SON 10-Q

Sonoco Products Co (SON)

10-Q 2024-11-01 For: 2024-09-29

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Added on April 08, 2026

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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)


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


PART I. FINANCIAL INFORMATION		3

Item 1.	Financial Statements:	3

	Condensed Consolidated Balance Sheets – September 29 , 2024 (unaudited) and December 31, 2023 (unaudited)	3

	Condensed Consolidated Statements of Income – Three and Nine Months Ended September 29 , 2024 (unaudited) and October 1 , 2023 (unaudited)	4

	Condensed Consolidated Statements of Comprehensive Income – Three and Nine Months Ended September 29 , 2024 (unaudited) and October 1 , 2023 (unaudited)	5

	Condensed Consolidated Statements of Changes in Total Equity – Three and Nine Months Ended Sept ember 29 , 2024 (unaudited) and October 1 , 2023 (unaudited)	6

	Condensed Consolidated Statements of Cash Flows – Nine Months Ended September 29 , 2024 (unaudited) and October 1 , 2023 (unaudited)	8

	Notes to Condensed Consolidated Financial Statements (unaudited)	9



Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	40

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	66

Item 4.	Controls and Procedures.	66

PART II. OTHER INFORMATION		67

Item 1.	Legal Proceedings.	67



Item 5.	Other Information.	67

Item 6.	Exhibits.	68


	September 29, 2024		December 31, 2023*
Assets
Current Assets
Cash and cash equivalents	$	1,930,633	$	151,937
Trade accounts receivable, net of allowances	1,042,520		904,898
Other receivables	110,042		106,644
Inventories, net:
Finished and in process	304,042		324,910
Materials and supplies	451,210		448,591
Prepaid expenses	130,584		113,385

Total Current Assets	3,969,031		2,050,365
Property, Plant and Equipment, Net	1,930,025		1,906,137
Goodwill	1,780,967		1,810,654
Other Intangible Assets, Net	785,616		853,670
Deferred Income Taxes	28,682		31,329
Right of Use Asset-Operating Leases	314,611		314,944
Other Assets	233,929		224,858
Total Assets	$	9,042,861	$	7,191,957
Liabilities and Equity
Current Liabilities
Payable to suppliers	$	748,193	$	707,490
Accrued expenses and other	438,296		400,014
Notes payable and current portion of long-term debt	481,706		47,132
Accrued taxes	10,084		10,641

Total Current Liabilities	1,678,279		1,165,277
Long-term Debt, Net of Current Portion	4,320,442		3,035,868
Noncurrent Operating Lease Liabilities	269,251		265,454
Pension and Other Postretirement Benefits	137,302		142,900
Deferred Income Taxes	84,048		100,788
Other Liabilities	66,379		49,835
Commitments and Contingencies

Sonoco Shareholders’ Equity
Common stock, no par value
Authorized 300,000 shares 98,258 and 97,957 shares issued and outstanding at September 29, 2024 and December 31, 2023, respectively	7,175		7,175
Capital in excess of stated value	175,532		159,047
Accumulated other comprehensive loss	(382,010)		(366,262)
Retained earnings	2,678,242		2,624,380
Total Sonoco Shareholders’ Equity	2,478,939		2,424,340
Noncontrolling Interests	8,221		7,495
Total Equity	2,487,160		2,431,835
Total Liabilities and Equity	$	9,042,861	$	7,191,957


	Three Months Ended				Nine Months Ended
	September 29, 2024		October 1, 2023		September 29, 2024		October 1, 2023
Net sales	$	1,675,866	$	1,710,419	$	4,936,888	$	5,145,492
Cost of sales	1,317,129		1,346,163		3,883,244		4,049,490
Gross profit	358,737		364,256		1,053,644		1,096,002
Selling, general and administrative expenses	190,645		182,672		586,337		541,421
Restructuring/Asset impairment charges	8,190		18,110		59,058		52,981
(Loss)/Gain on divestiture of business and other assets	(31,770)		(537)		(27,292)		78,844
Operating profit	128,132		162,937		380,957		580,444
Other income, net	—		36,943		5,867		36,943
Non-operating pension costs	2,947		3,424		10,412		10,424
Interest expense	61,643		32,847		122,503		101,363
Interest income	6,014		3,173		13,127		6,679

Income before income taxes	69,556		166,782		267,036		512,279
Provision for income taxes	21,154		39,351		65,821		127,003
Income before equity in earnings of affiliates	48,402		127,431		201,215		385,276
Equity in earnings of affiliates, net of tax	2,807		3,627		6,218		8,795
Net income	51,209		131,058		207,433		394,071
Net income attributable to noncontrolling interests	(288)		(309)		(524)		(354)
Net income attributable to Sonoco	$	50,921	$	130,749	$	206,909	$	393,717

Weighted average common shares outstanding:
Basic	98,683		98,337		98,616		98,276
Diluted	99,267		98,912		99,221		98,800
Per common share:
Net income attributable to Sonoco:
Basic	$	0.52	$	1.33	$	2.10	$	4.01
Diluted	$	0.51	$	1.32	$	2.09	$	3.98


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


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


	Total Equity			Common Shares			Capital in Excess of Stated Value		Accumulated Other Comprehensive Loss		Retained Earnings		Noncontrolling Interests
				Outstanding	Amount
December 31, 2023	$	2,431,835		97,957	$	7,175	$	159,047	$	(366,262)	$	2,624,380	$	7,495
Net income	65,273										65,177		96
Other comprehensive income/(loss):
Translation loss	(19,786)								(19,319)				(467)
Defined benefit plan adjustment, net of tax	43								43
Derivative financial instruments, net of tax	169								169
Other comprehensive loss	(19,574)								(19,107)				(467)
Dividends	(50,348)										(50,348)

Issuance of stock awards	204			460			204
Shares repurchased	(9,139)			(162)			(9,139)
Share-based compensation	8,325						8,325
Other	906						906
March 31, 2024	$	2,427,482		98,255	$	7,175	$	159,343	$	(385,369)	$	2,639,209	$	7,124
Net income	90,951										90,811		140
Other comprehensive income/(loss):
Translation loss	(33,408)								(33,366)				(42)
Defined benefit plan adjustment, net of tax	2,079								2,079
Derivative financial instruments, net of tax	(1,661)								(1,661)
Other comprehensive loss	(32,990)								(32,948)				(42)
Dividends	(51,347)										(51,347)
Issuance of stock awards	181			4			181
Shares repurchased	(23)			(1)			(23)
Share-based compensation	6,656						6,656
Other	957						957

June 30, 2024	$	2,441,867	2,441,867	98,258	$	7,175	$	167,114	$	(418,317)	$	2,678,673	$	7,222
Net income	51,209										50,921		288
Other comprehensive income:
Translation gain	35,922								35,211				711
Defined benefit plan adjustment, net of tax	1,036								1,036
Derivative financial instruments, net of tax	60								60
Other comprehensive income	37,018								36,307				711
Dividends	(51,352)										(51,352)
Issuance of stock awards	265			—			265
Shares repurchased	(10)			—			(10)
Share-based compensation	7,682						7,682
Other	481						481
September 29, 2024	$	2,487,160		98,258	$	7,175	$	175,532	$	(382,010)	$	2,678,242	$	8,221


	Total Equity		Common Shares			Capital in Excess of Stated Value		Accumulated Other Comprehensive Loss		Retained Earnings		Noncontrolling Interests
			Outstanding	Amount
December 31, 2022	$	2,072,797	97,645	$	7,175	$	140,539	$	(430,083)	$	2,348,183	$	6,983
Net income/(loss)	148,264									148,319		(55)
Other comprehensive income:
Translation gain	31,808							31,569				239
Defined benefit plan adjustment, net of tax	916							916
Derivative financial instruments, net of tax	2,514							2,514
Other comprehensive income	35,238							34,999				239
Dividends	(48,203)									(48,203)
Issuance of stock awards	472		485			472
Shares repurchased	(10,576)		(175)			(10,576)
Share-based compensation	7,573					7,573


April 2, 2023	$	2,205,565	97,955	$	7,175	$	138,008	$	(395,084)	$	2,448,299	$	7,167
Net income	114,749									114,649		$	100
Other comprehensive income/(loss):
Translation gain/(loss)	21,690							21,988				(298)
Defined benefit plan adjustment, net of tax	(1,763)							(1,763)
Derivative financial instruments, net of tax	1,428							1,428
Other comprehensive income/(loss)	21,355							21,653				(298)
Dividends	(50,180)									(50,180)
Issuance of stock awards	222		1			222
Shares repurchased	(26)		—			(26)
Share-based compensation	7,637					7,637
July 2, 2023	$	2,299,322	97,956	$	7,175	$	145,841	$	(373,431)	$	2,512,768	$	6,969
Net income	131,058									130,749		$	309
Other comprehensive income/(loss):
Translation loss	(49,024)							(48,356)				(668)
Defined benefit plan adjustment, net of tax	3,401							3,401
Derivative financial instruments, net of tax	(1,724)							(1,724)
Other comprehensive loss	(47,347)							(46,679)				(668)
Dividends	(50,185)									(50,185)
Issuance of stock awards	397		—			397
Shares repurchased	(3)		—			(3)
Share-based compensation	5,913					5,913
October 1, 2023	$	2,339,155	97,956	$	7,175	$	152,148	$	(420,110)	$	2,593,332	$	6,610


	Initial Allocation		Measurement Period Adjustments		Preliminary Allocation
Trade accounts receivable	$	30,301	$	(133)	$	30,168
Other receivables	6,088		(465)		5,623
Inventories	9,269		—		9,269
Prepaid expenses	1,430		—		1,430
Property, plant and equipment	11,456		17,425		28,881
Right of use asset - operating leases	217		—		217
Other intangible assets	8,653		188		8,841
Goodwill	15,704		(7,454)		8,250
Other assets	793		—		793
Payable to suppliers	(15,899)		2,951		(12,948)
Accrued expenses and other	(5,733)		(1,350)		(7,083)


Noncurrent operating lease liabilities	(117)		—		(117)

Deferred income taxes	(2,934)		(6,000)		(8,934)
Total purchase price, net of cash acquired	$	59,228	$	5,162	$	64,390


	Purchase Consideration
Cash consideration, net of cash acquired	$	313,388
Fair value of previously held ownership interest in RTS Packaging	59,472
Final working capital adjustment	452
Settlement of preexisting relationships	1,235
Purchase consideration transferred	$	374,547


	Initial Allocation		Measurement Period Adjustments		Final Allocation
Trade accounts receivable	$	17,488	$	—	$	17,488

Inventories	20,209		(947)		19,262
Prepaid expenses	2,720		(589)		2,131
Property, plant and equipment	73,483		753		74,236
Right of use asset - operating leases	34,604		290		34,894
Other intangible assets	199,560		(8,995)		190,565
Goodwill	92,657		14,909		107,566
Other assets	2,465		(412)		2,053
Payable to suppliers	(7,320)		—		(7,320)
Accrued expenses and other	(15,167)		(25)		(15,192)
Notes payable and current portion of long-term debt	(24)		—		(24)
Noncurrent operating lease liabilities	(29,905)		—		(29,905)
Pension and other postretirement benefits	(10,761)		(768)		(11,529)
Long-term debt	(1,942)		—		(1,942)
Deferred income taxes	(3,419)		(2,502)		(5,921)
Other long-term liabilities	(3,293)		1,478		(1,815)
Net assets acquired	$	371,355	$	3,192	$	374,547


	Severance and Termination Benefits		Asset Impairments/ Disposal of Assets		Other Costs		Total
Accrual Activity
Liability at December 31, 2023	$	14,315	$	—	$	1,638	$	15,953
2024 charges	26,742		22,844		9,472		59,058

Cash (payments)/receipts	(23,893)		4,221		(8,729)		(28,401)
Asset writedowns/disposals	—		(27,065)		—		(27,065)
Foreign currency translation	191		—		(16)		175
Liability at September 29, 2024	$	17,355	$	—	$	2,365	$	19,720


	Foreign Currency Items		Defined Benefit Pension Items		Cash Flow Hedges		Accumulated Other Comprehensive Loss

Balance at December 31, 2023	$	(267,578)	$	(99,627)	$	943	$	(366,262)
Other comprehensive (loss) before reclassifications	(20,387)		(253)		(1,499)		(22,139)
Amounts reclassified from accumulated other comprehensive loss to net income	2,913		3,411		67		6,391

Other comprehensive (loss)/income	(17,474)		3,158		(1,432)		(15,748)

Balance at September 29, 2024	$	(285,052)	$	(96,469)	$	(489)	$	(382,010)

Balance at December 31, 2022	$	(338,316)	$	(90,973)	$	(794)	$	(430,083)
Other comprehensive income/(loss) before reclassifications	3,168		(4,045)		5,111		4,234
Amounts reclassified from accumulated other comprehensive loss to net income	2,033		6,599		(3,193)		5,439
Amounts reclassified from accumulated other comprehensive loss to property, plant, and equipment	—		—		300		300
Other comprehensive income	5,201		2,554		2,218		9,973

Balance at October 1, 2023	$	(333,115)	$	(88,419)	$	1,424	$	(420,110)


	Amount Reclassified from Accumulated Other Comprehensive Loss
	Three Months Ended				Nine Months Ended
Details about Accumulated Other Comprehensive Loss Components	September 29, 2024		October 1, 2023		September 29, 2024		October 1, 2023		Affected Line Item in the Condensed Consolidated Statements of Income
Foreign currency items
Loss on RTS Packaging investment(a)	$	—	$	(2,033)	$	—	$	(2,033)	Other income, net
Currency translation adjustment loss on Protexic sale(a)	—		—		(2,913)		—		(Loss)/Gain on divestiture of business and other assets
	—		(2,033)		(2,913)		(2,033)		Net income
Gains/(losses) on cash flow hedges
Foreign exchange contracts(b)	(513)		3,195		153		6,772		Net sales
Foreign exchange contracts(b)	(86)		(1,180)		(225)		(2,552)		Cost of sales
Commodity contracts(b)	(21)		—		(21)		(32)		Cost of sales
	(620)		2,015		(93)		4,188		Income before income taxes
Income tax impact	185		(558)		26		(995)		Provision for income taxes
	(435)		1,457		(67)		3,193		Net income
Defined benefit pension items
Pension-related loss upon purchase of remaining ownership interest in RTS Packaging joint venture(a)	—		(4,756)		—		(4,756)		Other income, net

Effect of settlement loss(c)	(18)		(16)		(529)		(765)		Non-operating pension costs
Amortization of defined benefit pension items(c)	(1,198)		(1,103)		(3,627)		(3,306)		Non-operating pension costs
	(1,216)		(5,875)		(4,156)		(8,827)		Income before income taxes
Income tax impact	108		1,478		745		2,228		Provision for income taxes
	(1,108)		(4,397)		(3,411)		(6,599)		Net income
Total reclassifications for the period	$	(1,543)	$	(4,973)	$	(6,391)	$	(5,439)	Net income


	Nine Months Ended
	September 29, 2024		October 1, 2023
Cash Flows from Operating Activities:
Net income	$	207,433	$	394,071
Adjustments to reconcile net income to net cash provided by operating activities:
Asset impairments	23,195		26,122
Depreciation, depletion and amortization	270,691		249,387

Share-based compensation expense	22,663		21,123
Equity in earnings of affiliated companies, net	(6,218)		(8,795)
Cash dividends from affiliated companies	5,624		7,881
Net gain on disposition of assets	(529)		(59,050)
Net loss/(gain) on divestiture of business and other assets	27,292		(54,842)
Remeasurement gain of investment in affiliated companies	(6,012)		—
Pension and postretirement plan expense	13,068		12,679
Pension and postretirement plan contributions	(14,680)		(10,311)
Net decrease in deferred tax liabilities	(17,109)		(14,451)
Change in assets and liabilities, net of effects from acquisitions, divestitures and foreign currency adjustments:
Trade accounts receivable	(182,626)		(84,342)
Inventories	(6,703)		277,389
Payable to suppliers	73,504		(125,712)
Prepaid expenses	(38,851)		(14,285)
Income taxes payable and other income tax items	23,274		9,549
Accrued expenses and other assets and liabilities	43,622		(9,536)
Net cash provided by operating activities	437,638		616,877
Cash Flows from Investing Activities:
Purchases of property, plant and equipment	(271,332)		(254,874)
Cost of acquisitions, net of cash acquired	(3,743)		(313,362)
Proceeds from the sale of business, net	81,212		31,147
Proceeds from the sale of assets, net	4,515		72,737
Proceeds from settlement of net investment hedge	9,068		—
Investment in affiliated companies	(10,000)		(7,500)
Other net investing activities	12,221		12,123
Net cash used by investing activities	(178,059)		(459,729)
Cash Flows from Financing Activities:
Net proceeds from issuance of debt	1,813,754		905,601
Principal repayment of debt	(133,644)		(878,513)
Net change in commercial paper	33,983		—
Net (decrease)/increase in book cash overdrafts	(3,078)		1,925


	September 29, 2024		December 31, 2023
Other Intangible Assets, gross:
Patents	$	29,305	$	29,304
Customer lists	1,228,536		1,282,689
Trade names	41,896		41,836
Proprietary technology	56,862		56,857
Other	6,703		6,916
Total Other Intangible Assets, gross	$	1,363,302	$	1,417,602

Accumulated Amortization:
Patents	$	(20,755)	$	(19,549)
Customer lists	(499,376)		(493,778)
Trade names	(22,949)		(18,845)
Proprietary technology	(31,919)		(29,013)
Other	(2,687)		(2,747)
Total Accumulated Amortization	(577,686)		(563,932)
Other Intangible Assets, net	$	785,616	$	853,670


	September 29, 2024		December 31, 2023
Commercial paper	$	33,983	$	—
Syndicated term loan due August 2028	497,510		572,025
1.800% notes due February 2025	399,734		399,149
4.450% notes due September 2026	496,358		—
2.250% notes due February 2027	298,800		298,421
4.600% notes due September 2029	594,184		—
3.125% notes due May 2030	596,812		596,480
2.850% notes due February 2032	496,169		495,785
5.000% notes due September 2034	689,490		—
5.750% notes due November 2040	536,274		536,246
Other foreign denominated debt	68,100		78,800
Finance lease obligations	84,220		88,994

Other debt	10,514		17,100
Total debt	4,802,148		3,083,000
Less current portion and short-term notes	(481,706)		(47,132)
Long-term debt	$	4,320,442	$	3,035,868


	Principal Amount		Issuance Costs and Discounts		Net Proceeds		Interest Rate	Maturity

2026 Notes	$	500,000	(3,697)		$	496,303	4.450%	September 1, 2026
2029 Notes	600,000		(5,851)		594,149		4.600%	September 1, 2029
2034 Notes	700,000		(10,542)		689,458		5.000%	September 1, 2034
Total	$	1,800,000	$	(20,090)	$	1,779,910


		Three Months Ended September 29, 2024						Three Months Ended October 1, 2023
		Before Tax Amount		Tax (Expense) Benefit		After Tax Amount		Before Tax Amount		Tax (Expense) Benefit		After Tax Amount
Foreign currency items:
	Net other comprehensive income/(loss) from foreign currency items	$	30,458	$	4,753	$	35,211	$	(50,389)	$	—	$	(50,389)
	Amounts reclassified from accumulated other comprehensive loss to net income(a)	—		—		—		2,033		—		2,033
	Net other comprehensive income/(loss) from foreign currency items	30,458		4,753		35,211		(48,356)		—		(48,356)
Defined benefit pension items:
	Other comprehensive (loss)/income before reclassifications	(82)		10		(72)		(1,137)		141		(996)
	Amounts reclassified from accumulated other comprehensive loss to net income(b)	1,216		(108)		1,108		5,875		(1,478)		4,397
	Net other comprehensive income/(loss) from defined benefit pension items	1,134		(98)		1,036		4,738		(1,337)		3,401
Gains and losses on cash flow hedges:
	Other comprehensive (loss)/income before reclassifications(c)	(465)		90		(375)		(369)		102		(267)
	Amounts reclassified from accumulated other comprehensive loss to net income(c)	620		(185)		435		(2,015)		558		(1,457)

	Net other comprehensive income/(loss) from cash flow hedges	155		(95)		60		(2,384)		660		(1,724)
Other comprehensive income/(loss)		$	31,747	$	4,560	$	36,307	$	(46,002)	$	(677)	$	(46,679)


		Nine Months Ended September 29, 2024						Nine Months Ended October 1, 2023
		Before Tax Amount		Tax (Expense) Benefit		After Tax Amount		Before Tax Amount		Tax (Expense) Benefit		After Tax Amount
Foreign currency items:
	Net other comprehensive (loss)/income from foreign currency items	$	(21,610)	$	1,223	$	(20,387)	$	3,168	$	—	$	3,168
	Amounts reclassified from accumulated other comprehensive loss to net income(a)	2,913		—		2,913		2,033		—		2,033
	Net other comprehensive (loss)/income from foreign currency items	(18,697)		1,223		(17,474)		5,201		—		5,201
Defined benefit pension items:
	Other comprehensive (loss)/income before reclassifications	(287)		34		(253)		(5,586)		1,541		(4,045)
	Amounts reclassified from accumulated other comprehensive loss to net income(b)	4,156		(745)		3,411		8,827		(2,228)		6,599
	Net other comprehensive income/(loss) from defined benefit pension items	3,869		(711)		3,158		3,241		(687)		2,554
Gains and losses on cash flow hedges:
	Other comprehensive (loss)/income before reclassifications(c)	(2,073)		574		(1,499)		6,511		(1,400)		5,111
	Amounts reclassified from accumulated other comprehensive loss to net income(c)	93		(26)		67		(4,188)		995		(3,193)
	Amounts reclassified from accumulated other comprehensive loss to property, plant and equipment(c)	—		—		—		401		(101)		300
	Net other comprehensive (loss)/income from cash flow hedges	(1,980)		548		(1,432)		2,724		(506)		2,218
Other comprehensive (loss)/income		$	(16,808)	$	1,060	$	(15,748)	$	11,166	$	(1,193)	$	9,973


	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Goodwill at December 31, 2023	$	1,056,241	$	506,406	$	248,007	$	1,810,654

Divestitures	—		—		(16,559)		(16,559)
Foreign currency translation	(371)		(5,578)		275		(5,674)
Measurement period adjustments	(7,454)		—		—		(7,454)
Goodwill at September 29, 2024	$	1,048,416	$	500,828	$	231,723	$	1,780,967


Balance Sheet Line Item	September 29, 2024		December 31, 2023
Payable to suppliers(a)	$	48,035	$	35,847


	September 29, 2024				December 31, 2023
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, net of current portion	$	4,320,442	$	4,255,117	$	3,035,868	$	2,890,009


Currency	Action	Quantity
Colombian peso	purchase	5,942,202
Mexican peso	purchase	140,315
Polish zloty	purchase	32,938
Danish krone	purchase	11,593
Swedish krona	sell	(2,124)
Czech koruna	purchase	25,869
Canadian dollar	purchase	8,239
Euro	purchase	593
Turkish lira	purchase	11,092
Brazilian real	purchase	13,088
British pound	sell	(331)


Description	Balance Sheet Location	September 29, 2024		December 31, 2023
Derivatives designated as hedging instruments:
Commodity Contracts	Prepaid expenses	$	32	$	67

Commodity Contracts	Accrued expenses and other	(36)		(108)

Foreign Exchange Contracts	Prepaid expenses	480		2,525

Foreign Exchange Contracts	Accrued expenses and other	(1,134)		(1,024)

Net Investment Hedge	Prepaid expense	4,836		5,567

Net Investment Hedge	Other liabilities	(23,777)		(10,640)
Derivatives not designated as hedging instruments:
Commodity Contracts	Prepaid expenses	99		12
Commodity Contracts	Other assets	346		—
Commodity Contracts	Accrued expenses and other	(3,265)		(6,782)
Commodity Contracts	Other liabilities	(33)		—
Foreign Exchange Contracts	Prepaid expenses	52		130

Foreign Exchange Contracts	Accrued expenses and other	(382)		(159)


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 September 29, 2024
Foreign Exchange Contracts	$	(444)	Net sales	$	(513)
			Cost of sales	(86)
Commodity Contracts	(21)		Cost of sales	(21)

Three-month period ended October 1, 2023
Foreign Exchange Contracts	$	(509)	Net sales	$	3,195
			Cost of sales	(1,180)
Commodity Contracts	140		Cost of sales	—


	Nine-month period ended September 29, 2024				Nine-month period ended October 1, 2023
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	$	153	$	(246)	$	6,772	$	(2,584)















Gain or (loss) on cash flow hedging relationships:
Foreign exchange contracts:
Amount of gain/(loss) reclassified from accumulated other comprehensive income into net income	$	153	$	(225)	$	6,772	$	(2,552)


Commodity contracts:
Amount of gain reclassified from accumulated other comprehensive income into net income	$	—	$	(21)	$	—	$	(32)


Level 1 –			Observable inputs such as quoted market prices in active markets;
Level 2 –			Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
Level 3 –			Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.


Description	September 29, 2024		Assets measured at NAV		Level 1		Level 2		Level 3

Hedge derivatives, net:
Commodity contracts	$	(4)	$	—	$	—	$	(4)	$	—
Foreign exchange contracts	(654)		—		—		(654)		—
Net investment hedge	(18,941)		—		—		(18,941)		—
Non-hedge derivatives, net:
Commodity contracts	(2,853)		—		—		(2,853)		—
Foreign exchange contracts	(330)		—		—		(330)		—

Description	December 31, 2023		Assets measured at NAV		Level 1		Level 2		Level 3
Hedge derivatives, net:
Commodity contracts	$	(41)	$	—	$	—	$	(41)	$	—
Foreign exchange contracts	1,502		—		—		1,502		—
Net investment hedge	(5,073)		—		—		(5,073)		—
Non-hedge derivatives, net:
Commodity contracts	(6,770)		—		—		(6,770)		—
Foreign exchange contracts	(29)		—		—		(29)		—


Classification	Balance Sheet Location	September 29, 2024		December 31, 2023
Lease Assets
Operating lease assets	Right of Use Asset - Operating Leases	$	314,611	$	314,944
Finance lease assets	Other Assets	90,951		94,026
Total lease assets		$	405,562	$	408,970

Lease Liabilities
Current operating lease liabilities	Accrued expenses and other	$	51,702	$	54,803
Current finance lease liabilities	Notes payable and current portion of debt	23,986		18,791
Total current lease liabilities		75,688		73,594

Noncurrent operating lease liabilities	Noncurrent Operating Lease Liabilities	269,251		265,454
Noncurrent finance lease liabilities	Long-term Debt, Net of Current Portion	60,234		70,203
Total noncurrent lease liabilities		329,485		335,657

Total lease liabilities		$	405,173	$	409,251


		Three Months Ended				Nine Months Ended
Lease Cost		September 29, 2024		October 1, 2023		September 29, 2024		October 1, 2023
Operating lease cost	(a)	$	14,653	$	14,075	$	44,242	$	41,377
Finance lease cost:
Amortization of lease asset	(a)	3,640		3,468		10,558		10,187
Interest on lease liabilities	(b)	1,017		1,146		3,095		3,519
Variable lease cost	(a) (c)	11,691		9,525		34,719		30,198
Impairment charges		281		—		281		—
Total lease cost		$	31,282	$	28,214	$	92,895	$	85,281


	September 29, 2024		December 31, 2023

Contract Assets	$	57,513	$	54,334
Contract Liabilities	(26,841)		(24,973)


	September 29, 2024				December 31, 2023
	Contract Asset		Contract Liability		Contract Asset		Contract Liability
Beginning Balance	$	54,334	$	(24,973)	$	56,008	$	(22,423)
Acquired/sold as part of a business combination/divestiture	—		194		—		(1,436)
Revenue deferred or rebates accrued	—		(44,757)		—		(53,464)
Recognized as revenue			10,384				11,761
Rebates paid to customers	—		32,311		—		40,589
Increases due to rights to consideration for customer specific goods produced, but not billed during the period	57,513		—		54,334		—
Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combinations	(54,334)		—		(56,008)		—



Ending Balance	$	57,513	$	(26,841)	$	54,334	$	(24,973)


Three-month period ended September 29, 2024	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	754,314	$	355,492	$	90,483	$	1,200,289
Europe	114,943		91,138		15,952		222,033
Canada	32,969		22,969		—		55,938
Asia	25,492		55,888		572		81,952
Other	55,793		59,595		266		115,654
Total	$	983,511	$	585,082	$	107,273	$	1,675,866


Nine-month period ended September 29, 2024	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	2,129,839	$	1,073,073	$	279,783	$	3,482,695
Europe	337,435		285,266		44,970		667,671
Canada	99,166		73,155		—		172,321
Asia	75,886		166,774		1,284		243,944
Other	179,491		180,644		10,122		370,257
Total	$	2,821,817	$	1,778,912	$	336,159	$	4,936,888


SEGMENT FINANCIAL INFORMATION
	Three Months Ended				Nine Months Ended
	September 29, 2024		October 1, 2023		September 29, 2024		October 1, 2023
Net sales:
Consumer Packaging	$	983,511	$	984,840	$	2,821,817	$	2,914,168
Industrial Paper Packaging	585,082		580,035		1,778,912		1,781,033
Total reportable segments	1,568,593		1,564,875		4,600,729		4,695,201
All Other	107,273		145,544		336,159		450,291
Net Sales	$	1,675,866	$	1,710,419	$	4,936,888	$	5,145,492

Intersegment sales(1):
Consumer Packaging	$	4,163	$	2,756	$	12,237	$	7,127
Industrial Paper Packaging	26,678		3,032		81,982		77,163
Total reportable segments	30,841		5,788		94,219		84,290
All Other	1,875		1,740		5,525		6,374
Intersegment Sales	$	32,716	$	7,528	$	99,744	$	90,664

Segment operating profit(2):
Consumer Packaging	$	123,021	$	116,800	$	328,190	$	314,408
Industrial Paper Packaging	70,206		75,006		203,008		256,413
Segment operating profit	$	193,227	$	191,806	$	531,198	$	570,821


	Three Months Ended
(Dollars in thousands)	September 29, 2024		October 1, 2023		% Change
Net sales:
Consumer Packaging	$	983,511	$	984,840	(0.1)	%
Industrial Paper Packaging	585,082		580,035		0.9	%
Total reportable segments	1,568,593		1,564,875		0.2	%
All Other	107,273		145,544		(26.3)	%
Net sales	$	1,675,866	$	1,710,419	(2.0)	%


	For the three-month period ended September 29, 2024
Dollars in thousands, except per share data	Operating Profit		Income Before Income Taxes		Provision for Income Taxes		Net Income Attributable to Sonoco		Diluted EPS
As Reported	$	128,132	$	69,556	$	21,154	$	50,921	$	0.51
Acquisition, integration and divestiture-related costs1	19,623		49,804		6,512		43,292		0.44
Changes in LIFO inventory reserves	790		790		199		591		0.01
Amortization of acquisition intangibles	22,645		22,645		5,563		17,082		0.17
Restructuring/Asset impairment charges	8,190		8,190		1,497		6,560		0.07
Loss on divestiture of business and other assets	31,770		31,770		454		31,316		0.31

Non-operating pension costs	—		2,947		738		2,209		0.02
Net gains from derivatives	(210)		(210)		(53)		(157)		—
Other adjustments	(273)		(695)		3,233		(3,928)		(0.04)
Total adjustments	82,535		115,241		18,143		96,965		0.98
Adjusted	$	210,667	$	184,797	$	39,297	$	147,886	$	1.49
Due to rounding, individual items may not sum appropriately.
1 Acquisition, integration and divestiture related costs include losses on treasury lock derivative instruments and amortization of financing fees totaling $30,181 related to debt instruments associated with the financing of the pending Eviosys acquisition. These amortization costs are included in “Interest expense” in the Company’s Condensed Consolidated Statements of Income.