UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 11-K
[X]
|
ANNUAL REPORT PURSUANT TO SECTION 15 (d) of | |||
| THE SECURITIES EXCHANGE ACT OF 1934 | ||||
| For the Fiscal Year Ended December 31, 2003 | ||||
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 15 (d) of | |||
| THE SECURITIES EXCHANGE ACT OF 1934 |
For the Transition period from to
Commission file number 0-516
SONOCO SAVINGS PLAN
SONOCO PRODUCTS COMPANY
ONE NORTH SECOND STREET
POST OFFICE BOX 160
HARTSVILLE, SOUTH CAROLINA 29551-0160
Sonoco Savings Plan
Financial Statements and Supplemental Schedule
December 31, 2003 and 2002
Sonoco Savings Plan
Index
| Page(s) | ||||
Report of Independent Registered Public Accounting Firm |
1 | |||
Financial Statements |
||||
Statements of Net Assets Available for Benefits
December 31, 2003 and 2002 |
2 | |||
Statements of Changes in Net Assets Available for Benefits
Years Ended December 31, 2003 and 2002 |
3 | |||
Notes to Financial Statements |
4–9 | |||
Supplemental Schedules |
||||
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)
December 31, 2003 |
10–13 | |||
Schedule H, Line 4j – Schedule of Reportable Transactions
December 31, 2003 |
14 | |||
Note
|
Other Schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable. |
Report of Independent Registered Public Accounting Firm
To the Participants and Employee Benefits Committee of the
Sonoco Savings Plan
In our opinion, the accompanying Statements of Net Assets Available for Benefits and the related Statements of Changes in Net Assets Available for Benefits present fairly, in all material respects, the net assets available for benefits of the Sonoco Savings Plan (the “Plan”) at December 31, 2003 and 2002, and the changes in the net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the Standards of the Public Company Accounting Oversight Board (United States) and auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedules of Assets (Held at End of Year) and Reportable Transactions are presented for purposes of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plan’s management. These supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.
| /s/PricewaterhouseCoopers LLP | ||||
| PricewaterhouseCoopers LLP | ||||
Charlotte, North Carolina
June 16, 2004
1
Sonoco Savings Plan
| (in thousands of dollars) |
2003 |
2002 |
||||||
Assets |
||||||||
Investments, at fair value |
$ | 284,769 | $ | 263,177 | ||||
Investments, at contract value |
141,064 | 135,194 | ||||||
Contribution
receivable - employer |
674 | 1,181 | ||||||
Net assets available for benefits |
$ | 426,507 | $ | 399,552 | ||||
The accompanying notes are an integral part of these financial statements.
2
Sonoco Savings Plan
| (in thousands of dollars) |
2003 |
2002 |
||||||
Investment income (loss) |
||||||||
Net appreciation (depreciation) |
$ | 45,733 | $ | (44,777 | ) | |||
Interest and dividends |
11,499 | 11,154 | ||||||
| 57,232 | (33,623 | ) | ||||||
Investment expenses |
(913 | ) | (764 | ) | ||||
Net investment income (loss) |
56,319 | (34,387 | ) | |||||
Contributions |
||||||||
Employer |
12,092 | 11,481 | ||||||
Participants |
24,131 | 24,398 | ||||||
Total contributions |
36,223 | 35,879 | ||||||
Total additions |
92,542 | 1,492 | ||||||
Distributions to participants |
(46,364 | ) | (34,109 | ) | ||||
Net increase (decrease) in net assets available for
benefits before transfer (to) from other qualified plan |
46,178 | (32,617 | ) | |||||
Transfer (to) from other qualified plan |
(19,223 | ) | 35,896 | |||||
Net increase in net assets available for benefits
after transfer (to) from other qualified plan |
26,955 | 3,279 | ||||||
Net assets available for benefits |
||||||||
Beginning of year |
399,552 | 396,273 | ||||||
End of year |
$ | 426,507 | $ | 399,552 | ||||
The accompanying notes are an integral part of these financial statements.
3
Sonoco Savings Plan
| 1. | Description of the Plan | |||
| General The Sonoco Savings Plan (“the Plan”) is a defined contribution plan covering a majority of all U.S. employees of Sonoco Products Company (the “Company”) who are immediately eligible to participate with at least 30 days of service. The Company is a major global manufacturer of paperboard-based and other industrial and consumer packaging products. The Company is a South Carolina corporation founded in Hartsville, South Carolina in 1899. The following description of the Plan is provided for general information purposes only. Participants should refer to the Plan document or the Summary Plan Description, not included herein, for a more complete description of the Plan and its provisions. The Plan is subject to the applicable provisions of the Employee Retirement Income and Security Act of 1974 (“ERISA”), as amended. |
||||
| Contributions | ||||
| Participants may elect to defer up to 20% of gross pay through payroll deductions. Contributions may be pre-tax, after-tax or a combination thereof. The maximum annual pre-tax contribution for any participant is $12,000 and $11,000 for 2003 and 2002, respectively. Participants over age 50 may contribute additional pre-tax contributions to the Plan, up to a maximum of $2,000 and $1,000 for 2003 and 2002, respectively, subject to certain catch-up rules as defined under the Internal Revenue Code. Total annual contributions, including employer matching contributions are limited to $40,000 or 10% of gross pay in 2003 and 2002, whichever is less. The Company provides employer matching contributions of Company common stock or cash in amounts determined annually by the Company’s Board of Directors (the “Board”). The Company may elect to provide additional contributions at the discretion of its Board. Under the Plan, participants may elect to have their account balances invested in 1% increments in eight index funds, a Company stock fund, or a stable value fund. Once a participant’s total account balance has been established and certain criteria are met, the participant can transfer funds into a Self-Managed Account as well. | ||||
| The Company matching contributions for periods subsequent to January 1, 2002 are equal to 100% on the first 3% of employee before-tax contributions, 50% on the next 2% of employee before-tax contributions and no match on after-tax contributions. Participants have the option to continue to reinvest Sonoco Stock Fund dividends in the Savings Plan or to receive these dividends in cash. | ||||
| Vesting | ||||
| The majority of participants are immediately vested in both their basic and rollover contributions and employer contributions, plus actual earnings thereon. However, at certain union locations, participants vest in employer matching and discretionary contributions after two to three years of service and five years of service, respectively. Net appreciation or depreciation of investments and investment earnings of each fund are allocated to participant accounts in proportion to each participant’s account balance within each fund. | ||||
| Payment of Benefits | ||||
| The Plan provides for benefits payable upon retirement, death, total and permanent disability or termination. Benefits are distributed through lump-sum payments in cash or Company common stock, in equal annual installments of cash or through quarterly distributions in an amount not less than $1,000. The participant may also elect to leave the funds in the Plan until age 70-1/2 if their balance is greater than $5,000. | ||||
4
Sonoco Savings Plan
Notes to Financial Statements
December 31, 2003 and 2002
| Participant Loans | ||||
| Participants may borrow from their account balances. The minimum amount of any loan is $1,000 and the maximum is $50,000 or 50% of a participant’s available balance (total vested balance less any outstanding loan balances taken in the previous twelve months), whichever is less. Loans are repaid through payroll deductions over a period of no more than five years for a personal loan or twenty years for a residential loan. Interest is charged at a fixed rate for the full term of the loan. The rate is based on the prime rate at the end of the fiscal quarter prior to loan origination plus 1% (5.0% at December 31, 2003). | ||||
| Risks and Uncertainties | ||||
| The Plan provides for various mutual fund investment options in stocks, bonds and fixed income securities. Investments are exposed to various risks, such as interest rate, market and credit risk. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term would materially affect participants’ account balances and the amounts reported in the Statements of Net Assets Available for Benefits and the Statements of Changes in Net Assets Available for Benefits. | ||||
| Forfeitures | ||||
| Forfeitures of account balances are used to reduce future employer contributions. During 2003, $477,930 in forfeitures was used to reduce employer contributions. At December 31, 2003, forfeited nonvested accounts totaled approximately $161,291. | ||||
| 2. | Summary of Significant Accounting Policies | |||
| Basis of Accounting | ||||
| The financial statements of the Plan are prepared under the accrual method of accounting. | ||||
| Contributions | ||||
| Contributions from the Company are recorded in the year and in the amount authorized by the Board. The contribution receivable from the Company represents amounts authorized at year-end, but not yet received by the Plan. Contributions from employees of the Company are recorded in the year in which the employee contributions are withheld. All contributions from the Company are in the form of Sonoco Products Company common stock or cash payments. All employee and employer contributions are participant directed. | ||||
| Investment Valuation and Income Recognition | ||||
| Investments of the Plan are primarily stated at fair value, excluding certain fully benefit responsive insurance contracts that are stated at contract value. The fair values of the mutual funds are valued at quoted market prices which represent the net asset value of shares held by the Plan at year-end. The fair value of debt securities is based on quoted market prices for these securities. Fair value of the Sonoco Products Company common stock is determined by the closing market price per share on the last business day of the year. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. | ||||
| The Plan presents, in the accompanying Statements of Changes in Net Assets Available for Benefits, the net appreciation (depreciation) in the fair value of its investments, which consists of the realized gains or losses and the unrealized appreciation (depreciation) on those investments. | ||||
5
Sonoco Savings Plan
Notes to Financial Statements
December 31, 2003 and 2002
| Use of Estimates | ||||
| The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Plan to make significant estimates and assumptions that affect the reported amounts of net assets at the date of the financial statements and the reported amounts of changes in net assets available for plan benefits during the reporting periods. Actual results could differ from those estimates. | ||||
| Payment of Benefits | ||||
| Benefits are recorded when paid. | ||||
| Administrative Expenses | ||||
| All trust and custodial expenses and investment management fees are paid by the Plan. These expenses are deducted from the investment returns on the Statements of Changes in Net Assets Available for Benefits. | ||||
| Reclassifications | ||||
| Certain prior year amounts have been reclassified to conform to current year presentation. | ||||
| 3. | Investments | |||
| StateStreet Global Advisors (“SSGA”) served as the trustee of the Plan in both 2003 and 2002. SSGA managed investment options include the S&P 500 Index Fund, Bond Market Index Fund, Russell 2000 Index Fund, International Stock Index Fund, Conservative Strategic Balanced Fund, Moderate Strategic Balanced Fund, Aggressive Strategic Balanced Fund, S&P MidCap Fund, Self-Managed Account, Stable Value Fund and Sonoco Stock Fund. | ||||
| S&P 500 Index Fund | ||||
| The S&P 500 Index Fund invests in all 500 common stocks included in the S&P 500 Index. | ||||
| Bond Market Index Fund | ||||
| The Bond Market Index Fund invests primarily in government, corporate, mortgage-backed and asset-backed securities and is a diversified portfolio that is representative of the domestic bond market. | ||||
| Russell 2000 Index Fund | ||||
| The Russell 2000 Index Fund invests in the 2000 small cap stocks that comprise the Russell 2000 Index. | ||||
| International Stock Index Fund | ||||
| The International Stock Index Fund invests in the stocks in the Morgan Stanley Capital International EAFE Index, a compilation of international equities. | ||||
| Conservative Strategic Balanced Fund | ||||
| The Conservative Strategic Balanced Fund seeks to provide income from fixed income securities and some growth of principal from stock funds. The Fund’s risk profile is somewhat conservative due to an emphasis on bond holdings. | ||||
6
Sonoco Savings Plan
Notes to Financial Statements
December 31, 2003 and 2002
| Moderate Strategic Balanced Fund | ||||
| The Moderate Strategic Balanced Fund seeks to provide income from fixed income securities and growth of principal from stock funds. The funds risk profile is moderate due to the presence of well-diversified stock and bond holdings. | ||||
| Aggressive Strategic Balanced Fund | ||||
| The Aggressive Strategic Balanced Fund seeks to provide growth of principal from stock funds and some income from fixed income securities. The Fund’s risk profile is higher due to its emphasis on stock holdings. | ||||
| S&P MidCap Fund | ||||
| The S&P MidCap invests in all stocks in the S&P MidCap 400 Index in proportion to their weighting in the Index. | ||||
| Self-Managed Account | ||||
| The Self-Managed Account allows employees to invest in a wide variety of mutual funds. To invest in the Self-Managed Account, participants must transfer funds from other investment options. The initial investment must be at least $2,500 and the total amount in the Self-Managed Account cannot exceed 50% of the participant’s vested account balance. | ||||
| Stable Value Fund | ||||
| The Stable Value Fund invests primarily in guaranteed investment contracts and fully benefit responsive synthetic investment contracts, which are supported by underlying assets owned by the Plan. Assets underlying the synthetic investment contracts include government securities, private and public mortgage-backed securities, investment grade corporate obligations and cash equivalents held for liquidity purposes. These synthetic investment contracts are credited with earnings on the underlying investments and charged for benefit withdrawals and administrative expenses. The guaranteed investment contracts are included in the financial statements of the Plan at contract value as reported to the Plan by GE Life and Annuity Assurance Co., Travelers Life and Annuity Co. and Principal Life Insurance Co. Contract value represents contributions made under the contract, plus earnings, less benefit withdrawals and administrative expenses. | ||||
| There are no reserves against contract value for credit risk of the contract issuer or otherwise. The average yields were approximately 4.48% at December 31, 2003. The crediting interest rates were 4.17% at December 31, 2003. The crediting interest rate is based on a formula agreed upon with the issuer, with no guaranteed minimum crediting interest rate provided. | ||||
7
Sonoco Savings Plan
Notes to Financial Statements
December 31, 2003 and 2002
| Sonoco Stock Fund | ||||
| Employees may also elect to invest in the Sonoco Stock Fund that consists solely of investments in Company common stock and cash equivalents held for liquidity purposes. | ||||
| The following individual investments represent 5% or more of the Plan’s net assets at December 31 of one or both years: | ||||
| (in thousands of dollars) | 2003 | 2002 | ||||||
Investments at fair value |
||||||||
Sonoco Products Company Common Stock (3,133,189
and 3,625,361 shares, respectively) |
$ | 77,139 | $ | 83,130 | ||||
State Street
Global Advisors S&P 500 Index Fund
(549,159 and 573,462 shares, respectively) |
109,487 | 88,852 | ||||||
State Street Global Advisors Bond Market Index Fund
(1,617,603 shares) |
— | 23,973 | ||||||
State Street Global Advisors Russell 2000 Index Fund
(1,690,580 shares) |
29,572 | — | ||||||
| During 2003 and 2002, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value by $45,733 and $(44,777) as follows: |
| (in thousands of dollars) | 2003 | 2002 | ||||||
Mutual funds |
$ | 40,418 | $ | (31,204 | ) | |||
Common stock |
5,315 | (13,573 | ) | |||||
| $ | 45,733 | $ | (44,777 | ) | ||||
| 4. | Related Party Transactions | |||
| Certain Plan investments are shares of mutual funds or money market funds managed by StateStreet Global Advisors and StateStreet Bank & Trust Company (“StateStreet”). StateStreet is the trustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest transactions. | ||||
| 5. | Tax Status | |||
| The Internal Revenue Service (“IRS”) has determined and informed the Company by a letter dated June 30, 2003, that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (“IRC”). The Plan Administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. Accordingly, no provision for income taxes has been included in the Plan’s financial statements. | ||||
8
Sonoco Savings Plan
Notes to Financial Statements
December 31, 2003 and 2002
| 6. | Contributions | |||
| For the fiscal years ended December 31, 2003 and 2002, employer contributions made entirely in Company common stock under the Plan were approximately $1,100,000 and $1,200,000, respectively. All other employer contributions were made in cash. | ||||
| 7. | Asset Transfers | |||
| The Company acquired Hayes Manufacturing Group, Inc., Phoenix Packaging Corporation, U.S. Paper Mills Corporation, and a paper mill located in Hutchinson, Kansas during 2001. Benefit plans related to the acquired companies were merged into the Plan during 2002. | ||||
| Effective December 22, 2003, the Company sold its High Density Film Products Division and transferred the investments to another qualified plan. | ||||
| 8. | Plan Termination | |||
| Although it has not expressed any intention to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions set forth in ERISA. | ||||
| 9. | Fair Value of Financial Instruments | |||
| The fair value of investment contracts included the Stable Value Fund carried at contract value totaling $147,549,000 and $151,941,000 at December 31, 2003 and 2002 was $154,191,000 and $159,345,000, respectively. Fair values of these investment contracts are estimated based on discounted future cash flows using interest rates at December 31, 2003. | ||||
9
Sonoco Savings Plan
| December 31, 2003 | Schedule I |
(in thousands of dollars)
| Rate of | Maturity | |||||||||
| Identity of Issue | Description of Investment | Interest | Date | Current Value | ||||||
Abbey National plc |
Corporate Bonds | 6.69% | 10/17/2005 | $ | 646 | |||||
American General Finance |
Corporate Bonds | 5.88% | 7/14/2006 | 655 | ||||||
Americredit Automobile |
Asset Backed Securities | 5.01% | 7/14/2008 | 1,248 | ||||||
Americredit Automobile |
Asset Backed Securities | 3.55% | 2/12/2009 | 1,533 | ||||||
Bank of America Corporation |
Corporate Bonds | 4.75% | 10/15/2006 | 533 | ||||||
Bank of America Corporation |
Corporate Bonds | 7.88% | 5/15/2005 | 656 | ||||||
Bear Stearns Commercial Mortgage Securities, Inc. |
Asset Backed Securities | 3.97% | 11/11/2035 | 1,218 | ||||||
Atlantic Richfield Company |
Corporate Bonds | 10.88% | 7/16/2005 | 1,185 | ||||||
Province of British Columbia |
Corporate Bonds | 4.63% | 10/3/2006 | 1,172 | ||||||
Boston Edison Company |
Asset Backed Securities | 6.62% | 3/15/2007 | 397 | ||||||
Salomon Smith Barney |
Asset Backed Securities | 0.00% | 3/15/2006 | 1,781 | ||||||
Citibank Credit Card Master Trust I |
Asset Backed Securities | 0.00% | 8/15/2006 | 993 | ||||||
Capital One Master Trust |
Asset Backed Securities | 5.30% | 6/15/2009 | 235 | ||||||
Capital One Secured Note Trust |
Asset Backed Securities | 3.85% | 8/15/2007 | 819 | ||||||
Credit Suisse First Boston Mortgage Securities |
Asset Backed Securities | 6.04% | 6/15/2034 | 375 | ||||||
Credit Suisse First Boston Mortgage Securities |
Asset Backed Securities | 5.26% | 12/15/2035 | 406 | ||||||
Credit Suisse First Boston Mortgage Securities |
Asset Backed Securities | 7.29% | 9/15/2009 | 923 | ||||||
CWL 2003-5 AF4 |
Asset Backed Securities | 4.91% | 8/25/2032 | 3,125 | ||||||
DLJ Commercial Mortgage Corp. |
Asset Backed Securities | 6.41% | 2/15/2008 | 884 | ||||||
DLJ Commercial Mortgage Corp. |
Asset Backed Securities | 7.45% | 6/10/2033 | 775 | ||||||
A/S Eksportfinans |
Corporate Bonds | 5.75% | 6/6/2006 | 304 | ||||||
Federal Home Loan Mortgage Corporation |
Asset Backed Securities | 7.00% | 3/15/2008 | 2,123 | ||||||
Federal Home Loan Mortgage Corporation |
Asset Backed Securities | 7.00% | 6/15/2010 | 249 | ||||||
Federal Home Loan Mortgage Corporation. |
Asset Backed Securities | 6.00% | 9/15/2031 | 981 | ||||||
Federal Home Loan Mortgage Corporation |
Asset Backed Securities | 6.25% | 11/15/2022 | 556 | ||||||
Federal Home Loan Mortgage Corporation |
Asset Backed Securities | 6.25% | 1/15/2023 | 225 | ||||||
Federal Home Loan Mortgage Corporation |
Asset Backed Securities | 6.50% | 3/15/2023 | 279 | ||||||
Federal Home Loan Mortgage Corporation |
Asset Backed Securities | 6.00% | 5/15/2031 | 464 | ||||||
Federal Home Loan Mortgage Corporation |
Asset Backed Securities | 6.00% | 6/15/2031 | 278 | ||||||
10
Sonoco Savings Plan
| December 31, 2003 | Schedule I |
(in thousands of dollars)
| Rate of | Maturity | |||||||||
| Identity of Issue | Description of Investment | Interest | Date | Current Value | ||||||
Federal Home Loan Mortgage Corporation |
Asset Backed Securities | 6.00% | 9/15/2031 | 961 | ||||||
Federal Home Loan Mortgage Corporation |
Federal Agency Bonds | 7.00% | 7/15/2005 | 6,229 | ||||||
Federal Home Loan Mortgage Corporation |
Federal Agency Bonds | 6.25% | 7/15/2004 | 2,638 | ||||||
Federal National Mortgage Association |
Federal Agency Bonds | 7.00% | 7/15/2005 | 6,158 | ||||||
Federal National Mortgage Association |
Asset Backed Securities | 5.50% | 2/15/2006 | 4,527 | ||||||
Federal National Mortgage Association |
Asset Backed Securities | 5.50% | 1/25/2023 | 209 | ||||||
Federal National Mortgage Association |
Asset Backed Securities | 7.00% | 6/25/2023 | 234 | ||||||
Federal National Mortgage Association |
Asset Backed Securities | 6.00% | 10/25/2022 | 727 | ||||||
Federal National Mortgage Association |
Asset Backed Securities | 6.50% | 7/15/2005 | 1,278 | ||||||
Federal National Mortgage Association |
Asset Backed Securities | 6.50% | 2/15/2006 | 228 | ||||||
Federal National Mortgage Association Ser 2002-81-PU |
Asset Backed Securities | 4.50% | 5/25/2020 | 4,101 | ||||||
Federal National Mortgage Association Ser 2003-17-QR |
Asset Backed Securities | 4.50% | 11/25/2025 | 6,992 | ||||||
Ford Credit Auto Owners Trust |
Asset Backed Securities | 4.14% | 12/15/2005 | 114 | ||||||
GE Capital Commercial Mortgage Corporation |
Asset Backed Securities | 6.03% | 8/11/2033 | 1,062 | ||||||
GE COML Mortgage Corporation 2003-CL-A1 |
Asset Backed Securities | 3.09% | 1/10/2038 | 945 | ||||||
Household Private Label Credit Card |
Asset Backed Securities | 4.95% | 6/16/2008 | 972 | ||||||
Household Private Label Credit Card |
Asset Backed Securities | 5.50% | 1/18/2011 | 324 | ||||||
International Bank for Reconstruction and
Development |
Federal Agency Bonds | 5.00% | 3/28/2006 | 1,077 | ||||||
J.P. Morgan Chase & Company |
Corporate Bonds | 5.63% | 8/15/2006 | 323 | ||||||
J.P. Morgan Chase & Company |
Corporate Bonds | 5.35% | 3/1/2007 | 250 | ||||||
J.P. Morgan Chase & Company |
Asset Backed Securities | 7.11% | 8/15/2032 | 306 | ||||||
LB Commercial Conduit Mortgage Trust |
Asset Backed Securities | 6.78% | 4/15/2009 | 906 | ||||||
MBNA Master Credit Card Trust |
Asset Backed Securities | 6.90% | 1/15/2008 | 2,163 | ||||||
MBNA Credit Card Master Trust II |
Asset Backed Securities | 4.95% | 6/15/2009 | 1,223 | ||||||
Merrill Lynch & Company Medium Term Notes |
Corporate Bonds | 6.13% | 5/16/2006 | 109 | ||||||
Merrill Lynch & Company Medium Term Notes |
Corporate Bonds | 6.15% | 1/26/2006 | 552 | ||||||
Federal National Mortgage Association |
Asset Backed Securities | 4.49% | 4/20/2006 | 85 | ||||||
Morgan Stanley Dean Witter |
Corporate Bonds | 5.80% | 4/1/2007 | 263 | ||||||
Morgan Stanley Dean Witter |
Corporate Bonds | 7.75% | 6/15/2005 | 561 | ||||||
11
Sonoco Savings Plan
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)
| December 31, 2003 | Schedule I |
(in thousands of dollars)
| Rate of | Maturity | |||||||||
| Identity of Issue | Description of Investment | Interest | Date | Current Value | ||||||
Bank One Corporation |
Corporate Bonds | 6.50% | 2/1/2006 | 588 | ||||||
Bank One Corporation |
Corporate Bonds | 7.63% | 8/1/2005 | 384 | ||||||
Ontario Province Canada |
Corporate Bonds | 6.00% | 2/21/2006 | 2,695 | ||||||
Prudential Home Mortgage Securities Co. |
Asset Backed Securities | 6.50% | 12/25/2008 | 37 | ||||||
Rio Tinto Finance United States |
Corporate Bonds | 5.75% | 7/3/2006 | 690 | ||||||
Salomon Brothers Mortgage Securities |
Asset Backed Securities | 7.30% | 7/18/2033 | 832 | ||||||
Sears Credit Account Master Trust |
Asset Backed Securities | 6.75% | 3/15/2006 | 204 | ||||||
Sears Credit Account Master Trust |
Asset Backed Securities | 5.25% | 9/16/2009 | 1,697 | ||||||
U.S. Treasury Bonds |
U.S. Government Bonds | 11.75% | 2/15/2010 | 2,953 | ||||||
U.S. Treasury Notes |
U.S. Government Bonds | 6.50% | 10/15/2006 | 10,937 | ||||||
Texas Utilities Company |
Corporate Bonds | 6.38% | 10/1/2004 | 998 | ||||||
Wells Fargo Bank San Francisco |
Corporate Bonds | 7.80% | 6/15/2010 | 1,087 | ||||||
AIG Financial Products Corp. |
Global Wrap | 4.54% | (1,155 | ) | ||||||
J.P. Morgan Chase Bank |
Global Wrap | 4.54% | (1,155 | ) | ||||||
Monumental Life Insurance Company |
Global Wrap | 4.54% | (1,155 | ) | ||||||
Westdeutsche Landesbank |
Global Wrap | 4.54% | (1,155 | ) | ||||||
StateStreet Global Advisors Yield Enhanced STIF* |
STIF | 1.20% | 7,597 | |||||||
GE Life and Annuity Assurance Co. |
Guaranteed Investment Contract | 5.95% | 2/6/2004 | 3,979 | ||||||
Principal Life Insurance Co. |
Guaranteed Investment Contract | 3.00% | 9/28/2007 | 6,142 | ||||||
Principal Life Insurance Co. |
Guaranteed Investment Contract | 3.85% | 3/15/2007 | 1,716 | ||||||
Travelers Life and Annuity Co. |
Guaranteed Investment Contract | 3.66% | 6/15/2007 | 5,189 | ||||||
StateStreet Bank and Trust Company* |
Commingled Mortgage Backed | |||||||||
| Index Fund (CMBS) | 15,876 | |||||||||
StateStreet Bank and Trust Company* |
Mortgage Fund | 18,032 | ||||||||
StateStreet Global Advisors* |
Bond Market Index Fund | 21,092 | ||||||||
StateStreet Global Advisors* |
S&P 500 Index Fund | 109,487 | ||||||||
StateStreet Global Advisors* |
Russell 2000 Index Fund | 29,572 | ||||||||
StateStreet Global Advisors* |
International Stock Index Fund | 7,425 | ||||||||
12
Sonoco Savings Plan
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)
| December 31, 2003 | Schedule I |
(in thousands of dollars)
| Rate of | Maturity | |||||||||
| Identity of Issue | Description of Investment | Interest | Date | Current Value | ||||||
StateStreet Global Advisors* |
Conservative Strategic Balanced Fund | 1,006 | ||||||||
StateStreet Global Advisors* |
Moderate Strategic Balanced Fund | 1,706 | ||||||||
StateStreet Global Advisors* |
Aggressive Strategic Balanced Fund | 1,658 | ||||||||
StateStreet Global Advisors* |
S&P MidCap Fund | 8,013 | ||||||||
StateStreet Global Advisors* |
Money Market Fund** | 389 | ||||||||
Vanguard Investments Corporation |
Vanguard Growth Index Fund** | 107 | ||||||||
Clipper |
Clipper Fund** | 74 | ||||||||
Vanguard Investments Corporation |
Vanguard Bond Index Total Market Fund** | 54 | ||||||||
Heartland |
Heartland Group Value Plus Fund** | 54 | ||||||||
Heartland |
Heartland Group Value Income Fund** | 53 | ||||||||
White Oak |
White Oak Growth Stock Fund** | 52 | ||||||||
Boston Partners |
Boston Partners Small Cap Value II Fund** | 51 | ||||||||
Janus Capital Group, Inc. |
Janus Twenty Fund** | 47 | ||||||||
Janus Capital Group, Inc. |
Janus Growth & Income Fund** | 40 | ||||||||
Meridian |
Meridian Value Fund** | 40 | ||||||||
Price Health Sciences |
T Rowe Price Health Sciences Fund** | 40 | ||||||||
Dodge and Cox |
Dodge and Cox Stock Fund** | 40 | ||||||||
StateStreet Brokerage Services, Inc.* |
Other Mutual Funds** | 1,486 | ||||||||
Sonoco Products Company* |
Common stock, 3,133,189 shares original cost of $69,280,355 | 77,139 | ||||||||
StateStreet Global Advisors* |
Short-term Investment Fund - 1,116,686 shares | 1,117 | ||||||||
| 1/2/2004 to | ||||||||||
Employee loans receivable* |
Participant loans | 5.00% - 11.50% | 3/24/2025 | 17,543 | ||||||
| $ | 425,833 | |||||||||
| * | Party in interest |
| ** | Individual assets included within the Self-Managed Account |
13
Sonoco Savings Plan
Schedule H, Line 4j – Schedule of Reportable Transactions
December 31, 2003
| (in thousands of dollars) | ||||||||||||||||||||||||||||||
| Current Value | ||||||||||||||||||||||||||||||
| of Asset on | ||||||||||||||||||||||||||||||
| Purchase | Selling | Cost of | Transaction | Gain/ | ||||||||||||||||||||||||||
| Type and Description | Transactions | Price | Price | Asset | Date | Loss | ||||||||||||||||||||||||
| I. | Single transactions in excess of 5% of plan assets: | |||||||||||||||||||||||||||||
| None | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
| II. | Series of transactions with respect to any plan asset other than securities in excess of 5% of plan assets: | |||||||||||||||||||||||||||||
| None | ||||||||||||||||||||||||||||||
| III. | Series of transactions in excess of 5%: | |||||||||||||||||||||||||||||
| State Street Global Advisors* | ||||||||||||||||||||||||||||||
Stable
Value Fund |
161 | 119,659 | — | — | 119,659 | — | ||||||||||||||||||||||||
S&P 500 Index Fund |
107 | 16,573 | — | — | 16,573 | — | ||||||||||||||||||||||||
Short-Term Investment Fund |
121 | 24,559 | — | — | 24,559 | — | ||||||||||||||||||||||||
Stable Value Fund |
187 | — | 117,260 | 117,260 | 117,260 | — | ||||||||||||||||||||||||
S&P 500 Index Fund |
147 | — | 16,982 | 15,394 | 16,982 | 1,588 | ||||||||||||||||||||||||
Short-Term Investment Fund |
124 | — | 24,380 | 24,380 | 24,380 | — | ||||||||||||||||||||||||
| Sonoco Products Company* | ||||||||||||||||||||||||||||||
Sonoco Stock Fund |
138 | 28,486 | — | — | 28,486 | — | ||||||||||||||||||||||||
Sonoco Stock Fund |
216 | — | 37,084 | 37,326 | 37,084 | (242 | ) | |||||||||||||||||||||||
| Participants* | — | |||||||||||||||||||||||||||||
Participant loan fund |
200 | 7,923 | — | — | 7,923 | — | ||||||||||||||||||||||||
Participant loan fund |
162 | — | 14,948 | 14,948 | 14,948 | — | ||||||||||||||||||||||||
| IV. | Any transaction with respect to securities with a person if any prior or subsequent transactions with such person exceeded 5%: | |||||||||||||||||||||||||||||
| None | ||||||||||||||||||||||||||||||
* Party-in-interest
14
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this Annual Report to be signed on its behalf by the undersigned hereunto duly authorized.
| SONOCO SAVINGS PLAN | ||||
| By: | Sonoco Products Company as Plan | |||
| Administrator | ||||
June 28,
2004 |
By | /s/ Harris E. DeLoach, Jr.
|
||
Date
|
Harris E. DeLoach, Jr. | |||
| President and Chief Executive Officer |
EXHIBIT INDEX
| Exhibit | ||
| Number |
Description |
|
23-1
|
Consent of Independent Registered Accounting Firm to Incorporation by Reference of Independent Registered Accounting Firm’s Report with Respect to Form 11-K for the Sonoco Savings Plan | |
32
|
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and 17 C.F.R. 240.13a-14(b) |