Comprehensive Income

6 Months Ended

Jul. 03, 2011

Note 5: Comprehensive Income

The following table reconciles net income to comprehensive income attributable to Sonoco:


	Three Months Ended						Six Months Ended
	July 3,			June 27,			July 3,			June 27,
	2011			2010			2011			2010
Net income	$	53,706		$	58,956		$	111,343		$	107,509

Other comprehensive income/(loss):
Foreign currency translation adjustments		17,982			(31,642	)		57,633			(42,891	)
Changes in defined benefit plans, net of tax		2,791			4,272			5,387			8,451
Changes in derivative financial instruments, net of tax		852			2,268			3,717			(810	)

Comprehensive income	$	75,331		$	33,854		$	178,080		$	72,259
Comprehensive (income)/loss attributable to noncontrolling interests		(298	)		(3	)		(544	)		16


Comprehensive income attributable to Sonoco	$	75,033		$	33,851		$	177,536		$	72,275

The following table summarizes the components of accumulated other comprehensive loss and the changes in accumulated other comprehensive loss, net of tax as applicable, for the three months ended July 3, 2011:


	Foreign								Accumulated
	Currency		Defined			Derivative			Other
	Translation		Benefit			Financial			Comprehensive
	Adjustments		Plans			Instruments			Loss

Balance at December 31, 2010	$	17,685	$	(303,037	)	$	(7,515	)	$	(292,867	)
Year-to-date change		57,633		5,387			3,717			66,737


Balance at July 3, 2011	$	75,318	$	(297,650	)	$	(3,798	)	$	(226,130	)

At July 3, 2011, the Company had commodity and foreign currency contracts outstanding to fix the costs of certain anticipated raw materials and energy purchases. These contracts, which have maturities ranging from July 2011 to December 2013, qualify as cash flow hedges under U.S. GAAP. The amounts included in accumulated other comprehensive loss related to these cash flow hedges were an unfavorable position of $5,944 ($3,798 after tax) at July 3, 2011, and an unfavorable position of $11,921 ($7,515 after tax) at December 31, 2010.

The cumulative tax benefit on Derivative Financial Instruments was $2,146 at July 3, 2011, and $4,406 at December 31, 2010. During the three- and six-month periods ended July 3, 2011, the tax benefit on Derivative Financial Instruments decreased by $(514) and $(2,260) respectively.

The cumulative tax benefit on Defined Benefit Plans was $176,423 at July 3, 2011, and $179,628 at December 31, 2010. During the three- and six-month periods ended July 3, 2011, the tax benefit on Defined Benefit Plans decreased by $(1,582) and $(3,205), respectively.

Current period foreign currency translation adjustments of $458 are included in noncontrolling interest at July 3, 2011.

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

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