UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 26, 2024
Commission File No. 001-11261
| (State or other jurisdiction of incorporation) | (I.R.S. Employer Identification Number) | |||||||
(Address of principal executive offices)(Zip Code)
Telephone: (843 ) 383-7000
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure.
As previously disclosed, effective January 1, 2024, Sonoco Products Company (the “Company”) integrated its flexible packaging and thermoforming packaging businesses within its Consumer Packaging segment in order to streamline operations, enhance customer service, and better position the business for accelerated growth. As a result, the Company changed its operating and reporting structure to reflect the way it plans to manage its operations, evaluate performance, and allocate resources going forward. As a result of these changes, the Company’s consumer thermoforming businesses moved from the All Other group of businesses to the Consumer Packaging segment. The Company’s Industrial Paper Packaging segment was not affected by these changes.
The Company is furnishing Exhibit 99.1 to this Current Report on Form 8-K (this “Current Report”) to recast certain segment information previously presented in the footnotes to the Company’s consolidated financial statements and reconciliations of GAAP to non-GAAP financial measures for the fiscal years ended December 31, 2023 and 2022, and for each quarterly reporting period within 2023, in order to facilitate comparisons of the Company’s prior period results with the updated segment structure that will be reflected in the Company’s future GAAP financial statements, beginning with its Quarterly Report on Form 10-Q for the quarter ending March 31, 2024. The Company’s methodologies for calculating its segment results have not changed, and the Company is not yet required to present its updated segment structure under U.S. GAAP.
This Current Report does not reflect events occurring subsequent to the periods reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”), has not been audited, and does not modify or update the disclosures in the 2023 Form 10-K in any way. The information in this Current Report should be read in conjunction with the 2023 Form 10-K and the Company’s other filings with the Securities and Exchange Commission.
The information furnished pursuant this Item 7.01, including Exhibit 99.1 hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description of Exhibit | ||||||||||
| 99.1 | |||||||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SONOCO PRODUCTS COMPANY | ||||||||||||||||||||
| Date: March 26, 2024 | By: | /s/ Robert R. Dillard | ||||||||||||||||||
| Robert R. Dillard | ||||||||||||||||||||
| Chief Financial Officer | ||||||||||||||||||||
Exhibit 99.1
The following tables recast certain unaudited segment information and non-GAAP financial measures of Sonoco Products Company (the “Company”) for each quarterly reporting period in the year ended December 31, 2023, and for the years ending December 31, 2023 and 2022, to conform to the updated reportable segment structure, effective January 1, 2024, that will be reflected in the Company’s future periodic reports. The recast financial information set forth below has not been audited and does not modify or update the disclosures contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”) in any way and should be read in conjunction with the 2023 Form 10-K and the Company’s other filings with the Securities and Exchange Commission.
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||
| Dollars in thousands | April 2, 2023 | July 2, 2023 | October 1, 2023 | December 31, 2023 | December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||
| Net sales: | |||||||||||||||||||||||||||||||||||
| Consumer Packaging | $ | 958,008 | $ | 971,320 | $ | 984,840 | $ | 896,746 | $ | 3,810,914 | $ | 3,955,229 | |||||||||||||||||||||||
| Industrial Paper Packaging | 615,855 | 585,143 | 580,035 | 593,080 | 2,374,113 | 2,684,563 | |||||||||||||||||||||||||||||
| Total reportable segments | 1,573,863 | 1,556,463 | 1,564,875 | 1,489,826 | 6,185,027 | 6,639,792 | |||||||||||||||||||||||||||||
| All Other | 155,920 | 148,827 | 145,544 | 145,974 | 596,265 | 610,760 | |||||||||||||||||||||||||||||
| Net Sales | $ | 1,729,783 | $ | 1,705,290 | $ | 1,710,419 | $ | 1,635,800 | $ | 6,781,292 | $ | 7,250,552 | |||||||||||||||||||||||
Intersegment sales1: | |||||||||||||||||||||||||||||||||||
| Consumer Packaging | $ | 2,007 | $ | 2,364 | $ | 2,756 | $ | 5,529 | $ | 12,656 | $ | 6,673 | |||||||||||||||||||||||
| Industrial Paper Packaging | 38,720 | 35,411 | 3,032 | 24,659 | 101,822 | 134,215 | |||||||||||||||||||||||||||||
| Total reportable segments | 40,727 | 37,775 | 5,788 | 30,188 | 114,478 | 140,888 | |||||||||||||||||||||||||||||
| All Other | 2,789 | 1,845 | 1,740 | 1,804 | 8,178 | 9,570 | |||||||||||||||||||||||||||||
| Intersegment Sales | $ | 43,516 | $ | 39,620 | $ | 7,528 | $ | 31,992 | $ | 122,656 | $ | 150,458 | |||||||||||||||||||||||
Segment operating profit2: | |||||||||||||||||||||||||||||||||||
| Consumer Packaging | $ | 96,494 | $ | 101,115 | $ | 116,800 | $ | 86,250 | $ | 400,659 | $ | 533,766 | |||||||||||||||||||||||
| Industrial Paper Packaging | 94,367 | 87,040 | 75,006 | 61,504 | 317,917 | 327,859 | |||||||||||||||||||||||||||||
| Total reportable segments | $ | 190,861 | $ | 188,155 | $ | 191,806 | $ | 147,754 | $ | 718,576 | $ | 861,625 | |||||||||||||||||||||||
| Reconciliation of segment operating profit to Income before income taxes: | |||||||||||||||||||||||||||||||||||
| Segment operating profit | $ | 190,861 | $ | 188,155 | $ | 191,806 | $ | 147,754 | $ | 718,576 | $ | 861,625 | |||||||||||||||||||||||
| All Other | 22,560 | 22,785 | 20,740 | 19,064 | 85,149 | 58,240 | |||||||||||||||||||||||||||||
| Corporate | |||||||||||||||||||||||||||||||||||
| Restructuring/Asset impairment charges | (28,814) | (6,057) | (18,110) | (3,952) | (56,933) | (56,910) | |||||||||||||||||||||||||||||
| Amortization of acquisition intangibles | (21,164) | (20,539) | (21,379) | (24,182) | (87,264) | (80,445) | |||||||||||||||||||||||||||||
| Other non-GAAP income/(charges), net | 66,205 | 3,515 | (10,120) | (3,338) | 56,262 | (107,114) | |||||||||||||||||||||||||||||
| Operating profit | 229,648 | 187,859 | 162,937 | 135,346 | 715,790 | 675,396 | |||||||||||||||||||||||||||||
| Other income, net | — | — | 36,943 | 2,714 | 39,657 | — | |||||||||||||||||||||||||||||
| Non-operating pension costs | (3,658) | (3,342) | (3,424) | (3,888) | (14,312) | (7,073) | |||||||||||||||||||||||||||||
| Interest expense | (34,232) | (34,284) | (32,847) | (35,323) | (136,686) | (101,662) | |||||||||||||||||||||||||||||
| Interest income | 1,562 | 1,944 | 3,173 | 3,704 | 10,383 | 4,621 | |||||||||||||||||||||||||||||
| Income before income taxes | $ | 193,320 | $ | 152,177 | $ | 166,782 | $ | 102,553 | $ | 614,832 | $ | 571,282 | |||||||||||||||||||||||
1 Intersegment sales are recorded at a market-related transfer price.
2 Segment operating profit viewed by the Company’s management to evaluate segment performance does not include the following: restructuring/asset impairment charges; amortization of acquisition intangibles; acquisition, integration and divestiture-related costs; changes in last-in, first-out inventory reserves; gains/losses from the sale of businesses or other assets; 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. 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.
| Segment Adjusted EBITDA and All Other Adjusted EBITDA Reconciliation | |||||||||||||||||
| For the Three Months Ended April 2, 2023 | |||||||||||||||||
| Dollars in thousands | Consumer Packaging segment | Industrial Paper Packaging segment | All Other | Corporate | Total | ||||||||||||
| Segment and Total Operating Profit | $ | 96,494 | $ | 94,367 | $ | 22,560 | $ | 16,227 | $ | 229,648 | |||||||
| Adjustments: | |||||||||||||||||
Depreciation, depletion and amortization1 | 32,549 | 24,878 | 3,546 | 21,164 | 82,137 | ||||||||||||
| Equity in earnings of affiliates, net of tax | 75 | 1,781 | — | — | 1,856 | ||||||||||||
Restructuring/Asset impairment charges2 | — | — | — | 28,814 | 28,814 | ||||||||||||
Changes in LIFO inventory reserves3 | — | — | — | (5,425) | (5,425) | ||||||||||||
Acquisition, integration and divestiture-related costs4 | — | — | — | 5,188 | 5,188 | ||||||||||||
Gain from divestiture of business and other assets5 | — | — | — | (72,010) | (72,010) | ||||||||||||
Net losses from derivatives6 | — | — | — | 6,085 | 6,085 | ||||||||||||
| Other non-GAAP adjustments | — | — | — | (43) | (43) | ||||||||||||
| Segment Adjusted EBITDA | $ | 129,118 | $ | 121,026 | $ | 26,106 | $ | — | $ | 276,250 | |||||||
| Net Sales | $ | 958,008 | $ | 615,855 | $ | 155,920 | |||||||||||
| Segment Operating Profit Margin | 10.1 | % | 15.3 | % | 14.5 | % | |||||||||||
| Segment Adjusted EBITDA Margin | 13.5 | % | 19.7 | % | 16.7 | % | |||||||||||
1 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer Packaging segment of $16,226, the Industrial Paper Packaging segment of $2,934, and the All Other group of businesses of $2,004.
2 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $2,680, the Industrial Paper Packaging segment of $24,544, and the All Other group of businesses of $53.
3 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer Packaging segment of $6,102 and the Industrial Paper Packaging segment of $(677).
4 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer Packaging segment of $779 and the Industrial Paper Packaging segment of $289.
5 Included in Corporate are gains from the sale of the Company's timberland properties in the amount of $(60,945) and the sale of its S3 business in the amount of $(11,065), both of which are associated with the Industrial Paper Packaging segment.
6 Included in Corporate are losses on derivatives associated with the Consumer Packaging segment of $946, the Industrial Paper Packaging segment of $3,912, and the All Other group of businesses of $1,170.
| Segment Adjusted EBITDA and All Other Adjusted EBITDA Reconciliation | |||||||||||||||||
| For the Three Months Ended July 2, 2023 | |||||||||||||||||
| Dollars in thousands | Consumer Packaging segment | Industrial Paper Packaging segment | All Other | Corporate | Total | ||||||||||||
| Segment and Total Operating Profit | $ | 101,115 | $ | 87,040 | $ | 22,785 | $ | (23,081) | $ | 187,859 | |||||||
| Adjustments: | |||||||||||||||||
Depreciation, depletion and amortization1 | 32,465 | 25,008 | 3,667 | 20,539 | 81,679 | ||||||||||||
| Equity in earnings of affiliates, net of tax | 134 | 3,178 | — | — | 3,312 | ||||||||||||
Restructuring/Asset impairment charges2 | — | — | — | 6,057 | 6,057 | ||||||||||||
Changes in LIFO inventory reserves3 | — | — | — | (1,575) | (1,575) | ||||||||||||
Acquisition, integration and divestiture-related costs4 | — | — | — | 4,532 | 4,532 | ||||||||||||
Gain from divestiture of business and other assets5 | — | — | — | (7,371) | (7,371) | ||||||||||||
Net gains from derivatives6 | — | — | — | (4,288) | (4,288) | ||||||||||||
| Other non-GAAP adjustments | — | — | — | 5,187 | 5,187 | ||||||||||||
| Segment Adjusted EBITDA | $ | 133,714 | $ | 115,226 | $ | 26,452 | $ | — | $ | 275,392 | |||||||
| Net Sales | $ | 971,320 | $ | 585,143 | $ | 148,827 | |||||||||||
| Segment Operating Profit Margin | 10.4 | % | 14.9 | % | 15.3 | % | |||||||||||
| Segment Adjusted EBITDA Margin | 13.8 | % | 19.7 | % | 17.8 | % | |||||||||||
1 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer Packaging segment of $15,987, the Industrial Paper Packaging segment of $2,565, and the All Other group of businesses of $1,987.
2 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $4,016, the Industrial Paper Packaging segment of $1,987, and the All Other group of businesses of $865.
3 Included in Corporate are changes in LIFO inventory reserves associated with and the Industrial Paper Packaging segment of $(1,575).
4 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer Packaging segment of $112 and the Industrial Paper Packaging segment of $60.
5 Included in Corporate is the gain from the sale of the Company’s U.S. BulkSak businesses, associated with the Industrial Paper Packaging segment, in the amount of $(7,371).
6 Included in Corporate are gains on derivatives associated with the Consumer Packaging segment of $(650), the Industrial Paper Packaging segment of $(2,835), and the All Other group of businesses of $(803).
| Segment Adjusted EBITDA and All Other Adjusted EBITDA Reconciliation | |||||||||||||||||
| For the Six Months Ended July 2, 2023 | |||||||||||||||||
| Dollars in thousands | Consumer Packaging segment | Industrial Paper Packaging segment | All Other | Corporate | Total | ||||||||||||
| Segment and Total Operating Profit | $ | 197,608 | $ | 181,407 | $ | 45,345 | $ | (6,853) | $ | 417,507 | |||||||
| Adjustments: | |||||||||||||||||
Depreciation, depletion and amortization1 | 65,015 | 49,886 | 7,213 | 41,703 | 163,817 | ||||||||||||
| Equity in earnings of affiliates, net of tax | 209 | 4,959 | — | — | 5,168 | ||||||||||||
Restructuring/Asset impairment charges2 | — | — | — | 34,871 | 34,871 | ||||||||||||
Changes in LIFO inventory reserves3 | — | — | — | (7,000) | (7,000) | ||||||||||||
Acquisition, integration and divestiture-related costs4 | — | — | — | 9,720 | 9,720 | ||||||||||||
Gains from divestiture of business and other assets5 | — | — | — | (79,381) | (79,381) | ||||||||||||
Net losses from derivatives6 | — | — | — | 1,796 | 1,796 | ||||||||||||
| Other non-GAAP adjustments | — | — | — | 5,144 | 5,144 | ||||||||||||
| Segment Adjusted EBITDA | $ | 262,832 | $ | 236,252 | $ | 52,558 | $ | — | $ | 551,642 | |||||||
| Net Sales | $ | 1,929,328 | $ | 1,200,998 | $ | 304,747 | |||||||||||
| Segment Operating Profit Margin | 10.2 | % | 15.1 | % | 14.9 | % | |||||||||||
| Segment Adjusted EBITDA Margin | 13.6 | % | 19.7 | % | 17.2 | % | |||||||||||
1 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer Packaging segment of $32,213, the Industrial Paper Packaging segment of $5,499, and the All Other group of businesses of $3,991.
2 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $6,696, the Industrial Paper Packaging segment of $26,531, and the All Other group of businesses of $918.
3 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer Packaging segment of $(6,103) and the Industrial Paper Packaging segment of $(897).
4 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer Packaging segment of $892 and the Industrial Paper Packaging segment of $349.
5 Included in Corporate are gains from the sale of the Company’s timberland properties in the amount of $(60,945), the sale of its S3 business in the amount of $(11,065), and the sale of its U.S. BulkSak businesses in the amount of $(7,371), all of which are associated with the Industrial Paper Packaging segment.
6 Included in Corporate are losses on derivatives associated with the Consumer Packaging segment of $297, the Industrial Paper Packaging segment of $1,133, and the All Other group of businesses of $366.
| Segment Adjusted EBITDA and All Other Adjusted EBITDA Reconciliation | |||||||||||||||||
| For the Three Months Ended October 1, 2023 | |||||||||||||||||
| Dollars in thousands | Consumer Packaging segment | Industrial Paper Packaging segment | All Other | Corporate | Total | ||||||||||||
| Segment and Total Operating Profit | $ | 116,800 | $ | 75,006 | $ | 20,740 | $ | (49,609) | $ | 162,937 | |||||||
| Adjustments: | |||||||||||||||||
Depreciation, depletion and amortization1 | 33,833 | 26,558 | 3,800 | 21,379 | 85,570 | ||||||||||||
| Equity in earnings of affiliates, net of tax | 284 | 3,343 | — | — | 3,627 | ||||||||||||
Restructuring/Asset impairment charges2 | — | — | — | 18,110 | 18,110 | ||||||||||||
Changes in LIFO inventory reserves3 | — | — | — | (3,186) | (3,186) | ||||||||||||
Acquisition, integration and divestiture-related costs4 | — | — | — | 12,472 | 12,472 | ||||||||||||
| Loss from divestiture of business and other assets | — | — | — | 537 | 537 | ||||||||||||
Net gains from derivatives5 | — | — | — | (3,310) | (3,310) | ||||||||||||
| Other non-GAAP adjustments | — | — | — | 3,607 | 3,607 | ||||||||||||
| Segment Adjusted EBITDA | $ | 150,917 | $ | 104,907 | $ | 24,540 | $ | — | $ | 280,364 | |||||||
| Net Sales | $ | 984,840 | $ | 580,035 | $ | 145,544 | |||||||||||
| Segment Operating Profit Margin | 11.9 | % | 12.9 | % | 14.2 | % | |||||||||||
| Segment Adjusted EBITDA Margin | 15.3 | % | 18.1 | % | 16.9 | % | |||||||||||
1 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer Packaging segment of $15,980, the Industrial Paper Packaging segment of $3,414, and the All Other group of businesses of $1,985.
2 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $9,784, the Industrial Paper Packaging segment of $6,430, and the All Other group of businesses of $270.
3 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer Packaging segment of $(3,325) and the Industrial Paper Packaging segment of $139.
4 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer Packaging segment of $410 and the Industrial Paper Packaging segment of $5,046.
5 Included in Corporate are gains on derivatives associated with the Consumer Packaging segment of $(507), the Industrial Paper Packaging segment of $(2,178), and the All Other group of businesses of $(625).
| Segment Adjusted EBITDA and All Other Adjusted EBITDA Reconciliation | |||||||||||||||||
| For the Nine Months Ended October 1, 2023 | |||||||||||||||||
| Dollars in thousands | Consumer Packaging segment | Industrial Paper Packaging segment | All Other | Corporate | Total | ||||||||||||
| Segment and Total Operating Profit | $ | 314,408 | $ | 256,413 | $ | 66,084 | $ | (56,461) | $ | 580,444 | |||||||
| Adjustments: | |||||||||||||||||
Depreciation, depletion and amortization1 | 98,847 | 76,444 | 11,014 | 63,082 | 249,387 | ||||||||||||
| Equity in earnings of affiliates, net of tax | 493 | 8,302 | — | — | 8,795 | ||||||||||||
Restructuring/Asset impairment charges2 | — | — | — | 52,981 | 52,981 | ||||||||||||
Changes in LIFO inventory reserves3 | — | — | — | (10,186) | (10,186) | ||||||||||||
Acquisition, integration and divestiture-related costs4 | — | — | — | 22,192 | 22,192 | ||||||||||||
Gains from divestiture of business and other assets5 | — | — | — | (78,844) | (78,844) | ||||||||||||
Net gains from derivatives6 | — | — | — | (1,514) | (1,514) | ||||||||||||
| Other non-GAAP adjustments | — | — | — | 8,750 | 8,750 | ||||||||||||
| Segment Adjusted EBITDA | $ | 413,748 | $ | 341,159 | $ | 77,098 | $ | — | $ | 832,005 | |||||||
| Net Sales | $ | 2,914,168 | $ | 1,781,033 | $ | 450,291 | |||||||||||
| Segment Operating Profit Margin | 10.8 | % | 14.4 | % | 14.7 | % | |||||||||||
| Segment Adjusted EBITDA Margin | 14.2 | % | 19.2 | % | 17.1 | % | |||||||||||
1 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer Packaging segment of $48,193, the Industrial Paper Packaging segment of $8,913, and the All Other group of businesses of $5,976.
2 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $16,480, the Industrial Paper Packaging segment of $32,961, and the All Other group of businesses of $1,188.
3 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer Packaging segment of $(9,428) and the Industrial Paper Packaging segment of $(758).
4 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer Packaging segment of $1,302 and the Industrial Paper Packaging segment of $5,394.
5 Included in Corporate are gains from the divestiture of business and other assets associated with the sale of the Company’s timberland properties of $(60,945), the sale of its S3 business of $(11,065), and the sale of its U.S. BulkSak business of $(6,834), all of which are associated with the Industrial Paper Packaging segment.
6 Included in Corporate are gains on derivatives associated with the Consumer Packaging segment of $(210), the Industrial Paper Packaging segment of $(1,045), and the All Other group of businesses of $(259).
| Segment Adjusted EBITDA and All Other Adjusted EBITDA Reconciliation | |||||||||||||||||
| For the Three Months Ended December 31, 2023 | |||||||||||||||||
| Dollars in thousands | Consumer Packaging segment | Industrial Paper Packaging segment | All Other | Corporate | Total | ||||||||||||
| Segment and Total Operating Profit | $ | 86,250 | $ | 61,504 | $ | 19,064 | $ | (31,472) | $ | 135,346 | |||||||
| Adjustments: | |||||||||||||||||
Depreciation, depletion and amortization1 | 35,511 | 28,278 | 3,630 | 24,182 | 91,601 | ||||||||||||
| Equity in earnings of affiliates, net of tax | 71 | 1,481 | — | — | 1,552 | ||||||||||||
Restructuring/Asset impairment charges2 | — | — | — | 3,952 | 3,952 | ||||||||||||
Changes in LIFO inventory reserves3 | — | — | — | (1,631) | (1,631) | ||||||||||||
Acquisition, integration and divestiture-related costs4 | — | — | — | 4,063 | 4,063 | ||||||||||||
| Gains from divestiture of business and other assets | — | — | — | (85) | (85) | ||||||||||||
Net gains from derivatives5 | — | — | — | (397) | (397) | ||||||||||||
| Other non-GAAP adjustments | — | — | — | 1,388 | 1,388 | ||||||||||||
| Segment Adjusted EBITDA | $ | 121,832 | $ | 91,263 | $ | 22,694 | $ | — | $ | 235,789 | |||||||
| Net Sales | $ | 896,746 | $ | 593,080 | $ | 145,974 | |||||||||||
| Segment Operating Profit Margin | 9.6 | % | 10.4 | % | 13.1 | % | |||||||||||
| Segment Adjusted EBITDA Margin | 13.6 | % | 15.4 | % | 15.5 | % | |||||||||||
1 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer Packaging segment of $15,998, the Industrial Paper Packaging segment of $7,208, and the All Other group of businesses of $976.
2 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $(3,733), the Industrial Paper Packaging segment of $5,793, and the All Other group of businesses of $1,748.
3 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer Packaging segment of $(1,487) and the Industrial Paper Packaging segment of $(144).
4 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer Packaging segment of $436 and the Industrial Paper Packaging segment of $415.
5 Included in Corporate are gains on derivatives associated with the Consumer Packaging segment of $(68), the Industrial Paper Packaging segment of $(244), and the All Other group of businesses of $(85).
| Segment Adjusted EBITDA and All Other Adjusted EBITDA Reconciliation | |||||||||||||||||
| For the Year Ended December 31, 2023 | |||||||||||||||||
| Dollars in thousands | Consumer Packaging segment | Industrial Paper Packaging segment | All Other | Corporate | Total | ||||||||||||
| Segment and Total Operating Profit | $ | 400,659 | $ | 317,917 | $ | 85,149 | $ | (87,935) | $ | 715,790 | |||||||
| Adjustments: | |||||||||||||||||
Depreciation, depletion and amortization1 | 134,358 | 104,722 | 14,644 | 87,264 | 340,988 | ||||||||||||
| Equity in earnings of affiliates, net of tax | 564 | 9,783 | — | — | 10,347 | ||||||||||||
Restructuring/Asset impairment charges2 | — | — | — | 56,933 | 56,933 | ||||||||||||
Changes in LIFO inventory reserves3 | — | — | — | (11,817) | (11,817) | ||||||||||||
Acquisition, integration and divestiture-related costs4 | — | — | — | 26,254 | 26,254 | ||||||||||||
Gain from divestiture of business and other assets5 | — | — | — | (78,929) | (78,929) | ||||||||||||
Net gains from derivatives6 | — | — | — | (1,912) | (1,912) | ||||||||||||
Other non-GAAP adjustments7 | — | — | — | 10,142 | 10,142 | ||||||||||||
| Segment Adjusted EBITDA | $ | 535,581 | $ | 432,422 | $ | 99,793 | $ | — | $ | 1,067,796 | |||||||
| Net Sales | $ | 3,810,914 | $ | 2,374,113 | $ | 596,265 | |||||||||||
| Segment Operating Profit Margin | 10.5 | % | 13.4 | % | 14.3 | % | |||||||||||
| Segment Adjusted EBITDA Margin | 14.1 | % | 18.2 | % | 16.7 | % | |||||||||||
1 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer Packaging segment of $64,191, the Industrial Paper Packaging segment of $16,121, and the All Other group of businesses of $6,952.
2 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $8,059, the Industrial Paper Packaging segment of $38,754, and the All Other group of businesses of $7,623.
3 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer Packaging segment of $(10,915) and the Industrial Paper Packaging segment of $(902).
4 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer Packaging segment of $1,738 and the Industrial Paper Packaging segment of $5,810.
5 Included in Corporate are gains from the sale of the Company’s timberland properties in the amount of $(60,945), the sale of its S3 business in the amount of $(11,065), and the sales of its BulkSak businesses in the amount of $(6,919), all of which are associated with the Industrial Paper Packaging segment.
6 Included in Corporate are gains on derivatives associated with the Consumer Packaging segment of $(278), the Industrial Paper Packaging segment of $(1,290), and the All Other group of businesses of $(344).
7 Included in Corporate are other non-GAAP adjustments associated with the Industrial Paper Packaging segment of $3,762 and the All Other group of businesses of $3,249.
| Segment Adjusted EBITDA and All Other Adjusted EBITDA Reconciliation | |||||||||||||||||
| For the Year Ended December 31, 2022 | |||||||||||||||||
| Dollars in thousands | Consumer Packaging segment | Industrial Paper Packaging segment | All Other | Corporate | Total | ||||||||||||
| Segment and Total Operating Profit | $ | 533,766 | $ | 327,859 | $ | 58,240 | $ | (244,469) | $ | 675,396 | |||||||
| Adjustments: | |||||||||||||||||
Depreciation, depletion, and amortization1 | 122,176 | 91,944 | 14,277 | 80,427 | 308,824 | ||||||||||||
| Equity in earnings of affiliates, net of tax | 485 | 13,722 | — | — | 14,207 | ||||||||||||
Restructuring/Asset impairment charges2 | — | — | — | 56,910 | 56,910 | ||||||||||||
Changes in LIFO inventory reserves3 | — | — | — | 28,445 | 28,445 | ||||||||||||
Acquisition, integration and divestiture-related costs4 | — | — | — | 70,210 | 70,210 | ||||||||||||
Net losses from derivatives5 | — | — | — | 8,767 | 8,767 | ||||||||||||
| Other non-GAAP adjustments | — | — | — | (290) | (290) | ||||||||||||
| Segment Adjusted EBITDA | $ | 656,427 | $ | 433,525 | $ | 72,517 | $ | — | $ | 1,162,469 | |||||||
| Net Sales | $ | 3,955,229 | $ | 2,684,563 | $ | 610,760 | |||||||||||
| Segment Operating Profit Margin | 13.5 | % | 12.2 | % | 9.5 | % | |||||||||||
| Segment Adjusted EBITDA Margin | 16.6 | % | 16.1 | % | 11.9 | % | |||||||||||
1 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer Packaging segment of $62,221, the Industrial Paper Packaging segment of $8,053, and the All Other group of businesses of $10,153.
2 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $13,705, the Industrial Paper Packaging segment of $24,745, and the All Other group of businesses of $(69).
3 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer Packaging segment of $26,753 and the Industrial Paper Packaging segment of $1,692.
4 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer Packaging segment of $38,690 and the Industrial Paper Packaging segment of $1,885.
5 Included in Corporate are losses on derivatives associated with the Consumer Packaging segment of $1,332, the Industrial Paper Packaging segment of $5,789, and the All Other group of businesses of $1,646.