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Employee Benefit Plans | 3 Months Ended
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Apr. 04, 2021
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
|  |  |  |  |  | April 4, 2021 |  | March 29, 2020
Retirement Plans |  |  |  |  |  |  |  |
Service cost |  |  |  |  |  | $ | 961 |  |  | $ | 1,082 |
Interest cost |  |  |  |  |  | 10,107 |  |  | 12,681 |
Expected return on plan assets |  |  |  |  |  | (9,661) |  |  | (12,580) |
Amortization of prior service cost |  |  |  |  |  | 226 |  |  | 250 |
Amortization of net actuarial loss |  |  |  |  |  | 6,871 |  |  | 6,876 |
Effect of settlement loss |  |  |  |  |  | — |  |  | 623 |
Net periodic benefit cost |  |  |  |  |  | $ | 8,504 |  |  | $ | 8,932 |
Retiree Health and Life Insurance Plans |  |  |  |
Service cost |  |  |  |  |  | $ | 94 |  |  | $ | 83 |
Interest cost |  |  |  |  |  | 50 |  |  | 84 |
Expected return on plan assets |  |  |  |  |  | (113) |  |  | (90) |
Amortization of prior service credit |  |  |  |  |  | — |  |  | (68) |
Amortization of net actuarial gain |  |  |  |  |  | (196) |  |  | (197) |
Net periodic benefit income |  |  |  |  |  | $ | (165) |  |  | $ | (188) |
The Company made aggregate contributions of $3,673 and $2,309 to its defined benefit retirement and retiree health and life insurance plans during the three months ended April 4, 2021 and March 29, 2020, respectively. The Company expects to make additional contributions of approximately $13,500 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2021, excluding contributions to the Sonoco Pension Plan for Inactive Participants (the "Inactive Plan"). See Plan Termination below. Plan Termination As disclosed in previous filings, the Company terminated the Inactive Plan, a tax-qualified defined benefit plan, effective September 30, 2019. The Company expects to settle the liabilities of the Inactive Plan in the second quarter of 2021 through a combination of lump-sum payments and annuity purchases and expects to make additional contributions to the Inactive Plan during the second quarter of 2021 totaling approximately $150,000 in order to be fully funded on a termination basis at the time the liabilities are settled. The first of these contributions, in the amount of $50 million, was made on April 28, 2021, subsequent to the end of the first quarter. The actual amount of the Company's obligation under the Inactive Plan, and the remaining required cash contributions, will depend upon the nature and timing of participant settlements, as well as prevailing market conditions at the time the settlements occur. The Company realized a cash tax benefit of approximately $38,000 in 2020 on these anticipated contributions that will be deductible in its 2020 income tax filings. Non-cash, pretax settlement charges totaling approximately $560,000 are expected to be recognized in the second quarter of 2021 as the lump sum payouts and annuity purchases are made. Settlements and Curtailments The Company recognized settlement cha rges of $623 during the three months ended March 29, 2020. 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. Additional settlement charges related to the Canadian pension plans may be recognized over the remainder of 2021 as a result of ongoing lump-sum distributions and restructuring actions. Sonoco Retirement Contribution (SRC) SRC contributions, which are funded annually in the first quarter, totaled $22,665 during the three months ended April 4, 2021, and $22,503 during the three months ended March 29, 2020. No additional SRC contributions are expected during the remainder of 2021. The Company recognized expense related to the SRC of $6,335 and $5,978 for the quarters ended April 4, 2021 and March 29, 2020, respectively.

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