0000091767
us-gaap:CommonStockMember
2010-01-01
2010-12-31
0000091767
us-gaap:CommonStockMember
2009-01-01
2009-12-31
0000091767
us-gaap:CommonStockMember
2008-01-01
2008-12-31
0000091767
us-gaap:AdditionalPaidInCapitalMember
2010-12-31
0000091767
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2010-12-31
0000091767
us-gaap:NoncontrollingInterestMember
2010-12-31
0000091767
us-gaap:RetainedEarningsMember
2010-12-31
0000091767
us-gaap:NoncontrollingInterestMember
2009-12-31
0000091767
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2009-12-31
0000091767
us-gaap:AdditionalPaidInCapitalMember
2009-12-31
0000091767
us-gaap:RetainedEarningsMember
2009-12-31
0000091767
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2008-12-31
0000091767
us-gaap:RetainedEarningsMember
2008-12-31
0000091767
us-gaap:NoncontrollingInterestMember
2008-12-31
0000091767
us-gaap:AdditionalPaidInCapitalMember
2008-12-31
0000091767
us-gaap:RetainedEarningsMember
2007-12-31
0000091767
us-gaap:AdditionalPaidInCapitalMember
2007-12-31
0000091767
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2007-12-31
0000091767
us-gaap:NoncontrollingInterestMember
2007-12-31
0000091767
us-gaap:NoncontrollingInterestMember
2010-01-01
2010-12-31
0000091767
us-gaap:NoncontrollingInterestMember
2008-01-01
2008-12-31
0000091767
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2010-01-01
2010-12-31
0000091767
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2009-01-01
2009-12-31
0000091767
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2008-01-01
2008-12-31
0000091767
us-gaap:NoncontrollingInterestMember
2009-01-01
2009-12-31
0000091767
us-gaap:RetainedEarningsMember
2010-01-01
2010-12-31
0000091767
us-gaap:RetainedEarningsMember
2009-01-01
2009-12-31
0000091767
us-gaap:CommonStockMember
2010-12-31
0000091767
us-gaap:CommonStockMember
2009-12-31
0000091767
us-gaap:CommonStockMember
2008-12-31
0000091767
us-gaap:CommonStockMember
2007-12-31
0000091767
2008-12-31
0000091767
2007-12-31
0000091767
us-gaap:AdditionalPaidInCapitalMember
2010-01-01
2010-12-31
0000091767
us-gaap:AdditionalPaidInCapitalMember
2009-01-01
2009-12-31
0000091767
us-gaap:AdditionalPaidInCapitalMember
2008-01-01
2008-12-31
0000091767
2010-12-31
0000091767
2009-12-31
0000091767
2009-01-01
2009-12-31
0000091767
us-gaap:RetainedEarningsMember
2008-01-01
2008-12-31
0000091767
2008-01-01
2008-12-31
0000091767
2010-06-27
0000091767
2011-02-17
0000091767
2010-01-01
2010-12-31
iso4217:USD
xbrli:shares
xbrli:shares
iso4217:USD
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 1 - us-gaap:SignificantAccountingPoliciesTextBlock-->
<!-- xbrl,ns -->
<!-- xbrl,nx -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>1. Summary of Significant Accounting Policies</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Basis of Presentation</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Consolidated Financial Statements include the accounts of Sonoco Products Company and its
majority-owned subsidiaries (the “Company” or “Sonoco”) after elimination of intercompany accounts
and transactions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Investments in affiliated companies in which the Company shares control over the financial and
operating decisions, but in which the Company is not the primary beneficiary, are accounted for by
the equity method of accounting. Income applicable to these equity investments is reflected in
“Equity in earnings of affiliates, net of tax” in the Consolidated Statements of Income. The
aggregate carrying value of equity investments is reported in “Other Assets” in the Company’s
Consolidated Balance Sheets and totaled $107,288 and $99,940 at December 31, 2010 and 2009,
respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Affiliated companies in which the Company held a significant investment at December 31, 2010,
included:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Ownership Interest</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Percentage at</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000">Entity</td>
<td style="border-bottom: 1px solid black"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">December 31, 2010</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">RTS Packaging JVCO
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">35.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cascades Conversion, Inc.
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">50.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cascades Sonoco, Inc.
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">50.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Showa Products Company Ltd.
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">20.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Conitex Sonoco Holding BVI Ltd.
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">30.0</td>
<td nowrap="nowrap">%</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Estimates and Assumptions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America (U.S. GAAP) requires management to make estimates and assumptions
that affect the reported amount of assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Revenue Recognition</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company records revenue when title and risk of ownership pass to the customer, and when
persuasive evidence of an arrangement exists, delivery has occurred or services have been
rendered, the sales price to the customer is fixed or determinable and when collectibility is
reasonably assured. Certain judgments, such as provisions for estimates of sales returns and
allowances, are required in the application of the Company’s revenue policy and, therefore, the
results of operations in its Consolidated Financial Statements. Shipping and handling expenses
are included in “Cost of sales,” and freight charged to customers is included in “Net sales” in
the Company’s Consolidated Statements of Income.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Accounts Receivable and Allowance for Doubtful Accounts</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s trade accounts receivable are non-interest bearing and are recorded at the invoiced
amounts. The allowance for doubtful accounts represents the Company’s best estimate of the amount
of probable credit losses in existing accounts receivable. Provisions are made to the allowance
for doubtful accounts at such time that collection of all or part of a trade account receivable
is in question. The allowance for doubtful accounts is monitored on a regular basis and
adjustments are made as needed to ensure that the account properly reflects the Company’s best
estimate of uncollectible trade accounts receivable. Trade accounts receivable balances that are
more than 180 days past due are generally 100% provided for in the allowance for doubtful
accounts. Account balances are charged off against the
allowance for doubtful accounts when the Company determines that the receivable will not be
recovered.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">One of the Company’s customers represented approximately 8% and 11% of the consolidated trade
accounts receivable at December 31, 2010 and 2009, respectively. Sales to this customer accounted
for approximately 10% of the Company’s consolidated revenues in 2010 and 12% of the Company’s
consolidated revenue in both 2009 and 2008, and were primarily reported in the Consumer Packaging
and Packaging Services segments. The Company’s next largest customer comprised approximately 5%
of the Company’s consolidated revenues in 2010 and 4% in 2009 and 2008.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Research and Development</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Research and development costs are charged to expense as incurred and include salaries and other
directly related expenses. Research and development costs totaling $17,801 in 2010, $14,487 in 2009
and $15,888 in 2008, are included in “Selling, general and administrative expenses” in the
Company’s Consolidated Statements of Income.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Restructuring and Asset Impairment</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Costs associated with exit or disposal activities are recognized when the liability is incurred.
If assets become impaired as a result of a restructuring action, the assets are written down to
fair value, less estimated costs to sell, if applicable. A number of significant estimates and
assumptions are involved in the determination of fair value. The Company considers historical
experience and all available information at the time the estimates are made; however, the amounts
that are ultimately realized upon the sale of divested assets may differ from the estimated fair
values reflected in the Company’s Consolidated Financial Statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Cash and Cash Equivalents</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Cash equivalents are composed of highly liquid investments with an original maturity of three
months or less. Cash equivalents are recorded at cost, which approximates market.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Inventories</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Inventories are stated at the lower of cost or market. The last-in, first-out (LIFO) method is used
for the valuation of certain of the Company’s domestic inventories, primarily metal, internally
manufactured paper and paper purchased from third parties.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The LIFO method of accounting was used to determine the costs of approximately 21% and 23% of total
inventories at December 31, 2010 and 2009, respectively. The remaining inventories are determined
on the first-in, first-out (FIFO) method.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">If the FIFO method of accounting had been used for all inventories, total inventory would have been
higher by $17,168 and $19,155 at December 31, 2010 and 2009, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Property, Plant and Equipment</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Plant assets represent the original cost of land, buildings and equipment, less depreciation,
computed under the straight-line method over the estimated useful lives of the assets, and are
reviewed for impairment whenever events indicate the carrying value may not be recoverable.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Equipment lives generally range from three to 11 years, and buildings from 15 to 40 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Timber resources are stated at cost. Depletion is charged to operations based on the estimated
number of units of timber cut during the year.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Goodwill and Other Intangible Assets</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company evaluates its goodwill for impairment at least annually, and more frequently if
indicators of impairment are present. In performing the impairment test, the Company uses
discounted future cash flows to estimate the fair value of each reporting unit giving consideration
to multiples it believes could be obtained in a sale. If the fair value of the reporting unit
exceeds the carrying value of the reporting unit’s assets, including goodwill, there is no
impairment. Otherwise, if the carrying value of the reporting unit’s goodwill exceeds the implied
fair value of that goodwill, an impairment charge is recognized for the excess. Purchased goodwill
is not amortized.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Intangible assets are amortized, usually on a straight-line basis, over their respective useful
lives, which generally range from three to 20 years. The Company evaluates its intangible assets
for impairment whenever indicators of impairment exist. The Company has no intangibles with
indefinite lives.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Income Taxes</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company provides for income taxes using the asset and liability method. Under this method,
deferred tax assets and liabilities are determined based on differences between financial reporting
requirements and tax laws. Assets and liabilities are measured using the enacted tax rates and laws
that will be in effect when the differences are expected to reverse.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Derivatives</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company uses derivatives to mitigate the effect of fluctuations in some of its raw material
and energy costs, foreign currency fluctuations and interest rate movements. The Company purchases
commodities such as recovered paper, metal and energy generally at market or at fixed prices that
are established with the vendor as part of the purchase process for quantities expected to be
consumed in the ordinary course of business. The Company may enter into commodity futures or swaps
to reduce the effect of price fluctuations. The Company may use foreign currency forward contracts
and other risk management instruments to manage exposure to changes in foreign currency cash flows
and the translation of monetary assets and liabilities on the Company’s consolidated financial
statements. The Company is exposed to interest-rate fluctuations as a result of using debt as a
source of financing for its operations. The Company may from time to time use traditional,
unleveraged interest rate swaps to adjust its mix of fixed and variable rate debt to manage its
exposure to interest rate movements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company records its derivatives as assets or liabilities on the balance sheet at fair value
using published market prices or estimated values based on current price quotes and a discounted
cash flow model to estimate the fair market value of derivatives. Changes in the fair value of
derivatives are recognized either in net income or in other comprehensive income, depending on the
designated purpose of the derivative. It is the Company’s policy not to speculate in derivative
instruments.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Reportable Segments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company identifies its reportable segments by evaluating the level of detail reviewed by the
chief operating decision maker, gross profit margins, nature of products sold, nature of the
production processes, type and class of customer, methods used to distribute product, and nature of
the regulatory environment. Of these factors, the Company believes that the most significant are
the nature of its products and the type of customers served.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Contingencies</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to U.S. GAAP for accounting for contingencies, accruals for estimated losses are recorded
at the time information becomes available indicating that losses are probable and that the amounts
are reasonably estimable. Amounts so accrued are not discounted.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 2 - us-gaap:ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>2. New Accounting Pronouncements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In June 2009, the Financial Accounting Standards Board issued FAS No.168, “The FASB Accounting
Standards Codification<sup style="font-size: 85%; vertical-align: text-top">TM</sup> and the Hierarchy of Generally Accepted Accounting Principles —
a replacement of FASB Statement No. 162.” This statement established the FASB Accounting Standards
Codification (the “Codification”) as the source of authoritative U.S. generally accepted accounting
principles (GAAP). This statement became effective for financial statements issued for interim and
annual periods ending after September 15, 2009, and as of the effective date, all existing
accounting standard documents were superseded. Accordingly, in all of its subsequent public filings
the Company will reference the Codification as the sole source of authoritative literature.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">No significant new accounting guidance became effective for the Company during fiscal 2010. As of
December 31, 2010, there was no issued guidance pending future adoption that is expected to have a
significant impact on the Company’s financial statements when adopted.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 3 - us-gaap:BusinessCombinationDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>3. Acquisitions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company completed four acquisitions during 2010 at an aggregate cost of $137,835 in cash. These
acquisitions consisted of Associated Packaging Technologies, Inc. (APT), a supplier of thermoformed
containers to the frozen food industry, Madem Reels USA, Inc., a manufacturer of nailed wood and
plywood reels for the wire and cable industry, a small tube and core business in Canada, and a
small tube and core business in Greece. APT operates four manufacturing facilities (two in the
United States, one in Canada, and one in Ireland) and employs more than 400 persons. The all-cash
purchase price of APT, including the cost of paying off various obligations, was $119,968. The
acquisition is expected to generate annualized sales of approximately $150,000, which will be
accounted for in the Company’s Consumer Packaging segment. In conjunction with this acquisition,
the Company recorded net tangible assets of $72,895, identifiable intangibles of $22,100 and
goodwill of $24,973 (the majority of which is expected to be tax deductible). The all-cash purchase
price for Madem Reels was $10,714, plus contingent consideration of $500, which is expected to be
paid in the first quarter of 2011. The Madem Reels acquisition is expected to generate annualized
sales of approximately $9,000, which will be accounted for in All Other Sonoco. In conjunction with
this acquisition, the Company recorded net tangible assets of $8,263 and identifiable intangibles
of $2,451. The aggregate cost of the Canadian and Greek tube and core businesses was $7,153 in cash
and they are expected to generate annual sales of approximately $8,000 in the Tubes and Cores/Paper
segment. In conjunction with these acquisitions, the Company recorded identifiable intangibles of
$4,127 and other net tangible assets of $3,026.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Acquisition-related costs of $1,909 were incurred in connection with 2010 acquisitions. These
costs, consisting primarily of legal and professional fees, are included in “Selling, general and
administrative expenses” in the Company’s Consolidated Statements of Income.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company completed one acquisition during 2009 at an aggregate cost of $5,004 in cash plus
contingent consideration estimated at $2,208. This acquisition consisted of the injection molded
plastics spools and reels assets and business of EconoReel Corporation of Logan, Utah, and
additional manufacturing assets of Southern Reel, a subsidiary of EconoReel. In conjunction with
this acquisition, the Company recorded identifiable intangibles of $3,250, goodwill of $2,504,
tangible assets of $1,458, and a contingent purchase liability of $2,208. Also in 2009, the Company
recorded $500 of additional goodwill related to the payment of contingent consideration on its 2008
acquisition of Amtex Packaging, Inc.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company completed two acquisitions during 2008 at an aggregate cost of $5,535 in cash — Amtex
Packaging, Inc., a packaging fulfillment company included in the Packaging Services segment, and
VoidForm International Ltd., a Canada-based construction tube business included in the Tubes and
Cores/Paper segment. In conjunction with these acquisitions, the Company recorded identifiable
intangibles of $4,890, goodwill of $179, and other net tangible assets of $466.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company has accounted for these acquisitions as purchases and, accordingly, has included their
results of operations in the Company’s consolidated statements of net income from the respective
dates of acquisition. Pro forma results have not been provided, as the acquisitions were not
material to the Company’s financial statements individually, or in the aggregate, in any single
year.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 4 - us-gaap:RestructuringAndRelatedActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>4. Restructuring and Asset Impairment</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company has engaged in a number of restructuring actions over the past several years. Actions
initiated in 2010, 2009, 2008 and 2007 are reported as “2010 Actions,” “2009 Actions,” “2008
Actions” and “2007 Actions,” respectively. The Company has two formal restructuring plans that are
still active, although both were substantially complete at December 31, 2010. These are reported as
“Earlier Actions.”
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Following are the total restructuring and asset impairment charges, net of adjustments, recognized
by the Company during the periods presented:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>Year Ended December 31</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Restructuring-related charges:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2010 Actions
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6,650</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2009 Actions
</div></td>
<td> </td>
<td> </td>
<td align="right">4,201</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28,629</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2008 Actions
</div></td>
<td> </td>
<td> </td>
<td align="right">1,010</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,218</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38,235</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2007 Actions
</div></td>
<td> </td>
<td> </td>
<td align="right">520</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,739</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">15,807</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Earlier Actions
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(954</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">693</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,368</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total restructuring-related charges
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">11,427</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">26,801</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">57,410</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other asset impairments
</div></td>
<td> </td>
<td> </td>
<td align="right">12,572</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">42,651</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Restructuring/Asset impairment charges
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">23,999</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">26,801</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">100,061</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax benefit
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9,295</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8,458</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(34,158</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity method investments, net of tax
</div></td>
<td> </td>
<td> </td>
<td align="right">671</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">908</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Impact of Noncontrolling Interests,
net of tax
</div></td>
<td> </td>
<td> </td>
<td align="right">139</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,787</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,102</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total impact of Restructuring/Asset
impairment charges, net of tax
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15,514</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">23,038</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">61,801</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Restructuring and asset impairment charges are included in “Restructuring/Asset impairment
charges” in the Consolidated Statements of Income, except for restructuring and asset impairment
charges related to equity method investments, which are included in “Equity in earnings of
affiliates, net of tax.”
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company expects to recognize future additional costs totaling approximately $3,600 in
connection with previously announced restructuring actions. The Company believes that the majority
of these charges will be incurred and paid by the end of 2011. The Company continually evaluates
its cost structure, including its manufacturing capacity, and additional restructuring actions may
be undertaken.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>2010 Actions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During 2010, the Company initiated the consolidation of two manufacturing operations in the
Packaging Services segment into a single facility as well as the closures of two North American
tube and core plants and a North American molded plug manufacturing plant (part of the Tubes and
Cores/Paper segment). In
addition, the Company continued to realign its cost structure resulting in the elimination of 112
positions in 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Below is a summary of 2010 Actions and related expenses by type incurred and estimated to be
incurred through completion.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total Incurred to</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>2010 Actions</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Date</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total Cost</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Severance and Termination Benefits</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Tubes and Cores/Paper segment
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,402</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,802</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Consumer Packaging segment
</div></td>
<td> </td>
<td> </td>
<td align="right">705</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">705</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Packaging Services segment
</div></td>
<td> </td>
<td> </td>
<td align="right">1,555</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,555</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">All Other Sonoco
</div></td>
<td> </td>
<td> </td>
<td align="right">118</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">118</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Corporate
</div></td>
<td> </td>
<td> </td>
<td align="right">36</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Asset Impairment/Disposal of Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Tubes and Cores/Paper segment
</div></td>
<td> </td>
<td> </td>
<td align="right">889</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">889</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Packaging Services segment
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(136</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(136</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">All Other Sonoco
</div></td>
<td> </td>
<td> </td>
<td align="right">369</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">369</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Other Costs</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Tubes and Cores/Paper segment
</div></td>
<td> </td>
<td> </td>
<td align="right">59</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">559</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Consumer Packaging segment
</div></td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Packaging Services segment
</div></td>
<td> </td>
<td> </td>
<td align="right">333</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">483</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">All Other Sonoco
</div></td>
<td> </td>
<td> </td>
<td align="right">301</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">451</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total Charges and Adjustments</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6,650</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7,850</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the activity in the 2010 Actions restructuring accrual included
in “Accrued expenses and other” on the Company’s Consolidated Balance Sheets:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Asset</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Severance and</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Impairment/</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>2010 Actions</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Termination</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Disposal</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Accrual Activity</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Benefits</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>of Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Costs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liability, December 31, 2009</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010 charges
</div></td>
<td> </td>
<td> </td>
<td align="right">4,813</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,356</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">712</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,881</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjustments
</div></td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(234</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(231</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash receipts/(payments)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,523</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">560</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(654</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,617</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Asset write downs/disposals
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,682</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,682</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency translation
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liability, December 31, 2010</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,282</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">59</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,341</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">“Other Costs” consist primarily of lease termination costs and costs related to plant
closures including the cost of equipment removal, utilities, plant security, property taxes and
insurance. “Adjustments” consist primarily of gains on the sale of equipment.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company expects to pay the majority of the remaining 2010 Actions restructuring costs by the
end of 2011 using cash generated from operations.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>2009 Actions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During 2009, the Company closed a paper mill in the United States and five tube and core plants —
three in the United States, one in Europe, and one in Canada (all part of the Tubes and Cores/Paper
segment). The Company also closed two rigid paper packaging plants in the United States (part of
the Consumer Packaging segment), a fulfillment service center in Germany (part of the Packaging
Services segment), a
molded plastics facility in the United States (part of All Other Sonoco) and a wooden reel facility
in the United States (part of All Other Sonoco). The Company also sold a small Canadian recovered
paper brokerage business with annual sales of approximately $7,000 and continued to realign its
fixed cost structure resulting in the elimination of approximately 225 positions in 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Below is a summary of 2009 Actions and related expenses by type incurred and estimated to be
incurred through the end of the restructuring initiative.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Year Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>December 31,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Incurred to</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>2009 Actions</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Date</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total Cost</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Severance and Termination
Benefits</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Tubes and Cores/Paper segment
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,683</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">13,525</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">15,208</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">15,208</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Consumer Packaging segment
</div></td>
<td> </td>
<td> </td>
<td align="right">310</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,045</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,355</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,355</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Packaging Services segment
</div></td>
<td> </td>
<td> </td>
<td align="right">50</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,432</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,482</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,482</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">All Other Sonoco
</div></td>
<td> </td>
<td> </td>
<td align="right">195</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,238</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,433</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,433</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Corporate
</div></td>
<td> </td>
<td> </td>
<td align="right">262</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">665</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">927</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">927</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Asset Impairment/Disposal of
Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Tubes and Cores/Paper segment
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,264</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">6,383</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,119</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,119</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Consumer Packaging segment
</div></td>
<td> </td>
<td> </td>
<td align="right">20</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">556</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">576</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">576</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Packaging Services segment
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">All Other Sonoco
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">303</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">305</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">305</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Other Costs</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Tubes and Cores/Paper segment
</div></td>
<td> </td>
<td> </td>
<td align="right">2,869</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,916</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,785</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,585</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Consumer Packaging segment
</div></td>
<td> </td>
<td> </td>
<td align="right">746</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">79</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">825</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,300</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Packaging Services segment
</div></td>
<td> </td>
<td> </td>
<td align="right">180</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">145</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">325</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">325</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">All Other Sonoco
</div></td>
<td> </td>
<td> </td>
<td align="right">148</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">335</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">483</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">483</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total Charges and Adjustments</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,201</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28,629</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">32,830</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">34,105</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the activity in the 2009 Actions restructuring accrual included
in “Accrued expenses and other” on the Company’s Consolidated Balance Sheets:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Asset</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Severance and</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Impairment/</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>2009 Actions</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Termination</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Disposal</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Accrual Activity</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Benefits</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>of Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Costs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liability, December 31, 2008</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2009 charges
</div></td>
<td> </td>
<td> </td>
<td align="right">19,180</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,025</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,475</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29,680</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjustments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(275</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(776</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,051</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash receipts/(payments)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,227</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,775</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,467</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9,919</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Asset write downs/disposals
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,024</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,024</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency translation
</div></td>
<td> </td>
<td> </td>
<td align="right">147</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">150</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liability, December 31, 2009</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8,825</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8,836</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010 charges
</div></td>
<td> </td>
<td> </td>
<td align="right">1,336</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">420</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,943</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,699</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjustments
</div></td>
<td> </td>
<td> </td>
<td align="right">1,164</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,662</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,498</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash receipts/(payments)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,603</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">4,885</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,954</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,672</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Asset write downs/disposals
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,643</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,643</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency translation
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(26</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(26</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liability, December 31, 2010</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,696</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,696</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During 2010, proceeds of $4,621 were received from the sale of the land and building
associated with a former tube and core manufacturing facility in Europe that had been closed in
2009. A gain of $2,172 was recognized on the sale and is reflected under “Adjustments” in the table
above. Additionally, adjustments totaling $1,164 were made in 2010 to the estimated severance
charges that had been recognized late in 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During 2009, proceeds of $2,775 were received from the disposal of a Canadian recovered paper
brokerage business. The net book value of property, plant and equipment written off against the
sales proceeds totaled $125. Also written off was associated goodwill totaling $1,643. The
resulting gain of $1,007 is included under “2009 charges” in the table above.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company expects to pay the majority of the remaining 2009 Actions restructuring costs by the
end of 2011 using cash generated from operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>2008 Actions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During 2008, the Company initiated the following closures in its Tubes and Cores/Paper segment: ten
tube and core plants, three in the United States, three in Canada, two in the United Kingdom, one
in Spain, and one in China; two paper mills, one in the United States and one in Canada; and a
specialty paper machine in the United States. In addition, closures were initiated of four rigid
packaging plants in the United States (part of the Consumer Packaging segment) and two fulfillment
centers in the United States (part of the Packaging Services segment). The Company also
realigned its fixed cost structure resulting in the permanent elimination of approximately 125
salaried positions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Below is a summary of 2008 Actions and related expenses by type incurred and estimated to be
incurred through the end of the restructuring initiative.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>Year Ended December 31,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>2008 Actions</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Incurred to Date</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated Total Cost</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Severance and Termination Benefits</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Tubes and Cores/Paper segment
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(32</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">3,036</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8,221</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">11,225</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">11,225</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Consumer Packaging segment
</div></td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(375</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">4,102</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,732</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,732</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Packaging Services segment
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">87</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,368</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,443</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,443</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">All Other Sonoco
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(25</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">563</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">538</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">538</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Corporate
</div></td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">106</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,734</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,854</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,854</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Asset Impairment/Disposal of Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Tubes and Cores/Paper segment
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(437</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">57</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,949</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,569</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,569</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Consumer Packaging segment
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">126</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,706</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,832</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,832</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Packaging Services segment
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(365</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">365</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Other Costs</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Tubes and Cores/Paper segment
</div></td>
<td> </td>
<td> </td>
<td align="right">1,360</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,606</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,245</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,211</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,136</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Consumer Packaging segment
</div></td>
<td> </td>
<td> </td>
<td align="right">137</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">925</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">974</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,036</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,036</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Corporate
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total Charges and Adjustments</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,010</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8,218</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">38,235</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">47,463</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">48,388</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the activity in the 2008 Actions restructuring accrual included
in “Accrued expenses and other” on the Company’s Consolidated Balance Sheets:
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Severance</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Asset</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>and</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Impairment/</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>2008 Actions</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Termination</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Disposal</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Accrual Activity</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Benefits</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>of Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Costs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liability, December 31, 2008</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">11,893</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">357</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">12,250</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2009 charges
</div></td>
<td> </td>
<td> </td>
<td align="right">3,226</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">792</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,649</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,667</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjustments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(372</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(974</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(103</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,449</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash receipts/(payments)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,692</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,149</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,242</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(15,785</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Asset write downs/disposals
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(967</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(967</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency translation
</div></td>
<td> </td>
<td> </td>
<td align="right">185</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">179</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Pension curtailment/settlement
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(941</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(941</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liability, December 31, 2009</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,240</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">714</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,954</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2010 charges
</div></td>
<td> </td>
<td> </td>
<td align="right">87</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,730</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,817</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjustments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(137</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(437</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(233</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(807</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash receipts/(payments)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,926</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">97</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,958</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,787</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Asset write downs/disposals
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">340</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">340</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency translation
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(36</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(39</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liability, December 31, 2010</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">228</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">250</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">478</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">“Other Costs” in 2010 consist primarily of costs related to plant closures including the cost
of equipment removal, utilities, plant security, property taxes and insurance. “Adjustments” in
2010 consist primarily of gains on the sale of equipment.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">“Other Costs” in 2009 consist primarily of costs related to plant closures and settlement charges
of $941 related to a defined benefit pension plan maintained for the hourly union employees of the
Canadian paper mill. “Adjustments” in 2009 reflect a $974 gain from the sale of a building at a
tube and core operation in Canada for which the Company received proceeds of $1,149.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company expects to pay the majority of the remaining 2008 Actions restructuring costs by the
end of 2011 using cash generated from operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>2007 Actions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In 2007, the Company initiated the closures of the following operations: a metal ends plant in
Brazil (Consumer Packaging segment), a rigid packaging plant in the United States (part of the
Consumer Packaging segment), a paper mill in China (part of the Tubes and Cores/Paper segment), a
molded plastics plant in Turkey (part of All Other Sonoco), and a point-of-purchase display
manufacturing plant in the United States (part of the Packaging Services segment).
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Below is a summary of 2007 Actions and related expenses incurred, and estimated to be incurred, by
segment through the end of the restructuring initiative.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>Year Ended December 31,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>2007 Actions</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Incurred to Date</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated Total Cost</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Tubes and Cores/Paper segment
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">430</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(10,881</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">6,667</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2,636</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2,536</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Consumer Packaging segment
</div></td>
<td> </td>
<td> </td>
<td align="right">90</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">149</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,931</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,665</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,665</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Packaging Services segment
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">270</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">397</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">397</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">All Other Sonoco
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(61</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">800</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">800</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total Charges and Adjustments</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">520</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(10,739</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">15,807</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25,226</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25,326</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Sales proceeds of $14,671, net of commissions, were received in December 2008 related to the
sale of the Company’s paper mill in China. At the time these proceeds were received, the book value
of property, plant and equipment and land use rights (an intangible asset) was written off. The
remaining sales proceeds totaling $11,211 were received during 2009, the full amount of which was
reflected as a net gain upon receipt. At the time of the sale, the Company believed collectibility
was uncertain; therefore, proceeds from this transaction were recorded on a cash basis and gains
recognized only to the extent that cash collected exceeded the book value of the assets sold.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The accrual for 2007 Actions totaled $40 and $45 as of December 31, 2010 and 2009, respectively.
The Company expects to pay the majority of the remaining 2007 Actions restructuring costs during
2011 using cash generated from operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the years ended December 31, 2010, 2009 and 2008, the Company also recorded noncash,
after-tax offsets in the amounts of $(139), $(3,805), and $2,971, respectively, to reflect the
impact of the noncontrolling interest holder’s portion of gains and losses associated with the sale
of the paper mill in China discussed above. The Company also recorded noncash, after-tax offsets in
the amounts of $0, $18, and $1,131, to reflect the impact of another noncontrolling interest holder’s
portion of restructuring costs charged to expense during the years ended December 31, 2010, 2009
and 2008, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Earlier Actions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Earlier Actions are comprised of two formal restructuring plans, the 2006 Plan and the 2003 Plan,
both of which included a number of plant closures and workforce reductions. During 2010, the
Company completed the sale of the land and buildings associated with a former paper mill in France
resulting in the recognition of a $1,204 gain. This gain, which partially offsets asset impairment
charges recognized in 2006 when the decision was made to close the facility, is included in
“Restructuring/Asset impairment charges” in the Company’s Consolidated Statements of Income. At
December 31, 2010, the remaining restructuring accrual for Earlier Actions was $463. The accrual,
included in “Accrued expenses and other” on the Company’s Consolidated Balance Sheet, relates
primarily to a building lease termination. The Company expects to recognize future pretax charges
of approximately $100 associated with Earlier Actions, and expects both the liability and the
future costs to be fully paid by the end of 2012 using cash generated from operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Other Asset Impairments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In addition to the restructuring charges discussed above, the Company recorded a pretax asset
impairment charge of $12,572 in 2010 as a result of notification from a large customer that the
Company’s contract to provide certain packaging would not be renewed in its entirety. The expected
loss of business caused the Company to conclude that certain affected assets in its Consumer
Packaging segment had been impaired.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In 2008, the Company recorded a pretax charge totaling $42,651, to record the
impairment of a subordinated note receivable and preferred equity interest received in 2003 as part
of the sale of its High Density Film business. The buyer filed a petition for relief under Chapter
11 with the United States Bankruptcy Court for the District of Delaware that included a plan of
reorganization, which was subsequently approved by the court. As part of the plan of
reorganization, the Company’s preferred equity interest and its subordinated note receivable were
extinguished with no recovery by the Company.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">These other asset impairment charges are included in “Restructuring/Asset impairment charges” in
the Company’s Consolidated Statements of Income.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 5 - us-gaap:CashAndCashEquivalentsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>5. Cash and Cash Equivalents</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">At December 31, 2010 and 2009, outstanding checks totaling $21,589 and $21,069, respectively, were<br />
included in “Payable to suppliers” on the Company’s Consolidated Balance Sheets. In addition,<br />
outstanding payroll checks of $781 and $1,372 as of December 31, 2010 and 2009, respectively, were<br />
included in “Accrued wages and other compensation” on the Company’s Consolidated Balance Sheets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company uses a notional pooling arrangement with an international bank to help manage global
liquidity requirements. Under this pooling arrangement, the Company and its participating
subsidiaries may maintain either cash deposit or borrowing positions through local currency
accounts with the bank, so long as the aggregate position of the global pool is a notionally
calculated net cash deposit. Because it
maintains a security interest in the cash deposits, and has the right to offset the cash deposits
against the borrowings, the bank provides the Company and its participating subsidiaries favorable
interest terms on both. The Company’s Consolidated Balance Sheets reflect a net cash deposit under
this pooling arrangement of $8,877 and $7,061 as of December 31, 2010 and 2009, respectively.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 6 - us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>6. Property, Plant and Equipment</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Details of the Company’s property, plant and equipment at December 31 are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Land
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">71,663</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">74,281</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Timber resources
</div></td>
<td> </td>
<td> </td>
<td align="right">39,629</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">39,348</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Buildings
</div></td>
<td> </td>
<td> </td>
<td align="right">428,807</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">429,360</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Machinery and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">2,430,514</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,343,117</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Construction in progress
</div></td>
<td> </td>
<td> </td>
<td align="right">94,291</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">54,221</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">3,064,904</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,940,327</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accumulated depreciation and depletion
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,120,768</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,013,498</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Property, plant and equipment, net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">944,136</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">926,829</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Estimated costs for completion of capital additions under construction totaled approximately
$67,000 at December 31, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Depreciation and depletion expense amounted to $156,529 in 2010, $161,180 in 2009 and $170,032 in
2008.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company has certain properties and equipment that are leased under noncancelable operating
leases. Future minimum rentals under noncancelable operating leases with terms of more than one
year are as follows: 2011 — $34,000; 2012 — $28,500; 2013 — $20,000; 2014— $11,700; 2015 -
$8,200 and thereafter — $12,000. Total rental expense under operating leases was approximately
$49,500 in 2010, $50,100 in 2009 and $52,900 in 2008.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 7 - us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>7. Goodwill and Other Intangible Assets</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Goodwill</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The changes in the carrying amount of goodwill for the year ended December 31, 2010, are as
follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Tubes and Cores</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Consumer</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Packaging</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>/Paper</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Packaging</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Services</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>All Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Segment</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Segment</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Segment</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Sonoco</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance as of January 1, 2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">236,875</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">357,798</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">150,082</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">68,775</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">813,530</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill on acquisitions
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24,973</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24,973</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(216</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(216</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency translation
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,022</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">6,613</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(130</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,461</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance as of December 31,
2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">231,637</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">389,384</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">150,082</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">68,645</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">839,748</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company recorded $24,973 of goodwill in 2010 in connection with its acquisition of the
thermoformed container business of Associated Packaging Technologies, Inc.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">“Other” consists of goodwill associated with a small Chilean tube and core business that was
contributed to a new joint venture in 2010. The Company accounts for its 19.5% ownership in the new
joint venture under the cost method.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company completed its most recent annual goodwill impairment testing during the third quarter
of 2010. Based on the results of this evaluation, the Company concluded that there was no
impairment of goodwill for any of its reporting units. For 2010 testing purposes, the fair values
of the Company’s reporting units were estimated based on projections of future years’ operating
results and associated cash flows, together with comparable trading and transaction multiples. The
Company’s projections incorporated management’s expectations for future growth and, where
applicable, improved operating margins. Should such growth and/or margin improvement not
materialize as projected, or if the Company’s assessments of the relevant facts and circumstances
change, noncash impairment charges may be required. Reporting units with significant goodwill whose
results need to show improvement included Tubes & Cores/Paper — Europe, Matrix Packaging, Flexible
Packaging, Packaging Services, and Rigid Paper Containers — Australia/New Zealand. Total goodwill
associated with these reporting units was approximately $102,000, $130,000, $94,000, $150,000, and
$6,000, respectively at December 31, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Other Intangible Assets</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Details at December 31 are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other Intangible Assets, Gross:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Patents
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,264</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,592</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Customer lists
</div></td>
<td> </td>
<td> </td>
<td align="right">180,673</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">161,007</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Land use rights
</div></td>
<td> </td>
<td> </td>
<td align="right">354</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">340</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Supply agreements
</div></td>
<td> </td>
<td> </td>
<td align="right">1,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,000</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">16,409</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,830</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other Intangible Assets, Gross
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">200,700</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">172,769</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accumulated Amortization
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(70,300</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(57,725</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other Intangible Assets, Net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">130,400</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">115,044</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company recorded $28,678 of identifiable intangibles in connection with 2010 acquisitions.
Of this total, $19,882 related to customer lists and $8,796 related to other intangible assets,
primarily proprietary technology, as well as trademarks, a patent and a non-compete agreement. The
customer lists will be
amortized over a period of 12 to 15 years while the other intangible assets will be amortized over
lives ranging from three to 10 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Aggregate amortization expense on intangible assets was $13,136, $12,407 and $13,002 for the years
ended December 31, 2010, 2009 and 2008, respectively. Amortization expense on intangible assets is
expected to approximate $14,300 in 2011, $13,700 in 2012, $13,400 in 2013, $13,100 in 2014 and
$11,800 in 2015.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 8 - us-gaap:DebtDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>8. Debt</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Debt at December 31 was as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commercial paper, average rate of 0.32% in 2010 and 0.67% in 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">30,000</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">6.75% debentures due November 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">99,986</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">6.5% debentures due November 2013
</div></td>
<td> </td>
<td> </td>
<td align="right">119,937</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">248,984</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">5.625% debentures due November 2016
</div></td>
<td> </td>
<td> </td>
<td align="right">75,057</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">149,537</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">9.2% debentures due August 2021
</div></td>
<td> </td>
<td> </td>
<td align="right">4,321</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">41,305</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">5.75% debentures due November 2040
</div></td>
<td> </td>
<td> </td>
<td align="right">350,783</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign denominated debt, average rate of 8.4% in 2010 and 9.4%
in 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">27,760</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27,229</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other notes
</div></td>
<td> </td>
<td> </td>
<td align="right">13,032</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,755</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total debt
</div></td>
<td> </td>
<td> </td>
<td align="right">620,890</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">580,796</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Less current portion and short-term notes
</div></td>
<td> </td>
<td> </td>
<td align="right">16,949</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">118,053</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term debt
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">603,941</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">462,743</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company currently operates a $350,000 commercial paper program, supported by a committed bank
credit facility of the same amount. On October 18, 2010, the Company entered into an amended and
restated credit agreement for that facility with a syndicate of eight banks. The new $350,000 bank
credit facility is committed through October 2015, and replaces a similar facility established on
May 3, 2006. If circumstances were to prevent the Company from issuing
commercial paper, it has the contractual right to draw funds directly on the underlying bank credit
facility. Outstanding commercial paper, a component of the Company’s long-term debt, totaled
$30,000 at December 31, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Under Internal Revenue Service rules, U.S. corporations may borrow funds from foreign
subsidiaries for up to 30 days without unfavorable tax consequences. In 2008, this rule was
temporarily amended to extend the period allowed to 60 days. Beginning January 1, 2011, this
temporary extension will no longer apply to the Company. At various times throughout 2010 and 2009,
including each year end, the Company utilized this rule to access offshore cash in lieu of issuing
commercial paper. Amounts outstanding under the rule at December 31, 2010 and 2009 were $100,000
and $10,000, respectively. These short-term lending arrangements were subsequently settled within
the 60 day provision, resulting in equivalent increases in commercial paper outstanding and cash on
hand. Depending on its immediate offshore cash needs, the Company may choose to access such funds
again in the future as allowed under the rule.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In November 2010, the Company issued through a public offering $350,000 of 5.75% debentures due
November 2040. The offering was made pursuant to an effective shelf registration statement.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Concurrent with the offering, the Company commenced cash tender offers to purchase a portion of its
outstanding 6.5%, 5.625% and 9.2% debentures. Upon expiration of the tenders, the Company
repurchased 52.93% of its outstanding 6.5% notes, 49.83% of its outstanding 5.625% notes, and
89.54% of its outstanding 9.2% notes for a total cash cost of $293,277, as shown in the table
below:
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Principal</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Premium and</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total Cash</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other Amounts</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Paid to</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Tendered</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Paid</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Bondholders</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">6.5% debentures due November 2013
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">132,330</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">21,035</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">153,365</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">5.625% debentures due November 2016
</div></td>
<td> </td>
<td> </td>
<td align="right">74,750</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,712</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">87,462</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">9.2% debentures due August 2021
</div></td>
<td> </td>
<td> </td>
<td align="right">36,984</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,466</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">52,450</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">244,064</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">49,213</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">293,277</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In conjunction with the tenders, the Company wrote off a proportional share of unamortized
gains/losses on termination of interest rate swaps, unamortized bond issuance costs, and
unamortized original issue discounts associated with each of the debentures tendered. The write
offs resulted in a net noncash credit of $(1,271), which combined with premium and other amounts of
$49,213 paid to bondholders, and other cash costs of the tender totaling $675, resulted in a pretax loss
from the early extinguishment of debt in 2010 totaling $48,617.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Proceeds from the 5.75% debentures, together with cash on hand, were used to fund the tenders and
the repayment of its 6.75% debentures upon their maturity in November 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">At
December 31, 2010, the Company had approximately $128,000 available under unused short-term
lines of credit. These short-term lines of credit are for general Company purposes, with interest
at mutually agreed-upon rates.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">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 covenant currently requires
the Company to maintain a minimum level of interest coverage, and a minimum level of net worth, as
defined. As of December 31, 2010, the Company had substantial tolerance above the minimum levels
required under these covenants.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The principal requirements of debt maturing in the next five years are: 2011 — $16,949; 2012 —
$2,109; 2013 — $134,165; 2014 — $1,775 and 2015 — $31,772.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 9 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>9. Financial Instruments and Derivatives</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the carrying amounts and fair values of the Company’s significant
financial instruments where the carrying amount differs from the fair value.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>December 31, 2010</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>December 31, 2009</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Carrying</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Carrying</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term debt
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">603,941</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">624,786</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">462,743</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">473,573</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The carrying value of cash and cash equivalents, short-term debt and long-term variable-rate debt
approximates fair value. The fair value of long-term debt is based on quoted market prices or is
determined by discounting future cash flows using interest rates available to the Company for
issues with similar terms and average maturities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><u>Cash Flow Hedges</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">At December 31, 2010 and 2009, the Company had derivative financial instruments outstanding to
hedge anticipated transactions and certain asset and liability related cash flows. To the extent
considered effective, the changes in fair value of these contracts are recorded in other
comprehensive income and reclassified to income or expense in the period in which the hedged item
impacts earnings.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Commodity Cash Flow Hedges</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company has entered into certain derivative contracts to manage the cost of anticipated
purchases of natural gas and aluminum. At December 31, 2010, natural gas swaps covering
approximately 6.0 million MMBTUs were outstanding. These contracts represent approximately 70% and
50% of anticipated U.S. and Canadian usage for 2011 and 2012 respectively. Additionally, the
Company had swap contracts covering 4,528 metric tons of aluminum representing approximately 36%
and 3% of anticipated usage for 2011 and 2012, respectively, and 51,600 short tons of old
corrugated containers (OCC) representing approximately 4% of anticipated usage for 2011. The fair
values of the Company’s commodity cash flow hedges were in loss positions totaling $12,421 and
$8,294 at December 31, 2010 and 2009, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Foreign Currency Cash Flow Hedges</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company has entered into forward contracts to hedge certain anticipated foreign currency
denominated sales and purchases forecasted to occur in 2011. At December 31, 2010, the net
position of these contracts was to purchase approximately 63.5 million Canadian dollars, 1.3
million British pounds, 2.4 million euros, 10.1 billion Colombian pesos and 204.7 million Mexican
pesos and to sell approximately 5.2 million Australian dollars, 2.9 million New Zealand dollars,
12.1 million Malaysian ringgits, 12.1 billion Indonesian rupiah, 116.8 million Thailand baht, and
51.3 million Russian roubles. The fair value of these foreign currency cash flow hedges was $229
at December 31, 2010. The fair value of foreign currency cash flow hedges at December 31, 2009 was
$721.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Interest Rate Cash Flow Hedge</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During September and October of 2010, the Company entered into derivative financial instruments
with a total notional amount of $150,000 to lock the treasury component of the interest rate on a
portion of the contemplated debt issuance that occurred in November 2010. On October 25, 2010, the
derivatives were terminated concurrent with the pricing of the related debt issuance, and the
Company received a cash payment of $3,540. This gain was reclassified from Accumulated other
comprehensive loss and netted against the carrying value of the bonds issued. This gain will be
amortized over the life of the bonds and netted against interest costs.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><u>Fair Value Hedges</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">
During 2009, the Company entered into an interest rate derivative to swap $150,000
notional value of its 6.5% debentures due November 2013 to a floating rate. On
September 21, 2010, the swap was settled prior to maturity and the Company received a
cash payment of $5,939. The related fair-value adjustment reflected as an increase in
the carrying value of the bonds that was recorded in conjunction with this hedge was
$5,616. A portion of these bonds was retired early during the fourth quarter in conjunction
with the Company’s tender offer. The remaining unamortized fair-value adjustment at
December 31, 2010, was $2,422 and will be amortized over the life of the bonds and
netted against interest costs.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><u>Other Derivatives</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company routinely enters into forward contracts or swaps to economically hedge the currency
exposure of intercompany debt and existing foreign currency denominated receivables and payables.
The Company does not apply hedge accounting treatment under ASC 815 for these instruments. As
such, changes in fair value are recorded directly to income and expense in the periods that they
occur. At December 31, 2010, the net position of these contracts, all of which were short term,
was to purchase 4.6 million Canadian dollars, 1.0 million British pounds, 33.0 million euros, and
2.6 billion Colombian pesos. The fair value of these derivatives was $60 at December 31, 2010. At
December 31, 2009 the fair value of such derivatives was $795.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company has determined all hedges to be highly effective and as a result only immaterial
ineffectiveness has been recorded during the periods presented.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the location and fair values of the Company’s derivative
instruments at December 31, 2010:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Description</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Balance Sheet Location</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives designated as hedging instruments:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity Contracts
</div></td>
<td> </td>
<td colspan="3" align="left">Other Current Assets</td>
<td> </td>
<td align="left">$</td>
<td align="right">429</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity Contracts
</div></td>
<td> </td>
<td colspan="3" align="left">Other Long Term Assets</td>
<td> </td>
<td align="left">$</td>
<td align="right">79</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity Contracts
</div></td>
<td> </td>
<td colspan="3" align="left">Other Current Liabilities</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(10,344</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity Contracts
</div></td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="left">Other Long Term Liabilities</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2,585</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign Exchange Contracts
</div></td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="left">Other Current Assets</td>
<td> </td>
<td align="left">$</td>
<td align="right">554</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign Exchange Contracts
</div></td>
<td> </td>
<td colspan="3" align="left">Other Current Liabilities</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(325</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives not designated as hedging instruments:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign Exchange Contracts
</div></td>
<td> </td>
<td colspan="3" align="left">Other Current Assets</td>
<td> </td>
<td align="left">$</td>
<td align="right">110</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign Exchange Contracts
</div></td>
<td> </td>
<td colspan="3" align="left">Other Current Liabilities</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(50</td>
<td nowrap="nowrap">)</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the effect of the Company’s derivative instruments on
financial performance for the twelve months ended December 31, 2010:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Location of Gain or</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amount of Gain or</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amount of Gain or</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Location of Gain or</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amount of Gain or</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Loss) Recognized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Loss) Recognized</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Loss) Recognized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Loss) Reclassified</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Loss) Reclassified</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>in Income on</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>in Income on</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>in OCI on</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>from Accumulated</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>from Accumulated</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Derivative</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Derivative</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Derivative</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>OCI Into Income</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>OCI Into Income</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Ineffective</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Ineffective</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Description</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Portion)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Portion)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td colspan="5" align="left"><b>Derivatives in Cash Flow Hedging
Relationships:</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign
Exchange Contracts
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,098</td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" align="left">Net sales</td>
<td> </td>
<td align="left">$</td>
<td align="right">3,756</td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" align="left">Net sales</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="3" align="center">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,165</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Cost of sales</td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity Contracts
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(11,552</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(7,445</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(255</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Fair value hedge
derivatives:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest Rate Swap
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="3" align="center">Interest expense</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(121</td>
<td nowrap="nowrap">)</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="56%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Location of Gain</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>or(Loss)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Recognized in</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gain or (Loss)</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>Derivatives not designated as hedging</b> <b>instruments:</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Income Statement</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Recognized</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign Exchange
Contracts
</div></td>
<td> </td>
<td colspan="2" align="left">Cost of sales</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">36</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td colspan="2" align="left" nowrap="nowrap">Selling, general and administrative</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">40</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the effect of the Company’s derivative instruments on
financial performance for the twelve months ended December 31, 2009:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Location of Gain</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amount of Gain</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>or (Loss)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>or (Loss)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Location of Gain or</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amount of Gain or</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amount of Gain or</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Reclassified from</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Reclassified from</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Loss) Recognized in</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Loss) Recognized</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Loss) Recognized in</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Accumulated OCI</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Accumulated OCI</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Income on</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>in Income on</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>OCI on Derivative</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Into Income</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Into Income</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Derivative</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Derivative</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Description</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Ineffective Portion)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Ineffective Portion)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td colspan="5" align="left"><b>Derivatives in Cash Flow Hedging</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Relationships:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign
Exchange Contracts
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,538</td>
<td> </td>
<td> </td>
<td colspan="3" align="left">Net sales</td>
<td> </td>
<td align="left">$</td>
<td align="right">5,201</td>
<td> </td>
<td> </td>
<td colspan="3" align="left">Net sales</td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="3" align="left">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(3,297</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="left">Cost of sales</td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity Contracts
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(13,679</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="left">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(25,462</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="left">Cost of sales</td>
<td> </td>
<td align="left">$</td>
<td align="right">328</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Fair value hedge
derivatives:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest Rate Swap
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="3" align="left">Interest expense</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(75</td>
<td nowrap="nowrap">)</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Location of Gain</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>or (Loss)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Recognized in</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gain or (Loss)</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>Derivatives not designated as hedging</b> <b>instruments:</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Income Statement</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Recognized</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign
Exchange Contracts
</div></td>
<td> </td>
<td colspan="2" align="left">Cost of sales</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">541</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td colspan="2" align="left" nowrap="nowrap">Selling, general and administrative</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">717</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 10 - us-gaap:FairValueDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>10. Fair Value Measurements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following tables set forth information regarding the Company’s financial assets and financial
liabilities that are measured at fair value at December 31, 2010 and 2009. The Company does not
currently have any nonfinancial assets or liabilities that are recognized or disclosed at fair
value on a recurring basis.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s pension plan assets comprise more than 98% of its total postretirement benefit plan
assets. The assets of the Company’s various pension plans and retiree health and life insurance
plans are largely invested in the same funds and investments and in similar proportions and, as
such, are not shown separately, but are combined in the tables below. Postretirement benefit plan
assets are netted against postretirement benefit obligations to determine the funded status of each
plan. The funded status is recognized in the Company’s Consolidated Balance Sheets as shown in Note
12.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>Fair Value Measurements at Reporting Date Using</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Quoted Market</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Prices in Active</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Market for</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Identical</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Observable</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unobservable</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Assets/Liabilities</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Inputs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Inputs</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Description</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Level 1)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Level 2)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Level 3)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Derivatives
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,172</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,172</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred Compensation Plan Assets
</div></td>
<td> </td>
<td> </td>
<td align="right">2,236</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,236</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Postretirement Benefit Plan Assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Mutual Funds (a)
</div></td>
<td> </td>
<td> </td>
<td align="right">837,816</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">837,816</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Common Stocks
</div></td>
<td> </td>
<td> </td>
<td align="right">118,844</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">118,844</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Short-Term Investments (b)
</div></td>
<td> </td>
<td> </td>
<td align="right">7,958</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,958</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Hedge Fund of Funds (c)
</div></td>
<td> </td>
<td> </td>
<td align="right">59,913</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">59,913</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Real Estate (d)
</div></td>
<td> </td>
<td> </td>
<td align="right">36,970</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36,970</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Cash and Accrued Income
</div></td>
<td> </td>
<td> </td>
<td align="right">1,388</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,388</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Forward Contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">535</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">535</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
Postretirement Benefit Plan Assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,063,424</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">120,232</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">846,309</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">96,883</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Derivatives
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">13,304</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">13,304</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr style="font-size: 3pt">
<td width="3%"> </td>
<td width="1%"> </td>
<td width="96%"> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(a)</td>
<td> </td>
<td>Mutual fund investments are comprised predominantly of equity securities of U.S.
corporations with large capitalizations. This category also includes funds invested in corporate
equities in international and emerging markets and funds invested in long-term domestic bonds.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(b)</td>
<td> </td>
<td>This category includes several money market funds used for managing overall liquidity.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(c)</td>
<td> </td>
<td>This category includes investments in a number of funds representing a variety of strategies
intended to diversify risks and reduce volatility. It includes event-driven credit and equity
investments targeted at economic policy decisions, long and short positions in U.S. and
international equities, arbitrage investments, and emerging market equity investments.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(d)</td>
<td> </td>
<td>This category includes funds invested in real estate (including office, industrial,
residential, and retail) primarily throughout the United States.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>Fair Value Measurements at Reporting Date Using</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Quoted Market</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Prices in Active</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Market for</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Identical</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Observable</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unobservable</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Assets/Liabilities</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Inputs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Inputs</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Description</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Level 1)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Level 2)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Level 3)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Derivatives
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,787</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,787</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred Compensation Plan Assets
</div></td>
<td> </td>
<td> </td>
<td align="right">1,998</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,998</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Postretirement Benefit Plan Assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Mutual Funds (a)
</div></td>
<td> </td>
<td> </td>
<td align="right">746,569</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">746,569</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Common Stocks
</div></td>
<td> </td>
<td> </td>
<td align="right">103,761</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">103,761</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Short-Term Investments (b)
</div></td>
<td> </td>
<td> </td>
<td align="right">78,324</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">78,324</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Hedge Fund of Funds (c)
</div></td>
<td> </td>
<td> </td>
<td align="right">37,270</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">37,270</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Real Estate (d)
</div></td>
<td> </td>
<td> </td>
<td align="right">32,624</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32,624</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Cash Surrender Value of Life
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:60px; text-indent:-15px">Insurance Policies, net of
loans
</div></td>
<td> </td>
<td> </td>
<td align="right">5,685</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,685</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Cash and Accrued Income
</div></td>
<td> </td>
<td> </td>
<td align="right">1,968</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,968</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Guaranteed Investment Contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">68</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">68</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Forward Contracts
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
Postretirement Benefit Plan Assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,006,263</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">105,729</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">830,572</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">69,962</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Derivatives
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">11,113</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">11,113</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 3pt; width: 18%; border-top: 0px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(a)</td>
<td> </td>
<td>Mutual fund investments are comprised predominantly of equity securities of U.S.
corporations with large capitalizations. This category also includes funds invested in corporate
equities in international and emerging markets and funds invested in long-term domestic bonds.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(b)</td>
<td> </td>
<td>This category includes several money market funds used for managing overall liquidity.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(c)</td>
<td> </td>
<td>This category includes investments in a number of funds representing a variety of strategies
intended to diversify risks and reduce volatility. It includes event-driven credit and equity
investments targeted at economic policy decisions, long and short positions in U.S. and
international equities, arbitrage investments, and emerging market equity investments.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(d)</td>
<td> </td>
<td>This category includes funds invested in real estate (including office, industrial,
residential, and retail) primarily throughout the United States.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth information summarizing the changes in fair value of the
Company’s Level 3 assets for the year ended December 31, 2010.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="23%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gain/(Loss)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gain/(Loss)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Foreign</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Dec. 31,</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>on Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>on Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Currency</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Dec.</b> <b>31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Purchases</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Sales</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Sold</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Held</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Translation</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="29" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Level 3 Assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Hedge Fund of Funds
</div></td>
<td> </td>
<td> </td>
<td align="right">37,270</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50,000</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(26,267</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,090</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">59,913</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Real Estate
</div></td>
<td> </td>
<td> </td>
<td align="right">32,624</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,015</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">331</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36,970</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Guaranteed
Investment Contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">68</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(68</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="29" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total Level 3 Assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">69,962</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">50,000</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(26,335</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,090</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">4,015</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">331</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">96,883</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="29" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth information summarizing the changes in fair value of the
Company’s Level 3 assets for the year ended December 31, 2009.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="23%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gain/(Loss)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gain/(Loss)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Foreign</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Dec. 31,</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>on Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>on Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Currency</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Dec. 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Purchases</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Sales</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Sold</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Held</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Translation</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="29" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Level 3 Assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Hedge Fund of Funds
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">36,314</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">35,605</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(35,605</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(709</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">1,665</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">37,270</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Real Estate
</div></td>
<td> </td>
<td> </td>
<td align="right">44,056</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">319</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(416</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">155</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,890</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">400</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32,624</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Guaranteed
Investment Contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">74</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">68</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="29" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total Level 3 Assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">80,444</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">35,927</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(36,030</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(554</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(10,225</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">400</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">69,962</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="29" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The fair value of Level 3 real estate investments is determined by the fund sponsor using
independent appraisers to value the underlying properties on an annual basis (at a minimum). The
property valuations and the key valuation-sensitive assumptions are reviewed by the fund sponsor
and adjusted if there has been a significant change in circumstances related to the property
since the last valuation. Fair value measurements of investments in the hedge fund of funds
employ combinations of the market, income, and cost approach, depending upon the nature of the
underlying investments. Level 3 assets comprised approximately 9.1% and 7.0% of the Company’s
total postretirement benefit plan assets at December 31, 2010 and 2009, respectively. They are
utilized in order to provide an additional measure of diversification and are not considered a
critical part of the Company’s overall investment strategy.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As discussed in Note 9, the Company uses derivatives to mitigate the effect of raw material and
energy cost fluctuations, foreign currency fluctuations and interest rate movements. Fair value
measurements for the Company’s derivatives are classified under Level 2 because such measurements
are determined using published market prices or estimated based on observable inputs such as
interest rates, yield curves, spot and future commodity prices and spot and future exchange
rates.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Certain deferred compensation plan liabilities are funded and the assets invested in various
exchange traded mutual funds. These assets are measured using quoted prices in accessible active
markets for identical assets.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 11 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>11. Stock-based Compensation Plans</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company provides share-based compensation to certain of its employees and non-employee
directors in the form of stock options, stock appreciation rights, restricted stock units and other
share-based awards. Awards issued prior to 2009 were issued pursuant to the 1991 Key Employee Stock
Plan (the “1991 Plan”) or the 1996 Non-Employee Directors Stock Plan (the “1996 Plan”). Awards
issued after 2008 were issued pursuant to the Sonoco Products Company 2008 Long-Term Incentive Plan
(the “2008 Plan”), which became effective upon approval by the shareholders on April 16, 2008. The
maximum number of shares of common stock that may be issued under the 2008 Plan was set at
8,500,000 shares, subject to certain adjustments, which includes all awards that were granted,
forfeited or expired during 2008 under all previous plans. At December 31, 2010, a total of
4,634,268 shares remain available for future grant under the 2008 Plan. After the effective date of
the 2008 Plan, no awards may be granted under any previous plan. The Company issues new shares for
stock option and stock appreciation right exercises and stock unit conversions. Although the
Company from time to time has repurchased shares to replace its authorized shares issued under its
stock compensation plans, there is no specific schedule or policy to do so. The Company’s
stock-based awards to non-employee directors have not been material.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Accounting for Share-based Compensation</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">For stock appreciation rights granted to retiree-eligible employees, the service completion date is
assumed to be the grant date; therefore, expense associated with share-based compensation to these
employees is recognized at that time.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Total compensation cost for share-based payment arrangements was $15,804, $8,616 and $4,177, for
2010, 2009 and 2008, respectively. The related tax benefit recognized in net income was $5,936,
$3,254 and $1,550, for the same years, respectively. Share-based compensation expense is included
in “Selling, general and administrative expenses” in the Consolidated Statements of Income.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">An “excess” tax benefit is created when the tax deduction for an exercised stock option, exercised
stock appreciation right or converted stock unit exceeds the compensation cost that has been
recognized in income. The excess tax benefit is not recognized on the income statement, but rather
on the balance sheet as “Capital in excess of stated value.” The additional net excess tax benefit
realized was $4,209, $781 and $709 for 2010, 2009 and 2008, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Stock Appreciation Rights (SARs) and Stock Options</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company typically grants stock appreciation rights annually on a discretionary basis to its key
employees. Prior to 2006, options were granted at market (had an exercise price equal to the
closing market price on the date of grant), had 10-year terms and vested over one year, except for
the options granted in 2005, which vested immediately. In 2006, the Company began to grant stock
appreciation rights (SARs) instead of stock options. SARs are granted at market, vest over one
year, have seven-year terms and can be settled only in stock. Both stock options and SARs are
exercisable upon vesting. On February 10, 2010 and September 17, 2010, the Company granted to
employees 686,100 and 17,000 stock-settled SARs, net of forfeitures, respectively. All SARs were
granted at the closing market prices on the dates of grant. As of December 31, 2010, there was $238
of total unrecognized compensation cost related to nonvested SARs. This cost will be recognized
over the remaining weighted-average vesting period, which is approximately two months.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The weighted-average fair value of SARs granted was $6.30, $4.21 and $4.36 per share in 2010, 2009
and 2008, respectively. The Company computed the estimated fair values of all SARs using the
binomial option-pricing model applying the assumptions set forth in the following table:
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected dividend yield
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">3.8</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">4.6</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">3.6</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected stock price volatility
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">33.3</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">29.4</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">22.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Risk-free interest rate
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">2.4</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1.9</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">2.7</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected life of SARs
</div></td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">4 years</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">4 years</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">4 years</td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The assumptions employed in the calculation of the fair value of SARs were determined as follows:
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Expected dividend yield — the Company’s annual dividend divided by the stock price at
the time of grant.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Expected stock price volatility — based on historical volatility of the Company’s
common stock measured weekly for a time period equal to the expected life.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Risk-free interest rate — based on U.S. Treasury yields in effect at the time of grant
for maturities equal to the expected life.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Expected life — calculated using the simplified method as prescribed in U.S.
GAAP, where the expected life is equal to the sum of the vesting period and the
contractual term divided by two.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following tables summarize information about stock options and SARs outstanding and exercisable
at December 31, 2010. At December 31, 2010, the fair market value of the Company’s stock used to
calculate intrinsic value was $33.67 per share.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>Options and SARs Vested and Expected to Vest</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted-</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted-</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Range of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Number</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Remaining</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Aggregate</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Exercise Prices</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Outstanding</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Contractual Life</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Exercise Price</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Intrinsic Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">$19.95 - $24.95
</div></td>
<td> </td>
<td> </td>
<td align="right">1,660,144</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">3.5 years</td>
<td> </td>
<td align="left">$</td>
<td align="right">23.09</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17,556</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">$25.13 - $28.93
</div></td>
<td> </td>
<td> </td>
<td align="right">1,925,759</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">2.5 years</td>
<td> </td>
<td align="left">$</td>
<td align="right">27.03</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">12,789</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">$29.30 - $43.83
</div></td>
<td> </td>
<td> </td>
<td align="right">1,783,004</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">3.2 years</td>
<td> </td>
<td align="left">$</td>
<td align="right">33.58</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,741</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">$19.95 - $43.83
</div></td>
<td> </td>
<td> </td>
<td align="right">5,368,907</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">3.0 years</td>
<td> </td>
<td align="left">$</td>
<td align="right">28.01</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">33,086</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>Options and SARs Exercisable</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted-</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Range of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Number</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Remaining</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted-average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Aggregate</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Exercise Prices</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Exercisable</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Contractual Life</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Exercise Price</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Intrinsic Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">$19.95 - $24.95
</div></td>
<td> </td>
<td> </td>
<td align="right">1,660,144</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">3.5 years</td>
<td> </td>
<td align="left">$</td>
<td align="right">23.09</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17,556</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">$25.13 - $28.93
</div></td>
<td> </td>
<td> </td>
<td align="right">1,240,559</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">1.1 years</td>
<td> </td>
<td align="left">$</td>
<td align="right">26.22</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9,233</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">$29.30 - $43.83
</div></td>
<td> </td>
<td> </td>
<td align="right">1,783,004</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">3.2 years</td>
<td> </td>
<td align="left">$</td>
<td align="right">33.58</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,741</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">$19.95 - $43.83
</div></td>
<td> </td>
<td> </td>
<td align="right">4,683,707</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">2.3 years</td>
<td> </td>
<td align="left">$</td>
<td align="right">27.92</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">29,523</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The activity related to the Company’s stock options and SARs is as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted-</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>average Exercise</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Nonvested</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Vested</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Price</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding, December 31, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">857,875</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,026,782</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,884,657</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">27.07</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Vested
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(857,875</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">857,875</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">685,200</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17,900</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">703,100</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28.60</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,190,550</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,190,550</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">23.69</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Forfeited/Expired
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(28,300</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(28,300</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">29.67</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding, December 31, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">685,200</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,683,707</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,368,907</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28.01</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The aggregate intrinsic value of options and SARs exercised during the years ended December 31,
2010, 2009 and 2008 was $11,270, $2,269 and $2,264, respectively. Cash received by the Company on
option exercises was $23,155, $7,159 and $6,470 for the same years, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Performance-based Stock Awards</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company typically grants performance contingent restricted stock units (PCSUs) annually on a
discretionary basis to certain of its executives and other members of its management team. Both the
ultimate number of PCSUs awarded and the vesting period are dependent upon the degree to which
performance targets are achieved for three-year performance periods. Half of the units available to
be earned are tied to an earnings target and half are tied to a return on assets target. If the
respective performance target is met, units awarded vest at the end of the three-year performance
period. In the event performance targets are not met, a minimum number of units are awarded and
vest 50% at the end of four years and 50% at the end of five years. Upon vesting, PCSUs are
convertible into common shares on a one-for-one basis.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">For the awards granted in 2010 and 2009, the total PCSUs that could ultimately vest ranges from
339,098 to 1,017,023. The 2010 awards can range from 169,885 to 509,655 units and are tied to the
three-year period ending December 31, 2012. The 2009 awards can range from 169,213 to 507,638 units
and are tied to the three-year performance period ending December 31, 2011.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The three-year performance cycle for the 2008 awards was completed on December 31, 2010. Based on
performance, 100,455 stock units will be awarded, the minimum provided for under the award. A total
of 56,039 stock units qualified for accelerated vesting and vested on December 31, 2010 with an
intrinsic value of $1,234. Approximately half of the remaining units will vest on December 31, 2011
and the remaining amount will vest on December 31, 2012.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The three-year performance cycle for the 2007 awards was completed on December 31, 2009. Based on
performance, 96,738 stock units will be awarded, which was the minimum provided for under the
award, and did not qualify for accelerated vesting. On December 31, 2010, 48,369 of the units with
an intrinsic value of $1,660 vested. The remaining will vest on December 31, 2011.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Noncash stock-based compensation associated with PCSUs totaled $9,660, $4,001 and $741 for 2010,
2009 and 2008, respectively. As of December 31, 2010, there was approximately $12,030 of total
unrecognized compensation cost related to nonvested PCSUs. This cost is expected to be recognized
over a weighted-average period of 36 months.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Restricted Stock Awards</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Since 1994, the Company has from time to time granted awards of restricted stock units to certain
of the Company’s executives. These awards normally vest over a five-year period with one-third
vesting on each of the third, fourth and fifth anniversaries of the grant. An executive must be
actively employed by the Company on the vesting date for shares to be issued. However, in the event
of the executive’s death, disability or retirement prior to full vesting, shares will be issued on
a pro rata basis up through the time the executive’s employment ceases. Participants can elect to
defer receipt. Once vested, these awards do not expire. As of December 31, 2010, a total of 438,431
restricted stock units remained outstanding, 365,371 of which were vested. During 2010, 56,666
restricted stock units vested and 9,999 restricted stock units were granted. Noncash stock-based
compensation associated with restricted stock grants totaled $680, $746 and $558 for 2010, 2009 and
2008, respectively. As of December 31, 2010, there was $748 of total unrecognized compensation cost
related to nonvested restricted stock units. This cost is expected to be recognized over a
weighted-average period of 20 months.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The activity related to the PCSUs and restricted stock units is as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average Grant Date</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Nonvested</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Vested</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Value Per Share</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding, December 31, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">801,208</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">785,914</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,587,122</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">27.80</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">522,580</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">522,580</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25.62</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Performance adjustments
</div></td>
<td> </td>
<td> </td>
<td align="right">25,289</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25,289</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">23.07</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Vested
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(161,074</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">161,074</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Converted
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(63,701</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(63,701</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">26.64</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Dividend equivalents
</div></td>
<td> </td>
<td> </td>
<td align="right">2,644</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29,585</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32,229</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">31.69</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding, December 31, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">1,190,647</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">912,872</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,103,519</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25.69</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Deferred Compensation Plans</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Certain officers and directors of the Company may elect to defer a portion of their compensation in
the form of stock units. Units are granted as of the day the cash compensation would have otherwise
been paid using the closing price of the Company’s common stock on that day. The units immediately
vest and earn dividend equivalents. Units are distributed in the form of common stock upon
retirement over a period elected by the employee. Cash compensation totaling $988 was deferred as
stock units during 2010, resulting in 30,794 units being granted. Conversions to common stock
during 2009 totaled 916 shares.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Since 2006, non-employee directors have been required to defer a minimum of 50% of their quarterly
retainer fees into stock units. Units are granted as of the day the cash compensation would have
otherwise been paid using the closing price of the Company’s common stock on that day. The units
immediately vest and earn dividend equivalents. Distributions begin after retirement from the board
over a period elected by the director.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 12 - us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>12. Employee Benefit Plans</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Retirement Plans and Retiree Health and Life Insurance Plans</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company provides non-contributory defined benefit pension plans for a majority of its employees
in the United States, and certain of its employees in Mexico and Belgium. Effective December 31,
2003, the Company froze participation for newly hired salaried and non-union hourly U.S. employees
in its traditional defined benefit pension plan. At that time, the Company adopted a defined
contribution plan, the Sonoco Investment and Retirement Plan (SIRP), which covers its non-union
U.S. employees hired on or after January 1, 2004. The Company also sponsors contributory defined
benefit pension plans covering the majority of its employees in the United Kingdom, Canada and the
Netherlands.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On February 4, 2009, the U.S. qualified defined benefit pension plan was amended to freeze plan
benefits for all active participants effective December 31, 2018. Remaining active participants in
the U.S. qualified plan will become participants of the SIRP effective January 1, 2019. Active
participants of the U.S. qualified plan had a one-time option to transfer into the SIRP effective
January 1, 2010. Approximately one third of the active participants chose that option.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company also 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.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The components of net periodic benefit cost include the following:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left"><b> </b></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Retirement Plans</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Service cost
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">19,647</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">21,757</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">26,831</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest cost
</div></td>
<td> </td>
<td> </td>
<td align="right">71,678</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">73,221</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">74,105</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected return on plan assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(77,882</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(59,275</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(89,750</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of net transition obligation
</div></td>
<td> </td>
<td> </td>
<td align="right">445</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">353</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">504</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of prior service cost
</div></td>
<td> </td>
<td> </td>
<td align="right">139</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">956</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,549</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of net actuarial loss
</div></td>
<td> </td>
<td> </td>
<td align="right">35,736</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">41,317</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,685</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Special termination benefit cost
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">288</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of settlement loss
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">935</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,902</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of curtailment loss
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,005</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">520</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">212</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(171</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net periodic benefit cost
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">49,975</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">82,098</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">30,634</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Retiree Health and Life Insurance Plans</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Service cost
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,139</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,454</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,766</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest cost
</div></td>
<td> </td>
<td> </td>
<td align="right">2,169</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,693</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,203</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected return on plan assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,385</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,206</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,966</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of prior service credit
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,182</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,155</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,928</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of net actuarial loss
</div></td>
<td> </td>
<td> </td>
<td align="right">1,611</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,319</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,547</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net periodic benefit income
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6,648</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4,895</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4,378</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following tables set forth the Plans’ obligations and assets at December 31:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Retiree Health and</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Retirement Plans</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Life Insurance Plans</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Change in Benefit Obligation</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Benefit obligation at January 1
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,286,242</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,176,000</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">49,908</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">69,028</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Service cost
</div></td>
<td> </td>
<td> </td>
<td align="right">19,647</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21,757</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,139</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,454</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest cost
</div></td>
<td> </td>
<td> </td>
<td align="right">71,678</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">73,221</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,169</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,693</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Plan participant contributions
</div></td>
<td> </td>
<td> </td>
<td align="right">1,337</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,332</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,037</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,015</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Plan amendments
</div></td>
<td> </td>
<td> </td>
<td align="right">483</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,300</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,566</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17,625</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Actuarial loss/(gain)
</div></td>
<td> </td>
<td> </td>
<td align="right">54,994</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">74,797</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,360</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,678</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Benefits paid
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(74,940</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(66,231</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,838</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,049</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impact of foreign exchange rates
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,197</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">24,211</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">70</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of settlements
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,877</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of curtailments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(882</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,363</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">212</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(305</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Benefit obligation at December 31
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,356,574</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,286,242</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">40,517</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">49,908</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Retiree Health and</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Retirement Plans</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Life Insurance Plans</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Change in Plan Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Fair value of plan assets at January 1
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">986,908</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">768,169</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">19,355</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17,280</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Actual return on plan assets
</div></td>
<td> </td>
<td> </td>
<td align="right">119,930</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">157,760</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,389</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,783</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Company contributions
</div></td>
<td> </td>
<td> </td>
<td align="right">16,537</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">113,177</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,214</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,434</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Plan participant contributions
</div></td>
<td> </td>
<td> </td>
<td align="right">1,337</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,332</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,037</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,015</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Benefits paid
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(74,940</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(66,231</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,838</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,049</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impact of foreign exchange rates
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,074</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">19,948</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expenses paid
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,544</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,252</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(99</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(108</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of settlements
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,877</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">212</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(118</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Fair value of plan assets at
December 31
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,043,366</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">986,908</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">20,058</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">19,355</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Funded Status of the Plans</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(313,208</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(299,334</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(20,459</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(30,553</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Retiree Health and</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Retirement Plans</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Life Insurance Plans</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total Recognized Amounts in the
Consolidated Balance Sheets</b>
</div></td>
<td> </td>
<td align="left"> </td>
<td align="right"> </td>
<td> </td>
<td> </td>
<td align="left"> </td>
<td align="right"> </td>
<td> </td>
<td> </td>
<td align="left"> </td>
<td align="right"> </td>
<td> </td>
<td> </td>
<td align="left"> </td>
<td align="right"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Noncurrent assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">300</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,162</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8,904</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(920</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,438</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Noncurrent liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(302,046</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(290,730</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(19,539</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(29,115</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net liability
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(313,208</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(299,334</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(20,459</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(30,553</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Items not yet recognized as a component of net periodic pension cost that are included in
Accumulated Other Comprehensive Loss (Income) as of December 31, 2010 and 2009, are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Retiree Health and</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Retirement Plans</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Life Insurance Plans</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net actuarial loss
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">482,132</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">499,919</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">11,554</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">19,428</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Prior service cost/(credit)
</div></td>
<td> </td>
<td> </td>
<td align="right">1,134</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">790</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(18,647</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(24,263</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net transition obligation
</div></td>
<td> </td>
<td> </td>
<td align="right">1,922</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,367</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">485,188</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">503,076</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(7,093</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4,835</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The amounts recognized in Other Comprehensive Loss/(Income) during 2010 and 2009 include the
following:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Retiree Health and</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Retirement Plans</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Life Insurance Plans</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjustments arising during the period:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net actuarial loss/(gain)
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">17,949</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(32,036</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6,263</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6,155</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Prior service cost/(credit)
</div></td>
<td> </td>
<td> </td>
<td align="right">483</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,293</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,566</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17,631</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net transition asset
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Reversal of amortization:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net actuarial loss
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(35,736</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(42,252</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,611</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,319</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Prior service cost/(credit)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(139</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,961</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">10,182</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,155</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net transition obligation
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(445</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(353</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total recognized in Other
Comprehensive Loss/(Income)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(17,888</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(82,895</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2,258</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(14,950</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total recognized in Net Periodic
Benefit Cost and Other Comprehensive
Loss/(Income)
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">32,087</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(797</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(8,906</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(19,845</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The accumulated benefit obligation for all defined benefit plans was $1,298,865 and $1,222,455 at
December 31, 2010 and 2009, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The projected benefit obligation (PBO), accumulated benefit obligation (ABO) and fair value of plan
assets for pension plans with accumulated benefit obligations in excess of plan assets were,
$1,356,574, $1,298,865 and $1,043,366, respectively, as of December 31, 2010, and $1,280,291,
$1,216,504 and $980,657, respectively, as of December 31, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the Company’s projected benefit payments for the next ten years:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Retiree Health and</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Year</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Retirement Plans</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Life Insurance Plans</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2011
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">80,077</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,059</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2012
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">81,683</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,119</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2013
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">81,525</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,216</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2014
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">80,788</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,316</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2015
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">81,830</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,262</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2016-2020
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">434,682</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">18,626</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><u>Assumptions</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following tables set forth the major actuarial assumptions used in determining the PBO, ABO and
net periodic cost.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>U.S. Retiree</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>U.S.</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Health and</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i><b>Weighted-average assumptions used to</b></i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Retirement</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Life Insurance</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i><b>determine benefit obligations at December 31</b></i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Plans</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Plans</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Foreign Plans</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Discount Rate
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">5.21</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.37</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="right">4.40-6.00</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">5.74</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">5.08</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="right">5.00-6.75</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Rate of Compensation Increase
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.49</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.29</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="right">2.50-4.50</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.59</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.38</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="right">2.50-4.00</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>U.S. Retiree</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b><i>Weighted-average assumptions used to</i></b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>U.S.</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Health and</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b><i>determine net periodic benefit cost for</i></b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Retirement</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Life Insurance</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b><i>years ended December 31</i></b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Plans</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Plans</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Foreign Plans</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Discount Rate
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">5.74</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">5.08</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="right">5.00-6.75</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">6.48</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">6.19</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="right">6.00-7.50</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2008
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">6.39</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">6.11</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="right">5.50-6.25</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected Long-term Rate of Return
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">8.50</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">8.50</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="right">3.75-7.50</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">8.50</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">8.50</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="right">3.75-7.70</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2008
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">8.50</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">8.50</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="right">3.75-7.80</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Rate of Compensation Increase
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.59</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.38</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="right">2.50-4.00</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.66</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.46</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="right">2.50-4.00</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2008
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.77</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.57</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="right">2.00-4.50</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company adjusts its discount rates at the end of each fiscal year based on yield curves of
high-quality debt instruments over durations that match the expected benefit payouts of each plan.
The expected long-term rate of return assumption is based on the Company’s current and expected
future portfolio mix by asset class, and expected nominal returns of these asset classes using an
economic “building block” approach. Expectations for inflation and real interest rates are
developed and various risk premiums are assigned to each asset class based primarily on historical
performance. The expected long-term rate of return also gives consideration to the expected level
of outperformance to be achieved on that portion of the Company’s investment portfolio under active
management. The assumed rate of compensation increase reflects historical experience and
management’s expectations regarding future salary and incentive increases.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><u>Medical Trends</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The U.S. Retiree Health and Life Insurance Plan makes up approximately 99% of the Retiree Health
liability. Therefore, the following information relates to the U.S. plan only.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Healthcare Cost Trend Rate</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Pre-age 65</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Post-age 65</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">8.00</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">8.00</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">8.30</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">9.30</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Ultimate Trend Rate</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Pre-age 65</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Post-age 65</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">5.5</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">5.5</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">5.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">6.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Year at which the Rate Reaches</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>the Ultimate Trend Rate</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Pre-age 65</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Post-age 65</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> 
</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td> </td>
<td align="right">2016</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2016</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">2014</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2014</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Increasing the assumed trend rate for healthcare costs by one percentage point would increase the
accumulated postretirement benefit obligation (the APBO) and total service and interest cost
component approximately $498 and $59, respectively. Decreasing the assumed trend rate for
healthcare costs by one percentage point would decrease the APBO and total service and interest
cost component approximately $453 and $53, respectively. Based on amendments to the U.S. plan
approved in 1999, which became effective in 2003, cost increases borne by the Company are limited
to the Urban CPI, as defined.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><u>Retirement Plan Assets</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the weighted-average asset allocations of the Company’s retirement
plans at December 31, 2010 and 2009, by asset category.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i><b>Asset Category</b></i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>U.S.</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>U.K.</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Canada</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity securities
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">57.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">73.9</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">60.2</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">46.1</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">76.6</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">71.2</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Debt securities
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">
2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">31.4</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">22.6</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">38.2</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">35.4</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">19.9</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">25.6</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Alternative
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">11.6</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">2.6</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">8.5</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">2.7</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and short-term investments
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">
2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.00</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.9</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">1.6</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">10.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.8</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">3.2</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">
2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">100.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">100.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">100.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">100.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">100.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">100.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company employs a total-return investment approach whereby a mix of equities and fixed income
investments are used to maximize the long-term return of plan assets for a desired level of risk.
Alternative assets such as real estate, private equity and hedge funds are used to enhance expected
long-term returns while improving portfolio diversification. Risk tolerance is established through
consideration of plan liabilities, plan funded status and corporate financial condition. Investment
risk is measured and
monitored on an ongoing basis through periodic investment portfolio reviews and periodic
asset/liability studies.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">At December 31, 2010, total postretirement benefit plan assets were $1,063,424, of which $807,300
were assets of the U.S. Defined Benefit Plan.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><u>U.S. Defined Benefit Plan</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The equity investments are diversified among U.S. and non-U.S. stocks of small to large
capitalizations. During 2008, the Company completed an asset/liability study for the U.S. Defined
Benefit Plan. As a result, the investment mix of the Plan was altered to include a larger
percentage allocation to longer duration domestic bonds as well as an increased allocation to
international equity securities and alternative investments. The level of domestic equity
securities was decreased to accommodate these changes. The current target allocation (midpoint) for
the investment portfolio is: Equity Securities — 52.5%, Debt Securities — 34.5% Alternative —
13% and Cash — 0%. The large cash position at the end of 2009 was due to the timing of the
Company’s $100,000 contribution in December 2009. At December 31, 2009, approximately $75,000 of
cash and short-term investments were held by the Plan as the contribution was not fully invested in
the targeted portfolio allocation until January 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><u>United Kingdom Defined Benefit Plan</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The equity investments are diversified among U.K. and international stocks of small and large
capitalizations. The current target allocation (midpoint) for the investment portfolio is: Equity
Securities — 72%, Debt Securities — 22%, Alternative — 5% and Cash — 1%.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><u>Canada Defined Benefit Plan</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The equity investments are diversified among Canadian and international stocks of primarily large
capitalizations and short to intermediate duration corporate and government bonds. The current
target allocation (midpoint) for the investment portfolio is: Equity Securities — 60%, Debt
Securities — 40%, Alternative — 0% and Cash — 0%.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><u>Retiree Health and Life Insurance Plan Assets</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the weighted-average asset allocations of the Company’s U.S. retiree
health and life insurance plan at December 31, 2010 and 2009, by asset category. As mentioned
previously, the U.S. Retiree Health and Life Insurance Plan comprises approximately 99% of the
Retiree Health liability. Therefore, the following information relates to the U.S. Plan only.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i><b>Asset Category</b></i></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity securities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">
2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">50.7</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">54.3</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Debt securities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">
2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">41.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">37.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Alternative
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">
2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">7.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">5.3</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">
2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">3.4</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"> </td>
<td nowrap="nowrap"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">
2010
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">100.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">100.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><u>Contributions</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Based on current actuarial estimates, the Company anticipates that the total contributions to its
retirement plans and retiree health and life insurance plans will be approximately $109,000 in
2011, including an $85,000 contribution made to its U.S. qualified defined benefit pension plan
in January 2011. No assurances can be made, however, about funding requirements beyond 2011, as
they will depend largely on actual investment returns and future actuarial assumptions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><u>Plan Changes and Amendments</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In December 2010, the Company’s Board of Directors approved an amendment to the U.S. qualified
defined benefit pension plan that resulted in the plan being split into two separate plans
effective January 1, 2011. The result of the split is the creation of a plan that includes only
active participants (the “Active Plan”) and another larger plan that includes only inactive
participants (the “Inactive Plan”). The projected benefit obligation of the U.S. qualified defined
benefit pension at December 31, 2010, is presented prior to the split. The combined projected
benefit obligation of the separate plans at January 1, 2011, is approximately $250 higher.
Actuarial losses associated with the Active Plan will continue to be amortized over the average
remaining service life of the active participants (approximately 10 years) while the actuarial
losses associated with the Inactive Plan will be amortized over the remaining life expectancy of
the inactive participants (approximately 22 years). The longer amortization period is expected to
lower overall benefit plan expense by approximately $13 million in 2011. This benefit will be
partially offset by lower assumed rates of return. With the split into two plans, the Company
expects to employ a somewhat more conservative asset allocation strategy for the Inactive Plan.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During 2010, certain retiree medical benefits and life insurance coverage under the Company’s U.S.
Retiree Medical and Life Insurance Plan were changed, reducing the accumulated postretirement
benefit obligation by $4,566. The resulting prior service credit will be amortized over a period of
approximately four years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During 2009, the Company’s U.S. qualified defined benefit pension plan was amended to allow a lump
sum payment option upon termination to plan participants who chose to freeze their benefit December
31, 2009 and move to the SIRP. The effect of this and other smaller amendments was a reduction in
the projected benefit obligation of $4,300. Also during 2009, the Company amended its U.S. Retiree
Medical and Life Insurance Plan to freeze the Company subsidy for both pre- and post-Medicare
retiree medical coverage at 2009 levels effective January 1, 2010 and to eliminate any early
retirement reduction factor applied to the Company subsidy for pre-Medicare coverage for current
retirees as of December 31, 2009. In addition, the Company will no longer provide post-Medicare
retiree medical coverage to its active employees or post-1981 retirees, except for certain union
groups. The impact of these changes was an overall reduction in the accumulated postretirement
benefit obligation of $17,625, which will be amortized over a period of 3.3 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During 2005, the Company announced changes in eligibility for retiree medical benefits effective
January 1, 2006, for its U.S. plan. These changes included the elimination of a Company subsidy
toward the costs of retiree benefits if certain age and service criteria were not met, as well as
the elimination of Company-provided prescription drug benefits for Medicare-eligible retirees for
those employees who retired after 1981 and for all future retirees. These changes resulted in an
overall reduction in the accumulated postretirement benefit obligation of $38,132 in 2005, which
was amortized over a period of 4.6 years. The benefit from the amortization of these prior service
credits ceased during 2010.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Of the amounts included in Accumulated Other Comprehensive Loss (Income) as of December 31, 2010,
the portions the Company expects to recognize as components of net periodic benefit cost in 2011
are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Retirement</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Retiree Health and Life</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Plans</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Insurance Plans</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net actuarial loss
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">23,168</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,382</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Prior service cost/(credit)
</div></td>
<td> </td>
<td> </td>
<td align="right">140</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7,819</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net transition obligation
</div></td>
<td> </td>
<td> </td>
<td align="right">459</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">23,767</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6,437</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Sonoco Savings Plan</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Sonoco Savings Plan is a defined contribution retirement plan provided for the Company’s U.S.
employees. In accordance with the Internal Revenue Service’s “Safe Harbor” matching contributions
and vesting provisions, the plan had provided 100% Company matching on the first 3% of pretax
contributions, 50% Company matching on the next 2% of pretax contributions and 100% immediate
vesting. The plan also provides for participant contributions of 1% to 30% of gross pay. The
Company’s matching contribution to the Sonoco Savings Plan was temporarily suspended effective June
1, 2009. A modified matching contribution was subsequently reinstated by the Company effective
January 1, 2010. Under the modified matching arrangement, the Company will match 50% on the first
4% of a participant’s pretax contributions. The Company’s expenses related to the plan for 2010,
2009 and 2008 were approximately $7,950, $7,400 and $15,600, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Sonoco Investment and Retirement Plan</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Sonoco Investment and Retirement Plan is a defined contribution pension plan provided for the
Company’s salaried and non-union U.S. employees who were hired on or after January 1, 2004. The
Company makes an annual contribution of 4% of all eligible pay plus 4% of eligible pay in excess of
the Social Security wage base to eligible participant accounts. Participants are fully vested after
five years of service or upon reaching age 55, if earlier. The Company’s expenses related to the
plan for 2010, 2009 and 2008 were approximately $9,300, $4,250 and $4,550, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Other Plans</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company also provides retirement and post-retirement benefits to certain other non-U.S.
employees through various Company and local government sponsored defined contribution arrangements.
For the most part, the liabilities related to these arrangements are funded in the period they
arise. The Company’s expenses for these plans were not material for all years presented.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 13 - us-gaap:IncomeTaxDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>13. Income Taxes</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The provision for taxes on income for the years ended December 31 consists of the following:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Pretax income
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Domestic
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">183,447</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">136,029</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">150,348</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign
</div></td>
<td> </td>
<td> </td>
<td align="right">71,007</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">78,192</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">52,028</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total pretax income
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">254,454</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">214,221</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">202,376</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Federal
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">26,560</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">24,656</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">44,431</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">State
</div></td>
<td> </td>
<td> </td>
<td align="right">2,714</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,277</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,245</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign
</div></td>
<td> </td>
<td> </td>
<td align="right">22,713</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17,196</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21,965</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total current
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">51,987</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">45,129</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">73,641</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Federal
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">23,744</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">16,663</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(3,781</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">State
</div></td>
<td> </td>
<td> </td>
<td align="right">1,187</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,855</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,437</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,433</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">3,171</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,626</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total deferred
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">12,498</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">21,689</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(18,844</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total taxes
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">64,485</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">66,818</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">54,797</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Deferred tax liabilities/(assets) are comprised of the following at December 31:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">93,321</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">103,244</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,082</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Intangibles
</div></td>
<td> </td>
<td> </td>
<td align="right">83,179</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">77,583</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Gross deferred tax liabilities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">176,500</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">185,909</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Retiree health benefits
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(11,869</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(17,623</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign loss carryforwards
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(86,628</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(72,487</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Capital loss carryforwards
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,418</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(22,961</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Employee benefits
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(121,731</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(137,920</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued liabilities and other
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(62,104</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(63,520</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Gross deferred tax assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(293,750</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(314,511</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Valuation allowance on deferred tax assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">76,860</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">76,540</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total deferred taxes, net
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(40,390</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(52,062</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> 
D</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Foreign subsidiary loss carryforwards of approximately $342,900 remain at December 31, 2010. Their
use is limited to future taxable earnings of the respective foreign subsidiaries. Approximately
$222,400 of these loss carryforwards do not have an expiration date. The remaining loss
carryforwards expire at various dates in the future. Approximately $8,150 of state loss
carryforwards and $4,600 of state credit carryforwards remain at December 31, 2010. The state loss
and credit carryforwards expire at various dates in the future.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">A reconciliation of the U.S. federal statutory tax rate to the actual consolidated tax expense is
as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="34%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Statutory tax rate
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">89,059</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">35.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td align="left">$</td>
<td align="right">74,977</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">35.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td align="left">$</td>
<td align="right">70,832</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">35.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">State income taxes, net of
federal tax benefit
</div></td>
<td> </td>
<td> </td>
<td align="right">4,308</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,589</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,405</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Valuation allowance
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,788</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2.3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,526</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,351</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Tax examinations
including change in
reserve for uncertain tax
positions
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,878</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1.1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">331</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.2</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,332</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1.2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Change in estimates
related to prior years
</div></td>
<td> </td>
<td> </td>
<td align="right">1,274</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.5</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(931</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,460</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2.2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign
earnings taxed at other than U.S. rates
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17,153</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6.8</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,808</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2.7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(13,252</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6.5</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of
tax rate changes enacted during
the year
</div></td>
<td> </td>
<td> </td>
<td align="right">645</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.3</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,219</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(616</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.3</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other, net
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,982</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2.0</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,647</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1.7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,131</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1.5</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total taxes
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">64,485</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">25.3</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td align="left">$</td>
<td align="right">66,818</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">31.2</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td align="left">$</td>
<td align="right">54,797</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">27.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The change in “Tax examinations including change in reserve for uncertain tax positions” is shown
net of associated deferred taxes and accrued interest. Included in the change are net increases of
$5,168, $4,645 and $7,166 for uncertain items arising in 2010, 2009 and 2008, respectively. Also
included are adjustments related to prior year items, primarily decreases related to lapses of
statutes of limitations in international, federal and state jurisdictions as well as overall
changes in facts and judgment. These adjustments decreased the reserve by a total of $13,296,
$4,314 and $9,498 in 2010, 2009 and 2008, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In many of the countries in which the Company operates, earnings are taxed at rates lower than in
the U.S. This benefit is reflected in “Foreign earnings taxed at other than U.S. rates” along with
other items, if any, that impacted taxes on foreign earnings in the periods presented. Included in
2009 is a $5,287 charge related to an unfavorable change in Mexican tax law. This change had
retrospective effect back to 1999, and eliminated the benefits of filing consolidated returns in
those periods. In 2010, there was a regulatory clarification of the 2009 law change, which resulted
in recognition of a benefit of $5,474, offsetting the prior negative impact. Included in 2008 is an
additional benefit of $4,313 from an adjustment to the basis of acquired assets of one of the
Company’s Italian operations due to a change in local tax law.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The benefits included in “Change in estimates related to prior years” for each of the years
presented consist primarily of adjustments to deferred tax assets and liabilities arising from the
availability of more accurate estimates.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Undistributed earnings of international subsidiaries totaled $376,264 at December 31, 2010.
Deferred taxes have not been provided on the undistributed earnings, as the Company considers these
amounts to be indefinitely reinvested to finance international growth and expansion. If such
amounts were remitted, loaned to the Company, or the stock in the foreign subsidiaries sold, these
earnings could become subject to tax.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Reserve for Uncertain Tax Positions</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the reconciliation of the gross amounts of unrecognized tax benefits
at the beginning and ending of the periods indicated:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Gross Unrecognized Tax Benefits at January 1
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">45,600</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">34,800</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">36,700</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Increases in prior years’ unrecognized tax benefits
</div></td>
<td> </td>
<td> </td>
<td align="right">4,700</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,300</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,600</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Decreases in prior years’ unrecognized tax benefits
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(16,600</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,700</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,000</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Increases in current year unrecognized tax benefits
</div></td>
<td> </td>
<td> </td>
<td align="right">5,800</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,200</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,000</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Decreases in unrecognized tax benefits from the
lapse of statutes of limitations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7,000</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,300</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,400</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Settlements
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,400</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,700</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,100</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Gross Unrecognized Tax Benefits at December 31
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">28,100</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">45,600</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">34,800</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Of the unrecognized tax benefit balances at December 31, 2010 and December 31, 2009, approximately
$19,300 and $28,400, respectively, would have an impact on the effective tax rate if ultimately
recognized.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Interest and/or penalties related to income taxes are reported as part of income tax expense. The
Company had approximately $3,800 and $6,500 accrued for interest at December 31, 2010 and December
31, 2009, respectively. Tax expense for the year ended December 31, 2010 includes $1,800 of
interest benefit, which is comprised of an interest benefit of approximately $5,300 related to the
expiration of statutes of limitations and other releases and interest expense of $3,500 on
unrecognized tax benefits. The amounts listed above for accrued interest and interest expense do
not reflect the benefit of a federal tax deduction which would be available if the interest were
ultimately paid.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company and/or its subsidiaries file federal, state and local income tax returns in the United
States and various foreign jurisdictions. With few exceptions, the Company is no longer subject to
U.S. federal, or non-U.S., income tax examinations by tax authorities for years before 2007. With
respect to state and local income taxes, the Company is no longer subject to examination prior to
2005, with few exceptions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The estimate for the potential outcome of any uncertain tax issue is highly judgmental. The Company
believes it has adequately provided for any reasonable foreseeable outcome related to these
matters. However, future results may include favorable or unfavorable adjustments to estimated tax
liabilities in the period the assessments are made or resolved or when statutes of limitation on
potential assessments expire. Additionally, the jurisdictions in which earnings or deductions are
realized may differ from current estimates. As a result, the effective tax rate may fluctuate
significantly on a quarterly basis.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 14 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>14. Commitments and Contingencies</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Contingencies</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company is a party to various legal proceedings incidental to its business and is subject to a
variety of environmental and pollution control laws and regulations in all jurisdictions in which
it operates. The Company is also currently a defendant in a class action by persons who bought
Company stock between February 7, 2007 and September 18, 2007. The complaint, as amended, alleges
that the Company issued press releases and made public statements during the class period that were
materially false and misleading. The complaint seeks an unspecified amount of damages plus interest
and attorneys’ fees. As is the case with other companies in similar industries, the Company faces
exposure from actual or potential claims and legal proceedings. Some of these exposures have the
potential to be material. The Company cannot currently estimate the final outcome of many of the
items described or the ultimate amount of potential losses.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">While the ultimate liabilities relating to claims and proceedings may be significant to
profitability in the period recognized, it is management’s opinion that such liabilities, when
finally determined, will not have an adverse material effect on Sonoco’s consolidated financial
position or liquidity.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Environmental Matters</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the fourth quarter of 2005, the U. S. Environmental Protection Agency (EPA) notified U.S.
Paper Mills Corp. (U.S. Mills), a wholly owned subsidiary of the Company, that U.S. Mills and NCR
Corporation (NCR), an unrelated party, would be jointly held responsible to undertake a program to
remove and dispose of certain PCB-contaminated sediments at a particular site on the lower Fox
River in Wisconsin (the “Site”) which is now labeled by the EPA as Phase 1. U.S. Mills and NCR
reached an agreement between themselves that each would fund 50% of the costs of remediation, which
through December 31, 2010 have totaled approximately $28,900. The Company has expensed a total of
$17,650 ($12,500 in 2005 and $5,150 in 2007) for its share of the total estimated cleanup cost.
Through December 31, 2010, a total of $14,467 has been spent on remediation of the Site. The
remaining accrual of $3,183 represents the Company’s best estimate of what it is likely to pay to
complete the Site project. However, the actual costs associated with cleanup of this particular
site are dependent upon many factors and it is reasonably possible that remediation costs could be
higher than the current estimate of project costs. The Company acquired U.S. Mills in 2001, and the
alleged contamination predates the acquisition.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In February 2007, the EPA and Wisconsin Department of Natural Resources (WDNR) issued a general
notice of potential liability under the Comprehensive Environmental Response, Compensation, and
Liability Act (CERCLA) and a request to participate in remedial action implementation negotiations
relating to a stretch of the lower Fox River, including the bay at Green Bay (Operating Units 2 —
5), to eight potentially responsible parties, including U.S. Mills. Operating Units 2 — 5 include,
but also comprise, a vastly larger area than the Site. Although it has not accepted any liability,
U.S. Mills is reviewing this information and discussing possible remediation scenarios, and the
allocation of responsibility therefor, with other potentially responsible parties. On April 9,
2007, U.S. Mills, in conjunction with other potentially responsible parties, presented to the EPA
and the WDNR a proposed schedule to mediate the allocation issues among eight potentially
responsible parties, including U.S. Mills. Non-binding mediation began in May 2007 and continued as
bilateral/multilateral negotiations, although no agreement among the parties occurred.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On November 13, 2007, the EPA issued a unilateral Administrative Order for Remedial Action pursuant
to Section 106 of CERCLA. The order requires U.S. Mills and the seven other respondents jointly to
take various actions to clean up Operating Units 2 — 5. The order establishes two phases of work.
The first phase consists of planning and design work as well as preparation for dredging and other
remediation work and initially was required to be completed by December 31, 2008. The second phase
consists primarily of dredging and disposing of contaminated sediments and capping of the dredged
and less contaminated areas of the river bottom. The second phase was required to begin in 2009 and
is expected to continue for several years. The order also provides for a $32.5 per day penalty for
failure by a respondent to comply with its terms as well as exposing a non-complying respondent to
potential treble damages. Although U.S. Mills has reserved its rights to contest liability for any
portion of the work, it is cooperating with the other respondents to comply with the first phase of
the order. However, its financial contribution will likely be determined by the lawsuit commenced
in June 2008.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On June 12, 2008, NCR and Appleton Papers, Inc. (API), as plaintiffs, commenced suit in the
United States District Court for the Eastern District of Wisconsin (No. 08-CV-0016-WCG) against
U.S. Mills, as one of a number of defendants, seeking a declaratory judgment allocating among all
the parties the costs and damages associated with the pollution and cleanup of the Lower Fox River.
The suit also seeks damages from the defendants for amounts already spent by the plaintiffs,
including natural resource damages, and future amounts to be spent by all parties with regard to
the pollution and cleanup of the Lower Fox River. On December 16, 2009, the court issued an order
which concluded that, under the equities of the case, NCR and API were not entitled to any
contribution from U.S. Mills and other defendants, thereby granting the defendants’ motions for
summary judgment and denying the plaintiffs’ motions for summary judgment. Although an order has
been issued by the court, no appealable final judgment has been entered yet; nevertheless, NCR has
reported that it intends to appeal the ruling, presumably after entry of the final judgment.
Subsequent to the December 2009 ruling, U.S. Mills and other defendants made motions to have the
court rule that, on the same basis as the December 2009 ruling, NCR would be responsible for any
costs that U.S. Mills and the other defendants might incur, past, present and future. These motions
are under advisement by the court. The Company believes that this suit will have a minimal, if any,
impact on the total amount of the potential remediation costs associated with Operating Units 2 —
5, but it may have a substantial impact on U.S. Mills’ share of those costs. U.S. Mills plans to
defend the suit vigorously.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On October 14, 2010, the EPA and WDNR filed suit against NCR, API, U.S. Mills and nine other
defendants in the United States District Court for the Eastern District of Wisconsin (No.
10-CV-00910-WCG) pursuant to Sections 106 and 107 of CERCLA. The plaintiffs seek to recover
unreimbursed costs incurred for activities undertaken in response to the release and threatened
release of hazardous substances from facilities at or near the Lower Fox River and Green Bay as
well as damages for injury to, loss of, and destruction of natural resources resulting from such
releases. The plaintiffs also seek a ruling that the defendants are liable for future response
costs of the plaintiffs and requiring the defendants to comply with the unilateral Administrative
Order for Remedial Action discussed in prior filings. The Company does not believe that the
remedies sought in the suit materially expand the Company’s potential liability beyond what has
been disclosed in this report or in the Company’s prior filings with the SEC. U.S. Mills plans to
defend the suit vigorously.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As of December 31, 2010, U.S. Mills had accrued a total of $55,544 for potential liabilities
associated with the Fox River contamination (not including amounts accrued for remediation at the
Site). That amount represents the minimum of the range of probable loss that can be reasonably
estimated based on
information available through the date of this report. In two separate actions during 2008, U.S.
Mills increased its reserve for all Fox River related liabilities (other than the Site) from
$20,000 to $60,825. Accordingly, U.S. Mills recognized additional pretax charges of $40,825 in
2008 for such potential liabilities. Also during 2008, settlements totaling $40,825 were reached on
certain of the insurance
policies covering the Fox River contamination. The recognition of these
insurance
settlements offset the impact to earnings of the additional charges in 2008. Through
December 31, 2010, a total of $5,281, primarily legal fees, has been spent against this reserve.
Although the Company lacks a reasonable basis for identifying any amount within the range of
possible loss as a better estimate than any other amount, as has been previously disclosed, the
upper end of the range may exceed the net worth of U.S. Mills. However, because the discharges of
hazardous materials into the environment occurred before the Company acquired U.S. Mills, and U.S.
Mills has been operated as a separate subsidiary of the Company, the Company does not believe that
it bears financial responsibility for these legacy environmental liabilities of U.S. Mills.
Therefore, the Company continues to believe that the maximum additional exposure to its
consolidated financial position is limited to the equity position of U.S. Mills, which was
approximately $85,000 at December 31, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company has been named as a potentially responsible party at several other environmentally
contaminated sites. All of the sites are also the responsibility of other parties. The potential
remediation liabilities are shared with such other parties, and, in most cases, the Company’s
share, if any, cannot be reasonably estimated at the current time.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As of December 31, 2010 and 2009, the Company (and its subsidiaries) had accrued $62,026 and
$63,800, respectively, related to environmental contingencies. Of these, a total of $58,727 and
$60,414 relate to U.S. Mills at December 31, 2010 and 2009, respectively. These accruals are
included in “Accrued expenses and other” on the Company’s Consolidated Balance Sheets. As discussed
above, U.S. Mills also recognized a $40,825 benefit from cash settlements reached on certain
insurance policies covering the Fox River contamination in 2008. U.S. Mills’ two remaining
insurance carriers are in liquidation. It is possible that U.S. Mills may recover from these
carriers a small portion of the costs it ultimately incurs. U.S. Mills may also be able to recoup
some of the costs it incurs from other parties. There can be no assurance that such claims for
recovery would be successful and no amounts have been recognized in the consolidated financial
statements of the Company for such potential recovery or recoupment.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Commitments</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As of December 31, 2010, the Company had long-term obligations to purchase electricity and steam,
which it uses in its production processes, as well as long-term purchase commitments for certain
raw materials, principally old corrugated containers. These purchase commitments require the
Company to make total payments of approximately $386,800, as follows: $63,800 in 2011; $62,600 in
2012; $62,600 in 2013, $58,400 in 2014 and a total of $139,400 from 2015 through 2020.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 15 - us-gaap:EarningsPerShareTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>15. Shareholders’ Equity and Earnings per Share</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Stock Repurchases</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s Board of Directors has authorized the repurchase of up to 5,000,000 shares of
the Company’s common stock. On December 3, 2010 the Company announced it would immediately begin
repurchasing 2,000,000 shares of the 5,000,000 authorized. During 2010, a total of 695,036 shares
were repurchased under this program at a cost of $23,219. Accordingly, at December 31, 2010, a
total of 4,304,964 shares remain available for repurchase.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">
The Company occasionally repurchases shares of its common stock to satisfy employee tax withholding
obligations in association with the exercise of stock appreciation rights and performance-based
stock awards. These repurchases, which are not part of a publicly announced plan or program,
totaled 43,084 shares during 2010 at a cost of $1,439.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Earnings per Share</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the computation of basic and diluted earnings per share:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Numerator:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income attributable to Sonoco
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">201,053</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">151,482</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">164,608</td>
<td> </td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Denominator:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted average common shares outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">101,599,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100,780,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100,321,000</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Dilutive effect of stock-based compensation
</div></td>
<td> </td>
<td> </td>
<td align="right">944,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">249,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">665,000</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Diluted outstanding shares
</div></td>
<td> </td>
<td> </td>
<td align="right">102,543,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">101,029,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100,986,000</td>
<td> </td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Per common share:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income attributable to Sonoco:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:60px; text-indent:-15px">Basic
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1.98</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.50</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.64</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Diluted
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1.96</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.50</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.63</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company declared dividends totaling $1.11 and $1.08 per share in 2010 and 2009, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Certain stock appreciation rights and options to purchase shares of the Company’s common stock are
not dilutive because the exercise price is greater than the market price of the stock at the end of
the fiscal year or they have not fully vested. Accordingly, the following shares were not included
in the computations of diluted income per share amounts:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Anti-dilutive options/SARs
</div></td>
<td> </td>
<td> </td>
<td align="right">1,294,075</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,734,616</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,685,058</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">These options/SARs may become dilutive in future periods if the market price of the Company’s
common stock appreciates. No adjustments were made to reported net income in the computation of
earnings per share.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 16 - us-gaap:SegmentReportingDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>16. Financial Reporting for Business Segments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Consumer Packaging segment includes the following products and services: round and shaped rigid
containers and trays (both composite and plastic); printed flexible packaging; metal and peelable
membrane ends and closures; and global brand artwork management.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Tubes and Cores/Paper segment includes the following products: high-performance paper and
composite paperboard tubes and cores; fiber-based construction tubes and forms; recycled
paperboard, linerboard, corrugating medium, recovered paper and other recycled materials.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Packaging Services segment provides the following products and services: designing,
manufacturing, assembling, packing and distributing temporary, semipermanent and permanent
point-of-purchase
displays; and supply chain management services, including contract packing, fulfillment and
scalable service centers.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">All Other Sonoco represents the Company’s businesses that do not meet the aggregation criteria for
inclusion as a separate reportable segment under U.S. GAAP. All Other Sonoco includes the following
products: wooden, metal and composite wire and cable reels; molded and extruded plastics;
custom-designed protective packaging; and paper amenities such as coasters and glass covers.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Restructuring, asset impairment and environmental remediation charges, interest expense, interest
income, acquisition-related costs and debt tender charges are included in income before income
taxes under “Corporate & Environmental.”
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth financial information about each of the Company’s business segments:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Years ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Consumer</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Tubes and Cores/</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Packaging</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>All Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Corporate</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>December 31</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Packaging</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Paper</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Services</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Sonoco</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>& Environmental</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td colspan="5" align="left"><b>Total Revenue</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,670,974</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,735,292</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">470,239</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">385,905</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,262,410</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">1,552,428</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,418,183</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">427,705</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">319,440</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,717,756</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2008
</div></td>
<td> </td>
<td> </td>
<td align="right">1,588,251</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,774,821</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">502,556</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">402,469</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,268,097</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="9" align="left"><b>Intersegment Sales</b><sup style="font-size: 85%; vertical-align: text-top"><b>1</b></sup></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,475</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">90,296</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,099</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">44,419</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">138,289</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">1,827</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">79,049</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,167</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38,382</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">120,425</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2008
</div></td>
<td> </td>
<td> </td>
<td align="right">1,789</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100,185</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,190</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">42,548</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">145,712</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="9" align="left"><b>Sales to Unaffiliated Customers</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,668,499</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,644,996</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">469,140</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">341,486</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,124,121</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">1,550,601</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,339,134</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">426,538</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">281,058</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,597,331</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2008
</div></td>
<td> </td>
<td> </td>
<td align="right">1,586,462</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,674,636</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">501,366</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">359,921</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,122,385</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="9" align="left"><b>Income Before Income Taxes</b><sup style="font-size: 85%; vertical-align: text-top"><b>2</b></sup></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">179,827</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">130,185</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">12,487</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">41,586</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(109,631</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">254,454</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">169,932</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">72,248</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,008</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,399</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(65,366</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">214,221</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2008
</div></td>
<td> </td>
<td> </td>
<td align="right">130,944</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">145,840</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28,471</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">44,379</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(147,258</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">202,376</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="9" align="left"><b>Identifiable Assets</b><sup style="font-size: 85%; vertical-align: text-top"><b>3</b></sup></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,233,909</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,380,325</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">312,914</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">200,801</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">153,065</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,281,014</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">1,070,323</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,347,772</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">302,496</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">177,510</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">164,479</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,062,580</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2008
</div></td>
<td> </td>
<td> </td>
<td align="right">1,076,604</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,286,477</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">300,586</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">180,873</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">241,926</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,086,466</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="9" align="left"><b>Depreciation, Depletion and Amortization</b><sup style="font-size: 85%; vertical-align: text-top"><b>4</b></sup></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">72,517</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">79,610</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8,633</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8,905</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">169,665</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">69,483</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">85,520</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,872</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,712</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">173,587</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2008
</div></td>
<td> </td>
<td> </td>
<td align="right">73,679</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">87,654</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,016</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,685</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">183,034</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="9" align="left"><b>Capital Expenditures</b><sup style="font-size: 85%; vertical-align: text-top"><b>4</b></sup></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">62,448</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">64,999</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8,628</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9,835</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">145,910</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">35,225</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56,959</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,235</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,731</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">104,150</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2008
</div></td>
<td> </td>
<td> </td>
<td align="right">41,841</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">70,510</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,631</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,132</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">123,114</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">1</sup></td>
<td> </td>
<td>Intersegment sales are recorded at a market-related transfer price.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">2</sup></td>
<td> </td>
<td>Included in Corporate & Environmental are restructuring, asset impairment,
acquisition-related costs and environmental charges associated with the following segments:</td>
</tr>
</table>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Consumer</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Tubes and</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Packaging</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">All Other</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Corporate &</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Packaging</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Cores/Paper</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Services</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Sonoco</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Environmental</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Total</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">16,197</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,098</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,969</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,323</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">321</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25,908</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">3,767</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,857</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,270</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,081</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">826</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,801</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2008
</div></td>
<td> </td>
<td> </td>
<td align="right">21,695</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32,669</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,058</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">988</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">42,651</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100,061</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"> </td>
<td> </td>
<td>The remaining amounts reported as Corporate & Environmental consist of interest
expense, interest income and debt tender charges.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">3</sup></td>
<td> </td>
<td>Identifiable assets are those assets used by each segment in its operations. Corporate
assets consist primarily of cash and cash equivalents, investments in affiliates, headquarters
facilities and prepaid expenses.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">4</sup></td>
<td> </td>
<td>Depreciation, depletion and amortization, as well as capital expenditures that are
incurred at Corporate, are allocated to the reportable segments and All Other Sonoco.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Geographic Regions</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Sales to unaffiliated customers and long-lived assets by geographic region are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Sales to Unaffiliated Customers</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">United States
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,659,844</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,315,075</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,596,641</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Europe
</div></td>
<td> </td>
<td> </td>
<td align="right">693,719</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">616,744</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">762,143</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Canada
</div></td>
<td> </td>
<td> </td>
<td align="right">328,849</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">315,880</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">374,122</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">All other
</div></td>
<td> </td>
<td> </td>
<td align="right">441,709</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">349,632</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">389,479</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,124,121</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,597,331</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,122,385</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Long-lived Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">United States
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,349,561</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,285,838</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,314,106</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Europe
</div></td>
<td> </td>
<td> </td>
<td align="right">289,418</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">308,012</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">320,271</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Canada
</div></td>
<td> </td>
<td> </td>
<td align="right">262,903</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">246,835</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">228,630</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">All other
</div></td>
<td> </td>
<td> </td>
<td align="right">119,690</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">114,658</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">103,814</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,021,572</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,955,343</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,966,821</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Sales are attributed to countries/regions based upon the plant location from which products are
shipped. Long-lived assets are comprised of property, plant and equipment, goodwill, intangible
assets and investment in affiliates (see Notes 6 and 7).
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 17 - us-gaap:ComprehensiveIncomeNoteTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>17. Accumulated Other Comprehensive Loss</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes the components of accumulated other comprehensive loss and the
changes in accumulated other comprehensive loss, net of tax as applicable, for the years ended
December 31, 2010 and 2009:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Foreign Currency</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Defined</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Derivative</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Accumulated</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Translation</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Benefit</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Financial</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Adjustments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Plans</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Instruments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Comprehensive Loss</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at December
31, 2008
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(68,737</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(372,807</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(13,135</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(454,679</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Change during 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">79,535</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56,149</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,526</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">144,210</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at December
31, 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">10,798</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(316,658</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4,609</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(310,469</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Change during 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">6,887</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,621</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,906</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">17,602</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at December
31, 2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">17,685</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(303,037</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(7,515</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(292,867</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The cumulative tax benefit on Derivative Financial Instruments was $4,406 and $2,720 at December
31, 2010 and 2009, respectively. The tax benefit on Derivative Financial Instruments increased
by $1,686 during the year ended December 31, 2010, and decreased by $(4,960) during the year
ended December 31, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The cumulative tax benefit on Defined Benefit Plans was $179,628 and $186,001 at December 31, 2010
and 2009, respectively. The tax benefit on Defined Benefit Plans decreased by $(6,373) during the
year ended December 31, 2010, and decreased by $(39,257) during the year ended December 31, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The change in defined benefit plans includes pretax changes of $(152) during the year ended
December 31, 2010 and $(2,439) during the year ended December 31, 2009 related to changes in
benefit plans of one of the Company’s equity method investments.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 18 - us-gaap:QuarterlyFinancialInformationTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>18. Selected Quarterly Financial Data</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth selected quarterly financial data of the Company:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>First</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Second</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Third</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Fourth</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" colspan="2"><i>(Unaudited)</i></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Quarter</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left" colspan="2"><b>2010</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td colspan="3" valign="top" align="left">Net sales</td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">935,133</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,010,116</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,051,725</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,127,147</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="3" valign="top" align="left">Gross profit</td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">175,758</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">192,524</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">199,584</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">199,666</td>
<td> </td>
</tr>
<tr valign="bottom">
<td colspan="5" align="left">Restructuring/Asset impairment charges</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,947</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,511</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,166</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,375</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="5" nowrap="nowrap" align="left">Net income attributable to Sonoco</td>
<td> </td>
<td> </td>
<td align="right">48,572</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">58,953</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">59,019</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34,509</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td colspan="5" align="left">Per common share:</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="5" align="left">     Net income attributable to Sonoco:</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px">- basic
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">.48</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">.58</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">.58</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">.34</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px">- diluted
</div></td>
<td> </td>
<td> </td>
<td align="right">.48</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">.58</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">.57</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">.33</td>
<td> </td>
</tr>
<tr valign="bottom">
<td colspan="4" align="left">     Cash dividends</td>
<td>
<div style="margin-left:15px; text-indent:-15px">- common
</div></td>
<td> </td>
<td> </td>
<td align="right">.27</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">.28</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">.28</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">.28</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="4" align="left">     Market price</td>
<td>
<div style="margin-left:15px; text-indent:-15px">- high
</div></td>
<td> </td>
<td> </td>
<td align="right">31.86</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35.87</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34.00</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35.04</td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px">- low
</div></td>
<td> </td>
<td> </td>
<td align="right">26.17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28.83</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29.66</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">31.75</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left" colspan="2"><b>2009</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td colspan="3" valign="top" align="left">Net sales</td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">800,629</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">864,231</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">930,560</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,001,911</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="3" valign="top" align="left">Gross profit</td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">140,863</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">158,284</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">173,056</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">193,843</td>
<td> </td>
</tr>
<tr valign="bottom">
<td colspan="5" align="left">Restructuring/Asset impairment charges</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7,210</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,386</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(158</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9,047</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="5" nowrap="nowrap" align="left">Net income attributable to Sonoco</td>
<td> </td>
<td> </td>
<td align="right">23,122</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33,610</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">47,671</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">47,079</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td colspan="3" valign="top" align="center" nowrap="nowrap">Per common share:</td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="5" align="left">     Net income attributable to Sonoco:</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px">- basic
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">.23</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">.33</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">.47</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">.47</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px">- diluted
</div></td>
<td> </td>
<td> </td>
<td align="right">.23</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">.33</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">.47</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">.46</td>
<td> </td>
</tr>
<tr valign="bottom">
<td colspan="4" align="left" nowrap="nowrap">     Cash dividends</td>
<td>
<div style="margin-left:15px; text-indent:-15px">- common
</div></td>
<td> </td>
<td> </td>
<td align="right">.27</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">.27</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">.27</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">.27</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="4" align="left">     Market price</td>
<td>
<div style="margin-left:15px; text-indent:-15px">- high
</div></td>
<td> </td> <td> </td>
<td align="right">25.41</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26.18</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28.95</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30.61</td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px">- low
</div></td>
<td> </td>
<td> </td>
<td align="right">16.70</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20.27</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22.58</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26.17</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
false
--12-31
FY
2010
2010-12-31
10-K
0000091767
100283696
Yes
Large Accelerated Filer
3009037418
SONOCO PRODUCTS CO
No
Yes
-1459000
-1459000
49888000
42651000
1041000
-8811000
49993000
-1293000
-1765000
-8450000
375365000
436785000
428293000
508144000
12271000
6979000
231631000
240827000
-310469000
-292867000
421632000
441328000
4177000
4177000
8616000
8616000
15804000
15804000
10978000
8614000
3062580000
3281014000
996573000
1157516000
70758000
101655000
185245000
158249000
30897000
83590000
-26996000
1.07
1.08
1.11
0
0
300000000
300000000
100149000
100510000
99431000
99732000
100149000
100149000
100510000
100510000
7175000
7175000
-182697000
295692000
218655000
-10406000
4908000
1653000
-193103000
300600000
220308000
3398355000
2931285000
3356589000
118053000
16949000
-18844000
21689000
12498000
25738000
22997000
57105000
42100000
30571000
24583000
183034000
173587000
169665000
107366000
107366000
108979000
108979000
112941000
112941000
1.64
1.5
1.98
1.63
1.5
1.96
3065000
3770000
-1841000
351000
351000
68319000
79109000
38415000
-6997000
-1687000
7632000
5563000
17123000
711000
1030000
4209000
711000
1030000
4209000
2476000
14731000
-1422000
-48617000
813530000
839748000
724030000
666046000
767532000
202376000
214221000
254454000
147579000
147403000
189969000
9679000
7742000
11505000
73872000
34328000
96918000
54797000
66818000
64485000
-62614000
15438000
43255000
-58627000
16057000
66410000
-23659000
22233000
19757000
-5017000
-36492000
57071000
30742000
-9206000
704000
11855000
-2568000
-71000
7721000
-7393000
1330000
665000
249000
944000
115044000
130400000
53401000
40992000
37413000
43474000
34731000
37464000
114652000
147062000
173876000
222365000
6204000
2427000
2307000
3062580000
3281014000
805639000
780649000
462743000
603941000
14249000
15902000
2202000
2202000
-241378000
-219658000
-116582000
-110184000
-91510000
-283709000
379394000
390988000
375136000
164608000
151482000
201053000
-7350000
3663000
421000
249573000
252786000
338177000
153499000
167114000
-194149000
-194149000
56149000
56149000
13621000
13621000
-11600000
-11600000
8526000
8526000
-2906000
-2906000
-144612000
-3056000
-141556000
80780000
79535000
1245000
8119000
1232000
6887000
-350361000
-347305000
-3056000
145455000
144210000
1245000
18834000
17602000
1232000
61642000
41108000
35469000
31917000
-5939000
843000
1239000
24658000
106558000
107887000
111756000
5535000
5504000
137835000
123114000
104150000
145910000
20492000
122195000
29194000
30756000
81380000
52599000
321355000
323040000
0
0
30000000
30000000
0
0
0
0
0
0
33300000
66782000
6470000
7159000
23155000
39102000
24103000
365415000
-74000000
-95000000
30000000
19758000
19909000
8486000
157258000
164608000
-7350000
155145000
151482000
3663000
201474000
421000
201053000
926829000
944136000
118115000
45256000
358927000
28995000
12197000
9962000
100061000
26801000
23999000
1248043000
1336155000
4122385000
3597331000
4124121000
374396000
386459000
405356000
4177000
8616000
15804000
1366381000
1491791000
1463486000
21949000
-107374000
391628000
7175000
1150108000
1174518000
404939000
7175000
11543000
1205540000
-454679000
1380630000
1248043000
7175000
421632000
-310469000
14249000
1507693000
1336155000
15902000
7175000
-292867000
441328000
332000
468000
1099000
9977000
9977000
9316000
9316000
28550000
28550000
31000
51000
738000
843000
843000
1239000
1239000
24658000
24658000
811000
1990000
5063000
100986000
101029000
102543000
100321000
100780000
101599000
net of tax