QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation of organization) | (I.R.S. Employer Identification No.) | |||||||
(address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 6. |
October 2, 2022 | December 31, 2021 | |||||||||||||
Assets | ||||||||||||||
Current Assets | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Trade accounts receivable, net of allowances | ||||||||||||||
Other receivables | ||||||||||||||
Inventories, net: | ||||||||||||||
Finished and in process | ||||||||||||||
Materials and supplies | ||||||||||||||
Prepaid expenses | ||||||||||||||
Property, Plant and Equipment, Net | ||||||||||||||
Goodwill | ||||||||||||||
Other Intangible Assets, Net | ||||||||||||||
Deferred Income Taxes | ||||||||||||||
Right of Use Asset-Operating Leases | ||||||||||||||
Other Assets | ||||||||||||||
Total Assets | $ | $ | ||||||||||||
Liabilities and Equity | ||||||||||||||
Current Liabilities | ||||||||||||||
Payable to suppliers | $ | $ | ||||||||||||
Accrued expenses and other | ||||||||||||||
Notes payable and current portion of long-term debt | ||||||||||||||
Accrued taxes | ||||||||||||||
Long-term Debt, Net of Current Portion | ||||||||||||||
Noncurrent Operating Lease Liabilities | ||||||||||||||
Pension and Other Postretirement Benefits | ||||||||||||||
Deferred Income Taxes | ||||||||||||||
Other Liabilities | ||||||||||||||
Sonoco Shareholders’ Equity | ||||||||||||||
Common stock, no par value | ||||||||||||||
Authorized at October 2, 2022 and December 31, 2021, respectively | ||||||||||||||
Capital in excess of stated value | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Retained earnings | ||||||||||||||
Total Sonoco Shareholders’ Equity | ||||||||||||||
Noncontrolling Interests | ||||||||||||||
Total Equity | ||||||||||||||
Total Liabilities and Equity | $ | $ |
* |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | |||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||
Gross profit | ||||||||||||||||||||||||||
Selling, general and administrative expenses | ||||||||||||||||||||||||||
Restructuring/Asset impairment charges | ||||||||||||||||||||||||||
Gain/(loss) on divestiture of business | ( | |||||||||||||||||||||||||
Operating profit | ||||||||||||||||||||||||||
Non-operating pension costs | ||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||
Loss from the early extinguishment of debt | ||||||||||||||||||||||||||
Income/(Loss) before income taxes | ( | |||||||||||||||||||||||||
Provision for/(Benefit from) income taxes | ( | |||||||||||||||||||||||||
Income/(Loss) before equity in earnings of affiliates | ( | |||||||||||||||||||||||||
Equity in earnings of affiliates, net of tax | ||||||||||||||||||||||||||
Net income/(loss) | ( | |||||||||||||||||||||||||
Net (income)/loss attributable to noncontrolling interests | ( | ( | ( | ( | ||||||||||||||||||||||
Net income/(loss) attributable to Sonoco | $ | $ | $ | $ | ( | |||||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||
Diluted | ||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||
Net income/(loss) attributable to Sonoco: | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ( | |||||||||||||||||||||
Diluted | $ | $ | $ | $ | ( |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | |||||||||||||||||||||||
Net income/(loss) | $ | $ | $ | $ | ( | |||||||||||||||||||||
Other comprehensive (loss)/income: | ||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ( | ||||||||||||||||||||||
Changes in defined benefit plans, net of tax | ( | |||||||||||||||||||||||||
Changes in derivative financial instruments, net of tax | ( | ( | ||||||||||||||||||||||||
Other comprehensive (loss)/income | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | ( | ( | ( | ( | ||||||||||||||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | ||||||||||||||||||||||||||
Comprehensive income attributable to Sonoco | $ | $ | $ | $ |
Total Equity | Common Shares | Capital in Excess of Stated Value | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | |||||||||||||||||||||||||||||||||
Outstanding | Amount | |||||||||||||||||||||||||||||||||||||
December 31, 2020 | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Net income/(loss) | ( | |||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | ||||||||||||||||||||||||||||||||||||||
Translation loss | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Defined benefit plan adjustment, net of tax | ||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of tax | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
Dividends | ( | ( | ||||||||||||||||||||||||||||||||||||
Issuance of stock awards | ||||||||||||||||||||||||||||||||||||||
Shares repurchased | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||||||||
April 4, 2021 | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Net loss | ( | ( | $ | ( | ||||||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||
Translation gain | ||||||||||||||||||||||||||||||||||||||
Defined benefit plan adjustment, net of tax | ||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of tax | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Dividends | ( | ( | ||||||||||||||||||||||||||||||||||||
Issuance of stock awards | ||||||||||||||||||||||||||||||||||||||
Shares repurchased | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||||||||
July 4, 2021 | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | ||||||||||||||||||||||||||||||||||||||
Translation loss | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Defined benefit plan adjustment, net of tax | ||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of tax | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
Dividends | ( | ( | ||||||||||||||||||||||||||||||||||||
Issuance of stock awards | ||||||||||||||||||||||||||||||||||||||
Shares repurchased | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||||||||
October 3, 2021 | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Total Equity | Common Shares | Capital in Excess of Stated Value | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | |||||||||||||||||||||||||||||||||
Outstanding | Amount | |||||||||||||||||||||||||||||||||||||
December 31, 2021 | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | ||||||||||||||||||||||||||||||||||||||
Translation income/(loss) | ( | |||||||||||||||||||||||||||||||||||||
Defined benefit plan adjustment, net of tax | ||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of tax | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Dividends | ( | ( | ||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interest | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Issuance of stock awards | ||||||||||||||||||||||||||||||||||||||
Shares repurchased | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||||||||
April 3, 2022 | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ||||||||||||||||||||||||||||||||||||||
Translation loss | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Defined benefit plan adjustment, net of tax | ( | ( | ||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of tax | ( | ( | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
Dividends | ( | ( | ||||||||||||||||||||||||||||||||||||
Issuance of stock awards | ||||||||||||||||||||||||||||||||||||||
Shares repurchased | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||||||||
July 3, 2022 | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | ||||||||||||||||||||||||||||||||||||||
Translation loss | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Defined benefit plan adjustment, net of tax | ||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of tax | ( | ( | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Dividends | ( | ( | ||||||||||||||||||||||||||||||||||||
Issuance of stock awards | ||||||||||||||||||||||||||||||||||||||
Shares repurchased | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||||||||
October 2, 2022 | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||
October 2, 2022 | October 3, 2021 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||
Net income | $ | $ | ( | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Asset impairments | ||||||||||||||
Depreciation, depletion and amortization | ||||||||||||||
Loss on early extinguishment of debt | ||||||||||||||
Share-based compensation expense | ||||||||||||||
Equity in earnings of affiliates | ( | ( | ||||||||||||
Cash dividends from affiliated companies | ||||||||||||||
Net gain on disposition of assets | ( | ( | ||||||||||||
Net loss on divestiture of businesses | ||||||||||||||
Pension and postretirement plan expense | ||||||||||||||
Pension and postretirement plan contributions | ( | ( | ||||||||||||
Decrease in net deferred tax liabilities | ( | ( | ||||||||||||
Change in assets and liabilities, net of effects from acquisitions and foreign currency adjustments: | ||||||||||||||
Trade accounts receivable | ( | ( | ||||||||||||
Inventories | ( | ( | ||||||||||||
Payable to suppliers | ||||||||||||||
Prepaid expenses | ( | ( | ||||||||||||
Income taxes payable and other income tax items | ( | |||||||||||||
Accrued expenses and other assets and liabilities | ( | |||||||||||||
Net cash provided by operating activities | ||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||
Purchases of property, plant and equipment | ( | ( | ||||||||||||
Cost of acquisitions, net of cash acquired | ( | ( | ||||||||||||
Proceeds from the sale of businesses, net | ||||||||||||||
Proceeds from the sale of assets | ||||||||||||||
Other net investing activity | ( | |||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||
Proceeds from issuance of debt | ||||||||||||||
Principal repayment of debt | ( | ( | ||||||||||||
Net change in commercial paper | ( | |||||||||||||
Net decrease in outstanding checks | ( | ( | ||||||||||||
Proceeds from foreign exchange forward contracts and interest rate swaps | ||||||||||||||
Cash dividends | ( | ( | ||||||||||||
Purchase of noncontrolling interest | ( | |||||||||||||
Excess cash costs of early extinguishment of debt | ( | |||||||||||||
Payments for share repurchases | ( | ( | ||||||||||||
Net cash provided/(used) by financing activities | ( | |||||||||||||
Effects of Exchange Rate Changes on Cash | ( | ( | ||||||||||||
Net Increase/(Decrease) in Cash and Cash Equivalents | ( | |||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents at end of period | $ | $ |
Initial Allocation | Measurement Period Adjustments | Revised Allocation | |||||||||||||||
Trade accounts receivable | $ | $ | — | $ | |||||||||||||
Other receivables | — | ||||||||||||||||
Inventories | |||||||||||||||||
Prepaid expenses | — | ||||||||||||||||
Property, plant and equipment | ( | ||||||||||||||||
Right of use asset - operating leases | — | ||||||||||||||||
Other intangible assets | — | ||||||||||||||||
Goodwill | ( | ||||||||||||||||
Other net tangible assets | ( | ||||||||||||||||
Payable to suppliers | ( | — | ( | ||||||||||||||
Accrued expenses and other | ( | ( | |||||||||||||||
Notes payable and current portion of long-term debt | ( | — | ( | ||||||||||||||
Noncurrent operating lease liabilities | ( | — | ( | ||||||||||||||
Long-term debt | ( | — | ( | ||||||||||||||
Deferred income taxes | ( | ( | |||||||||||||||
Total purchase price, net of cash acquired | $ | $ | ( | $ |
Supplemental Information (unaudited) | Three Months Ended | January 26 to | ||||||
Metal Packaging | October 2, 2022 | October 2, 2022 | ||||||
Net sales | $ | $ | ||||||
Net income | $ | $ |
Pro Forma Supplemental Information (unaudited) | Three Months Ended | Nine Months Ended | |||||||||||||||
Consolidated | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | |||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||
Net income/(loss) attributable to Sonoco | $ | $ | $ | $ | ( |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | |||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||
Net income/(loss) attributable to Sonoco | $ | $ | $ | $ | ( | |||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||
Dilutive effect of stock-based compensation | ||||||||||||||||||||||||||
Diluted | ||||||||||||||||||||||||||
Net income/(loss) attributable to Sonoco per common share: | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ( | |||||||||||||||||||||
Diluted | $ | $ | $ | $ | ( | |||||||||||||||||||||
Cash dividends | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | |||||||||||||||||||||||
Anti-dilutive stock appreciation rights |
Nine Months Ended | ||||||||||||||
October 3, 2021 | ||||||||||||||
Dilutive securities excluded due to reported loss |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | |||||||||||||||||||||||
Restructuring and restructuring-related asset impairment charges | $ | $ | $ | $ | ||||||||||||||||||||||
Other asset impairments | ||||||||||||||||||||||||||
Restructuring/Asset Impairment Charges | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | |||||||||||||||||||||||
Severance and Termination Benefits | $ | $ | $ | $ | ||||||||||||||||||||||
Asset Impairments/(Gains from Disposal of Assets) | ( | ( | ||||||||||||||||||||||||
Other Costs | ||||||||||||||||||||||||||
Restructuring and restructuring-related asset impairment charges | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | |||||||||||||||||||||||
Consumer Packaging | $ | $ | $ | $ | ||||||||||||||||||||||
Industrial Paper Packaging | ( | ( | ||||||||||||||||||||||||
All Other | ( | |||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||
Restructuring and restructuring-related asset impairment charges | $ | $ | $ | $ |
Severance and Termination Benefits | Asset Impairments/ Disposal of Assets | Other Costs | Total | |||||||||||||||||||||||
Accrual Activity | ||||||||||||||||||||||||||
Liability at December 31, 2021 | $ | $ | $ | $ | ||||||||||||||||||||||
2022 charges | ||||||||||||||||||||||||||
Cash (payments)/receipts | ( | ( | ( | |||||||||||||||||||||||
Asset writedowns/disposals | ( | ( | ||||||||||||||||||||||||
Foreign currency translation | ( | ( | ( | |||||||||||||||||||||||
Liability at October 2, 2022 | $ | $ | $ | $ |
Foreign Currency Items | Defined Benefit Pension Items | Cash Flow Hedges | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||
Balance at December 31, 2021 | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
Other comprehensive (loss)/income before reclassifications | ( | ( | ( | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income | ( | |||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to fixed assets | ( | ( | ||||||||||||||||||||||||
Other comprehensive (loss)/income | ( | ( | ( | ( | ||||||||||||||||||||||
Balance at October 2, 2022 | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
Balance at December 31, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Other comprehensive (loss)/income before reclassifications | ( | ( | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net loss | ( | |||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to fixed assets | ( | ( | ||||||||||||||||||||||||
Other comprehensive (loss)/income | ( | |||||||||||||||||||||||||
Balance at October 3, 2021 | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Loss | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Details about Accumulated Other Comprehensive Loss Components | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | Affected Line Item in the Condensed Consolidated Statements of Income | ||||||||||||||||||
Foreign currency items | |||||||||||||||||||||||
Loss on Russia restructuring(a) | $ | $ | ( | Restructuring/Asset impairment charges | |||||||||||||||||||
Gains/(losses) on cash flow hedges | |||||||||||||||||||||||
Foreign exchange contracts | Net sales | ||||||||||||||||||||||
Foreign exchange contracts | ( | ( | ( | ( | Cost of sales | ||||||||||||||||||
Commodity contracts | Cost of sales | ||||||||||||||||||||||
Income/(Loss) before income taxes | |||||||||||||||||||||||
Income tax impact | ( | ( | ( | ( | Provision for/(Benefit from) income taxes | ||||||||||||||||||
Net income/(loss) | |||||||||||||||||||||||
Defined benefit pension items | |||||||||||||||||||||||
Effect of settlement loss(b) | ( | ( | ( | Non-operating pension costs | |||||||||||||||||||
Amortization of defined benefit pension items(b) | ( | ( | ( | ( | Non-operating pension costs | ||||||||||||||||||
( | ( | ( | ( | Income/(Loss) before income taxes | |||||||||||||||||||
Income tax impact | Provision for/(Benefit from) income taxes | ||||||||||||||||||||||
( | ( | ( | ( | Net income/(loss) | |||||||||||||||||||
Total reclassifications for the period | $ | $ | $ | ( | $ | ( | Net income/(loss) |
Three months ended October 2, 2022 | Three months ended October 3, 2021 | ||||||||||||||||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | ||||||||||||||||||||||||
Foreign currency items: | |||||||||||||||||||||||||||||
Other comprehensive loss before reclassifications | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income(a) | |||||||||||||||||||||||||||||
Net other comprehensive loss from foreign currency items | ( | ( | — | ( | ( | ||||||||||||||||||||||||
Defined benefit pension items: | |||||||||||||||||||||||||||||
Other comprehensive (loss)/income before reclassifications | ( | ( | ( | ||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income(b) | ( | ( | |||||||||||||||||||||||||||
Net other comprehensive income/(loss) from defined benefit pension items | ( | ( | |||||||||||||||||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | ( | ( | |||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income(c) | ( | ( | ( | ( | |||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to fixed assets | ( | ( | ( | ||||||||||||||||||||||||||
Net other comprehensive (loss)/ income from cash flow hedges | ( | ( | ( | ||||||||||||||||||||||||||
Other comprehensive (loss)/income | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
Nine-month period ended October 2, 2022 | Nine-month period ended October 3, 2021 | ||||||||||||||||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | ||||||||||||||||||||||||
Foreign currency items: | |||||||||||||||||||||||||||||
Other comprehensive loss before reclassifications | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income/(loss)(a) | |||||||||||||||||||||||||||||
Net other comprehensive loss from foreign currency items | ( | ( | ( | ( | |||||||||||||||||||||||||
Defined benefit pension items: | |||||||||||||||||||||||||||||
Other comprehensive (loss)/income before reclassifications | ( | ( | ( | ||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income/(loss)(b) | ( | ( | |||||||||||||||||||||||||||
Net other comprehensive (loss)/income from defined benefit pension items | ( | ( | ( | ||||||||||||||||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | ( | ( | |||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income/(loss)(c) | ( | ( | ( | ( | |||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to fixed assets | ( | ( | ( | ( | |||||||||||||||||||||||||
Net other comprehensive (loss)/income from cash flow hedges | ( | ( | ( | ||||||||||||||||||||||||||
Other comprehensive (loss)/ income | $ | ( | $ | $ | ( | $ | $ | ( | $ |
Consumer Packaging | Industrial Paper Packaging | All Other | Total | |||||||||||||||||||||||
Goodwill at December 31, 2021 | $ | $ | $ | $ | ||||||||||||||||||||||
2022 Acquisitions | ||||||||||||||||||||||||||
Foreign currency translation | ( | ( | ( | ( | ||||||||||||||||||||||
Measurement period adjustments | ( | ( | ||||||||||||||||||||||||
Goodwill at October 2, 2022 | $ | $ | $ | $ |
October 2, 2022 | December 31, 2021 | |||||||||||||
Other Intangible Assets, gross: | ||||||||||||||
Patents | $ | $ | ||||||||||||
Customer lists | ||||||||||||||
Trade names | ||||||||||||||
Proprietary technology | ||||||||||||||
Other | ||||||||||||||
Total Other Intangible Assets, gross | $ | $ | ||||||||||||
Accumulated Amortization: | ||||||||||||||
Patents | $ | ( | $ | ( | ||||||||||
Customer lists | ( | ( | ||||||||||||
Trade names | ( | ( | ||||||||||||
Proprietary technology | ( | ( | ||||||||||||
Other | ( | ( | ||||||||||||
Total Accumulated Amortization | $ | ( | $ | ( | ||||||||||
Other Intangible Assets, net | $ | $ |
October 2, 2022 | December 31, 2021 | ||||||||||
Commercial paper | $ | $ | |||||||||
Syndicated term loan due February 2025 | |||||||||||
Other foreign denominated debt | |||||||||||
Finance lease obligations | |||||||||||
Other debt | |||||||||||
Total debt | $ | $ | |||||||||
Less current portion and short-term notes | |||||||||||
Long-term debt | $ | $ | |||||||||
Principal Amount | Issuance Costs and Discounts | Net Proceeds | Interest Rate | Maturity | |||||||||||||||||||||||||
2025 Notes | $ | $ | ( | $ | February 1, 2025 | ||||||||||||||||||||||||
2027 Notes | ( | February 1, 2027 | |||||||||||||||||||||||||||
2032 Notes | ( | February 1, 2032 | |||||||||||||||||||||||||||
Total | $ | $ | ( | $ |
Principal Amount Tendered | Premium and Other Amounts Paid | Total Cash Paid | ||||||||||||
$ | $ | $ |
October 2, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||
Long-term debt, net of current portion | $ | $ | $ | $ |
Currency | Action | Quantity | ||||||
Colombian peso | purchase | |||||||
Mexican peso | purchase | |||||||
Polish zloty | purchase | |||||||
Czech koruna | purchase | |||||||
Euro | purchase | |||||||
Turkish lira | purchase | |||||||
Canadian dollar | purchase | |||||||
British pound | purchase |
Currency | Action | Quantity | ||||||
Colombian peso | purchase | |||||||
Indonesian rupiah | purchase | |||||||
Mexican peso | purchase | |||||||
Turkish lira | purchase | |||||||
Canadian dollar | purchase | |||||||
Thai baht | sell | ( | ||||||
Description | Balance Sheet Location | October 2, 2022 | December 31, 2021 | |||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Commodity Contracts | Prepaid expenses | $ | $ | |||||||||||||||||
Commodity Contracts | Other assets | $ | $ | |||||||||||||||||
Commodity Contracts | Accrued expenses and other | $ | ( | $ | ( | |||||||||||||||
Commodity Contracts | Other liabilities | $ | ( | $ | ||||||||||||||||
Foreign Exchange Contracts | Prepaid expenses | $ | $ | |||||||||||||||||
Foreign Exchange Contracts | Accrued expenses and other | $ | ( | $ | ( | |||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Commodity Contracts | Prepaid expenses | $ | $ | |||||||||||||||||
Commodity Contracts | Other assets | $ | $ | |||||||||||||||||
Commodity Contracts | Accrued expenses and other | $ | ( | $ | ( | |||||||||||||||
Commodity Contracts | Other liabilities | $ | ( | $ | ||||||||||||||||
Foreign Exchange Contracts | Prepaid expenses | $ | $ | |||||||||||||||||
Foreign Exchange Contracts | Accrued expenses and other | $ | ( | $ | ( | |||||||||||||||
Interest Rate Lock Contract | Accrued expenses and other | $ | $ | ( |
Description | Amount of Gain or (Loss) Recognized in OCI on Derivatives | Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income | Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | |||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||||
Three-month period ended October 2, 2022 | ||||||||||||||||||||
Foreign Exchange Contracts | $ | ( | Net sales | $ | ||||||||||||||||
Cost of sales | $ | ( | ||||||||||||||||||
Commodity Contracts | $ | Cost of sales | $ | |||||||||||||||||
Three-month period ended October 3, 2021 | ||||||||||||||||||||
Foreign Exchange Contracts | $ | ( | Net sales | $ | ||||||||||||||||
Cost of sales | $ | ( | ||||||||||||||||||
Commodity Contracts | $ | Cost of sales | $ |
Description | Gain or (Loss) Recognized | Location of Gain or (Loss) Recognized in Income Statement | ||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||
Three-month period ended October 2, 2022 | ||||||||||||||
Commodity Contracts | $ | Cost of sales | ||||||||||||
Foreign Exchange Contracts | $ | ( | Selling, general and administrative | |||||||||||
Three-month period ended October 3, 2021 | ||||||||||||||
Commodity Contracts | $ | Cost of sales | ||||||||||||
Foreign Exchange Contracts | $ | ( | Selling, general and administrative |
Three-month period ended October 2, 2022 | Three-month period ended October 3, 2021 | |||||||||||||||||||
Description | Revenue | Cost of sales | Revenue | Cost of sales | ||||||||||||||||
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income | $ | $ | $ | $ | ||||||||||||||||
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 | $ | $ | ( | $ | $ | ( | ||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Amount of gain reclassified from accumulated other comprehensive loss into net income | $ | $ | $ | $ |
Description | Amount of Gain or (Loss) Recognized in OCI on Derivatives | Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income | Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | |||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||||
Nine-month period ended October 2, 2022 | ||||||||||||||||||||
Foreign Exchange Contracts | $ | ( | Net sales | $ | ||||||||||||||||
Cost of sales | $ | ( | ||||||||||||||||||
Commodity Contracts | $ | Cost of sales | $ | |||||||||||||||||
Nine-month period ended October 3, 2021 | ||||||||||||||||||||
Foreign Exchange Contracts | $ | Net sales | $ | |||||||||||||||||
Cost of sales | $ | ( | ||||||||||||||||||
Commodity Contracts | $ | Cost of sales | $ |
Description | Gain or (Loss) Recognized | Location of Gain or (Loss) Recognized in Income Statement | ||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||
Nine-month period ended October 2, 2022 | ||||||||||||||
Commodity Contracts | $ | Cost of sales | ||||||||||||
Foreign Exchange Contracts | $ | ( | Selling, general and administrative | |||||||||||
Nine-month period ended October 3, 2021 | ||||||||||||||
Commodity Contracts | $ | Cost of sales | ||||||||||||
Foreign Exchange Contracts | $ | ( | Selling, general and administrative |
Nine-month period ended October 2, 2022 | Nine-month period ended October 3, 2021 | |||||||||||||||||||
Description | Revenue | Cost of sales | Revenue | Cost of sales | ||||||||||||||||
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income | $ | $ | $ | $ | ||||||||||||||||
Gain or (loss) on cash flow hedging relationships: | ||||||||||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||
Amount of gain/(loss) reclassified from accumulated other comprehensive income into net income | $ | $ | ( | $ | $ | ( | ||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Amount of gain reclassified from accumulated other comprehensive income into net income | $ | $ | $ | $ | ||||||||||||||||
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 |
Description | October 2, 2022 | Assets measured at NAV | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Hedge derivatives, net: | |||||||||||||||||||||||||||||
Commodity contracts | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Foreign exchange contracts | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||
Non-hedge derivatives, net: | |||||||||||||||||||||||||||||
Commodity contracts | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Foreign exchange contracts | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||
Description | December 31, 2021 | Assets measured at NAV | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Hedge derivatives, net: | |||||||||||||||||||||||||||||
Commodity contracts | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Foreign exchange contracts | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||
Non-hedge derivatives, net: | |||||||||||||||||||||||||||||
Commodity contracts | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Foreign exchange contracts | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||
Interest rate lock contract | $ | ( | $ | $ | $ | ( | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | |||||||||||||||||||||||
Retirement Plans | ||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||||||||||||||
Amortization of prior service cost | ||||||||||||||||||||||||||
Amortization of net actuarial loss | ||||||||||||||||||||||||||
Effect of settlement loss | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ | ||||||||||||||||||||||
Retiree Health and Life Insurance Plans | ||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||||||||||||||
Amortization of net actuarial gain | ( | ( | ( | ( | ||||||||||||||||||||||
Net periodic benefit income | $ | ( | $ | ( | $ | ( | $ | ( |
Classification | Balance Sheet Location | October 2, 2022 | December 31, 2021 | ||||||||||||||
Lease Assets | |||||||||||||||||
Operating lease assets | Right of Use Asset - Operating Leases | $ | $ | ||||||||||||||
Finance lease assets | |||||||||||||||||
Total lease assets | $ | $ | |||||||||||||||
Lease Liabilities | |||||||||||||||||
Current operating lease liabilities | $ | $ | |||||||||||||||
Current finance lease liabilities | |||||||||||||||||
Total current lease liabilities | $ | $ | |||||||||||||||
Noncurrent operating lease liabilities | Noncurrent Operating Lease Liabilities | $ | $ | ||||||||||||||
Noncurrent finance lease liabilities | |||||||||||||||||
Total noncurrent lease liabilities | $ | $ | |||||||||||||||
Total lease liabilities | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||
Lease Cost | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | |||||||||||||
Operating lease cost | (a) | $ | $ | $ | $ | ||||||||||||
Finance lease cost: | |||||||||||||||||
Amortization of lease asset | (a) | ||||||||||||||||
Interest on lease liabilities | (b) | ||||||||||||||||
Variable lease cost | (a) (c) | ||||||||||||||||
Impairment charges | (d) | ||||||||||||||||
Total lease cost | $ | $ | $ | $ | |||||||||||||
Nine Months Ended | |||||||||||
October 2, 2022 | October 3, 2021 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows used by operating leases | $ | $ | |||||||||
Operating cash flows used by finance leases | $ | $ | |||||||||
Financing cash flows used by finance leases | $ | $ | |||||||||
Noncash investing and financing activities: | |||||||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | $ | |||||||||
Leased assets obtained in exchange for new finance lease liabilities | $ | $ | |||||||||
Modification to leased assets for increase in operating lease liabilities | $ | $ | |||||||||
Modification to leased assets for (decrease)/increase in finance lease liabilities | $ | ( | $ | ||||||||
Termination reclasses to decrease operating lease assets | $ | ( | $ | ( | |||||||
Termination reclasses to decrease operating lease liabilities | $ | ( | $ | ( | |||||||
Termination reclasses to decrease finance lease assets | $ | ( | $ | ( | |||||||
Termination reclasses to decrease finance lease liabilities | $ | ( | $ | ( |
October 2, 2022 | December 31, 2021 | |||||||||||||
Contract Assets | $ | $ | ||||||||||||
Contract Liabilities | $ | ( | $ | ( |
October 2, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
Contract Asset | Contract Liability | Contract Asset | Contract Liability | ||||||||||||||||||||||||||
Beginning Balance | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||
Acquired as part of a business combination | ( | — | — | ||||||||||||||||||||||||||
Revenue deferred or rebates accrued | — | ( | — | ( | |||||||||||||||||||||||||
Recognized as revenue | |||||||||||||||||||||||||||||
Rebates paid to customers | — | — | |||||||||||||||||||||||||||
Increases due to rights to consideration for customer specific goods produced, but not billed during the period | — | — | |||||||||||||||||||||||||||
Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combinations | ( | — | ( | — | |||||||||||||||||||||||||
Ending Balance | $ | $ | ( | $ | $ | ( |
Three-month period ended October 2, 2022 | Consumer Packaging | Industrial Paper Packaging | All Other | Total | |||||||||||||||||||
Primary Geographical Markets: | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Europe | |||||||||||||||||||||||
Canada | |||||||||||||||||||||||
Asia | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Three-month period ended October 3, 2021 | Consumer Packaging | Industrial Paper Packaging | All Other | Total | |||||||||||||||||||
Primary Geographical Markets: | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Europe | |||||||||||||||||||||||
Canada | |||||||||||||||||||||||
Asia | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Nine-month period ended October 2, 2022 | Consumer Packaging | Industrial Paper Packaging | All Other | Total | |||||||||||||||||||
Primary Geographical Markets: | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Europe | |||||||||||||||||||||||
Canada | |||||||||||||||||||||||
Asia | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Nine-month period ended October 3, 2021 | Consumer Packaging | Industrial Paper Packaging | All Other | Total | |||||||||||||||||||
Primary Geographical Markets: | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Europe | |||||||||||||||||||||||
Canada | |||||||||||||||||||||||
Asia | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | |||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||
Consumer Packaging | $ | $ | $ | $ | ||||||||||||||||||||||
Industrial Paper Packaging | ||||||||||||||||||||||||||
All Other | ||||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Intersegment sales: | ||||||||||||||||||||||||||
Consumer Packaging | $ | $ | $ | $ | ||||||||||||||||||||||
Industrial Paper Packaging | ||||||||||||||||||||||||||
All Other | ||||||||||||||||||||||||||
Intersegment sales | $ | $ | $ | $ | ||||||||||||||||||||||
Operating profit: | ||||||||||||||||||||||||||
Segment operating profit: | ||||||||||||||||||||||||||
Consumer Packaging | $ | $ | $ | $ | ||||||||||||||||||||||
Industrial Paper Packaging | ||||||||||||||||||||||||||
All Other | ||||||||||||||||||||||||||
Segment operating profit | ||||||||||||||||||||||||||
Restructuring/Asset impairment charges | ( | ( | ( | ( | ||||||||||||||||||||||
Amortization of acquisition intangibles | ( | ( | ( | ( | ||||||||||||||||||||||
Other non-base (charges)/income, net | ( | ( | ||||||||||||||||||||||||
Operating profit |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
For the three-month period ended October 2, 2022 | ||||||||||||||||||||
Dollars in thousands, except per share data | GAAP | Restructuring/Asset Impairments | Amortization of Acquisition Intangibles | Acquisition/Divestiture Related | Other Adjustments(1) | Base | ||||||||||||||
Operating profit | $ | 181,942 | $ | 20,652 | $ | 20,690 | $ | 2,022 | $ | (215) | $ | 225,091 | ||||||||
Non-operating pension costs | 1,249 | — | — | — | (1,249) | — | ||||||||||||||
Interest expense, net | 25,566 | — | — | — | — | 25,566 | ||||||||||||||
Income before income taxes | 155,127 | 20,652 | 20,690 | 2,022 | 1,034 | 199,525 | ||||||||||||||
Provision for income taxes | 36,824 | 4,862 | 4,938 | 765 | (1,297) | 46,092 | ||||||||||||||
Income before equity in earnings of affiliates | 118,303 | 15,790 | 15,752 | 1,257 | 2,331 | 153,433 | ||||||||||||||
Equity in earnings of affiliates, net of tax | 4,199 | — | — | — | — | 4,199 | ||||||||||||||
Net income | 122,502 | 15,790 | 15,752 | 1,257 | 2,331 | 157,632 | ||||||||||||||
Net (income)/loss attributable to noncontrolling interests | (273) | 186 | — | — | — | (87) | ||||||||||||||
Net income attributable to Sonoco | 122,229 | 15,976 | 15,752 | 1,257 | 2,331 | 157,545 | ||||||||||||||
Per diluted common share* | $ | 1.24 | $ | 0.16 | $ | 0.16 | $ | 0.01 | $ | 0.02 | $ | 1.60 | ||||||||
*Due to rounding individual items may not sum across |
For the three-month period ended October 3, 2021 | ||||||||||||||||||||
Dollars in thousands, except per share data | GAAP | Restructuring/Asset Impairments | Amortization of Acquisition Intangibles(1)(2) | Acquisition/Divestiture Related | Other Adjustments(1) | Base | ||||||||||||||
Operating profit | $ | 126,512 | $ | 3,488 | $ | 12,257 | $ | 1,015 | $ | (8,585) | $ | 134,687 | ||||||||
Non-operating pension costs | 525 | — | — | — | (525) | — | ||||||||||||||
Interest expense, net | 14,219 | — | — | — | — | 14,219 | ||||||||||||||
Income before income taxes | $ | 111,768 | $ | 3,488 | $ | 12,257 | $ | 1,015 | $ | (8,060) | $ | 120,468 | ||||||||
Provision for income taxes | 2,564 | 312 | 3,036 | 190 | 16,493 | 22,595 | ||||||||||||||
Income before equity in earnings of affiliates | $ | 109,204 | $ | 3,176 | $ | 9,221 | $ | 825 | $ | (24,553) | $ | 97,873 | ||||||||
Equity in earnings of affiliates, net of tax | 2,351 | — | — | — | — | 2,351 | ||||||||||||||
Net income | $ | 111,555 | $ | 3,176 | $ | 9,221 | $ | 825 | $ | (24,553) | $ | 100,224 | ||||||||
Net loss attributable to noncontrolling interests | (415) | — | — | — | — | (415) | ||||||||||||||
Net income attributable to Sonoco | $ | 111,140 | $ | 3,176 | $ | 9,221 | $ | 825 | $ | (24,553) | $ | 99,809 | ||||||||
Diluted weighted average common shares outstanding: | 99,425 | — | 99,425 | |||||||||||||||||
Per diluted common share* | $ | 1.12 | $ | 0.03 | $ | 0.09 | $ | 0.01 | $ | (0.25) | $ | 1.00 | ||||||||
*Due to rounding individual items may not sum across |
Three Months Ended | ||||||||
($ in millions) | October 2, 2022 | October 3, 2021 | ||||||
Impairment and restructuring related charges | $ | 16.0 | $ | 3.2 | ||||
Amortization of acquired intangibles | 15.8 | 9.2 | ||||||
Acquisition and divestiture related costs | 1.3 | 0.8 | ||||||
Net loss/(gain) on derivatives | 1.1 | (2.2) | ||||||
Turkey hyperinflationary accounting impact | 0.8 | — | ||||||
Changes in LIFO inventory reserve | (0.3) | — | ||||||
Insurance settlement gains | (2.0) | (1.6) | ||||||
Gain on divestiture of businesses | — | (2.2) | ||||||
Other non-operating pension costs | 0.9 | 0.3 | ||||||
Net recognized benefit on 2017 amended U.S. income tax return | — | (30.0) | ||||||
Other non-base income tax charges | 1.7 | 12.1 | ||||||
All other non-base items | — | (0.9) | ||||||
Total non-base charges/(income), after tax | $ | 35.3 | $ | (11.3) |
($ in millions) | |||||
Volume/mix | $ | (52) | |||
Selling prices | 250 | ||||
Acquisitions and divestitures, net | 334 | ||||
Foreign currency translation and other, net | (57) | ||||
Total sales increase | $ | 475 | |||
Three Months Ended | ||||||||||||||||||||
October 2, 2022 | October 3, 2021 | % Change | ||||||||||||||||||
Net sales: | ||||||||||||||||||||
Consumer Packaging | $ | 1,030,549 | $ | 598,969 | 72.1 | % | ||||||||||||||
Industrial Paper Packaging | 661,452 | 635,230 | 4.1 | % | ||||||||||||||||
All Other | 198,215 | 180,994 | 9.5 | % | ||||||||||||||||
Net sales | $ | 1,890,216 | $ | 1,415,193 | 33.6 | % |
Three Months Ended | ||||||||||||||||||||
October 2, 2022 | October 3, 2021 | % Change | ||||||||||||||||||
Operating profit: | ||||||||||||||||||||
Segment operating profit: | ||||||||||||||||||||
Consumer Packaging | $ | 127,859 | $ | 66,341 | 92.7 | % | ||||||||||||||
Industrial Paper Packaging | 81,859 | 55,451 | 47.6 | % | ||||||||||||||||
All Other | 15,373 | 12,895 | 19.2 | % | ||||||||||||||||
Total segment operating profit | 225,091 | 134,687 | 67.1 | % | ||||||||||||||||
Restructuring/Asset impairment charges | (20,652) | (3,488) | ||||||||||||||||||
Amortization of acquisition intangibles | (20,690) | (12,257) | ||||||||||||||||||
Other non-base charges, net | (1,807) | 7,570 | ||||||||||||||||||
Operating profit | $ | 181,942 | $ | 126,512 | 43.8 | % |
Three Months Ended | ||||||||||||||
October 2, 2022 | October 3, 2021 | |||||||||||||
Restructuring/Asset impairment charges/(income): | ||||||||||||||
Consumer Packaging | $ | 4,350 | $ | 2,734 | ||||||||||
Industrial Paper Packaging | 7,674 | (1,888) | ||||||||||||
All Other | 18 | 555 | ||||||||||||
Corporate | 8,610 | 2,087 | ||||||||||||
Restructuring/Asset impairment charges | $ | 20,652 | $ | 3,488 |
For the nine-month period ended October 2, 2022 | ||||||||||||||||||||
Dollars in thousands, except per share data | GAAP | Restructuring/Asset Impairments | Amortization of Acquisition Intangibles | Acquisition/Divestiture Related | Other Adjustments(1) | Base | ||||||||||||||
Operating profit | $ | 548,480 | $ | 43,357 | $ | 60,361 | $ | 62,655 | $ | 21,183 | $ | 736,036 | ||||||||
Non-operating pension costs | 4,251 | — | — | — | (4,251) | — | ||||||||||||||
Interest expense, net | 67,792 | — | — | — | 136 | 67,928 | ||||||||||||||
Income before income taxes | $ | 476,437 | $ | 43,357 | $ | 60,361 | $ | 62,655 | $ | 25,298 | $ | 668,108 | ||||||||
Provision for income taxes | 116,712 | 7,339 | 14,666 | 15,529 | 9,607 | 163,853 | ||||||||||||||
Income before equity in earnings of affiliates | $ | 359,725 | $ | 36,018 | $ | 45,695 | $ | 47,126 | $ | 15,691 | $ | 504,255 | ||||||||
Equity in earnings of affiliates, net of tax | 10,151 | — | — | — | — | 10,151 | ||||||||||||||
Net income | $ | 369,876 | $ | 36,018 | $ | 45,695 | $ | 47,126 | $ | 15,691 | $ | 514,406 | ||||||||
Net (income) attributable to noncontrolling interests | (642) | 286 | — | — | — | (356) | ||||||||||||||
Net income attributable to Sonoco | $ | 369,234 | $ | 36,304 | $ | 45,695 | $ | 47,126 | $ | 15,691 | $ | 514,050 | ||||||||
Per diluted common share* | $ | 3.74 | $ | 0.37 | $ | 0.46 | $ | 0.48 | $ | 0.16 | $ | 5.21 | ||||||||
*Due to rounding individual items may not sum across |
For the nine-month period ended October 3, 2021 | ||||||||||||||||||||
Dollars in thousands, except per share data | GAAP | Restructuring/Asset Impairments | Amortization of Acquisition Intangibles(1)(2) | Acquisition/Divestiture Related | Other Adjustments(1) | Base | ||||||||||||||
Operating profit | $ | 382,112 | $ | 8,889 | $ | 37,117 | $ | 12,503 | $ | (12,797) | $ | 427,824 | ||||||||
Non-operating pension costs | 562,818 | — | — | — | (562,818) | — | ||||||||||||||
Interest expense, net | 46,744 | — | — | — | 2,165 | 48,909 | ||||||||||||||
Loss from the early extinguishment of debt | 20,184 | — | — | — | (20,184) | — | ||||||||||||||
Income before income taxes | $ | (247,634) | $ | 8,889 | $ | 37,117 | $ | 12,503 | $ | 568,040 | $ | 378,915 | ||||||||
Provision for income taxes | (91,542) | 2,653 | 9,194 | 2,984 | 166,271 | 89,560 | ||||||||||||||
Income before equity in earnings of affiliates | $ | (156,092) | $ | 6,236 | $ | 27,923 | $ | 9,519 | $ | 401,769 | $ | 289,355 | ||||||||
Equity in earnings of affiliates, net of tax | 5,701 | — | — | — | — | 5,701 | ||||||||||||||
Net (loss)/income | $ | (150,391) | $ | 6,236 | $ | 27,923 | $ | 9,519 | $ | 401,769 | $ | 295,056 | ||||||||
Net (income) attributable to noncontrolling interests | (243) | — | — | — | — | (243) | ||||||||||||||
Net (loss)/income attributable to Sonoco | $ | (150,634) | $ | 6,236 | $ | 27,923 | $ | 9,519 | $ | 401,769 | $ | 294,813 | ||||||||
Diluted Weighted average common shares outstanding(3): | 100,039 | 468 | 100,507 | |||||||||||||||||
Per diluted common share* | $ | (1.51) | $ | 0.06 | $ | 0.28 | $ | 0.09 | $ | 4.00 | $ | 2.93 | ||||||||
*Due to rounding individual items may not sum across |
Nine Months Ended | ||||||||
($ in millions) | October 2, 2022 | October 3, 2021 | ||||||
Other net restructuring and asset impairment charges | $ | 27.1 | $ | 6.2 | ||||
Loss from exiting Russia | 9.2 | — | ||||||
Amortization of acquisition intangibles | 45.7 | 27.9 | ||||||
Amortization of fair value adjustments to Metal Packaging inventory | 24.7 | — | ||||||
Acquisition and divestiture-related costs | 22.4 | 9.5 | ||||||
Changes in LIFO inventory reserve | 18.7 | — | ||||||
Turkey hyperinflationary accounting impact | 0.8 | — | ||||||
Net gain on other derivatives | (1.7) | (2.2) | ||||||
Insurance settlement gains | (2.1) | (4.4) | ||||||
Loss from the early extinguishment of debt | — | 15.0 | ||||||
Loss on divestiture of businesses | — | 1.2 | ||||||
Refund of foreign VAT and applicable interest | — | (3.1) | ||||||
Euro derivative gain related to euro loan repayment | — | (3.3) | ||||||
Other non-operating pension costs | 3.1 | 11.8 | ||||||
Pension settlement charges (Inactive Plan) | — | 406.5 | ||||||
Other non-base income tax (gains)/charges | (3.0) | 11.9 | ||||||
Net recognized benefit on 2017 amended U.S. income tax return | — | (30.0) | ||||||
All other non-base gains | (0.1) | (1.6) | ||||||
Total non-base charges, after tax | $ | 144.8 | $ | 445.4 |
($ in millions) | |||||
Volume/mix | $ | (39) | |||
Selling prices | 823 | ||||
Acquisitions and divestitures, net | 765 | ||||
Foreign currency translation and other, net | (126) | ||||
Total sales increase | $ | 1,423 | |||
Nine-Month Period Ended | ||||||||||||||||||||
October 2, 2022 | October 3, 2021 | % Change | ||||||||||||||||||
Net sales: | ||||||||||||||||||||
Consumer Packaging | $ | 2,888,630 | $ | 1,779,525 | 62.3 | % | ||||||||||||||
Industrial Paper Packaging | 2,087,981 | 1,809,159 | 15.4 | % | ||||||||||||||||
All Other | 597,919 | 562,567 | 6.3 | % | ||||||||||||||||
Net sales | $ | 5,574,530 | $ | 4,151,251 | 34.3 | % |
Nine-Month Period Ended | ||||||||||||||||||||
October 2, 2022 | October 3, 2021 | % Change | ||||||||||||||||||
Operating profit: | ||||||||||||||||||||
Segment operating profit: | ||||||||||||||||||||
Consumer Packaging | $ | 440,889 | $ | 212,997 | 107.0 | % | ||||||||||||||
Industrial Paper Packaging | 248,721 | 167,568 | 48.4 | % | ||||||||||||||||
All Other | 46,426 | 47,259 | (1.8) | % | ||||||||||||||||
Total segment operating profit | 736,036 | 427,824 | 72.0 | % | ||||||||||||||||
Restructuring/Asset impairment charges | (43,357) | (8,889) | ||||||||||||||||||
Amortization of acquisition intangibles | (60,361) | (37,117) | ||||||||||||||||||
Other non-base charges, net | (83,838) | 294 | ||||||||||||||||||
Operating profit | $ | 548,480 | $ | 382,112 | 43.5 | % |
Nine-Month Period Ended | ||||||||||||||
October 2, 2022 | October 3, 2021 | |||||||||||||
Restructuring/Asset impairment charges/(income): | ||||||||||||||
Consumer Packaging | $ | 9,459 | $ | 6,150 | ||||||||||
Industrial Paper Packaging | 19,194 | (4,827) | ||||||||||||
All Other | (399) | 5,474 | ||||||||||||
Corporate | 15,103 | 2,092 | ||||||||||||
Restructuring/Asset impairment charges | $ | 43,357 | $ | 8,889 |
Principal Amount | Issuance Costs and Discounts | Net Proceeds | Interest Rate | Maturity | |||||||||||||||||||||||||
2025 Notes | $ | 400,000 | $ | (2,356) | $ | 397,644 | 1.800% | February 1, 2025 | |||||||||||||||||||||
2027 Notes | 300,000 | (2,565) | 297,435 | 2.250% | February 1, 2027 | ||||||||||||||||||||||||
2032 Notes | 500,000 | (5,220) | 494,780 | 2.850% | February 1, 2032 | ||||||||||||||||||||||||
Total | $ | 1,200,000 | $ | (10,141) | $ | 1,189,859 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 6. | Exhibits. |
Exhibit Index | |||||
3.1 | |||||
3.2 | |||||
15 | |||||
31 | |||||
32 | |||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
101.SCH | XBRL Taxonomy Extension Schema Document | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
SONOCO PRODUCTS COMPANY | ||||||||||||||
(Registrant) | ||||||||||||||
Date: | November 2, 2022 | By: | /s/ Robert R. Dillard | |||||||||||
Robert R. Dillard | ||||||||||||||
Chief Financial Officer | ||||||||||||||
(principal financial officer) | ||||||||||||||
/s/ Aditya Gandhi | ||||||||||||||
Aditya Gandhi | ||||||||||||||
Chief Accounting Officer | ||||||||||||||
(principal accounting officer) |
1 | I have reviewed this quarterly report on Form 10-Q of Sonoco Products Company; |
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4 | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5 | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 2, 2022 | By: | /s/ R. Howard Coker | |||||||||||||||||
R. Howard Coker | ||||||||||||||||||||
President and Chief Executive Officer | ||||||||||||||||||||
1 | I have reviewed this quarterly report on Form 10-Q of Sonoco Products Company; |
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4 | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5 | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 2, 2022 | By: | /s/ Robert R. Dillard | |||||||||||||||||
Robert R. Dillard | ||||||||||||||||||||
Chief Financial Officer | ||||||||||||||||||||
/s/ R. Howard Coker | ||||||||||||||
R. Howard Coker | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
/s/ Robert R. Dillard | ||||||||||||||
Robert R. Dillard | ||||||||||||||
Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands |
Oct. 02, 2022 |
Dec. 31, 2021 |
|||
---|---|---|---|---|---|
Current Assets | |||||
Cash and cash equivalents | [1] | $ 182,238 | $ 170,978 | ||
Trade accounts receivable, net of allowances | [1] | 972,874 | 755,609 | ||
Other receivables | [1] | 113,206 | 95,943 | ||
Inventories, net: | |||||
Finished and in process | [1] | 460,872 | 199,823 | ||
Materials and supplies | [1] | 555,266 | 362,290 | ||
Prepaid expenses | [1] | 126,864 | 74,034 | ||
Total Current Assets | 2,411,320 | [1] | 1,658,677 | ||
Property, Plant and Equipment, Net | [1] | 1,627,283 | 1,297,500 | ||
Goodwill | [1] | 1,641,948 | 1,324,501 | ||
Other Intangible Assets, Net | [1] | 709,723 | 278,143 | ||
Deferred Income Taxes | [1] | 22,260 | 25,818 | ||
Right of Use Asset-Operating Leases | [1] | 296,838 | 268,390 | ||
Other Assets | [1] | 266,274 | 220,206 | ||
Total Assets | 6,975,646 | [1] | 5,073,235 | ||
Current Liabilities | |||||
Payable to suppliers | [1] | 888,394 | 721,312 | ||
Accrued expenses and other | [1] | 413,547 | 381,350 | ||
Notes payable and current portion of long-term debt | [1] | 416,929 | 411,557 | ||
Accrued taxes | [1] | 36,602 | 11,544 | ||
Total Current Liabilities | 1,755,472 | [1] | 1,525,763 | ||
Long-term Debt, Net of Current Portion | [1] | 2,723,101 | 1,199,106 | ||
Noncurrent Operating Lease Liabilities | [1] | 253,466 | 234,167 | ||
Pension and Other Postretirement Benefits | [1] | 152,118 | 158,265 | ||
Deferred Income Taxes | [1] | 115,221 | 70,482 | ||
Other Liabilities | [1] | 41,187 | 35,911 | ||
Common stock, no par value | |||||
Authorized 300,000 shares 97,512 and 97,370 shares issued and outstanding at October 2, 2022 and December 31, 2021, respectively | [1] | 7,175 | 7,175 | ||
Capital in excess of stated value | [1] | 134,917 | 119,690 | ||
Accumulated other comprehensive loss | [1] | (512,525) | (359,425) | ||
Retained earnings | [1] | 2,299,040 | 2,070,005 | ||
Total Sonoco Shareholders’ Equity | 1,928,607 | [1] | 1,837,445 | ||
Noncontrolling Interests | [1] | 6,474 | 12,096 | ||
Total Equity | [1] | 1,935,081 | 1,849,541 | ||
Total Liabilities and Equity | [1] | $ 6,975,646 | $ 5,073,235 | ||
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - shares shares in Thousands |
Oct. 02, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 300,000 | 300,000 |
Common stock, shares issued (in shares) | 97,512 | 97,370 |
Common stock, shares outstanding (in shares) | 97,512 | 97,370 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Income Statement [Abstract] | ||||
Net sales | $ 1,890,216 | $ 1,415,193 | $ 5,574,530 | $ 4,151,251 |
Cost of sales | 1,523,070 | 1,157,462 | 4,448,818 | 3,352,966 |
Gross profit | 367,146 | 257,731 | 1,125,712 | 798,285 |
Selling, general and administrative expenses | 164,552 | 130,580 | 533,875 | 404,617 |
Restructuring/Asset impairment charges | 20,652 | 3,488 | 43,357 | 8,889 |
Gain/(loss) on divestiture of business | 0 | 2,849 | 0 | (2,667) |
Operating profit | 181,942 | 126,512 | 548,480 | 382,112 |
Non-operating pension costs | 1,249 | 525 | 4,251 | 562,818 |
Interest expense | 26,714 | 14,753 | 71,242 | 50,767 |
Interest income | 1,148 | 534 | 3,450 | 4,023 |
Loss on early extinguishment of debt | 0 | 0 | 0 | 20,184 |
Income/(Loss) before income taxes | 155,127 | 111,768 | 476,437 | (247,634) |
Provision for/(Benefit from) income taxes | 36,824 | 2,564 | 116,712 | (91,542) |
Income/(Loss) before equity in earnings of affiliates | 118,303 | 109,204 | 359,725 | (156,092) |
Equity in earnings of affiliates, net of tax | 4,199 | 2,351 | 10,151 | 5,701 |
Net income/(loss) | 122,502 | 111,555 | 369,876 | (150,391) |
Net (income)/loss attributable to noncontrolling interests | (273) | (415) | (642) | (243) |
Net income/(loss) attributable to Sonoco | $ 122,229 | $ 111,140 | $ 369,234 | $ (150,634) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 98,013 | 98,955 | 97,978 | 100,039 |
Diluted (in shares) | 98,762 | 99,425 | 98,669 | 100,039 |
Net income/(loss) attributable to Sonoco: | ||||
Basic (in usd per share) | $ 1.25 | $ 1.12 | $ 3.77 | $ (1.51) |
Diluted (in usd per share) | $ 1.24 | $ 1.12 | $ 3.74 | $ (1.51) |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income/(loss) | $ 122,502 | $ 111,555 | $ 369,876 | $ (150,391) |
Other comprehensive (loss)/income: | ||||
Foreign currency translation adjustments | (81,972) | (37,741) | (151,580) | (57,686) |
Changes in defined benefit plans, net of tax | 861 | 1,693 | (876) | 429,823 |
Changes in derivative financial instruments, net of tax | (1,252) | 930 | (792) | 5,370 |
Other comprehensive (loss)/income | (82,363) | (35,118) | (153,248) | 377,507 |
Comprehensive income: | 40,139 | 76,437 | 216,628 | 227,116 |
Less: Net income attributable to noncontrolling interests | (273) | (415) | (642) | (243) |
Less: Other comprehensive loss attributable to noncontrolling interests | 515 | 664 | 148 | 425 |
Comprehensive income attributable to Sonoco | $ 40,381 | $ 76,686 | $ 216,134 | $ 227,298 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Cash Flows from Operating Activities: | ||
Net income/(loss) | $ 369,876 | $ (150,391) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Asset impairments | 13,857 | 3,490 |
Depreciation, depletion and amortization | 231,095 | 185,541 |
Loss on early extinguishment of debt | 0 | 20,184 |
Share-based compensation expense | 25,453 | 17,392 |
Equity in earnings of affiliates | (10,151) | (5,701) |
Cash dividends from affiliated companies | 6,076 | 5,182 |
Net gain on disposition of assets | (178) | (2,376) |
Net loss on divestiture of businesses | 0 | 2,667 |
Pension and postretirement plan expense | 6,951 | 583,340 |
Pension and postretirement plan contributions | (33,548) | (165,280) |
Decrease in net deferred tax liabilities | (1,745) | (164,581) |
Change in assets and liabilities, net of effects from acquisitions and foreign currency adjustments: | ||
Trade accounts receivable | (143,221) | (142,699) |
Inventories | (287,609) | (95,066) |
Payable to suppliers | 113,820 | 163,193 |
Prepaid expenses | (28,854) | (17,756) |
Income taxes payable and other income tax items | 44,493 | (8,531) |
Accrued expenses and other assets and liabilities | 15,740 | (8,530) |
Net cash provided by operating activities | 322,055 | 220,078 |
Cash Flows from Investing Activities: | ||
Purchases of property, plant and equipment | (236,772) | (156,592) |
Cost of acquisitions, net of cash acquired | (1,337,704) | (3,155) |
Proceeds from the sale of businesses, net | 0 | 91,569 |
Proceeds from the sale of assets | 6,040 | 10,536 |
Other net investing activity | (1,976) | 6,776 |
Net cash used in investing activities | (1,570,412) | (50,866) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of debt | 1,579,750 | 138,382 |
Principal repayment of debt | (70,556) | (582,838) |
Net change in commercial paper | (64,000) | 202,000 |
Net decrease in outstanding checks | (16,509) | (10,736) |
Proceeds from foreign exchange forward contracts and interest rate swaps | 0 | 4,387 |
Cash dividends | (139,289) | (134,648) |
Purchase of noncontrolling interest | (14,474) | 0 |
Excess cash costs of early extinguishment of debt | 0 | (20,111) |
Payments for share repurchases | (4,056) | (159,654) |
Net cash provided/(used) by financing activities | 1,270,866 | (563,218) |
Effects of Exchange Rate Changes on Cash | (11,249) | (10,830) |
Net Increase/(Decrease) in Cash and Cash Equivalents | 11,260 | (404,836) |
Cash and cash equivalents at beginning of period | 170,978 | 564,848 |
Cash and cash equivalents at end of period | $ 182,238 | $ 160,012 |
Basis of Interim Presentation |
9 Months Ended |
---|---|
Oct. 02, 2022 | |
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. Certain amounts within “Cash Flows from Operating Activities” in the Condensed Consolidated Statements of Cash Flows for the nine months ended October 3, 2021, have been reclassified to conform to the current year presentation. Operating results for the three- and nine-month periods ended October 2, 2022, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. 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, 2021.With respect to the unaudited condensed consolidated financial information of the Company for the three- and nine-month periods ended October 2, 2022 and October 3, 2021 included in this Form 10-Q, PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report dated November 2, 2022 appearing herein, states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP is not subject to the liability provisions of Section 11 of the Securities Act of 1933 for their report on the unaudited financial information because that report is not a “report” or a “part” of a registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the Act. |
New Accounting Pronouncements |
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Oct. 02, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04 “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” The amendments in this update 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, and a rollforward of the outstanding obligation as of the end of the annual period. The amendments in this update 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 does not plan to elect early adoption of this update and does not expect this pronouncement to materially affect its consolidated financial statements. In March 2022, the FASB issued ASU 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The amendments in this update eliminate the accounting guidance for troubled debt restructurings while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendments in this update also require that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases. The Company does not expect this pronouncement to materially affect its consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” Under current accounting standards, contract assets and contract liabilities acquired in a business combination are to be recorded at fair value using the ASC 805 measurement principle. ASU 2021-08 requires the acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606: Revenue from Contracts with Customers as if the acquirer had originated the contracts rather than at fair value. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company elected to early adopt ASU 2021-08 on a prospective basis as of January 1, 2022. The election to use practical expedients allowed under ASU 2021-08 will be applied on an acquisition-by-acquisition basis. There was no impact to the Company’s consolidated financial statements as of the adoption date. During the nine-month period ended October 2, 2022, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at October 2, 2022, there are no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements.
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Acquisitions and Divestitures |
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Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions On September 23, 2022, the Company entered into a definitive agreement to acquire S.P. Holding, Skjern A/S (“Skjern”), a privately owned manufacturer of paper based in Skjern, Denmark. The estimated $88,000 (purchase price subject to foreign currency fluctuations) all-cash transaction is expected to be completed in the fourth quarter of 2022, subject to customary closing conditions. Skjern produces high-grade paperboard from 100% recycled paper for rigid paper containers, tubes and cores, and other applications. The acquisition is expected to expand production capacity for the Company’s converting operations and customers throughout Europe. On August 31, 2022, the Company completed the acquisition of Nordeste Tubetes and NE Tubetes (collectively “Nordeste”), two small tube and core operations in Brazil. Total consideration for the two businesses was $6,518, including cash paid at closing of $3,933, and deferred payments totaling $2,585 expected to be paid over the next six years. Goodwill for Nordeste, all of which is expected to be deductible for income tax purposes, consists of increased access to certain markets and existing customer relationships. Nordeste's financial results from the date acquired are included in the Company's Industrial Paper Packaging segment. On January 26, 2022, the Company completed the acquisition of Ball Metalpack Holding, LLC, renamed Sonoco Metal Packaging (“Metal Packaging”), a leading supplier of sustainable metal packaging for food and household products and the largest aerosol can producer in North America, for $1,348,589, net of cash acquired. As previously disclosed, final consideration was subject to customary post-closing adjustments for working capital, cash and indebtedness and was finalized in the second quarter of 2022. The Company received cash from the sellers totaling $14,820, of which $6,924 was included in “Other receivables” in the Company's Condensed Consolidated Balance Sheet at April 3, 2022. Prior to the Company's acquisition of Metal Packaging, Ball Metalpack Holding, LLC was a joint venture formed in 2018 and owned by Platinum Equity (51%) and Ball Corporation (49%). Metal Packaging consists of eight manufacturing plants in the United States and a headquarters facility in Broomfield, Colorado. This acquisition fits the Company's strategy of investing in its core businesses as it complements the Company's largest Consumer Packaging franchise, global rigid paper containers, and further expands the Company's sustainable packaging portfolio to include metal packaging. The Company's initial preliminary fair values of the assets acquired and the liabilities assumed in the Metal Packaging acquisition, as well as revised preliminary fair values reflecting adjustments made during the measurement period, are as follows:
The allocation of the purchase price of Metal Packaging to the tangible and intangible assets acquired and liabilities assumed, as reflected under the heading “Revised Allocation” in the table above, is based on the Company's preliminary estimates of their fair value, based on information currently available. Management is continuing to finalize its valuation of certain assets and liabilities including, but not limited to: inventory; property, plant and equipment; goodwill; other intangible assets; deferred income taxes; trade accounts receivable; and accrued expenses and other, and expects to complete its valuations within one year of the date of acquisition. Factors comprising goodwill include increased access to certain markets as well as the value of the assembled workforce. Approximately 67% of goodwill is expected to be deductible for income tax purposes. Metal Packaging's financial results are included in the Company's Consumer Packaging segment. The Company has accounted for this acquisition as a business combination under the acquisition method and has included the results of operations of the acquired business in the Company's Condensed Consolidated Statements of Income from the date of acquisition. The following table presents the unaudited financial results for Metal Packaging for the three-month period ended October 2, 2022 and from the date of acquisition through October 2, 2022:
The following table presents the Company’s estimated unaudited pro forma consolidated results for the three- and nine-month periods ended October 2, 2022 and October 3, 2021, assuming the acquisition of Metal Packaging had occurred on January 1, 2021. This unaudited pro forma information is presented for informational purposes only and does not purport to represent the results of operations that would have been achieved if the acquisition had been completed at the beginning of 2021, nor is it necessarily indicative of future consolidated results.
The unaudited pro forma information above does not project the Company’s expected results for any future period and gives no effect to any future synergistic benefits that may result from the combination or the costs of integrating the acquired operations with those of the Company. Unaudited pro forma information for the three- and nine-month periods ended October 2, 2022 and October 3, 2021 includes adjustments to depreciation, amortization, and income taxes based upon the preliminary fair value allocation of the purchase price to Metal Packaging's tangible and intangible assets acquired and liabilities assumed as though the acquisition had occurred on January 1, 2021. Interest expense on the additional debt issued by the Company to fund the acquisition and retention bonuses incurred related to the acquisition are also included in the unaudited pro forma information as if the acquisition had occurred on January 1, 2021. Acquisition-related costs of $793 and $27,195 were recognized during the three- and nine-month periods ended October 2, 2022, respectively, and charges related to fair value adjustments to acquisition-date inventory of $33,155 were recognized during the nine-month period ended October 2, 2022. These costs are excluded from 2022 unaudited pro forma net income and are instead reflected in 2021 pro forma net income as though the acquisition had occurred on January 1, 2021. Divestitures As previously disclosed, the Company completed the sale of its U.S. display and packaging business, part of the All Other group of businesses, to Hood Container Corporation on April 4, 2021 for $80,000 in cash. This business provided design, manufacturing and fulfillment of point-of-purchase displays, as well as contract packaging services, for consumer product customers and had approximately 450 employees. Its operations included eight manufacturing and fulfillment facilities and four sales and design centers. The selling price was adjusted at closing for certain transaction expenses and for anticipated differences between targeted levels of working capital and the projected levels at the time of closing. Net cash proceeds of $79,704 were received on April 5, 2021 and the Company recognized a loss on the divestiture of this business of $5,516, before tax, in the first quarter of 2021. During the quarter ended October 3, 2021, the Company finalized the working capital settlement related to this sale. The settlement resulted in additional cash proceeds of $1,971 and the buyer's assumption of certain liabilities totaling $786. As a result, the Company recognized a reduction in the previously reported loss on the sale of this business of $2,757, before tax, in the third quarter of 2021, bringing the total loss on the sale of business to $2,759, before tax. On September 30, 2021, the Company completed the sale of its plastics foods thermoforming business in Wilson, North Carolina (“Wilson Thermoforming”) to Placon for net cash proceeds of $3,528, resulting in the recognition of a pre-tax gain on the sale of $92. The Company continually assesses its operational footprint as well as its overall portfolio of businesses and may consider the divestiture of plants and/or business units it considers to be suboptimal or nonstrategic. Acquisition and Divestiture-Related Costs Acquisition- and divestiture-related costs totaled $2,022 and $62,655 during the three- and nine-month periods ended October 2, 2022, respectively, primarily related to the Metal Packaging acquisition. These costs include legal and professional fees, investment banking fees, representation and warranty insurance premiums, and other transaction costs, totaling $2,022 and $29,500 during the three- and nine-month periods ended October 2, 2022, respectively, that are included in “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income. The costs for the nine-month period ended October 2, 2022 also include fair value adjustments to acquisition-date inventory totaling $33,155, that are included in “Cost of sales” in the Company's Condensed Consolidated Statements of Income. Acquisition and divestiture-related costs totaled $1,015 and $12,503 during the three- and nine-month periods ended October 3, 2021, respectively. These costs, consisting primarily of legal and professional fees, are included in “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income.
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Shareholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders' Equity Earnings/(loss) per Share The following table sets forth the computation of basic and diluted earnings/(loss) per share:
No adjustments were made to “Net income/(loss) attributable to Sonoco” in the computations of net income/(loss) attributable to Sonoco per common share. Anti-dilutive Securities Potentially dilutive securities are calculated in accordance with the treasury stock method, which assumes the proceeds from the exercise of all dilutive stock appreciation rights (“SARs”) are used to repurchase the Company’s common stock. Certain SARs are not dilutive because either the exercise price is greater than the average market price of the stock during the reporting period or assumed repurchases from proceeds from the exercise of the SARs were anti-dilutive. These SARs may become dilutive in the future if the market price of the Company's common stock appreciates. The average numbers of SARs that were anti-dilutive and, therefore, not included in the computation of diluted earnings per share during the three- and nine-month periods ended October 2, 2022 and October 3, 2021 were as follows (in thousands):
Diluted earnings per share is computed by dividing net income by the weighted average shares outstanding, assuming all dilutive potential common shares were issued unless doing so is anti-dilutive. Such securities have an anti-dilutive impact in those periods in which a loss is reported. Diluted net loss per share of common stock for the nine-month period ended October 3, 2021 is the same as basic net loss per share because otherwise dilutive securities are excluded from the computation of diluted net loss per share. The following table sets forth the potentially dilutive securities excluded from the computation of diluted net loss per share during the nine-month period ended October 3, 2021:
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 purchased under this authorization during the nine months ended October 2, 2022. On May 10, 2021, the Company entered into an accelerated share repurchase agreement (“ASR Agreement”) with a financial institution to repurchase outstanding shares of the Company's common stock. In exchange for an upfront payment of $150,000, which was funded with available cash on hand, the financial institution delivered 1,751 initial shares to the Company, representing 80% of the expected number of shares to be repurchased during the repurchase period based upon an estimated average repurchase price of $68.50 per share. The initial shares received were retired by the Company. The final number of shares repurchased and retired were based on the Company's volume-weighted average share price during the repurchase period, less a discount and subject to certain adjustments. Pursuant to the ASR agreement, the financial institution elected to accelerate the settlement of the transaction in two tranches. On July 21, 2021, the financial institution transferred 168 additional shares to the Company based upon an effective settlement price of $66.52 and a notional value of $50,000, or one third of the total $150,000 prepayment. On July 26, 2021, the financial institution transferred 337 additional shares to the Company upon full settlement of the remaining $100,000 notional value of the transaction at the final settlement price of $66.45. On May 6, 2021, the Company repurchased 54 shares for $3,615 from a private stockholder based upon the average closing stock price on that day. The cost of these share repurchases, as well as those related to the accelerated share agreement mentioned above, was allocated to “Capital in excess of stated value” on the Company's Condensed Consolidated Balance Sheet for the period ended July 4, 2021. 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 71 shares during the nine months ended October 2, 2022, at a cost of $4,056, and 100 shares during the nine months ended October 3, 2021, at a cost of $6,039. Dividend Declarations On July 20, 2022, the Board of Directors declared a regular quarterly dividend of $0.49 per share. This dividend was paid on September 9, 2022 to all shareholders of record as of August 10, 2022. On October 18, 2022, the Board of Directors declared a regular quarterly dividend of $0.49 per share. This dividend is payable on December 9, 2022 to all shareholders of record as of November 10, 2022. Noncontrolling interests In April 2015, the Company acquired a 67% controlling interest in Graffo Paranaense de Embalagens S/A (“Graffo”). Prior to March 31, 2022, the Company consolidated 100% of Graffo, with the partner's 33% share included in “Noncontrolling Interests” within the equity section of the balance sheet. On March 31, 2022, the Company paid $14,474 in cash to acquire the remaining 33% ownership interest from the three noncontrolling partners, which resulted in a $6,116 reduction in noncontrolling interest, a $7,080 charge to capital in excess of stated value, and a $1,278 reduction to accrued expenses and other on the Company's Condensed Consolidated Balance Sheet as of July 3, 2022.
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Restructuring and Asset Impairments |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Asset Impairments | Restructuring and Asset ImpairmentsDue to its geographic footprint and the cost-competitive nature of its businesses, the Company is continually seeking the most cost-effective means and structure to serve its customers and to respond to fundamental changes in its markets. As such, restructuring costs have been, and are expected to be, a recurring component of the Company's operating costs. The amount of these costs can vary significantly from quarter to quarter and from year to year depending upon the scope and location of the restructuring activities. Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented:
The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred:
The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment:
Restructuring and restructuring-related asset impairment charges are included in “Restructuring/Asset impairment charges” in the Company's Condensed Consolidated Statements of Income. The following table sets forth the activity in the restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets:
“Severance and Termination Benefits” during the first nine months of 2022 includes the cost of severance for approximately 180 employees whose positions were eliminated in conjunction with the Company's ongoing organizational effectiveness efforts. “Asset Impairments/Disposal of Assets” during the first nine months of 2022 consists primarily of asset impairment charges related to plant closures and the shutdown of operations in the Consumer Packaging and Industrial Paper Packaging segments. These charges were partially offset by gains from the sale of previously impaired assets and closed facilities in the “All Other” group of businesses. Cash proceeds in the first nine months of 2022 relate to the sales of these assets and facilities as well as the partial sale of a previously closed operation in Canada, part of the Industrial Paper Packaging segment. “Other Costs” during the first nine months of 2022 consists primarily of consulting services and costs related to plant closures including equipment removal, utilities, plant security, property taxes and insurance. The Company expects to pay the majority of the remaining restructuring reserves by the end of 2022 using cash generated from operations. The Company also expects to recognize future additional charges totaling approximately $8,200 in connection with previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2022. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken. Other Asset Impairments The Company recognized other asset impairment charges totaling $10,095 in the nine-month period ended October 2, 2022. As a result of the Company exiting its operations in Russia, consisting of two small tube and core plants in the Industrial Paper Packaging segment, other asset impairment charges of $9,165 were recognized in the nine-month period ended October 2, 2022. These charges include $3,747 of cumulative translation adjustment losses that were reclassified from accumulated other comprehensive income upon completion of the Company's exit from Russia on July 1, 2022. Total other asset impairment charges in the nine-month period ended October 2, 2022 also include $930 of fixed asset impairments in the Company's plastics foods operations, part of the Consumer Packaging segment. These assets were determined to be impaired as the value of their projected undiscounted cash flows was no longer sufficient to recover their carrying value. The Company recognized other asset impairment charges totaling $284 and $4,841 in the three- and nine-month periods ended October 3, 2021, respectively. The year-to-date charges consist of fixed asset impairments totaling $2,442 in the Company's plastics foods operations, part of the Consumer Packaging segment, and $2,399 in the temperature-assured packaging business, part of the All Other group of businesses. The assets were impaired as the value of their projected undiscounted cash flows was determined to no longer be sufficient to recover their carrying value. These impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s Condensed Consolidated Statements of Income.
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Accumulated Other Comprehensive Loss |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossThe following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the nine-month period ended October 2, 2022 and October 3, 2021:
The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three- and nine-month periods ended October 2, 2022 and October 3, 2021:
(a) See Note 5 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 (loss)/income for the three-month periods ended October 2, 2022 and October 3, 2021:
(a) See Note 5 for additional details. (b) See Note 11 for additional details. (c) See Note 9 for additional details. The following table summarizes the before and after tax amounts for the various components of other comprehensive (loss)/income for the nine-month periods ended October 2, 2022 and October 3, 2021:
(a) See Note 5 for additional details. (b) See Note 11 for additional details. (c) See Note 9 for additional details.
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill A summary of the changes in goodwill for the nine-month period ended October 2, 2022 is as follows:
Goodwill activity reflected under the captions “2022 Acquisitions” and “Measurement period adjustments” relate to the January 26, 2022 acquisition of Metal Packaging and the August 31, 2022 acquisition of Nordeste. See Note 3 for additional information. The Company assesses goodwill for impairment annually during the third quarter, or from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. The Company completed its most recent annual goodwill impairment testing during the third quarter of 2022 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 balances of the Plastics - Healthcare and Protexic reporting units are at risk of impairment in the near term if each 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. In the annual goodwill impairment analysis completed during the third quarter of 2022, projected future cash flows for the Plastics - Healthcare reporting unit were discounted at 9.8% and its estimated fair value was determined to exceed its carrying value by approximately 18.0%. Based on the discounted cash flow model and holding other valuation assumptions constant, the discount rate would have to be increased to 11.0% in order for the estimated fair value of the reporting unit to fall below carrying value. Total goodwill associated with this reporting unit was $60,710 at October 2, 2022. In the annual goodwill impairment analysis completed during the third quarter of 2022, projected future cash flows for the Protexic reporting unit were discounted at 9.5% and its estimated fair value was determined to exceed its carrying value by approximately 18.3%. Based on the discounted cash flow model and holding other valuation assumptions constant, the discount rate would have to be increased to 11.5% in order for the estimated fair value of the reporting unit to fall below carrying value. Total goodwill associated with this reporting unit was $29,051 at October 2, 2022. During the time subsequent to the annual evaluation, and at October 2, 2022, the Company considered whether any events and/or changes in circumstances had resulted in the likelihood that the goodwill of any of its reporting units may have been impaired. It is management's opinion that no such events and/or changes in circumstances have occurred. Other Intangible Assets A summary of other intangible assets as of October 2, 2022 and December 31, 2021 is as follows:
The acquisition of Metal Packaging on January 26, 2022 resulted in the addition of $498,000 of intangible assets, primarily customer lists and proprietary technology, which are expected to be amortized over their average useful lives of approximately 13.6 years. See Note 3 for additional information about the Metal Packaging acquisition. Other Intangible Assets are amortized on a straight-line basis over their respective useful lives, which generally range from to forty years. The Company has no intangible assets with indefinite lives. Aggregate amortization expense was $20,690 and $12,257 for the three-month periods ended October 2, 2022 and October 3, 2021, respectively, and $60,361 and $37,117 for the nine-month periods ended October 2, 2022 and October 3, 2021, respectively. Amortization expense on other intangible assets is expected to total approximately $80,800 in 2022, $79,100 in 2023, $71,700 in 2024, $61,100 in 2025 and $57,800 in 2026.
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Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Details of the Company's debt at October 2, 2022 and December 31, 2021 are as follows:
On January 21, 2022, the Company completed a registered public offering of green bonds with an aggregate principal amount of $1,200,000. These unsecured notes (the “Notes”) consisted of the following:
The Notes are senior unsecured obligations and rank equal in right of payment to the Company’s other senior unsecured debt from time to time outstanding. The indenture governing the Notes contains certain covenants with respect to the Company that, among other things, restrict the entry into additional secured indebtedness, sale and leaseback transactions and certain mergers, consolidations and transfers of all or substantially all of the Company’s assets. The Company used an amount equal to the net proceeds from the Notes to partially fund the January 26, 2022 acquisition of Metal Packaging. Also on January 21, 2022, the Company entered into a $300,000 three-year term loan facility (the “Term Loan Facility”) with a syndicate of eight banks. The full $300,000 was drawn from this facility on January 26, 2022, and the proceeds used to partially fund the acquisition of Metal Packaging. Interest is assessed at the Secured Overnight Financing Rate (“SOFR”) plus a margin based on a pricing grid that uses the Company’s credit ratings. The current SOFR margin is 122.5 basis points. There is no required amortization and repayment can be accelerated at any time without penalty at the Company's discretion. Borrowings under the Term Loan Facility mature on January 27, 2025. On April 28, 2021, the Company commenced a cash tender offer to purchase up to $300,000 of the $600,000 then-outstanding principal amount of its 5.750% notes due November 2040. Upon expiration of the tender offer on May 25, 2021, the Company repurchased 10.53% of its outstanding 5.750% notes for a total cash cost of $81,961, as shown below:
On April 28, 2021, the Company entered into a reverse treasury lock agreement intended to fix the cash cost to fund approximately $100,000 of the maximum $300,000 principal amount subject to being tendered. The settlement of the reverse treasury lock on May 13, 2021 resulted in a loss of $1,356. In addition, the Company wrote off a proportional share of unamortized bond issuance costs and unamortized original issue discounts associated with the 5.750% notes. These non-cash writeoffs net to $73, which combined with the hedge loss and premium and other amounts paid, resulted in a pretax loss from the early extinguishment of debt totaling $20,184 during the second quarter of 2021. The Company's 150,000 euro-denominated loan, which bore 1% annual interest, matured on May 25, 2021, and a U.S. dollar equivalent cash payment of $177,780 was made to settle the debt. On April 7, 2021, the Company entered into two forward contracts to buy a total of 150,000 euros in order to manage foreign currency risk related to the Company's funding of the debt repayment upon maturity. The Company recognized a gain of $4,387 upon the May 21, 2021 maturity of these forward contracts. The gain is included in “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income for the nine-month period ended October 3, 2021 and the proceeds from the settlement of the contracts and the debt maturity payment are reflected in “Net cash provided/(used) by financing activities” in the Company’s Condensed Consolidated Statement of Cash Flows for the nine months ended October 3, 2021. Certain of the Company’s debt agreements impose restrictions with respect to the maintenance of financial ratios and the disposition of assets. The most restrictive covenants currently require the Company to maintain a minimum level of interest coverage and a minimum level of net worth, as defined in the agreements. As of October 2, 2022, the Company’s interest coverage and net worth were substantially above the minimum levels required under these covenants.
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Financial Instruments and Derivatives |
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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.
The carrying value of cash and cash equivalents and short-term debt approximates fair value. The fair value of long-term debt is determined based on recent trade information in the financial markets of the Company’s public debt or is determined by discounting future cash flows using interest rates available to the Company for issues with similar terms and maturities which is considered a Level 2 fair value measurement. Cash Flow Hedges At October 2, 2022 and December 31, 2021, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows. These contracts, which have maturities ranging to December 2024, qualify as cash flow hedges under U.S. GAAP. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. Commodity Cash Flow Hedges Certain derivative contracts entered into to manage the cost of anticipated purchases of natural gas and aluminum have been designated by the Company as cash flow hedges. At October 2, 2022, these contracts included natural gas swaps covering approximately 600,000 MMBTUs. These contracts represented approximately 24% of anticipated usage in North America for the remainder of 2022 and 1% of anticipated usage in both 2023 and 2024. The Company also has certain natural gas hedges that it does not treat as cash flow hedges. See “Non-Designated Derivatives” below for a discussion of these hedges. The fair value of the Company’s commodity cash flow hedges netted to a gain position of $1,892 and $1,491 at October 2, 2022 and December 31, 2021, respectively. The amount of the gain included in Accumulated Other Comprehensive Income at October 2, 2022 expected to be reclassified to the income statement during the next twelve months is $1,881. Foreign Currency Cash Flow Hedges The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales, purchases, and capital spending expected to occur in 2022 and 2023. The net positions of these contracts at October 2, 2022 were as follows (in thousands):
The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to a loss position of $(36) and a gain position of $336 at October 2, 2022 and December 31, 2021, respectively. Losses of $(36) are expected to be reclassified from accumulated other comprehensive loss to the income statement during the next twelve months. In addition, the Company has entered into forward contracts to hedge certain foreign currency cash flow transactions related to construction in progress. As of October 2, 2022 and December 31, 2021, the net position of these contracts was $(1,476) and $(457), respectively. During the nine-month period ended October 2, 2022, losses from these hedges totaling $864 were reclassified from accumulated other comprehensive loss and included in the carrying value of the capitalized expenditures. Losses of $1,476 are expected to be reclassified from accumulated other comprehensive loss and included in the carrying value of the related fixed assets acquired during the next twelve months. 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. Foreign Currency Hedges The Company routinely enters into forward contracts or swaps to economically hedge the currency exposure of intercompany debt and foreign currency denominated receivables and payables. The net currency positions of these non-designated contracts at October 2, 2022, were as follows (in thousands):
Commodity Hedges The Company has entered into non-designated derivative contracts to manage the cost of anticipated purchases of natural gas. At October 2, 2022, these contracts consisted of natural gas swaps covering approximately 8.2 million MMBTUs and represented approximately 47% of anticipated usage in North America for the remainder of 2022 and 69% and 17% of anticipated usage in 2023 and 2024, respectively. Interest Rate Hedges Pursuant to the registered public offering of unsecured 2.850% notes with a principal amount of $500,000 maturing on February 1, 2032, the Company entered into treasury lock derivative instruments with two banks, with a notional principal amount of $150,000 each on December 29, 2021. These instruments had the risk management objective of reducing exposure to the Company of increases in the underlying Treasury index up to the date of pricing of the notes. The fair value of the contracts was a net loss position of $(550) at December 31, 2021. The derivatives were settled when the bonds priced on January 11, 2022, with the Company recognizing a gain on the settlement of $5,201. The gain is included in “Selling, general and administrative expenses” on the Company's Condensed Consolidated Statements of Income for the nine-month period ended October 2, 2022. The fair value of the Company’s non-designated derivatives position was a gain of $2,369 and $92 at October 2, 2022 and December 31, 2021, respectively. The following table sets forth the location and fair values of the Company’s derivative instruments at October 2, 2022 and December 31, 2021:
While certain of the Company’s derivative contract arrangements with its counterparties provide for the ability to settle contracts on a net basis, the Company reports its derivative positions on a gross basis. There are no collateral arrangements or requirements in these agreements. The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three-month periods ended October 2, 2022 and October 3, 2021, 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:
The following tables set forth the effect of the Company’s derivative instruments on financial performance for the nine months ended October 2, 2022 and October 3, 2021, 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:
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Fair Value Measurements |
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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:
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:
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. The Company does not currently have any non-financial assets or liabilities that are recognized or disclosed at fair value on a recurring basis. None of the Company’s financial assets or liabilities are measured at fair value using significant unobservable inputs. There were no transfers in or out of Level 1 or Level 2 fair value measurements during the three- and nine-month periods ended October 2, 2022.
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Employee Benefit Plans |
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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:
Settlement Charges The Company recognized settlement charges of $430 and $361 during the nine-month periods ended October 2, 2022 and October 3, 2021, respectively. These charges resulted from payments made to certain participants in the Company's non-union Canadian pension plan who elected a lump sum distribution option upon retirement. Additional settlement charges related to the Canadian pension plans may be recognized over the remainder of 2022 as a result of ongoing lump-sum distributions. The Company terminated the Sonoco Pension Plan for Inactive Participants (the “Inactive Plan”), a tax-qualified defined benefit plan, effective September 30, 2019, and settled the liabilities of the Inactive Plan in the second quarter of 2021 through a combination of lump-sum payments and the purchase of group annuity contracts, resulting in the recognition of non-cash, pre-tax settlement charges totaling $547,291 in the second quarter of 2021. Contributions The Company made aggregate contributions of $11,600 and $142,615 to its defined benefit retirement and retiree health and life insurance plans during the nine-month periods ended October 2, 2022 and October 3, 2021, respectively. The 2021 contributions include $133,000 contributed to the Inactive Plan during the second quarter of 2021 in order for it to be fully funded upon final settlement. The Company expects to make additional aggregate contributions of approximately $4,100 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2022. Sonoco Retirement and Savings Plan The Sonoco Retirement and Savings Plan is a defined contribution retirement plan provided for certain of the Company’s U.S. employees. The plan is comprised of both an elective and non-elective component. The elective component of the plan, which is designed to meet the requirements of Section 401(k) of the Internal Revenue Code, allows participants to set aside a portion of their wages and salaries for retirement and encourages saving by matching a portion of their contributions with contributions from the Company. The plan provides for participant contributions of 1% to 100% of gross pay. Effective January 1, 2022, the Company’s match on elective contributions to the plan increased from 50% of the first 4% of compensation contributed by participants to 100% of the first 6% as a result of changes to the plan, described below. The non-elective component of the plan, the Sonoco Retirement Contribution (“SRC”), was eliminated effective January 1, 2022. The SRC provided for an annual Company contribution equal to 4% of the participant's eligible pay plus 4% of eligible pay in excess of the social security wage base to eligible participant accounts. SRC contributions were funded annually in the first quarter, following the year in which the benefit was earned. SRC contributions totaled $21,948 and $22,665 during the nine-month periods ended October 2, 2022 and October 3, 2021, respectively. No additional SRC contributions will occur. The Company recognized expense related to the SRC of $5,456 and $17,290 for the three- and nine-month periods ended October 3, 2021, respectively.
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Income Taxes |
9 Months Ended |
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Oct. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rates for the three- and nine-month periods ended October 2, 2022 were 23.7% and 24.5%, respectively, and its rates for the three- and nine-month periods ended October 3, 2021 were 2.3% and 37.0%, 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 that were not consistent year over year. The higher 2022 rate was primarily driven by the absence of the 2021 benefit associated with the amendment of the Company’s 2017 tax return to report increased utilization of its foreign tax credits. 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 2016. The Company’s reserve for uncertain tax benefits has increased by $1,614 since December 31, 2021 due primarily to an increase in reserves related to existing tax positions. The Company believes that it is reasonably possible that the amount reserved for unrecognized tax benefits at October 2, 2022 could increase by approximately $200 over the next twelve months. Although the Company’s estimate for the potential outcome for any uncertain tax issue is highly judgmental, management believes that any reasonably foreseeable outcomes related to these matters have been adequately provided for. However, future results may include favorable or unfavorable adjustments to estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. Additionally, the jurisdictions in which earnings or deductions are realized may differ from current estimates. As a result, the Company’s effective tax rate may fluctuate significantly on a quarterly basis. The Company has operations and pays taxes in many countries outside of the U.S. and taxes on those earnings are subject to varying rates. The Company is not dependent upon the favorable benefit of any one jurisdiction to an extent that the loss of such benefit would have a material effect on the Company’s overall effective tax rate.
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Leases |
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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. Most real estate leases, in particular, include one or more options to renew, with renewal terms that typically extend the lease term in increments from to five years. The Company's leases do not have any significant residual value guarantees or restrictive covenants. 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 acquisition of Metal Packaging on January 26, 2022. The acquisition included both operating and finance lease assets and liabilities. The acquired operating lease liabilities of $33,910 had a weighted average remaining lease maturity term and discount rate of 11.0 years and 2.8%, respectively, and the acquired finance lease liabilities of $46,687 had a weighted average remaining lease maturity term and discount rate of 3.8 years and 7.5%, respectively, as of the date of the acquisition. The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at October 2, 2022 and December 31, 2021:
Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term. The following table sets forth the components of the Company’s total lease cost for the three- and nine-month periods ended October 2, 2022 and October 3, 2021:
(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. (d) Impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s Consolidated Statements of Income. See Note 5 for more information. The following table sets forth certain lease-related information for the nine-month periods ended October 2, 2022 and October 3, 2021:
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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. Most real estate leases, in particular, include one or more options to renew, with renewal terms that typically extend the lease term in increments from to five years. The Company's leases do not have any significant residual value guarantees or restrictive covenants. 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 acquisition of Metal Packaging on January 26, 2022. The acquisition included both operating and finance lease assets and liabilities. The acquired operating lease liabilities of $33,910 had a weighted average remaining lease maturity term and discount rate of 11.0 years and 2.8%, respectively, and the acquired finance lease liabilities of $46,687 had a weighted average remaining lease maturity term and discount rate of 3.8 years and 7.5%, respectively, as of the date of the acquisition. The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at October 2, 2022 and December 31, 2021:
Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term. The following table sets forth the components of the Company’s total lease cost for the three- and nine-month periods ended October 2, 2022 and October 3, 2021:
(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. (d) Impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s Consolidated Statements of Income. See Note 5 for more information. The following table sets forth certain lease-related information for the nine-month periods ended October 2, 2022 and October 3, 2021:
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition The Company records revenue when control is transferred to the customer, which is either upon shipment or over time in cases where the Company is entitled to payment with margin for products produced that are customer specific without alternative use. The Company recognizes over time revenue under the input method as goods are produced. Revenue that is recognized at a point in time is recognized when the customer obtains control of the goods. Customers obtain control either when goods are delivered to the customer facility, if the Company is responsible for arranging transportation, or when picked up by the customer's designated carrier. The Company commonly enters into Master Supply Arrangements with customers to provide goods and/or services over specific time periods. Customers submit purchase orders with quantities and prices to create a contract for accounting purposes. Shipping and handling expenses are included in “Cost of Sales,” and freight charged to customers is included in “Net Sales” in the Company's Condensed Consolidated Statements of Income. The Company has rebate agreements with certain customers. These rebates are recorded as reductions of revenue and are accrued using sales data and rebate percentages specific to each customer agreement. Accrued customer rebates are included in “Accrued expenses and other” in the Company’s Condensed Consolidated Balance Sheets. Payment terms under the Company's sales arrangements are short term, generally no longer than 120 days. The Company does provide prompt payment discounts to certain customers if invoices are paid within a predetermined period. Prompt payment discounts are treated as a reduction of revenue and are determinable within a short time period following the sale. The following tables set forth the effects of contract assets and liabilities from contracts with customers. Contract assets and liabilities are reported in “Other receivables” and “Accrued expenses and other,” respectively, on the Company’s Condensed Consolidated Balance Sheets.
Significant changes in the contract assets and liabilities balances during the nine-month period ended October 2, 2022 and the year ended December 31, 2021 were as follows:
Contract assets and liabilities are generally short in duration given the nature of products produced by the Company. Contract assets represent goods produced without alternative use for which the Company is entitled to payment with margin prior to shipment. Upon shipment, the Company is entitled to bill the customer, and therefore amounts included in contract assets will be reduced with the recording of an account receivable as they represent an unconditional right to payment. Contract liabilities represent revenue deferred due to pricing mechanisms utilized by the Company in certain multi-year arrangements, volume rebates, and payments received in advance. For multi-year arrangements with pricing mechanisms, the Company will generally defer revenue during the first half of the arrangement and will release the deferral over the back half of the contract term. The Company’s reportable segments are aligned by product nature as disclosed in Note 15. The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended October 2, 2022 and October 3, 2021. The tables also include a reconciliation of disaggregated revenue with reportable segments.
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Segment Reporting |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other. The Consumer Packaging segment primarily serves prepared and fresh food markets along with other packaging for consumer products. The products produced and sold within the Consumer Packaging segment are generally used to package a variety of consumer products and consist primarily of round and shaped rigid paper containers; steel tinplate cans and aerosol containers; thermoformed plastic trays and containers; and flexible packaging. Total assets of the Consumer Packaging segment increased by $1,661,573 upon the acquisition of Metal Packaging on January 26, 2022. The Industrial Paper Packaging segment serves customers who use its products to package their goods for transport, storage or sale or to produce similar fiber-based products. The primary products produced and sold within this segment include fiber-based tubes, cones, and cores; fiber-based protective packaging and components; reels; and recycled paperboard. Businesses grouped as All Other include healthcare packaging, protective and retail security packaging and industrial plastic products. These businesses include the following products and services: thermoformed rigid plastic trays and devices; custom-engineered molded foam protective packaging and components; temperature-assured packaging; injection molded and extruded containers, spools and parts; retail security packaging, including printed backer cards, thermoformed blisters and heat-sealing equipment; and paper amenities. Prior to the divestiture of the Company’s U.S. display and packaging business on April 4, 2021, this business, which included point-of-purchase displays, fulfillment operations, and contract packaging, was reported in All Other. The following table sets forth net sales, intersegment sales and operating profit for the Company’s reportable segments and All Other. “Segment operating profit” is defined as the segment’s portion of “Operating profit” excluding restructuring and asset impairment charges, acquisition expenses, amortization of acquisition intangibles, changes in last-in, first-out (“LIFO”) inventory reserves, losses from the early extinguishment of debt, interest income and expense, income taxes or certain other items, if any, the exclusion of which the Company believes improves comparability and analysis of the financial performance of the business. General corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and All Other. Effective January 1, 2022, the Company changed its measure of segment operating profit to exclude amortization of acquisition intangibles. Accordingly, the prior year’s segment operating profit has been revised to conform with the current presentation for comparability. SEGMENT FINANCIAL INFORMATION
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Commitments and Contingencies |
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Oct. 02, 2022 | |
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 $1,943 on remediation of the Spartanburg site. At October 2, 2022 and December 31, 2021, the Company's accrual for environmental contingencies related to the Spartanburg site totaled $5,458 and $5,555, respectively. The Company cannot currently estimate its potential liability, damages or range of potential loss, if any, beyond the amounts accrued with respect to this exposure. However, the Company does not believe that the resolution of this matter has a reasonable possibility of having a material adverse effect on the Company's financial statements. Other environmental matters The Company has been named as a potentially responsible party at several other environmentally contaminated sites. All of the sites are also the responsibility of other parties. The potential remediation liabilities are shared with such other parties, and, in most cases, the Company’s share, if any, cannot be reasonably estimated at the current time. However, the Company does not believe that the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company's financial statements. At October 2, 2022 and December 31, 2021, the Company's accrual for these other sites totaled $1,604 and $1,825, respectively. Summary As of October 2, 2022 and December 31, 2021, the Company (and its subsidiaries) had accrued $7,062 and $7,380, respectively, related to environmental contingencies. These accruals are included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets. Other Legal Matters In addition to those matters described above, the Company is subject to other various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters could differ from management’s expectations, the Company does not believe the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s financial statements.
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New Accounting Pronouncements (Policies) |
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Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||
New Accounting Pronouncements | In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04 “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” The amendments in this update 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, and a rollforward of the outstanding obligation as of the end of the annual period. The amendments in this update 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 does not plan to elect early adoption of this update and does not expect this pronouncement to materially affect its consolidated financial statements. In March 2022, the FASB issued ASU 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The amendments in this update eliminate the accounting guidance for troubled debt restructurings while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendments in this update also require that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases. The Company does not expect this pronouncement to materially affect its consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” Under current accounting standards, contract assets and contract liabilities acquired in a business combination are to be recorded at fair value using the ASC 805 measurement principle. ASU 2021-08 requires the acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606: Revenue from Contracts with Customers as if the acquirer had originated the contracts rather than at fair value. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company elected to early adopt ASU 2021-08 on a prospective basis as of January 1, 2022. The election to use practical expedients allowed under ASU 2021-08 will be applied on an acquisition-by-acquisition basis. There was no impact to the Company’s consolidated financial statements as of the adoption date. During the nine-month period ended October 2, 2022, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at October 2, 2022, there are no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements.
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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:
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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 (Tables) |
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Schedule of Preliminary Fair Value Of Assets Acquired And Measurement Period Adjustments | The Company's initial preliminary fair values of the assets acquired and the liabilities assumed in the Metal Packaging acquisition, as well as revised preliminary fair values reflecting adjustments made during the measurement period, are as follows:
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Schedule Of Proforma Supplemental Information | The following table presents the unaudited financial results for Metal Packaging for the three-month period ended October 2, 2022 and from the date of acquisition through October 2, 2022:
The following table presents the Company’s estimated unaudited pro forma consolidated results for the three- and nine-month periods ended October 2, 2022 and October 3, 2021, assuming the acquisition of Metal Packaging had occurred on January 1, 2021. This unaudited pro forma information is presented for informational purposes only and does not purport to represent the results of operations that would have been achieved if the acquisition had been completed at the beginning of 2021, nor is it necessarily indicative of future consolidated results.
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Shareholders' Equity (Tables) |
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Oct. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings (Loss) Per Share | The following table sets forth the computation of basic and diluted earnings/(loss) per share:
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Schedule Of Antidilutive Securities Excluded From Computation Of Earnings Per Share | The average numbers of SARs that were anti-dilutive and, therefore, not included in the computation of diluted earnings per share during the three- and nine-month periods ended October 2, 2022 and October 3, 2021 were as follows (in thousands):
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Restructuring and Asset Impairments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 02, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restructuring and Restructuring-Related Asset Impairment Expenses by Type Incurred and by Reportable Segment | Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented:
The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred:
The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment:
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Summary of Restructuring Accrual Activity | The following table sets forth the activity in the restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets:
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Accumulated Other Comprehensive Loss (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Components of Accumulated Other Comprehensive Loss | The following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the nine-month period ended October 2, 2022 and October 3, 2021:
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Summary of Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss | The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three- and nine-month periods ended October 2, 2022 and October 3, 2021:
(a) See Note 5 for additional details. (b) See Note 11 for additional details.
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Summary of Before and After Tax Amounts for Comprehensive Income (Loss) Components | The following table summarizes the before and after tax amounts for the various components of other comprehensive (loss)/income for the three-month periods ended October 2, 2022 and October 3, 2021:
(a) See Note 5 for additional details. (b) See Note 11 for additional details. (c) See Note 9 for additional details. The following table summarizes the before and after tax amounts for the various components of other comprehensive (loss)/income for the nine-month periods ended October 2, 2022 and October 3, 2021:
(a) See Note 5 for additional details. (b) See Note 11 for additional details. (c) See Note 9 for additional details.
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Goodwill and Other Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Changes in Goodwill | A summary of the changes in goodwill for the nine-month period ended October 2, 2022 is as follows:
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Summary of Other Intangible Assets | A summary of other intangible assets as of October 2, 2022 and December 31, 2021 is as follows:
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Details of the Company's debt at October 2, 2022 and December 31, 2021 are as follows:
On January 21, 2022, the Company completed a registered public offering of green bonds with an aggregate principal amount of $1,200,000. These unsecured notes (the “Notes”) consisted of the following:
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Schedule of Debt Repurchased | Upon expiration of the tender offer on May 25, 2021, the Company repurchased 10.53% of its outstanding 5.750% notes for a total cash cost of $81,961, as shown below:
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Financial Instruments and Derivatives (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Carrying Amounts and Fair Values of Financial Instruments | The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value.
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Summary of Net Positions of Foreign Contracts | The net positions of these contracts at October 2, 2022 were as follows (in thousands):
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Summary of Net Positions of Other Derivatives Contracts | The net currency positions of these non-designated contracts at October 2, 2022, were as follows (in thousands):
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Summary of Location and Fair Values of Derivative Instruments | The following table sets forth the location and fair values of the Company’s derivative instruments at October 2, 2022 and December 31, 2021:
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Summary of Effect of Derivative Instruments on Financial Performance | The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three-month periods ended October 2, 2022 and October 3, 2021, 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:
The following tables set forth the effect of the Company’s derivative instruments on financial performance for the nine months ended October 2, 2022 and October 3, 2021, 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:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Assets and Liabilities Measured on Recurring Basis | The following table sets forth information regarding the Company’s financial assets and financial liabilities, excluding retirement and postretirement plan assets, measured at fair value on a recurring basis:
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Employee Benefit Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Components of Net Periodic Benefit Cost/(Income) | The components of net periodic benefit cost/(income) include the following:
|
Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Balance Sheet Location and Values of Company's Lease Assets and Lease Liabilities | The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at October 2, 2022 and December 31, 2021:
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Summary of Components of Company's Total Lease Costs and Other Lease Related Information | The following table sets forth the components of the Company’s total lease cost for the three- and nine-month periods ended October 2, 2022 and October 3, 2021:
(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. (d) Impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s Consolidated Statements of Income. See Note 5 for more information.
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Schedule of Weighted Average Remaining Lease Terms, Discounts Rates and Other Lease Information | The following table sets forth certain lease-related information for the nine-month periods ended October 2, 2022 and October 3, 2021:
|
Revenue Recognition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Receivables, Contracts Assets and Liabilities from Contracts With Customers | The following tables set forth the effects of contract assets and liabilities from contracts with customers. Contract assets and liabilities are reported in “Other receivables” and “Accrued expenses and other,” respectively, on the Company’s Condensed Consolidated Balance Sheets.
Significant changes in the contract assets and liabilities balances during the nine-month period ended October 2, 2022 and the year ended December 31, 2021 were as follows:
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Summary of Disaggregation of Revenue | The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended October 2, 2022 and October 3, 2021. The tables also include a reconciliation of disaggregated revenue with reportable segments.
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Segment Reporting (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 02, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Financial Information | SEGMENT FINANCIAL INFORMATION
|
Acquisitions and Divestitures - Additional Information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 28, 2022
USD ($)
|
Aug. 31, 2022
USD ($)
acquisition
|
Jan. 26, 2022
USD ($)
manufacturing_plant
|
Sep. 30, 2021
USD ($)
|
Apr. 05, 2021
USD ($)
|
Oct. 02, 2022
USD ($)
|
Jul. 03, 2022
USD ($)
|
Oct. 03, 2021
USD ($)
|
Apr. 04, 2021
USD ($)
employee
facility
|
Oct. 02, 2022
USD ($)
|
Oct. 03, 2021
USD ($)
|
|
Business Acquisition [Line Items] | |||||||||||
Consideration paid, net of cash acquired | $ 1,337,704 | $ 3,155 | |||||||||
Acquisition and divestiture-related costs | $ 2,022 | $ 1,015 | 62,655 | 12,503 | |||||||
Gain/(loss) on divestiture of business | 0 | 2,849 | 0 | $ (2,667) | |||||||
Cost of sales | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquisition and divestiture-related costs | 2,022 | 29,500 | |||||||||
Sold | DisplayAndPackagingReportingUnitMember | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Consideration for disposal of business held for sale | $ 80,000 | ||||||||||
Approximate number of employees (employee) | employee | 450 | ||||||||||
Number of manufacturing and fulfillment facilities | facility | 8 | ||||||||||
Number of sales and design centers | facility | 4 | ||||||||||
Proceeds from the sale of businesses, net | $ 79,704 | 1,971 | |||||||||
Gain/(loss) on divestiture of business | $ (5,516) | ||||||||||
Disposal group, including discontinued operation, consideration, liabilities settled | 786 | 786 | |||||||||
Gain (loss) on the sale of business | $ 2,757 | (2,759) | |||||||||
Sold | Wilson Thermoforming | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Proceeds from the sale of businesses, net | $ 3,528 | ||||||||||
Gain (loss) on the sale of business | $ (92) | ||||||||||
Skjern | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Estimated purchase price | $ 88,000 | ||||||||||
Nordeste | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of acquisitions | acquisition | 2 | ||||||||||
Consideration, net of cash acquired | $ 6,518 | ||||||||||
Cash consideration paid | 3,933 | ||||||||||
Contingent purchase liability | $ 2,585 | ||||||||||
Metal Packaging | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Consideration paid, net of cash acquired | $ 1,348,589 | ||||||||||
Post-closing adjustment, cash settlement proceeds | $ (14,820) | ||||||||||
Joint venture, ownership (percent) | 51.00% | ||||||||||
Number of facilities acquired | manufacturing_plant | 8 | ||||||||||
Goodwill expected tax deductible percentage | 67.00% | ||||||||||
Acquisition and divestiture-related costs | $ 793 | 27,195 | |||||||||
Fair value adjustment to acquisition date inventory | $ 33,155 | ||||||||||
Metal Packaging | Other Receivables | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Post-closing adjustment, other receivables | $ 6,924 | ||||||||||
Ball Corporation | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Joint venture, ownership (percent) | 49.00% |
Acquisitions and Divestitures - Preliminary Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
5 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Jul. 03, 2022 |
Oct. 02, 2022 |
Jan. 26, 2022 |
Dec. 31, 2021 |
|||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Goodwill | [1] | $ 1,641,948 | $ 1,324,501 | |||
Measurement Period Adjustments | ||||||
Goodwill | (9,187) | |||||
Metal Packaging | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Trade accounts receivable | 113,850 | $ 113,850 | ||||
Other receivables | 14,569 | 14,569 | ||||
Inventories | 190,626 | 190,070 | ||||
Prepaid expenses | 44,530 | 44,530 | ||||
Property, plant and equipment | 332,133 | 333,496 | ||||
Right of use asset - operating leases | 38,000 | 38,000 | ||||
Other intangible assets | 498,000 | 498,000 | ||||
Goodwill | 356,911 | 366,098 | ||||
Other net tangible assets | 47,873 | 48,069 | ||||
Payable to suppliers | (105,580) | (105,580) | ||||
Accrued expenses and other | (30,182) | (30,671) | ||||
Notes payable and current portion of long-term debt | (46,463) | (46,463) | ||||
Noncurrent operating lease liabilities | (30,448) | (30,448) | ||||
Long-term debt | (39,543) | (39,543) | ||||
Deferred income taxes | (50,507) | (52,312) | ||||
Total purchase price, net of cash acquired | $ 1,333,769 | $ 1,341,665 | ||||
Measurement Period Adjustments | ||||||
Inventories | $ 556 | |||||
Property, plant and equipment | (1,363) | |||||
Goodwill | (9,187) | |||||
Other net tangible assets | (196) | |||||
Accrued expenses and other | 489 | |||||
Deferred income taxes | (1,805) | |||||
Total purchase price, net of cash acquired | $ (7,896) | |||||
|
Acquisitions and Divestitures - Pro Forma and Supplemental Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 8 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Business Acquisition [Line Items] | |||||
Net sales | $ 1,890,216 | $ 1,643,726 | $ 5,624,118 | $ 4,767,306 | |
Net income/(loss) attributable to Sonoco | 123,047 | $ 105,578 | $ 428,287 | $ (215,045) | |
Metal Packaging | |||||
Business Acquisition [Line Items] | |||||
Net sales | 335,468 | $ 798,018 | |||
Net income/(loss) attributable to Sonoco | $ 16,769 | $ 61,216 |
Shareholders' Equity - Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 09, 2022 |
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Numerator: | |||||
Net income/(loss) attributable to Sonoco | $ 122,229 | $ 111,140 | $ 369,234 | $ (150,634) | |
Denominator: | |||||
Basic (in shares) | 98,013 | 98,955 | 97,978 | 100,039 | |
Dilutive effect of stock-based compensation (in shares) | 749 | 470 | 691 | 0 | |
Diluted (in shares) | 98,762 | 99,425 | 98,669 | 100,039 | |
Net income/(loss) attributable to Sonoco per common share: | |||||
Basic (in usd per share) | $ 1.25 | $ 1.12 | $ 3.77 | $ (1.51) | |
Diluted (in usd per share) | 1.24 | 1.12 | 3.74 | (1.51) | |
Cash dividends (in usd per share) | $ 0.49 | $ 0.49 | $ 0.45 | $ 1.43 | $ 1.35 |
Shareholders' Equity - Antidilutive Securities (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Anti-dilutive stock appreciation rights | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock appreciation rights (in shares) | 366 | 0 | 380 | 142 |
Dilutive securities excluded due to reported loss | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock appreciation rights (in shares) | 469 |
Shareholders' Equity - Dilutive Securities Excluded From The Computation Of Diluted Net Loss Per Share (Details) shares in Thousands |
9 Months Ended |
---|---|
Oct. 03, 2021
shares
| |
Dilutive securities excluded due to reported loss | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Dilutive securities excluded due to reported loss (in shares) | 469 |
Shareholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 09, 2022
$ / shares
|
Oct. 18, 2022
$ / shares
|
Sep. 09, 2022
$ / shares
|
Jul. 20, 2022
$ / shares
|
Mar. 31, 2022
USD ($)
partner
|
Jul. 26, 2021
USD ($)
$ / shares
shares
|
Jul. 21, 2021
USD ($)
position
$ / shares
shares
|
May 10, 2021
USD ($)
$ / shares
shares
|
May 06, 2021
USD ($)
shares
|
Oct. 02, 2022
$ / shares
|
Apr. 03, 2022
USD ($)
|
Oct. 03, 2021
$ / shares
|
Oct. 02, 2022
USD ($)
$ / shares
shares
|
Oct. 03, 2021
USD ($)
$ / shares
shares
|
Dec. 31, 2021
USD ($)
|
Apr. 20, 2021
USD ($)
|
Apr. 30, 2015 |
|
Class of Stock [Line Items] | |||||||||||||||||
Number of shares authorized for repurchase | $ 350,000 | ||||||||||||||||
Number of shares available for repurchase | $ 137,972 | ||||||||||||||||
Shares repurchased (in shares) | shares | 0 | ||||||||||||||||
Up-front payment to repurchase shares | $ 3,615 | $ 4,056 | $ 159,654 | ||||||||||||||
Number of shares repurchased (in shares) | shares | 54,000 | ||||||||||||||||
Dividend declared and payable (in usd per share) | $ / shares | $ 0.49 | ||||||||||||||||
Dividends paid (in usd per share) | $ / shares | $ 0.49 | $ 0.49 | $ 0.45 | $ 1.43 | $ 1.35 | ||||||||||||
Payments to noncontrolling interests | $ 14,474 | $ 0 | |||||||||||||||
Purchase of noncontrolling interest | $ 13,196 | ||||||||||||||||
Subsequent Event | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Dividend declared and payable (in usd per share) | $ / shares | $ 0.49 | ||||||||||||||||
Dividends paid (in usd per share) | $ / shares | $ 0.49 | ||||||||||||||||
Graffo Paranaense de Embalagens S/A | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Ownership percentage by parent | 67.00% | ||||||||||||||||
Ownership percentage by noncontrolling owners | 33.00% | ||||||||||||||||
Payments to noncontrolling interests | $ 14,474 | ||||||||||||||||
Number of partners | partner | 3 | ||||||||||||||||
Purchase of noncontrolling interest | 6,116 | ||||||||||||||||
Increase (decrease) in accrued liabilities | $ 1,278 | ||||||||||||||||
Tax Withholding Obligations | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Number of shares repurchased (in shares) | shares | 71,000 | 100,000 | |||||||||||||||
Cost of shares repurchased | $ 4,056 | $ 6,039 | |||||||||||||||
Capital in Excess of Stated Value | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Purchase of noncontrolling interest | $ 7,080 | $ 7,080 | |||||||||||||||
Accelerated Share Repurchase Program | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Up-front payment to repurchase shares | $ 150,000 | ||||||||||||||||
Number of shares repurchased (in shares) | shares | 337,000 | 168,000 | 1,751,000 | ||||||||||||||
Percentage of expected shares to be repurchased (percent) | 80.00% | ||||||||||||||||
Average price (in usd per share) | $ / shares | $ 68.5 | ||||||||||||||||
Number of tranches | position | 2 | ||||||||||||||||
Effective settlement price (in usd per share) | $ / shares | $ 66.45 | $ 66.52 | |||||||||||||||
Shares of notional transactional value | $ 100,000 | $ 50,000 |
Restructuring and Asset Impairments - Restructuring and Restructuring-related Asset Impairment Expenses by Type Incurred and by Reportable Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | $ 20,652 | $ 3,204 | $ 33,262 | $ 4,048 |
Other asset impairments | 0 | 284 | 10,095 | 4,841 |
Restructuring/Asset Impairment Charges | 20,652 | 3,488 | 43,357 | 8,889 |
Consumer Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other asset impairments | 930 | 2,442 | ||
All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other asset impairments | 9,165 | 2,399 | ||
Operating Segments | Consumer Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 4,350 | 2,450 | 8,529 | 3,708 |
Operating Segments | Industrial Paper Packaging | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 7,674 | (1,888) | 10,029 | (4,827) |
Operating Segments | All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 18 | 555 | (399) | 3,075 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 8,610 | 2,087 | 15,103 | 2,092 |
Severance and Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 9,265 | 3,726 | 13,578 | 7,592 |
Asset Impairments/(Gains from Disposal of Assets) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | 3,301 | (1,722) | 4,533 | (8,207) |
Other Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and restructuring-related asset impairment charges | $ 8,086 | $ 1,200 | $ 15,151 | $ 4,663 |
Restructuring and Asset Impairments - Restructuring Accrual Activity (Details) $ in Thousands |
9 Months Ended |
---|---|
Oct. 02, 2022
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2021 | $ 12,790 |
2022 charges | 33,262 |
Cash (payments)/receipts | (19,198) |
Asset writedowns/disposals | (9,284) |
Foreign currency translation | (270) |
Liability at October 2, 2022 | 17,300 |
Severance and Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2021 | 10,917 |
2022 charges | 13,578 |
Cash (payments)/receipts | (9,966) |
Asset writedowns/disposals | 0 |
Foreign currency translation | (229) |
Liability at October 2, 2022 | 14,300 |
Asset Impairments/ Disposal of Assets | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2021 | 0 |
2022 charges | 4,533 |
Cash (payments)/receipts | 4,751 |
Asset writedowns/disposals | (9,284) |
Foreign currency translation | 0 |
Liability at October 2, 2022 | 0 |
Other Costs | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2021 | 1,873 |
2022 charges | 15,151 |
Cash (payments)/receipts | (13,983) |
Asset writedowns/disposals | 0 |
Foreign currency translation | (41) |
Liability at October 2, 2022 | $ 3,000 |
Restructuring and Asset Impairments - Additional Information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jul. 01, 2022
USD ($)
|
Oct. 02, 2022
USD ($)
employee
|
Oct. 03, 2021
USD ($)
|
Oct. 02, 2022
USD ($)
employee
|
Oct. 03, 2021
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | |||||
Future additional charges expected to be recognized | $ 8,200 | $ 8,200 | |||
Other asset impairments | $ 0 | $ 284 | 10,095 | $ 4,841 | |
Impact of new accounting pronouncements | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other asset impairments | $ 3,747 | ||||
All Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other asset impairments | 9,165 | 2,399 | |||
Consumer Packaging | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other asset impairments | $ 930 | $ 2,442 | |||
Organizational effectiveness efforts | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of eliminated positions (position) | employee | 180 | 180 |
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning Balance | $ 1,936,391 | $ 1,822,433 | $ 1,849,541 | [1] | $ 1,910,528 | |||
Other comprehensive (loss)/income | (82,363) | (35,118) | (153,248) | 377,507 | ||||
Ending Balance | 1,935,081 | [1] | 1,860,732 | 1,935,081 | [1] | 1,860,732 | ||
Foreign Currency Items | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning Balance | (269,076) | (194,024) | ||||||
Other comprehensive (loss)/income before reclassifications | (155,179) | (57,261) | ||||||
Other comprehensive (loss)/income | (151,432) | (57,261) | ||||||
Ending Balance | (420,508) | (251,285) | (420,508) | (251,285) | ||||
Foreign Currency Items | Fixed Assets | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Amounts reclassified from accumulated other comprehensive loss net of tax | 0 | 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 | 3,747 | 0 | ||||||
Defined Benefit Pension Items | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning Balance | (91,397) | (562,747) | ||||||
Other comprehensive (loss)/income before reclassifications | (3,948) | 11,302 | ||||||
Other comprehensive (loss)/income | (876) | 429,823 | ||||||
Ending Balance | (92,273) | (132,924) | (92,273) | (132,924) | ||||
Defined Benefit Pension Items | Fixed Assets | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Amounts reclassified from accumulated other comprehensive loss net of tax | 0 | 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 | 3,072 | 418,521 | ||||||
Cash Flow Hedges | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning Balance | 1,048 | (71) | ||||||
Other comprehensive (loss)/income before reclassifications | 4,136 | 7,804 | ||||||
Other comprehensive (loss)/income | (792) | 5,370 | ||||||
Ending Balance | 256 | 5,299 | 256 | 5,299 | ||||
Cash Flow Hedges | Fixed Assets | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Amounts reclassified from accumulated other comprehensive loss net of tax | (642) | (31) | ||||||
Cash Flow Hedges | Net Income | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Amounts reclassified from accumulated other comprehensive loss net of tax | (4,286) | (2,403) | ||||||
Accumulated Other Comprehensive Loss | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning Balance | (430,677) | (344,456) | (359,425) | (756,842) | ||||
Other comprehensive (loss)/income before reclassifications | (154,991) | (38,155) | ||||||
Other comprehensive (loss)/income | (153,100) | 377,932 | ||||||
Ending Balance | $ (512,525) | $ (378,910) | (512,525) | (378,910) | ||||
Accumulated Other Comprehensive Loss | Fixed Assets | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Amounts reclassified from accumulated other comprehensive loss net of tax | (642) | (31) | ||||||
Accumulated Other Comprehensive Loss | Net Income | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Amounts reclassified from accumulated other comprehensive loss net of tax | $ 2,533 | $ 416,118 | ||||||
|
Accumulated Other Comprehensive Loss - Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Oct. 02, 2022 |
Jul. 03, 2022 |
Apr. 03, 2022 |
Oct. 03, 2021 |
Jul. 04, 2021 |
Apr. 04, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Restructuring/Asset Impairment Charges | $ (20,652) | $ (3,488) | $ (43,357) | $ (8,889) | ||||
Net sales | 1,890,216 | 1,415,193 | 5,574,530 | 4,151,251 | ||||
Cost of sales | (1,523,070) | (1,157,462) | (4,448,818) | (3,352,966) | ||||
(Loss)/Income before income taxes | 155,127 | 111,768 | 476,437 | (247,634) | ||||
Provision for/(Benefit from) income taxes | (36,824) | (2,564) | (116,712) | 91,542 | ||||
Net income/(loss) | 122,502 | $ 131,767 | $ 115,607 | 111,555 | $ (334,239) | $ 72,293 | 369,876 | (150,391) |
Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net sales | 559 | 937 | 2,425 | 2,766 | ||||
Cost of sales | 2,001 | 1,340 | 3,232 | 497 | ||||
Net income/(loss) | 1,171 | 391 | (2,533) | (416,118) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Items | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Restructuring/Asset Impairment Charges | 0 | 0 | (3,747) | 0 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
(Loss)/Income before income taxes | 2,560 | 2,277 | 5,657 | 3,263 | ||||
Provision for/(Benefit from) income taxes | (473) | (607) | (1,371) | (860) | ||||
Net income/(loss) | 2,087 | 1,670 | 4,286 | 2,403 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Pension Items | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
(Loss)/Income before income taxes | (1,229) | (1,661) | (4,085) | (562,625) | ||||
Provision for/(Benefit from) income taxes | 313 | 382 | 1,013 | 144,104 | ||||
Net income/(loss) | (916) | (1,279) | (3,072) | (418,521) | ||||
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 | (21) | (430) | (547,652) | ||||
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 | (1,229) | (1,640) | (3,655) | (14,973) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Foreign exchange contracts | Cash Flow Hedges | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net sales | 559 | 937 | 2,425 | 2,766 | ||||
Cost of sales | (433) | (711) | (2,139) | (2,129) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Commodity contracts | Cash Flow Hedges | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net sales | 0 | 0 | 0 | 0 | ||||
Cost of sales | $ 2,434 | $ 2,051 | $ 5,371 | $ 2,626 |
Accumulated Other Comprehensive Loss - Before and After Tax Amounts for Comprehensive Income (Loss) Components (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Oct. 02, 2022 |
Jul. 03, 2022 |
Apr. 03, 2022 |
Oct. 03, 2021 |
Jul. 04, 2021 |
Apr. 04, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other comprehensive loss | $ (82,363) | $ (74,332) | $ 3,447 | $ (35,118) | $ 438,823 | $ (26,198) | ||
Foreign Currency Items | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other comprehensive (loss)/income before reclassifications before tax | (81,457) | (37,077) | $ (155,179) | $ (57,261) | ||||
Other comprehensive (loss)/income before reclassifications, tax | 0 | 0 | 0 | 0 | ||||
Other comprehensive (loss)/income before reclassifications, net of tax | (81,457) | (37,077) | (155,179) | (57,261) | ||||
Other comprehensive income/(loss) before tax | (81,457) | (37,077) | (151,432) | (57,261) | ||||
Other comprehensive income/(loss), tax | 0 | 0 | 0 | 0 | ||||
Other comprehensive loss | (81,457) | (37,077) | (151,432) | (57,261) | ||||
Foreign Currency Items | Net Income | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 0 | 0 | 3,747 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income/(loss), tax | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 0 | 0 | 3,747 | 0 | ||||
Defined benefit pension items | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other comprehensive (loss)/income before reclassifications before tax | (74) | 559 | (5,257) | 14,923 | ||||
Other comprehensive (loss)/income before reclassifications, tax | 19 | (145) | 1,309 | (3,621) | ||||
Other comprehensive (loss)/income before reclassifications, net of tax | (55) | 414 | (3,948) | 11,302 | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 4,085 | 562,625 | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss), tax | (1,013) | (144,104) | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 3,072 | 418,521 | ||||||
Other comprehensive income/(loss) before tax | 1,155 | 2,220 | (1,172) | 577,548 | ||||
Other comprehensive income/(loss), tax | (294) | (527) | 296 | (147,725) | ||||
Other comprehensive loss | 861 | 1,693 | (876) | 429,823 | ||||
Defined benefit pension items | Net Income | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 1,229 | 1,661 | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss), tax | (313) | (382) | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 916 | 1,279 | ||||||
Cash Flow Hedges | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other comprehensive (loss)/income before reclassifications before tax | 1,336 | 3,525 | 5,607 | 10,536 | ||||
Other comprehensive (loss)/income before reclassifications, tax | (247) | (940) | (1,471) | (2,732) | ||||
Other comprehensive (loss)/income before reclassifications, net of tax | 1,089 | 2,585 | 4,136 | 7,804 | ||||
Other comprehensive income/(loss) before tax | (1,536) | 1,268 | (914) | 7,231 | ||||
Other comprehensive income/(loss), tax | 284 | (338) | 122 | (1,861) | ||||
Other comprehensive loss | (1,252) | 930 | (792) | 5,370 | ||||
Cash Flow Hedges | Fixed Assets | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | (312) | 20 | (864) | (42) | ||||
Amounts reclassified from accumulated other comprehensive income/(loss), tax | 58 | (5) | 222 | 11 | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | (254) | 15 | (642) | (31) | ||||
Cash Flow Hedges | Net Income | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | (2,560) | (2,277) | (5,657) | (3,263) | ||||
Amounts reclassified from accumulated other comprehensive income/(loss), tax | 473 | 607 | 1,371 | 860 | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | (2,087) | (1,670) | (4,286) | (2,403) | ||||
Accumulated Other Comprehensive Loss | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other comprehensive income/(loss) before tax | (81,838) | (33,589) | (153,518) | 527,518 | ||||
Other comprehensive income/(loss), tax | (10) | (865) | 418 | (149,586) | ||||
Other comprehensive loss | $ (81,848) | $ (73,808) | $ 2,556 | $ (34,454) | $ 438,064 | $ (25,678) | $ (153,100) | $ 377,932 |
Goodwill and Other Intangible Assets - Changes in Goodwill by Segment (Details) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Oct. 02, 2022
USD ($)
| ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | $ 1,324,501 | [1] | ||
2022 Acquisitions | 371,512 | |||
Foreign currency translation | (44,878) | |||
Measurement period adjustments | (9,187) | |||
Goodwill, ending balance | 1,641,948 | [1] | ||
Consumer Packaging | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 572,416 | |||
2022 Acquisitions | 366,098 | |||
Foreign currency translation | (22,001) | |||
Measurement period adjustments | (9,187) | |||
Goodwill, ending balance | 907,326 | |||
Industrial Paper Packaging | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 367,780 | |||
2022 Acquisitions | 5,414 | |||
Foreign currency translation | (17,584) | |||
Measurement period adjustments | 0 | |||
Goodwill, ending balance | 355,610 | |||
All Other | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 384,305 | |||
2022 Acquisitions | 0 | |||
Foreign currency translation | (5,293) | |||
Measurement period adjustments | 0 | |||
Goodwill, ending balance | $ 379,012 | |||
|
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jan. 26, 2022 |
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
Dec. 31, 2021 |
|||
Goodwill [Line Items] | ||||||||
Goodwill, impairment loss | $ 0 | |||||||
Goodwill | [1] | $ 1,641,948,000 | 1,641,948,000 | $ 1,324,501,000 | ||||
Indefinite-lived intangible assets | 0 | 0 | ||||||
Aggregate amortization expense | 20,690,000 | $ 12,257,000 | 60,361,000 | $ 37,117,000 | ||||
Amortization expense on other intangible assets in 2022 | 80,800,000 | 80,800,000 | ||||||
Amortization expense on other intangible assets in 2023 | 79,100,000 | 79,100,000 | ||||||
Amortization expense on other intangible assets in 2024 | 71,700,000 | 71,700,000 | ||||||
Amortization expense on other intangible assets in 2025 | 61,100,000 | 61,100,000 | ||||||
Amortization expense on other intangible assets in 2026 | 57,800,000 | 57,800,000 | ||||||
Metal Packaging | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | $ 366,098,000 | $ 356,911,000 | $ 356,911,000 | |||||
Customer Lists And Patents | Metal Packaging | ||||||||
Goodwill [Line Items] | ||||||||
Intangible assets acquired | $ 498,000,000 | |||||||
Useful lives of intangible asset | 13 years 7 months 6 days | |||||||
Other | Minimum | ||||||||
Goodwill [Line Items] | ||||||||
Useful lives of intangible asset | 3 years | |||||||
Other | Maximum | ||||||||
Goodwill [Line Items] | ||||||||
Useful lives of intangible asset | 40 years | |||||||
Plastics - Healthcare | ||||||||
Goodwill [Line Items] | ||||||||
Excess of fair value of reporting unit over carrying value (percent) | 18.00% | 18.00% | ||||||
Goodwill | $ 60,710,000 | $ 60,710,000 | ||||||
Plastics - Healthcare | Discount Rate | ||||||||
Goodwill [Line Items] | ||||||||
Discount rate (percent) | 9.80% | 9.80% | ||||||
Change necessary in order for estimated fair value to fall below carrying value (percent) | 11.00% | 11.00% | ||||||
Protexic | ||||||||
Goodwill [Line Items] | ||||||||
Excess of fair value of reporting unit over carrying value (percent) | 18.30% | 18.30% | ||||||
Goodwill | $ 29,051,000 | $ 29,051,000 | ||||||
Protexic | Discount Rate | ||||||||
Goodwill [Line Items] | ||||||||
Discount rate (percent) | 9.50% | 9.50% | ||||||
Change necessary in order for estimated fair value to fall below carrying value (percent) | 11.50% | 11.50% | ||||||
|
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands |
Oct. 02, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||||
Total Other Intangible Assets, gross | $ 1,161,634 | $ 679,206 | ||
Total Accumulated Amortization | (451,911) | (401,063) | ||
Other Intangible Assets, net | [1] | 709,723 | 278,143 | |
Patents | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total Other Intangible Assets, gross | 29,296 | 29,315 | ||
Total Accumulated Amortization | (17,497) | (16,275) | ||
Customer lists | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total Other Intangible Assets, gross | 1,040,346 | 592,195 | ||
Total Accumulated Amortization | (392,932) | (347,274) | ||
Trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total Other Intangible Assets, gross | 31,641 | 32,043 | ||
Total Accumulated Amortization | (15,397) | (14,106) | ||
Proprietary technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total Other Intangible Assets, gross | 57,608 | 22,846 | ||
Total Accumulated Amortization | (24,038) | (21,394) | ||
Other | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total Other Intangible Assets, gross | 2,743 | 2,807 | ||
Total Accumulated Amortization | $ (2,047) | $ (2,014) | ||
|
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands |
Oct. 02, 2022 |
Dec. 31, 2021 |
Apr. 28, 2021 |
---|---|---|---|
Line of Credit Facility [Line Items] | |||
Finance lease obligations | $ 103,027 | $ 60,282 | |
Total debt | 3,140,030 | 1,610,663 | |
Less current portion and short-term notes | 416,929 | 411,557 | |
Long-term debt | 2,723,101 | 1,199,106 | |
Commercial paper | |||
Line of Credit Facility [Line Items] | |||
Debt | 285,000 | 349,000 | |
Syndicated term loan due February 2025 | |||
Line of Credit Facility [Line Items] | |||
Debt | $ 299,602 | 0 | |
1.800% notes due February 2025 | |||
Line of Credit Facility [Line Items] | |||
Interest rate (percent) | 1.80% | ||
Debt | $ 398,168 | 0 | |
2.250% notes due February 2027 | |||
Line of Credit Facility [Line Items] | |||
Interest rate (percent) | 2.25% | ||
Debt | $ 297,780 | 0 | |
2.850% notes due February 2032 | |||
Line of Credit Facility [Line Items] | |||
Interest rate (percent) | 2.85% | ||
Debt | $ 495,132 | 0 | |
3.125% notes due May 2030 | |||
Line of Credit Facility [Line Items] | |||
Interest rate (percent) | 3.125% | ||
Debt | $ 595,771 | 595,342 | |
5.750% notes due November 2040 | |||
Line of Credit Facility [Line Items] | |||
Interest rate (percent) | 5.75% | 5.75% | |
Debt | $ 536,206 | 536,182 | $ 600,000 |
Other foreign denominated debt | |||
Line of Credit Facility [Line Items] | |||
Debt | 32,478 | 55,432 | |
Other debt | |||
Line of Credit Facility [Line Items] | |||
Debt | $ 96,866 | $ 14,425 |
Debt - Debt Instruments (Details) - Unsecured Debt |
Jan. 21, 2022
USD ($)
|
---|---|
Line of Credit Facility [Line Items] | |
Principal Amount | $ 1,200,000,000 |
Issuance Costs and Discounts | (10,141,000) |
Net Proceeds | 1,189,859,000 |
2025 Notes | |
Line of Credit Facility [Line Items] | |
Principal Amount | 400,000,000 |
Issuance Costs and Discounts | (2,356,000) |
Net Proceeds | $ 397,644,000 |
Interest rate (percent) | 1.80% |
2027 Notes | |
Line of Credit Facility [Line Items] | |
Principal Amount | $ 300,000,000 |
Issuance Costs and Discounts | (2,565,000) |
Net Proceeds | $ 297,435,000 |
Interest rate (percent) | 2.25% |
2032 Notes | |
Line of Credit Facility [Line Items] | |
Principal Amount | $ 500,000,000 |
Issuance Costs and Discounts | (5,220,000) |
Net Proceeds | $ 494,780,000 |
Interest rate (percent) | 2.85% |
Debt - Additional Information (Details) |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 21, 2022
USD ($)
bank
|
May 25, 2021
USD ($)
|
May 21, 2021
USD ($)
|
May 13, 2021
USD ($)
|
Oct. 02, 2022
USD ($)
|
Oct. 03, 2021
USD ($)
|
Oct. 02, 2022
USD ($)
|
Oct. 03, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
Apr. 28, 2021
USD ($)
|
Apr. 07, 2021
contract
|
|
Line of Credit Facility [Line Items] | |||||||||||
Loss from the early extinguishment of debt | $ 0 | $ 0 | $ 0 | $ (20,184,000) | |||||||
Reverse Treasury Lock Contract | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Net purchase/(sell) position of derivatives | $ 100,000,000 | ||||||||||
Gain (loss) on derivative | $ 1,356,000 | ||||||||||
Cross-currency swap | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Gain (loss) on derivative | $ 4,387,000 | ||||||||||
Metal Packaging | LIBOR | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis points (percent) | 1.225% | ||||||||||
Eight Banks Syndicate | Metal Packaging | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Number of banks syndicated | bank | 8 | ||||||||||
5.750% notes due November 2040 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Amount offered to be repurchased | 300,000,000 | ||||||||||
Debt | $ 536,206,000 | $ 536,206,000 | $ 536,182,000 | $ 600,000,000 | |||||||
Interest rate (percent) | 5.75% | 5.75% | 5.75% | ||||||||
Portion of outstanding debt repurchased (percent) | 10.53% | ||||||||||
Cash cost of debt repurchased | $ 81,961,000 | ||||||||||
Non-cash write-offs, net | 73,000 | ||||||||||
Loss from the early extinguishment of debt | $ 20,184,000 | ||||||||||
1.00% Euro loan due May 2021 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt principal | 150,000,000 | ||||||||||
Debt | $ 177,780,000 | ||||||||||
Interest rate (percent) | 1.00% | ||||||||||
Number of forward contracts | contract | 2 | ||||||||||
Unsecured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt principal | $ 1,200,000,000 | ||||||||||
Debt | 150,000,000 | ||||||||||
Unsecured Debt | 2027 Notes | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt principal | $ 300,000,000 | ||||||||||
Debt term | 3 years | ||||||||||
Interest rate (percent) | 2.25% |
Debt - Schedule of Debt Repurchased (Details) - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
May 25, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
Apr. 28, 2021 |
|
Line of Credit Facility [Line Items] | ||||
Premium and Other Amounts Paid | $ 0 | $ 20,111 | ||
5.750% notes due November 2040 | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate (percent) | 5.75% | 5.75% | ||
Principal Amount Tendered | $ 63,206 | |||
Premium and Other Amounts Paid | 18,755 | |||
Total Cash Paid | $ 81,961 |
Financial Instruments and Derivatives - Carrying Amount and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Oct. 02, 2022 |
Dec. 31, 2021 |
---|---|---|
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net of current portion | $ 2,723,101 | $ 1,199,106 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net of current portion | $ 2,444,965 | $ 1,434,711 |
Financial Instruments and Derivatives - Additional Information (Details) |
9 Months Ended | |||
---|---|---|---|---|
Jan. 11, 2022
USD ($)
|
Oct. 02, 2022
USD ($)
MMBTU
|
Jan. 21, 2022
USD ($)
bank
|
Dec. 31, 2021
USD ($)
|
|
Derivative [Line Items] | ||||
Derivative instrument, number of counter-parties | bank | 2 | |||
Gain on the settlement recognized | $ 5,201,000 | |||
Total fair value of other derivatives not designated as hedging instruments | $ 2,369,000 | $ 92,000 | ||
Unsecured Debt | ||||
Derivative [Line Items] | ||||
Debt principal | $ 1,200,000,000 | |||
Debt | $ 150,000,000 | |||
2032 Notes | Unsecured Debt | ||||
Derivative [Line Items] | ||||
Interest rate (percent) | 2.85% | |||
Debt principal | $ 500,000,000 | |||
Cash Flow Hedging | Derivatives Designated as Hedging Instruments | ||||
Derivative [Line Items] | ||||
Fair value of commodity cash flow hedges, gain (loss) | 1,892,000 | 1,491,000 | ||
Commodity gain (loss) expected to be reclassified to the income statement during the next 12 months | 1,881,000 | |||
Fair value of foreign currency cash flow hedges, gain (loss) | (36,000) | 336,000 | ||
Foreign currency gain (loss) expected to be reclassified to the income statement during the next 12 months | $ (36,000) | |||
Natural Gas Swaps | Derivatives Designated as Hedging Instruments | ||||
Derivative [Line Items] | ||||
Approximate amount of commodity covered by swap contracts outstanding (in MMBTUs) | MMBTU | 8,200,000 | |||
Anticipated usage percentage covered by a swap contract for the next fiscal year (percent) | 69.00% | |||
Anticipated usage percentage covered by a swap contract for year two (percent) | 17.00% | |||
Anticipated usage percentage covered by a swap contract for the remainder of the current year (percent) | 47.00% | |||
Natural Gas Swaps | Cash Flow Hedging | Derivatives Designated as Hedging Instruments | ||||
Derivative [Line Items] | ||||
Approximate amount of commodity covered by swap contracts outstanding (in MMBTUs) | MMBTU | 600,000 | |||
Anticipated usage percentage covered by a swap contract for the current fiscal year (percent) | 24.00% | |||
Anticipated usage percentage covered by a swap contract for the next fiscal year (percent) | 1.00% | |||
Anticipated usage percentage covered by a swap contract for year two (percent) | 1.00% | |||
Forward contracts | Cash Flow Hedging | Derivatives Designated as Hedging Instruments | ||||
Derivative [Line Items] | ||||
Fair value of foreign currency cash flow hedges, gain (loss) | $ (1,476,000) | (457,000) | ||
Foreign currency gain (loss) expected to be reclassified to the income statement during the next 12 months | (1,476,000) | |||
Foreign currency gain (loss) reclassified to the income statement | $ (864,000) | |||
Interest rate lock contract | ||||
Derivative [Line Items] | ||||
Derivatives | $ (550,000) |
Financial Instruments and Derivatives - Net Positions of Foreign Contracts (Details) - Oct. 02, 2022 ₺ in Thousands, € in Thousands, £ in Thousands, zł in Thousands, Kč in Thousands, $ in Thousands, $ in Thousands, $ in Thousands |
COP ($) |
MXN ($) |
PLN (zł) |
CZK (Kč) |
EUR (€) |
TRY (₺) |
CAD ($) |
GBP (£) |
---|---|---|---|---|---|---|---|---|
Cash Flow Hedging | Derivatives Designated as Hedging Instruments | Purchase | ||||||||
Derivative [Line Items] | ||||||||
Net purchase/(sell) position of derivatives | $ 7,354,331 | $ 123,095 | zł 22,382 | Kč 16,675 | € 9,989 | ₺ 5,086 | $ 3,798 | £ 819 |
Financial Instruments and Derivatives - Net Positions of Foreign Contracts Non-Designated Derivatives (Details) - Oct. 02, 2022 - Derivatives Not Designated as Hedging Instruments ₺ in Thousands, ฿ in Thousands, Rp in Thousands, $ in Thousands, $ in Thousands, $ in Thousands |
COP ($) |
MXN ($) |
TRY (₺) |
CAD ($) |
IDR (Rp) |
THB (฿) |
---|---|---|---|---|---|---|
Purchase | ||||||
Derivative [Line Items] | ||||||
Net purchase/(sell) position of derivatives | $ 24,748,486 | $ 419,703 | ₺ 44,125 | $ 9,568 | Rp 8,083,663 | |
Sell | ||||||
Derivative [Line Items] | ||||||
Net purchase/(sell) position of derivatives | ฿ (11,143) |
Financial Instruments and Derivatives - Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands |
Oct. 02, 2022 |
Dec. 31, 2021 |
---|---|---|
Derivatives Designated as Hedging Instruments | Commodity contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 1,905 | $ 1,599 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 23 | 0 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (25) | (108) |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (11) | 0 |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 3,098 | 848 |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (4,610) | (969) |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 5,069 | 1,815 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 689 | 0 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (2,497) | (1,132) |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (812) | 0 |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 237 | 135 |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (317) | (176) |
Derivatives Not Designated as Hedging Instruments | Interest rate lock contract | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 0 | $ (550) |
Financial Instruments and Derivatives - Effect of Derivative Instruments on Financial Performance (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | $ (290) | $ (407) | $ (202) | $ 156 |
Foreign exchange contracts | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized | (484) | (675) | (283) | (906) |
Foreign exchange contracts | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | 559 | 937 | 2,425 | 2,766 |
Foreign exchange contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | (433) | (711) | (2,139) | (2,129) |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | 1,626 | 4,200 | 5,809 | 10,801 |
Commodity contracts | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized | 2,574 | 2,861 | 10,072 | 3,295 |
Commodity contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | $ 2,434 | $ 2,051 | $ 5,371 | $ 2,626 |
Financial Instruments and Derivatives - Reclassification of Gains and Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | $ 1,890,216 | $ 1,415,193 | $ 5,574,530 | $ 4,151,251 |
Cost of sales | (1,523,070) | (1,157,462) | (4,448,818) | (3,352,966) |
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | 559 | 937 | 2,425 | 2,766 |
Cost of sales | 2,001 | 1,340 | 3,232 | 497 |
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | Cash Flow Hedges | Foreign exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | 559 | 937 | 2,425 | 2,766 |
Cost of sales | (433) | (711) | (2,139) | (2,129) |
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | Cash Flow Hedges | Commodity contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Cost of sales | $ 2,434 | $ 2,051 | $ 5,371 | $ 2,626 |
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) |
Oct. 02, 2022 |
Dec. 31, 2021 |
---|---|---|
Interest rate lock contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ (550,000) | |
Recurring basis | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ 1,892,000 | 1,491,000 |
Recurring basis | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (1,512,000) | (121,000) |
Recurring basis | Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 2,449,000 | 683,000 |
Recurring basis | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (80,000) | (41,000) |
Recurring basis | Derivatives Not Designated as Hedging Instruments | Interest rate lock contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (550,000) | |
Recurring basis | Assets measured at NAV | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Recurring basis | Assets measured at NAV | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Recurring basis | Assets measured at NAV | Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Recurring basis | Assets measured at NAV | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Recurring basis | Assets measured at NAV | Derivatives Not Designated as Hedging Instruments | Interest rate lock contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | |
Recurring basis | Level 1 | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Recurring basis | Level 1 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Recurring basis | Level 1 | Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Recurring basis | Level 1 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Recurring basis | Level 1 | Derivatives Not Designated as Hedging Instruments | Interest rate lock contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | |
Recurring basis | Level 2 | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 1,892,000 | 1,491,000 |
Recurring basis | Level 2 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (1,512,000) | (121,000) |
Recurring basis | Level 2 | Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 2,449,000 | 683,000 |
Recurring basis | Level 2 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (80,000) | (41,000) |
Recurring basis | Level 2 | Derivatives Not Designated as Hedging Instruments | Interest rate lock contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (550,000) | |
Recurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | |
Recurring basis | Level 3 | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Recurring basis | Level 3 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Recurring basis | Level 3 | Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Recurring basis | Level 3 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ 0 | 0 |
Recurring basis | Level 3 | Derivatives Not Designated as Hedging Instruments | Interest rate lock contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ 0 |
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Retirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 796 | $ 968 | $ 2,459 | $ 2,949 |
Interest cost | 2,593 | 2,287 | 7,974 | 22,051 |
Expected return on plan assets | (2,527) | (3,361) | (7,670) | (21,672) |
Amortization of prior service cost | 220 | 226 | 673 | 687 |
Amortization of net actuarial loss | 1,179 | 1,600 | 3,495 | 14,849 |
Effect of settlement loss | 0 | 21 | 430 | 547,652 |
Net periodic benefit cost | 2,261 | 1,741 | 7,361 | 566,516 |
Retiree Health and Life Insurance Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 80 | 93 | 241 | 282 |
Interest cost | 64 | 49 | 194 | 149 |
Expected return on plan assets | (110) | (111) | (332) | (335) |
Amortization of net actuarial loss | (170) | (186) | (513) | (563) |
Net periodic benefit cost | $ (136) | $ (155) | $ (410) | $ (467) |
Employee Benefit Plans - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jan. 01, 2022 |
Dec. 31, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
Jul. 04, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Defined Benefit Plan Disclosure [Line Items] | |||||||
Contributions | $ 11,600,000 | $ 142,615,000 | |||||
Expected contributions for remainder of fiscal year | $ 4,100,000 | $ 4,100,000 | |||||
Inactive Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Contributions | $ 133,000,000 | ||||||
Sonoco Savings Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Contribution percentage minimum (percent) | 1.00% | ||||||
Contribution percentage maximum (percent) | 100.00% | ||||||
Defined contribution plan, employer matching contribution (percent) | 100.00% | 50.00% | |||||
Employer matching contribution, percent of employees' gross pay (percent) | 6.00% | 4.00% | |||||
Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement losses recognized | 0 | $ 21,000 | $ 430,000 | 547,652,000 | |||
Pension Plan | Sonoco Pension Plan for Inactive Participants | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement losses recognized | 430,000 | 361,000 | |||||
Non-cash settlement charges expected to be incurred next year | $ 547,291,000 | ||||||
Pension Plan | Sonoco Retirement Contribution | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Contributions | 21,948,000 | 22,665,000 | |||||
Expected contributions for remainder of fiscal year | $ 0 | $ 0 | |||||
Recognized expense related to the plan | $ 5,456,000 | $ 17,290,000 | |||||
Pension Plan | Sonoco Retirement Contribution | United States | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer matching contribution, percent of employees' gross pay (percent) | 4.00% | ||||||
Employer matching contribution, percent of employees' gross pay in excess of social security (percent) | 4.00% |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 23.70% | 2.30% | 24.50% | 37.00% |
Increase of uncertain tax benefits | $ 1,614 | |||
Possible decrease in reserve for unrecognized tax benefits | $ 200 | $ 200 |
Leases - Additional Information (Details) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Oct. 02, 2022
USD ($)
option
|
Jan. 26, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Lessee, Lease, Description [Line Items] | |||
Number of renewal options | option | 1 | ||
Lease term | 10 years | ||
Finance lease obligations | $ 103,027 | $ 60,282 | |
Metal Packaging | |||
Lessee, Lease, Description [Line Items] | |||
Lease liabilities | $ 33,910 | ||
Weighted average remaining lease term (years) - operating leases | 11 years | ||
Weighted average discount rate - operating leases (percent) | 2.80% | ||
Finance lease obligations | $ 46,687 | ||
Weighted average remaining lease term (years) - finance leases | 3 years 9 months 18 days | ||
Weighted average discount rate - finance leases (percent) | 7.50% | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease renewal terms | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease renewal terms | 5 years |
Leases - Balance Sheet Location and Values of Lease Assets and Lease Liabilities (Details) - USD ($) $ in Thousands |
Oct. 02, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Leases [Abstract] | ||||
Operating lease assets | [1] | $ 296,838 | $ 268,390 | |
Finance lease assets | 103,540 | 55,826 | ||
Total lease assets | 400,378 | 324,216 | ||
Current operating lease liabilities | 49,606 | 45,305 | ||
Current finance lease liabilities | 16,115 | 6,952 | ||
Total current lease liabilities | 65,721 | 52,257 | ||
Noncurrent operating lease liabilities | [1] | 253,466 | 234,167 | |
Noncurrent finance lease liabilities | 86,912 | 53,330 | ||
Total noncurrent lease liabilities | 340,378 | 287,497 | ||
Total lease liabilities | $ 406,099 | $ 339,754 | ||
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 | ||
|
Leases - Components of Company's Lease Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 12,863 | $ 11,623 | $ 38,679 | $ 36,720 |
Amortization of lease asset | 3,133 | 1,476 | 9,122 | 4,133 |
Interest on lease liabilities | 1,270 | 367 | 3,517 | 997 |
Variable lease cost | 7,894 | 6,796 | 22,416 | 19,569 |
Impairment charges | 61 | 0 | 293 | 0 |
Total lease cost | $ 25,221 | $ 20,262 | $ 74,027 | $ 61,419 |
Leases - Other Lease Related Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used by operating leases | $ 39,405 | $ 38,757 |
Operating cash flows used by finance leases | 3,517 | 997 |
Financing cash flows used by finance leases | 9,181 | 3,375 |
Leased assets obtained in exchange for new operating lease liabilities | 31,048 | 12,230 |
Leased assets obtained in exchange for new finance lease liabilities | 8,224 | 7,071 |
Modification to leased assets for increase in operating lease liabilities | 2,258 | 12,059 |
Modification to leased assets for (decrease)/increase in finance lease liabilities | (642) | 9,586 |
Termination reclasses to decrease operating lease assets | (4,133) | (4,971) |
Termination reclasses to decrease operating lease liabilities | (4,382) | (5,278) |
Termination reclasses to decrease finance lease assets | (1,351) | (33) |
Termination reclasses to decrease finance lease liabilities | $ (87) | $ (40) |
Revenue Recognition - Additional Information (Details) |
9 Months Ended |
---|---|
Oct. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Payment terms | 120 days |
Revenue Recognition - Receivables, Contract Assets and Liabilities from Contracts with Customer (Details) - USD ($) $ in Thousands |
Oct. 02, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|
Revenue from Contract with Customer [Abstract] | |||
Contract Assets | $ 67,254 | $ 51,106 | $ 48,390 |
Contract Liabilities | $ (28,427) | $ (18,993) | $ (16,687) |
Revenue Recognition - Significant Changes in the Contract Assets and Liabilities Balances (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Oct. 02, 2022 |
Dec. 31, 2021 |
|
Contract Asset | ||
Beginning Balance | $ 51,106 | $ 48,390 |
Acquired as part of a business combination | 8,107 | |
Increases due to rights to consideration for customer specific goods produced, but not billed during the period | 67,254 | 51,106 |
Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combinations | (59,213) | (48,390) |
Ending Balance | 67,254 | 51,106 |
Contract Liability | ||
Beginning Balance | (18,993) | (16,687) |
Acquired as part of a business combination | (5,588) | |
Revenue deferred or rebates accrued | (47,303) | (36,527) |
Recognized as revenue | 14,430 | 7,238 |
Rebates paid to customers | 29,027 | 26,983 |
Ending Balance | $ (28,427) | $ (18,993) |
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,890,216 | $ 1,415,193 | $ 5,574,530 | $ 4,151,251 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,407,906 | 923,983 | 4,035,043 | 2,723,911 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 221,280 | 233,172 | 732,252 | 702,861 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 58,625 | 55,799 | 174,294 | 157,166 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 91,152 | 102,218 | 291,177 | 293,827 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 111,253 | 100,021 | 341,764 | 273,486 |
Consumer Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,030,549 | 598,969 | 2,888,630 | 1,779,525 |
Consumer Packaging | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 837,048 | 408,295 | 2,282,559 | 1,219,666 |
Consumer Packaging | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 101,665 | 109,566 | 331,745 | 334,995 |
Consumer Packaging | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 30,154 | 31,612 | 89,342 | 87,948 |
Consumer Packaging | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 25,492 | 20,728 | 74,533 | 60,256 |
Consumer Packaging | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 36,190 | 28,768 | 110,451 | 76,660 |
Industrial Paper Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 661,452 | 635,230 | 2,087,981 | 1,809,159 |
Industrial Paper Packaging | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 405,382 | 370,659 | 1,259,348 | 1,042,249 |
Industrial Paper Packaging | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 99,804 | 99,573 | 334,007 | 300,495 |
Industrial Paper Packaging | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 28,471 | 24,187 | 84,952 | 69,218 |
Industrial Paper Packaging | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 65,475 | 81,097 | 215,896 | 232,657 |
Industrial Paper Packaging | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 62,320 | 59,714 | 193,778 | 164,540 |
All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 198,215 | 180,994 | 597,919 | 562,567 |
All Other | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 165,476 | 145,029 | 493,136 | 461,996 |
All Other | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 19,811 | 24,033 | 66,500 | 67,371 |
All Other | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
All Other | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 185 | 393 | 748 | 914 |
All Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 12,743 | $ 11,539 | $ 37,535 | $ 32,286 |
Segment Reporting - Additional Information (Details) |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Oct. 02, 2022
USD ($)
segment
|
Jan. 26, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
||||
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 2 | |||||
Total assets | $ 6,975,646,000 | [1] | $ 5,073,235,000 | |||
Consumer Packaging | Metal Packaging | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | $ 1,661,573 | |||||
|
Segment Reporting - Segment Financial Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2022 |
Oct. 03, 2021 |
Oct. 02, 2022 |
Oct. 03, 2021 |
|
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,890,216 | $ 1,415,193 | $ 5,574,530 | $ 4,151,251 |
Operating profit | 181,942 | 126,512 | 548,480 | 382,112 |
Restructuring/Asset impairment charges | (20,652) | (3,488) | (43,357) | (8,889) |
Amortization of acquisition intangibles | (20,690) | (12,257) | (60,361) | (37,117) |
Other non-base (charges)/income, net | (1,807) | 7,570 | (83,838) | 294 |
Consumer Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,030,549 | 598,969 | 2,888,630 | 1,779,525 |
Industrial Paper Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 661,452 | 635,230 | 2,087,981 | 1,809,159 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 198,215 | 180,994 | 597,919 | 562,567 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | 225,091 | 134,687 | 736,036 | 427,824 |
Operating Segments | Consumer Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,030,549 | 598,969 | 2,888,630 | 1,779,525 |
Operating profit | 127,859 | 66,341 | 440,889 | 212,997 |
Operating Segments | Industrial Paper Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 661,452 | 635,230 | 2,087,981 | 1,809,159 |
Operating profit | 81,859 | 55,451 | 248,721 | 167,568 |
Operating Segments | All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 198,215 | 180,994 | 597,919 | 562,567 |
Operating profit | 15,373 | 12,895 | 46,426 | 47,259 |
Intersegment Sales | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 38,131 | 31,901 | 114,016 | 94,514 |
Intersegment Sales | Consumer Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,663 | 1,608 | 5,189 | 4,460 |
Intersegment Sales | Industrial Paper Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 33,936 | 27,975 | 101,072 | 82,571 |
Intersegment Sales | All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,532 | $ 2,318 | $ 7,755 | $ 7,483 |
Commitments and Contingencies (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Oct. 02, 2022 |
Dec. 31, 2021 |
|
Site Contingency [Line Items] | ||
Environmental accrual | $ 7,062 | $ 7,380 |
Multiple Sites | ||
Site Contingency [Line Items] | ||
Environmental accrual | 1,604 | 1,825 |
Tegrant Holding Corporation | ||
Site Contingency [Line Items] | ||
Payment towards remediation of sites | 1,943 | |
Tegrant Holding Corporation | Spartanburg, South Carolina Site | ||
Site Contingency [Line Items] | ||
Environmental accrual | $ 5,458 | $ 5,555 |
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