Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 | 9200 West 108th Circle | |
Entity Address, City or Town | Westminster | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80021 | |
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 | 326,610,304 | |
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 | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statement of Earni
Consolidated Statement of Earnings - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Consolidated Statements of Earnings | ||||
Net sales | $ 3,459 | $ 2,801 | $ 6,584 | $ 5,586 |
Costs and expenses | ||||
Cost of sales (excluding depreciation and amortization) | (2,760) | (2,230) | (5,253) | (4,445) |
Depreciation and amortization | (172) | (170) | (340) | (339) |
Selling, general and administrative | (166) | (111) | (323) | (242) |
Business consolidation and other activities | 12 | (112) | 5 | (227) |
Total costs and expenses | (3,086) | (2,623) | (5,911) | (5,253) |
Earnings before interest and taxes | 373 | 178 | 673 | 333 |
Interest expense | (66) | (67) | (133) | (138) |
Debt refinancing and other costs | (40) | |||
Total interest expense | (66) | (67) | (133) | (178) |
Earnings before taxes | 307 | 111 | 540 | 155 |
Tax (provision) benefit | (116) | (23) | (148) | (19) |
Equity in results of affiliates, net of tax | 11 | 4 | 10 | (21) |
Net earnings | 202 | 92 | 402 | 115 |
Net (earnings) loss attributable to noncontrolling interests | 2 | 2 | ||
Net earnings attributable to Ball Corporation | $ 202 | $ 94 | $ 402 | $ 117 |
Earnings per share: | ||||
Per basic share (in dollars per share) | $ 0.62 | $ 0.29 | $ 1.23 | $ 0.36 |
Per diluted share (in dollars per share) | $ 0.61 | $ 0.28 | $ 1.20 | $ 0.35 |
Weighted average shares outstanding (000s): | ||||
Basic (in shares) | 327,625 | 325,994 | 327,718 | 325,670 |
Diluted (in shares) | 333,378 | 331,717 | 333,615 | 331,884 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Consolidated Statements of Comprehensive Earnings (Loss) | ||||
Net earnings | $ 202 | $ 92 | $ 402 | $ 115 |
Other comprehensive earnings (loss): | ||||
Foreign currency translation adjustment | 48 | 62 | 36 | (162) |
Pension and other postretirement benefits | 8 | (3) | 49 | (11) |
Derivatives designated as hedges | 60 | 11 | 106 | 19 |
Total other comprehensive earnings (loss) | 116 | 70 | 191 | (154) |
Income tax (provision) benefit | (16) | 1 | (34) | (4) |
Total other comprehensive earnings (loss), net of tax | 100 | 71 | 157 | (158) |
Total comprehensive earnings (loss) | 302 | 163 | 559 | (43) |
Comprehensive (earnings) loss attributable to noncontrolling interests | 2 | 2 | ||
Comprehensive earnings (loss) attributable to Ball Corporation | $ 302 | $ 165 | $ 559 | $ (41) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 571 | $ 1,366 |
Receivables, net | 2,620 | 1,738 |
Inventories, net | 1,490 | 1,353 |
Other current assets | 348 | 218 |
Total current assets | 5,029 | 4,675 |
Noncurrent assets | ||
Property, plant and equipment, net | 5,915 | 5,351 |
Goodwill | 4,448 | 4,484 |
Intangible assets, net | 1,785 | 1,883 |
Other assets | 1,969 | 1,859 |
Total assets | 19,146 | 18,252 |
Current liabilities | ||
Short-term debt and current portion of long-term debt | 771 | 17 |
Accounts payable | 3,961 | 3,430 |
Accrued employee costs | 334 | 347 |
Other current liabilities | 851 | 650 |
Total current liabilities | 5,917 | 4,444 |
Noncurrent liabilities | ||
Long-term debt | 6,970 | 7,783 |
Employee benefit obligations | 1,393 | 1,613 |
Deferred taxes | 671 | 634 |
Other liabilities | 494 | 441 |
Total liabilities | 15,445 | 14,915 |
Equity | ||
Common stock (680,245,789 shares issued - 2021; 679,524,325 shares issued - 2020) | 1,195 | 1,167 |
Retained earnings | 6,496 | 6,192 |
Accumulated other comprehensive earnings (loss) | (797) | (954) |
Treasury stock, at cost (353,474,807 shares - 2021; 351,938,709 shares - 2020) | (3,255) | (3,130) |
Total Ball Corporation shareholders' equity | 3,639 | 3,275 |
Noncontrolling interests | 62 | 62 |
Total equity | 3,701 | 3,337 |
Total liabilities and equity | $ 19,146 | $ 18,252 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Jun. 30, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets | ||
Common stock, shares issued | 680,245,789 | 679,524,325 |
Treasury stock, shares | 353,474,807 | 351,938,709 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net earnings | $ 402 | $ 115 |
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 340 | 339 |
Business consolidation and other activities | (5) | 227 |
Deferred tax provision (benefit) | 73 | (50) |
Other, net | (146) | 78 |
Changes in working capital components, net of dispositions | (496) | (941) |
Cash provided by (used in) operating activities | 168 | (232) |
Cash Flows from Investing Activities | ||
Capital expenditures | (757) | (447) |
Business dispositions, net of cash sold | 1 | (17) |
Other, net | 20 | 23 |
Cash provided by (used in) investing activities | (736) | (441) |
Cash Flows from Financing Activities | ||
Long-term borrowings | 1,252 | |
Repayments of long-term borrowings | (14) | (1,916) |
Net change in short-term borrowings | 19 | 492 |
Proceeds (payments) from issuances of common stock, net of shares used for taxes | 18 | (25) |
Acquisitions of treasury stock | (146) | (57) |
Common stock dividends | (99) | (100) |
Other, net | (34) | |
Cash provided by (used in) financing activities | (222) | (388) |
Effect of exchange rate changes on cash | (5) | (92) |
Change in cash, cash equivalents and restricted cash | (795) | (1,153) |
Cash, cash equivalents and restricted cash - beginning of period | 1,381 | 1,806 |
Cash, cash equivalents and restricted cash - end of period | $ 586 | $ 653 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Basis of Presentation | |
Basis of Presentation | 1 . Basis of Presentation The accompanying unaudited condensed consolidated financial statements (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 consolidated 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 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 2020 Annual Report on Form 10-K filed on February 17, 2021, pursuant to the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2020 (annual report). The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires Ball’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated 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 consolidated financial statements reflect all adjustments that are of a normal recurring nature and are necessary to fairly state the results of the periods presented. Certain prior year amounts have been reclassified in order to conform to the current year presentation. Risks and Uncertainties – Novel Coronavirus (COVID-19) The preparation of consolidated 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 estimate the impacts of COVID-19. However, Ball management has reviewed the estimates used in preparing the company’s consolidated 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 company’s 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 positions at June 30, 2021, which could impact the company’s ability to satisfy 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 consolidated 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. |
Accounting Pronouncements
Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Pronouncements | |
Accounting Pronouncements | 2. Accounting Pronouncements Recently Adopted Accounting Standards Income Tax Simplification In December 2019, new guidance was issued to simplify the accounting for income taxes. Ball adopted this guidance and all related amendments on January 1, 2021, applying either the retrospective basis, the modified retrospective method, or the prospective method where appropriate. The adoption of this guidance had no impact on the company’s consolidated financial statements. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Business Segment Information | |
Business Segment Information | 3. Business Segment Information Ball’s operations are organized and reviewed by management along its product lines and geographical areas and presented in the four reportable segments outlined below. Beverage packaging, North and Central America : Beverage packaging, 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) throughout North America, South America, Europe, and Asia; 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 used in the company’s consolidated financial statements as discussed in Note 1 Note 4 Summary of Business by Segment Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2021 2020 2021 2020 Net sales Beverage packaging, North and Central America $ 1,524 $ 1,267 $ 2,820 $ 2,448 Beverage packaging, EMEA 906 699 1,702 1,368 Beverage packaging, South America 452 329 939 734 Aerospace 459 438 883 870 Reportable segment sales 3,341 2,733 6,344 5,420 Other 118 68 240 166 Net sales $ 3,459 $ 2,801 $ 6,584 $ 5,586 Comparable operating earnings Beverage packaging, North and Central America $ 193 $ 189 $ 333 $ 335 Beverage packaging, EMEA 124 63 224 131 Beverage packaging, South America 78 46 171 109 Aerospace 34 30 69 70 Reportable segment comparable operating earnings 429 328 797 645 Reconciling items Other (a) (30) (1) (53) (11) Business consolidation and other activities 12 (112) 5 (227) Amortization of acquired intangibles (38) (37) (76) (74) Earnings before interest and taxes 373 178 673 333 Interest expense (66) (67) (133) (138) Debt refinancing and other costs — — — (40) Total interest expense (66) (67) (133) (178) Earnings before taxes $ 307 $ 111 $ 540 $ 155 (a) Includes undistributed corporate expenses, net, of $ 28 million and $ 6 million for the three months ended June 30, 2021 and 2020, respectively, and $54 million and $20 million for the six months ended June 30, 2021 and 2020, 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 | 6 Months Ended |
Jun. 30, 2021 | |
Acquisitions and Dispositions | |
Acquisitions and Dispositions | 4. Acquisitions and Dispositions Brazil Aluminum Aerosol Packaging Business In August 2020, the company acquired the entire share capital of Tubex Industria E Comercio de Embalagens Ltda, an aluminum aerosol packaging business with a plant in Itupeva, Brazil, for the purchase price of $80 million, subject to customary closing adjustments, including initial cash consideration of $69 million plus potential additional consideration not to exceed $30 million in total. The business is part of Ball’s aerosol packaging operating segment. The transaction broadens the geographic reach of Ball’s aluminum aerosol packaging business, serving the growing Brazilian personal care market. South Korea Investment In June 2021, Ball entered into an agreement to sell its minority-owned investment in South Korea, which is expected to close during the third quarter of 2021. The company expects to receive total proceeds of $120 million, of which $30 million was received as a deposit during June 2021. This deposit is presented in other current liabilities in Ball’s unaudited condensed consolidated balance sheets and in other, net, cash flows provided by (used in) investing activities in Ball’s unaudited condensed consolidated statements of cash flows. See Note 6 |
Revenue from Contracts With Cus
Revenue from Contracts With Customers | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer | |
Revenue from Contracts with Customers | 5. Revenue from Contracts with Customers Disaggregation of Sales The company disaggregates net sales by reportable segments as disclosed in Note 3 The following table disaggregates the company’s net sales based on the timing of transfer of control: Three Months Ended June 30, Six Months Ended June 30, ($ in millions) Point in Time Over Time Total Point in Time Over Time Total 2021 $ 624 $ 2,835 $ 3,459 $ 1,234 $ 5,350 $ 6,584 2020 531 2,270 2,801 1,034 4,552 5,586 Contract Balances The company did not have any contract assets at either June 30, 2021 December 31, 2020 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, 2020 $ 108 $ 29 Increase (decrease) 136 (4) Balance at June 30, 2021 $ 244 $ 25 During the six months ended June 30, 2021, total contract liabilities increased by $132 million, which is net of cash received of $359 million and amounts recognized as sales of $227 million, the majority of which related to current contract liabilities. The amount of sales recognized in the six months ended June 30, 2021, which were included in the opening contract liabilities balances, was $108 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 net sales of $4 million and a net reduction of sales of $5 million in the three months ended June 30, 2021 and 2020, respectively, and net sales of $11 million and $4 million in the six months ended June 30, 2021 and 2020, respectively, from performance obligations satisfied (or partially satisfied) in prior periods. These sales amounts are the result of changes in the transaction price of the company’s contracts with customers. Transaction Price Allocated to Remaining Performance Obligations The table below discloses: (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period for contracts with an original duration of greater than one year, and (2) when the company expects to record sales on these multi-year contracts. ($ in millions) Next Twelve Months Thereafter Total Sales expected to be recognized on multi-year contracts in place as of June 30, 2021 $ 1,444 $ 1,399 $ 2,843 |
Business Consolidation and Othe
Business Consolidation and Other Activities | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, ($ in millions) 2021 2020 2021 2020 Beverage packaging, North and Central America $ (2) $ (1) $ (1) $ (4) Beverage packaging, EMEA (1) (3) (3) (6) Beverage packaging, South America 21 (3) 20 (4) Other (6) (105) (11) (213) $ 12 $ (112) $ 5 $ (227) 2021 Beverage Packaging, North and Central America During the three and six months ended June 30, 2021, the company recorded net charges of $2 million and $1 million, respectively, for individually insignificant activities in connection with previously announced closures of certain plants and other activities. Beverage Packaging, EMEA During the three and six months ended June 30, 2021, the company recorded charges of $1 million and $3 million, respectively, for individually insignificant activities in connection with previously announced plant closures, restructuring and other activities. Beverage Packaging, South America During the three and six months ended June 30, 2021, the company recorded a $22 million gain related to indirect tax gain contingencies in Brazil as these amounts are now estimable and realizable. The company’s Brazilian subsidiaries filed lawsuits in 2014 and 2015 to challenge the Brazilian tax authorities regarding the computation of certain indirect taxes, claiming amounts were overpaid to the tax authorities because the tax base included a “tax on tax” component. See Note 21 Other During the three and six months ended June 30, 2021, the company recorded an impairment charge of $5 million related to the pending sale of its minority-owned investment in South Korea. See Note 4 2020 Beverage Packaging, North and Central America During the three and six months ended June 30, 2020, the company recorded charges of $1 million and $4 million, respectively, for individually insignificant activities. Beverage Packaging, EMEA During the three and six months ended June 30, 2020, the company recorded charges of $3 million and $6 million, respectively, for individually insignificant activities. Beverage Packaging, South America During the three and six months ended June 30, 2020, the company recorded charges of $3 million and $4 million, respectively, for individually insignificant activities. Other During the three months ended June 30, 2020, the company recorded the following amounts: ● A non-cash settlement loss of $97 million related to the purchase of non-participating group annuity contracts and lump-sum payments to settle the projected pension benefit obligations for certain of Ball’s U.S. defined pension plans, which triggered settlement accounting. The settlement loss primarily reflects the recognition of aggregate unamortized actuarial losses in these U.S. pension plans. ● Charges of $8 million for individually insignificant activities. During the six months ended June 30, 2020, the company recorded the following amounts: ● A non-cash settlement loss of $97 million related to the purchase of non-participating group annuity contracts and lump-sum payments to settle the projected pension benefit obligations for certain of Ball’s U.S. defined pension plans, which triggered settlement accounting. The settlement loss primarily reflects the recognition of aggregate unamortized actuarial losses in these U.S. pension plans. ● A non-cash impairment charge of $62 million related to the goodwill of the beverage packaging, other, operating segment. See Note 11 for further details. ● A non-cash charge of $23 million resulting from the deterioration of China’s real estate market in 2020, which led the company to reduce the value of potential future consideration due as part of the 2019 sale of its China beverage packaging business. ● Charges of $15 million resulting from an adjustment to the selling price of the company’s former steel food and aerosol business. ● A credit of $11 million related to the reversal of reserves against working capital recorded in 2019 in the beverage packaging, other, segment, as previously at-risk balances were subsequently collected. ● Charges of $6 million for long-term incentive and other compensation arrangements associated with the 2016 Rexam acquisition. ● Charges of $21 million for individually insignificant activities. |
Supplemental Cash Flow Statemen
Supplemental Cash Flow Statement Disclosures | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Statement Disclosures | |
Cash and Cash Equivalents Disclosure [Text Block] | 7. Supplemental Cash Flow Statement Disclosures June 30, ($ in millions) 2021 2020 Beginning of period: Cash and cash equivalents $ 1,366 $ 1,798 Current restricted cash (included in other current assets) 15 8 Total cash, cash equivalents and restricted cash $ 1,381 $ 1,806 End of period: Cash and cash equivalents $ 571 $ 643 Current restricted cash (included in other current assets) 15 10 Total cash, cash equivalents and restricted cash $ 586 $ 653 The company’s restricted cash is primarily related to receivables factoring programs and represents amounts collected from customers that have not yet been remitted to the banks as of the end of the reporting period. Noncash investing activities include the acquisition of property, plant and equipment (PP&E) for which payment has not been made. These noncash capital expenditures are excluded from the statement of cash flows. The PP&E acquired but not yet paid for amounted to approximately $565 million at June 30, 2021, and $409 million at December 31, 2020. |
Receivables, Net
Receivables, Net | 6 Months Ended |
Jun. 30, 2021 | |
Receivables, Net | |
Receivables, Net | 8. Receivables, Net June 30, December 31, ($ in millions) 2021 2020 Trade accounts receivable $ 1,462 $ 825 Unbilled receivables 649 528 Less: Allowance for doubtful accounts (9) (9) Net trade accounts receivable 2,102 1,344 Other receivables 518 394 $ 2,620 $ 1,738 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 $1.8 billion at June 30, 2021, and $1.6 billion at December 31, 2020. A total of $327 million and $232 million were available for sale under these programs as of June 30, 2021, and December 31, 2020, respectively. Other receivables include income and sales tax receivables and other miscellaneous receivables. |
Inventories, Net
Inventories, Net | 6 Months Ended |
Jun. 30, 2021 | |
Inventories, Net | |
Inventories, Net | 9. Inventories, Net June 30, December 31, ($ in millions) 2021 2020 Raw materials and supplies $ 945 $ 889 Work-in-process and finished goods 639 557 Less: Inventory reserves (94) (93) $ 1,490 $ 1,353 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment, Net. | |
Property, Plant and Equipment, Net | 10. Property, Plant and Equipment, Net June 30, December 31, ($ in millions) 2021 2020 Land $ 164 $ 163 Buildings 1,867 1,653 Machinery and equipment 6,607 6,214 Construction-in-progress 1,017 883 9,655 8,913 Accumulated depreciation (3,740) (3,562) $ 5,915 $ 5,351 Depreciation expense amounted to $127 million and $126 million for the three months ended June 30, 2021 and 2020, respectively, and $250 million and $250 million for the six months ended June 30, 2021 and 2020, respectively. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets, Net | |
Goodwill | 11. Goodwill ($ in millions) Beverage Beverage Beverage Aerospace Other Total Balance at December 31, 2020 $ 1,275 $ 1,573 $ 1,298 $ 40 $ 298 $ 4,484 Effects of currency exchange — (33) — — (3) (36) Balance at June 30, 2021 $ 1,275 $ 1,540 $ 1,298 $ 40 $ 295 $ 4,448 Goodwill in the above table is presented net of accumulated impairment losses of $62 million as of June 30, 2021 and December 31, 2020. In the first quarter of 2020, Ball recorded a non-cash impairment charge of $62 million related to the goodwill associated with the beverage packaging, other, reporting unit as the carrying amount of this reporting unit exceeded its fair value. The impairment review was triggered by the restructuring of the company’s reporting units which was made in connection with a January 1, 2020 change in segment management and internal reporting structure. |
Intangible Assets, Net
Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets, Net | |
Intangible Assets, Net | 12. Intangible Assets, Net June 30, December 31, ($ in millions) 2021 2020 Acquired customer relationships and other intangibles (net of accumulated amortization of $799 million at June 30, 2021, and $729 million at December 31, 2020) $ 1,694 $ 1,785 Capitalized software (net of accumulated amortization of $206 million at June 30, 2021, and $196 million at December 31, 2020) 65 69 Other intangibles (net of accumulated amortization of $94 million at June 30, 2021, and $124 million at December 31, 2020) 26 29 $ 1,785 $ 1,883 Total amortization expense of intangible assets amounted to $45 million and $44 million for the three months ended June 30, 2021 and 2020, respectively, and $90 million and $89 million for the six months ended June 30, 2021 and 2020, respectively. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2021 | |
Other Assets.. | |
Other Assets. | 13. Other Assets June 30, December 31, ($ in millions) 2021 2020 Long-term pension assets $ 579 $ 562 Investments in affiliates 305 321 Right-of-use operating lease assets 383 302 Long-term deferred tax assets 155 227 Other 547 447 $ 1,969 $ 1,859 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 $30 million, which resulted in Ball recognizing this same level of previously unrecorded equity method losses associated with prior periods. These losses are presented in equity in results of affiliates, net of tax, in the company’s unaudited condensed consolidated statement of earnings. Ball is under no obligation to provide additional equity contributions or loans to Ball Metalpack. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
Leases | 14. Leases The company enters into operating leases for buildings, warehouses, office equipment, production equipment, aircraft, land and other types of equipment. The company also enters into finance leases for certain plant equipment. Supplemental balance sheet information related to the company’s leases follows: June 30, December 31, ($ in millions) Balance Sheet Location 2021 2020 Operating leases: Operating lease ROU asset Other assets $ 383 $ 302 Current operating lease liabilities Other current liabilities 75 63 Noncurrent operating lease liabilities Other liabilities 310 232 Finance leases: Finance lease ROU assets, net Property, plant and equipment, net $ 10 $ 11 Current finance lease liabilities Short-term debt and current portion of long-term debt 2 2 Noncurrent finance lease liabilities Long-term debt 9 10 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt | |
Debt | 15. Debt Long-term debt consisted of the following: June 30, December 31, ($ in millions) 2021 2020 Senior Notes 5.00% due March 2022 $ 736 $ 748 4.00% due November 2023 1,000 1,000 4.375%, euro denominated, due December 2023 830 855 0.875%, euro denominated, due March 2024 889 916 5.25% due July 2025 1,000 1,000 4.875% due March 2026 750 750 1.50%, euro denominated, due March 2027 652 672 2.875% due August 2030 1,300 1,300 Senior Credit Facility (at variable rates) Term A loan due March 2024 593 593 Finance lease obligations 11 12 Other (including debt issuance costs) (53) (60) 7,708 7,786 Less: Current portion (738) (3) $ 6,970 $ 7,783 The company’s senior credit facilities include long-term multi-currency revolving facilities that mature in March 2024, which provide the company with up to the U.S. dollar equivalent of $1.75 billion. At June 30, 2021, taking into account outstanding letters of credit, $1.7 billion was available under the company’s long-term, revolving credit facilities. In addition to these facilities, the company had approximately $1 billion of short-term uncommitted credit facilities available at June 30, 2021, of which $33 million was outstanding and due on demand. At December 31, 2020, the company had $14 million outstanding under short-term uncommitted credit facilities. The fair value of long-term debt was estimated to be $8.1 billion at June 30, 2021, and $8.3 billion at December 31, 2020. 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 company’s most restrictive debt covenant requires the company to maintain a leverage ratio (as defined) of no greater than 5.0 times as of June 30, 2021, which will change to 4.5 times as of December 31, 2022. The company was in compliance with all loan agreements and debt covenants at both June 30, 2021, and December 31, 2020, and it has met all debt payment obligations. |
Taxes on Income
Taxes on Income | 6 Months Ended |
Jun. 30, 2021 | |
Taxes on Income | |
Taxes on Income | 16. Taxes on Income The company’s effective tax rate was 37.8 percent and 27.4 percent for the three and six months ended June 30, 2021, respectively. As compared to the statutory U.S. tax rate, the effective tax rate for the three and six months ended June 30, 2021, was reduced by 3.8 and 3.2 percentage points, respectively, for federal tax credits, reduced by 0.8 and 2.6 percentage points, respectively, for foreign rate differences net of foreign withholding tax, and increased by 18.4 and 10.5 percentage points, respectively, for the U.K.’s enacted tax rate change. The company’s effective tax rate was 20.7 percent and 12.3 percent for the three and six months ended June 30, 2020, respectively. As compared to the statutory U.S. tax rate, the effective tax rate for the three and six months ended June 30, 2020, was reduced by 3.7 and 17.2 percentage points, respectively, for the benefit of share-based compensation, reduced by 11.2 and 9.4 percentage points, respectively, for federal tax credits, increased by 0.2 percentage points and reduced by 3.8 percentage points, respectively, for the equity in results of affiliates, increased by 8.4 and 9.2 percentage points, respectively, for the impact of revaluing certain deferred tax assets due to fluctuations in foreign currency exchange rates, increased by 4.2 and 0.5 percentage points, respectively, for foreign rate differences net of foreign withholding tax, and increased by 10 percentage points for the sixth months ended June 30, 2020, for the impact of the beverage packaging, other, goodwill impairment. |
Employee Benefit Obligations
Employee Benefit Obligations | 6 Months Ended |
Jun. 30, 2021 | |
Employee Benefit Obligations | |
Employee Benefit Obligations | 17. Employee Benefit Obligations June 30, December 31, ($ in millions) 2021 2020 Underfunded defined benefit pension liabilities $ 810 $ 955 Less: Current portion (23) (24) Long-term defined benefit pension liabilities 787 931 Long-term retiree medical liabilities 151 156 Deferred compensation plans 396 439 Other 59 87 $ 1,393 $ 1,613 Components of net periodic benefit cost associated with the company’s defined benefit pension plans were as follows: Three Months Ended June 30, 2021 2020 ($ in millions) U.S. Foreign Total U.S. Foreign Total Ball-sponsored plans: Service cost $ 21 $ 3 $ 24 $ 16 $ 4 $ 20 Interest cost 13 9 22 18 15 33 Expected return on plan assets (31) (16) (47) (31) (21) (52) Amortization of prior service cost 1 — 1 1 — 1 Recognized net actuarial loss 11 2 13 10 2 12 Settlement losses — — — 97 (a) — 97 Total net periodic benefit cost $ 15 $ (2) $ 13 $ 111 $ — $ 111 (a) Includes settlement losses related to the purchase of non-participating annuities and lump-sum payments which were recorded in business consolidation and other activities. Six Months Ended June 30, 2021 2020 ($ in millions) U.S. Non-U.S. Total U.S. Non-U.S. Total Ball-sponsored plans: Service cost $ 42 $ 6 $ 48 $ 32 $ 8 $ 40 Interest cost 26 18 44 38 29 67 Expected return on plan assets (62) (32) (94) (62) (42) (104) Amortization of prior service cost 1 1 2 1 1 2 Recognized net actuarial loss 24 3 27 20 3 23 Settlement losses — — — 97 (a) — 97 Total net periodic benefit cost $ 31 $ (4) $ 27 $ 126 $ (1) $ 125 (a) Includes settlement losses related to the purchase of non-participating annuities and lump-sum payments which were recorded in business consolidation and other activities. Non-service pension income of $11 million and $6 million for the three months ended June 30, 2021 and 2020, respectively, and income of $21 million and $12 million for the six months ended June 30, 2021 and 2020, respectively, is included in selling, general, and administrative (SG&A) expenses. Contributions to the company’s defined benefit pension plans were $167 million for the first six months of 2021 compared to $11 million for the first six months of 2020, and such contributions are expected to be approximately $215 million for the full year of 2021. This estimate may change based on changes to the U.S. Pension Protection Act, the effects of the Coronavirus Aid, Relief, and Economic Security Act (CARES) and American Rescue Plan Act (ARPA) and the actual returns achieved on plan assets, among other factors. |
Equity and Comprehensive Earnin
Equity and Comprehensive Earnings | 6 Months Ended |
Jun. 30, 2021 | |
Equity and Accumulated Other Comprehensive Earnings | |
Equity and Comprehensive Earnings | 18. Equity and Accumulated Other Comprehensive Earnings The following tables provide additional details of the company’s equity activity: Common Stock Treasury Stock Accumulated Other Number of Number of Retained Comprehensive Noncontrolling Total ($ in millions; share amounts in thousands) Shares Amount Shares Amount Earnings Earnings (Loss) Interest Equity Balance at March 31, 2021 680,014 $ 1,171 (351,899) $ (3,124) $ 6,342 $ (897) $ 62 $ 3,554 Net earnings — — — — 202 — — 202 Other comprehensive earnings (loss), net of tax — — — — — 100 — 100 Common dividends, net of tax benefits — — — — (48) — — (48) Treasury stock purchases — — (1,651) (139) — — — (139) Treasury shares reissued — — 75 8 — — — 8 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 232 24 — — — — — 24 Balance at June 30, 2021 680,246 $ 1,195 (353,475) $ (3,255) $ 6,496 $ (797) $ 62 $ 3,701 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 March 31, 2020 678,128 $ 1,151 (352,209) $ (3,159) $ 5,777 $ (1,139) $ 70 $ 2,700 Net earnings — — — — 94 — (2) 92 Other comprehensive earnings (loss), net of tax — — — — — 71 — 71 Common dividends, net of tax benefits — — — — (50) — — (50) Treasury stock purchases — — — — — — — — Treasury shares reissued — — 106 7 — — — 7 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 356 2 — — — — — 2 Other activity — — 1 7 1 — — 8 Balance at June 30, 2020 678,484 $ 1,153 (352,102) $ (3,145) $ 5,822 $ (1,068) $ 68 $ 2,830 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, 2020 679,524 $ 1,167 (351,939) $ (3,130) $ 6,192 $ (954) $ 62 $ 3,337 Net earnings (loss) — — — — 402 — — 402 Other comprehensive earnings (loss), net of tax — — — — — 157 — 157 Common dividends, net of tax benefits — — — — (98) — — (98) Treasury stock purchases — — (1,772) (149) — — — (149) Treasury shares reissued — — 236 16 — — — 16 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 722 28 — 8 — — — 36 Balance at June 30, 2021 680,246 $ 1,195 (353,475) $ (3,255) $ 6,496 $ (797) $ 62 $ 3,701 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 — — — — 117 — (2) 115 Other comprehensive earnings (loss), net of tax — — — — — (158) — (158) Common dividends, net of tax benefits — — — (99) — — (99) Treasury stock purchases — — (774) (54) — — — (54) Treasury shares reissued — — 338 14 — — — 14 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 2,182 (25) — — — — — (25) Other activity — — 1 17 1 — — 18 Balance at June 30, 2020 678,484 $ 1,153 (352,102) $ (3,145) $ 5,822 $ (1,068) $ 68 $ 2,830 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, 2020 (555) (466) 67 (954) Other comprehensive earnings (loss) before reclassifications 36 18 100 154 Reclassification of net deferred (gains) losses into earnings — 21 (18) 3 Balance at June 30, 2021 $ (519) $ (427) $ 149 $ (797) The following table provides additional details of the amounts recognized into net earnings from accumulated other comprehensive earnings (loss): Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2021 2020 2021 2020 Gains (losses) on cash flow hedges: Commodity contracts recorded in net sales $ (45) $ 37 $ (61) $ 37 Commodity contracts recorded in cost of sales 32 (39) 42 (35) Currency exchange contracts recorded in selling, general and administrative (3) (11) 39 7 Cross-currency swaps recorded in selling, general and administrative — — — (1) Interest rate contracts recorded in interest expense — (2) — (3) Total before tax effect (16) (15) 20 5 Tax benefit (expense) on amounts reclassified into earnings 5 3 (2) (2) Recognized gain (loss), net of tax $ (11) $ (12) $ 18 $ 3 Amortization of pension and other postretirement benefits: (a) Actuarial gains (losses) $ (13) $ (9) $ (27) $ (20) Prior service income (expense) (1) (1) (2) (1) Effect of pension settlements — (104) — (104) Total before tax effect (14) (114) (29) (125) Tax benefit (expense) on amounts reclassified into earnings 4 28 8 31 Recognized gain (loss), net of tax $ (10) $ (86) $ (21) $ (94) (a) These components are included in the computation of net periodic benefit cost detailed in Note 17 . |
Earnings and Dividends Per Shar
Earnings and Dividends Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings and Dividends Per Share | |
Earnings and Dividends Per Share | 19. Earnings and Dividends Per Share Three Months Ended June 30, Six Months Ended June 30, ($ in millions, except per share amounts; shares in thousands) 2021 2020 2021 2020 Net earnings attributable to Ball Corporation $ 202 $ 94 $ 402 $ 117 Basic weighted average common shares 327,625 325,994 327,718 325,670 Effect of dilutive securities 5,753 5,723 5,897 6,214 Weighted average shares applicable to diluted earnings per share 333,378 331,717 333,615 331,884 Per basic share $ 0.62 $ 0.29 $ 1.23 $ 0.36 Per diluted share $ 0.61 $ 0.28 $ 1.20 $ 0.35 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 one million for the three and six months ended June 30, 2021 and 2020. The company declared and paid dividends of $0.15 per share and $0.30 per share for the three and six months ended June 30, 2021 and 2020, respectively. On July 28, 2021, Ball’s board of directors increased the company’s quarterly common share dividend by 33 percent to 20 cents per share, which will be effective for the next quarterly dividend to be paid on September 15, 2021, to shareholders of record as of September 1, 2021. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments and Risk Management | |
Financial Instruments and Risk Management | 20. Financial Instruments and Risk Management Policies and Procedures The company employs established risk management policies and procedures, which seek to reduce the company’s commercial risk exposure to fluctuations in commodity prices, interest rates, currency exchange rates and prices of the company’s common stock with regard to common share repurchases and the company’s deferred compensation stock plan. However, there can be no assurance these policies and procedures will be successful. Although the instruments utilized involve varying degrees of credit, market and interest risk, the counterparties to the agreements are expected to perform fully under the terms of the agreements. The company monitors counterparty credit risk, including lenders, on a regular basis, but Ball cannot be certain that all risks will be discerned or that its risk management policies and procedures will always be effective. Additionally, in the event of default under the company’s master derivative agreements, the non-defaulting party has the option to offset any amounts owed with regard to open derivative positions. Commodity Price Risk - Interest Rate Risk - Currency Exchange Rate Risk - The following table provides additional information related to the commercial risk management instruments described above: ($ in millions) June 30, 2021 Commercial risk area Commodity Currency Interest Rate Notional amount of contracts $ 1,685 (a) $ 2,784 $ 1,930 Net gain (loss) included in AOCI, after-tax 122 (b) 27 — Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months 107 (b) 21 — Longest duration of forecasted cash flow hedge transactions in years 3 4 2 (a) Substantially all aluminum contracts received hedge accounting treatment as of June 30, 2021. (b) Substantially all of this gain (loss) will be offset by pricing changes in sales and purchase contracts. 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 March 2022 and have a combined notional value of 2.6 million shares. Based on the current number of shares in the program, each $1 change in the company’s stock price would have 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 company to post collateral in certain circumstances when the negative mark to fair value of the derivative contracts exceeds specified levels. Additionally, the company has collateral posting arrangements with certain customers on these derivative contracts. The cash flows of the margin calls, if any, are shown within the investing section of the company’s unaudited condensed consolidated statements of cash flows. As of June 30, 2021, and December 31, 2020, the aggregate fair value of all derivative instruments with credit-risk-related contingent features was a net liability position of $12 million and $52 million, respectively, and no collateral was required to be posted. Fair Value Measurements Ball has classified all applicable financial derivative assets and liabilities as Level 2 within the fair value hierarchy as of June 30, 2021, and December 31, 2020, and presented those values in the tables below. The company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. June 30, 2021 ($ in millions) Balance Sheet Location Derivatives Derivatives not Total Assets: Commodity contracts $ 145 $ — $ 145 Foreign currency contracts 5 17 22 Other contracts 1 — 1 Total current derivative contracts Other current assets $ 151 $ 17 $ 168 Commodity contracts $ 20 $ — $ 20 Foreign currency contracts 21 — 21 Total noncurrent derivative contracts Other noncurrent assets $ 41 $ — $ 41 Liabilities: Commodity contracts $ 28 $ 1 $ 29 Foreign currency contracts 1 5 6 Other contracts — 10 10 Total current derivative contracts Other current liabilities $ 29 $ 16 $ 45 Foreign currency contracts $ — $ 3 $ 3 Total noncurrent derivative contracts Other noncurrent liabilities $ — $ 3 $ 3 December 31, 2020 Derivatives Derivatives not Total Assets: Commodity contracts $ 50 $ — $ 50 Foreign currency contracts 3 27 30 Other contracts — 2 2 Total current derivative contracts Other current assets $ 53 $ 29 $ 82 Commodity contracts $ 8 $ — $ 8 Total noncurrent derivative contracts Other noncurrent assets $ 8 $ — $ 8 Liabilities: Commodity contracts $ 17 $ — $ 17 Foreign currency contracts — 63 63 Other contracts — 4 4 Total current derivative contracts Other current liabilities $ 17 $ 67 $ 84 Foreign currency contracts $ 8 $ 2 $ 10 Total noncurrent derivative contracts Other noncurrent liabilities $ 8 $ 2 $ 10 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 the use of 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 June 30, 2021, 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 June 30, 2021 2020 ($ 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 $ (45) $ — $ 37 $ — Commodity contracts - manage exposure to supplier pricing Cost of sales 32 3 (39) 10 Interest rate contracts - manage exposure for outstanding debt Interest expense — — (2) (1) Foreign currency contracts - manage currency exposure Selling, general and administrative (3) (15) (11) 18 Equity contracts Selling, general and administrative — (9) — 12 Total $ (16) $ (21) $ (15) $ 39 Six Months Ended June 30, 2021 2020 ($ 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 $ (61) $ — $ 37 $ 1 Commodity contracts - manage exposure to supplier pricing Cost of sales 42 6 (35) 9 Interest rate contracts - manage exposure for outstanding debt Interest expense — — (3) — Foreign currency contracts - manage currency exposure Selling, general and administrative 39 20 7 40 Cross-currency swaps - manage intercompany currency exposure Selling, general and administrative — — (1) — Equity contracts Selling, general and administrative — (34) — 10 Total $ 20 $ (8) $ 5 $ 60 The changes in accumulated other comprehensive earnings (loss) for derivatives designated as hedges were as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2021 2020 2021 2020 Amounts reclassified into earnings: Commodity contracts $ 13 $ 2 $ 19 $ (2) Cross-currency swap contracts — — — 1 Interest rate contracts — 2 — 3 Currency exchange contracts 3 11 (39) (7) Change in fair value of cash flow hedges: Commodity contracts 42 1 93 (29) Interest rate contracts — (2) — (4) Cross-currency swap contracts — — — 1 Currency exchange contracts 1 (3) 32 55 Foreign currency and tax impacts (14) (1) (23) (3) $ 45 $ 10 $ 82 $ 15 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
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 $27 million in the aggregate, and such amounts have been included in other current liabilities and other noncurrent liabilities at June 30, 2021. 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. 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. On December 31, 2020, the Court of Appeals vacated the decision of the District Court and remanded the case for further proceedings. The District Court held a telephonic hearing with counsel for the parties in March 2021 to discuss the scope of the proceedings on remand and initial position statement regarding remand which was submitted by each party. The District Court also directed each party to submit a document in response to the initial position statement of the other party in April 2021. The parties submitted their position statements to the District Court on April 21, 2021, and are currenty waiting on the District Court to advise regarding further proceedings. 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, which have historically mainly related to claims for taxes on the internal transfer of inventory, gross revenue taxes, and indirect tax incentives and deductibility of goodwill. In addition, one of the company’s Brazilian subsidiaries received an income tax assessment focused on the disallowance of deductions associated with the acquisition price paid to a third party for a portion of its operations. The company does not believe that the ultimate resolution of these matters will materially impact its 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 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 2020 and 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 $4 million of prior year collections in business consolidation and other activities within its third quarter 2020 unaudited condensed consolidated statement of earnings. Due to a favorable ruling by the Brazilian Supreme Court in June 2021, the company recorded an additional $22 million of prior year collections in business consolidation and other activities within its second quarter 2021 unaudited condensed consolidated statement of earnings. As of June 30, 2021, the Company has no additional claims outstanding that would result in material reimbursements. |
Indemnifications and Guarantees
Indemnifications and Guarantees | 6 Months Ended |
Jun. 30, 2021 | |
Indemnifications and Guarantees | |
Indemnifications and Guarantees | 22. Indemnifications and Guarantees General Guarantees The company or its appropriate consolidated direct or indirect subsidiaries, have made certain indemnities, commitments and guarantees under which the specified entity may be required to make payments in relation to certain transactions. These indemnities, commitments and guarantees include indemnities to the customers of the subsidiaries in connection with the sales of their packaging and aerospace products and services; guarantees to suppliers of subsidiaries of the company guaranteeing the performance of the respective entity under a purchase agreement, construction contract, renewable energy purchase contract or other commitment; guarantees in respect of certain non-U.S. subsidiaries’ pension plans; indemnities for liabilities associated with the infringement of third-party patents, trademarks or copyrights under various types of agreements; indemnities to various lessors in connection with facility, equipment, furniture and other personal property leases for certain claims arising from such leases; indemnities to governmental agencies in connection with the issuance of a permit or license to the company or a subsidiary; indemnities pursuant to agreements relating to certain joint ventures; indemnities in connection with the sale of businesses or substantially all of the assets and specified liabilities of businesses; and indemnities to directors, officers and employees of the company to the extent permitted under the laws of the State of Indiana and the United States of America. The duration of these indemnities, commitments and guarantees varies and, in certain cases, is indefinite. In addition, many of these indemnities, commitments and guarantees do not provide for any limitation on the maximum potential future payments the company could be obligated to make. As such, the company is unable to reasonably estimate its potential exposure under these items. The company has not recorded any 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 non-U.S. subsidiaries under the senior credit facilities, the obligations of non-U.S. 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 non-U.S. subsidiaries under the senior credit facilities, the obligations of non-U.S. 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 non-U.S. subsidiaries directly owned by the company or any of its wholly owned domestic subsidiaries. In addition, the obligations of certain non-U.S. borrowers and non-U.S. 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 non-U.S. 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. |
Accounting Pronouncements (Poli
Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Pronouncements | |
Recently Adopted Accounting Standards | Income Tax Simplification In December 2019, new guidance was issued to simplify the accounting for income taxes. Ball adopted this guidance and all related amendments on January 1, 2021, applying either the retrospective basis, the modified retrospective method, or the prospective method where appropriate. The adoption of this guidance had no impact on the company’s consolidated financial statements. |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Segment Information | |
Summary of business by segment | Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2021 2020 2021 2020 Net sales Beverage packaging, North and Central America $ 1,524 $ 1,267 $ 2,820 $ 2,448 Beverage packaging, EMEA 906 699 1,702 1,368 Beverage packaging, South America 452 329 939 734 Aerospace 459 438 883 870 Reportable segment sales 3,341 2,733 6,344 5,420 Other 118 68 240 166 Net sales $ 3,459 $ 2,801 $ 6,584 $ 5,586 Comparable operating earnings Beverage packaging, North and Central America $ 193 $ 189 $ 333 $ 335 Beverage packaging, EMEA 124 63 224 131 Beverage packaging, South America 78 46 171 109 Aerospace 34 30 69 70 Reportable segment comparable operating earnings 429 328 797 645 Reconciling items Other (a) (30) (1) (53) (11) Business consolidation and other activities 12 (112) 5 (227) Amortization of acquired intangibles (38) (37) (76) (74) Earnings before interest and taxes 373 178 673 333 Interest expense (66) (67) (133) (138) Debt refinancing and other costs — — — (40) Total interest expense (66) (67) (133) (178) Earnings before taxes $ 307 $ 111 $ 540 $ 155 (a) Includes undistributed corporate expenses, net, of $ 28 million and $ 6 million for the three months ended June 30, 2021 and 2020, respectively, and $54 million and $20 million for the six months ended June 30, 2021 and 2020, respectively. |
Revenue from Contracts With C_2
Revenue from Contracts With Customers (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer | |
Schedule of the disaggregation of revenue by timing of transfer of control | Three Months Ended June 30, Six Months Ended June 30, ($ in millions) Point in Time Over Time Total Point in Time Over Time Total 2021 $ 624 $ 2,835 $ 3,459 $ 1,234 $ 5,350 $ 6,584 2020 531 2,270 2,801 1,034 4,552 5,586 |
Schedule of balances of contract liabilities | Contract Contract Liabilities Liabilities ($ in millions) (Current) (Noncurrent) Balance at December 31, 2020 $ 108 $ 29 Increase (decrease) 136 (4) Balance at June 30, 2021 $ 244 $ 25 |
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 June 30, 2021 $ 1,444 $ 1,399 $ 2,843 |
Business Consolidation and Ot_2
Business Consolidation and Other Activities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, ($ in millions) 2021 2020 2021 2020 Beverage packaging, North and Central America $ (2) $ (1) $ (1) $ (4) Beverage packaging, EMEA (1) (3) (3) (6) Beverage packaging, South America 21 (3) 20 (4) Other (6) (105) (11) (213) $ 12 $ (112) $ 5 $ (227) |
Supplemental Cash Flow Statem_2
Supplemental Cash Flow Statement Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Statement Disclosures | |
Schedule of cash, cash equivalents and restricted cash | June 30, ($ in millions) 2021 2020 Beginning of period: Cash and cash equivalents $ 1,366 $ 1,798 Current restricted cash (included in other current assets) 15 8 Total cash, cash equivalents and restricted cash $ 1,381 $ 1,806 End of period: Cash and cash equivalents $ 571 $ 643 Current restricted cash (included in other current assets) 15 10 Total cash, cash equivalents and restricted cash $ 586 $ 653 |
Receivables, Net (Tables)
Receivables, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables, Net | |
Schedule of receivables | June 30, December 31, ($ in millions) 2021 2020 Trade accounts receivable $ 1,462 $ 825 Unbilled receivables 649 528 Less: Allowance for doubtful accounts (9) (9) Net trade accounts receivable 2,102 1,344 Other receivables 518 394 $ 2,620 $ 1,738 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventories, Net | |
Schedule of inventories | June 30, December 31, ($ in millions) 2021 2020 Raw materials and supplies $ 945 $ 889 Work-in-process and finished goods 639 557 Less: Inventory reserves (94) (93) $ 1,490 $ 1,353 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment, Net. | |
Schedule of property, plant and equipment | June 30, December 31, ($ in millions) 2021 2020 Land $ 164 $ 163 Buildings 1,867 1,653 Machinery and equipment 6,607 6,214 Construction-in-progress 1,017 883 9,655 8,913 Accumulated depreciation (3,740) (3,562) $ 5,915 $ 5,351 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets, Net | |
Schedule of goodwill | ($ in millions) Beverage Beverage Beverage Aerospace Other Total Balance at December 31, 2020 $ 1,275 $ 1,573 $ 1,298 $ 40 $ 298 $ 4,484 Effects of currency exchange — (33) — — (3) (36) Balance at June 30, 2021 $ 1,275 $ 1,540 $ 1,298 $ 40 $ 295 $ 4,448 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets, Net | |
Schedule of Finite-Lived Intangible Assets | June 30, December 31, ($ in millions) 2021 2020 Acquired customer relationships and other intangibles (net of accumulated amortization of $799 million at June 30, 2021, and $729 million at December 31, 2020) $ 1,694 $ 1,785 Capitalized software (net of accumulated amortization of $206 million at June 30, 2021, and $196 million at December 31, 2020) 65 69 Other intangibles (net of accumulated amortization of $94 million at June 30, 2021, and $124 million at December 31, 2020) 26 29 $ 1,785 $ 1,883 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Assets.. | |
Schedule of other assets | June 30, December 31, ($ in millions) 2021 2020 Long-term pension assets $ 579 $ 562 Investments in affiliates 305 321 Right-of-use operating lease assets 383 302 Long-term deferred tax assets 155 227 Other 547 447 $ 1,969 $ 1,859 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
Schedule of supplemental balance sheet information related to leases | June 30, December 31, ($ in millions) Balance Sheet Location 2021 2020 Operating leases: Operating lease ROU asset Other assets $ 383 $ 302 Current operating lease liabilities Other current liabilities 75 63 Noncurrent operating lease liabilities Other liabilities 310 232 Finance leases: Finance lease ROU assets, net Property, plant and equipment, net $ 10 $ 11 Current finance lease liabilities Short-term debt and current portion of long-term debt 2 2 Noncurrent finance lease liabilities Long-term debt 9 10 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt | |
Schedule of long-term debt | June 30, December 31, ($ in millions) 2021 2020 Senior Notes 5.00% due March 2022 $ 736 $ 748 4.00% due November 2023 1,000 1,000 4.375%, euro denominated, due December 2023 830 855 0.875%, euro denominated, due March 2024 889 916 5.25% due July 2025 1,000 1,000 4.875% due March 2026 750 750 1.50%, euro denominated, due March 2027 652 672 2.875% due August 2030 1,300 1,300 Senior Credit Facility (at variable rates) Term A loan due March 2024 593 593 Finance lease obligations 11 12 Other (including debt issuance costs) (53) (60) 7,708 7,786 Less: Current portion (738) (3) $ 6,970 $ 7,783 |
Employee Benefit Obligations (T
Employee Benefit Obligations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Employee Benefit Obligations | |
Schedule of employee benefit obligations | June 30, December 31, ($ in millions) 2021 2020 Underfunded defined benefit pension liabilities $ 810 $ 955 Less: Current portion (23) (24) Long-term defined benefit pension liabilities 787 931 Long-term retiree medical liabilities 151 156 Deferred compensation plans 396 439 Other 59 87 $ 1,393 $ 1,613 |
Defined Benefit Pension Plans | |
Employee Benefit Obligations | |
Components of net periodic benefit cost | Three Months Ended June 30, 2021 2020 ($ in millions) U.S. Foreign Total U.S. Foreign Total Ball-sponsored plans: Service cost $ 21 $ 3 $ 24 $ 16 $ 4 $ 20 Interest cost 13 9 22 18 15 33 Expected return on plan assets (31) (16) (47) (31) (21) (52) Amortization of prior service cost 1 — 1 1 — 1 Recognized net actuarial loss 11 2 13 10 2 12 Settlement losses — — — 97 (a) — 97 Total net periodic benefit cost $ 15 $ (2) $ 13 $ 111 $ — $ 111 (a) Includes settlement losses related to the purchase of non-participating annuities and lump-sum payments which were recorded in business consolidation and other activities. Six Months Ended June 30, 2021 2020 ($ in millions) U.S. Non-U.S. Total U.S. Non-U.S. Total Ball-sponsored plans: Service cost $ 42 $ 6 $ 48 $ 32 $ 8 $ 40 Interest cost 26 18 44 38 29 67 Expected return on plan assets (62) (32) (94) (62) (42) (104) Amortization of prior service cost 1 1 2 1 1 2 Recognized net actuarial loss 24 3 27 20 3 23 Settlement losses — — — 97 (a) — 97 Total net periodic benefit cost $ 31 $ (4) $ 27 $ 126 $ (1) $ 125 (a) Includes settlement losses related to the purchase of non-participating annuities and lump-sum payments which were recorded in business consolidation and other activities. |
Equity and Comprehensive Earn_2
Equity and Comprehensive Earnings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 March 31, 2021 680,014 $ 1,171 (351,899) $ (3,124) $ 6,342 $ (897) $ 62 $ 3,554 Net earnings — — — — 202 — — 202 Other comprehensive earnings (loss), net of tax — — — — — 100 — 100 Common dividends, net of tax benefits — — — — (48) — — (48) Treasury stock purchases — — (1,651) (139) — — — (139) Treasury shares reissued — — 75 8 — — — 8 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 232 24 — — — — — 24 Balance at June 30, 2021 680,246 $ 1,195 (353,475) $ (3,255) $ 6,496 $ (797) $ 62 $ 3,701 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 March 31, 2020 678,128 $ 1,151 (352,209) $ (3,159) $ 5,777 $ (1,139) $ 70 $ 2,700 Net earnings — — — — 94 — (2) 92 Other comprehensive earnings (loss), net of tax — — — — — 71 — 71 Common dividends, net of tax benefits — — — — (50) — — (50) Treasury stock purchases — — — — — — — — Treasury shares reissued — — 106 7 — — — 7 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 356 2 — — — — — 2 Other activity — — 1 7 1 — — 8 Balance at June 30, 2020 678,484 $ 1,153 (352,102) $ (3,145) $ 5,822 $ (1,068) $ 68 $ 2,830 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, 2020 679,524 $ 1,167 (351,939) $ (3,130) $ 6,192 $ (954) $ 62 $ 3,337 Net earnings (loss) — — — — 402 — — 402 Other comprehensive earnings (loss), net of tax — — — — — 157 — 157 Common dividends, net of tax benefits — — — — (98) — — (98) Treasury stock purchases — — (1,772) (149) — — — (149) Treasury shares reissued — — 236 16 — — — 16 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 722 28 — 8 — — — 36 Balance at June 30, 2021 680,246 $ 1,195 (353,475) $ (3,255) $ 6,496 $ (797) $ 62 $ 3,701 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 — — — — 117 — (2) 115 Other comprehensive earnings (loss), net of tax — — — — — (158) — (158) Common dividends, net of tax benefits — — — (99) — — (99) Treasury stock purchases — — (774) (54) — — — (54) Treasury shares reissued — — 338 14 — — — 14 Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged 2,182 (25) — — — — — (25) Other activity — — 1 17 1 — — 18 Balance at June 30, 2020 678,484 $ 1,153 (352,102) $ (3,145) $ 5,822 $ (1,068) $ 68 $ 2,830 |
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, 2020 (555) (466) 67 (954) Other comprehensive earnings (loss) before reclassifications 36 18 100 154 Reclassification of net deferred (gains) losses into earnings — 21 (18) 3 Balance at June 30, 2021 $ (519) $ (427) $ 149 $ (797) |
Information related to amounts reclassified into net earnings from accumulated other comprehensive earnings (loss) | Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2021 2020 2021 2020 Gains (losses) on cash flow hedges: Commodity contracts recorded in net sales $ (45) $ 37 $ (61) $ 37 Commodity contracts recorded in cost of sales 32 (39) 42 (35) Currency exchange contracts recorded in selling, general and administrative (3) (11) 39 7 Cross-currency swaps recorded in selling, general and administrative — — — (1) Interest rate contracts recorded in interest expense — (2) — (3) Total before tax effect (16) (15) 20 5 Tax benefit (expense) on amounts reclassified into earnings 5 3 (2) (2) Recognized gain (loss), net of tax $ (11) $ (12) $ 18 $ 3 Amortization of pension and other postretirement benefits: (a) Actuarial gains (losses) $ (13) $ (9) $ (27) $ (20) Prior service income (expense) (1) (1) (2) (1) Effect of pension settlements — (104) — (104) Total before tax effect (14) (114) (29) (125) Tax benefit (expense) on amounts reclassified into earnings 4 28 8 31 Recognized gain (loss), net of tax $ (10) $ (86) $ (21) $ (94) (a) These components are included in the computation of net periodic benefit cost detailed in Note 17 . |
Earnings and Dividends per Sh_2
Earnings and Dividends per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings and Dividends Per Share | |
Schedule of earnings per share | Three Months Ended June 30, Six Months Ended June 30, ($ in millions, except per share amounts; shares in thousands) 2021 2020 2021 2020 Net earnings attributable to Ball Corporation $ 202 $ 94 $ 402 $ 117 Basic weighted average common shares 327,625 325,994 327,718 325,670 Effect of dilutive securities 5,753 5,723 5,897 6,214 Weighted average shares applicable to diluted earnings per share 333,378 331,717 333,615 331,884 Per basic share $ 0.62 $ 0.29 $ 1.23 $ 0.36 Per diluted share $ 0.61 $ 0.28 $ 1.20 $ 0.35 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments and Risk Management | |
Schedule of additional information related to the commercial risk management instruments | ($ in millions) June 30, 2021 Commercial risk area Commodity Currency Interest Rate Notional amount of contracts $ 1,685 (a) $ 2,784 $ 1,930 Net gain (loss) included in AOCI, after-tax 122 (b) 27 — Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months 107 (b) 21 — Longest duration of forecasted cash flow hedge transactions in years 3 4 2 (a) Substantially all aluminum contracts received hedge accounting treatment as of June 30, 2021. (b) Substantially all of this gain (loss) will be offset by pricing changes in sales and purchase contracts. |
Schedule of fair value of derivative instruments | June 30, 2021 ($ in millions) Balance Sheet Location Derivatives Derivatives not Total Assets: Commodity contracts $ 145 $ — $ 145 Foreign currency contracts 5 17 22 Other contracts 1 — 1 Total current derivative contracts Other current assets $ 151 $ 17 $ 168 Commodity contracts $ 20 $ — $ 20 Foreign currency contracts 21 — 21 Total noncurrent derivative contracts Other noncurrent assets $ 41 $ — $ 41 Liabilities: Commodity contracts $ 28 $ 1 $ 29 Foreign currency contracts 1 5 6 Other contracts — 10 10 Total current derivative contracts Other current liabilities $ 29 $ 16 $ 45 Foreign currency contracts $ — $ 3 $ 3 Total noncurrent derivative contracts Other noncurrent liabilities $ — $ 3 $ 3 December 31, 2020 Derivatives Derivatives not Total Assets: Commodity contracts $ 50 $ — $ 50 Foreign currency contracts 3 27 30 Other contracts — 2 2 Total current derivative contracts Other current assets $ 53 $ 29 $ 82 Commodity contracts $ 8 $ — $ 8 Total noncurrent derivative contracts Other noncurrent assets $ 8 $ — $ 8 Liabilities: Commodity contracts $ 17 $ — $ 17 Foreign currency contracts — 63 63 Other contracts — 4 4 Total current derivative contracts Other current liabilities $ 17 $ 67 $ 84 Foreign currency contracts $ 8 $ 2 $ 10 Total noncurrent derivative contracts Other noncurrent liabilities $ 8 $ 2 $ 10 |
Schedule of impact on earnings from derivative instruments | Three Months Ended June 30, 2021 2020 ($ 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 $ (45) $ — $ 37 $ — Commodity contracts - manage exposure to supplier pricing Cost of sales 32 3 (39) 10 Interest rate contracts - manage exposure for outstanding debt Interest expense — — (2) (1) Foreign currency contracts - manage currency exposure Selling, general and administrative (3) (15) (11) 18 Equity contracts Selling, general and administrative — (9) — 12 Total $ (16) $ (21) $ (15) $ 39 Six Months Ended June 30, 2021 2020 ($ 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 $ (61) $ — $ 37 $ 1 Commodity contracts - manage exposure to supplier pricing Cost of sales 42 6 (35) 9 Interest rate contracts - manage exposure for outstanding debt Interest expense — — (3) — Foreign currency contracts - manage currency exposure Selling, general and administrative 39 20 7 40 Cross-currency swaps - manage intercompany currency exposure Selling, general and administrative — — (1) — Equity contracts Selling, general and administrative — (34) — 10 Total $ 20 $ (8) $ 5 $ 60 |
Schedule of changes in accumulated other comprehensive earnings (loss) for effective derivatives | Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2021 2020 2021 2020 Amounts reclassified into earnings: Commodity contracts $ 13 $ 2 $ 19 $ (2) Cross-currency swap contracts — — — 1 Interest rate contracts — 2 — 3 Currency exchange contracts 3 11 (39) (7) Change in fair value of cash flow hedges: Commodity contracts 42 1 93 (29) Interest rate contracts — (2) — (4) Cross-currency swap contracts — — — 1 Currency exchange contracts 1 (3) 32 55 Foreign currency and tax impacts (14) (1) (23) (3) $ 45 $ 10 $ 82 $ 15 |
Business Segment Information -
Business Segment Information - Summary of Business (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | |
Business Segment Information | ||||
Number of Reportable Segments | segment | 4 | |||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Net sales | $ 3,459 | $ 2,801 | $ 6,584 | $ 5,586 |
Reconciling items | ||||
Other | (30) | (1) | (53) | (11) |
Business consolidation and other activities | 12 | (112) | 5 | (227) |
Amortization of acquired Rexam intangibles | (45) | (44) | (90) | (89) |
Earnings before interest and taxes | 373 | 178 | 673 | 333 |
Interest expense | (66) | (67) | (133) | (138) |
Debt refinancing and other costs | (40) | |||
Total interest expense | (66) | (67) | (133) | (178) |
Earnings before taxes | 307 | 111 | 540 | 155 |
Undistributed corporate expenses | 28 | 6 | 54 | 20 |
Depreciation and Amortization | ||||
Depreciation and amortization | 172 | 170 | 340 | 339 |
Capital Expenditures | ||||
Capital expenditures | 757 | 447 | ||
Operating Segments | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Net sales | 3,341 | 2,733 | 6,344 | 5,420 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Reportable segment comparable operating earnings | 429 | 328 | 797 | 645 |
Operating Segments | Beverage packaging, North And Central America | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Net sales | 1,524 | 1,267 | 2,820 | 2,448 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Reportable segment comparable operating earnings | 193 | 189 | 333 | 335 |
Reconciling items | ||||
Business consolidation and other activities | (2) | (1) | (1) | (4) |
Operating Segments | Beverage packaging, EMEA | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Net sales | 906 | 699 | 1,702 | 1,368 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Reportable segment comparable operating earnings | 124 | 63 | 224 | 131 |
Reconciling items | ||||
Business consolidation and other activities | (1) | (3) | (3) | (6) |
Operating Segments | Beverage packaging, South America | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Net sales | 452 | 329 | 939 | 734 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Reportable segment comparable operating earnings | 78 | 46 | 171 | 109 |
Reconciling items | ||||
Business consolidation and other activities | 21 | (3) | 20 | (4) |
Operating Segments | Aerospace | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Net sales | 459 | 438 | 883 | 870 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Reportable segment comparable operating earnings | 34 | 30 | 69 | 70 |
Other | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Net sales | 118 | 68 | 240 | 166 |
Reconciling items | ||||
Business consolidation and other activities | (6) | (105) | (11) | (213) |
Rexam | ||||
Reconciling items | ||||
Amortization of acquired Rexam intangibles | $ (38) | $ (37) | $ (76) | $ (74) |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Acquisitions (Details) - Tubex Industria E Comercio De Embalagens Ltda [Member] $ in Millions | 1 Months Ended |
Aug. 31, 2020USD ($) | |
Business Acquisition [Line Items] | |
Total consideration | $ 80 |
Cash consideration | 69 |
Additional potential consideration | $ 30 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Dispositions (Details) $ in Millions | 1 Months Ended |
Jun. 30, 2021USD ($) | |
Disposition | |
Proceeds from sale of minority-owned investment | $ 30 |
Scenario, Plan [Member] | |
Disposition | |
Proceeds from sale of minority-owned investment | $ 120 |
Revenue from Contracts With C_3
Revenue from Contracts With Customers - Disaggregation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 3,459 | $ 2,801 | $ 6,584 | $ 5,586 |
Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 624 | 531 | 1,234 | 1,034 |
Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 2,835 | $ 2,270 | $ 5,350 | $ 4,552 |
Revenue from Contracts With C_4
Revenue from Contracts With Customers - Contract balances (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |||||
Contract assets | $ 0 | $ 0 | $ 0 | ||
Contract Liabilities (Current) | 244,000,000 | 244,000,000 | 108,000,000 | ||
Contract Liabilities (Noncurrent) | 25,000,000 | 25,000,000 | $ 29,000,000 | ||
Increase (decrease) current contract liabilities | 136,000,000 | ||||
Increase (decrease) noncurrent contract liabilities | (4,000,000) | ||||
Total increase (decrease) in contract liabilities | 132,000,000 | ||||
Cash received on contract liabilities | 359,000,000 | ||||
Revenue recognized as sales | 227,000,000 | ||||
Revenue recognized from opening balance of contract liabilities | 108,000,000 | ||||
Revenue recognized from obligations satisfied or partially satisfied in prior periods | $ 4,000,000 | $ (5,000,000) | $ 11,000,000 | $ 4,000,000 |
Revenue from Contracts With C_5
Revenue from Contracts With Customers - Performance obligations (Details) $ in Millions | Jun. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Sales expected to be recognized on multi-year contracts in place as of the end of the period | $ 2,843 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
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 | $ 1,444 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
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 | $ 1,399 |
Business Consolidation and Ot_3
Business Consolidation and Other Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Business consolidation and other activities | ||||||
Business consolidation and other activities | $ 12 | $ (112) | $ 5 | $ (227) | ||
Gain related to indirect tax contingencies | 22 | $ 4 | ||||
Operating Segments | Beverage packaging, North And Central America | ||||||
Business consolidation and other activities | ||||||
Business consolidation and other activities | (2) | (1) | (1) | (4) | ||
Individually insignificant activities | 2 | 1 | 1 | 4 | ||
Operating Segments | Beverage packaging, EMEA | ||||||
Business consolidation and other activities | ||||||
Business consolidation and other activities | (1) | (3) | (3) | (6) | ||
Individually insignificant activities | 1 | 3 | 3 | 6 | ||
Operating Segments | Beverage packaging, South America | ||||||
Business consolidation and other activities | ||||||
Business consolidation and other activities | 21 | (3) | 20 | (4) | ||
Individually insignificant activities | 1 | 3 | 2 | 4 | ||
Gain related to indirect tax contingencies | 22 | 22 | ||||
Other | ||||||
Business consolidation and other activities | ||||||
Business consolidation and other activities | (6) | (105) | (11) | (213) | ||
Individually insignificant activities | 1 | 8 | 6 | 21 | ||
Impairment of goodwill | $ 62 | 62 | ||||
Reversal of previously recorded expenses related to facilities closure | 11 | |||||
Impairment of assets sold | $ 5 | $ 5 | ||||
Settlement loss | $ 97 | 97 | ||||
Other | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Beverage packaging China | ||||||
Business consolidation and other activities | ||||||
Write down at business disposal | 23 | |||||
Other | Disposal Group, Disposed of by Sale, Not Discontinued Operations | US steel food and steel aerosol packaging | ||||||
Business consolidation and other activities | ||||||
Write down at business disposal | 15 | |||||
Other | Rexam | ||||||
Business consolidation and other activities | ||||||
Acquisition costs | $ 6 |
Supplemental Cash Flow Statem_3
Supplemental Cash Flow Statement Disclosures (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Cash, Cash Equivalents and Restricted Cash | ||||
Cash and cash equivalents | $ 571 | $ 1,366 | $ 643 | $ 1,798 |
Current restricted cash | $ 15 | 15 | $ 10 | 8 |
Location of current restricted cash | Other current assets | Other current assets | ||
Total cash, cash equivalents and restricted cash | $ 586 | 1,381 | $ 653 | $ 1,806 |
Other Non-cash items | ||||
PP&E acquired but not yet paid | $ 565 | $ 409 |
Receivables, Net (Details)
Receivables, Net (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Receivables, Net | ||
Trade accounts receivable | $ 1,462 | $ 825 |
Unbilled receivables | 649 | 528 |
Less allowances for doubtful accounts | (9) | (9) |
Net trade accounts receivable | 2,102 | 1,344 |
Other receivables | 518 | 394 |
Receivables, net | 2,620 | 1,738 |
Maximum available sale of the accounts receivables under factoring program | 1,800 | 1,600 |
Amount of accounts receivable available for sale under the factoring program | $ 327 | $ 232 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventories, Net | ||
Raw materials and supplies | $ 945 | $ 889 |
Work-in-process and finished goods | 639 | 557 |
Less inventory reserves | (94) | (93) |
Inventories, net | $ 1,490 | $ 1,353 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 9,655 | $ 9,655 | $ 8,913 | ||
Accumulated depreciation | (3,740) | (3,740) | (3,562) | ||
Net property, plant and equipment | 5,915 | 5,915 | 5,351 | ||
Depreciation expense | 127 | $ 126 | 250 | $ 250 | |
Land | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 164 | 164 | 163 | ||
Buildings | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 1,867 | 1,867 | 1,653 | ||
Machinery and equipment | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 6,607 | 6,607 | 6,214 | ||
Construction-in-progress | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 1,017 | $ 1,017 | $ 883 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Goodwill | ||||
Balance at the beginning of the period | $ 4,484 | |||
Effects of currency exchange | (36) | |||
Balance at the end of the period | 4,448 | |||
Accumulated impairment, goodwill | 62 | $ 62 | ||
Goodwill | 4,448 | 4,484 | ||
Beverage packaging, North And Central America | ||||
Goodwill | ||||
Balance at the beginning of the period | 1,275 | |||
Balance at the end of the period | 1,275 | |||
Goodwill | 1,275 | 1,275 | ||
Beverage packaging, South America | ||||
Goodwill | ||||
Balance at the beginning of the period | 1,298 | |||
Balance at the end of the period | 1,298 | |||
Goodwill | 1,298 | 1,298 | ||
Beverage packaging, EMEA | ||||
Goodwill | ||||
Balance at the beginning of the period | 1,573 | |||
Effects of currency exchange | (33) | |||
Balance at the end of the period | 1,540 | |||
Goodwill | 1,540 | 1,573 | ||
Aerospace | ||||
Goodwill | ||||
Balance at the beginning of the period | 40 | |||
Balance at the end of the period | 40 | |||
Goodwill | 40 | 40 | ||
Other | ||||
Goodwill | ||||
Balance at the beginning of the period | 298 | |||
Impairment of goodwill | $ 62 | $ 62 | ||
Effects of currency exchange | (3) | |||
Balance at the end of the period | 295 | |||
Goodwill | $ 295 | $ 298 |
Intangibles Assets, Net (Detail
Intangibles Assets, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Total annual intangible asset amortization expense | |||||
Intangible assets (net of accumulated amortization) | $ 1,785 | $ 1,785 | $ 1,883 | ||
Amortization expense | 45 | $ 44 | 90 | $ 89 | |
Customer-Related Intangible Assets [Member] | |||||
Total annual intangible asset amortization expense | |||||
Intangible assets (net of accumulated amortization) | 1,694 | 1,694 | 1,785 | ||
Accumulated amortization | 799 | 799 | 729 | ||
Computer Software, Intangible Asset [Member] | |||||
Total annual intangible asset amortization expense | |||||
Intangible assets (net of accumulated amortization) | 65 | 65 | 69 | ||
Accumulated amortization | 206 | 206 | 196 | ||
Other Intangible Assets [Member] | |||||
Total annual intangible asset amortization expense | |||||
Intangible assets (net of accumulated amortization) | 26 | 26 | 29 | ||
Accumulated amortization | $ 94 | $ 94 | $ 124 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Other assets | |||
Long-term pension assets | $ 579 | $ 562 | |
Investments in affiliates | 305 | 321 | |
Right-of-use operating lease assets | 383 | 302 | |
Long-term deferred tax assets | 155 | 227 | |
Other | 547 | 447 | |
Other Assets | $ 1,969 | $ 1,859 | |
Share of equity method losses | $ 30 |
Leases - Supplemental informati
Leases - Supplemental information (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Supplemental balance sheet information | ||
Balance sheet location for operating lease assets | Other assets | |
Operating lease right-of-use assets | $ 383 | $ 302 |
Balance sheet location for operating lease current liabilities | Other current liabilities | |
Current operating lease liabilities | $ 75 | 63 |
Balance sheet location for operating lease noncurrent liabilities | Other liabilities | |
Noncurrent operating lease liabilities | $ 310 | 232 |
Finance lease ROU assets, net | $ 10 | 11 |
Balance sheet location for finance lease current liabilities | Short-term debt and current portion of long-term debt | |
Current finance lease liabilities | $ 2 | 2 |
Noncurrent finance lease liabilities | $ 9 | $ 10 |
Debt - Long term debt (Details)
Debt - Long term debt (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Long-term debt | ||
Finance lease obligations | $ 11 | $ 12 |
Other (including debt issuance costs) | (53) | (60) |
Long-term debt, Total | 7,708 | 7,786 |
Less: Current portion of long-term debt | (738) | (3) |
Long-term debt excluding current maturities | 6,970 | 7,783 |
Senior Notes 5.00 percent, due March 2022 | ||
Long-term debt | ||
Long-term Debt, Gross | $ 736 | 748 |
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 | $ 830 | 855 |
Interest rate (as a percent) | 4.375% | |
Senior Notes 0.875 Percent, euro denominated, due March 2024 | ||
Long-term debt | ||
Long-term Debt, Gross | $ 889 | 916 |
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 | $ 652 | 672 |
Interest rate (as a percent) | 1.50% | |
Senior Notes 2.875 Percent Due August 2030 [Member] | ||
Long-term debt | ||
Long-term Debt, Gross | $ 1,300 | 1,300 |
Interest rate (as a percent) | 2.875% | |
Term A loan, due June 2024 | ||
Long-term debt | ||
Long-term Debt, Gross | $ 593 | $ 593 |
Debt - Activity (Details)
Debt - Activity (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
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 | 1,700 | |
Short-term uncommitted credit facilities | ||
Revolving credit facility | ||
Available borrowing capacity under line of credit facility | 1,000 | |
Amount of credit facility outstanding and due on demand | $ 33 | $ 14 |
Senior Notes 2.875 Percent Due August 2030 [Member] | ||
Long-term debt | ||
Interest rate (as a percent) | 2.875% |
Debt - FV, Maturities, etc. (De
Debt - FV, Maturities, etc. (Details) $ in Billions | 6 Months Ended | |
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Long term debt value | ||
Leverage ratio, maximum | 5 | |
Leverage ratio, subsequent period | 4.5 | |
Level 2 | ||
Long term debt value | ||
Fair value of the long-term debt | $ 8.1 | $ 8.3 |
Taxes on Income (Details)
Taxes on Income (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Effective income tax changes by percentage | ||||
Effective tax rate expressed as a percentage of pre-tax earnings | 37.80% | 20.70% | 27.40% | (12.30%) |
Effective income tax rate, foreign tax rate differential | (0.80%) | 4.20% | (2.60%) | 0.50% |
Effective income tax rate reduction for expense in share based compensation | 3.70% | 17.20% | ||
Effective income tax rate reduction for federal tax credits | 3.80% | 11.20% | 3.20% | 9.40% |
Effective income tax rate, increase for enacted tax rate changes | 18.40% | 10.50% | ||
Effective income tax rate (increase) reduction for equity in results of affiliates loss | 0.20% | (3.80%) | ||
Effective income tax rate increase for impact of foreign currency fluctuations on deferred tax assets | 8.40% | 9.20% | ||
Effective income tax rate increase for goodwill impairment | 10.00% |
Employee Benefit Obligations -
Employee Benefit Obligations - Total (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Employee Benefit Obligations | ||
Underfunded defined benefit pension liabilities | $ 810 | $ 955 |
Less current portion | (23) | (24) |
Long-term defined benefit pension liabilities | 787 | 931 |
Long-term retiree medical liabilities | 151 | 156 |
Deferred compensation plans | 396 | 439 |
Other | 59 | 87 |
Total non-current employee benefit obligations | $ 1,393 | $ 1,613 |
Employee Benefit Obligations _2
Employee Benefit Obligations - Components of net periodic benefit cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Selling, general and administrative | ||||
Ball-sponsored plans: | ||||
Non-service pension income | $ 11 | $ 6 | $ 21 | $ 12 |
Defined Benefit Pension Plans | ||||
Ball-sponsored plans: | ||||
Contributions to pension plans | 167 | 11 | ||
Expected contributions to pension plans for the full year | 215 | 215 | ||
Defined Benefit Pension Plans | Ball Sponsored Plans | ||||
Ball-sponsored plans: | ||||
Service cost | 24 | 20 | 48 | 40 |
Interest cost | 22 | 33 | 44 | 67 |
Expected return on plan assets | (47) | (52) | (94) | (104) |
Amortization of prior service cost | 1 | 1 | 2 | 2 |
Recognized net actuarial loss | 13 | 12 | 27 | 23 |
Settlement losses | 97 | 97 | ||
Total net periodic benefit cost | 13 | 111 | 27 | 125 |
U.S. | Defined Benefit Pension Plans | Ball Sponsored Plans | ||||
Ball-sponsored plans: | ||||
Service cost | 21 | 16 | 42 | 32 |
Interest cost | 13 | 18 | 26 | 38 |
Expected return on plan assets | (31) | (31) | (62) | (62) |
Amortization of prior service cost | 1 | 1 | 1 | 1 |
Recognized net actuarial loss | 11 | 10 | 24 | 20 |
Settlement losses | 97 | 97 | ||
Total net periodic benefit cost | 15 | 111 | 31 | 126 |
Foreign | Defined Benefit Pension Plans | Ball Sponsored Plans | ||||
Ball-sponsored plans: | ||||
Service cost | 3 | 4 | 6 | 8 |
Interest cost | 9 | 15 | 18 | 29 |
Expected return on plan assets | (16) | (21) | (32) | (42) |
Amortization of prior service cost | 1 | 1 | ||
Recognized net actuarial loss | 2 | $ 2 | 3 | 3 |
Total net periodic benefit cost | $ (2) | $ (4) | $ (1) |
Equity and Comprehensive Earn_3
Equity and Comprehensive Earnings - Equity activity (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity | ||||
Balance at beginning of the period | $ 3,554 | $ 2,700 | $ 3,337 | $ 3,019 |
Net earnings | 202 | 92 | 402 | 115 |
Other comprehensive earnings (loss), net of tax, excluding currency translation on assets transferred to held for sale | 100 | 71 | 157 | (158) |
Common dividends, net of tax benefits | (48) | (50) | (98) | (99) |
Treasury stock purchases | (139) | (149) | (54) | |
Treasury shares reissued | 8 | 7 | 16 | 14 |
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | 24 | 2 | 36 | (25) |
Other activity | 8 | 18 | ||
Balance at end of the period | 3,701 | 2,830 | 3,701 | 2,830 |
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance at beginning of the period | $ 1,171 | $ 1,151 | $ 1,167 | $ 1,178 |
Balance (in shares) | 680,014 | 678,128 | 679,524 | 676,302 |
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | $ 24 | $ 2 | $ 28 | $ (25) |
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged (in shares) | 232 | 356 | 722 | 2,182 |
Balance at end of the period | $ 1,195 | $ 1,153 | $ 1,195 | $ 1,153 |
Balance (in shares) | 680,246 | 678,484 | 680,246 | 678,484 |
Treasury Stock, Common | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance at beginning of the period | $ (3,124) | $ (3,159) | $ (3,130) | $ (3,122) |
Balance (in shares) | (351,899) | (352,209) | (351,939) | (351,667) |
Treasury stock purchases | $ (139) | $ (149) | $ (54) | |
Treasury stock purchases (in shares) | (1,651) | (1,772) | (774) | |
Treasury shares reissued | $ 8 | $ 7 | $ 16 | $ 14 |
Treasury shares reissued (in shares) | 75 | 106 | 236 | 338 |
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | $ 8 | |||
Other activity | $ 7 | $ 17 | ||
Other activity (in shares) | 1 | 1 | ||
Balance at end of the period | $ (3,255) | $ (3,145) | $ (3,255) | $ (3,145) |
Balance (in shares) | (353,475) | (352,102) | (353,475) | (352,102) |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance at beginning of the period | $ 6,342 | $ 5,777 | $ 6,192 | $ 5,803 |
Net earnings | 202 | 94 | 402 | 117 |
Common dividends, net of tax benefits | (48) | (50) | (98) | (99) |
Other activity | 1 | 1 | ||
Balance at end of the period | 6,496 | 5,822 | 6,496 | 5,822 |
Accumulated Other Comprehensive Earnings (Loss). | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance at beginning of the period | (897) | (1,139) | (954) | (910) |
Other comprehensive earnings (loss), net of tax, excluding currency translation on assets transferred to held for sale | 100 | 71 | 157 | (158) |
Balance at end of the period | (797) | (1,068) | (797) | (1,068) |
Noncontrolling Interest | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance at beginning of the period | 62 | 70 | 62 | 70 |
Net earnings | (2) | (2) | ||
Balance at end of the period | $ 62 | $ 68 | $ 62 | $ 68 |
Equity and Comprehensive Earn_4
Equity and Comprehensive Earnings - AOCI Activity (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Accumulated Other Comprehensive Earnings (Loss) | |
Stockholders' Equity Attributable to Parent, Beginning Balance | $ 3,275 |
Stockholders' Equity Attributable to Parent, Ending Balance | 3,639 |
Foreign Currency Translation | |
Accumulated Other Comprehensive Earnings (Loss) | |
Stockholders' Equity Attributable to Parent, Beginning Balance | (555) |
Other comprehensive earnings (loss) before reclassifications | 36 |
Stockholders' Equity Attributable to Parent, Ending Balance | (519) |
Pension and Other Postretirement Benefits (Net of Tax) | |
Accumulated Other Comprehensive Earnings (Loss) | |
Stockholders' Equity Attributable to Parent, Beginning Balance | (466) |
Other comprehensive earnings (loss) before reclassifications | 18 |
Reclassification of net deferred (gains) losses into earnings | 21 |
Stockholders' Equity Attributable to Parent, Ending Balance | (427) |
Effective Derivatives (Net of Tax) | |
Accumulated Other Comprehensive Earnings (Loss) | |
Stockholders' Equity Attributable to Parent, Beginning Balance | 67 |
Other comprehensive earnings (loss) before reclassifications | 100 |
Reclassification of net deferred (gains) losses into earnings | (18) |
Stockholders' Equity Attributable to Parent, Ending Balance | 149 |
Accumulated Other Comprehensive Earnings (Loss). | |
Accumulated Other Comprehensive Earnings (Loss) | |
Stockholders' Equity Attributable to Parent, Beginning Balance | (954) |
Other comprehensive earnings (loss) before reclassifications | 154 |
Reclassification of net deferred (gains) losses into earnings | 3 |
Stockholders' Equity Attributable to Parent, Ending Balance | $ (797) |
Equity and Comprehensive Earn_5
Equity and Comprehensive Earnings - AOCI Additional Details (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Gains (losses) on cash flow hedges | ||||
Net sales | $ 3,459 | $ 2,801 | $ 6,584 | $ 5,586 |
Business consolidation and other activities | 12 | (112) | 5 | (227) |
Earnings before taxes | 307 | 111 | 540 | 155 |
Tax benefit (expense) on amounts reclassified into earnings | (116) | (23) | (148) | (19) |
Net earnings | 202 | 92 | 402 | 115 |
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||
Gains (losses) on cash flow hedges | ||||
Earnings before taxes | (16) | (15) | 20 | 5 |
Tax benefit (expense) on amounts reclassified into earnings | 5 | 3 | (2) | (2) |
Net earnings | (11) | (12) | 18 | 3 |
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Commodity contracts | ||||
Gains (losses) on cash flow hedges | ||||
Net sales | (45) | 37 | (61) | 37 |
Cost of sales, net | 32 | (39) | 42 | (35) |
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 | (2) | (3) | ||
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, net | (3) | (11) | 39 | 7 |
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Cross-currency swap | ||||
Gains (losses) on cash flow hedges | ||||
Selling, general and administrative, net | (1) | |||
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 | (14) | (114) | (29) | (125) |
Tax benefit (expense) on amounts reclassified into earnings | 4 | 28 | 8 | 31 |
Recognized gain (loss), net of tax | (10) | (86) | (21) | (94) |
Prior service income (expense) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||
Amortization Of Pension And Other Postretirement Benefits: | ||||
Total before tax effect | (1) | (1) | (2) | (1) |
Actuarial gains (losses) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||
Amortization Of Pension And Other Postretirement Benefits: | ||||
Total before tax effect | $ (13) | (9) | $ (27) | (20) |
Effect of pension settlement | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | ||||
Amortization Of Pension And Other Postretirement Benefits: | ||||
Total before tax effect | $ (104) | $ (104) |
Earnings and Dividends per Sh_3
Earnings and Dividends per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Jul. 28, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Earnings per share | |||||
Net earnings attributable to Ball Corporation | $ 202 | $ 94 | $ 402 | $ 117 | |
Basic weighted average common shares | 327,625 | 325,994 | 327,718 | 325,670 | |
Effect of dilutive securities (in shares) | 5,753 | 5,723 | 5,897 | 6,214 | |
Weighted average shares applicable to diluted earnings per share | 333,378 | 331,717 | 333,615 | 331,884 | |
Per basic share (in dollars per share) | $ 0.62 | $ 0.29 | $ 1.23 | $ 0.36 | |
Per diluted share (in dollars per share) | $ 0.61 | $ 0.28 | $ 1.20 | $ 0.35 | |
Options excluded from EPS calculation | |||||
Number of outstanding options excluded from computation of diluted earnings per share | 1,000 | 1,000 | 1,000 | 1,000 | |
Dividends declared and paid | |||||
Dividends paid (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.30 | $ 0.30 | |
Subsequent Event. | |||||
Dividends declared and paid | |||||
Dividends declared (in dollars per share) | $ 0.20 | ||||
Dividends, percentage increase | 33.00% |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - General (Details) $ / shares in Units, item in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2021USD ($)itemapproach$ / shares | Dec. 31, 2020USD ($) | |
Financial Instruments and Risk Management | ||
Aggregate fair value of derivative instruments with credit-risk-related contingent features that were in a net liability position | $ 12 | $ 52 |
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 | $ 1,685 | |
Gain (loss) on derivatives included in AOCI, net of tax | 122 | |
Net gain (loss) expected to be recognized in net earnings within the next 12 months | $ 107 | |
Commodity contracts | Cash Flow Hedging | ||
Financial Instruments and Risk Management | ||
Period within which derivative will expire | 3 years | |
Currency Exchange Rate Risk | ||
Financial Instruments and Risk Management | ||
Notional amount of derivatives | $ 2,784 | |
Gain (loss) on derivatives included in AOCI, net of tax | 27 | |
Net gain (loss) expected to be recognized in net earnings within the next 12 months | $ 21 | |
Currency Exchange Rate Risk | Cash Flow Hedging | ||
Financial Instruments and Risk Management | ||
Period within which derivative will expire | 4 years | |
Interest rate swap and option contracts | ||
Financial Instruments and Risk Management | ||
Notional amount of derivatives | $ 1,930 | |
Interest rate swap and option contracts | Cash Flow Hedging | ||
Financial Instruments and Risk Management | ||
Period within which derivative will expire | 2 years | |
Equity contracts | ||
Financial Instruments and Risk Management | ||
Combined notional value, shares | item | 2.6 | |
Change in company's stock price (in dollars per share) | $ / shares | $ 1 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Measurements | ||
Total current derivative contracts, assets | $ 168 | $ 82 |
Total noncurrent derivative contracts, assets | 41 | 8 |
Total current derivative contracts, liabilities | 45 | 84 |
Total noncurrent derivative contracts, liabilities | 3 | 10 |
Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 145 | 50 |
Total noncurrent derivative contracts, assets | 20 | |
Total current derivative contracts, liabilities | 29 | 17 |
Total noncurrent derivative contracts, liabilities | 10 | |
Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 22 | 30 |
Total noncurrent derivative contracts, assets | 21 | 8 |
Total current derivative contracts, liabilities | 6 | 63 |
Total noncurrent derivative contracts, liabilities | 3 | |
Other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 1 | 2 |
Total current derivative contracts, liabilities | 10 | 4 |
Derivatives Designated As Hedging Instruments | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 151 | 53 |
Total noncurrent derivative contracts, assets | 41 | 8 |
Total current derivative contracts, liabilities | 29 | 17 |
Total noncurrent derivative contracts, liabilities | 8 | |
Derivatives Designated As Hedging Instruments | Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 145 | 50 |
Total noncurrent derivative contracts, assets | 20 | |
Total current derivative contracts, liabilities | 28 | 17 |
Total noncurrent derivative contracts, liabilities | 8 | |
Derivatives Designated As Hedging Instruments | Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 5 | 3 |
Total noncurrent derivative contracts, assets | 21 | 8 |
Total current derivative contracts, liabilities | 1 | |
Derivatives Designated As Hedging Instruments | Other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 1 | |
Derivatives Not Designated as Hedging Instruments | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 17 | 29 |
Total current derivative contracts, liabilities | 16 | 67 |
Total noncurrent derivative contracts, liabilities | 3 | 2 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, liabilities | 1 | |
Total noncurrent derivative contracts, liabilities | 2 | |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 17 | 27 |
Total current derivative contracts, liabilities | 5 | 63 |
Total noncurrent derivative contracts, liabilities | 3 | |
Derivatives Not Designated as Hedging Instruments | Other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 2 | |
Total current derivative contracts, liabilities | $ 10 | $ 4 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Impact on Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | $ (16) | $ (15) | $ 20 | $ 5 |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (21) | 39 | (8) | 60 |
Amounts reclassified into earnings: | ||||
Commodity contracts | 13 | 2 | 19 | (2) |
Interest rate contracts | 2 | 3 | ||
Cross currency swap contracts | 1 | |||
Currency exchange contracts | 3 | 11 | (39) | (7) |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | (16) | (15) | 20 | 5 |
Changes in accumulated other comprehensive earnings (loss) for effective derivatives | 45 | 10 | 82 | 15 |
Commodity contracts | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 42 | 1 | 93 | (29) |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | 42 | 1 | 93 | (29) |
Commodity contracts | Net sales | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (45) | 37 | (61) | 37 |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 1 | |||
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | (45) | 37 | (61) | 37 |
Commodity contracts | Cost of sales | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 32 | (39) | 42 | (35) |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 3 | 10 | 6 | 9 |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | 32 | (39) | 42 | (35) |
Interest rate contracts | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (2) | (4) | ||
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | (2) | (4) | ||
Interest rate contracts | Interest expense. | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (2) | (3) | ||
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) | (3) | ||
Foreign currency contracts | Selling, general and administrative | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (3) | (11) | 39 | 7 |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (15) | 18 | 20 | 40 |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | (3) | (11) | 39 | 7 |
Cross-currency swap | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 1 | |||
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | 1 | |||
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) | |||
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | (1) | |||
Equity contracts | Selling, general and administrative | ||||
Impact on Earnings from Derivative Instruments | ||||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | (9) | 12 | (34) | 10 |
Currency exchange contracts | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 1 | (3) | 32 | 55 |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | 1 | (3) | 32 | 55 |
Foreign currency and tax impacts | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (14) | (1) | (23) | (3) |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (14) | $ (1) | $ (23) | $ (3) |
Contingencies (Details)
Contingencies (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($)item | |
Income Tax Uncertainties [Abstract] | |||
Number of subsidiaries assessed for disallowed deductions | item | 1 | ||
Gain related to indirect tax contingencies | $ 22 | $ 4 | |
Other Current Liabilities And Other Noncurrent Liabilities | |||
Environmental remediation | |||
Estimated potential liability for all environmental matters | $ 27 | $ 27 |
Indemnifications and Guarante_2
Indemnifications and Guarantees (Details) - Debt Guarantees | 6 Months Ended |
Jun. 30, 2021 | |
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% |