1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C.
20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1994 COMMISSION FILE NUMBER 1-11261
SONOCO PRODUCTS COMPANY
INCORPORATED UNDER THE LAWS I.R.S. EMPLOYER IDENTIFICATION
OF SOUTH CAROLINA NO. 57-0248420
POST OFFICE BOX 160
HARTSVILLE, SOUTH CAROLINA 29551-0160
TELEPHONE: 803-383-7000
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
Title of each class Name of exchange on which registered *
------------------- ------------------------------------
No par value common stock New York Stock Exchange, Inc.
Series A Cumulative Preferred Stock New York Stock Exchange, Inc.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. [ ]
The aggregate market value of voting stock held by nonaffiliates of the
registrant (based on the New York Stock Exchange closing price) on March 8,
1995, was $1,940,884,018.
As of March 8, 1995, there were 86,767,859 shares of no par value common stock
outstanding.
Documents Incorporated by Reference
Portions of the Annual Report to Shareholders for the fiscal year
December 31, 1994, are incorporated by reference in Parts I, II and IV;
portions of the Proxy Statement for the annual meeting of shareholders to
be held on April 19, 1995, are incorporated by reference in Part III.
*The Company's stock began trading on the New York Stock Exchange, Inc. on
March 8, 1995.
2
SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
PART I
ITEM I. BUSINESS
The Company
The Company, a South Carolina corporation founded in Hartsville, South
Carolina, in 1899, is a major multinational manufacturer of
paperboard-based and plastic-based packaging products. The Company is
also vertically integrated into paperboard production and
recovered-paper collection. The paperboard utilized in the Company's
packaging products is produced substantially from recovered paper.
The Company operates an extensive network of plants in the United
States and has subsidiaries in Europe, Canada, Mexico, South America,
Australia and Asia, and affiliates in Canada, Japan and France. The
Company's business is organized by global product lines in order to
leverage its U.S. customer base, to take advantage of synergies from
its worldwide operations and to serve its customers worldwide on a
timely basis and with consistent quality.
The Company serves a wide variety of industrial and consumer markets.
Industrial markets, which represented approximately 58% of the
Company's sales in 1994, include paper manufacturers, chemical and
pharmaceutical producers, textile manufacturers, automotive
manufacturers, the wire and cable industry, and the building and
construction industry. Consumer markets, which represented
approximately 42% of the Company's sales in 1994, include food and
beverage processors, the personal and health care industries,
supermarkets, retail outlets, household good manufacturers and
consumer electronics. The Company believes that it is a leading
producer in most markets served. One of the Company's strategic goals
is to increase the proportion of consumer markets product sales in
order to change the business mix between industrial and consumer
markets to 50/50.
In 1994 the Company changed its segmental reporting by combining the
Miscellaneous segment with the Converted Products segment. The
Company determined the operations in both segments were converting
businesses and, given the small size of the Miscellaneous segment,
separate reporting was no longer appropriate. The Company's operations
are now divided into three segments (two domestic and one
international) for financial reporting purposes. Domestic segments
include Converted Products and Paper. The Financial Reporting For
Business Segments Table as shown in the Company's 1994 Annual Report
to Shareholders, which is included as Exhibit 13, presents selected
financial data by major lines of business or segments for each of the
past three fiscal years. This table is hereby incorporated by
reference herein and should be read in conjunction with the
Management's Discussion and Analysis of the 1994 Annual Report to
Shareholders, which is also hereby incorporated by reference herein.
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM I. BUSINESS, CONTINUED
Acquisitions/Dispositions
Acquisitions and business combinations have been, and are expected to
continue to be, an important part of the Company's strategy for
growth. Significant acquisitions during the past five years include
the 1990 acquisition of Lhomme S.A. in France, which was the leading
French manufacturer of paperboard, tubes and cores. In January 1992,
the Company purchased the Trent Valley paper mill in Trenton, Ontario,
Canada. This purchase provided the Company with a modern machine that
allows for the production of higher grades of paper. In January 1993,
the Company purchased all of the outstanding stock of Crellin Holding,
Inc., an international manufacturer, designer and marketer of molded
plastic products. In January 1993, the Company also completed the
acquisition of the OPV/Durener Group, Germany's second largest
manufacturer of tubes and cores. In October 1993, the Company
acquired Engraph, Inc. following the successful conclusion of a cash
tender-offer and merger transaction. Engraph markets
pressure-sensitive labels and package inserts, flexible packaging,
screen process printing and paperboard cartons and specialities. In
May 1994, the Company acquired M. Harland & Son Limited, a leading
producer of pressure-sensitive roll labels and roll-label application
equipment headquartered in the United Kingdom.
Subsequent to December 31, 1994, the Company acquired the remaining
50% interest in the CMB Sonoco joint venture. CMB Sonoco is a
producer of composite cans with manufacturing facilities in the U.K.
and France. Also subsequent to December 31, 1994, the Company
purchased a flexible packaging plant in Edinburgh, Indiana.
Competition
The Company believes it has several competitive advantages in the
industrial and consumer Converted Products markets it serves. First,
the Company sells many products within the Converted Products segment
globally. As a result, the Company believes it has the capability to
respond effectively to customers seeking national or international
supply agreements. Secondly, the Company believes its technological
leadership, reputation for quality, and vertical integration has
enabled the Company to coordinate its product development and global
expansion with the rapidly changing needs of its major customers, who
demand high-quality, state-of-the-art, environmentally compatible
packaging. Thirdly, the Company and its customers have developed
international standards to reduce costs and increase quality.
Finally, the Company believes that its strategy of vertical
integration, via the Paper segment, increases its control over the
availability and quality of raw materials used in its products. With
the acquisition of Engraph, the Company entered into a major new
business that expands the Company's opportunities for growth in new
packaging fields.
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM I. BUSINESS, CONTINUED
Competition, Continued
The Company is the U.S. market leader in nearly all of its traditional
businesses, including the manufacture of tubes, cores and cones; fibre
and plastic drums; and nailed wood and metal reels. The Company is
the second leading producer of fibre partitions. The Paper Division is
also one of the world's leading producers of recycled paperboard, most
of which is consumed internally. Sonoco has a strong degree of
vertical integration with the paper-converting business. This tactic,
combined with advancing technology, helps to keep the Company a
competitive producer.
Having operated internationally for more than 70 years, the
International segment has been important in the Company's ability to
serve and retain many of its customers that have international
packaging requirements. The Company considers its ability to serve
its customers worldwide in a timely, consistent and cost-effective
manner a competitive advantage. The Company expects its international
activities to provide an increasing portion of its future growth.
The Company is the largest United States producer of high-density,
high-molecular weight plastic carry-out grocery bags. The Company
sponsors recycling programs for the plastic carrier bag industry and
has relationships with what it believes to be approximately one-half
of all participating U.S. supermarkets offering a bag recycling
program. Other similar products produced by the Company include roll
bags for produce and bakery requirements, plastic bags for convenience
stores and high-volume retail outlets, and agricultural film. During
1994 a major competitor curtailed production of plastic grocery bags,
creating a decrease in available supply. The Company authorized a
$20-million investment to replace some of this capacity and improve
production.
The Company's products are sold in highly competitive market
environments. Within each of these markets, supply and demand are the
major factors controlling the market environment. Additionally, and to
a lesser degree, these markets are influenced by the overall rate of
economic activity. Throughout the year, the Company remained highly
competitive within each of the markets served. None of the Company's
segments is seasonal to any significant degree. The Management's
Discussion and Analysis of the 1994 Annual Report to Shareholders
discusses competition with respect to the various segments of the
Company and is hereby incorporated by reference herein.
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM I. BUSINESS, CONTINUED
Raw Materials
The principal raw materials used by the Company are plastic resins,
metal, pulpwood, recovered paper and paper. With the exception of
pulpwood, recovered paper and paper, the Company's raw materials and
supplies are purchased from a number of outside sources; however, the
supply is considered adequate to meet the Company's requirements.
Company-owned timberlands, timber-cutting rights and suppliers are
believed to be sufficient to assure the future availability of
pulpwood. Recovered paper used in the manufacture of paperboard is
purchased either directly from suppliers near manufacturing operations
or through the Company's subsidiary, Paper Stock Dealers, Inc.
Although the Company considers the supply of raw materials to be
adequate to meet its needs, the majority of raw materials are subject
to price volatility as experienced in 1994. Recovered paper, the
Company's largest raw material, nearly tripled in cost during 1994.
This unprecedented rate of increase began in the second quarter and
quickly peaked early in the third quarter. Selling price increases
were implemented in the third quarter, resulting in improved gross
margin percentages in the fourth quarter. The Company was not able to
recover all of the cost increases in 1994, but ended the year
basically in balance. The recovered paper market remains volatile;
the demand for recovered paper continues to grow due to increased
demand for recycled content in most paper grades and an increased
demand in export markets. Although cost pressures on recovered paper
are expected to be a continuing factor, the Company expects to be able
to mitigate any adverse earnings impact over time through selling
price increases. The Company also took actions in 1994 to strengthen
its fibre recovery system. These actions are described in the
Recovered Paper section of the Industrial Packaging Review of the
Annual Report and is hereby incorporated by reference herein.
Other key raw materials include plastic resins, steel, aluminum,
liners and labels. All increased in cost at varying degrees during
the year. Resin prices increased dramatically in 1994, resulting in
several selling price increases. The Company does have certain
contracts that, while providing for price increases, preclude the
immediate recovery of these additional costs. However, the Company
does expect to recover cost increases as these contracts expire early
in 1995.
Backlog
Most customer orders are manufactured with a lead time not to exceed
three weeks. Long-term contracts, primarily for composite cans, exist
for approximately 14% of trade sales (no one contract exceeds 3%).
These contracts, which are for a specific duration, generally include
price escalation provisions for raw materials, labor and overhead
costs. There are no significant long-term purchase contracts as the
Company considers the supply of raw materials adequate to meet its
needs.
Patents, Trademarks and Related Contracts
No segment of the business is materially dependent upon the existence
of patents, trademarks or related contracts.
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM I. BUSINESS, CONTINUED
Research and Development
The Company has 124 employees engaged in new product development and
technical support for existing product lines. Company-sponsored
spending in this area was $12.1 million, $12.9 million and $11.7
million in 1994, 1993, and 1992, respectively. Spending focused on
projects related to Sonoco's primary businesses and reflects a
commitment to ensure that the Company is the technology leader in
markets served. Customer-sponsored spending has been immaterial for
the past three years.
Environmental Protection
The Financial Position, Liquidity and Capital Resources section of the
Management's Discussion and Analysis in the 1994 Annual Report to
Shareholders provides the required information and is hereby
incorporated by reference.
Employees
The number of employees at December 31, 1994, was approximately 17,200.
Financial Information about Foreign and Domestic Operations and Export
Sales
The Company has subsidiaries and affiliates operating in twenty-three
countries. The primary operations of the international subsidiaries
are similar to the Company's domestic business in products and markets
served. The Management's Discussion and Analysis, the Financial
Reporting for Business Segments and Note 17 to the Financial
Statements of the Annual Report to Shareholders are hereby
incorporated by reference herein. United States export sales are
immaterial.
I-5
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM 2. PROPERTIES
The main plant and corporate offices are located in Hartsville, South
Carolina. The Company has 172 branch or manufacturing operations in
the United States, 26 in Canada and 68 in 21 international countries.
Information about the Company's manufacturing operations by segment
follows:
Segment
-------------------------------------------
Converted
Products Paper International
----------- ----- -------------
Number of Plants:
Owned fee simple 71 27 46
Leased for terms up to ten years
with options to renew for
additional terms 65 5 48
Leased with lease purchase agreements 3 1
--- -- --
Total manufacturing operations 139 33 94
=== == ==
The Company believes that its properties are suitable and adequate for
current needs and that the total productive capacity is adequately
utilized.
ITEM 3. LEGAL PROCEEDINGS
In the normal course of business, the Company is a party to various
legal proceedings incidental to its business and is subject to a
variety of environmental and pollution control laws and regulations
in all jurisdictions in which it operates. On May 3, 1994, a civil
action was filed against the Company in the United States District
Court for the District of Massachusetts by Integrated Bagging Systems
Corporation and BPI Packaging Technologies, Inc. for alleged patent
infringement. The suit also seeks to have a patent owned by the
Company declared invalid. There are no new developments in this
matter, and the Company believes this lawsuit is without merit. The
Company will vigorously defend its position and expects to prevail.
Although the level of future expenditures for legal and environmental
matters is impossible to determine with any degree of probability, it
is management's opinion that such costs, when finally determined, will
not have a material adverse effect on the consolidated financial
position of the Company.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
Market and Market Prices of Common Stock
The Company's common stock began trading on the New York Stock
Exchange (NYSE) March 8, 1995, under the stock symbol "SON." Prior to
that date, the common stock was traded on the NASDAQ National Market
System. The Comparative Highlights in the 1994 Annual Report to
Shareholders (Exhibit 13 of this report) shows, by quarter, the high
and low price on the NASDAQ market for the latest two years, and is
hereby incorporated by reference herein.
Approximate Number of Security Holders
There were approximately 34,000 shareholder accounts as of March 5,
1995.
Dividends
The Comparative Highlights in the 1994 Annual Report to Shareholders
is hereby incorporated by reference herein. There are certain
restrictions with respect to the maintenance of financial ratios and
the disposition of assets in several of the Company's loan agreements
that may affect the Company's ability to pay dividends. The most
restrictive covenant requires that tangible net worth at the end of
each fiscal quarter be greater than $365 million. The Company is
prohibited from paying cash dividends if these requirements are not
met. Additionally, the terms of the Company's $2.25 Series A
Cumulative Convertible Preferred Stock prohibits payment of dividends
on any junior class of stock, including the Company's Common Stock,
unless full cumulative dividends on the $2.25 Series A Cumulative
Convertible Preferred Stock have been paid or declared and set aside
for payment for all past dividend payment periods.
ITEM 6. SELECTED FINANCIAL DATA
The Selected Eleven-Year Financial Data in the 1994 Annual Report to
Shareholders provides the required data, and is hereby incorporated by
reference herein.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The information presented under Management's Discussion and Analysis
of the 1994 Annual Report to Shareholders is hereby incorporated by
reference herein.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Report of Independent Accountants.
II-1
9
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Directors of
Sonoco Products Company:
We have audited the consolidated financial statements of Sonoco Products
Company as of December 31, 1994 and 1993, and for each of the three years in
the period ended December 31, 1994, which financial statements are included on
pages 28 through 37 of the 1994 Annual Report to Shareholders of Sonoco
Products Company and incorporated by reference herein. We have also audited the
financial statement schedule listed in Item 14 of this form 10-K. These
consolidated financial statements and financial statement schedule are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these consolidated financial statements and financial statement
schedule based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Sonoco Products
Company as of December 31, 1994 and 1993, and the consolidated results of its
operations and its cash flows for each of the three years in the period ended
December 31, 1994, in conformity with generally accepted accounting principles.
In addition, in our opinion, the financial statement schedule referred to
above, when considered in relation to the basic financial statements taken as a
whole, presents fairly, in all material respects, the information required to
be included therein.
As discussed in Notes 14 and 15 to the consolidated financial statements, the
Company changed its method of accounting for postretirement benefits other than
pensions and income taxes in 1992.
/s/ Coopers & Lybrand, L.L.P.
-----------------------------
COOPERS & LYBRAND, L.L.P.
Charlotte, North Carolina
February 1, 1995
II-2
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA, CONTINUED
Consolidated Financial Statements
The consolidated financial statements and notes to consolidated
financial statements for the Company included in the 1994 Annual
Report to Shareholders are hereby incorporated by reference herein.
Supplementary Financial Data
The Comparative Highlights in the 1994 Annual Report to Shareholders
is hereby incorporated by reference herein.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
II-3
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Identification of Directors
Information about the Directors of the Company and Compliance with the
Securities Exchange Act of 1934 is shown on pages 5 through 10 and
page 30, respectively, of the Definitive Proxy Statement (included as
Exhibit 99-1 of this report) and is hereby incorporated by reference
herein.
Identification of Executive Officers
YEAR FIRST
ELECTED BUSINESS EXPERIENCE
NAME AGE POSITION OFFICER DURING LAST FIVE YEARS
---- --- -------- ----------- ----------------------
C. W. Coker 61 Chairman of the 1961 Present position since 1990, previously
Board, President and having served as President since 1970.
Chief Executive Officer
T. C. Coxe, III 64 Senior Executive 1977 Present position since 1993, previously
Vice President having served as Executive Vice
President since 1985.
L. Benatar 65 Senior Vice President 1993 Present position since 1993. Chairman and Chief
Executive Officer of Engraph, Inc. (printer and
fabricator of roll labels, decals, specialty
paperboard items and flexible packaging) since
1981.
P. C. Browning 53 Executive Vice 1993 Present position since 1993, previously
President - Global having served as President, Chairman and
Industrial Products Chief Executive Officer - National
and Paper Divisions Gypsum Company (manufacturer and supplier of
products and services used in building and
construction) since 1990.
C. W. Claypool 59 Vice President - 1987 Present position since 1987.
Paper Division
P. C. Coggeshall, Jr. 51 Vice President - 1979 Present position since 1991, previously
Administration having served as Group Vice President -
Industrial Products Division since 1986.
III-1
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT, CONTINUED
YEAR FIRST
ELECTED BUSINESS EXPERIENCE
NAME AGE POSITION OFFICER DURING LAST FIVE YEARS
---- --- -------- ------------ ----------------------
H. E. DeLoach, Jr. 50 Group Vice President 1986 Present position since 1993, previously having
served as Vice President - Film, Plastics and
Special Products since 1993, and Vice
President - High Density Film Products
Division since 1989.
R. C. Eimers, Ph.D. 47 Vice President - 1988 Present position since 1988. Resigned
Human Resources February 1, 1995.
F. T. Hill, Jr. 42 Vice President - 1987 Present position since January 1994,
Finance previously having served as Vice
President - Industrial Products North
America since 1990.
R. E. Holley 52 Vice President - 1987 Present position since 1993, previously
High Density having served as Vice President - Total
Film Products Quality Management since 1990.
J. R. Kelley 40 Vice President - 1994 Present position since January 1994,
Industrial Products previously having served as Division
Division - North Vice President - Industrial Container
America since 1990.
H. J. Moran 62 Group Vice President - 1987 Present position since 1993, previously
Consumer having served as Vice President and
Packaging Group General Manager - Consumer Packaging
since 1990.
III-2
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT, CONTINUED
YEAR FIRST
ELECTED BUSINESS EXPERIENCE
NAME AGE POSITION OFFICER DURING LAST FIVE YEARS
---- --- -------- ------------ ----------------------
E. P. Norman, Jr. 58 Vice President - 1989 Present position since 1989.
Technology
J. L. Coker 54 Corporate 1969 Present position since 1969.
Secretary
C. J. Hupfer 48 Treasurer 1988 Present position since 1988.
Family Relationships
C. W. Coker and F. L. H. Coker are brothers and the first cousins of
J. L. Coker and P. C. Coggeshall, Jr.
ITEM 11. EXECUTIVE COMPENSATION
Executive Compensation - Directors and Officers as shown on pages 13 -
21 of the Proxy Statement, included as Exhibit 99-1 of this report, is
hereby incorporated by reference herein.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The security ownership of management as shown on page 12 of the Proxy
Statement, Exhibit 99-1 of this report, is hereby incorporated by
reference herein.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Transactions with management as shown on pages 22 - 23 of the Proxy
Statement, included as Exhibit 99-1 of this report, is hereby
incorporated by reference herein.
III-3
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
Data incorporated by reference from the
attached 1994 Annual Report to Shareholders
(included as Exhibit 13 of this report):
Comparative Highlights (Selected Quarterly
Financial Data)
Consumer Packaging Review
Industrial Packaging Review
Management's Discussion and Analysis of
Financial Condition and Results of
Operations
Consolidated Balance Sheets as of
December 31, 1994 and 1993
Consolidated Statements of Income for
the years ended December 31, 1994, 1993 and 1992
Consolidated Statements of Changes in
Shareholders' Equity for the years ended
December 31, 1994, 1993 and 1992
Consolidated Statements of Cash Flows
for the years ended December 31, 1994,
1993 and 1992
Notes to Consolidated Financial Statements
Shareholders' Information (Selected Financial Data)
Data submitted herewith:
Report of Independent Accountants (included under Item 8)
IV-1
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
FORM 8-K, CONTINUED
Financial Statement Schedule:
Schedule II - Valuation and Qualifying Accounts
All other schedules are omitted because they
are not required, are not applicable or the
required information is given in the
financial statements or notes thereto.
Exhibits:
---------
3 Articles of Incorporation and By-laws
4 Instruments Defining the Rights of
Securities Holders, including Indentures *
11 Computation of Earnings Per Share
13 1994 Annual Report to Shareholders
21 Subsidiaries and Affiliates of the Registrant
23 Consent of Independent Accountants
27 Financial Data Schedule
99-1 Proxy Statement, filed in conjunction
with annual shareholders' meeting
scheduled for April 19, 1995
99-2 Form 11-K Annual Report - 1983 and
1991 Sonoco Products Company Key
Employee Stock Option Plans
* Incorporated by reference to the Registrant's Form S-3 (File No. 33-50501).
IV-2
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
FORM 8-K, CONTINUED
Reports on Form 8-K
No reports on Form 8-K were filed by the Company during the fourth quarter of
1994.
IV-3
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992
(DOLLARS IN THOUSANDS)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
-------- -------- -------- -------- --------
BALANCE ADDITIONS
AT CHARGED BALANCE
BEGINNING TO AT
OF COSTS AND DEDUC- END OF
DESCRIPTION PERIOD EXPENSES TIONS(1) PERIOD
----------- --------- -------- ------- ------
1994
----
Restructuring Reserve $27,114 $ $16,191 $10,923
======= ======= ======= =======
Goodwill Amortization $24,403 $13,030 $ 3,097 $34,336
======= ======= ======= =======
Allowance for Doubtful
Accounts $ 6,514 $ 2,546 $ 3,002 $ 6,058
======= ======= ======= =======
1993
----
Restructuring Reserve $39,130 $ $12,016 $27,114
======= ======= ======= =======
Goodwill Amortization $22,040 $ 8,024 $ 5,661 $24,403
======= ======= ======= =======
Allowance for Doubtful
Accounts $ 3,511 $ 5,537 $ 2,534 $ 6,514
======= ======= ======= =======
1992
----
Restructuring Reserve $ 9,871 $42,000 $12,741 $39,130
======= ======= ======= =======
Goodwill Amortization $19,333 $ 3,854 $ 1,147 $22,040
======= ======= ======= =======
Allowance for Doubtful
Accounts $ 3,671 $ 1,737 $ 1,897 $ 3,511
======= ======= ======= =======
(1) Includes amounts written off, translation adjustments and payments.
IV-4
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized, on this 30th day of March
1995.
SONOCO PRODUCTS COMPANY
/s/ C. W. Coker
---------------------------------
C. W. Coker
Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report is signed below by the following person on behalf of the Registrant and
in the capacities indicated on this 30th day of March 1995.
/s/ F. T. Hill, Jr.
--------------------------------
F. T. Hill, Jr.
Vice President - Finance
(Principal Accounting Officer)
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
SIGNATURES, CONTINUED
/s/ C. W. Coker Chief Executive Officer and
------------------------ Director (Principal Executive Officer)
C. W. Coker
/s/ T. C. Coxe, III Senior Executive Vice President and
------------------------ Director (Principal Financial Officer)
T. C. Coxe, III
/s/ L. Benatar Director
------------------------
L. Benatar
/s/ C. J. Bradshaw Director
------------------------
C. J. Bradshaw
/s/ R. J. Brown Director
------------------------
R. J. Brown
Director
------------------------
F. L. H. Coker
/s/ J. L. Coker Director
------------------------
J. L. Coker
/s/ A. T. Dickson Director
------------------------
A. T. Dickson
/s/ R. E. Elberson Director
------------------------
R. E. Elberson
/s/ J. C. Fort Director
------------------------
J. C. Fort
/s/ P. Fulton Director
------------------------
P. Fulton
/s/ R. C. King, Jr. Director
------------------------
R. C. King, Jr.
Director
------------------------
E. H. Lawton, Jr.
/s/ H. L. McColl, Jr. Director
------------------------
H. L. McColl, Jr.
/s/ E. C. Wall, Jr. Director
------------------------
E. C. Wall, Jr.
IV-6