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Employee Benefit Plans | 3 Months Ended
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Mar. 29, 2020
Retirement Benefits [Abstract] |
Employee Benefit Plans | Employee Benefit Plans Retirement Plans and Retiree Health and Life Insurance Plans The Company provides non-contributory defined benefit pension plans to certain of its employees in the United States, Mexico and Belgium. The Company also sponsors contributory defined benefit pension plans covering the majority of its employees in the United Kingdom, Canada, and the Netherlands. In addition, the Company provides postretirement healthcare and life insurance benefits to a limited number of its retirees and their dependents in the United States and Canada, based on certain age and/or service eligibility requirements. The Company froze participation in its U.S. qualified defined benefit pension plan for newly hired salaried and non-union hourly employees effective December 31, 2003. To replace this benefit, non-union U.S. employees hired on or after January 1, 2004, are provided an annual contribution, called the Sonoco Retirement Contribution (SRC), to their participant accounts in the Sonoco Retirement and Savings Plan. The SRC is equal to 4% of the participant's eligible pay plus 4% of eligible pay in excess of the social security wage base. On February 4, 2009, the U.S. qualified defined benefit pension plan was further amended to freeze plan benefits for all active, non-union participants effective December 31, 2018. Remaining active participants in the U.S. qualified plan became eligible for SRC contributions effective January 1, 2019. The components of net periodic benefit cost include the following:
|  |  |  |  |  | Three Months Ended |  |
|  |  |  |  |  | March 29, 2020 |  | March 31, 2019
Retirement Plans |  |  |  |  |  |  |  |
Service cost |  |  |  |  |  | $ | 1,082 |  |  | $ | 941 |
Interest cost |  |  |  |  |  | 12,681 |  |  | 14,943 |
Expected return on plan assets |  |  |  |  |  | (12,580) |  |  | (19,097) |
Amortization of prior service cost |  |  |  |  |  | 250 |  |  | 214 |
Amortization of net actuarial loss |  |  |  |  |  | 6,876 |  |  | 9,034 |
Effect of settlement loss |  |  |  |  |  | 623 |  |  | 1,322 |
Net periodic benefit cost |  |  |  |  |  | $ | 8,932 |  |  | $ | 7,357 |
Retiree Health and Life Insurance Plans |  |  |  |  |  |  |  |
Service cost |  |  |  |  |  | $ | 83 |  |  | $ | 74 |
Interest cost |  |  |  |  |  | 84 |  |  | 118 |
Expected return on plan assets |  |  |  |  |  | (90) |  |  | (177) |
Amortization of prior service credit |  |  |  |  |  | (68) |  |  | (123) |
Amortization of net actuarial gain |  |  |  |  |  | (197) |  |  | (193) |
Net periodic benefit income |  |  |  |  |  | $ | (188) |  |  | $ | (301) |
The Company made aggregate contributions of $2,309 and $2,780 to its defined benefit retirement and retiree health and life insurance plans during the three months ended March 29, 2020 and March 31, 2019, respectively. The Company expects to make additional aggregate contributions of approximately $15,000 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2020, excluding potential immaterial cash funding related to restructuring actions. The Company recognized settlement charges totaling $623 and $1,322 during the three months ended March 29, 2020 and March 31, 2019, respectively. These charges resulted from payments made to certain participants of the Company's Canadian pension plan who elected a lump sum distribution option upon retirement. Additional settlement charges may be recognized over the remainder of 2020 as a result of ongoing lump-sum distributions and restructuring actions. Plan Termination As previously disclosed, the Company terminated the Sonoco Pension Plan for Inactive Participants (the "Inactive Plan"), a tax-qualified defined benefit plan, effective September 30, 2019. Upon approval from the Pension Benefit Guaranty Corporation ("PBGC"), and following completion of a limited lump sum offering, the Company is expected to settle all remaining liabilities under the Inactive Plan through the purchase of annuities. The Company intends to apply to the PBGC for an extension of the distribution deadline and expects to make additional contributions to the Inactive Plan of approximately $150,000 ($112,000, after tax) in 2021 in order to be fully funded on a termination basis at the time of the annuity purchase. However, the actual amount of the Company's long-term liability when it is transferred, and the related cash contribution requirement, will depend upon the nature and timing of participant settlements, as well as prevailing market conditions. Non-cash, pretax settlement charges totaling approximately $590,000 are expected to be recognized beginning in 2021 as the lump sum payouts and annuity purchases are made. Sonoco Retirement Contribution (SRC) SRC contributions, which are funded annually in the first quarter, totaled $22,503 during the three months ended March 29, 2020, and $14,573 during the three months ended March 31, 2019. No additional SRC contributions are expected during the remainder of 2020. The Company recognized expense related to the SRC of $5,978 and $6,267 for the quarters ended March 29, 2020 and March 31, 2019, respectively.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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