Employee Benefit Plans

6 Months Ended

Jul. 03, 2011

Employee Benefit Plans [Abstract]

Employee Benefit Plans

Note 9: Employee Benefit Plans

Retirement Plans and Retiree Health and Life Insurance Plans

The Company provides non-contributory defined benefit pension plans for a majority of its employees in the United States and certain of its employees in Mexico and Belgium. Effective December 31, 2003, the Company froze participation for newly hired salaried and non-union hourly U.S. employees in its traditional defined benefit pension plan. At that time, the Company adopted a defined contribution plan, the Sonoco Investment and Retirement Plan (SIRP), which covers its non-union U.S. employees hired on or after January 1, 2004. The Company also sponsors contributory defined benefit pension plans covering the majority of its employees in the United Kingdom, Canada, and the Netherlands.

On February 4, 2009, the U.S. qualified defined benefit pension plan was amended to freeze plan benefits for all active participants effective December 31, 2018. Remaining active participants in the U.S. qualified plan will become participants of the SIRP effective January 1, 2019.

The Company also 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 include the following:

	Three Months Ended						Six Months Ended
	July 3,			June 27,			July 3,			June 27,
	2011			2010			2011			2010
Retirement Plans
Service cost	$	5,014		$	5,466		$	10,117		$	10,704
Interest cost		17,522			17,913			35,355			35,147
Expected return on plan assets		(21,052	)		(19,608	)		(42,382	)		(38,457	)
Amortization of net transition obligation		118			111			237			216
Amortization of prior service cost		35			30			71			59
Amortization of net actuarial loss		5,828			8,679			11,769			17,011
Net periodic benefit cost	$	7,465		$	12,591		$	15,167		$	24,680
Retiree Health and Life Insurance Plans
Service cost	$	298		$	299		$	602		$	585
Interest cost		421			606			851			1,186
Expected return on plan assets		(350	)		(349	)		(707	)		(683	)
Amortization of prior service credit		(1,950	)		(2,583	)		(3,942	)		(5,052	)
Amortization of net actuarial loss		345			596			697			1,165
Net periodic benefit income	$	(1,236	)	$	(1,431	)	$	(2,499	)	$	(2,799	)

During the six months ended July 3, 2011, the Company made contributions of $101,914 to its defined benefit retirement and retiree health and life insurance plans, including an $85,262 contribution to its U.S. qualified defined benefit pension plan. The Company anticipates that it will make additional contributions of approximately $31,000 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2011. No assurances can be made, however, about funding requirements beyond 2011, as they will depend largely on actual investment returns and future actuarial assumptions.

Sonoco Investment and Retirement Plan (SIRP)

The Company recognized SIRP expense totaling $2,501 and $2,217 for the quarters ended July 3, 2011 and June 27, 2010, respectively, and $4,537 and $4,754 for the six month periods ended July 3, 2011 and June 27, 2010, respectively. Contributions to the SIRP, annually funded in the first quarter, totaled $8,568 during the six months ended July 3, 2011. No additional SIRP contributions are expected during the remainder of 2011.