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 Company froze participation in its U.S. qualified defined benefit pension plan for newly hired salaried and non-union hourly employees effective December 31, 2003. To replace this benefit, the Company provides non-union U.S. employees hired on or after January 1, 2004, with an annual contribution, called the Sonoco Retirement Contribution (SRC), to their participant accounts in the Sonoco Retirement and Savings Plan. Also eligible for the SRC are former participants of the U.S. qualified defined benefit pension plan who elected to transfer out of that plan under a one-time option effective January 1, 2010.

On February 4, 2009, the U.S. qualified defined benefit pension plan was amended to freeze plan benefits for all active participants effective December 31, 2018. Remaining active participants in the U.S. qualified plan became eligible for SRC contributions effective January 1, 2019.


	2018		2017		2016
Retirement Plans
Service cost	$	18,652	$	18,543	$	19,508
Interest cost	54,970		55,873		59,719
Expected return on plan assets	(91,021)		(81,212)		(85,466)

Amortization of prior service cost	916		910		809
Amortization of net actuarial loss	37,391		39,209		39,009
Effect of settlement loss	730		32,761		—
Effect of curtailment loss	256		—		—
Net periodic benefit cost	$	21,894	$	66,084	$	33,579
Retiree Health and Life Insurance Plans
Service cost	$	297	$	313	$	309
Interest cost	452		463		482
Expected return on plan assets	(1,135)		(1,636)		(1,579)
Amortization of prior service credit	(498)		(499)		(498)
Amortization of net actuarial gain	(1,120)		(759)		(667)
Net periodic benefit income	$	(2,004)	$	(2,118)	$	(1,953)


	Retirement Plans						Retiree Health and Life Insurance Plans
	2018		2017		2018		2017
Change in Benefit Obligation
Benefit obligation at January 1	$	1,837,938	$	1,777,424	$	15,691	$	17,568
Service cost	18,652		18,543		297		313
Interest cost	54,970		55,873		452		463
Plan participant contributions	429		391		620		744
Plan amendments	155		639		—		—
Actuarial loss/(gain)	(115,153)		99,402		(398)		(1,249)
Benefits paid	(93,053)		(81,547)		(2,569)		(2,183)
Impact of foreign exchange rates	(21,636)		29,753		(45)		35
Effect of settlements	(2,210)		(62,540)		—		—
Effect of curtailments	(253)		—		—		—
Acquisitions	4,438		—		—		—

Benefit obligation at December 31	$	1,684,277	$	1,837,938	$	14,048	$	15,691


	Retirement Plans						Retiree Health and Life Insurance Plans
	2018		2017		2018		2017
Change in Plan Assets
Fair value of plan assets at January 1	$	1,494,713	$	1,325,389	$	27,177	$	23,848
Actual return on plan assets	(78,447)		198,071		(915)		3,986
Company contributions	24,524		93,662		(13,302)		851
Plan participant contributions	429		443		620		744
Benefits paid	(93,053)		(81,547)		(2,569)		(2,183)
Impact of foreign exchange rates	(22,380)		29,460		—		—
Effect of settlements	(2,210)		(62,540)		—		—
Expenses paid	(6,670)		(8,225)		(92)		(69)
Acquisitions	1,926		—		—		—
Fair value of plan assets at December 31	$	1,318,832	$	1,494,713	$	10,919	$	27,177
Funded Status of the Plans	$	(365,445)	$	(343,225)	$	(3,129)	$	11,486

The negative contribution reported in 2018 for the Company's Retiree Health and Life Insurance Plans reflects $14,025 of cash withdrawn from a collectively bargained VEBA in 2018 pursuant to an IRS private letter ruling dated April 1, 2018, permitting the Company to amend the VEBA to provide benefits to active, non-collectively bargained employees in addition to retired collectively bargained employees.


	Retirement Plans						Retiree Health and Life Insurance Plans
	2018		2017		2018		2017
Total Recognized Amounts in the Consolidated Balance Sheets
Noncurrent assets	$	18,520	$	24,380	$	—	$	12,851
Current liabilities	(12,935)		(13,220)		(983)		(820)
Noncurrent liabilities	(371,030)		(354,385)		(2,146)		(545)
Net (liability)/asset	$	(365,445)	$	(343,225)	$	(3,129)	$	11,486


	Retirement Plans						Retiree Health and Life Insurance Plans
	2018		2017		2018		2017
Net actuarial loss/(gain)	$	646,254	$	625,831	$	(6,964)	$	(9,822)
Prior service cost/(credit)	5,514		3,780		(777)		(1,275)

	$	651,768	$	629,611	$	(7,741)	$	(11,097)


	Retirement Plans										Retiree Health and Life Insurance Plans
	2018		2017		2016		2018		2017		2016
Adjustments arising during the period:
Net actuarial loss/(gain)	$	58,544	$	(10,732)	$	56,060	$	1,738	$	(3,525)	$	(1,449)
Prior service cost/(credit)	2,906		639		1,069		—		—		—
Net settlements/curtailments	(986)		(32761)		—		—		—		—
Reversal of amortization:
Net actuarial (loss)/gain	(37,391)		(39,209)		(39,009)		1,120		759		667
Prior service (cost)/credit	(916)		(910)		(809)		498		499		498

Total recognized in other comprehensive loss/(income)	$	22,157	$	(82,973)	$	17,311	$	3,356	$	(2,267)	$	(284)
Total recognized in net periodic benefit cost and other comprehensive loss/(income)	$	44,051	$	(16,889)	$	50,890	$	1,352	$	(4,385)	$	(2,237)

The projected benefit obligation (PBO), accumulated benefit obligation (ABO) and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were, $1,397,040, $1,391,129 and $1,013,173, respectively, as of December 31, 2018, and $1,554,395, $1,538,350 and $1,186,789, respectively, as of December 31, 2017.


Weighted-average assumptions used to determine benefit obligations at December 31	U.S. Retirement Plans		U.S. Retiree Health and Life Insurance Plans		Foreign Plans
Discount Rate
2018	4.24	%	4.02	%	3.11	%
2017	3.59	%	3.36	%	2.78	%
Rate of Compensation Increase
2018	—	%	3.06	%	3.65	%
2017	3.40	%	3.28	%	3.62	%


Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31	U.S. Retirement Plans		U.S. Retiree Health and Life Insurance Plans		Foreign Plans
Discount Rate
2018	3.59	%	3.36	%	2.78	%
2017	4.12	%	3.70	%	2.95	%
2016	4.36	%	3.78	%	3.71	%
Expected Long-term Rate of Return
2018	6.87	%	6.95	%	4.84	%
2017	6.86	%	6.98	%	4.52	%
2016	7.47	%	7.31	%	4.75	%
Rate of Compensation Increase
2018	3.40	%	3.28	%	3.62	%
2017	3.60	%	3.32	%	3.65	%
2016	3.69	%	3.36	%	3.52	%

The Company adjusts its discount rates at the end of each fiscal year based on yield curves of high-quality debt instruments over durations that match the expected benefit payouts of each plan. The expected long-term rate of return assumption is based on the Company’s current and expected future portfolio mix by asset class, and expected nominal returns of these asset classes using an economic “building block” approach. Expectations for inflation and real interest rates are developed and various risk premiums are assigned to each asset class based primarily on historical performance. The expected long-term rate of return also gives consideration to the expected level of outperformance to be achieved on that portion of the Company’s investment portfolio under active management. The assumed rate of compensation increase reflects historical experience and management’s expectations regarding future salary and incentive increases.


Healthcare Cost Trend Rate	Pre-age 65		Post-age 65
2018	6.50	%	6.50	%
2017	6.75	%	6.75	%
Ultimate Trend Rate	Pre-age 65		Post-age 65
2018	4.50	%	4.50	%
2017	4.50	%	4.50	%
Year at which the Rate Reaches the Ultimate Trend Rate	Pre-age 65		Post-age 65
2018	2026		2026
2017	2026		2026

Increasing the assumed trend rate for healthcare costs by one percentage point would increase the accumulated postretirement benefit obligation (the APBO) and total service and interest cost component approximately $128 and $11, respectively. Decreasing the assumed trend rate for healthcare costs by one percentage point would decrease the APBO and total service and interest cost component approximately $119 and $10, respectively. Based on amendments to the U.S. plan approved in 1999, which became effective in 2003, cost increases borne by the Company are limited to the Urban CPI, as defined.

The Company recognized settlement charges totaling $730 in 2018 resulting primarily from payments made to certain participants of the Company's Canadian pension plan who elected a lump sum distribution option upon retirement.

In February 2017, the Company initiated a program to settle a portion of the projected benefit obligation (PBO) relating to terminated vested participants in the U.S. qualified retirement plans through either a single, lump-sum payment or the purchase of an annuity. The terminated vested population comprised approximately 15% of the beginning of year PBO of these plans. The Company successfully settled approximately 47% of the PBO for the terminated vested plan participants. As a result of these and other smaller settlements, the Company recognized non-cash settlement charges of $32,761 in 2017. All settlement payments were funded from plan assets and did not require the Company to make any additional cash contributions.


Asset Category			U.S.				U.K.				Canada
Equity securities	2018		48.3	%			38.9	%			55.4	%
		2017			51.7	%			44.7	%			71.7	%
Debt securities	2018		38.4	%			60.5	%			44.0	%
		2017			37.1	%			54.7	%			27.9	%
Alternative	2018		13.3	%			—	%			—	%
		2017			11.2	%			—	%			—	%
Cash and short-term investments	2018		—	%			0.6	%			0.6	%
		2017			—	%			0.6	%			0.4	%
Total	2018		100.0	%			100.0	%			100.0	%
		2017			100.0	%			100.0	%			100.0	%

The Company employs a total-return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a desired level of risk. Alternative assets such as real estate funds, private equity funds and hedge funds are used to enhance expected long-term returns while improving portfolio diversification. Risk tolerance is established through consideration of plan liabilities, plan funded status and corporate financial condition. Investment risk is measured and monitored on an ongoing basis through periodic investment portfolio reviews and periodic asset/liability studies.

The equity investments consist of direct ownership and funds and are diversified among U.S. and non-U.S. stocks of small to large capitalizations. Following the December 2010 amendment that split the U.S. qualified defined benefit pension plan into the Active Plan and the Inactive Plan effective January 1, 2011, the Company completed separate asset/liability studies for both plans during 2011 and adopted revised investment guidelines for each. The revised guidelines establish a dynamic de-risking framework that will gradually shift the allocation of assets to long-duration domestic fixed income from equity and other asset categories, as the relative funding ratio of each plan increases over time. The current target allocation (midpoint) for the Inactive Plan investment portfolio is: Equity Securities – 49%, Debt Securities – 40%, Alternative – 11% and Cash – 0%. The current target allocation (midpoint) for the Active Plan investment portfolio is: Equity Securities – 57%, Debt Securities – 30%, Alternative – 13% and Cash – 0%.

The equity investments consist of direct ownership and funds and are diversified among U.K. and international stocks of small and large capitalizations. The current target allocation (midpoint) for the investment portfolio is: Equity Securities – 48%, Debt Securities – 52%, Alternative – 0% and Cash – 0%.

The equity investments consist of direct ownership and funds and are diversified among Canadian and international stocks of primarily large capitalizations and short to intermediate duration corporate and government bonds. The current target allocation (midpoint) for the investment portfolio is: Equity Securities – 53%, Debt Securities – 45%, Alternative – 0% and Cash – 2%.

Based on current actuarial estimates, the Company anticipates that the total contributions to its retirement plans and retiree health and life insurance plans, excluding contributions to the Sonoco Savings Plan, will be approximately $31,000 in 2019. No assurances can be made, however, about funding requirements beyond 2019, as they will depend largely on actual investment returns and future actuarial assumptions.

The elective component of the plan, which is designed to meet the requirements of section 401(k) of the Internal Revenue Code, allows participants to set aside a portion of their wages and salaries for retirement and encourages saving by matching a portion of their contributions with contributions from the Company. The plan provides for participant contributions of 1% to 100% of gross pay. Since January 1, 2010, the Company has matched 50% on the first 4% of compensation contributed by the participant as pretax contributions which are immediately fully vested. The Company’s expenses related to the plan for 2018, 2017 and 2016 were approximately $12,500, $11,200 and $11,400, respectively.

The non-elective component of the plan, the Sonoco Retirement Contribution (SRC), is available to certain employees who are not currently active participants in the Company’s U.S. qualified defined benefit pension plan. The SRC provides for an annual Company contribution of 4% of all eligible pay plus 4% of eligible pay in excess of the Social Security wage base to eligible participant accounts. Participants are fully vested after three years of service or upon reaching age 55, if earlier. The Company’s expenses related to the plan for 2018, 2017 and 2016 were approximately $14,995, $14,540 and $13,655, respectively. Cash contributions to the SRC totaled $14,151, $14,066 and $13,352 in 2018, 2017 and 2016, respectively.

The Company also provides retirement and postretirement benefits to certain other non-U.S. employees through various Company-sponsored and local government sponsored defined contribution arrangements. For the most part, the liabilities related to these arrangements are funded in the period they arise. The Company’s expenses for these plans were not material for all years presented.