Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | BALL Corp | |
Entity File Number | 001-07349 | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-0160610 | |
Entity Address, Address Line One | 10 Longs Peak Drive, P.O. Box 5000 | |
Entity Address, City or Town | Broomfield | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80021-2510 | |
City Area Code | 303 | |
Local Phone Number | 469-3131 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 327,129,526 | |
Title of 12(b) Security | Common Stock, without par value | |
Trading Symbol | BLL | |
Security Exchange Name | NYSE | |
Entity Central Index Key | 0000009389 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidated Statements of Earnings | ||||
Net sales | $ 2,953 | $ 2,946 | $ 8,755 | $ 8,832 |
Costs and expenses | ||||
Cost of sales (excluding depreciation and amortization) | (2,363) | (2,362) | (7,044) | (7,083) |
Depreciation and amortization | (169) | (171) | (510) | (529) |
Selling, general and administrative | (90) | (113) | (328) | (352) |
Business consolidation and other activities | (133) | (32) | (147) | (131) |
Total costs and expenses | (2,755) | (2,678) | (8,029) | (8,095) |
Earnings before interest and taxes | 198 | 268 | 726 | 737 |
Interest expense | (79) | (76) | (237) | (226) |
Debt refinancing and other costs | (4) | (1) | ||
Total interest expense | (79) | (76) | (241) | (227) |
Earnings before taxes | 119 | 192 | 485 | 510 |
Tax (provision) benefit | (32) | (140) | (73) | (220) |
Equity in results of affiliates, net of tax | 5 | 7 | (6) | 14 |
Net earnings | 92 | 59 | 406 | 304 |
Net (earnings) loss attributable to noncontrolling interests | (1) | |||
Net earnings attributable to Ball Corporation | $ 92 | $ 59 | $ 406 | $ 303 |
Earnings per share: | ||||
Per basic share (in dollars per share) | $ 0.28 | $ 0.17 | $ 1.22 | $ 0.87 |
Per diluted share (in dollars per share) | $ 0.27 | $ 0.17 | $ 1.19 | $ 0.86 |
Weighted average shares outstanding (000s): | ||||
Basic (in shares) | 331,148 | 342,982 | 332,726 | 347,113 |
Diluted (in shares) | 340,632 | 349,709 | 341,702 | 353,755 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidated Statements of Comprehensive Earnings (Loss) | ||||
Net earnings | $ 92 | $ 59 | $ 406 | $ 304 |
Other comprehensive earnings (loss): | ||||
Foreign currency translation adjustment | 50 | (47) | 136 | (157) |
Pension and other postretirement benefits | 20 | 49 | 27 | 68 |
Derivatives designated as hedges | 16 | (28) | 47 | (48) |
Total other comprehensive earnings (loss) | 86 | (26) | 210 | (137) |
Income tax (provision) benefit | (5) | (7) | (12) | (7) |
Total other comprehensive earnings (loss), net of tax | 81 | (33) | 198 | (144) |
Total comprehensive earnings (loss) | 173 | 26 | 604 | 160 |
Comprehensive (earnings) loss attributable to noncontrolling interests | (1) | |||
Comprehensive earnings (loss) attributable to Ball Corporation | $ 173 | $ 26 | $ 604 | $ 159 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | |||||||
Cash and cash equivalents | $ 483 | $ 721 | $ 598 | $ 448 | |||
Receivables, net | 1,957 | 1,802 | |||||
Inventories, net | 1,180 | 1,271 | |||||
Other current assets | 209 | $ 139 | 146 | ||||
Total current assets | 3,829 | 3,940 | |||||
Noncurrent assets | |||||||
Property, plant and equipment, net | 4,320 | 4,542 | |||||
Goodwill | 4,371 | 4,475 | |||||
Intangible assets, net | 2,027 | 2,188 | |||||
Other assets | 1,690 | 1,409 | |||||
Total assets | 16,237 | 16,554 | |||||
Current liabilities | |||||||
Short-term debt and current portion of long-term debt | 361 | 219 | |||||
Accounts payable | 2,658 | 3,095 | |||||
Accrued employee costs | 256 | 289 | |||||
Other current liabilities | 498 | 489 | 492 | ||||
Total current liabilities | 3,773 | 4,095 | |||||
Noncurrent liabilities | |||||||
Long-term debt | 6,623 | 6,510 | |||||
Employee benefit obligations | 1,383 | 1,455 | |||||
Deferred taxes | 602 | 645 | |||||
Other liabilities | 391 | $ 273 | 287 | ||||
Total liabilities | 12,772 | 12,992 | |||||
Equity | |||||||
Common stock (676,051,079 shares issued - 2019; 673,236,720 shares issued - 2018) | 1,177 | 1,157 | |||||
Retained earnings | 5,694 | 5,341 | |||||
Accumulated other comprehensive earnings (loss) | (716) | (835) | |||||
Treasury stock, at cost (346,854,718 shares - 2019; 337,978,571 shares - 2018) | (2,790) | (2,205) | |||||
Total Ball Corporation shareholders' equity | 3,365 | 3,458 | |||||
Noncontrolling interests | 100 | 104 | |||||
Total equity | 3,465 | $ 3,564 | 3,562 | $ 3,745 | $ 3,995 | $ 4,084 | |
Total liabilities and equity | $ 16,237 | $ 16,554 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Sep. 30, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets | ||
Common stock, shares issued | 676,051,079 | 673,236,720 |
Treasury stock, at cost | 346,854,718 | 337,978,571 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows from Operating Activities | ||
Net earnings | $ 406 | $ 304 |
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 510 | 529 |
Business consolidation and other activities | 147 | 131 |
Deferred tax provision (benefit) | (16) | 103 |
Other, net | 32 | 72 |
Changes in working capital components, net of dispositions | (423) | (112) |
Cash provided by (used in) operating activities | 656 | 1,027 |
Cash Flows from Investing Activities | ||
Capital expenditures | (425) | (616) |
Business dispositions, net of cash sold | (50) | 551 |
Other, net | 26 | 50 |
Cash provided by (used in) investing activities | (449) | (15) |
Cash Flows from Financing Activities | ||
Long-term borrowings | 1,098 | 1,475 |
Repayments of long-term borrowings | (906) | (1,531) |
Net change in short-term borrowings | 131 | (189) |
Proceeds from issuances of common stock, net of shares used for taxes | 16 | 25 |
Acquisitions of treasury stock | (614) | (464) |
Common stock dividends | (133) | (104) |
Other, net | (10) | (13) |
Cash provided by (used in) financing activities | (418) | (801) |
Effect of exchange rate changes on cash | (20) | (59) |
Change in cash, cash equivalents and restricted cash | (231) | 152 |
Cash, cash equivalents and restricted cash - beginning of period | 728 | 459 |
Cash, cash equivalents and restricted cash - end of period | $ 497 | $ 611 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Basis of Presentation | |
Basis of Presentation | 1 . Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Ball Corporation and its controlled affiliates, including its consolidated variable interest entities (collectively Ball, the company, we or our), and have been prepared by the company. Certain information and footnote disclosures, including critical and significant accounting policies normally included in financial statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted for this quarterly presentation. Results of operations for the periods shown are not necessarily indicative of results for the year, particularly in view of the seasonality in the packaging segments and the variability of contract sales in the company’s aerospace segment. These unaudited condensed consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and the notes thereto included in the company’s 2018 Annual Report on Form 10-K filed on February 22, 2019, pursuant to the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2018 (annual report). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires Ball’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and reported amounts of sales and expenses during the reporting periods. These estimates are based on historical experience and various assumptions believed to be reasonable under the circumstances. Ball’s management evaluates these estimates on an ongoing basis and adjusts or revises the estimates as circumstances change. As future events and their impacts cannot be determined with precision, actual results may differ from these estimates. In the opinion of management, the financial statements reflect all adjustments necessary to fairly state the results of the periods presented. Certain prior year amounts have been reclassified in order to conform to the current year presentation. |
Accounting Pronouncements
Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Pronouncements | |
Accounting Pronouncements | 2. Accounting Pronouncements Recently Adopted Accounting Standards New Lease Accounting Guidance In February 2016, lease accounting guidance was issued which, for operating leases, requires a lessee to recognize a right-of-use (ROU) asset and a lease liability. The guidance also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight line basis. On January 1, 2019, Ball adopted the new guidance and all related amendments (the new lease standard), applying the modified retrospective method to all contracts that were not completed as of January 1, 2019. As such, comparative information has not been restated and continues to be reported under the accounting standards in effect for those prior periods. As part of adopting the new lease standard, Ball has made the following elections: ● To carry forward the historical lease determination and classification conclusions as established under the old standard, and not reassess initial direct costs for existing leases; ● To carry forward its historical accounting treatment for land easements on existing agreements; ● Not to apply the balance sheet recognition requirements of the new lease standard to leases with a term of one year or less (short-term leases); and ● For all classes of underlying assets, to account for non-lease components of a contract as part of the single lease component to which they are related. The adoption of the new lease standard resulted in the following impacts on our unaudited consolidated balance sheets: ($ in millions) Balance at December 31, 2018 Adjustments Due to Adoption Balance at January 1, 2019 Assets: Other current assets $ 140 $ (1) $ 139 Operating lease right-of-use assets (a) — 244 244 Other assets 1,409 (25) 1,384 Liabilities: Other current liabilities $ 492 $ (3) $ 489 Current operating lease liabilities (b) — 53 53 Other liabilities 287 (14) 273 Noncurrent operating lease liabilities (b) — 182 182 (a) Operating lease right-of-use assets are recognized within other assets in Ball’s unaudited condensed consolidated balance sheets. (b) Current and noncurrent operating lease liabilities are recognized within other current liabilities and other liabilities , respectively, in Ball’s unaudited condensed consolidated balance sheets. Ball’s adoption of the new lease standard had an immaterial impact on Ball’s results of operations in the unaudited condensed consolidated statements of earnings; an immaterial impact on Ball’s cash flows from operating, financing, and investing activities in the unaudited condensed consolidated statements of cash flows and no impact on Ball’s opening retained earnings balance. Ball’s accounting for finance leases remains substantially unchanged as a result of the adoption. See Note 14 for further details regarding Ball’s leases. Stranded Tax Effects In February 2018, accounting guidance was issued to permit the reclassification from accumulated other comprehensive income to retained earnings of stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act signed into law in December 2017. Ball adopted this guidance on January 1, 2019, and an election was made to reclassify on the first day of the period of adoption. The total tax amount reclassified was $79 million. Remaining stranded tax amounts in accumulated other comprehensive income, which are not related to the U.S. Tax Cuts and Jobs Act, are not significant and will be reclassified to the income statement when the activity leading to the deferral of gains and losses has ceased in full. New Accounting Guidance Cloud Computing Arrangements In August 2018, amendments to existing accounting guidance were issued to clarify the accounting for implementation costs related to cloud computing arrangements. The amendments specify that existing guidance for capitalizing implementation costs incurred to develop or obtain internal-use software also applies to capitalizing implementation costs incurred in a hosting arrangement that is a service contract. The guidance is effective for Ball on January 1, 2020, and is not expected to have a material effect on the company’s consolidated financial statements. Financial Assets Amendments to existing guidance were issued in June 2016, followed by improvements and transition relief in 2018 and 2019, requiring financial assets or a group of financial assets measured at amortized cost basis to be presented at the net amount expected to be collected when finalized. The allowance for credit losses is a valuation account that will be deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. This guidance is expected to primarily affect Ball’s trade receivables; however, the guidance applies to other financial assets as well. The guidance is effective for Ball on January 1, 2020, and is not expected to have a material effect on the company’s consolidated financial statements. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
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 outlined below: Beverage packaging, North and Central America : Beverage packaging, South America : Beverage packaging, Europe : Aerospace : As presented in the table below, Other consists of non-reportable segments located in Africa, Middle East and Asia (beverage packaging, AMEA) and Asia Pacific (beverage packaging, Asia Pacific) that manufacture and sell metal beverage containers; a non-reportable segment that manufactures and sells aerosol containers, extruded aluminum aerosol containers and aluminum slugs (aerosol packaging); undistributed corporate expenses; intercompany eliminations and other business activities. The accounting policies of the segments are the same as those in the company’s consolidated financial statements as discussed in Note 1. The company also has investments in operations in Guatemala, Panama, South Korea, the U.S. and Vietnam that are accounted for under the equity method of accounting and, accordingly, those results are not included in segment sales or earnings. Summary of Business by Segment Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2019 2018 2019 2018 Net sales Beverage packaging, North and Central America $ 1,230 $ 1,237 $ 3,647 $ 3,513 Beverage packaging, South America 392 391 1,210 1,229 Beverage packaging, Europe 699 683 2,052 1,995 Aerospace 374 283 1,081 837 Reportable segment sales 2,695 2,594 7,990 7,574 Other 258 352 765 1,258 Net sales $ 2,953 $ 2,946 $ 8,755 $ 8,832 Comparable operating earnings Beverage packaging, North and Central America $ 157 $ 153 $ 416 $ 423 Beverage packaging, South America 60 71 193 235 Beverage packaging, Europe 90 84 241 219 Aerospace 35 26 103 75 Reportable segment comparable operating earnings 342 334 953 952 Reconciling items Other (a) 27 6 38 40 Business consolidation and other activities (133) (32) (147) (131) Amortization of acquired Rexam intangibles (38) (40) (118) (124) Earnings before interest and taxes 198 268 726 737 Interest expense (79) (76) (237) (226) Debt refinancing and other costs — — (4) (1) Total interest expense (79) (76) (241) (227) Earnings before taxes $ 119 $ 192 $ 485 $ 510 (a) Includes undistributed corporate expenses, net, of $5 million and $21 million for the three months ended September 30, 2019 and 2018, respectively, and $44 million and $64 million for the nine months ended September 30, 2019 and 2018, respectively. The company does not disclose total assets by segment as it is not provided to the chief operating decision maker. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2019 | |
Acquisitions and Dispositions | |
Acquisitions and Dispositions | 4. Acquisitions and Dispositions Argentina Steel Aerosol Business In August 2019, the company announced an agreement to sell its Argentina steel aerosol packaging business which has facilities in Garin and San Luis, Argentina. As the transaction closed in October 2019, the assets and liabilities of the business have been presented as held for sale as of September 30, 2019. Upon reclassification of the assets and liabilities to held for sale, the carrying value of the disposal group as a whole was compared to the fair value of the business less costs to sell. Following this review, an allowance of $7 million was applied to the carrying value of assets held for sale, resulting in assets held for sale totaling $16 million and liabilities held for sale totaling $13 million, which are included in other current assets and other current liabilities, respectively, in the unaudited condensed consolidated balance sheets. In addition, cumulative translation adjustments of $45 million related to the Argentina business that had been previously recorded in accumulated other comprehensive income were recognized as a charge to earnings upon classification of the business as held for sale. Both charges have been presented in business consolidation and other activities in the unaudited condensed consolidated statements of earnings. Beverage Packaging China In September 2019, the company completed the sale of the its metal beverage packaging business in China for upfront consideration of approximately $213 million, subject to customary closing adjustments, plus potential additional consideration related to the relocation of an existing facility in China in the coming years. The upfront proceeds from this sale are expected to be received in the fourth quarter of 2019 and are included in receivables in the unaudited condensed consolidated balance sheet as of September 30, 2019; the potential additional consideration is included in other long-term assets. The company recorded a loss on disposal of $45 million in business consolidation and other activities in the unaudited condensed consolidated statement of earnings. The loss occurred during the third quarter as a result of a decline in the local real estate market associated with the potential facility relocation, adverse foreign exchange movements and finalization of customary closing adjustments. U.S. Steel Food and Steel Aerosol Business On July 31, 2018, Ball sold its U.S. steel food and steel aerosol packaging business and formed a joint venture, Ball Metalpack. In exchange for the sale of this business, Ball received approximately $600 million of cash proceeds, subject to customary closing adjustments completed as of December 31, 2018, as well as a 49 percent ownership interest in Ball Metalpack. This investment is reported in other assets as an equity method investment in Ball’s unaudited condensed consolidated balance sheets. Ball recorded a loss of $41 million in connection with this sale. This loss was recorded in business consolidation and other activities in the unaudited condensed consolidated statement of earnings. The assets of the sold business included nine plants that manufacture and sell steel food and steel aerosol containers. The manufacturing plants were located in Canton and Columbus, Ohio; Milwaukee and Deforest, Wisconsin; Chestnut Hill, Tennessee; Horsham, Pennsylvania; Springdale, Arkansas; and Oakdale, California. |
Revenue from Contracts With Cus
Revenue from Contracts With Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer | |
Revenue from Contracts with Customers | 5. Revenue from Contracts with Customers Disaggregation of Sales The company disaggregates net sales by reportable segments as disclosed in Note 3, and based on the timing of transfer of control for goods and services as explained below. The transfer of control for goods and services may occur at a point in time or over time. As disclosed in Note 3, the company’s business consists of four reportable segments, which encompass disaggregated product lines and geographical areas: (1) beverage packaging, North and Central America; (2) beverage packaging, South America; (3) beverage packaging, Europe; and (4) aerospace. The following table disaggregates the company’s net sales based on the timing of transfer of control: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 ($ in millions) Point in Time Over Time Total Point in Time Over Time Total Total net sales $ 555 $ 2,398 $ 2,953 $ 1,659 $ 7,096 $ 8,755 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 ($ in millions) Point in Time Over Time Total Point in Time Over Time Total Total net sales $ 665 $ 2,281 $ 2,946 $ 2,082 $ 6,750 $ 8,832 Contract Balances The company enters into contracts to sell beverage packaging, aerosol packaging, and aerospace products and services. The company did not have any contract assets at either September 30, 2019, or December 31, 2018. Unbilled receivables, which are not classified as contract assets, represent arrangements in which sales have been recorded prior to billing and right to payment is unconditional. The opening and closing balances of the company’s current and noncurrent contract liabilities are as follows: Contracts Contract Liabilities Liabilities ($ in millions) (Current) (Noncurrent) Balance at December 31, 2017 $ 45 $ — Increase — 8 Balance at December 31, 2018 $ 45 $ 8 Increase 12 — Balance at September 30, 2019 $ 57 $ 8 During the nine months ended September 30, 2019, contract liabilities increased by $12 million, which is net of cash received of $171 million and amounts recognized as sales of $159 million, all of which related to current contract liabilities. The amount of sales recognized in the nine months ended September 30, 2019, which were included in the opening contract liabilities balances, was $45 million, all of which related to current contract liabilities. Current contract liabilities are classified within other current liabilities on the unaudited condensed consolidated balance sheet and noncurrent contract liabilities are classified within other liabilities. The company also recognized sales of $4 million and $10 million in the three and nine months ended September 30, 2019, respectively, and $3 million and $8 million for the three and nine months ended September 30, 2018, respectively, from performance obligations satisfied (or partially satisfied) in prior periods. These sales amounts are the result of changes in the transaction price of the company’s contracts with customers. Transaction Price Allocated to Remaining Performance Obligations In the context of the revenue recognition standard, enforceable contracts are those that have an enforceable right to payment, which Ball typically has once a binding forecast or purchase order (or similar contract) is in place and Ball produces under the contract. Within Ball’s packaging segments, enforceable contracts as defined all have a duration of less than one year. Contracts that have an original duration of less than one year are excluded from the requirement to disclose remaining performance obligations based on the company’s election to use the practical expedient. The table below discloses: (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period for contracts with an original duration of greater than one year, and (2) when the company expects to record sales on these multi-year contracts. ($ in millions) Next Twelve Months Thereafter Total Sales expected to be recognized on multi-year contracts in place as of September 30, 2019 $ 1,300 $ 868 $ 2,168 The contracts with an original duration of less than one year, which are excluded from the table above based on the company’s election of the practical expedient, are primarily related to contracts where control will be fully transferred to the customers in less than one year. |
Business Consolidation and Othe
Business Consolidation and Other Activities | 9 Months Ended |
Sep. 30, 2019 | |
Business Consolidation and Other Activities | |
Business Consolidation and Other Activities | 6. Business Consolidation and Other Activities The following is a summary of business consolidation and other activity (charges)/income included in the unaudited condensed consolidated statements of earnings: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2019 2018 2019 2018 Beverage packaging, North and Central America $ (2) $ (14) $ (8) $ (16) Beverage packaging, South America (14) 12 22 11 Beverage packaging, Europe (9) (3) (24) (17) Other (108) (27) (137) (109) $ (133) $ (32) $ (147) $ (131) 2019 Beverage Packaging, North and Central America During the three and nine months ended September 30, 2019, the company recorded charges of $1 million and $7 million, respectively, for revised estimates of charges recorded in prior periods in connection with the previously announced closures of its beverage can manufacturing facilities in Chatsworth, California, and Longview, Texas, and its beverage end manufacturing facility in Birmingham, Alabama. The Birmingham facility ceased production during the second quarter of 2018, and the Chatsworth and Longview facilities ceased production during the third quarter of 2018. Ball sold the Chatsworth facility during the fourth quarter of 2018. Charges in the three and nine months ended September 30, 2019, included $1 million of expense for individually insignificant activities. Beverage Packaging, South America During the nine months ended September 30, 2019, the company recorded a $56 million gain related to indirect tax gain contingencies in Brazil as these amounts are now estimable and realizable. The company’s Brazilian subsidiaries filed lawsuits in 2014 and 2015 to challenge the Brazilian tax authorities regarding the computation of certain indirect taxes, claiming amounts were overpaid to the tax authorities because the tax base included a “tax on tax” component. See Note 21 for further details. The amounts recorded in business consolidation and other activities relate to periods prior to 2019. In the event other comparable cases are resolved and the amounts claimed become estimable and realizable, the company will record gains, which may result in material reimbursements to the company in future periods. During the three and nine months ended September 30, 2019, the company recorded charges of $13 million and $29 million, respectively, composed of facility shutdown costs, asset impairment, accelerated depreciation and other costs related to restructuring activities. Charges in the three and nine months ended September 30, 2019, included $1 million and $5 million of expense, respectively, for individually insignificant activities. Beverage Packaging, Europe During the three and nine months ended September 30, 2019, the company recorded charges of $6 million and $17 million, respectively, for asset impairments, accelerated depreciation and inventory impairments related to previously announced plant closures and restructuring activities. Other charges in the three and nine months ended September 30, 2019, included $3 million and $7 million of expense, respectively, for individually insignificant activities. Other During the three months ended September 30, 2019, the company recorded the following amounts: ● A $45 million loss on the sale of the metal beverage packaging business in China. ● Charges of $7 million related to the fair value of the assets and liabilities of the Argentina steel aerosol packaging business being presented as held for sale as of September 30, 2019, and charges of $45 million related to cumulative translation adjustments previously recorded in accumulated other comprehensive income. ● A settlement loss of $8 million primarily related to the purchase of non-participating group annuity contracts to settle the projected pension benefit obligations in Ball’s Canadian defined benefit pension plan which triggered settlement accounting. The settlement loss primarily represented the aggregate unamortized actuarial loss in these pension plans. ● Income of $2 million for revised estimates related to long-term incentive and other compensation arrangements associated with the Rexam acquisition and integration. ● Charges of $5 million for individually insignificant activities. During the nine months ended September 30, 2019, the company recorded the following amounts: ● A $45 million loss on the sale of the metal beverage packaging business in China and charges of $16 million for estimated employee severance costs and professional services associated with the sale. ● Charges of $7 million related to the fair value of the assets and liabilities of the Argentina steel aerosol packaging business being presented as held for sale as of September 30, 2019, and charges of $45 million related to cumulative translation adjustments previously recorded in accumulated other comprehensive income. ● A settlement loss of $8 million primarily related to the purchase of non-participating group annuity contracts to settle the projected pension benefit obligations in Ball’s Canadian defined benefit pension plan which triggered settlement accounting. The settlement loss primarily represented the aggregate unamortized actuarial loss in these pension plans. ● Charges of $5 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition and integration. ● Charges of $11 million for individually insignificant activities. 2018 Beverage Packaging, North and Central America During the three months ended September 30, 2018, the company recorded $9 million of expense for employee severance and benefits, facility shutdown costs, asset impairment, accelerated depreciation and other costs in connection with the previously announced closures of its beverage can manufacturing facilities in Chatsworth, California, and Longview, Texas, and its beverage end manufacturing facility in Birmingham, Alabama. Expense for the nine months ended September 30, 2018, included the same costs and was partially offset by the reversal of $5 million of expense for revised estimates of charges recorded in prior periods. During the nine months ended September 30, 2018, the company recorded charges of $2 million related to the closure of its Reidsville, North Carolina, plant, which ceased production in 2017. Other income and charges in the three and nine months ended September 30, 2018, included $5 million of expense and $10 million of expense, respectively, for individually insignificant activities. Beverage Packaging, South America During the third quarter of 2018, the company recorded a $16 million gain related to indirect tax gain contingencies in Brazil as these amounts became realizable. Charges in the three and nine months ended September 30, 2018, included $4 million and $5 million of expense, respectively, for individually insignificant activities. Beverage Packaging, Europe During the three and nine months ended September 30, 2018, the company recorded charges of $2 million and $15 million, respectively, for employee severance and benefits, facility shutdown costs and other costs in connection with the closure of its Recklinghausen, Germany, plant, which ceased production during the third quarter of 2017. Other charges in the three and nine months ended September 30, 2018, included $1 million and $2 million of expense, respectively, for individually insignificant activities. Other During the three months ended September 30, 2018, the company recorded the following amounts: ● A settlement loss of $14 million primarily related to the purchase of non-participating group annuity contracts to settle a portion of the projected pension benefit obligations in certain Ball U.S. defined benefit pension plans which triggered settlement accounting. The settlement loss primarily represented a pro rata portion of the aggregate unamortized actuarial loss in these pension plans. ● A $3 reduction to the estimated loss recorded as of June 30, 2018, related to the sale of the U.S. steel food and steel aerosol packaging business. ● Charges of $4 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition. ● Charges of $6 million for professional services and other costs associated with the sale of the U.S. steel food and steel aerosol packaging business. ● Charges of $6 million for individually insignificant activities. During the nine months ended September 30, 2018, the company recorded the following amounts: ● A settlement loss of $14 million primarily related to the purchase of non-participating group annuity contracts to settle a portion of the projected pension benefit obligations in certain Ball U.S. defined benefit pension plans which triggered settlement accounting. The settlement loss primarily represented a pro rata portion of the aggregate unamortized actuarial loss in these pension plans. ● A $38 million loss on the sale of the U.S. steel food and steel aerosol packaging business. ● Charges of $19 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition. ● Charges of $4 million for employee severance and benefits, accelerated depreciation and inventory impairment related to manufacturing cost rationalization. ● Charges of $10 million for professional services and other costs associated with the sale of the U.S. steel food and steel aerosol packaging business. ● Charges of $24 million for individually insignificant activities. |
Supplemental Cash Flow Statemen
Supplemental Cash Flow Statement Disclosures | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Statement Disclosures | |
Cash and Cash Equivalents Disclosure [Text Block] | 7. Supplemental Cash Flow Statement Disclosures September 30, ($ in millions) 2019 2018 Beginning of period: Cash and cash equivalents $ 721 $ 448 Current restricted cash (included in other current assets) 7 10 Noncurrent restricted cash (included in other assets) — 1 Total cash, cash equivalents and restricted cash $ 728 $ 459 End of period: Cash and cash equivalents $ 483 $ 598 Current restricted cash (included in other current assets) 9 13 Cash in assets held for sale (included in other current assets) 5 — Total cash, cash equivalents and restricted cash $ 497 $ 611 The company’s restricted cash is primarily related to receivables factoring programs and represents amounts collected from customers that have not yet been remitted to the banks as of the end of the reporting period. Noncash investing activities include the acquisition of property, plant and equipment (PP&E) for which payment has not been made. These noncash capital expenditures are excluded from the statement of cash flows. The PP&E acquired but not yet paid for amounted to $124 million at September 30, 2019, and $127 million at December 31, 2018. |
Receivables, Net
Receivables, Net | 9 Months Ended |
Sep. 30, 2019 | |
Receivables, Net | |
Receivables, Net | 8. Receivables, Net September 30, December 31, ($ in millions) 2019 2018 Trade accounts receivable $ 922 $ 812 Unbilled receivables 491 478 Less allowance for doubtful accounts (8) (10) Net trade accounts receivable 1,405 1,280 Other receivables 552 522 $ 1,957 $ 1,802 The company has entered into several regional committed and uncommitted accounts receivable factoring programs with various financial institutions for certain of its receivables. The programs are accounted for as true sales of the receivables, without recourse to Ball, and had combined limits of approximately $1.3 billion at September 30, 2019, and $1.2 billion at December 31, 2018. A total of $155 million and $178 million were available for sale under these programs as of September 30, 2019, and December 31, 2018, respectively. Other receivables include income and sales tax receivables, the receivable of $213 million for the proceeds from the sale of the China beverage packaging business, related party receivables and other miscellaneous receivables. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2019 | |
Inventories, Net | |
Inventories, Net | 9. Inventories, Net September 30, December 31, ($ in millions) 2019 2018 Raw materials and supplies $ 720 $ 727 Work-in-process and finished goods 541 614 Less inventory reserves (81) (70) $ 1,180 $ 1,271 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment, Net. | |
Property, Plant and Equipment, Net | 10. Property, Plant and Equipment, Net September 30, December 31, ($ in millions) 2019 2018 Land $ 148 $ 159 Buildings 1,352 1,359 Machinery and equipment 5,203 5,250 Construction-in-progress 508 509 7,211 7,277 Accumulated depreciation (2,891) (2,735) $ 4,320 $ 4,542 Depreciation expense amounted to $123 million and $368 million for the three and nine months ended September 30, 2019, and $121 million and $375 million for the three and nine months ended September 30, 2018, respectively. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets, Net | |
Goodwill | 11. Goodwill ($ in millions) Beverage Beverage Beverage Aerospace Other Total Balance at December 31, 2018 $ 1,275 $ 1,299 $ 1,435 $ 40 $ 426 $ 4,475 Business dispositions — — — — (51) (51) Transfer to assets held for sale — — — — (1) (1) Effects of currency exchange — — (47) — (5) (52) Balance at September 30, 2019 $ 1,275 $ 1,299 $ 1,388 $ 40 $ 369 $ 4,371 The company’s annual goodwill impairment test completed in the fourth quarter of 2018 indicated the fair value of the beverage packaging, AMEA (beverage AMEA), reporting unit exceeded its carrying amount by approximately 15 percent. The worsening business climate in Saudi Arabia has resulted in negative impacts to the profitability of our beverage AMEA reporting unit. If it becomes an expectation that this situation will continue for an extended period of time, the company may be required to record noncash impairment charges for some or all of the goodwill associated with the beverage AMEA reporting unit, the total balance of which was $102 million at September 30, 2019. As disclosed in Note 4, the company completed the sale of its China beverage packaging business in September 2019, and this disposition included $51 million of goodwill related to this business. The remaining goodwill balance associated with the beverage packaging, Asia Pacific, reporting unit is |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets, Net | |
Intangible Assets, Net | 12. Intangible Assets, Net September 30, December 31, ($ in millions) 2019 2018 Acquired Rexam customer relationships and other Rexam intangibles (net of accumulated amortization of $512 million at September 30, 2019, and $399 million at December 31, 2018) $ 1,932 $ 2,073 Capitalized software (net of accumulated amortization of $163 million at September 30, 2019, and $148 million at December 31, 2018) 69 82 Other intangibles (net of accumulated amortization of $112 million at September 30, 2019, and $112 million at December 31, 2018) 26 33 $ 2,027 $ 2,188 Total amortization expense of intangible assets amounted to $46 million and $142 million for the three and nine months ended September 30, 2019, respectively, and $50 million and $154 million for the three and nine months ended September 30, 2018, respectively. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2019 | |
Other Assets.. | |
Other Assets. | 13. Other Assets September 30, December 31, ($ in millions) 2019 2018 Long-term deferred tax assets $ 203 $ 237 Long-term pension assets 561 559 Investments in affiliates 282 302 Right-of-use operating lease assets 242 — Other 402 311 $ 1,690 $ 1,409 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Leases | 14. Leases Under the new lease standard, a contract is a lease or contains one when (1) the contract contains an explicitly or implicitly identified asset and (2) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract in exchange for consideration. The company assesses whether an arrangement is a lease, or contains a lease, upon inception of the contract. The company enters into operating leases for buildings, warehouses, office equipment, production equipment, aircraft, land and other types of equipment. When readily determinable, the discount rate used to calculate the lease liability is the rate implicit in the lease. Otherwise, the company uses its incremental borrowing rate based on the information available at lease commencement. The company’s finance and short-term leases are immaterial. Many of the company’s leases include one or more renewal and/or termination options at the company’s discretion, which are included in the determination of the lease term if the company is reasonably certain to exercise the option. The company also enters into lease agreements that have variable payments, such as those related to usage or adjustments to certain indexes. Variable lease payments are recognized in the period in which those payments are incurred. Certain leases also include residual value guarantees; however, these amounts are not probable to be owed and are not included in the calculation of the lease liability. The company subleases all or portions of certain building and warehouse leases to third parties, all of which are classified as operating leases. Some of these arrangements offer the lessee renewal options. The components of lease expense were as follows: Three Months Ended Nine Months Ended ($ in millions) September 30, 2019 September 30, 2019 Operating lease expense $ (17) $ (50) Variable lease expense 3 (7) Sublease income 1 3 Net lease expense $ (13) $ (54) Supplemental cash flow information related to leases was as follows: Three Months Ended Nine Months Ended ($ in millions) September 30, 2019 September 30, 2019 Cash paid for amounts included in the measurements of lease liabilities - Operating cash outflows for operating leases $ (11) $ (47) ROU assets obtained in exchange for operating lease obligations 18 41 Supplemental balance sheet information related to operating leases was as follows: ($ in millions) Balance Sheet Location September 30, 2019 Operating lease ROU asset Other assets $ 242 Current operating lease liabilities Other current liabilities 56 Noncurrent operating lease liabilities Other liabilities 186 Weighted average remaining lease term and weighted average discount rate for the company’s operating leases were as follows: September 30, 2019 Weighted average remaining lease term in years 10 Weighted average discount rate (%) 4.3 Maturities of lease liabilities are as follows: ($ in millions) Operating Leases 2019 (excluding the nine months ended September 30, 2019) $ 15 2020 55 2021 46 2022 39 2023 30 Thereafter 108 Future value of lease liabilities 293 Less: Imputed interest (51) Present value of lease liabilities $ 242 Total noncancellable operating leases in effect at December 31, 2018, as reported under previous lease accounting guidance, required rental payments of the following amounts in each of the following periods: ($ in millions) 2019 $ 66 2020 52 2021 41 2022 34 2023 25 Thereafter 87 Total future lease payments $ 305 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt | |
Debt | 15. Debt Long-term debt consisted of the following: September 30, December 31, ($ in millions) 2019 2018 Senior Notes 5.25% due July 2025 $ 1,000 $ 1,000 4.375% due December 2020 1,000 1,000 4.00% due November 2023 1,000 1,000 4.375%, euro denominated, due December 2023 763 803 5.00% due March 2022 750 750 4.875% due March 2026 750 750 3.50%, euro denominated, due December 2020 436 459 Senior Credit Facility (at variable rates) Term A loan, due March 2024 788 797 U.S. dollar revolver due March 2024 at variable rate 205 — Other (including debt issuance costs) (41) (41) 6,651 6,518 Less: Current portion of long-term debt (28) (8) $ 6,623 $ 6,510 On March 25, 2019, the company refinanced its existing credit facilities with a U.S. dollar term loan facility, a U.S. dollar revolving facility and a multicurrency revolving facility that mature in March 2024. The revolving facilities provide the company with up to the U.S. dollar equivalent of $1.75 billion. At September 30, 2019, taking into account outstanding letters of credit, approximately $1.5 billion was available under the company’s existing long-term, revolving credit facilities. In addition to these facilities, the company had approximately $978 million of short-term uncommitted credit facilities available at September 30, 2019, of which $333 million was outstanding and due on demand. At December 31, 2018, the company had $211 million outstanding under short-term uncommitted credit facilities. The fair value of long-term debt was estimated to be $7.1 billion at September 30, 2019, and $6.6 billion at December 31, 2018. 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. 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 were $38 million at September 30, 2019, and $28 million at December 31, 2018. The U.S. note agreements and bank credit agreement contain certain restrictions relating to dividend payments, share repurchases, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The most restrictive covenant is in the company’s bank credit agreement and requires the company to maintain a net leverage ratio (as defined) of no greater than 4.5 times at September 30, 2019. The company was in compliance with all loan agreements and debt covenants at September 30, 2019, and December 31, 2018, and has met all debt payment obligations. |
Taxes on Income
Taxes on Income | 9 Months Ended |
Sep. 30, 2019 | |
Taxes on Income | |
Taxes on Income | 16. Taxes on Income The effective tax rate was 26.9 percent for the three months ended September 30, 2019, and 15.1 percent for the nine months ended September 30, 2019. As compared to the statutory U.S. tax rate, the effective tax rate for the three and nine months ended September 30, 2019, was increased by 8.5 percentage points and 2.1 percentage points, respectively, for the discrete impact of the settlement of certain defined benefit pension plans, reduced by 6.3 percentage points and 6.4 percentage points, respectively, for the impact of share-based compensation, increased by 5.5 percentage points and 1.4 percentage points, respectively, for the impact of the sale of the China metal beverage packaging business and presentation of the Argentina steel aerosol business as held for sale, reduced by 4.7 percentage points and 2.0 percentage points, respectively, for the effect of certain non-taxable income in the U.S., increased by 4.5 percentage points and 1.9 percentage points, respectively, for the impact of global intangible low-taxed income (GILTI) net of foreign derived intangible income (FDII), and reduced by 2.0 percentage points and 1.2 percentage points, respectively, for federal tax credits. |
Employee Benefit Obligations
Employee Benefit Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Employee Benefit Obligations | |
Employee Benefit Obligations | 17. Employee Benefit Obligations September 30, December 31, ($ in millions) 2019 2018 Underfunded defined benefit pension liabilities $ 834 $ 954 Less: Current portion (24) (25) Long-term defined benefit pension liabilities 810 929 Long-term retiree medical liabilities 157 157 Deferred compensation plans 377 291 Other 39 78 $ 1,383 $ 1,455 Components of net periodic benefit cost associated with the company’s defined benefit pension plans were: Three Months Ended September 30, 2019 2018 ($ in millions) U.S. Foreign Total U.S. Foreign Total Ball-sponsored plans: Service cost $ 13 $ 2 $ 15 $ 13 $ 3 $ 16 Interest cost 26 17 43 25 18 43 Expected return on plan assets (29) (26) (55) (27) (27) (54) Amortization of prior service cost 1 — 1 — — — Recognized net actuarial loss 5 1 6 9 2 11 Settlement losses — 8 (a) 8 14 (a) — 14 Total net periodic benefit cost $ 16 $ 2 $ 18 $ 34 $ (4) $ 30 (a) Includes settlement losses related to the purchase of non-participating annuities, plant shutdown benefits and other settlements that occur in the normal course of business, which have been recorded in business consolidation and other activities. Nine Months Ended September 30, 2019 2018 ($ in millions) U.S. Foreign Total U.S. Foreign Total Ball-sponsored plans: Service cost $ 37 $ 8 $ 45 $ 40 $ 11 $ 51 Interest cost 76 53 129 73 54 127 Expected return on plan assets (86) (81) (167) (82) (81) (163) Amortization of prior service cost 1 2 3 1 — 1 Recognized net actuarial loss 16 3 19 28 4 32 Settlement losses — 8 (a) 8 14 (a) — 14 Net periodic benefit cost for Ball sponsored plans 44 (7) 37 74 (12) 62 Net periodic benefit cost for multi-employer plans — — — 1 — 1 Total net periodic benefit cost $ 44 $ (7) $ 37 $ 75 $ (12) $ 63 (a) Includes settlement losses related to the purchase of non-participating annuities, plant shutdown benefits and other settlements that occur in the normal course of business, which have been recorded in business consolidation and other activities. In July 2019 and September 2018, Ball completed the purchase of non-participating group annuity contracts that were transferred to an insurance company for benefit obligations related to the company’s Canadian and U.S. pension plans, respectively. These July 2019 and September 2018 annuity contract purchases totaled approximately $32 million and $176 million, respectively. The July 2019 annuity contract purchase settled Ball’s Canadian defined benefit pension obligation in full. The purchase of the annuity contracts triggered settlement accounting in both years. Regular lump sums paid in the normal course of plan operations were also included in these total settlement amounts. These transactions resulted in the recognition of settlement losses recorded in business consolidation and other activities of $8 million in 2019 and $14 million in 2018. The company’s U.S. pension obligations were remeasured during the third quarter of 2018 for the impacted plans, given the partial settlements involved. Non-service pension income totaling $5 million and $16 million for the three and nine months ended September 30, 2019, respectively, and $3 million for the nine months ended September 30, 2018, is included in selling, general, and administrative (SG&A) expenses. Contributions to the company’s defined benefit pension plans were $154 million for the first nine months of 2019 compared to $53 million for the first nine months of 2018, and such contributions are expected to be approximately $168 million for the full year of 2019. This estimate may change based on changes to the U.S. Pension Protection Act and actual plan asset performance, among other factors. |
Equity and Accumulated Other Co
Equity and Accumulated Other Comprehensive Earnings | 9 Months Ended |
Sep. 30, 2019 | |
Equity and Accumulated Other Comprehensive Earnings | |
Equity and Accumulated Other Comprehensive Earnings | 18. Equity and Accumulated Other Comprehensive Earnings The following tables provide additional details of the company’s equity activity: Ball Corporation and Subsidiaries Common Stock Treasury Stock Accumulated Other Number of Number of Retained Comprehensive Noncontrolling Total ($ in millions; share amounts in thousands) Shares Amount Shares Amount Earnings Earnings (Loss) Interest Equity Balance at June 30, 2019 675,463 $ 1,172 (343,623) $ (2,566) $ 5,651 $ (797) $ 104 $ 3,564 Net earnings — — — — 92 — — 92 Other comprehensive earnings (loss), net of tax — — — — — 36 — 36 Currency translation recognized in earnings as a result of the transfer of the Argentina steel aerosol business to held for sale — — — — — 45 — 45 Common dividends, net of tax benefits — — — — (49) — — (49) Treasury stock purchases — — (3,296) (232) — — — (232) Treasury shares reissued — — 64 7 — — — 7 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 588 7 — — — — — 7 Other activity — (2) — 1 — — (4) (5) Balance at September 30, 2019 676,051 $ 1,177 (346,855) $ (2,790) $ 5,694 $ (716) $ 100 $ 3,465 Ball Corporation and Subsidiaries Common Stock Treasury Stock Accumulated Other Number of Number of Retained Comprehensive Noncontrolling Total ($ in millions; share amounts in thousands) Shares Amount Shares Amount Earnings Earnings (Loss) Interest Equity Balance at June 30, 2018 672,070 $ 1,120 (325,459) $ (1,663) $ 5,199 $ (767) $ 106 $ 3,995 Net earnings — — — — 59 — — 59 Other comprehensive earnings (loss), net of tax — — — — — (33) — (33) Common dividends, net of tax benefits — — — — (34) — — (34) Treasury stock purchases — — (6,731) (269) — — — (269) Treasury shares reissued — — 172 7 — — — 7 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 629 21 — — — — — 21 Other activity — 1 — (1) — — (1) (1) Balance at September 30, 2018 672,699 $ 1,142 (332,018) $ (1,926) $ 5,224 $ (800) $ 105 $ 3,745 Ball Corporation and Subsidiaries Common Stock Treasury Stock Accumulated Other Number of Number of Retained Comprehensive Noncontrolling Total ($ in millions; share amounts in thousands) Shares Amount Shares Amount Earnings Earnings (Loss) Interest Equity Balance at December 31, 2018 673,237 $ 1,157 (337,979) $ (2,205) $ 5,341 $ (835) $ 104 $ 3,562 Net earnings — — — — 406 — — 406 Other comprehensive earnings (loss), net of tax — — — — — 153 — 153 Currency translation recognized in earnings as a result of the transfer of the Argentina steel aerosol business to held for sale — — — — — 45 — 45 Reclassification of stranded tax effects — — — — 79 (79) — — Common dividends, net of tax benefits — — — (133) — — (133) Treasury stock purchases — — (9,470) (612) — — — (612) Treasury shares reissued — — 594 19 — — — 19 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 2,814 22 — — — — — 22 Other activity — (2) — 8 1 — (4) 3 Balance at September 30, 2019 676,051 $ 1,177 (346,855) $ (2,790) $ 5,694 $ (716) $ 100 $ 3,465 Ball Corporation and Subsidiaries Common Stock Treasury Stock Accumulated Other Number of Number of Retained Comprehensive Noncontrolling Total ($ in millions; share amounts in thousands) Shares Amount Shares Amount Earnings Earnings (Loss) Interest Equity Balance at December 31, 2017, as adjusted 670,576 $ 1,084 (320,695) $ (1,474) $ 5,024 $ (655) $ 105 $ 4,084 Net earnings — — — — 303 — 1 304 Other comprehensive earnings (loss), net of tax — — — — — (144) — (144) Common dividends, net of tax benefits — — — — (104) — — (104) Treasury stock purchases — — (11,990) (471) — — — (471) Treasury shares reissued — — 667 18 — — — 18 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 2,123 57 — — — — — 57 Other activity — 1 — 1 1 (1) (1) 1 Balance at September 30, 2018 672,699 $ 1,142 (332,018) $ (1,926) $ 5,224 $ (800) $ 105 $ 3,745 In May 2019, in a privately negotiated transaction, Ball entered into an accelerated share repurchase agreement to buy $250 million of its common shares using cash on hand and available borrowings. The company purchased 3.8 million shares at an average price paid per share of $65.93. On January 23, 2019, the Board authorized the repurchase by the company of up to a total of 50 million shares. This repurchase authorization replaced all previous authorizations. Accumulated Other Comprehensive Earnings (Loss) The activity related to accumulated other comprehensive earnings (loss) was as follows: ($ in millions) Foreign Currency Translation (Net of Tax) Pension and Other Postretirement Benefits (Net of Tax) Derivatives Designated as Hedges Accumulated Other Comprehensive Earnings (Loss) Balance at December 31, 2018 $ (504) $ (277) $ (54) $ (835) Other comprehensive earnings (loss) before reclassifications 88 4 68 160 Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings — 24 (31) (7) Currency translation recognized in earnings from the transfer of the Argentina steel aerosol business to held for sale 45 — — 45 Stranded tax effects reclassified into retained earnings — (76) (3) (79) Balance at September 30, 2019 $ (371) $ (325) $ (20) $ (716) The following table provides additional details of the amounts recognized into net earnings from accumulated other comprehensive earnings (loss): Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2019 2018 2019 2018 Gains (losses) on cash flow hedges: Commodity contracts recorded in net sales $ 6 $ 2 $ 12 $ (2) Commodity contracts recorded in cost of sales (11) 19 (27) 47 Currency exchange contracts recorded in selling, general and administrative 6 — 5 1 Cross-currency swaps recorded in selling, general and administrative 32 7 41 37 Cross-currency swaps recorded in interest expense 3 4 11 10 Interest rate contracts recorded in interest expense (1) — (1) — Total before tax effect 35 32 41 93 Tax benefit (expense) on amounts reclassified into earnings (7) (8) (10) (21) Recognized gain (loss), net of tax $ 28 $ 24 $ 31 $ 72 Amortization of pension and other postretirement benefits: (a) Prior service income (expense) $ (1) $ — $ (1) $ — Actuarial gains (losses) (4) (1) (14) (20) Effect of pension settlements (b) (8) (14) (8) (14) Total before tax effect (13) (15) (23) (34) Tax benefit (expense) on amounts reclassified into earnings (4) 4 (1) 9 Recognized gain (loss), net of tax $ (17) $ (11) $ (24) $ (25) (a) The pension components are included in the computation of net periodic benefit cost disclosed in Note 17. (b) 2019 and 2018 amounts include pretax settlement losses related to the purchase of non-participating group annuity contracts. Refer to Note 17 for further details. . |
Earnings and Dividends Per Shar
Earnings and Dividends Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings and Dividends Per Share | |
Earnings and Dividends Per Share | 19. Earnings and Dividends Per Share Three Months Ended September 30, Nine Months Ended September 30, ($ in millions, except per share amounts; shares in thousands) 2019 2018 2019 2018 Net earnings attributable to Ball Corporation $ 92 $ 59 $ 406 $ 303 Basic weighted average common shares 331,148 342,982 332,726 347,113 Effect of dilutive securities 9,484 6,727 8,976 6,642 Weighted average shares applicable to diluted earnings per share 340,632 349,709 341,702 353,755 Per basic share $ 0.28 $ 0.17 $ 1.22 $ 0.87 Per diluted share $ 0.27 $ 0.17 $ 1.19 $ 0.86 Certain outstanding options were excluded from the diluted earnings per share calculation because they were anti-dilutive (i.e., their assumed conversion into common stock would increase rather than decrease earnings per share). The options excluded totaled 4 million for the three and nine months ended September 30, 2018. There were no anti-dilutive options outstanding for the three and nine months ended September 30, 2019. The company declared and paid dividends of $0.15 per share and $0.40 per share in the three and nine months ended September 30, 2019, respectively, and $0.10 per share and $0.30 per share in the three and nine months ended September 30, 2018. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 9 Months Ended |
Sep. 30, 2019 | |
Financial Instruments and Risk Management | |
Financial Instruments and Risk Management | 20. 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 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 offset 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 which 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, including option and forward contracts as economic and cash flow hedges of commodity price risk where there are material differences between sales and purchase contracted pricing and volume. At September 30, 2019, the company had aluminum contracts limiting its aluminum exposure with notional amounts of approximately $1.3 billion, of which $1.2 billion received hedge accounting treatment. Cash flow hedges relate to forecasted transactions that will occur within the next three years . Included in shareholders’ equity at September 30, 2019, within accumulated other comprehensive earnings (loss), is a net after-tax loss of $24 million associated with these contracts, $21 million of which is expected to be recognized in earnings during the next 12 months. The majority of this amount will be offset by pricing changes in sales and purchase contracts, thus resulting in little or no earnings impact to Ball. 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 its overall borrowing costs. To achieve these objectives, the company may use a variety of interest rate swaps, collars and options to manage its mix of floating and fixed-rate debt. At September 30, 2019, the company had outstanding interest rate swap and option contracts with notional amounts of approximately $1.3 billion paying fixed rates expiring within the next two 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. At September 30, 2019, the company had outstanding exchange rate forward and option contracts with notional amounts totaling approximately $3.8 billion. Approximately $10 million of net after-tax gain related to these contracts is included in accumulated other comprehensive earnings at September 30, 2019, $3 million of which is expected to be recognized in earnings during the next 12 months. The contracts outstanding at September 30, 2019, expire within the next five years . Additionally, the company entered into a $1 billion cross-currency swap contract to partially mitigate the risk associated with foreign currency denominated intercompany debt incurred in 2016. During the nine months ended September 30, 2019, the company settled portions of this contract with a notional value of $750 million, which left $250 million in place as of September 30, 2019. The remaining amount was terminated in October 2019 and is no longer in place. Approximately $6 million of net after-tax loss related to this contract is included in accumulated other comprehensive earnings at September 30, 2019, all of which was recognized in October 2019 upon termination. Common Stock Price Risk The company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is marked to fair value using the company’s closing stock price at the end of the related reporting period. The company entered into total return swaps to reduce the company’s earnings exposure to these fair value fluctuations that will be outstanding through May 2020 and have a combined notional value of 2.9 million shares. Based on the current number of shares in the program, each $1 change in the company’s stock price has an insignificant impact on pretax earnings, net of the impact of related derivatives. Collateral Calls The company’s agreements with its financial counterparties require the posting of collateral in certain circumstances when the negative mark to fair value of the derivative contracts exceeds specified levels. Additionally, the company has collateral posting arrangements with certain customers on these derivative contracts. The cash flows of the margin calls, if any, are shown within the investing section of the company’s unaudited condensed consolidated statements of cash flows. As of September 30, 2019, and December 31, 2018, the aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position was $32 million and $46 million, respectively, and no collateral was required to be posted. Fair Value Measurements The company has classified all applicable financial derivative assets and liabilities as Level 2 within the fair value hierarchy as of September 30, 2019, and December 31, 2018, and those values are presented in the tables below. The company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. September 30, 2019 ($ in millions) Balance Sheet Location Derivatives Derivatives not Total Assets: Commodity contracts $ 10 $ — $ 10 Foreign currency contracts 2 48 50 Cross-currency and other contracts 1 — 1 Total current derivative contracts Other current assets $ 13 $ 48 $ 61 Foreign currency contracts $ 31 $ — $ 31 Interest rate and other contracts 3 — 3 Total noncurrent derivative contracts Other noncurrent assets $ 34 $ — $ 34 Liabilities: Commodity contracts $ 35 $ — $ 35 Foreign currency contracts — 1 1 Cross-currency and other contracts 1 7 8 Total current derivative contracts Other current liabilities $ 36 $ 8 $ 44 Commodity contracts $ 3 $ — $ 3 Total noncurrent derivative contracts Other noncurrent liabilities $ 3 $ — $ 3 December 31, 2018 Derivatives Derivatives not Total Assets: Commodity contracts $ 9 $ 1 $ 10 Foreign currency contracts — 21 21 Cross-currency and other contracts — 5 5 Total current derivative contracts Other current assets $ 9 $ 27 $ 36 Liabilities: Commodity contracts $ 42 $ 11 $ 53 Foreign currency contracts 2 4 6 Cross-currency and other contracts 1 2 3 Total current derivative contracts Other current liabilities $ 45 $ 17 $ 62 Commodity contracts $ 2 $ — $ 2 Cross-currency and other contracts 62 — 62 Total noncurrent derivative contracts Other noncurrent liabilities $ 64 $ — $ 64 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. The company values each of its 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 a 12-month LIBOR rate. Ball performs validations of its internally derived fair values reported for our financial instruments on a quarterly basis utilizing counterparty valuation statements. Additionally, the company evaluates counterparty creditworthiness and, as of September 30, 2019, has not identified any circumstances requiring the reported values of its financial instruments to be adjusted. The following table provides the effects of derivative instruments in the consolidated statement of earnings and on accumulated other comprehensive earnings (loss): Three Months Ended September 30, 2019 2018 ($ in millions) Location of Gain (Loss) Cash Flow Gain (Loss) on Cash Flow Gain (Loss) on Commodity contracts - manage exposure to customer pricing Net sales $ 6 $ — $ 2 $ — Commodity contracts - manage exposure to supplier pricing Cost of sales (11) (1) 19 2 Interest rate contracts - manage exposure for outstanding debt Interest expense (1) — — — Foreign currency contracts - manage currency exposure Selling, general and administrative 6 90 — 16 Cross-currency swaps - manage intercompany currency exposure Selling, general and administrative 32 — 7 — Cross-currency swaps - manage intercompany currency exposure Interest expense 3 — 4 — Equity contracts Selling, general and administrative — 7 — 21 Total $ 35 $ 96 $ 32 $ 39 Nine Months Ended September 30, 2019 2018 ($ in millions) Location of Gain (Loss) Cash Flow Gain (Loss) on Cash Flow Gain (Loss) on Commodity contracts - manage exposure to customer pricing Net sales $ 12 $ — $ (2) $ 1 Commodity contracts - manage exposure to supplier pricing Cost of sales (27) 2 47 6 Interest rate contracts - manage exposure for outstanding debt Interest expense (1) — — — Foreign currency contracts - manage currency exposure Selling, general and administrative 5 133 1 73 Cross-currency swaps - manage intercompany currency exposure Selling, general and administrative 41 — 37 — Cross-currency swaps - manage intercompany currency exposure Interest expense 11 — 10 — Equity contracts Selling, general and administrative — 70 — 14 Total $ 41 $ 205 $ 93 $ 94 The changes in accumulated other comprehensive earnings (loss) for derivatives designated as hedges were as follows: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2019 2018 2019 2018 Amounts reclassified into earnings: Commodity contracts $ 5 $ (21) $ 15 $ (45) Cross-currency swap contracts (35) (11) (52) (47) Interest rate contracts 1 — 1 — Currency exchange contracts (6) — (5) (1) Change in fair value of cash flow hedges: Commodity contracts (5) (11) (10) 1 Interest rate contracts (1) — (1) — Cross-currency swap contracts 41 13 81 45 Currency exchange contracts 14 1 18 (2) Foreign currency and tax impacts (2) 6 (10) 12 Stranded tax effects reclassified into retained earnings: Commodity contracts — — 2 — Cross-currency swap contracts — — (5) — $ 12 $ (23) $ 34 $ (37) |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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. In addition, we have received claims alleging that employees in certain plants have suffered damages due to exposure to alleged workplace hazards. 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 estimates that potential liabilities for all currently known and estimable environmental matters are approximately $28 million in the aggregate, and such amounts have been included in other current liabilities and other noncurrent liabilities at September 30, 2019. 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. A site was selected to begin data review on over 30 industrial companies and government entities and at least two PRP groups have been discussing various allocation proposals. The USEPA issued the site Record of Decision (ROD) in December 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, to which Ball responded during the fourth quarter of 2016. A group of de minimis PRPs, including Ball, retained a technical consultant to assist with their positions vis-à-vis larger PRPs, and further presentations were made to the site allocator during the fourth quarter of 2017 and the first quarter of 2018. 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, 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. 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 (the Court) seeking a declaratory judgment that the manufacture, 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. The case was stayed by mutual agreement of the parties into the third quarter of 2016, during which Crown made preparations for its discovery with respect to certain ends previously produced by Rexam’s U.S. subsidiary, Rexam Beverage Can Company (RBCC). Such discovery began during the first half of 2017 and concluded in the fourth quarter of 2018. The parties attempted to mediate the case on August 1, 2017, but no progress was made, and the case continued as scheduled. In December, 2018, BMBCC and RBCC filed a motion for summary judgment that the Crown patents at issue are invalid and that the applicable ends supplied by BMBCC and RBCC did not infringe the patents. Crown did not file a motion for summary judgment. Oral argument on the motion filed by BMBCC and RBCC was completed in January 2019. On June 21, 2019, the District Court issued an order sustaining the BMBCC/RBCC motion as to invalidity, declining to rule on the other grounds as moot, and indicating that an expanded opinion and an appealable order would be forthcoming. The expanded opinion was docketed on July 22, 2019. The final, appealable order was issued by the Court on September 25, 2019, and the expanded opinion was unsealed. On October 22, 2019, Crown filed a Notice of Appeal of the decision of the Court to the Court of Appeals for the Federal Circuit. 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. A former Rexam Personal Care site in Annecy, France, was found in 2003 to be contaminated following a leak of chlorinated solvents (TCE) from an underground feedline. The site underwent extensive investigation and an active remediation treatment system was put in place in 2006. The business operating from the site was sold to Albea in 2013 and in turn to a French company CATIDOM (operating as Reboul). Reboul vacated the site in September 2014, and the site reverted back to Rexam during the first quarter of 2015. As part of the site closure regulatory requirements, a new regulatory permit (Prefectoral Order) was issued in June 2016, which includes requirements to undertake a cost-benefit analysis and pilot studies of further treatment for the known residual solvent contamination following the shutdown of the current on-site treatment system. A new management plan was proposed to the French Environmental Authorities (DREAL) during 2018 and is the subject of ongoing discussions ahead of a final plan for the site being addressed. Based on the information available to the company at this 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 sales taxes and indirect tax incentives. 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. During the first quarter of 2017, the Brazilian Supreme Court (the Court) ruled against the Brazilian tax authorities in a leading case related to the computation of certain indirect taxes. The Court ruled that the indirect tax base should not include a value-added tax known as “ICMS.” By removing the ICMS from the tax base, the Court effectively eliminated a “tax on tax.” The Court decision, in principle, affects all applicable judicial proceedings in progress. However, after publication of the decision in October 2017, the Brazilian tax authorities filed an appeal seeking clarification of certain matters, including the amount of ICMS to which taxpayers would be entitled in order to reduce their indirect tax base (i.e., the gross rate or net rate). The appeal also requested a modulation of the decision’s effects, which may limit its impact on taxpayers. The company’s Brazilian subsidiaries paid to the Brazilian tax authorities the gross amounts of certain indirect taxes (which included ICMS in their tax base) and filed lawsuits in 2014 and 2015 to challenge the legality of these tax on tax amounts. Pursuant to these lawsuits, the company requested reimbursement of prior excess tax payments and entitlement to retain amounts not remitted. During the third quarter of 2018, the company learned of a further decision of the Court indicating that lawsuits filed prior to the trial resulting in its 2017 decision, such as those filed by the company, would likely be upheld. The company also noted that other Brazilian companies, including customers of its Brazilian subsidiaries, which had timely filed equivalent lawsuits, were recording income based on the applicable ICMS amounts retained. During the second quarter of 2019, the company received additional favorable court rulings and completed its analysis of certain prior year overpayments related to ICMS. As these gain contingency amounts are now estimable and realizable, the company recorded $56 million of prior year collections in business consolidation and other activities within the company’s condensed consolidated statement of earnings. The company is currently seeking reimbursement for additional ICMS-related amounts previously paid to the Brazilian government; however, such amounts cannot be estimated at this time. In the event other comparable cases are resolved and the amounts claimed become estimable and realizable, the company will record gains, which may result in material reimbursements to the company in future periods. |
Indemnifications and Guarantees
Indemnifications and Guarantees | 9 Months Ended |
Sep. 30, 2019 | |
Indemnifications and Guarantees | |
Indemnifications and Guarantees | 22. Indemnifications and Guarantees General Guarantees The company and certain 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 or other obligations. 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 or other 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. Other than the indemnifications provided in connection with the Rexam acquisition, the company has not recorded any material liabilities for these indemnities, commitments and guarantees in the accompanying consolidated balance sheets. The company does, however, accrue for payments under promissory notes and other evidences of incurred indebtedness and for losses for any known contingent liability, including those that may arise from indemnifications, commitments and guarantees, when future payment is both reasonably estimable and probable. Finally, the company carries specific and general liability insurance policies and has obtained indemnities, commitments and guarantees from third-party purchasers, sellers and other contracting parties, which the company believes would, in certain circumstances, provide recourse to certain claims arising from these indemnifications, commitments and guarantees. Debt Guarantees The company’s and its subsidiaries’ obligations under the senior notes and senior credit facilities (or, in the case of U.S. domiciled foreign subsidiaries under the senior credit facilities, the obligations of foreign credit parties only) are guaranteed on a full, unconditional and joint and several basis by certain of the company’s domestic subsidiaries and the domestic subsidiary borrowers, and obligations of other guarantors and the subsidiary borrowers under the senior credit facilities are guaranteed by the company, in each case with certain exceptions. These guarantees are required in support of the senior notes and senior credit facilities referred to above, are coterminous with the terms of the respective note indentures, senior notes and credit agreement and could be enforced by the holders of the obligations thereunder during the continuation of an event of default under the note indentures, the senior notes and/or the credit agreement. The maximum potential amounts which could be required to be paid under such guarantees are essentially equal to the then outstanding obligations under the respective senior notes or the credit agreement (or, in the case of U.S. domiciled foreign subsidiaries under the senior credit facilities, the obligations of foreign credit parties only), with certain exceptions. All obligations under the guarantees of the senior credit facilities are secured, with certain exceptions, by a valid first priority perfected lien or pledge on (i) 100 percent of the capital stock of each of the company's material wholly owned domestic subsidiaries directly owned by the company or any of its wholly owned domestic subsidiaries and (ii) 65 percent of the capital stock of each of the company's material wholly owned first-tier foreign subsidiaries directly owned by the company or any of its wholly owned domestic subsidiaries. In addition, the obligations of certain foreign borrowers and foreign pledgors under the loan documents will be secured, with certain exceptions, by a valid first priority perfected lien or pledge on 100 percent of the capital stock of certain of the company's material wholly owned foreign subsidiaries and material wholly owned U.S. domiciled foreign subsidiaries directly owned by the company or any of its wholly owned material subsidiaries. The company is not in default under the above senior notes or senior credit facilities. The required 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 under the Securities and Exchange Commission (SEC) regulations. |
Subsidiary Guarantees of Debt
Subsidiary Guarantees of Debt | 9 Months Ended |
Sep. 30, 2019 | |
Subsidiary Guarantees of Debt | |
Subsidiary Guarantee of Debt | 23. Subsidiary Guarantees of Debt The following unaudited condensed consolidating financial information is presented in accordance with SEC Regulations S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. For purposes of the presentation of unaudited condensed consolidating financial information, the subsidiaries of the company providing the guarantees are referred to as the guarantor subsidiaries, and subsidiaries of the company other than the guarantor subsidiaries are referred to as the non-guarantor subsidiaries. The eliminating adjustments substantively consist of intercompany transactions and the elimination of equity investments and earnings of subsidiaries. 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 under SEC regulations. The company’s senior notes are guaranteed on a full and unconditional, joint and several basis by certain domestic subsidiaries of the company. Each of the guarantor subsidiaries is 100 percent owned by the company. As described in the supplemental indentures governing the company’s existing senior notes, the senior notes are guaranteed by any of the company’s domestic subsidiaries that guarantee any other indebtedness of the company. The following is unaudited condensed consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of September 30, 2019, and December 31, 2018, and for the three and nine months ended September 30, 2019 and 2018. The unaudited condensed consolidating financial information presented below is not necessarily indicative of the financial position, results of operations, earnings or cash flows of the company or any of the company’s subsidiaries on a stand-alone basis. Unaudited Condensed Consolidating Statement of Earnings Three Months Ended September 30, 2019 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Net sales $ — $ 1,680 $ 1,480 $ (207) $ 2,953 Cost and expenses Cost of sales (excluding depreciation and amortization) — (1,443) (1,127) 207 (2,363) Depreciation and amortization (2) (51) (116) — (169) Selling, general and administrative 41 (84) (47) — (90) Business consolidation and other activities (7) (2) (124) — (133) Equity in results of subsidiaries 80 (37) — (43) — Intercompany 49 (24) (25) — — 161 (1,641) (1,439) 164 (2,755) Earnings (loss) before interest and taxes 161 39 41 (43) 198 Interest expense (80) 1 — — (79) Debt refinancing and other costs — — — — — Total interest expense (80) 1 — — (79) Earnings (loss) before taxes 81 40 41 (43) 119 Tax (provision) benefit 11 (13) (30) — (32) Equity in results of affiliates, net of tax — 1 4 — 5 Net earnings (loss) 92 28 15 (43) 92 Less net earnings attributable to noncontrolling interests — — — — — Net earnings (loss) attributable to Ball Corporation $ 92 $ 28 $ 15 $ (43) $ 92 Comprehensive earnings (loss) attributable to Ball Corporation $ 173 $ 84 $ 89 $ (173) $ 173 Unaudited Condensed Consolidating Statement of Earnings Three Months Ended September 30, 2018 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Net sales $ — $ 1,666 $ 1,481 $ (201) $ 2,946 Cost and expenses Cost of sales (excluding depreciation and amortization) — (1,405) (1,158) 201 (2,362) Depreciation and amortization (1) (49) (121) — (171) Selling, general and administrative (244) 179 (48) — (113) Business consolidation and other activities (53) 13 8 — (32) Equity in results of subsidiaries 369 8 — (377) — Intercompany 52 (6) (46) — — 123 (1,260) (1,365) (176) (2,678) Earnings (loss) before interest and taxes 123 406 116 (377) 268 Interest expense (79) 3 — — (76) Debt refinancing and other costs — — — — — Total interest expense (79) 3 — — (76) Earnings (loss) before taxes 44 409 116 (377) 192 Tax (provision) benefit 15 (103) (52) — (140) Equity in results of affiliates, net of tax — 3 4 — 7 Net earnings (loss) 59 309 68 (377) 59 Less net earnings attributable to noncontrolling interests — — — — — Net earnings (loss) attributable to Ball Corporation $ 59 $ 309 $ 68 $ (377) $ 59 Comprehensive earnings (loss) attributable to Ball Corporation $ 26 $ 313 $ 8 $ (321) $ 26 Unaudited Condensed Consolidating Statement of Earnings For the Nine Months Ended September 30, 2019 ($ in millions) Ball Guarantor Non-Guarantor Subsidiaries Eliminating Consolidated Net sales $ — $ 4,966 $ 4,408 $ (619) $ 8,755 Cost and expenses Cost of sales (excluding depreciation and amortization) — (4,295) (3,368) 619 (7,044) Depreciation and amortization (4) (150) (356) — (510) Selling, general and administrative (20) (172) (136) — (328) Business consolidation and other activities (23) (9) (115) — (147) Equity in results of subsidiaries 467 108 — (575) — Intercompany 176 (88) (88) — — 596 (4,606) (4,063) 44 (8,029) Earnings (loss) before interest and taxes 596 360 345 (575) 726 Interest expense (240) 4 (1) — (237) Debt refinancing and other costs (4) — — — (4) Total interest expense (244) 4 (1) — (241) Earnings (loss) before taxes 352 364 344 (575) 485 Tax (provision) benefit 54 (52) (75) — (73) Equity in results of affiliates, net of tax — (12) 6 — (6) Net earnings 406 300 275 (575) 406 Less net earnings attributable to noncontrolling interests — — — — — Net earnings attributable to Ball Corporation $ 406 $ 300 $ 275 $ (575) $ 406 Comprehensive earnings (loss) attributable to Ball Corporation $ 604 $ 506 $ 442 $ (948) $ 604 Unaudited Condensed Consolidating Statement of Earnings For the Nine Months Ended September 30, 2018 ($ in millions) Ball Guarantor Non-Guarantor Subsidiaries Eliminating Consolidated Net sales $ — $ 5,003 $ 4,428 $ (599) $ 8,832 Cost and expenses Cost of sales (excluding depreciation and amortization) — (4,235) (3,447) 599 (7,083) Depreciation and amortization (4) (153) (372) — (529) Selling, general and administrative (278) 65 (139) — (352) Business consolidation and other activities (70) (41) (20) — (131) Equity in results of subsidiaries 634 61 — (695) — Intercompany 228 (158) (70) — — 510 (4,461) (4,048) (96) (8,095) Earnings (loss) before interest and taxes 510 542 380 (695) 737 Interest expense (235) 10 (1) — (226) Debt refinancing and other costs (1) — — — (1) Total interest expense (236) 10 (1) — (227) Earnings (loss) before taxes 274 552 379 (695) 510 Tax (provision) benefit 29 (135) (114) — (220) Equity in results of affiliates, net of tax — 1 13 — 14 Net earnings 303 418 278 (695) 304 Less net earnings attributable to noncontrolling interests — — (1) — (1) Net earnings attributable to Ball Corporation $ 303 $ 418 $ 277 $ (695) $ 303 Comprehensive earnings (loss) attributable to Ball Corporation $ 159 $ 309 $ 105 $ (414) $ 159 Unaudited Condensed Consolidating Balance Sheet September 30, 2019 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Assets Current assets Cash and cash equivalents $ 7 $ — $ 476 $ — $ 483 Receivables, net 9 594 1,354 — 1,957 Intercompany receivables 103 237 1,711 (2,051) — Inventories, net — 506 674 — 1,180 Other current assets 37 39 133 — 209 Total current assets 156 1,376 4,348 (2,051) 3,829 Noncurrent assets Property, plant and equipment, net 34 1,403 2,883 — 4,320 Investment in subsidiaries 11,678 2,589 (99) (14,168) — Goodwill — 1,191 3,180 — 4,371 Intangible assets, net 18 383 1,626 — 2,027 Other assets 315 299 1,076 — 1,690 Total assets $ 12,201 $ 7,241 $ 13,014 $ (16,219) $ 16,237 Liabilities and Equity Current liabilities Short-term debt and current portion of long-term debt $ 239 $ — $ 122 $ — $ 361 Accounts payable 17 949 1,692 — 2,658 Intercompany payables 2,379 123 156 (2,658) — Accrued employee costs 49 119 88 — 256 Other current liabilities 136 142 220 — 498 Total current liabilities 2,820 1,333 2,278 (2,658) 3,773 Noncurrent liabilities Long-term debt 6,620 — 3 — 6,623 Employee benefit obligations 822 293 268 — 1,383 Intercompany long-term notes (1,263) (1,764) 2,420 607 — Deferred taxes (247) 247 602 — 602 Long-term deferred tax and other liabilities 84 128 179 — 391 Total liabilities 8,836 237 5,750 (2,051) 12,772 Common stock 1,177 2,523 3,900 (6,423) 1,177 Preferred stock — — 5 (5) — Retained earnings 5,694 4,939 3,553 (8,492) 5,694 Accumulated other comprehensive earnings (loss) (716) (458) (294) 752 (716) Treasury stock, at cost (2,790) — — — (2,790) Total Ball Corporation equity 3,365 7,004 7,164 (14,168) 3,365 Noncontrolling interests — — 100 — 100 Total equity 3,365 7,004 7,264 (14,168) 3,465 Total liabilities and equity $ 12,201 $ 7,241 $ 13,014 $ (16,219) $ 16,237 Unaudited Condensed Consolidating Balance Sheet December 31, 2018 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Assets Current assets Cash and cash equivalents $ 4 $ — $ 717 $ — $ 721 Receivables, net 21 613 1,168 — 1,802 Intercompany receivables 66 495 1,657 (2,218) — Inventories, net — 527 744 — 1,271 Other current assets 32 35 79 — 146 Total current assets 123 1,670 4,365 (2,218) 3,940 Noncurrent assets Property, plant and equipment, net 24 1,378 3,140 — 4,542 Investment in subsidiaries 11,145 3,779 (99) (14,825) — Goodwill — 1,191 3,284 — 4,475 Intangible assets, net 18 409 1,761 — 2,188 Other assets 213 215 981 — 1,409 Total assets $ 11,523 $ 8,642 $ 13,432 $ (17,043) $ 16,554 Liabilities and Equity Current liabilities Short-term debt and current portion of long-term debt $ 173 $ — $ 46 $ — $ 219 Accounts payable 50 1,178 1,867 — 3,095 Intercompany payables 2,310 49 466 (2,825) — Accrued employee costs 39 144 106 — 289 Other current liabilities 153 119 220 — 492 Total current liabilities 2,725 1,490 2,705 (2,825) 4,095 Noncurrent liabilities Long-term debt 6,504 — 6 — 6,510 Employee benefit obligations 871 286 298 — 1,455 Intercompany long-term notes (1,977) 3 1,368 606 — Deferred taxes (172) 169 648 — 645 Other liabilities 114 45 128 — 287 Total liabilities 8,065 1,993 5,153 (2,219) 12,992 Common stock 1,157 2,523 5,314 (7,837) 1,157 Preferred stock — — 5 (5) — Retained earnings 5,341 4,712 3,316 (8,028) 5,341 Accumulated other comprehensive earnings (loss) (835) (586) (460) 1,046 (835) Treasury stock, at cost (2,205) — — — (2,205) Total Ball Corporation equity 3,458 6,649 8,175 (14,824) 3,458 Noncontrolling interests — — 104 — 104 Total equity 3,458 6,649 8,279 (14,824) 3,562 Total liabilities and equity $ 11,523 $ 8,642 $ 13,432 $ (17,043) $ 16,554 Unaudited Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2019 ($ in millions) Ball Guarantor Non-Guarantor Consolidated Cash provided by (used in) operating activities $ (332) $ 256 $ 732 $ 656 Cash flows from investing activities Capital expenditures (12) (186) (227) (425) Proceeds from dispositions, net of cash sold — — (50) (50) Other, net (2) 10 18 26 Cash provided by (used in) investing activities (14) (176) (259) (449) Cash flows from financing activities Long-term borrowings 1,095 — 3 1,098 Repayments of long-term borrowings (900) — (6) (906) Net change in short-term borrowings 47 — 84 131 Proceeds from issuances of common stock, net of shares used for taxes 16 — — 16 Acquisitions of treasury stock (614) — — (614) Common stock dividends (133) — — (133) Intercompany 849 (80) (769) — Other, net (10) — — (10) Cash provided by (used in) financing activities 350 (80) (688) (418) Effect of exchange rate changes on cash — — (20) (20) Change in cash, cash equivalents and restricted cash 4 — (235) (231) Cash, cash equivalents and restricted cash – beginning of period 3 — 725 728 Cash, cash equivalents and restricted cash – end of period $ 7 $ — $ 490 $ 497 Unaudited Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2018 ($ in millions) Ball Guarantor Non-Guarantor Consolidated Cash provided by (used in) operating activities $ (103) $ 148 $ 982 $ 1,027 Cash flows from investing activities Capital expenditures (5) (356) (255) (616) Proceeds from dispositions, net of cash sold (53) 604 — 551 Other, net (1) 18 33 50 Cash provided by (used in) investing activities (59) 266 (222) (15) Cash flows from financing activities Long-term borrowings 1,475 — — 1,475 Repayments of long-term borrowings (1,525) — (6) (1,531) Net change in short-term borrowings (138) — (51) (189) Proceeds from issuances of common stock, net of shares used for taxes 25 — — 25 Acquisitions of treasury stock (464) — — (464) Common stock dividends (104) — — (104) Intercompany 905 (413) (492) — Other, net (12) (1) — (13) Cash provided by (used in) financing activities 162 (414) (549) (801) Effect of exchange rate changes on cash — — (59) (59) Change in cash, cash equivalents and restricted cash — — 152 152 Cash, cash equivalents and restricted cash – beginning of period 5 — 454 459 Cash, cash equivalents and restricted cash – end of period $ 5 $ — $ 606 $ 611 |
Accounting Pronouncements (Poli
Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Pronouncements | |
Accounting Pronouncements Recently Adopted | Recently Adopted Accounting Standards New Lease Accounting Guidance In February 2016, lease accounting guidance was issued which, for operating leases, requires a lessee to recognize a right-of-use (ROU) asset and a lease liability. The guidance also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight line basis. On January 1, 2019, Ball adopted the new guidance and all related amendments (the new lease standard), applying the modified retrospective method to all contracts that were not completed as of January 1, 2019. As such, comparative information has not been restated and continues to be reported under the accounting standards in effect for those prior periods. As part of adopting the new lease standard, Ball has made the following elections: ● To carry forward the historical lease determination and classification conclusions as established under the old standard, and not reassess initial direct costs for existing leases; ● To carry forward its historical accounting treatment for land easements on existing agreements; ● Not to apply the balance sheet recognition requirements of the new lease standard to leases with a term of one year or less (short-term leases); and ● For all classes of underlying assets, to account for non-lease components of a contract as part of the single lease component to which they are related. The adoption of the new lease standard resulted in the following impacts on our unaudited consolidated balance sheets: ($ in millions) Balance at December 31, 2018 Adjustments Due to Adoption Balance at January 1, 2019 Assets: Other current assets $ 140 $ (1) $ 139 Operating lease right-of-use assets (a) — 244 244 Other assets 1,409 (25) 1,384 Liabilities: Other current liabilities $ 492 $ (3) $ 489 Current operating lease liabilities (b) — 53 53 Other liabilities 287 (14) 273 Noncurrent operating lease liabilities (b) — 182 182 (a) Operating lease right-of-use assets are recognized within other assets in Ball’s unaudited condensed consolidated balance sheets. (b) Current and noncurrent operating lease liabilities are recognized within other current liabilities and other liabilities , respectively, in Ball’s unaudited condensed consolidated balance sheets. Ball’s adoption of the new lease standard had an immaterial impact on Ball’s results of operations in the unaudited condensed consolidated statements of earnings; an immaterial impact on Ball’s cash flows from operating, financing, and investing activities in the unaudited condensed consolidated statements of cash flows and no impact on Ball’s opening retained earnings balance. Ball’s accounting for finance leases remains substantially unchanged as a result of the adoption. See Note 14 for further details regarding Ball’s leases. Stranded Tax Effects In February 2018, accounting guidance was issued to permit the reclassification from accumulated other comprehensive income to retained earnings of stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act signed into law in December 2017. Ball adopted this guidance on January 1, 2019, and an election was made to reclassify on the first day of the period of adoption. The total tax amount reclassified was $79 million. Remaining stranded tax amounts in accumulated other comprehensive income, which are not related to the U.S. Tax Cuts and Jobs Act, are not significant and will be reclassified to the income statement when the activity leading to the deferral of gains and losses has ceased in full. |
New Accounting Guidance | New Accounting Guidance Cloud Computing Arrangements In August 2018, amendments to existing accounting guidance were issued to clarify the accounting for implementation costs related to cloud computing arrangements. The amendments specify that existing guidance for capitalizing implementation costs incurred to develop or obtain internal-use software also applies to capitalizing implementation costs incurred in a hosting arrangement that is a service contract. The guidance is effective for Ball on January 1, 2020, and is not expected to have a material effect on the company’s consolidated financial statements. Financial Assets Amendments to existing guidance were issued in June 2016, followed by improvements and transition relief in 2018 and 2019, requiring financial assets or a group of financial assets measured at amortized cost basis to be presented at the net amount expected to be collected when finalized. The allowance for credit losses is a valuation account that will be deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. This guidance is expected to primarily affect Ball’s trade receivables; however, the guidance applies to other financial assets as well. The guidance is effective for Ball on January 1, 2020, and is not expected to have a material effect on the company’s consolidated financial statements. |
Accounting Pronouncements (Tabl
Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Pronouncements | |
Schedule of impact of adoption of new lease standard on assets and liabilities | ($ in millions) Balance at December 31, 2018 Adjustments Due to Adoption Balance at January 1, 2019 Assets: Other current assets $ 140 $ (1) $ 139 Operating lease right-of-use assets (a) — 244 244 Other assets 1,409 (25) 1,384 Liabilities: Other current liabilities $ 492 $ (3) $ 489 Current operating lease liabilities (b) — 53 53 Other liabilities 287 (14) 273 Noncurrent operating lease liabilities (b) — 182 182 (a) Operating lease right-of-use assets are recognized within other assets in Ball’s unaudited condensed consolidated balance sheets. (b) Current and noncurrent operating lease liabilities are recognized within other current liabilities and other liabilities , respectively, in Ball’s unaudited condensed consolidated balance sheets. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Segment Information | |
Summary of business by segment | Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2019 2018 2019 2018 Net sales Beverage packaging, North and Central America $ 1,230 $ 1,237 $ 3,647 $ 3,513 Beverage packaging, South America 392 391 1,210 1,229 Beverage packaging, Europe 699 683 2,052 1,995 Aerospace 374 283 1,081 837 Reportable segment sales 2,695 2,594 7,990 7,574 Other 258 352 765 1,258 Net sales $ 2,953 $ 2,946 $ 8,755 $ 8,832 Comparable operating earnings Beverage packaging, North and Central America $ 157 $ 153 $ 416 $ 423 Beverage packaging, South America 60 71 193 235 Beverage packaging, Europe 90 84 241 219 Aerospace 35 26 103 75 Reportable segment comparable operating earnings 342 334 953 952 Reconciling items Other (a) 27 6 38 40 Business consolidation and other activities (133) (32) (147) (131) Amortization of acquired Rexam intangibles (38) (40) (118) (124) Earnings before interest and taxes 198 268 726 737 Interest expense (79) (76) (237) (226) Debt refinancing and other costs — — (4) (1) Total interest expense (79) (76) (241) (227) Earnings before taxes $ 119 $ 192 $ 485 $ 510 (a) Includes undistributed corporate expenses, net, of $5 million and $21 million for the three months ended September 30, 2019 and 2018, respectively, and $44 million and $64 million for the nine months ended September 30, 2019 and 2018, respectively. |
Revenue from Contracts With C_2
Revenue from Contracts With Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer | |
Schedule of the disaggregation of revenue by timing of transfer of control | Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 ($ in millions) Point in Time Over Time Total Point in Time Over Time Total Total net sales $ 555 $ 2,398 $ 2,953 $ 1,659 $ 7,096 $ 8,755 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 ($ in millions) Point in Time Over Time Total Point in Time Over Time Total Total net sales $ 665 $ 2,281 $ 2,946 $ 2,082 $ 6,750 $ 8,832 |
Schedule of balances of contract liabilities | Contracts Contract Liabilities Liabilities ($ in millions) (Current) (Noncurrent) Balance at December 31, 2017 $ 45 $ — Increase — 8 Balance at December 31, 2018 $ 45 $ 8 Increase 12 — Balance at September 30, 2019 $ 57 $ 8 |
Schedule of transaction price allocated to remaining performance obligations | ($ in millions) Next Twelve Months Thereafter Total Sales expected to be recognized on multi-year contracts in place as of September 30, 2019 $ 1,300 $ 868 $ 2,168 |
Business Consolidation and Ot_2
Business Consolidation and Other Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Consolidation and Other Activities | |
Summary of business consolidation and other activity (charges) / income included in the condensed consolidated statements of earnings | Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2019 2018 2019 2018 Beverage packaging, North and Central America $ (2) $ (14) $ (8) $ (16) Beverage packaging, South America (14) 12 22 11 Beverage packaging, Europe (9) (3) (24) (17) Other (108) (27) (137) (109) $ (133) $ (32) $ (147) $ (131) |
Supplemental Cash Flow Statem_2
Supplemental Cash Flow Statement Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Statement Disclosures | |
Schedule of cash, cash equivalents and restricted cash | September 30, ($ in millions) 2019 2018 Beginning of period: Cash and cash equivalents $ 721 $ 448 Current restricted cash (included in other current assets) 7 10 Noncurrent restricted cash (included in other assets) — 1 Total cash, cash equivalents and restricted cash $ 728 $ 459 End of period: Cash and cash equivalents $ 483 $ 598 Current restricted cash (included in other current assets) 9 13 Cash in assets held for sale (included in other current assets) 5 — Total cash, cash equivalents and restricted cash $ 497 $ 611 |
Receivables, Net (Tables)
Receivables, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables, Net | |
Schedule of receivables | September 30, December 31, ($ in millions) 2019 2018 Trade accounts receivable $ 922 $ 812 Unbilled receivables 491 478 Less allowance for doubtful accounts (8) (10) Net trade accounts receivable 1,405 1,280 Other receivables 552 522 $ 1,957 $ 1,802 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventories, Net | |
Schedule of inventories | September 30, December 31, ($ in millions) 2019 2018 Raw materials and supplies $ 720 $ 727 Work-in-process and finished goods 541 614 Less inventory reserves (81) (70) $ 1,180 $ 1,271 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment, Net. | |
Schedule of property, plant and equipment | September 30, December 31, ($ in millions) 2019 2018 Land $ 148 $ 159 Buildings 1,352 1,359 Machinery and equipment 5,203 5,250 Construction-in-progress 508 509 7,211 7,277 Accumulated depreciation (2,891) (2,735) $ 4,320 $ 4,542 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets, Net | |
Schedule of goodwill | ($ in millions) Beverage Beverage Beverage Aerospace Other Total Balance at December 31, 2018 $ 1,275 $ 1,299 $ 1,435 $ 40 $ 426 $ 4,475 Business dispositions — — — — (51) (51) Transfer to assets held for sale — — — — (1) (1) Effects of currency exchange — — (47) — (5) (52) Balance at September 30, 2019 $ 1,275 $ 1,299 $ 1,388 $ 40 $ 369 $ 4,371 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets, Net | |
Schedule of Finite-Lived Intangible Assets | September 30, December 31, ($ in millions) 2019 2018 Acquired Rexam customer relationships and other Rexam intangibles (net of accumulated amortization of $512 million at September 30, 2019, and $399 million at December 31, 2018) $ 1,932 $ 2,073 Capitalized software (net of accumulated amortization of $163 million at September 30, 2019, and $148 million at December 31, 2018) 69 82 Other intangibles (net of accumulated amortization of $112 million at September 30, 2019, and $112 million at December 31, 2018) 26 33 $ 2,027 $ 2,188 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Assets.. | |
Schedule of other assets | September 30, December 31, ($ in millions) 2019 2018 Long-term deferred tax assets $ 203 $ 237 Long-term pension assets 561 559 Investments in affiliates 282 302 Right-of-use operating lease assets 242 — Other 402 311 $ 1,690 $ 1,409 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Schedule of components of lease expense | Three Months Ended Nine Months Ended ($ in millions) September 30, 2019 September 30, 2019 Operating lease expense $ (17) $ (50) Variable lease expense 3 (7) Sublease income 1 3 Net lease expense $ (13) $ (54) |
Schedule of supplemental cash flow information related to leases | Three Months Ended Nine Months Ended ($ in millions) September 30, 2019 September 30, 2019 Cash paid for amounts included in the measurements of lease liabilities - Operating cash outflows for operating leases $ (11) $ (47) ROU assets obtained in exchange for operating lease obligations 18 41 |
Schedule of supplemental balance sheet information related to leases | ($ in millions) Balance Sheet Location September 30, 2019 Operating lease ROU asset Other assets $ 242 Current operating lease liabilities Other current liabilities 56 Noncurrent operating lease liabilities Other liabilities 186 |
Schedule of weighted average remaining lease term and weighted average discount rate of operating leases | September 30, 2019 Weighted average remaining lease term in years 10 Weighted average discount rate (%) 4.3 |
Schedule of the maturities of lease liabilities | ($ in millions) Operating Leases 2019 (excluding the nine months ended September 30, 2019) $ 15 2020 55 2021 46 2022 39 2023 30 Thereafter 108 Future value of lease liabilities 293 Less: Imputed interest (51) Present value of lease liabilities $ 242 |
Schedule of noncancelable operating leases | ($ in millions) 2019 $ 66 2020 52 2021 41 2022 34 2023 25 Thereafter 87 Total future lease payments $ 305 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt | |
Schedule of long-term debt | September 30, December 31, ($ in millions) 2019 2018 Senior Notes 5.25% due July 2025 $ 1,000 $ 1,000 4.375% due December 2020 1,000 1,000 4.00% due November 2023 1,000 1,000 4.375%, euro denominated, due December 2023 763 803 5.00% due March 2022 750 750 4.875% due March 2026 750 750 3.50%, euro denominated, due December 2020 436 459 Senior Credit Facility (at variable rates) Term A loan, due March 2024 788 797 U.S. dollar revolver due March 2024 at variable rate 205 — Other (including debt issuance costs) (41) (41) 6,651 6,518 Less: Current portion of long-term debt (28) (8) $ 6,623 $ 6,510 |
Employee Benefit Obligations (T
Employee Benefit Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Employee Benefit Obligations | |
Schedule of employee benefit obligations | September 30, December 31, ($ in millions) 2019 2018 Underfunded defined benefit pension liabilities $ 834 $ 954 Less: Current portion (24) (25) Long-term defined benefit pension liabilities 810 929 Long-term retiree medical liabilities 157 157 Deferred compensation plans 377 291 Other 39 78 $ 1,383 $ 1,455 |
Components of net periodic benefit cost | Three Months Ended September 30, 2019 2018 ($ in millions) U.S. Foreign Total U.S. Foreign Total Ball-sponsored plans: Service cost $ 13 $ 2 $ 15 $ 13 $ 3 $ 16 Interest cost 26 17 43 25 18 43 Expected return on plan assets (29) (26) (55) (27) (27) (54) Amortization of prior service cost 1 — 1 — — — Recognized net actuarial loss 5 1 6 9 2 11 Settlement losses — 8 (a) 8 14 (a) — 14 Total net periodic benefit cost $ 16 $ 2 $ 18 $ 34 $ (4) $ 30 (a) Includes settlement losses related to the purchase of non-participating annuities, plant shutdown benefits and other settlements that occur in the normal course of business, which have been recorded in business consolidation and other activities. Nine Months Ended September 30, 2019 2018 ($ in millions) U.S. Foreign Total U.S. Foreign Total Ball-sponsored plans: Service cost $ 37 $ 8 $ 45 $ 40 $ 11 $ 51 Interest cost 76 53 129 73 54 127 Expected return on plan assets (86) (81) (167) (82) (81) (163) Amortization of prior service cost 1 2 3 1 — 1 Recognized net actuarial loss 16 3 19 28 4 32 Settlement losses — 8 (a) 8 14 (a) — 14 Net periodic benefit cost for Ball sponsored plans 44 (7) 37 74 (12) 62 Net periodic benefit cost for multi-employer plans — — — 1 — 1 Total net periodic benefit cost $ 44 $ (7) $ 37 $ 75 $ (12) $ 63 (a) Includes settlement losses related to the purchase of non-participating annuities, plant shutdown benefits and other settlements that occur in the normal course of business, which have been recorded in business consolidation and other activities. |
Equity and Accumulated Other _2
Equity and Accumulated Other Comprehensive Earnings (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity and Accumulated Other Comprehensive Earnings | |
Schedule of company's equity activity | Ball Corporation and Subsidiaries Common Stock Treasury Stock Accumulated Other Number of Number of Retained Comprehensive Noncontrolling Total ($ in millions; share amounts in thousands) Shares Amount Shares Amount Earnings Earnings (Loss) Interest Equity Balance at June 30, 2019 675,463 $ 1,172 (343,623) $ (2,566) $ 5,651 $ (797) $ 104 $ 3,564 Net earnings — — — — 92 — — 92 Other comprehensive earnings (loss), net of tax — — — — — 36 — 36 Currency translation recognized in earnings as a result of the transfer of the Argentina steel aerosol business to held for sale — — — — — 45 — 45 Common dividends, net of tax benefits — — — — (49) — — (49) Treasury stock purchases — — (3,296) (232) — — — (232) Treasury shares reissued — — 64 7 — — — 7 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 588 7 — — — — — 7 Other activity — (2) — 1 — — (4) (5) Balance at September 30, 2019 676,051 $ 1,177 (346,855) $ (2,790) $ 5,694 $ (716) $ 100 $ 3,465 Ball Corporation and Subsidiaries Common Stock Treasury Stock Accumulated Other Number of Number of Retained Comprehensive Noncontrolling Total ($ in millions; share amounts in thousands) Shares Amount Shares Amount Earnings Earnings (Loss) Interest Equity Balance at June 30, 2018 672,070 $ 1,120 (325,459) $ (1,663) $ 5,199 $ (767) $ 106 $ 3,995 Net earnings — — — — 59 — — 59 Other comprehensive earnings (loss), net of tax — — — — — (33) — (33) Common dividends, net of tax benefits — — — — (34) — — (34) Treasury stock purchases — — (6,731) (269) — — — (269) Treasury shares reissued — — 172 7 — — — 7 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 629 21 — — — — — 21 Other activity — 1 — (1) — — (1) (1) Balance at September 30, 2018 672,699 $ 1,142 (332,018) $ (1,926) $ 5,224 $ (800) $ 105 $ 3,745 Ball Corporation and Subsidiaries Common Stock Treasury Stock Accumulated Other Number of Number of Retained Comprehensive Noncontrolling Total ($ in millions; share amounts in thousands) Shares Amount Shares Amount Earnings Earnings (Loss) Interest Equity Balance at December 31, 2018 673,237 $ 1,157 (337,979) $ (2,205) $ 5,341 $ (835) $ 104 $ 3,562 Net earnings — — — — 406 — — 406 Other comprehensive earnings (loss), net of tax — — — — — 153 — 153 Currency translation recognized in earnings as a result of the transfer of the Argentina steel aerosol business to held for sale — — — — — 45 — 45 Reclassification of stranded tax effects — — — — 79 (79) — — Common dividends, net of tax benefits — — — (133) — — (133) Treasury stock purchases — — (9,470) (612) — — — (612) Treasury shares reissued — — 594 19 — — — 19 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 2,814 22 — — — — — 22 Other activity — (2) — 8 1 — (4) 3 Balance at September 30, 2019 676,051 $ 1,177 (346,855) $ (2,790) $ 5,694 $ (716) $ 100 $ 3,465 Ball Corporation and Subsidiaries Common Stock Treasury Stock Accumulated Other Number of Number of Retained Comprehensive Noncontrolling Total ($ in millions; share amounts in thousands) Shares Amount Shares Amount Earnings Earnings (Loss) Interest Equity Balance at December 31, 2017, as adjusted 670,576 $ 1,084 (320,695) $ (1,474) $ 5,024 $ (655) $ 105 $ 4,084 Net earnings — — — — 303 — 1 304 Other comprehensive earnings (loss), net of tax — — — — — (144) — (144) Common dividends, net of tax benefits — — — — (104) — — (104) Treasury stock purchases — — (11,990) (471) — — — (471) Treasury shares reissued — — 667 18 — — — 18 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 2,123 57 — — — — — 57 Other activity — 1 — 1 1 (1) (1) 1 Balance at September 30, 2018 672,699 $ 1,142 (332,018) $ (1,926) $ 5,224 $ (800) $ 105 $ 3,745 |
Schedule of activity related to accumulated other comprehensive earnings (loss) | ($ in millions) Foreign Currency Translation (Net of Tax) Pension and Other Postretirement Benefits (Net of Tax) Derivatives Designated as Hedges Accumulated Other Comprehensive Earnings (Loss) Balance at December 31, 2018 $ (504) $ (277) $ (54) $ (835) Other comprehensive earnings (loss) before reclassifications 88 4 68 160 Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings — 24 (31) (7) Currency translation recognized in earnings from the transfer of the Argentina steel aerosol business to held for sale 45 — — 45 Stranded tax effects reclassified into retained earnings — (76) (3) (79) Balance at September 30, 2019 $ (371) $ (325) $ (20) $ (716) |
Information related to amounts reclassified into net earnings from accumulated other comprehensive earnings (loss) | Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2019 2018 2019 2018 Gains (losses) on cash flow hedges: Commodity contracts recorded in net sales $ 6 $ 2 $ 12 $ (2) Commodity contracts recorded in cost of sales (11) 19 (27) 47 Currency exchange contracts recorded in selling, general and administrative 6 — 5 1 Cross-currency swaps recorded in selling, general and administrative 32 7 41 37 Cross-currency swaps recorded in interest expense 3 4 11 10 Interest rate contracts recorded in interest expense (1) — (1) — Total before tax effect 35 32 41 93 Tax benefit (expense) on amounts reclassified into earnings (7) (8) (10) (21) Recognized gain (loss), net of tax $ 28 $ 24 $ 31 $ 72 Amortization of pension and other postretirement benefits: (a) Prior service income (expense) $ (1) $ — $ (1) $ — Actuarial gains (losses) (4) (1) (14) (20) Effect of pension settlements (b) (8) (14) (8) (14) Total before tax effect (13) (15) (23) (34) Tax benefit (expense) on amounts reclassified into earnings (4) 4 (1) 9 Recognized gain (loss), net of tax $ (17) $ (11) $ (24) $ (25) (a) The pension components are included in the computation of net periodic benefit cost disclosed in Note 17. (b) 2019 and 2018 amounts include pretax settlement losses related to the purchase of non-participating group annuity contracts. Refer to Note 17 for further details. |
Earnings and Dividends Per Sh_2
Earnings and Dividends Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings and Dividends Per Share | |
Schedule of earnings per share | Three Months Ended September 30, Nine Months Ended September 30, ($ in millions, except per share amounts; shares in thousands) 2019 2018 2019 2018 Net earnings attributable to Ball Corporation $ 92 $ 59 $ 406 $ 303 Basic weighted average common shares 331,148 342,982 332,726 347,113 Effect of dilutive securities 9,484 6,727 8,976 6,642 Weighted average shares applicable to diluted earnings per share 340,632 349,709 341,702 353,755 Per basic share $ 0.28 $ 0.17 $ 1.22 $ 0.87 Per diluted share $ 0.27 $ 0.17 $ 1.19 $ 0.86 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Financial Instruments and Risk Management | |
Schedule of fair value of derivative instruments | September 30, 2019 ($ in millions) Balance Sheet Location Derivatives Derivatives not Total Assets: Commodity contracts $ 10 $ — $ 10 Foreign currency contracts 2 48 50 Cross-currency and other contracts 1 — 1 Total current derivative contracts Other current assets $ 13 $ 48 $ 61 Foreign currency contracts $ 31 $ — $ 31 Interest rate and other contracts 3 — 3 Total noncurrent derivative contracts Other noncurrent assets $ 34 $ — $ 34 Liabilities: Commodity contracts $ 35 $ — $ 35 Foreign currency contracts — 1 1 Cross-currency and other contracts 1 7 8 Total current derivative contracts Other current liabilities $ 36 $ 8 $ 44 Commodity contracts $ 3 $ — $ 3 Total noncurrent derivative contracts Other noncurrent liabilities $ 3 $ — $ 3 December 31, 2018 Derivatives Derivatives not Total Assets: Commodity contracts $ 9 $ 1 $ 10 Foreign currency contracts — 21 21 Cross-currency and other contracts — 5 5 Total current derivative contracts Other current assets $ 9 $ 27 $ 36 Liabilities: Commodity contracts $ 42 $ 11 $ 53 Foreign currency contracts 2 4 6 Cross-currency and other contracts 1 2 3 Total current derivative contracts Other current liabilities $ 45 $ 17 $ 62 Commodity contracts $ 2 $ — $ 2 Cross-currency and other contracts 62 — 62 Total noncurrent derivative contracts Other noncurrent liabilities $ 64 $ — $ 64 |
Schedule of impact on earnings from derivative instruments | Three Months Ended September 30, 2019 2018 ($ in millions) Location of Gain (Loss) Cash Flow Gain (Loss) on Cash Flow Gain (Loss) on Commodity contracts - manage exposure to customer pricing Net sales $ 6 $ — $ 2 $ — Commodity contracts - manage exposure to supplier pricing Cost of sales (11) (1) 19 2 Interest rate contracts - manage exposure for outstanding debt Interest expense (1) — — — Foreign currency contracts - manage currency exposure Selling, general and administrative 6 90 — 16 Cross-currency swaps - manage intercompany currency exposure Selling, general and administrative 32 — 7 — Cross-currency swaps - manage intercompany currency exposure Interest expense 3 — 4 — Equity contracts Selling, general and administrative — 7 — 21 Total $ 35 $ 96 $ 32 $ 39 Nine Months Ended September 30, 2019 2018 ($ in millions) Location of Gain (Loss) Cash Flow Gain (Loss) on Cash Flow Gain (Loss) on Commodity contracts - manage exposure to customer pricing Net sales $ 12 $ — $ (2) $ 1 Commodity contracts - manage exposure to supplier pricing Cost of sales (27) 2 47 6 Interest rate contracts - manage exposure for outstanding debt Interest expense (1) — — — Foreign currency contracts - manage currency exposure Selling, general and administrative 5 133 1 73 Cross-currency swaps - manage intercompany currency exposure Selling, general and administrative 41 — 37 — Cross-currency swaps - manage intercompany currency exposure Interest expense 11 — 10 — Equity contracts Selling, general and administrative — 70 — 14 Total $ 41 $ 205 $ 93 $ 94 |
Schedule of changes in accumulated other comprehensive earnings (loss) for effective derivatives | Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2019 2018 2019 2018 Amounts reclassified into earnings: Commodity contracts $ 5 $ (21) $ 15 $ (45) Cross-currency swap contracts (35) (11) (52) (47) Interest rate contracts 1 — 1 — Currency exchange contracts (6) — (5) (1) Change in fair value of cash flow hedges: Commodity contracts (5) (11) (10) 1 Interest rate contracts (1) — (1) — Cross-currency swap contracts 41 13 81 45 Currency exchange contracts 14 1 18 (2) Foreign currency and tax impacts (2) 6 (10) 12 Stranded tax effects reclassified into retained earnings: Commodity contracts — — 2 — Cross-currency swap contracts — — (5) — $ 12 $ (23) $ 34 $ (37) |
Subsidiary Guarantees of Debt (
Subsidiary Guarantees of Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Subsidiary Guarantees of Debt | |
Schedule of Condensed Consolidating Statement of Earnings | Unaudited Condensed Consolidating Statement of Earnings Three Months Ended September 30, 2019 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Net sales $ — $ 1,680 $ 1,480 $ (207) $ 2,953 Cost and expenses Cost of sales (excluding depreciation and amortization) — (1,443) (1,127) 207 (2,363) Depreciation and amortization (2) (51) (116) — (169) Selling, general and administrative 41 (84) (47) — (90) Business consolidation and other activities (7) (2) (124) — (133) Equity in results of subsidiaries 80 (37) — (43) — Intercompany 49 (24) (25) — — 161 (1,641) (1,439) 164 (2,755) Earnings (loss) before interest and taxes 161 39 41 (43) 198 Interest expense (80) 1 — — (79) Debt refinancing and other costs — — — — — Total interest expense (80) 1 — — (79) Earnings (loss) before taxes 81 40 41 (43) 119 Tax (provision) benefit 11 (13) (30) — (32) Equity in results of affiliates, net of tax — 1 4 — 5 Net earnings (loss) 92 28 15 (43) 92 Less net earnings attributable to noncontrolling interests — — — — — Net earnings (loss) attributable to Ball Corporation $ 92 $ 28 $ 15 $ (43) $ 92 Comprehensive earnings (loss) attributable to Ball Corporation $ 173 $ 84 $ 89 $ (173) $ 173 Unaudited Condensed Consolidating Statement of Earnings Three Months Ended September 30, 2018 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Net sales $ — $ 1,666 $ 1,481 $ (201) $ 2,946 Cost and expenses Cost of sales (excluding depreciation and amortization) — (1,405) (1,158) 201 (2,362) Depreciation and amortization (1) (49) (121) — (171) Selling, general and administrative (244) 179 (48) — (113) Business consolidation and other activities (53) 13 8 — (32) Equity in results of subsidiaries 369 8 — (377) — Intercompany 52 (6) (46) — — 123 (1,260) (1,365) (176) (2,678) Earnings (loss) before interest and taxes 123 406 116 (377) 268 Interest expense (79) 3 — — (76) Debt refinancing and other costs — — — — — Total interest expense (79) 3 — — (76) Earnings (loss) before taxes 44 409 116 (377) 192 Tax (provision) benefit 15 (103) (52) — (140) Equity in results of affiliates, net of tax — 3 4 — 7 Net earnings (loss) 59 309 68 (377) 59 Less net earnings attributable to noncontrolling interests — — — — — Net earnings (loss) attributable to Ball Corporation $ 59 $ 309 $ 68 $ (377) $ 59 Comprehensive earnings (loss) attributable to Ball Corporation $ 26 $ 313 $ 8 $ (321) $ 26 Unaudited Condensed Consolidating Statement of Earnings For the Nine Months Ended September 30, 2019 ($ in millions) Ball Guarantor Non-Guarantor Subsidiaries Eliminating Consolidated Net sales $ — $ 4,966 $ 4,408 $ (619) $ 8,755 Cost and expenses Cost of sales (excluding depreciation and amortization) — (4,295) (3,368) 619 (7,044) Depreciation and amortization (4) (150) (356) — (510) Selling, general and administrative (20) (172) (136) — (328) Business consolidation and other activities (23) (9) (115) — (147) Equity in results of subsidiaries 467 108 — (575) — Intercompany 176 (88) (88) — — 596 (4,606) (4,063) 44 (8,029) Earnings (loss) before interest and taxes 596 360 345 (575) 726 Interest expense (240) 4 (1) — (237) Debt refinancing and other costs (4) — — — (4) Total interest expense (244) 4 (1) — (241) Earnings (loss) before taxes 352 364 344 (575) 485 Tax (provision) benefit 54 (52) (75) — (73) Equity in results of affiliates, net of tax — (12) 6 — (6) Net earnings 406 300 275 (575) 406 Less net earnings attributable to noncontrolling interests — — — — — Net earnings attributable to Ball Corporation $ 406 $ 300 $ 275 $ (575) $ 406 Comprehensive earnings (loss) attributable to Ball Corporation $ 604 $ 506 $ 442 $ (948) $ 604 Unaudited Condensed Consolidating Statement of Earnings For the Nine Months Ended September 30, 2018 ($ in millions) Ball Guarantor Non-Guarantor Subsidiaries Eliminating Consolidated Net sales $ — $ 5,003 $ 4,428 $ (599) $ 8,832 Cost and expenses Cost of sales (excluding depreciation and amortization) — (4,235) (3,447) 599 (7,083) Depreciation and amortization (4) (153) (372) — (529) Selling, general and administrative (278) 65 (139) — (352) Business consolidation and other activities (70) (41) (20) — (131) Equity in results of subsidiaries 634 61 — (695) — Intercompany 228 (158) (70) — — 510 (4,461) (4,048) (96) (8,095) Earnings (loss) before interest and taxes 510 542 380 (695) 737 Interest expense (235) 10 (1) — (226) Debt refinancing and other costs (1) — — — (1) Total interest expense (236) 10 (1) — (227) Earnings (loss) before taxes 274 552 379 (695) 510 Tax (provision) benefit 29 (135) (114) — (220) Equity in results of affiliates, net of tax — 1 13 — 14 Net earnings 303 418 278 (695) 304 Less net earnings attributable to noncontrolling interests — — (1) — (1) Net earnings attributable to Ball Corporation $ 303 $ 418 $ 277 $ (695) $ 303 Comprehensive earnings (loss) attributable to Ball Corporation $ 159 $ 309 $ 105 $ (414) $ 159 |
Schedule of Condensed Consolidating Balance Sheet | Unaudited Condensed Consolidating Balance Sheet September 30, 2019 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Assets Current assets Cash and cash equivalents $ 7 $ — $ 476 $ — $ 483 Receivables, net 9 594 1,354 — 1,957 Intercompany receivables 103 237 1,711 (2,051) — Inventories, net — 506 674 — 1,180 Other current assets 37 39 133 — 209 Total current assets 156 1,376 4,348 (2,051) 3,829 Noncurrent assets Property, plant and equipment, net 34 1,403 2,883 — 4,320 Investment in subsidiaries 11,678 2,589 (99) (14,168) — Goodwill — 1,191 3,180 — 4,371 Intangible assets, net 18 383 1,626 — 2,027 Other assets 315 299 1,076 — 1,690 Total assets $ 12,201 $ 7,241 $ 13,014 $ (16,219) $ 16,237 Liabilities and Equity Current liabilities Short-term debt and current portion of long-term debt $ 239 $ — $ 122 $ — $ 361 Accounts payable 17 949 1,692 — 2,658 Intercompany payables 2,379 123 156 (2,658) — Accrued employee costs 49 119 88 — 256 Other current liabilities 136 142 220 — 498 Total current liabilities 2,820 1,333 2,278 (2,658) 3,773 Noncurrent liabilities Long-term debt 6,620 — 3 — 6,623 Employee benefit obligations 822 293 268 — 1,383 Intercompany long-term notes (1,263) (1,764) 2,420 607 — Deferred taxes (247) 247 602 — 602 Long-term deferred tax and other liabilities 84 128 179 — 391 Total liabilities 8,836 237 5,750 (2,051) 12,772 Common stock 1,177 2,523 3,900 (6,423) 1,177 Preferred stock — — 5 (5) — Retained earnings 5,694 4,939 3,553 (8,492) 5,694 Accumulated other comprehensive earnings (loss) (716) (458) (294) 752 (716) Treasury stock, at cost (2,790) — — — (2,790) Total Ball Corporation equity 3,365 7,004 7,164 (14,168) 3,365 Noncontrolling interests — — 100 — 100 Total equity 3,365 7,004 7,264 (14,168) 3,465 Total liabilities and equity $ 12,201 $ 7,241 $ 13,014 $ (16,219) $ 16,237 Unaudited Condensed Consolidating Balance Sheet December 31, 2018 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Assets Current assets Cash and cash equivalents $ 4 $ — $ 717 $ — $ 721 Receivables, net 21 613 1,168 — 1,802 Intercompany receivables 66 495 1,657 (2,218) — Inventories, net — 527 744 — 1,271 Other current assets 32 35 79 — 146 Total current assets 123 1,670 4,365 (2,218) 3,940 Noncurrent assets Property, plant and equipment, net 24 1,378 3,140 — 4,542 Investment in subsidiaries 11,145 3,779 (99) (14,825) — Goodwill — 1,191 3,284 — 4,475 Intangible assets, net 18 409 1,761 — 2,188 Other assets 213 215 981 — 1,409 Total assets $ 11,523 $ 8,642 $ 13,432 $ (17,043) $ 16,554 Liabilities and Equity Current liabilities Short-term debt and current portion of long-term debt $ 173 $ — $ 46 $ — $ 219 Accounts payable 50 1,178 1,867 — 3,095 Intercompany payables 2,310 49 466 (2,825) — Accrued employee costs 39 144 106 — 289 Other current liabilities 153 119 220 — 492 Total current liabilities 2,725 1,490 2,705 (2,825) 4,095 Noncurrent liabilities Long-term debt 6,504 — 6 — 6,510 Employee benefit obligations 871 286 298 — 1,455 Intercompany long-term notes (1,977) 3 1,368 606 — Deferred taxes (172) 169 648 — 645 Other liabilities 114 45 128 — 287 Total liabilities 8,065 1,993 5,153 (2,219) 12,992 Common stock 1,157 2,523 5,314 (7,837) 1,157 Preferred stock — — 5 (5) — Retained earnings 5,341 4,712 3,316 (8,028) 5,341 Accumulated other comprehensive earnings (loss) (835) (586) (460) 1,046 (835) Treasury stock, at cost (2,205) — — — (2,205) Total Ball Corporation equity 3,458 6,649 8,175 (14,824) 3,458 Noncontrolling interests — — 104 — 104 Total equity 3,458 6,649 8,279 (14,824) 3,562 Total liabilities and equity $ 11,523 $ 8,642 $ 13,432 $ (17,043) $ 16,554 |
Schedule of Condensed Consolidating Statement of Cash Flows | Unaudited Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2019 ($ in millions) Ball Guarantor Non-Guarantor Consolidated Cash provided by (used in) operating activities $ (332) $ 256 $ 732 $ 656 Cash flows from investing activities Capital expenditures (12) (186) (227) (425) Proceeds from dispositions, net of cash sold — — (50) (50) Other, net (2) 10 18 26 Cash provided by (used in) investing activities (14) (176) (259) (449) Cash flows from financing activities Long-term borrowings 1,095 — 3 1,098 Repayments of long-term borrowings (900) — (6) (906) Net change in short-term borrowings 47 — 84 131 Proceeds from issuances of common stock, net of shares used for taxes 16 — — 16 Acquisitions of treasury stock (614) — — (614) Common stock dividends (133) — — (133) Intercompany 849 (80) (769) — Other, net (10) — — (10) Cash provided by (used in) financing activities 350 (80) (688) (418) Effect of exchange rate changes on cash — — (20) (20) Change in cash, cash equivalents and restricted cash 4 — (235) (231) Cash, cash equivalents and restricted cash – beginning of period 3 — 725 728 Cash, cash equivalents and restricted cash – end of period $ 7 $ — $ 490 $ 497 Unaudited Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2018 ($ in millions) Ball Guarantor Non-Guarantor Consolidated Cash provided by (used in) operating activities $ (103) $ 148 $ 982 $ 1,027 Cash flows from investing activities Capital expenditures (5) (356) (255) (616) Proceeds from dispositions, net of cash sold (53) 604 — 551 Other, net (1) 18 33 50 Cash provided by (used in) investing activities (59) 266 (222) (15) Cash flows from financing activities Long-term borrowings 1,475 — — 1,475 Repayments of long-term borrowings (1,525) — (6) (1,531) Net change in short-term borrowings (138) — (51) (189) Proceeds from issuances of common stock, net of shares used for taxes 25 — — 25 Acquisitions of treasury stock (464) — — (464) Common stock dividends (104) — — (104) Intercompany 905 (413) (492) — Other, net (12) (1) — (13) Cash provided by (used in) financing activities 162 (414) (549) (801) Effect of exchange rate changes on cash — — (59) (59) Change in cash, cash equivalents and restricted cash — — 152 152 Cash, cash equivalents and restricted cash – beginning of period 5 — 454 459 Cash, cash equivalents and restricted cash – end of period $ 5 $ — $ 606 $ 611 |
Accounting Pronouncements - Lea
Accounting Pronouncements - Leases (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Assets [Abstract] | |||
Other current assets | $ 139 | $ 209 | $ 146 |
Operating lease right-of-use assets | $ 244 | $ 242 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsMember | us-gaap:OtherAssetsMember | |
Other assets | $ 1,384 | ||
Liabilities [Abstract] | |||
Other current liabilities | 489 | $ 498 | 492 |
Current operating lease liabilities | $ 53 | $ 56 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherCurrentLiabilitiesMember | us-gaap:OtherCurrentLiabilitiesMember | |
Other liabilities | $ 273 | $ 391 | 287 |
Noncurrent operating lease liabilities | $ 182 | $ 186 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherNoncurrentLiabilitiesMember | us-gaap:OtherLiabilitiesMember | |
Effect of Tax Cuts and Jobs Act [Abstract] | |||
Reclassification of stranded tax effects | $ 79 | ||
As Previously reported | |||
Assets [Abstract] | |||
Other current assets | 140 | ||
Other assets | 1,409 | ||
Liabilities [Abstract] | |||
Other current liabilities | 492 | ||
Other liabilities | $ 287 | ||
ASU 2016-02 | |||
Lessee Disclosure [Abstract] | |||
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected [Fixed List] | Modified Retrospective | ||
New Accounting Pronouncement or Change in Accounting Principle, Prior Period Not Restated [true false] | true | ||
Practical expedient package adopted | true | ||
Land easement practical expedient | true | ||
Impact on opening retained earnings balance | $ 0 | ||
ASU 2016-02 | Adjustments Due to Adoption | |||
Assets [Abstract] | |||
Other current assets | (1) | ||
Operating lease right-of-use assets | 244 | ||
Other assets | (25) | ||
Liabilities [Abstract] | |||
Other current liabilities | (3) | ||
Current operating lease liabilities | 53 | ||
Other liabilities | (14) | ||
Noncurrent operating lease liabilities | $ 182 |
Business Segment Information -
Business Segment Information - Summary of Business (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Business Segment Information | ||||
Number of reportable segments | segment | 4 | |||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Net sales | $ 2,953 | $ 2,946 | $ 8,755 | $ 8,832 |
Reconciling items | ||||
Other | 27 | 6 | 38 | 40 |
Business consolidation and other activities | (133) | (32) | (147) | (131) |
Amortization of acquired Rexam intangibles | (46) | (50) | (142) | (154) |
Earnings before interest and taxes | 198 | 268 | 726 | 737 |
Interest expense | (79) | (76) | (237) | (226) |
Debt refinancing and other costs | (4) | (1) | ||
Total interest expense | (79) | (76) | (241) | (227) |
Earnings before taxes | 119 | 192 | 485 | 510 |
Undistributed corporate expenses | 5 | 21 | 44 | 64 |
Operating Segments | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Net sales | 2,695 | 2,594 | 7,990 | 7,574 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Reportable segment comparable operating earnings | 342 | 334 | 953 | 952 |
Operating Segments | Beverage packaging, North And Central America | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Net sales | 1,230 | 1,237 | 3,647 | 3,513 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Reportable segment comparable operating earnings | 157 | 153 | 416 | 423 |
Reconciling items | ||||
Business consolidation and other activities | (2) | (14) | (8) | (16) |
Operating Segments | Beverage packaging, South America | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Net sales | 392 | 391 | 1,210 | 1,229 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Reportable segment comparable operating earnings | 60 | 71 | 193 | 235 |
Reconciling items | ||||
Business consolidation and other activities | (14) | 12 | 22 | 11 |
Operating Segments | Beverage packaging, Europe | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Net sales | 699 | 683 | 2,052 | 1,995 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Reportable segment comparable operating earnings | 90 | 84 | 241 | 219 |
Reconciling items | ||||
Business consolidation and other activities | (9) | (3) | (24) | (17) |
Operating Segments | Aerospace | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Net sales | 374 | 283 | 1,081 | 837 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Reportable segment comparable operating earnings | 35 | 26 | 103 | 75 |
Other | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Net sales | 258 | 352 | 765 | 1,258 |
Reconciling items | ||||
Business consolidation and other activities | (108) | (27) | (137) | (109) |
Rexam | ||||
Reconciling items | ||||
Amortization of acquired Rexam intangibles | $ (38) | $ (40) | $ (118) | $ (124) |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Dispositions (Details) $ in Millions | Jul. 31, 2018USD ($)Plant | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) |
Disposition | |||
Charge in earnings for translation losses | $ (45) | $ (45) | |
Steel Aerosol Packaging Business In Argentina [Member] | Held-for-sale | |||
Disposition | |||
Impairment of assets held for sale | 7 | ||
Assets held for sale | 16 | 16 | |
Liabilities held for sale | 13 | 13 | |
Charge in earnings for translation losses | 45 | ||
Beverage Packaging China | Disposal group, not discontinued operations | |||
Disposition | |||
Loss on sale of disposal group | 45 | ||
Beverage Packaging China | Disposal group, not discontinued operations | Scenario, Plan [Member] | |||
Disposition | |||
Consideration for the sale of business | $ 213 | $ 213 | |
US steel food and steel aerosol packaging | Held-for-sale | |||
Disposition | |||
Consideration for the sale of business | $ 600 | ||
Loss on sale of disposal group | $ (41) | ||
Number of plants sold | Plant | 9 | ||
Ball Metalpack | |||
Disposition | |||
Percentage of ownership in a joint venture | 49.00% |
Revenue from Contracts With C_3
Revenue from Contracts With Customers - Disaggregation (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Number of reportable segments | segment | 4 | |||
Total net sales | $ 2,953 | $ 2,946 | $ 8,755 | $ 8,832 |
Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 555 | 665 | 1,659 | 2,082 |
Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 2,398 | $ 2,281 | $ 7,096 | $ 6,750 |
Revenue from Contracts With C_4
Revenue from Contracts With Customers - Contract balances (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Contract with Customer, Asset and Liability [Abstract] | ||||||
Contract Liabilities (Current) | $ 57 | $ 57 | $ 45 | $ 45 | ||
Contract Liabilities (Noncurrent) | 8 | 8 | 8 | |||
Increase (decrease) current contract liabilities | 12 | |||||
Increase (decrease) noncurrent contract liabilities | $ 8 | |||||
Total increase (decrease) in contract liabilities | 12 | |||||
Cash received on contract liabilities | 171 | |||||
Revenue recognized included in contract liabilities current | 159 | |||||
Revenue recognized from opening balance of contract liabilities | 45 | |||||
Revenue recognized from obligations satisfied or partially satisfied in prior periods | $ 4 | $ 3 | $ 10 | $ 8 |
Revenue from Contracts With C_5
Revenue from Contracts With Customers - Practical Expedients (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Practical expedients | |
Practical expedient - nondisclosure of transaction price for future performance obligations | true |
Revenue from Contracts With C_6
Revenue from Contracts With Customers - Performance obligations (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Sales expected to be recognized on multi-year contracts in place as of the end of the period | $ 2,168 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Period in which remaining performance obligations expect to be satisfied and revenue recognized | 12 months |
Sales expected to be recognized on multi-year contracts in place as of the end of the period | $ 1,300 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Period in which remaining performance obligations expect to be satisfied and revenue recognized | 0 months |
Sales expected to be recognized on multi-year contracts in place as of the end of the period | $ 868 |
Business Consolidation and Ot_3
Business Consolidation and Other Activities (Details) - USD ($) $ in Millions | Jul. 31, 2018 | Jul. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Business consolidation and other activities | |||||||
Business consolidation and other activities | $ (133) | $ (32) | $ (147) | $ (131) | |||
Charge in earnings for translation losses | (45) | (45) | |||||
Settlement loss | $ 8 | $ 14 | |||||
US steel food and steel aerosol packaging | Held-for-sale | |||||||
Business consolidation and other activities | |||||||
Loss on sale of disposal group | $ 41 | ||||||
Steel Aerosol Packaging Business In Argentina [Member] | Held-for-sale | |||||||
Business consolidation and other activities | |||||||
Impairment of assets held for sale | 7 | ||||||
Charge in earnings for translation losses | 45 | ||||||
Operating Segments | Beverage packaging, North And Central America | |||||||
Business consolidation and other activities | |||||||
Business consolidation and other activities | (2) | (14) | (8) | (16) | |||
Individually insignificant activities | 1 | 5 | 1 | 10 | |||
Operating Segments | Beverage packaging, North And Central America | Reidsville, North Carolina facility | |||||||
Business consolidation and other activities | |||||||
Charges related to facilities closure | 2 | ||||||
Operating Segments | Beverage packaging, North And Central America | Birmingham, Alabama, Chatsworth, California And Longview, Texas facilities | |||||||
Business consolidation and other activities | |||||||
Charges related to facilities closure | 1 | 7 | |||||
Reversal of previously recorded expenses related to facilities closure | 5 | ||||||
Operating Segments | Beverage packaging, North And Central America | Birmingham, Alabama, Chatsworth, California And Longview, Texas facilities | Employee Severance And Benefits Facility Shutdown Costs Asset Impairment Accelerated Depreciation And Other Costs | |||||||
Business consolidation and other activities | |||||||
Business consolidation and other activities | (9) | (9) | |||||
Operating Segments | Beverage packaging, South America | |||||||
Business consolidation and other activities | |||||||
Business consolidation and other activities | (14) | 12 | 22 | 11 | |||
Individually insignificant activities | 1 | 4 | 5 | 5 | |||
Gain related to indirect tax contingencies | 16 | 56 | |||||
Operating Segments | Beverage packaging, South America | Facility Shutdown Costs Asset Impairment Accelerated Depreciation And Other Costs | |||||||
Business consolidation and other activities | |||||||
Charges related to facilities closure | 13 | 29 | |||||
Operating Segments | Beverage packaging, Europe | |||||||
Business consolidation and other activities | |||||||
Business consolidation and other activities | (9) | (3) | (24) | (17) | |||
Individually insignificant activities | 3 | 1 | 7 | 2 | |||
Operating Segments | Beverage packaging, Europe | Employee Benefits Severance Facility Shutdown Costs And Other Costs | |||||||
Business consolidation and other activities | |||||||
Charges related to facilities closure | 6 | 17 | |||||
Operating Segments | Beverage packaging, Europe | Recklinghausen, Germany facility | Employee Severance And Benefits | |||||||
Business consolidation and other activities | |||||||
Charges related to facilities closure | 2 | 15 | |||||
Other | |||||||
Business consolidation and other activities | |||||||
Business consolidation and other activities | (108) | (27) | (137) | (109) | |||
Individually insignificant activities | 5 | 6 | 11 | 24 | |||
Settlement loss | 8 | 14 | 8 | 14 | |||
Other | Employee Severance and Benefits, Accelerated Depreciation and Inventory Impairment | |||||||
Business consolidation and other activities | |||||||
Charges related to manufacturing cost rationalization | 4 | ||||||
Other | Beverage packaging China | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||
Business consolidation and other activities | |||||||
Loss on sale of disposal group | (45) | (45) | |||||
Professional services and other costs | 16 | ||||||
Other | US steel food and steel aerosol packaging | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||
Business consolidation and other activities | |||||||
Reversal of previously recorded expenses related to facilities closure | 3 | ||||||
Loss on sale of disposal group | (38) | ||||||
Professional services and other costs | 6 | 10 | |||||
Other | Steel Aerosol Packaging Business In Argentina [Member] | Held-for-sale | |||||||
Business consolidation and other activities | |||||||
Impairment of assets held for sale | (7) | (7) | |||||
Charge in earnings for translation losses | 45 | 45 | |||||
Other | Rexam | |||||||
Business consolidation and other activities | |||||||
Reversal of previously recorded expenses related to facilities closure | $ 2 | ||||||
Compensation arrangement expense | $ 4 | $ 5 | $ 19 |
Supplemental Cash Flow Statem_3
Supplemental Cash Flow Statement Disclosures (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash, Cash Equivalents and Restricted Cash | ||||
Cash and cash equivalents | $ 483 | $ 598 | $ 721 | $ 448 |
Current restricted cash | $ 9 | $ 13 | $ 7 | $ 10 |
Location of current restricted cash | us-gaap:OtherAssetsCurrent | us-gaap:OtherAssetsCurrent | us-gaap:OtherAssetsCurrent | us-gaap:OtherAssetsCurrent |
Noncurrent restricted cash | $ 1 | |||
Location of noncurrent restricted cash | us-gaap:OtherAssetsNoncurrent | |||
Cash in assets held for sale | $ 5 | |||
Total cash, cash equivalents and restricted cash | 497 | $ 611 | $ 728 | $ 459 |
Other Non-cash items | ||||
PP&E acquired but not yet paid | 124 | 127 | ||
Proceeds from dispositons, net of cash sold | 50 | $ (551) | ||
Other receivables | 552 | $ 522 | ||
Beverage Packaging China | ||||
Other Non-cash items | ||||
Other receivables | $ 213 |
Receivables, Net (Details)
Receivables, Net (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Receivables | ||
Trade accounts receivable | $ 922 | $ 812 |
Unbilled receivables | 491 | 478 |
Less allowances for doubtful accounts | (8) | (10) |
Net trade accounts receivable | 1,405 | 1,280 |
Other receivables | 552 | 522 |
Receivables, net | 1,957 | 1,802 |
Maximum available sale of the accounts receivables under factoring program | 1,300 | 1,200 |
Amount of accounts receivable available for sale under the factoring program | 155 | $ 178 |
Beverage Packaging China | ||
Receivables | ||
Other receivables | $ 213 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventories, Net | ||
Raw materials and supplies | $ 720 | $ 727 |
Work-in-process and finished goods | 541 | 614 |
Less inventory reserves | (81) | (70) |
Inventories, net | $ 1,180 | $ 1,271 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 7,211 | $ 7,211 | $ 7,277 | ||
Accumulated depreciation | (2,891) | (2,891) | (2,735) | ||
Net property, plant and equipment | 4,320 | 4,320 | 4,542 | ||
Depreciation expense | 123 | $ 121 | 368 | $ 375 | |
Land | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 148 | 148 | 159 | ||
Buildings | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 1,352 | 1,352 | 1,359 | ||
Machinery and equipment | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 5,203 | 5,203 | 5,250 | ||
Construction-in-progress | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 508 | $ 508 | $ 509 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Goodwill | |||
Balance at the beginning of the period | $ 4,475 | ||
Business disposition | (51) | ||
Transfer to assets held for sale | (1) | ||
Effects of currency exchange | (52) | ||
Balance at the end of the period | $ 4,371 | 4,371 | |
Goodwill | 4,371 | 4,371 | $ 4,475 |
Beverage Asia Pacific | |||
Goodwill | |||
Balance at the end of the period | 27 | 27 | |
Goodwill | 27 | 27 | |
Beverage AMEA | |||
Goodwill | |||
Balance at the end of the period | 102 | 102 | |
Percentage of fair value exceeding carrying value | 15.00% | ||
Goodwill | 102 | 102 | |
Beverage packaging, North And Central America | |||
Goodwill | |||
Balance at the beginning of the period | 1,275 | ||
Balance at the end of the period | 1,275 | 1,275 | |
Goodwill | 1,275 | 1,275 | $ 1,275 |
Beverage packaging, South America | |||
Goodwill | |||
Balance at the beginning of the period | 1,299 | ||
Balance at the end of the period | 1,299 | 1,299 | |
Goodwill | 1,299 | 1,299 | 1,299 |
Beverage packaging, Europe | |||
Goodwill | |||
Balance at the beginning of the period | 1,435 | ||
Effects of currency exchange | (47) | ||
Balance at the end of the period | 1,388 | 1,388 | |
Goodwill | 1,388 | 1,435 | 1,435 |
Aerospace | |||
Goodwill | |||
Balance at the beginning of the period | 40 | ||
Balance at the end of the period | 40 | 40 | |
Goodwill | 40 | 40 | 40 |
Other | |||
Goodwill | |||
Balance at the beginning of the period | 426 | ||
Business disposition | (51) | ||
Transfer to assets held for sale | (1) | ||
Effects of currency exchange | (5) | ||
Balance at the end of the period | 369 | 369 | |
Goodwill | 369 | $ 426 | $ 426 |
Beverage packaging China | Other | |||
Goodwill | |||
Business disposition | $ 51 |
Intangibles Assets, Net (Detail
Intangibles Assets, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Total annual intangible asset amortization expense | |||||
Acquired intangible assets, net of accumulated amortization | $ 26 | $ 26 | $ 33 | ||
Accumulated amortization | 112 | 112 | 112 | ||
Capitalized software (net of accumulated amortization) | 69 | 69 | 82 | ||
Accumulated amortization - capitalized software | 163 | 163 | 148 | ||
Total intangible assets, net | 2,027 | 2,027 | 2,188 | ||
Amortization of Intangible Assets | 46 | $ 50 | 142 | $ 154 | |
Rexam | |||||
Total annual intangible asset amortization expense | |||||
Acquired intangible assets, net of accumulated amortization | 1,932 | 1,932 | 2,073 | ||
Accumulated amortization | 512 | 512 | $ 399 | ||
Amortization of Intangible Assets | $ 38 | $ 40 | $ 118 | $ 124 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other assets | |||
Long-term deferred tax assets | $ 203 | $ 237 | |
Long-term pension assets | 561 | 559 | |
Investments in affiliates | 282 | 302 | |
Right-of-use operating lease assets | 242 | $ 244 | |
Other | 402 | 311 | |
Other Assets | $ 1,690 | $ 1,409 |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases | ||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | |
Lessee, Operating Lease, Existence of Option to Terminate [true false] | true | |
Components of lease expense | ||
Operating lease expense | $ (17) | $ (50) |
Variable lease expense | 3 | (7) |
Sublease income | 1 | 3 |
Net lease expense | $ (13) | $ (54) |
Leases - Supplemental informati
Leases - Supplemental information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | |
Cash paid for amounts included in the measurements of lease liabilities: | |||
Operating cash flows from operating leases | $ (11) | $ (47) | |
ROU assets obtained in exchange for lease obligations: | |||
Operating leases | $ 18 | $ 41 | |
Supplemental balance sheet information | |||
Balance sheet location for assets | us-gaap:OtherAssetsMember | us-gaap:OtherAssetsMember | us-gaap:OtherAssetsMember |
Operating lease right-of-use assets | $ 242 | $ 242 | $ 244 |
Balance sheet location for current liabilities | us-gaap:OtherCurrentLiabilitiesMember | us-gaap:OtherCurrentLiabilitiesMember | us-gaap:OtherCurrentLiabilitiesMember |
Current operating lease liabilities | $ 56 | $ 56 | $ 53 |
Balance sheet location for non-current liabilities | us-gaap:OtherLiabilitiesMember | us-gaap:OtherLiabilitiesMember | us-gaap:OtherNoncurrentLiabilitiesMember |
Noncurrent operating lease liabilities | $ 186 | $ 186 | $ 182 |
Leases - Weighted average infor
Leases - Weighted average information (Details) | Sep. 30, 2019 |
Weighted average information | |
Weighted average remaining lease term: Operating leases | 10 years |
Weighted average discount rate: Operating leases | 4.30% |
Leases - Lease liabilities matu
Leases - Lease liabilities maturities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Maturities of lease liabilities | |
2019 (excluding the six months ended June 30, 2019) | $ 15 |
2020 | 55 |
2021 | 46 |
2022 | 39 |
2023 | 30 |
Thereafter | 108 |
Future value of lease liabilities | 293 |
Less: Imputed interest | (51) |
Present value of lease liabilities | $ 242 |
Leases - Noncancelable rental p
Leases - Noncancelable rental payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Future rental payments required under total noncancellable operating leases before Topic 842 | |
2019 | $ 66 |
2020 | 52 |
2021 | 41 |
2022 | 34 |
2023 | 25 |
Thereafter | 87 |
Total future lease payments | $ 305 |
Debt - Long term debt (Details)
Debt - Long term debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Long-term debt | ||
Other (including debt issuance costs) | $ (41) | $ (41) |
Long-term debt, Total | 6,651 | 6,518 |
Less: Current portion of long-term debt | (28) | (8) |
Long-term debt excluding current maturities | 6,623 | 6,510 |
Senior Notes 5.25 percent, due July 2025 | ||
Long-term debt | ||
Long-term Debt, Gross | $ 1,000 | 1,000 |
Interest rate (as a percent) | 5.25% | |
Senior Notes 4.375 percent, due December 2020 | ||
Long-term debt | ||
Long-term Debt, Gross | $ 1,000 | 1,000 |
Interest rate (as a percent) | 4.375% | |
Senior Notes 4.00 percent , due November 2023 | ||
Long-term debt | ||
Long-term Debt, Gross | $ 1,000 | 1,000 |
Interest rate (as a percent) | 4.00% | |
Senior Notes 4.375 percent, euro denominated, due December 2023 | ||
Long-term debt | ||
Long-term Debt, Gross | $ 763 | 803 |
Interest rate (as a percent) | 4.375% | |
Senior Notes 5.00 percent, due March 2022 | ||
Long-term debt | ||
Long-term Debt, Gross | $ 750 | 750 |
Interest rate (as a percent) | 5.00% | |
Senior Notes 4.875 Percent, due March 2026 | ||
Long-term debt | ||
Long-term Debt, Gross | $ 750 | 750 |
Interest rate (as a percent) | 4.875% | |
Senior Notes 3.50 Percent, euro denominated, due December 2020 | ||
Long-term debt | ||
Long-term Debt, Gross | $ 436 | 459 |
Interest rate (as a percent) | 3.50% | |
Term A loan, due March 2024 | ||
Long-term debt | ||
Long-term Debt, Gross | $ 788 | $ 797 |
U.S. dollar revolver, due March 2024 at variable rate | ||
Long-term debt | ||
Long-term Debt, Gross | $ 205 |
Debt - Activity (Details)
Debt - Activity (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 25, 2019 | Dec. 31, 2018 |
Committed multi-currency revolving credit facilities due 2024 | |||
Revolving credit facility | |||
Maximum borrowing capacity of revolving credit facility | $ 1,750 | ||
Available borrowing capacity under line of credit facility | $ 1,500 | ||
Short-term uncommitted credit facilities | |||
Revolving credit facility | |||
Available borrowing capacity under line of credit facility | 978 | ||
Amount of credit facility outstanding and due on demand | $ 333 | $ 211 |
Debt - FV, Maturities, etc. (De
Debt - FV, Maturities, etc. (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Long term debt value | ||
Letters of credit, outstanding amount | $ 38 | $ 28 |
Ownership interest in guarantor subsidiaries (as a percent) | 100.00% | |
Leverage ratio, maximum | 4.5 | |
Level 2 | ||
Long term debt value | ||
Fair value of the long-term debt | $ 7,100 | $ 6,600 |
Taxes on Income (Details)
Taxes on Income (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Effective income tax changes by percentage | ||
Effective tax rate expressed as a percentage of pre-tax earnings | 26.90% | 15.10% |
Effective income tax rate reduction for by expense in share based compensation | 6.30% | 6.40% |
Effective income tax rate increase for impact of GILTI, net of FDII | 4.50% | 1.90% |
Effective income tax rate increase for sale of plants | 5.50% | 1.40% |
Effective income tax rate reduction for non-taxable income | 4.70% | 2.00% |
Effective income tax rate increase for settlement of pension liability | 8.50% | 2.10% |
Effective income tax rate reduction for federal tax credits | 2.00% | 1.20% |
Employee Benefit Obligations -
Employee Benefit Obligations - Total (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Employee Benefit Obligations | ||
Underfunded defined benefit pension liabilities | $ 834 | $ 954 |
Less current portion | (24) | (25) |
Long-term defined benefit pension liabilities | 810 | 929 |
Long-term retiree medical liabilities | 157 | 157 |
Deferred compensation plans | 377 | 291 |
Other | 39 | 78 |
Total non-current employee benefit obligations | $ 1,383 | $ 1,455 |
Employee Benefit Obligations _2
Employee Benefit Obligations - Components of net periodic benefit cost (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Ball-sponsored plans: | ||||||
Settlement loss | $ 8 | $ 14 | ||||
Selling, general and administrative | ||||||
Ball-sponsored plans: | ||||||
Non-service pension income | $ 5 | $ 16 | $ 3 | |||
Defined Benefit Pension Plans | ||||||
Ball-sponsored plans: | ||||||
Total net periodic benefit cost | 18 | $ 30 | 37 | 63 | ||
Contributions to pension plans | 154 | 53 | ||||
Expected contributions to pension plans for the full year | 168 | 168 | ||||
Defined Benefit Pension Plans | Ball Sponsored Plans | ||||||
Ball-sponsored plans: | ||||||
Service cost | 15 | 16 | 45 | 51 | ||
Interest cost | 43 | 43 | 129 | 127 | ||
Expected return on plan assets | (55) | (54) | (167) | (163) | ||
Amortization of prior service cost | 1 | 3 | 1 | |||
Recognized net actuarial loss | 6 | 11 | 19 | 32 | ||
Settlement losses | 8 | 14 | 8 | 14 | ||
Net periodic benefit cost for Ball sponsored plans | 37 | 62 | ||||
Defined Benefit Pension Plans | Multi-employer Plans | ||||||
Ball-sponsored plans: | ||||||
Net periodic benefit cost for multiemployer plans | 1 | |||||
U.S. | ||||||
Ball-sponsored plans: | ||||||
Pension benefit obligation to be transferred | $ 176 | |||||
U.S. | Defined Benefit Pension Plans | ||||||
Ball-sponsored plans: | ||||||
Total net periodic benefit cost | 16 | 34 | 44 | 75 | ||
U.S. | Defined Benefit Pension Plans | Ball Sponsored Plans | ||||||
Ball-sponsored plans: | ||||||
Service cost | 13 | 13 | 37 | 40 | ||
Interest cost | 26 | 25 | 76 | 73 | ||
Expected return on plan assets | (29) | (27) | (86) | (82) | ||
Amortization of prior service cost | 1 | 1 | 1 | |||
Recognized net actuarial loss | 5 | 9 | 16 | 28 | ||
Settlement losses | 14 | 14 | ||||
Net periodic benefit cost for Ball sponsored plans | 44 | 74 | ||||
U.S. | Defined Benefit Pension Plans | Multi-employer Plans | ||||||
Ball-sponsored plans: | ||||||
Net periodic benefit cost for multiemployer plans | 1 | |||||
Foreign | Defined Benefit Pension Plans | ||||||
Ball-sponsored plans: | ||||||
Total net periodic benefit cost | 2 | (4) | (7) | (12) | ||
Foreign | Defined Benefit Pension Plans | Ball Sponsored Plans | ||||||
Ball-sponsored plans: | ||||||
Service cost | 2 | 3 | 8 | 11 | ||
Interest cost | 17 | 18 | 53 | 54 | ||
Expected return on plan assets | (26) | (27) | (81) | (81) | ||
Amortization of prior service cost | 2 | |||||
Recognized net actuarial loss | 1 | $ 2 | 3 | 4 | ||
Settlement losses | $ 8 | 8 | ||||
Net periodic benefit cost for Ball sponsored plans | $ (7) | $ (12) | ||||
Canada | ||||||
Ball-sponsored plans: | ||||||
Pension benefit obligation to be transferred | $ 32 |
Equity and Accumulated Other _3
Equity and Accumulated Other Comprehensive Earnings - Equity activity (Details) - USD ($) shares in Thousands, $ in Millions | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 |
Increase (Decrease) in Stockholders' Equity | ||||||
Balance at beginning of the period | $ 3,562 | $ 3,564 | $ 3,995 | $ 3,562 | $ 4,084 | |
Net earnings | 92 | 59 | 406 | 304 | ||
Other comprehensive earnings (loss), net of tax, excluding currency translation on assets transferred to held for sale | 36 | (33) | 153 | (144) | ||
Currency translation recognized in earnings as a result of the transfer of the Argentina steel aerosol business to held for sale | 45 | 45 | ||||
Reclassification of stranded tax effects | 79 | |||||
Common dividends, net of tax benefits | (49) | (34) | (133) | (104) | ||
Treasury stock purchases | (232) | (269) | (612) | (471) | ||
Treasury stock purchases (in shares) | (3,800) | |||||
Treasury shares reissued | 7 | 7 | 19 | 18 | ||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | 7 | 21 | 22 | 57 | ||
Other activity | (5) | (1) | 3 | 1 | ||
Balance at end of the period | 3,465 | 3,745 | $ 3,465 | 3,465 | 3,745 | |
Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Balance at beginning of the period | $ 1,157 | $ 1,172 | $ 1,120 | $ 1,157 | $ 1,084 | |
Balance (in shares) | 673,237 | 675,463 | 672,070 | 673,237 | 670,576 | |
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | $ 7 | $ 21 | $ 22 | $ 57 | ||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged (in shares) | 588 | 629 | 2,814 | 2,123 | ||
Other activity | $ (2) | $ 1 | $ (2) | $ 1 | ||
Balance at end of the period | $ 1,177 | $ 1,142 | $ 1,177 | $ 1,177 | $ 1,142 | |
Balance (in shares) | 676,051 | 672,699 | 676,051 | 676,051 | 672,699 | |
Treasury Stock, Common | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Balance at beginning of the period | $ (2,205) | $ (2,566) | $ (1,663) | $ (2,205) | $ (1,474) | |
Balance (in shares) | 337,979 | 343,623 | 325,459 | 337,979 | 320,695 | |
Treasury stock purchases | $ (232) | $ (269) | $ (612) | $ (471) | ||
Treasury stock purchases (in shares) | (3,296) | (6,731) | (9,470) | (11,990) | ||
Treasury shares reissued | $ 7 | $ 7 | $ 19 | $ 18 | ||
Treasury shares reissued (in shares) | 64 | 172 | 594 | 667 | ||
Other activity | $ 1 | $ (1) | $ 8 | $ 1 | ||
Balance at end of the period | $ (2,790) | $ (1,926) | $ (2,790) | $ (2,790) | $ (1,926) | |
Balance (in shares) | 346,855 | 332,018 | 346,855 | 346,855 | 332,018 | |
Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Balance at beginning of the period | $ 5,341 | $ 5,651 | $ 5,199 | $ 5,341 | $ 5,024 | |
Net earnings | 92 | 59 | 406 | 303 | ||
Reclassification of stranded tax effects | 79 | |||||
Common dividends, net of tax benefits | (49) | (34) | (133) | (104) | ||
Other activity | 1 | 1 | ||||
Balance at end of the period | 5,694 | 5,224 | $ 5,694 | 5,694 | 5,224 | |
Accumulated Other Comprehensive Earnings (Loss) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Balance at beginning of the period | (835) | (797) | (767) | (835) | (655) | |
Other comprehensive earnings (loss), net of tax, excluding currency translation on assets transferred to held for sale | 36 | (33) | 153 | (144) | ||
Currency translation recognized in earnings as a result of the transfer of the Argentina steel aerosol business to held for sale | 45 | 45 | ||||
Reclassification of stranded tax effects | (79) | |||||
Other activity | (1) | |||||
Balance at end of the period | (716) | (800) | (716) | (716) | (800) | |
Noncontrolling Interest | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Balance at beginning of the period | $ 104 | 104 | 106 | 104 | 105 | |
Net earnings | 1 | |||||
Other activity | (4) | (1) | (4) | (1) | ||
Balance at end of the period | $ 100 | $ 105 | $ 100 | $ 100 | $ 105 |
Equity and Accumulated Other _4
Equity and Accumulated Other Comprehensive Earnings - Share repurchase program (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 5 Months Ended | |
May 31, 2019 | Sep. 30, 2019 | Jan. 23, 2019 | |
Share Repurchase Program | |||
Stock repurchase agreement, value | $ 250 | ||
Shares received | 3.8 | ||
Average price paid per share | $ 65.93 | ||
Maximum | |||
Share Repurchase Program | |||
Number of shares authorized for repurchase | 50 |
Equity and Accumulated Other _5
Equity and Accumulated Other Comprehensive Earnings - AOCI Activity (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Jul. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Earnings (Loss) | ||||
Stockholders' Equity Attributable to Parent, Beginning Balance | $ 3,458 | |||
Currency translation recognized in earnings as a result of the transfer of the Argentina steel aerosol business to held for sale | $ 45 | 45 | ||
Stockholders' Equity Attributable to Parent, Ending Balance | 3,365 | 3,365 | ||
Settlement loss | $ 8 | $ 14 | ||
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Earnings (Loss) | ||||
Stockholders' Equity Attributable to Parent, Beginning Balance | (504) | |||
Other comprehensive earnings (loss) before reclassifications | 88 | |||
Currency translation recognized in earnings as a result of the transfer of the Argentina steel aerosol business to held for sale | 45 | |||
Stockholders' Equity Attributable to Parent, Ending Balance | (371) | (371) | ||
Pension and Other Postretirement Benefits (Net of Tax) | ||||
Accumulated Other Comprehensive Earnings (Loss) | ||||
Stockholders' Equity Attributable to Parent, Beginning Balance | (277) | |||
Other comprehensive earnings (loss) before reclassifications | 4 | |||
Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings | (76) | |||
Stranded tax effects reclassified into retained earnings | (24) | |||
Stockholders' Equity Attributable to Parent, Ending Balance | (325) | (325) | ||
Effective Derivatives (Net of Tax) | ||||
Accumulated Other Comprehensive Earnings (Loss) | ||||
Stockholders' Equity Attributable to Parent, Beginning Balance | (54) | |||
Other comprehensive earnings (loss) before reclassifications | 68 | |||
Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings | (3) | |||
Stranded tax effects reclassified into retained earnings | 31 | |||
Stockholders' Equity Attributable to Parent, Ending Balance | (20) | (20) | ||
Accumulated Other Comprehensive Earnings (Loss). | ||||
Accumulated Other Comprehensive Earnings (Loss) | ||||
Stockholders' Equity Attributable to Parent, Beginning Balance | (835) | |||
Other comprehensive earnings (loss) before reclassifications | 160 | |||
Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings | (79) | |||
Currency translation recognized in earnings as a result of the transfer of the Argentina steel aerosol business to held for sale | 45 | |||
Stranded tax effects reclassified into retained earnings | 7 | |||
Stockholders' Equity Attributable to Parent, Ending Balance | $ (716) | $ (716) |
Equity and Accumulated Other _6
Equity and Accumulated Other Comprehensive Earnings - AOCI Additional Details (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Gains (losses) on cash flow hedges | ||||
Net sales | $ 2,953 | $ 2,946 | $ 8,755 | $ 8,832 |
Cost of sales (excluding depreciation and amortization) | (2,363) | (2,362) | (7,044) | (7,083) |
Selling, general and administrative | (90) | (113) | (328) | (352) |
Business consolidation and other activities | (133) | (32) | (147) | (131) |
Earnings before taxes | 119 | 192 | 485 | 510 |
Tax benefit (expense) on amounts reclassified into earnings | (32) | (140) | (73) | (220) |
Net earnings | 92 | 59 | 406 | 304 |
Effective Derivatives (Net of Tax) | Cross-currency swap | ||||
Gains (losses) on cash flow hedges | ||||
Selling, general and administrative | 32 | 7 | 41 | 37 |
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||
Gains (losses) on cash flow hedges | ||||
Earnings before taxes | 35 | 32 | 41 | 93 |
Tax benefit (expense) on amounts reclassified into earnings | (7) | (8) | (10) | (21) |
Net earnings | 28 | 24 | 31 | 72 |
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Commodity contracts | ||||
Gains (losses) on cash flow hedges | ||||
Net sales | 6 | 2 | 12 | (2) |
Cost of sales (excluding depreciation and amortization) | (11) | 19 | (27) | 47 |
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Interest rate swap agreements | ||||
Gains (losses) on cash flow hedges | ||||
Interest expense | (1) | (1) | ||
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Foreign currency contracts | ||||
Gains (losses) on cash flow hedges | ||||
Selling, general and administrative | 6 | 5 | 1 | |
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Cross-currency swap | ||||
Gains (losses) on cash flow hedges | ||||
Interest expense | 3 | 4 | 11 | 10 |
Pension and Other Postretirement Benefits (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||
Amortization Of Pension And Other Postretirement Benefits: | ||||
Total before tax effect | (13) | (15) | (23) | (34) |
Tax benefit (expense) on amounts reclassified into earnings | (4) | 4 | (1) | 9 |
Recognized gain (loss), net of tax | (17) | (11) | (24) | (25) |
Prior service income (expense) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||
Amortization Of Pension And Other Postretirement Benefits: | ||||
Total before tax effect | (1) | (1) | ||
Actuarial gains (losses) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||
Amortization Of Pension And Other Postretirement Benefits: | ||||
Total before tax effect | (4) | (1) | (14) | (20) |
Effect of pension settlement | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||
Amortization Of Pension And Other Postretirement Benefits: | ||||
Total before tax effect | $ (8) | $ (14) | $ (8) | $ (14) |
Earnings and Dividends Per Sh_3
Earnings and Dividends Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings and Dividends Per Share | ||||
Net earnings attributable to Ball Corporation | $ 92 | $ 59 | $ 406 | $ 303 |
Basic weighted average common shares | 331,148,000 | 342,982,000 | 332,726,000 | 347,113,000 |
Effect of dilutive securities (in shares) | 9,484,000 | 6,727,000 | 8,976,000 | 6,642,000 |
Weighted average shares applicable to diluted earnings per share | 340,632,000 | 349,709,000 | 341,702,000 | 353,755,000 |
Per basic share (in dollars per share) | $ 0.28 | $ 0.17 | $ 1.22 | $ 0.87 |
Per diluted share (in dollars per share) | $ 0.27 | $ 0.17 | $ 1.19 | $ 0.86 |
Options excluded from EPS calculation | ||||
Number of outstanding options excluded from computation of diluted earnings per share | 0 | 4,000,000 | 0 | 4,000,000 |
Dividends declared and paid | ||||
Dividends paid (in dollars per share) | $ 0.15 | $ 0.10 | $ 0.40 | $ 0.30 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - General (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | ||
Sep. 30, 2019USD ($)approach$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | |
Financial Instruments and Risk Management | |||
Aggregate fair value of derivative instruments with credit-risk-related contingent features that were in a net liability position | $ 32 | $ 46 | |
Collateral amount posted for derivative instruments with credit-risk-related contingent features that were in a net liability position | $ 0 | $ 0 | |
Commodity contracts | |||
Financial Instruments and Risk Management | |||
Number of methods through which entity manages commodity price risk in connection with market price fluctuations of aluminum ingot | approach | 2 | ||
Notional amount of derivatives | $ 1,300 | ||
Net gain (loss) expected to be recognized in the consolidated statement of earnings during the next 12 months | (21) | ||
Gain (loss) on derivatives included in AOCI, net of tax | (24) | ||
Commodity contracts | Derivatives Designated As Hedging Instruments | Cash Flow Hedging | |||
Financial Instruments and Risk Management | |||
Notional amount of derivatives | $ 1,200 | ||
Commodity contracts | Maximum | |||
Financial Instruments and Risk Management | |||
Period within which derivative will expire | 3 years | ||
Interest rate swap and option contracts | |||
Financial Instruments and Risk Management | |||
Notional amount of derivatives | $ 1,300 | ||
Interest rate swap and option contracts | Maximum | |||
Financial Instruments and Risk Management | |||
Period within which derivative will expire | 2 years | ||
Currency Exchange Rate Risk | |||
Financial Instruments and Risk Management | |||
Notional amount of derivatives | $ 3,800 | ||
Period within which derivative will expire | 5 years | ||
Net gain (loss) expected to be recognized in the consolidated statement of earnings during the next 12 months | $ 3 | ||
Gain (loss) on derivatives included in AOCI, net of tax | 10 | ||
Net after-tax gain (loss) included in AOCI | (10) | ||
Cross-currency swap | |||
Financial Instruments and Risk Management | |||
Notional amount of derivatives | 250 | $ 1,000 | |
Gain (loss) on derivatives included in AOCI, net of tax | (6) | ||
Notional amount terminated | $ 750 | ||
Equity contracts | |||
Financial Instruments and Risk Management | |||
Change in company's stock price (in dollars per share) | $ / shares | $ 1 | ||
Combined notional value (in shares) | shares | 2.9 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Measurements | ||
Total current derivative contracts, assets | $ 61 | $ 36 |
Total noncurrent derivative contracts, assets | 34 | |
Total current derivative contracts, liabilities | 44 | 62 |
Total noncurrent derivative contracts, liabilities | 3 | 64 |
Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 10 | 10 |
Total current derivative contracts, liabilities | 35 | 53 |
Total noncurrent derivative contracts, liabilities | 3 | 2 |
Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 50 | 21 |
Total noncurrent derivative contracts, assets | 31 | |
Total current derivative contracts, liabilities | 1 | 6 |
Cross-currency and other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 1 | 5 |
Total current derivative contracts, liabilities | 8 | 3 |
Total noncurrent derivative contracts, liabilities | 62 | |
Interest rate and other contracts | ||
Fair Value Measurements | ||
Total noncurrent derivative contracts, assets | 3 | |
Derivatives Designated As Hedging Instruments | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 13 | 9 |
Total noncurrent derivative contracts, assets | 34 | |
Total current derivative contracts, liabilities | 36 | 45 |
Total noncurrent derivative contracts, liabilities | 3 | 64 |
Derivatives Designated As Hedging Instruments | Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 10 | 9 |
Total current derivative contracts, liabilities | 35 | 42 |
Total noncurrent derivative contracts, liabilities | 3 | 2 |
Derivatives Designated As Hedging Instruments | Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 2 | |
Total noncurrent derivative contracts, assets | 31 | |
Total current derivative contracts, liabilities | 2 | |
Derivatives Designated As Hedging Instruments | Cross-currency and other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 1 | |
Total current derivative contracts, liabilities | 1 | 1 |
Total noncurrent derivative contracts, liabilities | 62 | |
Derivatives Designated As Hedging Instruments | Interest rate and other contracts | ||
Fair Value Measurements | ||
Total noncurrent derivative contracts, assets | 3 | |
Derivatives Not Designated as Hedging Instruments | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 48 | 27 |
Total current derivative contracts, liabilities | 8 | 17 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 1 | |
Total current derivative contracts, liabilities | 11 | |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 48 | 21 |
Total current derivative contracts, liabilities | 1 | 4 |
Derivatives Not Designated as Hedging Instruments | Cross-currency and other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 5 | |
Total current derivative contracts, liabilities | $ 7 | $ 2 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Impact on Earnings (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Impact on Earnings from Derivative Instruments | |||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | $ 35 | $ 32 | $ 41 | $ 93 | |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 96 | 39 | 205 | 94 | |
Amounts reclassified into earnings: | |||||
Commodity contracts | 5 | (21) | 15 | (45) | |
Interest rate contracts | 1 | 1 | |||
Cross currency swap contracts | (35) | (11) | (52) | (47) | |
Currency exchange contracts | (6) | (5) | (1) | ||
Change in fair value of cash flow hedges: | |||||
Derivative, Gain (Loss) on Derivative, Net | 35 | 32 | 41 | 93 | |
Stranded tax effects reclassified into retained earnings: | |||||
Reclassification of stranded tax effects | $ 79 | ||||
Changes in accumulated other comprehensive earnings (loss) for effective derivatives | 12 | (23) | 34 | (37) | |
Commodity contracts | |||||
Impact on Earnings from Derivative Instruments | |||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (5) | (11) | (10) | 1 | |
Change in fair value of cash flow hedges: | |||||
Derivative, Gain (Loss) on Derivative, Net | (5) | (11) | (10) | 1 | |
Stranded tax effects reclassified into retained earnings: | |||||
Reclassification of stranded tax effects | 2 | ||||
Commodity contracts | Net sales | |||||
Impact on Earnings from Derivative Instruments | |||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 6 | 2 | 12 | (2) | |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 1 | ||||
Change in fair value of cash flow hedges: | |||||
Derivative, Gain (Loss) on Derivative, Net | 6 | 2 | 12 | (2) | |
Commodity contracts | Cost of sales | |||||
Impact on Earnings from Derivative Instruments | |||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (11) | 19 | (27) | 47 | |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (1) | 2 | 2 | 6 | |
Change in fair value of cash flow hedges: | |||||
Derivative, Gain (Loss) on Derivative, Net | (11) | 19 | (27) | 47 | |
Interest rate contracts | |||||
Impact on Earnings from Derivative Instruments | |||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (1) | (1) | |||
Change in fair value of cash flow hedges: | |||||
Derivative, Gain (Loss) on Derivative, Net | (1) | (1) | |||
Interest rate contracts | Interest expense. | |||||
Impact on Earnings from Derivative Instruments | |||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (1) | (1) | |||
Change in fair value of cash flow hedges: | |||||
Derivative, Gain (Loss) on Derivative, Net | (1) | (1) | |||
Foreign currency contracts | Selling, general and administrative | |||||
Impact on Earnings from Derivative Instruments | |||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 6 | 5 | 1 | ||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 90 | 16 | 133 | 73 | |
Change in fair value of cash flow hedges: | |||||
Derivative, Gain (Loss) on Derivative, Net | 6 | 5 | 1 | ||
Equity contracts | Selling, general and administrative | |||||
Impact on Earnings from Derivative Instruments | |||||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 7 | 21 | 70 | 14 | |
Cross-currency swap | |||||
Impact on Earnings from Derivative Instruments | |||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 41 | 13 | 81 | 45 | |
Change in fair value of cash flow hedges: | |||||
Derivative, Gain (Loss) on Derivative, Net | 41 | 13 | 81 | 45 | |
Stranded tax effects reclassified into retained earnings: | |||||
Reclassification of stranded tax effects | (5) | ||||
Cross-currency swap | Interest expense. | |||||
Impact on Earnings from Derivative Instruments | |||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 3 | 4 | 11 | 10 | |
Change in fair value of cash flow hedges: | |||||
Derivative, Gain (Loss) on Derivative, Net | 3 | 4 | 11 | 10 | |
Cross-currency swap | Selling, general and administrative | |||||
Impact on Earnings from Derivative Instruments | |||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 32 | 7 | 41 | 37 | |
Change in fair value of cash flow hedges: | |||||
Derivative, Gain (Loss) on Derivative, Net | 32 | 7 | 41 | 37 | |
Currency exchange contracts | |||||
Impact on Earnings from Derivative Instruments | |||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 14 | 1 | 18 | (2) | |
Change in fair value of cash flow hedges: | |||||
Derivative, Gain (Loss) on Derivative, Net | 14 | 1 | 18 | (2) | |
Foreign currency and tax impacts | |||||
Impact on Earnings from Derivative Instruments | |||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (2) | 6 | (10) | 12 | |
Change in fair value of cash flow hedges: | |||||
Derivative, Gain (Loss) on Derivative, Net | $ (2) | $ 6 | $ (10) | $ 12 |
Contingencies - Environmental (
Contingencies - Environmental (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Nov. 30, 2012item | Jun. 30, 2019USD ($) | Sep. 30, 2019USD ($)a | |
Business consolidation and other activities | |||
Environmental remediation | |||
Prior year collections of ICMS amounts realizable | $ 56 | ||
Other Current Liabilities And Other Noncurrent Liabilities | |||
Environmental remediation | |||
Estimated potential liability for all environmental matters | $ 28 | ||
Waste Disposal Remediation | Lower Duwamish Site | |||
Environmental remediation | |||
Project costs to date | 100 | ||
Total site remediation costs expected to cover river bottom area in excess of amount spent to date | $ 342 | ||
Area of river bottom to be remediated (in acres) | a | 200 | ||
Waste Disposal Remediation | Lower Duwamish Site | Minimum | |||
Environmental remediation | |||
Number of potentially responsible parties (PRPs) | item | 50 | ||
Number of industrial companies and governmental entities under review | item | 30 | ||
Number of PRP groups discussing allocation proposals | item | 2 |
Subsidiary Guarantees of Debt -
Subsidiary Guarantees of Debt - Condensed Consolidating Statement of Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Subsidiary Guarantees of Debt | ||||
Ownership interest in guarantor subsidiaries (as a percent) | 100.00% | |||
Net sales | $ 2,953 | $ 2,946 | $ 8,755 | $ 8,832 |
Costs and expenses | ||||
Cost of sales (excluding depreciation and amortization) | (2,363) | (2,362) | (7,044) | (7,083) |
Depreciation and amortization | (169) | (171) | (510) | (529) |
Selling, general and administrative | (90) | (113) | (328) | (352) |
Business consolidation and other activities | (133) | (32) | (147) | (131) |
Total costs and expenses | (2,755) | (2,678) | (8,029) | (8,095) |
Earnings before interest and taxes | 198 | 268 | 726 | 737 |
Interest expense | (79) | (76) | (237) | (226) |
Debt refinancing and other costs | (4) | (1) | ||
Total interest expense | (79) | (76) | (241) | (227) |
Earnings (loss) before taxes | 119 | 192 | 485 | 510 |
Tax (provision) benefit | (32) | (140) | (73) | (220) |
Equity in results of affiliates, net of tax | 5 | 7 | (6) | 14 |
Net earnings | 92 | 59 | 406 | 304 |
Net (earnings) loss attributable to noncontrolling interests | (1) | |||
Net earnings attributable to Ball Corporation | 92 | 59 | 406 | 303 |
Comprehensive earnings (loss) attributable to Ball Corporation | 173 | 26 | 604 | 159 |
Eliminating Adjustments | ||||
Subsidiary Guarantees of Debt | ||||
Net sales | (207) | (201) | (619) | (599) |
Costs and expenses | ||||
Cost of sales (excluding depreciation and amortization) | 207 | 201 | 619 | 599 |
Equity in results of subsidiaries | (43) | (377) | (575) | (695) |
Total costs and expenses | 164 | (176) | 44 | (96) |
Earnings before interest and taxes | (43) | (377) | (575) | (695) |
Earnings (loss) before taxes | (43) | (377) | (575) | (695) |
Net earnings | (43) | (377) | (575) | (695) |
Net earnings attributable to Ball Corporation | (43) | (377) | (575) | (695) |
Comprehensive earnings (loss) attributable to Ball Corporation | (173) | (321) | (948) | (414) |
Ball Corporation | Reportable Legal Entities | ||||
Costs and expenses | ||||
Depreciation and amortization | (2) | (1) | (4) | (4) |
Selling, general and administrative | 41 | (244) | (20) | (278) |
Business consolidation and other activities | (7) | (53) | (23) | (70) |
Equity in results of subsidiaries | 80 | 369 | 467 | 634 |
Intercompany | 49 | 52 | 176 | 228 |
Total costs and expenses | 161 | 123 | 596 | 510 |
Earnings before interest and taxes | 161 | 123 | 596 | 510 |
Interest expense | (80) | (79) | (240) | (235) |
Debt refinancing and other costs | (4) | (1) | ||
Total interest expense | (80) | (79) | (244) | (236) |
Earnings (loss) before taxes | 81 | 44 | 352 | 274 |
Tax (provision) benefit | 11 | 15 | 54 | 29 |
Net earnings | 92 | 59 | 406 | 303 |
Net earnings attributable to Ball Corporation | 92 | 59 | 406 | 303 |
Comprehensive earnings (loss) attributable to Ball Corporation | 173 | 26 | 604 | 159 |
Guarantor Subsidiaries | ||||
Subsidiary Guarantees of Debt | ||||
Net sales | 1,680 | 1,666 | 4,966 | 5,003 |
Costs and expenses | ||||
Cost of sales (excluding depreciation and amortization) | (1,443) | (1,405) | (4,295) | (4,235) |
Depreciation and amortization | (51) | (49) | (150) | (153) |
Selling, general and administrative | (84) | 179 | (172) | 65 |
Business consolidation and other activities | (2) | 13 | (9) | (41) |
Equity in results of subsidiaries | (37) | 8 | 108 | 61 |
Intercompany | (24) | (6) | (88) | (158) |
Total costs and expenses | (1,641) | (1,260) | (4,606) | (4,461) |
Earnings before interest and taxes | 39 | 406 | 360 | 542 |
Interest expense | 1 | 3 | 4 | 10 |
Total interest expense | 1 | 3 | 4 | 10 |
Earnings (loss) before taxes | 40 | 409 | 364 | 552 |
Tax (provision) benefit | (13) | (103) | (52) | (135) |
Equity in results of affiliates, net of tax | 1 | 3 | (12) | 1 |
Net earnings | 28 | 309 | 300 | 418 |
Net earnings attributable to Ball Corporation | 28 | 309 | 300 | 418 |
Comprehensive earnings (loss) attributable to Ball Corporation | 84 | 313 | 506 | 309 |
Non-Guarantor Subsidiaries | ||||
Subsidiary Guarantees of Debt | ||||
Net sales | 1,480 | 1,481 | 4,408 | 4,428 |
Costs and expenses | ||||
Cost of sales (excluding depreciation and amortization) | (1,127) | (1,158) | (3,368) | (3,447) |
Depreciation and amortization | (116) | (121) | (356) | (372) |
Selling, general and administrative | (47) | (48) | (136) | (139) |
Business consolidation and other activities | (124) | 8 | (115) | (20) |
Intercompany | (25) | (46) | (88) | (70) |
Total costs and expenses | (1,439) | (1,365) | (4,063) | (4,048) |
Earnings before interest and taxes | 41 | 116 | 345 | 380 |
Interest expense | (1) | (1) | ||
Total interest expense | (1) | (1) | ||
Earnings (loss) before taxes | 41 | 116 | 344 | 379 |
Tax (provision) benefit | (30) | (52) | (75) | (114) |
Equity in results of affiliates, net of tax | 4 | 4 | 6 | 13 |
Net earnings | 15 | 68 | 275 | 278 |
Net (earnings) loss attributable to noncontrolling interests | (1) | |||
Net earnings attributable to Ball Corporation | 15 | 68 | 275 | 277 |
Comprehensive earnings (loss) attributable to Ball Corporation | $ 89 | $ 8 | $ 442 | $ 105 |
Subsidiary Guarantees of Debt_2
Subsidiary Guarantees of Debt - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | |||||||
Cash and cash equivalents | $ 483 | $ 721 | $ 598 | $ 448 | |||
Receivables, net | 1,957 | 1,802 | |||||
Inventories, net | 1,180 | 1,271 | |||||
Other current assets | 209 | $ 139 | 146 | ||||
Total current assets | 3,829 | 3,940 | |||||
Noncurrent assets | |||||||
Property, plant and equipment, net | 4,320 | 4,542 | |||||
Goodwill | 4,371 | 4,475 | |||||
Intangible assets, net | 2,027 | 2,188 | |||||
Other assets | 1,690 | 1,409 | |||||
Total assets | 16,237 | 16,554 | |||||
Current liabilities | |||||||
Short-term debt and current portion of long-term debt | 361 | 219 | |||||
Accounts payable | 2,658 | 3,095 | |||||
Accrued employee costs | 256 | 289 | |||||
Other current liabilities | 498 | 489 | 492 | ||||
Total current liabilities | 3,773 | 4,095 | |||||
Noncurrent liabilities | |||||||
Long-term debt | 6,623 | 6,510 | |||||
Employee benefit obligations | 1,383 | 1,455 | |||||
Long-term derivative liabilities | 3 | 64 | |||||
Deferred taxes | 602 | 645 | |||||
Deferred taxes | 203 | 237 | |||||
Other liabilities | 391 | $ 273 | 287 | ||||
Total liabilities | 12,772 | 12,992 | |||||
Common stock | 1,177 | 1,157 | |||||
Retained earnings | 5,694 | 5,341 | |||||
Accumulated other comprehensive earnings (loss) | (716) | (835) | |||||
Treasury stock, at cost | (2,790) | (2,205) | |||||
Total Ball Corporation shareholders' equity | 3,365 | 3,458 | |||||
Noncontrolling interests | 100 | 104 | |||||
Total equity | 3,465 | $ 3,564 | 3,562 | $ 3,745 | $ 3,995 | $ 4,084 | |
Total liabilities and equity | 16,237 | 16,554 | |||||
Eliminating Adjustments | |||||||
Current assets | |||||||
Intercompany receivables | (2,051) | (2,218) | |||||
Total current assets | (2,051) | (2,218) | |||||
Noncurrent assets | |||||||
Investment in subsidiaries | (14,168) | (14,825) | |||||
Total assets | (16,219) | (17,043) | |||||
Current liabilities | |||||||
Intercompany payables | (2,658) | (2,825) | |||||
Total current liabilities | (2,658) | (2,825) | |||||
Noncurrent liabilities | |||||||
Intercompany long-term notes | 607 | 606 | |||||
Total liabilities | (2,051) | (2,219) | |||||
Common stock | (6,423) | (7,837) | |||||
Preferred stock | (5) | (5) | |||||
Retained earnings | (8,492) | (8,028) | |||||
Accumulated other comprehensive earnings (loss) | 752 | 1,046 | |||||
Total Ball Corporation shareholders' equity | (14,168) | (14,824) | |||||
Total equity | (14,168) | (14,824) | |||||
Total liabilities and equity | (16,219) | (17,043) | |||||
Ball Corporation | Reportable Legal Entities | |||||||
Current assets | |||||||
Cash and cash equivalents | 7 | 4 | |||||
Receivables, net | 9 | 21 | |||||
Intercompany receivables | 103 | 66 | |||||
Other current assets | 37 | 32 | |||||
Total current assets | 156 | 123 | |||||
Noncurrent assets | |||||||
Property, plant and equipment, net | 34 | 24 | |||||
Investment in subsidiaries | 11,678 | 11,145 | |||||
Intangible assets, net | 18 | 18 | |||||
Other assets | 315 | 213 | |||||
Total assets | 12,201 | 11,523 | |||||
Current liabilities | |||||||
Short-term debt and current portion of long-term debt | 239 | 173 | |||||
Accounts payable | 17 | 50 | |||||
Intercompany payables | 2,379 | 2,310 | |||||
Accrued employee costs | 49 | 39 | |||||
Other current liabilities | 136 | 153 | |||||
Total current liabilities | 2,820 | 2,725 | |||||
Noncurrent liabilities | |||||||
Long-term debt | 6,620 | 6,504 | |||||
Employee benefit obligations | 822 | 871 | |||||
Intercompany long-term notes | (1,263) | (1,977) | |||||
Deferred taxes | (247) | (172) | |||||
Other liabilities | 84 | 114 | |||||
Total liabilities | 8,836 | 8,065 | |||||
Common stock | 1,177 | 1,157 | |||||
Retained earnings | 5,694 | 5,341 | |||||
Accumulated other comprehensive earnings (loss) | (716) | (835) | |||||
Treasury stock, at cost | (2,790) | (2,205) | |||||
Total Ball Corporation shareholders' equity | 3,365 | 3,458 | |||||
Total equity | 3,365 | 3,458 | |||||
Total liabilities and equity | 12,201 | 11,523 | |||||
Guarantor Subsidiaries | |||||||
Current assets | |||||||
Receivables, net | 594 | 613 | |||||
Intercompany receivables | 237 | 495 | |||||
Inventories, net | 506 | 527 | |||||
Other current assets | 39 | 35 | |||||
Total current assets | 1,376 | 1,670 | |||||
Noncurrent assets | |||||||
Property, plant and equipment, net | 1,403 | 1,378 | |||||
Investment in subsidiaries | 2,589 | 3,779 | |||||
Goodwill | 1,191 | 1,191 | |||||
Intangible assets, net | 383 | 409 | |||||
Other assets | 299 | 215 | |||||
Total assets | 7,241 | 8,642 | |||||
Current liabilities | |||||||
Accounts payable | 949 | 1,178 | |||||
Intercompany payables | 123 | 49 | |||||
Accrued employee costs | 119 | 144 | |||||
Other current liabilities | 142 | 119 | |||||
Total current liabilities | 1,333 | 1,490 | |||||
Noncurrent liabilities | |||||||
Employee benefit obligations | 293 | 286 | |||||
Intercompany long-term notes | (1,764) | 3 | |||||
Deferred taxes | 247 | 169 | |||||
Other liabilities | 128 | 45 | |||||
Total liabilities | 237 | 1,993 | |||||
Common stock | 2,523 | 2,523 | |||||
Retained earnings | 4,939 | 4,712 | |||||
Accumulated other comprehensive earnings (loss) | (458) | (586) | |||||
Total Ball Corporation shareholders' equity | 7,004 | 6,649 | |||||
Total equity | 7,004 | 6,649 | |||||
Total liabilities and equity | 7,241 | 8,642 | |||||
Non-Guarantor Subsidiaries | |||||||
Current assets | |||||||
Cash and cash equivalents | 476 | 717 | |||||
Receivables, net | 1,354 | 1,168 | |||||
Intercompany receivables | 1,711 | 1,657 | |||||
Inventories, net | 674 | 744 | |||||
Other current assets | 133 | 79 | |||||
Total current assets | 4,348 | 4,365 | |||||
Noncurrent assets | |||||||
Property, plant and equipment, net | 2,883 | 3,140 | |||||
Investment in subsidiaries | (99) | (99) | |||||
Goodwill | 3,180 | 3,284 | |||||
Intangible assets, net | 1,626 | 1,761 | |||||
Other assets | 1,076 | 981 | |||||
Total assets | 13,014 | 13,432 | |||||
Current liabilities | |||||||
Short-term debt and current portion of long-term debt | 122 | 46 | |||||
Accounts payable | 1,692 | 1,867 | |||||
Intercompany payables | 156 | 466 | |||||
Accrued employee costs | 88 | 106 | |||||
Other current liabilities | 220 | 220 | |||||
Total current liabilities | 2,278 | 2,705 | |||||
Noncurrent liabilities | |||||||
Long-term debt | 3 | 6 | |||||
Employee benefit obligations | 268 | 298 | |||||
Intercompany long-term notes | 2,420 | 1,368 | |||||
Deferred taxes | 602 | 648 | |||||
Other liabilities | 179 | 128 | |||||
Total liabilities | 5,750 | 5,153 | |||||
Common stock | 3,900 | 5,314 | |||||
Preferred stock | 5 | 5 | |||||
Retained earnings | 3,553 | 3,316 | |||||
Accumulated other comprehensive earnings (loss) | (294) | (460) | |||||
Total Ball Corporation shareholders' equity | 7,164 | 8,175 | |||||
Noncontrolling interests | 100 | 104 | |||||
Total equity | 7,264 | 8,279 | |||||
Total liabilities and equity | $ 13,014 | $ 13,432 |
Subsidiary Guarantees of Debt_3
Subsidiary Guarantees of Debt - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Subsidiary Guarantees of Debt | ||
Cash provided by (used in) operating activities | $ 656 | $ 1,027 |
Cash flows from investing activities | ||
Capital expenditures | (425) | (616) |
Proceeds from dispositons, net of cash sold | (50) | 551 |
Other, net | 26 | 50 |
Cash provided by (used in) investing activities | (449) | (15) |
Cash Flows from Financing Activities | ||
Long-term borrowings | 1,098 | 1,475 |
Repayments of long-term borrowings | (906) | (1,531) |
Net change in short-term borrowings | 131 | (189) |
Proceeds from issuances of common stock, net of shares used for taxes | 16 | 25 |
Acquisitions of treasury stock | (614) | (464) |
Common stock dividends | (133) | (104) |
Other, net | (10) | (13) |
Cash provided by (used in) financing activities | (418) | (801) |
Effect of exchange rate changes on cash | (20) | (59) |
Change in cash, cash equivalents and restricted cash | (231) | 152 |
Cash, cash equivalents and restricted cash - beginning of period | 728 | 459 |
Cash, cash equivalents and restricted cash - end of period | 497 | 611 |
Ball Corporation | Reportable Legal Entities | ||
Subsidiary Guarantees of Debt | ||
Cash provided by (used in) operating activities | (332) | (103) |
Cash flows from investing activities | ||
Capital expenditures | (12) | (5) |
Proceeds from dispositons, net of cash sold | (53) | |
Other, net | (2) | (1) |
Cash provided by (used in) investing activities | (14) | (59) |
Cash Flows from Financing Activities | ||
Long-term borrowings | 1,095 | 1,475 |
Repayments of long-term borrowings | (900) | (1,525) |
Net change in short-term borrowings | 47 | (138) |
Proceeds from issuances of common stock, net of shares used for taxes | 16 | 25 |
Acquisitions of treasury stock | (614) | (464) |
Common stock dividends | (133) | (104) |
Intercompany | 849 | 905 |
Other, net | (10) | (12) |
Cash provided by (used in) financing activities | 350 | 162 |
Change in cash, cash equivalents and restricted cash | 4 | |
Cash, cash equivalents and restricted cash - beginning of period | 3 | 5 |
Cash, cash equivalents and restricted cash - end of period | 7 | 5 |
Guarantor Subsidiaries | ||
Subsidiary Guarantees of Debt | ||
Cash provided by (used in) operating activities | 256 | 148 |
Cash flows from investing activities | ||
Capital expenditures | (186) | (356) |
Proceeds from dispositons, net of cash sold | 604 | |
Other, net | 10 | 18 |
Cash provided by (used in) investing activities | (176) | 266 |
Cash Flows from Financing Activities | ||
Intercompany | (80) | (413) |
Other, net | (1) | |
Cash provided by (used in) financing activities | (80) | (414) |
Non-Guarantor Subsidiaries | ||
Subsidiary Guarantees of Debt | ||
Cash provided by (used in) operating activities | 732 | 982 |
Cash flows from investing activities | ||
Capital expenditures | (227) | (255) |
Proceeds from dispositons, net of cash sold | (50) | |
Other, net | 18 | 33 |
Cash provided by (used in) investing activities | (259) | (222) |
Cash Flows from Financing Activities | ||
Long-term borrowings | 3 | |
Repayments of long-term borrowings | (6) | (6) |
Net change in short-term borrowings | 84 | (51) |
Intercompany | (769) | (492) |
Cash provided by (used in) financing activities | (688) | (549) |
Effect of exchange rate changes on cash | (20) | (59) |
Change in cash, cash equivalents and restricted cash | (235) | 152 |
Cash, cash equivalents and restricted cash - beginning of period | 725 | 454 |
Cash, cash equivalents and restricted cash - end of period | $ 490 | $ 606 |