0000091767
2010-06-28
2010-09-26
0000091767
2009-06-29
2009-09-27
0000091767
2009-01-01
2009-12-31
0000091767
2009-09-27
0000091767
2008-12-31
0000091767
2009-01-01
2009-09-27
0000091767
2010-09-26
0000091767
2009-12-31
0000091767
2009-06-28
0000091767
2010-10-19
0000091767
2010-01-01
2010-09-26
iso4217:USD
xbrli:shares
xbrli:shares
iso4217:USD
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<div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div>
<div align="left">
</div>
<div align="center" style="font-size: 10pt"><b></b></div>
<div align="center" style="font-size: 10pt"></div>
<div align="center" style="font-size: 10pt"></div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 1: Basis of Interim Presentation</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In the opinion of the management of Sonoco Products Company (the “Company” or “Sonoco”),
the accompanying unaudited condensed consolidated financial statements contain all
adjustments (consisting of only normal recurring adjustments, unless otherwise stated)
necessary to state fairly the consolidated financial position, results of operations and
cash flows for the interim periods reported herein. Operating results for the three and
nine months ended September 26, 2010, are not necessarily indicative of the results that
may be expected for the year ending December 31, 2010. These condensed consolidated
financial statements should be read in conjunction with the consolidated financial
statements and the notes thereto included in the Company’s Annual Report on Form 10-K for
the fiscal year ended December 31, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">With respect to the unaudited condensed consolidated financial information of the
Company for the three- and nine-month periods ended September 26, 2010 and September
27, 2009 included in this Form 10-Q, PricewaterhouseCoopers LLP reported that they have
applied limited procedures in accordance with professional standards for a review of
such information. However, their separate report dated October 25, 2010 appearing
herein, states that they did not audit and they do not express an opinion on that
unaudited financial information. Accordingly, the degree of reliance on their report on
such information should be restricted in light of the limited nature of the review
procedures applied. PricewaterhouseCoopers LLP is not subject to the liability
provisions of Section 11 of the Securities Act of 1933 for their report on the
unaudited financial information because that report is not a “report” or a “part” of a
registration statement prepared or certified by PricewaterhouseCoopers LLP within the
meaning of Sections 7 and 11 of the Act.
</div>
</div>
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<div align="left" style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 2: Shareholders’ Equity</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b><i>Earnings per Share</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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="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" style="border-bottom: 1px solid #000000"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Nine Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 26,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 27,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 26,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 27,</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">2010</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</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">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>
<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">$</td>
<td align="right">59,019</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">47,671</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">166,544</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">104,403</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: 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>
<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">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>
<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">101,693,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100,829,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">101,460,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100,717,000</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Dilutive effect of:
</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:45px; text-indent:-15px">Stock-based compensation
</div></td>
<td> </td>
<td> </td>
<td align="right">991,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">276,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">881,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">159,000</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 nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </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" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Dilutive shares outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">102,684,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">101,105,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">102,341,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100,876,000</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: 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>
<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">Reported net income attributable
to Sonoco 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>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Basic
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.58</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.47</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.64</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.04</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: 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>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Diluted
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.57</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.47</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.63</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.03</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: 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="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Stock options and stock appreciation rights to purchase 1,886,544 and 3,345,019 shares at
September 26, 2010 and September 27, 2009, respectively, were not dilutive and,
therefore, are excluded from the computations of diluted income attributable to Sonoco
per common share amounts. No adjustments were made to reported net income attributable to
Sonoco in the computations of earnings per share.
</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; margin-left: 4%"><b><i>Stock Repurchases</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company’s Board of Directors has authorized the repurchase of up to 5,000,000 shares
of the Company’s common stock. No shares were repurchased under this authorization
during the first nine months of 2010. Accordingly, at September 26, 2010, a total of
5,000,000 shares remain available for repurchase.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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 11,887 shares in the first nine months of 2010 at a
cost of $381, and 49,416 shares in the first nine months of 2009 at a cost of $1,203.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b><i>Dividend Declarations</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">On July 21, 2010, the Board of Directors declared a regular quarterly dividend of $0.28
per share. This dividend was paid September 10, 2010 to all shareholders of record as of
August 20, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">On October 18, 2010, the Board of Directors declared a regular quarterly dividend of
$0.28 per share. This dividend is payable December 10, 2010 to all shareholders of record
as of November 19, 2010.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 3: Acquisitions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">On June 29, 2010, the Company completed the acquisition of Associated Packaging
Technologies, Inc. (APT), a supplier of containers to the frozen food industry. 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, including
the cost of paying off various obligations of APT, 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 $72,535, identifiable intangibles of $22,100
and goodwill of $25,333 (the majority of which is expected to be tax deductible). Also
in the third quarter, the Company acquired a small tubes and cores business in Canada for
an all-cash purchase price of $4,078.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">On May 1, 2010, the Company completed the acquisition of Madem Reels USA, Inc., a
manufacturer of nailed wood and plywood reels for the wire and cable industry, at a cost
of $10,214 in cash. The acquisition of this business, which is accounted for in All
Other Sonoco, is expected to generate annual sales of approximately $9,000. In
conjunction with this acquisition, the Company recorded net tangible assets of $7,763 and
identifiable intangibles of $2,451.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">These acquisitions have been accounted for as purchases; accordingly, their results of
operations have been included in consolidated net income from the respective dates of
acquisition. Pro forma results have not been provided, as the acquisitions were not
material individually, or in the aggregate, to the Company’s financial statements.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 4: Restructuring and Asset Impairment</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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 previous
formal restructuring plans that are still active, although both were substantially
complete at September 26, 2010. These are reported as “Earlier Actions.”
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In addition, pursuant to notification from a large customer that the Company’s contract
to provide certain packaging would not be renewed in its entirety, during the third
quarter of 2010 the Company concluded that certain affected assets in its Consumer
Packaging segment had been impaired resulting in a pre-tax asset impairment charge of
$12,572.
</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; margin-left: 4%">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="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" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<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>Nine</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>Nine</b></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"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Months</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">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>
<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">362</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,220</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></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 nowrap="nowrap" align="left"> </td>
<td align="right">(1,449</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,653</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,498</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21,089</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">363</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">755</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,043</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,229</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">179</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">440</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,402</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,873</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Earlier Actions
</div></td>
<td> </td>
<td> </td>
<td align="right">139</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,016</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">309</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 nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </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" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Restructuring related charges
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(406</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">6,052</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">158</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17,754</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other asset impairments
</div></td>
<td> </td>
<td> </td>
<td align="right">12,572</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,572</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Restructuring/Asset impairment charges
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">12,166</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">18,624</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">158</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17,754</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Income tax benefit
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,150</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7,816</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,392</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Equity method investments, net of
tax
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(160</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">58</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">367</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Costs attributable to
Noncontrolling Interests, net of
tax
</div></td>
<td> </td>
<td> </td>
<td align="right">55</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">116</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,062</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,822</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 nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </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" 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">6,911</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10,982</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,213</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">16,551</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: 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="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Restructuring and asset impairment charges are included in “Restructuring/Asset
impairment charges” in the Condensed Consolidated Statements of Income.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company expects to recognize future additional cash costs totaling approximately
$3,700 in connection with previously announced restructuring actions and believes that
the majority of these charges will be incurred and paid by the end of 2010. The Company
regularly evaluates its cost structure, including its manufacturing capacity, and
additional restructuring actions may be undertaken.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b>2010 Actions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">During 2010, the Company initiated the consolidation of two manufacturing operations in
the Packaging Services segment into a single facility as well as the closure of a North
American tube and core plant (part of the Tubes and Cores/Paper segment). In addition,
the Company continued to realign its cost structure resulting in the elimination of 90
positions in 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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="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="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="2"><b>Third</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" style="border-bottom: 1px solid #000000"><b>2010 Actions</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Date</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total Cost</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"><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>
</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">184</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,409</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,834</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"><font style="font-family: Symbol">¾</font></td>
<td> </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">65</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,538</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,538</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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">63</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">63</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">35</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35</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>
</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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38</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">(126</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(234</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(234</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"><font style="font-family: Symbol">¾</font></td>
<td> </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>
<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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">400</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">121</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">145</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">145</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">83</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">152</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">227</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 nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </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"><!-- 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>Total Charges and Adjustments</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">362</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,220</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5,120</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: 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>
<!-- 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; margin-left: 4%">The following table sets forth the activity in the 2010 Actions restructuring
accrual included in “Accrued expenses and other” on the Company’s Condensed 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 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 nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>2010 Actions</b></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>Accrual Activity</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" style="border-bottom: 1px solid #000000"><b>2010 Year to Date</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Benefits</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>of Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Costs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</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">Liability at December 31, 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></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">3,750</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">407</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">297</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,454</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"><font style="font-family: Symbol">¾</font></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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(234</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">(3,035</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">(297</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,772</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Asset writeoffs
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(733</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(733</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">(18</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(18</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: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </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" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Liability at September 26, 2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">697</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">697</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: 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="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b>2009 Actions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">During 2009, the Company initiated closures in its Tubes and Cores/Paper segment
including 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. The Company also initiated the closures
of a rigid paper packaging plant in the United States (part of the Consumer Packaging
segment), a fulfillment service center in Germany (part of the Packaging Services
segment), and a molded plastics facility in the United States (part of All Other Sonoco).
The Company also sold a small Canadian recovered paper brokerage business during 2009.
In addition to the plant closures, the Company realigned its fixed cost structure
resulting in the elimination of approximately 210 positions in 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Below is a summary of 2009 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="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="6" style="border-bottom: 1px solid #000000"><b>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>2009</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="2"><b>Third</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Nine</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>Nine</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Incurred</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" style="border-bottom: 1px solid #000000"><b>2009 Actions</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>to Date</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total Cost</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"><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>
<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">(63</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(48</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">3,365</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9,222</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">13,477</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">13,477</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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">310</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">605</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">805</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">88</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">376</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,348</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,467</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,467</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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">198</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,060</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,436</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,436</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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">269</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">647</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">647</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">934</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">934</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>
<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">(2,112</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,937</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(282</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">6,420</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,446</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,446</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">20</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></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>
<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">581</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,840</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">736</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,338</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,756</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,806</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">37</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">636</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">715</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,365</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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">180</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">148</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">249</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">483</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">533</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 nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </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"><!-- 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>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,449</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">1,653</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5,498</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">21,089</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">30,282</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">32,032</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: 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>
<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>
<!-- 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; margin-left: 4%">The following table sets forth the activity in the 2009 Actions restructuring
accrual included in “Accrued expenses and other” on the Company’s Condensed 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 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 nowrap="nowrap" align="left"><b>2009 Actions</b></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>Accrual Activity</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" style="border-bottom: 1px solid #000000"><b>2010 Year to Date</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Benefits</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>of Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Costs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</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">Liability at December 31, 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8,825</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="left">$</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">1,339</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">419</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,804</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,562</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">(575</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,334</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,909</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">(5,597</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">(2,815</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,527</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Asset writeoffs
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,970</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,970</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">(31</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(31</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: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </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" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Liability at September 26, 2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,961</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,961</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: 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="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Proceeds of $4,621 were received in the third quarter of 2010 from the sale of the
land and building associated with a former tube and core manufacturing facility in Europe
that was closed in 2009. A gain of $2,172 was recognized on the sale and is reflected
under “Adjustments” in the “2009 Actions” table above.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b>2008 Actions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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 at 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 elimination of approximately 125 salaried positions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The estimated total cost of 2008 Actions is expected to reach $47,900, of which $47,209
had been incurred as of September 26, 2010. Below is a summary of expenses/(income)
incurred by segment for 2008 Actions for the three- and nine-month periods ended
September 26, 2010 and September 27, 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="6" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<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>Nine</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>Nine</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>2008 Actions</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Months</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<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">345</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">632</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">825</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,377</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">18</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">120</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">218</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,019</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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(278</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Corporate
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">111</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 nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </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"><!-- 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">363</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">755</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,043</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7,229</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: 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="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The accrual for 2008 actions totaled $763 and $2,954 as of September 26, 2010 and
December 31, 2009, respectively. Net cash payments during the nine months ended
September 26, 2010 were $3,249.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b>2007 Actions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In 2007, the Company initiated the closures of the following operations: a metal
ends plant in Brazil (part of the 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>
<!-- 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; margin-left: 4%">The estimated total cost of 2007 Actions is expected to reach $25,375, of which
$25,146 had been incurred as of September 26, 2010. Below is a summary of
expenses/(income) incurred by segment for 2007 Actions for the three- and nine-month
periods ended September 26, 2010 and September 27, 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="6" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<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>Nine</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>Nine</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>2007 Actions</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Months</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<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">149</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">366</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6,410</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(10,962</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Consumer Packaging segment
</div></td>
<td> </td>
<td> </td>
<td align="right">30</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">74</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">96</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">All other Sonoco
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total Charges and Adjustments</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">179</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">440</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6,402</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(10,873</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="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The prior year’s third quarter and nine months results include a gain from the
sale of assets associated with the Company’s former paper mill in China.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The accrual for 2007 Actions totaled $40 as of September 26, 2010 and $45 as of December
31, 2009. Net cash payments during the nine months ended September 26, 2010, were $439.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b>Earlier Actions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Earlier Actions consist 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
the first quarter of 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 Condensed Consolidated Statements of Income. At
September 26, 2010, the remaining restructuring accrual for Earlier Actions was $491.
The accrual, included in “Accrued expenses and other” on the Company’s Condensed
Consolidated Balance Sheet, relates primarily to building lease terminations and unpaid
severance and termination benefits. The Company expects to recognize future pre-tax
charges of approximately $150 associated with Earlier Actions, primarily related to
building lease terminations and costs of exiting two closed facilities in Europe. The
Company expects both the liability and the future costs to be fully paid at the end of
2012, using cash generated from operations.
</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:ComprehensiveIncomeNoteTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 5: Comprehensive Income</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The following table reconciles net income to comprehensive income attributable to Sonoco:
</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" style="border-bottom: 1px solid #000000"><b>Three Months Ended</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>Nine Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 26,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 27,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 26,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 27,</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">2010</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</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">Net income
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">59,221</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">51,377</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">166,730</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">108,102</td>
<td> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other comprehensive income/(loss):
</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">Foreign currency translation adjustments
</div></td>
<td> </td>
<td> </td>
<td align="right">38,776</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">47,048</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,115</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">74,556</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Changes in defined benefit plans, net of tax
</div></td>
<td> </td>
<td> </td>
<td align="right">9,429</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(66</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">17,880</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29,187</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Changes in derivative financial
instruments, net of tax
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,243</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">3,336</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,053</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">6,143</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 nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </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">Comprehensive income
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">104,183</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">101,695</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">176,442</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">217,988</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Comprehensive (income)/loss attributable to
noncontrolling interests
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(202</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,706</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(186</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,699</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Comprehensive income attributable to Sonoco
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">103,981</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">97,989</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">176,256</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">214,289</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: 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>
<!-- 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; margin-left: 4%">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
nine months ended September 26, 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="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</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>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>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>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>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>Comprehensive</b></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"><b>Adjustments</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Plans</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Instruments</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Loss</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<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">$</td>
<td align="right">(310,469</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Year-to-date change
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,115</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">17,880</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,053</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">9,712</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at September 26, 2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6,683</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(298,778</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(8,662</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(300,757</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="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">At September 26, 2010, the Company had various contracts outstanding to fix the costs of
certain anticipated raw materials and energy purchases as well as certain instruments to
hedge the interest rate on a planned capital markets transaction. These contracts, which
have maturities ranging from October 2010 to December 2012, qualify as cash flow hedges
under U.S. GAAP. The amounts included in accumulated other comprehensive loss related to
these cash flow hedges were an unfavorable position of $13,764 ($8,662 after tax) at
September 26, 2010, and an unfavorable position of $7,329 ($4,609 after tax) at December
31, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The cumulative tax benefit on Derivative Financial Instruments was $5,085 at September
26, 2010, and $2,720 at December 31, 2009. During the three- and nine-month periods
ended September 26, 2010, the tax benefit on Derivative Financial Instruments increased
by $1,869 and $2,365, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The cumulative tax benefit on Defined Benefit Plans was $175,221 at September 26, 2010,
and $186,001 at December 31, 2009. During the three- and nine-month periods ended
September 26, 2010, the tax benefit on Defined Benefit Plans decreased by $(5,812) and
$(10,780), respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Noncontrolling interests included current period foreign currency translation adjustments
of $786 and $(1,243) in the nine-month periods ended September 26, 2010 and September 27,
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:GoodwillAndIntangibleAssetsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 6: Goodwill and Other Intangible Assets</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b><i>Goodwill</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">A summary of the changes in goodwill for the nine months ended September 26, 2010 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="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</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>
<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>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" style="border-bottom: 1px solid #000000"><b>Segment</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Segment</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Segment</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Sonoco</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill at December 31, 2009
</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:30px; text-indent:-15px">2010 Acquisitions
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25,333</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25,333</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; 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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></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:30px; text-indent:-15px">Foreign currency translation
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,589</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,224</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(119</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,484</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: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </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"><!-- 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">Goodwill at September 26, 2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">231,070</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">385,355</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">68,656</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">835,163</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: 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>
<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="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">“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>
<!-- 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; margin-left: 4%">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, $128,000, $92,000, $150,000, and $6,000, respectively at September 26, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b><i>Other Intangible Assets</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Other intangible assets are amortized on a straight-line basis over their respective
useful lives, which generally range from three to twenty years. The Company has no
intangibles with indefinite lives.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">A summary of other intangible assets as of September 26, 2010 and December 31, 2009 is as
follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>September 26,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other Intangible Assets, gross
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Patents
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">2,593</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,592</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Customer lists
</div></td>
<td> </td>
<td> </td>
<td align="right">179,846</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">161,007</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Land use rights
</div></td>
<td> </td>
<td> </td>
<td align="right">349</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">340</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Supply agreements
</div></td>
<td> </td>
<td> </td>
<td align="right">1,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,000</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">16,438</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,830</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other Intangible Assets, gross
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">200,226</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">172,769</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accumulated Amortization
</div></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(66,899</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(57,725</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other Intangible Assets, net
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">133,327</td>
<td> </td>
<td> </td>
<td align="right">$</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; margin-left: 4%">The Company recorded $28,629 of identifiable intangibles in connection with 2010
acquisitions. Of this total, $19,882 related to customer lists and $8,747 related to
other intangible assets, primarily proprietary technology, as well as trademarks and a
non-compete agreement. The customer lists will be amortized over a period of twelve to
fifteen years while the other intangible assets will be amortized over lives ranging from
three to ten years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Aggregate amortization expense was $3,761 and $3,313 for the three months ended September
26, 2010 and September 27, 2009, respectively, and $9,747 and $9,377 for the nine months
ended September 26, 2010 and September 27, 2009, respectively. Amortization expense on
other intangible assets is expected to approximate $13,700 in 2010, $14,000 in 2011,
$13,600 in 2012, $13,300 in 2013 and $12,900 in 2014.
</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:FairValueDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 7: Fair Value Measurements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The following table sets forth information regarding the Company’s financial assets and
financial liabilities, excluding retirement and postretirement plan assets, measured at
fair value on a recurring basis. The Company does not currently have any nonfinancial
assets or liabilities that are recognized or disclosed at fair value on a recurring
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 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="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </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> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>Fair Value Measurements at Reporting Date Using</b></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>Quoted Market</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> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Prices in Active</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Significant</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> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Market for</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Other</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Significant</b></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>Identical</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Observable</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Unobservable</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 0px solid #000000"><b>September 26,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Assets/Liabilities</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 0px solid #000000"><b>Inputs</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 0px solid #000000"><b>Inputs</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Description</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 1)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 2)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 3)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<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="right">$</td>
<td align="right">2,453</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,453</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred
Compensation
Plan Assets
</div></td>
<td> </td>
<td> </td>
<td align="right">2,082</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,082</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Derivatives
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">16,124</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">16,124</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Fair value measurements for the Company’s derivatives, which at September 26, 2010,
consisted primarily of natural gas, aluminum, and foreign currency contracts entered into
for hedging purposes, 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; margin-left: 4%">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>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Excluding retirement and postretirement plan assets, none of the Company’s financial
assets or liabilities are measured at fair value using significant unobservable inputs.
There were no significant transfers in and out of Level 1 and Level 2 fair value
measurements during the three- and nine-month periods ended September 26, 2010.
</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:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 8: Financial Instruments and Derivatives</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The following table sets forth the carrying amounts and fair values of the Company’s
significant financial instruments for which 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="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </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 style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>September 26, 2010</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>December 31, 2009</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Carrying</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Fair</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Carrying</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Fair</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Amount</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Value</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Amount</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Value</b></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">Notes payable
and current
portion of
long-term debt
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">112,372</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">112,864</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">118,053</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">121,318</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term debt
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">513,592</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">582,143</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">462,743</td>
<td> </td>
<td> </td>
<td align="right">$</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; margin-left: 4%">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; margin-left: 4%">In accordance with U.S. GAAP, 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. The Company has determined all hedges to be highly effective and
as a result no material ineffectiveness has been recorded.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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 forward contracts or other similar derivative contracts in order
to reduce the effect of commodity price fluctuations, and to manage its exposure to
foreign currency cash flows, assets, and liabilities. 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; margin-left: 4%"><u>Cash Flow Hedges</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">At September 26, 2010 and December 31, 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>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><i>Commodity Cash Flow Hedges</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company has entered into certain derivative contracts to manage the cost of
anticipated purchases of natural gas and aluminum. At September 26, 2010, natural gas
swaps covering approximately 6.9 million MMBtus were outstanding. These contracts
represent approximately 72%, 70% and 50% of anticipated U.S. and Canadian usage for the
remainder of 2010, 2011 and 2012, respectively. Additionally, the Company had swap
contracts covering 1.6 thousand metric tons of aluminum representing approximately 33%,
6% and 2% of anticipated usage for the remainder of 2010, 2011 and 2012, respectively.
The fair values of the Company’s commodity cash flow hedges were in loss positions of
$15,209 and $8,294 at September 26, 2010 and December 31, 2009, respectively. The amount
of the loss included in “Accumulated other comprehensive loss” at September 26, 2010,
that is expected to be reclassified to the income statement during the next twelve months
is $10,533.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><i>Foreign Currency Cash Flow Hedges</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company has entered into forward contracts to hedge certain anticipated foreign
currency denominated sales and purchases forecasted to occur in 2010. At September 26,
2010, the net position of these contracts was to purchase 12.1 million Canadian dollars,
47.4 million Mexican pesos, 60.2 million euros, and 0.7 million British pounds, and to
sell 1.3 million Australian dollars and 0.8 million New Zealand dollars. The fair value
of these foreign currency cash flow hedges was $607 at September 26, 2010, and $721 at
December 31, 2009. The amount of the gain included in “Accumulated other comprehensive
loss” at September 26, 2010 expected to be reclassified to the income statement during
the next twelve months is $570.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><i>Interest Rate Cash Flow Hedge</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">During the quarter ended September 26, 2010 the Company entered into a derivative
financial instrument with a notional amount of $100 million to lock the
treasuries-related component of the interest rate for a portion of a contemplated capital
markets debt transaction. The instrument has a term through November 3, 2010, and had a
fair value of $519 at the end of the quarter.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><u>Fair Value Hedges</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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. The Company received a cash payment for
this settlement of approximately $5,900. The unamortized value of the gain, $5,600, was
included with the related bond at September 26, 2010. At December 31, 2009, a decrease in
carrying value of the bond of $(572) was recorded in conjunction with this swap. This
gain will be amortized over the life of the debentures and netted against interest costs.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><u>Other Derivatives</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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 for these
instruments. As such, changes in fair value are recorded directly to
income and expense in the periods that they occur. At September 26, 2010, the net
positions of these contracts were to purchase 13.0 million Canadian dollars, 1.9 million
euros, 0.9 million British pounds, 10.1 billion
Colombian pesos, and to sell 0.3 million
Australian dollars. The total fair value of these hedges, all of which were short-term,
was $412 at September 26, 2010, and $795 at December 31, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The following table sets forth the location and fair values of the Company’s
derivative instruments at September 26, 2010:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="7%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Description</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Balance Sheet Location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives designated as hedging instruments:
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity Contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other Current Assets</td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">478</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity Contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other Long Term Assets</td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">89</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity Contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other Current Liabilities</td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">11,348</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity Contracts
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other Long Term Liabilities</td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">4,428</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign Exchange Contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other Current Assets</td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">865</td>
<td valign="top"> </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 align="left" valign="top">Other Current Liabilities</td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">258</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest Rate Hedge Contract
</div></td>
<td> </td>
<td align="left" valign="top">Other Current Assets</td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">519</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives not designated as hedging instruments:
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign Exchange Contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other Current Assets</td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">502</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign Exchange Contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other Current Liabilities</td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">90</td>
<td valign="top"> </td>
</tr>
<!-- End Table Body -->
</table>
</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="1%" nowrap="nowrap" align="left"> </td>
<td width="1%"> </td>
<td>The following table sets forth the effect of the Company’s derivative instruments on
financial performance for the three months ended September 26, 2010 and September 27,
2009:</td>
</tr>
</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="26%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="14%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="34%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </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"><b>Location of Gain</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center"> </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>Amount of Gain or</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>or (Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Amount of Gain or</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Location of Gain or</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Amount of Gain or</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>(Loss) Recognized</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Reclassified from</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>(Loss) Reclassified</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>(Loss) Recognized in</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>(Loss) Recognized</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>in OCI on</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Accumulated OCI</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>from Accumulated</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Income on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>in Income on</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 0px solid #000000"><b>Derivative</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Into Income</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>OCI Into Income</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Derivative</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Derivative</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Description</b><b></b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>(Ineffective Portion)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Ineffective Portion)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Three months ended
September 26, 2010</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives in Cash
Flow Hedging Relationships:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </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 nowrap="nowrap" align="right">$</td>
<td align="right">(43</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left" valign="top">Net sales</td>
<td> </td>
<td align="right">$</td>
<td align="right">1,229</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Selling, general and administrative</td>
<td> </td>
<td align="right">$</td>
<td align="right">320</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(641</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </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="right">$</td>
<td align="right">(7,106</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(2,103</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td align="right">$</td>
<td align="right">776</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest Rate Swap
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">519</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Interest expense</td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Interest expense</td>
<td> </td>
<td align="right">$</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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top">Interest expense</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(121</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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </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>Three months ended
September 27, 2009</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives in Cash
Flow Hedging
Relationships:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </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="right">$</td>
<td align="right">1,509</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Net sales</td>
<td> </td>
<td align="right">$</td>
<td align="right">3,430</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Net sales</td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </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 align="left" valign="top">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(2,516</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></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="right">$</td>
<td align="right">(670</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(5,443</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td align="right">$</td>
<td align="right">17</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Fair value hedge
derivatives:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest Rate Swap
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top">Interest expense</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(11</td>
<td nowrap="nowrap">)</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="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="39%"> </td>
<td width="5%"> </td>
<td width="48%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Location of Gain or</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>Derivatives not</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>(Loss) Recognized</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>designated as hedging</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 0px solid #000000"><b>in Income</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Gain or (Loss)</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>instruments:</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Statement</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Recognized</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Three months ended
September 26, 2010</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </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" valign="top">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(12</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top">Selling, general and administrative</td>
<td> </td>
<td align="right">$</td>
<td align="right">21</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Three months ended
September 27, 2009</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </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" valign="top">Cost of sales</td>
<td> </td>
<td align="right">$</td>
<td align="right">125</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top">Selling, general and administrative</td>
<td> </td>
<td align="right">$</td>
<td align="right">397</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The following table sets forth the effect of the Company’s derivative instruments on
financial performance for the nine months ended September 26, 2010 and September 27,
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="25%"> </td>
<td width="2%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="14%"> </td>
<td width="2%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="33%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </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"><b>Location of Gain</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center"> </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>Amount of Gain or</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>or (Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Amount of Gain or</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Location of Gain or</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Amount of Gain or</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>(Loss) Recognized</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Reclassified from</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>(Loss) Reclassified</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>(Loss) Recognized in</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>(Loss) Recognized</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>in OCI on</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Accumulated OCI</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>from Accumulated</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Income on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>in Income on</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 0px solid #000000"><b>Derivative</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Into Income</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>OCI Into Income</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Derivative</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Derivative</b></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="3" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>(Ineffective Portion)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Ineffective Portion)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Nine months ended
September 26, 2010</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives in Cash Flow
Hedging Relationships:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </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="right">$</td>
<td align="right">1,293</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Net sales</td>
<td> </td>
<td align="right">$</td>
<td align="right">2,831</td>
<td> </td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Selling, general and administrative</td>
<td> </td>
<td align="right">$</td>
<td align="right">36</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(1,327</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </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="right">$</td>
<td align="right">(13,828</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(7,109</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(323</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest Rate Swap
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">519</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Interest expense</td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Interest expense</td>
<td> </td>
<td align="right">$</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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top">Interest expense</td>
<td> </td>
<td align="right">$</td>
<td align="right">78</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Nine months ended
September 27, 2009</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives in Cash Flow
Hedging Relationships:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign Exchange Contracts
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">3,058</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Net sales</td>
<td> </td>
<td align="right">$</td>
<td align="right">3,784</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Net sales</td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </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 align="left" valign="top">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(2,896</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></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="right">$</td>
<td align="right">(12,620</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(20,325</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td align="right">$</td>
<td align="right">470</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Fair value hedge
derivatives:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest Rate Swap
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top">Interest expense</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(11</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="39%"> </td>
<td width="5%"> </td>
<td width="48%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Location of Gain or</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>Derivatives not</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>(Loss) Recognized</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>designated as hedging</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 0px solid #000000"><b>in Income</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Gain or (Loss)</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>instruments:</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Statement</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Recognized</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Nine months ended
September 26, 2010</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </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" valign="top">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(20</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top">Selling, general and administrative</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(51</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 align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Nine months ended
September 27, 2009</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </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" valign="top">Cost of sales</td>
<td> </td>
<td align="right">$</td>
<td align="right">725</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top">Selling, general and administrative</td>
<td> </td>
<td align="right">$</td>
<td align="right">698</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 9 - us-gaap:ScheduleOfDefinedBenefitPlansDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 9: Employee Benefit Plans</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b><i>Retirement Plans and Retiree Health and Life Insurance Plans</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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. The
Company also sponsors contributory pension plans covering the majority of its employees
in the United Kingdom, Canada, and the Netherlands, as well as postretirement healthcare
and life insurance benefits to the majority of its retirees and their eligible dependents
in the United States and Canada. Effective December 31, 2003, the Company froze
participation for newly hired salaried and non-union hourly U.S. employees in its
traditional defined benefit plan. The Company adopted a defined contribution plan, the
Sonoco Investment and Retirement Plan (SIRP), covering its non-union U.S. employees hired
on or after January 1, 2004.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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. At that
time, remaining active participants in the U.S. qualified plan will become participants
in the SIRP effective January 1, 2019. Active participants in 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. The plan amendment also affected
participants covered by the pension restoration plan (a nonqualified plan) as the benefit
formulas for the restoration plan are linked to the qualified plan. The plan amendment
resulted in the assets and liabilities of the U.S. qualified and nonqualified plans being
remeasured as of February 4, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The components of net periodic benefit cost (income) 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 nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Three Months Ended</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>Nine Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 26,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 27,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 26,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 27,</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">2010</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</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"><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>
<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">$</td>
<td align="right">3,763</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,860</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">14,467</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">16,193</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">17,569</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,798</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">52,716</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">54,160</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">(19,202</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(14,838</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(57,659</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(43,888</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">110</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">104</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">326</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">292</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">43</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">205</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">102</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">719</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">9,306</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,704</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,317</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,550</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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">661</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,005</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"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">838</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 nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </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:30px; text-indent:-15px">Net periodic benefit cost
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">11,589</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">20,494</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">36,269</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">61,869</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: 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>
<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>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>
<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">$</td>
<td align="right">255</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">349</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">840</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,036</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">382</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,014</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,568</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,008</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">(338</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(287</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,021</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(852</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">(2,451</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,782</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7,503</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8,252</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of net actuarial loss/(gain)
</div></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">831</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,097</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,466</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 nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </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" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net periodic benefit income
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2,220</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(875</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,019</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2,594</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="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">As a result of the 2009 amendment to the U.S. defined benefit pension plans described
above, the Company recognized curtailment losses totaling $3,005 in 2009. Approximately
75% of the losses are included in “Cost of sales” in the Condensed Consolidated
Statements of Income; the remainder are included in “Selling, general and administrative
expenses.” The closure of a paper mill in Canada in 2008 resulted in the recognition of a
settlement loss of $838 in the second quarter of 2009. This charge is included in
“Restructuring/Asset impairment charges” in the Condensed 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 align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">During the nine months ended September 26, 2010, the Company made contributions of
$13,522 to its defined benefit retirement and retiree health and life insurance plans.
The Company anticipates that it will make additional contributions of approximately
$5,350 in 2010. Funding of the Company’s U.S. qualified defined benefit pension plan is
not required in 2010 due to the $100,000 voluntary contribution made in December 2009 and
the Company’s ability to utilize funding credits arising from previously funding the plan
in excess of minimum requirements. Although not required, the Company may make further
voluntary contributions to the plan before the end of 2010. No assurances can be made,
however, about funding requirements beyond 2010, as they will depend largely on actual
investment returns and future actuarial assumptions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b><i>Sonoco Investment and Retirement Plan (SIRP)</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company recognized SIRP expense totaling $2,148 and $930 for the quarters ended
September 26, 2010 and September 27, 2009, respectively, and $6,902 and $4,500 for the
nine month periods ended September 26, 2010 and September 27, 2009, respectively.
Contributions to the SIRP, annually funded in the first quarter, totaled $4,822 during
the nine months ended September 26, 2010. No additional SIRP contributions are expected
during the remainder of 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b><i>Sonoco Savings Plan</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company sponsors the Sonoco Savings Plan, a defined contribution retirement plan, for
its U.S. employees. The plan provides for participant contributions of 1% to 30% of gross
pay. The plan provides 100% Company matching on the first 3% of pre-tax contributions,
50% Company matching on the next 2% of pre-tax contributions and 100% immediate vesting.
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 pre-tax contributions.
</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:IncomeTaxDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 10: Income Taxes</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company’s effective tax rate for the three- and nine-month periods ending September
26, 2010 was 27.6% and 29.6%, respectively, and its effective tax rate for the three- and
nine-month periods ending September 27, 2009 was 25.1% and 29.0%, respectively. The
quarterly and year-to-date rates for both years varied from the U.S. statutory rate due
primarily to state income taxes, the favorable effects of international operations that
are subject to tax rates generally lower than the U.S. rate, the favorable effect of the
U.S. federal manufacturer’s deduction, and the decrease in our reserve for uncertain tax
positions due to the expiration of statutes of limitations. These favorable benefits
were partially offset by the unfavorable effects of state taxes and other U.S. tax
adjustments.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company and/or its subsidiaries file federal, state and local income tax returns in
the United States and various foreign jurisdictions. The Company is no longer subject to
U.S. federal income tax examination by tax authorities for years before 2007. With few
exceptions, the Company is no longer subject to examination prior to 2005 with respect to
U.S. state and local and non-U.S. income taxes.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">There have been no significant changes in the Company’s liability for uncertain tax
positions since December 31, 2009. The Company’s estimate for the potential outcome for
any uncertain tax issue is highly judgmental. Management believes that any reasonably
foreseeable outcomes related to these matters have been adequately provided for. 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
Company’s 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 11 - us-gaap:ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 11: New Accounting Pronouncements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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; margin-left: 4%">Effective July 1, 2009, changes to the Codification are communicated through an
Accounting Standards Update (ASU). As of October 25, 2010, the FASB has issued ASUs
2010-01 through 2010-25. The Company has reviewed each ASU and determined that none will
have a material impact on the Company’s financial statements.
</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:SegmentReportingDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 12: Financial Segment Information</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Sonoco reports its results in three segments, Consumer Packaging, Tubes and Cores/Paper
and Packaging Services. The remaining operations are reported as All Other Sonoco.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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; margin-left: 4%">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; margin-left: 4%">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; margin-left: 4%">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 and
spools; molded and extruded plastics; custom-designed protective packaging; and paper
amenities such as coasters and glass covers.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The following table sets forth net sales, intersegment sales and operating profit for the
Company’s three reportable segments and All Other Sonoco. Operating profit at the segment
level is defined as “Income before interest and income taxes” on the Company’s Condensed
Consolidated Statements of Income, adjusted for restructuring/asset impairment charges,
which are not allocated to the reporting segments.
</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" style="font-size: 10pt; margin-top: 18pt"><b>FINANCIAL SEGMENT INFORMATION</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="6" style="border-bottom: 1px solid #000000"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Nine Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 26,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 27,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 26,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">September 27,</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">2010</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</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">Net Sales:
</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">Consumer Packaging
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">436,556</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">398,800</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,210,673</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,129,892</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Tubes and Cores/Paper
</div></td>
<td> </td>
<td> </td>
<td align="right">412,279</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">346,360</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,197,793</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">958,091</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Packaging Services
</div></td>
<td> </td>
<td> </td>
<td align="right">112,373</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">113,317</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">338,045</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">301,295</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">All Other Sonoco
</div></td>
<td> </td>
<td> </td>
<td align="right">90,517</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">72,083</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">250,463</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">206,142</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Consolidated
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,051,725</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">930,560</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,996,974</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,595,420</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Intersegment Sales:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Consumer Packaging
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">709</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">369</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,836</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,467</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Tubes and Cores/Paper
</div></td>
<td> </td>
<td> </td>
<td align="right">23,024</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,306</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">67,841</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56,999</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Packaging Services
</div></td>
<td> </td>
<td> </td>
<td align="right">315</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">239</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">831</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">910</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">All Other Sonoco
</div></td>
<td> </td>
<td> </td>
<td align="right">12,159</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,405</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33,338</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27,810</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Consolidated
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">36,207</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">31,319</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">103,846</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">87,186</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income Before Income Taxes:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Operating Profit
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Consumer Packaging
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">44,779</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">42,645</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">132,571</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">121,166</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Tubes and Cores/Paper
</div></td>
<td> </td>
<td> </td>
<td align="right">37,849</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21,448</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">96,272</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48,433</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Packaging Services
</div></td>
<td> </td>
<td> </td>
<td align="right">1,907</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,433</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,554</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,994</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">All Other Sonoco
</div></td>
<td> </td>
<td> </td>
<td align="right">12,516</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,445</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,161</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17,987</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Restructuring/Asset
impairment charges
</div></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">(158</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(18,624</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17,754</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest, net
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8,444</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9,401</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(25,439</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(29,103</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: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </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" style="background: #cceeff">
<td>
<div style="margin-left:60px; text-indent:-15px">Consolidated
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">76,441</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">65,412</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">225,495</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">147,723</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: 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="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Prior year results have been adjusted for the reclassification between segments of a
small global brand artwork management business that was previously included in the
Packaging Services segment. The impact of this reclassification on the three and nine
months ended September 27, 2009, was to transfer $3,894 and $10,282 of net sales and $596
and $814 of operating profit, respectively, from the Packaging Services segment to the
Consumer Packaging segment.
</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:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 13: Commitments and Contingencies</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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. Information with respect to these and other exposures appears
in Part II — Item 8 — “Financial Statements and Supplementary Data” (Note 14 —
“Commitments and Contingencies”) in the Company’s Annual Report on Form 10-K. 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; margin-left: 4%">Pursuant to U.S. GAAP, 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. 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>
<!-- 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; margin-left: 4%"><b><i>Environmental Matters</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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”). U.S.
Mills and NCR reached an agreement between themselves that each would fund 50% of the
costs of remediation. The Company has expensed a total of $17,650 for its estimated
share of the total cleanup cost of the Site, and through September 26, 2010, has spent a
total of $14,467. The Company currently estimates that its share of future related costs
may amount to between $1,900 and $4,900. However, the actual costs associated with
cleanup of the Site are dependent upon many factors and it is 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; margin-left: 4%">The EPA and Wisconsin Department of Natural Resources (WDNR) have also 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. A detailed description of the claims and proceedings associated
therewith appears in Part II — Item 8 — “Financial Statements and Supplementary Data”
(Note 14 — “Commitments and Contingencies”) in the Company’s Annual Report on Form 10-K.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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. U.S. Mills plans to defend
the suit vigorously.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Since 2007, U.S. Mills has expensed a total of $60,825 for potential liabilities
associated with the Fox River contamination (not including amounts expensed for
remediation at the Site) and through September 26, 2010, has spent a total of $5,083,
primarily on legal fees. 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 previously been 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 $84,000 at September 26, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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>
<!-- 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; margin-left: 4%">As of September 26, 2010 and December 31, 2009, the Company (and its subsidiaries) had
accrued $58,925 and $63,800, respectively, related to environmental contingencies. Of
these, a total of $58,925 and $60,414 relate to U.S. Mills at September 26, 2010 and
December 31, 2009, respectively. These accruals are included in “Accrued expenses and
other” on the Company’s Condensed Consolidated Balance Sheets. U.S. Mills recognized a
$40,825 benefit in 2008 from settlements reached and proceeds received on certain
insurance policies covering the Fox River contamination. 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 reallocate some of the costs it incurs among other parties. There can be no
assurance that such claims for recovery or reallocation would be successful and no
amounts have been recognized in the consolidated financial statements of the Company for
such potential recovery or reallocation.
</div>
</div>
false
--12-31
Q3
2010
2010-09-26
10-Q
0000091767
102902130
Yes
Large Accelerated Filer
2273454192
SONOCO PRODUCTS CO
No
Yes
299950000
342129000
3291000
8088000
-24562000
23481000
-2215000
-8400000
375365000
426827000
428293000
546532000
12271000
7431000
-310469000
-300757000
421632000
448704000
3062580000
3302884000
996573000
1178931000
101655000
194118000
185245000
168700000
92463000
-16545000
0.81
0.27
0.83
0.28
0
0
300000000
300000000
100149000
100690000
100149000
100690000
7175000
7175000
2123217000
757504000
2429108000
852141000
118053000
112372000
-7484000
281000
25738000
25843000
57105000
55646000
30571000
29684000
128104000
124408000
1.04
0.47
1.64
0.58
1.03
0.47
1.63
0.57
3863000
-2279000
-5250000
-1489000
4030000
10415000
384000
2123000
384000
2123000
16274000
-836000
813530000
835163000
472203000
173056000
567866000
199584000
147723000
65412000
225495000
76441000
104811000
48976000
158642000
55350000
3291000
2401000
8088000
3871000
42912000
16436000
66853000
21091000
20160000
54104000
42064000
105659000
-30989000
42138000
-46241000
-46183000
-18043000
-13241000
-7336000
3220000
115044000
133327000
31167000
10202000
27045000
9176000
114652000
141648000
173876000
211577000
2064000
801000
1606000
732000
3062580000
3302884000
805639000
888759000
462743000
513592000
14249000
15220000
-200674000
-39148000
-68566000
-235704000
357840000
260586000
104403000
47671000
166544000
59019000
3699000
3706000
186000
202000
176826000
74813000
250934000
84885000
153499000
162420000
61642000
59242000
35469000
30642000
-5939000
1203000
381000
80876000
83432000
500000
134260000
82807000
101159000
17765000
18344000
63931000
38152000
321355000
311004000
33300000
53989000
3239000
12079000
23129000
8094000
-95000000
43000000
16956000
8115000
108102000
51377000
166730000
59221000
926829000
937397000
32304000
13329000
10184000
9309000
17754000
158000
18624000
12166000
1248043000
1330261000
2595420000
930560000
2996974000
1051725000
277623000
98085000
298308000
102533000
5580000
12357000
1366381000
1485383000
1380630000
1500603000
1133000
2353000
100876000
101105000
102341000
102684000
100717000
100829000
101460000
101693000
The year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles.