SON 10-Q

Sonoco Products Co (SON)

10-Q 2025-07-28 For: 2025-06-29

View Original

Added on April 08, 2026

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


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 – June 29, 2025 (unaudited) and December 31, 2024 (unaudited)	3

	Condensed Consolidated Statements of Income – Three and Six Months Ended June 29, 2025 (unaudited) and June 30, 2024 (unaudited)	4

	Condensed Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 29, 2025 (unaudited) and June 30, 2024 (unaudited)	5

	Condensed Consolidated Statements of Changes in Total Equity – Three and Six Months Ended June 29, 2025 (unaudited) and June 30, 2024 (unaudited)	6

	Condensed Consolidated Statements of Cash Flows – Six Months Ended June 29, 2025 (unaudited) and June 30, 2024 (unaudited)	8

	Notes to Condensed Consolidated Financial Statements (unaudited)	9



Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	46

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	69

Item 4.	Controls and Procedures.	70

PART II. OTHER INFORMATION		71

Item 1.	Legal Proceedings.	71



Item 1A.	Risk Factors.	71

Item 5.	Other Information.	73

Item 6.	Exhibits.	73


	June 29, 2025		December 31, 2024*
Assets
Current Assets
Cash and cash equivalents	$	329,800	$	431,010
Trade accounts receivable, net of allowances	1,055,765		907,526
Other receivables	211,963		175,877
Inventories, net:
Finished and in process	651,460		494,090
Materials and supplies	631,774		522,049
Prepaid expenses	155,856		197,134

Current assets of discontinued operations	—		450,874
Total Current Assets	3,036,618		3,178,560
Property, Plant and Equipment, Net	2,883,135		2,718,747
Goodwill	2,678,045		2,525,657
Other Intangible Assets, Net	2,755,292		2,586,698
Deferred Income Taxes	94,408		17,371
Right of Use Asset-Operating Leases	318,036		307,688
Other Assets	204,890		208,759
Non-current assets of discontinued operations	—		964,310
Total Assets	$	11,970,424	$	12,507,790
Liabilities and Equity
Current Liabilities
Payable to suppliers	$	1,214,260	$	1,130,500
Accrued expenses and other	600,988		604,455
Notes payable and current portion of long-term debt	436,880		2,054,525
Accrued taxes	171,046		6,755

Current liabilities of discontinued operations	—		242,056
Total Current Liabilities	2,423,174		4,038,291
Long-term Debt, Net of Current Portion	4,986,643		4,985,496
Noncurrent Operating Lease Liabilities	268,181		258,735
Pension and Other Postretirement Benefits	183,926		180,827
Deferred Income Taxes	573,916		583,470
Other Liabilities	283,751		60,847
Non-current liabilities of discontinued operations	—		113,911
Total Liabilities	8,719,591		10,221,577
Commitments and Contingencies (See Note 18)

Sonoco Shareholders’ Equity
Common stock, no par value
Authorized 300,000 shares; 98,628 and 98,260 shares issued and outstanding at June 29, 2025 and December 31, 2024, respectively	7,175		7,175
Capital in excess of stated value	183,339		183,250
Accumulated other comprehensive income/(loss)	17,363		(502,734)
Retained earnings	3,027,647		2,583,923
Total Sonoco Shareholders’ Equity	3,235,524		2,271,614
Noncontrolling Interests	15,309		14,599
Total Equity	3,250,833		2,286,213
Total Liabilities and Equity	$	11,970,424	$	12,507,790


	Three Months Ended				Six Months Ended
	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
Net sales	$	1,910,441	$	1,278,801	$	3,619,669	$	2,587,437
Cost of sales	1,504,164		993,558		2,859,705		2,031,029
Gross profit	406,277		285,243		759,964		556,408
Selling, general and administrative expenses	218,775		175,947		427,838		343,530
Restructuring/Asset impairment charges	9,752		17,963		23,333		48,973
(Loss)/Gain on divestiture of business	(2,083)		4,478		(6,266)		4,478
Operating profit	175,667		95,811		302,527		168,383
Other (expense)/income, net	(6,559)		5,867		(13,076)		5,867
Non-operating pension costs	2,982		4,170		6,103		7,465
Interest expense	64,367		28,674		120,394		58,838
Interest income	4,122		3,059		11,470		6,192

Income from continuing operations before income taxes	105,881		71,893		174,424		114,139
Provision for income taxes	39,500		16,756		60,647		24,627
Income before equity in earnings of affiliates	66,381		55,137		113,777		89,512
Equity in earnings of affiliates, net of tax	2,270		2,274		4,191		3,411
Net income from continuing operations	68,651		57,411		117,968		92,923
Net income from discontinued operations	424,548		33,540		429,720		63,301
Net income	493,199		90,951		547,688		156,224
Net loss/(income) from continuing operations attributable to noncontrolling interests	224		(110)		164		(158)
Net income from discontinued operations attributable to noncontrolling interests	—		(30)		—		(78)
Net income attributable to Sonoco	$	493,423	$	90,811	$	547,852	$	155,988

Weighted average common shares outstanding:
Basic	99,171		98,671		99,055		98,583
Diluted	99,539		99,241		99,453		99,199
Per common share:
Basic earnings per common share:
Continuing operations	$	0.69	$	0.58	$	1.19	$	0.94
Discontinued operations	4.28		0.34		4.34		0.64
Basic earnings per share attributable to Sonoco	$	4.97	$	0.92	$	5.53	$	1.58
Diluted earnings per common share:
Continuing operations	$	0.69	$	0.58	$	1.19	$	0.93
Discontinued operations	4.27		0.34		4.32		0.64
Diluted earnings per share attributable to Sonoco	$	4.96	$	0.92	$	5.51	$	1.57


☒			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


*			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.”).


	Total Equity			Common Shares			Capital in Excess of Stated Value		Accumulated Other Comprehensive Income/(Loss)		Retained Earnings		Noncontrolling Interests
				Outstanding	Amount
December 31, 2024	$	2,286,213		98,260	$	7,175	$	183,250	$	(502,734)	$	2,583,923	$	14,599
Net income	54,489										54,429		60
Other comprehensive income/(loss):
Translation gain/(loss)	175,839								175,864				(25)
Defined benefit plan adjustment, net of tax	544								544
Derivative financial instruments, net of tax	1,757								1,757
Other comprehensive income/(loss)	178,140								178,165				(25)
Divestiture of non-controlling interest	(637)												(637)
Dividends	(51,558)										(51,558)
Dividends paid to noncontrolling interests	(243)												(243)
Issuance of stock awards	273			588			273
Shares repurchased	(10,573)			(220)			(10,573)
Share-based compensation	5,828						5,828

March 30, 2025	$	2,461,932		98,628	$	7,175	$	178,778	$	(324,569)	$	2,586,794	$	13,754
Net income/(loss)	493,199										493,423		(224)
Other comprehensive income/(loss):
Translation gain	339,452								337,673				1,779
Defined benefit plan adjustment, net of tax	2,935								2,935
Derivative financial instruments, net of tax	1,324								1,324
Other comprehensive income	343,711								341,932				1,779

Dividends	(52,570)										(52,570)

Issuance of stock awards	298			—			298
Shares repurchased	(3)			—			(3)
Share-based compensation	4,145						4,145
Other	121						121
June 29, 2025	$	3,250,833	3,250,833	98,628	$	7,175	$	183,339	$	17,363	$	3,027,647	$	15,309


	December 31, 2024
Cash and cash equivalents	$	12,050
Trade accounts receivable, net of allowances of $2,582 at December 31, 2024	209,379
Other receivables	46,001
Inventories, net:
Finished and in process	80,573
Materials and supplies	94,083
Prepaid expenses	8,788
Current assets of discontinued operations	$	450,874
Property, plant and equipment, net of accumulated depreciation of $465,923 at December 31, 2024	262,662
Goodwill	502,621
Other intangible assets, net of accumulated amortization of $206,437 and December 31, 2024	103,593
Long-term deferred income taxes	262
Right of use asset-operating leases	75,855
Other assets	19,317
Non-current assets of discontinued operations	$	964,310
Payable to suppliers	172,720
Accrued expenses and other	62,562
Notes payable and current portion of long-term debt	6,774
Current liabilities of discontinued operations	$	242,056
Long-term debt	29,850
Noncurrent operating lease liabilities	67,789

Deferred income taxes	15,928
Other liabilities	344
Non-current liabilities of discontinued operations	$	113,911


	Initial Preliminary Allocation		Measurement Period Adjustments		Updated Preliminary Allocation
Trade accounts receivable	$	300,385	—		$	300,385
Other receivables	114,634		1,079		115,713
Inventories	445,945		404		446,349
Prepaid expenses	47,509		(2,977)		44,532
Property, plant and equipment	1,057,779		(28,434)		1,029,345
Right of use asset - operating leases	43,566		—		43,566
Other intangible assets	1,967,678		10,859		1,978,537
Goodwill	1,285,518		(32,335)		1,253,183
Long-term deferred income taxes	39,023		(388)		38,635
Other assets	3,330		24		3,354
Payable to suppliers	(518,766)		1,672		(517,094)
Accrued expenses and other	(168,529)		324		(168,205)
Accrued wages and other compensation	(41,749)		(57)		(41,806)

Notes payable and current portion of long-term debt	(76,438)		(5)		(76,443)
Noncurrent operating lease liabilities	(32,022)		—		(32,022)
Pension and other postretirement benefits	(51,849)		—		(51,849)
Long-term debt	—		(34)		(34)
Deferred income taxes	(599,941)		32,947		(566,994)
Other long-term liabilities	(16,714)		393		(16,321)
Noncontrolling interests	(9,533)		—		(9,533)
Net assets acquired	$	3,789,826	$	(16,528)	$	3,773,298


Pro Forma Supplemental Information	Three Months Ended		Six Months Ended
Consolidated	June 30, 2024		June 30, 2024
Net sales	$	1,880,085	$	3,719,655
Net income from continuing operations	$	78,215	$	86,361
Net income attributable to Sonoco1	$	111,725	$	149,584


	Severance and Termination Benefits		Asset Impairments/ Disposal of Assets		Other Costs		Total
Accrual Activity
Liability at December 31, 2024	$	24,034	$	—	$	909	$	24,943
2025 charges	13,365		6,482		3,486		23,333

Cash (payments)/receipts	(19,370)		88		(2,872)		(22,154)
Asset write downs/disposals	—		(6,570)		—		(6,570)
Foreign currency translation	903		—		318		1,221
Liability at June 29, 2025	$	18,932	$	—	$	1,841	$	20,773


	Foreign Currency Items		Defined Benefit Pension Items		Gains and Losses on Cash Flow Hedges		Accumulated Other Comprehensive Income/(Loss)

Balance at December 31, 2024	$	(410,931)	$	(90,613)	$	(1,190)	$	(502,734)
Other comprehensive income before reclassifications	461,790		2,032		4,246		468,068
Amounts reclassified from accumulated other comprehensive income/(loss) to net income	51,747		1,447		(1,165)		52,029

Other comprehensive income	513,537		3,479		3,081		520,097

Balance at June 29, 2025	$	102,606	$	(87,134)	$	1,891	$	17,363

Balance at December 31, 2023	$	(267,578)	$	(99,627)	$	943	$	(366,262)
Other comprehensive loss before reclassifications	(55,598)		(181)		(1,124)		(56,903)
Amounts reclassified from accumulated other comprehensive income/(loss) to net income	2,913		2,303		(368)		4,848

Other comprehensive (loss)/income	(52,685)		2,122		(1,492)		(52,055)

Balance at June 30, 2024	$	(320,263)	$	(97,505)	$	(549)	$	(418,317)


	Amount Reclassified from Accumulated Other Comprehensive Income/(Loss)
	Three Months Ended				Six Months Ended
Details about Accumulated Other Comprehensive Income/(Loss) Components	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024		Affected Line Item in the Condensed Consolidated Statements of Income
Foreign currency items
Currency translation adjustment loss on TFP sale(a)	$	(47,955)	$	—	$	(47,955)	$	—	Net income from discontinued operations
Currency translation adjustment loss on Venezuela sale(a)	—		—		(3,792)		—		(Loss)/Gain on divestiture of business
Currency translation adjustment loss on Protexic sale(a)	—		(2,913)		—		(2,913)		(Loss)/Gain on divestiture of business
	(47,955)		(2,913)		(51,747)		(2,913)		Net income
Gains/(losses) on cash flow hedges
Foreign exchange contracts(b)	1,368		230		1,767		666		Net sales
Foreign exchange contracts(b)	(151)		(64)		(192)		(139)		Cost of sales

	1,217		166		1,575		527		Income from continuing operations before income taxes
Income tax impact	(319)		(147)		(410)		(159)		Provision for income taxes
	898		19		1,165		368		Net income
Defined benefit pension items


Effect of settlement loss(c)	—		(511)		—		(511)		Non-operating pension costs
Amortization of defined benefit pension items(c)	(842)		(1,199)		(1,898)		(2,429)		Non-operating pension costs
	(842)		(1,710)		(1,898)		(2,940)		Income from continuing operations before income taxes
Income tax impact	204		382		451		637		Provision for income taxes
	(638)		(1,328)		(1,447)		(2,303)		Net income
Total reclassifications for the period	$	(47,695)	$	(4,222)	$	(52,029)	$	(4,848)	Net income


	June 29, 2025		December 31, 2024
Other Intangible Assets, gross:
Patents	$	29,596	$	28,941
Customer lists	2,929,093		2,679,372
Trade names	40,543		38,623
Proprietary technology	244,220		226,936
Other	2,842		2,339
Total Other Intangible Assets, gross	$	3,246,294	$	2,976,211

Accumulated Amortization:
Patents	$	(17,230)	$	(15,955)
Customer lists	(418,524)		(332,680)
Trade names	(15,526)		(13,239)
Proprietary technology	(37,876)		(26,203)
Other	(1,846)		(1,436)
Total Accumulated Amortization	(491,002)		(389,513)
Other Intangible Assets, net	$	2,755,292	$	2,586,698


	June 29, 2025		December 31, 2024
Commercial paper	$	354,600	$	—
364-Day term loan due December 2025	—		1,493,568
Term loan due December 2026	698,759		698,167
Syndicated term loan due August 2028	497,993		497,674
1.800% notes due February 2025	—		399,933
4.450% notes due September 2026	497,796		496,869
2.250% notes due February 2027	299,183		298,930
4.600% notes due September 2029	595,099		594,519
3.125% notes due May 2030	597,239		596,958
2.850% notes due February 2032	496,559		496,302
5.000% notes due September 2034	690,322		689,802
5.750% notes due November 2040	536,298		536,282
Other foreign denominated debt	73,514		155,048
Finance lease obligations	68,925		67,628

Other debt	17,236		18,341
Total debt	5,423,523		7,040,021
Less: Notes payable and current portion of long-term debt	(436,880)		(2,054,525)
Long-term debt	$	4,986,643	$	4,985,496


Currency	Action	Quantity
USD Contracts
Colombian peso	purchase	13,705,531
Mexican peso	purchase	205,163
Danish krone	purchase	78,453
Polish zloty	purchase	69,392
Czech koruna	purchase	57,865
Turkish lira	purchase	63,099
Euro	purchase	1,870
Canadian dollar	purchase	1,425
Swedish krona	sell	(2,788)
British pound	sell	(6,274)
Euro Contracts
Euro	purchase	23,511
British pound	sell	(722)
USD	sell	(2,588)
Hungarian forint	sell	(2,556,665)
Swiss franc	sell	(216)


Currency	Action	Quantity
USD Contracts
Colombian peso	purchase	68,259,025
Mexican peso	purchase	290,402
Indonesian rupiah	purchase	8,449,165
Thai baht	sell	(20,283)
Euro	sell	(11)
Canadian dollar	purchase	4,212
Turkish lira	purchase	28,304
British pound	sell	(110)
Euro Contracts
British pound	sell	(97,648)
Polish zloty	sell	(143,810)
Thai baht	sell	(536,362)


	Three Months Ended June 29, 2025						Three Months Ended June 30, 2024
	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	$	241,272	$	48,446	$	289,718	$	(35,280)	$	(999)	$	(36,279)
Amounts reclassified from accumulated other comprehensive income/(loss) to net income(a)	47,955		—		47,955		2,913		—		2,913
Net other comprehensive income/(loss) from foreign currency items	289,227		48,446		337,673		(32,367)		(999)		(33,366)
Defined benefit pension items:
Other comprehensive income/(loss) before reclassifications	3,025		(728)		2,297		671		80		751
Amounts reclassified from accumulated other comprehensive income/(loss) to net income(b)	842		(204)		638		1,710		(382)		1,328
Net other comprehensive income/(loss) from defined benefit pension items	3,867		(932)		2,935		2,381		(302)		2,079
Gains and losses on cash flow hedges:
Other comprehensive income/(loss) before reclassifications	2,528		(306)		2,222		(2,144)		502		(1,642)
Amounts reclassified from accumulated other comprehensive income/(loss) to net income(c)	(1,217)		319		(898)		(166)		147		(19)

Net other comprehensive income/(loss) from cash flow hedges	1,311		13		1,324		(2,310)		649		(1,661)
Other comprehensive income/(loss)	$	294,405	$	47,527	$	341,932	$	(32,296)	$	(652)	$	(32,948)


	Six Months Ended June 29, 2025						Six Months Ended June 30, 2024
	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	$	403,100	$	58,690	$	461,790	$	(52,068)	$	(3,530)	$	(55,598)
Amounts reclassified from accumulated other comprehensive income/(loss) to net income(a)	51,747		—		51,747		2,913		—		2,913
Net other comprehensive income/(loss) from foreign currency items	454,847		58,690		513,537		(49,155)		(3,530)		(52,685)
Defined benefit pension items:
Other comprehensive income/(loss) before reclassifications	2,679		(647)		$	2,032	(205)		24		(181)
Amounts reclassified from accumulated other comprehensive income/(loss) to net income(b)	1,898		(451)		1,447		2,940		(637)		2,303
Net other comprehensive (loss)/income from defined benefit pension items	4,577		(1,098)		3,479		2,735		(613)		2,122
Gains and losses on cash flow hedges:
Other comprehensive (loss)/income before reclassifications	5,243		(997)		$	4,246	(1,608)		484		(1,124)
Amounts reclassified from accumulated other comprehensive income/(loss) to net income(c)	(1,575)		410		(1,165)		(527)		159		(368)

Net other comprehensive income/(loss) from cash flow hedges	3,668		(587)		3,081		(2,135)		643		(1,492)
Other comprehensive income/(loss)	$	463,092	$	57,005	$	520,097	$	(48,555)	$	(3,500)	$	(52,055)


	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Goodwill at December 31, 2024	$	1,807,971	$	486,636	$	231,050	$	2,525,657

Divestitures	—		(2,043)		—		(2,043)

Measurement period adjustments	(32,335)		—		—		(32,335)
Foreign currency translation	166,865		22,215		(2,314)		186,766
Goodwill at June 29, 2025	$	1,942,501	$	506,808	$	228,736	$	2,678,045


Balance Sheet Line Item	June 29, 2025		December 31, 2024
Payable to suppliers(a)	$	28,341	$	28,496


	June 29, 2025				December 31, 2024
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, net of current portion	$	4,986,643	$	4,865,699	$	4,985,496	$	4,800,455


Description	Balance Sheet Location	June 29, 2025		December 31, 2024
Derivatives designated as hedging instruments:
Commodity Contracts	Prepaid expenses	$	1,311	$	671

Commodity Contracts	Accrued expenses and other	(1,569)		(19)

Foreign Exchange Contracts	Prepaid expenses	3,134		2,068

Foreign Exchange Contracts	Accrued expenses and other	(1,963)		(3,909)

Net investment hedge	Prepaid expenses	21,821		26,833
Net investment hedge	Other assets	—		1,845
Net investment hedge	Other liabilities	(240,061)		(16,759)
Derivatives not designated as hedging instruments:
Commodity Contracts	Prepaid expenses	1,365		961
Commodity Contracts	Other assets	168		—
Commodity Contracts	Accrued expenses and other	(216)		(574)
Commodity Contracts	Other liabilities	(14)		—
Foreign Exchange Contracts	Prepaid expenses	3,275		(59)

Foreign Exchange Contracts	Accrued expenses and other	(236)		(3,022)


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 June 29, 2025
Foreign Exchange Contracts	$	2,902	Net sales	$	1,368
			Cost of sales	(151)
Commodity Contracts	(374)		Cost of sales	—

Three-month period ended June 30, 2024
Foreign Exchange Contracts	$	2,206	Net sales	$	230
			Cost of sales	(64)
Commodity Contracts	62		Cost of sales	—


	Six-month period ended June 29, 2025				Six-month period ended June 30, 2024
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	$	1,767	$	(192)	$	666	$	(139)















Gain or (loss) on cash flow hedging relationships:
Foreign exchange contracts:
Amount of gain/(loss) reclassified from accumulated other comprehensive income into net income	$	1,767	$	(192)	$	666	$	(139)


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


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	June 29, 2025		Assets measured at NAV		Level 1		Level 2		Level 3

Hedge derivatives, net:
Commodity contracts	$	(258)	$	—	$	—	$	(258)	$	—
Foreign exchange contracts	1,171		—		—		1,171		—
Net investment hedge	(218,240)		—		—		(218,240)		—
Non-hedge derivatives, net:
Commodity contracts	1,303		—		—		1,303		—
Foreign exchange contracts	3,039		—		—		3,039		—

Description	December 31, 2024		Assets measured at NAV		Level 1		Level 2		Level 3
Hedge derivatives, net:
Commodity contracts	$	652	$	—	$	—	$	652	$	—
Foreign exchange contracts	(1,841)		—		—		(1,841)		—
Net investment hedge	11,919		—		—		11,919		—
Non-hedge derivatives, net:
Commodity contracts	387		—		—		387		—
Foreign exchange contracts	(3,081)		—		—		(3,081)		—


Classification	Balance Sheet Location	June 29, 2025		December 31, 2024
Lease Assets
Operating lease assets	Right of Use Asset - Operating Leases	$	318,036	$	307,688
Finance lease assets	Other Assets	73,487		76,831
Total lease assets		$	391,523	$	384,519

Lease Liabilities
Current operating lease liabilities	Accrued expenses and other	$	56,851	$	52,648
Current finance lease liabilities	Notes payable and current portion of long-term debt	24,846		22,284
Total current lease liabilities		$	81,697	$	74,932

Noncurrent operating lease liabilities	Noncurrent Operating Lease Liabilities	$	268,181	$	258,735
Noncurrent finance lease liabilities	Long-term Debt, net of current portion	44,079		45,344
Total noncurrent lease liabilities		$	312,260	$	304,079

Total lease liabilities		$	393,957	$	379,011


		Three Months Ended				Six Months Ended
Lease Cost		June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
Operating lease cost	(a)	$	16,340	$	10,913	$	31,824	$	24,283
Finance lease cost:
Amortization of lease asset	(a)	3,285		3,126		6,287		6,211
Interest on lease liabilities	(b)	793		887		1,493		1,808
Variable lease cost	(a) (c)	11,269		8,704		23,691		15,301
Impairment charges	(d)	545		—		1,178		—
Total lease cost		$	32,232	$	23,630	$	64,473	$	47,603


	June 29, 2025		December 31, 2024

Contract Assets	$	98,907	$	67,062
Contract Liabilities	(42,515)		(60,024)


	June 29, 2025				December 31, 2024
	Contract Asset		Contract Liability		Contract Asset		Contract Liability
Beginning Balance	$	67,062	$	(60,024)	$	14,754	$	(15,252)
Acquired as part of a business combination	—		—		62,439		(47,478)
Revenue deferred or rebates accrued	—		(18,369)		—		(25,736)
Recognized as revenue	—		477		—		2,341
Rebates paid to customers	—		35,401		—		26,101
Increases due to rights to consideration for customer specific goods produced, but not billed during the period	98,907		—		67,062		—
Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combination	(67,062)		—		(77,193)		—



Ending Balance	$	98,907	$	(42,515)	$	67,062	$	(60,024)


Three-month period ended June 29, 2025	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary Geographical Markets:
United States	$	467,148	$	373,341	$	79,214	$	919,703
Europe, Middle East and Africa (EMEA)	707,327		95,032		15,350		817,709
Canada	4,404		23,312		—		27,716
Asia Pacific	23,675		36,582		345		60,602
Other	24,479		59,972		260		84,711
Total	$	1,227,033	$	588,239	$	95,169	$	1,910,441


SEGMENT FINANCIAL INFORMATION
Three-month period ended June 29, 2025	Consumer Packaging		Industrial Paper Packaging		Total Reportable Segments
Sales from external customers	$	1,227,033	$	588,239	$	1,815,272
Intersegment sales(1)	2,548		26,522		29,070
	1,229,581		614,761		1,844,342
Reconciliation of sales
Other sales(2)					96,341
Elimination of intersegment sales					(30,242)
Total consolidated sales					1,910,441
Less:(3)
Cost of sales(4)	(989,484)		(442,971)
Other segment items(5)	(79,744)		(90,559)
Segment operating profit	$	160,353	$	81,231	$	241,584

Other segment disclosures:
Equity in earnings of affiliates, net of tax	$	170	$	2,100
Depreciation and amortization(6)	$	52,801	$	29,838


(1)			Intersegment sales are recorded at a market-related transfer price.
(2)			Sales from businesses below the quantitative threshold are attributable to the group of businesses within All Other.
(3)			The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(4)			Cost of sales of reportable segments excludes certain costs, primarily changes in LIFO inventory reserves, net gains or losses from derivatives, and acquisition, integration and divestiture-related costs.
(5)			Other segment items consists of:
			Consumer Packaging: Labor and benefits, consulting and professional services, travel, communication, facilities and supplies. Industrial Paper Packaging: Labor and benefits, consulting and professional services, travel, communication, facilities and supplies.
(6)			Represents significant segment expenses that are regularly provided to the CODM and are included in cost of sales and other segment items within segment operating profit.


(1)			Operating profit from segments below the quantitative threshold are attributable to the group of businesses within All Other.
(2)			Other corporate costs represent recurring operating expenses previously allocated to TFP that will remain with Sonoco subsequent to the divestiture.
(3)			Primarily consists of highly inflationary accounting in Turkey and other miscellaneous charges in both 2025 and 2024.
(4)			In 2025, these expenses relate to charges from third-party financial institutions related to the Company’s centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle, primarily within the Consumer Packaging segment. In 2024, the income related primarily to the fair value remeasurement of an equity investment.


(1)			Other represents depreciation and amortization expense for the All Other group of businesses and total amortization of acquisition intangibles for Sonoco, excluding discontinued operations.


	Three Months Ended
(Dollars in thousands)	June 29, 2025		June 30, 2024		% Change
Net sales:
Consumer Packaging	$	1,227,033	$	583,051	110.5	%
Industrial Paper Packaging	588,239		600,770		(2.1)	%
Total reportable segments	1,815,272		1,183,821		53.3	%
All Other	95,169		94,980		0.2	%
Net sales	$	1,910,441	$	1,278,801	49.4	%