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. |
April 2, 2023 | December 31, 2022* | |||||||||||||
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 | ||||||||||||||
Commitments and Contingencies | ||||||||||||||
Sonoco Shareholders’ Equity | ||||||||||||||
Common stock, no par value | ||||||||||||||
Authorized at April 2, 2023 and December 31, 2022, 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 | |||||||||||||||||
April 2, 2023 | April 3, 2022 | ||||||||||||||||
Net sales | $ | $ | |||||||||||||||
Cost of sales | |||||||||||||||||
Gross profit | |||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||
Restructuring/Asset impairment charges | |||||||||||||||||
Gain on divestiture of business and other assets | |||||||||||||||||
Operating profit | |||||||||||||||||
Non-operating pension costs | |||||||||||||||||
Interest expense | |||||||||||||||||
Interest income | |||||||||||||||||
Income before income taxes | |||||||||||||||||
Provision for income taxes | |||||||||||||||||
Income before equity in earnings of affiliates | |||||||||||||||||
Equity in earnings of affiliates, net of tax | |||||||||||||||||
Net income | |||||||||||||||||
Net loss/(income) attributable to noncontrolling interests | ( | ||||||||||||||||
Net income attributable to Sonoco | $ | $ | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | |||||||||||||||||
Diluted | |||||||||||||||||
Per common share: | |||||||||||||||||
Net income attributable to Sonoco: | |||||||||||||||||
Basic | $ | $ | |||||||||||||||
Diluted | $ | $ |
Three Months Ended | ||||||||||||||
April 2, 2023 | April 3, 2022 | |||||||||||||
Net income | $ | $ | ||||||||||||
Other comprehensive income: | ||||||||||||||
Foreign currency translation adjustments | ||||||||||||||
Changes in defined benefit plans, net of tax | ||||||||||||||
Changes in derivative financial instruments, net of tax | ||||||||||||||
Other comprehensive income | $ | $ | ||||||||||||
Comprehensive income: | ||||||||||||||
Less: Net loss/(income) attributable to noncontrolling interests | ( | |||||||||||||
Less: Other comprehensive income 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, 2021 | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | ||||||||||||||||||||||||||||||||||||||
Translation gain/(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 | ||||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interest | ( | ( | ( | |||||||||||||||||||||||||||||||||||
April 3, 2022 | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Total Equity | Common Shares | Capital in Excess of Stated Value | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | |||||||||||||||||||||||||||||||||
Outstanding | Amount | |||||||||||||||||||||||||||||||||||||
December 31, 2022 | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Net income/(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 | ||||||||||||||||||||||||||||||||||||||
April 2, 2023 | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||
April 2, 2023 | April 3, 2022 | |||||||||||||
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 | ||||||||||||||
Share-based compensation expense | ||||||||||||||
Equity in earnings of affiliates, net | ( | ( | ||||||||||||
Cash dividends from affiliated companies | ||||||||||||||
Net (gain)/loss on disposition of assets | ( | |||||||||||||
Net gain on divestiture of business | ( | |||||||||||||
Pension and postretirement plan expense | ||||||||||||||
Pension and postretirement plan contributions | ( | ( | ||||||||||||
Increase 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 business, net | ||||||||||||||
Proceeds from the sale of assets, net | ||||||||||||||
Other net investing activities | ( | |||||||||||||
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 increase (decrease) in outstanding checks | ( | |||||||||||||
Cash dividends | ( | ( | ||||||||||||
Purchase of noncontrolling interest | ( | |||||||||||||
Payments for share repurchases | ( | ( | ||||||||||||
Net cash (used in)/provided by financing activities | ( | |||||||||||||
Effects of Exchange Rate Changes on Cash | ||||||||||||||
Net Decrease in Cash and Cash Equivalents | ( | ( | ||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents at end of period | $ | $ |
Initial Estimate | Measurement Period Adjustments | Preliminary Allocation | |||||||||||||||
Trade accounts receivable | $ | $ | — | $ | |||||||||||||
Other receivables | — | ||||||||||||||||
Inventories | |||||||||||||||||
Prepaid expenses | — | ||||||||||||||||
Property, plant and equipment | |||||||||||||||||
Right of use asset - operating leases | — | ||||||||||||||||
Other intangible assets | ( | ||||||||||||||||
Goodwill | ( | ||||||||||||||||
Payable to suppliers | ( | — | ( | ||||||||||||||
Accrued expenses and other | ( | — | ( | ||||||||||||||
Taxes payable | ( | — | ( | ||||||||||||||
Noncurrent operating lease liabilities | ( | — | ( | ||||||||||||||
Deferred income taxes | ( | — | ( | ||||||||||||||
Total purchase price, net of cash acquired | $ | $ | $ | ||||||||||||||
Measurement Period Adjustments | Three Months Ended April 2, 2023 | ||||
Inventories | $ | ( | |||
Property, plant and equipment | ( | ||||
Goodwill | |||||
Accrued expenses and other | ( | ||||
Additional cash consideration | $ |
Supplemental Information (unaudited) | January 26 to | ||||
Metal Packaging | April 3, 2022 | ||||
Net sales | $ | ||||
Net income | $ |
Pro Forma Supplemental Information (unaudited) | Three Months Ended | |||||||
Consolidated | April 3, 2022 | |||||||
Net sales | $ | |||||||
Net income attributable to Sonoco | $ |
Three Months Ended | |||||||||||||||||
April 2, 2023 | April 3, 2022 | ||||||||||||||||
Numerator: | |||||||||||||||||
Net income attributable to Sonoco | $ | $ | |||||||||||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | |||||||||||||||||
Dilutive effect of share-based compensation | |||||||||||||||||
Diluted | |||||||||||||||||
Net income attributable to Sonoco per common share: | |||||||||||||||||
Basic | $ | $ | |||||||||||||||
Diluted | $ | $ | |||||||||||||||
Cash dividends | $ | $ |
Three Months Ended | |||||||||||||||||
April 2, 2023 | April 3, 2022 | ||||||||||||||||
Anti-dilutive stock appreciation rights |
Three Months Ended | ||||||||||||||
April 2, 2023 | April 3, 2022 | |||||||||||||
Restructuring and restructuring-related asset impairment charges | $ | $ | ||||||||||||
Other asset impairments | ||||||||||||||
Restructuring and asset impairment charges | $ | $ |
Three Months Ended | ||||||||||||||
April 2, 2023 | April 3, 2022 | |||||||||||||
Severance and termination benefits | $ | $ | ||||||||||||
Asset impairments | ||||||||||||||
Other costs | ||||||||||||||
Restructuring and restructuring-related asset impairment charges | $ | $ |
Three Months Ended | ||||||||||||||
April 2, 2023 | April 3, 2022 | |||||||||||||
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, 2022 | $ | $ | $ | $ | ||||||||||||||||||||||
2023 charges | ||||||||||||||||||||||||||
Cash payments | ( | ( | ( | ( | ||||||||||||||||||||||
Asset writedowns/disposals | ( | ( | ||||||||||||||||||||||||
Foreign currency translation | ||||||||||||||||||||||||||
Liability at April 2, 2023 | $ | $ | $ | $ |
Foreign Currency Items | Defined Benefit Pension Items | Cash Flow Hedges | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | ( | |||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income | ( | |||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to fixed assets | ||||||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||||||
Balance at April 2, 2023 | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
Balance at December 31, 2021 | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
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 April 3, 2022 | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Loss | |||||||||||||||||
Three Months Ended | |||||||||||||||||
Details about Accumulated Other Comprehensive Loss Components | April 2, 2023 | April 3, 2022 | Affected Line Item in the Condensed Consolidated Statements of Income | ||||||||||||||
Gains/(losses) on cash flow hedges | |||||||||||||||||
Foreign exchange contracts | $ | $ | Net sales | ||||||||||||||
Foreign exchange contracts | ( | ( | Cost of sales | ||||||||||||||
Commodity contracts | ( | Cost of sales | |||||||||||||||
Income before income taxes | |||||||||||||||||
Income tax impact | ( | ( | Provision for income taxes | ||||||||||||||
Net income | |||||||||||||||||
Defined benefit pension items | |||||||||||||||||
Effect of settlement loss(a) | ( | ( | Non-operating pension costs | ||||||||||||||
Amortization of defined benefit pension items(a) | ( | ( | Non-operating pension costs | ||||||||||||||
( | ( | Income before income taxes | |||||||||||||||
Income tax impact | Provision for income taxes | ||||||||||||||||
( | ( | Net income | |||||||||||||||
Total reclassifications for the period | $ | ( | $ | Net income |
Three months ended April 2, 2023 | Three months ended April 3, 2022 | ||||||||||||||||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | Before Tax Amount | Tax (Expense) Benefit | After Tax Amount | ||||||||||||||||||||||||
Foreign currency items: | |||||||||||||||||||||||||||||
Net other comprehensive income/(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(a) | ( | ( | |||||||||||||||||||||||||||
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(b) | ( | ( | ( | ( | |||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to fixed assets | ( | ( | |||||||||||||||||||||||||||
Net other comprehensive income/(loss) from cash flow hedges | ( | ( | |||||||||||||||||||||||||||
Other comprehensive income/ (loss) | $ | $ | ( | $ | $ | $ | ( | $ |
Consumer Packaging | Industrial Paper Packaging | All Other | Total | |||||||||||||||||||||||
Goodwill at December 31, 2022 | $ | $ | $ | $ | ||||||||||||||||||||||
Dispositions | ( | ( | ||||||||||||||||||||||||
Foreign currency translation | ||||||||||||||||||||||||||
Measurement period adjustments | ( | ( | ||||||||||||||||||||||||
Goodwill at April 2, 2023 | $ | $ | $ | $ |
April 2, 2023 | December 31, 2022 | |||||||||||||
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 | $ | $ |
Balance Sheet Line Item | April 2, 2023 | December 31, 2022 | ||||||||||||
Payable to suppliers(a) | $ | $ | ||||||||||||
Notes payable and current portion of long-term debt(b) | $ | $ |
April 2, 2023 | December 31, 2022 | |||||||||||||||||||||||||
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 | |||||||
Canadian dollar | purchase | |||||||
Euro | purchase | |||||||
Turkish lira | purchase | |||||||
Brazilian real | purchase | |||||||
British pound | purchase |
Currency | Action | Quantity | ||||||
Indonesian rupiah | purchase | |||||||
Colombian peso | purchase | |||||||
Mexican peso | purchase | |||||||
Turkish lira | purchase | |||||||
Canadian dollar | purchase | |||||||
Description | Balance Sheet Location | April 2, 2023 | December 31, 2022 | |||||||||||||||||
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 | Other assets | $ | $ | |||||||||||||||||
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 | $ | ( | $ | ( | |||||||||||||||
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 April 2, 2023 | ||||||||||||||||||||
Foreign Exchange Contracts | $ | Net sales | $ | |||||||||||||||||
Cost of sales | $ | ( | ||||||||||||||||||
Commodity Contracts | $ | ( | Cost of sales | $ | ( | |||||||||||||||
Three-month period ended April 3, 2022 | ||||||||||||||||||||
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 April 2, 2023 | ||||||||||||||
Commodity Contracts | $ | ( | Cost of sales | |||||||||||
Foreign Exchange Contracts | $ | Selling, general and administrative | ||||||||||||
Three-month period ended April 3, 2022 | ||||||||||||||
Commodity Contracts | $ | Cost of sales | ||||||||||||
Foreign Exchange Contracts | $ | Selling, general and administrative |
Three-month period ended April 2, 2023 | Three-month period ended April 3, 2022 | |||||||||||||||||||
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 | $ | $ | ( | $ | $ |
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 | April 2, 2023 | 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, 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 | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||
Interest rate lock contract | $ | $ | $ | $ | $ |
Three Months Ended | |||||||||||||||||
April 2, 2023 | April 3, 2022 | ||||||||||||||||
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 | April 2, 2023 | December 31, 2022 | ||||||||||||||
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 | |||||||||||
Lease Cost | April 2, 2023 | April 3, 2022 | |||||||||
Operating lease cost | (a) | $ | $ | ||||||||
Finance lease cost: | |||||||||||
Amortization of lease asset | (a) | ||||||||||
Interest on lease liabilities | (b) | ||||||||||
Variable lease cost | (a) (c) | ||||||||||
Total lease cost | $ | $ | |||||||||
Three Months Ended | |||||||||||
April 2, 2023 | April 3, 2022 | ||||||||||
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 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 | $ | ( | $ |
April 2, 2023 | December 31, 2022 | |||||||||||||
Contract Assets | $ | $ | ||||||||||||
Contract Liabilities | $ | ( | $ | ( |
April 2, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
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 April 2, 2023 | Consumer Packaging | Industrial Paper Packaging | All Other | Total | |||||||||||||||||||
Primary Geographical Markets: | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Europe | |||||||||||||||||||||||
Canada | |||||||||||||||||||||||
Asia | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Three-month period ended April 3, 2022 | Consumer Packaging | Industrial Paper Packaging | All Other | Total | |||||||||||||||||||
Primary Geographical Markets: | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Europe | |||||||||||||||||||||||
Canada | |||||||||||||||||||||||
Asia | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended | |||||||||||||||||
April 2, 2023 | April 3, 2022 | ||||||||||||||||
Net sales: | |||||||||||||||||
Consumer Packaging | $ | $ | |||||||||||||||
Industrial Paper Packaging | |||||||||||||||||
All Other | |||||||||||||||||
Net sales | $ | $ | |||||||||||||||
Intersegment sales: | |||||||||||||||||
Consumer Packaging | $ | $ | |||||||||||||||
Industrial Paper Packaging | |||||||||||||||||
All Other | |||||||||||||||||
Intersegment sales | $ | $ | |||||||||||||||
Operating profit: | |||||||||||||||||
Consumer Packaging | $ | $ | |||||||||||||||
Industrial Paper Packaging | |||||||||||||||||
All Other | |||||||||||||||||
Corporate | |||||||||||||||||
Restructuring/Asset impairment charges | ( | ( | |||||||||||||||
Amortization of acquisition intangibles | ( | ( | |||||||||||||||
Other non-GAAP income/(charges), net | ( | ||||||||||||||||
Operating profit | $ | $ |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
For the three-month period ended April 2, 2023 | |||||||||||||||||
Dollars in thousands, except per share data | Operating Profit | Income Before Income Taxes | Provision for Income Taxes | Net Income Attributable to Sonoco | Diluted EPS | ||||||||||||
As Reported | $ | 229,648 | $ | 193,320 | $ | 46,912 | $ | 148,319 | $ | 1.50 | |||||||
Acquisition/Divestiture-related costs | 5,188 | 5,188 | 1,280 | 3,908 | 0.04 | ||||||||||||
LIFO reserve change | (5,425) | (5,425) | (1,354) | (4,071) | (0.04) | ||||||||||||
Amortization of acquisition intangibles | 21,164 | 21,164 | 5,127 | 16,037 | 0.16 | ||||||||||||
Restructuring/Asset impairment charges | 28,814 | 28,814 | 6,634 | 22,014 | 0.22 | ||||||||||||
Gain on divestiture of business and sale of other assets | (72,010) | (72,010) | (17,122) | (54,888) | (0.55) | ||||||||||||
Non-operating pension costs | — | 3,658 | 909 | 2,749 | 0.03 | ||||||||||||
Derivative losses | 6,085 | 6,085 | 1,518 | 4,567 | 0.05 | ||||||||||||
Other adjustments | (43) | (43) | 955 | (997) | (0.01) | ||||||||||||
Total adjustments | $ | (16,227) | $ | (12,569) | $ | (2,053) | $ | (10,681) | $ | (0.10) | |||||||
Adjusted | $ | 213,421 | $ | 180,751 | $ | 44,859 | $ | 137,638 | $ | 1.40 |
For the three-month period ended April 3, 2022 | |||||||||||||||||
Dollars in thousands, except per share data | Operating Profit | Income Before Income Taxes | Provision for Income Taxes | Net Income Attributable to Sonoco | Diluted EPS | ||||||||||||
As Reported | $ | 169,061 | $ | 148,672 | $ | 35,289 | $ | 115,333 | $ | 1.17 | |||||||
Acquisition/Divestiture-related costs | 48,352 | 48,352 | 11,756 | 36,596 | 0.37 | ||||||||||||
LIFO reserve change | 19,050 | 19,050 | 4,833 | 14,217 | 0.14 | ||||||||||||
Amortization of acquisition intangibles | 18,800 | 18,800 | 4,630 | 14,170 | 0.14 | ||||||||||||
Restructuring/Asset impairment charges | 12,142 | 12,142 | 1,635 | 10,568 | 0.11 | ||||||||||||
Non-operating pension costs | — | 1,324 | 383 | 942 | 0.01 | ||||||||||||
Derivative gains | (6,596) | (6,596) | (1,673) | (4,923) | (0.05) | ||||||||||||
Other adjustments | (16) | (16) | 4,194 | (4,212) | (0.04) | ||||||||||||
Total adjustments | $ | 91,732 | $ | 93,056 | $ | 25,758 | $ | 67,358 | $ | 0.68 | |||||||
Adjusted | $ | 260,793 | $ | 241,728 | $ | 61,047 | $ | 182,691 | $ | 1.85 |
Three Months Ended | |||||||||||
Dollars in thousands | April 2, 2023 | April 3, 2022 | |||||||||
Net income attributable to Sonoco | $ | 148,319 | $ | 115,333 | |||||||
Adjustments | |||||||||||
Interest expense | 34,232 | 20,581 | |||||||||
Interest income | (1,562) | (1,516) | |||||||||
Provision for income taxes | 46,912 | 35,289 | |||||||||
Depreciation, depletion, and amortization | 82,137 | 73,315 | |||||||||
Non-operating pension costs | 3,658 | 1,324 | |||||||||
Net (loss)/income attributable to noncontrolling interests | (55) | 274 | |||||||||
Restructuring/Asset impairment charges | 28,814 | 12,142 | |||||||||
Changes in LIFO inventory reserves | (5,425) | 19,050 | |||||||||
Gain from divestiture of business and sale of other assets | (72,010) | — | |||||||||
Acquisition/Divestiture related costs | 5,188 | 48,352 | |||||||||
Derivative losses/(gains) | 6,085 | (6,596) | |||||||||
Other non-GAAP adjustments | (43) | (16) | |||||||||
Adjusted EBITDA | $ | 276,250 | $ | 317,532 | |||||||
Net Sales | $ | 1,729,783 | $ | 1,770,982 | |||||||
Adjusted EBITDA Margin | 16.0 | % | 17.9 | % |
Segment Adjusted EBITDA and All Other Adjusted EBITDA Reconciliation | |||||||||||||||||
For the Three Months Ended April 2, 2023 | |||||||||||||||||
Dollars in thousands | Consumer Packaging segment | Industrial Paper Packaging segment | All Other | Corporate | Total | ||||||||||||
Segment and Total Operating Profit | $ | 91,821 | $ | 94,367 | $ | 27,233 | $ | 16,227 | $ | 229,648 | |||||||
Adjustments: | |||||||||||||||||
Depreciation, depletion and amortization1 | 30,038 | 24,878 | 6,057 | 21,164 | 82,137 | ||||||||||||
Equity in earnings of affiliates, net of tax | 75 | 1,781 | — | — | 1,856 | ||||||||||||
Restructuring/Asset impairment charges2 | — | — | — | 28,814 | 28,814 | ||||||||||||
Changes in LIFO inventory reserves3 | — | — | — | (5,425) | (5,425) | ||||||||||||
Acquisition/Divestiture-related costs4 | — | — | — | 5,188 | 5,188 | ||||||||||||
Gain from divestiture of business and other assets5 | — | — | — | (72,010) | (72,010) | ||||||||||||
Derivative losses6 | — | — | — | 6,085 | 6,085 | ||||||||||||
Other non-GAAP adjustments | — | — | — | (43) | (43) | ||||||||||||
Segment Adjusted EBITDA | $ | 121,934 | $ | 121,026 | $ | 33,290 | $ | — | $ | 276,250 | |||||||
Net Sales | $ | 909,278 | $ | 615,855 | $ | 204,650 | |||||||||||
Segment Operating Profit Margin | 10.1 | % | 15.3 | % | 13.3 | % | |||||||||||
Segment Adjusted EBITDA Margin | 13.4 | % | 19.7 | % | 16.3 | % |
Segment Adjusted EBITDA and All Other Adjusted EBITDA Reconciliation | |||||||||||||||||
For the Three Months Ended April 3, 2022 | |||||||||||||||||
Dollars in thousands | Consumer Packaging segment | Industrial Paper Packaging segment | All Other | Corporate | Total | ||||||||||||
Segment and Total Operating Profit | $ | 173,609 | $ | 72,660 | $ | 14,524 | $ | (91,732) | $ | 169,061 | |||||||
Adjustments: | |||||||||||||||||
Depreciation, depletion, and amortization1 | 25,736 | 22,624 | 6,155 | 18,800 | 73,315 | ||||||||||||
Equity in earnings of affiliates, net of tax | (38) | 2,262 | — | — | 2,224 | ||||||||||||
Restructuring/Asset impairment charges2 | — | — | — | 12,142 | 12,142 | ||||||||||||
Changes in LIFO inventory reserves3 | — | — | — | 19,050 | 19,050 | ||||||||||||
Acquisition/Divestiture related costs4 | — | — | — | 48,352 | 48,352 | ||||||||||||
Derivative gains5 | — | — | — | (6,596) | (6,596) | ||||||||||||
Other non-GAAP adjustments | — | — | — | (16) | (16) | ||||||||||||
Segment Adjusted EBITDA | $ | 199,307 | $ | 97,546 | $ | 20,679 | $ | — | $ | 317,532 | |||||||
Net Sales | $ | 868,098 | $ | 699,129 | $ | 203,755 | |||||||||||
Segment Operating Profit Margin | 20.0 | % | 10.4 | % | 7.1 | % | |||||||||||
Segment Adjusted EBITDA Margin | 23.0 | % | 14.0 | % | 10.1 | % |
Three Months Ended | ||||||||||||||||||||
($ in thousands) | April 2, 2023 | April 3, 2022 | % Change | |||||||||||||||||
Net sales: | ||||||||||||||||||||
Consumer Packaging | $ | 909,278 | $ | 868,098 | 4.7 | % | ||||||||||||||
Industrial Paper Packaging | 615,855 | 699,129 | (11.9) | % | ||||||||||||||||
All Other | 204,650 | 203,755 | 0.4 | % | ||||||||||||||||
Net sales | $ | 1,729,783 | $ | 1,770,982 | (2.3) | % |
Three Months Ended | ||||||||||||||||||||
($ in thousands) | April 2, 2023 | April 3, 2022 | % Change | |||||||||||||||||
Operating profit: | ||||||||||||||||||||
Consumer Packaging | $ | 91,821 | $ | 173,609 | (47.1) | % | ||||||||||||||
Industrial Paper Packaging | 94,367 | 72,660 | 29.9 | % | ||||||||||||||||
All Other | 27,233 | 14,524 | 87.5 | % | ||||||||||||||||
Corporate | ||||||||||||||||||||
Restructuring/Asset impairment charges | (28,814) | (12,142) | ||||||||||||||||||
Amortization of acquisition intangibles | (21,164) | (18,800) | ||||||||||||||||||
Other non-GAAP charges, net | 66,205 | (60,790) | ||||||||||||||||||
Operating profit | $ | 229,648 | $ | 169,061 | 35.8 | % |
Three Months Ended | ||||||||||||||||||||
($ in thousands) | April 2, 2023 | April 3, 2022 | % Change | |||||||||||||||||
Adjusted EBITDA: | ||||||||||||||||||||
Consumer Packaging | $ | 121,934 | $ | 199,307 | (38.8) | % | ||||||||||||||
Industrial Paper Packaging | 121,026 | 97,546 | 24.1 | % | ||||||||||||||||
All Other | 33,290 | 20,679 | 61.0 | % | ||||||||||||||||
Adjusted EBITDA | $ | 276,250 | $ | 317,532 | (13.0) | % |
Three Months Ended | ||||||||||||||
($ in thousands) | April 2, 2023 | April 3, 2022 | ||||||||||||
Restructuring/Asset impairment charges: | ||||||||||||||
Consumer Packaging | $ | 1,576 | $ | 2,311 | ||||||||||
Industrial Paper Packaging | 24,544 | 7,061 | ||||||||||||
All Other | 1,157 | 78 | ||||||||||||
Corporate | 1,537 | 2,692 | ||||||||||||
Restructuring/Asset impairment charges | $ | 28,814 | $ | 12,142 |
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 | |||||
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: | May 3, 2023 | 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) |
May 3, 2023 | /s/ R. Howard Coker | |||||||
R. Howard Coker | ||||||||
President and Chief Executive Officer |
May 3, 2023 | /s/ Robert R. Dillard | |||||||
Robert R. Dillard | ||||||||
Chief Financial Officer |
May 3, 2023 | ||||||||
/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) (Parenthetical) - shares shares in Thousands |
Apr. 02, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 300,000 | 300,000 |
Common stock, shares issued (in shares) | 97,955 | 97,645 |
Common stock, shares outstanding (in shares) | 97,955 | 97,645 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Income Statement [Abstract] | ||
Net sales | $ 1,729,783 | $ 1,770,982 |
Cost of sales | 1,355,355 | 1,399,417 |
Gross profit | 374,428 | 371,565 |
Selling, general and administrative expenses | 187,976 | 190,362 |
Restructuring/Asset impairment charges | 28,814 | 12,142 |
Gain on divestiture of business and other assets | 72,010 | 0 |
Operating profit | 229,648 | 169,061 |
Non-operating pension costs | 3,658 | 1,324 |
Interest expense | 34,232 | 20,581 |
Interest income | 1,562 | 1,516 |
Income before income taxes | 193,320 | 148,672 |
Provision for income taxes | 46,912 | 35,289 |
Income before equity in earnings of affiliates | 146,408 | 113,383 |
Equity in earnings of affiliates, net of tax | 1,856 | 2,224 |
Net income | 148,264 | 115,607 |
Net loss/(income) attributable to noncontrolling interests | 55 | (274) |
Net income attributable to Sonoco | $ 148,319 | $ 115,333 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 98,167 | 97,924 |
Diluted (in shares) | 98,615 | 98,554 |
Net income attributable to Sonoco: | ||
Basic (in usd per share) | $ 1.51 | $ 1.18 |
Diluted (in usd per share) | $ 1.50 | $ 1.17 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 148,264 | $ 115,607 |
Other comprehensive income: | ||
Foreign currency translation adjustments | 31,808 | 706 |
Changes in defined benefit plans, net of tax | 916 | 191 |
Changes in derivative financial instruments, net of tax | 2,514 | 2,550 |
Other comprehensive income | 35,238 | 3,447 |
Comprehensive income: | 183,502 | 119,054 |
Less: Net loss/(income) attributable to noncontrolling interests | 55 | (274) |
Less: Other comprehensive income attributable to noncontrolling interests | (239) | (891) |
Comprehensive income attributable to Sonoco | $ 183,318 | $ 117,889 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands |
Total |
Common Shares |
Capital in Excess of Stated Value |
Accumulated Other Comprehensive Loss |
Retained Earnings |
Noncontrolling Interests |
|||
---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2021 | $ 1,849,541 | $ 7,175 | $ 119,690 | $ (359,425) | $ 2,070,005 | $ 12,096 | |||
Beginning balance (in shares) at Dec. 31, 2021 | 97,370 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 115,607 | 115,333 | 274 | ||||||
Other comprehensive income/(loss): | |||||||||
Translation gain/(loss) | 706 | (185) | 891 | ||||||
Defined benefit plan adjustment, net of tax | 191 | 191 | |||||||
Derivative financial instruments, net of tax | 2,550 | 2,550 | |||||||
Other comprehensive income/ (loss) | 3,447 | 2,556 | 891 | ||||||
Dividends | (44,124) | (44,124) | |||||||
Issuance of stock awards | 377 | 377 | |||||||
Issuance of stock awards (in shares) | 182 | ||||||||
Shares repurchased | (3,410) | (3,410) | |||||||
Shares repurchased (in shares) | (60) | ||||||||
Share-based compensation | 10,689 | 10,689 | |||||||
Purchase of noncontrolling interest | (13,196) | (7,080) | (6,116) | ||||||
Ending balance at Apr. 03, 2022 | 1,918,931 | $ 7,175 | 120,266 | (356,869) | 2,141,214 | 7,145 | |||
Ending balance (in shares) at Apr. 03, 2022 | 97,492 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 2,072,797 | [1] | $ 7,175 | 140,539 | (430,083) | 2,348,183 | 6,983 | ||
Beginning balance (in shares) at Dec. 31, 2022 | 97,645 | 97,645 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | $ 148,264 | 148,319 | (55) | ||||||
Other comprehensive income/(loss): | |||||||||
Translation gain/(loss) | 31,808 | 31,569 | 239 | ||||||
Defined benefit plan adjustment, net of tax | 916 | 916 | |||||||
Derivative financial instruments, net of tax | 2,514 | 2,514 | |||||||
Other comprehensive income/ (loss) | 35,238 | 34,999 | 239 | ||||||
Dividends | (48,203) | (48,203) | |||||||
Issuance of stock awards | 472 | 472 | |||||||
Issuance of stock awards (in shares) | 485 | ||||||||
Shares repurchased | (10,576) | (10,576) | |||||||
Shares repurchased (in shares) | (175) | ||||||||
Share-based compensation | 7,573 | 7,573 | |||||||
Ending balance at Apr. 02, 2023 | $ 2,205,565 | $ 7,175 | $ 138,008 | $ (395,084) | $ 2,448,299 | $ 7,167 | |||
Ending balance (in shares) at Apr. 02, 2023 | 97,955 | 97,955 | |||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Cash Flows from Operating Activities: | ||
Net income | $ 148,264 | $ 115,607 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Asset impairments | 18,616 | 5,511 |
Depreciation, depletion and amortization | 82,137 | 73,315 |
Share-based compensation expense | 7,573 | 10,689 |
Equity in earnings of affiliates, net | (1,856) | (2,224) |
Cash dividends from affiliated companies | 1,875 | 350 |
Net (gain)/loss on disposition of assets | (60,615) | 190 |
Net gain on divestiture of business | (11,065) | 0 |
Pension and postretirement plan expense | 4,408 | 2,232 |
Pension and postretirement plan contributions | (4,931) | (28,095) |
Increase in net deferred tax liabilities | 1,588 | 4,613 |
Change in assets and liabilities, net of effects from acquisitions and foreign currency adjustments: | ||
Trade accounts receivable | (33,485) | (129,670) |
Inventories | 13,549 | (116,169) |
Payable to suppliers | (71,553) | 60,356 |
Prepaid expenses | 350 | (6,954) |
Income taxes payable and other income tax items | 22,030 | 13,786 |
Accrued expenses and other assets and liabilities | (18,883) | (2,477) |
Net cash provided by operating activities | 98,002 | 1,060 |
Cash Flows from Investing Activities: | ||
Purchases of property, plant and equipment | (83,401) | (67,507) |
Cost of acquisitions, net of cash acquired | 0 | (1,348,589) |
Proceeds from the sale of business, net | 13,839 | 0 |
Proceeds from the sale of assets, net | 71,405 | 183 |
Other net investing activities | (4,810) | 145 |
Net cash used in investing activities | (2,967) | (1,415,768) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of debt | 9,621 | 1,530,145 |
Principal repayment of debt | (84,162) | (33,117) |
Net change in commercial paper | 12,000 | (27,000) |
Net increase (decrease) in outstanding checks | 2,670 | (15,759) |
Cash dividends | (47,731) | (43,747) |
Purchase of noncontrolling interest | 0 | (14,474) |
Payments for share repurchases | (10,576) | (3,410) |
Net cash (used in)/provided by financing activities | (118,178) | 1,392,638 |
Effects of Exchange Rate Changes on Cash | 5,356 | 2,629 |
Net Decrease in Cash and Cash Equivalents | (17,787) | (19,441) |
Cash and cash equivalents at beginning of period | 227,438 | 170,978 |
Cash and cash equivalents at end of period | $ 209,651 | $ 151,537 |
Basis of Interim Presentation |
3 Months Ended |
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Apr. 02, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Interim Presentation | Basis of Interim Presentation In the opinion of the management of Sonoco Products Company (the “Company” or “Sonoco”), the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments, unless otherwise stated) necessary to state fairly the consolidated financial position, results of operations and cash flows for the interim periods reported herein. Certain amounts within “Cash Flows from Operating Activities” in the Condensed Consolidated Statements of Cash Flows for the three-month period ended April 3, 2022 have been reclassified to conform to the current year presentation. Operating results for the three-month period ended April 2, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. |
New Accounting Pronouncements |
3 Months Ended |
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Apr. 02, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04 “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” The amendments in this ASU require that a buyer in a supplier finance program disclose qualitative and quantitative information about its supplier finance programs in each annual reporting period, including a description of key payment terms, amounts outstanding, and a rollforward of the outstanding obligation. In each interim reporting period, the amount outstanding requires disclosure. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted this standard in the first quarter of 2023, with the exception of the amendment on rollforward information, which will be adopted in the first quarter of 2024. The adoption of the new standard did not have a material effect on the consolidated financial statements. During the three-month period ended April 2, 2023, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at April 2, 2023, 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 As previously disclosed, on November 9, 2022, the Company entered into a definitive agreement to purchase the remaining equity interest in RTS Packaging, LLC (“RTS”), from joint venture partner WestRock Company (“WestRock”) and one WestRock paper mill in Chattanooga, Tennessee, for $330,000 in cash, subject to customary pricing adjustments. In January 2023, both the Company and WestRock received a request for additional information and documentary material from the Antitrust Division of the U.S. Department of Justice. The Company anticipates completing the transaction in the second half of 2023, subject to the satisfaction or waiver of the closing conditions contained in the purchase agreement, including the expiration or early termination of waiting periods or extensions thereof under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Upon completion of the transaction, the Company will own 100% of RTS, which is currently operated as a joint venture between Sonoco (35% ownership interest) and WestRock (65% ownership interest). The RTS joint venture was formed in 1997 and combined the former protective packaging operations of WestRock and the Company to market solid fiber partitions from recycled paperboard to glass container manufacturers and producers of wine, liquor, food, and pharmaceuticals. The transaction will give the Company full ownership of fourteen converting operations, including ten in the United States, two in Mexico, and two in South America and one paper mill in the United States. Upon completion of the transaction, approximately 1,100 individuals will become employees of the Company. The Company expects to fund the acquisition with new borrowings from lenders and cash on hand. On November 15, 2022, the Company completed the acquisition of S.P. Holding, Skjern A/S (“Skjern”), a privately owned manufacturer of paper based in Skjern, Denmark for $88,647, net of cash acquired. Skjern produces high-grade paperboard from recycled paper for rigid paper containers, tubes and cores, and other applications. Goodwill for Skjern, none of which is expected to be deductible for income tax purposes, consists of increased access to certain markets and existing customer relationships. Skjern's financial results are included in the Company's Industrial Paper Packaging segment. The Company's initial fair value estimates of the assets acquired and the liabilities assumed in the Skjern acquisition, as well as updated preliminary fair value allocations reflecting adjustments made during the measurement period, are as follows:
The allocation of the purchase price of Skjern to the tangible and intangible assets acquired and liabilities assumed, as reflected under the heading “Preliminary Allocation” in the table above, is based on the Company's preliminary allocations of their fair value, based on information currently available. Management is continuing to finalize its valuation of certain assets and liabilities including, but not limited to: inventory; property, plant and equipment; goodwill; other intangible assets; and deferred income taxes, and expects to complete its valuations within one year of the date of acquisition. The Company has accounted for this acquisition as a business combination under the acquisition method and has included the results of operations of the acquired business in the Company's Condensed Consolidated Statements of Income from the date of acquisition. On January 26, 2022, the Company completed the acquisition of Ball Metalpack Holding, LLC, renamed Sonoco Metal Packaging (“Metal Packaging”), a leading supplier of sustainable metal packaging for food and household products and the largest aerosol can producer in North America, for $1,348,589, net of cash acquired. Prior to the Company's acquisition of Metal Packaging, Ball Metalpack Holding, LLC was a joint venture formed in 2018 and owned by Platinum Equity (51%) and Ball Corporation (49%). Metal Packaging consists of eight manufacturing plants in the United States and a headquarters facility in Broomfield, Colorado. During the three-month period ended April 2, 2023, the Company finalized its valuations of the assets and liabilities assumed in the acquisition of Metal Packaging. As a result, the following measurement period adjustments were made to the previously disclosed provisional fair values of assets acquired and liabilities assumed:
Factors comprising goodwill include increased access to certain markets as well as the value of the assembled workforce. Approximately 81% of the 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 from the prior year date of acquisition through the end of the reporting period ending April 3, 2022:
The following table presents the Company’s estimated unaudited pro forma consolidated results for the three-month period ended April 3, 2022, assuming the acquisition of Metal Packaging had occurred on January 1, 2021. This unaudited pro forma information is presented for informational purposes only and does not purport to represent the results of operations that would have been achieved if the acquisition had been completed at the beginning of 2021, nor is it necessarily indicative of future consolidated results.
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-month period ended April 3, 2022 includes adjustments to depreciation, amortization, and income taxes based upon the final fair value allocation of the purchase price to Metal Packaging's tangible and intangible assets acquired and liabilities assumed as though the acquisition had occurred on January 1, 2021. Interest expense on the additional debt issued by the Company to fund the acquisition and retention bonuses incurred related to the acquisition are also included in the unaudited pro forma information as if the acquisition had occurred on January 1, 2021. Acquisition-related costs of $22,284 were recognized during the three-month period ended April 3, 2022 and charges related to fair value adjustments to acquisition-date inventory of $25,000 were recognized during the three-month period ended April 3, 2022. These costs are excluded from 2022 unaudited pro forma net income as though the acquisition had occurred on January 1, 2021. Divestiture of Business On January 26, 2023, the Company completed the sale of its Sonoco Sustainability Solutions (“S3”) business, a provider of customized waste and recycling management programs and part of the Company's Industrial Paper Packaging segment, to Northstar Recycling Co. (“Northstar”), for total cash proceeds of $13,839. An additional $1,500 of proceeds are being held in escrow and will be released to the Company, pursuant to any indemnification claims, 20 months following the date of the divestiture. These escrow proceeds are included in “Other Assets” in the Company’s Condensed Consolidated Balance Sheets as of April 2, 2023. The Company wrote off net assets totaling $4,274 as part of the divestiture of the business, including $3,042 of allocated goodwill, and recognized a pretax gain of $11,065 during the three-month period ended April 2, 2023, which is included in “Gain on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income. The Company is also entitled to receive additional proceeds of $3,200 in the second quarter of 2024 if certain conditions are met. This contingent consideration will be recognized as additional gain on the sale at the point the contingencies are resolved. In addition, the Company purchased a 2.7% equity interest in Northstar for $5,000. This investment is being accounted for under the measurement alternative (i.e., cost less impairment, adjusted for any qualifying observable price changes). The Company continually assesses its operational footprint as well as its overall portfolio of businesses and may consider the divestiture of plants and/or business units it considers to be suboptimal or nonstrategic. Sale of Assets With the completion of Project Horizon, the Company's project to convert the corrugated medium machine in Hartsville, South Carolina, to produce uncoated recycled paperboard, the Company now produces paper exclusively from recycled fibers and no longer requires natural tree fiber for production. Accordingly, on March 29, 2023, the Company sold its timberland properties, approximately 55,000 acres, to Manulife Investment Management for net cash proceeds of $70,802. The Company disposed of assets with a net book value of $9,857 as part of the sale, and recognized a pretax gain from the sale of these assets of $60,945 during the three months ended April 2, 2023, which is included in “Gain on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income. Acquisition and Divestiture-Related Costs Acquisition- and divestiture-related costs totaled $5,188 during the three-month period ended April 2, 2023. These costs include legal and professional fees, investment banking fees, and other transaction costs that are included in “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income. Acquisition-related costs totaled $48,352 during the three months ended April 3, 2022 primarily related to the acquisition of Metal Packaging. These charges included the partial amortization of the fair value step-up of finished goods inventory of $25,000, included in “Cost of sales” in the Company's Condensed Consolidated Statements of Income, and other acquisition-related charges of $23,352. These other charges consisted primarily of investment banking fees, representation and warranty insurance premiums, legal and professional fees, and other transaction costs and are included in “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income.
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Shareholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders' Equity Earnings per Share The following table sets forth the computation of basic and diluted earnings per share:
No adjustments were made to “Net income attributable to Sonoco” in the computations of net income attributable to Sonoco per common share. Anti-dilutive Securities Potentially dilutive securities are calculated in accordance with the treasury stock method, which assumes the proceeds from the exercise of all dilutive stock appreciation rights (“SARs”) are used to repurchase the Company’s common stock. Certain SARs are not dilutive because either the exercise price is greater than the average market price of the stock during the reporting period or assumed repurchases from proceeds from the exercise of the SARs were anti-dilutive. These SARs may become dilutive in the future if the market price of the Company's common stock appreciates. The average numbers of SARs that were anti-dilutive and, therefore, not included in the computation of diluted earnings per share during the three-month periods ended April 2, 2023 and April 3, 2022 were as follows (in thousands):
Stock Repurchases On April 20, 2021, the Company's Board of Directors (the “Board”) authorized the repurchase of the Company's common stock in an aggregate amount of up to $350,000. Following several repurchase transactions in 2021, a total of $137,972 remained available for share repurchases under this authorization as of December 31, 2021. No shares were repurchased under this authorization during the year ended December 31, 2022 or the three-month period ended April 2, 2023. The Company regularly repurchases shares of its common stock to satisfy employee tax withholding obligations in association with certain share-based compensation awards. These repurchases, which are not part of a publicly announced plan or program, totaled 175 shares during the three-month period ended April 2, 2023, at a cost of $10,576, and 60 shares during the three-month period ended April 3, 2022, at a cost of $3,410. Dividend Declarations On February 8, 2023, the Board of Directors declared a regular quarterly dividend of $0.49 per share. This dividend was paid on March 10, 2023 to all shareholders of record as of February 22, 2023. On April 19, 2023, the Board of Directors declared a regular quarterly dividend of $0.51 per share. This dividend is payable on June 9, 2023 to all shareholders of record as of May 10, 2023. Noncontrolling interestsIn 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 April 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 Impairments Due 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 three months of 2023 includes the cost of severance for approximately 159 employees whose positions were eliminated in conjunction with the Company's ongoing organizational effectiveness efforts and severance related to the closure of the Company's paper mill in Hutchinson, Kansas, part of the Industrial Paper Packaging segment. “Asset Impairments/Disposal of Assets” during the first three months of 2023 consists primarily of asset impairment charges related to the closure of the Company's paper mill in Hutchinson, Kansas. “Other Costs” during the first three months of 2023 consists primarily of consulting services, costs related to the closure of the Hutchinson, Kansas paper mill, and the cost of earlier plant closures, including equipment removal, utilities, plant security, property taxes and insurance. The Company expects to pay the majority of the remaining restructuring reserves by the end of 2023 using cash generated from operations. The Company also expects to recognize future additional charges totaling approximately $5,200 in connection with previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2023. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken. Other Asset Impairments Total other asset impairment charges of $6,389 were incurred during the three months ended April 3, 2022, which includes $5,713 of impairment charges related to the Company's decision to exit its operations in Russia, part of the Industrial Paper Packaging segment, as a result of the ongoing Russia-Ukraine conflict, and $676 of fixed asset impairments in the Company's plastics foods operations, part of the Consumer Packaging segment. The assets were impaired as the value of their projected undiscounted cash flows was determined to no longer be sufficient to recover their carrying value. These impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s Condensed Consolidated Statements of Income.
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Accumulated Other Comprehensive Loss |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 three-month periods ended April 2, 2023 and April 3, 2022:
The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three-month periods ended April 2, 2023 and April 3, 2022:
(a) 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 April 2, 2023 and April 3, 2022:
(a) See Note 11 for additional details. (b) See Note 9 for additional details.
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Goodwill and Other Intangible Assets |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill A summary of the changes in goodwill for the three-month period ended April 2, 2023 is as follows:
Goodwill activity reflected under the caption “Dispositions” relates to the sale of the Company's S3 business on January 25, 2023. Goodwill activity reflected under the caption “Measurement period adjustments” relates to the prior year acquisitions of Metal Packaging and Skjern. 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. At April 2, 2023, the total goodwill associated with the Plastics - Healthcare reporting unit was $62,963 and the total goodwill associated with the Protexic reporting unit was $29,051. During the time subsequent to the annual evaluation, and at April 2, 2023, the Company considered whether any events and/or changes in circumstances had resulted in the likelihood that the goodwill of any of its reporting units may have been impaired. It is management's opinion that no such events and/or changes in circumstances have occurred. Other Intangible Assets A summary of other intangible assets as of April 2, 2023 and December 31, 2022 is as follows:
Other intangible assets are amortized using the straight-line method over their respective useful lives when management has determined that the straight-line method approximates the pattern of consumption of the respective intangible assets. These lives generally range from to forty years. The Company has no intangible assets with indefinite lives. Aggregate amortization expense was $21,164 and $18,800 for the three-month periods ended April 2, 2023 and April 3, 2022, respectively. Amortization expense on other intangible assets is expected to total approximately $81,900 in 2023, $74,000 in 2024, $64,900 in 2025, $61,600 in 2026 and $60,100 in 2027.
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Supply Chain Financing |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supply Chain Financing | Supply Chain Financing The Company facilitates voluntary supply chain financing programs (the “SCF Programs”) to provide certain of its suppliers with the opportunity to sell receivables due from the Company to the participating financial institutions in the programs. Such sales are conducted at the sole discretion of both the suppliers and the financial institutions on a nonrecourse basis at a rate that leverages the Company's credit rating and thus might be more beneficial to the supplier. No guarantees are provided by the Company or any of its subsidiaries under the SCF Programs. The Company's responsibility under the agreements is limited to making payment to the financial institutions for confirmed invoices based on the terms originally negotiated with its suppliers. Both the Company and the financial institutions have the right to terminate the SCF Programs by providing 30 days prior written notice to the other party. The Company does not enter into any agreements with suppliers regarding their participation in the SCF Programs. The following table sets forth the balance sheet location and values of the Company’s SCF Program obligations at April 2, 2023 and December 31, 2022:
(a) The payment of these obligations is included in net cash provided by operating activities in the Company's Consolidated Statements of Cash Flows. (b) The payment of these obligations is included in net cash used in financing activities in the Company's Consolidated Statements of Cash Flows.
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Financial Instruments and Derivatives |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Derivatives | Financial Instruments and Derivatives The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value.
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 April 2, 2023 and December 31, 2022, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows. These contracts, 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 April 2, 2023, these contracts included natural gas swaps covering approximately 0.1 million metric million British thermal units (“MMBTUs”). These contracts represented approximately 1% of anticipated usage in North America for both 2023 and 2024. The Company also has certain natural gas hedges that it does not treat as cash flow hedges. See “Non-Designated Derivatives” below for a discussion of these hedges. At April 2, 2023, the Company has also designated swap contracts covering 715 metric tons of aluminum as cash flow hedges. The fair value of the Company’s commodity cash flow hedges netted to a loss position of $(218) and $(172) at April 2, 2023 and December 31, 2022, respectively. The amount of the loss included in accumulated other comprehensive loss at April 2, 2023 expected to be reclassified to the income statement during the next twelve months is $(178). Foreign Currency Cash Flow Hedges The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales, purchases, and capital spending expected to occur in 2023 and 2024. The net positions of these contracts at April 2, 2023 were as follows (in thousands):
The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to a gain position of $2,560 and a loss position of $(299) at April 2, 2023 and December 31, 2022, respectively. Gains of $2,560 are expected to be reclassified from accumulated other comprehensive income 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 April 2, 2023 and December 31, 2022, the net position of these contracts was $(16) and $(564), respectively. During the three-month period ended April 2, 2023, losses from these hedges of $(401) were reclassified from accumulated other comprehensive loss and included in the carrying value of the capitalized expenditures. Losses of $(22) 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 April 2, 2023, 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 April 2, 2023, these contracts consisted of natural gas swaps covering approximately 8.3 million MMBTUs and represented approximately 78% and 54% of anticipated usage for 2023 and 2024, respectively. Interest Rate Hedges Pursuant to the registered public offering of unsecured 2.850% notes with a principal amount of $500,000 maturing on February 1, 2032, the Company entered into treasury lock derivative instruments with two banks, with a notional principal amount of $150,000 each on December 29, 2021. These instruments had the risk management objective of reducing exposure to the Company of increases in the underlying Treasury index up to the date of pricing of the notes. The derivatives were settled when the bonds priced on January 11, 2022, with the Company recognizing a gain on the settlement of $5,201. The gain is included in “Selling, general and administrative expenses” on the Company's Condensed Consolidated Statements of Income for the three-month period ended April 3, 2022. The fair value of the Company’s non-designated derivatives position was a loss of $(14,691) and $(8,692) at April 2, 2023 and December 31, 2022, respectively. The following table sets forth the location and fair values of the Company’s derivative instruments at April 2, 2023 and December 31, 2022:
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 April 2, 2023 and April 3, 2022, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures:
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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. None of the Company’s financial assets or liabilities are measured at fair value using significant unobservable inputs. There were no transfers in or out of Level 1 or Level 2 fair value measurements during the three-month period ended April 2, 2023. The Company measures certain non-financial assets and non-financial liabilities at fair value on a recurring basis. See Note 3 for a discussion of assets acquired and liabilities assumed in acquisitions and Note 5 for a discussion of asset impairments associated with restructuring activities. The fair value of assets determined based on third-party appraisals and classified as Level 3 measurements due to the use of significant unobservable inputs was not material at April 2, 2023 or December 31, 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 $686 and $356 during the three-month periods ended April 2, 2023 and April 3, 2022, respectively. These charges resulted from payments made to certain participants in the Company's non-union Canadian pension plan who elected a lump sum distribution option upon retirement. Additional settlement charges related to the Canadian pension plans may be recognized over the remainder of 2023 as a result of ongoing lump-sum distributions. Contributions The Company made aggregate contributions of $4,931 and $6,147 to its defined benefit retirement and retiree health and life insurance plans during the three-month periods ended April 2, 2023 and April 3, 2022, respectively. The Company expects to make additional aggregate contributions of approximately $10,300 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2023. Sonoco Retirement and Savings Plan The Sonoco Retirement and Savings Plan is a defined contribution retirement plan provided for certain of the Company’s U.S. employees. The plan is comprised of both an elective and non-elective component. The elective component of the plan, which is designed to meet the requirements of Section 401(k) of the Internal Revenue Code, allows participants to set aside a portion of their wages and salaries for retirement and encourages saving by matching a portion of their contributions with contributions from the Company. The plan provides for participant contributions of 1% to 100% of gross pay. Effective December 31, 2021, the Company’s match on elective contributions to the plan increased from 50% of the first 4% of compensation contributed by participants to 100% of the first 6% as a result of changes to the plan, described below. The non-elective component of the plan, the Sonoco Retirement Contribution (“SRC”), was eliminated effective December 31, 2021. 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. The Company made SRC contributions totaling $21,948 during the three-month period ended April 3, 2022 related to the 2021 fiscal year. No additional SRC contributions will occur.
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Income Taxes |
3 Months Ended |
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Apr. 02, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rates for the three-month periods ended April 2, 2023 and April 3, 2022 were 24.3% and 23.7%, 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 2023 rate was primarily driven by the absence of a first quarter 2022 deferred tax benefit related to the Metal Packaging acquisition. The Company and/or its subsidiaries file federal, state and local income tax returns in the United States and various foreign jurisdictions. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years prior to 2017. The Company’s reserve for uncertain tax benefits has increased by $798 since December 31, 2022 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 April 2, 2023 could increase by approximately $260 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 - Leases. 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, which included the acquisition of $33,910 in operating lease liabilities and $46,687 in finance lease liabilities as of the date of acquisition. The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at April 2, 2023 and December 31, 2022:
Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term. The following table sets forth the components of the Company’s total lease cost for the three-month periods ended April 2, 2023 and April 3, 2022:
(a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively. (b) Included in interest expense. (c) Also includes short term lease costs, which are deemed immaterial. The following table sets forth certain lease-related information for the three-month periods ended April 2, 2023 and April 3, 2022:
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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 - Leases. 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, which included the acquisition of $33,910 in operating lease liabilities and $46,687 in finance lease liabilities as of the date of acquisition. The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at April 2, 2023 and December 31, 2022:
Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term. The following table sets forth the components of the Company’s total lease cost for the three-month periods ended April 2, 2023 and April 3, 2022:
(a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively. (b) Included in interest expense. (c) Also includes short term lease costs, which are deemed immaterial. The following table sets forth certain lease-related information for the three-month periods ended April 2, 2023 and April 3, 2022:
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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 estimated revenue and are determinable within a short time period following the sale. The following table sets forth the effects of contract assets and liabilities from contracts with customers. Contract assets and liabilities are reported in “Other receivables” and “Accrued expenses and other,” respectively, on the Company’s Condensed Consolidated Balance Sheets.
Significant changes in the contract assets and liabilities balances during the three-month period ended April 2, 2023 and the year ended December 31, 2022 were as follows:
Contract assets represent goods produced without alternative use for which the Company is entitled to payment with margin prior to shipment. Upon shipment, the Company is entitled to bill the customer, and therefore amounts included in contract assets will be reduced with the recording of an account receivable as they represent an unconditional right to payment. Contract liabilities represent revenue deferred due to pricing mechanisms utilized by the Company in certain multi-year arrangements, volume rebates, and receipts of advance payments. For multi-year arrangements with pricing mechanisms, the Company will generally defer revenue during the first half of the arrangement and will release the deferral over the back half of the contract term. Contract assets and liabilities are generally short in duration given the nature of products produced by the Company. The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended April 2, 2023 and April 3, 2022. The tables also include a reconciliation of disaggregated revenue with reportable segments. The Company’s reportable segments are aligned by product nature as disclosed in Note 15.
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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 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, steel and plastic containers; metal and peelable membrane ends, closures, and components; thermoformed plastic trays; and high-barrier flexible packaging. The primary products produced and sold within the Industrial Paper Packaging segment include paperboard tubes, cones, and cores; paper-based protective packaging; and uncoated recycled paperboard. The primary products produced with the All Other group of businesses consist of a variety of packaging materials, including plastic, paper, foam, and various other specialty materials. The following table sets forth net sales, intersegment sales and operating profit for the Company’s reportable segments and All Other group of businesses. “Segment operating profit” is defined as the segment’s portion of operating profit excluding restructuring/asset impairment charges, acquisition/divestiture-related expenses, amortization of acquisition intangibles, changes in last-in, first-out (“LIFO”) inventory reserves, gains/losses from the divestiture of businesses or other assets, and 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. SEGMENT FINANCIAL INFORMATION
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Commitments and Contingencies |
3 Months Ended |
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Apr. 02, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Pursuant to U.S. GAAP, accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and that the amounts are reasonably estimable. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings from a variety of sources. Some of these exposures, as discussed below, have the potential to be material. Environmental Matters The Company is subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which it operates. Spartanburg In connection with its acquisition of Tegrant in November 2011, the Company identified potential environmental contamination at a site in Spartanburg, South Carolina. Since the acquisition, the Company has spent a total of $2,005 on remediation of the Spartanburg site. At April 2, 2023 and December 31, 2022, the Company's accrual for environmental contingencies related to the Spartanburg site totaled $5,395 and $5,425, respectively. The Company cannot currently estimate its potential liability, damages or range of potential loss, if any, beyond the amounts accrued with respect to this exposure. However, the Company does not believe that the resolution of this matter has a reasonable possibility of having a material adverse effect on the Company's financial statements. Other environmental matters The Company has been named as a potentially responsible party at several other environmentally contaminated sites. All of the sites are also the responsibility of other parties. The potential remediation liabilities are shared with such other parties, and, in most cases, the Company’s share, if any, cannot be reasonably estimated at the current time. However, the Company does not believe that the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company's financial statements. At April 2, 2023 and December 31, 2022, the Company's accrual for these other sites totaled $1,790 and $1,840, respectively. Summary As of April 2, 2023 and December 31, 2022, the Company (and its subsidiaries) had accrued $7,185 and $7,265, respectively, related to environmental contingencies. These accruals are included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets. Other Legal Matters In addition to those matters described above, the Company is subject to other various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters could differ from management’s expectations, the Company does not believe the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s financial statements.
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New Accounting Pronouncements (Policies) |
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Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||
New Accounting Pronouncements | During the three-month period ended April 2, 2023, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at April 2, 2023, there are no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements. | ||||||||||||||||||||||||
Fair Value Measurements | Fair value is defined as an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows:
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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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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Preliminary Fair Value Of Assets Acquired And Measurement Period Adjustments | The Company's initial fair value estimates of the assets acquired and the liabilities assumed in the Skjern acquisition, as well as updated preliminary fair value allocations reflecting adjustments made during the measurement period, are as follows:
During the three-month period ended April 2, 2023, the Company finalized its valuations of the assets and liabilities assumed in the acquisition of Metal Packaging. As a result, the following measurement period adjustments were made to the previously disclosed provisional fair values of assets acquired and liabilities assumed:
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Schedule Of Proforma Supplemental Information | The following table presents the unaudited financial results for Metal Packaging from the prior year date of acquisition through the end of the reporting period ending April 3, 2022:
The following table presents the Company’s estimated unaudited pro forma consolidated results for the three-month period ended April 3, 2022, assuming the acquisition of Metal Packaging had occurred on January 1, 2021. This unaudited pro forma information is presented for informational purposes only and does not purport to represent the results of operations that would have been achieved if the acquisition had been completed at the beginning of 2021, nor is it necessarily indicative of future consolidated results.
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Shareholders' Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings (Loss) Per Share | The following table sets forth the computation of basic and diluted earnings 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-month periods ended April 2, 2023 and April 3, 2022 were as follows (in thousands):
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Restructuring and Asset Impairments (Tables) |
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Apr. 02, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restructuring and Restructuring-Related Asset Impairment Expenses by Type Incurred and by Reportable Segment | Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented:
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) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Components of Accumulated Other Comprehensive Loss | The following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the three-month periods ended April 2, 2023 and April 3, 2022:
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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-month periods ended April 2, 2023 and April 3, 2022:
(a) 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 April 2, 2023 and April 3, 2022:
(a) See Note 11 for additional details. (b) See Note 9 for additional details.
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Goodwill and Other Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Changes in Goodwill | A summary of the changes in goodwill for the three-month period ended April 2, 2023 is as follows:
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Summary of Other Intangible Assets | A summary of other intangible assets as of April 2, 2023 and December 31, 2022 is as follows:
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Supply Chain Financing (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Supply Chain Financing Program Obligations | The following table sets forth the balance sheet location and values of the Company’s SCF Program obligations at April 2, 2023 and December 31, 2022:
(a) The payment of these obligations is included in net cash provided by operating activities in the Company's Consolidated Statements of Cash Flows. (b) The payment of these obligations is included in net cash used in financing activities in the Company's Consolidated Statements of Cash Flows.
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Financial Instruments and Derivatives (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Carrying Amounts and Fair Values of Financial Instruments | The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value.
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Summary of Net Positions of Foreign Contracts | The net positions of these contracts at April 2, 2023 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 April 2, 2023, 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 April 2, 2023 and December 31, 2022:
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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 April 2, 2023 and April 3, 2022, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures:
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Assets and Liabilities Measured on Recurring Basis | The following table sets forth information regarding the Company’s financial assets and financial liabilities, excluding retirement and postretirement plan assets, measured at fair value on a recurring basis:
|
Employee Benefit Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Balance Sheet Location and Values of Company's Lease Assets and Lease Liabilities | The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at April 2, 2023 and December 31, 2022:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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-month periods ended April 2, 2023 and April 3, 2022:
(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.
|
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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 three-month periods ended April 2, 2023 and April 3, 2022:
|
Revenue Recognition (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Receivables, Contracts Assets and Liabilities from Contracts With Customers | The following table sets forth the effects of contract assets and liabilities from contracts with customers. Contract assets and liabilities are reported in “Other receivables” and “Accrued expenses and other,” respectively, on the Company’s Condensed Consolidated Balance Sheets.
Significant changes in the contract assets and liabilities balances during the three-month period ended April 2, 2023 and the year ended December 31, 2022 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 April 2, 2023 and April 3, 2022. The tables also include a reconciliation of disaggregated revenue with reportable segments. The Company’s reportable segments are aligned by product nature as disclosed in Note 15.
|
Segment Reporting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Financial Information | SEGMENT FINANCIAL INFORMATION
|
Acquisitions and Divestitures - Additional Information (Details) |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 29, 2023
USD ($)
a
|
Jan. 26, 2023
USD ($)
|
Nov. 15, 2022
USD ($)
|
Nov. 09, 2022
USD ($)
|
Jan. 26, 2022
USD ($)
manufacturing_plant
|
Apr. 02, 2023
USD ($)
employee
facility
|
Apr. 03, 2022
USD ($)
|
Jun. 30, 2024
USD ($)
|
Dec. 31, 2023 |
|
Business Acquisition [Line Items] | |||||||||
Consideration paid, net of cash acquired | $ 0 | $ 1,348,589,000 | |||||||
Acquisition and divestiture-related costs | 5,188,000 | 48,352,000 | |||||||
Dispositions | 0 | ||||||||
Gain on divestiture of business and other assets | 11,065,000 | 0 | |||||||
Forecast | Rts Packaging Jvco | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percentage by parent | 100.00% | ||||||||
Selling, general and administrative | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition and divestiture-related costs | 23,352,000 | ||||||||
Disposed of by sale | Sonoco Sustainability Solutions Business | |||||||||
Business Acquisition [Line Items] | |||||||||
Proceeds from the sale of business, net | $ 13,839,000 | ||||||||
Funding of escrow funds | $ 1,500,000 | ||||||||
Funds held in escrow, term | 20 months | ||||||||
Wrote off net assets as part of the sale totaling | 4,274,000 | ||||||||
Dispositions | 3,042,000 | ||||||||
Gain on divestiture of business and other assets | $ 11,065,000 | ||||||||
Contingent consideration from disposal | $ 5,000,000 | ||||||||
Consideration from disposal, equity interest percentage received | 2.70% | ||||||||
Disposed of by sale | Sonoco Sustainability Solutions Business | Forecast | |||||||||
Business Acquisition [Line Items] | |||||||||
Contingent consideration from disposal | $ 3,200,000 | ||||||||
Disposed of by sale | Timberland properties | |||||||||
Business Acquisition [Line Items] | |||||||||
Proceeds from the sale of business, net | $ 70,802,000 | ||||||||
Wrote off net assets as part of the sale totaling | 9,857,000 | ||||||||
Area of land | a | 55,000 | ||||||||
Gain (loss) on the sale of business | 60,945,000 | ||||||||
Rts Packaging Jvco | |||||||||
Business Acquisition [Line Items] | |||||||||
Total consideration | $ 330,000,000 | ||||||||
Interest held in acquiree before subsequent acquisition (percent) | 35.00% | ||||||||
Additional interest acquired | 65.00% | ||||||||
Approximate number of employees (employee) | employee | 1,100 | ||||||||
Rts Packaging Jvco | All Other | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of converting operations | facility | 14 | ||||||||
Rts Packaging Jvco | All Other | Mexico | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of converting operations | facility | 2 | ||||||||
Rts Packaging Jvco | All Other | South America | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of converting operations | facility | 2 | ||||||||
Rts Packaging Jvco | All Other | United States | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of converting operations | facility | 10 | ||||||||
Rts Packaging Jvco | Paper Mill | United States | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of converting operations | facility | 1 | ||||||||
Skjern | |||||||||
Business Acquisition [Line Items] | |||||||||
Total consideration | $ 88,647,000 | ||||||||
Metal Packaging | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration paid, net of cash acquired | $ 1,348,589,000 | ||||||||
Joint venture, ownership (percent) | 51.00% | ||||||||
Number of facilities acquired | manufacturing_plant | 8 | ||||||||
Goodwill expected tax deductible percentage | 81.00% | ||||||||
Acquisition and divestiture-related costs | 22,284,000 | ||||||||
Metal Packaging | Cost of sales | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition and divestiture-related costs | $ 25,000,000 | ||||||||
Ball Corporation | |||||||||
Business Acquisition [Line Items] | |||||||||
Joint venture, ownership (percent) | 49.00% |
Acquisitions and Divestitures - Schedule of Preliminary Fair Value Of Assets Acquired And Measurement Period Adjustments (Details) - USD ($) $ in Thousands |
3 Months Ended | 5 Months Ended | |||||
---|---|---|---|---|---|---|---|
Apr. 02, 2023 |
Apr. 02, 2023 |
Dec. 31, 2022 |
[1] | Nov. 15, 2022 |
|||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||
Goodwill | $ 1,679,547 | $ 1,679,547 | $ 1,675,311 | ||||
Three Months Ended April 2, 2023 | |||||||
Goodwill | (1,008) | ||||||
Skjern | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||
Trade accounts receivable | 8,055 | 8,055 | $ 8,055 | ||||
Other receivables | 193 | 193 | 193 | ||||
Inventories | 2,609 | 2,609 | 2,595 | ||||
Prepaid expenses | 349 | 349 | 349 | ||||
Property, plant and equipment | 29,255 | 29,255 | 24,334 | ||||
Right of use asset - operating leases | 28 | 28 | 28 | ||||
Other intangible assets | 39,330 | 39,330 | 42,818 | ||||
Goodwill | 27,612 | 27,612 | 29,059 | ||||
Payable to suppliers | (3,466) | (3,466) | (3,466) | ||||
Accrued expenses and other | (1,173) | (1,173) | (1,173) | ||||
Taxes payable | (576) | (576) | (576) | ||||
Noncurrent operating lease liabilities | (20) | (20) | (20) | ||||
Deferred income taxes | (13,549) | (13,549) | (13,549) | ||||
Total purchase price, net of cash acquired | 88,647 | 88,647 | $ 88,647 | ||||
Three Months Ended April 2, 2023 | |||||||
Inventories | 14 | ||||||
Property, plant and equipment | 4,921 | ||||||
Other intangible assets | (3,488) | ||||||
Goodwill | (1,447) | ||||||
Additional cash consideration | $ 0 | ||||||
Metal Packaging | |||||||
Three Months Ended April 2, 2023 | |||||||
Inventories | (73) | ||||||
Property, plant and equipment | (247) | ||||||
Goodwill | 439 | ||||||
Accrued expenses and other | (119) | ||||||
Additional cash consideration | $ 0 | ||||||
|
Acquisitions and Divestitures - Schedule Of Proforma Supplemental Information (Details) - USD ($) $ in Thousands |
2 Months Ended | 3 Months Ended |
---|---|---|
Apr. 03, 2022 |
Apr. 03, 2022 |
|
Business Acquisition [Line Items] | ||
Net sales | $ 1,820,570 | |
Net income attributable to Sonoco | $ 164,881 | |
Metal Packaging | ||
Business Acquisition [Line Items] | ||
Net sales | $ 171,228 | |
Net income attributable to Sonoco | $ 14,019 |
Shareholders' Equity - Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 10, 2023 |
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Numerator: | |||
Net income attributable to Sonoco | $ 148,319 | $ 115,333 | |
Denominator: | |||
Basic (in shares) | 98,167 | 97,924 | |
Dilutive effect of stock-based compensation (in shares) | 448 | 630 | |
Diluted (in shares) | 98,615 | 98,554 | |
Net income attributable to Sonoco per common share: | |||
Basic (in usd per share) | $ 1.51 | $ 1.18 | |
Diluted (in usd per share) | 1.50 | 1.17 | |
Cash dividends (in usd per share) | $ 0.49 | $ 0.49 | $ 0.45 |
Shareholders' Equity - Antidilutive Securities (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Anti-dilutive stock appreciation rights | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive stock appreciation rights (in shares) | 343 | 401 |
Shareholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 09, 2023
$ / shares
|
Apr. 19, 2023
$ / shares
|
Mar. 10, 2023
$ / shares
|
Feb. 08, 2023
$ / shares
|
Mar. 31, 2022
USD ($)
partner
|
Apr. 02, 2023
USD ($)
$ / shares
shares
|
Apr. 03, 2022
USD ($)
$ / shares
shares
|
Dec. 31, 2022
shares
|
Dec. 31, 2021
USD ($)
|
Apr. 20, 2021
USD ($)
|
Apr. 30, 2015 |
|
Class of Stock [Line Items] | |||||||||||
Number of shares authorized for repurchase | $ 350,000 | ||||||||||
Number of shares available for repurchase | $ 137,972 | ||||||||||
Dividend declared and payable (in usd per share) | $ / shares | $ 0.49 | ||||||||||
Dividends paid (in usd per share) | $ / shares | $ 0.49 | $ 0.49 | $ 0.45 | ||||||||
Payments to noncontrolling interests | $ 0 | $ 14,474 | |||||||||
Purchase of noncontrolling interest | 13,196 | ||||||||||
Forecast | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividends paid (in usd per share) | $ / shares | $ 0.51 | ||||||||||
Subsequent Event | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividend declared and payable (in usd per share) | $ / shares | $ 0.51 | ||||||||||
Graffo Paranaense de Embalagens S/A | |||||||||||
Class of Stock [Line Items] | |||||||||||
Ownership percentage by parent | 67.00% | ||||||||||
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 | 175,000 | 60,000 | |||||||||
Cost of shares repurchased | $ 10,576 | $ 3,410 | |||||||||
Capital in Excess of Stated Value | |||||||||||
Class of Stock [Line Items] | |||||||||||
Purchase of noncontrolling interest | $ 7,080 | ||||||||||
Accelerated Share Repurchase Program | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of shares repurchased (in shares) | shares | 0 | 0 |
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 | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | $ 28,814 | $ 5,753 |
Other asset impairments | 0 | 6,389 |
Restructuring and asset impairment charges | 28,814 | 12,142 |
Consumer Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Other asset impairments | 676 | |
Industrial Paper Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Other asset impairments | 5,713 | |
Operating Segments | Consumer Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 1,576 | 1,635 |
Operating Segments | Industrial Paper Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 24,544 | 1,348 |
Operating Segments | All Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 1,157 | 78 |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 1,537 | 2,692 |
Severance and termination benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 5,516 | 2,099 |
Asset impairments | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | 19,193 | 445 |
Other costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and restructuring-related asset impairment charges | $ 4,105 | $ 3,209 |
Restructuring and Asset Impairments - Restructuring Accrual Activity (Details) $ in Thousands |
3 Months Ended |
---|---|
Apr. 02, 2023
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2022 | $ 16,069 |
2023 charges | 28,814 |
Cash payments | (8,924) |
Asset writedowns/disposals | (19,027) |
Foreign currency translation | 25 |
Liability at April 2, 2023 | 16,957 |
Severance and Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2022 | 14,677 |
2023 charges | 5,516 |
Cash payments | (6,380) |
Asset writedowns/disposals | 0 |
Foreign currency translation | 14 |
Liability at April 2, 2023 | 13,827 |
Asset Impairments/ Disposal of Assets | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2022 | 0 |
2023 charges | 19,193 |
Cash payments | (166) |
Asset writedowns/disposals | (19,027) |
Foreign currency translation | 0 |
Liability at April 2, 2023 | 0 |
Other Costs | |
Restructuring Reserve [Roll Forward] | |
Liability at December 31, 2022 | 1,392 |
2023 charges | 4,105 |
Cash payments | (2,378) |
Asset writedowns/disposals | 0 |
Foreign currency translation | 11 |
Liability at April 2, 2023 | $ 3,130 |
Restructuring and Asset Impairments - Additional Information (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023
USD ($)
employee
|
Apr. 03, 2022
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||
Future additional charges expected to be recognized | $ 5,200 | |
Other asset impairments | $ 0 | $ 6,389 |
Industrial Paper Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Other asset impairments | 5,713 | |
Consumer Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Other asset impairments | $ 676 | |
Organizational effectiveness efforts | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of eliminated positions (position) | employee | 159 |
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | $ 2,072,797 | [1] | $ 1,849,541 | ||
Other comprehensive (loss)/income | 35,238 | 3,447 | |||
Ending balance | 2,205,565 | 1,918,931 | |||
Foreign Currency Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (338,316) | (269,076) | |||
Other comprehensive income/(loss) before reclassifications | 31,569 | (185) | |||
Other comprehensive (loss)/income | 31,569 | (185) | |||
Ending balance | (306,747) | (269,261) | |||
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 | 0 | 0 | |||
Defined Benefit Pension Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (90,973) | (91,397) | |||
Other comprehensive income/(loss) before reclassifications | (393) | (971) | |||
Other comprehensive (loss)/income | 916 | 191 | |||
Ending balance | (90,057) | (91,206) | |||
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 | 1,309 | 1,162 | |||
Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (794) | 1,048 | |||
Other comprehensive income/(loss) before reclassifications | 2,645 | 5,119 | |||
Other comprehensive (loss)/income | 2,514 | 2,550 | |||
Ending balance | 1,720 | 3,598 | |||
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 | 300 | 85 | |||
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 | (431) | (2,654) | |||
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (430,083) | (359,425) | |||
Other comprehensive income/(loss) before reclassifications | 33,821 | 3,963 | |||
Other comprehensive (loss)/income | 34,999 | 2,556 | |||
Ending balance | (395,084) | (356,869) | |||
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 | 300 | 85 | |||
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 | $ 878 | $ (1,492) | |||
|
Accumulated Other Comprehensive Loss - Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | $ 1,729,783 | $ 1,770,982 |
Cost of sales | (1,355,355) | (1,399,417) |
(Loss)/Income before income taxes | 193,320 | 148,672 |
Provision for income taxes | (46,912) | (35,289) |
Net income | 148,264 | 115,607 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | 1,062 | 566 |
Cost of sales | (486) | 3,155 |
Net income | (878) | 1,492 |
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 | 576 | 3,721 |
Provision for income taxes | (145) | (1,067) |
Net income | 431 | 2,654 |
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 | (1,757) | (1,527) |
Provision for income taxes | 448 | 365 |
Net income | (1,309) | (1,162) |
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 | (686) | (356) |
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 | (1,071) | (1,171) |
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 | 1,062 | 566 |
Cost of sales | (454) | (695) |
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 |
Cost of sales | $ (32) | $ 3,850 |
Accumulated Other Comprehensive Loss - Before and After Tax Amounts for Comprehensive Income (Loss) Components (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income/ (loss) | $ 35,238 | $ 3,447 |
Foreign Currency Items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive (loss)/income before reclassifications before tax | 31,569 | (185) |
Other comprehensive (loss)/income before reclassifications, tax | 0 | 0 |
Other comprehensive (loss)/income before reclassifications, net of tax | 31,569 | (185) |
Defined benefit pension items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive (loss)/income before reclassifications before tax | (760) | (1,276) |
Other comprehensive (loss)/income before reclassifications, tax | 367 | 305 |
Other comprehensive (loss)/income before reclassifications, net of tax | (393) | (971) |
Other comprehensive income/(loss) before tax | 997 | 251 |
Other comprehensive income/(loss), tax | (81) | (60) |
Other comprehensive income/ (loss) | 916 | 191 |
Defined benefit pension items | Net Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 1,757 | 1,527 |
Amounts reclassified from accumulated other comprehensive income/(loss), tax | (448) | (365) |
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 1,309 | 1,162 |
Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive (loss)/income before reclassifications before tax | 3,536 | 7,179 |
Other comprehensive (loss)/income before reclassifications, tax | (891) | (2,060) |
Other comprehensive (loss)/income before reclassifications, net of tax | 2,645 | 5,119 |
Other comprehensive income/(loss) before tax | 3,361 | 3,575 |
Other comprehensive income/(loss), tax | (847) | (1,025) |
Other comprehensive income/ (loss) | 2,514 | 2,550 |
Cash Flow Hedges | Fixed Assets | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | 401 | 117 |
Amounts reclassified from accumulated other comprehensive income/(loss), tax | (101) | (32) |
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | 300 | 85 |
Cash Flow Hedges | Net Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income/(loss) before tax | (576) | (3,721) |
Amounts reclassified from accumulated other comprehensive income/(loss), tax | 145 | 1,067 |
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax | (431) | (2,654) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income/(loss) before tax | 35,927 | 3,641 |
Other comprehensive income/(loss), tax | (928) | (1,085) |
Other comprehensive income/ (loss) | $ 34,999 | $ 2,556 |
Goodwill and Other Intangible Assets - Changes in Goodwill by Segment (Details) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Apr. 02, 2023
USD ($)
| ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | $ 1,675,311 | [1] | ||
Dispositions | (3,042) | |||
Foreign currency translation | 8,286 | |||
Measurement period adjustments | (1,008) | |||
Goodwill, ending balance | 1,679,547 | |||
Consumer Packaging | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 898,625 | |||
Dispositions | 0 | |||
Foreign currency translation | 2,145 | |||
Measurement period adjustments | 439 | |||
Goodwill, ending balance | 901,209 | |||
Industrial Paper Packaging | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 394,826 | |||
Dispositions | (3,042) | |||
Foreign currency translation | 5,520 | |||
Measurement period adjustments | (1,447) | |||
Goodwill, ending balance | 395,857 | |||
All Other | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 381,860 | |||
Dispositions | 0 | |||
Foreign currency translation | 621 | |||
Measurement period adjustments | 0 | |||
Goodwill, ending balance | $ 382,481 | |||
|
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
Dec. 31, 2022 |
[1] | |||
Goodwill [Line Items] | ||||||
Impairment of goodwill | $ 0 | |||||
Goodwill | 1,679,547,000 | $ 1,675,311,000 | ||||
Indefinite-lived intangible assets | 0 | |||||
Aggregate amortization expense | 21,164,000 | $ 18,800,000 | ||||
Amortization expense on other intangible assets in 2023 | 81,900,000 | |||||
Amortization expense on other intangible assets in 2024 | 74,000,000 | |||||
Amortization expense on other intangible assets in 2025 | 64,900,000 | |||||
Amortization expense on other intangible assets in 2026 | 61,600,000 | |||||
Amortization expense on other intangible assets in 2027 | $ 60,100,000 | |||||
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] | ||||||
Goodwill | $ 62,963,000 | |||||
Protexic | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 29,051,000 | |||||
|
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands |
Apr. 02, 2023 |
Dec. 31, 2022 |
|||
---|---|---|---|---|---|
Finite-Lived Intangible Assets [Line Items] | |||||
Total Other Intangible Assets, gross | $ 1,218,902 | $ 1,220,196 | |||
Total Accumulated Amortization | (501,118) | (478,598) | |||
Other Intangible Assets, net | 717,784 | 741,598 | [1] | ||
Patents | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Total Other Intangible Assets, gross | 29,301 | 29,303 | |||
Total Accumulated Amortization | (18,296) | (17,889) | |||
Customer lists | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Total Other Intangible Assets, gross | 1,093,534 | 1,092,232 | |||
Total Accumulated Amortization | (438,067) | (417,034) | |||
Trade names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Total Other Intangible Assets, gross | 32,940 | 34,220 | |||
Total Accumulated Amortization | (16,568) | (15,892) | |||
Proprietary technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Total Other Intangible Assets, gross | 56,851 | 57,720 | |||
Total Accumulated Amortization | (25,709) | (25,113) | |||
Other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Total Other Intangible Assets, gross | 6,276 | 6,721 | |||
Total Accumulated Amortization | $ (2,478) | $ (2,670) | |||
|
Supply Chain Financing (Details) - USD ($) $ in Thousands |
Apr. 02, 2023 |
Dec. 31, 2022 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Payable to suppliers | $ 51,884 | $ 52,415 |
Notes payable and current portion of long-term debt | $ 1,350 | $ 63,448 |
Financial Instruments and Derivatives - Carrying Amount and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Apr. 02, 2023 |
Dec. 31, 2022 |
---|---|---|
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net of current portion | $ 2,717,891 | $ 2,719,783 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net of current portion | $ 2,551,610 | $ 2,477,884 |
Financial Instruments and Derivatives - Additional Information (Details) |
3 Months Ended | |||
---|---|---|---|---|
Jan. 11, 2022
USD ($)
|
Apr. 02, 2023
USD ($)
MMBTU
t
|
Dec. 31, 2022
USD ($)
|
Jan. 21, 2022
USD ($)
bank
|
|
Derivative [Line Items] | ||||
Derivative instrument, number of counter-parties | bank | 2 | |||
Gain on the settlement recognized | $ 5,201,000 | |||
Total fair value of other derivatives not designated as hedging instruments | $ (14,691,000) | $ (8,692,000) | ||
Unsecured Debt | ||||
Derivative [Line Items] | ||||
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, loss | (218,000) | (172,000) | ||
Commodity loss expected to be reclassified to the income statement during the next 12 months | (178,000) | |||
Fair value of foreign currency cash flow hedges, gain (loss) | 2,560,000 | (299,000) | ||
Foreign currency loss expected to be reclassified to the income statement during the next 12 months | $ 2,560,000 | |||
Natural Gas Swaps | Derivatives Designated as Hedging Instruments | ||||
Derivative [Line Items] | ||||
Approximate amount of commodity covered by swap contracts outstanding (in MMBTUs) | MMBTU | 8,300,000 | |||
Anticipated usage percentage covered by a swap contract for the next fiscal year (percent) | 78.00% | |||
Anticipated usage percentage covered by a swap contract for year two (percent) | 54.00% | |||
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 | 100,000 | |||
Anticipated usage percentage covered by a swap contract for the current fiscal year (percent) | 1.00% | |||
Approximate amount of commodity covered by swap contracts outstanding (in tons) | t | 715 | |||
Forward contracts | Cash Flow Hedging | Derivatives Designated as Hedging Instruments | ||||
Derivative [Line Items] | ||||
Fair value of foreign currency cash flow hedges, gain (loss) | $ (16,000) | $ (564,000) | ||
Foreign currency loss expected to be reclassified to the income statement during the next 12 months | (22,000) | |||
Foreign currency loss reclassified to the income statement | $ (401,000) |
Financial Instruments and Derivatives - Net Positions of Foreign Contracts (Details) - Apr. 02, 2023 ₺ in Thousands, € in Thousands, £ in Thousands, zł in Thousands, R$ in Thousands, Kč in Thousands, $ in Thousands, $ in Thousands, $ in Thousands |
COP ($) |
MXN ($) |
PLN (zł) |
CZK (Kč) |
CAD ($) |
EUR (€) |
TRY (₺) |
BRL (R$) |
GBP (£) |
---|---|---|---|---|---|---|---|---|---|
Cash Flow Hedging | Derivatives Designated as Hedging Instruments | Purchase | |||||||||
Derivative [Line Items] | |||||||||
Net purchase/(sell) position of derivatives | $ 23,959,866 | $ 419,558 | zł 93,474 | Kč 60,331 | $ 18,828 | € 9,974 | ₺ 7,478 | R$ 5,202 | £ 4,701 |
Financial Instruments and Derivatives - Net Positions of Foreign Contracts Non-Designated Derivatives (Details) - Apr. 02, 2023 ₺ in Thousands, Rp in Thousands, $ in Thousands, $ in Thousands, $ in Thousands |
COP ($) |
MXN ($) |
CAD ($) |
TRY (₺) |
IDR (Rp) |
---|---|---|---|---|---|
Derivatives Not Designated as Hedging Instruments | Purchase | |||||
Derivative [Line Items] | |||||
Purchase position of derivatives | $ 20,729,300 | $ 563,953 | $ 8,104 | ₺ 11,394 | Rp 23,069,325 |
Financial Instruments and Derivatives - Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands |
Apr. 02, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivatives Designated as Hedging Instruments | Commodity contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 11 | $ 10 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 8 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (189) | (155) |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (39) | (35) |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 5,176 | 1,251 |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 6 | 0 |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (2,637) | (2,114) |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 13 | 5 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 85 | 251 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (13,456) | (8,599) |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (1,389) | (295) |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 109 | 115 |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ (54) | $ (169) |
Financial Instruments and Derivatives - Effect of Derivative Instruments on Financial Performance (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | $ 3,613 | $ 955 |
Foreign exchange contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized | 2,137 | 1,343 |
Foreign exchange contracts | Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | 1,062 | 566 |
Foreign exchange contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | (454) | (695) |
Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | (77) | 6,224 |
Commodity contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized | (9,708) | 6,992 |
Commodity contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income | $ (32) | $ 3,850 |
Financial Instruments and Derivatives - Reclassification of Gains and Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | $ 1,729,783 | $ 1,770,982 |
Cost of sales | (1,355,355) | (1,399,417) |
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | 1,062 | 566 |
Cost of sales | (486) | 3,155 |
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 | 1,062 | 566 |
Cost of sales | (454) | (695) |
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 |
Cost of sales | $ (32) | $ 3,850 |
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands |
Apr. 02, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ (217) | $ (172) |
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 2,545 | (863) |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (14,747) | (8,638) |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 55 | (54) |
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 | |
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 |
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 |
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 |
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 |
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 | |
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 |
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 |
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 |
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 |
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 | |
Level 2 | Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (217) | (172) |
Level 2 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 2,545 | (863) |
Level 2 | Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (14,747) | (8,638) |
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 | 55 | (54) |
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 | 0 | |
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 |
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 |
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 |
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 |
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 | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 687 | $ 826 |
Interest cost | 4,294 | 2,710 |
Expected return on plan assets | (2,444) | (2,865) |
Amortization of prior service cost | 219 | 221 |
Amortization of net actuarial loss | 1,045 | 1,135 |
Effect of settlement loss | 686 | 356 |
Net periodic benefit cost | 4,487 | 2,383 |
Retiree Health and Life Insurance Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 62 | 82 |
Interest cost | 130 | 64 |
Expected return on plan assets | (79) | (112) |
Amortization of net actuarial loss | (193) | (185) |
Net periodic benefit cost | $ (80) | $ (151) |
Employee Benefit Plans - Additional Information (Details) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Jan. 01, 2022 |
Dec. 31, 2021 |
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions | $ 4,931,000 | $ 6,147,000 | ||
Expected contributions for remainder of fiscal year | $ 10,300,000 | |||
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 | $ 686,000 | 356,000 | ||
Pension Plan | Sonoco Pension Plan for Inactive Participants | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement losses recognized | 686,000 | 356,000 | ||
Pension Plan | Sonoco Retirement Contribution | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions | $ 21,948,000 | |||
Expected contributions for remainder of fiscal year | $ 0 | |||
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 | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 24.30% | 23.70% |
Increase of uncertain tax benefits | $ 798 | |
Possible decrease in reserve for unrecognized tax benefits | $ 260 |
Leases - Additional Information (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023
option
|
Jan. 26, 2022
USD ($)
|
|
Lessee, Lease, Description [Line Items] | ||
Number of renewal options | option | 1 | |
Lease term | 10 years | |
Metal Packaging | ||
Lessee, Lease, Description [Line Items] | ||
Lease liabilities | $ 33,910 | |
Finance lease obligations | $ 46,687 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal terms | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal terms | 5 years |
Leases - Balance Sheet Location and Values of Lease Assets and Lease Liabilities (Details) - USD ($) $ in Thousands |
Apr. 02, 2023 |
Dec. 31, 2022 |
|||
---|---|---|---|---|---|
Leases [Abstract] | |||||
Operating lease assets | $ 289,017 | $ 296,781 | [1] | ||
Finance lease assets | 102,216 | 103,467 | |||
Total lease assets | 391,233 | 400,248 | |||
Current operating lease liabilities | 51,537 | 52,306 | |||
Current finance lease liabilities | 19,606 | 19,015 | |||
Total current lease liabilities | 71,143 | 71,321 | |||
Noncurrent operating lease liabilities | 243,714 | 250,994 | [1] | ||
Noncurrent finance lease liabilities | 81,732 | 83,905 | |||
Total noncurrent lease liabilities | 325,446 | 334,899 | |||
Total lease liabilities | $ 396,589 | $ 406,220 | |||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets | |||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other | Accrued expenses and other | |||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Notes payable and current portion of long-term debt | Notes payable and current portion of long-term debt | |||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-Term Debt, Excluding Current Maturities | Long-Term Debt, Excluding Current Maturities | |||
|
Leases - Components of Company's Lease Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Leases [Abstract] | ||
Operating lease cost | $ 13,411 | $ 12,797 |
Amortization of lease asset | 3,270 | 2,711 |
Interest on lease liabilities | 1,194 | 966 |
Variable lease cost | 9,378 | 7,355 |
Total lease cost | $ 27,253 | $ 23,829 |
Leases - Other Lease Related Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used by operating leases | $ 13,561 | $ 13,152 |
Operating cash flows used by finance leases | 1,194 | 966 |
Financing cash flows used by finance leases | 4,581 | 2,643 |
Leased assets obtained in exchange for new operating lease liabilities | 6,513 | 19,520 |
Leased assets obtained in exchange for new finance lease liabilities | 2,805 | 5,910 |
Modification to leased assets for increase in operating lease liabilities | 3,957 | 1,484 |
Modification to leased assets for increase in finance lease liabilities | 0 | 290 |
Termination reclasses to decrease operating lease assets | (2,029) | (1,913) |
Termination reclasses to decrease operating lease liabilities | (2,090) | (1,828) |
Termination reclasses to decrease finance lease assets | (962) | 0 |
Termination reclasses to decrease finance lease liabilities | $ (12) | $ 0 |
Revenue Recognition - Additional Information (Details) |
3 Months Ended |
---|---|
Apr. 02, 2023 | |
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 |
Apr. 02, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Revenue from Contract with Customer [Abstract] | |||
Contract Assets | $ 60,047 | $ 56,008 | $ 51,106 |
Contract Liabilities | $ (23,538) | $ (22,423) | $ (18,993) |
Revenue Recognition - Significant Changes in the Contract Assets and Liabilities Balances (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Apr. 02, 2023 |
Dec. 31, 2022 |
|
Contract Asset | ||
Beginning Balance | $ 56,008 | $ 51,106 |
Acquired as part of a business combination | 0 | 8,107 |
Increases due to rights to consideration for customer specific goods produced, but not billed during the period | 60,047 | 56,008 |
Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combinations | (56,008) | (59,213) |
Ending Balance | 60,047 | 56,008 |
Contract Liability | ||
Beginning Balance | (22,423) | (18,993) |
Acquired as part of a business combination | 0 | (5,418) |
Revenue deferred or rebates accrued | (14,142) | (57,510) |
Recognized as revenue | 3,128 | 18,201 |
Rebates paid to customers | 9,899 | 41,297 |
Ending Balance | $ (23,538) | $ (22,423) |
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,729,783 | $ 1,770,982 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,225,698 | 1,237,774 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 244,699 | 261,122 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 55,755 | 58,378 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 83,297 | 99,545 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 120,334 | 114,163 |
Consumer Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 909,278 | 868,098 |
Consumer Packaging | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 696,098 | 654,414 |
Consumer Packaging | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 114,606 | 120,170 |
Consumer Packaging | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 28,803 | 31,208 |
Consumer Packaging | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 24,136 | 25,634 |
Consumer Packaging | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 45,635 | 36,672 |
Industrial Paper Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 615,855 | 699,129 |
Industrial Paper Packaging | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 360,780 | 417,286 |
Industrial Paper Packaging | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 107,808 | 116,827 |
Industrial Paper Packaging | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 26,952 | 27,170 |
Industrial Paper Packaging | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 58,831 | 73,619 |
Industrial Paper Packaging | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 61,484 | 64,227 |
All Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 204,650 | 203,755 |
All Other | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 168,820 | 166,074 |
All Other | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 22,285 | 24,125 |
All Other | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
All Other | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 330 | 292 |
All Other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 13,215 | $ 13,264 |
Segment Reporting - Additional Information (Details) |
3 Months Ended |
---|---|
Apr. 02, 2023
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting - Segment Financial Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,729,783 | $ 1,770,982 |
Operating profit | 229,648 | 169,061 |
Restructuring/Asset impairment charges | (28,814) | (12,142) |
Amortization of Intangible Assets | (21,164) | (18,800) |
Other non-GAAP income/(charges), net | 66,205 | (60,790) |
Consumer Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 909,278 | 868,098 |
Industrial Paper Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 615,855 | 699,129 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 204,650 | 203,755 |
Operating Segments | Consumer Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 909,278 | 868,098 |
Operating profit | 91,821 | 173,609 |
Operating Segments | Industrial Paper Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 615,855 | 699,129 |
Operating profit | 94,367 | 72,660 |
Operating Segments | All Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 204,650 | 203,755 |
Operating profit | 27,233 | 14,524 |
Intersegment Sales | ||
Segment Reporting Information [Line Items] | ||
Net sales | 44,047 | 37,750 |
Intersegment Sales | Consumer Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,055 | 1,411 |
Intersegment Sales | Industrial Paper Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 38,720 | 33,638 |
Intersegment Sales | All Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,272 | 2,701 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Operating profit |
Commitments and Contingencies (Details) - USD ($) $ in Thousands |
137 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Dec. 31, 2022 |
|
Site Contingency [Line Items] | ||
Environmental accrual | $ 7,185 | $ 7,265 |
Multiple Sites | ||
Site Contingency [Line Items] | ||
Environmental accrual | 1,790 | 1,840 |
Tegrant Holding Corporation | ||
Site Contingency [Line Items] | ||
Payment towards remediation of sites | 2,005 | |
Tegrant Holding Corporation | Spartanburg, South Carolina Site | ||
Site Contingency [Line Items] | ||
Environmental accrual | $ 5,395 | $ 5,425 |
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