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | Foreign exchange contracts | Cash Flow Hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | 436 | 1,062 |
Cost of sales | (75) | (454) |
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | Commodity contracts | Cash Flow Hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | 0 | 0 |
Cost of sales | $ 0 | $ (32) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring basis - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives Designated as Hedging Instruments | Net investment hedge | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ 4,850 | $ (5,073) |
Derivatives Designated as Hedging Instruments | Assets measured at NAV | Net investment hedge | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Derivatives Designated as Hedging Instruments | Level 1 | Net investment hedge | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Derivatives Designated as Hedging Instruments | Level 2 | Net investment hedge | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 4,850 | (5,073) |
Derivatives Designated as Hedging Instruments | Level 3 | Net investment hedge | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Commodity contracts | Derivatives Designated as Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (66) | (41) |
Commodity contracts | 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 contracts | Derivatives Designated as Hedging Instruments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Commodity contracts | Derivatives Designated as Hedging Instruments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (66) | (41) |
Commodity contracts | Derivatives Designated as Hedging Instruments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Commodity contracts | Derivatives Not Designated as Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (6,489) | (6,770) |
Commodity contracts | 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 contracts | 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 contracts | Derivatives Not Designated as Hedging Instruments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (6,489) | (6,770) |
Commodity contracts | 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 contracts | Derivatives Designated as Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 1,697 | 1,502 |
Foreign exchange contracts | 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 contracts | 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 contracts | Derivatives Designated as Hedging Instruments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 1,697 | 1,502 |
Foreign exchange contracts | 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 contracts | Derivatives Not Designated as Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (201) | (29) |
Foreign exchange contracts | 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 contracts | 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 contracts | Derivatives Not Designated as Hedging Instruments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (201) | (29) |
Foreign exchange contracts | 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 - Schedu
Employee Benefit Plans - Schedule of Components of Net Periodic Benefit Cost/(Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 755 | $ 687 |
Interest cost | 4,709 | 4,294 |
Expected return on plan assets | (2,796) | (2,444) |
Amortization of prior service cost | 205 | 219 |
Amortization of net actuarial loss (gain) | 1,075 | 1,045 |
Effect of settlement loss | 0 | 686 |
Net periodic benefit cost/(income) | 3,948 | 4,487 |
Retiree Health and Life Insurance Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 54 | 62 |
Interest cost | 250 | 130 |
Expected return on plan assets | (98) | (79) |
Amortization of prior service cost | 96 | 0 |
Amortization of net actuarial loss (gain) | (146) | (193) |
Net periodic benefit cost/(income) | $ 156 | $ (80) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions | $ 3,989 | $ 4,931 |
Expected contributions for remainder of fiscal year | 16,300 | |
Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement losses recognized | 0 | 686 |
Sonoco Pension Plan for Inactive Participants | Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement losses recognized | $ 0 | $ 686 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 21.30% | 24.30% |
Increase of uncertain tax benefits | $ 137 | |
Possible decrease in reserve for unrecognized tax benefits | $ 9,432 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 option | Sep. 08, 2023 USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Number of renewal options | option | 1 | |
Lease term | 10 years | |
RTS Packaging and Chattanooga Mill | ||
Lessee, Lease, Description [Line Items] | ||
Lease liabilities | $ | $ 34,604 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal terms | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal terms | 5 years |
Leases - Schedule of Balance Sh
Leases - Schedule of Balance Sheet Location and Values of Company's Lease Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Leases [Abstract] | |||
Operating lease assets | $ 332,587 | $ 314,944 | [1] |
Finance lease assets | 92,684 | 94,026 | |
Total lease assets | 425,271 | 408,970 | |
Current operating lease liabilities | 55,269 | 54,803 | |
Current finance lease liabilities | 23,259 | 18,791 | |
Total current lease liabilities | 78,528 | 73,594 | |
Noncurrent operating lease liabilities | 282,877 | 265,454 | [1] |
Noncurrent finance lease liabilities | 63,955 | 70,203 | |
Total noncurrent lease liabilities | 346,832 | 335,657 | |
Total lease liabilities | $ 425,360 | $ 409,251 | |
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 - Schedule of Components
Leases - Schedule of Components of Company's Total Lease Costs and Other Lease Related Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Leases [Abstract] | ||
Operating lease cost | $ 16,192 | $ 13,411 |
Amortization of lease asset | 3,440 | 3,270 |
Interest on lease liabilities | 1,056 | 1,194 |
Variable lease cost | 10,100 | 9,378 |
Total lease cost | $ 30,788 | $ 27,253 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Terms, Discounts Rates and Other Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used by operating leases | $ 14,355 | $ 13,561 |
Operating cash flows used by finance leases | 1,056 | 1,194 |
Financing cash flows used by finance leases | 3,946 | 4,581 |
Leased assets obtained in exchange for new operating lease liabilities | 26,818 | 6,513 |
Leased assets obtained in exchange for new finance lease liabilities | 2,292 | 2,805 |
Modification to leased assets for increase in operating lease liabilities | 4,171 | 3,957 |
Termination reclasses to decrease operating lease assets | (1,202) | (2,029) |
Termination reclasses to decrease operating lease liabilities | (1,432) | (2,090) |
Termination reclasses to decrease finance lease assets | 0 | (962) |
Termination reclasses to decrease finance lease liabilities | $ 0 | $ (12) |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Payment terms | 120 days |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Effects of Contract Assets and Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | |||
Contract Assets | $ 53,170 | $ 54,334 | $ 56,008 |
Contract Liabilities | $ (21,758) | $ (24,973) | $ (22,423) |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Significant Changes in the Contract Assets and Liabilities Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Contract Asset | ||
Beginning Balance | $ 54,334 | $ 56,008 |
Increases due to rights to consideration for customer specific goods produced, but not billed during the period | 53,170 | 54,334 |
Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combinations | (54,334) | (56,008) |
Ending Balance | 53,170 | 54,334 |
Contract Liability | ||
Beginning Balance | (24,973) | (22,423) |
Acquired as part of a business combination | (1,436) | |
Revenue deferred or rebates accrued | (16,449) | (53,464) |
Recognized as revenue | 2,079 | 11,761 |
Rebates paid to customers | 17,585 | 40,589 |
Ending Balance | $ (21,758) | $ (24,973) |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,637,543 | $ 1,729,783 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,141,849 | 1,225,698 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 224,877 | 244,699 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 55,222 | 55,755 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 83,209 | 83,297 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 132,386 | 120,334 |
Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,503,637 | 1,573,863 |
Operating Segments | Consumer Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 910,577 | 958,008 |
Operating Segments | Industrial Paper Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 593,060 | 615,855 |
Operating Segments | United States | Consumer Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 677,915 | 737,791 |
Operating Segments | United States | Industrial Paper Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 354,366 | 360,780 |
Operating Segments | Europe | Consumer Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 112,787 | 118,840 |
Operating Segments | Europe | Industrial Paper Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 97,700 | 107,808 |
Operating Segments | Canada | Consumer Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 30,452 | 28,803 |
Operating Segments | Canada | Industrial Paper Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 24,770 | 26,952 |
Operating Segments | Asia | Consumer Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 25,905 | 24,136 |
Operating Segments | Asia | Industrial Paper Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 56,950 | 58,831 |
Operating Segments | Other | Consumer Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 63,518 | 48,438 |
Operating Segments | Other | Industrial Paper Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 59,274 | 61,484 |
All Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 133,906 | 155,920 |
All Other | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 109,568 | 127,127 |
All Other | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 14,390 | 18,051 |
All Other | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
All Other | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 354 | 330 |
All Other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 9,594 | $ 10,412 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,637,543 | $ 1,729,783 |
Operating profit | 112,453 | 229,648 |
Restructuring/Asset impairment charges | (31,618) | (28,814) |
Amortization of acquisition intangibles | (22,939) | (21,164) |
Gains from divestiture of business and other assets | 0 | 72,010 |
Acquisition, integration and divestiture-related costs | (5,661) | (5,188) |
Changes in LIFO inventory reserves | (431) | 5,425 |
Derivative gains/(losses) | 286 | (6,085) |
Other operating (charges)/income, net(3) | (3,180) | 43 |
Non-operating pension costs | (3,295) | (3,658) |
Interest expense | (31,220) | (34,232) |
Interest income | 3,558 | 1,562 |
Income before income taxes | 81,496 | 193,320 |
Intersegment sales | ||
Segment Reporting Information [Line Items] | ||
Net sales | 33,753 | 43,516 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,503,637 | 1,573,863 |
Operating profit | 158,871 | 190,861 |
Operating Segments | Intersegment sales | ||
Segment Reporting Information [Line Items] | ||
Net sales | 31,962 | 40,727 |
Operating Segments | Consumer Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 910,577 | 958,008 |
Operating profit | 93,027 | 96,494 |
Operating Segments | Consumer Packaging | Intersegment sales | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,545 | 2,007 |
Operating Segments | Industrial Paper Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 593,060 | 615,855 |
Operating profit | 65,844 | 94,367 |
Operating Segments | Industrial Paper Packaging | Intersegment sales | ||
Segment Reporting Information [Line Items] | ||
Net sales | 28,417 | 38,720 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 133,906 | 155,920 |
Operating profit | 17,125 | 22,560 |
All Other | Intersegment sales | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,791 | $ 2,789 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 149 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Site Contingency [Line Items] | ||
Environmental accrual | $ 7,226 | $ 7,251 |
Multiple Sites | ||
Site Contingency [Line Items] | ||
Environmental accrual | 2,001 | 1,992 |
Tegrant Holding Corporation | ||
Site Contingency [Line Items] | ||
Payment towards remediation of sites | 2,175 | |
Tegrant Holding Corporation | Spartanburg, South Carolina Site | ||
Site Contingency [Line Items] | ||
Environmental accrual | $ 5,225 | $ 5,259 |