Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
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 | 326,001,768 | |
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 | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Statement of Earni
Consolidated Statement of Earnings - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements of Earnings | ||
Net sales | $ 2,785 | $ 2,785 |
Costs and expenses | ||
Cost of sales (excluding depreciation and amortization) | (2,215) | (2,253) |
Depreciation and amortization | (169) | (170) |
Selling, general and administrative | (131) | (127) |
Business consolidation and other activities | (115) | (14) |
Total costs and expenses | (2,630) | (2,564) |
Earnings before interest and taxes | 155 | 221 |
Interest expense | (71) | (77) |
Debt refinancing and other costs | (40) | (4) |
Total interest expense | (111) | (81) |
Earnings before taxes | 44 | 140 |
Tax (provision) benefit | 4 | (10) |
Equity in results of affiliates, net of tax | (25) | (13) |
Net earnings | 23 | 117 |
Net (earnings) loss attributable to noncontrolling interests | ||
Net earnings attributable to Ball Corporation | $ 23 | $ 117 |
Earnings per share: | ||
Per basic share (in dollars per share) | $ 0.07 | $ 0.35 |
Per diluted share (in dollars per share) | $ 0.07 | $ 0.34 |
Weighted average shares outstanding (000s): | ||
Basic (in shares) | 325,346 | 334,239 |
Diluted (in shares) | 332,326 | 342,676 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements of Comprehensive Earnings (Loss) | ||
Net earnings | $ 23 | $ 117 |
Other comprehensive earnings (loss): | ||
Foreign currency translation adjustment | (224) | 79 |
Pension and other postretirement benefits | (8) | 24 |
Derivatives designated as hedges | 8 | 30 |
Total other comprehensive earnings (loss) | (224) | 133 |
Income tax (provision) benefit | (5) | (8) |
Total other comprehensive earnings (loss), net of tax | (229) | 125 |
Total comprehensive earnings (loss) | (206) | 242 |
Comprehensive (earnings) loss attributable to noncontrolling interests | ||
Comprehensive earnings (loss) attributable to Ball Corporation | $ (206) | $ 242 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 801 | $ 1,798 |
Receivables, net | 1,862 | 1,631 |
Inventories, net | 1,354 | 1,274 |
Other current assets | 224 | 181 |
Total current assets | 4,241 | 4,884 |
Noncurrent assets | ||
Property, plant and equipment, net | 4,499 | 4,470 |
Goodwill | 4,270 | 4,419 |
Intangible assets, net | 1,914 | 2,002 |
Other assets | 1,621 | 1,585 |
Total assets | 16,545 | 17,360 |
Current liabilities | ||
Short-term debt and current portion of long-term debt | 522 | 1,480 |
Accounts payable | 2,613 | 3,136 |
Accrued employee costs | 236 | 285 |
Other current liabilities | 632 | 676 |
Total current liabilities | 4,003 | 5,577 |
Noncurrent liabilities | ||
Long-term debt | 7,476 | 6,337 |
Employee benefit obligations | 1,435 | 1,486 |
Deferred taxes | 547 | 561 |
Other liabilities | 384 | 380 |
Total liabilities | 13,845 | 14,341 |
Equity | ||
Common stock (678,128,063 shares issued - 2020; 676,302,319 shares issued - 2019) | 1,151 | 1,178 |
Retained earnings | 5,777 | 5,803 |
Accumulated other comprehensive earnings (loss) | (1,139) | (910) |
Treasury stock, at cost (352,208,959 shares - 2020; 351,667,322 shares - 2019) | (3,159) | (3,122) |
Total Ball Corporation shareholders' equity | 2,630 | 2,949 |
Noncontrolling interests | 70 | 70 |
Total equity | 2,700 | 3,019 |
Total liabilities and equity | $ 16,545 | $ 17,360 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Mar. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets | ||
Common stock, shares issued | 678,128,063 | 676,302,319 |
Treasury stock, at cost | 352,208,959 | 351,667,322 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net earnings | $ 23 | $ 117 |
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 169 | 170 |
Business consolidation and other activities | 115 | 14 |
Deferred tax provision (benefit) | (36) | 10 |
Other, net | 58 | 47 |
Changes in working capital components, net of dispositions | (1,037) | (487) |
Cash provided by (used in) operating activities | (708) | (129) |
Cash Flows from Investing Activities | ||
Capital expenditures | (213) | (154) |
Business dispositions, net of cash sold | (17) | |
Other, net | (4) | (9) |
Cash provided by (used in) investing activities | (234) | (163) |
Cash Flows from Financing Activities | ||
Long-term borrowings | 1,252 | 671 |
Repayments of long-term borrowings | (1,547) | (412) |
Net change in short-term borrowings | 493 | 160 |
Proceeds (payments) from issuances of common stock, net of shares used for taxes | (31) | (4) |
Acquisitions of treasury stock | (57) | (146) |
Common stock dividends | (51) | (34) |
Other, net | (34) | (10) |
Cash provided by (used in) financing activities | 25 | 225 |
Effect of exchange rate changes on cash | (78) | 11 |
Change in cash, cash equivalents and restricted cash | (995) | (56) |
Cash, cash equivalents and restricted cash - beginning of period | 1,806 | 728 |
Cash, cash equivalents and restricted cash - end of period | $ 811 | $ 672 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
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 2019 Annual Report on Form 10-K filed on February 19, 2020, pursuant to the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2019 (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 that are of a normal recurring nature and are necessary to fairly state the results of the periods presented. Risks and Uncertainties – Novel Coronavirus (COVID-19) The preparation of financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the reporting date and revenues and expenses during the reporting periods. These estimates represent management’s judgement about the outcome of future events. The current global business environment is being impacted directly and indirectly by the effects of the novel coronavirus (COVID-19), and it is not possible to accurately predict the future impact of COVID-19. However, Ball management has reviewed the estimates used in preparing the financial statements and the following have a reasonably possible likelihood of being affected, to a material extent, by the direct and indirect impacts of COVID-19 in the near term. ● Estimates regarding the future financial performance of the business used in the impairment tests for goodwill, long-lived assets, equity method investments, recoverability of deferred tax assets and estimates regarding cash needs and associated indefinite reinvestment assertions; ● Estimates of recoverability for customer receivables; ● Estimates of net realizable value for inventory; ● Estimates regarding the likelihood of forecasted transactions associated with hedge accounting at March 31, 2020, could cease to meet the hedge accounting requirements and result in the recognition of income and/or expenses. In addition to the above potential impacts on the estimates used in preparing financial statements, COVID-19 has the potential to increase Ball’s vulnerabilities to near-term severe impacts related to certain concentrations in its business. In line with other companies in the packaging and aerospace industries, Ball makes the majority of its sales and significant purchases to or from a relatively small number of global, or large regional, customers and suppliers. Furthermore, Ball makes the majority of its sales from a small number of product lines. The potential of COVID-19 to affect a significant customer or supplier, or to affect demand for certain products to a significant degree, heightens the vulnerability of Ball to these concentrations. Certain prior year amounts have been reclassified in order to conform to the current year presentation. |
Accounting Pronouncements
Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Pronouncements | |
Accounting Pronouncements | 2. Accounting Pronouncements Recently Adopted Accounting Standards 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 was applied prospectively on January 1, 2020, and did not have a material effect on the company’s unaudited condensed 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 is 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. Ball adopted this guidance and all related amendments on January 1, 2020, applying the modified retrospective method, and this adoption did not have a material effect on the company’s unaudited condensed consolidated financial statements. New Accounting Guidance Income Tax Simplification In December 2019, accounting guidance was issued to simplify the accounting for income taxes. The guidance is effective for Ball on January 1, 2021, and the company is currently assessing the impact that the adoption of this new guidance will have on its consolidated financial statements. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
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. Effective January 1, 2020, the company implemented changes to its management and internal reporting structure for cost reduction and operational efficiency purposes. As a result of these changes, the company’s plants in Cairo, Egypt, and Manisa, Turkey, are now included in the beverage packaging, Europe, Middle East and Africa (beverage packaging, EMEA), segment. The company’s operations in India and Saudi Arabia are now combined with the former non-reportable beverage packaging, Asia Pacific, operating segment as a new non-reportable beverage packaging, other, operating segment. The company’s segment results and disclosures for the three months ended March 31, 2019, have been retrospectively adjusted to conform to the current year presentation. Beverage packaging, North and Central America : Beverage packaging, EMEA : Beverage packaging, South America : Aerospace : As presented in the table below, Other consists of a non-reportable operating segment (beverage packaging, other), that manufactures and sells aluminum beverage containers in India, Saudi Arabia and throughout the Asia Pacific region; a non-reportable operating segment that manufactures and sells extruded aluminum aerosol containers and aluminum slugs (aerosol packaging); a non-reportable operating segment that manufactures and sells aluminum cups (aluminum cups); 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 March 31, ($ in millions) 2020 2019 Net sales Beverage packaging, North and Central America $ 1,181 $ 1,131 Beverage packaging, EMEA 669 684 Beverage packaging, South America 405 441 Aerospace 432 328 Reportable segment sales 2,687 2,584 Other 98 201 Net sales $ 2,785 $ 2,785 Comparable operating earnings Beverage packaging, North and Central America $ 146 $ 118 Beverage packaging, EMEA 68 74 Beverage packaging, South America 63 68 Aerospace 40 30 Reportable segment comparable operating earnings 317 290 Reconciling items Other (a) (10) (15) Business consolidation and other activities (115) (14) Amortization of acquired Rexam intangibles (37) (40) Earnings before interest and taxes 155 221 Interest expense (71) (77) Debt refinancing and other costs (40) (4) Total interest expense (111) (81) Earnings before taxes $ 44 $ 140 (a) Includes undistributed corporate expenses, net, of $14 million and $23 million for the three months ended March 31, 2020 and 2019, 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 | 3 Months Ended |
Mar. 31, 2020 | |
Acquisitions and Dispositions | |
Acquisitions and Dispositions | 4. Acquisitions and Dispositions Brazil Aluminum Aerosol Packaging Business In March 2020, the company agreed to acquire the entire share capital of Tubex Industria E Comercio de Embalagens Ltda, an aluminum aerosol packaging business with a plant near Sao Paolo, Brazil, for initial cash consideration of $80 million, subject to customary closing adjustments, and potential additional consideration not to exceed $30 million over the three years following the transaction close date. The business will be part of Ball’s aerosol packaging operating segment. The transaction is expected to close in the third quarter of 2020 and will broaden the geographic reach of Ball’s aluminum aerosol packaging business, serving the growing Brazilian personal care market. Argentina Steel Aerosol Business In October 2019, the company sold its Argentine steel aerosol packaging business, which included facilities in Garin and San Luis, Argentina, and recorded a loss on disposal of $52 million, which included the write-off of cumulative translation adjustments of $45 million related to the Argentina business that had been previously recorded in accumulated other comprehensive income. The loss on disposal was presented in business consolidation and other activities in the company’s unaudited condensed consolidated statements of earnings. Beverage Packaging China In September 2019, the company completed the sale of 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 value of which has been reduced to zero dollars, as described in Note 6. The upfront proceeds from this sale were received in the fourth quarter of 2019. The potential additional consideration was written off during the first quarter of 2020. This charge, along with the loss on disposal of $45 million recorded in the third quarter of 2019, was recorded in business consolidation and other activities in the unaudited condensed consolidated statement of earnings. |
Revenue from Contracts With Cus
Revenue from Contracts With Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer | |
Revenue from Contracts with Customers | 5. Revenue from Contracts with Customers Disaggregation of Sales The company disaggregates net sales by reportable segments as disclosed in Note 3, and based on the timing of transfer of control for goods and services as explained below. The transfer of control for goods and services may occur at a point in time or over time. As disclosed in Note 3, the company’s business consists of four reportable segments, which encompass disaggregated product lines and geographical areas: (1) beverage packaging, North and Central America; (2) beverage packaging, EMEA; (3) beverage packaging, South America; and (4) aerospace. The following table disaggregates the company’s net sales based on the timing of transfer of control: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 ($ in millions) Point in Time Over Time Total Point in Time Over Time Total Total net sales $ 503 $ 2,282 $ 2,785 $ 557 $ 2,228 $ 2,785 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 March 31, 2020, or December 31, 2019. 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: Contract Contract Liabilities Liabilities ($ in millions) (Current) (Noncurrent) Balance at December 31, 2019 87 9 Increase (decrease) 1 (1) Balance at March 31, 2020 $ 88 $ 8 During the three months ended March 31, 2020, total contract liabilities remained flat, which is net of cash received of $121 million and amounts recognized as sales of $121 million, all of which related to current contract liabilities. The amount of sales recognized in the three months ended March 31, 2020, which were included in the opening contract liabilities balances, was $87 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 $9 million and $6 million in the three months ended March 31, 2020 and 2019, respectively, from performance obligations satisfied (or partially satisfied) in prior periods. These sales amounts are the result of changes in the transaction price of the company’s contracts with customers. Transaction Price Allocated to Remaining Performance Obligations In the context of the revenue recognition standard, enforceable contracts are those that have an enforceable right to payment, which Ball typically has once a binding forecast or purchase order (or similar contract) is in place and Ball produces under the contract. Within Ball’s packaging segments, enforceable contracts as defined all have a duration of less than one year. Contracts that have an original duration of less than one year are excluded from the requirement to disclose remaining performance obligations based on the company’s election to use the practical expedient. The table below discloses: (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period for contracts with an original duration of greater than one year, and (2) when the company expects to record sales on these multi-year contracts. ($ in millions) Next Twelve Months Thereafter Total Sales expected to be recognized on multi-year contracts in place as of March 31, 2020 $ 1,371 $ 909 $ 2,280 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 | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, ($ in millions) 2020 2019 Beverage packaging, North and Central America $ (3) $ (1) Beverage packaging, EMEA (3) 1 Beverage packaging, South America (1) (1) Other (108) (13) $ (115) $ (14) 2020 Beverage Packaging, North and Central America During the three months ended March 31, 2020, the company recorded charges of $3 million for individually insignificant activities in connection with previously announced closures in 2018 of certain beverage can and end manufacturing facilities and other activities. Beverage Packaging, EMEA During the three months ended March 31, 2020, the company recorded charges of $3 million for individually insignificant activities in connection with previously announced plant closures, restructuring and other activities. Beverage Packaging, South America Charges in the three months ended March 31, 2020, included $1 million of expense for individually insignificant activities. Other During 2020, the company recorded the following amounts: ● A non-cash impairment charge of $62 million related to the goodwill of the new beverage packaging, other, operating segment. ● Charges of $23 million resulting from the current deterioration in the real estate market in China, which led to the company reducing the value of potential future consideration due as part of the sale of the company’s China beverage packaging business. ● Charges of $15 million resulting from an adjustment to the selling price of the company’s steel food and aerosol business. ● Credits of $11 million related to the reversal of reserves against working capital recorded in the fourth quarter of 2019 in the new beverage packaging, other, segment as previously at-risk balances were subsequently collected in the first quarter of 2020. ● Charges of $6 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition. ● Charges of $13 million for individually insignificant activities. 2019 Beverage Packaging, North and Central America Charges in the three months ended March 31, 2019, included $1 million of expense for individually insignificant activities. Beverage Packaging, EMEA During the three months ended March 31, 2019, the company recorded credits of $2 million resulting from updated estimates for employee severance and benefits and facility shutdown costs in connection with the closures of its Recklinghausen, Germany, and San Martino, Italy, plants, which ceased production during the third quarter of 2017 and the fourth quarter of 2018, respectively. Other charges in the three months ended March 31, 2019, included $1 million of expense for individually insignificant activities. Beverage Packaging, South America Charges in the three months ended March 31, 2019, included $1 million of expense for individually insignificant activities. Other During the three months ended March 31, 2019, the company recorded charges of $13 million for estimated employee severance costs and professional services associated with the planned sale of the company’s former China beverage packaging business, which closed in September 2019. |
Supplemental Cash Flow Statemen
Supplemental Cash Flow Statement Disclosures | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Statement Disclosures | |
Cash and Cash Equivalents Disclosure [Text Block] | 7. Supplemental Cash Flow Statement Disclosures March 31, ($ in millions) 2020 2019 Beginning of period: Cash and cash equivalents $ 1,798 $ 721 Current restricted cash (included in other current assets) 8 7 Total cash, cash equivalents and restricted cash $ 1,806 $ 728 End of period: Cash and cash equivalents $ 801 $ 603 Current restricted cash (included in other current assets) 10 6 Cash in assets held for sale (included in other current assets) — 63 Total cash, cash equivalents and restricted cash $ 811 $ 672 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 yet been made or obtained through finance leases. These noncash capital expenditures are excluded from the statement of cash flows and totaled approximately $235 million at March 31, 2020, and $224 million at December 31, 2019. |
Receivables, Net
Receivables, Net | 3 Months Ended |
Mar. 31, 2020 | |
Receivables, Net | |
Receivables, Net | 8. Receivables, Net March 31, December 31, ($ in millions) 2020 2019 Trade accounts receivable $ 865 $ 647 Unbilled receivables 558 556 Less allowance for doubtful accounts (6) (17) Net trade accounts receivable 1,417 1,186 Other receivables 445 445 $ 1,862 $ 1,631 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 March 31, 2020, and $1.4 billion at December 31, 2019. A total of $202 million and $230 million were available for sale under these programs as of March 31, 2020, and December 31, 2019, respectively. Other receivables include income and sales tax receivables, related party receivables and other miscellaneous receivables. |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2020 | |
Inventories, Net | |
Inventories, Net | 9. Inventories, Net March 31, December 31, ($ in millions) 2020 2019 Raw materials and supplies $ 827 $ 808 Work-in-process and finished goods 613 548 Less: Inventory reserves (86) (82) $ 1,354 $ 1,274 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment, Net. | |
Property, Plant and Equipment, Net | 10. Property, Plant and Equipment, Net March 31, December 31, ($ in millions) 2020 2019 Land $ 151 $ 153 Buildings 1,425 1,433 Machinery and equipment 5,467 5,513 Construction-in-progress 591 434 7,634 7,533 Accumulated depreciation (3,135) (3,063) $ 4,499 $ 4,470 Depreciation expense amounted to $124 million and $122 million for the three months ended March 31, 2020 and 2019, respectively. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets, Net | |
Goodwill | 11. Goodwill ($ in millions) Beverage Beverage Beverage Aerospace Other Total Balance at December 31, 2019 $ 1,275 $ 1,500 $ 1,298 $ 40 $ 306 $ 4,419 Goodwill impairment — — — — (62) (62) Effects of currency exchange — (67) — — (20) (87) Balance at March 31, 2020 $ 1,275 $ 1,433 $ 1,298 $ 40 $ 224 $ 4,270 Goodwill in the above table is presented net of accumulated impairment losses of $62 million as of March 31, 2020. As discussed in Note 3, effective January 1, 2020, Ball changed how its former operating segments composed of beverage packaging operations located in Africa, Middle East and Asia (beverage packaging, AMEA), and beverage packaging, Asia Pacific, are being managed and reported. These operating segments had goodwill balances of $102 million and $27 million, respectively, as of December 31, 2019. As shown in the table above, goodwill by segment has been retrospectively adjusted to conform to the current year presentation. Using a relative fair value allocation approach, goodwill of $67 million was allocated to the beverage packaging, EMEA, reportable segment and $62 million of goodwill was allocated to the beverage packaging, other, operating segment. In the first quarter of 2020, the company recorded a non-cash impairment charge of $62 million related to the goodwill associated with the new beverage packaging, other, reporting unit as the carrying amount of this reporting unit exceeded its fair value. The impairment review was triggered by the restructuring of the company’s reporting units as part of the aforementioned changes in segment management and internal reporting structure. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets, Net | |
Intangible Assets, Net | 12. Intangible Assets, Net March 31, December 31, ($ in millions) 2020 2019 Acquired Rexam customer relationships and other Rexam intangibles (net of accumulated amortization of $591 million at March 31, 2020, and $567 million at December 31, 2019) $ 1,829 $ 1,909 Capitalized software (net of accumulated amortization of $175 million at March 31, 2020, and $170 million at December 31, 2019) 64 69 Other intangibles (net of accumulated amortization of $115 million at March 31, 2020, and $116 million at December 31, 2019) 21 24 $ 1,914 $ 2,002 Total amortization expense of intangible assets amounted to $45 million and $48 million for the three months ended March 31, 2020 and 2019, respectively. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2020 | |
Other Assets.. | |
Other Assets. | 13. Other Assets March 31, December 31, ($ in millions) 2020 2019 Long-term deferred tax assets $ 264 $ 241 Long-term pension assets 414 437 Investments in affiliates 289 291 Right-of-use operating lease assets 261 239 Other 393 377 $ 1,621 $ 1,585 In the first quarter of 2020, the shareholders of Ball Metalpack provided additional equity contributions and loans to Ball Metalpack, of which Ball's share was $30 million, which resulted in Ball recognizing previously unrecorded equity method losses associated with prior periods. These losses are presented in equity in results of affiliates, net of tax, in the company’s unaudited condensed consolidated statement of earnings. Ball is under no obligation to provide additional equity contributions or loans to Ball Metalpack. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases | |
Leases | 14. Leases The company enters into operating leases for buildings, warehouses, office equipment, production equipment, aircraft, land and other types of equipment. The company also enters into finance leases for certain plant equipment. Supplemental balance sheet information related to the company’s leases follows: ($ in millions) Balance Sheet Location March 31, 2020 December 31, 2019 Operating leases: Operating lease ROU asset Other assets $ 261 $ 239 Current operating lease liabilities Other current liabilities 59 58 Noncurrent operating lease liabilities Other liabilities 194 181 Finance leases: Finance lease ROU assets, net Property, plant and equipment, net $ 8 — Current finance lease liabilities Short-term debt and current portion of long-term debt 1 — Noncurrent finance lease liabilities Long-term debt 7 — |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt | |
Debt | 15. Debt Long-term debt consisted of the following: March 31, December 31, ($ in millions) 2020 2019 Senior Notes 4.375% due December 2020 $ — $ 1,000 3.50%, euro denominated, due December 2020 — 449 5.00% due March 2022 750 750 4.00% due November 2023 1,000 1,000 4.375%, euro denominated, due December 2023 772 785 0.875%, euro denominated, due March 2024 827 841 5.25% due July 2025 1,000 1,000 4.875% due March 2026 750 750 1.50%, euro denominated, due March 2027 607 617 Senior Credit Facility (at variable rates) Multi-currency revolver due March 2024 780 — Term A loan, due March 2024 653 653 U.S. dollar revolver due March 2024 381 — Other (including debt issuance costs) (39) (54) 7,481 7,791 Less: Current portion of long-term debt (5) (1,454) $ 7,476 $ 6,337 The company’s senior credit facilities include long-term multi-currency revolving facilities that mature in March 2024. The revolving facilities provide the company with up to the U.S. dollar equivalent of $1.75 billion. At March 31, 2020, taking into account outstanding letters of credit, approximately $555 million was available under the company’s existing long-term, revolving credit facilities. In addition to these facilities, the company had approximately $1.1 billion of short-term uncommitted credit facilities available at March 31, 2020, of which $517 million was outstanding and due on demand. At December 31, 2019, the company had $26 million outstanding under short-term uncommitted credit facilities. In January 2020, Ball redeemed the outstanding euro-denominated 3.50% senior notes due in 2020 in the amount of €400 million and the outstanding 4.375% senior notes due in 2020 in the amount of $1 billion. The company recorded debt extinguishment costs of $40 million related to this redemption during the three months ended March 31, 2020. The fair value of long-term debt was estimated to be $7.6 billion at March 31, 2020, and $8.3 billion at December 31, 2019. The fair value reflects the market rates at each period end for debt with credit ratings similar to the company’s ratings and is classified as Level 2 within the fair value hierarchy. Rates currently available to the company for loans with similar terms and maturities are used to estimate the fair value of long-term debt based on discounted cash flows. The 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 of the company’s debt covenants requires the company to maintain a leverage ratio (as defined) of no greater than 4.5 times. The company was in compliance with all loan agreements and debt covenants at March 31, 2020, and December 31, 2019, and has met all debt payment obligations. |
Taxes on Income
Taxes on Income | 3 Months Ended |
Mar. 31, 2020 | |
Taxes on Income | |
Taxes on Income | 16. Taxes on Income The company’s effective tax rate was negative 9.1 percent and 7.1 percent for the three months ended March 31, 2020 and 2019, respectively. As compared to the statutory U.S. tax rate, the effective tax rate for the three months ended March 31, 2020, was reduced by 51 percentage points for the benefit of share-based compensation, reduced by 13.8 percentage points for the benefit of losses in equity in results of affiliates, reduced by 8.9 percentage points for foreign rate differences net of foreign withholding tax, increased by 35.3 percentage points for the impact of the beverage packaging, other goodwill impairment, and increased by 11.1 percentage points for the impact of revaluing certain deferred tax assets due to fluctuations in foreign currency exchange rates. Also, as compared to the statutory tax rate, the effective tax rate for the three months ended March 31, 2019, was reduced by 11.3 percentage points for the benefit of share-based compensation, reduced by 2.7 percentage points for the benefit of losses in equity in results of affiliates and increased by 1.1 percentage points for the impact of global intangible low-taxed income (GILTI) net of foreign derived intangible income (FDII). |
Employee Benefit Obligations
Employee Benefit Obligations | 3 Months Ended |
Mar. 31, 2020 | |
Employee Benefit Obligations | |
Employee Benefit Obligations | 17. Employee Benefit Obligations March 31, December 31, ($ in millions) 2020 2019 Underfunded defined benefit pension liabilities $ 929 $ 918 Less: Current portion (24) (24) Long-term defined benefit pension liabilities 905 894 Long-term retiree medical liabilities 164 156 Deferred compensation plans 333 362 Other 33 74 $ 1,435 $ 1,486 Components of net periodic benefit cost associated with the company’s defined benefit pension plans were as follows: Three Months Ended March 31, 2020 2019 ($ in millions) U.S. Foreign Total U.S. Foreign Total Ball-sponsored plans: Service cost $ 16 $ 4 $ 20 $ 12 $ 3 $ 15 Interest cost 20 14 34 25 18 43 Expected return on plan assets (31) (21) (52) (28) (28) (56) Amortization of prior service cost — 1 1 — 1 1 Recognized net actuarial loss 10 1 11 6 1 7 Total net periodic benefit cost $ 15 $ (1) $ 14 $ 15 $ (5) $ 10 Non-service pension income of $6 million for the three months ended March 31, 2020 and 2019, is included in selling, general, and administrative (SG&A) expenses. Contributions to the company’s defined benefit pension plans were $11 million for the first three months of 2020 compared to $6 million for the first three months of 2019, and such contributions are expected to be approximately $90 million for the full year of 2020. This estimate may change based on changes to the U.S. Pension Protection Act, effects of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the return achieved on actual plan assets, among other factors. In April 2020, Ball completed the purchase of non-participating group annuity contracts that were transferred to an insurance company for benefit obligations related to the certain of the company’s U.S. pension plans. The purchase will trigger settlement accounting and result in the recognition of settlement losses recorded in business consolidation and other activities that are expected to be approximately $100 million. |
Equity and Accumulated Other Co
Equity and Accumulated Other Comprehensive Earnings | 3 Months Ended |
Mar. 31, 2020 | |
Equity and Accumulated Other Comprehensive Earnings | |
Equity and Accumulated Other Comprehensive Earnings | 18. Equity and Accumulated Other Comprehensive Earnings The following tables provide additional details of the company’s equity activity: Common Stock Treasury Stock Accumulated Other Number of Number of Retained Comprehensive Noncontrolling Total ($ in millions; share amounts in thousands) Shares Amount Shares Amount Earnings Earnings (Loss) Interest Equity Balance at December 31, 2019 676,302 $ 1,178 (351,667) $ (3,122) $ 5,803 $ (910) $ 70 $ 3,019 Net earnings — — — — 23 — — 23 Other comprehensive earnings (loss), net of tax — — — — — (229) — (229) Common dividends, net of tax benefits — — — — (49) — — (49) Treasury stock purchases — — (774) (54) — — — (54) Treasury shares reissued — — 232 7 — — — 7 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 1,826 (27) — — — — — (27) Other activity — — — 10 — — — 10 Balance at March 31, 2020 678,128 $ 1,151 (352,209) $ (3,159) $ 5,777 $ (1,139) $ 70 $ 2,700 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 — — — — 117 — — 117 Other comprehensive earnings (loss), net of tax — — — — — 125 — 125 Reclassification of stranded tax effects — — — — 79 (79) — — Common dividends, net of tax benefits — — — (34) — — (34) Treasury stock purchases — — (2,634) (129) — — — (129) Treasury shares reissued — — 390 5 — — — 5 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 1,455 (3) — — — — — (3) Other activity — — — 6 1 — (1) 6 Balance at March 31, 2019 674,692 $ 1,154 (340,223) $ (2,323) $ 5,504 $ (789) $ 103 $ 3,649 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, 2019 $ (340) $ (558) $ (12) $ (910) Other comprehensive earnings (loss) before reclassifications (224) (18) 20 (222) Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings — 8 (15) (7) Balance at March 31, 2020 $ (564) $ (568) $ (7) $ (1,139) The following table provides additional details of the amounts recognized into net earnings from accumulated other comprehensive earnings (loss): Three Months Ended March 31, ($ in millions) 2020 2019 Gains (losses) on cash flow hedges: Commodity contracts recorded in net sales $ — $ 2 Commodity contracts recorded in cost of sales 4 (5) Currency exchange contracts recorded in selling, general and administrative 18 23 Cross-currency swaps recorded in interest expense (1) 4 Interest rate contracts recorded in interest expense (1) — Total before tax effect 20 24 Tax benefit (expense) on amounts reclassified into earnings (5) (6) Recognized gain (loss), net of tax $ 15 $ 18 Amortization of pension and other postretirement benefits: (a) Actuarial gains (losses) $ (11) $ (5) Total before tax effect (11) (5) Tax benefit (expense) on amounts reclassified into earnings 3 1 Recognized gain (loss), net of tax $ (8) $ (4) (a) These components include the computation of net periodic benefit cost detailed in Note 17. . |
Earnings and Dividends Per Shar
Earnings and Dividends Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings and Dividends Per Share | |
Earnings and Dividends Per Share | 19. Earnings and Dividends Per Share Three Months Ended March 31, ($ in millions, except per share amounts; shares in thousands) 2020 2019 Net earnings attributable to Ball Corporation $ 23 $ 117 Basic weighted average common shares 325,346 334,239 Effect of dilutive securities 6,980 8,437 Weighted average shares applicable to diluted earnings per share 332,326 342,676 Per basic share $ 0.07 $ 0.35 Per diluted share $ 0.07 $ 0.34 Certain outstanding options are excluded from the diluted earnings per share calculation because they are anti-dilutive (i.e., their assumed conversion into common stock would increase rather than decrease earnings per share). The options excluded totaled 1 million for the three months ended March 31, 2020 and 2019. The company declared and paid dividends of $0.15 per share in the three months ended March 31, 2020 and $0.10 per share in the three months ended March 31, 2019, respectively. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020, the company had aluminum contracts limiting its aluminum exposure with notional amounts of approximately $1.8 billion, of which $1.6 billion received hedge accounting treatment. Cash flow hedges relate to forecasted transactions that will occur within the next two years . Included in shareholders’ equity at March 31, 2020, within accumulated other comprehensive earnings (loss), is a net after-tax loss of $42 million associated with these contracts. A net loss of $34 million is expected to be recognized in earnings during the next 12 months, the majority of which will be offset by pricing changes in sales and purchase contracts, thus resulting in little or no earnings impact to Ball. 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 March 31, 2020, the company had outstanding interest rate swap and option contracts with notional amounts of approximately $968 million paying fixed rates expiring within the next two years. Approximately $1 million of net after-tax loss related to this contract is included in accumulated other comprehensive earnings at March 31, 2020, and is expected to be recognized in earnings during the next 12 months 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 March 31, 2020, the company had outstanding exchange rate forward and option contracts with notional amounts totaling approximately $2.8 billion. Approximately $38 million of net after-tax gain related to these contracts is included in accumulated other comprehensive earnings at March 31, 2020, of which a net gain of $13 million is expected to be recognized in earnings during the next 12 months. The contracts outstanding at March 31, 2020, 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. The company fully settled this contract during 2019. Approximately $2 million of net after-tax loss related to this contract is included in accumulated other comprehensive earnings at March 31, 2020, and is expected to be recognized in earnings during the next 12 months. 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 2.8 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 March 31, 2020, and December 31, 2019, the aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position was $83 million and $35 million, respectively, and no collateral was required to be posted. Fair Value Measurements Ball has classified all applicable financial derivative assets and liabilities as Level 2 within the fair value hierarchy as of March 31, 2020, and December 31, 2019, and presented those values in the tables below. The company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. March 31, 2020 ($ in millions) Balance Sheet Location Derivatives Derivatives not Total Assets: Commodity contracts $ 60 $ 10 $ 70 Foreign currency contracts — 12 12 Other contracts — 19 19 Total current derivative contracts Other current assets $ 60 $ 41 $ 101 Foreign currency contracts $ 76 $ 2 $ 78 Total noncurrent derivative contracts Other noncurrent assets $ 76 $ 2 $ 78 Liabilities: Commodity contracts $ 100 $ 4 $ 104 Foreign currency contracts 5 37 42 Other contracts 1 12 13 Total current derivative contracts Other current liabilities $ 106 $ 53 $ 159 Commodity contracts $ 9 $ — $ 9 Foreign currency contracts — 1 1 Total noncurrent derivative contracts Other noncurrent liabilities $ 9 $ 1 $ 10 December 31, 2019 Derivatives Derivatives not Total Assets: Commodity contracts $ 7 $ 1 $ 8 Foreign currency contracts 4 43 47 Other contracts 2 — 2 Total current derivative contracts Other current assets $ 13 $ 44 $ 57 Foreign currency contracts $ 15 $ — $ 15 Other contracts 1 — 1 Total noncurrent derivative contracts Other noncurrent assets $ 16 $ — $ 16 Liabilities: Commodity contracts $ 26 $ 1 $ 27 Foreign currency contracts — 18 18 Other contracts — 19 19 Total current derivative contracts Other current liabilities $ 26 $ 38 $ 64 Commodity contracts $ 1 $ — $ 1 Total noncurrent derivative contracts Other noncurrent liabilities $ 1 $ — $ 1 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, from a reliable observable market source or from third-party software. 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. The present value discounting factor is based on the comparable time period LIBOR rate or 12-month LIBOR. Ball performs validations of the company’s internally derived fair values reported for the company’s financial instruments on a quarterly basis utilizing counterparty valuation statements. The company additionally evaluates counterparty creditworthiness and, as of March 31, 2020, has not identified any circumstances requiring the reported values of the company’s financial instruments be adjusted. The following table provides the effects of derivative instruments in the consolidated statement of earnings and on accumulated other comprehensive earnings (loss): Three Months Ended March 31, 2020 2019 ($ 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 $ — $ 1 $ 2 $ — Commodity contracts - manage exposure to supplier pricing Cost of sales 4 (1) (5) 1 Interest rate contracts - manage exposure for outstanding debt Interest expense (1) 1 — — Foreign currency contracts - manage currency exposure Selling, general and administrative 18 22 — 58 Cross-currency swaps - manage intercompany currency exposure Selling, general and administrative (1) — 23 — Cross-currency swaps - manage intercompany currency exposure Interest expense — — 4 — Equity contracts Selling, general and administrative — (2) — 30 Total $ 20 $ 21 $ 24 $ 89 The changes in accumulated other comprehensive earnings (loss) for derivatives designated as hedges were as follows: Three Months Ended March 31, ($ in millions) 2020 2019 Amounts reclassified into earnings: Commodity contracts $ (4) $ 3 Cross-currency swap contracts 1 (27) Interest rate contracts 1 — Currency exchange contracts (18) — Change in fair value of cash flow hedges: Commodity contracts (30) 14 Interest rate contracts (2) — Cross-currency swap contracts 1 43 Currency exchange contracts 58 (2) Foreign currency and tax impacts (2) (9) Stranded tax effects reclassified into retained earnings: Commodity contracts — 2 Cross-currency swap contracts — (5) $ 5 $ 19 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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, the company has 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 March 31, 2020. 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 at this time, the company does not believe that this matter will have a material adverse effect upon its liquidity, results of operations or financial condition. 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. Crown filed its appeal brief on February 4, 2020, and BMBCC’s reply brief was filed on May 5, 2020. Based on the information available at the present time, the company does not believe that this matter will have a material adverse effect upon its liquidity, results of operations or financial condition. 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 at this time, the company does not believe that this matter will have a material adverse effect upon its liquidity, results of operations or financial condition. 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 were determined to be estimable and realizable, the company recorded $57 million of prior year collections in business consolidation and other activities within the company’s second quarter 2019 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 | 3 Months Ended |
Mar. 31, 2020 | |
Indemnifications and Guarantees | |
Indemnifications and Guarantees | 22. Indemnifications and Guarantees General Guarantees The company or its appropriate consolidated direct or indirect subsidiaries, including Rexam and its subsidiaries, have made certain indemnities, commitments and guarantees under which the specified entity may be required to make payments in relation to certain transactions. These indemnities, commitments and guarantees include indemnities to the customers of the subsidiaries in connection with the sales of their packaging and aerospace products and services; guarantees to suppliers of subsidiaries of the company guaranteeing the performance of the respective entity under a purchase agreement, construction contract, renewable energy purchase 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 combined summarized financial information of the issuer of the company’s senior notes and the subsidiaries that guarantee the notes (the obligor group) is presented within Item 2 of this report. |
Accounting Pronouncements (Poli
Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Pronouncements | |
Recently Adopted Accounting Standards | 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 was applied prospectively on January 1, 2020, and did not have a material effect on the company’s unaudited condensed 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 is 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. Ball adopted this guidance and all related amendments on January 1, 2020, applying the modified retrospective method, and this adoption did not have a material effect on the company’s unaudited condensed consolidated financial statements. |
New Accounting Guidance | Income Tax Simplification In December 2019, accounting guidance was issued to simplify the accounting for income taxes. The guidance is effective for Ball on January 1, 2021, and the company is currently assessing the impact that the adoption of this new guidance will have on its consolidated financial statements. |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Segment Information | |
Summary of business by segment | Three Months Ended March 31, ($ in millions) 2020 2019 Net sales Beverage packaging, North and Central America $ 1,181 $ 1,131 Beverage packaging, EMEA 669 684 Beverage packaging, South America 405 441 Aerospace 432 328 Reportable segment sales 2,687 2,584 Other 98 201 Net sales $ 2,785 $ 2,785 Comparable operating earnings Beverage packaging, North and Central America $ 146 $ 118 Beverage packaging, EMEA 68 74 Beverage packaging, South America 63 68 Aerospace 40 30 Reportable segment comparable operating earnings 317 290 Reconciling items Other (a) (10) (15) Business consolidation and other activities (115) (14) Amortization of acquired Rexam intangibles (37) (40) Earnings before interest and taxes 155 221 Interest expense (71) (77) Debt refinancing and other costs (40) (4) Total interest expense (111) (81) Earnings before taxes $ 44 $ 140 (a) Includes undistributed corporate expenses, net, of $14 million and $23 million for the three months ended March 31, 2020 and 2019, respectively. |
Revenue from Contracts With C_2
Revenue from Contracts With Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer | |
Schedule of the disaggregation of revenue by timing of transfer of control | Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 ($ in millions) Point in Time Over Time Total Point in Time Over Time Total Total net sales $ 503 $ 2,282 $ 2,785 $ 557 $ 2,228 $ 2,785 |
Schedule of balances of contract liabilities | Contract Contract Liabilities Liabilities ($ in millions) (Current) (Noncurrent) Balance at December 31, 2019 87 9 Increase (decrease) 1 (1) Balance at March 31, 2020 $ 88 $ 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 March 31, 2020 $ 1,371 $ 909 $ 2,280 |
Business Consolidation and Ot_2
Business Consolidation and Other Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, ($ in millions) 2020 2019 Beverage packaging, North and Central America $ (3) $ (1) Beverage packaging, EMEA (3) 1 Beverage packaging, South America (1) (1) Other (108) (13) $ (115) $ (14) |
Supplemental Cash Flow Statem_2
Supplemental Cash Flow Statement Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Statement Disclosures | |
Schedule of cash, cash equivalents and restricted cash | March 31, ($ in millions) 2020 2019 Beginning of period: Cash and cash equivalents $ 1,798 $ 721 Current restricted cash (included in other current assets) 8 7 Total cash, cash equivalents and restricted cash $ 1,806 $ 728 End of period: Cash and cash equivalents $ 801 $ 603 Current restricted cash (included in other current assets) 10 6 Cash in assets held for sale (included in other current assets) — 63 Total cash, cash equivalents and restricted cash $ 811 $ 672 |
Receivables, Net (Tables)
Receivables, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables, Net | |
Schedule of receivables | March 31, December 31, ($ in millions) 2020 2019 Trade accounts receivable $ 865 $ 647 Unbilled receivables 558 556 Less allowance for doubtful accounts (6) (17) Net trade accounts receivable 1,417 1,186 Other receivables 445 445 $ 1,862 $ 1,631 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventories, Net | |
Schedule of inventories | March 31, December 31, ($ in millions) 2020 2019 Raw materials and supplies $ 827 $ 808 Work-in-process and finished goods 613 548 Less: Inventory reserves (86) (82) $ 1,354 $ 1,274 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment, Net. | |
Schedule of property, plant and equipment | March 31, December 31, ($ in millions) 2020 2019 Land $ 151 $ 153 Buildings 1,425 1,433 Machinery and equipment 5,467 5,513 Construction-in-progress 591 434 7,634 7,533 Accumulated depreciation (3,135) (3,063) $ 4,499 $ 4,470 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets, Net | |
Schedule of goodwill | ($ in millions) Beverage Beverage Beverage Aerospace Other Total Balance at December 31, 2019 $ 1,275 $ 1,500 $ 1,298 $ 40 $ 306 $ 4,419 Goodwill impairment — — — — (62) (62) Effects of currency exchange — (67) — — (20) (87) Balance at March 31, 2020 $ 1,275 $ 1,433 $ 1,298 $ 40 $ 224 $ 4,270 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets, Net | |
Schedule of Finite-Lived Intangible Assets | March 31, December 31, ($ in millions) 2020 2019 Acquired Rexam customer relationships and other Rexam intangibles (net of accumulated amortization of $591 million at March 31, 2020, and $567 million at December 31, 2019) $ 1,829 $ 1,909 Capitalized software (net of accumulated amortization of $175 million at March 31, 2020, and $170 million at December 31, 2019) 64 69 Other intangibles (net of accumulated amortization of $115 million at March 31, 2020, and $116 million at December 31, 2019) 21 24 $ 1,914 $ 2,002 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Assets.. | |
Schedule of other assets | March 31, December 31, ($ in millions) 2020 2019 Long-term deferred tax assets $ 264 $ 241 Long-term pension assets 414 437 Investments in affiliates 289 291 Right-of-use operating lease assets 261 239 Other 393 377 $ 1,621 $ 1,585 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases | |
Schedule of supplemental balance sheet information related to leases | ($ in millions) Balance Sheet Location March 31, 2020 December 31, 2019 Operating leases: Operating lease ROU asset Other assets $ 261 $ 239 Current operating lease liabilities Other current liabilities 59 58 Noncurrent operating lease liabilities Other liabilities 194 181 Finance leases: Finance lease ROU assets, net Property, plant and equipment, net $ 8 — Current finance lease liabilities Short-term debt and current portion of long-term debt 1 — Noncurrent finance lease liabilities Long-term debt 7 — |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt | |
Schedule of long-term debt | March 31, December 31, ($ in millions) 2020 2019 Senior Notes 4.375% due December 2020 $ — $ 1,000 3.50%, euro denominated, due December 2020 — 449 5.00% due March 2022 750 750 4.00% due November 2023 1,000 1,000 4.375%, euro denominated, due December 2023 772 785 0.875%, euro denominated, due March 2024 827 841 5.25% due July 2025 1,000 1,000 4.875% due March 2026 750 750 1.50%, euro denominated, due March 2027 607 617 Senior Credit Facility (at variable rates) Multi-currency revolver due March 2024 780 — Term A loan, due March 2024 653 653 U.S. dollar revolver due March 2024 381 — Other (including debt issuance costs) (39) (54) 7,481 7,791 Less: Current portion of long-term debt (5) (1,454) $ 7,476 $ 6,337 |
Employee Benefit Obligations (T
Employee Benefit Obligations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Employee Benefit Obligations | |
Schedule of employee benefit obligations | March 31, December 31, ($ in millions) 2020 2019 Underfunded defined benefit pension liabilities $ 929 $ 918 Less: Current portion (24) (24) Long-term defined benefit pension liabilities 905 894 Long-term retiree medical liabilities 164 156 Deferred compensation plans 333 362 Other 33 74 $ 1,435 $ 1,486 |
Components of net periodic benefit cost | Three Months Ended March 31, 2020 2019 ($ in millions) U.S. Foreign Total U.S. Foreign Total Ball-sponsored plans: Service cost $ 16 $ 4 $ 20 $ 12 $ 3 $ 15 Interest cost 20 14 34 25 18 43 Expected return on plan assets (31) (21) (52) (28) (28) (56) Amortization of prior service cost — 1 1 — 1 1 Recognized net actuarial loss 10 1 11 6 1 7 Total net periodic benefit cost $ 15 $ (1) $ 14 $ 15 $ (5) $ 10 |
Equity and Accumulated Other _2
Equity and Accumulated Other Comprehensive Earnings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity and Accumulated Other Comprehensive Earnings | |
Schedule of company's equity activity | 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, 2019 676,302 $ 1,178 (351,667) $ (3,122) $ 5,803 $ (910) $ 70 $ 3,019 Net earnings — — — — 23 — — 23 Other comprehensive earnings (loss), net of tax — — — — — (229) — (229) Common dividends, net of tax benefits — — — — (49) — — (49) Treasury stock purchases — — (774) (54) — — — (54) Treasury shares reissued — — 232 7 — — — 7 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 1,826 (27) — — — — — (27) Other activity — — — 10 — — — 10 Balance at March 31, 2020 678,128 $ 1,151 (352,209) $ (3,159) $ 5,777 $ (1,139) $ 70 $ 2,700 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 — — — — 117 — — 117 Other comprehensive earnings (loss), net of tax — — — — — 125 — 125 Reclassification of stranded tax effects — — — — 79 (79) — — Common dividends, net of tax benefits — — — (34) — — (34) Treasury stock purchases — — (2,634) (129) — — — (129) Treasury shares reissued — — 390 5 — — — 5 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 1,455 (3) — — — — — (3) Other activity — — — 6 1 — (1) 6 Balance at March 31, 2019 674,692 $ 1,154 (340,223) $ (2,323) $ 5,504 $ (789) $ 103 $ 3,649 |
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, 2019 $ (340) $ (558) $ (12) $ (910) Other comprehensive earnings (loss) before reclassifications (224) (18) 20 (222) Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings — 8 (15) (7) Balance at March 31, 2020 $ (564) $ (568) $ (7) $ (1,139) |
Information related to amounts reclassified into net earnings from accumulated other comprehensive earnings (loss) | Three Months Ended March 31, ($ in millions) 2020 2019 Gains (losses) on cash flow hedges: Commodity contracts recorded in net sales $ — $ 2 Commodity contracts recorded in cost of sales 4 (5) Currency exchange contracts recorded in selling, general and administrative 18 23 Cross-currency swaps recorded in interest expense (1) 4 Interest rate contracts recorded in interest expense (1) — Total before tax effect 20 24 Tax benefit (expense) on amounts reclassified into earnings (5) (6) Recognized gain (loss), net of tax $ 15 $ 18 Amortization of pension and other postretirement benefits: (a) Actuarial gains (losses) $ (11) $ (5) Total before tax effect (11) (5) Tax benefit (expense) on amounts reclassified into earnings 3 1 Recognized gain (loss), net of tax $ (8) $ (4) (a) These components include the computation of net periodic benefit cost detailed in Note 17. |
Earnings and Dividends Per Sh_2
Earnings and Dividends Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings and Dividends Per Share | |
Schedule of earnings per share | Three Months Ended March 31, ($ in millions, except per share amounts; shares in thousands) 2020 2019 Net earnings attributable to Ball Corporation $ 23 $ 117 Basic weighted average common shares 325,346 334,239 Effect of dilutive securities 6,980 8,437 Weighted average shares applicable to diluted earnings per share 332,326 342,676 Per basic share $ 0.07 $ 0.35 Per diluted share $ 0.07 $ 0.34 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Financial Instruments and Risk Management | |
Schedule of fair value of derivative instruments | March 31, 2020 ($ in millions) Balance Sheet Location Derivatives Derivatives not Total Assets: Commodity contracts $ 60 $ 10 $ 70 Foreign currency contracts — 12 12 Other contracts — 19 19 Total current derivative contracts Other current assets $ 60 $ 41 $ 101 Foreign currency contracts $ 76 $ 2 $ 78 Total noncurrent derivative contracts Other noncurrent assets $ 76 $ 2 $ 78 Liabilities: Commodity contracts $ 100 $ 4 $ 104 Foreign currency contracts 5 37 42 Other contracts 1 12 13 Total current derivative contracts Other current liabilities $ 106 $ 53 $ 159 Commodity contracts $ 9 $ — $ 9 Foreign currency contracts — 1 1 Total noncurrent derivative contracts Other noncurrent liabilities $ 9 $ 1 $ 10 December 31, 2019 Derivatives Derivatives not Total Assets: Commodity contracts $ 7 $ 1 $ 8 Foreign currency contracts 4 43 47 Other contracts 2 — 2 Total current derivative contracts Other current assets $ 13 $ 44 $ 57 Foreign currency contracts $ 15 $ — $ 15 Other contracts 1 — 1 Total noncurrent derivative contracts Other noncurrent assets $ 16 $ — $ 16 Liabilities: Commodity contracts $ 26 $ 1 $ 27 Foreign currency contracts — 18 18 Other contracts — 19 19 Total current derivative contracts Other current liabilities $ 26 $ 38 $ 64 Commodity contracts $ 1 $ — $ 1 Total noncurrent derivative contracts Other noncurrent liabilities $ 1 $ — $ 1 |
Schedule of impact on earnings from derivative instruments | Three Months Ended March 31, 2020 2019 ($ 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 $ — $ 1 $ 2 $ — Commodity contracts - manage exposure to supplier pricing Cost of sales 4 (1) (5) 1 Interest rate contracts - manage exposure for outstanding debt Interest expense (1) 1 — — Foreign currency contracts - manage currency exposure Selling, general and administrative 18 22 — 58 Cross-currency swaps - manage intercompany currency exposure Selling, general and administrative (1) — 23 — Cross-currency swaps - manage intercompany currency exposure Interest expense — — 4 — Equity contracts Selling, general and administrative — (2) — 30 Total $ 20 $ 21 $ 24 $ 89 |
Schedule of changes in accumulated other comprehensive earnings (loss) for effective derivatives | Three Months Ended March 31, ($ in millions) 2020 2019 Amounts reclassified into earnings: Commodity contracts $ (4) $ 3 Cross-currency swap contracts 1 (27) Interest rate contracts 1 — Currency exchange contracts (18) — Change in fair value of cash flow hedges: Commodity contracts (30) 14 Interest rate contracts (2) — Cross-currency swap contracts 1 43 Currency exchange contracts 58 (2) Foreign currency and tax impacts (2) (9) Stranded tax effects reclassified into retained earnings: Commodity contracts — 2 Cross-currency swap contracts — (5) $ 5 $ 19 |
Business Segment Information -
Business Segment Information - Summary of Business (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
Business Segment Information | ||
Number of Reportable Segments | segment | 4 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Net sales | $ 2,785 | $ 2,785 |
Reconciling items | ||
Other | (10) | (15) |
Business consolidation and other activities | (115) | (14) |
Amortization of acquired Rexam intangibles | (45) | (48) |
Earnings before interest and taxes | 155 | 221 |
Interest expense | (71) | (77) |
Debt refinancing and other costs | (40) | (4) |
Total interest expense | (111) | (81) |
Earnings before taxes | 44 | 140 |
Undistributed corporate expenses | 14 | 23 |
Depreciation and Amortization | ||
Depreciation and amortization | 169 | 170 |
Capital Expenditures | ||
Capital expenditures | 213 | 154 |
Operating Segments | ||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Net sales | 2,687 | 2,584 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Reportable segment comparable operating earnings | 317 | 290 |
Operating Segments | Beverage packaging, North And Central America | ||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Net sales | 1,181 | 1,131 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Reportable segment comparable operating earnings | 146 | 118 |
Reconciling items | ||
Business consolidation and other activities | (3) | (1) |
Operating Segments | Beverage packaging, South America | ||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Net sales | 405 | 441 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Reportable segment comparable operating earnings | 63 | 68 |
Reconciling items | ||
Business consolidation and other activities | (1) | (1) |
Operating Segments | Beverage packaging, EMEA | ||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Net sales | 669 | 684 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Reportable segment comparable operating earnings | 68 | 74 |
Reconciling items | ||
Business consolidation and other activities | (3) | 1 |
Operating Segments | Aerospace | ||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Net sales | 432 | 328 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Reportable segment comparable operating earnings | 40 | 30 |
Other | ||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Net sales | 98 | 201 |
Reconciling items | ||
Business consolidation and other activities | (108) | (13) |
Rexam | ||
Reconciling items | ||
Amortization of acquired Rexam intangibles | $ (37) | $ (40) |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Acquisitions (Details) - Tubex Industria E Comercio De Embalagens Ltda [Member] - Scenario, Plan [Member] $ in Millions | 1 Months Ended |
Mar. 31, 2020USD ($) | |
Business Acquisition [Line Items] | |
Cash consideration | $ 80 |
Additional potential consideration | $ 30 |
Additional consideration period | 3 years |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Dispositions (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2019 | Mar. 31, 2020 | Sep. 30, 2019 | |
US steel food and steel aerosol packaging | |||
Disposition | |||
Impairment of assets held for sale | $ (15) | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Steel Aerosol Packaging Business In Argentina [Member] | |||
Disposition | |||
Loss on sale of disposal group | $ 52 | ||
Charge in earnings for translation losses | $ 45 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Beverage Packaging China | |||
Disposition | |||
Loss on sale of disposal group | $ 45 | ||
Consideration for the sale of business | 213 | ||
Assets held for sale | $ 0 |
Revenue from Contracts With C_3
Revenue from Contracts With Customers - Disaggregation (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Number of reportable segments | segment | 4 | |
Total net sales | $ 2,785 | $ 2,785 |
Point in Time | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 503 | 557 |
Over Time | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 2,282 | $ 2,228 |
Revenue from Contracts With C_4
Revenue from Contracts With Customers - Contract balances (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Contract with Customer, Asset and Liability [Abstract] | |||
Contract Liabilities (Current) | $ 88 | $ 87 | |
Contract Liabilities (Noncurrent) | 8 | $ 9 | |
Increase (decrease) current contract liabilities | 1 | ||
Increase (decrease) noncurrent contract liabilities | (1) | ||
Cash received on contract liabilities | 121 | ||
Revenue recognized included in contract liabilities current | 121 | ||
Revenue recognized from opening balance of contract liabilities | 87 | ||
Revenue recognized from obligations satisfied or partially satisfied in prior periods | $ 9 | $ 6 |
Revenue from Contracts With C_5
Revenue from Contracts With Customers - Performance obligations (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation [true false] | true |
Sales expected to be recognized on multi-year contracts in place as of the end of the period | $ 2,280 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
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 | $ 1,371 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Period in which remaining performance obligations expect to be satisfied and revenue recognized | |
Sales expected to be recognized on multi-year contracts in place as of the end of the period | $ 909 |
Business Consolidation and Ot_3
Business Consolidation and Other Activities (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Oct. 31, 2019 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Business consolidation and other activities | ||||
Business consolidation and other activities | $ (115) | $ (14) | ||
Individually insignificant activities | 13 | |||
Gain related to indirect tax contingencies | $ 57 | |||
Reversal of previously recorded expenses related to facilities closure | 11 | |||
Beverage packaging China | ||||
Business consolidation and other activities | ||||
Charges related to facilities closure | 13 | |||
Beverage packaging China | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Business consolidation and other activities | ||||
Loss on sale of disposal group | 23 | |||
US steel food and steel aerosol packaging | ||||
Business consolidation and other activities | ||||
Impairment of assets held for sale | 15 | |||
Steel Aerosol Packaging Business In Argentina [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Business consolidation and other activities | ||||
Loss on sale of disposal group | $ (52) | |||
Charge in earnings for translation losses | $ 45 | |||
Rexam | ||||
Business consolidation and other activities | ||||
Acquisition costs | 6 | |||
Operating Segments | Beverage packaging, North And Central America | ||||
Business consolidation and other activities | ||||
Business consolidation and other activities | (3) | (1) | ||
Charges related to facilities closure | 3 | |||
Individually insignificant activities | 1 | |||
Operating Segments | Beverage packaging, South America | ||||
Business consolidation and other activities | ||||
Business consolidation and other activities | (1) | (1) | ||
Individually insignificant activities | 1 | 1 | ||
Operating Segments | Beverage packaging, EMEA | ||||
Business consolidation and other activities | ||||
Business consolidation and other activities | (3) | 1 | ||
Charges related to facilities closure | 3 | |||
Individually insignificant activities | 1 | |||
Operating Segments | Beverage packaging, EMEA | Recklinghausen, Germany facility | Employee Severance And Benefits | ||||
Business consolidation and other activities | ||||
Charges related to facilities closure | 2 | |||
Other | ||||
Business consolidation and other activities | ||||
Business consolidation and other activities | (108) | $ (13) | ||
Impairment of goodwill | $ 62 |
Supplemental Cash Flow Statem_3
Supplemental Cash Flow Statement Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Cash, Cash Equivalents and Restricted Cash | ||||
Cash and cash equivalents | $ 801 | $ 1,798 | $ 603 | $ 721 |
Current restricted cash | $ 10 | 8 | $ 6 | 7 |
Location of current restricted cash | us-gaap:OtherAssetsCurrent | us-gaap:OtherAssetsCurrent | ||
Cash in assets held for sale | $ 63 | |||
Total cash, cash equivalents and restricted cash | $ 811 | 1,806 | $ 672 | $ 728 |
Other Non-cash items | ||||
PP&E acquired but not yet paid | $ 235 | $ 224 |
Receivables, Net (Details)
Receivables, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Receivables, Net | ||
Trade accounts receivable | $ 865 | $ 647 |
Unbilled receivables | 558 | 556 |
Less allowances for doubtful accounts | (6) | (17) |
Net trade accounts receivable | 1,417 | 1,186 |
Other receivables | 445 | 445 |
Receivables, net | 1,862 | 1,631 |
Maximum available sale of the accounts receivables under factoring program | 1,300 | 1,400 |
Amount of accounts receivable available for sale under the factoring program | $ 202 | $ 230 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventories, Net | ||
Raw materials and supplies | $ 827 | $ 808 |
Work-in-process and finished goods | 613 | 548 |
Less inventory reserves | (86) | (82) |
Inventories, net | $ 1,354 | $ 1,274 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 7,634 | $ 7,533 | |
Accumulated depreciation | (3,135) | (3,063) | |
Net property, plant and equipment | 4,499 | 4,470 | |
Depreciation expense | 124 | $ 122 | |
Land | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 151 | 153 | |
Buildings | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 1,425 | 1,433 | |
Machinery and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 5,467 | 5,513 | |
Construction-in-progress | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 591 | $ 434 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Mar. 31, 2020 | Mar. 31, 2020 |
Goodwill | |||
Balance at the beginning of the period | $ 4,419 | $ 4,419 | |
Business disposition | (62) | ||
Effects of currency exchange | (87) | ||
Balance at the end of the period | 4,270 | ||
Accumulated impairment, goodwill | $ 62 | ||
Goodwill | 4,419 | 4,419 | 4,270 |
Beverage packaging, North And Central America | |||
Goodwill | |||
Balance at the beginning of the period | 1,275 | 1,275 | |
Balance at the end of the period | 1,275 | ||
Goodwill | 1,275 | 1,275 | 1,275 |
Beverage packaging, South America | |||
Goodwill | |||
Balance at the beginning of the period | 1,298 | 1,298 | |
Balance at the end of the period | 1,298 | ||
Goodwill | 1,298 | 1,298 | 1,298 |
Beverage packaging, EMEA | |||
Goodwill | |||
Balance at the beginning of the period | 1,500 | 1,500 | |
Effects of currency exchange | (67) | ||
Balance at the end of the period | 1,433 | ||
Opening balance sheet adjustments | 67 | ||
Goodwill | 1,500 | 1,433 | 1,433 |
Aerospace | |||
Goodwill | |||
Balance at the beginning of the period | 40 | 40 | |
Balance at the end of the period | 40 | ||
Goodwill | 40 | 40 | 40 |
Ball Beverage Packaging Amea Limited [Member] | |||
Goodwill | |||
Opening balance sheet adjustments | (102) | ||
Beverage Packaging Asia [Member] | |||
Goodwill | |||
Opening balance sheet adjustments | (27) | ||
Other | |||
Goodwill | |||
Balance at the beginning of the period | 306 | 306 | |
Business disposition | (62) | ||
Effects of currency exchange | (20) | ||
Balance at the end of the period | 224 | ||
Opening balance sheet adjustments | 62 | ||
Impairment of goodwill | 62 | ||
Goodwill | $ 306 | $ 224 | $ 224 |
Intangibles Assets, Net (Detail
Intangibles Assets, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Total annual intangible asset amortization expense | |||
Acquired intangible assets, net of accumulated amortization | $ 21 | $ 24 | |
Accumulated amortization | 115 | 116 | |
Capitalized software (net of accumulated amortization) | 64 | 69 | |
Accumulated amortization - capitalized software | 175 | 170 | |
Total intangible assets, net | 1,914 | 2,002 | |
Amortization of Intangible Assets | 45 | $ 48 | |
Rexam | |||
Total annual intangible asset amortization expense | |||
Acquired intangible assets, net of accumulated amortization | 1,829 | 1,909 | |
Accumulated amortization | 591 | $ 567 | |
Amortization of Intangible Assets | $ 37 | $ 40 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Other assets | ||
Long-term deferred tax assets | $ 264 | $ 241 |
Long-term pension assets | 414 | 437 |
Investments in affiliates | 289 | 291 |
Right-of-use operating lease assets | 261 | 239 |
Other | 393 | 377 |
Other Assets | 1,621 | $ 1,585 |
Share of equity method losses | $ 30 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Supplemental balance sheet information | ||
Balance sheet location for assets | us-gaap:OtherAssetsMember | |
Operating lease right-of-use assets | $ 261 | $ 239 |
Balance sheet location for current liabilities | us-gaap:OtherCurrentLiabilitiesMember | |
Current operating lease liabilities | $ 59 | 58 |
Balance sheet location for non-current liabilities | us-gaap:OtherLiabilitiesMember | |
Noncurrent operating lease liabilities | $ 194 | $ 181 |
Finance Lease, Right-of-Use Asset | $ 8 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Net | |
Finance Lease, Liability, Current | $ 1 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Short Term Borrowings and Long Term debt, Current | |
Finance Lease, Liability, Noncurrent | $ 7 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term Debt, Excluding Current Maturities |
Debt - Long term debt (Details)
Debt - Long term debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 31, 2020 | Dec. 31, 2019 |
Long-term debt | |||
Other (including debt issuance costs) | $ (39) | $ (54) | |
Long-term debt, Total | 7,481 | 7,791 | |
Less: Current portion of long-term debt | (5) | (1,454) | |
Long-term debt excluding current maturities | $ 7,476 | 6,337 | |
Senior Notes 4.375 percent, due December 2020 | |||
Long-term debt | |||
Long-term Debt, Gross | 1,000 | ||
Interest rate (as a percent) | 4.375% | 4.375% | |
Senior Notes 3.50 Percent, euro denominated, due December 2020 | |||
Long-term debt | |||
Long-term Debt, Gross | 449 | ||
Interest rate (as a percent) | 3.50% | 3.50% | |
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 4.00 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 | $ 772 | 785 | |
Interest rate (as a percent) | 4.375% | ||
Senior Notes 0.875 Percent, euro denominated, due March 2024 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 827 | 841 | |
Interest rate (as a percent) | 0.875% | ||
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 4.875 Percent, due March 2026 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 750 | 750 | |
Interest rate (as a percent) | 4.875% | ||
Senior Notes 1.50 Percent, euro denominated, due March 2027 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 607 | 617 | |
Interest rate (as a percent) | 1.50% | ||
Multi-currency U.S. dollar revolver, due March 2024 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 780 | ||
Term A loan, due June 2024 | |||
Long-term debt | |||
Long-term Debt, Gross | 653 | $ 653 | |
U.S. dollar revolver, due March 2024 at variable rate | |||
Long-term debt | |||
Long-term Debt, Gross | $ 381 |
Debt - Activity (Details)
Debt - Activity (Details) € in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2020USD ($) | Jan. 31, 2020EUR (€) | Jan. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Revolving credit facility | ||||
Debt extinguishment costs | $ 40 | |||
Senior Notes 0.875 Percent, euro denominated, due March 2024 | ||||
Long-term debt | ||||
Interest rate (as a percent) | 0.875% | |||
Senior Notes 1.50 Percent, euro denominated, due March 2027 | ||||
Long-term debt | ||||
Interest rate (as a percent) | 1.50% | |||
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 | 555,000 | |||
Short-term uncommitted credit facilities | ||||
Revolving credit facility | ||||
Available borrowing capacity under line of credit facility | 1,100 | |||
Amount of credit facility outstanding and due on demand | $ 517 | $ 26 | ||
Senior Notes 3.50 Percent, euro denominated, due December 2020 | ||||
Long-term debt | ||||
Face amount of debt | € | € 400 | |||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | |
Senior Notes 4.375 percent, due December 2020 | ||||
Long-term debt | ||||
Face amount of debt | $ 1,000 | |||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% |
Debt - FV, Maturities, etc. (De
Debt - FV, Maturities, etc. (Details) $ in Billions | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Long term debt value | ||
Leverage ratio, maximum | 4.5 | |
Level 2 | ||
Long term debt value | ||
Fair value of the long-term debt | $ 7.6 | $ 8.3 |
Taxes on Income (Details)
Taxes on Income (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Effective income tax changes by percentage | ||
Effective tax rate expressed as a percentage of pre-tax earnings | (9.10%) | 7.10% |
Effective income tax rate reduction for by expense in share based compensation | 51.00% | 11.30% |
Effective income tax rate increase for impact of foreign tax rate differential, net of valuation allowance impact, and tax holidays | 8.90% | |
Effective income tax rate increase for impact of GILTI, net of FDII | 1.10% | |
Effective income tax rate (increase) reduction for equity in results of affiliates loss | 13.80% | (2.70%) |
Effective income tax rate increase for goodwill impairment | 35.30% | |
Effective income tax rate increase for impact of foreign currency fluctuations on deferred tax assets in Brazil | 11.10% |
Employee Benefit Obligations -
Employee Benefit Obligations - Total (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Employee Benefit Obligations | ||
Underfunded defined benefit pension liabilities | $ 929 | $ 918 |
Less current portion | (24) | (24) |
Long-term defined benefit pension liabilities | 905 | 894 |
Long-term retiree medical liabilities | 164 | 156 |
Deferred compensation plans | 333 | 362 |
Other | 33 | 74 |
Total non-current employee benefit obligations | $ 1,435 | $ 1,486 |
Employee Benefit Obligations _2
Employee Benefit Obligations - Components of net periodic benefit cost (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Selling, general and administrative | |||
Ball-sponsored plans: | |||
Non-service pension income | $ 6 | $ 6 | |
Forecast | |||
Ball-sponsored plans: | |||
Noncash charge for settlement | $ 100 | ||
Defined Benefit Pension Plans | |||
Ball-sponsored plans: | |||
Total net periodic benefit cost | 14 | 10 | |
Contributions to pension plans | 11 | 6 | |
Expected contributions to pension plans for the full year | 90 | ||
Defined Benefit Pension Plans | Ball Sponsored Plans | |||
Ball-sponsored plans: | |||
Service cost | 20 | 15 | |
Interest cost | 34 | 43 | |
Expected return on plan assets | (52) | (56) | |
Amortization of prior service cost | 1 | 1 | |
Recognized net actuarial loss | 11 | 7 | |
U.S. | Defined Benefit Pension Plans | |||
Ball-sponsored plans: | |||
Total net periodic benefit cost | 15 | 15 | |
U.S. | Defined Benefit Pension Plans | Ball Sponsored Plans | |||
Ball-sponsored plans: | |||
Service cost | 16 | 12 | |
Interest cost | 20 | 25 | |
Expected return on plan assets | (31) | (28) | |
Recognized net actuarial loss | 10 | 6 | |
Foreign | Defined Benefit Pension Plans | |||
Ball-sponsored plans: | |||
Total net periodic benefit cost | (1) | (5) | |
Foreign | Defined Benefit Pension Plans | Ball Sponsored Plans | |||
Ball-sponsored plans: | |||
Service cost | 4 | 3 | |
Interest cost | 14 | 18 | |
Expected return on plan assets | (21) | (28) | |
Amortization of prior service cost | 1 | 1 | |
Recognized net actuarial loss | $ 1 | $ 1 |
Equity and Accumulated Other _3
Equity and Accumulated Other Comprehensive Earnings - Equity activity (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity | ||
Balance at beginning of the period | $ 3,019 | $ 3,562 |
Net earnings | 23 | 117 |
Other comprehensive earnings (loss), net of tax, excluding currency translation on assets transferred to held for sale | (229) | 125 |
Common dividends, net of tax benefits | (49) | (34) |
Treasury stock purchases | (54) | (129) |
Treasury shares reissued | 7 | 5 |
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | (27) | (3) |
Other activity | 10 | 6 |
Balance at end of the period | 2,700 | 3,649 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance at beginning of the period | $ 1,178 | $ 1,157 |
Balance (in shares) | 676,302 | 673,237 |
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | $ (27) | $ (3) |
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged (in shares) | 1,826 | 1,455 |
Balance at end of the period | $ 1,151 | $ 1,154 |
Balance (in shares) | 678,128 | 674,692 |
Treasury Stock, Common | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance at beginning of the period | $ (3,122) | $ (2,205) |
Balance (in shares) | 351,667 | 337,979 |
Treasury stock purchases | $ (54) | $ (129) |
Treasury stock purchases (in shares) | (774) | (2,634) |
Treasury shares reissued | $ 7 | $ 5 |
Treasury shares reissued (in shares) | 232 | 390 |
Other activity | $ 10 | $ 6 |
Balance at end of the period | $ (3,159) | $ (2,323) |
Balance (in shares) | 352,209 | 340,223 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance at beginning of the period | $ 5,803 | $ 5,341 |
Net earnings | 23 | 117 |
Reclassification of stranded tax effects | 79 | |
Common dividends, net of tax benefits | (49) | (34) |
Other activity | 1 | |
Balance at end of the period | 5,777 | 5,504 |
Accumulated Other Comprehensive Earnings (Loss). | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance at beginning of the period | (910) | (835) |
Other comprehensive earnings (loss), net of tax, excluding currency translation on assets transferred to held for sale | (229) | 125 |
Reclassification of stranded tax effects | (79) | |
Balance at end of the period | (1,139) | (789) |
Noncontrolling Interest | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance at beginning of the period | 70 | 104 |
Other activity | (1) | |
Balance at end of the period | $ 70 | $ 103 |
Equity and Accumulated Other _4
Equity and Accumulated Other Comprehensive Earnings - AOCI Activity (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Accumulated Other Comprehensive Earnings (Loss) | |
Stockholders' Equity Attributable to Parent, Beginning Balance | $ 2,949 |
Stockholders' Equity Attributable to Parent, Ending Balance | 2,630 |
Foreign Currency Translation | |
Accumulated Other Comprehensive Earnings (Loss) | |
Stockholders' Equity Attributable to Parent, Beginning Balance | (340) |
Other comprehensive earnings (loss) before reclassifications | (224) |
Stockholders' Equity Attributable to Parent, Ending Balance | (564) |
Pension and Other Postretirement Benefits (Net of Tax) | |
Accumulated Other Comprehensive Earnings (Loss) | |
Stockholders' Equity Attributable to Parent, Beginning Balance | (558) |
Other comprehensive earnings (loss) before reclassifications | (18) |
Reclassification of stranded tax effects | 8 |
Stockholders' Equity Attributable to Parent, Ending Balance | (568) |
Effective Derivatives (Net of Tax) | |
Accumulated Other Comprehensive Earnings (Loss) | |
Stockholders' Equity Attributable to Parent, Beginning Balance | (12) |
Other comprehensive earnings (loss) before reclassifications | 20 |
Reclassification of stranded tax effects | (15) |
Stockholders' Equity Attributable to Parent, Ending Balance | (7) |
Accumulated Other Comprehensive Earnings (Loss). | |
Accumulated Other Comprehensive Earnings (Loss) | |
Stockholders' Equity Attributable to Parent, Beginning Balance | (910) |
Other comprehensive earnings (loss) before reclassifications | (222) |
Reclassification of stranded tax effects | (7) |
Stockholders' Equity Attributable to Parent, Ending Balance | $ (1,139) |
Equity and Accumulated Other _5
Equity and Accumulated Other Comprehensive Earnings - AOCI Additional Details (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Gains (losses) on cash flow hedges | ||
Net sales | $ 2,785 | $ 2,785 |
Cost of sales (excluding depreciation and amortization) | (2,215) | (2,253) |
Selling, general and administrative | (131) | (127) |
Business consolidation and other activities | (115) | (14) |
Earnings before taxes | 44 | 140 |
Tax benefit (expense) on amounts reclassified into earnings | 4 | (10) |
Net earnings | 23 | 117 |
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||
Gains (losses) on cash flow hedges | ||
Earnings before taxes | 20 | 24 |
Tax benefit (expense) on amounts reclassified into earnings | (5) | (6) |
Net earnings | 15 | 18 |
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Commodity contracts | ||
Gains (losses) on cash flow hedges | ||
Net sales | 2 | |
Cost of sales (excluding depreciation and amortization) | 4 | (5) |
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) | |
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 | 18 | 23 |
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Cross-currency swap | ||
Gains (losses) on cash flow hedges | ||
Interest expense | (1) | 4 |
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 | (11) | (5) |
Tax benefit (expense) on amounts reclassified into earnings | 3 | 1 |
Recognized gain (loss), net of tax | (8) | (4) |
Actuarial gains (losses) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||
Amortization Of Pension And Other Postretirement Benefits: | ||
Total before tax effect | $ (11) | $ (5) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings and Dividends Per Share | ||
Net earnings attributable to Ball Corporation | $ 23 | $ 117 |
Basic weighted average common shares | 325,346 | 334,239 |
Effect of dilutive securities (in shares) | 6,980 | 8,437 |
Weighted average shares applicable to diluted earnings per share | 332,326 | 342,676 |
Per basic share (in dollars per share) | $ 0.07 | $ 0.35 |
Per diluted share (in dollars per share) | $ 0.07 | $ 0.34 |
Options excluded from EPS calculation | ||
Number of outstanding options excluded from computation of diluted earnings per share | 1,000 | 1,000 |
Dividends declared and paid | ||
Dividends paid (in dollars per share) | $ 0.15 | $ 0.10 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - General (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($)approach$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2016USD ($) | |
Financial Instruments and Risk Management | |||
Aggregate fair value of derivative instruments with credit-risk-related contingent features that were in a net liability position | $ 83 | $ 35 | |
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 | $ 1,800 | ||
Net gain (loss) expected to be recognized in the consolidated statement of earnings during the next 12 months | (34) | ||
Gain (loss) on derivatives included in AOCI, net of tax | (42) | ||
Commodity contracts | Derivatives Designated As Hedging Instruments | Cash Flow Hedging | |||
Financial Instruments and Risk Management | |||
Notional amount of derivatives | $ 1,600 | ||
Commodity contracts | Maximum | |||
Financial Instruments and Risk Management | |||
Period within which derivative will expire | 2 years | ||
Interest rate swap and option contracts | |||
Financial Instruments and Risk Management | |||
Notional amount of derivatives | $ 968,000 | ||
Net gain (loss) expected to be recognized in the consolidated statement of earnings during the next 12 months | $ (1) | ||
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 | $ 2,800 | ||
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 | $ 13 | ||
Gain (loss) on derivatives included in AOCI, net of tax | 38 | ||
Cross-currency swap | |||
Financial Instruments and Risk Management | |||
Notional amount of derivatives | $ 1,000 | ||
Gain (loss) on derivatives included in AOCI, net of tax | $ (2) | ||
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 | 2.8 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Measurements | ||
Total current derivative contracts, assets | $ 101 | $ 57 |
Total noncurrent derivative contracts, assets | 78 | 16 |
Total current derivative contracts, liabilities | 159 | 64 |
Total noncurrent derivative contracts, liabilities | 10 | 1 |
Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 70 | 8 |
Total current derivative contracts, liabilities | 104 | 27 |
Total noncurrent derivative contracts, liabilities | 9 | 1 |
Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 12 | 47 |
Total noncurrent derivative contracts, assets | 78 | 15 |
Total current derivative contracts, liabilities | 42 | 18 |
Total noncurrent derivative contracts, liabilities | 1 | |
Other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 19 | 2 |
Total noncurrent derivative contracts, assets | 1 | |
Total current derivative contracts, liabilities | 13 | 19 |
Derivatives Designated As Hedging Instruments | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 60 | 13 |
Total noncurrent derivative contracts, assets | 76 | 16 |
Total current derivative contracts, liabilities | 106 | 26 |
Total noncurrent derivative contracts, liabilities | 9 | 1 |
Derivatives Designated As Hedging Instruments | Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 60 | 7 |
Total current derivative contracts, liabilities | 100 | 26 |
Total noncurrent derivative contracts, liabilities | 9 | 1 |
Derivatives Designated As Hedging Instruments | Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 4 | |
Total noncurrent derivative contracts, assets | 76 | 15 |
Total current derivative contracts, liabilities | 5 | |
Derivatives Designated As Hedging Instruments | Other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 2 | |
Total noncurrent derivative contracts, assets | 1 | |
Total current derivative contracts, liabilities | 1 | |
Derivatives Not Designated as Hedging Instruments | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 41 | 44 |
Total noncurrent derivative contracts, assets | 2 | |
Total current derivative contracts, liabilities | 53 | 38 |
Total noncurrent derivative contracts, liabilities | 1 | |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 10 | 1 |
Total current derivative contracts, liabilities | 4 | 1 |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 12 | 43 |
Total noncurrent derivative contracts, assets | 2 | |
Total current derivative contracts, liabilities | 37 | 18 |
Total noncurrent derivative contracts, liabilities | 1 | |
Derivatives Not Designated as Hedging Instruments | Other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 19 | |
Total current derivative contracts, liabilities | $ 12 | $ 19 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Impact on Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Impact on Earnings from Derivative Instruments | ||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | $ 20 | $ 24 |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 21 | 89 |
Amounts reclassified into earnings: | ||
Commodity contracts | (4) | 3 |
Interest rate contracts | 1 | |
Cross currency swap contracts | 1 | (27) |
Currency exchange contracts | (18) | |
Change in fair value of cash flow hedges: | ||
Derivative, Gain (Loss) on Derivative, Net | 20 | 24 |
Stranded tax effects reclassified into retained earnings: | ||
Changes in accumulated other comprehensive earnings (loss) for effective derivatives | 5 | 19 |
Commodity contracts | ||
Impact on Earnings from Derivative Instruments | ||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (30) | 14 |
Change in fair value of cash flow hedges: | ||
Derivative, Gain (Loss) on Derivative, Net | (30) | 14 |
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) | 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 | 2 | |
Commodity contracts | Cost of sales | ||
Impact on Earnings from Derivative Instruments | ||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 4 | (5) |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (1) | 1 |
Change in fair value of cash flow hedges: | ||
Derivative, Gain (Loss) on Derivative, Net | 4 | (5) |
Interest rate contracts | ||
Impact on Earnings from Derivative Instruments | ||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (2) | |
Change in fair value of cash flow hedges: | ||
Derivative, Gain (Loss) on Derivative, Net | (2) | |
Interest rate contracts | Interest expense. | ||
Impact on Earnings from Derivative Instruments | ||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (1) | |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 1 | |
Change in fair value of cash flow hedges: | ||
Derivative, Gain (Loss) on Derivative, Net | (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) | 18 | |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 22 | 58 |
Change in fair value of cash flow hedges: | ||
Derivative, Gain (Loss) on Derivative, Net | 18 | |
Equity contracts | Selling, general and administrative | ||
Impact on Earnings from Derivative Instruments | ||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (2) | 30 |
Cross-currency swap | ||
Impact on Earnings from Derivative Instruments | ||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 1 | 43 |
Change in fair value of cash flow hedges: | ||
Derivative, Gain (Loss) on Derivative, Net | 1 | 43 |
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) | 4 | |
Change in fair value of cash flow hedges: | ||
Derivative, Gain (Loss) on Derivative, Net | 4 | |
Cross-currency swap | Selling, general and administrative | ||
Impact on Earnings from Derivative Instruments | ||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (1) | 23 |
Change in fair value of cash flow hedges: | ||
Derivative, Gain (Loss) on Derivative, Net | (1) | 23 |
Currency exchange contracts | ||
Impact on Earnings from Derivative Instruments | ||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 58 | (2) |
Change in fair value of cash flow hedges: | ||
Derivative, Gain (Loss) on Derivative, Net | 58 | (2) |
Foreign currency and tax impacts | ||
Impact on Earnings from Derivative Instruments | ||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (2) | (9) |
Change in fair value of cash flow hedges: | ||
Derivative, Gain (Loss) on Derivative, Net | $ (2) | $ (9) |
Contingencies (Details)
Contingencies (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |
Nov. 30, 2012item | Mar. 31, 2020USD ($)a | Jun. 30, 2019USD ($) | |
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 | ||
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 | ||
Project costs to date | $ 100 | ||
Prior year collections of ICMS amounts realizable | $ 57 | ||
Other Current Liabilities And Other Noncurrent Liabilities | |||
Environmental remediation | |||
Estimated potential liability for all environmental matters | $ 28 |
Indemnifications and Guarante_2
Indemnifications and Guarantees (Details) - First priority perfected lien or pledge | 3 Months Ended |
Mar. 31, 2020 | |
Material Wholly Owned Domestic Subsidiaries | |
Guarantees | |
Percent of capital stock pledged | 100.00% |
Material Wholly Owned First Tier Foreign Subsidiaries | |
Guarantees | |
Percent of capital stock pledged | 65.00% |
Material Wholly Owned Foreign Subsidiaries And Material Wholly Owned U S Domiciled Foreign Subsidiaries | |
Guarantees | |
Percent of capital stock pledged | 100.00% |