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Employee Benefit Plans | 9 Months Ended
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Oct. 03, 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. In October 2021, the Company's Board of Directors approved a resolution authorizing amendments to the Sonoco Retirement and Savings Plan to eliminate the SRC contribution and increase the Company's match on elective contributions to the Plan from 50% of the first 4% of compensation contributed by participants to 100% of the first 6%. These amendments will be effective January 1, 2022. The components of net periodic benefit cost include the following:
|  | Three Months Ended |  | Nine Months Ended
|  | October 3, 2021 |  | September 27, 2020 |  | October 3, 2021 |  | September 27, 2020
Retirement Plans |  |  |  |  |  |  |  |
Service cost |  | $ | 968 |  |  | $ | 881 |  |  | $ | 2,949 |  |  | $ | 2,966 |
Interest cost |  | 2,287 |  |  | 12,785 |  |  | 22,051 |  |  | 38,015 |
Expected return on plan assets |  | (3,361) |  |  | (12,427) |  |  | (21,672) |  |  | (37,234) |
Amortization of prior service cost |  | 226 |  |  | 245 |  |  | 687 |  |  | 742 |
Amortization of net actuarial loss |  | 1,600 |  |  | 7,136 |  |  | 14,849 |  |  | 21,270 |
Effect of curtailment loss |  | — |  |  | — |  |  | — |  |  | 31 |
Effect of settlement loss |  | 21 |  |  | — |  |  | 547,652 |  |  | 661 |
Net periodic benefit cost |  | $ | 1,741 |  |  | $ | 8,620 |  |  | $ | 566,516 |  |  | $ | 26,451 |
Retiree Health and Life Insurance Plans |  |  |  |
Service cost |  | $ | 93 |  |  | $ | 89 |  |  | $ | 282 |  |  | $ | 265 |
Interest cost |  | 49 |  |  | 84 |  |  | 149 |  |  | 249 |
Expected return on plan assets |  | (111) |  |  | (92) |  |  | (335) |  |  | (275) |
Amortization of prior service credit |  | — |  |  | (70) |  |  | — |  |  | (207) |
Amortization of net actuarial gain |  | (186) |  |  | (208) |  |  | (563) |  |  | (620) |
Net periodic benefit income |  | $ | (155) |  |  | $ | (197) |  |  | $ | (467) |  |  | $ | (588) |
The Company made aggregate contributions of $142,615 and $12,292 to its defined benefit retirement and retiree health and life insurance plans during the nine months ended October 3, 2021 and September 27, 2020, respectively. The Company expects to make additional aggregate contributions of approximately $6,500 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2021. Plan Termination and Settlement As disclosed in previous filings, the Company terminated the Sonoco Pension Plan for Inactive Participants (the "Inactive Plan"), a tax-qualified defined benefit plan, effective September 30, 2019. The Company settled the liabilities of the Inactive Plan in the second quarter of 2021 through a combination of lump-sum payments and the purchase of group annuity contracts. In order for the Inactive Plan to be fully funded upon final settlement, the Company contributed $133,000 to the Inactive Plan during the second quarter of 2021. Non-cash, pre-tax settlement charges totaling $547,291 were recognized in the second quarter of 2021 as the lump sum payouts and annuity purchases were made. Settlements and Curtailments The Company recognized additional settlement cha rges of $361 and $661 during the nine months ended October 3, 2021 and September 27, 2020, 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. 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. In addition, curtailment charges totaling $31 related to the closure of a paper mill in Canada were recognized during the nine months ended September 27, 2020. Sonoco Retirement Contribution (SRC) SRC contributions, which are funded annually in the first quarter, totaled $22,665 during the nine months ended October 3, 2021, and $22,503 during the nine months ended September 27, 2020. No additional SRC contributions are expected during the remainder of 2021. The Company recognized expense related to the SRC of $5,456 and $5,589 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $17,290 and $17,283 for the nine months ended October 3, 2021 and September 27, 2020, respectively.

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