What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-08-01 compared with 2024-05-01 · 415 added, 200 removed, 804 unchanged (43% of the section changed)

39 unchanged sentences

98,258 and 97,957 shares issued and outstanding

at March 31, 2024 and December 31, 2023 , respectively

at June 30, 2024 and December 31, 2023 , respectively

Capital in excess of stated value 167,114 159,047

10 unchanged sentences

(Dollars and shares in thousands except per share data)

Three Months Ended

March 31, 2024 April 2, 2023

Three Months Ended Six Months Ended

June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023

Net sales $ 1,623,479 $ 1,705,290 $ 3,261,022 $ 3,435,073

5 unchanged sentences

Operating profit 140,372 187,859 252,825 417,507

Other income, net 5,867 — 5,867 —

Non-operating pension costs 4,170 3,342 7,465 7,000

6 unchanged sentences

Net income 90,951 114,749 156,224 263,013

Net (income)/loss attributable to noncontrolling interests ( 96 ) 55

Net income attributable to noncontrolling interests ( 140 ) ( 100 ) ( 236 ) ( 45 )

Net income attributable to Sonoco $ 90,811 $ 114,649 $ 155,988 $ 262,968

11 unchanged sentences

(Dollars in thousands)

Three Months Ended

March 31, 2024 April 2, 2023

Three Months Ended Six Months Ended

June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023

Net income $ 90,951 $ 114,749 $ 156,224 $ 263,013

6 unchanged sentences

57,961 136,104 103,660 319,606

Net (income)/loss attributable to noncontrolling interests ( 96 ) 55

Other comprehensive loss/(income) attributable to noncontrolling interests 467 ( 239 )

Net income attributable to noncontrolling interests ( 140 ) ( 100 ) ( 236 ) ( 45 )

Other comprehensive loss attributable to noncontrolling interests 42 298 509 59

Comprehensive income attributable to Sonoco $ 57,863 $ 136,302 $ 103,933 $ 319,620

23 unchanged sentences

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

Equity Common Shares Capital in

16 unchanged sentences

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 income/(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

See accompanying Notes to Condensed Consolidated Financial Statements (unaudited)

2 unchanged sentences

(Dollars in thousands)

Three Months Ended

March 31, 2024 April 2, 2023

Six Months Ended

June 30, 2024 July 2, 2023

Cash Flows from Operating Activities:

4 unchanged sentences

Share-based compensation expense 14,981 15,210

Equity in earnings of affiliates, net ( 1,137 ) ( 1,856 )

Equity in earnings of affiliated companies, net ( 3,411 ) ( 5,168 )

Cash dividends from affiliated companies 5,458 6,450

Net loss/(gain) on disposition of assets 18 ( 60,615 )

Net gain on disposition of assets ( 957 ) ( 60,111 )

Net gain on divestiture of business and other assets ( 4,478 ) ( 18,436 )

Remeasurement gain of investment in affiliated companies ( 6,012 ) —

Pension and postretirement plan expense 8,843 8,495

14 unchanged sentences

Proceeds from the sale of assets, net 333 71,853

Proceeds from settlement of net investment hedge 9,068 —

Investment in affiliated companies ( 10,000 ) ( 5,000 )

5 unchanged sentences

Net change in commercial paper 28,000 —

Net (decrease)/increase in book cash overdrafts ( 1,614 ) 2,670

Net increase/(decrease) in book cash overdrafts 3,725 ( 441 )

Payment of loan financing costs ( 19,000 ) —

Cash dividends ( 101,310 ) ( 97,689 )

2 unchanged sentences

Effects of Exchange Rate Changes on Cash ( 12,593 ) 8,596

Net Increase in Cash and Cash Equivalents 20,276 ( 17,787 )

Net (Decrease)/Increase in Cash and Cash Equivalents ( 11,704 ) 91,778

Cash and cash equivalents at beginning of period 151,937 227,438

6 unchanged sentences

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.

Operating results for the three-month period ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

Operating results for the three- and six-month periods ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

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, 2023.

10 unchanged sentences

ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted.

The Company is currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures.

The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280):

7 unchanged sentences

In each interim reporting period, the amount outstanding requires disclosure.

The amendments 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 amendments were 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 adopted this standard in the first quarter of 2023, with the exception of the amendment on rollforward information, which will be provided in the Company’s Annual Report on Form 10-K for the year ending December 31, 2024.

During the three-month period ended March 31, 2024, there were no other newly issued or newly applicable accounting pronouncements that had, or are expected to have, a material impact on the Company’s financial statements.

Further, at March 31, 2024, there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s condensed consolidated financial statements.

During the six-month period ended June 30, 2024, there were no other newly issued or newly applicable accounting pronouncements that had, or are expected to have, a material impact on the Company’s financial statements.

Further, at June 30, 2024, there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s condensed consolidated financial statements.

SONOCO PRODUCTS COMPANY

2 unchanged sentences

Acquisitions and Divestitures

As previously disclosed, on December 1, 2023, the Company completed the acquisition of Inapel Embalagens Ltda.

(“Inapel”), a manufacturer of single-layer and multilayer materials for flexible packaging in Brazil, for net consideration of $ 64,544 , including $ 59,228 of cash paid at closing and additional obligations to the seller totaling $ 5,316 that will be paid throughout 2024.

This additional purchase consideration is recorded in “Payable to suppliers” in the Company’s Condensed Consolidated Balance Sheet as of March 31, 2024.

On June 22, 2024, the Company entered into a definitive agreement to acquire Eviosys from KPS Capital Partners, LP for approximately $ 3,900,000 .

Eviosys, a global supplier of metal packaging that produces food cans and ends, aerosol cans, metal closures and promotional packaging with a large metal food can manufacturing footprint in the Europe, Middle East, and Africa region, has approximately 6,300 employees in 44 manufacturing facilities across 17 countries.

This acquisition is expected to accelerate the Company’s strategy to focus on and scale its core businesses.

The acquisition of Eviosys is expected to close by the end of 2024, subject to the completion of required works council consultations, the receipt of required regulatory approvals, and other customary closing conditions.

On December 1, 2023, the Company completed the acquisition of Inapel Embalagens Ltda.

(“Inapel”), a manufacturer of single-layer and multilayer materials for flexible packaging in Brazil, for net consideration of $ 64,390 , including $ 59,228 of cash paid at closing, additional consideration paid of $ 2,340 , and a final net working capital settlement of $ 489 paid during the second quarter of 2024.

Additional obligations to the seller totaling $ 2,333 are expected to be paid before the end of 2024 and are recorded in “Payable to suppliers” in the Company’s Condensed Consolidated Balance Sheet as of June 30, 2024.

With the acquisition of Inapel, the Company added approximately 500 employees and two manufacturing locations in the São Paulo region of Brazil.

22 unchanged sentences

The Company expects to complete its valuations within one year of the date of acquisition.

Goodwill for Inapel, none of which is expected to be deductible for income tax purposes, is primarily attributable to the assembled workforce and synergies of the combined organization.

Goodwill for Inapel, none of which is currently deductible for income tax purposes, is primarily attributable to the assembled workforce and synergies of the combined organization.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

On September 8, 2023, the Company completed the acquisition of the remaining 65 % interest in RTS Packaging, LLC (“RTS Packaging”) from joint venture partner WestRock Company (“WestRock”) and the acquisition of a paper mill in Chattanooga, Tennessee (the “Chattanooga Mill”) from WestRock for net cash consideration of $ 313,388 .

2 unchanged sentences

The financial results of RTS Packaging and the Chattanooga Mill are included in the Company’s Industrial Paper Packaging segment.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The following table provides a summary of the purchase consideration (as defined under Accounting Standards Codification (“ASC”) 805) transferred for the acquisitions of the remaining interest in RTS Packaging and the Chattanooga Mill:

8 unchanged sentences

Trade accounts receivable $ 17,488 $ — $ 17,488

Other receivables — — —

Inventories 20,209 ( 947 ) 19,262

14 unchanged sentences

Net assets acquired $ 371,355 $ 3,192 $ 374,547

The initial allocation of the purchase price of the remaining interest in RTS Packaging and the Chattanooga Mill to the tangible and intangible assets acquired and liabilities assumed, as reflected in the table above, is based on the Company’s preliminary determination of their fair values using information currently available.

The allocation of the purchase price for the remaining interest in RTS Packaging and the Chattanooga Mill to the tangible and intangible assets acquired and liabilities assumed, as reflected under the heading “Preliminary Allocation” in the table above, is based on the Company’s preliminary determinations of fair value using information currently available.

Management is continuing to finalize its valuation of certain assets and liabilities including, but not limited to, inventory;

3 unchanged sentences

The Company expects to complete its valuations within one year of the date of acquisition.

Goodwill for RTS Packaging and the Chattanooga Mill, of which $ 87,191 is expected to be deductible for income tax purposes, is primarily attributable to the synergies of the combined organization and the assembled workforce.

The Company has accounted for these acquisitions as business combinations under the acquisition method and has included the results of operations of the acquired businesses in the Company’s Condensed Consolidated Statements of Income for the three-month period ended March 31, 2024.

The Company believes that these acquisitions were not material to the periods presented and are therefore not subject to the ASC 805 requirement to provide supplemental pro-forma financial information.

Accordingly, this information is not presented herein.

SONOCO PRODUCTS COMPANY

1 unchanged sentence

(Dollars and shares in thousands except per share data)

Goodwill for RTS Packaging and the Chattanooga Mill, of which $ 82,798 is expected to be deductible for income tax purposes, is primarily attributable to the synergies of the combined organization and the assembled workforce.

Accordingly, this information is not presented herein.

Divestiture of Businesses

On April 1, 2024, subsequent to the end of the first quarter, the Company completed the sale of its Protective Solutions business (“Protexic”), which was part of the All Other group of businesses, to Black Diamond Capital Management, LLC for cash proceeds of $ 81,795 .

On April 1, 2024, the Company completed the sale of its Protective Solutions business (“Protexic”), part of the All Other group of businesses, to Black Diamond Capital Management, LLC for cash proceeds of $ 80,267 .

This business provided foam components and integrated material solutions for various industrial end markets.

This sale was the result of the Company’s continuing evaluation of its business portfolio and is consistent with the Company’s strategic and investment priorities.

The Company is finalizing its calculation but estimates that the gain on the disposition will be approximately $ 3,000 after recognizing foreign currency translation losses and remaining selling costs.

In connection with the Protexic divestiture, the Company wrote off net assets totaling $ 74,126 , including $ 16,559 of allocated goodwill, and reclassified $ 2,913 of cumulative translation adjustment losses from Accumulated Other Comprehensive Loss, recognizing a preliminary pretax gain on the divestiture of $ 3,228 during the second quarter of 2024.

The preliminary gain, which is included in “Gain on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income, is expected to be finalized in the third quarter of 2024 upon finalization of the working capital settlement.

The Company used the majority of the cash proceeds from the sale to pay down debt.

The sale of the Protexic business did not represent a strategic shift for the Company and will not have a major effect on its operations or financial results.

Consequently, this sale will not meet the criteria for reporting as a discontinued operation.

On July 1, 2023, the Company completed the sale of its U.S.

BulkSak business, which consisted of the manufacturing and distribution of flexible intermediate bulk containers, plastic and fiber pallets, and custom fit liners and was a part of the Company’s Industrial Paper Packaging segment, to U.S.

BulkSak Holdings, LLC.

The cash selling price, as adjusted for the final working capital settlement, was $ 20,271 with cash proceeds totaling $ 18,271 received in 2023, and the remaining $ 2,000 held in escrow to be released to the Company within eighteen months from the date of the sale, pursuant to the settlement of any indemnity claims.

As a result of the U.S.

BulkSak divestiture, the Company wrote off net assets totaling $ 13,437 , including $ 3,333 of allocated goodwill, and recognized a total pretax gain of $ 6,834 upon completion of the sale.

The gain, of which $ 7,371 was recognized in the second quarter of 2023 as reflected in “Gain on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income, was reduced by $ 537 in the third quarter of 2023 upon the final working capital settlement.

The escrow balance of $ 2,000 is reflected in “Other receivables” on the Company’s Condensed Consolidated Balance Sheet as of June 30, 2024.

Also on July 1, 2023, the Company agreed to the sale of its Mexico BulkSak business.

The sale closed in December 2023 for a cash selling price, as adjusted for working capital, of $ 1,096 .

As a result of the Mexico BulkSak sale, the Company recognized a pretax gain of $ 85 in the fourth quarter of 2023 which was included in “Gain on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income.

On January 26, 2023, the Company completed the sale of its Sonoco Sustainability Solutions (“S3”) business, a provider of customized waste and recycling management programs and part of the Company’s Industrial Paper Packaging segment, to Northstar Recycling Co.

1 unchanged sentence

An additional $ 1,500 of proceeds are being held in escrow and are expected to be released to the Company, pursuant to any indemnification claims, twenty months following the date of the divestiture.

The Company wrote off net assets totaling $ 4,274 as part of the divestiture of the business, including $ 3,042 of allocated goodwill, and recognized a pretax gain of $ 11,065 during the first quarter of 2023, which is included in “Gain on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income.

The escrow balance is reflected as a long-term receivable in “Other assets” in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2024.

The Company is also entitled to receive additional proceeds of $ 3,200 in the second quarter of 2024 if certain conditions are met.

This contingent consideration will be recognized as an additional gain on the sale at the point the contingencies are resolved.

The escrow balance is reflected in “Other receivables” in the Company’s Condensed Consolidated Balance Sheet as of June 30, 2024.

In the second quarter of 2024, upon resolution of certain contingencies, the Company received cash proceeds and recognized an additional pretax gain of $ 1,250 on the sale.

These gains are included in “Gain on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income.

On January 26, 2023, in connection with the sale of the S3 business, the Company acquired a 2.7 % equity interest in Northstar valued at $ 5,000 .

This investment is being accounted for under the measurement alternative (i.e., cost less impairment, adjusted for any qualifying observable price changes).

The sale of the S3 business did not represent a strategic shift for the Company or have a major effect on its operations or financial results.

Consequently, this sale did not meet the criteria for reporting as a discontinued operation.

The sales of the Protexic, U.S.

Bulksak, Mexico Bulksak and S3 businesses did not represent a strategic shift for the Company and did not have a major effect on its operations or financial results.

Consequently, these sales did not meet the criteria for reporting as discontinued operations.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

Sale of Assets

2 unchanged sentences

The Company disposed of assets with a net book value of $ 9,857 as part of the sale, and recognized a pretax gain from the sale of these assets of $ 60,945 during the three-month period ended April 2, 2023, which is included in “Gain on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income.

Additional Ownership Investment

During the second quarter of 2024, the Company increased its ownership investment in a small South Carolina based designer and manufacturer of sustainable protective packaging solutions from 20.5 % to 39.9 %.

The Company acquired its initial ownership interest in June 2022.

The preferred stock investment increased by $ 18,512 during the second quarter of 2024, which included a $ 10,000 cash payment, a $ 5,400 remeasurement of the fair value of the existing investment, and a $ 2,500 conversion of the carrying value of the outstanding convertible notes into a preferred series stock investment, which yielded a $ 467 fair value increase and a $ 145 increase for interest income earned.

The outstanding investment of $ 21,212 as of June 30, 2024 is included within “Other assets” in the Company’s Condensed Consolidated Balance Sheet.

The remeasurement of the carrying value of the existing investment to fair value during the second quarter of 2024 resulted in a gain of $ 5,867 and interest income of $ 145 , which are included in “Other income, net” and “Interest income,” respectively, in the Company’s Condensed Consolidated Statements of Income.

Acquisition, Integration, and Divestiture-Related Costs

Acquisition, integration, and divestiture-related costs totaled $ 5,661 and $ 5,188 during the three-month periods ended March 31, 2024 and April 2, 2023, respectively.

Acquisition, integration, and divestiture-related costs totaled $ 22,269 and $ 4,532 during the three-month periods ended June 30, 2024 and July 2, 2023, respectively, and $ 27,930 and $ 9,720 during the six-month periods ended June 30, 2024 and July 2, 2023, respectively.

These costs include legal and professional fees, as well as employee-related and other integration activity costs that are included in “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income.

5 unchanged sentences

The following table sets forth the computation of basic and diluted earnings per share:

Three Months Ended

March 31, 2024 April 2, 2023

Three Months Ended Six Months Ended

June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023

Net income attributable to Sonoco $ 90,811 $ 114,649 $ 155,988 $ 262,968

12 unchanged sentences

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-month periods ended March 31, 2024 and April 2, 2023 were as follows (in thousands):

Three Months Ended

March 31, 2024 April 2, 2023

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 six-month periods ended June 30, 2024 and July 2, 2023 were as follows (in thousands):

Three Months Ended Six Months Ended

June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023

Anti-dilutive stock appreciation rights 338 341 339 342

2 unchanged sentences

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 repurchased under this authorization during the years ended December 31, 2023 or 2022 or the three-month period ended March 31, 2024.

No shares were repurchased under this authorization during the years ended December 31, 2023 or 2022 or the six-month period ended June 30, 2024.

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 162 shares during the three-month period ended March 31, 2024, at a cost of $ 9,139 , and 175 shares during the three-month period ended April 2, 2023, at a cost of $ 10,576 .

Dividend Declarations

On February 14, 2024, the Board declared a regular quarterly dividend of $ 0.51 per share.

This dividend was paid on March 8, 2024 to all shareholders of record as of February 28, 2024.

These repurchases, which are not part of a publicly announced plan or program, totaled 163 shares during the six-month period ended June 30, 2024, at a cost of $ 9,162 , and 175 shares during the six-month period ended July 2, 2023, at a cost of $ 10,602 .

SONOCO PRODUCTS COMPANY

1 unchanged sentence

(Dollars and shares in thousands except per share data)

Dividend Declarations

On February 14, 2024, the Board declared a regular quarterly dividend of $ 0.51 per share.

This dividend was paid on March 8, 2024 to all shareholders of record as of February 28, 2024.

On April 17, 2024, the Board declared a regular quarterly dividend of $ 0.52 per share.

This dividend is payable on June 10, 2024 to all shareholders of record as of May 10, 2024.

This dividend was paid on June 10, 2024 to all shareholders of record as of May 10, 2024.

On July 17, 2024, the Board declared a regular quarterly dividend of $ 0.52 per share.

This dividend is payable on September 10, 2024 to all shareholders of record as of August 9, 2024.

Restructuring and Asset Impairments

3 unchanged sentences

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

Three Months Ended

March 31, 2024 April 2, 2023

Three Months Ended Six Months Ended

June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023

Restructuring and restructuring-related asset impairment charges $ 19,250 $ 6,057 $ 50,868 $ 34,871

Other asset impairments — — — —

Restructuring/Asset impairment charges $ 19,250 $ 6,057 $ 50,868 $ 34,871

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

Three Months Ended

March 31, 2024 April 2, 2023

Three Months Ended Six Months Ended

June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023

Severance and termination benefits $ 6,100 $ 4,118 $ 24,093 $ 9,634

3 unchanged sentences

The table below sets forth restructuring and restructuring-related asset impairment charges attributable to each reportable segment, the All Other group of businesses, and Corporate-related activity:

Three Months Ended

March 31, 2024 April 2, 2023

Three Months Ended Six Months Ended

June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023

Consumer Packaging $ 11,163 $ 4,015 $ 16,088 $ 6,695

3 unchanged sentences

Restructuring and restructuring-related asset impairment charges $ 19,250 $ 6,057 $ 50,868 $ 34,871

Restructuring and restructuring-related asset impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s Condensed Consolidated Statements of Income.

SONOCO PRODUCTS COMPANY

1 unchanged sentence

(Dollars and shares in thousands except per share data)

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” in the Company’s Condensed Consolidated Balance Sheets:

5 unchanged sentences

2024 charges 24,093 20,343 6,432 50,868

Cash payments ( 6,314 ) ( 498 ) ( 2,218 ) ( 9,030 )

Cash (payments)/receipts ( 16,024 ) 2,613 ( 4,653 ) ( 18,064 )

Asset writedowns/disposals — ( 22,956 ) — ( 22,956 )

Foreign currency translation ( 253 ) — ( 73 ) ( 326 )

Liability at March 31, 2024

Liability at June 30, 2024

$ 22,131 $ — $ 3,344 $ 25,475

“Severance and termination benefits” during the first three months of 2024 includes the cost of severance for approximately 95 employees whose positions were eliminated in conjunction with the Company’s ongoing organizational effectiveness efforts, including the relocation of certain facilities in Greece and Germany, and severance related to the closures of paper mills in Sumner, Washington (the “Sumner Mill”) and Kilkis, Greece, the closures of two small industrial converted products facilities in China, and the planned closure of an industrial converted products facility in Mississauga, Canada, all part of the Industrial Paper Packaging segment.

“Asset impairments” during the first three months of 2024 consists primarily of asset impairment charges related to the closure of the Sumner Mill.

“Other costs” during the first three months of 2024 consists primarily of equipment removal, utilities, plant security, property taxes, insurance and environmental remediation costs related to the closure of the Sumner Mill, and ongoing facility carrying costs of plant closures in the prior year.

“Severance and termination benefits” during the first six months of 2024 includes the cost of severance for approximately 220 employees whose positions were eliminated in conjunction with the Company’s ongoing organizational effectiveness efforts, including the relocation of certain facilities in Greece and Germany, and severance related to the closures of paper mills in Sumner, Washington (the “Sumner Mill”) and Kilkis, Greec e (the “Kilkis Mill”), the closures of two small industrial converted products facilities in China, and the planned closure of an industrial converted products facility in Mississauga, Canada, all part of the Industrial Paper Packaging segment.

“Asset impairments ” during the first six months of 2024 consists primarily of asset impairment charges related to the closures of the Sumner Mill and the Kilkis Mill, both part of the Industrial Paper Packaging segment, and the exit of a small metal canning lid business within Sonoco Metal Packaging, part of the Consumer Packaging segment.

“Other costs” during the first six months of 2024 consists primarily of equipment removal, utilities, plant security, property taxes, insurance and environmental remediation costs related to the closure of the Sumner Mill, and ongoing facility carrying costs of previously announced plant closures.

The Company expects to pay the majority of the remaining restructuring reserves by the end of 2024 using cash generated from operations.

5 unchanged sentences

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 three-month periods ended March 31, 2024 and April 2, 2023:

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 six-month periods ended June 30, 2024 and July 2, 2023:

Items Defined

4 unchanged sentences

$ ( 267,578 ) $ ( 99,627 ) $ 943 $ ( 366,262 )

Other comprehensive (loss)/income before reclassifications ( 19,319 ) ( 932 ) 518 ( 19,733 )

Other comprehensive (loss) before reclassifications

( 55,598 ) ( 181 ) ( 1,124 ) ( 56,903 )

Amounts reclassified from accumulated other comprehensive 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 March 31, 2024

Balance at June 30, 2024

$ ( 320,263 ) $ ( 97,505 ) $ ( 549 ) $ ( 418,317 )

4 unchanged sentences

Amounts reclassified from accumulated other comprehensive loss to property, plant, and equipment — — 309 309

Other comprehensive income 31,569 916 2,514 34,999

Balance at April 2, 2023

Other comprehensive income/(loss) 53,557 ( 847 ) 3,942 56,652

Balance at July 2, 2023

$ ( 284,759 ) $ ( 91,820 ) $ 3,148 $ ( 373,431 )

2 unchanged sentences

(Dollars and shares in thousands except per share data)

The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three-month periods ended March 31, 2024 and April 2, 2023:

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 six-month periods ended June 30, 2024 and July 2, 2023:

Amount Reclassified from Accumulated

Other Comprehensive Loss

Three Months Ended

Three Months Ended Six Months Ended

Details about Accumulated Other

Comprehensive

Loss Components March 31,

2024 April 2,

Loss Components June 30,

2023 June 30,

2023 Affected Line Item in

1 unchanged sentence

Statements of Income

Foreign currency items

Currency translation adjustment loss on Protexic sale (a)

$ ( 2,913 ) $ — $ ( 2,913 ) $ — Gain on divestiture of business and other assets

( 2,913 ) — ( 2,913 ) —

Gains/(losses) on cash flow hedges

Foreign exchange contracts (a)

Foreign exchange contracts (b)

230 2,515 666 3,577 Net sales

Foreign exchange contracts (a)

Foreign exchange contracts (b)

( 64 ) ( 918 ) ( 139 ) ( 1,372 ) Cost of sales

Commodity contracts (a)

Commodity contracts (b)

— — — ( 32 ) Cost of sales

3 unchanged sentences

Defined benefit pension items

Effect of settlement loss (b)

Effect of settlement loss (c)

( 511 ) ( 63 ) ( 511 ) ( 749 ) Non-operating pension costs

Amortization of defined benefit pension items (b)

Amortization of defined benefit pension items (c)

( 1,199 ) ( 1,132 ) ( 2,429 ) ( 2,203 ) Non-operating pension costs

5 unchanged sentences

(b) See Note 10 for additional details.

SONOCO PRODUCTS COMPANY

1 unchanged sentence

(Dollars and shares in thousands except per share data)

The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the three-month periods ended March 31, 2024 and April 2, 2023:

The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the three-month periods ended June 30, 2024 and July 2, 2023:

Three Months Ended

March 31, 2024

June 30, 2024

Three Months Ended

April 2, 2023

Benefit After Tax

3 unchanged sentences

Net other comprehensive (loss)/income from foreign currency items $ ( 35,280 ) $ ( 999 ) $ ( 36,279 ) $ 21,988 $ — $ 21,988

Defined benefit pension items:

Other comprehensive (loss)/income before reclassifications ( 876 ) ( 56 ) ( 932 ) ( 760 ) 367 ( 393 )

Amounts reclassified from accumulated other comprehensive loss to net income (a)

2,913 — 2,913 — — —

Net other comprehensive loss from foreign currency items ( 32,367 ) ( 999 ) ( 33,366 ) 21,988 — 21,988

Defined benefit pension items:

Other comprehensive income/(loss) before reclassifications 671 80 751 ( 3,689 ) 1,033 ( 2,656 )

Amounts reclassified from accumulated other comprehensive loss to net income (b)

1,710 ( 382 ) 1,328 1,195 ( 302 ) 893

Net other comprehensive income/(loss) from defined benefit pension items 2,381 ( 302 ) 2,079 ( 2,494 ) 731 ( 1,763 )

Gains and losses on cash flow hedges:

Other comprehensive income/(loss) before reclassifications 536 ( 18 ) 518 3,536 ( 891 ) 2,645

Other comprehensive (loss)/income before reclassifications (c)

( 2,144 ) 502 ( 1,642 ) 3,344 ( 611 ) 2,733

Amounts reclassified from accumulated other comprehensive loss to net income (c)

( 166 ) 147 ( 19 ) ( 1,597 ) 292 ( 1,305 )

Net other comprehensive (loss)/income from cash flow hedges ( 2,310 ) 649 ( 1,661 ) 1,747 ( 319 ) 1,428

Other comprehensive (loss)/income $ ( 32,296 ) $ ( 652 ) $ ( 32,948 ) $ 21,241 $ 412 $ 21,653

(a) See Note 3 for additional details.

(b) See Note 12 for additional details.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the six-month periods ended June 30, 2024 and July 2, 2023:

Six Months Ended June 30, 2024 Six Months Ended July 2, 2023

Benefit After Tax

Amount Before Tax

Benefit After Tax

Foreign currency items:

Net other comprehensive (loss)/income from foreign currency items $ ( 52,068 ) $ ( 3,530 ) $ ( 55,598 ) $ 53,557 $ — $ 53,557

Amounts reclassified from accumulated other comprehensive loss to net income (a)

2,913 — 2,913 — — —

Net other comprehensive (loss)/income from foreign currency items ( 49,155 ) ( 3,530 ) ( 52,685 ) 53,557 — 53,557

Defined benefit pension items:

Other comprehensive (loss)/income before reclassifications ( 205 ) 24 ( 181 ) ( 4,449 ) 1,400 ( 3,049 )

Amounts reclassified from accumulated other comprehensive loss to net income (b)

2,940 ( 637 ) 2,303 2,952 ( 750 ) 2,202

Amounts reclassified from accumulated other comprehensive loss to property, plant and equipment — — — 401 ( 101 ) 300

Net other comprehensive income/(loss) from cash flow hedges 175 ( 6 ) 169 3,361 ( 847 ) 2,514

Net other comprehensive income/(loss) from defined benefit pension items 2,735 ( 613 ) 2,122 ( 1,497 ) 650 ( 847 )

Gains and losses on cash flow hedges:

Other comprehensive (loss)/income before reclassifications (c)

( 1,608 ) 484 ( 1,124 ) 6,880 ( 1,502 ) 5,378

Amounts reclassified from accumulated other comprehensive loss to net income (c)

( 527 ) 159 ( 368 ) ( 2,173 ) 437 ( 1,736 )

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 ( 2,135 ) 643 ( 1,492 ) 5,108 ( 1,166 ) 3,942

Other comprehensive (loss)/income $ ( 48,555 ) $ ( 3,500 ) $ ( 52,055 ) $ 57,168 $ ( 516 ) $ 56,652

1 unchanged sentence

(b) See Note 12 for additional details.

SONOCO PRODUCTS COMPANY

2 unchanged sentences

Goodwill and Other Intangible Assets

A summary of the changes in goodwill for the three-month period ended March 31, 2024 is as follows:

A summary of the changes in goodwill for the six-month period ended June 30, 2024 is as follows:

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 ( 7,222 ) ( 9,258 ) ( 206 ) ( 16,686 )

Measurement period adjustments ( 7,890 ) — — ( 7,890 )

Goodwill at March 31, 2024 $ 1,044,684 $ 503,598 $ 247,795 $ 1,796,077

Goodwill at June 30, 2024 $ 1,041,129 $ 497,148 $ 231,242 $ 1,769,519

Goodwill activity reflected under the caption “Divestitures” relates to the April 2024 divestiture of Protexic.

See Note 3 for additional information.

Goodwill activity reflected under the caption “Measurement period adjustments” relates to the prior year acquisition of Inapel.

6 unchanged sentences

Although no reporting units failed the annual impairment test, in management’s opinion the goodwill balance of the Plastics-Medical reporting unit is at risk of impairment in the near term if the 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.

At March 31, 2024, the total goodwill associated with the Plastics-Medical reporting unit was $ 63,991 .

During the time subsequent to the annual evaluation, and at March 31, 2024, 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.

At June 30, 2024, the total goodwill associated with the Plastics-Medical reporting unit was $ 63,900 .

During the time subsequent to the annual evaluation, and at June 30, 2024, 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.

3 unchanged sentences

Other Intangible Assets

A summary of other intangible assets as of March 31, 2024 and December 31, 2023 is as follows:

A summary of other intangible assets as of June 30, 2024 and December 31, 2023 is as follows:

2024 December 31,

14 unchanged sentences

Other Intangible Assets, net $ 803,911 $ 853,670

During the first quarter of 2024, the Company recorded measurement period adjustments related to the December 1, 2023 acquisition of Inapel that reduced the previously reported fair value of customer lists by $ 1,094 .

The effect on amortization expense in the prior period was immaterial.

“Total Other Intangibles Assets, gross” and “Total Accumulated Amortization” were both reduced by $ 54,860 during the first six months of 2024 as a result of the divestiture of Protexic in April 2024.

These fully amortized intangible assets consisted primarily of customer lists.

See Note 3 for additional information.

2 unchanged sentences

The Company has no intangible assets with indefinite lives.

Aggregate amortization expense was $ 22,939 and $ 21,164 for the three-month periods ended March 31, 2024 and April 2, 2023, respectively.

Aggregate amortization expense was $ 22,511 and $ 20,539 for the three-month periods ended June 30, 2024 and July 2, 2023, respectively, $ 45,450 and $ 41,703 for the six-month periods ended June 30, 2024 and July 2, 2023, respectively.

Amortization expense on other intangible assets is expected to total approximately $ 90,100 in 2024, $ 78,900 in 2025, $ 74,900 in 2026, $ 73,800 in 2027 and $ 72,900 in 2028.

9 unchanged sentences

(Dollars and shares in thousands except per share data)

The following table sets forth the balance sheet location and values of the Company’s SCF Program obligations at March 31, 2024 and December 31, 2023:

Balance Sheet Line Item March 31, 2024 December 31, 2023

The following table sets forth the balance sheet location and values of the Company’s SCF Program obligations at June 30, 2024 and December 31, 2023:

Balance Sheet Line Item June 30, 2024 December 31, 2023

Payable to suppliers (a)

1 unchanged sentence

(a) The payment of these obligations is included in net cash provided by operating activities in the Company’s Condensed Consolidated Statements of Cash Flows.

Details of the Company’s debt at June 30, 2024 and December 31, 2023 are as follows:

2024 December 31, 2023

Commercial paper $ 28,000 $ —

Syndicated term loan due August 2028 497,347 572,025

1.800 % notes due February 2025

399,538 399,149

2.250 % notes due February 2027

298,676 298,421

2.850 % notes due February 2032

496,044 495,785

3.125 % notes due May 2030

596,757 596,480

5.750 % notes due November 2040

536,263 536,246

Other foreign denominated debt 72,890 78,800

Finance lease obligations 84,932 88,994

Other debt 16,961 17,100

Total debt 3,027,408 3,083,000

Less current portion and short-term notes 485,479 47,132

Long-term debt $ 2,541,929 $ 3,035,868

On May 3, 2024, the Company entered into an Amended and Restated Credit Agreement (the “Agreement”) to extend the maturity and make certain other changes to the terms under the Company’s existing five -year credit agreement dated June 21, 2021.

The Agreement increases the commitments under the Company’s revolving credit facility by $ 350,000 to $ 1,250,000 and extends the maturity date to May 3, 2029.

The Company also increased its $ 500,000 commercial paper program by $ 750,000 to $ 1,250,000 .

The commercial paper program will continue to be supported by the revolving credit facility.

Borrowings under the revolving credit facility will bear interest at a fluctuating rate per annum equal to, at the Company’s option, (i) the forward-looking Secured Overnight Financing Rate term rate (“Term SOFR” and such borrowings, “Term SOFR Loans”), (ii) a base rate set forth in the Agreement, or (iii) a combination thereof, plus, in each case, an applicable margin calculated based on the Company’s credit ratings and, in the of case of Term SOFR Loans, a SOFR Adjustment (as defined in the Agreement) of 10 basis points.

At June 30, 2024, t he applicable margin based on the pricing grid in the Agreement and the Company’s current credit rating, together with the SOFR Adjustment, was 122.5 basis points.

At June 30, 2024 , the Company had $ 28,000 in commercial paper balances outstanding;

accordingly, the committed capacity available for drawdown under its revolving credit facility at June 30, 2024 was $ 1,222,000 .

On June 22, 2024, in conjunction with the announcement of the acquisition of Eviosys, to secure funding of the acquisition, the Company entered into a 364-day senior unsecured bridge term loan facility (the “Bridge Loan Facility”) with JPMorgan Chase and Morgan Stanley in an amount of $ 4,000,000 comprised of two tranches, Tranche A of $ 700,000 and Tranche B of $ 3,300,000 .

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

On July 12, 2024, subsequent to the end of the quarter, the Company entered into a credit agreement with the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (the “Term Credit Agreement”).

The Term Credit Agreement provides the Company with the ability to borrow up to $ 700,000 on an unsecured basis (the “Term Loan Facility”) to finance a portion of the cash consideration for the Company’s pending acquisition of Eviosys.

Funding of the Term Loan Facility is expected to take place substantially concurrently with the closing of the acquisition of Eviosys.

The aggregate amount of the commitments under the Term Credit Agreement have replaced a corresponding amount of the commitments in respect of the Bridge Loan Facility in accordance with the terms of the Bridge Loan Facility commitment letter.

As a result, an aggregate amount of up to $ 3,300,000 in Bridge Loan Facility commitments remain.

No draws have been made under the Term Loan Facility.

In June 2024, the Company paid $ 19,000 in fees related to the Bridge Loan Facility.

These fees were recorded in “Prepaid expenses” on the Company’s Condensed Consolidated Balance Sheets and are being amortized to interest expense over the commitment period ending March 2025.

A total of $ 18,578 of unamortized fees relating to the Bridge Loan Facility remained in prepaid expenses at June 30, 2024.

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 June 30, 2024, the Company’s interest coverage and net worth were substantially above the minimum levels required under these covenants.

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.

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Value Carrying

3 unchanged sentences

Cash Flow Hedges

At March 31, 2024 and December 31, 2023, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows.

These contracts, w hich have maturities ranging from April 2024 to December 2024, qualify as cash flow hedges under U.S.

At June 30, 2024 and December 31, 2023, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows.

These contracts, w hich have maturities ranging from July 2024 to December 2024, qualify as cash flow hedges under U.S.

generally accepted accounting principles (“GAAP”).

1 unchanged sentence

Cash flows from derivative financial instruments designated as cash flow hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

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 March 31, 2024, these contracts included natural gas swaps covering approximately 0.05 million m etric million British thermal units (“MMBTUs”).

These contracts represented approximatel y 0.9 % o f anticipated usage in North America for 2024 .

At June 30, 2024, these contracts included natural gas swaps covering approximatel y 30 thousand metric million British thermal units (“MMBTUs”).

These contracts represented approximately 0.9 % of anticipated u sage in North America for the remainder of 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.

At March 31, 2024 , the Company had also designated swap contracts covering 355 metric tons of aluminum as cash flow hedges.

The fair value of the Company’s commodity cash flow hedges netted to loss positions of $( 66 ) and $( 41 ) at March 31, 2024 and December 31, 2023, respectively.

The amount of the loss included in accumulated other comprehensive loss at March 31, 2024 expected to be reclassified to the income statement during the next twelve months is $( 66 ).

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

At June 30, 2024 , the Company had also designated swap contracts covering 222 metric tons of aluminum as cash flow hedges.

The fair value of the Company’s commodity cash flow hedges netted to loss positions of $( 4 ) and $( 41 ) at June 30, 2024 and December 31, 2023, respectively.

The amount of the loss included in accumulated other comprehensive loss at June 30, 2024 expected to be reclassified to the income statement during the next twelve months is $( 4 ).

Foreign Currency Cash Flow Hedges

The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales and purchases expected to occur in 2024 and 2025.

The net positions of these contracts at March 31, 2024 were as follows (in thousands):

The net positions of these contracts at June 30, 2024 were as follows (in thousands):

Currency Action Quantity

10 unchanged sentences

British pound sell ( 834 )

The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to gain positions of $ 1,697 and $ 1,502 at March 31, 2024 and December 31, 2023, respectively.

Gains of $ 1,697 are expected to be reclassified from accumulated other comprehensive income to the income statement during the next twelve months.

The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to a loss position of $( 859 ) and a gain position of $ 1,502 at June 30, 2024 and December 31, 2023, respectively.

Losses of $( 859 ) are expected to be reclassified from accumulated other comprehensive income to the income statement during the next twelve months.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

Net Investment Hedge

During the fourth quarter of 2023, the Company became a party to cross-currency swap agreements with a total notional amount of $ 500,000 to effectively convert a portion of the Company’s fixed-rate U.S.

In 2023, the Company became a party to cross-currency swap agreements with a total notional amount of $ 500,000 to effectively convert a portion of the Company’s fixed-rate U.S.

dollar denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt.

The swap agreements, which have a maturity of December 18, 2026, provide for the Company to receive semi-annual interest payments in U.S.

The swap agreements, which had a maturity of December 18, 2026, provided for the Company to receive semi-annual interest payments in U.S.

dollars at a fixed rate and to make semi-annual interest payments in euros at a fixed rate.

The risk management objective of entering into the swap agreements is to manage foreign currency risk relating to net investments in certain European subsidiaries denominated in euros.

The agreements are designated as net investment hedges for accounting purposes.

The gain or loss on the net investment hedge derivative instrument is included in the “Foreign currency translation” component of “Accumulated other comprehensive loss” until the net investment is sold, diluted, or liquidated.

Interest payments received for the cross-currency swaps are excluded from the net investment hedge effectiveness assessment and are recorded in “Interest expense” in the Company’s Condensed Consolidated Statements of Income.

The assumptions used in measuring fair value of the cross-currency swaps are considered level 2 inputs, which are based upon the Euro-to-U.S.

dollar exchange rate market.

The fair value of the Company’s net investment hedges was a gain position of $ 4,850 and a loss position of $ 5,073 at March 31, 2024 and December 31, 2023, respectively.

A translation gain of $ 3,613 (net of income taxes of $ 1,237 ) and a translation loss of $ 3,779 (net of income taxes of $ 1,294 ) were reported as components of “Accumulated other comprehensive loss” within “Foreign currency items” at March 31, 2024 and December 31, 2023, respectively.

As a result of continued strengthening of the U.S.

The risk management objective of entering into the swap agreements was to manage foreign currency risk relating to net investments in certain European subsidiaries denominated in euros.

The agreements were designated as net investment hedges for accounting purposes.

On April 15, 2024, as a result of the strengthening of the U.S.

dollar against the euro, as well as a reduction in the differential between U.S.

and European interest rates, the fair value of the Company’s net investment hedge continued to appreciate into the month of April 2024.

On April 15, 2024, subsequent to the end of the first quarter of 2024, the Company terminated the swap agreements and received a cash settlement of $ 11,634 .

The foreign currency translation gain of approximately $ 3,143 , net of tax, will be included as a component of “Accumulated other comprehensive loss” in the second quarter of 2024.

and European interest rates, the Company terminated its swap agreements and received a net cash settlement of $ 9,068 .

The foreign currency translation gain of approximately $ 3,143 , net of tax, is included as a component of “Accumulated other comprehensive loss.”

Following the unwind of the swaps, the Company entered into new cross-currency swap agreements with a total notional amount of $ 500,000 to effectively convert a portion of the Company’s fixed-rate U.S.

dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt.

The new swap agreements have a maturity of May 1, 2027.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The new swap agreements, which have a maturity of May 1, 2027, share the same risk management objective as the terminated cross-currency swap agreements and are also designated as net investment hedges for accounting purposes.

The gain or loss on the net investment hedge derivative instruments is included in the “Foreign currency translation” component of “Accumulated other comprehensive loss” until the net investment is sold, diluted, or liquidated.

The assumptions used in measuring fair value of the cross-currency swaps are considered level 2 inputs, which are based upon the Euro-to-U.S.

dollar exchange rate market.

The fair value of the Company’s net investment hedges were loss positions of $ 301 and $ 5,073 at June 30, 2024 and December 31, 2023, respectively.

Translation losses of $ 224 (net of income taxes of $ 77 ) and $ 3,779 (net of income taxes of $ 1,294 ) were reported as components of “Accumulated other comprehensive loss” within “Foreign currency items” at June 30, 2024 and December 31, 2023, respectively.

Non-Designated Derivatives

4 unchanged sentences

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 March 31, 2024, were as follows (in thousands):

The net currency positions of these non-designated contracts at June 30, 2024, were as follows (in thousands):

Currency Action Quantity

2 unchanged sentences

Mexican peso purchase 394,583

Turkish lira purchase 16,609

Canadian dollar purchase 8,266

1 unchanged sentence

The Company has entered into non-designated derivative contracts to manage the cost of a nticipated purchases of natural gas.

At March 31, 2024, these contracts consisted of natural gas swaps covering approximately 6.6 million MMBTUs and represented approximately 87 % and 33 % of anticipated usage for 2024 and 2025, respectively.

The fair value of the Company’s non-designated derivatives position was a loss of $( 6,690 ) a nd $( 6,790 ) at March 31, 2024 and December 31, 2023, respectively.

The following table sets forth the location and fair values of the Company’s derivative instruments at March 31, 2024 and December 31, 2023:

Description Balance Sheet Location March 31, 2024 December 31, 2023

At June 30, 2024, these contracts consisted of natural gas swaps covering approximately 6.3 million MMBTUs and represented approximately 87 % and 48 % of anticipated usage for the remainder of 2024 and 2025, respectively.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The fair value of the Company’s non-designated derivatives position was a lo ss of $( 3,329 ) a nd $( 6,790 ) at June 30, 2024 and December 31, 2023, respectively.

The following table sets forth the location and fair values of the Company’s derivative instruments at June 30, 2024 and December 31, 2023:

Description Balance Sheet Location June 30, 2024 December 31, 2023

Derivatives designated as hedging instruments:

4 unchanged sentences

Net Investment Hedge Prepaid expense 7,373 5,567

Net Investment Hedge Other assets 744 —

Net Investment Hedge Other liabilities ( 7,674 ) ( 10,640 )

11 unchanged sentences

(Dollars and shares in thousands except per share data)

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three-month periods ended March 31, 2024 and April 2, 2023, 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:

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three-month periods ended June 30, 2024 and July 2, 2023, 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

8 unchanged sentences

Derivatives in Cash Flow Hedging Relationships:

Three-month period ended March 31, 2024

Three-month period ended June 30, 2024

Foreign Exchange Contracts $ ( 2,206 ) Net sales $ 230

1 unchanged sentence

Commodity Contracts 62 Cost of sales —

Three-month period ended April 2, 2023

Three-month period ended July 2, 2023

Foreign Exchange Contracts $ 3,413 Net sales $ 2,515

5 unchanged sentences

Derivatives not Designated as Hedging Instruments:

Three-month period ended March 31, 2024

Three-month period ended June 30, 2024

Commodity Contracts $ 470 Cost of sales

Foreign Exchange Contracts ( 2,771 ) Selling, general and administrative

Three-month period ended April 2, 2023

Three-month period ended July 2, 2023

Commodity Contracts $ ( 1,809 ) Cost of sales

Foreign Exchange Contracts 1,935 Selling, general and administrative

Three-month period ended March 31, 2024 Three-month period ended April 2, 2023

Three-month period ended June 30, 2024 Three-month period ended July 2, 2023

Description Revenue Cost of

9 unchanged sentences

(Dollars and shares in thousands except per share data)

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the six-month periods ended June 30, 2024 and July 2, 2023, 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

Derivatives Location of Gain

Reclassified from

Accumulated OCI

Into Income Amount of Gain or

(Loss) Reclassified

from Accumulated

OCI Into Income

Derivatives in Cash Flow Hedging Relationships:

Six-month period ended June 30, 2024

Foreign Exchange Contracts $ ( 1,645 ) Net sales $ 666

Cost of sales ( 139 )

Commodity Contracts 37 Cost of sales —

Six-month period ended July 2, 2023

Foreign Exchange Contracts $ 7,026 Net sales $ 3,577

Cost of sales ( 1,372 )

Commodity Contracts ( 146 ) Cost of sales ( 32 )

Description Gain or (Loss)

Recognized Location of Gain or (Loss) Recognized in

Income Statement

Derivatives not Designated as Hedging Instruments:

Six-month period ended June 30, 2024

Commodity Contracts $ ( 2,088 ) Cost of sales

Foreign Exchange Contracts ( 2,466 ) Selling, general and administrative

Six-month period ended July 2, 2023

Commodity Contracts $ ( 11,517 ) Cost of sales

Foreign Exchange Contracts 4,072 Selling, general and administrative

Six-month period ended June 30, 2024 Six-month period ended July 2, 2023

Description Revenue Cost of

sales Revenue Cost of

Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 666 $ ( 139 ) $ 3,577 $ ( 1,404 )

Gain or (loss) on cash flow hedging relationships:

Foreign exchange contracts:

Amount of gain/(loss) reclassified from accumulated other comprehensive income into net income $ 666 $ ( 139 ) $ 3,577 $ ( 1,372 )

Commodity contracts:

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

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

Fair Value Measurements

7 unchanged sentences

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 March 31, 2024 Assets measured

Description June 30, 2024 Assets measured

at NAV Level 1 Level 2 Level 3

18 unchanged sentences

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-month period ended March 31, 2024.

The Company measures certain non-financial assets and non-financial liabilities at fair value on a non-recurring basis.

See Note 3 for a discussion of assets acquired and liabilities assumed in acquisitions and Note 5 for a discussion of asset impairments associated with restructuring activities.

The fair value of assets determined based on third-party appraisals and classified as Level 3 measurements due to the use of significant unobservable inputs was not material at March 31, 2024 or December 31, 2023.

There were no transfers in or out of Level 1 or Level 2 fair value measurements during the three- and six-month periods ended June 30, 2024.

SONOCO PRODUCTS COMPANY

1 unchanged sentence

(Dollars and shares in thousands except per share data)

The Company has an investment in the preferred stock of a nonaffiliated private company.

This investment is accounted for under the measurement alternative of cost less impairment, adjusted for any qualifying observable price changes on a non-recurring basis.

Observable price changes would consist of Lev el 2 inputs based on privately negotiated transactions with the nonaffiliated company.

The total investment in p referred stock of $ 21,212 is included in “Other assets” in the Company’s Condensed Consolidated Balance Sheet as of June 30, 2024.

The Company measures certain non-financial assets and non-financial liabilities at fair value on a non-recurring basis.

See Note 3 for a discussion of assets acquired and liabilities assumed in acquisitions and Note 5 for a discussion of asset impairments associated with restructuring activities.

The fair value of assets determined based on third-party appraisals and classified as Level 3 measurements due to the use of significant unobservable inputs was not material at June 30, 2024 or December 31, 2023.

Employee Benefit Plans

3 unchanged sentences

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

Three Months Ended

March 31, 2024 April 2, 2023

Three Months Ended Six Months Ended

June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023

Retirement Plans

12 unchanged sentences

Amortization of net actuarial gain ( 301 ) ( 197 ) ( 447 ) ( 390 )

Net periodic benefit cost/(income) $ 156 $ ( 80 )

Net periodic benefit (income)/cost $ ( 61 ) $ ( 98 ) $ 95 $ ( 176 )

Settlement Charges

The Company recognized settlement ch arges of $ 686 during the three-month period ended April 2, 2023.

The Company recognized settlement ch arges of $ 511 and $ 749 during the six-month periods ended June 30, 2024 and July 2, 2023, 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.

No settlement charges were recognized during the three-month period ended March 31, 2024.

Contributions

The Company made aggregate contributions of $ 3,989 and $ 4,931 to its defined benefit retirement and retiree health and life insurance plans during the three-month periods ended March 31, 2024 and April 2, 2023, respectively.

The Company made aggregate contributions of $ 9,125 and $ 7,456 to its defined benefit retirement and retiree health and life insurance plans during the six-month periods ended June 30, 2024 and July 2, 2023, respectively.

The Company expects to make additional aggregate contributions of approximately $ 11,605 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2024.

The Company’s effective tax rates for the three-month periods ended March 31, 2024 and April 2, 2023 were 21.3 % and 24.3 %, respectively.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The Company’s effective tax rates for the three- and six-month periods ended June 30, 2024 were 23.5 % and 22.6 %, respectively, and its rates for the three- and six-month periods ended July 2, 2023 were 26.8 % and 25.4 %, respectively.

The Company’s effective tax rates varied from the U.S.

3 unchanged sentences

With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years prior to 2017.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The Company’s reserve for uncertain tax benefits increased by $ 137 from December 31, 2023 to March 31, 2024 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 March 31, 2024 could decrease by approximately $ 9,432 over the next twelve months.

The Company’s reserve for uncertain tax benefits increased by $ 938 from December 31, 2023 to June 30, 2024 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 June 30, 2024 could decrease by approximately $ 9,392 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.

6 unchanged sentences

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 - “Leases.” Most of the Company’s 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.

4 unchanged sentences

For additional information about these acquisitions, see Note 3.

The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at March 31, 2024 and December 31, 2023:

Classification Balance Sheet Location March 31, 2024 December 31, 2023

The Company completed the sale of Protexic on April 1, 2024.

The divestiture included operating lease assets of $ 21,989 and operating lease liabilities of $ 22,396 .

For more information about this divestiture, see Note 3.

The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at June 30, 2024 and December 31, 2023:

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

Classification Balance Sheet Location June 30, 2024 December 31, 2023

Operating lease assets Right of Use Asset - Operating Leases $ 313,650 $ 314,944

9 unchanged sentences

Total lease liabilities $ 403,876 $ 409,251

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

Certain of the Company’s leases include variable costs.

2 unchanged sentences

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-month periods ended March 31, 2024 and April 2, 2023:

Three Months Ended

Lease Cost March 31, 2024 April 2, 2023

The following table sets forth the components of the Company’s total lease cost for the three- and six-month periods ended June 30, 2024 and July 2, 2023:

Three Months Ended Six Months Ended

Lease Cost June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023

Operating lease cost (a) $ 13,397 $ 13,891 $ 29,589 $ 27,302

7 unchanged sentences

The following table sets forth certain lease-related information for the three-month periods ended March 31, 2024 and April 2, 2023:

Three Months Ended

March 31, 2024 April 2, 2023

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The following table sets forth certain lease-related information for the six-month periods ended June 30, 2024 and July 2, 2023:

Six Months Ended

June 30, 2024 July 2, 2023

Cash paid for amounts included in the measurement of lease liabilities:

6 unchanged sentences

Modification to leased assets for increase in operating lease liabilities 3,297 1,173

Modification to leased assets for increase in finance lease liabilities 51 6

Termination reclasses to decrease operating lease assets ( 7,133 ) ( 2,615 )

7 unchanged sentences

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

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

Supply Arrangements with customers to provide goods and/or services over specific time periods.

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.

8 unchanged sentences

Contract assets and liabilities are reported in “Other receivables” and “Accrued expenses and other,” respectively, in the Company’s Condensed Consolidated Balance Sheets.

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Contract Assets $ 53,177 $ 54,334

Contract Liabilities ( 26,954 ) ( 24,973 )

Significant changes in the contract assets and liabilities balances during the three-month period ended March 31, 2024 and the year ended December 31, 2023 were as follows:

March 31, 2024 December 31, 2023

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

Significant changes in the contract assets and liabilities balances during the six-month period ended June 30, 2024 and the year ended December 31, 2023 were as follows:

June 30, 2024 December 31, 2023

Asset Contract

2 unchanged sentences

Beginning Balance $ 54,334 $ ( 24,973 ) $ 56,008 $ ( 22,423 )

Acquired as part of a business combination — — — ( 1,436 )

Acquired/sold as part of a business combination/divestiture

— 194 — ( 1,436 )

Revenue deferred or rebates accrued — ( 32,484 ) — ( 53,464 )

9 unchanged sentences

Contract assets and liabilities are generally short in duration given the nature of products produced by the Company.

The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended June 30, 2024 and July 2, 2023.

The tables also include a reconciliation of disaggregated revenue with reportable segments.

The Company’s reportable segments are aligned by product nature as disclosed in Note 16 .

Three-month period ended June 30, 2024 Consumer Packaging Industrial Paper Packaging All Other Total

Primary Geographical Markets:

United States $ 697,610 $ 363,215 $ 79,732 $ 1,140,557

Europe 109,704 96,428 14,628 220,760

Canada 35,745 25,415 — 61,160

Asia 24,488 53,937 359 78,784

Other 60,182 61,775 261 122,218

Total $ 927,729 $ 600,770 $ 94,980 $ 1,623,479

SONOCO PRODUCTS COMPANY

1 unchanged sentence

(Dollars and shares in thousands except per share data)

The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended March 31, 2024 and April 2, 2023.

Three-month period ended July 2, 2023 Consumer Packaging Industrial Paper Packaging All Other Total

Primary Geographical Markets:

United States $ 749,077 $ 339,933 $ 120,984 $ 1,209,994

Europe 119,831 101,162 18,008 239,001

Canada 31,789 24,211 — 56,000

Asia 24,466 55,788 364 80,618

Other 46,157 64,049 9,471 119,677

Total $ 971,320 $ 585,143 $ 148,827 $ 1,705,290

The following tables set forth information about revenue disaggregated by primary geographic regions for the six-month periods ended June 30, 2024 and July 2, 2023.

The tables also include a reconciliation of disaggregated revenue with reportable segments.

The Company’s reportable segments are aligned by product nature as disclosed in Note 15 .

Three-month period ended March 31, 2024 Consumer Packaging Industrial Paper Packaging All Other Total

Six-month period ended June 30, 2024 Consumer

Packaging Industrial

Packaging All Other Total

Primary Geographical Markets:

5 unchanged sentences

Total $ 1,838,306 $ 1,193,830 $ 228,886 $ 3,261,022

Three-month period ended April 2, 2023 Consumer Packaging Industrial Paper Packaging All Other Total

Six-month period ended July 2, 2023 Consumer Packaging Industrial Paper Packaging All Other Total

Primary Geographical Markets:

13 unchanged sentences

As a result, no recycling net sales are recorded and the margin from the operations reduces “Cost of sales.”

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The products produced and sold within the Consumer Packaging segment consist primarily of round and shaped rigid paper, steel and plastic containers;

7 unchanged sentences

The following tables set forth net sales, intersegment sales, segment operating profit, and the reconciliation of segment operating profit to “Income before income taxes.” Segment operating profit is the measure of segment profit or loss reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance in accordance with ASC 280 - “Segment Reporting,” as prescribed by the FASB.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

SEGMENT FINANCIAL INFORMATION

Three Months Ended

March 31, 2024 April 2, 2023

Three Months Ended Six Months Ended

June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023

Consumer Packaging $ 927,729 $ 971,320 $ 1,838,306 $ 1,929,328

21 unchanged sentences

derivative gains/losses;

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.

or certain other items, if any, the exclusion of which the Company’s management believes improves the comparability and analysis of the ongoing operating performance of the business.

All other general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and the All Other group of businesses.

3 unchanged sentences

RECONCILIATION OF SEGMENT OPERATING PROFIT TO INCOME BEFORE INCOME TAXES

Three Months Ended

March 31, 2024 April 2, 2023

Three Months Ended Six Months Ended

June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023

Segment operating profit

7 unchanged sentences

Derivative gains/(losses) 3,485 4,288 3,771 ( 1,796 )

Other operating (charges)/income, net (3)

Other operating income/(charges), net (3)

2,056 ( 5,187 ) ( 1,124 ) ( 5,144 )

Operating profit 140,372 187,859 252,825 417,507

Other income, net 5,867 — 5,867 —

Non-operating pension costs ( 4,170 ) ( 3,342 ) ( 7,465 ) ( 7,000 )

2 unchanged sentences

Income before income taxes $ 115,984 $ 152,177 $ 197,480 $ 345,497

(3) Primarily consists of losses related to highly inflationary accounting in Turkey and consulting fees.

(3) Primarily consists of insurance gains offset by consulting fees in 2024 and losses related to highly inflationary accounting in Turkey and consulting fees, partially offset by insurance gains, in 2023.

Commitments and Contingencies

7 unchanged sentences

Since the acquisition, the Company has spent a total of $ 2,205 on remediation of the Spartanburg site.

At March 31, 2024 and December 31, 2023, the Company’s accrual for environmental contingencies related to the Spartanburg site totaled $ 5,225 and $ 5,259 , respectively.

At June 30, 2024 and December 31, 2023, the Company’s accrual for environmental contingencies related to the Spartanburg site totaled $ 5,195 and $ 5,259 , 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.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

Other environmental matters

3 unchanged sentences

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 March 31, 2024 and December 31, 2023, the Company’s accrual for these other sites totaled $ 2,001 and $ 1,992 , respectively.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

As of March 31, 2024 and December 31, 2023, the Company and its subsidiaries had accrued $ 7,226 and $ 7,251 , respectively, related to environmental contingencies.

At June 30, 2024 and December 31, 2023, the Company’s accrual for these other sites totaled $ 1,785 and $ 1,992 , respectively.

As of June 30, 2024 and December 31, 2023, the Company and its subsidiaries had accrued $ 6,980 and $ 7,251 , respectively, related to environmental contingencies.

These accruals are included in “Accrued expenses and other” in the Company’s Condensed Consolidated Balance Sheets.

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements