10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 FORM 10-Q

 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 2, 2022

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

(Exact name of registrant as specified in its charter)

South Carolina	57-0248420
(State or other jurisdiction of incorporation of organization)	(I.R.S. Employer Identification No.)
1 N. Second St., Hartsville, South Carolina	29550
(address of principal executive offices)	(Zip Code)

(843) 383-7000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
No par value common stock	SON	New York Stock Exchange LLC

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 ☒   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 (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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	☒	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  ☒

The number of shares outstanding of the registrant's no par value common stock as of October 21, 2022 was 97,512,226.

SONOCO PRODUCTS COMPANY

INDEX

 

PART I. FINANCIAL INFORMATION		3
Item 1.	Financial Statements:	3
	Condensed Consolidated Balance Sheets – October 2, 2022 (unaudited) and December 31, 2021 (unaudited)	3
	Condensed Consolidated Statements of Income – Three and Nine Months Ended October 2, 2022 (unaudited) and October 3, 2021 (unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income – Three and Nine Months Ended October 2, 2022 (unaudited) and October 3, 2021 (unaudited)	5
	Condensed Consolidated Statements of Changes in Total Equity – Three and Nine Months Ended October 2, 2022 (unaudited) and October 3, 2021 (unaudited)	6
	Condensed Consolidated Statements of Cash Flows – Nine Months Ended October 2, 2022 (unaudited) and October 3, 2021 (unaudited)	8
	Notes to Condensed Consolidated Financial Statements (unaudited)	9
	Report of Independent Registered Public Accounting Firm	38
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	39
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	56
Item 4.	Controls and Procedures.	57
PART II. OTHER INFORMATION		57
Item 1.	Legal Proceedings.	57
Item 6.	Exhibits.	58

2

Part I. FINANCIAL INFORMATION 

Item 1. Financial Statements.

SONOCO PRODUCTS COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(Dollars and shares in thousands)

	October 2, 2022		December 31, 2021
Assets
Current Assets
Cash and cash equivalents	$	182,238	$	170,978
Trade accounts receivable, net of allowances	972,874		755,609
Other receivables	113,206		95,943
Inventories, net:
Finished and in process	460,872		199,823
Materials and supplies	555,266		362,290
Prepaid expenses	126,864		74,034
	2,411,320		1,658,677
Property, Plant and Equipment, Net	1,627,283		1,297,500
Goodwill	1,641,948		1,324,501
Other Intangible Assets, Net	709,723		278,143
Deferred Income Taxes	22,260		25,818
Right of Use Asset-Operating Leases	296,838		268,390
Other Assets	266,274		220,206
Total Assets	$	6,975,646	$	5,073,235
Liabilities and Equity
Current Liabilities
Payable to suppliers	$	888,394	$	721,312
Accrued expenses and other	413,547		381,350
Notes payable and current portion of long-term debt	416,929		411,557
Accrued taxes	36,602		11,544
	1,755,472		1,525,763
Long-term Debt, Net of Current Portion	2,723,101		1,199,106
Noncurrent Operating Lease Liabilities	253,466		234,167
Pension and Other Postretirement Benefits	152,118		158,265
Deferred Income Taxes	115,221		70,482
Other Liabilities	41,187		35,911
Sonoco Shareholders’ Equity
Common stock, no par value
Authorized 300,000 shares 97,512 and 97,370 shares issued and outstanding at October 2, 2022 and December 31, 2021, respectively	7,175		7,175
Capital in excess of stated value	134,917		119,690
Accumulated other comprehensive loss	(512,525)		(359,425)
Retained earnings	2,299,040		2,070,005
Total Sonoco Shareholders’ Equity	1,928,607		1,837,445
Noncontrolling Interests	6,474		12,096
Total Equity	1,935,081		1,849,541
Total Liabilities and Equity	$	6,975,646	$	5,073,235

* 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 (the “United States” or “U.S.”).

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				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Net sales	$	1,890,216	$	1,415,193	$	5,574,530	$	4,151,251
Cost of sales	1,523,070		1,157,462		4,448,818		3,352,966
Gross profit	367,146		257,731		1,125,712		798,285
Selling, general and administrative expenses	164,552		130,580		533,875		404,617
Restructuring/Asset impairment charges	20,652		3,488		43,357		8,889
Gain/(loss) on divestiture of business	—		2,849		—		(2,667)
Operating profit	181,942		126,512		548,480		382,112
Non-operating pension costs	1,249		525		4,251		562,818
Interest expense	26,714		14,753		71,242		50,767
Interest income	1,148		534		3,450		4,023
Loss from the early extinguishment of debt	—		—		—		20,184
Income/(Loss) before income taxes	155,127		111,768		476,437		(247,634)
Provision for/(Benefit from) income taxes	36,824		2,564		116,712		(91,542)
Income/(Loss) before equity in earnings of affiliates	118,303		109,204		359,725		(156,092)
Equity in earnings of affiliates, net of tax	4,199		2,351		10,151		5,701
Net income/(loss)	122,502		111,555		369,876		(150,391)
Net (income)/loss attributable to noncontrolling interests	(273)		(415)		(642)		(243)
Net income/(loss) attributable to Sonoco	$	122,229	$	111,140	$	369,234	$	(150,634)
Weighted average common shares outstanding:
Basic	98,013		98,955		97,978		100,039
Diluted	98,762		99,425		98,669		100,039
Per common share:
Net income/(loss) attributable to Sonoco:
Basic	$	1.25	$	1.12	$	3.77	$	(1.51)
Diluted	$	1.24	$	1.12	$	3.74	$	(1.51)

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				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Net income/(loss)	$	122,502	$	111,555	$	369,876	$	(150,391)
Other comprehensive (loss)/income:
Foreign currency translation adjustments	(81,972)		(37,741)		(151,580)		(57,686)
Changes in defined benefit plans, net of tax	861		1,693		(876)		429,823
Changes in derivative financial instruments, net of tax	(1,252)		930		(792)		5,370
Other comprehensive (loss)/income	$	(82,363)	$	(35,118)	$	(153,248)	$	377,507
Comprehensive income:	40,139		76,437		216,628		227,116
Less: Net income attributable to noncontrolling interests	(273)		(415)		(642)		(243)
Less: Other comprehensive loss attributable to noncontrolling interests	515		664		148		425
Comprehensive income attributable to Sonoco	$	40,381	$	76,686	$	216,134	$	227,298

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, 2020	$	1,910,528	100,447	$	7,175	$	314,056	$	(756,842)	$	2,335,216	$	10,923
Net income/(loss)	72,293									72,297		(4)
Other comprehensive income/(loss):
Translation loss	(32,541)							(32,021)				(520)
Defined benefit plan adjustment, net of tax	5,385							5,385
Derivative financial instruments, net of tax	958							958
Other comprehensive loss	$	(26,198)						$	(25,678)			$	(520)
Dividends	(45,510)									(45,510)
Issuance of stock awards	364		245			364
Shares repurchased	(5,051)		(85)			(5,051)
Share-based compensation	6,372					6,372
April 4, 2021	$	1,912,798	100,607	$	7,175	$	315,741	$	(782,520)	$	2,362,003	$	10,399
Net loss	(334,239)									(334,070)		$	(169)
Other comprehensive income:
Translation gain	12,596							11,837				759
Defined benefit plan adjustment, net of tax	422,745							422,745
Derivative financial instruments, net of tax	3,482							3,482
Other comprehensive income	$	438,823						$	438,064			$	759
Dividends	(45,503)									(45,503)
Issuance of stock awards	246		41			246
Shares repurchased	(154,519)		(1,819)			(154,519)
Share-based compensation	4,827					4,827
July 4, 2021	$	1,822,433	98,829	$	7,175	$	166,295	$	(344,456)	$	1,982,430	$	10,989
Net income	111,555									111,140		415
Other comprehensive income/(loss):
Translation loss	(37,741)							(37,077)				(664)
Defined benefit plan adjustment, net of tax	1,693							1,693				—
Derivative financial instruments, net of tax	930							930				—
Other comprehensive loss	$	(35,118)						$	(34,454)			$	(664)
Dividends	(44,498)									(44,498)
Issuance of stock awards	251		3			251
Shares repurchased	(83)		(506)			(83)
Share-based compensation	6,192					6,192
October 3, 2021	$	1,860,732	98,326	$	7,175	$	172,655	$	(378,910)	$	2,049,072	$	10,740

6

	Total Equity		Common Shares			Capital in Excess of Stated Value		Accumulated Other Comprehensive Loss		Retained Earnings		Noncontrolling Interests
			Outstanding	Amount
December 31, 2021	$	1,849,541	97,370	$	7,175	$	119,690	$	(359,425)	$	2,070,005	$	12,096
Net income	115,607									115,333		274
Other comprehensive income/(loss):
Translation income/(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	$	3,447						$	2,556			$	891
Dividends	(44,124)									(44,124)
Purchase of noncontrolling interest	(13,196)					(7,080)						(6,116)
Issuance of stock awards	377		182			377
Shares repurchased	(3,410)		(60)			(3,410)
Share-based compensation	10,689					10,689
April 3, 2022	$	1,918,931	97,492	$	7,175	$	120,266	$	(356,869)	$	2,141,214	$	7,145
Net income	131,767									131,672		95
Other comprehensive loss
Translation loss	(70,314)							(69,790)				(524)
Defined benefit plan adjustment, net of tax	(1,928)							(1,928)
Derivative financial instruments, net of tax	(2,090)							(2,090)
Other comprehensive loss	$	(74,332)						$	(73,808)			$	(524)
Dividends	(48,041)									(48,041)
Issuance of stock awards	263		13			263
Shares repurchased	(574)		(10)			(574)
Share-based compensation	8,377					8,377
July 3, 2022	$	1,936,391	97,495	$	7,175	$	128,332	$	(430,677)	$	2,224,845	$	6,716
Net income	122,502									122,229		273
Other comprehensive income/(loss):
Translation loss	(81,972)							(81,457)				(515)
Defined benefit plan adjustment, net of tax	861							861				—
Derivative financial instruments, net of tax	(1,252)							(1,252)				—
Other comprehensive loss	(82,363)							(81,848)				(515)
Dividends	(48,034)									(48,034)
Issuance of stock awards	270		18			270
Shares repurchased	(72)		(1)			(72)
Share-based compensation	6,387					6,387
October 2, 2022	$	1,935,081	97,512	$	7,175	$	134,917	$	(512,525)	$	2,299,040	$	6,474

See accompanying Notes to Condensed Consolidated Financial Statements

7

SONOCO PRODUCTS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(Dollars in thousands)

	Nine Months Ended
	October 2, 2022		October 3, 2021
Cash Flows from Operating Activities:
Net income	$	369,876	$	(150,391)
Adjustments to reconcile net income to net cash provided by operating activities:
Asset impairments	13,857		3,490
Depreciation, depletion and amortization	231,095		185,541
Loss on early extinguishment of debt	—		20,184
Share-based compensation expense	25,453		17,392
Equity in earnings of affiliates	(10,151)		(5,701)
Cash dividends from affiliated companies	6,076		5,182
Net gain on disposition of assets	(178)		(2,376)
Net loss on divestiture of businesses	—		2,667
Pension and postretirement plan expense	6,951		583,340
Pension and postretirement plan contributions	(33,548)		(165,280)
Decrease in net deferred tax liabilities	(1,745)		(164,581)
Change in assets and liabilities, net of effects from acquisitions and foreign currency adjustments:
Trade accounts receivable	(143,221)		(142,699)
Inventories	(287,609)		(95,066)
Payable to suppliers	113,820		163,193
Prepaid expenses	(28,854)		(17,756)
Income taxes payable and other income tax items	44,493		(8,531)
Accrued expenses and other assets and liabilities	15,740		(8,530)
Net cash provided by operating activities	322,055		220,078
Cash Flows from Investing Activities:
Purchases of property, plant and equipment	(236,772)		(156,592)
Cost of acquisitions, net of cash acquired	(1,337,704)		(3,155)
Proceeds from the sale of businesses, net	—		91,569
Proceeds from the sale of assets	6,040		10,536
Other net investing activity	(1,976)		6,776
Net cash used in investing activities	(1,570,412)		(50,866)
Cash Flows from Financing Activities:
Proceeds from issuance of debt	1,579,750		138,382
Principal repayment of debt	(70,556)		(582,838)
Net change in commercial paper	(64,000)		202,000
Net decrease in outstanding checks	(16,509)		(10,736)
Proceeds from foreign exchange forward contracts and interest rate swaps	—		4,387
Cash dividends	(139,289)		(134,648)
Purchase of noncontrolling interest	(14,474)		—
Excess cash costs of early extinguishment of debt	—		(20,111)
Payments for share repurchases	(4,056)		(159,654)
Net cash provided/(used) by financing activities	1,270,866		(563,218)
Effects of Exchange Rate Changes on Cash	(11,249)		(10,830)
Net Increase/(Decrease) in Cash and Cash Equivalents	11,260		(404,836)
Cash and cash equivalents at beginning of period	170,978		564,848
Cash and cash equivalents at end of period	$	182,238	$	160,012

See accompanying Notes to Condensed Consolidated Financial Statements

8

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. Certain amounts within “Cash Flows from Operating Activities” in the Condensed Consolidated Statements of Cash Flows for the nine months ended October 3, 2021, have been reclassified to conform to the current year presentation. Operating results for the three- and nine-month periods ended October 2, 2022, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

With respect to the unaudited condensed consolidated financial information of the Company for the three- and nine-month periods ended October 2, 2022 and October 3, 2021 included in this Form 10-Q, PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report dated November 2, 2022 appearing herein, states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP is not subject to the liability provisions of Section 11 of the Securities Act of 1933 for their report on the unaudited financial information because that report is not a “report” or a “part” of a registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the Act.

Note 2: New Accounting Pronouncements

In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04 “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” The amendments in this update require that a buyer in a supplier finance program disclose qualitative and quantitative information about its supplier finance programs in each annual reporting period, including a description of key payment terms, and a rollforward of the outstanding obligation as of the end of the annual period. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company does not plan to elect early adoption of this update and does not expect this pronouncement to materially affect its consolidated financial statements.

In March 2022, the FASB issued ASU 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The amendments in this update eliminate the accounting guidance for troubled debt restructurings while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendments in this update also require that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases. The Company does not expect this pronouncement to materially affect its consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” Under current accounting standards, contract assets and contract liabilities acquired in a business combination are to be recorded at fair value using the ASC 805 measurement principle. ASU 2021-08 requires the acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606: Revenue from Contracts with Customers as if the acquirer had originated the contracts rather than at fair value. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company elected to early adopt ASU 2021-08 on a prospective basis as of January 1, 2022. The election to use practical expedients allowed under ASU 2021-08 will be applied on an acquisition-by-acquisition basis. There was no impact to the Company’s consolidated financial statements as of the adoption date.

During the nine-month period ended October 2, 2022, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at October 2, 2022, there are no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements.

9

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

Note 3: Acquisitions and Divestitures

Acquisitions

On September 23, 2022, the Company entered into a definitive agreement to acquire S.P. Holding, Skjern A/S (“Skjern”), a privately owned manufacturer of paper based in Skjern, Denmark. The estimated $88,000 (purchase price subject to foreign currency fluctuations) all-cash transaction is expected to be completed in the fourth quarter of 2022, subject to customary closing conditions. Skjern produces high-grade paperboard from 100% recycled paper for rigid paper containers, tubes and cores, and other applications. The acquisition is expected to expand production capacity for the Company’s converting operations and customers throughout Europe.

On August 31, 2022, the Company completed the acquisition of Nordeste Tubetes and NE Tubetes (collectively “Nordeste”), two small tube and core operations in Brazil. Total consideration for the two businesses was $6,518, including cash paid at closing of $3,933, and deferred payments totaling $2,585 expected to be paid over the next six years. Goodwill for Nordeste, all of which is expected to be deductible for income tax purposes, consists of increased access to certain markets and existing customer relationships. Nordeste's financial results from the date acquired are included in the Company's Industrial Paper Packaging segment.

On January 26, 2022, the Company completed the acquisition of Ball Metalpack Holding, LLC, renamed Sonoco Metal Packaging (“Metal Packaging”), a leading supplier of sustainable metal packaging for food and household products and the largest aerosol can producer in North America, for $1,348,589, net of cash acquired. As previously disclosed, final consideration was subject to customary post-closing adjustments for working capital, cash and indebtedness and was finalized in the second quarter of 2022. The Company received cash from the sellers totaling $14,820, of which $6,924 was included in “Other receivables” in the Company's Condensed Consolidated Balance Sheet at April 3, 2022. Prior to the Company's acquisition of Metal Packaging, Ball Metalpack Holding, LLC was a joint venture formed in 2018 and owned by Platinum Equity (51%) and Ball Corporation (49%). Metal Packaging consists of eight manufacturing plants in the United States and a headquarters facility in Broomfield, Colorado. This acquisition fits the Company's strategy of investing in its core businesses as it complements the Company's largest Consumer Packaging franchise, global rigid paper containers, and further expands the Company's sustainable packaging portfolio to include metal packaging.

The Company's initial preliminary fair values of the assets acquired and the liabilities assumed in the Metal Packaging acquisition, as well as revised preliminary fair values reflecting adjustments made during the measurement period, are as follows:

	Initial Allocation		Measurement Period Adjustments		Revised Allocation
Trade accounts receivable	$	113,850	$	—	$	113,850
Other receivables	14,569		—		14,569
Inventories	190,070		556		190,626
Prepaid expenses	44,530		—		44,530
Property, plant and equipment	333,496		(1,363)		332,133
Right of use asset - operating leases	38,000		—		38,000
Other intangible assets	498,000		—		498,000
Goodwill	366,098		(9,187)		356,911
Other net tangible assets	48,069		(196)		47,873
Payable to suppliers	(105,580)		—		(105,580)
Accrued expenses and other	(30,671)		489		(30,182)
Notes payable and current portion of long-term debt	(46,463)		—		(46,463)
Noncurrent operating lease liabilities	(30,448)		—		(30,448)
Long-term debt	(39,543)		—		(39,543)
Deferred income taxes	(52,312)		1,805		(50,507)
Total purchase price, net of cash acquired	$	1,341,665	$	(7,896)	$	1,333,769

10

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

The allocation of the purchase price of Metal Packaging to the tangible and intangible assets acquired and liabilities assumed, as reflected under the heading “Revised Allocation” in the table above, is based on the Company's preliminary estimates of their fair value, based on information currently available. Management is continuing to finalize its valuation of certain assets and liabilities including, but not limited to: inventory; property, plant and equipment; goodwill; other intangible assets; deferred income taxes; trade accounts receivable; and accrued expenses and other, and expects to complete its valuations within one year of the date of acquisition.

Factors comprising goodwill include increased access to certain markets as well as the value of the assembled workforce. Approximately 67% of goodwill is expected to be deductible for income tax purposes. Metal Packaging's financial results are included in the Company's Consumer Packaging segment.

The Company has accounted for this acquisition as a business combination under the acquisition method and has included the results of operations of the acquired business in the Company's Condensed Consolidated Statements of Income from the date of acquisition.

The following table presents the unaudited financial results for Metal Packaging for the three-month period ended October 2, 2022 and from the date of acquisition through October 2, 2022:

Supplemental Information (unaudited)	Three Months Ended		January 26 to
Metal Packaging	October 2, 2022		October 2, 2022
Net sales	$	335,468	$	798,018
Net income	$	16,769	$	61,216

The following table presents the Company’s estimated unaudited pro forma consolidated results for the three- and nine-month periods ended October 2, 2022 and October 3, 2021, assuming the acquisition of Metal Packaging had occurred on January 1, 2021. This unaudited pro forma information is presented for informational purposes only and does not purport to represent the results of operations that would have been achieved if the acquisition had been completed at the beginning of 2021, nor is it necessarily indicative of future consolidated results.

Pro Forma Supplemental Information (unaudited)	Three Months Ended				Nine Months Ended
Consolidated	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Net sales	$	1,890,216	$	1,643,726	$	5,624,118	$	4,767,306
Net income/(loss) attributable to Sonoco	$	123,047	$	105,578	$	428,287	$	(215,045)

The unaudited pro forma information above does not project the Company’s expected results for any future period and gives no effect to any future synergistic benefits that may result from the combination or the costs of integrating the acquired operations with those of the Company. Unaudited pro forma information for the three- and nine-month periods ended October 2, 2022 and October 3, 2021 includes adjustments to depreciation, amortization, and income taxes based upon the preliminary fair value allocation of the purchase price to Metal Packaging's tangible and intangible assets acquired and liabilities assumed as though the acquisition had occurred on January 1, 2021. Interest expense on the additional debt issued by the Company to fund the acquisition and retention bonuses incurred related to the acquisition are also included in the unaudited pro forma information as if the acquisition had occurred on January 1, 2021. Acquisition-related costs of $793 and $27,195 were recognized during the three- and nine-month periods ended October 2, 2022, respectively, and charges related to fair value adjustments to acquisition-date inventory of $33,155 were recognized during the nine-month period ended October 2, 2022. These costs are excluded from 2022 unaudited pro forma net income and are instead reflected in 2021 pro forma net income as though the acquisition had occurred on January 1, 2021.

11

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

Divestitures

As previously disclosed, the Company completed the sale of its U.S. display and packaging business, part of the All Other group of businesses, to Hood Container Corporation on April 4, 2021 for $80,000 in cash. This business provided design, manufacturing and fulfillment of point-of-purchase displays, as well as contract packaging services, for consumer product customers and had approximately 450 employees. Its operations included eight manufacturing and fulfillment facilities and four sales and design centers.

The selling price was adjusted at closing for certain transaction expenses and for anticipated differences between targeted levels of working capital and the projected levels at the time of closing. Net cash proceeds of $79,704 were received on April 5, 2021 and the Company recognized a loss on the divestiture of this business of $5,516, before tax, in the first quarter of 2021. During the quarter ended October 3, 2021, the Company finalized the working capital settlement related to this sale. The settlement resulted in additional cash proceeds of $1,971 and the buyer's assumption of certain liabilities totaling $786. As a result, the Company recognized a reduction in the previously reported loss on the sale of this business of $2,757, before tax, in the third quarter of 2021, bringing the total loss on the sale of business to $2,759, before tax.

On September 30, 2021, the Company completed the sale of its plastics foods thermoforming business in Wilson, North Carolina (“Wilson Thermoforming”) to Placon for net cash proceeds of $3,528, resulting in the recognition of a pre-tax gain on the sale of $92.

The Company continually assesses its operational footprint as well as its overall portfolio of businesses and may consider the divestiture of plants and/or business units it considers to be suboptimal or nonstrategic.

Acquisition and Divestiture-Related Costs

Acquisition- and divestiture-related costs totaled $2,022 and $62,655 during the three- and nine-month periods ended October 2, 2022, respectively, primarily related to the Metal Packaging acquisition. These costs include legal and professional fees, investment banking fees, representation and warranty insurance premiums, and other transaction costs, totaling $2,022 and $29,500 during the three- and nine-month periods ended October 2, 2022, respectively, that are included in “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income. The costs for the nine-month period ended October 2, 2022 also include fair value adjustments to acquisition-date inventory totaling $33,155, that are included in “Cost of sales” in the Company's Condensed Consolidated Statements of Income.

Acquisition and divestiture-related costs totaled $1,015 and $12,503 during the three- and nine-month periods ended October 3, 2021, respectively. These costs, consisting primarily of legal and professional fees, are included in “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income.

12

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

Note 4: Shareholders' Equity

Earnings/(loss) per Share

The following table sets forth the computation of basic and diluted earnings/(loss) per share:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Numerator:
Net income/(loss) attributable to Sonoco	$	122,229	$	111,140	$	369,234	$	(150,634)
Denominator:
Weighted average common shares outstanding:
Basic	98,013		98,955		97,978		100,039
Dilutive effect of stock-based compensation	749		470		691		—
Diluted	98,762		99,425		98,669		100,039
Net income/(loss) attributable to Sonoco per common share:
Basic	$	1.25	$	1.12	$	3.77	$	(1.51)
Diluted	$	1.24	$	1.12	$	3.74	$	(1.51)
Cash dividends	$	0.49	$	0.45	$	1.43	$	1.35

No adjustments were made to “Net income/(loss) attributable to Sonoco” in the computations of net income/(loss) attributable to Sonoco per common share.

Anti-dilutive Securities

Potentially dilutive securities are calculated in accordance with the treasury stock method, which assumes the proceeds from the exercise of all dilutive stock appreciation rights (“SARs”) are used to repurchase the Company’s common stock. Certain SARs are not dilutive because either the exercise price is greater than the average market price of the stock during the reporting period or assumed repurchases from proceeds from the exercise of the SARs were anti-dilutive. These SARs may become dilutive in the future if the market price of the Company's common stock appreciates.

The average numbers of SARs that were anti-dilutive and, therefore, not included in the computation of diluted earnings per share during the three- and nine-month periods ended October 2, 2022 and October 3, 2021 were as follows (in thousands):

	Three Months Ended		Nine Months Ended
	October 2, 2022	October 3, 2021	October 2, 2022	October 3, 2021
Anti-dilutive stock appreciation rights	366	—	380	142

Diluted earnings per share is computed by dividing net income by the weighted average shares outstanding, assuming all dilutive potential common shares were issued unless doing so is anti-dilutive. Such securities have an anti-dilutive impact in those periods in which a loss is reported. Diluted net loss per share of common stock for the nine-month period ended October 3, 2021 is the same as basic net loss per share because otherwise dilutive securities are excluded from the computation of diluted net loss per share. The following table sets forth the potentially dilutive securities excluded from the computation of diluted net loss per share during the nine-month period ended October 3, 2021:

	Nine Months Ended
	October 3, 2021
Dilutive securities excluded due to reported loss	469

13

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

Stock Repurchases

On April 20, 2021, the Company's Board of Directors (the “Board”) authorized the repurchase of the Company's common stock in an aggregate amount of up to $350,000. Following several repurchase transactions in 2021, a total of $137,972 remained available for share repurchases under this authorization as of December 31, 2021. No shares were purchased under this authorization during the nine months ended October 2, 2022.

On May 10, 2021, the Company entered into an accelerated share repurchase agreement (“ASR Agreement”) with a financial institution to repurchase outstanding shares of the Company's common stock. In exchange for an upfront payment of $150,000, which was funded with available cash on hand, the financial institution delivered 1,751 initial shares to the Company, representing 80% of the expected number of shares to be repurchased during the repurchase period based upon an estimated average repurchase price of $68.50 per share. The initial shares received were retired by the Company. The final number of shares repurchased and retired were based on the Company's volume-weighted average share price during the repurchase period, less a discount and subject to certain adjustments.

Pursuant to the ASR agreement, the financial institution elected to accelerate the settlement of the transaction in two tranches. On July 21, 2021, the financial institution transferred 168 additional shares to the Company based upon an effective settlement price of $66.52 and a notional value of $50,000, or one third of the total $150,000 prepayment. On July 26, 2021, the financial institution transferred 337 additional shares to the Company upon full settlement of the remaining $100,000 notional value of the transaction at the final settlement price of $66.45.

On May 6, 2021, the Company repurchased 54 shares for $3,615 from a private stockholder based upon the average closing stock price on that day. The cost of these share repurchases, as well as those related to the accelerated share agreement mentioned above, was allocated to “Capital in excess of stated value” on the Company's Condensed Consolidated Balance Sheet for the period ended July 4, 2021.

The Company regularly repurchases shares of its common stock to satisfy employee tax withholding obligations in association with certain share-based compensation awards. These repurchases, which are not part of a publicly announced plan or program, totaled 71 shares during the nine months ended October 2, 2022, at a cost of $4,056, and 100 shares during the nine months ended October 3, 2021, at a cost of $6,039.

Dividend Declarations

On July 20, 2022, the Board of Directors declared a regular quarterly dividend of $0.49 per share. This dividend was paid on September 9, 2022 to all shareholders of record as of August 10, 2022.

On October 18, 2022, the Board of Directors declared a regular quarterly dividend of $0.49 per share. This dividend is payable on December 9, 2022 to all shareholders of record as of November 10, 2022.

Noncontrolling interests

In April 2015, the Company acquired a 67% controlling interest in Graffo Paranaense de Embalagens S/A (“Graffo”). Prior to March 31, 2022, the Company consolidated 100% of Graffo, with the partner's 33% share included in “Noncontrolling Interests” within the equity section of the balance sheet. On March 31, 2022, the Company paid $14,474 in cash to acquire the remaining 33% ownership interest from the three noncontrolling partners, which resulted in a $6,116 reduction in noncontrolling interest, a $7,080 charge to capital in excess of stated value, and a $1,278 reduction to accrued expenses and other on the Company's Condensed Consolidated Balance Sheet as of July 3, 2022.

Note 5: 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.

14

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Restructuring and restructuring-related asset impairment charges	$	20,652	$	3,204	$	33,262	$	4,048
Other asset impairments	—		284		10,095		4,841
Restructuring/Asset Impairment Charges	$	20,652	$	3,488	$	43,357	$	8,889

The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Severance and Termination Benefits	$	9,265	$	3,726	$	13,578	$	7,592
Asset Impairments/(Gains from Disposal of Assets)	3,301		(1,722)		4,533		(8,207)
Other Costs	8,086		1,200		15,151		4,663
Restructuring and restructuring-related asset impairment charges	$	20,652	$	3,204	$	33,262	$	4,048

The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Consumer Packaging	$	4,350	$	2,450	$	8,529	$	3,708
Industrial Paper Packaging	7,674		(1,888)		10,029		(4,827)
All Other	18		555		(399)		3,075
Corporate	8,610		2,087		15,103		2,092
Restructuring and restructuring-related asset impairment charges	$	20,652	$	3,204	$	33,262	$	4,048

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		Asset Impairments/ Disposal of Assets		Other Costs		Total
Accrual Activity
Liability at December 31, 2021	$	10,917	$	—	$	1,873	$	12,790
2022 charges	13,578		4,533		15,151		33,262
Cash (payments)/receipts	(9,966)		4,751		(13,983)		(19,198)
Asset writedowns/disposals	—		(9,284)		—		(9,284)
Foreign currency translation	(229)		—		(41)		(270)
Liability at October 2, 2022	$	14,300	$	—	$	3,000	$	17,300

15

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

“Severance and Termination Benefits” during the first nine months of 2022 includes the cost of severance for approximately 180 employees whose positions were eliminated in conjunction with the Company's ongoing organizational effectiveness efforts.

“Asset Impairments/Disposal of Assets” during the first nine months of 2022 consists primarily of asset impairment charges related to plant closures and the shutdown of operations in the Consumer Packaging and Industrial Paper Packaging segments. These charges were partially offset by gains from the sale of previously impaired assets and closed facilities in the “All Other” group of businesses. Cash proceeds in the first nine months of 2022 relate to the sales of these assets and facilities as well as the partial sale of a previously closed operation in Canada, part of the Industrial Paper Packaging segment.

“Other Costs” during the first nine months of 2022 consists primarily of consulting services and costs related to plant closures including equipment removal, utilities, plant security, property taxes and insurance.

The Company expects to pay the majority of the remaining restructuring reserves by the end of 2022 using cash generated from operations. The Company also expects to recognize future additional charges totaling approximately $8,200 in connection with previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2022. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken.

Other Asset Impairments

The Company recognized other asset impairment charges totaling $10,095 in the nine-month period ended October 2, 2022.

As a result of the Company exiting its operations in Russia, consisting of two small tube and core plants in the Industrial Paper Packaging segment, other asset impairment charges of $9,165 were recognized in the nine-month period ended October 2, 2022. These charges include $3,747 of cumulative translation adjustment losses that were reclassified from accumulated other comprehensive income upon completion of the Company's exit from Russia on July 1, 2022.

Total other asset impairment charges in the nine-month period ended October 2, 2022 also include $930 of fixed asset impairments in the Company's plastics foods operations, part of the Consumer Packaging segment. These assets were determined to be impaired as the value of their projected undiscounted cash flows was no longer sufficient to recover their carrying value.

The Company recognized other asset impairment charges totaling $284 and $4,841 in the three- and nine-month periods ended October 3, 2021, respectively. The year-to-date charges consist of fixed asset impairments totaling $2,442 in the Company's plastics foods operations, part of the Consumer Packaging segment, and $2,399 in the temperature-assured packaging business, part of the All Other group of businesses. The assets were impaired as the value of their projected undiscounted cash flows was determined to no longer be sufficient to recover their carrying value.

These impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s Condensed Consolidated Statements of Income.

16

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

Note 6: Accumulated Other Comprehensive Loss

The following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the nine-month period ended October 2, 2022 and October 3, 2021:

	Foreign Currency Items		Defined Benefit Pension Items		Cash Flow Hedges		Accumulated Other Comprehensive Loss
Balance at December 31, 2021	$	(269,076)	$	(91,397)	$	1,048	$	(359,425)
Other comprehensive (loss)/income before reclassifications	(155,179)		(3,948)		4,136		(154,991)
Amounts reclassified from accumulated other comprehensive loss to net income	3,747		3,072		(4,286)		2,533
Amounts reclassified from accumulated other comprehensive loss to fixed assets	—		—		(642)		(642)
Other comprehensive (loss)/income	(151,432)		(876)		(792)		(153,100)
Balance at October 2, 2022	$	(420,508)	$	(92,273)	$	256	$	(512,525)
Balance at December 31, 2020	$	(194,024)	$	(562,747)	$	(71)	$	(756,842)
Other comprehensive (loss)/income before reclassifications	(57,261)		11,302		7,804		(38,155)
Amounts reclassified from accumulated other comprehensive loss to net loss	—		418,521		(2,403)		416,118
Amounts reclassified from accumulated other comprehensive loss to fixed assets	—		—		(31)		(31)
Other comprehensive (loss)/income	(57,261)		429,823		5,370		377,932
Balance at October 3, 2021	$	(251,285)	$	(132,924)	$	5,299	$	(378,910)

17

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three- and nine-month periods ended October 2, 2022 and October 3, 2021:

	Amount Reclassified from Accumulated Other Comprehensive Loss
	Three Months Ended				Nine Months Ended
Details about Accumulated Other Comprehensive Loss Components	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021		Affected Line Item in the Condensed Consolidated Statements of Income
Foreign currency items
Loss on Russia restructuring(a)	$	—	—		$	(3,747)	—		Restructuring/Asset impairment charges
Gains/(losses) on cash flow hedges
Foreign exchange contracts	559		937		2,425		2,766		Net sales
Foreign exchange contracts	(433)		(711)		(2,139)		(2,129)		Cost of sales
Commodity contracts	2,434		2,051		5,371		2,626		Cost of sales
	2,560		2,277		5,657		3,263		Income/(Loss) before income taxes
Income tax impact	(473)		(607)		(1,371)		(860)		Provision for/(Benefit from) income taxes
	2,087		1,670		4,286		2,403		Net income/(loss)
Defined benefit pension items
Effect of settlement loss(b)	—		(21)		(430)		(547,652)		Non-operating pension costs
Amortization of defined    benefit pension items(b)	(1,229)		(1,640)		(3,655)		(14,973)		Non-operating pension costs
	(1,229)		(1,661)		(4,085)		(562,625)		Income/(Loss) before income taxes
Income tax impact	313		382		1,013		144,104		Provision for/(Benefit from) income taxes
	(916)		(1,279)		(3,072)		(418,521)		Net income/(loss)
Total reclassifications for the period	$	1,171	$	391	$	(2,533)	$	(416,118)	Net income/(loss)

(a) See Note 5 for additional details.

(b) See Note 11 for additional details.

18

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

The following table summarizes the before and after tax amounts for the various components of other comprehensive (loss)/income for the three-month periods ended October 2, 2022 and October 3, 2021:

		Three months ended October 2, 2022							Three months ended October 3, 2021
		Before Tax Amount		Tax (Expense) Benefit		After Tax Amount			Before Tax Amount		Tax (Expense) Benefit		After Tax Amount
Foreign currency items:
	Other comprehensive loss before reclassifications	$	(81,457)	$	—	$	(81,457)		$	(37,077)	$	—	$	(37,077)
	Amounts reclassified from accumulated other    comprehensive loss to net income(a)	—		—		—			—		—		—
	Net other comprehensive loss from foreign currency items	(81,457)		—		(81,457)		—	(37,077)		—		(37,077)
Defined benefit pension items:
	Other comprehensive (loss)/income before reclassifications	(74)		19		(55)			559		(145)		414
	Amounts reclassified from accumulated other    comprehensive loss to net income(b)	1,229		(313)		916			1,661		(382)		1,279
	Net other comprehensive income/(loss) from defined benefit pension items	1,155		(294)		861			2,220		(527)		1,693
Gains and losses on cash flow hedges:
	Other comprehensive income/(loss) before reclassifications	1,336		(247)		1,089			3,525		(940)		2,585
	Amounts reclassified from accumulated other    comprehensive loss to net income(c)	(2,560)		473		(2,087)			(2,277)		607		(1,670)
	Amounts reclassified from accumulated other comprehensive loss to fixed assets	(312)		58		(254)			20		(5)		15
	Net other comprehensive (loss)/ income from cash flow hedges	(1,536)		284		(1,252)			1,268		(338)		930
Other comprehensive (loss)/income		$	(81,838)	$	(10)	$	(81,848)		$	(33,589)	$	(865)	$	(34,454)

(a) See Note 5 for additional details.

(b) See Note 11 for additional details.

(c) See Note 9 for additional details.

19

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

The following table summarizes the before and after tax amounts for the various components of other comprehensive (loss)/income for the nine-month periods ended October 2, 2022 and October 3, 2021:

		Nine-month period ended October 2, 2022						Nine-month period ended October 3, 2021
		Before Tax Amount		Tax (Expense) Benefit		After Tax Amount		Before Tax Amount		Tax (Expense) Benefit		After Tax Amount
Foreign currency items:
	Other comprehensive loss before reclassifications	$	(155,179)	$	—	$	(155,179)	$	(57,261)	$	—	$	(57,261)
	Amounts reclassified from accumulated other    comprehensive loss to net income/(loss)(a)	3,747		—		3,747		—		—		—
	Net other comprehensive loss from foreign currency items	(151,432)		—		(151,432)		(57,261)		—		(57,261)
Defined benefit pension items:
	Other comprehensive (loss)/income before reclassifications	(5,257)		1,309		(3,948)		14,923		(3,621)		11,302
	Amounts reclassified from accumulated other    comprehensive loss to net income/(loss)(b)	4,085		(1,013)		3,072		562,625		(144,104)		418,521
	Net other comprehensive (loss)/income from defined benefit pension items	(1,172)		296		(876)		577,548		(147,725)		429,823
Gains and losses on cash flow hedges:
	Other comprehensive income/(loss) before reclassifications	5,607		(1,471)		4,136		10,536		(2,732)		7,804
	Amounts reclassified from accumulated other    comprehensive loss to net income/(loss)(c)	(5,657)		1,371		(4,286)		(3,263)		860		(2,403)
	Amounts reclassified from accumulated other comprehensive loss to fixed assets	(864)		222		(642)		(42)		11		(31)
	Net other comprehensive (loss)/income from cash flow hedges	(914)		122		(792)		7,231		(1,861)		5,370
Other comprehensive (loss)/ income		$	(153,518)	$	418	$	(153,100)	$	527,518	$	(149,586)	$	377,932

(a) See Note 5 for additional details.

(b) See Note 11 for additional details.

(c) See Note 9 for additional details.

Note 7: Goodwill and Other Intangible Assets

Goodwill

A summary of the changes in goodwill for the nine-month period ended October 2, 2022 is as follows: 

	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Goodwill at December 31, 2021	$	572,416	$	367,780	$	384,305	$	1,324,501
2022 Acquisitions	366,098		5,414		—		371,512
Foreign currency translation	(22,001)		(17,584)		(5,293)		(44,878)
Measurement period adjustments	(9,187)		—		—		(9,187)
Goodwill at October 2, 2022	$	907,326	$	355,610	$	379,012	$	1,641,948

Goodwill activity reflected under the captions “2022 Acquisitions” and “Measurement period adjustments” relate to the January 26, 2022 acquisition of Metal Packaging and the August 31, 2022 acquisition of Nordeste. See Note 3 for additional information.

20

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

The Company assesses goodwill for impairment annually during the third quarter, or from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. The Company completed its most recent annual goodwill impairment testing during the third quarter of 2022 and analyzed certain qualitative and quantitative factors in determining whether a goodwill impairment existed. The Company's assessments reflected a number of significant management assumptions and estimates including the Company's forecast of sales growth, gross profit margins, and discount rates. Changes in these assumptions could materially impact the Company's conclusions. Based on its assessments, the Company concluded that there was no impairment of goodwill for any of its reporting units.

Although no reporting units failed the annual impairment test, in management’s opinion the goodwill balances of the Plastics - Healthcare and Protexic reporting units are at risk of impairment in the near term if each reporting unit's operations do not perform in line with management's expectations, or if there is a negative change in the long-term outlook for the business or in other factors such as the discount rate.

In the annual goodwill impairment analysis completed during the third quarter of 2022, projected future cash flows for the Plastics - Healthcare reporting unit were discounted at 9.8% and its estimated fair value was determined to exceed its carrying value by approximately 18.0%. Based on the discounted cash flow model and holding other valuation assumptions constant, the discount rate would have to be increased to 11.0% in order for the estimated fair value of the reporting unit to fall below carrying value. Total goodwill associated with this reporting unit was $60,710 at October 2, 2022.

In the annual goodwill impairment analysis completed during the third quarter of 2022, projected future cash flows for the Protexic reporting unit were discounted at 9.5% and its estimated fair value was determined to exceed its carrying value by approximately 18.3%. Based on the discounted cash flow model and holding other valuation assumptions constant, the discount rate would have to be increased to 11.5% in order for the estimated fair value of the reporting unit to fall below carrying value. Total goodwill associated with this reporting unit was $29,051 at October 2, 2022.

During the time subsequent to the annual evaluation, and at October 2, 2022, the Company considered whether any events and/or changes in circumstances had resulted in the likelihood that the goodwill of any of its reporting units may have been impaired. It is management's opinion that no such events and/or changes in circumstances have occurred.

Other Intangible Assets

A summary of other intangible assets as of October 2, 2022 and December 31, 2021 is as follows:    

	October 2, 2022		December 31, 2021
Other Intangible Assets, gross:
Patents	$	29,296	$	29,315
Customer lists	1,040,346		592,195
Trade names	31,641		32,043
Proprietary technology	57,608		22,846
Other	2,743		2,807
Total Other Intangible Assets, gross	$	1,161,634	$	679,206
Accumulated Amortization:
Patents	$	(17,497)	$	(16,275)
Customer lists	(392,932)		(347,274)
Trade names	(15,397)		(14,106)
Proprietary technology	(24,038)		(21,394)
Other	(2,047)		(2,014)
Total Accumulated Amortization	$	(451,911)	$	(401,063)
Other Intangible Assets, net	$	709,723	$	278,143

The acquisition of Metal Packaging on January 26, 2022 resulted in the addition of $498,000 of intangible assets, primarily customer lists and proprietary technology, which are expected to be amortized over their average useful lives of approximately 13.6 years. See Note 3 for additional information about the Metal Packaging acquisition.

21

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

Other Intangible Assets are amortized on a straight-line basis over their respective useful lives, which generally range from three to forty years. The Company has no intangible assets with indefinite lives.

Aggregate amortization expense was $20,690 and $12,257 for the three-month periods ended October 2, 2022 and October 3, 2021, respectively, and $60,361 and $37,117 for the nine-month periods ended October 2, 2022 and October 3, 2021, respectively. Amortization expense on other intangible assets is expected to total approximately $80,800 in 2022, $79,100 in 2023, $71,700 in 2024, $61,100 in 2025 and $57,800 in 2026.

Note 8: Debt

Details of the Company's debt at October 2, 2022 and December 31, 2021 are as follows:

	October 2, 2022		December 31, 2021
Commercial paper	$	285,000	$	349,000
Syndicated term loan due February 2025	299,602		—
1.800% notes due February 2025	398,168		—
2.250% notes due February 2027	297,780		—
2.850% notes due February 2032	495,132		—
3.125% notes due May 2030	595,771		595,342
5.750% notes due November 2040	536,206		536,182
Other foreign denominated debt	32,478		55,432
Finance lease obligations	103,027		60,282
Other debt	96,866		14,425
Total debt	$	3,140,030	$	1,610,663
Less current portion and short-term notes	416,929		411,557
Long-term debt	$	2,723,101	$	1,199,106

On January 21, 2022, the Company completed a registered public offering of green bonds with an aggregate principal amount of $1,200,000. These unsecured notes (the “Notes”) consisted of the following:

	Principal Amount		Issuance Costs and Discounts		Net Proceeds		Interest Rate	Maturity
2025 Notes	$	400,000	$	(2,356)	$	397,644	1.800%	February 1, 2025
2027 Notes	300,000		(2,565)		297,435		2.250%	February 1, 2027
2032 Notes	500,000		(5,220)		494,780		2.850%	February 1, 2032
Total	$	1,200,000	$	(10,141)	$	1,189,859

The Notes are senior unsecured obligations and rank equal in right of payment to the Company’s other senior unsecured debt from time to time outstanding. The indenture governing the Notes contains certain covenants with respect to the Company that, among other things, restrict the entry into additional secured indebtedness, sale and leaseback transactions and certain mergers, consolidations and transfers of all or substantially all of the Company’s assets. The Company used an amount equal to the net proceeds from the Notes to partially fund the January 26, 2022 acquisition of Metal Packaging.

Also on January 21, 2022, the Company entered into a $300,000 three-year term loan facility (the “Term Loan Facility”) with a syndicate of eight banks. The full $300,000 was drawn from this facility on January 26, 2022, and the proceeds used to partially fund the acquisition of Metal Packaging. Interest is assessed at the Secured Overnight Financing Rate (“SOFR”) plus a margin based on a pricing grid that uses the Company’s credit ratings. The current SOFR margin is 122.5 basis points. There is no required amortization and repayment can be accelerated at any time without penalty at the Company's discretion. Borrowings under the Term Loan Facility mature on January 27, 2025.

On April 28, 2021, the Company commenced a cash tender offer to purchase up to $300,000 of the $600,000 then-outstanding principal amount of its 5.750% notes due November 2040. Upon expiration of the tender offer on May 25, 2021, the Company repurchased 10.53% of its outstanding 5.750% notes for a total cash cost of $81,961, as shown below:

22

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

	Principal Amount Tendered		Premium and Other Amounts Paid		Total Cash Paid
5.750% notes due November 2040	$	63,206	$	18,755	$	81,961

On April 28, 2021, the Company entered into a reverse treasury lock agreement intended to fix the cash cost to fund approximately $100,000 of the maximum $300,000 principal amount subject to being tendered. The settlement of the reverse treasury lock on May 13, 2021 resulted in a loss of $1,356. In addition, the Company wrote off a proportional share of unamortized bond issuance costs and unamortized original issue discounts associated with the 5.750% notes. These non-cash writeoffs net to $73, which combined with the hedge loss and premium and other amounts paid, resulted in a pretax loss from the early extinguishment of debt totaling $20,184 during the second quarter of 2021.

The Company's 150,000 euro-denominated loan, which bore 1% annual interest, matured on May 25, 2021, and a U.S. dollar equivalent cash payment of $177,780 was made to settle the debt. On April 7, 2021, the Company entered into two forward contracts to buy a total of 150,000 euros in order to manage foreign currency risk related to the Company's funding of the debt repayment upon maturity. The Company recognized a gain of $4,387 upon the May 21, 2021 maturity of these forward contracts. The gain is included in “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income for the nine-month period ended October 3, 2021 and the proceeds from the settlement of the contracts and the debt maturity payment are reflected in “Net cash provided/(used) by financing activities” in the Company’s Condensed Consolidated Statement of Cash Flows for the nine months ended October 3, 2021.

Certain of the Company’s debt agreements impose restrictions with respect to the maintenance of financial ratios and the disposition of assets. The most restrictive covenants currently require the Company to maintain a minimum level of interest coverage and a minimum level of net worth, as defined in the agreements. As of October 2, 2022, the Company’s interest coverage and net worth were substantially above the minimum levels required under these covenants.

Note 9: 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.

	October 2, 2022				December 31, 2021
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, net of current portion	$	2,723,101	$	2,444,965	$	1,199,106	$	1,434,711

The carrying value of cash and cash equivalents and short-term debt approximates fair value. The fair value of long-term debt is determined based on recent trade information in the financial markets of the Company’s public debt or is determined by discounting future cash flows using interest rates available to the Company for issues with similar terms and maturities which is considered a Level 2 fair value measurement.

Cash Flow Hedges

At October 2, 2022 and December 31, 2021, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows. These contracts, which have maturities ranging to December 2024, qualify as cash flow hedges under U.S. GAAP. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item.

23

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

Commodity Cash Flow Hedges

Certain derivative contracts entered into to manage the cost of anticipated purchases of natural gas and aluminum have been designated by the Company as cash flow hedges. At October 2, 2022, these contracts included natural gas swaps covering approximately 600,000 MMBTUs. These contracts represented approximately 24% of anticipated usage in North America for the remainder of 2022 and 1% of anticipated usage in both 2023 and 2024. The Company also has certain natural gas hedges that it does not treat as cash flow hedges. See “Non-Designated Derivatives” below for a discussion of these hedges. The fair value of the Company’s commodity cash flow hedges netted to a gain position of $1,892 and $1,491 at October 2, 2022 and December 31, 2021, respectively. The amount of the gain included in Accumulated Other Comprehensive Income at October 2, 2022 expected to be reclassified to the income statement during the next twelve months is $1,881.

Foreign Currency Cash Flow Hedges

The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales, purchases, and capital spending expected to occur in 2022 and 2023. The net positions of these contracts at October 2, 2022 were as follows (in thousands):

Currency	Action	Quantity
Colombian peso	purchase	7,354,331
Mexican peso	purchase	123,095
Polish zloty	purchase	22,382
Czech koruna	purchase	16,675
Euro	purchase	9,989
Turkish lira	purchase	5,086
Canadian dollar	purchase	3,798
British pound	purchase	819

The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to a loss position of $(36) and a gain position of $336 at October 2, 2022 and December 31, 2021, respectively. Losses of $(36) are expected to be reclassified from accumulated other comprehensive loss to the income statement during the next twelve months. In addition, the Company has entered into forward contracts to hedge certain foreign currency cash flow transactions related to construction in progress. As of October 2, 2022 and December 31, 2021, the net position of these contracts was $(1,476) and $(457), respectively. During the nine-month period ended October 2, 2022, losses from these hedges totaling $864 were reclassified from accumulated other comprehensive loss and included in the carrying value of the capitalized expenditures. Losses of $1,476 are expected to be reclassified from accumulated other comprehensive loss and included in the carrying value of the related fixed assets acquired during the next twelve months.

Non-Designated Derivatives

The Company routinely enters into other derivative contracts which are not designated for hedge accounting treatment under ASC 815. As such, changes in fair value of these non-designated derivatives are recorded directly to income and expense in the periods that they occur.

Foreign Currency Hedges

The Company routinely enters into forward contracts or swaps to economically hedge the currency exposure of intercompany debt and foreign currency denominated receivables and payables. The net currency positions of these non-designated contracts at October 2, 2022, were as follows (in thousands):

Currency	Action	Quantity
Colombian peso	purchase	24,748,486
Indonesian rupiah	purchase	8,083,663
Mexican peso	purchase	419,703
Turkish lira	purchase	44,125
Canadian dollar	purchase	9,568
Thai baht	sell	(11,143)

24

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

Commodity Hedges

The Company has entered into non-designated derivative contracts to manage the cost of anticipated purchases of natural gas. At October 2, 2022, these contracts consisted of natural gas swaps covering approximately 8.2 million MMBTUs and represented approximately 47% of anticipated usage in North America for the remainder of 2022 and 69% and 17% of anticipated usage in 2023 and 2024, respectively.

Interest Rate Hedges

Pursuant to the registered public offering of unsecured 2.850% notes with a principal amount of $500,000 maturing on February 1, 2032, the Company entered into treasury lock derivative instruments with two banks, with a notional principal amount of $150,000 each on December 29, 2021. These instruments had the risk management objective of reducing exposure to the Company of increases in the underlying Treasury index up to the date of pricing of the notes. The fair value of the contracts was a net loss position of $(550) at December 31, 2021. The derivatives were settled when the bonds priced on January 11, 2022, with the Company recognizing a gain on the settlement of $5,201. The gain is included in “Selling, general and administrative expenses” on the Company's Condensed Consolidated Statements of Income for the nine-month period ended October 2, 2022.

The fair value of the Company’s non-designated derivatives position was a gain of $2,369 and $92 at October 2, 2022 and December 31, 2021, respectively.

The following table sets forth the location and fair values of the Company’s derivative instruments at October 2, 2022 and December 31, 2021:

Description	Balance Sheet Location	October 2, 2022		December 31, 2021
Derivatives designated as hedging instruments:
Commodity Contracts	Prepaid expenses	$	1,905	$	1,599
Commodity Contracts	Other assets	$	23	$	—
Commodity Contracts	Accrued expenses and other	$	(25)	$	(108)
Commodity Contracts	Other liabilities	$	(11)	$	—
Foreign Exchange Contracts	Prepaid expenses	$	3,098	$	848
Foreign Exchange Contracts	Accrued expenses and other	$	(4,610)	$	(969)
Derivatives not designated as hedging instruments:
Commodity Contracts	Prepaid expenses	$	5,069	$	1,815
Commodity Contracts	Other assets	$	689	$	—
Commodity Contracts	Accrued expenses and other	$	(2,497)	$	(1,132)
Commodity Contracts	Other liabilities	$	(812)	$	—
Foreign Exchange Contracts	Prepaid expenses	$	237	$	135
Foreign Exchange Contracts	Accrued expenses and other	$	(317)	$	(176)
Interest Rate Lock Contract	Accrued expenses and other	$	—	$	(550)

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.

25

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three-month periods ended October 2, 2022 and October 3, 2021, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures:

Description	Amount of Gain or (Loss) Recognized in OCI on Derivatives		Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income
Derivatives in Cash Flow Hedging Relationships:
Three-month period ended October 2, 2022
Foreign Exchange Contracts	$	(290)	Net sales	$	559
			Cost of sales	$	(433)
Commodity Contracts	$	1,626	Cost of sales	$	2,434
Three-month period ended October 3, 2021
Foreign Exchange Contracts	$	(407)	Net sales	$	937
			Cost of sales	$	(711)
Commodity Contracts	$	4,200	Cost of sales	$	2,051

 

Description	Gain or (Loss) Recognized		Location of Gain or (Loss) Recognized in Income Statement
Derivatives not Designated as Hedging Instruments:
Three-month period ended October 2, 2022
Commodity Contracts	$	2,574	Cost of sales
Foreign Exchange Contracts	$	(484)	Selling, general and administrative
Three-month period ended October 3, 2021
Commodity Contracts	$	2,861	Cost of sales
Foreign Exchange Contracts	$	(675)	Selling, general and administrative

	Three-month period ended October 2, 2022				Three-month period ended October 3, 2021
Description	Revenue		Cost of sales		Revenue		Cost of sales
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income	$	559	$	2,001	$	937	$	1,340
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	$	559	$	(433)	$	937	$	(711)
Commodity contracts:
Amount of gain reclassified from accumulated other comprehensive loss into net income	$	—	$	2,434	$	—	$	2,051

26

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the nine months ended October 2, 2022 and October 3, 2021, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures:

Description	Amount of Gain or (Loss) Recognized in OCI on Derivatives		Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income
Derivatives in Cash Flow Hedging Relationships:
Nine-month period ended October 2, 2022
Foreign Exchange Contracts	$	(202)	Net sales	$	2,425
			Cost of sales	$	(2,139)
Commodity Contracts	$	5,809	Cost of sales	$	5,371
Nine-month period ended October 3, 2021
Foreign Exchange Contracts	$	156	Net sales	$	2,766
			Cost of sales	$	(2,129)
Commodity Contracts	$	10,801	Cost of sales	$	2,626

 

Description	Gain or (Loss) Recognized		Location of Gain or (Loss) Recognized in Income Statement
Derivatives not Designated as Hedging Instruments:
Nine-month period ended October 2, 2022
Commodity Contracts	$	10,072	Cost of sales
Foreign Exchange Contracts	$	(283)	Selling, general and administrative
Nine-month period ended October 3, 2021
Commodity Contracts	$	3,295	Cost of sales
Foreign Exchange Contracts	$	(906)	Selling, general and administrative

	Nine-month period ended October 2, 2022				Nine-month period ended October 3, 2021
Description	Revenue		Cost of sales		Revenue		Cost of sales
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income	$	2,425	$	3,232	$	2,766	$	497
Gain or (loss) on cash flow hedging relationships:
Foreign exchange contracts:
Amount of gain/(loss) reclassified from accumulated other comprehensive income into net income	$	2,425	$	(2,139)	$	2,766	$	(2,129)
Commodity contracts:
Amount of gain reclassified from accumulated other comprehensive income into net income	$	—	$	5,371	$	—	$	2,626

27

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

Note 10: 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:

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

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:

Description	October 2, 2022		Assets measured at NAV		Level 1		Level 2		Level 3
Hedge derivatives, net:
Commodity contracts	$	1,892	$	—	$	—	$	1,892	$	—
Foreign exchange contracts	$	(1,512)	$	—	$	—	$	(1,512)	$	—
Non-hedge derivatives, net:
Commodity contracts	$	2,449	$	—	$	—	$	2,449	$	—
Foreign exchange contracts	$	(80)	$	—	$	—	$	(80)	$	—
Description	December 31, 2021		Assets measured at NAV		Level 1		Level 2		Level 3
Hedge derivatives, net:
Commodity contracts	$	1,491	$	—	$	—	$	1,491	$	—
Foreign exchange contracts	$	(121)	$	—	$	—	$	(121)	$	—
Non-hedge derivatives, net:
Commodity contracts	$	683	$	—	$	—	$	683	$	—
Foreign exchange contracts	$	(41)	$	—	$	—	$	(41)	$	—
Interest rate lock contract	$	(550)	$	—	$	—	$	(550)	$	—

As discussed in Note 9, the Company uses derivatives to mitigate the effect of commodity fluctuations, foreign currency fluctuations and, from time to time, interest rate movements. Fair value measurements for the Company’s derivatives are classified under Level 2 because such measurements are estimated based on observable inputs such as interest rates, yield curves, spot and future commodity prices and spot and future exchange rates.

The Company does not currently have any non-financial assets or liabilities that are recognized or disclosed at fair value on a recurring basis. None of the Company’s financial assets or liabilities are measured at fair value using significant unobservable inputs. There were no transfers in or out of Level 1 or Level 2 fair value measurements during the three- and nine-month periods ended October 2, 2022.

28

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

Note 11: 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:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Retirement Plans
Service cost	$	796	$	968	$	2,459	$	2,949
Interest cost	2,593		2,287		7,974		22,051
Expected return on plan assets	(2,527)		(3,361)		(7,670)		(21,672)
Amortization of prior service cost	220		226		673		687
Amortization of net actuarial loss	1,179		1,600		3,495		14,849
Effect of settlement loss	—		21		430		547,652
Net periodic benefit cost	$	2,261	$	1,741	$	7,361	$	566,516
Retiree Health and Life Insurance Plans
Service cost	$	80	$	93	$	241	$	282
Interest cost	64		49		194		149
Expected return on plan assets	(110)		(111)		(332)		(335)
Amortization of net actuarial gain	(170)		(186)		(513)		(563)
Net periodic benefit income	$	(136)	$	(155)	$	(410)	$	(467)

Settlement Charges

The Company recognized settlement charges of $430 and $361 during the nine-month periods ended October 2, 2022 and October 3, 2021, respectively. These charges resulted from payments made to certain participants in the Company's non-union Canadian pension plan who elected a lump sum distribution option upon retirement. Additional settlement charges related to the Canadian pension plans may be recognized over the remainder of 2022 as a result of ongoing lump-sum distributions.

The Company terminated the Sonoco Pension Plan for Inactive Participants (the “Inactive Plan”), a tax-qualified defined benefit plan, effective September 30, 2019, and settled the liabilities of the Inactive Plan in the second quarter of 2021 through a combination of lump-sum payments and the purchase of group annuity contracts, resulting in the recognition of non-cash, pre-tax settlement charges totaling $547,291 in the second quarter of 2021.

Contributions

The Company made aggregate contributions of $11,600 and $142,615 to its defined benefit retirement and retiree health and life insurance plans during the nine-month periods ended October 2, 2022 and October 3, 2021, respectively. The 2021 contributions include $133,000 contributed to the Inactive Plan during the second quarter of 2021 in order for it to be fully funded upon final settlement. The Company expects to make additional aggregate contributions of approximately $4,100 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2022.

Sonoco Retirement and Savings Plan

The Sonoco Retirement and Savings Plan is a defined contribution retirement plan provided for certain of the Company’s U.S. employees. The plan is comprised of both an elective and non-elective component.

The elective component of the plan, which is designed to meet the requirements of Section 401(k) of the Internal Revenue Code, allows participants to set aside a portion of their wages and salaries for retirement and encourages saving

29

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

by matching a portion of their contributions with contributions from the Company. The plan provides for participant contributions of 1% to 100% of gross pay. Effective January 1, 2022, the Company’s match on elective contributions to the plan increased from 50% of the first 4% of compensation contributed by participants to 100% of the first 6% as a result of changes to the plan, described below.

The non-elective component of the plan, the Sonoco Retirement Contribution (“SRC”), was eliminated effective January 1, 2022. The SRC provided for an annual Company contribution equal to 4% of the participant's eligible pay plus 4% of eligible pay in excess of the social security wage base to eligible participant accounts. SRC contributions were funded annually in the first quarter, following the year in which the benefit was earned. SRC contributions totaled $21,948 and $22,665 during the nine-month periods ended October 2, 2022 and October 3, 2021, respectively. No additional SRC contributions will occur. The Company recognized expense related to the SRC of $5,456 and $17,290 for the three- and nine-month periods ended October 3, 2021, respectively.

Note 12: Income Taxes

The Company’s effective tax rates for the three- and nine-month periods ended October 2, 2022 were 23.7% and 24.5%, respectively, and its rates for the three- and nine-month periods ended October 3, 2021 were 2.3% and 37.0%, respectively. The Company's effective tax rates varied from the U.S. statutory rate due primarily to rate differences between U.S. and non-U.S. jurisdictions and the relative amounts earned in those jurisdictions, state income taxes, and discrete tax adjustments that were not consistent year over year. The higher 2022 rate was primarily driven by the absence of the 2021 benefit associated with the amendment of the Company’s 2017 tax return to report increased utilization of its foreign tax credits.

The Company and/or its subsidiaries file federal, state and local income tax returns in the United States and various foreign jurisdictions. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years prior to 2016.

The Company’s reserve for uncertain tax benefits has increased by $1,614 since December 31, 2021 due primarily to an increase in reserves related to existing tax positions. The Company believes that it is reasonably possible that the amount reserved for unrecognized tax benefits at October 2, 2022 could increase by approximately $200 over the next twelve months. Although the Company’s estimate for the potential outcome for any uncertain tax issue is highly judgmental, management believes that any reasonably foreseeable outcomes related to these matters have been adequately provided for. However, future results may include favorable or unfavorable adjustments to estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. Additionally, the jurisdictions in which earnings or deductions are realized may differ from current estimates. As a result, the Company’s effective tax rate may fluctuate significantly on a quarterly basis. The Company has operations and pays taxes in many countries outside of the U.S. and taxes on those earnings are subject to varying rates. The Company is not dependent upon the favorable benefit of any one jurisdiction to an extent that the loss of such benefit would have a material effect on the Company’s overall effective tax rate. 

Note 13: Leases

The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, and warehouses), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company's lease contracts is performed after contemplating all the relevant facts and circumstances in accordance with guidance under ASC 842. Most real estate leases, in particular, include one or more options to renew, with renewal terms that typically extend the lease term in increments from one to five years. The Company's leases do not have any significant residual value guarantees or restrictive covenants.

As the implicit rate in the Company's leases is normally not readily determinable, the Company generally calculates its lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years.

The Company completed the acquisition of Metal Packaging on January 26, 2022. The acquisition included both operating and finance lease assets and liabilities. The acquired operating lease liabilities of $33,910 had a weighted average remaining lease maturity term and discount rate of 11.0 years and 2.8%, respectively, and the acquired finance

30

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

lease liabilities of $46,687 had a weighted average remaining lease maturity term and discount rate of 3.8 years and 7.5%, respectively, as of the date of the acquisition.

The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at October 2, 2022 and December 31, 2021:

Classification	Balance Sheet Location	October 2, 2022		December 31, 2021
Lease Assets
Operating lease assets	Right of Use Asset - Operating Leases	$	296,838	$	268,390
Finance lease assets	Other Assets	103,540		55,826
Total lease assets		$	400,378	$	324,216
Lease Liabilities
Current operating lease liabilities	Accrued expenses and other	$	49,606	$	45,305
Current finance lease liabilities	Notes payable and current portion of debt	16,115		6,952
Total current lease liabilities		$	65,721	$	52,257
Noncurrent operating lease liabilities	Noncurrent Operating Lease Liabilities	$	253,466	$	234,167
Noncurrent finance lease liabilities	Long-term Debt, Net of Current Portion	86,912		53,330
Total noncurrent lease liabilities		$	340,378	$	287,497
Total lease liabilities		$	406,099	$	339,754

Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term.

The following table sets forth the components of the Company’s total lease cost for the three- and nine-month periods ended October 2, 2022 and October 3, 2021:

		Three Months Ended				Nine Months Ended
Lease Cost		October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Operating lease cost	(a)	$	12,863	$	11,623	$	38,679	$	36,720
Finance lease cost:
Amortization of lease asset	(a)	3,133		1,476		9,122		4,133
Interest on lease liabilities	(b)	1,270		367		3,517		997
Variable lease cost	(a) (c)	7,894		6,796		22,416		19,569
Impairment charges	(d)	61		—		293		—
Total lease cost		$	25,221	$	20,262	$	74,027	$	61,419

(a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively.

(b) Included in interest expense.

(c) Also includes short term lease costs, which are deemed immaterial.

(d) Impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s

Consolidated Statements of Income. See Note 5 for more information.

31

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

The following table sets forth certain lease-related information for the nine-month periods ended October 2, 2022 and October 3, 2021:

	Nine Months Ended
	October 2, 2022		October 3, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$	39,405	$	38,757
Operating cash flows used by finance leases	$	3,517	$	997
Financing cash flows used by finance leases	$	9,181	$	3,375
Noncash investing and financing activities:
Leased assets obtained in exchange for new operating lease liabilities	$	31,048	$	12,230
Leased assets obtained in exchange for new finance lease liabilities	$	8,224	$	7,071
Modification to leased assets for increase in operating lease liabilities	$	2,258	$	12,059
Modification to leased assets for (decrease)/increase in finance lease liabilities	$	(642)	$	9,586
Termination reclasses to decrease operating lease assets	$	(4,133)	$	(4,971)
Termination reclasses to decrease operating lease liabilities	$	(4,382)	$	(5,278)
Termination reclasses to decrease finance lease assets	$	(1,351)	$	(33)
Termination reclasses to decrease finance lease liabilities	$	(87)	$	(40)

32

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

Note 14: Revenue Recognition

The Company records revenue when control is transferred to the customer, which is either upon shipment or over time in cases where the Company is entitled to payment with margin for products produced that are customer specific without alternative use. The Company recognizes over time revenue under the input method as goods are produced. Revenue that is recognized at a point in time is recognized when the customer obtains control of the goods. Customers obtain control either when goods are delivered to the customer facility, if the Company is responsible for arranging transportation, or when picked up by the customer's designated carrier. The Company commonly enters into Master Supply Arrangements with customers to provide goods and/or services over specific time periods. Customers submit purchase orders with quantities and prices to create a contract for accounting purposes. Shipping and handling expenses are included in “Cost of Sales,” and freight charged to customers is included in “Net Sales” in the Company's Condensed Consolidated Statements of Income.

The Company has rebate agreements with certain customers. These rebates are recorded as reductions of revenue and are accrued using sales data and rebate percentages specific to each customer agreement. Accrued customer rebates are included in “Accrued expenses and other” in the Company’s Condensed Consolidated Balance Sheets.

Payment terms under the Company's sales arrangements are short term, generally no longer than 120 days. The Company does provide prompt payment discounts to certain customers if invoices are paid within a predetermined period. Prompt payment discounts are treated as a reduction of revenue and are determinable within a short time period following the sale.

The following tables set forth the effects of contract assets and liabilities from contracts with customers. Contract assets and liabilities are reported in “Other receivables” and “Accrued expenses and other,” respectively, on the Company’s Condensed Consolidated Balance Sheets.

	October 2, 2022		December 31, 2021
Contract Assets	$	67,254	$	51,106
Contract Liabilities	$	(28,427)	$	(18,993)

Significant changes in the contract assets and liabilities balances during the nine-month period ended October 2, 2022 and the year ended December 31, 2021 were as follows:

	October 2, 2022				December 31, 2021
	Contract Asset		Contract Liability		Contract Asset		Contract Liability
Beginning Balance	$	51,106	$	(18,993)	$	48,390	$	(16,687)
Acquired as part of a business combination	8,107		(5,588)		—		—
Revenue deferred or rebates accrued	—		(47,303)		—		(36,527)
Recognized as revenue			14,430				7,238
Rebates paid to customers	—		29,027		—		26,983
Increases due to rights to consideration for customer specific goods produced, but not billed during the period	67,254		—		51,106		—
Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combinations	(59,213)		—		(48,390)		—
Ending Balance	$	67,254	$	(28,427)	$	51,106	$	(18,993)

Contract assets and liabilities are generally short in duration given the nature of products produced by the Company. Contract assets represent goods produced without alternative use for which the Company is entitled to payment with margin prior to shipment. Upon shipment, the Company is entitled to bill the customer, and therefore amounts included in contract assets will be reduced with the recording of an account receivable as they represent an unconditional right to payment. Contract liabilities represent revenue deferred due to pricing mechanisms utilized by the Company in certain multi-year arrangements, volume rebates, and payments received in advance. For multi-year arrangements with pricing

33

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

mechanisms, the Company will generally defer revenue during the first half of the arrangement and will release the deferral over the back half of the contract term. The Company’s reportable segments are aligned by product nature as disclosed in Note 15.

The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended October 2, 2022 and October 3, 2021. The tables also include a reconciliation of disaggregated revenue with reportable segments.

Three-month period ended October 2, 2022	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	837,048	$	405,382	$	165,476	$	1,407,906
Europe	101,665		99,804		19,811		221,280
Canada	30,154		28,471		—		58,625
Asia	25,492		65,475		185		91,152
Other	36,190		62,320		12,743		111,253
Total	$	1,030,549	$	661,452	$	198,215	$	1,890,216

Three-month period ended October 3, 2021	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	408,295	$	370,659	$	145,029	$	923,983
Europe	109,566		99,573		24,033		233,172
Canada	31,612		24,187		—		55,799
Asia	20,728		81,097		393		102,218
Other	28,768		59,714		11,539		100,021
Total	$	598,969	$	635,230	$	180,994	$	1,415,193

34

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

The following tables set forth information about revenue disaggregated by primary geographic regions for the nine-month periods ended October 2, 2022 and October 3, 2021. The tables also include a reconciliation of disaggregated revenue with reportable segments.

Nine-month period ended October 2, 2022	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	2,282,559	$	1,259,348	$	493,136	$	4,035,043
Europe	331,745		334,007		66,500		732,252
Canada	89,342		84,952		—		174,294
Asia	74,533		215,896		748		291,177
Other	110,451		193,778		37,535		341,764
Total	$	2,888,630	$	2,087,981	$	597,919	$	5,574,530

Nine-month period ended October 3, 2021	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	1,219,666	$	1,042,249	$	461,996	$	2,723,911
Europe	334,995		300,495		67,371		702,861
Canada	87,948		69,218		—		157,166
Asia	60,256		232,657		914		293,827
Other	76,660		164,540		32,286		273,486
Total	$	1,779,525	$	1,809,159	$	562,567	$	4,151,251

Note 15: Segment Reporting

The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other.

The Consumer Packaging segment primarily serves prepared and fresh food markets along with other packaging for consumer products. The products produced and sold within the Consumer Packaging segment are generally used to package a variety of consumer products and consist primarily of round and shaped rigid paper containers; steel tinplate cans and aerosol containers; thermoformed plastic trays and containers; and flexible packaging. Total assets of the Consumer Packaging segment increased by $1,661,573 upon the acquisition of Metal Packaging on January 26, 2022.

The Industrial Paper Packaging segment serves customers who use its products to package their goods for transport, storage or sale or to produce similar fiber-based products. The primary products produced and sold within this segment include fiber-based tubes, cones, and cores; fiber-based protective packaging and components; reels; and recycled paperboard.

Businesses grouped as All Other include healthcare packaging, protective and retail security packaging and industrial plastic products. These businesses include the following products and services: thermoformed rigid plastic trays and devices; custom-engineered molded foam protective packaging and components; temperature-assured packaging; injection molded and extruded containers, spools and parts; retail security packaging, including printed backer cards, thermoformed blisters and heat-sealing equipment; and paper amenities. Prior to the divestiture of the Company’s U.S. display and packaging business on April 4, 2021, this business, which included point-of-purchase displays, fulfillment operations, and contract packaging, was reported in All Other.

35

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

The following table sets forth net sales, intersegment sales and operating profit for the Company’s reportable segments and All Other. “Segment operating profit” is defined as the segment’s portion of “Operating profit” excluding restructuring and asset impairment charges, acquisition expenses, amortization of acquisition intangibles, changes in last-in, first-out (“LIFO”) inventory reserves, losses from the early extinguishment of debt, interest income and expense, income taxes or certain other items, if any, the exclusion of which the Company believes improves comparability and analysis of the financial performance of the business. General corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and All Other. Effective January 1, 2022, the Company changed its measure of segment operating profit to exclude amortization of acquisition intangibles. Accordingly, the prior year’s segment operating profit has been revised to conform with the current presentation for comparability.

SEGMENT FINANCIAL INFORMATION 

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Net sales:
Consumer Packaging	$	1,030,549	$	598,969	$	2,888,630	$	1,779,525
Industrial Paper Packaging	661,452		635,230		2,087,981		1,809,159
All Other	198,215		180,994		597,919		562,567
Net sales	$	1,890,216	$	1,415,193	$	5,574,530	$	4,151,251
Intersegment sales:
Consumer Packaging	$	1,663	$	1,608	$	5,189	$	4,460
Industrial Paper Packaging	33,936		27,975		101,072		82,571
All Other	2,532		2,318		7,755		7,483
Intersegment sales	$	38,131	$	31,901	$	114,016	$	94,514
Operating profit:
Segment operating profit:
Consumer Packaging	$	127,859	$	66,341	$	440,889	$	212,997
Industrial Paper Packaging	81,859		55,451		248,721		167,568
All Other	15,373		12,895		46,426		47,259
Segment operating profit	225,091		134,687		736,036		427,824
Restructuring/Asset impairment charges	(20,652)		(3,488)		(43,357)		(8,889)
Amortization of acquisition intangibles	(20,690)		(12,257)		(60,361)		(37,117)
Other non-base (charges)/income, net	(1,807)		7,570		(83,838)		294
Operating profit	181,942		126,512		548,480		382,112

Note 16: Commitments and Contingencies

Pursuant to U.S. GAAP, accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and that the amounts are reasonably estimable. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings from a variety of sources. Some of these exposures, as discussed below, have the potential to be material.

Environmental Matters

The Company is subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which it operates.

Spartanburg

In connection with its acquisition of Tegrant in November 2011, the Company identified potential environmental contamination at a site in Spartanburg, South Carolina. Since the acquisition, the Company has spent a total of $1,943 on remediation of the Spartanburg site. At October 2, 2022 and December 31, 2021, the Company's accrual for environmental contingencies related to the Spartanburg site totaled $5,458 and $5,555, respectively.

36

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

The Company cannot currently estimate its potential liability, damages or range of potential loss, if any, beyond the amounts accrued with respect to this exposure. However, the Company does not believe that the resolution of this matter has a reasonable possibility of having a material adverse effect on the Company's financial statements.

Other environmental matters

The Company has been named as a potentially responsible party at several other environmentally contaminated sites. All of the sites are also the responsibility of other parties. The potential remediation liabilities are shared with such other parties, and, in most cases, the Company’s share, if any, cannot be reasonably estimated at the current time. However, the Company does not believe that the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company's financial statements. At October 2, 2022 and December 31, 2021, the Company's accrual for these other sites totaled $1,604 and $1,825, respectively.

Summary

As of October 2, 2022 and December 31, 2021, the Company (and its subsidiaries) had accrued $7,062 and $7,380, respectively, related to environmental contingencies. These accruals are included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets.

Other Legal Matters

In addition to those matters described above, the Company is subject to other various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters could differ from management’s expectations, the Company does not believe the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s financial statements.

37

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Sonoco Products Company,

Results of Review of Interim Financial Statements

We have reviewed the accompanying condensed consolidated balance sheet of Sonoco Products Company and its subsidiaries (the “Company”) as of October 2, 2022, and the related condensed consolidated statements of income, comprehensive income, and changes in total equity for the three-month and nine-month periods ended October 2, 2022 and October 3, 2021 and the condensed consolidated statements of cash flows for the nine-month periods ended October 2, 2022 and October 3, 2021, including the related notes (collectively referred to as the “interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2021, and the related consolidated statements of income, comprehensive income, changes in total equity and of cash flows for the year then ended (not presented herein), and in our report dated February 28, 2022, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2021, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These interim financial statements are the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ PricewaterhouseCoopers LLP

Charlotte, North Carolina

November 2, 2022

38

SONOCO PRODUCTS COMPANY

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Statements included in this Quarterly Report on Form 10-Q that are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements” for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. In addition, the Company and its representatives may from time to time make other oral or written statements that are also “forward-looking statements.” Words such as “anticipate,” “assume,” “believe,” “can,” “committed,” “consider,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “intend,” “may,” “might,” “objective,” “opportunity,” “outlook,” “plan,” “potential,” “project,” “seek," “should,” “strategy,” “target,” “will,” “would,” or the negative thereof, and similar expressions identify forward-looking statements. Forward-looking statements in this Quarterly Report on Form 10-Q include, but are not limited to, statements regarding:

•availability and supply of raw materials, and offsetting high raw material costs, including the potential impact of changes in tariffs;

•potential impacts of the COVID-19 pandemic on the Company's business, operations and financial condition;

•consumer and customer actions in connection with the COVID-19 pandemic;

•improved productivity and cost containment;

•improving margins and leveraging strong cash flow and financial position;

•effects of pending and completed acquisitions and divestitures, including the acquisitions of Metal Packaging and Skjern;

•realization of synergies resulting from acquisitions, including the acquisition of Metal Packaging;

•costs, timing and effects of restructuring activities;

•adequacy and anticipated amounts and uses of cash flows;

•expected amounts of capital spending;

•refinancing and repayment of debt;

•financial and business strategies and the results expected of them;

•financial results for future periods;

•producing improvements in earnings;

•profitable sales growth and rates of growth;

•strategic pricing initiatives;

•statements about supply constraints or logistics challenges;

•market leadership;

•the efficiency, capacity, and competitiveness of the Company’s production capabilities and anticipated cost savings related thereto;

•research and development spending;

•expected impact and costs of resolution of legal proceedings;

•extent of, and adequacy of provisions for, environmental liabilities and sustainability commitments;

•commitments to reduce greenhouse gas emissions;

•adequacy of income tax provisions, realization of deferred tax assets, outcomes of uncertain tax issues and tax rates;

•goodwill impairment charges and fair values of reporting units;

•future asset impairment charges and fair values of assets;

•anticipated contributions to pension and postretirement benefit plans, fair values of plan assets, long-term rates of return on plan assets, and projected benefit obligations and payments;

•expected impact of implementation of new accounting pronouncements;

•creation of long-term value and returns for shareholders;

•continued payment of dividends; and

•planned stock repurchases.

Such forward-looking statements are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management. Such information includes, without limitation, discussions as to guidance and other estimates, perceived opportunities, expectations, beliefs, plans, strategies, goals and objectives concerning our future financial and operating performance. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially from those expressed or forecasted in such forward-looking statements. The risks, uncertainties and assumptions include, without limitation:

39

SONOCO PRODUCTS COMPANY

•availability and pricing of raw materials, energy and transportation, including the impact of potential changes in tariffs or sanctions and escalating trade wars and the impact of war and other geopolitical tensions (such as the ongoing Russia-Ukraine conflict and economic sanctions related thereto), and the Company’s ability to pass raw material, energy and transportation price increases and surcharges through to customers or otherwise manage these commodity pricing risks;

•impacts arising as a result of the COVID-19 pandemic on our results of operations, financial condition, value of assets, liquidity, prospects, growth, and on the industries in which we operate and that we serve, resulting from, without limitation, recent and ongoing financial market volatility, potential governmental actions, changes in consumer behaviors and demand, changes in customer requirements, disruptions to the Company’s suppliers and supply chain, availability of labor and personnel, necessary modifications to operations and business, and uncertainties about the extent and duration of the pandemic;

•costs of labor;

•work stoppages due to labor disputes;

•success of new product development, introduction and sales;

•success of implementation of new manufacturing technologies and installation of manufacturing equipment, including the startup of new facilities and lines;

•consumer demand for products and changing consumer preferences;

•ability to be the low-cost global leader in customer-preferred packaging solutions within targeted segments;

•competitive pressures, including new product development, industry overcapacity, customer and supplier consolidation, and changes in competitors’ pricing for products;

•ability to execute on strategic pricing initiatives;

•financial conditions of customers and suppliers;

•ability to maintain or increase productivity levels, contain or reduce costs, and maintain positive price/cost relationships;

•ability to negotiate or retain contracts with customers, including in segments with concentration of sales volume;

•inventory management strategies of customers;

•timing of introduction of new products or product innovations by customers;

•collection of receivables from customers;

•ability to improve margins and leverage cash flows and financial position;

•ability to manage the mix of business to take advantage of growing markets while reducing cyclical effects of some of the Company’s existing businesses on operating results;

•ability to maintain innovative technological market leadership and a reputation for quality;

•ability to attract and retain talented and qualified employees, managers and executives;

•ability to profitably maintain and grow existing domestic and international business and market share;

•ability to expand geographically and win profitable new business;

•ability to identify and successfully close suitable acquisitions at the levels needed to meet growth targets;

•ability to successfully integrate newly acquired businesses, including Metal Packaging, into the Company’s operations and realize synergies and other anticipated benefits within the expected time period, or at all;

•the costs, timing and results of restructuring activities;

•availability of credit to us, our customers and suppliers in needed amounts and on reasonable terms;

•effects of our indebtedness on our cash flow and business activities;

•fluctuations in interest rates and our borrowing costs;

•fluctuations in obligations and earnings of pension and postretirement benefit plans;

•accuracy of assumptions underlying projections of benefit plan obligations and payments, valuation of plan assets, and projections of long-term rates of return;

•timing of funding pension and postretirement benefit plan obligations;

•cost of employee and retiree medical, health and life insurance benefits;

•resolution of income tax contingencies;

•foreign currency exchange rate fluctuations, interest rate and commodity price risk and the effectiveness of related hedges or other derivatives;

•changes in U.S. and foreign tariffs, tax rates, tax laws, regulations and interpretations thereof;

•the adoption of new, or changes in, accounting standards or interpretations;

•challenges and assessments from tax authorities resulting from differences in interpretation of tax laws, including income, sales and use, property, value added, employment, and other taxes;

40

SONOCO PRODUCTS COMPANY

•accuracy in valuation of deferred tax assets;

•accuracy of assumptions underlying projections related to goodwill impairment testing, and accuracy of management’s assessment of goodwill impairment;

•accuracy of assumptions underlying fair value measurements, accuracy of management’s assessments of fair value and fluctuations in fair value;

•ability to maintain effective internal controls over financial reporting;

•liability for and costs of resolution of litigation, regulatory actions, or other legal proceedings;

•liability for and anticipated costs of environmental remediation actions;

•effects of environmental laws and regulations;

•operational disruptions at our major facilities;

•failure or disruptions in our information technologies;

•failure of third party transportation providers to deliver our products to our customers or to deliver raw materials to us;

•substantially lower than normal crop yields;

•loss of consumer or investor confidence;

•ability to protect our intellectual property rights;

•changes in laws and regulations relating to packaging for food products and foods packaged therein, other actions and public concerns about products packaged in our containers, or chemicals or substances used in raw materials or in the manufacturing process;

•changing consumer attitudes toward plastic packaging;

•ability to meet sustainability targets and challenges in implementation;

•changing climate, climate change regulations and greenhouse gas effects;

•ability to meet commitments to reduce greenhouse gas emissions;

•actions of domestic or foreign government agencies and changes in laws and regulations affecting the Company and increased costs of compliance;

•international, national and local economic and market conditions and levels of unemployment;

•economic disruptions resulting from war and other geopolitical tensions, including the ongoing Russia-Ukraine conflict and the Company's withdrawal from Russian operations, terrorist activities and natural disasters; and

•accelerating inflation and activities and operations in highly inflationary economies.

More information about the risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed or forecasted in forward-looking statements is provided in the Company's Annual Report on Form 10-K under Item 1A-“Risk Factors” and throughout other sections of that report and in other reports filed with the Securities and Exchange Commission. In light of these various risks, uncertainties and assumptions, the forward-looking events discussed in this report might not occur.

The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. You are, however, advised to review any further disclosures we make on related subjects, and about new or additional risks, uncertainties and assumptions, in our future filings with the Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K.

41

SONOCO PRODUCTS COMPANY

COMPANY OVERVIEW

Sonoco is a leading provider of consumer, industrial, healthcare and protective packaging, with approximately 300 locations in 31 countries.

Sonoco’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other. Prior to the divestiture of the Company’s U.S. display and packaging business on April 4, 2021, this business was included in All Other.

Sonoco competes in multiple product categories, with the majority of the Company’s revenues arising from products and services sold to consumer and industrial products companies for use in the packaging of their products for sale or shipment. The Company also manufactures uncoated recycled paperboard for both internal use and open market sale. Each of the Company’s operating units has its own sales staff and maintains direct sales relationships with its customers.

On a consolidated basis, by the end of 2021 the impacts of the COVID-19 pandemic on the Company had largely dissipated. For most of the Company’s business units, sales demand in 2022 has equaled or exceeded pre-pandemic levels. The Company has incurred, and expects to continue to incur for the foreseeable future, localized temporary disruptions in its supply chain and customer demand due to localized resurgences of COVID-19. However, absent a future widespread resurgence, or the emergence of a more severe COVID-19 variant of concern, the Company does not expect such impacts to have a material negative effect on the Company’s operations or financial results.

Third Quarter 2022 Compared with Third Quarter 2021

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

Measures calculated and presented in accordance with generally accepted accounting principles are referred to as GAAP financial measures. The following tables reconcile the Company’s non-GAAP financial measures to their most directly comparable GAAP financial measures in the Company’s Condensed Consolidated Statements of Income for each of the periods presented. These non-GAAP financial measures (referred to as “Base”) are the GAAP measures adjusted to exclude amounts (dependent upon the applicable period), including the associated tax effects, relating to:

•restructuring initiatives;

•asset impairment charges;

•acquisition/divestiture-related costs;

•gains or losses from the divestiture of businesses;

•losses from the early extinguishment of debt;

•non-operating pension costs;

•amortization expense on acquisition intangibles;

•changes in last-in, first-out (“LIFO”) inventory reserves;

•certain income tax events and adjustments; and

•other items, if any.

The Company's management believes the exclusion of these items improves the period-to-period comparability and analysis of the underlying financial performance of the business.  More information about the Company's use of non-GAAP financial measures is provided in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 under Item 7 - “Management's Discussion and Analysis of Financial Condition and Results of Operations,” under the heading “Use of Non-GAAP Financial Measures.” As previously disclosed, effective January 1, 2022, the Company modified its definition of base results to include adjustments for amortization-related expense on acquisition intangibles. Accordingly, base results for 2021 have been revised to conform with the current presentation.

These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Sonoco management does not, nor does it suggest that investors should, consider these non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Material limitations associated with the use of such measures include that they do not reflect all costs included in operating expenses and may not be comparable with similarly named financial measures of other companies. Furthermore, these non-GAAP financial measures are based on subjective determinations of management regarding the nature and classification of events and circumstances.

42

SONOCO PRODUCTS COMPANY

Sonoco presents these non-GAAP financial measures to provide users with information to evaluate Sonoco’s operating results in a manner similar to how management evaluates business performance. To compensate for any limitations in such non-GAAP financial measures, management believes that it is useful in understanding and analyzing the results of the business to review both GAAP information and the related non-GAAP financial measures.

Restructuring/asset impairment charges are a recurring item as the Company’s restructuring programs usually require several years to fully implement and the Company is continually seeking to take actions that could enhance its efficiency. Although recurring, these charges are subject to significant fluctuations from period to period due to the varying levels of restructuring activity and the inherent imprecision in the estimates used to recognize the impairment of assets and the wide variety of costs and taxes associated with severance and termination benefits in the countries in which the restructuring actions occur.

	For the three-month period ended October 2, 2022
Dollars in thousands, except per share data	GAAP		Restructuring/Asset Impairments		Amortization of Acquisition Intangibles		Acquisition/Divestiture Related		Other Adjustments(1)		Base
Operating profit	$	181,942	$	20,652	$	20,690	$	2,022	$	(215)	$	225,091
Non-operating pension costs	1,249		—		—		—		(1,249)		—
Interest expense, net	25,566		—		—		—		—		25,566
Income before income taxes	155,127		20,652		20,690		2,022		1,034		199,525
Provision for income taxes	36,824		4,862		4,938		765		(1,297)		46,092
Income before equity in earnings of affiliates	118,303		15,790		15,752		1,257		2,331		153,433
Equity in earnings of affiliates, net of tax	4,199		—		—		—		—		4,199
Net income	122,502		15,790		15,752		1,257		2,331		157,632
Net (income)/loss attributable to noncontrolling interests	(273)		186		—		—		—		(87)
Net income attributable to Sonoco	122,229		15,976		15,752		1,257		2,331		157,545
Per diluted common share*	$	1.24	$	0.16	$	0.16	$	0.01	$	0.02	$	1.60
*Due to rounding individual items may not sum across

(1) See table in “Results of Operations – Overview” below for details related to the after-tax impact of major components.

	For the three-month period ended October 3, 2021
Dollars in thousands, except per share data	GAAP		Restructuring/Asset Impairments		Amortization of Acquisition Intangibles(1)(2)		Acquisition/Divestiture Related		Other Adjustments(1)		Base
Operating profit	$	126,512	$	3,488	$	12,257	$	1,015	$	(8,585)	$	134,687
Non-operating pension costs	525		—		—		—		(525)		—
Interest expense, net	14,219		—		—		—		—		14,219
Income before income taxes	$	111,768	$	3,488	$	12,257	$	1,015	$	(8,060)	$	120,468
Provision for income taxes	2,564		312		3,036		190		16,493		22,595
Income before equity in earnings of affiliates	$	109,204	$	3,176	$	9,221	$	825	$	(24,553)	$	97,873
Equity in earnings of affiliates, net of tax	2,351		—		—		—		—		2,351
Net income	$	111,555	$	3,176	$	9,221	$	825	$	(24,553)	$	100,224
Net loss attributable to noncontrolling interests	(415)		—		—		—		—		(415)
Net income attributable to Sonoco	$	111,140	$	3,176	$	9,221	$	825	$	(24,553)	$	99,809
Diluted weighted average common shares outstanding:	99,425								—		99,425
Per diluted common share*	$	1.12	$	0.03	$	0.09	$	0.01	$	(0.25)	$	1.00
*Due to rounding individual items may not sum across

(1) See table in “Results of Operations – Overview” below for details related to the after-tax impact of major components.

(2) Effective January 1, 2022, the Company changed its measure of base operating profit to exclude amortization of acquisition intangibles. Accordingly, base operating profit for 2021 has been revised to conform with the current presentation.

43

SONOCO PRODUCTS COMPANY

RESULTS OF OPERATIONS

The following discussion provides a review of results for the three-month period ended October 2, 2022 versus the three-month period ended October 3, 2021.

OVERVIEW

Net sales for the third quarter of 2022 increased 33.6 percent to $1.89 billion, compared with $1.42 billion in the same period last year. This improvement reflects strategic pricing performance and sales added from the January 26, 2022 acquisition of Ball Metalpack Holding, LLC, renamed Sonoco Metal Packaging (“Metal Packaging”).

Net income attributable to Sonoco for the third quarter of 2022 increased to $122.2 million, or $1.24 per diluted share, compared to $111.1 million, or $1.12 per diluted share, for the same period of 2021. Net income in the current period benefited primarily from the Company’s strategic pricing initiatives, increases from acquisitions and operational improvements. These benefits were partially offset by higher net interest expense in 2022 related to higher borrowings resulting from the funding of the Metal Packaging acquisition. Additionally, net income in the current quarter includes net after-tax, non-base charges totaling $35.3 million, while results for the third quarter of 2021 included net after-tax, non-base income totaling $11.3 million. These non-base items consisted of the following, after tax:

	Three Months Ended
($ in millions)	October 2, 2022		October 3, 2021
Impairment and restructuring related charges	$	16.0	$	3.2
Amortization of acquired intangibles	15.8		9.2
Acquisition and divestiture related costs	1.3		0.8
Net loss/(gain) on derivatives	1.1		(2.2)
Turkey hyperinflationary accounting impact	0.8		—
Changes in LIFO inventory reserve	(0.3)		—
Insurance settlement gains	(2.0)		(1.6)
Gain on divestiture of businesses	—		(2.2)
Other non-operating pension costs	0.9		0.3
Net recognized benefit on 2017 amended U.S. income tax return	—		(30.0)
Other non-base income tax charges	1.7		12.1
All other non-base items	—		(0.9)
Total non-base charges/(income), after tax	$	35.3	$	(11.3)

Adjusted for these items, base net income attributable to Sonoco ("base earnings") for the third quarter of 2022 increased 57.8 percent to $157.5 million, or $1.60 per diluted share, from $99.8 million, or $1.00 per diluted share, in 2021, and third-quarter base operating profit increased 67.1 percent to $225.1 million. As noted above, these improvements reflect strong strategic pricing performance and the accretive effects of the January 2022 acquisition of the Metal Packaging business. These year-over-year gains were partially offset by increased compensation and benefit costs.

OPERATING REVENUE

Net sales for the third quarter of 2022 increased $475 million, or 33.6 percent, from the prior-year quarter.

The components of the sales change were:

	($ in millions)
Volume/mix	$	(52)
Selling prices	250
Acquisitions and divestitures, net	334
Foreign currency translation and other, net	(57)
Total sales increase	$	475

44

SONOCO PRODUCTS COMPANY

Selling price gains were driven by a combination of passing through higher costs and benefits realized by strategic pricing initiatives aimed at capturing more of the value provided by the Company's products. Net sales added by acquisitions and divestitures were driven by the Metal Packaging acquisition.

COSTS AND EXPENSES

Cost of goods sold increased $365.6 million, or 31.6 percent, in the third quarter of 2022 compared with the same period last year. The increase was driven primarily by inflation and incremental costs added by the acquisition of Metal Packaging. These year-over-year increases were partially offset by the translation impact of an overall stronger dollar in the current year. Gross profit was $367.1 million for the three-month period ended October 2, 2022, which was $109.4 million higher than the prior-year period. Additionally, gross profit as a percent of sales increased to 19.4 percent from 18.2 percent in the prior-year quarter as overall sales price increases more than offset higher material and other operating costs largely due to the Company's strategic pricing initiatives.

GAAP selling, general and administrative (“SG&A”) expenses for the quarter increased $34.0 million, or 26.0 percent, year over year. This increase reflects higher amortization, acquisition, and normal operating SG&A expenses stemming from the Metal Packaging acquisition; higher employee compensation and benefit costs; and gains on derivatives in the prior year.

Restructuring/Asset impairment charges totaled $20.7 million in the third quarter of 2022 compared with $3.5 million in the same period last year. Additional information regarding restructuring and asset impairment charges is provided in Note 5 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

GAAP net interest expense for the third quarter of 2022 increased to $25.6 million, compared with $14.2 million during the third quarter of 2021, due primarily to higher average debt balances resulting from the financing transactions used to fund the January 26, 2022 acquisition of Metal Packaging.

The 2022 third-quarter effective tax rates on GAAP and base earnings were 23.7 percent and 23.1 percent, respectively, compared with 2.3 percent and 18.8 percent, respectively, in the prior year’s quarter. The increase in the GAAP effective tax rate was primarily due to the absence of a third-quarter 2021 benefit received in association with the amendment of the Company’s 2017 tax return to report increased utilization of its foreign tax credits. The higher base tax rate is largely attributable to the 2022 absence of a release of uncertain tax position reserves upon expiration of the statute of limitations that occurred in the third-quarter of 2021.

REPORTABLE SEGMENTS

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 following table summarizes net sales attributable to each of the Company’s segments and All Other for the third quarters of 2022 and 2021 ($ in thousands):

	Three Months Ended
	October 2, 2022		October 3, 2021		%  Change
Net sales:
Consumer Packaging	$	1,030,549	$	598,969	72.1	%
Industrial Paper Packaging	661,452		635,230		4.1	%
All Other	198,215		180,994		9.5	%
Net sales	$	1,890,216	$	1,415,193	33.6	%

45

SONOCO PRODUCTS COMPANY

The following table summarizes operating profit attributable to each of the Company’s segments during the third quarters of 2022 and 2021 ($ in thousands):

	Three Months Ended
	October 2, 2022		October 3, 2021		% Change
Operating profit:
Segment operating profit:
Consumer Packaging	$	127,859	$	66,341	92.7	%
Industrial Paper Packaging	81,859		55,451		47.6	%
All Other	15,373		12,895		19.2	%
Total segment operating profit	225,091		134,687		67.1	%
Restructuring/Asset impairment charges	(20,652)		(3,488)
Amortization of acquisition intangibles	(20,690)		(12,257)
Other non-base charges, net	(1,807)		7,570
Operating profit	$	181,942	$	126,512	43.8	%

Segment results viewed by Company management to evaluate segment performance do not include restructuring charges and income, asset impairment charges, acquisition and divestiture-related costs, or certain other items, if any, the exclusion of which the Company believes improves the comparability and analysis of the ongoing operating performance of the business. Accordingly, the term “segment operating profit” is a non-GAAP measure and is defined as the segment’s portion of “operating profit” excluding those items. All other general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and All Other. Effective January 1, 2022, the Company changed its measure of segment operating profit to exclude amortization of acquisition intangibles. Accordingly, the prior year's segment operating profit has been revised to conform with the current presentation for comparability.

The following table summarizes restructuring/asset impairment charges/(income) attributable to each of the Company’s segments during the third quarter of 2022 and 2021 ($ in thousands):

	Three Months Ended
	October 2, 2022		October 3, 2021
Restructuring/Asset impairment charges/(income):
Consumer Packaging	$	4,350	$	2,734
Industrial Paper Packaging	7,674		(1,888)
All Other	18		555
Corporate	8,610		2,087
Restructuring/Asset impairment charges	$	20,652	$	3,488

Consumer Packaging

The Consumer Packaging segment primarily serves prepared and fresh food markets along with other packaging for consumer products. The products produced and sold within this segment are generally used to package a variety of consumer products and consist primarily of round and shaped rigid paper containers, steel tinplate cans and aerosol containers; thermoformed plastic trays and containers; and flexible packaging.

Segment sales increased approximately 72 percent compared to the prior year’s quarter due primarily to the acquisition of Metal Packaging and strong strategic pricing performance. Positive volume/mix growth in the segment was driven by global rigid paper containers, where gains were seen in North America, Asia, and Latin America, and in the flexible packaging business. These gains were partially offset by the negative impacts of foreign exchange due to the stronger U.S. dollar.

Segment operating profit increased 93 percent with the main driver being the Metal Packaging acquisition, along with favorable price/cost, including the benefits of strategic pricing actions supported by positive volume/mix and productivity. As a result, segment operating margin improved to 12 percent in the quarter from 11 percent in the 2021 period.

46

SONOCO PRODUCTS COMPANY

Industrial Paper Packaging    

The Industrial Paper Packaging segment serves a variety of customers who use its products to package their goods for transport, storage or sale or to produce similar fiber-based products. The primary products produced and sold within this segment include fiber-based tubes, cones, and cores; fiber-based protective packaging and components; reels; and recycled paperboard.

Segment sales increased 4 percent from the prior year's quarter due to strong strategic pricing performance, partially offset by the negative impacts of foreign exchange and lower volume/mix globally in both paper and converted products.

Segment operating profit increased 48 percent from the prior year’s quarter, driven by positive price/cost, including the benefits of strategic pricing actions, which was somewhat offset by lower volume/mix. As a result, segment operating profit margin improved to 12 percent in the current year's quarter from 9 percent in the prior year.

During the third quarter of 2022, as part of Project Horizon, the #10 paper machine on the Company's Hartsville campus was shut down to allow for its conversion from a corrugated medium machine to an uncoated recycled paperboard (“URB”) machine. This planned shutdown resulted in an expected loss of volume and lower absorption of fixed costs. Late in the third quarter, the #10 machine began production of URB. As previously disclosed, the new URB machine was designed with the goal of being one of the largest and lowest-cost producers of URB in the world, with a targeted annual production capacity of 180,000 tons and capable of producing a wide range of high-value paper grades to service the Company's Industrial Paper Packaging businesses and external trade customers. Project Horizon is expected to drive significant annualized cost savings as production ramps through 2023 and beyond.

All Other

Businesses grouped as All Other include healthcare packaging, protective and retail security packaging and industrial plastic products. These businesses include the following products and services: thermoformed rigid plastic trays and devices; custom-engineered molded foam protective packaging and components; temperature-assured packaging; injection molded and extruded containers, spools and parts; retail security packaging, including printed backer cards, thermoformed blisters and heat-sealing equipment; and paper amenities. Prior to the divestiture of the Company’s U.S. display and packaging business on April 4, 2021, this business, which included point-of-purchase displays, fulfillment operations, and contract packaging, was reported in All Other.

Sales for All Other improved 10 percent from the prior year’s quarter due primarily to positive strategic pricing performance. Volume/mix for the businesses in All Other was essentially flat as growth in molded foam and temperature-assured packaging was offset by declines in the plastics businesses.

All Other operating profit improved 19.2 percent from the prior year's quarter due primarily to positive strategic pricing performance. Operating margin increased slightly to 7.8 percent in the quarter from 7.1 percent in 2021.

Nine Months Ended October 2, 2022 Compared with Nine Months Ended October 3, 2021

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

The following tables reconcile the Company’s non-GAAP financial measures to their most directly comparable GAAP financial measures in the Company’s Condensed Consolidated Statements of Income for each of the periods presented.

47

SONOCO PRODUCTS COMPANY

	For the nine-month period ended October 2, 2022
Dollars in thousands, except per share data	GAAP		Restructuring/Asset Impairments		Amortization of Acquisition Intangibles		Acquisition/Divestiture Related		Other Adjustments(1)		Base
Operating profit	$	548,480	$	43,357	$	60,361	$	62,655	$	21,183	$	736,036
Non-operating pension costs	4,251		—		—		—		(4,251)		—
Interest expense, net	67,792		—		—		—		136		67,928
Income before income taxes	$	476,437	$	43,357	$	60,361	$	62,655	$	25,298	$	668,108
Provision for income taxes	116,712		7,339		14,666		15,529		9,607		163,853
Income before equity in earnings of affiliates	$	359,725	$	36,018	$	45,695	$	47,126	$	15,691	$	504,255
Equity in earnings of affiliates, net of tax	10,151		—		—		—		—		10,151
Net income	$	369,876	$	36,018	$	45,695	$	47,126	$	15,691	$	514,406
Net (income) attributable to noncontrolling interests	(642)		286		—		—		—		(356)
Net income attributable to Sonoco	$	369,234	$	36,304	$	45,695	$	47,126	$	15,691	$	514,050
Per diluted common share*	$	3.74	$	0.37	$	0.46	$	0.48	$	0.16	$	5.21
*Due to rounding individual items may not sum across

(1) See table in “Results of Operations – Overview” below for details related to the after-tax impact of major components.

	For the nine-month period ended October 3, 2021
Dollars in thousands, except per share data	GAAP		Restructuring/Asset Impairments		Amortization of Acquisition Intangibles(1)(2)		Acquisition/Divestiture Related		Other Adjustments(1)		Base
Operating profit	$	382,112	$	8,889	$	37,117	$	12,503	$	(12,797)	$	427,824
Non-operating pension costs	562,818		—		—		—		(562,818)		—
Interest expense, net	46,744		—		—		—		2,165		48,909
Loss from the early extinguishment of debt	20,184		—		—		—		(20,184)		—
Income before income taxes	$	(247,634)	$	8,889	$	37,117	$	12,503	$	568,040	$	378,915
Provision for income taxes	(91,542)		2,653		9,194		2,984		166,271		89,560
Income before equity in earnings of affiliates	$	(156,092)	$	6,236	$	27,923	$	9,519	$	401,769	$	289,355
Equity in earnings of affiliates, net of tax	5,701		—		—		—		—		5,701
Net (loss)/income	$	(150,391)	$	6,236	$	27,923	$	9,519	$	401,769	$	295,056
Net (income) attributable to noncontrolling interests	(243)		—		—		—		—		(243)
Net (loss)/income attributable to Sonoco	$	(150,634)	$	6,236	$	27,923	$	9,519	$	401,769	$	294,813
Diluted Weighted average common shares outstanding(3):	100,039								468		100,507
Per diluted common share*	$	(1.51)	$	0.06	$	0.28	$	0.09	$	4.00	$	2.93
*Due to rounding individual items may not sum across

(1) See table in “Results of Operations – Overview” below for details related to the after-tax impact of major components.

(2) Effective January 1, 2022, the Company changed its measure of base operating profit to exclude amortization of acquisition intangibles. Accordingly, base operating profit for 2021 has been revised to conform with the current presentation.

(3) Due to the magnitude of certain expenses considered by management to be non-base and included in Other Adjustments, the Company reported a year-to-date GAAP Net loss attributable to Sonoco. In instances where a company has a net loss, GAAP requires that the company shall not consider any unexercised share awards or other like instruments dilutive for purposes of calculating weighted average shares outstanding. Accordingly, the Company did not consider any unexercised share awards dilutive in calculating weighted average shares outstanding for GAAP purposes in the table above, which resulted in basic weighted average shares outstanding and diluted weighted average common shares outstanding being the same. However, the Company also presents base net income attributable to Sonoco, which excludes the net non-base items. In order to maintain consistency in the computation of base diluted earnings per share, unexercised stock instruments that meet GAAP requirements for dilution were considered dilutive to the same extent they would be if GAAP net income attributable to Sonoco were equal to base net income attributable to Sonoco.

48

SONOCO PRODUCTS COMPANY

RESULTS OF OPERATIONS

The following discussion provides a review of results for the nine-month period ended October 2, 2022 compared with the nine-month period ended October 3, 2021.

OVERVIEW

Net sales for the first nine months of 2022 increased 34.3 percent to $5.6 billion, compared with $4.2 billion in the same period last year. This improvement reflects increases from strong pricing performance and sales added from the January 26, 2022 acquisition of Metal Packaging. These benefits were partially offset by the negative impact of foreign currency translation and the April 2021 U.S. display and packaging divestiture.

Net income/(loss) attributable to Sonoco for the first nine months of 2022 increased to $369.2 million, or $3.74 per diluted share, compared to $(150.6) million, or $(1.51) per diluted share, reported for the same period of 2021. These GAAP results include net after-tax, non-base charges totaling $144.8 million and $445.4 million in the first nine months of 2022 and 2021, respectively. The major components of these non-base amounts are shown below:

	Nine Months Ended
($ in millions)	October 2, 2022		October 3, 2021
Other net restructuring and asset impairment charges	$	27.1	$	6.2
Loss from exiting Russia	9.2		—
Amortization of acquisition intangibles	45.7		27.9
Amortization of fair value adjustments to Metal Packaging inventory	24.7		—
Acquisition and divestiture-related costs	22.4		9.5
Changes in LIFO inventory reserve	18.7		—
Turkey hyperinflationary accounting impact	0.8		—
Net gain on other derivatives	(1.7)		(2.2)
Insurance settlement gains	(2.1)		(4.4)
Loss from the early extinguishment of debt	—		15.0
Loss on divestiture of businesses	—		1.2
Refund of foreign VAT and applicable interest	—		(3.1)
Euro derivative gain related to euro loan repayment	—		(3.3)
Other non-operating pension costs	3.1		11.8
Pension settlement charges (Inactive Plan)	—		406.5
Other non-base income tax (gains)/charges	(3.0)		11.9
Net recognized benefit on 2017 amended U.S. income tax return	—		(30.0)
All other non-base gains	(0.1)		(1.6)
Total non-base charges, after tax	$	144.8	$	445.4

Adjusted for these items, base earnings for the nine-month period ending October 2, 2022 increased 74 percent to $514.1 million, or $5.21 per diluted share, from $294.8 million, or $2.93 per diluted share, in the same period in 2021.

The increase in base earnings of $219.2 million is largely attributable to strong pricing performance, earnings from the Metal Packaging acquisition, and productivity improvements. These gains were partially offset by the 2021 divestiture of the Company’s U.S. display and packaging business, higher interest expense related to the financing of the Metal Packaging acquisition, and increased compensation and benefit costs.

49

SONOCO PRODUCTS COMPANY

OPERATING REVENUE

Net sales for the first nine months of 2022 increased $1.4 billion from the same period in 2021.

The components of the sales change were:

	($ in millions)
Volume/mix	$	(39)
Selling prices	823
Acquisitions and divestitures, net	765
Foreign currency translation and other, net	(126)
Total sales increase	$	1,423

Selling price gains were driven by a combination of passing through higher costs and benefits realized by strategic pricing initiatives aimed at capturing more of the value provided by the Company’s products. Net sales added by acquisitions and divestitures were driven by the January 26, 2022 acquisition of Metal Packaging.

COSTS AND EXPENSES

Cost of goods sold increased $1,095.9 million, or 32.7 percent, while the Company’s gross profit margin percentage increased to 20.2 percent for the first nine months of 2022, compared to 19.2 percent in the prior-year period. The increase was driven primarily by inflation, which also had the impact of increasing the Company’s LIFO inventory reserves, and costs added by the acquisition of Metal Packaging, including expensing the acquisition-date fair value adjustments to finished goods inventory. Gross profit margin improved due to positive price/cost relationship and productivity improvements.

GAAP SG&A costs for the first nine months of 2022 increased $129.3 million, or 31.9 percent, year over year. The year-over-year increase was largely driven by higher acquisition and divestiture transaction costs, increased amortization of acquisition intangibles, increased compensation and other benefit costs, and absence of non-recurring gains from 2021 life insurance gains and a 2021 foreign VAT refund.

Net restructuring costs and asset impairment charges totaled $43.4 million in the first nine months of 2022, compared with $8.9 million of net charges in the same period last year. The year-over-year increase was driven by higher year-over-year restructuring activity in the current year, including a $9.2 million impairment charge resulting from the Company’s exit from its Russian operations. Prior year restructuring costs were offset by gains recorded in 2021 for the sale of buildings at previously closed facilities. Additional information regarding restructuring and asset impairment charges is provided in Note 5 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Non-operating pension costs decreased $558.6 million year over year due to the settlement in the second quarter of 2021 of the Inactive Plan and the resulting $547.3 million settlement charge. Additional information regarding pension settlement charges is provided in Note 11 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Additionally, in the second quarter of 2021 the Company recognized a loss on the early extinguishment of debt totaling $20.2 million. This loss was pursuant to a tender offer through which the Company retired a portion of its 5.750% notes due November 2040. See Note 8 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information.

GAAP net interest expense for the first nine months of 2022 increased to $67.8 million, compared with $46.7 million during the first nine months of 2021. The increase was primarily due to higher debt balances related to the financing transactions used to fund the Metal Packaging acquisition in January 2022.

The effective tax rates on GAAP and Base earnings in the first nine months of 2022 were 24.5 percent and 24.5 percent, respectively, compared with 37.0 percent and 23.6 percent for the GAAP loss and Base earnings, respectively, in the prior-year period. The decrease in the 2022 GAAP rate was largely driven by the absence of the 2021 pension settlement charge and the 2022 release of valuation allowances on the Company’s state net operating loss carryforwards. The base rate was higher than in the prior year due largely to the 2022 absence of a release of uncertain tax position reserves upon expiration of the statute of limitations that occurred in 2021.

50

SONOCO PRODUCTS COMPANY

REPORTABLE SEGMENTS

The following table summarizes net sales attributable to each of the Company’s segments during the first nine months of 2022 and 2021 ($ in thousands): 

	Nine-Month Period Ended
	October 2, 2022		October 3, 2021		% Change
Net sales:
Consumer Packaging	$	2,888,630	$	1,779,525	62.3	%
Industrial Paper Packaging	2,087,981		1,809,159		15.4	%
All Other	597,919		562,567		6.3	%
Net sales	$	5,574,530	$	4,151,251	34.3	%

The following table summarizes operating profit attributable to each of the Company’s segments during the first nine months of 2022 and 2021 ($ in thousands):

	Nine-Month Period Ended
	October 2, 2022		October 3, 2021		% Change
Operating profit:
Segment operating profit:
Consumer Packaging	$	440,889	$	212,997	107.0	%
Industrial Paper Packaging	248,721		167,568		48.4	%
All Other	46,426		47,259		(1.8)	%
Total segment operating profit	736,036		427,824		72.0	%
Restructuring/Asset impairment charges	(43,357)		(8,889)
Amortization of acquisition intangibles	(60,361)		(37,117)
Other non-base charges, net	(83,838)		294
Operating profit	$	548,480	$	382,112	43.5	%

Segment results viewed by Company management to evaluate segment performance do not include restructuring charges and income, asset impairment charges, acquisition and divestiture-related charges, or certain other items, if any, the exclusion of which the Company believes improves the comparability and analysis of the ongoing operating performance of the business. Accordingly, the term “segment operating profit” is a non-GAAP measure and is defined as the segment’s portion of “operating profit” excluding those items. All other general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and All Other. Effective January 1, 2022, the Company changed its measure of segment operating profit to exclude amortization of acquisition intangibles. Accordingly, the prior year's segment operating profit has been revised to conform with the current presentation for comparability.

The following table summarizes restructuring/asset impairment charges/(income) attributable to each of the Company’s segments during the first nine months of 2022 and 2021 ($ in thousands):

	Nine-Month Period Ended
	October 2, 2022		October 3, 2021
Restructuring/Asset impairment charges/(income):
Consumer Packaging	$	9,459	$	6,150
Industrial Paper Packaging	19,194		(4,827)
All Other	(399)		5,474
Corporate	15,103		2,092
Restructuring/Asset impairment charges	$	43,357	$	8,889

Consumer Packaging

Segment sales increased 62.3 percent year to date compared to the prior-year period driven by increased selling prices, largely implemented to recover increased raw material and other operating costs, sales added by the acquisition of Metal Packaging, and increased volume.

51

SONOCO PRODUCTS COMPANY

Year-to-date segment operating profit increased 107.0 percent driven by the Metal Packaging acquisition along with favorable price/cost, including the benefits of strategic pricing initiatives, and productivity gains. As a result, segment operating profit margin increased 329 basis points to 15.3 percent.

Industrial Paper Packaging

Segment sales increased 15.4 percent year to date versus the prior-year period due to increased selling prices, largely implemented to recover increased raw material and other operating costs, partially offset by a negative volume/mix impact and a negative impact from foreign currency translation.

Segment operating profit increased 48.4 percent from the prior-year period driven by price/cost gains, including the benefits of strategic pricing initiatives. These gains were partially offset by somewhat lower volume and a negative impact from foreign exchange. As a result, segment operating margins were up 265 basis points to 11.9 percent.

All Other

Sales for All Other increased 6.3 percent year to date due primarily to increased selling prices, which were implemented to recover increased costs, and increased volume. These gains were reduced by the impact of the 2021 U.S. display and packaging divestiture. Excluding that divestiture, volume/mix for businesses grouped in All Other improved approximately 2.7 percent, driven primarily by demand improvements in several businesses, most notably molded foam and temperature-assured packaging businesses.

All Other operating profit declined 1.8 percent year to date due to the impact of the divested display and packaging business and a negative impact from foreign exchange. These were partially offset by a positive price/cost relationship. Segment operating margin declined to 7.8 percent year to date from 8.4 percent in 2021.

Financial Position, Liquidity and Capital Resources

Cash generated from operations for the first nine months of 2022 was $322.1 million, compared with $220.1 million in the same period of 2021, an increase of $102.0 million. GAAP net income increased by $520.3 million year over year, as prior year net income included non-cash, after-tax pension settlement charges totaling $406.5 million from the settlement of the Inactive Plan. Cash contributions to the Company's retirement plans were $33.5 million in 2022, significantly lower than the $165.3 million of contributions in the prior year, due to contributions required in 2021 to fully fund the Inactive Plan prior to settlement. Net working capital used $317.0 million of cash in the first nine months of 2022, compared with $74.6 million in the same period of 2021. While current-year inflation was a key driver of that increase, seasonal inventory build in both the Company's plastics food businesses and newly-acquired Metal Packaging business also contributed to the change. The Company continues to actively manage all components of net working capital in an effort to minimize the impact on cash utilization while also supporting the needs of our customers and mitigating stock-out risk.

Changes in accrued expenses and other assets and liabilities provided $15.7 million in the nine-month period ended October 2, 2022 compared with using $8.5 million in the same period last year. The $24.3 million increased provision of operating cash flow was largely driven by higher interest accruals stemming from debt issued in connection with the Metal Packaging acquisition and higher year-over-year management incentive accruals.

Investing activities used $1.6 billion of cash in the first nine months of 2022, compared with $50.9 million in the same period last year. The higher year-over-year use of cash was primarily attributable to acquisition spending, which increased $1.3 billion from the prior year due to the acquisition of Metal Packaging on January 26, 2022. Net capital expenditures during the first nine months of 2022 were $230.7 million, $84.7 million higher than the same period last year. While spending continued for Project Horizon, the modernization of the Company's Hartsville paper mill complex which began in 2020, the year-over-year increase was largely driven by increased strategic investments in growth and productivity projects in the Consumer Packaging segment, including incremental capital spending associated with the acquisition of Metal Packaging. Capital spending for the remainder of 2022 is expected to be approximately $69 million, bringing total 2022 net capital spending to approximately $300 million, compared to $242.9 million in 2021. Proceeds from the sale of businesses added $91.6 million of cash in the first nine months of 2021 as the Company received cash from the sale of its U.S. display and packaging business as well as from the working capital settlement and release of escrow from the 2020 sale of its European contract packaging business. Other net investing proceeds, primarily insurance proceeds received in 2021, were $8.8 million lower year over year.

Financing activities provided $1.3 billion of cash in the nine-month period ended October 2, 2022, while using $563.2 million in the corresponding prior-year period, a year-over-year increase of $1.8 billion. The increase was driven by higher net debt proceeds/repayments, which provided $1.7 billion more cash year over year. Current-year borrowings include $1.2 billion of net proceeds from the issuance of unsecured notes and $300 million of proceeds from the Term

52

SONOCO PRODUCTS COMPANY

Loan Facility, which were used primarily to fund the Metal Packaging acquisition. The Company used cash of $14.5 million to purchase a noncontrolling interest in the first quarter of 2022. Cash used to repurchase the Company's common stock was $4.1 million in the first nine months of 2022 compared to $159.7 million in the same period last year. The higher share repurchases in the prior year were primarily the result of an accelerated share repurchase executed pursuant to an authorization approved by the Company's Board of Directors in April 2021.

Cash and cash equivalents totaled $182.2 million and $171.0 million at October 2, 2022 and December 31, 2021, respectively. Of these totals, approximately $149.6 million and $154.4 million, respectively, were held outside of the United States by the Company’s foreign subsidiaries. Cash held outside of the United States is available to meet local liquidity needs, or for capital expenditures, acquisitions, and other offshore growth opportunities. Reflecting the financing actions described above, the Company believes it has ample domestic liquidity from a combination of cash on hand, expected future operating cash flow, and access to bank and capital markets borrowings. The Company has generally considered its foreign unremitted earnings to be indefinitely invested outside the United States and currently has no plans to repatriate such earnings, other than excess cash balances that can be repatriated at minimal tax cost. Accordingly, the Company is not providing for taxes on these amounts for financial reporting purposes. Computation of the potential deferred tax liability associated with unremitted earnings considered to be indefinitely reinvested is not practicable.

The Company uses a notional pooling arrangement with an international bank to help manage global liquidity requirements. Under this pooling arrangement, the Company and its participating subsidiaries may maintain either a cash deposit or borrowing position through local currency accounts with the bank, so long as the aggregate position of the global pool is a notionally calculated net cash deposit. Because the bank maintains a security interest in the cash deposits, and has the right to offset the cash deposits against the borrowings, the bank provides the Company and its participating subsidiaries favorable interest terms on both.

During the nine-month period ended October 2, 2022, the Company reported a net decrease in cash and cash equivalents of $11.2 million due to currency translation adjustments resulting from a stronger U.S. dollar relative to certain foreign currencies in which cash and cash equivalents were held.

The Company operates a $500 million commercial paper program, supported by a $750 million unsecured revolving credit facility with a syndicate of eight banks. The revolving credit facility is committed through June 2026. If circumstances were to prevent the Company from issuing commercial paper, it has the contractual right to draw funds on the underlying revolving credit facility.

On January 21, 2022, the Company completed a registered public offering of green bonds with an aggregate principal amount of $1.20 billion. The unsecured notes (the "Notes") consisted of the following (dollars in thousands):

	Principal Amount		Issuance Costs and Discounts		Net Proceeds		Interest Rate	Maturity
2025 Notes	$	400,000	$	(2,356)	$	397,644	1.800%	February 1, 2025
2027 Notes	300,000		(2,565)		297,435		2.250%	February 1, 2027
2032 Notes	500,000		(5,220)		494,780		2.850%	February 1, 2032
Total	$	1,200,000	$	(10,141)	$	1,189,859

The Notes are senior unsecured obligations and rank equal in right of payment to the Company’s other senior unsecured debt from time to time outstanding. The indenture governing the Notes contains certain covenants with respect to the Company that, among other things, restrict the entry into additional secured indebtedness, sale and leaseback transactions and certain mergers, consolidations and transfers of all or substantially all of the Company’s assets. The Company used an amount equal to the net proceeds from the Notes to partially fund the Metal Packaging acquisition.

Also on January 21, 2022, the Company entered into a $300 million three-year term loan facility (the "Term Loan Facility") with a syndicate of eight banks. The full $300 million was drawn from this facility on January 26, 2022, and the proceeds used to partially fund the acquisition of Metal Packaging. Interest is assessed at the Secured Overnight Financing Rate ("SOFR") plus a margin based on a pricing grid that uses the Company’s credit ratings. The current SOFR margin is 122.5 basis points. There is no required amortization and repayment can be accelerated at any time without penalty at the Company's discretion. Borrowings under the Term Loan Facility mature on January 27, 2025.

At October 2, 2022, the Company had scheduled debt maturities of approximately $417 million over the next twelve months, including $285 million of outstanding commercial paper balances. Also at October 2, 2022, the Company had $182 million in cash and cash equivalents on hand and $750 million in committed capacity under its revolving credit facility, of which $465 million was available for draw down net of outstanding commercial paper balances. The Company

53

SONOCO PRODUCTS COMPANY

believes these amounts, combined with expected net cash flows generated from operating and investing activities, will provide ample liquidity to cover these debt maturities and other cash flow needs of the Company over the course of the next twelve months.

Certain of the Company’s debt agreements impose restrictions with respect to the maintenance of financial ratios and the disposition of assets. The most restrictive covenants currently require the Company to maintain a minimum level of interest coverage and a minimum level of net worth, as defined in the agreements. As of October 2, 2022, the Company’s interest coverage and net worth were substantially above the minimum levels required under these covenants.

On September 23, 2022, the Company entered into a definitive agreement to acquire S.P. Holding, Skjern A/S ("Skjern"), a privately owned manufacturer of paper based in Skjern, Denmark. The estimated $88 million (purchase price subject to foreign currency fluctuations) all-cash transaction is expected to be completed in the fourth quarter of 2022, subject to customary closing conditions, and is expected to be funded using cash on hand and available borrowing capacity.

The Company continually explores strategic acquisition opportunities which may result in the use of cash. Given the nature of the acquisition process, the timing and amounts of such expenditures are not always predictable. The Company expects that any acquisitions requiring funding in excess of cash on hand would be financed using available borrowing capacity.

The Company anticipates making additional contributions to its other pension and postretirement plans of approximately $4 million during the remainder of 2022, which would result in total contributions to these plans of approximately $38 million in 2022. Future funding requirements beyond the current year will vary depending largely on actual investment returns, future actuarial assumptions, and legislative actions.

Fair Value Measurements, Foreign Exchange Exposure and Risk Management

Certain assets and liabilities are reported in the Company’s financial statements at fair value, the fluctuation of which can impact the Company’s financial position and results of operations. Items reported by the Company at fair value on a recurring basis include derivative contracts and pension and deferred compensation related assets. The valuation of the vast majority of these items is based either on quoted prices in active and accessible markets or on other observable inputs.

As a result of operating globally, the Company is exposed to changes in foreign exchange rates. The exposure is well diversified, as the Company’s operations are located throughout the world, and the Company generally sells in the same countries where it produces with both revenue and costs transacted in the local currency. The Company monitors these exposures and from time to time uses traditional currency swaps and forward exchange contracts to hedge a portion of forecasted transactions that are denominated in foreign currencies, foreign currency assets and liabilities or net investment in foreign subsidiaries. The Company’s foreign operations are exposed to political, geopolitical and cultural risks, but the risks are mitigated by diversification and the relative stability of the countries in which the Company has significant operations.

Due to the highly inflationary economy in Venezuela, the Company considers the U.S. dollar to be the functional currency of its Venezuelan operations and uses the official exchange rate when remeasuring the financial results of those operations. Economic conditions in Venezuela have worsened considerably over the past several years and there is no indication that conditions are likely to improve in the foreseeable future. Further deterioration could result in the recognition of an impairment charge or a deconsolidation of the Company's Venezuelan subsidiary. At October 2, 2022, the carrying value of the Company's net investment in its Venezuelan operations was approximately $2.0 million. In addition, at October 2, 2022, the Company's Accumulated Other Comprehensive Loss included a cumulative translation loss of $3.8 million related to its Venezuelan operations which would need to be reclassified to net income in the event of a complete exit of the business or a deconsolidation of the Venezuelan operations.

During the first quarter of 2022, the three-year cumulative rate of inflation in Turkey rose above 100 percent, the threshold at which it is deemed to be a highly inflationary economy under U.S. GAAP. Accordingly, effective as of the beginning of the second quarter of 2022, the Company considers the U.S. dollar to be the functional currency of its operations in Turkey and has remeasured monetary assets and liabilities denominated in Turkish lira to U.S. dollars with changes recorded through earnings. The impact of applying highly inflationary accounting to Turkey through the end of the third quarter of 2022 was a pretax charge of approximately $2.8 million (approximately $2.1 million after tax). The magnitude of future earnings impacts is uncertain as such impacts are dependent upon unpredictable movements in the Turkish lira relative to the U.S. dollar. In addition to remeasurement-related charges, significant deterioration in the

54

SONOCO PRODUCTS COMPANY

Turkish economy could result in the recognition of future impairment charges. However, the Company believes its exposure is limited to its net investment in Turkey which as of October 2, 2022, approximated $16.3 million.

The Company routinely enters into derivative currency contracts to fix the exchange rate on certain anticipated foreign currency cash flows. The total market value of these instruments was a net unfavorable position of $1.5 million at October 2, 2022 and a net unfavorable position of $0.1 million at December 31, 2021. These contracts qualify as cash flow hedges and have maturities ranging to September 2023. In addition, at October 2, 2022, the Company had various currency contracts outstanding to fix the exchange rate on certain foreign currency assets and liabilities. Although placed as an economic hedge, the Company does not apply hedge accounting to these contracts, the fair value of which was not material at October 2, 2022 and December 31, 2021.

The Company routinely enters into derivative commodity contracts to fix the cost of a portion of anticipated raw materials and energy-related purchases. The total net fair market value of these instruments was a favorable position of $4.3 million and $2.2 million at October 2, 2022 and December 31, 2021, respectively. Natural gas contracts covering approximately 8.8 million MMBTUs were outstanding at October 2, 2022. These contracts, some of which are designated as cash flow hedges, have maturities ranging to December 2024.

Pursuant to the registered public offering of unsecured 2.850% notes with a principal amount of $500.0 million maturing on February 1, 2032, the Company entered into treasury lock derivative instruments with two banks, with a notional principal amount of $150.0 million 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 $5.2 million.

During the first nine months of 2022, the U.S. dollar strengthened against the euro, the British pound, the Canadian dollar, the Brazilian real, and the Mexican peso, the functional currencies in which a majority of the Company's foreign investments are held. The net impact of these changes resulted in a translation loss of $155.2 million being recorded in "Accumulated other comprehensive loss" for the nine-month period ended October 2, 2022.

Restructuring and Impairment

Information regarding restructuring charges and restructuring-related asset impairment charges is provided in Note 5 to the Company’s Condensed Consolidated Financial Statements, included in Part I, Item 1 of this Form 10-Q.

New Accounting Pronouncements

Information regarding new accounting pronouncements is provided in Note 2 to the Company’s Condensed Consolidated Financial Statements, included in Part I, Item 1 of this Form 10-Q.

55

SONOCO PRODUCTS COMPANY

OTHER ITEMS

Critical Accounting Policies and Estimates

Goodwill Impairment Evaluation

The Company assesses its goodwill for impairment annually and from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. If the fair value of a reporting unit exceeds the carrying value of the reporting unit’s assets, including goodwill, there is no impairment. If the carrying value of a reporting unit exceeds the fair value of that reporting unit, an impairment charge to goodwill is recognized for the excess. The Company's reporting units are the same as, or one level below, its operating segments, as determined in accordance with ASC 350.

The Company completed its most recent annual goodwill impairment testing during the third quarter of 2022. For testing purposes, the Company performed an assessment of each reporting unit using either a qualitative evaluation or a quantitative test. The Company’s assessments, whether qualitative or quantitative, incorporate management’s expectations for the future, including forecasted growth rates and/or margin improvements. Therefore, should there be changes in the relevant facts and circumstances and/or expectations, management’s conclusions regarding goodwill impairment may change as well.

In considering the level of uncertainty regarding the potential for goodwill impairment, management has concluded that any such impairment would, in most cases, likely be the result of adverse changes in more than one assumption. Management considers the assumptions used to be its best estimates across a range of possible outcomes based on available evidence at the time of the assessment. Other than in the Plastics - Healthcare and Protexic reporting units, which are discussed below, there is no specific singular event or single change in circumstances management has identified that it believes could reasonably result in a change to expected future results in any of its reporting units sufficient to result in goodwill impairment. In management’s opinion, a change of such magnitude would more likely be the result of changes to some combination of the factors identified above, a general deterioration in competitive position, introduction of a superior technology, significant unexpected changes in customer preferences, an inability to pass through significant raw material cost increases, and other such items as identified in “Item 1A. Risk Factors” on pages 9-19 of the Company's 2021 Annual Report on Form 10-K.

Sensitivity Analysis

In the annual goodwill impairment analysis completed during the third quarter of 2022, projected future cash flows for the Plastics - Healthcare reporting unit were discounted at 9.8% and its estimated fair value was determined to exceed its carrying value by approximately 18.0%. Based on the discounted cash flow model and holding other valuation assumptions constant, the discount rate would have to be increased to 11.0% in order for the estimated fair value of the reporting unit to fall below carrying value. Total goodwill associated with this reporting unit was $60.7 million at October 2, 2022.

The projected future cash flows for the Protexic reporting unit were discounted at 9.5% and its estimated fair value was determined to exceed its carrying value by approximately 18.3%. Based on the discounted cash flow model and holding other valuation assumptions constant, the discount rate would have to be increased to 11.5% in order for the estimated fair value of the reporting unit to fall below carrying value. Total goodwill associated with this reporting unit was $29.1 million at October 2, 2022.

Other Asset Impairments - Russia

The Company recognized asset impairment charges totaling $9.2 million during the nine-month period ended October 2, 2022 as a result of exiting its operations in Russia due to the ongoing Russia-Ukraine conflict. The impairment charges included $3.7 million of cumulative currency translation adjustment losses that were reclassified from accumulated other comprehensive income upon completion of the Company’s exit from Russia on July 1, 2022. The impairment charges are reflected in “Restructuring/Asset impairment charges” in the Company's Condensed Consolidated Statements of Income for the nine-month period ended October 2, 2022. These operations consisted of two small tube and core plants in our Industrial Paper Packaging segment with approximately 70 employees and annual sales in 2021 of approximately $21 million.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Information about the Company’s exposure to market risk is discussed under Part I, Item 2 in this report and was disclosed in its Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the Securities and Exchange Commission on February 28, 2022. There have been no other material quantitative or qualitative changes in market risk exposure since the date of that filing. 

56

SONOCO PRODUCTS COMPANY

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Under the supervision, and with the participation, of our management, including our Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), we conducted an evaluation pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended, (“the Exchange Act”) of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Based on this evaluation, our CEO and CFO concluded that such controls and procedures, as of October 2, 2022, the end of the period covered by this Quarterly Report on Form 10-Q, were effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. For this purpose, disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information that is required to be disclosed in the reports we file or submit under the Exchange Act is accumulated and communicated to the Company’s management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting occurring during the quarter ended October 2, 2022, that materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

Information with respect to legal proceedings and other exposures appears in Part I - Item 3 - “Legal Proceedings” and Part II - Item 8 - “Financial Statements and Supplementary Data” (Note 16 - “Commitments and Contingencies”) in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, and in Part I - Item 1 - “Financial Statements” (Note 16 - “Commitments and Contingencies”) of this report.

Environmental Matters

The Company has been named as a potentially responsible party (“PRP”) at several environmentally contaminated sites not owned by the Company. All of the sites are also the responsibility of other parties. The Company’s liability, if any, is shared with such other parties, but the Company’s share has not been finally determined in most cases. In some cases, the Company has cost-sharing arrangements with other PRPs with respect to a particular site. Such agreements relate to the sharing of legal defense costs or cleanup costs, or both. The Company has assumed, for purposes of estimating amounts to be accrued, that the other parties to such cost-sharing agreements will perform as agreed. It appears that final resolution of some of the sites is years away, and actual costs to be incurred for these environmental matters in future periods is likely to vary from current estimates because of the inherent uncertainties in evaluating environmental exposures. Accordingly, the ultimate cost to the Company with respect to such sites, beyond what has been accrued at October 2, 2022, cannot be determined. As of October 2, 2022 and December 31, 2021, the Company had accrued $7.1 million and $7.4 million, respectively, related to environmental contingencies. The Company periodically reevaluates the assumptions used in determining the appropriate reserves for environmental matters as additional information becomes available and, when warranted, makes appropriate adjustments.

Other legal matters

Additional information regarding legal proceedings is provided in Note 16 to the Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q. 

57

SONOCO PRODUCTS COMPANY

Item 6. Exhibits.

	Exhibit Index
3.1	Restated Articles of Incorporation, as amended April 21, 2022 (incorporated by reference to Exhibit 3.1 to the Registrant's Form 8-K filed April 22, 2022)
3.2	By-Laws of Sonoco Products Company, as amended July 20, 2022 (incorporated by reference to Exhibit 3.2 to the Registrant's Form 8-K, filed July 26, 2022)
15	Letter re: unaudited interim financial information
31	Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and 17 C.F.R. 240.13a-14(a)
32	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and 17 C.F.R. 240.13a-14(b)
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)

58

SONOCO PRODUCTS COMPANY

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

		SONOCO PRODUCTS COMPANY
		(Registrant)
Date:	November 2, 2022	By:	/s/ Robert R. Dillard
			Robert R. Dillard
			Chief Financial Officer
			(principal financial officer)
			/s/ Aditya Gandhi
			Aditya Gandhi
			Chief Accounting Officer
			(principal accounting officer)

59

EX-15

EXHIBIT 15

November 2, 2022

Securities and Exchange Commission

100 F Street, N.E.

Washington, DC 20549

Commissioners:

We are aware that our reportdated November 2, 2022 on our reviewof interim financial information of Sonoco Products Company, which appears in this Quarterly Report on Form 10-Q, isincorporated by reference in the Registration Statementson Form S-3 (File No. 333-266837) and on Forms S-8 (File No. 333-206669, File No. 333-206671, File No. 333-206672, File No. 333-206673, and File No. 333-232936) of Sonoco Products Company.

Very truly yours,

/s/PricewaterhouseCoopers LLP

EX-31

EXHIBIT 31

I, R. Howard Coker, certify that:

1 I have reviewed this quarterly report on Form 10-Q of Sonoco Products Company;

2 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3 Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4 The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5 The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 2, 2022	By:	/s/ R. Howard Coker
			R. Howard Coker
			President and Chief Executive Officer

EXHIBIT 31

I, Robert R. Dillard, certify that:

1 I have reviewed this quarterly report on Form 10-Q of Sonoco Products Company;

2 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3 Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4 The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5 The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 2, 2022	By:	/s/ Robert R. Dillard
			Robert R. Dillard
			Chief Financial Officer

EX-32

EXHIBIT 32

Certification of Principal Executive Officer and Principal Financial Officer

Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the

Sarbanes – Oxley Act of 2002

The undersigned, who are the chief executive officer and the chief financial officer of Sonoco Products Company, each hereby certifies that, to the best of his/her knowledge, the accompanying Form 10-Q for the quarter ended October 2, 2022, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the issuer.

November 2, 2022

/s/ R. Howard Coker

R. Howard Coker

President and Chief Executive Officer

/s/ Robert R. Dillard

Robert R. Dillard

Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Sonoco Products Company (the “Company”) and will be retained by the Company and furnished to the Securities and Exchange Commission upon request. This certification accompanies the Form 10-Q and shall not be treated as having been filed as part of the Form 10-Q.

XML

Cover - shares	9 Months Ended
	Oct. 02, 2022	Oct. 21, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 02, 2022
Document Transition Report	false
Entity File Number	001-11261
Entity Registrant Name	Sonoco Products Company
Entity Incorporation, State or Country Code	SC
Entity Tax Identification Number	57-0248420
Entity Address, Address Line One	1 N. Second St.
Entity Address, City or Town	Hartsville
Entity Address, State or Province	SC
Entity Address, Postal Zip Code	29550
City Area Code	843)
Local Phone Number	383-7000
Title of 12(b) Security	No par value common stock
Trading Symbol	SON
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		97,512,226
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000091767
Current Fiscal Year End Date	--12-31

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands		Oct. 02, 2022		Dec. 31, 2021
Current Assets
Cash and cash equivalents	[1]	$ 182,238		$ 170,978
Trade accounts receivable, net of allowances	[1]	972,874		755,609
Other receivables	[1]	113,206		95,943
Inventories, net:
Finished and in process	[1]	460,872		199,823
Materials and supplies	[1]	555,266		362,290
Prepaid expenses	[1]	126,864		74,034
Total Current Assets		2,411,320	[1]	1,658,677
Property, Plant and Equipment, Net	[1]	1,627,283		1,297,500
Goodwill	[1]	1,641,948		1,324,501
Other Intangible Assets, Net	[1]	709,723		278,143
Deferred Income Taxes	[1]	22,260		25,818
Right of Use Asset-Operating Leases	[1]	296,838		268,390
Other Assets	[1]	266,274		220,206
Total Assets		6,975,646	[1]	5,073,235
Current Liabilities
Payable to suppliers	[1]	888,394		721,312
Accrued expenses and other	[1]	413,547		381,350
Notes payable and current portion of long-term debt	[1]	416,929		411,557
Accrued taxes	[1]	36,602		11,544
Total Current Liabilities		1,755,472	[1]	1,525,763
Long-term Debt, Net of Current Portion	[1]	2,723,101		1,199,106
Noncurrent Operating Lease Liabilities	[1]	253,466		234,167
Pension and Other Postretirement Benefits	[1]	152,118		158,265
Deferred Income Taxes	[1]	115,221		70,482
Other Liabilities	[1]	41,187		35,911
Common stock, no par value
Authorized 300,000 shares 97,512 and 97,370 shares issued and outstanding at October 2, 2022 and December 31, 2021, respectively	[1]	7,175		7,175
Capital in excess of stated value	[1]	134,917		119,690
Accumulated other comprehensive loss	[1]	(512,525)		(359,425)
Retained earnings	[1]	2,299,040		2,070,005
Total Sonoco Shareholders’ Equity		1,928,607	[1]	1,837,445
Noncontrolling Interests	[1]	6,474		12,096
Total Equity	[1]	1,935,081		1,849,541
Total Liabilities and Equity	[1]	$ 6,975,646		$ 5,073,235

[1] 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 (the “United States” or “U.S.”).

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - shares shares in Thousands	Oct. 02, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common stock, shares authorized (in shares)	300,000	300,000
Common stock, shares issued (in shares)	97,512	97,370
Common stock, shares outstanding (in shares)	97,512	97,370

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Income Statement [Abstract]
Net sales	$ 1,890,216	$ 1,415,193	$ 5,574,530	$ 4,151,251
Cost of sales	1,523,070	1,157,462	4,448,818	3,352,966
Gross profit	367,146	257,731	1,125,712	798,285
Selling, general and administrative expenses	164,552	130,580	533,875	404,617
Restructuring/Asset impairment charges	20,652	3,488	43,357	8,889
Gain/(loss) on divestiture of business	0	2,849	0	(2,667)
Operating profit	181,942	126,512	548,480	382,112
Non-operating pension costs	1,249	525	4,251	562,818
Interest expense	26,714	14,753	71,242	50,767
Interest income	1,148	534	3,450	4,023
Loss on early extinguishment of debt	0	0	0	20,184
Income/(Loss) before income taxes	155,127	111,768	476,437	(247,634)
Provision for/(Benefit from) income taxes	36,824	2,564	116,712	(91,542)
Income/(Loss) before equity in earnings of affiliates	118,303	109,204	359,725	(156,092)
Equity in earnings of affiliates, net of tax	4,199	2,351	10,151	5,701
Net income/(loss)	122,502	111,555	369,876	(150,391)
Net (income)/loss attributable to noncontrolling interests	(273)	(415)	(642)	(243)
Net income/(loss) attributable to Sonoco	$ 122,229	$ 111,140	$ 369,234	$ (150,634)
Weighted average common shares outstanding:
Basic (in shares)	98,013	98,955	97,978	100,039
Diluted (in shares)	98,762	99,425	98,669	100,039
Net income/(loss) attributable to Sonoco:
Basic (in usd per share)	$ 1.25	$ 1.12	$ 3.77	$ (1.51)
Diluted (in usd per share)	$ 1.24	$ 1.12	$ 3.74	$ (1.51)

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Statement of Comprehensive Income [Abstract]
Net income/(loss)	$ 122,502	$ 111,555	$ 369,876	$ (150,391)
Other comprehensive (loss)/income:
Foreign currency translation adjustments	(81,972)	(37,741)	(151,580)	(57,686)
Changes in defined benefit plans, net of tax	861	1,693	(876)	429,823
Changes in derivative financial instruments, net of tax	(1,252)	930	(792)	5,370
Other comprehensive (loss)/income	(82,363)	(35,118)	(153,248)	377,507
Comprehensive income:	40,139	76,437	216,628	227,116
Less: Net income attributable to noncontrolling interests	(273)	(415)	(642)	(243)
Less: Other comprehensive loss attributable to noncontrolling interests	515	664	148	425
Comprehensive income attributable to Sonoco	$ 40,381	$ 76,686	$ 216,134	$ 227,298

XML

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, 2020	$ 1,910,528		$ 7,175	$ 314,056	$ (756,842)	$ 2,335,216	$ 10,923
Beginning balance (in shares) at Dec. 31, 2020			100,447
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income/(loss)	72,293					72,297	(4)
Other comprehensive income/(loss):
Translation gain (loss)	(32,541)				(32,021)		(520)
Defined benefit plan adjustment, net of tax	5,385				5,385
Derivative financial instruments, net of tax	958				958
Other comprehensive loss	(26,198)				(25,678)		(520)
Dividends	(45,510)					(45,510)
Issuance of stock awards	364			364
Issuance of stock awards (in shares)			245
Shares repurchased	(5,051)			(5,051)
Shares repurchased (in shares)			(85)
Share-based compensation	6,372			6,372
Ending Balance at Apr. 04, 2021	1,912,798		$ 7,175	315,741	(782,520)	2,362,003	10,399
Ending balance (in shares) at Apr. 04, 2021			100,607
Beginning Balance at Dec. 31, 2020	1,910,528		$ 7,175	314,056	(756,842)	2,335,216	10,923
Beginning balance (in shares) at Dec. 31, 2020			100,447
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income/(loss)	(150,391)
Other comprehensive income/(loss):
Translation gain (loss)	(57,686)
Defined benefit plan adjustment, net of tax	429,823
Derivative financial instruments, net of tax	5,370
Other comprehensive loss					377,932
Ending Balance at Oct. 03, 2021	1,860,732		$ 7,175	172,655	(378,910)	2,049,072	10,740
Ending balance (in shares) at Oct. 03, 2021			98,326
Beginning Balance at Apr. 04, 2021	1,912,798		$ 7,175	315,741	(782,520)	2,362,003	10,399
Beginning balance (in shares) at Apr. 04, 2021			100,607
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income/(loss)	(334,239)					(334,070)	(169)
Other comprehensive income/(loss):
Translation gain (loss)	12,596				11,837		759
Defined benefit plan adjustment, net of tax	422,745				422,745
Derivative financial instruments, net of tax	3,482				3,482
Other comprehensive loss	438,823				438,064		759
Dividends	(45,503)					(45,503)
Issuance of stock awards	246			246
Issuance of stock awards (in shares)			41
Shares repurchased	(154,519)			(154,519)
Shares repurchased (in shares)			(1,819)
Share-based compensation	4,827			4,827
Ending Balance at Jul. 04, 2021	1,822,433		$ 7,175	166,295	(344,456)	1,982,430	10,989
Ending balance (in shares) at Jul. 04, 2021			98,829
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income/(loss)	111,555					111,140	415
Other comprehensive income/(loss):
Translation gain (loss)	(37,741)				(37,077)		(664)
Defined benefit plan adjustment, net of tax	1,693				1,693		0
Derivative financial instruments, net of tax	930				930		0
Other comprehensive loss	(35,118)				(34,454)		(664)
Dividends	(44,498)					(44,498)
Issuance of stock awards	251			251
Issuance of stock awards (in shares)			3
Shares repurchased	(83)			(83)
Shares repurchased (in shares)			(506)
Share-based compensation	6,192			6,192
Ending Balance at Oct. 03, 2021	1,860,732		$ 7,175	172,655	(378,910)	2,049,072	10,740
Ending balance (in shares) at Oct. 03, 2021			98,326
Beginning Balance at Dec. 31, 2021	$ 1,849,541	[1]	$ 7,175	119,690	(359,425)	2,070,005	12,096
Beginning balance (in shares) at Dec. 31, 2021	97,370		97,370
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income/(loss)	$ 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 loss	3,447				2,556		891
Dividends	(44,124)					(44,124)
Purchase of noncontrolling interest	(13,196)			(7,080)			(6,116)
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
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, 2021	$ 1,849,541	[1]	$ 7,175	119,690	(359,425)	2,070,005	12,096
Beginning balance (in shares) at Dec. 31, 2021	97,370		97,370
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income/(loss)	$ 369,876
Other comprehensive income/(loss):
Translation gain (loss)	(151,580)
Defined benefit plan adjustment, net of tax	(876)
Derivative financial instruments, net of tax	(792)
Other comprehensive loss					(153,100)
Purchase of noncontrolling interest				(7,080)
Ending Balance at Oct. 02, 2022	$ 1,935,081	[1]	$ 7,175	134,917	(512,525)	2,299,040	6,474
Ending balance (in shares) at Oct. 02, 2022	97,512		97,512
Beginning Balance at Apr. 03, 2022	$ 1,918,931		$ 7,175	120,266	(356,869)	2,141,214	7,145
Beginning balance (in shares) at Apr. 03, 2022			97,492
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income/(loss)	131,767					131,672	95
Other comprehensive income/(loss):
Translation gain (loss)	(70,314)				(69,790)		(524)
Defined benefit plan adjustment, net of tax	(1,928)				(1,928)
Derivative financial instruments, net of tax	(2,090)				(2,090)
Other comprehensive loss	(74,332)				(73,808)		(524)
Dividends	(48,041)					(48,041)
Issuance of stock awards	263			263
Issuance of stock awards (in shares)			13
Shares repurchased	(574)			(574)
Shares repurchased (in shares)			(10)
Share-based compensation	8,377			8,377
Ending Balance at Jul. 03, 2022	1,936,391		$ 7,175	128,332	(430,677)	2,224,845	6,716
Ending balance (in shares) at Jul. 03, 2022			97,495
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income/(loss)	122,502					122,229	273
Other comprehensive income/(loss):
Translation gain (loss)	(81,972)				(81,457)		(515)
Defined benefit plan adjustment, net of tax	861				861		0
Derivative financial instruments, net of tax	(1,252)				(1,252)		0
Other comprehensive loss	(82,363)				(81,848)		(515)
Dividends	(48,034)					(48,034)
Issuance of stock awards	270			270
Issuance of stock awards (in shares)			18
Shares repurchased	(72)			(72)
Shares repurchased (in shares)			(1)
Share-based compensation	6,387			6,387
Ending Balance at Oct. 02, 2022	$ 1,935,081	[1]	$ 7,175	$ 134,917	$ (512,525)	$ 2,299,040	$ 6,474
Ending balance (in shares) at Oct. 02, 2022	97,512		97,512

[1] 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 (the “United States” or “U.S.”).

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021
Cash Flows from Operating Activities:
Net income/(loss)	$ 369,876	$ (150,391)
Adjustments to reconcile net income to net cash provided by operating activities:
Asset impairments	13,857	3,490
Depreciation, depletion and amortization	231,095	185,541
Loss on early extinguishment of debt	0	20,184
Share-based compensation expense	25,453	17,392
Equity in earnings of affiliates	(10,151)	(5,701)
Cash dividends from affiliated companies	6,076	5,182
Net gain on disposition of assets	(178)	(2,376)
Net loss on divestiture of businesses	0	2,667
Pension and postretirement plan expense	6,951	583,340
Pension and postretirement plan contributions	(33,548)	(165,280)
Decrease in net deferred tax liabilities	(1,745)	(164,581)
Change in assets and liabilities, net of effects from acquisitions and foreign currency adjustments:
Trade accounts receivable	(143,221)	(142,699)
Inventories	(287,609)	(95,066)
Payable to suppliers	113,820	163,193
Prepaid expenses	(28,854)	(17,756)
Income taxes payable and other income tax items	44,493	(8,531)
Accrued expenses and other assets and liabilities	15,740	(8,530)
Net cash provided by operating activities	322,055	220,078
Cash Flows from Investing Activities:
Purchases of property, plant and equipment	(236,772)	(156,592)
Cost of acquisitions, net of cash acquired	(1,337,704)	(3,155)
Proceeds from the sale of businesses, net	0	91,569
Proceeds from the sale of assets	6,040	10,536
Other net investing activity	(1,976)	6,776
Net cash used in investing activities	(1,570,412)	(50,866)
Cash Flows from Financing Activities:
Proceeds from issuance of debt	1,579,750	138,382
Principal repayment of debt	(70,556)	(582,838)
Net change in commercial paper	(64,000)	202,000
Net decrease in outstanding checks	(16,509)	(10,736)
Proceeds from foreign exchange forward contracts and interest rate swaps	0	4,387
Cash dividends	(139,289)	(134,648)
Purchase of noncontrolling interest	(14,474)	0
Excess cash costs of early extinguishment of debt	0	(20,111)
Payments for share repurchases	(4,056)	(159,654)
Net cash provided/(used) by financing activities	1,270,866	(563,218)
Effects of Exchange Rate Changes on Cash	(11,249)	(10,830)
Net Increase/(Decrease) in Cash and Cash Equivalents	11,260	(404,836)
Cash and cash equivalents at beginning of period	170,978	564,848
Cash and cash equivalents at end of period	$ 182,238	$ 160,012

XML

Basis of Interim Presentation	9 Months Ended
	Oct. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Interim Presentation	Basis of Interim Presentation In the opinion of the management of Sonoco Products Company (the “Company” or “Sonoco”), the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments, unless otherwise stated) necessary to state fairly the consolidated financial position, results of operations and cash flows for the interim periods reported herein. Certain amounts within “Cash Flows from Operating Activities” in the Condensed Consolidated Statements of Cash Flows for the nine months ended October 3, 2021, have been reclassified to conform to the current year presentation. Operating results for the three- and nine-month periods ended October 2, 2022, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.With respect to the unaudited condensed consolidated financial information of the Company for the three- and nine-month periods ended October 2, 2022 and October 3, 2021 included in this Form 10-Q, PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report dated November 2, 2022 appearing herein, states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP is not subject to the liability provisions of Section 11 of the Securities Act of 1933 for their report on the unaudited financial information because that report is not a “report” or a “part” of a registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the Act.

XML

New Accounting Pronouncements

9 Months Ended

Oct. 02, 2022

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04 “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” The amendments in this update require that a buyer in a supplier finance program disclose qualitative and quantitative information about its supplier finance programs in each annual reporting period, including a description of key payment terms, and a rollforward of the outstanding obligation as of the end of the annual period. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company does not plan to elect early adoption of this update and does not expect this pronouncement to materially affect its consolidated financial statements.

In March 2022, the FASB issued ASU 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The amendments in this update eliminate the accounting guidance for troubled debt restructurings while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendments in this update also require that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases. The Company does not expect this pronouncement to materially affect its consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” Under current accounting standards, contract assets and contract liabilities acquired in a business combination are to be recorded at fair value using the ASC 805 measurement principle. ASU 2021-08 requires the acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606: Revenue from Contracts with Customers as if the acquirer had originated the contracts rather than at fair value. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company elected to early adopt ASU 2021-08 on a prospective basis as of January 1, 2022. The election to use practical expedients allowed under ASU 2021-08 will be applied on an acquisition-by-acquisition basis. There was no impact to the Company’s consolidated financial statements as of the adoption date.

During the nine-month period ended October 2, 2022, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at October 2, 2022, there are no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements.

XML

Acquisitions and Divestitures

9 Months Ended

Oct. 02, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions and Divestitures

Acquisitions and Divestitures

Acquisitions

On September 23, 2022, the Company entered into a definitive agreement to acquire S.P. Holding, Skjern A/S (“Skjern”), a privately owned manufacturer of paper based in Skjern, Denmark. The estimated $88,000 (purchase price subject to foreign currency fluctuations) all-cash transaction is expected to be completed in the fourth quarter of 2022, subject to customary closing conditions. Skjern produces high-grade paperboard from 100% recycled paper for rigid paper containers, tubes and cores, and other applications. The acquisition is expected to expand production capacity for the Company’s converting operations and customers throughout Europe.

On August 31, 2022, the Company completed the acquisition of Nordeste Tubetes and NE Tubetes (collectively “Nordeste”), two small tube and core operations in Brazil. Total consideration for the two businesses was $6,518, including cash paid at closing of $3,933, and deferred payments totaling $2,585 expected to be paid over the next six years. Goodwill for Nordeste, all of which is expected to be deductible for income tax purposes, consists of increased access to certain markets and existing customer relationships. Nordeste's financial results from the date acquired are included in the Company's Industrial Paper Packaging segment.

On January 26, 2022, the Company completed the acquisition of Ball Metalpack Holding, LLC, renamed Sonoco Metal Packaging (“Metal Packaging”), a leading supplier of sustainable metal packaging for food and household products and the largest aerosol can producer in North America, for $1,348,589, net of cash acquired. As previously disclosed, final consideration was subject to customary post-closing adjustments for working capital, cash and indebtedness and was finalized in the second quarter of 2022. The Company received cash from the sellers totaling $14,820, of which $6,924 was included in “Other receivables” in the Company's Condensed Consolidated Balance Sheet at April 3, 2022. Prior to the Company's acquisition of Metal Packaging, Ball Metalpack Holding, LLC was a joint venture formed in 2018 and owned by Platinum Equity (51%) and Ball Corporation (49%). Metal Packaging consists of eight manufacturing plants in the United States and a headquarters facility in Broomfield, Colorado. This acquisition fits the Company's strategy of investing in its core businesses as it complements the Company's largest Consumer Packaging franchise, global rigid paper containers, and further expands the Company's sustainable packaging portfolio to include metal packaging.

The Company's initial preliminary fair values of the assets acquired and the liabilities assumed in the Metal Packaging acquisition, as well as revised preliminary fair values reflecting adjustments made during the measurement period, are as follows:

	Initial Allocation		Measurement Period Adjustments		Revised Allocation
Trade accounts receivable	$	113,850	$	—	$	113,850
Other receivables	14,569		—		14,569
Inventories	190,070		556		190,626
Prepaid expenses	44,530		—		44,530
Property, plant and equipment	333,496		(1,363)		332,133
Right of use asset - operating leases	38,000		—		38,000
Other intangible assets	498,000		—		498,000
Goodwill	366,098		(9,187)		356,911
Other net tangible assets	48,069		(196)		47,873
Payable to suppliers	(105,580)		—		(105,580)
Accrued expenses and other	(30,671)		489		(30,182)
Notes payable and current portion of long-term debt	(46,463)		—		(46,463)
Noncurrent operating lease liabilities	(30,448)		—		(30,448)
Long-term debt	(39,543)		—		(39,543)
Deferred income taxes	(52,312)		1,805		(50,507)
Total purchase price, net of cash acquired	$	1,341,665	$	(7,896)	$	1,333,769

The allocation of the purchase price of Metal Packaging to the tangible and intangible assets acquired and liabilities assumed, as reflected under the heading “Revised Allocation” in the table above, is based on the Company's preliminary estimates of their fair value, based on information currently available. Management is continuing to finalize its valuation of certain assets and liabilities including, but not limited to: inventory; property, plant and equipment; goodwill; other intangible assets; deferred income taxes; trade accounts receivable; and accrued expenses and other, and expects to complete its valuations within one year of the date of acquisition.

Factors comprising goodwill include increased access to certain markets as well as the value of the assembled workforce. Approximately 67% of goodwill is expected to be deductible for income tax purposes. Metal Packaging's financial results are included in the Company's Consumer Packaging segment.

The Company has accounted for this acquisition as a business combination under the acquisition method and has included the results of operations of the acquired business in the Company's Condensed Consolidated Statements of Income from the date of acquisition.

The following table presents the unaudited financial results for Metal Packaging for the three-month period ended October 2, 2022 and from the date of acquisition through October 2, 2022:

Supplemental Information (unaudited)	Three Months Ended		January 26 to
Metal Packaging	October 2, 2022		October 2, 2022
Net sales	$	335,468	$	798,018
Net income	$	16,769	$	61,216

The following table presents the Company’s estimated unaudited pro forma consolidated results for the three- and nine-month periods ended October 2, 2022 and October 3, 2021, assuming the acquisition of Metal Packaging had occurred on January 1, 2021. This unaudited pro forma information is presented for informational purposes only and does not purport to represent the results of operations that would have been achieved if the acquisition had been completed at the beginning of 2021, nor is it necessarily indicative of future consolidated results.

Pro Forma Supplemental Information (unaudited)	Three Months Ended				Nine Months Ended
Consolidated	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Net sales	$	1,890,216	$	1,643,726	$	5,624,118	$	4,767,306
Net income/(loss) attributable to Sonoco	$	123,047	$	105,578	$	428,287	$	(215,045)

The unaudited pro forma information above does not project the Company’s expected results for any future period and gives no effect to any future synergistic benefits that may result from the combination or the costs of integrating the acquired operations with those of the Company. Unaudited pro forma information for the three- and nine-month periods ended October 2, 2022 and October 3, 2021 includes adjustments to depreciation, amortization, and income taxes based upon the preliminary fair value allocation of the purchase price to Metal Packaging's tangible and intangible assets acquired and liabilities assumed as though the acquisition had occurred on January 1, 2021. Interest expense on the additional debt issued by the Company to fund the acquisition and retention bonuses incurred related to the acquisition are also included in the unaudited pro forma information as if the acquisition had occurred on January 1, 2021. Acquisition-related costs of $793 and $27,195 were recognized during the three- and nine-month periods ended October 2, 2022, respectively, and charges related to fair value adjustments to acquisition-date inventory of $33,155 were recognized during the nine-month period ended October 2, 2022. These costs are excluded from 2022 unaudited pro forma net income and are instead reflected in 2021 pro forma net income as though the acquisition had occurred on January 1, 2021.

Divestitures

As previously disclosed, the Company completed the sale of its U.S. display and packaging business, part of the All Other group of businesses, to Hood Container Corporation on April 4, 2021 for $80,000 in cash. This business provided design, manufacturing and fulfillment of point-of-purchase displays, as well as contract packaging services, for consumer product customers and had approximately 450 employees. Its operations included eight manufacturing and fulfillment facilities and four sales and design centers.

The selling price was adjusted at closing for certain transaction expenses and for anticipated differences between targeted levels of working capital and the projected levels at the time of closing. Net cash proceeds of $79,704 were received on April 5, 2021 and the Company recognized a loss on the divestiture of this business of $5,516, before tax, in the first quarter of 2021. During the quarter ended October 3, 2021, the Company finalized the working capital settlement related to this sale. The settlement resulted in additional cash proceeds of $1,971 and the buyer's assumption of certain liabilities totaling $786. As a result, the Company recognized a reduction in the previously reported loss on the sale of this business of $2,757, before tax, in the third quarter of 2021, bringing the total loss on the sale of business to $2,759, before tax.

On September 30, 2021, the Company completed the sale of its plastics foods thermoforming business in Wilson, North Carolina (“Wilson Thermoforming”) to Placon for net cash proceeds of $3,528, resulting in the recognition of a pre-tax gain on the sale of $92.

The Company continually assesses its operational footprint as well as its overall portfolio of businesses and may consider the divestiture of plants and/or business units it considers to be suboptimal or nonstrategic.

Acquisition and Divestiture-Related Costs

Acquisition- and divestiture-related costs totaled $2,022 and $62,655 during the three- and nine-month periods ended October 2, 2022, respectively, primarily related to the Metal Packaging acquisition. These costs include legal and professional fees, investment banking fees, representation and warranty insurance premiums, and other transaction costs, totaling $2,022 and $29,500 during the three- and nine-month periods ended October 2, 2022, respectively, that are included in “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income. The costs for the nine-month period ended October 2, 2022 also include fair value adjustments to acquisition-date inventory totaling $33,155, that are included in “Cost of sales” in the Company's Condensed Consolidated Statements of Income.

Acquisition and divestiture-related costs totaled $1,015 and $12,503 during the three- and nine-month periods ended October 3, 2021, respectively. These costs, consisting primarily of legal and professional fees, are included in “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income.

XML

Shareholders' Equity

9 Months Ended

Oct. 02, 2022

Equity [Abstract]

Shareholders' Equity

Shareholders' Equity

Earnings/(loss) per Share

The following table sets forth the computation of basic and diluted earnings/(loss) per share:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Numerator:
Net income/(loss) attributable to Sonoco	$	122,229	$	111,140	$	369,234	$	(150,634)
Denominator:
Weighted average common shares outstanding:
Basic	98,013		98,955		97,978		100,039
Dilutive effect of stock-based compensation	749		470		691		—
Diluted	98,762		99,425		98,669		100,039
Net income/(loss) attributable to Sonoco per common share:
Basic	$	1.25	$	1.12	$	3.77	$	(1.51)
Diluted	$	1.24	$	1.12	$	3.74	$	(1.51)
Cash dividends	$	0.49	$	0.45	$	1.43	$	1.35

No adjustments were made to “Net income/(loss) attributable to Sonoco” in the computations of net income/(loss) attributable to Sonoco per common share.

Anti-dilutive Securities

Potentially dilutive securities are calculated in accordance with the treasury stock method, which assumes the proceeds from the exercise of all dilutive stock appreciation rights (“SARs”) are used to repurchase the Company’s common stock. Certain SARs are not dilutive because either the exercise price is greater than the average market price of the stock during the reporting period or assumed repurchases from proceeds from the exercise of the SARs were anti-dilutive. These SARs may become dilutive in the future if the market price of the Company's common stock appreciates.

The average numbers of SARs that were anti-dilutive and, therefore, not included in the computation of diluted earnings per share during the three- and nine-month periods ended October 2, 2022 and October 3, 2021 were as follows (in thousands):

	Three Months Ended		Nine Months Ended
	October 2, 2022	October 3, 2021	October 2, 2022	October 3, 2021
Anti-dilutive stock appreciation rights	366	—	380	142

Diluted earnings per share is computed by dividing net income by the weighted average shares outstanding, assuming all dilutive potential common shares were issued unless doing so is anti-dilutive. Such securities have an anti-dilutive impact in those periods in which a loss is reported. Diluted net loss per share of common stock for the nine-month period ended October 3, 2021 is the same as basic net loss per share because otherwise dilutive securities are excluded from the computation of diluted net loss per share. The following table sets forth the potentially dilutive securities excluded from the computation of diluted net loss per share during the nine-month period ended October 3, 2021:

	Nine Months Ended
	October 3, 2021
Dilutive securities excluded due to reported loss	469

Stock Repurchases

On April 20, 2021, the Company's Board of Directors (the “Board”) authorized the repurchase of the Company's common stock in an aggregate amount of up to $350,000. Following several repurchase transactions in 2021, a total of $137,972 remained available for share repurchases under this authorization as of December 31, 2021. No shares were purchased under this authorization during the nine months ended October 2, 2022.

On May 10, 2021, the Company entered into an accelerated share repurchase agreement (“ASR Agreement”) with a financial institution to repurchase outstanding shares of the Company's common stock. In exchange for an upfront payment of $150,000, which was funded with available cash on hand, the financial institution delivered 1,751 initial shares to the Company, representing 80% of the expected number of shares to be repurchased during the repurchase period based upon an estimated average repurchase price of $68.50 per share. The initial shares received were retired by the Company. The final number of shares repurchased and retired were based on the Company's volume-weighted average share price during the repurchase period, less a discount and subject to certain adjustments.

Pursuant to the ASR agreement, the financial institution elected to accelerate the settlement of the transaction in two tranches. On July 21, 2021, the financial institution transferred 168 additional shares to the Company based upon an effective settlement price of $66.52 and a notional value of $50,000, or one third of the total $150,000 prepayment. On July 26, 2021, the financial institution transferred 337 additional shares to the Company upon full settlement of the remaining $100,000 notional value of the transaction at the final settlement price of $66.45.

On May 6, 2021, the Company repurchased 54 shares for $3,615 from a private stockholder based upon the average closing stock price on that day. The cost of these share repurchases, as well as those related to the accelerated share agreement mentioned above, was allocated to “Capital in excess of stated value” on the Company's Condensed Consolidated Balance Sheet for the period ended July 4, 2021.

The Company regularly repurchases shares of its common stock to satisfy employee tax withholding obligations in association with certain share-based compensation awards. These repurchases, which are not part of a publicly announced plan or program, totaled 71 shares during the nine months ended October 2, 2022, at a cost of $4,056, and 100 shares during the nine months ended October 3, 2021, at a cost of $6,039.

Dividend Declarations

On July 20, 2022, the Board of Directors declared a regular quarterly dividend of $0.49 per share. This dividend was paid on September 9, 2022 to all shareholders of record as of August 10, 2022.

On October 18, 2022, the Board of Directors declared a regular quarterly dividend of $0.49 per share. This dividend is payable on December 9, 2022 to all shareholders of record as of November 10, 2022.

Noncontrolling interests

In April 2015, the Company acquired a 67% controlling interest in Graffo Paranaense de Embalagens S/A (“Graffo”). Prior to March 31, 2022, the Company consolidated 100% of Graffo, with the partner's 33% share included in “Noncontrolling Interests” within the equity section of the balance sheet. On March 31, 2022, the Company paid $14,474 in cash to acquire the remaining 33% ownership interest from the three noncontrolling partners, which resulted in a $6,116 reduction in noncontrolling interest, a $7,080 charge to capital in excess of stated value, and a $1,278 reduction to accrued expenses and other on the Company's Condensed Consolidated Balance Sheet as of July 3, 2022.

XML

Restructuring and Asset Impairments

9 Months Ended

Oct. 02, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Asset Impairments

Restructuring and Asset ImpairmentsDue to its geographic footprint and the cost-competitive nature of its businesses, the Company is continually seeking the most cost-effective means and structure to serve its customers and to respond to fundamental changes in its markets. As such, restructuring costs have been, and are expected to be, a recurring component of the Company's operating costs. The amount of these costs can vary significantly from quarter to quarter and from year to year depending upon the scope and location of the restructuring activities.

Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Restructuring and restructuring-related asset impairment charges	$	20,652	$	3,204	$	33,262	$	4,048
Other asset impairments	—		284		10,095		4,841
Restructuring/Asset Impairment Charges	$	20,652	$	3,488	$	43,357	$	8,889

The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Severance and Termination Benefits	$	9,265	$	3,726	$	13,578	$	7,592
Asset Impairments/(Gains from Disposal of Assets)	3,301		(1,722)		4,533		(8,207)
Other Costs	8,086		1,200		15,151		4,663
Restructuring and restructuring-related asset impairment charges	$	20,652	$	3,204	$	33,262	$	4,048

The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Consumer Packaging	$	4,350	$	2,450	$	8,529	$	3,708
Industrial Paper Packaging	7,674		(1,888)		10,029		(4,827)
All Other	18		555		(399)		3,075
Corporate	8,610		2,087		15,103		2,092
Restructuring and restructuring-related asset impairment charges	$	20,652	$	3,204	$	33,262	$	4,048

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		Asset Impairments/ Disposal of Assets		Other Costs		Total
Accrual Activity
Liability at December 31, 2021	$	10,917	$	—	$	1,873	$	12,790
2022 charges	13,578		4,533		15,151		33,262
Cash (payments)/receipts	(9,966)		4,751		(13,983)		(19,198)
Asset writedowns/disposals	—		(9,284)		—		(9,284)
Foreign currency translation	(229)		—		(41)		(270)
Liability at October 2, 2022	$	14,300	$	—	$	3,000	$	17,300

“Severance and Termination Benefits” during the first nine months of 2022 includes the cost of severance for approximately 180 employees whose positions were eliminated in conjunction with the Company's ongoing organizational effectiveness efforts.

“Asset Impairments/Disposal of Assets” during the first nine months of 2022 consists primarily of asset impairment charges related to plant closures and the shutdown of operations in the Consumer Packaging and Industrial Paper Packaging segments. These charges were partially offset by gains from the sale of previously impaired assets and closed facilities in the “All Other” group of businesses. Cash proceeds in the first nine months of 2022 relate to the sales of these assets and facilities as well as the partial sale of a previously closed operation in Canada, part of the Industrial Paper Packaging segment.

“Other Costs” during the first nine months of 2022 consists primarily of consulting services and costs related to plant closures including equipment removal, utilities, plant security, property taxes and insurance.

The Company expects to pay the majority of the remaining restructuring reserves by the end of 2022 using cash generated from operations. The Company also expects to recognize future additional charges totaling approximately $8,200 in connection with previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2022. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken.

Other Asset Impairments

The Company recognized other asset impairment charges totaling $10,095 in the nine-month period ended October 2, 2022.

As a result of the Company exiting its operations in Russia, consisting of two small tube and core plants in the Industrial Paper Packaging segment, other asset impairment charges of $9,165 were recognized in the nine-month period ended October 2, 2022. These charges include $3,747 of cumulative translation adjustment losses that were reclassified from accumulated other comprehensive income upon completion of the Company's exit from Russia on July 1, 2022.

Total other asset impairment charges in the nine-month period ended October 2, 2022 also include $930 of fixed asset impairments in the Company's plastics foods operations, part of the Consumer Packaging segment. These assets were determined to be impaired as the value of their projected undiscounted cash flows was no longer sufficient to recover their carrying value.

The Company recognized other asset impairment charges totaling $284 and $4,841 in the three- and nine-month periods ended October 3, 2021, respectively. The year-to-date charges consist of fixed asset impairments totaling $2,442 in the Company's plastics foods operations, part of the Consumer Packaging segment, and $2,399 in the temperature-assured packaging business, part of the All Other group of businesses. The assets were impaired as the value of their projected undiscounted cash flows was determined to no longer be sufficient to recover their carrying value.

These impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s Condensed Consolidated Statements of Income.

XML

Accumulated Other Comprehensive Loss

9 Months Ended

Oct. 02, 2022

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive LossThe following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the nine-month period ended October 2, 2022 and October 3, 2021:

	Foreign Currency Items		Defined Benefit Pension Items		Cash Flow Hedges		Accumulated Other Comprehensive Loss
Balance at December 31, 2021	$	(269,076)	$	(91,397)	$	1,048	$	(359,425)
Other comprehensive (loss)/income before reclassifications	(155,179)		(3,948)		4,136		(154,991)
Amounts reclassified from accumulated other comprehensive loss to net income	3,747		3,072		(4,286)		2,533
Amounts reclassified from accumulated other comprehensive loss to fixed assets	—		—		(642)		(642)
Other comprehensive (loss)/income	(151,432)		(876)		(792)		(153,100)
Balance at October 2, 2022	$	(420,508)	$	(92,273)	$	256	$	(512,525)
Balance at December 31, 2020	$	(194,024)	$	(562,747)	$	(71)	$	(756,842)
Other comprehensive (loss)/income before reclassifications	(57,261)		11,302		7,804		(38,155)
Amounts reclassified from accumulated other comprehensive loss to net loss	—		418,521		(2,403)		416,118
Amounts reclassified from accumulated other comprehensive loss to fixed assets	—		—		(31)		(31)
Other comprehensive (loss)/income	(57,261)		429,823		5,370		377,932
Balance at October 3, 2021	$	(251,285)	$	(132,924)	$	5,299	$	(378,910)

The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three- and nine-month periods ended October 2, 2022 and October 3, 2021:

	Amount Reclassified from Accumulated Other Comprehensive Loss
	Three Months Ended				Nine Months Ended
Details about Accumulated Other Comprehensive Loss Components	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021		Affected Line Item in the Condensed Consolidated Statements of Income
Foreign currency items
Loss on Russia restructuring(a)	$	—	—		$	(3,747)	—		Restructuring/Asset impairment charges
Gains/(losses) on cash flow hedges
Foreign exchange contracts	559		937		2,425		2,766		Net sales
Foreign exchange contracts	(433)		(711)		(2,139)		(2,129)		Cost of sales
Commodity contracts	2,434		2,051		5,371		2,626		Cost of sales
	2,560		2,277		5,657		3,263		Income/(Loss) before income taxes
Income tax impact	(473)		(607)		(1,371)		(860)		Provision for/(Benefit from) income taxes
	2,087		1,670		4,286		2,403		Net income/(loss)
Defined benefit pension items
Effect of settlement loss(b)	—		(21)		(430)		(547,652)		Non-operating pension costs
Amortization of defined    benefit pension items(b)	(1,229)		(1,640)		(3,655)		(14,973)		Non-operating pension costs
	(1,229)		(1,661)		(4,085)		(562,625)		Income/(Loss) before income taxes
Income tax impact	313		382		1,013		144,104		Provision for/(Benefit from) income taxes
	(916)		(1,279)		(3,072)		(418,521)		Net income/(loss)
Total reclassifications for the period	$	1,171	$	391	$	(2,533)	$	(416,118)	Net income/(loss)

(a) See Note 5 for additional details.

(b) See Note 11 for additional details.

The following table summarizes the before and after tax amounts for the various components of other comprehensive (loss)/income for the three-month periods ended October 2, 2022 and October 3, 2021:

		Three months ended October 2, 2022							Three months ended October 3, 2021
		Before Tax Amount		Tax (Expense) Benefit		After Tax Amount			Before Tax Amount		Tax (Expense) Benefit		After Tax Amount
Foreign currency items:
	Other comprehensive loss before reclassifications	$	(81,457)	$	—	$	(81,457)		$	(37,077)	$	—	$	(37,077)
	Amounts reclassified from accumulated other    comprehensive loss to net income(a)	—		—		—			—		—		—
	Net other comprehensive loss from foreign currency items	(81,457)		—		(81,457)		—	(37,077)		—		(37,077)
Defined benefit pension items:
	Other comprehensive (loss)/income before reclassifications	(74)		19		(55)			559		(145)		414
	Amounts reclassified from accumulated other    comprehensive loss to net income(b)	1,229		(313)		916			1,661		(382)		1,279
	Net other comprehensive income/(loss) from defined benefit pension items	1,155		(294)		861			2,220		(527)		1,693
Gains and losses on cash flow hedges:
	Other comprehensive income/(loss) before reclassifications	1,336		(247)		1,089			3,525		(940)		2,585
	Amounts reclassified from accumulated other    comprehensive loss to net income(c)	(2,560)		473		(2,087)			(2,277)		607		(1,670)
	Amounts reclassified from accumulated other comprehensive loss to fixed assets	(312)		58		(254)			20		(5)		15
	Net other comprehensive (loss)/ income from cash flow hedges	(1,536)		284		(1,252)			1,268		(338)		930
Other comprehensive (loss)/income		$	(81,838)	$	(10)	$	(81,848)		$	(33,589)	$	(865)	$	(34,454)

(a) See Note 5 for additional details.

(b) See Note 11 for additional details.

(c) See Note 9 for additional details.

The following table summarizes the before and after tax amounts for the various components of other comprehensive (loss)/income for the nine-month periods ended October 2, 2022 and October 3, 2021:

		Nine-month period ended October 2, 2022						Nine-month period ended October 3, 2021
		Before Tax Amount		Tax (Expense) Benefit		After Tax Amount		Before Tax Amount		Tax (Expense) Benefit		After Tax Amount
Foreign currency items:
	Other comprehensive loss before reclassifications	$	(155,179)	$	—	$	(155,179)	$	(57,261)	$	—	$	(57,261)
	Amounts reclassified from accumulated other    comprehensive loss to net income/(loss)(a)	3,747		—		3,747		—		—		—
	Net other comprehensive loss from foreign currency items	(151,432)		—		(151,432)		(57,261)		—		(57,261)
Defined benefit pension items:
	Other comprehensive (loss)/income before reclassifications	(5,257)		1,309		(3,948)		14,923		(3,621)		11,302
	Amounts reclassified from accumulated other    comprehensive loss to net income/(loss)(b)	4,085		(1,013)		3,072		562,625		(144,104)		418,521
	Net other comprehensive (loss)/income from defined benefit pension items	(1,172)		296		(876)		577,548		(147,725)		429,823
Gains and losses on cash flow hedges:
	Other comprehensive income/(loss) before reclassifications	5,607		(1,471)		4,136		10,536		(2,732)		7,804
	Amounts reclassified from accumulated other    comprehensive loss to net income/(loss)(c)	(5,657)		1,371		(4,286)		(3,263)		860		(2,403)
	Amounts reclassified from accumulated other comprehensive loss to fixed assets	(864)		222		(642)		(42)		11		(31)
	Net other comprehensive (loss)/income from cash flow hedges	(914)		122		(792)		7,231		(1,861)		5,370
Other comprehensive (loss)/ income		$	(153,518)	$	418	$	(153,100)	$	527,518	$	(149,586)	$	377,932

(a) See Note 5 for additional details.

(b) See Note 11 for additional details.

(c) See Note 9 for additional details.

XML

Goodwill and Other Intangible Assets

9 Months Ended

Oct. 02, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

A summary of the changes in goodwill for the nine-month period ended October 2, 2022 is as follows: 

	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Goodwill at December 31, 2021	$	572,416	$	367,780	$	384,305	$	1,324,501
2022 Acquisitions	366,098		5,414		—		371,512
Foreign currency translation	(22,001)		(17,584)		(5,293)		(44,878)
Measurement period adjustments	(9,187)		—		—		(9,187)
Goodwill at October 2, 2022	$	907,326	$	355,610	$	379,012	$	1,641,948

Goodwill activity reflected under the captions “2022 Acquisitions” and “Measurement period adjustments” relate to the January 26, 2022 acquisition of Metal Packaging and the August 31, 2022 acquisition of Nordeste. See Note 3 for additional information.

The Company assesses goodwill for impairment annually during the third quarter, or from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. The Company completed its most recent annual goodwill impairment testing during the third quarter of 2022 and analyzed certain qualitative and quantitative factors in determining whether a goodwill impairment existed. The Company's assessments reflected a number of significant management assumptions and estimates including the Company's forecast of sales growth, gross profit margins, and discount rates. Changes in these assumptions could materially impact the Company's conclusions. Based on its assessments, the Company concluded that there was no impairment of goodwill for any of its reporting units.

Although no reporting units failed the annual impairment test, in management’s opinion the goodwill balances of the Plastics - Healthcare and Protexic reporting units are at risk of impairment in the near term if each reporting unit's operations do not perform in line with management's expectations, or if there is a negative change in the long-term outlook for the business or in other factors such as the discount rate.

In the annual goodwill impairment analysis completed during the third quarter of 2022, projected future cash flows for the Plastics - Healthcare reporting unit were discounted at 9.8% and its estimated fair value was determined to exceed its carrying value by approximately 18.0%. Based on the discounted cash flow model and holding other valuation assumptions constant, the discount rate would have to be increased to 11.0% in order for the estimated fair value of the reporting unit to fall below carrying value. Total goodwill associated with this reporting unit was $60,710 at October 2, 2022.

In the annual goodwill impairment analysis completed during the third quarter of 2022, projected future cash flows for the Protexic reporting unit were discounted at 9.5% and its estimated fair value was determined to exceed its carrying value by approximately 18.3%. Based on the discounted cash flow model and holding other valuation assumptions constant, the discount rate would have to be increased to 11.5% in order for the estimated fair value of the reporting unit to fall below carrying value. Total goodwill associated with this reporting unit was $29,051 at October 2, 2022.

During the time subsequent to the annual evaluation, and at October 2, 2022, the Company considered whether any events and/or changes in circumstances had resulted in the likelihood that the goodwill of any of its reporting units may have been impaired. It is management's opinion that no such events and/or changes in circumstances have occurred.

Other Intangible Assets

A summary of other intangible assets as of October 2, 2022 and December 31, 2021 is as follows:    

	October 2, 2022		December 31, 2021
Other Intangible Assets, gross:
Patents	$	29,296	$	29,315
Customer lists	1,040,346		592,195
Trade names	31,641		32,043
Proprietary technology	57,608		22,846
Other	2,743		2,807
Total Other Intangible Assets, gross	$	1,161,634	$	679,206
Accumulated Amortization:
Patents	$	(17,497)	$	(16,275)
Customer lists	(392,932)		(347,274)
Trade names	(15,397)		(14,106)
Proprietary technology	(24,038)		(21,394)
Other	(2,047)		(2,014)
Total Accumulated Amortization	$	(451,911)	$	(401,063)
Other Intangible Assets, net	$	709,723	$	278,143

The acquisition of Metal Packaging on January 26, 2022 resulted in the addition of $498,000 of intangible assets, primarily customer lists and proprietary technology, which are expected to be amortized over their average useful lives of approximately 13.6 years. See Note 3 for additional information about the Metal Packaging acquisition.

Other Intangible Assets are amortized on a straight-line basis over their respective useful lives, which generally range from three to forty years. The Company has no intangible assets with indefinite lives.

Aggregate amortization expense was $20,690 and $12,257 for the three-month periods ended October 2, 2022 and October 3, 2021, respectively, and $60,361 and $37,117 for the nine-month periods ended October 2, 2022 and October 3, 2021, respectively. Amortization expense on other intangible assets is expected to total approximately $80,800 in 2022, $79,100 in 2023, $71,700 in 2024, $61,100 in 2025 and $57,800 in 2026.

XML

Debt

9 Months Ended

Oct. 02, 2022

Debt Disclosure [Abstract]

Debt

Debt

Details of the Company's debt at October 2, 2022 and December 31, 2021 are as follows:

	October 2, 2022		December 31, 2021
Commercial paper	$	285,000	$	349,000
Syndicated term loan due February 2025	299,602		—
1.800% notes due February 2025	398,168		—
2.250% notes due February 2027	297,780		—
2.850% notes due February 2032	495,132		—
3.125% notes due May 2030	595,771		595,342
5.750% notes due November 2040	536,206		536,182
Other foreign denominated debt	32,478		55,432
Finance lease obligations	103,027		60,282
Other debt	96,866		14,425
Total debt	$	3,140,030	$	1,610,663
Less current portion and short-term notes	416,929		411,557
Long-term debt	$	2,723,101	$	1,199,106

On January 21, 2022, the Company completed a registered public offering of green bonds with an aggregate principal amount of $1,200,000. These unsecured notes (the “Notes”) consisted of the following:

	Principal Amount		Issuance Costs and Discounts		Net Proceeds		Interest Rate	Maturity
2025 Notes	$	400,000	$	(2,356)	$	397,644	1.800%	February 1, 2025
2027 Notes	300,000		(2,565)		297,435		2.250%	February 1, 2027
2032 Notes	500,000		(5,220)		494,780		2.850%	February 1, 2032
Total	$	1,200,000	$	(10,141)	$	1,189,859

The Notes are senior unsecured obligations and rank equal in right of payment to the Company’s other senior unsecured debt from time to time outstanding. The indenture governing the Notes contains certain covenants with respect to the Company that, among other things, restrict the entry into additional secured indebtedness, sale and leaseback transactions and certain mergers, consolidations and transfers of all or substantially all of the Company’s assets. The Company used an amount equal to the net proceeds from the Notes to partially fund the January 26, 2022 acquisition of Metal Packaging.

Also on January 21, 2022, the Company entered into a $300,000 three-year term loan facility (the “Term Loan Facility”) with a syndicate of eight banks. The full $300,000 was drawn from this facility on January 26, 2022, and the proceeds used to partially fund the acquisition of Metal Packaging. Interest is assessed at the Secured Overnight Financing Rate (“SOFR”) plus a margin based on a pricing grid that uses the Company’s credit ratings. The current SOFR margin is 122.5 basis points. There is no required amortization and repayment can be accelerated at any time without penalty at the Company's discretion. Borrowings under the Term Loan Facility mature on January 27, 2025.

On April 28, 2021, the Company commenced a cash tender offer to purchase up to $300,000 of the $600,000 then-outstanding principal amount of its 5.750% notes due November 2040. Upon expiration of the tender offer on May 25, 2021, the Company repurchased 10.53% of its outstanding 5.750% notes for a total cash cost of $81,961, as shown below:

	Principal Amount Tendered		Premium and Other Amounts Paid		Total Cash Paid
5.750% notes due November 2040	$	63,206	$	18,755	$	81,961

On April 28, 2021, the Company entered into a reverse treasury lock agreement intended to fix the cash cost to fund approximately $100,000 of the maximum $300,000 principal amount subject to being tendered. The settlement of the reverse treasury lock on May 13, 2021 resulted in a loss of $1,356. In addition, the Company wrote off a proportional share of unamortized bond issuance costs and unamortized original issue discounts associated with the 5.750% notes. These non-cash writeoffs net to $73, which combined with the hedge loss and premium and other amounts paid, resulted in a pretax loss from the early extinguishment of debt totaling $20,184 during the second quarter of 2021.

The Company's 150,000 euro-denominated loan, which bore 1% annual interest, matured on May 25, 2021, and a U.S. dollar equivalent cash payment of $177,780 was made to settle the debt. On April 7, 2021, the Company entered into two forward contracts to buy a total of 150,000 euros in order to manage foreign currency risk related to the Company's funding of the debt repayment upon maturity. The Company recognized a gain of $4,387 upon the May 21, 2021 maturity of these forward contracts. The gain is included in “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income for the nine-month period ended October 3, 2021 and the proceeds from the settlement of the contracts and the debt maturity payment are reflected in “Net cash provided/(used) by financing activities” in the Company’s Condensed Consolidated Statement of Cash Flows for the nine months ended October 3, 2021.

Certain of the Company’s debt agreements impose restrictions with respect to the maintenance of financial ratios and the disposition of assets. The most restrictive covenants currently require the Company to maintain a minimum level of interest coverage and a minimum level of net worth, as defined in the agreements. As of October 2, 2022, the Company’s interest coverage and net worth were substantially above the minimum levels required under these covenants.

XML

Financial Instruments and Derivatives

9 Months Ended

Oct. 02, 2022

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.

	October 2, 2022				December 31, 2021
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, net of current portion	$	2,723,101	$	2,444,965	$	1,199,106	$	1,434,711

The carrying value of cash and cash equivalents and short-term debt approximates fair value. The fair value of long-term debt is determined based on recent trade information in the financial markets of the Company’s public debt or is determined by discounting future cash flows using interest rates available to the Company for issues with similar terms and maturities which is considered a Level 2 fair value measurement.

Cash Flow Hedges

At October 2, 2022 and December 31, 2021, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows. These contracts, which have maturities ranging to December 2024, qualify as cash flow hedges under U.S. GAAP. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item.

Commodity Cash Flow Hedges

Certain derivative contracts entered into to manage the cost of anticipated purchases of natural gas and aluminum have been designated by the Company as cash flow hedges. At October 2, 2022, these contracts included natural gas swaps covering approximately 600,000 MMBTUs. These contracts represented approximately 24% of anticipated usage in North America for the remainder of 2022 and 1% of anticipated usage in both 2023 and 2024. The Company also has certain natural gas hedges that it does not treat as cash flow hedges. See “Non-Designated Derivatives” below for a discussion of these hedges. The fair value of the Company’s commodity cash flow hedges netted to a gain position of $1,892 and $1,491 at October 2, 2022 and December 31, 2021, respectively. The amount of the gain included in Accumulated Other Comprehensive Income at October 2, 2022 expected to be reclassified to the income statement during the next twelve months is $1,881.

Foreign Currency Cash Flow Hedges

The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales, purchases, and capital spending expected to occur in 2022 and 2023. The net positions of these contracts at October 2, 2022 were as follows (in thousands):

Currency	Action	Quantity
Colombian peso	purchase	7,354,331
Mexican peso	purchase	123,095
Polish zloty	purchase	22,382
Czech koruna	purchase	16,675
Euro	purchase	9,989
Turkish lira	purchase	5,086
Canadian dollar	purchase	3,798
British pound	purchase	819

The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to a loss position of $(36) and a gain position of $336 at October 2, 2022 and December 31, 2021, respectively. Losses of $(36) are expected to be reclassified from accumulated other comprehensive loss to the income statement during the next twelve months. In addition, the Company has entered into forward contracts to hedge certain foreign currency cash flow transactions related to construction in progress. As of October 2, 2022 and December 31, 2021, the net position of these contracts was $(1,476) and $(457), respectively. During the nine-month period ended October 2, 2022, losses from these hedges totaling $864 were reclassified from accumulated other comprehensive loss and included in the carrying value of the capitalized expenditures. Losses of $1,476 are expected to be reclassified from accumulated other comprehensive loss and included in the carrying value of the related fixed assets acquired during the next twelve months.

Non-Designated Derivatives

The Company routinely enters into other derivative contracts which are not designated for hedge accounting treatment under ASC 815. As such, changes in fair value of these non-designated derivatives are recorded directly to income and expense in the periods that they occur.

Foreign Currency Hedges

The Company routinely enters into forward contracts or swaps to economically hedge the currency exposure of intercompany debt and foreign currency denominated receivables and payables. The net currency positions of these non-designated contracts at October 2, 2022, were as follows (in thousands):

Currency	Action	Quantity
Colombian peso	purchase	24,748,486
Indonesian rupiah	purchase	8,083,663
Mexican peso	purchase	419,703
Turkish lira	purchase	44,125
Canadian dollar	purchase	9,568
Thai baht	sell	(11,143)

Commodity Hedges

The Company has entered into non-designated derivative contracts to manage the cost of anticipated purchases of natural gas. At October 2, 2022, these contracts consisted of natural gas swaps covering approximately 8.2 million MMBTUs and represented approximately 47% of anticipated usage in North America for the remainder of 2022 and 69% and 17% of anticipated usage in 2023 and 2024, respectively.

Interest Rate Hedges

Pursuant to the registered public offering of unsecured 2.850% notes with a principal amount of $500,000 maturing on February 1, 2032, the Company entered into treasury lock derivative instruments with two banks, with a notional principal amount of $150,000 each on December 29, 2021. These instruments had the risk management objective of reducing exposure to the Company of increases in the underlying Treasury index up to the date of pricing of the notes. The fair value of the contracts was a net loss position of $(550) at December 31, 2021. The derivatives were settled when the bonds priced on January 11, 2022, with the Company recognizing a gain on the settlement of $5,201. The gain is included in “Selling, general and administrative expenses” on the Company's Condensed Consolidated Statements of Income for the nine-month period ended October 2, 2022.

The fair value of the Company’s non-designated derivatives position was a gain of $2,369 and $92 at October 2, 2022 and December 31, 2021, respectively.

The following table sets forth the location and fair values of the Company’s derivative instruments at October 2, 2022 and December 31, 2021:

Description	Balance Sheet Location	October 2, 2022		December 31, 2021
Derivatives designated as hedging instruments:
Commodity Contracts	Prepaid expenses	$	1,905	$	1,599
Commodity Contracts	Other assets	$	23	$	—
Commodity Contracts	Accrued expenses and other	$	(25)	$	(108)
Commodity Contracts	Other liabilities	$	(11)	$	—
Foreign Exchange Contracts	Prepaid expenses	$	3,098	$	848
Foreign Exchange Contracts	Accrued expenses and other	$	(4,610)	$	(969)
Derivatives not designated as hedging instruments:
Commodity Contracts	Prepaid expenses	$	5,069	$	1,815
Commodity Contracts	Other assets	$	689	$	—
Commodity Contracts	Accrued expenses and other	$	(2,497)	$	(1,132)
Commodity Contracts	Other liabilities	$	(812)	$	—
Foreign Exchange Contracts	Prepaid expenses	$	237	$	135
Foreign Exchange Contracts	Accrued expenses and other	$	(317)	$	(176)
Interest Rate Lock Contract	Accrued expenses and other	$	—	$	(550)

While certain of the Company’s derivative contract arrangements with its counterparties provide for the ability to settle contracts on a net basis, the Company reports its derivative positions on a gross basis. There are no collateral arrangements or requirements in these agreements.

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three-month periods ended October 2, 2022 and October 3, 2021, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures:

Description	Amount of Gain or (Loss) Recognized in OCI on Derivatives		Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income
Derivatives in Cash Flow Hedging Relationships:
Three-month period ended October 2, 2022
Foreign Exchange Contracts	$	(290)	Net sales	$	559
			Cost of sales	$	(433)
Commodity Contracts	$	1,626	Cost of sales	$	2,434
Three-month period ended October 3, 2021
Foreign Exchange Contracts	$	(407)	Net sales	$	937
			Cost of sales	$	(711)
Commodity Contracts	$	4,200	Cost of sales	$	2,051

 

Description	Gain or (Loss) Recognized		Location of Gain or (Loss) Recognized in Income Statement
Derivatives not Designated as Hedging Instruments:
Three-month period ended October 2, 2022
Commodity Contracts	$	2,574	Cost of sales
Foreign Exchange Contracts	$	(484)	Selling, general and administrative
Three-month period ended October 3, 2021
Commodity Contracts	$	2,861	Cost of sales
Foreign Exchange Contracts	$	(675)	Selling, general and administrative

	Three-month period ended October 2, 2022				Three-month period ended October 3, 2021
Description	Revenue		Cost of sales		Revenue		Cost of sales
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income	$	559	$	2,001	$	937	$	1,340
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	$	559	$	(433)	$	937	$	(711)
Commodity contracts:
Amount of gain reclassified from accumulated other comprehensive loss into net income	$	—	$	2,434	$	—	$	2,051

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the nine months ended October 2, 2022 and October 3, 2021, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures:

Description	Amount of Gain or (Loss) Recognized in OCI on Derivatives		Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income
Derivatives in Cash Flow Hedging Relationships:
Nine-month period ended October 2, 2022
Foreign Exchange Contracts	$	(202)	Net sales	$	2,425
			Cost of sales	$	(2,139)
Commodity Contracts	$	5,809	Cost of sales	$	5,371
Nine-month period ended October 3, 2021
Foreign Exchange Contracts	$	156	Net sales	$	2,766
			Cost of sales	$	(2,129)
Commodity Contracts	$	10,801	Cost of sales	$	2,626

 

Description	Gain or (Loss) Recognized		Location of Gain or (Loss) Recognized in Income Statement
Derivatives not Designated as Hedging Instruments:
Nine-month period ended October 2, 2022
Commodity Contracts	$	10,072	Cost of sales
Foreign Exchange Contracts	$	(283)	Selling, general and administrative
Nine-month period ended October 3, 2021
Commodity Contracts	$	3,295	Cost of sales
Foreign Exchange Contracts	$	(906)	Selling, general and administrative

	Nine-month period ended October 2, 2022				Nine-month period ended October 3, 2021
Description	Revenue		Cost of sales		Revenue		Cost of sales
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income	$	2,425	$	3,232	$	2,766	$	497
Gain or (loss) on cash flow hedging relationships:
Foreign exchange contracts:
Amount of gain/(loss) reclassified from accumulated other comprehensive income into net income	$	2,425	$	(2,139)	$	2,766	$	(2,129)
Commodity contracts:
Amount of gain reclassified from accumulated other comprehensive income into net income	$	—	$	5,371	$	—	$	2,626

XML

Fair Value Measurements

9 Months Ended

Oct. 02, 2022

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:

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

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:

Description	October 2, 2022		Assets measured at NAV		Level 1		Level 2		Level 3
Hedge derivatives, net:
Commodity contracts	$	1,892	$	—	$	—	$	1,892	$	—
Foreign exchange contracts	$	(1,512)	$	—	$	—	$	(1,512)	$	—
Non-hedge derivatives, net:
Commodity contracts	$	2,449	$	—	$	—	$	2,449	$	—
Foreign exchange contracts	$	(80)	$	—	$	—	$	(80)	$	—
Description	December 31, 2021		Assets measured at NAV		Level 1		Level 2		Level 3
Hedge derivatives, net:
Commodity contracts	$	1,491	$	—	$	—	$	1,491	$	—
Foreign exchange contracts	$	(121)	$	—	$	—	$	(121)	$	—
Non-hedge derivatives, net:
Commodity contracts	$	683	$	—	$	—	$	683	$	—
Foreign exchange contracts	$	(41)	$	—	$	—	$	(41)	$	—
Interest rate lock contract	$	(550)	$	—	$	—	$	(550)	$	—

As discussed in Note 9, the Company uses derivatives to mitigate the effect of commodity fluctuations, foreign currency fluctuations and, from time to time, interest rate movements. Fair value measurements for the Company’s derivatives are classified under Level 2 because such measurements are estimated based on observable inputs such as interest rates, yield curves, spot and future commodity prices and spot and future exchange rates.

The Company does not currently have any non-financial assets or liabilities that are recognized or disclosed at fair value on a recurring basis. None of the Company’s financial assets or liabilities are measured at fair value using significant unobservable inputs. There were no transfers in or out of Level 1 or Level 2 fair value measurements during the three- and nine-month periods ended October 2, 2022.

XML

Employee Benefit Plans

9 Months Ended

Oct. 02, 2022

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:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Retirement Plans
Service cost	$	796	$	968	$	2,459	$	2,949
Interest cost	2,593		2,287		7,974		22,051
Expected return on plan assets	(2,527)		(3,361)		(7,670)		(21,672)
Amortization of prior service cost	220		226		673		687
Amortization of net actuarial loss	1,179		1,600		3,495		14,849
Effect of settlement loss	—		21		430		547,652
Net periodic benefit cost	$	2,261	$	1,741	$	7,361	$	566,516
Retiree Health and Life Insurance Plans
Service cost	$	80	$	93	$	241	$	282
Interest cost	64		49		194		149
Expected return on plan assets	(110)		(111)		(332)		(335)
Amortization of net actuarial gain	(170)		(186)		(513)		(563)
Net periodic benefit income	$	(136)	$	(155)	$	(410)	$	(467)

Settlement Charges

The Company recognized settlement charges of $430 and $361 during the nine-month periods ended October 2, 2022 and October 3, 2021, respectively. These charges resulted from payments made to certain participants in the Company's non-union Canadian pension plan who elected a lump sum distribution option upon retirement. Additional settlement charges related to the Canadian pension plans may be recognized over the remainder of 2022 as a result of ongoing lump-sum distributions.

The Company terminated the Sonoco Pension Plan for Inactive Participants (the “Inactive Plan”), a tax-qualified defined benefit plan, effective September 30, 2019, and settled the liabilities of the Inactive Plan in the second quarter of 2021 through a combination of lump-sum payments and the purchase of group annuity contracts, resulting in the recognition of non-cash, pre-tax settlement charges totaling $547,291 in the second quarter of 2021.

Contributions

The Company made aggregate contributions of $11,600 and $142,615 to its defined benefit retirement and retiree health and life insurance plans during the nine-month periods ended October 2, 2022 and October 3, 2021, respectively. The 2021 contributions include $133,000 contributed to the Inactive Plan during the second quarter of 2021 in order for it to be fully funded upon final settlement. The Company expects to make additional aggregate contributions of approximately $4,100 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2022.

Sonoco Retirement and Savings Plan

The Sonoco Retirement and Savings Plan is a defined contribution retirement plan provided for certain of the Company’s U.S. employees. The plan is comprised of both an elective and non-elective component.

The elective component of the plan, which is designed to meet the requirements of Section 401(k) of the Internal Revenue Code, allows participants to set aside a portion of their wages and salaries for retirement and encourages saving

by matching a portion of their contributions with contributions from the Company. The plan provides for participant contributions of 1% to 100% of gross pay. Effective January 1, 2022, the Company’s match on elective contributions to the plan increased from 50% of the first 4% of compensation contributed by participants to 100% of the first 6% as a result of changes to the plan, described below.

The non-elective component of the plan, the Sonoco Retirement Contribution (“SRC”), was eliminated effective January 1, 2022. The SRC provided for an annual Company contribution equal to 4% of the participant's eligible pay plus 4% of eligible pay in excess of the social security wage base to eligible participant accounts. SRC contributions were funded annually in the first quarter, following the year in which the benefit was earned. SRC contributions totaled $21,948 and $22,665 during the nine-month periods ended October 2, 2022 and October 3, 2021, respectively. No additional SRC contributions will occur. The Company recognized expense related to the SRC of $5,456 and $17,290 for the three- and nine-month periods ended October 3, 2021, respectively.

XML

Income Taxes

9 Months Ended

Oct. 02, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s effective tax rates for the three- and nine-month periods ended October 2, 2022 were 23.7% and 24.5%, respectively, and its rates for the three- and nine-month periods ended October 3, 2021 were 2.3% and 37.0%, respectively. The Company's effective tax rates varied from the U.S. statutory rate due primarily to rate differences between U.S. and non-U.S. jurisdictions and the relative amounts earned in those jurisdictions, state income taxes, and discrete tax adjustments that were not consistent year over year. The higher 2022 rate was primarily driven by the absence of the 2021 benefit associated with the amendment of the Company’s 2017 tax return to report increased utilization of its foreign tax credits.

The Company and/or its subsidiaries file federal, state and local income tax returns in the United States and various foreign jurisdictions. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years prior to 2016.

The Company’s reserve for uncertain tax benefits has increased by $1,614 since December 31, 2021 due primarily to an increase in reserves related to existing tax positions. The Company believes that it is reasonably possible that the amount reserved for unrecognized tax benefits at October 2, 2022 could increase by approximately $200 over the next twelve months. Although the Company’s estimate for the potential outcome for any uncertain tax issue is highly judgmental, management believes that any reasonably foreseeable outcomes related to these matters have been adequately provided for. However, future results may include favorable or unfavorable adjustments to estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. Additionally, the jurisdictions in which earnings or deductions are realized may differ from current estimates. As a result, the Company’s effective tax rate may fluctuate significantly on a quarterly basis. The Company has operations and pays taxes in many countries outside of the U.S. and taxes on those earnings are subject to varying rates. The Company is not dependent upon the favorable benefit of any one jurisdiction to an extent that the loss of such benefit would have a material effect on the Company’s overall effective tax rate.

XML

Leases

9 Months Ended

Oct. 02, 2022

Leases [Abstract]

Leases

Leases

The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, and warehouses), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company's lease contracts is performed after contemplating all the relevant facts and circumstances in accordance with guidance under ASC 842. Most real estate leases, in particular, include one or more options to renew, with renewal terms that typically extend the lease term in increments from one to five years. The Company's leases do not have any significant residual value guarantees or restrictive covenants.

As the implicit rate in the Company's leases is normally not readily determinable, the Company generally calculates its lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years.

The Company completed the acquisition of Metal Packaging on January 26, 2022. The acquisition included both operating and finance lease assets and liabilities. The acquired operating lease liabilities of $33,910 had a weighted average remaining lease maturity term and discount rate of 11.0 years and 2.8%, respectively, and the acquired finance

lease liabilities of $46,687 had a weighted average remaining lease maturity term and discount rate of 3.8 years and 7.5%, respectively, as of the date of the acquisition.

The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at October 2, 2022 and December 31, 2021:

Classification	Balance Sheet Location	October 2, 2022		December 31, 2021
Lease Assets
Operating lease assets	Right of Use Asset - Operating Leases	$	296,838	$	268,390
Finance lease assets	Other Assets	103,540		55,826
Total lease assets		$	400,378	$	324,216
Lease Liabilities
Current operating lease liabilities	Accrued expenses and other	$	49,606	$	45,305
Current finance lease liabilities	Notes payable and current portion of debt	16,115		6,952
Total current lease liabilities		$	65,721	$	52,257
Noncurrent operating lease liabilities	Noncurrent Operating Lease Liabilities	$	253,466	$	234,167
Noncurrent finance lease liabilities	Long-term Debt, Net of Current Portion	86,912		53,330
Total noncurrent lease liabilities		$	340,378	$	287,497
Total lease liabilities		$	406,099	$	339,754

Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term.

The following table sets forth the components of the Company’s total lease cost for the three- and nine-month periods ended October 2, 2022 and October 3, 2021:

		Three Months Ended				Nine Months Ended
Lease Cost		October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Operating lease cost	(a)	$	12,863	$	11,623	$	38,679	$	36,720
Finance lease cost:
Amortization of lease asset	(a)	3,133		1,476		9,122		4,133
Interest on lease liabilities	(b)	1,270		367		3,517		997
Variable lease cost	(a) (c)	7,894		6,796		22,416		19,569
Impairment charges	(d)	61		—		293		—
Total lease cost		$	25,221	$	20,262	$	74,027	$	61,419

(a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively.

(b) Included in interest expense.

(c) Also includes short term lease costs, which are deemed immaterial.

(d) Impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s

Consolidated Statements of Income. See Note 5 for more information.

The following table sets forth certain lease-related information for the nine-month periods ended October 2, 2022 and October 3, 2021:

	Nine Months Ended
	October 2, 2022		October 3, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$	39,405	$	38,757
Operating cash flows used by finance leases	$	3,517	$	997
Financing cash flows used by finance leases	$	9,181	$	3,375
Noncash investing and financing activities:
Leased assets obtained in exchange for new operating lease liabilities	$	31,048	$	12,230
Leased assets obtained in exchange for new finance lease liabilities	$	8,224	$	7,071
Modification to leased assets for increase in operating lease liabilities	$	2,258	$	12,059
Modification to leased assets for (decrease)/increase in finance lease liabilities	$	(642)	$	9,586
Termination reclasses to decrease operating lease assets	$	(4,133)	$	(4,971)
Termination reclasses to decrease operating lease liabilities	$	(4,382)	$	(5,278)
Termination reclasses to decrease finance lease assets	$	(1,351)	$	(33)
Termination reclasses to decrease finance lease liabilities	$	(87)	$	(40)

Leases

Leases

The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, and warehouses), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company's lease contracts is performed after contemplating all the relevant facts and circumstances in accordance with guidance under ASC 842. Most real estate leases, in particular, include one or more options to renew, with renewal terms that typically extend the lease term in increments from one to five years. The Company's leases do not have any significant residual value guarantees or restrictive covenants.

As the implicit rate in the Company's leases is normally not readily determinable, the Company generally calculates its lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years.

The Company completed the acquisition of Metal Packaging on January 26, 2022. The acquisition included both operating and finance lease assets and liabilities. The acquired operating lease liabilities of $33,910 had a weighted average remaining lease maturity term and discount rate of 11.0 years and 2.8%, respectively, and the acquired finance

lease liabilities of $46,687 had a weighted average remaining lease maturity term and discount rate of 3.8 years and 7.5%, respectively, as of the date of the acquisition.

The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at October 2, 2022 and December 31, 2021:

Classification	Balance Sheet Location	October 2, 2022		December 31, 2021
Lease Assets
Operating lease assets	Right of Use Asset - Operating Leases	$	296,838	$	268,390
Finance lease assets	Other Assets	103,540		55,826
Total lease assets		$	400,378	$	324,216
Lease Liabilities
Current operating lease liabilities	Accrued expenses and other	$	49,606	$	45,305
Current finance lease liabilities	Notes payable and current portion of debt	16,115		6,952
Total current lease liabilities		$	65,721	$	52,257
Noncurrent operating lease liabilities	Noncurrent Operating Lease Liabilities	$	253,466	$	234,167
Noncurrent finance lease liabilities	Long-term Debt, Net of Current Portion	86,912		53,330
Total noncurrent lease liabilities		$	340,378	$	287,497
Total lease liabilities		$	406,099	$	339,754

Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term.

The following table sets forth the components of the Company’s total lease cost for the three- and nine-month periods ended October 2, 2022 and October 3, 2021:

		Three Months Ended				Nine Months Ended
Lease Cost		October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Operating lease cost	(a)	$	12,863	$	11,623	$	38,679	$	36,720
Finance lease cost:
Amortization of lease asset	(a)	3,133		1,476		9,122		4,133
Interest on lease liabilities	(b)	1,270		367		3,517		997
Variable lease cost	(a) (c)	7,894		6,796		22,416		19,569
Impairment charges	(d)	61		—		293		—
Total lease cost		$	25,221	$	20,262	$	74,027	$	61,419

(a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively.

(b) Included in interest expense.

(c) Also includes short term lease costs, which are deemed immaterial.

(d) Impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s

Consolidated Statements of Income. See Note 5 for more information.

The following table sets forth certain lease-related information for the nine-month periods ended October 2, 2022 and October 3, 2021:

	Nine Months Ended
	October 2, 2022		October 3, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$	39,405	$	38,757
Operating cash flows used by finance leases	$	3,517	$	997
Financing cash flows used by finance leases	$	9,181	$	3,375
Noncash investing and financing activities:
Leased assets obtained in exchange for new operating lease liabilities	$	31,048	$	12,230
Leased assets obtained in exchange for new finance lease liabilities	$	8,224	$	7,071
Modification to leased assets for increase in operating lease liabilities	$	2,258	$	12,059
Modification to leased assets for (decrease)/increase in finance lease liabilities	$	(642)	$	9,586
Termination reclasses to decrease operating lease assets	$	(4,133)	$	(4,971)
Termination reclasses to decrease operating lease liabilities	$	(4,382)	$	(5,278)
Termination reclasses to decrease finance lease assets	$	(1,351)	$	(33)
Termination reclasses to decrease finance lease liabilities	$	(87)	$	(40)

XML

Revenue Recognition

9 Months Ended

Oct. 02, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The Company records revenue when control is transferred to the customer, which is either upon shipment or over time in cases where the Company is entitled to payment with margin for products produced that are customer specific without alternative use. The Company recognizes over time revenue under the input method as goods are produced. Revenue that is recognized at a point in time is recognized when the customer obtains control of the goods. Customers obtain control either when goods are delivered to the customer facility, if the Company is responsible for arranging transportation, or when picked up by the customer's designated carrier. The Company commonly enters into Master Supply Arrangements with customers to provide goods and/or services over specific time periods. Customers submit purchase orders with quantities and prices to create a contract for accounting purposes. Shipping and handling expenses are included in “Cost of Sales,” and freight charged to customers is included in “Net Sales” in the Company's Condensed Consolidated Statements of Income.

The Company has rebate agreements with certain customers. These rebates are recorded as reductions of revenue and are accrued using sales data and rebate percentages specific to each customer agreement. Accrued customer rebates are included in “Accrued expenses and other” in the Company’s Condensed Consolidated Balance Sheets.

Payment terms under the Company's sales arrangements are short term, generally no longer than 120 days. The Company does provide prompt payment discounts to certain customers if invoices are paid within a predetermined period. Prompt payment discounts are treated as a reduction of revenue and are determinable within a short time period following the sale.

The following tables set forth the effects of contract assets and liabilities from contracts with customers. Contract assets and liabilities are reported in “Other receivables” and “Accrued expenses and other,” respectively, on the Company’s Condensed Consolidated Balance Sheets.

	October 2, 2022		December 31, 2021
Contract Assets	$	67,254	$	51,106
Contract Liabilities	$	(28,427)	$	(18,993)

Significant changes in the contract assets and liabilities balances during the nine-month period ended October 2, 2022 and the year ended December 31, 2021 were as follows:

	October 2, 2022				December 31, 2021
	Contract Asset		Contract Liability		Contract Asset		Contract Liability
Beginning Balance	$	51,106	$	(18,993)	$	48,390	$	(16,687)
Acquired as part of a business combination	8,107		(5,588)		—		—
Revenue deferred or rebates accrued	—		(47,303)		—		(36,527)
Recognized as revenue			14,430				7,238
Rebates paid to customers	—		29,027		—		26,983
Increases due to rights to consideration for customer specific goods produced, but not billed during the period	67,254		—		51,106		—
Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combinations	(59,213)		—		(48,390)		—
Ending Balance	$	67,254	$	(28,427)	$	51,106	$	(18,993)

Contract assets and liabilities are generally short in duration given the nature of products produced by the Company. Contract assets represent goods produced without alternative use for which the Company is entitled to payment with margin prior to shipment. Upon shipment, the Company is entitled to bill the customer, and therefore amounts included in contract assets will be reduced with the recording of an account receivable as they represent an unconditional right to payment. Contract liabilities represent revenue deferred due to pricing mechanisms utilized by the Company in certain multi-year arrangements, volume rebates, and payments received in advance. For multi-year arrangements with pricing

mechanisms, the Company will generally defer revenue during the first half of the arrangement and will release the deferral over the back half of the contract term. The Company’s reportable segments are aligned by product nature as disclosed in Note 15.

The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended October 2, 2022 and October 3, 2021. The tables also include a reconciliation of disaggregated revenue with reportable segments.

Three-month period ended October 2, 2022	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	837,048	$	405,382	$	165,476	$	1,407,906
Europe	101,665		99,804		19,811		221,280
Canada	30,154		28,471		—		58,625
Asia	25,492		65,475		185		91,152
Other	36,190		62,320		12,743		111,253
Total	$	1,030,549	$	661,452	$	198,215	$	1,890,216

Three-month period ended October 3, 2021	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	408,295	$	370,659	$	145,029	$	923,983
Europe	109,566		99,573		24,033		233,172
Canada	31,612		24,187		—		55,799
Asia	20,728		81,097		393		102,218
Other	28,768		59,714		11,539		100,021
Total	$	598,969	$	635,230	$	180,994	$	1,415,193

The following tables set forth information about revenue disaggregated by primary geographic regions for the nine-month periods ended October 2, 2022 and October 3, 2021. The tables also include a reconciliation of disaggregated revenue with reportable segments.

Nine-month period ended October 2, 2022	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	2,282,559	$	1,259,348	$	493,136	$	4,035,043
Europe	331,745		334,007		66,500		732,252
Canada	89,342		84,952		—		174,294
Asia	74,533		215,896		748		291,177
Other	110,451		193,778		37,535		341,764
Total	$	2,888,630	$	2,087,981	$	597,919	$	5,574,530

Nine-month period ended October 3, 2021	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	1,219,666	$	1,042,249	$	461,996	$	2,723,911
Europe	334,995		300,495		67,371		702,861
Canada	87,948		69,218		—		157,166
Asia	60,256		232,657		914		293,827
Other	76,660		164,540		32,286		273,486
Total	$	1,779,525	$	1,809,159	$	562,567	$	4,151,251

XML

Segment Reporting

9 Months Ended

Oct. 02, 2022

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other.

The Consumer Packaging segment primarily serves prepared and fresh food markets along with other packaging for consumer products. The products produced and sold within the Consumer Packaging segment are generally used to package a variety of consumer products and consist primarily of round and shaped rigid paper containers; steel tinplate cans and aerosol containers; thermoformed plastic trays and containers; and flexible packaging. Total assets of the Consumer Packaging segment increased by $1,661,573 upon the acquisition of Metal Packaging on January 26, 2022.

The Industrial Paper Packaging segment serves customers who use its products to package their goods for transport, storage or sale or to produce similar fiber-based products. The primary products produced and sold within this segment include fiber-based tubes, cones, and cores; fiber-based protective packaging and components; reels; and recycled paperboard.

Businesses grouped as All Other include healthcare packaging, protective and retail security packaging and industrial plastic products. These businesses include the following products and services: thermoformed rigid plastic trays and devices; custom-engineered molded foam protective packaging and components; temperature-assured packaging; injection molded and extruded containers, spools and parts; retail security packaging, including printed backer cards, thermoformed blisters and heat-sealing equipment; and paper amenities. Prior to the divestiture of the Company’s U.S. display and packaging business on April 4, 2021, this business, which included point-of-purchase displays, fulfillment operations, and contract packaging, was reported in All Other.

The following table sets forth net sales, intersegment sales and operating profit for the Company’s reportable segments and All Other. “Segment operating profit” is defined as the segment’s portion of “Operating profit” excluding restructuring and asset impairment charges, acquisition expenses, amortization of acquisition intangibles, changes in last-in, first-out (“LIFO”) inventory reserves, losses from the early extinguishment of debt, interest income and expense, income taxes or certain other items, if any, the exclusion of which the Company believes improves comparability and analysis of the financial performance of the business. General corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and All Other. Effective January 1, 2022, the Company changed its measure of segment operating profit to exclude amortization of acquisition intangibles. Accordingly, the prior year’s segment operating profit has been revised to conform with the current presentation for comparability.

SEGMENT FINANCIAL INFORMATION 

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Net sales:
Consumer Packaging	$	1,030,549	$	598,969	$	2,888,630	$	1,779,525
Industrial Paper Packaging	661,452		635,230		2,087,981		1,809,159
All Other	198,215		180,994		597,919		562,567
Net sales	$	1,890,216	$	1,415,193	$	5,574,530	$	4,151,251
Intersegment sales:
Consumer Packaging	$	1,663	$	1,608	$	5,189	$	4,460
Industrial Paper Packaging	33,936		27,975		101,072		82,571
All Other	2,532		2,318		7,755		7,483
Intersegment sales	$	38,131	$	31,901	$	114,016	$	94,514
Operating profit:
Segment operating profit:
Consumer Packaging	$	127,859	$	66,341	$	440,889	$	212,997
Industrial Paper Packaging	81,859		55,451		248,721		167,568
All Other	15,373		12,895		46,426		47,259
Segment operating profit	225,091		134,687		736,036		427,824
Restructuring/Asset impairment charges	(20,652)		(3,488)		(43,357)		(8,889)
Amortization of acquisition intangibles	(20,690)		(12,257)		(60,361)		(37,117)
Other non-base (charges)/income, net	(1,807)		7,570		(83,838)		294
Operating profit	181,942		126,512		548,480		382,112

XML

Commitments and Contingencies

9 Months Ended

Oct. 02, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Pursuant to U.S. GAAP, accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and that the amounts are reasonably estimable. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings from a variety of sources. Some of these exposures, as discussed below, have the potential to be material.

Environmental Matters

The Company is subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which it operates.

Spartanburg

In connection with its acquisition of Tegrant in November 2011, the Company identified potential environmental contamination at a site in Spartanburg, South Carolina. Since the acquisition, the Company has spent a total of $1,943 on remediation of the Spartanburg site. At October 2, 2022 and December 31, 2021, the Company's accrual for environmental contingencies related to the Spartanburg site totaled $5,458 and $5,555, respectively.

The Company cannot currently estimate its potential liability, damages or range of potential loss, if any, beyond the amounts accrued with respect to this exposure. However, the Company does not believe that the resolution of this matter has a reasonable possibility of having a material adverse effect on the Company's financial statements.

Other environmental matters

The Company has been named as a potentially responsible party at several other environmentally contaminated sites. All of the sites are also the responsibility of other parties. The potential remediation liabilities are shared with such other parties, and, in most cases, the Company’s share, if any, cannot be reasonably estimated at the current time. However, the Company does not believe that the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company's financial statements. At October 2, 2022 and December 31, 2021, the Company's accrual for these other sites totaled $1,604 and $1,825, respectively.

Summary

As of October 2, 2022 and December 31, 2021, the Company (and its subsidiaries) had accrued $7,062 and $7,380, respectively, related to environmental contingencies. These accruals are included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets.

Other Legal Matters

In addition to those matters described above, the Company is subject to other various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters could differ from management’s expectations, the Company does not believe the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s financial statements.

XML

New Accounting Pronouncements (Policies)

9 Months Ended

Oct. 02, 2022

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04 “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” The amendments in this update require that a buyer in a supplier finance program disclose qualitative and quantitative information about its supplier finance programs in each annual reporting period, including a description of key payment terms, and a rollforward of the outstanding obligation as of the end of the annual period. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company does not plan to elect early adoption of this update and does not expect this pronouncement to materially affect its consolidated financial statements.

In March 2022, the FASB issued ASU 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The amendments in this update eliminate the accounting guidance for troubled debt restructurings while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendments in this update also require that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases. The Company does not expect this pronouncement to materially affect its consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” Under current accounting standards, contract assets and contract liabilities acquired in a business combination are to be recorded at fair value using the ASC 805 measurement principle. ASU 2021-08 requires the acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606: Revenue from Contracts with Customers as if the acquirer had originated the contracts rather than at fair value. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company elected to early adopt ASU 2021-08 on a prospective basis as of January 1, 2022. The election to use practical expedients allowed under ASU 2021-08 will be applied on an acquisition-by-acquisition basis. There was no impact to the Company’s consolidated financial statements as of the adoption date.

During the nine-month period ended October 2, 2022, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a material impact on the Company’s financial statements. Further, at October 2, 2022, there are no other pronouncements pending adoption that are expected to have a material impact on the Company’s consolidated financial statements.

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:

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

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.

XML

Acquisitions and Divestitures (Tables)

9 Months Ended

Oct. 02, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Preliminary Fair Value Of Assets Acquired And Measurement Period Adjustments

The Company's initial preliminary fair values of the assets acquired and the liabilities assumed in the Metal Packaging acquisition, as well as revised preliminary fair values reflecting adjustments made during the measurement period, are as follows:

	Initial Allocation		Measurement Period Adjustments		Revised Allocation
Trade accounts receivable	$	113,850	$	—	$	113,850
Other receivables	14,569		—		14,569
Inventories	190,070		556		190,626
Prepaid expenses	44,530		—		44,530
Property, plant and equipment	333,496		(1,363)		332,133
Right of use asset - operating leases	38,000		—		38,000
Other intangible assets	498,000		—		498,000
Goodwill	366,098		(9,187)		356,911
Other net tangible assets	48,069		(196)		47,873
Payable to suppliers	(105,580)		—		(105,580)
Accrued expenses and other	(30,671)		489		(30,182)
Notes payable and current portion of long-term debt	(46,463)		—		(46,463)
Noncurrent operating lease liabilities	(30,448)		—		(30,448)
Long-term debt	(39,543)		—		(39,543)
Deferred income taxes	(52,312)		1,805		(50,507)
Total purchase price, net of cash acquired	$	1,341,665	$	(7,896)	$	1,333,769

Schedule Of Proforma Supplemental Information

The following table presents the unaudited financial results for Metal Packaging for the three-month period ended October 2, 2022 and from the date of acquisition through October 2, 2022:

Supplemental Information (unaudited)	Three Months Ended		January 26 to
Metal Packaging	October 2, 2022		October 2, 2022
Net sales	$	335,468	$	798,018
Net income	$	16,769	$	61,216

The following table presents the Company’s estimated unaudited pro forma consolidated results for the three- and nine-month periods ended October 2, 2022 and October 3, 2021, assuming the acquisition of Metal Packaging had occurred on January 1, 2021. This unaudited pro forma information is presented for informational purposes only and does not purport to represent the results of operations that would have been achieved if the acquisition had been completed at the beginning of 2021, nor is it necessarily indicative of future consolidated results.

Pro Forma Supplemental Information (unaudited)	Three Months Ended				Nine Months Ended
Consolidated	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Net sales	$	1,890,216	$	1,643,726	$	5,624,118	$	4,767,306
Net income/(loss) attributable to Sonoco	$	123,047	$	105,578	$	428,287	$	(215,045)

XML

Shareholders' Equity (Tables)

9 Months Ended

Oct. 02, 2022

Equity [Abstract]

Schedule of Earnings (Loss) Per Share

The following table sets forth the computation of basic and diluted earnings/(loss) per share:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Numerator:
Net income/(loss) attributable to Sonoco	$	122,229	$	111,140	$	369,234	$	(150,634)
Denominator:
Weighted average common shares outstanding:
Basic	98,013		98,955		97,978		100,039
Dilutive effect of stock-based compensation	749		470		691		—
Diluted	98,762		99,425		98,669		100,039
Net income/(loss) attributable to Sonoco per common share:
Basic	$	1.25	$	1.12	$	3.77	$	(1.51)
Diluted	$	1.24	$	1.12	$	3.74	$	(1.51)
Cash dividends	$	0.49	$	0.45	$	1.43	$	1.35

Schedule Of Antidilutive Securities Excluded From Computation Of Earnings Per Share

The average numbers of SARs that were anti-dilutive and, therefore, not included in the computation of diluted earnings per share during the three- and nine-month periods ended October 2, 2022 and October 3, 2021 were as follows (in thousands):

	Three Months Ended		Nine Months Ended
	October 2, 2022	October 3, 2021	October 2, 2022	October 3, 2021
Anti-dilutive stock appreciation rights	366	—	380	142

The following table sets forth the potentially dilutive securities excluded from the computation of diluted net loss per share during the nine-month period ended October 3, 2021:

	Nine Months Ended
	October 3, 2021
Dilutive securities excluded due to reported loss	469

XML

Restructuring and Asset Impairments (Tables)

9 Months Ended

Oct. 02, 2022

Restructuring and Related Activities [Abstract]

Summary of Restructuring and Restructuring-Related Asset Impairment Expenses by Type Incurred and by Reportable Segment

Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Restructuring and restructuring-related asset impairment charges	$	20,652	$	3,204	$	33,262	$	4,048
Other asset impairments	—		284		10,095		4,841
Restructuring/Asset Impairment Charges	$	20,652	$	3,488	$	43,357	$	8,889

The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Severance and Termination Benefits	$	9,265	$	3,726	$	13,578	$	7,592
Asset Impairments/(Gains from Disposal of Assets)	3,301		(1,722)		4,533		(8,207)
Other Costs	8,086		1,200		15,151		4,663
Restructuring and restructuring-related asset impairment charges	$	20,652	$	3,204	$	33,262	$	4,048

The table below sets forth restructuring and restructuring-related asset impairment charges by reportable segment:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Consumer Packaging	$	4,350	$	2,450	$	8,529	$	3,708
Industrial Paper Packaging	7,674		(1,888)		10,029		(4,827)
All Other	18		555		(399)		3,075
Corporate	8,610		2,087		15,103		2,092
Restructuring and restructuring-related asset impairment charges	$	20,652	$	3,204	$	33,262	$	4,048

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:

	Severance and Termination Benefits		Asset Impairments/ Disposal of Assets		Other Costs		Total
Accrual Activity
Liability at December 31, 2021	$	10,917	$	—	$	1,873	$	12,790
2022 charges	13,578		4,533		15,151		33,262
Cash (payments)/receipts	(9,966)		4,751		(13,983)		(19,198)
Asset writedowns/disposals	—		(9,284)		—		(9,284)
Foreign currency translation	(229)		—		(41)		(270)
Liability at October 2, 2022	$	14,300	$	—	$	3,000	$	17,300

XML

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Oct. 02, 2022

Equity [Abstract]

Summary of Components of Accumulated Other Comprehensive Loss

The following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the nine-month period ended October 2, 2022 and October 3, 2021:

	Foreign Currency Items		Defined Benefit Pension Items		Cash Flow Hedges		Accumulated Other Comprehensive Loss
Balance at December 31, 2021	$	(269,076)	$	(91,397)	$	1,048	$	(359,425)
Other comprehensive (loss)/income before reclassifications	(155,179)		(3,948)		4,136		(154,991)
Amounts reclassified from accumulated other comprehensive loss to net income	3,747		3,072		(4,286)		2,533
Amounts reclassified from accumulated other comprehensive loss to fixed assets	—		—		(642)		(642)
Other comprehensive (loss)/income	(151,432)		(876)		(792)		(153,100)
Balance at October 2, 2022	$	(420,508)	$	(92,273)	$	256	$	(512,525)
Balance at December 31, 2020	$	(194,024)	$	(562,747)	$	(71)	$	(756,842)
Other comprehensive (loss)/income before reclassifications	(57,261)		11,302		7,804		(38,155)
Amounts reclassified from accumulated other comprehensive loss to net loss	—		418,521		(2,403)		416,118
Amounts reclassified from accumulated other comprehensive loss to fixed assets	—		—		(31)		(31)
Other comprehensive (loss)/income	(57,261)		429,823		5,370		377,932
Balance at October 3, 2021	$	(251,285)	$	(132,924)	$	5,299	$	(378,910)

Summary of Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss

The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three- and nine-month periods ended October 2, 2022 and October 3, 2021:

	Amount Reclassified from Accumulated Other Comprehensive Loss
	Three Months Ended				Nine Months Ended
Details about Accumulated Other Comprehensive Loss Components	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021		Affected Line Item in the Condensed Consolidated Statements of Income
Foreign currency items
Loss on Russia restructuring(a)	$	—	—		$	(3,747)	—		Restructuring/Asset impairment charges
Gains/(losses) on cash flow hedges
Foreign exchange contracts	559		937		2,425		2,766		Net sales
Foreign exchange contracts	(433)		(711)		(2,139)		(2,129)		Cost of sales
Commodity contracts	2,434		2,051		5,371		2,626		Cost of sales
	2,560		2,277		5,657		3,263		Income/(Loss) before income taxes
Income tax impact	(473)		(607)		(1,371)		(860)		Provision for/(Benefit from) income taxes
	2,087		1,670		4,286		2,403		Net income/(loss)
Defined benefit pension items
Effect of settlement loss(b)	—		(21)		(430)		(547,652)		Non-operating pension costs
Amortization of defined    benefit pension items(b)	(1,229)		(1,640)		(3,655)		(14,973)		Non-operating pension costs
	(1,229)		(1,661)		(4,085)		(562,625)		Income/(Loss) before income taxes
Income tax impact	313		382		1,013		144,104		Provision for/(Benefit from) income taxes
	(916)		(1,279)		(3,072)		(418,521)		Net income/(loss)
Total reclassifications for the period	$	1,171	$	391	$	(2,533)	$	(416,118)	Net income/(loss)

(a) See Note 5 for additional details.

(b) See Note 11 for additional details.

Summary of Before and After Tax Amounts for Comprehensive Income (Loss) Components

The following table summarizes the before and after tax amounts for the various components of other comprehensive (loss)/income for the three-month periods ended October 2, 2022 and October 3, 2021:

		Three months ended October 2, 2022							Three months ended October 3, 2021
		Before Tax Amount		Tax (Expense) Benefit		After Tax Amount			Before Tax Amount		Tax (Expense) Benefit		After Tax Amount
Foreign currency items:
	Other comprehensive loss before reclassifications	$	(81,457)	$	—	$	(81,457)		$	(37,077)	$	—	$	(37,077)
	Amounts reclassified from accumulated other    comprehensive loss to net income(a)	—		—		—			—		—		—
	Net other comprehensive loss from foreign currency items	(81,457)		—		(81,457)		—	(37,077)		—		(37,077)
Defined benefit pension items:
	Other comprehensive (loss)/income before reclassifications	(74)		19		(55)			559		(145)		414
	Amounts reclassified from accumulated other    comprehensive loss to net income(b)	1,229		(313)		916			1,661		(382)		1,279
	Net other comprehensive income/(loss) from defined benefit pension items	1,155		(294)		861			2,220		(527)		1,693
Gains and losses on cash flow hedges:
	Other comprehensive income/(loss) before reclassifications	1,336		(247)		1,089			3,525		(940)		2,585
	Amounts reclassified from accumulated other    comprehensive loss to net income(c)	(2,560)		473		(2,087)			(2,277)		607		(1,670)
	Amounts reclassified from accumulated other comprehensive loss to fixed assets	(312)		58		(254)			20		(5)		15
	Net other comprehensive (loss)/ income from cash flow hedges	(1,536)		284		(1,252)			1,268		(338)		930
Other comprehensive (loss)/income		$	(81,838)	$	(10)	$	(81,848)		$	(33,589)	$	(865)	$	(34,454)

(a) See Note 5 for additional details.

(b) See Note 11 for additional details.

(c) See Note 9 for additional details.

The following table summarizes the before and after tax amounts for the various components of other comprehensive (loss)/income for the nine-month periods ended October 2, 2022 and October 3, 2021:

		Nine-month period ended October 2, 2022						Nine-month period ended October 3, 2021
		Before Tax Amount		Tax (Expense) Benefit		After Tax Amount		Before Tax Amount		Tax (Expense) Benefit		After Tax Amount
Foreign currency items:
	Other comprehensive loss before reclassifications	$	(155,179)	$	—	$	(155,179)	$	(57,261)	$	—	$	(57,261)
	Amounts reclassified from accumulated other    comprehensive loss to net income/(loss)(a)	3,747		—		3,747		—		—		—
	Net other comprehensive loss from foreign currency items	(151,432)		—		(151,432)		(57,261)		—		(57,261)
Defined benefit pension items:
	Other comprehensive (loss)/income before reclassifications	(5,257)		1,309		(3,948)		14,923		(3,621)		11,302
	Amounts reclassified from accumulated other    comprehensive loss to net income/(loss)(b)	4,085		(1,013)		3,072		562,625		(144,104)		418,521
	Net other comprehensive (loss)/income from defined benefit pension items	(1,172)		296		(876)		577,548		(147,725)		429,823
Gains and losses on cash flow hedges:
	Other comprehensive income/(loss) before reclassifications	5,607		(1,471)		4,136		10,536		(2,732)		7,804
	Amounts reclassified from accumulated other    comprehensive loss to net income/(loss)(c)	(5,657)		1,371		(4,286)		(3,263)		860		(2,403)
	Amounts reclassified from accumulated other comprehensive loss to fixed assets	(864)		222		(642)		(42)		11		(31)
	Net other comprehensive (loss)/income from cash flow hedges	(914)		122		(792)		7,231		(1,861)		5,370
Other comprehensive (loss)/ income		$	(153,518)	$	418	$	(153,100)	$	527,518	$	(149,586)	$	377,932

(a) See Note 5 for additional details.

(b) See Note 11 for additional details.

(c) See Note 9 for additional details.

XML

Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Oct. 02, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of the Changes in Goodwill

A summary of the changes in goodwill for the nine-month period ended October 2, 2022 is as follows: 

	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Goodwill at December 31, 2021	$	572,416	$	367,780	$	384,305	$	1,324,501
2022 Acquisitions	366,098		5,414		—		371,512
Foreign currency translation	(22,001)		(17,584)		(5,293)		(44,878)
Measurement period adjustments	(9,187)		—		—		(9,187)
Goodwill at October 2, 2022	$	907,326	$	355,610	$	379,012	$	1,641,948

Summary of Other Intangible Assets

A summary of other intangible assets as of October 2, 2022 and December 31, 2021 is as follows:    

	October 2, 2022		December 31, 2021
Other Intangible Assets, gross:
Patents	$	29,296	$	29,315
Customer lists	1,040,346		592,195
Trade names	31,641		32,043
Proprietary technology	57,608		22,846
Other	2,743		2,807
Total Other Intangible Assets, gross	$	1,161,634	$	679,206
Accumulated Amortization:
Patents	$	(17,497)	$	(16,275)
Customer lists	(392,932)		(347,274)
Trade names	(15,397)		(14,106)
Proprietary technology	(24,038)		(21,394)
Other	(2,047)		(2,014)
Total Accumulated Amortization	$	(451,911)	$	(401,063)
Other Intangible Assets, net	$	709,723	$	278,143

XML

Debt (Tables)

9 Months Ended

Oct. 02, 2022

Debt Disclosure [Abstract]

Schedule of Debt

Details of the Company's debt at October 2, 2022 and December 31, 2021 are as follows:

	October 2, 2022		December 31, 2021
Commercial paper	$	285,000	$	349,000
Syndicated term loan due February 2025	299,602		—
1.800% notes due February 2025	398,168		—
2.250% notes due February 2027	297,780		—
2.850% notes due February 2032	495,132		—
3.125% notes due May 2030	595,771		595,342
5.750% notes due November 2040	536,206		536,182
Other foreign denominated debt	32,478		55,432
Finance lease obligations	103,027		60,282
Other debt	96,866		14,425
Total debt	$	3,140,030	$	1,610,663
Less current portion and short-term notes	416,929		411,557
Long-term debt	$	2,723,101	$	1,199,106

On January 21, 2022, the Company completed a registered public offering of green bonds with an aggregate principal amount of $1,200,000. These unsecured notes (the “Notes”) consisted of the following:

	Principal Amount		Issuance Costs and Discounts		Net Proceeds		Interest Rate	Maturity
2025 Notes	$	400,000	$	(2,356)	$	397,644	1.800%	February 1, 2025
2027 Notes	300,000		(2,565)		297,435		2.250%	February 1, 2027
2032 Notes	500,000		(5,220)		494,780		2.850%	February 1, 2032
Total	$	1,200,000	$	(10,141)	$	1,189,859

Schedule of Debt Repurchased

Upon expiration of the tender offer on May 25, 2021, the Company repurchased 10.53% of its outstanding 5.750% notes for a total cash cost of $81,961, as shown below:

	Principal Amount Tendered		Premium and Other Amounts Paid		Total Cash Paid
5.750% notes due November 2040	$	63,206	$	18,755	$	81,961

XML

Financial Instruments and Derivatives (Tables)

9 Months Ended

Oct. 02, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Carrying Amounts and Fair Values of Financial Instruments

The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value.

	October 2, 2022				December 31, 2021
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, net of current portion	$	2,723,101	$	2,444,965	$	1,199,106	$	1,434,711

Summary of Net Positions of Foreign Contracts

The net positions of these contracts at October 2, 2022 were as follows (in thousands):

Currency	Action	Quantity
Colombian peso	purchase	7,354,331
Mexican peso	purchase	123,095
Polish zloty	purchase	22,382
Czech koruna	purchase	16,675
Euro	purchase	9,989
Turkish lira	purchase	5,086
Canadian dollar	purchase	3,798
British pound	purchase	819

Summary of Net Positions of Other Derivatives Contracts

The net currency positions of these non-designated contracts at October 2, 2022, were as follows (in thousands):

Currency	Action	Quantity
Colombian peso	purchase	24,748,486
Indonesian rupiah	purchase	8,083,663
Mexican peso	purchase	419,703
Turkish lira	purchase	44,125
Canadian dollar	purchase	9,568
Thai baht	sell	(11,143)

Summary of Location and Fair Values of Derivative Instruments

The following table sets forth the location and fair values of the Company’s derivative instruments at October 2, 2022 and December 31, 2021:

Description	Balance Sheet Location	October 2, 2022		December 31, 2021
Derivatives designated as hedging instruments:
Commodity Contracts	Prepaid expenses	$	1,905	$	1,599
Commodity Contracts	Other assets	$	23	$	—
Commodity Contracts	Accrued expenses and other	$	(25)	$	(108)
Commodity Contracts	Other liabilities	$	(11)	$	—
Foreign Exchange Contracts	Prepaid expenses	$	3,098	$	848
Foreign Exchange Contracts	Accrued expenses and other	$	(4,610)	$	(969)
Derivatives not designated as hedging instruments:
Commodity Contracts	Prepaid expenses	$	5,069	$	1,815
Commodity Contracts	Other assets	$	689	$	—
Commodity Contracts	Accrued expenses and other	$	(2,497)	$	(1,132)
Commodity Contracts	Other liabilities	$	(812)	$	—
Foreign Exchange Contracts	Prepaid expenses	$	237	$	135
Foreign Exchange Contracts	Accrued expenses and other	$	(317)	$	(176)
Interest Rate Lock Contract	Accrued expenses and other	$	—	$	(550)

Summary of Effect of Derivative Instruments on Financial Performance

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three-month periods ended October 2, 2022 and October 3, 2021, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures:

Description	Amount of Gain or (Loss) Recognized in OCI on Derivatives		Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income
Derivatives in Cash Flow Hedging Relationships:
Three-month period ended October 2, 2022
Foreign Exchange Contracts	$	(290)	Net sales	$	559
			Cost of sales	$	(433)
Commodity Contracts	$	1,626	Cost of sales	$	2,434
Three-month period ended October 3, 2021
Foreign Exchange Contracts	$	(407)	Net sales	$	937
			Cost of sales	$	(711)
Commodity Contracts	$	4,200	Cost of sales	$	2,051

 

Description	Gain or (Loss) Recognized		Location of Gain or (Loss) Recognized in Income Statement
Derivatives not Designated as Hedging Instruments:
Three-month period ended October 2, 2022
Commodity Contracts	$	2,574	Cost of sales
Foreign Exchange Contracts	$	(484)	Selling, general and administrative
Three-month period ended October 3, 2021
Commodity Contracts	$	2,861	Cost of sales
Foreign Exchange Contracts	$	(675)	Selling, general and administrative

	Three-month period ended October 2, 2022				Three-month period ended October 3, 2021
Description	Revenue		Cost of sales		Revenue		Cost of sales
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income	$	559	$	2,001	$	937	$	1,340
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	$	559	$	(433)	$	937	$	(711)
Commodity contracts:
Amount of gain reclassified from accumulated other comprehensive loss into net income	$	—	$	2,434	$	—	$	2,051

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the nine months ended October 2, 2022 and October 3, 2021, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures:

Description	Amount of Gain or (Loss) Recognized in OCI on Derivatives		Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income
Derivatives in Cash Flow Hedging Relationships:
Nine-month period ended October 2, 2022
Foreign Exchange Contracts	$	(202)	Net sales	$	2,425
			Cost of sales	$	(2,139)
Commodity Contracts	$	5,809	Cost of sales	$	5,371
Nine-month period ended October 3, 2021
Foreign Exchange Contracts	$	156	Net sales	$	2,766
			Cost of sales	$	(2,129)
Commodity Contracts	$	10,801	Cost of sales	$	2,626

 

Description	Gain or (Loss) Recognized		Location of Gain or (Loss) Recognized in Income Statement
Derivatives not Designated as Hedging Instruments:
Nine-month period ended October 2, 2022
Commodity Contracts	$	10,072	Cost of sales
Foreign Exchange Contracts	$	(283)	Selling, general and administrative
Nine-month period ended October 3, 2021
Commodity Contracts	$	3,295	Cost of sales
Foreign Exchange Contracts	$	(906)	Selling, general and administrative

	Nine-month period ended October 2, 2022				Nine-month period ended October 3, 2021
Description	Revenue		Cost of sales		Revenue		Cost of sales
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income	$	2,425	$	3,232	$	2,766	$	497
Gain or (loss) on cash flow hedging relationships:
Foreign exchange contracts:
Amount of gain/(loss) reclassified from accumulated other comprehensive income into net income	$	2,425	$	(2,139)	$	2,766	$	(2,129)
Commodity contracts:
Amount of gain reclassified from accumulated other comprehensive income into net income	$	—	$	5,371	$	—	$	2,626

XML

Fair Value Measurements (Tables)

9 Months Ended

Oct. 02, 2022

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured on Recurring Basis

The following table sets forth information regarding the Company’s financial assets and financial liabilities, excluding retirement and postretirement plan assets, measured at fair value on a recurring basis:

Description	October 2, 2022		Assets measured at NAV		Level 1		Level 2		Level 3
Hedge derivatives, net:
Commodity contracts	$	1,892	$	—	$	—	$	1,892	$	—
Foreign exchange contracts	$	(1,512)	$	—	$	—	$	(1,512)	$	—
Non-hedge derivatives, net:
Commodity contracts	$	2,449	$	—	$	—	$	2,449	$	—
Foreign exchange contracts	$	(80)	$	—	$	—	$	(80)	$	—
Description	December 31, 2021		Assets measured at NAV		Level 1		Level 2		Level 3
Hedge derivatives, net:
Commodity contracts	$	1,491	$	—	$	—	$	1,491	$	—
Foreign exchange contracts	$	(121)	$	—	$	—	$	(121)	$	—
Non-hedge derivatives, net:
Commodity contracts	$	683	$	—	$	—	$	683	$	—
Foreign exchange contracts	$	(41)	$	—	$	—	$	(41)	$	—
Interest rate lock contract	$	(550)	$	—	$	—	$	(550)	$	—

XML

Employee Benefit Plans (Tables)

9 Months Ended

Oct. 02, 2022

Retirement Benefits [Abstract]

Summary of Components of Net Periodic Benefit Cost/(Income)

The components of net periodic benefit cost/(income) include the following:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Retirement Plans
Service cost	$	796	$	968	$	2,459	$	2,949
Interest cost	2,593		2,287		7,974		22,051
Expected return on plan assets	(2,527)		(3,361)		(7,670)		(21,672)
Amortization of prior service cost	220		226		673		687
Amortization of net actuarial loss	1,179		1,600		3,495		14,849
Effect of settlement loss	—		21		430		547,652
Net periodic benefit cost	$	2,261	$	1,741	$	7,361	$	566,516
Retiree Health and Life Insurance Plans
Service cost	$	80	$	93	$	241	$	282
Interest cost	64		49		194		149
Expected return on plan assets	(110)		(111)		(332)		(335)
Amortization of net actuarial gain	(170)		(186)		(513)		(563)
Net periodic benefit income	$	(136)	$	(155)	$	(410)	$	(467)

XML

Leases (Tables)

9 Months Ended

Oct. 02, 2022

Leases [Abstract]

Summary of Balance Sheet Location and Values of Company's Lease Assets and Lease Liabilities

The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at October 2, 2022 and December 31, 2021:

Classification	Balance Sheet Location	October 2, 2022		December 31, 2021
Lease Assets
Operating lease assets	Right of Use Asset - Operating Leases	$	296,838	$	268,390
Finance lease assets	Other Assets	103,540		55,826
Total lease assets		$	400,378	$	324,216
Lease Liabilities
Current operating lease liabilities	Accrued expenses and other	$	49,606	$	45,305
Current finance lease liabilities	Notes payable and current portion of debt	16,115		6,952
Total current lease liabilities		$	65,721	$	52,257
Noncurrent operating lease liabilities	Noncurrent Operating Lease Liabilities	$	253,466	$	234,167
Noncurrent finance lease liabilities	Long-term Debt, Net of Current Portion	86,912		53,330
Total noncurrent lease liabilities		$	340,378	$	287,497
Total lease liabilities		$	406,099	$	339,754

Summary of Components of Company's Total Lease Costs and Other Lease Related Information

The following table sets forth the components of the Company’s total lease cost for the three- and nine-month periods ended October 2, 2022 and October 3, 2021:

		Three Months Ended				Nine Months Ended
Lease Cost		October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Operating lease cost	(a)	$	12,863	$	11,623	$	38,679	$	36,720
Finance lease cost:
Amortization of lease asset	(a)	3,133		1,476		9,122		4,133
Interest on lease liabilities	(b)	1,270		367		3,517		997
Variable lease cost	(a) (c)	7,894		6,796		22,416		19,569
Impairment charges	(d)	61		—		293		—
Total lease cost		$	25,221	$	20,262	$	74,027	$	61,419

(a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively.

(b) Included in interest expense.

(c) Also includes short term lease costs, which are deemed immaterial.

(d) Impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s

Consolidated Statements of Income. See Note 5 for more information.

Schedule of Weighted Average Remaining Lease Terms, Discounts Rates and Other Lease Information

The following table sets forth certain lease-related information for the nine-month periods ended October 2, 2022 and October 3, 2021:

	Nine Months Ended
	October 2, 2022		October 3, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$	39,405	$	38,757
Operating cash flows used by finance leases	$	3,517	$	997
Financing cash flows used by finance leases	$	9,181	$	3,375
Noncash investing and financing activities:
Leased assets obtained in exchange for new operating lease liabilities	$	31,048	$	12,230
Leased assets obtained in exchange for new finance lease liabilities	$	8,224	$	7,071
Modification to leased assets for increase in operating lease liabilities	$	2,258	$	12,059
Modification to leased assets for (decrease)/increase in finance lease liabilities	$	(642)	$	9,586
Termination reclasses to decrease operating lease assets	$	(4,133)	$	(4,971)
Termination reclasses to decrease operating lease liabilities	$	(4,382)	$	(5,278)
Termination reclasses to decrease finance lease assets	$	(1,351)	$	(33)
Termination reclasses to decrease finance lease liabilities	$	(87)	$	(40)

XML

Revenue Recognition (Tables)

9 Months Ended

Oct. 02, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Receivables, Contracts Assets and Liabilities from Contracts With Customers

The following tables set forth the effects of contract assets and liabilities from contracts with customers. Contract assets and liabilities are reported in “Other receivables” and “Accrued expenses and other,” respectively, on the Company’s Condensed Consolidated Balance Sheets.

	October 2, 2022		December 31, 2021
Contract Assets	$	67,254	$	51,106
Contract Liabilities	$	(28,427)	$	(18,993)

Significant changes in the contract assets and liabilities balances during the nine-month period ended October 2, 2022 and the year ended December 31, 2021 were as follows:

	October 2, 2022				December 31, 2021
	Contract Asset		Contract Liability		Contract Asset		Contract Liability
Beginning Balance	$	51,106	$	(18,993)	$	48,390	$	(16,687)
Acquired as part of a business combination	8,107		(5,588)		—		—
Revenue deferred or rebates accrued	—		(47,303)		—		(36,527)
Recognized as revenue			14,430				7,238
Rebates paid to customers	—		29,027		—		26,983
Increases due to rights to consideration for customer specific goods produced, but not billed during the period	67,254		—		51,106		—
Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combinations	(59,213)		—		(48,390)		—
Ending Balance	$	67,254	$	(28,427)	$	51,106	$	(18,993)

Summary of Disaggregation of Revenue

The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended October 2, 2022 and October 3, 2021. The tables also include a reconciliation of disaggregated revenue with reportable segments.

Three-month period ended October 2, 2022	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	837,048	$	405,382	$	165,476	$	1,407,906
Europe	101,665		99,804		19,811		221,280
Canada	30,154		28,471		—		58,625
Asia	25,492		65,475		185		91,152
Other	36,190		62,320		12,743		111,253
Total	$	1,030,549	$	661,452	$	198,215	$	1,890,216

Three-month period ended October 3, 2021	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	408,295	$	370,659	$	145,029	$	923,983
Europe	109,566		99,573		24,033		233,172
Canada	31,612		24,187		—		55,799
Asia	20,728		81,097		393		102,218
Other	28,768		59,714		11,539		100,021
Total	$	598,969	$	635,230	$	180,994	$	1,415,193

The following tables set forth information about revenue disaggregated by primary geographic regions for the nine-month periods ended October 2, 2022 and October 3, 2021. The tables also include a reconciliation of disaggregated revenue with reportable segments.

Nine-month period ended October 2, 2022	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	2,282,559	$	1,259,348	$	493,136	$	4,035,043
Europe	331,745		334,007		66,500		732,252
Canada	89,342		84,952		—		174,294
Asia	74,533		215,896		748		291,177
Other	110,451		193,778		37,535		341,764
Total	$	2,888,630	$	2,087,981	$	597,919	$	5,574,530

Nine-month period ended October 3, 2021	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	1,219,666	$	1,042,249	$	461,996	$	2,723,911
Europe	334,995		300,495		67,371		702,861
Canada	87,948		69,218		—		157,166
Asia	60,256		232,657		914		293,827
Other	76,660		164,540		32,286		273,486
Total	$	1,779,525	$	1,809,159	$	562,567	$	4,151,251

XML

Segment Reporting (Tables)

9 Months Ended

Oct. 02, 2022

Segment Reporting [Abstract]

Summary of Segment Financial Information

SEGMENT FINANCIAL INFORMATION 

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Net sales:
Consumer Packaging	$	1,030,549	$	598,969	$	2,888,630	$	1,779,525
Industrial Paper Packaging	661,452		635,230		2,087,981		1,809,159
All Other	198,215		180,994		597,919		562,567
Net sales	$	1,890,216	$	1,415,193	$	5,574,530	$	4,151,251
Intersegment sales:
Consumer Packaging	$	1,663	$	1,608	$	5,189	$	4,460
Industrial Paper Packaging	33,936		27,975		101,072		82,571
All Other	2,532		2,318		7,755		7,483
Intersegment sales	$	38,131	$	31,901	$	114,016	$	94,514
Operating profit:
Segment operating profit:
Consumer Packaging	$	127,859	$	66,341	$	440,889	$	212,997
Industrial Paper Packaging	81,859		55,451		248,721		167,568
All Other	15,373		12,895		46,426		47,259
Segment operating profit	225,091		134,687		736,036		427,824
Restructuring/Asset impairment charges	(20,652)		(3,488)		(43,357)		(8,889)
Amortization of acquisition intangibles	(20,690)		(12,257)		(60,361)		(37,117)
Other non-base (charges)/income, net	(1,807)		7,570		(83,838)		294
Operating profit	181,942		126,512		548,480		382,112

XML

Acquisitions and Divestitures - Additional Information (Details) $ in Thousands						3 Months Ended				9 Months Ended
	Sep. 28, 2022 USD ($)	Aug. 31, 2022 USD ($) acquisition	Jan. 26, 2022 USD ($) manufacturing_plant	Sep. 30, 2021 USD ($)	Apr. 05, 2021 USD ($)	Oct. 02, 2022 USD ($)	Jul. 03, 2022 USD ($)	Oct. 03, 2021 USD ($)	Apr. 04, 2021 USD ($) employee facility	Oct. 02, 2022 USD ($)	Oct. 03, 2021 USD ($)
Business Acquisition [Line Items]
Consideration paid, net of cash acquired										$ 1,337,704	$ 3,155
Acquisition and divestiture-related costs						$ 2,022		$ 1,015		62,655	12,503
Gain/(loss) on divestiture of business						0		2,849		0	$ (2,667)
Cost of sales
Business Acquisition [Line Items]
Acquisition and divestiture-related costs						2,022				29,500
Sold | DisplayAndPackagingReportingUnitMember
Business Acquisition [Line Items]
Consideration for disposal of business held for sale									$ 80,000
Approximate number of employees (employee) | employee									450
Number of manufacturing and fulfillment facilities | facility									8
Number of sales and design centers | facility									4
Proceeds from the sale of businesses, net					$ 79,704			1,971
Gain/(loss) on divestiture of business									$ (5,516)
Disposal group, including discontinued operation, consideration, liabilities settled						786				786
Gain (loss) on the sale of business								$ 2,757		(2,759)
Sold | Wilson Thermoforming
Business Acquisition [Line Items]
Proceeds from the sale of businesses, net				$ 3,528
Gain (loss) on the sale of business				$ (92)
Skjern
Business Acquisition [Line Items]
Estimated purchase price	$ 88,000
Nordeste
Business Acquisition [Line Items]
Number of acquisitions | acquisition		2
Consideration, net of cash acquired		$ 6,518
Cash consideration paid		3,933
Contingent purchase liability		$ 2,585
Metal Packaging
Business Acquisition [Line Items]
Consideration paid, net of cash acquired			$ 1,348,589
Post-closing adjustment, cash settlement proceeds							$ (14,820)
Joint venture, ownership (percent)			51.00%
Number of facilities acquired | manufacturing_plant			8
Goodwill expected tax deductible percentage			67.00%
Acquisition and divestiture-related costs						$ 793				27,195
Fair value adjustment to acquisition date inventory										$ 33,155
Metal Packaging | Other Receivables
Business Acquisition [Line Items]
Post-closing adjustment, other receivables							$ 6,924
Ball Corporation
Business Acquisition [Line Items]
Joint venture, ownership (percent)			49.00%

XML

Acquisitions and Divestitures - Preliminary Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands		5 Months Ended	9 Months Ended
		Jul. 03, 2022	Oct. 02, 2022	Jan. 26, 2022	Dec. 31, 2021
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Goodwill	[1]		$ 1,641,948		$ 1,324,501
Measurement Period Adjustments
Goodwill			(9,187)
Metal Packaging
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Trade accounts receivable			113,850	$ 113,850
Other receivables			14,569	14,569
Inventories			190,626	190,070
Prepaid expenses			44,530	44,530
Property, plant and equipment			332,133	333,496
Right of use asset - operating leases			38,000	38,000
Other intangible assets			498,000	498,000
Goodwill			356,911	366,098
Other net tangible assets			47,873	48,069
Payable to suppliers			(105,580)	(105,580)
Accrued expenses and other			(30,182)	(30,671)
Notes payable and current portion of long-term debt			(46,463)	(46,463)
Noncurrent operating lease liabilities			(30,448)	(30,448)
Long-term debt			(39,543)	(39,543)
Deferred income taxes			(50,507)	(52,312)
Total purchase price, net of cash acquired			$ 1,333,769	$ 1,341,665
Measurement Period Adjustments
Inventories		$ 556
Property, plant and equipment		(1,363)
Goodwill		(9,187)
Other net tangible assets		(196)
Accrued expenses and other		489
Deferred income taxes		(1,805)
Total purchase price, net of cash acquired		$ (7,896)

[1] 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 (the “United States” or “U.S.”).

XML

Acquisitions and Divestitures - Pro Forma and Supplemental Information (Details) - USD ($) $ in Thousands	3 Months Ended		8 Months Ended	9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 02, 2022	Oct. 03, 2021
Business Acquisition [Line Items]
Net sales	$ 1,890,216	$ 1,643,726		$ 5,624,118	$ 4,767,306
Net income/(loss) attributable to Sonoco	123,047	$ 105,578		$ 428,287	$ (215,045)
Metal Packaging
Business Acquisition [Line Items]
Net sales	335,468		$ 798,018
Net income/(loss) attributable to Sonoco	$ 16,769		$ 61,216

XML

Shareholders' Equity - Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
	Sep. 09, 2022	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Numerator:
Net income/(loss) attributable to Sonoco		$ 122,229	$ 111,140	$ 369,234	$ (150,634)
Denominator:
Basic (in shares)		98,013	98,955	97,978	100,039
Dilutive effect of stock-based compensation (in shares)		749	470	691	0
Diluted (in shares)		98,762	99,425	98,669	100,039
Net income/(loss) attributable to Sonoco per common share:
Basic (in usd per share)		$ 1.25	$ 1.12	$ 3.77	$ (1.51)
Diluted (in usd per share)		1.24	1.12	3.74	(1.51)
Cash dividends (in usd per share)	$ 0.49	$ 0.49	$ 0.45	$ 1.43	$ 1.35

XML

Shareholders' Equity - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Anti-dilutive stock appreciation rights
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive stock appreciation rights (in shares)	366	0	380	142
Dilutive securities excluded due to reported loss
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive stock appreciation rights (in shares)				469

XML

Shareholders' Equity - Dilutive Securities Excluded From The Computation Of Diluted Net Loss Per Share (Details) shares in Thousands	9 Months Ended
	Oct. 03, 2021 shares
Dilutive securities excluded due to reported loss
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities excluded due to reported loss (in shares)	469

XML

Shareholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands										3 Months Ended			9 Months Ended
	Dec. 09, 2022 $ / shares	Oct. 18, 2022 $ / shares	Sep. 09, 2022 $ / shares	Jul. 20, 2022 $ / shares	Mar. 31, 2022 USD ($) partner	Jul. 26, 2021 USD ($) $ / shares shares	Jul. 21, 2021 USD ($) position $ / shares shares	May 10, 2021 USD ($) $ / shares shares	May 06, 2021 USD ($) shares	Oct. 02, 2022 $ / shares	Apr. 03, 2022 USD ($)	Oct. 03, 2021 $ / shares	Oct. 02, 2022 USD ($) $ / shares shares	Oct. 03, 2021 USD ($) $ / shares shares	Dec. 31, 2021 USD ($)	Apr. 20, 2021 USD ($)	Apr. 30, 2015
Class of Stock [Line Items]
Number of shares authorized for repurchase																$ 350,000
Number of shares available for repurchase															$ 137,972
Shares repurchased (in shares) | shares													0
Up-front payment to repurchase shares									$ 3,615				$ 4,056	$ 159,654
Number of shares repurchased (in shares) | shares									54,000
Dividend declared and payable (in usd per share) | $ / shares				$ 0.49
Dividends paid (in usd per share) | $ / shares			$ 0.49							$ 0.49		$ 0.45	$ 1.43	$ 1.35
Payments to noncontrolling interests													$ 14,474	$ 0
Purchase of noncontrolling interest											$ 13,196
Subsequent Event
Class of Stock [Line Items]
Dividend declared and payable (in usd per share) | $ / shares		$ 0.49
Dividends paid (in usd per share) | $ / shares	$ 0.49
Graffo Paranaense de Embalagens S/A
Class of Stock [Line Items]
Ownership percentage by parent																	67.00%
Ownership percentage by noncontrolling owners																	33.00%
Payments to noncontrolling interests					$ 14,474
Number of partners | partner					3
Purchase of noncontrolling interest													6,116
Increase (decrease) in accrued liabilities													$ 1,278
Tax Withholding Obligations
Class of Stock [Line Items]
Number of shares repurchased (in shares) | shares													71,000	100,000
Cost of shares repurchased													$ 4,056	$ 6,039
Capital in Excess of Stated Value
Class of Stock [Line Items]
Purchase of noncontrolling interest											$ 7,080		$ 7,080
Accelerated Share Repurchase Program
Class of Stock [Line Items]
Up-front payment to repurchase shares								$ 150,000
Number of shares repurchased (in shares) | shares						337,000	168,000	1,751,000
Percentage of expected shares to be repurchased (percent)								80.00%
Average price (in usd per share) | $ / shares								$ 68.5
Number of tranches | position							2
Effective settlement price (in usd per share) | $ / shares						$ 66.45	$ 66.52
Shares of notional transactional value						$ 100,000	$ 50,000

XML

Restructuring and Asset Impairments - Restructuring and Restructuring-related Asset Impairment Expenses by Type Incurred and by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring and restructuring-related asset impairment charges	$ 20,652	$ 3,204	$ 33,262	$ 4,048
Other asset impairments	0	284	10,095	4,841
Restructuring/Asset Impairment Charges	20,652	3,488	43,357	8,889
Consumer Packaging
Restructuring Cost and Reserve [Line Items]
Other asset impairments			930	2,442
All Other
Restructuring Cost and Reserve [Line Items]
Other asset impairments			9,165	2,399
Operating Segments | Consumer Packaging
Restructuring Cost and Reserve [Line Items]
Restructuring and restructuring-related asset impairment charges	4,350	2,450	8,529	3,708
Operating Segments | Industrial Paper Packaging
Restructuring Cost and Reserve [Line Items]
Restructuring and restructuring-related asset impairment charges	7,674	(1,888)	10,029	(4,827)
Operating Segments | All Other
Restructuring Cost and Reserve [Line Items]
Restructuring and restructuring-related asset impairment charges	18	555	(399)	3,075
Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring and restructuring-related asset impairment charges	8,610	2,087	15,103	2,092
Severance and Termination Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring and restructuring-related asset impairment charges	9,265	3,726	13,578	7,592
Asset Impairments/(Gains from Disposal of Assets)
Restructuring Cost and Reserve [Line Items]
Restructuring and restructuring-related asset impairment charges	3,301	(1,722)	4,533	(8,207)
Other Costs
Restructuring Cost and Reserve [Line Items]
Restructuring and restructuring-related asset impairment charges	$ 8,086	$ 1,200	$ 15,151	$ 4,663

XML

Restructuring and Asset Impairments - Restructuring Accrual Activity (Details) $ in Thousands	9 Months Ended
	Oct. 02, 2022 USD ($)
Restructuring Reserve [Roll Forward]
Liability at December 31, 2021	$ 12,790
2022 charges	33,262
Cash (payments)/receipts	(19,198)
Asset writedowns/disposals	(9,284)
Foreign currency translation	(270)
Liability at October 2, 2022	17,300
Severance and Termination Benefits
Restructuring Reserve [Roll Forward]
Liability at December 31, 2021	10,917
2022 charges	13,578
Cash (payments)/receipts	(9,966)
Asset writedowns/disposals	0
Foreign currency translation	(229)
Liability at October 2, 2022	14,300
Asset Impairments/ Disposal of Assets
Restructuring Reserve [Roll Forward]
Liability at December 31, 2021	0
2022 charges	4,533
Cash (payments)/receipts	4,751
Asset writedowns/disposals	(9,284)
Foreign currency translation	0
Liability at October 2, 2022	0
Other Costs
Restructuring Reserve [Roll Forward]
Liability at December 31, 2021	1,873
2022 charges	15,151
Cash (payments)/receipts	(13,983)
Asset writedowns/disposals	0
Foreign currency translation	(41)
Liability at October 2, 2022	$ 3,000

XML

Restructuring and Asset Impairments - Additional Information (Details) $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 01, 2022 USD ($)	Oct. 02, 2022 USD ($) employee	Oct. 03, 2021 USD ($)	Oct. 02, 2022 USD ($) employee	Oct. 03, 2021 USD ($)
Restructuring Cost and Reserve [Line Items]
Future additional charges expected to be recognized		$ 8,200		$ 8,200
Other asset impairments		$ 0	$ 284	10,095	$ 4,841
Impact of new accounting pronouncements
Restructuring Cost and Reserve [Line Items]
Other asset impairments	$ 3,747
All Other
Restructuring Cost and Reserve [Line Items]
Other asset impairments				9,165	2,399
Consumer Packaging
Restructuring Cost and Reserve [Line Items]
Other asset impairments				$ 930	$ 2,442
Organizational effectiveness efforts
Restructuring Cost and Reserve [Line Items]
Number of eliminated positions (position) | employee		180		180

XML

Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Oct. 02, 2022		Oct. 03, 2021	Oct. 02, 2022		Oct. 03, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	$ 1,936,391		$ 1,822,433	$ 1,849,541	[1]	$ 1,910,528
Other comprehensive (loss)/income	(82,363)		(35,118)	(153,248)		377,507
Ending Balance	1,935,081	[1]	1,860,732	1,935,081	[1]	1,860,732
Foreign Currency Items
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance				(269,076)		(194,024)
Other comprehensive (loss)/income before reclassifications				(155,179)		(57,261)
Other comprehensive (loss)/income				(151,432)		(57,261)
Ending Balance	(420,508)		(251,285)	(420,508)		(251,285)
Foreign Currency Items | Fixed Assets
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Amounts reclassified from accumulated other comprehensive loss net of tax				0		0
Foreign Currency Items | Net Income
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Amounts reclassified from accumulated other comprehensive loss net of tax				3,747		0
Defined Benefit Pension Items
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance				(91,397)		(562,747)
Other comprehensive (loss)/income before reclassifications				(3,948)		11,302
Other comprehensive (loss)/income				(876)		429,823
Ending Balance	(92,273)		(132,924)	(92,273)		(132,924)
Defined Benefit Pension Items | Fixed Assets
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Amounts reclassified from accumulated other comprehensive loss net of tax				0		0
Defined Benefit Pension Items | Net Income
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Amounts reclassified from accumulated other comprehensive loss net of tax				3,072		418,521
Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance				1,048		(71)
Other comprehensive (loss)/income before reclassifications				4,136		7,804
Other comprehensive (loss)/income				(792)		5,370
Ending Balance	256		5,299	256		5,299
Cash Flow Hedges | Fixed Assets
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Amounts reclassified from accumulated other comprehensive loss net of tax				(642)		(31)
Cash Flow Hedges | Net Income
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Amounts reclassified from accumulated other comprehensive loss net of tax				(4,286)		(2,403)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(430,677)		(344,456)	(359,425)		(756,842)
Other comprehensive (loss)/income before reclassifications				(154,991)		(38,155)
Other comprehensive (loss)/income				(153,100)		377,932
Ending Balance	$ (512,525)		$ (378,910)	(512,525)		(378,910)
Accumulated Other Comprehensive Loss | Fixed Assets
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Amounts reclassified from accumulated other comprehensive loss net of tax				(642)		(31)
Accumulated Other Comprehensive Loss | Net Income
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Amounts reclassified from accumulated other comprehensive loss net of tax				$ 2,533		$ 416,118

[1] 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 (the “United States” or “U.S.”).

XML

Accumulated Other Comprehensive Loss - Effects on Net Income of Significant Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Oct. 02, 2022	Jul. 03, 2022	Apr. 03, 2022	Oct. 03, 2021	Jul. 04, 2021	Apr. 04, 2021	Oct. 02, 2022	Oct. 03, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Restructuring/Asset Impairment Charges	$ (20,652)			$ (3,488)			$ (43,357)	$ (8,889)
Net sales	1,890,216			1,415,193			5,574,530	4,151,251
Cost of sales	(1,523,070)			(1,157,462)			(4,448,818)	(3,352,966)
(Loss)/Income before income taxes	155,127			111,768			476,437	(247,634)
Provision for/(Benefit from) income taxes	(36,824)			(2,564)			(116,712)	91,542
Net income/(loss)	122,502	$ 131,767	$ 115,607	111,555	$ (334,239)	$ 72,293	369,876	(150,391)
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net sales	559			937			2,425	2,766
Cost of sales	2,001			1,340			3,232	497
Net income/(loss)	1,171			391			(2,533)	(416,118)
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Items
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Restructuring/Asset Impairment Charges	0			0			(3,747)	0
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
(Loss)/Income before income taxes	2,560			2,277			5,657	3,263
Provision for/(Benefit from) income taxes	(473)			(607)			(1,371)	(860)
Net income/(loss)	2,087			1,670			4,286	2,403
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Pension Items
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
(Loss)/Income before income taxes	(1,229)			(1,661)			(4,085)	(562,625)
Provision for/(Benefit from) income taxes	313			382			1,013	144,104
Net income/(loss)	(916)			(1,279)			(3,072)	(418,521)
Reclassification out of Accumulated Other Comprehensive Income | Effect of settlement loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Non-operating pension costs	0			(21)			(430)	(547,652)
Reclassification out of Accumulated Other Comprehensive Income | Amortization of defined benefit pension items
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Non-operating pension costs	(1,229)			(1,640)			(3,655)	(14,973)
Reclassification out of Accumulated Other Comprehensive Income | Foreign exchange contracts | Cash Flow Hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net sales	559			937			2,425	2,766
Cost of sales	(433)			(711)			(2,139)	(2,129)
Reclassification out of Accumulated Other Comprehensive Income | Commodity contracts | Cash Flow Hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net sales	0			0			0	0
Cost of sales	$ 2,434			$ 2,051			$ 5,371	$ 2,626

XML

Accumulated Other Comprehensive Loss - Before and After Tax Amounts for Comprehensive Income (Loss) Components (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Oct. 02, 2022	Jul. 03, 2022	Apr. 03, 2022	Oct. 03, 2021	Jul. 04, 2021	Apr. 04, 2021	Oct. 02, 2022	Oct. 03, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive loss	$ (82,363)	$ (74,332)	$ 3,447	$ (35,118)	$ 438,823	$ (26,198)
Foreign Currency Items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive (loss)/income before reclassifications before tax	(81,457)			(37,077)			$ (155,179)	$ (57,261)
Other comprehensive (loss)/income before reclassifications, tax	0			0			0	0
Other comprehensive (loss)/income before reclassifications, net of tax	(81,457)			(37,077)			(155,179)	(57,261)
Other comprehensive income/(loss) before tax	(81,457)			(37,077)			(151,432)	(57,261)
Other comprehensive income/(loss), tax	0			0			0	0
Other comprehensive loss	(81,457)			(37,077)			(151,432)	(57,261)
Foreign Currency Items | Net Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income/(loss) before tax	0			0			3,747	0
Amounts reclassified from accumulated other comprehensive income/(loss), tax	0			0			0	0
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax	0			0			3,747	0
Defined benefit pension items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive (loss)/income before reclassifications before tax	(74)			559			(5,257)	14,923
Other comprehensive (loss)/income before reclassifications, tax	19			(145)			1,309	(3,621)
Other comprehensive (loss)/income before reclassifications, net of tax	(55)			414			(3,948)	11,302
Amounts reclassified from accumulated other comprehensive income/(loss) before tax							4,085	562,625
Amounts reclassified from accumulated other comprehensive income/(loss), tax							(1,013)	(144,104)
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax							3,072	418,521
Other comprehensive income/(loss) before tax	1,155			2,220			(1,172)	577,548
Other comprehensive income/(loss), tax	(294)			(527)			296	(147,725)
Other comprehensive loss	861			1,693			(876)	429,823
Defined benefit pension items | Net Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income/(loss) before tax	1,229			1,661
Amounts reclassified from accumulated other comprehensive income/(loss), tax	(313)			(382)
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax	916			1,279
Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive (loss)/income before reclassifications before tax	1,336			3,525			5,607	10,536
Other comprehensive (loss)/income before reclassifications, tax	(247)			(940)			(1,471)	(2,732)
Other comprehensive (loss)/income before reclassifications, net of tax	1,089			2,585			4,136	7,804
Other comprehensive income/(loss) before tax	(1,536)			1,268			(914)	7,231
Other comprehensive income/(loss), tax	284			(338)			122	(1,861)
Other comprehensive loss	(1,252)			930			(792)	5,370
Cash Flow Hedges | Fixed Assets
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income/(loss) before tax	(312)			20			(864)	(42)
Amounts reclassified from accumulated other comprehensive income/(loss), tax	58			(5)			222	11
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax	(254)			15			(642)	(31)
Cash Flow Hedges | Net Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income/(loss) before tax	(2,560)			(2,277)			(5,657)	(3,263)
Amounts reclassified from accumulated other comprehensive income/(loss), tax	473			607			1,371	860
Amounts reclassified from accumulated other comprehensive income/(loss) net of tax	(2,087)			(1,670)			(4,286)	(2,403)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income/(loss) before tax	(81,838)			(33,589)			(153,518)	527,518
Other comprehensive income/(loss), tax	(10)			(865)			418	(149,586)
Other comprehensive loss	$ (81,848)	$ (73,808)	$ 2,556	$ (34,454)	$ 438,064	$ (25,678)	$ (153,100)	$ 377,932

XML

Goodwill and Other Intangible Assets - Changes in Goodwill by Segment (Details) $ in Thousands	9 Months Ended
	Oct. 02, 2022 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 1,324,501	[1]
2022 Acquisitions	371,512
Foreign currency translation	(44,878)
Measurement period adjustments	(9,187)
Goodwill, ending balance	1,641,948	[1]
Consumer Packaging
Goodwill [Roll Forward]
Goodwill, beginning balance	572,416
2022 Acquisitions	366,098
Foreign currency translation	(22,001)
Measurement period adjustments	(9,187)
Goodwill, ending balance	907,326
Industrial Paper Packaging
Goodwill [Roll Forward]
Goodwill, beginning balance	367,780
2022 Acquisitions	5,414
Foreign currency translation	(17,584)
Measurement period adjustments	0
Goodwill, ending balance	355,610
All Other
Goodwill [Roll Forward]
Goodwill, beginning balance	384,305
2022 Acquisitions	0
Foreign currency translation	(5,293)
Measurement period adjustments	0
Goodwill, ending balance	$ 379,012

[1] 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 (the “United States” or “U.S.”).

XML

Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($)			3 Months Ended		9 Months Ended
		Jan. 26, 2022	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021	Dec. 31, 2021
Goodwill [Line Items]
Goodwill, impairment loss					$ 0
Goodwill	[1]		$ 1,641,948,000		1,641,948,000		$ 1,324,501,000
Indefinite-lived intangible assets			0		0
Aggregate amortization expense			20,690,000	$ 12,257,000	60,361,000	$ 37,117,000
Amortization expense on other intangible assets in 2022			80,800,000		80,800,000
Amortization expense on other intangible assets in 2023			79,100,000		79,100,000
Amortization expense on other intangible assets in 2024			71,700,000		71,700,000
Amortization expense on other intangible assets in 2025			61,100,000		61,100,000
Amortization expense on other intangible assets in 2026			57,800,000		57,800,000
Metal Packaging
Goodwill [Line Items]
Goodwill		$ 366,098,000	$ 356,911,000		$ 356,911,000
Customer Lists And Patents | Metal Packaging
Goodwill [Line Items]
Intangible assets acquired		$ 498,000,000
Useful lives of intangible asset		13 years 7 months 6 days
Other | Minimum
Goodwill [Line Items]
Useful lives of intangible asset					3 years
Other | Maximum
Goodwill [Line Items]
Useful lives of intangible asset					40 years
Plastics - Healthcare
Goodwill [Line Items]
Excess of fair value of reporting unit over carrying value (percent)			18.00%		18.00%
Goodwill			$ 60,710,000		$ 60,710,000
Plastics - Healthcare | Discount Rate
Goodwill [Line Items]
Discount rate (percent)			9.80%		9.80%
Change necessary in order for estimated fair value to fall below carrying value (percent)			11.00%		11.00%
Protexic
Goodwill [Line Items]
Excess of fair value of reporting unit over carrying value (percent)			18.30%		18.30%
Goodwill			$ 29,051,000		$ 29,051,000
Protexic | Discount Rate
Goodwill [Line Items]
Discount rate (percent)			9.50%		9.50%
Change necessary in order for estimated fair value to fall below carrying value (percent)			11.50%		11.50%

[1] 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 (the “United States” or “U.S.”).

XML

Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands		Oct. 02, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Total Other Intangible Assets, gross		$ 1,161,634	$ 679,206
Total Accumulated Amortization		(451,911)	(401,063)
Other Intangible Assets, net	[1]	709,723	278,143
Patents
Finite-Lived Intangible Assets [Line Items]
Total Other Intangible Assets, gross		29,296	29,315
Total Accumulated Amortization		(17,497)	(16,275)
Customer lists
Finite-Lived Intangible Assets [Line Items]
Total Other Intangible Assets, gross		1,040,346	592,195
Total Accumulated Amortization		(392,932)	(347,274)
Trade names
Finite-Lived Intangible Assets [Line Items]
Total Other Intangible Assets, gross		31,641	32,043
Total Accumulated Amortization		(15,397)	(14,106)
Proprietary technology
Finite-Lived Intangible Assets [Line Items]
Total Other Intangible Assets, gross		57,608	22,846
Total Accumulated Amortization		(24,038)	(21,394)
Other
Finite-Lived Intangible Assets [Line Items]
Total Other Intangible Assets, gross		2,743	2,807
Total Accumulated Amortization		$ (2,047)	$ (2,014)

[1] 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 (the “United States” or “U.S.”).

XML

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 31, 2021	Apr. 28, 2021
Line of Credit Facility [Line Items]
Finance lease obligations	$ 103,027	$ 60,282
Total debt	3,140,030	1,610,663
Less current portion and short-term notes	416,929	411,557
Long-term debt	2,723,101	1,199,106
Commercial paper
Line of Credit Facility [Line Items]
Debt	285,000	349,000
Syndicated term loan due February 2025
Line of Credit Facility [Line Items]
Debt	$ 299,602	0
1.800% notes due February 2025
Line of Credit Facility [Line Items]
Interest rate (percent)	1.80%
Debt	$ 398,168	0
2.250% notes due February 2027
Line of Credit Facility [Line Items]
Interest rate (percent)	2.25%
Debt	$ 297,780	0
2.850% notes due February 2032
Line of Credit Facility [Line Items]
Interest rate (percent)	2.85%
Debt	$ 495,132	0
3.125% notes due May 2030
Line of Credit Facility [Line Items]
Interest rate (percent)	3.125%
Debt	$ 595,771	595,342
5.750% notes due November 2040
Line of Credit Facility [Line Items]
Interest rate (percent)	5.75%		5.75%
Debt	$ 536,206	536,182	$ 600,000
Other foreign denominated debt
Line of Credit Facility [Line Items]
Debt	32,478	55,432
Other debt
Line of Credit Facility [Line Items]
Debt	$ 96,866	$ 14,425

XML

Debt - Debt Instruments (Details) - Unsecured Debt	Jan. 21, 2022 USD ($)
Line of Credit Facility [Line Items]
Principal Amount	$ 1,200,000,000
Issuance Costs and Discounts	(10,141,000)
Net Proceeds	1,189,859,000
2025 Notes
Line of Credit Facility [Line Items]
Principal Amount	400,000,000
Issuance Costs and Discounts	(2,356,000)
Net Proceeds	$ 397,644,000
Interest rate (percent)	1.80%
2027 Notes
Line of Credit Facility [Line Items]
Principal Amount	$ 300,000,000
Issuance Costs and Discounts	(2,565,000)
Net Proceeds	$ 297,435,000
Interest rate (percent)	2.25%
2032 Notes
Line of Credit Facility [Line Items]
Principal Amount	$ 500,000,000
Issuance Costs and Discounts	(5,220,000)
Net Proceeds	$ 494,780,000
Interest rate (percent)	2.85%

XML

Debt - Additional Information (Details)					3 Months Ended		9 Months Ended
	Jan. 21, 2022 USD ($) bank	May 25, 2021 USD ($)	May 21, 2021 USD ($)	May 13, 2021 USD ($)	Oct. 02, 2022 USD ($)	Oct. 03, 2021 USD ($)	Oct. 02, 2022 USD ($)	Oct. 03, 2021 USD ($)	Dec. 31, 2021 USD ($)	Apr. 28, 2021 USD ($)	Apr. 07, 2021 contract
Line of Credit Facility [Line Items]
Loss from the early extinguishment of debt					$ 0	$ 0	$ 0	$ (20,184,000)
Reverse Treasury Lock Contract
Line of Credit Facility [Line Items]
Net purchase/(sell) position of derivatives										$ 100,000,000
Gain (loss) on derivative				$ 1,356,000
Cross-currency swap
Line of Credit Facility [Line Items]
Gain (loss) on derivative			$ 4,387,000
Metal Packaging | LIBOR
Line of Credit Facility [Line Items]
Basis points (percent)							1.225%
Eight Banks Syndicate | Metal Packaging
Line of Credit Facility [Line Items]
Number of banks syndicated | bank	8
5.750% notes due November 2040
Line of Credit Facility [Line Items]
Amount offered to be repurchased										300,000,000
Debt					$ 536,206,000		$ 536,206,000		$ 536,182,000	$ 600,000,000
Interest rate (percent)					5.75%		5.75%			5.75%
Portion of outstanding debt repurchased (percent)		10.53%
Cash cost of debt repurchased		$ 81,961,000
Non-cash write-offs, net				73,000
Loss from the early extinguishment of debt				$ 20,184,000
1.00% Euro loan due May 2021
Line of Credit Facility [Line Items]
Debt principal		150,000,000
Debt		$ 177,780,000
Interest rate (percent)		1.00%
Number of forward contracts | contract											2
Unsecured Debt
Line of Credit Facility [Line Items]
Debt principal	$ 1,200,000,000
Debt	150,000,000
Unsecured Debt | 2027 Notes
Line of Credit Facility [Line Items]
Debt principal	$ 300,000,000
Debt term	3 years
Interest rate (percent)	2.25%

XML

Debt - Schedule of Debt Repurchased (Details) - USD ($) $ in Thousands		9 Months Ended
	May 25, 2021	Oct. 02, 2022	Oct. 03, 2021	Apr. 28, 2021
Line of Credit Facility [Line Items]
Premium and Other Amounts Paid		$ 0	$ 20,111
5.750% notes due November 2040
Line of Credit Facility [Line Items]
Interest rate (percent)		5.75%		5.75%
Principal Amount Tendered	$ 63,206
Premium and Other Amounts Paid	18,755
Total Cash Paid	$ 81,961

XML

Financial Instruments and Derivatives - Carrying Amount and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 31, 2021
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, net of current portion	$ 2,723,101	$ 1,199,106
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, net of current portion	$ 2,444,965	$ 1,434,711

XML

Financial Instruments and Derivatives - Additional Information (Details)		9 Months Ended
	Jan. 11, 2022 USD ($)	Oct. 02, 2022 USD ($) MMBTU	Jan. 21, 2022 USD ($) bank	Dec. 31, 2021 USD ($)
Derivative [Line Items]
Derivative instrument, number of counter-parties | bank			2
Gain on the settlement recognized	$ 5,201,000
Total fair value of other derivatives not designated as hedging instruments		$ 2,369,000		$ 92,000
Unsecured Debt
Derivative [Line Items]
Debt principal			$ 1,200,000,000
Debt			$ 150,000,000
2032 Notes | Unsecured Debt
Derivative [Line Items]
Interest rate (percent)			2.85%
Debt principal			$ 500,000,000
Cash Flow Hedging | Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Fair value of commodity cash flow hedges, gain (loss)		1,892,000		1,491,000
Commodity gain (loss) expected to be reclassified to the income statement during the next 12 months		1,881,000
Fair value of foreign currency cash flow hedges, gain (loss)		(36,000)		336,000
Foreign currency gain (loss) expected to be reclassified to the income statement during the next 12 months		$ (36,000)
Natural Gas Swaps | Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Approximate amount of commodity covered by swap contracts outstanding (in MMBTUs) | MMBTU		8,200,000
Anticipated usage percentage covered by a swap contract for the next fiscal year (percent)		69.00%
Anticipated usage percentage covered by a swap contract for year two (percent)		17.00%
Anticipated usage percentage covered by a swap contract for the remainder of the current year (percent)		47.00%
Natural Gas Swaps | Cash Flow Hedging | Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Approximate amount of commodity covered by swap contracts outstanding (in MMBTUs) | MMBTU		600,000
Anticipated usage percentage covered by a swap contract for the current fiscal year (percent)		24.00%
Anticipated usage percentage covered by a swap contract for the next fiscal year (percent)		1.00%
Anticipated usage percentage covered by a swap contract for year two (percent)		1.00%
Forward contracts | Cash Flow Hedging | Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Fair value of foreign currency cash flow hedges, gain (loss)		$ (1,476,000)		(457,000)
Foreign currency gain (loss) expected to be reclassified to the income statement during the next 12 months		(1,476,000)
Foreign currency gain (loss) reclassified to the income statement		$ (864,000)
Interest rate lock contract
Derivative [Line Items]
Derivatives				$ (550,000)

XML

Financial Instruments and Derivatives - Net Positions of Foreign Contracts (Details) - Oct. 02, 2022 ₺ in Thousands, € in Thousands, £ in Thousands, zł in Thousands, Kč in Thousands, $ in Thousands, $ in Thousands, $ in Thousands	COP ($)	MXN ($)	PLN (zł)	CZK (Kč)	EUR (€)	TRY (₺)	CAD ($)	GBP (£)
Cash Flow Hedging | Derivatives Designated as Hedging Instruments | Purchase
Derivative [Line Items]
Net purchase/(sell) position of derivatives	$ 7,354,331	$ 123,095	zł 22,382	Kč 16,675	€ 9,989	₺ 5,086	$ 3,798	£ 819

XML

Financial Instruments and Derivatives - Net Positions of Foreign Contracts Non-Designated Derivatives (Details) - Oct. 02, 2022 - Derivatives Not Designated as Hedging Instruments ₺ in Thousands, ฿ in Thousands, Rp in Thousands, $ in Thousands, $ in Thousands, $ in Thousands	COP ($)	MXN ($)	TRY (₺)	CAD ($)	IDR (Rp)	THB (฿)
Purchase
Derivative [Line Items]
Net purchase/(sell) position of derivatives	$ 24,748,486	$ 419,703	₺ 44,125	$ 9,568	Rp 8,083,663
Sell
Derivative [Line Items]
Net purchase/(sell) position of derivatives						฿ (11,143)

XML

Financial Instruments and Derivatives - Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 31, 2021
Derivatives Designated as Hedging Instruments | Commodity contracts | Prepaid expenses
Derivatives, Fair Value [Line Items]
Derivative asset	$ 1,905	$ 1,599
Derivatives Designated as Hedging Instruments | Commodity contracts | Other assets
Derivatives, Fair Value [Line Items]
Derivative asset	23	0
Derivatives Designated as Hedging Instruments | Commodity contracts | Accrued expenses and other
Derivatives, Fair Value [Line Items]
Derivative liability	(25)	(108)
Derivatives Designated as Hedging Instruments | Commodity contracts | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative liability	(11)	0
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Prepaid expenses
Derivatives, Fair Value [Line Items]
Derivative asset	3,098	848
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses and other
Derivatives, Fair Value [Line Items]
Derivative liability	(4,610)	(969)
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Prepaid expenses
Derivatives, Fair Value [Line Items]
Derivative asset	5,069	1,815
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Other assets
Derivatives, Fair Value [Line Items]
Derivative asset	689	0
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Accrued expenses and other
Derivatives, Fair Value [Line Items]
Derivative liability	(2,497)	(1,132)
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative liability	(812)	0
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Prepaid expenses
Derivatives, Fair Value [Line Items]
Derivative asset	237	135
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses and other
Derivatives, Fair Value [Line Items]
Derivative liability	(317)	(176)
Derivatives Not Designated as Hedging Instruments | Interest rate lock contract | Accrued expenses and other
Derivatives, Fair Value [Line Items]
Derivative liability	$ 0	$ (550)

XML

Financial Instruments and Derivatives - Effect of Derivative Instruments on Financial Performance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivatives	$ (290)	$ (407)	$ (202)	$ 156
Foreign exchange contracts | Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain or (Loss) Recognized	(484)	(675)	(283)	(906)
Foreign exchange contracts | Net sales
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income	559	937	2,425	2,766
Foreign exchange contracts | Cost of sales
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income	(433)	(711)	(2,139)	(2,129)
Commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivatives	1,626	4,200	5,809	10,801
Commodity contracts | Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain or (Loss) Recognized	2,574	2,861	10,072	3,295
Commodity contracts | Cost of sales
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income	$ 2,434	$ 2,051	$ 5,371	$ 2,626

XML

Financial Instruments and Derivatives - Reclassification of Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Revenue	$ 1,890,216	$ 1,415,193	$ 5,574,530	$ 4,151,251
Cost of sales	(1,523,070)	(1,157,462)	(4,448,818)	(3,352,966)
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Revenue	559	937	2,425	2,766
Cost of sales	2,001	1,340	3,232	497
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | Cash Flow Hedges | Foreign exchange contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Revenue	559	937	2,425	2,766
Cost of sales	(433)	(711)	(2,139)	(2,129)
Reclassification out of Accumulated Other Comprehensive loss into net (loss)/income | Cash Flow Hedges | Commodity contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Revenue	0	0	0	0
Cost of sales	$ 2,434	$ 2,051	$ 5,371	$ 2,626

XML

Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)	Oct. 02, 2022	Dec. 31, 2021
Interest rate lock contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives		$ (550,000)
Recurring basis | Derivatives Designated as Hedging Instruments | Commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	$ 1,892,000	1,491,000
Recurring basis | Derivatives Designated as Hedging Instruments | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	(1,512,000)	(121,000)
Recurring basis | Derivatives Not Designated as Hedging Instruments | Commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	2,449,000	683,000
Recurring basis | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	(80,000)	(41,000)
Recurring basis | Derivatives Not Designated as Hedging Instruments | Interest rate lock contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives		(550,000)
Recurring basis | Assets measured at NAV | Derivatives Designated as Hedging Instruments | Commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	0
Recurring basis | Assets measured at NAV | Derivatives Designated as Hedging Instruments | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	0
Recurring basis | Assets measured at NAV | Derivatives Not Designated as Hedging Instruments | Commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	0
Recurring basis | Assets measured at NAV | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	0
Recurring basis | Assets measured at NAV | Derivatives Not Designated as Hedging Instruments | Interest rate lock contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives		0
Recurring basis | Level 1 | Derivatives Designated as Hedging Instruments | Commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	0
Recurring basis | Level 1 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	0
Recurring basis | Level 1 | Derivatives Not Designated as Hedging Instruments | Commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	0
Recurring basis | Level 1 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	0
Recurring basis | Level 1 | Derivatives Not Designated as Hedging Instruments | Interest rate lock contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives		0
Recurring basis | Level 2 | Derivatives Designated as Hedging Instruments | Commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	1,892,000	1,491,000
Recurring basis | Level 2 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	(1,512,000)	(121,000)
Recurring basis | Level 2 | Derivatives Not Designated as Hedging Instruments | Commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	2,449,000	683,000
Recurring basis | Level 2 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	(80,000)	(41,000)
Recurring basis | Level 2 | Derivatives Not Designated as Hedging Instruments | Interest rate lock contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives		(550,000)
Recurring basis | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0
Recurring basis | Level 3 | Derivatives Designated as Hedging Instruments | Commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	0
Recurring basis | Level 3 | Derivatives Designated as Hedging Instruments | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	0
Recurring basis | Level 3 | Derivatives Not Designated as Hedging Instruments | Commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	0
Recurring basis | Level 3 | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	$ 0	0
Recurring basis | Level 3 | Derivatives Not Designated as Hedging Instruments | Interest rate lock contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives		$ 0

XML

Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 796	$ 968	$ 2,459	$ 2,949
Interest cost	2,593	2,287	7,974	22,051
Expected return on plan assets	(2,527)	(3,361)	(7,670)	(21,672)
Amortization of prior service cost	220	226	673	687
Amortization of net actuarial loss	1,179	1,600	3,495	14,849
Effect of settlement loss	0	21	430	547,652
Net periodic benefit cost	2,261	1,741	7,361	566,516
Retiree Health and Life Insurance Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	80	93	241	282
Interest cost	64	49	194	149
Expected return on plan assets	(110)	(111)	(332)	(335)
Amortization of net actuarial loss	(170)	(186)	(513)	(563)
Net periodic benefit cost	$ (136)	$ (155)	$ (410)	$ (467)

XML

Employee Benefit Plans - Additional Information (Details) - USD ($)			3 Months Ended			9 Months Ended
	Jan. 01, 2022	Dec. 31, 2021	Oct. 02, 2022	Oct. 03, 2021	Jul. 04, 2021	Oct. 02, 2022	Oct. 03, 2021
Defined Benefit Plan Disclosure [Line Items]
Contributions						$ 11,600,000	$ 142,615,000
Expected contributions for remainder of fiscal year			$ 4,100,000			$ 4,100,000
Inactive Plan
Defined Benefit Plan Disclosure [Line Items]
Contributions					$ 133,000,000
Sonoco Savings Plan
Defined Benefit Plan Disclosure [Line Items]
Contribution percentage minimum (percent)						1.00%
Contribution percentage maximum (percent)						100.00%
Defined contribution plan, employer matching contribution (percent)	100.00%	50.00%
Employer matching contribution, percent of employees' gross pay (percent)	6.00%	4.00%
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Settlement losses recognized			0	$ 21,000		$ 430,000	547,652,000
Pension Plan | Sonoco Pension Plan for Inactive Participants
Defined Benefit Plan Disclosure [Line Items]
Settlement losses recognized						430,000	361,000
Non-cash settlement charges expected to be incurred next year					$ 547,291,000
Pension Plan | Sonoco Retirement Contribution
Defined Benefit Plan Disclosure [Line Items]
Contributions						21,948,000	22,665,000
Expected contributions for remainder of fiscal year			$ 0			$ 0
Recognized expense related to the plan				$ 5,456,000			$ 17,290,000
Pension Plan | Sonoco Retirement Contribution | United States
Defined Benefit Plan Disclosure [Line Items]
Employer matching contribution, percent of employees' gross pay (percent)						4.00%
Employer matching contribution, percent of employees' gross pay in excess of social security (percent)						4.00%

XML

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Income Tax Disclosure [Abstract]
Effective tax rate	23.70%	2.30%	24.50%	37.00%
Increase of uncertain tax benefits			$ 1,614
Possible decrease in reserve for unrecognized tax benefits	$ 200		$ 200

XML

Leases - Additional Information (Details) $ in Thousands	9 Months Ended
	Oct. 02, 2022 USD ($) option	Jan. 26, 2022 USD ($)	Dec. 31, 2021 USD ($)
Lessee, Lease, Description [Line Items]
Number of renewal options | option	1
Lease term	10 years
Finance lease obligations	$ 103,027		$ 60,282
Metal Packaging
Lessee, Lease, Description [Line Items]
Lease liabilities		$ 33,910
Weighted average remaining lease term (years) - operating leases		11 years
Weighted average discount rate - operating leases (percent)		2.80%
Finance lease obligations		$ 46,687
Weighted average remaining lease term (years) - finance leases		3 years 9 months 18 days
Weighted average discount rate - finance leases (percent)		7.50%
Minimum
Lessee, Lease, Description [Line Items]
Lease renewal terms	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lease renewal terms	5 years

XML

Leases - Balance Sheet Location and Values of Lease Assets and Lease Liabilities (Details) - USD ($) $ in Thousands		Oct. 02, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease assets	[1]	$ 296,838	$ 268,390
Finance lease assets		103,540	55,826
Total lease assets		400,378	324,216
Current operating lease liabilities		49,606	45,305
Current finance lease liabilities		16,115	6,952
Total current lease liabilities		65,721	52,257
Noncurrent operating lease liabilities	[1]	253,466	234,167
Noncurrent finance lease liabilities		86,912	53,330
Total noncurrent lease liabilities		340,378	287,497
Total lease liabilities		$ 406,099	$ 339,754
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]		Other Assets	Other Assets
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]		Accrued expenses and other	Accrued expenses and other
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]		Notes payable and current portion of long-term debt	Notes payable and current portion of long-term debt
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]		Long-Term Debt, Excluding Current Maturities	Long-Term Debt, Excluding Current Maturities

[1] 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 (the “United States” or “U.S.”).

XML

Leases - Components of Company's Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Leases [Abstract]
Operating lease cost	$ 12,863	$ 11,623	$ 38,679	$ 36,720
Amortization of lease asset	3,133	1,476	9,122	4,133
Interest on lease liabilities	1,270	367	3,517	997
Variable lease cost	7,894	6,796	22,416	19,569
Impairment charges	61	0	293	0
Total lease cost	$ 25,221	$ 20,262	$ 74,027	$ 61,419

XML

Leases - Other Lease Related Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$ 39,405	$ 38,757
Operating cash flows used by finance leases	3,517	997
Financing cash flows used by finance leases	9,181	3,375
Leased assets obtained in exchange for new operating lease liabilities	31,048	12,230
Leased assets obtained in exchange for new finance lease liabilities	8,224	7,071
Modification to leased assets for increase in operating lease liabilities	2,258	12,059
Modification to leased assets for (decrease)/increase in finance lease liabilities	(642)	9,586
Termination reclasses to decrease operating lease assets	(4,133)	(4,971)
Termination reclasses to decrease operating lease liabilities	(4,382)	(5,278)
Termination reclasses to decrease finance lease assets	(1,351)	(33)
Termination reclasses to decrease finance lease liabilities	$ (87)	$ (40)

XML

Revenue Recognition - Additional Information (Details)	9 Months Ended
	Oct. 02, 2022
Revenue from Contract with Customer [Abstract]
Payment terms	120 days

XML

Revenue Recognition - Receivables, Contract Assets and Liabilities from Contracts with Customer (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Contract Assets	$ 67,254	$ 51,106	$ 48,390
Contract Liabilities	$ (28,427)	$ (18,993)	$ (16,687)

XML

Revenue Recognition - Significant Changes in the Contract Assets and Liabilities Balances (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Oct. 02, 2022	Dec. 31, 2021
Contract Asset
Beginning Balance	$ 51,106	$ 48,390
Acquired as part of a business combination	8,107
Increases due to rights to consideration for customer specific goods produced, but not billed during the period	67,254	51,106
Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combinations	(59,213)	(48,390)
Ending Balance	67,254	51,106
Contract Liability
Beginning Balance	(18,993)	(16,687)
Acquired as part of a business combination	(5,588)
Revenue deferred or rebates accrued	(47,303)	(36,527)
Recognized as revenue	14,430	7,238
Rebates paid to customers	29,027	26,983
Ending Balance	$ (28,427)	$ (18,993)

XML

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 1,890,216	$ 1,415,193	$ 5,574,530	$ 4,151,251
United States
Disaggregation of Revenue [Line Items]
Revenue	1,407,906	923,983	4,035,043	2,723,911
Europe
Disaggregation of Revenue [Line Items]
Revenue	221,280	233,172	732,252	702,861
Canada
Disaggregation of Revenue [Line Items]
Revenue	58,625	55,799	174,294	157,166
Asia
Disaggregation of Revenue [Line Items]
Revenue	91,152	102,218	291,177	293,827
Other
Disaggregation of Revenue [Line Items]
Revenue	111,253	100,021	341,764	273,486
Consumer Packaging
Disaggregation of Revenue [Line Items]
Revenue	1,030,549	598,969	2,888,630	1,779,525
Consumer Packaging | United States
Disaggregation of Revenue [Line Items]
Revenue	837,048	408,295	2,282,559	1,219,666
Consumer Packaging | Europe
Disaggregation of Revenue [Line Items]
Revenue	101,665	109,566	331,745	334,995
Consumer Packaging | Canada
Disaggregation of Revenue [Line Items]
Revenue	30,154	31,612	89,342	87,948
Consumer Packaging | Asia
Disaggregation of Revenue [Line Items]
Revenue	25,492	20,728	74,533	60,256
Consumer Packaging | Other
Disaggregation of Revenue [Line Items]
Revenue	36,190	28,768	110,451	76,660
Industrial Paper Packaging
Disaggregation of Revenue [Line Items]
Revenue	661,452	635,230	2,087,981	1,809,159
Industrial Paper Packaging | United States
Disaggregation of Revenue [Line Items]
Revenue	405,382	370,659	1,259,348	1,042,249
Industrial Paper Packaging | Europe
Disaggregation of Revenue [Line Items]
Revenue	99,804	99,573	334,007	300,495
Industrial Paper Packaging | Canada
Disaggregation of Revenue [Line Items]
Revenue	28,471	24,187	84,952	69,218
Industrial Paper Packaging | Asia
Disaggregation of Revenue [Line Items]
Revenue	65,475	81,097	215,896	232,657
Industrial Paper Packaging | Other
Disaggregation of Revenue [Line Items]
Revenue	62,320	59,714	193,778	164,540
All Other
Disaggregation of Revenue [Line Items]
Revenue	198,215	180,994	597,919	562,567
All Other | United States
Disaggregation of Revenue [Line Items]
Revenue	165,476	145,029	493,136	461,996
All Other | Europe
Disaggregation of Revenue [Line Items]
Revenue	19,811	24,033	66,500	67,371
All Other | Canada
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
All Other | Asia
Disaggregation of Revenue [Line Items]
Revenue	185	393	748	914
All Other | Other
Disaggregation of Revenue [Line Items]
Revenue	$ 12,743	$ 11,539	$ 37,535	$ 32,286

XML

Segment Reporting - Additional Information (Details)	9 Months Ended
	Oct. 02, 2022 USD ($) segment		Jan. 26, 2022 USD ($)	Dec. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment	2
Total assets	$ 6,975,646,000	[1]		$ 5,073,235,000
Consumer Packaging | Metal Packaging
Segment Reporting Information [Line Items]
Total assets			$ 1,661,573

[1] 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 (the “United States” or “U.S.”).

XML

Segment Reporting - Segment Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Segment Reporting Information [Line Items]
Net sales	$ 1,890,216	$ 1,415,193	$ 5,574,530	$ 4,151,251
Operating profit	181,942	126,512	548,480	382,112
Restructuring/Asset impairment charges	(20,652)	(3,488)	(43,357)	(8,889)
Amortization of acquisition intangibles	(20,690)	(12,257)	(60,361)	(37,117)
Other non-base (charges)/income, net	(1,807)	7,570	(83,838)	294
Consumer Packaging
Segment Reporting Information [Line Items]
Net sales	1,030,549	598,969	2,888,630	1,779,525
Industrial Paper Packaging
Segment Reporting Information [Line Items]
Net sales	661,452	635,230	2,087,981	1,809,159
All Other
Segment Reporting Information [Line Items]
Net sales	198,215	180,994	597,919	562,567
Operating Segments
Segment Reporting Information [Line Items]
Operating profit	225,091	134,687	736,036	427,824
Operating Segments | Consumer Packaging
Segment Reporting Information [Line Items]
Net sales	1,030,549	598,969	2,888,630	1,779,525
Operating profit	127,859	66,341	440,889	212,997
Operating Segments | Industrial Paper Packaging
Segment Reporting Information [Line Items]
Net sales	661,452	635,230	2,087,981	1,809,159
Operating profit	81,859	55,451	248,721	167,568
Operating Segments | All Other
Segment Reporting Information [Line Items]
Net sales	198,215	180,994	597,919	562,567
Operating profit	15,373	12,895	46,426	47,259
Intersegment Sales
Segment Reporting Information [Line Items]
Net sales	38,131	31,901	114,016	94,514
Intersegment Sales | Consumer Packaging
Segment Reporting Information [Line Items]
Net sales	1,663	1,608	5,189	4,460
Intersegment Sales | Industrial Paper Packaging
Segment Reporting Information [Line Items]
Net sales	33,936	27,975	101,072	82,571
Intersegment Sales | All Other
Segment Reporting Information [Line Items]
Net sales	$ 2,532	$ 2,318	$ 7,755	$ 7,483

XML

Commitments and Contingencies (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2022	Dec. 31, 2021
Site Contingency [Line Items]
Environmental accrual	$ 7,062	$ 7,380
Multiple Sites
Site Contingency [Line Items]
Environmental accrual	1,604	1,825
Tegrant Holding Corporation
Site Contingency [Line Items]
Payment towards remediation of sites	1,943
Tegrant Holding Corporation | Spartanburg, South Carolina Site
Site Contingency [Line Items]
Environmental accrual	$ 5,458	$ 5,555