Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II. Other Information
Item 1.Legal Proceedings.
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 6.Exhibits.
Exhibits
EX-15
ex15q12019.htm
EX-31
ex31q12019.htm
EX-32
ex32q12019.htm
Sonoco Products Earnings 2019-03-31
SON 10Q Quarterly Report
Balance Sheet
Income Statement
Cash Flow
Document
FALSEMar 31, 20192019Q1SON0000091767--12-31Large Accelerated FilerFALSEFALSE300,000300,000100,03699,829100,03699,829The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.P3YP3YP1Y00000917672019-01-012019-03-31xbrli:shares00000917672019-04-19iso4217:USD00000917672019-03-3100000917672018-12-3100000917672018-01-012018-04-01iso4217:USDxbrli:shares00000917672017-12-310000091767us-gaap:CommonStockMember2017-12-310000091767us-gaap:AdditionalPaidInCapitalMember2017-12-310000091767us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-12-310000091767us-gaap:RetainedEarningsMember2017-12-310000091767us-gaap:NoncontrollingInterestMember2017-12-310000091767us-gaap:RetainedEarningsMember2018-01-012018-04-010000091767us-gaap:NoncontrollingInterestMember2018-01-012018-04-010000091767us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-04-010000091767us-gaap:CommonStockMember2018-01-012018-04-010000091767us-gaap:AdditionalPaidInCapitalMember2018-01-012018-04-0100000917672018-01-010000091767us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-010000091767us-gaap:RetainedEarningsMember2018-01-0100000917672018-04-010000091767us-gaap:CommonStockMember2018-04-010000091767us-gaap:AdditionalPaidInCapitalMember2018-04-010000091767us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-04-010000091767us-gaap:RetainedEarningsMember2018-04-010000091767us-gaap:NoncontrollingInterestMember2018-04-010000091767us-gaap:CommonStockMember2018-12-310000091767us-gaap:AdditionalPaidInCapitalMember2018-12-310000091767us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310000091767us-gaap:RetainedEarningsMember2018-12-310000091767us-gaap:NoncontrollingInterestMember2018-12-310000091767us-gaap:RetainedEarningsMember2019-01-012019-03-310000091767us-gaap:NoncontrollingInterestMember2019-01-012019-03-310000091767us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310000091767us-gaap:CommonStockMember2019-01-012019-03-310000091767us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-3100000917672019-01-010000091767us-gaap:RetainedEarningsMember2019-01-010000091767us-gaap:CommonStockMember2019-03-310000091767us-gaap:AdditionalPaidInCapitalMember2019-03-310000091767us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310000091767us-gaap:RetainedEarningsMember2019-03-310000091767us-gaap:NoncontrollingInterestMember2019-03-310000091767us-gaap:AccountingStandardsUpdate201602Member2019-01-010000091767us-gaap:RetainedEarningsMemberus-gaap:AccountingStandardsUpdate201602Member2019-01-01xbrli:pure0000091767son:ConitexSonocoHoldingBviLtdMember2018-10-010000091767son:ConitexSonocoAndCompositubMember2019-02-012019-02-280000091767son:HighlandPackagingSolutionMember2018-04-122018-04-120000091767us-gaap:ScenarioForecastMemberson:HighlandPackagingSolutionMember2019-04-122019-04-120000091767us-gaap:ScenarioForecastMemberson:HighlandPackagingSolutionMember2020-04-122020-04-120000091767son:ConitexSonocoMember2019-01-012019-03-310000091767son:CompositubMember2019-01-012019-03-310000091767son:HighlandPackagingSolutionMember2019-01-012019-03-3100000917672016-02-1000000917672016-01-012016-12-3100000917672018-01-012018-12-3100000917672017-01-012017-12-310000091767son:TaxWithholdingObligationsMember2019-01-012019-03-310000091767son:TaxWithholdingObligationsMember2018-01-012018-04-0100000917672019-03-082019-03-0800000917672019-02-132019-02-130000091767us-gaap:SubsequentEventMember2019-04-172019-04-170000091767son:Actions2019YearMember2019-01-012019-03-310000091767son:Actions2019YearMember2018-01-012018-04-010000091767son:Actions2018YearMember2019-01-012019-03-310000091767son:Actions2018YearMember2018-01-012018-04-010000091767son:Actions2017YearMember2019-01-012019-03-310000091767son:Actions2017YearMember2018-01-012018-04-01son:positions0000091767son:Actions2019YearMember2019-03-310000091767son:ConsumerPackagingMemberson:Actions2019YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2019-01-012019-03-310000091767son:ConsumerPackagingMemberson:Actions2019YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberson:Actions2019YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberson:Actions2019YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2019-03-310000091767son:ProtectiveSolutionsMemberson:Actions2019YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2019-01-012019-03-310000091767son:ProtectiveSolutionsMemberson:Actions2019YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2019-03-310000091767us-gaap:CorporateNonSegmentMemberson:Actions2019YearMemberus-gaap:EmployeeSeveranceMember2019-01-012019-03-310000091767us-gaap:CorporateNonSegmentMemberson:Actions2019YearMemberus-gaap:EmployeeSeveranceMember2019-03-310000091767son:AssetImpairmentDisposalOfAssetsMemberson:ConsumerPackagingMemberson:Actions2019YearMemberus-gaap:OperatingSegmentsMember2019-01-012019-03-310000091767son:AssetImpairmentDisposalOfAssetsMemberson:ConsumerPackagingMemberson:Actions2019YearMemberus-gaap:OperatingSegmentsMember2019-03-310000091767son:ConsumerPackagingMemberson:Actions2019YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2019-01-012019-03-310000091767son:ConsumerPackagingMemberson:Actions2019YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2019-03-310000091767son:DisplayandPackagingMemberson:Actions2019YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2019-01-012019-03-310000091767son:DisplayandPackagingMemberson:Actions2019YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberson:Actions2019YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberson:Actions2019YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2019-03-310000091767son:Actions2019YearMemberus-gaap:EmployeeSeveranceMember2018-12-310000091767son:AssetImpairmentDisposalOfAssetsMemberson:Actions2019YearMember2018-12-310000091767son:Actions2019YearMemberus-gaap:OtherRestructuringMember2018-12-310000091767son:Actions2019YearMember2018-12-310000091767son:Actions2019YearMemberus-gaap:EmployeeSeveranceMember2019-01-012019-03-310000091767son:AssetImpairmentDisposalOfAssetsMemberson:Actions2019YearMember2019-01-012019-03-310000091767son:Actions2019YearMemberus-gaap:OtherRestructuringMember2019-01-012019-03-310000091767son:Actions2019YearMemberus-gaap:EmployeeSeveranceMember2019-03-310000091767son:AssetImpairmentDisposalOfAssetsMemberson:Actions2019YearMember2019-03-310000091767son:Actions2019YearMemberus-gaap:OtherRestructuringMember2019-03-31son:facility0000091767stpr:ALson:Actions2018YearMember2019-01-012019-03-310000091767son:Actions2018YearMembercountry:CA2018-01-012018-12-310000091767country:IDson:Actions2018YearMember2018-01-012018-12-310000091767country:RUson:Actions2018YearMember2018-01-012018-12-310000091767country:NOson:Actions2018YearMember2018-01-012018-12-31son:position0000091767son:Actions2018YearMember2018-12-310000091767son:ConsumerPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2019-01-012019-03-310000091767son:ConsumerPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2018-01-012018-04-010000091767son:ConsumerPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2019-03-310000091767son:DisplayandPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2019-01-012019-03-310000091767son:DisplayandPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2018-01-012018-04-010000091767son:DisplayandPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2018-01-012018-04-010000091767son:PaperAndIndustrialConvertedProductsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2019-03-310000091767son:ProtectiveSolutionsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2019-01-012019-03-310000091767son:ProtectiveSolutionsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2018-01-012018-04-010000091767son:ProtectiveSolutionsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2019-03-310000091767us-gaap:CorporateNonSegmentMemberson:Actions2018YearMemberus-gaap:EmployeeSeveranceMember2019-01-012019-03-310000091767us-gaap:CorporateNonSegmentMemberson:Actions2018YearMemberus-gaap:EmployeeSeveranceMember2018-01-012018-04-010000091767us-gaap:CorporateNonSegmentMemberson:Actions2018YearMemberus-gaap:EmployeeSeveranceMember2019-03-310000091767son:AssetImpairmentDisposalOfAssetsMemberson:ConsumerPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMember2019-01-012019-03-310000091767son:AssetImpairmentDisposalOfAssetsMemberson:ConsumerPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMember2018-01-012018-04-010000091767son:AssetImpairmentDisposalOfAssetsMemberson:ConsumerPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMember2019-03-310000091767son:DisplayandPackagingMemberson:AssetImpairmentDisposalOfAssetsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMember2019-01-012019-03-310000091767son:DisplayandPackagingMemberson:AssetImpairmentDisposalOfAssetsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMember2018-01-012018-04-010000091767son:DisplayandPackagingMemberson:AssetImpairmentDisposalOfAssetsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMember2019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberson:AssetImpairmentDisposalOfAssetsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMember2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberson:AssetImpairmentDisposalOfAssetsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMember2018-01-012018-04-010000091767son:PaperAndIndustrialConvertedProductsMemberson:AssetImpairmentDisposalOfAssetsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMember2019-03-310000091767son:ProtectiveSolutionsMemberson:AssetImpairmentDisposalOfAssetsMemberson:Actions2018YearMember2019-01-012019-03-310000091767son:ProtectiveSolutionsMemberson:AssetImpairmentDisposalOfAssetsMemberson:Actions2018YearMember2018-01-012018-04-010000091767son:ProtectiveSolutionsMemberson:AssetImpairmentDisposalOfAssetsMemberson:Actions2018YearMember2019-03-310000091767son:ConsumerPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2019-01-012019-03-310000091767son:ConsumerPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2018-01-012018-04-010000091767son:ConsumerPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2019-03-310000091767son:DisplayandPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2019-01-012019-03-310000091767son:DisplayandPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2018-01-012018-04-010000091767son:DisplayandPackagingMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2018-01-012018-04-010000091767son:PaperAndIndustrialConvertedProductsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2019-03-310000091767son:ProtectiveSolutionsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2019-01-012019-03-310000091767son:ProtectiveSolutionsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2018-01-012018-04-010000091767son:ProtectiveSolutionsMemberson:Actions2018YearMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2019-03-310000091767us-gaap:CorporateNonSegmentMemberson:Actions2018YearMemberus-gaap:OtherRestructuringMember2019-01-012019-03-310000091767us-gaap:CorporateNonSegmentMemberson:Actions2018YearMemberus-gaap:OtherRestructuringMember2018-01-012018-04-010000091767us-gaap:CorporateNonSegmentMemberson:Actions2018YearMemberus-gaap:OtherRestructuringMember2019-03-310000091767son:Actions2018YearMember2019-03-310000091767son:Actions2018YearMemberus-gaap:EmployeeSeveranceMember2018-12-310000091767son:AssetImpairmentDisposalOfAssetsMemberson:Actions2018YearMember2018-12-310000091767son:Actions2018YearMemberus-gaap:OtherRestructuringMember2018-12-310000091767son:Actions2018YearMemberus-gaap:EmployeeSeveranceMember2019-01-012019-03-310000091767son:AssetImpairmentDisposalOfAssetsMemberson:Actions2018YearMember2019-01-012019-03-310000091767son:Actions2018YearMemberus-gaap:OtherRestructuringMember2019-01-012019-03-310000091767son:Actions2018YearMemberus-gaap:EmployeeSeveranceMember2019-03-310000091767son:AssetImpairmentDisposalOfAssetsMemberson:Actions2018YearMember2019-03-310000091767son:Actions2018YearMemberus-gaap:OtherRestructuringMember2019-03-310000091767country:IDson:SaleOfFixedAssetsAndInventoryMemberson:Actions2018YearMember2018-01-012018-12-310000091767country:IDson:SaleOfFixedAssetsAndInventoryMemberson:Actions2018YearMember2018-12-310000091767son:ConsumerPackagingMemberson:Actions2017YearMemberus-gaap:OperatingSegmentsMember2019-01-012019-03-310000091767son:ConsumerPackagingMemberson:Actions2017YearMemberus-gaap:OperatingSegmentsMember2018-01-012018-04-010000091767son:DisplayandPackagingMemberson:Actions2017YearMemberus-gaap:OperatingSegmentsMember2019-01-012019-03-310000091767son:DisplayandPackagingMemberson:Actions2017YearMemberus-gaap:OperatingSegmentsMember2018-01-012018-04-010000091767son:PaperAndIndustrialConvertedProductsMemberson:Actions2017YearMemberus-gaap:OperatingSegmentsMember2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberson:Actions2017YearMemberus-gaap:OperatingSegmentsMember2018-01-012018-04-010000091767son:ProtectiveSolutionsMemberson:Actions2017YearMemberus-gaap:OperatingSegmentsMember2019-01-012019-03-310000091767son:ProtectiveSolutionsMemberson:Actions2017YearMemberus-gaap:OperatingSegmentsMember2018-01-012018-04-010000091767son:Actions2017YearMember2019-03-310000091767son:Actions2017YearMember2018-12-310000091767us-gaap:AccumulatedTranslationAdjustmentMember2017-12-310000091767us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2017-12-310000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2017-12-310000091767us-gaap:AccumulatedTranslationAdjustmentMember2018-01-012018-04-010000091767us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-01-012018-04-010000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2018-01-012018-04-010000091767us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberson:NetIncomeMember2018-01-012018-04-010000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberson:NetIncomeMember2018-01-012018-04-010000091767us-gaap:AccumulatedOtherComprehensiveIncomeMemberson:NetIncomeMember2018-01-012018-04-010000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:PropertyPlantAndEquipmentMember2018-01-012018-04-010000091767us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:PropertyPlantAndEquipmentMember2018-01-012018-04-010000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2018-01-010000091767us-gaap:AccumulatedTranslationAdjustmentMember2018-04-010000091767us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-04-010000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2018-04-010000091767us-gaap:AccumulatedTranslationAdjustmentMember2018-12-310000091767us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-12-310000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2018-12-310000091767us-gaap:AccumulatedTranslationAdjustmentMember2019-01-012019-03-310000091767us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-01-012019-03-310000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-01-012019-03-310000091767us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberson:NetIncomeMember2019-01-012019-03-310000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberson:NetIncomeMember2019-01-012019-03-310000091767us-gaap:AccumulatedOtherComprehensiveIncomeMemberson:NetIncomeMember2019-01-012019-03-310000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:PropertyPlantAndEquipmentMember2019-01-012019-03-310000091767us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:PropertyPlantAndEquipmentMember2019-01-012019-03-310000091767us-gaap:AccumulatedTranslationAdjustmentMember2019-03-310000091767us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-03-310000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-03-310000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ForeignExchangeContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ForeignExchangeContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-01-012018-04-010000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:CommodityContractMember2019-01-012019-03-310000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:CommodityContractMember2018-01-012018-04-010000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310000091767us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-01-012018-04-010000091767son:AccumulatedDefinedBenefitPlansAdjustmentNetSettlementGainLossIncludingPortionAttributableToNoncontrollingInterestMember2019-01-012019-03-310000091767us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberson:AccumulatedDefinedBenefitPlansAdjustmentNetSettlementGainLossIncludingPortionAttributableToNoncontrollingInterestMember2018-01-012018-04-010000091767son:AccumulatedDefinedBenefitPlansAdjustmentAmortizationOfDefinedBenefitPensionItemsAttributableToParentMember2019-01-012019-03-310000091767us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberson:AccumulatedDefinedBenefitPlansAdjustmentAmortizationOfDefinedBenefitPensionItemsAttributableToParentMember2018-01-012018-04-010000091767us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310000091767us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-01-012018-04-010000091767us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310000091767us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-01-012018-04-010000091767son:ConsumerPackagingMember2018-12-310000091767son:DisplayandPackagingMember2018-12-310000091767son:PaperAndIndustrialConvertedProductsMember2018-12-310000091767son:ProtectiveSolutionsMember2018-12-310000091767son:ConsumerPackagingMember2019-01-012019-03-310000091767son:DisplayandPackagingMember2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMember2019-01-012019-03-310000091767son:ProtectiveSolutionsMember2019-01-012019-03-310000091767son:ConsumerPackagingMember2019-03-310000091767son:DisplayandPackagingMember2019-03-310000091767son:PaperAndIndustrialConvertedProductsMember2019-03-310000091767son:ProtectiveSolutionsMember2019-03-3100000917672018-07-022018-09-300000091767son:DisplayAndPackagingReportingUnitMember2019-03-310000091767us-gaap:PatentsMember2019-03-310000091767us-gaap:PatentsMember2018-12-310000091767us-gaap:CustomerListsMember2019-03-310000091767us-gaap:CustomerListsMember2018-12-310000091767us-gaap:TradeNamesMember2019-03-310000091767us-gaap:TradeNamesMember2018-12-310000091767us-gaap:PatentedTechnologyMember2019-03-310000091767us-gaap:PatentedTechnologyMember2018-12-310000091767us-gaap:UseRightsMember2019-03-310000091767us-gaap:UseRightsMember2018-12-310000091767us-gaap:OtherIntangibleAssetsMember2019-03-310000091767us-gaap:OtherIntangibleAssetsMember2018-12-310000091767srt:MinimumMember2019-01-012019-03-310000091767srt:MaximumMember2019-01-012019-03-310000091767us-gaap:CarryingReportedAmountFairValueDisclosureMember2019-03-310000091767us-gaap:EstimateOfFairValueFairValueDisclosureMember2019-03-310000091767us-gaap:CarryingReportedAmountFairValueDisclosureMember2018-12-310000091767us-gaap:EstimateOfFairValueFairValueDisclosureMember2018-12-31utr:MMBTU0000091767son:NaturalGasSwapsMember2019-01-012019-03-310000091767son:NaturalGasSwapsMember2019-03-31utr:T0000091767son:AluminumSwapsMember2019-01-012019-03-310000091767son:AluminumSwapsMember2019-03-31iso4217:COP0000091767us-gaap:LongMemberus-gaap:CashFlowHedgingMember2019-03-31iso4217:MXNiso4217:PLNiso4217:CADiso4217:CZKiso4217:TRYiso4217:GBPiso4217:SEK0000091767us-gaap:ShortMemberus-gaap:CashFlowHedgingMember2019-03-31iso4217:EURiso4217:RUB0000091767son:ForeignExchangeForwardForConstructionInProgressMember2019-03-310000091767son:ForeignExchangeForwardForConstructionInProgressMember2018-12-310000091767us-gaap:LongMemberus-gaap:NondesignatedMember2019-03-31iso4217:ZAR0000091767us-gaap:NondesignatedMemberus-gaap:ShortMember2019-03-310000091767us-gaap:DesignatedAsHedgingInstrumentMemberson:PrepaidExpensesMemberus-gaap:CommodityContractMember2019-03-310000091767us-gaap:DesignatedAsHedgingInstrumentMemberson:PrepaidExpensesMemberus-gaap:CommodityContractMember2018-12-310000091767us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherAssetsMemberus-gaap:CommodityContractMember2019-03-310000091767us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherAssetsMemberus-gaap:CommodityContractMember2018-12-310000091767us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMemberson:AccruedExpensesAndOtherMember2019-03-310000091767us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMemberson:AccruedExpensesAndOtherMember2018-12-310000091767us-gaap:OtherLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2019-03-310000091767us-gaap:OtherLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2018-12-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberson:PrepaidExpensesMember2019-03-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberson:PrepaidExpensesMember2018-12-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberson:AccruedExpensesAndOtherMember2019-03-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberson:AccruedExpensesAndOtherMember2018-12-310000091767us-gaap:ForeignExchangeContractMemberson:PrepaidExpensesMemberus-gaap:NondesignatedMember2019-03-310000091767us-gaap:ForeignExchangeContractMemberson:PrepaidExpensesMemberus-gaap:NondesignatedMember2018-12-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberson:AccruedExpensesAndOtherMember2019-03-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberson:AccruedExpensesAndOtherMember2018-12-310000091767us-gaap:ForeignExchangeContractMember2019-01-012019-03-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2019-01-012019-03-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2019-01-012019-03-310000091767us-gaap:CommodityContractMember2019-01-012019-03-310000091767us-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2019-01-012019-03-310000091767us-gaap:ForeignExchangeContractMember2018-01-012018-04-010000091767us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2018-01-012018-04-010000091767us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2018-01-012018-04-010000091767us-gaap:CommodityContractMember2018-01-012018-04-010000091767us-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2018-01-012018-04-010000091767us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:CostOfSalesMember2019-01-012019-03-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:NondesignatedMember2019-01-012019-03-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:CostOfSalesMember2018-01-012018-04-010000091767us-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:NondesignatedMember2018-01-012018-04-010000091767us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2019-03-310000091767us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2018-09-300000091767us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CommodityContractMember2018-09-300000091767us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2018-09-300000091767us-gaap:FairValueInputsLevel3Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2018-09-300000091767us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2018-09-300000091767us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-09-300000091767us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel1Member2018-09-300000091767us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-09-300000091767us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:DesignatedAsHedgingInstrumentMember2018-09-300000091767us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2018-09-300000091767us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:NondesignatedMember2018-09-300000091767us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel1Member2018-09-300000091767us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2018-09-300000091767us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMember2018-09-3000000917672018-09-300000091767us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2018-09-300000091767us-gaap:FairValueInputsLevel1Member2018-09-300000091767us-gaap:FairValueInputsLevel2Member2018-09-300000091767us-gaap:FairValueInputsLevel3Member2018-09-300000091767us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2018-12-310000091767us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2017-12-310000091767us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CommodityContractMember2017-12-310000091767us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2017-12-310000091767us-gaap:FairValueInputsLevel3Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2017-12-310000091767us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2017-12-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:DesignatedAsHedgingInstrumentMember2017-12-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel1Member2017-12-310000091767us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2017-12-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:DesignatedAsHedgingInstrumentMember2017-12-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2017-12-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:NondesignatedMember2017-12-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel1Member2017-12-310000091767us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2017-12-310000091767us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMember2017-12-310000091767us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2017-12-310000091767us-gaap:FairValueInputsLevel1Member2017-12-310000091767us-gaap:FairValueInputsLevel2Member2017-12-310000091767us-gaap:FairValueInputsLevel3Member2017-12-310000091767son:SonocoRetirementContributionMembercountry:USus-gaap:PensionPlansDefinedBenefitMember2019-01-012019-03-310000091767us-gaap:PensionPlansDefinedBenefitMember2019-01-012019-03-310000091767us-gaap:PensionPlansDefinedBenefitMember2018-01-012018-04-010000091767us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2019-01-012019-03-310000091767us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2018-01-012018-04-010000091767son:SonocoRetirementContributionMemberus-gaap:PensionPlansDefinedBenefitMember2019-01-012019-03-310000091767son:SonocoRetirementContributionMemberus-gaap:PensionPlansDefinedBenefitMember2018-01-012018-04-010000091767son:SonocoRetirementContributionMemberus-gaap:PensionPlansDefinedBenefitMember2019-03-310000091767us-gaap:InternalRevenueServiceIRSMember2017-03-012017-03-31son:notice_of_proposed_adjustment00000917672017-10-0500000917672017-11-140000091767us-gaap:InternalRevenueServiceIRSMember2017-11-202017-11-200000091767srt:MinimumMember2019-03-310000091767srt:MaximumMember2019-03-310000091767son:ConsumerPackagingMembercountry:US2019-01-012019-03-310000091767son:DisplayandPackagingMembercountry:US2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMembercountry:US2019-01-012019-03-310000091767son:ProtectiveSolutionsMembercountry:US2019-01-012019-03-310000091767srt:EuropeMemberson:ConsumerPackagingMember2019-01-012019-03-310000091767srt:EuropeMemberson:DisplayandPackagingMember2019-01-012019-03-310000091767srt:EuropeMemberson:PaperAndIndustrialConvertedProductsMember2019-01-012019-03-310000091767son:ProtectiveSolutionsMembersrt:EuropeMember2019-01-012019-03-310000091767son:ConsumerPackagingMembercountry:CA2019-01-012019-03-310000091767son:DisplayandPackagingMembercountry:CA2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMembercountry:CA2019-01-012019-03-310000091767son:ProtectiveSolutionsMembercountry:CA2019-01-012019-03-310000091767son:ConsumerPackagingMembersrt:AsiaMember2019-01-012019-03-310000091767son:DisplayandPackagingMembersrt:AsiaMember2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMembersrt:AsiaMember2019-01-012019-03-310000091767son:ProtectiveSolutionsMembersrt:AsiaMember2019-01-012019-03-310000091767son:ConsumerPackagingMemberson:OtherGeographicalAreasMember2019-01-012019-03-310000091767son:DisplayandPackagingMemberson:OtherGeographicalAreasMember2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberson:OtherGeographicalAreasMember2019-01-012019-03-310000091767son:ProtectiveSolutionsMemberson:OtherGeographicalAreasMember2019-01-012019-03-310000091767son:ConsumerPackagingMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-03-310000091767son:DisplayandPackagingMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-03-310000091767son:ProtectiveSolutionsMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-03-310000091767son:ConsumerPackagingMemberus-gaap:TransferredOverTimeMember2019-01-012019-03-310000091767son:DisplayandPackagingMemberus-gaap:TransferredOverTimeMember2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberus-gaap:TransferredOverTimeMember2019-01-012019-03-310000091767son:ProtectiveSolutionsMemberus-gaap:TransferredOverTimeMember2019-01-012019-03-310000091767son:ConsumerPackagingMembercountry:US2018-01-012018-04-010000091767son:DisplayandPackagingMembercountry:US2018-01-012018-04-010000091767son:PaperAndIndustrialConvertedProductsMembercountry:US2018-01-012018-04-010000091767son:ProtectiveSolutionsMembercountry:US2018-01-012018-04-010000091767srt:EuropeMemberson:ConsumerPackagingMember2018-01-012018-04-010000091767srt:EuropeMemberson:DisplayandPackagingMember2018-01-012018-04-010000091767srt:EuropeMemberson:PaperAndIndustrialConvertedProductsMember2018-01-012018-04-010000091767son:ProtectiveSolutionsMembersrt:EuropeMember2018-01-012018-04-010000091767son:ConsumerPackagingMembercountry:CA2018-01-012018-04-010000091767son:DisplayandPackagingMembercountry:CA2018-01-012018-04-010000091767son:PaperAndIndustrialConvertedProductsMembercountry:CA2018-01-012018-04-010000091767son:ProtectiveSolutionsMembercountry:CA2018-01-012018-04-010000091767son:ConsumerPackagingMembersrt:AsiaMember2018-01-012018-04-010000091767son:DisplayandPackagingMembersrt:AsiaMember2018-01-012018-04-010000091767son:PaperAndIndustrialConvertedProductsMembersrt:AsiaMember2018-01-012018-04-010000091767son:ProtectiveSolutionsMembersrt:AsiaMember2018-01-012018-04-010000091767son:ConsumerPackagingMemberson:OtherGeographicalAreasMember2018-01-012018-04-010000091767son:DisplayandPackagingMemberson:OtherGeographicalAreasMember2018-01-012018-04-010000091767son:PaperAndIndustrialConvertedProductsMemberson:OtherGeographicalAreasMember2018-01-012018-04-010000091767son:ProtectiveSolutionsMemberson:OtherGeographicalAreasMember2018-01-012018-04-010000091767son:ConsumerPackagingMember2018-01-012018-04-010000091767son:DisplayandPackagingMember2018-01-012018-04-010000091767son:PaperAndIndustrialConvertedProductsMember2018-01-012018-04-010000091767son:ProtectiveSolutionsMember2018-01-012018-04-010000091767son:ConsumerPackagingMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-04-010000091767son:DisplayandPackagingMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-04-010000091767son:PaperAndIndustrialConvertedProductsMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-04-010000091767son:ProtectiveSolutionsMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-04-010000091767son:ConsumerPackagingMemberus-gaap:TransferredOverTimeMember2018-01-012018-04-010000091767son:DisplayandPackagingMemberus-gaap:TransferredOverTimeMember2018-01-012018-04-010000091767son:PaperAndIndustrialConvertedProductsMemberus-gaap:TransferredOverTimeMember2018-01-012018-04-010000091767son:ProtectiveSolutionsMemberus-gaap:TransferredOverTimeMember2018-01-012018-04-01son:segment0000091767son:ConsumerPackagingMemberus-gaap:OperatingSegmentsMember2019-01-012019-03-310000091767son:ConsumerPackagingMemberus-gaap:OperatingSegmentsMember2018-01-012018-04-010000091767son:DisplayandPackagingMemberus-gaap:OperatingSegmentsMember2019-01-012019-03-310000091767son:DisplayandPackagingMemberus-gaap:OperatingSegmentsMember2018-01-012018-04-010000091767son:PaperAndIndustrialConvertedProductsMemberus-gaap:OperatingSegmentsMember2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberus-gaap:OperatingSegmentsMember2018-01-012018-04-010000091767son:ProtectiveSolutionsMemberus-gaap:OperatingSegmentsMember2019-01-012019-03-310000091767son:ProtectiveSolutionsMemberus-gaap:OperatingSegmentsMember2018-01-012018-04-010000091767son:ConsumerPackagingMemberus-gaap:IntersegmentEliminationMember2019-01-012019-03-310000091767son:ConsumerPackagingMemberus-gaap:IntersegmentEliminationMember2018-01-012018-04-010000091767son:DisplayandPackagingMemberus-gaap:IntersegmentEliminationMember2019-01-012019-03-310000091767son:DisplayandPackagingMemberus-gaap:IntersegmentEliminationMember2018-01-012018-04-010000091767son:PaperAndIndustrialConvertedProductsMemberus-gaap:IntersegmentEliminationMember2019-01-012019-03-310000091767son:PaperAndIndustrialConvertedProductsMemberus-gaap:IntersegmentEliminationMember2018-01-012018-04-010000091767son:ProtectiveSolutionsMemberus-gaap:IntersegmentEliminationMember2019-01-012019-03-310000091767son:ProtectiveSolutionsMemberus-gaap:IntersegmentEliminationMember2018-01-012018-04-010000091767us-gaap:IntersegmentEliminationMember2019-01-012019-03-310000091767us-gaap:IntersegmentEliminationMember2018-01-012018-04-010000091767us-gaap:MaterialReconcilingItemsMember2019-01-012019-03-310000091767us-gaap:MaterialReconcilingItemsMember2018-01-012018-04-010000091767son:TegrantHoldingCorporationMemberson:SpartanburgSouthCarolinaSiteMember2011-11-300000091767son:TegrantHoldingCorporationMemberson:SpartanburgSouthCarolinaSiteMember2011-11-012019-03-310000091767son:TegrantHoldingCorporationMemberson:SpartanburgSouthCarolinaSiteMember2012-01-012018-12-310000091767son:TegrantHoldingCorporationMemberson:SpartanburgSouthCarolinaSiteMember2019-03-310000091767son:TegrantHoldingCorporationMemberson:SpartanburgSouthCarolinaSiteMember2018-12-310000091767son:MultipleSitesMember2019-03-310000091767son:MultipleSitesMember2018-12-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2019
or
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File No. 001-11261
SONOCO PRODUCTS COMPANY
Incorporated under the laws
of South Carolina
I.R.S. Employer Identification
No. 57-0248420
1 N. Second St.
Hartsville, South Carolina 29550
Telephone: 843/383-7000
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files). Yes ý No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
ý
Accelerated filer
¨
Non-accelerated filer
¨
Smaller reporting company
¨
Emerging growth company
¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No ý
Indicate the number of shares outstanding of each of the issuer’s classes of common stock at April 19, 2019:
Notes payable and current portion of long-term debt
221,199
195,445
Accrued taxes
20,060
8,516
1,156,228
1,082,930
Long-term Debt, Net of Current Portion
1,189,415
1,189,717
Noncurrent Operating Lease Liabilities
262,663
—
Pension and Other Postretirement Benefits
369,910
374,419
Deferred Income Taxes
63,806
64,273
Other Liabilities
98,343
99,848
Sonoco Shareholders’ Equity
Common stock, no par value
Authorized 300,000 shares 100,036 and 99,829 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively
7,175
7,175
Capital in excess of stated value
302,273
304,709
Accumulated other comprehensive loss
(734,745)
(740,913)
Retained earnings
2,213,473
2,188,115
Total Sonoco Shareholders’ Equity
1,788,176
1,759,086
Noncontrolling Interests
12,963
13,192
Total Equity
1,801,139
1,772,278
Total Liabilities and Equity
$
4,941,504
$
4,583,465
*
The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.
See accompanying Notes to Condensed Consolidated Financial Statements
3
SONOCO PRODUCTS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(Dollars and shares in thousands except per share data)
Three Months Ended
March 31, 2019
April 1, 2018
Net sales
$
1,351,705
$
1,304,187
Cost of sales
1,081,584
1,053,585
Gross profit
270,121
250,602
Selling, general and administrative expenses
142,561
137,441
Restructuring/Asset impairment charges
10,672
3,063
Operating profit
116,888
110,098
Non-operating pension costs/(income)
6,041
(291)
Interest expense
16,032
14,795
Interest income
647
1,440
Income before income taxes
95,462
97,034
Provision for income taxes
22,624
23,356
Income before equity in earnings of affiliates
72,838
73,678
Equity in earnings of affiliates, net of tax
930
1,247
Net income
73,768
74,925
Net income attributable to noncontrolling interests
(105)
(870)
Net income attributable to Sonoco
$
73,663
$
74,055
Weighted average common shares outstanding:
Basic
100,640
100,396
Diluted
101,072
100,896
Per common share:
Net income attributable to Sonoco:
Basic
$
0.73
$
0.74
Diluted
$
0.73
$
0.73
See accompanying Notes to Condensed Consolidated Financial Statements
4
SONOCO PRODUCTS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (unaudited)
(Dollars in thousands)
Three Months Ended
March 31, 2019
April 1, 2018
Net income
$
73,768
$
74,925
Other comprehensive income/(loss):
Foreign currency translation adjustments
(2,972)
22,982
Changes in defined benefit plans, net of tax
7,156
5,817
Changes in derivative financial instruments, net of tax
1,864
1,047
Other comprehensive income
$
6,048
$
29,846
Comprehensive income
$
79,816
$
104,771
Net income attributable to noncontrolling interests
(105)
(870)
Other comprehensive income attributable to noncontrolling interests
(120)
(429)
Comprehensive income attributable to Sonoco
$
79,591
$
103,472
See accompanying Notes to Condensed Consolidated Financial Statements
5
SONOCO PRODUCTS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF
CHANGES IN TOTAL EQUITY (unaudited)
(Dollars in thousands)
Total Equity
Common Shares
Capital in Excess of Stated Value
Accumulated Other Comprehensive Loss
Retained Earnings
Noncontrolling Interests
Outstanding
Amount
December 31, 2017
$
1,730,060
99,414
$
7,175
$
330,157
$
(666,272)
$
2,036,006
$
22,994
Net income
74,925
74,055
870
Other comprehensive income:
Translation gain
22,982
22,553
429
Defined benefit plan adjustment, net of tax
5,817
5,817
Derivative financial instruments, net of tax
1,047
1,047
Other comprehensive income
$
29,846
$
29,417
$
429
Dividends
(39,535)
(39,535)
Issuance of stock awards
479
227
479
Shares repurchased
(4,088)
(78)
(4,088)
Stock-based compensation
3,048
3,048
Impact of new accounting pronouncements
1,721
(176)
1,897
April 1, 2018
$
1,796,456
99,563
$
7,175
$
329,596
$
(637,031)
$
2,072,423
$
24,293
Total Equity
Common Shares
Capital in Excess of Stated Value
Accumulated Other Comprehensive Loss
Retained Earnings
Noncontrolling Interests
Outstanding
Amount
December 31, 2018
$
1,772,278
99,829
$
7,175
$
304,709
$
(740,913)
$
2,188,115
$
13,192
Net income
73,768
73,663
105
Other comprehensive income/(loss):
Translation loss
(2,972)
(2,852)
(120)
Defined benefit plan adjustment, net of tax
7,156
7,156
Derivative financial instruments, net of tax
1,864
1,864
Other comprehensive income/(loss)
$
6,048
$
6,168
$
(120)
Dividends
(41,534)
(41,534)
Dividends paid to noncontrolling interests
(214)
(214)
Issuance of stock awards
399
340
399
Shares repurchased
(7,395)
(133)
(7,395)
Stock-based compensation
4,560
4,560
Impact of new accounting pronouncements
(6,771)
(6,771)
March 31, 2019
$
1,801,139
100,036
$
7,175
$
302,273
$
(734,745)
$
2,213,473
$
12,963
See accompanying Notes to Condensed Consolidated Financial Statements
6
SONOCO PRODUCTS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(Dollars in thousands)
Three Months Ended
March 31, 2019
April 1, 2018
Cash Flows from Operating Activities:
Net income
$
73,768
$
74,925
Adjustments to reconcile net income to net cash provided by operating activities:
Asset impairment
1,400
162
Depreciation, depletion and amortization
58,614
58,068
Share-based compensation expense
4,560
3,048
Equity in earnings of affiliates
(930)
(1,247)
Cash dividends from affiliated companies
525
900
Net loss/(gain) on disposition of assets
2,160
(227)
Pension and postretirement plan expense
7,056
8,492
Pension and postretirement plan contributions
(17,353)
(18,724)
Net decrease in deferred taxes
(1,092)
(1,669)
Change in assets and liabilities, net of effects from acquisitions, dispositions, and foreign currency adjustments:
Trade accounts receivable
(40,036)
(19,346)
Inventories
(20,631)
(17,814)
Payable to suppliers
14,763
10,267
Prepaid expenses
(2,637)
(4,202)
Accrued expenses
(16,865)
(229)
Income taxes payable and other income tax items
11,400
17,183
Other assets and liabilities
17,617
10,178
Net cash provided by operating activities
92,319
119,765
Cash Flows from Investing Activities:
Purchase of property, plant and equipment
(42,157)
(41,360)
Cost of acquisitions, net of cash acquired
(455)
—
Proceeds from the sale of assets
493
5,352
Investment in affiliates and other, net
1,150
148
Net cash used in investing activities
(40,969)
(35,860)
Cash Flows from Financing Activities:
Proceeds from issuance of debt
15,566
21,488
Principal repayment of debt
(34,651)
(19,662)
Net change in commercial paper
31,000
10,000
Net decrease in outstanding checks
(10,993)
(5,506)
Cash dividends
(41,136)
(38,829)
Dividends paid to noncontrolling interests
(214)
—
Shares acquired
(7,395)
(4,088)
Net cash used in financing activities
(47,823)
(36,597)
Effects of Exchange Rate Changes on Cash
412
3,030
Net Increase in Cash and Cash Equivalents
3,939
50,338
Cash and cash equivalents at beginning of period
120,389
254,912
Cash and cash equivalents at end of period
$
124,328
$
305,250
See accompanying Notes to Condensed Consolidated Financial Statements
7
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)
Note 1: Basis of Interim Presentation
In the opinion of the management of Sonoco Products Company (the “Company” or “Sonoco”), the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments, unless otherwise stated) necessary to state fairly the consolidated financial position, results of operations and cash flows for the interim periods reported herein. Operating results for the three months ended March 31, 2019, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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, 2018.
With respect to the unaudited condensed consolidated financial information of the Company for the three-month periods ended March 31, 2019 and April 1, 2018 included in this Form 10-Q, PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report dated May 1, 2019 appearing herein, states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP is not subject to the liability provisions of Section 11 of the Securities Act of 1933 for their report on the unaudited financial information because that report is not a “report” or a “part” of a registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the Act.
Note 2: New Accounting Pronouncements
In December 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-16 “Derivatives and Hedging: Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes,” which allows the use of the SOFR and OIS rate as benchmark rates after the Federal Reserve started publishing such daily rate on April 3, 2018. The Company adopted the standard effective January 1, 2019 using the prospective basis. The adoption did not have a material effect on the consolidated financial statements.
In January 2016, the FASB issued ASU 2016-02, "Leases" (“ASU 2016-02”) requiring lessees to recognize on the balance sheet a right-of-use asset and lease liability for all long-term leases and requiring disclosure of key information about leasing arrangements in order to increase transparency and comparability among organizations. The accounting for lessors does not fundamentally change except for changes to conform and align guidance to the lessee guidance and the revenue recognition standard adopted in 2018. The Company established a cross-functional team to implement certain software solutions as part of its newly integrated enterprise-wide lease management system. The implementation plan included developing business processes, accounting systems, and internal controls to ensure the Company's compliance with reporting and disclosure requirements of the new standard. The Company elected the package of practical expedients permitted under the transition guidance within the new standard upon adoption and has made an accounting policy election to keep leases with a term of 12 months or less off of the balance sheet in accordance with ASU 2016-02’s short-term lease exemption provision. The Company is also electing the hindsight practical expedient to determine the reasonably certain lease term for existing leases and has elected to combine lease and non-lease components as a single lease component for all classes of assets.
The Company adopted ASU 2016-02 as of January 1, 2019, using a modified retrospective transition method and elected to apply the optional transition approach prescribed by ASU 2018-11 which allows entities to initially apply the new leases standard at the adoption date, without adjusting comparative periods. The adoption of the ASU 2016-02 resulted in the Company recording a right of use asset impact of $336,083 and a lease liability impact of $344,362 to its consolidated balance sheet, partially offset by a cumulative effect adjustment to retained earnings of $6,771 and a $1,508 reduction to deferred tax liabilities.
During the three-month period ended March 31, 2019, there have been no other newly issued nor newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at March 31, 2019, there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements.
8
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)
Note 3: Acquisitions
The Company completed the acquisition of the remaining 70 percent interest in Conitex Sonoco (BVI), Ltd. ("Conitex Sonoco") from Texpack Investments, Inc. ("Texpack") on October 1, 2018. Concurrent with this acquisition, the Company also acquired a rigid paper facility in Spain ("Compositub") from Texpack Group Holdings B.V. Final consideration for both acquisitions was subject to a post-closing adjustment for the change in working capital to the date of closing. These adjustments were settled in February 2019 for additional cash payments to the sellers totaling $455.
On April 12, 2018, the Company completed the acquisition of Highland Packaging Solutions ("Highland"). Highland manufactures thermoformed plastic packaging for fresh produce and dairy products from a single production facility in Plant City, Florida. The acquisition of Highland included a contingent purchase liability of $7,500 payable in two installments and based upon a sales metric which the Company expects to meet. The first installment of $5,000 is expected to be paid by the end of the second quarter of 2019 and the second installment of $2,500 is to be paid two years after the closing date. The liability for these two payments has been recognized in full on the Company's Condensed Consolidated Balance Sheets at March 31, 2019 and December 31,2018, with the first installment included in "Accrued expenses and other" and the second in "Other Liabilities."
During the three months ended March 31, 2019, the Company continued to finalize its valuations of the assets acquired and liabilities assumed in acquisitions completed in the previous year based on new information obtained about facts and circumstances that existed as of their respective acquisition dates. As a result, the following measurement period adjustments were made to the previously disclosed provisional fair values:
Conitex Sonoco
Compositub
Highland
Trade accounts receivable
$
(77)
$
203
$
—
Inventories
—
50
—
Property, plant and equipment
(199)
(1,026)
1,895
Goodwill
1,971
(566)
(1,895)
Other intangible assets
300
1,888
—
Accrued expenses and other
(1,782)
(138)
—
Other net tangible assets /(liabilities)
(129)
(40)
—
Net assets
$
84
$
371
$
—
Management is continuing to finalize its valuations of certain assets and liabilities associated with its 2018 acquisitions, including, but not limited to: inventory; property, plant and equipment; other intangible assets; and trade accounts receivable, and expects to complete its valuations within one year of the respective dates of acquisition.
The Company has accounted for its acquisitions as business combinations under the acquisition method of accounting, in accordance with the business combinations subtopic of the Accounting Standards Codification and has included their results of operations in the Company's Condensed Consolidated Statements of Income from their respective dates of acquisition.
Acquisition-related costs of $400 and $545 were incurred during the three months ended March 31, 2019 and April 1, 2018, respectively. Acquisition-related costs consist primarily of legal and professional fees and are included in "Selling, general and administrative expenses" in the Company's Condensed Consolidated Statements of Income.
9
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)
Note 4: Shareholders' Equity
Earnings per Share
The following table sets forth the computation of basic and diluted earnings per share:
Three Months Ended
March 31, 2019
April 1, 2018
Numerator:
Net income attributable to Sonoco
$
73,663
$
74,055
Denominator:
Weighted average common shares outstanding:
Basic
100,640
100,396
Dilutive effect of stock-based compensation
432
500
Diluted
101,072
100,896
Net income attributable to Sonoco per common share:
Basic
$
0.73
$
0.74
Diluted
$
0.73
$
0.73
Cash dividends
$
0.41
$
0.39
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 antidilutive. 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 not dilutive and, therefore, not included in the computation of diluted earnings per share during the three month periods ended March 31, 2019 and April 1, 2018 were as follows:
Three Months Ended
March 31, 2019
April 1, 2018
Anti-dilutive stock appreciation rights
305
738
No adjustments were made to net income attributable to Sonoco in the computations of earnings per share.
Stock Repurchases
On February 10, 2016, the Company’s Board of Directors authorized the repurchase of up to 5,000 shares of the Company's common stock. A total of 2,030 were purchased in 2016. No shares were repurchased under this authorization during 2017, 2018, or during the three months ended March 31, 2019. Accordingly, a total of 2,970 shares remain available for repurchase at March 31, 2019.
The Company frequently 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 133 shares in the three months ended March 31, 2019 at a cost of $7,395, and 78 shares in the three months ended April 1, 2018 at a cost of $4,088.
Dividend Declarations
On February 13, 2019, the Board of Directors declared a regular quarterly dividend of $0.41 per share. This dividend was paid on March 8, 2019 to all shareholders of record as of February 27, 2019.
On April 17, 2019, the Board of Directors declared a regular quarterly dividend of $0.43 per share. This dividend is payable on June 10, 2019 to all shareholders of record as of May 10, 2019.
10
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)
Note 5: Restructuring and Asset Impairment
The Company has engaged in a number of restructuring actions over the past several years. Actions initiated in 2019 and 2018 are reported as “2019 Actions” and “2018 Actions,” respectively. Actions initiated prior to 2018, all of which were substantially complete at March 31, 2019, are reported as “2017 and Earlier Actions.”
Following are the total restructuring and asset impairment charges, net of adjustments, recognized by the Company during the periods presented:
Three Months Ended
March 31, 2019
April 1, 2018
Restructuring/Asset impairment:
2019 Actions
$
6,389
$
—
2018 Actions
4,046
2,207
2017 and Earlier Actions
237
856
Restructuring/Asset impairment charges
10,672
3,063
Income tax benefit
(2,638)
(685)
Less: Costs attributable to noncontrolling interests, net of tax
(69)
(5)
Restructuring/asset impairment charges attributable to Sonoco, net of tax
$
7,965
$
2,373
Pre-tax restructuring and asset impairment charges are included in “Restructuring/Asset impairment charges” in the Condensed Consolidated Statements of Income.
When recognizable in accordance with GAAP, the Company expects to recognize future additional charges totaling approximately $5,100 in connection with previously announced restructuring actions. The Company believes that the majority of these charges will be incurred and paid by the end of 2019. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken.
2019 Actions
During 2019, the Company announced the elimination of a forming film production line at a flexible packaging facility in the United States, and initiated the closure of a composite can and injection molding facility in Germany (both part of the Consumer Packaging segment). In addition, approximately 90 positions were eliminated in the first three months of 2019 in conjunction with the Company's ongoing organizational effectiveness efforts.
Below is a summary of 2019 Actions and related expenses by segment and by type incurred and estimated to be incurred through completion.
2019 Actions
First Quarter 2019
Estimated Total Cost
Severance and Termination Benefits
Consumer Packaging
$
2,989
$
6,639
Paper and Industrial Converted Products
422
422
Protective Solutions
341
341
Corporate
1,726
1,876
Asset Impairment / Disposal of Assets
Consumer Packaging
312
312
Other Costs
Consumer Packaging
442
442
Display and Packaging
155
255
Paper and Industrial Converted Products
2
2
Total Charges and Adjustments
$
6,389
$
10,289
11
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)
The following table sets forth the activity in the 2019 Actions restructuring accrual included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets: