Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 16, 2015 | Jun. 30, 2014 |
Document and Entity Information | |||
Entity Registrant Name | BALL CORP | ||
Entity Central Index Key | 9389 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $8.70 | ||
Entity Common Stock, Shares Outstanding | 137,343,010 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Earnings | |||
Net sales | $8,570 | $8,468.10 | $8,735.70 |
Costs and expenses | |||
Cost of sales (excluding depreciation and amortization) | -6,903.50 | -6,875.40 | -7,174 |
Depreciation and amortization | -280.9 | -299.9 | -282.9 |
Selling, general and administrative | -466.5 | -418.6 | -385.5 |
Business consolidation and other activities | -80.5 | -78.8 | -102.8 |
Total costs and expenses | -7,731.40 | -7,672.70 | -7,945.20 |
Earnings before interest and taxes | 838.6 | 795.4 | 790.5 |
Interest expense | -159.9 | -183.8 | -179.8 |
Debt refinancing costs | -33.1 | -28 | -15.1 |
Total interest expense | -193 | -211.8 | -194.9 |
Earnings before taxes | 645.6 | 583.6 | 595.6 |
Tax provision | -149.9 | -149.6 | -172.2 |
Equity in results of affiliates, net of tax | 2.3 | 0.6 | -1.3 |
Net earnings from continuing operations | 498 | 434.6 | 422.1 |
Discontinued operations, net of tax | 0.4 | -2.8 | |
Net earnings | 498 | 435 | 419.3 |
Less net earnings attributable to noncontrolling interests | -28 | -28.2 | -23 |
Net earnings attributable to Ball Corporation | 470 | 406.8 | 396.3 |
Amounts attributable to Ball Corporation: | |||
Continuing operations | 470 | 406.4 | 399.1 |
Discontinued operations | 0.4 | -2.8 | |
Net earnings | $470 | $406.80 | $396.30 |
Earnings per share: | |||
Basic - continuing operations (in dollars per share) | $3.39 | $2.79 | $2.58 |
Basic - discontinued operations (in dollars per share) | ($0.02) | ||
Total basic earnings per share (in dollars per share) | $3.39 | $2.79 | $2.56 |
Diluted - continuing operations (in dollars per share) | $3.30 | $2.73 | $2.52 |
Diluted - discontinued operations (in dollars per share) | ($0.02) | ||
Total diluted earnings per share (in dollars per share) | $3.30 | $2.73 | $2.50 |
Weighted average shares outstanding (000s): | |||
Basic (in shares) | 138,508 | 145,943 | 154,648 |
Diluted (in shares) | 142,430 | 149,223 | 158,084 |
Cash dividends declared and paid, per share (in dollars per share) | $0.52 | $0.52 | $0.40 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Earnings (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Consolidated Statements of Comprehensive Earnings | ||||||
Net earnings | $498 | $435 | $419.30 | |||
Other comprehensive earnings: | ||||||
Foreign currency translation adjustment | -199.6 | 62.4 | 32.9 | |||
Pension and other postretirement benefits | -108.1 | [1] | 79.7 | [1] | -72.3 | [1] |
Effective financial derivatives | 35 | [2] | -29.7 | [2] | 29.1 | [2] |
Total other comprehensive earnings | -272.7 | 112.4 | -10.3 | |||
Total comprehensive earnings | 225.3 | 547.4 | 409 | |||
Less comprehensive earnings attributable to noncontrolling interests | -27.4 | -28.4 | -22.7 | |||
Comprehensive earnings attributable to Ball Corporation | $197.90 | $519 | $386.30 | |||
[1] | Net of tax (expense) benefit of $69.4 million, $(65.6) million and $40.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
[2] | Net of tax (expense) benefit of $4.0 million, $2.5 million and $(22.3) million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Earnings (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Earnings | |||
Pension and other postretirement benefits, tax (expense) benefit | $69.40 | ($65.60) | $40.10 |
Effective financial derivatives, tax (expense) benefit | $4 | $2.50 | ($22.30) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current assets | ||||
Cash and cash equivalents | $191.40 | $416 | $174.10 | $165.80 |
Receivables, net | 957.1 | 859.4 | ||
Inventories, net | 1,016.70 | 1,028.30 | ||
Deferred taxes and other current assets | 148.3 | 167.2 | 196 | |
Total current assets | 2,313.50 | 2,470.90 | ||
Non-current assets | ||||
Property, plant and equipment, net | 2,430.70 | 2,372.30 | ||
Goodwill | 2,254.50 | 2,399.70 | 2,354.80 | |
Intangibles and other assets, net | 572.3 | 577.5 | 544.6 | |
Total assets | 7,571 | 7,820.40 | 7,520.70 | |
Current liabilities | ||||
Short-term debt and current portion of long-term debt | 175.1 | 422.6 | ||
Accounts payable | 1,340 | 998.8 | ||
Accrued employee costs | 269.9 | 241.3 | ||
Other current liabilities | 221.8 | 264.7 | ||
Total current liabilities | 2,006.80 | 1,927.40 | ||
Non-current liabilities | ||||
Long-term debt | 2,993.80 | 3,182.50 | ||
Employee benefit obligations | 1,178.30 | 1,033 | ||
Deferred taxes and other liabilities | 152.5 | 261.5 | 197.3 | |
Total liabilities | 6,331.40 | 6,404.40 | 6,206.50 | |
Shareholders' equity | ||||
Common stock (331,618,306 shares issued - 2014; 330,240,265 shares issued - 2013) | 1,131.30 | 1,078.40 | ||
Retained earnings | 4,346.90 | 3,947.70 | 3,614.70 | |
Accumulated other comprehensive earnings (loss) | -522.1 | -249.9 | -362.1 | |
Treasury stock, at cost (194,652,028 shares - 2014; 188,122,102 shares - 2013) | -3,923 | -3,551.60 | ||
Total Ball Corporation shareholders' equity | 1,033.10 | 1,224.60 | ||
Noncontrolling interests | 206.5 | 191.4 | ||
Total shareholders' equity | 1,239.60 | 1,416 | 1,314.20 | 1,402.20 |
Total liabilities and shareholders' equity | $7,571 | $7,820.40 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2014 | Dec. 31, 2013 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, shares issued | 331,618,306 | 330,240,265 |
Treasury stock, shares | 194,652,028 | 188,122,102 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | |||
Net earnings | $498 | $435 | $419.30 |
Discontinued operations, net of tax | -0.4 | 2.8 | |
Adjustments to reconcile net earnings to cash provided by (used in) continuing operating activities: | |||
Depreciation and amortization | 280.9 | 299.9 | 282.9 |
Business consolidation and other activities | 80.5 | 78.8 | 102.8 |
Deferred tax provision | 11.9 | -1.6 | 21.2 |
Other, net | -26.7 | -34.1 | -25.3 |
Working capital changes, excluding effects of acquisitions: | |||
Receivables | -152.3 | 80.2 | 0.6 |
Inventories | -23.8 | 21.4 | 29.1 |
Other current assets | -20.6 | 4.3 | 1.5 |
Accounts payable | 355.3 | 50.9 | 55.9 |
Accrued employee costs | 40.1 | -36 | 10.5 |
Other current liabilities | -32.1 | -55 | -55.8 |
Other, net | 1.3 | -2.1 | 12.8 |
Cash provided by (used in) continuing operating activities | 1,012.50 | 841.3 | 858.3 |
Cash provided by (used in) discontinued operating activities | -2.3 | -5.1 | |
Total cash provided by (used in) operating activities | 1,012.50 | 839 | 853.2 |
Cash Flows from Investing Activities | |||
Capital expenditures | -390.8 | -378.3 | -305 |
Business acquisitions, net of cash acquired | -14.2 | -71.2 | |
Other, net | -0.6 | 13.4 | 20.2 |
Cash provided by (used in) investing activities | -391.4 | -379.1 | -356 |
Cash Flows from Financing Activities | |||
Long-term borrowings | 411.9 | 1,643.10 | 1,486.40 |
Repayments of long-term borrowings | -897.8 | -1,294.90 | -1,071.60 |
Net change in short-term borrowings | 68.2 | -57.6 | -337 |
Proceeds from issuances of common stock | 37.2 | 32.9 | 53.1 |
Acquisitions of treasury stock | -397.3 | -431.7 | -547.2 |
Common dividends | -72.7 | -75.2 | -61.8 |
Other, net | 5.2 | -20.6 | -8.8 |
Cash provided by (used in) financing activities | -845.3 | -204 | -486.9 |
Effect of exchange rate changes on cash | -0.4 | -14 | -2 |
Change in cash and cash equivalents | -224.6 | 241.9 | 8.3 |
Cash and cash equivalents - beginning of year | 416 | 174.1 | 165.8 |
Cash and cash equivalents - end of year | $191.40 | $416 | $174.10 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Common Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total |
In Millions, except Share data, unless otherwise specified | ||||||
Balance at beginning at Dec. 31, 2010 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Prior period revision for deferred taxes (See Note 1) | $41.10 | ($16.90) | $24.20 | |||
Balance at end at Dec. 31, 2011 (As Previously reported) | 941.7 | -2,615.70 | 3,228.30 | -335.2 | 158.9 | 1,378 |
Balance at end at Dec. 31, 2011 | 941.7 | -2,615.70 | 3,269.40 | -352.1 | 158.9 | 1,402.20 |
Balance (in shares) at Dec. 31, 2011 (As Previously reported) | 327,004,000 | -166,688,000 | ||||
Balance (in shares) at Dec. 31, 2011 | 327,004,000 | -166,688,000 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings at Jan. 01, 2012 (As Previously reported) | 426.5 | |||||
Net earnings | 396.3 | 23 | 419.3 | |||
Other comprehensive earnings, net of tax | -10 | -0.3 | -10.3 | |||
Common dividends, net of tax benefits | -60.3 | -60.3 | ||||
Treasury stock purchases | -547.1 | -547.1 | ||||
Treasury stock purchases (in shares) | -13,148,000 | |||||
Treasury shares reissued | 22.7 | 22.7 | ||||
Treasury shares reissued (in shares) | 551,000 | |||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | 63.3 | 63.3 | ||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged (in shares) | 2,011,000 | |||||
Tax benefit on option exercises | 21.3 | 21.3 | ||||
Dividends paid to noncontrolling interests | -7.6 | -7.6 | ||||
Other activity | 9.3 | 1.4 | 10.7 | |||
Balance at end at Dec. 31, 2012 (As Previously reported) | 1,290 | |||||
Balance at end at Dec. 31, 2012 | 1,026.30 | -3,140.10 | 3,614.70 | -362.1 | 175.4 | 1,314.20 |
Balance (in shares) at Dec. 31, 2012 | 329,015,000 | -179,285,000 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings at Jan. 01, 2013 (As Previously reported) | 435 | |||||
Net earnings | 406.8 | 28.2 | 435 | |||
Other comprehensive earnings, net of tax | 112.2 | 0.2 | 112.4 | |||
Common dividends, net of tax benefits | -73.8 | -73.8 | ||||
Treasury stock purchases | -433.9 | -433.9 | ||||
Treasury stock purchases (in shares) | -9,322,000 | |||||
Treasury shares reissued | 22.4 | 22.4 | ||||
Treasury shares reissued (in shares) | 485,000 | |||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | 40.2 | 40.2 | ||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged (in shares) | 1,225,000 | |||||
Tax benefit on option exercises | 11.9 | 11.9 | ||||
Dividends paid to noncontrolling interests | -12.9 | -12.9 | ||||
Other activity | 0.5 | 0.5 | ||||
Balance at end at Dec. 31, 2013 (As Previously reported) | 1,391.30 | |||||
Balance at end at Dec. 31, 2013 | 1,078.40 | -3,551.60 | 3,947.70 | -249.9 | 191.4 | 1,416 |
Balance (in shares) at Dec. 31, 2013 | 330,240,000 | -188,122,000 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 470 | 28 | 498 | |||
Other comprehensive earnings, net of tax | -272.2 | -0.5 | -272.7 | |||
Common dividends, net of tax benefits | -70.8 | -70.8 | ||||
Treasury stock purchases | -397.3 | -397.3 | ||||
Treasury stock purchases (in shares) | -6,911,000 | |||||
Treasury shares reissued | 22.8 | 22.8 | ||||
Treasury shares reissued (in shares) | 381,000 | |||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | 35.4 | 35.4 | ||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged (in shares) | 1,378,000 | |||||
Tax benefit on option exercises | 17.5 | 17.5 | ||||
Dividends paid to noncontrolling interests | -12.2 | -12.2 | ||||
Other activity | 3.1 | -0.2 | 2.9 | |||
Balance at end at Dec. 31, 2014 | $1,131.30 | ($3,923) | $4,346.90 | ($522.10) | $206.50 | $1,239.60 |
Balance (in shares) at Dec. 31, 2014 | 331,618,000 | -194,652,000 |
Critical_and_Significant_Accou
Critical and Significant Accounting Policies | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Critical and Significant Accounting Policies | ||||||||||||||||||||
Critical and Significant Accounting Policies | 1. Critical and Significant Accounting Policies | |||||||||||||||||||
The preparation of Ball Corporation’s (collectively, Ball, the company, we or our) consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires Ball’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods. These estimates are based on historical experience and various assumptions believed to be reasonable under the circumstances. Ball’s management evaluates these estimates on an ongoing basis and adjusts or revises the estimates as circumstances change. As future events and their impacts cannot be determined with precision, actual results may differ from these estimates. In the opinion of management, the financial statements reflect all adjustments necessary to fairly present the results of the periods presented. | ||||||||||||||||||||
Critical Accounting Policies | ||||||||||||||||||||
The company considers certain accounting policies to be critical, as their application requires management’s judgment about the impacts of matters that are inherently uncertain. Detailed below is a discussion of the accounting policies the company considers critical to our consolidated financial statements. | ||||||||||||||||||||
Acquisitions | ||||||||||||||||||||
The company records acquisitions resulting in the consolidation of an enterprise using the purchase method of accounting. Under this method, the acquiring company records the assets acquired, including intangible assets that can be identified and named, and liabilities assumed based on their estimated fair values at the date of acquisition. The purchase price in excess of the fair value of the assets acquired and liabilities assumed is recorded as goodwill. If the assets acquired, net of liabilities assumed, are greater than the purchase price paid then a bargain purchase has occurred and the company will recognize the gain immediately in earnings. Among other sources of relevant information, the company uses independent appraisals and actuarial or other valuations to assist in determining the estimated fair values of the assets and liabilities. Various assumptions are used in the determination of these estimated fair values including discount rates, market and volume growth rates, product selling prices, production costs and other prospective financial information. Transaction costs associated with acquisitions are expensed as incurred and included in the business consolidation and other activities line of the consolidated statement of earnings. | ||||||||||||||||||||
For acquisitions where the company already owns an equity investment in the acquired company, the company will recognize in earnings, upon the completion of the acquisition, a gain or loss related to the company’s existing equity investment. This gain or loss is calculated based on the fair value of the equity investment as compared to the carrying value of the existing equity investment on the date of acquisition. | ||||||||||||||||||||
Exit and Other Closure Costs (Business Consolidation Costs) | ||||||||||||||||||||
The company estimates its liabilities for business closure activities by accumulating detailed estimates of costs and asset sale proceeds, if any, for each business consolidation initiative. This includes the estimated costs of employee severance, pension and related benefits; impairment of property and equipment and other assets, including estimates of net realizable value; accelerated depreciation; termination payments for contracts and leases; contractual obligations; and any other qualifying costs related to the exit plan. These estimated costs are grouped by specific projects within the overall exit plan and are then monitored on a monthly basis. Such disclosures represent management’s best estimates, but require assumptions about the plans that may change over time. Changes in estimates for individual locations and other matters are evaluated periodically to determine if a change in estimate is required for the overall restructuring plan. Subsequent changes to the original estimates are included in current earnings and identified as business consolidation gains or losses. | ||||||||||||||||||||
Recoverability of Goodwill and Intangible Assets | ||||||||||||||||||||
On an annual basis and at interim periods when circumstances require, the company tests the recoverability of its goodwill and indefinite-lived intangible assets. The company utilizes the two-step impairment analysis and has elected not to use the qualitative assessment or “step zero” approach. In the two-step impairment analysis, the company compares the carrying value of each identified reporting unit to its fair value. If the carrying value of the reporting unit is greater than its fair value, the second step is performed, where the implied fair value of goodwill is compared to its carrying value. The company recognizes an impairment charge for the amount by which the carrying amount of goodwill exceeds its implied fair value. The fair values of the reporting units are estimated using the net present value of discounted cash flows generated by each reporting unit and incorporate various assumptions related to discount and growth rates specific to the reporting unit to which they are applied. The company’s discounted cash flows are based upon reasonable and appropriate assumptions, which are weighted for their likely probability of occurrence, about the underlying business activities of the company’s reporting units. These reporting units have been identified based on the level at which discrete financial information is reviewed by segment management. When a business within a reporting unit is disposed of, goodwill is allocated to the gain or loss on disposition using the relative fair value methodology. During 2014, the company determined that the fair value of each of the reporting units of the company was significantly in excess of its respective carrying value. | ||||||||||||||||||||
Amortizable intangible assets are tested for impairment, when deemed necessary, based on undiscounted cash flows and, if impaired, are written down to fair value based on either discounted cash flows or appraised values. | ||||||||||||||||||||
Defined Benefit Pension Plans and Other Employee Benefits | ||||||||||||||||||||
The company has defined benefit plans that cover a significant portion of its employees. The company also has postretirement plans that provide certain medical benefits and life insurance for retirees and eligible dependents and, to a lesser extent, participates in multi-employer defined benefit plans for which Ball is not the sponsor. For the company sponsored plans, the relevant accounting guidance requires that management make certain assumptions relating to the long-term rate of return on plan assets, discount rates used to determine the present value of future obligations and expenses, salary inflation rates, health care cost trend rates, mortality rates and other assumptions. The company believes that the accounting estimates related to our pension and postretirement plans are critical accounting estimates, because they are highly susceptible to change from period to period based on the performance of plan assets, actuarial valuations, market conditions and contracted benefit changes. The selection of assumptions is based on historical trends and known economic and market conditions at the time of valuation, as well as independent studies of trends performed by the company’s actuaries. However, actual results may differ substantially from the estimates that were based on the critical assumptions. | ||||||||||||||||||||
The company recognizes the funded status of each defined benefit pension plan and other postretirement benefit plan in the consolidated balance sheet. Each overfunded plan is recognized as an asset, and each underfunded plan is recognized as a liability. Pension plan liabilities are revalued annually, or when an event occurs that requires remeasurement, based on updated assumptions and information about the individuals covered by the plan. For pension plans, accumulated actuarial gains and losses in excess of a 10 percent corridor and the prior service cost are amortized on a straight-line basis from the date recognized over the average remaining service period of active participants. For other postemployment benefits, the 10 percent corridor is not used. The majority of costs related to defined benefit and other postretirement plans are included in cost of sales; the remainder is included in selling, general and administrative expenses. | ||||||||||||||||||||
In addition to defined benefit and postretirement plans, the company maintains reserves for employee medical claims, up to our insurance stop-loss limit, and workers’ compensation claims. These are regularly evaluated and revised, as needed, based on a variety of information, including historical experience, actuarial estimates and current employee statistics. | ||||||||||||||||||||
Income Taxes | ||||||||||||||||||||
Deferred income taxes reflect the future tax consequences of differences between the tax bases of assets and liabilities and their financial reporting amounts at each balance sheet date, based upon enacted income tax laws and tax rates. Income tax expense or benefit is provided based on earnings reported in the financial statements. The provision for income tax expense or benefit differs from the amounts of income taxes currently payable because certain items of income and expense included in the consolidated financial statements are recognized in different time periods by taxing authorities. | ||||||||||||||||||||
Deferred tax assets, including operating loss, capital loss and tax credit carryforwards, are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that any portion of these tax attributes will not be realized. In addition, from time to time, management must assess the need to accrue or disclose uncertain tax positions for proposed adjustments from various federal, state and foreign tax authorities who regularly audit the company in the normal course of business. In making these assessments, management must often analyze complex tax laws of multiple jurisdictions, including many foreign jurisdictions. The accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The company records the related interest expense and penalties, if any, as tax expense in the tax provision. | ||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||
The company uses derivative financial instruments for the purpose of hedging commercial risk exposures to fluctuations in interest rates, currency exchange rates, raw material costs, inflation rates and common share prices. The company’s derivative instruments are recorded in the consolidated balance sheets at fair value. The company values each derivative financial instrument either by using a single valuation technique based on observable market inputs performed internally or by obtaining valuation information from a reliable and observable market source. For a derivative designated as a cash flow hedge, the effective portion of the derivative’s mark to fair value is initially recorded as a component of accumulated other comprehensive earnings and subsequently reclassified into earnings when the hedged item affects earnings, unless it is probable that the forecasted transaction will not occur. The ineffective portion of the mark to fair value associated with all hedges is recorded in earnings immediately. Derivatives that do not qualify for hedge accounting are marked to fair value with gains and losses immediately recorded in earnings. In the consolidated statements of cash flows, derivative activities are classified based on the items being hedged. | ||||||||||||||||||||
Realized gains and losses from hedges are classified in the consolidated statements of earnings consistent with the accounting treatment of the items being hedged. Upon the early dedesignation of an effective derivative contract, the gains or losses are deferred in accumulated other comprehensive earnings until the originally hedged item affects earnings. Any gains or losses incurred after the dedesignation date are recorded in earnings immediately. | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
The company is subject to various legal proceedings and claims, including those that arise in the ordinary course of business. The company records loss contingencies when it determines that the outcome of the future event is probable of occurring and when the amount of the loss can be reasonably estimated. Gain contingencies are recognized in the financial statements when they are realized. | ||||||||||||||||||||
The determination of a reserve for a loss contingency is based on management’s judgment of probability and estimates with respect to the likelihood of an outcome and valuation of the future event. Liabilities are recorded or adjusted when events or circumstances cause these judgments or estimates to change. In assessing whether a loss is probable, Ball may consider the following factors, among others: the nature of the litigation, claim or assessment; available information, opinions or views of legal counsel and other advisors; and the experience gained from similar cases by the company and others. The company provides disclosures for material contingencies when there is a reasonable possibility that a loss or an additional loss may be incurred. Actual amounts realized upon settlement of contingencies may be different than amounts recorded and disclosed and could have a significant impact on the company’s consolidated financial statements. See Note 20 to the consolidated financial statements within Item 8 of this annual report for further details. | ||||||||||||||||||||
Significant Accounting Policies | ||||||||||||||||||||
Principles of Consolidation and Basis of Presentation | ||||||||||||||||||||
The consolidated financial statements include the accounts of Ball, its subsidiaries, and variable interest entities in which the company is considered to be the primary beneficiary. Equity investments in which the company exercises significant influence but does not control and is not the primary beneficiary are accounted for using the equity method of accounting. Investments in which the company does not exercise significant influence over the investee are accounted for using the cost method of accounting. Intercompany transactions are eliminated. | ||||||||||||||||||||
Reclassifications | ||||||||||||||||||||
Certain prior year amounts have been reclassified in order to conform to the current year presentation. | ||||||||||||||||||||
Revision of Prior Period Financial Statements Related to Deferred Taxes | ||||||||||||||||||||
During the second quarter of 2014, Ball identified errors in the determination of certain deferred tax amounts, originating in 2007 and prior, primarily related to fixed assets, Canadian entity valuation allowances and pension, other postretirement benefits and restructuring balances in a Canadian entity. The correction of these items impacted the consolidated balance sheets and statements of comprehensive earnings for the years ended December 31, 2013, 2012 and 2011, as presented in the company´s 2013 annual report and the unaudited condensed financial statements for each prior quarterly interim period. Additionally, as a result of these corrections, the 2012 consolidated statement of earnings should have included a tax provision related to the settlement of certain pension plans of the Canadian entity. The company assessed the applicable guidance issued by the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB) and concluded that these misstatements were not material to Ball’s consolidated financial statements for the aforementioned prior periods; however, the company did conclude that correcting these prior misstatements would be material to the second quarter and full year 2014 consolidated statements of earnings. As a result of this analysis, the 2013 and 2012 consolidated financial statements included in this annual report have been revised to reflect the proper determination of these deferred tax positions and all related impacts. Following is a summary of the financial statement line items impacted by this revision for all periods and statements included in this annual report: | ||||||||||||||||||||
Revised Consolidated Statement of Earnings Amounts | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
($ in millions, except per share amounts) | As Previously | Adjustments | As Revised | |||||||||||||||||
Reported | ||||||||||||||||||||
Tax provision | $ | (165.0 | ) | $ | (7.2 | ) | $ | (172.2 | ) | |||||||||||
Net earnings | 426.5 | (7.2 | ) | 419.3 | ||||||||||||||||
Net earnings from continuing operations attributable to Ball | 406.3 | (7.2 | ) | 399.1 | ||||||||||||||||
Basic earnings per share - continuing operations | $ | 2.63 | $ | (0.05 | ) | $ | 2.58 | |||||||||||||
Diluted earnings per share - continuing operations | 2.57 | (0.05 | ) | 2.52 | ||||||||||||||||
Revised Consolidated Statements of Comprehensive Earnings Amounts | ||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||||||
($ in millions) | As Previously | Adjustments | As Revised | As Previously | Adjustments | As Revised | ||||||||||||||
Reported | Reported | |||||||||||||||||||
Net earnings | $ | 435 | $ | — | $ | 435 | $ | 426.5 | $ | (7.2 | ) | $ | 419.3 | |||||||
Pension and other postretirement benefits | 79.2 | 0.5 | 79.7 | (79.5 | ) | 7.2 | (72.3 | ) | ||||||||||||
Total comprehensive earnings | 546.9 | 0.5 | 547.4 | 409 | — | 409 | ||||||||||||||
Comprehensive earnings attributable to Ball Corporation | 518.5 | 0.5 | 519 | 386.3 | — | 386.3 | ||||||||||||||
Revised Consolidated Balance Sheets Amounts | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
($ in millions) | As Previously | Adjustments | As Revised | As Previously | Adjustments | As Revised | ||||||||||||||
Reported | Reported | |||||||||||||||||||
Deferred taxes and other current assets | $ | 162 | $ | 5.2 | $ | 167.2 | $ | 190.8 | $ | 5.2 | $ | 196 | ||||||||
Goodwill | 2,404.30 | (4.6 | ) | 2,399.70 | 2,359.40 | (4.6 | ) | 2,354.80 | ||||||||||||
Intangibles and other assets, net | 577.5 | — | 577.5 | 531.6 | 13 | 544.6 | ||||||||||||||
Total assets | 7,819.80 | 0.6 | 7,820.40 | 7,507.10 | 13.6 | 7,520.70 | ||||||||||||||
Deferred taxes and other liabilities | 285.6 | (24.1 | ) | 261.5 | 207.9 | (10.6 | ) | 197.3 | ||||||||||||
Total liabilities | 6,428.50 | (24.1 | ) | 6,404.40 | 6,217.10 | (10.6 | ) | 6,206.50 | ||||||||||||
Retained earnings | 3,913.80 | 33.9 | 3,947.70 | 3,580.80 | 33.9 | 3,614.70 | ||||||||||||||
Accumulated other comprehensive earnings (loss) | (240.7 | ) | (9.2 | ) | (249.9 | ) | (352.4 | ) | (9.7 | ) | (362.1 | ) | ||||||||
Total shareholders´equity | 1,391.30 | 24.7 | 1,416.00 | 1,290.00 | 24.2 | 1,314.20 | ||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||||
Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less. | ||||||||||||||||||||
Inventories | ||||||||||||||||||||
Inventories are stated at the lower of cost or market using either the first-in, first-out (FIFO) cost method of accounting or the average cost method. Inventory cost is calculated for each inventory component taking into consideration the appropriate cost factors including fixed and variable overhead, material price volatility and production levels. | ||||||||||||||||||||
Depreciation and Amortization | ||||||||||||||||||||
Property, plant and equipment are carried at the cost of acquisition or construction and depreciated over the estimated useful lives of the assets. Repairs and maintenance costs, including labor and material costs for major improvements such as annual production line overhauls, are expensed as incurred, unless those costs substantially increase the useful lives or capacity of the existing assets. Assets are depreciated and amortized using the straight-line method over their estimated useful lives, generally 5 to 40 years for buildings and improvements and 2 to 20 years for machinery and equipment. Finite-lived intangible assets, including capitalized software costs, are generally amortized over their estimated useful lives of 3 to 23 years. The company periodically reviews these estimated useful lives and when appropriate changes are made prospectively. | ||||||||||||||||||||
During 2012, the company utilized a third party appraiser to assist in the evaluation of the estimated useful lives of its drawn and ironed container and related end production equipment used to make beverage containers and ends and two-piece food containers. This evaluation was performed as a result of the global alignment of the company’s use and maintenance practices for this equipment and the company’s experience with the duration over which this equipment can be utilized. As a result, the company revised the estimated useful lives of this type of equipment utilized throughout the company, which resulted in a net reduction in depreciation expense and cost of sales of $34.9 million ($22.3 million after tax, or $0.14 per diluted share) for the year ended December 31, 2012, as compared to the amount of depreciation expense and cost of sales that would have been recognized by utilizing the prior depreciable lives. The company also evaluated its estimates of the accounting for tooling, spare parts and dunnage, as well as the related obsolescence, and aligned its practices for all operations, resulting in a one-time increase in cost of sales and depreciation expense of $11.0 million ($6.7 million after tax, or $0.04 per diluted share) for the year ended December 31, 2012, primarily attributable to the immediate recognition of expense as items are placed in service. | ||||||||||||||||||||
Deferred financing costs are amortized over the life of the related loan facility and are reported as part of interest expense. When debt is extinguished prior to its maturity date, the write-off of the remaining unamortized deferred financing costs, or pro rata portion thereof, is also reported as interest expense. | ||||||||||||||||||||
Under certain business consolidation activities, accelerated depreciation may be required over the remaining useful life for designated assets to be scrapped or abandoned. The accelerated depreciation related to facility closures is disclosed as part of the business consolidation costs in the appropriate period. | ||||||||||||||||||||
Environmental Reserves | ||||||||||||||||||||
The company estimates the liability related to environmental matters based on, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. The company records the best estimate of a loss when the loss is considered probable. As additional information becomes available, the company assesses the potential liability related to pending matters and revises the estimates. | ||||||||||||||||||||
Revenue Recognition in the Packaging Segments | ||||||||||||||||||||
The company recognizes sales of products in the packaging segments when the four basic criteria of revenue recognition are met: delivery has occurred; title has transferred; there is persuasive evidence of an agreement or arrangement and the price is fixed or determinable; and collection is reasonably assured. Shipping and handling costs are reported within cost of sales in the consolidated statement of earnings. | ||||||||||||||||||||
Revenue Recognition in the Aerospace and Technologies Segment | ||||||||||||||||||||
Sales under long-term contracts in the aerospace and technologies segment are primarily recognized using percentage-of-completion under the cost-to-cost method of accounting. The two primary types of long-term sales contracts utilized are cost-type contracts, which are agreements to perform for cost plus an agreed upon profit component and fixed price sales contracts, which are completed for a fixed price. Cost-type sales contracts can have different types of fee arrangements, including fixed fee, cost, milestone and performance incentive fees, award fees or a combination thereof. | ||||||||||||||||||||
At the inception of contract performance, our estimates of base, incentive and other fees are established at a conservative estimate of profit over the period of contract performance. Throughout the period of contract performance, the company regularly reevaluates and, if necessary, revises estimates of total contract revenue, total contract cost, extent of progress toward completion, probability of receipt of any award and performance fees and any clawback provisions included in the contract. Provision for estimated contract losses, if any, is made in the period that such losses are determined to be probable. Because of sales contract payment schedules, limitations on funding, and contract terms, our sales and accounts receivable generally include amounts that have been earned but not yet billed. As a prime U.S. government contractor or subcontractor, the aerospace and technologies segment is subject to a high degree of regulation, financial review and oversight by the U.S. government. | ||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
Generally accepted accounting principles define fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value using the following definitions (from highest to lowest priority): | ||||||||||||||||||||
· | Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||||||||||||
· | Level 2—Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. | |||||||||||||||||||
· | Level 3—Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable. | |||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||
Ball has a variety of restricted stock and stock option plans, and the related stock-based compensation is primarily reported as part of selling, general and administrative expenses in the consolidated statements of earnings. The compensation expense associated with restricted stock grants is calculated using the fair value at the date of grant (closing stock price) and is amortized over the restriction period. For stock options and stock-settled appreciation rights (SSARs), the company has elected to use the Black-Scholes valuation model and amortizes the estimated fair value on a straight-line basis over the requisite service period (generally the vesting period). The company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is marked to the closing price of the company’s common stock at the end of each reporting period. Tax benefits associated with option exercises are reported in financing activities in the consolidated statements of cash flows. Further details regarding the expense calculated under the fair value based method are provided in Note 16. | ||||||||||||||||||||
Research and Development | ||||||||||||||||||||
Research and development costs are expensed as incurred in connection with the company’s programs for the development of products and processes. Costs incurred in connection with these programs, the majority of which are included in cost of sales, amounted to $26.6 million, $31.2 million and $26.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
Currency Translation | ||||||||||||||||||||
Assets and liabilities of foreign operations with a functional currency other than the U.S. dollar are translated using period-end exchange rates, and revenues and expenses are translated using average exchange rates during each period. Translation gains and losses are reported in accumulated other comprehensive earnings as a component of shareholders’ equity. | ||||||||||||||||||||
Accounting_Pronouncements
Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Pronouncements | |
Accounting Pronouncements | 2. Accounting Pronouncements |
Recently Adopted Accounting Standards | |
In November 2014, accounting guidance was issued to provide an entity with the option to apply pushdown accounting in its separate financial statements in the event an acquirer obtains control of an acquired entity. The election to apply pushdown accounting can be made either in the period in which the change of control occurred, or in a subsequent period. This guidance was effective as of November 18, 2014, and did not have any effect on the company’s consolidated financial statements. The company will evaluate this guidance in the event of a future business combination. | |
In July 2013, accounting guidance was issued to eliminate diversity in practice for the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. In general, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, unless certain exceptions exist. The guidance was effective for Ball on January 1, 2014, and did not have a material effect on the company’s consolidated financial statements. | |
In May 2013, the Committee of Sponsoring Organization of the Treadway Commission (COSO) issued the 2013 “Internal Control — Integrated Framework” (Framework). The 2013 Framework is expected to: (1) help companies design and implement internal controls in light of the changes in business and operating environments since the issuance of the original Framework, (2) broaden the application of internal controls in addressing operating and reporting objectives and (3) clarify the requirements for determining what constitutes effective internal controls. Implementation of the 2013 Framework was effective for Ball for the year ended December 31, 2014, and did not have a material effect on the company’s established internal controls over financial reporting. | |
In March 2013, accounting guidance was issued to clarify that a company should release the cumulative translation adjustment into net earnings if the parent ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity. The guidance also affects entities that lose a controlling financial interest in an investment in a foreign entity and those that acquire a business in stages by increasing an investment in a foreign entity from one accounted for under the equity method to one accounted for as a consolidated investment. The guidance was effective for Ball prospectively on January 1, 2014, and did not have a material effect on the company’s consolidated financial statements. | |
New Accounting Guidance | |
In August 2014, accounting guidance was issued to define management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosure in certain circumstances. Under the new guidance, management is required to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and to provide related disclosures. The guidance will be effective for Ball on January 1, 2017, and is not expected to have a material effect on the company’s consolidated financial statements. | |
In May 2014, the FASB and International Accounting Standards Board jointly issued new revenue recognition guidance which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The new guidance contains a more robust framework for addressing revenue issues and is intended to remove inconsistencies in existing guidance and improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The guidance will supersede the majority of current revenue recognition guidance, including industry-specific guidance. The guidance will be effective for Ball on January 1, 2017, and early adoption is not permitted for the company. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. The company is currently assessing the impact that the adoption of this standard will have on its consolidated financial statements. | |
In April 2014, accounting guidance was issued to change the criteria for reporting discontinued operations. Under the new guidance, only disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on an entity’s operations should be reported as discontinued operations in the financial statements. The new guidance also requires expanded disclosures for discontinued operations, as well as disclosures about the financial effects of significant disposals that do not qualify for discontinued operations. The guidance will be effective for Ball on January 1, 2015, and is not expected to have a material effect on the company’s consolidated financial statements. | |
Business_Segment_Information
Business Segment Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Business Segment Information | ||||||||||||||||||||
Business Segment Information | ||||||||||||||||||||
3. Business Segment Information | ||||||||||||||||||||
Ball’s operations are organized and reviewed by management along its product lines and geographical areas and presented in the four reportable segments discussed below. | ||||||||||||||||||||
Metal beverage packaging, Americas and Asia: Consists of the metal beverage packaging, Americas, operations in the U.S., Canada and Brazil, and the metal beverage packaging, Asia, operations in the People’s Republic of China (PRC). The Americas and Asia segments have been aggregated based on similar economic and qualitative characteristics. The operations in this reporting segment manufacture and sell metal beverage containers. | ||||||||||||||||||||
Metal beverage packaging, Europe: Consists of operations in several countries in Europe, which manufacture and sell metal beverage containers. | ||||||||||||||||||||
Metal food and household products packaging: Consists of operations in the U.S., Europe, Canada, Mexico and Argentina, which manufacture and sell steel food, aerosol, paint, general line and decorative specialty containers, as well as extruded aluminum beverage and aerosol containers and aluminum slugs. | ||||||||||||||||||||
Aerospace and technologies: Consists of the manufacture and sale of aerospace and other related products and the providing of services used in the defense, civil space and commercial space industries. | ||||||||||||||||||||
The accounting policies of the segments are the same as those in the consolidated financial statements and are discussed in Note 1. The company also has investments in companies in the U.S. and Vietnam, which are accounted for under the equity method of accounting and, accordingly, those results are not included in segment sales or earnings. | ||||||||||||||||||||
Major Customers | ||||||||||||||||||||
Net sales to major customers, as a percentage of consolidated net sales, were as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Coca-Cola Bottlers’ Sales & Services Company LLC | 11 | % | 11 | % | 11 | % | ||||||||||||||
MillerCoors LLC and SABMiller plc | 10 | % | 9 | % | 9 | % | ||||||||||||||
U.S. Government | 10 | % | 10 | % | 9 | % | ||||||||||||||
Summary of Net Sales by Geographic Area | ||||||||||||||||||||
($ in millions) | U.S. (a) | Foreign | Consolidated | |||||||||||||||||
2014 | $ | 5,090.7 | $ | 3,479.3 | $ | 8,570.0 | ||||||||||||||
2013 | 5,103.9 | 3,364.2 | 8,468.1 | |||||||||||||||||
2012 | 5,463.2 | 3,272.5 | 8,735.7 | |||||||||||||||||
Summary of Net Long-Lived Assets by Geographic Area | ||||||||||||||||||||
($ in millions) | U.S. | Brazil | PRC | Germany | Other | Consolidated | ||||||||||||||
2014 | $ | 1,219.4 | $ | 458.6 | $ | 269.2 | $ | 265.1 | $ | 591.1 | $ | 2,803.4 | ||||||||
2013 | 1,099.6 | 465.7 | 281.2 | 296.3 | 576.0 | 2,718.8 | ||||||||||||||
(a) | Includes intercompany eliminations. | |||||||||||||||||||
(b) | Long-lived assets exclude goodwill and intangible assets. | |||||||||||||||||||
Summary of Business by Segment | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Net sales | ||||||||||||||||||||
Metal beverage packaging, Americas & Asia | $ | 4,246.80 | $ | 4,193.40 | $ | 4,541.70 | ||||||||||||||
Metal beverage packaging, Europe | 1,896.30 | 1,828.30 | 1,771.30 | |||||||||||||||||
Metal food & household products packaging | 1,504.40 | 1,558.60 | 1,559.90 | |||||||||||||||||
Aerospace & technologies | 934.8 | 897.1 | 876.8 | |||||||||||||||||
Corporate and intercompany eliminations | (12.3 | ) | (9.3 | ) | (14.0 | ) | ||||||||||||||
Net sales | $ | 8,570.00 | $ | 8,468.10 | $ | 8,735.70 | ||||||||||||||
Net earnings | ||||||||||||||||||||
Metal beverage packaging, Americas & Asia | $ | 534.8 | $ | 512.4 | $ | 522.9 | ||||||||||||||
Business consolidation and other activities | (7.5 | ) | (3.6 | ) | (52.4 | ) | ||||||||||||||
Total metal beverage packaging, Americas & Asia | 527.3 | 508.8 | 470.5 | |||||||||||||||||
Metal beverage packaging, Europe | 222.9 | 182.6 | 182.3 | |||||||||||||||||
Business consolidation and other activities | (8.7 | ) | (10.6 | ) | (9.6 | ) | ||||||||||||||
Total metal beverage packaging, Europe | 214.2 | 172 | 172.7 | |||||||||||||||||
Metal food & household products packaging | 154.2 | 177.4 | 167.8 | |||||||||||||||||
Business consolidation and other activities | (41.9 | ) | (63.7 | ) | (27.5 | ) | ||||||||||||||
Total metal food & household products packaging | 112.3 | 113.7 | 140.3 | |||||||||||||||||
Aerospace & technologies | 93.6 | 80.1 | 86.6 | |||||||||||||||||
Business consolidation and other activities | (13.9 | ) | (0.2 | ) | (1.9 | ) | ||||||||||||||
Total aerospace & technologies | 79.7 | 79.9 | 84.7 | |||||||||||||||||
Segment earnings before interest and taxes | 933.5 | 874.4 | 868.2 | |||||||||||||||||
Undistributed and corporate expenses and intercompany eliminations, net | (86.4 | ) | (78.3 | ) | (66.3 | ) | ||||||||||||||
Business consolidation and other activities | (8.5 | ) | (0.7 | ) | (11.4 | ) | ||||||||||||||
Total undistributed and corporate expenses and intercompany eliminations, net | (94.9 | ) | (79.0 | ) | (77.7 | ) | ||||||||||||||
Earnings before interest and taxes | 838.6 | 795.4 | 790.5 | |||||||||||||||||
Interest expense | (159.9 | ) | (183.8 | ) | (179.8 | ) | ||||||||||||||
Debt refinancing costs | (33.1 | ) | (28.0 | ) | (15.1 | ) | ||||||||||||||
Total interest expense | (193.0 | ) | (211.8 | ) | (194.9 | ) | ||||||||||||||
Tax provision (a) | (149.9 | ) | (149.6 | ) | (172.2 | ) | ||||||||||||||
Equity in results of affiliates, net of tax | 2.3 | 0.6 | (1.3 | ) | ||||||||||||||||
Net earnings from continuing operations (a) | 498 | 434.6 | 422.1 | |||||||||||||||||
Discontinued operations, net of tax | — | 0.4 | (2.8 | ) | ||||||||||||||||
Net earnings (a) | 498 | 435 | 419.3 | |||||||||||||||||
Less net earnings attributable to noncontrolling interests | (28.0 | ) | (28.2 | ) | (23.0 | ) | ||||||||||||||
Net earnings attibutable to Ball Corporation (a) | $ | 470 | $ | 406.8 | $ | 396.3 | ||||||||||||||
(a) | 2012 amounts have been revised; further details are included in the “Revision of Prior Period Financial Statements Related to Deferred Taxes” section of Note 1. | |||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Depreciation and Amortization | ||||||||||||||||||||
Metal beverage packaging, Americas & Asia | $ | 128.7 | $ | 121.9 | $ | 116.9 | ||||||||||||||
Metal beverage packaging, Europe | 62.5 | 87.0 | 82.4 | |||||||||||||||||
Metal food & household products packaging | 57.1 | 59.4 | 54.6 | |||||||||||||||||
Aerospace & technologies | 26.2 | 24.1 | 21.9 | |||||||||||||||||
Segment depreciation and amortization | 274.5 | 292.4 | 275.8 | |||||||||||||||||
Corporate | 6.4 | 7.5 | 7.1 | |||||||||||||||||
Depreciation and amortization | $ | 280.9 | $ | 299.9 | $ | 282.9 | ||||||||||||||
Capital Expenditures | ||||||||||||||||||||
Metal beverage packaging, Americas & Asia | $ | 160.1 | $ | 224.0 | $ | 173.9 | ||||||||||||||
Metal beverage packaging, Europe | 108.6 | 75.4 | 45.6 | |||||||||||||||||
Metal food & household products packaging | 81.6 | 43.0 | 36.3 | |||||||||||||||||
Aerospace & technologies | 30.1 | 29.4 | 43.7 | |||||||||||||||||
Segment capital expenditures | 380.4 | 371.8 | 299.5 | |||||||||||||||||
Corporate | 10.4 | 6.5 | 5.5 | |||||||||||||||||
Capital expenditures | $ | 390.8 | $ | 378.3 | $ | 305.0 | ||||||||||||||
December 31, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||
Total Assets | ||||||||||||||||||||
Metal beverage packaging, Americas & Asia | $ | 3,422.80 | $ | 3,426.40 | ||||||||||||||||
Metal beverage packaging, Europe | 2,274.50 | 2,380.10 | ||||||||||||||||||
Metal food & household products packaging (a) | 1,508.10 | 1,556.30 | ||||||||||||||||||
Aerospace & technologies | 411.6 | 346.1 | ||||||||||||||||||
Segment assets (a) | 7,617.00 | 7,708.90 | ||||||||||||||||||
Corporate assets, net of eliminations | (46.0 | ) | 111.5 | |||||||||||||||||
Total assets (a) | $ | 7,571.00 | $ | 7,820.40 | ||||||||||||||||
Investments in Affiliates | ||||||||||||||||||||
Metal beverage packaging, Americas & Asia | $ | 31.3 | $ | 31.9 | ||||||||||||||||
Metal beverage packaging, Europe | 0.5 | 0.4 | ||||||||||||||||||
Corporate assets, net of eliminations | 1.4 | 1.4 | ||||||||||||||||||
Total investments in affiliates | $ | 33.2 | $ | 33.7 | ||||||||||||||||
(a) | 2013 amounts have been revised; further details are included in the “Revision of Prior Period Financial Statements Related to Deferred Taxes” section of Note 1. | |||||||||||||||||||
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2014 | |
Acquisitions | |
Acquisitions | |
4. Acquisitions | |
Envases del Plata S.A. de C.V. | |
In December 2012, the company acquired a leading producer of extruded aluminum aerosol packaging in Mexico with a single manufacturing facility in San Luis Potosí, for cash of $57.7 million, net of cash acquired, and assumed debt of $72.7 million. The facility produces extruded aluminum aerosol containers for personal care and household products for customers in North, Central and South America and employs approximately 150 people. The acquisition provides a platform to grow the company’s existing North American extruded aluminum business and new end market for the company’s products, including the company’s ReAlTM technology that enables the use of recycled material and meaningful lightweighting in the manufacture of extruded aluminum packaging. Based on the final purchase price allocation, goodwill of $64.0 million was recorded. This acquisition is not material to the metal food and household products packaging segment. | |
Tubettificio Europeo S.p.A. (Tubettificio) | |
In August 2012, the company acquired Tubettificio, a small regional manufacturer of metal beverage packaging containers in Italy for cash of approximately $15.3 million and consolidated it into other existing facilities. This acquisition is not material to the metal beverage packaging, Europe, segment. | |
Business_Consolidation_and_Oth
Business Consolidation and Other Activities | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Business Consolidation and Other Activities | ||||||||||||||||||||
Business Consolidation and Other Activities | ||||||||||||||||||||
5. Business Consolidation and Other Activities | ||||||||||||||||||||
Following is a summary of business consolidation and other activity (charges)/gains included in the consolidated statements of earnings: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Metal beverage packaging, Americas & Asia | $ | (7.5 | ) | $ | (3.6 | ) | $ | (52.4 | ) | |||||||||||
Metal beverage packaging, Europe | (8.7 | ) | (10.6 | ) | (9.6 | ) | ||||||||||||||
Metal food & household products packaging | (41.9 | ) | (63.7 | ) | (27.5 | ) | ||||||||||||||
Aerospace & technologies | (13.9 | ) | (0.2 | ) | (1.9 | ) | ||||||||||||||
Corporate and other | (8.5 | ) | (0.7 | ) | (11.4 | ) | ||||||||||||||
$ | (80.5 | ) | $ | (78.8 | ) | $ | (102.8 | ) | ||||||||||||
2014 | ||||||||||||||||||||
Metal Beverage Packaging, Americas and Asia | ||||||||||||||||||||
During September 2014, the company executed a lump sum buyout offer to certain terminated vested pension plan participants in its U.S. defined benefit pension plans. The offer provided participants with a one-time election to receive a lump-sum payout in full settlement of their remaining pension benefits (see Note 14 for details). In connection with this offer, a non-cash charge of $13.9 million was recorded in the segment for the settlement of its pension benefit obligations in 2014. | ||||||||||||||||||||
During 2014, a fire occurred at a metal beverage packaging, Americas, facility. As a result, the company recorded a gain of $3.5 million to reflect the difference between the net book value of the impaired assets and the net insurance proceeds. | ||||||||||||||||||||
In 2014, the company received and recorded compensation of $5.0 million for the reimbursement of severance costs incurred in connection with the company’s closure and relocation of the Shenzhen, PRC, manufacturing facility in 2013. | ||||||||||||||||||||
Additionally, the company sold its plastic motor oil container and pail manufacturing business in the PRC and recorded a net loss of $0.4 million in connection with the sale. | ||||||||||||||||||||
Also included in 2014 were net charges of $1.7 million related to business reorganization activities in the company’s metal beverage packaging, Asia, operations, and for ongoing costs related to previously closed facilities and other insignificant activities. | ||||||||||||||||||||
Metal Beverage Packaging, Europe, and Corporate | ||||||||||||||||||||
In 2014, the company recorded a non-cash charge of $7.2 million for the aforementioned settlement of its pension benefit obligations. | ||||||||||||||||||||
The company recorded charges of $4.1 million, primarily for headcount reductions, cost-out initiatives and the relocation of the company’s European headquarters from Germany to Switzerland. | ||||||||||||||||||||
During the fourth quarter, the company recorded charges of $1.1 million related to business reorganization activities in the company’s metal beverage packaging, Europe, operations. Also included in 2014 were charges of $4.8 million related to the write off of previously capitalized costs associated with the company’s Lublin, Poland, facility, and for other insignificant activities. | ||||||||||||||||||||
Metal Food and Household Products Packaging | ||||||||||||||||||||
In the fourth quarter, the company recorded a provision against the balance of a long-term receivable of $16.5 million as a result of the financial difficulties of a metal food and household products packaging segment customer. This provision represents the company’s estimate of the most likely potential loss of value it expects to incur as a result of the financial condition of this customer. The company’s estimate of potential loss as a result of this event may change in the future if the customer’s facts and circumstances change. | ||||||||||||||||||||
During 2014, the company recorded a non-cash charge of $10.3 million for the aforementioned settlement of its pension benefit obligations. | ||||||||||||||||||||
In 2014, the company recorded charges of $6.2 million related to a reduction in force to eliminate certain food can production in the Oakdale, California, facility, as well as charges related to voluntary separation programs. The year also included charges of $3.9 million for costs in connection with the announced closure of its Danville, Illinois, steel aerosol packaging facility. Additionally, charges of $5.0 million were recorded for previously closed facilities and other insignificant activities. | ||||||||||||||||||||
Aerospace and Technologies | ||||||||||||||||||||
During 2014, the company recorded a non-cash charge of $13.9 million for the aforementioned settlement of its pension benefit obligations. | ||||||||||||||||||||
2013 | ||||||||||||||||||||
Metal Beverage Packaging, Americas and Asia | ||||||||||||||||||||
During July 2013, the company signed a compensation agreement for approximately $72 million pretax with the PRC government to close the Shenzhen manufacturing facility and relocate the production capacity. Proceeds from the compensation agreement offset costs related to the closure and relocation of the Shenzhen facility and were composed of compensation for the disposal of the land and building, the disposal and transfer of machinery and equipment, business interruption losses and severance. Compensation received in excess of expenses or losses incurred by the company were reflected in business consolidation and other activities. During 2013, the company received and recorded the following: (1) $34.0 million of compensation for land and buildings, resulting in income of $26.2 million for the excess compensation over net book value; (2) $26.8 million of compensation for machinery and equipment, including removal costs, of which $3.8 million was used to offset 2013 costs and $23.0 million was deferred in the balance sheet to offset capital expenditures for the relocation of capacity; (3) $6.2 million of compensation for business interruption, of which $4.1 million was recognized in cost of sales in 2013; (4) $7.2 million of expense for severance costs, the majority of which was compensated in the first quarter of 2014 and (5) $1.6 million for other costs that were not compensated under the agreement. | ||||||||||||||||||||
In 2013, Ball eliminated 12-ounce beverage can production from the company’s Milwaukee, Wisconsin, facility. In connection with the line shut down, the company recorded charges of $9.7 million, composed of $4.6 million for accelerated depreciation, $2.1 million for severance and other employee benefits and $3.0 million for other costs. In addition, the company recorded net charges of $11.3 million, primarily for ongoing costs related to the previously announced closures of Ball’s Columbus, Ohio, and Gainesville, Florida, facilities and voluntary separation programs, as well as other insignificant costs. | ||||||||||||||||||||
Metal Beverage Packaging, Europe, and Corporate | ||||||||||||||||||||
The company recorded charges of $11.3 million, primarily for headcount reductions, cost-out initiatives and the relocation of the company’s European headquarters from Germany to Switzerland. | ||||||||||||||||||||
Metal Food and Household Products Packaging | ||||||||||||||||||||
During the fourth quarter, the company announced plans to close its Danville, Illinois, steel aerosol packaging facility in the second half of 2014, and recorded charges of $4.9 million in connection with this planned closure. The Danville facility produced steel aerosol cans and ends for household products customers, which are now supplied by other North American metal food and household products packaging facilities. | ||||||||||||||||||||
The company recorded an accounts receivable provision of $27.0 million as a result of the October 28, 2013, bankruptcy filing of a metal food and household products packaging segment customer. This provision represented the company’s estimate of the most likely potential loss of value it expected to incur on the approximately $46.5 million accounts receivable balance as a result of the customer’s bankruptcy. In October 2013, the company entered into an agreement with the customer’s second lien lenders to provide, among other things, that if such lenders were the successful bidder for the customer’s assets out of bankruptcy, the company would supply the lenders’ can and end requirements under a new long-term contract. On February 6, 2014, the lenders were selected as the successful bidder for the customer’s assets and such selection was approved by the U.S. Bankruptcy Court on February 12, 2014. The lenders acquired the customer’s assets on February 28, 2014, and as a result, the company fully wrote off the accounts receivable reserved for at December 31, 2013. The company also recorded various short-term and long-term receivables in conjunction with the lender’s acquisition. | ||||||||||||||||||||
The company closed its Elgin, Illinois, metal food and household products packaging facility in December 2013 and recorded total charges of $29.0 million during the year composed of $16.0 million for severance, pension and other employee benefits; $4.2 million for the write down of the land and building to net realizable value; and $8.8 million for the accelerated depreciation on assets to be abandoned and other closure costs. The Elgin facility produced steel aerosol and specialty cans, as well as flat steel sheet used by other Ball facilities, which are now supplied by other North American metal food and household products packaging facilities. | ||||||||||||||||||||
During 2013 the company also recorded: (1) a charge of $5.9 million to migrate certain hourly employees from a multi-employer defined benefit pension plan as of January 1, 2014, to a Ball-sponsored defined benefit pension plan; (2) income of $3.5 million to accrue for the reimbursement of funds paid in 2012 for the settlement of certain Canadian defined benefit pension liabilities related to previously closed facilities and (3) charges of $0.4 million for other insignificant costs. | ||||||||||||||||||||
2012 | ||||||||||||||||||||
Metal Beverage Packaging, Americas and Asia | ||||||||||||||||||||
In August 2012, Ball announced plans to close its Columbus, Ohio, beverage container manufacturing facility and its Gainesville, Florida, end facility. The two facilities were closed in order to consolidate the company’s 12-ounce beverage container and end production capacity to meet changing market demand. In connection with the closures and a related voluntary separation program completed within the segment, the company recorded charges of $50.2 million, of which $20.4 million represented severance, pension and other employee benefits; $19.9 million represented accelerated depreciation on abandoned assets, $5.3 million represented the write down of real property to net realizable value and $4.6 million represented the obsolescence of tooling and spares. | ||||||||||||||||||||
Also included in 2012 were net charges of $2.2 million related to previously closed facilities and other insignificant costs. | ||||||||||||||||||||
Metal Beverage Packaging, Europe | ||||||||||||||||||||
Charges of $6.3 million were recorded in the segment in connection with the relocation of the company’s European headquarters from Germany to Switzerland in 2012. | ||||||||||||||||||||
The company also recorded charges of $1.7 million related to a fire at one of the company’s metal beverage container plants in the United Kingdom and net charges of $1.6 million related to previously closed facilities and other insignificant costs. | ||||||||||||||||||||
Metal Food and Household Products Packaging | ||||||||||||||||||||
In November 2012, the company purchased annuities with pension trust assets to settle the liabilities in certain of its Canadian defined benefit pension plans. In connection with the final settlement, the company recorded charges of $26.7 million, which primarily represented previously unrecognized losses included in accumulated other comprehensive earnings (loss). | ||||||||||||||||||||
Also included in 2012 were net charges of $0.8 million related to previously closed facilities and other insignificant costs. | ||||||||||||||||||||
Corporate and Aerospace and Technologies | ||||||||||||||||||||
The company incurred costs of $6.2 million at the corporate headquarters in connection with the relocation of the company’s European headquarters from Germany to Switzerland discussed above. The year also included charges of $2.9 million for transaction costs related to the acquisition of Envases in December 2012 and $3.4 million for a voluntary separation program offered to corporate headquarters and aerospace and technologies employees. Additionally, net charges of $0.8 million were recorded to reflect other individually insignificant costs. | ||||||||||||||||||||
Summary | ||||||||||||||||||||
Detailed below is a summary by segment of the activity in the restructuring reserves for the years ended December 31, 2014 and 2013. The reserve balances are included in other current liabilities on the consolidated balance sheets. | ||||||||||||||||||||
($ in millions) | Metal | Metal Food & | Metal | Aerospace & | Corporate & | Total | ||||||||||||||
Beverage | Household | Beverage | Technologies | Other Costs | ||||||||||||||||
Packaging, | Products | Packaging, | ||||||||||||||||||
Americas & | Packaging | Europe | ||||||||||||||||||
Asia | ||||||||||||||||||||
Balance at December 31 2012 | $ | 16.4 | $ | 3 | $ | — | $ | 1.9 | $ | 3.8 | $ | 25.1 | ||||||||
(Gains) charges to earnings | (3.2 | ) | 19.9 | — | — | 0.2 | 16.9 | |||||||||||||
Cash payments and other activity | (11.3 | ) | (8.2 | ) | — | (1.9 | ) | (4.0 | ) | (25.4 | ) | |||||||||
Balance at December 31 2013 | 1.9 | 14.7 | — | — | — | 16.6 | ||||||||||||||
(Gains) charges to earnings | (1.7 | ) | 12.6 | 0.9 | — | — | 11.8 | |||||||||||||
Cash payments and other activity | (0.2 | ) | (22.2 | ) | — | — | — | (22.4 | ) | |||||||||||
Balance at December 31 2014 | $ | — | $ | 5.1 | $ | 0.9 | $ | — | $ | — | $ | 6 | ||||||||
The carrying value of assets held for sale in connection with facility closures was approximately $11.7 million and $20.4 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||
Receivables
Receivables | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables | ||||||||
Receivables | ||||||||
6. Receivables | ||||||||
December 31, | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Trade accounts receivable | $ | 800 | $ | 835.2 | ||||
Less allowance for doubtful accounts | (7.0 | ) | (36.3 | ) | ||||
Net trade accounts receivable | 793 | 798.9 | ||||||
Other receivables | 164.1 | 60.5 | ||||||
$ | 957.1 | $ | 859.4 | |||||
The allowance for doubtful accounts at December 31, 2013, included a provision of $27.0 million as a result of the October 2013 bankruptcy filing of a metal food and household products packaging segment customer. Additional details are available in Note 5. Other receivables include income and sales tax receivables, certain vendor rebate receivables and other miscellaneous receivables. | ||||||||
Net accounts receivable under long-term contracts, due primarily from agencies of the U.S. government and their prime contractors, were $205.8 million and $144.8 million for the years ended December 31, 2014 and 2013, respectively, and included $133.3 million and $99.2 million at each period end, respectively, representing the recognized sales value of performance that was not yet billable to customers. The average length of the long-term contracts is approximately 2.3 years, and the average length remaining on those contracts at December 31, 2014, was 11 months. Approximately $201.7 million of net accounts receivables at December 31, 2014, is expected to be collected within the next year and is related to customary fees and cost withholdings that will be paid upon milestone or contract completions, as well as final overhead rate settlements. | ||||||||
The company has entered into several regional uncommitted accounts receivable factoring programs with various financial institutions for certain receivables of the company. The programs are accounted for as true sales of the receivables, without recourse to Ball, and had combined limits of approximately $293 million at December 31, 2014. A total of $197.6 million and $137.5 million were sold under these programs as of December 31, 2014 and 2013, respectively. In addition, Latapack-Ball has non-recourse uncommitted accounts receivable factoring programs with a combined limit of approximately $8 million at December 31, 2014. There were no accounts receivable sold as of December 31, 2014, and $6.0 million was sold under this program as of December 31, 2013. | ||||||||
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventories | ||||||||
Inventories | ||||||||
7. Inventories | ||||||||
December 31, | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Raw materials and supplies | $ | 479.2 | $ | 465.6 | ||||
Work-in-process and finished goods | 579.2 | 609.6 | ||||||
Less inventory reserves | (41.7 | ) | (46.9 | ) | ||||
$ | 1,016.70 | $ | 1,028.30 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment | ||||||||
Property, Plant and Equipment | ||||||||
8. Property, Plant and Equipment | ||||||||
December 31, | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Land | $ | 64.6 | $ | 67.6 | ||||
Buildings | 973.4 | 980.9 | ||||||
Machinery and equipment | 3,612.50 | 3,647.80 | ||||||
Construction-in-progress | 382.7 | 232.9 | ||||||
5,033.20 | 4,929.20 | |||||||
Accumulated depreciation | (2,602.5 | ) | (2,556.9 | ) | ||||
$ | 2,430.70 | $ | 2,372.30 | |||||
Property, plant and equipment are stated at historical or acquired cost. Depreciation expense amounted to $239.5 million, $261.3 million and $248.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
Goodwill
Goodwill | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill | |||||||||||||||||
Goodwill | |||||||||||||||||
9. Goodwill | |||||||||||||||||
($ in millions) | Metal | Metal | Metal Food & | Aerospace & | Total | ||||||||||||
Beverage | Beverage | Household | Technologies | ||||||||||||||
Packaging, | Packaging, | Products | |||||||||||||||
Americas & | Europe | Packaging | |||||||||||||||
Asia | |||||||||||||||||
Balance at December 31, 2012 (a) | $ | 740.7 | $ | 993.2 | $ | 620.9 | $ | — | $ | 2,354.80 | |||||||
Business acquisitions and related opening balance sheet adjustments | — | — | (15.1 | ) | 8.6 | (6.5 | ) | ||||||||||
Effects of currency exchange rates | — | 44 | 7.4 | — | 51.4 | ||||||||||||
Balance at December 31, 2013 (a) | 740.7 | 1,037.20 | 613.2 | 8.6 | 2,399.70 | ||||||||||||
Business disposition | (1.2 | ) | — | — | — | (1.2 | ) | ||||||||||
Effects of currency exchange rates | — | (123.3 | ) | (20.7 | ) | — | (144.0 | ) | |||||||||
Balance at December 31, 2014 | $ | 739.5 | $ | 913.9 | $ | 592.5 | $ | 8.6 | $ | 2,254.50 | |||||||
(a) | 2012 and 2013 amounts have been revised; further details are included in the “Revision of Prior Period Financial Statements Related to Deferred Taxes” section of Note 1. | ||||||||||||||||
Intangibles_and_Other_Assets
Intangibles and Other Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Intangibles and Other Assets | ||||||||
Intangibles and Other Assets | ||||||||
10. Intangibles and Other Assets | ||||||||
December 31, | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Investments in affiliates | $ | 33.2 | $ | 33.7 | ||||
Intangible assets (net of accumulated amortization of $115.2 million and $93.7 million at December 31, 2014 and 2013, respectively) | 137.1 | 166.1 | ||||||
Capitalized software (net of accumulated amortization of $103.8 million and $91.3 million at December 31, 2014 and 2013, respectively) | 62.6 | 65.0 | ||||||
Company and trust-owned life insurance | 168.1 | 150.9 | ||||||
Deferred financing costs | 36.3 | 46.2 | ||||||
Long-term deferred tax assets | 66.5 | 36.5 | ||||||
Other | 68.5 | 79.1 | ||||||
$ | 572.3 | $ | 577.5 | |||||
Total amortization expense of intangible assets amounted to $41.4 million, $38.6 million and $34.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. Based on intangible asset values and currency exchange rates as of December 31, 2014, total annual intangible asset amortization expense is expected to be $38.2 million, $34.4 million, $30.5 million, $25.3 million and $17.7 million for the years 2015 through 2019, respectively, and $49.5 million combined for all years thereafter. | ||||||||
In the fourth quarter 2014, the company recorded a provision against the balance of a long-term receivable of $16.5 million as a result of the financial difficulties of a metal food and household products packaging segment customer (see Note 5). | ||||||||
Leases
Leases | 12 Months Ended |
Dec. 31, 2014 | |
Leases | |
Leases | |
11. Leases | |
The company leases warehousing and manufacturing space and certain equipment in the packaging segments and office and technical space in the aerospace and technologies segment. Certain of the company’s leases in effect at December 31, 2014, include renewal options and/or escalation clauses for adjusting lease expense based on various factors. Under the company’s lease arrangements, Ball has the option to purchase the leased equipment at the end of the lease term, or if the company elects not to do so, to compensate the lessors for the difference between the fair market value of the equipment and the guaranteed minimum residual value. The company’s maximum risk under these lease agreements was approximately $27.0 million as of December 31, 2014. | |
Total noncancellable operating leases in effect at December 31, 2014, require rental payments of $37.0 million, $25.3 million, $20.1 million, $15.3 million and $10.3 million for the years 2015 through 2019, respectively, and $30.2 million combined for all years thereafter. Lease expense for all operating leases was $81.2 million, $73.2 million and $70.2 million in 2014, 2013 and 2012, respectively. | |
Debt_and_Interest_Costs
Debt and Interest Costs | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt and Interest Costs | ||||||||
Debt and Interest Costs | ||||||||
12. Debt and Interest Costs | ||||||||
Long-term debt and interest rates in effect consisted of the following: | ||||||||
December 31, | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Notes Payable | ||||||||
7.375% Senior Notes, due September 2019 | $ | — | $ | 315.4 | ||||
6.75% Senior Notes, due September 2020 | 500 | 500 | ||||||
5.75% Senior Notes, due May 2021 | 500 | 500 | ||||||
5.00% Senior Notes, due March 2022 | 750 | 750 | ||||||
4.00% Senior Notes, due November 2023 | 1,000.00 | 1,000.00 | ||||||
Senior Credit Facilities, due June 2018 (at variable rates) | ||||||||
Term B Loan, British sterling denominated (2013 - 2.11%) | — | 60.8 | ||||||
Term C Loan, euro denominated (2014 - 1.65%; 2013 - 1.86%) | 92.9 | 111.2 | ||||||
Multi-currency revolver, euro denominated | — | 96.6 | ||||||
Latapack-Ball Notes Payable, denominated in various currencies (2014 - 4.14%; 2013 - 3.58%) | 204.2 | 215.8 | ||||||
Other (including discounts and premiums) | 1.7 | (2.0 | ) | |||||
3,048.80 | 3,547.80 | |||||||
Less: Current portion of long-term debt | (55.0 | ) | (365.3 | ) | ||||
$ | 2,993.80 | $ | 3,182.50 | |||||
The senior credit facilities bear interest at variable rates and include the term loans described in the table above, as well as a long-term, multi-currency committed revolving credit facility that provides the company with up to the U.S. dollar equivalent of $1 billion. In June 2013, the company amended the senior credit facilities and extended the term from December 2015 to June 2018. In connection with the amendment, the company recorded a charge of $0.4 million for the write off of unamortized financing costs. The charge is included as a component of interest expense in the consolidated statement of earnings. | ||||||||
At December 31, 2014, taking into account outstanding letters of credit and excluding availability under the accounts receivable securitization program, approximately $984 million was available under the company’s long-term, multi-currency committed revolving credit facilities, which are available until June 2018. In addition to these facilities, the company had approximately $790 million of short-term uncommitted credit facilities available at December 31, 2014, of which $10.1 million was outstanding and due on demand. At December 31, 2013, the company had $57.3 million outstanding under short-term uncommitted credit facilities. The weighted average interest rate of the outstanding short-term facilities was 1.5 percent at December 31, 2014, and was insignificant at December 31, 2013. | ||||||||
Short-term debt and current portion of long-term debt on the balance sheet includes the company’s borrowings under its existing accounts receivable securitization agreement, totaling $110 million at December 31, 2014. There were no accounts receivable sold at December 31, 2013. This agreement, which has been amended and extended from time to time, is scheduled to mature in June 2017 and allows the company to borrow against a maximum amount of accounts receivable that varies between $85 million and $175 million depending on the seasonal accounts receivable balance in the company’s North American packaging businesses. | ||||||||
In December 2013, Ball announced the redemption of its outstanding 7.375 percent senior notes due in September 2019 in the amount of $315.4 million. The redemption occurred on January 10, 2014, at a price per note of 108.01 percent of the outstanding principal amount plus accrued interest. The redemption of the bonds resulted in a pretax charge in the first quarter of 2014 of $33.1 million for the call premium and the write off of unamortized financing costs and premiums. These charges are included as a component of interest expense in the consolidated statement of earnings. | ||||||||
In May 2013, Ball: (1) issued $1 billion of 4.00 percent senior notes due in November 2023; (2) tendered for the redemption of its 7.125 percent senior notes originally due in September 2016 in the amount of $375 million, at a redemption price per note of 105.322 percent of the outstanding principal amount plus accrued interest; and (3) repaid the $125 million Term A loan, which was a component of the senior credit facilities. The redemption of the senior notes, all of which occurred in the second quarter, and the early repayment of the Term A loan resulted in charges of $26.5 million for the tender and call premiums, as well as the write off of unamortized financing costs and issuance discounts. These charges are included as a component of interest expense in the consolidated statement of earnings. | ||||||||
On March 9, 2012, Ball issued $750 million of 5.00 percent senior notes due in March 2022. On the same date, the company tendered for the redemption of its 6.625 percent senior notes originally due in March 2018 in the amount of $450 million, at a redemption price per note of 102.583 percent of the outstanding principal amount plus accrued interest. The redemption of the bonds resulted in a charge of $15.1 million for the call premium and the write off of unamortized financing costs and premiums. The charge is included as a component of interest expense in the consolidated statement of earnings. | ||||||||
The fair value of the long-term debt was estimated to be $3.1 billion at December 31, 2014, which approximated the carrying value of $3.0 billion. The fair value was estimated to be $3.5 billion at December 31, 2013, which approximated the carrying value of $3.5 billion. The fair value reflects the market rates at each period end for debt with credit ratings similar to the company’s ratings and is classified as Level 2 within the fair value hierarchy. Rates currently available to the company for loans with similar terms and maturities are used to estimate the fair value of long-term debt based on discounted cash flows. | ||||||||
Long-term debt obligations outstanding at December 31, 2014, have maturities of $55.0 million, $62.4 million, $102.8 million, $53.1 million and $13.5 million in the years ending December 31, 2015 through 2019, respectively, and $2,762.0 million thereafter. Ball provides letters of credit in the ordinary course of business to secure liabilities recorded in connection with certain self-insurance arrangements. Letters of credit outstanding at December 31, 2014 and 2013, were $16.3 million and $16.5 million, respectively. Interest payments were $168.6 million, $187.5 million and $177.3 million in 2014, 2013 and 2012, respectively. | ||||||||
The senior notes and senior credit facilities are guaranteed on a full, unconditional and joint and several basis by certain of the company’s wholly owned domestic subsidiaries. Certain foreign denominated tranches of the senior credit facilities are similarly guaranteed by certain of the company’s wholly owned foreign subsidiaries. Note 22 contains further details, as well as required condensed consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries as defined in the senior notes agreements. | ||||||||
The U.S. note agreements, bank credit agreement and accounts receivable securitization agreement contain certain restrictions relating to dividend payments, share repurchases, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The most restrictive of the company’s debt covenants require the company to maintain an interest coverage ratio (as defined in the agreements) of no less than 3.50 and a leverage ratio (as defined) of no greater than 4.00. The company was in compliance with all loan agreements and debt covenants at December 31, 2014 and 2013, and has met all debt payment obligations. | ||||||||
The Latapack-Ball debt facilities contain various covenants and restrictions but are non-recourse to Ball Corporation and its wholly owned subsidiaries. | ||||||||
Taxes_on_Income
Taxes on Income | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Taxes on Income | |||||||||||
Taxes on Income | |||||||||||
13. Taxes on Income | |||||||||||
The amount of earnings before income taxes is: | |||||||||||
Years Ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||
U.S. | $ | 279.7 | $ | 242.9 | $ | 295.8 | |||||
Foreign | 365.9 | 340.7 | 299.8 | ||||||||
$ | 645.6 | $ | 583.6 | $ | 595.6 | ||||||
The provision for income tax expense is: | |||||||||||
Years Ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||
Current | |||||||||||
U.S. | $ | 50.8 | $ | 47.2 | $ | 54.7 | |||||
State and local | 17.7 | 3.6 | 15 | ||||||||
Foreign | 69.5 | 100.4 | 81.3 | ||||||||
Total current | 138 | 151.2 | 151 | ||||||||
Deferred | |||||||||||
U.S. | 8.9 | 28.5 | 25.7 | ||||||||
State and local | (1.1 | ) | (0.7 | ) | 5 | ||||||
Foreign | 4.1 | (29.4 | ) | (9.5 | ) | ||||||
Total deferred (a) | 11.9 | (1.6 | ) | 21.2 | |||||||
Tax provision | $ | 149.9 | $ | 149.6 | $ | 172.2 | |||||
(a) | Amounts do not include tax benefits (expense) related to discontinued operations of $(0.2) million and $1.7 million in 2013 and 2012, respectively. | ||||||||||
The income tax provision recorded within the consolidated statements of earnings differs from the provision determined by applying the U.S. statutory tax rate to pretax earnings as a result of the following: | |||||||||||
Years Ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||
Statutory U.S. federal income tax | $ | 226 | $ | 204.3 | $ | 208.5 | |||||
Increase (decrease) due to: | |||||||||||
Foreign tax rate differences | (57.3 | ) | (45.5 | ) | (36.9 | ) | |||||
U.S. state and local taxes, net | 6.9 | 1.6 | 12.2 | ||||||||
U.S. taxes on foreign earnings, net of tax credits | 11.8 | 26.4 | 14.5 | ||||||||
U.S. manufacturing deduction | (6.8 | ) | (4.3 | ) | (7.1 | ) | |||||
U.S. research and development tax credits | (8.5 | ) | (17.9 | ) | (5.3 | ) | |||||
Uncertain tax positions, including interest | (7.9 | ) | (3.4 | ) | (10.3 | ) | |||||
Company and trust-owned life insurance | (4.9 | ) | (6.3 | ) | (5.5 | ) | |||||
Other, net | (9.4 | ) | (5.3 | ) | 2.1 | ||||||
Provision for taxes | $ | 149.9 | $ | 149.6 | $ | 172.2 | |||||
Effective tax rate expressed as a percentage of pretax earnings | 23.2 | % | 25.6 | % | 28.9 | % | |||||
The 2014 full year effective income tax rate was 23.2 percent compared to 2013 of 25.6 percent. The lower tax rate in 2014 was primarily the result of a higher foreign tax rate differential, lower U.S. taxes on foreign earnings and the 2014 releases of uncertain tax positions which exceeded those occurring in 2013, partially offset by lower 2014 U.S. research and development tax credits. | |||||||||||
The decrease in the 2013 full year effective tax rate of 25.6 percent as compared to 2012 of 28.9 percent was primarily due to the retroactive extension of the U.S. research and development credit, a lower state effective tax rate and a higher foreign tax rate differential, partially offset by higher U.S. taxes on foreign earnings and the 2012 releases of uncertain tax positions which exceeded those occurring in 2013. | |||||||||||
Ball’s Serbian subsidiary was granted an income tax holiday that applies to only a portion of earnings and will expire at the end of 2015. In addition, in 2010 the Serbian subsidiary was granted a tax credit equal to 80 percent of additional local investment with a ten-year period that will expire in 2022. The credit may be used to offset tax on earnings not covered by the initial tax holiday and has $21 million remaining as of December 31, 2014. In 2011 and 2012, Ball’s Brazilian joint venture was granted two tax holidays expiring in 2021 and 2022. Under the terms of the holidays, a certain portion of Brazil earnings receive a 19 percent tax exemption. | |||||||||||
Due to the U.S. tax status of certain Ball subsidiaries in Canada and the PRC, the company annually provides U.S. taxes on foreign earnings in those subsidiaries, net of any estimated foreign tax credits. The company also provides deferred taxes on the undistributed earnings in its Brazil investment related to its 10 percent indirectly held investment. Current taxes are also provided on certain other undistributed earnings that are currently taxed in the U.S. Net U.S. taxes primarily provided for Brazil, Canada and PRC earnings in 2014, 2013 and 2012 were $11.8 million, $26.4 million and $14.5 million, respectively. Management’s intention is to indefinitely reinvest undistributed earnings of Ball’s remaining foreign investments and, as a result, no U.S. income or federal withholding tax provision has been made. The indefinite reinvestment assertion is supported by both long-term and short-term forecasts and U.S. financial requirements, including, but not limited to, operating cash flows, capital expenditures, debt maturities and dividends. The company has not provided deferred taxes on earnings in certain non-U.S. subsidiaries because such earnings are intended to be indefinitely reinvested in its international operations. Retained earnings in non-U.S. subsidiaries was $1,799.4 million as of December 31, 2014. It is not practical to estimate the additional taxes that may become payable upon the eventual remittance of these foreign earnings to the U.S.; however, repatriation of these earnings could result in a material increase in the company’s effective tax rate or if the intention to indefinitely reinvest is discontinued. | |||||||||||
Net income tax payments were $163.2 million, $111.4 million and $143.9 million in 2014, 2013 and 2012, respectively. | |||||||||||
The significant components of deferred tax assets and liabilities were: | |||||||||||
December 31, | |||||||||||
($ in millions) | 2014 | 2013 | |||||||||
Deferred tax assets: | |||||||||||
Deferred compensation | $ | 105.7 | $ | 104.1 | |||||||
Accrued employee benefits | 128.1 | 130.6 | |||||||||
Plant closure costs | 3.4 | 15.2 | |||||||||
Accrued pensions | 175.5 | 88.9 | |||||||||
Inventory and other reserves | 19.4 | 24.3 | |||||||||
Net operating losses, foreign tax credits and other tax attributes | 108.8 | 96 | |||||||||
Unrealized losses on currency exchange and derivative transactions | 24.4 | 29.5 | |||||||||
Other | 26.2 | 30 | |||||||||
Total deferred tax assets | 591.5 | 518.6 | |||||||||
Valuation allowance | (92.4 | ) | (85.0 | ) | |||||||
Net deferred tax assets | 499.1 | 433.6 | |||||||||
Deferred tax liabilities: | |||||||||||
Property, plant and equipment | (242.4 | ) | (244.2 | ) | |||||||
Goodwill and other intangible assets | (141.1 | ) | (144.0 | ) | |||||||
Other | (30.2 | ) | (15.1 | ) | |||||||
Total deferred tax liabilities | (413.7 | ) | (403.3 | ) | |||||||
Net deferred tax asset (liability) | $ | 85.4 | $ | 30.3 | |||||||
The net deferred tax asset (liability) was included in the consolidated balance sheets as follows: | |||||||||||
December 31, | |||||||||||
($ in millions) | 2014 | 2013 | |||||||||
Deferred taxes and other current assets | $ | 54.9 | $ | 83.2 | |||||||
Intangibles and other assets, net | 66.5 | 36.5 | |||||||||
Other current liabilities | (3.6 | ) | (3.0 | ) | |||||||
Deferred taxes and other liabilities | (32.4 | ) | (86.4 | ) | |||||||
Net deferred tax asset | $ | 85.4 | $ | 30.3 | |||||||
At December 31, 2014, Ball’s European subsidiaries had net operating loss carryforwards, with no expiration date, of $54.0 million with a related tax benefit of $13.1 million. Ball’s Canadian subsidiaries had net operating loss carryforwards, expiring between 2027 and 2034, of $101.7 million with a related tax benefit of $27.0 million. Ball’s Mexican subsidiary had net operating loss carryforwards of $23.2 million with a related tax benefit of $7.0 million expiring between 2021 and 2024. Due to the uncertainty of ultimate realization, the European and Canadian benefits have been fully offset by valuation allowances while the Mexican net operating losses are expected to be fully utilized. At December 31, 2014, the company had foreign tax credit carryforwards of $59.0 million expiring between 2015 and 2024; however, due to the uncertainty of realization, the benefit has been fully offset by a valuation allowance. | |||||||||||
A rollforward of the unrecognized tax benefits related to uncertain income tax positions at December 31 follows: | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||
Balance at January 1 | $ | 78.3 | $ | 76.6 | $ | 57.4 | |||||
Additions based on tax positions related to the current year | 1.4 | 1.7 | 31.3 | ||||||||
Additions for tax positions of prior years | 7.7 | 5.5 | 6.2 | ||||||||
Reductions for settlements | — | (7.2 | ) | (19.8 | ) | ||||||
Reductions due to lapse of statute of limitations | (16.5 | ) | (0.2 | ) | — | ||||||
Effect of foreign currency exchange rates | (5.4 | ) | 1.9 | 1.5 | |||||||
Balance at December 31 | $ | 65.5 | $ | 78.3 | $ | 76.6 | |||||
The annual provisions for income taxes included tax benefits, including interest, of $7.9 million, $3.4 million and $10.3 million in 2014, 2013 and 2012, respectively. | |||||||||||
At December 31, 2014, the amount of unrecognized tax benefits that, if recognized, would reduce tax expense was $76.7 million. Within the next 12 months, it is reasonably possible that unrecognized tax benefits may decrease by as much as $20.5 million as a result of settlements with various taxing jurisdictions. The company and its subsidiaries file various income tax returns in the U.S. federal, various states, local and foreign jurisdictions. The U.S. federal statute of limitations is closed for years prior to 2011. With a few exceptions, the company is no longer subject to state and local or foreign examinations by tax authorities for years prior to 2007. The company’s significant non-U.S. filings are in Germany, France, the United Kingdom, the Netherlands, Poland, Serbia, the PRC, Canada, Brazil, the Czech Republic, Mexico and Argentina. At December 31, 2014, the company had ongoing examinations by tax authorities in Germany, the United Kingdom, Hong Kong and Canada. | |||||||||||
The company recognizes the accrual of interest and penalties related to unrecognized tax benefits in income tax expense. Ball recognized $1.3 million, $2.7 million and $2.8 million of additional income tax expense in 2014, 2013 and 2012, respectively, for potential interest on these items. At December 31, 2014 and 2013, the accrual for uncertain tax positions included potential interest expense of $11.2 million and $10.4 million, respectively. No penalties have been accrued. | |||||||||||
Employee_Benefit_Obligations
Employee Benefit Obligations | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Employee Benefit Obligations | |||||||||||||||||||||||||||||
Employee Benefit Obligations | |||||||||||||||||||||||||||||
14. Employee Benefit Obligations | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||||||||||||||||||
Underfunded defined benefit pension liabilities | $ | 724.1 | $ | 601.9 | |||||||||||||||||||||||||
Less current portion and prepaid pension assets | (19.4 | ) | (21.4 | ) | |||||||||||||||||||||||||
Long-term defined benefit pension liabilities | 704.7 | 580.5 | |||||||||||||||||||||||||||
Retiree medical and other postemployment benefits | 169 | 165.9 | |||||||||||||||||||||||||||
Deferred compensation plans | 272.2 | 257.1 | |||||||||||||||||||||||||||
Other | 32.4 | 29.5 | |||||||||||||||||||||||||||
$ | 1,178.30 | $ | 1,033.00 | ||||||||||||||||||||||||||
The company’s pension plans cover U.S., Canadian and European employees meeting certain eligibility requirements. The defined benefit plans for salaried employees, as well as those for hourly employees in Germany and the United Kingdom, provide pension benefits based on employee compensation and years of service. Plans for North American hourly employees provide benefits based on fixed rates for each year of service. While the German plans are not funded, the company maintains book reserves, and annual additions to the reserves are generally tax deductible. With the exception of the German plans, our policy is to fund the plans in amounts at least sufficient to satisfy statutory funding requirements taking into consideration what is currently deductible under existing tax laws and regulations. | |||||||||||||||||||||||||||||
The company also participates in multi-employer defined benefit plans for which Ball is not the sponsor. The aggregated annual 2014 expense for these plans of $2.0 million, which approximated the total annual funding, is included in the summary of net periodic benefit cost. The risks of participating in multi-employer pension plans are different from single-employer plans. Assets contributed to a multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. In the event that Ball withdraws from participation in one of these plans, then applicable law could require the company to make additional lump-sum contributions to the plan. The company’s withdrawal liability for any multi-employer defined benefit pension plan would depend on the extent of the plan’s funding of vested benefits. Additionally, if a multi-employer defined benefit pension plan fails to satisfy certain minimum funding requirements, the IRS may impose a nondeductible excise tax of 5 percent on the amount of the accumulated funding deficiency for those employers contributing to the plan. | |||||||||||||||||||||||||||||
In 2014, the company updated the mortality tables used to calculate its U.S. defined benefit pension and other postretirement benefit liabilities. In October 2014, the Society of Actuaries’ Retirement Plans Experience Committee (RPEC) released new mortality tables known as RP 2014. The new tables released by the RPEC reflected substantial life expectancy improvements. The company evaluated the new mortality tables and chose to value its U.S. defined benefit pension and other postretirement benefit liabilities using an alternative assumption of future mortality based on past history that is more representative of the company’s expectations around future improvements in mortality rates for the plan participants. The company’s assumptions reflect anticipated future improvements in mortality rates. This alternative assumption was determined to be credible by the company’s actuaries and meets professional actuarial standards. | |||||||||||||||||||||||||||||
Defined Benefit Pension Plans | |||||||||||||||||||||||||||||
An analysis of the change in benefit accruals for 2014 and 2013 follows: | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
($ in millions) | U.S. | Foreign | Total | U.S. | Foreign | Total | |||||||||||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||||||||||||||
Benefit obligation at prior year end | $ | 1,284.20 | $ | 704.6 | $ | 1,988.80 | $ | 1,373.60 | $ | 660 | $ | 2,033.60 | |||||||||||||||||
Service cost | 46.3 | 13.4 | 59.7 | 48.7 | 12.1 | 60.8 | |||||||||||||||||||||||
Interest cost | 62 | 25.7 | 87.7 | 55.2 | 24 | 79.2 | |||||||||||||||||||||||
Benefits paid | (51.4 | ) | (32.7 | ) | (84.1 | ) | (75.4 | ) | (32.2 | ) | (107.6 | ) | |||||||||||||||||
Net actuarial (gains) losses | 184 | 105.4 | 289.4 | (122.2 | ) | 18.3 | (103.9 | ) | |||||||||||||||||||||
Effect of exchange rates | — | (73.2 | ) | (73.2 | ) | — | 19.2 | 19.2 | |||||||||||||||||||||
Settlements/curtailments/special termination | (102.8 | ) | — | (102.8 | ) | 3.5 | 1.7 | 5.2 | |||||||||||||||||||||
Plan amendments and other | (6.2 | ) | — | (6.2 | ) | 0.8 | 1.5 | 2.3 | |||||||||||||||||||||
Benefit obligation at year end | 1,416.10 | 743.2 | 2,159.30 | 1,284.20 | 704.6 | 1,988.80 | |||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||
Fair value of assets at prior year end | 1,109.50 | 277.4 | 1,386.90 | 952 | 261.4 | 1,213.40 | |||||||||||||||||||||||
Actual return on plan assets | 48.4 | 65.2 | 113.6 | 76.2 | 6.6 | 82.8 | |||||||||||||||||||||||
Employer contributions | 94.3 | 26.9 | 121.2 | 157.5 | 16.3 | 173.8 | |||||||||||||||||||||||
Contributions to unfunded | |||||||||||||||||||||||||||||
German plans (a) | — | 22.2 | 22.2 | — | 22.5 | 22.5 | |||||||||||||||||||||||
Benefits paid | (51.4 | ) | (32.7 | ) | (84.1 | ) | (75.4 | ) | (32.2 | ) | (107.6 | ) | |||||||||||||||||
Effect of exchange rates | — | (21.8 | ) | (21.8 | ) | — | 1.8 | 1.8 | |||||||||||||||||||||
Settlements | (102.8 | ) | — | (102.8 | ) | (0.8 | ) | — | (0.8 | ) | |||||||||||||||||||
Other | — | — | — | — | 1 | 1 | |||||||||||||||||||||||
Fair value of assets at end of year | 1,098.00 | 337.2 | 1,435.20 | 1,109.50 | 277.4 | 1,386.90 | |||||||||||||||||||||||
Underfunded status | $ | (318.1 | ) | $ | (406.0 | )(a) | $ | (724.1 | ) | $ | (174.7 | ) | $ | (427.2 | )(a) | $ | (601.9 | ) | |||||||||||
(a) | The German plans are unfunded and the liability is included in the company’s consolidated balance sheets. Benefits are paid directly by the company to the participants. The German plans represented $393.9 million and $370.3 million of the total unfunded status at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets for the funded status consisted of: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
($ in millions) | U.S. | Foreign | Total | U.S. | Foreign | Total | |||||||||||||||||||||||
Prepaid pension cost | $ | — | $ | 1.8 | $ | 1.8 | $ | — | $ | 2.3 | $ | 2.3 | |||||||||||||||||
Defined benefit pension liabilities | (318.1 | ) | (407.8 | ) | (725.9 | ) | (174.7 | ) | (429.5 | ) | (604.2 | ) | |||||||||||||||||
$ | (318.1 | ) | $ | (406.0 | ) | $ | (724.1 | ) | $ | (174.7 | ) | $ | (427.2 | ) | $ | (601.9 | ) | ||||||||||||
Amounts recognized in accumulated other comprehensive earnings (loss) consisted of: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
($ in millions) | U.S. | Foreign | Total | U.S. | Foreign | Total | |||||||||||||||||||||||
Net actuarial loss | $ | 606.3 | $ | 183 | $ | 789.3 | $ | 462.9 | $ | 153 | $ | 615.9 | |||||||||||||||||
Net prior service cost (credit) | 7.9 | (1.9 | ) | 6 | 13.9 | (2.4 | ) | 11.5 | |||||||||||||||||||||
Tax effect and currency exchange rates | (239.0 | ) | (50.1 | ) | (289.1 | ) | (187.0 | ) | (47.3 | ) | (234.3 | ) | |||||||||||||||||
$ | 375.2 | $ | 131 | $ | 506.2 | $ | 289.8 | $ | 103.3 | $ | 393.1 | ||||||||||||||||||
The accumulated benefit obligation for all U.S. defined benefit pension plans was $1,355.2 million and $1,236.7 million at December 31, 2014 and 2013, respectively. The accumulated benefit obligation for all foreign defined benefit pension plans was $675.1 million and $628.2 million at December 31, 2014 and 2013, respectively. Following is the information for defined benefit plans with an accumulated benefit obligation in excess of plan assets: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
($ in millions) | U.S. | Foreign | Total | U.S. | Foreign | Total | |||||||||||||||||||||||
Projected benefit obligation | $ | 1,416.0 | $ | 440.2 | $ | 1,856.2 | $ | 1,284.1 | $ | 415.2 | $ | 1,699.3 | |||||||||||||||||
Accumulated benefit obligation | 1,355.2 | 411.1 | 1,766.3 | 1,236.7 | 393.4 | 1,630.1 | |||||||||||||||||||||||
Fair value of plan assets | 1,098.0 | 40.5 | (a) | 1,138.5 | 1,109.5 | 40.1 | (a) | 1,149.6 | |||||||||||||||||||||
(a) | The German plans are unfunded and, therefore, there is no fair value of plan assets associated with them. The unfunded status of those plans was $393.9 million and $370.3 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||
Components of net periodic benefit cost were: | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
($ in millions) | U.S. | Foreign | Total | U.S. | Foreign | Total | U.S. | Foreign | Total | ||||||||||||||||||||
Ball-sponsored plans: | |||||||||||||||||||||||||||||
Service cost | $ | 46.3 | $ | 13.4 | $ | 59.7 | $ | 48.7 | $ | 12.1 | $ | 60.8 | $ | 47 | $ | 7.9 | $ | 54.9 | |||||||||||
Interest cost | 62 | 25.7 | 87.7 | 55.2 | 24 | 79.2 | 56.5 | 28.7 | 85.2 | ||||||||||||||||||||
Expected return on plan assets | (82.6 | ) | (17.0 | ) | (99.6 | ) | (77.3 | ) | (16.7 | ) | (94.0 | ) | (73.9 | ) | (16.9 | ) | (90.8 | ) | |||||||||||
Amortization of prior service cost | (0.1 | ) | (0.5 | ) | (0.6 | ) | — | (0.4 | ) | (0.4 | ) | 0.9 | (0.4 | ) | 0.5 | ||||||||||||||
Recognized net actuarial loss | 29.5 | 8.2 | 37.7 | 42.5 | 7.8 | 50.3 | 33.7 | 7 | 40.7 | ||||||||||||||||||||
Curtailment and settlement losses (gains), including special termination benefits | 45.3 | — | 45.3 | 6.1 | 1.7 | 7.8 | (0.1 | ) | 25.7 | 25.6 | |||||||||||||||||||
Net periodic benefit cost for Ball-sponsored plans | 100.4 | 29.8 | 130.2 | 75.2 | 28.5 | 103.7 | 64.1 | 52 | 116.1 | ||||||||||||||||||||
Multi-employer plans: | |||||||||||||||||||||||||||||
Net periodic benefit cost, excluding curtailment loss | 2 | — | 2 | 2.6 | — | 2.6 | 2.7 | — | 2.7 | ||||||||||||||||||||
Curtailment and settlement losses (gains) | — | — | — | 9.8 | — | 9.8 | — | — | — | ||||||||||||||||||||
Net periodic benefit cost for multi-employer plans | 2 | — | 2 | 12.4 | — | 12.4 | 2.7 | — | 2.7 | ||||||||||||||||||||
Total net periodic benefit cost | $ | 102.4 | $ | 29.8 | $ | 132.2 | $ | 87.6 | $ | 28.5 | $ | 116.1 | $ | 66.8 | $ | 52 | $ | 118.8 | |||||||||||
In September 2014, the company executed a lump sum buyout offer to certain terminated vested pension plan participants in its U.S. defined benefit pension plans. The offer provides participants with a one-time election to receive a lump-sum payout in full settlement of their remaining pension benefit. The company recorded a non-cash charge of $45.3 million for the settlement of its pension benefit obligations in connection with this offer in 2014, based on pension asset values and liabilities at the time of the settlement. | |||||||||||||||||||||||||||||
Curtailment losses in 2013 are related to the closure of the company’s Elgin, Illinois, facility and the migration of certain of the company’s Weirton, West Virginia, hourly employees from a multi-employer defined benefit pension plan to a Ball-sponsored defined benefit pension plan as of January 1, 2014. Further details are available in Note 5. | |||||||||||||||||||||||||||||
In November 2012, the company purchased annuities with pension trust assets to settle the liabilities in certain of its Canadian defined benefit pension plans. In connection with the settlements, the company recorded a charge in the fourth quarter of $27.1 million, which primarily represents previously unrecognized losses included in accumulated other comprehensive earnings (loss). | |||||||||||||||||||||||||||||
The estimated actuarial net gain (loss) and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive earnings (loss) into net periodic benefit cost during 2015 are a loss of $49.3 million and a gain of $1.4 million, respectively. | |||||||||||||||||||||||||||||
Contributions to the company’s defined benefit pension plans, not including the unfunded German plans, are expected to be insignificant in 2015. This estimate may change based on changes in the Pension Protection Act and actual plan asset performance and available company cash flow, among other factors. Benefit payments related to these plans are expected to be $91.6 million, $94.9 million, $98.8 million, $102.1 million and $106.0 million for the years ending December 31, 2015 through 2019, respectively, and a total of $572.8 million for the years 2020 through 2024. Payments to participants in the unfunded German plans are expected to be approximately $18 million to $20 million in each of the years 2015 through 2019 and a total of $87 million for the years 2020 through 2024. | |||||||||||||||||||||||||||||
Weighted average assumptions used to determine benefit obligations for the North American plans at December 31 were: | |||||||||||||||||||||||||||||
U.S. | Canada | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Discount rate | 4.15 | % | 5.00 | % | 4.13 | % | 3.50 | % | 4.25 | % | 4.00 | % | |||||||||||||||||
Rate of compensation increase | 4.80 | % | 4.80 | % | 4.80 | % | 3.00 | % | 3.00 | % | 3.00 | % | |||||||||||||||||
Weighted average assumptions used to determine benefit obligations for the European plans at December 31 were: | |||||||||||||||||||||||||||||
United Kingdom | Germany | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Discount rate | 3.75 | % | 4.50 | % | 4.50 | % | 1.75 | % | 3.25 | % | 3.25 | % | |||||||||||||||||
Rate of compensation increase | 3.00 | % | 4.25 | % | 3.75 | % | 2.50 | % | 2.75 | % | 2.75 | % | |||||||||||||||||
Pension increase | 3.15 | % | 3.40 | % | 2.90 | % | 1.75 | % | 1.75 | % | 1.75 | % | |||||||||||||||||
The discount and compensation increase rates used above to determine the benefit obligations at December 31, 2014, will be used to determine net periodic benefit cost for 2015. A reduction of the expected return on pension assets assumption by one quarter of a percentage point would result in an approximate $3.6 million increase in the 2015 pension expense, while a quarter of a percentage point reduction in the discount rate applied to the pension liability would result in estimated additional pension expense of $5.4 million in 2015. | |||||||||||||||||||||||||||||
Weighted average assumptions used to determine net periodic benefit cost for the North American plans for the years ended December 31 were: | |||||||||||||||||||||||||||||
U.S. | Canada | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Discount rate | 5.00 | % | 4.13 | % | 4.75 | % | 4.25 | % | 4.00 | % | 4.05 | % | |||||||||||||||||
Rate of compensation increase | 4.80 | % | 4.80 | % | 4.80 | % | 3.00 | % | 3.00 | % | 3.00 | % | |||||||||||||||||
Expected long-term rate of return on assets | 7.25 | % | 7.63 | % | 7.75 | % | 4.56 | % | 4.55 | % | 4.53 | % | |||||||||||||||||
Weighted average assumptions used to determine net periodic benefit cost for the European plans for the years ended December 31 were: | |||||||||||||||||||||||||||||
United Kingdom | Germany | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Discount rate | 4.50 | % | 4.50 | % | 5.00 | % | 3.25 | % | 3.25 | % | 5.00 | % | |||||||||||||||||
Rate of compensation increase | 4.25 | % | 3.75 | % | 3.90 | % | 2.75 | % | 2.75 | % | 2.75 | % | |||||||||||||||||
Pension increase | 3.40 | % | 2.90 | % | 3.05 | % | 1.75 | % | 1.75 | % | 1.75 | % | |||||||||||||||||
Expected long-term rate of return on assets | 6.50 | % | 7.00 | % | 7.00 | % | N/A | N/A | N/A | ||||||||||||||||||||
Current financial accounting standards require that the discount rates used to calculate the actuarial present value of pension and other postretirement benefit obligations reflect the time value of money as of the measurement date of the benefit obligation and reflect the rates of return currently available on high quality fixed income securities whose cash flows (via coupons and maturities) match the timing and amount of future benefit payments of the plan. In addition, changes in the discount rate assumption should reflect changes in the general level of interest rates. | |||||||||||||||||||||||||||||
In selecting the U.S. discount rate for December 31, 2014, several benchmarks were considered, including Moody’s long-term corporate bond yield for A bonds, the Citigroup Pension Liability Index, the JP Morgan 15+ year corporate bond yield for A bonds and the Merrill Lynch 15+ year corporate bond yield for A bonds. In addition, the expected cash flows from the plans were modeled relative to the Citigroup Pension Discount Curve and matched to cash flows from a portfolio of bonds rated A or better. When determining the appropriate discount rate, the company contemplated the impact of lump sum payment options under its U.S. plans when considering the appropriate yield curve. In Canada the markets for locally denominated high-quality, longer term corporate bonds are relatively thin. As a result, the approach taken in Canada was to use yield curve spot rates to discount the respective benefit cash flows and to compute the underlying constant bond yield equivalent. The Canadian discount rate at December 31, 2014, was selected based on a review of the expected benefit payments for each of the Canadian defined benefit plans over the next 60 years and then discounting the resulting cash flows to the measurement date using the AA corporate bond spot rates to determine the equivalent level discount rate. In the United Kingdom and Germany, the company and its actuarial consultants considered the applicable iBoxx 15+ year AA corporate bond yields for the respective markets and determined a rate consistent with those expectations. In all countries, the discount rates selected for December 31, 2014, were based on the range of values obtained from cash flow specific methods, together with the changes in the general level of interest rates reflected by the benchmarks. | |||||||||||||||||||||||||||||
The assumption related to the expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested to provide for the benefits over the life of the plans. The assumption was based upon Ball’s pension plan asset allocations, investment strategies and the views of investment managers and other large pension plan sponsors. Some reliance was placed on historical asset returns of our plans. An asset-return model was used to project future asset returns using simulation and asset class correlation. The analysis included expected future risk premiums, forward-looking return expectations derived from the yield on long-term bonds and the price earnings ratios of major stock market indexes, expected inflation and real risk-free interest rate assumptions and the fund’s expected asset allocation. | |||||||||||||||||||||||||||||
The expected long-term rates of return on assets were calculated by applying the expected rate of return to a market related value of plan assets at the beginning of the year, adjusted for the weighted average expected contributions and benefit payments. The market related value of plan assets used to calculate expected return was $1,470.9 million for 2014, $1,238.5 million for 2013 and $1,179.8 million for 2012. | |||||||||||||||||||||||||||||
For pension plans, accumulated actuarial gains and losses in excess of a 10 percent corridor and the prior service cost are amortized over the average remaining service period of active participants. | |||||||||||||||||||||||||||||
Defined Benefit Pension Plan Assets | |||||||||||||||||||||||||||||
Policies and Allocation Information | |||||||||||||||||||||||||||||
Investment policies and strategies for the plan assets in the U.S., Canada and the United Kingdom are established by pension investment committees of the company and its relevant subsidiaries and include the following common themes: (1) to provide for long-term growth of principal without undue exposure to risk, (2) to minimize contributions to the plans, (3) to minimize and stabilize pension expense and (4) to achieve a rate of return above the market average for each asset class over the long term. The pension investment committees are required to regularly, but no less frequently than once annually, review asset mix and asset performance, as well as the performance of the investment managers. Based on their reviews, which are generally conducted quarterly, investment policies and strategies are revised as appropriate. | |||||||||||||||||||||||||||||
Target asset allocations in the U.S. and Canada are set using a minimum and maximum range for each asset category as a percent of the total funds’ market value. Assets contributed to the United Kingdom plans are invested using established percentages. Following are the target asset allocations established as of December 31, 2014: | |||||||||||||||||||||||||||||
U.S. | Canada | United Kingdom (c) | |||||||||||||||||||||||||||
Cash and cash equivalents | 0-10% | 0-2% | — | ||||||||||||||||||||||||||
Equity securities | 10-75% | (a) | 8-12% | 25 | % | ||||||||||||||||||||||||
Fixed income securities | 25-70% | (b) | 88-92% | 61 | % | ||||||||||||||||||||||||
Absolute return investments | — | — | 6 | % | |||||||||||||||||||||||||
Alternative investments | 0-35% | — | 8 | % | |||||||||||||||||||||||||
(a) | Equity securities may consist of: (1) up to 25 percent large cap equities, (2) up to 10 percent mid cap equities, (3) up to 10 percent small cap equities, (4) up to 35 percent foreign equities and (5) up to 35 percent special equities. Holdings in Ball Corporation common stock or Ball bonds cannot exceed 5 percent of the trust’s assets. | ||||||||||||||||||||||||||||
(b) | Debt securities may include up to 10 percent non-investment grade bonds, up to 10 percent bank loans and up to 15 percent international bonds. | ||||||||||||||||||||||||||||
(c) | The percentages provided reflect the asset allocation percentage at December 31, 2014. The portfolio mix is expected to be adjusted over time toward more fixed income securities. | ||||||||||||||||||||||||||||
The actual weighted average asset allocations for Ball’s defined benefit pension plans, which individually were within the established targets for each country for that year, were as follows at December 31: | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Cash and cash equivalents | 3 | % | 6 | % | |||||||||||||||||||||||||
Equity securities | 38 | % | 37 | % | |||||||||||||||||||||||||
Fixed income securities | 50 | % | 49 | % | |||||||||||||||||||||||||
Alternative investments | 9 | % | 8 | % | |||||||||||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||||||||||
Fair Value Measurements of Pension Plan Assets | |||||||||||||||||||||||||||||
Following is a description of the valuation methodologies used for pension assets measured at fair value: | |||||||||||||||||||||||||||||
Cash and cash equivalents: Consist of cash on deposit with brokers and short-term U.S. Treasury money market funds and are net of receivables and payables for securities traded at the period end but not yet settled. All cash and cash equivalents are stated at cost, which approximates fair value. | |||||||||||||||||||||||||||||
Corporate equity securities: Valued at the closing price reported on the active market on which the individual security is traded. | |||||||||||||||||||||||||||||
U.S. government and agency securities: Valued using the pricing of similar agency issues, live trading feeds from several vendors and benchmark yields. | |||||||||||||||||||||||||||||
Corporate bonds and notes: Valued using market inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and reference data including market research publications. Inputs may be prioritized differently at certain times based on market conditions. | |||||||||||||||||||||||||||||
Commingled funds: The shares held are valued at the net asset value (NAV) at year end. | |||||||||||||||||||||||||||||
Limited partnerships and other: Certain of the partnership investments receive fair market valuations on a quarterly basis. Certain other partnerships invest in market-traded securities, both on a long and short basis. These investments are valued using quoted market prices. For the partnership that invests in timber properties, a detailed valuation is performed by an independent appraisal firm every three years. In the interim years, the investment manager updates the independently prepared valuation for property value changes, timber growth, harvesting, etc. | |||||||||||||||||||||||||||||
The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. | |||||||||||||||||||||||||||||
The company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The levels assigned to the defined benefit plan assets are summarized in the tables below: | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
U.S. pension assets, at fair value: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 0.9 | $ | 88.7 | $ | — | $ | 89.6 | |||||||||||||||||||||
Corporate equity securities: | |||||||||||||||||||||||||||||
Consumer discretionary | 53.8 | — | — | 53.8 | |||||||||||||||||||||||||
Industrials | 58.7 | — | — | 58.7 | |||||||||||||||||||||||||
Information technology | 57.5 | — | — | 57.5 | |||||||||||||||||||||||||
Other | 116.6 | 34.4 | — | 151.0 | |||||||||||||||||||||||||
U.S. government and agency securities: | |||||||||||||||||||||||||||||
FHLMC mortgage backed securities | — | 14.7 | — | 14.7 | |||||||||||||||||||||||||
FNMA mortgage backed securities | — | 49.9 | — | 49.9 | |||||||||||||||||||||||||
Other | 49.1 | 13.1 | — | 62.2 | |||||||||||||||||||||||||
Corporate bonds and notes: | |||||||||||||||||||||||||||||
Financials | — | 96.5 | — | 96.5 | |||||||||||||||||||||||||
Oil and gas | — | 33.4 | — | 33.4 | |||||||||||||||||||||||||
Private placement | — | 44.8 | — | 44.8 | |||||||||||||||||||||||||
Other | — | 113.5 | — | 113.5 | |||||||||||||||||||||||||
Commingled funds | |||||||||||||||||||||||||||||
International | 19.5 | 68.7 | — | 88.2 | |||||||||||||||||||||||||
Other | 3.3 | 50.3 | — | 53.6 | |||||||||||||||||||||||||
Limited partnerships and other | — | 67.6 | 63.0 | 130.6 | |||||||||||||||||||||||||
Total assets | $ | 359.4 | $ | 675.6 | $ | 63.0 | $ | 1,098.0 | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
U.S. pension assets, at fair value: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 0.5 | $ | 149.8 | $ | — | $ | 150.3 | |||||||||||||||||||||
Corporate equity securities: | |||||||||||||||||||||||||||||
Industrials | 54.7 | — | — | 54.7 | |||||||||||||||||||||||||
Information technology | 55.3 | — | — | 55.3 | |||||||||||||||||||||||||
Other | 156.7 | 30.8 | — | 187.5 | |||||||||||||||||||||||||
U.S. government and agency securities: | |||||||||||||||||||||||||||||
FHLMC mortgage backed securities | — | 17.5 | — | 17.5 | |||||||||||||||||||||||||
FNMA mortgage backed securities | — | 43.1 | — | 43.1 | |||||||||||||||||||||||||
Other | 35.7 | 15.6 | — | 51.3 | |||||||||||||||||||||||||
Corporate bonds and notes: | |||||||||||||||||||||||||||||
Financials | — | 105.2 | — | 105.2 | |||||||||||||||||||||||||
Utilities | — | 37.4 | — | 37.4 | |||||||||||||||||||||||||
Private placement | — | 45.4 | — | 45.4 | |||||||||||||||||||||||||
Other | 0.2 | 108.2 | — | 108.4 | |||||||||||||||||||||||||
Commingled funds | 23.2 | 111.5 | — | 134.7 | |||||||||||||||||||||||||
Limited partnerships and other | — | 66.8 | 51.9 | 118.7 | |||||||||||||||||||||||||
Total assets | $ | 326.3 | $ | 731.3 | $ | 51.9 | $ | 1,109.5 | |||||||||||||||||||||
The following is a reconciliation of the U.S. Level 3 assets for the two years ended December 31, 2014 (dollars in millions): | |||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 48.9 | |||||||||||||||||||||||||||
Actual return on plan assets relating to assets still held at the reporting date | 2 | ||||||||||||||||||||||||||||
Purchases | 5.9 | ||||||||||||||||||||||||||||
Sales | (4.9 | ) | |||||||||||||||||||||||||||
Balance at December 31, 2013 | 51.9 | ||||||||||||||||||||||||||||
Actual return on plan assets relating to assets still held at the reporting date | 9.5 | ||||||||||||||||||||||||||||
Purchases | 9.1 | ||||||||||||||||||||||||||||
Sales | (7.5 | ) | |||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 63 | |||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||||||||||||||||||
Canadian pension assets, at fair value (all Level 2): | |||||||||||||||||||||||||||||
Equity commingled funds | $ | 3.9 | $ | 4.2 | |||||||||||||||||||||||||
Fixed income commingled funds | 34.5 | 35.6 | |||||||||||||||||||||||||||
Fixed income securities | 8.7 | 9.5 | |||||||||||||||||||||||||||
Total assets | $ | 47.1 | $ | 49.3 | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||||||||||||||||||
U.K. pension assets, at fair value (all Level 2): | |||||||||||||||||||||||||||||
Equity commingled funds | $ | 71.3 | $ | 56.2 | |||||||||||||||||||||||||
Fixed income commingled funds | 174.1 | 134.9 | |||||||||||||||||||||||||||
Absolute return funds | 17.2 | 18.0 | |||||||||||||||||||||||||||
Alternative investments | 22.8 | 15.8 | |||||||||||||||||||||||||||
Net assets | $ | 285.4 | $ | 224.9 | |||||||||||||||||||||||||
Other Postemployment Benefits | |||||||||||||||||||||||||||||
The company sponsors postretirement health care and life insurance plans for substantially all U.S. and Canadian employees. Employees may also qualify for long-term disability, medical and life insurance continuation and other postemployment benefits upon termination of active employment prior to retirement. All of the Ball-sponsored postretirement health care and life insurance plans are unfunded and, with the exception of life insurance benefits, are self-insured. | |||||||||||||||||||||||||||||
In Canada, the company provides supplemental medical and other benefits in conjunction with Canadian provincial health care plans. Most U.S. salaried employees who retired prior to 1993 are covered by noncontributory defined benefit medical plans with capped lifetime benefits. Ball provides a fixed subsidy toward each retiree’s future purchase of medical insurance for U.S. salaried and substantially all nonunion hourly employees retiring after January 1, 1993. Life insurance benefits are noncontributory. Ball has no commitments to increase benefits provided by any of the postemployment benefit plans. | |||||||||||||||||||||||||||||
An analysis of the change in other postretirement benefit accruals for 2014 and 2013 follows: | |||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||
Benefit obligation at prior year end | $ | 155.4 | $ | 168.2 | |||||||||||||||||||||||||
Service cost | 1.4 | 1.7 | |||||||||||||||||||||||||||
Interest cost | 7.3 | 6.6 | |||||||||||||||||||||||||||
Benefits paid | (11.4 | ) | (12.5 | ) | |||||||||||||||||||||||||
Net actuarial (gain) loss | 3.1 | (9.1 | ) | ||||||||||||||||||||||||||
Special termination benefits | — | 1.9 | |||||||||||||||||||||||||||
Effect of exchange rates and other | (1.7 | ) | (1.4 | ) | |||||||||||||||||||||||||
Benefit obligation at year end | $ | 154.1 | $ | 155.4 | |||||||||||||||||||||||||
Components of net periodic benefit cost were: | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Service cost | $ | 1.4 | $ | 1.7 | $ | 1.6 | |||||||||||||||||||||||
Interest cost | 7.3 | 6.6 | 7.4 | ||||||||||||||||||||||||||
Amortization of prior service cost | (0.5 | ) | (0.5 | ) | (0.1 | ) | |||||||||||||||||||||||
Recognized net actuarial loss (gain) | (1.5 | ) | (0.6 | ) | (1.0 | ) | |||||||||||||||||||||||
Special termination benefits | — | 1.9 | — | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | 6.7 | $ | 9.1 | $ | 7.9 | |||||||||||||||||||||||
Approximately $1.1 million of estimated net actuarial gain and $0.6 million of prior service benefit will be amortized from accumulated other comprehensive earnings (loss) into net periodic benefit cost during 2015. | |||||||||||||||||||||||||||||
The assumptions used for the determination of benefit obligations and net periodic benefit cost were the same as those used for the U.S. and Canadian defined benefit pension plans. For other postretirement benefits, accumulated actuarial gains and losses and prior service cost are amortized over the average remaining service period of active participants. | |||||||||||||||||||||||||||||
For the U.S. health care plans at December 31, 2014, an 8 percent health care cost trend rate was used for pre-65 and post-65 benefits, and trend rates were assumed to decrease to 5 percent in 2022 and remain at that level thereafter. For the Canadian plans, a 4.25 percent health care cost trend rate was used, which was assumed to increase to 5 percent by 2018 and remain at that level in subsequent years. Benefit payment caps exist in many of the company’s health care plans. | |||||||||||||||||||||||||||||
Health care cost trend rates can have an effect on the amounts reported for the health care plan. A one-percentage point increase in assumed health care cost trend rates would increase the total of service and interest cost by $0.3 million and the postretirement benefit obligation by $4.7 million. A one-percentage point decrease would decrease the total of service and interest cost by $0.2 million and the postretirement benefit obligation by $4.3 million. | |||||||||||||||||||||||||||||
Deferred Compensation Plans | |||||||||||||||||||||||||||||
Certain management employees may elect to defer the payment of all or a portion of their annual incentive compensation into the company’s deferred compensation plan and/or the company’s deferred compensation stock plan. The employee becomes a general unsecured creditor of the company with respect to amounts deferred. Amounts deferred into the deferred compensation stock plan receive a 20 percent company match with a maximum match of $20,000 per year. Amounts deferred into the stock plan are represented in the participant’s account as stock units, with each unit having a value equivalent to one share of Ball’s common stock. Participants in the stock plan are allowed to reallocate a prescribed number of units to other notional investment funds subject to specified time constraints. | |||||||||||||||||||||||||||||
Other Benefit Plans | |||||||||||||||||||||||||||||
The company matches U.S. salaried employee contributions to the 401(k) plan with shares of Ball common stock up to 100 percent of the first 3 percent of a participant’s salary plus 50 percent of the next 2 percent. The expense associated with the company match amounted to $23.6 million, $23.5 million and $21.8 million for 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
In addition, substantially all employees within the company’s aerospace and technologies segment who participate in Ball’s 401(k) plan may receive a performance-based matching cash contribution of up to 4 percent of base salary. The company recognized $4.7 million and $9.2 million of additional compensation expense related to this program for 2014 and 2012, respectively. There was no additional compensation expense recognized in 2013. | |||||||||||||||||||||||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Shareholders' Equity | ||||||||||||||
Shareholders' Equity | ||||||||||||||
15. Shareholders’ Equity | ||||||||||||||
At December 31, 2014, the company had 550 million shares of common stock and 15 million shares of preferred stock authorized, both without par value. Preferred stock includes 550,000 authorized but unissued shares designated as Series A Junior Participating Preferred Stock. | ||||||||||||||
Under the company’s shareholder Rights Agreement dated July 26, 2006, as amended, one half of a preferred stock purchase right (Right) is attached to each outstanding share of Ball Corporation common stock. Subject to adjustment, each Right entitles the registered holder to purchase from the company one one-thousandth of a share of Series A Junior Participating Preferred Stock at an exercise price of $185 per Right. Subject to certain limited exceptions for passive investors, if a person or group acquires 10 percent or more of the company’s outstanding common stock (or upon occurrence of certain other events), the Rights (other than those held by the acquiring person) become exercisable and generally entitle the holder to purchase shares of Ball Corporation common stock at a 50 percent discount. The Rights, which expire in 2016, are redeemable by the company at a redemption price of $0.001 per Right and trade with the common stock. Exercise of such Rights would cause substantial dilution to a person or group attempting to acquire control of the company without the approval of Ball’s board of directors. The Rights would not interfere with any merger or other business combinations approved by the board of directors. | ||||||||||||||
The company’s share repurchases, net of issuances, totaled $360.1 million in 2014, $398.8 million in 2013 and $494.1 million in 2012. | ||||||||||||||
In March 2014, in a privately negotiated transaction, Ball entered into an accelerated share repurchase agreement to buy $100 million of its common shares using cash on hand and available borrowings. The company advanced the $100 million on March 7, 2014, and received 1,538,740 shares, which represented 85 percent of the total shares as calculated using the closing price on March 3, 2014. The agreement was settled in June 2014, and the company received an additional 245,196 shares, which represented a weighted average price of $56.06 for the entire contract price. | ||||||||||||||
In February 2012, in a privately negotiated transaction, Ball entered into an accelerated share repurchase agreement to buy $200 million of its common shares using cash on hand and available borrowings. The company advanced the $200 million on February 3, 2012, and received 4,584,819 shares, which represented 90 percent of the total shares as calculated using the closing price on January 31, 2012. The agreement was settled in May 2012, and the company received an additional 334,039 shares, which represented a weighted average price of $40.66 for the contract period. | ||||||||||||||
Accumulated Other Comprehensive Earnings (Loss) | ||||||||||||||
The activity related to accumulated other comprehensive earnings (loss) was as follows: | ||||||||||||||
($ in millions) | Foreign | Pension and | Effective | Accumulated | ||||||||||
Currency | Other | Derivatives | Other | |||||||||||
Translation | Postretirement | (Net of Tax) | Comprehensive | |||||||||||
Benefits | Earnings (Loss) | |||||||||||||
(Net of Tax) | ||||||||||||||
December 31, 2012 (a) | $ | 118.3 | $ | (471.5 | ) | $ | (8.9 | ) | $ | (362.1 | ) | |||
Other comprehensive earnings (loss) before reclassifications | 62.4 | 49.1 | (51.3 | ) | 60.2 | |||||||||
Amounts reclassified from accumulated other comprehensive earnings (loss) | — | 30.6 | 21.4 | 52 | ||||||||||
December 31, 2013 (a) | 180.7 | (391.8 | ) | (38.8 | ) | (249.9 | ) | |||||||
Other comprehensive earnings (loss) before reclassifications | (199.1 | ) | (159.4 | ) | 4.3 | (354.2 | ) | |||||||
Amounts reclassified from accumulated other comprehensive earnings (loss) | — | 51.3 | 30.7 | 82 | ||||||||||
December 31, 2014 | $ | (18.4 | ) | $ | (499.9 | ) | $ | (3.8 | ) | $ | (522.1 | ) | ||
(a) | 2013 and 2012 amounts have been revised; further details are included in the “Revision of Prior Period Financial Statements Related to Deferred Taxes” section of Note 1. | |||||||||||||
The following table provides additional details of the amounts recognized into net earnings from accumulated other comprehensive earnings (loss): | ||||||||||||||
December 31, | ||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||
Gains (losses) on cash flow hedges: | ||||||||||||||
Commodity contracts recorded in net sales | $ | (6.2 | ) | $ | 8.4 | |||||||||
Commodity contracts and currency exchange contracts recorded in cost of sales | (27.2 | ) | (35.9 | ) | ||||||||||
Interest rate contracts recorded in interest expense | — | (1.0 | ) | |||||||||||
Total before tax effect | (33.4 | ) | (28.5 | ) | ||||||||||
Tax benefit (expense) on amounts reclassified into earnings | 2.7 | 7.1 | ||||||||||||
Recognized gain (loss) | $ | (30.7 | ) | $ | (21.4 | ) | ||||||||
Amortization of pension and other postretirement benefits (a): | ||||||||||||||
Prior service income (cost) | $ | 0.6 | $ | 1 | ||||||||||
Actuarial gains (losses) | (36.8 | ) | (49.8 | ) | ||||||||||
Effect of pension settlement | (45.3 | ) | — | |||||||||||
Total before tax effect | (81.5 | ) | (48.8 | ) | ||||||||||
Tax benefit (expense) on amounts reclassified into earnings | 30.2 | 18.2 | ||||||||||||
Recognized gain (loss) | $ | (51.3 | ) | $ | (30.6 | ) | ||||||||
(a) | These components are included in the computation of net periodic benefit cost included in Note 14. | |||||||||||||
StockBased_Compensation_Progra
Stock-Based Compensation Programs | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Stock-Based Compensation Programs | ||||||||
Stock-Based Compensation Programs | ||||||||
16. Stock-Based Compensation Programs | ||||||||
The company has shareholder-approved stock plans under which options and stock-settled appreciation rights (SSARs) have been granted to employees at the market value of the company’s stock at the date of grant. In the case of stock options, payment must be made by the employee at the time of exercise in cash or with shares of stock owned by the employee, which are valued at fair market value on the date exercised. For SSARs, the employee receives the share equivalent of the difference between the fair market value on the date exercised and the exercise price of the SSARs exercised. In general, options and SSARs are exercisable in four equal installments commencing one year from the date of grant and terminating 10 years from the date of grant. A summary of stock option activity for the year ended December 31, 2014, follows: | ||||||||
Outstanding Options and SSARs | ||||||||
Number of | Weighted | |||||||
Shares | Average | |||||||
Exercise Price | ||||||||
Beginning of year | 10,058,729 | $ | 29.68 | |||||
Granted | 1,361,390 | 49.07 | ||||||
Exercised | (1,481,368 | ) | 25.37 | |||||
Canceled/forfeited | (200,721 | ) | 43.18 | |||||
End of period | 9,738,030 | 32.76 | ||||||
Vested and exercisable, end of period | 6,728,435 | 27.46 | ||||||
Reserved for future grants | 10,428,157 | |||||||
The weighted average remaining contractual term for all options and SSARs outstanding at December 31, 2014, was 5.5 years and the aggregate intrinsic value (difference in exercise price and closing price at that date) was $344.8 million. The weighted average remaining contractual term for options and SSARs vested and exercisable at December 31, 2014, was 4.4 years and the aggregate intrinsic value was $273.9 million. The company received $22.9 million from options exercised during 2014, and the intrinsic value associated with these exercises was $31.4 million. The tax benefit associated with the company’s stock compensation programs was $17.5 million for 2014, and was reported as other financing activities in the consolidated statement of cash flows. The total fair value of options and SSARs vested during 2014, 2013 and 2012 was $13.3 million, $11.4 million and $10.5 million, respectively. | ||||||||
These options and SSARs cannot be traded in any equity market. However, based on the Black-Scholes option pricing model, options and SSARs granted in 2014, 2013 and 2012 have estimated weighted average fair values at the date of grant of $9.81 per share, $8.69 per share and $9.44 per share, respectively. The actual value an employee may realize will depend on the excess of the stock price over the exercise price on the date the option or SSAR is exercised. Consequently, there is no assurance that the value realized by an employee will be at or near the value estimated. The fair values were estimated using the following weighted average assumptions: | ||||||||
2014 Grants | 2013 Grants | 2012 Grants | ||||||
Expected dividend yield | 1.06% | 1.13% | 1.06% | |||||
Expected stock price volatility | 21.41% | 22.02% | 30.22% | |||||
Risk-free interest rate | 1.65% | 1.02% | 0.84% | |||||
Expected life of options (in years) | 5.50 years | 5.50 years | 5.26 years | |||||
In addition to stock options and SSARs, the company issues to certain employees restricted shares and restricted stock units, which vest over various periods. Other than the performance-contingent grants discussed below, such restricted shares and restricted stock units generally vest in equal installments over five years. Compensation cost is recorded based upon the fair value of the shares at the grant date. | ||||||||
Following is a summary of restricted stock activity for the year ended December 31, 2014: | ||||||||
Number of | Weighted | |||||||
Shares/Units | Average Grant | |||||||
Price | ||||||||
Beginning of year | 1,441,014 | $ | 31.94 | |||||
Granted | 212,695 | 51.65 | ||||||
Vested | (385,291 | ) | 35.92 | |||||
Canceled/forfeited | (47,757 | ) | 40.55 | |||||
End of period | 1,220,661 | 33.92 | ||||||
In January 2014 and 2013, the company’s board of directors granted 143,305 and 148,875 performance-contingent restricted stock units (PCEQs), respectively, to key employees. These PCEQs vest three years from the date of grant, and the number of shares available at the vesting date are based on the company’s growth in economic valued added (EVA®) dollars in excess of the EVA® dollars generated in the calendar year prior to grant as the minimum threshold, and ranging from zero and 200 percent of each participant’s assigned award opportunity. If the minimum performance goals are not met, the shares will be forfeited. Grants under the plan are being accounted for as equity awards and compensation expense is recorded based upon the most probable outcome using the closing market price of the shares at the grant date. On a quarterly basis, the company reassesses the probability of the goals being met and adjusts compensation expense as appropriate. The expense associated with the performance-contingent grants totaled $6.9 million, $7.6 million and $8.2 million in 2014, 2013 and 2012, respectively. | ||||||||
For the years ended December 31, 2014, 2013 and 2012, the company recognized in selling, general and administrative expenses pretax expense of $25.1 million ($15.6 million after tax), $24.5 million ($14.9 million after tax) and $26.7 million ($16.2 million after tax), respectively, for share-based compensation arrangements. At December 31, 2014, there was $29.4 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements. This cost is expected to be recognized in earnings over a weighted average period of 2.2 years. | ||||||||
In connection with the employee stock purchase plan, the company contributes 20 percent of each participating employee’s monthly payroll deduction up to a maximum contribution of $500 toward the purchase of Ball Corporation common stock. Company contributions for this plan were $3.5 million in 2014, $3.5 million in 2013 and $3.6 million in 2012. | ||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share | |||||||||||
Earnings Per Share | |||||||||||
17. Earnings Per Share | |||||||||||
Years Ended December 31, | |||||||||||
($ in millions, except per share amounts; shares in thousands) | 2014 | 2013 | 2012 | ||||||||
Net earnings attributable to Ball Corporation | $ | 470.0 | $ | 406.8 | $ | 396.3 | |||||
Basic weighted average common shares | 138,508 | 145,943 | 154,648 | ||||||||
Effect of dilutive securities | 3,922 | 3,280 | 3,436 | ||||||||
Weighted average shares applicable to diluted earnings per share | 142,430 | 149,223 | 158,084 | ||||||||
Basic earnings per share | $ | 3.39 | $ | 2.79 | $ | 2.56 | |||||
Diluted earnings per share | $ | 3.30 | $ | 2.73 | $ | 2.50 | |||||
Certain outstanding options and SSARs were excluded from the diluted earnings per share calculation because they were anti-dilutive (i.e., the sum of the proceeds, including the unrecognized compensation and windfall tax benefits, exceeded the average closing stock price for the period). The options and SSARs excluded totaled 1.3 million in 2013 and 1.4 million in 2012. There were no options or SSARs excluded in 2014. | |||||||||||
Financial_Instruments_and_Risk
Financial Instruments and Risk Management | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Financial Instruments and Risk Management | ||||||||||||||||||||
Financial Instruments and Risk Management | ||||||||||||||||||||
18. Financial Instruments and Risk Management | ||||||||||||||||||||
Policies and Procedures | ||||||||||||||||||||
The company employs established risk management policies and procedures, which seek to reduce the company’s commercial risk exposure to fluctuations in commodity prices, interest rates, currency exchange rates and prices of the company’s common stock with regard to common share repurchases and the company’s deferred compensation stock plan. However, there can be no assurance that these policies and procedures will be successful. Although the instruments utilized involve varying degrees of credit, market and interest risk, the counterparties to the agreements are expected to perform fully under the terms of the agreements. The company monitors counterparty credit risk, including lenders, on a regular basis, but Ball cannot be certain that all risks will be discerned or that its risk management policies and procedures will always be effective. Additionally, in the event of default under the company’s master derivative agreements, the non-defaulting party has the option to set-off any amounts owed with regard to open derivative positions. | ||||||||||||||||||||
Commodity Price Risk | ||||||||||||||||||||
Aluminum | ||||||||||||||||||||
The company manages commodity price risk in connection with market price fluctuations of aluminum ingot through two different methods. First, the company enters into container sales contracts that include aluminum ingot-based pricing terms that generally reflect the same price fluctuations under commercial purchase contracts for aluminum sheet. The terms include fixed, floating or pass-through aluminum ingot component pricing. Second, the company uses certain derivative instruments such as option and forward contracts as economic and cash flow hedges of commodity price risk where there are material differences between sales and purchase contracted pricing and volume. | ||||||||||||||||||||
At December 31, 2014, the company had aluminum contracts limiting its aluminum exposure with notional amounts of approximately $389 million, of which approximately $305 million received hedge accounting treatment. The aluminum contracts, which are recorded at fair value, include economic derivative instruments that are undesignated, as well as cash flow hedges that offset sales and purchase contracts of various terms and lengths. Cash flow hedges relate to forecasted transactions that expire within the next three years. Included in shareholders’ equity at December 31, 2014, within accumulated other comprehensive earnings (loss) is a net after-tax loss of $3.2 million associated with these contracts. A net loss of $1.1 million is expected to be recognized in the consolidated statement of earnings during the next 12 months, the majority of which will be offset by pricing changes in sales and purchase contracts, thus resulting in little or no earnings impact to Ball. | ||||||||||||||||||||
Steel | ||||||||||||||||||||
Most sales contracts involving our steel products either include provisions permitting the company to pass through some or all steel cost changes incurred, or they incorporate annually negotiated steel prices. | ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
The company’s objective in managing exposure to interest rate changes is to minimize the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, the company may use a variety of interest rate swaps, collars and options to manage our mix of floating and fixed-rate debt. Interest rate instruments held by the company at December 31, 2014, included pay-fixed interest rate swaps, which effectively convert variable rate obligations to fixed-rate instruments. | ||||||||||||||||||||
At December 31, 2014, the company had outstanding interest rate swap contracts with notional amounts of approximately $158 million paying fixed rates expiring within the next five years. The after-tax loss included in shareholders’ equity at December 31, 2014, within accumulated other comprehensive earnings (loss) is insignificant. | ||||||||||||||||||||
Currency Exchange Rate Risk | ||||||||||||||||||||
The company’s objective in managing exposure to currency fluctuations is to limit the exposure of cash flows and earnings from changes associated with currency exchange rate changes through the use of various derivative contracts. In addition, at times the company manages earnings translation volatility through the use of currency option strategies, and the change in the fair value of those options is recorded in the company’s net earnings. The company’s currency translation risk results from the currencies in which we transact business. The company faces currency exposures in our global operations as a result of various factors including intercompany currency denominated loans, selling our products in various currencies, purchasing raw materials and equipment in various currencies and tax exposures not denominated in the functional currency. Sales contracts are negotiated with customers to reflect cost changes and, where there is not an exchange pass-through arrangement, the company uses forward and option contracts to manage significant currency exposures. At December 31, 2014, the company had outstanding exchange forward contracts and option contracts with notional amounts totaling approximately $442 million. Approximately $0.4 million of net after-tax loss related to these contracts is included in accumulated other comprehensive earnings at December 31, 2014, of which a net loss of $1.3 million is expected to be recognized in the consolidated statement of earnings during the next 12 months. The contracts outstanding at December 31, 2014, expire within the next year. | ||||||||||||||||||||
Common Stock Price Risk | ||||||||||||||||||||
The company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is marked to fair value using the company’s closing stock price at the end of the related reporting period. Based on current share levels in the program, each $1 change in the company’s stock price has an impact of $1.3 million on pretax earnings. The company entered into a total return swap to reduce the company’s earnings exposure to these fair value fluctuations that will be outstanding until March 2015 and has a notional value of 1 million shares. As of December 31, 2014, the fair value of the swap was a $0.4 million loss. All gains and losses on the total return swap are recorded in the consolidated statement of earnings in selling, general and administrative expenses. | ||||||||||||||||||||
Collateral Calls | ||||||||||||||||||||
The company’s agreements with its financial counterparties require the company to post collateral in certain circumstances when the negative mark to fair value of the contracts exceeds specified levels. Additionally, the company has collateral posting arrangements with certain customers on these derivative contracts. The cash flows of the margin calls are shown within the investing section of the company’s consolidated statements of cash flows. As of December 31, 2014, the aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position was $12.4 million and no collateral was required to be posted. As of December 31, 2013, the aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position was $48.0 million and no collateral was required to be posted. | ||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
Ball has classified all applicable financial derivative assets and liabilities as Level 2 within the fair value hierarchy as of December 31, 2014 and 2013, and presented those values in the table below. The company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
($ in millions) | Derivatives | Derivatives not | Total | Derivatives | Derivatives not | Total | ||||||||||||||
Designated as | Designated as | Designated as | Designated as | |||||||||||||||||
Hedging | Hedging | Hedging | Hedging | |||||||||||||||||
Instruments | Instruments | Instruments | Instruments | |||||||||||||||||
Assets: | ||||||||||||||||||||
Commodity contracts | $ | 3.8 | $ | 1.3 | $ | 5.1 | $ | 2.6 | $ | 1.7 | $ | 4.3 | ||||||||
Foreign currency contracts | 0.8 | 3.5 | 4.3 | 0.2 | 1.5 | 1.7 | ||||||||||||||
Other contracts | — | — | — | — | 1.1 | 1.1 | ||||||||||||||
Total current derivative contracts | $ | 4.6 | $ | 4.8 | $ | 9.4 | $ | 2.8 | $ | 4.3 | $ | 7.1 | ||||||||
Commodity contracts | $ | 2.2 | $ | 0.5 | $ | 2.7 | $ | — | $ | — | $ | — | ||||||||
Foreign currency contracts | — | — | — | — | 0.1 | 0.1 | ||||||||||||||
Interest contracts | 0.4 | — | 0.4 | — | — | — | ||||||||||||||
Total noncurrent derivative contracts | $ | 2.6 | $ | 0.5 | $ | 3.1 | $ | — | $ | 0.1 | $ | 0.1 | ||||||||
Liabilities: | ||||||||||||||||||||
Commodity contracts | $ | 6.9 | $ | 1.6 | $ | 8.5 | $ | 19.2 | $ | 2.0 | $ | 21.2 | ||||||||
Foreign currency contracts | 1.6 | 1.3 | 2.9 | 1.5 | 6.1 | 7.6 | ||||||||||||||
Interest rate and other contracts | 0.5 | 0.4 | 0.9 | 0.8 | — | 0.8 | ||||||||||||||
Total current derivative contracts | $ | 9.0 | $ | 3.3 | $ | 12.3 | $ | 21.5 | $ | 8.1 | $ | 29.6 | ||||||||
Commodity contracts | $ | 6.8 | $ | 0.5 | $ | 7.3 | $ | 20.3 | $ | — | $ | 20.3 | ||||||||
Interest rate contracts | 0.3 | — | 0.3 | — | — | — | ||||||||||||||
Total noncurrent derivative contracts | $ | 7.1 | $ | 0.5 | $ | 7.6 | $ | 20.3 | $ | — | $ | 20.3 | ||||||||
The company uses closing spot and forward market prices as published by the London Metal Exchange, the Chicago Mercantile Exchange, Reuters and Bloomberg to determine the fair value of any outstanding aluminum, currency, energy, inflation and interest rate spot and forward contracts. Option contracts are valued using a Black-Scholes model with observable market inputs for aluminum, currency and interest rates. We value each of our financial instruments either internally using a single valuation technique or from a reliable observable market source. The company does not adjust the value of its financial instruments except in determining the fair value of a trade that settles in the future by discounting the value to its present value using 12-month LIBOR as the discount factor. Ball performs validations of our internally derived fair values reported for our financial instruments on a quarterly basis utilizing counterparty valuation statements. The company additionally evaluates counterparty creditworthiness and, as of December 31, 2014, has not identified any circumstances requiring that the reported values of our financial instruments be adjusted. | ||||||||||||||||||||
The following table provides the effects of derivative instruments in the consolidated statement of earnings and on accumulated other comprehensive earnings (loss): | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
($ in millions) | Cash Flow | Gain (Loss) on | Cash Flow | Gain (Loss) on | Cash Flow | Gain (Loss) on | ||||||||||||||
Hedge - | Derivatives not | Hedge - | Derivatives not | Hedge - | Derivatives not | |||||||||||||||
Reclassified | Designated as | Reclassified | Designated as | Reclassified | Designated as | |||||||||||||||
Amount from | Hedge | Amount from | Hedge | Amount from | Hedge | |||||||||||||||
Other | Instruments | Other | Instruments | Other | Instruments | |||||||||||||||
Comprehensive | Comprehensive | Comprehensive | ||||||||||||||||||
Earnings (Loss) - | Earnings (Loss) - | Earnings (Loss) - | ||||||||||||||||||
Gain (Loss) | Gain (Loss) | Gain (Loss) | ||||||||||||||||||
Commodity contracts (a) | $ | (33.6 | ) | $ | 4.4 | $ | (26.9 | ) | $ | (2.9 | ) | $ | (56.1 | ) | $ | 3.1 | ||||
Interest rate contracts (b) | — | — | (1.0 | ) | — | (0.5 | ) | — | ||||||||||||
Foreign currency contracts (c) | 0.2 | (25.0 | ) | (0.6 | ) | 7.3 | (1.2 | ) | (20.8 | ) | ||||||||||
Equity contracts (d) | — | (2.6 | ) | — | 0.5 | — | 3.2 | |||||||||||||
Inflation option contracts (e) | — | — | — | 0.1 | — | 0.1 | ||||||||||||||
Total | $ | (33.4 | ) | $ | (23.2 | ) | $ | (28.5 | ) | $ | 5 | $ | (57.8 | ) | $ | (14.4 | ) | |||
(a) | Gains and losses on commodity contracts are recorded in sales and cost of sales in the consolidated statements of earnings. Virtually all these expenses were passed through to our customers, resulting in no significant impact to earnings. | |||||||||||||||||||
(b) | Gains and losses on interest contracts are recorded in interest expense in the consolidated statements of earnings. | |||||||||||||||||||
(c) | Gains and losses on foreign currency contracts to hedge the sales of products are recorded in cost of sales. Gains and losses on foreign currency hedges used for transactions between segments are reflected in selling, general and administrative expenses in the consolidated statements of earnings. | |||||||||||||||||||
(d) | Gains and losses on equity contracts are recorded in selling, general and administrative expenses in the consolidated statements of earnings. | |||||||||||||||||||
(e) | Gains and losses on inflation option contracts are recorded in selling, general and administrative expenses in the consolidated statements of earnings. | |||||||||||||||||||
The changes in accumulated other comprehensive earnings (loss) for effective derivatives were as follows: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Amounts reclassified into earnings: | ||||||||||||||||||||
Commodity contracts | $ | 33.6 | $ | 26.9 | $ | 56.1 | ||||||||||||||
Interest rate contracts | — | 1 | 0.5 | |||||||||||||||||
Currency exchange contracts | (0.2 | ) | 0.6 | 1.2 | ||||||||||||||||
Change in fair value of cash flow hedges: | ||||||||||||||||||||
Commodity contracts | 4.1 | (61.6 | ) | (5.8 | ) | |||||||||||||||
Interest rate contracts | (0.3 | ) | 0.3 | (1.2 | ) | |||||||||||||||
Currency exchange contracts | 0.7 | 2.2 | (0.5 | ) | ||||||||||||||||
Foreign currency and tax impacts | (2.9 | ) | 0.7 | (20.8 | ) | |||||||||||||||
$ | 35 | $ | (29.9 | ) | $ | 29.5 | ||||||||||||||
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Results of Operations (Unaudited) | |||||||||||||||||
Quarterly Results of Operations (Unaudited) | |||||||||||||||||
19. Quarterly Results of Operations (Unaudited) | |||||||||||||||||
The company’s quarters in both 2014 and 2013 ended on March 31, June 30, September 30 and December 31. | |||||||||||||||||
($ in millions, except per share amounts) | First | Second | Third | Fourth | Total | ||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
2014 | |||||||||||||||||
Net sales | $ | 2,006.8 | $ | 2,291.9 | $ | 2,238.9 | $ | 2,032.4 | $ | 8,570.0 | |||||||
Gross profit (a) | 336.5 | 387.9 | 372.4 | 336.9 | 1,433.7 | ||||||||||||
Earnings before taxes | $ | 144.1 | $ | 215.3 | $ | 187.9 | $ | 98.3 | $ | 645.6 | |||||||
Net earnings attributable to Ball Corporation from continuing operations | $ | 93.5 | $ | 153.1 | $ | 147.4 | $ | 76.0 | $ | 470.0 | |||||||
Net earnings attributable to Ball Corporation | $ | 93.5 | $ | 153.1 | $ | 147.4 | $ | 76.0 | $ | 470.0 | |||||||
Basic earnings per share (b): | |||||||||||||||||
Continuing operations | $ | 0.67 | $ | 1.10 | $ | 1.07 | $ | 0.56 | $ | 3.39 | |||||||
Total | $ | 0.67 | $ | 1.10 | $ | 1.07 | $ | 0.56 | $ | 3.39 | |||||||
Diluted earnings per share (b): | |||||||||||||||||
Continuing operations | $ | 0.65 | $ | 1.07 | $ | 1.04 | $ | 0.54 | $ | 3.30 | |||||||
Total | $ | 0.65 | $ | 1.07 | $ | 1.04 | $ | 0.54 | $ | 3.30 | |||||||
2013 | |||||||||||||||||
Net sales | $ | 1,991.0 | $ | 2,202.4 | $ | 2,277.9 | $ | 1,996.8 | $ | 8,468.1 | |||||||
Gross profit (a) | 285.1 | 342.0 | 365.7 | 346.1 | 1,338.9 | ||||||||||||
Earnings before taxes | $ | 98.2 | $ | 129.1 | $ | 164.8 | $ | 191.5 | $ | 583.6 | |||||||
Net earnings attributable to Ball Corporation from continuing operations | $ | 71.9 | $ | 95.1 | $ | 114.9 | $ | 124.5 | $ | 406.4 | |||||||
Net earnings attributable to Ball Corporation | $ | 72.0 | $ | 95.1 | $ | 115.2 | $ | 124.5 | $ | 406.8 | |||||||
Basic earnings per share (b): | |||||||||||||||||
Continuing operations | $ | 0.48 | $ | 0.65 | $ | 0.80 | $ | 0.87 | $ | 2.79 | |||||||
Total | $ | 0.48 | $ | 0.65 | $ | 0.80 | $ | 0.87 | $ | 2.79 | |||||||
Diluted earnings per share (b): | |||||||||||||||||
Continuing operations | $ | 0.47 | $ | 0.63 | $ | 0.78 | $ | 0.85 | $ | 2.73 | |||||||
Total | $ | 0.47 | $ | 0.63 | $ | 0.78 | $ | 0.85 | $ | 2.73 | |||||||
(a) | Gross profit is shown after depreciation and amortization related to cost of sales of $232.8 million and $253.7 million for the years ended December 31, 2014 and 2013, respectively. | ||||||||||||||||
(b) | Earnings per share calculations for each quarter are based on the weighted average shares outstanding for that period. As a result, the sum of the quarterly amounts may not equal the annual earnings per share amount. | ||||||||||||||||
The unaudited quarterly results of operations included business consolidation and other activities that affected the company’s operating performance. Further details are included in Note 5. | |||||||||||||||||
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Contingencies | |
Contingencies | |
20. Contingencies | |
Ball is subject to numerous lawsuits, claims or proceedings arising out of the ordinary course of business, including actions related to product liability; personal injury; the use and performance of company products; warranty matters; patent, trademark or other intellectual property infringement; contractual liability; the conduct of the company’s business; tax reporting in domestic and foreign jurisdictions; workplace safety; and environmental and other matters. The company has also been identified as a potentially responsible party (PRP) at several waste disposal sites under U.S. federal and related state environmental statutes and regulations and may have joint and several liability for any investigation and remediation costs incurred with respect to such sites. Some of these lawsuits, claims and proceedings involve substantial amounts, including as described below, and some of the environmental proceedings involve potential monetary costs or sanctions that may be material. Ball has denied liability with respect to many of these lawsuits, claims and proceedings and is vigorously defending such lawsuits, claims and proceedings. The company carries various forms of commercial, property and casualty, and other forms of insurance; however, such insurance may not be applicable or adequate to cover the costs associated with a judgment against Ball with respect to these lawsuits, claims and proceedings. The company does not believe that these lawsuits, claims and proceedings are material individually or in the aggregate. While management believes the company has established adequate accruals for expected future liability with respect to pending lawsuits, claims and proceedings, where the nature and extent of any such liability can be reasonably estimated based upon then presently available information, there can be no assurance that the final resolution of any existing or future lawsuits, claims or proceedings will not have a material adverse effect on the liquidity, results of operations or financial condition of the company. | |
As previously reported, the U.S. Environmental Protection Agency (USEPA) considers the company a PRP with respect to the Lowry Landfill site located east of Denver, Colorado. In 1992, the company was served with a lawsuit filed by the City and County of Denver (Denver) and Waste Management of Colorado, Inc., seeking contributions from the company and approximately 38 other companies. The company filed its answer denying the allegations of the complaint. Subsequently in 1992, the company was served with a third-party complaint filed by S.W. Shattuck Chemical Company, Inc., seeking contribution from the company and other companies for the costs associated with cleaning up the Lowry Landfill. The company denied the allegations of the complaint. | |
Also in 1992, Ball entered into a settlement and indemnification agreement with Chemical Waste Management, Inc., and Waste Management of Colorado, Inc. (collectively Waste Management) and Denver pursuant to which Waste Management and Denver dismissed their lawsuit against the company, and Waste Management agreed to defend, indemnify and hold harmless the company from claims and lawsuits brought by governmental agencies and other parties relating to actions seeking contributions or remedial costs from the company for the cleanup of the site. Waste Management, Inc., has agreed to guarantee the obligations of Waste Management. Waste Management and Denver may seek additional payments from the company if the response costs related to the site exceed $319 million. In 2003 Waste Management, Inc., indicated that the cost of the site might exceed $319 million in 2030, approximately three years before the projected completion of the project. The company might also be responsible for payments (based on 1992 dollars) for any additional wastes that may have been disposed of by the company at the site but which are identified after the execution of the settlement agreement. While remediating the site, contaminants were encountered, which could add an additional cleanup cost of approximately $10 million. This additional cleanup cost could, in turn, add approximately $1 million to total site costs for the PRP group. At this time, there are no Lowry Landfill actions in which the company is actively involved. Based on the information available to the company at this time, we do not believe that this matter will have a material adverse effect upon the liquidity, results of operations or financial condition of the company. | |
In November 2012, the USEPA wrote to the company asserting that it is one of at least 50 PRPs with respect to the Lower Duwamish site located in Seattle, Washington, based on the company’s ownership of a glass container plant prior to 1995, and notifying the company of a proposed remediation action plan. An allocator has been selected to begin data review on over 30 industrial companies and government entities and at least two PRP groups have begun to discuss various allocation proposals, with this process expected to last approximately three years. During the third quarter of 2014, the PRP groups voted to include 20 new members. The USEPA issued the site Record of Decision (ROD) on December 2, 2014. Remediation costs of $342 million are expected according to the remediation plan, which does not include $100 million that has already been spent. Based on the information available to the company at this time, we do not believe that this matter will have a material adverse effect upon the liquidity, results of operations or financial condition of the company. | |
In February 2012, Ball Metal Beverage Container Corp. (BMBCC) filed an action against Crown Packaging Technology, Inc. (Crown) in the U.S. District Court for the Southern District of Ohio seeking a declaratory judgment that the sale and use of certain ends by BMBCC and its customers do not infringe certain claims of Crown’s U.S. patents. Crown subsequently filed a counterclaim alleging infringement of certain claims in these patents seeking unspecified monetary damages, fees and declaratory and injunctive relief. The parties are awaiting a claim construction order from the District Court. Based on the information available to the company at the present time, the company does not believe that this matter will have a material adverse effect upon the liquidity, results of operations or financial condition of the company. | |
Latapack-Ball’s operations are involved in various governmental assessments, principally related to claims for taxes on the internal transfer of inventory, gross revenue taxes and tax incentives. The company does not believe that the ultimate resolution of these matters will materially impact Ball Corporation’s results of operations, financial position or cash flows. Under customary local regulations, Latapack-Ball may need to post cash or other collateral if the process to challenge any administrative assessment proceeds to the Brazilian court system; however, the level of any potential cash or collateral required would not significantly impact the liquidity of Latapack-Ball or Ball Corporation. | |
Indemnifications_and_Guarantee
Indemnifications and Guarantees | 12 Months Ended |
Dec. 31, 2014 | |
Indemnifications and Guarantees | |
Indemnifications and Guarantees | |
21. Indemnifications and Guarantees | |
General Guarantees | |
The company or its appropriate consolidated direct or indirect subsidiaries have made certain indemnities, commitments and guarantees under which the specified entity may be required to make payments in relation to certain transactions. These indemnities, commitments and guarantees include indemnities to the customers of the subsidiaries in connection with the sales of their packaging and aerospace products and services; guarantees to suppliers of subsidiaries of the company guaranteeing the performance of the respective entity under a purchase agreement, construction contract or other commitment; guarantees in respect of certain foreign subsidiaries’ pension plans; indemnities for liabilities associated with the infringement of third party patents, trademarks or copyrights under various types of agreements; indemnities to various lessors in connection with facility, equipment, furniture and other personal property leases for certain claims arising from such leases; indemnities to governmental agencies in connection with the issuance of a permit or license to the company or a subsidiary; indemnities pursuant to agreements relating to certain joint ventures; indemnities in connection with the sale of businesses or substantially all of the assets and specified liabilities of businesses; and indemnities to directors, officers and employees of the company to the extent permitted under the laws of the State of Indiana and the United States of America. The duration of these indemnities, commitments and guarantees varies and, in certain cases, is indefinite. In addition many of these indemnities, commitments and guarantees do not provide for any limitation on the maximum potential future payments the company could be obligated to make. As such, the company is unable to reasonably estimate its potential exposure under these items. | |
The company has not recorded any liability for these indemnities, commitments and guarantees in the accompanying consolidated balance sheets. The company does, however, accrue for payments under promissory notes and other evidences of incurred indebtedness and for losses for any known contingent liability, including those that may arise from indemnifications, commitments and guarantees, when future payment is both reasonably estimable and probable. Finally, the company carries specific and general liability insurance policies and has obtained indemnities, commitments and guarantees from third party purchasers, sellers and other contracting parties, which the company believes would, in certain circumstances, provide recourse to any claims arising from these indemnifications, commitments and guarantees. | |
Debt Guarantees | |
The company’s senior notes and senior credit facilities are guaranteed on a full, unconditional and joint and several basis by certain of the company’s material domestic subsidiaries and the domestic subsidiary borrowers, and obligations of the subsidiary borrowers under the senior credit facilities are guaranteed by the company. Loans borrowed under the senior credit facilities by foreign subsidiary borrowers are also effectively guaranteed by certain of the company’s foreign subsidiaries by pledges of stock of the foreign subsidiary borrowers and stock of material foreign subsidiaries. These guarantees are required in support of the notes and credit facilities referred to above, are co-terminous with the terms of the respective note indentures and credit agreements and would require performance upon certain events of default referred to in the respective guarantees. The maximum potential amounts which could be required to be paid under the domestic guarantees are essentially equal to the then outstanding principal and interest under the respective notes and credit agreements, or under the applicable tranche, and the maximum potential amounts that could be required to be paid under the foreign stock pledges by foreign subsidiaries are essentially equal to the value of the stock pledged. The company is not in default under the above notes or credit facilities. The condensed consolidating financial information for the guarantor and non-guarantor subsidiaries is presented in Note 22. Separate financial statements for the guarantor subsidiaries and the non-guarantor subsidiaries are not presented because management has determined that such financial statements are not required by the current regulations. | |
Accounts Receivable Securitization | |
Ball Capital Corp. II is a separate, wholly owned corporate entity created for the purchase of accounts receivable from certain of the company’s wholly owned subsidiaries. Ball Capital Corp. II’s assets will be available first to satisfy the claims of its creditors. The company has been designated as the servicer pursuant to an agreement whereby Ball Capital Corp. II may sell and assign the accounts receivable to a commercial lender or lenders. As the servicer, the company is responsible for the servicing, administration and collection of the receivables and is primarily liable for the performance of such obligations. The company, the relevant subsidiaries and Ball Capital Corp. II are not in default under the above credit arrangement. | |
Subsidiary_Guarantees_of_Debt
Subsidiary Guarantees of Debt | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Subsidiary Guarantees of Debt | |||||||||||||||||
Subsidiary Guarantees of Debt | |||||||||||||||||
22. Subsidiary Guarantees of Debt | |||||||||||||||||
The company’s senior notes are guaranteed on a full, unconditional and joint and several basis by certain of the company’s material domestic subsidiaries. Each of the guarantor subsidiaries is 100 percent owned by Ball Corporation. These guarantees are required in support of the notes, are co-terminous with the terms of the respective note indentures and would require performance upon certain events of default referred to in the respective guarantees. The maximum potential amounts that could be required to be paid under the domestic guarantees are essentially equal to the then outstanding principal and interest under the respective notes. The following is condensed consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of December 31, 2014 and 2013, and for the three years ended December 31, 2014, 2013 and 2012. Separate financial statements for the guarantor subsidiaries and the non-guarantor subsidiaries are not presented because management has determined that such financial statements are not required by the current regulations. | |||||||||||||||||
Condensed Consolidating Statement of Earnings | |||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||
Corporation | Subsidiaries | Subsidiaries | Adjustments | Total | |||||||||||||
Net sales | $ | — | $ | 5,102.60 | $ | 3,479.30 | $ | (11.9 | ) | $ | 8,570.00 | ||||||
Cost and expenses | |||||||||||||||||
Cost of sales (excluding depreciation and amortization) | — | (4,207.3 | ) | (2,708.1 | ) | 11.9 | (6,903.5 | ) | |||||||||
Depreciation and amortization | (6.4 | ) | (127.5 | ) | (147.0 | ) | — | (280.9 | ) | ||||||||
Selling, general and administrative | (77.4 | ) | (185.5 | ) | (203.6 | ) | — | (466.5 | ) | ||||||||
Business consolidation and other activities | (11.2 | ) | (66.6 | ) | (2.7 | ) | — | (80.5 | ) | ||||||||
Equity in results of subsidiaries | 470.2 | 265.4 | — | (735.6 | ) | — | |||||||||||
Intercompany | 254.8 | (215.8 | ) | (39.0 | ) | — | — | ||||||||||
630 | (4,537.3 | ) | (3,100.4 | ) | (723.7 | ) | (7,731.4 | ) | |||||||||
Earnings (loss) before interest and taxes | 630 | 565.3 | 378.9 | (735.6 | ) | 838.6 | |||||||||||
Interest expense | (150.0 | ) | 3.4 | (13.3 | ) | — | (159.9 | ) | |||||||||
Debt refinancing and other | (33.1 | ) | — | — | — | (33.1 | ) | ||||||||||
Total interest expense | (183.1 | ) | 3.4 | (13.3 | ) | — | (193.0 | ) | |||||||||
Earnings (loss) before taxes | 446.9 | 568.7 | 365.6 | (735.6 | ) | 645.6 | |||||||||||
Tax provision | 23.1 | (99.4 | ) | (73.6 | ) | — | (149.9 | ) | |||||||||
Equity in results of affiliates, net of tax | — | 1.2 | 1.1 | — | 2.3 | ||||||||||||
Net earnings (loss) | 470 | 470.5 | 293.1 | (735.6 | ) | 498 | |||||||||||
Less net earnings attributable to noncontrolling interests | — | — | (28.0 | ) | — | (28.0 | ) | ||||||||||
Net earnings (loss) attributable to Ball Corporation | $ | 470 | $ | 470.5 | $ | 265.1 | $ | (735.6 | ) | $ | 470 | ||||||
Comprehensive earnings attributable to Ball Corporation | $ | 197.9 | $ | 209.6 | $ | 91.6 | $ | (301.2 | ) | $ | 197.9 | ||||||
Condensed Consolidating Statement of Earnings | |||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||
Corporation | Subsidiaries | Subsidiaries | Adjustments | Total | |||||||||||||
Net sales | $ | — | $ | 5,125.50 | $ | 3,364.20 | $ | (21.6 | ) | $ | 8,468.10 | ||||||
Cost and expenses | |||||||||||||||||
Cost of sales (excluding depreciation and amortization) | 0.1 | (4,246.7 | ) | (2,650.4 | ) | 21.6 | (6,875.4 | ) | |||||||||
Depreciation and amortization | (7.5 | ) | (126.7 | ) | (165.7 | ) | — | (299.9 | ) | ||||||||
Selling, general and administrative | (81.4 | ) | (179.9 | ) | (157.3 | ) | — | (418.6 | ) | ||||||||
Business consolidation and other activities | (0.7 | ) | (88.5 | ) | 10.4 | — | (78.8 | ) | |||||||||
Equity in results of subsidiaries | 426.9 | 248.4 | — | (675.3 | ) | — | |||||||||||
Intercompany | 234.1 | (188.3 | ) | (45.8 | ) | — | — | ||||||||||
571.5 | (4,581.7 | ) | (3,008.8 | ) | (653.7 | ) | (7,672.7 | ) | |||||||||
Earnings (loss) before interest and taxes | 571.5 | 543.8 | 355.4 | (675.3 | ) | 795.4 | |||||||||||
Interest expense | (172.0 | ) | 2.5 | (14.3 | ) | — | (183.8 | ) | |||||||||
Debt refinancing and other | (27.9 | ) | — | (0.1 | ) | — | (28.0 | ) | |||||||||
Total interest expense | (199.9 | ) | 2.5 | (14.4 | ) | — | (211.8 | ) | |||||||||
Earnings (loss) before taxes | 371.6 | 546.3 | 341 | (675.3 | ) | 583.6 | |||||||||||
Tax provision | 35.2 | (113.8 | ) | (71.0 | ) | — | (149.6 | ) | |||||||||
Equity in results of affiliates, net of tax | — | 0.4 | 0.2 | — | 0.6 | ||||||||||||
Net earnings (loss) from continuing operations | 406.8 | 432.9 | 270.2 | (675.3 | ) | 434.6 | |||||||||||
Discontinued operations, net of tax | — | 0.4 | — | — | 0.4 | ||||||||||||
Net earnings (loss) | 406.8 | 433.3 | 270.2 | (675.3 | ) | 435 | |||||||||||
Less net earnings attributable to noncontrolling interests | — | — | (28.2 | ) | — | (28.2 | ) | ||||||||||
Net earnings (loss) attributable to Ball Corporation | $ | 406.8 | $ | 433.3 | $ | 242 | $ | (675.3 | ) | $ | 406.8 | ||||||
Comprehensive earnings attributable to Ball Corporation (a) | $ | 519 | $ | 533.2 | $ | 261.3 | $ | (794.5 | ) | $ | 519 | ||||||
(a) | Amounts have been revised; further details are included in “Revision of Prior Period Financial Statements Related to Deferred Taxes” section of Note 1. | ||||||||||||||||
Condensed Consolidating Statement of Earnings | |||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||
Corporation | Subsidiaries | Subsidiaries | Adjustments | Total | |||||||||||||
Net sales | $ | — | $ | 5,477.30 | $ | 3,272.50 | $ | (14.1 | ) | $ | 8,735.70 | ||||||
Cost and expenses | |||||||||||||||||
Cost of sales (excluding depreciation and amortization) | 0.1 | (4,589.5 | ) | (2,598.7 | ) | 14.1 | (7,174.0 | ) | |||||||||
Depreciation and amortization | (5.8 | ) | (125.7 | ) | (151.4 | ) | — | (282.9 | ) | ||||||||
Selling, general and administrative | (69.4 | ) | (186.6 | ) | (129.5 | ) | — | (385.5 | ) | ||||||||
Business consolidation and other activities | (11.3 | ) | (55.0 | ) | (36.5 | ) | — | (102.8 | ) | ||||||||
Equity in results of subsidiaries (a) | 408.6 | 240.4 | — | (649.0 | ) | — | |||||||||||
Intercompany | 236 | (201.8 | ) | (34.2 | ) | — | — | ||||||||||
558.2 | (4,918.2 | ) | (2,950.3 | ) | (634.9 | ) | (7,945.2 | ) | |||||||||
Earnings (loss) before interest and taxes (a) | 558.2 | 559.1 | 322.2 | (649.0 | ) | 790.5 | |||||||||||
Interest expense | (166.2 | ) | 1.4 | (15.0 | ) | — | (179.8 | ) | |||||||||
Debt refinancing and other | (15.1 | ) | — | — | — | (15.1 | ) | ||||||||||
Total interest expense | (181.3 | ) | 1.4 | (15.0 | ) | — | (194.9 | ) | |||||||||
Earnings (loss) before taxes (a) | 376.9 | 560.5 | 307.2 | (649.0 | ) | 595.6 | |||||||||||
Tax provision (a) | 19.4 | (112.6 | ) | (79.0 | ) | — | (172.2 | ) | |||||||||
Equity in results of affiliates, net of tax | — | 1 | (2.3 | ) | — | (1.3 | ) | ||||||||||
Net earnings (loss) from continuing operations (a) | 396.3 | 448.9 | 225.9 | (649.0 | ) | 422.1 | |||||||||||
Discontinued operations, net of tax | — | (2.8 | ) | — | — | (2.8 | ) | ||||||||||
Net earnings (loss) (a) | 396.3 | 446.1 | 225.9 | (649.0 | ) | 419.3 | |||||||||||
Less net earnings attributable to noncontrolling interests | — | — | (23.0 | ) | — | (23.0 | ) | ||||||||||
Net earnings (loss) attributable to Ball Corporation (a) | $ | 396.3 | $ | 446.1 | $ | 202.9 | $ | (649.0 | ) | $ | 396.3 | ||||||
Comprehensive earnings attributable to Ball Corporation | $ | 386.3 | $ | 413.7 | $ | 210.8 | $ | (624.5 | ) | $ | 386.3 | ||||||
(a) | Amounts have been revised; further details are included in “Revision of Prior Period Financial Statements Related to Deferred Taxes” section of Note 1. | ||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||
Corporation | Subsidiaries | Subsidiaries | Adjustments | Total | |||||||||||||
ASSETS | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 1.5 | $ | 0.4 | $ | 189.5 | $ | — | $ | 191.4 | |||||||
Receivables, net | 43.7 | 241.3 | 672.1 | — | 957.1 | ||||||||||||
Intercompany receivables | 94 | 99.9 | 4.3 | (198.2 | ) | — | |||||||||||
Inventories, net | — | 575 | 441.7 | — | 1,016.70 | ||||||||||||
Deferred taxes and other current assets | 3.1 | 75.1 | 70.1 | — | 148.3 | ||||||||||||
Total current assets | 142.3 | 991.7 | 1,377.70 | (198.2 | ) | 2,313.50 | |||||||||||
Non-current assets | |||||||||||||||||
Property, plant and equipment, net | 15.1 | 968 | 1,447.60 | — | 2,430.70 | ||||||||||||
Investment in subsidiaries | 3,152.70 | 2,212.20 | 78.6 | (5,443.5 | ) | — | |||||||||||
Goodwill | — | 931 | 1,323.50 | — | 2,254.50 | ||||||||||||
Intangibles and other assets, net | 232.4 | 93.5 | 246.4 | — | 572.3 | ||||||||||||
Total assets | $ | 3,542.50 | $ | 5,196.40 | $ | 4,473.80 | $ | (5,641.7 | ) | $ | 7,571.00 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities | |||||||||||||||||
Short-term debt and current portion of long-term debt | $ | 1.9 | $ | 7.6 | $ | 165.6 | $ | — | $ | 175.1 | |||||||
Accounts payable | 7.1 | 732.5 | 600.4 | — | 1,340.00 | ||||||||||||
Intercompany payables | 99.7 | 1.5 | 97 | (198.2 | ) | — | |||||||||||
Accrued employee costs | 22.3 | 155.6 | 92 | — | 269.9 | ||||||||||||
Other current liabilities | 51.6 | 38 | 132.2 | — | 221.8 | ||||||||||||
Total current liabilities | 182.6 | 935.2 | 1,087.20 | (198.2 | ) | 2,006.80 | |||||||||||
Non-current liabilities | |||||||||||||||||
Long-term debt | 2,750.00 | 0.2 | 243.6 | — | 2,993.80 | ||||||||||||
Employee benefit obligations | 329.4 | 432.7 | 416.2 | — | 1,178.30 | ||||||||||||
Deferred taxes and other liabilities | (752.6 | ) | 601.8 | 303.3 | — | 152.5 | |||||||||||
Total liabilities | 2,509.40 | 1,969.90 | 2,050.30 | (198.2 | ) | 6,331.40 | |||||||||||
Common stock | 1,131.30 | 2,293.50 | 534 | (2,827.5 | ) | 1,131.30 | |||||||||||
Preferred stock | — | — | 4.8 | (4.8 | ) | — | |||||||||||
Retained earnings | 4,346.90 | 1,389.40 | 1,839.90 | (3,229.3 | ) | 4,346.90 | |||||||||||
Accumulated other comprehensive earnings (loss) | (522.1 | ) | (456.4 | ) | (161.7 | ) | 618.1 | (522.1 | ) | ||||||||
Treasury stock, at cost | (3,923.0 | ) | — | — | — | (3,923.0 | ) | ||||||||||
Total Ball Corporation shareholders’ equity | 1,033.10 | 3,226.50 | 2,217.00 | (5,443.5 | ) | 1,033.10 | |||||||||||
Noncontrolling interests | — | — | 206.5 | — | 206.5 | ||||||||||||
Total shareholders’ equity | 1,033.10 | 3,226.50 | 2,423.50 | (5,443.5 | ) | 1,239.60 | |||||||||||
Total liabilities and shareholders’ equity | $ | 3,542.50 | $ | 5,196.40 | $ | 4,473.80 | $ | (5,641.7 | ) | $ | 7,571.00 | ||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||
Corporation | Subsidiaries | Subsidiaries | Adjustments | Total | |||||||||||||
ASSETS | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 218.6 | $ | 0.3 | $ | 197.1 | $ | — | $ | 416 | |||||||
Receivables, net | 2.9 | 133.9 | 722.6 | — | 859.4 | ||||||||||||
Intercompany receivables | 178.9 | 99.1 | 1 | (279.0 | ) | — | |||||||||||
Inventories, net | — | 601.7 | 426.6 | — | 1,028.30 | ||||||||||||
Deferred taxes and other current assets (a) | 4 | 109.7 | 53.5 | — | 167.2 | ||||||||||||
Total current assets (a) | 404.4 | 944.7 | 1,400.80 | (279.0 | ) | 2,470.90 | |||||||||||
Property, plant and equipment, net | 14.9 | 877.5 | 1,479.90 | — | 2,372.30 | ||||||||||||
Investment in subsidiaries | 4,452.30 | 2,122.00 | 78.6 | (6,652.9 | ) | — | |||||||||||
Goodwill (a) | — | 935.6 | 1,464.10 | — | 2,399.70 | ||||||||||||
Intangibles and other assets, net | 206.9 | 100.9 | 269.7 | — | 577.5 | ||||||||||||
Total assets (a) | $ | 5,078.50 | $ | 4,980.70 | $ | 4,693.10 | $ | (6,931.9 | ) | $ | 7,820.40 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities | |||||||||||||||||
Short-term debt and current portion of long-term debt | $ | 310.8 | $ | 30.1 | $ | 81.7 | $ | — | $ | 422.6 | |||||||
Accounts payable | 6.9 | 525.3 | 466.6 | — | 998.8 | ||||||||||||
Intercompany payables | 95.1 | 0.4 | 183.5 | (279.0 | ) | — | |||||||||||
Accrued employee costs | 22.5 | 133.7 | 85.1 | — | 241.3 | ||||||||||||
Other current liabilities | 10 | 138.5 | 116.2 | — | 264.7 | ||||||||||||
Total current liabilities | 445.3 | 828 | 933.1 | (279.0 | ) | 1,927.40 | |||||||||||
Long-term debt | 2,750.00 | 0.5 | 432 | — | 3,182.50 | ||||||||||||
Employee benefit obligations | 284.4 | 310.9 | 437.7 | — | 1,033.00 | ||||||||||||
Deferred taxes and other liabilities (a) | 374.2 | (684.1 | ) | 571.4 | — | 261.5 | |||||||||||
Total liabilities (a) | 3,853.90 | 455.3 | 2,374.20 | (279.0 | ) | 6,404.40 | |||||||||||
Common stock | 1,078.40 | 847.1 | 531.1 | (1,378.2 | ) | 1,078.40 | |||||||||||
Preferred stock | — | — | 4.8 | (4.8 | ) | — | |||||||||||
Retained earnings (a) | 3,947.70 | 3,873.80 | 1,579.80 | (5,453.6 | ) | 3,947.70 | |||||||||||
Accumulated other comprehensive earnings (loss) (a) | (249.9 | ) | (195.5 | ) | 11.8 | 183.7 | (249.9 | ) | |||||||||
Treasury stock, at cost | (3,551.6 | ) | — | — | — | (3,551.6 | ) | ||||||||||
Total Ball Corporation shareholders’ equity (a) | 1,224.60 | 4,525.40 | 2,127.50 | (6,652.9 | ) | 1,224.60 | |||||||||||
Noncontrolling interests | — | — | 191.4 | — | 191.4 | ||||||||||||
Total shareholders’ equity (a) | 1,224.60 | 4,525.40 | 2,318.90 | (6,652.9 | ) | 1,416.00 | |||||||||||
Total liabilties and shareholders’ equity (a) | $ | 5,078.50 | $ | 4,980.70 | $ | 4,693.10 | $ | (6,931.9 | ) | $ | 7,820.40 | ||||||
(a) | Amounts have been revised; further details are included in “Revision of Prior Period Financial Statements Related to Deferred Taxes” section of Note 1. | ||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Consolidated | |||||||||||||
Corporation | Subsidiaries | Subsidiaries | Total | ||||||||||||||
Cash provided by (used in) operating activities | $ | 68.3 | $ | 367.8 | $ | 576.4 | $ | 1,012.50 | |||||||||
Cash flows from investing activities | |||||||||||||||||
Capital expenditures | (10.4 | ) | (181.8 | ) | (198.6 | ) | (390.8 | ) | |||||||||
Other, net | (7.9 | ) | (10.3 | ) | 17.6 | (0.6 | ) | ||||||||||
Cash provided by (used in) investing activities | (18.3 | ) | (192.1 | ) | (181.0 | ) | (391.4 | ) | |||||||||
Cash flows from financing activities | |||||||||||||||||
Long-term borrowings | 375 | — | 36.9 | 411.9 | |||||||||||||
Repayments of long-term borrowings | (690.4 | ) | (0.5 | ) | (206.9 | ) | (897.8 | ) | |||||||||
Net change in short-term borrowings | 1.9 | (22.2 | ) | 88.5 | 68.2 | ||||||||||||
Proceeds from issuances of common stock | 37.2 | — | — | 37.2 | |||||||||||||
Acquisitions of treasury stock | (397.3 | ) | — | — | (397.3 | ) | |||||||||||
Common dividends | (72.7 | ) | — | — | (72.7 | ) | |||||||||||
Intercompany | 470 | (152.9 | ) | (317.1 | ) | — | |||||||||||
Other, net | 17.5 | — | (12.3 | ) | 5.2 | ||||||||||||
Cash provided by (used in) financing activities | (258.8 | ) | (175.6 | ) | (410.9 | ) | (845.3 | ) | |||||||||
Effect of exchange rate changes on cash | (8.3 | ) | — | 7.9 | (0.4 | ) | |||||||||||
Change in cash and cash equivalents | (217.1 | ) | 0.1 | (7.6 | ) | (224.6 | ) | ||||||||||
Cash and cash equivalents — beginning of period | 218.6 | 0.3 | 197.1 | 416 | |||||||||||||
Cash and cash equivalents — end of period | $ | 1.5 | $ | 0.4 | $ | 189.5 | $ | 191.4 | |||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Consolidated | |||||||||||||
Corporation | Subsidiaries | Subsidiaries | Total | ||||||||||||||
Cash provided by (used in) continuing operating activities | $ | (50.5 | ) | $ | 464.7 | $ | 427.1 | $ | 841.3 | ||||||||
Cash provided by (used in) discontinued operating activities | 0.2 | (2.5 | ) | — | (2.3 | ) | |||||||||||
Total cash provided by (used in) operating activities | (50.3 | ) | 462.2 | 427.1 | 839 | ||||||||||||
Cash flows from investing activities | |||||||||||||||||
Capital expenditures | (6.7 | ) | (169.2 | ) | (202.4 | ) | (378.3 | ) | |||||||||
Business acquisition, net of cash acquired | — | (12.5 | ) | (1.7 | ) | (14.2 | ) | ||||||||||
Other, net | (19.6 | ) | (2.5 | ) | 35.5 | 13.4 | |||||||||||
Cash provided by (used in) investing activities | (26.3 | ) | (184.2 | ) | (168.6 | ) | (379.1 | ) | |||||||||
Cash flows from financing activities | |||||||||||||||||
Long-term borrowings | 1,373.00 | 1 | 269.1 | 1,643.10 | |||||||||||||
Repayments of long-term borrowings | (882.7 | ) | — | (412.2 | ) | (1,294.9 | ) | ||||||||||
Net change in short-term borrowings | (25.0 | ) | 29.6 | (62.2 | ) | (57.6 | ) | ||||||||||
Proceeds from issuances of common stock | 32.9 | — | — | 32.9 | |||||||||||||
Acquisitions of treasury stock | (431.7 | ) | — | — | (431.7 | ) | |||||||||||
Common dividends | (75.2 | ) | — | — | (75.2 | ) | |||||||||||
Intercompany | 316.5 | (308.6 | ) | (7.9 | ) | — | |||||||||||
Other, net | (6.0 | ) | — | (14.6 | ) | (20.6 | ) | ||||||||||
Cash provided by (used in) financing activities | 301.8 | (278.0 | ) | (227.8 | ) | (204.0 | ) | ||||||||||
Effect of exchange rate changes on cash | (6.8 | ) | — | (7.2 | ) | (14.0 | ) | ||||||||||
Change in cash and cash equivalents | 218.4 | — | 23.5 | 241.9 | |||||||||||||
Cash and cash equivalents — beginning of period | 0.2 | 0.3 | 173.6 | 174.1 | |||||||||||||
Cash and cash equivalents — end of period | $ | 218.6 | $ | 0.3 | $ | 197.1 | $ | 416 | |||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Consolidated | |||||||||||||
Corporation | Subsidiaries | Subsidiaries | Total | ||||||||||||||
Cash provided by (used in) continuing operating activities | $ | 44.2 | $ | 394.9 | $ | 419.2 | $ | 858.3 | |||||||||
Cash provided by (used in) discontinued operating activities | (1.8 | ) | (3.3 | ) | — | (5.1 | ) | ||||||||||
Total cash provided by (used in) operating activities | 42.4 | 391.6 | 419.2 | 853.2 | |||||||||||||
Cash flows from investing activities | |||||||||||||||||
Capital expenditures | (5.6 | ) | (115.8 | ) | (183.6 | ) | (305.0 | ) | |||||||||
Business acquisition, net of cash acquired | — | — | (71.2 | ) | (71.2 | ) | |||||||||||
Other, net | 18 | 6 | (3.8 | ) | 20.2 | ||||||||||||
Cash provided by (used in) investing activities | 12.4 | (109.8 | ) | (258.6 | ) | (356.0 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||
Long-term borrowings | 1,246.00 | — | 240.4 | 1,486.40 | |||||||||||||
Repayments of long-term borrowings | (1,016.3 | ) | (0.1 | ) | (55.2 | ) | (1,071.6 | ) | |||||||||
Net change in short-term borrowings | 5 | — | (342.0 | ) | (337.0 | ) | |||||||||||
Proceeds from issuances of common stock | 53.1 | — | — | 53.1 | |||||||||||||
Acquisitions of treasury stock | (547.2 | ) | — | — | (547.2 | ) | |||||||||||
Common dividends | (61.8 | ) | — | — | (61.8 | ) | |||||||||||
Intercompany | 241 | (282.4 | ) | 41.4 | — | ||||||||||||
Other, net | (1.2 | ) | — | (7.6 | ) | (8.8 | ) | ||||||||||
Cash provided by (used in) financing activities | (81.4 | ) | (282.5 | ) | (123.0 | ) | (486.9 | ) | |||||||||
Effect of exchange rate changes on cash | 2.8 | 0.5 | (5.3 | ) | (2.0 | ) | |||||||||||
Change in cash and cash equivalents | (23.8 | ) | (0.2 | ) | 32.3 | 8.3 | |||||||||||
Cash and cash equivalents — beginning of period | 24 | 0.5 | 141.3 | 165.8 | |||||||||||||
Cash and cash equivalents — end of period | $ | 0.2 | $ | 0.3 | $ | 173.6 | $ | 174.1 | |||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events | |
Subsequent Events | |
23. Subsequent Events | |
In February 2015, the company acquired metal end and closure facilities in Canton, Ohio. The facilities manufacture multiple-sized closures for the metal food container market, including high quality steel and aluminum easy-open ends, and will become part of Ball’s metal food and household products packaging segment. | |
On February 19, 2015, the company and Rexam PLC (Rexam) announced the terms of a recommended offer by the company to acquire all of the outstanding shares of Rexam in a cash and stock transaction. Under the terms of the offer, for each Rexam share, Rexam shareholders will receive 407 pence in cash and 0.04568 new shares of the company. The transaction values Rexam at 610 pence per share based on the company’s 90-day volume weighted average price as of February 17, 2015, and an exchange rate of US$1.54: £1 on that date representing an equity value of £4.3 billion ($6.6 billion). | |
On February 19, 2015, the company entered into a £3.3 billion unsecured bridge loan agreement, pursuant to which lending institutions have agreed, subject to limited conditions, to provide financing necessary to pay the cash portion of the consideration payable to Rexam shareholders upon consummation of the proposed acquisition of Rexam and related fees and expenses. | |
On February 19, 2015, the company entered into a new $3 billion revolving credit facility to replace the existing approximate $1.1 billion bank credit facility, redeem the 2020 and 2021 senior notes and provide ongoing liquidity for the company. | |
In addition, on February 19, 2015, the company announced the redemption of all of the outstanding 6.75 percent senior notes due in September 2020 and all of the 5.75 percent senior notes due in May 2021, each in the amount of $500 million. The redemption of these bonds will result in a pre-tax charge in interest expense of approximately $56.3 million ($36.9 million after tax), composed of the redemption premiums and the write-offs of related debt financing costs. | |
Critical_and_Significant_Accou1
Critical and Significant Accounting (Policies) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Critical and Significant Accounting Policies | ||||||||||||||||||||
Acquisitions | ||||||||||||||||||||
Acquisitions | ||||||||||||||||||||
The company records acquisitions resulting in the consolidation of an enterprise using the purchase method of accounting. Under this method, the acquiring company records the assets acquired, including intangible assets that can be identified and named, and liabilities assumed based on their estimated fair values at the date of acquisition. The purchase price in excess of the fair value of the assets acquired and liabilities assumed is recorded as goodwill. If the assets acquired, net of liabilities assumed, are greater than the purchase price paid then a bargain purchase has occurred and the company will recognize the gain immediately in earnings. Among other sources of relevant information, the company uses independent appraisals and actuarial or other valuations to assist in determining the estimated fair values of the assets and liabilities. Various assumptions are used in the determination of these estimated fair values including discount rates, market and volume growth rates, product selling prices, production costs and other prospective financial information. Transaction costs associated with acquisitions are expensed as incurred and included in the business consolidation and other activities line of the consolidated statement of earnings. | ||||||||||||||||||||
For acquisitions where the company already owns an equity investment in the acquired company, the company will recognize in earnings, upon the completion of the acquisition, a gain or loss related to the company’s existing equity investment. This gain or loss is calculated based on the fair value of the equity investment as compared to the carrying value of the existing equity investment on the date of acquisition. | ||||||||||||||||||||
Exit and Other Closure Costs (Business Consolidation Costs) | ||||||||||||||||||||
Exit and Other Closure Costs (Business Consolidation Costs) | ||||||||||||||||||||
The company estimates its liabilities for business closure activities by accumulating detailed estimates of costs and asset sale proceeds, if any, for each business consolidation initiative. This includes the estimated costs of employee severance, pension and related benefits; impairment of property and equipment and other assets, including estimates of net realizable value; accelerated depreciation; termination payments for contracts and leases; contractual obligations; and any other qualifying costs related to the exit plan. These estimated costs are grouped by specific projects within the overall exit plan and are then monitored on a monthly basis. Such disclosures represent management’s best estimates, but require assumptions about the plans that may change over time. Changes in estimates for individual locations and other matters are evaluated periodically to determine if a change in estimate is required for the overall restructuring plan. Subsequent changes to the original estimates are included in current earnings and identified as business consolidation gains or losses. | ||||||||||||||||||||
Recoverability of Goodwill and Intangible Assets | ||||||||||||||||||||
Recoverability of Goodwill and Intangible Assets | ||||||||||||||||||||
On an annual basis and at interim periods when circumstances require, the company tests the recoverability of its goodwill and indefinite-lived intangible assets. The company utilizes the two-step impairment analysis and has elected not to use the qualitative assessment or “step zero” approach. In the two-step impairment analysis, the company compares the carrying value of each identified reporting unit to its fair value. If the carrying value of the reporting unit is greater than its fair value, the second step is performed, where the implied fair value of goodwill is compared to its carrying value. The company recognizes an impairment charge for the amount by which the carrying amount of goodwill exceeds its implied fair value. The fair values of the reporting units are estimated using the net present value of discounted cash flows generated by each reporting unit and incorporate various assumptions related to discount and growth rates specific to the reporting unit to which they are applied. The company’s discounted cash flows are based upon reasonable and appropriate assumptions, which are weighted for their likely probability of occurrence, about the underlying business activities of the company’s reporting units. These reporting units have been identified based on the level at which discrete financial information is reviewed by segment management. When a business within a reporting unit is disposed of, goodwill is allocated to the gain or loss on disposition using the relative fair value methodology. During 2014, the company determined that the fair value of each of the reporting units of the company was significantly in excess of its respective carrying value. | ||||||||||||||||||||
Amortizable intangible assets are tested for impairment, when deemed necessary, based on undiscounted cash flows and, if impaired, are written down to fair value based on either discounted cash flows or appraised values. | ||||||||||||||||||||
Defined Benefit Pension Plans and Other Employee Benefits | ||||||||||||||||||||
Defined Benefit Pension Plans and Other Employee Benefits | ||||||||||||||||||||
The company has defined benefit plans that cover a significant portion of its employees. The company also has postretirement plans that provide certain medical benefits and life insurance for retirees and eligible dependents and, to a lesser extent, participates in multi-employer defined benefit plans for which Ball is not the sponsor. For the company sponsored plans, the relevant accounting guidance requires that management make certain assumptions relating to the long-term rate of return on plan assets, discount rates used to determine the present value of future obligations and expenses, salary inflation rates, health care cost trend rates, mortality rates and other assumptions. The company believes that the accounting estimates related to our pension and postretirement plans are critical accounting estimates, because they are highly susceptible to change from period to period based on the performance of plan assets, actuarial valuations, market conditions and contracted benefit changes. The selection of assumptions is based on historical trends and known economic and market conditions at the time of valuation, as well as independent studies of trends performed by the company’s actuaries. However, actual results may differ substantially from the estimates that were based on the critical assumptions. | ||||||||||||||||||||
The company recognizes the funded status of each defined benefit pension plan and other postretirement benefit plan in the consolidated balance sheet. Each overfunded plan is recognized as an asset, and each underfunded plan is recognized as a liability. Pension plan liabilities are revalued annually, or when an event occurs that requires remeasurement, based on updated assumptions and information about the individuals covered by the plan. For pension plans, accumulated actuarial gains and losses in excess of a 10 percent corridor and the prior service cost are amortized on a straight-line basis from the date recognized over the average remaining service period of active participants. For other postemployment benefits, the 10 percent corridor is not used. The majority of costs related to defined benefit and other postretirement plans are included in cost of sales; the remainder is included in selling, general and administrative expenses. | ||||||||||||||||||||
In addition to defined benefit and postretirement plans, the company maintains reserves for employee medical claims, up to our insurance stop-loss limit, and workers’ compensation claims. These are regularly evaluated and revised, as needed, based on a variety of information, including historical experience, actuarial estimates and current employee statistics. | ||||||||||||||||||||
Income Taxes | ||||||||||||||||||||
Income Taxes | ||||||||||||||||||||
Deferred income taxes reflect the future tax consequences of differences between the tax bases of assets and liabilities and their financial reporting amounts at each balance sheet date, based upon enacted income tax laws and tax rates. Income tax expense or benefit is provided based on earnings reported in the financial statements. The provision for income tax expense or benefit differs from the amounts of income taxes currently payable because certain items of income and expense included in the consolidated financial statements are recognized in different time periods by taxing authorities. | ||||||||||||||||||||
Deferred tax assets, including operating loss, capital loss and tax credit carryforwards, are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that any portion of these tax attributes will not be realized. In addition, from time to time, management must assess the need to accrue or disclose uncertain tax positions for proposed adjustments from various federal, state and foreign tax authorities who regularly audit the company in the normal course of business. In making these assessments, management must often analyze complex tax laws of multiple jurisdictions, including many foreign jurisdictions. The accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The company records the related interest expense and penalties, if any, as tax expense in the tax provision. | ||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||
The company uses derivative financial instruments for the purpose of hedging commercial risk exposures to fluctuations in interest rates, currency exchange rates, raw material costs, inflation rates and common share prices. The company’s derivative instruments are recorded in the consolidated balance sheets at fair value. The company values each derivative financial instrument either by using a single valuation technique based on observable market inputs performed internally or by obtaining valuation information from a reliable and observable market source. For a derivative designated as a cash flow hedge, the effective portion of the derivative’s mark to fair value is initially recorded as a component of accumulated other comprehensive earnings and subsequently reclassified into earnings when the hedged item affects earnings, unless it is probable that the forecasted transaction will not occur. The ineffective portion of the mark to fair value associated with all hedges is recorded in earnings immediately. Derivatives that do not qualify for hedge accounting are marked to fair value with gains and losses immediately recorded in earnings. In the consolidated statements of cash flows, derivative activities are classified based on the items being hedged. | ||||||||||||||||||||
Realized gains and losses from hedges are classified in the consolidated statements of earnings consistent with the accounting treatment of the items being hedged. Upon the early dedesignation of an effective derivative contract, the gains or losses are deferred in accumulated other comprehensive earnings until the originally hedged item affects earnings. Any gains or losses incurred after the dedesignation date are recorded in earnings immediately. | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
The company is subject to various legal proceedings and claims, including those that arise in the ordinary course of business. The company records loss contingencies when it determines that the outcome of the future event is probable of occurring and when the amount of the loss can be reasonably estimated. Gain contingencies are recognized in the financial statements when they are realized. | ||||||||||||||||||||
The determination of a reserve for a loss contingency is based on management’s judgment of probability and estimates with respect to the likelihood of an outcome and valuation of the future event. Liabilities are recorded or adjusted when events or circumstances cause these judgments or estimates to change. In assessing whether a loss is probable, Ball may consider the following factors, among others: the nature of the litigation, claim or assessment; available information, opinions or views of legal counsel and other advisors; and the experience gained from similar cases by the company and others. The company provides disclosures for material contingencies when there is a reasonable possibility that a loss or an additional loss may be incurred. Actual amounts realized upon settlement of contingencies may be different than amounts recorded and disclosed and could have a significant impact on the company’s consolidated financial statements. See Note 20 to the consolidated financial statements within Item 8 of this annual report for further details. | ||||||||||||||||||||
Principles of Consolidation and Basis of Presentation | ||||||||||||||||||||
Principles of Consolidation and Basis of Presentation | ||||||||||||||||||||
The consolidated financial statements include the accounts of Ball, its subsidiaries, and variable interest entities in which the company is considered to be the primary beneficiary. Equity investments in which the company exercises significant influence but does not control and is not the primary beneficiary are accounted for using the equity method of accounting. Investments in which the company does not exercise significant influence over the investee are accounted for using the cost method of accounting. Intercompany transactions are eliminated. | ||||||||||||||||||||
Reclassifications | ||||||||||||||||||||
Reclassifications | ||||||||||||||||||||
Certain prior year amounts have been reclassified in order to conform to the current year presentation. | ||||||||||||||||||||
Revision of Prior Period Financial Statements Related to Deferred Taxes | ||||||||||||||||||||
During the second quarter of 2014, Ball identified errors in the determination of certain deferred tax amounts, originating in 2007 and prior, primarily related to fixed assets, Canadian entity valuation allowances and pension, other postretirement benefits and restructuring balances in a Canadian entity. The correction of these items impacted the consolidated balance sheets and statements of comprehensive earnings for the years ended December 31, 2013, 2012 and 2011, as presented in the company´s 2013 annual report and the unaudited condensed financial statements for each prior quarterly interim period. Additionally, as a result of these corrections, the 2012 consolidated statement of earnings should have included a tax provision related to the settlement of certain pension plans of the Canadian entity. The company assessed the applicable guidance issued by the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB) and concluded that these misstatements were not material to Ball’s consolidated financial statements for the aforementioned prior periods; however, the company did conclude that correcting these prior misstatements would be material to the second quarter and full year 2014 consolidated statements of earnings. As a result of this analysis, the 2013 and 2012 consolidated financial statements included in this annual report have been revised to reflect the proper determination of these deferred tax positions and all related impacts. Following is a summary of the financial statement line items impacted by this revision for all periods and statements included in this annual report: | ||||||||||||||||||||
Revised Consolidated Statement of Earnings Amounts | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
($ in millions, except per share amounts) | As Previously | Adjustments | As Revised | |||||||||||||||||
Reported | ||||||||||||||||||||
Tax provision | $ | (165.0 | ) | $ | (7.2 | ) | $ | (172.2 | ) | |||||||||||
Net earnings | 426.5 | (7.2 | ) | 419.3 | ||||||||||||||||
Net earnings from continuing operations attributable to Ball | 406.3 | (7.2 | ) | 399.1 | ||||||||||||||||
Basic earnings per share - continuing operations | $ | 2.63 | $ | (0.05 | ) | $ | 2.58 | |||||||||||||
Diluted earnings per share - continuing operations | 2.57 | (0.05 | ) | 2.52 | ||||||||||||||||
Revised Consolidated Statements of Comprehensive Earnings Amounts | ||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||||||
($ in millions) | As Previously | Adjustments | As Revised | As Previously | Adjustments | As Revised | ||||||||||||||
Reported | Reported | |||||||||||||||||||
Net earnings | $ | 435 | $ | — | $ | 435 | $ | 426.5 | $ | (7.2 | ) | $ | 419.3 | |||||||
Pension and other postretirement benefits | 79.2 | 0.5 | 79.7 | (79.5 | ) | 7.2 | (72.3 | ) | ||||||||||||
Total comprehensive earnings | 546.9 | 0.5 | 547.4 | 409 | — | 409 | ||||||||||||||
Comprehensive earnings attributable to Ball Corporation | 518.5 | 0.5 | 519 | 386.3 | — | 386.3 | ||||||||||||||
Revised Consolidated Balance Sheets Amounts | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
($ in millions) | As Previously | Adjustments | As Revised | As Previously | Adjustments | As Revised | ||||||||||||||
Reported | Reported | |||||||||||||||||||
Deferred taxes and other current assets | $ | 162 | $ | 5.2 | $ | 167.2 | $ | 190.8 | $ | 5.2 | $ | 196 | ||||||||
Goodwill | 2,404.30 | (4.6 | ) | 2,399.70 | 2,359.40 | (4.6 | ) | 2,354.80 | ||||||||||||
Intangibles and other assets, net | 577.5 | — | 577.5 | 531.6 | 13 | 544.6 | ||||||||||||||
Total assets | 7,819.80 | 0.6 | 7,820.40 | 7,507.10 | 13.6 | 7,520.70 | ||||||||||||||
Deferred taxes and other liabilities | 285.6 | (24.1 | ) | 261.5 | 207.9 | (10.6 | ) | 197.3 | ||||||||||||
Total liabilities | 6,428.50 | (24.1 | ) | 6,404.40 | 6,217.10 | (10.6 | ) | 6,206.50 | ||||||||||||
Retained earnings | 3,913.80 | 33.9 | 3,947.70 | 3,580.80 | 33.9 | 3,614.70 | ||||||||||||||
Accumulated other comprehensive earnings (loss) | (240.7 | ) | (9.2 | ) | (249.9 | ) | (352.4 | ) | (9.7 | ) | (362.1 | ) | ||||||||
Total shareholders´equity | 1,391.30 | 24.7 | 1,416.00 | 1,290.00 | 24.2 | 1,314.20 | ||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||||||||||||||||||
Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less. | ||||||||||||||||||||
Inventories | ||||||||||||||||||||
Inventories | ||||||||||||||||||||
Inventories are stated at the lower of cost or market using either the first-in, first-out (FIFO) cost method of accounting or the average cost method. Inventory cost is calculated for each inventory component taking into consideration the appropriate cost factors including fixed and variable overhead, material price volatility and production levels. | ||||||||||||||||||||
Depreciation and Amortization | ||||||||||||||||||||
Depreciation and Amortization | ||||||||||||||||||||
Property, plant and equipment are carried at the cost of acquisition or construction and depreciated over the estimated useful lives of the assets. Repairs and maintenance costs, including labor and material costs for major improvements such as annual production line overhauls, are expensed as incurred, unless those costs substantially increase the useful lives or capacity of the existing assets. Assets are depreciated and amortized using the straight-line method over their estimated useful lives, generally 5 to 40 years for buildings and improvements and 2 to 20 years for machinery and equipment. Finite-lived intangible assets, including capitalized software costs, are generally amortized over their estimated useful lives of 3 to 23 years. The company periodically reviews these estimated useful lives and when appropriate changes are made prospectively. | ||||||||||||||||||||
During 2012, the company utilized a third party appraiser to assist in the evaluation of the estimated useful lives of its drawn and ironed container and related end production equipment used to make beverage containers and ends and two-piece food containers. This evaluation was performed as a result of the global alignment of the company’s use and maintenance practices for this equipment and the company’s experience with the duration over which this equipment can be utilized. As a result, the company revised the estimated useful lives of this type of equipment utilized throughout the company, which resulted in a net reduction in depreciation expense and cost of sales of $34.9 million ($22.3 million after tax, or $0.14 per diluted share) for the year ended December 31, 2012, as compared to the amount of depreciation expense and cost of sales that would have been recognized by utilizing the prior depreciable lives. The company also evaluated its estimates of the accounting for tooling, spare parts and dunnage, as well as the related obsolescence, and aligned its practices for all operations, resulting in a one-time increase in cost of sales and depreciation expense of $11.0 million ($6.7 million after tax, or $0.04 per diluted share) for the year ended December 31, 2012, primarily attributable to the immediate recognition of expense as items are placed in service. | ||||||||||||||||||||
Deferred financing costs are amortized over the life of the related loan facility and are reported as part of interest expense. When debt is extinguished prior to its maturity date, the write-off of the remaining unamortized deferred financing costs, or pro rata portion thereof, is also reported as interest expense. | ||||||||||||||||||||
Under certain business consolidation activities, accelerated depreciation may be required over the remaining useful life for designated assets to be scrapped or abandoned. The accelerated depreciation related to facility closures is disclosed as part of the business consolidation costs in the appropriate period. | ||||||||||||||||||||
Environmental Reserves | ||||||||||||||||||||
Environmental Reserves | ||||||||||||||||||||
The company estimates the liability related to environmental matters based on, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. The company records the best estimate of a loss when the loss is considered probable. As additional information becomes available, the company assesses the potential liability related to pending matters and revises the estimates. | ||||||||||||||||||||
Revenue Recognition in the Packaging Segments | ||||||||||||||||||||
Revenue Recognition in the Packaging Segments | ||||||||||||||||||||
The company recognizes sales of products in the packaging segments when the four basic criteria of revenue recognition are met: delivery has occurred; title has transferred; there is persuasive evidence of an agreement or arrangement and the price is fixed or determinable; and collection is reasonably assured. Shipping and handling costs are reported within cost of sales in the consolidated statement of earnings. | ||||||||||||||||||||
Revenue Recognition in the Aerospace and Technologies Segment | ||||||||||||||||||||
Revenue Recognition in the Aerospace and Technologies Segment | ||||||||||||||||||||
Sales under long-term contracts in the aerospace and technologies segment are primarily recognized using percentage-of-completion under the cost-to-cost method of accounting. The two primary types of long-term sales contracts utilized are cost-type contracts, which are agreements to perform for cost plus an agreed upon profit component and fixed price sales contracts, which are completed for a fixed price. Cost-type sales contracts can have different types of fee arrangements, including fixed fee, cost, milestone and performance incentive fees, award fees or a combination thereof. | ||||||||||||||||||||
At the inception of contract performance, our estimates of base, incentive and other fees are established at a conservative estimate of profit over the period of contract performance. Throughout the period of contract performance, the company regularly reevaluates and, if necessary, revises estimates of total contract revenue, total contract cost, extent of progress toward completion, probability of receipt of any award and performance fees and any clawback provisions included in the contract. Provision for estimated contract losses, if any, is made in the period that such losses are determined to be probable. Because of sales contract payment schedules, limitations on funding, and contract terms, our sales and accounts receivable generally include amounts that have been earned but not yet billed. As a prime U.S. government contractor or subcontractor, the aerospace and technologies segment is subject to a high degree of regulation, financial review and oversight by the U.S. government. | ||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
Generally accepted accounting principles define fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value using the following definitions (from highest to lowest priority): | ||||||||||||||||||||
· | Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||||||||||||
· | Level 2—Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. | |||||||||||||||||||
· | Level 3—Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable. | |||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||
Ball has a variety of restricted stock and stock option plans, and the related stock-based compensation is primarily reported as part of selling, general and administrative expenses in the consolidated statements of earnings. The compensation expense associated with restricted stock grants is calculated using the fair value at the date of grant (closing stock price) and is amortized over the restriction period. For stock options and stock-settled appreciation rights (SSARs), the company has elected to use the Black-Scholes valuation model and amortizes the estimated fair value on a straight-line basis over the requisite service period (generally the vesting period). The company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is marked to the closing price of the company’s common stock at the end of each reporting period. Tax benefits associated with option exercises are reported in financing activities in the consolidated statements of cash flows. Further details regarding the expense calculated under the fair value based method are provided in Note 16. | ||||||||||||||||||||
Research and Development | ||||||||||||||||||||
Research and Development | ||||||||||||||||||||
Research and development costs are expensed as incurred in connection with the company’s programs for the development of products and processes. Costs incurred in connection with these programs, the majority of which are included in cost of sales, amounted to $26.6 million, $31.2 million and $26.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
Currency Translation | Currency Translation | |||||||||||||||||||
Assets and liabilities of foreign operations with a functional currency other than the U.S. dollar are translated using period-end exchange rates, and revenues and expenses are translated using average exchange rates during each period. Translation gains and losses are reported in accumulated other comprehensive earnings as a component of shareholders’ equity. | ||||||||||||||||||||
Business_Segment_Information_T
Business Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Business Segment Information | ||||||||||||||||||||
Schedule of major customers | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Coca-Cola Bottlers’ Sales & Services Company LLC | 11 | % | 11 | % | 11 | % | ||||||||||||||
MillerCoors LLC and SABMiller plc | 10 | % | 9 | % | 9 | % | ||||||||||||||
U.S. Government | 10 | % | 10 | % | 9 | % | ||||||||||||||
Summary of net sales and long lived assets by geographic area | Summary of Net Sales by Geographic Area | |||||||||||||||||||
($ in millions) | U.S. (a) | Foreign | Consolidated | |||||||||||||||||
2014 | $ | 5,090.7 | $ | 3,479.3 | $ | 8,570.0 | ||||||||||||||
2013 | 5,103.9 | 3,364.2 | 8,468.1 | |||||||||||||||||
2012 | 5,463.2 | 3,272.5 | 8,735.7 | |||||||||||||||||
Summary of Net Long-Lived Assets by Geographic Area | ||||||||||||||||||||
($ in millions) | U.S. | Brazil | PRC | Germany | Other | Consolidated | ||||||||||||||
2014 | $ | 1,219.4 | $ | 458.6 | $ | 269.2 | $ | 265.1 | $ | 591.1 | $ | 2,803.4 | ||||||||
2013 | 1,099.6 | 465.7 | 281.2 | 296.3 | 576.0 | 2,718.8 | ||||||||||||||
(a) | Includes intercompany eliminations. | |||||||||||||||||||
(b) | Long-lived assets exclude goodwill and intangible assets. | |||||||||||||||||||
Summary of business by segment | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Net sales | ||||||||||||||||||||
Metal beverage packaging, Americas & Asia | $ | 4,246.80 | $ | 4,193.40 | $ | 4,541.70 | ||||||||||||||
Metal beverage packaging, Europe | 1,896.30 | 1,828.30 | 1,771.30 | |||||||||||||||||
Metal food & household products packaging | 1,504.40 | 1,558.60 | 1,559.90 | |||||||||||||||||
Aerospace & technologies | 934.8 | 897.1 | 876.8 | |||||||||||||||||
Corporate and intercompany eliminations | (12.3 | ) | (9.3 | ) | (14.0 | ) | ||||||||||||||
Net sales | $ | 8,570.00 | $ | 8,468.10 | $ | 8,735.70 | ||||||||||||||
Net earnings | ||||||||||||||||||||
Metal beverage packaging, Americas & Asia | $ | 534.8 | $ | 512.4 | $ | 522.9 | ||||||||||||||
Business consolidation and other activities | (7.5 | ) | (3.6 | ) | (52.4 | ) | ||||||||||||||
Total metal beverage packaging, Americas & Asia | 527.3 | 508.8 | 470.5 | |||||||||||||||||
Metal beverage packaging, Europe | 222.9 | 182.6 | 182.3 | |||||||||||||||||
Business consolidation and other activities | (8.7 | ) | (10.6 | ) | (9.6 | ) | ||||||||||||||
Total metal beverage packaging, Europe | 214.2 | 172 | 172.7 | |||||||||||||||||
Metal food & household products packaging | 154.2 | 177.4 | 167.8 | |||||||||||||||||
Business consolidation and other activities | (41.9 | ) | (63.7 | ) | (27.5 | ) | ||||||||||||||
Total metal food & household products packaging | 112.3 | 113.7 | 140.3 | |||||||||||||||||
Aerospace & technologies | 93.6 | 80.1 | 86.6 | |||||||||||||||||
Business consolidation and other activities | (13.9 | ) | (0.2 | ) | (1.9 | ) | ||||||||||||||
Total aerospace & technologies | 79.7 | 79.9 | 84.7 | |||||||||||||||||
Segment earnings before interest and taxes | 933.5 | 874.4 | 868.2 | |||||||||||||||||
Undistributed and corporate expenses and intercompany eliminations, net | (86.4 | ) | (78.3 | ) | (66.3 | ) | ||||||||||||||
Business consolidation and other activities | (8.5 | ) | (0.7 | ) | (11.4 | ) | ||||||||||||||
Total undistributed and corporate expenses and intercompany eliminations, net | (94.9 | ) | (79.0 | ) | (77.7 | ) | ||||||||||||||
Earnings before interest and taxes | 838.6 | 795.4 | 790.5 | |||||||||||||||||
Interest expense | (159.9 | ) | (183.8 | ) | (179.8 | ) | ||||||||||||||
Debt refinancing costs | (33.1 | ) | (28.0 | ) | (15.1 | ) | ||||||||||||||
Total interest expense | (193.0 | ) | (211.8 | ) | (194.9 | ) | ||||||||||||||
Tax provision (a) | (149.9 | ) | (149.6 | ) | (172.2 | ) | ||||||||||||||
Equity in results of affiliates, net of tax | 2.3 | 0.6 | (1.3 | ) | ||||||||||||||||
Net earnings from continuing operations (a) | 498 | 434.6 | 422.1 | |||||||||||||||||
Discontinued operations, net of tax | — | 0.4 | (2.8 | ) | ||||||||||||||||
Net earnings (a) | 498 | 435 | 419.3 | |||||||||||||||||
Less net earnings attributable to noncontrolling interests | (28.0 | ) | (28.2 | ) | (23.0 | ) | ||||||||||||||
Net earnings attibutable to Ball Corporation (a) | $ | 470 | $ | 406.8 | $ | 396.3 | ||||||||||||||
(a) | 2012 amounts have been revised; further details are included in the “Revision of Prior Period Financial Statements Related to Deferred Taxes” section of Note 1. | |||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Depreciation and Amortization | ||||||||||||||||||||
Metal beverage packaging, Americas & Asia | $ | 128.7 | $ | 121.9 | $ | 116.9 | ||||||||||||||
Metal beverage packaging, Europe | 62.5 | 87.0 | 82.4 | |||||||||||||||||
Metal food & household products packaging | 57.1 | 59.4 | 54.6 | |||||||||||||||||
Aerospace & technologies | 26.2 | 24.1 | 21.9 | |||||||||||||||||
Segment depreciation and amortization | 274.5 | 292.4 | 275.8 | |||||||||||||||||
Corporate | 6.4 | 7.5 | 7.1 | |||||||||||||||||
Depreciation and amortization | $ | 280.9 | $ | 299.9 | $ | 282.9 | ||||||||||||||
Capital Expenditures | ||||||||||||||||||||
Metal beverage packaging, Americas & Asia | $ | 160.1 | $ | 224.0 | $ | 173.9 | ||||||||||||||
Metal beverage packaging, Europe | 108.6 | 75.4 | 45.6 | |||||||||||||||||
Metal food & household products packaging | 81.6 | 43.0 | 36.3 | |||||||||||||||||
Aerospace & technologies | 30.1 | 29.4 | 43.7 | |||||||||||||||||
Segment capital expenditures | 380.4 | 371.8 | 299.5 | |||||||||||||||||
Corporate | 10.4 | 6.5 | 5.5 | |||||||||||||||||
Capital expenditures | $ | 390.8 | $ | 378.3 | $ | 305.0 | ||||||||||||||
December 31, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||
Total Assets | ||||||||||||||||||||
Metal beverage packaging, Americas & Asia | $ | 3,422.80 | $ | 3,426.40 | ||||||||||||||||
Metal beverage packaging, Europe | 2,274.50 | 2,380.10 | ||||||||||||||||||
Metal food & household products packaging (a) | 1,508.10 | 1,556.30 | ||||||||||||||||||
Aerospace & technologies | 411.6 | 346.1 | ||||||||||||||||||
Segment assets (a) | 7,617.00 | 7,708.90 | ||||||||||||||||||
Corporate assets, net of eliminations | (46.0 | ) | 111.5 | |||||||||||||||||
Total assets (a) | $ | 7,571.00 | $ | 7,820.40 | ||||||||||||||||
Investments in Affiliates | ||||||||||||||||||||
Metal beverage packaging, Americas & Asia | $ | 31.3 | $ | 31.9 | ||||||||||||||||
Metal beverage packaging, Europe | 0.5 | 0.4 | ||||||||||||||||||
Corporate assets, net of eliminations | 1.4 | 1.4 | ||||||||||||||||||
Total investments in affiliates | $ | 33.2 | $ | 33.7 | ||||||||||||||||
(a) | 2013 amounts have been revised; further details are included in the “Revision of Prior Period Financial Statements Related to Deferred Taxes” section of Note 1. | |||||||||||||||||||
Business_Consolidation_and_Oth1
Business Consolidation and Other Activities (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Business Consolidation and Other Activities | ||||||||||||||||||||
Summary of business consolidation and other activity charges included in the condensed consolidated statements of earnings | Years Ended December 31, | |||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Metal beverage packaging, Americas & Asia | $ | (7.5 | ) | $ | (3.6 | ) | $ | (52.4 | ) | |||||||||||
Metal beverage packaging, Europe | (8.7 | ) | (10.6 | ) | (9.6 | ) | ||||||||||||||
Metal food & household products packaging | (41.9 | ) | (63.7 | ) | (27.5 | ) | ||||||||||||||
Aerospace & technologies | (13.9 | ) | (0.2 | ) | (1.9 | ) | ||||||||||||||
Corporate and other | (8.5 | ) | (0.7 | ) | (11.4 | ) | ||||||||||||||
$ | (80.5 | ) | $ | (78.8 | ) | $ | (102.8 | ) | ||||||||||||
Summary by segment of the activity in the restructuring reserves | ||||||||||||||||||||
($ in millions) | Metal | Metal Food & | Metal | Aerospace & | Corporate & | Total | ||||||||||||||
Beverage | Household | Beverage | Technologies | Other Costs | ||||||||||||||||
Packaging, | Products | Packaging, | ||||||||||||||||||
Americas & | Packaging | Europe | ||||||||||||||||||
Asia | ||||||||||||||||||||
Balance at December 31 2012 | $ | 16.4 | $ | 3 | $ | — | $ | 1.9 | $ | 3.8 | $ | 25.1 | ||||||||
(Gains) charges to earnings | (3.2 | ) | 19.9 | — | — | 0.2 | 16.9 | |||||||||||||
Cash payments and other activity | (11.3 | ) | (8.2 | ) | — | (1.9 | ) | (4.0 | ) | (25.4 | ) | |||||||||
Balance at December 31 2013 | 1.9 | 14.7 | — | — | — | 16.6 | ||||||||||||||
(Gains) charges to earnings | (1.7 | ) | 12.6 | 0.9 | — | — | 11.8 | |||||||||||||
Cash payments and other activity | (0.2 | ) | (22.2 | ) | — | — | — | (22.4 | ) | |||||||||||
Balance at December 31 2014 | $ | — | $ | 5.1 | $ | 0.9 | $ | — | $ | — | $ | 6 | ||||||||
Receivables_Tables
Receivables (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables | ||||||||
Schedule of receivables | ||||||||
December 31, | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Trade accounts receivable | $ | 800 | $ | 835.2 | ||||
Less allowance for doubtful accounts | (7.0 | ) | (36.3 | ) | ||||
Net trade accounts receivable | 793 | 798.9 | ||||||
Other receivables | 164.1 | 60.5 | ||||||
$ | 957.1 | $ | 859.4 | |||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventories | ||||||||
Schedule of inventories | ||||||||
December 31, | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Raw materials and supplies | $ | 479.2 | $ | 465.6 | ||||
Work-in-process and finished goods | 579.2 | 609.6 | ||||||
Less inventory reserves | (41.7 | ) | (46.9 | ) | ||||
$ | 1,016.70 | $ | 1,028.30 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment | ||||||||
Schedule of property, plant and equipment | ||||||||
December 31, | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Land | $ | 64.6 | $ | 67.6 | ||||
Buildings | 973.4 | 980.9 | ||||||
Machinery and equipment | 3,612.50 | 3,647.80 | ||||||
Construction-in-progress | 382.7 | 232.9 | ||||||
5,033.20 | 4,929.20 | |||||||
Accumulated depreciation | (2,602.5 | ) | (2,556.9 | ) | ||||
$ | 2,430.70 | $ | 2,372.30 | |||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill | |||||||||||||||||
Schedule of goodwill | |||||||||||||||||
($ in millions) | Metal | Metal | Metal Food & | Aerospace & | Total | ||||||||||||
Beverage | Beverage | Household | Technologies | ||||||||||||||
Packaging, | Packaging, | Products | |||||||||||||||
Americas & | Europe | Packaging | |||||||||||||||
Asia | |||||||||||||||||
Balance at December 31, 2012 (a) | $ | 740.7 | $ | 993.2 | $ | 620.9 | $ | — | $ | 2,354.80 | |||||||
Business acquisitions and related opening balance sheet adjustments | — | — | (15.1 | ) | 8.6 | (6.5 | ) | ||||||||||
Effects of currency exchange rates | — | 44 | 7.4 | — | 51.4 | ||||||||||||
Balance at December 31, 2013 (a) | 740.7 | 1,037.20 | 613.2 | 8.6 | 2,399.70 | ||||||||||||
Business disposition | (1.2 | ) | — | — | — | (1.2 | ) | ||||||||||
Effects of currency exchange rates | — | (123.3 | ) | (20.7 | ) | — | (144.0 | ) | |||||||||
Balance at December 31, 2014 | $ | 739.5 | $ | 913.9 | $ | 592.5 | $ | 8.6 | $ | 2,254.50 | |||||||
(a) | 2012 and 2013 amounts have been revised; further details are included in the “Revision of Prior Period Financial Statements Related to Deferred Taxes” section of Note 1. | ||||||||||||||||
Intangibles_and_Other_Assets_T
Intangibles and Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Intangibles and Other Assets | ||||||||
Schedule of intangibles and other assets | December 31, | |||||||
($ in millions) | 2014 | 2013 | ||||||
Investments in affiliates | $ | 33.2 | $ | 33.7 | ||||
Intangible assets (net of accumulated amortization of $115.2 million and $93.7 million at December 31, 2014 and 2013, respectively) | 137.1 | 166.1 | ||||||
Capitalized software (net of accumulated amortization of $103.8 million and $91.3 million at December 31, 2014 and 2013, respectively) | 62.6 | 65.0 | ||||||
Company and trust-owned life insurance | 168.1 | 150.9 | ||||||
Deferred financing costs | 36.3 | 46.2 | ||||||
Long-term deferred tax assets | 66.5 | 36.5 | ||||||
Other | 68.5 | 79.1 | ||||||
$ | 572.3 | $ | 577.5 | |||||
Debt_and_Interest_Costs_Tables
Debt and Interest Costs (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt and Interest Costs | ||||||||
Schedule of long-term debt | ||||||||
December 31, | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Notes Payable | ||||||||
7.375% Senior Notes, due September 2019 | $ | — | $ | 315.4 | ||||
6.75% Senior Notes, due September 2020 | 500 | 500 | ||||||
5.75% Senior Notes, due May 2021 | 500 | 500 | ||||||
5.00% Senior Notes, due March 2022 | 750 | 750 | ||||||
4.00% Senior Notes, due November 2023 | 1,000.00 | 1,000.00 | ||||||
Senior Credit Facilities, due June 2018 (at variable rates) | ||||||||
Term B Loan, British sterling denominated (2013 - 2.11%) | — | 60.8 | ||||||
Term C Loan, euro denominated (2014 - 1.65%; 2013 - 1.86%) | 92.9 | 111.2 | ||||||
Multi-currency revolver, euro denominated | — | 96.6 | ||||||
Latapack-Ball Notes Payable, denominated in various currencies (2014 - 4.14%; 2013 - 3.58%) | 204.2 | 215.8 | ||||||
Other (including discounts and premiums) | 1.7 | (2.0 | ) | |||||
3,048.80 | 3,547.80 | |||||||
Less: Current portion of long-term debt | (55.0 | ) | (365.3 | ) | ||||
$ | 2,993.80 | $ | 3,182.50 | |||||
Taxes_on_Income_Tables
Taxes on Income (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Taxes on Income | |||||||||||
Schedule of amount of earnings before income taxes | |||||||||||
Years Ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||
U.S. | $ | 279.7 | $ | 242.9 | $ | 295.8 | |||||
Foreign | 365.9 | 340.7 | 299.8 | ||||||||
$ | 645.6 | $ | 583.6 | $ | 595.6 | ||||||
Schedule of provision for income tax expense | |||||||||||
Years Ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||
Current | |||||||||||
U.S. | $ | 50.8 | $ | 47.2 | $ | 54.7 | |||||
State and local | 17.7 | 3.6 | 15 | ||||||||
Foreign | 69.5 | 100.4 | 81.3 | ||||||||
Total current | 138 | 151.2 | 151 | ||||||||
Deferred | |||||||||||
U.S. | 8.9 | 28.5 | 25.7 | ||||||||
State and local | (1.1 | ) | (0.7 | ) | 5 | ||||||
Foreign | 4.1 | (29.4 | ) | (9.5 | ) | ||||||
Total deferred (a) | 11.9 | (1.6 | ) | 21.2 | |||||||
Tax provision | $ | 149.9 | $ | 149.6 | $ | 172.2 | |||||
(a) | Amounts do not include tax benefits (expense) related to discontinued operations of $(0.2) million and $1.7 million in 2013 and 2012, respectively. | ||||||||||
Schedule of income tax provision recorded within the consolidated statements of earnings which differ from the provisions determined by applying the U.S. statutory tax rate to pretax earnings | |||||||||||
Years Ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||
Statutory U.S. federal income tax | $ | 226 | $ | 204.3 | $ | 208.5 | |||||
Increase (decrease) due to: | |||||||||||
Foreign tax rate differences | (57.3 | ) | (45.5 | ) | (36.9 | ) | |||||
U.S. state and local taxes, net | 6.9 | 1.6 | 12.2 | ||||||||
U.S. taxes on foreign earnings, net of tax credits | 11.8 | 26.4 | 14.5 | ||||||||
U.S. manufacturing deduction | (6.8 | ) | (4.3 | ) | (7.1 | ) | |||||
U.S. research and development tax credits | (8.5 | ) | (17.9 | ) | (5.3 | ) | |||||
Uncertain tax positions, including interest | (7.9 | ) | (3.4 | ) | (10.3 | ) | |||||
Company and trust-owned life insurance | (4.9 | ) | (6.3 | ) | (5.5 | ) | |||||
Other, net | (9.4 | ) | (5.3 | ) | 2.1 | ||||||
Provision for taxes | $ | 149.9 | $ | 149.6 | $ | 172.2 | |||||
Effective tax rate expressed as a percentage of pretax earnings | 23.2 | % | 25.6 | % | 28.9 | % | |||||
Schedule of significant components of deferred tax assets and liabilities | |||||||||||
December 31, | |||||||||||
($ in millions) | 2014 | 2013 | |||||||||
Deferred tax assets: | |||||||||||
Deferred compensation | $ | 105.7 | $ | 104.1 | |||||||
Accrued employee benefits | 128.1 | 130.6 | |||||||||
Plant closure costs | 3.4 | 15.2 | |||||||||
Accrued pensions | 175.5 | 88.9 | |||||||||
Inventory and other reserves | 19.4 | 24.3 | |||||||||
Net operating losses, foreign tax credits and other tax attributes | 108.8 | 96 | |||||||||
Unrealized losses on currency exchange and derivative transactions | 24.4 | 29.5 | |||||||||
Other | 26.2 | 30 | |||||||||
Total deferred tax assets | 591.5 | 518.6 | |||||||||
Valuation allowance | (92.4 | ) | (85.0 | ) | |||||||
Net deferred tax assets | 499.1 | 433.6 | |||||||||
Deferred tax liabilities: | |||||||||||
Property, plant and equipment | (242.4 | ) | (244.2 | ) | |||||||
Goodwill and other intangible assets | (141.1 | ) | (144.0 | ) | |||||||
Other | (30.2 | ) | (15.1 | ) | |||||||
Total deferred tax liabilities | (413.7 | ) | (403.3 | ) | |||||||
Net deferred tax asset (liability) | $ | 85.4 | $ | 30.3 | |||||||
Schedule of net deferred tax asset (liability) included in consolidated balance sheets | |||||||||||
December 31, | |||||||||||
($ in millions) | 2014 | 2013 | |||||||||
Deferred taxes and other current assets | $ | 54.9 | $ | 83.2 | |||||||
Intangibles and other assets, net | 66.5 | 36.5 | |||||||||
Other current liabilities | (3.6 | ) | (3.0 | ) | |||||||
Deferred taxes and other liabilities | (32.4 | ) | (86.4 | ) | |||||||
Net deferred tax asset | $ | 85.4 | $ | 30.3 | |||||||
Roll forward of unrecognized tax benefits related to uncertain income tax positions | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||
Balance at January 1 | $ | 78.3 | $ | 76.6 | $ | 57.4 | |||||
Additions based on tax positions related to the current year | 1.4 | 1.7 | 31.3 | ||||||||
Additions for tax positions of prior years | 7.7 | 5.5 | 6.2 | ||||||||
Reductions for settlements | — | (7.2 | ) | (19.8 | ) | ||||||
Reductions due to lapse of statute of limitations | (16.5 | ) | (0.2 | ) | — | ||||||
Effect of foreign currency exchange rates | (5.4 | ) | 1.9 | 1.5 | |||||||
Balance at December 31 | $ | 65.5 | $ | 78.3 | $ | 76.6 | |||||
Employee_Benefit_Obligations_T
Employee Benefit Obligations (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Employee Benefit Obligations | |||||||||||||||||||||||||||||
Schedule of employee benefit obligations | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||||||||||||||||||
Underfunded defined benefit pension liabilities | $ | 724.1 | $ | 601.9 | |||||||||||||||||||||||||
Less current portion and prepaid pension assets | (19.4 | ) | (21.4 | ) | |||||||||||||||||||||||||
Long-term defined benefit pension liabilities | 704.7 | 580.5 | |||||||||||||||||||||||||||
Retiree medical and other postemployment benefits | 169 | 165.9 | |||||||||||||||||||||||||||
Deferred compensation plans | 272.2 | 257.1 | |||||||||||||||||||||||||||
Other | 32.4 | 29.5 | |||||||||||||||||||||||||||
$ | 1,178.30 | $ | 1,033.00 | ||||||||||||||||||||||||||
Defined Benefit Pension Plans | |||||||||||||||||||||||||||||
Employee Benefit Obligations | |||||||||||||||||||||||||||||
Analysis of change in benefit accruals | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
($ in millions) | U.S. | Foreign | Total | U.S. | Foreign | Total | |||||||||||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||||||||||||||
Benefit obligation at prior year end | $ | 1,284.20 | $ | 704.6 | $ | 1,988.80 | $ | 1,373.60 | $ | 660 | $ | 2,033.60 | |||||||||||||||||
Service cost | 46.3 | 13.4 | 59.7 | 48.7 | 12.1 | 60.8 | |||||||||||||||||||||||
Interest cost | 62 | 25.7 | 87.7 | 55.2 | 24 | 79.2 | |||||||||||||||||||||||
Benefits paid | (51.4 | ) | (32.7 | ) | (84.1 | ) | (75.4 | ) | (32.2 | ) | (107.6 | ) | |||||||||||||||||
Net actuarial (gains) losses | 184 | 105.4 | 289.4 | (122.2 | ) | 18.3 | (103.9 | ) | |||||||||||||||||||||
Effect of exchange rates | — | (73.2 | ) | (73.2 | ) | — | 19.2 | 19.2 | |||||||||||||||||||||
Settlements/curtailments/special termination | (102.8 | ) | — | (102.8 | ) | 3.5 | 1.7 | 5.2 | |||||||||||||||||||||
Plan amendments and other | (6.2 | ) | — | (6.2 | ) | 0.8 | 1.5 | 2.3 | |||||||||||||||||||||
Benefit obligation at year end | 1,416.10 | 743.2 | 2,159.30 | 1,284.20 | 704.6 | 1,988.80 | |||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||
Fair value of assets at prior year end | 1,109.50 | 277.4 | 1,386.90 | 952 | 261.4 | 1,213.40 | |||||||||||||||||||||||
Actual return on plan assets | 48.4 | 65.2 | 113.6 | 76.2 | 6.6 | 82.8 | |||||||||||||||||||||||
Employer contributions | 94.3 | 26.9 | 121.2 | 157.5 | 16.3 | 173.8 | |||||||||||||||||||||||
Contributions to unfunded | |||||||||||||||||||||||||||||
German plans (a) | — | 22.2 | 22.2 | — | 22.5 | 22.5 | |||||||||||||||||||||||
Benefits paid | (51.4 | ) | (32.7 | ) | (84.1 | ) | (75.4 | ) | (32.2 | ) | (107.6 | ) | |||||||||||||||||
Effect of exchange rates | — | (21.8 | ) | (21.8 | ) | — | 1.8 | 1.8 | |||||||||||||||||||||
Settlements | (102.8 | ) | — | (102.8 | ) | (0.8 | ) | — | (0.8 | ) | |||||||||||||||||||
Other | — | — | — | — | 1 | 1 | |||||||||||||||||||||||
Fair value of assets at end of year | 1,098.00 | 337.2 | 1,435.20 | 1,109.50 | 277.4 | 1,386.90 | |||||||||||||||||||||||
Underfunded status | $ | (318.1 | ) | $ | (406.0 | )(a) | $ | (724.1 | ) | $ | (174.7 | ) | $ | (427.2 | )(a) | $ | (601.9 | ) | |||||||||||
(a) | The German plans are unfunded and the liability is included in the company’s consolidated balance sheets. Benefits are paid directly by the company to the participants. The German plans represented $393.9 million and $370.3 million of the total unfunded status at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||
Schedule of amounts recognized in the consolidated balance sheets | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
($ in millions) | U.S. | Foreign | Total | U.S. | Foreign | Total | |||||||||||||||||||||||
Prepaid pension cost | $ | — | $ | 1.8 | $ | 1.8 | $ | — | $ | 2.3 | $ | 2.3 | |||||||||||||||||
Defined benefit pension liabilities | (318.1 | ) | (407.8 | ) | (725.9 | ) | (174.7 | ) | (429.5 | ) | (604.2 | ) | |||||||||||||||||
$ | (318.1 | ) | $ | (406.0 | ) | $ | (724.1 | ) | $ | (174.7 | ) | $ | (427.2 | ) | $ | (601.9 | ) | ||||||||||||
Schedule of amounts recognized in accumulated other comprehensive earnings (loss) | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
($ in millions) | U.S. | Foreign | Total | U.S. | Foreign | Total | |||||||||||||||||||||||
Net actuarial loss | $ | 606.3 | $ | 183 | $ | 789.3 | $ | 462.9 | $ | 153 | $ | 615.9 | |||||||||||||||||
Net prior service cost (credit) | 7.9 | (1.9 | ) | 6 | 13.9 | (2.4 | ) | 11.5 | |||||||||||||||||||||
Tax effect and currency exchange rates | (239.0 | ) | (50.1 | ) | (289.1 | ) | (187.0 | ) | (47.3 | ) | (234.3 | ) | |||||||||||||||||
$ | 375.2 | $ | 131 | $ | 506.2 | $ | 289.8 | $ | 103.3 | $ | 393.1 | ||||||||||||||||||
Summary of information for plans with an accumulated benefit obligation in excess of plan assets | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
($ in millions) | U.S. | Foreign | Total | U.S. | Foreign | Total | |||||||||||||||||||||||
Projected benefit obligation | $ | 1,416.0 | $ | 440.2 | $ | 1,856.2 | $ | 1,284.1 | $ | 415.2 | $ | 1,699.3 | |||||||||||||||||
Accumulated benefit obligation | 1,355.2 | 411.1 | 1,766.3 | 1,236.7 | 393.4 | 1,630.1 | |||||||||||||||||||||||
Fair value of plan assets | 1,098.0 | 40.5 | (a) | 1,138.5 | 1,109.5 | 40.1 | (a) | 1,149.6 | |||||||||||||||||||||
(a) | The German plans are unfunded and, therefore, there is no fair value of plan assets associated with them. The unfunded status of those plans was $393.9 million and $370.3 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
($ in millions) | U.S. | Foreign | Total | U.S. | Foreign | Total | U.S. | Foreign | Total | ||||||||||||||||||||
Ball-sponsored plans: | |||||||||||||||||||||||||||||
Service cost | $ | 46.3 | $ | 13.4 | $ | 59.7 | $ | 48.7 | $ | 12.1 | $ | 60.8 | $ | 47 | $ | 7.9 | $ | 54.9 | |||||||||||
Interest cost | 62 | 25.7 | 87.7 | 55.2 | 24 | 79.2 | 56.5 | 28.7 | 85.2 | ||||||||||||||||||||
Expected return on plan assets | (82.6 | ) | (17.0 | ) | (99.6 | ) | (77.3 | ) | (16.7 | ) | (94.0 | ) | (73.9 | ) | (16.9 | ) | (90.8 | ) | |||||||||||
Amortization of prior service cost | (0.1 | ) | (0.5 | ) | (0.6 | ) | — | (0.4 | ) | (0.4 | ) | 0.9 | (0.4 | ) | 0.5 | ||||||||||||||
Recognized net actuarial loss | 29.5 | 8.2 | 37.7 | 42.5 | 7.8 | 50.3 | 33.7 | 7 | 40.7 | ||||||||||||||||||||
Curtailment and settlement losses (gains), including special termination benefits | 45.3 | — | 45.3 | 6.1 | 1.7 | 7.8 | (0.1 | ) | 25.7 | 25.6 | |||||||||||||||||||
Net periodic benefit cost for Ball-sponsored plans | 100.4 | 29.8 | 130.2 | 75.2 | 28.5 | 103.7 | 64.1 | 52 | 116.1 | ||||||||||||||||||||
Multi-employer plans: | |||||||||||||||||||||||||||||
Net periodic benefit cost, excluding curtailment loss | 2 | — | 2 | 2.6 | — | 2.6 | 2.7 | — | 2.7 | ||||||||||||||||||||
Curtailment and settlement losses (gains) | — | — | — | 9.8 | — | 9.8 | — | — | — | ||||||||||||||||||||
Net periodic benefit cost for multi-employer plans | 2 | — | 2 | 12.4 | — | 12.4 | 2.7 | — | 2.7 | ||||||||||||||||||||
Total net periodic benefit cost | $ | 102.4 | $ | 29.8 | $ | 132.2 | $ | 87.6 | $ | 28.5 | $ | 116.1 | $ | 66.8 | $ | 52 | $ | 118.8 | |||||||||||
Schedule of target asset allocations established | |||||||||||||||||||||||||||||
U.S. | Canada | United Kingdom (c) | |||||||||||||||||||||||||||
Cash and cash equivalents | 0-10% | 0-2% | — | ||||||||||||||||||||||||||
Equity securities | 10-75% | (a) | 8-12% | 25 | % | ||||||||||||||||||||||||
Fixed income securities | 25-70% | (b) | 88-92% | 61 | % | ||||||||||||||||||||||||
Absolute return investments | — | — | 6 | % | |||||||||||||||||||||||||
Alternative investments | 0-35% | — | 8 | % | |||||||||||||||||||||||||
(a) | Equity securities may consist of: (1) up to 25 percent large cap equities, (2) up to 10 percent mid cap equities, (3) up to 10 percent small cap equities, (4) up to 35 percent foreign equities and (5) up to 35 percent special equities. Holdings in Ball Corporation common stock or Ball bonds cannot exceed 5 percent of the trust’s assets. | ||||||||||||||||||||||||||||
(b) | Debt securities may include up to 10 percent non-investment grade bonds, up to 10 percent bank loans and up to 15 percent international bonds. | ||||||||||||||||||||||||||||
(c) | The percentages provided reflect the asset allocation percentage at December 31, 2014. The portfolio mix is expected to be adjusted over time toward more fixed income securities. | ||||||||||||||||||||||||||||
Schedule of actual weighted average asset allocations | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Cash and cash equivalents | 3 | % | 6 | % | |||||||||||||||||||||||||
Equity securities | 38 | % | 37 | % | |||||||||||||||||||||||||
Fixed income securities | 50 | % | 49 | % | |||||||||||||||||||||||||
Alternative investments | 9 | % | 8 | % | |||||||||||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||||||||||
North American | |||||||||||||||||||||||||||||
Employee Benefit Obligations | |||||||||||||||||||||||||||||
Summary of weighted average assumptions used to determine benefit obligations | |||||||||||||||||||||||||||||
U.S. | Canada | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Discount rate | 4.15 | % | 5.00 | % | 4.13 | % | 3.50 | % | 4.25 | % | 4.00 | % | |||||||||||||||||
Rate of compensation increase | 4.80 | % | 4.80 | % | 4.80 | % | 3.00 | % | 3.00 | % | 3.00 | % | |||||||||||||||||
Summary of weighted average assumptions used to determine net periodic benefit cost | |||||||||||||||||||||||||||||
U.S. | Canada | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Discount rate | 5.00 | % | 4.13 | % | 4.75 | % | 4.25 | % | 4.00 | % | 4.05 | % | |||||||||||||||||
Rate of compensation increase | 4.80 | % | 4.80 | % | 4.80 | % | 3.00 | % | 3.00 | % | 3.00 | % | |||||||||||||||||
Expected long-term rate of return on assets | 7.25 | % | 7.63 | % | 7.75 | % | 4.56 | % | 4.55 | % | 4.53 | % | |||||||||||||||||
European | |||||||||||||||||||||||||||||
Employee Benefit Obligations | |||||||||||||||||||||||||||||
Summary of weighted average assumptions used to determine benefit obligations | |||||||||||||||||||||||||||||
United Kingdom | Germany | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Discount rate | 3.75 | % | 4.50 | % | 4.50 | % | 1.75 | % | 3.25 | % | 3.25 | % | |||||||||||||||||
Rate of compensation increase | 3.00 | % | 4.25 | % | 3.75 | % | 2.50 | % | 2.75 | % | 2.75 | % | |||||||||||||||||
Pension increase | 3.15 | % | 3.40 | % | 2.90 | % | 1.75 | % | 1.75 | % | 1.75 | % | |||||||||||||||||
Summary of weighted average assumptions used to determine net periodic benefit cost | |||||||||||||||||||||||||||||
United Kingdom | Germany | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Discount rate | 4.50 | % | 4.50 | % | 5.00 | % | 3.25 | % | 3.25 | % | 5.00 | % | |||||||||||||||||
Rate of compensation increase | 4.25 | % | 3.75 | % | 3.90 | % | 2.75 | % | 2.75 | % | 2.75 | % | |||||||||||||||||
Pension increase | 3.40 | % | 2.90 | % | 3.05 | % | 1.75 | % | 1.75 | % | 1.75 | % | |||||||||||||||||
Expected long-term rate of return on assets | 6.50 | % | 7.00 | % | 7.00 | % | N/A | N/A | N/A | ||||||||||||||||||||
U.S. | |||||||||||||||||||||||||||||
Employee Benefit Obligations | |||||||||||||||||||||||||||||
Summary of levels assigned to the plan assets | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
U.S. pension assets, at fair value: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 0.9 | $ | 88.7 | $ | — | $ | 89.6 | |||||||||||||||||||||
Corporate equity securities: | |||||||||||||||||||||||||||||
Consumer discretionary | 53.8 | — | — | 53.8 | |||||||||||||||||||||||||
Industrials | 58.7 | — | — | 58.7 | |||||||||||||||||||||||||
Information technology | 57.5 | — | — | 57.5 | |||||||||||||||||||||||||
Other | 116.6 | 34.4 | — | 151.0 | |||||||||||||||||||||||||
U.S. government and agency securities: | |||||||||||||||||||||||||||||
FHLMC mortgage backed securities | — | 14.7 | — | 14.7 | |||||||||||||||||||||||||
FNMA mortgage backed securities | — | 49.9 | — | 49.9 | |||||||||||||||||||||||||
Other | 49.1 | 13.1 | — | 62.2 | |||||||||||||||||||||||||
Corporate bonds and notes: | |||||||||||||||||||||||||||||
Financials | — | 96.5 | — | 96.5 | |||||||||||||||||||||||||
Oil and gas | — | 33.4 | — | 33.4 | |||||||||||||||||||||||||
Private placement | — | 44.8 | — | 44.8 | |||||||||||||||||||||||||
Other | — | 113.5 | — | 113.5 | |||||||||||||||||||||||||
Commingled funds | |||||||||||||||||||||||||||||
International | 19.5 | 68.7 | — | 88.2 | |||||||||||||||||||||||||
Other | 3.3 | 50.3 | — | 53.6 | |||||||||||||||||||||||||
Limited partnerships and other | — | 67.6 | 63.0 | 130.6 | |||||||||||||||||||||||||
Total assets | $ | 359.4 | $ | 675.6 | $ | 63.0 | $ | 1,098.0 | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
U.S. pension assets, at fair value: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 0.5 | $ | 149.8 | $ | — | $ | 150.3 | |||||||||||||||||||||
Corporate equity securities: | |||||||||||||||||||||||||||||
Industrials | 54.7 | — | — | 54.7 | |||||||||||||||||||||||||
Information technology | 55.3 | — | — | 55.3 | |||||||||||||||||||||||||
Other | 156.7 | 30.8 | — | 187.5 | |||||||||||||||||||||||||
U.S. government and agency securities: | |||||||||||||||||||||||||||||
FHLMC mortgage backed securities | — | 17.5 | — | 17.5 | |||||||||||||||||||||||||
FNMA mortgage backed securities | — | 43.1 | — | 43.1 | |||||||||||||||||||||||||
Other | 35.7 | 15.6 | — | 51.3 | |||||||||||||||||||||||||
Corporate bonds and notes: | |||||||||||||||||||||||||||||
Financials | — | 105.2 | — | 105.2 | |||||||||||||||||||||||||
Utilities | — | 37.4 | — | 37.4 | |||||||||||||||||||||||||
Private placement | — | 45.4 | — | 45.4 | |||||||||||||||||||||||||
Other | 0.2 | 108.2 | — | 108.4 | |||||||||||||||||||||||||
Commingled funds | 23.2 | 111.5 | — | 134.7 | |||||||||||||||||||||||||
Limited partnerships and other | — | 66.8 | 51.9 | 118.7 | |||||||||||||||||||||||||
Total assets | $ | 326.3 | $ | 731.3 | $ | 51.9 | $ | 1,109.5 | |||||||||||||||||||||
Changes in level 3 plan assets | The following is a reconciliation of the U.S. Level 3 assets for the two years ended December 31, 2014 (dollars in millions): | ||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 48.9 | |||||||||||||||||||||||||||
Actual return on plan assets relating to assets still held at the reporting date | 2 | ||||||||||||||||||||||||||||
Purchases | 5.9 | ||||||||||||||||||||||||||||
Sales | (4.9 | ) | |||||||||||||||||||||||||||
Balance at December 31, 2013 | 51.9 | ||||||||||||||||||||||||||||
Actual return on plan assets relating to assets still held at the reporting date | 9.5 | ||||||||||||||||||||||||||||
Purchases | 9.1 | ||||||||||||||||||||||||||||
Sales | (7.5 | ) | |||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 63 | |||||||||||||||||||||||||||
Canada. | |||||||||||||||||||||||||||||
Employee Benefit Obligations | |||||||||||||||||||||||||||||
Summary of levels assigned to the plan assets | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||||||||||||||||||
Canadian pension assets, at fair value (all Level 2): | |||||||||||||||||||||||||||||
Equity commingled funds | $ | 3.9 | $ | 4.2 | |||||||||||||||||||||||||
Fixed income commingled funds | 34.5 | 35.6 | |||||||||||||||||||||||||||
Fixed income securities | 8.7 | 9.5 | |||||||||||||||||||||||||||
Total assets | $ | 47.1 | $ | 49.3 | |||||||||||||||||||||||||
United Kingdom. | |||||||||||||||||||||||||||||
Employee Benefit Obligations | |||||||||||||||||||||||||||||
Summary of levels assigned to the plan assets | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||||||||||||||||||
U.K. pension assets, at fair value (all Level 2): | |||||||||||||||||||||||||||||
Equity commingled funds | $ | 71.3 | $ | 56.2 | |||||||||||||||||||||||||
Fixed income commingled funds | 174.1 | 134.9 | |||||||||||||||||||||||||||
Absolute return funds | 17.2 | 18.0 | |||||||||||||||||||||||||||
Alternative investments | 22.8 | 15.8 | |||||||||||||||||||||||||||
Net assets | $ | 285.4 | $ | 224.9 | |||||||||||||||||||||||||
Other post retirement benefits | |||||||||||||||||||||||||||||
Employee Benefit Obligations | |||||||||||||||||||||||||||||
Analysis of change in benefit accruals | |||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||
Benefit obligation at prior year end | $ | 155.4 | $ | 168.2 | |||||||||||||||||||||||||
Service cost | 1.4 | 1.7 | |||||||||||||||||||||||||||
Interest cost | 7.3 | 6.6 | |||||||||||||||||||||||||||
Benefits paid | (11.4 | ) | (12.5 | ) | |||||||||||||||||||||||||
Net actuarial (gain) loss | 3.1 | (9.1 | ) | ||||||||||||||||||||||||||
Special termination benefits | — | 1.9 | |||||||||||||||||||||||||||
Effect of exchange rates and other | (1.7 | ) | (1.4 | ) | |||||||||||||||||||||||||
Benefit obligation at year end | $ | 154.1 | $ | 155.4 | |||||||||||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Service cost | $ | 1.4 | $ | 1.7 | $ | 1.6 | |||||||||||||||||||||||
Interest cost | 7.3 | 6.6 | 7.4 | ||||||||||||||||||||||||||
Amortization of prior service cost | (0.5 | ) | (0.5 | ) | (0.1 | ) | |||||||||||||||||||||||
Recognized net actuarial loss (gain) | (1.5 | ) | (0.6 | ) | (1.0 | ) | |||||||||||||||||||||||
Special termination benefits | — | 1.9 | — | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | 6.7 | $ | 9.1 | $ | 7.9 | |||||||||||||||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Shareholders' Equity | ||||||||||||||
Schedule of activity related to accumulated other comprehensive earnings (loss) | ||||||||||||||
($ in millions) | Foreign | Pension and | Effective | Accumulated | ||||||||||
Currency | Other | Derivatives | Other | |||||||||||
Translation | Postretirement | (Net of Tax) | Comprehensive | |||||||||||
Benefits | Earnings (Loss) | |||||||||||||
(Net of Tax) | ||||||||||||||
December 31, 2012 (a) | $ | 118.3 | $ | (471.5 | ) | $ | (8.9 | ) | $ | (362.1 | ) | |||
Other comprehensive earnings (loss) before reclassifications | 62.4 | 49.1 | (51.3 | ) | 60.2 | |||||||||
Amounts reclassified from accumulated other comprehensive earnings (loss) | — | 30.6 | 21.4 | 52 | ||||||||||
December 31, 2013 (a) | 180.7 | (391.8 | ) | (38.8 | ) | (249.9 | ) | |||||||
Other comprehensive earnings (loss) before reclassifications | (199.1 | ) | (159.4 | ) | 4.3 | (354.2 | ) | |||||||
Amounts reclassified from accumulated other comprehensive earnings (loss) | — | 51.3 | 30.7 | 82 | ||||||||||
December 31, 2014 | $ | (18.4 | ) | $ | (499.9 | ) | $ | (3.8 | ) | $ | (522.1 | ) | ||
(a) | 2013 and 2012 amounts have been revised; further details are included in the “Revision of Prior Period Financial Statements Related to Deferred Taxes” section of Note 1. | |||||||||||||
Information related to amounts recognized into net earnings from AOCI | ||||||||||||||
December 31, | ||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||
Gains (losses) on cash flow hedges: | ||||||||||||||
Commodity contracts recorded in net sales | $ | (6.2 | ) | $ | 8.4 | |||||||||
Commodity contracts and currency exchange contracts recorded in cost of sales | (27.2 | ) | (35.9 | ) | ||||||||||
Interest rate contracts recorded in interest expense | — | (1.0 | ) | |||||||||||
Total before tax effect | (33.4 | ) | (28.5 | ) | ||||||||||
Tax benefit (expense) on amounts reclassified into earnings | 2.7 | 7.1 | ||||||||||||
Recognized gain (loss) | $ | (30.7 | ) | $ | (21.4 | ) | ||||||||
Amortization of pension and other postretirement benefits (a): | ||||||||||||||
Prior service income (cost) | $ | 0.6 | $ | 1 | ||||||||||
Actuarial gains (losses) | (36.8 | ) | (49.8 | ) | ||||||||||
Effect of pension settlement | (45.3 | ) | — | |||||||||||
Total before tax effect | (81.5 | ) | (48.8 | ) | ||||||||||
Tax benefit (expense) on amounts reclassified into earnings | 30.2 | 18.2 | ||||||||||||
Recognized gain (loss) | $ | (51.3 | ) | $ | (30.6 | ) | ||||||||
(a) | These components are included in the computation of net periodic benefit cost included in Note 14. | |||||||||||||
StockBased_Compensation_Progra1
Stock-Based Compensation Programs (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Stock-Based Compensation Programs | ||||||||
Summary of stock option activity | A summary of stock option activity for the year ended December 31, 2014, follows: | |||||||
Outstanding Options and SSARs | ||||||||
Number of | Weighted | |||||||
Shares | Average | |||||||
Exercise Price | ||||||||
Beginning of year | 10,058,729 | $ | 29.68 | |||||
Granted | 1,361,390 | 49.07 | ||||||
Exercised | (1,481,368 | ) | 25.37 | |||||
Canceled/forfeited | (200,721 | ) | 43.18 | |||||
End of period | 9,738,030 | 32.76 | ||||||
Vested and exercisable, end of period | 6,728,435 | 27.46 | ||||||
Reserved for future grants | 10,428,157 | |||||||
Schedule of weighted average assumptions used for estimating fair values of options | ||||||||
2014 Grants | 2013 Grants | 2012 Grants | ||||||
Expected dividend yield | 1.06% | 1.13% | 1.06% | |||||
Expected stock price volatility | 21.41% | 22.02% | 30.22% | |||||
Risk-free interest rate | 1.65% | 1.02% | 0.84% | |||||
Expected life of options (in years) | 5.50 years | 5.50 years | 5.26 years | |||||
Summary of restricted stock activity | ||||||||
Number of | Weighted | |||||||
Shares/Units | Average Grant | |||||||
Price | ||||||||
Beginning of year | 1,441,014 | $ | 31.94 | |||||
Granted | 212,695 | 51.65 | ||||||
Vested | (385,291 | ) | 35.92 | |||||
Canceled/forfeited | (47,757 | ) | 40.55 | |||||
End of period | 1,220,661 | 33.92 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share | |||||||||||
Schedule of earnings per share | Years Ended December 31, | ||||||||||
($ in millions, except per share amounts; shares in thousands) | 2014 | 2013 | 2012 | ||||||||
Net earnings attributable to Ball Corporation | $ | 470.0 | $ | 406.8 | $ | 396.3 | |||||
Basic weighted average common shares | 138,508 | 145,943 | 154,648 | ||||||||
Effect of dilutive securities | 3,922 | 3,280 | 3,436 | ||||||||
Weighted average shares applicable to diluted earnings per share | 142,430 | 149,223 | 158,084 | ||||||||
Basic earnings per share | $ | 3.39 | $ | 2.79 | $ | 2.56 | |||||
Diluted earnings per share | $ | 3.30 | $ | 2.73 | $ | 2.50 | |||||
Financial_Instruments_and_Risk1
Financial Instruments and Risk Management (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Financial Instruments and Risk Management | ||||||||||||||||||||
Schedule of fair value of derivative instruments | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
($ in millions) | Derivatives | Derivatives not | Total | Derivatives | Derivatives not | Total | ||||||||||||||
Designated as | Designated as | Designated as | Designated as | |||||||||||||||||
Hedging | Hedging | Hedging | Hedging | |||||||||||||||||
Instruments | Instruments | Instruments | Instruments | |||||||||||||||||
Assets: | ||||||||||||||||||||
Commodity contracts | $ | 3.8 | $ | 1.3 | $ | 5.1 | $ | 2.6 | $ | 1.7 | $ | 4.3 | ||||||||
Foreign currency contracts | 0.8 | 3.5 | 4.3 | 0.2 | 1.5 | 1.7 | ||||||||||||||
Other contracts | — | — | — | — | 1.1 | 1.1 | ||||||||||||||
Total current derivative contracts | $ | 4.6 | $ | 4.8 | $ | 9.4 | $ | 2.8 | $ | 4.3 | $ | 7.1 | ||||||||
Commodity contracts | $ | 2.2 | $ | 0.5 | $ | 2.7 | $ | — | $ | — | $ | — | ||||||||
Foreign currency contracts | — | — | — | — | 0.1 | 0.1 | ||||||||||||||
Interest contracts | 0.4 | — | 0.4 | — | — | — | ||||||||||||||
Total noncurrent derivative contracts | $ | 2.6 | $ | 0.5 | $ | 3.1 | $ | — | $ | 0.1 | $ | 0.1 | ||||||||
Liabilities: | ||||||||||||||||||||
Commodity contracts | $ | 6.9 | $ | 1.6 | $ | 8.5 | $ | 19.2 | $ | 2.0 | $ | 21.2 | ||||||||
Foreign currency contracts | 1.6 | 1.3 | 2.9 | 1.5 | 6.1 | 7.6 | ||||||||||||||
Interest rate and other contracts | 0.5 | 0.4 | 0.9 | 0.8 | — | 0.8 | ||||||||||||||
Total current derivative contracts | $ | 9.0 | $ | 3.3 | $ | 12.3 | $ | 21.5 | $ | 8.1 | $ | 29.6 | ||||||||
Commodity contracts | $ | 6.8 | $ | 0.5 | $ | 7.3 | $ | 20.3 | $ | — | $ | 20.3 | ||||||||
Interest rate contracts | 0.3 | — | 0.3 | — | — | — | ||||||||||||||
Total noncurrent derivative contracts | $ | 7.1 | $ | 0.5 | $ | 7.6 | $ | 20.3 | $ | — | $ | 20.3 | ||||||||
Schedule of impact on earnings from derivative instruments | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
($ in millions) | Cash Flow | Gain (Loss) on | Cash Flow | Gain (Loss) on | Cash Flow | Gain (Loss) on | ||||||||||||||
Hedge - | Derivatives not | Hedge - | Derivatives not | Hedge - | Derivatives not | |||||||||||||||
Reclassified | Designated as | Reclassified | Designated as | Reclassified | Designated as | |||||||||||||||
Amount from | Hedge | Amount from | Hedge | Amount from | Hedge | |||||||||||||||
Other | Instruments | Other | Instruments | Other | Instruments | |||||||||||||||
Comprehensive | Comprehensive | Comprehensive | ||||||||||||||||||
Earnings (Loss) - | Earnings (Loss) - | Earnings (Loss) - | ||||||||||||||||||
Gain (Loss) | Gain (Loss) | Gain (Loss) | ||||||||||||||||||
Commodity contracts (a) | $ | (33.6 | ) | $ | 4.4 | $ | (26.9 | ) | $ | (2.9 | ) | $ | (56.1 | ) | $ | 3.1 | ||||
Interest rate contracts (b) | — | — | (1.0 | ) | — | (0.5 | ) | — | ||||||||||||
Foreign currency contracts (c) | 0.2 | (25.0 | ) | (0.6 | ) | 7.3 | (1.2 | ) | (20.8 | ) | ||||||||||
Equity contracts (d) | — | (2.6 | ) | — | 0.5 | — | 3.2 | |||||||||||||
Inflation option contracts (e) | — | — | — | 0.1 | — | 0.1 | ||||||||||||||
Total | $ | (33.4 | ) | $ | (23.2 | ) | $ | (28.5 | ) | $ | 5 | $ | (57.8 | ) | $ | (14.4 | ) | |||
(a) | Gains and losses on commodity contracts are recorded in sales and cost of sales in the consolidated statements of earnings. Virtually all these expenses were passed through to our customers, resulting in no significant impact to earnings. | |||||||||||||||||||
(b) | Gains and losses on interest contracts are recorded in interest expense in the consolidated statements of earnings. | |||||||||||||||||||
(c) | Gains and losses on foreign currency contracts to hedge the sales of products are recorded in cost of sales. Gains and losses on foreign currency hedges used for transactions between segments are reflected in selling, general and administrative expenses in the consolidated statements of earnings. | |||||||||||||||||||
(d) | Gains and losses on equity contracts are recorded in selling, general and administrative expenses in the consolidated statements of earnings. | |||||||||||||||||||
(e) | Gains and losses on inflation option contracts are recorded in selling, general and administrative expenses in the consolidated statements of earnings. | |||||||||||||||||||
Schedule of changes in accumulated other comprehensive earnings (loss) for effective derivatives | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Amounts reclassified into earnings: | ||||||||||||||||||||
Commodity contracts | $ | 33.6 | $ | 26.9 | $ | 56.1 | ||||||||||||||
Interest rate contracts | — | 1 | 0.5 | |||||||||||||||||
Currency exchange contracts | (0.2 | ) | 0.6 | 1.2 | ||||||||||||||||
Change in fair value of cash flow hedges: | ||||||||||||||||||||
Commodity contracts | 4.1 | (61.6 | ) | (5.8 | ) | |||||||||||||||
Interest rate contracts | (0.3 | ) | 0.3 | (1.2 | ) | |||||||||||||||
Currency exchange contracts | 0.7 | 2.2 | (0.5 | ) | ||||||||||||||||
Foreign currency and tax impacts | (2.9 | ) | 0.7 | (20.8 | ) | |||||||||||||||
$ | 35 | $ | (29.9 | ) | $ | 29.5 | ||||||||||||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Results of Operations (Unaudited) | |||||||||||||||||
Schedule of quarterly results of operations | ($ in millions, except per share amounts) | First | Second | Third | Fourth | Total | |||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
2014 | |||||||||||||||||
Net sales | $ | 2,006.8 | $ | 2,291.9 | $ | 2,238.9 | $ | 2,032.4 | $ | 8,570.0 | |||||||
Gross profit (a) | 336.5 | 387.9 | 372.4 | 336.9 | 1,433.7 | ||||||||||||
Earnings before taxes | $ | 144.1 | $ | 215.3 | $ | 187.9 | $ | 98.3 | $ | 645.6 | |||||||
Net earnings attributable to Ball Corporation from continuing operations | $ | 93.5 | $ | 153.1 | $ | 147.4 | $ | 76.0 | $ | 470.0 | |||||||
Net earnings attributable to Ball Corporation | $ | 93.5 | $ | 153.1 | $ | 147.4 | $ | 76.0 | $ | 470.0 | |||||||
Basic earnings per share (b): | |||||||||||||||||
Continuing operations | $ | 0.67 | $ | 1.10 | $ | 1.07 | $ | 0.56 | $ | 3.39 | |||||||
Total | $ | 0.67 | $ | 1.10 | $ | 1.07 | $ | 0.56 | $ | 3.39 | |||||||
Diluted earnings per share (b): | |||||||||||||||||
Continuing operations | $ | 0.65 | $ | 1.07 | $ | 1.04 | $ | 0.54 | $ | 3.30 | |||||||
Total | $ | 0.65 | $ | 1.07 | $ | 1.04 | $ | 0.54 | $ | 3.30 | |||||||
2013 | |||||||||||||||||
Net sales | $ | 1,991.0 | $ | 2,202.4 | $ | 2,277.9 | $ | 1,996.8 | $ | 8,468.1 | |||||||
Gross profit (a) | 285.1 | 342.0 | 365.7 | 346.1 | 1,338.9 | ||||||||||||
Earnings before taxes | $ | 98.2 | $ | 129.1 | $ | 164.8 | $ | 191.5 | $ | 583.6 | |||||||
Net earnings attributable to Ball Corporation from continuing operations | $ | 71.9 | $ | 95.1 | $ | 114.9 | $ | 124.5 | $ | 406.4 | |||||||
Net earnings attributable to Ball Corporation | $ | 72.0 | $ | 95.1 | $ | 115.2 | $ | 124.5 | $ | 406.8 | |||||||
Basic earnings per share (b): | |||||||||||||||||
Continuing operations | $ | 0.48 | $ | 0.65 | $ | 0.80 | $ | 0.87 | $ | 2.79 | |||||||
Total | $ | 0.48 | $ | 0.65 | $ | 0.80 | $ | 0.87 | $ | 2.79 | |||||||
Diluted earnings per share (b): | |||||||||||||||||
Continuing operations | $ | 0.47 | $ | 0.63 | $ | 0.78 | $ | 0.85 | $ | 2.73 | |||||||
Total | $ | 0.47 | $ | 0.63 | $ | 0.78 | $ | 0.85 | $ | 2.73 | |||||||
(a) | Gross profit is shown after depreciation and amortization related to cost of sales of $232.8 million and $253.7 million for the years ended December 31, 2014 and 2013, respectively. | ||||||||||||||||
(b) | Earnings per share calculations for each quarter are based on the weighted average shares outstanding for that period. As a result, the sum of the quarterly amounts may not equal the annual earnings per share amount. | ||||||||||||||||
Subsidiary_Guarantees_of_Debt_
Subsidiary Guarantees of Debt (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Subsidiary Guarantees of Debt | |||||||||||||||||
Schedule of Condensed Consolidating Statement of Earnings | Condensed Consolidating Statement of Earnings | ||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||
Corporation | Subsidiaries | Subsidiaries | Adjustments | Total | |||||||||||||
Net sales | $ | — | $ | 5,102.60 | $ | 3,479.30 | $ | (11.9 | ) | $ | 8,570.00 | ||||||
Cost and expenses | |||||||||||||||||
Cost of sales (excluding depreciation and amortization) | — | (4,207.3 | ) | (2,708.1 | ) | 11.9 | (6,903.5 | ) | |||||||||
Depreciation and amortization | (6.4 | ) | (127.5 | ) | (147.0 | ) | — | (280.9 | ) | ||||||||
Selling, general and administrative | (77.4 | ) | (185.5 | ) | (203.6 | ) | — | (466.5 | ) | ||||||||
Business consolidation and other activities | (11.2 | ) | (66.6 | ) | (2.7 | ) | — | (80.5 | ) | ||||||||
Equity in results of subsidiaries | 470.2 | 265.4 | — | (735.6 | ) | — | |||||||||||
Intercompany | 254.8 | (215.8 | ) | (39.0 | ) | — | — | ||||||||||
630 | (4,537.3 | ) | (3,100.4 | ) | (723.7 | ) | (7,731.4 | ) | |||||||||
Earnings (loss) before interest and taxes | 630 | 565.3 | 378.9 | (735.6 | ) | 838.6 | |||||||||||
Interest expense | (150.0 | ) | 3.4 | (13.3 | ) | — | (159.9 | ) | |||||||||
Debt refinancing and other | (33.1 | ) | — | — | — | (33.1 | ) | ||||||||||
Total interest expense | (183.1 | ) | 3.4 | (13.3 | ) | — | (193.0 | ) | |||||||||
Earnings (loss) before taxes | 446.9 | 568.7 | 365.6 | (735.6 | ) | 645.6 | |||||||||||
Tax provision | 23.1 | (99.4 | ) | (73.6 | ) | — | (149.9 | ) | |||||||||
Equity in results of affiliates, net of tax | — | 1.2 | 1.1 | — | 2.3 | ||||||||||||
Net earnings (loss) | 470 | 470.5 | 293.1 | (735.6 | ) | 498 | |||||||||||
Less net earnings attributable to noncontrolling interests | — | — | (28.0 | ) | — | (28.0 | ) | ||||||||||
Net earnings (loss) attributable to Ball Corporation | $ | 470 | $ | 470.5 | $ | 265.1 | $ | (735.6 | ) | $ | 470 | ||||||
Comprehensive earnings attributable to Ball Corporation | $ | 197.9 | $ | 209.6 | $ | 91.6 | $ | (301.2 | ) | $ | 197.9 | ||||||
Condensed Consolidating Statement of Earnings | |||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||
Corporation | Subsidiaries | Subsidiaries | Adjustments | Total | |||||||||||||
Net sales | $ | — | $ | 5,125.50 | $ | 3,364.20 | $ | (21.6 | ) | $ | 8,468.10 | ||||||
Cost and expenses | |||||||||||||||||
Cost of sales (excluding depreciation and amortization) | 0.1 | (4,246.7 | ) | (2,650.4 | ) | 21.6 | (6,875.4 | ) | |||||||||
Depreciation and amortization | (7.5 | ) | (126.7 | ) | (165.7 | ) | — | (299.9 | ) | ||||||||
Selling, general and administrative | (81.4 | ) | (179.9 | ) | (157.3 | ) | — | (418.6 | ) | ||||||||
Business consolidation and other activities | (0.7 | ) | (88.5 | ) | 10.4 | — | (78.8 | ) | |||||||||
Equity in results of subsidiaries | 426.9 | 248.4 | — | (675.3 | ) | — | |||||||||||
Intercompany | 234.1 | (188.3 | ) | (45.8 | ) | — | — | ||||||||||
571.5 | (4,581.7 | ) | (3,008.8 | ) | (653.7 | ) | (7,672.7 | ) | |||||||||
Earnings (loss) before interest and taxes | 571.5 | 543.8 | 355.4 | (675.3 | ) | 795.4 | |||||||||||
Interest expense | (172.0 | ) | 2.5 | (14.3 | ) | — | (183.8 | ) | |||||||||
Debt refinancing and other | (27.9 | ) | — | (0.1 | ) | — | (28.0 | ) | |||||||||
Total interest expense | (199.9 | ) | 2.5 | (14.4 | ) | — | (211.8 | ) | |||||||||
Earnings (loss) before taxes | 371.6 | 546.3 | 341 | (675.3 | ) | 583.6 | |||||||||||
Tax provision | 35.2 | (113.8 | ) | (71.0 | ) | — | (149.6 | ) | |||||||||
Equity in results of affiliates, net of tax | — | 0.4 | 0.2 | — | 0.6 | ||||||||||||
Net earnings (loss) from continuing operations | 406.8 | 432.9 | 270.2 | (675.3 | ) | 434.6 | |||||||||||
Discontinued operations, net of tax | — | 0.4 | — | — | 0.4 | ||||||||||||
Net earnings (loss) | 406.8 | 433.3 | 270.2 | (675.3 | ) | 435 | |||||||||||
Less net earnings attributable to noncontrolling interests | — | — | (28.2 | ) | — | (28.2 | ) | ||||||||||
Net earnings (loss) attributable to Ball Corporation | $ | 406.8 | $ | 433.3 | $ | 242 | $ | (675.3 | ) | $ | 406.8 | ||||||
Comprehensive earnings attributable to Ball Corporation (a) | $ | 519 | $ | 533.2 | $ | 261.3 | $ | (794.5 | ) | $ | 519 | ||||||
(a) | Amounts have been revised; further details are included in “Revision of Prior Period Financial Statements Related to Deferred Taxes” section of Note 1. | ||||||||||||||||
Condensed Consolidating Statement of Earnings | |||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||
Corporation | Subsidiaries | Subsidiaries | Adjustments | Total | |||||||||||||
Net sales | $ | — | $ | 5,477.30 | $ | 3,272.50 | $ | (14.1 | ) | $ | 8,735.70 | ||||||
Cost and expenses | |||||||||||||||||
Cost of sales (excluding depreciation and amortization) | 0.1 | (4,589.5 | ) | (2,598.7 | ) | 14.1 | (7,174.0 | ) | |||||||||
Depreciation and amortization | (5.8 | ) | (125.7 | ) | (151.4 | ) | — | (282.9 | ) | ||||||||
Selling, general and administrative | (69.4 | ) | (186.6 | ) | (129.5 | ) | — | (385.5 | ) | ||||||||
Business consolidation and other activities | (11.3 | ) | (55.0 | ) | (36.5 | ) | — | (102.8 | ) | ||||||||
Equity in results of subsidiaries (a) | 408.6 | 240.4 | — | (649.0 | ) | — | |||||||||||
Intercompany | 236 | (201.8 | ) | (34.2 | ) | — | — | ||||||||||
558.2 | (4,918.2 | ) | (2,950.3 | ) | (634.9 | ) | (7,945.2 | ) | |||||||||
Earnings (loss) before interest and taxes (a) | 558.2 | 559.1 | 322.2 | (649.0 | ) | 790.5 | |||||||||||
Interest expense | (166.2 | ) | 1.4 | (15.0 | ) | — | (179.8 | ) | |||||||||
Debt refinancing and other | (15.1 | ) | — | — | — | (15.1 | ) | ||||||||||
Total interest expense | (181.3 | ) | 1.4 | (15.0 | ) | — | (194.9 | ) | |||||||||
Earnings (loss) before taxes (a) | 376.9 | 560.5 | 307.2 | (649.0 | ) | 595.6 | |||||||||||
Tax provision (a) | 19.4 | (112.6 | ) | (79.0 | ) | — | (172.2 | ) | |||||||||
Equity in results of affiliates, net of tax | — | 1 | (2.3 | ) | — | (1.3 | ) | ||||||||||
Net earnings (loss) from continuing operations (a) | 396.3 | 448.9 | 225.9 | (649.0 | ) | 422.1 | |||||||||||
Discontinued operations, net of tax | — | (2.8 | ) | — | — | (2.8 | ) | ||||||||||
Net earnings (loss) (a) | 396.3 | 446.1 | 225.9 | (649.0 | ) | 419.3 | |||||||||||
Less net earnings attributable to noncontrolling interests | — | — | (23.0 | ) | — | (23.0 | ) | ||||||||||
Net earnings (loss) attributable to Ball Corporation (a) | $ | 396.3 | $ | 446.1 | $ | 202.9 | $ | (649.0 | ) | $ | 396.3 | ||||||
Comprehensive earnings attributable to Ball Corporation | $ | 386.3 | $ | 413.7 | $ | 210.8 | $ | (624.5 | ) | $ | 386.3 | ||||||
(a) | Amounts have been revised; further details are included in “Revision of Prior Period Financial Statements Related to Deferred Taxes” section of Note 1. | ||||||||||||||||
Schedule of Condensed Consolidating Balance Sheet | |||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||
Corporation | Subsidiaries | Subsidiaries | Adjustments | Total | |||||||||||||
ASSETS | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 1.5 | $ | 0.4 | $ | 189.5 | $ | — | $ | 191.4 | |||||||
Receivables, net | 43.7 | 241.3 | 672.1 | — | 957.1 | ||||||||||||
Intercompany receivables | 94 | 99.9 | 4.3 | (198.2 | ) | — | |||||||||||
Inventories, net | — | 575 | 441.7 | — | 1,016.70 | ||||||||||||
Deferred taxes and other current assets | 3.1 | 75.1 | 70.1 | — | 148.3 | ||||||||||||
Total current assets | 142.3 | 991.7 | 1,377.70 | (198.2 | ) | 2,313.50 | |||||||||||
Non-current assets | |||||||||||||||||
Property, plant and equipment, net | 15.1 | 968 | 1,447.60 | — | 2,430.70 | ||||||||||||
Investment in subsidiaries | 3,152.70 | 2,212.20 | 78.6 | (5,443.5 | ) | — | |||||||||||
Goodwill | — | 931 | 1,323.50 | — | 2,254.50 | ||||||||||||
Intangibles and other assets, net | 232.4 | 93.5 | 246.4 | — | 572.3 | ||||||||||||
Total assets | $ | 3,542.50 | $ | 5,196.40 | $ | 4,473.80 | $ | (5,641.7 | ) | $ | 7,571.00 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities | |||||||||||||||||
Short-term debt and current portion of long-term debt | $ | 1.9 | $ | 7.6 | $ | 165.6 | $ | — | $ | 175.1 | |||||||
Accounts payable | 7.1 | 732.5 | 600.4 | — | 1,340.00 | ||||||||||||
Intercompany payables | 99.7 | 1.5 | 97 | (198.2 | ) | — | |||||||||||
Accrued employee costs | 22.3 | 155.6 | 92 | — | 269.9 | ||||||||||||
Other current liabilities | 51.6 | 38 | 132.2 | — | 221.8 | ||||||||||||
Total current liabilities | 182.6 | 935.2 | 1,087.20 | (198.2 | ) | 2,006.80 | |||||||||||
Non-current liabilities | |||||||||||||||||
Long-term debt | 2,750.00 | 0.2 | 243.6 | — | 2,993.80 | ||||||||||||
Employee benefit obligations | 329.4 | 432.7 | 416.2 | — | 1,178.30 | ||||||||||||
Deferred taxes and other liabilities | (752.6 | ) | 601.8 | 303.3 | — | 152.5 | |||||||||||
Total liabilities | 2,509.40 | 1,969.90 | 2,050.30 | (198.2 | ) | 6,331.40 | |||||||||||
Common stock | 1,131.30 | 2,293.50 | 534 | (2,827.5 | ) | 1,131.30 | |||||||||||
Preferred stock | — | — | 4.8 | (4.8 | ) | — | |||||||||||
Retained earnings | 4,346.90 | 1,389.40 | 1,839.90 | (3,229.3 | ) | 4,346.90 | |||||||||||
Accumulated other comprehensive earnings (loss) | (522.1 | ) | (456.4 | ) | (161.7 | ) | 618.1 | (522.1 | ) | ||||||||
Treasury stock, at cost | (3,923.0 | ) | — | — | — | (3,923.0 | ) | ||||||||||
Total Ball Corporation shareholders’ equity | 1,033.10 | 3,226.50 | 2,217.00 | (5,443.5 | ) | 1,033.10 | |||||||||||
Noncontrolling interests | — | — | 206.5 | — | 206.5 | ||||||||||||
Total shareholders’ equity | 1,033.10 | 3,226.50 | 2,423.50 | (5,443.5 | ) | 1,239.60 | |||||||||||
Total liabilities and shareholders’ equity | $ | 3,542.50 | $ | 5,196.40 | $ | 4,473.80 | $ | (5,641.7 | ) | $ | 7,571.00 | ||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||
Corporation | Subsidiaries | Subsidiaries | Adjustments | Total | |||||||||||||
ASSETS | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 218.6 | $ | 0.3 | $ | 197.1 | $ | — | $ | 416 | |||||||
Receivables, net | 2.9 | 133.9 | 722.6 | — | 859.4 | ||||||||||||
Intercompany receivables | 178.9 | 99.1 | 1 | (279.0 | ) | — | |||||||||||
Inventories, net | — | 601.7 | 426.6 | — | 1,028.30 | ||||||||||||
Deferred taxes and other current assets (a) | 4 | 109.7 | 53.5 | — | 167.2 | ||||||||||||
Total current assets (a) | 404.4 | 944.7 | 1,400.80 | (279.0 | ) | 2,470.90 | |||||||||||
Property, plant and equipment, net | 14.9 | 877.5 | 1,479.90 | — | 2,372.30 | ||||||||||||
Investment in subsidiaries | 4,452.30 | 2,122.00 | 78.6 | (6,652.9 | ) | — | |||||||||||
Goodwill (a) | — | 935.6 | 1,464.10 | — | 2,399.70 | ||||||||||||
Intangibles and other assets, net | 206.9 | 100.9 | 269.7 | — | 577.5 | ||||||||||||
Total assets (a) | $ | 5,078.50 | $ | 4,980.70 | $ | 4,693.10 | $ | (6,931.9 | ) | $ | 7,820.40 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities | |||||||||||||||||
Short-term debt and current portion of long-term debt | $ | 310.8 | $ | 30.1 | $ | 81.7 | $ | — | $ | 422.6 | |||||||
Accounts payable | 6.9 | 525.3 | 466.6 | — | 998.8 | ||||||||||||
Intercompany payables | 95.1 | 0.4 | 183.5 | (279.0 | ) | — | |||||||||||
Accrued employee costs | 22.5 | 133.7 | 85.1 | — | 241.3 | ||||||||||||
Other current liabilities | 10 | 138.5 | 116.2 | — | 264.7 | ||||||||||||
Total current liabilities | 445.3 | 828 | 933.1 | (279.0 | ) | 1,927.40 | |||||||||||
Long-term debt | 2,750.00 | 0.5 | 432 | — | 3,182.50 | ||||||||||||
Employee benefit obligations | 284.4 | 310.9 | 437.7 | — | 1,033.00 | ||||||||||||
Deferred taxes and other liabilities (a) | 374.2 | (684.1 | ) | 571.4 | — | 261.5 | |||||||||||
Total liabilities (a) | 3,853.90 | 455.3 | 2,374.20 | (279.0 | ) | 6,404.40 | |||||||||||
Common stock | 1,078.40 | 847.1 | 531.1 | (1,378.2 | ) | 1,078.40 | |||||||||||
Preferred stock | — | — | 4.8 | (4.8 | ) | — | |||||||||||
Retained earnings (a) | 3,947.70 | 3,873.80 | 1,579.80 | (5,453.6 | ) | 3,947.70 | |||||||||||
Accumulated other comprehensive earnings (loss) (a) | (249.9 | ) | (195.5 | ) | 11.8 | 183.7 | (249.9 | ) | |||||||||
Treasury stock, at cost | (3,551.6 | ) | — | — | — | (3,551.6 | ) | ||||||||||
Total Ball Corporation shareholders’ equity (a) | 1,224.60 | 4,525.40 | 2,127.50 | (6,652.9 | ) | 1,224.60 | |||||||||||
Noncontrolling interests | — | — | 191.4 | — | 191.4 | ||||||||||||
Total shareholders’ equity (a) | 1,224.60 | 4,525.40 | 2,318.90 | (6,652.9 | ) | 1,416.00 | |||||||||||
Total liabilties and shareholders’ equity (a) | $ | 5,078.50 | $ | 4,980.70 | $ | 4,693.10 | $ | (6,931.9 | ) | $ | 7,820.40 | ||||||
(a) | Amounts have been revised; further details are included in “Revision of Prior Period Financial Statements Related to Deferred Taxes” section of Note 1. | ||||||||||||||||
Schedule of Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Consolidated | |||||||||||||
Corporation | Subsidiaries | Subsidiaries | Total | ||||||||||||||
Cash provided by (used in) operating activities | $ | 68.3 | $ | 367.8 | $ | 576.4 | $ | 1,012.50 | |||||||||
Cash flows from investing activities | |||||||||||||||||
Capital expenditures | (10.4 | ) | (181.8 | ) | (198.6 | ) | (390.8 | ) | |||||||||
Other, net | (7.9 | ) | (10.3 | ) | 17.6 | (0.6 | ) | ||||||||||
Cash provided by (used in) investing activities | (18.3 | ) | (192.1 | ) | (181.0 | ) | (391.4 | ) | |||||||||
Cash flows from financing activities | |||||||||||||||||
Long-term borrowings | 375 | — | 36.9 | 411.9 | |||||||||||||
Repayments of long-term borrowings | (690.4 | ) | (0.5 | ) | (206.9 | ) | (897.8 | ) | |||||||||
Net change in short-term borrowings | 1.9 | (22.2 | ) | 88.5 | 68.2 | ||||||||||||
Proceeds from issuances of common stock | 37.2 | — | — | 37.2 | |||||||||||||
Acquisitions of treasury stock | (397.3 | ) | — | — | (397.3 | ) | |||||||||||
Common dividends | (72.7 | ) | — | — | (72.7 | ) | |||||||||||
Intercompany | 470 | (152.9 | ) | (317.1 | ) | — | |||||||||||
Other, net | 17.5 | — | (12.3 | ) | 5.2 | ||||||||||||
Cash provided by (used in) financing activities | (258.8 | ) | (175.6 | ) | (410.9 | ) | (845.3 | ) | |||||||||
Effect of exchange rate changes on cash | (8.3 | ) | — | 7.9 | (0.4 | ) | |||||||||||
Change in cash and cash equivalents | (217.1 | ) | 0.1 | (7.6 | ) | (224.6 | ) | ||||||||||
Cash and cash equivalents — beginning of period | 218.6 | 0.3 | 197.1 | 416 | |||||||||||||
Cash and cash equivalents — end of period | $ | 1.5 | $ | 0.4 | $ | 189.5 | $ | 191.4 | |||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Consolidated | |||||||||||||
Corporation | Subsidiaries | Subsidiaries | Total | ||||||||||||||
Cash provided by (used in) continuing operating activities | $ | (50.5 | ) | $ | 464.7 | $ | 427.1 | $ | 841.3 | ||||||||
Cash provided by (used in) discontinued operating activities | 0.2 | (2.5 | ) | — | (2.3 | ) | |||||||||||
Total cash provided by (used in) operating activities | (50.3 | ) | 462.2 | 427.1 | 839 | ||||||||||||
Cash flows from investing activities | |||||||||||||||||
Capital expenditures | (6.7 | ) | (169.2 | ) | (202.4 | ) | (378.3 | ) | |||||||||
Business acquisition, net of cash acquired | — | (12.5 | ) | (1.7 | ) | (14.2 | ) | ||||||||||
Other, net | (19.6 | ) | (2.5 | ) | 35.5 | 13.4 | |||||||||||
Cash provided by (used in) investing activities | (26.3 | ) | (184.2 | ) | (168.6 | ) | (379.1 | ) | |||||||||
Cash flows from financing activities | |||||||||||||||||
Long-term borrowings | 1,373.00 | 1 | 269.1 | 1,643.10 | |||||||||||||
Repayments of long-term borrowings | (882.7 | ) | — | (412.2 | ) | (1,294.9 | ) | ||||||||||
Net change in short-term borrowings | (25.0 | ) | 29.6 | (62.2 | ) | (57.6 | ) | ||||||||||
Proceeds from issuances of common stock | 32.9 | — | — | 32.9 | |||||||||||||
Acquisitions of treasury stock | (431.7 | ) | — | — | (431.7 | ) | |||||||||||
Common dividends | (75.2 | ) | — | — | (75.2 | ) | |||||||||||
Intercompany | 316.5 | (308.6 | ) | (7.9 | ) | — | |||||||||||
Other, net | (6.0 | ) | — | (14.6 | ) | (20.6 | ) | ||||||||||
Cash provided by (used in) financing activities | 301.8 | (278.0 | ) | (227.8 | ) | (204.0 | ) | ||||||||||
Effect of exchange rate changes on cash | (6.8 | ) | — | (7.2 | ) | (14.0 | ) | ||||||||||
Change in cash and cash equivalents | 218.4 | — | 23.5 | 241.9 | |||||||||||||
Cash and cash equivalents — beginning of period | 0.2 | 0.3 | 173.6 | 174.1 | |||||||||||||
Cash and cash equivalents — end of period | $ | 218.6 | $ | 0.3 | $ | 197.1 | $ | 416 | |||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||
($ in millions) | Ball | Guarantor | Non-Guarantor | Consolidated | |||||||||||||
Corporation | Subsidiaries | Subsidiaries | Total | ||||||||||||||
Cash provided by (used in) continuing operating activities | $ | 44.2 | $ | 394.9 | $ | 419.2 | $ | 858.3 | |||||||||
Cash provided by (used in) discontinued operating activities | (1.8 | ) | (3.3 | ) | — | (5.1 | ) | ||||||||||
Total cash provided by (used in) operating activities | 42.4 | 391.6 | 419.2 | 853.2 | |||||||||||||
Cash flows from investing activities | |||||||||||||||||
Capital expenditures | (5.6 | ) | (115.8 | ) | (183.6 | ) | (305.0 | ) | |||||||||
Business acquisition, net of cash acquired | — | — | (71.2 | ) | (71.2 | ) | |||||||||||
Other, net | 18 | 6 | (3.8 | ) | 20.2 | ||||||||||||
Cash provided by (used in) investing activities | 12.4 | (109.8 | ) | (258.6 | ) | (356.0 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||
Long-term borrowings | 1,246.00 | — | 240.4 | 1,486.40 | |||||||||||||
Repayments of long-term borrowings | (1,016.3 | ) | (0.1 | ) | (55.2 | ) | (1,071.6 | ) | |||||||||
Net change in short-term borrowings | 5 | — | (342.0 | ) | (337.0 | ) | |||||||||||
Proceeds from issuances of common stock | 53.1 | — | — | 53.1 | |||||||||||||
Acquisitions of treasury stock | (547.2 | ) | — | — | (547.2 | ) | |||||||||||
Common dividends | (61.8 | ) | — | — | (61.8 | ) | |||||||||||
Intercompany | 241 | (282.4 | ) | 41.4 | — | ||||||||||||
Other, net | (1.2 | ) | — | (7.6 | ) | (8.8 | ) | ||||||||||
Cash provided by (used in) financing activities | (81.4 | ) | (282.5 | ) | (123.0 | ) | (486.9 | ) | |||||||||
Effect of exchange rate changes on cash | 2.8 | 0.5 | (5.3 | ) | (2.0 | ) | |||||||||||
Change in cash and cash equivalents | (23.8 | ) | (0.2 | ) | 32.3 | 8.3 | |||||||||||
Cash and cash equivalents — beginning of period | 24 | 0.5 | 141.3 | 165.8 | |||||||||||||
Cash and cash equivalents — end of period | $ | 0.2 | $ | 0.3 | $ | 173.6 | $ | 174.1 | |||||||||
Critical_and_Significant_Accou2
Critical and Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2014 | |
item | |
Defined Benefit Pension Plans and Other Employee Benefits | |
Corridor percentage considered for amortization of accumulated actuarial gains and losses | 10.00% |
Revenue Recognition in the Aerospace and Technologies Segment | |
Number of types of long-term sales contracts | 2 |
Cash and Cash Equivalents | |
Maximum original maturity period of highly liquid debt instruments to be considered as cash equivalents | 3 months |
Minimum | |
Depreciation and Amortization | |
Finite-lived intangible assets, including capitalized software costs | 3 years |
Maximum | |
Depreciation and Amortization | |
Finite-lived intangible assets, including capitalized software costs | 23 years |
Buildings and improvements | Minimum | |
Depreciation and Amortization | |
Estimated useful life | 5 years |
Buildings and improvements | Maximum | |
Depreciation and Amortization | |
Estimated useful life | 40 years |
Machinery and equipment | Minimum | |
Depreciation and Amortization | |
Estimated useful life | 2 years |
Machinery and equipment | Maximum | |
Depreciation and Amortization | |
Estimated useful life | 20 years |
Critical_and_Significant_Accou3
Critical and Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
item | |||
Revenue Recognition in the Packaging Segment | |||
Number of basic criteria to be met for recognizing sales of products in the packaging segments | 4 | ||
Research and Development | |||
Research and development expenses | $26.60 | $31.20 | $26.80 |
Depreciation and Amortization | |||
Reduction in depreciation expense and cost of sales, before tax | 34.9 | ||
Reduction in depreciation expense and cost of sales, after tax | 22.3 | ||
Reduction in depreciation expense and cost of sales, per share diluted (in dollars per share) | $0.14 | ||
One-time increase in cost of sales and depreciation expense, before tax | 11 | ||
One-time increase in cost of sales and depreciation expense, after tax | $6.70 | ||
One-time increase in cost of sales and depreciation expense, per share diluted (in dollars per share) | $0.04 |
Critical_and_Significant_Accou4
Critical and Significant Accounting Policies (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Tax provision | ($149.90) | ($149.60) | ($172.20) | ||||||||
Net earnings | 498 | 435 | 419.3 | ||||||||
Net earnings from continuing operations attributable to Ball | 76 | 147.4 | 153.1 | 93.5 | 124.5 | 114.9 | 95.1 | 71.9 | 470 | 406.4 | 399.1 |
Basic - continuing operations (in dollars per share) | $0.56 | $1.07 | $1.10 | $0.67 | $0.87 | $0.80 | $0.65 | $0.48 | $3.39 | $2.79 | $2.58 |
Diluted - continuing operations (in dollars per share) | $0.54 | $1.04 | $1.07 | $0.65 | $0.85 | $0.78 | $0.63 | $0.47 | $3.30 | $2.73 | $2.52 |
As Previously reported | |||||||||||
Tax provision | -165 | ||||||||||
Net earnings | 435 | 426.5 | |||||||||
Net earnings from continuing operations attributable to Ball | 406.3 | ||||||||||
Basic - continuing operations (in dollars per share) | $2.63 | ||||||||||
Diluted - continuing operations (in dollars per share) | $2.57 | ||||||||||
Revisions | |||||||||||
Tax provision | -7.2 | ||||||||||
Net earnings | -7.2 | ||||||||||
Net earnings from continuing operations attributable to Ball | -7.2 | ||||||||||
Basic - continuing operations (in dollars per share) | ($0.05) | ||||||||||
Diluted - continuing operations (in dollars per share) | ($0.05) | ||||||||||
Ball Corporation | |||||||||||
Tax provision | 23.1 | 35.2 | 19.4 | ||||||||
Net earnings | $406.80 | $396.30 |
Critical_and_Significant_Accou5
Critical and Significant Accounting Policies (Details 4) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Net earnings | $498 | $435 | $419.30 | |||
Pension and other postretirement benefits | -108.1 | [1] | 79.7 | [1] | -72.3 | [1] |
Total comprehensive earnings | 225.3 | 547.4 | 409 | |||
Comprehensive earnings attributable to Ball Corporation | 197.9 | 519 | 386.3 | |||
As Previously reported | ||||||
Net earnings | 435 | 426.5 | ||||
Pension and other postretirement benefits | 79.2 | -79.5 | ||||
Total comprehensive earnings | 546.9 | 409 | ||||
Comprehensive earnings attributable to Ball Corporation | 518.5 | 386.3 | ||||
Revisions | ||||||
Net earnings | -7.2 | |||||
Pension and other postretirement benefits | 0.5 | 7.2 | ||||
Total comprehensive earnings | 0.5 | |||||
Comprehensive earnings attributable to Ball Corporation | 0.5 | |||||
Ball Corporation | ||||||
Net earnings | 406.8 | 396.3 | ||||
Comprehensive earnings attributable to Ball Corporation | $197.90 | $519 | $386.30 | |||
[1] | Net of tax (expense) benefit of $69.4 million, $(65.6) million and $40.1 million for the years ended DecemberB 31, 2014, 2013 and 2012, respectively. |
Critical_and_Significant_Accou6
Critical and Significant Accounting Policies (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Deferred taxes and other current assets | $148.30 | $167.20 | $196 | |
Goodwill | 2,254.50 | 2,399.70 | 2,354.80 | |
Intangibles and other assets, net | 572.3 | 577.5 | 544.6 | |
Total assets | 7,571 | 7,820.40 | 7,520.70 | |
Deferred taxes and other liabilities | 152.5 | 261.5 | 197.3 | |
Total liabilities | 6,331.40 | 6,404.40 | 6,206.50 | |
Retained earnings | 4,346.90 | 3,947.70 | 3,614.70 | |
Accumulated other comprehensive earnings (loss) | -522.1 | -249.9 | -362.1 | |
Total shareholders' equity | 1,239.60 | 1,416 | 1,314.20 | 1,402.20 |
As Previously reported | ||||
Deferred taxes and other current assets | 162 | 190.8 | ||
Goodwill | 2,404.30 | 2,359.40 | ||
Intangibles and other assets, net | 577.5 | 531.6 | ||
Total assets | 7,819.80 | 7,507.10 | ||
Deferred taxes and other liabilities | 285.6 | 207.9 | ||
Total liabilities | 6,428.50 | 6,217.10 | ||
Retained earnings | 3,913.80 | 3,580.80 | ||
Accumulated other comprehensive earnings (loss) | -240.7 | -352.4 | ||
Total shareholders' equity | 1,391.30 | 1,290 | 1,378 | |
Revisions | ||||
Deferred taxes and other current assets | 5.2 | 5.2 | ||
Goodwill | -4.6 | -4.6 | ||
Intangibles and other assets, net | 13 | |||
Total assets | 0.6 | 13.6 | ||
Deferred taxes and other liabilities | -24.1 | -10.6 | ||
Total liabilities | -24.1 | -10.6 | ||
Retained earnings | 33.9 | 33.9 | ||
Accumulated other comprehensive earnings (loss) | -9.2 | -9.7 | ||
Total shareholders' equity | 24.7 | 24.2 | ||
Ball Corporation | ||||
Deferred taxes and other current assets | 3.1 | 4 | ||
Intangibles and other assets, net | 232.4 | 206.9 | ||
Total assets | 3,542.50 | 5,078.50 | ||
Deferred taxes and other liabilities | -752.6 | 374.2 | ||
Total liabilities | 2,509.40 | 3,853.90 | ||
Retained earnings | 4,346.90 | 3,947.70 | ||
Accumulated other comprehensive earnings (loss) | -522.1 | -249.9 | ||
Total shareholders' equity | $1,033.10 | $1,224.60 |
Business_Segment_Information_D
Business Segment Information (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Segment Information | |||
Number of reportable segments | 4 | ||
Net Sales | Customer concentration | Coca-Cola Bottlers' Sales & Services Company LLC | |||
Major Customers | |||
Percentage of consolidated net sales | 11.00% | 11.00% | 11.00% |
Net Sales | Customer concentration | MillerCoors LLC and SABMiller plc | |||
Major Customers | |||
Percentage of consolidated net sales | 10.00% | 9.00% | 9.00% |
Net Sales | Customer concentration | U.S. Government | |||
Major Customers | |||
Percentage of consolidated net sales | 10.00% | 10.00% | 9.00% |
Business_Segment_Information_D1
Business Segment Information (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net sales | $2,032.40 | $2,238.90 | $2,291.90 | $2,006.80 | $1,996.80 | $2,277.90 | $2,202.40 | $1,991 | $8,570 | $8,468.10 | $8,735.70 |
Net long-lived assets | 2,803.40 | 2,718.80 | 2,803.40 | 2,718.80 | |||||||
United States | |||||||||||
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net sales | 5,090.70 | 5,103.90 | 5,463.20 | ||||||||
Net long-lived assets | 1,219.40 | 1,099.60 | 1,219.40 | 1,099.60 | |||||||
Brazil | |||||||||||
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net long-lived assets | 458.6 | 465.7 | 458.6 | 465.7 | |||||||
PRC | |||||||||||
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net long-lived assets | 269.2 | 281.2 | 269.2 | 281.2 | |||||||
Germany | |||||||||||
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net long-lived assets | 265.1 | 296.3 | 265.1 | 296.3 | |||||||
Other | |||||||||||
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net long-lived assets | 591.1 | 576 | 591.1 | 576 | |||||||
Foreign | |||||||||||
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net sales | $3,479.30 | $3,364.20 | $3,272.50 |
Business_Segment_Information_D2
Business Segment Information (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Segment Information | |||||||||||
Net sales | $2,032.40 | $2,238.90 | $2,291.90 | $2,006.80 | $1,996.80 | $2,277.90 | $2,202.40 | $1,991 | $8,570 | $8,468.10 | $8,735.70 |
Business consolidation and other activities | -80.5 | -78.8 | -102.8 | ||||||||
Earnings before interest and taxes | 838.6 | 795.4 | 790.5 | ||||||||
Interest expense | -159.9 | -183.8 | -179.8 | ||||||||
Debt refinancing costs | -33.1 | -28 | -15.1 | ||||||||
Total interest expense | -193 | -211.8 | -194.9 | ||||||||
Tax provision | -149.9 | -149.6 | -172.2 | ||||||||
Equity in results of affiliates, net of tax | 2.3 | 0.6 | -1.3 | ||||||||
Net earnings from continuing operations | 498 | 434.6 | 422.1 | ||||||||
Discontinued operations, net of tax | 0.4 | -2.8 | |||||||||
Net earnings | 498 | 435 | 419.3 | ||||||||
Less net earnings attributable to noncontrolling interests | -28 | -28.2 | -23 | ||||||||
Net earnings attributable to Ball Corporation | 76 | 147.4 | 153.1 | 93.5 | 124.5 | 115.2 | 95.1 | 72 | 470 | 406.8 | 396.3 |
Segment depreciation and amortization | |||||||||||
Depreciation and amortization | 280.9 | 299.9 | 282.9 | ||||||||
Segment property, plant and equipment | |||||||||||
Capital expenditures | 390.8 | 378.3 | 305 | ||||||||
Segment Assets | |||||||||||
Assets | 7,571 | 7,820.40 | 7,571 | 7,820.40 | 7,520.70 | ||||||
Segment investments in affiliates | |||||||||||
Investments in affiliates | 33.2 | 33.7 | 33.2 | 33.7 | |||||||
Operating Segments | |||||||||||
Business Segment Information | |||||||||||
Earnings before interest and taxes | 933.5 | 874.4 | 868.2 | ||||||||
Segment depreciation and amortization | |||||||||||
Depreciation and amortization | 274.5 | 292.4 | 275.8 | ||||||||
Segment property, plant and equipment | |||||||||||
Capital expenditures | 380.4 | 371.8 | 299.5 | ||||||||
Segment Assets | |||||||||||
Assets | 7,617 | 7,708.90 | 7,617 | 7,708.90 | |||||||
Operating Segments | Metal beverage packaging, Americas and Asia | |||||||||||
Business Segment Information | |||||||||||
Net sales | 4,246.80 | 4,193.40 | 4,541.70 | ||||||||
Earnings before business consolidation and other activities, and before interest and taxes | 534.8 | 512.4 | 522.9 | ||||||||
Business consolidation and other activities | -7.5 | -3.6 | -52.4 | ||||||||
Earnings before interest and taxes | 527.3 | 508.8 | 470.5 | ||||||||
Segment depreciation and amortization | |||||||||||
Depreciation and amortization | 128.7 | 121.9 | 116.9 | ||||||||
Segment property, plant and equipment | |||||||||||
Capital expenditures | 160.1 | 224 | 173.9 | ||||||||
Segment Assets | |||||||||||
Assets | 3,422.80 | 3,426.40 | 3,422.80 | 3,426.40 | |||||||
Segment investments in affiliates | |||||||||||
Investments in affiliates | 31.3 | 31.9 | 31.3 | 31.9 | |||||||
Operating Segments | Metal beverage packaging, Europe | |||||||||||
Business Segment Information | |||||||||||
Net sales | 1,896.30 | 1,828.30 | 1,771.30 | ||||||||
Earnings before business consolidation and other activities, and before interest and taxes | 222.9 | 182.6 | 182.3 | ||||||||
Business consolidation and other activities | -8.7 | -10.6 | -9.6 | ||||||||
Earnings before interest and taxes | 214.2 | 172 | 172.7 | ||||||||
Segment depreciation and amortization | |||||||||||
Depreciation and amortization | 62.5 | 87 | 82.4 | ||||||||
Segment property, plant and equipment | |||||||||||
Capital expenditures | 108.6 | 75.4 | 45.6 | ||||||||
Segment Assets | |||||||||||
Assets | 2,274.50 | 2,380.10 | 2,274.50 | 2,380.10 | |||||||
Segment investments in affiliates | |||||||||||
Investments in affiliates | 0.5 | 0.4 | 0.5 | 0.4 | |||||||
Operating Segments | Metal food & household products packaging | |||||||||||
Business Segment Information | |||||||||||
Net sales | 1,504.40 | 1,558.60 | 1,559.90 | ||||||||
Earnings before business consolidation and other activities, and before interest and taxes | 154.2 | 177.4 | 167.8 | ||||||||
Business consolidation and other activities | -41.9 | -63.7 | -27.5 | ||||||||
Earnings before interest and taxes | 112.3 | 113.7 | 140.3 | ||||||||
Segment depreciation and amortization | |||||||||||
Depreciation and amortization | 57.1 | 59.4 | 54.6 | ||||||||
Segment property, plant and equipment | |||||||||||
Capital expenditures | 81.6 | 43 | 36.3 | ||||||||
Segment Assets | |||||||||||
Assets | 1,508.10 | 1,556.30 | 1,508.10 | 1,556.30 | |||||||
Operating Segments | Aerospace & technologies | |||||||||||
Business Segment Information | |||||||||||
Net sales | 934.8 | 897.1 | 876.8 | ||||||||
Earnings before business consolidation and other activities, and before interest and taxes | 93.6 | 80.1 | 86.6 | ||||||||
Business consolidation and other activities | -13.9 | -0.2 | -1.9 | ||||||||
Earnings before interest and taxes | 79.7 | 79.9 | 84.7 | ||||||||
Segment depreciation and amortization | |||||||||||
Depreciation and amortization | 26.2 | 24.1 | 21.9 | ||||||||
Segment property, plant and equipment | |||||||||||
Capital expenditures | 30.1 | 29.4 | 43.7 | ||||||||
Segment Assets | |||||||||||
Assets | 411.6 | 346.1 | 411.6 | 346.1 | |||||||
Corporate and Other Costs | |||||||||||
Business Segment Information | |||||||||||
Business consolidation and other activities | -8.5 | -0.7 | -11.4 | ||||||||
Segment depreciation and amortization | |||||||||||
Depreciation and amortization | 6.4 | 7.5 | 7.1 | ||||||||
Segment property, plant and equipment | |||||||||||
Capital expenditures | 10.4 | 6.5 | 5.5 | ||||||||
Segment Assets | |||||||||||
Assets | -46 | 111.5 | -46 | 111.5 | |||||||
Segment investments in affiliates | |||||||||||
Investments in affiliates | 1.4 | 1.4 | 1.4 | 1.4 | |||||||
Corporate and intercompany eliminations | |||||||||||
Business Segment Information | |||||||||||
Net sales | -12.3 | -9.3 | -14 | ||||||||
Undistributed and corporate expenses and intercompany eliminations, net | -86.4 | -78.3 | -66.3 | ||||||||
Business consolidation and other activities | -8.5 | -0.7 | -11.4 | ||||||||
Total undistributed and corporate expenses and intercompany eliminations, net | ($94.90) | ($79) | ($77.70) |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | Dec. 31, 2014 |
Acquisitions | ||||
Payments to acquire businesses, net of cash received | $14.20 | $71.20 | ||
Goodwill recorded on acquisition | 2,399.70 | 2,354.80 | 2,254.50 | |
Envases del Plata S A de C V | ||||
Acquisitions | ||||
Payments to acquire businesses, net of cash received | 57.7 | |||
Business acquired, assumed debt | 72.7 | |||
Number of people employed in facilities | 150 | |||
Goodwill recorded on acquisition | 64 | |||
Tubettificio Europeo S.p.A. (Tubettificio) | ||||
Acquisitions | ||||
Business acquired in cash | $15.30 |
Business_Consolidation_and_Oth2
Business Consolidation and Other Activities (Details) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Aug. 31, 2012 | Dec. 31, 2013 | Nov. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2013 |
item | ||||||||||
oz | ||||||||||
Business consolidation and other activities | ||||||||||
Business consolidation and other activities | ($80.50) | ($78.80) | ($102.80) | |||||||
Accounts receivable balance | 800 | 835.2 | 835.2 | 800 | 835.2 | |||||
Summary of reserve activity by segment related to restructuring activities | ||||||||||
Balance at the beginning of the period | 16.6 | 25.1 | ||||||||
Charges to earnings | 11.8 | 16.9 | ||||||||
Cash payments and other activity | -22.4 | -25.4 | ||||||||
Balance at the end of the period | 6 | 16.6 | 25.1 | 25.1 | 16.6 | 6 | 16.6 | |||
Assets held for sale in connection with facilities closures | 11.7 | 20.4 | 20.4 | 11.7 | 20.4 | |||||
Ball Corporation | ||||||||||
Business consolidation and other activities | ||||||||||
Business consolidation and other activities | -11.2 | -0.7 | -11.3 | |||||||
Corporate and Aerospace and Technologies | ||||||||||
Business consolidation and other activities | ||||||||||
Charges for other insignificant activities | 0.8 | |||||||||
Voluntary and involuntary severance | 3.4 | |||||||||
Charge incurred in connection with headcount reductions, cost-out initiatives and relocation of the company's European headquarters from Germany to Switzerland | 6.2 | |||||||||
Transaction costs related to the acquisition | 2.9 | 2.9 | ||||||||
Operating Segments | Metal beverage packaging, Americas and Asia | ||||||||||
Business consolidation and other activities | ||||||||||
Business consolidation and other activities | -7.5 | -3.6 | -52.4 | |||||||
Non-cash charge for settlements | 13.9 | |||||||||
Gain on Business Interruption Insurance Recovery | 3.5 | |||||||||
Compensation received for reimbursement of severance costs incurred in connection with facilities closure and relocation | 5 | 6.2 | ||||||||
Loss on sale of facilities | -0.4 | |||||||||
Compensation agreement, pretax amount | 72 | |||||||||
Severance | 7.2 | |||||||||
Other costs which will not be compensated | 1.6 | |||||||||
Charges to eliminate 12-ounce beverage can production from facility | 9.7 | |||||||||
Weight of container (in ounces) | 12 | 12 | 12 | 12 | ||||||
Charges related to facilities closure | 1.7 | 11.3 | 2.2 | 50.2 | ||||||
Accelerated depreciation | 4.6 | 19.9 | ||||||||
Severance, pension and other employee benefits | 2.1 | 20.4 | ||||||||
Other closure costs | 3 | |||||||||
Number of facilities closed | 2 | |||||||||
Write down of real property to net realizable value | 5.3 | |||||||||
Obsolescence of tooling and spares | 4.6 | |||||||||
Amount recognized in cost of sales for business interruption | 4.1 | |||||||||
Summary of reserve activity by segment related to restructuring activities | ||||||||||
Balance at the beginning of the period | 1.9 | 16.4 | ||||||||
Charges to earnings | -1.7 | -3.2 | ||||||||
Cash payments and other activity | -0.2 | -11.3 | ||||||||
Balance at the end of the period | 1.9 | 16.4 | 16.4 | 1.9 | 1.9 | |||||
Operating Segments | Metal beverage packaging, Americas and Asia | Land and buildings | ||||||||||
Business consolidation and other activities | ||||||||||
Compensation received for reimbursement of severance costs incurred in connection with facilities closure and relocation | 34 | |||||||||
Gain on sale of property | 26.2 | |||||||||
Operating Segments | Metal beverage packaging, Americas and Asia | Machinery and equipment | ||||||||||
Business consolidation and other activities | ||||||||||
Compensation received for reimbursement of severance costs incurred in connection with facilities closure and relocation | 26.8 | |||||||||
Proceeds from the compensation agreement, amount deferred | 23 | 23 | 23 | |||||||
Amount of reimbursement used to offset costs | 3.8 | |||||||||
Operating Segments | Metal beverage packaging, Europe | ||||||||||
Business consolidation and other activities | ||||||||||
Business consolidation and other activities | -8.7 | -10.6 | -9.6 | |||||||
Charges related to facilities closure | 1.6 | |||||||||
Charge incurred in connection with headcount reductions, cost-out initiatives and relocation of the company's European headquarters from Germany to Switzerland | 6.3 | |||||||||
Charges related to a fire at company's metal beverage container plants | 1.7 | |||||||||
Summary of reserve activity by segment related to restructuring activities | ||||||||||
Charges to earnings | 0.9 | |||||||||
Balance at the end of the period | 0.9 | 0.9 | ||||||||
Operating Segments | Metal food & household products packaging | ||||||||||
Business consolidation and other activities | ||||||||||
Business consolidation and other activities | -41.9 | -63.7 | -27.5 | |||||||
Non-cash charge for settlements | 10.3 | |||||||||
Charges for other insignificant activities | 0.4 | |||||||||
Voluntary and involuntary severance | 6.2 | |||||||||
Charges related to individually insignificant costs | 0.8 | |||||||||
Accounts receivable provision | 27 | 16.5 | ||||||||
Charges related to facilities closure | 5 | 29 | 4.9 | |||||||
Accelerated depreciation | 8.8 | |||||||||
Severance, pension and other employee benefits | 16 | |||||||||
Other closure costs | 3.9 | |||||||||
Accounts receivable balance | 46.5 | 46.5 | 46.5 | |||||||
Charges related to migrate certain hourly employees from a multi-employer defined benefit pension plan to a Ball-sponsored defined benefit pension plan | 5.9 | |||||||||
Income related to settlement of defined benefit pension liabilities | 3.5 | |||||||||
Write down of land and buildings down to net realizable value | 4.2 | |||||||||
Charges related to final settlement of annuities with pension trust | 26.7 | |||||||||
Summary of reserve activity by segment related to restructuring activities | ||||||||||
Balance at the beginning of the period | 14.7 | 3 | ||||||||
Charges to earnings | 12.6 | 19.9 | ||||||||
Cash payments and other activity | -22.2 | -8.2 | ||||||||
Balance at the end of the period | 5.1 | 14.7 | 3 | 3 | 14.7 | 5.1 | 14.7 | |||
Operating Segments | Metal Beverage Packaging, Europe, and Corporate | ||||||||||
Business consolidation and other activities | ||||||||||
Non-cash charge for settlements | 7.2 | |||||||||
Charges for other insignificant activities | 4.8 | 1.1 | ||||||||
Charge incurred in connection with headcount reductions, cost-out initiatives and relocation of the company's European headquarters from Germany to Switzerland | 4.1 | 11.3 | ||||||||
Operating Segments | Aerospace & technologies | ||||||||||
Business consolidation and other activities | ||||||||||
Business consolidation and other activities | -13.9 | -0.2 | -1.9 | |||||||
Non-cash charge for settlements | 13.9 | |||||||||
Summary of reserve activity by segment related to restructuring activities | ||||||||||
Balance at the beginning of the period | 1.9 | |||||||||
Cash payments and other activity | -1.9 | |||||||||
Balance at the end of the period | 1.9 | 1.9 | ||||||||
Corporate and Other Costs | ||||||||||
Business consolidation and other activities | ||||||||||
Business consolidation and other activities | -8.5 | -0.7 | -11.4 | |||||||
Summary of reserve activity by segment related to restructuring activities | ||||||||||
Balance at the beginning of the period | 3.8 | |||||||||
Charges to earnings | 0.2 | |||||||||
Cash payments and other activity | -4 | |||||||||
Balance at the end of the period | 3.8 | 3.8 | ||||||||
Corporate and intercompany eliminations | ||||||||||
Business consolidation and other activities | ||||||||||
Business consolidation and other activities | ($8.50) | ($0.70) | ($11.40) |
Receivables_Details
Receivables (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Receivables | ||
Trade accounts receivable | $800 | $835.20 |
Less allowance for doubtful accounts | -7 | -36.3 |
Net trade accounts receivable | 793 | 798.9 |
Other receivables | 164.1 | 60.5 |
Receivables, net | 957.1 | 859.4 |
Net accounts receivable under long-term contracts, due primarily from agencies of the U.S government and their prime contractors | 205.8 | 144.8 |
Recognized sales value of performance not billed and not yet billable to customers | 133.3 | 99.2 |
Average length of long-term contracts | 2 years 3 months 18 days | |
Average remaining length of contracts | 11 months | |
Customary fees and cost withholdings that will be paid upon milestone or contract completions | 201.7 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for Doubtful Accounts | 7 | 36.3 |
Maximum available sale of the accounts receivables under factoring program | 293 | |
Amount of sale of receivables | 197.6 | 137.5 |
Operating Segments | Metal food & household products packaging | ||
Receivables | ||
Trade accounts receivable | 46.5 | |
Less allowance for doubtful accounts | -27 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for Doubtful Accounts | 27 | |
Latapack-Ball Embalagens Ltda. (Latapack-Ball) | Accounts receivable factoring program | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Uncommitted amount receivables under factoring program | 8 | |
Amount of sale of receivables | $0 | $6 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories | ||
Raw materials and supplies | $479.20 | $465.60 |
Work-in-process and finished goods | 579.2 | 609.6 |
Less inventory reserves | -41.7 | -46.9 |
Inventories, net | $1,016.70 | $1,028.30 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, plant and equipment | |||
Property, plant and equipment, gross | $5,033.20 | $4,929.20 | |
Accumulated depreciation | -2,602.50 | -2,556.90 | |
Net property, plant and equipment | 2,430.70 | 2,372.30 | |
Depreciation expense | 239.5 | 261.3 | 248.3 |
Land | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 64.6 | 67.6 | |
Buildings | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 973.4 | 980.9 | |
Machinery and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 3,612.50 | 3,647.80 | |
Construction-in-progress | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 382.7 | 232.9 | |
Ball Corporation | |||
Property, plant and equipment | |||
Net property, plant and equipment | $15.10 | $14.90 |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill | |||
Balance at the beginning of the period | $2,399.70 | $2,354.80 | |
Business acquisitions and related opening balance sheet adjustments | -6.5 | ||
Business disposition | -1.2 | ||
Effects of currency exchange rates | -144 | 51.4 | |
Balance at the end of the period | 2,254.50 | 2,399.70 | |
Metal beverage packaging, Americas and Asia | |||
Goodwill | |||
Balance at the beginning of the period | 740.7 | 740.7 | |
Business disposition | -1.2 | ||
Balance at the end of the period | 739.5 | 740.7 | |
Metal beverage packaging, Europe | |||
Goodwill | |||
Balance at the beginning of the period | 1,037.20 | 993.2 | |
Effects of currency exchange rates | -123.3 | 44 | |
Balance at the end of the period | 913.9 | 1,037.20 | |
Metal food & household products packaging | |||
Goodwill | |||
Balance at the beginning of the period | 613.2 | 620.9 | |
Business acquisitions and related opening balance sheet adjustments | -15.1 | ||
Effects of currency exchange rates | -20.7 | 7.4 | |
Balance at the end of the period | 592.5 | 613.2 | |
Aerospace & technologies | |||
Goodwill | |||
Business acquisitions and related opening balance sheet adjustments | 8.6 | ||
Balance at the end of the period | $8.60 | $8.60 |
Intangibles_and_Other_Assets_D
Intangibles and Other Assets (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Intangibles and Other Assets | ||||
Investments in affiliates | $33.20 | $33.70 | $33.20 | |
Intangible assets (net of accumulated amortization) | 137.1 | 166.1 | 137.1 | |
Accumulated amortization | 115.2 | 93.7 | 115.2 | |
Capitalized software (net of accumulated amortization) | 62.6 | 65 | 62.6 | |
Accumulated amortization | 103.8 | 91.3 | 103.8 | |
Company and trust-owned life insurance | 168.1 | 150.9 | 168.1 | |
Deferred financing costs | 36.3 | 46.2 | 36.3 | |
Long-term deferred tax assets | 66.5 | 36.5 | 66.5 | |
Other | 68.5 | 79.1 | 68.5 | |
Intangibles and Other Assets | 572.3 | 577.5 | 544.6 | 572.3 |
Amortization expense of intangible assets | 41.4 | 38.6 | 34.6 | |
Total annual intangible asset amortization expense | ||||
2015 | 38.2 | 38.2 | ||
2016 | 34.4 | 34.4 | ||
2017 | 30.5 | 30.5 | ||
2018 | 25.3 | 25.3 | ||
2019 | 17.7 | 17.7 | ||
Thereafter | 49.5 | 49.5 | ||
Operating Segments | Metal food & household products packaging | ||||
Intangibles and Other Assets | ||||
Provision for Doubtful Accounts | $27 | $16.50 |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases | |||
Maximum risk for lease | $27 | ||
Future rental payments required under total noncancelable operating leases | |||
2015 | 37 | ||
2016 | 25.3 | ||
2017 | 20.1 | ||
2018 | 15.3 | ||
2019 | 10.3 | ||
Thereafter | 30.2 | ||
Lease expense for all operating leases | $81.20 | $73.20 | $70.20 |
Debt_and_Interest_Costs_Detail
Debt and Interest Costs (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||
Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 09, 2012 | 31-May-13 | Sep. 30, 2012 | Jun. 30, 2013 | Jan. 10, 2014 | |
Long-term debt | ||||||||||
Other (including discounts and premiums) | $1,700,000 | ($2,000,000) | ||||||||
Long-term Debt, Total | 3,048,800,000 | 3,547,800,000 | ||||||||
Less: Current portion of long-term debt and callable long-term debt | -55,000,000 | -365,300,000 | ||||||||
Long-term debt excluding current maturities | 2,993,800,000 | 3,182,500,000 | ||||||||
Redemption charge included as a component of interest expense | 26,500,000 | |||||||||
Fair value of the long-term debt | 3,100,000,000 | 3,500,000,000 | ||||||||
Carrying value of the long-term debt | 3,000,000,000 | 3,500,000,000 | ||||||||
Letters of credit, outstanding amount | 16,300,000 | 16,500,000 | ||||||||
Interest coverage ratio, minimum | 3.5 | |||||||||
Leverage ratio, maximum | 4 | |||||||||
Long term debt outstanding | ||||||||||
2015 | 55,000,000 | |||||||||
2016 | 62,400,000 | |||||||||
2017 | 102,800,000 | |||||||||
2018 | 53,100,000 | |||||||||
2019 | 13,500,000 | |||||||||
Thereafter | 2,762,000,000 | |||||||||
Total interest paid and accrued | ||||||||||
Interest paid during the year | 168,600,000 | 187,500,000 | 177,300,000 | |||||||
7.125% Senior Notes, due September 2016 | ||||||||||
Long-term debt | ||||||||||
Interest rate (as a percent) | 7.13% | |||||||||
Notes tendered for redemption | 375,000,000 | |||||||||
Redemption price of senior notes (as a percent) | 105.32% | |||||||||
7.375% Senior Notes, due September 2019 | ||||||||||
Long-term debt | ||||||||||
Interest rate (as a percent) | 7.38% | 7.38% | ||||||||
Redemption price of senior notes (as a percent) | 108.01% | |||||||||
Long-term Debt, Total | 315,400,000 | |||||||||
Redemption charge included as a component of interest expense | 33,100,000 | |||||||||
6.75% Senior Notes, due September 2020 | ||||||||||
Long-term debt | ||||||||||
Interest rate (as a percent) | 6.75% | 6.75% | ||||||||
Long-term Debt, Total | 500,000,000 | 500,000,000 | ||||||||
5.75% Senior Notes, due May 2021 | ||||||||||
Long-term debt | ||||||||||
Interest rate (as a percent) | 5.75% | 5.75% | ||||||||
Long-term Debt, Total | 500,000,000 | 500,000,000 | ||||||||
5.00% Senior Notes, due March 2022 | ||||||||||
Long-term debt | ||||||||||
Notes issued | 750,000,000 | |||||||||
Interest rate (as a percent) | 5.00% | 5.00% | ||||||||
Long-term Debt, Total | 750,000,000 | 750,000,000 | ||||||||
4.00% Senior Notes, due November 2023 | ||||||||||
Long-term debt | ||||||||||
Notes issued | 1,000,000,000 | |||||||||
Interest rate (as a percent) | 4.00% | 4.00% | 4.00% | |||||||
Long-term Debt, Total | 1,000,000,000 | 1,000,000,000 | ||||||||
6.625% Senior Notes, due March 2018 | ||||||||||
Long-term debt | ||||||||||
Interest rate (as a percent) | 6.63% | |||||||||
Notes tendered for redemption | 450,000,000 | |||||||||
Redemption price of senior notes (as a percent) | 102.58% | |||||||||
Redemption charge included as a component of interest expense | 15,100,000 | |||||||||
Senior Credit Facilities, due June 2018 (at variable rates) | ||||||||||
Long-term debt | ||||||||||
Write-off of unamortized financing costs | 400,000 | |||||||||
Term A Loan, U.S. dollar denominated | ||||||||||
Long-term debt | ||||||||||
Notes repaid | 125,000,000 | |||||||||
Term B Loan, British sterling denominated | ||||||||||
Long-term debt | ||||||||||
Debt instrument, interest rate (as a percent) | 2.11% | |||||||||
Long-term Debt, Total | 60,800,000 | |||||||||
Term C Loan, euro denominated | ||||||||||
Long-term debt | ||||||||||
Debt instrument, interest rate (as a percent) | 1.65% | 1.86% | ||||||||
Long-term Debt, Total | 92,900,000 | 111,200,000 | ||||||||
Multi-currency revolver, due June 2018 | ||||||||||
Long-term debt | ||||||||||
Long-term Debt, Total | 96,600,000 | |||||||||
Latapack-Ball Notes Payable (at various rates and terms) | ||||||||||
Long-term debt | ||||||||||
Debt instrument, interest rate (as a percent) | 4.14% | 3.58% | ||||||||
Long-term Debt, Total | 204,200,000 | 215,800,000 | ||||||||
Accounts receivable securitization agreement, current | ||||||||||
Long-term debt | ||||||||||
Amount of credit facility outstanding and due on demand | 110,000,000 | |||||||||
Accounts receivable sold under the securitization program | 0 | |||||||||
Accounts receivable securitization agreement, current | Maximum | ||||||||||
Long-term debt | ||||||||||
Maximum borrowing capacity of revolving credit facility | 175,000,000 | |||||||||
Accounts receivable securitization agreement, current | Minimum | ||||||||||
Long-term debt | ||||||||||
Maximum borrowing capacity of revolving credit facility | 85,000,000 | |||||||||
Committed multi-currency revolving credit facilities | ||||||||||
Long-term debt | ||||||||||
Maximum borrowing capacity of revolving credit facility | 1,000,000,000 | |||||||||
Available borrowing capacity under line of credit facility | 984,000,000 | |||||||||
Short-term uncommitted credit facilities | ||||||||||
Long-term debt | ||||||||||
Amount of credit facility outstanding and due on demand | 10,100,000 | |||||||||
Weighted average interest rate of the outstanding short-term facilities (as a percent) | 1.50% | |||||||||
Available borrowing capacity under line of credit facility | $790,000,000 | $57,300,000 |
Taxes_on_Income_Details
Taxes on Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings before income taxes: | |||||||||||
U.S | $279.70 | $242.90 | $295.80 | ||||||||
Foreign | 365.9 | 340.7 | 299.8 | ||||||||
Earnings before taxes | 98.3 | 187.9 | 215.3 | 144.1 | 191.5 | 164.8 | 129.1 | 98.2 | 645.6 | 583.6 | 595.6 |
Current | |||||||||||
U.S. | 50.8 | 47.2 | 54.7 | ||||||||
State and local | 17.7 | 3.6 | 15 | ||||||||
Foreign | 69.5 | 100.4 | 81.3 | ||||||||
Total current | 138 | 151.2 | 151 | ||||||||
Deferred | |||||||||||
U.S. | 8.9 | 28.5 | 25.7 | ||||||||
State and local | -1.1 | -0.7 | 5 | ||||||||
Foreign | 4.1 | -29.4 | -9.5 | ||||||||
Deferred Income Tax Expense (Benefit), Total | 11.9 | -1.6 | 21.2 | ||||||||
Income Tax Expense (Benefit), Total | 149.9 | 149.6 | 172.2 | ||||||||
Tax benefit (expense) related to discontinued operations | -0.2 | 1.7 | |||||||||
Income tax provision reconciliation | |||||||||||
Statutory U.S. federal income tax | 226 | 204.3 | 208.5 | ||||||||
Increase (decrease) due to: | |||||||||||
Foreign tax rate differences | -57.3 | -45.5 | -36.9 | ||||||||
U.S. state and local taxes, net | 6.9 | 1.6 | 12.2 | ||||||||
U.S. taxes on foreign earnings, net of tax credits | 11.8 | 26.4 | 14.5 | ||||||||
U.S. manufacturing deduction | -6.8 | -4.3 | -7.1 | ||||||||
U.S. research and development tax credits | -8.5 | -17.9 | -5.3 | ||||||||
Uncertain tax positions, including interest | -7.9 | -3.4 | -10.3 | ||||||||
Company and trust-owned life insurance | -4.9 | -6.3 | -5.5 | ||||||||
Other, net | -9.4 | -5.3 | 2.1 | ||||||||
Income Tax Expense (Benefit), Total | $149.90 | $149.60 | $172.20 | ||||||||
Effective tax rate expressed as a percentage of pre-tax earnings | 23.20% | 25.60% | 28.90% |
Taxes_on_Income_Details_2
Taxes on Income (Details 2) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Taxes on Income | ||||
Percentage of indirectly held investment for which deferred taxes assets on undistributed earnings is provided | 10.00% | |||
U.S. income | $0 | |||
Amount of earnings of foreign subsidiaries on which deferred taxes have not been provided | 1,799.40 | |||
Federal withholding tax provision | 0 | |||
Net U.S. taxes primarily provided for Brazil, Canada and PRC earnings | 11.8 | 26.4 | 14.5 | |
Net income taxes payments | 163.2 | 111.4 | 143.9 | |
Deferred tax assets: | ||||
Deferred compensation | 105.7 | 104.1 | ||
Accrued employee benefits | 128.1 | 130.6 | ||
Plant closure costs | 3.4 | 15.2 | ||
Accrued pensions | 175.5 | 88.9 | ||
Inventory and other reserves | 19.4 | 24.3 | ||
Net operating losses, foreign tax credits and other tax attributes | 108.8 | 96 | ||
Unrealized losses on currency exchange and derivative transactions | 24.4 | 29.5 | ||
Other | 26.2 | 30 | ||
Total deferred tax assets | 591.5 | 518.6 | ||
Valuation allowance | -92.4 | -85 | ||
Net deferred tax assets | 499.1 | 433.6 | ||
Deferred tax liabilities: | ||||
Depreciation | -242.4 | -244.2 | ||
Goodwill and other intangible assets | -141.1 | -144 | ||
Other | -30.2 | -15.1 | ||
Total deferred tax liabilities | -413.7 | -403.3 | ||
Net deferred tax asset (liability) | 85.4 | 30.3 | ||
Net deferred tax asset (liability) included in the consolidated balance sheets: | ||||
Deferred taxes and other current assets | 54.9 | 83.2 | ||
Intangibles and other assets, net | 66.5 | 36.5 | ||
Other current liabilities | -3.6 | -3 | ||
Deferred taxes and other liabilities | -32.4 | -86.4 | ||
Net deferred tax asset (liability) | 85.4 | 30.3 | ||
Ball's Serbian subsidiary | ||||
Taxes on Income | ||||
Income tax holiday period | 10 years | |||
Income tax credit as percentage of additional local investment | 80.00% | |||
Foreign annual abatement of tax over the income tax holiday period | $21 | |||
Latapack-Ball Embalagens Ltda. (Latapack-Ball) | ||||
Taxes on Income | ||||
Percentage of tax exemption received on certain portion of annual earnings | 19.00% | |||
Number of tax holidays | 2 |
Taxes_on_Income_Details_3
Taxes on Income (Details 3) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Ball Packaging Europe and its subsidiaries | |
Taxes on Income | |
Net operating carryforwards | $54 |
Related tax benefit | 13.1 |
Ball's Canadian subsidiaries | |
Taxes on Income | |
Net operating carryforwards | 101.7 |
Related tax benefit | 27 |
Ball's Mexican subsidiary | |
Taxes on Income | |
Net operating carryforwards | 23.2 |
Related tax benefit | $7 |
Taxes_on_Income_Details_4
Taxes on Income (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
A roll forward of the unrecognized tax benefits related to uncertain income tax positions | |||
Balance at the beginning of the period | $78.30 | $76.60 | $57.40 |
Additions based on tax positions related to the current year | 1.4 | 1.7 | 31.3 |
Additions for tax positions of prior years | 7.7 | 5.5 | 6.2 |
Reductions for settlements | -7.2 | -19.8 | |
Reductions due to lapse of statute of limitations | -16.5 | -0.2 | |
Effect of foreign currency exchange rates | -5.4 | 1.9 | 1.5 |
Balance at the end of the period | 65.5 | 78.3 | 76.6 |
Amount of unrecognized tax benefits that, if recognized, would reduce tax expense | 76.7 | ||
Additional income tax expense related to interest on unrecognized tax benefit | 1.3 | 2.7 | 2.8 |
Accrued interest related to unrecognized tax benefit | 11.2 | 10.4 | |
Annual provision (benefit) for income taxes | 149.9 | 149.6 | 172.2 |
Accrued penalties related to unrecognized tax benefit | 0 | ||
Maximum | |||
A roll forward of the unrecognized tax benefits related to uncertain income tax positions | |||
Amount by which it is reasonably possible that unrecognized tax benefits may decrease within the next 12 months | 20.5 | ||
Ball Corporation | |||
A roll forward of the unrecognized tax benefits related to uncertain income tax positions | |||
Annual provision (benefit) for income taxes | -23.1 | -35.2 | -19.4 |
Foreign | |||
Taxes on Income | |||
Tax credit carryforwards expiring between 2015 and 2024 | $59 |
Employee_Benefit_Obligations_D
Employee Benefit Obligations (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Benefit Obligations | ||||
Underfunded defined benefit pension liabilities | $724.10 | $724.10 | $601.90 | |
Less current portion and prepaid pension assets | -19.4 | -19.4 | -21.4 | |
Long-term defined benefit pension liability | 704.7 | 704.7 | 580.5 | |
Retiree medical and other postemployment benefits | 169 | 169 | 165.9 | |
Deferred compensation plans | 272.2 | 272.2 | 257.1 | |
Other | 32.4 | 32.4 | 29.5 | |
Employee benefit obligations | 1,178.30 | 1,178.30 | 1,033 | |
Imposition of nondeductible excise tax, if a multiemployer defined benefit pension plan fails to satisfy certain minimum funding requirements (as a percent) | 5.00% | |||
Defined Benefit Pension Plans | ||||
Change in projected benefit obligation: | ||||
Benefit obligation at prior year end | 1,988.80 | 2,033.60 | ||
Service cost | 59.7 | 60.8 | 54.9 | |
Interest cost | 87.7 | 79.2 | 85.2 | |
Benefits paid | -84.1 | -107.6 | ||
Net actuarial (gains) losses | 289.4 | -103.9 | ||
Effect of exchange rates | -73.2 | 19.2 | ||
Settlements/ curtailments/ special termination | -102.8 | 5.2 | ||
Plan amendments and other | -6.2 | 2.3 | ||
Benefit obligation at year end | 2,159.30 | 2,159.30 | 1,988.80 | 2,033.60 |
Change in plan assets: | ||||
Fair value of plan assets at the beginning of the period | 1,386.90 | 1,213.40 | ||
Actual return on plan assets | 113.6 | 82.8 | ||
Employer contributions | 121.2 | 173.8 | ||
Benefits paid | -84.1 | -107.6 | ||
Effect of exchange rates | -21.8 | 1.8 | ||
Settlements | -102.8 | -0.8 | ||
Other | 1 | |||
Fair value of plan assets at the end of the period | 1,435.20 | 1,435.20 | 1,386.90 | 1,213.40 |
Underfunded status | -724.1 | -724.1 | -601.9 | |
Amounts recognized in the consolidated balance sheets | ||||
Prepaid pension cost | 1.8 | 1.8 | 2.3 | |
Defined benefit pension liabilities | -725.9 | -725.9 | -604.2 | |
Net amount recognized | -724.1 | -724.1 | -601.9 | |
Amounts recognized in accumulated other comprehensive income | ||||
Net actuarial loss | 789.3 | 789.3 | 615.9 | |
Net prior service cost (credit) | 6 | 6 | 11.5 | |
Tax effect and foreign exchange rates | -289.1 | -289.1 | -234.3 | |
Accumulated other comprehensive earnings (loss) | 506.2 | 506.2 | 393.1 | |
Benefit plans with an accumulated benefit obligation in excess of plan assets | ||||
Projected benefit obligation | 1,856.20 | 1,856.20 | 1,699.30 | |
Accumulated benefit obligation | 1,766.30 | 1,766.30 | 1,630.10 | |
Fair value of plan assets | 1,138.50 | 1,138.50 | 1,149.60 | |
Ball-sponsored plans: | ||||
Service cost | 59.7 | 60.8 | 54.9 | |
Interest cost | 87.7 | 79.2 | 85.2 | |
Expected return on plan assets | -99.6 | -94 | -90.8 | |
Amortization of prior service cost | -0.6 | -0.4 | 0.5 | |
Recognized net actuarial loss | 37.7 | 50.3 | 40.7 | |
Curtailment loss | 45.3 | 7.8 | 25.6 | |
Net periodic benefit cost for Ball-sponsored plans | 130.2 | 103.7 | 116.1 | |
Estimated actuarial net gain (loss) that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during next fiscal year | -49.3 | |||
Estimated prior service cost (benefit) that will be amortized from accumulated other comprehensive earnings (loss) into net periodic benefit cost during next fiscal year | 1.4 | |||
Charge for settlements | 102.8 | 0.8 | ||
Multi-employer plans: | ||||
Net periodic benefit cost, excluding curtailment loss | 2 | 2.6 | 2.7 | |
Curtailment loss | 9.8 | |||
Net periodic benefit cost for multi-employer plans | 2 | 12.4 | 2.7 | |
Total net periodic benefit cost | 132.2 | 116.1 | 118.8 | |
Defined Benefit Pension Plans | Funded plans | ||||
Expected benefit payments | ||||
2015 | 91.6 | 91.6 | ||
2016 | 94.9 | 94.9 | ||
2017 | 98.8 | 98.8 | ||
2018 | 102.1 | 102.1 | ||
2019 | 106 | 106 | ||
Years 2020 through 2024 | 572.8 | 572.8 | ||
Defined Benefit Pension Plans | Unfunded German plans | ||||
Change in plan assets: | ||||
Employer contributions | 22.2 | 22.5 | ||
Underfunded status | 393.9 | 393.9 | 370.3 | |
Expected benefit payments | ||||
Years 2020 through 2024 | 87 | 87 | ||
Defined Benefit Pension Plans | Unfunded German plans | Minimum | ||||
Expected benefit payments | ||||
2015 | 18 | 18 | ||
2016 | 18 | 18 | ||
2017 | 18 | 18 | ||
2018 | 18 | 18 | ||
2019 | 18 | 18 | ||
Defined Benefit Pension Plans | Unfunded German plans | Maximum | ||||
Expected benefit payments | ||||
2015 | 20 | 20 | ||
2016 | 20 | 20 | ||
2017 | 20 | 20 | ||
2018 | 20 | 20 | ||
2019 | 20 | 20 | ||
U.S. | ||||
Change in projected benefit obligation: | ||||
Benefit obligation at prior year end | 1,284.20 | 1,373.60 | ||
Service cost | 46.3 | 48.7 | 47 | |
Interest cost | 62 | 55.2 | 56.5 | |
Benefits paid | -51.4 | -75.4 | ||
Net actuarial (gains) losses | 184 | -122.2 | ||
Settlements/ curtailments/ special termination | -102.8 | 3.5 | ||
Plan amendments and other | -6.2 | 0.8 | ||
Benefit obligation at year end | 1,416.10 | 1,416.10 | 1,284.20 | 1,373.60 |
Change in plan assets: | ||||
Fair value of plan assets at the beginning of the period | 1,109.50 | 952 | ||
Actual return on plan assets | 48.4 | 76.2 | ||
Employer contributions | 94.3 | 157.5 | ||
Benefits paid | -51.4 | -75.4 | ||
Settlements | -102.8 | -0.8 | ||
Noncash charge for settlement | 45.3 | |||
Fair value of plan assets at the end of the period | 1,098 | 1,098 | 1,109.50 | 952 |
Underfunded status | -318.1 | -318.1 | -174.7 | |
Accumulated benefit obligation | 1,355.20 | 1,355.20 | 1,236.70 | |
Amounts recognized in the consolidated balance sheets | ||||
Defined benefit pension liabilities | -318.1 | -318.1 | -174.7 | |
Net amount recognized | -318.1 | -318.1 | -174.7 | |
Amounts recognized in accumulated other comprehensive income | ||||
Net actuarial loss | 606.3 | 606.3 | 462.9 | |
Net prior service cost (credit) | 7.9 | 7.9 | 13.9 | |
Tax effect and foreign exchange rates | -239 | -239 | -187 | |
Accumulated other comprehensive earnings (loss) | 375.2 | 375.2 | 289.8 | |
Benefit plans with an accumulated benefit obligation in excess of plan assets | ||||
Projected benefit obligation | 1,416 | 1,416 | 1,284.10 | |
Accumulated benefit obligation | 1,355.20 | 1,355.20 | 1,236.70 | |
Fair value of plan assets | 1,098 | 1,098 | 1,109.50 | |
Ball-sponsored plans: | ||||
Service cost | 46.3 | 48.7 | 47 | |
Interest cost | 62 | 55.2 | 56.5 | |
Expected return on plan assets | -82.6 | -77.3 | -73.9 | |
Amortization of prior service cost | -0.1 | 0.9 | ||
Recognized net actuarial loss | 29.5 | 42.5 | 33.7 | |
Curtailment loss | 45.3 | 6.1 | -0.1 | |
Net periodic benefit cost for Ball-sponsored plans | 100.4 | 75.2 | 64.1 | |
Charge for settlements | 102.8 | 0.8 | ||
Multi-employer plans: | ||||
Net periodic benefit cost, excluding curtailment loss | 2 | 2.6 | 2.7 | |
Curtailment loss | 9.8 | |||
Net periodic benefit cost for multi-employer plans | 2 | 12.4 | 2.7 | |
Total net periodic benefit cost | 102.4 | 87.6 | 66.8 | |
Foreign | ||||
Change in projected benefit obligation: | ||||
Benefit obligation at prior year end | 704.6 | 660 | ||
Service cost | 13.4 | 12.1 | 7.9 | |
Interest cost | 25.7 | 24 | 28.7 | |
Benefits paid | -32.7 | -32.2 | ||
Net actuarial (gains) losses | 105.4 | 18.3 | ||
Effect of exchange rates | -73.2 | 19.2 | ||
Settlements/ curtailments/ special termination | 1.7 | |||
Plan amendments and other | 1.5 | |||
Benefit obligation at year end | 743.2 | 743.2 | 704.6 | 660 |
Change in plan assets: | ||||
Fair value of plan assets at the beginning of the period | 277.4 | 261.4 | ||
Actual return on plan assets | 65.2 | 6.6 | ||
Employer contributions | 26.9 | 16.3 | ||
Benefits paid | -32.7 | -32.2 | ||
Effect of exchange rates | -21.8 | 1.8 | ||
Other | 1 | |||
Fair value of plan assets at the end of the period | 337.2 | 337.2 | 277.4 | 261.4 |
Underfunded status | -406 | -406 | -427.2 | |
Accumulated benefit obligation | 675.1 | 675.1 | 628.2 | |
Amounts recognized in the consolidated balance sheets | ||||
Prepaid pension cost | 1.8 | 1.8 | 2.3 | |
Defined benefit pension liabilities | -407.8 | -407.8 | -429.5 | |
Net amount recognized | -406 | -406 | -427.2 | |
Amounts recognized in accumulated other comprehensive income | ||||
Net actuarial loss | 183 | 183 | 153 | |
Net prior service cost (credit) | -1.9 | -1.9 | -2.4 | |
Tax effect and foreign exchange rates | -50.1 | -50.1 | -47.3 | |
Accumulated other comprehensive earnings (loss) | 131 | 131 | 103.3 | |
Benefit plans with an accumulated benefit obligation in excess of plan assets | ||||
Projected benefit obligation | 440.2 | 440.2 | 415.2 | |
Accumulated benefit obligation | 411.1 | 411.1 | 393.4 | |
Fair value of plan assets | 40.5 | 40.5 | 40.1 | |
Ball-sponsored plans: | ||||
Service cost | 13.4 | 12.1 | 7.9 | |
Interest cost | 25.7 | 24 | 28.7 | |
Expected return on plan assets | -17 | -16.7 | -16.9 | |
Amortization of prior service cost | -0.5 | -0.4 | -0.4 | |
Recognized net actuarial loss | 8.2 | 7.8 | 7 | |
Curtailment loss | 1.7 | 25.7 | ||
Net periodic benefit cost for Ball-sponsored plans | 29.8 | 28.5 | 52 | |
Charge for settlement as adjusted | 27.1 | |||
Multi-employer plans: | ||||
Total net periodic benefit cost | 29.8 | 28.5 | 52 | |
Foreign | Unfunded German plans | ||||
Change in plan assets: | ||||
Employer contributions | 22.2 | 22.5 | ||
Other post retirement benefits | ||||
Change in projected benefit obligation: | ||||
Benefit obligation at prior year end | 155.4 | 168.2 | ||
Service cost | 1.4 | 1.7 | 1.6 | |
Interest cost | 7.3 | 6.6 | 7.4 | |
Benefits paid | -11.4 | -12.5 | ||
Net actuarial (gains) losses | 3.1 | -9.1 | ||
Special termination benefits | 1.9 | |||
Effect of exchange rates | -1.7 | -1.4 | ||
Benefit obligation at year end | 154.1 | 154.1 | 155.4 | 168.2 |
Change in plan assets: | ||||
Benefits paid | -11.4 | -12.5 | ||
Ball-sponsored plans: | ||||
Service cost | 1.4 | 1.7 | 1.6 | |
Interest cost | 7.3 | 6.6 | 7.4 | |
Amortization of prior service cost | -0.5 | -0.5 | -0.1 | |
Recognized net actuarial loss | -1.5 | -0.6 | -1 | |
Net periodic benefit cost for Ball-sponsored plans | 6.7 | 9.1 | 7.9 | |
Estimated actuarial net gain (loss) that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during next fiscal year | 1.1 | |||
Estimated prior service cost (benefit) that will be amortized from accumulated other comprehensive earnings (loss) into net periodic benefit cost during next fiscal year | ($0.60) |
Employee_Benefit_Obligations_D1
Employee Benefit Obligations (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Weighted-average assumptions used to determine net periodic benefit cost for years ended | |||
Market related value of plan assets used to calculate expected return | $1,470.90 | $1,238.50 | $1,179.80 |
Corridor percentage considered for amortization of accumulated actuarial gains and losses | 10.00% | ||
Defined Benefit Pension Plans | |||
Weighted-average assumptions used to determine benefit obligations | |||
Effect of one quarter of a percentage point reduction in the expected return on pension assets assumption, on pension expense | 3.6 | ||
Effect of quarter of a percentage point reduction in the discount rate applied to the pension liability, on pension expense | $5.40 | ||
Weighted-average assumptions used to determine net periodic benefit cost for years ended | |||
Corridor percentage considered for amortization of accumulated actuarial gains and losses | 10.00% | ||
U.S. | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (as a percent) | 4.15% | 5.00% | 4.13% |
Rate of compensation increase (as a percent) | 4.80% | 4.80% | 4.80% |
Weighted-average assumptions used to determine net periodic benefit cost for years ended | |||
Discount rate (as a percent) | 5.00% | 4.13% | 4.75% |
Rate of compensation increase (as a percent) | 4.80% | 4.80% | 4.80% |
Expected long-term rate of return on assets (as a percent) | 7.25% | 7.63% | 7.75% |
Canada. | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (as a percent) | 3.50% | 4.25% | 4.00% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 3.00% |
Weighted-average assumptions used to determine net periodic benefit cost for years ended | |||
Discount rate (as a percent) | 4.25% | 4.00% | 4.05% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 3.00% |
Expected long-term rate of return on assets (as a percent) | 4.56% | 4.55% | 4.53% |
Time period for review of the expected benefit payments to select discount rate | 60 years | ||
United Kingdom. | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (as a percent) | 3.75% | 4.50% | 4.50% |
Rate of compensation increase (as a percent) | 3.00% | 4.25% | 3.75% |
Pension increase (as a percent) | 3.15% | 3.40% | 2.90% |
Weighted-average assumptions used to determine net periodic benefit cost for years ended | |||
Discount rate (as a percent) | 4.50% | 4.50% | 5.00% |
Rate of compensation increase (as a percent) | 4.25% | 3.75% | 3.90% |
Pension increase (as a percent) | 3.40% | 2.90% | 3.05% |
Expected long-term rate of return on assets (as a percent) | 6.50% | 7.00% | 7.00% |
Minimum term of bond used to discount cash flows for determining equivalent level discount rate | 15 years | ||
Germany. | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (as a percent) | 1.75% | 3.25% | 3.25% |
Rate of compensation increase (as a percent) | 2.50% | 2.75% | 2.75% |
Pension increase (as a percent) | 1.75% | 1.75% | 1.75% |
Weighted-average assumptions used to determine net periodic benefit cost for years ended | |||
Discount rate (as a percent) | 3.25% | 3.25% | 5.00% |
Rate of compensation increase (as a percent) | 2.75% | 2.75% | 2.75% |
Pension increase (as a percent) | 1.75% | 1.75% | 1.75% |
Minimum term of bond used to discount cash flows for determining equivalent level discount rate | 15 years |
Employee_Benefit_Obligations_D2
Employee Benefit Obligations (Details 3) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Pension Plans | ||
Target asset allocations | ||
Weighted average asset allocations (as a percent) | 100.00% | 100.00% |
Defined Benefit Pension Plans | Cash and cash equivalents | ||
Target asset allocations | ||
Weighted average asset allocations (as a percent) | 3.00% | 6.00% |
Defined Benefit Pension Plans | Corporate equity securities | ||
Target asset allocations | ||
Weighted average asset allocations (as a percent) | 38.00% | 37.00% |
Defined Benefit Pension Plans | Fixed income securities | ||
Target asset allocations | ||
Weighted average asset allocations (as a percent) | 50.00% | 49.00% |
Defined Benefit Pension Plans | Alternative investments | ||
Target asset allocations | ||
Weighted average asset allocations (as a percent) | 9.00% | 8.00% |
U.S. | Cash and cash equivalents | ||
Target asset allocations | ||
Target asset allocations, low end of range (as a percent) | 0.00% | |
Target asset allocations, high end of range (as a percent) | 10.00% | |
U.S. | Corporate equity securities | ||
Target asset allocations | ||
Target asset allocations, low end of range (as a percent) | 10.00% | |
Target asset allocations, high end of range (as a percent) | 75.00% | |
U.S. | Fixed income securities | ||
Target asset allocations | ||
Target asset allocations, low end of range (as a percent) | 25.00% | |
Target asset allocations, high end of range (as a percent) | 70.00% | |
U.S. | Alternative investments | ||
Target asset allocations | ||
Target asset allocations, low end of range (as a percent) | 0.00% | |
Target asset allocations, high end of range (as a percent) | 35.00% | |
U.S. | Large-cap equities | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 25.00% | |
U.S. | Mid-cap equities | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 10.00% | |
U.S. | Small-cap equities | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 10.00% | |
U.S. | Foreign equities | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 35.00% | |
U.S. | Special equities | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 35.00% | |
U.S. | Holdings in Ball Corporation common stock or Ball bonds | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 5.00% | |
U.S. | Non-investment grade bonds | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 10.00% | |
U.S. | Bank loans | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 10.00% | |
U.S. | International bonds | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 15.00% | |
Canada. | Cash and cash equivalents | ||
Target asset allocations | ||
Target asset allocations, low end of range (as a percent) | 0.00% | |
Target asset allocations, high end of range (as a percent) | 2.00% | |
Canada. | Corporate equity securities | ||
Target asset allocations | ||
Target asset allocations, low end of range (as a percent) | 8.00% | |
Target asset allocations, high end of range (as a percent) | 12.00% | |
Canada. | Fixed income securities | ||
Target asset allocations | ||
Target asset allocations, low end of range (as a percent) | 88.00% | |
Target asset allocations, high end of range (as a percent) | 92.00% | |
United Kingdom. | Corporate equity securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 25.00% | |
United Kingdom. | Fixed income securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 61.00% | |
United Kingdom. | Absolute return funds | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 6.00% | |
United Kingdom. | Alternative investments | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 8.00% |
Employee_Benefit_Obligations_D3
Employee Benefit Obligations (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Pension Plans | |||
Employee Benefit Obligations | |||
Total assets | $1,435.20 | $1,386.90 | $1,213.40 |
U.S. | |||
Employee Benefit Obligations | |||
Total assets | 1,098 | 1,109.50 | 952 |
U.S. | Cash and cash equivalents | |||
Employee Benefit Obligations | |||
Total assets | 89.6 | 150.3 | |
U.S. | Consumer discretionary Securities | |||
Employee Benefit Obligations | |||
Total assets | 53.8 | ||
U.S. | Industrials corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 58.7 | 54.7 | |
U.S. | Information technology corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 57.5 | 55.3 | |
U.S. | Other corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 151 | 187.5 | |
U.S. | U.S. government and agency securities-FHLMC mortgage backed securities | |||
Employee Benefit Obligations | |||
Total assets | 14.7 | 17.5 | |
U.S. | U.S. government and agency securities-FNMA mortgage backed securities | |||
Employee Benefit Obligations | |||
Total assets | 49.9 | 43.1 | |
U.S. | U.S. government and agency securities-Other | |||
Employee Benefit Obligations | |||
Total assets | 62.2 | 51.3 | |
U.S. | Corporate bonds and notes-Financials | |||
Employee Benefit Obligations | |||
Total assets | 96.5 | 105.2 | |
U.S. | Corporate bonds and notes-Utilities | |||
Employee Benefit Obligations | |||
Total assets | 33.4 | 37.4 | |
U.S. | Corporate bonds and notes-Private placement | |||
Employee Benefit Obligations | |||
Total assets | 44.8 | 45.4 | |
U.S. | Corporate bonds and notes-Other | |||
Employee Benefit Obligations | |||
Total assets | 113.5 | 108.4 | |
U.S. | Commingled funds | |||
Employee Benefit Obligations | |||
Total assets | 134.7 | ||
U.S. | International Commingled Funds | |||
Employee Benefit Obligations | |||
Total assets | 88.2 | ||
U.S. | Other Commingled Funds | |||
Employee Benefit Obligations | |||
Total assets | 53.6 | ||
U.S. | Limited partnerships and other | |||
Employee Benefit Obligations | |||
Total assets | 130.6 | 118.7 | |
U.S. | Level 1 | |||
Employee Benefit Obligations | |||
Total assets | 359.4 | 326.3 | |
U.S. | Level 1 | Cash and cash equivalents | |||
Employee Benefit Obligations | |||
Total assets | 0.9 | 0.5 | |
U.S. | Level 1 | Consumer discretionary Securities | |||
Employee Benefit Obligations | |||
Total assets | 53.8 | ||
U.S. | Level 1 | Industrials corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 58.7 | 54.7 | |
U.S. | Level 1 | Information technology corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 57.5 | 55.3 | |
U.S. | Level 1 | Other corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 116.6 | 156.7 | |
U.S. | Level 1 | U.S. government and agency securities-Other | |||
Employee Benefit Obligations | |||
Total assets | 49.1 | 35.7 | |
U.S. | Level 1 | Corporate bonds and notes-Other | |||
Employee Benefit Obligations | |||
Total assets | 0.2 | ||
U.S. | Level 1 | Commingled funds | |||
Employee Benefit Obligations | |||
Total assets | 23.2 | ||
U.S. | Level 1 | International Commingled Funds | |||
Employee Benefit Obligations | |||
Total assets | 19.5 | ||
U.S. | Level 1 | Other Commingled Funds | |||
Employee Benefit Obligations | |||
Total assets | 3.3 | ||
U.S. | Level 2 | |||
Employee Benefit Obligations | |||
Total assets | 675.6 | 731.3 | |
U.S. | Level 2 | Cash and cash equivalents | |||
Employee Benefit Obligations | |||
Total assets | 88.7 | 149.8 | |
U.S. | Level 2 | Other corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 34.4 | 30.8 | |
U.S. | Level 2 | U.S. government and agency securities-FHLMC mortgage backed securities | |||
Employee Benefit Obligations | |||
Total assets | 14.7 | 17.5 | |
U.S. | Level 2 | U.S. government and agency securities-FNMA mortgage backed securities | |||
Employee Benefit Obligations | |||
Total assets | 49.9 | 43.1 | |
U.S. | Level 2 | U.S. government and agency securities-Other | |||
Employee Benefit Obligations | |||
Total assets | 13.1 | 15.6 | |
U.S. | Level 2 | Corporate bonds and notes-Financials | |||
Employee Benefit Obligations | |||
Total assets | 96.5 | 105.2 | |
U.S. | Level 2 | Corporate bonds and notes-Utilities | |||
Employee Benefit Obligations | |||
Total assets | 33.4 | 37.4 | |
U.S. | Level 2 | Corporate bonds and notes-Private placement | |||
Employee Benefit Obligations | |||
Total assets | 44.8 | 45.4 | |
U.S. | Level 2 | Corporate bonds and notes-Other | |||
Employee Benefit Obligations | |||
Total assets | 113.5 | 108.2 | |
U.S. | Level 2 | Commingled funds | |||
Employee Benefit Obligations | |||
Total assets | 111.5 | ||
U.S. | Level 2 | International Commingled Funds | |||
Employee Benefit Obligations | |||
Total assets | 68.7 | ||
U.S. | Level 2 | Other Commingled Funds | |||
Employee Benefit Obligations | |||
Total assets | 50.3 | ||
U.S. | Level 2 | Limited partnerships and other | |||
Employee Benefit Obligations | |||
Total assets | 67.6 | 66.8 | |
U.S. | Level 3 | |||
Employee Benefit Obligations | |||
Total assets | 63 | 51.9 | 48.9 |
U.S. | Level 3 | Limited partnerships and other | |||
Employee Benefit Obligations | |||
Total assets | 63 | 51.9 | |
Canada. | Level 2 | |||
Employee Benefit Obligations | |||
Total assets | 47.1 | 49.3 | |
Canada. | Level 2 | Equity commingled funds | |||
Employee Benefit Obligations | |||
Total assets | 3.9 | 4.2 | |
Canada. | Level 2 | Fixed income commingled funds | |||
Employee Benefit Obligations | |||
Total assets | 34.5 | 35.6 | |
Canada. | Level 2 | Fixed income securities | |||
Employee Benefit Obligations | |||
Total assets | 8.7 | 9.5 | |
United Kingdom. | Level 2 | |||
Employee Benefit Obligations | |||
Total assets | 285.4 | 224.9 | |
United Kingdom. | Level 2 | Equity commingled funds | |||
Employee Benefit Obligations | |||
Total assets | 71.3 | 56.2 | |
United Kingdom. | Level 2 | Fixed income commingled funds | |||
Employee Benefit Obligations | |||
Total assets | 174.1 | 134.9 | |
United Kingdom. | Level 2 | Absolute return funds | |||
Employee Benefit Obligations | |||
Total assets | 17.2 | 18 | |
United Kingdom. | Level 2 | Alternative investments | |||
Employee Benefit Obligations | |||
Total assets | $22.80 | $15.80 |
Employee_Benefit_Obligations_D4
Employee Benefit Obligations (Details 5) (U.S., USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of the U.S. Level 3 assets: | |||
Fair value of plan assets at the beginning of the period | $952 | ||
Fair value of plan assets at the end of the period | 1,098 | 1,109.50 | 952 |
Level 3 | |||
Reconciliation of the U.S. Level 3 assets: | |||
Fair value of plan assets at the beginning of the period | 51.9 | 48.9 | |
Actual return on plan assets relating to assets still held at the reporting date | 9.5 | 2 | |
Purchases | 9.1 | 5.9 | |
Sales | -7.5 | -4.9 | |
Fair value of plan assets at the end of the period | $63 | $51.90 |
Employee_Benefit_Obligations_D5
Employee Benefit Obligations (Details 6) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred Compensation Plans | |||
Employer match of deferred compensation (as a percent) | 20.00% | ||
Employer contribution limit per calendar year | $20,000 | ||
Number of shares, value equivalent, for each stock unit | 1 | ||
Other Benefit Plans | |||
Percentage of eligible compensation, matched 100% by employer | 3.00% | ||
Percentage of eligible compensation, matched 50% by employer | 2.00% | ||
Employer match of employee contributions of first 3% of eligible compensation (as a percent) | 100.00% | ||
Employer match of employee contributions of next 2% of eligible compensation (as a percent) | 50.00% | ||
Expense associated with the company match | 23,600,000 | 23,500,000 | 21,800,000 |
Aerospace & technologies | |||
Employee Benefit Obligations | |||
Performance-based matching cash contributions by employer limit (as a percent of base salary) | 4.00% | ||
Additional compensation expense related to performance-based program recognized | 4,700,000 | 0 | 9,200,000 |
Other post retirement benefits | |||
Employee Benefit Obligations | |||
Increase in the total of service and interest cost due to one-percentage point increase in assumed health care cost trend rate | 300,000 | ||
Decrease in the total of service and interest cost due to one-percentage point decrease in assumed health care cost trend rate | -200,000 | ||
Increase in the postretirement benefit obligation due to one-percentage point increase in assumed health care cost trend rate | 4,700,000 | ||
Decrease in the postretirement benefit obligation due to one-percentage point decrease in assumed health care cost trend rate | ($4,300,000) | ||
U.S. health care plans | |||
Employee Benefit Obligations | |||
Health care cost trend rate used for pre-65 and post-65 benefits (as a percent) | 8.00% | ||
Rate to which the health care cost trend rate is assumed to decline (as a percent) | 5.00% | ||
Canadian plans | |||
Employee Benefit Obligations | |||
Health care cost trend rate used for pre-65 and post-65 benefits (as a percent) | 4.25% | ||
Rate to which the health care cost trend rate is assumed to decline (as a percent) | 5.00% |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Shareholders' Equity | |||
Number of shares of common stock authorized | 550,000,000 | ||
Number of shares of preferred stock authorized | 15,000,000 | ||
Class of Stock | |||
Number of shares of preferred stock authorized | 15,000,000 | ||
Share repurchases, net of issuances | $360.10 | $398.80 | $494.10 |
Number of preferred stock purchase rights attached to each outstanding share of common stock | 0.5 | ||
Number of series A junior participating preferred stock each right entitles the holder to purchase | one-thousandth | ||
Exercise price per right (in dollars per share) | $185 | ||
Minimum percentage of outstanding common stock to be acquired to trigger rights exchanged for common stock | 10.00% | ||
Discount on purchase price of common stock of the entity on exercise of rights on acquisition of 10 percent or more of outstanding common stock (as a percent) | 50.00% | ||
Redemption price of rights (in dollars per share) | $0.00 | ||
Series A Junior Participating Preferred Stock | |||
Class of Stock | |||
Number of shares of preferred stock unissued | 550,000 |
Shareholders_Equity_Details_2
Shareholders' Equity (Details 2) (USD $) | 0 Months Ended | 1 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Mar. 07, 2014 | Feb. 03, 2012 | Jun. 30, 2014 | 31-May-12 | Mar. 31, 2014 | Mar. 07, 2014 | Feb. 29, 2012 | Feb. 03, 2012 |
Shareholders' Equity | ||||||||
Accelerated share repurchase agreement amount | $100 | $200 | ||||||
Payment made under the agreement | $100 | $200 | ||||||
Shares received | 1,538,740 | 4,584,819 | 245,196 | 334,039 | ||||
Percentage of treasury stock acquired of total stock | 85.00% | 90.00% | ||||||
Weighted average price per share for the contract period | $56.06 | $40.66 |
Shareholders_Equity_Details_3
Shareholders' Equity (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amounts Reclassified from AOCI | |||||||||||
Net sales | $2,032.40 | $2,238.90 | $2,291.90 | $2,006.80 | $1,996.80 | $2,277.90 | $2,202.40 | $1,991 | $8,570 | $8,468.10 | $8,735.70 |
Cost of sales | -7,731.40 | -7,672.70 | -7,945.20 | ||||||||
Interest expense | -193 | -211.8 | -194.9 | ||||||||
Earnings before taxes | 98.3 | 187.9 | 215.3 | 144.1 | 191.5 | 164.8 | 129.1 | 98.2 | 645.6 | 583.6 | 595.6 |
Tax benefit (expense) on amounts reclassified into earnings | -149.9 | -149.6 | -172.2 | ||||||||
Net earnings | 498 | 435 | 419.3 | ||||||||
Ball Corporation | |||||||||||
Amounts Reclassified from AOCI | |||||||||||
Cost of sales | 630 | 571.5 | 558.2 | ||||||||
Interest expense | -183.1 | -199.9 | -181.3 | ||||||||
Earnings before taxes | 446.9 | 371.6 | 376.9 | ||||||||
Tax benefit (expense) on amounts reclassified into earnings | 23.1 | 35.2 | 19.4 | ||||||||
Net earnings | 406.8 | 396.3 | |||||||||
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | |||||||||||
Amounts Reclassified from AOCI | |||||||||||
Earnings before taxes | -33.4 | -28.5 | |||||||||
Tax benefit (expense) on amounts reclassified into earnings | 2.7 | 7.1 | |||||||||
Net earnings | -30.7 | -21.4 | |||||||||
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Commodity contracts | |||||||||||
Amounts Reclassified from AOCI | |||||||||||
Net sales | -6.2 | 8.4 | |||||||||
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Commodity contract and currency exchange contracts | |||||||||||
Amounts Reclassified from AOCI | |||||||||||
Cost of sales | -27.2 | -35.9 | |||||||||
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Interest rate swap agreements | |||||||||||
Amounts Reclassified from AOCI | |||||||||||
Interest expense | -1 | ||||||||||
Pension and Other Postretirement Benefits (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | |||||||||||
Amounts Reclassified from AOCI | |||||||||||
Prior service income (cost) | 0.6 | 1 | |||||||||
Actuarial gains (losses) | -36.8 | -49.8 | |||||||||
Effect of pension settlement | -45.3 | ||||||||||
Earnings before taxes | -81.5 | -48.8 | |||||||||
Tax benefit (expense) on amounts reclassified into earnings | 30.2 | 18.2 | |||||||||
Net earnings | ($51.30) | ($30.60) |
Shareholders_Equity_Details_4
Shareholders' Equity (Details 4) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Earnings (Loss) | ||
Balance at the beginning of the period | ($249.90) | ($362.10) |
Other comprehensive earnings (loss) before reclassifications | -354.2 | 60.2 |
Amounts reclassified from accumulated other comprehensive earnings (loss) | 82 | 52 |
Balance at the end of the period | -522.1 | -249.9 |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Earnings (Loss) | ||
Balance at the beginning of the period | 180.7 | 118.3 |
Other comprehensive earnings (loss) before reclassifications | -199.1 | 62.4 |
Balance at the end of the period | -18.4 | 180.7 |
Pension and Other Postretirement Benefits (Net of Tax) | ||
Accumulated Other Comprehensive Earnings (Loss) | ||
Balance at the beginning of the period | -391.8 | -471.5 |
Other comprehensive earnings (loss) before reclassifications | -159.4 | 49.1 |
Amounts reclassified from accumulated other comprehensive earnings (loss) | 51.3 | 30.6 |
Balance at the end of the period | -499.9 | -391.8 |
Effective Derivatives (Net of Tax) | ||
Accumulated Other Comprehensive Earnings (Loss) | ||
Balance at the beginning of the period | -38.8 | -8.9 |
Other comprehensive earnings (loss) before reclassifications | 4.3 | -51.3 |
Amounts reclassified from accumulated other comprehensive earnings (loss) | 30.7 | 21.4 |
Balance at the end of the period | -3.8 | -38.8 |
Ball Corporation | ||
Accumulated Other Comprehensive Earnings (Loss) | ||
Balance at the end of the period | ($522.10) | ($249.90) |
StockBased_Compensation_Progra2
Stock-Based Compensation Programs (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2014 | Jan. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted stock activity, Weighted average grant price | |||||
Share based compensation expense | $25,100,000 | $24,500,000 | $26,700,000 | ||
Expenses for share-based compensation arrangements, after tax | 15,600,000 | 14,900,000 | 16,200,000 | ||
Unrecognized compensation cost related to nonvested share-based compensation arrangements | 29,400,000 | ||||
Expected weighted-average period for recognition of unrecognized stock-based compensation costs | 2 years 2 months 12 days | ||||
Stock option and SSARs | |||||
Stock-Based Compensation Programs | |||||
Number of equal installments commencing one year from the date of grant | 4 | ||||
Vesting period | 1 year | ||||
Expiration period of options | 10 years | ||||
Outstanding Options, Number of Shares | |||||
Beginning of year (in shares) | 10,058,729 | 10,058,729 | |||
Granted (in shares) | 1,361,390 | ||||
Exercised (in shares) | -1,481,368 | ||||
Canceled/forfeited (in shares) | -200,721 | ||||
End of the period (in shares) | 9,738,030 | 10,058,729 | |||
Vested and exercisable, end of period (in shares) | 6,728,435 | ||||
Reserved for future grants (in shares) | 10,428,157 | ||||
Outstanding Options, Weighted Average Exercise Price | |||||
Beginning of year (in dollars per share) | 29.68 | $29.68 | |||
Granted (in dollars per share) | $49.07 | ||||
Exercised (in dollars per share) | $25.37 | ||||
Canceled/forfeited (in dollars per share) | $43.18 | ||||
End of period (in dollars per share) | $32.76 | $29.68 | |||
Vested and exercisable, end of period (in dollars per share) | $27.46 | ||||
Weighted average remaining contractual term of options outstanding | 5 years 6 months | ||||
Aggregate intrinsic value of options outstanding | 344,800,000 | ||||
Weighted average remaining contractual term of options vested and exercisable | 4 years 4 months 24 days | ||||
Aggregate intrinsic value of options vested and exercisable | 273,900,000 | ||||
Total fair value of options vested | 13,300,000 | 11,400,000 | 10,500,000 | ||
Weighted average fair value at grant date (in dollars per share) | $9.81 | $8.69 | $9.44 | ||
Weighted average assumptions used in estimation of fair values of options | |||||
Expected dividend yield (as a percent) | 1.06% | 1.13% | 1.06% | ||
Expected stock price volatility (as a percent) | 21.41% | 22.02% | 30.22% | ||
Risk-free interest rate (as a percent) | 1.65% | 1.02% | 0.84% | ||
Expected life of options | 5 years 6 months | 5 years 6 months | 5 years 3 months 4 days | ||
Stock options | |||||
Outstanding Options, Weighted Average Exercise Price | |||||
Cash received from options exercised | 22,900,000 | ||||
Intrinsic value of options exercised | 31,400,000 | ||||
Tax benefit from exercise of options | 17,500,000 | ||||
Restricted stock activity, Weighted average grant price | |||||
Maximum employer's contribution as a percentage of each participating employee's monthly payroll deduction | 20.00% | ||||
Maximum employer's contribution to each participating employee | 500 | ||||
Company contributions | 3,500,000 | 3,500,000 | 3,600,000 | ||
Restricted shares and restricted stock units | |||||
Stock-Based Compensation Programs | |||||
Vesting period | 5 years | ||||
Restricted stock activity, Number of shares | |||||
Beginning of the period (in shares) | 1,441,014 | 1,441,014 | |||
Granted (in shares) | 212,695 | ||||
Vested (in shares) | -385,291 | ||||
Canceled/forfeited (in shares) | -47,757 | ||||
End of the period (in shares) | 1,220,661 | ||||
Restricted stock activity, Weighted average grant price | |||||
Beginning of the period (in dollars per share) | 31.94 | $31.94 | |||
Granted (in dollars per share) | $51.65 | ||||
Vested (in dollars per share) | $35.92 | ||||
Canceled/forfeited (in dollars per share) | $40.55 | ||||
End of the period (in dollars per share) | $33.92 | ||||
PCEQs | |||||
Restricted stock activity, Number of shares | |||||
Granted (in shares) | 143,305 | 148,875 | |||
Restricted stock activity, Weighted average grant price | |||||
Share based compensation expense | $6,900,000 | $7,600,000 | $8,200,000 | ||
PCEQs | Minimum | |||||
Restricted stock activity, Weighted average grant price | |||||
Vest range of participant's assigned award opportunity (as a percent) | 0.00% | ||||
PCEQs | Maximum | |||||
Restricted stock activity, Weighted average grant price | |||||
Vest range of participant's assigned award opportunity (as a percent) | 200.00% |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share | |||||||||||
Net earnings attributable to Ball Corporation | $76 | $147.40 | $153.10 | $93.50 | $124.50 | $115.20 | $95.10 | $72 | $470 | $406.80 | $396.30 |
Basic weighted average common shares | 138,508,000 | 145,943,000 | 154,648,000 | ||||||||
Effect of dilutive securities (in shares) | 3,922,000 | 3,280,000 | 3,436,000 | ||||||||
Weighted average shares applicable to diluted earnings per share | 142,430,000 | 149,223,000 | 158,084,000 | ||||||||
Per basic share (in dollars per share) | $0.56 | $1.07 | $1.10 | $0.67 | $0.87 | $0.80 | $0.65 | $0.48 | $3.39 | $2.79 | $2.56 |
Per diluted share (in dollars per share) | $0.54 | $1.04 | $1.07 | $0.65 | $0.85 | $0.78 | $0.63 | $0.47 | $3.30 | $2.73 | $2.50 |
Number of outstanding options excluded from computation of diluted earnings per share | 0 | 1,300,000 | 1,400,000 |
Financial_Instruments_and_Risk2
Financial Instruments and Risk Management (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2015 |
item | item | ||
Financial Instruments and Risk Management | |||
Aggregate fair value of derivative instruments with credit-risk-related contingent features that were in a net liability position | $12.40 | $48 | |
Collateral amount posted for derivative instruments with credit-risk-related contingent features that were in a net liability position | 0 | 0 | |
Commodity contracts | |||
Financial Instruments and Risk Management | |||
Number of methods through which entity manages commodity price risk in connection with market price fluctuations of aluminum ingot | 2 | ||
Notional amount of derivatives | 389 | ||
Period within which derivative will expire | 3 years | ||
Loss on derivatives included in accumulated other comprehensive earnings (loss), net of tax | 3.2 | ||
Net loss expected to be recognized in the consolidated statement of earnings during the next 12 months | 1.1 | ||
Commodity contracts | Derivatives Designated As Hedging Instruments | Cash Flow Hedging [Member] | |||
Financial Instruments and Risk Management | |||
Notional amount of derivatives | 305 | ||
Interest rate swap agreements | |||
Financial Instruments and Risk Management | |||
Notional amount of derivatives | 158 | ||
Period within which derivative will expire | 5 years | ||
Currency Exchange Rate Risk | |||
Financial Instruments and Risk Management | |||
Notional amount of derivatives | 442 | ||
Loss on derivatives included in accumulated other comprehensive earnings (loss), net of tax | 0.4 | ||
Net loss expected to be recognized in the consolidated statement of earnings during the next 12 months | 1.3 | ||
Equity contracts | |||
Financial Instruments and Risk Management | |||
Change in company's stock price (in dollars per share) | $1 | ||
Impact of change in the company's stock price on pretax earnings | 1.3 | ||
Notional value of the swap (in shares) | 1,000,000 | ||
Combined fair value of the swaps | $0.40 |
Financial_Instruments_and_Risk3
Financial Instruments and Risk Management (Details 2) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Measurements | ||
Total current derivative contracts, assets | $9.40 | $7.10 |
Total noncurrent derivative contracts, assets | 3.1 | 0.1 |
Total current derivative contracts, liabilities | 12.3 | 29.6 |
Total noncurrent derivative contracts, liabilities | 7.6 | 20.3 |
Discount factor | 12-month LIBOR | |
Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 5.1 | 4.3 |
Total noncurrent derivative contracts, assets | 2.7 | |
Total current derivative contracts, liabilities | 8.5 | 21.2 |
Total noncurrent derivative contracts, liabilities | 7.3 | 20.3 |
Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 4.3 | 1.7 |
Total noncurrent derivative contracts, assets | 0.1 | |
Total current derivative contracts, liabilities | 2.9 | 7.6 |
Other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 1.1 | |
Interest rate contracts | ||
Fair Value Measurements | ||
Total noncurrent derivative contracts, assets | 0.4 | |
Total noncurrent derivative contracts, liabilities | 0.3 | |
Interest rate and other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, liabilities | 0.9 | 0.8 |
Derivatives Designated As Hedging Instruments | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 4.6 | 2.8 |
Total noncurrent derivative contracts, assets | 2.6 | |
Total current derivative contracts, liabilities | 9 | 21.5 |
Total noncurrent derivative contracts, liabilities | 7.1 | 20.3 |
Derivatives Designated As Hedging Instruments | Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 3.8 | 2.6 |
Total noncurrent derivative contracts, assets | 2.2 | |
Total current derivative contracts, liabilities | 6.9 | 19.2 |
Total noncurrent derivative contracts, liabilities | 6.8 | 20.3 |
Derivatives Designated As Hedging Instruments | Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 0.8 | 0.2 |
Total current derivative contracts, liabilities | 1.6 | 1.5 |
Derivatives Designated As Hedging Instruments | Interest rate contracts | ||
Fair Value Measurements | ||
Total noncurrent derivative contracts, assets | 0.4 | |
Total noncurrent derivative contracts, liabilities | 0.3 | |
Derivatives Designated As Hedging Instruments | Interest rate and other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, liabilities | 0.5 | 0.8 |
Derivatives Not Designated As Hedging Instruments | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 4.8 | 4.3 |
Total noncurrent derivative contracts, assets | 0.5 | 0.1 |
Total current derivative contracts, liabilities | 3.3 | 8.1 |
Total noncurrent derivative contracts, liabilities | 0.5 | |
Derivatives Not Designated As Hedging Instruments | Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 1.3 | 1.7 |
Total noncurrent derivative contracts, assets | 0.5 | |
Total current derivative contracts, liabilities | 1.6 | 2 |
Total noncurrent derivative contracts, liabilities | 0.5 | |
Derivatives Not Designated As Hedging Instruments | Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 3.5 | 1.5 |
Total noncurrent derivative contracts, assets | 0.1 | |
Total current derivative contracts, liabilities | 1.3 | 6.1 |
Derivatives Not Designated As Hedging Instruments | Other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 1.1 | |
Derivatives Not Designated As Hedging Instruments | Interest rate and other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, liabilities | $0.40 |
Financial_Instruments_and_Risk4
Financial Instruments and Risk Management (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Impact on Earnings from Derivative Instruments | |||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | ($33.40) | ($28.50) | ($57.80) |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | -23.2 | 5 | -14.4 |
Amounts reclassified into earnings: | |||
Commodity contracts | 33.6 | 26.9 | 56.1 |
Interest rate contracts | 1 | 0.5 | |
Currency exchange contracts | -0.2 | 0.6 | 1.2 |
Change in fair value of cash flow hedges: | |||
Commodity contracts | 4.1 | -61.6 | -5.8 |
Interest rate contracts | -0.3 | 0.3 | -1.2 |
Currency exchange contracts | 0.7 | 2.2 | -0.5 |
Foreign Currency and tax impacts | -2.9 | 0.7 | -20.8 |
Changes in accumulated other comprehensive earnings (loss) for effective derivatives | 35 | -29.9 | 29.5 |
Commodity contracts | |||
Impact on Earnings from Derivative Instruments | |||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | -33.6 | -26.9 | -56.1 |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 4.4 | -2.9 | 3.1 |
Interest rate contracts | |||
Impact on Earnings from Derivative Instruments | |||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | -1 | -0.5 | |
Foreign currency contracts | |||
Impact on Earnings from Derivative Instruments | |||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | 0.2 | -0.6 | -1.2 |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | -25 | 7.3 | -20.8 |
Equity contracts | |||
Impact on Earnings from Derivative Instruments | |||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | -2.6 | 0.5 | 3.2 |
Inflation option contracts | |||
Impact on Earnings from Derivative Instruments | |||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | $0.10 | $0.10 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Results of Operations (Unaudited) | |||||||||||
Net sales | $2,032.40 | $2,238.90 | $2,291.90 | $2,006.80 | $1,996.80 | $2,277.90 | $2,202.40 | $1,991 | $8,570 | $8,468.10 | $8,735.70 |
Gross profit | 336.9 | 372.4 | 387.9 | 336.5 | 346.1 | 365.7 | 342 | 285.1 | 1,433.70 | 1,338.90 | |
Earnings before taxes | 98.3 | 187.9 | 215.3 | 144.1 | 191.5 | 164.8 | 129.1 | 98.2 | 645.6 | 583.6 | 595.6 |
Net earnings attributable to Ball Corporation from continuing operations | 76 | 147.4 | 153.1 | 93.5 | 124.5 | 114.9 | 95.1 | 71.9 | 470 | 406.4 | 399.1 |
Net earnings attributable to Ball Corporation | 76 | 147.4 | 153.1 | 93.5 | 124.5 | 115.2 | 95.1 | 72 | 470 | 406.8 | 396.3 |
Basic earnings per share: | |||||||||||
Continuing operations (in dollars per share) | $0.56 | $1.07 | $1.10 | $0.67 | $0.87 | $0.80 | $0.65 | $0.48 | $3.39 | $2.79 | $2.58 |
Total (in dollars per share) | $0.56 | $1.07 | $1.10 | $0.67 | $0.87 | $0.80 | $0.65 | $0.48 | $3.39 | $2.79 | $2.56 |
Diluted earnings per share: | |||||||||||
Continuing operations (in dollars per share) | $0.54 | $1.04 | $1.07 | $0.65 | $0.85 | $0.78 | $0.63 | $0.47 | $3.30 | $2.73 | $2.52 |
Total (in dollars per share) | $0.54 | $1.04 | $1.07 | $0.65 | $0.85 | $0.78 | $0.63 | $0.47 | $3.30 | $2.73 | $2.50 |
Depreciation and amortization related to cost of sales | $232.80 | $253.70 |
Contingencies_Details
Contingencies (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 1992 | Dec. 31, 2014 | Nov. 30, 2012 | Sep. 30, 2014 |
entity | item | item | ||
Environmental litigation with respect to Lowry Landfill site | ||||
Contingencies | ||||
Approximate number of other companies named in a lawsuit with respect to Lowry Landfill | 38 | |||
Waste Management litigation | ||||
Contingencies | ||||
Response cost related to site, minimum before the company may be asked to make payments | $319 | |||
Period before projected completion of project when response cost is expected to exceed minimum amount | 3 years | |||
Estimated additional cleanup costs | 10 | |||
Estimated additional site costs for the potentially responsible party (PRP) group | 1 | |||
Environmental litigation with respect to Lower Duwamish site | ||||
Contingencies | ||||
Number of potentially responsible parties (PRPs) | 50 | |||
Number of additional potentially responsible parties (PRPs) | 20 | |||
Site cleanup costs | 100 | |||
Number of companies whose data is reviewed upon | 30 | |||
Number of potentially responsible parties (PRP)whose data is under review | 2 | |||
Period over which data is reviewed | 3 years | |||
Forecast | Environmental litigation with respect to Lower Duwamish site | ||||
Contingencies | ||||
Expected future remediation costs | $342 |
Subsidiary_Guarantees_of_Debt_1
Subsidiary Guarantees of Debt (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Subsidiary Guarantees of Debt | |||||||||||
Ownership interest in guarantor subsidiaries (as a percent) | 100.00% | ||||||||||
Subsidiary Guarantees of Debt | |||||||||||
Net sales | $2,032.40 | $2,238.90 | $2,291.90 | $2,006.80 | $1,996.80 | $2,277.90 | $2,202.40 | $1,991 | $8,570 | $8,468.10 | $8,735.70 |
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | -6,903.50 | -6,875.40 | -7,174 | ||||||||
Depreciation and amortization | -280.9 | -299.9 | -282.9 | ||||||||
Selling, general and administrative | -466.5 | -418.6 | -385.5 | ||||||||
Business consolidation and other activities | -80.5 | -78.8 | -102.8 | ||||||||
Total costs and expenses | -7,731.40 | -7,672.70 | -7,945.20 | ||||||||
Earnings before interest and taxes | 838.6 | 795.4 | 790.5 | ||||||||
Interest expense | -159.9 | -183.8 | -179.8 | ||||||||
Debt refinancing and other | -33.1 | -28 | -15.1 | ||||||||
Total interest expense | -193 | -211.8 | -194.9 | ||||||||
Earnings before taxes | 98.3 | 187.9 | 215.3 | 144.1 | 191.5 | 164.8 | 129.1 | 98.2 | 645.6 | 583.6 | 595.6 |
Tax provision | -149.9 | -149.6 | -172.2 | ||||||||
Equity in results of affiliates, net of tax | 2.3 | 0.6 | -1.3 | ||||||||
Net earnings from continuing operations | 498 | 434.6 | 422.1 | ||||||||
Discontinued operations, net of tax | 0.4 | -2.8 | |||||||||
Net earnings | 498 | 435 | 419.3 | ||||||||
Less net earnings attributable to noncontrolling interests | -28 | -28.2 | -23 | ||||||||
Net earnings attributable to Ball Corporation | 76 | 147.4 | 153.1 | 93.5 | 124.5 | 115.2 | 95.1 | 72 | 470 | 406.8 | 396.3 |
Comprehensive earnings attributable to Ball Corporation | 197.9 | 519 | 386.3 | ||||||||
Ball Corporation | |||||||||||
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | 0.1 | 0.1 | |||||||||
Depreciation and amortization | -6.4 | -7.5 | -5.8 | ||||||||
Selling, general and administrative | -77.4 | -81.4 | -69.4 | ||||||||
Business consolidation and other activities | -11.2 | -0.7 | -11.3 | ||||||||
Equity in results of subsidiaries | 470.2 | 426.9 | 408.6 | ||||||||
Intercompany | 254.8 | 234.1 | 236 | ||||||||
Total costs and expenses | 630 | 571.5 | 558.2 | ||||||||
Earnings before interest and taxes | 630 | 571.5 | 558.2 | ||||||||
Interest expense | -150 | -172 | -166.2 | ||||||||
Debt refinancing and other | -33.1 | -27.9 | -15.1 | ||||||||
Total interest expense | -183.1 | -199.9 | -181.3 | ||||||||
Earnings before taxes | 446.9 | 371.6 | 376.9 | ||||||||
Tax provision | 23.1 | 35.2 | 19.4 | ||||||||
Net earnings from continuing operations | 470 | 406.8 | 396.3 | ||||||||
Net earnings | 406.8 | 396.3 | |||||||||
Net earnings attributable to Ball Corporation | 470 | 406.8 | 396.3 | ||||||||
Comprehensive earnings attributable to Ball Corporation | 197.9 | 519 | 386.3 | ||||||||
Guarantor Subsidiaries | |||||||||||
Subsidiary Guarantees of Debt | |||||||||||
Net sales | 5,102.60 | 5,125.50 | 5,477.30 | ||||||||
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | -4,207.30 | -4,246.70 | -4,589.50 | ||||||||
Depreciation and amortization | -127.5 | -126.7 | -125.7 | ||||||||
Selling, general and administrative | -185.5 | -179.9 | -186.6 | ||||||||
Business consolidation and other activities | -66.6 | -88.5 | -55 | ||||||||
Equity in results of subsidiaries | 265.4 | 248.4 | 240.4 | ||||||||
Intercompany | -215.8 | -188.3 | -201.8 | ||||||||
Total costs and expenses | -4,537.30 | -4,581.70 | -4,918.20 | ||||||||
Earnings before interest and taxes | 565.3 | 543.8 | 559.1 | ||||||||
Interest expense | 3.4 | 2.5 | 1.4 | ||||||||
Total interest expense | 3.4 | 2.5 | 1.4 | ||||||||
Earnings before taxes | 568.7 | 546.3 | 560.5 | ||||||||
Tax provision | -99.4 | -113.8 | -112.6 | ||||||||
Equity in results of affiliates, net of tax | 1.2 | 0.4 | 1 | ||||||||
Net earnings from continuing operations | 470.5 | 432.9 | 448.9 | ||||||||
Discontinued operations, net of tax | 0.4 | -2.8 | |||||||||
Net earnings | 433.3 | 446.1 | |||||||||
Net earnings attributable to Ball Corporation | 470.5 | 433.3 | 446.1 | ||||||||
Comprehensive earnings attributable to Ball Corporation | 209.6 | 533.2 | 413.7 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
Subsidiary Guarantees of Debt | |||||||||||
Net sales | 3,479.30 | 3,364.20 | 3,272.50 | ||||||||
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | -2,708.10 | -2,650.40 | -2,598.70 | ||||||||
Depreciation and amortization | -147 | -165.7 | -151.4 | ||||||||
Selling, general and administrative | -203.6 | -157.3 | -129.5 | ||||||||
Business consolidation and other activities | -2.7 | 10.4 | -36.5 | ||||||||
Intercompany | -39 | -45.8 | -34.2 | ||||||||
Total costs and expenses | -3,100.40 | -3,008.80 | -2,950.30 | ||||||||
Earnings before interest and taxes | 378.9 | 355.4 | 322.2 | ||||||||
Interest expense | -13.3 | -14.3 | -15 | ||||||||
Debt refinancing and other | -0.1 | ||||||||||
Total interest expense | -13.3 | -14.4 | -15 | ||||||||
Earnings before taxes | 365.6 | 341 | 307.2 | ||||||||
Tax provision | -73.6 | -71 | -79 | ||||||||
Equity in results of affiliates, net of tax | 1.1 | 0.2 | -2.3 | ||||||||
Net earnings from continuing operations | 293.1 | 270.2 | 225.9 | ||||||||
Net earnings | 270.2 | 225.9 | |||||||||
Less net earnings attributable to noncontrolling interests | -28 | -28.2 | -23 | ||||||||
Net earnings attributable to Ball Corporation | 265.1 | 242 | 202.9 | ||||||||
Comprehensive earnings attributable to Ball Corporation | 91.6 | 261.3 | 210.8 | ||||||||
Eliminating Adjustments | |||||||||||
Subsidiary Guarantees of Debt | |||||||||||
Net sales | -11.9 | -21.6 | -14.1 | ||||||||
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | 11.9 | 21.6 | 14.1 | ||||||||
Equity in results of subsidiaries | -735.6 | -675.3 | -649 | ||||||||
Total costs and expenses | -723.7 | -653.7 | -634.9 | ||||||||
Earnings before interest and taxes | -735.6 | -675.3 | -649 | ||||||||
Earnings before taxes | -735.6 | -675.3 | -649 | ||||||||
Net earnings from continuing operations | -735.6 | -675.3 | -649 | ||||||||
Net earnings | -675.3 | -649 | |||||||||
Net earnings attributable to Ball Corporation | -735.6 | -675.3 | -649 | ||||||||
Comprehensive earnings attributable to Ball Corporation | ($301.20) | ($794.50) | ($624.50) |
Subsidiary_Guarantees_of_Debt_2
Subsidiary Guarantees of Debt (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current assets | ||||
Cash and cash equivalents | $191.40 | $416 | $174.10 | $165.80 |
Receivables, net | 957.1 | 859.4 | ||
Inventories, net | 1,016.70 | 1,028.30 | ||
Deferred taxes and other current assets | 148.3 | 167.2 | 196 | |
Total current assets | 2,313.50 | 2,470.90 | ||
Non-current assets | ||||
Property, plant and equipment, net | 2,430.70 | 2,372.30 | ||
Goodwill | 2,254.50 | 2,399.70 | 2,354.80 | |
Intangibles and other assets, net | 572.3 | 577.5 | 544.6 | |
Total assets | 7,571 | 7,820.40 | 7,520.70 | |
Current liabilities | ||||
Short-term debt and current portion of long-term debt | 175.1 | 422.6 | ||
Accounts payable | 1,340 | 998.8 | ||
Accrued employee costs | 269.9 | 241.3 | ||
Other current liabilities | 221.8 | 264.7 | ||
Total current liabilities | 2,006.80 | 1,927.40 | ||
Non-current liabilities | ||||
Long-term debt | 2,993.80 | 3,182.50 | ||
Employee benefit obligations | 1,178.30 | 1,033 | ||
Deferred taxes and other liabilities | 152.5 | 261.5 | 197.3 | |
Total liabilities | 6,331.40 | 6,404.40 | 6,206.50 | |
Common stock | 1,131.30 | 1,078.40 | ||
Retained earnings | 4,346.90 | 3,947.70 | 3,614.70 | |
Accumulated other comprehensive earnings (loss) | -522.1 | -249.9 | -362.1 | |
Treasury stock, at cost | -3,923 | -3,551.60 | ||
Total Ball Corporation shareholders' equity | 1,033.10 | 1,224.60 | ||
Noncontrolling interests | 206.5 | 191.4 | ||
Total shareholders' equity | 1,239.60 | 1,416 | 1,314.20 | 1,402.20 |
Total liabilities and shareholders' equity | 7,571 | 7,820.40 | ||
Ball Corporation | ||||
Current assets | ||||
Cash and cash equivalents | 1.5 | 218.6 | 0.2 | 24 |
Receivables, net | 43.7 | 2.9 | ||
Intercompany receivables | 94 | 178.9 | ||
Deferred taxes and other current assets | 3.1 | 4 | ||
Total current assets | 142.3 | 404.4 | ||
Non-current assets | ||||
Property, plant and equipment, net | 15.1 | 14.9 | ||
Investment in subsidiaries | 3,152.70 | 4,452.30 | ||
Intangibles and other assets, net | 232.4 | 206.9 | ||
Total assets | 3,542.50 | 5,078.50 | ||
Current liabilities | ||||
Short-term debt and current portion of long-term debt | 1.9 | 310.8 | ||
Accounts payable | 7.1 | 6.9 | ||
Intercompany payables | 99.7 | 95.1 | ||
Accrued employee costs | 22.3 | 22.5 | ||
Other current liabilities | 51.6 | 10 | ||
Total current liabilities | 182.6 | 445.3 | ||
Non-current liabilities | ||||
Long-term debt | 2,750 | 2,750 | ||
Employee benefit obligations | 329.4 | 284.4 | ||
Deferred taxes and other liabilities | -752.6 | 374.2 | ||
Total liabilities | 2,509.40 | 3,853.90 | ||
Common stock | 1,131.30 | 1,078.40 | ||
Retained earnings | 4,346.90 | 3,947.70 | ||
Accumulated other comprehensive earnings (loss) | -522.1 | -249.9 | ||
Treasury stock, at cost | -3,923 | -3,551.60 | ||
Total Ball Corporation shareholders' equity | 1,033.10 | 1,224.60 | ||
Total shareholders' equity | 1,033.10 | 1,224.60 | ||
Total liabilities and shareholders' equity | 3,542.50 | 5,078.50 | ||
Guarantor Subsidiaries | ||||
Current assets | ||||
Cash and cash equivalents | 0.4 | 0.3 | 0.3 | 0.5 |
Receivables, net | 241.3 | 133.9 | ||
Intercompany receivables | 99.9 | 99.1 | ||
Inventories, net | 575 | 601.7 | ||
Deferred taxes and other current assets | 75.1 | 109.7 | ||
Total current assets | 991.7 | 944.7 | ||
Non-current assets | ||||
Property, plant and equipment, net | 968 | 877.5 | ||
Investment in subsidiaries | 2,212.20 | 2,122 | ||
Goodwill | 931 | 935.6 | ||
Intangibles and other assets, net | 93.5 | 100.9 | ||
Total assets | 5,196.40 | 4,980.70 | ||
Current liabilities | ||||
Short-term debt and current portion of long-term debt | 7.6 | 30.1 | ||
Accounts payable | 732.5 | 525.3 | ||
Intercompany payables | 1.5 | 0.4 | ||
Accrued employee costs | 155.6 | 133.7 | ||
Other current liabilities | 38 | 138.5 | ||
Total current liabilities | 935.2 | 828 | ||
Non-current liabilities | ||||
Long-term debt | 0.2 | 0.5 | ||
Employee benefit obligations | 432.7 | 310.9 | ||
Deferred taxes and other liabilities | 601.8 | -684.1 | ||
Total liabilities | 1,969.90 | 455.3 | ||
Common stock | 2,293.50 | 847.1 | ||
Retained earnings | 1,389.40 | 3,873.80 | ||
Accumulated other comprehensive earnings (loss) | -456.4 | -195.5 | ||
Total Ball Corporation shareholders' equity | 3,226.50 | 4,525.40 | ||
Total shareholders' equity | 3,226.50 | 4,525.40 | ||
Total liabilities and shareholders' equity | 5,196.40 | 4,980.70 | ||
Non-Guarantor Subsidiaries | ||||
Current assets | ||||
Cash and cash equivalents | 189.5 | 197.1 | 173.6 | 141.3 |
Receivables, net | 672.1 | 722.6 | ||
Intercompany receivables | 4.3 | 1 | ||
Inventories, net | 441.7 | 426.6 | ||
Deferred taxes and other current assets | 70.1 | 53.5 | ||
Total current assets | 1,377.70 | 1,400.80 | ||
Non-current assets | ||||
Property, plant and equipment, net | 1,447.60 | 1,479.90 | ||
Investment in subsidiaries | 78.6 | 78.6 | ||
Goodwill | 1,323.50 | 1,464.10 | ||
Intangibles and other assets, net | 246.4 | 269.7 | ||
Total assets | 4,473.80 | 4,693.10 | ||
Current liabilities | ||||
Short-term debt and current portion of long-term debt | 165.6 | 81.7 | ||
Accounts payable | 600.4 | 466.6 | ||
Intercompany payables | 97 | 183.5 | ||
Accrued employee costs | 92 | 85.1 | ||
Other current liabilities | 132.2 | 116.2 | ||
Total current liabilities | 1,087.20 | 933.1 | ||
Non-current liabilities | ||||
Long-term debt | 243.6 | 432 | ||
Employee benefit obligations | 416.2 | 437.7 | ||
Deferred taxes and other liabilities | 303.3 | 571.4 | ||
Total liabilities | 2,050.30 | 2,374.20 | ||
Common stock | 534 | 531.1 | ||
Preferred stock | 4.8 | 4.8 | ||
Retained earnings | 1,839.90 | 1,579.80 | ||
Accumulated other comprehensive earnings (loss) | -161.7 | 11.8 | ||
Total Ball Corporation shareholders' equity | 2,217 | 2,127.50 | ||
Noncontrolling interests | 206.5 | 191.4 | ||
Total shareholders' equity | 2,423.50 | 2,318.90 | ||
Total liabilities and shareholders' equity | 4,473.80 | 4,693.10 | ||
Eliminating Adjustments | ||||
Current assets | ||||
Intercompany receivables | -198.2 | -279 | ||
Total current assets | -198.2 | -279 | ||
Non-current assets | ||||
Investment in subsidiaries | -5,443.50 | -6,652.90 | ||
Total assets | -5,641.70 | -6,931.90 | ||
Current liabilities | ||||
Intercompany payables | -198.2 | -279 | ||
Total current liabilities | -198.2 | -279 | ||
Non-current liabilities | ||||
Total liabilities | -198.2 | -279 | ||
Common stock | -2,827.50 | -1,378.20 | ||
Preferred stock | -4.8 | -4.8 | ||
Retained earnings | -3,229.30 | -5,453.60 | ||
Accumulated other comprehensive earnings (loss) | 618.1 | 183.7 | ||
Total Ball Corporation shareholders' equity | -5,443.50 | -6,652.90 | ||
Total shareholders' equity | -5,443.50 | -6,652.90 | ||
Total liabilities and shareholders' equity | ($5,641.70) | ($6,931.90) |
Subsidiary_Guarantees_of_Debt_3
Subsidiary Guarantees of Debt (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Subsidiary Guarantees of Debt | |||
Cash provided by (used in) continuing operating activities | $1,012.50 | $841.30 | $858.30 |
Cash provided by (used in) discontinued operating activities | -2.3 | -5.1 | |
Total cash provided by (used in) operating activities | 1,012.50 | 839 | 853.2 |
Cash flows from investing activities | |||
Capital expenditures | -390.8 | -378.3 | -305 |
Business acquisition, net of cash acquired | -14.2 | -71.2 | |
Other, net | -0.6 | 13.4 | 20.2 |
Cash provided by (used in) investing activities | -391.4 | -379.1 | -356 |
Cash flows from financing activities | |||
Long-term borrowings | 411.9 | 1,643.10 | 1,486.40 |
Repayments of long-term borrowings | -897.8 | -1,294.90 | -1,071.60 |
Net change in short-term borrowings | 68.2 | -57.6 | -337 |
Proceeds from issuances of common stock | 37.2 | 32.9 | 53.1 |
Acquisitions of treasury stock | -397.3 | -431.7 | -547.2 |
Common dividends | -72.7 | -75.2 | -61.8 |
Other, net | 5.2 | -20.6 | -8.8 |
Cash provided by (used in) financing activities | -845.3 | -204 | -486.9 |
Effect of exchange rate changes on cash | -0.4 | -14 | -2 |
Change in cash and cash equivalents | -224.6 | 241.9 | 8.3 |
Cash and cash equivalents - beginning of year | 416 | 174.1 | 165.8 |
Cash and cash equivalents - end of year | 191.4 | 416 | 174.1 |
Ball Corporation | |||
Subsidiary Guarantees of Debt | |||
Cash provided by (used in) continuing operating activities | 68.3 | -50.5 | 44.2 |
Cash provided by (used in) discontinued operating activities | 0.2 | -1.8 | |
Total cash provided by (used in) operating activities | -50.3 | 42.4 | |
Cash flows from investing activities | |||
Capital expenditures | -10.4 | -6.7 | -5.6 |
Other, net | -7.9 | -19.6 | 18 |
Cash provided by (used in) investing activities | -18.3 | -26.3 | 12.4 |
Cash flows from financing activities | |||
Long-term borrowings | 375 | 1,373 | 1,246 |
Repayments of long-term borrowings | -690.4 | -882.7 | -1,016.30 |
Net change in short-term borrowings | 1.9 | -25 | 5 |
Proceeds from issuances of common stock | 37.2 | 32.9 | 53.1 |
Acquisitions of treasury stock | -397.3 | -431.7 | -547.2 |
Common dividends | -72.7 | -75.2 | -61.8 |
Intercompany | 470 | 316.5 | 241 |
Other, net | 17.5 | -6 | -1.2 |
Cash provided by (used in) financing activities | -258.8 | 301.8 | -81.4 |
Effect of exchange rate changes on cash | -8.3 | -6.8 | 2.8 |
Change in cash and cash equivalents | -217.1 | 218.4 | -23.8 |
Cash and cash equivalents - beginning of year | 218.6 | 0.2 | 24 |
Cash and cash equivalents - end of year | 1.5 | 218.6 | 0.2 |
Guarantor Subsidiaries | |||
Subsidiary Guarantees of Debt | |||
Cash provided by (used in) continuing operating activities | 367.8 | 464.7 | 394.9 |
Cash provided by (used in) discontinued operating activities | -2.5 | -3.3 | |
Total cash provided by (used in) operating activities | 462.2 | 391.6 | |
Cash flows from investing activities | |||
Capital expenditures | -181.8 | -169.2 | -115.8 |
Business acquisition, net of cash acquired | -12.5 | ||
Other, net | -10.3 | -2.5 | 6 |
Cash provided by (used in) investing activities | -192.1 | -184.2 | -109.8 |
Cash flows from financing activities | |||
Long-term borrowings | 1 | ||
Repayments of long-term borrowings | -0.5 | -0.1 | |
Net change in short-term borrowings | -22.2 | 29.6 | |
Intercompany | -152.9 | -308.6 | -282.4 |
Cash provided by (used in) financing activities | -175.6 | -278 | -282.5 |
Effect of exchange rate changes on cash | 0.5 | ||
Change in cash and cash equivalents | 0.1 | -0.2 | |
Cash and cash equivalents - beginning of year | 0.3 | 0.3 | 0.5 |
Cash and cash equivalents - end of year | 0.4 | 0.3 | 0.3 |
Non-Guarantor Subsidiaries | |||
Subsidiary Guarantees of Debt | |||
Cash provided by (used in) continuing operating activities | 576.4 | 427.1 | 419.2 |
Total cash provided by (used in) operating activities | 427.1 | 419.2 | |
Cash flows from investing activities | |||
Capital expenditures | -198.6 | -202.4 | -183.6 |
Business acquisition, net of cash acquired | -1.7 | -71.2 | |
Other, net | 17.6 | 35.5 | -3.8 |
Cash provided by (used in) investing activities | -181 | -168.6 | -258.6 |
Cash flows from financing activities | |||
Long-term borrowings | 36.9 | 269.1 | 240.4 |
Repayments of long-term borrowings | -206.9 | -412.2 | -55.2 |
Net change in short-term borrowings | 88.5 | -62.2 | -342 |
Intercompany | -317.1 | -7.9 | 41.4 |
Other, net | -12.3 | -14.6 | -7.6 |
Cash provided by (used in) financing activities | -410.9 | -227.8 | -123 |
Effect of exchange rate changes on cash | 7.9 | -7.2 | -5.3 |
Change in cash and cash equivalents | -7.6 | 23.5 | 32.3 |
Cash and cash equivalents - beginning of year | 197.1 | 173.6 | 141.3 |
Cash and cash equivalents - end of year | $189.50 | $197.10 | $173.60 |
Subsequent_Event_Details
Subsequent Event (Details) | 3 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||
Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 19, 2015 | Feb. 19, 2015 | Feb. 19, 2015 | Feb. 19, 2015 | Feb. 19, 2015 | Feb. 19, 2015 | Feb. 19, 2015 | Feb. 19, 2015 | Feb. 19, 2015 | Feb. 19, 2015 | Feb. 19, 2015 | Feb. 19, 2015 | |
USD ($) | USD ($) | USD ($) | 6.75% Senior Notes, due September 2020 | 6.75% Senior Notes, due September 2020 | 5.75% Senior Notes, due May 2021 | 5.75% Senior Notes, due May 2021 | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Rexam PLC | |
USD ($) | Rexam PLC | Rexam PLC | Rexam PLC | Unsecured Bridge Loan | Revolving Credit Facility | Bank Credit Facility | 6.75% Senior Notes, due September 2020 | 6.75% Senior Notes, due September 2020 | 5.75% Senior Notes, due May 2021 | 5.75% Senior Notes, due May 2021 | Subsequent Event | ||||||||
Forecast | Forecast | Forecast | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | |||||||||||
USD ($) | GBP (£) | GBP (£) | |||||||||||||||||
Subsequent Event | |||||||||||||||||||
Cash paid per share of acquire stock | £ 4.07 | ||||||||||||||||||
Number of shares issued per share of acquire stock | 0.04568 | ||||||||||||||||||
Share price | £ 6.1 | ||||||||||||||||||
Weighted average price period | 90 days | 90 days | |||||||||||||||||
Exchange rate of US dollar to pound | 1.54 | ||||||||||||||||||
Equity value | 6,600,000,000 | 4,300,000,000 | |||||||||||||||||
Face amount of debt | 3,000,000,000 | 3,500,000,000 | 3,300,000,000 | ||||||||||||||||
Maximum borrowing capacity of revolving credit facility | 3,000,000,000 | ||||||||||||||||||
Interest rate (as a percent) | 6.75% | 6.75% | 5.75% | 5.75% | 6.75% | 5.75% | |||||||||||||
Notes redeemed | 1,100,000,000 | 500,000,000 | 500,000,000 | ||||||||||||||||
Losses on redemption of debt | 26,500,000 | 56,300,000 | |||||||||||||||||
Loss on redemption of debt, net of tax | $36,900,000 |