Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | BALL CORP | ||
Entity Central Index Key | 9,389 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 9.7 | ||
Entity Common Stock, Shares Outstanding | 141,713,478 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Earnings | |||
Net sales | $ 7,997 | $ 8,570 | $ 8,468.1 |
Costs and expenses | |||
Cost of sales (excluding depreciation and amortization) | (6,460.3) | (6,903.5) | (6,875.4) |
Depreciation and amortization | (285.5) | (280.9) | (299.9) |
Selling, general and administrative | (451.3) | (466.5) | (418.6) |
Business consolidation and other activities | (194.7) | (80.5) | (78.8) |
Total costs and expenses | (7,391.8) | (7,731.4) | (7,672.7) |
Earnings before interest and taxes | 605.2 | 838.6 | 795.4 |
Interest expense | (143.2) | (159.9) | (183.8) |
Debt refinancing and other costs | (116.5) | (33.1) | (28) |
Total interest expense | (259.7) | (193) | (211.8) |
Earnings before taxes | 345.5 | 645.6 | 583.6 |
Tax (provision) benefit | (47) | (149.9) | (149.6) |
Equity in results of affiliates, net of tax | 4.4 | 2.3 | 0.6 |
Net earnings from continuing operations | 302.9 | 498 | 434.6 |
Discontinued operations, net of tax | 0.4 | ||
Net earnings | 302.9 | 498 | 435 |
Less net earnings attributable to noncontrolling interests | (22) | (28) | (28.2) |
Net earnings attributable to Ball Corporation | 280.9 | 470 | 406.8 |
Amounts attributable to Ball Corporation: | |||
Continuing operations | 280.9 | 470 | 406.4 |
Discontinued operations | 0.4 | ||
Net earnings | $ 280.9 | $ 470 | $ 406.8 |
Earnings per share: | |||
Basic - continuing operations (in dollars per share) | $ 2.05 | $ 3.39 | $ 2.79 |
Total basic earnings per share (in dollars per share) | 2.05 | 3.39 | 2.79 |
Diluted - continuing operations (in dollars per share) | 1.99 | 3.30 | 2.73 |
Total diluted earnings per share (in dollars per share) | $ 1.99 | $ 3.30 | $ 2.73 |
Weighted average shares outstanding (000s): | |||
Basic (in shares) | 137,300 | 138,508 | 145,943 |
Diluted (in shares) | 140,984 | 142,430 | 149,223 |
Cash dividends declared and paid, per share (in dollars per share) | $ 0.52 | $ 0.52 | $ 0.52 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Comprehensive Earnings | |||
Net earnings | $ 302.9 | $ 498 | $ 435 |
Other comprehensive earnings: | |||
Foreign currency translation adjustment | (165.6) | (199.6) | 62.4 |
Pension and other postretirement benefits | 77.7 | (177.5) | 145.3 |
Effective financial derivatives | (9) | 31 | (32.2) |
Total other comprehensive earnings (loss) | (96.9) | (346.1) | 175.5 |
Income tax (provision) benefit | (21.3) | 73.4 | (63.1) |
Total other comprehensive earnings (loss), net of tax | (118.2) | (272.7) | 112.4 |
Total comprehensive earnings | 184.7 | 225.3 | 547.4 |
Less comprehensive earnings attributable to noncontrolling interests | (21.6) | (27.4) | (28.4) |
Comprehensive earnings attributable to Ball Corporation | $ 163.1 | $ 197.9 | $ 519 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets | ||||
Cash and cash equivalents | $ 224 | $ 191.4 | $ 416 | $ 174.1 |
Receivables, net | 885.4 | 957.1 | ||
Inventories, net | 898.4 | 1,016.7 | ||
Deferred taxes and other current assets | 176.2 | 148.3 | ||
Total current assets | 2,184 | 2,313.5 | ||
Noncurrent assets | ||||
Property, plant and equipment, net | 2,685.9 | 2,430.7 | ||
Goodwill | 2,176.5 | 2,254.5 | 2,399.7 | |
Restricted cash | 2,154.4 | |||
Intangibles and other assets, net | 576.2 | 572.3 | ||
Total assets | 9,777 | 7,571 | ||
Current liabilities | ||||
Short-term debt and current portion of long-term debt | 77.3 | 175.1 | ||
Accounts payable | 1,500.8 | 1,340 | ||
Accrued employee costs | 229.4 | 269.9 | ||
Other current liabilities | 334.1 | 221.8 | ||
Total current liabilities | 2,141.6 | 2,006.8 | ||
Noncurrent liabilities | ||||
Long-term debt | 5,054.2 | 2,993.8 | ||
Employee benefit obligations | 1,147.2 | 1,178.3 | ||
Deferred taxes and other liabilities | 172.7 | 152.5 | ||
Total liabilities | 8,515.7 | 6,331.4 | ||
Shareholders' equity | ||||
Common stock (332,648,592 shares issued - 2015; 331,618,306 shares issued - 2014) | 961.7 | 1,131.3 | ||
Retained earnings | 4,557.5 | 4,346.9 | ||
Accumulated other comprehensive earnings (loss) | (639.9) | (522.1) | ||
Treasury stock, at cost (190,359,349 shares - 2015; 194,652,028 shares - 2014) | (3,628) | (3,923) | ||
Total Ball Corporation shareholders' equity | 1,251.3 | 1,033.1 | ||
Noncontrolling interests | 10 | 206.5 | ||
Total shareholders' equity | 1,261.3 | 1,239.6 | $ 1,416 | $ 1,314.2 |
Total liabilities and shareholders' equity | $ 9,777 | $ 7,571 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, shares issued | 332,648,592 | 331,618,306 |
Treasury stock, shares | 190,359,349 | 194,652,028 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities | |||
Net earnings | $ 302.9 | $ 498 | $ 435 |
Discontinued operations, net of tax | (0.4) | ||
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | |||
Depreciation and amortization | 285.5 | 280.9 | 299.9 |
Business consolidation and other activities | 194.7 | 80.5 | 78.8 |
Deferred tax provision (benefit) | (61.8) | 11.9 | (1.6) |
Other, net | 145.2 | (26.7) | (34.1) |
Working capital changes, excluding effects of acquisitions: | |||
Receivables | 34.8 | (152.3) | 80.2 |
Inventories | 96.9 | (23.8) | 21.4 |
Other current assets | 9.9 | (20.6) | 4.3 |
Accounts payable | 124.6 | 355.3 | 50.9 |
Accrued employee costs | (36) | 40.1 | (36) |
Other current liabilities | (106.6) | (32.1) | (55) |
Other, net | 16.6 | 1.3 | (2.1) |
Cash provided by (used in) continuing operating activities | 1,006.7 | 1,012.5 | 841.3 |
Cash provided by (used in) discontinued operating activities | (2.3) | ||
Total cash provided by (used in) operating activities | 1,006.7 | 1,012.5 | 839 |
Cash Flows from Investing Activities | |||
Capital expenditures | (527.9) | (390.8) | (378.3) |
Business acquisitions | (29.1) | (14.2) | |
(Increase) decrease in restricted cash | (2,182.7) | ||
Other, net | 19 | (0.6) | 13.4 |
Cash provided by (used in) investing activities | (2,720.7) | (391.4) | (379.1) |
Cash Flows from Financing Activities | |||
Long-term borrowings | 4,524.2 | 411.9 | 1,643.1 |
Repayments of long-term borrowings | (2,429.8) | (897.8) | (1,294.9) |
Net change in short-term borrowings | (93.2) | 68.2 | (57.6) |
Proceeds from issuances of common stock | 36 | 37.2 | 32.9 |
Acquisitions of treasury stock | (135.5) | (397.3) | (431.7) |
Common dividends | (71.8) | (72.7) | (75.2) |
Other, net | (92.8) | 5.2 | (20.6) |
Cash provided by (used in) financing activities | 1,737.1 | (845.3) | (204) |
Effect of exchange rate changes on cash | 9.5 | (0.4) | (14) |
Change in cash and cash equivalents | 32.6 | (224.6) | 241.9 |
Cash and cash equivalents - beginning of year | 191.4 | 416 | 174.1 |
Cash and cash equivalents - end of year | $ 224 | $ 191.4 | $ 416 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Common Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total |
Balance at beginning at Dec. 31, 2012 | $ 1,026.3 | $ (3,140.1) | $ 3,614.7 | $ (362.1) | $ 175.4 | $ 1,314.2 |
Balance (in shares) at Dec. 31, 2012 | 329,015 | (179,285) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 406.8 | 28.2 | 435 | |||
Other comprehensive earnings, net of tax | 112.2 | 0.2 | 112.4 | |||
Common dividends, net of tax benefits | (73.8) | (73.8) | ||||
Treasury stock purchases | $ (433.9) | (433.9) | ||||
Treasury stock purchases (in shares) | (9,322) | |||||
Treasury shares reissued | $ 22.4 | 22.4 | ||||
Treasury shares reissued (in shares) | 485 | |||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | $ 40.2 | 40.2 | ||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged (in shares) | 1,225 | |||||
Tax benefit on option exercises | $ 11.9 | 11.9 | ||||
Dividends paid to noncontrolling interests | (12.9) | (12.9) | ||||
Other activity | 0.5 | |||||
Other activity | 0.5 | |||||
Balance at end at Dec. 31, 2013 | $ 1,078.4 | $ (3,551.6) | 3,947.7 | (249.9) | 191.4 | 1,416 |
Balance (in shares) at Dec. 31, 2013 | 330,240 | (188,122) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 470 | 28 | 498 | |||
Other comprehensive earnings, net of tax | (272.2) | (0.5) | (272.7) | |||
Common dividends, net of tax benefits | (70.8) | (70.8) | ||||
Treasury stock purchases | $ (397.3) | (397.3) | ||||
Treasury stock purchases (in shares) | (6,911) | |||||
Treasury shares reissued | $ 22.8 | 22.8 | ||||
Treasury shares reissued (in shares) | 381 | |||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | $ 35.4 | 35.4 | ||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged (in shares) | 1,378 | |||||
Tax benefit on option exercises | $ 17.5 | 17.5 | ||||
Dividends paid to noncontrolling interests | (12.2) | (12.2) | ||||
Other activity | (0.2) | |||||
Other activity | $ 3.1 | 2.9 | ||||
Balance at end at Dec. 31, 2014 | $ 1,131.3 | $ (3,923) | 4,346.9 | (522.1) | 206.5 | 1,239.6 |
Balance (in shares) at Dec. 31, 2014 | 331,618 | (194,652) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 280.9 | 22 | 302.9 | |||
Other comprehensive earnings, net of tax | (117.8) | (0.4) | (118.2) | |||
Common dividends, net of tax benefits | (70.3) | (70.3) | ||||
Treasury stock purchases | $ (135.5) | (135.5) | ||||
Treasury stock purchases (in shares) | (1,766) | |||||
Treasury shares reissued | $ 22.9 | 22.9 | ||||
Treasury shares reissued (in shares) | 329 | |||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | $ 29.3 | 29.3 | ||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged (in shares) | 1,031 | |||||
Tax benefit on option exercises | $ 21.3 | 21.3 | ||||
Dividends paid to noncontrolling interests | (17.9) | (17.9) | ||||
Acquisition of noncontrolling interests | (220.2) | $ 403 | (200.2) | (17.4) | ||
Acquisition of noncontrolling interests (in shares) | 5,730 | |||||
Other activity | $ 4.6 | 4.6 | ||||
Balance at end at Dec. 31, 2015 | $ 961.7 | $ (3,628) | $ 4,557.5 | $ (639.9) | $ 10 | $ 1,261.3 |
Balance (in shares) at Dec. 31, 2015 | 332,649 | (190,359) |
Critical and Significant Accoun
Critical and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Critical and Significant Accounting Policies | |
Critical and Significant Accounting Policies | 1. Critical and Significant Accounting Policies The preparation of Ball Corporation’s (collectively, Ball, the company, we or our) consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires Ball’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods. These estimates are based on historical experience and various assumptions believed to be reasonable under the circumstances. Ball’s management evaluates these estimates on an ongoing basis and adjusts or revises the estimates as circumstances change. As future events and their impacts cannot be determined with precision, actual results may differ from these estimates. In the opinion of management, the financial statements reflect all adjustments necessary to fairly present the results of the periods presented. Critical Accounting Policies The company considers certain accounting policies to be critical, as their application requires management’s judgment about the impacts of matters that are inherently uncertain. Detailed below is a discussion of the accounting policies the company considers critical to our consolidated financial statements. Acquisitions The company records acquisitions resulting in the consolidation of an enterprise using the purchase method of accounting. Under this method, the acquiring company records the assets acquired, including intangible assets that can be identified and named, and liabilities assumed based on their estimated fair values at the date of acquisition. The purchase price in excess of the fair value of the assets acquired and liabilities assumed is recorded as goodwill. If the assets acquired, net of liabilities assumed, are greater than the purchase price paid, then a bargain purchase has occurred and the company will recognize the gain immediately in earnings. Among other sources of relevant information, the company uses independent appraisals and actuarial or other valuations to assist in determining the estimated fair values of the assets and liabilities. Various assumptions are used in the determination of these estimated fair values including discount rates, market and volume growth rates, product selling prices, production costs and other prospective financial information. Transaction costs associated with acquisitions are expensed as incurred and included in the business consolidation and other activities line of the consolidated statement of earnings. For acquisitions where the company already owns an equity investment in the acquired company, the company will recognize in earnings, upon the completion of the acquisition, a gain or loss related to the company’s existing equity investment. This gain or loss is calculated based on the fair value of the equity investment as compared to the carrying value of the existing equity investment on the date of acquisition. When the company purchases additional interests of consolidated subsidiaries that does not result in a change in control, the difference between the fair value and carrying value of the noncontrolling interests acquired is accounted for in the common stock line within shareholders’ equity. Exit and Other Closure Costs (Business Consolidation Costs) The company estimates its liabilities for business closure activities by accumulating detailed estimates of costs and asset sale proceeds, if any, for each business consolidation initiative. This includes the estimated costs of employee severance, pension and related benefits; impairment of property and equipment and other assets, including estimates of net realizable value; accelerated depreciation; termination payments for contracts and leases; contractual obligations; and any other qualifying costs related to the exit plan. These estimated costs are grouped by specific projects within the overall exit plan and are then monitored on a monthly basis. Such disclosures represent management’s best estimates, but require assumptions about the plans that may change over time. Changes in estimates for individual locations and other matters are evaluated periodically to determine if a change in estimate is required for the overall restructuring plan. Subsequent changes to the original estimates are included in current earnings and identified as business consolidation gains or losses. Recoverability of Goodwill and Intangible Assets On an annual basis and at interim periods when circumstances require, the company tests the recoverability of its goodwill and indefinite-lived intangible assets. The company utilizes the two-step impairment analysis and has elected not to use the qualitative assessment or “step zero” approach. In the two-step impairment analysis, the company compares the carrying value of each identified reporting unit to its fair value. If the carrying value of the reporting unit is greater than its fair value, the second step is performed, where the implied fair value of goodwill is compared to its carrying value. The company recognizes an impairment charge for the amount by which the carrying amount of goodwill exceeds its implied fair value. The company estimates fair value for each reporting unit based on the weighted average of the estimated fair values using the market and income approaches. Under the market approach, the company uses available information regarding multiples used in recent transactions, if any, involving transfers of controlling interests as well as publicly available trading multiples based on the enterprise value of companies in the packaging and aerospace and defense industries. The appropriate multiple is applied to forecasted EBITDA (a non-GAAP item defined by the company as earnings before interest, taxes, depreciation and amortization) of each reporting unit to estimate fair value. Under the income approach, fair value is estimated as the present value of estimated future cash flows of each reporting unit. The projected cash flows incorporate various assumptions related to weighted average cost of capital (WACC) and growth rates specific to each reporting unit. Amortizable intangible assets are tested for impairment, when deemed necessary, based on undiscounted cash flows and, if impaired, are written down to fair value based on either discounted cash flows or appraised values. Defined Benefit Pension Plans and Other Employee Benefits The company has defined benefit plans that cover a significant portion of its employees. The company also has postretirement plans that provide certain medical benefits and life insurance for retirees and eligible dependents and, to a lesser extent, participates in multi-employer defined benefit plans for which Ball is not the sponsor. For the company-sponsored plans, the relevant accounting guidance requires that management make certain assumptions relating to the long-term rate of return on plan assets, discount rates used to determine the present value of future obligations and expenses, salary inflation rates, health care cost trend rates, mortality rates and other assumptions. The company believes that the accounting estimates related to our pension and postretirement plans are critical accounting estimates, because they are highly susceptible to change from period to period based on the performance of plan assets, actuarial valuations, market conditions and contracted benefit changes. The selection of assumptions is based on historical trends and known economic and market conditions at the time of valuation, as well as independent studies of trends performed by the company’s actuaries. However, actual results may differ substantially from the estimates that were based on the critical assumptions. The company recognizes the funded status of each defined benefit pension plan and other postretirement benefit plans in the consolidated balance sheet. Each overfunded plan is recognized as an asset, and each underfunded plan is recognized as a liability. Pension plan liabilities are revalued annually, or when an event occurs that requires remeasurement, based on updated assumptions and information about the individuals covered by the plan. For pension plans, accumulated actuarial gains and losses in excess of a 10 percent corridor and the prior service cost are amortized on a straight-line basis from the date recognized over the average remaining service period of active participants or over the average life expectancy for plans with significant inactive participants. For other postemployment benefits, the 10 percent corridor is not used. The majority of costs related to defined benefit and other postretirement plans are included in cost of sales; the remainder is included in selling, general and administrative expenses. In addition to defined benefit and postretirement plans, the company maintains reserves for employee medical claims, up to our insurance stop-loss limit, and workers’ compensation claims. These are regularly evaluated and revised, as needed, based on a variety of information, including historical experience, actuarial estimates and current employee statistics. Income Taxes Deferred income taxes reflect the future tax consequences of differences between the tax bases of assets and liabilities and their financial reporting amounts at each balance sheet date, based upon enacted income tax laws and tax rates. Income tax expense or benefit is provided based on earnings reported in the financial statements. The provision for income tax expense or benefit differs from the amounts of income taxes currently payable because certain items of income and expense included in the consolidated financial statements are recognized in different time periods by taxing authorities. Deferred tax assets, including operating loss, capital loss and tax credit carryforwards, are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that any portion of these tax attributes will not be realized. In addition, from time to time, management must assess the need to accrue or disclose uncertain tax positions for proposed adjustments from various federal, state and foreign tax authorities who regularly audit the company in the normal course of business. In making these assessments, management must often analyze complex tax laws of multiple jurisdictions, including many foreign jurisdictions. The accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The company records the related interest expense and penalties, if any, as tax expense in the tax provision. Derivative Financial Instruments The company uses derivative financial instruments for the purpose of hedging commercial risk exposures to fluctuations in interest rates, currency exchange rates, raw material costs, inflation rates and common share prices. The company’s derivative instruments are recorded in the consolidated balance sheets at fair value. The company values each derivative financial instrument either by using a single valuation technique based on observable market inputs performed internally or by obtaining valuation information from a reliable and observable market source. For a derivative designated as a cash flow hedge, the effective portion of the derivative’s mark to fair value is initially recorded as a component of accumulated other comprehensive earnings and subsequently reclassified into earnings when the hedged item affects earnings, unless it is probable that the forecasted transaction will not occur. The ineffective portion of the mark to fair value associated with all hedges is recorded in earnings immediately. Derivatives that do not qualify for hedge accounting are marked to fair value with gains and losses immediately recorded in earnings. In the consolidated statements of cash flows, derivative activities are classified based on the items being hedged. Realized gains and losses from hedges are classified in the consolidated statements of earnings consistent with the accounting treatment of the items being hedged. Upon the early dedesignation of an effective derivative contract, the gains or losses are deferred in accumulated other comprehensive earnings until the originally hedged item affects earnings. Any gains or losses incurred after the dedesignation date are recorded in earnings immediately. Contingencies The company is subject to various legal proceedings and claims, including those that arise in the ordinary course of business. The company records loss contingencies when it determines that the outcome of the future event is probable of occurring and the amount of the loss can be reasonably estimated. Gain contingencies are recognized in the financial statements when they are realized. The determination of a reserve for a loss contingency is based on management’s judgment of probability and estimates with respect to the likelihood of an outcome and valuation of the future event. Liabilities are recorded or adjusted when events or circumstances cause these judgments or estimates to change. In assessing whether a loss is probable, Ball may consider the following factors, among others: the nature of the litigation, claim or assessment; available information, opinions or views of legal counsel and other advisors; and the experience gained from similar cases by the company and others. The company provides disclosures for material contingencies when there is a reasonable possibility that a loss or an additional loss may be incurred. Actual amounts realized upon settlement of contingencies may be different than amounts recorded and disclosed and could have a significant impact on the company’s consolidated financial statements. See Note 21 to the consolidated financial statements within Item 8 of this annual report for further details. Significant Accounting Policies Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Ball, its consolidated subsidiaries, and variable interest entities in which the company is considered to be the primary beneficiary. Equity investments in which the company exercises significant influence but does not control and is not the primary beneficiary are accounted for using the equity method of accounting. Investments in which the company neither exercises significant influence over the investee, nor is the primary beneficiary of the investment, are accounted for using the cost method of accounting. Intercompany transactions are eliminated. Reclassifications Certain prior year amounts have been reclassified in order to conform to the current year presentation. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less. Inventories Inventories are stated at the lower of cost or market using either the first-in, first-out (FIFO) cost method of accounting or the average cost method. Inventory cost is calculated for each inventory component taking into consideration the appropriate cost factors including fixed and variable overhead, material price volatility and production levels. Impairment of Long-Lived Assets We review long-lived assets for impairment when circumstances indicate the carrying amount of an asset or asset group may not be recoverable based on the undiscounted future cash flows of the asset. We review long-lived assets for impairment at the individual asset or the asset group level for which the lowest level of independent cash flows can be identified. If the carrying amount of the asset or asset group is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows, or external appraisals, as applicable. Depreciation and Amortization Property, plant and equipment are carried at the cost of acquisition or construction and depreciated over the estimated useful lives of the assets. Repairs and maintenance costs, including labor and material costs for major improvements such as annual production line overhauls, are expensed as incurred, unless those costs substantially increase the useful lives or capacity of the existing assets. Assets are depreciated and amortized using the straight-line method over their estimated useful lives, generally 5 to 40 years for buildings and improvements and 2 to 20 years for machinery and equipment. Finite-lived intangible assets, including capitalized software costs, are generally amortized over their estimated useful lives of 3 to 23 years. The company periodically reviews these estimated useful lives and when appropriate changes are made prospectively. Deferred financing costs are amortized over the life of the related loan facility and are reported as part of interest expense. When debt is extinguished prior to its maturity date, the write-off of the remaining unamortized deferred financing costs, or a pro rata portion thereof, is also reported in the consolidated statement of earnings as debt refinancing and other costs. For certain business consolidation activities, accelerated depreciation may be required over the remaining useful life for assets designated to be scrapped or abandoned. The accelerated depreciation related to such activities is disclosed as part of business consolidation and other activities in the appropriate period. Environmental Reserves The company estimates the liability related to environmental matters based on , among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. The company records the best estimate of a loss when the loss is considered probable. As additional information becomes available, the company assesses the potential liability related to pending matters and revises the estimates. Revenue Recognition in the Packaging Segments The company recognizes sales of products in the packaging segments when the four basic criteria of revenue recognition are met: delivery has occurred; title has transferred; there is persuasive evidence of an agreement or arrangement and the price is fixed or determinable; and collection is reasonably assured. Shipping and handling costs are reported within cost of sales in the consolidated statement of earnings. Revenue Recognition in the Aerospace and Technologies Segment Sales under long-term contracts in the aerospace and technologies segment are primarily recognized using percentage-of-completion under the cost-to-cost method of accounting. The two primary types of long-term sales contracts utilized are cost-type contracts, which are agreements to perform for cost plus an agreed upon profit component and fixed-price sales contracts, which are completed for a fixed price. Cost-type sales contracts can have different types of fee arrangements, including fixed-fee, cost, milestone and performance incentive fees, award fees or a combination thereof. At the inception of contract performance, our estimates of base, incentive and other fees are established at a conservative estimate of profit over the period of contract performance. Throughout the period of contract performance, the company regularly reevaluates and, if necessary, revises estimates of total contract revenue, total contract cost, extent of progress toward completion, probability of receipt of any award and performance fees and any clawback provisions included in the contract. Provision for estimated contract losses, if any, is made in the period that such losses are determined to be probable. Because of sales contract payment schedules, limitations on funding, and contract terms, our sales and accounts receivable generally include amounts that have been earned but not yet billed. Contract claims are only recorded if it is probable that the claim will result in additional contract revenue and the claim amounts can be reliably estimated. Revenue associated with claims is recorded only for costs already incurred and does not include a profit component. Pre-contract costs that are not approved by the customer for reimbursement are expensed as incurred. As a prime U.S. government contractor or subcontractor, the aerospace and technologies segment is subject to a high degree of regulation, financial review and oversight by the U.S. government. Fair Value Measurements Generally accepted accounting principles define fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value using the following definitions (from highest to lowest priority): · Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. · Level 2—Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. · Level 3—Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable. Stock-Based Compensation Ball has a variety of restricted stock, stock option, and stock-settled appreciate rights (SSARs) plans, and the related stock-based compensation is primarily reported as part of selling, general and administrative expenses in the consolidated statements of earnings. The compensation expense associated with restricted stock grants is calculated using the fair value at the date of grant (closing stock price) and is amortized over the restriction period. For stock options and SSARs, the company has elected to use the Black-Scholes valuation model and amortizes the estimated fair value, determined at the date of grant, on a straight-line basis over the requisite service period (generally the vesting period). The company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is valued at the closing price of the company’s common stock at the end of each reporting period. Tax benefits associated with option and SSAR exercises are reported in financing activities in the consolidated statements of cash flows. Further details regarding the expense calculated under those fair value based methods are provided in Note 17. Research and Development Research and development costs are expensed as incurred in connection with the company’s programs for the development of products and processes. Costs incurred in connection with these programs, the majority of which are included in cost of sales, amounted to $26.0 million, $26.6 million and $31.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. Currency Translation Assets and liabilities of foreign operations with a functional currency other than the U.S. dollar are translated using period-end exchange rates, and revenues and expenses are translated using average exchange rates during each period. Translation gains and losses are reported in accumulated other comprehensive earnings as a component of shareholders’ equity. |
Accounting Pronouncements
Accounting Pronouncements | 12 Months Ended |
Dec. 31, 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 applied prospectively on January 1, 2015, and did not have a material effect on the company’s consolidated financial statements. New Accounting Guidance In January 2016, accounting guidance was issued on classification and measurement financial assets and liabilities (equity securities and financial liabilities) under the fair value option, and the presentation and disclosure requirements for financial instruments. The guidance modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. An exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under the guidance and, as such, these investments may be measured at cost. The guidance will be effective on January 1, 2018. The company is currently assessing the impact that the adoption of this new guidance will have on its consolidated financial statements. In November 2015, accounting guidance was issued that requires classification of all deferred tax assets and liabilities, along with any related valuation allowance, as noncurrent on the balance sheet. As a result, each tax jurisdiction will now only have one net noncurrent deferred tax asset or liability. The guidance, however, does not change the existing requirement that only permits offsetting within a tax jurisdiction, that is, companies are still prohibited from offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another tax jurisdiction. The guidance will be applied prospectively on January 1, 2016. Current deferred tax assets and current deferred tax liabilities were $96.3 million and $3.1 million, respectively, at December 31, 2015. In September 2015, amendments to existing accounting guidance were issued to simplify the accounting for adjustments made to provisional amounts recognized in business combinations. Under the previous guidance, companies were required to retrospectively revise comparative financial statements for changes made to provisional amounts. The amended guidance eliminates the requirement to retrospectively account for these adjustments. The guidance will be applied prospectively to adjustments to provisional amounts that occur on or after January 1, 2016. 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, or net realizable value less a normal profit margin. Current replacement cost can be used provided that it is not above the net realizable value (ceiling) or below net realizable value 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. Net realizable value 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 applied prospectively on January 1, 2016. The guidance is not expected to have a material effect on the company’s consolidated financial statements. In May 2015, amendments to the existing accounting guidance were issued to remove the requirement to categorize net asset value per share, currently utilized as a practical expedient, by investment within the fair value hierarchy based on redeemable dates. This amendment also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share expedient. The guidance will be applied prospectively on January 1, 2016. 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. This guidance will be applied prospectively on January 1, 2016. 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. This guidance will be applied retrospectively on January 1, 2016. The guidance 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. This guidance will be applied on a modified retrospective basis on January 1, 2016. The guidance is not expected to have a material effect on the company’s consolidated financial statements. In January 2015, accounting guidance was issued to eliminate the concept of extraordinary items. Current guidance requires extraordinary events, defined as both unusual in nature and infrequent in occurrence, to be reported as separate line items from results of ordinary operations within company financial statements. Going forward the disclosure requirements will be for items and events which are unusual in nature and/or infrequent in occurrence. Companies have the option of disclosing as a separate component of income from continuing operations or disclosing unusual and or infrequent events in the notes to the financial statements. The guidance will be applied prospectively on January 1, 2016. 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 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 | 12 Months Ended |
Dec. 31, 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, Argentina and India, which manufacture and sell steel food, aerosol, paint, general line and decorative specialty containers, as well as extruded aluminum beverage and aerosol containers and aluminum slugs. Aerospace and technologies : Consists of the manufacture and sale of aerospace and other related products and the providing of services used in the defense, civil space and commercial space industries. The accounting policies of the segments are the same as those in the consolidated financial statements and are discussed in Note 1. The company also has investments in companies in the U.S. and Vietnam, which are accounted for under the equity method of accounting and, accordingly, those results are not included in segment sales or earnings. Major Customers Net sales to major customers, as a percentage of consolidated net sales, were as follows: 2015 2014 2013 Coca-Cola Bottlers’ Sales & Services Company LLC % % % MillerCoors LLC and SABMiller plc % % % U.S. Government % % % Summary of Net Sales by Geographic Area (a) ($ in millions) U.S. Foreign Consolidated 2015 $ $ $ 2014 2013 Summary of Net Long-Lived Assets by Geographic Area (a) (b) ($ in millions) U.S. Brazil Other Consolidated 2015 $ $ $ $ 2014 (a) Includes intercompany eliminations. (b) Long-lived assets exclude goodwill, intangible assets and noncurrent restricted cash. Summary of Business by Segment Years Ended December 31, ($ in millions) 2015 2014 2013 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 and 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 from continuing operations Discontinued operations, net of tax — — Net earnings Less net earnings attributable to noncontrolling interests ) ) ) Net earnings attibutable to Ball Corporation $ $ $ Years Ended December 31, ($ in millions) 2015 2014 2013 Depreciation and Amortization Metal beverage packaging, Americas & Asia $ $ $ Metal beverage packaging, Europe Metal food & household products packaging Aerospace & technologies Segment depreciation and amortization Corporate Depreciation and amortization $ $ $ Capital Expenditures Metal beverage packaging, Americas & Asia $ $ $ Metal beverage packaging, Europe Metal food & household products packaging Aerospace & technologies Segment capital expenditures Corporate Capital expenditures $ $ $ 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 $ $ Investments in Affiliates Metal beverage packaging, Americas & Asia $ $ Metal beverage packaging, Europe Corporate Total investments in affiliates $ $ |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 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 valued 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. 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. Ball currently expects to complete the Rexam acquisition during the first half of 2016, subject to final regulatory approval by the European Commission (EC), Brazil’s Council for Economic Defence (CADE) and the Federal Trade Commission (FTC), the completion of the Rexam acquisition divestitures required by the regulators and other customary closing conditions; however, there can be no assurances that the Rexam acquisition or the Rexam acquisition divestitures will be completed by such time, or on the terms described herein, or at all. The European Commission (EC) and Brazil’s Council for Economic Defence (CADE) have provided conditional clearance of the proposed acquisition, subject to their approval of the proposed buyer of the divested assets and other customary regulatory processes. Ball owned interests in a joint venture company (Latapack-Ball) organized and operating in Brazil. During October and November 2015, Ball and its joint venture partners reached an agreement to exchange all of their interest in Latapack-Ball for a total of approximately 5.7 million treasury shares of Ball common stock and $17.4 million of cash. The acquisition of the noncontrolling interests in the joint venture was completed in December 2015, and Latapack-Ball is now a wholly owned subsidiary of Ball. Long-Term Debt 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. In December 2015, the company issued senior notes totaling $1 billion, €400 million and €700 million due 2020, 2020, and 2023, respectively, with rates of 4.375 percent, 3.5 percent and 4.375 percent, respectively. Pursuant to the terms of the unsecured bridge loan agreement, the company deposited the net proceeds from the issuance of such notes into escrow accounts, recorded as restricted cash, (from which proceeds would be released, subject to certain conditions, to pay a portion of the cash consideration payable to Rexam shareholders and related fees and expenses), which reduced the commitments under the unsecured bridge loan agreement to £1.9 billion. If the Rexam acquisition is not consummated on or prior to November 15, 2016, we will be required to effect the redemption of all of the outstanding notes from the December 2015 senior note issuances at the redemption price applicable to each series. This would result in the use of restricted cash and other available funds to redeem these senior notes and pay any additional fees. However, the senior note offerings are not conditioned upon the Rexam acquisition. See Note 13 for further details related to these transactions. On February 19, 2015, the company entered into a $3 billion revolving credit facility to replace the existing approximate $1 billion bank credit facility, redeem the 2020 and 2021 senior notes and provide ongoing liquidity for the company. In June 2015, during a subsequent debt offering, the company issued $1 billion of 5.25 percent senior notes, thereby reducing the borrowing capacity under the revolving credit facility from $3 billion to $2.25 billion. See Note 13 for further details related to these transactions. Currency Exchange Rate and Interest Rate Risks During 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 £1.8 billion ($2.7 billion). In connection with the December 2015 issuance of $1 billion of U.S. dollar senior notes due 2020, the company executed cross-currency swaps to convert this fixed-rate U.S. dollar debt issuance to fixed-rate euro debt for the life of the notes to more effectively match the future cash flows of our business. The cross-currency swaps have a notional amount of $1.0 billion and expire within five years. These contracts were not designated as hedges, and therefore, changes in the fair value of these contracts are recorded in the consolidated statements of earnings in business consolidation and other activities. Also in 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 December 31, 2015, the company had U.S. and European outstanding interest rate swaps with notional amounts totaling approximately $200 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 2015, the company terminated interest rate swap contracts with an aggregate notional amount of $923 million (€850 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 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 19. 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 $24.4 million of contingent noncash consideration. The facilities manufacture multiple-sized closures for the metal food container market, including high quality steel and aluminum easy-open ends. The financial results of Sonoco have been included in our metal food and household products packaging segment from the date of acquisition. The acquisition is not material to the company. |
Business Consolidation and Othe
Business Consolidation and Other Activities | 12 Months Ended |
Dec. 31, 2015 | |
Business Consolidation and Other Activities | |
Business Consolidation and Other Activities | 5. Business Consolidation and Other Activities Following is a summary of business consolidation and other activity (charges)/gains included in the consolidated statements of earnings: Years Ended December 31, ($ in millions) 2015 2014 2013 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 2015, the company announced the closure of its 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 charges of $18.8 million in 2015, which are comprised of $16.8 million in severance, pension and other employee benefits and other individually insignificant items totaling $2.0 million. During 2015, the company recorded charges of $3.5 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 year ended December 31, 2015, the company also recognized charges of $1.8 million for individually insignificant items. Metal Beverage Packaging, Europe During 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 2015, the company also recognized charges of $5.1 million for individually insignificant items. Metal Food and Household Products Packaging During 2015, the company recognized charges of $0.5 million for individually insignificant items. Corporate During the year ended December 31, 2015 , the company recorded charges of $97.9 million for professional services and other costs associated with the proposed acquisition of Rexam announced in February 2015. Also during the year ended December 31, 2015, the company recognized losses of $41.0 million 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 19. During 2015, the company recorded charges of $14.2 million for net foreign currency gains and losses from the revaluation of foreign currency denominated restricted cash held to pay a portion of the cash component of the proposed Rexam acquisition purchase price and the revaluation of the euro-denominated debt issuance in December 2015. The company also recognized $7.4 million for cross-currency swaps in connection with the December 2015 issuance of the $1 billion senior notes due 2020 to more effectively match the future cash flows of our business. See Note 19 for additional information. The company recorded charges in 2015 of $0.5 million for individually insignificant activities. Aerospace & Technologies During 2015, the company recognized a net of $0.7 million gain for individually insignificant items. 2014 Metal Beverage Packaging, Americas and Asia During September 2014, the company executed a lump sum buyout offer to certain terminated vested pension plan participants in its U.S. defined benefit pension plans. The offer provided participants with a one-time election to receive a lump-sum payout in full settlement of their remaining pension benefits (see Note 15 for details). In connection with this offer, a non-cash charge of $13.9 million was recorded in the segment for the settlement of its pension benefit obligations in 2014. During 2014, a fire occurred at a metal beverage packaging, Americas, facility. As a result, the company recorded a gain of $3.5 million to reflect the difference between the net book value of the impaired assets and the net insurance proceeds. In 2014, the company received and recorded compensation of $5.0 million for the reimbursement of severance costs incurred in connection with the company’s closure and relocation of the Shenzhen, PRC, manufacturing facility in 2013. Additionally, the company sold its plastic motor oil container and pail manufacturing business in the PRC and recorded a net loss of $0.4 million in connection with the sale. Also included in 2014 were net charges of $1.7 million related to business reorganization activities in the company’s metal beverage packaging, Asia, operations, and for ongoing costs related to previously closed facilities and other insignificant activities. Metal Beverage Packaging, Europe, and Corporate In 2014, the company recorded a non-cash charge of $7.2 million for the aforementioned settlement of its pension benefit obligations. The company recorded charges of $4.1 million, primarily for headcount reductions, cost-out initiatives and the relocation of the company’s European headquarters from Germany to Switzerland. During the fourth quarter, the company recorded charges of $1.1 million related to business reorganization activities in the company’s metal beverage packaging, Europe, operations. Also included in 2014 were charges of $4.8 million related to the write-off of previously capitalized costs associated with the company’s Lublin, Poland, facility, and for other insignificant activities. Metal Food and Household Products Packaging In the fourth quarter, the company recorded a provision against the balance of a long-term receivable of $16.5 million as a result of the financial difficulties of a metal food and household products packaging segment customer. This provision represented the company’s estimate of the most likely potential loss of value it expected to incur as a result of the financial condition of this customer. During 2014, the company recorded a non-cash charge of $10.3 million for the aforementioned settlement of its pension benefit obligations. In 2014, the company recorded charges of $6.2 million related to a reduction in force to eliminate certain food can production in the Oakdale, California, facility, as well as charges related to voluntary separation programs. The year also included charges of $3.9 million for costs in connection with the announced closure of its Danville, Illinois, steel aerosol packaging facility. Additionally, charges of $5.0 million were recorded for previously closed facilities and other insignificant activities. Aerospace and Technologies During 2014, the company recorded a non-cash charge of $13.9 million for the aforementioned settlement of its pension benefit obligations. 2013 Metal Beverage Packaging, Americas and Asia During July 2013, the company signed a compensation agreement for approximately $72 million pretax with the PRC government to close the Shenzhen manufacturing facility and relocate the production capacity. Proceeds from the compensation agreement offset costs related to the closure and relocation of the Shenzhen facility and were composed of compensation for the disposal of the land and building, the disposal and transfer of machinery and equipment, business interruption losses and severance. Compensation received in excess of expenses or losses incurred by the company were reflected in business consolidation and other activities. During 2013, the company received and recorded the following: (1) $34.0 million of compensation for land and buildings, resulting in income of $26.2 million for the excess compensation over net book value; (2) $26.8 million of compensation for machinery and equipment, including removal costs, of which $3.8 million was used to offset 2013 costs and $23.0 million was deferred in the balance sheet to offset capital expenditures for the relocation of capacity; (3) $6.2 million of compensation for business interruption, of which $4.1 million was recognized in cost of sales in 2013; (4) $7.2 million of expense for severance costs, the majority of which was compensated in the first quarter of 2014 and (5) $1.6 million for other costs that were not compensated under the agreement. In 2013, Ball eliminated 12-ounce beverage can production from the company’s Milwaukee, Wisconsin, facility. In connection with the line shut down, the company recorded charges of $9.7 million, composed of $4.6 million for accelerated depreciation, $2.1 million for severance and other employee benefits and $3.0 million for other costs. In addition, the company recorded net charges of $11.3 million, primarily for ongoing costs related to the previously announced closures of Ball’s Columbus, Ohio, and Gainesville, Florida, facilities and voluntary separation programs, as well as other insignificant costs. Metal Beverage Packaging, Europe, and Corporate The company recorded charges of $11.3 million, primarily for headcount reductions, cost-out initiatives and the relocation of the company’s European headquarters from Germany to Switzerland. Metal Food and Household Products Packaging During the fourth quarter, the company announced plans to close its Danville, Illinois, steel aerosol packaging facility in the second half of 2014, and recorded charges of $4.9 million in connection with this planned closure. The Danville facility produced steel aerosol cans and ends for household products customers, which are now supplied by other North American metal food and household products packaging facilities. The company recorded an accounts receivable provision of $27.0 million as a result of the October 28, 2013, bankruptcy filing of a metal food and household products packaging segment customer. This provision represented the company’s estimate of the most likely potential loss of value it expected to incur on the approximately $46.5 million accounts receivable balance as a result of the customer’s bankruptcy. In October 2013, the company entered into an agreement with the customer’s second lien lenders to provide, among other things, that if such lenders were the successful bidder for the customer’s assets out of bankruptcy, the company would supply the lenders’ can and end requirements under a new long-term contract. On February 6, 2014, the lenders were selected as the successful bidder for the customer’s assets and such selection was approved by the U.S. Bankruptcy Court on February 12, 2014. The lenders acquired the customer’s assets on February 28, 2014, and as a result, the company fully wrote off the accounts receivable reserved for at December 31, 2013. The company also recorded various short-term and long-term receivables in conjunction with the lender’s acquisition. The company closed its Elgin, Illinois, metal food and household products packaging facility in December 2013 and recorded total charges of $29.0 million during the year composed of $16.0 million for severance, pension and other employee benefits; $4.2 million for the write down of the land and building to net realizable value; and $8.8 million for the accelerated depreciation on assets to be abandoned and other closure costs. The Elgin facility produced steel aerosol and specialty cans, as well as flat steel sheet used by other Ball facilities, which are now supplied by other North American metal food and household products packaging facilities. During 2013 the company also recorded: (1) a charge of $5.9 million to migrate certain hourly employees from a multi-employer defined benefit pension plan as of January 1, 2014, to a Ball-sponsored defined benefit pension plan; (2) income of $3.5 million to accrue for the reimbursement of funds paid in 2012 for the settlement of certain Canadian defined benefit pension liabilities related to previously closed facilities and (3) charges of $0.4 million for other insignificant costs. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Receivables | |
Receivables | 6. Receivables December 31, ($ in millions) 2015 2014 Trade accounts receivable $ $ Less allowances for doubtful accounts ) ) Net trade accounts receivable Other receivables $ $ Net accounts receivable under long-term contracts, due primarily from agencies of the U.S. government and their prime contractors, were $196.2 million and $205.8 million for the years ended December 31, 2015 and 2014, respectively, and included $144.7 million and $133.3 million at each period end, respectively, representing the recognized sales value of performance that was not yet billable to customers. The average length of the long-term contracts is approximately 2.5 years, and the average length remaining on those contracts at December 31, 2015, was 11 months. At December 31, 2015, $195.1 million of net accounts receivables is expected to be collected within the next year and is related to customary fees and cost withholdings that will be paid upon milestone or contract completions, as well as final overhead rate settlements. Other receivables include income and sales tax receivables, certain vendor rebate receivables and other miscellaneous receivables. The company has entered into several regional uncommitted and committed accounts receivable factoring programs with various financial institutions for certain receivables of the company. The programs are accounted for as true sales of the receivables, without recourse to Ball, and had combined limits of approximately $600 million at December 31, 2015. A total of $478.7 million and $197.6 million were sold under these programs as of December 31, 2015 and 2014, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventories | |
Inventories | 7. Inventories December 31, ($ 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 | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | 8. Property, Plant and Equipment December 31, ($ in millions) 2015 2014 Land $ $ Buildings Machinery and equipment Construction-in-progress Accumulated depreciation ) ) $ $ Property, plant and equipment are stated at historical or acquired cost. Depreciation expense amounted to $247.3 million, $239.5 million, and $261.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill | |
Goodwill | 9. Goodwill ($ in millions) Metal Beverage Packaging, Americas & Asia Metal Beverage Packaging, Europe Metal Food & Household Products Packaging Aerospace & Technologies Total Balance at December 31, 2013 $ $ $ $ $ Business disposition ) — — — ) Effects of currency exchange rates — ) ) — ) Balance at December 31, 2014 Business acquisition — — — Effects of currency exchange rates — ) ) — ) Balance at December 31, 2015 $ $ $ $ $ The company’s annual goodwill impairment test completed in the fourth quarter of 2015 indicated the fair value of the metal beverage packaging, Asia (Beverage Asia) reporting unit exceeded its carrying amount by approximately 25 percent. The current supply of metal beverage packaging exceeds demand in China, resulting in pricing pressure and negative impacts on the profitability of our Beverage Asia reporting unit. If it becomes an expectation that this oversupply situation will continue for an extended period of time, the company may be required to record a noncash impairment charge for some or all of the goodwill associated with the Beverage Asia reporting unit, the total balance of which was $78.3 million at December 31, 2015. |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2015 | |
Restricted Cash | |
Restricted Cash | 10. Restricted Cash In December 2015, the company issued €400 million of 3.5 percent senior notes due in December 2020 and €700 million of 4.375 percent senior notes due in December 2023. Subsequent to the issuance, the company converted the net euro proceeds to British pounds. The company elected to restrict the funds in an acquisition escrow account, which enabled the reduction of its unsecured, committed bridge loan agreement capacity from £3.3 billion to £1.9 billion. The company issued additional senior notes due in December 2020 for $1 billion. At December 31, 2015, £792 million ($1,167 million) was held in a British pound denominated escrow account and $987.5 million was held in a U.S. dollar escrow account. The funds in the escrow accounts will be used to pay a portion of the cash component of the announced, proposed acquisition price of Rexam and was therefore recorded as noncurrent restricted cash. There was no noncurrent restricted cash balance at December 31, 2014. Subsequent to December 31, 2015, the company converted the U.S. dollars into British pounds. |
Intangibles and Other Assets
Intangibles and Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Intangibles and Other Assets | |
Intangibles and Other Assets | 11. Intangibles and Other Assets December 31, ($ in millions) 2015 2014 Investments in affiliates $ $ Intangible assets (net of accumulated amortization of $132.9 million and $115.2 million at December 31, 2015 and 2014, respectively) Capitalized software (net of accumulated amortization of $115.6 million and $103.8 million at December 31, 2015 and 2014, respectively) Company and trust-owned life insurance Deferred financing costs Long-term deferred tax assets Other $ $ Total amortization expense of intangible assets amounted to $38.2 million, $41.4 million, and $38.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. Based on intangible asset values and currency exchange rates as of December 31, 2015, total annual intangible asset amortization expense is expected to be $40.0 million, $36.3 million, $32.0 million, $24.6 million and $21.3 million for the years 2016 through 2020, respectively, and $40.1 million combined for all years thereafter. In the fourth quarter 2014, the company recorded a provision against the balance of a long-term receivable of $16.5 million as a result of the financial difficulties of a metal food and household products packaging segment customer (see Note 5). |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases | |
Leases | 12. Leases The company leases office, warehousing and manufacturing space and certain equipment in the packaging segments and office and technical space in the aerospace and technologies segment. Certain of the company’s leases in effect at December 31, 2015, include renewal options and/or escalation clauses for adjusting lease expense based on various factors. Under the company’s lease arrangements, Ball has the option to purchase the leased equipment at the end of the lease term, or if the company elects not to do so, to compensate the lessors for the difference between the fair market value of the equipment and the guaranteed minimum residual value. The company’s maximum risk under these lease agreements was approximately $19.5 million as of December 31, 2015. Total noncancellable operating leases in effect at December 31, 2015, require rental payments of $33.1 million, $26.5 million, $21.1 million, $16.2 million and $10.1 million for the years 2016 through 2020, respectively, and $44.7 million combined for all years thereafter. Lease expense for all operating leases was $65.6 million, $81.2 million, and $73.2 million in 2015, 2014 and 2013, respectively. |
Debt and Interest Costs
Debt and Interest Costs | 12 Months Ended |
Dec. 31, 2015 | |
Debt and Interest Costs | |
Debt and Interest Costs | 13. Debt and Interest Costs Long-term debt and interest rates in effect consisted of the following: December 31, ($ in millions) 2015 2014 Notes Payable 6.75% Senior Notes, due September 2020 $ — $ 5.75% Senior Notes, due May 2021 — 5.25% Senior Notes, due July 2025 — 5.00% Senior Notes, due March 2022 4.375% Senior Notes, due December 2020 — 4.375% Senior Notes, euro denominated, due December 2023 — 4.00% Senior Notes, due November 2023 3.50% Senior Notes, euro denominated, due December 2020 — Multi-currency revolver, due February 2018 — — Bridge Facility — — Senior Credit Facilities, due June 2018 (at variable rates) Term C Loan, euro denominated (2014 - 1.65%) — Latapack-Ball Notes Payable, denominated in various currencies (2015 - 4.35%; 2014 - 4.14%) Other (including discounts and premiums) ) Less: Current portion of long-term debt ) ) $ $ At December 31, 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, multi-currency committed revolving credit facilities, which are available until February 2018. In addition to these facilities, the company had approximately $452 million of short-term uncommitted credit facilities available at December 31, 2015, of which $23.7 million was outstanding and due on demand. At December 31, 2014, the company had $10.1 million outstanding under short-term uncommitted credit facilities. The weighted average interest rate of the outstanding short-term facilities was 0.9 percent at December 31, 2015, and 1.5 percent at December 31, 2014. Short-term debt and current portion of long-term debt on the balance sheet includes the company’s borrowings under its existing accounts receivable securitization agreement, with no amounts outstanding at December 31, 2015, and $110 million outstanding at December 31, 2014. This agreement, which has been amended and extended from time to time, is scheduled to mature in June 2017 and allows the company to borrow against a maximum amount of accounts receivable that varies between $90 million and $140 million depending on the seasonal accounts receivable balance in the company’s North American packaging businesses. Following is a summary of debt refinancing and other costs included in the consolidated statements of earnings: Years Ended December 31, ($ in millions) 2015 2014 2013 Debt Refinancing and Other Costs: Redemption of 6.75% and 5.75% senior notes, due September 2020 and May 2021, respectively $ ) $ — $ — Unsecured, committed bridge facility ) — — Economic hedge - interest rate risk ) — — Partial extinguishment of committed bridge facility ) — — Partial extinguishment of revolving credit facility ) — — Interest expense on 3.5% and 4.375% senior notes ) — — Refinance of senior credit facilities ) — — Redemption of 7.375% senior notes, due September 2019 — ) — Early repayment of Term A loan — — ) Other individually insignificant — — ) $ ) $ ) $ ) 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. 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. In June 2015, Ball issued $1 billion of 5.25 percent senior notes due in July 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 consolidated statements of earnings. Also in February 2015, the company entered into a £3.3 billion unsecured bridge loan agreement, pursuant to which lending institutions have agreed, subject to limited conditions, to provide financing necessary to pay the cash portion of the consideration payable to Rexam shareholders upon consummation of the proposed acquisition of Rexam and related fees and expenses. The unsecured bridge loan agreement will bear interest that can vary depending on the amount borrowed and the duration that the facility is outstanding. These charges of $22.8 million are included in debt refinancing and other costs, a component of total interest expense, in the consolidated statements of earnings. The interest for the unsecured bridge loan agreement can vary, not to exceed 7.0 percent per annum. The availability under the unsecured bridge loan agreement was reduced to £1.9 billion, which resulted in the write-off of $10.7 million of unamortized deferred financing costs, which is included in debt refinancing and other costs. 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 redemption resulted in a pre-tax charge in interest expense of $55.8 million, composed of the redemption premiums and the write-offs of related debt financing costs. In December 2015, the company issued $1 billion of 4.375 percent senior notes, €400 million of 3.5 percent senior notes, all due in December 2020, and €700 million of 4.375 percent senior notes, due in December 2023. The company intends to use the proceeds to pay a portion of the cash consideration payable in the proposed Rexam acquisition. Until the Rexam acquisition is consummated, the interest on these senior notes is recorded in debt refinancing and other costs, which totalled $4.6 million. In the event the Rexam acquisition is not consummated on or prior to November 15, 2016, these senior notes will be callable by the lender, requiring the company to effect the redemption of all of the outstanding notes of each series at the applicable redemption price of face value plus accrued and unpaid interest. This would result in use of restricted cash to redeem these senior notes and pay any additional fees. In December 2013, Ball announced the redemption of its outstanding 7.375 percent senior notes due in September 2019 in the amount of $315.4 million. The redemption occurred on January 10, 2014, at a price per note of 108.01 percent of the outstanding principal amount plus accrued interest. The redemption of the bonds resulted in a pretax charge in the first quarter of 2014 of $33.1 million for the call premium and the write off of unamortized financing costs and premiums. These charges are included in debt refinancing and other costs, a component of interest expense, in the consolidated statement of earnings. In June 2013, we amended the senior credit facilities and extended the term from December 2015 to June 2018. In connection with the amendment, we recorded a charge of $0.4 million for the write-off of unamortized financing costs, which is included in debt refinancing and other costs, a component of total interest expense, in the consolidated statements of earnings. In May 2013, Ball: (1) issued $1 billion of 4.00 percent senior notes due in November 2023; (2) tendered for the redemption of its 7.125 percent senior notes originally due in September 2016 in the amount of $375 million, at a redemption price per note of 105.322 percent of the outstanding principal amount plus accrued interest; and (3) repaid the $125 million Term A loan, which was a component of the senior credit facilities. The redemption of the senior notes, all of which occurred in the second quarter of 2013, and the early repayment of the Term A loan resulted in charges of $26.5 million for the tender and call premiums, as well as the write-off of unamortized financing costs and issuance discounts. These charges are included in debt refinancing and other costs, a component of interest expense, in the consolidated statement of earnings. The fair value of the long-term debt was estimated to be $5.2 billion at December 31, 2015, which approximated the carrying value of $5.1 billion. The fair value was estimated to be $3.1 billion at December 31, 2014, which approximated the carrying value of $3.0 billion. The fair value reflects the market rates at each period end for debt with credit ratings similar to the company’s ratings and is classified as Level 2 within the fair value hierarchy. Rates currently available to the company for loans with similar terms and maturities are used to estimate the fair value of long-term debt based on discounted cash flows. Long-term debt obligations outstanding at December 31, 2015, have maturities (net of discounts of $8.5 million related to 2018) of $53.6 million, $47.6 million, $23.5 million, $11.3 million and $1,446.5 million in the years ending December 31, 2016 through 2020, respectively, and $3,525.3 million thereafter. Ball provides letters of credit in the ordinary course of business to secure liabilities recorded in connection with certain self-insurance arrangements. Letters of credit outstanding at December 31, 2015 and 2014, were $15.8 million and $16.3 million, respectively. Interest payments (net of capitalized interest) were $1 30 . 0 million, $168.6 million and $187.5 million in 2015, 2014 and 2013, respectively. The senior notes and senior credit facilities are guaranteed on a full, unconditional and joint and several basis by certain of the company’s wholly owned domestic subsidiaries. Certain foreign denominated tranches of the senior credit facilities are similarly guaranteed by certain of the company’s wholly owned foreign subsidiaries. Note 23 contains further details, as well as required condensed consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries as defined in the senior notes agreements. The U.S. note agreements, bank credit agreement and accounts receivable securitization agreement contain certain restrictions relating to dividend payments, share repurchases, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The most restrictive of the company’s debt covenants require the company to maintain a leverage ratio (as defined) of no greater than 4.00. The company was in compliance with all loan agreements and debt covenants at December 31, 2015 and 2014, and has met all debt payment obligations. |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2015 | |
Taxes on Income | |
Taxes on Income | 14. Taxes on Income The amount of earnings before income taxes is: Years Ended December 31, ($ in millions) 2015 2014 2013 U.S. $ $ $ Foreign $ $ $ The provision for income tax expense is: Years Ended December 31, ($ in millions) 2015 2014 2013 Current U.S. $ $ $ State and local Foreign Total current Deferred U.S. ) State and local ) ) ) Foreign ) ) Total deferred (a) ) ) Tax provision $ $ $ (a) Amounts do not include tax benefits related to discontinued operations of $(0.2) million in 2013. The income tax provision recorded within the consolidated statements of earnings differs from the provision determined by applying the U.S. statutory tax rate to pretax earnings as a result of the following: Years Ended December 31, ($ in millions) 2015 2014 2013 Statutory U.S. federal income tax $ $ $ Increase (decrease) due to: Foreign tax rate differences ) ) ) U.S. state and local taxes, net U.S. taxes on foreign earnings, net of tax credits U.S. manufacturing deduction ) ) ) U.S. research and development tax credits ) ) ) Uncertain tax positions, including interest ) ) ) Company and trust-owned life insurance ) ) ) Other, net ) ) ) Provision for taxes $ $ $ Effective tax rate expressed as a percentage of pretax earnings % % % The 2015 full year effective income tax rate was 13.6 percent compared to 2014 of 23.2 percent. The lower tax rate in 2015 compared to 2014 was primarily due to business consolidation and other activities incurred in the U.S., lower U.S. taxes on foreign earnings, and increased research and development tax credits, partially offset by decreased favorable nonrecurring discrete tax items in the 2015 effective tax rate. The 2014 full year effective income tax rate was 23.2 percent compared to 2013 of 25.6 percent. The lower tax rate in 2014 was primarily the result of a higher foreign tax rate differential, lower U.S. taxes on foreign earnings and the 2014 releases of uncertain tax positions which exceeded those occurring in 2013, partially offset by lower 2014 U.S. research and development tax credits. Ball’s Serbian subsidiary was granted an income tax holiday that applies to only a portion of earnings and expired at the end of 2015. In addition, the Serbian subsidiary was granted tax relief equal to 80 percent of additional local investment with a ten-year period that will expire in 2022. The tax relief may be used to offset tax on earnings not covered by the initial tax holiday and has $18.8 million remaining as of December 31, 2015. In 2011 and 2012, Ball’s Brazilian subsidiary was granted two tax holidays expiring in 2021 and 2022. Under the terms of the holidays, a certain portion of Brazil earnings receive up to a 19 percent tax exemption. The exemption reduced income tax by $16.1 million, $16.4 million and $14.7 million in 2015, 2014, and 2013, respectively. One of Ball’s Polish subsidiaries was granted a tax holiday in 2014 based on new capital investment. The holiday provides up to $33.9 million of tax relief over a ten year period. Due to the U.S. tax status of certain Ball subsidiaries in Canada and the PRC, the company annually provides U.S. taxes on foreign earnings in those subsidiaries, net of any estimated foreign tax credits. Current taxes are also provided on certain other undistributed earnings that are currently taxable in the U.S. Net U.S. taxes primarily provided for Brazil, Canada and PRC earnings in 2015, 2014, and 2013 were $1.7 million, $11.8 million and $26.4 million, respectively. Management’s intention is to indefinitely reinvest undistributed earnings of Ball’s remaining foreign subsidiaries. The indefinite reinvestment assertion is supported by both long-term and short-term forecasts and U.S. financial requirements, including, but not limited to, operating cash flows, capital expenditures, debt maturities and dividends. As a result, the company has not provided deferred taxes on earnings in certain non-U.S. subsidiaries because such earnings are intended to be indefinitely reinvested in its international operations. Retained earnings in non-U.S. subsidiaries totaled $2,021.7 million as of December 31, 2015. It is not practical to estimate the additional taxes that may become payable upon the eventual remittance of these foreign earnings to the U.S.; however, repatriation of these earnings could result in a material increase to the company’s effective tax rate. Net income tax payments were $58.4 million, $163.2 million and $111.4 million in 2015, 2014 and 2013, respectively. The significant components of deferred tax assets and liabilities were: December 31, ($ in millions) 2015 2014 Deferred tax assets: Deferred compensation $ $ Accrued employee benefits Plant closure costs Accrued pensions Inventory and other reserves Net operating losses, foreign tax credits and other tax attributes Unrealized losses on currency exchange and derivative transactions Transaction costs — Other Total deferred tax assets Valuation allowance ) ) Net deferred tax assets Deferred tax liabilities: Property, plant and equipment ) ) Goodwill and other intangible assets ) ) Other ) ) Total deferred tax liabilities ) ) Net deferred tax asset (liability) $ $ The net deferred tax asset (liability) was included in the consolidated balance sheets as follows: December 31, ($ in millions) 2015 2014 Deferred taxes and other current assets $ $ Intangibles and other assets, net Other current liabilities ) ) Deferred taxes and other liabilities ) ) Net deferred tax asset $ $ At December 31, 2015, Ball’s European subsidiaries had net operating loss carryforwards, primarily with no expiration date, of $34.6 million with a related tax benefit of $9.7 million. Ball’s Canadian subsidiaries had net operating loss carryforwards, expiring between 2027 and 2034, of $96.0 million with a related tax benefit of $25.4 million. One of Ball’s Mexican subsidiaries had net operating loss carryforwards of $23.1 million with a related tax benefit of $6.9 million expiring between 2021 and 2025. Due to the uncertainty of ultimate realization, the European and Canadian benefits have been fully offset by valuation allowances while the Mexican net operating losses are expected to be fully utilized. A few of Ball’s U.S. subsidiaries had state net operating loss carryforwards with a tax benefit of $13.9 million that expire between 2016 and 2034. At December 31, 2015, the company had foreign tax credit carryforwards of $47.1 million expiring between 2018 and 2024; however, due to the uncertainty of realization, the benefits of state net operating losses and foreign tax credit carryforwards have been fully offset by valuation allowances. A rollforward of the unrecognized tax benefits related to uncertain income tax positions at December 31 follows: ($ in millions) 2015 2014 2013 Balance at January 1 $ $ $ Additions based on tax positions related to the current year Additions for tax positions of prior years Reductions for settlements ) — ) Reductions due to lapse of statute of limitations ) ) ) Effect of foreign currency exchange rates ) ) Balance at December 31 $ $ $ The annual provisions for income taxes included tax benefits related to uncertain tax positions, including interest, of $3.6 million, $7.9 million and $3.4 million in 2015, 2014 and 2013, respectively. At December 31, 2015, the amount of unrecognized tax benefits that, if recognized, would reduce tax expense was $57.2 million. Within the next 12 months, it is reasonably possible that unrecognized tax benefits may decrease by as much as $0.1 million as a result of settlements with various taxing jurisdictions. The company and its subsidiaries file various income tax returns in the U.S. federal, various state, local and foreign jurisdictions. The U.S. federal statute of limitations is closed for years prior to 2012. With a few exceptions, the company is no longer subject to examination by state and local tax authorities for years prior to 2008. The company’s significant non-U.S. filings are in Germany, France, the United Kingdom, the Netherlands, Poland, Serbia, Switzerland, the PRC, Canada, Brazil, the Czech Republic, Mexico and Argentina. At December 31, 2015, the company is either under examination or has been notified of a pending examination by tax authorities in Germany, the United Kingdom, Hong Kong, Canada and various U.S. states. The company recognizes the accrual of interest and penalties related to unrecognized tax benefits in income tax expense. Ball recognized $1.6 million of tax benefit, $1.3 million of tax expense and $2.7 million of tax expense in 2015, 2014 and 2013, respectively, for potential interest on these items. At December 31, 2015 and 2014, the accrual for uncertain tax positions included potential interest expense of $9.2 million and $11.2 million, respectively. No penalties have been accrued. |
Employee Benefit Obligations
Employee Benefit Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Obligations | |
Employee Benefit Obligations | 15. Employee Benefit Obligations December 31, ($ in millions) 2015 2014 Underfunded defined benefit pension liabilities $ $ Less current portion and prepaid pension assets ) ) Long-term defined benefit pension liabilities Retiree medical and other postemployment benefits Deferred compensation plans Other $ $ The company’s pension plans cover U.S., Canadian and European employees meeting certain eligibility requirements. The defined benefit plans for salaried employees, as well as those for hourly employees in Germany and the United Kingdom, provide pension benefits based on employee compensation and years of service. Plans for North American hourly employees provide benefits based on fixed rates for each year of service. While the German plans are not funded, the company maintains book reserves, and annual additions to the reserves are generally tax deductible. With the exception of the German plans, our policy is to fund the defined benefit plans in amounts at least sufficient to satisfy statutory funding requirements taking into consideration what is currently deductible under existing tax laws and regulations. The company also participates in multi-employer defined benefit plans for which Ball is not the sponsor. The aggregated annual 2015 expense for these plans of $1.3 million, which approximated the total annual funding, is included in the summary of net periodic benefit cost. The risks of participating in multi-employer pension plans are different from single-employer plans. Assets contributed to a multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. In the event that Ball withdraws from participation in one of these plans, then applicable law could require the company to make additional lump-sum contributions to the plan. The company’s withdrawal liability for any multi-employer defined benefit pension plan would depend on the extent of the plan’s funding of vested benefits. Additionally, if a multi-employer defined benefit pension plan fails to satisfy certain minimum funding requirements, the IRS may impose a nondeductible excise tax of 5 percent on the amount of the accumulated funding deficiency for those employers contributing to the plan. In 2014, the company updated the mortality tables used to calculate its U.S. defined benefit pension and other postretirement benefit liabilities. In October 2014, the Society of Actuaries’ Retirement Plans Experience Committee (RPEC) released new mortality tables known as RP 2014. The new tables released by the RPEC reflected substantial life expectancy improvements. The company evaluated the new mortality tables and chose to value its U.S. defined benefit pension and other postretirement benefit liabilities using an alternative assumption of future mortality based on past history that is more representative of the company’s expectations around future improvements in mortality rates for the plan participants. The company’s assumptions reflect anticipated future improvements in mortality rates. This alternative assumption was determined to be credible by the company’s actuaries and meets professional actuarial standards. Defined Benefit Pension Plans An analysis of the change in benefit accruals for 2015 and 2014 follows: December 31, 2015 2014 ($ in millions) U.S. Foreign Total U.S. Foreign Total Change in projected benefit obligation: Benefit obligation at prior year end $ $ $ $ $ $ Service cost Interest cost Benefits paid ) ) ) ) ) ) Net actuarial (gains) losses ) ) ) Effect of exchange rates — ) ) — ) ) Settlements/curtailments/special termination — ) — ) Plan amendments and other ) ) — ) Benefit obligation at year end Change in plan assets: Fair value of assets at prior year end Actual return on plan assets ) ) Employer contributions Contributions to unfunded German plans (a) — — Benefits paid ) ) ) ) ) ) Effect of exchange rates — ) ) — ) ) Settlements — — — ) — ) Fair value of assets at end of year Underfunded status $ ) $ ) (a) $ ) $ ) $ ) (a) $ ) (a) The German plans are unfunded and the liability is included in the company’s consolidated balance sheets. Benefits are paid directly by the company to the participants. The German plans represented $317.1 million and $393.9 million of the total unfunded status at December 31, 2015 and 2014, respectively. Amounts recognized in the consolidated balance sheets for the funded status consisted of: December 31, 2015 2014 ($ in millions) U.S. Foreign Total U.S. Foreign Total Prepaid pension cost $ — $ $ $ — $ $ Defined benefit pension liabilities ) ) ) ) ) ) $ ) $ ) $ ) $ ) $ ) $ ) Amounts recognized in accumulated other comprehensive earnings (loss) consisted of: December 31, 2015 2014 ($ in millions) U.S. Foreign Total U.S. Foreign Total Net actuarial loss $ $ $ $ $ $ Net prior service cost (credit) ) ) Tax effect and currency exchange rates ) ) ) ) ) ) $ $ $ $ $ $ The accumulated benefit obligation for all U.S. defined benefit pension plans was $1,301.5 million and $1,355.2 million at December 31, 2015 and 2014, respectively. The accumulated benefit obligation for all foreign defined benefit pension plans was $592.5 million and $675.1 million at December 31, 2015 and 2014, respectively. Following is the information for defined benefit plans with an accumulated benefit obligation in excess of plan assets: December 31, 2015 2014 ($ in millions) U.S. Foreign Total U.S. Foreign Total Projected benefit obligation $ $ $ $ $ $ Accumulated benefit obligation Fair value of plan assets (a) (a) (a) The German plans are unfunded and, therefore, there is no fair value of plan assets associated with them. The unfunded status of those plans was $317.1 million and $393.9 million at December 31, 2015 and 2014, respectively. Components of net periodic benefit cost were: Years Ended December 31, 2015 2014 2013 ($ in millions) U.S. Foreign Total 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 (gains), including special termination benefits — — Net periodic benefit cost for Ball-sponsored plans Multi-employer plans: Net periodic benefit cost, excluding curtailment loss — — — Curtailment and settlement losses (gains) — — — — — — — Net periodic benefit cost for multi-employer plans — — — Total net periodic benefit cost $ $ $ $ $ $ $ $ $ In September 2014, the company executed a lump sum buyout offer to certain terminated vested pension plan participants in its U.S. defined benefit pension plans. The offer provided participants with a one-time election to receive a lump-sum payout in full settlement of their remaining pension benefit. The company recorded a non-cash charge of $45.3 million for the settlement of its pension benefit obligations in connection with this offer in 2014, based on pension asset values and liabilities at the time of the settlement. Curtailment losses in 2013 are related to the closure of the company’s Elgin, Illinois, facility and the migration of certain of the company’s Weirton, West Virginia, hourly employees from a multi-employer defined benefit pension plan to a Ball-sponsored defined benefit pension plan as of January 1, 2014. Further details are available in Note 5. The estimated actuarial net gain (loss) and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive earnings (loss) into net periodic benefit cost during 2016 are a loss of $37.4 million and a gain of $1.4 million, respectively. Contributions to the company’s defined benefit pension plans, not including the unfunded German plans, are expected to be in the range of $31 million in 2016. This estimate may change based on changes in the Pension Protection Act and actual plan asset performance and available company cash flow, among other factors. Benefit payments related to these plans are expected to be $94.1 million, $97.4 million, $100.9 million, $104.5 million and $108.6 million for the years ending December 31, 2016 through 2020, respectively, and a total of $584 million for the years 2021 through 2025. Payments to participants in the unfunded German plans are expected to be approximately $16 million to $18 million in each of the years 2016 through 2020 and a total of $75 million for the years 2021 through 2025. Weighted average assumptions used to determine benefit obligations for the North American plans at December 31 were: U.S. Canada 2015 2014 2013 2015 2014 2013 Discount rate % % % % % % Rate of compensation increase % % % % % % Weighted average assumptions used to determine benefit obligations for the European plans at December 31 were: United Kingdom Germany 2015 2014 2013 2015 2014 2013 Discount rate % % % % % % Rate of compensation increase % % % % % % Pension increase % % % % % % The discount and compensation increase rates used above to determine the benefit obligations at December 31, 2015, will be used to determine net periodic benefit cost for 2016. A reduction of the expected return on pension assets assumption by one quarter of a percentage point would result in an approximate $3.4 million increase in 2016 pension expense, while a quarter of a percentage point reduction in the discount rate applied to the pension liability would result in estimated additional pension expense of $4.8 million in 2016. Weighted average assumptions used to determine net periodic benefit cost for the North American plans for the years ended December 31 were: U.S. Canada 2015 2014 2013 2015 2014 2013 Discount rate % % % % % % Rate of compensation increase % % % % % % Expected long-term rate of return on assets % % % % % % Weighted average assumptions used to determine net periodic benefit cost for the European plans for the years ended December 31 were: United Kingdom Germany 2015 2014 2013 2015 2014 2013 Discount rate % % % % % % Rate of compensation increase % % % % % % Pension increase % % % % % % Expected long-term rate of return on assets % % % N/A N/A N/A Current financial accounting standards require that the discount rates used to calculate the actuarial present value of pension and other postretirement benefit obligations reflect the time value of money as of the measurement date of the benefit obligation and reflect the rates of return currently available on high quality fixed-income securities whose cash flows (via coupons and maturities) match the timing and amount of future benefit payments of the plan. In addition, changes in the discount rate assumption should reflect changes in the general level of interest rates. In selecting the U.S. discount rate for December 31, 2015, several benchmarks were considered, including Moody’s long-term corporate bond yield for A bonds, the Citigroup Pension Liability Index, the JP Morgan 15+ year corporate bond yield for A bonds and the Merrill Lynch 15+ year corporate bond yield for A bonds. In addition, the expected cash flows from the plans were modeled relative to the Citigroup Pension Discount Curve and matched to cash flows from a portfolio of bonds rated A or better. When determining the appropriate discount rate, the company contemplated the impact of lump sum payment options under its U.S. plans when considering the appropriate yield curve. In Canada the markets for locally denominated high-quality, longer term corporate bonds are relatively thin. As a result, the approach taken in Canada was to use yield curve spot rates to discount the respective benefit cash flows and to compute the underlying constant bond yield equivalent. The Canadian discount rate at December 31, 2015, was selected based on a review of the expected benefit payments for each of the Canadian defined benefit plans over the next 60 years and then discounting the resulting cash flows to the measurement date using the AA corporate bond spot rates to determine the equivalent level discount rate. In the United Kingdom and Germany, the company and its actuarial consultants considered the applicable iBoxx 15+ year AA corporate bond yields for the respective markets and determined a rate consistent with those expectations. In all countries, the discount rates selected for December 31, 2015, were based on the range of values obtained from cash flow specific methods, together with the changes in the general level of interest rates reflected by the benchmarks. The assumption related to the expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested to provide for the benefits over the life of the plans. The assumption was based upon Ball’s pension plan asset allocations, investment strategies and the views of investment managers and other large pension plan sponsors. Some reliance was placed on historical asset returns of our plans. An asset-return model was used to project future asset returns using simulation and asset class correlation. The analysis included expected future risk premiums, forward-looking return expectations derived from the yield on long-term bonds and the price earnings ratios of major stock market indexes, expected inflation and real risk-free interest rate assumptions and the fund’s expected asset allocation. The expected long-term rates of return on assets were calculated by applying the expected rate of return to a market related value of plan assets at the beginning of the year, adjusted for the weighted average expected contributions and benefit payments. The market related value of plan assets used to calculate the expected return was $1,395.3 million for 2015, $1,470.9 million for 2014 and $1,238.5 million for 2013. For pension plans, accumulated actuarial gains and losses in excess of a 10 percent corridor and the prior service cost are amortized over the average remaining service period of active participants or over the average life expectancy for plans with significant inactive participants. Defined Benefit Pension Plan Assets Policies and Allocation Information Investment policies and strategies for the plan assets in the U.S., Canada and the United Kingdom are established by pension investment committees of the company and its relevant subsidiaries and include the following common themes: (1) to provide for long-term growth of principal without undue exposure to risk, (2) to minimize contributions to the plans, (3) to minimize and stabilize pension expense and (4) to achieve a rate of return above the market average for each asset class over the long term. The pension investment committees are required to regularly, but no less frequently than once annually, review asset mix and asset performance, as well as the performance of the investment managers. Based on their reviews, which are generally conducted quarterly, investment policies and strategies are revised as appropriate. Target asset allocations in the U.S. and Canada are set using a minimum and maximum range for each asset category as a percent of the total funds’ market value. Assets contributed to the United Kingdom plans are invested using established percentages. Following are the target asset allocations established as of December 31, 2015: U.S. Canada United Kingdom(c) Cash and cash equivalents 0-10% 0-2% % Equity securities 10-75% (a) 8-12% % Fixed income securities 25-70% (b) 88-92% % Absolute return investments — — % Alternative investments 0-35% — % (a) Equity securities may consist of: (1) up to 25 percent large cap equities, (2) up to 10 percent mid cap equities, (3) up to 10 percent small cap equities, (4) up to 35 percent foreign equities and (5) up to 35 percent special equities. Holdings in Ball Corporation common stock or Ball bonds cannot exceed 5 percent of the trust’s assets. (b) Debt securities may include up to 10 percent non-investment grade bonds, up to 10 percent bank loans and up to 15 percent international bonds. (c) The percentages provided reflect the asset allocation percentage at December 31, 2015. The portfolio mix is expected to be adjusted over time toward more fixed-income securities. The actual weighted average asset allocations for Ball’s defined benefit pension plans, which individually were within the established targets for each country for that year, were as follows at December 31: 2015 2014 Cash and cash equivalents % % Equity securities % % Fixed income securities % % Alternative investments % % % % Fair Value Measurements of Pension Plan Assets Following is a description of the valuation methodologies used for pension assets measured at fair value: Cash and cash equivalents: Consist of cash on deposit with brokers and short-term U.S. Treasury money market funds and are net of receivables and payables for securities traded at the period end but not yet settled. All cash and cash equivalents are stated at cost, which approximates fair value. Corporate equity securities: Valued at the closing price reported on the active market on which the individual security is traded. U.S. government and agency securities: Valued using the pricing of similar agency issues, live trading feeds from several vendors and benchmark yields. Corporate bonds and notes: Valued using market inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and reference data including market research publications. Inputs may be prioritized differently at certain times based on market conditions. Commingled funds: The shares held are valued at the net asset value (NAV) at year end. Limited partnerships and other: Certain of the partnership investments receive fair market valuations on a quarterly basis. Certain other partnerships invest in market-traded securities, both on a long and short basis. These investments are valued using quoted market prices. For the partnership that invests in timber properties, a detailed valuation is performed by an independent appraisal firm every three years. In the interim years, the investment manager updates the independently prepared valuation for property value changes, timber growth, harvesting, etc. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The levels assigned to the defined benefit plan assets are summarized in the tables below: December 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total U.S. pension assets, at fair value: Cash and cash equivalents $ $ $ — $ Corporate equity securities: Consumer discretionary — — Financials — — Healthcare — — Industrials — — Information technology — — Other — U.S. government and agency securities: FHLMC mortgage backed securities — — FNMA mortgage backed securities — — Treasury bonds — — Other — Corporate bonds and notes: Financials — — Industrials — Oil and gas — — Private placement — — Other — — Commingled funds International — Other — Limited partnerships and other — Total assets $ $ $ $ December 31, 2014 ($ in millions) Level 1 Level 2 Level 3 Total U.S. pension assets, at fair value: Cash and cash equivalents $ $ $ — $ Corporate equity securities: Consumer discretionary — — Industrials — — Information technology — — Other — U.S. government and agency securities: FHLMC mortgage backed securities — — FNMA mortgage backed securities — — Other — Corporate bonds and notes: Financials — — Oil and gas — — Private placement — — Other — — Commingled funds International — Other — Limited partnerships and other — Total assets $ $ $ $ The following is a reconciliation of the U.S. Level 3 assets for the two years ended December 31, 2015 (dollars in millions): Balance at December 31, 2013 $ Actual return on plan assets relating to assets still held at the reporting date Purchases Sales ) Balance at December 31, 2014 Actual return on plan assets relating to assets still held at the reporting date Purchases Sales ) Balance at December 31, 2015 $ December 31, ($ in millions) 2015 2014 Canadian pension assets, at fair value (all Level 2): Equity commingled funds $ $ Fixed income commingled funds Fixed income securities Total assets $ $ December 31, ($ in millions) 2015 2014 U.K. pension assets, at fair value (all Level 2): Cash and cash equivalents $ $ — Equity commingled funds Fixed income commingled funds Absolute return funds Alternative investments Net assets $ $ Other Postemployment Benefits The company sponsors postretirement health care and life insurance plans for substantially all U.S. and Canadian employees. Employees may also qualify for long-term disability, medical and life insurance continuation and other postemployment benefits upon termination of active employment prior to retirement. All of the Ball-sponsored postretirement health care and life insurance plans are unfunded and, with the exception of life insurance benefits, are self-insured. In Canada, the company provides supplemental medical and other benefits in conjunction with Canadian provincial health care plans. Most U.S. salaried employees who retired prior to 1993 are covered by noncontributory defined benefit medical plans with capped lifetime benefits. Ball provides a fixed subsidy toward each retiree’s future purchase of medical insurance for U.S. salaried and substantially all nonunion hourly employees retiring after January 1, 1993. Life insurance benefits are noncontributory. Ball has no commitments to increase benefits provided by any of the postemployment benefit plans. An analysis of the change in other postretirement benefit accruals for 2015 and 2014 follows: ($ in millions) 2015 2014 Change in benefit obligation: Benefit obligation at prior year end $ $ Service cost Interest cost Benefits paid ) ) Net actuarial (gain) loss ) Special termination benefits — Effect of exchange rates and other ) ) Benefit obligation at year end $ $ Components of net periodic benefit cost were: Years Ended December 31, ($ in millions) 2015 2014 2013 Service cost $ $ $ Interest cost Amortization of prior service cost ) ) ) Recognized net actuarial loss (gain) ) ) ) Special termination benefits — Net periodic benefit cost $ $ $ Approximately $2.5 million of estimated net actuarial gain and $0.6 million of prior service benefit will be amortized from accumulated other comprehensive earnings (loss) into net periodic benefit cost during 2016. The assumptions used for the determination of benefit obligations and net periodic benefit cost were the same as those used for the U.S. and Canadian defined benefit pension plans. For other postretirement benefits, accumulated actuarial gains and losses and prior service cost are amortized over the average remaining service period of active participants. For the U.S. health care plans at December 31, 2015, a 7.5 percent health care cost trend rate was used for pre-65 and post-65 benefits, and trend rates were assumed to decrease to 5 percent in 2021 and remain at that level thereafter. For the Canadian plans, a 4.5 percent health care cost trend rate was used, which was assumed to increase to 5 percent by 2018 and remain at that level in subsequent years. Benefit payment caps exist in many of the company’s health care plans. Health care cost trend rates can have an effect on the amounts reported for the health care plan. A one-percentage point increase in assumed health care cost trend rates would increase the total of service and interest cost by $0.2 million and the postretirement benefit obligation by $2.9 million. A one-percentage point decrease would decrease the total of service and interest cost by $0.2 million and the postretirement benefit obligation by $2.8 million. Deferred Compensation Plans Certain management employees may elect to defer the payment of all or a portion of their annual incentive compensation into the company’s deferred compensation plan and/or the company’s deferred compensation stock plan. The employee becomes a general unsecured creditor of the company with respect to any amounts deferred. Amounts deferred into the deferred compensation stock plan receive a 20 percent company match with a maximum match of $20,000 per year. Amounts deferred into the deferred compensation stock plan are represented in the participant’s account as stock units, with each unit having a value equivalent to one share of Ball’s common stock. Participants in the deferred compensation stock plan are allowed to reallocate a prescribed number of units to other notional investment funds subject to specified time constraints. Other Benefit Plans The company matches U.S. salaried employee contributions to the 401(k) plan with shares of Ball common stock up to 100 percent of the first 3 percent of a participant’s salary plus 50 percent of the next 2 percent. The expense associated with the company match amounted to $23.6 million, $23.6 million and $23.5 million for 2015, 2014 and 2013, respectively. In addition, substantially all employees within the company’s aerospace and technologies segment who participate in Ball’s 401(k) plan may receive a performance-based matching cash contribution of up to 4 percent of base salary. The company recognized no additional compensation expenses related to this program in 2015 and 2013 and $4.7 million of additional compensation expense in 2014. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity | |
Shareholders' Equity | 16. Shareholders’ Equity At December 31, 2015, the company had 550 million shares of common stock and 15 million shares of preferred stock authorized, both without par value. Preferred stock includes 550,000 authorized but unissued shares designated as Series A Junior Participating Preferred Stock. Under the company’s shareholder Rights Agreement dated July 26, 2006, as amended, one half of a preferred stock purchase right (Right) is attached to each outstanding share of Ball Corporation common stock. Subject to adjustment, each Right entitles the registered holder to purchase from the company one one-thousandth of a share of Series A Junior Participating Preferred Stock at an exercise price of $185 per Right. Subject to certain limited exceptions for passive investors, if a person or group acquires 10 percent or more of the company’s outstanding common stock (or upon occurrence of certain other events), the Rights (other than those held by the acquiring person) become exercisable and generally entitle the holder to purchase shares of Ball Corporation common stock at a 50 percent discount. The Rights, which expire in 2016, are redeemable by the company at a redemption price of $0.001 per Right and trade with the common stock. Exercise of such Rights would cause substantial dilution to a person or group attempting to acquire control of the company without the approval of Ball’s board of directors. The Rights would not interfere with any merger or other business combinations approved by the board of directors. The company’s share repurchases, net of issuances, totaled $99.5 million in 2015, $360.1 million in 2014 and $398.8 million in 2013. In March 2014, in a privately negotiated transaction, Ball entered into an accelerated share repurchase agreement to buy $100 million of its common shares using cash on hand and available borrowings. The company advanced the $100 million on March 7, 2014, and received 1,538,740 shares, which represented 85 percent of the total shares as calculated using the closing price on March 3, 2014. The agreement was settled in June 2014, and the company received an additional 245,196 shares, which represented a weighted average price of $56.06 for the entire contract price. Accumulated Other Comprehensive Earnings (Loss) The activity related to accumulated other comprehensive earnings (loss) was as follows: ($ in millions) Foreign Currency Translation Pension and Other Postretirement Benefits (Net of Tax) Effective Derivatives (Net of Tax) Accumulated Other Comprehensive Earnings (Loss) December 31, 2013 $ $ ) $ ) $ ) Other comprehensive earnings (loss) before reclassifications ) ) ) Amounts reclassified from accumulated other comprehensive earnings (loss) — December 31, 2014 ) ) ) ) Other comprehensive earnings (loss) before reclassifications ) ) ) Amounts reclassified from accumulated other comprehensive earnings (loss) — December 31, 2015 $ ) $ ) $ ) $ ) The following table provides additional details of the amounts recognized into net earnings from accumulated other comprehensive earnings (loss): ($ in millions) December 31, 2015 2014 2013 Gains (losses) on cash flow hedges: Commodity contracts recorded in net sales $ $ ) $ Commodity contracts and currency exchange contracts recorded in cost of sales ) ) ) Currency exchange contracts recorded in SG&A expense — — Interest rate contracts recorded in interest expense ) — ) Total before tax effect ) ) $ ) Tax benefit (expense) on amounts reclassified into earnings Recognized gain (loss) $ ) $ ) $ ) Amortization of pension and other postretirement benefits (a) : Prior service income (cost) $ $ $ Actuarial gains (losses) ) ) ) Effect of pension settlement — ) — Total before tax effect ) ) ) Tax benefit (expense) on amounts reclassified into earnings Recognized gain (loss) $ ) $ ) $ ) (a) These components are included in the computation of net periodic benefit cost included in Note 15. Noncontrolling Interest Ball acquired the remaining interests in its Latapack-Ball joint venture in Brazil for consideration of approximately 5.7 million treasury shares of Ball common stock, valued at $403.0 million, and $17.4 million in cash. The accounting guidance requires changes in noncontrolling interests that do not result in a change of control to be recorded as an equity transaction. Where there is a difference between the fair value of consideration paid and the carrying value of the noncontrolling interest, it is recorded to common stock. The difference of $220.2 million between the noncontrolling interest carrying value of $200.2 million at the time of acquisition and the fair value of the consideration paid of $420.4 million was recorded as a decrease to common stock. The acquisition of the joint venture company was completed in December 2015, and Latapack-Ball is now a wholly owned subsidiary of Ball Corporation. |
Stock-Based Compensation Progra
Stock-Based Compensation Programs | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation Programs | |
Stock-Based Compensation Programs | 17. 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 on the date of grant. In the case of stock options, payment must be made by the employee at the time of exercise in cash or with shares of stock owned by the employee, which are valued at fair market value on the date exercised. For SSARs, the employee receives the share equivalent of the difference between the fair market value on the date exercised and the exercise price of the SSARs exercised. In general, options and SSARs are exercisable in four equal installments commencing one year from the date of grant and terminating 10 years from the date of grant. A summary of stock option activity for the year ended December 31, 2015, follows: Outstanding Options and SSARs Number of Shares Weighted Average Exercise Price Beginning of year $ Granted Exercised ) Canceled/forfeited ) End of period Vested and exercisable, end of period $ Reserved for future grants The weighted average remaining contractual term for all options and SSARs outstanding at December 31, 2015, was 5.3 years and the aggregate intrinsic value (difference in exercise price and closing price at that date) was $342.3 million. The weighted average remaining contractual term for options and SSARs vested and exercisable at December 31, 2015, was 4.1 years and the aggregate intrinsic value was $287.4 million. The company received $21.6 million, $22.9 million and $17.0 million from options exercised during 2015, 2014 and 2013, respectively, and the intrinsic value associated with these exercises was $32.9 million, $31.4 million and $17.1 million for the same periods, respectively. The tax benefit associated with the company’s stock compensation programs was $21.3 million for 2015, and was reported as other financing activities in the consolidated statement of cash flows. The total fair value of options and SSARs vested during 2015, 2014 and 2013 was $11.7 million, $13.3 million and $11.4 million, respectively. These options and SSARs cannot be traded in any equity market. However, based on the Black-Scholes option pricing model, options and SSARs granted in 2015, 2014 and 2013 have estimated weighted average fair values at the date of grant of $14.20 per share, $9.81 per share and $8.69 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 equal the fair value estimated at the grant date. The fair values were estimated using the following weighted average assumptions: 2015 Grants 2014 Grants 2013 Grants Expected dividend yield Expected stock price volatility Risk-free interest rate Expected life of options (in years) 5.85 years 5.50 years 5.50 years In addition to stock options and SSARs, the company issues to certain employees restricted shares and restricted stock units, which vest over various periods. Other than the performance-contingent grants discussed below, such restricted shares and restricted stock units generally vest in equal installments over five years. Compensation cost is recorded based upon the fair value of the shares at the grant date. Following is a summary of restricted stock activity for the year ended December 31, 2015: Number of Shares/Units Weighted Average Grant Price Beginning of year $ Granted Vested ) Canceled/forfeited ) End of period In January 2015, 2014 and 2013, the company’s board of directors granted 116,559, 143,305 and 148,875 performance-contingent restricted stock units (PCEQs), respectively, to key employees. These PCEQs vest three years from the date of grant, and the number of shares available at the vesting date are based on the company’s increase in economic valued added (EVA®) dollars compared to the EVA® dollars generated in the calendar year prior to the grant and 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 basis, the company reassesses the probability of the goals being met and adjusts compensation expense as appropriate. The expense associated with the performance-contingent grants totaled $7.1 million, $6.9 million and $7.6 million in 2015, 2014 and 2013, respectively. For the years ended December 31, 2015, 2014 and 2013, the company recognized in selling, general and administrative expenses pretax expense of $24.7 million ($15.4 million after tax), $25.1 million ($15.6 million after tax) and $24.5 million ($14.9 million after tax), respectively, for share-based compensation arrangements. At December 31, 2015, there was $35.0 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements. This cost is expected to be recognized in earnings over a weighted average period of 2.5 years. In connection with the employee stock purchase plan, the company contributes 20 percent of each participating employee’s monthly payroll deduction up to a maximum contribution of $500 toward the purchase of Ball Corporation common stock. Company contributions for this plan were $3.5 million in 2015, 2014 and 2013. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share | |
Earnings Per Share | 18. Earnings Per Share Years Ended December 31, ($ in millions, except per share amounts; shares in thousands) 2015 2014 2013 Net earnings attributable to Ball Corporation $ $ $ Basic weighted average common shares Effect of dilutive securities Weighted average shares applicable to diluted earnings per share Basic earnings per share $ $ $ Diluted earnings per share $ $ $ Certain outstanding options and SSARs were excluded from the diluted earnings per share calculation because they were anti-dilutive (i.e., the sum of the proceeds, including the unrecognized compensation and windfall tax benefits, exceeded the average closing stock price for the period). The options and SSARs excluded totaled 1.2 million in 2015 and 1.3 million in 2013. There were no options or SSARs excluded in 2014. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments and Risk Management | |
Financial Instruments and Risk Management | 19. Financial Instruments and Risk Management Policies and Procedures The company employs established risk management policies and procedures, which seek to reduce the company’s commercial risk exposure to fluctuations in commodity prices, interest rates, currency exchange rates and prices of the company’s common stock with regard to common share repurchases and the company’s deferred compensation stock plan. However, there can be no assurance that these policies and procedures will be successful. Although the instruments utilized involve varying degrees of credit, market and interest risk, the counterparties to the agreements are expected to perform fully under the terms of the agreements. The company monitors counterparty credit risk, including lenders, on a regular basis, but Ball cannot be certain that all risks will be discerned or that its risk management policies and procedures will always be effective. Additionally, in the event of default under the company’s master derivative agreements, the non-defaulting party has the option to set-off any amounts owed with regard to open derivative positions. Commodity Price Risk Aluminum The company manages commodity price risk in connection with market price fluctuations of aluminum ingot through two different methods. First, the company enters into container sales contracts that include aluminum ingot-based pricing terms that generally reflect the same price fluctuations under commercial purchase contracts for aluminum sheet. The terms include fixed, floating or pass-through aluminum ingot component pricing. Second, the company uses certain derivative instruments such as option and forward contracts as economic and cash flow hedges of commodity price risk where there are material differences between sales and purchase contracted pricing and volume. At December 31, 2015, the company had aluminum contracts limiting its aluminum exposure with notional amounts of approximately $509 million, of which approximately $436 million received hedge accounting treatment. The aluminum contracts, which are recorded at fair value, include economic derivative instruments that are undesignated, as well as cash flow hedges that offset sales and purchase contracts of various terms and lengths. Cash flow hedges relate to forecasted transactions that expire within the next three years. Included in shareholders’ equity at December 31, 2015, within accumulated other comprehensive earnings (loss) is a net after-tax loss of $12.7 million associated with these contracts. A net loss of $9.5 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 December 31, 2015, included pay-fixed interest rate swaps, which effectively convert variable rate obligations to fixed-rate instruments. At December 31, 2015, the company had outstanding interest rate swap contracts, excluding those related to the Rexam acquisition, with notional amounts of approximately $115 million paying fixed rates expiring within the next five years. The after-tax loss included in shareholders’ equity at December 31, 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 December 31, 2015, the company had outstanding interest rate swaps with notional amounts totaling approximately $200 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 2015, the company terminated interest rate swap contracts with an aggregate notional amount of $923 million (€850 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 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 2015 associated with these contracts was $15.9 million. The contracts outstanding at the close of 2015, expire within the next four 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 from changes associated with currency exchange rate changes through the use of various derivative contracts. In addition, at times the company manages earnings translation volatility through the use of currency option strategies, and the change in the fair value of those options is recorded in the company’s net earnings. The company’s currency translation risk results from the currencies in which we transact business. The company faces currency exposures in our global operations as a result of various factors including intercompany currency denominated loans, selling our products in various currencies, purchasing raw materials and equipment in various currencies and tax exposures not denominated in the functional currency. Sales contracts are negotiated with customers to reflect cost changes and, where there is not an exchange pass-through arrangement, the company uses forward and option contracts to manage significant currency exposures. At December 31, 2015, the company had outstanding exchange forward contracts and option contracts, excluding those for the Rexam acquisition, with notional amounts totaling approximately $695 million. Approximately $1.3 million of net after-tax gain related to these contracts is included in accumulated other comprehensive earnings at December 31, 2015, of which a net loss of $0.4 million is expected to be recognized in the consolidated statement of earnings during the next 12 months. The contracts outstanding at December 31, 2015, expire within the next five years. 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 December 31, 2015, the company had outstanding collar and option contracts with notional amounts totaling approximately £1.8 billion ($2.7 billion). These contracts were not designated as hedges, and therefore, changes in the fair value of these contracts are recognized in the consolidated statements of earnings in business consolidation and other activities (see Note 5). During 2015, the company recognized a loss of $41.0 million associated with these contracts. The contracts outstanding at December 31, 2015, expire within the next year. In connection with the December 2015 issuance of $1 billion of U.S. dollar senior notes due 2020, the company executed cross-currency swaps to convert the fixed-rate U.S. dollar issuance to a fixed-rate euro issuance for the life of the notes to more effectively match the future cash flows of our business. The cross-currency swaps have a notional amount of $1.0 billion and expire within five years. These contracts were not designated as hedges, and therefore, changes in the fair value of these contracts are recognized as business consolidation and other activities. During 2015, the company recognized a loss of $7.4 million associated with these contracts. See Note 5 for additional information. In connection with the December 2015 issuance of €1.1 billion of senior notes (€400 million due 2020 and €700 million due 2023), the company subsequently converted the net euro proceeds to British pounds using new and existing currency derivative positions at an average exchange rate of approximately 1.37. The company elected to restrict the funds in an acquisition escrow account invested in British money market mutual funds denominated in pounds. At December 31, 2015, £792 million ($1,167 million) was invested in the acquisition escrow accounts. Changes in the U.S. dollar and the British pound exchange rate will result in gains or losses to the acquisition escrow account, recognized as business consolidation and other activities. Subsequent to December 31, 2015, the company converted the U.S. dollars into British pounds. The British pound acquisition escrow account will be used to pay the cash component of the proposed acquisition price of Rexam. Common Stock Price Risk The company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is marked to fair value using the company’s closing stock price at the end of the related reporting period. Based on current share levels in the program, each $1 change in the company’s stock price has an impact of $1.5 million on pretax earnings. The company entered into a total return swap to reduce the company’s earnings exposure to these fair value fluctuations that will be outstanding until March 2016 and has a notional value of 1 million shares. As of December 31, 2015, the fair value of the swap was a $2.9 million gain. All gains and losses on the total return swap are recorded in the consolidated statement of earnings in selling, general and administrative expenses. Collateral Calls The company’s agreements with its financial counterparties require the company to post collateral in certain circumstances when the negative mark to fair value of the contracts exceeds specified levels. Additionally, the company has collateral posting arrangements with certain customers on these derivative contracts. The cash flows of the margin calls are shown within the investing section of the company’s consolidated statements of cash flows. As of December 31, 2015, the aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position was $69.2 million and no 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 $12.4 million and no collateral was required to be posted. Fair Value Measurements Ball has classified all applicable financial derivative assets and liabilities as Level 2 within the fair value hierarchy as of December 31, 2015 and 2014, and presented those values in the table below. The company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. December 31, 2015 December 31, 2014 ($ 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 Other contracts — — — — Total current derivative contracts $ $ $ $ $ $ Commodity contracts $ $ — $ $ $ $ Foreign currency contracts — — — — Interest rate contracts — — Total noncurrent derivative contracts $ $ $ $ $ $ Liabilities: Commodity contracts $ $ $ $ $ $ Foreign currency contracts — Interest rate and other contracts — Total current derivative contracts $ $ $ $ $ $ Commodity contracts $ $ — $ $ $ $ Interest rate 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 December 31, 2015, has not identified any circumstances requiring that the reported values of our financial instruments be adjusted. The following table provides the effects of derivative instruments in the consolidated statement of earnings and on accumulated other comprehensive earnings (loss): Years Ended December 31, 2015 2014 2013 ($ in millions) Location of Gain (Loss) Recognized in Earnings on Derivatives Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) - Gain (Loss) Gain (Loss) on Derivatives not Designated as Hedge Instruments Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) - Gain (Loss) Gain (Loss) on Derivatives not Designated as Hedge Instruments Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) - Gain (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 — ) — — — — Cross currency swaps - manage exposure for proposed acquisition of Rexam Business consolidation and other activities — ) — — — — Equity and inflation contracts Selling, general and administrative — — ) — Total $ ) $ ) $ ) $ ) $ ) $ The changes in accumulated other comprehensive earnings (loss) for effective derivatives were as follows: Years Ended December 31, ($ in millions) 2015 2014 2013 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 ) $ ) $ $ ) |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Results of Operations (Unaudited) | |
Quarterly Results of Operations (Unaudited) | 20. Quarterly Results of Operations (Unaudited) The company’s quarters in both 2015 and 2014 ended on March 31, June 30, September 30 and December 31. ($ in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total 2015 Net sales $ $ $ $ $ Gross profit (a) Earnings before taxes $ $ $ $ $ Net earnings attributable to Ball Corporation $ $ $ $ $ Basic earnings per share (b): $ $ $ $ $ Diluted earnings per share (b): $ $ $ $ $ 2014 Net sales $ $ $ $ $ Gross profit (a) Earnings before taxes $ $ $ $ $ Net earnings attributable to Ball Corporation $ $ $ $ $ Basic earnings per share (b): $ $ $ $ $ Diluted earnings per share (b): $ $ $ $ $ (a) Gross profit is shown after depreciation and amortization related to cost of sales of $241.7 million and $232.8 million for the years ended December 31, 2015 and 2014, respectively. (b) Earnings per share calculations for each quarter are based on the weighted average shares outstanding for that period. As a result, the sum of the quarterly amounts may not equal the annual earnings per share amount. The unaudited quarterly results of operations included business consolidation and other activities that affected the company’s operating performance. Further details are included in Note 5. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Contingencies | |
Contingencies | 21. 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. In January 2015, Waste Management reported that total project costs to date were approximately $140 million. 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. Ball submitted its initial responses to the allocator’s questionnaire in March 2015, and after reviewing submissions from the PRPs alleging deficiencies in certain of Ball’s responses, the allocator denied certain of the allegations and directed the company to answer others, with supplemental responses expected to be submitted during the first quarter of 2016. Total site remediation costs of $342 million, to cover remediation of approximately 200 acres of river bottom, 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 District Court issued a claim construction order at the end of December 2015 and held a scheduling conference on February 10, 2016 to determine the timeline for future steps in the litigation. Activity in the case is now scheduled to resume in the second half of 2016. 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. The company’s operations in Brazil are involved in various governmental assessments, principally related to claims for taxes on the internal transfer of inventory, gross revenue taxes and tax incentives, and which amount to approximately $7.5 million. The company does not believe that the ultimate resolution of these matters will materially impact the company’s results of operations, financial position or cash flows. Under customary local regulations, the company’s Brazilian subsidiaries 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 those subsidiaries or Ball Corporation. |
Indemnifications and Guarantees
Indemnifications and Guarantees | 12 Months Ended |
Dec. 31, 2015 | |
Indemnifications and Guarantees | |
Indemnifications and Guarantees | 22. 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 records a liability for payments under promissory notes and other evidences of incurred indebtedness and for losses for any known contingent liabilities, 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 condensed consolidating financial information for the guarantor and non-guarantor subsidiaries is presented in Note 23. Separate financial statements for the guarantor subsidiaries and the non-guarantor subsidiaries are not presented because management has determined that such financial statements are not required by the current regulations. Accounts Receivable Securitization Ball Capital Corp. II is a separate, wholly owned corporate entity created for the purchase of accounts receivable from certain of the company’s wholly owned subsidiaries. Ball Capital Corp. II’s assets will be available first to satisfy the claims of its creditors. The company has been designated as the servicer pursuant to an agreement whereby Ball Capital Corp. II may sell and assign the accounts receivable to a commercial lender or lenders. As the servicer, the company is responsible for the servicing, administration and collection of the receivables and is primarily liable for the performance of such obligations. The company, the relevant subsidiaries and Ball Capital Corp. II are not in default under the above credit arrangement. |
Subsidiary Guarantees of Debt
Subsidiary Guarantees of Debt | 12 Months Ended |
Dec. 31, 2015 | |
Subsidiary Guarantees of Debt | |
Subsidiary Guarantees of Debt | 23. Subsidiary Guarantees of Debt The company’s senior notes are guaranteed on a full, unconditional and joint and several basis by certain of the company’s material domestic subsidiaries. Each of the guarantor subsidiaries is 100 percent owned by Ball Corporation. These guarantees are required in support of the notes, are co-terminous with the terms of the respective note indentures and would require performance upon certain events of default referred to in the respective guarantees. The maximum potential amounts that could be required to be paid under the domestic guarantees are essentially equal to the then outstanding principal and interest under the respective notes. The following is condensed consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of December 31, 2015 and 2014, and for the three years ended December 31, 2015, 2014 and 2013. Separate financial statements for the guarantor subsidiaries and the non-guarantor subsidiaries are not presented because management has determined that such financial statements are not required by the current regulations. Condensed Consolidating Statement of Earnings For the Year Ended December 31, 2015 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Adjustments Consolidated 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 $ $ $ $ ) $ Condensed Consolidating Statement of Earnings For the Year Ended December 31, 2014 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Adjustments Consolidated 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 $ $ $ $ ) $ Condensed Consolidating Statement of Earnings For the Year Ended December 31, 2013 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Adjustments Consolidated 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) from continuing operations ) Discontinued operations, 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 $ $ $ $ ) $ Condensed Consolidating Balance Sheet December 31, 2015 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Adjustments Consolidated 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 — — Restricted cash — — — 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 — 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 $ $ $ $ ) $ Condensed Consolidating Balance Sheet December 31, 2014 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Adjustments Consolidated 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 — 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 liabilties and shareholders’ equity $ $ $ $ ) $ Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2015 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Total Cash provided by (used in) operating activities $ ) $ $ $ Cash flows from investing activities Capital expenditures ) ) ) ) Business acquisition, net of cash acquired — ) — ) (Increase) decrease in noncurrent restricted cash ) — — ) 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 $ $ — $ $ Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2014 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Total Cash provided by (used in) continuing 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 $ $ $ $ Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2013 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Total Cash provided by (used in) continuing operating activities $ ) $ $ $ Cash provided by (used in) discontinued operating activities ) — ) Total cash provided by (used in) operating activities ) Cash flows from investing activities Capital expenditures ) ) ) ) Business acquisition, net of cash acquired — ) ) ) 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 | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events | |
Subsequent Events | 24. Subsequent Events In January 2016, the company announced that its Aerospace and Technologies segment had acquired specialized engineering cyber firm Wavefront Technologies. This acquisition is not material to the company. |
Critical and Significant Acco32
Critical and Significant Accounting (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Critical and Significant Accounting Policies | |
Acquisitions | Acquisitions The company records acquisitions resulting in the consolidation of an enterprise using the purchase method of accounting. Under this method, the acquiring company records the assets acquired, including intangible assets that can be identified and named, and liabilities assumed based on their estimated fair values at the date of acquisition. The purchase price in excess of the fair value of the assets acquired and liabilities assumed is recorded as goodwill. If the assets acquired, net of liabilities assumed, are greater than the purchase price paid, then a bargain purchase has occurred and the company will recognize the gain immediately in earnings. Among other sources of relevant information, the company uses independent appraisals and actuarial or other valuations to assist in determining the estimated fair values of the assets and liabilities. Various assumptions are used in the determination of these estimated fair values including discount rates, market and volume growth rates, product selling prices, production costs and other prospective financial information. Transaction costs associated with acquisitions are expensed as incurred and included in the business consolidation and other activities line of the consolidated statement of earnings. For acquisitions where the company already owns an equity investment in the acquired company, the company will recognize in earnings, upon the completion of the acquisition, a gain or loss related to the company’s existing equity investment. This gain or loss is calculated based on the fair value of the equity investment as compared to the carrying value of the existing equity investment on the date of acquisition. When the company purchases additional interests of consolidated subsidiaries that does not result in a change in control, the difference between the fair value and carrying value of the noncontrolling interests acquired is accounted for in the common stock line within shareholders’ equity. |
Exit and Other Closure Costs (Business Consolidation Costs) | Exit and Other Closure Costs (Business Consolidation Costs) The company estimates its liabilities for business closure activities by accumulating detailed estimates of costs and asset sale proceeds, if any, for each business consolidation initiative. This includes the estimated costs of employee severance, pension and related benefits; impairment of property and equipment and other assets, including estimates of net realizable value; accelerated depreciation; termination payments for contracts and leases; contractual obligations; and any other qualifying costs related to the exit plan. These estimated costs are grouped by specific projects within the overall exit plan and are then monitored on a monthly basis. Such disclosures represent management’s best estimates, but require assumptions about the plans that may change over time. Changes in estimates for individual locations and other matters are evaluated periodically to determine if a change in estimate is required for the overall restructuring plan. Subsequent changes to the original estimates are included in current earnings and identified as business consolidation gains or losses. |
Recoverability of Goodwill and Intangible Assets | Recoverability of Goodwill and Intangible Assets On an annual basis and at interim periods when circumstances require, the company tests the recoverability of its goodwill and indefinite-lived intangible assets. The company utilizes the two-step impairment analysis and has elected not to use the qualitative assessment or “step zero” approach. In the two-step impairment analysis, the company compares the carrying value of each identified reporting unit to its fair value. If the carrying value of the reporting unit is greater than its fair value, the second step is performed, where the implied fair value of goodwill is compared to its carrying value. The company recognizes an impairment charge for the amount by which the carrying amount of goodwill exceeds its implied fair value. The company estimates fair value for each reporting unit based on the weighted average of the estimated fair values using the market and income approaches. Under the market approach, the company uses available information regarding multiples used in recent transactions, if any, involving transfers of controlling interests as well as publicly available trading multiples based on the enterprise value of companies in the packaging and aerospace and defense industries. The appropriate multiple is applied to forecasted EBITDA (a non-GAAP item defined by the company as earnings before interest, taxes, depreciation and amortization) of each reporting unit to estimate fair value. Under the income approach, fair value is estimated as the present value of estimated future cash flows of each reporting unit. The projected cash flows incorporate various assumptions related to weighted average cost of capital (WACC) and growth rates specific to each reporting unit. Amortizable intangible assets are tested for impairment, when deemed necessary, based on undiscounted cash flows and, if impaired, are written down to fair value based on either discounted cash flows or appraised values. |
Defined Benefit Pension Plans and Other Employee Benefits | Defined Benefit Pension Plans and Other Employee Benefits The company has defined benefit plans that cover a significant portion of its employees. The company also has postretirement plans that provide certain medical benefits and life insurance for retirees and eligible dependents and, to a lesser extent, participates in multi-employer defined benefit plans for which Ball is not the sponsor. For the company-sponsored plans, the relevant accounting guidance requires that management make certain assumptions relating to the long-term rate of return on plan assets, discount rates used to determine the present value of future obligations and expenses, salary inflation rates, health care cost trend rates, mortality rates and other assumptions. The company believes that the accounting estimates related to our pension and postretirement plans are critical accounting estimates, because they are highly susceptible to change from period to period based on the performance of plan assets, actuarial valuations, market conditions and contracted benefit changes. The selection of assumptions is based on historical trends and known economic and market conditions at the time of valuation, as well as independent studies of trends performed by the company’s actuaries. However, actual results may differ substantially from the estimates that were based on the critical assumptions. The company recognizes the funded status of each defined benefit pension plan and other postretirement benefit plans in the consolidated balance sheet. Each overfunded plan is recognized as an asset, and each underfunded plan is recognized as a liability. Pension plan liabilities are revalued annually, or when an event occurs that requires remeasurement, based on updated assumptions and information about the individuals covered by the plan. For pension plans, accumulated actuarial gains and losses in excess of a 10 percent corridor and the prior service cost are amortized on a straight-line basis from the date recognized over the average remaining service period of active participants or over the average life expectancy for plans with significant inactive participants. For other postemployment benefits, the 10 percent corridor is not used. The majority of costs related to defined benefit and other postretirement plans are included in cost of sales; the remainder is included in selling, general and administrative expenses. In addition to defined benefit and postretirement plans, the company maintains reserves for employee medical claims, up to our insurance stop-loss limit, and workers’ compensation claims. These are regularly evaluated and revised, as needed, based on a variety of information, including historical experience, actuarial estimates and current employee statistics. |
Income Taxes | Income Taxes Deferred income taxes reflect the future tax consequences of differences between the tax bases of assets and liabilities and their financial reporting amounts at each balance sheet date, based upon enacted income tax laws and tax rates. Income tax expense or benefit is provided based on earnings reported in the financial statements. The provision for income tax expense or benefit differs from the amounts of income taxes currently payable because certain items of income and expense included in the consolidated financial statements are recognized in different time periods by taxing authorities. Deferred tax assets, including operating loss, capital loss and tax credit carryforwards, are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that any portion of these tax attributes will not be realized. In addition, from time to time, management must assess the need to accrue or disclose uncertain tax positions for proposed adjustments from various federal, state and foreign tax authorities who regularly audit the company in the normal course of business. In making these assessments, management must often analyze complex tax laws of multiple jurisdictions, including many foreign jurisdictions. The accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The company records the related interest expense and penalties, if any, as tax expense in the tax provision. |
Derivative Financial Instruments | Derivative Financial Instruments The company uses derivative financial instruments for the purpose of hedging commercial risk exposures to fluctuations in interest rates, currency exchange rates, raw material costs, inflation rates and common share prices. The company’s derivative instruments are recorded in the consolidated balance sheets at fair value. The company values each derivative financial instrument either by using a single valuation technique based on observable market inputs performed internally or by obtaining valuation information from a reliable and observable market source. For a derivative designated as a cash flow hedge, the effective portion of the derivative’s mark to fair value is initially recorded as a component of accumulated other comprehensive earnings and subsequently reclassified into earnings when the hedged item affects earnings, unless it is probable that the forecasted transaction will not occur. The ineffective portion of the mark to fair value associated with all hedges is recorded in earnings immediately. Derivatives that do not qualify for hedge accounting are marked to fair value with gains and losses immediately recorded in earnings. In the consolidated statements of cash flows, derivative activities are classified based on the items being hedged. Realized gains and losses from hedges are classified in the consolidated statements of earnings consistent with the accounting treatment of the items being hedged. Upon the early dedesignation of an effective derivative contract, the gains or losses are deferred in accumulated other comprehensive earnings until the originally hedged item affects earnings. Any gains or losses incurred after the dedesignation date are recorded in earnings immediately. |
Contingencies | Contingencies The company is subject to various legal proceedings and claims, including those that arise in the ordinary course of business. The company records loss contingencies when it determines that the outcome of the future event is probable of occurring and the amount of the loss can be reasonably estimated. Gain contingencies are recognized in the financial statements when they are realized. The determination of a reserve for a loss contingency is based on management’s judgment of probability and estimates with respect to the likelihood of an outcome and valuation of the future event. Liabilities are recorded or adjusted when events or circumstances cause these judgments or estimates to change. In assessing whether a loss is probable, Ball may consider the following factors, among others: the nature of the litigation, claim or assessment; available information, opinions or views of legal counsel and other advisors; and the experience gained from similar cases by the company and others. The company provides disclosures for material contingencies when there is a reasonable possibility that a loss or an additional loss may be incurred. Actual amounts realized upon settlement of contingencies may be different than amounts recorded and disclosed and could have a significant impact on the company’s consolidated financial statements. See Note 21 to the consolidated financial statements within Item 8 of this annual report for further details. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Ball, its consolidated subsidiaries, and variable interest entities in which the company is considered to be the primary beneficiary. Equity investments in which the company exercises significant influence but does not control and is not the primary beneficiary are accounted for using the equity method of accounting. Investments in which the company neither exercises significant influence over the investee, nor is the primary beneficiary of the investment, are accounted for using the cost method of accounting. Intercompany transactions are eliminated. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified in order to conform to the current year presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less. |
Inventories | Inventories Inventories are stated at the lower of cost or market using either the first-in, first-out (FIFO) cost method of accounting or the average cost method. Inventory cost is calculated for each inventory component taking into consideration the appropriate cost factors including fixed and variable overhead, material price volatility and production levels. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review long-lived assets for impairment when circumstances indicate the carrying amount of an asset or asset group may not be recoverable based on the undiscounted future cash flows of the asset. We review long-lived assets for impairment at the individual asset or the asset group level for which the lowest level of independent cash flows can be identified. If the carrying amount of the asset or asset group is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows, or external appraisals, as applicable. |
Depreciation and Amortization | Depreciation and Amortization Property, plant and equipment are carried at the cost of acquisition or construction and depreciated over the estimated useful lives of the assets. Repairs and maintenance costs, including labor and material costs for major improvements such as annual production line overhauls, are expensed as incurred, unless those costs substantially increase the useful lives or capacity of the existing assets. Assets are depreciated and amortized using the straight-line method over their estimated useful lives, generally 5 to 40 years for buildings and improvements and 2 to 20 years for machinery and equipment. Finite-lived intangible assets, including capitalized software costs, are generally amortized over their estimated useful lives of 3 to 23 years. The company periodically reviews these estimated useful lives and when appropriate changes are made prospectively. Deferred financing costs are amortized over the life of the related loan facility and are reported as part of interest expense. When debt is extinguished prior to its maturity date, the write-off of the remaining unamortized deferred financing costs, or a pro rata portion thereof, is also reported in the consolidated statement of earnings as debt refinancing and other costs. For certain business consolidation activities, accelerated depreciation may be required over the remaining useful life for assets designated to be scrapped or abandoned. The accelerated depreciation related to such activities is disclosed as part of business consolidation and other activities in the appropriate period. |
Environmental Reserves | Environmental Reserves The company estimates the liability related to environmental matters based on , among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. The company records the best estimate of a loss when the loss is considered probable. As additional information becomes available, the company assesses the potential liability related to pending matters and revises the estimates. |
Revenue Recognition in the Packaging Segments | Revenue Recognition in the Packaging Segments The company recognizes sales of products in the packaging segments when the four basic criteria of revenue recognition are met: delivery has occurred; title has transferred; there is persuasive evidence of an agreement or arrangement and the price is fixed or determinable; and collection is reasonably assured. Shipping and handling costs are reported within cost of sales in the consolidated statement of earnings. |
Revenue Recognition in the Aerospace and Technologies Segment | Revenue Recognition in the Aerospace and Technologies Segment Sales under long-term contracts in the aerospace and technologies segment are primarily recognized using percentage-of-completion under the cost-to-cost method of accounting. The two primary types of long-term sales contracts utilized are cost-type contracts, which are agreements to perform for cost plus an agreed upon profit component and fixed-price sales contracts, which are completed for a fixed price. Cost-type sales contracts can have different types of fee arrangements, including fixed-fee, cost, milestone and performance incentive fees, award fees or a combination thereof. At the inception of contract performance, our estimates of base, incentive and other fees are established at a conservative estimate of profit over the period of contract performance. Throughout the period of contract performance, the company regularly reevaluates and, if necessary, revises estimates of total contract revenue, total contract cost, extent of progress toward completion, probability of receipt of any award and performance fees and any clawback provisions included in the contract. Provision for estimated contract losses, if any, is made in the period that such losses are determined to be probable. Because of sales contract payment schedules, limitations on funding, and contract terms, our sales and accounts receivable generally include amounts that have been earned but not yet billed. Contract claims are only recorded if it is probable that the claim will result in additional contract revenue and the claim amounts can be reliably estimated. Revenue associated with claims is recorded only for costs already incurred and does not include a profit component. Pre-contract costs that are not approved by the customer for reimbursement are expensed as incurred. As a prime U.S. government contractor or subcontractor, the aerospace and technologies segment is subject to a high degree of regulation, financial review and oversight by the U.S. government. |
Fair Value Measurements | Fair Value Measurements Generally accepted accounting principles define fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value using the following definitions (from highest to lowest priority): · Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. · Level 2—Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. · Level 3—Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable. |
Stock-Based Compensation | Stock-Based Compensation Ball has a variety of restricted stock, stock option, and stock-settled appreciate rights (SSARs) plans, and the related stock-based compensation is primarily reported as part of selling, general and administrative expenses in the consolidated statements of earnings. The compensation expense associated with restricted stock grants is calculated using the fair value at the date of grant (closing stock price) and is amortized over the restriction period. For stock options and SSARs, the company has elected to use the Black-Scholes valuation model and amortizes the estimated fair value, determined at the date of grant, on a straight-line basis over the requisite service period (generally the vesting period). The company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is valued at the closing price of the company’s common stock at the end of each reporting period. Tax benefits associated with option and SSAR exercises are reported in financing activities in the consolidated statements of cash flows. Further details regarding the expense calculated under those fair value based methods are provided in Note 17. |
Research and Development | Research and Development Research and development costs are expensed as incurred in connection with the company’s programs for the development of products and processes. Costs incurred in connection with these programs, the majority of which are included in cost of sales, amounted to $26.0 million, $26.6 million and $31.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Currency Translation | Currency Translation Assets and liabilities of foreign operations with a functional currency other than the U.S. dollar are translated using period-end exchange rates, and revenues and expenses are translated using average exchange rates during each period. Translation gains and losses are reported in accumulated other comprehensive earnings as a component of shareholders’ equity. |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Segment Information | |
Schedule of major customers | 2015 2014 2013 Coca-Cola Bottlers’ Sales & Services Company LLC % % % MillerCoors LLC and SABMiller plc % % % U.S. Government % % % |
Summary of net sales and long lived assets by geographic area | Summary of Net Sales by Geographic Area (a) ($ in millions) U.S. Foreign Consolidated 2015 $ $ $ 2014 2013 Summary of Net Long-Lived Assets by Geographic Area (a) (b) ($ in millions) U.S. Brazil Other Consolidated 2015 $ $ $ $ 2014 (a) Includes intercompany eliminations. (b) Long-lived assets exclude goodwill, intangible assets and noncurrent restricted cash. |
Summary of business by segment | Years Ended December 31, ($ in millions) 2015 2014 2013 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 and 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 from continuing operations Discontinued operations, net of tax — — Net earnings Less net earnings attributable to noncontrolling interests ) ) ) Net earnings attibutable to Ball Corporation $ $ $ Years Ended December 31, ($ in millions) 2015 2014 2013 Depreciation and Amortization Metal beverage packaging, Americas & Asia $ $ $ Metal beverage packaging, Europe Metal food & household products packaging Aerospace & technologies Segment depreciation and amortization Corporate Depreciation and amortization $ $ $ Capital Expenditures Metal beverage packaging, Americas & Asia $ $ $ Metal beverage packaging, Europe Metal food & household products packaging Aerospace & technologies Segment capital expenditures Corporate Capital expenditures $ $ $ 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 $ $ Investments in Affiliates Metal beverage packaging, Americas & Asia $ $ Metal beverage packaging, Europe Corporate Total investments in affiliates $ $ |
Business Consolidation and Ot34
Business Consolidation and Other Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Consolidation and Other Activities | |
Summary of business consolidation and other activity charges included in the condensed consolidated statements of earnings | Years Ended December 31, ($ in millions) 2015 2014 2013 Metal beverage packaging, Americas & Asia $ ) $ ) $ ) Metal beverage packaging, Europe ) ) ) Metal food & household products packaging ) ) ) Aerospace & technologies ) ) Corporate and other ) ) ) $ ) $ ) $ ) |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables | |
Schedule of receivables | December 31, ($ in millions) 2015 2014 Trade accounts receivable $ $ Less allowances for doubtful accounts ) ) Net trade accounts receivable Other receivables $ $ |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventories | |
Schedule of inventories | 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) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment | |
Schedule of property, plant and equipment | December 31, ($ in millions) 2015 2014 Land $ $ Buildings Machinery and equipment Construction-in-progress Accumulated depreciation ) ) $ $ |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 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, 2013 $ $ $ $ $ Business disposition ) — — — ) Effects of currency exchange rates — ) ) — ) Balance at December 31, 2014 Business acquisition — — — Effects of currency exchange rates — ) ) — ) Balance at December 31, 2015 $ $ $ $ $ |
Intangibles and Other Assets (T
Intangibles and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangibles and Other Assets | |
Schedule of intangibles and other assets | December 31, ($ in millions) 2015 2014 Investments in affiliates $ $ Intangible assets (net of accumulated amortization of $132.9 million and $115.2 million at December 31, 2015 and 2014, respectively) Capitalized software (net of accumulated amortization of $115.6 million and $103.8 million at December 31, 2015 and 2014, respectively) Company and trust-owned life insurance Deferred financing costs Long-term deferred tax assets Other $ $ |
Debt and Interest Costs (Tables
Debt and Interest Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt and Interest Costs | |
Schedule of long-term debt | December 31, ($ in millions) 2015 2014 Notes Payable 6.75% Senior Notes, due September 2020 $ — $ 5.75% Senior Notes, due May 2021 — 5.25% Senior Notes, due July 2025 — 5.00% Senior Notes, due March 2022 4.375% Senior Notes, due December 2020 — 4.375% Senior Notes, euro denominated, due December 2023 — 4.00% Senior Notes, due November 2023 3.50% Senior Notes, euro denominated, due December 2020 — Multi-currency revolver, due February 2018 — — Bridge Facility — — Senior Credit Facilities, due June 2018 (at variable rates) Term C Loan, euro denominated (2014 - 1.65%) — Latapack-Ball Notes Payable, denominated in various currencies (2015 - 4.35%; 2014 - 4.14%) Other (including discounts and premiums) ) Less: Current portion of long-term debt ) ) $ $ |
Schedule of Debt Refinancing and Other Costs | Years Ended December 31, ($ in millions) 2015 2014 2013 Debt Refinancing and Other Costs: Redemption of 6.75% and 5.75% senior notes, due September 2020 and May 2021, respectively $ ) $ — $ — Unsecured, committed bridge facility ) — — Economic hedge - interest rate risk ) — — Partial extinguishment of committed bridge facility ) — — Partial extinguishment of revolving credit facility ) — — Interest expense on 3.5% and 4.375% senior notes ) — — Refinance of senior credit facilities ) — — Redemption of 7.375% senior notes, due September 2019 — ) — Early repayment of Term A loan — — ) Other individually insignificant — — ) $ ) $ ) $ ) |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Taxes on Income | |
Schedule of amount of earnings before income taxes | Years Ended December 31, ($ in millions) 2015 2014 2013 U.S. $ $ $ Foreign $ $ $ |
Schedule of provision for income tax expense | Years Ended December 31, ($ in millions) 2015 2014 2013 Current U.S. $ $ $ State and local Foreign Total current Deferred U.S. ) State and local ) ) ) Foreign ) ) Total deferred (a) ) ) Tax provision $ $ $ (a) Amounts do not include tax benefits related to discontinued operations of $(0.2) million in 2013. |
Schedule of income tax provision recorded within the consolidated statements of earnings which differ from the provisions determined by applying the U.S. statutory tax rate to pretax earnings | Years Ended December 31, ($ in millions) 2015 2014 2013 Statutory U.S. federal income tax $ $ $ Increase (decrease) due to: Foreign tax rate differences ) ) ) U.S. state and local taxes, net U.S. taxes on foreign earnings, net of tax credits U.S. manufacturing deduction ) ) ) U.S. research and development tax credits ) ) ) Uncertain tax positions, including interest ) ) ) Company and trust-owned life insurance ) ) ) Other, net ) ) ) Provision for taxes $ $ $ Effective tax rate expressed as a percentage of pretax earnings % % % |
Schedule of significant components of deferred tax assets and liabilities | December 31, ($ in millions) 2015 2014 Deferred tax assets: Deferred compensation $ $ Accrued employee benefits Plant closure costs Accrued pensions Inventory and other reserves Net operating losses, foreign tax credits and other tax attributes Unrealized losses on currency exchange and derivative transactions Transaction costs — Other Total deferred tax assets Valuation allowance ) ) Net deferred tax assets Deferred tax liabilities: Property, plant and equipment ) ) Goodwill and other intangible assets ) ) Other ) ) Total deferred tax liabilities ) ) Net deferred tax asset (liability) $ $ |
Schedule of net deferred tax asset (liability) included in consolidated balance sheets | December 31, ($ in millions) 2015 2014 Deferred taxes and other current assets $ $ Intangibles and other assets, net Other current liabilities ) ) Deferred taxes and other liabilities ) ) Net deferred tax asset $ $ |
Roll forward of unrecognized tax benefits related to uncertain income tax positions | ($ in millions) 2015 2014 2013 Balance at January 1 $ $ $ Additions based on tax positions related to the current year Additions for tax positions of prior years Reductions for settlements ) — ) Reductions due to lapse of statute of limitations ) ) ) Effect of foreign currency exchange rates ) ) Balance at December 31 $ $ $ |
Employee Benefit Obligations (T
Employee Benefit Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Obligations | |
Schedule of employee benefit obligations | December 31, ($ in millions) 2015 2014 Underfunded defined benefit pension liabilities $ $ 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 | |
Analysis of change in benefit accruals | December 31, 2015 2014 ($ in millions) U.S. Foreign Total U.S. Foreign Total Change in projected benefit obligation: Benefit obligation at prior year end $ $ $ $ $ $ Service cost Interest cost Benefits paid ) ) ) ) ) ) Net actuarial (gains) losses ) ) ) Effect of exchange rates — ) ) — ) ) Settlements/curtailments/special termination — ) — ) Plan amendments and other ) ) — ) Benefit obligation at year end Change in plan assets: Fair value of assets at prior year end Actual return on plan assets ) ) Employer contributions Contributions to unfunded German plans (a) — — Benefits paid ) ) ) ) ) ) Effect of exchange rates — ) ) — ) ) Settlements — — — ) — ) Fair value of assets at end of year Underfunded status $ ) $ ) (a) $ ) $ ) $ ) (a) $ ) (a) The German plans are unfunded and the liability is included in the company’s consolidated balance sheets. Benefits are paid directly by the company to the participants. The German plans represented $317.1 million and $393.9 million of the total unfunded status at December 31, 2015 and 2014, respectively. |
Schedule of amounts recognized in the consolidated balance sheets | December 31, 2015 2014 ($ in millions) U.S. Foreign Total U.S. Foreign Total Prepaid pension cost $ — $ $ $ — $ $ Defined benefit pension liabilities ) ) ) ) ) ) $ ) $ ) $ ) $ ) $ ) $ ) |
Schedule of amounts recognized in accumulated other comprehensive earnings (loss) | December 31, 2015 2014 ($ in millions) U.S. Foreign Total U.S. Foreign Total Net actuarial loss $ $ $ $ $ $ Net prior service cost (credit) ) ) Tax effect and currency exchange rates ) ) ) ) ) ) $ $ $ $ $ $ |
Summary of information for plans with an accumulated benefit obligation in excess of plan assets | December 31, 2015 2014 ($ in millions) U.S. Foreign Total U.S. Foreign Total Projected benefit obligation $ $ $ $ $ $ Accumulated benefit obligation Fair value of plan assets (a) (a) (a) The German plans are unfunded and, therefore, there is no fair value of plan assets associated with them. The unfunded status of those plans was $317.1 million and $393.9 million at December 31, 2015 and 2014, respectively. |
Components of net periodic benefit cost | Years Ended December 31, 2015 2014 2013 ($ in millions) U.S. Foreign Total 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 (gains), including special termination benefits — — Net periodic benefit cost for Ball-sponsored plans Multi-employer plans: Net periodic benefit cost, excluding curtailment loss — — — Curtailment and settlement losses (gains) — — — — — — — Net periodic benefit cost for multi-employer plans — — — Total net periodic benefit cost $ $ $ $ $ $ $ $ $ |
Schedule of target asset allocations established | U.S. Canada United Kingdom(c) Cash and cash equivalents 0-10% 0-2% % Equity securities 10-75% (a) 8-12% % Fixed income securities 25-70% (b) 88-92% % Absolute return investments — — % Alternative investments 0-35% — % (a) Equity securities may consist of: (1) up to 25 percent large cap equities, (2) up to 10 percent mid cap equities, (3) up to 10 percent small cap equities, (4) up to 35 percent foreign equities and (5) up to 35 percent special equities. Holdings in Ball Corporation common stock or Ball bonds cannot exceed 5 percent of the trust’s assets. (b) Debt securities may include up to 10 percent non-investment grade bonds, up to 10 percent bank loans and up to 15 percent international bonds. (c) The percentages provided reflect the asset allocation percentage at December 31, 2015. The portfolio mix is expected to be adjusted over time toward more fixed-income securities. |
Schedule of actual weighted average asset allocations | 2015 2014 Cash and cash equivalents % % Equity securities % % Fixed income securities % % Alternative investments % % % % |
North American | |
Employee Benefit Obligations | |
Summary of weighted average assumptions used to determine benefit obligations | U.S. Canada 2015 2014 2013 2015 2014 2013 Discount rate % % % % % % Rate of compensation increase % % % % % % |
Summary of weighted average assumptions used to determine net periodic benefit cost | U.S. Canada 2015 2014 2013 2015 2014 2013 Discount rate % % % % % % Rate of compensation increase % % % % % % Expected long-term rate of return on assets % % % % % % |
European | |
Employee Benefit Obligations | |
Summary of weighted average assumptions used to determine benefit obligations | United Kingdom Germany 2015 2014 2013 2015 2014 2013 Discount rate % % % % % % Rate of compensation increase % % % % % % Pension increase % % % % % % |
Summary of weighted average assumptions used to determine net periodic benefit cost | United Kingdom Germany 2015 2014 2013 2015 2014 2013 Discount rate % % % % % % Rate of compensation increase % % % % % % Pension increase % % % % % % Expected long-term rate of return on assets % % % N/A N/A N/A |
U.S. | |
Employee Benefit Obligations | |
Summary of levels assigned to the plan assets | December 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total U.S. pension assets, at fair value: Cash and cash equivalents $ $ $ — $ Corporate equity securities: Consumer discretionary — — Financials — — Healthcare — — Industrials — — Information technology — — Other — U.S. government and agency securities: FHLMC mortgage backed securities — — FNMA mortgage backed securities — — Treasury bonds — — Other — Corporate bonds and notes: Financials — — Industrials — Oil and gas — — Private placement — — Other — — Commingled funds International — Other — Limited partnerships and other — Total assets $ $ $ $ December 31, 2014 ($ in millions) Level 1 Level 2 Level 3 Total U.S. pension assets, at fair value: Cash and cash equivalents $ $ $ — $ Corporate equity securities: Consumer discretionary — — Industrials — — Information technology — — Other — U.S. government and agency securities: FHLMC mortgage backed securities — — FNMA mortgage backed securities — — Other — Corporate bonds and notes: Financials — — Oil and gas — — Private placement — — Other — — Commingled funds International — Other — Limited partnerships and other — Total assets $ $ $ $ |
Changes in level 3 plan assets | The following is a reconciliation of the U.S. Level 3 assets for the two years ended December 31, 2015 (dollars in millions): Balance at December 31, 2013 $ Actual return on plan assets relating to assets still held at the reporting date Purchases Sales ) Balance at December 31, 2014 Actual return on plan assets relating to assets still held at the reporting date Purchases Sales ) Balance at December 31, 2015 $ |
Canada. | |
Employee Benefit Obligations | |
Summary of levels assigned to the plan assets | December 31, ($ in millions) 2015 2014 Canadian pension assets, at fair value (all Level 2): Equity commingled funds $ $ Fixed income commingled funds Fixed income securities Total assets $ $ |
United Kingdom. | |
Employee Benefit Obligations | |
Summary of levels assigned to the plan assets | December 31, ($ in millions) 2015 2014 U.K. pension assets, at fair value (all Level 2): Cash and cash equivalents $ $ — Equity commingled funds Fixed income commingled funds Absolute return funds Alternative investments Net assets $ $ |
Other post retirement benefits | |
Employee Benefit Obligations | |
Analysis of change in benefit accruals | ($ in millions) 2015 2014 Change in benefit obligation: Benefit obligation at prior year end $ $ Service cost Interest cost Benefits paid ) ) Net actuarial (gain) loss ) Special termination benefits — Effect of exchange rates and other ) ) Benefit obligation at year end $ $ |
Components of net periodic benefit cost | Years Ended December 31, ($ in millions) 2015 2014 2013 Service cost $ $ $ Interest cost Amortization of prior service cost ) ) ) Recognized net actuarial loss (gain) ) ) ) Special termination benefits — Net periodic benefit cost $ $ $ |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity | |
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) December 31, 2013 $ $ ) $ ) $ ) Other comprehensive earnings (loss) before reclassifications ) ) ) Amounts reclassified from accumulated other comprehensive earnings (loss) — December 31, 2014 ) ) ) ) Other comprehensive earnings (loss) before reclassifications ) ) ) Amounts reclassified from accumulated other comprehensive earnings (loss) — December 31, 2015 $ ) $ ) $ ) $ ) |
Information related to amounts recognized into net earnings from AOCI | ($ in millions) December 31, 2015 2014 2013 Gains (losses) on cash flow hedges: Commodity contracts recorded in net sales $ $ ) $ Commodity contracts and currency exchange contracts recorded in cost of sales ) ) ) Currency exchange contracts recorded in SG&A expense — — Interest rate contracts recorded in interest expense ) — ) Total before tax effect ) ) $ ) Tax benefit (expense) on amounts reclassified into earnings Recognized gain (loss) $ ) $ ) $ ) Amortization of pension and other postretirement benefits (a) : Prior service income (cost) $ $ $ Actuarial gains (losses) ) ) ) Effect of pension settlement — ) — Total before tax effect ) ) ) Tax benefit (expense) on amounts reclassified into earnings Recognized gain (loss) $ ) $ ) $ ) (a) These components are included in the computation of net periodic benefit cost included in Note 15. |
Stock-Based Compensation Prog44
Stock-Based Compensation Programs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation Programs | |
Summary of stock option activity | A summary of stock option activity for the year ended December 31, 2015, follows: Outstanding Options and SSARs Number of Shares Weighted Average Exercise Price Beginning of year $ Granted Exercised ) Canceled/forfeited ) End of period Vested and exercisable, end of period $ Reserved for future grants |
Schedule of weighted average assumptions used for estimating fair values of options | 2015 Grants 2014 Grants 2013 Grants Expected dividend yield Expected stock price volatility Risk-free interest rate Expected life of options (in years) 5.85 years 5.50 years 5.50 years |
Summary of restricted stock activity | Following is a summary of restricted stock activity for the year ended December 31, 2015: Number of Shares/Units Weighted Average Grant Price Beginning of year $ Granted Vested ) Canceled/forfeited ) End of period |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share | |
Schedule of earnings per share | Years Ended December 31, ($ in millions, except per share amounts; shares in thousands) 2015 2014 2013 Net earnings attributable to Ball Corporation $ $ $ Basic weighted average common shares Effect of dilutive securities Weighted average shares applicable to diluted earnings per share Basic earnings per share $ $ $ Diluted earnings per share $ $ $ |
Financial Instruments and Ris46
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments and Risk Management | |
Schedule of fair value of derivative instruments | December 31, 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 Other contracts — — — — Total current derivative contracts $ $ $ $ $ $ Commodity contracts $ $ — $ $ $ $ Foreign currency contracts — — — — Interest rate contracts — — Total noncurrent derivative contracts $ $ $ $ $ $ Liabilities: Commodity contracts $ $ $ $ $ $ Foreign currency contracts — Interest rate and other contracts — Total current derivative contracts $ $ $ $ $ $ Commodity contracts $ $ — $ $ $ $ Interest rate contracts — Total noncurrent derivative contracts $ $ $ $ $ $ |
Schedule of impact on earnings from derivative instruments | Years Ended December 31, 2015 2014 2013 ($ in millions) Location of Gain (Loss) Recognized in Earnings on Derivatives Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) - Gain (Loss) Gain (Loss) on Derivatives not Designated as Hedge Instruments Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) - Gain (Loss) Gain (Loss) on Derivatives not Designated as Hedge Instruments Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) - Gain (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 — ) — — — — Cross currency swaps - manage exposure for proposed acquisition of Rexam Business consolidation and other activities — ) — — — — Equity and inflation contracts Selling, general and administrative — — ) — Total $ ) $ ) $ ) $ ) $ ) $ |
Schedule of changes in accumulated other comprehensive earnings (loss) for effective derivatives | Years Ended December 31, ($ in millions) 2015 2014 2013 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 ) $ ) $ $ ) |
Quarterly Results of Operatio47
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Results of Operations (Unaudited) | |
Schedule of quarterly results of operations | ($ in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total 2015 Net sales $ $ $ $ $ Gross profit (a) Earnings before taxes $ $ $ $ $ Net earnings attributable to Ball Corporation $ $ $ $ $ Basic earnings per share (b): $ $ $ $ $ Diluted earnings per share (b): $ $ $ $ $ 2014 Net sales $ $ $ $ $ Gross profit (a) Earnings before taxes $ $ $ $ $ Net earnings attributable to Ball Corporation $ $ $ $ $ Basic earnings per share (b): $ $ $ $ $ Diluted earnings per share (b): $ $ $ $ $ (a) Gross profit is shown after depreciation and amortization related to cost of sales of $241.7 million and $232.8 million for the years ended December 31, 2015 and 2014, respectively. (b) Earnings per share calculations for each quarter are based on the weighted average shares outstanding for that period. As a result, the sum of the quarterly amounts may not equal the annual earnings per share amount. |
Subsidiary Guarantees of Debt (
Subsidiary Guarantees of Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Subsidiary Guarantees of Debt | |
Schedule of Condensed Consolidating Statement of Earnings | Condensed Consolidating Statement of Earnings For the Year Ended December 31, 2015 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Adjustments Consolidated 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 $ $ $ $ ) $ Condensed Consolidating Statement of Earnings For the Year Ended December 31, 2014 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Adjustments Consolidated 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 $ $ $ $ ) $ Condensed Consolidating Statement of Earnings For the Year Ended December 31, 2013 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Adjustments Consolidated 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) from continuing operations ) Discontinued operations, 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 | Condensed Consolidating Balance Sheet December 31, 2015 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Adjustments Consolidated 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 — — Restricted cash — — — 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 — 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 $ $ $ $ ) $ Condensed Consolidating Balance Sheet December 31, 2014 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Adjustments Consolidated 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 — 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 liabilties and shareholders’ equity $ $ $ $ ) $ |
Schedule of Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2015 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Total Cash provided by (used in) operating activities $ ) $ $ $ Cash flows from investing activities Capital expenditures ) ) ) ) Business acquisition, net of cash acquired — ) — ) (Increase) decrease in noncurrent restricted cash ) — — ) 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 $ $ — $ $ Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2014 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Total Cash provided by (used in) continuing 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 $ $ $ $ Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2013 ($ in millions) Ball Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Total Cash provided by (used in) continuing operating activities $ ) $ $ $ Cash provided by (used in) discontinued operating activities ) — ) Total cash provided by (used in) operating activities ) Cash flows from investing activities Capital expenditures ) ) ) ) Business acquisition, net of cash acquired — ) ) ) 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 $ $ $ $ |
Critical and Significant Acco49
Critical and Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2015item | |
Defined Benefit Pension Plans and Other Employee Benefits | |
Corridor percentage considered for amortization of accumulated actuarial gains and losses | 10.00% |
Revenue Recognition in the Aerospace and Technologies Segment | |
Number of types of long-term sales contracts | 2 |
Cash and Cash Equivalents | |
Maximum original maturity period of highly liquid debt instruments to be considered as cash equivalents | 3 months |
Minimum | |
Depreciation and Amortization | |
Finite-lived intangible assets, including capitalized software costs | 3 years |
Maximum | |
Depreciation and Amortization | |
Finite-lived intangible assets, including capitalized software costs | 23 years |
Buildings and improvements | Minimum | |
Depreciation and Amortization | |
Estimated useful life | 5 years |
Buildings and improvements | Maximum | |
Depreciation and Amortization | |
Estimated useful life | 40 years |
Machinery and equipment | Minimum | |
Depreciation and Amortization | |
Estimated useful life | 2 years |
Machinery and equipment | Maximum | |
Depreciation and Amortization | |
Estimated useful life | 20 years |
Critical and Significant Acco50
Critical and Significant Accounting Policies (Details 2) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Revenue Recognition in the Packaging Segment | |||
Number of basic criteria to be met for recognizing sales of products in the packaging segments | item | 4 | ||
Research and Development | |||
Research and development expenses | $ | $ 26 | $ 26.6 | $ 31.2 |
Accounting Pronouncements (Deta
Accounting Pronouncements (Details) $ in Millions | Dec. 31, 2015USD ($) |
Deferred Tax Assets and Liabilities | |
Current deferred tax assets | $ 96.3 |
Current deferred tax liabilities | $ 3.1 |
Business Segment Information (D
Business Segment Information (Details) - item | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Segment Information | |||
Number of reportable segments | 4 | ||
Net Sales. | Customer concentration | Coca-Cola Bottlers' Sales & Services Company LLC | |||
Major Customers | |||
Percentage of consolidated net sales | 11.00% | 11.00% | 11.00% |
Net Sales. | Customer concentration | MillerCoors LLC and SABMiller plc | |||
Major Customers | |||
Percentage of consolidated net sales | 10.00% | 10.00% | 9.00% |
Net Sales. | Customer concentration | U.S. Government | |||
Major Customers | |||
Percentage of consolidated net sales | 10.00% | 10.00% | 10.00% |
Business Segment Information 53
Business Segment Information (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net sales | $ 1,804.6 | $ 2,097 | $ 2,172.3 | $ 1,923.1 | $ 2,032.4 | $ 2,238.9 | $ 2,291.9 | $ 2,006.8 | $ 7,997 | $ 8,570 | $ 8,468.1 |
Net long-lived assets | 3,067.1 | 2,803.4 | 3,067.1 | 2,803.4 | |||||||
United States | |||||||||||
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net sales | 4,738 | 5,090.7 | 5,103.9 | ||||||||
Net long-lived assets | 1,291.3 | 1,219.4 | 1,291.3 | 1,219.4 | |||||||
Brazil | |||||||||||
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net long-lived assets | 463.1 | 458.6 | 463.1 | 458.6 | |||||||
Other | |||||||||||
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net long-lived assets | $ 1,312.7 | $ 1,125.4 | 1,312.7 | 1,125.4 | |||||||
Foreign | |||||||||||
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net sales | $ 3,259 | $ 3,479.3 | $ 3,364.2 |
Business Segment Information 54
Business Segment Information (Details 3) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Segment Information | |||||||||||
Net sales | $ 1,804.6 | $ 2,097 | $ 2,172.3 | $ 1,923.1 | $ 2,032.4 | $ 2,238.9 | $ 2,291.9 | $ 2,006.8 | $ 7,997 | $ 8,570 | $ 8,468.1 |
Business consolidation and other activities | (194.7) | (80.5) | (78.8) | ||||||||
Earnings before interest and taxes | 605.2 | 838.6 | 795.4 | ||||||||
Interest expense | (143.2) | (159.9) | (183.8) | ||||||||
Debt refinancing and other costs | (116.5) | (33.1) | (28) | ||||||||
Total interest expense | (259.7) | (193) | (211.8) | ||||||||
Tax (provision) benefit | (47) | (149.9) | (149.6) | ||||||||
Equity in results of affiliates, net of tax | 4.4 | 2.3 | 0.6 | ||||||||
Net earnings from continuing operations | 302.9 | 498 | 434.6 | ||||||||
Discontinued operations, net of tax | 0.4 | ||||||||||
Net earnings | 302.9 | 498 | 435 | ||||||||
Less net earnings attributable to noncontrolling interests | (22) | (28) | (28.2) | ||||||||
Net earnings attributable to Ball Corporation | 55.3 | $ 44.5 | $ 160.4 | $ 20.7 | 76 | $ 147.4 | $ 153.1 | $ 93.5 | 280.9 | 470 | 406.8 |
Segment depreciation and amortization | |||||||||||
Depreciation and amortization | 285.5 | 280.9 | 299.9 | ||||||||
Segment property, plant and equipment | |||||||||||
Capital expenditures | 527.9 | 390.8 | 378.3 | ||||||||
Segment Assets | |||||||||||
Assets | 9,777 | 7,571 | 9,777 | 7,571 | |||||||
Segment investments in affiliates | |||||||||||
Investments in affiliates | 34.3 | 33.2 | 34.3 | 33.2 | |||||||
Operating Segments | |||||||||||
Business Segment Information | |||||||||||
Earnings before interest and taxes | 859 | 933.5 | 874.4 | ||||||||
Segment depreciation and amortization | |||||||||||
Depreciation and amortization | 279.9 | 274.5 | 292.4 | ||||||||
Segment property, plant and equipment | |||||||||||
Capital expenditures | 519 | 380.4 | 371.8 | ||||||||
Segment Assets | |||||||||||
Assets | 8,003.2 | 7,617 | 8,003.2 | 7,617 | |||||||
Operating Segments | Metal beverage packaging, Americas and Asia | |||||||||||
Business Segment Information | |||||||||||
Net sales | 4,245.3 | 4,246.8 | 4,193.4 | ||||||||
Earnings before business consolidation and other activities, and before interest and taxes | 510.9 | 534.8 | 512.4 | ||||||||
Business consolidation and other activities | (24.1) | (7.5) | (3.6) | ||||||||
Earnings before interest and taxes | 486.8 | 527.3 | 508.8 | ||||||||
Segment depreciation and amortization | |||||||||||
Depreciation and amortization | 134.5 | 128.7 | 121.9 | ||||||||
Segment property, plant and equipment | |||||||||||
Capital expenditures | 308.6 | 160.1 | 224 | ||||||||
Segment Assets | |||||||||||
Assets | 3,598.1 | 3,422.8 | 3,598.1 | 3,422.8 | |||||||
Segment investments in affiliates | |||||||||||
Investments in affiliates | 32.6 | 31.3 | 32.6 | 31.3 | |||||||
Operating Segments | Metal beverage packaging, Europe | |||||||||||
Business Segment Information | |||||||||||
Net sales | 1,652.7 | 1,896.3 | 1,828.3 | ||||||||
Earnings before business consolidation and other activities, and before interest and taxes | 192.3 | 222.9 | 182.6 | ||||||||
Business consolidation and other activities | (9.8) | (8.7) | (10.6) | ||||||||
Earnings before interest and taxes | 182.5 | 214.2 | 172 | ||||||||
Segment depreciation and amortization | |||||||||||
Depreciation and amortization | 59.9 | 62.5 | 87 | ||||||||
Segment property, plant and equipment | |||||||||||
Capital expenditures | 121.5 | 108.6 | 75.4 | ||||||||
Segment Assets | |||||||||||
Assets | 2,474.7 | 2,274.5 | 2,474.7 | 2,274.5 | |||||||
Segment investments in affiliates | |||||||||||
Investments in affiliates | 0.3 | 0.5 | 0.3 | 0.5 | |||||||
Operating Segments | Metal food & household products packaging | |||||||||||
Business Segment Information | |||||||||||
Net sales | 1,296.6 | 1,504.4 | 1,558.6 | ||||||||
Earnings before business consolidation and other activities, and before interest and taxes | 107.7 | 154.2 | 177.4 | ||||||||
Business consolidation and other activities | (0.5) | (41.9) | (63.7) | ||||||||
Earnings before interest and taxes | 107.2 | 112.3 | 113.7 | ||||||||
Segment depreciation and amortization | |||||||||||
Depreciation and amortization | 58.7 | 57.1 | 59.4 | ||||||||
Segment property, plant and equipment | |||||||||||
Capital expenditures | 60.8 | 81.6 | 43 | ||||||||
Segment Assets | |||||||||||
Assets | 1,527.8 | 1,508.1 | 1,527.8 | 1,508.1 | |||||||
Operating Segments | Aerospace & technologies | |||||||||||
Business Segment Information | |||||||||||
Net sales | 810.1 | 934.8 | 897.1 | ||||||||
Earnings before business consolidation and other activities, and before interest and taxes | 81.8 | 93.6 | 80.1 | ||||||||
Business consolidation and other activities | 0.7 | (13.9) | (0.2) | ||||||||
Earnings before interest and taxes | 82.5 | 79.7 | 79.9 | ||||||||
Segment depreciation and amortization | |||||||||||
Depreciation and amortization | 26.8 | 26.2 | 24.1 | ||||||||
Segment property, plant and equipment | |||||||||||
Capital expenditures | 28.1 | 30.1 | 29.4 | ||||||||
Segment Assets | |||||||||||
Assets | 402.6 | 411.6 | 402.6 | 411.6 | |||||||
Corporate | |||||||||||
Business Segment Information | |||||||||||
Business consolidation and other activities | (161) | (8.5) | (0.7) | ||||||||
Segment depreciation and amortization | |||||||||||
Depreciation and amortization | 5.6 | 6.4 | 7.5 | ||||||||
Segment property, plant and equipment | |||||||||||
Capital expenditures | 8.9 | 10.4 | 6.5 | ||||||||
Segment Assets | |||||||||||
Assets | 1,773.8 | (46) | 1,773.8 | (46) | |||||||
Segment investments in affiliates | |||||||||||
Investments in affiliates | $ 1.4 | $ 1.4 | 1.4 | 1.4 | |||||||
Corporate and intercompany eliminations | |||||||||||
Business Segment Information | |||||||||||
Net sales | (7.7) | (12.3) | (9.3) | ||||||||
Undistributed corporate expenses and intercompany eliminations, net | (92.8) | (86.4) | (78.3) | ||||||||
Business consolidation and other activities | (161) | (8.5) | (0.7) | ||||||||
Total undistributed corporate expenses and intercompany eliminations, net | $ (253.8) | $ (94.9) | $ (79) |
Acquisitions (Details)
Acquisitions (Details) £ / shares in Units, € in Millions, $ in Millions | Feb. 17, 2015GBP (£)£ / shares | Feb. 17, 2015USD ($) | Dec. 31, 2015EUR (€) | Nov. 30, 2015USD ($)shares | Oct. 31, 2015USD ($)shares | Feb. 28, 2015USD ($) | Dec. 31, 2015EUR (€) | Jan. 31, 2016EUR (€) | Jan. 31, 2016USD ($) | Dec. 31, 2015GBP (£) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Feb. 28, 2015GBP (£) | Feb. 28, 2015USD ($) | Feb. 19, 2015GBP (£)shares | Feb. 19, 2015USD ($)shares | Dec. 31, 2014USD ($) |
Acquisitions | |||||||||||||||||
Face amount of debt | $ 5,100 | $ 3,000 | |||||||||||||||
Long-term debt | 5,107.8 | 3,048.8 | |||||||||||||||
Period within which derivative will expire | 5 years | ||||||||||||||||
Interest rate swap agreements | |||||||||||||||||
Acquisitions | |||||||||||||||||
Notional amount of derivatives | 115 | ||||||||||||||||
Period within which derivative will expire | 5 years | ||||||||||||||||
Rexam PLC | |||||||||||||||||
Acquisitions | |||||||||||||||||
Cash paid per share of acquired stock | £ | £ 4.07 | ||||||||||||||||
Number of shares issued per share of acquired stock | shares | 0.04568 | 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 | |||||||||||||||
Latapack-Ball Embalagens Ltda. (Latapack-Ball) | |||||||||||||||||
Acquisitions | |||||||||||||||||
Treasury stock exchanged (in shares) | shares | 5,700,000 | 5,700,000 | |||||||||||||||
Business acquired in cash | $ 17.4 | $ 17.4 | |||||||||||||||
Rexam PLC | Interest rate swap agreements | Derivatives Not Designated As Hedging Instruments | |||||||||||||||||
Acquisitions | |||||||||||||||||
Notional amount of derivatives | € 1,750 | € 1,750 | € 850 | $ 923 | 200 | ||||||||||||
Period within which derivative will expire | 4 years | ||||||||||||||||
Rexam PLC | Interest rate swaption | Derivatives Not Designated As Hedging Instruments | |||||||||||||||||
Acquisitions | |||||||||||||||||
Notional amount of derivatives | € | 750 | € 750 | |||||||||||||||
Rexam PLC | Cross-currency swaps | Derivatives Not Designated As Hedging Instruments | |||||||||||||||||
Acquisitions | |||||||||||||||||
Notional amount of derivatives | 1,000 | ||||||||||||||||
Rexam PLC | Maximum | |||||||||||||||||
Acquisitions | |||||||||||||||||
Amount of break payment | £ | £ 302,000,000 | ||||||||||||||||
Sonoco | |||||||||||||||||
Acquisitions | |||||||||||||||||
Business acquired in cash | $ 29.1 | ||||||||||||||||
Contingent cash consideration | $ 10.5 | ||||||||||||||||
Contingent noncash consideration | 24.4 | ||||||||||||||||
Bridge Facility | |||||||||||||||||
Acquisitions | |||||||||||||||||
Face amount of debt | £ | £ 1,900,000,000 | £ 3,300,000,000 | £ 3,300,000,000 | ||||||||||||||
Revolving Credit Facility | |||||||||||||||||
Acquisitions | |||||||||||||||||
Face amount of debt | 1,000 | $ 1,000 | |||||||||||||||
Maximum borrowing capacity of revolving credit facility | $ 2,250 | $ 3,000 | $ 3,000 | ||||||||||||||
Currency Exchange Rate Risk | Rexam PLC | Derivatives Not Designated As Hedging Instruments | |||||||||||||||||
Acquisitions | |||||||||||||||||
Notional amount of derivatives | £ 1,800,000,000 | 2,700 | |||||||||||||||
Interest rate swap agreements | Rexam PLC | Interest rate swap agreements | Derivatives Not Designated As Hedging Instruments | |||||||||||||||||
Acquisitions | |||||||||||||||||
Notional amount of derivatives | € | € 1,750 | € 1,750 | |||||||||||||||
Term C Loan, euro denominated | |||||||||||||||||
Acquisitions | |||||||||||||||||
Long-term debt | $ 92.9 | ||||||||||||||||
5.25% Senior Notes, due June 2025 | |||||||||||||||||
Acquisitions | |||||||||||||||||
Long-term debt | $ 1,000 | $ 1,000 | |||||||||||||||
Interest rate (as a percent) | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | |||||||||||
Senior Notes 4.375 Percent Due 2020 | |||||||||||||||||
Acquisitions | |||||||||||||||||
Long-term debt | $ 1,000 | ||||||||||||||||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | 4.375% | |||||||||||||
Senior Notes 4.375 Percent Due 2020 | Rexam PLC | |||||||||||||||||
Acquisitions | |||||||||||||||||
Long-term debt | $ 1,000 | ||||||||||||||||
Senior Notes 3.5 Percent Due 2020 | |||||||||||||||||
Acquisitions | |||||||||||||||||
Long-term debt | € | € 400 | € 400 | |||||||||||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||||||
Senior Notes 4.3755 Percent Due 2023 | |||||||||||||||||
Acquisitions | |||||||||||||||||
Long-term debt | € | € 700 | € 700 | |||||||||||||||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | 4.375% |
Business Consolidation and Ot56
Business Consolidation and Other Activities (Details) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013USD ($)oz | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)oz | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)oz | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Jul. 31, 2013USD ($) | |
Business consolidation and other activities | |||||||||
Business consolidation and other activities | $ (194.7) | $ (80.5) | $ (78.8) | ||||||
Accounts receivable balance | $ 800 | 800 | $ 759.3 | ||||||
Foreign currency gains and (losses) of restricted cash | (1.5) | (0.2) | 0.6 | ||||||
(Loss) on cross-currrency swap | (69.1) | (23.2) | 5 | ||||||
Long-term Debt | 3,048.8 | 3,048.8 | 5,107.8 | ||||||
Ball Corporation | |||||||||
Business consolidation and other activities | |||||||||
Business consolidation and other activities | (159.4) | (11.2) | (0.7) | ||||||
Aerospace & technologies | |||||||||
Business consolidation and other activities | |||||||||
Charges for other insignificant activities | 0.7 | ||||||||
Operating Segments | Metal beverage packaging, Americas and Asia | |||||||||
Business consolidation and other activities | |||||||||
Business consolidation and other activities | (24.1) | (7.5) | (3.6) | ||||||
Gain on Business Interruption Insurance Recovery | 3.5 | ||||||||
Compensation received for reimbursement of severance costs incurred in connection with facilities closure and relocation | 5 | 6.2 | |||||||
Charges for other insignificant activities | 1.8 | ||||||||
Compensation agreement, pretax amount | $ 72 | ||||||||
Severance | 7.2 | ||||||||
Other costs which will not be compensated | 1.6 | ||||||||
Charges to eliminate 12-ounce beverage can production from facility | $ 9.7 | ||||||||
Weight of container (in ounces) | oz | 12 | 12 | 12 | ||||||
Charges related to facilities closure | 1.7 | $ 11.3 | |||||||
Accelerated depreciation | 4.6 | ||||||||
Severance, pension and other employee benefits | 2.1 | ||||||||
Other closure costs | 3 | ||||||||
Noncash charge for settlement | (13.9) | ||||||||
Amount recognized in cost of sales for business interruption | 4.1 | ||||||||
Operating Segments | Metal beverage packaging, Americas and Asia | VIRGINIA | |||||||||
Business consolidation and other activities | |||||||||
Non-cash charge for settlements | 18.8 | ||||||||
Charges for other insignificant activities | 2 | ||||||||
Severance, pension and other employee benefits | 16.8 | ||||||||
Operating Segments | Metal beverage packaging, Americas and Asia | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||
Business consolidation and other activities | |||||||||
Loss on sale of facilities | (0.4) | ||||||||
Operating Segments | Metal beverage packaging, Americas and Asia | Land and buildings | |||||||||
Business consolidation and other activities | |||||||||
Compensation received for reimbursement of severance costs incurred in connection with facilities closure and relocation | 34 | ||||||||
Gain on sale of property | 26.2 | ||||||||
Operating Segments | Metal beverage packaging, Americas and Asia | Machinery and equipment | |||||||||
Business consolidation and other activities | |||||||||
Compensation received for reimbursement of severance costs incurred in connection with facilities closure and relocation | 26.8 | ||||||||
Proceeds from the compensation agreement, amount deferred | $ 23 | $ 23 | 23 | ||||||
Amount of reimbursement used to offset costs | 3.8 | ||||||||
Operating Segments | Metal Beverage Packaging Asia | |||||||||
Business consolidation and other activities | |||||||||
Business consolidation and other activities | (3.5) | ||||||||
Operating Segments | Metal beverage packaging, Europe | |||||||||
Business consolidation and other activities | |||||||||
Business consolidation and other activities | (9.8) | (8.7) | (10.6) | ||||||
Charges for other insignificant activities | 5.1 | ||||||||
Operating Segments | Metal beverage packaging, Europe | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||||||
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 | (0.5) | (41.9) | (63.7) | ||||||
Charges for other insignificant activities | 0.5 | 0.4 | |||||||
Voluntary and involuntary severance | 6.2 | ||||||||
Accounts receivable provision | 16.5 | 27 | |||||||
Charges related to facilities closure | 29 | 4.9 | 5 | ||||||
Accelerated depreciation | 8.8 | ||||||||
Severance, pension and other employee benefits | 16 | ||||||||
Other closure costs | 3.9 | ||||||||
Accounts receivable balance | 46.5 | $ 46.5 | 46.5 | ||||||
Charges related to migrate certain hourly employees from a multi-employer defined benefit pension plan to a Ball-sponsored defined benefit pension plan | 5.9 | ||||||||
Income related to settlement of defined benefit pension liabilities | 3.5 | ||||||||
Write down of land and buildings down to net realizable value | $ 4.2 | ||||||||
Noncash charge for settlement | (10.3) | ||||||||
Operating Segments | Metal Beverage Packaging, Europe, and Corporate | |||||||||
Business consolidation and other activities | |||||||||
Charges for other insignificant activities | $ 1.1 | 4.8 | |||||||
Charge incurred in connection with headcount reductions, cost-out initiatives and relocation of the company's European headquarters from Germany to Switzerland | 4.1 | 11.3 | |||||||
Noncash charge for settlement | (7.2) | ||||||||
Operating Segments | Aerospace & technologies | |||||||||
Business consolidation and other activities | |||||||||
Business consolidation and other activities | 0.7 | (13.9) | (0.2) | ||||||
Noncash charge for settlement | (13.9) | ||||||||
Corporate | |||||||||
Business consolidation and other activities | |||||||||
Business consolidation and other activities | (161) | $ (8.5) | $ (0.7) | ||||||
Corporate | Rexam PLC | |||||||||
Business consolidation and other activities | |||||||||
Charges for other insignificant activities | 0.5 | ||||||||
Professional Services And Other Costs | 97.9 | ||||||||
Recognized Gains (Losses) of associated with its collar and option contracts | (41) | ||||||||
Currency swap | Corporate | Rexam PLC | |||||||||
Business consolidation and other activities | |||||||||
(Loss) on cross-currrency swap | (7.4) | ||||||||
Senior Notes, due 2020 | |||||||||
Business consolidation and other activities | |||||||||
Long-term Debt | € | € 400 | ||||||||
Senior Notes, due 2020 | Corporate | Rexam PLC | |||||||||
Business consolidation and other activities | |||||||||
Long-term Debt | $ 1,000 | ||||||||
Interest rate floor - Euribor | Corporate | Rexam PLC | |||||||||
Business consolidation and other activities | |||||||||
Foreign currency gains and (losses) of restricted cash | $ (14.2) |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables | ||
Trade accounts receivable | $ 759.3 | $ 800 |
Less allowances for doubtful accounts | (5.4) | (7) |
Net trade accounts receivable | 753.9 | 793 |
Other receivables | 131.5 | 164.1 |
Receivables, net | 885.4 | 957.1 |
Net accounts receivable under long-term contracts, due primarily from agencies of the U.S government and their prime contractors | 196.2 | 205.8 |
Recognized sales value of performance not billed and not yet billable to customers | $ 144.7 | 133.3 |
Average length of long-term contracts | 2 years 6 months | |
Average remaining length of contracts | 11 months | |
Customary fees and cost withholdings that will be paid upon milestone or contract completions | $ 195.1 | |
Maximum available sale of the accounts receivables under factoring program | 600 | |
Amount of sale of receivables | $ 478.7 | $ 197.6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories | ||
Raw materials and supplies | $ 437.8 | $ 479.2 |
Work-in-process and finished goods | 504.2 | 579.2 |
Less inventory reserves | (43.6) | (41.7) |
Inventories, net | $ 898.4 | $ 1,016.7 |
Property, Plant and Equipment59
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 5,404.9 | $ 5,033.2 | |
Accumulated depreciation | (2,719) | (2,602.5) | |
Net property, plant and equipment | 2,685.9 | 2,430.7 | |
Depreciation expense | 247.3 | 239.5 | $ 261.3 |
Land | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 69.5 | 64.6 | |
Buildings | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 1,023 | 973.4 | |
Machinery and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 3,904.2 | 3,612.5 | |
Construction-in-progress | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 408.2 | $ 382.7 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill | ||
Balance at the beginning of the period | $ 2,254.5 | $ 2,399.7 |
Business disposition | (1.2) | |
Business acquisition | 35.5 | |
Effects of currency exchange rates | (113.5) | (144) |
Balance at the end of the period | $ 2,176.5 | 2,254.5 |
Percentage of fair value exceeding carrying value | 25.00% | |
Contingent impairment of goodwill | $ 78.3 | |
Metal beverage packaging, Americas and Asia | ||
Goodwill | ||
Balance at the beginning of the period | 739.5 | 740.7 |
Business disposition | (1.2) | |
Balance at the end of the period | 739.5 | 739.5 |
Metal beverage packaging, Europe | ||
Goodwill | ||
Balance at the beginning of the period | 913.9 | 1,037.2 |
Effects of currency exchange rates | (97.3) | (123.3) |
Balance at the end of the period | 816.6 | 913.9 |
Metal food & household products packaging | ||
Goodwill | ||
Balance at the beginning of the period | 592.5 | 613.2 |
Business acquisition | 35.5 | |
Effects of currency exchange rates | (16.2) | (20.7) |
Balance at the end of the period | 611.8 | 592.5 |
Aerospace & technologies | ||
Goodwill | ||
Balance at the beginning of the period | 8.6 | 8.6 |
Balance at the end of the period | $ 8.6 | $ 8.6 |
Restricted Cash (Details)
Restricted Cash (Details) € in Millions, £ in Millions, $ in Millions | Dec. 31, 2015EUR (€) | Dec. 31, 2015GBP (£) | Dec. 31, 2015USD ($) | Feb. 28, 2015GBP (£) | Feb. 19, 2015GBP (£) | Dec. 31, 2014USD ($) |
Restricted cash | ||||||
Total long-term debt | $ 5,107.8 | $ 3,048.8 | ||||
Debt Instrument, Face Amount | 5,100 | 3,000 | ||||
Restricted cash non current | $ 0 | |||||
British Pound Denominated Acquisition Escrow Account | Rexam PLC | ||||||
Restricted cash | ||||||
Invested in escrow account | £ 792 | 1,167 | ||||
U.S. Escrow Account | Rexam PLC | ||||||
Restricted cash | ||||||
Invested in escrow account | 987.5 | |||||
3.50% Senior Notes, euro denominated, due December 2020 | ||||||
Restricted cash | ||||||
Total long-term debt | € 400 | $ 434.5 | ||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | ||
3.50% Senior Notes, euro denominated, due December 2020 | Rexam PLC | ||||||
Restricted cash | ||||||
Total long-term debt | € | € 400 | |||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | |||
4.375% Senior Notes, euro denominated, due December 2023 | ||||||
Restricted cash | ||||||
Total long-term debt | € 700 | $ 760.3 | ||||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | |||
4.375% Senior Notes, euro denominated, due December 2023 | Rexam PLC | ||||||
Restricted cash | ||||||
Total long-term debt | € | € 700 | |||||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | |||
Bridge Facility | ||||||
Restricted cash | ||||||
Debt Instrument, Face Amount | £ | £ 1,900 | £ 3,300 | £ 3,300 |
Intangibles and Other Assets (D
Intangibles and Other Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangibles and Other Assets | ||||
Investments in affiliates | $ 33.2 | $ 34.3 | $ 33.2 | |
Intangible assets (net of accumulated amortization) | 137.1 | 118.4 | 137.1 | |
Accumulated amortization | 115.2 | 132.9 | 115.2 | |
Capitalized software (net of accumulated amortization) | 62.6 | 76.6 | 62.6 | |
Accumulated amortization | 103.8 | 115.6 | 103.8 | |
Company and trust-owned life insurance | 168.1 | 137 | 168.1 | |
Deferred financing costs | 36.3 | 79.7 | 36.3 | |
Long-term deferred tax assets | 66.5 | 59.6 | 66.5 | |
Other | 68.5 | 70.6 | 68.5 | |
Intangibles and Other Assets | 572.3 | 576.2 | 572.3 | |
Amortization expense of intangible assets | 38.2 | $ 41.4 | $ 38.6 | |
Total annual intangible asset amortization expense | ||||
2,016 | 40 | |||
2,017 | 36.3 | |||
2,018 | 32 | |||
2,019 | 24.6 | |||
2,020 | 21.3 | |||
Thereafter | $ 40.1 | |||
Operating Segments | Metal food & household products packaging | ||||
Intangibles and Other Assets | ||||
Provision for Doubtful Accounts | $ 16.5 | $ 27 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases | |||
Maximum risk for lease | $ 19.5 | ||
Future rental payments required under total noncancelable operating leases | |||
2,016 | 33.1 | ||
2,017 | 26.5 | ||
2,018 | 21.1 | ||
2,019 | 16.2 | ||
2,020 | 10.1 | ||
Thereafter | 44.7 | ||
Lease expense for all operating leases | $ 65.6 | $ 81.2 | $ 73.2 |
Debt and Interest Costs (Detail
Debt and Interest Costs (Details) € in Millions, $ in Millions, £ in Billions | Jan. 10, 2014 | Jun. 30, 2015USD ($) | Mar. 31, 2015 | Feb. 28, 2015USD ($) | Jun. 30, 2013USD ($) | May. 31, 2013USD ($) | Mar. 31, 2014USD ($) | Jun. 30, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015GBP (£) | Dec. 31, 2015USD ($) | Feb. 28, 2015GBP (£) | Feb. 28, 2015USD ($) | Feb. 19, 2015GBP (£) | Feb. 19, 2015USD ($) |
Long-term debt | ||||||||||||||||||
Other (including discounts), denominated in various currencies | $ 1.7 | $ (4.5) | ||||||||||||||||
Long-term debt, Total | 3,048.8 | 5,107.8 | ||||||||||||||||
Interest expense | $ 143.2 | 159.9 | $ 183.8 | |||||||||||||||
Debt refinancing and other costs | 116.5 | 33.1 | 28 | |||||||||||||||
Less current portion of long-term debt | (55) | (53.6) | ||||||||||||||||
Long-term debt excluding current maturities | 2,993.8 | 5,054.2 | ||||||||||||||||
Partial extinguishment of committed bridge facility | $ (26.5) | |||||||||||||||||
Economic hedge - interest rate risk | 15.9 | |||||||||||||||||
Fair value of the long-term debt | 3,100 | 5,200 | ||||||||||||||||
Face amount of debt | 3,000 | 5,100 | ||||||||||||||||
Letters of credit, outstanding amount | 16.3 | $ 15.8 | ||||||||||||||||
Leverage ratio, maximum | 4 | 4 | 4 | |||||||||||||||
Long term debt outstanding | ||||||||||||||||||
2,016 | $ 53.6 | |||||||||||||||||
2,017 | 47.6 | |||||||||||||||||
2,018 | 23.5 | |||||||||||||||||
2,019 | 11.3 | |||||||||||||||||
2,020 | 1,446.5 | |||||||||||||||||
Thereafter | 3,525.3 | |||||||||||||||||
Debt Instrument, Unamortized Discount | $ 8.5 | |||||||||||||||||
Total interest paid and accrued | ||||||||||||||||||
Interest paid during the year (net of capitalized interest) | 130 | 168.6 | $ 187.5 | |||||||||||||||
7.125% Senior Notes, due September 2016 | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Interest rate (as a percent) | 7.125% | |||||||||||||||||
Notes tendered for redemption | $ 375 | |||||||||||||||||
Redemption price of senior notes (as a percent) | 105.322% | |||||||||||||||||
7.375% Senior Notes, due September 2019 | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Interest rate (as a percent) | 7.375% | |||||||||||||||||
Redemption price of senior notes (as a percent) | 108.01% | |||||||||||||||||
Long-term debt, Total | $ 315.4 | |||||||||||||||||
Partial extinguishment of committed bridge facility | $ (33.1) | $ (33.1) | ||||||||||||||||
6.75% Senior Notes, due September 2020 | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Interest rate (as a percent) | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | |||||||||||||
Redemption price of senior notes (as a percent) | 103.375% | |||||||||||||||||
Long-term debt, Total | $ 500 | |||||||||||||||||
5.75% Senior Notes, due May 2021 | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Interest rate (as a percent) | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | |||||||||||||
Redemption price of senior notes (as a percent) | 106.096% | |||||||||||||||||
Long-term debt, Total | $ 500 | |||||||||||||||||
5.25% Senior Notes, due June 2025 | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Interest rate (as a percent) | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | |||||||||||||
Long-term debt, Total | $ 1,000 | $ 1,000 | ||||||||||||||||
Partial extinguishment of committed bridge facility | (5) | |||||||||||||||||
5.00% Senior Notes, due March 2022 | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | ||||||||||||||
Long-term debt, Total | $ 750 | $ 750 | ||||||||||||||||
4.375% Senior Notes, due December 2020 | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | |||||||||||||||
Long-term debt, Total | $ 1,000 | |||||||||||||||||
4.375% Senior Notes, euro denominated, due December 2023 | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | |||||||||||||||
Long-term debt, Total | € 700 | $ 760.3 | ||||||||||||||||
Debt refinancing and other costs | 4.6 | |||||||||||||||||
4.00% Senior Notes, due November 2023 | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Notes issued | $ 1,000 | |||||||||||||||||
Interest rate (as a percent) | 4.00% | 4.00% | 4.00% | 4.00% | ||||||||||||||
Long-term debt, Total | $ 1,000 | $ 1,000 | ||||||||||||||||
3.50% Senior Notes, euro denominated, due December 2020 | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | ||||||||||||||
Long-term debt, Total | € 400 | $ 434.5 | ||||||||||||||||
Senior Credit Facilities, due June 2018 (at variable rates) | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Write-off of unamortized financing costs | $ 0.4 | |||||||||||||||||
Term A Loan, U.S. dollar denominated | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Repayment of debt's obligation and settlement of outstanding derivatives | $ 125 | |||||||||||||||||
Early repayment of Term A loan | $ 26.5 | |||||||||||||||||
Term C Loan, euro denominated | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Debt instrument, interest rate (as a percent) | 1.65% | |||||||||||||||||
Repayment of debt's obligation and settlement of outstanding derivatives | $ 92.9 | |||||||||||||||||
Long-term debt, Total | $ 92.9 | |||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Borrowing capacity of revolving credit facility | $ 2,250 | $ 3,000 | $ 3,000 | |||||||||||||||
Partial extinguishment of committed bridge facility | (5) | |||||||||||||||||
Face amount of debt | $ 1,000 | $ 1,000 | ||||||||||||||||
Bridge Facility | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Partial extinguishment of committed bridge facility | (10.7) | |||||||||||||||||
Face amount of debt | £ | £ 1.9 | £ 3.3 | £ 3.3 | |||||||||||||||
Latapack-Ball Notes Payable (at various rates and terms), denominated in various currencies | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Debt instrument, interest rate (as a percent) | 4.14% | 4.35% | 4.35% | 4.35% | ||||||||||||||
Long-term debt, Total | $ 204.2 | $ 167.5 | ||||||||||||||||
Accounts receivable securitization agreement, current | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Amount of credit facility outstanding and due on demand | 110 | 0 | ||||||||||||||||
Accounts receivable securitization agreement, current | Maximum | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Borrowing capacity of revolving credit facility | 140 | |||||||||||||||||
Accounts receivable securitization agreement, current | Minimum | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Borrowing capacity of revolving credit facility | 90 | |||||||||||||||||
Committed multi-currency revolving credit facilities | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Available borrowing capacity under line of credit facility | 2,200 | |||||||||||||||||
Short-term uncommitted credit facilities | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Amount of credit facility outstanding and due on demand | $ 10.1 | $ 23.7 | ||||||||||||||||
Weighted average interest rate of the outstanding short-term facilities (as a percent) | 1.50% | 0.90% | 0.90% | 0.90% | ||||||||||||||
Available borrowing capacity under line of credit facility | $ 452 | |||||||||||||||||
3.5% and 4.375% senior notes | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Debt refinancing and other costs | 4.6 | |||||||||||||||||
6.75% and 5.75% senior notes | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Partial extinguishment of committed bridge facility | (55.8) | |||||||||||||||||
Senior Credit Facilities | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Debt refinancing cost | 1.7 | |||||||||||||||||
Unsecured, committed bridge facility | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Debt refinancing and other costs | $ 22.8 | |||||||||||||||||
LIBOR | Maximum | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Spread (as a percent) | 1.75% | |||||||||||||||||
LIBOR | Minimum | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Spread (as a percent) | 1.25% | |||||||||||||||||
LIBOR | Bridge Facility | Maximum | ||||||||||||||||||
Long-term debt | ||||||||||||||||||
Spread (as a percent) | 7.00% |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings before income taxes: | |||||||||||
U.S | $ 46.4 | $ 279.7 | $ 242.9 | ||||||||
Foreign | 299.1 | 365.9 | 340.7 | ||||||||
Earnings before taxes | $ 62.6 | $ 17.6 | $ 237.8 | $ 27.5 | $ 98.3 | $ 187.9 | $ 215.3 | $ 144.1 | 345.5 | 645.6 | 583.6 |
Current | |||||||||||
U.S. | 26.1 | 50.8 | 47.2 | ||||||||
State and local | 7 | 17.7 | 3.6 | ||||||||
Foreign | 75.7 | 69.5 | 100.4 | ||||||||
Total current | 108.8 | 138 | 151.2 | ||||||||
Deferred | |||||||||||
U.S. | (37.9) | 8.9 | 28.5 | ||||||||
State and local | (4.1) | (1.1) | (0.7) | ||||||||
Foreign | (19.8) | 4.1 | (29.4) | ||||||||
Deferred Income Tax Expense (Benefit), Total | (61.8) | 11.9 | (1.6) | ||||||||
Income Tax Expense (Benefit), Total | 47 | 149.9 | 149.6 | ||||||||
Tax benefit (expense) related to discontinued operations | (0.2) | ||||||||||
Income tax provision reconciliation | |||||||||||
Statutory U.S. federal income tax | 120.9 | 226 | 204.3 | ||||||||
Increase (decrease) due to: | |||||||||||
Foreign tax rate differences | (50.7) | (57.3) | (45.5) | ||||||||
U.S. state and local taxes, net | 1.8 | 6.9 | 1.6 | ||||||||
U.S. taxes on foreign earnings, net of tax credits | 1.7 | 11.8 | 26.4 | ||||||||
U.S. manufacturing deduction | (3.8) | (6.8) | (4.3) | ||||||||
U.S. research and development tax credits | (14.8) | (8.5) | (17.9) | ||||||||
Uncertain tax positions, including interest | (3.6) | (7.9) | (3.4) | ||||||||
Company and trust-owned life insurance | (2.2) | (4.9) | (6.3) | ||||||||
Other, net | (2.3) | (9.4) | (5.3) | ||||||||
Income Tax Expense (Benefit), Total | $ 47 | $ 149.9 | $ 149.6 | ||||||||
Effective tax rate expressed as a percentage of pre-tax earnings | 13.60% | 23.20% | 25.60% |
Taxes on Income (Details 2)
Taxes on Income (Details 2) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2010 | |
Taxes on Income | ||||
Net earnings | $ 302.9 | $ 498 | $ 435 | |
Income tax holiday period | 10 years | |||
Exemption reduced income tax | $ 16.1 | 16.4 | 14.7 | |
Amount of earnings of foreign subsidiaries on which deferred taxes have not been provided | 2,021.7 | |||
Federal withholding tax provision | 0 | |||
Net U.S. taxes primarily provided for Brazil, Canada and PRC earnings | 1.7 | 11.8 | 26.4 | |
Net income taxes payments | 58.4 | 163.2 | $ 111.4 | |
Deferred tax assets: | ||||
Deferred compensation | 109.6 | 105.7 | ||
Accrued employee benefits | 113 | 128.1 | ||
Plant closure costs | 3.1 | 3.4 | ||
Accrued pensions | 177.3 | 175.5 | ||
Inventory and other reserves | 21.2 | 19.4 | ||
Net operating losses, foreign tax credits and other tax attributes | 105 | 108.8 | ||
Unrealized losses on currency exchange and derivative transactions | 57.1 | 24.4 | ||
Transaction costs | 33.9 | |||
Other | 32.4 | 26.2 | ||
Total deferred tax assets | 652.6 | 591.5 | ||
Valuation allowance | (90.3) | (92.4) | ||
Net deferred tax assets | 562.3 | 499.1 | ||
Deferred tax liabilities: | ||||
Depreciation | (267.2) | (242.4) | ||
Goodwill and other intangible assets | (155.2) | (141.1) | ||
Other | (17.3) | (30.2) | ||
Total deferred tax liabilities | (439.7) | (413.7) | ||
Net deferred tax asset (liability) | 122.6 | 85.4 | ||
Net deferred tax asset (liability) included in the consolidated balance sheets: | ||||
Deferred taxes and other current assets | 96.3 | 54.9 | ||
Intangibles and other assets, net | 59.6 | 66.5 | ||
Other current liabilities | (3.1) | (3.6) | ||
Deferred taxes and other liabilities | (30.2) | (32.4) | ||
Net deferred tax asset | 122.6 | $ 85.4 | ||
Maximum | ||||
Taxes on Income | ||||
Foreign annual abatement of tax over the income tax holiday period | 33.9 | |||
Ball's Serbian subsidiary | ||||
Taxes on Income | ||||
Income tax holiday period | 10 years | |||
Income tax credit as percentage of additional local investment | 80.00% | |||
Foreign annual abatement of tax over the income tax holiday period | $ 18.8 | |||
Latapack-Ball Embalagens Ltda. (Latapack-Ball) | ||||
Taxes on Income | ||||
Percentage of tax exemption received on certain portion of annual earnings | 19.00% | |||
Number of tax holidays | item | 2 |
Taxes on Income (Details 3)
Taxes on Income (Details 3) $ in Millions | Dec. 31, 2015USD ($) |
Ball Packaging Europe and its subsidiaries | |
Taxes on Income | |
Net operating carryforwards | $ 34.6 |
Related tax benefit | 9.7 |
Ball's Canadian subsidiaries | |
Taxes on Income | |
Net operating carryforwards | 96 |
Related tax benefit | 25.4 |
Ball's Mexican subsidiary | |
Taxes on Income | |
Net operating carryforwards | 23.1 |
Related tax benefit | 6.9 |
Ball US Subsidiary | |
Taxes on Income | |
Related tax benefit | $ 13.9 |
Taxes on Income (Details 4)
Taxes on Income (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
A roll forward of the unrecognized tax benefits related to uncertain income tax positions | |||
Balance at the beginning of the period | $ 65.5 | $ 78.3 | $ 76.6 |
Additions based on tax positions related to the current year | 1 | 1.4 | 1.7 |
Additions for tax positions of prior years | 2.2 | 7.7 | 5.5 |
Reductions for settlements | (8.4) | (7.2) | |
Reductions due to lapse of statute of limitations | (5.7) | (16.5) | (0.2) |
Effect of foreign currency exchange rates | (4.1) | (5.4) | 1.9 |
Balance at the end of the period | 50.5 | 65.5 | 78.3 |
Amount of unrecognized tax benefits that, if recognized, would reduce tax expense | 57.2 | ||
Additional income tax expense related to interest on unrecognized tax benefit | 1.6 | 1.3 | 2.7 |
Accrued interest related to unrecognized tax benefit | 9.2 | 11.2 | |
Annual provision (benefit) for income taxes | 47 | 149.9 | 149.6 |
Accrued penalties related to unrecognized tax benefit | 0 | ||
Maximum | |||
A roll forward of the unrecognized tax benefits related to uncertain income tax positions | |||
Amount by which it is reasonably possible that unrecognized tax benefits may decrease within the next 12 months | 0.1 | ||
Ball Corporation | |||
A roll forward of the unrecognized tax benefits related to uncertain income tax positions | |||
Annual provision (benefit) for income taxes | (120.5) | $ (23.1) | $ (35.2) |
Foreign | |||
Taxes on Income | |||
Tax credit carryforwards expiring between 2015 and 2024 | $ 47.1 |
Employee Benefit Obligations (D
Employee Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Benefit Obligations | |||
Underfunded defined benefit pension liabilities | $ 705.1 | $ 724.1 | |
Less current portion and prepaid pension assets | (16.6) | (19.4) | |
Long-term defined benefit pension liability | 688.5 | 704.7 | |
Retiree medical and other postemployment benefits | 147.8 | 169 | |
Deferred compensation plans | 280.8 | 272.2 | |
Other | 30.1 | 32.4 | |
Employee benefit obligations | $ 1,147.2 | 1,178.3 | |
Imposition of nondeductible excise tax, if a multiemployer defined benefit pension plan fails to satisfy certain minimum funding requirements (as a percent) | 5.00% | ||
Expected benefit payments | |||
Years 2020 through 2025 | $ 75 | ||
Defined Benefit Pension Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation at prior year end | 2,159.3 | 1,988.8 | |
Service cost | 67 | 59.7 | $ 60.8 |
Interest cost | 75.6 | 87.7 | 79.2 |
Benefits paid | (127.9) | (84.1) | |
Net actuarial (gains) losses | (108) | 289.4 | |
Effect of exchange rates | (64.5) | (73.2) | |
Settlements/ curtailments/ special termination | 3.8 | (102.8) | |
Plan amendments and other | 3.1 | (6.2) | |
Benefit obligation at year end | 2,008.4 | 2,159.3 | 1,988.8 |
Change in plan assets: | |||
Fair value of plan assets at the beginning of the period | 1,435.2 | 1,386.9 | |
Actual return on plan assets | (1.5) | 113.6 | |
Employer contributions | 2.2 | 121.2 | |
Contributions to unfunded German plans | 18.1 | 22.2 | |
Benefits paid | (127.9) | (84.1) | |
Effect of exchange rates | (22.8) | (21.8) | |
Settlements | (102.8) | ||
Fair value of plan assets at the end of the period | 1,303.3 | 1,435.2 | 1,386.9 |
Underfunded status | (705.1) | (724.1) | |
Amounts recognized in the consolidated balance sheets | |||
Prepaid pension cost | 1.5 | 1.8 | |
Defined benefit pension liabilities | (706.6) | (725.9) | |
Net amount recognized | (705.1) | (724.1) | |
Amounts recognized in accumulated other comprehensive income | |||
Net actuarial loss | 715.5 | 789.3 | |
Net prior service cost (credit) | 9.6 | 6 | |
Tax effect and foreign exchange rates | (280.2) | (289.1) | |
Accumulated other comprehensive earnings (loss) | 444.9 | 506.2 | |
Benefit plans with an accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | 1,721.1 | 1,856.2 | |
Accumulated benefit obligation | 1,640.3 | 1,766.3 | |
Fair value of plan assets | 1,022.6 | 1,138.5 | |
Ball-sponsored plans: | |||
Service cost | 67 | 59.7 | 60.8 |
Interest cost | 75.6 | 87.7 | 79.2 |
Expected return on plan assets | (98.9) | (99.6) | (94) |
Amortization of prior service cost | (1.5) | (0.6) | (0.4) |
Recognized net actuarial loss | 48.2 | 37.7 | 50.3 |
Curtailment loss | 4.9 | 45.3 | 7.8 |
Net periodic benefit cost for Ball-sponsored plans | 95.3 | 130.2 | 103.7 |
Estimated actuarial net gain (loss) that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during next fiscal year | (37.4) | ||
Estimated prior service cost (benefit) that will be amortized from accumulated other comprehensive earnings (loss) into net periodic benefit cost during next fiscal year | 1.4 | ||
Charge for settlements | 102.8 | ||
Multi-employer plans: | |||
Net periodic benefit cost, excluding curtailment loss | 1.3 | 2 | 2.6 |
Curtailment loss | 9.8 | ||
Net periodic benefit cost for multiemployer plans | 1.3 | 2 | 12.4 |
Total net periodic benefit cost | 96.6 | 132.2 | 116.1 |
Defined Benefit Pension Plans | Minimum | |||
Expected benefit payments | |||
2,018 | 16 | ||
Defined Benefit Pension Plans | Funded plans | |||
Expected benefit payments | |||
2,016 | 94.1 | ||
2,017 | 97.4 | ||
2,018 | 100.9 | ||
2,019 | 104.5 | ||
2,020 | 108.6 | ||
Years 2020 through 2025 | 584 | 584 | |
Defined Benefit Pension Plans | Unfunded German plans | Minimum | |||
Expected benefit payments | |||
2,016 | 16 | ||
2,017 | 16 | ||
2,019 | 16 | ||
2,020 | 16 | ||
Defined Benefit Pension Plans | Unfunded German plans | Maximum | |||
Expected benefit payments | |||
2,016 | 18 | ||
2,017 | 18 | ||
2,018 | 18 | ||
2,019 | 18 | ||
2,020 | 18 | ||
U.S. | |||
Change in projected benefit obligation: | |||
Benefit obligation at prior year end | 1,416.1 | 1,284.2 | |
Service cost | 52.1 | 46.3 | 48.7 |
Interest cost | 57.2 | 62 | 55.2 |
Benefits paid | (99.9) | (51.4) | |
Net actuarial (gains) losses | (70.9) | 184 | |
Settlements/ curtailments/ special termination | 3.8 | (102.8) | |
Plan amendments and other | 3.3 | (6.2) | |
Benefit obligation at year end | 1,361.7 | 1,416.1 | 1,284.2 |
Change in plan assets: | |||
Fair value of plan assets at the beginning of the period | 1,098 | 1,109.5 | |
Actual return on plan assets | (11.1) | 48.4 | |
Employer contributions | 0.6 | 94.3 | |
Benefits paid | (99.9) | (51.4) | |
Settlements | (102.8) | ||
Noncash charge for settlement | 45.3 | ||
Fair value of plan assets at the end of the period | 987.6 | 1,098 | 1,109.5 |
Underfunded status | (374.1) | (318.1) | |
Accumulated benefit obligation | 1,301.5 | 1,355.2 | |
Amounts recognized in the consolidated balance sheets | |||
Defined benefit pension liabilities | (374.1) | (318.1) | |
Net amount recognized | (374.1) | (318.1) | |
Amounts recognized in accumulated other comprehensive income | |||
Net actuarial loss | 586.7 | 606.3 | |
Net prior service cost (credit) | 11.2 | 7.9 | |
Tax effect and foreign exchange rates | (253.1) | (239) | |
Accumulated other comprehensive earnings (loss) | 344.8 | 375.2 | |
Benefit plans with an accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | 1,361.7 | 1,416 | |
Accumulated benefit obligation | 1,301.5 | 1,355.2 | |
Fair value of plan assets | 987.6 | 1,098 | |
Ball-sponsored plans: | |||
Service cost | 52.1 | 46.3 | 48.7 |
Interest cost | 57.2 | 62 | 55.2 |
Expected return on plan assets | (79.2) | (82.6) | (77.3) |
Amortization of prior service cost | (1.1) | (0.1) | |
Recognized net actuarial loss | 39 | 29.5 | 42.5 |
Curtailment loss | 4.9 | 45.3 | 6.1 |
Net periodic benefit cost for Ball-sponsored plans | 72.9 | 100.4 | 75.2 |
Charge for settlements | 102.8 | ||
Multi-employer plans: | |||
Net periodic benefit cost, excluding curtailment loss | 1.3 | 2 | 2.6 |
Curtailment loss | 9.8 | ||
Net periodic benefit cost for multiemployer plans | 1.3 | 2 | 12.4 |
Total net periodic benefit cost | 74.2 | 102.4 | 87.6 |
Foreign. | |||
Change in projected benefit obligation: | |||
Benefit obligation at prior year end | 743.2 | 704.6 | |
Service cost | 14.9 | 13.4 | 12.1 |
Interest cost | 18.4 | 25.7 | 24 |
Benefits paid | (28) | (32.7) | |
Net actuarial (gains) losses | (37.1) | 105.4 | |
Effect of exchange rates | (64.5) | (73.2) | |
Plan amendments and other | (0.2) | ||
Benefit obligation at year end | 646.7 | 743.2 | 704.6 |
Change in plan assets: | |||
Fair value of plan assets at the beginning of the period | 337.2 | 277.4 | |
Actual return on plan assets | 9.6 | 65.2 | |
Employer contributions | 1.6 | 26.9 | |
Contributions to unfunded German plans | 18.1 | 22.2 | |
Benefits paid | (28) | (32.7) | |
Effect of exchange rates | (22.8) | (21.8) | |
Fair value of plan assets at the end of the period | 315.7 | 337.2 | 277.4 |
Underfunded status | (331) | (406) | |
Accumulated benefit obligation | 592.5 | 675.1 | |
Amounts recognized in the consolidated balance sheets | |||
Prepaid pension cost | 1.5 | 1.8 | |
Defined benefit pension liabilities | (332.5) | (407.8) | |
Net amount recognized | (331) | (406) | |
Amounts recognized in accumulated other comprehensive income | |||
Net actuarial loss | 128.8 | 183 | |
Net prior service cost (credit) | (1.6) | (1.9) | |
Tax effect and foreign exchange rates | (27.1) | (50.1) | |
Accumulated other comprehensive earnings (loss) | 100.1 | 131 | |
Benefit plans with an accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | 359.4 | 440.2 | |
Accumulated benefit obligation | 338.8 | 411.1 | |
Fair value of plan assets | 35 | 40.5 | |
Ball-sponsored plans: | |||
Service cost | 14.9 | 13.4 | 12.1 |
Interest cost | 18.4 | 25.7 | 24 |
Expected return on plan assets | (19.7) | (17) | (16.7) |
Amortization of prior service cost | (0.4) | (0.5) | (0.4) |
Recognized net actuarial loss | 9.2 | 8.2 | 7.8 |
Curtailment loss | 1.7 | ||
Net periodic benefit cost for Ball-sponsored plans | 22.4 | 29.8 | 28.5 |
Multi-employer plans: | |||
Total net periodic benefit cost | 22.4 | 29.8 | 28.5 |
Germany. | |||
Change in plan assets: | |||
Underfunded status | 317.1 | 393.9 | |
Other post retirement benefits | |||
Change in projected benefit obligation: | |||
Benefit obligation at prior year end | 154.1 | 154.1 | 155.4 |
Service cost | 1.5 | 1.4 | 1.7 |
Interest cost | 6 | 7.3 | 6.6 |
Benefits paid | (8.7) | (11.4) | |
Net actuarial (gains) losses | (17.3) | 3.1 | |
Special termination benefits | 2.1 | 1.9 | |
Effect of exchange rates | (2.9) | (1.7) | |
Benefit obligation at year end | 134.8 | 154.1 | 154.1 |
Change in plan assets: | |||
Benefits paid | (8.7) | (11.4) | |
Ball-sponsored plans: | |||
Service cost | 1.5 | 1.4 | 1.7 |
Interest cost | 6 | 7.3 | 6.6 |
Amortization of prior service cost | (0.6) | (0.5) | (0.5) |
Recognized net actuarial loss | (1.6) | (1.5) | (0.6) |
Net periodic benefit cost for Ball-sponsored plans | 7.4 | $ 6.7 | $ 9.1 |
Estimated actuarial net gain (loss) that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during next fiscal year | 2.5 | ||
Estimated prior service cost (benefit) that will be amortized from accumulated other comprehensive earnings (loss) into net periodic benefit cost during next fiscal year | (0.6) | ||
Excluding German Plans | |||
Expected benefit payments | |||
Contributions to pension plans | $ 31 |
Employee Benefit Obligations 70
Employee Benefit Obligations (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted-average assumptions used to determine net periodic benefit cost for years ended | |||
Market related value of plan assets used to calculate expected return | $ 1,395.3 | $ 1,470.9 | $ 1,238.5 |
Corridor percentage considered for amortization of accumulated actuarial gains and losses | 10.00% | ||
Defined Benefit Pension Plans | |||
Weighted-average assumptions used to determine benefit obligations | |||
Effect of one quarter of a percentage point reduction in the expected return on pension assets assumption, on pension expense | $ 3.4 | ||
Effect of quarter of a percentage point reduction in the discount rate applied to the pension liability, on pension expense | $ 4.8 | ||
Weighted-average assumptions used to determine net periodic benefit cost for years ended | |||
Corridor percentage considered for amortization of accumulated actuarial gains and losses | 10.00% | ||
U.S. | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (as a percent) | 4.60% | 4.15% | 5.00% |
Rate of compensation increase (as a percent) | 4.80% | 4.80% | 4.80% |
Weighted-average assumptions used to determine net periodic benefit cost for years ended | |||
Discount rate (as a percent) | 4.15% | 5.00% | 4.13% |
Rate of compensation increase (as a percent) | 4.80% | 4.80% | 4.80% |
Expected long-term rate of return on assets (as a percent) | 7.25% | 7.25% | 7.63% |
Canada. | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (as a percent) | 3.50% | 3.50% | 4.25% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 3.00% |
Weighted-average assumptions used to determine net periodic benefit cost for years ended | |||
Discount rate (as a percent) | 3.50% | 4.25% | 4.00% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 3.00% |
Expected long-term rate of return on assets (as a percent) | 4.00% | 4.56% | 4.55% |
Time period for review of the expected benefit payments to select discount rate | 60 years | ||
United Kingdom. | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (as a percent) | 3.75% | 3.75% | 4.50% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 4.25% |
Pension increase (as a percent) | 3.15% | 3.15% | 3.40% |
Weighted-average assumptions used to determine net periodic benefit cost for years ended | |||
Discount rate (as a percent) | 3.75% | 4.50% | 4.50% |
Rate of compensation increase (as a percent) | 3.00% | 4.25% | 3.75% |
Pension increase (as a percent) | 3.15% | 3.40% | 2.90% |
Expected long-term rate of return on assets (as a percent) | 6.50% | 6.50% | 7.00% |
Minimum term of bond used to discount cash flows for determining equivalent level discount rate | 15 years | ||
Germany. | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (as a percent) | 2.25% | 1.75% | 3.25% |
Rate of compensation increase (as a percent) | 2.50% | 2.50% | 2.75% |
Pension increase (as a percent) | 1.75% | 1.75% | 1.75% |
Weighted-average assumptions used to determine net periodic benefit cost for years ended | |||
Discount rate (as a percent) | 1.75% | 3.25% | 3.25% |
Rate of compensation increase (as a percent) | 2.50% | 2.75% | 2.75% |
Pension increase (as a percent) | 1.75% | 1.75% | 1.75% |
Minimum term of bond used to discount cash flows for determining equivalent level discount rate | 15 years |
Employee Benefit Obligations 71
Employee Benefit Obligations (Details 3) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Pension Plans | ||
Target asset allocations | ||
Weighted average asset allocations (as a percent) | 100.00% | 100.00% |
Defined Benefit Pension Plans | Cash and cash equivalents | ||
Target asset allocations | ||
Target asset allocations, low end of range (as a percent) | 0.00% | |
Weighted average asset allocations (as a percent) | 2.00% | 3.00% |
Defined Benefit Pension Plans | Corporate equity securities | ||
Target asset allocations | ||
Target asset allocations, low end of range (as a percent) | 10.00% | |
Weighted average asset allocations (as a percent) | 37.00% | 38.00% |
Defined Benefit Pension Plans | Fixed income securities | ||
Target asset allocations | ||
Target asset allocations, low end of range (as a percent) | 25.00% | |
Weighted average asset allocations (as a percent) | 52.00% | 50.00% |
Defined Benefit Pension Plans | Alternative investments | ||
Target asset allocations | ||
Target asset allocations, low end of range (as a percent) | 0.00% | |
Weighted average asset allocations (as a percent) | 9.00% | 9.00% |
U.S. | Cash and cash equivalents | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 10.00% | |
U.S. | Corporate equity securities | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 75.00% | |
U.S. | Fixed income securities | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 70.00% | |
U.S. | Alternative investments | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 35.00% | |
U.S. | Large-cap equities | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 25.00% | |
U.S. | Mid-cap equities | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 10.00% | |
U.S. | Small-cap equities | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 10.00% | |
U.S. | Foreign equities | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 35.00% | |
U.S. | Special equities | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 35.00% | |
U.S. | Holdings in Ball Corporation common stock or Ball bonds | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 5.00% | |
U.S. | Non-investment grade bonds | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 10.00% | |
U.S. | Bank loans | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 10.00% | |
U.S. | International bonds | ||
Target asset allocations | ||
Target asset allocations, high end of range (as a percent) | 15.00% | |
Canada. | Cash and cash equivalents | ||
Target asset allocations | ||
Target asset allocations, low end of range (as a percent) | 0.00% | |
Target asset allocations, high end of range (as a percent) | 2.00% | |
Canada. | Corporate equity securities | ||
Target asset allocations | ||
Target asset allocations, low end of range (as a percent) | 8.00% | |
Target asset allocations, high end of range (as a percent) | 12.00% | |
Canada. | Fixed income securities | ||
Target asset allocations | ||
Target asset allocations, low end of range (as a percent) | 88.00% | |
Target asset allocations, high end of range (as a percent) | 92.00% | |
United Kingdom. | Cash and cash equivalents | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 4.00% | |
United Kingdom. | Corporate equity securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 20.00% | |
United Kingdom. | Fixed income securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 64.00% | |
United Kingdom. | Absolute return funds | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 9.00% | |
United Kingdom. | Alternative investments | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 3.00% |
Employee Benefit Obligations 72
Employee Benefit Obligations (Details 4) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Pension Plans | |||
Employee Benefit Obligations | |||
Total assets | $ 1,303.3 | $ 1,435.2 | $ 1,386.9 |
U.S. | |||
Employee Benefit Obligations | |||
Total assets | 987.6 | 1,098 | 1,109.5 |
U.S. | Cash and cash equivalents | |||
Employee Benefit Obligations | |||
Total assets | 68.9 | 89.6 | |
U.S. | Consumer discretionary Securities | |||
Employee Benefit Obligations | |||
Total assets | 46.6 | 53.8 | |
U.S. | Industrials corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 61.2 | 58.7 | |
U.S. | Financials corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 37.4 | ||
U.S. | Healthcare Corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 25.9 | ||
U.S. | Information technology corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 53.2 | 57.5 | |
U.S. | Other corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 52.5 | 151 | |
U.S. | U.S. government and agency securities-FHLMC mortgage backed securities | |||
Employee Benefit Obligations | |||
Total assets | 14.4 | 14.7 | |
U.S. | U.S. government and agency securities-FNMA mortgage backed securities | |||
Employee Benefit Obligations | |||
Total assets | 55.9 | 49.9 | |
U.S. | U.S. government and agency securities-Treasury bonds | |||
Employee Benefit Obligations | |||
Total assets | 31.7 | ||
U.S. | U.S. government and agency securities-Other | |||
Employee Benefit Obligations | |||
Total assets | 23.9 | 62.2 | |
U.S. | Corporate bonds and notes-Financials | |||
Employee Benefit Obligations | |||
Total assets | 91.5 | 96.5 | |
U.S. | Corporate bonds and notes-Industrials | |||
Employee Benefit Obligations | |||
Total assets | 21.1 | ||
U.S. | Corporate bonds and notes-Utilities | |||
Employee Benefit Obligations | |||
Total assets | 21.5 | 33.4 | |
U.S. | Corporate bonds and notes-Private placement | |||
Employee Benefit Obligations | |||
Total assets | 37.3 | 44.8 | |
U.S. | Corporate bonds and notes-Other | |||
Employee Benefit Obligations | |||
Total assets | 84.6 | 113.5 | |
U.S. | International Commingled Funds | |||
Employee Benefit Obligations | |||
Total assets | 66.6 | 88.2 | |
U.S. | Other Commingled Funds | |||
Employee Benefit Obligations | |||
Total assets | 66.3 | 53.6 | |
U.S. | Limited partnerships and other | |||
Employee Benefit Obligations | |||
Total assets | 127.1 | 130.6 | |
U.S. | Level 1 | |||
Employee Benefit Obligations | |||
Total assets | 322.8 | 359.4 | |
U.S. | Level 1 | Cash and cash equivalents | |||
Employee Benefit Obligations | |||
Total assets | 2.9 | 0.9 | |
U.S. | Level 1 | Consumer discretionary Securities | |||
Employee Benefit Obligations | |||
Total assets | 46.6 | 53.8 | |
U.S. | Level 1 | Industrials corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 61.2 | 58.7 | |
U.S. | Level 1 | Financials corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 37.4 | ||
U.S. | Level 1 | Healthcare Corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 25.9 | ||
U.S. | Level 1 | Information technology corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 53.2 | 57.5 | |
U.S. | Level 1 | Other corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 34.1 | 116.6 | |
U.S. | Level 1 | U.S. government and agency securities-Treasury bonds | |||
Employee Benefit Obligations | |||
Total assets | 31.7 | ||
U.S. | Level 1 | U.S. government and agency securities-Other | |||
Employee Benefit Obligations | |||
Total assets | 11.7 | 49.1 | |
U.S. | Level 1 | International Commingled Funds | |||
Employee Benefit Obligations | |||
Total assets | 15.9 | 19.5 | |
U.S. | Level 1 | Other Commingled Funds | |||
Employee Benefit Obligations | |||
Total assets | 2.2 | 3.3 | |
U.S. | Level 2 | |||
Employee Benefit Obligations | |||
Total assets | 602.1 | 675.6 | |
U.S. | Level 2 | Cash and cash equivalents | |||
Employee Benefit Obligations | |||
Total assets | 66 | 88.7 | |
U.S. | Level 2 | Other corporate equity securities | |||
Employee Benefit Obligations | |||
Total assets | 18.4 | 34.4 | |
U.S. | Level 2 | U.S. government and agency securities-FHLMC mortgage backed securities | |||
Employee Benefit Obligations | |||
Total assets | 14.4 | 14.7 | |
U.S. | Level 2 | U.S. government and agency securities-FNMA mortgage backed securities | |||
Employee Benefit Obligations | |||
Total assets | 55.9 | 49.9 | |
U.S. | Level 2 | U.S. government and agency securities-Other | |||
Employee Benefit Obligations | |||
Total assets | 12.2 | 13.1 | |
U.S. | Level 2 | Corporate bonds and notes-Financials | |||
Employee Benefit Obligations | |||
Total assets | 91.5 | 96.5 | |
U.S. | Level 2 | Corporate bonds and notes-Industrials | |||
Employee Benefit Obligations | |||
Total assets | 21.1 | ||
U.S. | Level 2 | Corporate bonds and notes-Utilities | |||
Employee Benefit Obligations | |||
Total assets | 21.5 | 33.4 | |
U.S. | Level 2 | Corporate bonds and notes-Private placement | |||
Employee Benefit Obligations | |||
Total assets | 37.3 | 44.8 | |
U.S. | Level 2 | Corporate bonds and notes-Other | |||
Employee Benefit Obligations | |||
Total assets | 84.6 | 113.5 | |
U.S. | Level 2 | International Commingled Funds | |||
Employee Benefit Obligations | |||
Total assets | 50.7 | 68.7 | |
U.S. | Level 2 | Other Commingled Funds | |||
Employee Benefit Obligations | |||
Total assets | 64.1 | 50.3 | |
U.S. | Level 2 | Limited partnerships and other | |||
Employee Benefit Obligations | |||
Total assets | 64.4 | 67.6 | |
U.S. | Level 3 | |||
Employee Benefit Obligations | |||
Total assets | 62.7 | 63 | $ 51.9 |
U.S. | Level 3 | Limited partnerships and other | |||
Employee Benefit Obligations | |||
Total assets | 62.7 | 63 | |
Canada. | Level 2 | |||
Employee Benefit Obligations | |||
Total assets | 37.3 | 47.1 | |
Canada. | Level 2 | Equity commingled funds | |||
Employee Benefit Obligations | |||
Total assets | 3 | 3.9 | |
Canada. | Level 2 | Fixed income commingled funds | |||
Employee Benefit Obligations | |||
Total assets | 27.5 | 34.5 | |
Canada. | Level 2 | Fixed income securities | |||
Employee Benefit Obligations | |||
Total assets | 6.8 | 8.7 | |
United Kingdom. | Level 2 | |||
Employee Benefit Obligations | |||
Total assets | 272 | 285.4 | |
United Kingdom. | Level 2 | Cash and cash equivalents | |||
Employee Benefit Obligations | |||
Total assets | 10.9 | ||
United Kingdom. | Level 2 | Equity commingled funds | |||
Employee Benefit Obligations | |||
Total assets | 54.4 | 71.3 | |
United Kingdom. | Level 2 | Fixed income commingled funds | |||
Employee Benefit Obligations | |||
Total assets | 174 | 174.1 | |
United Kingdom. | Level 2 | Absolute return funds | |||
Employee Benefit Obligations | |||
Total assets | 24.5 | 17.2 | |
United Kingdom. | Level 2 | Alternative investments | |||
Employee Benefit Obligations | |||
Total assets | $ 8.2 | $ 22.8 |
Employee Benefit Obligations 73
Employee Benefit Obligations (Details 5) - U.S. - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of the U.S. Level 3 assets: | ||
Fair value of plan assets at the beginning of the period | $ 1,098 | $ 1,109.5 |
Fair value of plan assets at the end of the period | 987.6 | 1,098 |
Level 3 | ||
Reconciliation of the U.S. Level 3 assets: | ||
Fair value of plan assets at the beginning of the period | 63 | 51.9 |
Actual return on plan assets relating to assets still held at the reporting date | 3.3 | 9.5 |
Purchases | 7.9 | 9.1 |
Sales | (11.5) | (7.5) |
Fair value of plan assets at the end of the period | $ 62.7 | $ 63 |
Employee Benefit Obligations 74
Employee Benefit Obligations (Details 6) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Compensation Plans | |||
Employer match of deferred compensation (as a percent) | 20.00% | ||
Employer contribution limit per calendar year | $ 20,000 | ||
Number of shares, value equivalent, for each stock unit | 1 | ||
Other Benefit Plans | |||
Percentage of eligible compensation, matched 100% by employer | 3.00% | ||
Percentage of eligible compensation, matched 50% by employer | 2.00% | ||
Employer match of employee contributions of first 3% of eligible compensation (as a percent) | 100.00% | ||
Employer match of employee contributions of next 2% of eligible compensation (as a percent) | 50.00% | ||
Expense associated with the company match | $ 23,600,000 | $ 23,600,000 | $ 23,500,000 |
Aerospace & technologies | |||
Employee Benefit Obligations | |||
Performance-based matching cash contributions by employer limit (as a percent of base salary) | 4.00% | ||
Additional compensation expense related to performance-based program recognized | $ 0 | $ 4,700,000 | $ 0 |
Other post retirement benefits | |||
Employee Benefit Obligations | |||
Increase in the total of service and interest cost due to one-percentage point increase in assumed health care cost trend rate | 200,000 | ||
Decrease in the total of service and interest cost due to one-percentage point decrease in assumed health care cost trend rate | (200,000) | ||
Increase in the postretirement benefit obligation due to one-percentage point increase in assumed health care cost trend rate | 2,900,000 | ||
Decrease in the postretirement benefit obligation due to one-percentage point decrease in assumed health care cost trend rate | $ (2,800,000) | ||
U.S. health care plans | |||
Employee Benefit Obligations | |||
Health care cost trend rate used for pre-65 and post-65 benefits (as a percent) | 7.50% | ||
Rate to which the health care cost trend rate is assumed to decline (as a percent) | 5.00% | ||
Canadian plans | |||
Employee Benefit Obligations | |||
Health care cost trend rate used for pre-65 and post-65 benefits (as a percent) | 4.50% | ||
Rate to which the health care cost trend rate is assumed to decline (as a percent) | 5.00% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2015 | Oct. 31, 2015 | |
Class of Stock | |||||
Number of shares of common stock authorized | 550,000,000 | ||||
Number of shares of preferred stock authorized | 15,000,000 | ||||
Share repurchases, net of issuances | $ 99.5 | $ 360.1 | $ 398.8 | ||
Number of preferred stock purchase rights attached to each outstanding share of common stock | 0.5 | ||||
Number of series A junior participating preferred stock each right entitles the holder to purchase | one-thousandth | ||||
Exercise price per right (in dollars per share) | $ 185 | ||||
Minimum percentage of outstanding common stock to be acquired to trigger rights exchanged for common stock | 10.00% | ||||
Discount on purchase price of common stock of the entity on exercise of rights on acquisition of 10 percent or more of outstanding common stock (as a percent) | 50.00% | ||||
Redemption price of rights (in dollars per share) | $ 0.001 | ||||
Series A Junior Participating Preferred Stock | |||||
Class of Stock | |||||
Number of shares of preferred stock unissued | 550,000 | ||||
Latapack-Ball Embalagens Ltda. (Latapack-Ball) | |||||
Class of Stock | |||||
Treasury stock exchanged (in shares) | 5,700,000 | 5,700,000 |
Shareholders' Equity (Details 2
Shareholders' Equity (Details 2) - USD ($) $ / shares in Units, $ in Millions | Mar. 07, 2014 | Jun. 30, 2014 | Mar. 31, 2014 |
Shareholders' Equity | |||
Accelerated share repurchase agreement amount | $ 100 | ||
Payment made under the agreement | $ 100 | ||
Shares received | 1,538,740 | 245,196 | |
Percentage of treasury stock acquired of total stock | 85.00% | ||
Weighted average price per share for the contract period | $ 56.06 |
Shareholders' Equity (Details 3
Shareholders' Equity (Details 3) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2015 | |
Amounts Reclassified from AOCI | ||||||||||||
Net sales | $ 1,804.6 | $ 2,097 | $ 2,172.3 | $ 1,923.1 | $ 2,032.4 | $ 2,238.9 | $ 2,291.9 | $ 2,006.8 | $ 7,997 | $ 8,570 | $ 8,468.1 | |
Cost of sales | (7,391.8) | (7,731.4) | (7,672.7) | |||||||||
Selling, general and administrative expense | 451.3 | 466.5 | 418.6 | |||||||||
Interest rate contracts recorded in interest expense | (259.7) | (193) | (211.8) | |||||||||
Earnings before taxes | 62.6 | $ 17.6 | $ 237.8 | $ 27.5 | $ 98.3 | $ 187.9 | $ 215.3 | $ 144.1 | 345.5 | 645.6 | 583.6 | |
Tax benefit (provision) on amounts reclassified into earnings | (47) | (149.9) | (149.6) | |||||||||
Net earnings | 302.9 | 498 | 435 | |||||||||
Noncontrolling Interest | ||||||||||||
Noncontrolling interest for consideration of common stock | (17.4) | |||||||||||
Joint Venture At Brazil | ||||||||||||
Noncontrolling Interest | ||||||||||||
Treasury stock exchanged (in shares) | 5.7 | |||||||||||
Noncontrolling interest for consideration of common stock | 403 | |||||||||||
Cash consideration for remaining interest | 17.4 | |||||||||||
Noncontrolling interest carrying value and fair value paid | 220.2 | 220.2 | ||||||||||
Time of acquisition | 200.2 | 200.2 | ||||||||||
Total consideration | $ 420.4 | |||||||||||
Ball Corporation | ||||||||||||
Amounts Reclassified from AOCI | ||||||||||||
Cost of sales | 414.2 | 630 | 571.5 | |||||||||
Selling, general and administrative expense | 80.2 | 77.4 | 81.4 | |||||||||
Interest rate contracts recorded in interest expense | (253.8) | (183.1) | (199.9) | |||||||||
Earnings before taxes | 160.4 | 446.9 | 371.6 | |||||||||
Tax benefit (provision) on amounts reclassified into earnings | 120.5 | 23.1 | 35.2 | |||||||||
Net earnings | 280.9 | 470 | 406.8 | |||||||||
Effective Derivatives (Net of Tax). | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||||||||||
Amounts Reclassified from AOCI | ||||||||||||
Earnings before taxes | (16.7) | (33.4) | (28.5) | |||||||||
Tax benefit (provision) on amounts reclassified into earnings | 6.2 | 2.7 | 7.1 | |||||||||
Net earnings | (10.5) | (30.7) | (21.4) | |||||||||
Effective Derivatives (Net of Tax). | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Commodity contracts | ||||||||||||
Amounts Reclassified from AOCI | ||||||||||||
Net sales | 5.4 | (6.2) | 8.4 | |||||||||
Effective Derivatives (Net of Tax). | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Commodity contract and currency exchange contracts | ||||||||||||
Amounts Reclassified from AOCI | ||||||||||||
Cost of sales | (23.6) | (27.2) | (35.9) | |||||||||
Effective Derivatives (Net of Tax). | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Foreign currency contracts | ||||||||||||
Amounts Reclassified from AOCI | ||||||||||||
Selling, general and administrative expense | 1.7 | |||||||||||
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 | (0.2) | (1) | ||||||||||
Pension and Other Postretirement Benefits. | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||||||||||
Amounts Reclassified from AOCI | ||||||||||||
Earnings before taxes | (46.7) | |||||||||||
Total before tax effect | (81.5) | (48.8) | ||||||||||
Tax benefit (expense) on amounts reclassified into earnings | (17.1) | (30.2) | (18.2) | |||||||||
Recognized gain (loss) | (29.6) | (51.3) | (30.6) | |||||||||
Prior service income | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||||||||||
Amounts Reclassified from AOCI | ||||||||||||
Prior service income (cost) | 1 | 0.6 | 1 | |||||||||
Actuarial gains (losses) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||||||||||
Amounts Reclassified from AOCI | ||||||||||||
Actuarial gains (losses) | $ (47.7) | (36.8) | $ (49.8) | |||||||||
Effect of pension settlement | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||||||||||
Amounts Reclassified from AOCI | ||||||||||||
Effect of pension settlement | $ (45.3) |
Shareholders' Equity (Details 4
Shareholders' Equity (Details 4) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at beginning | $ 1,239.6 | $ 1,416 |
Balance at end | 1,261.3 | 1,239.6 |
Accumulated Other Comprehensive Earnings (Loss) | ||
Balance at the beginning of the period | (522.1) | |
Balance at the end of the period | (639.9) | (522.1) |
Foreign Currency Translation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at beginning | (18.4) | 180.7 |
Other comprehensive earnings (loss) before reclassifications | (165.1) | (199.1) |
Balance at end | (183.5) | (18.4) |
Pension and Other Postretirement Benefits (Net of Tax) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at beginning | (499.9) | (391.8) |
Other comprehensive earnings (loss) before reclassifications | 25.4 | (159.4) |
Amounts reclassified from accumulated other comprehensive earnings (loss) | 29.6 | 51.3 |
Balance at end | (444.9) | (499.9) |
Effective Derivatives (Net of Tax) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at beginning | (3.8) | (38.8) |
Other comprehensive earnings (loss) before reclassifications | (18.2) | 4.3 |
Amounts reclassified from accumulated other comprehensive earnings (loss) | 10.5 | 30.7 |
Balance at end | (11.5) | (3.8) |
AOCI Including Portion Attributable to Noncontrolling Interest | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at beginning | (522.1) | (249.9) |
Other comprehensive earnings (loss) before reclassifications | (157.9) | (354.2) |
Amounts reclassified from accumulated other comprehensive earnings (loss) | 40.1 | 82 |
Balance at end | $ (639.9) | $ (522.1) |
Stock-Based Compensation Prog79
Stock-Based Compensation Programs (Details) | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2015$ / sharesshares | Jan. 31, 2014shares | Jan. 31, 2013shares | Dec. 31, 2015USD ($)installment$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / shares | |
Restricted stock activity, Weighted average grant price | ||||||
Share based compensation expense | $ | $ 24,700,000 | $ 25,100,000 | $ 24,500,000 | |||
Expenses for share-based compensation arrangements, after tax | $ | 15,400,000 | $ 15,600,000 | 14,900,000 | |||
Unrecognized compensation cost related to nonvested share-based compensation arrangements | $ | $ 35,000,000 | |||||
Expected weighted-average period for recognition of unrecognized stock-based compensation costs | 2 years 6 months | |||||
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 | |||||
Outstanding Options, Number of Shares | ||||||
Beginning of year (in shares) | 9,738,030 | 9,738,030 | ||||
Granted (in shares) | 1,231,865 | |||||
Exercised (in shares) | (1,201,987) | |||||
Canceled/forfeited (in shares) | (51,657) | |||||
End of the period (in shares) | 9,716,251 | 9,738,030 | ||||
Vested and exercisable, end of period (in shares) | 6,748,255 | |||||
Reserved for future grants (in shares) | 8,657,680 | |||||
Outstanding Options, Weighted Average Exercise Price | ||||||
Beginning of year (in dollars per share) | $ / shares | $ 32.76 | $ 32.76 | ||||
Granted (in dollars per share) | $ / shares | 66.15 | |||||
Exercised (in dollars per share) | $ / shares | 27.92 | |||||
Canceled/forfeited (in dollars per share) | $ / shares | 46.74 | |||||
End of period (in dollars per share) | $ / shares | 37.50 | $ 32.76 | ||||
Vested and exercisable, end of period (in dollars per share) | $ / shares | $ 30.15 | |||||
Weighted average remaining contractual term of options outstanding | 5 years 3 months 18 days | |||||
Aggregate intrinsic value of options outstanding | $ | $ 342,300,000 | |||||
Weighted average remaining contractual term of options vested and exercisable | 4 years 1 month 6 days | |||||
Aggregate intrinsic value of options vested and exercisable | $ | $ 287,400,000 | |||||
Total fair value of options vested | $ | $ 11,700,000 | $ 13,300,000 | $ 11,400,000 | |||
Weighted average fair value at grant date (in dollars per share) | $ / shares | $ 14.20 | $ 9.81 | $ 8.69 | |||
Weighted average assumptions used in estimation of fair values of options | ||||||
Expected dividend yield (as a percent) | 0.79% | 1.06% | 1.13% | |||
Expected stock price volatility (as a percent) | 22.11% | 21.41% | 22.02% | |||
Risk-free interest rate (as a percent) | 1.39% | 1.65% | 1.02% | |||
Expected life of options | 5 years 10 months 6 days | 5 years 6 months | 5 years 6 months | |||
Stock options | ||||||
Outstanding Options, Weighted Average Exercise Price | ||||||
Cash received from options exercised | $ | $ 21,600,000 | $ 22,900,000 | $ 17,000,000 | |||
Intrinsic value of options exercised | $ | 32,900,000 | 31,400,000 | 17,100,000 | |||
Tax benefit from exercise of options | $ | $ 21,300,000 | |||||
Restricted stock activity, Weighted average grant price | ||||||
Maximum employer's contribution as a percentage of each participating employee's monthly payroll deduction | 20.00% | |||||
Maximum employer's contribution to each participating employee | $ | $ 500 | |||||
Company contributions | $ | $ 3,500,000 | $ 3,500,000 | 3,500,000 | |||
Restricted shares and restricted stock units | ||||||
Stock-Based Compensation Programs | ||||||
Vesting period | 5 years | |||||
Restricted stock activity, Number of shares | ||||||
Beginning of the period (in shares) | 1,220,661 | 1,220,661 | ||||
Granted (in shares) | 192,831 | |||||
Vested (in shares) | (546,294) | |||||
Canceled/forfeited (in shares) | (5,253) | |||||
End of the period (in shares) | 861,945 | 1,220,661 | ||||
Restricted stock activity, Weighted average grant price | ||||||
Beginning of the period (in dollars per share) | $ / shares | $ 33.92 | $ 33.92 | ||||
Granted (in dollars per share) | $ / shares | 68.83 | |||||
Vested (in dollars per share) | $ / shares | 28.17 | |||||
Canceled/forfeited (in dollars per share) | $ / shares | 52.62 | |||||
End of the period (in dollars per share) | $ / shares | $ 45.27 | $ 33.92 | ||||
PCEQs | ||||||
Restricted stock activity, Number of shares | ||||||
Granted (in shares) | 116,559 | 143,305 | 148,875 | |||
Restricted stock activity, Weighted average grant price | ||||||
Share based compensation expense | $ | $ 7,100,000 | $ 6,900,000 | $ 7,600,000 | |||
PCEQs | Minimum | ||||||
Restricted stock activity, Weighted average grant price | ||||||
Vest range of participant's assigned award opportunity (as a percent) | 0.00% | |||||
PCEQs | Maximum | ||||||
Restricted stock activity, Weighted average grant price | ||||||
Vest range of participant's assigned award opportunity (as a percent) | 200.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share | |||||||||||
Net earnings attributable to Ball Corporation | $ 55.3 | $ 44.5 | $ 160.4 | $ 20.7 | $ 76 | $ 147.4 | $ 153.1 | $ 93.5 | $ 280.9 | $ 470 | $ 406.8 |
Basic weighted average common shares | 137,300 | 138,508 | 145,943 | ||||||||
Effect of dilutive securities (in shares) | 3,684 | 3,922 | 3,280 | ||||||||
Weighted average shares applicable to diluted earnings per share | 140,984 | 142,430 | 149,223 | ||||||||
Basic (in dollars per share) | $ 0.40 | $ 0.32 | $ 1.16 | $ 0.15 | $ 0.56 | $ 1.07 | $ 1.10 | $ 0.67 | $ 2.05 | $ 3.39 | $ 2.79 |
Diluted (in dollars per share) | $ 0.39 | $ 0.32 | $ 1.13 | $ 0.15 | $ 0.54 | $ 1.04 | $ 1.07 | $ 0.65 | $ 1.99 | $ 3.30 | $ 2.73 |
Number of outstanding options excluded from computation of diluted earnings per share | 1,200 | 0 | 1,300 |
Financial Instruments and Ris81
Financial Instruments and Risk Management (Details) $ / shares in Units, € in Millions, £ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2015EUR (€)item | Dec. 31, 2015USD ($)$ / shares | Jan. 31, 2016EUR (€) | Jan. 31, 2016USD ($) | Dec. 31, 2015GBP (£)item | Dec. 31, 2015USD ($)item | Feb. 17, 2015 | Dec. 31, 2014USD ($) | |
Financial Instruments and Risk Management | ||||||||
Long-term debt | $ 5,107.8 | $ 3,048.8 | ||||||
Period within which derivative will expire | 5 years | |||||||
Aggregate fair value of derivative instruments with credit-risk-related contingent features that were in a net liability position | 69.2 | 12.4 | ||||||
Collateral amount posted for derivative instruments with credit-risk-related contingent features that were in a net liability position | 0 | $ 0 | ||||||
Rexam PLC | ||||||||
Financial Instruments and Risk Management | ||||||||
Percentage reduction in cross-currency swap affects fair value | 1.54 | |||||||
U.S. Dollar Senior Notes, due 2020 | ||||||||
Financial Instruments and Risk Management | ||||||||
Long-term debt | 1,000 | |||||||
U.S. Dollar Senior Notes, due 2020 | Currency swap | ||||||||
Financial Instruments and Risk Management | ||||||||
Period within which derivative will expire | 5 years | |||||||
Recognized Gains (Losses) of associated with its collar and option contracts | $ 7.4 | |||||||
Senior Notes, due 2020 and 2023 | ||||||||
Financial Instruments and Risk Management | ||||||||
Long-term debt | € | € 1.1 | |||||||
Escrow Deposit | £ 792 | $ 1,167 | ||||||
Senior Notes, due 2020 and 2023 | Currency swap | ||||||||
Financial Instruments and Risk Management | ||||||||
Currency derivative, average exchange rate | 1.37 | 1.37 | 1.37 | |||||
Senior Notes, due 2020 | ||||||||
Financial Instruments and Risk Management | ||||||||
Long-term debt | € | € 400 | |||||||
Senior Notes, due 2023 | ||||||||
Financial Instruments and Risk Management | ||||||||
Long-term debt | € | € 700 | |||||||
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 | item | 2 | 2 | 2 | |||||
Notional amount of derivatives | $ 509 | |||||||
Period within which derivative will expire | 3 years | |||||||
Impact on derivative contracts included in accumulated other comprehensive earnings (loss), net of tax | (12.7) | |||||||
Net loss expected to be recognized in the consolidated statement of earnings during the next 12 months | $ 9.5 | |||||||
Commodity contracts | Derivatives Designated As Hedging Instruments | Cash Flow Hedging [Member] | ||||||||
Financial Instruments and Risk Management | ||||||||
Notional amount of derivatives | 436 | |||||||
Interest rate swap agreements | ||||||||
Financial Instruments and Risk Management | ||||||||
Notional amount of derivatives | 115 | |||||||
Period within which derivative will expire | 5 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 | $ 15.9 | |||||||
Interest rate swap agreements | Rexam PLC | Derivatives Designated As Hedging Instruments | ||||||||
Financial Instruments and Risk Management | ||||||||
Notional amount of derivatives | € | € 750 | |||||||
Interest rate swap agreements | Rexam PLC | Derivatives Not Designated As Hedging Instruments | ||||||||
Financial Instruments and Risk Management | ||||||||
Notional amount of derivatives | 1,750 | € 850 | $ 923 | 200 | ||||
Period within which derivative will expire | 4 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 | 695 | |||||||
Impact on derivative contracts included in accumulated other comprehensive earnings (loss), net of tax | (1.3) | |||||||
Net loss expected to be recognized in the consolidated statement of earnings during the next 12 months | $ 0.4 | |||||||
Currency Exchange Rate Risk | Rexam PLC | ||||||||
Financial Instruments and Risk Management | ||||||||
Notional amount of derivatives | £ 1,800 | $ 2,700 | ||||||
Recognized Gains (Losses) of associated with its collar and option contracts | $ 41 | |||||||
Equity contracts | ||||||||
Financial Instruments and Risk Management | ||||||||
Change in company's stock price (in dollars per share) | $ / shares | $ 1 | |||||||
Impact of change in the company's stock price on pretax earnings | $ 1.5 | |||||||
Notional value of the swap (in shares) | item | 1,000,000 | 1,000,000 | 1,000,000 | |||||
Fair value of the swaps | $ (2.9) |
Financial Instruments and Ris82
Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Measurements | ||
Total current derivative contracts, assets | $ 20.4 | $ 9.4 |
Total noncurrent derivative contracts, assets | 3.3 | 3.1 |
Total current derivative contracts, liabilities | 50.5 | 12.3 |
Total noncurrent derivative contracts, liabilities | $ 31.3 | 7.6 |
Discount factor | 12-month LIBOR | |
Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | $ 10 | 5.1 |
Total noncurrent derivative contracts, assets | 1 | 2.7 |
Total current derivative contracts, liabilities | 16.9 | 8.5 |
Total noncurrent derivative contracts, liabilities | 7.9 | 7.3 |
Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 7.5 | 4.3 |
Total noncurrent derivative contracts, assets | 0.2 | |
Total current derivative contracts, liabilities | 33 | 2.9 |
Other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 2.9 | |
Interest rate and other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, liabilities | 0.6 | 0.9 |
Interest rate contracts | ||
Fair Value Measurements | ||
Total noncurrent derivative contracts, assets | 2.1 | 0.4 |
Total noncurrent derivative contracts, liabilities | 23.4 | 0.3 |
Derivatives Designated As Hedging Instruments | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 7.9 | 4.6 |
Total noncurrent derivative contracts, assets | 1.2 | 2.6 |
Total current derivative contracts, liabilities | 12.4 | 9 |
Total noncurrent derivative contracts, liabilities | 8 | 7.1 |
Derivatives Designated As Hedging Instruments | Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 6 | 3.8 |
Total noncurrent derivative contracts, assets | 1 | 2.2 |
Total current derivative contracts, liabilities | 11.8 | 6.9 |
Total noncurrent derivative contracts, liabilities | 7.9 | 6.8 |
Derivatives Designated As Hedging Instruments | Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 1.9 | 0.8 |
Total noncurrent derivative contracts, assets | 0.2 | |
Total current derivative contracts, liabilities | 1.6 | |
Derivatives Designated As Hedging Instruments | Interest rate and other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, liabilities | 0.6 | 0.5 |
Derivatives Designated As Hedging Instruments | Interest rate contracts | ||
Fair Value Measurements | ||
Total noncurrent derivative contracts, assets | 0.4 | |
Total noncurrent derivative contracts, liabilities | 0.1 | 0.3 |
Derivatives Not Designated As Hedging Instruments | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 12.5 | 4.8 |
Total noncurrent derivative contracts, assets | 2.1 | 0.5 |
Total current derivative contracts, liabilities | 38.1 | 3.3 |
Total noncurrent derivative contracts, liabilities | 23.3 | 0.5 |
Derivatives Not Designated As Hedging Instruments | Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 4 | 1.3 |
Total noncurrent derivative contracts, assets | 0.5 | |
Total current derivative contracts, liabilities | 5.1 | 1.6 |
Total noncurrent derivative contracts, liabilities | 0.5 | |
Derivatives Not Designated As Hedging Instruments | Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 5.6 | 3.5 |
Total current derivative contracts, liabilities | 33 | 1.3 |
Derivatives Not Designated As Hedging Instruments | Other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 2.9 | |
Derivatives Not Designated As Hedging Instruments | Interest rate and other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, liabilities | $ 0.4 | |
Derivatives Not Designated As Hedging Instruments | Interest rate contracts | ||
Fair Value Measurements | ||
Total noncurrent derivative contracts, assets | 2.1 | |
Total noncurrent derivative contracts, liabilities | $ 23.3 |
Financial Instruments and Ris83
Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impact on Earnings from Derivative Instruments | |||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | $ (16.7) | $ (33.4) | $ (28.5) |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (69.1) | (23.2) | 5 |
Amounts reclassified into earnings: | |||
Commodity contracts | 18.1 | 33.6 | 26.9 |
Interest rate contracts | 0.1 | 1 | |
Currency exchange contracts | (1.5) | (0.2) | 0.6 |
Change in fair value of cash flow hedges: | |||
Commodity contracts | (29.5) | 4.1 | (61.6) |
Interest rate contracts | (0.2) | (0.3) | 0.3 |
Currency exchange contracts | 3.8 | 0.7 | 2.2 |
Foreign Currency and tax impacts | 1.5 | (2.9) | 0.7 |
Changes in accumulated other comprehensive earnings (loss) for effective derivatives | (7.7) | 35 | (29.9) |
Commodity contracts | Net sales | |||
Impact on Earnings from Derivative Instruments | |||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | 5.4 | (6.3) | 8.4 |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 1.2 | 3.1 | 0.2 |
Commodity contracts | Cost of sales | |||
Impact on Earnings from Derivative Instruments | |||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | (23.5) | (27.3) | (35.3) |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (4.8) | 1.3 | (3.1) |
Interest rate contracts | Interest expense. | |||
Impact on Earnings from Derivative Instruments | |||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | (0.1) | (1) | |
Interest rate contracts | Debt refinancing and other costs | |||
Impact on Earnings from Derivative Instruments | |||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (15.9) | ||
Foreign currency contracts | Cost of sales | |||
Impact on Earnings from Derivative Instruments | |||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | (0.2) | 0.2 | (0.6) |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 2.2 | (1) | (0.1) |
Foreign currency contracts | Selling, general and administrative | |||
Impact on Earnings from Derivative Instruments | |||
Cash Flow Hedge - Reclassified Amount from Other Comprehensive Earnings (Loss) | 1.7 | ||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (7.3) | (24) | 7.4 |
Foreign currency contracts | Business consolidation and other activities | |||
Impact on Earnings from Derivative Instruments | |||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (41) | ||
Currency swap | Business consolidation and other activities | |||
Impact on Earnings from Derivative Instruments | |||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (7.4) | ||
Inflation option contracts | Selling, general and administrative | |||
Impact on Earnings from Derivative Instruments | |||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | $ 3.9 | $ (2.6) | $ 0.6 |
Quarterly Results of Operatio84
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Results of Operations (Unaudited) | |||||||||||
Net sales | $ 1,804.6 | $ 2,097 | $ 2,172.3 | $ 1,923.1 | $ 2,032.4 | $ 2,238.9 | $ 2,291.9 | $ 2,006.8 | $ 7,997 | $ 8,570 | $ 8,468.1 |
Gross profit | 307.7 | 346 | 336.5 | 304.8 | 336.9 | 372.4 | 387.9 | 336.5 | 1,295 | 1,433.7 | |
Earnings before taxes | 62.6 | 17.6 | 237.8 | 27.5 | 98.3 | 187.9 | 215.3 | 144.1 | 345.5 | 645.6 | 583.6 |
Net earnings attributable to Ball Corporation | $ 55.3 | $ 44.5 | $ 160.4 | $ 20.7 | $ 76 | $ 147.4 | $ 153.1 | $ 93.5 | $ 280.9 | $ 470 | $ 406.8 |
Basic earnings per share (in dollars per share) | $ 0.40 | $ 0.32 | $ 1.16 | $ 0.15 | $ 0.56 | $ 1.07 | $ 1.10 | $ 0.67 | $ 2.05 | $ 3.39 | $ 2.79 |
Diluted earnings per share (in dollars per share) | $ 0.39 | $ 0.32 | $ 1.13 | $ 0.15 | $ 0.54 | $ 1.04 | $ 1.07 | $ 0.65 | $ 1.99 | $ 3.30 | $ 2.73 |
Depreciation and amortization related to cost of sales | $ 241.7 | $ 232.8 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2015USD ($) | Nov. 30, 2012item | Sep. 30, 2015a | Sep. 30, 2014USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 1992entity | |
Contingencies | ||||||
Brazil Governmental assessments | $ 7.5 | |||||
Environmental litigation with respect to Lowry Landfill site | ||||||
Contingencies | ||||||
Approximate number of other companies named in a lawsuit with respect to Lowry Landfill | entity | 38 | |||||
Waste Management litigation | ||||||
Contingencies | ||||||
Response cost related to site, minimum before the company may be asked to make payments | $ 319 | |||||
Projects costs to date | $ 140 | |||||
Period before projected completion of project when response cost is expected to exceed minimum amount | 3 years | |||||
Estimated additional cleanup costs | $ 10 | |||||
Estimated additional site costs for the potentially responsible party (PRP) group | $ 1 | |||||
Environmental litigation with respect to Lower Duwamish site | ||||||
Contingencies | ||||||
Number of potentially responsible parties (PRPs) | item | 50 | |||||
Number of additional potentially responsible parties (PRPs) | item | 20 | |||||
Expected future remediation costs | $ 342 | |||||
Expected future remediation of area of river bottom | a | 200 | |||||
Site cleanup costs | $ 100 | |||||
Number of companies whose data is under review | item | 30 | |||||
Number of potentially responsible parties (PRP) groups whose data is under review | item | 2 | |||||
Period over which data is reviewed | 2 years |
Subsidiary Guarantees of Debt86
Subsidiary Guarantees of Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Subsidiary Guarantees of Debt | |||||||||||
Ownership interest in guarantor subsidiaries (as a percent) | 100.00% | ||||||||||
Subsidiary Guarantees of Debt | |||||||||||
Net sales | $ 1,804.6 | $ 2,097 | $ 2,172.3 | $ 1,923.1 | $ 2,032.4 | $ 2,238.9 | $ 2,291.9 | $ 2,006.8 | $ 7,997 | $ 8,570 | $ 8,468.1 |
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | (6,460.3) | (6,903.5) | (6,875.4) | ||||||||
Depreciation and amortization | (285.5) | (280.9) | (299.9) | ||||||||
Selling, general and administrative | (451.3) | (466.5) | (418.6) | ||||||||
Business consolidation and other activities | (194.7) | (80.5) | (78.8) | ||||||||
Total costs and expenses | (7,391.8) | (7,731.4) | (7,672.7) | ||||||||
Earnings before interest and taxes | 605.2 | 838.6 | 795.4 | ||||||||
Interest expense | (143.2) | (159.9) | (183.8) | ||||||||
Debt refinancing and other costs | (116.5) | (33.1) | (28) | ||||||||
Total interest expense | (259.7) | (193) | (211.8) | ||||||||
Earnings (loss) before taxes | 62.6 | 17.6 | 237.8 | 27.5 | 98.3 | 187.9 | 215.3 | 144.1 | 345.5 | 645.6 | 583.6 |
Tax (provision) benefit | (47) | (149.9) | (149.6) | ||||||||
Net earnings from continuing operations | 302.9 | 498 | 434.6 | ||||||||
Equity in results of affiliates, net of tax | 4.4 | 2.3 | 0.6 | ||||||||
Discontinued operations, net of tax | 0.4 | ||||||||||
Net earnings | 302.9 | 498 | 435 | ||||||||
Less net earnings attributable to noncontrolling interests | (22) | (28) | (28.2) | ||||||||
Net earnings attributable to Ball Corporation | $ 55.3 | $ 44.5 | $ 160.4 | $ 20.7 | $ 76 | $ 147.4 | $ 153.1 | $ 93.5 | 280.9 | 470 | 406.8 |
Comprehensive earnings attributable to Ball Corporation | 163.1 | 197.9 | 519 | ||||||||
Eliminating Adjustments | |||||||||||
Subsidiary Guarantees of Debt | |||||||||||
Net sales | (49.9) | (11.9) | (21.6) | ||||||||
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | 49.9 | 11.9 | 21.6 | ||||||||
Equity in results of subsidiaries | (668.3) | (735.6) | (675.3) | ||||||||
Total costs and expenses | (618.4) | (723.7) | (653.7) | ||||||||
Earnings before interest and taxes | (668.3) | (735.6) | (675.3) | ||||||||
Earnings (loss) before taxes | (668.3) | (735.6) | (675.3) | ||||||||
Net earnings from continuing operations | (675.3) | ||||||||||
Net earnings | (668.3) | (735.6) | (675.3) | ||||||||
Net earnings attributable to Ball Corporation | (668.3) | (735.6) | (675.3) | ||||||||
Comprehensive earnings attributable to Ball Corporation | (428.2) | (301.2) | (794.5) | ||||||||
Ball Corporation | |||||||||||
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | (0.3) | 0.1 | |||||||||
Depreciation and amortization | (5.5) | (6.4) | (7.5) | ||||||||
Selling, general and administrative | (80.2) | (77.4) | (81.4) | ||||||||
Business consolidation and other activities | (159.4) | (11.2) | (0.7) | ||||||||
Equity in results of subsidiaries | 452.8 | 470.2 | 426.9 | ||||||||
Intercompany | 206.8 | 254.8 | 234.1 | ||||||||
Total costs and expenses | 414.2 | 630 | 571.5 | ||||||||
Earnings before interest and taxes | 414.2 | 630 | 571.5 | ||||||||
Interest expense | (139.2) | (150) | (172) | ||||||||
Debt refinancing and other costs | (114.6) | (33.1) | (27.9) | ||||||||
Total interest expense | (253.8) | (183.1) | (199.9) | ||||||||
Earnings (loss) before taxes | 160.4 | 446.9 | 371.6 | ||||||||
Tax (provision) benefit | 120.5 | 23.1 | 35.2 | ||||||||
Net earnings from continuing operations | 406.8 | ||||||||||
Net earnings | 280.9 | 470 | 406.8 | ||||||||
Net earnings attributable to Ball Corporation | 280.9 | 470 | 406.8 | ||||||||
Comprehensive earnings attributable to Ball Corporation | 163.1 | 197.9 | 519 | ||||||||
Guarantor Subsidiaries | |||||||||||
Subsidiary Guarantees of Debt | |||||||||||
Net sales | 4,788 | 5,102.6 | 5,125.5 | ||||||||
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | (3,958.5) | (4,207.3) | (4,246.7) | ||||||||
Depreciation and amortization | (132.5) | (127.5) | (126.7) | ||||||||
Selling, general and administrative | (170.2) | (185.5) | (179.9) | ||||||||
Business consolidation and other activities | (18.6) | (66.6) | (88.5) | ||||||||
Equity in results of subsidiaries | 215.5 | 265.4 | 248.4 | ||||||||
Intercompany | (174.9) | (215.8) | (188.3) | ||||||||
Total costs and expenses | (4,239.2) | (4,537.3) | (4,581.7) | ||||||||
Earnings before interest and taxes | 548.8 | 565.3 | 543.8 | ||||||||
Interest expense | 5.5 | 3.4 | 2.5 | ||||||||
Total interest expense | 5.5 | 3.4 | 2.5 | ||||||||
Earnings (loss) before taxes | 554.3 | 568.7 | 546.3 | ||||||||
Tax (provision) benefit | (110.7) | (99.4) | (113.8) | ||||||||
Net earnings from continuing operations | 432.9 | ||||||||||
Equity in results of affiliates, net of tax | 2.3 | 1.2 | 0.4 | ||||||||
Discontinued operations, net of tax | 0.4 | ||||||||||
Net earnings | 445.9 | 470.5 | 433.3 | ||||||||
Net earnings attributable to Ball Corporation | 445.9 | 470.5 | 433.3 | ||||||||
Comprehensive earnings attributable to Ball Corporation | 327.8 | 209.6 | 533.2 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
Subsidiary Guarantees of Debt | |||||||||||
Net sales | 3,258.9 | 3,479.3 | 3,364.2 | ||||||||
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | (2,551.4) | (2,708.1) | (2,650.4) | ||||||||
Depreciation and amortization | (147.5) | (147) | (165.7) | ||||||||
Selling, general and administrative | (200.9) | (203.6) | (157.3) | ||||||||
Business consolidation and other activities | (16.7) | (2.7) | 10.4 | ||||||||
Intercompany | (31.9) | (39) | (45.8) | ||||||||
Total costs and expenses | (2,948.4) | (3,100.4) | (3,008.8) | ||||||||
Earnings before interest and taxes | 310.5 | 378.9 | 355.4 | ||||||||
Interest expense | (9.5) | (13.3) | (14.3) | ||||||||
Debt refinancing and other costs | (1.9) | (0.1) | |||||||||
Total interest expense | (11.4) | (13.3) | (14.4) | ||||||||
Earnings (loss) before taxes | 299.1 | 365.6 | 341 | ||||||||
Tax (provision) benefit | (56.8) | (73.6) | (71) | ||||||||
Net earnings from continuing operations | 270.2 | ||||||||||
Equity in results of affiliates, net of tax | 2.1 | 1.1 | 0.2 | ||||||||
Net earnings | 244.4 | 293.1 | 270.2 | ||||||||
Less net earnings attributable to noncontrolling interests | (22) | (28) | (28.2) | ||||||||
Net earnings attributable to Ball Corporation | 222.4 | 265.1 | 242 | ||||||||
Comprehensive earnings attributable to Ball Corporation | $ 100.4 | $ 91.6 | $ 261.3 |
Subsidiary Guarantees of Debt87
Subsidiary Guarantees of Debt (Details 2) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets | ||||
Cash and cash equivalents | $ 224 | $ 191.4 | $ 416 | $ 174.1 |
Receivables, net | 885.4 | 957.1 | ||
Inventories, net | 898.4 | 1,016.7 | ||
Deferred taxes and other current assets | 176.2 | 148.3 | ||
Total current assets | 2,184 | 2,313.5 | ||
Noncurrent assets | ||||
Property, plant and equipment, net | 2,685.9 | 2,430.7 | ||
Goodwill | 2,176.5 | 2,254.5 | 2,399.7 | |
Restricted cash | 2,154.4 | |||
Intangibles and other assets, net | 576.2 | 572.3 | ||
Total assets | 9,777 | 7,571 | ||
Current liabilities | ||||
Short-term debt and current portion of long-term debt | 77.3 | 175.1 | ||
Accounts payable | 1,500.8 | 1,340 | ||
Accrued employee costs | 229.4 | 269.9 | ||
Other current liabilities | 334.1 | 221.8 | ||
Total current liabilities | 2,141.6 | 2,006.8 | ||
Noncurrent liabilities | ||||
Long-term debt | 5,054.2 | 2,993.8 | ||
Employee benefit obligations | 1,147.2 | 1,178.3 | ||
Deferred taxes and other liabilities | 172.7 | 152.5 | ||
Total liabilities | 8,515.7 | 6,331.4 | ||
Common stock | 961.7 | 1,131.3 | ||
Retained earnings | 4,557.5 | 4,346.9 | ||
Accumulated other comprehensive earnings (loss) | (639.9) | (522.1) | ||
Treasury stock, at cost | (3,628) | (3,923) | ||
Total Ball Corporation shareholders' equity | 1,251.3 | 1,033.1 | ||
Noncontrolling interests | 10 | 206.5 | ||
Total shareholders' equity | 1,261.3 | 1,239.6 | 1,416 | 1,314.2 |
Total liabilities and shareholders' equity | 9,777 | 7,571 | ||
Eliminating Adjustments | ||||
Current assets | ||||
Intercompany receivables | (660.2) | (198.2) | ||
Total current assets | (660.2) | (198.2) | ||
Noncurrent assets | ||||
Investment in subsidiaries | (5,902.1) | (5,443.5) | ||
Total assets | (6,562.3) | (5,641.7) | ||
Current liabilities | ||||
Intercompany payables | (659.9) | (198.2) | ||
Total current liabilities | (659.9) | (198.2) | ||
Noncurrent liabilities | ||||
Deferred taxes and other liabilities | (0.3) | |||
Total liabilities | (660.2) | (198.2) | ||
Common stock | (1,417) | (2,827.5) | ||
Preferred stock | (4.8) | (4.8) | ||
Retained earnings | (5,338.5) | (3,229.3) | ||
Accumulated other comprehensive earnings (loss) | 858.2 | 618.1 | ||
Total Ball Corporation shareholders' equity | (5,902.1) | (5,443.5) | ||
Total shareholders' equity | (5,902.1) | (5,443.5) | ||
Total liabilities and shareholders' equity | (6,562.3) | (5,641.7) | ||
Ball Corporation | ||||
Current assets | ||||
Cash and cash equivalents | 5.5 | 1.5 | 218.6 | 0.2 |
Receivables, net | 39.6 | 43.7 | ||
Intercompany receivables | 136.5 | 94 | ||
Inventories, net | (0.3) | |||
Deferred taxes and other current assets | 48.8 | 3.1 | ||
Total current assets | 230.1 | 142.3 | ||
Noncurrent assets | ||||
Property, plant and equipment, net | 13.8 | 15.1 | ||
Investment in subsidiaries | 3,688.4 | 3,152.7 | ||
Restricted cash | 2,154.4 | |||
Intangibles and other assets, net | 251.4 | 232.4 | ||
Total assets | 6,338.1 | 3,542.5 | ||
Current liabilities | ||||
Short-term debt and current portion of long-term debt | 0.7 | 1.9 | ||
Accounts payable | 19.4 | 7.1 | ||
Intercompany payables | 105.1 | 99.7 | ||
Accrued employee costs | 16 | 22.3 | ||
Other current liabilities | 145.4 | 51.6 | ||
Total current liabilities | 286.6 | 182.6 | ||
Noncurrent liabilities | ||||
Long-term debt | 4,938.5 | 2,750 | ||
Employee benefit obligations | 341.6 | 329.4 | ||
Deferred taxes and other liabilities | (479.9) | (752.6) | ||
Total liabilities | 5,086.8 | 2,509.4 | ||
Common stock | 961.7 | 1,131.3 | ||
Retained earnings | 4,557.5 | 4,346.9 | ||
Accumulated other comprehensive earnings (loss) | (639.9) | (522.1) | ||
Treasury stock, at cost | (3,628) | (3,923) | ||
Total Ball Corporation shareholders' equity | 1,251.3 | 1,033.1 | ||
Total shareholders' equity | 1,251.3 | 1,033.1 | ||
Total liabilities and shareholders' equity | 6,338.1 | 3,542.5 | ||
Guarantor Subsidiaries | ||||
Current assets | ||||
Cash and cash equivalents | 0.4 | 0.3 | 0.3 | |
Receivables, net | 224.3 | 241.3 | ||
Intercompany receivables | 517.1 | 99.9 | ||
Inventories, net | 516.7 | 575 | ||
Deferred taxes and other current assets | 83.5 | 75.1 | ||
Total current assets | 1,341.6 | 991.7 | ||
Noncurrent assets | ||||
Property, plant and equipment, net | 1,026.4 | 968 | ||
Investment in subsidiaries | 2,135.1 | 2,212.2 | ||
Goodwill | 966.5 | 931 | ||
Intangibles and other assets, net | 101.2 | 93.5 | ||
Total assets | 5,570.8 | 5,196.4 | ||
Current liabilities | ||||
Short-term debt and current portion of long-term debt | 0.2 | 7.6 | ||
Accounts payable | 791.8 | 732.5 | ||
Intercompany payables | 0.5 | 1.5 | ||
Accrued employee costs | 133.4 | 155.6 | ||
Other current liabilities | 60 | 38 | ||
Total current liabilities | 985.9 | 935.2 | ||
Noncurrent liabilities | ||||
Long-term debt | 0.2 | |||
Employee benefit obligations | 466.2 | 432.7 | ||
Deferred taxes and other liabilities | 375 | 601.8 | ||
Total liabilities | 1,827.1 | 1,969.9 | ||
Common stock | 1,041.8 | 2,293.5 | ||
Retained earnings | 3,276.4 | 1,389.4 | ||
Accumulated other comprehensive earnings (loss) | (574.5) | (456.4) | ||
Total Ball Corporation shareholders' equity | 3,743.7 | 3,226.5 | ||
Total shareholders' equity | 3,743.7 | 3,226.5 | ||
Total liabilities and shareholders' equity | 5,570.8 | 5,196.4 | ||
Non-Guarantor Subsidiaries | ||||
Current assets | ||||
Cash and cash equivalents | 218.5 | 189.5 | $ 197.1 | $ 173.6 |
Receivables, net | 621.5 | 672.1 | ||
Intercompany receivables | 6.6 | 4.3 | ||
Inventories, net | 382 | 441.7 | ||
Deferred taxes and other current assets | 43.9 | 70.1 | ||
Total current assets | 1,272.5 | 1,377.7 | ||
Noncurrent assets | ||||
Property, plant and equipment, net | 1,645.7 | 1,447.6 | ||
Investment in subsidiaries | 78.6 | 78.6 | ||
Goodwill | 1,210 | 1,323.5 | ||
Intangibles and other assets, net | 223.6 | 246.4 | ||
Total assets | 4,430.4 | 4,473.8 | ||
Current liabilities | ||||
Short-term debt and current portion of long-term debt | 76.4 | 165.6 | ||
Accounts payable | 689.6 | 600.4 | ||
Intercompany payables | 554.3 | 97 | ||
Accrued employee costs | 80 | 92 | ||
Other current liabilities | 128.7 | 132.2 | ||
Total current liabilities | 1,529 | 1,087.2 | ||
Noncurrent liabilities | ||||
Long-term debt | 115.7 | 243.6 | ||
Employee benefit obligations | 339.4 | 416.2 | ||
Deferred taxes and other liabilities | 277.9 | 303.3 | ||
Total liabilities | 2,262 | 2,050.3 | ||
Common stock | 375.2 | 534 | ||
Preferred stock | 4.8 | 4.8 | ||
Retained earnings | 2,062.1 | 1,839.9 | ||
Accumulated other comprehensive earnings (loss) | (283.7) | (161.7) | ||
Total Ball Corporation shareholders' equity | 2,158.4 | 2,217 | ||
Noncontrolling interests | 10 | 206.5 | ||
Total shareholders' equity | 2,168.4 | 2,423.5 | ||
Total liabilities and shareholders' equity | $ 4,430.4 | $ 4,473.8 |
Subsidiary Guarantees of Debt88
Subsidiary Guarantees of Debt (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Subsidiary Guarantees of Debt | |||
Cash provided by (used in) continuing operating activities | $ 1,006.7 | $ 1,012.5 | $ 841.3 |
Cash provided by (used in) discontinued operating activities | (2.3) | ||
Total cash provided by (used in) operating activities | 1,006.7 | 1,012.5 | 839 |
Cash flows from investing activities | |||
Capital expenditures | (527.9) | (390.8) | (378.3) |
Business acquisitions, net of cash acquired | (29.1) | (14.2) | |
(Increase) decrease in noncurrent restricted cash | (2,182.7) | ||
Other, net | 19 | (0.6) | 13.4 |
Cash provided by (used in) investing activities | (2,720.7) | (391.4) | (379.1) |
Cash flows from financing activities | |||
Long-term borrowings | 4,524.2 | 411.9 | 1,643.1 |
Repayments of long-term borrowings | (2,429.8) | (897.8) | (1,294.9) |
Net change in short-term borrowings | (93.2) | 68.2 | (57.6) |
Proceeds from issuances of common stock | 36 | 37.2 | 32.9 |
Acquisitions of treasury stock | (135.5) | (397.3) | (431.7) |
Common dividends | (71.8) | (72.7) | (75.2) |
Other, net | (92.8) | 5.2 | (20.6) |
Cash provided by (used in) financing activities | 1,737.1 | (845.3) | (204) |
Effect of exchange rate changes on cash | 9.5 | (0.4) | (14) |
Change in cash and cash equivalents | 32.6 | (224.6) | 241.9 |
Cash and cash equivalents - beginning of year | 191.4 | 416 | 174.1 |
Cash and cash equivalents - end of year | 224 | 191.4 | 416 |
Ball Corporation | |||
Subsidiary Guarantees of Debt | |||
Cash provided by (used in) continuing operating activities | (13.2) | 68.3 | (50.5) |
Cash provided by (used in) discontinued operating activities | 0.2 | ||
Total cash provided by (used in) operating activities | (50.3) | ||
Cash flows from investing activities | |||
Capital expenditures | (7.8) | (10.4) | (6.7) |
(Increase) decrease in noncurrent restricted cash | (2,182.7) | ||
Other, net | 7.2 | (7.9) | (19.6) |
Cash provided by (used in) investing activities | (2,183.3) | (18.3) | (26.3) |
Cash flows from financing activities | |||
Long-term borrowings | 4,509.1 | 375 | 1,373 |
Repayments of long-term borrowings | (2,300.7) | (690.4) | (882.7) |
Net change in short-term borrowings | (1.9) | 1.9 | (25) |
Proceeds from issuances of common stock | 36 | 37.2 | 32.9 |
Acquisitions of treasury stock | (135.5) | (397.3) | (431.7) |
Common dividends | (71.8) | (72.7) | (75.2) |
Intercompany | 248.7 | 470 | 316.5 |
Other, net | (73.3) | 17.5 | (6) |
Cash provided by (used in) financing activities | 2,210.6 | (258.8) | 301.8 |
Effect of exchange rate changes on cash | (10.1) | (8.3) | (6.8) |
Change in cash and cash equivalents | 4 | (217.1) | 218.4 |
Cash and cash equivalents - beginning of year | 1.5 | 218.6 | 0.2 |
Cash and cash equivalents - end of year | 5.5 | 1.5 | 218.6 |
Guarantor Subsidiaries | |||
Subsidiary Guarantees of Debt | |||
Cash provided by (used in) continuing operating activities | 568.3 | 367.8 | 464.7 |
Cash provided by (used in) discontinued operating activities | (2.5) | ||
Total cash provided by (used in) operating activities | 462.2 | ||
Cash flows from investing activities | |||
Capital expenditures | (193.7) | (181.8) | (169.2) |
Business acquisitions, net of cash acquired | (29.1) | (12.5) | |
Other, net | 7.1 | (10.3) | (2.5) |
Cash provided by (used in) investing activities | (215.7) | (192.1) | (184.2) |
Cash flows from financing activities | |||
Long-term borrowings | 1 | ||
Repayments of long-term borrowings | (0.1) | (0.5) | |
Net change in short-term borrowings | (7.4) | (22.2) | 29.6 |
Intercompany | (340.8) | (152.9) | (308.6) |
Other, net | (1.7) | ||
Cash provided by (used in) financing activities | (350) | (175.6) | (278) |
Effect of exchange rate changes on cash | (3) | ||
Change in cash and cash equivalents | (0.4) | 0.1 | |
Cash and cash equivalents - beginning of year | 0.4 | 0.3 | 0.3 |
Cash and cash equivalents - end of year | 0.4 | 0.3 | |
Non-Guarantor Subsidiaries | |||
Subsidiary Guarantees of Debt | |||
Cash provided by (used in) continuing operating activities | 451.6 | 576.4 | 427.1 |
Total cash provided by (used in) operating activities | 427.1 | ||
Cash flows from investing activities | |||
Capital expenditures | (326.4) | (198.6) | (202.4) |
Business acquisitions, net of cash acquired | (1.7) | ||
Other, net | 4.7 | 17.6 | 35.5 |
Cash provided by (used in) investing activities | (321.7) | (181) | (168.6) |
Cash flows from financing activities | |||
Long-term borrowings | 15.1 | 36.9 | 269.1 |
Repayments of long-term borrowings | (129) | (206.9) | (412.2) |
Net change in short-term borrowings | (83.9) | 88.5 | (62.2) |
Intercompany | 92.1 | (317.1) | (7.9) |
Other, net | (17.8) | (12.3) | (14.6) |
Cash provided by (used in) financing activities | (123.5) | (410.9) | (227.8) |
Effect of exchange rate changes on cash | 22.6 | 7.9 | (7.2) |
Change in cash and cash equivalents | 29 | (7.6) | 23.5 |
Cash and cash equivalents - beginning of year | 189.5 | 197.1 | 173.6 |
Cash and cash equivalents - end of year | $ 218.5 | $ 189.5 | $ 197.1 |