Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 26, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | BALL CORP | |
Entity Central Index Key | 9,389 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 136,321,229 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements of Earnings | ||||
Net sales | $ 2,097 | $ 2,238.9 | $ 6,192.4 | $ 6,537.6 |
Costs and expenses | ||||
Cost of sales (excluding depreciation and amortization) | (1,690.3) | (1,807.3) | (5,026.3) | (5,266.6) |
Depreciation and amortization | (71.9) | (71.3) | (211.5) | (209.7) |
Selling, general and administrative | (106.8) | (123.1) | (340.5) | (342.2) |
Business consolidation and other activities | (151.9) | (9.2) | (138.3) | (17.8) |
Total costs and expenses | (2,020.9) | (2,010.9) | (5,716.6) | (5,836.3) |
Earnings before interest and taxes | 76.1 | 228 | 475.8 | 701.3 |
Interest expense | (37.5) | (40.1) | (107) | (120.9) |
Debt refinancing and other costs | (21) | (85.9) | (33.1) | |
Total interest expense | (58.5) | (40.1) | (192.9) | (154) |
Earnings before taxes | 17.6 | 187.9 | 282.9 | 547.3 |
Tax (provision) benefit | 31 | (39.8) | (47.9) | (139.6) |
Equity in results of affiliates, net of tax | 1.5 | 0.3 | 3.4 | 1.9 |
Net earnings | 50.1 | 148.4 | 238.4 | 409.6 |
Less net earnings attributable to noncontrolling interests | (5.6) | (1) | (12.8) | (15.6) |
Net earnings attributable to Ball Corporation | $ 44.5 | $ 147.4 | $ 225.6 | $ 394 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.32 | $ 1.07 | $ 1.64 | $ 2.83 |
Diluted (in dollars per share) | $ 0.32 | $ 1.04 | $ 1.60 | $ 2.76 |
Weighted average shares outstanding (000s): | ||||
Basic (in shares) | 137,337 | 138,010 | 137,409 | 139,133 |
Diluted (in shares) | 140,858 | 142,090 | 141,141 | 142,986 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements of Comprehensive Earnings | ||||
Net earnings | $ 50.1 | $ 148.4 | $ 238.4 | $ 409.6 |
Other comprehensive earnings (loss): | ||||
Foreign currency translation adjustment | (20.9) | (106.1) | (113.5) | (136.7) |
Pension and other postretirement benefits | 10.5 | 15.4 | 41.6 | 32.5 |
Effective financial derivatives | (0.9) | 24.3 | (16.6) | 44.5 |
Total other comprehensive earnings (loss) | (11.3) | (66.4) | (88.5) | (59.7) |
Income tax (provision) benefit | (5) | (6.4) | (10) | (16.3) |
Total other comprehensive earnings (loss), net of tax | (16.3) | (72.8) | (98.5) | (76) |
Total comprehensive earnings (loss) | 33.8 | 75.6 | 139.9 | 333.6 |
Less comprehensive (earnings) loss attributable to noncontrolling interests | (5.7) | (0.6) | (12.3) | (15.2) |
Comprehensive earnings (loss) attributable to Ball Corporation | $ 28.1 | $ 75 | $ 127.6 | $ 318.4 |
UNAUDITED CONDENSED CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 244.4 | $ 191.4 |
Receivables, net | 1,097.8 | 957.1 |
Inventories, net | 876 | 1,016.7 |
Deferred taxes and other current assets | 164.4 | 148.3 |
Total current assets | 2,382.6 | 2,313.5 |
Noncurrent assets | ||
Property, plant and equipment, net | 2,547.3 | 2,430.7 |
Goodwill | 2,204.1 | 2,254.5 |
Intangibles and other assets, net | 593 | 572.3 |
Total assets | 7,727 | 7,571 |
Current liabilities | ||
Short-term debt and current portion of long-term debt | 282.9 | 175.1 |
Accounts payable | 1,451.4 | 1,340 |
Accrued employee costs | 213.3 | 269.9 |
Other current liabilities | 332 | 221.8 |
Total current liabilities | 2,279.6 | 2,006.8 |
Noncurrent liabilities | ||
Long-term debt | 2,879.4 | 2,993.8 |
Employee benefit obligations | 1,159.5 | 1,178.3 |
Deferred taxes and other liabilities | 165.1 | 152.5 |
Total liabilities | 6,483.6 | 6,331.4 |
Shareholders' equity | ||
Common stock (332,437,320 shares issued - 2015; 331,618,306 shares issued - 2014) | 1,171.3 | 1,131.3 |
Retained earnings | 4,519.6 | 4,346.9 |
Accumulated other comprehensive earnings (loss) | (620.1) | (522.1) |
Treasury stock, at cost (196,180,099 shares - 2015; 194,652,028 shares - 2014) | (4,037.1) | (3,923) |
Total Ball Corporation shareholders' equity | 1,033.7 | 1,033.1 |
Noncontrolling interests | 209.7 | 206.5 |
Total shareholders' equity | 1,243.4 | 1,239.6 |
Total liabilities and shareholders' equity | $ 7,727 | $ 7,571 |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Sep. 30, 2015 | Dec. 31, 2014 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, shares issued | 332,437,320 | 331,618,306 |
Treasury stock, shares | 196,180,099 | 194,652,028 |
UNAUDITED CONDENSED CONSOLIDAT6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net earnings | $ 238.4 | $ 409.6 |
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 211.5 | 209.7 |
Business consolidation and other activities | 138.3 | 17.8 |
Deferred tax provision (benefit) | (68.3) | 8.3 |
Other, net | 91.6 | (18.8) |
Changes in working capital components | (14.5) | 23.4 |
Cash provided by (used in) operating activities | 597 | 650 |
Cash Flows from Investing Activities | ||
Capital expenditures | (356.8) | (250) |
Business acquisitions | (29.1) | |
Other, net | 18.3 | 11.1 |
Cash provided by (used in) investing activities | (367.6) | (238.9) |
Cash Flows from Financing Activities | ||
Long-term borrowings | 2,315 | 396.9 |
Repayments of long-term borrowings | (2,408.4) | (874.3) |
Net change in short-term borrowings | 111 | 199 |
Proceeds from issuances of common stock | 26.3 | 27.7 |
Acquisitions of treasury stock | (135.5) | (335.5) |
Common dividends | (54) | (54.8) |
Other, net | (40.2) | 7.7 |
Cash provided by (used in) financing activities | (185.8) | (633.3) |
Effect of exchange rate changes on cash | 9.4 | (4.3) |
Change in cash and cash equivalents | 53 | (226.5) |
Cash and cash equivalents - beginning of period | 191.4 | 416 |
Cash and cash equivalents - end of period | $ 244.4 | $ 189.5 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Ball Corporation and its controlled affiliates, including its consolidated variable interest entities (collectively Ball, the company, we or our), and have been prepared by the company. Certain information and footnote disclosures, including critical and significant accounting policies normally included in financial statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted for this quarterly presentation. Results of operations for the periods shown are not necessarily indicative of results for the year, particularly in view of the seasonality in the packaging segments and the irregularity of contract revenues in the aerospace and technologies segment. These unaudited condensed consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and the notes thereto included in the company’s Annual Report on Form 10-K filed on February 20, 2015, pursuant to Section 13 of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2014 (annual report). The preparation of 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 state the results of the periods presented. Certain prior period amounts have been reclassified in order to conform to the current period presentation. |
Accounting Pronouncements
Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Pronouncements | |
Accounting Pronouncements | 2. Accounting Pronouncements Recently Adopted Accounting Standards 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 was effective for Ball on January 1, 2015, and did not have a material effect on the company’s unaudited condensed consolidated financial statements. New Accounting Guidance In September 2015, amendments to existing accounting guidance were issued to simplify the accounting for adjustments made to provisional amounts recognized in a business combination. Under the previous guidance, companies were required to revise comparative information for changes made to provisional amounts. The amended guidance eliminates the requirement to retrospectively account for those adjustments. The guidance will be effective for Ball on January 1, 2016, and early adoption is permitted for financial statements that have not been issued. The guidance is not expected to have a material effect on the company’s consolidated financial statements. In July 2015, amendments to existing accounting guidance were issued to modify the subsequent measurement of inventory. Under existing guidance, a company measures inventory at the lower of cost or market, with market defined as replacement cost, net realizable value (NRV), or NRV less a normal profit margin. Current replacement cost can be used provided that it is not above the NRV (ceiling) or below NRV less a normal profit margin (floor). Amendments in the new guidance requires a company to subsequently measure inventory at the lower of cost or net realizable value and eliminates the need to determine replacement cost and evaluate whether it is above the ceiling or below the floor. NRV is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The guidance will be effective for Ball on January 1, 2017, and early adoption is permitted. The guidance is not expected to have a material effect on the company’s consolidated financial statements. In April 2015, amendments to existing accounting guidance were issued to provide explicit guidance related to a customer’s accounting for fees paid in a cloud computing arrangement. Under the guidance, cloud computing arrangements that include a software license would be accounted for consistent with the acquisition of other software licenses. Conversely, cloud computing arrangements that do not include a software license would be accounted for as a service contract. The guidance will be effective for Ball on January 1, 2016, and early adoption is permitted. The guidance is not expected to have a material effect on the company’s consolidated financial statements. In April 2015, accounting guidance was issued to change the balance sheet presentation for debt issuance costs. Under the new guidance, debt issuance costs related to a recognized debt liability will be presented as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, rather than as a deferred charge. The guidance does not affect the recognition and measurement of debt issuance costs; hence, amortization of debt issuance costs would continue to be reported as interest expense. In August 2015, subsequent clarification guidance was issued permitting companies to defer and present debt issuance costs related to line-of-credit arrangements as an asset and amortize them over the terms of these arrangements, regardless of whether there are any amounts outstanding under those arrangements. The guidance will be effective for Ball retrospectively on January 1, 2016, and is not expected to have a material effect on the company’s consolidated financial statements. In February 2015, amendments to existing accounting guidance were issued that modify the analysis companies must perform in order to determine whether a legal entity should be consolidated. The new guidance includes modifications related to: 1) limited partnerships and similar legal entities, 2) evaluating fees paid to a decision maker or service provider as a variable interest, 3) the effect of fee arrangements on the primary beneficiary, 4) the effect of related parties on the primary beneficiary and 5) certain investment funds. The guidance will be effective for Ball on January 1, 2016, and early adoption is permitted. The guidance is not expected to have a material effect on the company’s consolidated financial statements. 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. In July 2015, the FASB approved the deferral of the effective date of the new revenue recognition guidance by one year. The guidance will be effective for Ball on January 1, 2018, and early adoption is permitted. However, entities are not permitted to adopt the standard earlier than the original effective date of January 1, 2017. 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. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
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 unaudited condensed consolidated financial statements. A discussion of the company’s critical and significant accounting policies can be found in Ball’s annual report. 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. Summary of Business by Segment Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2015 2014 2015 2014 Net sales Metal beverage packaging, Americas & Asia $ $ $ $ Metal beverage packaging, Europe Metal food & household products packaging Aerospace & technologies Corporate and intercompany eliminations ) ) ) ) Net sales $ $ $ $ Net earnings Metal beverage packaging, Americas & Asia $ $ $ $ Business consolidation and other activities ) ) ) Total metal beverage packaging, Americas & Asia Metal beverage packaging, Europe Business consolidation and other activities ) ) ) ) Total metal beverage packaging, Europe Metal food & household products packaging Business consolidation and other activities ) ) ) ) Total metal food & household products packaging Aerospace & technologies Business consolidation and other activities — — — Total aerospace & technologies Segment earnings before interest and taxes Undistributed corporate expenses and intercompany eliminations, net ) ) ) ) Business consolidation and other activities ) ) ) ) Total undistributed corporate expenses and intercompany eliminations, net ) ) ) ) Earnings before interest and taxes Interest expense ) ) ) ) Debt refinancing and other costs ) — ) ) Total interest expense ) ) ) ) Tax (provision) benefit ) ) ) Equity in results of affiliates, net of tax Net earnings Less net earnings attributable to noncontrolling interests ) ) ) ) Net earnings attibutable to Ball Corporation $ $ $ $ September 30, December 31, ($ in millions) 2015 2014 Total Assets Metal beverage packaging, Americas & Asia $ $ Metal beverage packaging, Europe Metal food & household products packaging Aerospace & technologies Segment assets Corporate assets, net of eliminations ) ) Total assets $ $ |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Acquisitions | |
Acquisitions | 4. Acquisitions Rexam PLC (Rexam) 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 shares of the company. The transaction values Rexam at 610 pence per share based on the company’s 90-day volume weighted average stock 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). The actual value of the transaction will be determined based on the exchange rate and the company’s stock price at the time of the closing of the transaction. As described below, the company has entered into collar and option contracts to partially mitigate its currency exchange risk with regard to the cash component of the purchase price. By way of compensation for any loss suffered by Rexam in connection with the preparation and negotiation of the offer, the Co-operation Agreement and any other document relating to the acquisition, Ball has undertaken in the Co-operation Agreement that, on the occurrence of a break payment event Ball will pay, or procure the payment to Rexam of an amount in cash in British pounds. As discussed below, Ball’s shareholders approved the issuance of Ball common stock to shareholders of Rexam as partial consideration for the proposed acquisition. As a result, the amount of the break payment would be £302 million. A special meeting of Ball’s shareholders was held on July 28, 2015, to approve the issuance of Ball common stock to shareholders of Rexam as partial consideration for the proposed acquisition. Approximately 83 percent of the shares outstanding as of the record date on June 22, 2015, voted, and 99.2 percent of the shares that were voted approved the issuance of Ball’s common stock in connection with the proposed acquisition. Both Ball and Rexam’s boards of directors unanimously support the transaction, and the consummation of the transaction remains subject to approval from Rexam’s shareholders, certain regulatory approvals and other customary closing conditions. Subject to the satisfaction of all such conditions, Ball currently expects to complete the acquisition during the first half of 2016. The transaction is currently undergoing a regulatory review process by the Federal Trade Commission (FTC), the European Commission (EC) and Brazil’s Council for Economic Defence (CADE). The company and Rexam continue to work with the FTC, EC and CADE to obtain the regulatory clearances required to close the transaction. A wholly-owned subsidiary of Ball owns interests in a joint venture company (Latapack-Ball) organized and operating in Brazil. On October 27, 2015, Ball and its joint venture partners announced that they have reached an agreement, pursuant to which Ball’s joint venture partners agreed to exchange all of their interests in Latapack-Ball for a total of 6 million treasury shares of Ball common stock. The actual value of the transaction will be determined based on the company’s stock price at the time of the close of the transaction. This transaction is subject to certain regulatory approvals and other conditions. Long-Term Debt In February 2015, the company entered into a $3 billion revolving credit facility to replace its existing $1 billion revolving credit facility, repay its $92.9 million Term C loan, repay the outstanding balance on the existing revolving credit facility, redeem the 2020 and 2021 senior notes and repay the existing private placement debt of Rexam upon closing of the announced, proposed acquisition of Rexam. Also in February 2015, the company entered into a £3.3 billion unsecured, committed bridge loan agreement, pursuant to which lending institutions have agreed, subject to limited conditions, to provide the financing necessary to pay the cash portion of the consideration payable to Rexam’s shareholders upon consummation of the announced, proposed acquisition of Rexam along with related fees and expenses. As a result of the issuance of $1 billion of 5.25 percent senior notes in June 2015, the company reduced the borrowing capacity under the revolving credit facility from $3 billion to $2.25 billion. See Note 11 for further details related to these transactions. Currency Exchange Rate and Interest Rate Risks During the first nine months of 2015, the company entered into collar and option contracts to partially mitigate its currency exchange rate risk associated with the British pound denominated cash portion of the purchase price from February 19, 2015, through the expected closing date of the announced, proposed acquisition of Rexam, with an aggregate notional amount of approximately £2.3 billion ($3.4 billion). These contracts were not designated as hedges, and therefore, changes in the fair value of these contracts are recorded in the unaudited condensed consolidated statements of earnings in business consolidation and other activities. Also during the first nine months of 2015, the company entered into interest rate swaps to hedge against rising U.S. and European interest rates to minimize its interest rate exposure associated with anticipated debt issuances in connection with the announced, proposed acquisition of Rexam. At September 30, 2015, the company had U.S. and European outstanding interest rate swaps with notional amounts totaling approximately $250 million and €1,750 million, respectively. In addition, the company entered into interest rate option contracts to hedge negative Euribor rates with an aggregate notional amount of €750 million. Subsequent to the third quarter of 2015, the company entered into additional interest rate swap contracts to hedge against rising U.S. interest rates with aggregate notional amounts of approximately $100 million. These contracts were not designated as hedges; therefore, changes in the fair value of these interest swap and option contracts are recorded in the unaudited condensed consolidated statements of earnings in debt refinancing and other costs, a component of total interest expense. For further details related to the aforementioned currency exchange rate and interest rate risks, and the valuation of these derivatives, see Notes 5 and 16. Sonoco Products Company (Sonoco) In February 2015, the company acquired Sonoco’s metal end and closure manufacturing facilities in Canton, Ohio, and entered into a long-term supply agreement with Sonoco in exchange for total cash of $29.1 million paid at closing, $10.5 million of contingent cash consideration and $24.4 million of contingent noncash consideration. The facilities manufacture multiple-sized closures for the metal food container market, including high quality steel and aluminum easy-open ends. The financial results of Sonoco have been included in our metal food and household products packaging segment from the date of acquisition. The acquisition is not material to the company. |
Business Consolidation and Othe
Business Consolidation and Other Activities | 9 Months Ended |
Sep. 30, 2015 | |
Business Consolidation and Other Activities | |
Business Consolidation and Other Activities | 5. Business Consolidation and Other Activities Following is a summary of business consolidation and other activity (charges)/income included in the unaudited condensed consolidated statements of earnings: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2015 2014 2015 2014 Metal beverage packaging, Americas & Asia $ ) $ ) $ ) $ Metal beverage packaging, Europe ) ) ) ) Metal food & household products packaging ) ) ) ) Aerospace & technologies — — — Corporate and other ) ) ) ) $ ) $ ) $ ) $ ) 2015 Metal Beverage Packaging, Americas and Asia During the third quarter of 2015, the company announced the closure of the Bristol, Virginia, metal beverage packaging end-making facility, which is expected to cease production in the second quarter of 2016. The closure will realign end-making capacities in North America to better position the company to meet customer demand. The company recorded initial charges of $20.2 million in the third quarter, which are comprised of $19.0 million in severance, pension and other employee benefits and other individually insignificant items totaling $1.2 million. During the first nine months of 2015, the company recorded charges of $3.3 million related to business reorganization activities in the company’s metal beverage packaging, Asia, operations and for ongoing costs related to previously closed facilities. During the third quarter and the first nine months of 2015, the company also recognized charges of $1.0 million and $0.3 million, respectively, for individually insignificant items. Metal Beverage Packaging, Europe During the first nine months of 2015, the company recorded a charge of $4.7 million for the write down of property held for sale to fair value less cost to sell. During the third quarter and first nine months of 2015, the company recorded charges of $1.3 million and $3.9 million, respectively, related to headcount reductions, cost-out initiatives and the relocation of the company’s European headquarters from Germany to Switzerland, as well as an additional tax expense of $1.7 million and $5.0 million, respectively, related to this relocation. Corporate During the third quarter and first nine months of 2015, the company recorded charges of $24.7 million and $68.8 million respectively, for professional services and other costs associated with the proposed acquisition of Rexam announced in February 2015. Also during the third quarter and first nine months of 2015, the company recognized losses of $104.6 million and $36.3 million, respectively, associated with the change in fair value of its collar and option contracts entered into to reduce its exposure to currency exchange rate changes in connection with the British pound denominated cash portion of the announced, proposed acquisition of Rexam, further discussed in Note 16. Other charges in the first nine months of 2015 included $0.5 million for insignificant activities. 2014 Metal Beverage Packaging, Americas and Asia The first nine months included charges of $2.0 million related to a fire at a metal beverage packaging, Americas, facility. During the first quarter, 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. Also during the first quarter, the company sold its plastic motor oil container and pail manufacturing business in the PRC and recorded a gain of $0.8 million in connection with the sale. During the third quarter, the company entered into a supplemental agreement related to the sale and recorded a loss of $1.1 million. The third quarter and first nine months of 2014 also included net gains of $1.0 million and net charges of $1.0 million, respectively, primarily related to previously closed facilities and for other insignificant activities. Metal Food and Household Products Packaging In the third quarter, the company recorded charges of $3.6 million related to a reduction in force to eliminate certain food can production in the Oakdale, California, facility, as well as the completion of a voluntary separation program. The third quarter and first nine months also included charges of $0.9 million and $4.2 million, respectively, related to previously closed facilities and other insignificant activities. During the fourth quarter of 2013, the company announced plans to close its Danville, Illinois, steel aerosol packaging facility in the second half of 2014. Charges of $3.8 million were recorded during the first nine months of 2014 in connection with the announced closure. Metal Beverage Packaging, Europe, and Corporate The third quarter and first nine months included charges of $0.9 million and $3.2 million, respectively, for headcount reductions, cost-out initiatives and the relocation of the company’s European headquarters from Germany to Switzerland, as well as additional tax expense of $1.9 million and $6.1 million, respectively, related to this relocation. The third quarter and first nine months of 2014 also included charges of $3.7 million and $4.7 million, respectively, related to the write off of previously capitalized costs associated with the company’s Lublin, Poland, facility, and for other insignificant activities. Assets Held for Sale The carrying value of assets held for sale in connection with facility closures was $3.3 million at September 30, 2015, and $11.7 million at December 31, 2014. |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2015 | |
Receivables | |
Receivables | 6. Receivables September 30, December 31, ($ in millions) 2015 2014 Trade accounts receivable $ $ Less allowance for doubtful accounts ) ) Net trade accounts receivable Other receivables $ $ The company has entered into several regional committed and uncommitted accounts receivable factoring programs with multiple 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 $605 million at September 30, 2015. A total of $489.6 million and $197.6 million were sold under these programs as of September 30, 2015, and December 31, 2014, respectively. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventories | |
Inventories | 7. Inventories September 30, December 31, ($ in millions) 2015 2014 Raw materials and supplies $ $ Work-in-process and finished goods Less inventory reserves ) ) $ $ |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | 8. Property, Plant and Equipment September 30, December 31, ($ in millions) 2015 2014 Land $ $ Buildings Machinery and equipment Construction-in-progress Less accumulated depreciation ) ) $ $ Property, plant and equipment are stated at historical or acquired cost. Depreciation expense amounted to $62.3 million and $183.3 million for the three and nine months ended September 30, 2015, respectively, and $60.9 million and $179.1 million for the comparable periods in 2014, respectively. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill | |
Goodwill | 9. Goodwill ($ in millions) Metal Beverage Packaging, Americas & Asia Metal Beverage Packaging, Europe Metal Food & Household Products Packaging Aerospace & Technologies Total Balance at December 31, 2014 $ $ $ $ $ Business acquisition — — — Effects of currency exchange rates — ) ) — ) Balance at September 30, 2015 $ $ $ $ $ The company’s annual goodwill impairment test completed in the fourth quarter of 2014 indicated the estimated fair value of the metal beverage packaging, Asia, reporting unit exceeded its carrying amount, including goodwill, by approximately 20 percent and no triggering events have occurred during the nine months ended September 30, 2015, that would require an interim impairment test of the goodwill associated with this reporting unit. We continue to see the supply of metal beverage packaging exceed demand in China, resulting in pricing pressure and negative impacts on the profitability of our metal beverage packaging, Asia, reporting unit. If it becomes an expectation that this situation will continue for an extended period of time, it may result in a noncash impairment of some or all of the goodwill associated with this reporting unit, totaling $78.3 million at September 30, 2015. |
Intangibles and Other Assets
Intangibles and Other Assets | 9 Months Ended |
Sep. 30, 2015 | |
Intangibles and Other Assets | |
Intangibles and Other Assets | 10. Intangibles and Other Assets September 30, December 31, ($ in millions) 2015 2014 Investments in affiliates $ $ Intangible assets (net of accumulated amortization of $129.9 million at September 30, 2015 and $115.2 million at December 31, 2014) Capitalized software (net of accumulated amortization of $112.4 million at September 30, 2015, and $103.8 million at December 31, 2014) Company and trust-owned life insurance Long-term derivative assets Deferred financing costs Long-term deferred tax assets Other $ $ Total amortization expense of intangible assets amounted to $9.6 million and $28.2 million for the three and nine months ended September 30, 2015, respectively, and $10.4 million and $30.6 million for the comparable periods in 2014, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt | |
Debt | 11. Debt Long-term debt consisted of the following: September 30, December 31, ($ in millions) 2015 2014 Notes Payable 6.75% Senior Notes, due September 2020 $ — $ 5.75% Senior Notes, due May 2021 — 5.00% Senior Notes, due March 2022 4.00% Senior Notes, due November 2023 5.25% Senior Notes, due June 2025 — Multi-currency revolver, due February 2018 (at variable rates) — — Bridge Facility — — Senior Credit Facilities, due June 2018 (at variable rates) Term C loan, euro denominated — Latapack-Ball Notes Payable (at various rates and terms), denominated in various currencies Other (including discounts), denominated in various currencies ) Less current portion of long-term debt ) ) $ $ In June 2015, Ball issued $1 billion of 5.25 percent senior notes due in June 2025. Ball used the net proceeds of the offering and other available cash to repay borrowings under its revolving credit facility and reduced the borrowing capacity under the revolving credit facility from $3 billion to $2.25 billion. In connection with this partial extinguishment, the company recorded a charge of $5.0 million, which is included in debt refinancing and other costs, a component of total interest expense, in the unaudited condensed consolidated statements of earnings. In February 2015, Ball entered into a new $3 billion revolving credit facility to replace the existing approximate $1 billion revolving credit facility, repay its $92.9 million Term C loan, repay the outstanding balance on the existing revolving credit facility, redeem the 2020 and 2021 senior notes and repay the existing private placement debt of Rexam upon closing of the announced, proposed acquisition of Rexam. In March 2015, Ball redeemed its outstanding 6.75 percent senior notes and 5.75 percent senior notes due in September 2020 and May 2021, respectively, at a price per note of 103.375 percent and 106.096 percent, respectively, of the outstanding principal amounts plus accrued interest. The new revolving credit facility expires in February 2018 and accrues interest at LIBOR plus an applicable margin based on the net leverage ratio of the company, which varies from 1.25 percent to 1.75 percent. During the first quarter of 2015, the company recorded charges of $55.8 million for the call premiums and write-offs of unamortized deferred financing costs associated with the redemption of the 2020 and 2021 senior notes. The company also recorded charges of $1.7 million for the write-off of unamortized deferred financing costs associated with the refinancing of the revolving credit facility and repayment of the Term C loan. These charges are included in debt refinancing and other costs, a component of total interest expense, in the unaudited condensed consolidated statements of earnings. Additionally, in February 2015, the company entered into a £3.3 billion unsecured, committed bridge loan agreement, pursuant to which lending institutions have agreed, subject to limited conditions, to provide the financing necessary to pay the cash portion of the consideration payable to Rexam’s shareholders upon consummation of the announced, proposed acquisition of Rexam along with related fees and expenses. Under this bridge loan agreement, the company is required to pay fees while the facility is outstanding, which vary depending on the amount borrowed and the duration that the facility is outstanding. These charges are included in debt refinancing and other costs, a component of total interest expense, in the unaudited condensed consolidated statements of earnings. Fees paid to lenders in connection with obtaining financing, which totaled $27.8 million during the nine months ended September 30, 2015, are classified as other, net in cash flows from financing activities in the unaudited condensed consolidated statements of cash flows. At September 30, 2015, taking into account outstanding letters of credit and excluding availability under the accounts receivable securitization program, approximately $2.2 billion was available under the company’s long-term, revolving credit facility, which is available until February 2018. In addition to this facility, the company had approximately $760 million of short-term uncommitted credit facilities available at September 30, 2015, of which $88.5 million was outstanding and due on demand. Of the amounts available under the credit facilities described above, approximately $1.4 billion has been committed in the proposed acquisition of Rexam to repay certain of Rexam’s debt obligations and to settle Rexam’s outstanding derivatives. At December 31, 2014, the company had $10.1 million outstanding under short-term uncommitted credit facilities. 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 program, totaling $140 million and $110 million at September 30, 2015, and December 31, 2014, respectively. This program, which has been amended and extended from time to time, is scheduled to mature in May 2017 and allows the company to borrow against a maximum amount of accounts receivable that varies between $90 million and $140 million depending on the seasonal accounts receivable balances in the company’s North American packaging businesses. The fair value of the long-term debt at September 30, 2015, and at December 31, 2014, approximated its carrying value. 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. 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. Notes 18 and 19 contain further details, as well as required unaudited 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, bridge loan 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) of no greater than 4.00, prior to considering the impacts of the announced, proposed acquisition of Rexam. The company was in compliance with all loan agreements and debt covenants at September 30, 2015, and December 31, 2014, and has met all debt payment obligations. The Latapack-Ball debt facilities contain various covenants and restrictions but are nonrecourse to Ball Corporation and its wholly owned subsidiaries. |
Employee Benefit Obligations
Employee Benefit Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Employee Benefit Obligations | |
Employee Benefit Obligations | 12. Employee Benefit Obligations September 30, December 31, ($ in millions) 2015 2014 Underfunded defined benefit pension liabilities, net $ $ Less current portion and prepaid pension assets ) ) Long-term defined benefit pension liabilities Retiree medical and other postemployment benefits Deferred compensation plans Other $ $ Components of net periodic benefit cost associated with the company’s defined benefit pension plans were: Three Months Ended September 30, 2015 2014 ($ in millions) U.S. Foreign Total U.S. Foreign Total Ball-sponsored plans: Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) ) ) Amortization of prior service cost ) ) ) — ) ) Recognized net actuarial loss Curtailment and settlement losses — — — Net periodic benefit cost for Ball-sponsored plans Net periodic benefit cost for multiemployer plans — — — — Total net periodic benefit cost $ $ $ $ $ $ Nine Months Ended September 30, 2015 2014 ($ in millions) U.S. Foreign Total U.S. Foreign Total Ball-sponsored plans: Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) ) ) Amortization of prior service cost ) ) ) — ) ) Recognized net actuarial loss Curtailment and settlement losses — — — — Net periodic benefit cost for Ball-sponsored plans Net periodic benefit cost for multiemployer plans — — Total net periodic benefit cost $ $ $ $ $ $ Contributions to the company’s defined global benefit pension plans, not including the unfunded German plans, were insignificant in the first nine months of 2015 ($83.6 million in 2014) and are also expected to be insignificant for the full year. This estimate may change based on changes in the U.S. Pension Protection Act and actual plan asset performance, among other factors. Payments to participants in the unfunded German plans were $13.7 million in the first nine months of 2015 and are expected to be approximately $19 million for the full year. |
Shareholders' Equity and Compre
Shareholders' Equity and Comprehensive Earnings | 9 Months Ended |
Sep. 30, 2015 | |
Shareholders' Equity and Comprehensive Earnings | |
Shareholders' Equity and Comprehensive Earnings | 13. Shareholders’ Equity and Comprehensive Earnings Accumulated Other Comprehensive Earnings (Loss) The activity related to accumulated other comprehensive earnings (loss) was as follows: ($ in millions) Foreign Currency Translation Pension and Other Postretirement Benefits (Net of Tax) Effective Derivatives (Net of Tax) Accumulated Other Comprehensive Earnings (Loss) Balance at December 31, 2014 $ ) $ ) $ ) $ ) Other comprehensive earnings (loss) before reclassifications ) ) ) Amounts reclassified from accumulated other comprehensive earnings (loss) — Balance at September 30, 2015 $ ) $ ) $ ) $ ) The following table provides additional details of the amounts recognized into net earnings from accumulated other comprehensive earnings (loss): Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2015 2014 2015 2014 Gains (losses) on cash flow hedges: Commodity contracts recorded in net sales $ $ ) $ $ ) Commodity contracts and currency exchange contracts recorded in cost of sales ) ) ) ) Interest rate contracts recorded in interest expense — ) ) Total before tax effect ) ) ) ) Tax benefit (provision) on amounts reclassified into earnings Recognized gain (loss) $ ) $ ) $ ) $ ) Amortization of pension and other postretirement benefits (a) : Prior service income (cost) $ $ $ $ Actuarial gains (losses) ) ) ) ) Total before tax effect ) ) ) ) Tax benefit (provision) on amounts reclassified into earnings Recognized gain (loss) $ ) $ ) $ ) $ ) (a) These components are included in the computation of net periodic benefit cost included in Note 12. |
Stock-Based Compensation Progra
Stock-Based Compensation Programs | 9 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation Programs | |
Stock-Based Compensation Programs | 14. 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 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 total of 1,231,865 stock options and SSARs were granted in February 2015. 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 2015 and 2014 have estimated weighted average fair values at the date of grant of $14.20 per share and $9.81 per share, respectively. The actual value an employee may realize will depend on the excess of the stock price over the exercise price on the date the option or SSAR is exercised. Consequently, there is no assurance that the value realized by an employee will be at or near the value estimated. The fair values were estimated using the following weighted average assumptions: February 2015 January 2014 Expected dividend yield Expected stock price volatility Risk-free interest rate Expected life of options (in years) 5.85 years 5.50 years In February 2015 and January 2014, the company’s board of directors granted 116,559 and 143,305 performance-contingent restricted stock units (PCEQs), respectively, to key employees. These PCEQs vest three years from the date of grant, and the number of shares available at the vesting date are based on the company’s growth in economic valued added (EVA®) dollars in excess of the EVA® dollars generated in the calendar year prior to grant as the minimum threshold, ranging from zero to 200 percent of each participant’s assigned award opportunity. If the minimum performance goals are not met, the shares will be forfeited. Grants under the plan are being accounted for as equity awards and compensation expense is recorded based upon the most probable outcome using the closing market price of the shares at the grant date. On a quarterly and annual basis, the company reassesses the probability of the goals being met and adjusts compensation expense as appropriate. |
Earnings and Dividends Per Shar
Earnings and Dividends Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings and Dividends Per Share | |
Earnings and Dividends Per Share | 15. Earnings and Dividends Per Share ($ in millions, except per share amounts; Three Months Ended September 30, Nine Months Ended September 30, shares in thousands) 2015 2014 2015 2014 Net earnings attributable to Ball Corporation $ $ $ $ Basic weighted average common shares Effect of dilutive securities Weighted average shares applicable to diluted earnings per share Per basic share $ $ $ $ Per diluted share $ $ $ $ Certain outstanding options were excluded from the diluted earnings per share calculation because they were antidilutive (i.e., their assumed conversion into common stock would increase rather than decrease earnings per share). The options excluded totaled 1.2 million in each of the three and nine months ended September 30, 2015, and the nine months ended September 30, 2014. There were no options excluded in the three months ended September 30, 2014. The company declared and paid dividends of $0.13 per share in each of the first three quarters of 2015 and 2014. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 9 Months Ended |
Sep. 30, 2015 | |
Financial Instruments and Risk Management | |
Financial Instruments and Risk Management | 16. Financial Instruments and Risk Management 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 September 30, 2015, the company had aluminum contracts limiting its aluminum exposure with notional amounts of approximately $336 million, of which approximately $130 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 four years. Included in shareholders’ equity at September 30, 2015, within accumulated other comprehensive earnings (loss) is a net after-tax loss of $15.5 million associated with these contracts. A net loss of $12.5 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 September 30, 2015, included pay-fixed interest rate swaps, which effectively convert variable rate obligations to fixed-rate instruments. At September 30, 2015, the company had outstanding interest rate swap contracts with notional amounts of approximately $146 million paying fixed rates expiring within the next four years. The after-tax loss included in shareholders’ equity at September 30, 2015, within accumulated other comprehensive earnings (loss) is insignificant. Interest Rate Risk—Rexam Acquisition The company entered into interest rate swaps to hedge against rising U.S. and European interest rates to minimize its interest rate exposure associated with anticipated debt issuances in connection with the announced, proposed acquisition of Rexam. At September 30, 2015, the company had outstanding interest rate swaps with notional amounts totaling approximately $250 million and €1,750 million. In addition, the company entered into interest rate option contracts to hedge negative Euribor rates with an aggregate notional amount of €750 million. Subsequent to the third quarter of 2015, the company entered into additional interest rate swap contracts to hedge against rising U.S. interest rates with aggregate notional amounts of approximately $100 million. These contracts were not designated as hedges, and therefore, changes in the fair value of these interest swap and option contracts are recognized in the unaudited condensed consolidated statements of earnings in debt refinancing and other costs, a component of total interest expense. The loss included in debt refinancing and other costs during the first nine months of 2015 associated with these contracts was $10 million. The contracts outstanding at September 30, 2015, expire within the next five years. Currency Exchange Rate Risk The company’s objective in managing exposure to currency fluctuations is to limit the exposure of cash flows and earnings to 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 currency exposures. Additionally, at September 30, 2015, the company had outstanding exchange forward contracts and option contracts with notional amounts totaling approximately $449 million. Included in shareholders’ equity at September 30, 2015, within accumulated other comprehensive earnings (loss) is a net after-tax loss of $2.2 million associated with these contracts. A net loss of $2.3 million is expected to be recognized in the consolidated statement of earnings during the next 12 months. The contracts outstanding at September 30, 2015, expire within the next year. Currency Exchange Rate Risk — Rexam Acquisition In connection with the announced, proposed acquisition of Rexam, the company entered into collar and option contracts to partially mitigate its currency exchange rate risk from February 19, 2015, through the expected closing date of the acquisition. At September 30, 2015, the company had outstanding collar and option contracts with notional amounts totaling approximately £2.3 billion ($3.4 billion). These contracts were not designated as hedges, and therefore, changes in the fair value of these contracts are recognized in the unaudited condensed consolidated statements of earnings in business consolidation and other activities (see Note 5). During the third quarter and first nine months of 2015, the company recognized losses of $104.6 million and of $36.3 million, respectively, associated with these contracts. The contracts outstanding at September 30, 2015, 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. 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 2016 and has a notional amount of 1 million shares. As of September 30, 2015, the fair value of the swap was a $4.8 million loss. All gains and losses on the total return swap are recorded in the unaudited condensed consolidated statements 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 derivative 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 September 30, 2015, the aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position was $63.5 million and $2.7 million of collateral was required to be posted. 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 $12.4 million and no collateral was required to be posted. Fair Value Measurements The company has classified all applicable financial derivative assets and liabilities as Level 2 within the fair value hierarchy and presented those values in the tables below. The company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy levels. The fair values of the company’s derivative instruments were as follows: September 30, 2015 December 31, 2014 ($ in millions) Derivatives Designated as Hedging Instruments Derivatives not Designated as Hedging Instruments Total Derivatives Designated as Hedging Instruments Derivatives not Designated as Hedging Instruments Total Assets: Commodity contracts $ $ $ $ $ $ Foreign currency contracts Total current derivative contracts $ $ $ $ $ $ Commodity contracts $ $ $ $ $ $ Foreign currency contracts — — — — — — Interest rate and other contracts — — Total noncurrent derivative contracts $ $ $ $ $ $ Liabilities: Commodity contracts $ $ $ $ $ $ Foreign currency contracts Interest rate and other contracts Total current derivative contracts $ $ $ $ $ $ Commodity contracts $ $ $ $ $ $ Interest rate and other contracts — Total noncurrent derivative contracts $ $ $ $ $ $ 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 September 30, 2015, has not identified any circumstances requiring that the reported values of our financial instruments be adjusted. Impact on Earnings from Derivative Instruments Three Months Ended September 30, 2015 2014 ($ in millions) Location of Gain (Loss) Recognized in Earnings on Derivatives Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) Gain (Loss) on Derivatives not Designated as Hedge Instruments Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) Gain (Loss) on Derivatives not Designated as Hedge Instruments Commodity contracts - manage exposure to customer pricing Net sales $ $ $ ) $ Commodity contracts - manage exposure to supplier pricing Cost of sales ) ) ) Interest rate contracts - manage exposure for outstanding debt Interest expense — — — Interest rate contracts - manage exposure for forecasted Rexam financing Debt refinancing and other costs — ) — — Foreign currency contracts - manage exposure to sales of products Cost of sales — ) Foreign currency contracts - manage exposure for transactions between segments Selling, general and administrative — ) ) Foreign currency contracts - manage exposure for proposed acquisition of Rexam Business consolidation and other activities — ) — — Equity contracts Selling, general and administrative — ) — ) Total $ ) $ ) $ ) $ ) Nine Months Ended September 30, 2015 2014 ($ in millions) Location of Gain (Loss) Recognized in Earnings on Derivatives Cash Flow Hedge - Reclassified Amount From Other Comprehensive Earnings (Loss) Gain (Loss) on Derivatives Not Designated As Hedge Instruments Cash Flow Hedge - Reclassified Amount From Other Comprehensive Earnings (Loss) Gain (Loss) on Derivatives Not Designated As Hedge Instruments Commodity contracts - manage exposure to customer pricing Net sales $ $ $ ) $ Commodity contracts - manage exposure to supplier pricing Cost of sales ) ) ) Interest rate contracts - manage exposure for outstanding debt Interest expense ) — ) — Interest rate contracts - manage exposure for forecasted Rexam financing Debt refinancing and other costs — ) — — Foreign currency contracts - manage exposure to sales of products Cost of sales ) ) Foreign currency contracts - manage exposure for transactions between segments Selling, general and administrative — ) — ) Foreign currency contracts - manage exposure for proposed acquisition of Rexam Business consolidation and other activities — ) — — Equity contracts Selling, general and administrative — ) — ) Total $ ) $ ) $ ) $ ) The changes in accumulated other comprehensive earnings (loss) for effective derivatives were as follows: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2015 2014 2015 2014 Amounts reclassified into earnings: Commodity contracts $ $ $ $ Interest rate contracts — ) Currency exchange contracts ) ) Change in fair value of cash flow hedges: Commodity contracts ) ) Interest rate contracts ) ) ) Currency exchange contracts ) ) ) Foreign currency and tax impacts ) ) ) $ ) $ $ ) $ |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Contingencies | |
Contingencies | 17. 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, and this process may last approximately two more 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. Total site remediation costs of $342 million are expected according to the proposed remediation action plan, which does not include $100 million that has already been spent, and which will be allocated among the numerous PRPs in due course. 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 Guarantees
Indemnifications and Guarantees | 9 Months Ended |
Sep. 30, 2015 | |
Indemnifications and Guarantees | |
Indemnifications and Guarantees | 18. 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 obligations under its senior notes and senior credit facilities are fully and unconditionally guaranteed, on a joint and several basis, by certain of the company’s domestic subsidiaries. All obligations under the guarantees of the credit facilities are secured, with certain exceptions, by a valid first priority perfected lien or pledge on (i) 100 percent of the stock of each of the company’s present and future direct and indirect wholly owned material domestic subsidiaries and (ii) 65 percent of the stock of each of the company’s present and future wholly owned material first-tier foreign subsidiaries. These guarantees are required in support of the notes and credit facilities referred to above, terminate upon maturity of the obligations and certain other events as described in the note indentures and credit agreements and would require performance upon certain events 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 note indentures and credit agreements. The company is not in default under the above note indentures or credit facilities. The unaudited condensed consolidating financial information for the guarantor and non-guarantor subsidiaries is presented in Note 19. 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 | 9 Months Ended |
Sep. 30, 2015 | |
Subsidiary Guarantees of Debt | |
Subsidiary Guarantees of Debt | 19. Subsidiary Guarantees of Debt The company’s obligations under its senior notes and senior credit facilities are fully and unconditionally guaranteed, on a joint and several basis, by certain of the company’s domestic subsidiaries. Each of the guarantor subsidiaries is 100 percent owned by Ball Corporation. These guarantees are required in support of the notes and credit facilities, terminate upon maturity of the obligations and certain other events as described in the note indentures and credit agreements and would require performance upon certain events 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 note indentures or credit facilities. The following is unaudited condensed, consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of September 30, 2015, and December 31, 2014, and for the three and nine months ended September 30, 2015 and 2014. 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. Unaudited Condensed Consolidating Statement of Earnings Three Months Ended September 30, 2015 Ball Guarantor Non-Guarantor Eliminating Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Adjustments Total Net sales $ — $ $ $ ) $ Cost and expenses Cost of sales (excluding depreciation and amortization) — ) ) ) Depreciation and amortization ) ) ) — ) Selling, general and administrative ) ) ) — ) Business consolidation and other activities ) ) ) — ) Equity in results of subsidiaries — ) — Intercompany ) ) — — ) ) ) ) Earnings (loss) before interest and taxes ) Interest expense ) ) — ) Debt refinancing and other costs ) — — — ) Total interest expense ) ) — ) Earnings (loss) before taxes ) ) Tax (provision) benefit ) ) — Equity in results of affiliates, net of tax — — Net earnings (loss) ) Less net earnings attributable to noncontrolling interests — — ) — ) Net earnings (loss) attributable to Ball Corporation $ $ $ $ ) $ Comprehensive earnings (loss) attributable to Ball Corporation $ $ $ $ ) $ Unaudited Condensed Consolidating Statement of Earnings Three Months Ended September 30, 2014 Ball Guarantor Non-Guarantor Eliminating Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Adjustments Total Net sales $ — $ $ $ ) $ Cost and expenses Cost of sales (excluding depreciation and amortization) — ) ) ) Depreciation and amortization ) ) ) — ) Selling, general and administrative ) ) ) — ) Business consolidation and other activities ) ) ) — ) Equity in results of subsidiaries — ) — Intercompany ) ) — — ) ) ) ) Earnings (loss) before interest and taxes ) Total interest (expense) ) ) — ) Earnings (loss) before taxes ) Tax (provision) benefit ) ) — ) Equity in results of affiliates, net of tax — ) — Net earnings (loss) ) Less net earnings attributable to noncontrolling interests — — ) — ) Net earnings (loss) attributable to Ball Corporation $ $ $ $ ) $ Comprehensive earnings (loss) attributable to Ball Corporation $ $ $ ) $ ) $ Unaudited Condensed Consolidating Statement of Earnings Nine Months Ended September 30, 2015 Ball Guarantor Non-Guarantor Eliminating Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Adjustments Total Net sales $ — $ $ $ ) $ Cost and expenses Cost of sales (excluding depreciation and amortization) ) ) ) Depreciation and amortization ) ) ) — ) Selling, general and administrative ) ) ) — ) Business consolidation and other activities ) ) ) — ) Equity in results of subsidiaries — ) — Intercompany ) ) — — ) ) ) ) Earnings (loss) before interest and taxes ) Interest expense ) ) — ) Debt refinancing and other costs ) — ) — ) Total interest expense ) ) — ) Earnings (loss) before taxes ) Tax (provision) benefit ) ) — ) Equity in results of affiliates, net of tax — — Net earnings (loss) ) Less net earnings attributable to noncontrolling interests — — ) — ) Net earnings (loss) attributable to Ball Corporation $ $ $ $ ) $ Comprehensive earnings attributable to Ball Corporation $ $ $ $ ) $ Unaudited Condensed Consolidating Statement of Earnings Nine Months Ended September 30, 2014 Ball Guarantor Non-Guarantor Eliminating Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Adjustments Total Net sales $ — $ $ $ ) $ Cost and expenses Cost of sales (excluding depreciation and amortization) ) ) ) ) Depreciation and amortization ) ) ) — ) Selling, general and administrative ) ) ) — ) Business consolidation and other activities ) ) — — ) Equity in results of subsidiaries — ) — Intercompany ) ) — — ) ) ) ) Earnings (loss) before interest and taxes ) Total interest (expense) ) ) — ) Debt refinancing and other costs ) — — — ) Total interest expense ) ) — ) Earnings (loss) before taxes ) Tax (provision) benefit ) ) — ) Equity in results of affiliates, net of tax — — Net earnings (loss) ) Less net earnings attributable to noncontrolling interests — — ) — ) Net earnings (loss) attributable to Ball Corporation $ $ $ $ ) $ Comprehensive earnings attributable to Ball Corporation $ $ $ $ ) $ Unaudited Condensed Consolidating Balance Sheet September 30, 2015 Ball Guarantor Non-Guarantor Eliminating Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Adjustments Total Assets Current assets Cash and cash equivalents $ $ $ $ — $ Receivables, net — Intercompany receivables ) — Inventories, net — — Deferred taxes and other current assets — Total current assets ) Noncurrent assets Property, plant and equipment, net — Investment in subsidiaries ) — Goodwill — — Intangibles and other assets, net — Total assets $ $ $ $ ) $ Liabilities and Shareholders’ Equity Current liabilities Short-term debt and current portion of long-term debt $ $ $ $ — $ Accounts payable — Intercompany payables ) ) — Accrued employee costs — Other current liabilities — Total current liabilities ) Noncurrent liabilities Long-term debt — Employee benefit obligations — Intercompany long-term notes ) — — Deferred taxes and other liabilities ) — Total liabilities ) Common stock ) Preferred stock — — ) — Retained earnings ) Accumulated other comprehensive earnings (loss) ) ) ) ) Treasury stock, at cost ) — — — ) Total Ball Corporation shareholders’ equity ) Noncontrolling interests — — — Total shareholders’ equity ) Total liabilities and shareholders’ equity $ $ $ $ ) $ Unaudited Condensed Consolidating Balance Sheet December 31, 2014 Ball Guarantor Non-Guarantor Eliminating Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Adjustments Total Assets Current assets Cash and cash equivalents $ $ $ $ — $ Receivables, net — Intercompany receivables ) — Inventories, net — — Deferred taxes and other current assets — Total current assets ) Noncurrent assets Property, plant and equipment, net — Investment in subsidiaries ) — Goodwill — — Intangibles and other assets, net — Total assets $ $ $ $ ) $ Liabilities and Shareholders’ Equity Current liabilities Short-term debt and current portion of long-term debt $ $ $ $ — $ Accounts payable — Intercompany payables ) — Accrued employee costs — Other current liabilities — Total current liabilities ) Noncurrent liabilities Long-term debt — Employee benefit obligations — Intercompany long-term notes ) — — Deferred taxes and other liabilities ) — Total liabilities ) Common stock ) Preferred stock — — ) — Retained earnings ) Accumulated other comprehensive earnings (loss) ) ) ) ) Treasury stock, at cost ) — — — ) Total Ball Corporation shareholders’ equity ) Noncontrolling interests — — — Total shareholders’ equity ) Total liabilities and shareholders’ equity $ $ $ $ ) $ Unaudited Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2015 Ball Guarantor Non-Guarantor Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Total Cash provided by (used in) operating activities $ $ $ $ Cash flows from investing activities Capital expenditures ) ) ) ) Business acquisitions — ) — ) Other, net Cash provided by (used in) investing activities ) ) ) ) Cash flows from financing activities Long-term borrowings — Repayments of long-term borrowings ) — ) ) Net change in short-term borrowings ) Proceeds from issuances of common stock — — Acquisitions of treasury stock ) — — ) Common dividends ) — — ) Intercompany ) — Other, net ) ) ) ) Cash provided by (used in) financing activities ) ) Effect of exchange rate changes on cash ) — Change in cash and cash equivalents ) Cash and cash equivalents — beginning of period Cash and cash equivalents — end of period $ $ $ $ Unaudited Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2014 Ball Guarantor Non-Guarantor Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Total Cash provided by (used in) operating activities $ ) $ $ $ Cash flows from investing activities Capital expenditures ) ) ) ) Other, net Cash provided by (used in) investing activities ) ) ) ) Cash flows from financing activities Long-term borrowings — Repayments of long-term borrowings ) ) ) ) Net change in short-term borrowings Proceeds from issuances of common stock — — Acquisitions of treasury stock ) — — ) Common dividends ) — — ) Intercompany ) ) — Other, net — ) Cash provided by (used in) financing activities ) ) ) ) Effect of exchange rate changes on cash ) — ) Change in cash and cash equivalents ) ) ) Cash and cash equivalents — beginning of period Cash and cash equivalents — end of period $ $ $ $ |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events | |
Subsequent Events | 20. Subsequent Events A wholly-owned subsidiary of Ball owns interests in a joint venture company (Latapack-Ball) organized and operating in Brazil. On October 27, 2015, Ball and its joint venture partners announced that they have reached an agreement, pursuant to which Ball’s joint venture partners agreed to exchange all of their interests in Latapack-Ball for a total of 6 million treasury shares of Ball common stock. The actual value of the transaction will be determined based on the company’s stock price at the time of the close of the transaction. This transaction is subject to certain regulatory approvals and other conditions. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Segment Information | |
Summary of business by segment | Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2015 2014 2015 2014 Net sales Metal beverage packaging, Americas & Asia $ $ $ $ Metal beverage packaging, Europe Metal food & household products packaging Aerospace & technologies Corporate and intercompany eliminations ) ) ) ) Net sales $ $ $ $ Net earnings Metal beverage packaging, Americas & Asia $ $ $ $ Business consolidation and other activities ) ) ) Total metal beverage packaging, Americas & Asia Metal beverage packaging, Europe Business consolidation and other activities ) ) ) ) Total metal beverage packaging, Europe Metal food & household products packaging Business consolidation and other activities ) ) ) ) Total metal food & household products packaging Aerospace & technologies Business consolidation and other activities — — — Total aerospace & technologies Segment earnings before interest and taxes Undistributed corporate expenses and intercompany eliminations, net ) ) ) ) Business consolidation and other activities ) ) ) ) Total undistributed corporate expenses and intercompany eliminations, net ) ) ) ) Earnings before interest and taxes Interest expense ) ) ) ) Debt refinancing and other costs ) — ) ) Total interest expense ) ) ) ) Tax (provision) benefit ) ) ) Equity in results of affiliates, net of tax Net earnings Less net earnings attributable to noncontrolling interests ) ) ) ) Net earnings attibutable to Ball Corporation $ $ $ $ September 30, December 31, ($ in millions) 2015 2014 Total Assets Metal beverage packaging, Americas & Asia $ $ Metal beverage packaging, Europe Metal food & household products packaging Aerospace & technologies Segment assets Corporate assets, net of eliminations ) ) Total assets $ $ |
Business Consolidation and Ot28
Business Consolidation and Other Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Consolidation and Other Activities | |
Summary of business consolidation and other activity charges included in the condensed consolidated statements of earnings | Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2015 2014 2015 2014 Metal beverage packaging, Americas & Asia $ ) $ ) $ ) $ Metal beverage packaging, Europe ) ) ) ) Metal food & household products packaging ) ) ) ) Aerospace & technologies — — — Corporate and other ) ) ) ) $ ) $ ) $ ) $ ) |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables | |
Schedule of receivables | September 30, December 31, ($ in millions) 2015 2014 Trade accounts receivable $ $ Less allowance for doubtful accounts ) ) Net trade accounts receivable Other receivables $ $ |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventories | |
Schedule of inventories | September 30, December 31, ($ in millions) 2015 2014 Raw materials and supplies $ $ Work-in-process and finished goods Less inventory reserves ) ) $ $ |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment | |
Schedule of property, plant and equipment | September 30, December 31, ($ in millions) 2015 2014 Land $ $ Buildings Machinery and equipment Construction-in-progress Less accumulated depreciation ) ) $ $ |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill | |
Schedule of goodwill | ($ in millions) Metal Beverage Packaging, Americas & Asia Metal Beverage Packaging, Europe Metal Food & Household Products Packaging Aerospace & Technologies Total Balance at December 31, 2014 $ $ $ $ $ Business acquisition — — — Effects of currency exchange rates — ) ) — ) Balance at September 30, 2015 $ $ $ $ $ |
Intangibles and Other Assets (T
Intangibles and Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Intangibles and Other Assets | |
Schedule of intangibles and other assets | September 30, December 31, ($ in millions) 2015 2014 Investments in affiliates $ $ Intangible assets (net of accumulated amortization of $129.9 million at September 30, 2015 and $115.2 million at December 31, 2014) Capitalized software (net of accumulated amortization of $112.4 million at September 30, 2015, and $103.8 million at December 31, 2014) Company and trust-owned life insurance Long-term derivative assets Deferred financing costs Long-term deferred tax assets Other $ $ |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt | |
Schedule of long-term debt | September 30, December 31, ($ in millions) 2015 2014 Notes Payable 6.75% Senior Notes, due September 2020 $ — $ 5.75% Senior Notes, due May 2021 — 5.00% Senior Notes, due March 2022 4.00% Senior Notes, due November 2023 5.25% Senior Notes, due June 2025 — Multi-currency revolver, due February 2018 (at variable rates) — — Bridge Facility — — Senior Credit Facilities, due June 2018 (at variable rates) Term C loan, euro denominated — Latapack-Ball Notes Payable (at various rates and terms), denominated in various currencies Other (including discounts), denominated in various currencies ) Less current portion of long-term debt ) ) $ $ |
Employee Benefit Obligations (T
Employee Benefit Obligations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Employee Benefit Obligations | |
Schedule of employee benefit obligations | September 30, December 31, ($ in millions) 2015 2014 Underfunded defined benefit pension liabilities, net $ $ Less current portion and prepaid pension assets ) ) Long-term defined benefit pension liabilities Retiree medical and other postemployment benefits Deferred compensation plans Other $ $ |
Defined Benefit Pension Plans | |
Employee Benefit Obligations | |
Components of net periodic benefit cost | Three Months Ended September 30, 2015 2014 ($ in millions) U.S. Foreign Total U.S. Foreign Total Ball-sponsored plans: Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) ) ) Amortization of prior service cost ) ) ) — ) ) Recognized net actuarial loss Curtailment and settlement losses — — — Net periodic benefit cost for Ball-sponsored plans Net periodic benefit cost for multiemployer plans — — — — Total net periodic benefit cost $ $ $ $ $ $ Nine Months Ended September 30, 2015 2014 ($ in millions) U.S. Foreign Total U.S. Foreign Total Ball-sponsored plans: Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) ) ) Amortization of prior service cost ) ) ) — ) ) Recognized net actuarial loss Curtailment and settlement losses — — — — Net periodic benefit cost for Ball-sponsored plans Net periodic benefit cost for multiemployer plans — — Total net periodic benefit cost $ $ $ $ $ $ |
Shareholders' Equity and Comp36
Shareholders' Equity and Comprehensive Earnings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Shareholders' Equity and Comprehensive Earnings | |
Schedule of activity related to accumulated other comprehensive earnings (loss) | ($ in millions) Foreign Currency Translation Pension and Other Postretirement Benefits (Net of Tax) Effective Derivatives (Net of Tax) Accumulated Other Comprehensive Earnings (Loss) Balance at December 31, 2014 $ ) $ ) $ ) $ ) Other comprehensive earnings (loss) before reclassifications ) ) ) Amounts reclassified from accumulated other comprehensive earnings (loss) — Balance at September 30, 2015 $ ) $ ) $ ) $ ) |
Information related to amounts recognized into net earnings from AOCI | Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2015 2014 2015 2014 Gains (losses) on cash flow hedges: Commodity contracts recorded in net sales $ $ ) $ $ ) Commodity contracts and currency exchange contracts recorded in cost of sales ) ) ) ) Interest rate contracts recorded in interest expense — ) ) Total before tax effect ) ) ) ) Tax benefit (provision) on amounts reclassified into earnings Recognized gain (loss) $ ) $ ) $ ) $ ) Amortization of pension and other postretirement benefits (a) : Prior service income (cost) $ $ $ $ Actuarial gains (losses) ) ) ) ) Total before tax effect ) ) ) ) Tax benefit (provision) on amounts reclassified into earnings Recognized gain (loss) $ ) $ ) $ ) $ ) (a) These components are included in the computation of net periodic benefit cost included in Note 12. |
Stock-Based Compensation Prog37
Stock-Based Compensation Programs (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation Programs | |
Schedule of weighted average assumptions used for estimating fair values of options | February 2015 January 2014 Expected dividend yield Expected stock price volatility Risk-free interest rate Expected life of options (in years) 5.85 years 5.50 years |
Earnings and Dividends Per Sh38
Earnings and Dividends Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings and Dividends Per Share | |
Schedule of earnings per share | ($ in millions, except per share amounts; Three Months Ended September 30, Nine Months Ended September 30, shares in thousands) 2015 2014 2015 2014 Net earnings attributable to Ball Corporation $ $ $ $ Basic weighted average common shares Effect of dilutive securities Weighted average shares applicable to diluted earnings per share Per basic share $ $ $ $ Per diluted share $ $ $ $ |
Financial Instruments and Ris39
Financial Instruments and Risk Management (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Financial Instruments and Risk Management | |
Schedule of fair value of derivative instruments | September 30, 2015 December 31, 2014 ($ in millions) Derivatives Designated as Hedging Instruments Derivatives not Designated as Hedging Instruments Total Derivatives Designated as Hedging Instruments Derivatives not Designated as Hedging Instruments Total Assets: Commodity contracts $ $ $ $ $ $ Foreign currency contracts Total current derivative contracts $ $ $ $ $ $ Commodity contracts $ $ $ $ $ $ Foreign currency contracts — — — — — — Interest rate and other contracts — — Total noncurrent derivative contracts $ $ $ $ $ $ Liabilities: Commodity contracts $ $ $ $ $ $ Foreign currency contracts Interest rate and other contracts Total current derivative contracts $ $ $ $ $ $ Commodity contracts $ $ $ $ $ $ Interest rate and other contracts — Total noncurrent derivative contracts $ $ $ $ $ $ |
Schedule of impact on earnings from derivative instruments | Three Months Ended September 30, 2015 2014 ($ in millions) Location of Gain (Loss) Recognized in Earnings on Derivatives Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) Gain (Loss) on Derivatives not Designated as Hedge Instruments Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) Gain (Loss) on Derivatives not Designated as Hedge Instruments Commodity contracts - manage exposure to customer pricing Net sales $ $ $ ) $ Commodity contracts - manage exposure to supplier pricing Cost of sales ) ) ) Interest rate contracts - manage exposure for outstanding debt Interest expense — — — Interest rate contracts - manage exposure for forecasted Rexam financing Debt refinancing and other costs — ) — — Foreign currency contracts - manage exposure to sales of products Cost of sales — ) Foreign currency contracts - manage exposure for transactions between segments Selling, general and administrative — ) ) Foreign currency contracts - manage exposure for proposed acquisition of Rexam Business consolidation and other activities — ) — — Equity contracts Selling, general and administrative — ) — ) Total $ ) $ ) $ ) $ ) Nine Months Ended September 30, 2015 2014 ($ in millions) Location of Gain (Loss) Recognized in Earnings on Derivatives Cash Flow Hedge - Reclassified Amount From Other Comprehensive Earnings (Loss) Gain (Loss) on Derivatives Not Designated As Hedge Instruments Cash Flow Hedge - Reclassified Amount From Other Comprehensive Earnings (Loss) Gain (Loss) on Derivatives Not Designated As Hedge Instruments Commodity contracts - manage exposure to customer pricing Net sales $ $ $ ) $ Commodity contracts - manage exposure to supplier pricing Cost of sales ) ) ) Interest rate contracts - manage exposure for outstanding debt Interest expense ) — ) — Interest rate contracts - manage exposure for forecasted Rexam financing Debt refinancing and other costs — ) — — Foreign currency contracts - manage exposure to sales of products Cost of sales ) ) Foreign currency contracts - manage exposure for transactions between segments Selling, general and administrative — ) — ) Foreign currency contracts - manage exposure for proposed acquisition of Rexam Business consolidation and other activities — ) — — Equity contracts Selling, general and administrative — ) — ) Total $ ) $ ) $ ) $ ) |
Schedule of changes in accumulated other comprehensive earnings (loss) for effective derivatives | Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2015 2014 2015 2014 Amounts reclassified into earnings: Commodity contracts $ $ $ $ Interest rate contracts — ) Currency exchange contracts ) ) Change in fair value of cash flow hedges: Commodity contracts ) ) Interest rate contracts ) ) ) Currency exchange contracts ) ) ) Foreign currency and tax impacts ) ) ) $ ) $ $ ) $ |
Subsidiary Guarantees of Debt (
Subsidiary Guarantees of Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Subsidiary Guarantees of Debt | |
Schedule of Condensed Consolidating Statement of Earnings | Unaudited Condensed Consolidating Statement of Earnings Three Months Ended September 30, 2015 Ball Guarantor Non-Guarantor Eliminating Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Adjustments Total Net sales $ — $ $ $ ) $ Cost and expenses Cost of sales (excluding depreciation and amortization) — ) ) ) Depreciation and amortization ) ) ) — ) Selling, general and administrative ) ) ) — ) Business consolidation and other activities ) ) ) — ) Equity in results of subsidiaries — ) — Intercompany ) ) — — ) ) ) ) Earnings (loss) before interest and taxes ) Interest expense ) ) — ) Debt refinancing and other costs ) — — — ) Total interest expense ) ) — ) Earnings (loss) before taxes ) ) Tax (provision) benefit ) ) — Equity in results of affiliates, net of tax — — Net earnings (loss) ) Less net earnings attributable to noncontrolling interests — — ) — ) Net earnings (loss) attributable to Ball Corporation $ $ $ $ ) $ Comprehensive earnings (loss) attributable to Ball Corporation $ $ $ $ ) $ Unaudited Condensed Consolidating Statement of Earnings Three Months Ended September 30, 2014 Ball Guarantor Non-Guarantor Eliminating Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Adjustments Total Net sales $ — $ $ $ ) $ Cost and expenses Cost of sales (excluding depreciation and amortization) — ) ) ) Depreciation and amortization ) ) ) — ) Selling, general and administrative ) ) ) — ) Business consolidation and other activities ) ) ) — ) Equity in results of subsidiaries — ) — Intercompany ) ) — — ) ) ) ) Earnings (loss) before interest and taxes ) Total interest (expense) ) ) — ) Earnings (loss) before taxes ) Tax (provision) benefit ) ) — ) Equity in results of affiliates, net of tax — ) — Net earnings (loss) ) Less net earnings attributable to noncontrolling interests — — ) — ) Net earnings (loss) attributable to Ball Corporation $ $ $ $ ) $ Comprehensive earnings (loss) attributable to Ball Corporation $ $ $ ) $ ) $ Unaudited Condensed Consolidating Statement of Earnings Nine Months Ended September 30, 2015 Ball Guarantor Non-Guarantor Eliminating Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Adjustments Total Net sales $ — $ $ $ ) $ Cost and expenses Cost of sales (excluding depreciation and amortization) ) ) ) Depreciation and amortization ) ) ) — ) Selling, general and administrative ) ) ) — ) Business consolidation and other activities ) ) ) — ) Equity in results of subsidiaries — ) — Intercompany ) ) — — ) ) ) ) Earnings (loss) before interest and taxes ) Interest expense ) ) — ) Debt refinancing and other costs ) — ) — ) Total interest expense ) ) — ) Earnings (loss) before taxes ) Tax (provision) benefit ) ) — ) Equity in results of affiliates, net of tax — — Net earnings (loss) ) Less net earnings attributable to noncontrolling interests — — ) — ) Net earnings (loss) attributable to Ball Corporation $ $ $ $ ) $ Comprehensive earnings attributable to Ball Corporation $ $ $ $ ) $ Unaudited Condensed Consolidating Statement of Earnings Nine Months Ended September 30, 2014 Ball Guarantor Non-Guarantor Eliminating Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Adjustments Total Net sales $ — $ $ $ ) $ Cost and expenses Cost of sales (excluding depreciation and amortization) ) ) ) ) Depreciation and amortization ) ) ) — ) Selling, general and administrative ) ) ) — ) Business consolidation and other activities ) ) — — ) Equity in results of subsidiaries — ) — Intercompany ) ) — — ) ) ) ) Earnings (loss) before interest and taxes ) Total interest (expense) ) ) — ) Debt refinancing and other costs ) — — — ) Total interest expense ) ) — ) Earnings (loss) before taxes ) Tax (provision) benefit ) ) — ) Equity in results of affiliates, net of tax — — Net earnings (loss) ) Less net earnings attributable to noncontrolling interests — — ) — ) Net earnings (loss) attributable to Ball Corporation $ $ $ $ ) $ Comprehensive earnings attributable to Ball Corporation $ $ $ $ ) $ |
Schedule of Condensed Consolidating Balance Sheet | Unaudited Condensed Consolidating Balance Sheet September 30, 2015 Ball Guarantor Non-Guarantor Eliminating Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Adjustments Total Assets Current assets Cash and cash equivalents $ $ $ $ — $ Receivables, net — Intercompany receivables ) — Inventories, net — — Deferred taxes and other current assets — Total current assets ) Noncurrent assets Property, plant and equipment, net — Investment in subsidiaries ) — Goodwill — — Intangibles and other assets, net — Total assets $ $ $ $ ) $ Liabilities and Shareholders’ Equity Current liabilities Short-term debt and current portion of long-term debt $ $ $ $ — $ Accounts payable — Intercompany payables ) ) — Accrued employee costs — Other current liabilities — Total current liabilities ) Noncurrent liabilities Long-term debt — Employee benefit obligations — Intercompany long-term notes ) — — Deferred taxes and other liabilities ) — Total liabilities ) Common stock ) Preferred stock — — ) — Retained earnings ) Accumulated other comprehensive earnings (loss) ) ) ) ) Treasury stock, at cost ) — — — ) Total Ball Corporation shareholders’ equity ) Noncontrolling interests — — — Total shareholders’ equity ) Total liabilities and shareholders’ equity $ $ $ $ ) $ Unaudited Condensed Consolidating Balance Sheet December 31, 2014 Ball Guarantor Non-Guarantor Eliminating Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Adjustments Total Assets Current assets Cash and cash equivalents $ $ $ $ — $ Receivables, net — Intercompany receivables ) — Inventories, net — — Deferred taxes and other current assets — Total current assets ) Noncurrent assets Property, plant and equipment, net — Investment in subsidiaries ) — Goodwill — — Intangibles and other assets, net — Total assets $ $ $ $ ) $ Liabilities and Shareholders’ Equity Current liabilities Short-term debt and current portion of long-term debt $ $ $ $ — $ Accounts payable — Intercompany payables ) — Accrued employee costs — Other current liabilities — Total current liabilities ) Noncurrent liabilities Long-term debt — Employee benefit obligations — Intercompany long-term notes ) — — Deferred taxes and other liabilities ) — Total liabilities ) Common stock ) Preferred stock — — ) — Retained earnings ) Accumulated other comprehensive earnings (loss) ) ) ) ) Treasury stock, at cost ) — — — ) Total Ball Corporation shareholders’ equity ) Noncontrolling interests — — — Total shareholders’ equity ) Total liabilities and shareholders’ equity $ $ $ $ ) $ |
Schedule of Condensed Consolidating Statement of Cash Flows | Unaudited Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2015 Ball Guarantor Non-Guarantor Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Total Cash provided by (used in) operating activities $ $ $ $ Cash flows from investing activities Capital expenditures ) ) ) ) Business acquisitions — ) — ) Other, net Cash provided by (used in) investing activities ) ) ) ) Cash flows from financing activities Long-term borrowings — Repayments of long-term borrowings ) — ) ) Net change in short-term borrowings ) Proceeds from issuances of common stock — — Acquisitions of treasury stock ) — — ) Common dividends ) — — ) Intercompany ) — Other, net ) ) ) ) Cash provided by (used in) financing activities ) ) Effect of exchange rate changes on cash ) — Change in cash and cash equivalents ) Cash and cash equivalents — beginning of period Cash and cash equivalents — end of period $ $ $ $ Unaudited Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2014 Ball Guarantor Non-Guarantor Consolidated ($ in millions) Corporation Subsidiaries Subsidiaries Total Cash provided by (used in) operating activities $ ) $ $ $ Cash flows from investing activities Capital expenditures ) ) ) ) Other, net Cash provided by (used in) investing activities ) ) ) ) Cash flows from financing activities Long-term borrowings — Repayments of long-term borrowings ) ) ) ) Net change in short-term borrowings Proceeds from issuances of common stock — — Acquisitions of treasury stock ) — — ) Common dividends ) — — ) Intercompany ) ) — Other, net — ) Cash provided by (used in) financing activities ) ) ) ) Effect of exchange rate changes on cash ) — ) Change in cash and cash equivalents ) ) ) Cash and cash equivalents — beginning of period Cash and cash equivalents — end of period $ $ $ $ |
Business Segment Information (D
Business Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Business Segment Information | |||||
Number of reportable segments | segment | 4 | ||||
Business Segment Information | |||||
Net sales | $ 2,097 | $ 2,238.9 | $ 6,192.4 | $ 6,537.6 | |
Business consolidation and other activities | (151.9) | (9.2) | (138.3) | (17.8) | |
Earnings before interest and taxes | 76.1 | 228 | 475.8 | 701.3 | |
Interest expense | (37.5) | (40.1) | (107) | (120.9) | |
Debt refinancing and other costs | (21) | (85.9) | (33.1) | ||
Total interest expense | (58.5) | (40.1) | (192.9) | (154) | |
Tax (provision) benefit | 31 | (39.8) | (47.9) | (139.6) | |
Equity in results of affiliates, net of tax | 1.5 | 0.3 | 3.4 | 1.9 | |
Net earnings | 50.1 | 148.4 | 238.4 | 409.6 | |
Less net earnings attributable to noncontrolling interests | (5.6) | (1) | (12.8) | (15.6) | |
Net earnings attributable to Ball Corporation | 44.5 | 147.4 | 225.6 | 394 | |
Segment Assets | |||||
Assets | 7,727 | 7,727 | $ 7,571 | ||
Operating Segments | |||||
Business Segment Information | |||||
Earnings before interest and taxes | 222.4 | 252.8 | 650.7 | 766.5 | |
Segment Assets | |||||
Assets | 7,890.3 | 7,890.3 | 7,617 | ||
Operating Segments | Metal beverage packaging, Americas and Asia | |||||
Business Segment Information | |||||
Net sales | 1,072.3 | 1,079.6 | 3,226.9 | 3,207.3 | |
Earnings before business consolidation and other activities, and before interest and taxes | 131.9 | 133.7 | 383.4 | 400.8 | |
Business consolidation and other activities | (21.2) | (0.1) | (23.8) | 1.7 | |
Earnings before interest and taxes | 110.7 | 133.6 | 359.6 | 402.5 | |
Segment Assets | |||||
Assets | 3,534.4 | 3,534.4 | 3,422.8 | ||
Operating Segments | Metal beverage packaging, Europe | |||||
Business Segment Information | |||||
Net sales | 450.1 | 489.2 | 1,310.3 | 1,497.8 | |
Earnings before business consolidation and other activities, and before interest and taxes | 61.1 | 63.8 | 149.6 | 193 | |
Business consolidation and other activities | (1.3) | (4.3) | (8.6) | (6.6) | |
Earnings before interest and taxes | 59.8 | 59.5 | 141 | 186.4 | |
Segment Assets | |||||
Assets | 2,309.6 | 2,309.6 | 2,274.5 | ||
Operating Segments | Metal food & household products packaging | |||||
Business Segment Information | |||||
Net sales | 372 | 450.6 | 1,012.3 | 1,159.4 | |
Earnings before business consolidation and other activities, and before interest and taxes | 30.6 | 43 | 89.5 | 119.1 | |
Business consolidation and other activities | (0.1) | (4.5) | (1) | (11.6) | |
Earnings before interest and taxes | 30.5 | 38.5 | 88.5 | 107.5 | |
Segment Assets | |||||
Assets | 1,645.1 | 1,645.1 | 1,508.1 | ||
Operating Segments | Aerospace & technologies | |||||
Business Segment Information | |||||
Net sales | 203.4 | 221.7 | 648.4 | 683.5 | |
Earnings before business consolidation and other activities, and before interest and taxes | 21.4 | 21.2 | 60.9 | 70.1 | |
Business consolidation and other activities | 0.7 | ||||
Earnings before interest and taxes | 21.4 | 21.2 | 61.6 | 70.1 | |
Segment Assets | |||||
Assets | 401.2 | 401.2 | 411.6 | ||
Corporate and intercompany eliminations | |||||
Business Segment Information | |||||
Net sales | (0.8) | (2.2) | (5.5) | (10.4) | |
Undistributed corporate expenses and intercompany eliminations, net | (17) | (24.5) | (69.3) | (63.9) | |
Business consolidation and other activities | (129.3) | (0.3) | (105.6) | (1.3) | |
Total undistributed corporate expenses and intercompany eliminations, net | (146.3) | $ (24.8) | (174.9) | $ (65.2) | |
Segment Assets | |||||
Assets | $ (163.3) | $ (163.3) | $ (46) |
Acquisitions (Details)
Acquisitions (Details) £ / shares in Units, $ in Thousands, € in Millions | Feb. 17, 2015GBP (£)£ / shares | Feb. 17, 2015USD ($) | Feb. 28, 2015USD ($) | Oct. 31, 2015USD ($) | Oct. 27, 2015shares | Sep. 30, 2015EUR (€) | Sep. 30, 2015GBP (£) | Sep. 30, 2015USD ($) | Jul. 28, 2015 | Jun. 30, 2015USD ($) | Feb. 28, 2015GBP (£) | Feb. 28, 2015USD ($) | Feb. 19, 2015GBP (£)shares | Dec. 31, 2014USD ($) |
Acquisitions | ||||||||||||||
Long-term debt | $ 2,933,800 | $ 3,048,800 | ||||||||||||
Interest rate swap agreements | ||||||||||||||
Acquisitions | ||||||||||||||
Notional amount of derivatives | 146,000 | |||||||||||||
Rexam PLC | ||||||||||||||
Acquisitions | ||||||||||||||
Cash paid per share of acquire stock | £ | £ 4.07 | |||||||||||||
Number of shares issued per share of acquire stock | shares | 0.04568 | |||||||||||||
Share price | £ / shares | £ 6.10 | |||||||||||||
Weighted average price period | 90 days | 90 days | ||||||||||||
Exchange rate of US dollar to pound | 1.54 | |||||||||||||
Equity value | £ 4,300,000,000 | $ 6,600,000 | ||||||||||||
Latapack-Ball Embalagens Ltda. (Latapack-Ball) | ||||||||||||||
Acquisitions | ||||||||||||||
Treasury stock exchanged (in shares) | shares | 6,000,000 | |||||||||||||
Rexam PLC | ||||||||||||||
Acquisitions | ||||||||||||||
Shares voted (as a percent) | 83.00% | |||||||||||||
Shares voted approving proposal (as a percent) | 99.20% | |||||||||||||
Rexam PLC | Currency exchange option and collar | Derivatives Not Designated As Hedging Instruments | ||||||||||||||
Acquisitions | ||||||||||||||
Notional amount of derivatives | £ 2,300,000,000 | 3,400,000 | ||||||||||||
Rexam PLC | Interest rate swap agreements | Derivatives Not Designated As Hedging Instruments | ||||||||||||||
Acquisitions | ||||||||||||||
Notional amount of derivatives | $ 100,000 | € 1,750 | 250,000 | |||||||||||
Rexam PLC | Interest rate swaption | Derivatives Not Designated As Hedging Instruments | ||||||||||||||
Acquisitions | ||||||||||||||
Notional amount of derivatives | € | € 750 | |||||||||||||
Rexam PLC | Maximum | ||||||||||||||
Acquisitions | ||||||||||||||
Amount of break payment | £ | £ 302,000,000 | |||||||||||||
Sonoco | ||||||||||||||
Acquisitions | ||||||||||||||
Business acquired in cash | $ 29,100 | |||||||||||||
Contingent cash consideration | $ 10,500 | |||||||||||||
Contingent noncash consideration | 24,400 | |||||||||||||
Bridge Facility | ||||||||||||||
Acquisitions | ||||||||||||||
Face amount of debt | £ | £ 3,300,000,000 | |||||||||||||
Revolving Credit Facility | ||||||||||||||
Acquisitions | ||||||||||||||
Maximum borrowing capacity of revolving credit facility | $ 2,250,000 | 3,000,000 | ||||||||||||
Face amount of debt | $ 1,000,000 | |||||||||||||
Interest rate swap agreements | Rexam PLC | Derivatives Not Designated As Hedging Instruments | ||||||||||||||
Acquisitions | ||||||||||||||
Notional amount of derivatives | $ 100,000 | |||||||||||||
Term C Loan, euro denominated | ||||||||||||||
Acquisitions | ||||||||||||||
Debt redeemed | $ 92,900 | |||||||||||||
Long-term debt | $ 92,900 | |||||||||||||
5.25% Senior Notes, due June 2025 | ||||||||||||||
Acquisitions | ||||||||||||||
Long-term debt | $ 1,000,000 | $ 1,000,000 | ||||||||||||
Interest rate (as a percent) | 5.25% | 5.25% | 5.25% | 5.25% |
Business Consolidation and Ot43
Business Consolidation and Other Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Business consolidation and other activities | ||||||
Business consolidation and other activities | $ (151.9) | $ (9.2) | $ (138.3) | $ (17.8) | ||
Assets held for sale in connection with facilities closures | 3.3 | 3.3 | $ 11.7 | |||
Operating Segments | Metal beverage packaging, Americas and Asia | ||||||
Business consolidation and other activities | ||||||
Business consolidation and other activities | (21.2) | (0.1) | (23.8) | 1.7 | ||
Business reorganization activities in the company's metal beverage packaging, Asia, operations, and for ongoing costs | 3.3 | |||||
Compensation received for reimbursement of severance costs incurred in connection with facilities closure and relocation | $ 5 | |||||
Net gains | 1 | 1 | ||||
Charges related to facilities closure | 20.2 | 1 | 1 | |||
Charges for other insignificant activities | 1.2 | |||||
Charges for insignificant items | 1 | 0.3 | ||||
Severance, pension and other employee benefits | 19 | |||||
Charges related to a fire at company's metal beverage container facility | 2 | |||||
Operating Segments | Metal beverage packaging, Americas and Asia | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||||
Business consolidation and other activities | ||||||
Gain (loss) on sale of facilities | (1.1) | $ 0.8 | ||||
Operating Segments | Metal beverage packaging, Europe | ||||||
Business consolidation and other activities | ||||||
Business consolidation and other activities | (1.3) | (4.3) | (8.6) | (6.6) | ||
Charge incurred in connection with headcount reductions, cost-out initiatives and relocation of the company's European headquarters from Germany to Switzerland | 1.3 | 3.9 | ||||
Tax expense related to relocation of the company's European headquarters from Germany to Switzerland | 1.7 | 5 | ||||
Operating Segments | Metal beverage packaging, Europe | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||||||
Business consolidation and other activities | ||||||
Charges incurred in connection with write down of fixed assets held for sale | 4.7 | |||||
Operating Segments | Metal food & household products packaging | ||||||
Business consolidation and other activities | ||||||
Business consolidation and other activities | (0.1) | (4.5) | (1) | (11.6) | ||
Charges related to facilities closure | 3.8 | |||||
Voluntary and involuntary severance | 3.6 | |||||
Charges for other insignificant activities | 0.9 | 4.2 | ||||
Operating Segments | Metal Beverage Packaging, Europe, and Corporate | ||||||
Business consolidation and other activities | ||||||
Charges for other insignificant activities | 3.7 | 4.7 | ||||
Charge incurred in connection with headcount reductions, cost-out initiatives and relocation of the company's European headquarters from Germany to Switzerland | 0.9 | 3.2 | ||||
Tax expense related to relocation of the company's European headquarters from Germany to Switzerland | 1.9 | 6.1 | ||||
Operating Segments | Aerospace & technologies | ||||||
Business consolidation and other activities | ||||||
Business consolidation and other activities | 0.7 | |||||
Corporate and Other Costs | ||||||
Business consolidation and other activities | ||||||
Business consolidation and other activities | (129.3) | $ (0.3) | (105.6) | $ (1.3) | ||
Charges for other insignificant activities | 0.5 | |||||
Corporate and Other Costs | Rexam PLC | ||||||
Business consolidation and other activities | ||||||
Professional Services And Other Costs | 24.7 | 68.8 | ||||
Recognized Gains (Losses) of associated with its collar and option contracts | $ (104.6) | $ 36.3 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Receivables | ||
Trade accounts receivable | $ 989.5 | $ 800 |
Less allowance for doubtful accounts | (6.2) | (7) |
Net trade accounts receivable | 983.3 | 793 |
Other receivables | 114.5 | 164.1 |
Receivables, net | 1,097.8 | 957.1 |
Maximum available sale of the accounts receivables under factoring program | 605 | |
Amount of sale of receivables | $ 489.6 | $ 197.6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Inventories | ||
Raw materials and supplies | $ 441.9 | $ 479.2 |
Work-in-process and finished goods | 476.8 | 579.2 |
Less inventory reserves | (42.7) | (41.7) |
Inventories, net | $ 876 | $ 1,016.7 |
Property, Plant and Equipment46
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 5,256.6 | $ 5,256.6 | $ 5,033.2 | ||
Less accumulated depreciation | (2,709.3) | (2,709.3) | (2,602.5) | ||
Net property, plant and equipment | 2,547.3 | 2,547.3 | 2,430.7 | ||
Depreciation expense | 62.3 | $ 60.9 | 183.3 | $ 179.1 | |
Land | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 63.5 | 63.5 | 64.6 | ||
Buildings | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 984.3 | 984.3 | 973.4 | ||
Machinery and equipment | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 3,776 | 3,776 | 3,612.5 | ||
Construction-in-progress | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 432.8 | $ 432.8 | $ 382.7 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill | |
Balance at the beginning of the period | $ 2,254.5 |
Business acquisition | 35.5 |
Effects of currency exchange rates | (85.9) |
Balance at the end of the period | $ 2,204.1 |
Percentage of fair value exceeding carrying value | 20.00% |
Impairment of goodwill | $ 78.3 |
Metal beverage packaging, Americas and Asia | |
Goodwill | |
Balance at the beginning of the period | 739.5 |
Balance at the end of the period | 739.5 |
Metal beverage packaging, Europe | |
Goodwill | |
Balance at the beginning of the period | 913.9 |
Effects of currency exchange rates | (73.6) |
Balance at the end of the period | 840.3 |
Metal food & household products packaging | |
Goodwill | |
Balance at the beginning of the period | 592.5 |
Business acquisition | 35.5 |
Effects of currency exchange rates | (12.3) |
Balance at the end of the period | 615.7 |
Aerospace & technologies | |
Goodwill | |
Balance at the beginning of the period | 8.6 |
Balance at the end of the period | $ 8.6 |
Intangibles and Other Assets (D
Intangibles and Other Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Intangibles and Other Assets | |||||
Investments in affiliates | $ 33.7 | $ 33.7 | $ 33.2 | ||
Intangible assets (net of accumulated amortization) | 123.9 | 123.9 | 137.1 | ||
Accumulated amortization | 129.9 | 129.9 | 115.2 | ||
Capitalized software (net of accumulated amortization) | 75.8 | 75.8 | 62.6 | ||
Accumulated amortization | 112.4 | 112.4 | 103.8 | ||
Company and trust-owned life insurance | 142.1 | 142.1 | 168.1 | ||
Long-term derivative assets | 2.5 | 2.5 | 3.1 | ||
Deferred financing costs | 61.6 | 61.6 | 36.3 | ||
Long-term deferred tax assets | 87.1 | 87.1 | 66.5 | ||
Other | 66.3 | 66.3 | 65.4 | ||
Intangibles and Other Assets | 593 | 593 | $ 572.3 | ||
Amortization expense of intangible assets | $ 9.6 | $ 10.4 | $ 28.2 | $ 30.6 |
Debt (Details)
Debt (Details) $ in Thousands, £ in Billions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2015USD ($) | Mar. 31, 2015 | Feb. 28, 2015USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Feb. 28, 2015GBP (£) | Feb. 28, 2015USD ($) | Dec. 31, 2014USD ($) | |
Long-term debt | ||||||||
Other (including discounts), denominated in various currencies | $ (5,000) | $ 1,700 | ||||||
Total long-term debt | 2,933,800 | 3,048,800 | ||||||
Less current portion of long-term debt | (54,400) | (55,000) | ||||||
Long-term debt excluding current maturities | $ 2,879,400 | $ 2,993,800 | ||||||
Leverage ratio, maximum | 4 | |||||||
Revolving Credit Facility and Bridge Loan | ||||||||
Long-term debt | ||||||||
Fees paid to lenders | $ 27,800 | |||||||
Revolving Credit Facility and Term C Loan | ||||||||
Long-term debt | ||||||||
Redemption and refinancing charges | $ (1,700) | |||||||
6.75% Senior Notes, due September 2020 | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 6.75% | 6.75% | ||||||
Redemption price of senior notes (as a percent) | 103.375% | |||||||
Total long-term debt | $ 500,000 | |||||||
5.75% Senior Notes, due May 2021 | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 5.75% | 5.75% | ||||||
Redemption price of senior notes (as a percent) | 106.096% | |||||||
Total long-term debt | $ 500,000 | |||||||
5.75% Senior Notes, Due May 2021 And 6.75% Senior Notes, Due September 2020 | ||||||||
Long-term debt | ||||||||
Redemption and refinancing charges | $ (55,800) | |||||||
5.00% Senior Notes, due March 2022 | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 5.00% | 5.00% | ||||||
Total long-term debt | $ 750,000 | $ 750,000 | ||||||
4.00% Senior Notes, due November 2023 | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 4.00% | 4.00% | ||||||
Total long-term debt | $ 1,000,000 | $ 1,000,000 | ||||||
5.25% Senior Notes, due June 2025 | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 5.25% | 5.25% | ||||||
Total long-term debt | $ 1,000,000 | $ 1,000,000 | ||||||
Redemption and refinancing charges | (5,000) | |||||||
Term C Loan, euro denominated | ||||||||
Long-term debt | ||||||||
Total long-term debt | 92,900 | |||||||
Notes redeemed | $ 92,900 | |||||||
Latapack-Ball Notes Payable (at various rates and terms), denominated in various currencies | ||||||||
Long-term debt | ||||||||
Total long-term debt | 188,800 | 204,200 | ||||||
Bridge Facility | ||||||||
Long-term debt | ||||||||
Face amount of debt | £ | £ 3.3 | |||||||
Revolving Credit Facility | ||||||||
Long-term debt | ||||||||
Face amount of debt | $ 1,000,000 | |||||||
Maximum borrowing capacity of revolving credit facility | $ 2,250,000 | $ 3,000,000 | ||||||
Available borrowing capacity under line of credit facility | 2,200,000 | |||||||
Revolving Credit Facility | Rexam PLC | ||||||||
Long-term debt | ||||||||
Amount committed to repay certain Rexam debt obligations and settle Rexam's outstanding derivatives | 1,400,000 | |||||||
Revolving Credit Facility | Maximum | LIBOR | ||||||||
Long-term debt | ||||||||
Spread (as a percent) | 1.75% | |||||||
Revolving Credit Facility | Minimum | LIBOR | ||||||||
Long-term debt | ||||||||
Spread (as a percent) | 1.25% | |||||||
Accounts receivable securitization agreement, current | ||||||||
Long-term debt | ||||||||
Amount of credit facility outstanding and due on demand | 140,000 | 110,000 | ||||||
Accounts receivable securitization agreement, current | Maximum | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity of revolving credit facility | 140,000 | |||||||
Accounts receivable securitization agreement, current | Minimum | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity of revolving credit facility | 90,000 | |||||||
Short-term uncommitted credit facilities | ||||||||
Long-term debt | ||||||||
Amount of credit facility outstanding and due on demand | 88,500 | $ 10,100 | ||||||
Available borrowing capacity under line of credit facility | $ 760,000 |
Employee Benefit Obligations (D
Employee Benefit Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Employee Benefit Obligations | |||||
Underfunded defined benefit pension liabilities, net | $ 715.8 | $ 715.8 | $ 724.1 | ||
Less current portion and prepaid pension assets | (17.2) | (17.2) | (19.4) | ||
Long-term defined benefit pension liability | 698.6 | 698.6 | 704.7 | ||
Retiree medical and other postemployment benefits | 172.2 | 172.2 | 169 | ||
Deferred compensation plans | 260.1 | 260.1 | 272.2 | ||
Other | 28.6 | 28.6 | 32.4 | ||
Employee benefit obligations | 1,159.5 | 1,159.5 | 1,178.3 | ||
Defined Benefit Pension Plans | |||||
Employee Benefit Obligations | |||||
Net periodic benefit cost for multiemployer plans | $ 0.7 | 1 | $ 2 | ||
Total net periodic benefit cost | 27.9 | 21.6 | 74.2 | 65.8 | |
Ball-sponsored plans: | |||||
Service cost | 16.7 | 14.6 | 50.2 | 44.5 | |
Interest cost | 19 | 22.1 | 56.7 | 66.4 | |
Expected return on plan assets | (24.7) | (24.8) | (74.2) | (74.5) | |
Amortization of prior service cost | (0.4) | (0.2) | (1.1) | (0.4) | |
Recognized net actuarial loss | 12 | 9.2 | 36.3 | 27.8 | |
Curtailment and settlement losses | 5.3 | 5.3 | |||
Net periodic benefit cost for Ball-sponsored plans | 27.9 | 20.9 | 73.2 | 63.8 | |
Excluding German Plans | |||||
Ball-sponsored plans: | |||||
Contributions to pension plans | $ 83.6 | ||||
U.S. | |||||
Employee Benefit Obligations | |||||
Net periodic benefit cost for multiemployer plans | 0.7 | 1 | 2 | ||
Total net periodic benefit cost | 22.3 | 14.4 | 57.3 | 43.1 | |
Ball-sponsored plans: | |||||
Service cost | 13 | 11.5 | 39 | 34.3 | |
Interest cost | 14.4 | 15.6 | 42.9 | 46.8 | |
Expected return on plan assets | (19.8) | (20.6) | (59.4) | (61.6) | |
Amortization of prior service cost | (0.3) | (0.8) | |||
Recognized net actuarial loss | 9.7 | 7.2 | 29.3 | 21.6 | |
Curtailment and settlement losses | 5.3 | 5.3 | |||
Net periodic benefit cost for Ball-sponsored plans | 22.3 | 13.7 | 56.3 | 41.1 | |
Foreign | |||||
Employee Benefit Obligations | |||||
Total net periodic benefit cost | 5.6 | 7.2 | 16.9 | 22.7 | |
Ball-sponsored plans: | |||||
Service cost | 3.7 | 3.1 | 11.2 | 10.2 | |
Interest cost | 4.6 | 6.5 | 13.8 | 19.6 | |
Expected return on plan assets | (4.9) | (4.2) | (14.8) | (12.9) | |
Amortization of prior service cost | (0.1) | (0.2) | (0.3) | (0.4) | |
Recognized net actuarial loss | 2.3 | 2 | 7 | 6.2 | |
Net periodic benefit cost for Ball-sponsored plans | 5.6 | $ 7.2 | 16.9 | $ 22.7 | |
Germany. | |||||
Employee Benefit Obligations | |||||
Expected benefit payments to plan participants for the full year | $ 19 | 19 | |||
Ball-sponsored plans: | |||||
Contributions to pension plans | $ 13.7 |
Shareholders' Equity and Comp51
Shareholders' Equity and Comprehensive Earnings (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |
Balance at beginning of the period | $ 1,239.6 |
Balance at end of the period | 1,243.4 |
Foreign Currency Translation | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |
Balance at beginning of the period | (18.4) |
Other comprehensive earnings (loss) before reclassifications | (113.1) |
Balance at end of the period | (131.5) |
Pension and Other Postretirement Benefits (Net of Tax) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |
Balance at beginning of the period | (499.9) |
Other comprehensive earnings (loss) before reclassifications | 8.2 |
Amounts reclassified from accumulated other comprehensive earnings (loss) | 21.1 |
Balance at end of the period | (470.6) |
Effective Derivatives (Net of Tax) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |
Balance at beginning of the period | (3.8) |
Other comprehensive earnings (loss) before reclassifications | (19.2) |
Amounts reclassified from accumulated other comprehensive earnings (loss) | 5 |
Balance at end of the period | (18) |
AOCI Including Portion Attributable to Noncontrolling Interest | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |
Balance at beginning of the period | (522.1) |
Other comprehensive earnings (loss) before reclassifications | (124.1) |
Amounts reclassified from accumulated other comprehensive earnings (loss) | 26.1 |
Balance at end of the period | $ (620.1) |
Shareholders' Equity and Comp52
Shareholders' Equity and Comprehensive Earnings (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Amounts Reclassified from AOCI | ||||
Commodity contracts recorded in net sales | $ 2,097 | $ 2,238.9 | $ 6,192.4 | $ 6,537.6 |
Commodity contracts and currency exchange contracts recorded in cost of sales | (2,020.9) | (2,010.9) | (5,716.6) | (5,836.3) |
Interest rate contracts recorded in interest expense | (58.5) | (40.1) | (192.9) | (154) |
Earnings before taxes | 17.6 | 187.9 | 282.9 | 547.3 |
Tax benefit (provision) on amounts reclassified into earnings | 31 | (39.8) | (47.9) | (139.6) |
Net earnings | 50.1 | 148.4 | 238.4 | 409.6 |
Effective Derivatives (Net of Tax). | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||
Amounts Reclassified from AOCI | ||||
Earnings before taxes | (6.8) | (22.7) | (8.8) | (37.4) |
Tax benefit (provision) on amounts reclassified into earnings | 2.7 | 3.2 | 3.8 | 4.1 |
Net earnings | (4.1) | (19.5) | (5) | (33.3) |
Effective Derivatives (Net of Tax). | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Commodity contracts | ||||
Amounts Reclassified from AOCI | ||||
Commodity contracts recorded in net sales | 1.3 | (2.5) | 2.1 | (3) |
Effective Derivatives (Net of Tax). | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Commodity contract and currency exchange contracts | ||||
Amounts Reclassified from AOCI | ||||
Commodity contracts and currency exchange contracts recorded in cost of sales | (8.1) | (20.3) | (10.8) | (34.2) |
Effective Derivatives (Net of Tax). | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Interest rate swap agreements | ||||
Amounts Reclassified from AOCI | ||||
Interest rate contracts recorded in interest expense | 0.1 | (0.1) | (0.2) | |
Pension and Other Postretirement Benefits (Net of Tax). | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||
Amounts Reclassified from AOCI | ||||
Tax benefit (expense) on amounts reclassified into earnings | (4) | (3.3) | (12.3) | (9.9) |
Net earnings | (6.7) | (5.8) | (21.1) | (17.5) |
Effective Derivatives (Net of Tax) | ||||
Amounts Reclassified from AOCI | ||||
Net earnings | 5 | |||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||
Amounts Reclassified from AOCI | ||||
Prior service income (cost) | 0.6 | 0.1 | 1.6 | 0.3 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||
Amounts Reclassified from AOCI | ||||
Prior service income (cost) | 11.3 | 9.2 | 35 | 27.7 |
Accumulated Defined Benefit Plans Adjustment, Net Transition Attributable to Parent [Member] | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||
Amounts Reclassified from AOCI | ||||
Prior service income (cost) | $ (10.7) | $ (9.1) | $ (33.4) | $ (27.4) |
Stock-Based Compensation Prog53
Stock-Based Compensation Programs (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Feb. 28, 2015shares | Jan. 31, 2014shares | Sep. 30, 2015installment$ / shares | Dec. 31, 2014$ / shares | |
Stock option and SSARs | ||||
Stock-Based Compensation Programs | ||||
Number of equal installments commencing one year from the date of grant | installment | 4 | |||
Vesting period | 1 year | |||
Expiration period of options | 10 years | |||
Granted (in shares) | 1,231,865 | |||
Weighted average fair value at grant date (in dollars per share) | $ / shares | $ 14.20 | $ 9.81 | ||
Weighted average assumptions used in estimation of fair values of options | ||||
Expected dividend yield (as a percent) | 0.79% | 1.06% | ||
Expected stock price volatility (as a percent) | 22.11% | 21.41% | ||
Risk-free interest rate (as a percent) | 1.39% | 1.65% | ||
Expected life of options | 5 years 10 months 6 days | 5 years 6 months | ||
PCEQs | ||||
Stock-Based Compensation Programs | ||||
Vesting period | 3 years | |||
Granted (in shares) | 116,559 | 143,305 | ||
PCEQs | Minimum | ||||
Weighted average assumptions used in estimation of fair values of options | ||||
Vest range of participant's assigned award opportunity (as a percent) | 0.00% | 0.00% | ||
PCEQs | Maximum | ||||
Weighted average assumptions used in estimation of fair values of options | ||||
Vest range of participant's assigned award opportunity (as a percent) | 200.00% | 200.00% |
Earnings and Dividends Per Sh54
Earnings and Dividends Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings and Dividends Per Share | ||||||
Net earnings attributable to Ball Corporation | $ 44.5 | $ 147.4 | $ 225.6 | $ 394 | ||
Basic weighted average common shares | 137,337 | 138,010 | 137,409 | 139,133 | ||
Effect of dilutive securities (in shares) | 3,521 | 4,080 | 3,732 | 3,853 | ||
Weighted average shares applicable to diluted earnings per share | 140,858 | 142,090 | 141,141 | 142,986 | ||
Basic (in dollars per share) | $ 0.32 | $ 1.07 | $ 1.64 | $ 2.83 | ||
Diluted (in dollars per share) | $ 0.32 | $ 1.04 | $ 1.60 | $ 2.76 | ||
Number of outstanding options excluded from computation of diluted earnings per share | 1,200 | 0 | 1,200 | 1,200 | ||
Dividends declared (in dollars per share) | $ 0.13 | $ 0.13 | ||||
Dividends paid (in dollars per share) | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 |
Financial Instruments and Ris55
Financial Instruments and Risk Management (Details) € in Millions, item in Millions, $ in Millions, £ in Billions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Oct. 31, 2015USD ($) | Sep. 30, 2015EUR (€)itemapproach | Sep. 30, 2015GBP (£)itemapproach | Sep. 30, 2015USD ($)itemapproach | Dec. 31, 2014USD ($) | |
Financial Instruments and Risk Management | |||||||
Aggregate fair value of derivative instruments with credit-risk-related contingent features that were in a net liability position | $ 63.5 | $ 12.4 | |||||
Collateral amount posted for derivative instruments with credit-risk-related contingent features that were in a net liability position | $ 2.7 | $ 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 | approach | 2 | 2 | 2 | ||||
Notional amount of derivatives | $ 336 | ||||||
Period within which derivative will expire | 4 years | ||||||
Impact on derivative contracts included in accumulated other comprehensive earnings (loss), net of tax | 15.5 | ||||||
Net loss expected to be recognized in the consolidated statement of earnings during the next 12 months | $ 12.5 | ||||||
Commodity contracts | Derivatives Designated As Hedging Instruments | Cash Flow Hedging [Member] | |||||||
Financial Instruments and Risk Management | |||||||
Notional amount of derivatives | 130 | ||||||
Interest rate swap agreements | |||||||
Financial Instruments and Risk Management | |||||||
Notional amount of derivatives | 146 | ||||||
Period within which derivative will expire | 4 years | ||||||
Interest rate swap agreements | Rexam PLC | Income Statement Interest Expense Other | |||||||
Financial Instruments and Risk Management | |||||||
Gain included in debt refinancing and other costs | $ 10 | ||||||
Interest rate swap agreements | Rexam PLC | Derivatives Not Designated As Hedging Instruments | |||||||
Financial Instruments and Risk Management | |||||||
Notional amount of derivatives | $ 100 | € 1,750 | 250 | ||||
Period within which derivative will expire | 5 years | ||||||
Interest rate swaption | Rexam PLC | Derivatives Not Designated As Hedging Instruments | |||||||
Financial Instruments and Risk Management | |||||||
Notional amount of derivatives | € | € 750 | ||||||
Currency Exchange Rate Risk | |||||||
Financial Instruments and Risk Management | |||||||
Notional amount of derivatives | 449 | ||||||
Impact on derivative contracts included in accumulated other comprehensive earnings (loss), net of tax | (2.2) | ||||||
Net loss expected to be recognized in the consolidated statement of earnings during the next 12 months | $ 2.3 | ||||||
Currency Exchange Rate Risk | Rexam PLC | |||||||
Financial Instruments and Risk Management | |||||||
Notional amount of derivatives | £ 2.3 | $ 3,400 | |||||
Recognized Gains (Losses) of associated with its collar and option contracts | $ (104.6) | 36.3 | |||||
Equity contracts | |||||||
Financial Instruments and Risk Management | |||||||
Notional value of the swap (in shares) | item | 1 | 1 | 1 | ||||
Fair value of the swaps | $ 4.8 |
Financial Instruments and Ris56
Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value Measurements | ||
Total current derivative contracts, assets | $ 23.6 | $ 9.4 |
Long-term derivative assets | 2.5 | 3.1 |
Total current derivative contracts, liabilities | 57.1 | 12.3 |
Total noncurrent derivative contracts, liabilities | $ 18.9 | 7.6 |
Discount factor | 12 month LIBOR | |
Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | $ 10.4 | 5.1 |
Long-term derivative assets | 1 | 2.7 |
Total current derivative contracts, liabilities | 20.5 | 8.5 |
Total noncurrent derivative contracts, liabilities | 9.3 | 7.3 |
Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 13.2 | 4.3 |
Total current derivative contracts, liabilities | 31.4 | 2.9 |
Interest rate and other contracts | ||
Fair Value Measurements | ||
Long-term derivative assets | 1.5 | 0.4 |
Total current derivative contracts, liabilities | 5.2 | 0.9 |
Total noncurrent derivative contracts, liabilities | 9.6 | 0.3 |
Derivatives Designated As Hedging Instruments | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 5.8 | 4.6 |
Long-term derivative assets | 0.2 | 2.6 |
Total current derivative contracts, liabilities | 16.7 | 9 |
Total noncurrent derivative contracts, liabilities | 8.2 | 7.1 |
Derivatives Designated As Hedging Instruments | Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 5.7 | 3.8 |
Long-term derivative assets | 0.2 | 2.2 |
Total current derivative contracts, liabilities | 14 | 6.9 |
Total noncurrent derivative contracts, liabilities | 7.8 | 6.8 |
Derivatives Designated As Hedging Instruments | Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 0.1 | 0.8 |
Total current derivative contracts, liabilities | 2.2 | 1.6 |
Derivatives Designated As Hedging Instruments | Interest rate and other contracts | ||
Fair Value Measurements | ||
Long-term derivative assets | 0.4 | |
Total current derivative contracts, liabilities | 0.5 | 0.5 |
Total noncurrent derivative contracts, liabilities | 0.4 | 0.3 |
Derivatives Not Designated As Hedging Instruments | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 17.8 | 4.8 |
Long-term derivative assets | 2.3 | 0.5 |
Total current derivative contracts, liabilities | 40.4 | 3.3 |
Total noncurrent derivative contracts, liabilities | 10.7 | 0.5 |
Derivatives Not Designated As Hedging Instruments | Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 4.7 | 1.3 |
Long-term derivative assets | 0.8 | 0.5 |
Total current derivative contracts, liabilities | 6.5 | 1.6 |
Total noncurrent derivative contracts, liabilities | 1.5 | 0.5 |
Derivatives Not Designated As Hedging Instruments | Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 13.1 | 3.5 |
Total current derivative contracts, liabilities | 29.2 | 1.3 |
Derivatives Not Designated As Hedging Instruments | Interest rate and other contracts | ||
Fair Value Measurements | ||
Long-term derivative assets | 1.5 | |
Total current derivative contracts, liabilities | 4.7 | $ 0.4 |
Total noncurrent derivative contracts, liabilities | $ 9.2 |
Financial Instruments and Ris57
Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | $ (6.8) | $ (22.7) | $ (8.8) | $ (37.4) |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (111.1) | (13.3) | (58.8) | (17.9) |
Amounts reclassified into earnings: | ||||
Commodity contracts | 7.1 | 22.7 | 8.5 | 37.4 |
Interest rate contracts | (0.1) | 0.1 | 0.2 | |
Currency exchange contracts | (0.3) | 0.1 | 0.2 | (0.2) |
Change in fair value of cash flow hedges: | ||||
Commodity contracts | (11.9) | 1.4 | (22.9) | 8.1 |
Interest rate contracts | (0.3) | 0.2 | (0.6) | (0.2) |
Currency exchange contracts | 4.1 | (0.7) | (1.9) | (1.9) |
Foreign Currency and tax impacts | (1) | (2) | 2.3 | (5.3) |
Changes in accumulated other comprehensive earnings (loss) for effective derivatives | (2.3) | 21.6 | (14.3) | 38.1 |
Commodity contracts | Net sales | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | 1.3 | (2.5) | 2.1 | (3) |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 0.2 | 3.2 | 0.9 | 3.4 |
Commodity contracts | Cost of sales | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | (8.4) | (20.2) | (10.6) | (34.4) |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (2.1) | 1.5 | (4.8) | 2.1 |
Interest rate contracts | Interest expense. | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | 0.1 | (0.1) | (0.2) | |
Interest rate contracts | Debt refinancing and other costs | ||||
Impact on Earnings from Derivative Instruments | ||||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (15) | (10) | ||
Foreign currency contracts | Cost of sales | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | 0.3 | (0.2) | 0.2 | |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 1.6 | (0.7) | 2.2 | (0.2) |
Foreign currency contracts | Selling, general and administrative | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | (0.1) | |||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 17 | (13.7) | (4.4) | (19.3) |
Foreign currency contracts | Business consolidation and other activities | ||||
Impact on Earnings from Derivative Instruments | ||||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (104.6) | (36.3) | ||
Equity contracts | Selling, general and administrative | ||||
Impact on Earnings from Derivative Instruments | ||||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | $ (8.2) | $ (3.6) | $ (6.4) | $ (3.9) |
Contingencies (Details)
Contingencies (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Nov. 30, 2012company | Sep. 30, 2014USD ($)company | Sep. 30, 2015USD ($) | Dec. 31, 1992defendant | |
Environmental litigation with respect to Lowry Landfill site | ||||
Contingencies | ||||
Approximate number of other companies named in a lawsuit with respect to Lowry Landfill | defendant | 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 additional potentially responsible parties (PRPs) | company | 20 | |||
Expected future remediation costs | $ 342 | |||
Site cleanup costs | $ 100 | |||
Number of companies whose data is under review | company | 30 | |||
Period over which data is reviewed | 2 years | |||
Environmental litigation with respect to Lower Duwamish site | Minimum | ||||
Contingencies | ||||
Number of potentially responsible parties (PRPs) | company | 50 | |||
Number of potentially responsible parties (PRP) groups whose data is under review | company | 2 |
Subsidiary Guarantees of Debt59
Subsidiary Guarantees of Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Subsidiary Guarantees of Debt | ||||
Ownership interest in guarantor subsidiaries (as a percent) | 100.00% | |||
Subsidiary Guarantees of Debt | ||||
Net sales | $ 2,097 | $ 2,238.9 | $ 6,192.4 | $ 6,537.6 |
Costs and expenses | ||||
Cost of sales (excluding depreciation and amortization) | (1,690.3) | (1,807.3) | (5,026.3) | (5,266.6) |
Depreciation and amortization | (71.9) | (71.3) | (211.5) | (209.7) |
Selling, general and administrative | (106.8) | (123.1) | (340.5) | (342.2) |
Business consolidation and other activities | (151.9) | (9.2) | (138.3) | (17.8) |
Total costs and expenses | (2,020.9) | (2,010.9) | (5,716.6) | (5,836.3) |
Earnings before interest and taxes | 76.1 | 228 | 475.8 | 701.3 |
Interest expense | (37.5) | (40.1) | (107) | (120.9) |
Debt refinancing and other costs | (21) | (85.9) | (33.1) | |
Total interest expense | (58.5) | (40.1) | (192.9) | (154) |
Earnings before taxes | 17.6 | 187.9 | 282.9 | 547.3 |
Tax (provision) benefit | 31 | (39.8) | (47.9) | (139.6) |
Equity in results of affiliates, net of tax | 1.5 | 0.3 | 3.4 | 1.9 |
Net earnings | 50.1 | 148.4 | 238.4 | 409.6 |
Less net earnings attributable to noncontrolling interests | (5.6) | (1) | (12.8) | (15.6) |
Net earnings attributable to Ball Corporation | 44.5 | 147.4 | 225.6 | 394 |
Comprehensive earnings (loss) attributable to Ball Corporation | 28.1 | 75 | 127.6 | 318.4 |
Eliminating Adjustments | ||||
Subsidiary Guarantees of Debt | ||||
Net sales | (13.1) | (2.2) | (35.1) | (10.2) |
Costs and expenses | ||||
Cost of sales (excluding depreciation and amortization) | 13.1 | 2.2 | 35.1 | 10.2 |
Equity in results of subsidiaries | (192.2) | (206.9) | (495.7) | (657.2) |
Total costs and expenses | (179.1) | (204.7) | (460.6) | (647) |
Earnings before interest and taxes | (192.2) | (206.9) | (495.7) | (657.2) |
Earnings before taxes | (192.2) | (206.9) | (495.7) | (657.2) |
Net earnings | (192.2) | (206.9) | (495.7) | (657.2) |
Net earnings attributable to Ball Corporation | (192.2) | (206.9) | (495.7) | (657.2) |
Comprehensive earnings (loss) attributable to Ball Corporation | (158) | (60.4) | (290.9) | (491.7) |
Ball Corporation | ||||
Costs and expenses | ||||
Cost of sales (excluding depreciation and amortization) | 0.1 | (0.1) | ||
Depreciation and amortization | (1.5) | (1.6) | (4.1) | (4.6) |
Selling, general and administrative | (14.1) | (22.6) | (60.4) | (57.3) |
Business consolidation and other activities | (129.2) | (2.8) | (105.6) | (3.8) |
Equity in results of subsidiaries | 128.8 | 137.2 | 340.5 | 426.6 |
Intercompany | 51.5 | 52.4 | 153.5 | 151.6 |
Total costs and expenses | 35.5 | 162.6 | 324 | 512.4 |
Earnings before interest and taxes | 35.5 | 162.6 | 324 | 512.4 |
Interest expense | (36.6) | (102.7) | (112.6) | |
Debt refinancing and other costs | (21) | (84) | (33.1) | |
Total interest expense | (57.6) | (37.1) | (186.7) | (145.7) |
Earnings before taxes | (22.1) | 125.5 | 137.3 | 366.7 |
Tax (provision) benefit | 66.6 | 21.9 | 88.3 | 27.3 |
Net earnings | 44.5 | 147.4 | 225.6 | 394 |
Net earnings attributable to Ball Corporation | 44.5 | 147.4 | 225.6 | 394 |
Comprehensive earnings (loss) attributable to Ball Corporation | 28.1 | 75 | 127.6 | 318.4 |
Guarantor Subsidiaries | ||||
Subsidiary Guarantees of Debt | ||||
Net sales | 1,264.4 | 1,363 | 3,729 | 3,885.4 |
Costs and expenses | ||||
Cost of sales (excluding depreciation and amortization) | (1,039.4) | (1,124.5) | (3,085.6) | (3,209.4) |
Depreciation and amortization | (33.8) | (33.2) | (97.7) | (94.9) |
Selling, general and administrative | (44.7) | (45.9) | (129.8) | (134.2) |
Business consolidation and other activities | (20) | (3.1) | (20.7) | (14) |
Equity in results of subsidiaries | 63.4 | 69.7 | 155.2 | 230.6 |
Intercompany | (44.8) | (45.6) | (130.6) | (131.3) |
Total costs and expenses | (1,119.3) | (1,182.6) | (3,309.2) | (3,353.2) |
Earnings before interest and taxes | 145.1 | 180.4 | 419.8 | 532.2 |
Interest expense | 1.5 | 3.9 | 2 | |
Total interest expense | 1.5 | 0.9 | 3.9 | 2 |
Earnings before taxes | 146.6 | 181.3 | 423.7 | 534.2 |
Tax (provision) benefit | (19.9) | (45.7) | (88.2) | (104.1) |
Equity in results of affiliates, net of tax | 0.6 | 0.5 | 1.5 | 1.4 |
Net earnings | 127.3 | 136.1 | 337 | 431.5 |
Net earnings attributable to Ball Corporation | 127.3 | 136.1 | 337 | 431.5 |
Comprehensive earnings (loss) attributable to Ball Corporation | 109.9 | 62.2 | 235.8 | 352.5 |
Non-Guarantor Subsidiaries | ||||
Subsidiary Guarantees of Debt | ||||
Net sales | 845.7 | 878.1 | 2,498.5 | 2,662.4 |
Costs and expenses | ||||
Cost of sales (excluding depreciation and amortization) | (664) | (685) | (1,975.9) | (2,067.3) |
Depreciation and amortization | (36.6) | (36.5) | (109.7) | (110.2) |
Selling, general and administrative | (48) | (54.6) | (150.3) | (150.7) |
Business consolidation and other activities | (2.7) | (3.3) | (12) | |
Intercompany | (6.7) | (6.8) | (22.9) | (20.3) |
Total costs and expenses | (758) | (786.2) | (2,270.8) | (2,348.5) |
Earnings before interest and taxes | 87.7 | 91.9 | 227.7 | 313.9 |
Interest expense | (2.4) | (8.2) | (10.3) | |
Debt refinancing and other costs | (1.9) | |||
Total interest expense | (2.4) | (3.9) | (10.1) | (10.3) |
Earnings before taxes | 85.3 | 88 | 217.6 | 303.6 |
Tax (provision) benefit | (15.7) | (16) | (48) | (62.8) |
Equity in results of affiliates, net of tax | 0.9 | (0.2) | 1.9 | 0.5 |
Net earnings | 70.5 | 71.8 | 171.5 | 241.3 |
Less net earnings attributable to noncontrolling interests | (5.6) | (1) | (12.8) | (15.6) |
Net earnings attributable to Ball Corporation | 64.9 | 70.8 | 158.7 | 225.7 |
Comprehensive earnings (loss) attributable to Ball Corporation | $ 48.1 | $ (1.8) | $ 55.1 | $ 139.2 |
Subsidiary Guarantees of Debt60
Subsidiary Guarantees of Debt (Details 2) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Current assets | ||||
Cash and cash equivalents | $ 244.4 | $ 191.4 | $ 189.5 | $ 416 |
Receivables, net | 1,097.8 | 957.1 | ||
Inventories, net | 876 | 1,016.7 | ||
Deferred taxes and other current assets | 164.4 | 148.3 | ||
Total current assets | 2,382.6 | 2,313.5 | ||
Noncurrent assets | ||||
Property, plant and equipment, net | 2,547.3 | 2,430.7 | ||
Goodwill | 2,204.1 | 2,254.5 | ||
Intangibles and other assets, net | 593 | 572.3 | ||
Total assets | 7,727 | 7,571 | ||
Current liabilities | ||||
Short-term debt and current portion of long-term debt | 282.9 | 175.1 | ||
Accounts payable | 1,451.4 | 1,340 | ||
Accrued employee costs | 213.3 | 269.9 | ||
Other current liabilities | 332 | 221.8 | ||
Total current liabilities | 2,279.6 | 2,006.8 | ||
Noncurrent liabilities | ||||
Long-term debt | 2,879.4 | 2,993.8 | ||
Employee benefit obligations | 1,159.5 | 1,178.3 | ||
Deferred taxes and other liabilities | 165.1 | 152.5 | ||
Total liabilities | 6,483.6 | 6,331.4 | ||
Common stock | 1,171.3 | 1,131.3 | ||
Retained earnings | 4,519.6 | 4,346.9 | ||
Accumulated other comprehensive earnings (loss) | (620.1) | (522.1) | ||
Treasury stock, at cost | (4,037.1) | (3,923) | ||
Total Ball Corporation shareholders' equity | 1,033.7 | 1,033.1 | ||
Noncontrolling interests | 209.7 | 206.5 | ||
Total shareholders' equity | 1,243.4 | 1,239.6 | ||
Total liabilities and shareholders' equity | 7,727 | 7,571 | ||
Eliminating Adjustments | ||||
Current assets | ||||
Intercompany receivables | (268.4) | (198.2) | ||
Total current assets | (268.4) | (198.2) | ||
Noncurrent assets | ||||
Investment in subsidiaries | (5,734) | (5,443.5) | ||
Total assets | (6,002.4) | (5,641.7) | ||
Current liabilities | ||||
Intercompany payables | (268.2) | (198.2) | ||
Total current liabilities | (268.2) | (198.2) | ||
Noncurrent liabilities | ||||
Total liabilities | (268.2) | (198.2) | ||
Common stock | (1,385.9) | (2,827.5) | ||
Preferred stock | (4.8) | (4.8) | ||
Retained earnings | (5,166.4) | (3,229.3) | ||
Accumulated other comprehensive earnings (loss) | 822.9 | 618.1 | ||
Total Ball Corporation shareholders' equity | (5,734.2) | (5,443.5) | ||
Total shareholders' equity | (5,734.2) | (5,443.5) | ||
Total liabilities and shareholders' equity | (6,002.4) | (5,641.7) | ||
Ball Corporation | ||||
Current assets | ||||
Cash and cash equivalents | 4.3 | 1.5 | 5.4 | 218.6 |
Receivables, net | 13.3 | 43.7 | ||
Intercompany receivables | 158.2 | 94 | ||
Deferred taxes and other current assets | 43.1 | 3.1 | ||
Total current assets | 218.9 | 142.3 | ||
Noncurrent assets | ||||
Property, plant and equipment, net | 13.8 | 15.1 | ||
Investment in subsidiaries | 3,400.6 | 3,152.7 | ||
Intangibles and other assets, net | 259.4 | 232.4 | ||
Total assets | 3,892.7 | 3,542.5 | ||
Current liabilities | ||||
Short-term debt and current portion of long-term debt | 23.7 | 1.9 | ||
Accounts payable | 11.2 | 7.1 | ||
Intercompany payables | 99.5 | 99.7 | ||
Accrued employee costs | 24.3 | 22.3 | ||
Other current liabilities | 135.7 | 51.6 | ||
Total current liabilities | 294.4 | 182.6 | ||
Noncurrent liabilities | ||||
Long-term debt | 2,742.9 | 2,750 | ||
Employee benefit obligations | 315.4 | 329.4 | ||
Intercompany Long Term Notes | (405.3) | (646.4) | ||
Deferred taxes and other liabilities | (88.4) | (106.2) | ||
Total liabilities | 2,859 | 2,509.4 | ||
Common stock | 1,171.3 | 1,131.3 | ||
Retained earnings | 4,519.6 | 4,346.9 | ||
Accumulated other comprehensive earnings (loss) | (620.1) | (522.1) | ||
Treasury stock, at cost | (4,037.1) | (3,923) | ||
Total Ball Corporation shareholders' equity | 1,033.7 | 1,033.1 | ||
Total shareholders' equity | 1,033.7 | 1,033.1 | ||
Total liabilities and shareholders' equity | 3,892.7 | 3,542.5 | ||
Guarantor Subsidiaries | ||||
Current assets | ||||
Cash and cash equivalents | 0.1 | 0.4 | 0.4 | 0.3 |
Receivables, net | 255.6 | 241.3 | ||
Intercompany receivables | 108.7 | 99.9 | ||
Inventories, net | 502.7 | 575 | ||
Deferred taxes and other current assets | 77.7 | 75.1 | ||
Total current assets | 944.8 | 991.7 | ||
Noncurrent assets | ||||
Property, plant and equipment, net | 1,006.4 | 968 | ||
Investment in subsidiaries | 2,254.8 | 2,212.2 | ||
Goodwill | 966.5 | 931 | ||
Intangibles and other assets, net | 100.5 | 93.5 | ||
Total assets | 5,273 | 5,196.4 | ||
Current liabilities | ||||
Short-term debt and current portion of long-term debt | 0.2 | 7.6 | ||
Accounts payable | 796.1 | 732.5 | ||
Intercompany payables | (0.1) | 1.5 | ||
Accrued employee costs | 108.2 | 155.6 | ||
Other current liabilities | 71.9 | 38 | ||
Total current liabilities | 976.3 | 935.2 | ||
Noncurrent liabilities | ||||
Long-term debt | 0.2 | 0.2 | ||
Employee benefit obligations | 466.1 | 432.7 | ||
Intercompany Long Term Notes | 218.7 | 463.1 | ||
Deferred taxes and other liabilities | 149.3 | 138.7 | ||
Total liabilities | 1,810.6 | 1,969.9 | ||
Common stock | 852.2 | 2,293.5 | ||
Retained earnings | 3,167.8 | 1,389.4 | ||
Accumulated other comprehensive earnings (loss) | (557.6) | (456.4) | ||
Total Ball Corporation shareholders' equity | 3,462.4 | 3,226.5 | ||
Total shareholders' equity | 3,462.4 | 3,226.5 | ||
Total liabilities and shareholders' equity | 5,273 | 5,196.4 | ||
Non-Guarantor Subsidiaries | ||||
Current assets | ||||
Cash and cash equivalents | 240 | 189.5 | $ 183.7 | $ 197.1 |
Receivables, net | 828.9 | 672.1 | ||
Intercompany receivables | 1.5 | 4.3 | ||
Inventories, net | 373.3 | 441.7 | ||
Deferred taxes and other current assets | 43.6 | 70.1 | ||
Total current assets | 1,487.3 | 1,377.7 | ||
Noncurrent assets | ||||
Property, plant and equipment, net | 1,527.1 | 1,447.6 | ||
Investment in subsidiaries | 78.6 | 78.6 | ||
Goodwill | 1,237.6 | 1,323.5 | ||
Intangibles and other assets, net | 233.1 | 246.4 | ||
Total assets | 4,563.7 | 4,473.8 | ||
Current liabilities | ||||
Short-term debt and current portion of long-term debt | 259 | 165.6 | ||
Accounts payable | 644.1 | 600.4 | ||
Intercompany payables | 168.8 | 97 | ||
Accrued employee costs | 80.8 | 92 | ||
Other current liabilities | 124.4 | 132.2 | ||
Total current liabilities | 1,277.1 | 1,087.2 | ||
Noncurrent liabilities | ||||
Long-term debt | 136.3 | 243.6 | ||
Employee benefit obligations | 378 | 416.2 | ||
Intercompany Long Term Notes | 186.6 | 183.3 | ||
Deferred taxes and other liabilities | 104.2 | 120 | ||
Total liabilities | 2,082.2 | 2,050.3 | ||
Common stock | 533.7 | 534 | ||
Preferred stock | 4.8 | 4.8 | ||
Retained earnings | 1,998.6 | 1,839.9 | ||
Accumulated other comprehensive earnings (loss) | (265.3) | (161.7) | ||
Total Ball Corporation shareholders' equity | 2,271.8 | 2,217 | ||
Noncontrolling interests | 209.7 | 206.5 | ||
Total shareholders' equity | 2,481.5 | 2,423.5 | ||
Total liabilities and shareholders' equity | $ 4,563.7 | $ 4,473.8 |
Subsidiary Guarantees of Debt61
Subsidiary Guarantees of Debt (Details 3) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Subsidiary Guarantees of Debt | ||
Cash provided by (used in) operating activities | $ 597 | $ 650 |
Cash flows from investing activities | ||
Capital expenditures | (356.8) | (250) |
Business acquisition | (29.1) | |
Other, net | 18.3 | 11.1 |
Cash provided by (used in) investing activities | (367.6) | (238.9) |
Cash flows from financing activities | ||
Long-term borrowings | 2,315 | 396.9 |
Repayments of long-term borrowings | (2,408.4) | (874.3) |
Net change in short-term borrowings | 111 | 199 |
Proceeds from issuances of common stock | 26.3 | 27.7 |
Acquisitions of treasury stock | (135.5) | (335.5) |
Common dividends | (54) | (54.8) |
Other, net | (40.2) | 7.7 |
Cash provided by (used in) financing activities | (185.8) | (633.3) |
Effect of exchange rate changes on cash | 9.4 | (4.3) |
Change in cash and cash equivalents | 53 | (226.5) |
Cash and cash equivalents - beginning of period | 191.4 | 416 |
Cash and cash equivalents - end of period | 244.4 | 189.5 |
Ball Corporation | ||
Subsidiary Guarantees of Debt | ||
Cash provided by (used in) operating activities | 6.6 | (14.7) |
Cash flows from investing activities | ||
Capital expenditures | (5.4) | (8.4) |
Other, net | 5.1 | 4.2 |
Cash provided by (used in) investing activities | (0.3) | (4.2) |
Cash flows from financing activities | ||
Long-term borrowings | 2,300 | 375 |
Repayments of long-term borrowings | (2,300.5) | (690.4) |
Net change in short-term borrowings | 21.1 | 22.4 |
Proceeds from issuances of common stock | 26.3 | 27.7 |
Acquisitions of treasury stock | (135.5) | (335.5) |
Common dividends | (54) | (54.8) |
Intercompany | 176.3 | 452.1 |
Other, net | (30.1) | 13.9 |
Cash provided by (used in) financing activities | 3.6 | (189.6) |
Effect of exchange rate changes on cash | (7.1) | (4.7) |
Change in cash and cash equivalents | 2.8 | (213.2) |
Cash and cash equivalents - beginning of period | 1.5 | 218.6 |
Cash and cash equivalents - end of period | 4.3 | 5.4 |
Guarantor Subsidiaries | ||
Subsidiary Guarantees of Debt | ||
Cash provided by (used in) operating activities | 419.5 | 301.1 |
Cash flows from investing activities | ||
Capital expenditures | (140.8) | (120.1) |
Business acquisition | (29.1) | |
Other, net | 12.7 | 1.6 |
Cash provided by (used in) investing activities | (157.2) | (118.5) |
Cash flows from financing activities | ||
Repayments of long-term borrowings | (0.3) | |
Net change in short-term borrowings | (7.4) | 2.6 |
Intercompany | (254.3) | (184.8) |
Other, net | (0.9) | |
Cash provided by (used in) financing activities | (262.6) | (182.5) |
Change in cash and cash equivalents | (0.3) | 0.1 |
Cash and cash equivalents - beginning of period | 0.4 | 0.3 |
Cash and cash equivalents - end of period | 0.1 | 0.4 |
Non-Guarantor Subsidiaries | ||
Subsidiary Guarantees of Debt | ||
Cash provided by (used in) operating activities | 170.9 | 363.6 |
Cash flows from investing activities | ||
Capital expenditures | (210.6) | (121.5) |
Other, net | 0.5 | 5.3 |
Cash provided by (used in) investing activities | (210.1) | (116.2) |
Cash flows from financing activities | ||
Long-term borrowings | 15 | 21.9 |
Repayments of long-term borrowings | (107.9) | (183.6) |
Net change in short-term borrowings | 97.3 | 174 |
Intercompany | 78 | (267.3) |
Other, net | (9.2) | (6.2) |
Cash provided by (used in) financing activities | 73.2 | (261.2) |
Effect of exchange rate changes on cash | 16.5 | 0.4 |
Change in cash and cash equivalents | 50.5 | (13.4) |
Cash and cash equivalents - beginning of period | 189.5 | 197.1 |
Cash and cash equivalents - end of period | $ 240 | $ 183.7 |
Subsequent Event (Details)
Subsequent Event (Details) - Latapack-Ball Embalagens Ltda. (Latapack-Ball) shares in Millions | Oct. 27, 2015shares |
Subsequent Event | |
Treasury stock exchanged (in shares) | 6 |
Subsequent Event. | Forecast | |
Subsequent Event | |
Treasury stock exchanged (in shares) | 6 |